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WHEREAS, the Successor Agency is the successor in interest to the Age ncy <br />under the Dissolution Law; and <br /> <br /> WHEREAS, pursuant to Section 34191.4 of the Dissolution Law, following the <br />receipt of a finding of completion from the California State Department of Finance (the <br />“DOF”), the Loan Agreement shall be deemed to be an enforceable obligation; subject <br />to approval by the oversight board, and provided further that the oversight board make a <br />finding that the Loan was for legitimate redevelopment purposes; and <br /> <br /> WHEREAS, upon the finding of the oversight board that the Loan is an <br />enforceable obligation, the interest on the Outstanding Balance of the Loan shall be <br />recalculated from origination at the rate of 3%; and <br /> <br /> WHEREAS, Pursuant to Section 34191.4(b) of the Dissolution Law, repayment of <br />the Loan is subject to the following restrictions: <br /> <br />(a) the Loan must be repaid over a reasonable term of years at an interest <br />rate not to exceed 3%; and <br /> <br />(b) the maximum repayment amount authorized each fiscal year for <br />repayment of the Loan cannot exceed one-half of the increase between the <br />amount distributed to the taxing entities in that fiscal year and the amount <br />distributed to taxing entities in fiscal year 2012-2013; and <br /> <br />(c) twenty percent of any Loan repaym ents shall be deducted from the <br />amount repaid and transferred to the Low and Moderate Income Housing Asset <br />Fund (as defined in the Dissolution Law); and <br /> <br /> WHEREAS, the Successor Agency has prepared a repayment schedule that <br />reflects the requirements of Section 34191.4(b). <br /> <br /> NOW, THEREFORE, for good and valuable consideration, the receipt and <br />sufficiency of which are hereby acknowledged, the Parties to this Agreement agree as <br />follows: <br />ARTICLE 1 <br />REPAYMENT TERMS <br /> <br />1.1 Repayment Terms. <br /> <br />(a) Repayment Amount. Successor Agency agrees to repay to City, the principal <br />amount of the Loan of Two Million Two Hundred and Ninety-Nine Thousand <br />Three Hundred and Fifteen Dollars ($2,299,315.00) plus interest, calculated as <br />set forth in Section 1.1(b). <br />