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. ,,, LOAN CON1RACT Lower Arkansas Water Management Association Feasibility Study 6, (pROMISSORY NOTE PROVISIONS): 6a. (This Contract is a Promissory Note): The Borrower understands that this Contract is also a promissory note for the repayment of funds loaned by the State to the Borrower according to the terms set forth herein. 6b. (Borrower to Repay Principal, plus interest): In consideration of the State loaning the Borrower the funds to pay for the cost of the preparation of the said Feasibility Study report, the Borrower shall repay to the State the entire principal amount actually borrowed under this contract, plus interest at four and one quarter percent (4.25%) per annum on each loan advance disbursed to the Borrower, starting from the date of advancement of funds by the State, regardless of whether The Project is implemented or not. The maximum amount that the Borrower can borrow under this contract is $65,000. 6c. (Pay interest During the Study Period): The Borrower shall repay to the State interest during the time the Feasibility Study is being prepared by the Consultant, which will be calculated 'monthly at an equivalent rate of four and one quarter percent (4.25%) per annum on each loan advance disbursed to the Borrower during the Study period. The interest thus accumulated shall be paid to the State as a single lump sum on the fust day of the month following the month that the final written Feasibility Report is accepted by the State. The actual interest which will accumulate during the Study period is unknown and cannot be calculated until the conclusion of the feasibility study. 6d. (Repayment terms if The Project is not implemented): In the event the Borrower does not implement The Project, then the entire principal amount actually borrowed under this contract, plus interest at four and one quarter percent (4.25%), shall be payable in ten (l0) equal yearly installments. If the amount actually borrowed is $65,000, then the said equal yearly payments shall be Eight Thousand One Hundred and Thirteen Dollars and Ninety Six Cents ($8,113.96) each, as shown in Appendix C. The first installment shall be due and payable one year after the completion and acceptance of the Feasibility Study by the State. Subsequent payments shallbe due and payable on the same month and day of each year thereafter until all principal and accrued interest have been paid. 6e. (This loan may be rolled into the loan for implementation of The Project): If the Borrower does proceed with the implementation of The Project then the entire principal amount actually borrowed under this contract, and any accrued interest at a rate of four and a quarter percent (4.25%) may be rolled into the loan for the implementation of The Project. Page 4 of 12 Pages . ...' - .