Document:

LOAN
AGREEMENT

 

This
loan agreement (“Agreement”) is made this 9th day of April, 2018 by and Alerus Financial, N.A., a banking
institution organized and existing under the laws of the United States, having an address of 2330 South Columbia Road, Grand Forks,
North Dakota 58201 (“Bank”) and American Church Mortgage Company, a Minnesota corporation, having an address of 10400
Yellow Circle Drive, #102, Minnetonka, MN 55343 (“Borrower”), for the purposes of extending to the Borrower a Four
Million ($4,000,000.00) Dollar credit accommodation on the terms and conditions set forth herein.

 

1.       Amount
of Credit/Purpose. The Bank will make a credit accommodation to the Borrower from time to time during the one (1) year
period beginning on the date of this Agreement in an aggregate amount not to exceed at any time outstanding Four Million ($4,000,000.00)
Dollars (“Credit Accommodation”). This Credit Accommodation will be made as set forth herein. 

 

The sole
purpose of the Credit Accommodation is for working capital to enable Borrower to bridge the sale of mortgage bonds and investor’s
certificates in the ordinary course of Borrower’s business. 

 

2.       The
Note. The Borrower's obligation to repay the loans made by the Bank as set forth herein will be evidenced by a promissory
note of even date herewith made by the Borrower in favor of the Bank, in the original principal amount of Four Million ($4,000,000.00)
Dollars (“Note”). The Note must be properly executed by the Borrower and be in form and substance acceptable to the
Bank.

 

3.       Revolving
Loan. The Bank agrees to make loans to the Borrower from time to time from and after the date of this Agreement in an aggregate
amount not to exceed at any time outstanding Four Million ($4,000,000.00) Dollars (“Revolving Loan”). The Borrower
may repay and reborrow pursuant to the terms and conditions of the Revolving Loan, as long as no borrowing causes that dollar limit
to be exceeded and the Borrower is not otherwise in default hereunder. The Revolving Loan shall bear interest at the rate set forth
in the Note. The rate of interest shall initially be determined as of the date of this Agreement and shall thereafter be adjusted
as described in the Note. The unpaid principal and interest balance under the Revolving Loan shall be due and payable in full at
loan maturity as set forth in the Note.

 

4.
Advances and Payments. Each advance pursuant to the Revolving Loan shall be made on at least one (1) bank business
days' prior written notice from the Borrower to the Bank or telephonic request from any person purporting to be authorized to request
such advances on behalf of the Borrower, which notice or request shall specify the date of the requested advance and the amount
thereof. The Bank may disburse the amount of the requested advance by crediting the same to the Borrower's demand deposit account
maintained with the Bank or in such other manner as the Bank and the Borrower may from time to time agree. The Borrower shall be
obligated to repay all such advances notwithstanding the failure of the Bank to receive such confirmation and notwithstanding the
fact that the person requesting same was not in fact authorized so to do. Any request for such an advance, whether written, electronic
or telephonic, shall be deemed to be a representation that the statements set forth in this Agreement are correct. All payments
of principal and interest under the Note (as

 

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defined herein) shall be made to the Bank in immediately available funds. Borrower
agrees that the amount shown on the books and records of the Bank as being the aggregate amount of advances outstanding shall be
prima facie evidence of the principal amount of the Note then outstanding. The Borrower hereby authorizes the Bank, if and
to the extent payment is not promptly made pursuant hereto, to charge against the Borrower's account with the Bank an amount equal
to the accrued interest and fees from time to time due and payable to the Bank pursuant to the Note or hereunder. Whenever any
payment to be made hereunder or under a Note shall be stated to be due on a Saturday, Sunday or a holiday for banks under the laws
of the State of Minnesota, such payment may be made on the next succeeding bank business day, and such extension of time shall
in such case be included in the computation of payment of interest on the Note hereunder.

 

2.       Security.
The Note shall be secured by a Security Agreement (“Security Agreement”) executed by the Borrower granting the security
interest in the following property of the Borrower: all inventory, all equipment, all accounts, all general intangibles, all fixtures
and all other personal property of the Borrower (“Security Interest”). This property is more fully described in the
Security Agreement which shall be executed by the Borrower at the time of execution of this Agreement. The Security Interest shall
extend to property of the type described whether now owned or hereafter acquired.

