HomeMy WebLinkAboutResolution #4009 - promissory installment note - sarahs friendly hardware and wendell & sarah carter
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Promissory Installment Note
1. RECITATIONS:
Date: November ~ , 2012
Borrowers: Sarah's Friendly Hardware, Inc. and Wendell and Sarah Carter
Borrowers' Addresses: Agent: 119 W. Main Street, Elmwood, IL 61529
Wendell and Sarah Carter
3105 N. Bigelow Avenue
Peoria, IL 61604
Lender: City of Canton
Place for Payment: 2 North Main Street, Canton, Illinois 61520
Principal Amount: $50,000.00
Term: Interest only between December 7, 2012 through May 7, 2013,
then monthly (see attached Amortization Schedule)
Monthly Payments: $898.53 beginning June 7, 2013
Maturity: May 7, 2018
2. PRONIISE TO PAY. Borrowers promise to pay lender, or order, any lawful money of
the United States of America, the principal amount of fifty thousand ($50,000.00) together with
interest at the rate of 3% per annum on the unpaid principal balance from June 7, 2013, until paid
in full. Borrowers promise to pay lender interest-only payments from December 7, 2012 to May
7, 2012.
3. INTEREST RATE. Annual interest rate on matured, unpaid amounts shall be at the rate
of three percent (3%).
4. PAYMENT TERMS. Borrower will pay this loan in sixty-six (66) payments of eight
hundred ninety-eight dollars and fifty-three cents ($898.53) each payment, subject to the
amortization schedule attached hereto and incorporated herein by reference. Borrowers' first
payment is due December 7, 2012, and all subsequent payments are due on the same day of each
month after that. Borrowers' final payment will be due on May 7, 2018, and will be for all
principal and accrued interest not yet paid. Payments include principal and interest, except for
the first six (6) payments, which will be interest only. Unless otherwise agreed or required by
applicable law, payments will be applied first to any accrued unpaid interest; then to principal;
then to any unpaid collection costs; and then to any late charges. The annual interest rate for this
promissory installment note is computed on a 365/360 basis; that is, by applying the ratio of the
Promissory Installment Note Page 1 of 5
annual interest rate over a year of 360 days, multiplied by the outstanding principal balance,
multiplied by the actual number of days the principal balance is outstanding.
5. PRE-PAYMENT. Borrowers may pay without penalty all or a portion of the amount
owed earlier than it is due. Early payments will not, unless agreed to by lender in writing,
relieve Borrowers of obligation to continue to make payments under the amortization schedule.
Rather, early payments will reduce the principal balance due and may result in Borrowers
making fewer payments. Borrowers agree not to send lenders payments marked "paid in full",
"without recourse", or similar language. If Borrowers send such a payment, Lender may accept
it without losing any of Lender's rights under this note, and Borrowers will remain obligated to
pay any further amount owed to Lender. All written communications concerning disputes
amounts, including any check or payment instrument that indicates that the payment constitutes
"payment in full" of the amount owed where that is tendered with other conditions or limitations
or as full satisfaction of the disputed amount must be made or delivered to "City of Canton, 2 N.
Main Street, Canton, IL 61520".
6. PLACE FOR PAYMENT. Borrowers will pay Lender at Lender's address shown
above or at such other place as Lender may designate in writing.
7. DEFAULT AND ACCELERATION CLAUSE. If Borrowers default in the payment
of this note or in the performance of any obligation, including, but not limited to those noted
below, and the default continues after Lender gives Borrowers notice of the default and the time
in which it must be cured, as may be required by law or written agreement, then the Lender may
declare the unpaid principal balance on this promissory installment note immediately due.
Borrowers and each surety, endorser, and guarantor waive all demands for payment, presentation
for payment, notices of intentions to accelerate maturity, notices of acceleration of maturity,
protests and notices of protest, to the extent permitted by law.
Each of the following shall constitute an event of default under this note:
a. Payment default: Borrowers fail to make any payment when due under this note.
b. Other defaults: Borrowers fail to comply with or to perform any other term,
obligation, covenant or condition contained in this note, or in any of their related
contained in any other agreement between Lender and Borrowers.
c. Default in favor of third parties: Borrowers or any guarantors default under any
loan, extension of credit, security agreement, purchase far sales agreement, or any
other agreement, in favor of any other creditor or person that may materially affect
any of the Borrowers' property or borrowers' ability to repay this note or perform
Borrowers' obligation under this note or any other related documents.
d. False statements: Any warranty, representation or statement made or furnished to
Lender by Borrowers or on Borrowers' behalf under this note or the related documents
as false or misleading in any material respect, either now or at the time made or
furnished or becomes false or misleading at any time thereafter.
e. Insolvency: The dissolution or termination of Borrowers' existence as a business, the
insolvency of Borrowers, the appointment of a receiver for any part of Borrowers'
property, any assignment for the benefit of creditors, any type of creditor workout, or
Promissory Installment Note Page 2 of 5
the commencement of any preceding under any bankruptcy or insolvency laws by or
against Borrowers.
f. Change in ownership: Any change in ownership of twenty-five percent or more of
the common stock of Borrowers.
g. Adverse change: A material adverse change occurs in Borrowers' financial condition,
or Lender believes the prospect of payment or performance of this note is impaired.
h. Insecurity: Lender in good faith believes itself insecure.
