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<br /> AGREEMENT AND MORTGAGE
<br /> WHEREAS, the City of uecatur (hereinafter called "Mortgagor")
<br /> has applied to, received and accepted from the United States
<br /> Department of Commerce, Economic Development Administration (EDA) a
<br /> grant in the amount of Four Hundred Six Thousand 7'wo Hundred Dollars
<br /> ($406,200) (Grant Amount) pursuant to a Grant Agreement entered into
<br /> by the parties on September 21, 1991, and bearing EDA Project Number
<br /> 06-01-02555 (the Project); and
<br /> WIiEREAs, pursuant to the application filed by Mortgagor
<br /> requestinq said grant and pursuant to the Grant Agreement
<br /> Three Hundred Thousand Six Hundred Sixty Dollars ($300,660) of the
<br /> Grant Amount is to be used for the purpose of making improvements
<br /> consisting of the renovation of an industrial incubator on the real
<br /> Property described in Exhibit "A", attached hereto and made a part
<br /> hereof (the Property); and
<br /> WHEREAS, any transfer or conveyance of a Project by an EDA
<br /> Grantee must have the prior written approval of EDA. However, EDA,
<br /> under authority of the Public Works and Economic Development Act of
<br /> 1965, as amended, 42 U.S.C. Section 3121, is not authorized to
<br /> permit transfer or conveyance of a Project to parties which are not
<br /> eligible to receive EDA grants unless EDA is repaid its share of the
<br /> fair market value of the Project or unless the authorized purpose of
<br /> the EDA qrant was to develop land in order to lease it for a
<br /> specific use, in which case EDA may authorize a lease of the Project
<br /> if certain conditions are met; and
<br /> WHEREAS, the aforesaid grant from EDA provides the purposes for
<br /> which Three Hundred Thousand Six Hundred Sixty Uollars ($300,660) of
<br /> the Grant Amount may be used and provides inter alia, that Mortgagor
<br /> will not sell, mortgage, or otherwise use or alienate any right to,
<br /> or interest in the Property, or use the Property for purposes other
<br /> than and different from those purposes set forth in the Grant
<br /> Agreement and the application made by Mortgagor therefor, such
<br /> alienation or use being prohibited by 13 CFR Part 314, or by 15 CFR
<br /> Part 24 or by Office of Management and Budget Circular A-110,
<br /> Attachment N; and
<br /> WHEREAS, the value of EDA's right to repayment under the terms
<br /> of 15 CFR Part 24, OMB Circular A-110, Attachment N is difficult to
<br /> establish; and
<br /> WHEREAS, at this time, Mortgaqor and EDA desire to establish a
<br /> value for EDA's share of the Project in the event that the Property
<br /> is used, transferred or alienated in violation of the Grant
<br /> Agreement, 15 CFR Part 24, OMB Circular A-110 or 13 CFR Part 314;
<br />' NOW THEREFORE, Mortgagor does hereby grant and convey unto EDA,
<br /> its successors and assigns, a mortqage on said Property to secure a
<br /> debt that shall become due and payable by Mortgaqor to EDA upon the
<br /> use, transfer or alienation of the Property in violation of the
<br /> Grant Agreement or in violation of the regulation set forth in
<br /> 13 CFR Part 314, 15 CFR Part 24, or OMB Circular A-110, as such
<br /> Grant Agreement, regulations or Circulars may be amended from time
<br /> to time, provided, however, that the lien and encumbrance of this
<br /> AGREEMENT AND MORTGAGE shall terminate and be of no further force
<br /> and effect 25 years from the date hereof, which period of years has
<br /> been established as the useful life of the improvements to the
<br /> Property. '1'he amount ot the lien, enc•umbrrnce and debY created by
<br /> thi-s Agreement shall be the Grant Amount or the amount actually ,
<br /> disbursed or an amount determined pursuant to 13 CFR Part 714.
<br /> Mortgagor does tiereby acknowledge that said debt shall accrue and be
<br /> � due and payable upon any use, transfer, or alienation prohibited by
<br /> � .. the Grant Agreement, 15 CFR Part 24, OMB Circular A-110, or 13 CFR
<br /> Part 314, and does, moreover, agree that such debt shall be
<br /> extinquished only through the full payment thereof to the United
<br /> • States.
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