06/08/1998 Council Packet - Laserfiche WebLink

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3 3.02 Lendee's Match. The Lendee has an obligation under this loan agreement to share in the costs of the Loan Project by providing at least a fifty percent (50 %) cash or in -kind match. Accordingly, the Lendee agrees to provide $40,000 in matching funds (" Lendee's Match ") during the Project Activity Period. The Lendee agrees that there will be no reduction in the monetary amount of match unless there is at the same time a proportionate reduction in the Total Loan Amount. 3.03 Distribution of Loan Funds. Loan funds will be distributed by the Council according to the following schedule: a. Upon commencement of the Loan Project funded by this loan, the Council will distribute to the Lendee fifty percent (50 %) of the Total Loan Amount, referred to in this agreement as the "Initial Principal." b. Upon Council approval of the final reports required by paragraphs 5.01 and 5.02, the Council will distribute to the Lendee the final payment of the remainder of the Total Loan Amount, referred to in this agreement as the "Later Principal." No payment will be made which would cause the Total Loan Amount to exceed fifty (50 %) of projected total project costs. No payment will be made if the Lendee is not current in its reporting requirements under article V. Distribution of any funds or approval of any report is not to be construed as a Council waiver of any Lendee noncompliance with this agreement. 3.04 Loan Repayment. a. Repayment Terms. The Total Loan Amount (or such lesser amount as is actually loaned) will be repaid by Lendee in five equal annual installments, together with accrued interest at the rate of five percent per annum, in accordance with the schedule described in section 3.04(b). For loan amounts distributed prior to the Project Completion Date (as defined in section 6.01), interest will accrue from and after the Project Completion Date. For loan amounts distributed after the Project Completion Date, interest will accrue from and after the actual date the loan amount is distributed to Lendee. The principal portion of each installment payment will be considered a repayment of Initial Principal and Later Principal (as defined in section 3.03) in the proportion each amount bears to the Total Loan Amount. b. Loan Repayment Schedule. Attached as Exhibit C is Lendee's Preliminary Loan Repayment Schedule setting forth the schedule of loan repayments, along with accrued interest. This schedule assumes: 1) that the Initial Principal and Later Principal under section 3.03 will be equal; 2) that the Project Completion Date will be the same as the end of the Project Activity Period; and 3) that the second loan payment under section 3.03(b) will be made two months after the end of the Project Activity Period.