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AMERICAN CHURCH MORTGAGE COMPANY BEACON BANK
00000 XXXXXX XXXXXX DRIVE 00000 XXXXXXX XXXXX Xxxx Xxxxxx
XXXXXXXXXX, XX 00000 XXXXXXXXX, XX 00000 1039073
Date
03-18-2002
Maturity Date
BORROWERS NAME AND ADDRESS LENDERS NAME AND ADDRESS 08-01-2003
I includes each borrower above, jointly and You means the lender, its successors and assigns. Loan Amount $ 2,000,000.00
severally Renewal Of
TAX ID # 00-0000000
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For value received, I promise to pay to you, or your order, at your address listed above the PRINCIPAL sum of TWO MILLION AND
NO/100
Dollars $ 2,000,000.00
|_| Single Advance: I will receive all of this principal sum on________________________________________________ . No additional
advances are contemplated under this note.
|X| Multiple Advance: The principal sum shown above is the maximum amount of principal I can borrow under this note. On
03-18-2002
I will receive the amount of $ _______________________________________________ and future principal
advances are contemplated.
Conditions: The conditions for future advances are ________________
|X| Open End Credit: You and I agree that I may borrow up to the maximum principal sum more than one time. This feature is
subject to all other
conditions and expires on 08-01-2003______________________________________________________________.
|_| Closed End Credit: You and I agree that I may borrow (subject to all other conditions) up to the maximum principal sum
only one time.
INTEREST: I agree to pay interest on the outstanding principal balance from 03-18-2002______________________________________ at
the rate of 5.250 %
per year until 03-19-2002.
|X| Variable Rate: This rate may then change as stated below.
|X| Index Rate: The future rate will be 0.500 PERCENT ABOVE the following index rate: THE HIGHEST RATE ON
CORPORATE LOANS POSTED BY AT
LEAST 75% OF THE USAS THIRTY LARGEST BANKS KNOWN AS THE WALL STREET JOURNAL PRIME RATE. THE RESULT OF THIS CALCULATION
WILL BE ROUNDED
TO THE NEAREST 0.125
|_| No Index: The future rate will not be subject to any internal or external index. It will be entirely in your control.
|X| Frequency and Timing: The rate on this note may change as often as EVERY DAY BEGINNING 03-19-2002 .
A change in the interest rate will take effect ON THE SAME DAY .
|_| Limitations: During the term of this loan, the applicable annual interest rate will not be more than
% or less than___%. The rate may not change more than
_____________________________________________________________% each .
Effect of Variable Rate: A change in the interest rate will have the following effect on the payments:
|X| The amount of each scheduled payment will change. |X| The amount of the final payment will change.
|_| .
ACCRUAL METHOD: Interest will be calculated on a ACTUAL/360 basis.
POST MATURITY RATE: I agree to pay interest on the unpaid balance of this note owing after maturity, and until paid in full, as
stated below:
|X| on the same fixed or variable rate basis in effect before maturity (as indicated above).
|_| at a rate equal to .
|X| LATE CHARGE: If a payment is made more than 10 days after it is due, I agree to pay a late charge of 5.000%
OF THAT LATE AMOUNT .
|X| ADDITIONAL CHARGES: In addition to interest, I agree to pay the following charges which |_| are |X| are not included
in the principal amount
above: $3,000.00 LOAN FEE .
|_| AUTHORITY: The interest rate and other charges for this loan are authorized by .
PAYMENTS: I agree to pay this note as follows:
ON DEMAND, BUT IF NO DEMAND IS MADE THEN MONTHLY PAYMENTS OF ACCRUED INTEREST CALCULATED ON THE AMOUNT OF CREDIT OUTSTANDING
BEGINNING ON 04-01-2002 AND PRINCIPAL DUE ON 08-01-2003.
PURPOSE: The purpose of this loan is WORKING CAPITAL LINE OF CREDIT.
