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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 $20,000, 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 to <br />the bank as part of the revolving loan/grant program document. <br />11. That, in conjunction with the Authority's tendering of its 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 mortgage <br />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 monthly <br />basis, the Bank shall pay to the Authority that portion of the loan recipient's payments for <br />the prior month, which represents a two percent payment of interest on the outstanding <br />principal balance with the Authority's share of the loan, and that portion of the monthly <br />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 any <br />reason by written notice to the other of its intention to do so. Such termination shall be <br />effective upon the effective date set forth in such notice, or, if no date is set forth, upon giving <br />of the notice. If this Agreement is terminated in accordance with the procedures set forth <br />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 retain 10 percent of the loan until it has received a certificate of <br />completion from the CVEDA for the improvements financed by the loan. <br />14 <br />