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Home My WebLink About09- Intercap Revolving Loan Program Loan #2238 PROMISSORY NOTE ~~ FOR VALUE RECEIVED, the City of Bozeman, a political subdivision organized under the laws of the state of Montana (the "Borrower"), hereby promises to pay to the order of the Board of Investments of the State of Montana (the "Board") the principal amount of EIGHT HUNDRED NINETY THOUSAND AND 00/100 DOLLARS ($890,000.00) or such lesser amount as shall actually be advanced to the Borrower under the Loan Agreement (hereinafter defined) as evidenced by the Amortization Schedule attached hereto and as annually revised by March 15 for every year the loan advance is outstanding, together with interest thereon in the amount calculated as provided in the Loan Agreement, payable semiannually on February 15 and August 15 in the amounts and as provided in the Loan Agreement and as set forth hereto. The maturity date of this loan as evidenced by this Promissory Note is August 15, 2019 or sooner at the option of the Borrower pursuant to the Loan Agreement. This Promissory Note is issued pursuant to the Loan Agreement dated as of June 19, 2009, between the Board and the Borrower (the "Loan Agreement"), and issued in consideration of the loan made thereunder (the "Loan") and in evidence of the obligations of the Borrower set forth in Section 5 thereof. This Promissory Note has been assigned to the Trustee under the Indentures of the Program. Payments hereunder shall be made directly to the Trustee for the account of the Board pursuant to such assignment. Such assignment has been made as security for the payment of the Board of Investments' INTERCAP bonds. All of the terms, conditions and provisions of the Loan Agreement are, by this reference hereto, incorporated herein as a part of this Promissory Note. Pursuant to the Loan Agreement, advances shall be made to the Borrower under the Loan Agreement from time to time upon the terms and conditions set forth in the Loan Agreement. This Promissory Note is entitled to the benefits and is subject to the conditions of the Loan Agreement. The obligations of the Borrower to make the payments required hereunder shall be absolute and unconditional without any defense or right of setoff, counterclaim or recoupment by reason of any default by the Board under the Loan Agreement or under any other indebtedness or liability at any time owing to the Borrower by the Board or for any other reason. This Promissory Note is subject to optional prepayment under the terms and conditions provided in Article X of the Loan Agreement upon giving 30 days prior written notice to the Board. If an "Event of Default" occurs under Section 12.01 of the Loan Agreement, the principal of this Promissory Note maybe declared due and payable in the manner and to the extent provided in Article XII of the Loan Agreement. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the Constitution and laws of the State of Montana to be done, to exist, to happen and to be performed precedent to and in the issuance of this Note, in order to make it a valid and binding obligation ofthe Borrower according to its terms, have been done, do exist, have happened and have been performed in regular and due form, time and manner as so required; that the Borrower will, as authorized by and according to applicable provisions and limitations of law annually levy sufficient tax receipts or collect sufficient revenues, as the case maybe, with other funds available therefor, to pay the principal and interest hereon when due; and that this Note, together with all other indebtedness of the Borrower outstanding on the date of original issue hereof and on the date of its actual issuance and delivery, does not exceed any constitutional or statutory limitation of indebtedness of the Borrower. PROMISSORY NOTE - 1 IN WITNESS WHEREOF, the City of Bozeman has caused this Promissory Note to be duly executed, attested and delivered, as of this 19th day of June, 2009. CITY OF BOZEMAN ~~~ ~ By Chris Kukulski Its City Manager (SEAL) WITNESS OR ATTEST: UI By Stac Ulmen Its erk Board of Investments of the State of Montana hereby assigns the foregoing Loan Agreement and Promissory Note to U.S. Bank Trust National Association MT (formerly known as First Trust Company of Montana), as Trustee. BOARD OF INVESTMENTS OF THE STATE OF MONTANA .,, , ~'` By Louise Welsh Its Bond Program Officer PROMISSORY NOTE - 2 ' MONTANA BOARD OF INVESTMENTS ANNUAL ADJUSTABLE RATE TENDER OPTION MUNICIPAL FINANCE CONSOLIDATION ACT BONDS (INTERCAP REVOLVING PROGRAM) Municipality: City of Bozeman Final Payment: August 15, 2019 Total Commitment: $890,000.00 Total # of Payments: 20 Total Draws to Date: Draw Number: 2238 1 This Draw Down: 890,000.00 Date of this Draw: June 19, 2009 Remaining Commitment: $0.00 Date of Loan Agreement: June 19, 2009 Project: Construct & Equip Fire Station #3 Series: 2003 Payment Interest # Days Interest Principal O/S Loan Total Amount Due Rate Due Payment Payment Balance of Payment **Beginning Balance** 890,000.00 *please see comments 02/15/10 3.250% 241 19,098.42 42,415.40 847,584.60 61,513.82 08/15/10 181 38,819.67 808,764.93 02/15/11 184 39,229.26 769,535.67 08/15/11 181 40,077.54 729,458.13 02/15/12 184 40,528.59 688,929.54 08/15/12 182 41,345.78 647,583.75 02/15/13 184 41,898.97 605,684.78 08/15/13 181 42,718.23 562,966.55 02/15/14 184 43,256.32 519,710.23 08/15/14 181 44,103.84 475,606.39 02/15/15 184 44,687.59 430,918.80 08/15/15 181 45,534.84 385,383.97 02/15/16 184 46,165.75 339,218.22 08/15/16 182 46,997.54 292,220.68 02/15/17 184 47,705.18 244,515.50 08/15/17 181 48,539.00 195,976.50 02/15/18 184 49,268.92 146,707.58 08/15/18 181 50,115.31 96,592.27 02/15/19 184 50,897.19 45,695.08 08/15/19 181 45,695.08 0.00 890,000.00 COMMENTS: Interest payments shown from February 16, 2009 to February 15, 2010 are computed at 3.25 percent. After February 15, 2010 interest rates will be adjusted to reflect the adjusted interest rate applied on the outstanding principal balance. IMPORTANT: If payment is made by check, please send the enclosed amortization schedule(s) with check for proper credit. Please make sure that SpA Lockbox CM9695 is on both the check and envelope. Please mail a copy of the amortization schedule with a check made payable to: U.S. Bank Trust-SpA Lockbox CM9695 ATTN: Operations Center 1200 Energy Park Drive St. Paul, MN 55108 OR Please wire funds to: