I
NTERFUND LOAN AGREEMENT
This Loan Agreement (Agreement) is executed as of October 19, 2023 (Effective Date), between the City of Fresno, EPA Brownfields Revolving Loan Grant (Fund No. ____) (Lender) and the City of Fresno General Fund (Fund No. ____) (Borrower). Lender agrees to lend to Borrower, and Borrower agrees to repay Lender, an amount not to exceed the Principal Amount and interest accrued on the unpaid loan balance, in accordance with the following:
1. Purpose of the Loan: To provide funds for use by the Borrower or its designee to Demolish the City owned building located at 735- 741 H Street, Fresno CA 93721 – Parcel Number 467- 040-23. This loan is required by the Environmental Protection Agency when using the Brownfields Revolving Loan Fund. Grant number 98T08001 awarded to the City of Fresno on August 18, 2020.
2. Principal Loan Amount: Not to exceed $539,972.00. The loan will be recorded as receivable to the Lender and payable to the Borrower.
3. Term of the Loan: The term of this loan shall begin on the Effective Date and shall be repaid in full as of October 19, 2028.
4. Scheduled Payments. Borrower shall make payments against principal and interest twice a year on _________ and _________. Each payment shall be credited first to interest then due, and then to principal. Immediately after that, interest will cease on the principal so credited.
5. Rate of Interest. Any interest not paid when due shall bear interest from its due date at the rate specified; provided, however, that in no event shall the interest rate, as calculated and accrued, exceed the maximum legal rate applicable to loans by public entities to public agencies in similar trans actions. The interest rate shall be a rate equal to the City’s Pooled Investment Rate, fixed monthly, calculated and accrued in the same manner that the City would otherwise earn interest on the funds if deposited and earning interest as a pooled investment. The rate for August 2023 was 2.6%.
Loan interest will be recorded as revenue to the Lender and expenditure to the Borrower.
6. General Provisions. This Agreement constitutes the full Agreement by and between the parties and no other representations have been made regarding the contents of this Agreement. This Agreement shall not be amended, modified, or altered in any respect unless such amendment, modification, or alteration has been reduced to writing and executed by both parties.
LENDER
Georgeanne A. White, City Manager
City of Fresno
BORROWER
Georgeanne A. White, City Manager
City of Fresno