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HomeMy WebLinkAboutResolution #3533S RESOLUTION NO. 3533 A RESOLUTION APPROVING A LOAN AGREEMENT BETWEEN THE CITY OF CANTON AND RONALD LONG, AND DIRECTING THE MAYOR AND CITY CLERK TO EXECUTE AND DELIVER SAID AGREEMENT ON BEHALF OF THE CITY OF CANTON, ILLINOIS. WHEREAS, the Community and Industrial Development Committee has determined that it is necessary and in the best interest of the City of Canton to enter into a loan agreement with Ronald Long, hereto attached and herein incorporated as Exhibit "A"; and WHEREAS, the Canton City Council has made a similar determination. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CANTON, Fulton County, Illinois as follows: 1. That the loan agreement hereto attached as Exhibit "A" between the City of Canton and Ronald Long is hereby approved. 2. That the Mayor and City Clerk are hereby authorized and directed to execute and deliver said agreement on behalf of the City of Canton, Illinois. 3. That this Resolution shall be in full force and in effect immediately upon its passage by the City Council of the City of Canton, Illinois. PASSED by the City Council of the City of Canton, Fulton County, Illinois at a regular meeting this 15th day of A~gtLGt- , 2000, upon a roll call vote as follows: AYES: Al-dermen Molleck, Hartford, Sarff, Phillips, Nidiffer, Meade, Shores, May. NAYS: None. ABSENT: Nose . APP OVED: onald E. dwards, Mayor ATTEST: a an Whites, City Clerk ~' ~ LOAN AGREEMENT This agreement dated ~'' ~ ~- ~ Q , 2000 is between the City of Canton, an Illinois municipal corporation (hereinafter called "Lender"), and Ronald Long, (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 Eight Thousand Dollars ($8,000.00), (hereinafter referred to as "loan"), to be disbursed as hereinafter provided, bearing interest at the rate of five percent (5.0%) per annum from the date funds are advanced hereunder. The term of the loan is for five (5) years from the above date. This loan is evidenced by a promissory note of even date herewith 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 sixty (60) equal monthly installments of $150.97 each commencing on the 1~` day of 9-~D - ~~ , 2000 and continuing every month thereafter until said principal is fully paid. 2.2 Interest shall be paid on the unpaid principal balance at the rate of five percent (5.0%) per annum with the first payment due on ~- ~ p , 2000 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 six percent (6.0%) 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 beaz interest at the same rate as noted above for said principal. Acceptance of a late charge by Lender shall 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, if corporation. 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 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 Affairs of the State of Illinois (DCCA) pursuant to Lender's agreement with DCCA. Borrower agrees to make all of its books, accounts and other financial 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 (5) working days of Lender's written request therefore. 6. Re-lending 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 of 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 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 regarded as an "event of default" in the sole discretion of the Lender 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, as 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 condition 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 One Hundred Thirty Three percent (133.0 %) of principal and interest due under this agreement. A. The full and complete personal guarantee of Ronald Long Per Exhibit 1 hereto attached and herein incorporated by reference. 9. Other Parties: This loan agreement is not for the benefit of third parties. Lender shall not be under any obligation to any such parties, whether directly or indirectly interested in the loan agreement, 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 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. 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 even though 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, IL 61520. To Borrower - 46 North 12th, Canton, IL 61520. 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: (1) to merge with or into any other corporation with Lender's prior written consent, (2) to make a public offering of its stock, or, (3) to take any other corporate action that the Borrower deems to be in its 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 require 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 loss payee thereon. 