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HomeMy WebLinkAbout98-310 Resolution No. 98-310 RESOLUTION APPROVING LOAN UNDER THE SPECIAL BUSINESS LOAN PROGRAM FOR BUILDING IMPROVEMENTS IN ELGIN CENTER CITY ( 156 East Chicago Street) WHEREAS, the City of Elgin and certain banks and savings and loan institutions have established a special business loan program for building improvement in Center City Elgin for revitalization purposes; and, WHEREAS, Jae K. Kim and Fabiola Kim have submitted an application to Old Kent Bank for loan under the special business loan program; and, WHEREAS, Old Kent Bank has approved this loan under the special business loan program; and, WHEREAS, the loan is for the improvement of a type of business located in an area of the Center City of Elgin which meets the eligibility requirements of the special business loan program; and, WHEREAS, the loan application meets the general requirements concerning type of financing, contractor bids of the special loan program; and WHEREAS, the loan applicants meet the qualifying standards as set out in the special business loan program; and WHEREAS, it is determined that funds are available for the loan, the development plans are compatible with the Center City development plans , and the application is in adherence to the objectives and regulations of the program. NOW, THEREFORE, IT IS RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Joyce A. Parker, City Manager, and Dolonna Mecum, City Clerk, are hereby authorized to approve the special business program loan as set forth in the loan approval of Old Kent Bank attached hereto and made a part hereof by reference, and to make monthly interest payments in the amount of prime plus 1 (one) percent to a ceiling of fourteen ( 14 ) percent minus six ( 6 ) percent so long as the borrower continues to make regularly scheduled loan payments . s/ Kevin Kelly Kevin Kelly, Mayor Presented: December 16, 1998 Adopted: December 16 , 1998 Omnibus Vote: Yeas 6 Nays 0 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk RAGREE/CCBUSLN.JK DRAFT 12/8/98 CITY OF ELGIN CENTER CITY SPECIAL BUSINESS LOAN AGREEMENT This Agreement made and entered into on this 17th day of December, 1998, by and between the City of Elgin, Illinois, a municipal corporation, (hereinafter referred to as the "City" ) , and Jae K. Kim and Fabiola Kim (hereinafter referred to as the "Owner" ) , WHEREAS, the City has established a City of Elgin Center City Special Business Loan for building improvements in the Center City area in an effort to stimulate expansion, reinvestment and business retention, a copy of such Center City Special Business Loan Program for building improvements being attached hereto and made a part hereof by reference as Exhibit A (hereinafter referred to as the "Program" ) ; and WHEREAS, pursuant to the Program, the City would pay a portion of the financing costs for eligible building improvements, and WHEREAS, Owner is the owner of the property commonly known as 156 East Chicago Street, Elgin, Illinois, (hereinafter referred to as the "Subject Property" which is located in the Center City area as described in Exhibit A hereto; and WHEREAS, Owner has applied for and obtained approval for a loan agreement to finance the cost of the proposed building improvements on the subject property, a copy of the subject loan agreement being attached hereto and made a part hereof by reference as Exhibit B (hereinafter referred to as the "Subject Loan Agreement" ) ; and WHEREAS, Owner has completed an application for participation in the subject Program which identifies the proposed improvements to the Subject Property, a copy of Owner's application for participation in the Subject Program being attached hereto and made a part hereof by reference as Exhibit C. NOW, THEREFORE, for and in consideration of the mutual promises, covenants and undertakings contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 1 . That the foregoing recitals are hereby incorporated into this agreement in their entirety. 2 . That Owner' s application for participation in the Program is hereby approved. 3 . That as long as the Owner continues to make regularly scheduled loan payments on the Subject Loan Agreement the City agrees to pay on a monthly basis the difference between annual interest rate of the Subject Loan Agreement of 9 . 25% and 6% for the 60 month term of the Subject Loan Agreement. The total amount of all payments by the City shall in no event exceed $2 ,307 .08 . The Owner shall make all other principal and interest payments and all other payments -2- on the Subject Loan Agreement. It is expressly agreed and understood that the City is not and shall not be deemed to be a party to the Subject Loan Agreement or an obligor thereunder. The City' s agreement to make interest payments as provided in the paragraph may not be relied upon or enforced by any other party including but not limited to the lender in the Subject Loan Agreement or any successor or assign thereof . 4 . That the terms, requirements and conditions of the Program as set forth in Exhibit A hereto are hereby incorporated into this agreement in their entirety. The City' s obligations under this agreement including but not limited to the City' s obligations to make continued interest payments are subject to Owner' s ongoing compliance with all terms and requirements of the Program. 5 . That the Owner agrees to commence with improvements to the Subject Property as described in Exhibit C hereto on or before December 1, 1998, and to complete same on or before December 31, 1998 . In the event Owner fails to commence and complete the work in accordance with the terms of this agreement or otherwise breaches the terms of this agreement, the City may terminate this agreement upon written notice of breach and termination to Owner, and any and all financial or other obligations on the part of the City shall cease and become null and void. -3- 6 . That upon completion of the improvements, and for a period of five ( 5) years thereafter, Owner shall properly maintain the improvements in their finished form, without alteration or change thereto. 7 . That nothing herein is intended to limit, restrict or prohibit the Owner from undertaking other work in or about the Subject Property which is unrelated to the improvements provided for in this agreement. 8 . That this agreement may not be assigned without the prior written consent of the City. 9 . That the Owner hereby holds harmless and indemnifies the City from and against any and all causes of actions, suits, claims for damages and any and all other liability which may arise out of or in connection with the proposed improvements or other work at the Subject Property or with Owners or Owners agents, employees, contractors and permitted assigns negligent performance of any of the terms of this agreement. 10 . That this agreement shall not be construed to create a partnership, joint venture or employment relationship between the parties hereto. 11 . That this agreement shall be subject to and governed by the laws of the State of Illinois . The parties hereto agree that venue for any and all actions which may be brought by each and either of them to enforce the provisions of this agreement shall be in Kane County, Illinois . -4- 12 . That the terms of this agreement shall be severable. In the event that any of the terms or provisions of this agreement are deemed to be void or otherwise unenforceable for any reason, the remainder of this agreement shall remain in full force and effect. 13 . That notices regarding in this agreement shall be sent to the parties at the following addresses : To: City of Elgin 150 Dexter Court Elgin, IL 60120-5555 Attention: City Manager (with a copy to Corporation Counsel) Ll /71 Owner' s/ 9/ /2e ' rav /J ?, Ad ress. ,:�7'/p7-r l .ZL G 65/67 3 City, State, Zip Code (uv7) 6ccS - 3YS`8 Telephone Number /56 .