Agenda - Council - 09/28/2021 - Laserfiche WebLink

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(e) The Borrower warrants that it has fully complied with all applicable state and federal laws pertaining to its business and will continue to comply throughout the terms of this Agreement. If at any time Borrower receives notice of noncompliance from any governmental entity, the Borrower agrees to take any necessary action to comply with the state or federal law in question. (f) The Borrower warrants that it will not create, permit to be created, or allow to exist any liens, charges, or encumbrances prior to the obligation created by this Loan Agreement, except as otherwise authorized in writing by the City. (g) The Borrower has read and understands the SAC-WAC Loan Fund Policy (the "Policy"), including but not limited to all eligibility requirements of receiving a loan from the Fund, and represents and warrants that it is an Eligible Business, and not engaged in Ineligible Activities, and is seeking the Loan and shall use the proceeds thereof for Eligible Expenditures, all as defined and in accordance with the Policy, which is fully incorporated herein by reference. 5. Event of Default by the Borrower. The following shall be Events of Default under this Agreement: (a) the Borrower fails to pay any principal or interest on the Loan when due; (b) any false representation or warranty made by the Borrower herein or in any document, instrument, or certificate given in connection with this Agreement or the Loan; (c) the Borrower fails to pay its debts as they become due, makes an assignment for the benefit of its creditors, admits in writing its inability to pay its debts as they become due, files a petition under any chapter of the Federal Bankruptcy Code or any similar law, state or federal, now or hereafter existing, becomes "insolvent" as that term is generally defined under the Federal Bankruptcy Code, files an answer admitting insolvency or inability to pay its debts as they become due in any involuntary bankruptcy case commenced against it, or fails to obtain a dismissal of such case within sixty (60) days after its commencement or convert the case from one chapter of the Federal Bankruptcy Code to another chapter, or be the subject of an order for relief in such bankruptcy case, or be adjudged a bankrupt or insolvent, or has a custodian, trustee, or receiver appointed for, or has any court take jurisdiction of its property, or any part thereof, in any proceeding for the purpose of reorganization, arrangement, dissolution, or liquidation, and such custodian, trustee, or receiver is not discharged, or such jurisdiction is not relinquished, vacated, or stayed within sixty (60) days of the appointment; (d) any breach or failure of the Borrower to perform any other term or condition of this Agreement not specifically described as an Event of Default in this Agreement and such breach or failure continues for a period of thirty (30) days after the City has given written notice to the Borrower specifying such default or breach, unless the City agrees in writing to an extension of such time prior to its expiration; provided, however, if the failure stated in the notice cannot be corrected within the applicable period, the City will not unreasonably withhold its consent to an extension of such time if corrective action is 3 12603643v1