HomeMy WebLinkAboutPromissory Note - 03/15/2018 PROMISSORY NOTE
$800,000.00
03. /s'.20/8
Date
Renton, Washington
FOR VALUE RECEIVED, Housing Authority of the City of Renton, a Washington municipal
corporation, hereinafter"Maker" promises to pay to the City of Renton, a Washington municipal
corporation, hereinafter "Holder," or order, at 1055 South Grady Way, Renton, Washington
98057, or other such place as may be designated by the Holder from time to time, the principal
sum of Eight Hundred Thousand and No/100ths Dollars ($800,000.00), with interest on the
unpaid principal at the rate of One and Seven Tenths Percent (1.7%) per annum, as follows:
1. ANNUAL INSTALLMENT PAYMENTS: Maker shall pay five (5) annual installment payments
each in the amount of One Hundred Sixty Thousand and No/100ths Dollars ($160,000.00)
plus accrued interest. The installment payments shall begin on the first anniversary date of
closing of the purchase and sale of property transferred from the City of Renton to Housing
Authority of the City of Renton, which date is March 16, 2019. Attached hereto as Exhibit A
is a payment schedule detailing the actual amount of each annual payment.
2. DUE DATE:The entire balance of this Note together with any and all interest accrued thereon
shall be due and payable in full on March 16, 2023.
3. DEFAULT INTEREST: After maturity, or failure to make any payment when due, any unpaid
principal shall accrue interest at the rate of twelve percent(12%)per annum OR the maximum
rate allowed by law, whichever is less, during such period of Maker's default under this Note.
4. ALLOCATION OF PAYMENTS: Each payment shall be credited first to any late charge due,
second to interest, and the remainder to principal.
5. PREPAYMENT: Maker may prepay all or part of the balance owed under this Note at any
time without penalty.
6. CURRENCY: All principal and interest payments shall be made in lawful money of the United
States.
7. LATE CHARGE: If Holder receives any installment payment more than twenty (20) days after
its due date, then a late payment charge of or two and one-half percent (2.5%) of the
installment payment shall be added to the scheduled payment, in addition to interest.
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614823.2-358187-0002
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8. DUE ON SALE: If this Note is secured by a Deed of Trust or any other instruments securing
repayment of this Note, the property described in such security instrument(s) may not be
sold or transferred without the Holder's consent. Upon breach of this provision, Holder may
declare all sums due under this Note immediately due and payable, unless prohibited by
applicable law.
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Maker (Initials) Holder(Initials)
9. ACCELERATION: If Maker fails to make any payment owed under this Note, or if Maker
defaults under any Deed of Trust or any other instruments securing repayment of this Note,
and such default is not cured within thirty(30) days after written notice of such default,then
Holder may, at its option, declare all outstanding sums owed on this Note to be immediately
due and payable, in addition to any other rights or remedies that Holder may have under the
Deed of Trust or other instruments securing repayment of this Note.
10.ATTORNEYS' FEES AND COSTS: Maker shall pay all costs incurred by Holder in collecting sums
due under this Note after a default, including reasonable attorneys' fees, whether or not suit
is brought. If Maker or Holder sues to enforce this Note or obtain a declaration of its rights
hereunder, the prevailing party in any such proceeding shall be entitled to recover its
reasonable attorneys' fees and costs incurred in the proceeding (including those incurred in
any bankruptcy proceeding or appeal) from the non-prevailing party.
11. WAIVER OF PRESENTMENTS: Maker waives presentment for payment, notice of dishonor,
protest and notice of protest.
12. NON-WAIVER: No failure or delay by Holder in exercising Holder's rights under this Note shall
be a waiver of such rights.
13. SEVERABILITY: If any clause or any other portion of this Note shall be determined to be void
or unenforceable for any reason, such determination shall not affect the validity or
enforceability of any other clause or portion of this Note, all of which shall remain in full force
and effect.
14. INTEGRATION: There are no verbal or other agreements which modify or affect the terms of
this Note. This Note may not be modified or amended except by written agreement signed
by Maker and Holder.
15. CONFLICTING TERMS: In the event of any conflict between the terms of this Note and the
terms of any Deed of Trust or other instruments securing payment of this Note,the terms of
this Note shall prevail.
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614823.2-358187-0002
16. EXECUTION: Each Maker executes this Note as a principal and not as a surety. If there is
more than one Maker, each such Maker shall be jointly and severally liable under this Note.
17. ORAL AGREEMENTS: ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, TO
EXTEND CREDIT, OR TO FOREBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT
ENFORCEABLE UNDER WASHINGTON LAW.
18. DEFINITIONS: The word Maker shall be construed interchangeably with the words Borrower
or Payer and the word Holder shall be construed interchangeably with the words Lender or
Payee. In this Note, singular and plural words shall be construed interchangeably as may be
appropriate in the context and circumstances to which such words apply.
19.ADDITIONAL TERMS AND CONDITIONS: (check one)
a. (X) NONE
OR
b. ( )As set forth on the attached "Exhibit B" which is incorporated by this reference.
(Note: If neither a or b is checked, then option "a" applies)
20.THIS NOTE IS SECURED BY A DEED OF TRUST OF EVEN DATE.
MAKER:
Housing Authority of the City of Renton
Arie
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Mark I •.• •er
Executive Director
DO NOT DESTROY THIS NOTE
WHEN PAID this original Note together with the Deed of Trust securing the same, must be
surrendered to the Trustee for cancellation and retention before any reconveyance can be
processed.
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614823.2-358187-0002
EXHIBIT A TO PROMISSORY NOTE
Former Renton Highlands Library Sale Payment Schedule
Date of Closing 3/16/2018
Sale Amount 885,000.00
Paid at Closing 85,000.00
Amount Financed 800,000.00
Annual Interest RE 1.7%
Beginning
Date Days Financed Balance Principal Interest Total Payment Ending Balance
3/16/2019 365 800,000.00 160,000.00 13,600.00 173,600.00 640,000.00
3/16/2020 366 640,000.00 160,000.00 10,909.81 170,909.81 480,000.00
3/16/2021 365 480,000.00 160,000.00 8,160.00 168,160.00 320,000.00
3/16/2022 365 320,000.00 160,000.00 5,440.00 165,440.00 160,000.00
3/16/2023 365 160,000.00 160,000.00 2,720.00 162,720.00 -
800,000.00 40,829.81 840,829.81
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