Exhibit 10.13
Commitment Letter between Tidelands Bancshares, Inc. and The Bankers bank dated
February 25, 2003
Exhibit 10.13
Mr. R.E. Xxxxxx, Xx. February 25, 2003
President & C.E.O.
Tidelands Bancshares, Inc.
000 Xxxxxxxxxx Xxxxxxxxx
Mt. Peasant, South Carolina 29464
Dear Mr. Xxxxxx:
The Bankers Bank (Bank) agrees to extend, subject to specific terms and
conditions, the financing commitment outlined below to Tidelands Bancshares,
Inc. (Borrower). Our terms and conditions for a $700,000 organizational line of
credit that will replace an existing $200,000 organizational line of credit at
the Bank are listed below in summary. These are not necessarily intended to
represent all of the conditions and requirements of our commitment that would be
included in the subsequent loan documentation.
AMOUNT: Up to $700,000.00 (Seven Hundred Thousand Dollars)
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PURPOSE: To provide funds for corporate purposes.
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REPAYMENT TERMS: The line will mature August 31, 2003. Quarterly
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payments of interest based on the outstanding
balance. Any outstanding principal and accrued
interest will be due at maturity.
COLLATERAL: Unsecured.
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GUARANTORS: The loan will be guaranteed by Xxxxx X. Xxxxxxxx,
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Xxxx X. Xxxxx, Xxxxxxx X. Xxxxxxx, Xxxx X.
Xxxxxxx, Xxxxxxx X. Xxxxxxx, Xxxxxx X. Xxxxx, Xxxxx
X. Xxxxxxxx, Xxxxx X. Xxxxxxxx, Xxxxxx X. Xxxxxxx,
Xx., Xxxx X. Xxxxxx, Xx., Xxxx X. Xxxxxx, Xxxxxx X.
Xxxxxx, Xx., Xxxxxxxxx X. Xxxxxx, and Xxxxxx
Xxxxxxxx, 100%, joint and several.
RATE: The interest rate will be "Prime" as designated in
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the Money Rates Section of the Wall Street Journal.
If more than one rate is indicated in the Wall
Street Journal, the highest rate will be used. The
rate will be adjusted the same day as the rate is
published in the Wall Street Journal. The rate as
noted above will be computed on the basis of a
360-day year.
DOCUMENTATION: The Bank shall be furnished with such securities and
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credit instruments, as the Bank shall deem necessary
or expedient for its protection. All documents in
regard to the loan as well as all questions relating
to the validity and priority of the security for the
loan shall be determined by and shall be
satisfactory to the Bank. In addition to all other
documents which may be required by any provision of
this commitment and any and all documents which may
be required by the Bank, the following documents
shall be required: Promissory Note, Corporate
Resolutions, and such other documents as the Bank
may require and in a form and substance satisfactory
to the Bank.
LOAN AGREEMENT: The Loan Agreement shall include such terms and
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conditions as Bank's counsel deem appropriate.
GENERAL CONDITIONS: 1) Borrower shall pay reasonable costs and
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expenses in connection with this commitment, whether
or not the loan is closed including all legal fees
and recording costs of both attorneys for the
Borrower and the Bank.
2) Approval is subject to receipt of preliminary
approval of a state bank charter by the South
Carolina Banking Commission.
If the above-mentioned conditions are acceptable for this loan, please sign in
the appropriate space and return to the undersigned. Unless accepted by March
31, 2003 this commitment will be null and void. If this commitment is accepted,
it will remain open for ninety (90) days after the acceptance date, at which
time it will be null and void if the loan is not closed.
Very truly yours,
/s/ Xxx Xxxxxxx
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Xxx Xxxxxxx
First Vice President
Accepted this 27th day of February, 2003.
BORROWER: Tidelands Bancshares, Inc.
By: /s/ Xxxxxx X. Xxxxxx, Xx.
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Xx. Xxxxxx X. Xxxxxx, Xx.
President & C.E.O.
GUARANTORS:
/s/ Xxxx X. Xxxxx
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Xxxxx X. Xxxxxxxx Xxxx X. Xxxxx
/s/ Xxxxxxx X. Xxxxxxx /s/ Xxxx X. Xxxxxxxx
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Xxxxxxx X. Xxxxxxx Xxxx X. Xxxxxxxx
/s/ Xxxxxxx X. Xxxxxxx /s/ Xxxxxx X. Xxxxx
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Xxxxxxx X. Xxxxxxx Xxxxxx X. Xxxxx
/s/ Xxxxx X. Xxxxxxxx /s/ Xxxxxxxxx X. Xxxxxx
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Xxxxx X. Xxxxxxxx Xxxxxxxxx X. Xxxxxx
/s/ Xxxx X. Xxxxxx, Xx.
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Xxxxxx X. Xxxxxxx, Xx. Xxxx X. Xxxxxx, Xx.
/s/ Xxxx X. Xxxxxx /s/ Xxxxxx X. Xxxxxx, Xx.
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Xxxx X. Xxxxxx Xxxxxx X. Coffee, Jr.
/s/ Xxxxxx Xxxxxxxx /s/ Xxxxx X. Xxxxxxxx
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Xxxxxx Xxxxxxxx Xxxxx X. Xxxxxxxx
