10B Action 2009 0406 - Laserfiche WebLink

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PREDEVELOPMENT PROMISSORY NOTE $2,200,000 San Leandro, California 2009 FOR VALUE RECEIVED, Alameda Housing Associates, L.P., a California limited partnership ("Borrower") promises to pay to the Redevelopment Agency of the City of San Leandro, a public body corporate and politic ("Agency"), in lawful money of the United States of America, the principal sum of Two Million, Two Hundred Thousand Dollars ($2,200,000) or so much thereof as may be advanced by Agency from time to time pursuant to the Loan Agreement referred to below, in the manner provided below, together with interest on the outstanding principal balance in accordance with the terms and conditions described herein. Interest shall accrue on the outstanding principal balance at a rate equal to three percent (3%) simple interest per annum commencing upon the date of disbursement thereof. Interest shall be calculated on the basis of a year of 365 days and charged for the actual number of days elapsed. This Predevelopment Promissory Nate (this "Note") has been executed and delivered pursuant to and in accordance with the Owner Participation and Loan Agreement, dated as of the date hereof, by and between Borrower and Agency (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 is secured by an assignment of agreements, reports, plans, specifications and approvals pursuant to that certain Assignment of Agreements, Plans and Specifications dated as of the date hereof, executed by Borrower for the benefit of Agency (the "Assignment Agreement"). Agency shall be entitled to the benefits of the security provided by the Assignment Agreement and shall have the right to enforce the covenants and agreements contained herein, in the Loan Agreement and the Assignment Agreement. 1. PAYMENTS 1.1 MATURITY DATE. (a) Subject to Section 1.1(b), the entire principal balance outstanding under this Note, together with interest accrued thereon and any other sums accrued hereunder, shall be due and payable in one lump sum on the date (the "Maturity Date") which is the earlier of: (i) the date that Borrower acquires a leasehold interest in the Property, or (ii) the third (3`d) anniversary of the date of this Note (provided however, if Borrower is unable to secure financing for the Project despite Borrower's good faith efforts, Agency shall agree to extend the Maturity Date by eighteen (1$) months. Notwithstanding the foregoing, if the Agency provides