Agenda - Economic Development Authority - 12/08/2004

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Collateral requirements. All loan agreements will be secured by one or more of the following; promissory note, mortgage, or security agreement as required by the City; and The revolving fund may take a subordinate position to the primary lender on the assets financed; and Surety deposits shall be required for certain construction contracts as set forth in Minnesota Statutes 290.9705. Letters of Commitment. Letters of commitment from all funding sources must be submitted for the application to be deemed complete. Personal guaranty. Personal guarantees of persons with ownership interest of 20% or greater are required. Personal guarantees of persons with ownership interest between 5% to 19% may be required by the City but are discretionary. Loan repayments. Repayment of the loan must begin within one month of receipt of the Revolving Loan. The City of Ramsey may make. exceptions to this rule on a case by case basis. Loan prepayment. Prepayments are permitted where the Borrower makes the EDA whole for any losses or costs associated with the prepayment. Notice of award or denial. Applicants will be notified in writing not more than fourteen (14) days after final action has been taken on their revolving loan fund application by the City. Loan closing documents. The City will close the loan within sixty (60) days of final City approval of the loan application. At that time, the City will deliver to the Borrower all closing documents and a final debt service schedule. In exchange, the Borrower will deliver to the City its loan obligation which is defined as a bond, note, or other evidence of obligation issued by the Borrower to evidence it indebtedness under the loan agreement.