Deferral and Advance Agreement between NTS Development Company, Residential Management Company, and NTS Mortgage Income Fund (December 31, 2009)
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Summary
NTS Development Company and Residential Management Company have agreed to defer payments owed to them by NTS Mortgage Income Fund and its subsidiaries as of December 31, 2009, allowing these amounts to accrue until March 31, 2010, except as permitted by the Fund’s cash flow. NTS will also provide necessary advances to cover the Fund’s expenses through March 31, 2010, excluding principal repayments to National City Bank. All deferrals and advances will accrue interest at 5.34% and require Audit Committee approval. The agreement is signed by NTS representatives and is effective until March 31, 2010.
EX-10.2 3 exhibit_10-2.htm EXHIBIT 10.2 exhibit_10-2.htm 
10172 Linn Station Road
Louisville, Kentucky 40223
| December 31, 2009 |
To the Audit Committee of the Board of Directors of NTS Mortgage Income Fund (the “Audit Committee”):
NTS Development Company and Residential Management Company (collectively referred to herein as “NTS”) agree to defer amounts owed to them by the NTS Mortgage Income Fund or its subsidiaries (the “Fund”) as of December 31, 2009, and to permit any such amounts to accrue from the date of this agreement through March 31, 2010, other than as permitted by cash flows of the Fund. As of December 31, 2009, the Fund owed $4,441,567 to NTS and their affiliates.
NTS further agrees to advance to the Fund such monies as are reasonably necessary to cover any shortfalls for expenses incurred between December 31, 2009 and March 31, 2010, and for those expenses provided for in the Fund’s 2010 Budget as approved by the Fund’s Board of Directors through March 31, 2010. Unless NTS otherwise agrees, any such advances shall exclude any principal repayments on the mortgage note owed by the Fund to National City Bank.
The terms of any deferrals or advances from NTS will be presented to the Audit Committee for prior approval and may be documented through a promissory note or notes from the Fund to NTS or their affiliates which shall mature on March 31, 2010. Any amounts so deferred or advanced by NTS shall accrue interest at the same rate as the NTS cost of funds rate which is currently 5.34%.
NTS has the financial ability to allow such deferrals and advances and will provide evidence of such upon reasonable request of the Audit Committee.
| /s/ J.D. Nichols | |
| J.D. Nichols Chairman of NTS Development Company and Residential Management Company | |
| /s/ Brian F. Lavin | |
| Brian F. Lavin President of NTS Development Company and Residential Management Company |
