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HomeMy WebLinkAboutC-2528a00 - 4'n arcadia redevelopment agency 240 west huntington drive • p.o. box 60021 • arcadia, ca 91066 -6021 • 626 -574 -5408 • fax 626 -447 -3309 UNSECURED PROMISSORY NOTE BETWEEN CITY OF ARCADIA AND CITY OF ARCADIA REDEVELOPMENT AGENCY Dated: July 1, 2010 Principal Amount: Three Million Five Hundred Thousand Dollars ($3,500,000) For value received, the CITY OF ARCADIA REDEVELOPMENT AGENCY, a public body, corporate and politic ( "AGENCY "), promises to pay to the City of Arcadia ( "CITY "), on demand by the CITY, the total unpaid principal amount advanced by the CITY to and for the benefit of the AGENCY, together with all interest due and owning thereon. All payments made on account of principal shall be recorded by the holder of this Note on the reverse side of this Note or on an attachment hereto. 2. The advance shall be utilized for capital construction costs and other lawful redevelopment purposes. The original principal amount of the note is Three Million Five Hundred Thousand Dollars ($3,500,000). 4. The principal amount under this Note shall bear eight percent (8 %) interest, compounded annually, from the date set forth above until paid in full. 5. The pledge and obligation of the AGENCY to repay to the CITY the principal amount and any and all interest thereon is and shall be subordinate to the contractual obligations of the AGENCY and/or the AGENCY'S pledge or obligation to repay principal and/or interest for the purposes of any and all tax allocation bonds and/or other financings issued or undertaken by the AGENCY, all in existence as of the date of this Unsecured Promissory Note or thereafter, without the need for further action by the AGENCY or the CITY for such purpose. IN WITNESS WHEREOF, the AGENCY has caused this Note to be executed by its Executive Director duly authorized and directed by motion of its Board of Directors duly passed and adopted by a majority of said Board at a meeting thereof duly called, noticed and held. CITY OF ARCADIA REDEVELOPMENT AGENCY By � ?�. Donald Penman Executive Director ATTEST: CA U1i e Age cy Secretary Page 1 of 1