1
[AMERICAN NATIONAL BANK LOGO]
Ex.1
PROMISSORY NOTE
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Principal Loan Date Maturity Loan No Call Collateral Account Officer Initials
$150,000.00 07-29-1997 07-29-1998 19792
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References in the shaded area are for Lender's use only and do not limit the
applicability of this document to any particular loan or item.
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BORROWER: XXXXXX X. XXXXXXXXXX (SSN: ###-##-####) Lender: AMERICAN NATIONAL BANK & TRUST CO. OF CHICAGO
XXXXXX X. XXXXXXXXXX (SSN: ###-##-####) EXECUTIVE & PROFESSIONAL DIVISION
789 PLUM TREE ROAD 00 X. XXXXXXX XXXXXX
XXXXXXXXXX XXXXX, XX 00000 XXXXXXX, XX 00000
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Principal Amount: $150,000.00 Initial Rate: 9.000% Date of Note: July 29,1997
PROMISE TO PAY. I PROMISE TO PAY TO AMERICAN NATIONAL BANK & TRUST CO. OF
CHICAGO ("LENDER"), OR ORDER, IN LAWFUL MONEY OF THE UNITED STATES OF AMERICA
THE PRINCIPAL AMOUNT OF ONE HUNDRED FIFTY THOUSAND & 00/100 DOLLARS
($150,000.00), TOGETHER WITH INTEREST ON THE UNPAID PRINCIPAL BALANCE FROM JULY
29, 1997 UNTIL PAID IN FULL.
PAYMENT. I WILL PAY THIS LOAN IN ONE PRINCIPAL PAYMENT OF $150,000.00 PLUS
INTEREST ON JULY 29, 1998. THIS PAYMENT DUE JULY 29, 1998 WILL BE FOR ALL
PRINCIPAL AND ACCRUED INTEREST NOT YET PAID. IN ADDITION I WILL PAY REGULAR
MONTHLY PAYMENTS OF ALL ACCRUED UNPAID INTEREST DUE AS OF EACH PAYMENT DATE,
BEGINNING AUGUST 31, 1997, WITH ALL SUBSEQUENT INTEREST PAYMENTS TO BE DUE ON
THE SAME DAY OF EACH MONTH AFTER THAT. I will pay Lender at Xxxxxx's address
shown above or at such other place as Lender may designate in writing.
Unless otherwise agreed or required by applicable law, payments will be
applied first to any unpaid collection costs and any late charges, then to
any unpaid interest, and any remaining amount to principal.
VARIABLE INTEREST RATE. The interest rate on this Note is subject to change
from time to time based on changes in an index which is the AMERICAN
NATIONAL BANK & TRUST COMPANY OF CHICAGO BASE RATE (the "Index"). The Index is
not necessarily the lowest rate charged by Lender on its loans and is set by
Lender in its sole discretion. If the Index becomes unavailable during the
term of this loan, Xxxxxx may designate a substitute index after notifying
me. Lender will tell me the current Index rate upon my request. I understand
that Lender may make loans based on other rates as well. The interest rate
change will not occur more often than each DAY. THE INDEX CURRENTLY IS
8.500% PER ANNUM. THE INTEREST RATE TO BE APPLIED TO THE UNPAID PRINCIPAL
BALANCE OF THIS NOTE WILL BE AT A RATE OF 0.500 PERCENTAGE POINTS OVER THE
INDEX, RESULTING IN AN INITIAL RATE OF 9.000% PER ANNUM. NOTICE: Under no
circumstances will the interest rate on this Note be more than the maximum
rate allowed by applicable law.
PREPAYMENT. I may pay without penalty all or a portion of the amount owed
earlier than it is due. Early payments will not, unless agreed to by Xxxxxx in
writing, relieve me of my obligation to continue to make payments under the
payment schedule. Rather, they will reduce the principal balance due.
LATE CHARGE. If a payment is 10 DAYS OR MORE LATE, I will be charged 5.000%
OF THE REGULARLY SCHEDULED PAYMENT OR $10.00, WHICHEVER IS GREATER.
