Document:

10.6 - Third Addendum to Third Amendment to Construction-Term Loan Agmt

THIRD ADDENDUM 
TO 
THIRD AMENDMENT TO CONSTRUCTION-TERM LOAN AGREEMENT

This Third Addendum to Third Amendment to Construction-Term Loan Agreement (“Addendum”) is made effective as of the 2nd day of January, 2012 between MLIC Asset Holdings LLC, successor-in-interest to Outsource Services Management, LLC, successor-in-interest to the Federal Deposit Insurance Corporation as receiver of BankFirst (“Lender”) and Iowa Renewable Energy, LLC (“Borrower”). 

RECITALS:

		
	A.
	The Lender and the Borrower entered into that certain Third Amendment to Construction-Term Loan Agreement, dated September 1, 2010, as amended by a First Addendum to Third Amendment to Construction-Term Loan Agreement, dated September 15, 2010 and a Second Addendum to Third Amendment to Construction-Term Loan Agreement, dated February 2, 2011 (collectively, the “Third Amendment”).

		
	B.
	As of January 2, 2012, there was owed on the Note the principal balance of $27,142,668.20, accrued interest in the amount of $151,202.40, totaling $27,293,870.60, plus interest continuing to accrue on the unpaid principal balance in the amount of $4,818.01 per day.  The Note matures on January 2, 2012.  

		
	C.
	The Borrower is in default of the Loan Agreement due to the Borrower's failure to comply with the following covenants: (i) Section 5.01(u) - Rolling twelve month Budget updated monthly, (ii) Section 5.01(v) - 13 week cash flow projection updated weekly, and, (iii) Section 5.02 (z) Net Worth - minimum of $5,000,000.00 (collectively, the “Existing Defaults”)

		
	D.
	The Borrower is also indebted to the Lender, Federation Bank and Washington State Bank under a revolving line of credit note, dated September 1, 2010 in the principal amount of $6,000,000.00 (the “Line of Credit Note”), which is governed by that certain loan agreement between the Borrower and such creditors, dated September 1, 2010 (the “Revolving Line of Credit Loan Agreement”).  

		
	E.
	As of January 2, 2012, there was owed on the Revolving Line of Credit Note the principal balance of $3,874,528.44, accrued interest in the amount of $82,284.14, totaling $3,956,812.58, plus interest continuing to accrue on the unpaid principal balance in the amount of $1,751.07 per day.  The Line of Credit matures on January 2, 2012.

		
	F.
	The Borrower has requested that the Lender extend maturity date of the Note and waive the Existing Defaults.  Subject to the satisfaction of the terms and conditions of this Third Addendum, the Lender has agreed to the Borrower's request.

		
	G.
	The Lender and the Borrower wish to amend the Third Amendment pursuant to the terms of this Addendum and extend the maturity date of the Note pursuant to the terms of a note modification agreement.

NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein it is agreed:

		
	1.
	All terms not otherwise defined in this Addendum shall have the meaning given to such term in the Third Amendment.  The recital paragraphs are hereby incorporated as though fully set forth in this Addendum.

		
	2.
	Notwithstanding the execution of the Third Amendment or any addendum thereto, or the delivery of all documents in furtherance thereof, this Addendum and the Note Modification (as hereinafter defined) becoming effective shall be subject to the timely satisfaction of the following conditions precedent:

		
	(a)
	Except as specifically waived by Lender in this Addendum, no event of Default or event which will mature into an event of Default, shall have occurred and be continuing.  

		
	(b)
	The Borrower shall have delivered the Loan Documents and the agreements listed below, each of which shall 

be in a form and content satisfactory to the Lender, executed by the parties specified therein, and all other documents, certificates, opinions and statements requested by the Lender:

		
	(i)
	This Addendum.

		
	(ii)
	A note modification agreement pursuant to which the maturity date of the Note is extended to January 5, 2013 (the “Note Modification”).

(c) The Borrower shall have paid the Lender an extension fee of Seventy-Five Thousand Dollars ($75,000.00) in US dollars and in readily available funds. 

		
	(d)
	The Borrower shall have provided evidence satisfactory to the Lender, in the exercise of its sole discretion, that the Borrower is certified to produce bio-diesel. 

		
	(e)
	The Lender, including, without limitation, any third party hired by the Lender at the Borrower's expense, shall have completed an inspection of the Borrower's books and records and the results of such inspection shall have been satisfactory to the Lender, in the exercise of its sole discretion. 