8. INTEREST ON PAST DUE INSTALLMENTS AND CHARGES. All asn t due
installments of principal and/or interest and/or all other past-due incurred charges shall bear
interest after maturity at the maximum amount of interest permitted by the Laws of the State of
Illinois until paid in full. Failure by Borrowers to remit any payment by the tenth (10~') day
following the date that such payment is due entitles the Lender hereof to declare the entire
principal and accrued interest immediately due and payable. The Lender's forbearance in
enforcing a right or remedy as set forth herein shall not be deemed a waiver of said right or
remedy for a subsequent cause, breach or default of the Borrowers' obligations herein.
9. INTEREST. Interest on this debt evidenced by this Note shall not exceed the maximum
amount of non-usurious interest that may be contracted for, taken, reserved, charged, or received
under law; any interest in excess of the maximum shall be credited on the principal of the debt
or, if that has been paid, refunded. On any acceleration or required or permitted prepayment, any
such excess shall be canceled automatically as of the acceleration or prepayment or, if already
paid, credited on the principal of the debt or, if the principal of the debt has been paid, refunded.
10. FORM OF PAYMENT. Any check, draft, money order, or other instrument given in
payment of all or any portion hereof may be accepted by the holder and handled in collection in
the customary manner, but the same shall not constitute payment hereunder or diminish any
rights of the holder hereof except to the extent that actual cash proceeds of such instruments are
unconditionally received by the Lender and applied to this indebtedness in the manner elsewhere
herein provided.
11. JOINT AND SEVERAL LIABILITY. For good and valuable consideration, on the
date set out above, the Borrowers herein identified in this instrument jointly and severally,
guarantee the payment of the Promissory Installment Note. Borrowers acknowledge that the
Lender does not have any obligation to first demand payment from Sarah's Friendly Hardware,
Inc. Borrowers further acknowledge that by attesting their signatures to this document, the City
can demand payment from any and /or all of the Borrowers regardless of the financial or legal
status of S rah's Friendly Hardware, Inc.
! ~ ~ ' ~ ~7 (date)
en 11 Ca
~ ~ ~ (n~ (date)
r er
12. A 'S FEES; EXPENSES. If this Note is given to an attorney, including any
attorney within the employ of the City of Canton, for collection or enforcement, or if suit is
Promissory Installment Note Page 3 of 5
brought for collection or enforcement, ar if it is collected or enforced through probate,
bankruptcy, or other judicial proceeding, then Borrowers shall pay the Lender all costs of
collection and enforcement, including reasonable attorney's fees and expenses in addition to
other amounts due.
13. CONFESSION OF NDGEMENT. Borrowers hereby irrevocably authorize and
empower any attorney at law to appear in any court of record and to confess judgment against
Borrowers for the unpaid amount of this Note as evidenced by an affidavit signed by an officer
or elected official of the Lender setting forth the amount then due, attorney's fee plus cost of suit,
to release all errors, and waive all rights of appeal. If a copy of this Note, verified by an
affidavit, shall have been filed in the preceding, it will not be necessary to file the original as a
warrant of attorney. Borrowers waive the right to any stay of execution and the benefit of all
exemption laws now or hereafter in effect. No single exercise of the forgoing warrant in power
to confess judgment will be deemed to exhaust the power, whether or not any such exercise shall
be held by any court to be invalid, violable, or void; but the power will continue undiminished
and may be exercised from time to time as the Lender may elect until all amounts owed on this
Note have been paid in full. Bonowers hereby waive and release any and all claims or causes of
action which Borrowers might have against any attorney acting under the terms of authority
which Borrowers have granted herein arising out of or connected with the confession of
judgment hereunder.
14. SEVERABILITY. If any provision of this Note or the application thereof shall, for any
reason and to any extent, be invalid or unenforceable, neither the remainder of this Note nor the
application of the provision to other persons, entities or circumstances shall be affected thereby,
but instead shall be enforce to the maximum extent permitted by law.
