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HomeMy WebLinkAboutResolution #5051 (Fuller Jewelry) RESOLUTION NO.5051 A RESOLUTION APPROVING A PROMISSORY INSTALLMENT LOAN AGREEMENT WITH DANIEL FULLER,D/B/A FULLER'S JEWELRY AND THE CITY OF CANTON AND DIRECTING THE MAYOR TO EXECUTE AND DELIVER SAID AGREEMENT ON BEHALF OF THE CITY OF CANTON,ILLINOIS. WHEREAS, the Revolving Loan Committee of the City of Canton has determined that it is necessary and in the best interests of the City of Canton to enter into a promissory installment loan agreement with Daniel Fuller, d/b/a Fuller's Jewelry, Inc., as set forth in Exhibit"A"attached hereto and incorporated herein; and WHEREAS,the City Council of the City of Canton has made a similar determination. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF CANTON,ILLINOIS,AS FOLLOWS: 1. That the agreement attached hereto and incorporated herein as Exhibit"A" is hereby approved by the Canton City Council. 2. That the Mayor of the City of Canton, Illinois is 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, Illinois and approval by the Mayor thereof. PASSED by the City Council of the City of Canton, Illinois at a regular meeting this 3rd day of May 2016 upon a roll call vote as follows: AYES: Alderman Craig West, Tad Putrich, Ryan Mayhew,Justin Nelson,John Lovell,Angela Hale NAYS: None ABSENT: Alderman Jim Nelson ABSTAIN: Alderman Gerald Ellis APPROVED: Jeffe , ayor ATTE 1�cs{ Diana Pav ey-kMll rCilylff erk Promissory Installment Note 1. RECITATIONS: Date: Mayes, 2016 Borrowers: Daniel Fuller, d/b/a Fuller's Jewelry, Inc. Borrowers' Addresses: 46 N. Main St., Canton, IL 61520 Lender: City of Canton Place for Payment: 2 North Main Street, Canton, Illinois 61520 Principal Amount: $33,000.00 Term: Monthly (60 months) Monthly Payments: $592.97 Maturity: June 1, 2021 2. PROMISE TO PAY. Borrower promises to pay lender, or order, any lawful money of the United States of America, the principal amount of thirty-three thousand dollars ($33,000.00) together with interest at the rate of 3% per annum on the unpaid principal balance from July 1, 2016, until paid in full. Borrower shall use the funds for the demolition of the reconstruction the north wall and the repair and restoration of the west (rear) wall of the building located at 46 N. Main Street, Canton, Illinois. The repair shall commence within thirty (30) days of the distribution of said funds. The repair and restoration of said wall shall be completed within six (6) months of said distribution of said funds. Should said repair and restoration not be commenced and completed within the parameters established by this Section, the Borrower shall be considered in default and Lender shall be able to collect said funds pursuant to Sections 7 and 8 of said Note. 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 (60) equal payments of five hundred ninety two dollars and ninety seven cents ($592.97) each payment, subject to the amortization schedule attached hereto and incorporated herein by reference. Borrower's first payment is due July 1, 2016, and all subsequent payments are due on the same day of each month thereafter. Borrower's final payment will be due on June 1, 2021, and will be for all principal and accrued interest not yet paid. Payments include principal and interest. 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 NLR Documents/Agreements 5/2/2016 basis; that is, by applying the ratio of the 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. Borrower 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 Borrower of obligation to continue to make payments under the amortization schedule. Rather, early payments will reduce the principal balance due and may result in Borrower making fewer payments. Borrower agrees not to send Lender's payments marked "paid in full", "without recourse", or similar language. If Borrower sends such a payment, Lender may accept it without