HomeMy WebLinkAboutResolution #3052RESOLUTION IVC. 305?
A RESOLUTION APPR01/IN3 AN AGREE7vENT BEZWEEN THE CITY OF CANTON
AND LARCM4 PIZZA, INC. AND DIRECTINa THE M41R~R AND CITY CLERK TO
EXECUTE AND DELIVER SAID LOAN pGREEIvEI~lT ON BEHALF OF THE CITY OF
CANTON.
WI-EREAS, the City of Canton has entered into negotiations
with LaRoma Pizza, Inc. for a loan from the City's Revolving Loan
Fund for the amount of $35,000.00; and,
WI-EREAS, 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,
VVt-EREAS, the Canton City Council has determined that it is
desirable and in the best interest of the City of Canton to
approve said agreement.
NUJV, 11-EREFORE, BE I T RESOLVED BY TI-E G I TY COLIC 1 L OF THE
CITY OF CANTON, Fulton County, Illinois as follows:
1. That the Loan Agreement between the City of Canton and
LaRoma 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.
1
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 21s.t day of '-~3' ,
1991 upon a roll call vote as follows:
AYES: 1~ldenr_men iKay, Barnett, Bohlen, Banff, Coay, TMlolleck,
NAYS : None .
ABSENT: Alclerm~n. ?'~1eac3e, Steck.
APPRCNED:
c-~
Donald E. Edwards, Mayor
ATTEST: r
~-° ZL~AJ
Nancy Whites, City Clerk
2
LC1rAN AC~iEOVF~VT
This Agreement dated as of 1991 is between the
City of Canton, an Illinois municipal corporation (hereinafter
called "Lender"), and LaRoma 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-five
Thousand Dollars ($35,000.00) (hereinafter referred to as "Loan"),
to be disbursed as hereinafter provided, bearing interest at the
rate of 5.0 percent per annum from the date funds are advanced
hereunder. The term of the loan is for seven (7) years from the
above mentioned date.
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
Revolving Loan Fund Guidelines and in accordance with Lender's
loan terms and conditions relating thereto.
2. Repayment:
Repayment of this loan shall be made as follows:
2.1 Principal shall be paid in eighty-four (84) equal monthly
installments of Four Hundred Sixteen and 67/100 Dollars ($416.67)
each com~r~encing on the 1st day of July and continuing every month
thereafter until said principal is fully paid.
1
2.2 Interest shall be paid on the unpaid principal balance at the
rate of 5.0 percent per annum with the first payment due on July
1st, 1991 and then continuing every month thereafter 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 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 interest
and principal at any time without penalty or additional interest.
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.
2
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.
3.3 If a corporation, a certified copy of Borrower's corporate
resolution authorizing the 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) are executed, and the
documentation called for in paragraph 3 above and any other
conditions precedent to disbursement of funds under this award are
fully satisfied.
4.2 In addition to any of the foregoing, loan funds will only be
disbursed upon completion of all of the following in form and
substance satisfactory to the Lender:
(a) Collateral security agreement(s) specified in paragraph 8;
(b) Evidence of compliance with other terms and conditions
specified in paragraph 18.
4.3 Borrower shall maintain a separate ledger for funds obtained
hereunder.
5. Reporting and Access Requirements:
Borrower understands that Lender is required to make annual,
semi-annual, and other periodic reports and audits to the
Department of Commerce and Community Development (DCCA) pursuant
to Lender's agreement with DCX:A. Borrower agrees to make all of
its books, accounts and other financial data available to Lender,
or, Lender's authorized gents (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 therefor.
6. Relending and Assignment:
6.1 Borrower shall not assign any right, title or interest in and
to this agreement, or, to any security pledged in repayment of
this loan, or, relend any portion of the loan funds received or to
be received from Lender, 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 imriediately 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 regarding as an "event of
default" in the sole discretion of the Lender:
4
(A) Failure, inability or unwillingness of Borrower to carry
out or comply with the specific activities in its loan application
as approved by Lender, or LEnder's loan terms and conditions, or
any terms or conditions of this Loan Agreement, or any applicable
federal or state laws, or with such DCCA regulations as may become
applicable at any time.
(B) Failure of Borrower to pay any installment 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 becoming insolvent or
bankrupt, 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 appointment of
a receiver, trustee or liquidator of Borrower, o~ of a substantial
part of its assets, being authorized or instituted by or against
it; or (3) proceedings under any bankruptcy, reorganization,
readjustment of debt, insolvency, dissolution, liquidation or
other similar law of any jurisdiction being authorized or
instituted by or against this Borrower.
(D) Submission or making of any report, statement, warranty,
or representation by Borrower or agent on its behalf to Lender or
DCCA in connection with the financial assistance awarded hereunder
which is false, incomplete or incorrect in any material respect.
(E) Failure of Borrower to remedy any material adverse change
in its financial or other condition arising since the date of this
agreement, which conditions was an inducement to this loan.
(F) Any attempt 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 obtaining Lender's written
consent thereto.
