2019-06-19 EDA Packet - Laserfiche WebLink

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8.That if the Bank approves the loan, the Authority shall tender its check drawn on the 2% RLF for half of the principal amount of the loan, up to a maximum of $20,000, at the time of the loan closing. 9. That for each loan, the Bank shall have the loan recipient execute a mortgage or promissory note, or both, to the Bank. The AuthorityÓs interest in the mortgage or promissory note or both shall be subordinate to that of the Bank. The mortgage or promissory note, or both shall, along with other documents, state the interest rate and schedule for payment. 10. That for each loan entered into under the Agreement, the loan recipient shall be required to file a ÐLoan Application FormÑ and to sign an ÐOwner AgreementÑ which has been given to the bank as part of the revolving loan/grant program document. 11. That, in conjunction with the AuthorityÓs tendering of its check for half the loan, the Bank shall execute a ÐCertificate of ParticipationÑ for each loan whereby the Bank sells one-half of the loan to the Authority 2% RLF at the rate of two percent per annum. A blank copy of said ÐCertificate of ParticipationÑ has been given to the bank as part of the revolving loan/grant program document. 12. That the schedule for loan payments by the recipients shall be determined by the Bank and said payments shall be made to the Bank on a monthly basis in accordance with the mortgage or promissory note or both. 13. That the Bank shall provide to the loan recipient a truth-in-lending disclosure when applicable. 14. That the Bank shall remit loan payments to the Authority on a monthly basis. On a monthly basis, the Bank shall pay to the Authority that portion of the loan recipientÓs payments for the prior month, which represents a two percent payment of interest on the outstanding principal balance with the AuthorityÓs share of the loan, and that portion of the monthly payment which represents a repayment of the principal amount of the loan. 15. That this Agreement shall expire when the 2% RLF monies available to the Authority are exhausted provided, however, either party may terminate this Agreement at any time for any reason by written notice to the other of its intention to do so. Such termination shall be effective upon the effective date set forth in such notice, or, if no date is set forth, upon giving of the notice. If this Agreement is terminated in accordance with the procedures set forth above, said termination shall not affect the rights and obligations of the Bank and the Authority with respect to loans outstanding on the effective date of such termination. 16. That the Bank will retain 10 percent of the loan until it has received a certificate of completion from the City of Centerville for the improvements financed by the loan. 14 19