AgdaPkt 2005-01-24 - Laserfiche WebLink

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1. A, "1 1. Amount of Loan. The City agrees to loan the Agency the amount of three million dollars ($3,000,000) (the "Loan") to be taken from the City's Capital Project's Fund (Fund No. 357). 2. AcknowledQement of Loan. The Parties hereby agree that as of the date first written above, the Agency owes the City the amount of three million dollars ($3,000,000) and that the Loan and any accrued unpaid interest constitutes the aggregate amount of this Loan Agreement. 3. Interest. Interest on the unpaid principal balance of the Loan will accrue from the date first written hereinabove at the rate of 4.12% per annum as shown in the Debt Service Schedule which is attached hereto and incorporated herein by reference as Exhibit "A". Amounts deferred pursuant to Section 4 hereof shall bear interest, compounded semi- annually, at the rate of 4.12% per annum. Notwithstanding Section 4 of this Agreement, interest will be payable semi-annually on each June 30 and December 31, commencing June 30, 2005. Interest will be calculated based on a thirty (30) day month and three hundred sixty (360) day year basis. 4. Repavment of Loan The Agency will repay the principal of the Loan, together with interest thereon at the rate set forth in Section 3 of this Loan Agreement, pursuant to Exhibit A, the Debt Service Schedule. At the beginning of each Fiscal Year, the City Manager may allow the Agency to defer, for that Fiscal Year, all or a portion of the scheduled loan payments (both interest and principal) upon written request of the Agency's Redevelopment Aanager. Deferred amounts and interest thereon shall be payable upon demand by the City Manager. In no event will the Loan be deferred or extend beyond July 1,2037. 5. Optional Prepayment of the Loan. The Agency has the right to prepay the unpaid principal balance of the Loan, together with accrued unpaid interest thereon, in whole or in part on any date, without penalty or premium. 6. Security for the Loan The Loan constitutes an obligation and indebtedness of the Agency, secured by a pledge of the Tax Revenues. Payment of the Loan from Tax Revenues is subordinate to the payment of the principal of and interest on any other notes, bonds or other indebtedness of the Agency, or which is otherwise expressly issued on a senior lien basis to the Loan. 7. Maintenance of Tax Revenues. Agency will comply with all requirements of the Redevelopment Law to insure the allocation and payment to it of the Tax Revenues, including without limitation, the timely filing of any necessary statements of indebtedness with appropriate officials of the County of San Mateo and (in the case of supplemental revenues and other amounts payable by the State of California) appropriate officials of the State of California. The Agency will not amend the Redevelopment Plan, or enter into any agreement with the County or any other governmental or private entity, which would have the effect of reducing the amount of Tax Revenues otherwise available to the Agency for payment of the Loan.