Res 1993-213 - Laserfiche WebLink

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. 81 , ECONOMIC DEVELOPMENT AGREEMENT This Agreement is made this the 7th day of December, 19 ~, between the CITY OF SAN MARCOS, TEXAS, hereinafter referred to as "CITY", 630 East Hopkins, San Marcos, Texas 78666, and PROSEED (U.S.A.), INC., 1800 LH. 35 South, 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 Revolving Loan Fund Program. WITNESSETH: U"u- WHEREAS, the CITY, through its Revolving Loan Fund (" RLF " ) Program, 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 RLF Program; now, therefore, In consideration of the mutual covenants and agreements contained herein the parties do agree as follows: ARTICLE 1 EQUIP:KKNT LIEN NOTE 1.1 DEBTOR promises to pay to the CITY, attentión of the Finance Department - Accounts Receivable, Seventy-Five Thousand Dollars ($75,000.00) together with accrued interest until paid at the rate of five percent (5%) a.p.r. Principal and interest will be paid not later than the 30th day of each month in monthly installments, until paid as follows: Purpose Amount Term Amt./Mo. - a) Equipment Repair $30,000.00 5yrs. $ 566.14 b) Working Capital $45,000.00 3yrs. $1,348.69 I Total: $75,000.00 $1,914.83 1.2 Each installment will be applied to the payment of accrued interest on the unpaid principal first; the remainder will be applied to the reduction of unpaid principal. All unpaid amounts will be due on the final scheduled payment date. 1.3 This note is secured by a Security Agreement which covers the equipment of the DEBTOR, specifically a Mulch Roll Production Unit (MRPU-1). If there is a breach in the observance of any covenants of any instruments securing the note or in any of the conditions of this Agreement by DEBTOR, the debt evidenced by this $75,000.00 note will immediately become payable to the CITY at CITY'S option.