Orange County NC Website
Browse       Search
DocuSign Envelope ID:99AD3BD7-DDE5-4F33-B12B-32DBF304D7B0 <br /> LOAN AND SECURITY AGREEMENT <br /> THIS Loan and Security Agreement (the "Agreement") is dated as of May 13, 2020, and is by and <br /> between, James Carter Studio, LLC a North Carolina Limited Liability Company ("Borrower") and <br /> Orange County, North Carolina, a political subdivision of the State of North Carolina ("County") <br /> WHEREAS, the COVID-19 pandemic has impacted the global markets and disrupted economic <br /> and business growth throughout the United States including Orange County; and <br /> WHEREAS, on March 10, 2020, the State of North Carolina declared a State of Emergency in <br /> response to the COVID-19 outbreak, followed by the federal government declaring a State of National <br /> Emergency on March 13, 2020, and a Stay-at-Home Order issued by Orange County on March 26, 2020; <br /> and <br /> WHEREAS, the pandemic and emergency orders have negatively impacted the workforce, <br /> businesses, industries and economies with closures and depressed economic activity; and <br /> WHEREAS, the County is committed to supporting its local businesses and created an <br /> emergency loan program using approximately $300,000 of Article 46 Sales Tax revenue originally <br /> budgeted for the Small Business Loan Program; and <br /> WHEREAS, the emergency loan program is targeted to small businesses experiencing revenue <br /> loss due to the pandemic in the form of both grants and loans intended to provide immediate financial <br /> assistance in order to continue operations, return furloughed employees to work or prevent further <br /> closures and layoffs; and <br /> WHEREAS, the Borrower has applied for a loan from the County, and the County has agreed <br /> to make the loan pursuant to its authority granted in N.C. Gen. Stat. 153A-376 and Chapter 166A; and <br /> WHEREAS, this Agreement sets out the terms of the loan, including the terms for payments <br /> and the security for the loan. <br /> NOW, THEREFORE, in consideration of the mutual promises set out in this Agreement, the parties <br /> agree as follows: <br /> PART ONE —AGREEMENT TO MAKE AND REPAY THE LOAN <br /> 1. The County will loan to the Borrower the sum of [$1,000.00] (the "Loan"). The County is making this <br /> loan by giving the Borrower a check for the full amount of the loan at closing. <br /> 2. The Borrower will repay the loan. The Borrower's obligation to repay the Loan will be represented <br /> by a promissory note (the "Note), which the Borrower will execute and deliver to the County in <br /> exchange for the Loan proceeds. The Note will set out the terms of repayment, including payment <br /> dates and interest rates. <br /> 3. The Borrower will use the Loan for the purposes of its business (the "Business") as described in its <br /> application to the County for this Loan. <br /> PART TWO - SECURITY FOR THE LOAN <br /> ESBLPLSA <br />