Exhibit 10.36
REVOLVING LINE OF CREDIT NOTE
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| $6,000,000.00 |
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November 30, 2007 |
1. FOR
VALUE RECEIVED, HOMELAND ENERGY SOLUTIONS, LLC, an Iowa
limited liability company (“ Borrower ”), hereby
promises to pay to the order of HOME FEDERAL SAVINGS BANK, a
federally chartered stock savings bank organized under the laws of
the United States (“ Lender ”), the principal
sum of Six Million and No/100ths ($6,000,000.00) Dollars, or so
much thereof as may be advanced to, or for the benefit of, Borrower
and be outstanding, with interest thereon, to be computed on each
advance from the date of its disbursement as set forth herein, and
pursuant to that certain Master Loan Agreement of even date
herewith by and between Lender and Borrower (as the same may be
amended, modified, supplemented, extended or restated from time to
time, the “MLA” ), and pursuant to that certain
Third Supplement to the MLA, of even date herewith, by and between
Lender and Borrower (as it may be amended, modified, supplemented,
extended or restated from time to time, the “Third
Supplement” ), and which remains unpaid, in lawful money
of the United States and immediately available funds. This
Revolving Line of Credit Note (this “ Note ”) is
issued pursuant to the terms and provisions of the MLA and the
Third Supplement and is entitled to all of the benefits provided
for in the MLA and the Third Supplement. All capitalized terms used
and not defined herein shall have the meanings assigned to them in
the MLA and the Third Supplement.
2. The
outstanding principal balance of this Note shall bear interest at a
variable rate determined by Lender to be 325 basis points above the
LIBOR Rate in effect on the date of the first Advance made to
Borrower under this Note. Notwithstanding the foregoing, the rate
of interest under this Note may be adjusted by Lender pursuant to
the provisions of the MLA, the Third Supplement and this
Note.
3. “LIBOR Rate” means the rate (rounded upward to
the nearest sixteenth and adjusted for reserves required on
Eurocurrency Liabilities (as hereinafter defined) for banks subject
to FRB Regulation D (as hereinafter defined) or required by
any other federal law or regulation, quoted by the British Bankers
Association (the “BBA”) at 11:00 a.m. London time
two Banking Days (as hereinafter defined) before the commencement
of the Interest Period for the offering of U.S. Dollar deposits in
the London interbank market for an Interest Period of one month, as
published by Bloomberg or another major information vendor listed
on BBA’s official website. “ Banking Day ”
shall mean a day on which Lender is open for business, dealings in
U.S. dollar deposits are being carried out in the London interbank
market, and banks are open for business in New York City and
London, England. “ Eurocurrency Liabilities ”
has the meaning as set forth in FRB Regulation D. “
FRB Regulation D ” means Regulation D as
promulgated by the Board of Governors of the Federal Reserve
System, 12 CFR Part 204, as amended from time to time.
4. The
rate of interest due hereunder shall initially be determined as of
the Availability Date and shall thereafter be adjusted, as and
when, the LIBOR Rate changes. All such adjustments to the rate of
interest shall be made and become effective as of the first day of
the month following the date of any change in the LIBOR Rate and
shall remain in effect until and including the day immediately
preceding the next such adjustment (each such day hereinafter being
referred to as an “ Adjustment Date ”). All such
adjustments to said rate shall be made and become effective as of
the Adjustment Date, and said rate as adjusted shall remain in
effect until and including the day immediately preceding the next
Adjustment
