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HomeMy WebLinkAboutResolution #1029.-S`, i RESOLUTION N0. 102 9 A RESOLUTION APPROVING AN AGREEMENT BETWEEN THE CITY OF CANTON AND THE FIRM OF PHILLIPS & ASSOCIATES AND DIRECTING THE MAYOR AND CITY CLERK TO EXECUTE SAID LOAN AGREEMENT ON BEHALF OF THE CITY OF CANTON. WHEREAS, the City of Canton, Illinois. has entered into negotiations with Phillips and Associates for a loan from the City's Enterprise Zone Loan Fund for the amount of $75,000, these funds are made available thru 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, Illinois has reviewed the terms of the proposed agreement, a copy of which is attached hereto and made a part hereof as Exhibit A; and, WHEREAS, the City Council of the City of Canton, Illinois has determined that it is desirable and in the best interests of .the City of Canton to approve said agreement. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CANTON, ILLINOIS, AS FOLLOWS: 1. That the Agreement between the City of Canton and Phillips & Associates, which is attached hereto and made a part hereof as Exhibit A, is hereby approved, said agreement to be subject to and effective pursuant to the terms and conditions set forth therein. 2. That the Mayor and the City Clerk of the City of Canton, Illinois are hereby authorized and directed to execute said 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 this 151; day of Mai 1984 upon a roll call vote as follows: AYES: Aldermen Kovachevich, Hammond, Savill, Sarff, Workman, Carl, May, Horr. NAYS: None. ABSENT : N one . APPRO D; onald E. Edwards, Mayor. ATTEST: Nanc -Whites City Clerk. LaAN AC~tEEi~TTI' This agreement dated as of April 17 , 19 84 is between the City of Canton, an Illinois Municipal Corporation (hereinafter called "Lender"), and Phillips and Associates Inc. , a Delaware corporation, (hereinafter called "Borrower"). In consideration of the mutual covenants and agreements contained herein, Lender and Borrower agree as follows: - r 1. Loan Terms: Lender agrees to loan the principal sum of seventy-five thousand dollars (S 75,000.00) (hereinafter referred tD as "Moan"), 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 30 years from December 30, 1983. This loan is evidenced by a promissory note of even date herewith (Exhibit 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 Doan Fund (hereinafter called "ROLE") application sutmitted to the Department of Health and Human Services/Office of Coimunity Services (hereinafter called "OCS") (including any supplements or modifications thereof) and in accordance with Lender's Loan Terms and Conditions relating thereto, the terms and conditions of this Loan Agreement and the Rules and Regulations (as they may be amended) governing the RDLF (45 CFR 1076.50). ~ a 9~ ~•~~l~~~~~ l~~~~t l~ 1~~" l 11 i 1 1~ gg ~~ ~1~~~~y~~'1~ 'i~t~~l~~i~~ ~ ' " ~ 3 ~ ~~ ~oa~ ~~ ~ ~~~$~t: ~ ~~~~~ .. i~~~ ~~ ~~ ~~~~~ _~~ ~i .~~~~ 4 1 1~~~~ 1~ /~~ ~ ~ ~ a t$ t ~7iE~ ~~ ~~~~E~ ~E! ~ ~ ~ 0 ~•~~ ~ ~ rg~~~id~~ i ~ ~~~~ + r Y7~~ [ ~ ~{_ ~ I I ~~ ~ J I 1 ~2 r'~~~ 1 ~ ~1 tl 1. Ii11111 i 2. Repayment: Repayment of this loan shall be made as follows: 2.1 Principal shall be paid in sixty (60) equal semi-annual install~ts of ($ 1 , 2 5 0. 0 0 ) each canrencing on the 1st day of June 19 85 and continuing every six rmnths there- .. after 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 June 1st, 19 84 and then on Decemt~r 1st, and June 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 same rate as noted above for said principal. Interest shall be considered unpaid if not received by Lender within 7 calendar days following the due date. 2.4 Borrawes shall pay a_late charge of 6~ of the payment due of princi- pal 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 Borrvwpr shall have the right to prepay any and all interest and princi- pal at any time without penalty or additional interest. -2- 3. Certifications: On or before the date of the loan disbursement, the Borrower shall sutmit the following doc~.m~entations to Lender: 3.1 A current copy of the Borrvwer'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 'f affect the Borrvwps's ability to carry out the terms and conditians of this agreement. 3.3 If a corporation, a certified copy of Borrower's corporate resolution t authorizing and directing the execution and delivexy by Borrower to Lender of this agreement and all related documents. 4. Distxtrsement Procedure: 4.1 Disburse~r~nt shall take place after this loan agreement and the pranissory note (E~chibit 1) are executed, and the documP~tation called for in paragraph 3 above and any other conditions precedent to dis- bursement of funds under this award are fully satisfied. 