HomeMy WebLinkAboutIV.A. Promissory Note - Loan for Working Capital - 4-9-22
PROMISSORY NOTE
$25,000.00 Hastings, Minnesota
April _____, 2022
FOR VALUE RECEIVED, Spiral Food Coop, a Minnesota cooperative (the
“Undersigned”), agrees and promises to pay to the order of the Hastings Economic Development
and Redevelopment Authority, a Minnesota public body politic and corporate, its endorsees,
successors and assigns (the “Holder”), in lawful money of the United States at its principal office
at 101 Fourth Street East, Hastings, Minnesota 55033, or such other place as the Holder may from
time to time designate, the principal sum of Twenty-Five Thousand and 00/100 Dollars
($25,000.00), or so much thereof as has been advanced by the Holder to the Undersigned pursuant
to the terms of that certain Loan Agreement of even date herewith between the Undersigned and
the Holder (the “Loan Agreement”), together with interest at the rates stated herein. The Loan shall
commence on May 1, 2022. No interest shall accrue for the first twelve (12) months. Thereafter,
commencing on May 1, 2023, interest shall accrue on the outstanding principal amount of this
Note at an annual rate of Three and a Half Percent (3.50%) until this Note has been paid in full.
On May 1, 2033 the outstanding principal amount of the Loan, together with accrued and unpaid
interest, shall be payable in full. Payments under this Note shall be made in accordance with the
payment schedule attached hereto as Exhibit A, which payment schedule is subject to adjustment
on the dates that the interest rate is reset as described herein.
The principal amount of this Note, together with accrued interest, shall also be immediately
due and payable upon a sale, transfer, or other disposition of whatsoever nature, of all of the
Undersigned’s business and assets to a new entity, without prior written consent of Holder. The
principal amount hereof shall also be due and payable upon the occurrence of an Event of Default
under the Loan Agreement that is not cured within the time period for cure set forth in the Loan
Agreement.
The principal amount of this Note may be prepaid in whole or in part at any time.
All payments made with respect to this Note shall be applied first to accrued interest and
then to the principal amount of this Note.
Electronic Payment. Borrower will complete an ACH-Pay Plan for recurring payments of
this loan. ACH-Pay Plan will directly charge the bank account specified by the Borrower and
automatically deduct the payment from that bank account and the City will credit the payment to
your loan balance. If the due date falls on a weekend or a bank holiday, the payment will be
processed the next business day. A $30 penalty fee will be assessed for insufficient funds or
account closure.
Time is of the essence. No delay or omission on the part of the Holder in exercising any right
hereunder shall operate as a waiver of such right or of any other remedy under this Note. A waiver
of any one occasion shall not be construed as a bar to or waiver of any such right or remedy on a
future occasion.
Presentment for payment, protest and notice of non-payment are waived. Consent is given
to any extension or alteration of the time or terms of payment hereof, any renewal, any release of
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all or any part of the security given for the payment hereof, any acceptance of additional security
of any kind, and any releases of, or resort to any party liable for payment hereof.
Executed as of the date first above written.
SPIRAL FOOD COOP
By:
Matt Malecha
Its Owner/Officer
A - 1
EXHIBIT A
Payment Schedule - Loan Amortization Schedule