Portuguese Bend Club Homeowners Association - Amend Construction Loan , a
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1114 411/41)
AMENDMENT TO CONSTRUCTION LOAN AGREEMENT
This AMENDMENT TO CONSTRUCTION LOAN AGREEMENT ("Amendment") is
made as of July 1, 2001 by and between the Portuguese Bend Club Homeowners Association, a
California corporation ("Borrower") and the Rancho Palos Verdes Redevelopment Agency, a
body public, corporate and politic ("Agency")with respect to the facts set forth below.
RECITALS
A. Borrower 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 Borrower
("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. Terms with initial capitalized
letters used in this Amendment without definition have the meanings given them in
the Original Loan Agreement.
B. Borrower's indebtedness under the Loan is evidenced by the Note. The
repayment of such indebtedness and performance of other certain Loan obligations of
Borrower are secured by the Deed of Trust, a Security Agreement and an Assignment
of Contracts and Plans and Specifications.
C. The Improvements to be constructed pursuant to the Original Loan
Agreement were, upon issuance of the Loan, and are, as of the date of this
Amendment, recognized as being of interest and benefit to the public of the City of
Rancho Palos Verdes in that the Improvements will aid in the mitigation of local land
slides. In recognition of such public benefit, Agency accepted an assignment and
delegation of Bank's rights and obligations with respect to the Loan concurrently with
the Bank's issuance of the Loan.
D. Agency and Borrower desire to amend the Original Loan Agreement in
order to extend the time for Borrower's completion of the Improvements and to
restructure Borrower's Loan repayment obligations.
NOW, THEREFORE, in consideration of the mutual agreements contained herein, and
for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Borrower and Agency hereby amend the Original Loan Agreement as follows:
Repayment of Note. The Note shall be payable in one hundred eighty (180) equal monthly
principal installments commencing on July 1, 2001; provided, however, that because the Loan
will not be fully disbursed prior to July 1, 2001, the amount of the equal monthly installments of
PORTUGUESE BEND CLUB HON
RANCHO PALOS VERDES REDEVELOPMENT AGENCY
AMENDMENT TO CONSTRUCTION LOAN AGREEMENT
R6876\0001\664706.1 1
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principal shall be recalculated within ten (10) business days after each disbursement of the
undisbursed balance of the Loan funds to Borrower, such that after the recalculation the equal
monthly installments payable are sufficient to repay the then outstanding balance of disbursed
principal over the then remainder of the one hundred eighty (180) month period. Likewise, such
installments shall be recalculated after any prepayment of the Loan by Borrower in order to
amortize the reduced outstanding balance of disbursed principal over the remainder of such one
hundred eighty (180) calendar month period. The Note will be amended accordingly to more
particularly set forth the modified repayment structure set forth herein and such amendment will
be executed by Borrower and Agency concurrently with the execution and delivery of this
Amendment.
Completion of Improvements. The date "September 1, 2000" in the third sentence of Paragraph
8 of the Original Loan Agreement is hereby deleted and replaced with the date "July 1, 2002".
The phrase "3 years" in the third sentence of Paragraph 8 of the Original Loan Agreement is
hereby deleted and replaced with the phrase"45 months".
Effect. Except as amended by this Amendment, the terms of the Original Loan Agreement shall
remain in full force and effect. In the event of a conflict between the terms of this Amendment
and the terms of the Original Loan Agreement or any of the other Loan Documents, the terms of
this Amendment shall govern.
Further Assurances. Borrower and Agency 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.
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PORTUGUESE BEND CLUB HON
RANCHO PALOS VERDES REDEVELOPMENT AGENCY
AMENDMENT TO CONSTRUCTION LOAN AGREEMENT
R6876\0001\664706 1 2
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Counterparts. This Amendment may be executed in multiple counterparts, each of which, taken
together, shall constitute one in the same Amendment.
IN WITNESS WHEREOF, Borrower and Agency 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: 9e2ik. IAA. By:
Name: Name: ��
Title: fres,t..—eoul, Title: � / �.
By:
Name:
Title:
ATTEST:
e° 1______c.
Name:
Title: City Clerk
PORTUGUESE BEND CLUB HON
RANCHO PALOS VERDES REDEVELOPMENT AGENCY
AMENDMENT TO CONSTRUCTION LOAN AGREEMENT
R6876\0001\664706.1 3