06/08/1998 Council Packet - Laserfiche WebLink

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7 6.03 Loan Forgiveness Provisions. The Council will review the Certification (and other documentation as required by Section 6.02), submitted by Lendee prior to each Annual Installment Date, to determine its adequacy. The Council may request, and the Lendee will provide, additional information or documentation in order to carry out such review. a. Positive Determination. It in the Council's sole discretion, it determines that the Loan Project continues to be successful, that is, that the inflow and infiltration removed pursuant to the Loan Project have not returned to the system in significant quantities during the twelve month period prior to the said Certification, then the Council may forgive the Lendee's loan installment principal payment, along with accrued interest on the forgiven principal, for that Annual Installment Date. The Council will promptly notify Lendee if it qualifies for such loan forgiveness. b. Negative Determination. If, in the Council's sole discretion, it determines that the Loan Project does not continue to be successful, that is, that the inflow and infiltration removed pursuant to the Loan Project have returned to the system in significant quantities during the twelve month period prior to the said Certification, then the Council will notify the Lendee that the installment payment, along with accrued interest, for that Annual Installment Date will not be forgiven and is due and owing in accordance with the schedule set forth in section 3.04. In such case, Lendee will have the following options: 1. Lendee may make a request, in writing, to the Council for an extension period of up to three months from the Annual Installment Date, for payment of the installment payment, for the purpose of carrying out additional work at its own expense ifitimisi-tanktid5tihmeouncirs requirements. If at the end of such extension period the Council determines that such work does satisfy its requirements, it will notify the Lendee of that fact and that the installment principal payment, along with any accrued interest on the forgiven principal, for said Annual Installment Date is forgiven. If at the end of such extension period the Council determines that such work does not satisfy its requirements, it will notify the Lendee of that fact and the installment principal payment, along with accrued interest (including interest for the extension period), for the said Annual Installment Date will become due and owing upon receipt of said notice. 2. Alternatively, Lendee may determine that it does not desire to pursue additional work because such work would not be productive or otherwise not in Lendee's interest. In such case, Lendee will make the installment payment, along with accrued interest, on the said Annual Installment Date, and will thereafter repay the Loan in accordance with the schedule set forth in Section 3.04. If a Loan Project fails to obtain loan forgiveness for any period in accordance with this section, all future installment payments will be made in accordance with Section 3.04 and Lendee will not be eligible for any future loan forgiveness.