Exhibit 4.2
NOTE
----
$30,000,000 August 28, 1997
FOR VALUE RECEIVED, the undersigned, CORNERSTONE REALTY INCOME TRUST,
INC., a corporation organized under the laws of Virginia (the "Borrower") hereby
promises to pay to the order of FIRST UNION NATIONAL BANK (the "Lender"), at the
times, at the place and in the manner provided in the Line of Credit Agreement
hereinafter referred to, the principal sum of up to Thirty Million Dollars
($30,000,000), or, if less, the aggregate unpaid principal amount of all Loans
disbursed by the Lender under the Line of Credit Agreement referred to below,
together with interest at the rates as in effect from time to time with respect
to each portion of the principal amount hereof, determined and payable as
provided in Article II of the Line of Credit Agreement.
This Note is a Note referred to in, and is entitled to the benefits of,
the Line of Credit Agreement dated as of August 28, 1997 (as amended, restated
or otherwise modified, the "Line of Credit Agreement") between Borrower, the
lenders party thereto and First Union National Bank as Agent for the Lenders.
The Line of Credit Agreement contains, among other things, provisions for the
time, place and manner of payment of this Note, the determination of the
interest rate borne by and fees payable in respect of this Note, acceleration of
the payment of this Note upon the happening of certain stated events and the
mandatory repayment of this Note under certain circumstances.
The Borrower agrees to pay on demand all actual costs of collection,
including reasonable attorneys' fees, if any part of this Note, principal or
interest, is collected after maturity with the aid of an attorney.
Presentment for payment, notice of dishonor, protest and notice of
protest are hereby waived.
THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE
LAWS OF THE COMMONWEALTH OF VIRGINIA.
IN WITNESS WHEREOF, the Borrower has caused this Note to be executed
under seal by a duly authorized officer as of the day and year first above
written.
[CORPORATE SEAL] CORNERSTONE REALTY INCOME TRUST, INC.
By: /s/ Xxxxx X. Xxxxxx
-----------------------------------------
Name: Xxxxx X. Xxxxxx
---------------------------------------
Title: Chief Executive Officer and President
--------------------------------------