15. BINDING EFFECT. The covenants, obligations and conditions herein contained shall
be binding on and inure to the benefit of the heirs, legal representatives, and assigns of the
parties hereto.
16. DESCRIPTIVE HEADINGS. The descriptive headings used herein are for
convenience of reference only and they are not intended to have any affect whatsoever in
determining the rights or obligations under this Note.
17. CONSTRUCTION. The pronouns used herein shall include, where appropriate, either
gender or both, singular or plural.
18. GOVERNING LAW. This Note shall be governed, construed and interpreted by,
through and under the Laws of the State of Illinois.
PRIOR TO SIGNING THIS NOTE, BORROWERS READ AND UNDERSTOOD ALL THE
PROVISIONS OF THIS NOTE. BORROWERS AGREE TO THE TERMS OF THIS NOTE.
Promissory Installment Note Page 4 of 5
BORROWERS ACKNOWLEDGE RECEIPT OF A COMPLETED COPY OF THIS
PROMISSORY NOTE.
EXECUTED this day of November, 2012.
B RRO R(S
;
Sarah'"s y Hardware, Inc.
i
n Illinois Co ration, by its President,
Sara a er
Attest: V"
It's Secretary, Wendell Carter
Pursuant to the terms of Section 11 noted above (JOINT & SEVERAL LIABILITY) the
undersigned, jointly and several(y, guarantee payment of the Promissory Note as set forth
herein, as Borrowers.
~'--6~~z
endell Cart Date
~ ( ' ~C?' ~ c~--
Sarah er Date
C
Promissory Installment Note Page 5 of 5
~ Amortization Page I af 3
Amortization
Borrower ~ame True Va~ue
Address
IL
Loan aumber
Date Amount Fayment Principai Interest I~.emainzng Balance
12 -07-2012 ~ixect Rate 3.004
11-07-201~ Funding 50,000.00 SO,~QQ.00
12-07-2012 Interest ~'mt 123.29 0.00 1~3.29 Sp,000.00
2012 Tatals, 123.29 0.4~ I23.29
01-07'-2~13 rnterest Pmt 127.40 O.OQ 127.40 Sp,QO+~.pp
02-fJ7-20I3 Interest P'mt 1~7.40 0.40 127.40 S~,OpU,Op
03-07-2413 Interest Pmt 115.07 0.00 l 15.07 ~0,000.00
04-07-20i3 Int~rest Pmt 127.4Q O.flO 127.40 5C3,000.00
05-Q7-2013 ~nterest Pmt 123.29 0.04 123.29 SO,f100.00
06-07-2Q 13 Regular Fmt $98.53 771.13 127.4~0 49,228.87
07-Q7-2U 13 Regular Pmt 898.53 777.14 121.39 48,4~ 1.73
08-07-2013 Regular Prnt 898.53 775.0$ 123.45 47,676.65
09-07-2013 Regular Pmt $98.53 777.05 1~ 1.48 46,899.+60
10-U7-2013 Regular Pmt 898.53 782.89 115.64 46, i~.6.7 l
~ 1-07-2013 Regular Pmt 898.53 7$1.Q3 117`.50 45,33:5.68
12-07-2413 Regular Pmt 898.53 '786.74 111:79 44,~4$.94
~013 Totals: 6,910.27 5,451.(}6 1,459.21
Q1-07-2014 RegularPmt &98.53 785.02 113.Si 43,763.92
02-07-2014 R~gular Pmt 89$.53 787.02 111.51 42,97b,9Q
Q3-07-2{?14 Regular Prnt 898.53 799.62 98.9i 42,I77`.28
44-07-2(~14 Regular Pmt 89853 791.06 107.47 41,38~.~2
file://C:\Users~cmayail\A.ppData\L.ocal\Temp154\t Amortization.bsi 11I1/2412
' ~ Amortization Pag~ 2 of 3
d5-07-2Q14 Regular Pmt 89$.53 796.48 102,05 40,58~.74
06-Q7-20I4 R:egular Prnt 898.53 79~. ~ I 103.42 39,794.d3
07-07-2014 Regular Pm~ $98.53 $00.41 98.12 38,994,22
