Exhibit 10.19


 


	COMMERCIAL PROMISSORY NOTE 	PrimeSouth Bank
	 	375 W Cherry St
	 	Jesup, Georgia 31545-1440
	 	(912)427-6670



 


	LOAN NUMBER	 	NOTE DATE	 	 	PRINCIPAL AMOUNT	 	MATURITY DATE	 
	3244626	 	 	July 22, 2022	 	$	1,600,000.00	 	 	July 22, 2043	 





 


LOAN PURPOSE: Reimburse for Purchase Mobile Home Park and 27 Mobile Homes






	


 


BORROWER INFORMATION


Spaulding MHP, LLC 

3840 Highway 17S


Brunswick, GA 31523


 






 


NOTE. This Commercial Promissory
Note will be referred to in this document as the “Note.”


 


LENDER. “Lender” means
PrimeSouth Bank whose address is 375 W Cherry St, Jesup, Georgia 31545-1440, its successors and assigns.


 


BORROWER. “Borrower”
means each person or legal entity identified above in the BORROWER INFORMATION section who signs this Note.


 


PROMISE TO PAY. For value
received, receipt of which is hereby acknowledged, on or before the Maturity Date, the Borrower promises to pay the principal amount of
One Million Six Hundred Thousand and 00/100 Dollars ($1,600,000.00) and all interest on the outstanding principal balance and any other
charges, including service charges, to the order of Lender at its office at the address noted above or at such other place as Lender may
designate in writing. The Borrower will make all payments in lawful money of the United States of America.


 


PAYMENT SCHEDULE. This Note
will be paid according to the following schedule: 12 consecutive payments of interest only beginning on August 22, 2022 and continuing
on the same day of each month thereafter. The initial payment will be in the amount of $7,922.22. This will be followed by 239 consecutive
payments of principal and interest in the amount of $11,311.97 beginning on August 22, 2023 and continuing on the same day of each month
thereafter. This will be followed by 1 payment of principal and interest in the amount of $11,310.65 on July 22, 2043. The unpaid principal
balance of this Note, together with all accrued interest and charges owing in connection therewith, shall be due and payable on the Maturity
Date. All payments received by the Lender from the Borrower for application to this Note may be applied to the Borrower’s obligations
under this Note in such order as determined by the Lender.


 


INTEREST RATE AND SCHEDULED PAYMENT
CHANGES. Interest will begin to accrue on July 12, 2022. The initial variable interest rate on this Note will be 5.750% per annum.
This interest rate may change on July 23, 2022, and every Day thereafter. Each date on which the interest rate may change is called the
“Change Date.” Beginning with the first Change Date, Lender will calculate the new interest rate based on the base rate on corporate
loans posted by at least 70% of the 10 largest U.S. banks known as the Wall Street Journal U.S. Prime Rate in effect on the Change Date
(the “Index”) plus 1.000 percentage points (the “Margin”). The interest rate will never be less than 4.750%.


 


If the Index is not available at
the time of the Change Date, Lender will choose a new Index which is based on comparable information. The Index is used solely to establish
a base from which the actual rate of interest payable under the Note will be calculated, and is not a reference to any actual rate of
interest charged by any lender to any particular borrower.


 


Nothing contained herein shall be
construed as to require the Borrower to pay interest at a greater rate than the maximum allowed by law. If, however, from any circumstances,
Borrower pays interest at a greater rate than the maximum allowed by law, the obligation to be fulfilled will be reduced to an amount
computed at the highest rate of interest permissible under applicable law and if, for any reason whatsoever, Lender ever receives interest
in an amount which would be deemed unlawful under applicable law, such interest shall be automatically applied to amounts owed, in Lender’s
sole discretion, or as otherwise allowed by applicable law. An increase in the interest rate will result in a higher payment amount. Interest
on this Note is calculated on an Actual/360 day basis. This calculation method results in a higher effective interest rate than
the numeric interest rate stated in this Note. The unpaid balance of this loan after the Maturity Date, whether by acceleration or otherwise,
shall be subject to a post-maturity rate of interest equal to 16.000% per annum.


 






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	Commercial Promissory Note - DL4006	Page 1 of 4	CSi



     


    

 


LATE PAYMENT CHARGE. If any
required payment is more than 10 days late, then at Lender’s option, Lender will assess a late payment charge of $25.00 or 5.000% of the
amount of the regularly scheduled payment then past due, whichever is greater, subject to a minimum charge of $25.00.


