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PROMISSORY NOTE
$10,000
Principal Amount June 18, 2002
Redlands, California
Close of Escrow August 21, 2002
THIS NOTE REQUIRES A BALLOON PAYMENT AT MATURITY
FOR VALUE RECEIVED, The Redlands Conservancy, whose address is P.O. Box 855,
Redlands, California 92373, ("Borrower") hereby promises to pay to the order of the CITY OF
REDLANDS,whose address is 35 Cajon Street,Redlands,California,92373("Lender")at Lender's
address or at such other place as the holder thereof may from time to time designate, the principal
amount of Ten Thousand Dollars($10,000.00)together with interest as set forth below on the unpaid
principal amount from time to time outstanding from the date hereof, plus any costs of suit and
attorney's fees incurred by the holder hereof in collecting any amounts due under this Note.
INTEREST
This Note shall bear, and Borrower promises to pay, interest (computed on the basis of a
three hundred sixty five(365)day year but with any interest payment for a partial month based upon
a thirty(30)day month)on the unpaid principal amount from time to time outstanding commencing
on the date that is the date endorsed hereon by Escrow Holder (the "Commencement Date") until
that date when the Note is paid in full at the annual rate of four and seventy three hundredths percent
(4.73%).
INSTALLMENTS OF INTEREST AND PRINCIPAL
The principal amount and accrued interest thereon under this Note shall be due and payable
as follows:
(a) The outstanding principal balance of the Note and any and all accrued and unpaid
interest thereon shall be due and payable on the date which is twelve (12) months from the
Commencement Date.
PREPAYMENT
Borrower may prepay all or any portion of this Note without penalty at any time. All
payments on this Note, including but not limited to prepayments, shall be credited first to accrued
and unpaid interest and then to the unpaid principal amount. Except as set forth herein, Borrower,
endorsers, and guarantors of this Note hereby severally waive presentment for payment, demand,
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notice of non-payment protest.
EVENTS OF DEFAULT
An "event of default" shall occur if any installment of principal, interest, or both, on the
obligation represented by this Note shall not be paid when and as the same shall become due and
payable, and such default shall have continued for a period of ten (10) days after written notice is
delivered or mailed to Borrower at the last address of Borrower furnished to the holder of this Note
in writing at the place for payment; provided,however,such notice of default need not be given and
an event of default shall exist without any requirement for notice five(5)days after a failure to make
when due any payment as aforesaid if no such address is furnished.
DUE ON SALE PROVISION
Should Borrower agree to or actually sell, convey, transfer or otherwise dispose of the
property located at 1247 Alta Street, Redlands, or any part of it, or any interest in it, without first
obtaining the written consent of the Lender of this Note, then all obligations secured by this Note
maybe declared due and payable,at the option of the Lender. Consent to one transaction of this type
shall not constitute a waiver of the right to require consent to future or successive transactions.
REMEDIES
Upon the occurrence of an "event of default" as defined above, the whole of the unpaid
principal amount of this Note and all accrued and unpaid interest shall be immediately due and
payable without further notice to or demand of the Borrower. No remedy herein conferred upon
Lender or any holder of this Note is intended to be exclusive of any other remedy, and each and
every such remedy given hereunder provided in any mortgage, deed of trust or agreement securing
or relating to Borrower's obligations hereunder or are hereafter existing at law or in equity,by statute
or otherwise.
LATE CHARGE
Borrower acknowledges that in the event any payment of any amount required hereby is note
made when due, the Lender will incur additional costs and expenses. The exact amount of these
additional costs and expenses (which include, but are not limited to, processing and accounting
charges as well as loss of use of money due) is difficult and impractical to assess. Therefore,
Borrower acknowledges that the sum of ten percent (10%) of the amount overdue is, under the
circumstances existing at the time this Note is made, a reasonable late charge, and Borrower
promises to pay such late charge when due. Said late charge shall become immediately due ten(10)
days after the giving of notice of such late payment.
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GENERAL
No course of dealing between Borrower and Lender or any holder of this Note or any delay
on the part of Lender or any holder of this Note in exercising any rights hereunder shall operate as
a waiver of any right of Lender or any holder of this Note.
This Note shall be construed and enforced in accordance with, and governed by, the laws
of the State of California.
Should there be an event of default under this Note and should this Note be placed in the
hands of attorneys for collection,Borrower shall pay,in addition to the unpaid principal amount and
interest due and payable hereunder,reasonable attorneys'fees,together with all reasonable costs and
expenses of any such action or proceeding,whether or not litigation has commenced.
Borrower shall have no personal liability for any deficiency on this note,and the onlyremedy
available to Lender shall be foreclosure pursuant to law as provided in the deed of trust securing this
note.
BORROWER:
V,"C�
President, The Redlands Conservancy Date
ATTEST:
Secretary, The Redlands Conservancy
minin Note is endorsed
o accrue from
ENDORSEMENT BY ESCROW HOLDER: Angu-,r 21 - 2002
i n accordance wfth instruefions On Me
in Escrow{4o, 19568-JB 0f
GUARDIAN ESCROW, INC., REDLANDS, CA
Date
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