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<br />E. Equity participation. There shall be a minimum 10% owner equity investment of total <br />project costs required of all applicants. <br /> <br />F. Collateral requirements. All loan agreements will be secured by one or more of the <br />following; promissory note, mortgage, or security agreement as required by the City; and <br /> <br />1. The revolving fund may take a subordinate position to the primary lender on the <br />. assets financed; and <br /> <br />2. Surety deposits shall be required for certain construction contracts as set forth in <br />Minnesota Statutes 290.9705. <br /> <br />G. Letters of Commitment. Letters of commitment from all funding sources must be <br />submitted for the application to be deemed complete. <br /> <br />H. Personal guaranty. Personal guarantees of persons with ownership interest of20% or <br />greater are required. Personal guarantees of persons with ownership interest between 5% <br />to 19% may be required by the City but are discretionary. <br /> <br />1. Loan repayments. Loan payments must begin within one month of receipt of the <br />Revolving Loan. The City of Ramsey may make exceptions to this rule on a case-by-case <br />basis. <br /> <br />J. Loan prepayment. Prepayments are permitted where the Borrower makes the EDA whole <br />for any losses or costs associated with the prepayment. <br /> <br />K. Notice of award or denial. Applicants will be notified in writing not more than fourteen <br />(14) days after fmal action has been taken on their revolving loan fund application by the <br />City. <br /> <br />L. Loan closing documents. The City will close the loan within sixty (60) days of final City <br />approval of the loan application. At that time, the City will deliver to the Borrower all <br />closing documents and a finafdebt service schedule. In exchange, the Borrower will <br />deliver to the City its loan obligation which is defined as a bond, note, or other evidence <br />of obligation issued by the Borrower to evidence it indebtedness under the loan <br />agreement. <br /> <br />M. Post closing amendments and modifications. Requests for amendments and modifications <br />following award, closing or disbursement of funds to the underwriting of the original <br />request require City approval and shall be presented at the next scheduled meeting of the <br />EDA. <br /> <br />N. Loan declination. The City will not make a loan if it determines the loan amount would <br /> <br />26 <br />