&-, CL.c: e) Cr- Property Location Ownership Interest IN WITNESS WHEREOF, the parties hereto have entered into and executed this agreement the day and year first written above. CI ?it/ ELGIN 4 OWNER BY• e t� 4 1 Jo Parker CiManager 6! Attest: bi-4,.,-‹ ih,„„„ Dolonna Mecum, City Clerk -5- fi CITY OF ELGIN Center City Special Business Loan Program for Building Improvements PURPOSE STATEMENT : The City of Elgin and the Elgin financial institutions have estab- lished a special loan program for building improvements in center city Elgin in an effort to stimulate expansion, reinvestment and business retention . LOAN TERMS : Interest Rate : 6% paid by borrower Term of Loan : 10 year amortization Collateral : First or Second mortgage on property Maximum Loan : Up to $150 , 000 per building project Purpose of Loan : Loan proceeds must be used for building improvements ( interior & exterior) City of Elgin pays additional interest to lender monthly at P - 1% less 6% paid by borrower.. Ceiling 14% . Monthly Payment : Separate bills sent to borrower ( for principal payment plus 6% interest) and to City ( for additional interest between 6% and n _ 1%) ELIGIBILITY REQUIREMENTS : To be eligible to apply for this special loan program, the applying business must satisfy both of the following criteria : 1 Geographic : The business must be located in center city Elgin, in the areas outlined in Appendix A. 2 . Type of Business : The business must be engaged in retailing, wholesaling, distribution, professional services and certain other types of general commercial lines of business as described in Appendix B . • GENERAL REQUIREMENTS : 1 . Loan proceeds must be used strictly for commercial building improvements . This program does not include financing for working capital, equipment, furniture or other purposes not involving building improvements . 2 . Building improvements must be done by an independent contractor. Agreement with contractor must be supported by two different contractor bids . QUALIFYING STANDARDS: 1 . Applicant business and owner must have an acceptable credit history with a record of timely loan payments . 2 . Business profits and cash flow must be sufficient to support loan payments in accordance with the customary loan (with the loan to value ratio not to exceed 75% to 80% ) unless other collateral or financial strength is provided) . APPLICATION PROCESS : 1 . Eligible businesses should complete the loan program application form and submit it to the bank or savings and loan official that normally handles their account . 2 . Once the loan is conditionally approved and structured by the lending institution, the lender shall complete a loan proposal for submission to the City of Elgin for final approval . • 3 . Approval by the City of Elgin will be conditioned upon ( 1) available funds , ( 2) compatibility with Center City devel- opment plans and ( 3) adherence to the objectives and regu- lations of the program. 4 . The lending institution and business applicant may elect to proceed with a conventional market rate loan in the event that the City of Elgin denies the special loan program application. SUPPLEMENTAL LOAN AMOUNTS : If a financial institution approves subsequent increases in the • original loan amount approved for a project under this program, application can be made for an interest subsidy on the increment. Provision of the subsidy is subject to approval by the City of Elgin. The City of Elgin is under no obligation to provide benefit beyond that previously approved. ADDITIONAL TERMS AND CONDITIONS : 1 . The interest rate ceiling shall be 14% , at which point the City will be paying 8% and the borrower 6% . .2 . The City shall make monthly interest payments so long as the borrower continues to make the regular scheduled loan payments . If the borrower, fails to pay, the City will also cease paying. If the borrower resumes paying, then the City will resume paying. • • BUSLOANP .ROG/TEXT081/NEWCENTU.RY Y.r. .74 Appendix A w. PROGRAM TARGET AREA • Geographic Area/Location: Businesses and organizations located in the following districts may be eligible for loans provided that the proposed improve- ments are consistent with the Center City development goals for their respective district and the area is not targeted for re- development . Districts are defined by the Center City Master Plan . 1 . Commercial Core . 2 . Gateway - west side of State Street . 3 . State Street Corridor - west of State street north to Kimball/Lawrence . 4 . Civic Center/Cultural . 5 . Transition. • 410 6 . Hill top . PROGTARG. ET/TEXT081/NEWCENTU.RY Appendix B • STANDARD INDUSTRIAL CLASSIFICATION CODE ( 1987 Manual ) Major Industry Industry Group Group 523 Paint, glass and wallpaper stores 525 Hardware stores 53 General merchandise stores 544 Candy, nuts , confectionary 545 Dairy products 546 Retail bakeries 549 Except for poultry dealers 56 ' Apparel and accessory stores 57 Home furniture, furnishings and equipment stores 58 Eating and drinking places 591 Drug stores and proprietary stores 593 Antique stores only 594 Miscellaneous shopping goods stores 599 Retail stores , not elsewhere classified 60 Depository Institutions 61 Non-depository credit institutions 62 Security and commodity brokers , dealers , exchanges and services 63 Insurance carriers 64 Insurance agents , brokers and service 65 Real estate 67 Holding and other investment offices 7219 Laundry and garment services , not elsewhere classified 722 Photographic studios , portrait 723 Beauty shops 724 Barber shops 725 Shoe repair shops and shoe shine parlors 726 Funeral service and crematories 729 Miscellaneous personal services 73 Business services 753 Automotive repair shops 78 Motion pictures 79 Amusement and recreational services 80 Health services , except for industry group 809 81 Legal Services 824 Vocational schools 829 Schools and educational services , not elsewhere classified 841 Museums and art galleries 86 Membership organizations 87 Engineering, accounting, research, management • and related services CENTER. CTY/NCPBOAR.D • MORTGAGE (Commercial) CEC-1-5)pyil OLD KENT BANK 105 S. YORK STREET ELMHURST, IL 60126 THIS MORTGAGE is made on the 4th day of December 1$98 , between Jae K. Kim and Fabiola B. Kim, his wife as Mortgagor, and Old Kent Bank,a Michigan banking corporation of 105 South York Street, Elmhurst, Illinois, as mortgagee ("Bank"). FOR VALUE RECEIVED, Mortgagor mortgages and warrants to Bank lands located in the_ of Bartlett County of Cook State of Illinois,described as follows: LOT 461 IN WESTRIDGE OF BARTLETT UNIT SIX BEING A SUBDIVISION OF THE SOUTH 1/2 OF SECTION 31, TOWNSHIP 41 NORTH, RANGE 9 EAST OF THE THIRD PRINCIPAL MERIDIAN, IN COOK COUNTY, ILLINOIS. PIN : 06-31-408-030 ADDRESS : 1891 BURTON DRIVE BARTLETT, ILLINOIS together with all buildings, structures and other improvements now and hereafter located thereon and all easements, hereditaments, and appurtenances now or hereafter belonging thereto and the rents, income and profits therefrom and all fixtures now or hereafter attached to or used in connection therewith, and all machinery, engines, boilers, elevators, and plumbing, heating, air-conditioning, and ventilating equipment now or hereafter located thereon, which shall be deemed to be fixtures and a part of the realty, all of the foregoing being collectively referred to herein as the "premises". THIS MORTGAGE IS MADE AND GIVEN TO SECURE PAYMENT AND PERFORMANCE OF ALL INDEBTEDNESS AND OBLIGATIONS NOW AND HEREAFTER OWING BY MORTGAGOR TO BANK, including all obligations of Mortgagor under this Mortgage and all indebtedness and obligations now and hereafter owing to Bank that are evidenced by any instruments, documents and agreements that have been executed by another person or persons, including any and all extensions, renewals and modifications thereof. The indebtedness and obligations secured by this Mortgage are collectively referred in this Mortgage as the "Indebtedness." If Mortgagor is more than one person, the Indebtedness includes all indebtedness and obligations now and hereafter owing to Bank by any one or more of such persons, regardless of whether the remaining person or persons are not liable for such indebtedness and obligations or whether one or more persons other than Mortgagor are also liable for such indebtedness and obligations. The indebtedness and obligations now owing by Mortgagor to Bank include, BUT ARE NOT NECESSARILY LIMITED TO, the indebtedness and obligations evidenced by any instruments, documents and agreements listed below: Instrument/ Date Principal Interest Payment Scheduled Maker Document Amount Rate Schedule Maturity (if other or Agreement etc.) Promissory 12/04/98 $21,561.35 9.250% P&I payments 12/01/03 Jae K. Kim And Note $450.00 Fabiola B. Kim D/B/A commencing Bellas Fashions This Mortgage secures all present and future indebtedness and obligations owing to Bank by Mortgagor, regardless of whether any such indebtedness or obligation is(a) not listed above, (b) not presently intended or contemplated by Bank or Mortgagor, (c) indirect, contingent or secondary, (d) unrelated to the premises or to any financing of the premises by Bank, (e) of a kind or class that is different from any indebtedness or obligation now owing to Bank by Mortgagor, or (t) evidenced by a note or other document that does not refer to this mortgage. OKCM1 (6.30-97) 2-0424-60 3/92 Mortgage. Mortgagor further warrants, represents,and agrees as follows: 1.Payment of Indebtedness.Mortgagor agrees to pay or perform all of the Indebtedness, including all interest thereon, in accordance with the terms of the instruments, documents,or agreements evidencing the same("Instruments"). 