Document:

lfr_Ex10_13_2

		
			Exhibit 10.13.2
		

		
			 
		

		
			FOR RECORDER'S USE ONLY
		

		

		
			 
		

		
			Prepared By: Kim Almer, Business Banking Assistant - Team Lead, Western State Bank, P.O. Box 617, West  Fargo, ND 58078, (701) 277-5003
		

		
			 
		

		
			ADDRESS TAX STATEMENT:
		

		
			LF3 Cedar Rapids, LLC; 1635 43rd Street South, Suite 205; Fargo, ND  58103
		

		
			 
		

		
			RECORDATION REQUESTED BY:
		

		
			Western State Bank, West Fargo, P.O. Box 617, 755 13th Ave E, West Fargo, ND  58078
		

		
			 
		

		
			WHEN RECORDED MAIL TO:
		

		
			Western State Bank,  West Fargo,  P.O. Box 617,  West Fargo, ND  58078
		

		
			 
		

		

		
			 
		

		
			MODIFICATION OF MORTGAGE
		

		
			 
		

		
			The names of all Grantors (sometimes "Grantor ") can be found on page 1 of this Modification. The names of all Grantees (sometimes "Lender ") can be found on page 1 of this Modification. The property address can be found on page 2 of this Modification. The legal description can be found on page 1 of this Modification. The parcel identification number can be found on page 2 of this Modification. The related document or instrument number can be found on page 1 of this Modification.
		

		
			 
		

		
			THIS MODIFICATION OF MORTGAGE dated April 17, 2020, is made and executed between LF3 Cedar Rapids, LLC, a Delaware Limited Liability Company, whose address is 1635 43rd Street South, Suite 205, Fargo, ND  58103 (referred to below as "Grantor") and Western State Bank, whose address is P.O. Box 617, 755 13th Ave E, West Fargo, ND  58078 (referred to below as "Lender").
		

		
			 
		

		
			MORTGAGE. Lender and Grantor have entered into a Mortgage dated  March  15,  2019  (the "Mortgage")  which has been recorded in Linn County, State of Iowa, as follows:
		

		
			 
		

			
					
						 

					
					
						Recording Date:

					
					
						3/6/19 

					
					
						 

				
	
					
						 

					
					
						BK:

					
					
						10305

					
					
						 

				
	
					
						 

					
					
						PG:

					
					
						106

					
					
						 

				
	
					
						 

					
					
						Unique Doc ID:

					
					
						2519080.

					
					
						 

				

		
			 
		

		
			REAL PROPERTY DESCRIPTION. The Mortgage covers the following described real property located in Linn County, State of Iowa:
		

		
			 
		

		
			Lot 9, Milwaukee Industrial Park Ninth Addition to the City of Cedar Rapids, Linn County, Iowa.
		

		
			 
		

		
			 
		

		
			

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						MODIFICATION OF MORTGAGE

				
	

					

						 

					

					

						(Continued)

					

					

						Page 2

				

		

			 

		

		

		
			The  Real Property  or  its address  is commonly  known as    1230  Collins  Road  NE, Cedar  Rapids, IA 52402.   The  Real Property  parcel  identification  number  is  140325200500000.
		

		
			 
		

		
			MODIFICATION. Lender and Grantor hereby modify the Mortgage as follows:
		

		
			 
		

		
			Extend the maturity date from March 1. 2024 to September 1, 2024.
		

		
			 
		

		
			CONTINUING VALIDITY .  Except as expressly modified above, the terms of the original Mortgage shall remain unchanged and in full force and effect and are legally valid, binding, and enforceable in accordance with their respective terms. Consent by  Lender  to  this  Modification  does  not  waive Lender 's right to require strict  performance of the Mortgage as changed above nor obligate Lender to make any future modifications. Nothing in this Modification shall constitute a satisfaction of  the promissory note or other credit agreement secured by the Mortgage (the "Note") . It is the intention of Lender to retain as liable all parties to the Mortgage and all parties, makers and endorsers to the Note, including accommodation parties, unless a party is expressly released by Lender in writing.  Any maker or endorser, including accommodation makers, shall not be released by virtue of this Modification. If any person who signed the original Mortgage does not sign this Modification, then all persons signing below acknowledge that this Modification is given conditionally. based on the representation to Lender that the non-signing person consents to the changes and provisions of this Modification or otherwise will not be released by it .  This waiver  applies not only to any initial extension or modification, but also to all such subsequent actions.
		

