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2% REVOLVING LOAN FUND <br />"Certification of Participation" <br />WHEREAS, on (the <br />"Private Lender ") has loaned the sum of <br />Dollars ($ ) (the "Loan ") to (the <br />"Borrower ") for financing improvements to an existing business located at <br />(the "Project ") in the City of Little Canada (the "City "); and <br />WHEREAS, on even date herewith the City of Little Canada has acquired a <br />participation in the Loan for the sum of Dollars <br />($ ), bearing interest at the rate of two percent (2% per annum, evidenced by <br />Note, dated due , until paid (the Private Lender <br />and the City being hereinafter referred to as the "Participants "); and <br />WHEREAS, THE private Lender agrees, during the term of the Participation <br />Agreement (the "Agreement "), to act as servicer on behalf of itself and the City in the <br />receipt and disbursement of all payments to and from the Borrower and in exercising any <br />remedies available against the Borrower with respect to security for the payment of all <br />amounts due under the Loan. <br />NOW THEREFORE, in consideration of the premises and the mutual benefits to <br />be derived there from, it is hereby agreed as follows: <br />1. The Private Lender shall have a percent ( %) interest in the Loan and the <br />City shall have a percent ( %) interest in the Loan, <br />Provided that the City's interest in the Loan shall be, as provided herein subordinate <br />to Private Lender's interest in the Loan. <br />2. The right of the City to any and all security for the repayment of <br />Loan shall be subordinate to the right of the Private Lender to receive any amounts <br />due to it from any security for the repayment of the Loan to the extent of the <br />Lender's interest in the Loan. <br />3. The right of the City to receive any repayments from the monthly <br />Payments made by the Borrower shall be subordinate to the right of the Private <br />Lender to receive all such monthly payments made by the Borrower. <br />4. So long as this Participation Agreement is in force and effect, Borrower may not <br />Relocate its existing business outside the city limits of the City. Upon doing so, the <br />City's portion of the loan will be immediately due and payable. <br />5. So long as the Borrower shall not be in default of its obligation to repay the loan, or <br />Of any of its obligations under any documents or instruments incidental thereto <br />(any such default referred to herein as an "Event of Default "), the Private Lender, <br />upon receipt of any monthly payment or any prepayment by the Borrower, shall <br />remit to the City that portion of said monthly payment or prepayment which <br />represents the City's pro rata share of the principal amount loaned by the Private <br />Lender. In no event shall the Private aAt withhold From the City any amount <br />