2024 05-21 CC Packet - Laserfiche WebLink

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132758402v2 2 Upon an “Event of Default” as defined in the Loan Agreement and the exercise by the Lender of certain rights thereunder, this Note shall bear a default rate of interest that is 5% per annum over the interest rate otherwise applicable hereto, as provided in Section 6.7 of the Loan Agreement. This Note is subject to acceleration of maturity upon an “Event of Default” as defined in the Loan Agreement. 2. In any event, the payments hereunder shall be sufficient to pay all principal and interest due, as such principal and interest becomes due, and to pay any premium or service charge, at maturity, upon prepayment, or otherwise. 3. Principal and interest and premium, if any, due hereunder shall be payable at the principal office of the Lender, or at such other place as the Lender may designate in writing. 4. This Note is issued by the City to provide funds pursuant to a Loan Agreement dated as of the date hereof (the “Loan Agreement”) by and between the City and White Bear Montessori School, Inc., a Minnesota nonprofit corporation and 501(c)(3) organization (the “Borrower”), for financing in part, the construction of an addition to, and improvement of, certain school facilities of the Borrower, located on the campus of the Borrower at 1201 East County Road E in the City. This Note is further issued pursuant to and in full compliance with the Constitution and laws of the State of Minnesota, particularly Minnesota Statutes, Section 469.152 to 469.165, and pursuant to a resolution of the City Council of the City duly adopted on May 21, 2024 (the “Resolution”). 5. This Note is secured by a Pledge Agreement dated as of the date hereof between the City and the Lender (the “Pledge Agreement”) and is further secured by certain other assignments, security agreements, guaranties, financing statements, and other instruments evidencing or securing the Loan as may be required by the Lender. 6. The City, for itself, its successors and assigns, hereby waives demand, presentment, protest and notice of dishonor; and to the extent permitted by law, the Lender may extend interest and/or principal of or any service charge or premium due on this Note, including the Final Maturity Date, or release any part or parts of the property and interest subject to the Mortgage or to any other security document from the same, all without notice to or consent of any party liable hereon or thereon and without releasing any such party from such liability and whether or not as a result thereof the interest on the Note is no longer exempt from the federal or state income tax. In no event, however, may the Final Maturity Date of the Note be extended beyond 30 years from the date hereof. 7. This Note is subject to prepayment in immediately available funds on any date at the option of the Borrower, in whole or in part as provided in Section 5.1 of the Loan Agreement. The prepayment price is equal to the outstanding principal amount of this Note to be prepaid plus accrued interest, without penalty or premium for prepayments in an amount up to 20% of the outstanding Principal Balance as of January 1 of each year. Any prepayment by the Borrower in excess of 20% of the outstanding Principal Balance as of January 1 each year will be subject to a prepayment premium equal to the percentages set forth below applied to the prepaid amounts of the Principal Balance of this Note, or the entire outstanding Principal Balance in the event such amount is prepaid in full: