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HomeMy WebLinkAboutFirst Bank Of Georgia Augusta Richmond GA DOCUMENT NAME: r; r&-f:. ~"'" K. ~ G =0<>- DOCUMENT TYPE: Con -crc,,-e:k. YEAR: C) \ . BOX NUMBER: tZ-\ FILE NUMBER: J58L-{ C1 . NUMBER OF PAGES: L{ f STATE OF GEORGIA COUNTY OF RICHMOND ) ) CONTRACT This Contract is entered into on and as of November 1,2001, by and between Augusta, Georgia, a political subdivision of the State of Georgia ("Augusta"), and First Bank of Georgia, a corporation organized and existing under the laws of Georgia ("Bank"). WHEREAS, Augusta desires to establish a program with financial institutions with offices in Augusta to facilitate loans to eligible small, minority and women owned businesses doing business in Augusta that qualify as Disadvantage Business Enterprises as defined in Augusta-Richmond County Code S 1-10-58 et seq. ("Businesses"); and WHEREAS, Augusta will make a total initial deposit of Two Million Nine Hundred Thirty-Four Thousand Eight Hundred Dollars ($2,934,800.00) to Bank upon the terms and conditions hereinafter set forth which program is designated as the Link Deposit Program; and WHEREAS, in exchange for Augusta's depositing such sum with Bank, Bank agrees to make loan funding available to eligible Augusta small, minority and women owned businesses and to provide Augusta with quarterly reports detailing the extent and status of loan activity with the use of such terms upon the terms and conditions hereinafter set forth; NOW, THEREFORE, FOR f,\.ND IN CONSIDERATION ofthe mutual benefits flowing to each of the parties hereunder, the 'parties to hereby agree as follows: 1. Augusta shall place on deposit with Bank the sum of Two Million Nine Hundred Thirty-Four Thousand Eight Hundred Dollars ($2,934,800.00). Augusta reserves the right to increase or decrease such deposit as the financial needs of Augusta may dictate. Bank 1 i' shall initially invest same in a Certificate of Deposit for a period not to exceed six (6) months. Bank shall comply with all state requirements as to the investment of such funds and all earnings on such funds shall be added to the deposit and reinvested. 2. This Agreement shall be for a term of three (3) years, beginning January 1, 2002. 3. The parties agree that Bank andlor Augusta may terminate this Agreement either in whole or in part, upon 180 days written notice to the other. 4. Bank shall pay to Augusta interest on the deposit at not less than the interest paid on 6 month U. S. Treasuries. 5. Bank shall facilitate loans to Businesses based upon factors, including, but not limited to, credit of the business; ability of the Business to repay the loans; ability ofthe business to perform contracted for work; the type and amount of the contract awarded by Augusta. 6. The minimum loan amount shall be Three Thousand and noll00 ($3,000.00) Dollars. The maximum loan amount shall be determined by the Bank based upon the Business's financial ability and its capacity to handle the contract All terms of the loan will be negotiated directly between Business and Bank. 7. Augusta shall not participate as a co-borrower, co-maker, endorser, or guarantor on any loan, and by execution of this Agreement with Bank, does not participate in any way in the making, guaranteeing, endorsing, of any loan made by Bank to any Business participating in the Link Deposit Program. All risks associated with making and collecting such 2 .. loan shall be the Bank's and the final decision regarding making and collecting such loan(s) shall be the Bank's. 8. Bank agrees that the rate charged for such loans to Businesses shall be not more than one and one-half (1 12%) per cent over the Prime Rate of interest as quoted in the Money Rates Section of The Wall Street Journal (Eastern Edition), and that an origination fee of not less than $100.00 nor more than one (1 %) per cent of the loan amount shall be charged by Bank on any approved loan. 9. All investments of funds under this Agreement owned by Augusta and on deposit with Bank shall be invested as provided by Georgia law, and in particular O.C.G.A. S 36- 80-3. 10. Bank shall indemnify and hold harmless Augusta and Augusta's agents, elected officials, officers, and employees against all loss, damage and expense which may be sustained, or to which Augusta may become liable for, or on account of injury to or death of persons, or on account of damage or destruction of property resulting from the wrongful act or negligence of Bank or its subcontractors, employees, agents hereunder. 11. Bank shall provide to Augusta quarterly reports that will include the following information: (a) Type ofloan made; (b) Dollar amount of loans made during the quarter; (c) Term ofloans and repayment schedules ofloans made during the quarter: (d) Interest rates of such loans; 3 (e) Number ofloans declined and reason for declining same; (f) The type of project; (g) Total amount of loans outstanding under the Link Deposit Program as of the end of such quarter. 12. Augusta reserves the right to cancel this contract and to withdraw its deposits, upon thirty (30) days notice, should Bank fail to have a satisfactory number of loans outstanding within six (6) months after the execution of this Agreement under the Program and if Bank has failed to demonstrate satisfactory bases for declining loans. 13. All claims, disputes and other matters in question between Augusta and Bank arising out of or relating to the Agreement, or the breach thereof, shall be decided in the Superior Court of Richmond County, Georgia. The Bank, by executing this Agreement, specifically consents to jurisdiction and venue in Richmond County and waives any right to contest the jurisdiction and venue in the Superior Court of Richmond County, Georgia. IN WITNESS WHEREOF, the parties hereto have caused these presents to be executed as of the 1st day of November, 2001. :4ff~ 'lerk AUGU rA.\ By: "'0:f As its Mayor BAN~ By: ~~_ As its ~~ ~Ct.o [SEAL] 4