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HomeMy WebLinkAboutPromissory Installment noten Promissory Installment Note 1. RECITATIONS: Date: August ~~, 2007 Borrowers: David S. and Terry L. Pickel d/b/a Katy & Tory's Place Borrowers' Addresses: 447 E. Birch St., Canton, IL 61520 Lender: City of Canton Place for Payment: 2 North Main Street, Canton, Illinois 61520 Principal Amount: $12,000.00 Term: Monthly (60 months) Monthly Payments: $227.83 Maturity: September 1, 2012 2. PROMISE TO PAY. Borrowers promise to pay lender, or order, any lawful money of the United States of America, the principal amount of twelve thousand dollars ($12,000.00) together with interest at the rate of 5% per annum on the unpaid principal balance from October 1, 2007, until paid in full. 3. INTEREST RATE. Annual interest rate on matured, unpaid amounts shall be at the rate of five percent (5%). 4. PAYMENT TERMS. Borrower will pay this loan in sixty (60) equal payments of two hundred, twenty-seven dollars and eighty-three cents ($227.83) each payment, subject to the amortization schedule attached hereto and incorporated herein by reference. Borrowers' first payment is due October 1, 2007, and all subsequent payments are due on the same day of each month thereafter. Borrowers' final payment will be due on September 1, 2012, 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 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. 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: 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: Borrowers or any guarantors default 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 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 2 of creditor workout, or the commencement of any preceding under any bankruptcy or insolvency laws by or against Borrowers. f. 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. 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 Borrowers to remit any 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 Borrowers' obligations herein. 9. INTEREST. Interest on this debt evidenced by this Note shall not exceed the maximum amount ofnon-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. 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 Borrowers 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. 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. Borrowers 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. 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. 4 . ^. PRIOR TO SIGNING THIS NOTE, BORROWERS READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE. BORROWERS AGREE TO THE TERMS OF THIS NOTE. BORROWERS ACKNOWLEDGE RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE. EXECUTED this 1 -~ day of August, 2007. BORROWER(S) David S. Pickel d/b/a Kay & Tory's Place Terry L. Pickel d/b/a Katy & Tory's Place