Deed - 2420-2424 Merced St - File 1356, 2002

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The Redevelopment Agency of the City of San Leandro SECURED PROMISSORY NOTE SAn Leandro, California ,- $ 150,000.00 A. Loan Amount. For adequate value received, the undersigned borrower, MERCED STREET PROPERTY ("Maker"), promises to pay to the order of THE REDEVELOPMENT AGENCY OF THE CITY OF SAN LEANDRO ("Holder"), at 835 E. 14th Street, San Leandro, California, or at such other place as Holder may from time to time designate by written notice to Maker, the principal sum of One Hundred Fifty Thousand Dollars and No Cents, together with simple interest of 5.40% per annum computed monthly on the outstanding principal balance commencing on the date first written. above and ending on the date on which the principal sum is paid in full (the "Loan Amount"). B. Prepay. Maker may prepay, without penalty or premium, any amount of the principal and interest under this Note. Any amounts prepaid shall first be credited against accrued interest and the balance shall be credited against principal. C. Installment Payments. Upon the condition that Beneficiary provides notice to Trustor pursuant to Section B.1. of that deed of trust dated the same as this Note ("Deed of Trust") executed by Maker (as Trustor) to the City of San Leandro (as Trustee) for the benefit of Holder (as Beneficiary), After a default as described there in, Maker shall pay Holder the Loan Amount in no more than 60 consecutive monthly installments of principal and interest beginning on the first day of the month after the month in which such notice is provided by Beneficiary. Each installment shall be no less than 1/60th of the outstanding principal and accrued interest as of the last day of the month preceding the month in which the installment is due. Should no such default occur within 10 years of the date above, this Note shall thereupon be cancelled and promptly returned by Holder to Maker and the Deed of Trust shall be reconveyed, all without any payment or principle or interest hereunder by Maker. D. Default. If default occurs in the payment of this note when due or in the performance of any of the agreements in the Deed of Trust securing this Note and the default is not cured within thirty days, the entire principal sum and accrued interest will at once become due and payable, without notice, at the option of Holder. Thereafter, interest shall accrue at the maximum legal rate permitted to be charged by non-exempt lenders under the usury laws of the State of California. Failure to exercise such option will not constitute a waiver of the right to exercise it in the event of any subsequent default. Provided that should the default be non -monetary in nature and cannot be cured in thirty days using due diligence, Maker shall not be deemed in default if Maker commences to cure as soon as reasonably possible and diligently prosecutes such cure to completion. E. Costs. Maker agrees to pay the following costs, expenses, and attorneys' fees paid or incurred by Holder, or adjudged by a Court: (1) reasonable costs of collection, costs, expenses, and attorneys' fees paid or incurred in connection with the collection or enforcement of this Note, whether or not suit is filed; and (2) costs of suit and such sum as the Court may adjudge as attorneys' fees in an action to enforce payment of this Note or any part of it.