Agenda - Council - 11/13/2012 - Laserfiche WebLink

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LOAN AGREEMENT 1 Parties. The parties to this Agreement are as follows: City of Ramsey, a Minnesota Municipal Corporation, 7550 Sunwood Drive NW, Ramsey, Minnesota 55303, (hereinafter referred to as "Lender"). Koru Fitness, Inc., a Minnesota Corporation, 16158 Iodine Street NW, Ramsey, Minnesota 55303, (hereinafter referred to as "Borrower"). Nicole Kutches whose address is 16158 Iodine Street NW, Ramsey, Minnesota 55303, (hereinafter referred to as "Guarantor"). Gary Nereson whose address is 13415 NW Heather Street, Andover, Minnesota 55304, (hereinafter referred to as "Guarantor"). 2. Date of Agreement: The date of this Agreement is November 13, 2012. 3. Term of this Agreement. The term of this Agreement shall be from the date of this Agreement set forth above and continue thereafter until all indebtedness has been paid in full. 4. Purpose of this Agreement. Borrower has requested credit accommodations from Lender to which Lender has agreed. Lender has granted to Borrower the following credit accommodations, on the conditions set forth herein: Term Loan of Thirty Four Thousand Five Hundred and 00/100 Dollars ($34,500.00) to be used as working capital (hereinafter referred to as the "Loan"). 5. Promissory Note. In consideration of the receipt of the Loan, Borrower shall repay to the Lender the Loan pursuant to the terms of the 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 3.25% per annum; Principal and Interest payments of $337.13 per month beginning January 1, 2013 and continuing on the first day of each month thereafter, until December 31, 2023, 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. 6. Secured Collateral. The Note shall be secured by a Security Interest in all business assets owned by Borrower (the "Collateral"). The Collateral shall be located at 16158 Iodine Street NW, Ramsey, MN.