		
	(f)
	The Participants shall have approved of this Addendum in a form satisfactory to the Lender. 

		
	(g)
	The Borrower shall have delivered to the Lender copies of all material agreements with third parties, including, but not limited to, management agreements, marketing agreements, procurement contracts, and other contracts used in the normal operations of the Borrower.  In addition, the Borrower shall have assigned to the Lender each of such material agreements as may be required by the Lender, in the exercise of its sole discretion.

		
	(h)
	The Borrower shall have provided the Lender with evidence of the insurance required under Section 3.04 of the Loan Agreement.

		
	(i)
	The Borrower shall have provided the Lender with (A) a written commitment, in a form and content satisfactory to the Lender, from one or more financial institutions (individually and collectively referred to as the “New Revolving Lender”) which shall commit to immediately make available to the Borrower a revolving line of credit in a total amount not less than One Million Dollars ($1,000,000.00) (the “New Revolving Line of Credit”), which shall  reflect that (i) the New Revolving Line of Credit is not secured with the Borrower's assets, and (ii) the payment of the New Revolving Line of Credit is subordinate to the payment of the Note and (B) copies of all of the unexecuted loan documents to be utilized by the New Revolving Lender in connection with  the New Revolving Line of Credit.  

		
	(j)
	The Borrower shall have provided the Lender, in a form and content satisfactory to the Lender, with the Collateral Assignment and other related loan documents of the tolling agreement between the Borrower and Gavilon LLC.  

		
	3.
	Upon satisfaction of all of the conditions set forth in Paragraph 2 above, (i) the Note Modification shall be accepted by the Lender and deemed to be in full force and effect, (ii) the Third Amendment and/or the Loan Agreement shall be deemed to be modified pursuant to Section 4 below, and (iii) the Existing Defaults shall be deemed to be waived (the “Existing Defaults Waiver”).   

The Borrower acknowledges and agrees that the Existing Defaults Waiver shall not extend to any other default of the Borrower, whether now or hereafter occurring.  The Borrower further acknowledges that the Existing Defaults Waiver (i) relates solely to the Existing Defaults and (ii) does not in any way constitute a consent to or an approval of similar or other actions by the Borrower in the future or constitute a waiver of any other covenant violations by the Borrower at any time.  

		
	4.
	Upon satisfaction of all of the conditions set forth in Paragraph 2 above, the Third Amendment and/or the Loan Agreement shall be deemed to be modified as follows:

		
	(a)
	The “Termination Date” as set forth in Section 2.1 of the Third Amendment is hereby changed to January 5, 

2013.

		
	(b)
	Subparagraphs 5.01(i), 5.01(v), 5.01(w), and  5.01(z) of the Loan Agreement (as set forth in Section 2.5 of the Third Amendment The reference in Section 2.5 of the Third Amendment to Construction Term-Loan Agreement to “Section 5.01” was a typographical error and all references to Section 5.01 in Section 2.5 of the Third Amendment to Construction Term-Loan Agreement should be, and hereby are, modified to be Section “5.02”. ) are hereby deleted and the following new subparagraphs 5.02(i), 5.02(v), 5.02(w) and 5.02(z) are substituted in lieu thereof:

 (i)   Commencing on February 25, 2012 and within twenty-five (25) days after the end of each month, a copy of the compiled monthly financial statement of Borrower that shall include the balance sheet of Borrower as at the end of such month and related statements of income and expenses, statement of changes in financial position, a statement of changes in capital accounts and a statement of allocation of distribution of profits and losses of Borrower, all in reasonable detail, prepared in accordance with GAAP (or tax accounting reconciled to GAAP).  Such statements shall be accompanied by a Covenant Compliance Certificate in the form of Exhibit C to the Loan Agreement.  

(v)   Commencing on February 25, 2012 and within twenty-five (25) days after the end of each month, a comparison of Borrower's monthly actual results to the monthly budgeted and forecast results, in a form satisfactory to Lender. 

