Document:

ex10-16.htm

    Exhibit
10.16

    

    (Multicurrency
- Cross Border)

    

    

    ISDA

    

    SCHEDULE

    to
the

    MASTER
AGREEMENT

    

    dated as
of October 22,
2007

    

    between
MINISTRY PARTNERS FUNDING
LLC (“Party A”)

    

    and

    

    BANK OF MONTREAL (“Party
B”)

    

    

    Part
1

    Termination
Provisions

    

    

    (a)           “Specified Entity” means in
relation to Party A for the purpose of:

    

    Section
5(a)(v), Not Applicable

    Section
5(a)(vi), Not Applicable

    Section
5(a)(vii), Not Applicable

    Section
5(b)(iv), Not Applicable

    

    and in
relation to Party B for the purpose of:

    

    Section
5(a)(v), Not Applicable

    Section
5(a)(vi), Not Applicable

    Section
5(a)(vii), Not Applicable

    Section
5(b)(iv), Not Applicable

    

    
      	
              (b)

            	
              “Specified Transaction”
      will have the meaning specified in Section 14 of this
      Agreement.

            

    

    

    
      	
              (c)

            	
              The
      “Cross Default”
      provision of Section 5(a)(vi) will not apply to either Party A or Party
      B.

            

    

     

    
      	
              (d)

            	
              The
      “Credit Event Upon
      Merger” provisions of Section 5(b)(iv) will not apply to either
      Party A or Party B.

            

    

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              (e)

            	
              The
      “Breach of
      Agreement” provisions of Section 5(a)(ii) will not apply to either
      Party A or Party B.

            

    

    

    
      	
              (f)

            	
              The
      “Credit Support
      Default” provisions of Section 5(a)(iii) will not apply to either
      Party A or Party B.

            

    

    

    
      	
              (g)

            	
              The
      “Misrepresentation”
      provisions of Section 5(a)(iv) will not apply to either Party A or Party
      B.

            

    

    

    
      	
              (h)

            	
              The
      “Default under Specified
      Transaction” provisions of Section 5(a)(v) will not apply to either
      Party A or Party B.

            

    

    

    
      	
              (i)

            	
              The
      “Automatic Early
      Termination” provisions of Section 6(a) will not apply to Party A
      and will not apply to Party B.

            

    

    

    
      	
              (j)

            	
              Payments on Early
      Termination.  For the purpose of Section 6(e) of this
      Agreement:

            

    

    

    
      	
               
      

            	
              (i)

            	
              Market
      Quotation will apply.

            

    

    

    
      	
            	
              (ii)

            	
              The
      Second Method will apply.

            

    

    

    
      	
              (k)

            	
              “Termination Currency”
      means U.S. Dollars.

            

    

    

    
      	
              (l)

            	
              Additional Termination
      Event will apply.  It shall be an Additional Termination
      Event hereunder, with Party A as the Affected Party,
  if:

            

    

    

    
      	
               
      

            	
              (i)

            	
              an
      Event of Default occurs under the Loan, Security and Servicing Agreement
      and either (1) the obligations under the Loan, Security and Servicing
      Agreement are accelerated in accordance with the terms of the Loan,
      Security and Servicing Agreement or (2) the Loan, Security and Servicing
      Agreement is terminated as a result of repayment in full by Party A of all
      of Party A’s obligations, other than hedging obligations, under the Loan,
      Security and Servicing Agreement;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              the
      Loan, Security and Servicing Agreement is amended or modified in any
      manner, without Party B’s prior written consent, and Party B concludes, in
      its sole discretion, that such amendment or modification could have a
      material adverse effect on Party B’s position under this Agreement or any
      transaction; or

            

    

    

    
      	
               
      

            	
              (iii)

            	
              Transactions
      entered into under this Agreement cease to be secured under the Loan,
      Security and Servicing Agreement and the other documents relating
      thereto.

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Part
2

    Tax
Representations

    

    
      	
              (a)

            	
              Payer
      Representation.  For the purpose of Section 3(e) of this
      Agreement, Party A and Party B will each make the following
      representation:-

            

    

    

    It is not
required by any applicable law, as modified by the practice of any relevant
governmental revenue authority, of any Relevant Jurisdiction to make any
deduction or withholding for or on account of any Tax from any payment (other
than interest under Section 2(e), 6(d)(ii) or 6(e) of this Agreement) to be made
by it to the other party under this Agreement.  In making this
representation, it may rely on:

    

    
      	
               
      

            	
              (i)

            	
              the
      accuracy of any representations made by the other party pursuant to
      Section 3(f) of this Agreement;

            

    

    

    
      	
            	
              (ii)

            	
              the
      satisfaction of the agreement contained in Section 4(a)(i) or 4(a)(iii) of
      this Agreement and the accuracy and effectiveness of any document provided
      by the other party pursuant to Section 4(a)(i) or 4(a)(iii) of this
      Agreement; and

            

    

    

    
      	
            	
              (iii)

            	
              the
      satisfaction of the agreement of the other party contained in Section 4(d)
      of this Agreement;

            

    

    

    provided that it shall not be
a breach of this representation where reliance is placed on clause (ii) and the
other party does not deliver a form or document under Section 4(a)(iii) by
reason of material prejudice to its legal or commercial position.

    

    
      	
              (b)

            	
              Payee Tax
      Representations.  For the purpose of Section 3(f) of this
      Agreement,  Party A and Party B make the representations
      specified below, if any:

            

    

    

    
      	
               
      

            	
              (i)

            	
              The
      following representation will apply to Party A and will
      apply to Party B when Party B is acting through its Toronto
      office:

            

    

    

    It is
fully eligible for the benefits of the “Business Profits” or “Industrial and
Commercial Profits” provision, as the case may be, the “Interest” provision or
the “Other Income” provision (if any) of the Specified Treaty with respect to
any payment described in such provisions and received or to be received by it in
connection with this Agreement and no such payment is attributable to a trade or
business carried on by it through a permanent establishment in the Specified
Jurisdiction.

