DUONG, HUNG - Laserfiche WebLink

PROMISSORY NOTE Sewer Connection Loan Program for Pho Saigon City Restaurant at 4275 Rosewood Drive, #21 Pleasanton, California Date: 10/18/10 Amount: $102,708.29 FOR THE VALUE RECEIVED, the undersigned promises to pay to the order of the City of Pleasanton the sum of ONE HUNDRED TWO THOUSAND SEVEN HUNDRED EIGHT DOLLARS AND TWENTY -NINE CENTS ($102,708.29), and to pay interest on the unpaid principal amount of this Note from the date hereof, at the rate of ONE AND THREE QUARTERS percent (1.75 %) per annum, until paid. Said interest rate is 1.5% less than the rate set by the Bank of America's reference rate and shall be adjusted every six months. Both the principal and interest on this Note are payable on the first day of each month in EIGHTY -FOUR (84) monthly installments, including both principal and interest, commencing with a payment of THIRTEEN HUNDRED DOLLARS AND THREE CENTS ($1300.03) on NOVEMBER 1, 2010 And $1300.03 (except as adjusted every six months) the first day of each month for the next EIGHTY -THREE (83) months commencing on DECEMBER 1, 2010 in lawful money of the United States at the principal office of the City of Pleasanton at 123 Main Street, Pleasanton, California or such other place as shall be designated by the City of Pleasanton. The City of Pleasanton shall notify the undersigned of any change in the monthly installment. The undersigned reserves the right to prepay at any time all or any part of the principal amount of this Note without the payment of penalties or premiums. All payments on this Note shall be applied first to the interest due on the Note, and then to the principal due on the Note, and the remaining balance shall be applied to late charges, if any. IN THE EVENT the undersigned shall fail to pay the interest on or principal amount of this Note when due, and if such failure is existing on the date the next installment payment under this Note becomes due and payable, then the unpaid principal amount of this Note, together with accrued interest and late charges, shall become due and payable, at the option of the City of Pleasanton, without notice to the undersigned. Failure of the City to exercise such option shall not constitute a waiver of such default. No default shall exist by reason of nonpayment of any required installment of principal and interest so long as the amount of optional prepayments already made pursuant hereto equals or exceeds the amount of the required installments. If default exists for two (2) installment payments under this Note, the undersigned agrees that the City may disconnect water service to the site upon five (5) days written notice, by either mailing notice to the site address or posting notice at the site. If the interest on, and principal of, this Note are not paid during the calendar month which includes the due date, the undersigned shall pay to the City of Pleasanton a late charge of 4% per calendar month, or fraction thereof, on the Page 1 of 2