7.7. SR 04-18-2016 - Laserfiche WebLink

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2 477330v1 EL185-40 1. Amount and Purpose of Loan. Borrower agrees to take and Lender agrees to make a loan in the principal amount of One Hundred Eighty-Five Thousand Two Hundred and No/100s Dollars ($185,200.00) (the “Loan”) to be advanced in a single disbursement as hereinafter provided, the Loan to be evidenced by the Note and secured by the Security Agreement, the Personal Guaranty, the Mortgage, the Entity Guaranty and any other security document required under this Agreement. The Loan proceeds will be used only towards the cost of Borrower’s relocation to and acquisition and renovation of an existing building located the Loan Property. 2. Mortgage, Equipment and Security Interest. (a) The Entity Guarantor has provided Lender second priority mortgage in the Loan Property acquired by the Entity Guarantor with the proceeds of the Loan. (b) The Entity Guarantor has provided Lender a preliminary list of the Equipment to be relocated to the City of Elk River, Minnesota, and that shall be subject to the [first lien] Equipment Security Interest, which is attached as Exhibit A. The Security Agreement will provide Lender with a [first priority] security interest in such Equipment. 3. Title Insurance. ______________ (“Title”) is designated as the title insurer with respect to this Agreement. Title will insure Lender against loss or damage on account of mechanic’s liens upon or unmarketability of the title to the Loan Property, and will ensure that the Mortgage constitutes a second priority lien upon Borrower’s interest in the Loan Property as contemplated by this Agreement, subject only to a mortgage in favor of CorTrust Bank in the amount of $540,800.00 (the “First Lien Mortgage”). Borrower agrees to promptly and fully observe and comply with the reasonable requirements of Title and Lender with respect to the title, the Mortgage, disbursements of funds and such other reasonable requirements as Title may make. 4. Documents to be Delivered. Borrower covenants and agrees to immediately cause the compliance with the following conditions: (a) Note. Deliver to Lender the Note. (b) Security Agreement. Deliver to Lender the Security Agreement, together with evidence that a UCC-1 Financing Statement has been or will be duly filed for record. (c) Personal Guaranty. Deliver to Lender the Personal Guaranty. (d) Entity Guaranty. Deliver to Lender the Entity Guaranty. (e) Mortgage. Deliver to Lender the Mortgage, together with evidence that the Mortgage has been or will be duly filed for record.