Exhibit 10.6
THIS INSTRUMENT WAS PREPARED BY:
Lindquist & Vennum P.L.L.P. (LLK)
4200 IDS Center
80 South Eighth Street
Minneapolis, MN 55402
(612) 371-3211
FUTURE ADVANCE MORTGAGE
AND
SECURITY AGREEMENT
AND
FIXTURE FINANCING STATEMENT
AND
ASSIGNMENT OF LEASES AND RENTS
MORTGAGE - COLLATERAL REAL ESTATE MORTGAGE
THIS INDENTURE (the "Mortgage"), made and given this [10th] day of August, 2007,
by Great Plains Ethanol, LLC, a South Dakota limited liability company
("Borrower"), whose address is 27716 462nd Avenue, Chancellor, South Dakota
57015 to AgCountry Farm Credit Services, FLCA ("Lender"), whose address is 1900
44th Street South, Fargo, North Dakota 58108.
PRELIMINARY RECITALS:
A.
THE BORROWER IS THE OWNER IN FEE SIMPLE OF CERTAIN REAL PROPERTY
MORE FULLY DESCRIBED ON EXHIBIT A ATTACHED HERETO (THE "LAND").
B.
PURSUANT TO A CERTAIN MASTER CREDIT AGREEMENT BETWEEN THE BORROWER
AND LENDER DATED OF EVEN DATE HEREWITH (AS AMENDED, RESTATED, SUPPLEMENTED OR
OTHERWISE MODIFIED FROM TIME TO TIME AND IN EFFECT ON THE DATE HEREOF, "CREDIT
AGREEMENT") THE LENDER HAS AGREED TO MAKE CERTAIN LOANS SECURED BY THIS MORTGAGE
TO THE BORROWER IN THE AMOUNT OF UP TO ONE HUNDRED FIVE MILLION AND NO/100
DOLLARS ($105,000,000.00) ("LOAN").
C.
THE LOAN IS EVIDENCED BY CERTAIN PROMISSORY NOTES EXECUTED AND
DELIVERED BY THE BORROWER TO THE LENDER IN THE AGGREGATE PRINCIPAL SUM OF ONE
HUNDRED FIVE MILLION AND NO/100 DOLLARS ($105,000,000.00) (COLLECTIVELY, THE
"NOTES").
D.
THE NOTES BEAR INTEREST AT A PER ANNUM RATE OF INTEREST ALL AS
MORE FULLY SET FORTH IN THE NOTES ("INTEREST RATE") EXCEPT THAT DURING THE
PERIOD OF AND CONTINUANCE OF A DEFAULT UNDER
THE NOTES OR CREDIT AGREEMENT OR AN EVENT OF DEFAULT UNDER THIS MORTGAGE, THE
NOTES SHALL BEAR INTEREST AT A PER ANNUM RATE OF INTEREST OF 200 BASIS POINTS
(2.0%) GREATER THAN THE INTEREST RATE WHETHER OR NOT THE LENDER HAS EXERCISED
ITS OPTION TO ACCELERATE THE MATURITY OF THE NOTES AND DECLARE THE ENTIRE UNPAID
INDEBTEDNESS SECURED HEREBY DUE AND PAYABLE AS MORE FULLY SET FORTH IN THE NOTES
("DEFAULT INTEREST").
E.
AS A REQUIREMENT TO MAKING THE LOAN THE LENDER REQUIRES AMONG
OTHER THINGS THAT THE BORROWER EXECUTE AND DELIVER THIS MORTGAGE ON THE FEE
SIMPLE TITLE TO THE LAND AND THE BUILDING, BUILDINGS AND OTHER IMPROVEMENTS
LOCATED AND/OR TO BE CONSTRUCTED UPON THE LAND.
F.
THE NOTES ARE PAYABLE IN INSTALLMENTS WITH A FINAL PAYMENT OF
PRINCIPAL AND INTEREST DUE AS SET FORTH IN THE NOTES (THE "MATURITY DATE").
G.
AS USED HEREIN, THE TERM "NOTE RATE" SHALL MEAN THE RATE OF
INTEREST THEN IN EFFECT ON THE NOTES WHETHER THE INTEREST RATE OR DEFAULT
INTEREST, AS THE CASE MAY BE.
H.
THE BORROWER IS EXECUTING AND DELIVERING THIS MORTGAGE FOR THE
PURPOSE OF SUBJECTING AND SUBORDINATING ALL OF ITS RIGHT, TITLE AND INTEREST IN
AND TO THE PREMISES (AS DEFINED BELOW) TO THE LIEN OF THIS MORTGAGE. IT IS
EXPRESSLY UNDERSTOOD AND AGREED BY ACCEPTANCE OF THIS MORTGAGE BY THE LENDER
THAT THE BORROWER HAS EXECUTED THIS MORTGAGE FOR THE PURPOSE OF MORTGAGING,