{"id":41099,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/line-of-credit-note-bank-one-arizona-na-and-schuff-steel-co.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"line-of-credit-note-bank-one-arizona-na-and-schuff-steel-co","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/finance\/line-of-credit-note-bank-one-arizona-na-and-schuff-steel-co.html","title":{"rendered":"Line of Credit Note &#8211; Bank One Arizona NA and Schuff Steel Co."},"content":{"rendered":"<pre>\nAPPROVED BY:\nBrad Richards - 269181 COMMERCIAL BANKING CENTER\n                                                                             \n\n________________________________________________________________________________________________\nDept.\/Br # A664     Acc # 7938640663          Comm # 0000042           Note # 00000141    Class\n\n\n________________________________________________________________________________________________\nName  SCHUFF STEEL COMPANY, an Arizona corporation                           Loan   $500,000.00\n\n\n________________________________________________________________________________________________\nRate   *                                  Interest From                      Renewal of Note 59\n\n\n________________________________________________________________________________________________\nCollateral   S\/A EQUIPMENT DTD 9\/15\/94\n\n\n\n________________________________________________________________________________________________\n*BANK ONE, ARIZONA, NA, PRIME RATE PLUS .50% TO MOVE WITH PRIME\n\n\n\n                              BANK ONE, ARIZONA, NA\n                               LINE OF CREDIT NOTE\n                                 (VARIABLE RATE)\n                                                          \nPhoenix, Arizona                                           June 30, 1995\n\n\n         FOR VALUE RECEIVED, the undersigned ('Borrower'), promises to pay on or\nbefore June 30, 1996 to BANK ONE, ARIZONA, NA ('Bank'), or order, the aggregate\nprincipal amount outstanding on Borrower's revolving line of credit as shown on\nBank's records which shall at all times be conclusive and govern, with interest\npayable monthly on the unpaid balance outstanding from time to time at an annual\nrate equal to one-half* percent (0.500%) more than the 'prime rate' of interest\ncharged by Bank One, Arizona, N.A., as such rate shall change from time to time\nduring the term hereof. Interest is to be charged on a daily basis for the\nactual number of days the principal is outstanding from the date of disbursement\nto date of maturity. The rate of interest agreed to shall include the interest\nrate as shown above, in accordance with the terms of this note, plus any\ncompensating balance requirement and any additional charges, costs and fees\nincident to this loan to the extent they are deemed to be interest under\napplicable Arizona law. Bank and Borrower will establish specific instructions\nand procedures by which draws against said credit will be presented for\ndisbursement, but nothing contained herein shall create a duty on the part of\nBank to make said disbursement if Borrower is in default. This note does not\nevidence a revolving line of credit and the undersigned shall not be entitled to\ntotal disbursements hereunder exceeding FIVE HUNDRED THOUSAND AND NO\/100THS\nDOLLARS ($500,000.00). All amounts payable hereunder shall be paid in lawful\nmoney of the United States. Should the rate of interest as calculated under this\nnote exceed that allowed by law, the applicable rate of interest will be the\nmaximum rate of interest allowed by applicable law.\n\n         Principal and interest shall be payable at the Commercial Banking\nCenter office of Bank One, Arizona, NA in Phoenix, Arizona, or at such other\nplace as the holder hereof may designate. At Bank's option, any payments may be\napplied first to accrued interest and then to principal. All past-due payments\nof principal or interest shall bear interest from their due date until paid at a\nrate of interest 2% per annum higher than the interest rate specified above or\n12% per annum, whichever is higher, payable on demand.\n\n         This note shall become immediately due and payable at the option of the\nholder hereof without presentment or demand or any notice to Borrower or any\nother person obligated hereon, upon default in the payment of any of the\nprincipal hereof or any interest thereon when due, or in payment under any other\nagreement between Borrower and Bank, or if any event occurs or condition exists\nwhich authorized the acceleration of the maturity hereof under any security\nagreement, mortgage, deed of trust or other agreement made by Borrower in favor\nof Bank. Failure to exercise this option shall not constitute a waiver of the\nright to exercise the same in the event of any subsequent default.