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excluding the distribution of proceeds resulting from the foreclosure on <br />collateral. <br />The EDA may require additional agreements to be signed by the borrowex (i.e. <br />security agreement, personal guarantees, subsid ~ agreement). Deleted: ~°i, Peet°.,,,,nce <br />2. Simultaneous Micto Loans <br />The simultaneous use of different Micro Loan Fund Programs by any one borrowex <br />or for any one project is prohibited. <br />3. Call of Loan <br />A loan shall become due and payable in full if a business relocates outside of the city <br />of Elk River prior to the maturity date of the Joan. celeted: rnn <br />4. Late Payment Charge <br />A late payment charge of~% of the installment amount may be enforced. Deleted: up t° <br />VI. REGULATION FOR NEW CONSTRUCTION AND IMPROVEMENTS <br />All buildings which public funds will be used for constmction or renovation axe to <br />be brought into conformance with city codes and policies. Repairs may include the <br />following systems and portions of real property: <br />a. Mechanical heating, plumbing, and electrical <br />b. Strucmxal; including the facade of the structure and energy related <br />improvements. <br />c. Hook-up to city services (i.e. water, sewer) <br />VII. LOAN SECURITY AND GUARANTEES <br />Applicant must be able to secure the loan by providing the EDA with a minenum of <br />a subordinate mortgage upon the building and/or assets or other approved collateral. <br />Applicant must demonstrate the financial means to repay the loans, as deternilrted by <br />the Economic Development Authority. <br />Whenever possible, personal guarantees will be made part of any loan agreement. <br />VIII. TIMING OF PROJECT EXPENSES <br />No project should commence until the Elk River Economic Development Authority <br />has approved the loan application. Any costs incurred prior to the approval of the <br />loan application are generally not eligible expenditures. <br />No building construction should commence until the required City permits are <br />secured. <br />The applicant will be responsible for all legal, recording, and other fees required for <br />protection of a security interest in the loan, payable by anon-refundable 1% <br />processing fee, which is paid at the time of application. <br />Deleted: revised June woa <br />Formatted: Superscript <br />Elk }liver Econumic Development Authority Page 5 of 15 <br />Micro Iran Fund Policy & Guidelines <br />.tr~Unfrlh~bn- p~OUG , <br />