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, marital 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 1964 and Section 623 of the Economic Opportunity Act of 1964, as amended, 42, U.S.C., S 2971c. IN WITNESS WHEREOF, Lender and Borrower have executed this agreement as of the date first above-written. PROMISSORY NOTE Canton, Dlinois Date O -~ / -~~ For good and valuable consideration, I, Ronald Long, owner of property located at 26 South Main, promise to pay to the order of the City of Canton, an Illinois Municipal Corporation, the sum of $8,000 together with interest, thereon at the rate of Five Percent (5%) per annum from the date hereof to and including ~-.~,d •-GY~ (Date of 1" payment). PAYMENT SCHEDULE: (A) Payments shall be paid in sixty (60) equal monthly installments of $150.97 each commencing on ~ •- X10 - CAD > and continuing every month thereafter until the principal is paid in full. (B) Interest: Interest shall be paid on the unpaid principal balance at the rate of Five Percent (5%) per annum with the first payment due on ~' ' ~O C~ O ,and then continuing every month thereafter 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 the principal. Interest shall be considered unpaid if not received by the City of Canton within 7 calendar days following the due date. Borrower shall have the right to prepay any and all interest and principal at any time without penalty or additional interest. Ronald Long hereby irrevocably empowers any attorney at any time hereafter to appear for her in any court in term time or vacation, and confess judgment against her including any guarantor 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 immediate execution. ~j DATE his / of 2000 Sig ture , Address: Ronald Long 46 North 12th Canton, IL 61520 BORROWER: Ronald Long DATE: $ -/~ DD ADDRESS: 46 North 120i Canton, IL 61520 LENDER: City of Canton, an Illinois municipal corporation BY: Mayor DATE: $ -J ~- OO ADDRESS: 210 E. Chestnut St., Canton, IL 61520 PHONE: (309) 647-4818 PHONE: (309) 647-0065/1288 GUARANTEE BY BORROWER For value received, the undersigned, Ronald Long hereby guarantees payment of the foregoing Note at maturity or at any time thereafter, with interest as specified therein, waiving presentment, demand, notice, protect, 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 of 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. /~~ ~ Si ned 4~'~a%~~/' l/Jn Date !~ "r ~~ ~d g Ronald Long MORTGAGE AND LOAN ANALYSIS Princi a 8,000.00 Ronald Long Annual interest rate a :8.25) 5.000 46 North 12th Len th ofloan in ears 5 Canton, IL 61520 Pa ment eriods er ear 12 Start date ofloan 9100 Payment due of each month Month) a ments 150.97 Number of payments 60 Pay to: City of Canton, Community Development, 210 Princi a 8,000.00 East Chestnut St` , Canton, IL 61520 Total interest 1, 058.19 Total loan cost 9, 058.19 PAYMENT NUMBER PAYMENT DATE BEGINNING BALANCE INTEREST PRINCIPAL BALANCE ACCUMULATNE INTEREST 1 9/00 8,000.00 33.33 117.64 7,882.36 33.33 2 10/00 7,882.36 32.84 118.13 7,764.24 66.18 3 11 /00 7, 764.24 32.35 118.62 7, 645.62 98.53 4 12/00 7,645.62 31.86 119.11 7,526.50 130.38 5 1/01 7,526.50 31.36 119.61 7,406.90 161.74 6 2/01 7,406.90 30.86 120.11 7,286.79 192.61 7 3/01 7,286.79 30.36 120.61 7,166.18 222.97 8 4/01 7,166.18 29.86 121.11 7,045.07 252.83 9 5/01 7,045.07 29.35 121.62 6,923.45 282.18 10 6/01 6,923.45 28.85 122.12 6,801.33 311.03 11 7/01 6,801.33 28.34 122.63 6,678.70 339.37 12 8/01 6,678.70 27.83 123.14 6,555.56 367.20 13 9/01 6,555.56 27.31 123.66 6,431.90 394.51 14 10/01 6,431.90 26.80 124.17 6,307.73 421.31 15 11 /01 6, 307.73 26.28 124.69 6,183.05 447.59 16 12101 6,183.05 25.76 125.21 6,057.84 473.36 17 1 /02 6, 057.84 25.24 125.73 5, 932.11 498.60 18 2/02 5,932.11 24.72 126.25 5,805.86 523.31 19 3/02 5,805.86 24.19 126.78 5,679.08 547.50 20 4/02 5,679.08 23.66 127.31 5,551.77 571.17 21 5/02 5,551.77 23.13 127.84 5,423.93 594.30 22 6/02 5,423.93 22.60 128.37 5,295.56 616.90 23 7/02 5,295.56 22.06 128.91 5,166.66 638.96 24 8/02 5,166.66 21.53 129.44 5, 037.22 660.49 25 9/02 5,037.22 20.99 129.98 4,907.23 681.48 26 10/02 4,907.23 20.45 130.52 4,776.71 701.93 27 11/02 4,776.71 19.90 131.07 4,645.64 721.83 28 12/02 4,645.64 19.36 131.61 4,514.03 741.19 29 1/03 4,514.03 18.81 132.16 4,381.87 760.00 30 2/03 4,381.87 18.26 132.71 4,249.16 778.25 31 3/03 4,249.16 17.70 133.27 4,115.89 795.96 32 4/03 4,115.89 17.15 133.82 