Agenda - Council - 01/11/2005 - Laserfiche WebLink

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il. ACCOIINTING, AUDIT, AND RECORDS REQUIREMENTS 2.01 Separate Account. The Recipient agrees to establish and maintain a separate account for the loan and to maintain accurate and complete .records and accounts relating to the receipt and expenditure of all loan funds. Such accounts and records shall be kept and maintained for a period of at least three (3) years following discharge of the loan. 2.02 Audit. The above accounts and records of the Recipient shall be audited in the same manner as all other accounts and records of thb Rec{pient are audited, and may be audited and/or inspected on the Rccipicnt's premises or otherwise by individUals or organizations designated and authorized by the Council at any time, lbllowing reasonable notification, during the loan period, and for a period of six (6) years tbllowing discharge of the loan. 2.03 Acquisition Report. The Recipient agrees that upon completion of any acquisition, the Recipient will submit to the Council an acquisition report, in a format to be determined by the Council, summarizing the acquisition costs of the property, including all eligible expenses and moving costs. 2.04 Ammal Report. The Recipient agrees to submit, on or before June 30 of each year during which this agreement is in effect, an annual t~eport on the status of the loan, in a fo~zn to be determined by thc Council, ili. INCOME FROM PURCHASED PROPERTY 3.01 Net Rents Defined. For;purposes of this agreement, "net rems" means the total gross rent received by the Recipient from any and gll ten_ants or users of the property, less the Recipient's actual costs lbr necessary maintenance, repairs, taxes, insfirance, and operating expenses, and attorneys' fees associated with preparing or terminating any lease with respect to the property. 3.02 Transfer of Net Rents. The ReCipient agrees to transfer to the Council, within forty-five (45) days of receipt, all net rents or other mon. ey received as a result of the Recipient's ownership of the property. For any given payment to the Couneil,;the Recipient may estimate the actual costs to be deducted fi'om gross rent. 3.03 Adjustment for Actual Costs. ;Twelve (12) months from the commencement of receipt of any rent by the Recipient fi'om any property a.cquired with loan proceeds, the Recipient shall provide, in a t~orm acceptable to the Council, documentationifor all actual costs for necessary maintenance, repairs, taxes, insurance, and operating expenses, and attomdYs' fees with respect to the property. Upon verification and acceptance of the documentation by the Council, the Recipient shall pay to the Council the amount, if any, determined by the Council to be necessary to adjust the estimated deduction from gross rent to reflect the actual costs. IV. I,OAN DISCHARGE 4.01 Discharge Due to Conveyance to ltighway Authority. If any parcel purchased with the loan l'uncls is conveyed to a highway authority for construction ora highway, the Recipient shall repay to the Council, within thirty (30) days of receipt, the amount received from the highway authority for the parcel, acquisition costs and relocation expenses. Upon payment of the specified amount, the Council will discharge thc loan.