Exhibit 10.3
NOTICE OF
CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU
MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM
ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE
IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY
NUMBER OR YOUR DRIVER’S LICENSE NUMBER.
EXTENSION OF REAL ESTATE NOTE AND LIEN
KNOW ALL MEN BY THESE PRESENTS:
That SOUTH
PADRE ISLAND DEVELOPMENT, L.L.C. FORMERLY KNOWN AS SOUTH PADRE
ISLAND DEVELOPMENT, L.P., of CAMERON County, Texas,
herein called the undersigned, being legally obligated to pay the
hereinafter described promissory Note and who, if not presently
primarily liable for the payment of said Note, does hereby
expressly assume the payment thereof, said Note being in the
original principal sum of FOUR MILLION AND NO/100THS
($4,000,000.00) dated September 1, 2005, executed by SOUTH
PADRE ISLAND DEVELOPMENT, L.P., payable to the order of TEXAS STATE
BANK and secured by a Deed of Trust dated September 1, 2005,
recorded in Document #00054391, Volume 11785, Pages 36, Official
Records of Cameron County, Texas, said Note and Lien being extended
by Extension of Real Estate Note and Lien dated May 1, 2008,
recorded in Document #2008-00026320, Volume 15134, Page 134, of the
Official Records of Cameron County, Texas; and Extension of Real
Estate Note and Lien dated July 1, 2008, recorded in Document
#2008-00035358, Volume 15295, Page 60, of the Official Records of
Cameron County, Texas; said Note being secured by the liens therein
created or mentioned against the following property,
to-wit:
Lots H43, H44,
H45, H47, H56, H57, H60, H61, H62 of the Harbor Block 7
Subdivision, Town of Laguna Vista, Cameron County, Texas, according
to the map or plat thereof recorded in Cabinet 1, Slot 2550-A, Map
Records, Cameron County, Texas
Lots H63, H64,
H65, H66, H67, H68, H69, H70, H71, H72, H73, H74, B15, B16 and B17
of the Harbor Block 9 Subdivision, Town of Laguna Vista, Cameron
County, Texas, according to the Map or Plat thereof recorded in
Cabinet 1, Slot 2550-B, Map Records, Cameron County,
Texas.
AND who now
desires to extend or rearrange the time or manner of payment of
said Note and to extend and carry forward said liens on said
property, and
WHEREAS,
COMPASS BANK (formerly known as Texas State Bank), the legal
owner and holder of said note and of the liens securing the same,
in consideration of the premises and at the request of the
undersigned, has agreed to extend or rearrange the time or manner
of payment of said note as hereinafter provided;
NOW, THEREFORE,
in consideration of the extension or rearrangement of the time or
manner of payment of said Note as hereinafter set forth by the
legal owner and holder thereof, the undersigned hereby renews said
Note and the indebtedness and promises to pay to the order of
COMPASS BANK , at its office in the City of Harlingen,
Cameron County, Texas, the sum of ONE MILLION FIVE HUNDRED
SEVENTY-NINE THOUSAND SEVEN HUNDRED TWENTY-NINE AND 92/100THS
($1,579,729.92), or the unpaid balance of all payments advanced
hereon from time to time (it being understood that this Note is
intended as a revolving line of credit and the undersigned shall be
entitled to continue to request additional advances on this Note up
to a maximum of $1,579,729.92 in the aggregate), together with
interest thereon at the variable rate of WALL STREET JOURNAL
PRIME INTEREST RATE (WSJ) percentum per annum, provided, however,
that the interest rate prior to maturity shall not at any time be
less than a Floor Rate of Six Percent (6.00%) and not be higher
than a Ceiling Rate of Eighteen percent (18%) percentum per
annum from the date hereof and to accrue on a 360-day year until
maturity. Principal and interest shall be payable
at 115 East Van Buren, Harlingen, Texas 78550
. The principal indebtedness and accrued interest
thereon shall bear interest after maturity at the maximum rate
allowed by law.
The term “Prime Interest Rate” as used in this Note
means a per annum interest rate equal to the “Prime
Rate” as published each day by the Wall Street Journal
in its “Money Rates” section, and if more than one such
rate is published, then the highest such rate on any day when the
Wall Street Journal is not published or a prime rate is not
published under the Money Rates section thereof, then the prime
rate published for the preceding publication date of the Wall
Street Journal shall apply. Should the method of
establishing the prime interest rate, or the publication of such
prime rate, cease or be abolished, then the prime interest rate
used for the balance of the term of this note shall be that
interest rate established, adopted or used by Holder as its prime
or base interest rate. The applicable Note Rate shall be adjusted
with each change in the Prime Rate and shall be effective until the
effective date of the next change in the prime rate.
The unpaid
principal and interest shall be payable as follows:
PRINCIPAL
SHALL BE DUE ON OR BEFORE MAY 1, 2010. INTEREST ACCRUING
ON THE UNPAID PRINCIPAL BALANCE SHALL BE DUE AND PAYABLE MONTHLY
BEGINNING JUNE 1, 2009, AND CONTINUING ON THE SAME DAY OF EACH
CONSECUTIVE MONTH.
THE
REVOLVING LINE OF CREDIT AMOUNT IS BEING CAPPED AT
$1,579,729.92.
Notwithstanding
the terms of extension of maturity
|