    

    “Specified
Treaty” means with respect to Party B or Party A as Payee, the income tax
convention between Canada and the United States of America.

    

    “Specified
Jurisdiction” means, with respect to Party A as Payee Canada.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Specified
Jurisdiction” means, with respect to Party B as Payee the United States of
America.

    

    
      	
               
      

            	
              (ii)

            	
              The
      following representation will not apply to Party A and will apply to Party
      B when Party B is acting through its Chicago
  office:

            

    

    

    Each
payment received or to be received by it in connection with this Agreement will
be effectively connected with its conduct of a trade or business in the United
States of America.

    

    
      	
               
      

            	
              (iii)

            	
              The
      following representation will apply to Party A and will not apply to Party
      B:

            

    

    

    It has
been duly incorporated, created or organized under the laws of the United States
of America or of any State of the United States of America, and it is validly
existing under those laws.

    

    

    Part
3

    Agreement
to Deliver Documents

    

    For the
purpose of Sections 4(a)(i) and (ii) of this Agreement, each party agrees to
deliver the following documents, as applicable:

    

    
      	
              (a)

            	
              Each
      party shall, as soon as practicable after demand, deliver to the other
      Party any form or document reasonably requested by the other party,
      including without limitation, any form or document required to enable such
      other party to make payments hereunder without withholding for or on
      account of Taxes or with such withholding at a reduced
      rate.  Without limiting the generality of the
      foregoing:

            

    

    

    
      	
              Party
      required to deliver document

            	
               

              Form/Document/Certificate

            	
               

              Date
      by which to be delivered

            	
               

              Covered
      by Section 3(d) Representation

               

            
	
              Party
      A

            	
              Form
      W-9

            	
              Upon
      execution of this Agreement

            	
              Yes

            
	
              Party
      B

            	
              Form
      W-8-ECI, with respect to Transactions entered into by Party B’s Chicago
      Office

            	
              Upon
      execution of this Agreement

            	
              Yes

            
	
              Party
      B

            	
              Form
      W-8-BEN, with respect to Transactions entered into by Party B’s London and
      Toronto Offices

            	
              Upon
      execution of this Agreement

            	
              Yes

            

    

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              (b)          
      Other documents to be delivered by each party concurrently with the
      execution and delivery of this Agreement
are:

            

    

    

    
      	
              Party
      required to deliver document

            	
               

              Form/Document/Certificate

            	
               

              Date
      by which to be delivered

            	
               

              Covered
      by Section 3(d) Representation

               

            
	
              Party
      A and Party B

            	
              Certificate
      of incumbency containing specimen signatures of each person executing the
      Agreement and if requested, any Confirmation

            	
              Upon
      execution of this Agreement, and if requested, each
      Confirmation

            	
              Yes

            
	
              Party
      A

            	
              Legal
      opinion substantially in the form of Exhibit I attached
    hereto

            	
              Upon
      execution of this Agreement

            	
              No

            
	
              Party
      A

            	
              Audited
      Annual and Quarterly Financial Statements

            	
              Promptly
      upon request

            	
              Yes

            

    

    

    

    Part
4

    Miscellaneous

    

    
      	
              (a)

            	
              Addresses for
      Notices.  For the purpose of Section 12(a) of this
      Agreement:

            

    

    

    Address(es) for notices or
communications to Party A:

    

    
      
        	
                Address:

              	
                Ministry
      Partners Funding, LLC

              
	 
      	
                955
      W. Imperial Highway

              
	 
      	
                Brea,
      California  92821

              
	 
      	 
      
	 
      	
                Attention:  Billy
      M. Dodson, President

              
	 
      	
                Facsimile:  (714)
      671-5767

              
	 
      	
                Telephone:  (714)
      671-5720

              
	 
      	 
      
	
                With
      a copy to:

              	
                Randy
      K. Sterns, Esq.

              
	 
      	
                Bush
      Ross, P.A.

              
	 
      	
                220
      South Franklin Street

              
	 
      	
                Tampa,
      Florida 33602-5330

              

      

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Address(es) for notices or
communications to Party B:

    

    
      
        	
                With
      respect to Transactions:

              	 
      

      

       

      
        	 
      	 
      
	
                Address:

              	
                Bank
      of Montreal

              
	 
      	
                130
      Adelaide Street West, Suite 500

              
	 
      	
                Toronto,
      Ontario   M5H 4E1

              
	 
      	
                Canada

              
	 
      	 
      
	 
      	
                Attention:  Manager,
      Confirmations

              
	 
      	
                Facsimile:  (416)
      867-4778/6827

              
	 
      	
                Telephone:  (416)
      867-7173

              

      

      Any other
notice sent to Party B (including without limitation, any notice in connection
with Section 5, 6 or 9(b)) shall be copied to the following
address:

       

      
        
          	
                  Address:

                	
                  Bank
      of Montreal

                
	 
      	
                  24th
      Floor

                
	 
      	
                  100
      King Street West

                
	 
      	
                  Toronto,
      Ontario   M5X 1H3

                
	 
      	 
      
	 
      	
                  Attention:  Managing
      Director, Documentation

                
	 
      	
                  Telephone:  (416)
      867-4710

                
	 
      	
                  Facsimile:  (416)
      956-2318

                

        

      

       

       

    

    
      	
              (b)

            	
              Process
      Agent.  For purposes of Section 13(c) of this
      Agreement:

            

    

    

    Party A
appoints as its Process Agent:   Not applicable.

