Blue Valley Bancorp Proposed Term Sheet with JPMorgan
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Summary
This term sheet outlines a proposed loan agreement between Blue Valley Bancorp and JPMorgan, detailing two principal loan amounts totaling over $17 million, both maturing on January 31, 2009, with interest rates set at LIBOR plus 250 basis points. The agreement specifies collateral requirements, including first and second mortgages on specified properties, and waives certain existing loan covenant violations. Blue Valley Bancorp is responsible for all closing costs and must provide insurance and updated appraisals. The terms are subject to final bank approval and must be accepted by October 17, 2008.
EX-10.9 2 c47115exv10w9.htm EXHIBIT 10.9 EXHIBIT 10.9
Exhibit 10.9
BLUE VALLEY BANCORP
PROPOSED TERM SHEET
PROPOSED TERM SHEET
Borrower: Blue Valley Bancorp
Principal Balance: | 1) $15,000,000 | |
2)$ 2,330,916 | ||
Maturity Date: | 1)January 31, 2009 | |
2)January 31, 2009 | ||
Interest Rate: | 1)LIBOR + 250bps | |
2)LIBOR + 250bps | ||
Payment Terms: | 1) Same as existing | |
2) Same as existing |
Collateral: Same as existing agreement plus 1st REM on property located at 13401 Mission Rd., Leawood, Ks, 2nd REM on property located at 7900 College Blvd., Overland Park, KS.
Loan Covenants: No change in NPA covenant or Capital covenants. No test for the ROAA covenant at 12/31/08. Any loan covenant violations currently outstanding as of 09/30/08 will be waived at the time when this proposed term sheet is accepted by the borrower.
Other: Borrower will be responsible for all costs associated to the closing of this transaction including but not limited to title work, filing fees, and preparation of all loan documentation. Borrower to provide evidence of insurance listing JPMorgan as mortgage holder on each of the properties described above. Bank will order an updated appraisal on both properties at the expense of the Borrower. In the event either property is sold or refinanced at an amount acceptable to the Bank, 100% of the net sales or refinancing proceeds will be applied to the outstanding principal balance of the Borrowers loan obligations at the Bank.
Please note that the terms and conditions noted above are for discussion purposes only and are subject to final Bank approval, no adverse change in the financial condition of Borrower, acceptable loan documentation and a final closing date of no later than October 31, 2008 unless extended in writing by the Bank at its sole discretion. If you are in agreement with the proposed terms and conditions, please indicate by signing and dating below and returning the executed term sheet by no later than October 17, 2008.
Agreed to and Accepted by: | ||||||
Blue Valley Bancorp | ||||||
By: | /s/ Mark A. Fortino | Date: 10/15/08 |
Its: Chief Financial Officer