Church Loans & Investments Trust
(A Real Estate Investment Trust)
January 27, 1999
The Biltmore Group of Louisiana, LLC
Attn: Xxxxxx Xxxxxxxx-Xxxxxx
000 Xxxxxxx Xx
Xxxx Xxxxxx, XX 00000
Re: Sedona, AZ Project
Dear Xxx. Xxxxxxxx-Xxxxxx:
Reference is made to the loan agreement made between Church Loans & Investments
Trust ("Church Loans") and The Biltmore Group of Louisiana, LLC ("Borrower")
FBO: Sedona, AZ dated October 16, 1998, This will serve as an addendum
to that loan agreement.
The addendum is as follows:
1. That should the proceeds from the sale of the bonds through MMR
Investment Bankers ("MMR") and other participating broker/dealers,
after the payment of the expenses associated with the bond offering
and the establishment of the first six months sinking fimd reserve,
be insufficient to pay the unpaid principal and interest upon the
loan committed herein at its maturity, at the option of the
Borrower the term of said loan shall be renewed and extended by
Church Loans as follows:
(a) The term of the loan shall be initially renewed and
extended for an additional period of one (1) year upon the
following terms and conditions:
(1) The Borrower shall be current upon all of its
outstanding debt obligations, to include, but not
necessarily restricted to all sinking fund payments
payable to the trustee in connection with the bonds
to be offered through MMR and other participating
broker/dealers, and all interest payments upon the
loan to be made by Church Loans to the Borrower under
the terms of this commitment.
5305 1-40 West XX Xxx 0000 Xxxxxxxx,XX 00000-0000
(000)000-0000 (000)000-0000 Fax (000)000-0000
The Biltmore Group of Louisiana, LLC
Attn: Xxxxxx Xxxxxxxx-Xxxxxx
West Monroe, LA
January 27, 1999
Page 2
(2) The amount of the loan to be renewed and extended
shall be the lesser of (i) the unpaid principal upon
the loan committed herein at maturity, or (ii) the
unpaid principal amount of all unsold bonds offered
through MMR and other participating broker/dealers
described above. Any principal amount of the loan
in excess of the amount of the unsold bonds must be
paid in full by Borrower.
(3) The interest rate upon the loan shall be at a
variable rate equal to 2% per annum in excess of the
"Prime Rate" of interest published by the Wall Street
Journal under the heading "Money Rates".
(4) The interest upon the unpaid principal balance of
the loan shall be payable monthly.
(5) The principal upon the loan shall be paid on or
before one year from date.
(6) The Borrower shall pay Church Loans a loan extension
fee equal to 2% (2 points) of the principal amount of
the loan.
(7) The total amount of the loan extended and the sold
bonds shall not exceed 66 2/3% of the appraised
market value of the collateral.
(b) If on the maturity of the one year extension, May 1, 2000,
should the proceeds from the sale of the bonds to be
offered by the Borrower through MMR and other participating
broker/dealers be insufficient to pay the unpaid principal
and interest upon the loan, then, at the option of the
Borrower, the principal amount of the loan extended in
regard to the Sedona issue, shall be renewed and extended
by Church Loans into a permanent loan upon the following
terms and conditions:
(1) The Borrower shall be current upon all of its
outstanding debt obligations, to include, but not
necessarily restricted to all sinking fund payments
payable to the trustee in connection with the bonds
to be offered through MMR and other participating
broker/dealers, and all interest payments upon the
loan to be made by Church Loans to the Borrower
under the terms of this commitment.
The Biltmore Group of Louisiana, LLC
Attn: Xxxxxx Xxxxxxxx-Xxxxxx
West Monroe, LA
January 27, 1999
Page 3
(2) The permanent loan shall bear interest at the same
rate as described in paragraph (a) (3) above.
(3) The amount of the permanent loan shall be payable
in equal, or as equal as possible due to the
variable rate of interest on the loan, monthly
installments of principal and interest over a
period of thirteen years, however, the loan shall
be due and payable in full, with interest, at the
date of the final maturity of the bonds. Borrower
shall have the right of the Borrower to prepay the
loan at any time without penalty.
(4) The Borrower shall pay to Church Loans an additional
loan renewal fee equal to 5% (5 points) of the
principal amount of the permanent loan.
(5) The loan shall continue to be secured on an equal
basis with the outstanding bonds to be issued by the
Borrower through MMR and other participating
broker/dealers upon all property to be given by the
Borrower to secure the loan committed herein.
(6) The total amount of the loan and sold bonds shall
not exceed 66 2/3% of the appraised market value of
the property.
(c) Until such time as the loans committed herein are paid in
full, the Borrower shall not further encumber the property
securing the payment of said loans, either by placing
additional mortgages or deeds of trust upon said property,
or by increasing the indebtedness of the Borrower under any
Trust Indenture, mortgage or deed of trust or other security
documents associated with the sale of bonds secured by
said property. Should the Borrower additionally encumber
the property securing the loans committed hereby prior to
their payment in full, Church Loans shall have the right to
declare the unpaid principal and interest upon said loans
immediately due and payable upon thirty days notice to the
Borrower.
(d) The term "bonds" as used herein shall mean and refer to the
series of bonds dedicated to the Sedona, Arizona project.
The Biltmore Group of Louisiana, LLC
Attn: Xxxxxx Xxxxxxxx-Xxxxxx
West Monroe, LA
January 27, 1999
Page 4
The acceptance of this addendum must be indicated by the Borrower's signing
and returning the original copy of this letter within fifteen (15) days
from the date hereof.
Sincerely yours,
/S/XXXXX XXXXXX
Xxxxx Xxxxxx
Manager of Operations
The above addendum has been agreed to and accepted by the undersigned
Managing Member of The Biltmore Group of Louisiana, LLC.
Date:
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