With regard to the first part of the loan, it was determined that a sum of NIS 300,000 would be made available for the purpose of repaying a debt owed by the class members to plaintiff 6, and this sum would bear an interest rate of 15% per annum, and would be repaid on the "project completion date"[1] Unless bank financing is provided earlier (clause 3.1 of the Agreement). If the amount is not repaid on time, it is determined that the same interest will continue to apply (clause 3.1.5 of the Agreement).
The second part of the loan included the provision of an identical amount, under the same conditions, in order to finance the costs of the consultants and the supervisor (clause 3.2 of the agreement).
The third part of the loan consisted of what was called in the agreement two "phases": the "first phase" included the provision of a credit facility in a maximum amount of NIS 25,000,000 plus NIS 1,250,000 defined as "costs in the future", in order to pay for costs in theNyit The project. It was agreed that payments from within the same framework would be paid directly to the contractor in accordance with monthly performance reports to be approved by the project supervisor. It was also agreed that this credit facility would initially be available until the end of the skeleton of the buildings in the venture, and that its repayment date would be 30 days from the date of completion of the skeleton, or on the date of receipt of bank financing, whichever is earlier.
With regard to the interest, it was agreed that interest would be paid for the provision of the credit in a nominal amount of NIS 2,700,000 "no later than the date of completion of the project". It was also agreed that if the amount made available from the credit facility is not repaid on the date of termination of the skeleton, it will bear an annual (additional) interest rate of 7% until the actual date of payment (clause 3.3.1 of the agreement).
The parties further agreed that the group members would make every effort to obtain alternative financing until the end of the skeleton (clause 3.3.1.8 of the agreement). However, it was agreed that if this is not successful, the lender will continue to provide the group members with loans in order to complete the venture. These loans were referred to in the agreement as the "second phase". It was agreed that the sums to be made available would be paid to the contractor in accordance with monthly reports, as stated above; It seems that the interest rate for them was set about 7%; It was also determined that their repayment date would be 30 days from the date of completion of the venture (clause 3.3.2 of the agreement; for a lack of clarity in the wording of clause 3.3.2.1, which relates to the interest rate, I will refer to In the paragraph 82 below).
- In the framework of the second agreement, collateral was also established to ensure the repayment of the amounts, including the registration of a mortgage on the land (clause 6 of the agreement; the mortgage was indeed registered, see Appendices 11-12 to the affidavit on behalf of the lenders). At the same time, it was determined that the mortgage "will be converted into an individual collateral vis-à-vis each borrower, as soon as it is possible to register an individual lien on each apartment..." (Section 6.6). It was also determined that in this situation
The amount of the debt of each borrower in the real estate will be determined in accordance with a card issued by the group committee, which will constitute conclusive evidence of the borrower's debt, and for this amount the individual lien will be recorded, to the extent that it is possible as stated above. Only after receiving a letter from the lender and the group committee that the specific borrower has paid his debt in full to the lender and the group, will the lien be lifted (ibid.).