    

    Party B
appoints as its Process Agent: its Office at 3 Times Square, New York, N.Y.
10036.

    

    
      	
              (c)

            	
              Offices.  The
      provisions of Section 10(a) will apply to this
  Agreement.

            

    

    

    
      	
              (d)

            	
              Multibranch
      Party.  For the purpose of Section 10(c) of this
      Agreement:

            

    

    

    Party A
is not a Multibranch Party and, for the purposes of this Agreement and each
Transaction entered into pursuant hereto, may act through its Brea, California
Office.

    

    Party B
is a Multibranch Party and, for purposes of this Agreement and each Transaction
entered into pursuant hereto, may act through its London, Chicago or Toronto
Offices.

    

    
      	
              (e)

            	
              Calculation
      Agent.  The Calculation Agent is Party B, unless
      otherwise specified in a Confirmation in relation to the relevant
      Transaction.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (f)           Credit Support
Document(s).  None.

    

    
      	
              (g)

            	
              Credit Support
      Provider.  None.

            

    

    

    
      	
              (h)

            	
              Governing
      Law.  This Agreement will be governed by and construed in
      accordance with the laws of the State of New York (without reference to
      choice of law doctrine).

            

    

    

    
      	
              (i)

            	
              Netting of
      Payments.  Subparagraph (ii) of Section 2(c) shall apply
      to all Transactions.

            

    

    

    
      	
              (j)

            	
              “Affiliate” will have the
      meaning specified in Section 14 of this
  Agreement.

            

    

    

    

    Part
5

    Other
Provisions

    

    
      	
              (a)

            	
              2000 ISDA
      Definitions.  The provisions of the 2000 ISDA Definitions
      the (“Definitions”), published by the International Swaps and Derivatives
      Association, Inc., are incorporated by reference in, and will be deemed to
      be part of, this Agreement and each Confirmation as if set forth in full
      in this Agreement or in such Confirmation, without regard to any revision
      or subsequent edition thereof.  In the event of any
      inconsistency between the provisions of this Agreement and the
      Definitions, this Agreement will prevail.  In the event of any
      inconsistency between the provisions of any Confirmation and this
      Agreement or the Definitions, such Confirmation will prevail for the
      purpose of the relevant
transaction.

            

    

    

    
      	
              (b)

            	
              Illegality or Force
      Majeure.  As contemplated by Section 6 of this Agreement,
      while neither party shall be obligated to violate any applicable law by
      reason of Section 6 or this Part 5(b), each party shall retain its right
      to payment pursuant to Section 6(e) if the other party does not perform
      because of Illegality or Force
Majeure.

            

    

    

    (c)           Set-off. The following is
added as Section 6(f):

    

    "(f) Any
amount (the "Early Termination Amount") payable to one party (the "Payee") by
the other party (the "Payer") under Section 6(e), in circumstances where there
is a Defaulting Party or one Affected Party in the case where a Termination
Event under Section 5(b)(iv) or 5(b)(v) has occurred, will, at the option of the
party ("X") other than the Defaulting Party or the Affected Party ("Y") (and
without prior notice to Y), be reduced by its set-off against any amount(s) (the
"Other Agreement Amount") payable (whether at such time or in the future or upon
the occurrence of a contingency) by the Payee to the Payer (irrespective of the
currency, place of payment or booking office of the obligation) under any other
agreement(s) between the Payee and the Payer or instrument(s) or undertaking(s)
issued or executed by one party to, or in favour of, the other party (and the
Other Agreement Amount will be discharged promptly and in all respects to the
extent it is so set-off). X will give notice to Y of any set-off effected under
this Section 6(f).

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    For this
purpose, either the Early Termination Amount or the Other Agreement Amount (or
the relevant portion of such amounts) may be converted by X into the currency in
which the other is denominated at the rate of exchange at which such party would
be able, acting in a reasonable manner and in good faith, to purchase the
relevant amount of such currency.

    

    If an
obligation is unascertained, X may in good faith estimate that obligation and
set-off in respect of the estimate, subject to the relevant party accounting to
the other when the obligation is ascertained.

    

    Nothing
in this Section 6(f) shall be effective to create a charge or other security
interest. This Section 6(f) shall be without prejudice and in addition to any
right of set-off, combination of accounts, lien or other right to which any
party is at any time otherwise entitled (whether by operation of law, contract
or otherwise)."

    

    
      	
              (d)

            	
              Conditions to Certain
      Payments.  Notwithstanding the provision of Section
      6(e)(i)(3) and (4), as applicable, if the amount referred to therein is a
      positive number, the Defaulting Party will pay such amount to the
      Non-defaulting Party, and if the amount referred to therein is a negative
      number, except to the extent set out below, the Non-defaulting Party shall
      have no obligation to pay any amount thereunder to the Defaulting Party
      unless and until the conditions set forth in (i) and (ii) below have been
      satisfied, at which time there shall arise an obligation of the
      Non-defaulting Party to pay to the Defaulting Party an amount equal to the
      absolute value of such negative number less any and all amounts which the
      Defaulting Party may be obligated to pay under Section 11 (the "Conditional Payment
      Amount"):

            

    

    

    
      	
               
      

            	
              (i)

            	
              the
      Non-defaulting Party shall have received confirmation satisfactory to it
      in its sole discretion (which may include an unqualified opinion of its
      counsel) that (x) no further payments or deliveries under Section 2(a)(i)
      or 2(e) in respect of Terminated Transactions will be required to be made
      in accordance with Section 6(c)(ii) and (y) each Specified Transaction
      shall have terminated pursuant to its specified termination date or
      through the exercise by a party of a right to terminate and all
      obligations owing under each such Specified Transaction shall have been
      fully and finally performed;

            

    

    

    
      	
            	
              (ii)

            	
              all
      obligations (contingent or absolute, matured or unmatured) of the
      Defaulting Party and any Affiliate of the Defaulting Party to make any
      payment or delivery to the Non-defaulting Party or any Affiliate of the
      Non-defaulting Party shall have been fully and finally
      performed;

            

    

    

    provided
that if the Conditional Payment Amount exceeds
the aggregate amount of the obligations owing to the Non-defaulting Party and
Affiliates of the Non-defaulting Party by the Defaulting Party and Affiliates of
the Defaulting Party (including without limitation all obligations owing under
each Specified

    Transactions),
the Non-defaulting Party shall pay the amount of the excess to the Defaulting
Party.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              (e)

            	
              Relationship between the
      Parties.  Each party will be deemed to represent to the
      other party on the date on which it enters into a Transaction that (absent
      a written agreement between the parties that expressly imposes affirmative
      obligations to the contrary for that
  Transaction):

            

    

    

    
      	
               
      

            	
              (i)

            	
              Non-Reliance.  It
      is acting for its own account, and it has made its own independent
      decision to enter into that Transaction and as to whether that Transaction
      is appropriate or proper for it based upon its own judgment and upon
      advice from such advisors as it has deemed necessary.  It is not
      relying on any communication (written or oral) of the other Party as
      investment advice or as a recommendation to enter into that Transaction;
      it being understood that information and explanations related to the terms
      and conditions of a Transaction shall not be considered investment advice
      or a recommendation to enter into that Transaction.  No
      communication (written or oral) received from the other party shall be
      deemed to be an assurance or guarantee as to the expected results of that
      Transaction.

            

    

    

    
      	
            	
              (ii)

            	
              Assessment and
      Understanding.  It is capable of assessing the merits of
      and understanding (on its own behalf or through independent professional
      advice), and understands and accepts the terms, conditions and risks of
      that Transaction.  It is also capable of assuming, and assumes,
      the risks of that Transaction.

            

    

    

    
      	
            	
              (iii)

            	
              Status of
      Parties.  The other party is not acting as a fiduciary
      for or an advisor to it in respect of that
  Transaction.

            

    

    

    
      	
              (f)

            	
              Bankruptcy
      Code.  The parties hereto intend that this Agreement
      shall be a “master agreement” for purposes of 11 U.S.C. §101(53B) and
      12U.S.C. §1821(e)(8)(D)(vii),
      or any successor provisions.

            

    

    

    
      	
              (g)

            	
              Commodity Exchange Act. 
      

            	
              Each
      party represents to the other party on and as of the date hereof and on
      each date on which a Transaction is entered into among them
      that:

            

    

    

    
      	
               
      

            	
              (i)

            	
              such
      party is an “eligible contract participant” as defined in the U.S.
      Commodity Exchange Act, as amended (the
“CEA”);

            

    

    

    
      	
               
      

            	
              (ii)

            	
              neither
      this Agreement nor any Transaction has been executed or traded on a
      “trading facility” as such term is defined in the CEA;
  and

            

    

    

    
      	
               
      

            	
              (iii)

            	
              the
      terms of this Agreement and each Transaction have been subject to
      individual negotiation.

            

    

     

     

    
      	
              (h) 

            	
              Escrow.   If
      by reason of the time difference between the cities in which payments are
      to be made or otherwise, it is not possible for simultaneous payments to
      be made on any date on which both parties are required to make payments
      hereunder, either party may at its option and in its sole discretion
      notify the other party that payments on that date are to be made in
      escrow.  In this case deposit of the payment due earlier on that
      date shall be made by 2:00 p.m. (local time at the place for the earlier
      payment) on that date with an escrow agent selected by the party giving
      the notice and reasonably acceptable to the other party, accompanied by
      irrevocable payment instructions (a) to release the deposited payment to
      the intended recipient upon receipt by the escrow agent of the required
      deposit of the corresponding payment from the other party on the same date
      accompanied by irrevocable payment instructions to the same effect or (b)
      if the required deposit of the corresponding payment is not made on that
      same date, to return the payment deposited to the party that paid it into
      escrow.  The party that elects to have payments made in escrow
      shall pay the costs of the escrow arrangements and shall cause those
      arrangements to provide that the intended recipient of the payment due to
      be deposited first shall be entitled to interest on that deposited payment
      for each day in the period of its deposit at the rate offered by the
      escrow agent for that day for overnight deposits in the relevant currency
      in the office where it holds that deposited payment (at 11:00 a.m. local
      time on that day) if that payment is not released by 5:00 p.m. local time
      on the date it is deposited for any reason other than the intended
      recipient’s failure to make the escrow deposit it is required to make
      hereunder in a timely fashion.

            

    

    

    
      	
              (i)

            	
              WAIVER OF JURY
      TRIAL:  EACH PARTY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
      APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
      SUIT, ACTION OR PROCEEDING RELATING TO THIS AGREEMENT, ANY CREDIT SUPPORT
      DOCUMENT OR ANY TRANSACTION.  EACH PARTY ACKNOWLEDGES THAT IT
      AND THE OTHER PARTY HAVE ENTERED INTO THIS AGREEMENT AND ANY CREDIT
      SUPPORT DOCUMENT, AS APPLICABLE, IN RELIANCE ON, AMONG OTHER THINGS, THE
      MUTUAL WAIVERS IN THIS
SECTION.