8. Collateral:
The Borrower pledges as collateral to secure its indebtedness
under this Loan Agreement, together with such other security as
Lender may require, not to exceed in value 133% of principal and
interest due under this agreement.
(A) The full and complete personal guarantees of Rosolino Puleo
and Salvatore Puleo per Exhibit 1 hereto attached and herein
incorporated by reference.
(B) Borrower agrees to give Lender an inferior security interest
in the real estate and all improvements and fixtures now situated
on or to be hereafter placed on the real property set forth in the
Real Estate Mortgage (Exhibit 2), hereto attached and herein
incorporated by reference, during the term of this Loan Agreement
(C) Per itemization as set forth in the attached Uniform
Commercial Code (Exhibit 3) hereto attached and herein
incorporated by reference.
6
9. Other Parties:
This Loan Agreement is not
Lender shall not be under any
whether directly or indirectly
to pay any charges or expenses
with any of the duties or oblige
for the benefit of third parties.
obligation to any such parties,
interested in the Loan Agreement,
incident to compliance by Borrower
3tions imposed hereby.
10. Costs and Expenses:
Borrower agrees to reimburse Lender for costs and expenses,
court cost, reasonable attorney fees, and all other out-of-pocket
expenses paid by Lender in enforcing the terms and conditions of
this agreement occasioned by Borrower's failure to comply with
such terms and conditions. Borrower hereby irrevocably consents
that all such attorney fees, costs and expenses, and out-of-pocket
expenses may be included in any judgment awarded to Lender in any
proceeding at law or in equity to enforce this agreement.
Borrower hereby irrevocably empowers any attorney at any time
hereafter to appear for Borrower in any court in term time or
vacation, and confess judgment against Borrower, each or any of
us, (as applicable), including any guarantor(s) hereof, without
process of this Loan Agreement in favor of any legal reasonable
attorney's fees, and to waive all right of appeal, release all
errors and consent to immediate execution.
7
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 corporate limits. Both Lender and
Borrower recognize and agree that presently existing jobs are
expected to be retained hereby and new jobs created. Borrower
covenants and agrees to not remove jobs retained or created by use
of this loan from Lender's corporate limits during the term of the
loan as expressed in Paragraph 1 eventhough Borrower may sooner
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:
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: LaRoma Pizza, Inc.
2 Enterprise Drive
Canton, Illinois 61520
8
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.
14. Applicable Laws:
Interpretation of the Loan Agreement shall be governed by the
laws of the State of Illinois.
15. Management of Borrower:
Except as provided to the contrary in this loan agreement, the
Borrower shall have the right: (i) to merge with or into any other
corporation with Lender's prior written consent, (ii) to make a
public offering of its stock, or, (iii) to take any other
corporate action that the borrower deems to be in the best
interest.
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 required
to be insured against until the loan is paid in full, or, in the
case of foreclosure until expiration of the period of redemption.
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 toss payee thereon.
9
17. Retention of Records:
Borrower hereby agrees to retain intact all of its books,
accounts, and other financial data relating to this loan for a
period of four (4) years following the end of Borrower's fiscal
year of the last entry therein and, further, agrees to make the
same available for Lender's inspection upon the same terms and
conditions as set forth in numerical paragraph 5 of this loan
agreement.
18. Other Terms and Conditions:
(A) No person in the United States shall on the grounds of
race, color, religion, sex, age, handicap, martial status, or
national origin, be denied the proceeds of, or be subject to
discrimination under the activities approved as a result of this
loan. Borrower agrees to comply with the applicable regulations
promulgated by the Civil Rights Act of 1;964 and Section 623 of
the Economic Opportunity Act of 1964, as amended, 42. U.S.C.,
S 2971c.
IN WITNESS VVt-EREOF, Lender and Borrower have executed this
Agreement as of the date first above-mentioned.
10
BORROJVER
LaRoma Pizza, Inc., an
Illinois corporation,
BY:
Date:
Address: 2 Enterprise Drive
Canton, III. 61520
Telephone: (309) 647-0594
LENDER ;
City of Canton, an Illinois
municipal corporation,
BY:
Its Mayor
Date:
Address: 210 East Chestnut St.
Canton, III. 61520
Telephone: (309) 647-0065/0020
11
FOR VALUE RECEIVED, the undersigned,
and , hereby
guarantee payment of the foregoing Note at maturity or at any time
thereafter, with interest as specified therein, waiving
presentment, demand, notice, protest, and diligence in collecting,
and we each of us hereby irrevocably empower any attorney at any
time thereafter to appear for us, either or any of us, in any
court in term 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 immediate execution.
DATED: This day of 1991.
(EXHIBIT 1)
promises to pay to the
order of the CITY OF CANTON, an Illinois municipal corporation,
the sum of together with interest,
thereon at the rate of % per annum from the date hereof to
and including , 19
PAYIVENT SCHEDULE:
(a) PRINCIPAL: Principal shall be plaid in ( )
equal semi-annual installments of $ each
commencing on the day of , 1991, and
continuing every six months thereafter until the principal sum of
$ is paid in full.
