Laserfiche WebLink
<br />-~\ <br /> <br />binding the BORROWER, and that the contract will be valid and binding against the BORROWER if <br />entered into by the STATE. <br /> <br />4. Promissory Note Provisions. The Promissory Note setting forth the terms of repayment <br />and evidencing this debt is attached as Appendix 1 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 PROJECT, the Promissory Note may be adjusted in accordance with the <br />Changes Provisions of this contract. <br /> <br />b. Interest During Completion of PROJECT. As the loan funds are disbursed by the STATE <br />to the BORROWER during PROJECT completion, interest shall accrue at the rate of 4.1 % per <br />annum. The amount of the interest accrued during PROJECT completion on the funds that <br />have been disbursed shall be calculated by the STATE, and the BORROWER shall repay that <br />amount to the STATE within ten (10) days after the date the STATE determines that the <br />PROJECT has been substantially completed. Under this contract, substantial completion of <br />the PROJECT means full payment for the Box Springs Water Rights by the BORROWER, and <br />full payment by the BORROWER to Reid pursuant to the Settlement Agreement. <br /> <br />5. Changes. The parties may decrease the amount of the loan under this contract or extend the <br />time for completion of the PROJECT through a REVISION LETTER, approved by the State <br />Controller or his designee, in the form attached hereto as Appendix 2. The REVISION LETTER <br />shall not be valid until approved by the State Controller or such assistant as he may <br />designate. Upon proper execution and approval, the REVISION LETTER shall become an <br />amendment to this contract and, except for the Special Provisions of the contract, the <br />REVISION LETTER shall supersede the contract in the event of a conflict between the two. The <br />parties understand and agree that the REVISION LETTER may be used only for decreasing the <br />final loan amount or to extend the time for completion of the PROJECT. In the event that the <br />parties execute the REVISION LETTER to decrease the amount of the loan, the parties shall <br />amend the Promissory Note and all documents executed by the BORROWER to convey security <br />interests to the STATE as required by the Collateral and Pledge of Property provisions of this <br />contract to reflect the decreased loan amount. <br /> <br />6. 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 representations herein, the BORROWER shall be <br />estopped from asserting for any reason that he is not obligated to repay the loan money <br />to the STATE as required by this contract. <br /> <br />b. The BORROWER warrants that he 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 />c. 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 />7. Collateral. The security provided for this loan shall be an undivided one hundred percent <br /> <br />Rodney J. Preisser <br /> <br />Page 3 of 9 <br /> <br />Loan Contract <br />