            

    

    

    
      	
              (j)

            	
              Telephone
      Recording.  Each party (i) consents to the recording of
      telephone conversations of trading and marketing personnel of the parties
      in connection with this Agreement or any potential or actual Transaction
      hereunder; (ii) agrees to obtain any necessary consent of and give notice
      of such recording to its trading and marketing personnel; and (iii) agrees
      that such recordings may be submitted in evidence in any proceeding
      relating to this Agreement, subject to applicable rules of discovery and
      evidence.

            

    

    

    
      	
              (k)

            	
              Additional
      Definitions.  The following definitions shall be added to
      Section 14 in their appropriate alphabetical
  place:

            

    

    

    “Force
Majeure” is a natural or man-made disaster, armed conflict, riot, civil
disturbance, or similar event that materially disrupts transportation or
communication facilities in the relevant city where the party is to make
payment, or otherwise prevents the
personnel of the party from performing their duties in connection with such
payment, and is beyond the control of the party.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Loan, Security
and Servicing Agreement” means the Loan, Security and Servicing Agreement
dated as of October 25, 2007 among Party A, Evangelical Christian Credit Union,
Fairway Finance Company, LLC, BMO Capital Markets Corp., U.S. Bank National
Association and Lyon Financial Services, Inc, as amended, supplemented, restated
or replaced from time to time.

    

    
      	
              (l)

            	
              No
      Petition.  Party B hereby covenants and agrees that it
      will not institute against, or join any other Person in instituting
      against, the Lender any bankruptcy, reorganization, arrangement,
      insolvency or liquidation proceeding, or other proceeding under any
      federal or state bankruptcy or similar law, for one year and one day after
      the latest maturing Note issued by the Lender is paid in
    full.

            

    

    

    
      	
              (m)

            	
              Limited
      Recourse.  Notwithstanding anything in this Agreement to
      the contrary, the payment obligations of Party A set forth under this
      Agreement (including this Schedule and any Confirmation) shall be limited
      recourse obligations of Party A and shall be payable only as and to the
      extent funds are available for such purpose pursuant to Section 1.4 of the
      Loan, Security and Servicing Agreement.  Upon the exhaustion of
      all such sources of payment, all further liability of Party A under this
      Agreement shall be extinguished, and no further claims shall be made
      against Party A in respect thereof.

            

    

    

    
      	
              (n)

            	
              Defined
      Terms.  Capitalized terms not otherwise defined in this
      Agreement will have the meanings ascribed to those terms in the Loan,
      Security and Servicing Agreement.

            

    

    

    

    
      	
              MINISTRY
      PARTNERS FUNDING LLC

            	
              BANK
      OF MONTREAL

            
	 
      	 
      
	 
      	 
      
	
              By:

            	
              By:

            
	 
      	 
      
	
              Name:

            	
              Name:

            
	 
      	 
      
	
              Title:

            	
              Title:

            
	 
      	 
      
	
              Date:

            	
              Date:ex10_1.htm

    

      PROMISSORY NOTE

      
        	
                Borrower:
      

              	
                Language
      Access Network, LLC

                111
      West Rich Street

                Suite
      150

                Columbus
      OH 43215

              	
                Lender:

              	
                Interim
      Support, LLC

                111
      West Rich Street

                Suite
      150

                Columbus
      OH 43215

              
	 	 	 
	
                Principal
      Amount: $1,000,00.00

              	 	 

      

      

      PROMISE
TO PAY. Language Access Network, LLC. (“Borrower”) promises to pay to Interim
Support, LLC (“Lender"), or order, in lawful money of the United States of
America, the principal amount of One Million & 00/100 Dollars
($1,000,000.00), together with interest on the unpaid principal balance from
October 11, 2007, until paid in full. 

       

      This
revolving Note evidences an arrangement (the “Subject Commitment"') whereby
Borrower may, on the date of this Note and thereafter until (but not including)
October 11, 2008 {the ”Expiration Date") or such earlier date upon which the
Subject Commitment is terminated or reduced to zero, obtain from lender, subject
to the terms and conditions of this Note, such loans (each a "Subject Loan") as
Borrower may from time to time properly request. The amount of the Subject
Commitment shall be equal to the face amount of this Note, provided, that
Borrower shall have the right, at any time and from time to time, to permanently
reduce the amount of the Subject Commitment to any amount that is an integral
multiple of One Thousand and no/100 dollars ($1,000.00) (the "Minimum Borrowing
Amount”) by giving Lender not less than one (1) Banking Day's prior notice
(which shall be irrevocable) of the effective date of the reduction, provided,
that no reduction in the amount of the Subject Commitment shall be effective if,
after giving effect to that reduction, the aggregate unpaid principal balance of
the Subject Loans would exceed the amount of the Subject Commitment as so
reduced. Regardless of any fee or other consideration received by lender, the
Subject Commitment may be terminated pursuant to Default and the Lender's
Rights. 

       

      Loan
Requests; Disbursement. A Subject Loan is properly requested if requested orally
or in writing not later than 2:00 p.m., Banking Office Time, of the Banking Day
upon which that Subject Loan is to be made. Each request for a Subject Loan
shall of itself constitute, both when made and when honored a representation and
warranty by Borrower to Lender that Borrower is entitled to obtain the requested
Subject Loan. Lender is hereby irrevocably authorized to make an appropriate
entry on this Note, in a loan account on Lender's books and records, or both,
whenever Borrower obtains a Subject Loan. Each such entry shall be prima facie
evidence of the data entered, but the making of such an entry shall not be a
condition to Borrower's obligation to pay. Lender is hereby directed, absent
notice from Borrower to the contrary, to disburse the proceeds of each Subject
Loan to Borrower's general checking account with Lender. Lender shall have no
duty to follow, nor any liability for, the application of any proceeds of any
Subject Loan. 

