4.5 HRSR 05-04-2015 - Laserfiche WebLink

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3. If Owner fails to meet the Loan Forgiveness Requirements, Owner covenants and agrees with City to repay the Loan in the amount determined as follows: a. If the failure to meet the Loan Forgiveness Requirements occurs within one (1) year after the date of the Loan, Owner shall repay the full Loan Amount to City. b. If the failure to meet the Loan Forgiveness Requirements occurs after the first year, but before the Forgiveness Date, Owner shall repay an amount determined by deducting 20% from the Loan Amount for each full year elapsed since the date of the Loan. The amounts so deducted shall be deemed forgiven. C. In the case of Owner's sale of the Real Property before the Forgiveness Date, the amount of repaymenrt required under this Agreement shall not exceed the "Net Proceeds" of such sale. For purposes hereof, "Net Proceeds" shall mean the sales price of the Real Property minus (i) loan repayment (other than the Loan described in this Agreement), and (ii) closing costs. Any repayment required under this paragraph shall be made to City no later than thirty (30) days following the failure to meet the Loan Forgiveness Requirements, or on such later date or dates as the City, in its sole discretion, may designate. 4. As security for owner's obligation of repayment, and subject to the terms and conditions of this Agreement, Owner by this Agreement hereby grants to City a lien on the real estate hereinafter described (the "Real Estate ") in the Loan Amount (as the same may have been reduced in accordance with this Agreement) plus all amounts of the collection of same including reasonable attorneys' fees, court costs, etc. The Real Estate is situated in the City of Elk River, Sherburne County, Minnesota, and is legally described as: Unit 74, Trout Brook Condominium, CIC No 12, Sherburne County, Minnesota 5. Promptly after any event that causes Owner to fail to meet the Loan Forgiveness Requirements (or, in the event of a sale by contract or deed, at least ten (10) days prior to the date of such sale), Owner or his/her heirs, executors, or representatives, shall give City notice thereof. 6. Ire the event Owner or his/her heirs, executors or representatives shall fail or refuse to make a required repayment within the time required by this Agreement, City may foreclose the lien granted by this Agreement in the Real Property in the manner provided by law. 7. This agreement shall run with the Real Estate and shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, representatives, successors, and assigns.