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<br />) <br /> <br />into by the STATE. <br /> <br />6. Promissory Note Provisions. The Promissory Note setting forth the terms of repayment of <br />the loan in the amount of $65,000 at an interest rate of 3%% per annum for a term of 10 years <br />and evidencing this debt is attached as Appendix C and incorporated herein. <br /> <br />a. Revision Of Promissory Note. In the event the Borrower does not use all of the loan <br />funds for the STUDY, the Promissory Note may be adjusted in accordance with the <br />Changes Provisions of this contract. <br /> <br />b. Interest During Study Period. As the loan funds are disbursed by the STATE to the <br />BORROWER during the study period, interest shall accrue at the rate of 3%%. The amount <br />of the interest accrued during the study period shall be calculated by the STATE and the <br />BORROWER shall repay that amount to the STATE either within ten (10) days after the date <br />the STATE accepts the completed Feasibility Study, or, at the STATE'S discretion, the <br />amount shall be deducted from the final disbursement of loan funds that the STATE makes <br />to the BORROWER. <br /> <br />7. Changes. The STATE may decrease the amount of the loan under this contract or extend the <br />time for completion of the STUDY through a R",VISION LETTER, approved by the State Controller <br />or his designee, in the form attached hereto ,lS Appendix D. The REVISION LETTER shall not <br />be valid until approved by the State Controller or such assistant as he may designate. Upon <br />proper execution and approval, the REVISION LETTER shall become an amendment to this <br />contract and, except for the Special Provisions of the contract, the REVISION LETTER shall <br />supersede the contract in the event of a conflict between the two. The parties understand and <br />agree that the REVISION LETTER may be used only for decreasing the final loan amount or to <br />extend the time for completion of the STUPY. In the event that the parties execute the <br />REVISION LETTER to decrease the amount of the loan, the parties shall amend the Promissory <br />Note and all documents executed by the BORROWER to convey security interests to the STATE <br />as required by this contract to reflect the decreased loan amount. <br /> <br />8. Warranties. <br /> <br />a. The BORROWER warrants that by acceptance of the loan money pursuant to the terms of <br />this contract and by the BORROWER'S representation herein, the BORROWER shall be <br />estopped from asserting for any reason that it is not authorized or obligated to repay the <br />loan money to the STATE as required by this contract. <br /> <br />b. The BORROWER warrants that it has full power and authority to enter into this contract. <br />The execution and delivery of this contract and the performance and obselVation of its <br />terms, conditions and obligations have been duly authorized by all necessary actions of <br />the BORROWER. <br /> <br />c. The BORROWER warrants that it has not employed or retained any company or person, <br />other than a bona fide employee working solely for the BORROWER, to solicit or secure this <br />contract and has not paid or agreed to pay any person, company, corporation, individual, <br />or firm, other than a bona fide employee, any fee, commission, percentage, gift, or other <br />consideration contingent upon or resulting from the award or the making of this contract. <br /> <br />d. The BORROWER warrants that the property identified in the Collateral Provisions of this <br />contract is not encumbered by any other liens of any party other than the STATE or in any <br />other manner. <br /> <br />9. Collateral. Part of the security provided for this loan, as evidenced by the executed Deed of <br />Trust, Security Agreement, and Stock Assignment, attached as Appendix E, Appendix F, <br /> <br />Feasibility Report Loan Contract <br /> <br />Page 3 of9 <br />