4.2 Thereafter, Lender i~diately shall cause to be issued a check upon Borrower's written request in the principal amcnint in paragraph 1 of this agreement. 4.3 Bon~ower shall notify the Lender of such date of disbursement in writing not less than five (5) days prior to such date. 4.4 Borrowns shall maintain a separate ledger and segregated account for RDLF funds obtained hereunder. 4.5 Loan annunts shall retain their character as Lender assets while in Lender's possessicei. -3- 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 agreecmnt with OCS. Borrower agrees to make all of its books, accounts and other f~n~n-ia1 data available to Lender, or, Lender's authorized agents (to include Lender's auditors) in support of Lender's requirement to make ~•such reports and audits. Borrower agrees at Borrower's expense, to provide Lender with certified abstracts of any such books, accounts, or other financial data within five (5) working days of Lender's written request t .- :therefor . ' 6. Relendinq 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 Agreem~t, or, to any security pledged in repayment of this laon without first obtaining Lender's written consent thereto. 7. Default: On the 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 instnanents 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 cut or catg~ly with the specific activities in its loan application as -4- approved by Lender, or Lender's Loan Terms and Conditions, or any terms or conditi~s of this Loan Agreement, or any applicable federal or state laws, or with such OC.S regulations as may became applicable at any time. (B) Failure of Borro~,rer to pay any installment of principal or interest ~~ on its prcanissory note to Lender when due as specified in paragraph 2 above. (C) The occurrence of: (1) Borrower's becoming insolvent or bankrupt, or ceasing, being umable, or adm~tting in writing its inability, to pay its debts as they mature, or making a general assignment with creditors; (2) proceedings for the appointment 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 bai~cruptcy, reorganization, readjustment of debt, insolvency, dissolution, liquida- tics or other similar law of any jurisdiction being authorized or insti- tuted by or against this Borrower. (D) S~nission or making of any report, statsnent, warranty, or representatioaZ by Borrower or agant on its behalf to Lender or OCS in connection with the financial assistance awarded hereunder which is false, incanplete or incorrect in any material respect. (E) Failure of Borrvwps to remedy any material adverse change in its financial or other cea~dition arising since the date of this agreement, which condition was an inducement to this loan. (F) Any atteitrpt by Borrower to assign any right, title or interest in and to this Agreement, or, to any security pledged in repayment of this loan without first ohta;Wing Lender's written consent thereto. -5- 8. Collateral: The Borrvw~s pledges as collateral to secure its indebtedness under this Loan Agreem°tit, its portfolio of investments derived from the proceeds of this loan award, together with such other security as Lender may require. 9. Other Parties: This Loan Agreesrent is not far the~benef it of third pa*~-t-; es . Lender shall not be under any obligation to any such parties, whether directly or indirectly interested in the Loan Agreelrent, 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, reasonable attorney fees, and all•other out-of-pocket expenses paid by Lender in enforcing the teens and conditions of this agreement occassioned by Borrower's failure to ca~ly with such terms and conditions . Borrrower hereby irrevoc-.ably consents that all such attorney fees, costs and expenses, and out-of-pocket expenses may be included in any judc~it awarded to Lender in any proceeding at law or in equity to enforce this agreemezit. 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 Borr+awpx' s expressed intention of purchasing real pzvperty and i~rovements thereto, industrial machinery and equipment, and other diverse property to be located within Lender's -6- .corporate limits. Both Lender and Borrower recognize and agree that presently existing jabs are expected to be retained hereby and new jobs created. Bflrrow~s oonvenants and agrees to not remove jobs retained or created by use of this loan from bender's corporate limits during the s term of the loan as expressed in Paragraph 1 even though Borrower may - soarer pay all interest and principal hereunder without first obtaining Lender's written consent. 