LINE OF CREDIT REVOLVING LINE OF CREDIT

Transcription

1 LINE OF CREDIT BORROWER: LENDER: ( of Company) ("Lender") AMOUNT: $ 125, REVOLVING LINE OF CREDIT TERM: One year. The note will have a maturity of twelve (12) months from the date of closing of the loan. At the discretion of the Bank the line may be renewed pending satisfactory review by the Bank of the Borrower and the Guarantors. INTEREST RATE: PURPOSE: FEE: SECURITY: GUARANTORS: To vary with the Bank prime rate plus 1 ½%. The interest rate would adjust as of the date of each change in prime. Interest will be paid on a monthly basis. Working capital. $ plus out of pocket expenses. First Security Interest on Business Assets now owned and hereafter acquired. Unlimited guaranty of and. First Security Interest on Equipment owned by, now owned and hereafter acquired, of which the Bank requires a list accompanied with Serial Numbers. Unlimited guaranty of and. Unlimited guaranty of and.

2 SUBORDINATION: COVENANTS: Notes Payable to in the amount of $180,00000 is to subordinated to the Bank. Borrow and Guarantors Agree: (1) to provide (bank) with quarterly financial statements within 45 days after the close of each fiscal quarter. (2) to provide (bank) with fiscal yearend federal tax returns within 120 days after the close of each fiscal year compiled by a firm of independent certified public accountants reasonably acceptable to (bank). (3) not to merge with, acquire or make any investment in any other operating business or company or in any joint venture or partnership without the written consent of (bank). (4) to maintain all of Borrower's depository accounts with the Bank, both Personal and Business. (5) that all interest and principal payments will be automatically deducted from business checking account. (6) that no material adverse change has occurred or will occur prior to closing that (bank) has not been made aware of. (7) not make additional loans or advances or guarantee notes of others. (8) not merge, dissolve or dispose of assets except in the normal course of business.

3 (9) not to pledge or encumber any assets except to (bank). (10) the Bank will be named as loss payee on business assets. BORROWER'S AUTHORITY: DOCUMENTATION: TERMINATION: MISCELLANEOUS: Borrower shall provide all appropriate documents and legal instruments including but not limited to: Borrower's Articles of Incorporation, Borrowing Resolution, State of Ohio Certificate of Good Standing. Loan shall be evidenced by a Promissory Note signed by the Borrower. The note and guaranty will contain a cognovit provision. Borrower shall execute all appropriate documentation deemed necessary to (bank) to consummate the loan. Said documents will be in form prepared by and satisfactory to (bank). The Bank reserves the right to terminate its obligation hereunder at any time due to any of the following circumstances: (a) failure of the Borrower to comply with any of the provisions or conditions hereof within the specified time; or, (b) any material misrepresentation made by the Borrower or Guarantors to (bank) in any of the data furnished in conjunction with the loan application or in compliance with any provisions of this letter; (c) if, at the time of closing, there shall have occurred in the opinion of (bank), a material adverse change in the financial condition or operations of Borrower. In addition to the provisions set forth above, the documentation for the proposed financing shall contain additional terms and conditions as shall be agreed upon by the parties. Borrower and

4 Guarantors shall duly execute and deliver such instruments, documents, certificates, opinions assurances, and do other such acts and things as (bank) may reasonably request, to effect the purpose of the transaction described in this letter. All proceeds, agreements, instruments, documents, and other matters relating to the making of the loan, and all other transactions herein contemplated, shall be satisfactory to (bank) and its legal counsel. This Commitment Letter shall constitute the entire agreement of the parties and no oral or verbal or implied agreement or understanding shall cancel or vary the terms of this commitment. This commitment will become effective only upon (bank) receipt of the original commitment letter executed by all parties together with a check for $500.00, which represents preliminary fees for loan document. Time shall be of the essence in this commitment. In the event the executed original commitment letter has not been received by (bank) on or before,, 20, this commitment shall be deemed to have lapsed and (bank) shall bear no further obligation under this commitment. No waiver of any of the term, conditions and provision of this commitment and no waiver of any default or failure to comply with this commitment shall be effective unless made by (bank) in writing. The undersigned hereby accepts the foregoing commitment and agrees to be fully bound by the terms and conditions thereof this day of, 20. BORROWER:

5 GUARANTORS: