Tigard - Canterbury Surplus Property Promissory Note PROMISSORY NOTE
Canterbury Surplus Property
$605,000.00 Tigard, Oregon
A..P l� , 2009
For value received,the City of Tigard ("Maker"), hereby unconditionally promises to pay
to the order of the City of Tigard Water Capital Improvement Fund ("Holder"), the principal
amount of Six Hundred Five Thousand and No/100s Dollars ($605,000.00), with interest as
provided below. Payments under this Note shall be made to Holder, at: The City of Tigard,
13125 SW Hall Blvd., Tigard Oregon, 97223 or as such other place as Holder may designate
from time to time.
1. Interest. Following the initial payment, the Maker promises to pay annual interest on the
outstanding principal balance of this Note at the Local Government Investment Pool rate
as posted at http://www.ost.state.or.us/Divisions/Finance/lgip/OSTFRateChanges.htm.
Interest payments will added to the Periodic Payments and paid on the same schedule as
Periodic Payments as outlined in Section 2.2.
2. Payment.
2.1 Maturity. All principal and accrued interest, together with any sums due to
Holder under the terms of this Note, shall be due and payable on June 30, 2013 ("Maturity
Date").
2.2 Periodic Payments. The Payments of principal will be made in five annual
installments of$121,000 and are due no later than June 30 each year, beginning June 30, 2009,
with the final payment due no later than June 30, 2013.
2.3 Prepayment. This Note may be prepaid in whole or in part without fee or
penalty at any time.
3. Default. Maker shall be in default under this Note if Maker fails to pay any amount due
from it within sixty (60) days following written notice of such failure.
4. Miscellaneous.
4.1 Governing Law; Venue. This Note shall be governed by and construed in
accordance with the laws of the State of Oregon. The undersigned agrees that in any suit or
action hereon venue will lie in the County of Washington and State of Oregon, without waiver,
however, of Holder's right to lay venue in any other county or state appropriate for the collection
of this Note.
5. Attorneys Fees. If a suit or action is filed to enforce any of the terms of this Note, the
prevailing party shall be entitled to recover from the other party, in addition to costs and
disbursements provided by statutes, any sum which a court, including any appellate court, may
adjudge reasonable as attorney's fees.
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6. Business Purpose; Use of Loan Proceeds. By its execution of the Note, Maker warrants
and represents to Holder that no Note proceeds will be used for personal, family or household
purposes.
7. Notices. Any notices required or permitted to be given under the terms of this Note, or by
law, shall be in writing and may be given by personal delivery, facsimile, or certified mail, return
receipt requested, directed to the parties at the following addresses, or such other address as any
party may designate in writing prior to the time of the giving of such notice, or in any other
manner authorized by law:
Holder: City of Tigard
Finance and Information Technology Director
13125 SW Hall Blvd.
Tigard, OR 97223
Fax: 503-684-7297
Maker: City of Tigard
Finance and Information Technology Director
13125 SW Hall Blvd.
Tigard, OR 97223
Fax: 503-684-7297
With copy to: Jordan Schrader Ramis PC
2 Centerpointe Drive, 6th Floor
Lake Oswego, OR 97035
Fax: 503-598-7373
Any notice given shall be effective when actually received or, if given by certified mail, forty
eight(48)hours after the deposit of such notice in the United States Mail with postage prepaid.
EXECUTED as of [D , 2009 CITY OF TIGARD
By:
Craig Pross ', City Manager
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