\n\n* SEE ATTACHED ADDENDUM\n\n                                       1\n\n         In the event any holder hereof utilizes the services of an attorney in\nattempting to collect the amounts due hereunder or to enforce the terms hereof\nor of any agreements related to this indebtedness, or if any holder hereof\nbecomes party plaintiff or defendant in any legal proceeding in relation to the\nproperty described in any instrument securing this note or for the recovery or\nprotection of the indebtedness evidenced hereby, Borrower, its successors and\nassigns, shall repay to such holder hereof, on demand, all costs and expenses so\nincurred, including reasonable attorneys' fees, including those costs, expenses\nand attorneys' fees incurred after the filing by or against the Borrower of any\nproceeding under any chapter of the Bankruptcy Act, or similar federal or state\nstatute, and whether incurred in connection with the involvement of any holder\nhereof as creditor in such proceedings or otherwise.\n\n         Borrower and all sureties, endorsers and guarantors of this note waive\ndemand, presentment for payment, notice of nonpayment, protest, notice of\nprotest and all other notice, filing of suit and diligence in collecting this\nnote or the release of any party primarily or secondarily liable hereon and\nfurther agree that it will not be necessary for any holder hereof, in order to\nenforce payment of this note by any of them, to first institute suit or exhaust\nits remedies against any maker or others liable herefor, and consent to any\nextension or postponement of time of payment of this note or any other\nindulgence with respect hereto without notice thereof to any of them.\n\n         Bank and Borrower will establish specific instructions and procedures\nby which draws against said credit will be presented for disbursement, but\nnothing contained herein shall create a duty on the part of Bank to make said\ndisbursement if Borrower is in default.\n\nAddress:\nSCHUFF STEEL COMPANY, an Arizona corporation\nPOST OFFICE BOX 39670\nPHOENIX, AZ 85069\n\n                      SEE ATTACHED ADDENDUM FOR SIGNATURES\n                      DAVID A. SCHUFF, CHAIRMAN\n\n                                  OR\n\n                      SEE ATTACHED ADDENDUM FOR SIGNATURES\n                      SCOTT A. SCHUFF, PRESIDENT\n\nDept.\/Br #A664   Acct# 7938640665   Comm #0000042   Note #00000141 Class\nName SCHUFF STEEL COMPANY, an Arizona corporation Loan $500,000.00\nRate* Interest from June 30, 1995  Renewal of Note 59\n*Bank One, Arizona NA, Prime Rate Plus .50% TO MOVE WITH PRIME\n\n                                       2\n\nADDENDUM TO LINE OF CREDIT NOTE, DATED JUNE 30, 1995, 1995 ('ORIGINAL NOTE'),\n         BETWEEN                       SCHUFF STEEL COMPANY, AN ARIZONA \n         CORPORATION ('BORROWER') AND BANK ONE, ARIZONA, NA, A NATIONAL BANKING\n         ASSOCIATION ('BANK'), IN THE ORIGINAL PRINCIPAL AMOUNT OF $500,000.00.\n\n         This Addendum is hereby incorporated into the Original Note as if fully\nset forth therein. This Addendum and the Original Note shall be read together as\na consistent agreement. To the extent of any necessary inconsistency between the\ntwo, however, the terms and provisions of this Addendum shall control. The\nintegrated agreement of the Original Note and this Addendum is herein called the\nNote.\n\nSECTION 1.  RECITALS.\n\n         1.1 In the Loan Agreement, dated JUNE 30, 1995 ('LOAN AGREEMENT'),\nbetween Borrower and Bank, Bank has agreed to extend to Borrower credit up to\n$500,000.00. Borrower may obtain advances (individually an 'ADVANCE' and\ncollectively the 'ADVANCES') as provided in the Loan Agreement.\n\n         1.2 Interest on Advances, as provided in the Note, is at the rate per\nannum ('VARIABLE RATE') equal to sum of (i) one half percent (0.50%) and (ii)\nthe rate per annum most recently publicly announced by Bank, or its successors,\nin Phoenix, Arizona, as its 'prime rate', as in effect from time to time. The\nVariable Rate will change on each day that the 'prime rate' changes. The 'prime\nrate' is not necessarily the best or lowest rate offered by Bank, and Bank may\nlend to its customers at rates that are at, above, or below its 'prime rate'.\n\n         1.3 Under the Note, the maturity date on which all Advances, interest,\nand any other Amounts payable by Borrower is due and payable is June 30, 1996\n('MATURITY DATE').\n\n         1.4 The purpose of this Addendum is to grant to Borrower the option to\nperiodically make elections (i) to extend the Maturity Date as to a Term-Out\nAmount (as defined below) of the then unpaid advances that are not then a for a\nterm between one and five years from the election and (ii) to select the\nCariable Rate or the Fixed Rate (as defined below) as the interest rate on the\nTerm-Out Amount, all as more specifically provided in this Addendum.\n\nSECTION 2  DEFINITIONS.  