losing any of Lender's rights under this note, and Borrower 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. Borrower 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 Borrower defaults 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 Borrower 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. Borrower 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: Borrower fails to make any payment when due under this note. b. Other defaults: Borrower fails 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: Borrower or any guarantors defaults under any loan, extension of credit, security agreement, purchase for sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of the Borrower's property or borrowers' ability to repay this note or perform Borrower's obligation under this note or any other related documents. NLR Documents/Agreements 5/2/2016 d. False statements: Any warranty, representation or statement made or furnished to Lender by Borrower or on Borrower's 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 Borrower's existence as a business, the insolvency of Borrower, the appointment of a receiver for any part of Borrower's property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any preceding under any bankruptcy or insolvency laws by or against Borrower. E Adverse change: A material adverse change occurs in Borrower's financial condition, or Lender believes the prospect of payment or performance of this note is impaired. g. Insecurity: Lender in good faith believes itself insecure. 8. INTEREST ON PAST DUE INSTALLMENTS AND CHARGES. All past 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 Borrower to remit any payment by the fifteenth (15th) day following the date that such payment is due shall incur a thirty-five dollar ($35.00) late fee. If Borrower fails to remit payment by the thirtieth (30th) 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 Borrower's 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. NLR Documents/Agreements 5/2/2016 11. ATTORNEY'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 brought for collection or enforcement, or if it is collected or enforced through probate, bankruptcy, or other judicial proceeding, then Borrower shall pay the Lender all costs of collection and enforcement, including reasonable attorney's fees and expenses in addition to other amounts due. 12. CONFESSION OF JUDGEMENT. Borrower hereby irrevocably authorizes and empowers any attorney at law to appear in any court of record and to confess judgment against Borrower 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. Borrower waives 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. Borrower hereby waives and releases any and all claims or causes of action which Borrower might have against any attorney acting under the terms of authority which Borrower has granted herein arising out of or connected with the confession of judgment hereunder. 13. 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. 14. 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. 15. DESCRIPTIVE HEADINGS. The descriptive headings used herein are for convenience of reference only and they are not intended to have any effect whatsoever in determining the rights or obligations under this Note. 16. CONSTRUCTION. The pronouns used herein shall include, where appropriate, either gender or both, singular or plural. 17. 