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ARTICLE X - DETAILS OF FINANCING <br /> 10.01. PRINCIPAL AMOUNT OF LOAN. <br /> The principal amount of the Loan is $696,200, which includes $669,500 to be disbursed to the <br /> Local Government and$26,700 of Capitalized Interest. <br /> Capitalized Interest is not disbursed to the Local Government,but is amortized via periodic Loan <br /> repayments to the Department as if it were actually disbursed. Capitalized Interest is computed at the <br /> combined rate of interest and Grant Allocation Assessment, or rates, set for the Loan. It accrues and is <br /> compounded annually from the time when disbursements are made until six months before the first <br /> Semiannual Loan Payment is due. Capitalized Interest is estimated prior to establishment of the <br /> schedule of actual disbursements. <br /> 10.02. LOAN SERVICE FEE. <br /> The Loan Service Fee is $13,000 for the Loan amount authorized to date. The fee represents two <br /> percent of the Loan amount excluding the Loan Repayment Reserve and Capitalized Interest amounts; <br /> that is, two percent of$650,000. An additional Loan Service Fee amount will be assessed for any <br /> additional funding provided by amendment to the Agreement. The fee shall be adjusted downward if <br /> adjustment of Project costs results in a Loan decrease, provided that the decrease amendment is executed <br /> before the first Semiannual Loan Payment due date. <br /> Interest shall accrue on the Loan Service Fee at the combined rate of interest and Grant <br /> Allocation Assessment, or rates, set for the Loan until the fee is paid. Loan Service Fee interest shall be <br /> compounded annually from the effective date of the Loan until six months before the first Semiannual <br /> Loan Payment is due at which time it is capitalized. The estimated Loan Service Fee capitalized interest <br /> is $1,070. <br /> 10.03. INTEREST AND GRANT ALLOCATION ASSESSMENT RATES. <br /> The combined rate of interest and Grant Allocation Assessment on the unpaid principal of the <br /> Loan amount specified in Section 10.01 is 3.16 percent per annum. Individually, the interest rate is <br /> 1.58 percent per annum and the Grant Allocation Assessment rate is 1.58 percent per annum. However, <br /> if this Agreement is not executed by the Local Government and returned to the Department before <br /> October 1, 2001 the interest and Grant Allocation Assessment rates may be adjusted. New interest and <br /> Grant Allocation Assessment rates may be established for any funds provided by amendment to this <br /> Agreement. <br /> 10.04. LOAN TERM. <br /> Unless the Loan term is extended by an amendment to this Agreement, the Loan shall be repaid <br /> in 20 Semiannual Loan Payments. <br /> 10.05. REPAYMENT SCHEDULE. <br /> The Semiannual Loan Payment shall be computed based upon the principal amount of the Loan <br /> plus the Loan Service Fee and Loan Service Fee capitalized interest and the principle of level debt <br /> service. The Department will deduct the Loan Service Fee and all associated interest from the first two <br /> payments. The Loan principal and Semiannual Loan Payment amounts may be revised by amendment of <br /> 13 <br />