Agenda - Council - 11/25/1981 - Laserfiche WebLink

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! ! ! by fluctuations in the prime rate shall become effective auto- matically on the first day of the month following the month in which the prime rate of the First National Bank of Minneapolis effectively changes and shall be the Prime Rate in effect on the last day of the month in which the change occurs; provided, however, that this Note shall bear the same rate of interest at all times after maturity as it bore at maturity. Interest shall be computed on the basis of a 360 day year, but charged for the actual number of days principal is unpaid. I I I I I I I I I I I I I I I Principal and interest due hereunder shall be payable at the principal office of the Lender or at such other place as the Lender may designate in writing. This Note is issued by the City to provide funds for a Project, as defined in Section 474.02, Subdivision l(a), Minnesota Statutes, consisting of a new office-warehouse building on real estate located within the City, under a Loan Agreement, of even date herewith, between the City and Alan C. Phillips (the "Borrower"), and this Note is further issued pursuant to and in full compliance with the Constitution and laws of the State of Minnesota, particularly Chapter 474, Minnesota Statutes, and pursuant to resolution of the City Council duly adopted on November 24, 1981 (the "Resolution"). This Note is secured by the following, all of even date herewith: an assignment of the Loan Agreement by the City to the Lender; a Mortgage, Security Agreement and Fixture Financing Statement (the "Mortgage") between the Borrower, as Mortgagor, and the Lender, as Mortgagee; an Assignment of Leases and Rents (the "Assignment of Leases and Rents") from the Borrower to the Lender and a guaranty agreement (the "Guaranty") from Altron, Inc. and from Delores Phillips to the Lender. The disbursement of the proceeds of the loan covered by this Note is subject to the terms and conditions of a Disbursing Agreement of even date herewith between the Lender, the City and the Borrower (the "Disbursing Agreement"). The Lender may extend the times of payments of interest and/or principal on this Note, including the date of the Final Maturity Date, without notice to or consent of any party liable hereon and without releasing any such party. However, in no event may the Final Maturity Date be extended beyond April 1, 1992. No prepayment of this Note will be permitted prior to April 1, 1987. Thereafter, this Note may be prepaid in full at any time with a prepayment fee of 1% of the outstanding principal balance of this Note. This Note is further subject to prepayment, without a premium, in whole or in part, upon the occurrence of a Determination of Taxability or of certain events of damage, destruction or condemnation to the Project, as specified in the Loan Agreement and Resolution. 9