SR 05:219 - Laserfiche WebLink

Surplus Cash. Payments, if any, shall be delivered within one hundred eighty (180) days of the end ofthe fiscal year along with the audited financial statement required pursuant to Section 4.2. (iv) Forgiveness ofPrincioal and Interest. Subject to the Default provisions of Article 5, at the end ofthe Term, any interest owed in connection with the City Loan that has not yet been paid by Borrower pursuant to this Section shall be forgiven, and in such event the Note shall be cancelled and returned to Borrower. (c) Affordabilitv Reserve. In any given year, to the extent there is Surplus Cash remaining after payments are made in accordance with Section 2.3(b), eighty percent (80%) of such remaining Surplus Cash shall be deposited into an affordabi1ity reserve for the Project, which reserve is described in more detail in Section 2.4 of the Regulatory Agreement. (d) Loan in Excess of Three Hundred Thousand Dollars. Borrower shall notify the City in the event the Borrower makes a contribution to the Project (other than the Three Hundred Thousand Dollars ($300,000) developer fee that may be deferred) that exceeds Three Hundred Thousand Dollars ($300,000). Borrower shall also notify the City in the event any contributions or loans made to Borrower by a parent or affiliate of Borrower and related to the Project exceed Three Hundred Thousand Dollars ($300,000). (e) Net Proceeds of Financing. In the event that any portion of the City Loan has not been used pay the costs of acquisition and development of the Project (including but not limited to the funding of reserves) such funds shall be used by Borrower to repay the HELP Loan. Section 2.4 Preoavment Of Loan. No prepayment penalty will be charged to the Borrower for payment of all or any portion of the Loan amount prior to the end of the Term. Section 2.5 Use of Loan Funds. The Borrower shall use the Loan to fund the Project consistent with the Approved Development Budget. The Borrower shall not use the Loan funds for any other purposes without the prior written consent of the City. Secti on 2.6 Securi tv. (a) Borrower shall secure its obligation to repay the Loan, as evidenced by the Note, by executing the Deed of Trust, and, upon acquisition of the Leasehold Estate, recording it as a lien against the Leasehold Estate. (b) The City agrees to subordinate the Deed of Trust and the Regulatory Agreement to the liens of the deeds of trust securing the Approved Financing and to any regulatory agreement associated with the Approved Financing. The City further agrees that such subordination shall, if required by the lender of any Approved Financing, include an agreement by the City to exercise the remedies under the Loan Documents only upon consent from such lender of Approved Financing. 7 144\105\217525.14