06/08/1998 Council Packet - Laserfiche WebLink

Home Search

2 1.02 Material Representations. The Lendee agrees that all representations contained in its application for loan assistance are material representations of fact upon which the Council relied in awarding this loan and are incorporated in this agreement by reference. 1.03 Lendee Certification. Lendee certifies that the loan funds to be distributed pursuant to this agreement will be applied to the purposes stated in this agreement and that the Loan Project is cost effective. 1.04 Governing Body Resolution. Lendee will provide the Council with a copy of a resolution by its governing body which authorizes the Lendee to enter into this agreement. IL AUTHORIZED USE OF LOAN PROCEEDS AND MATCHING FUNDS 2.01 Authorized Uses. The Lendee is authorized to use the loan funds only in payment of the line item costs specified in Exhibit B, which is attached to and incorporated in this agreement. No other use of loan funds is permitted. Loan and matching funds may be used only for costs directly associated with Loan Project activities. 2.02 Unauthorized Uses of Loan Proceeds. Loan funds cannot be used to purchase land, buildings, or other interests in real property, or to pay overhead or indirect costs, legal fees, or permit, license, or other authorization fees, unless specifically approved in advance by the Council. 2.03 Reversion of Unexpended Funds. All funds loaned by the Council under this agreement that have not been expended for the Loan Project during the Project Activity Period (as defined in section 6.01) will be repaid to the Council. 2.04 Project Equipment and Supplies. Loan and matching funds may be used to purchase or lease equipment, machinery, supplies, or other personal property directly necessary to conduct the Loan Project. The Lendee will comply with the personal property management requirements described in paragraph 7.10 of this agreement. III. LOAN AMOUNT, DISTRIBUTION, AND REPAYMENT 3.01 Total Loan Amount. The Council will pay to the Lendee a Total Loan Amount of $40,000. Provided, however, that in no event will the Council's obligation under this agreement exceed the lesser of: a. the Total Loan Amount of $40,000; or, b. fifty percent (50 %) of total Loan Project expenditures. The Council will bear no responsibility for cost overruns which may be incurred by the Lendee in performance of the Loan Project.