 


PREPAYMENT PENALTY. This
Note is subject to a prepayment penalty. Payment of all unpaid principal, accrued and unpaid interest and all
other fees then outstanding prior to the Maturity Date will result in a penalty that shall be equal to: The premium amount is 2.00% in
year 1; 1.50% in year 2; and 1.00% in year 3; with a minimum amount of $500.00..


 


SECURITY
TO NOTE. Security (the “Collateral”) for this Note is granted pursuant to the following security document(s):


 


		●	Assignment
                                            of Leases and Rents dated July 22, 2022 evidencing an assignment of leases and rents on the
                                            property located at 3840 US Hwy 17, Brunswick GA 31520.



 


		●	Security
                                            Instrument (Mortgage/Dee of Trust/Security Deed) in the amount of $1,600,000.00, dated July
                                            22, 2022 evidencing a lien on the property located at 3840 US Hwy 17, Brunswick GA 31520.



 


		●	Security
                                            Agreement dated July 22, 2022 evidencing security interest in 27 Various Manufacturer and
                                            Model Mobile Homes ID Number Attached as Exhibit “A”.



 


GUARANTY.
In support of this transaction, a Guaranty dated July 22, 2022 has been executed by Raymond Michael Gee; and a Guaranty dated July
22, 2022 has been executed by Manufactured Housing Properties, Inc.


 


RIGHT
OF SET-OFF. To the extent permitted by law, Borrower agrees that Lender has the right to set-off any amount due and
payable under this Note, whether matured or unmatured, against any amount owing by Lender to Borrower including any or all of
Borrower’s accounts with Lender. This shall include all accounts Borrower holds jointly with someone else and all accounts Borrower
may open in the future. Such right of set-off may be exercised by Lender against Borrower or against any assignee for the benefit of
creditors, receiver, or execution, judgment or attachment creditor of Borrower, or against anyone else claiming through or against
Borrower or such assignee for the benefit of creditors, receiver, or execution, judgment or attachment creditor, notwithstanding the
fact that such right of set-off has not been exercised by Lender prior to the making, filing or issuance or service upon Lender of,
or of notice of, assignment for the benefit of creditors, appointment or application for the appointment of a receiver, or issuance
of execution, subpoena or order or warrant. Lender will not be liable for the dishonor of any check when the dishonor occurs because
Lender set-off a debt against Borrower’s account. Borrower agrees to hold Lender harmless from any claim arising as a result of
Lender exercising Lender’s right to set-off.


 


RELATED DOCUMENTS. The words
“Related Documents” mean all promissory notes, security agreements, mortgages, deeds of trust, deeds to secure debt, business
loan agreements, construction loan agreements, resolutions, guaranties, environmental agreements, subordination agreements, assignments,
and any other documents or agreements executed in connection with the indebtedness evidenced hereby this Note whether now or hereafter
existing, including any modifications, extensions, substitutions or renewals of any of the foregoing. The Related Documents are hereby
made a part of this Note by reference thereto, with the same force and effect as if fully set forth herein.


 


DEFAULT. Upon the
occurrence of any one of the following events (each, an “Event of Default” or “default” or “event of
default”), Lender’s obligations, if any, to make any advances will, at Lender’s option, immediately terminate and Lender, at
its option, may declare all indebtedness of Borrower to Lender under this Note immediately due and payable without further notice of
any kind notwithstanding anything to the contrary in this Note or any other agreement: (a) Borrower’s failure to make any payment on
time or in the amount due; (b) any default by Borrower under the terms of this Note or any other Related Documents; (c) any default
by Borrower under the terms of any other agreement between Lender and Borrower; (d) the death, dissolution, or termination of
existence of Borrower or any guarantor; (e) Borrower is not paying Borrower’s debts as such debts become due; (f) the commencement
of any proceeding under bankruptcy or insolvency laws by or against Borrower or any guarantor or the appointment of a receiver; (g)
any default under the terms of any other indebtedness of Borrower to any other creditor; (h) any writ of attachment, garnishment,
execution, tax lien or similar instrument is issued against any collateral securing the loan, if any, or any of Borrower’s property
or any judgment is entered against Borrower or any guarantor; (i) any part of Borrower’s business is sold to or merged with any
other business, individual, or entity; (j) any representation or warranty made by Borrower to Lender in any of the Related Documents
or any financial statement delivered to Lender proves to have been false in any material respect as of the time when made or given;
(k) if any guarantor, or any other party to any Related Documents terminates, attempts to terminate or defaults under any such
Related Documents; (l) Lender has deemed itself insecure or there has been a material adverse change of condition of the financial
prospects of Borrower or any collateral securing the obligations owing to Lender by Borrower. Upon the occurrence of an event of
default, Lender may pursue any remedy available under any Related Document, at law or in equity.