		
			 
		

		
			GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS MODIFICATION OF MORTGAGE AND GRANTOR AGREES TO ITS TERMS. THIS MODIFICATION OF MORTGAGE IS DATED APRIL 17, 2020.
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						GRANTOR:

					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						LF3 CEDAR RAPIDS, LLC

					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						LODGING FUND REIT III OP, LP, Sole Member of LF3 Cedar Rapids, LLC

					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						LODGING FUND REIT III, INC., General Partner of Lodging Fund REIT III OP, LP

					
					
						 

				

		
			 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Katie L Cox                                                                     

					
					
						 

				
	
					
						 

					
					
						Katie L Cox. Chief Financial Officer of Lodging Fund REIT 

					
						Ill, Inc.

					
					
						 

				

		
			 
		

		
			 
		

		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						MODIFICATION OF MORTGAGE

				
	

					

						 

					

					

						(Continued)

					

					

						Page 3

				

		

			 

		

	
					
						

					
						LENDER:

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						WESTERN STATE BANK

					
					
						 

				

		
			 
		

		
			 
		

			
					
						 

					
					
						/s/ Ryan Rued

					
					
						 

				
	
					
						 

					
					
						Ryan Rued, VP/Business Banking Officer

					
					
						 

				

		
			 
		

		
			 
		

		

		
			LIMITED LIABILITY COMPANY ACKNOWLEDGMENT
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						STATE OF

					
					
						North Dakota

					
					
						)

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						) SS

					
						 

				
	
					
						COUNTY OF

					
					
						Cass

					
					
						)

				

		
			 
		

		
			This record was acknowledged before me on             April 17                            ,  2020  by Katie L Cox, Chief Financial Officer of Lodging Fund REIT Ill, Inc., General Partner of Lodging Fund REIT Ill OP, LP, Sole Member of LF3 Cedar Rapids, LLC.
		

		
			 
		

			
					
						 

					
					
						/s/ DESARAE PFEIFLE 

				
	
					
						 

					
					
						Notary Public in and for the State of 

					
					
						North Dakota

				
	
					
						 

					
					
						My commission expires

					
					
						Mar. 9, 2022

				

		
			 
		

		

		
			 
		

		
			 
		

		
			

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						MODIFICATION OF MORTGAGE

				
	

					

						 

					

					

						(Continued)

					

					

						Page 4

				

		

			 

		

		

		

		
			LENDER  ACKNOWLEDGMENT
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						STATE OF

					
					
						North Dakota 

					
					
						)

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						) SS

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						COUNTY OF

					
					
						Cass

					
					
						)

				

		
			 
		

		
			This record was acknowledged before me on                        April 17                    ,  2020 by Ryan Rued as VP/Business Banking Officer of Western State Bank.
		

		
			 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						/s/ DESARAE PFEIFLE

				
	
					
						 

					
					
						Notary Public in and for the State of 

					
					
						North Dakota

				
	
					
						 

					
					
						My commission expires

					
					
						Mar. 9, 2022lfr_Ex10_14_1

		
			Exhibit 10.14.1
		

		
			CHANGE IN TERMS AGREEMENT
		

		
			 
		

			
					
						Principal

					
					
						Loan Date

					
					
						Maturity

					
					
						Loan No

					
					
						Call / Coll

					
					
						Account

					
					
						Officer Initials

				
	
					
						$9.444,500.00

					
					
						06-19-2019

					
					
						07-01-2024

					
					
						 

					
					
						8100

					
					
						 

					
					
						403

				
	
					
						References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item.