 

3.       Documentation.
The obligations of the Bank to make the loans hereunder is subject to the conditions precedent that the Bank shall have received
on or before the day of execution of this Agreement all of the following documents, each dated (unless otherwise indicated) such
day, in form and substance satisfactory to the Bank:

 

		a.	The Note, properly executed on behalf of the Borrower.

 

		b.	A certified copy of the resolutions of the Board of Directors
of the Borrower evidencing approval of this Agreement and the Note and other matters contemplated hereby.

 

		c.	Copies of the Articles of Incorporation and Bylaws of the
Borrower, certified by the Secretary of the Borrower as being true and correct copies thereof and signed copies of a certificate
of the Secretary of the Borrower which shall certify the names of the officers of the Borrower authorized to sign other documents
or certificates to be delivered pursuant to this Agreement by the Borrower or any of their officers, together with the true signatures
of such officers. The Bank may conclusively rely on such certificate until it shall receive a further certificate of the Secretaries
or Assistant Secretaries of the Borrower canceling or amending the prior certificate(s) and submitting the signatures of the officers
named in such further certificate(s).

 

		d.	The Security Agreement evidencing the Bank's security interests
hereunder, properly executed on behalf of the Borrower.

 

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4.       Other
Conditions/Loan Covenants. The obligations of the Bank hereunder are further expressly conditioned upon the following:

 

		a.	Financial Statements. Financial statements
of the Borrower shall be provided to the Bank within one-hundred (120) days of the Borrower' fiscal year end during each year that
any part of the Revolving Loan remains unpaid, outstanding or available for advance. Furthermore, the Borrower shall provide the
Bank with interim corporate financial statements to the Bank on a quarterly basis, within sixty (60) days of the end of each quarter.

 

i.
In addition, upon the end of end of each calendar quarter, the Borrower shall provide the Bank with true and correct copies of
Borrower’s aging and listing of all accounts receivable prepared in accordance with generally accepted accounting
principles which itemizes each account debtor by name and addresses and which states the total amount payable to Borrower and contains
a breakdown indicating future amounts due and when due, current amounts due, amounts thirty (30) days past due, sixty (60) days
past due, and ninety (90) or more days past due, and reflecting any credit adjustments, returns or allowances.

 

ii.
Borrower shall provide the Bank with true and correct copies of Borrower’s mortgage/bond loan reports in a form and manner
acceptable to the Bank upon the end of each calendar quarter that any part of the Revolving Loan remains unpaid, outstanding or
available for advance.

 

iii.
Borrower shall provide the Bank such other documentation regarding the Borrower’s business and operations as the bank may
reasonably request from time to time. 

 

		b.	Income Tax Returns. True and correct copies
of the income tax returns of the Borrower shall be provided to the Bank within thirty (30) days of date of filing during each year
during which any part of the Revolving Loan remains unpaid, outstanding or available for advance. 

 

		c.	Depository Relationship. The Borrower at all
times during the term of the Revolving Loan shall maintain its primary banking depository relationship with the Bank.

 

		d.	Loan Records. The Bank may maintain from time
to time, at its discretion, liability records as to any and all loans made or repaid and interest accrued or repaid under this
Agreement. All entries made on any such record shall be presumed correct until Borrower establishes the contrary. On demand by
the Bank, Borrower will admit and certify in writing the exact principal balance which Borrower then asserts to be outstanding
to the Bank for loans under this Agreement. 

 

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		e.	Bank's Attorneys' Fees and Costs. Borrower
shall, on or before the execution hereof, reimburse Bank for all of Bank's attorneys' fees and costs incurred by the Bank in drafting
this Agreement and related documents or negotiating its terms with the parties. 

 

		f.	Origination Fee. Borrower acknowledges and
agrees that it is paying an origination fee to the Bank of Twenty-Thousand ($20,000.00) Dollars, which origination fee shall be
due and paid in full upon closing of the Revolving Loan. 

 

		g.	Further Covenants. At all time that any part of the Revolving Loan remains unpaid,
outstanding or available for advance, Borrower shall pay no quarterly dividend to shareholders unless all payments due on the Revolving
Loan have been met.

 

		h.	Revolving Loan Reduced to Zero Annually. The
Borrower shall reduce the balance of the Revolving Loan to zero ($0.00) Dollars for a minimum of thirty (30) days in each calendar
year that the Loan remains outstanding. 