(w)    The Borrower shall pay to the Lender for application to the principal balance of the Note that amount equal to fifty percent (50%) of the Borrower's monthly earnings before taxes, depreciation and amortization (“EBTDA”) in excess of $300,000 as shown on the Borrower's monthly financial statements on or before the twenty-fifth day of the following month (the “EBTDA Payment”), with the first EBTDA Payment due on February 25, 2012.  To the extent that the Borrower makes any unscheduled prepayment of principal on the Note (a “Principal Prepayment”), the amount of such Principal Prepayment shall be credited on an accumulated basis to the next EBTDA Payment owed by the Borrower.  By way of example only and not in limitation, if the Borrower makes a $25,000.00 Principal Prepayment on July 31 and a EBTDA Payment in the amount of $15,000.00 is due on August 25, then the EBTDA Payment due on August 25 will be deemed to be satisfied and the remaining $10,000.00 of the July Principal Prepayment will be credited to the next monthly EBTDA Payment that is owed by the Borrower.  

(z)   The Borrower shall maintain at all times (i) a minimum Tangible Net Worth of not less than Two Million Dollars ($2,000,000.00) through June 30, 2012 and (ii) from and after July 1, 2012 a minimum Tangible Net Worth of not less than Two Million Two Hundred Fifty Thousand Dollars ($2,250,000.00).  As used herein "Tangible Net Worth" shall mean unit holders' equity less any assets representing amounts or obligations due from employees, unit holders, insiders and any intangible assets and subordinated debt.  Intangible Assets are those assets, according to GAAP, without physical substance which are classified as having value by carrying such value on the balance sheet of the entity claiming such value.  Intangible assets include, but are not limited to, goodwill, patents, trademarks, organizational costs, copyrights, franchise rights, territory rights, licenses, memberships, exploration rights, processes, and designs.

		
	(c)
	Section 5.02 of the Loan Agreement is hereby amended to add the following new subsections (aa), (bb), (cc) and (dd):

(aa)  Commencing with the Borrower's February, 2012 operations (based on the February 25, 2012 financial reporting), the Borrower shall maintain a Monthly Cash Flow Coverage of not less than 1.0 to 1.0.  “Monthly Cash Flow Coverage” shall mean earnings before depreciation, amortization, interest and taxes divided by the scheduled monthly principal and interest payments on the Note plus interest on the New Revolving Line of Credit.
(bb)  The Borrower shall immediately notify the Lender of any changes in its plant management 

or any decision to excuse management. 

(cc)      Within twenty-five (25) days of each month end, the Borrower will provide to the Lender a narrative summarizing the Borrower's previous monthly activities and operations.

(dd)   Borrower acknowledges and agrees that the provisions relating to financial reporting are a material inducement for Lender to enter into this Addendum.  Borrower shall pay Lender a fee of $250.00 per day (the “Financial Reporting Fee”) for any financial report that is not submitted as required under the provisions of the Loan Agreement, as amended.  Borrower acknowledges that the Financial Reporting Fee is not a penalty but is included to ensure that Lender has current and accurate financial information with respect to the Borrower. 

		
	(d)
	Section 5.03 (Negative Covenants) of the Loan Agreement is hereby amended by adding the following new subparagraph (q):

(q) The Borrower shall not purchase or redeem any of its units, declare or pay any dividends or distributions, except distributions payable solely in its units, make any distribution to members or set aside any funds for any such purpose, without the prior written approval of the Lender.

		
	(e)
	Subsection 5.03(e) of the Loan Agreement is hereby deleted in its entirety and the following new subsection (e) is substituted in lieu thereof:

(e) The Borrower shall not, during the life of the Loan Agreement without the prior written approval of the Lender (which approval shall not be unreasonably withheld), lease, assign, pledge, mortgage, create any security interest in or otherwise encumber or permit to be encumbered any of its assets or become or remain liable in any manner with respect to any indebtedness or contractual liability (including, without limitation, notes, bonds, debentures, loans, guaranties, obligations of partnerships, and pension liabilities, in each case whether or not contingent and whether or not subordinated), except:

(i)    Obligations to the Lender arising under the Loan Documents;

(ii)    Trade accounts payable incurred in the ordinary course of business or unsecured indebtedness (other than for money borrowed or for the purchase of a capital asset) incurred in the ordinary course of business, which becomes due and must be fully satisfied within twelve months after the date on which it is incurred;

(iii)     Unsecured indebtedness which is fully subordinated in right of payment to all of the Borrower's obligations to the Lender pursuant to a subordination agreement accepted or approved in writing by the Lender; 

(iv)     The New Revolving Line of Credit; or

(v)  Until December 31, 2012, the first lien position on all finished biodiesel in favor of Gavilon, LLC as described in Section 3.2 of the Amendment Agreement between Borrower and Gavilon, LLC dated January 11, 2012. 

