Resolution - #81-191 - 11/25/1981

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This Note is issued by the City to provide funds for a Project, as defined in Section 474.02, Subdivision l(a), Minnesota Statutes, consistin9 of a new office-%~arehouse building on real estate located within the City, under a Loan Agreement, of even date herewith, between the City and Alan C. Phillips (the "~orrower"), and'this Note is further issued pursuant to and in full compliance with the Constitution and laws of the State of lvlinnesota, particularly Chapter 474, I~Iinnesota Statutes, and pursuant to resolution of the City Council duly adopted on November 25, 1981 (the "Resolution"). This ~ote is secured by the following, all of even date herewith: an assignment of the Loan Agreement by the City to the Lender; a ~.'~ortgage, Security Agreement and Fixture Financing Staten~ent (the "Mortgage") between the Borrower, as Mortgagor, and the Lender, as [~ortgagee; an Assign~aent of Leases and Rents (the "Assignment of Leases and Rents") from the Borrower to the Lender and a 9uaranty 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 A9reement'') . 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 ~'4aturity Date be extended beyond March 1, 1992. Except for regular monthly principal amortization payments and except as set forth in ~]e following paragraph, 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 prepa~aent fee of 1% of the outstanding principal balance of this Note. This Note is 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. Ail prepayments hereunder shall be first applied to accrued interest and ~e remainder thereof to the Principal Balance. A prepayment which does not result in the entire Princi- pal Balance and interest ~]ereon and any applicable prepayment premium bein9 paid in full shall be applied to installments of principal in the inverse order of their maturity but shall not defer the due date of any monthly payment due hereunder which pavements shall continue until the entire Principal Balance has been paid. Notice of prepayment of this Note in whole or in part shall be given in accordance with the terms of the Resolution. 9