       

      Each
Subject Loan shall be in an amount that is an integral multiple of the Minimum
Borrowing Amount. Borrower shall not be entitled to obtain any Subject Loan (a)
on or after the termination of the Subject Commitment or the reduction thereof
to zero, (b) if either at the time of Borrower's request for that loan or when
that request is honored there shall exist or would occur any Event of Default,
(c) if any representation, warranty, or other statement (other than any
expressly made as of a single date) made by any Person (other than Lender) in
any Related Writing would, if made either as of the time of Borrower's request
for that Subject Loan or as of the time when that request is honored, be untrue
or incomplete in any respect, or (d) if after giving effect to that Subject Loan
and all others for which requests are then pending, the aggregate unpaid
principal balance of the Subject Loans would exceed the then amount of the
Subject Commitment. 

       

      The
unpaid principal balance of each Subject Loan shall at all times bear interest
at the Contract Rate, provided, that so long as any principal of or accrued
interest on any Subject Loan is overdue, all unpaid principal of each Subject
Loan and all overdue interest on that principal shall bear interest at a
fluctuating rate equal to two percent (2%) per annum above the rate that would
otherwise be applicable, but in no case less than two percent (2%) per annum
above the Prime Rate; provided further, that in no event shall any principal of
or interest on any Subject Loan bear interest at any time after Maturity at a
lesser rate than the rate applicable thereto immediately after Maturity. The
"Contract Rate" shall at all times be a fluctuating rate equal to two and no one
hundredths of one percent (2.00%) per annum plus the Index, provided, that in
the event the Index is unavailable as a result of Lender's good faith
determination of the occurrence of one of the events specified in the section
labeled "LIBOR Unavailable", the "Contract Rate" shall be a fluctuating rate
equal to the Prime Rate. 

       

      Interest
on each Subject Loan shall be payable in arrears on December 1, 2007, and on the
first day of each month thereafter, at Maturity, and on demand thereafter. The
Index rate shall be adjusted by Lender, as necessary, at the end of each Banking
Day during the term hereof. 

       

      LIBOR
Unavailable. Notwithstanding any provision or inference to the contrary, the
Contract Rate shall not be based on the Index if Lender shall determine in good
faith that (a) any governmental authority has asserted that it is unlawful for
Lender to fund, make, or maintain loans bearing interest based on the Index, or
(b) circumstances affecting the market selected by Lender for the purpose of
funding the Subject Loans make it impracticable for Lender to determine the
Index. Lender's books and records shall be conclusive (absent obvious error) as
to whether Lender shall have determined that the Contract Rate is prohibited
from being based on the Index. If the Contract Rate is prohibited from being
based on the Index as a result of the occurrence of one of the events referenced
in this section, then, and in each such case, notwithstanding any provision or
inference to the contrary, the then outstanding principal balance of this Note
shall upon lender giving Borrower notice of Lender's determination of the
occurrence of such an event, bear interest at a Contract Rate based on the Prime
Rate including the applicable spread described above. 

       

      Each
Subject Loan shall be due and payable in full upon the Expiration Date.

       

      Unless
otherwise agreed or required by applicable law, payments will be applied first
to any accrued unpaid interest; then to principal; then to any unpaid collection
costs; and then to any late charges. The annual interest rate for this Note is
computed on a 365/360 basis; that is, by applying the ratio of the annual
interest rate over a year of 360 days, multiplied by the outstanding principal
balance, multiplied by the actual number of days the principal balance is
outstanding. Borrower will pay Lender at Lender's address shown above or at such
other place as Lender may designate in writing.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      VARIABLE INTEREST
RATE. The
interest rate on this Note is subject to change from time to time based on
changes in an index which is the One Month LIBOR "One Month LIBOR” means, with
respect to a loan, the rate per annum (rounded upwards, if necessary, to the
next higher 1/16 of 1 %) determined by Lender and equal to the average rate per
annum at which deposits (denominated in United States dollars) in an amount
similar to the principal amount of that loan and with a maturity of one (1)
month are offered at 11 :00 A.M London time (or as soon thereafter as
practicable) on the Date of Reference by banking institutions in the London,
United Kingdom market. as such interest rate is referenced
and reported by the British Bankers Association on Reuters Screen L1BOR01 Page
or, if the same is unavailable, any other generally accepted authoritative
source of such interest rate as Lender may reference from time to time (the
"Index"), Lender will tell Borrower the current Index rate upon Borrower's
request The interest rate change will not occur more often than each change in
One Month LIBOR Borrower understands that Lender may make loans based on other
rates as well. The interest rate to be applied to the unpaid principal balance
during this Note will be at a rate of 2,000 percentage points over the Index.
NOTICE: Under no circumstances will the interest rate on this Note be more than
the maximum rate allowed by applicable law. Whenever increases occur in the
interest rate, Lender, at its option, may do one or more of the following: (A)
increase Borrower's payments to ensure Borrower's loan will pay off by its
original final maturity date, (B) increase Borrower's payments to cover accruing
interest, (C) increase the number of Borrower's payments, and (D) continue
Borrower's payments at the same amount and increase Borrower's final payment.

