HomeMy WebLinkAboutResolution #1047
RESOLUTION NO. 1047
A RESOLUTION APPROVING AN AGREEMENT BETWEEN THE CITY OF CANTON ARID
LA ROMA PIZZA, INC., AND DIRECTING THE MAYOR AND CITY CLERK TO
EXECUTE AND DELIVER SAID LOAN AGREEMENT ON BEHALF OF THE CITY OF
CANTON
WHEREAS, the City of Canton has entered into negotiations with
La Roma Pizza, Inc. for a loan from the City's Enterprise Zone
Fund for the amount of $37,500.00, such funds to be made available
through the City's loan agreement with the U.S. Department of Health
and Human Services; and,
WHEREAS, the City Council of the City of Canton has reviewed the
terms of the proposed loan agreement, a copy of which is hereto
attached and made a part hereof as Exhibit A; and,
WHEREAS, the Canton City Council has determined that it is
desireable and in the best interest of the City of Canton to
approve said agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF CANTON, Fulton County, Illinois as follows:
1. That the Loan Agreement between the City of Canton and La
Roma Pizza, Inc., which is attached hereto and made a part hereof
as Exhibit A, is hereby approved, said Loan Agreement to be subject
to and effective pursuant to the terms and conditions therein set
forth.
2. That the Mayor and City Clerk are hereby authorized and
directed to execute and deliver said Loan Agreement on behalf of
the City of Canton.
3. That this Resolution shall be in full force and effect
immediately upon its passage by the City Council of the City of
Canton, Fulton County, Illinois and approval by the Mayor thereof.
PASSED by the City Council of the City of Canton, Fulton County,
Illinois at a regular meeting this 4th day of September ,
1984, upon a roll call vote as follows:
AYES: Aldermen Horr, May, Carl, Sarff, Savill, Hammond,
Kovachevich,
NAYS: None.
ABSENT: Alderman Workman
APPROVED:
.,
y
Donald E. Edwards, Mayor.
ATTEST:
`,
a y Whi s, City Clerk.
LOAN AGR~.II~IIIV'r
This agreement dated as of September 4 , 19 g4 is between the City
of Canton, an Illinois Municipal Corporation (hereinafter called "Lender"),
and r~ tz~na pizza Inc an Illinois corporation
(hereinafter called "Borrower"). In consideration of the mutual covenants and
agreements contained herein, Lender and Borrower agree as follows:
1. Loan Terms:
Lender agrees to loan the principal sum of Thirty-seven thousand five hundred dollars
($ x,500.00) (herinafter referred to as "Loan"), to be disbursed as hereinafter
provided, bearing interest at the rate of 9.0 percent per annum from the date
funds are advanced hereunder up to and including December 31, 1988, and at the
rate of 13.0 percent per annum thereafter for the remaining term of this loan
as more specifically set forth in paragraph 2 below. The term of the loan is
for 25 years from December 30, 1983.
This loan is evidenced by a promissory note of even date herewith (~hibit
1) made payable to the City of Canton, an Illinois Municipal Corporation.
Borrower agrees to use the loan and its proceeds solely for activities as set
forth in Lender's Rural Development Loan Fund (hereinafter called "ROLE")
application submitted to the Department of Health and Human Services/Office
of Community Services (herinafter called "OCS") (including any supplements
or mxlifications thereof) and in accordance with Lender's Loan Terms and
Conditions relating thereto, the terms and conditions of this Loan Agreement,
the Rules and Regulations (as they may be amended) governing the RDLF (45 CFR
1076.50), and all applicable Federal and State of Illinois laws, rules and
regulations.
2. Repayment:
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Repayment of this loan shall be made as follows:
2.1 Principal shall be paid in Fifty-six (56) equal
semi-annual installments of ($ 669.65
each commencing on
the 1st day of June/ 19 85 and continuing every six months
thereafter until said principal is fully paid.
2.2 Interest shall be paid on the unpaid principal balance at the rate
of 9.0 percent per annum with the first payment due on /December
1st, 19 84 and then on June 1st, and /December 1st of
each year until and including December 1st, 1988. After said period,
interest shall be paid on the unpaid balance in said semi-annual
installments at the rate of 13.0 percent per annum until said interest
and principal is fully paid.