3, 982.07 813.11 33 5/03 3, 982.07 16.59 134.38 3, 847.69 829.70 34 6103 3,847.69 16.03 134.94 3,712.76 845.73 35 7/03 3,712.76 15.47 135.50 3,577.26 861.20 36 8/03 3,577.26 14.91 136.06 3,441.19 876.11 37 9/03 3,441.19 14.34 136.63 3,304.56 890.45 38 10/03 3, 304.56 13.77 137.20 3,167.36 904.21 39 11 /03 3,167.36 13.20 137.77 3, 029.59 917.41 40 12/03 3, 029.59 12.62 138.35 2, 891.24 930.04 41 1 /04 2, 891.24 12.05 138.92 2, 752.32 942.08 42 2/04 2,752.32 11.47 139.50 2,612.82 953.55 43 3/04 2,612.82 10.89 140.08 2,472.73 964.44 44 4/04 2,472.73 10.30 140.67 2,332.07 974.74 45 5/04 2, 332.07 9.72 141.25 2,190.81 984.46 46 6/04 2,190.81 9.13 141.84 2, 048.97 993.58 47 7/04 2, 048.97 8.54 142.43 1, 906.54 1, 002.12 48 8/04 1,906.54 7.94 143.03 1,763.51 1,010.07 49 9/04 1, 763.51 7.35 143.62 1, 619.89 1, 017.41 50 10/04 1,619.89 6.75 144.22 1, 475.67 1, 024.16 51 11/04 1,475.67 6.15 144.82 1,330.85 1,030.31 52 12/04 1, 330.85 5.55 145.42 1,185.42 1, 035.86 53 1/05 1,185.42 4.94 146.03 1,039.39 1,040.80 54 2/05 1, 039.39 4.33 146.64 892.75 1, 045.13 55 3/05 892.75 3.72 147.25 745.50 1, 048.85 56 4/05 745.50 3.11 147.86 597.64 1, 051.95 57 5/05 597.64 2.49 148.48 449.16 1, 054.44 58 6/05 449.16 1.87 149.10 300.06 1, 056.32 59 7/05 300.06 1.25 149.72 150.34 1,057.57 60 8/05 150.34 0.63 150.34 0.00 1,058.19 Ctty Of Canton DCCA Loan Account 210 E. Chestnut St. Canton, lL 61520-2797 Pay to the order 1002 8 70-130/711 / 0~0 ~ ~ 5500700193 ~ti~ o-a / 0'tJ $ 8000, b o Nonveat Bank Illinois, Nr4. S' ~/(j S 2 NoRh Main Sheet Canton, IL 81520 i:07LL0L307~: Dollars .. /~ , ~ /, 5500 ?00L93~i' 69 Li 69L [i LOAN AGREEMENT This ageement dated , 2000 is between the City of Canton, an Illinois municipal corporation (hereinafter called "Lender"), and Ronald Long, (hereinafter called "Borrower"). In consideration of the mutual covenants and ageements contained herein, Lender and Borrower agee as follows: 1. Loan Terms: Lender agees to loan the principal sum of Eight Thousand Dollars ($8,000.00), (hereinafter referred to as "loan"), to be disbursed as hereinafter provided, bearing interest at the rate of five percent (5.0%) per annum from the date funds are advanced hereunder. The term of the loan is for five (5) years from the above date. This loan is evidenced by a promissory note of even date herewith 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 sixty (60) equal monthly installments of $150.97 each commencing on the 1 ~` day of , 2000 and continuing every month thereafter until said principal is fully paid. 2.2 Interest shall be paid on the unpaid principal balance at the rate of five percent (5.0%) per annum with the first payment due on , 2000 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 six percent (6.0%) 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 shall 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, if corporation. 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 ageement. 3.3 If a corporation, a certified 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 Affairs of the State of Illinois (DCCA) pursuant to Lender's agreement with DCCA. Borrower agrees to make all of its books, accounts and other financial 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 (5) working days of Lender's written request therefore. 6. Re-lending 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 of 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 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 regarded as an "event of default" in the sole discretion of the Lender 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, as 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 similaz 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 awazded 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 condition 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 One Hundred Thirty Three percent (133.0 %) of principal and interest due under this agreement. A. The full and complete personal guazantee of Ronald Long Per Exhibit 1 hereto attached and herein incorporated by reference. 9. Other Parties: This loan agreement is not for the benefit of third parties. Lender shall not be under any obligation to any such parties, whether directly or indirectly interested in the loan agreement, to pay any chazges or expenses incident to compliance by Borrower with any of the duties or obligations imposed hereby. 10. Costs and Eapenses: 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 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. 