DEFAULT. I will be in default if any of the following happens: (a) I fail to
make any payment when due. (b) I break any promise I have made to Lender, or I
fail to comply with or to perform when due any other term, obligation,
covenant, or condition contained in this Note or any agreement related to this
Note, or in any other agreement or loan I have with Lender. (c) Any
representation or statement made or furnished to Lender by me or on my behalf
is false or misleading in any material respect either now or at the time made
or furnished. (d) I die or become insolvent, a receiver is appointed for any
part of my property, I make an assignment for the benefit of creditors, or any
proceeding is commenced either by me or against me under any bankruptcy or
insolvency laws. (e) Any creditor tries to take any of my property on or in
which Xxxxxx has a lien or security interest. This includes a garnishment of
any of my accounts, including deposit accounts, with Lender. (f) Any of the
events described in this default section occurs with respect to any guarantor
of this Note. (g) Lender in good xxxxx xxxxx itself insecure.
LENDER'S RIGHTS. Upon default, Xxxxxx may declare the entire unpaid principal
balance on this Note and all accrued unpaid interest immediately due, without
notice, and then I will pay that amount. Upon default including failure to
pay upon final maturity, Lender, at its option, may also, if permitted under
applicable law, increase the variable interest rate on this Note to 3.500
percentage points over the Index. The interest rate will not exceed the
maximum rate permitted by applicable law. Lender may hire or pay someone else
to help collect this Note if I do not pay. I also will pay Lender that
amount. This includes, subject to any limits under applicable law, Xxxxxx's
attorneys' fees and Xxxxxx's legal expenses whether or not there is a lawsuit,
including attorneys' fees and legal expenses for bankruptcy proceedings
(including efforts to modify or vacate any automatic stay or injunction),
appeals, and any anticipated post-judgment collection services. If not
prohibited by applicable law, I also will pay any court costs, in addition to
all other sums provided by law. THIS NOTE HAS BEEN DELIVERED TO LENDER AND
ACCEPTED BY XXXXXX IN THE STATE OF ILLINOIS. IF THERE IS A LAWSUIT, I AGREE
UPON XXXXXX'S REQUEST TO SUBMIT TO THE JURISDICTION OF THE COURTS OF COOK
COUNTY, THE STATE OF ILLINOIS. THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF ILLINOIS.
RIGHT OF SETOFF. I grant to Lender a contractual possessory security interest
in, and hereby assign, convey, deliver, pledge, and transfer to Lender all my
right, title and interest in and to, my accounts with Xxxxxx (whether checking,
savings, or some other account), including without limitation all accounts
held jointly with someone else and all accounts I may open in the future,
excluding however all IRA and Xxxxx accounts, and all trust accounts for
which the grant of a security interest would be prohibited by law. I
authorize Xxxxxx, to the extent permitted by applicable law, to charge or
setoff all sums owing on this Note against any and all such accounts.
GENERAL PROVISIONS. Lender may delay or forgo enforcing any of its rights or
remedies under this Note without losing them. I and any other person who
signs guarantees or endorses this Note, to the extent allowed by law, waive
presentment, demand for payment protest and notice of dishonor. Upon any
change in the terms of this Note, and unless otherwise expressly stated in
writing, no party who signs this Note, whether as maker, guarantor,
accommodation maker or endorser, shall be released from liability. All such
parties agree that Lender may renew or extend (repeatedly and for any length
of time) this loan, or release any party or guarantor or collateral; or
impair, fail to realize upon or perfect Xxxxxx's security interest in the
collateral. All such parties also agree that Xxxxxx may modify this loan
without the consent of or notice to anyone other than the party with whom
the modification is made. The obligations under this Note are joint and
several. This means that the words "I", "me", and my" mean each and all of the
persons signing below.
PRIOR TO SIGNING THIS NOTE, I, AND EACH OF US, READ AND UNDERSTOOD ALL THE
PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. I,
AND EACH OF US, AGREE TO THE TERMS OF THE NOTE AND ACKNOWLEDGE RECEIPT OF A
COMPLETED COPY OF THE NOTE.
BORROWER:
x /s/ Xxxxxx X. Xxxxxxxxxx x /s/ Xxxxxx X. Xxxxxxxxxx
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Xxxxxx X. Xxxxxxxxxx Xxxxxx X. Xxxxxxxxxx
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