RES 17969 - Laserfiche WebLink

SECURED PROMISSORY NOTE (Kottinger Gardens—Phase 2) $2,825,360 Pleasanton, California Plus accrued interest , 2017 DRAFT FOR VALUE RECEIVED, Kottinger Gardens Phase 2 Associates, L P., a California limited partnership ("Borrower"), promises to pay to the City of Pleasanton, a municipal corporation (the "City"), in lawful money of the United States of America: (a) the principal sum of Two Million, Eight Hundred Twenty-Five Thousand, Three Hundred Sixty Dollars ($2,825,360) or so much thereof as may be advanced by City pursuant to the Loan Agreement referred to below, together with interest on the outstanding principal balance in accordance with the terms and conditions descnbed herein, and (b) the sum of[ Dollars ($ )] which is equal to the interest accrued under the Pnor Note (defined below) as of the date of this Note. Interest shall accrue on the pnncipal balance of this Note outstandmg from time to time at the rate of Three percent(3%) simple annual interest Interest shall be calculated on the basis of a year of 365 days, and charged for the actual number of days elapsed This Secured Promissory Note (this "Note")has been executed and delivered pursuant to and in accordance with an Affordable Housing Loan Agreement, dated as of the date hereof, executed by and between City and Borrower(the "Loan Agreement"), and is subject to the terms and conditions of the Loan Agreement, which is by this reference incorporated herein and made a part hereof. Capitalized terms used but not defined herein shall have the meaning ascribed to such terms in the Loan Agreement This Note supersedes in its entirety that certain Predevelopment Promissory Note in the onginal pnncipal amount of One Hundred Twenty-Five Thousand, Five Hundred Seventy-Five and 29/100 Dollars ($125,575 29), dated as of March 1, 2016 and executed by Borrower's predecessor in interest, MidPen Housing Corporation, a California nonprofit public benefit corporation ("MidPen"), for the benefit of City(the "Prior Note") Pursuant to an Assignment, Assumption and Modification Agreement executed by and among MidPen, Borrower, and the City, Borrower assumed MidPen's obligation to repay the outstanding balance of the Pnor Note and the interest accrued thereon The onginal pnncipal amount of this Note is equal to the sum of: (a) One Hundred Twenty-Five Thousand, Five Hundred Seventy-Five and 29/100 Dollars ($125,575 29) which is equal to the outstanding principal balance of the Prior Note as of the date of this Note, and (b) Two Million, Six Hundred Ninety-Nine Thousand, Seven Hundred Eighty- Four and 71/100 Dollars ($2,699,784.71)which is equal to the amount of additional funds to be disbursed to Borrower pursuant to the Loan Agreement As of the date of this Note, the Prior Note has been cancelled This Note is secured by a Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing ("Deed of Trust") dated as of the date hereof, executed by Borrower for the benefit of City and encumbering the property descnbed therein City shall be entitled to the OAK#4829-4624-9261 v5 1