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HomeMy WebLinkAboutPledge Agreement PLEDGE AGREEMENT BY CITY OF COLUMBIA HEIGHTS, MINNESOTA, TO UNIONMUTUAL STOCK LIFE INSURANCE CO. OF AMERICA Dated March ~, 1982 PLEDGE AGREEMENT KNOW ALL MEN BY THESE PRESENTS, that: WHEREAS, the City of Columbia Heights, a municipal corporation and political subdivision of the State of Minnesota (the City), has executed a Commercial Development Revenue Note (RUvelson & Associates, Incorporated Project), of even date herewith (the Note), payable to Unionmutual Stock Life Insurance Co. of America, a Maine corporation (the Lender), which Note is in the principal amount of EIGHT HUNDRED TEN THOUSAND DOLLARS ($810,000); and WHEREAS, the City has entered into a Loan Agreement, of even date herewith (the Agreement), with Ruvelson & Associates, Incorporated, a Minnesota corporation (the Borrower), whereby the City will loan the proceeds of said Note to the Borrower and the Borrower will repay the loan upon the terms set forth therein; and WHEREAS, the Lender is desirous and the City is agreeable of further securing the Note issued to the Lender; NOW, THEREFORE, in consideration of ONE DOLLAR ($1.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the City does hereby pledge the City's entire interest in the Agreement, and grant a security interest therein, to the Lender, together with all rights to payment of any kind (except amounts payable to the City under Sections 3.02(2), 4.01, 6.05 and 7.07 thereof) which are now or may hereafter become due at any time, and all rights and remedies which may be available to the City thereunder. Subject to the terms and conditions of the Agreement, the City covenants with the Lender that the City has good right to pledge and grant a security interest in its interest in the Agreement in the manner and form aforesaid and that the City's interest is free and clear of all charges and encumbrances. IN WITNESS WHEREOF, the City has executed this instrument this A1~ day of March, 1982. CITY OF COLUMBIA HEIGHTS, MINNESOTA By ,- (SEAL) And Accepted this q0lJ day of March, 1982. UNIONMUTUAL STOCK LIFE INSURANCE CO. OF AMERICA -~;:/J - By ~'-t ~~ . 9Z(:J:~~~(y;'/7:'g(} ;ts SECOND V~CE PRl!)SIDENT (' y (SEAL) -2-