← 783 Leonard St, Akron, OH 44307 · All properties

Lending DAO Agreement - 783 Leonard St, Akron, OH 44307.pdf

This page is a searchable text preview. Use the Dropbox link for the full original file.

Open full file in Dropbox

What This File Appears To Be

PROMISSORY NOTE Loan Amount: $7,900 Loan Date: March 12th, 2024 For value received, the undersigned Lofty Holding 783 Leonard St DAO LLC (the "Borrower"), promises to pay to the order of 783 Leonard Street DAO (the "Lender"), the sum of $7,900 with interest from March 12th, 2024, on the unpaid principal at the rate of thirteen point five percent (13.5%) per annum, compounded monthly. The loan shall be advanced for business purposes in connection with the property located at 783 Leonard St Akron,

Text Preview

PROMISSORY NOTE
Loan Amount: $7,900

Loan Date: March 12th, 2024

For value received, the undersigned Lofty Holding 783 Leonard St DAO LLC (the "Borrower"), promises
to pay to the order of 783 Leonard Street DAO (the "Lender"), the sum of $7,900 with interest from March
12th, 2024, on the unpaid principal at the rate of thirteen point five percent (13.5%) per annum,
compounded monthly. The loan shall be advanced for business purposes in connection with the property
located at 783 Leonard St Akron, OH 44307 (the “Property”) and serviced by Lofty AI, Inc (“Servicer”).
I. TERMS OF REPAYMENT
A. Payments
The unpaid principal and accrued interest shall be payable in monthly installments, beginning on March
12th, 2024, and continuing until March 12th, 2026, (the "Due Date"), at which time the remaining unpaid
principal and interest shall be due in full.
When the Operating Reserve is <50% full, half of all net rental income should go to the Operating Reserve,
and half to pay off the loan; when the Operating Reserve is >=50% full, 100% of net rental income should
be used to pay off the loan
B. Application of Payments
All payments on this Note shall be applied first in payment of accrued interest and any remainder in payment
of principal.
C. Acceleration of Debt
If any payment obligation under this Note is not paid when due, the remaining unpaid principal balance and
any accrued interest shall become due immediately at the option of the Lender.
II. PREPAYMENT
The Borrower reserves the right to prepay this Note (in whole or in part) prior to the Due Date with no
prepayment penalty. Any such prepayment shall be applied against the installments of principal due under
this note in the inverse order of their maturity and shall be accompanied by payment of accrued interest on
the amount prepaid to the date of prepayment.
III. COLLECTION COSTS
If any payment obligation under this Note is not paid when due, the Borrower promises to pay all costs of
collection, including reasonable attorney fees, whether or not a lawsuit is commenced as part of the
collection process.

Doc ID: 8a3a85b3575da6d445b42011209ba6182d915ea3

IV. DEFAULT
If any of the following events of default occur, this Note and any other obligations of the Borrower to the
Lender, shall become due immediately, without demand or notice:
1) the failure of the Borrower to pay the principal and any accrued interest when due;
2) the liquidation, dissolution, incompetency or death of the Borrower;
3) the filing of bankruptcy proceedings involving the Borrower as a debtor;
4) the application for the appointment of a receiver for the Borrower;
5) the making of a general assignment for the benefit of the Borrower's creditors;
6) the insolvency of the Borrower;
7) a misrepresentation by the Borrower to the Lender for the purpose of obtaining or extending credit; or
8) the sale of a material portion of the business or assets of the Borrower.
V. DEFAULT INTEREST
To the extent permitted by law, matured unpaid principal and interest on this Note (whether maturing at the
normal scheduled payment date or maturing by reason of acceleration or otherwise) will bear interest from the
date of maturity until paid at a rate equal to the lesser of: (i) the maximum rate of interest permitted by law,
and (ii) fifteen percent (15%) per annum. To the extent permitted by law, three (3) months of default interest
must be paid within sixty (60) days following maturity. All interest calculated under this Note will be
computed based on an assumption of a 30 day month and 360 day calendar year.
VI.

LIQUIDATION

In the event of a default, Lender shall force Borrower to liquidate the Property via sale, whether on-market or
otherwise, within a six (6)-month period (the “Sale Period”). The Sale Period shall commence immediately. If
the Property is not sold within the Sale Period, either 1) title to the property shall be transferred to the Lender,
whereby Lender will own the Property, or 2) Lender will force a foreclosure through which the property will
be auctioned off to the highest bidder.
For the avoidance of doubt, default interest will continue to accrue on the unpaid principal balance and accrued
interest throughout the cure periods and the Sale Period.
VII.

NOTE EXTENSION

The Due Date of this Note may be extended at Lender’s sole discretion. Should Borrower wish to extend the
Due Date, Borrower will request an extension in writing to Lender no less than 15 [fifteen] days before the
then applicable Due Date. Borrow shall state the proposed extension term in the written request. Lender will
endeavor to approve or reject Borrower’s request within 10 [ten] days of receipt of the request. Failure by
Lender to answer will be deemed a rejection.

Doc ID: 8a3a85b3575da6d445b42011209ba6182d915ea3