Agmt 2013 San Leandro Unified School District SLUSD

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LOAN AGREEMENT BETWEEN THE CITY OF SAN LEANDRO AND THE SAN LEANDRO UNIFIED SCHOOL DISTRICT r THIS LOAN AGREEMENT (this "Agreement") is entered into effective as of t J. 2(.Q , 2013 ("Effective Date") by and between the City of San Leandro, a municipal corporation (the "City") and the San Leandro Unified School District, a political subdivision of the State of California (the "District"). RECITALS A. The District is in the process of negotiating the purchase of a property in the City that is owned by Girls, Inc., a non-profit corporation, that will be used by the District to directly support the educational and administrative functions of the District (the "Property"); and B. The City, pursuant to and in accordance with its Charter and State law, may loan monies from its various funds for any public purpose; and C. The City Council found by Resolution No. .0I3'Q/[dated February 4, 2013 that it is a public purpose and within the City's power and interest to loan the District monies from its General Fund reserves to support the educational objectives of the District related to its purchase of the Property. NOW, THEREFORE, for good and valuable consideration, the sufficiency of which is hereby acknowledged, the City and the District agree as follows: 1. Loan. The City agrees to loan to the District, and the District agrees to borrow from and repay to City the sum of One million, two hundred fifty thousand dollars ($1,250,000.00) (the "Loan") upon the terms and conditions and for the purposes set forth in this Agreement. The Loan shall be evidenced by a promissory note (the "Note") which shall be dated as of the Effective Date and executed by the District in the form attached hereto as Exhibit A. The Term of this Agreement shall be 15 years from the Effective Date until the principal, and all interest, if any, shall have been paid in full, and all other obligations satisfied. 2. Interest Rate; Maturity Date; Prepayment. Interest shall accrue on the outstanding principal balance of the Note commencing upon the date of disbursement of the Loan proceeds and continuing as follows for the 15 years of the term until the Note is paid in full: Years 1 —3: 1.5% simple interest per annum Years 4— 10: 3% simple interest per annum 1293335-1 1