					
						Any item above containing " • • •" has been omitted due to text length limitations.

				

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Borrower:

					
					
						LF3 Eagan. LLC 

					
					
						Lender:

					
					
						Western State Bank

				
	
					
						 

					
					
						LF3 Eagan TRS. LLC

					
					
						 

					
					
						West Fargo

				
	
					
						 

					
					
						1635 43rd Street South. Suite 205

					
					
						 

					
					
						P.O. Box 617

				
	
					
						 

					
					
						Fargo, ND 58103

					
					
						 

					
					
						755 13th Ave E

				
	
					
						 

					
					
						 

					
					
						 

					
					
						West Fargo. ND 58078

				

		
			 
		

			
					
						 

					
					
						 

				
	
					
						Principal Amount: $9,444,500.00 

					
					
						Date of Agreement: April 17. 2020

				

		
			 
		

		
			DESCRIPTION OF EXISTING INDEBTEDNESS.    Promissory Note number 4011906 dated June 19, 2019 in the original amount of $9,444,500.00 (Draw Down Line of Credit) with a current principal balance of $9,317,589.48 .
		

		
			DESCRIPTION OF CHANGE IN TERMS.
		

		
			1.   CHANGE OF MATURITY DATE. Extend the maturity date of the above listed Promissory Note from July 1, 2024 to January 1, 2025 at which time all outstanding principal plus all accrued unpaid interest will be due.
		

		
			2.   PAYMENT SCHEDULE. Borrower's payment schedule will be changed to the following: 51 monthly payments of principal and interest in the amount of $53,484.01 plus $14,670.00 real estate escrow, beginning October 1, 2020, and continuing on the same day of each month thereafter; 1 final payment of all outstanding principal plus all accrued unpaid interest will be due at maturity.
		

		
			3.   REPLACEMENT RESERVE. Effective the date of this agreement, the 2020 replacement reserve requirement will be waived .  Next replacement reserve funding will occur in 2021 based on 2% of the trailing 12 months of revenues, 6/1/20-5/31 /21 .
		

		
			4.   PAYMENT DEFERRAL DISCLOSURE: Given the unique and unprecedented environment surrounding the COVID-19 pandemic and related economic circumstances, the Lender has agreed to enter into this Payment Deferral and modify the loan terms as set forth herein.  Each Borrower hereby acknowledges and agrees that the Lender's decision to accommodate the Borrower's requested Loan Modification is a one-time decision by the Lender and should COVID-19 continue to negatively impact the Borrower after the date hereof, the Lender has no obligation to enter into any further loan modification .  Furthermore, each Borrower agrees not to assert, and each Borrower hereby forever waives any right to assert, that Lender is obligated in any way after the date hereof to enter into a further loan modification and the Lender expects that all Loan Documents will be strictly complied with by the Borrower after the date hereof. By deferring the payments, Borrower acknowledges that interest will continue to accrue during this deferment period.  Borrower also understands that the final payment of all outstanding principal and interest that will be due at maturity may be larger than the final payment disclosed in the original or subsequently modified Promissory Note. During this deferment, collection of escrow for real estate taxes will also be deferred and an escrow shortage is likely. That shortage will be collected through the next escrow analysis which will provide Borrower with an option to pay the shortage in a lump sum or increase the monthly escrow payment. Nothing herein shall be deemed to waive or forgive any principal or interest under the original or subsequently modified Promissory Note.
		

