8D Consent 2008 0616 - Laserfiche WebLink

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1,2 REPAYMENT; INTEREST RATE; FORGIVENESS. 1,2.1 LOAN TERM AND REPAYMENT. The Term of this Agreement shall be twenty (20) years. Provided that Participant is not in default under the Loan Documents, the City shall forgive one twentieth (1/20th) or Two Thousand Five Hundred Dollars ($2,500.00) of the outstanding principal loan balance annually on the anniversary of the Effective Date of the Agreement. On the 20th anniversary of the Effective Date, provided that no default or breach by Participant has occurred pursuant to Article IV, the entire outstanding principal and interest accrued on the Loan shall be forgiven, 1.2.2 INTEREST. Interest shall accrue on the principal balance of the Loan at a rate of three percent (3%) simple interest per annum, 1.3 PREPAYMENT. Participant may, without premium or penalty, at any time and from time to time, prepay all or any portion of the outstanding principal balance due under the Note. Any prepayment of principal must be accompanied by interest accrued but unpaid to the date of receipt of prepayment. Prepayments shall be applied first to any unpaid late charges and other costs and fees then due, then to accrued but unpaid interest and then to principal, 1.4 USE OF PROCEEDS. Participant shall use the proceeds of the Loan (the "Loan Proceeds") solely and exclusively to pay for costs related to the Improvements described in Exhibit C and in accordance to the budget and timeline specified in Exhibit C. 1.5 DISBURSEMENT OF PROCEEDS. Participant shall submit separate written requests for each disbursement of Loan funds, each in substantially the form attached hereto as Exhibit D, with supporting evidence for all amounts requested (each a "Requisition"). Participant shall submit each Requisition to the City Manager, or his designee, stating the purpose and amount of the requested disbursement. Participant shall attach copies of any documents supporting the Requisition, including estimates, bids, receipts, invoices, contracts, payment schedules, or evidence of Participant's payment of preconstruction and rehabilitation expenses required to fund the Improvements. The supporting documents shall state the time period in which work was performed, and the expenses to be funded with the Loan proceeds. 1.6 NO OBLIGATION TO DISBURSE PROCEEDS UPON DEFAULT. Notwithstanding any other provision of this Agreement, the City shall have no obligation to disburse any portion of the Loan Proceeds if there is an occurrence of an Event of Default (defined below) under the Loan Documents. ARTICLE II CONSTRUCTION OF THE IMPROVEMENTS 2.1 CONSTRUCTION SCHEDULE. Participant shall adhere to the Project Construction Time Schedule attached hereto under the Scope of Work as Exhibit C. Participant must obtain written approval from the City for any changes to the Construction Schedule. Fiscal Year 08-09 2