3.5 EDSR 11-21-2016 - Laserfiche WebLink

Home Browse Search

LOAN AGREEMENT THIS LOAN AGREEMENT ("Agreement") is made effective as of April 25, 2013, by and between BLUE EGG MARKET, LLC, a Minnesota limited liability company, a Minnesota limited liability company ("Borrower"), and Economic Development Authority of the City of Elk River, a public body corporate and politic of the State of Minnesota("Lender"). RECITALS A. Borrower has applied to Lender for a construction and term mortgage loan on the Loan Property(as hereinafter defined) in the principal amount of$74,500.00. B. Lender is willing to make such mortgage loan to Borrower in the principal amount of $74,500.00 (the "Loan"), subject to all of the terms and conditions of this Agreement. C. Contemporaneously with the execution hereof, Borrower is executing and delivering to Lender the following security documents: (i) A Promissory Note ("Note") effective as of the date herewith made by Borrower and payable to the order of Lender, in the original principal amount of$74,500.00. (ii) A Mortgage and Assignment of Rents and Security Agreement and Fixture Financing Statement securing the Note ("Mortgage"). The Mortgage is of even date herewith, is executed by Borrower, as mortgagor, in favor of Lender, as mortgagee, and covers property therein described situated in Sherburne County, Minnesota (the "Loan Property") as well as a security interest in certain equipment to be purchased using the proceeds of the Loan(the "Equipment"). (iii) A personal guaranty of Robin DeWitt and Bruce DeWitt (the "Guaranty"), all of the members of Borrower. NOW, THEREFORE, in consideration of the mutual covenants hereinafter contained, it is hereby agreed as follows: 1. Amount and Purpose of Loan. Borrower agrees to take and Lender agrees to make a mortgage loan in the principal amount of $74,500.00 (the "Loan") to be advanced in a single disbursement as hereinafter provided, the Loan to be evidenced by the Note and secured by the Mortgage, the Guaranty and any other security document required under this Agreement. The Loan proceeds will be used only to pay for the costs of: (i) materials, labor and soft costs of constructing the Improvements (as defined below); and (ii)the purchase of the Equipment.