Orange County NC Website
Browse       Search
37 <br /> i <br /> Rural Economic Development Loan Agreement and EXHIBIT E 1 <br /> Legally Binding Commitment, Private Owner 2oZ0.025-32o1•Z507 <br /> BUILDING REUSE PROGRAM—Revision#3 <br /> (h). A cash match grant, loan or other funding("Cash Match")equal to the amount of the <br /> Loan shall have been unconditionally committed to the Project, The Governmental <br /> Unit shall have procured and contributed at least five percent(5%)of this Cash <br /> Match, but no part of this 5%contribution can have derived, either directly or <br /> indirectly, from any other State or federal source.The Owner hereby represents and <br /> warrants that all Cash Match funds shall be utilized exclusively for the purpose of the <br /> Project and that it shall not make or approve of improper expenditures of Cash Match <br /> funds. The Owner shall expend all Cash Match funds prior to or simultaneously with <br /> and at the same rate as its expenditure of Loan funds. <br /> 12. Cessationaermination, Bankruptcy. Dissolution or lnsolvency. <br /> (a). The Owner shall at all times preserve its legal existence, except that it may merge or <br /> consolidate with or into or sell all or substantially all of its assets to any entity that <br /> expressly undertakes,assumes for itself and agrees in writing to be bound by all of <br /> the obligations and undertakings of the Owner contained in this LBC, If the Owner <br /> so merges,consolidates or sells its assets without such an undertaking being provided, <br /> it agrees to repay to the Governmental Unit or Commerce,upon request and as <br /> directed,all unspent Loan funds, Further,any merger,consolidation or sale without � <br /> such an undertaking shall constitute a material default under this LBC, and the <br /> Governmental Unit or Commerce may terminate the LBC upon written notice to the <br /> Owner and hold the Owner liable for any other repayment provided for under this <br /> LBC. <br /> (b). Other than as provided for in Paragraph 12(a), if the Owner or any Business ceases to <br /> do business or becomes the subject of any bankruptcy,dissolution or insolvency <br /> proceeding prior to the Termination Date,the Owner shall give the Governmental <br /> Unit immediate notice of the event,shall not expend any Loan funds without the <br /> express written authorization of the Governmental Unit and shall return all unspent <br /> Loan funds to the Governmental Unit or Commerce,upon demand and as directed <br /> and if permissible under applicable bankruptcy,dissolution or insolvency law. <br /> (c). If the Owner falls to provide the Governmental Unit notice of the Owner or any <br /> Business ceasing to do business or becoming the subject of any bankruptcy, <br /> dissolution or insolvency proceeding prior to the Termination Date, it shall constitute <br /> a material default under this LBC. If there is such a cessation or such a proceeding, <br /> the Governmental Unit or Commerce may terminate the LBC upon written notice to <br /> the Owner, Upon such termination,the Owner Shall not expend any Loan funds <br /> without the express written authorization of the Governmental Unit and shall return <br /> all unspent Loan funds to the Governmental Unit or Commerce upon demand and as <br /> directed and if permissible under applicable bankruptcy,dissolution or insolvency <br /> law. <br /> d). Notwithstanding the foregoing and wherever referred to in this LBC,"ceases to do <br /> business"shall not include(1)ceasing operations to maintain,service or upgrade real or <br /> personal property of the Owner,(2)season shutdowns of operations as long as such <br /> cessation does not exceed a total of four(4)weeks in any calendar year(excluding time <br /> attributable to an event of force majeure as described below)and(3)under the <br /> circumstances for the period of time described in Paragraph 22 below. <br /> i <br /> Legally Binding Commitment-7 <br /> i <br /> i <br />