2.3 Unpaid interest shall be added to principal and bear interest at
the sarre rate as rioted above for said principal. Interest shall be
considered unpaid if not received by Lender within 7 calendar days
following the due date.
2.4 Borrower shall pay a late charge of 6% of the payment due of principal
or interest if payment for any of these is not received within 7 calen-
dar days following the due date. The late charge shall be considered
unpaid if not received within 15 calendar days of the missed due date
for which it was imposed. Any unpaid late charge shall be added to
principal and bear interest at the same rate as noted above for said
principal. Acceptance of a late charge by Lender does not constitute
a waiver of default.
2.5 Borrower shall have the right to prepay any and all interest and princi-
pal at any time without penalty or additional interest.
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and State of Illinois Laws, rules and regulations.
2. Repayment:
Repayment of this loan shall be made as follows:
2.1 Principal shall be paid in Forty - eight (48)
equal semi-annual installments of ($ 781.25 ---------) each com-
mencing on the 1st day of ~/~~1985 and continuing every
six months thereafter until said principal is fully paid.
2.2 Interest shall be paid on the unpaid principal bal-
ance at the rate of 9.0 percent per annum with the first payment
due on s~l4rq~/December 1st, 19 84 and then on ~~~~/June 1st, and
~~i~~i/December lst of each year until and including December 1st,
1988. After said period, interest shall be paid on the unpaid
balance in said semi-annual installments at the rate of 13.0 percent
per annum until said interest and principal is fully paid.
2.3 Unpaid interest shall be added to principal and bear
interest at the same rate as noted above for said principal. Inter-
est shall be considered unpaid if not received by Lender within 7
calendar days following the due date.
2.4 Borrower shall pay a late charge of 6~ of the payment
due of principal or interest if payment for any of these is not
received within 7 calendar days following the due date. The late
charge shall be considered unpaid if not received within 15 calendar
days of the missed due date for which it was imposed. Any unpaid
late charge shall be added to principal and bear interest at the
same rate as noted above for said principal. Acceptance of a late
charge by Lender does not constitute a waiver of default.
2.5 Borrower shall have the right to prepay any and all
interestand principal at any time without penalty or additional interest.
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3. Certifications:
On or before the date of the loan disbursement, the Borrower shall submit
the following documentations to Lender:
3.1 A current copy of the Borrower's articles of incorporation or charter.
3.2 Certifications that there has been no material adverse change in
Borrower's financial condition or any condition which would adversely
affect the Borrower's ability to carry out the terms and conditions of
this agreement from the date of Borrower's initial loan application.-
3.3 If a corporation, a certified copy of Borrower's corporate resolution
authorizing and directing the execution and delivery by Borrower to
Lender of this agreement and all related documents.
4. Disbursement Procedure:
4.1 Disbursement shall take place after this loan agreement and the
promissory note (Exhibit 1) and Real Estate Mortgage (Exhibit 2) are
executed, and the dociunentation called for in paragraph 3 above and
any other conditions precedent to disbursement of funds under this
award are fully satisfied.
4.2 Thereafter, Lender inHr~ediately shall cause to be issued a check upon
Borrower's written request in the principal amount in paragraph 1
of this agreement.
4.3 Borrower shall notify the Lender of such date of disbursement in writing
not less than five (5) days prior to such date.
4.4 Borrower shall maintain a separate ledger and segregated account for
RDLF funds obtained hereunder.
4.5 Loan amounts shall retain their character as Lender assets while
in Lender's possession.
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5. Reporting Requirements:
Borrower understands that Lender is required to make annual, semi-annual,
and other periodic reports and audits to OCS pursuant to Lender's loan
agreement with OCS. Borrower agrees to make all of its books, accounts
and other financial data relating to this loan available to Lender, or,
Lender's authorized agents (to include Lender's auditors) at Borrower's
principal office in Canton, Illinois in support of Lender's requirement
to make such reports and audits. Borrower agrees to keep all books, accounts
and other financial data relating to this loan intact and available to
Lender, as aforesaid, for a period of four (4) years from the end of
Borrower's fiscal year of the last entxy in any such book, account or other
financial data.