 

5.       Representations
and Warranties. In consideration of this Agreement, the Borrower represents and warrants to the Bank as follows:

 

		a.	Corporate Existence and Power. The Borrower
is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Minnesota, and is duly
licensed or qualified to transact business in all jurisdictions where the character of the property owned or leased or the nature
of the business transacted by them makes such licensing or qualification necessary. The Borrower has all requisite power and authority,
corporate or otherwise, to conduct its businesses, to own its property and to execute and deliver, and to perform all of its obligations
under this Agreement, the Note and the Security Agreement.

 

		b.	Authorization of Borrowing; No Conflict as to Law or
Agreements. The execution, delivery and performance by the Borrower of this Agreement, the Note and the Security
Agreement and the borrowings from time to time hereunder have been duly authorized by all necessary corporate action and do and
will not: 

 

		i.	require any consent or approval of the stockholders of the
Borrower, or any authorization, consent or approval by any governmental department, commission, board, bureau, agency or instrumentality,
domestic or foreign;

 

		ii.	violate any provision of any law, rule or regulation (including,
without limitation, Regulation X of the Board of Governors of the Federal Reserve System) or of any order, writ, injunction or
decree presently in effect having applicability to the Borrower or to the Articles of Incorporation or Bylaws of the Borrower;

 

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		iii.	result in a breach of or constitute a default under any indenture
or loan or credit agreement or any other agreement, lease or instrument to which the Borrower is a party or by which they or their
properties may be bound or affected; or

 

		iv.	result in, or require, the creation or imposition of any
mortgage, deed of trust, pledge, lien, security interest or other charge or encumbrance of any nature (other than the Security
Agreement) upon or with respect to any of the properties now owned or hereafter acquired by the Borrower.

 

		c.	Legal Agreements. This Agreement, the
Security Agreement and the Note, constitute the legal, valid and binding obligations of the Borrower enforceable against the Borrower
in accordance with their respective terms.

 

		d.	Financial Condition. The Borrower has previously
furnished the following financial statements to the Bank: company prepared Fiscal Year ending December 31, 2016, and December 31,
2017. Such balance sheets and income statements fairly present the financial conditions of the Borrower on the dates thereof and
the results of its operations for the periods then ended, and were prepared in accordance with generally accepted accounting principles.

 

		e.	Adverse Change. There has been no material
adverse change in the business, properties or condition (financial or otherwise) of the Borrower since the date of the latest financial
statements referred to in paragraph 8(d).

 

		f.	Litigation. There are no actions, suits
or proceedings pending or, to the knowledge of the Borrower, threatened against or affecting the Borrower or the properties of
the Borrower before any court or governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign,
which, if determined adversely to the Borrower, would have a material adverse effect on the financial condition, properties, or
operations of the Borrower.

 

		g.	Federal Reserve System Regulations.
The Borrower is not engaged in the business of extending credit for the purpose of purchasing or carrying margin stock (within
the meaning of Regulation U of the Board of Governors of the Federal Reserve System), and no part of the proceeds of any advance
will be used to purchase or carry any margin stock or to extend credit to others for the purpose of purchasing or carrying any
margin stock. Borrower will not directly or indirectly invest all or any part of the proceeds of the Loan in any security
subject to the margin requirements of Regulations G, T, U, or X of the Board of Governors of the Federal Reserve System or use
all or any part of proceeds of the Loan to reduce or retire any indebtedness which was originally incurred to purchase any margin
securities or for any other purpose which would violate any of the margin regulations of the Board of Governors of the Federal
Reserve System.

 

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		h.	Investment Company Act. Borrower is not, and
is not directly or indirectly controlled by, or acting on behalf of, any person which is, an “Investment Company” within
the meaning of the Investment Company Act of 1940, as amended.

 

		i.	Taxes. The Borrower has filed all federal,
state and local tax returns which to the knowledge of the officers of the Borrower is required to be filed, and the Borrower has
paid or caused to be paid to the respective taxing authorities all taxes as shown on said returns or on any assessment received
by them to the extent such taxes have become due.

 

		j.	Titles and Liens. The Borrower has good
title to each of the properties and assets reflected in the latest balance sheet referred to in paragraph 8(d) above, free and
clear of all mortgages, security interests, liens and encumbrances, except for mortgages, security interests and liens in favor
of any senior lender or loan described in such financial statements and other covenants, restrictions, rights, and minor irregularities
in title which do not materially interfere with the business or operations of the Borrower as presently conducted.

