Agenda - Council - 01/10/2006 - Laserfiche WebLink

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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 six (6) 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 the Recipient are audited, and may be audited and/or inspected on the Recipient's promises or otherwise by individuals or organizations designated and authorized by the Council at any time, following reasonable notification, during the loan period, and for a period of six (6) years following 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 Annual Report. The Recipient agrees to submit, on or before June 30 of each year during which this agreement is in effect, an annual report on the status of the loan, in a form to be determined by the Council. III. INCOME FROM PURCHASED PROPERTY 3.01 Net Rents Defined. For purposes of this agreement, "net rents" means the total gross rent received by the Recipient from any and all tenants or users of the property, less the Recipient's actual costs for necessary maintenance, repairs, taxes, insurance, 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 money received as a result of the Recipient's ownership of the property. For any given payment to the Council, the Recipient may estimate the actual costs to be deducted from gross rent. 3.03 Adjustment for Actual Costs. Twelve (12) ~nonths from the commencement of receipt of any rant by the Recipient from any property acquired with loan proceeds, the Recipient shall provide, in a form acceptable to the Council, documentation for all actual costs for necessary maintenance, repairs, taxes, insurance, and operating expenses, and attorneys' 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. -227-