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CDC - 2007-22 - Prommissory Note of $2,497,920RESOLUTION NO..2007-22 RESOLUTION OF THE ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION, CALIFORNIA AUTHORIZING THE EXECUTION OF A PROMMISSORY NOTE IN THE AMOUNT OF 52,497,920 TO THE CITY OF ROSEMEAD, CALIFORNIA WHEREAS, On June 12, 2007 the Rosemead Community Development Commission voted.to approve the Fiscal 2007-08 budget, and WHEREAS, Included in the budget is a transfer of $2,497,920.00 from the City's General Fund to the Commission's Project Area No. 1 Capital Projects Fund, and WHEREAS, The transfer is to be an interest bearing loan from the City secured with a Promissory Note, and WHEREAS, On September 28, 2007 the cash was transferred from the City's checking account to the Commission's Money Market account. NOW THEREFORE, BE IT RESOLVED, that the Commission does authorize the execution of a Promissory Note dated September 28, 2007 to the City in the in the amount of $2,497,920 at an interest rate of 5.25% per annum for a term of 20 years. PASSED AND ADOPTED, by the Rosemead Community Development Commission, County of Los Angeles, of the State of California on November 20, 2007. (Chairman) ATTEST: (Commission Secretary) Page l of 1 • • PROMISSORY NOTE $2,497,920 Date: September 28, 2007 For value received, the undersigned Rosemead Community Development Commission (the `Borrower"), at 8838 East Valley Boulevard, Rosemead, California 91770, promises to pay to the order of the City of Rosemead, (the "Lender"), at 8838 East Valley Boulevard, Rosemead, California 91770, (or at such place as the Lender may designate in writing) the sum of $2,497,920.00 with interest from September 28, 2007, on the unpaid principal at the rate of 5.25% per annum. The accrued interest only shall be payable in annual installments of $131,140.80 beginning on September 28, 2008, and continuing until September 28, 2027, (the "Due Date"), at which time the remaining principal and interest shall be due in full. THE BORROWER UNDERSTANDS THAT THE PAYMENT OF THE ABOVE INSTALLMENT PAYMENTS MAY NOT FULLY AMORTIZE THE PRINCIPAL BALANCE OF THE NOTE, AND THREFORE, A BALLOON PAYMENT MAY BE DUE ON THE DUE DATE. All payments on this Note shall be applied first in payment of accrued interest and any remainder in payment of principal. This Note shall be construed in accordance with the laws of the State of California. Signed this 000 W) day of Myetn &r at 8838 East Valley Boulevard, Rosemead, California 91770. Borrower: By:_ John imunity Development Commission Chairperson 3OF 4 • . • CITY OF ROSEMEAD Repayment of Advance 5.25% Outstanding Principal Interest Total Principal Payments Payments Payments September 28, 2007 $ 2,497,920.00 - $ - $ 2008 2,497,920.00 - 131,140.80 131,140.80 2009 2,497,920.00 - 131,140.80 131,140.80 2010 2,497,920.00 - 131,140.80 131,140.80 2011 2,497,920.00 - 131,140.80 131,140.80 2012 2,497,920.00 - 131,140.80 131,140.80 2013. 2,497,920.00 - 131,140.80 131,140.80 2014 2,497,920.00 - 131,140.80 131,140.80 2015. 2,497,920.00 - 131,140.80 131,140.80 2016 2,497,920.00 - 131,140.80 131,140.80 2017 2,497,920.00 - 131,140.80 131,140.80 2018 2,497,920.00 - 131,140.80 131,140.80 2019 2,497,920.00 - 131,140.80 131,140.80 2020 2,497,920.00 - 131,140.80 131,140.80 2021 2,497,920.00 - 131,140.80 131,140.80 2022 2,497,920.00 - 131,140.80 131,140.80 2023 2,497,920.00 - 131,140.80 131,140.80 2024 2,497,920.00 - 131,140.80 131,140.80 2025 2,497,920.00 - 131,140.80 131,140.80 2026 2,497,920.00 131,140.80 131,140.80 2027 2,497,920.00 131,140.80 2,629,060.80 Total 4 7 920.00 3 2.622.816.00 $ 5.120.736.00 4OF4 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS. CITY OF ROSEMEAD ) 0 1, Kay Bhatc, Acting Secretary of the Rosemead Community Development Commission, do hereby certify that the foregoing Resolution No. 2007-22 being: RESOLUTION OF THE ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION, CALIFORNIA AUTHORIZING THE EXECUTION OF A PROMMISSIORY NOTE IN THE AMOUNT OF $2,497,920 TO THE CITY OF ROSEMEAD, CALIFORNIA. was duly and regularly approved and adopted by the Rosemead Community Development Commission on the 20th of November 2007, by the following vote to wit: Yes: Low, Nunez, Tran No: Clark, Abstain: Taylor Absent: None Kay B to Acting Secretary