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LOAN AGREEMENT <br /> <br /> This Loan Aqreement is entered into this 1st day of July, 1997, by and between <br /> the Redevelopmerit Agency of the City of Riverside, California, a public agency (the <br /> "Agency"), and the City of Riverside, California, a municipal corporation (the "City"). <br /> <br /> RECITALS <br /> <br /> WHEREAS, the Agency requires funding for certain redevelopment activities in <br /> accordance with the lease with the Federal General Services Administration ("GSA") to <br /> provide a facility for the U.S. Bankruptcy Court, the U.S. Marshal, and the U.S. Trustee; <br /> and <br /> <br /> WHEREAS, the Merged Airport Industrial/Downtown Redevelopment Project <br /> requires funds to provide operating capital for redevelopment activities; and <br /> <br /> WHEREAS, the City desires to assist the Agency in such implementation; and <br /> <br /> WHEREAS, the California Community Redevelopment Law (Health and Safety <br />Code 33000) authorizes the City to loan funds to the Agency. <br /> <br /> NOW, THEREFORE, the parties hereto do mutually agree as follows: <br /> <br /> 1. AMOUNT OF LOAN - The City agrees to loan to the Agency an amount <br />not to exceed $1 6,000,000 (the "Loan") from the City's Public Utilities Electric Fund <br />(Fund 510) for use in undertaking the implementation activities which include the <br />construction of the U.S. Bankruptcy Court project within the Merged Airport <br />Industrial/Downtown Redevelopment Project. Said Loan shall be in addition to any and <br />all amounts heretofore loaned to the Agency, and shall be evidenced by a promissory <br />note (the "Note") of the Agency in favor of the City. <br /> <br /> 2. DISBURSEMENT OF LOAN PROCEEDS - The City agrees to disburse Loan <br />proceeds to the Agency upon receipt of a request in writing from the Agency. The <br />Agency agrees to use such proceeds only for the purpose of conducting those <br />redevelopment activities identified Section 1, above. <br /> <br /> 3. REPAYMENT OF OBLIGATIONS - In consideration of the Loan, the Agency <br />hereby agrees to pay to the City the principal amount of $1 6,000,000 plus interest, at <br />the rate of the current City Investment Cash Pool rate plus 50 basis points (.50%), <br />commencing from the date of disbursement of the funds of the Loan. The principal <br />and interest is to be repaid in its entirety no later than July 31, 1997. The Agency may <br />pay the entire amount, or remaining amount of principal and accrued interest if there <br />are any partial payments, at any time during the loan period without any penalty or <br />offsets. <br /> <br /> 1 of 3 <br /> <br /> <br />