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 PROMISSORY NOTE Canton, Dlinois Date For good and valuable consideration, I, Ronald Long, owner of property located at 26 South Main, promise to pay to the order of the City of Canton, an Illinois Municipal Corporation, the sum of $8,000 together with interest, thereon at the rate of Five Percent (5%) per annum from the date hereof to and including (Date of 1'` payment). PAYMENT SCHEDULE: (A) Payments shall be paid in sixty (60) equal monthly installments of 5150.97 each commencing on ,and continuing every month thereafter until the principal is paid in full. (B) Interest: Interest shall be paid on the unpaid principal balance at the rate of Five Percent (5%) per annum with the first payment due on and then continuing every month thereafter 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 the principal. Interest shall be considered unpaid if not received by the City of Canton within 7 calendar days following the due date. Borrower shall have the right to prepay any and all interest and principal at any time without penalty or additional interest. Ronald Long hereby irrevocably empowers any attorney at any time hereafter to appear for her in any wort in term time or vacation, and confess judgment against her including any guarantor hereof, without process, of this Note in favor of any legal holder, for all sums owing hereon, interest, vests, and reasonable attorney's fees, and to waive all right of appeal, release all errors and wnsent to immediate execution. DATED: This day of 2000 Signature Address: Ronald Long 46 North 12th Canton, IL 61520 GUARANTEE BY BORROWER For value received, the undersigned, Ronald Long hereby guarantees payment of the foregoing Note at maturity or at any time thereafter, with interest as specified therein, waiving presentment, demand, notice, protect, 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 of 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. Signed Date Ronald Long MORTGAGE AND LOAN ANALYSIS Ronald Long rnna a 8,000.00 Annual interest rate a :8.25 5 000 46 North 1Zth Len of/oan m ears . 5 Canton, IL 61520 Pa ment nods rear 12 Start date of/oan 9/00 Payment due of each month Monthry payments 150 97 Number of payments 60 Pay to: City of Canton, Community Development, 210 Princi a 8 000 00 East Chestnut St., Canton, IL 61520 rora~inrerest , . 1 058.19 Totalloan cost 9,058.19 PAYMENT NUMBER 1 PAYMENT DATE 9/00 BEGINNING BALANCE 8,000.00 INTEREST 33.33 PRINCIPAL 117.64 BALANCE 7,882.36 ACCUMULATNE INTEREST 33.33 2 10/00 7, 882.36 32.84 118.13 7, 764.24 66.18 3 11/00 7,764.24 32.35 118.62 7 645.62 98.53 4 12/00 7,645.62 31.86 119.11 7,526.50 130.38 5 1 /01 7, 526.50 31.36 119.61 7 406.90 161.74 6 2/01 7,406.90 30.86 120.11 7,286.79 192.61 7 3/01 7,286.79 30.36 120.61 7,166.18 222.97 8 4/01 7,166.18 29.86 121.11 7,045.07 252.83 9 5/01 7,045.07 29.35 121.62 6 923.45 282.18 10 6/01 6,923.45 28.85 122.12 6,801.33 311.03 11 7/01 6,801.33 28.34 122.63 6,678.70 339.37 12 8/01 6,678.70 27.83 123.14 6,555.56 367.20 13 9/01 6,555.56 27.31 123.66 6,431.90 394.51 14 10/01 6,431.90 26.80 124.17 6,307.73 421.31 15 11/01 6,307.73 26.28 124.69 6,183.05 447.59 18 12/01 6,183.05 25.76 125.21 6, 057.84 473.36 17 1/02 6,057.84 25.24 125.73 5,932.11 498.60 18 2/02 5, 932.11 24.72 126.25 5, 805.86 523.31 19 3/02 5,805.86 24.19 126.78 5,679.08 547.50 20 4/02 5 679.08 23.66 127.31 5,551.77 571.17 21 5/02 5,551.77 23.13 127.84 5,423.93 594.30 22 6/02 5,423.93 22.60 128.37 5,295.56 616.90 23 7/02 5,295.56 22.06 128.91 5,166.66 638.96 24 8/02 5,166.66 21.53 129.44 5, 037.22 660.49 25 9/02 5 037.22 20.99 129.98 4,907.23 681.48 26 10/02 4, 907.23 20.45 130.52 4, 776.71 701.93 27 11/02 4,776.71 19.90 131.07 4,645.64 721.83 28 12/02 4,645.64 19.36 131.61 4,514.03 741.19 29 1/03 4,514.03 18.81 132.16 4 381.87 760.00 30 2/03 4 381.87 18.26 132.71 4,249.16 778.25 31 3/03 4,249.16 17.70 133.27 4,115.89 795.96 32 4/03 4,115.89 17.15 133.82 3, 982.07 813.11 33 5/03 3,982.07 16.59 134.38 3,847.69 829.70 34 6/03 3,847.69 16.03 134.94 3,712.76 845.73 35 7/03 3,712.76 15.47 135.50 3,577.26 861.20 36 8/03 3,577.26 14.91 136.06 3,441.19 876.11 37 9/03 3,441.19 14.34 136.63 3,304.56 890.45 38 10/03 3,304.56 13.77 137.20 3,167.36 904.21 39 11 /03 3,167.36 13.20 137.77 3, 029.59 917.41 BORROWER: LENDER: Ronald Long City of Canton, an Illinois municipal corporation BY: Mayor DATE: ADDRESS: 46 North 12~' Canton, IL, 61520 PHONE: (309) 647-4818 DATE: ADDRESS: 210 E. Chestnut St., Canton, IL 61520 PHONE: (309) 647-0065/1288