HomeMy WebLinkAboutPromissory Note - DW1502 - RexburgDEQ Loan #DW1502
PROMISSORY NOTE
DRINKING WATER FACILITY LOAN ACCOUNT
This Promissory Note is executed in conformance with and pursuant
to the Drinking Water Loan Contract DW1502 entered into between the
City of Rexburg (Borrower) and the State of Idaho, Department of
Environmental Quality (DEQ).
For value received, Borrower promises to pay to DEQ the principal
amount of seven million four hundred twenty-five thousand five
hundred forty-nine dollars and twenty one cents for
($7,425,549.21), plus interest on the unpaid balance at the rate of
1.75 percent (1.75%) per annum. The principal and interest of this
note shall be repaid in accordance with the Loan Repayment
Schedule, which is attached as Appendix A and hereby incorporated
by reference. In addition, the Borrower pledges revenue and income
of the Borrower's drinking water treatment facility, whether
collected or uncollected, in an amount sufficient to repay all
principal and interest. The Borrower pledges to establish and
maintain a reserve account equal to three hundred nineteen thousand
two hundred seventy-three dollars and eighteen cents ($319,273.18).
The reserve account will be fully funded within ten years from the
date this note is signed with at least ten percent of the reserve
account funded each year.
Every payment made on any indebtedness evidenced by this note shall
be applied first to interest computed to the effective date of the
payment and then to principal. Refunds and extra payments, after
payment of interest, will be applied to the installments last to
become due under this note and shall not affect the obligation of
the Borrower to pay the remaining installments as scheduled herein.
If DEQ at any time assigns this note and insures the payment
thereof, the Borrower shall continue to make payments to DEQ as
collection agent for the holder. No assignment of this note shall
be effective unless the Borrower is notified in writing of the name
and address of the assignee. The Borrower shall note in its records
the occurrence of such assignment, together with the name and
address of the assignee.
Any amount advanced or expended by DEQ for the collection hereof or
to preserve or protect any security hereto, or otherwise under the
terms of any security or other instrument executed in
Page Two
Promissory Note.
connection with the loan evidenced hereby, at the option of DEQ
shall become a part of and bear interest at the same rate as the
principal of the debt evidenced hereby and be immediately due and
payable by Borrower to DEQ without demand.
This note is given as evidence of a loan to Borrower made or
insured by DEQ pursuant to IDAPA 58 Title 1, Chapter 20. This note
shall be subject to the present regulations of DEQ and to its
future regulations consistent with the express provisions hereof.
Presentment, protest and notice are hereby waived.
Loan payments shall be sent to:
Idaho Department of Environmental Quality
1410 North Hilton
Boise, Idaho 83706-1253
Dated this ____ day of March 2022.
(SEAL) City of Rexburg
Name of Borrower
_______________________________
Signature of Borrower's Official
ATTEST: _______________________________
Title of Borrower's Official
______________________________ _______________________________
Signature of Attesting Official P.O. Box or Street Address
_______________________________
Title of Attesting Official City, State, Zip Code