		
	(f)
	The following provision shall be added at the end of Subsection 6.01(e) of the Loan Agreement following the word “claim”:   “including but not limited to the New Revolving Line of Credit.”

		
	5.
	The Borrower does hereby release and forever discharge the Lender, the other Participants, the prior holders of the Loan Documents and their  officers, agents and employees, successors and assigns from all causes of action, suits, claims and demands of every kind and character, known or unknown, without limit, including any action in law or equity, which the Borrower has  or may ever have had against the them, if the  

circumstances, or any part of the circumstances, giving rise to such cause of action, suit, claim or demand occurred prior to the date of this Addendum.

		
	6.
	Except as modified by this Addendum, all the terms and conditions of the Third Amendment and the Loan Agreement, as amended, shall remain unchanged and in full force and effect.  Borrower acknowledges that the Note is due and payable on the Maturity Date (as defined therein) and that Lender has made no commitment, express or implied, to refinance the obligations owing under the Note on the Maturity Date.

		
	7.
	This Addendum may be executed in one or more identical counterparts, which, when executed by all parties, shall constitute one and the same agreement.

		
	8.
	The Third Amendment and the Loan Agreement, as amended, embodies the entire agreement and understanding between the Borrower and the Lender with respect to the subject matter thereof and supersedes all prior agreements and understandings among such parties with respect to the subject matters thereof.

IMPORTANT: READ BEFORE SIGNING.  THE TERMS OF THIS AGREEMENT SHOULD BE READ CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING ARE ENFORCEABLE.  NO OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN THIS WRITTEN CONTRACT MAY BE LEGALLY ENFORCED.  YOU MAY CHANGE THE TERMS OF THIS AGREEMENT ONLY BY ANOTHER WRITTEN AGREEMENT. THIS NOTICE ALSO APPLIES TO ANY OTHER CREDIT AGREEMENTS (EXCEPT CONSUMER LOANS OR OTHER EXEMPT TRANSACTIONS) NOW IN EFFECT BETWEEN YOU AND THIS LENDER.

IN WITNESS WHEREOF, the parties have executed this Addendum as of the day and year first above written.

	
			
	BORROWER:
	 
	LENDER:

	 
	 
	 

	Iowa Renewable Energy, LLC
	 
	MLIC Asset Holdings LLC, a Delaware limited liability company

	 
	 
	 

	By: /s/ Larry Rippey
	 
	By: Transmountain Land & Livestock Company, a Montana corporation, its Manager

	Name: Larry Rippey
	 
	 

	Its: Chairman & CEO
	 
	By: /s/ Michael Wilson

	 
	 
	Name: Michael Wilson

	By: /s/ Mark A. Cobb
	 
	Title: Vice President

	Name: Mark A. Cobb
	 
	 

	Its: Vice-Chair10.7 - Line of Credit Agmt

	
			
	IOWA RENEWABLE ENERGY, LLC
1701 E 7TH STREET       I0083732    0
WASHINGTON, IA 52353

LENDER'S NAME AND ADDRESS
"I"  includes each borrower above, jointly and severally
	Washington State Bank        Federation Bank
P.O. Box 311                         102 E Main St
Washington, IA 52353            Washington, IA 52353

LENDER'S NAME AND ADDRESS
"You" means the lender, its successors and assigns
	Loan Number 052256 
Date 01-06-2012 
Maturity Date 01-06-2013 
Loan Amount $1,000,000.00 
Renewal of 
L/T/G LOC SAB CI 9605 

