3.6. SR 04-10-2006 - Laserfiche WebLink

Home Browse Search

ASSIGNMENT OF TAX REBATES THIS AGREEMENT, Made this _ day of March, 2006, by and between CPE EXCHANGE 25613, LLC, a Minnesota limited liability company (the "Guarantor"); Jon M. Jacobs ("Jacobs")(Guarantor and Jacobs shall be referred to as "Assignor", both individually and collectively); and Great Northern Bank, a Minnesota bank corporation (the "Lender"). RECITALS Jacobs and Chad Johnson (the "Borrower") have entered into a Construction and Term Loan Agreement of even date herewith with the Lender (the "Loan Agreement"), under which the Lender has agreed to make advances to the Borrower not exceeding the aggregate principal sum of Two Million Three Hundred Thousand and nolIOO Dollars ($2,300,000.00) in accordance with the terms thereof, to finance construction on land owned by Guarantor and located within the City of Elk River, Sherburne County, State of Minnesota, legally described on Exhibit "A" attached hereto (the "Project"). Advances to be made under the Loan Agreement will be evidenced by the Guarantor's Mortgages, Security Agreements and Fixture Financing Statements (the "Mortgages") and Borrower's Promissory Notes (hereafter "Notes") of even date therewith payable to the order of the Lender in the aggregate principal amount of Two Million Three Hundred Thousand and nolI 00 Dollars ($2,300,000.00). Assignor has been approved through the City of Elk River, a municipal corporation and political subdivision of the State of Minnesota and by Sherburne County, State of Minnesota for tax abatement financing, and has entered into Tax Abatement and Business Subsidy Agreements with each on or about this same date. The Lender has required, as a condition to making any Advances under the Loan Agreement, the execution hereof by the Assignor, the City of Elk River and Sherburne County. ACCORDINGL Y, in consideration of the foregoing, the Assignor does hereby grant, assign, transfer and set over unto the Lender all of its rights, title and interest in and to any and all tax rebates or abatements ("Rebates") received from the City of Elk River and Sherburne County in connection with the tax abatement financing. The Assignment shall terminate when Assignor has fully performed. The Assignor agrees' that no change in the terms thereof shall be valid without the written approval of the Lender. The Assignor agrees not to assign, sell, pledge, mortgage or otherwise transfer or encumber its interest in the Rebates so long as this Assignment is in effect.