Dispute between Pxxxxxx Xxxxxxxxx and Prime EFS Sample Clauses

Dispute between Pxxxxxx Xxxxxxxxx and Prime EFS. By letter dated October 9, 2020, attorneys representing Pxxxxxx Xxxxxxxxx allege that Prime EFS is in default of its payment obligations under a “10% Senior Secured Demand Promissory Note” issued February 13, 2019, in the principal amount of $165,000, and under a second promissory note issued April 24, 2019 in the principal amount of $55,000. In the demand, the attorneys for Mx. Xxxxxxxxx allege the total balance owed, including interest, is $332,702.84 and that interest is continuing to accrue on each promissory note. In the demand, the attorneys for Mx. Xxxxxxxxx also contend that the Company is jointly and severally liable with Prime EFS for this balance. In the demand, the attorneys for Mx. Xxxxxxxxx also contend that the great bulk ($276,169) of the alleged balance due arises under the “10% Senior Secured Demand Promissory Note” issued February 13, 2019. However, this promissory note is, by its express terms, governed by New York law, and, in the opinion of Prime EFS’s counsel, such note is usurious on the face of it and unenforceable. Further, in the opinion of counsel, formed after reasonable inquiry, neither promissory note is enforceable against any person or entity other than Prime EFS. If, as threatened, Mx. Xxxxxxxxx files suit for nonpayment under either or both promissory notes, it is anticipated that the defendant(s) will mount a vigorous defense to the action.
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