Agmt 1999 San Leandro Shelter for Women and Children

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CAPITAL IMPROVEMENT AGREEMENT FOR THE USE OF CDBG FUNDS This Agreement, dated for convenience as June 7, 1999, is entered into by and between City of San Leandro, a municipal corporation hereinafter designated "City" and San Leandro Shelter for Women and Children, a California nonprofit public benefit corporation, hereinafter designated "Recipient." RECITALS WHEREAS, City is desirous of contracting with Recipient for the acquisition of a home to be used as a safe house for battered women and their children; and WHEREAS, City wishes to provide funds for this purpose; and WHEREAS, such expenditure meets the national objectives for the use of CDBG funds; and WHEREAS, Recipient is willing and able to perform duties and render services which are determined by City to be necessary or appropriate for the welfare of residents of the City; and WHEREAS, City desires that such duties and services be provided by Recipient, and Recipient agrees to perform such duties and render such services, as more particularly set forth below. NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties hereto agree as follows: ARTICLE I: LOAN SECTION 1.01 LOAN Subject to the terms and conditions of this Agreement, City hereby agrees to Loan to Recipient One Hundred Eighty Thousand Dollars ($180,000), which shall bear interest at the rate of two percent (2%) per annum simple interest, through the Term of this Agreement. The Term of this Agreement shall be thirty (30) years. The entire principal and accrued interest shall be deferred for the Term and shall be due and payable at the end of the Term, except as provided below. If Recipient fulfills the 1