For value received, I promise to pay to you, or your order, at your address listed above the PRINCIPAL sum of ONE MILLION AND NO/100___________________________________________ Dollars $ 1,000,000.00 _________________________________________
o Single Advance: I will receive all of this principal sum on ___________. No additional advances are contemplated under this note.
x Multiple Advance: The principal sum shown above is the maximum amount of principal I can borrow under this note. On 01-06-2012_ 
I will receive the amount of $________________________    and future principal advances are contemplated.
     Conditions: The conditions for future advances are AS NEEDED FOR OPFRATING EXPENSES                
o    Open End Credit: You and I agree that I may borrow up to the maximum amount of principal more than one time. This feature is subject to all other conditions and expires on 01062013                .
o    Closed End Credit: You and I agree that I may borrow up to the maximum only one time (and subject to all other conditions).
INTEREST: I agree to pay interest on the outstanding principal balance from 01-06-2012 at the rate of 6.000%  per year until 01-06-2013
o    Variable Rate: This rate may then change as stated below.
o    Index Rate: The future rate will be _______________the following index rate:_________________________________________
______________________________________________________________________________________________________________________________________________________________________________________________________________________________
o    No Index: The future rate will not be subject to any internal or external index. It will be entirely in your control.
o    Frequency and Timing: The rate on this note may change as often as__________________________________________.    A change in the interest rate will take effect ______________________________________________________.
o    Limitations: During the term of this loan, the applicable annual interest rate will not be more than ______________% or less than
___________________________%.  The rate may not change more than________________% each______________________.
Effect of Variable Rate: A change in the interest rate will have the following effect on the payments:    
o    The amount of each scheduled payment will change,    o    The amount of the final payment will change.
o                                                    
ACCRUAL METHOD: Interest will be calculated on a ACTUAL /365 basis.
POST MATURITY RATE: I agree to pay interest on the unpaid balance of this note owing after maturity, and until paid in full, as stated below:
 o    on the same fixed or variable rate basis in effect before maturity (as indicated above).
         o at a rate equal to_________________________________________________________________________________________.
o    LATE CHARGE: If a payment is made more than _____ days after it is due, I agree to pay a late charge of __________________
_______________________________________________________________________________________________________________
o    ADDITIONAL CHARGES: In addition to interest, I agree to pay the following charges which  are  are not included in the principal amount above:____________________________________________________________________________________________.
PAYMENTS: I agree to pay this note as follows:

INTEREST ON THE AMOUNT OF CREDIT OUTSTANDING DUE AT MATURITY AND PRINCIPAL DUE ON 01-06-2013.
 o    Unpaid Interest:  Any accrued interest not paid when due (whether due by reason of a schedule of payments or due because of Lender's demand) will become part of the principal thereafter, and will bear interest at the interest rate in effect from time to time as provided for in this agreement.
ADDITIONAL TERMS: This loan is personally guaranteed by six directors of Iowa Renewable Energy, LLC per written documents
x If checked, this note is a credit agreement subject to Iowa Code § 535.17 and the following notice is applicable to this note.
IMPORTANT: READ BEFORE SIGNING. THE TERMS OF THIS AGREEMENT SHOULD BE READ CAREFULLY BECAUSE ONLY THESE TERMS IN WRITING ARE ENFORCEABLE. NO OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN THIS WRITTEN CONTRACT MAY BE LEGALLY ENFORCED. YOU MAY CHANGE THE TERMS OF THIS AGREEMENT ONLY BY ANOTHER WRITTEN AGREEMENT.

	
		
	o  Security:  This note is separately secured by (describe separate document by type and date):

(This section is for your internal use.  Failure to list a separate security document does not mean the agreement will not secure this note.)
	Purpose:  The purpose of this loan is BUSINESS:  OPERATING LINE OF CREDIT
_______________________________________________________
SIGNATURES:  I AGREE TO THE TERMS OF THIS NOTE (INCLUDING THOSE ON PAGE 2).  I have received a copy on today's date.
IOWA RENEWABLE ENERGY, LLC

/s/  Larry Rippey________________________________________
LARRY RIPPEY, CHAIRMAN OF BOARD

/s/  Mark A. Cobb________________________________________
MARK COBB, VICE CHAIRMAN OF BOARD

	

Signature for Lender

/s/  Steven A. Bohn__________________________________
STEVEN A. BOHN, EXECUTIVE VICE PRESIDENT

/s/  Terry M. Engelken, S.V.P.__________________________

	