08-07-2014 ~t~gular Pnnt 898.53 799.17 99.36 38,19S.Q5
09-0'7-2014 Regutar I'n~t $9$.53 841.21 97.32 ~7,393.8~4
10-07-2014 Regul~r Pmt 898.53 806.33 92.20 3~,587.51
11-07-20i4 Regular Pmt 898.53 $U5.31 93.~2 35,7$2.24
12-4'1-2414 Reguiar Pmt 898.53 $10.30 88.23 34,971.90
20I4 Totals: 10,782.36 9,577.04 1,~05,3~
O1-Q7-~015 Regular Fmt 898.53 809.42 89~.11 34,162.48
02-07-ZQ:1S Regular Pmt 898.53 811.49 87.04 33,350,99
03-07-2flIS Regular Pmt 848,53 8~I.78 7b.7S ~2,529.21
04-U7-2015 Regular Pmt 898.53 815.65 82.88 3 I,713.5d
OS-07-2015 Regular Pmt 898.53 820.33 78.2~ 30,$93.23
06-U7-2015 Regular Pmt 898.53 819.82 7$.71 30,073.41
07-07 20I5 RegularPmt $98.53 824.3$ 74.15 ~g,249.03
a8-07-ZO15 Regular Pmt 898.53 824.01 74.52 28,425.02
09-U7-2015 Regular Pmt 898.53 826.10 72:43 27,598.92
10•07-20I5 Regular Pmt 848.53 830.48 b8.0~ 26,?68.44
1 l-07-~015 Regt~.lar P~nt $98.53 830.33 68.'?0 25,93`8. ~ 1
12-07~2015 ReguiarPmt 898.53 834.57 63,9b ZS,1t~3.54
2015 Totals: 1Q,782.36 9,$68.36 914.U0
0~-07-2016 RegularPmt 89$.53 $34.57 b3.96 24,2fi8.97
fl2-07-2a16 Regular Pmt 898.53 836.69 61.84 23,432.2$
03-07-2016 Regular Prnt $98.53 842,f8 55.'~5 22,589.60
04-07-2016 Regular Pmt 898.53 840.97 57.Sb 21,748,63
OS-Q7-Z4l b Regu~ar Prnt 898.53 844.9a 53.63 2Q,903,73
Q6-07-20I6 Regulax Pmt 89$.~3 $45.27 53.26 20,058.46
0?-07-201 b Regular Pmt 898.53 849.07 49.46 19,209.39
08-07-2016 Regular Prnt 898.53 $49.59 48.94 l$,359.$0
09-07-201 b Regular Pmt 898.~3 8~ 1.75 46.78 17,SQ8.05
10-07-~016 Regular 1'mt 898.53 $SS.36 43.17 16,652.69
11-0'7-2016 Regular Prnt 8~8.53 856.10 42.43 15,796.59
file:i/C:1Userslcmayall~AppDatali.c~ca1\Temp1S41t ~mortization.bsi 11/1/2012
~ , , ' .
Arnortization Page 3 of 3
12-07-20I6 Regular Pmt 898.53 859.58 38.95 14,937.~1
2016 Totals: 10,782.3fi i~,166.53 615.83
01-07'-2017 Regular Pmt 898.53 $60.47 3:8.06 1~,0fi~.54
02-0~'-2017 Re~ular Pmt 898.53 8G2.b6 35.87 I3,~13.88
03-07-2017 ~eguiar Pmt 898.53 868.12 30.41 1~,345.76
04-fl7-2017 Reguiar Pmt 898,53 867.~7 31.46 l 1,478.69
OS-07-2017 Regular Pmt 89'8S3 87p,23 28.34 1t},~Q8:46
06-07-20I7 Regular Pmt 898.53 871.50 27.U3 9,736.9b
07-07-2017 Reg~ular Pmt 898.53 874.~2 24.01 8,862.44
08-07-2017 I~egular Fmt $98.53 875.95 22.5 $ Z,98b.49
49-07-2~17 Regular Pmt 898.53 878.18 20.35 7,108.31
1 Q-07-2017 Regular Pmt $98.53 8$1.Q0 I7.53 b,22Z.31
I 1-Q7-2017 Regular Pmt 898.53 8~2.66 15.87 5,344.65
12-07-201'7 Regular Prnt 898.53 885,35 13.1 S 4,459.30
2017 Totals: 10,7`~2.36 10,477.7I 304.65
Oi-07-20I8 Regular Pmt 898.53 $87.I7 11.3b 3,572.13
OZ-07-20I8 Ftegular Fmt 89$.53 8$9.43 9.10 2,682.70
03-~7-2018 Regular I'mt 898.53 892.3d 6.17 I,79~?.34
04-07 2018 Regular Pmt 89&.53 893:97 4.56 89b.37'
05-07-2fl1:8 R~gular Fmt 8~8.53 89632 2.21 0.05
~018 Totals: 4,492.65 4,459.25 33.~0
I..aan Totals: 54,655.65 49,999,95 4,5S5.7Q
Printed on: 11-01-201 Z
file:i/C:\Us~rs\cmaya111AppData~Local\Temp\54\t_Amortization.bsi 11/1/2012