Item 1.01 Entry into a Material Definitive Agreement
On
Borrowings under the Facility will accrue interest at a variable rate equal to
the Wall Street Journal Prime rate, adjusted monthly, subject to a floor
interest rate of 3.25% per annum. At each loan closing under the Facility, the
borrower shall pay the Lender a commitment fee equal to 0.50% of the applicable
loan amount. Each loan will have an interest-only payment term for twenty-four
months from the applicable loan closing date and all interest and principal
outstanding shall be due and payable in full two years from the applicable loan
closing date. Each loan will be secured by the real estate property acquired and
the associated rental income and payment will be guaranteed by the
Each loan agreement under the Facility will require the borrower to maintain a
debt service coverage ratio of not less than 1.50 to 1.00 over the term of the
loan and will contain customary affirmative covenants, negative covenants and
events of default. Should any event of default occur, the loan commitments under
the Facility may be terminated and any outstanding borrowings, together with
accrued interest, could be declared immediately due and payable. The initial
loan under the Facility must close on or before
The foregoing description of the Facility does not purport to be complete and is subject to, and qualified in its entirety by reference to the full text of the Facility, a copy of which if filed herewith as Exhibit 10.1 and is incorporated herein by reference.
Item 2.03 Creation of a Direct Financial Obligations or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
The information contained under Item 1.01 above is hereby incorporated by reference into this Item 2.03.
Item 7.01. Regulation FD Disclosure.
On
The information provided in Item 7.01 of this Current Report on Form 8-K and in the attached Exhibit 99.1 shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits. Exhibit No. Description 10.1 Commitment for$25 Million Master Credit Facility withAmerican Momentum Bank datedOctober 26, 2021 99.1 Press Release datedOctober 27, 2021 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) 4854-1886-2593.1
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