AGREEMENT BETWEEN THE COUNTY OF SAN MATEO AND THE KINGS MOUNTAIN FIRE BRIGADE FOR A LOAN TO PURCHASE A NEW FIRE ENGINE | |||||
This Agreement is entered into this _____ day of ___________ 2004, by and between the County of San Mateo (“County”) and the Kings Mountain Fire Brigade (“Brigade”) as follows: | |||||
RECITALS | |||||
A. |
The Brigade is a volunteer fire department, that is a 501(c)(3) non-profit corporation, which is included within the San Mateo County Fire Protection System, through which it receives support and assistance from the County for the provision of fire protection services in the Kings Mountain area. | ||||
B. |
The Brigade wishes to purchase a new fire engine to support wildland fire protection in their area. | ||||
C. |
The purchase price of the new engine is $250,000. Through the Fire Brigade and community member efforts, the Brigade can contribute $150,000 towards the purchase of this resource. | ||||
D. |
The Brigade desires a loan of $100,000 from the County Fire Department to complete the purchase of the new wildland engine. | ||||
E. |
The County, through the California Department of Forestry and Fire Protection, which serves as a fire protection provider through a cooperative agreement with the County, is willing to provide a loan to the Brigade upon reasonable terms and conditions. | ||||
NOW, THEREFORE, in consideration of the mutual promises set forth in this Agreement, the parties hereto agree as follows: | |||||
1. |
The County shall provide a twenty-year (20-year), interest-free loan in the sum of $100,000 to the Brigade upon the terms and conditions specified in Section 2 below. The Brigade shall use the loan proceeds as part of the purchase price for the new wildland engine. | ||||
2. |
The Brigade shall execute and deliver to County a Note, in the amount of $100,000, payable to the County (the “Note”). The Note shall be executed prior to any disbursement of funds under this Agreement. The Note shall bear no interest and shall provide that the Brigade will repay the loan with twenty (20) annual five thousand dollars ($5,000) annual payments. The first payment will be due and payable on the first anniversary date of the loan in 2005. Subsequent annual payments shall be made annually on this anniversary date until the full loan amount is repaid. The Note shall provide for its acceleration upon default of the Note or this Agreement, or upon sale or transfer of the collateral. | ||||
3. |
The collateral for this loan shall be the new wildland engine purchased by the Brigade. Brigade shall execute and deliver to County, any and all agreements, instruments, filings and pledges that may be necessary or appropriate to establish and evidence the County’s purchase money security interest in the new wildland engine. | ||||
4. |
The rights and obligations of the Brigade as set forth in this Agreement may not be assigned to a successor entity or organization without the written consent of the County, which consent shall not be unreasonably withheld. | ||||
Dated: |
COUNTY OF SAN MATEO | ||||
By: |
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President, Board of Supervisors | |||||
ATTEST: |
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Clerk of the Board of Supervisors |
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Dated: |
KINGS MOUNTAIN FIRE BRIGADE | ||||
By: |
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