HomeMy WebLinkAboutFreddie's Associates DBA Iron Horse Casino PROMISSORY NOTE
$102,264.00 Date: November 1, 2012
Auburn,WA.984002
FOR VALUE RECEIVED, the undersigned (hereinafter referred to as 'Borrower") promises to pay in
lawful money of the United States, THE CITY OF AUBURN, WASHINGTON (hereinafter referred to as
"Holder"), or order, at Auburn City Hall, 25 West Main Street, Auburn, Washington 98001, or at such other place
as Holder may hereafter direct, the principal sum of ONE HUNDRED TWO THOUSAND TWO HUNDRED
SIXTY FOUR AND 00/100 DOLLARS ($102,264.00), together with interest thereon from date hereof until paid at
the rate or rates set forth below
1. Interest Rate. The interest rate on the outstanding principal balance of the Loan Amount shall be FOUR
percent(4%)per annum. All interest shall be calculated on the basis of actual days elapsed over a year of 360 days.
2. Payments. In the absence of acceleration by the Holder hereof by reason of default herein or any other
agreements securing this indebtedness, the indebtedness evidenced hereby will be paid monthly beginning December
1,2012 in the amount of ONE THOUSAND THIRY TWO AND 00/100 DOLLARS($1,032.00)per month.
2.1 Interest. Interest in the amount of FOUR percent (4%) per annum will be paid monthly on the
outstanding principal balance
2.2 Principal. Principal payments will be paid monthly and the existing loan balance, plus any
accrued interest, will be paid in full on February 1, 2015, or upon sale of the property The maturity date may be
extended at the option of the Holder with an on demand maturity date.
3. Late Charge. In the event any payment or portion thereof is not paid within five (5) days commencing
with the date it is due, Borrower will pay together with such payment a late charge of One Hundred Dollars
($100.00) as liquidated damages for the additional expenses of handling such delinquent payments. Such late charge
represents a reasonable estimate of the fair compensation due to the failure of Borrower to make timely payments.
Such late charge shall be paid without prejudice to the rights of Holder to collect any other amounts provided to be
paid or to declare a default hereunder
4. Prepayment Borrower may prepay the indebtedness evidenced hereby, in whole or part, at any time
without penalty
5. Default. If Borrower defaults in the payment of any installment of the Principal or interest when due or
breaches any of the agreements securing this Note, Holder may, at its option, without notice, declare that the entire
debt shall bear interest at eighteen percent (18%) per annum Additionally, Holder may, at its option, without
notice, declare the whole amount of principal and interest then unpaid immediately due and payable. Failure
at any time to exercise either or both of these options shall not constitute a waiver of the right to exercise the same
in the event of any subsequent default or breach, or of the right to exercise the same for continuance of any default
or breach. The terms and conditions of the Uniform Commercial Code are incorporated herein by this reference.
6 Commercial Purpose. Borrower represents that the loan evidenced by this Note is not primarily for
personal, family or household purposes, and that it is primarily for business, commercial and investment purposes.
It is the specific intent of the Borrower and the Holder that this Note bear a lawful rate of interest, and if any court of
competent jurisdiction should determine that the rate herein provided for exceeds that which is statutorily permitted
for the type of transaction evidenced hereby, the interest rate shall be reduced to the highest rate permitted by
applicable law, with any excess interest theretofore collected being applied against principal, or if such principal has
been fully repaid,returned to Borrower on demand.
7 Attorney's Fees and Costs. If this note is placed in the hands of an attorney for collection or should any
action be brought for the collection of any principal or interest of this Note, Borrower promises and agrees to pay all
costs thereof, including such additional sum as attorney's fees as the court may adjudge reasonable. Said costs and
attorney's fees shall include, without limitation, costs and attorney's fees incurred in any post-judgment
proceedings, any appeal, or in any proceedings under any present or future Federal Bankruptcy Code or state
receivership statutes.
Every person at any time liable for the payment of the debt evidenced hereby waives presentment for
payment, and demand or notice of nonpayment, protest or dishonor, and expressly agrees that this Note, or any
payment hereunder, may be extended from time to time without affecting the liability of the makers hereof.
This Note is to be governed by and construed in accordance with the laws of the State of Washington. At
the option of the Holder, the venue of action herein may be laid in King County, Washington.
BORROWER AND GUARANTOR ACKNOWLEDGE LIABILITY FOR PAYMENT OF ALL
AMOUNTS OWING UNDER THIS NOTE AND AGREES THAT LENDER DOES NOT HAVE
TO RESORT TO ANY COLLATERAL BEFORE DEMANDING FULL PAYMENT FROM
BORROWER AND GUARANTOR.
ORAL AGREEMENTS OR ORAL COMMITMENTS TO LEND MONEY, EXTEND
CREDIT, OR FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT
ENFORCEABLE UNDER WASHINGTON LAW.
