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due and payable on June 30, 1993. ME's closing costs of the
promissory note included a loan commitment fee in the amount of
$15,000.
With respect to the construction loan, ME and SouthTrust
Bank executed an agreement, dated July 15, 1992, which provided
that the loan proceeds would be advanced in two installments.
Under the agreement, the first installment was to be advanced for
the acquisition of the shopping center and the second installment
was to be advanced upon the completion of the improvements and
the subsequent delivery of tenant leases that showed a minimum
rental income flow.
ME's promissory note was secured under a mortgage and
security agreement by the shopping center and ME's interest in
the shopping center leases. Anthony personally guaranteed the
promissory note.
On June 3, 1993, ME received a commitment from SouthTrust
Bank for permanent financing for the Miramar shopping center
project. On July 20, 1993, ME and SouthTrust Bank executed a
renewal promissory note that provided for ME to make monthly
principal and interest payments through the maturity date of
July, 20, 2003, with interest computed at a rate of 7.53 percent
for the first 5 years and thereafter adjusted in accordance with
the average yield on the 5-year Treasury note. The renewal
promissory note also required ME to pay a prepayment premium for
the amounts of any prepayments in the first 3 years of the
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