Item 1.01. Entry into Material Definitive Agreement
A loan fee of 5% of the loan amount was paid upon closing of the Greensboro Loan, from proceeds of the loan. The Greensboro Loan bears interest at a rate of the Registrant's cost of funds plus 2% for the twelve months following the date of closing and thereafter at a rate of the Registrant's cost of funds plus 7%. SLD used the funds under the Greensboro Loan to purchase and/or finance the three parcels of land as well as for payment of taxes and fees and hereafter may make up to seven draws per parcel for use to fund construction. SLD also provided an interest escrow of
Payments of interest are due monthly and will be paid from the Interest Escrow until such funds are exhausted, at which time SLD will be obligated to satisfy the interest payments using SLD's own funds. Payments of principal are due upon the Registrant's demand or upon the sale or transfer of all or a portion of any parcel or the sale or transfer of all or a portion of the outstanding principal balance and interest. The Greensboro Loan will be extinguished at such time as the outstanding balance under the Note is zero dollars, and either SLD or the Registrant wishes to terminate the agreement. The Greensboro Loan may be prepaid at any time, in whole or in part, without penalty.
The foregoing discussion of the Greensboro Loan is qualified in its entirety by the Credit Agreement, Note, and related Deed to Secure Debt, attached hereto as Exhibits 10.1 through 10.3.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits. 10.1 Credit Agreement 10.2 Promissory Note 10.3 Deed to Secure Debt