02-28-2013 Council Agenda - Laserfiche WebLink

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UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF RAMSEY CITY OF LITTLE CANADA First Amendment to Educational Facilities Revenue Note, Series 2007 (St. John the Evangelist School Project) WHEREAS, on December 20, 2007, the City of Little Canada, Minnesota (the "Issuer ") issued its $1,800,000 Educational Facilities Revenue Note, Series 2007 (St. John the Evangelist School Project) (the "Original Note "), promising to pay BankCherokee (the "Lender "); and WHEREAS, pursuant to a Loan Agreement (the "Loan Agreement ") dated December 20, 2007 between the Issuer and St. John's Church of Little Canada, Minnesota, a Minnesota religious corporation (the "Borrower "), the Borrower agreed to repay the Original Note in specified amounts and at specified times sufficient to pay in full when due the principal of premium, if any, and interest on the Original Note; and WHEREAS, pursuant to a Pledge Agreement (the "Pledge Agreement ") dated December 20, 2007 between the Issuer and the Lender, the Issuer pledged and granted a security interest in all of its rights, title, and interest in the Loan Agreement to the Lender (except for certain rights of indemnification and to reimbursement for certain costs and expenses); and WHEREAS, the Lender and the Borrower have informed the Issuer that they have agreed to certain changes in the terms of the Original Note; and WHEREAS, pursuant to a resolution of the Issuer adopted on February 28, 2013 (the "Resolution "), the Issuer has agreed to the requested changes to the terms of the Original Note; and WHEREAS, this First Amendment is authorized to he attached to the Original Note to evidence the amendments made hereby. 1. The Original Note is hereby amended by deleting from the initial paragraph the phrase "December 20, 2027" and replacing it with "March 20, 2033." 2. The Original Note is hereby amended by deleting Section 2 in its entirety and replacing it with the following: 2. This Note shall bear interest at the rate of four and sixty -five hundredths percent (4.65 %) per annum (the "Note Rate ") from the date hereof and continuing thereafter until December 19, 2012. Commencing on December 20, 2012 and continuing through March 19, 2013, the Note Rate shall accrue on the outstanding principal balance at the rate of four percent (4.00 %) per annum. Commencing on March 20, 2013 and continuing through March 19, 2023, the Note Rate shall accrue on the outstanding principal balance at the rate of three and eighty -five hundredths percent (3.85 %) per annum. 5216651v2 8