Agmt25 SEC-Lenders Documents 2 - Loan Agreement

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200. LOAN AGREEMENT 201. Loan. City hereby agrees to make a total loan (the "Loan") to Borrower in a total amount not to exceed ONE MILLION ONE HUNDRED NINETY NINE THOUSAND NINE HUNDRED NINETY NINE DOLLARS ($1,199,999)], subject to the terms and conditions of the Loan Documents. The Loan shall be (i) evidenced by, and repayable in accordance with, a Promissory Note ("Note"), which is secured by a Deed of Trust ("Deed of Trust"), recorded against the Property. The form of the Note, Deed of Trust, and Regulatory Agreement for each property are attached as Attachments 5, 6, and 7. Borrower shall execute the Note and City and Borrower shall execute the , Deed of Trust, and Regulatory Agreement for the Property, concurrently with the execution of this Agreement by City, and the Deed of Trust and the Regulatory Agreement shall thereafter be recorded in the Official Records. 202. Repayment of Loan. 202.1 Maturity Date. The Loan shall be due and payable in full at the earlier of (i) any sale of the Property by Borrower, to any Party other than an Affiliate of Borrower; (ii) an uncured Default under this Agreement; or (iii) fifty-five (55) years after the date of execution of the Promissory Note (the "Maturity Date"). 202.2 Interest Rate. The Loan shall be repaid pursuant to the terms of the Note and in accordance with Section 202.3 of this Agreement, and shall bear simple interest at the rate of three percent (3%) per annum on the amounts disbursed to Borrower, commencing upon the date of the closing of the Loan. 202.3 Repayment Terms. Commencing on June 1, 20_, and on June 1 of each year thereafter during the Term, Borrower shall make a loan payment in an amount equal to the City Share of Residual Receipts for the prior calendar year (each such payment, an "Annual City Loan Payment"). The City shall apply all Annual City Loan Payments to the Loan as follows: (1) first, to accrued interest, (2) second to principal on the Loan. 203. Use of Funds. The Loan may be used only to pay costs as set forth in the Project Budget. 204. Disbursement of Loan Funds. 204.1 Conditions Precedent to Initial Disbursement. The City shall disburse the Loan Funds pursuant to this Agreement (the "Disbursement") for the acquisition of the Property, subject to the conditions precedent, or waiver by City of each and all of the conditions precedent, described below ("Conditions Precedent to Initial Disbursement"), which are solely for the benefit of the City, and which shall be fulfilled or waived by the time periods provided for herein. a. Subject to expiration of any applicable cure period, Borrower shall not be in default of any of its obligations under the terms of this Agreement. b. Execution and delivery of the Note, the Deed of Trust, the Regulatory Agreement, a Notice of Affordability Restrictions on a form provided by the City. REV: 05-21-25 LF ATTY/AGR.2025.100/HEART-SV (417 Stambaugh St.) (Page 13 of 85)