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12 <br /> SAMPLE LOAN AGREEMENT <br /> (ORANGE COUNTY) <br /> (NORTH CAROLINA) <br /> PUBLIC IMPROVEMENT <br /> LOAN AGREEMENT and PROMISSORY NOTE <br /> THIS AGREEMENT, made this 22nd day of November, 2012 by and between <br /> the ORANGE COUNTY, a North Carolina Corporation (hereinafter referred to as "County"), and JOHN <br /> DOE , (hereinafter referred to as "Borrower"), for value received, the receipt of which is hereby <br /> acknowledged, the Borrower promises to pay to the County the principal sum of Five Thousand and <br /> No/100 Dollars ($5,000.00) at the rate of Two and 00/100 percent(2.00%)per annum simple interest. <br /> WITNESSETH: <br /> WHEREAS, the County shall provide funds for the installation of water and sewer connection <br /> infrastructure, as determined to be an eligible activity in accordance with 24 CFR 570.201 (c), located at 201 <br /> Cameron Street,Hillsborough,North Carolina,by Borrower, and <br /> NOW, THEREFORE, in consideration of the premises, the County and Borrower do <br /> hereby agree as follows: <br /> 4) Statement of Work and Loan Budget <br /> a) The County shall make a Public Improvement (infrastructure) Loan to the Borrower, that will <br /> be incrementally disbursed upon receipt, review and approval of evidence of work completed, <br /> in the amount not to exceed Five thousand dollars and zero cents ($5,000) for a ten (10) <br /> year term at an interest rate of 2% with the initial principal and interest payments to begin <br /> January 1, 2013. The loan will be secured by this Promissory Note and a Deed of Trust upon <br /> the terms and conditions set forth herein. Borrower will also provide title insurance of the <br /> amount loaned showing the County as having third lien on the property. <br /> b) All expenditures will be subject to review and approval by the Department of Finance and <br /> Administrative Services,in accordance with applicable federal, state and local laws. <br /> c) Said funds shall be disbursed by check payable to the Borrower. <br /> 5) Loan Terms <br /> a) County agrees to lend the Borrower the sum of Five Thousand and zero cents ($5,000.00) <br /> at an interest rate of two percent (2%). The loan repayment terms shall be a twenty(20) year <br /> period to commence on January 1,2013. Borrower shall make consecutive monthly payments <br /> including principal and interest at the previously mentioned rate to the County of$46.01 per <br /> month until paid in full. <br /> b) The loan shall be evidenced by this Promissory Note and secured by a County Deed of Trust <br /> of even date herewith with respect to the real property owned by John Doe,LLC executed and <br /> duly recorded in the office of the Register of Deeds of Orange County, North Carolina, and <br /> UCC-1 financing statements duly recorded in the office of the Register of Deeds of Orange <br /> County, North Carolina and the Office of the Secretary of State of North Carolina on the <br /> property of John Doe,LLC. <br /> c) Borrower shall make a final payment to County of all principal and interest then due and owing <br /> on that date (the "Maturity Date") which is the earlier to occur of the following events: <br /> 1 <br />