6.1 EDSR 07-21-2014 - Laserfiche WebLink

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of Elk River prior to the maturity date of the loan. Late Payment Charge A late payment charge of 8%of the installment amount may be enforced. 6. REGULATION FOR NEW CONSTRUCTION AND IMPROVEMENTS All buildings which public funds will be used for construction or renovation are to be brought into conformance with city ordinances and state building codes. Repairs may include the following systems and portions of real property: a. Mechanical heating,plumbing,and electrical b. Structural;including the facade of the structure and energy related improvements. c. Hook-up to city services(i.e.water,sewer) d. ADA(Americans with Disabilities Act)improvements 7. LOAN SECURITY AND GUARANTEES Applicant must be able to secure the loan by providing the EDA with a minimum of a subordinate mortgage upon the building and/or assets or other approved collateral. Applicant must demonstrate the financial means to repay the loans,as determined by the Economic Development Authority. Whenever possible,personal guarantees will be made part of any loan agreement. Key person life insurance may be required as determined by the EDA Finance Committee based on loan amount and company ownership partners. 8. TIMING OF PROJECT EXPENSES No project should commence until the Elk River Economic Development Authority has approved the loan application. Any costs incurred prior to the approval of the loan application are generally not eligible expenditures. No building construction should commence until the required city permits are secured. The applicant will be responsible for all legal,recording,and other fees required for protection of a security interest in the loan,payable by a non-refundable 1% processing fee,which is paid at the time of application. In addition to the non-refundable 1%processing fee,all legal and filing fees shall be paid by the borrower at loan closing. Page 11of18 r 0 / E R E I I r NATURE Page 8of18