______________________________________________________

______________________________________________________

DEFINITIONS: As used on page 1, " " means the terms that apply to this loan. "I," "me" or "my" means each Borrower who signs this note and each other person or legal entity (including guarantors, endorsers, and sureties) who agrees to pay this note (together referred to as "us"). "You" or "your" means the Lender and its successors and assigns.
APPLICABLE LAW: The law of the state of Iowa will govern this note. Any term of this note which is contrary to applicable law will not be effective, unless the law permits you and me to agree to such a variation. If any provision of this agreement cannot be enforced according to its terms, this fact will not affect the enforceability of the remainder of this agreement. No modification of this agreement may be made without your express written consent. Time is of the essence in this agreement.
COMMISSIONS OR OTHER REMUNERATION: I understand and agree that any insurance premiums paid to insurance companies as part of this note will involve money retained by you or paid back to you as commissions or other remuneration.
In addition, I understand and agree that some other payments to third parties as part of this note may also involve money retained by you or paid back to you as commissions or other remuneration.
PAYMENTS: Each payment I make on this note will first reduce the amount I owe you for charges which are neither interest nor principal. The remainder of each payment will then reduce accrued unpaid interest, and then unpaid principal. If you and I agree to a different application of payments, we will describe our agreement on this note. I may prepay a part of, or the entire balance of this loan without penalty, unless we specify to the contrary on this note. Any partial prepayment will not excuse or reduce any later scheduled payment until this note is paid in full (unless, when I make the prepayment, you and I agree in writing to the contrary).
INTEREST: Interest accrues on the principal remaining unpaid from time to time, until paid in full. If I receive the principal in more than one advance, each advance will start to earn interest only when I receive the advance. The interest rate in effect on this note at any given time will apply to the entire principal advanced at that time. You and I may provide in this agreement for accrued interest not paid when due to be added to principal. Notwithstanding anything to the contrary, I do not agree to pay and you do not intend to charge any rate of interest that is higher than the maximum rate of interest you could charge under applicable law for the extension of credit that is agreed to here (either before or after maturity). If any notice of interest accrual is sent and is in error, we mutually agree to correct it, and if you actually collect more interest than allowed by law and this agreement, you agree to refund it to me. 
INDEX RATE: The index will serve only as a device for setting the rate on this note. You do not guarantee by selecting this index, or the margin, that the rate on this note will be the same rate you charge on any other loans or class of loans to me or other borrowers,
ACCRUAL METHOD: The amount of interest that I will pay on this loan will be calculated using the interest rate and accrual method stated on page 1 of this note. For the purpose of interest calculation, the accrual method will determine the number of days in a "year." If no accrual method is stated, then you may use any reasonable accrual method for calculating interest.
POST MATURITY RATE: For purposes of deciding when the "Post Maturity Rate" (shown on page 1) applies, the term "maturity" means the date of the last scheduled payment indicated on page 1 of this note or the date you accelerate payment on the note, whichever is earlier.
SINGLE ADVANCE LOANS: If this is a single advance loan, you and I expect that you will make only one advance of principal. However, you may add other amounts to the principal if you make any payments described in the "PAYMENTS BY LENDER" paragraph below, or if we have agreed that accrued interest not paid when due may be added to principal.
MULTIPLE ADVANCE LOANS: If this is a multiple advance loan, you and I expect that you will make more than one advance of principal. If this is closed end credit, repaying a part of the principal will not entitle me to additional credit,
PAYMENTS BY LENDER: If you are authorized to pay, on my behalf, charges I am obligated to pay (such as property insurance premiums), then you may treat those payments as advances and add them to the unpaid principal under this note, or you may demand immediate payment of the charges.
REAL ESTATE OR RESIDENCE SECURITY: If this note is secured by real estate or a residence that is personal property, the existence of a default and your remedies for such a default will be determined by applicable law, by the    terms of any separate instrument creating the security interest and, to the extent not prohibited by law and not contrary to the terms of the separate security instrument, by the "Default" and "Remedies" paragraphs herein.
 DEFAULT: I will be in default if any one or more of the following occur: (1) I fail to make a payment on time or in the amount due; (2) I fail to keep the property insured, if required; (3) I fail to pay, or keep any promise, on any debt or agreement I have with you; (4) any other creditor of mine attempts to collect any debt I owe him through court proceedings; (5) I die, am declared incompetent, make an assignment for the benefit of creditors, 

