Exhibit 10.2
FORM OF
REVOLVING NOTE
_________ __, 2008
$8,000,000.00
American Church Mortgage Company, a Minnesota corporation (the
"Borrower"),
for value received,
hereby promises to pay to the order of
Beacon Bank, a
Minnesota banking
corporation
("Lender"), at the
Lender's principal
place of
business at 19765 Highway Seven, Shorewood, MN 55331, or at such
other place as
may be designated by the holder hereof, in lawful money of the United
States of
America, the principal
sum of Eight Million
Dollars
($8,000,000.00), or
such
lesser amount as may
be advanced from time
to time, together with
interest at
the Wall Street Journal Prime Rate (the "Prime Rate") as such rate is
established from time to time. The Prime Rate is currently 5%. The
interest rate
is subject to a floor of 5%. If the Prime Rate is greater
than 6%, the
interest
rate hereon shall be reduced by 50 basis points, subject to a floor
of 6% (e.g.,
if the Prime Rate is 6.25%, the interest rate hereon shall be equal to 6%;
if
the Prime Rate is 7%, then the interest rate hereon shall be equal to 6.5%).
Interest shall
be due and
payable monthly on the first day of each month
commencing on October 1, 2008. All payments shall be applied
first to interest,
then to reduction of
principal. Interest
shall be calculated on the basis of
actual days
elapsed in a 360 day
year. The entire
unpaid principal and all
accrued and unpaid
interest shall be due
and payable in full on September 12,
2010, or such earlier date as is defined in a Loan and Security
Agreement ("Loan
Agreement") entered
into by and
between Borrower and Lender of even date
herewith. This is a balloon payment.
Pursuant to the terms of the Loan Agreement, principal may be advanced,
repaid and readvanced.
The Loan Agreement contains limitations and restrictions
on advances and other terms and conditions.
Borrower shall pay to
Lender a late charge
of five percent (5%) of any
monthly installment
not received by the
Lender within ten (10)
days after the
installment is
