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LENDERAGREEMENT BETWEEN THE <br />MINNESOTA DEPARTMENT OF AGRICULTURE AND <br />CITY OF ELK RIVER <br />AGBMP LOAN PROGRAM <br />21111:406M 4 <br />The purpose of this agreement between the Minnesota Department of Agriculture (the DEPARTMENT) and City of Elk <br />River (the LENDER) is to enable the LENDER to be a participating local lender under the Agricultural Best Management <br />Practices Loan Program (the AgBMP LOAN PROGRAM) as provided under Minn. Stat. § 17.117 and to establish <br />procedures to implement the AgBMP LOAN PROGRAM asset forth in this agreement. This agreement shall serve as a <br />lender agreement in accordance with Minn. Stat. § 17.117, subds. 9b and 10. <br />II. AUTHORITY <br />A. This agreement is made pursuantto Minn. Stat. § 17.117. <br />III. GENERAL PROVISIONS <br />A. The DEPARTMENT hereby commits, subject to the conditions of this agreement, to provide funds to the <br />LENDER to make direct loans on behalf of the DEPARTMENTto eligible recipients (BORROWERS) for eligible <br />practices that remediate or mitigate non -point source pollution, adverse environmental impacts, and other <br />eligible activities as defined in Minn. Stat. § 17.117 orthe guidelines of the funding source used to capitalize the <br />loan. The projects must be approved by a local unit of government that has entered into an AgBMP LOAN <br />PROGRAM allocation agreement with the DEPARTMENT and has funds remaining under its allocation from the <br />DEPARTMENT. All funds provided by the DEPARTMENTto the LENDER under this agreement must be repaid <br />to the DEPARTMENT by the LENDER on behalf of the BORROWERS. <br />B. The LENDER shall act as agent of the DEPARTMENTto evaluate the creditworthiness of <br />BORROWERS and shall service any loans made by the LENDER to BORROWERS for approved projects on <br />behalf of the DEPARTMENT. The LENDER shall guarantee full repayment to the DEPARTMENT for loans to <br />BORROWERS issued under the AgBMP LOAN PROGRAM. <br />C. In areas where there is no LOCAL GOVERNMENT UNITto review and certify projects under the <br />AgBMP LOAN PROGRAM, the DEPARTMENT may designate itself as the LOCAL GOVERNMENT UNIT, <br />fulfilling all responsibilities required of the LOCAL GOVERNMENT UNIT under Minn. Stat. § 17.117. <br />D. The effective date of this agreement or future amendments shall be the date of last signature for <br />agencies of the State of Minnesota. This agreement shall remain in effect until the date of final repayment of all <br />disbursements received by the LENDER underthis agreement. <br />E. Attachment A to this agreement sets forth additional conditions and limitations on the use of funds under <br />the AgBMP LOAN PROGRAM and is hereby incorporated into this agreement. The DEPARTMENT shall <br />prepare amendments to Attachment as often as required to document and define changes in funding, <br />schedules, project eligibility, procedures or applicable requirements of governing state and federal law or <br />regulation. Amendments to Attachment A shall apply to all projects that are approved by the LOCAL <br />GOVERNMENT UNIT after the effective date of the amendment. <br />F. All parties to this agreement acknowledge that other lenders approved by the DEPARTMENT and <br />cooperating in the AgBMP LOAN PROGRAM may access undisbursed funds allocated to LOCAL <br />GOVERNMENT UNITS. All funds received by other lenders will be solely the responsibility of the other lenders <br />and shall not increase the amount due from the LENDER. <br />G. This agreement shall apply to and govern all transactions related to the LENDER'S participation in <br />AgBMP Loan Program, regardless of the statutory authority that the LENDER is acting under, including but not <br />limited to LENDERS acting as Drainage Authorities, Housing Authorities, and Community Development <br />Authorities. Multiple agreements with the same LENDER acting under multiple authorities is not required. <br />IV. TERMS FOR FUNDS DISBURSED TO LENDER <br />A. The LENDER shall establish a non -revolving zero -interest principal account for this program. All <br />disbursements from the DEPARTMENTto the LENDER, loans issued to BORROWERS, and payments made <br />by the LENDER to the DEPARTMENT underthis program must be identified as transactions under this <br />program. The LENDER may not charge the DEPARTMENTany fees in connection with the principal account. <br />The principal account may be divided into sub -accounts and the LENDER may establish its own procedure to <br />account for transactions to and from this account. <br />Minnesota AgBMP Loan Program <br />