Agenda - Council - 03/24/2015 - Laserfiche WebLink

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to assure the proper application of Advances authorized pursuant hereto, including but not limited to, authorizing Advances directly to the Contractors and corresponding reductions in the amount of Advances to be made to any Contractor or Borrower hereunder. The foregoing notwithstanding, in no event shall the HRA be obligated to conduct any such verification or to so vary said procedures. (b) In the event that the HRA shall determine, in its reasonable judgment, that proper documentation to support a given Advance, as requiredby this Loan Agreement, has not been furnished, it may withhold authorization of all or such portion of such Advance as shall not be so supported by proper documentation, and shall promptly notify Borrower of the discrepancy in or omission of such documentation. Until such time as such discrepancy or omission is corrected to the satisfaction of the HRA, it may withhold such amount. (c) From and after the occurrence of an Event of Default, the HRA reserves the right to authorize Advances which are allocated to any of the designated items in the Construction Cost Statement for such other purposes or in such different proportions as the HRA may, in its reasonable discretion, deem necessary or advisable. Developer may not reallocate items of cost or change the Construction Cost Statement without the consent of the HRA. Section 4.6 Advances to Pay Fees and Costs of Issuance. In lieu of interest on Loan No. 1, the HRA is charging Borrower a $120,000.00 fee for the extension of Loan No. 1 to Borrower. The first Draw Request that Borrower submits to the HRA will be deemed to include a request that the HRA Advance $120,000.00 and will be deemed to direct the HRA to retain the $120,000.00 Advance in full payment of the fee described in this Section 4.6. As set forth in Section 8.6 of the Development Agreement, contemporaneously with the execution of this Loan Agreement and with the parties' execution of this Loan Agreement and Borrower's execution of Note No. 2, Borrower will be deemed to have authorized the HRA to and the HRA shall make an Advance to itself from the proceeds of Loan No. 2 in an amount equal to the "Costs of Issuance," as defined in the Development Agreement. The HRA's Advance to itself of an amount equal to the Costs of Issuance is not subject to the limitations on advances set forth in Section 4.8. Section 4.7 Interest on Loan No. 2. The unpaid principal amount of Advances of Loan No. 2 shall bear interest as set forth in Note No. 2. Section 4.8 Additional Limitations on Advances of the Proceeds of Loan No. 2. The HRA is not obligated to and will not Advance any proceeds of Loan No. 2 to Borrower before the later of the date thirty (30) days after the HRA conveys the Development Property to Developer, the date Developer commences construction of the Minimum Improvements or June 1, 2012. For purposes of this Section 4.8, the Developer is deemed to have Commenced Construction when Developer has (a) obtained all building permits from the City of Ramsey, Minnesota, necessary for the construction of the Minimum Improvements; and (b) commenced the construction of the footings and foundations for the Minimum Improvements, as defined in the Development Agreement. C-2-10 2695614v16