2.Warranties.Mortgagor warrants and represents to Bank that all financial statements and other information concerning Mortgagor, the premises,and any guarantor of the Indebtedness, heretofore or hereafter furnished to Bank,are and shall be true and correct in all material respects; that the execution, delivery, and performance of this Mortgage by Mortgagor will not violate any law, rule,judgement. order. agreement or instrument binding upon Mortgagor nor require the approval of any public authority or any third party;and that this Mortgage constitutes the valid and binding obligation of Mortgagor, entbrceable in accordance with its terms. If Mortgagor is a corporation, partnership, association, trust or other entity, Mortgagor further represents and warrants to Bank that Mortgagor is duly organized and validly existing in good standing in the State of lllinois or other state of Incorporation, Registration, Formation or Location; that Mortgagor has full power and authority to carry on its business as presently conducted and to enter into and perform its obligations under this Mortgage; that the execution, delivery,and performance hereof by Mortgagor have been duly authorized by all necessary action of its board of directors, trustees or other governing body and will not violate Mortgagor's articles or certificate of incorporation, bylaws,partnership agreement, articles of association, trust agreement or other governing instrument, nor require the approval of its shareholders or members. 3. Assignment of Interest as Lessee or Purchaser. Mortgagor hereby assigns and mortgages to Bank, as additional security for the Indebtedness, all of Mortgagor's right,title, and interest in and to any and all leases,land contracts,or other agreements by which Mortgagor is leasing or purchasing any part or all of the premises, including all modifications, renewals,and extensions thereof and all of Mortgagor's rights in and to any purchase options contained in any such lease or other agreement. Mortgagor agrees to pay or cause to be paid each and every installment of rent or of principal or interest required to be paid by the lessee or buyer under any such lease, land contract, or other agreement, as and when the same shall become due and payable,whether by acceleration or otherwise. Mortgagor further agrees to pay and perform, or cause to be paid and performed, all other obligations of the lessee or buyer under any such lease, land contract or other agreement. If Mortgagor shall default in the payment of any such installment of rent or of principal or interest in the payment or performance of any other obligation under any such lease,land contract, or other agreement, then Bank shall have the right,but shall have no obligation, to pay such installment or installments, to pay or perform such other obligation on behalf of Mortgagor, and to exercise any rights of Mortgagor under any such lease, land contract or other agreement, including any purchase option. All sums expended by Bank in connection therewith shall become part of the Indebtedness, payable by Mortgagor to Bank upon demand, together with interest at the lesser of(a) five percent (5%) above the rate of interest announced from time to time by Bank as its "Index Rate" of interest, or(b) the highest rate to which Mortgagor could lawfully agree in writing("Default Rate"). On receipt by Bank from the lessor or seller under any such lease,land contract, or other agreement of any written notice of default by the lessee or buyer thereunder, bank may rely thereon and take any action to cure the default even though the existence or nature of the default is questioned or denied by Mortgagor. 4. Assignment of Leases and Contracts. Mortgagor, to the extent permitted by law,hereby assigns and mortgages to Bank, and grants to Bank a security interest in,as additional security for the Indebtedness, all of Mortgagor's right, title, and interest in and to all existing and future oral or written leases of all or any part of the premises or of any interest therein and any and all existing and future land contracts or other agreements by which the premises or any interest therein is being or shall be sold,together with all rents and profits arising from,and all other proceeds of, any such leases, land contracts, or other agreements. Without the written consent of Bank, Mortgagor will not cancel, accept a surrender of,modify,consent to an assignment of the lessee's interest under, or make any other assignment or other disposition of any such lease,land contract, or other agreement or of any interest of Mortgagor therein, and will not collect or accept any payment of rent or of principal or interest or any other amount thereunder more than one month prior to the time when the same shall become due and payable under the terms thereof. Mortgagor will pay and perform all obligations and covenants required of it by the terms of any such lease, land contract, or other agreement. If Mortgagor shall default in the payment or performance of any such obligation or covenant, then Bank shall have the right,but shall have no obligation, to pay or perform the same on behalf of Mortgagor,and all sums expended by Bank in connection therewith shall become part of the Indebtedness, payable by Mortgagor to Bank upon demand, together with interest at the Default Rate. Nothing contained in this paragraph or in Paragraph 10 hereof shall be construed to constitute consent by Bank to the sale,lease or transfer of the premises or any interest therein. 5. Taxes. Mortgagor will pay,or cause to be paid, before they become delinquent, all taxes,assessments, and other similar charges levied upon or with respect to the premises and will deliver to Bank satisfactory evidence of the payment thereof. Upon request by Bank,Mortgagor will pay to Bank each month, in addition to any payments required on the Indebtedness, a sum equal to one-twelth of the amount estimated by Bank from time to time to be sufficient to enable Bank to pay,at least thirty days before due, all taxes,assessments, and other similar charges levied upon or with respect to the premises;and upon demand by Bank, Mortgagor will pay to bank such additional sums as shall be required to make any deficiency in the amount necessary to enable Bank to pay fully any of such taxes,assessment, or other similar charges when due. Such sums may be commingled with the general funds of Bank,and no interest shall be payable to Mortgagor with respect thereto. Upon occurrence of an event of default, as hereinafter defined, Bank may apply any funds of Mortgagor then held under this paragraph against the Indebtedness, in such a manner as Bank shall determine. 6. Insurance. Mortgagor will cause all buildings. improvements, and other insurable parts of the premises to be insured against loss or damage by fire, by hazards included within extended coverage and by such other hazards as Bank from time to time may require. in such amounts and with such insurers as shall be acceptable to bank,and Mortgagor shall cause all premiums on the insurance to be paid when due. Each policy evidencing such insurance shall provide that loss shall be payable to Bank as its interest shall appear at the time of the loss,shall contain a standard mortgage clause, shall be in form and substance acceptable to Bank, and shall be delivered to Bank. Each policy shall provide that at least ten days'prior written notice of any cancellation of,or any material change in.the insurance shall be given to Bank by the insurer. Each renewal of each such policy shall be delivered to Bank at least ten days prior to the expiration date of the policy. Upon foreclosure of this Mortgage or other transfer of the premises in satisfaction of the Indebtedness, all right, title and interest of Mortgagor in and to any insurance policies then in force,including the right to any premium refund thereon, shall vest in the purchaser or grantee. In event of any loss of or damage to the premises,Mortgagor will give immediate notice thereof to Bank,and Bank shall have the right to make proof of the loss or damage, if Mortgagor does not promptly do so. Bank is authorized to settle, adjust, or compromise any claims for loss or damage under anysuch insurance policy. Mortgagor shall forthwith endorse and deliver to Bank all proceeds of any such policy. g p y ingoodand repair; will not commit or suffer anywaste 7. Maintenance and Repair. Mortgagor will maintain the premises condition p thereof; will not remove,demolish,or substantially alter any building or fixture on the premises without the prior written consent of Bank;will cause to be complied with all laws,ordinances, regulations, or requirements of any governmental authority applicable to the premises or to activities on the premises; will promptly repair, restore, replace, or rebuild any part of the premises that is damaged or destroyed by any casualty;and will promptly pay when due all charges for utilities and other services to the premises. 