Portuguese Bend Club Homeowners Association - Amend Promissory Note .4111 114
AMENDMENT TO PROMISSORY NOTE SECURED BY DEED OF TRUST
This AMENDMENT TO PROMISSORY NOTE SECURED BY DEED OF
TRUST ("Amendment") is made and effective as of July 1, 2001, by and between the
Portuguese Bend Club Homeowners Association, a California corporation ("Maker")
and the Rancho Palos Verdes Redevelopment Agency, a public body, corporate and
politic ("Holder")with respect to the facts set forth below.
RECITALS
A. Maker and Bay Cities National Bank, a national association ("Bank")
entered into that certain Construction Loan Agreement dated as of August 3, 1999
("Original Loan Agreement") pursuant to which Bank made a loan to Maker ("Loan")
in the principal amount of Seven Hundred Fifty Thousand Dollars ($750,000.00) to fund
the construction of certain sewer system improvements at that certain residential
community commonly known as the Portuguese Bend Club, located in the City of
Rancho Palos Verdes, California.
B. Borrower's indebtedness under the Loan is evidenced by that certain
Promissory Note Secured By Deed Of Trust executed by Maker in favor of Bank, or
order, dated August 29, 1999 ("Note").
C. Concurrently with the issuance of the Loan, Bank's rights and obligations
with respect to the Loan were assigned and delegated to Holder.
D. On even date herewith, Maker and Holder amended the Original Loan
Agreement to restructure Maker's Loan repayment obligations and to effectuate certain
other changes to the Original Loan Agreement. In connection therewith, Maker and
Holder desire to amend the Note as provided below.
NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Maker and Holder hereby amend the Note as follows:
5. Repayment. The amounts advanced under the Note shall be amortized
over the one hundred eighty (180) calendar month period commencing on July 1, 2001,
and repayment thereof shall be in equal monthly principal installments payable on the
first day of each calendar month of such one hundred eighty (180) month period;
provided, however, that because the Loan will not be fully disbursed prior to July 1,
2001, the amount of the equal monthly installments of principal shall be recalculated
within ten (10) business days after each disbursement of the undisbursed balance of the
Loan funds such that the balance of the monthly principal installments payable are
sufficient to repay the outstanding balance of disbursed Loan funds over the then
remainder of the one hundred eighty (180) calendar month period. If an advance of
undisbursed Loan funds is made on or before the fifteenth (15th) calendar day of a
calendar month, then commencing on the first day of the first calendar month following
the calendar month in which such advance is made, the monthly installments shall equal
the outstanding balance of disbursed Loan funds up to and including such advance,
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divided by the remaining number of calendar months of the one hundred eighty (180)
calendar month period. If an advance of undisbursed Loan funds is made after the
fifteenth (15th) calendar day of a calendar month, then commencing on the first day of
the second calendar month following the calendar month in which such advance is made,
the monthly installments will equal the outstanding balance of disbursed Loan funds up
to and including such advance, divided by the remaining number of calendar months of
the one hundred eighty (180) calendar month period.
For example, if, as of May 15, 2001, Six Hundred Thousand Dollars
($600,000.00) of the principal had been advanced to Maker, then Maker would pay
monthly installments in the amount of, Three Thousand Three Hundred Thirty-Three
Dollars Thirty-Three Cents ($3,333.33) commencing on June 1, 2001. If, on August 15,
2001, a Fifty Thousand Dollar ($50,000.00) additional advance were made, then,
commencing on September 1, 2001, the monthly installments would equal Three
Thousand Six Hundred Fifteen Dollars Eighty-Two Cents ($3,615.82), which is derived
by adding the Fifty Thousand Dollar ($50,000.00) advance to Five Hundred Ninety
Thousand Dollars One Cent ($590,000.01) [the then unpaid amount of the original Six
Hundred Thousand Dollar ($600,000.00) balance], divided by the one hundred seventy
seven (177) remaining calendar months for amortization. However, if such August
advance were made on August 16, 2001 (or an additional advance were made on August
16, 2001), then the resulting recalculated monthly installment obligation would
commence on October 1, 2001.
In each instance that Maker prepays any portion of the outstanding balance of
disbursed Loan funds, the monthly installments of principal payable thereafter shall
likewise be recalculated (with the same time periods for recalculation and
commencement of payment of recalculated installments as provided above for advances)
such that the reduced outstanding balance of disbursed Loan funds is amortized in equal
monthly installments over the then balance of the one hundred eighty (180) calendar
month period.
6. Maturity Date. The "Maturity Date"under the Note is hereby redefined as
July 1, 2016 (the 15th anniversary of July 1, 2001).
7. Effect. No provision hereof is intended to alter Maker's right of
prepayment under the Note or the provisions of the Note regarding the accrual of interest.
Except as amended by this Amendment, the terms of the Note shall remain in full force
and effect. In the event of a conflict between the terms of this Amendment and the terms
of the Note, the terms of this Amendment shall govern.
8. Further Assurances. Maker and Holder each agree that it will take such
further actions and execute and deliver such further documents as may be reasonably
requested by the other party in order to further effectuate the intent of this Amendment or
clarify the provisions hereof.
9. Counterparts. This Amendment may be executed in multiple counterparts,
each of which, when taken together, shall constitute one and the same Amendment.
R6876\0001\664711.1
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IN WITNESS WHEREOF, Maker and Holder have executed this Amendment to
be effective as of the date first shown above.
BORROWER: AGENCY:
PORTUGUESE BEND CLUB RANCHO PALOS VERDES
HOMEOWNERS ASSOCIATION, a REDEVELOPMENT AGENCY, a public
California corporation body, corporate and politic
BY: / �, � BY:
Name:. � . �`—�� Name: �i:��
Title: r,,e��,e.sl�� Title.
By:
Name:
Title:
ATTEST:
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Name:
Title:
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