HomeMy WebLinkAbout0410 4
(b) Failure to pay installments of principal and interest
called for and due under said Note on the first day of each of the
months of March through September, 1977, inclusive, which payments
are presently past due and unpaid.
WHEREAS, the aforesaid defaults have not been cured and each
such default enumerated herein presently exists, and, by virtue _
thereof, Said Note and Mortgage and Security Agreement have been
continuously in default since 1 March 1976, and are presently in
default; and
WHEREAS, on 1 July 1979, the outstanding unpaid principal
indebtedness under Said Note is $2,085,746.59 .and said sum is
presently due and payable, together with additional sums such as
accrued interest and other charges and advances permitted under sai
Note totaling $ , reinafter set forth); and
WHEREAS, Liberty has incurred expenses in .the amount of
$21,155.81 for attorney's fees (through 5 October 1978), title
search expenses, and related expenses with respect to the property
in connection with the foreclosure proceeding and bankruptcy pro-
ceeding instituted by Bears Nest and Costa, and
WHEREAS, Liberty has expended the sum of $44,102.35 to maintain
hazard insurance on the property; and
WHEREAS, the aforesaid sums expended by Liberty are permissible
advances provided for in said Note and, as a consequence, such sums
are presently due and owing and may properly be added to the out-
standing principal indebtedness under Said Note (but are not permis-
~ sible to be added to the aforesaid unpaid principal indebtedness of
$2,085,746.59 for purposes of liability with regard to that certain
Unconditional Guarantee executed by Associated Inns, Inc., Escambia
Inns of Dothan, Inc., Santa Rosa Inns, Inc., Escambia Inns, Inc. and
Etowah Enterprises, Inc. and discussed hereinafter); and
WHEREAS, Bears Nest and/or Costa have agreed (and do hereby
further agree and covenant) to reimburse Liberty in cash at the
closing of the transaction herein contemplated (even if such closing
~ is conditional and in escrow) for outside attorney's fees incurred
by Liberty from and after 5 October 1978 in connection with this
transaction; and
i
OR PACE
6~OK~
-6-