 






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	Commercial Promissory Note - DL4006	Page 2 of 4	CSi



     


    

 


GENERAL WAIVERS. To the extent
permitted by law, the Borrower severally waives any required notice of presentment, demand, acceleration, intent to accelerate, protest,
and any other notice and defense due to extensions of time or other indulgence by Lender or to any substitution or release of collateral.
No failure or delay on the part of Lender, and no course of dealing between Borrower and Lender, shall operate as a waiver of such power
or right, nor shall any single or partial exercise of any power or right preclude other or further exercise thereof or the exercise of
any other power or right.


 


JOINT AND SEVERAL LIABILITY. If
permitted by law, each Borrower executing this Note is jointly and severally bound.


 


SEVERABILITY. If a court
of competent jurisdiction determines any term or provision of this Note is invalid or prohibited by applicable law, that term or provision
will be ineffective to the extent required. Any term or provision that has been determined to be invalid or prohibited will be severed
from the rest of this Note without invalidating the remainder of either the affected provision or this Note.


 


SURVIVAL. The rights and privileges
of the Lender hereunder shall inure to the benefits of its successors and assigns, and this Note shall be binding on all heirs, executors,
administrators, assigns, and successors of Borrower.


 


ASSIGNABILITY. Lender may
assign, pledge or otherwise transfer this Note or any of its rights and powers under this Note without notice, with all or any of the
obligations owing to Lender by Borrower, and in such event the assignee shall have the same rights as if originally named herein in place
of Lender. Borrower may not assign this Note or any benefit accruing to it hereunder without the express written consent of the Lender.


 


DUTY TO NOTIFY. Borrower agrees
to notify Lender if there is any change in the beneficial ownership information provided to Lender. Additionally, Borrower agrees to provide
Lender with updated beneficial ownership information in the event there is any change in the beneficial ownership information provided
to Lender.


 


ORAL AGREEMENTS DISCLAIMER. This
Note represents the final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous or subsequent
oral agreements of the parties. There are no unwritten oral agreements between the parties.


 


GOVERNING LAW. This Note is governed
by the laws of the state of Georgia except to the extent that federal law controls.


 


HEADING AND GENDER. The headings
preceding text in this Note are for general convenience in identifying subject matter, but have no limiting impact on the text which follows
any particular heading. All words used in this Note shall be construed to be of such gender or number as the circumstances require.


 


ATTORNEYS’ FEES AND OTHER COSTS.
If legal proceedings are instituted to enforce the terms of this Note, Borrower agrees to pay all costs of the Lender in connection
therewith, including reasonable attorneys’ fees. Attorney fees shall not exceed 15 percent of the principal and interest owing.


 


By signing this Note, Borrower acknowledges
reading, understanding, and agreeing to all its provisions and receipt hereof.


 


Spaulding MHP, LLC


 





	By: Manufactured Housing Properties, Inc, Member	 
	 	 	 
	/s/ Jay Wardlaw III	7/22/2022	 
	By:	 Jay Wardlaw III	Date 	 
	Its: President	 	 
	 	 	 
	LENDER: PrimeSouth Bank	 	 
	 	 	 
	/s/ Rene Hutto	7/22/2022	 
	By:	 Rene Hutto	Date	 
	Its: VP, Loan Officer	 	 



 






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	Commercial Promissory Note - DL4006	Page 3 of 4	CSi



     


    

 


 






    	© 2004-2020 Compliance Systems, Inc. bc30625e-4016be23 - 2019.302.1.5	www.compliancesystems.com
	Commercial Promissory Note - DL4006	Page 4 of 4	CSi