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: Zb 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. Zb the Borro~.r: Phillips and Associates 44 White Court Canton, Illinois 61520 13. Successors and Assigns: The Loan Agreen~nt shall be binding upon Borrower and its successors and assi~s and upon Lender and its successors and assigns, and shall survive the closing of the Loan and disbursement of proceeds. -7- 14. Contingencies: In addition to any foregoing contingency, loan funds will only be disbursed upon completion of all of the following in form and substance satisfactory to the Lender: (a) Jobs must be created and kept in the Canton Enterprise Zone for the period and otherwise in conformity with other requirements expressed in Paragraph 11 of this Loan agreement. (b) Binding collateral and security satisfactory to the t Lender must be provided by Borrower. (c) Borrower must provide Lender with the personal guarantee of Clarence W. Phillips, President of Phillips and Associates, Inc., in an amount not less than the principal amount of this loan, all in form satisfactory to the Lender. (d) Final written appraisals in form satisfactory to Lender must be completed on all collateral property, real or personal. 15. Applicable Laws: Interpretation of the terms and provisions of this Loan Agree- ment shall be in accordance with the laws of the State of Illinois. IN WITNESS WHEREOF, Lender and Borrower have executed duplicate originals of this Loan Agreement as of the date first above-mentioned. BORROWER: LENDER: Phillips and Associates, City of Canton, an Illinois Inc. Delawar orpor- municipal corporation, atio BY : BY : ~ -~~ Its resi en Its ayor. Date: April 17, 1984. Address: 44 White Court Canton, IL. 61520 Phone: (309) 647-2978 ATTE _~:Grpoxate Secre ary . Date: Address: City Building 210 E. Chestnut St. Canton, IL. 61520 Phone: (309) 647-0065/0020 ATTEST: Cit Clerk. (Corporate Ssal) (Corporate Seal) .. , ~ a~~K e~~14PAGE ~`~36 REAL ESTATE MORTGAGE THIS INDENTURE WITNESSETH: That the undersigned, PHILLIPS AND ASSOCIATES, INC., a Delaware 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 df Canton, in the County of Fulton and State of Illinois, hereinafter referred to as the "Mortgagee", the following described real property, to-wit: A part of Lot Number Forty-five (45) in Jones' Second Addition to the Town, now City of Canton, bounded and described as follows: Begining at a point on the East line of said Lot 45, 20 feet North of the Southeast corner of said Lot; thence, running West 75 feet; thence, North 19.9 feet; thence, East 75 feet; thence, 19.9 feet to the place of begining, EXCEPT the South Half of the South wall of the brick building now on the premises described above, situated in the City of Canton, County of Fulton and State of Illinois; AND A part of Lot Number Forty-five (45) in Jones' Second Addition to the Town, now City of Canton, bounded and described as follows: Begining 30.5 feet North of the Southwest corner of said Lot; thence, running East 78 feet; thence, North 18 feet; thence, West 78 feet; thence, South 18 feet to the place of begining, 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, screens, 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 SEVENTY-FIVE THOUSAND DOLLARS ($75,000.00), together with interest thereon, as stipulated in the note herein- after referred to, said principal and interest being payable in semi-annual payments of $1,250.00 each commencing on the 1st day of June, 1985 and continuing every six months thereafter until principal is paid in full. Additionally, interest shall be paid on the unpaid principal balance at the rate of 9~ per annum from the date hereof up to and including December 31, 1988, and at the rate of 13$ 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 such additional advances in a sum in excess of Eighty Thousand Dollars ($80,000.00), provided that nothing herein contained shall be con- sidered as limiting the amounts that shall be secured hereby when ' 'BOOK i~c1~PAGE ~J 1 advanced to protect the security or in accordance with covenants con- tained in the mortgage; and, (3) the performance 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 the value of said pro- perty or the security intended to be effected by virtue of this mortgage 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. -2- (2) That additional advances secured by this mortgage 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 force 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 mortgagors 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 to 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- gagee 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 procee-ding in bankrupt- cy by or against the mortgagors, or if the mortgagors shall make an ass- ignment for the benefit of thier 