1995 RES R-22-95 - Laserfiche WebLink

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approved the proper use of the Agency funds for any such use or loan; and WHEREAS, the Agency shall not, under any circumstance, use any bond proceeds legally available for use by the Agency or any monies from the Low -and -Moderate -Income Housing Fund for the loan of additional funds made to City pursuant to this Agreement or any subsequent loan agreement. NOW, THEREFORE, in consideration of the promises and covenants contained herein, the parties hereto mutually agree as follows: Section 1. Amount of Loan. The Agency hereby loans to the City an amount equal to $1,911,077.25 subject to the conditions and restrictions set forth herein (the "Loan"). All such Loan amounts to the City were made by the Agency prior to execution of this Agreement and are listed on Attachment "A" attached hereto and incorporated herein by this reference. Section 2. Disbursement of Funds. The Agency disbursed Loan proceeds to the City from the Agency funds invested in the LAIF which were held in reserve or were surplus tax increment revenues that the Agency did require for immediate disbursement. No subsequent utilization or loan of the Agency funds shall be made by the Agency to the City unless both the City and the Agency by official action have approved such subsequent loan as either an amendment to this Agreement or by approval and execution of a subsequent loan agreement. Section 3. Use of Funds. The City understands and agrees that all Loan proceeds advanced to the City hereunder may be used for any lawful purpose of the City and such proceeds shall no longer be deemed tax increment revenues or other funds of the Agency upon receipt by the City of such Loan proceeds. Section 4. Debt to Agency. In consideration of the Loan, the City acknowledges its debt to the Agency in the amount of all funds disbursed pursuant to this Agreement, and declares its intent that all funds previously received or as may be received hereafter are expected to be repaid to the Agency from legally available funds of the City. Section 5. RepayLuent. The City agrees to pay the Agency any and all Loan proceeds borrowed pursuant hereto together with interest at the rate of four percent (4%) interest per annum which shall be payable at such time as amounts due and payable are paid from time -to -time to the Agency. All amounts at any time owing pursuant to this Agreement shall be due and payable, together with -2-