6. Relending and Assignment:
6.1 Borrower shall not relend any portion of the loan funds received or
to be received from Lender.
6.2 Borrower shall not assign any right, title or interest in and to this
Agreement, or, to any security pledged in repayment of this loan
without first obtaining Lender's written consent thereto.
7. Default:
On the occurrence of any event of default as described below, Lender may
declare all or any portion of the debt and interest created hereby to be
immediately due and payable and may proceed to enforce its rights under
this Loan Agreement or any other instruments securing or relating to this
Loan and in accordance with the Law and regulations applicable hereto.
Any of the following may, without limitation, be regarded as an "event of
default" in the sole discretion of the Lender:
(A) Failure, inability or unwillingness of Borrower to carry out or
comply with the specific activities in its loan application as
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approved by Lender, or Lender's Loan Terms and Conditions, or an}'
tuns or conditions of this Loan Rgreermnt, or any applicable federal
or state laws, or with such OCS regulations as may became applicable
at any time.
(B) Failure of Borrower to pay any installrrnnt of principal or interest
on its promissory note to Lender when due as specified in paragraph
2 above.
(C) The occurrence of : (1) Borrower's becc~ni ng insolvent or barilcnipt, or
ceasing, being unable, or admitting in writing its inability, to pay
its debts as they mature, or making a general assignment with creditors;
(2) proceedings for the appointrr~nt of a receiver, trustee or liquidator
of Borrower, or of a substantial part of its assets, being authorized or
instituted by or against it; or (3) proceedings under any bankruptcy,
reorganizaticm, readjustment of debt, insolvency, dissolution, liquida-
ticm or other similar law of any jurisdiction being authorized or insti-
tuted by or against this Borrower.
(D) Sut~ni.ssicei or making of any report, staterr~nt, warranty, or representation
by Borrower or agent on its behalf to Lender or OCS in connection with
the financial assistance awarded hereunder which is false, incas~lete
or incorrect in any material respect.
(E) Failure of Borrower to remedy any -material adverse change in its
financial or other cc~dition arising since the date of this agreement,
which condition was an inducement to this loan.
(F) Any att~ript by Borrower to assign any right, title or interest in and to
this Agreerrnnt, or, to any security pledged in repayment of this loan
without first obtaining Lender's written consent thereto.
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8. Collateral:
The Borrowps pledges as collateral to secure its indebtedness under this
Loan Agreement, its portfolio of investments derived from the proceeds of
this loan award, together with such other security as Lender may re3uire,
not to exceed in value the total of principal and interest due under this
agreement.
9. Other Parties:
This Loan Agreerr~nt is not for the-benefit of third parties. Lender shall
not be under any obligation to any such parties, whether directly or
indirectly interested in the Loan Agreetent, to pay any charges or expenses
incident to compliance by Borrower with any of the duties or obligations
imposed hereby.
10. Costs and Expenses: •'
Borrower agrees to reimburse Lender for costs and expenses, court costs,
r~sonable attorney fees, and all• other out-of-pocket expenses paid by
Lender in enforcing the t~ and conditions of this agreement occassioned
by Borrower's failure to coi~ly with such tezms and conditions. Borrowps
hereby irrevocably consents that all such attorney fees, costs and expenses,
and out-of-pocket expenses may be included in any judc~~nt awarded to
Lender in any proceeding at law or in e3u.ity to enforce this agreement.
11. Retention and Creation of Jobs:
Lender and Borrower recognize and agree that the loan provided by Lender
to Borrower is in direct support of Borrower's expressed intention of
purchasing real property and improvements thereto, industrial machinery
and equipment, and other diverse property to be located within Lender's
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corporate limits. Both Lender and Borrower recognize and agree that
presently existing jobs are expected to be retained herety and/or new jobs
created. Borrower convenants and agrees to not remove jobs retained or
created by use of this loan frcgn Lender's corporate limits during the
term of the loan as expressed in Paragraph 1 or until all principal and
interest due hereunder be paid in full.
12. Notice:
Notice shall be given to any party hereto by United States mail, certified
mail, return receipt requested, and directed to the following addresses:
To Lender: City Clerk
City Building
210 East Chestnut street
Canton, Illinois 61520
Any notice given to the Lender shall include an informational copy, mailed
as aforesaid, and addressed to the attention of the City Attorney at the
above stated address.
