1999 AGN MAR 16 I14 - Laserfiche WebLink

Browse Search

REDEVELOPMENT COOPERATION LOAN AGREEMENT (Community Reinvestment Fund, Inc. Loan to Agency) THIS REDEVELOPMENT COOPERATION LOAN AGREEMENT (the "Agreement") is made and entered into as of this day of March, 1999, by and between the Redevelopment Agency for the City of Colton, a public body, corporate and politic (the "Agency") and the City of>.Colton, California, a municipal corporation (the "City"). The parties hereto agree as follows: WHEREAS, the Agency desires to enter into that certain Loan Agreement dated as of March _, 1999 (the "Loan Agreement") with Community Reinvestment Fund, Inc., a Minnesota nonprofit corporation (the "Lender') pursuant to which the Lender will make a loan to the Agency in the amount of Dollars ($ ) (the "Loan") for the purpose of: providing the Agency with the funds necessary to initiate additional loans to first-time homebuyers in the City through its Mortgage Assistance Loan Program or for other authorized economic development programs; and WHEREAS, the Lender is willing to make the Loan to the Agency upon certain terms and conditions, including the establishing of a debt service reserve fund (the "Debt Service Reserve Fund") from which moneys may be withdrawn for payment to the Lender if and to the extent, on any Interest Payment Date (as that term is defined in the Loan Agreement), there is a deficiency in scheduled payments of principal of and interest on the Loan; and WHEREAS, the Agency is required to replenish the Debt Service Reserve Fund within five (5) days of notice that, on any quarterly valuation date, the amount in the Debt Service Reserve Fund is less than Seventy Five Thousand Dollars ($75,000.00); and WHEREAS, pursuant to the Loan Agreement the City agrees that in the event and to the extent the Agency is unable to replenish the Debt Service Reserve Fund as required under the Loan Agreement, the City shall advance monies to the Agency, subject to annual appropriations from available funds, in an amount sufficient to enable the Agency to cure the deficiency in the Debt Service Reserve Fund; and WHEREAS, the Agency and the City desire to enter into this Agreement for the purpose of implementing the agreement of the City under the Loan Agreement to advance monies to the Agency, if necessary; and WHEREAS, the Agency has adopted its Resolution No. R- , dated March 1999, which approves the Agreement and the indebtedness of the Agency as authorized herein; and 1