Laserfiche WebLink
5. Interest Prior to PROJECT Completion. As the loan funds are disbursed by the CWCB, to the <br /> BORROWER, interest shall accrue on the disbursed funds at the rate set by the CWCB for this <br /> loan. The CWCB shall calculate the amount of the interest that accrued prior to the PROJECT'S <br /> substantial completion (as determined by the CWCB) and notify the BORROWER of such <br /> amount. The BORROWER shall repay that amount to the CWCB either (i) within thirty (30) <br /> days from the date of notification from the CWCB, (a) at the CWCB's discretion, said interest <br /> shall be deducted from the final disbursement of loan funds that the CWCB makes to the <br /> BORROWER, or (3) at the CWCB's discretion, said interest shall be rolled into the TOTAL LOAN <br /> AMOUNT due. <br /> 6. Return of Unused Loan Funds. Any loan funds disbursed but not expended for the PROJECT <br /> in accordance with the terms of THIS CONTRACT shall be remitted to the CWCB within thirty <br /> (30) calendar days from notification from the CWCB of either (i) completion of the PROJECT or <br /> (a) determination by the CWCB that the PROJECT will not be completed. Any such loan funds <br /> so remitted to CWCB shall be applied to the principal payment of amounts due on the Loan. <br /> 7. BORROWER's Authority to Contract. The BORROWER warrants that it has full power and <br /> authority to enter into this CONTRACT. The execution and delivery of this CONTRACT and the <br /> performance and observation of its terms, conditions and obligations have been duly <br /> authorized by all necessary actions of the BORROWER. The BORROWER's Authorizing Loan <br /> Resolution (attached as Appendix 4) is incorporated herein, <br /> 8. Attorney's Opinion Letter. Prior to the execution of this CONTRACT, by the CWCB, the <br /> BORROWER shall submit to the CWCB a letter from its attorney stating that it is the attorneys <br /> opinion that: <br /> a. the CONTRACT has been duly executed by the BORROWER who is duly authorized to execute <br /> the CONTRACT and to bind the BORROWER; and <br /> b. the Authorizing Loan Resolution, from the BORROWER, authorizing the execution and <br /> delivery of the CONTRACT is duly executed by the BORROWER; and <br /> c. there are no provisions in the BORROWER's articles of incorporation or bylaws or any state <br /> or local law that prevent this CONTRACT from binding the BORROWER; and <br /> d. the CONTRACT will be valid and binding against the BORROWER if entered into by the <br /> CWCB. <br /> g. Debt Service Reserve Account or Fund. To establish and maintain the debt service reserve <br /> account, the BORROWER shall deposit an amount equal to an annual payment into its debt <br /> service reserve account prior to funds being disbursed. In the event that the BORROWER <br /> applies funds from this account to repayment of the loan, the BORROWER shall replenish the <br /> account within ninety (go) days of withdrawal of the funds. The debt service reserve <br /> account requirement is in effect until the loan is paid in full. <br /> Page 6 of 14 <br />