09.b3 Equipment Certifiate Loan AgreementLOAN AGREEMENT
This Loan Agreement is made as of this 16th day of January, 2025, by and between the City
of Scandia, Washington County, Minnesota (the “Issuer”) and the Security State Bank of Marine,
located in Marine on St. Croix, Minnesota (the “Lender”).
R E C I T A L S
WHEREAS, the Issuer desires to obtain a loan from the Lender to be evidenced by the
Issuer’s $340,000 General Obligation Certificates of Indebtedness, Series 2025A, dated as of the
date first written above (the “Certificates”). The proceeds of such loan shall be used for the
purchase of certain items of capital equipment, including but not limited to the purchase of a fire
engine (the “Project”) as more fully described in the Issuer’s resolution adopted on December 17,
2024 (the “Resolution”).
WHEREAS, the parties hereto desire to set out the terms and conditions of such loan and
the Certificates and the terms and conditions of advancing funds pursuant to the Certificates.
NOW, THEREFORE, it is hereby agreed as follows:
1. The Issuer agrees to issue and sell the Certificates to the Lender, and the Lender
agrees to purchase the Certificates and make the loan, which will be repaid in accordance with the
terms and conditions set forth in the Resolution and in the Certificates.
2. The Lender shall agree to accept the debt instrument for investment and not with a
present view to the distribution, transfer or resale thereof. The Lender intends to hold and book the
Certificates as a loan in its loan portfolio; the Lender acknowledges that the use of the word
“Certificates” in the name of the debt instrument is for convenience only and is not intended to
indicate that the instrument is a security within the meaning of the Securities Act of 1933.
3. The Lender agrees to hold the Certificates for its own account until maturity or
early redemption and does not intend to dispose of all or any portion of such Certificates and
understands that transfer of any Certificate is restricted pursuant to the terms of the Resolution, the
Certificates and this Loan Agreement.
4. On the date of issuance of the Certificates, the Lender shall advance the entire loan
amount of $340,000 in exchange for delivery of the Certificates by the Issuer.
5. All capitalized terms not defined herein shall have the meaning, as defined, in the
Resolution.
[Signature page to Loan Agreement dated as of the date first written above, by and between the
City of Scandia, Minnesota and Security State Bank of Marine, located in Marine on St. Croix,
Minnesota]
2
This Agreement is dated as of the date and year first above written.
CITY OF SCANDIA, MINNESOTA
By
Mayor
By
City Administrator
[Signature page to Loan Agreement dated as of the date first written above, by and between the
City of Scandia, Minnesota and Security State Bank of Marine, located in Marine on St. Croix,
Minnesota]
3
This Agreement is dated as of the date and year first above written.
SECURITY STATE BANK OF MARINE
By
Its