ADDITIONAL TERMS:
(page 1 of 3)
SECURITY
SECURITY INTEREST: I give you a security interest in all of the Property described below that I own or have sufficient rights in
which to transfer an interest, now or in the future, wherever the Property is or will be located, and all proceeds and products
of the Property. Property includes all parts, accessories, repairs, replacements, improvements, and accessions to the
Property; any original evidence of title or ownership; and all obligations that support the payment or performance of the
Property. Proceeds includes anything acquired upon the sale, lease, license, exchange, or other disposition of the Property;
any rights and claims arising from the Property; and any collections and distributions on account of the Property.
|_| Accounts and Other Rights to Payment: All rights to payment, whether or not earned by performance, including, but not
limited to payment for property or services sold leased rented, licensed, or assigned. This includes any rights and
interests (including all liens) which I have by law or agreement against any account debtor or obligor.
|_| Inventory: All inventory held for ultimate sale or lease, or which has been or will be supplied under contracts of
service or which are raw materials, work in process, or materials used or consumed in my business.
|_| Equipment: All equipment including, but not limited to, machinery, vehicles, furniture, fixtures, manufacturing
equipment, farm machinery and equipment, shop equipment, office and record keeping equipment, parts, and tools, The Property
includes any equipment described in a list or schedule I give to you, but such a list is not necessary to create a valid
security interest in all of my equipment.
|_| Instruments and Chattel Paper: All instruments, including negotiable instruments and promissory notes and any other
writings or records that evidence the right to payment of a monetary obligation, and tangible and electronic chattel paper.
|_| General Intangibles: All general intangibles including, but not limited to, tax refunds, patents and applications for
patents, copyrights, trademarks, trade secrets, goodwill, trade names, customer lists, permits and franchises, payment
intangibles, computer programs and all supporting information provided in connection with a transaction relating to computer
programs, and the right to use my name.
|_| Documents: All documents of title including, but not limited to, bills of lading, dock warrants and receipts, and
warehouse receipts.
|_| Farm Products and Supplies: All farm products including, but not limited to, all poultry and livestock and their young,
along with their produce, products, and replacements; all crops, annual or perennial, and all products of the crops; and all
feed, seed, fertilizer, medicines, and other supplies used or produced in my farming operations.
|_| Government Payments and Programs: All payments, accounts, general Intangibles, and benefits including, but not limited
to, payments in kind, deficiency payments, letters of entitlement, warehouse receipts, storage payments, emergency
assistance and diversion payments, production flexibility contracts, and conservation reserve payments under any
preexisting, current, or future federal or state government program.
|_| Investment Property: All investment property including, but not limited to, certificated securities, uncertificated
securities, securities entitlements, securities accounts, commodity contracts, commodity accounts, and financial assets,
|_| Deposit Accounts: All deposit accounts including, but not limited to, demand, time, savings, passbook, and similar
accounts.
|X| Specific Property Description: The Property includes, but is not limited by. the following:
CHURCH BONDS (SAFEKEPT @ BEACON BANK)
If this agreement covers timber to be cut, enter real estate description and record owner information:
The Property will be used for a |_| personal |X| business |_| agricultural |_| ___ purpose.
Borrower/Owner State of organization/registration (if applicable)
ADDITIONAL TERMS OF THE SECURITY AGREEMENT
GENERALLY - This agreement secures this note and any other debt I have with you, now or later. However, it will not secure other
debts if you fail with respect to such other debts, to make any required disclosure about this security agreement or if you fail
to give any required notice of the right of rescission. If property described in this agreement is located in another state, this
agreement may also, in some circumstances, be governed by the law of the state in which the Property is located.
NAME AND LOCATION - My name indicated on page 1 is my exact legal name, If I am an individual, my address is my principal
residence. If I am not an individual, my address is the location of my chief executive offices or sole place of business, If I am
an entity organized and registered under state law, my address is located in the state in which I am registered, unless otherwise
indicated on page 2. I will provide verification of registration and location upon your request. I will provide you with at least
30 days notice prior to any change in my name, address, or state of organization or registration.
OWNERSHIP AND DUTIES TOWARD PROPERTY - I represent that I own all of the Property, or to the extent this is a purchase money
security interest I will acquire ownership of the Property with the proceeds of the loan. I will defend it against any other
claim. Your claim to the Property is ahead of the claims of any other creditor. I agree to do whatever you require to protect your
security interest and to keep your claim in the Property ahead of the claims of other creditors. I will not do anything to harm
your position. I will not use the Property for a purpose that will violate any laws or subject the Property to forfeiture or
seizure.
I will keep books, records and accounts about the Property and my business in general. I will let you examine these records at
any reasonable time. I will prepare any report or accounting you request, which deals with the Property.