To the Borrower: La Roma Pizza, Inc.
47 South Main Street
Canton, Illinois 61520
13. Successors and Assigns.:
The Loan Agreement shall be binding upon Borrower and its successors and
assigns and upon Lender and its successors and assigns, and shall survive
the closing of the Loan and disbursement of proceeds.
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14. Contingencies:
In addition to any foregoing contingency, loan funds will be disbursed
upon completion of all of the following in form and substance satisfactory to
Lender:
a. Borrower must provide Lender with written proof of a binding comnit-
mentfrom Midwestern Savings and Doan Associate for $40,000.00;
b. Borrower must execute and deliver to Lender a first security interest
in $20,000.00 of personal property to be located in or upon the premises
identified in Exhibit 2, all in form and substance satisfactory to
Lender.
15. Applicably Laws:.
Interpretation of the terms and provisions of this Loan Agreement shall be
in accordance with the laws of the State of Illinois.
16. Insurance:
Borrower agrees to keep the improvements now and hereafter upon the premises
set forth in Exhibit 2 insured against damage by fire, windstorm, and such other
hazards as the Lender may require to be insured against until the Loan is paid
in full, or, in the case of foreclosure until expiration of the period of redemp-
tion. The aggregate amount of such insurance shall not be less than the aggregate
sum of the unpaid principal of this Loan and accrued interest and penalties thereto
appertaining. Borrower shall provide Lender with a copy of such insurance policy
or policies and shall show the Lender as mortgagee and loss payee thereon.
IN WITNESS Wf~2EOF, Lender and Borrower have executed duplicate originals of
this Loan Agreement as of the date first above-mentioned.
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B~JRROWER:
La Roma Pizza, Inc., an Illinois
corporation
BY: ,
Its President
Date: September , 1984
Address: 47 South Main Street
Canton, Illinois 61520
Phone: (309) 647-6229
ATTEST:
Corporate Secretary ~
I~IIQDER:
City of Canton, an Illinois Municipal
corporation
BY:
Its Mayor
Date: September , 1984
Address: 210 East Chestnut Street
Canton, Illinois 61520
Phone: (309) 647-0065/0020
ATTEST:
City Clerk.
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(Exhibit 1)
NOTE
La Roma Pizza, Inc., an Illinois corporation,
promises to pay to the order of the CITY OF CANTON, an Illinois
municipal corporation, the sum of Thirty-seven Thousand Five Hundred Dollars
together with interest thereon at the rate of 9.0 $ per annum from
the date hereof to and including December 1 19~~._, and at
the rate of 13.0 $ per annum thereafter to and including November 30
2 008
PAYMENT SCHEDULE:
(a) PRINCIPAL: Principal shall be paid in Fifty-six(56) equal
semi-annual installments of $ 669.65 each commencing on
the 1st day of June 19 85 , and continuing every sir. months
thereafter until the principal sum of $371500.00 is paid in full.
(b) INTEREST: Interest shall be paid on the unpaid principal
balance at the rate of 9.0 $ per annum with the first payment due on
December 1 , l9 84 , and then on June 1st -and December 1st
of each year until and including December 1st 1988 - After such
period, interest shall be paid on the unpaid principal balance in said
semi-annual installments at the rate of _13.0 o per annum until said
interest and principal is fully paid.
Unpaid interest shall be added to principal and bear interest at
the same rate as noted-above for principal. Interest whall be con-
sidered unpaid if not received by the City of Canton within 7 calendar
days following the due date. La Roma Pizza, Inc. shall
have the right to prepay any nad all interest and principal at any
time without penalty or additional interest.
approved by City of Canton Resolution Number on
19 (as amended) as fully as though all the terms and conditions
of said Loan Agreement were fully set forth at this place verbatim.
This Note is specifically made subject to the terms and conditions
of a certain "Loan Agreement" between La Roma Pizza, Inc.
and the City-of Canton, dated as of September 4 , 1984 and _
To secure the payment of this Note, La Roma Pizza, Inc.
hereby irrevocably empowers any attorney at any time hereafter to
appear for us in any court in term time or vacation, and confess
judgment against us, each or any of us, including any guarantor:(s)
hereof, without process of this Note in favor of any legal holder,
for all sums owing hereon, interest, costs, and reasonable attorney's
fees, and to waive all right of appeal, release all errors and con-
sent to immediate execution.
