Agmt 2015 Trust of Sung H Paskewitz

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forth in Section 2.3, the Loan Proceeds shall be disbursed in accordance with Section 2.2 hereof. The Parties agree that the City shall disburse Loan Proceeds only for and to the extent necessary for the purposes set forth in Section 2.1. 1.2 INTEREST RATE; REPAYMENT; LOAN FORGIVENESS. The outstanding principal balance of the Note shall bear interest at the rate of three percent (3%) simple interest per annum. Provided that Owner is not in default under the Loan Documents, no payments shall be due on the Loan. The entire outstanding principal balance of the Loan together with accrued interest and all other sums due under the Loan Documents shall be payable in full upon the occurrence of an Event of Default. 1.2.1 LOAN FORGIVENESS. One hundred and eighty (180) days after the Effective Date, the entire outstanding balance of the Loan, together with accrued interest, shall be forgiven, provided that no Event of Default has arisen under the Loan Documents. 1.3 PREPAYMENT. The Note or any portion of the outstanding principal balance due under the Note may be prepaid at any time and from time to time, without penalty or premium. 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 accrued but unpaid interest and then to principal. In no event shall any amount due under the Note become subject to any rights of offset, deduction or counterclaim on the part of Owner. ARTICLE II USE AND DISBURSEMENT OF PROCEEDS 2.1 USE OF PROCEEDS. Owner shall use the proceeds of the Loan ("Loan Proceeds") solely and exclusively to pay for costs billed to Owner by third-parties in connection with the construction of the Project (as described in Exhibit A) and such other costs related to the Project as City may approve in writing. 2.2 DISBURSEMENT OF PROCEEDS. Upon satisfaction of the conditions set forth in Section 2.3, and delivery of copies of bills and invoices from third parties City shall disburse Loan Proceeds to Owner . 2.3 CONDITIONS PRECEDENT TO DISBURSEMENT OF PROCEEDS. City's obligation to disburse the Loan Proceeds is conditioned upon the satisfaction of all of the following conditions: (a) Owner's delivery to City of each of the following documents, fully- executed and acknowledged as applicable: (i) the Note, (ii) copies of bills, invoices, etc. from third parties and (iii) this Agreement; (b) Owner's delivery to the City of evidence of insurance coverage in accordance with the requirements set forth in Exhibit B attached hereto; Public Wi-Fi Installation 4 Loan Agreement