HomeMy WebLinkAboutA3755 - CRA LOAN FINANCING AGR R 18943 CRA Loan Agreement w/City
• lip Repaid
Agr & Promissory Note
Repaid by 6-30-2002
AGREEMENT #i3755 #372C
R18943, 12-4-96
FINANCING AGREEMENT AND PROMISSORY NorL— _ -- _—
THIS FINANCING AGREEMENT�A,r�ND PROMISSORY NOTE ("Agreement") is
made and entered into this — day of , 199/
("Effective Date") , by and between the CITY OF PALM SPRINGS
("City" ) , and the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF
PALM SPRINGS ("Agency") .
R E C I T A L S
A. City is a municipal corporation and a charter city of the
State of California.
B . Agency is a public body, corporate and politic, organized
and existing under the California Community Redevelopment Law
(Health & Safety Code §33000 et sec . ("CRL") .
C. City is authorized by the CRL to provide financial
assistance to the Agency, including in the form of a loan, and
Agency is authorized by the CRL to obtain loans from the City.
D. City and Agency mutually desire to enter into this
Agreement to effect a loan from the City to the Agency on the terms
hereinafter provided.
NOW, THEREFORE, in consideration of the mutual covenants and
promises hereinafter contained, and for good and valuable
consideration, the sufficiency and receipt of which are hereby
acknowledge, City and Agency agree as follows :
1 . City Loan; Interest Rate . City hereby loans to Agency
the principal amount of SEVENTY-NINE THOUSAND Dollars ($79, 000 . 00)
( "Loan Principal") . Interest shall accrue on the outstanding Loan .
Principal at the rate of six percent (6%) per annum from and after
the Effective Date. Interest shall be compounded annually.
2 . Agency Repayment. The Loan Principal and accrued
interest shall be repaid by Agency out of tax increment funds
allocated to and received by Agency. Agency shall make such
repayment (s) when feasible in the sole discretion of Agency;
provided, however, that the outstanding principal balance and
accrued interest shall be repaid in full no later than June 30,
2002 . All amount due shall be payable at the office of City at
3200 E. Tahquitz Canyon Way, Palm Springs, CA 92263, or at such
other address as City may designate to Agency.
3 . Indebtedness of Agency. The Loan Principal and accrued
interest described in this Agreement shall constitute an
indebtedness of Agency.
4 . Subordination. The repayment of Loan Principal and
accrued interest by Agency shall be junior and subordinate to (i)
GPr[_f!394/019089-0006/3034575.1 a12/1 D/96 ��,
long-term indebtedness of Agency, (ii) all pledges by Agency of tax increments for tax allocation
bonds or other direct long-term indebtedness of Agency, (iii) Agency financing agreements and
other contractual obligations of Agency whether entered into prior to or after the Effective Date
hereof, (iv) any contingent obligations, of Agency, and (v) all statutorily required or imposed
payments, repayments, charges, fees, penalties, and the like.
5. Non-Recourse Obligation. No officer, official, member, employee, agent, or
representative of Agency shall be liable for any amounts due hereunder, and no judgment or
execution thereon entered in any action hereon shall be personally enforced against such officer,
official, member, employee, agent, or representative.
6. Entire Agreement: Amendment. This Agreement shall constitute the entire
agreement of the parties with respect to the subject matter hereof. This Agreement may be
amended or modified only by an agreement in writing signed by the parties after authorization
by the parties' respective governing bodies as may be required by law.
[end - signature page follows]
CM
394/0140844)006/3034575.1 &11/22/96 -2-
Cr a .. 0.- (o
IN WITNESS WHEREOF,the parties hereto have entered into this Agreement as of the
date first above written.
"CITY"
CITY OF P RINGS
By:
ATTEST:
City/Clerk
APPROVED BY THE CITY COUNCtt
APPROVED AS TO FORM BY Res. NO. LL�dA - 77
City Attoind
"AGENCY"
COMMUNITY REDEVELOPMENT
AGENCY OF THE CITY OF PALM
SPRINGS
By:
ATTEST:
i
(A�Xi stant Secretary
APPROVED BY THE C0NITAUP11iY REDEV.
APPROVED AS TO FORM AGENCY BY RES. NO. Iola D3 a�
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Agen ounsel
394ro14084-OM13034575.1 "nn2196 -3-