8. Bank's Right to Perform;Receiver. If Mortgagor shall default in the payment of the aforesaid taxes, assessments, or other similar charges or in procuring and maintaining the aforesaid insurance or in the performance of any other obligation of Mortgagor hereunder (other than any obligation of Mortgagor under paragraph 11 hereot), including its obligation to keep the premises in good condition and repair,then Bank shall have the right,but shall have no obligation, to pay such taxes,assessments,or other similar charges,or procure and-maintain such insurance, or cause other obligation to be performed and all sums expended by Bank in connection therewith shall become part of the OKCM2(5-21-96) Indebtedness, payable by Mortgagor to Bank upon demand, together with interest at the Default Rate. Bank and any persons authorized by Bank shall have the right to enter upon the premises at all reasonable times for the purpose of inspecting the premises or effecting maintenance or repairs or taking any other action pursuant to the preceding sentence. The failure of Mortgagor to pay any of such taxes, assessments or similar charges when due or to procure and maintain any such insurance shall constitute waste and shall entitle Bank to the appointment by a court of competent jurisdiction of the Bank as Mortgagee in ,C.' •..,, t f premises for the purpose of preventing the waste,which Mortgagee in possession or receiver,subject to the • w •�.1 ect the rents and income from the premises and exercise such control over the premises as the court shall order. 9. Condemnation. If all or any part of the premise are taken, whether temporarily or permanently;under 4ower of eminent domain or by condemnation, the entire proceeds of the award or other payment in relief thereof shall be paid directly to Bank. 10. Vendee. In the event of the sale or transfer, by operation of law or otherwise,of all or any part of the premises,Bank may deal with the verdee or transferee with respect to this Mortgage and the Indebtedness as fully and to the same extent as it might with Mortgagor, without in any way releasing,discharging,or affecting the liability of Mortgagor hereunder and upon the Indebtedness, and without waiving Bank's right to accelerate payment of the Indebtedness, under paragraph 12 below, by reason of the sale or transfer, or by reason of any subsequent sale or transfer. 11. Environmental Warranties and Agreements. Mortgagor warrants and represents to,and agrees with,Bank as follows: (a) The premises,and all operations and activities thereon, are and shall continue to be in compliance with all environmental laws;and the premises are not and shall not become (i) contaminated by,or the site of the disposal or release of,any hazardous substance, (ii) the source of any contamination, by any hazardous substance, of any adjacent property or of any groundwater or surface water, or (iii) the source of any air emissions in excess of any legal limit now or hereafter in effect;and,except as expressly disclosed by Mortgagor to Bank in writing, no asbestos or polychlorinated biphenyls are present or contained in or on the premises. (b) Mortgagor shall take all actions necessary to investigate, clean up, and eliminate the source of , any past present or future contamination of the premises by any hazardous substance and to prevent any additional contamination of the premises. The taking of action by Mortgagor under this subparagraph (b) shall not limit any other right or remedy available to Bank by reason of any such contamination(including Bank's right to accelerate payment of the Indebtedness). (c) For purposes of this Mortgage, (i) "environmental law" means any past, present or future federal, state, local or foreign law, ordinance, rule,regulation or order that regulates or is intended to protect public health or the environment or that establishes liability for the investigation, removal or clean-up of, damage caused by, any environmental contamination, including, without limitation, any law, ordinance, rule,regulation or order that regulates or prescribes requirements for air quality,water quality or the disposition, transportation or management of waste materials or toxic substance; (ii) "hazardous substance" means any product or waste that is now or hereafter regulated by or subject to any environmental law and any other hazardous substance, pollutant, contaminant or waste, including, without limitation, asbestos and polychlorinated biphenyls;and (iii)property shall be considered to be "contaminated" by a hazardous substance if a hazardous substance is present on or in the property in any amount or level. 12. Events of Default and Acceleration. Upon the occurrence of any of the following events of default, all or any part of the Indebtedness shall,at the option of Bank,become immediately due and payable without notice or demand: (a) If default occurs in the payment or performance of any of the Indebtedness, when and as it shall be due and payable, whether at maturity or otherwise. (b) If default occurs in the performance of any obligation to Bank under this Mortgage, under any Instrument or under any other mortgage, security agreement, loan agreement, assignment, guaranty,or other agreement that now or hereafter secures or relates to any indebtedness or obligation now or hereafter owing by Mortgagor to Bank or that secures or relates to any guaranty of any such other indebtedness or obligation("Security Documents"). The terms of which Security Documents are incorporated herein by reference. (c) If any warranty,representation or statement heretofore or hereafter made to Bank by Mortgagor or by any guarantor of all or part of the Indebtedness ("Guarantor") in this Mortgage or in any Security Document, credit application, financial statement or otherwise, shall have been false in any material respect when made or furnished. (d) If Mortgagor shall default in payment of the principal of or interest on any indebtedness for borrowed money now or hereafter owed to any person other than Bank. (e) If Mortgagor or any of Mortgagor's partners (if Mortgagor is a partnership) or any Guarantor shall die,dissolve,become insolvent or make an assignment for the benefit of creditors. (t) If Mortgagor, without the written consent of Bank, shall sell,convey,or transfer the premises or any interest therein or any rents or profits therefrom or if any mortgage, lien,or other encumbrance or any writ of attachment, garnishment, execution, or other legal process shall be issued against or placed upon the premises or any interest therein or any rents or profits therefrom, except in favor of Bank, or if any part of the premises or any interest therein shall be transferred by operation of law,or if the mortgagor is a land trustee, the beneficial interest, or any portion thereof, in the land trust, is assigned for any purpose or if any lien or encumbrance, or any writ of attachment. garnishment, execution or other legal process shall be issued or placed against said beneficial interest or any portion thereof. (g) If all or any material part of the premises shall be damaged or destroyed by fire or other casualty, regardless of insurance coverage therefor,or shall be taken by condemnation or power of eminent domain. (h)If any law or government regulation shall hereafter impose any tax or assessment upon Mortgages on debts secured by Mortgages. (i) If any guaranty that now or hereafter secures payment or performance of all or any part of the Indebtedness shall be terminated or limited, for any reason, without the written consent or agreement of Bank. (j) If at any time Bank in good faith believes that the prospect of payment or performance of any part or all of the Indebtedness is impaired. (k) If any lease, land contract, or other agreement by which Mortgagor is leasing or purchasing any interest in the premises shall be declared by the lessor or seller thereunder to be forfeited or terminated or if any suit or other action shall be commenced to foreclose any such land contract or to recover possession of all or any part of the premises by reason of any default or alleged default under any such lease, land contract,or agreement. If a voluntary or involuntary case in bankruptcy or receivership shall be Commenced by or against Mortgagor or any of Mortgagor's partners (if Mortgagor is a partnership) or any Guarantor, then the entire Indebtedness shall automatically become immediately due and payable,without notice or demand. All or any part of the Indebtedness also may become, or may be declared to be, immediately due and payable under the terms and conditions contained in any Security Document, Instrument or other agreement heretofore or hereafter entered into between Bank and Mortgagor. 