		
			Given the unique and unprecedented environment surrounding the COVID-19 pandemic and related economic circumstances, Borrower hereby represents and agrees not to disclose to any person or entity except for (a) the signatories hereto, (b) any attorneys and/or agents of the signatories hereto, and (c) any of its officers, partners or investors, any information related to this Change in Terms Agreement without the prior written consent of Lender. Notwithstanding the foregoing, it shall not be considered a breach of this provision for Lender to disclose the terms hereof to local, state and federal authorities, or to make disclosures to any other persons or entities when legally compelled or required to do so. In the event that Borrower is legally compelled to disclose any of the terms hereof, Borrower shall, as soon as possible, but prior to such disclosure, provide written notice to Lender regarding the proposed disclosure, including a copy of the proposed disclosure, if applicable, and also shall provide an explanation of the circumstances compelling such disclosure; to the extent such disclosure must be made, Borrower shall limit the scope of such disclosure to that which is necessary to accomplish the purpose for which the disclosure is made. Borrower further acknowledges that a breach of this provision shall entitle Lender to seek damages or other remedies for such breach at law or in equity. The terms of this section shall survive and continue in full force and effect notwithstanding the termination or expiration of this Change in Terms Agreement.
		

		
			This Agreement shall become effective upon, and only upon, the occurrence of each of the following: (i) execution of this Agreement by Borrower and each and every Guarantor and (ii) delivery of this Agreement signed by Borrower and each and every Guarantor to counsel for Lender.
		

		
			CONTINUING VALIDITY. Except as expressly changed by this Agreement, the terms of the original obligation or obligations, including all agreements evidenced or securing the obligation(s), remain unchanged and in full force and effect. Consent by Lender to this Agreement does not waive Lender's right to strict performance of the obligation(s) as changed, nor obligate Lender to make any future change in terms. Nothing in this Agreement will constitute a satisfaction of the obligation(s). It is the intention of Lender to retain as liable parties all makers and endorsers of the original obligation(s). including accommodation parties, unless a party is expressly released by Lender in writing .  Any maker or endorser, including accommodation makers, will not be released by virtue of this Agreement .  If any person who signed the original obligation does not sign this Agreement below, then all persons signing below acknowledge that this Agreement is given conditionally, based on the representation to Lender that the non-signing party consents to the changes and provisions of this Agreement or otherwise will not be released by it. This waiver applies not only to any initial extension, modification or release, but also to all such subsequent actions .
		

		
			 
		

		
			
		

		
			

		 

		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						CHANGE IN TERMS AGREEMENT

				
	
					
						 

					
					
						(Continued)

					
					
						Page 2

				
	
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		
			PRIOR TO SIGNING THIS AGREEMENT. EACH BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS AGREEMENT.  EACH BORROWER AGREES TO THE TERMS OF THE AGREEMENT.
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						CHANGE IN TERMS SIGNERS:

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						LF3 EAGAN, LLC

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						LODGING FUND REIT Ill OP, LP, Sole Member of LF3 Eagan, LLC

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						LODGING FUND REIT Ill, INC., General Partner of Lodging Fund REIT Ill OP, LP

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Katie Cox

					
					
						 

				
	
					
						 

					
					
						Katie Cox, Chief Financial Officer of Lodging Fund

					
					
						 

				
	
					
						 

					
					
						REIT Ill, INC.

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						LF3 EAGAN TRS, LLC

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						LODGING FUND REIT Ill TRS, INC., Sole Member of LF3 Eagan TRS, LLC

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Katie Cox

					
					
						 

				
	
					
						 

					
					
						Katie Cox, Chief Financial Officer of Lodging Fund

					
					
						 

				
	
					
						 

					
					
						REIT Ill TRS, INC.

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						LODGING FUND REIT Ill TRS, INC.

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Katie Cox

					
					
						 

				
	
					
						 

					
					
						Katie Cox, Chief Financial Officer of Lodging Fund

					
					
						 

				
	
					
						 

					
					
						REIT Ill TRS, INC.

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						LODGING FUND REIT Ill OP, LP

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						LODGING FUND REIT Ill, INC., General Partner of Lodging Fund REIT Ill OP, LP

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Katie Cox

					
					
						 

				
	
					
						 

					
					
						Katie Cox, Chief Financial Officer of Lodging Fund

					
					
						 

				
	
					
						 

					
					
						REIT Ill, INC.

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						LENDER:

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						WESTERN STATE BANK

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Ryan Rued

					
					
						 

				
	
					
						 

					
					
						Ryan Rued, VP/Business Banking Officer

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