Res 1996-180 - Laserfiche WebLink

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41 - ECONOMIC DEVELOPMENT AGREEMENT . This Agreement is made this the15th day of October, 1996, between the CITY OF SAN MARCOS, TEXAS, hereinafter referred to as "City", 630 East Hopkins, San Marcos, Texas 78666, and X-SQUEEZE ME! JUICE, INC., 322 West Hopkins, San Marcos, Texas 78666 hereinafter referred to as "Debtor" for the purpose of providing "Gap" financing to Debtor according to the requirements of the City of San Marcos HUD Economic Development Program. WITNESSETH: WHEREAS, the City, through its HUD Economic Development Program ("HUD- EDP"), provides a source of capital for start-up, expansion or retention of small businesses located in the City of San Marcos with emphasis on creating and retaining permanent jobs; and, WHEREAS, Debtor is interested in maintaining and expanding its economic base in the City of San Marcos, and has applied for a loan from the City's HUD-EDP Program; now, therefore, . In consideration of the mutual covenants and agreements listed below, the parties agree as follows: ARTICLE 1 EQUIPMENT LIEN NOTE 1.1 Debtor promises to pay to the City, attention Finance Department - Accounts Receivable, Forty Thousand Dollars ($40,000.00 ) together with accrued interest until paid at the rate of five percent (5%) per annum. The Loan will be disbursed in two installments, $20,000.00 upon execution of the Agreement and $20,000.00 six months thereafter. Payments are due on the 1 st day of each month and delinquent, if not paid by the 5th. A penalty of 4% of the delinquent payment amount is due, in addition to the late payment, if the payment is made on or after the 10th day of the month. Interest is calculated based on a 360 day year. Principal and interest payments will be made according to the following payment schedule: Date Loan Disbursement Payments Amount 11/01/96 $20,000.00 1 - 6 $ 83.33 (Interest Only) - 05/0119& 97 $20,000.00 7 -12 166.67 (Interest Only) - 12/01/97 13 - 59 $ 504.86 (Principal & Interest) -