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15. 16. 17. If the ~tb~e conditions have been met, the applicant may proceed using their own funds or interi~ flr~ancing from a lender. However, this is done at the applicant's and/or lender's own ~k ~[ntil the total scope of work has been approved by the EDA and the loan has been elos~ ltI~ F funds are dispersed upon project completion. IN WNT REQUESTS FOR RLF NDS EXCEED AMOUNT iS AvA~,LE, FIRST PRIORITY SHALL BE GIVEN TO INDUSTRIAL OR MAN ~-:IkrF~CTURING USES WITH EMPHASIS ON JOB CREATION OR RETENTION Seeo, n~ ~pfiOrity shall be given to research, technology, or clinical uses. Third priority shall be giV{~n ~ all other types of uses. THE t~. E¥.0LVING LOAN FUND MAY PROVIDE UP TO $ PER LOAN PRO .~Ep THAT THE LOAN RECLP~ENT MEETS ELIGIBILITY REQUIREMENTS AND ~ FUND AMOUNT IS MATCHED OR EXCEEDED BY A PARTICIPATING IntereSt oni the portion of the loan borrowed from the fund shall be at an annual rate of ~ ofiprime rate on the fixed rate loan portion borrowed from the participating lender (to be. it l~st 50% of total loanext to applicant). Other loan terms shall b~ determined by the parti¢i )ati~g lender, except that no repayment period shall exceed A_ years and loans by the pa~ ti¢i~ating lender and the RLF must be co-terminus. If the loan recipient's business is sold ~)r liquidated, the balance of the loan is due and payable. THE/~PPi~ICANT IS REQUIRED TO PAY AN ORIGINATION FEE AT THE TIME OF CLOSe0 ~N THE AMOUNT OF 1% FOR THE USE OF THE RLF LOAN FUNDS It shal! b~. ihe responsibility of the lender to collect this fee at closing and remit it to the PARTiCIPaTING LENDERS SHALL PRESCRIBE LOAN APPLICATIONS UNDER THIS PL~ TO DETERMIN~ WHETHER APPLICATIONS MEET THE PLAN'S ELI~I~II~I~TY REQUIREMENTS, AND SHALL ADDITIONALLY APPLY THEIR ORDINARY STANDARDS FOR COMMERCIAL/INDUSTRIAL . . SUCH IMPROVEMENT/DEVELOPMENT LOANS TO APPLICATIONS Parti¢ip~athgg lenders then shall provisionally approve or reject the application, provided that no app§ca~on can be rejected for any unlawful reason. If an application is provisionally approved, i~ shall be forwarded to the EDA for further consideration of the RLF portion of the loa~. ~ Partioip~tinglenders shall close the loans, obtaining properly executed security agreements, mort§~,~¢si p?missory notes, corporate borrowing authorization, as appropriate from loan recipi'e~ts. ! ~t the closing, each loan recipient shall certify that such applicant has read, under~nds~ and will comply with the requirements of this Plan. The participating lender shall P~vid~ to the loan recipient such disclosures as may be required by law. Monthly, the pa~cil~ting lender shall remit to the Ramsey EDA, 15153 Nowthen Boulevard N.W., RamseS, M~nnesota 55303, that portion of any loan recipient's monthly payment which represents ~paymcnt of the RLF portion of the principal and interest on the loan. The EDA shallnoi ~ ,~ party to any of the loan documents but participating lenders, in agreeing to the term$'o~ th~ Plan, agree to act as the EDA'$ agent in receiving the EDA's portion of the princip~ ag~l interest payments on any loan given and further agree to ~'ansmit that portion to the ~DAiwithin fifteen (15) days of the receipt. Participating lenders shall provide copie~ ~ ali!loan documents to the EDA along with a participation agreement showing the , EDA Financing ! Page 6 of ?