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 immediately 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 rents, issues, and prof its, 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 advertising, selling, and conveying said premises, and all moneys advanced for insur- ance, taxes or other liens or assessments, outlays for documentary evi- dence, 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 inlluding the foreclosure decree and the Master's Certificate of Sale, -3- gn,OK 9r1~tPAGE ~~9 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 possession 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. Ant the said mortgagorshereby irrevocably appoint the said City of Canton, air 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 prof its 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- 1 • •. °'!OK ~`,~PaGE ~4O It is expressly understood and agreed by and between the mortgagors and the mortgagee that all rights and obligations under this mortgage, 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 17th day of April, 1984. PHILLIPS AND ASSOCIATES, INC., a Deleware corp~ation, ~ ~,+~ ;~ e BY: . ~ ~.~ ~ t~. / . =r; ~•I,. ~``- Cprp/Qry'tae S cretary. ~~•. ~'J ~!!!!11lU tt~ STATE OF ILLINOIS ) ss. COUNTY OF FULTON ) -Its ~ P're dent. Its Vi -Presiden I, the undersigned, a Notary Public in and for said County, .in the State aforesaid, DO CERTIFY that PHILLIPS AND ASSOCIATES, INC., by Clarence W. Phillips, President; Dorothy I. Phillips, Vice-President; and William F. Phillips, 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 notari 1 seal, this ~ 2~' day of ~'uh~, , 1984. ~y Commission Expires ~Sepf.11, 198G Prepared by: James H. Malmgren Attorney at Law 369 N. Main St. Canton, IL. 61520 PH: (309) 647-0647 Return to: City Clerk City Building 210 E. Chestnut St. ~I~ O~ Canton, IL. 61520 No ~~ F ~Publ'.c ~: • ~ u) _ y ~~ ~~,~~ ¢~V -5- h •~t- • .. '~nOK ~~1~PAGE ~~1 NOTE PHILLIPS AND ASSOCIATES, INC., a Delaware corporation, promises to pay to the order of the CITY OF CANTON, an Illinois municipal corporation, the sum of SEVENTY-FIVE THOUSAND DOLLARS ($75,000.00) together with interest thereon at the rate of 9~ per annum from the date hereof to and including December 31, 1988, and at the rate of 13$ per annum thereafter to and including April 17, 2014. PAYMENT SCHEDULE: (a) PRINCIPAL: Principal shall be paid in Sixty (60) equal semi-annual installments of $1,250.00 each commencing on the 1st day of June, 1985, and continuing every six months thereafter until the principal sum of $75,000.00 is paid in full. (b) INTEREST: Interest shall be paid on the unpaid principal balance at the rate of 9~ per annum with the first payment due on June 1, 1984, and then on December 1st and June 1st of each year until and including December 1, 1988. After such period, interest shall be paid on the unpaid principal balance in said semi-annual installments at the rate of 13~ 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 shall be con- sidered unpaid if not received by the City of Canton within 7 calendar days following the due date. Phillips and Associates, Inc., shall have the right to prepay any and all interest and principal at any time without penalty or additional interest. This Note is specifically made subject to the terms and conditions of a certain "Loan Agreement" between Phillips and Associates, Inc., and the City of Canton, dated as of April 17, 1984, and approved by City of Canton Resolution Number 1029 on May 1, 1984 (as amended) as fully as though all the terms and conditions of said Loan Agreement were fully set forth at this place verbatim. To secure the payment of this Note, Phillips and Associates, 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 u~, 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 17th day of April, 1984. PHILLIPS AND ASSOCIATES, INC., a Delaw Corp do BY: Its Presi e t an t ~r ~ ~`~~~ . i Q ~. ~^ ~0 ..'.; ~n -M. Ly y~ ~~: ,,~ s .,. ~ to I s Vice-Pre ident. ****************************************************************** C;iJARANTEE FOR VALUE RECEIVED, the undersigned, Clarence W. Phillips and Dorothy I. Phillips, husband and wife, each in his and her own right and as spouse of the other, hereby guarantee the payment of the foregoing Note at maturity or at any time thereafter, with interest a3aao~3a ~ lla3r~ uNrroo ~~39V 'lOh NI 03GeW3N Alf1U UNti N ~a,~l'~"rir 11 ~~ V.~ ~0 A n3N11VD ~t}0~324 NEi:i il._ I~ iN3W(IN1SN~ S5 NO1NL i0 AlivliGJ SfONIi~ .i0 31V13 dTTTTud ~u~o.zoa) _-: , .. dzTTz d •M a u~x °.T~l. 'b86T 'TTZd~ ~o dap u~LT s?u~ ~o s~ :Q~J~'FiII- •uoz~noaxa a~~tpaunu-r o~ ~uasuoo pu>? szozza TTp as~aTaz off. 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