Small Business Forgivable Loan Agreement (Page 7 of 7) in pdf

EXHIBIT C – FORM OF PROMISSORY NOTE

MAXIMUM PRINCIPAL AMOUNT: $__________________

Interest Rate: 0%

Dated: ______________, 20__

_______________________ (the “Company”) and _________________________ (the “Individual(s)” and

together with the Company, the “Borrower”) for value received, promises to pay, to the City of Muscatine, Iowa

(the “City”), its successors or assigns, the principal sum of ______________________ ($____________), in lawful

money of the United States of America, in five equal annual installments on ______________________ in each of

the years 20__ to 20__, inclusive.

The City has made a forgivable loan to the Borrower the principal amount of $_____________ (the

“Forgivable Loan”) under this Promissory Note (the “Note”) and under a certain Small Business Forgivable Loan

Agreement (the “Agreement”) between the City and the Borrower dated ___________, 20__, and reference is

hereby made to the Agreement for a more complete description of the rights and obligations of the parties.

The Forgivable Loan shall be forgiven by the City in accordance with the terms and schedule set forth in

the Agreement.

Payment of principal of the Forgivable Loan shall be made to the City of Muscatine at 215 Sycamore,

Muscatine, Iowa 52761-3840 at 4:00 p.m. on __________________ in each of the years 20__ to 20__, unless sooner

forgiven in accordance with the Agreement.

The Borrower reserves the right to prepay principal of this Note, in whole or in part, without penalty, at any

time prior to maturity.

In the event of a default under the Agreement which has not been cured in accordance with the terms of the

Agreement, including the failure to make payments of principal as they come due under the terms of the Agreement,

the Borrower agrees to pay all costs and expenses of collection, including reasonable attorney’s fees. The Borrower

waives demand, presentment, notice of non-payment, protest, notice of protest and notice of dishonor.

This Note is secured, and its maturity is subject to acceleration in each case upon the terms provided in the

Agreement.

The validity, construction and enforceability of this Note shall be governed by the internal laws of the State

of Iowa without giving effect to the conflict of laws principles thereof.

____________________________________,

BORROWER

By: ___________________________________

Title:_______________________________

____________________________________,

INDIVIDUAL

By: ___________________________________

Title:_______________________________

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Small Business Forgivable Loan Agreement Page 7