Agenda - Council - 08/12/2008 - Laserfiche WebLink

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Loan Agreement Issuer: The City of Ramey Lender: The City of Ramsey, a Municipal corporation Borrower: CLEAR CHOICE COUNTERTOPS, INC., a Minnesota corporation Dated: , 2008 Principal Amount:. $24,300.00 1. Receipt. Clear Choice Countertops, Inc. ("Borrower") hereby acknowledges that it has received from The City of Ramsey ("Lender") the sum of Twenty Four Thousand Three Hundred and 00/100 Dollars ($24,300.00) (the "Loan Proceeds"). 2. Promissory Note. In consideration of the receipt of the Loan Proceeds, Borrower shall repay to the Lender the Principal Amount pursuant to the terms ofthe-Promissory Note of even date (the "Note"), the form of which is attached hereto as Exhibit A and which terms include the following: interest at a rate of 6.00%; Principal and Interest payments of $469.79 per month beginning 1, 2008 and continuing on the first day of each month thereafter, until 1, 2013, on which day the- entire remaining principal balance plus accrued interest shall be due and payable in full; the Note may be prepaid in full at any time during the loan term with no prepayment penalty, subject only to the requirement that the Borrower provide Lender with at least 30 days written notice of the intent to prepay the obligation. Partial prepayments will not be allowed. Note Security. The Note shall be secured by a Security Agreement and the Personal Guarantee referenced in paragraph 4. below both executed by Borrower and of even date, and by a UCC Fixture Financing Statement. The collateral for the Security Agreement is that certain piece of equipment described in Paragraph 5. below. 4. Personal Guarantees. The Note shall be personally guaranteed by Matthew F. Selmer, .principal of Borrower. The form of the said personal. guarantees is attached hereto as Exhibit B. 5. Use of Proceeds. The funds advanced by Lender .shall be used by the Borrower for financing of the purchase of that certain piece of equipment described as one (1) park Industries Sierra Bridge Sawa Serial #3-03-1244 located at 13915 Radium Street NW, Suite C, Ramsey, MN 55303: 6. Covenants and Warranties. Borrower covenants, represents and warrants to the Lender as follows that during the term of the Note: A. Borrower will maintain policies of product liability and general liability insurance in such amounts and with such insurers as are reasonably satisfactory to Lender B. Borrower will locate its business operations and locate the Collateral at 13915 Uranium Street NW, Suite. C, Ramsey, MN 55303, so long as any balance due and owing to Lender pursuant to the Note. All financial statements and other information relating to the financial condition of Borrower which have been -84-