HomeMy WebLinkAboutVerve & Oshkosh/ Cash CollateralCASH COLLATERAL AGREEMENT
CASH COLLATERAL AGREEMENT between Verve, a Credit Union, organized and existing
under the laws of the State of Wisconsin ("Verve"), and the City of Oshkosh, a municipal
corporation, organized and existing under the laws of the State of Wisconsin(" City").
WHEREAS, the City of Oshkosh has entered into an Agreement with Greater Oshkosh
Healthy Neighborhood Incorporated ("GO HNI") for the purposes of providing services in
support of Oshkosh Neighborhoods and has entered into an Agreement with GO HNI for the
purposes of providing cash collateral in support of GO HNI's acquisition and rehabilitation
of properties within the City of Oshkosh; and
WHEREAS, Verve has entered into an agreement to provide a Line of Credit to GO HNI for
the purposes of purchasing and rehabilitating properties as provided for by the Agreement
between City and GO HNI; and
WHEREAS, Verve requires cash collateral for the Lute of Credit; and
WHEREAS, City is willing to provide cash collateral for the Line of Credit to GO HNI in
support of GO HNI's performance of its Agreement with City.
NOW, THEREFORE, in consideration of the mutual promises contained herein and other
good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged by the parties hereto, City and Verve agree as follows:
1. Cash Collateral. As security for the payment of all obligations of GO HNI under the
Line of Credit in the amount of two hundred thousand dollars ($200,000.00) issued by
Verve to GO HNI for the purposes of purchasing and rehabilitating properties as
provided for by the Agreement between City and GO HNI (the "Line of Credit"), City
shall deposit two hundred thousand dollars ($200,000.00) in the form of a certificate of
deposit with Verve (the "Cash Collateral").
2. Term. The Certificate of Deposit shall be a two year Certificate of Deposit.
3. Interest Rate. The Certificate of Deposit shall bear interest at the rate of 0.80%.
Interest may be invested or reinvested, or if not invested or reinvested shall be
deposited and held in a cash collateral account for the purposes identified in this
Agreement.
4. Lien of Verve on Collateral Fund for payment of Line of Credit. City hereby grants to
Verve a lien on and security interest in the Cash Collateral specified in paragraph 1
above for the payment of any amounts due under the Line of Credit.
5. Verve may apply the Cash Collateral to satisfy any amounts due and owing for which
GO HNI may be h -t default under the terms of the Line of Credit. Prior to application
of the Cash Collateral to the amount in default, Verve shall provide City and GO HNI
five (5) business days notice of Verve's intention to satisfy the amounts due from the
9. Governing Law. This Agreement shall be governed by the Laws of the State of
Wisconsin.
In the Presence of:
(Seal of Contractor
if a Corporation.)
In the Presence of:
(Seal of Contractor
,if a Corporation.)
By: ----I
William
Chair
V V
By:
John 11, *Poi Business Lending
By:
Mark A. Rohloff, City Manager
(Witness)
And:
(Witness) Pamela R. Ubrig, City Clerk
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1175,
I hereby certify that the necessary provisions
have been made to pay the liability which will
accrue under this contract.
Trena Larson, City Comptroller