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Business Loan Agreement B/W Capital National Bank

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BUSINESS LOAN AGREEMENT


NAME(S)/ADDRESS(ES) OF BORROWER(S) ("Borrower, I, My or Me")


MAXCO, INC.
1118 CENTENNIAL WAY
LANSING MI 48917


NAME/ADDRESS OF LENDER (CREDITOR) ("Lender, You, or Your")


CAPITOL NATIONAL BANK
200 WASHINGTON SQUARE NORTH
LANSING, MI 48933


TYPE OF BUSINESS


METALS SERVICE CENTERS /X/ CORPORATION / / PARTNERSHIP / / PROPRIETORSHIP
LIMITED LIABILITY LIMITED LIABILITY
/ / COMPANY / / PARTNERSHIP


AMOUNT AND TERM OF LOAN(S) OR LINE(S) OF CREDIT


AMOUNT $2,700,000.00 TWO MILLION SEVEN HUNDRED THOUSAND AND NO/100


TRANSACTION DATE MATURITY DATE ACCOUNT NUMBER /X/ LOAN / / LINE OF CREDIT 5/28/2004


INTEREST RATE
WSJP + 1.0%


PURPOSE OF CREDIT


PAYOFF NATIONAL CITY AND COMERICA BANK.


The undersigned Borrower, in consideration of the Lender granting the loan(s) or line(s) of credit upon the terms described above hereby agrees, warrants and represents as follows:


A. PREPAYMENT. Borrower agrees that in the event of prepayment, the Borrower will pay a prepayment penalty on the following basis:


B. ACCOUNTING AND COMPENSATING BALANCES. Borrower agrees to maintain the following accounts with Lender:


BORROWER AGREES TO MAINTAIN A DEPOSITORY RELATIONSHIP WITH CAPITOL NATIONAL BANK THROUGHOUT LIFE OF THE LOAN.


1. % of the balance of the loan or used portion of the line of credit
plus
2. % of any unused portion of the line of credit, if any.


C. FINANCIAL REQUIREMENTS. Provisions 1 and 2 below shall be in accordance with generally accepted accounting principles.


1. Borrower will maintain a net worth of at least $
2. Borrower will maintain current assets in excess of current liabilities
in a ratio of at least to one.
3. Borrower will not make (without prior written consent of Lender)
investments in fixed assets in excess of: $
4. Borrower will enter into no lease (without prior written consent of
Lender) with an aggregate rental of more than: $
5. Borrower will cause its following named creditor(s) to subordinate
its debt to the debt of the Borrower to Lender in a form prescribed by
Lender.


NAME OF CREDITOR DOLLAR AMOUNT SUBORDINATED


6. Borrower will submit financial data as follows:


QUARTERLY SEC 10Q & ANNUAL SEC 10K STATEMENTS ON BORROWER. ANNUAL PERSONAL FINANCIAL STATEMENTS ON GUARANTOR. IRS TAX RETURNS ON BOTH BORROWER & GUARANTOR.


D. SECURITY. To secure its loan or line of credit, the Borrower has or will deliver possession of the following collateral or will execute the following instruments of pledge, mortgage, assignment, guarantee, or security agreement and will comply with all of the provisions of those documents:


DEMAND NOTE BETWEEN ATMOSPHERE ANNEALING INC. AND MAXCO, INC. DATED JANUARY 3, 1997. ALL ASSETS. 1,785,838 SHARES OF INTERGRAL VISION, INC. STOCK & 454,767 SHARES OF MEDAR, INC. NKA INTEGRAL VISION, INC. STOCK. REFER TO SECURITY AGREEMENTS DATED 05/28/04. ***


E. GUARANTORS. To induce the Lender to extend and continue to extend financial accommodations to Borrower, the following named individual(s) or entity(ies) have agreed to guarantee repayment of any Indebtedness of Borrower:


The Borrower(s) acknowledge(s) having read and understood the terms listed on page one as well as on pages two and three hereof and agrees to be bound by and to comply with them:


By X /s/ Vincent Shunsky 5/28/04 By X
------------------------------------ ----------------------------
Date Date
VINCENT SHUNSKY Its VICE PRESIDENT OF FINANCE Its
& TREASURER


By X By X
------------------------------------ ----------------------------
Date Date Its Its


GENERAL AGREEMENTS


1. The business of the Borrower shall be continued in its present form and at the address as shown on page one, and the Borrower will not enter into changes of its partnership agreement, limited liability company articles of organization, or, if a corporation, enter into a consolidation, merger, or permit a majority of its common stock to be transferred, or grant options which could result in such actions unless the Lender is first notified and consents in writing to any such change.


2. The proceeds of the loan or line of credit will be used lawfully and exclusively for the benefit of the Borrower's business and for the purpose set forth on page one.


3. All collateral security given to secure the loan or line of credit shall also secure all of the other obligations of the Borrower to the Lender of whatsoever nature, past, present, or future. All collateral security given for other obligations of the Borrower to the Lender, together with any debt from Lender to Borrower, (including, but not limited to checking, deposit accounts, certificates of deposit, savings accounts, and the like) shall, likewise, secure the loan or line of credit described on page one. It is the expressed intent to cross-collateralize all of the borrowings or other indebtedness of Borrower to the Lender. The breach of the terms of any
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