13. Remedies. Bank shall have all rights and remedies provided for in this Mortgage or otherwise permitted by law. In addition, if the Indebtedness shall not be paid upon maturity,Bank shall have the right,and is hereby authorized: (a) To the extent permitted by law,to collect and receive all rents,profits,and other amounts that are due or shall hereafter become due under the terms of any leases,land contracts, or other agreements, now or hereafter in effect,by which the premises or any interest therein are then being sold or leased, and to exercise any other right or remedy of Mortgagor under any such lease, land contract, or other agreement, provided, that Bank shall have no obligation to make any demand or inquiry as to the nature or sufficiency of any payment received or to present or file any claim or take any other action to collect or enforce the payment of any amounts to which Bank may become entitled hereunder, nor shall Bank be liable for any of Mortgagor's obligation under any such lease, land contract, or other OKCM3(5-21-96) agreement. • (b)To obtain or update abstracts of title, title searches, title insurance,commitments for title insurance and surveys with respect to the premises,and Mortgagor shall reimburse Bank for all costs thereof, together with interest at the Default Rate. (c)To conduct or obtain an environmental investigation or audit of the premises,and Mortgagor shall reimburse Bank for all costs thereof, together with interest at the Default Rate. (d)To foreclose this Mortgage by action pursuant to applicable law. (e)To sell,release,and convey the premises at public sale,and to execute and deliver to the purchasers at such sale good and sufficient deeds of conveyance, rendering any surplus funds,after payment of the Indebtedness in full and the expenses of such sale, including attorney fees as provided by law,to Mortgagor,all in accordance with Illinois Mortgage Foreclosure Law, Chapter 110,Illinois Revised Statutes,Section 15-1101, et. sec., as the same may be amended from time to time,and any similar statutory provisions which may hereafter be enacted in addition thereto or in substitution therefor. In the event of public sale, the premises,at the option of the Bank,may be sold in one parcel. (f)To exercise any and all rights and options of Mortgagor under any lease, land contract,or other agreement by which Mortgagor is then leasing or purchasing any part or all of the premises, including any option to purchase the premises or to renew or extend the term of any such lease, land contract,or other agreement,but Bank shall have no obligation to exercise any such right or option. All rights and remedies of Bank under this Mortgage,whether or not exercisable only on default, shall be cumulative and may be exercised from time to time,and no delay by Bank in the exercise of any right or remedy shall operate as a waiver thereof,and no single or partial exercise of any right or remedy shall preclude other or further exercise thereof or the exercise of any other right or remedy,except to the extent otherwise provided by law. In this Mortgage, "maturity" means such time as the Indebtedness shall be or shall become due and payable,whether by the terms of the Instruments or pursuant to paragraph 12 hereof or otherwise. 14.Security Interest In Fixtures.Mortgagor grants to Bank a security interest in all fixtures now or hereafter located on the premises. If the Indebtedness is not paid at maturity,Bank,at its option,may enforce this security interest in fixtures under the Illinois Uniform Commercial Code or other applicable law or may include the fixtures in any foreclosure of this Mortgage under paragraph 13 hereof. Any requirement of reasonable notice with respect to any sale or other disposition of fixtures shall be met if Bank sends the notice at least five (5)days prior to the date of sale or other disposition. 15. Indemnification. Mortgagor shall indemnify and hold the Bank harmless with respect to any and all claims, demands, causes of action, liabilities, damages, losses,judgements and expenses(including attorney fees) that shall be asserted or incurred by Bank by reason of(a) any representation or warranty by Mortgagor in this Mortgage being inaccurate in any respect, (b) any failure of Mortgagor to perform any of Mortgagor's obligations under this Mortgage, or(c) any past, present or future condition or use of the premises (whether known or unknown), other than an excluded condition or use,including,but limited to,liabilities arising under any "environmental law."as defined in paragraph 11 of this Mortgage. An "excluded condition or use"is one that (i) does not exist or occur,to any extent, at any time betbre Mortgagor has permanently given up possession and control of the premises by reason of a foreclosure of this Mortgage or a conveyance of the premises to Bank in lieu of foreclosure and (ii) was not caused or permitted to exist,in whole or part, by any act or omission of Mortgagor. Indemnification by Mortgagor under this paragraph shall not limit any other right or remedy (including Bank's right to accelerate payment of the Indebtedness) that is available to Bank by reason of the circumstances in respect of which indemnity is made. Mortgagor's obligation under this paragraph shall survive foreclosure of this Mortgage and any conveyance of the premises in lieu of foreclosure. 16. Waivers. (a) Mortgagor and any other person hereafter obtaining any mortgage or lien upon, or any other interest in,the premises waivers,with respect to any foreclosure of this Mortgage, (i) any right to marshaling of the premises and any right to require a minimum bid or "upset" price,and(ii)the benefit of any stay, extension,exemption or moratorium law,now existing or hereafter enacted. (b) Bank may at any time release all or any part of the premises from the lien of this Mortgage or release the personal liability of airy person for the Indebtedness, with or without consideration and without giving notice to, or obtaining the consent of, the holder of any mortgage or lien upon, or other interest in, the premises. Any such release shall not impair or effect the validity or priority of this Mortgage, regardless of the effect of such release upon any such mortgage, lien or other interest or the holder thereof. Nothing in this subparagraph constitutes consent by Bank to the placing of a mortgage,lien or other encumbrance on the premises. (c)Mortgagor (i) waives notice of any advances or other extensions of credit included in the Indebtedness, (ii) waives any right to require Bank to sue upon or otherwise enforce payment of the Indebtedness or to enforce any security therefor before exercising its rights and remedies under this Mortgage, and (iii) agrees that the validity and enforceability of this Mortgage shall not be impaired or affected by any failure of Bank to obtain or perfect, or secure priority of,any other security at any time given,or agreed to be given,by any person for the indebtedness. (d) Bank is authorized from time to time and without notice to or consent of Mortgagor and with or without consideration, to give and make such extensions, renewals,modifications, waivers,settlements, and compromises, on such terms and conditions as Bank may see fit, with regard to any of the Indebtedness as to which Mortgagor is not the obligor or with regard to any security for the Indebtedness that is not owned by Mortgagor. Any such action shall not impair or affect the validity or enforceability of this Mortgage. (e)Mortgage hereby irrevocably releases,waives any and all applicable homestead right or exemption. 