Laserfiche WebLink
7. That the Bank shall then approve or reject the loan based on the program requirements, <br /> provided that no application can be rejected for any unlawful reason; provided further that <br /> the Authority shall not have the authority to approve or reject a loan on behalf of the Bank. <br /> 8. That if the Bank approves the loan, the Authority shall tender its check drawn on the 2% <br /> RLF for half of the principal amount of the loan, up to a maximum of$40,000, at the time <br /> of the loan closing. <br /> 9. That for each loan, the Bank shall have the loan recipient execute a mortgage or promissory <br /> note, or both, to the Bank. The Authority's interest in the mortgage or promissory note or <br /> both shall be subordinate to that of the Bank. The mortgage or promissory note, or both <br /> shall, along with other documents, state the interest rate and schedule for payment. <br /> 10. That for each loan entered into under the Agreement, the loan recipient shall be required to <br /> file a "Loan Application Form" and to sign an "Owner Agreement" which has been given <br /> to the bank as part of the revolving loan/grant program document. <br /> 11. That, in conjunction with the Authority's tendering of it's check for half the loan, the Bank <br /> shall execute a "Certificate of Participation" for each loan whereby the Bank sells one-half <br /> of the loan to the Authority 2% RLF at the rate of two percent per annum. A blank copy of <br /> said "Certificate of Participation" has been given to the bank as part of the revolving <br /> loan/grant program document. <br /> 12. That the schedule for loan payments by the recipients shall be determined by the Bank and <br /> said payments shall be made to the Bank on a monthly basis in accordance with the <br /> mortgage or promissory note or both. <br /> 13. That the Bank shall provide to the loan recipient a truth-in-lending disclosure when <br /> applicable. <br /> 14. That the Bank shall remit loan payments to the Authority on a monthly basis. On a <br /> monthly basis, the Bank shall pay to the Authority that portion of the loan recipient's <br /> payments for the prior month, which represents a two percent payment of interest on the <br /> outstanding principal balance with the Authority's share of the loan, and that portion of the <br /> monthly payment which represents a repayment of the principal amount of the loan. <br /> 15. That this Agreement shall expire when the 2% RLF monies available to the Authority are <br /> exhausted provided, however, either party may terminate this Agreement at any time for <br /> any reason by written notice to the other of it's intention to do so. Such termination shall <br /> be effective upon the effective date set forth in such notice, or, if no date is set forth, upon <br /> giving of the notice. If this Agreement is terminated in accordance with the procedures set <br /> forth above, said termination shall not affect the rights and obligations of the Bank and the <br /> Authority with respect to loans outstanding on the effective date of such termination. <br /> 16. That the Bank will withhold 10 percent of the loan until it has received a certificate of <br /> completion from the City of White Bear Lake for the improvements financed by the loan. <br /> ii <br />