21054_Fayetteville Mixed Use_Attachment 14- Bank Commitment Letter

1111 First Carolina Bank
Hay Street Development Pad, LLC c/o PCH Development Co, LLC 200 North Mangum Street, Suite 200 Durham, North Carolina 27701 Attention: Michael Lemanski
December 1, 2017
Re: $875,000.00 Bridge Loan
Dear Michael:
First Carolina Bank ("Bank") is pleased to extend this commitment to make the loan(s) (the "Loan") described in this letter to the Borrower identified below. The Loan will be made on the terms and conditions set forth in this letter and any attachments to this letter. Bank's commitment set forth in this letter shall be referred to as the "commitment" and this letter shall be referred to as the "commitment letter".
1.General Terms.
Borrower
Guarantors
Loan Amount
Type of Loan
Purpose of Loan
Interest Rate
Hay Street Development Pad, LLC ("Borrower")
As offered by Borrower and accepted by Bank, the payment and performance of Borrower under the Loan and all environmental liabilities associated with the Property (defined below) will be unconditionally guaranteed by Jordan A. Jones, Robert R. Bistry, Roderick A. Dowling and Michael R. Lemanski (each "Guarantor" and collectively, "Guarantors").
Up to $875,000.00; provided, however, that the total amount of the Loan shall in no event exceed (a) seventy percent (70%) of the MAI certified appraised "as is" value of the Property and (b) seventy percent (70%) of the purchase price of the Property, as such value and purchase price are approved by Bank.
The Loan is a short-term bridge loan.
The Loan will provide for the purchase of an approximately I -acre commercial-use tract of land (Parcel ID No. 0437-44-6969) located on the north side of Hay Street, west of the Prince Charles Hotel in Fayetteville, Cumberland County, North Carolina (the "Property") and the payment of certain Bank-approved closing costs in connection therewith.
The Interest Rate for the Loan will be a variable rate per annum equal to the Wall Street Journal Prime Rate (defined below) plus 2.00%. The "Wall Street Journal Prime Rate" is the interest rate published on each business day in The Wall Street Journal as the latest or current "Prime Rate" in the United States. The rate of interest will be adjusted automatically based on