5.11. SR 12-18-1995 - Laserfiche WebLink

Home Browse Search

EXTENSION AGREBENT This Extension Agreement, dated as of December 1, 1995, among the CITY OF ELK RIVER, a Minnesota municipal corporation (the "City "), SCHERER LIMITED PARTNERSHIP, a Minnesota limited partnership (the " Pa:ctnership") , and HIGHLAND BANK (formerly Security State Bank of St. Michael), a Minnesota banking association ( the "Bank ") , WITNESSETH : WHEREAS, pursuant to a Loan and Purchase Agreement dated as of December 1, 1985, among the City, the Partnership and the Bank (the "Loan Agreement ") , the City has issued its $1,400,000 City of Elk River Industrial Development Revenue Bond (Scherer Limited Partnership Project) (the "Bond ") to the Bank and loaned the proceeds of the Bond to the Partnership; and WHEREAS, the Loan Agreement obligates the Partnership to make Loan Repayments in amounts and at times sufficient to pay principal of and interest on the Bond; and WHEREAS, the Bond bears interest at a variable rate that is adjusted quarterly, on January 1, April 1, July 1 and October J. of each year, to equal the rate which is one percent per annum above the bond equivalent yield on United States Treasury bills having maturities of 180 days, as. established on the date of each such interest rate adjustment, but which rate shall never be less than 7.00 percent per annum nor greater than 13.00 percent per annum; and • WHEREAS, the Bond is payable in monthly installments of principal and interest (the amount of which is adjusted on each interest rate adjustment date) , based on a twenty-year amortization schedule, which payments commenced on February 1, 1986; and WHEREAS, the Bond provides for a final payment on January 1, 1996 of all principal of and interest due on the Bond (the "Balloon Payment "); and WHEREAS, the Partnership and the Bank desire to eliminate the Balloon Payment and extend the final maturity of the Bond until January 1, 2006, as provided herein, and have requested the City to consent to said extension; NOW, THEREFORE, the parties hereto covenant and agree as follows: 1. The Balloon Payment to have become due on January 1, 1996 is hereby eliminated, and the twenty -year principal amortization :provided for in the Bond is hereby extended to and until a final maturity date of -January 1, 2006, such date being twenty years after the commencement of amortization on the Bond, with the effect of such modification to the original Bond terms being to extend the requirement that monthly payments of principal and interest be made on the first day of each month from January 1, 1996 to January 1, 2006. 2. The Loan Repayment obligation of the Partnership pursuant to Section 5.01 of the Loan Agreement is hereby amended to conform to the modified schedule of payments on the Bond set forth in paragraph 1 hereof. B096143 SL185 -1 1