Agenda - Economic Development Authority - 02/21/2001

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Equity participation. There shall be a minimum t0% equity investment of torn/project costa required of ali applicants. 'Co[lateral r~quirementa. All loan agr~'emen~ will be secured by one or more of the follov~ng; promissory note, mortgage, or secur/ty agreement as required by the City; and The revolving fund may take a subordinate position to the primary lender on the ~ssets financed; and Ho 2. Surety deposits shaft be required for cer~n construction contracts as set forth in Minnesota Statutes 290.9705. Letters of Commitment. Letters of cornmitment'f~ommi1; fu~ading sources must be submitted for the application to be deemed complete. Personal g~mranty, perSonal:gi/k.rantd:~.} :OgperSO~:~th owr~rsk/p interest of 20% or greater are req~ed. Pe~%~~~e~!~f pe~:°ns w/th ownership interest between 5% to 19% maY:;:b~: ~equire~ by:the- City'b~.(ar~¢d/scre:donary. Loan repa~:entsl}iRepaymei~t. °ft~i-itoan must begin within one month of receipt of the P,.evolvinl Loan. The City of Ra~rnsey may make exceptions to this rule on a case by case Loan prepayment. Prepayments are permitted where the Borrower makes the EDA whole for any losses or costs associated with the prepayment. Notice of award or den/al: Applicants will be notified in writing not more ti.an fourteen (14) days after gna/action has been taken on their revolving loan fund application by the City. Lo Loan closing documenta. The City will close the loan within sixty (60) days of gna/City approval of the'loan application. At that time, the City will deliver to the Borrower all closing documents and a final debt service schedule. In exchange, ~e Borrower will . deliver to the City its loan obligation which is defined-as a bond, note, or other evidence of obligation issued by the Borrower to evidence it indebteciness under the loan a~eement. l0