 

6.       Default
and Termination. The obligations of the Bank to advance funds pursuant to the Revolving Loan shall automatically terminate
without any notice should a petition be filed by or against the Borrower under the United States Bankruptcy Code. The Bank also
retains the option to terminate its obligations pursuant to the Revolving Loan without any notice to the Borrower:

 

		a.	If any default in the performance, or breach, of any covenant
or agreement on the part of Borrower contained in this Agreement, the Note or the Security Agreement occurs.

 

		b.	If the Borrower fails to pay when due any indebtedness, the
Borrower may owe for money borrowed.

 

		c.	If a garnishment summons or writ of attachment is issued
against or served upon the Bank for the attachment of any of the Borrower’s property in the Bank's possession or any indebtedness
owing to the Borrower.

 

		d.	If the Borrower submits to the Bank any credit application
or financial statement containing any information which shall prove to have been incorrect in any respect when made, or if any
of the warranties, representations or covenants of the Borrower to the Bank herein or elsewhere shall prove to have been inaccurate
in any material respect when made.

 

		e.	If the Borrower ceases to be actively engaged in the business
the Borrower is presently engaged in.

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		f.	If adverse conditions develop at any time affecting the Borrower’s
affairs, financial or otherwise, and the Bank in good faith determines that such adverse conditions impair the due and punctual
payment of the Note or any future advances that might be made pursuant to the Revolving Loan.

 

7.       No
Waiver; Cumulative Remedies. No failure or delay on the part of the Bank in exercising any right, power or remedy hereunder
or under the Security Agreement shall operate as a waiver thereof; nor shall any single or partial exercise of any such right,
power or remedy preclude any other or further exercise thereof or the exercise of any other right, power or remedy hereunder or
under the Security Agreement. The remedies herein and in the Security Agreement provided are cumulative and not exclusive of any
remedies provided by law.

 

8.       Amendments,
Etc. No amendment, modification, termination or waiver of any provision of this Agreement, the Security Agreement or the
Note or consent by the Borrower to any departure therefrom shall be effective unless the same shall be in writing and signed by
the Bank and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which
given. No notice to or demand on the Borrower in any case shall entitle the Borrower to any other or further notice or demand in
similar or other circumstances.

 

9.       Addresses
for Notices, Etc. Except as otherwise expressly provided herein, all notices, requests, demands and other communications
provided for hereunder and under the Security Agreement shall be in writing and mailed or delivered to the applicable party at
its address indicated below:

 

If
to the Borrower:

 

American
Church Mortgage Company

10400
Yellow Circle Drive, #102

Minneapolis,
MN 55343

 

If
to the Bank:

 

Alerus
Financial, N.A.

2330 South Columbia Road

Grand
Forks, North Dakota 58201

 

or,
as to each party, at such other address as shall be designated by such party in a written notice to the other party complying
as to delivery with the terms of this section. All such notices, requests, demands and other communications shall, when mailed,
be effective when deposited in the mail, addressed as aforesaid.

 

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10.       Binding
Effect, Assignment. This Agreement and the Security Agreement shall be binding upon and inure to the benefit of the Borrower
and the Bank and their respective successors and assigns, except that the Borrower shall not have the right to assign their rights
hereunder or thereunder or any interest herein or therein without the prior written consent of the Bank.

 

11.       Governing
Law. This Agreement, the Note and the Security Agreement shall be governed by, and construed in accordance with, the laws
of the State of Minnesota.

 

12.       Severability
of Provisions. Any provision of this Agreement which is prohibited or unenforceable shall be ineffective to the extent
of such prohibition or unenforceability without invalidating the remaining provisions hereof.

 

13.       Headings.
Section headings in this Agreement are included herein for convenience of reference only and shall not constitute a part of this
Agreement for any other purpose.

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective officers thereunto duly authorized,
as of the date first above written.

 

 

BORROWER:

 

AMERICAN CHURCH MORTGAGE 

COMPANY, a Minnesota corporation

 

 

By:_________________________

 

Its:
_President_________________ 

 

 

 

BANK:

 

ALERUS
FINANCIAL, N.A.

 

 

By:_________________________

 

Its:
_Market President__________

 

 

 

 

 

    	 	8PROMISSORY NOTE

 

	Borrower:	
        American Church Mortgage Company

        10400 Yellow Circle Dr Ste
        102

        Minnetonka, MN 55343
	Lender:	
        Alerus Financial, N.A.

