C150008 Contract - Laserfiche WebLink

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" i documents on behalf of the BORROWER and to bind the BORROWER; that the BORROWER'S stockholders and board of directors have validly adopted resolutions approving this contract; 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 STATE. 9. Promissory Note Provisions. The Promissory Note setting forth the terms of repayment and evidencing this loan in the amount of up to $300,000 at an interest rate of 4.00% per annum for a term of 30 years is attached as Appendix 2 and incorporated herein. a. Revision Of Promissory Note. In the event the BORROWER does not use at least 90% 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 4.00%. The STATE shall calculate the amount of the interest accrued during construction and the BORROWER shall repay that amount to the STATE either within ten (10) days after the date the STATE determines that the PROJECT has been substantially completed, or, at the STATE'S discretion, said interest shall be deducted from the final disbursement of loan funds that the STATE makes to the BORROWER. c. Final loan amount. In the event that the final loan amount is less than the authorized loan amount, the STATE shall apply the ren1aining loan funds to prepayment of the loan if the . remaining funds equal less than 10% of the authorized loan amount. If the remaining loan funds equal more than 10% of the authorized loan amount, the STATE may apply those funds to prepayment of the loan with the BORROWER'S consent, or the parties may execute a REVISION LETTER as described below to document the final loan amount and reamortize the annual payment. When such remaining loan funds are applied to prepayment of the loan, the annual loan payment amount shall remain the same, resulting in a reduced term of repayment. 10. Changes. The parties may decrease the anlOunt of the loan under this contract or extend the time for completion of the PROJECT through a REVISION LETTER, approved by the State Controller or his designee and the BORROWER,' in the form attached hereto as Appendix 3. The REVISION LETTER shall not be valid until approved by the Stale Controller or such assistant as he may designate. Upon proper execution and approval, the REVISION LETTER shall become an amendment to this contract and, except for the Special Provisions of the contract, the REVISION LETTER shall supersede the contract in the event of a conflict between the two. The parties understand and agree that the REVISION LETTER may be used only for decreasing the final loan amount or to extend the time for completion of the PROJECT. In the event that the parties execute the REVISION LETTER to decrease the amount of the loan, the parties shall amend the Promissory Note and all documents executed by the BORROWER to convey security interests to the STATE as required by this contract to reflect the decreased loan amount. 11. Warranties. a. The BORROWER warrants that, by acceptance of the loan money pursuant to the terms of this contract and by the BORROWER'S representation herein, the BORROWER shall be estopped from asserting for any reason that it is not authorized or obligated to repay the loan money to the STATE as required by this contract. b. The BORROWER warrants that it has full power and authority to enter into this contract. The execution and delivery of this contract and the performance and observation of its terms, Leroux Creek Water Users' Association Page 5 of 13 Loan Contract