DATED: As of this day of
19
LA ROMA PIZZA,~INC., an Illinois
corporation, ~~- -~ ~~
By: -
Its President and
ATTEST:
Corporate Secretary.
(Corporate Seal)
Its Vice-President
J
(Exhibit 1)
FOR .VALUE _RECEZVED, the undersigned, _ Rosolino Puleo _ .and
Salvatore Puleo _ .. __~ _ ' ..~ ._ __ ., ~ 'individually and
collectively .'. _ _ ~ . '. ~ ~- - ~ - ~_ ~. ~ - ' ., hereby guarantee the payment
of the foregoing Note at maturity or at any time thereafter, with
interest as specifies therein., waiving presentment, demand, notice,
protest, and diligence in collecting, and we each of us_hereby
irrevocably empower any attorney at any time hereafter to appear
for us, .either or any of us, in any court in tez~n time or in vacation,
and confess judgment against us, each or any of us, including any
within maker or makers, guarantor or guarantors hereof, without
process on this Note in favor of the legal holder, for said within
sum, interest, costs, and reasonable attorney's. fees, and to waive
all right of appeal, to release all errors and consent to i;rsnediate
execution.
DATED: As of this day of "' ~"'"" 19"" _'
Rosolino Puleo -~~a~ store u eo
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(Exhibit 2)
REAL ESTATE MORTGAGE
THIS INDENTURE WITNESSETH: That the undersigned, LaRoma _
Pizza -Inc an Illinois corporation of the City of Canton,
in the County of Fulton and State of Illinois, hereinafter referred
to as the "Mortgagor", does hereby MORTGAGE AND WARRANT to the CITY
OF CANTON, an Illinois municipal corporation, of the City of Canton,
in the County of Fulton and State of Illinois, hereinafter referred
to as the "Mortgagee", the f ollowing described real property, to-wit:
Part of Lot Number Two (2) of the Preliminary Plat
of the Enterprise Industrial District, dated July
17, 1984, being more particularily described as
follows: Commencing at the Southwest corner of
said Lot 2, thence running East along the South
line of said Lot 2 a distance of 217.8 feet to
a point; thence, running North and parallel to the
West line of said Lot 2 a distance of 200.00 feet
to a point on the North line of said Lot 2; thence,
running West along the North line of said Lot 2 a
distance of 217.8 feet to the Northwest corner of
said Lot 2; thence, running South along the West
line of said Lot 2 a distance of 200.00 feet to
the Point of Begining, containing 1.0 acres, more
or less, subject to all present and future easements,
covenants, and restrictions, all of the foregoing
real property being situated in the City of Canton,
County of Fulton and State of Illinois,
together with all easements, rights and privileges; all rents,
issues and profits thereof; all buildings and other improvements
now or hereafter placed thereon, expressly including all heating,
air conditioning, refrigerating, lighting, plumbing, water soften-
ing, water heating, gas and electric equipment; all burners,
stokers, boilers, tanks, ranges, refrigerators, awnings, screeens,
blinds, shades, and attached floor coverings; and all units or
attachments of every kind attached to, built in or especially
designed for use upon said premises, all of which for the purpose
of this mortgage shall be considered part of the real estate,
hereby releasing and waiving all rights under and by virtue of
the Homestead Exemption Laws of the State of Illinois and all
right to retain possession of said premises after any default in
the payment of the indebtedness hereinafter referred to or breach
of any of the covenants or agreements herein contained.
