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14. <br /> <br />15. <br /> <br />If the~ab~e conditions have been met, the applicant may proceed using their own funds or <br />interi~ fiaancing from a lender. However, this is done at the applicant's and/or lender's <br />own ~sk ~ntil the total scope of work has been approved by the EDA and the loan has be~n <br />close~. RLF funds are dispersed upon project completion. <br />IN TI~ ~VENT REQUESTS FOR RLF FUNDS EXCEED THE AMOUNT THAT IS <br />AVAILABLE, FIRST PRIORITY SHALL BE GIVEN TO INDUSTRIAL OR <br />MA ~]~IF~C'I'URING USES WITH EMPHASIS ON JOB CREATION OR RETENTION <br /> <br />SeconO p~ority shall be given to research, technology, or clinical uses. Third priority shall <br />be giV~en tO all other types of uses. <br /> <br />THE REVOLVING LOAN FUND MAY PROVIDE UP TO $ PER LOAN <br />PROV~IDR. D THAT THE LOAN RECIPIENT MEETS ELIGIBILITY REQUIREMENTS <br />^ND FUND AMOUNT IS TCHED OR EXCEEDED BY A PARTICIPATING <br /> <br />IntereSt o~ the portion of the loan borrowed from the fund shall be at an annual rate of <br />~% of prime rate on the fixed rate loan portion borrowed from the participating lender <br />(to be ~t 1~ .st 50% of total loaned to applicant). Other loan terms shall be determined by the <br />parti¢ibafi g lender, except that no repayment period shall exceed ~. years a~d loans by <br />the pa~icl ating lender and the RLF must be co-terminus. If the loan recipient s business <br />is sOld[or i ~luidated, the balance of the loan is due and payable. <br /> <br />16. <br /> <br />17. <br /> <br />THE APPI,ICANT IS REQUIRED TO PAY AN ORIGINATION FEE AT THE TIME OF <br />CLOSING IN THE AMOUNT OF 1% FOR THE USE OF THE RLF LOAN FUNDS <br /> <br />It shall be the responsibility of the lender to collect this fee at closing and remit it to the <br />EDA. ~ <br />PART[clEATING LENDERS SHALL PRESCRIBE LOAN APPLICATIONS UNDER <br />THIS pLaN TO DETERMINE WHETHER APPLICATIONS MEET THE PLAN'S <br />ELIGI[3ILITY REQUIREMENTS, AND SHALL ADDITIONALLY APPLY THEIR <br />ORD~NA[RY STANDARDS FOR COMMERCIAL/INDUSTRIAL <br />IMPR¢ VE.MENT/DEVELOPMENT LOANS TO SUCH APPLICATIONS <br /> <br />Parti¢i ialin.g lenders then shall provisionally approve or reject the application, provided that <br />no ap'. ii¢~/~on can be rejected for any unlawful reason. If an application is provisionally <br />approv'~d, it shall be forwarded to the EDA for further consideration of the RLF portion of <br />theloa:~. ~ <br /> <br />Partieil~ating lenders shall close the loans, obtaining properly executed security agreements, <br />mortgagesl promissory notes, corporate borrowing authorization, as appropriate from loan <br />recipients.: ~At the closing, each loan recipient shall certify that such applicant has read, <br />understandS, and will comply with the requirements of this Plan. The participating lender <br />shall p~ovide to the loan recipient such disclosures as may be required by law. Monthly, <br />the p~iciP~tfing lender shall remit to the Ramsey EDA, 15153 Nowthen Boulevard N.W., <br />Ramsey, M!nnesota 55303, that pornon of any loan remp~ent s monthly payment whmh <br />represe-~ts repayment of the RLF portion of the principal and interest on the loan. The EDA <br />shall n6! be h party to any of the loan documents but participating lenders, in agreeing to the <br />terms of the Plan, agree to act as the EDA s agent m recmmng the EDA s port~on of the <br />principal anal interest payments on any loan given and further a~ee to transmit that portion <br />to the II~DAi within fifteen (15) days of the receipt. Participating lenders shall provide <br />copies 6f all! loan documents to the EDA along with a participation agreement showing the <br /> <br /> EDA Financing <br /> Page 6 of 7 <br /> <br /> <br />