06-20-11 Council Agenda - Laserfiche WebLink

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PROMISSORY NOTE $210,939.48 Little Canada, Minnesota Dated: June , 2011 FOR VALUE RECEIVED, the undersigned promises to pay to the City of Little Canada, a Municipal Corporation and Political Subdivision of the State of Minnesota, at 515 Little Canada Road, Little Canada, Minnesota 55117, or at such other places as the note holder may designate from time to time, the sum of Two Hundred Ten Thousand, Nine Hundred Thirty -Nine and 48/100 Dollars ($210,939A8) or so much thereof as has been advanced, in legal tender of the United States with interest on the unpaid principal balance calculated at the rate of 6% per annum computed on the basis of actual days elapsed in a year of 360 days from date until paid in the following installments: (a) Monthly payments consisting of interest only accrued on advances hereunder shall commence on the — day of , 20_, and continue in said amount on the same day of each and every month thereaf- ter until the payment due on , 20 (b) Commencing on the day of , 20 —, and continuing on the same day of each and every month thereafter, in equal monthly installments of principal and interest shall be made in an amount sufficient to frilly amortize the then principal balance over a fourteen (14) year term front and after July 2011, until the payment clue on June _, 2016, at which time the then remaining principal balance and all unpaid accrued interest shall be due and payable in full. Such installments shall be applied initially against interest and thereafter in reduction of principal. This is a closed -end multiple advance note. The principal sum shown above is the maximum amount of principal to be borrowed under this Note. Future advances are contemplated in accordance with the terms of a Construction Loan Agreement of even date herewith (the "Loan Agreement "). The undersigned agrees to pay a late charge of five percent (5 %) of the payment amount for any payment received by the Holder more than ten (10) days after the due date (including any payment due and payable on the maturity date or sooner upon acceleration). The indebtedness evidenced by this Note may be prepaid at any time without penalty, any prepayments to be applied first to accrued interest and the balance to principal. Any prepayment shall be in addition to and not in lieu of monthly installments provided for herein, and shall be applied by holder in the inverse order of maturity. This Note shall be governed and construed in all respects according to the laws of the State of Minnesota. This Note is governed by the terms of the Loan Agreement, and 2