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14. <br /> <br />15. <br /> <br />I6. <br /> <br />17. <br /> <br />If the above conditions have been met, the applicant may proceed using their own funds or <br />interim financing from a lender. However, this is done at the applicant's and/or lender's <br />own risk until the total scope of work has been approved by the EDA and the loan has been <br />closed. RLF funds are dispersed upon project completion. <br /> <br />IN THE EVENT REQUESTS FOR RLF FUNDS EXCEED THE AMOUNT THAT IS <br />AVAILABLE, FIRST PRIORITY SHALL BE GIVEN TO INDUSTRIAL OR <br />MANUFACq~RING USES WITH EMPHASIS ON JOB CREATION OR RETENTION <br /> <br />Second priority shall be given to research, technology, or clinical uses. Third priority shall <br />be given to all other types of uses. <br /> <br />THE REVOLVING LOAN FUND MAY PROVIDE UP TO $ PER LOAN <br />PROVDED THAT THE LOAN RECIPIENT MEETS ELIGIBILITY REQUIREMENTS <br />AND THE FUND AMOUNT tS MATCHED OR EXCEEDED BY A PARTICIPATING <br />LENDER <br /> <br />Interest on 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 at least 50% of total loaned to applicant). Other loan terms shall be determined by the <br />participating lender, except that no repayment period shall exceed ~ years and loans by <br />the participating lender and the RLF must be co-terminus. If the loan recipient's business <br />is sold or liquidated, the balance of the loan is due and payable. <br /> <br />THE APPLICANT 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 /> <br />PARTICIPATING LENDERS SHALL PRESCRIBE LOAN APPLICATIONS UNDER <br />THIS PLAN TO DETERMINE WHETHER APPLICATIONS MEET THE PLAN'S <br />ELIGIBILITY REQUIREMENTS, AND SHALL ADDITIONALLY APPLY THEIR <br />ORDINARY STANDARDS FOR COMMERCIAL/INDUSTRIAL <br />IMPROVEMENT/DEVELOPMENT LOANS TO SUCH APPLICATIONS <br /> <br />Participating lenders then shall provisionally approve or reject the application, provided that <br />no application can be rejected for any unlawful reason. If an application is provisionally <br />approved, it shall be forwarded to the EDA for further consideration of the RLF portion of <br />the loan. <br /> <br />Participating lenders shall close the loans, obtaining properly executed security agreements, <br />mortgages, 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 provide to the loan recipient such disclosures as may be required by law. Monthly, <br />the participating lender shall remit to the Ramsey EDA, 15153 Nowthen Boulevard N.W., <br />Ramsey, Minnesota 55303, that portion of any loan recipient's monthly payment which <br />represents repayment of the RLF portion of the principal and interest on the loan. The EDA <br />shall not be a 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 in receiving the EDA's portion of the <br />principal and interest payments on any loan given and further agree to transmit that portion <br />to the EDA within fifteen (15) days of the receipt. Participating lenders shall provide <br />copies of 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 />