EXHIBIT 10.17
REVOLVING LINE OF CREDIT NOTE
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$1,000,000.00
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Minneapolis, Minnesota
October 1, 2004
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FOR
VALUE RECEIVED, the undersigned UNITED FINANCIAL CORP.
(“Borrower”) promises to pay to the order of WELLS
FARGO BANK, NATIONAL ASSOCIATION (“Bank”) at its office
at Correspondent Banking Minnesota Officer at 6th and Marquette
Minneapolis, Minnesota, 55479 or at such other place as the holder
hereof may designate, in lawful money of the United States of
America and in immediately available funds, the principal sum of
One Million Dollars ($1,000,000.00), or so much thereof as may be
advanced and be outstanding, with interest thereon, to be computed
on each advance from the date of its disbursement as set forth
herein.
INTEREST:
(a)
Interest . The outstanding principal
balance of this Note shall bear interest (computed on the basis of
360-day year, actual days elapsed) at a rate per annum one and
one-half percent (1.50%) above the Fed Funds Rate in effect from
time to time. The term “Fed Funds Rate” means a
fluctuating interest rate per annum set by Bank at approximately
noon each business day as the rate at which funds are offered to
Bank by Federal funds brokers. Borrower understands and agrees that
Bank may base its quotation upon recognized market sources,
including such quotes as are received by Bank from Federal funds
brokers of recognized standing selected by it.
(b)
Payment of Interest . Interest accrued on
this Note shall be payable on the last day of each March, June,
September and December, commencing December 31, 2004.
(c)
Default Interest . From and after the
maturity date of this Note, or such earlier date as all principal
owing hereunder becomes due and payable by acceleration or
otherwise, the outstanding principal balance of this Note shall
bear interest until paid in full at an increased rate per annum
(computed on the basis of a 360-day year, actual days elapsed)
equals to four percent (4%) above the rate of interest from time to
time applicable to this Note.
BORROWING AND
REPAYMENT:
(a)
Borrowing and Repayment . Borrower may from
time to time during the term of this Note borrow, partially or
wholly repay its outstanding borrowings, and reborrow, subject to
all of the limitations, terms and conditions of this Note and of
any document executed in connection with or governing this Note;
provided however, that the total outstanding borrowings under this
Note shall not at any time exceed the principal amount stated
above. The unpaid principal balance of this obligation at any time
shall be the total amounts advanced hereunder by the holder hereof
less the amount of principal payments made hereon by or for any
Borrower, which balance may be endorsed hereon from time to time by
the holder. The outstanding principal balance of this Note shall be
due and payment in full on November 1, 2005.
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(b)
Advances . Advances hereunder, to the total
amount of the principal sum stated above, may be made by the holder
at the oral or written request of (i) Kurt R. Weise or, ant one
acting alone, who are authorized to request advances and direct the
disposition of any advances until written notice of the revocation
of such authority is received by the holder at the office
designated above, or (ii) any person, with respect to advances
deposited to the credit of any deposit account of any Borrower,
which advances, when so deposited, shall be conclusively presumed
to have been made to or for the benefit of each Borrower regardless
of the fact that persons other than those authorized to request
advances may have authority to draw against such account. The
holder shall have no obligation to determine whether any person
requesting an advance is or has been authorized by any
Borrower.
(c)
Application of Payments . Each payment made
on this Note shall be credited first, to any interest then due and
second, to the outstanding principal balance hereof.
EVENTS OF DEFAULT:
This
Note is made pursuant to and is subject to the terms and conditions
of that certain Credit Agreement between Borrower and Bank dated as
of October 30, 2002, a