        2300 S Columbia Rd

        Grand Forks, ND 58201

        (800) 279-3200

 

	Principal Amount:  $4,000,000.00	Date of Note:  April 9, 2018

 

PROMISE TO PAY. American
Church Mortgage Company ("Borrower") promises to pay to Alerus Financial, N.A. ("Lender"), or order, in lawful
money of the United States of America, the principal amount of Four Million & 00/100 Dollars ($4,000,000.00) or so much as
may be outstanding, together with interest on the unpaid outstanding principal balance of each advance. Interest shall be calculated
from the date of each advance until repayment of each advance.

PAYMENT. Borrower will pay
this loan in one payment of all outstanding principal plus all accrued unpaid interest on April 9, 2019. In addition, Borrower
will pay regular monthly payments of all accrued unpaid interest due as of each payment date, beginning May 1, 2018, with all subsequent
interest payments to be due on the same day of each month after that. Unless otherwise agreed or required by applicable law, payments
will be applied first to any accrued unpaid interest; then to principal; then to any late charges; then to any escrow or reserve
account payments as required under any mortgage, deed of trust, or other security instrument or security agreement securing this
Note; and then to any unpaid collection costs. 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 independent index
which is the prevailing London Interbank Offered Rate (LIBOR) for deposits in U.S. dollars having a maturity equal to one month
(the “Index”)
as published by Bloomberg Financial Markets Information Services (the "Index"). The Index is not necessarily the lowest
rate charged by Lender on its loans. If the Index becomes unavailable during the term of this loan, Lender may designate a substitute
index after notifying Borrower. Lender will tell Borrower the current Index rate upon Borrower's request. The interest rate change
will not occur more often than each month. Borrower understands that Lender may make loans based on other rates as well. The
Index currently is 1.883% per annum. Interest on the unpaid principal balance of this Note will be calculated as described
in the "INTEREST CALCULATION METHOD" paragraph using a rate of 2.700 percentage points over the Index, rounded to the
nearest 0.001 percent, adjusted if necessary for any minimum and maximum rate limitations described below, resulting in an initial
rate of 4.583%. NOTICE: Under no circumstances will the interest rate on this Note be less than 4.250% per annum or more than the
maximum rate allowed by applicable law.

INTEREST CALCULATION METHOD.
Interest on this Note is computed on a 365/360 basis; that is, by applying the ratio of the 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.
All interest payable under this Note is computed using this method.

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 of accrued unpaid interest. Rather, early
payments will reduce the principal balance due. 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: Alerus Financial, N.A., Main Office, P.O. Box 6001 Grand Forks, ND 58206-6001.

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 $500.00,
whichever is less.

INTEREST AFTER DEFAULT.
Upon default, including failure to pay upon final maturity, the total sum due under this Note will continue to accrue interest
at the interest rate under this Note. 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.

Default in Favor of
Third Parties. Borrower or any Grantor defaults under any loan, extension of credit, security agreement, purchase or sales
agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Borrower's property
or Borrower's ability to repay this Note or perform Borrower's obligations under this Note or any of the related documents.

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.

Insolvency. The
dissolution or termination of Borrower's existence as a going business, the insolvency of Borrower, the appointment of a receiver
for any part of Borrower's property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement
of any proceeding under any bankruptcy or insolvency laws by or against Borrower.

Creditor or Forfeiture
Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession
or any other method, by any creditor of Borrower or by any governmental agency against any collateral securing the loan. This includes
a garnishment of any of Borrower's accounts, including deposit accounts, with Lender. However, this Event of Default shall not
apply if there is a good faith dispute by Borrower as to the validity or reasonableness of the claim which is the basis of the
creditor or forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits
with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion,
as being an adequate reserve or bond for the dispute.

Events Affecting Guarantor.
Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accommodation party of any of the indebtedness
or any guarantor, endorser, surety, or accommodation party dies or becomes incompetent, or revokes or disputes the validity of,
or liability under, any guaranty of the indebtedness evidenced by this Note.

Change In Ownership.
Any change in ownership of twenty-five percent (25%) or more of the common stock of Borrower.

Adverse Change.
A material adverse change occurs in Borrower's financial condition, or Lender believes the prospect of payment or performance of
this Note is impaired.

Insecurity. Lender
in good faith believes itself insecure.

DEPOSIT ACCOUNT SECURITY
INTEREST. In addition to other collateral, if any, that may secure this Note, Grantor grants to Lender a security interest
in all Deposit Accounts including but not limited to: Checking Accounts, Time Accounts, Savings Accounts and other similar Accounts.

