C153792 Contract - Laserfiche WebLink

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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 Property 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 attomey stating that it is the attomey'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 trustees 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 debt in the amount of $188,000 at the interest rate of 3.5% per annum for a term of twenty 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 3.5%. The amount of the interest accrued during construction 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 PROJECT has been substantially completed, or, at the STATE'S discretion, the amount shall be deducted from the final disbursement of loan funds that the STATE makes to the BORROWER. 10. Changes. The STATE may decrease the amount 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, in the form attached hereto as Appendix 3. The REVISION LETTER shall not be valid until approved by the State 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. The Weldon Valley Ditch Company Page 5 of 14 Loan Contract