EXHIBIT A
LOAN AGREEMENT
SCHEDULE 13D
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ADJUSTABLE RATE NOTE
Dated June 17, 1994, Beckley, West Virginia
Address of Secured Property: ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
1. BORROWER'S PROMISE TO PAY
In return for a loan that I have received, I promise to pay U.S.
$200,050.00, plus interest, to the order of the Lender. The Lender is (Bank Name
Omitted) , organized and existing under the laws of the United States of
America, (Street ▇▇▇▇▇▇▇ ▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇) , ▇▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇.
I understand that the Lender may transfer this Note. The Lender or anyone who
takes this note by transfer and who is entitled to receive payments under this
Note is called the "Note Holder."
2. INTEREST
Interest will be charged on unpaid principal until the full amount has been
paid. I will pay interest at a yearly rate of 7.99%. The interest rate I will
pay will change in accordance with Section 4 of this Note. The interest rate
required by this Section 2 and Section 4 of this Note is the rate I will pay
both before and after any default described in Section 7(C) of this Note.
Interest will be calculated on a 30/360 basis.
3. PAYMENT
(A)Scheduled Payments
I will make my scheduled payments on the 17th day of each month beginning
on July 17, 1994.
(B)Maturity Date and Place of Payments
I will make these payments as scheduled until I have paid all of the
principal and interest and any other charges described below that I may owe
under this Note. My scheduled payments will be applied to interest before
principal. If, on June 17, 2019, I still owe amounts under this Note, I
will pay those amounts in full on that date, which is called the "maturity
date."
I will make my scheduled payments at (Street ▇▇▇▇▇▇▇ ▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇) ,
▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇ or at a different place if required by the Note Holder.
(C)Amount of My Initial Scheduled Payments Each of my initial scheduled
payments will be in the amount of U.S.$ 1,542.69. This amount may change.
(D)Scheduled Payment Changes
Changes in my scheduled payments will reflect changes in the unpaid
principal of my loan and in the interest rate that I must pay. The Note
Holder will determine my new interest rate and the changed amount of my
scheduled payment in accordance with Section 4 of this Note.
(4) INTEREST RATE AND SCHEDULED PAYMENT CHANGES
(A)Change Dates
The interest rate that I will pay may change on the 17th day of June, 1999
and on every 17th day of each 60th month thereafter.
(B)The Index
Beginning with the first Change Date, my interest rate will be based on an
Index. The "Index" is "The Weekly Average Yield of US Treasury Securities
Adjusted to a Constant Maturity of Five Years." The initial value for this
is 6.56%. The most recent Index figure available as of the date 45 days
before each Change Date is called the "Current Index." If the Index is no
longer valid, the Note Holder will choose a new index which is based upon
comparable information. The Note Holder will give me notice of this choice.
(C)Calculation of Changes
Before each Change Date, the Note Holder will calculate my new interest
rate by adding three percentage points (3.000%) to the Current Index. The
result of this calculation will be rounded off by the Note Holder to the
nearest 0.125%. Subject to limitations stated in Section 4(D) below, this
amount will be my interest rate until the next Change Date. The Note Holder
will then determine the amount of the scheduled payment that would be
sufficient to repay the unpaid principal that I am expected to owe at the
Change Date in full on the maturity date at my new interest rate in
substantially equal payments. The result of this calculation will be the
new amount of my scheduled payment.
(D)Limits on Interest Rate Changes
My interest rate will never be increased or decreased on any single change
date by more than two percentage points (2.000%) from the rate of interest
I have been paying for the preceding period. My interest rate will never be
greater than 13.990% or less than 3.000%.
(E)Effective Date of Changes
My new interest rate will become effective on each Change Date. I will pay
the amount of my new scheduled payment beginning on the first scheduled
payment date after the Change Date until the amount of my scheduled payment
changes again.
(F)Notice of Changes
At least 25 days, but no more than 120 days, before the effective date of
any payment change, the Note Holder will deliver or mail to me a notice of
any changes in my interest rate and the amount of my scheduled payment. The
notice will include information required by law to be given to me and also
the title and telephone number of a person who will answer any question I
may have regarding the notice.
5. BORROWER'S RIGHT TO PREPAY
I have the right to make payments of principal at any time before they are
due. A payment of principal only is known as a "prepayment." When I make a
prepayment, I will tell the Note Holder in writing that I am doing so.
I may make a full prepayment or partial prepayments without paying any
prepayment charge. The Note Holder will use all of my prepayments to reduce the
principal that I owe under this Note. If I make a partial prepayment, there will
be no changes in the due dates of my scheduled payments unless the Note Holder
agrees in writing to those changes. My partial prepayment may reduce the amount
of my scheduled payments after the first Change Date following my partial
prepayment. However, any reduction due to my partial prepayment may be offset by
an interest rate increase.
6. LOAN CHARGES
If a law, which applies to this loan and which sets maximum loan charges,
is finally interpreted so that the interest or other loan charges collected or
to be collected in connection with this loan exceed the permitted limits, then:
(i) any such loan charge shall be reduced by the amount necessary to reduce the
charge to the permitted limit; and (ii) any sums already collected from me which
exceeded permitted limits will be refunded to me. The Note Holder may choose to
make this refund by reducing the principal I owe under this Note or by making a
direct payment to me. If a refund reduces principal, the reduction will be
treated as a partial prepayment.