       

      PREPAYMENT. Borrower
may pay without penalty all or a portion of the amount owed earlier than it is
due Early payments will not, unless agreed to by Lender in writing, relieve
Borrower of Borrower's obligation to continue to make payments under the payment
schedule Rather, early payments will reduce the principal balance due and may
result in Borrower’s making fewer payments. Borrower agrees not to send Lender
payments marked "paid in full", "without recourse", or similar language. If
Borrower sends such a payment, Lender may accept it without losing any of
Lender's rights under this Note, and Borrower will remain obligated to pay any
further amount owed to Lender. All written communications concerning disputed
amounts, including any check or other payment instrument that indicates that the
payment constitutes "payment in full" of the amount owed or that is tendered
with other conditions or limitations or as full satisfaction of a disputed
amount must be mailed or delivered to: Interim Support, LLC, 111 Rich Street
Suite 150, Columbus, OH 43215. 

       

      LATE CHARGE. If a
payment is 10 days or more late, Borrower will be charged 5.000% of the unpaid
portion of the regularly scheduled payment or $20.00, whichever is greater,

       

      INTEREST AFTER
DEFAULT. Upon
default, including failure to pay upon final maturity, the interest rate on this
Note shall be increased by adding a 2.000 percentage point margin ("Default Rate
Margin"). The Default Rate Margin shall also apply to each succeeding interest
rate change that would have applied had there been no default. However, in no
event will the interest rate exceed the maximum interest rate limitations under
applicable law. 

       

      DEFAULT. Each of
the following shall constitute an event of default ("Event of Default") under
this Note: 

       

      Payment Default. Borrower
fails to make any payment when due under this Note. 

       

      Other Defaults. Borrower
fails to comply with or to perform any other term, obligation, covenant or
condition contained in this Note or in any of the related documents or to comply
with or to perform any term, obligation, covenant or condition contained in any
other agreement between Lender and Borrower. 

       

      False Statements. Any
warranty, representation or statement made or furnished to Lender by Borrower or
on Borrower's behalf under this Note or the related documents is false or
misleading in any material respect either now or at the time made or furnished
or becomes false or misleading at any time thereafter.

       

      LENDER’S RIGHTS. Upon
default, Lender may declare the entire unpaid principal balance under this Note
and all accrued unpaid interest immediately due, and then Borrower will pay that
amount; provided, however that in the case of an Event of Default of the type
described in the "Insolvency" subsection above, such acceleration shall be
automatic and not optional. 

       

      ATTORNEYS' FEES;
EXPENSES. Lender
may hire or pay someone else to help collect this Note if Borrower does not pay.
Borrower will pay Lender that amount. This includes, subject to any limits under
applicable law, Lender's attorneys' fees and Lender's legal expenses, whether or
not there is a lawsuit, including attorneys' fees, expenses for bankruptcy
proceedings (including efforts to modify or vacate any automatic stay or
injunction), and appeals. If not prohibited by applicable law. Borrower also
will pay any court costs in addition to all other sums provided by law.

       

      JURY WAIVER. Lender
and Borrower hereby waive the right to any jury trial in any action, proceeding,
or counterclaim brought by either Lender or Borrower against the other.

       

      WAIVERS; REMEDIES; APPLICATION OF
PAYMENTS. Lender
may from time to time in its discretion grant waivers and consents in respect of
this Note or any other Related Writing or assent to amendments thereof, but no
such waiver, consent, or amendment shall be binding upon Lender unless set forth
in a writing (which writing shall be narrowly construed) signed by Lender. No
course of dealing in respect of, nor any omission or delay in the exercise of,
any right, power. or privilege by Lender shall operate as a waiver thereof, nor
shall any single or partial exercise thereof preclude any further or other
exercise thereof or of any other, as each such right, power, or privilege may be
exercised either independently or concurrently with others and as often and in
such order as Lender may deem expedient. Without limiting the generality of the
foregoing, neither Lender's acceptance of one or more late payments or charges
nor Lender's acceptance of interest on overdue amounts at the respective rates
applicable thereto shall constitute a waiver of any right of Lender Each right,
power, or privilege specified or referred to in this Note is in addition to and
not in limitation of any other rights, powers, and privileges that Lender may
otherwise have or acquire by operation of law, by other contract, or otherwise
Lender shall be entitled to equitable remedies with respect to each breach or
anticipatory repudiation of any provision of this Note, and Borrower hereby
waives any defense which might be asserted to bar any such equitable remedy
Lender shall have the right to apply payments in respect of the indebtedness
evidenced by this Note with such allocation to the respective parts thereof and
the respective due dates thereof as Lender in its sole discretion may from time
to time deem advisable. 

       

      NOTICES AND OTHER
COMMUNICATIONS. Each
notice, demand, or other communication, whether or not received, shall be deemed
to have been given to Borrower whenever Lender shall have mailed a writing to
that effect by certified or registered mail to Borrower at Borrower's mailing
address (or any other address of which Borrower shall have given Lender notice
after the execution and delivery of this Note); however, no other method of
giving actual notice to Borrower is hereby precluded Borrower hereby irrevocably
accepts Borrower's appointment as each Obligor's agent for the purpose of
receiving any notice, demand, or other communication to be given by Lender to
each such Obligor pursuant to any Related Writing Lender shall be entitled to
assume that any knowledge possessed by any Obligor other than Borrower is
possessed by Borrower Each communication to be given to Lender shall be in
writing unless this Note expressly permits that communication to be made orally,
and in any case shall be given to Lender at Lender's banking office (or any
other address of which Lender shall have given notice to Borrower after the
execution and delivery this Note) Borrower hereby assumes all risk arising out
of or in connection with each oral communication given by Borrower and each
communication given or attempted by Borrower in contravention of this section,
Lender shall be entitled to rely on each communication believed in good faith by
Lender to be genuine. 