I will keep the Property in my possession and will keep it in good repair and use it only for the purpose(s) described on page
1 of this agreement. I will not change this specified use without your express written permission. I represent that I am the
original owner of the Property and, if I am not, that I have provided you with a list of prior owners of the Property.
I will keep the Property at my address listed on page 1 of this agreement, unless we agree I may keep it at another location.
If the Property is to be used in another state, I will give you a list of those states. I will not try to sell the Property unless
it is inventory or I receive your written permission to do so. If I sell the Property I will have the payment made payable to the
order of you and me.
You may demand immediate payment of the debt(s) if the debtor is not a natural person and without your prior written consent;
(1) a beneficial interest in the debtor is sold or transferred, or (2) there is a change in either the identity or number of
members of a partnership, or (3) there is a change in ownership of more than 25 percent of the voting stock of a corporation.
I will pay all taxes and charges on the Property as they become due. You have the right of reasonable access in order to
inspect the Property. I will immediately inform you of any loss or damage to the Property.
If I fail to perform any of my duties under this security agreement, or any mortgage, deed of trust, lien or other security
interest, you may without notice to me perform the duties or cause them to be performed. Your right to perform for me shall not
create an obligation to perform and
your failure to perform will not preclude you from exercising any of your other rights under the law or this security agreement.
PURCHASE MONEY SECURITY INTEREST - For the sole purpose of determining the extent of a purchase money security interest arising
under this security agreement: (a) payments on any nonpurchase money loan also secured by this agreement will not be deemed to
apply to the Purchase Money Loan, and (b) payments on the Purchase Money Loan will be deemed to apply first to the nonpurchase
money portion of the loan, if any, and then to the purchase money obligations in the order which the items of collateral were
acquired or if acquired at the same time, in the order selected by you. No security interest will be terminated by application of
this formula. Purchase Money Loan means any loan the proceeds of which, in whole or in part, are used to acquire any collateral
securing the loan and all extensions, renewals, consolidations and refinancing of such loan.
PAYMENTS BY LENDER - You are authorized to pay, on my behalf, charges I am or may become obligated to pay to preserve or protect
the secured property (such as property insurance premiums). You may treat those payments as advances and add them to the unpaid
principal under the note secured by this agreement or you may demand immediate payment of the amount advanced.
INSURANCE - I agree to buy insurance on the Property against the risks and for the amounts you require and to furnish you
continuing proof of coverage. I will have the insurance company name you as loss payee on any such policy. You may require added
security if you agree that insurance proceeds may be used to repair or replace the Property. I will buy insurance from a firm
licensed to do business in the state where you are located. The firm will be reasonably acceptable to you. The insurance will last
until the Property is released from this agreement. If I fail to buy or maintain the insurance (or fail to name you as loss payee)
you may purchase it yourself.
WARRANTIES AND REPRESENTATIONS - If this agreement includes accounts, I will not settle any account for less than its full value
without your written permission. I will collect all accounts until you tell me otherwise. I will keep the proceeds from all the
accounts and any goods which are returned to me or which I take back in trust for you. I will not mix them with any other property
of mine. I will deliver them to you at your request. If you ask me to pay you the full price on any returned items or items
retaken by myself. I will do so. You may exercise my rights with respect to obligations of any account debtors, or other persons
obligated on the Property, to pay or perform, and you may enforce any security interest that secures such obligations.
Any person who signs within this box does so to give you a security interest in the Property described on this page.This person does
not promise to pay the note. I as used in this security agreement will include the borrower and any person who signs within this
box.
Date
Signed
page (2 of 3)
If this agreement covers inventory. I will not dispose of it except in my ordinary course of business at the fair market value
for the Property, or at a minimum price established between you and me.
If this agreement covers farm products I will provide you, at your request, a written list of the buyers, commission merchants
or selling agents to or through whom I may sell my farm products. In addition to those parties named on this written list, I
authorize you to notify at your sole discretion any additional parties regarding your security interest in my farm products. I
remain subject to all applicable penalties for selling my farm products in violation of my agreement with you and the Food
Security Act. In this paragraph the terms farm products, buyers, commission merchants and selling agents have the meanings given
to them in the Federal Food Security Act of 1985.
If this agreement covers chattel paper or instruments, either as original collateral or proceeds of the Property, I will note
your interest on the face of the chattel paper or instruments.
