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HomeMy WebLinkAboutLine of Credit - $2,500,000 Kokomo Central Office 501 West Lincoln Road F 1 R S T Kokomo,Indiana 46902-5391 (765)453-9100 FARM F R S Fax:(765)453-9171 BAN K&TRUST May 16,2011 Carmel Redevelopment Commission Mr.James Rush,Regional President United Fidelity Bank Mr. Karl Haas, Wallack, Somers and Haas, P.C. One Indiana Square Suite 1500 Indianapolis,IN 46204 Re: Line of Credit Proposal Dear Sirs: I am pleased to notify you that First Farmers Bank&Trust(FFBT)has approved financing the line of credit for the Carmel Redevelopment Commission,according to the following terms and conditions: • Lender: First Farmers Bank&Trust • Borrower: Carmel Redevelopment Commission • Purpose: Backup liquidity for short term cash flow needs • Loan Amount: $2,500,000.00 • Term: 1 year revolving line of credit, renewable annually upon Bank's receipt,review and acceptance of Borrower's business financial statements and any other documentation deemed necessary by the Bank to adequately assess Borrower's financial position. • Rate: National Prime+ 1.00%, with a floor of 5.00%,daily adjustable. • Payment: Monthly payments of interest will be made by Borrower to Bank until maturity of the loan. • Collateral: Assignment, grant and/or pledge to First Farmers of all of the Tax Increment Fund(TIF)collections of the City of Carmel and/or Carmel Redevelopment Commission.. www.ffbt.com Kokomo Central Office 501 West Lincoln Road Kokomo,Indiana 46902-5391 (765)453-9100 Fax:(765)453-9171 First Farmers' collateral will give it parity with all other similar bank loans and/or bonds that have been arranged for the benefit of the Carmel Redevelopment Commission and related entities. • Guaranty: Not applicable • Fee: Fees are as follows: a. 1 point underwriting fee($25,000) b. Non Usage Fee: 3/8 of One Percent(00.375%), payable quarterly, on any unused portion of the line of credit. • Prepayment Penalty: Not applicable • Contingencies: Closing to be held by, and loan and collateral documentation to be prepared by, outside counsel, selected by Borrower. The Bank's attorney's fees, and other costs of closing,will be at the expense of,and paid by, the Borrower. The Carmel Redevelopment Commission also commits to pay the Bank's attorney's fee and other closing costs, if this proposal is accepted by Borrower,but the loan subsequently does not close. • Expiration: This letter must be accepted by Borrower on or before May 27, 2011 • Confidentiality: This letter is for the sole use of the Carmel Redevelopment Commission,concerning the aforementioned loan to be extended by First Farmers Bank&Trust,and is not to be distributed, or made available to,third parties, other than directors, officers, employees, agents,consultants,or representatives who have a need to know such information in connection with this loan. This letter is not a commitment to lend. The Bank's obligation to provide the financing is subject to further negotiations and agreement by the Bank with the Carmel Redevelopment Commission,on all material terms of the proposal,and subject to the completion of loan documents acceptable to the Bank and its counsel. This letter is also not assignable to any third parties,and it supersedes all other discussions and agreements between the Borrower and the Bank. Kokomo Central Office 501 Wcst Lincoln Road Kokomo,Indiana 46902-5391 (765)453-9100 Fax:(765)453-9171 If the above terms and conditions are acceptable to the Carmel Redevelopment Commission, please acknowledge their agreement by signing this proposal below. If you have any questions, please contact us. Sincerely, Lut,„6, 7YI �P Cary Mawbey Senior Commercial Lender Vice President First Farmers Bank&Trust Accepted this day of May, 2011, By (Sign) (Print Name) (Print Title) of the Carmel Redevelopment Commission