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, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE. BORROWER AGREES TO THE TERMS OF THIS NOTE. NLR Documents/Agreements 5/2/2016 BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE. EXECUTED this day of May, 2016. BORROWER: DANIEL FULLER, d/b/a Fuller Jewelry, Inc. By: ga4:�—�R Daniel Fuller Attest: By: C�! NLR Documents/Agreements 5/2/2016 EY. A Futter Jewelry Amortization Schedule Enter values Loan amount -$ 33,000.00-.I Annual interest rate 3.000% Loan - period in years g Start date of loan 6/1/20161 Monthly payment S 592.97 Number of payments 60 Total interest $ 2,578.01 Total cost of loan S 35,578.01 Payment Beginning Ending No. Date Balance Payment Principal Interest Balance 1 7/1/2016 $ 33,000.00 $ 592.97 $ 510.47 $ 82.50 $ 32,489.53 2 8/1/2016 $ 32,489.53 S 592.97 5 511.74 $ 81.22 $ 31,977.79 3 9/1/2016 $ 31,977.79 $ 592.97 $ 513.02 $ 79.94 $ 31,464.77 4 10/1/2016 $ 31,464.77 $ 592.97 $ 514.30 $ 78.66 $ 30,950.46 5 11/1/2016 $ 30,950.46 $ 592.97 $ 515.59 $ 77.38 $ 30,434.87 6 12/1/2016 $ 30,434.87 $ 592.97 $ 516.88 $ 76.09 $ 29,917.99 7 1/1/2017 $ 29,917.99 S 592.97 $ 518.17 $ 74.79 $ 29,399.82 8 2/1/2017 $ 29,399.82 S 592.97 S 519.47 $ 73.50 $ 28,880.35 9 3/1/2017 $ 28,880.35 $ 592.97 $ 520.77 $ 72.20 $ 28,359.59 10 4/1/2017 S 28,359.59 $ 592.97 $ 522.07 $ 70.90 $ 27,837.52 11 5/1/2017 $ 27,837.52 $ 592.97 $ 523.37 $ 69.59 $ 27,314.15 12 6/1/2017 $ 27,314.15 $ 592.97 $ 524.68 $ 68.29 $ 26,789.47 13 7/1/2017 S 26,789.47 $ 592.97 $ 525.99 $ 66.97 $ 26,263.47 14 8/1/2017 S 26,263.47 $ 592.97 $ 527.31 $ 65.66 $ 25,736.16 15 9/1/2017 $ 25,736.16 $ 592.97 $ 528.63 $ 64.34 $ 25,207.54 16 10/1/2017 $ 25,207.54 $ 592.97 $ 529.95 $ 63.02 $ 24,677.59 17 11/1/2017 $ 24,677.59 $ 592.97 $ 531.27 $ 61.69 $ 24,146.32 18 12/1/2017 $ 24,146.32 $ 592.97 $ 532.60 $ 60.37. $ 23,613.72 19 1/1/2018 $ 23,613.72 $ 592.97 $ 533.93 $ 59.03 $ 23,079.78 20 2/1/2018 $ 23,079.78 $ 592.97 $ 535.27 $ 57.70 $ 22,544.52 21 3/1/2018 $ 22,544.52 S 592.97 $ 536.61 $ 56.36 $ 22,007.91 22 4/1/2018 S 22,007.91 $ 592.97 $ 537.95 $ 55.02 $ 21,469.96 23 5/1/2018 $ 21,469.96 $ 592.97 $ 539.29 $ 53.67 $ 20,930.67 24 6/1/2018 $ 20,930.67 $ 592.97 $ 540.64 $ 52.33 S 20,390.03 25 7/1/2018 $ 20,390.03 $ 592.97 $ 541.99 $ 50.98 $ 19,848.04 26 8/1/2018 $ 19,848.04 $ 592.97 $ 543.35 $ 49.62 $ 19,304.69 w Payment Beginning Ending No. Date Balance Payment Principal Interest Balance 27 9/1/2018 $ 19,304.69 $ 592.97 $ 544.71 $ 48.26 $ 18,759.99 28 10/1/2018 $ 18,759.99 $ 592.97 $ 546.07 S 46.90 $ 18,213.92 29 11/1/2018 $ 18,213.92 $ 592.97 $ 547.43 $ 45.53 S 17,666.49 30 12/1/2018 $ 17,666.49 $ 592.97 $ 548.80 $ 44.17 $ 17,117.69 31 1/1/2019 $ 17,117.69 $ 592.97 $ 550.17 $ 42.79 $ 16,567.52 32 2/1/2019 $ 16,567.52 $ 592.97 $ 551.55 $ 41.42 $ 16,015.97 33 3/1/2019 $ 16,015.97 $ 592.97 $ 552.93 $ 40.04 $ 15,463.04 34 4/1/2019 $ 15,463.04 $ 592.97 $ 554.31 $ 38.66 $ 14,908.73 35 5/1/2019 $ 14,908.73 $ 592.97 $ 555.69 $ 37.27 $ 14,353.04 36 6/1/2019 $ 14,353.04 $ 592.97 $ 557.08 $ 35.88 $ 13,795.95 37 7/1/2019 $ 13,795.95 $ 592.97 $ 558.48 $ 34.49 $ 13,237.48 38 8/1/2019 $ 13,237.48 $ 592.97 $ 559.87 $ 33.09 $ 12,677.60 39 9/1/2019 $ 12,677.60 $ 592.97 S 561.27 S 31.69 S 12,116.33 40 10/1/2019 $ 12,116.33 $ 592.97 $ 562.68 $ 30.29 $ 11,553.65 41 11/1/2019 $ 11,553.65 $ 592.97 $ 564.08 $ 28.88 $ 10,989.57 42 12/1/2019 $ 10,989.57 $ 592.97 S 565.49 $ 27.47 $ 10,424.08 43 1/1/2020 $ 10,424.08 $ 592.97 $ 566.91 $ 26.06 $ 9,857.17 44 2/1/2020 $ 9,857.17 $ 592.97 $ 568.32 $ 24.64 $ 9,288.85 45 3/1/2020 $ 9,288.85 $ 592.97 $ 569.74 S 23.22 $ 8,719.10 46 4/1/2020 $ 8,719.10 $ 592.97 $ 571.17 S 21.80 $ 8,147.93 47 5/1/2020 $ 8,147.93 $ 592.97 $ 572.60 $ 20.37 $ 7,575.34 48 6/1/2020 $ 7,575.34 $ 592.97 $ 574.03 $ 18.94 $ 7,001.31 49 7/1/2020 $ 7,001.31 $ 592.97 $ 575.46 $ 17.50 $ 6,425.85 50 8/1/2020 $ 6,425.85 $ 592.97 $ 576.90 $ 16.06 $ 5,848.94 51 9/1/2020 $ 5,848.94 $ 592.97 $ 578.34 S 14.62 $ 5,270.60 52 10/1/2020 $ 5,270.60 $ 592.97 $ 579.79 $ 13.18 $ 4,690.81 53 11/1/2020 $ 4,690.81 $ 592.97 S 581.24 $ 11.73 $ 4,109.57 54 12/1/2020 $ 4,109.57 $ 592.97 $ 582.69 $ 10.27 $ 3,526.88 55 1/1/2021 $ 3,526.88 $ 592.97 $ 584.15 $ 8.82 $ 2,942.73 56 2/1/2021 $ 2,942.73 S 592.97 $ 585.61 $ 7.36 $ 2,357.12 57 3/1/2021 $ 2,357.12 $ 592.97 $ 587.07 $ 5.89 $ 1,770.04 58 4/1/2021 $ 1,770.04 $ 592.97 $ 588.54 $ 4.43 $ 1,181.50 59 5/1/2021 $ 1,181.50 $ 592.97 $ 590.01 $ 2.95 $ 591.49 60 6/1/2021 $ 591.49 $ 592.97 $ 591.49 $ 1.48 $