PROJC02405 - Laserfiche WebLink

Home Browse Search

Pledge of Property Provisions herein, and d. To make annual payments in accordance with the promissory note, and e. To make annual deposits to a debt service reserve fund in accordance with the Pledge of Property Provisions herein, and f. To execute a deed of trust to convey a security interest to the SraTE in the property described in the Collateral Provisions herein, and g. To execute a Security Agreement and an Assignment of Deposit Account as Security to secure the revenues pledged herein in accordance with the Pledge of Revenue Provisions of this contract. Said resolutions are attached hereto as Appendix 1 and incorporated herein. 8. Attorney's Opinion Letter. Prior to the execution of this contract by the STATE, the BoRROwER shall submit to the STaTE a letter from its attorney stating that it is the attorney's opinion that the person signing for the BoRROwER was duly elected or appointed and has authority to sign such documents on behalf of the BoRROwER and to bind the BoRROwER; that the BORROWER's shareholders and board of directors have validly adopted resolutions approving this contra~t; that there are no provisions in the BORROWER's articles of incorporation or by-laws or any state or local law that prevent this contract from binding the BORROWER; and that the contract will be valid and binding against the BoRROwER if entered into by the STArE. 9. Promissory Note Provisions. The Promissory Note setting forth the terms of repayment and evidencing this debt in the amount of $230,000 at the interest rate of 3.75% per annum for a term of thirty years is attached as Appendix 2 and incorporated herein. a. Revision Of Promissory Note. In the event the Borrower does not use all of the loan funds for construction of the PROJECT, the Promissory Note may be adjusted in accordance with the Changes Provisions of this contract. b. Interest During Construction. As the loan funds are disbursed by the STaTE to the BoRROwER during construction, interest shall accrue at the rate of 3.75% per annum. The amount of the interest accrued during constnaction shall be calculated by the STaTE and the BoRROwER shall repay that amount to the STaTE either within ten (10) days after the date the STaTE determines that the PRO~~cT has been substantially completed, or, at the STATE's discretion, the amount shall be deducted from the final disbursement of loan fU~dS th8t the STATE IYIBkeS t0 the BORROWER. 10. Changes. The STaTE and the BoRROwER may decrease the amount of the loan under this contract or extend the time for completion of the PRO~ECT through a REVtsioN LETTER, approved by the State Controller or his designee, in the form attached hereto as Appendix 3. The REVisiotv LETrER shall not be valid until approved by the State Controller or such assistant as he may designate. Upon proper execution and approval, the R~visiorv LErrER shall become an amendment to this contract and, except for the Special Provisions of the Excelsior Irrigating Company Page 5 of 15 Loan Contract