05-09-2018 Council Packet - Laserfiche WebLink

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percent (4.0%) per annum (the “Interest Rate”) on Four Hundred Fifty Thousand and 00/100 Dollars ($450,000.00) of the Principal Balance and no interest shall(the “Initial Disbursement”) as of the date of this Note. The Interest Rate shall not apply nor accrue on the remaining Principal Balance of One Hundred Fifty Thousand and 00/100 Dollars ($150,000.00) of the Principal Balance which shall be repaid on the Maturity Date as part of the Balloon Payment(the “Future Disbursement”) until such time that the Future Disbursement has been disbursed by Holder to the Borrower or to a third party authorized by the Borrower and the Holder to receive the Future Disbursement. 4. Calculation of Interest. In all cases interest on this Note shall be calculated at the Interest Rate on the basis of a 365 day year but charged for actual days the Principal Balance is and remains unpaid. 5. Prepayment. The entire outstanding principal balance of this Note may be prepaid at any time at the option of the Borrower, in whole or in part, without penalty. Any partial prepayment shall not relieve Borrower from the obligation to make the next succeeding installment payments due hereunder, and such prepayment shall be in payment of principal last due under this Note. 6. Order of Priority. All payments and prepayments shall, at the option of the Holder, be applied first to any costs of collection, second to accrued interest on this Note, and last to the Principal Balance. 7. Events of Default. As used in this Note, the term “Event of Default” shall mean and include any one or more of the following events: a. Payments. The Borrower shall after thirty (30) days’ prior written notice to Borrower by Holder, fail to pay any amounts required to be paid by the Borrower under this Note, or any other indebtedness of the Borrower to the Holder, when due, whether any such indebtedness is now existing or hereafter arises and whether direct or indirect, due or to become due, absolute or contingent, primary or secondary or joint and several and more than thirty (30) days have elapsed from the written notice from Holder to Borrower of such non-payment. b. Covenants. The Borrower shall fail to observe or perform any covenant, condition or agreement to be observed or performed by Borrower under this Note for a period of ten (10) days after written notice given to the Borrower by the Holder specifying such default and requesting that it be remedied;. c. Bankruptcy. The Borrower shall file or have filed against Borrower a petition in bankruptcy or for reorganization or for an arrangement pursuant to any present or future state or federal bankruptcy act or under any similar federal or state law (unless such petition is discharged within (30) days); or shall be adjudicated as bankrupt or insolvent, or shall make a general assignment for the benefit of Borrower’s creditors, or shall be unable to pay Borrower’s debts generally as they become due; or if an order for relief under any present or future federal bankruptcy act or similar state or federal law shall be entered against the Borrower; or if a petition or answer requesting or proposing the entry of such order for relief or the adjudication of the Borrower insolvent or bankrupt or for reorganization under any present or future state or federal bankruptcy act or any similar federal or state law shall be filed in any court and such petition or answer shall not be discharged or denied within thirty (30) days after the filing thereof; or if a receiver, trustee or liquidator of the Borrower or of all or substantially all of the assets of the Borrower shall be appointed in any proceeding brought against the Borrower and shall not be discharged within thirty (30) days of such appointment; or if the Borrower shall consent to or acquiesce in such appointment; or if any property of the Borrower shall be levied upon or attached 3