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      GENERAL
PROVISIONS. If any
part of this Note cannot be enforced, this fact will not affect the rest of the
Note Borrower does not agree or intend to pay. and Lender does not agree or
intend to contract for, charge, collect, take, reserve or receive (collectively
referred to herein as "charge or collect") any amount in the nature of interest
or in the nature of a fee for this loan, which would in any way or event
(including demand, prepayment, or acceleration) cause Lender to charge or
collect more for this loan than the maximum Lender would be permitted to charge
or collect by federal law or the law of the State of Ohio (as applicable), Any
such excess interest or unauthorized fee shall, instead of anything stated to
the contrary, be applied first to reduce the principal balance of this loan, and
when the principal has been paid in full, be refunded to Borrower, Lender may
delay or forgo enforcing any of its rights or remedies under this Note without
losing them Borrower and any other person who signs, guarantees or endorses this
Note, to the extent allowed by law, waive presentment, demand for payment and
notice of dishonor. Upon any change in the terms of this Note and unless
otherwise expressly stated in writing, no party who signs this Note, whether as
maker, guarantor, accommodation maker or endorser, shall be released from
liability. All such parties agree that Lender may renew or extend (repeatedly
and for any length of time) this loan or release any party or guarantor or
collateral; or impair, fail to realize upon or perfect Lender's security
interest in the collateral; and take any other action deemed necessary by Lender
without the consent of or notice to anyone. All such parties also agree that
Lender may modify this loan without the consent of or notice to anyone other
than the party with whom the modification is made. The obligations under this
Note are joint and several. 

       

      DEFINITIONS. As used
in this Note, except where the context clearly requires otherwise, 

       

      "Bank
Debt" means, collectively, all Debt to Lender, whether incurred directly to
Lender or acquired by it by purchase, pledge, or otherwise, and whether
participated to or from Lender in whole or in part; 

       

      "Banking
Day" means any day (other than any Saturday, Sunday or legal holiday) on which
Lender's banking office is open to the public for carrying on substantially all
of its banking functions; 

       

      "Banking
Office Time" means, when used with reference to any time, that time determined
at the location of Lender's banking office; 

       

      "Date of
Reference" means, on any Banking Day, a date which is two (2) Eurodollar Banking
Days prior to the Banking Day in question; 

       

      "Debt"
means, collectively, all obligations of the Person or Persons in question,
including, without limitation, every such obligation whether owing by one such
Person alone or with one or more other Persons in a joint, several, or joint and
several capacity, whether now owing or hereafter arising, whether owing
absolutely or contingently, whether created by lease, loan, overdraft, guaranty
of payment, or other contract, or by quasi-contract, tort, statute, other
operation of law, or otherwise; 

       

      "Eurodollar
Banking Day" means any Banking Day on which banks in the London Interbank Market
deal in United States dollar deposits and on which banking institutions are
generally open for domestic and international business at the place where
Lender's banking office is located and in New York City; 

       

      "Maturity"
means, when used with reference to any Subject Loan, the date (whether occurring
by lapse of time, acceleration, or otherwise) upon which that Subject Loan is
due; 

       

      "Note"
means this promissory note (including, without limitation, each addendum,
allonge, or amendment, if any, hereto); 

       

      "Obligor"
means any Person who, or any of whose property, shall at the time in question be
obligated in respect of all or any part of the Bank Debt of Borrower and (in
addition to Borrower) includes, without limitation, co makers, indorsers,
guarantors, pledgors, hypothecators, mortgagors, and any other Person who
agrees, conditionally or otherwise, to assure such other Obligor's creditors or
any of them against loss; 

       

      "Person”
means an individual or entity of any kind including, without limitation, any
association, company, cooperative, corporation, partnership, trust, governmental
body, or any other form or kind of entity; 

       

      "Prime
Rate" means the fluctuating rate per annum which is publicly announced from time
to time by Lender as being its so called "prime rate" or "base rate" thereafter
in effect, with each change in the Prime Rate automatically, immediately, and
without notice changing the Prime Rate thereafter applicable hereunder, it being
acknowledged that the Prime Rate is not necessarily the lowest rate of interest
then available from Lender on fluctuating-rate loans; 

       

      “Proceeding"
means any assignment for the benefit of creditors, any case in bankruptcy, any
marshalling of any Obligor's assets for the benefit of creditors, any moratorium
on the payment of debts or any proceeding under any law relating to
conservatorship, insolvency, liquidation, receivership, trusteeship, or any
similar event, condition, or other thing; 

       

      "Related
Writing" means this Note and any indenture, note, guaranty, assignment,
mortgage, security agreement, subordination agreement, notice, financial
statement, legal opinion, certificate, or other writing of any kind pursuant to
which all or any part of the Bank Debt of Borrower is issued, which evidences or
secures all or any part of the Bank Debt of Borrower, which governs the relative
rights and priorities of Lender and one or more other Persons to payments made
by, or the property of,.any Obligor, which is delivered to Lender pursuant to
another such writing, or which is otherwise delivered to Lender by or on behalf
of any Person (or any employee, officer, auditor, counsel, or agent of any
Person) in respect of or in connection with all or any part of the Bank Debt of
Borrower; and the foregoing definitions shall be applicable to the respective
plurals of the foregoing defined terms. 

       

      PRIOR TO
SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE
INCLUDING THE VARIABLE INTEREST RATE PROVISIONS BORROWER AGREES TO THE TERMS OF
THE NOTE 

       

      BORROWER
ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE, 

       

      BORROWER:

       

      
        	
                Language Access Network,
      LLC.

              
	
                By:

              	/s/ Michael
      Guirlinger
	 	
                Michael
      Guirlinger, CEO/COO

                Language
      Access Network

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