7. BORROWER'S FAILURE TO PAY AS REQUIRED
(A)Late Charges for Overdue Payments
If the Note Holder has not received the full amount of any scheduled
payment by the end of 10 calendar days after the date it is due, I will pay
a late charge to the Note Holder.
The amount of the charge will by 5.000% of my overdue payment of principal
and interest but not more than U.S.$ 5.00.
I will pay this late charge promptly but only once on each payment.
(B) Set-Off
I agree that the Note Holder may set-off any amount due and payable under
this Note against any right I have to receive money from the Note Holder.
An amount due and payable under this Note is any portion of a scheduled
payment not paid on or before its due date, even if the due date of the
Note has not been accelerated.
My right to receive moneyfrom the Note Holder includes any deposit accout
balance I have with the Note Holder (including savings, checking and NOW
accounts), any time deposit (including certificates of deposit), any money
owed to me on an item presented to the Note Holder or in the Note Holder's
possession for collection or exchange, and any repurchase agreement or
other non-deposit obligation.
If my right to receive money from the Note Holder is also
owned by someone who has not agreed to pay this Note, the Note Holder's
right of set-off will apply to my interest in the obligation and to any
other amounts that I could withdraw on my sole request or endorsement. The
Note Holder's right of set-off does not apply to an account or other
obligation where my rights are only as a fiduciary. It also does not apply
to any ▇▇▇ account or other tax-deferred retirement account. The Note
Holder will not be liable for the dishonor of any check when the dishonor
occurs because the Note Holder set-off this debt against any of my
accounts. I agree to hold the Note Holder harmless from any claims arising
as a result of the evercise of the right of set-off.
(C)Default
If I do not pay the full amount of each scheduled payment on the date it is
due, I will be in default.
(D)Notice of Default
If I am in default, the Note Holder may send me a written notice telling me
that if I do not pay the overdue amount by a certain date, the Note Holder
may require me to pay immediately the full amount of principal which has
not been paid and all the interest that I owe on that amount. That date
must be at least 30 days after the date on which the notice is delivered or
mailed to me.
(E)No Waiver By Note Holder
Even if, at a time when I am in default, the Note Holder does not require
me to pay immediately in full or does not exercise the right of set-off as
described above, the Note Holder will still have the right to do so if I am
in default at a later time.
(F)Payment of Note Holder's Costs and Expenses
If the Note Holder has required me to pay immediately in full as described
above, the Note Holder will have the right to be paid back by me for all of
its costs and expenses in enforcing this Note to the extent not prohibited
by applicable law.
8. GIVING OF NOTICES
Unless applicable law requires a different method, any notice that must be
given to me under this Note will be given by delivering it or by mailing it by
first class mail to me at the Property Address above or at a different address
if I give the Note Holder a notice of my different address.
Any notice that must be given to the Note Holder under this Note will be
given by mailing it by first class mail to the Note Holder at the address stated
in Section 3(B) above or at a different address if I am given a notice of that
different address.
9. OBLIGATIONS OF PERSONS UNDER THIS NOTE
If more than one person signs this Note, each person is fully and
personally obligated to keep all of the promises made in this Note, including
the promise to pay the full amount owed. Any person who is a guarantor, surety
or endorser of this Note is also obligated to do these things. Any person who
takes over these obligations, including the obligations of a guarantor, surety
or endorser of this Note, is also obligated to keep all of the promises made in
this Note. The Note Holder may enforce its rights under this Note against each
person individually or against all of us together. This means that any one of us
may be required to pay all of the amounts owed under this Note.
10. WAIVERS
I and any other person who has obligations under this Note waive the rights
of presentment and notice of dishonor. "Presentment" means the right to require
the Note Holder to demand payment of amounts due. "Notice of Dishonor" means the
right to require the Note Holder to give notice to other persons that amounts
due have not been paid.
11. SECURED NOTE
In addition to the protections given to the Note Holder under this Note, a
Mortgage, Deed of Trust or Security Deed (the "Security Instrument"), dated the
same date as the Note, protects the Note Holder from possible losses which might
result if I do not keep the promises which I make in this Note. That Security
Instrument describes how and under what conditions I may be required to make
immediate payment in full of all amounts I owe under this Note. Some of those
conditions are described as follows:
Transfer of the Property or a Beneficial Interest in Borrower.
If all or any part of the Property or any interest in it is sold or
transferred (or if a beneficial interest in Borrower is sold or transferred and
Borrower is not a natural person) without Lender's prior written consent, Lender
may, at its option, require immediate payment in full of all sums secured by
this Security Instrument. However, this option shall not be exercised by Lender
if exercise is prohibited by federal law as of the date of the Security
Instrument.
If Lender exercises this option, Lender shall give borrower notice of
acceleration. This notice shall provide a period of not less than 30 days from
the date the notice is delivered or mailed within which Borrower mus pay all
sums secured by this Security Instrument. If Borrower fails to pay these sums
prior to the expiration of this period, Lender may invoke any remedies permitted
by this Security Instrument without further notice or demand on Borrower.
WITNESS THE HAND(S) AND SEAL(S) OF THE UNDERSIGNED
/s/ ▇▇▇ ▇. ▇▇▇▇▇▇▇, ▇▇. (Seal)
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▇▇▇ ▇. ▇▇▇▇▇▇▇, ▇▇. Borrower