REMEDIES I will be in default on this security agreement if I am in default on any note this agreement secures or if I fail to
keep any promise contained in the terms of this agreement. If I default, you have all of the rights and remedies provided in the
note and under the Uniform Commercial Code. You may require me to make the secured property available to you at a place which is
reasonably convenient. You may take possession of the secured property and sell it as provided by law. The proceeds will be
applied first to your expenses and then to the debt. I agree that 10 days written notice sent to my last known address by first
class mail will be reasonable notice under the Uniform Commercial Code. My current address is on page 1.
facilitate, and otherwise assist you in connection with obtaining possession of or control over the Property for purposes of
perfecting your security interest under the Uniform Commercial Code.
ADDITIONAL TERMS OF THE NOTE
DEFINITIONS As used on pages 1 and 2, |X| means the terms that apply to this loan. I, me or my means each Borrower who
signs this note and each other person or legal entity (including guarantors, endorsers, and sureties) who agrees to pay this note
(together referred to as us ). You or your means the Lender and its successors and assigns.
APPLICABLE LAW - The law of the state of Minnesota will govern this agreement. Any term of this agreement which is contrary to
applicable law will not be effective, unless the law permits you and me to agree to such a variation. If any provision of this
agreement cannot be enforced according to its terms, this fact will not affect the enforceability of the remainder of this
agreement. No modification of this agreement may be made without your express written consent. Time is of the essence in this
agreement.
PAYMENTS - Each payment I make on this note will first reduce the amount I owe you for charges which are neither interest nor
principal. The remainder of each payment will then reduce accrued unpaid interest, and then unpaid principal. If you and I agree
to a different application of payments, we will describe our agreement on this note. I may prepay a part of, or the entire balance
of this loan without penalty, unless we specify to the contrary on this note. Any partial prepayment will not excuse or reduce any
later scheduled payment until this note is paid in full (unless, when I make the prepayment, you and I agree in writing to the
contrary).
INTEREST - Interest accrues on the principal remaining unpaid from time to time, until paid in full. If I receive the principal in
more than one advance, each advance will start to earn interest only when I receive the advance. The interest rate in effect on
this note at any given time will apply to the entire principal sum outstanding at that time. Notwithstanding anything to the
contrary, I do not agree to pay and you do not intend to charge any rate of interest that is higher than the maximum rate of
interest you could charge under applicable law for the extension of credit that is agreed to in this note (either before or after
maturity). If any notice of interest accrual is sent and is in error, we mutually agree to correct it, and if you actually collect
more interest than allowed by law and this agreement, you agree to refund it to me.
INDEX RATE - The index will serve only as a device for setting the interest rate on this note. You do not guarantee by selecting
this index, or the margin, that the interest rate on this note will be the same rate you charge on any other loans or class of
loans you make to me or other borrowers.
POST MATURITY RATE - For purposes of deciding when the Post Maturity Rate (shown on page 1) applies, the term maturity means
the date of the last scheduled payment indicated on page 1 of this note or the date you accelerate payment on the note, whichever
is earlier.
SINGLE ADVANCE LOANS - If this is a single advance loan, you and I expect that you will make only one advance of principal.
However, you may add other amounts to the principal if you make any payments described in the PAYMENTS BY LENDER paragraph on
page 2.
MULTIPLE ADVANCE LOANS - If this is a multiple advance loan, you and I expect that you will make more than one advance of
principal. If this is closed end credit, repaying a part of the principal will not entitle me to additional credit.
SET-OFF - I agree that you may set off any amount due and payable under this note against any right I have to receive money from
you.
Right to receive money from you means:
(1) any deposit account balance I have with you;
(2) any money owed to me on an item presented to you or in your possession for collection or exchange; and
(3) any repurchase agreement or other nondeposit obligation.
Any amount due and payable under this note means the total amount of which you are entitled to demand payment under the terms
of this note at the time you set off. This total includes any balance the due date for which you properly accelerate under this
note.
If my right to receive money from you is also owned by someone who has not agreed to pay this note, your right of set-off will
apply to my interest in the obligation and to any other amounts I could withdraw on my sole request or endorsement. Your right of
set-off does not apply to an account or other obligation where my rights are only as a representative. It also does not apply to
any Individual Retirement Account or other tax-deferred retirement account.