or become insolvent (either because my liabilities exceed my assets or I am unable to pay my debts as they become due); (6) I make any written statement or provide any financial information that is untrue or inaccurate at the time it was provided; (7) I do or fail to do something which causes you to believe that you will have difficulty collecting the amount I owe you; (8) any collateral securing this note is used in a manner or for a purpose which threatens confiscation by a legal authority; (9) I change my name or assume an additional name without first notifying you before making such a change; (10) I fail to plant, cultivate and harvest crops in due season; (11) any loan proceeds are used for a purpose that will contribute to excessive erosion of highly erodible land or to the conversion ,of wetlands to produce an agricultural commodity, as further explained in 7 C.F.R. Part 1940, Subpart G, Exhibit M.
REMEDIES: Except as provided in the next paragraph, if this note is secured by agricultural land (as defined in Iowa Code § 172C.1) and I am in default on this note, you will give me notice of my right to cure. You may exercise your remedies only if I fail to cure my default within 45 days after you mail the notice (or 45 days after actual delivery if you use a means other than certified mail).
A notice of right to cure is not necessary and you may immediately exercise your remedies if you have: a) given me the notice with respect to two prior defaults, b) you have given me the notice with respect to a default occurring within 12 months before the current default, or I voluntarily surrender the agricultural land and you accept it in full satisfaction of the debt.
Subject to the above limitations and any limitations imposed by Iowa Code Chapter 654A, if I am in default on this note you have, but are not limited to, the following remedies:
(1)  You may demand immediate payment of all I owe you under this note (principal, accrued unpaid interest and other accrued charges).
(2)  You may set off this debt against any right I have to the payment of money from you, subject to the terms of the "set-off" paragraph herein.
(3)  You may demand security, additional security, or additional parties to be obligated to pay this note as a condition for not using any other remedy.
(4)  You may refuse to make advances to me or allow purchases on credit by me.
(5) You may use any remedy you have under state or federal law.
By selecting any one or more of these remedies you do not give up your right to later use any other remedy. By waiving your right to declare an event to be a default, you do not waive your right to later consider the event as a default if it continues or happens again.
COLLECTION COSTS AND ATTORNEY'S FEES: I agree to pay all costs of collection, replevin or any other or similar type of cost if I am in default. In addition, if you hire an attorney to collect this note, I also agree to pay any fee you incur with such attorney plus court costs (except where prohibited by law). To the extent permitted by the United States Bankruptcy Code, I also agree to pay the reasonable attorney's fees and costs you incur to collect this debt as awarded by any court exercising jurisdiction under the Bankruptcy Code.
WAIVER: I give up my rights to require you to do certain things. I will not require you to:
(1)  demand payment of amounts due (presentment);
(2)  obtain official certification of nonpayment (protest); or
(3)  give notice that amounts due have not been paid (notice of dishonor).
I waive any defenses I have based on suretyship or impairment of collateral.
OBLIGATIONS INDEPENDENT: I understand that I must pay this note even if someone else has also agreed to pay it (by, for example, signing this form or a separate guarantee or endorsement). You may sue me alone, or anyone else who is obligated on this note, or any number of us together, to collect this note. You may, do so without any notice that it has not been paid (notice of dishonor). You may without notice release any party to this agreement without releasing any other party. If you give up any of your rights, with or without notice, it will not affect my duty to pay this note. Any extension of new credit to any of us, or renewal of this note by all or less than all of us will not release me from my duty to pay it. (Of course, you are entitled to only one payment in full.) I agree that you may at your option extend this note or the debt represented by this note, or any portion of the note or debt, from time to time without limit or notice and for any term without affecting my liability for payment of the note. I will not assign my obligation under this agreement without your prior written approval.
FINANCIAL INFORMATION: I agree to provide you, upon request, any financial statement or information you may deem necessary. I warrant that the financial statements and information I provide to you are or will be accurate, correct and complete.
NOTICE: Unless otherwise required by law, any notice to me shall be given by delivering it or by mailing it by first class mail addressed to me at my last known address. My current address is on page 1. I agree to inform you in writing of any change in my address. I will give any notice to you by mailing it first class to your address stated on page 1 of this agreement, or to any other address that you have designated.
CREDIT AGREEMENT: A "credit agreement" under Iowa Code § 535.17 means any contract made or acquired by a lender to loan money or extend credit for any purpose. A "credit agreement" does not mean a contract to extend credit by means of a credit card, or open end credit, or a home equity line of credit.
This note is not subject to Iowa Code § 535.17 if it is a "credit agreement" made primarily for a personal, family, or household purpose where the credit extended is twenty thousand dollars or less.

	
								
	Date of Transaction
	Principal 
advance
	borrower's
initials
(NOT REQUIRED)
	PRINCIPAL
PAYMENTS
	PRINCIPAL 
BALANCE
	INTEREST
RATE
	INTEREST
PAYMENTS
	INTEREST
PAID
THROUGH:

	 
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	$
	%
	$
	 

	 
	$
	 
	$
	$
	%
	$
	 

	 
	$
	 
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	%
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	$
	%
	$
	 

	 
	$
	 
	$
	$
	%
	$
	 

	 
	$
	 
	$
	$
	%
	$
	 

	 
	$
	 
	$
	$
	%
	$

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00199-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00199-of-00352.parquet"}]]