Orange County NC Website
Draft of March 6, 2000 <br /> LOAN AGREEMENT <br /> THIS LOAN AGREEMENT is dated as of March J i , 2000 (the "Agreement"), <br /> and is by and among ORANGE COUNTY SMALL BUSINESS LOAN PROGRAM <br /> COMPANY, a North Carolina nonprofit corporation (the "Company"), ORANGE <br /> COUNTY, NORTH CAROLINA, a North Carolina political subdivision (the <br /> "County"), and the national banking associations and North Carolina banking <br /> corporations (the "Banks")listed on Schedule 1. <br /> WHEREAS: The County has determined that it is appropriate and desirable for <br /> the County to stimulate the creation of good jobs for Orange County citizens as well as to <br /> stimulate successful business development and expansion in Orange County. To that end, <br /> the County has created the Company to serve as a lender to qualifying small businesses. <br /> The County and the Company have requested that the Banks provide loans to the <br /> Company to provide funds for the Company to make small business loans, and the Banks <br /> are willing to do so upon the terms and conditions of this Agreement. <br /> NOW, THEREFORE, in consideration of the mutual promises contained in this <br /> Agreement and for other good and valuable consideration,the parties agree as follows: <br /> SECTION 1 <br /> Bank Commitments To Make Advances for Loans <br /> 1.1. Commitment To Make Advances Subject to the terms and <br /> conditions of this Agreement each Bank severally (and not jointly) commits (a) to make <br /> Advances to the Company from time to time during the Commitment Period in an <br /> aggregate amount not to exceed its Loan Commitment and (b) to share in Loan Losses. <br /> The Company shall not be entitled to reborrow funds that it has repaid or prepaid, and <br /> upon each Borrowing, each Bank's Loan Commitment shall be permanently reduced by <br /> the amount of such Bank's Advance included in such Borrowing'. <br /> 1.2. Conditions Precedent to Advances. (a) Each Bank shall be obliged <br /> to make its initial Advance upon its receipt of the following: <br /> (i) A duly executed Note, substantially in the form of Exhibit A, payable to the <br /> order of that Bank; <br /> (ii) A duly executed Security Agreement, substantially in the form of Exhibit <br /> 1 <br />