HomeMy WebLinkAbout00- Montana Electric & Gas Alliance; Economic Development Loan - Promissory Note & Loan Agreement
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LOAN AGREEMENT AND PROMISSORY NOTE
1. Loan Agreement. On this 11th day of July ,2000
("Effective Date"), the CITY OF BOZEMAN ("Lender") agrees to loan to MONTANA
ELtCT~C AND ~AS &-IANClfi'ulli.Ce! Montana nonprofit corporation, ("Debtor") the sum
'tfio ~ m,oe ~ysan m.ne n r . .
of u Y 51.X 0 ar5 ($ 29,936 . ) In furtherance of the economIc
development interests of the City which are enhanced by providing safe and reliable electric and
natural gas transmission and distribution systems to the City and its inhabitants and thus reduce
the burdens upon local government.
2. Pavment of Debt. Debtor promises to pay to Lender, at such location as is
designated by Lender and immediately upon the demand of Lender, the sum of
(II ,lih'5gfM::lBL1~~M.I~ngQ~i~fs($ ~.9.1fi' .. ), togeth~r with interest l:1ta rate of 6,53% per
annum on the principal sum ("Debt"). There shall be no pre-payment penalty for the early
payment, in full or in part, of the Debt.
3. Events of Default. Upon the happening of any of the following events
("Events of Default"), at Lender's option, following ninety (90) days' written notice to Debtor
demanding that any default be cured, and upon Debtor's failure to cure, any default within said
period, all sums under this Note, whether unpaid, due or owing, shall become immediately due
and payable, together with interest thereon, plus any other sums payable at the time of such
election pursuant to this Note. The Events of Default are as follows:
(a) Debtor's failure to make any payment within thirty (30) days of the date Lender
demands payment of this Note,
(b) the filing of a petition in bankruptcy by, or the initiation of any proceeding under
any bankruptcy or insolvency laws against, the Debtor, or
(e) the making of a general assigrunent for the benefit of creditors by Debtor.
4. Ngn-waiver. No d~layorQJIlis.sipn by.Lender in exercising any rig..lJ.t or remedy
under this Note, or any other agreement or instrument executed in connection with this Note,
shall operate as a waiver of the future exercise ofthat right or remedy or of any other rights or
remedies under this Note. All rights of Lender stated in this Note are cumulative and in addition
to all other rights provided by law, in equity, or in agreement executed in connection with this
Note.
5. Prepayment of Note. Debtor shall have the right to prepay the unpaid principal
balance of this Note at any time and without penalty. Debtor shall also have the right to make a
partial prepayment. Prepayments shall be applied to the last-due payment of principal. No
prepayment shall extend or postpone the due date or change the amount of any subsequent
payment, except those to which the prepayment is credited as set forth above.
PROMISSORY NOTE - City of Bo:teman 1 1452.001n5293
ORiGINAL
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6. Attorneys Fees and Costs. If any action or proceeding is instituted on this
Note, the prevailing party or parties shall be entitled to recover reasonable attorneys' fees and
other costs incurred in that action or proceeding, in addition to any other relief to which the party
or parties may be entitled. Diligence, demand, presentment, notice of dishonor, and protest are
waived by Debtor, and its successors and assigns.
7. Waiver. Debtor hereby waives presentment for payment, demand, notice of
nonpayment, notice of protest, and protest of this Note, and all other notices in connection with
the delivery, acceptance, perfonnance, default, dishonor, or enforcement of the payment ofthis
Note except those such notices as are specifically required by this Note, and Debtor agrees that
Debtor's liability shall be unconditional without regard to the liability of any other party and shall
not be in any manner affected by any indulgence, extension of time, renewal, waiver, or
modification granted or consented to by Lender.
._" .,'..' _._,.~ _n ..'_ ._..~__'_.._ ..____._' ~_.. -_,~.,_.'. -,_ - ..~. ... -.-'---
8. Time is ofthe Essence. Time is of the essence for every obligation under
this Note.
9. AssilZmnent of Note. Neither Party may assign this Note without the prior written
consent of the other Party.
10. Goveminl! Law. This Note shall be governed by and construed in
accordance with the laws of the State of Montana, notwithstanding any conflict of law
provisions, and venue shall be in Lewis and Clark County.
IN WIlNESS WHEREOF, Debtor has executed and delivered this Note as of the day and year
first above written.
MONTANA ELECTRIC AND GAS ALLIANCE, INC.
By --\L... - - L
Alec Hansen, President
CITY OF BOZEMAN
BY-~\ --
Name: Clark V. Johnson
Title: City Manager
PROMISSORY NOTE - City of Bozeman 2 14S2.001n5293
OR\G\NAL