TO SECURE (1) the payment of a certain indebtedness in the
principal amount of Thirty_seven Thousand Five Hundred Dollars ,
together with interest thereon, as stipulated in the note herein-
after referred to, said principal and interest being payable in
semi-annual payments of $669.65 each commencing on the 1st day
of June 19 85 and continuing every six months thereafter
until principal is paid in full. Additionally, interest shall be
paid on the unpaid principal balance at the rate of 9.0 $ per annum
from the date hereof up to and including December 1 , 1988 , and
at the rate of 13.0$ per annum for the remaining term of the loan,
all as more specifically set forth in one certain note made by the
mortgagor to the order of the mortgagee, bearing even date here-
with; and (2) any advances made by the mortgagee to the mortgagor,
or its successor in title, for any purpose, at any time before the
release and cancellation of this mortgage, but at no time shall this
mortgage secure advances on account of said original note and suchDoll~rs
additional advances in a sum in excess of Thirty-seven Thousand Five Hundred
($ 37, 500.00 :) , provided that nothing herein contained shall be con-
sidered as limiting the amounts that shall be secured hereby when _~
(Exhibit 2)
ad~.•anced to protect the security or in accordance with co~•er,ants con-
tained in the mortcaae; and, (3) the perforr,ance of the covenants and
agreements herein contained.
A. THE MORTGAGORS COVENANT:
(1) To pay said indebtedness and the interest thereon as herein and
in said note provided; {2) To pay immediately when due and payable all
general taxes, special assessments and.-other taxes levied or assessed..
upon said property, or any part thereof, unless the advancements included
in the monthly installments paid the mortgagee shall have provided it
with sufficient funds for all such payments, and to promptly deliver
receipts therefor to the mortgagee upon demand; (3) To keep the improve-
ments now and hereafter upon said premises insured against damage by fire,
windstorm, and such other hazards as the mortgagee may require to be in-
sured against, until said indebtedness is fully paid, or in case of fore--~
closure until expiration of the period of redemption, for the full insur-
able value thereof, in such companies and in such form as shall be satis-
factory to the mortgagee; such insurance policies shall remain with the
mortgagee during said period or periods and shall contain the usual
clause making them payable to the mortgagee, and, in case of foreclosure
sale, payable to the owner of the certificate of sale, and in case of
loss, the mortgagee is authorized to adjust, collect, and compromise, in
its discretion, all claims under such policies, and to apply the proceeds
of any insurance claim upon the indebtedness hereby secured in its dis-
cretion, and the mortgagors agree to assign upon demand all receipts,
vouchers, and releases required of them by the insurance companies; (4)
To pay immediately when due and payable all premiums of said indebtedness
herein referred to, unless the said advancements paid the mortgagee shall
have provided it with sufficient funds for such payments; (5) Not to
commit or suffer any waste of said property, and to maintain the same in
good condition and repair; (6) To promptly pay all bills for such repairs
and all other expenses incident to the ownership of said property in order
that no lien of mechanics or materialmen shall attach to said property;
(7) Not to suffer or permit-any unlawful use of or any nuisance to exist
upon said property; (8) Not to diminish or impair th e value of said pro-
perty or the security intended to be effected by virtue of this mortcage
by any act of omission to act; (9) To appear in and defend any proceed-
ing which in the opinion of the mortgagee affects its security hereunder,
and to pay all costs, expenses, and attorneys' fees incurred or paid by
the mortgagee in any proceeding in which it may be made a party defendant
by reason of this mortgage; (10) Not to suffer or permit without the
written permission or consent of the mortgagee being first had and obtain-
ed (a) any use of said property for a purpose other than that for which _
the same is now used; (b) any alterations, additions to, demolition or
removal of any of~the improvements, apparatus, fixtures or equipment now
or hereafter upon said property; (c) a purchase upon conditional sale,
lease or agreement under which title is reserved in the vendor, or any
apparatus, fixtures or equipment to be placed in or upon any building or
improvement upon said property; (d) a sale, assignment or transfer, of
any right, title or interest in and to said property, or any portion
thereof, or any of the improvements, apparatus, fixtures or equipment
which may be found in or upon said property.
B. THE MORTGAGORS FURTHER COVENENT:
(1) That in case of their failure to perform any of their covenants
herein, the mortgagee may do on their behalf everything so covenanted;
that said mortgagee may also do any act it may deem necessary to protect
the lien of this mortgage, and that they will immediately repay any
moneys, together with interest thereon as provided in said note, shall
become so much additional indebtedness secured by this mortgage and may
be included in any decree foreclosing this mortgage and be paid out of
rents or proceeds of the sale of said premises, if not otherwise paid
by them; that it shall not be obligatory upon the mortgagee to inquire
into the validity of any lien, encumbrance or claim in advancing moneys
in that behalf as above authorized, but nothing herein contained shall be
construed as requiring the mortgagee to advance any moneys for any pur-
pose nor to do any act hereunder; that the mortgagee shall not incur
personal liability because of anything it may do or omit to do hereunder.
l - ^ -
(Exhibit 2)
(2) That additional advances secured by this mortcage may be made
to the mortgagors or their successors in title upon request of the
party then holding title and at the option of the mortgagee, and it is
agreed that in the event of such advances the amount thereof may be
added to the mortgage debt and shall increase the unpaid balance of the
note hereby secured by the amount of such advance and shall be a part of
said mortgage indebtedness under all the terms of said note and this
mortgage as fully as if a new note and mortgage were executed and deliver-
ed. An additional advance agreement may be given and used for such ad- .
vance and provision may be made for different monthly payments, interest
rate and other express modifications of the mortgage contract, but in all
other respects the same shall remain in full f orce and effect as to said
indebtedness, including all advances; that it is the intent hereof to
secure payment of said note whether the entire amount shall have been
advanced to the mortcagors at the date hereof or at a later date, or
having been advanced, shall have been repaid in part and further advances
made at a later date and to secure any other amount or amounts that may
be added Lo the mortgage indebtedness under the terms hereof.
(3) .That in the event the ownership of said property, or any part
thereof, becomes vested in a person other than the mortgagors, the mort-
cagee may without notice to the mortgagors, deal with such successor or
successors in interest with reference to this mortgage and the debt here-
by secured in the same manner as with the mortgagors, and may forebear to
sue or may extend time for payment of the debt secured hereby without
discharging or in any way affecting the liability of the mortgagors here-
under or upon the debt hereby secured.
(4) That time is the essence hereof and if default be made in per-
formance of any covenant herein contained or in making any payment under
said note, or any extension or renewal thereof for a period of sixty (60)
days, or if proceedings be instituted to enforce any other lien or charge
upon any of said property; or upon the filing of a proceeding in bankrupt-
cy by or against the mortgagors, or if the mortcagors shall make an ass-
ignment for the benefit of theer creditors, or if their property be placed
under control or in custody of any court, or if the mortgagors abandon
any said property, then and in any of said events, the mortgagee is
hereby authorized and empowered, at its option, and without affecting the
lien hereby created or the priority of said lien or any right of the
mortgagee hereunder, to declare, without notice, all sums secured hereby
i~ranediately due and payable, whether or not such default be remedied by
the mortgagors, and said mortgagee may immediately proceed to foreclose
this mortgage.
(5) That upon the commencement of any foreclosure proceeding here-
under, the court in which such complaint is filed may, at any time either
before or after sale, and without notice to the mortgagors or any party
claiming under them and without regard to the then value of said premises,
or the solvency of the mortgagors, or whether the same shall then be
occupied by the owner. of the equity of redemption as a homestead, appoint
a receiver, who may be the mortgagee or its agent, with power to manage
and rent and to collect the rents, issues, and profits or said premises
during the pendency of such foreclosure suit and the statutory period of
redemption, and such rent s_; issues, and profits, when collected, may be
applied, before as well as after the master's sale, towards the payment.
of the indebtedness, costs, taxes, insurance or other items necessary
for the protection and preservation of the property, including the expens-
es of such receivership, or on any deficiency decree whether there be a
decree therefor in personam or not; and upon foreclosure and sale of
said premises there shall be first paid out of the proceeds of such sale
a reasonable sum for attorneys' fees, and also all expenses of advertisinc_
selling, and conveying said premises, and all moneys advanced for insur-
ance, taxes or other liens or assessments, outlays for documentary evi-
Bence, stenographers' charges, all court costs, master's fees, and the
cost, either actual or estimated, of procuring or completing an abstract
of title or guarantee policy showing the whole title to said premises,
and inccuding the foreclosure decree and the Master's Certificate of Sale,
-3-
(Exhibit 2)
and there shall then be paid the principal indebtedness whether due and
payable by the terms hereof or not, and the interest due thereon up to
the time of such sale and the overplus, if any, shall be paid unto the
mortgagors, and it shall .not be the duty of the purchaser to see to the
application of the purchase money and in case of payments of said indebt-
edness, after the filing of any complaint -to foreclose this mortgage,
and prior to the entry of a decree of sale, a reasonable.sum_for legal
services rendered to the time of such payment shall be allowed as
attorneys' fees, which, together with any sum paid for continuation of
abstract, court costs, and stenographers' charges and expenses of such
proceeding, shall be additional indebtedness thereby secured. In the
event of foreclosure and any 'sale thereunder, any abstract of the mort-
gaged premises deposited with the Association shall become the property
of the Association.
