Agenda - Council - 09/26/2017 - Laserfiche WebLink

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EXHIBIT B-1 NOTE (LHIA Funds) $100,000.00 Minneapolis, Minnesota , 2017 FOR VALUE RECEIVED, the undersigned (the "Borrower"), promises to pay to the order of the City of Ramsey, a Minnesota municipal corporation (the "Lender"), or its assigns, the sum of One Hundred Thousand and No/100 Dollars ($100,000.00), without interest on the unpaid balance until paid. No interest will accrue on this loan. Said sum is made available to Borrower pursuant to the terms of a Loan Agreement dated of even date herewith (the "Loan Agreement") between Lender and Borrower to enable Borrower to acquire and construct a 54-unit, affordable rental housing project located at 7562 146th Avenue NW, Ramsey, Minnesota (the "Project"). The entire principal amount of this Note shall be due and payable on or before December 31, 2057; provided, however, that the entire outstanding balance will be immediately due and payable upon the occurrence of an Event of Default under Section 4.01 of the Mortgage. Upon the occurrence of one of the events specified above (a "Default"), the Lender shall mail notice to the Borrower at the address listed in the Loan Agreement specifying: (1) the Default; (2) the action required to cure such Default; (3) a date not less than thirty (30) days from the date the notice is mailed to the Borrower by which date such Default must be cured; and (4) that failure to cure such Default within thirty (30) days after the notice (or, if the Default is not capable of being cured within thirty (30) days, then within such longer period, up to a maximum of one hundred eighty (180) days, as may be reasonably needed to cure the Default, provided the Borrower initiates corrective action within thirty (30) days after the notice and diligently, continually and in good faith works to effect a cure as soon as possible) may result in acceleration of the Loan. This Note may be prepaid in whole or in part at any time without penalty or premium. If suit is instituted by Lender, its successors or assigns, to recover on this Note, the Borrower agrees to pay all costs of collection, including reasonable attorney's fees and costs. This Note is secured by a Combination Mortgage Security Agreement and Fixture Financing Statement of even date herewith (the "Mortgage") from Borrower in favor of Lender, duly filed for record in the office of the County Recorder and/or the Registrar of Titles in and for Anoka County in the State of Minnesota, and reference is made to the Mortgage for the rights of the Lender as to the acceleration of the indebtedness evidenced by this Note. Except in the case of fraud or willful misconduct, no recourse shall be had for the payment of principal of, or interest on, this Note against the Borrower or any partner, legal representative, heir, estate, successor or assign of any thereof. The Lender agrees to look solely to the collateral given as security for the payment of this Note. Demand, protest and notice of demand and protest are hereby waived, and the undersigned waives, to the extent authorized by law, any and all homestead and other exemption rights which otherwise would apply to the debt evidenced by this Note. US.113578590.01 B-1-1