EXECUTED the date written above.
BORROWER FREDDIE'S ASSOCIATES,LLC
dba IRON HORSE CASINO, LLC And Chris Kealy
Personally
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Sale & Funding Data
Purchase Price
Down Payment
Net Loan Amount $ 102,264
Loan Points $ _
Gross Loan Amount $ 102,264
Interest Rate 400%
Amortizations $ 10
Monthly Payment $ 1,032
Yearly Payment $ 12,383
Principal Amount Rate tDaily eres t Interest Payment Principal Reduction
11/1/2012 $ 102,264.00 40% 0.00010959 11.21 340.88 $ 1,032.00 691.12
12/1/2012 $ 101,572.88 4.0% 0.00010959 11.13 338.58 $ 1,032 00 $ 693.42
1/1/2013 $ 100,879.46 4.0% 0.00010959 11.06 336.26 $ 1,032.00 $ 695.74
2/1/2013 $ 100,18372 4.0% 0.00010959 1098 333.95 $ 1,032.00 $ 698.081
3/1/2013 $ 99,485.671 4.0% 0.000109591 10.90 331.62 $ 1,032.00{ $ 700.38
4/1/2013 $ 98,785.29 1 4.0% 0.00010959' 1083 329.28 1 $ 1,032.00 $ 702.72
_ 5/1/2013 $ 98,082.571 4.0% 0.00010959', 10.75 326.94 1 $ 1,032.00 $ 705.06
6/1/2013 $ 97,377,511 4.0% 0.00010959 1067 324.59 $ 1,032.00 $ 70741
7/1/2013 $ 96,670101 4.0% 0.00010959 10.59 322.23 $ 1,032.00 $ 709.77
8/1/2013 $ 95,960.34 4.0% 0.00010959, 10.52 319.87 1 $ 1,03200 $ 712.13
9/1/2013 $ 95,248 21 4.0% 0.00 1044 317491 $ 1,032.00 $ 714.51
10/1/2013 $ 94,533.70 4.0% 0.00010959 10.36 315.11 $ 1,03200 $ 716.89
_11/1/2013 $ 93,816.81 4.0% 0.00010959 10.28 312.72 $ 1,032.00 $ 719.28
12/1/2013 $ 93,097.53 4.0% 0.00010959 10.20 310.33 $ 1,032.00 $ 721.67
1/1/2014 $ 92,375 86 4.09/ 0.00010959 1012 307.92 $ 1,032.00 $ 724.08
2/1/2014 $ 91,651.78 4.0% 0.00010959 10.04 305.51 $ 1,032.00 $ 726.49
3/1/2014 $ 90,925.28 1 4.0% 0.00010959 9.96 303.08 $ 1,032.00 $ 728.92
4/1/2014 $ 90,19637 1 4.0% 0.00010959 9.88 300.65 $ 1,032.00 $ 731.35
5/1/2014 $ 89,465.02 4.0% 0.00010959 9.80 298.22 $ 1,032.00 $ 733.78
6/1/2014 $ 88,731.24 4.0% 0.00010959 9.72 295.77 $ 1,032.00 $ 73623
7/1/2014 $ 87,995.011 4.0% 0.00010959 9.64 293.32 $ 1,032.00 $ 738.68
8/1/2014 $ 87,256.33 1 4.0% 0.00010959 9.56 290.85 $ 1,03200 $ 74115
9/1/2014 $ 86,515.18 1 4.0% 0.00010959 9.48 288.38 $ 1,032.00 $ 743.62
10/1/2014, $ 85,771.57 4.0% 0.00010959 9.40 285.91 $ 1,032.00 $ 746.09
11/1/2014 $ 85,025.47 4 0% 0.00010959 9.32 283.42 1 $ 1,032 00 1 $ 748.58
12/1/2014, $ 84,276.89 4.0% 0.00010959 9.24 28092 1 $ 1,03200 1 $ 751.08
1/1/2015 $ 83,525.81 4.0%1 0.00010959 9.15 1 278.42 1 $ 1,032.001 $ 753.58
2/1/20151 $ 82,772.23 1 4.0% 0.000109591 9.07 1 275.91 1 $ 83,048.14 1 $ 83,048.14 Payoff in t
3/1/2015 $ (275.91) 40%1 000010959 (0.03) (0.92)1 $ - 1 $ 0.92
4/1/2015 $ (276.83) 4.0%I 0.00010959 (003) (0.92) $ - 1 $ 0.92
5/1/2015 $ (277.75) 40%j 0.00010959 (0.03) (0.93) 0.93
6/1/2015 $ (278.68) 40%1 000010959 (0.03)1 (0.93) $ - 1 $ 0.93