(6) That each right, power, and remedy herein conferred upon the
mortgagee is cumulative of every other right or remedy of the mortgagee,
whether herein or by law conferred, and may be enforced concurrently
therewith; that no waiver by the mortgagee to require or enforce perfor-
mance of the same or any other of said covents; that wherever the context
hereof requires, the plural number, as used herein, shall include the
singular.
In order to further secure the aforesaid indebtedness evidenced by
said note, the morgagors hereby tranfer, set over, and assign unto the
said City of Canton,~an.Illineis munici>al corporation., the
vossession of and all the rents, issues, and profits now due or which
may hereafter become due under and by virtue or any lease, whether writ-
ten or oral, or any letting of or any agreement for the use or occupancy
of the hereinbefore described premises, or any part thereof, whether here
tofore or hereafter made or agreed to either by the mortgagors or by
the mortgagee, under the power herein granted, it being the intention to
hereby effect an absolute transfer and assignment of all such leases and
agreements and the avails thereunder.
And the said mortgagors Whereby irrevocably appoint the said- _
City-of Canton; an Illinois municipal corporation their attorney_in_ __
fact, with full power of substitution, for the management of the said
hereinbefore described premises and it may let and relet said premises, -
or any party thereof, according to its own discretion and collect and
receive all the rents, issues, and profits derived therefrom, and it may
bring or defend in its own name or in the name of the mortgagors any
suits in connection with said premises and make such repairs to said
premises as it considers expedient, all its acts and doings in connection
therewith as their said attorney being hereby expressly ratified by the
said mortgagors.
This assignment and power of attorney shall be construed as a coven-
ant running with the land, it shall become operative only in the event of
default. in the payment of the aforesaid monthly installments, or in the
event of the breach of any of the mortgagors' covenants in the foregoing
mortgage contained, and it shall continue in full force and effect until
the aforesaid note shall be fully paid, at which time it shall terminate.
All rents, issues, and profits collected hereunder shall, at the option
of the mortgagee, be applied either in payment of taxes, special assess-
ments, insurance premiums, and operating expenses, or in payment of the
aforesaid note.
In the event of the exercise of this agreement and power of attorney,
the said mortgagors agree to pay such reasonable rent as the mortgagee
may demand for such portion of said premises as they may occupy and a
failure on -their part to promptly pay such rent shall constitute a forci-
ble entry and detainer.
-4-
(Exhibit 2)
It is expressly understood and agreed by and between the mortgagors
and the mortgagee. that all rights and obligations under this mortcage,
assignment, and power of attorney shall extend to and be binding on the
respective heirs, executors, administrators, successors, and assigns of
the morgagors and the mortgagees.
IN WITNESS WHEREOF, we have hereunto set our hands and seals this
day of - 19
LA ROMA PIZZA, INC., an -Illinois
corporation, Mortgagor,
BY:
ATTEST:
BY.
Its President.
Corporate Secretary.
STATE. OF ILLINOIS ) ss.
COUNTY OF FULTON )
Its Vice-President.
I, the undersigned, a Notary Public in and for said County, .in the
State aforesaid, DO CERTIFY that
-, President; .Vice-President;
and '. r Corporate Secretary, personally known to me
to be the same persons whose names are subscribed to the foregoing
instrument, appeared before me this day in person, and acknowledged
that they signed, sealed., and delivered the said instrument as their
free and voluntary act, for the uses and purposes therein set forth,
including the release and waiver of the right of homestead.
GIVEN under my hand and notarial seal, this day of ,
19 ~ ---
Notary Public.
-5-