Laserfiche WebLink
of 20 years is attached as Appendix 2 and incorporated herein. <br /> a. Interest During Construction. As the loan funds are disburs y, h STATE to the <br /> BORROWER during construction, interest shall accrue at the rate o e TE shall <br /> calculate the amount of the interest accrued during const ction and - • R shall <br /> repay that amount to the STATE either within ten (10) days of :t- the STATE •etermines <br /> that the PROJECT has been substantially completed, or, at - 's r' .1- id interest <br /> shall be deducted from the final disbursement of loan funds h t• t e the <br /> BORROWER. <br /> b. Final loan amount. In the event that the final loan amount is at least 90% of the <br /> AUTHORIZED LOAN AMOUNT, the STATE shall apply the remaining loan funds to prepayment of <br /> the loan, which will result in the annual loan payment remaining the same, and the time for <br /> repayment of the loan will be reduced. If the final loan amount is less than 90% of the <br /> AUTHORIZED LOAN AMOUNT, the STATE may apply those funds to prepayment of the loan with <br /> the BORROWER'S consent, or the State and the BORROWER shall execute an amendment <br /> that will establish the final loan amount and amend or replace the loan documents that <br /> reflect the final loan amount, including the Promissory Note, Security Agreement, <br /> Assignment of Deposit Account as Security, and Assignment of Certificate of Deposit. <br /> 10. Warranties. <br /> a. The BORROWER warrants that, by acceptance of the loan money pursuant to the terms of this <br /> contract and by the BORROWER'S representation herein, the BORROWER shall be estopped <br /> from asserting for any reason that it is not authorized or obligated to repay the loan money to <br /> the STATE as required by this contract. <br /> b. The BORROWER warrants that it has full power and authority to enter into this contract. The <br /> execution and delivery of this contract and the performance and observation of its terms, <br /> conditions and obligations have been duly authorized by all necessary actions of the <br /> BORROWER. <br /> c. The BORROWER warrants that it has not employed or retained any company or person, other <br /> than a bona fide employee working solely for the BORROWER, to solicit or secure this contract <br /> and has not paid or agreed to pay any person, company, corporation, individual, or firm, other <br /> than a bona fide employee, any fee, commission, percentage, gift, or other consideration <br /> contingent upon or resulting from the award or the making of this contract. <br /> d. The BORROWER warrants that the property identified in the Collateral Provisions of this <br /> contract is not encumbered by any deeds of trust to or liens of any party or in any other <br /> manner. <br /> 11. Collateral. Part of the security provided for this loan, as evidenced by the executed Assignment <br /> of Certificate of Deposit attached as Appendix 3 and incorporated herein, shall be an undivided <br /> one hundred percent (100%) interest in a certificate of deposit account established by the <br /> BORROWER in the amount of one annual loan payment ($3,022.41), hereinafter referred to as CD <br /> ACCOUNT. The STATE shall use the funds contained in the CD ACCOUNT for the purpose of paying <br /> principal and interest due under this contract not otherwise paid by the BORROWER. Any amount <br /> withdrawn by the STATE for this purpose shall be replenished by the BORROWER within sixty days <br /> after such withdrawal. The STATE shall not disburse any loan funds under this contract until the <br /> BORROWER has established the CD ACCOUNT. <br /> 12. Pledge Of Property. The BORROWER hereby irrevocably pledges to the STATE for purposes of <br /> Plumb and Dailey Ditch Company Page 5 of 12 Loan Contract <br />