Laserfiche WebLink
PARTICIPATION AGREEMENT <br />Updated 3 -1 -2002 <br />THIS AGREEMENT is made this day of 2002, by and <br />between with an office at <br />(the "Lender ") and the Economic Development <br />Authority in and for the City of Columbia Heights, Minnesota, with its principal office at <br />590 40th Avenue NE, Columbia Heights, MN 55421 (the "Participant "). <br />WHEREAS, Participant has adopted a Plan for a Business Revolving Loan Fund <br />(the "Plan ") and the Lender is a qualified participating lender under the Plan; and <br />WHEREAS, Participant has approved the application of <br />(the "Borrower "), for participation in the Plan; and <br />WHEREAS, Lender has received and reviewed a copy of the Plan and desires to <br />participate as a Lender under the Plan; and <br />WHEREAS, Lender holds a promissory note executed by the Borrower in the <br />original principal amount of , dated <br />(the "Note ") which evidences a loan made by the Lender to the Borrower; and <br />WHEREAS, the rate of interest on the Note is a blended rate of interest as defined <br />in the Note and the Note provides for monthly payments of <br />(principal and interest) and one final installment of all unpaid principal, <br />together with accrued interest, as the terms of repayment; and <br />WHEREAS, the blended rate of interest provides for the payment of interest at the <br />rate of two percent (2.0 %) per annum on that portion of the principal amount of the loan <br />funded by Participant (as hereinafter detailed) at the rate of two percent (2.0 %) per annum, <br />and provides for the payment of interest on the balance of the loan at a rate not to exceed the <br />Lender's Prime Rate plus two percent (2.0 %) per annum, all in accordance with the Plan, <br />and the teuus and conditions herein comply in all respects with the other provisions of the <br />Plan; and <br />WHEREAS, Participant desires to acquire an interest in the Note as provided in the <br />Plan; and <br />WHEREAS, Lender desires to have Participant acquire certain interest in the Note <br />without recourse to Lender pursuant to the terms of this Participation Agreement; <br />NOW, THEREFORE, in consideration of the foregoing recitals and the mutual <br />promises herein contained, the parties hereto agree as follows: <br />-15- <br />