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.

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 reasonable attorneys' fees and Lender's legal expenses, whether
or not there is a lawsuit, including reasonable 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.

GOVERNING LAW. This Note
will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the State of
Minnesota without regard to its conflicts of law provisions. This Note has been accepted by Lender in the State of Minnesota.

CHOICE OF VENUE. If there
is a lawsuit, Borrower agrees upon Lender's request to submit to the jurisdiction of the courts of Hennepin County, State of Minnesota.

DISHONORED ITEM FEE.
Borrower will pay a fee to Lender of $29.00 if Borrower makes a payment on Borrower's loan and the check or preauthorized charge
with which Borrower pays is later dishonored.

RIGHT OF SETOFF. To the
extent permitted by applicable law, Lender reserves a right of setoff in all Borrower's accounts with Lender (whether checking,
savings, or some other account). This includes all accounts Borrower holds jointly with someone else and all accounts Borrower
may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for which setoff would
be prohibited by law. Borrower authorizes Lender, to the extent permitted by applicable law, to charge or setoff all sums owing
on the indebtedness against any and all such accounts, and, at Lender's option, to administratively freeze all such accounts to
allow Lender to protect Lender's charge and setoff rights provided in this paragraph.

LINE OF CREDIT. This
Note evidences a revolving line of credit. Advances under this Note may be requested either orally or in writing by Borrower or
as provided in this paragraph. Lender may, but need not, require that all oral requests be confirmed in writing. All communications,
instructions, or directions by telephone or otherwise to Lender are to be directed to Lender's office shown above. The following
person or persons are authorized to request advances and authorize payments under the line of credit until Lender receives from
Borrower, at Lender's address shown above, written notice of revocation of such authority: Advances may be requested by: Philip
J Myers or Scott J Marquis. Borrower agrees to be liable for all sums either: (A) advanced in accordance with the instructions
of an authorized person or (B) credited to any of Borrower's accounts with Lender. The unpaid principal balance owing on this Note
at any time may be evidenced by endorsements on this Note or by Lender's internal records, including daily computer print-outs.
Lender will have no obligation to advance funds under this Note if: (A) Borrower or any guarantor is in default under the terms
of this Note or any agreement that Borrower or any guarantor has with Lender, including any agreement made in connection with the
signing of this Note; (B) Borrower or any guarantor ceases doing business or is insolvent; (C) any guarantor seeks, claims or otherwise
attempts to limit, modify or revoke such guarantor's guarantee of this Note or any other loan with Lender; (D) Borrower has applied
funds provided pursuant to this Note for purposes other than those authorized by Lender; or (E) Lender in good faith believes itself
insecure.

SUCCESSOR INTERESTS.
The terms of this Note shall be binding upon Borrower, and upon Borrower's heirs, personal representatives, successors and assigns,
and shall inure to the benefit of Lender and its successors and assigns.

ERRORS AND OMISSIONS.
Borrower agrees, if requested by Lender, to fully cooperate in the correction, if necessary, in the reasonable discretion of Lender
of any and all loan closing documents so that all documents accurately describe the loan between Lender and Borrower. Borrower
agrees to assume all costs including by way of illustration and not limitation, actual expenses, legal fees and marketing losses
for failing to reasonably comply with Lenders request within thirty (30) days.

GENERAL PROVISIONS. If
any part of this Note cannot be enforced, this fact will not affect the rest of the Note. Lender may delay or forgo enforcing any
of its rights or remedies under this Note without losing them. In addition, Lender shall have all the rights and remedies provided
in the related documents or available at law, in equity, or otherwise. Except as may be prohibited by applicable law, all of Lender's
rights and remedies shall be cumulative and may be exercised singularly or concurrently. Election by Lender to pursue any remedy
shall not exclude pursuit of any other remedy, and an election to make expenditures or to take action to perform an obligation
of Borrower shall not affect Lender's right to declare a default and to exercise its rights and remedies. 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.

SECTION DISCLOSURE. To
the extent not preempted by federal law, this loan is made under Minnesota Statutes, Section 48.195.

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:

AMERICAN CHURCH MORTGAGE COMPANY

 

By: _____________________________________________

Philip J Myers, President
of American Church Mortgage Company

LaserPro, Ver. 17.4.10.006
Copr. D+H USA Corporation 1997, 2018. All Rights Reserved. - MN L:\CFI\LPL\D20.FC TR-10128 PR-4 (M)

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