You will not be liable for the dishonor of any check when the dishonor occurs because you set off this debt against any of my
accounts. I agree to hold you harmless from any such claims arising as a result of your exercise of your rights to set-off.
DEFAULT I will be in default if any one or more of the following occur: (1) I fail to make a payment on time or in the amount
due; (2) I fail to keep the Property insured, if required; (3) I fail to pay, or keep any promise, on any debt or agreement I have
with you; (4) any other creditor of mine attempts to collect any debt I owe him through court proceedings; (5) I die, am declared
incompetent, make an assignment for the benefit of creditors, or become insolvent (either because my liabilities exceed my assets
or I am unable to pay my debts as they become due); (6) I make any written statement or provide any financial information that is
untrue or inaccurate at the time it was provided; (7) I do or fail to do something which causes you to believe you will have
difficulty collecting the amount I owe you; (8) any collateral securing this note is used in a manner or for a purpose which
threatens confiscation by a legal authority; (9) I change my name or assume an additional name without first notifying you before
making such a change; (10) I fail to plant, cultivate and harvest crops in due season; (11) any loan proceeds are used for a
purpose that will contribute to excessive erosion of highly erodible land or to the conversion of wetlands to produce an
agricultural commodity, as further explained in 7 C.F.R. Part 1940, Subpart G, Exhibit M.
REMEDIES - If I am in default on this note you have, but are not limited to, the following remedies:
(1) You may demand immediate payment of all I owe you under this note (principal, accrued unpaid interest and other accrued
unpaid charges).
(2) You may set off this debt against any right I have to the payment of money from you, subject to the terms of the
SET-OFF paragraph herein.
(3) You may demand security, additional security, or additional parties to be obligated to pay this note as a condition for
not using any other remedy.
(4) You may refuse to make advances to me or allow purchases on credit by me.
(5) You may use any remedy you have under state or federal law.
(6) You may make use of any remedy given to you in any agreement securing this note.
By selecting any one or more of these remedies you do not give up your right to use later any other remedy. By waiving your
right to declare an event to be a default, you do not waive your right to consider later the event a default if it continues or
happens again.
COLLECTION COSTS AND ATTORNEYS FEES I agree to pay all costs of collection, replevin or any other or similar type of cost if I
am in default. In addition, if you hire an attorney to collect this note. I also agree to pay any fee you incur with such attorney
plus court costs (except where prohibited by law). To the extent permitted by the United States Bankruptcy Code, I also agree to
pay the reasonable attorneys fees and costs you incur to collect this debt as awarded by any court exercising jurisdiction under
the Bankruptcy Code.
WAIVER I give up my rights to require you to do certain things. I will not require you to:
(1) demand payment of amounts due )presentment);
(2) obtain official certification of nonpayment (protest); or
(3) give notice that amounts due have not been paid (notice of dishonor).
I waive any defenses I have based on suretyship or impairment of collateral.
OBLIGATIONS INDEPENDENT - I understand that I must pay this note even if someone else has also agreed to pay it (by, for example,
signing this form or a separate guarantee or endorsement). You may xxx me alone, or anyone else who is obligated on this note, or
any number of us together, to collect this note. You may without notice release any party to this agreement without releasing any
other party. If you give up any of your rights, with or without notice, it will not affect my duty to pay this note. Any extension
of new credit to any of us, or renewal of this note by all or lees than all of us will not release me from my duty to pay it. (Of
course, you are entitled to only one payment in full.) I agree that you may at your option extend this note or the debt
represented by this note, or any portion of the note or debt, from time to time without limit or notice and for any term without
affecting my liability for payment of the note. I will not assign my obligation under this agreement without your prior written
approval.
FINANCIAL INFORMATION - I agree to provide you, upon request, any financial statement or information you may deem necessary. I
warrant that the financial statements and information I provide to you are or will be accurate, correct and complete.
SIGNATURES: I AGREE TO THE TERMS OF THIS NOTE (INCLUDING THOSE ON PAGES 1 AND 2). I have received a copy on todays date.
AMERICAN CHURCH MORTGAGE COMPANY
/s/ Xxxxxx X. Xxxxx
---------------------------
XXXXXX X. XXXXX, PRESIDENT
SIGNATURE FOR LENDER:
/s/ Xxxxx Xxxxxx
----------------------------
XXXXX XXXXXX, VICE PRESIDENT
(page 3 of 3)
