4.8. SR 12-21-1995 - Laserfiche WebLink

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• EXTENSION AGREEA ENT This Extension Agreement, dated as of December 1, 1995, among the CITY OF ELK RIVER, a Minnesota municipal corporation (the "City "), JOHN PLAISTED (the "Borrower ") , as successor to Jay Morrell & John Plaisted Partnership, a Minnesota general partnership (the "Partnership "), and HIGHLAND BANK (formerly Security State Bank of St. Michael), a Minnesota banking assockftion (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 $400,000 City of Elk River Industrial Development Revenue Bond (Jay Morrell & John Plaisted 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, John Plaisted and the Bank have represented to the City that the Partnership has been dissolved, the Bank has released Jay Morrell from all obligations under the Loan Agreement and the Bond, and the Borrower is the successor in interest to the Partnership and has assumed the obligations of the Partnership under the Loan Agreement and 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 1 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 € unnum; 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 Borrower 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 interast be made on the first day BM97836 min -3 1