5.2.A. SR 09-10-2007 - Laserfiche WebLink

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PROMISSORY NOTE $325,000.00 Elk River, Minnesota Date: , Maker: The City of Elk River a municipal corporation FOR VALUE RECEIVED, the Maker promises to pay to Walter O. Malrnstrom, Sheila M. Gahr and Sharon J. Bastian (the "Lender"), at its office in ,Minnesota, or at such other place as any present or future holder of this Note may designate from time to time, the principal amount of $330,000, or so much thereof as is advanced and remains outstanding as shown in the records of the holder of this Note, plus interest thereon from the date on which the same is advanced until this Note is fully paid, computed on the basis of the actual number of days elapsed and a 360-day year. Interest: The interest rate under this Note is: A fixed rate of 5% per annum. Payments: The Maker shall make the following payments of principal and interest under this Note. Four (4) payments each due and payable as follows: Payment 1. October 1, 2008 $97,614.00 Payment 2. October 1, 2009 $93,546.75 Payment 3. October 1, 2010 $89,479.50 Payment 4. October 1, 2011 $85,412.25 Additional Interest Notwithstanding the foregoing, after the occurrence of an Event of Default and until such Event of Default is cured, the interest rate under this Note shall automatically increase to an interest rate that is 5% per annum in excess of the interest rate otherwise in effect. Other Provisions At the option of the holder of this Note, any payment under this Note may be applied first to the payment of charges, fees and expenses (other than principal and interest) under this Note, second to the payment of interest accrued through the date of payment, and third to the payments of principal under this Note in inverse order of maturity. Also, at the option of the holder of this Note, if there is any overpayment of interest under this Note, the holder of this Note may hold the excess and apply it to future interest accruing under this Note. The occurrence of any of the following events shall constitute an Event of Default under this Note: (i) any breach or default in the payment or performance of this Note; or (ii) any commencement of any proceeding under any bankruptcy, insolvency, receivership, dissolution, liquidation or similar law by or against any such Maker, endorser, guarantor, surety or other person or entity; or (iii) any such Maker, endorser, guarantor, surety or other person or entity takes any action to revoke or terminate any agreement, liability or security in favor of the holder of this Note; or Page 17