HomeMy WebLinkAbout 2002 Promissory Note-copy
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$1,500,000
PROMISSORY NOTE
ECONOMIC AND COMMUNITY DEVELOPMENT DEPARTMENT
STATE OF OREGON
(Dated) July 2, 2002
Ashland, Oregon
FOR VALUE RECEIVED, the City of Ashland (hereinafter "Borrower"), promises to pay in lawful
money of the United States of America to the order of the STATE OF OREGON, ACTING BY AND
THROUGH ITS ECONOMIC AND COMMUNITY DEVELOPMENT DEPARTMENT, at its principal
office at 775 Summer Street NE, Suite 200, Salem, OR 97301-1280 (hereinafter "State"), the principal sum
of one million five hundred thousand dollars ($1,500,000), plus interest at the rate of two and fifteen
hundredths percent (2.150/0) per annum from the date of the first disbursement under the Loan Agreement.
Interest shall be computed on the basis of a 360-day year, consisting of twelve (12) thirty-day (30-day)
months. All principal and interest on this Note are due and payable on the Maturity Date.
Capitalized terms not otherwise defined in this Note shall have the meanings assigned to them by that
certain loan agreement dated June 21 , 2002, between the State and the Borrower (as
amended from time to time the "Loan Agreeme'nt").
This Note is payable prior to its Maturity Date as provided for in Sections 2.04 and 2.05 of the Loan
Agreement.
Each payment made by the Borrower hereunder shall be applied first to interest then due and payable on
the Loan, then to the principal of the Loan.
If any Event of Default occurs, the outstanding balance of the Note, including principal, interest and
other charges, if any, shall, at the option of the State, become immediately due and payable in accordance
with Section 6.03 of the Loan Agreement. Failure or delay of the holder of this Note to exercise any option
available to the State under the terms of this Note or the Loan Agreement shall not constitute a waiver of the
right to exercise the option in the event of any continuing or subsequent default and shall not constitute a
waiver of any subsequent breach of the same or of any other provision of this Note or the Loan Agreement.
All parties to this Note hereby waive presentment, dishonor, notice of dishonor, and protest. All parties
hereto hereby consent to, and the holder hereof is hereby expressly authorized to make, without notice, any
and all renewals, extensions, modifications or waivers of the time for or the terms of payment of any sum or
sums due hereunder, or under any documents or instruments relating to or securing this Note, or of the
performance of any covenants, conditions or agreements hereof or thereof, or the taking or release of
collateral securing this Note. The liability of all parties on this Note shall not be discharged by any action
consented to above taken by any holder of this Note.
If this Note is placed in the hands of an attorney for collection, the Borrower shall, to the fullest extent
permitted by law and on demand, pay to the State the reasonable fees and expenses of attorneys, whether at
trial or on appeal, and other reasonable expenses (including without limitation the reasonable costs of the
State's Counsel, Bond Counsel and legal staff) incurred by either of the State in the collection of principal
and interest due under this Note or any other sum due hereunder or under any of the Loan Documents in the
enforcement of performance or observation of any other duties, covenants, obligations or agreements of the
Borrower.
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This Note is made with reference to, and is to be construed in accordance with, the laws of the State of
Oregon.
This Note is subject to, and is secured pursuant to, the terms and conditions of the Loan Agreement.
IN WITNESS WHEREOF, Borrower has caused this Note to be executed this 2nd day of
July , 2002.
CITY OF ASHLAND
By:
Lee Tuneberq
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Title: Finance Director
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