17. Expenses. Mortgagor shall pay to Bank on demand any and all expenses,including attorney's fees,paralegal fees,and legal expenses, filing fees, title insurance, real estate taxes,photocopies, recording fees, publication costs, witness fees and the like, paid or incurred by Bank in collecting or attempting to collect the Indebtedness or in protecting and enforcing the rights of and obligations to Bank under any provisions of this Mortgage, including,without limitation, taking any action in any bankruptcy,or insolvency,or reorganization proceedings concerning Mortgagor or foreclosing this Mortgage by advertisement or by action. All such expenses shall be part of the Indebtedness and shall bear interest, from the date paid or incurred by Bank,at the Default Rate. 18. Application of Proceeds. In the event of the payment to Bank, pursuant to the provisions hereof, of any rents or profits or any proceeds of insurance or proceeds of any condemnation or eminent domain award or proceeds from any of the premises at foreclosure, Bank shall have the right to apply such rents or profits or proceeds, in such amounts and proportions as Bank shall in its sole discretion determine, to the full or partial satisfaction of any or all of the Indebtedness and obligations of Mortgagor secured hereby, including any contingent or secondary obligations, whether or not the same shall then be due and payable by the primary obligor. Mortgagor shall be obligated to the Bank for any deficiency,if the rents, profits, proceeds of insurance. condemnation or sale, are insufficient to satisfy the indebtedness in full. 19. Other. All notices to Mortgagor and to Bank shall be deemed to be duly given if and when mailed, with postage prepaid, to the respective addresses of Mortgagor and Bank appearing on the front page hereof, or if and when delivered personally. The provisions of fofMortgagor Bank and their respective successors,assigns,heirs and this Mortgage shall be binding upon and insure to the benefit andpg ., personal representatives. Any provisions of this Mortgage prohibited or unenforceability by any applicable law shall be neffective only the extent and for the duration of such prohibition or unenforceable without invalidating the remaining provisions hereof. If Mortgagor is more than one person, their obligations under this Mortgage are joint and several,and the term "Mortgagor"refers to each of them and all of them. OKCM4(5-21-96) IN WITNESS WHEREOF, Mortgagor and Bank have executed this Mortgage as of the date first written above. Accepted: Nonindividual Obligor: OLD KENT BANK By: Jae K. Kim By: B : (( npy, Dann Zimmer Its: Vice President y Fabiola B. Kim Taxpayer Identification No. : 333-72-5096 STATE OF ILLINOIS : SS COUNTY OF The foregoing Mortgage was acknowledged before me day of by Notary Public, County, Illinois. STATE OF ILLINOIS ) My commission expires: : SS COUNTY OF The foregoing Mortgage was acknowledged before me this day of by , the , of , a , on its behalf. (type of entity) Notary Public, County, Illinois. My commission expires: This instrument prepared by : MORTGAGE OLD KENT BANK After recording document, return to: LOAN NO. OLD KENT BANK Commercial Loan Administration 105 South York Street Elmhurst, Illinois 60126 Attn: Old Kent Bank flvrhAR,c.,,.ORI AFFIDAVIT OF SOLE OWNERSHIP C©DPV TO Old Kent Bank DATE December 4, 1998 THE UNDERSIGNED AFFIANT SWEARS AND AFFIRMS THAT xIS THE SOLE BR OF Bellas Fashions ey owners LOCATED AT 156 E. Chicago, Elgin, IL THAT NO OTHER PERSON, FIRM, ASSOCIATION, PARTNERSHIP OR CORPORATION, IS ENTITLED TO THE FUNDS OF SAID COMPANY; THAT HE HAS THE AUTHORITY TO ENDORSE AND CASH ALL NEGOTIABLE INSTRUMENTS PAYABLE TO OR ENDORSED TO THE ORDER OF SAID COMPANY; THAT HE WILL NOTIFY THE ABOVE MENTIONED BANK, AT ANY TIME THAT SUCH OWNERSHIP SHALL CEASE OR BE CHANGED IN ANY MANNER WHATSOEVER; AND FURTHER AFFIANT SAYS NOT. deb Jae ;K: Kim Fabiola B. Kim STATE OF COUNTY OF ss. SUBSCRIBED AND SWORN TO BEFORE ME, A NOTARY PUBLIC IN AND FOR THE ABOVE COUNTY AND STATE THIS DAY OF , 19 NOTARY PUBLIC MY COMMISSION EXPIRES Oid Kent Promissory Note count( 105 South Ban k Street (Installment Payments) Elmhurst,Illinois 60126 • Obligor No.__ December 04, 1998 Obligation No. FOR VALUE RECEIVED, the undersigned ' • •�D ffG •=* to the order of OLD KENT BANK, a Michigan banking corporation(Bank'),the principal amount of gltiteathf• d�jve Hundred Sixty One and 35/100 _ Dollars($ _)and interest(co puled on the basis of a 360-day year for the actual number of days elapsed)on the unpaid principal at a rate per annum of(check applicable box): 6tl_9.250_%until Maturity and—14-..25Il %after Maturity. %above the Index Rate(as defined below)from time to time in effect until Maturity,and _%above the Index Rate from time to time in effect after Maturity. The interest rate on this Note shall be adjusted ---------- to the specified percentage above the Index Rate in effect on the date of adjustment. The principal and interest on this Note shall be paid as follows(check applicable box): ff I Principal and interest shall be paid in installments commencing_January__01__.____.—,—1299and on the_,et_. -_-__day of each.month___ thereafter until .December 01,_ 2003 _,at which time the remaining balance of principal and interest shall be paid in full. Each installment shall be paid in an amount equal to the greater of$450 -00___ --or the amount of unpaid interest accrued to the date of payment of the installment. 1.1 Principal and interest shall be paid in installments of$_ .._ _--____ each of principal,plus unpaid interest accrued to the date of payment,commencing -- ,_ and continuing on the—_____ day of each .thereafter until-.--------_________ _ ,at which time the entire remaining unpaid balance of principal and interest shall be paid in full. LJ Principal shall be paid in installments of$_ each,commencing_._ and on the_ _._day of each_—_—.___ ---- ------- — ------- thereafter until___._____—_—_.__-__._ ,at which time the remaining unpaid principal balance shall be paid in full. Accrued interest shall be paid on--.-.------ ---- -- ----,and on the —.--day of each-- - ___—____ .thereafter until the principal shall be paid in full. LATE CHARGE: If any installment of principal or interest is not paid within ten days after it is due,Obligor shall forthwith pay to Bank a . late charge in a amount equal to the greater of$50.00 or one-tenth(1/10)of one percent(1%)of the unpaid principal balance as of the date the late charge is assessed. This is in addition to Bank's other rights and remedies for default in payment of an installment of principal or interest when due. INDEX RATE: As used in this Note;Index Rate'means(check applicable box): IJ The rate of interest announced from time to time by Bank as its"prime"interest rate. • CI Other: _. -- ---- -- — --The rate announced by Bank as its"prime'interest rate at any given time may not necessarily be the lowest rate of interest available to comm- ercial customers of Bank at that time. EXPENSES AND LOAN PROCESSING FEE:Obligor shall reimburse Bank for all out-of-pocket expenses heretofore or hereafter incurrec by Bank in connection with making the loan evidenced by this Note and any renewals, extensions or modifications of the loan and it connection with taking any security for the loan,including,without limitation,filing and recording fees,attorneys'fees and expenses,and cost; of credit reports,surveys,appraisals,title work and mortgagee's title insurance. Each out-of-pocket expense(if not reimbursed to Bank on of before the date of the Note)shall be reimbursed to Bank at the time of the first required interest payment under this Note after the expense is incurred. There is also a loan processing fee in respect of this loan in the amount of$-n/a . The loar processing fee(check applicable box): L_I has been paid to Bank on or before the date of this Note. LI shall be paid by Obligor to Bank on the date accrued interest in first required to be paid under this Note. PAYMENTS FROM DEPOSIT ACCOUNT: Obligor authorizes Bank to debit deposit account No. __ _. ,which is maintained with Bank by Obligor,for payments due to Bank under this Note. THE ADDITIONAL PROVISIONS PRINTED ON THE REVERSE SIDE OF THIS NOTE,AND THE PROVISIONS OF ANY RIDER TO THIS NOTE THAT IS SIGNED BY BANK AND OBLIGOR,ARE PART OF THIS NOTE AND ARE INCORPORATED IN THIS NOTE BY REFERENCE. Accepted: Nonindividual OblAg r: • OLD KENT SANK By: 1 Jae.- "'Kim YY By: Hellas F hione Darn Zimmer / • Its: Vice President By: Fabiola B. K m d/b/a Hellas Fashions Debtor Address: 156 E. Chicago Elgin, IL 60120 PC Approving Officer m X 267 R Contact Officer Pa 267 2-0018-80 R 5/92 mmnIeini • ADDITIONAL PROVISIONS OF PROMISSORY NOTE 1.Prepayments.Obligor may prepay all or part of the principal 5.Maximum Interest Rate.Notwithstanding any other provision of this Note at any time,unless prepayment is prohibited,limited or of this Note,Bank shall never be entitled to charge,take or receive conditioned in any Rider to this Note or in any other agreement as interest on this Note any amount in excess of.simple interest signed by Obligor.Any partial prepayment will be applied to the calculated at the lesser of(a)a rate of thirty-five percent(35%)per installment or installments last falling due under this Note, and a year or(b)the highest rate to which Obligor may lawfully agree in • partial prepayment shall not affect the amount or time of payment writing("Maximum Rate").If Bank ever receives interest in excess of of succeeding required installments. the Maximum Rate, the excess shall be considered a partial prepayment of the principal of this Note or,if the principal has been • 2. Security.This Note and all Obligations of Obligor hereunder paid in full,shall be refunded to Obligor. are secured by any and all security agreements, guaranties, mortgages,assignments and all other agreements and instruments 6. Setoff. Bank shall have the right at any time to set off any heretofore or hereafter given by any Obligor or any third party to indebtedness that Bank then owes to any Obligor(including any Bank("Security Documents"),including,but not limited to,Security deposit account)against any indebtedness evidenced by this Note • Documents given in connection with any prior promissory notes that is then due and payable. given to Bank by any Obligor. As additional security for the payment of Obligor's obligations under this Note,Obligor grant(s) 7. Remedies.Bank shall have all rights and remedies provided to Bank a security interest in all tangible and intangible property of by law and by agreement of any Obligor. Any requirement of Obligor now or hereafter in the possession of Bank, including, reasonable notice with respect to any sale or other disposition of without limitation,all deposit accounts. collateral shall be met if Bank sends the notice at least five(5)days before the date of sale or other disposition.Obligor agrees to pay 3. Default. Each of the following shall be an event of default any and all expenses, including reasonable attorneys' fees and under this Note: (a) if default occurs in the payment of any legal expenses, paid or incurred by Bank in protecting and installment of principal or interest hereunder or of any late charge, enforcing the rights of and obligations to Bank under any out-of-pocket expense,or loan processing fee at any time owing to provisions of this Note or any Security Document. Bank under this Note or in the payment of any other indebtedness or obligation now or hereafter owing by any Obligor to Bank, as B.Environmental Compliance.Obligor represents and warrants and when the same shall be or become due and payable; (b) if to, and agrees with, Bank that: (a) none of Obligor's real or default occurs in the performance of any other obligation to Bank personal property is,and obligor will not permit it to become,con- under this Note or any Security Document or any loan agreement taminated by any substance that is now or hereafter regulated by or or other agreement heretofore or hereafter entered into between subject to any present or future law or regulation that establishes any Obligor and Bank or if there occurs any other event of default liability for the removal or clean-up of,or damage caused by,any under any Security Document or any such loan agreement or other environmental contamination; (b) Obligor's operations, activities, document; (c) if any warranty or representation heretofore or and real and personal properties are,and Obligor shall cause them • hereafter made to Bank by any Obligor or any guarantor of all or to continue to be,in compliance with each such law and regulation; part of the indebtedness evidenced by this Note("Guarantor"), in (c) if the indebtedness evidenced by this Note is not paid at this Note,in any Security Document or in any financial statement, maturity, then at any time thereafter Bank may, but shall not be loan application or other document given to Bank,shall have been obligated to, conduct or obtain an environmental investigation or false in any material respect;(d)if any Obligor or any Guarantor or audit of any or all of Obligor's properties, and Obligor shall • any of Obligor's or Guarantor's partners (if any Obligor or reimburse Bank for all costs and expenses incurred by Bank in Guarantor is a partnership)shall die,dissolve,become insolvent,or connection with any such investigation or audit; and (d) Obligor make an assignment for the benefit of creditors;(e)if any levy,writ shall indemnify and,at Bank's option,defend Bank with respect to of attachment,garnishment,execution or similar process shall be all claims, damages, losses, liabilities and expenses (including issued against or placed upon any property of any Obligor or any attorneys'fees)asserted against or incurred by Bank by reason of Guarantor; (f) if any guaranty that now or hereafter secures any failure to comply with, or any inaccuracy in, any of the payment of all or any part of the indebtedness evidenced by this agreements, representations and warranties contained in this Note shall be terminated or limited for for any reason without the paragraph. written consent or agreement of Bank;or(g)if at any time Bank for 9 Waivers. No delay by Bank in the exercise of any right or rem- any reason shall in good faith believe that the prospect of payment edy shall operate as a waiver thereof.No single or partial exercise or performance of this Note or any other indebtedness or by Bank of any right or remedy shall preclude any other or future obligation of any Obligor to Bank is impaired.Upon the occurrence exercise thereof or the exercise of any other right or remedy. No • of any event of default, all or any part of the indebtedness waiver by Bank of any default or of any provision hereof shall be evidenced hereby and all or any part of all other indebtedness and effective unless in writing and signed by Bank. No waiver of any obligations then owing by any Obligor to Bank shall,at the option right or remedy on one occasion shall be a waiver of that right or of Bank, become immediately due and payable without notice or remedy on any future occasion. demand. If a voluntary or involuntary case in bankruptcy, Obligor waives demand for payment, presentment, notice of receivership or insolvency shall at any time be begun by or against any Obligor or any Guarantor,or if any attachment,garnishment, dishonor and protest of this Note and consents to any extension or execution,levy or similar process shall at any time be placed upon postponement of time of its payment,to any substitution,exchange any deposit account at any time maintained with Bank by any or release of all or any part of any security given to secure this Obligor or any Guarantor, then all such indebtedness and Note, to the addition of any party hereto, and to the release, obligations shall automatically become immediately due and discharge, waiver, modification, or suspension of any rights and payable.All or any part of the indebtedness evidenced hereby also remedies against any person who may be liable for the may become, or may be declared to be, immediately due and indebtedness evidenced by this Note. payable under the terms and conditions contained in any loan agreement, Security Document or other agreement heretofore or 10.General.If Obligor is more than one person,firm or corpora- hereafter entered into between any Obligor and Bank. Lion,(a)each of them is primarily liable on this Note,(b)receipt of value by any one of them constitutes receipt of value by both or all 4.Place and Application of Payment.Each payment upon this of them, (c)their liability on this Note is joint and several,and(d) Note shall be made at any of Bank's offices or such other place as the term 'Obligor means each of them and all of them. In this the holder hereof may direct in writing.Any payment upon this Note Note,'Maturity' means such time as the entire remaining unpaid • shall be applied first to any accrued and unpaid interest,then to the principal balance shall be or shall become due and payable for any unpaid principal balance,then to any expenses or loan processing reason,including acceleration under paragraph 3 hereof. fee then due and payable to Bank and then to any unpaid late charges,except that after Maturity of this Note,Bank may apply any 11.Applicable Law and Jurisdiction.This Note shall be gov- payment or collection to any such amounts owing under this Note erned by and interpreted according to the laws of the state of in such manner as Bank shall determine in its sole discretion.If any Illinois,without giving effect to principles of conflict of laws.Obligor Obligor at any time owes Bank any indebtedness or obligation in irrevocably agrees and consents that any action against Obligor for addition to the indebtedness evidenced by this Note, and if any collection or enforcement of this Note may be brought in any state indebtedness owed by Obligor to Bank is then in default,Obligor or federal court that has subject matter jurisdiction and is located in, shall not have,and hereby waives,any right to direct or designate or whose district includes,any county in the state of Illinois in which the particular indebtedness or obligation upon which any payment Bank has an office and that any such court shall have personal made by,or collected from,Obligor or from any Guarantor or other jurisdiction over Obligor for purposes of the action. security shall be applied. The manner of application of any such payment,as between or among such indebtedness and obligation, shall be determined by Bank in its sole discretion. 