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-the undersigned agree to the following terms:-
(1) Lender shall provide a line of credit to Borrower
to facilitate the development, renovation and
construction of various facilities and improvements on
The Property.
(2) The precise amount loaned shall be dictated by the
direct construction costs incurred in the production of
these facilities on The Property.
(3) Billings will be made by A.C. Schommer & Sons
(“Construction/Contractor”) directly to the Lender, and
Lender shall remit such payments directly to the
Construction/Contractor accordingly.
All sums to be loaned must be conducted as payments in
response to a direct billing by
Construction/Contractor.
(4) The total to be loaned shall be calculated from
time to time in accordance with budgets and needs for
the proposed improvements on The Property, and by
mutual counsel and consent of both Lender and Borrower.
A confirmation document showing the amount loaned to
date shall be provided by Lender and agreed to by
Borrower from time to time.
Upon final completion of all of the agreed to
improvements on The Property (projected to be Summer of
2001), a final statement shall be issued by the Lender,
showing the total sum loaned, at which time this shall
be countersigned in agreement by the Borrower.
(5) Repayment of the sum loaned shall begin precisely
Five-years from the date of this agreement, being no
later than January 25, 2004. Repayment shall be in
accordance with an amortization schedule that Lender
shall provide Borrower on or by that date of initial
repayment.
(6) Interest shall be accrued at the rate of 5.25% per
annum, and shall be payable in accordance with the
amortization schedule to be provided by Lender.
(7) Security on the loaned funds shall be in the form
of, firstly, a lien on Ronald’s salary as paid by New
Century Properties Limited, and secondly, at an
appropriate time, a mortgage or lien on The Property.
It is understood at the time of this signing however,
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Last modified: March 27, 2008