As used in the Note:\n\n         'BUSINESS DAY' means a day of the year on which banks are not required\nor authorized to close in Phoenix, Arizona, and, with respect to a Fixed Rate\nLoan Term-Out Amount, a day on which dealings are carried on in the London\ninterbank market.\n\n         'EXTENDED MATURITY DATE' means, as to a Term-Out Amount, the last day\nof the respective Term-Out Period.\n\n         'FIXED RATE' means the rate per annum equal to the sum of (i) two and\nthree-quarters percent (2.75%) per annum, and (ii) the rate of interest\ndetermined by Bank, based on Telerate System reports (Page 3807) or such other\nsource as may be selected by Bank, to be the rate at which deposits in United\nStates dollars are offered by major banks in London, England, to other major\nbanks in the London interbank market at 11:00 a.m. (London, England, local time)\non the first day of the Interest Period for the period in the London interbank\nmarket equal to or next greater than the Interest Period.\n\n         'FIXED RATE LOAN TERM-OUT AMOUNT' means an amount for which a Term-Out\nPeriod (as defined below) is chosen.\n\n         'TERM-OUT PERIOD' means, for each Term-Out Amount, a period of one year\nand no more than five (5) years commencing on the Term-Out Effective Date and\nending on the last day of at least such period, all as selected by borrower as\nprovided herein, provided, however, that:\n\n         (a) Term-Out Periods commencing on the same date shall be of the same\nduration;\n\n         (b) Whenever the last day of any Term-Out Periods would otherwise occur\non a day other than a Business Day, the last day of the Term-Out Period shall be\nextended to occur on the next succeeding Business Day, provided, however, that\nif the extension would cause the last day of the Term-Out Period to occur in the\nnext following calendar month, the last day of the Term-out Period shall occur\non the next preceding Business Day; \n\n\n                                  Page 1 of 3\n\n\n\n\n\n         (c) No Term-Out Period shall extend beyond the June 30, 2002.\n\nSECTION 3  TERM-OUT, PAYMENTS, AND INTEREST RATE.\n\n         3.1 Except to the extent that unpaid Advances are included in a\nTerm-out Amount, interest shall accrue on unpaid Advances at the variable Rate,\nborrower shall pay to Bank accrued and unpaid interest monthly on the date\nspecified in the Note, and Borrower shall pay to Bank all then outstanding\nprincipal, interest thereon, an Other Amounts payable to Bank on the Maturity\nDate.\n\n         3.2 In connection with any Advance, Borrower may elect on any Business\nDay, upon notice that is received by Bank not later than 12:00 p.m. (Phoenix,\nArizona, local time) on such Business Day, that such Advance shall be a Fixed\nRate Term-Out Amount (defined below). Each such notice shall specify (i) the\ndate of such Advance, (ii) the amount of such Advance, and (iii) the Term-Out\nAmount Period . In addition, Borrower may on any Business Day, upon notice that\nis received by Bank not later than 12:00 p.m. (Phoenix, Arizona local time) on\nsuch Business Day, convert any amount previously advanced under the Loan\nAgreement from one type of Loan into the other type of Loan or continue a Fixed\nRate Term-Out as a Fixed Rate Loan for a new Interest Period, provided, that\nBorrower may make an election to convert a Fixed Rate Term-out Amount to a\nVariable Rate Term-Out Amount or to continue a Fixed Rate Term-Out as a Fixed\nRate Amount only on the last day of the Term-Out Period. Each such notice of\nconversion or continuation shall specify (i) the date of such conversion or\ncontinuation, (ii) the amount to be converted or continued, and (iii) if\napplicable, the Term-Out Period. Any Advance not complying with the foregoing\nrequirements for an Advance bearing interest at the Fixed Rate Term-Out Amount\nshall bear interest at the Variable Rate. Any Fixed Rate Term-Out not continued\nas a Fixed Rate Term-Out Amount in compliance with the foregoing requirements\nshall, after the end of the Term-Out Amount, bear interest at the Variable Rate,\nwhether or not Borrower has elected to convert the Fixed Rate Term-Out Amount to\na Variable Rate Loan.\n\n         3.4 Interest at the Variable Rate shall be computed on the basis of a\n365 day year and accrue on a daily basis for the actual number of days elapsed.\nInterest at the Fixed Rate shall be computed on the basis of a 360 day year and\nshall accrue on a daily basis for the actual number of days elapsed.\n\n         3.5 Notwithstanding any provision of the Loan Agreement to the\ncontrary:\n\n             3.5.1 Bank shall be entitled to fund and maintain its funding of\nall or any part of any Fixed Rate Loan Term-Out Amount in any manner it sees\nfit.