11-13-2002 Council Agenda - Laserfiche WebLink

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EXHIBIT C Pro Fo uia Promissory Note PROMISSORY NOTE $200,000.00 , 200 1. FOR VALUE RECEIVED, the undersigned, The Lodge at Little Canada LLC, a Minnesota limited liability company and The Village at Little Canada LLC, a Minnesota Limited Liability Company, (collectively, "Makers "), hereby jointly and severally promise to pay to the order of the City of Little Canada, a Minnesota municipal corporation (the "City ") the principal sum of TWO HUNDRED THOUSAND and No /100 Dollars ($200,000.00) (the "Indebtedness "). Makers are not obligated to pay the City interest on the Indebtedness unless Makers default in the performance of Maker's obligation to pay the Indebtedness, in full, on the Maturity Date. If Makers fail to pay the Indebtedness, in full, on or before the Maturity Date, interest accrues on the outstanding principal amount of the Indebtedness from the Maturity Date until the date the Indebtedness is paid in full at the rate of eight percent (8 %) per annum. Payments received after the Maturity Date will be used first to pay interest due pursuant to the preceding sentence with the balance, if any, credited against the outstanding principal amount of the Indebtedness. 2. Makers must pay the Indebtedness evidenced by this Note , in full, on the date three years from the date of this Note (the "Maturity Date "). 3. Notwithstanding the foregoing, so long as the Secretary of Housing and Urban Development ( "HUD ") or his /her successors or assigns, are the holders of the first mortgage on Lot 1, Block 1, VILLAGE SQUARE, Ramsey County, Minnesota (FHA Project No. ) (the "HUD Mortgage "), The Lodge at Little Canada LLC's liability for payments due under this Note may only be satisfied from surplus cash of said project, as the term surplus cash is defined in the Regulatory Agreement dated as of , 2002 between HUD and Maker (the "HUD Regulatory Agreement "). In any event, The Lodge at Little Canada LLC is obligated to pay all amounts due and owing under the terms of this Note without regard to the restrictions set forth in this paragraph 3 on , 2044. 4. This Note may be prepaid, without penalty, in whole or in part. All payments shall be applied first to accrued interest and then to principal. 5. All payments of principal and interest hereunder are payable in lawful money of the United States of America at 515 East Little Canada Road, Little Canada, Minnesota 55117 or at such other place as the holder hereof shall designate to Maker in writing. 6. Makers waive presentment, demand for payment, protest and notice of dishonor and agrees to pay all costs of collection, including reasonable attorneys' fees. I428339vRed V8 to V7; 1 I /I /02 C -1