Commercial Variable Rate Promissory Note between American Consumers, Inc., Shop Rite Supermarkets, and Northwest Georgia Bank
Contract Categories:
Business Finance
›
Note Agreements
Summary
American Consumers, Inc. and Shop Rite Supermarkets have entered into a loan agreement with Northwest Georgia Bank for $171,710. The loan carries a variable interest rate based on the Wall Street Journal Prime Rate plus 1.5%, starting at 9% per year, with monthly payments of $3,575.96 and a final payment due on April 30, 2006. The loan is secured by the borrowers' accounts and any additional collateral described in related security instruments. Late payments incur a 5% fee, and the lender may increase the interest rate in case of default.
EX-10.20 4 d26686_ex10-20.txt COMMERCIAL VARIABLE RATE PROMISSORY NOTE COMMERCIAL VARIABLE RATE PROMISSORY NOTE BORROWER American Consumers, Inc. Shop Rite Supermarkets LENDER ADDRESS Northwest Georgia Bank 418 Alamar Street POST OFFICE BOX 5377 Ft Oglethorpe, GA 30742 FT OGLETHORPE, GA 30742 Telephone No. Identification No. (706) 861-3010 ID No. 58-1033765 ###-###-#### 58-1033765
SSC CN/34 CAT/1 PURP/E CT/307 PROMISE TO PAY: For value received, Borrower promises to pay the order of Lender the principal amount of One Hundred Seventy One Thousand Seven Hundred Ten and no/ 100 Dollars ($171,710.00), plus interest on the unpaid principal balance at the rate and in the manner described below, until all amounts owing under this Note are paid in full. All amounts received by Lender shall be applied first to late charges and expenses, accrued unpaid interest, then to unpaid principal, or in any other order as determined by Lender, in Lender's sole discretion as permitted by law. INTEREST RATE: This Note has a variable rate feature. The interest rate on this Note may change from time to time if the Index Rate identified below changes. Interest shall be computed on the basis of the actual number of days over 360 days per year. Interest on this Note shall be calculated and payable at a variable rate equal to 1.500 % per annum over the Index Rate. The initial interest rate on this Note shall be 9.000 % per annum. Any change in the interest rate resulting from a change in the Index Rate will be effective on: The First Day Of Each Month. INDEX RATE: The Index Rate for this Note shall be: THE WALL STREET JOURNAL PRIME RATE AS PUBLISHED BY THE WALL STREET JOURNAL. If the Index Rate is redefined or becomes unavailable, then Lender may select another index rate which is substantially similar. DEFAULT RATE: If there is an Event of Default under this Note, the Lender may, in its discretion, increase the interest rate on this Note to: 16.00% or the maximum interest rate Lender is permitted to charge by law, whichever is less. PAYMENT SCHEDULE: Borrower shall pay the principal and Interest according to the following schedule: 59 payment of $3,575.96 beginning May 31, 2001 and continuing at monthly time intervals thereafter. A final payment of the unpaid principal balance plus accrued interest is due and payable on April 30, 2006. PREPAYMENT: This Note may be prepaid in part or in full on or before its maturity date. If this Note contains more than one installment, any partial prepayment will not affect the due date or the amount of any subsequent installment, unless agreed to, in writing, by Borrower and Lender. If this Note is prepaid in full there will be: [X] No minimum finance charge. [_] A minimum finance charge of $_____________. [_] A prepayment of: LATE CHARGE: If a payment is received more than 9 days late, Borrower will be charged a late charge of: [X] 5.00% of the unpaid portion of the payment; [_] $_________________ or _______________% of the unpaid portion of the payment, whichever is [_] greater [_] less. COLLATERAL: To secure the payment and performance of obligations incurred under this Note, Borrower grants Lender a security interest in all of Borrower's right, title, and interest in all monies, instruments, savings, checking and other accounts of Borrower (excluding IRA, Keogh and other accounts subject to tax penalties if so assigned) that are now or in the future in Lender's custody or control. [X] If checked, the obligations under this Note are also secured by the collateral described in any security instruments executed in connection with this Note, and any collateral described in any other security instruments securing this Note or all of Borrower's obligations to Lender. RENEWAL: [_] If checked, this Note is a renewal, but not a satisfaction, of Loan Number _____________ - -------------------------------------------------------------------------------- THE PERSONS SIGNING BELOW ACKNOWLEDGE THAT THEY HAVE READ, UNDERSTAND, AND AGREE TO THE PROVISIONS OF THIS NOTE, INCLUDING THE TERMS AND CONDITIONS ON THE REVERSE SIDE, AND FURTHER ACKNOWLEDGE RECEIPT OF AN EXACT COPY OF THIS NOTE. Dated: April 30, 2001 BORROWER: American Consumers, Inc. BORROWER: American Consumers, Inc. Shop Rite Supermarkets Shop Rite Supermarkets By: /s/ Paul R. Cook By: /s/ Michael A. Richardson - ----------------------------------- --------------------------------- Paul R. Cook Michael A. Richardson Executive V. P. and Treasurer CEO, President BORROWER: BORROWER: - ----------------------------------- ------------------------------------- BORROWER: BORROWER: - ----------------------------------- ------------------------------------- BORROWER: BORROWER: - ----------------------------------- -------------------------------------