\n\n             3.5.2 If prior to the commencement of any Term-Out Period, Bank\ndetermines by reason of circumstances affecting the London interbank market,\nadequate and reasonable means do not exist for ascertaining the Fixed Rate for\nsuch Term-Out Period in the manner provided in the definition of 'Fixed Rate',\nthen Bank shall promptly give notice thereof to Borrower and the respective\namount as to which Borrower has requested the Term-Out Amount shall bear\ninterest at the Variable Rate.\n\n             3.5.3 Each Term-Out Amount shall be at least $100,000, provided,\nhowever, that the last Term-Out Amount, may at the option of Borrower, be a\nlesser amount.\n\nSECTION 4. PREPAYMENT AND CONVERSION PREMIUM. Borrower may prepay the\noutstanding principal balance hereof, in whole or in part, at any time prior to\nthe Maturity Date. With any such prepayment of a Fixed Rate Term-Out Amount\nother than extend the maturity date or with a conversion election of a Fixed\nRate Loan to a Variable Rate Loan, in either case other than on the last\nBusiness Day of the Term-Out Period for such Fixed Rate Loan Term-Out Amount\n('INTEREST PERIOD TERMINATION DATE') (whether made voluntarily or involuntarily\nas a result of an acceleration of the Maturity Date or otherwise), Borrower\nshall also pay (a) all accrued and unpaid interest on the principal being\nprepaid, (b) all Other Amounts then due, and (c) a prepayment premium, if any,\nequal to the product of (i) the Average Lost Monthly Interest Income and (ii)\nthe number of months from the date of prepayment to the Term-Out Period\nTermination Date (with any fraction of a month counted as a month), discounted\nto present value at the Discount Rate over a period equal to one-half of the\nnumber of months in (ii) above. At the option of Bank, in its absolute and sole\ndiscretion, any prepayment shall be applied to installments coming due under the\nNote in the inverse order of their due dates.\n\n         As used in this SECTION 4:\n\n         'AVERAGE LOST MONTHLY INTEREST INCOME' means the amount determined by\ndividing (i) the product of the Average Principal and the Lost Rate, by (ii) 12,\nwhere:\n\n                                   Page 2 of 3\n\n\n\n\n\n         'AVERAGE PRINCIPAL' means the amount equal to either (i) one half the\nsum of (A) the amount of principal being prepaid and (B) the amount of principal\nthat is scheduled to be due on the Extended Maturity Date ('BALLOON AMOUNT'), or\n(ii) the amount of principal being prepaid, if such amount is less than the\nBalloon Amount; and\n\n         'LOST RATE' means the rate per annum equal to the percentage, if any,\nby which (i) the yield to maturity of United States Treasury debt obligations\nhaving a maturity date nearest to the Interest Period Termination Date\n('TREASURY OBLIGATIONS') determined as of the first day of the respective\nTerm-Out Period exceeds (ii) the yield to maturity of Treasury Obligations\ndetermined on the date of prepayment.\n\n         'DISCOUNT RATE' means the rate per annum equal to the yield to maturity\nof Treasury Obligations determined on the date of prepayment.\n\n         'OTHER AMOUNTS' means all amounts payable by Borrower to Bank under\nthis Note and all other documents related to any indebtedness of Borrower to\nBank.\n\nThe maturity date and yield to maturity of Treasury Obligations shall be\ndetermined by Bank, in its absolute and sole discretion, on the basis of\nquotations published in The Wall Street Journal or other comparable sources.\n\n         IN WITNESS WHEREOF, this Addendum is executed and appended to the\nOriginal Note as of the date thereof.\n\nDated June 30, 1995\n\n\nSCHUFF STEEL COMPANY\nan Arizona corporation\n\n\n\nBy:_______________________________\nName:  SCOTT A. SCHUFF\nTitle: PRESIDENT\n\n\n                                   Page 3 of 3\n\n\n<\/pre>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_contracts_companies":[6846,8773],"corporate_contracts_industries":[9415,9481],"corporate_contracts_types":[9561,9560],"class_list":["post-41099","corporate_contracts","type-corporate_contracts","status-publish","hentry","corporate_contracts_companies-bank-of-america-corp","corporate_contracts_companies-schuff-international-inc","corporate_contracts_industries-financial__banks","corporate_contracts_industries-construction__specialty","corporate_contracts_types-finance__credit","corporate_contracts_types-finance"],"acf":[],"_links":{"self":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts\/41099","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts"}],"about":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/corporate_contracts"}],"wp:attachment":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=41099"}],"wp:term":[{"taxonomy":"corporate_contracts_companies","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_companies?post=41099"},{"taxonomy":"corporate_contracts_industries","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_industries?post=41099"},{"taxonomy":"corporate_contracts_types","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_types?post=41099"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}