Agenda - Council - 12/15/1998 - Laserfiche WebLink

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I ,I :1 I I I I I I I I I I I I I I I I ARTICLE 3 ~IF LOAN TERMS AND CONDITIONS Section 3.1. Basic Loan Terms. The principle amount of the Loan shall not exceed $200,000. The loan shall bear interest at a rate equal to the prime rate as publicly announced from time to time by Norwest Bank, N.A., which rate shall change as and when such prime rate shall change. The Loan terms may not be modified without prior written approval from the Grantor Agency. The full Loan amount shall be used for the purchase of the Equipment. The term of the Loan shall be as set forth in Section 5.4 of this Agreement. Section 3.2. Prepayment. Prepayment of the Loan may occur at any time during the Loan without penalty. Section 3~3. Assignment. If, prior to the Forgiveness Date the Developer sells, conveys, h'ansfers, further mortgages or encumbers or disposes of the Development Property, or any part thereof, or any interest therein, except to a wholly- owned subsidiary of Developer upon the prior written approval of the Grantor Agency, or agrees so to do, the Developer shall immediately repay all amounts then outstanding on the Loan. This shall be in addition to any other remedies at law or equity available to the City. Section 3.4. Termination. This agreement shah automatically terminate without any notice to Developer (1) if the Loan proceeds have not been disbursed to the Developer prior to March 31, 1999; or (2) if a petition is filed by or against the Developer under the U.S. Bankruptcy Code, or if voluntary, such a petition is not dismissed within sixty (60) business days following such petition. Section 3.5. Promissory. Note. The Developer shall execute a promissory note in substantially the form set forth at Exhibit C. ARTICLE 4 DEFAULT AND COLLATERAL Section 4.1. Default. The Developer shall be in default under this agreement upon the happening of any of the following events: (a) nonpayment, when due, of any amount payable on the Loan or failure to observe or perform any term of this Agreement; provided such nonpayment is not remedied within ten (10) business days after written notice thereof by either the Developer or the City; (b) if Developer is in breach of any material respect of any obligation or agreement of the Developer under this agreement, provided Developer remains in breach in any material respect for thirty (30) business days after written notice thereof to the Developer by the City; provided, however, that ff such breach shall reasonably be incapable of being cured within such thirty (30) business days after notice, an~l:jf Developer commences and diligently prosecutes the appropriate steps to cure such breach, no default shall 'exist so long as Developer is proceeding to cure such breach; (c) if any material covenant, warranty or representation of Developer shall prove to be untrue in any material respect, provided such covenant, warranty or representation of Developer remains untrue in any material respect for thirty (30) business days after written notice thereof to the Developer by the City; provided, however, that if such untruth shall reasonably be incapable of being corrected withkn, such thirty (30) business days after notice, and if Developer commences and diligently prosecutes the appropriate steps to correct such untruth, no default shall exist so long as Developer is so proceeding to correct such untruth; 4