(b) INTEREST: Interest shall
principal balance at the rate of
payment due on
and
said interest and principal is fully paid.
of each year until
Unpaid interest shall be added to principal and bear interest
at the same rate as noted above for the principal. Interest shall
be considered unpaid if not received by the City of Canton within
7 calendar days following the due date. ,
shall have the right to prepay andy and all interest and principal
at any time without penalty or additional interest.
be paid on the unpaid
per annum with the first
1991 and then on
This Note is specifically made subject to the terrns and
conditions of a certain "Loan Agreement" between
and the City of Canton, dated as of
19 and 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.
To secure the payment of this Note,
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 consent to irrrnediate execution.
DATED: This day of
19
By:
Its President and
Its Vice-President
Corporate Secretary
(Corporate Seal)
(EXHIBIT 2)
F2E~l_ ESTATE NDRTC~C-E
THIS tf~DENTURE WITNESSETH: That the undersigned,
of the City of Canton, in the
County of Fulton and State of Illinois, hereinafter referred to as
the "Mortgagor", does hereby MDFtTGAGE 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 following described real
property, to-wit:
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, refrigeration, lighting, plumbing, water
softening, 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 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 together
with interest thereon, as stipulated in the note hereinafter
referred to, said principal and interest being payable in
semi-annual payments of each commencing on the
day of , 19 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 % per annum from the date hereof, all as more specifically
set forth in one certain note made by the mortgagor of the order
of the mortgagee, bearing even date herewith; and (2) any advances
made by the mortgagee to the mortgagor, or its successor in title,
t~iisam~ir~ga~e°seau~`ta~n~~~~~Tm~efg~i~al~h~h4~lm~T~~g~~~ ~~~cJ~~l~~7v~~c~~
on account of said original note and such additional advances in a
sum in excess of ($ ),
provided that nothing herein contained shall be considered as
limiting the amounts that shall be secured hereby when advanced to
protect the security or in accordance with covenants contained in
the mortgage;and, (3) the performance of the covenants and
agreements herein contained.
A. THE NI~RTCaA~'ORS CG/ENgf~ff
(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 thereof to the
mortgagee upon demand; (3) To keep the improvements now and
hereafter upon said premises insured against damage by fire,
windstorm, and such other hazards as the mortgagee may require to
be insured against, until said indebtedness is fully paid, or in
case of foreclosure until expiration of the period of redemption,
for the full insurable value thereof, in such companies and in
such form as shall be satisfactory 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 discretion, 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 property of 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 proceeding
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 part 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 obtained (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, tapparatus, fixtures or equipment now or
leasefo~rag~eemen~du~ide~ewt~~Lh(~~tl~ R~r~~~~~v~8o'inc4R~~~~RBo~al~r
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 fVDRTC~ORS FURTHER CONEN~WT:
(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
im~riediately repay any moneys, together with interest hereon 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 any moneys in that behalf as above authorized, but
nothing herein contained shall be construed as requiring the
mortgagee to advance any moneys for any purpose not to do any
hereunder; that the mortgagee shall not incur personal liability
because of anything it may do or omit to do hereunder.
(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 delivered.
An additional advance agreement may be given and used for such
advance 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 mortgagee may without notice to the mortgagors,
deal with such successor or successors in interest with reference
to this mortgage and the debt hereby 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 hereunder or
upon the debt hereby secured.
(4) That time is the essence hereof and if default be made in
performance 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 bankruptcy by or against the
mortgagors, of if the mortgagors shall make an assignment for the
benefit of their 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
hereunder, 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 of
said premises during the pendency of such foreclosure suit and the
statutory period of redemption, and such rents, 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 expenses of such
receivership, or on any deficiency decree whether there be a
decree therefor in personam or not; the 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 insurance, taxes or other liens or
assessments, outlays for documentary evidence, 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 including the foreclosure decree and the Master's
Certificate of Sale, and then 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
indebtedness, 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 proceeding, shall be additional indebtedness
tfiereb~ secured. In th~ vent gtgag°ed p~~m~s~s ~e~os~~~d ~~~~
t ereu der, an abstract o t~e mo
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 performance of the same or any other of said covenants;
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 mortgagors hereby transfer, set over,
and assign unto the said City of Canton, an Illinois municipal
corporation, the possession of and all the rents, issues, and
profits now due or which may hereafter become due under and by
virtue of any lease, whether written or oral, or any letting of or
any agreement for the use or occupancy of the hereinbefore
described premises, or any part thereof, whether heretofore 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 hereby 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 suites in connection
with said premises and make such repairs to said premises as it
considers expedient, all its acts nd 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
covenant 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
assessments, 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 forcible entry and detainer.
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 mortgagors and the mortgagees.
IN WITNESS WI-EREOF, we have hereunto set our hands and seals
this day of 1991.
BY:
Its President
BY:
ATTEST;
Corporate Secretary
STATE OF ILLINOIS )
OOUNTY OF FULTON ) ss.
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
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
1991.
Notary Public