2-0016 1112/91 CMMLNTB(6-30-97) • APPLICATION FOR CITY OF' ELGIN CENTER CITY SPECIAL BUSINESS LOAN PROGRAM Date : /2 - /D -98 . ;,I �E i .3S �.I,SE-� s Loan Amount R..qu..st..dp: $ T Total Pro Cost : S Company Name :._ .� LI�� 1'v�,Sg7 ci,A c Address : 1 C'4LJCAQ GUI , _60/fit` Phone : G9 fri) 3L..5 i Owner ' s Name( s ) : JAE kIt Wr1 kit-1 Agr, ' rA Bic LA I<�r-� Type of Business : C�LoTN1/�lC� STORE- Purpose of Loan : INAILi) . 3 iet-PROVoTEAT • Does this loan represe9,t an addition to a loan previously approved for this project? V YES NO If yes , please indicate original amount, date approved and total loan amount with proposed increment. Original loan approved: $ oli j561 Date Approved: - FS Total loan with proposed increment: $ • BREAKDOWN OF PROJECT AMOUNT CONTRACTOR DESCRIPTION OF WORK 1 . $ /7.117 ��`(u.�/t'S _ TuckPc57A- i 2 $ k,111110o 1A)/JNI D6,3 CUTLET W.I1-11)eW �F C -�i-.Te= 3 . • $ 4 . .$ BUSLOANA. PPL/TEXT081/NEWCENTU. RY 410 OTHER CONTRACTOR BIDS OBTAINED • DESCRIPTION OF PROPERTY: !,1(), ){ .22. •1H� SST G LcT 77 ( Size & Description) - . • �; � �6 d p C Fr h�X 1`TtiH� APPRAISED VALUE : In, ODO .°O OWNER IN TITLE : JAE- kAl.N C—f AIAD PTCCA k/r1 _ EXISTING MORTGAGE , l ON PROPERTY : J 11joN NATiof.SAL J Ak k C gt ll. • OTHER INFORMATION REQUIRED INITIALLY: 1 . Business Year end Financial Statements - last two years . 2 . Business Interim Financial Statement - current year-to-date . 3 . Personal Financial Statement - current . 4 . Copy of Contractor Estimates . 5 . Corporate and/or Personal Tax Returns may be required. 6 . Appraisal of property may be required. The undersigned applicant hereby certifies that the loan funds obtained shall be used for the purposes outlined in this application. DATE /0 " 6 - ��% �� `.�' !1 `�/' / � pplicant usin ss BY /� o> Owner Please deliver this completed application to the bank or savings and loan official of your choice. They will process your credit applica- tion and submit a loan proposal to the City of Elgin for final approval . • J I • '711'- j it I i.c--. 1tL .. . I •.. I 1 - �_ 1•I_ .� il _jL_ :ILJ / 1, g' ` ij °I R= • , �t l l= . - 1 I I, I -J . V IIF. 4 {1 it II / I i I � irj : g ...: .....• . '7..= -,..-7.z. _- „ If • , 11-11 . z I , \ ..Y,;./e.**Mlft's 'ii '1 . I.,1 ...--7-.. -77—. 4_„...7 r.............i 1.._..„. 1 ! P - w • � NORTH'I _ fttH1L / h � T. t ' .. . ". 1 G 1 1, -'�c„ I` 1 1 DUNDEE111 1`1 �.i^rs�l1 I ,, ' - KIMB.41 CORRIDOR - I \ ��STREET ;-JI��J i�r-'\� - ;11 l I I I _rl - It, l CORRIDO' L_�..I H: I I \ '�; - ;' — s . I , - • 1, II! y \ : 't ,717\ ' \ \ fl':_ :< — Y c �; � , ',♦ + r '4 'CIVICI; U ' � DISTRICT _.., LC �'T• �_y't � � 4DULISTTUR RAcr•\� I -� 11:a i, \ L IV ) -s!., , n •N 11 1 t-P '1ZQ i 1 I ;- -:•Fr÷.7--_. i,' I i �`• , '.. L I . I r'al� ,c-.3. := ': EAST SIDE --\ ��6\\\�. 1' I \I II I•lI ...0 I�� ( RESIDENTIAL 7 E1 .� ';'STATEa�' •:•: c--,. - �.. \, _, .—, 1 { a HILLTOP c��� STREET o .. COtYI:LIERCIAL 1' DISTRICT, =4l. i 1 . �� ° GATEWAY+ �^COREL--\ I „ I, I(.-J; --.; QQW ''DISTRICT. • DISTRICT r "`=_ :_ WEST SIDE a\iVV -'. e�4 '_ I , I- _� RESIDENTL41 �° ' .• \ ; II i` :,4, 1 j IA\, \ 1 . \\X•v4.11....,':.\ \c \ti e..d . ...-- '---.5n--.-,....,,,,,-;77..fil; 1 L '''.,\.... . ",\ `� --tic ,,�\, ( 1I I l f • i f I .: •".2 •\ DIST31CT�A" o.� \ L- I \`` ,�_� I iC � \� -——— Study Area \ \\- 11i.' 1-Center City Districts 11 i,l 1 \• '\ ,�, S,c \` i;lre 1. Censer City Districts 4 oF � �' ~ Agenda Item No. L City of Elgin I \ ^�eo T[I) November 20 , 1998 TO: Mayor and Members of the City Council FROM: Joyce A. Parker, City Manager SUBJECT: Application for Participation in Special Business Loan Program for Building Improvements at 156 East Chicago Street PURPOSE The purpose of this memorandum is to provide information to the City Council in order to consider subsidizing interest on a loan for building improvements made to Jae K. Kim and Fabiola Kim by Old Kent Bank. BACKGROUND As a partner with private financial institutions in the Special Business Loan Program for Building Improvements, the City of Elgin has subsidized interest on loans made to target area businesses . At present, the City is involved in seven such loans made for projects undertaken by Center City busi- nesses . In order to participate in the program, the applicant must seek financing through and receive approval from a participat- ing lending institution. The applicant then files an applica- tion for the interest subsidy with the City through the lender. If approved, the City will subsidize the interest rate between 6% and Prime plus 1% (14% ceiling) for ten years . A bill for the interest payment is sent to the City from the lending institution. The borrower is responsible for the first 6% interest . Jae and Fabiola Kim are requesting participation in the Facade Improvement Program for work done at 156 East Chicago Street . The applicant intends to do tuckpointing and window replace- ment at the property located at 156 East Chicago Street . The loan application requests an interest subsidy on a loan totaling $21 , 561 . 35 . Old Kent Bank is providing the borrower the $21, 561 . 35 at an interest rate of 9 . 25% over 60 months . The borrower will be responsible for 6% interest . The City will subsidize the remaining payments over 60 months . The total obligation to the City for the 60-month period is $1 , 999 . 90 . Special Business Loan Program Application November 20, , 1998 Page 2 COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None . FINANCIAL IMPACT The City will be responsible for subsidizing interest payments over 60 months, which will total $1, 999 . 90 . Funds are avail- able in account number 350-0000-795 . 78-03 , Commercial Rehab Loans . Avv, LEGAL IMPACT None . ALTERNATIVES 1 . To approve an application by Jae K. Kim and Fabiola Kim to participate in the Special Business Loan Program for Building Improvements . 2 . To reject an application for participation in the Special Business Loan Program for Building Improvements . RECOMMENDATION It is recommended to approve participation in the loan to Jae K. Kim and Fabiola Kim by subsidizing the interest at the levels allowed. Respectfully submitted, Joyce A. Parker City Manager amp 02 98 10:24 FROM:OKB'ELGIN COMMERCIAL 847-742-4593 TO:184(8.51Db1e �rye. •e� OLD KENT Old Kent Bank Business eankingVi5lan 113 Ems%Highland AVenW Elgin,IL a0120 Dann zlmmar Vito President Tel: 947-971$687 Fan:847.743-4533 November 2, 1998 Ray Moller SENT VIA FAX TO 931-5610 �g� Director of Business Services City of Elgin 150 Dexter Court Elgin,Il 60120-5555 Subject: Facade Improvement Program in Favor of Jae K&Fabiola B Kim, d/b/a Bella's Fashions We are seeking the approval of the Special Loan Program for the subject applicants. As evidenced by the Application dated June 26, 1998,the subjects are in the process of improving the facade of their storefront located at 156 E. Chicago,Elgin,Il 60120. Enclosed please find the following information to give you an overview of the transaction and to insure compliance with the program: 1. Contractor bids totaling$21,561.35, from Seyller's Inc. and Window Outlet for work to p be completed on the facade of the 156 E. Chicago property. 2. Loan approval for the total$21,561.35, with a 5 year amortization,9.25%interest, and monthly principal and interest payments of$450.00 Based on the above,the loan was approved as presented by Old Kent Bank and submitted to you for approval under this special program. Sincerely Daniel Zimmer Vice President Business Banking To: Old Kent Bank Date: December 4, 1998 105 S. York Street Elmhurst, IL 60126 C O PVI Please use this as your authority to disburse the proceeds of a note dated for $ 21,561.35 as follows: December 41998 $ Credit Account# Name: $ Cashiers Check to: Deliver to: $ Wire transfer to: Bank Name: ABA # For Credit to: Other Information: $ Loan proceeds are to be disbursed from time to time at a later date. $ Other: Ol d Kent Bank By ByJae Bellas F shions Dann Zimmer l ✓ Its Vice President By Fabio a B. Ki /B/A Bellas Fashions