ELECTRONICALLY FILED
`Pulaski County Circuit Court
`Terri Hollingsworth, Circuit/County Clerk
`2021-Mar-30 16:12:21
`60CV-21-2103
`C06D04 : 24 Pages
`IN THE CIRCUIT COURT OF PULASKI COUNTY, ARKANSAS
`_____ DIVISION
`
`ARVEST BANK
`
`PLAINTIFF
`
`VS.
`
`
`
`CASE NO. CV 21-______
`
`BEEFAM, LLC and
`BONERTS MV, LLC
`
` DEFENDANTS
`
`FORECLOSURE COMPLAINT
`
`Comes now Arvest Bank (“Arvest”), by and through its attorneys, Kutak Rock LLP and
`
`for its Foreclosure Complaint (“Complaint”) against the defendants above-named states as
`
`follows:
`
`PARTIES, JURISDICTION AND VENUE
`
`1.
`
`Arvest is an Arkansas state bank with an office located at 425 West Capitol
`
`Avenue, Little Rock, Pulaski County, Arkansas.
`
`2.
`
`Defendant Beefam, LLC (“Beefam”) is a California limited liability company
`
`qualified to do business in the state of Arkansas whose agent for service of process is
`
`Corporation Service Company, 300 Spring Building, Suite 300, 300 S. Spring Street, Little
`
`Rock, AR 72201.
`
`3.
`
`Defendant Bonerts MV, LLC (“Bonerts”) is a California limited liability company
`
`qualified to do business in the state of Arkansas whose agent for service of process is
`
`Corporation Service Company, 300 Spring Building, Suite 300, 300 S. Spring Street, Little
`
`Rock, AR 72201.
`
`4833-7179-4915.1
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`

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`4.
`
`Jurisdiction is proper in this Court. Venue is proper in this Court pursuant to Ark
`
`Code Ann. § 16-55-213.
`
`5.
`
`On February 21, 2017, Beefam and Bonerts (jointly, “Borrowers”) jointly and
`
`severally executed their Promissory Note (“Note”) payable to the order of Arvest in the original
`
`principal sum of Two Million Nine Hundred Fifty Thousand and 00/100 Dollars ($2,950,000.00)
`
`bearing interest at the rate recited in the Note. The Note was to be paid in full on February 22,
`
`2027, at which time the entire principal balance and accrued interest were due and payable in
`
`full. A copy of the Note is attached hereto and marked as Exhibit “A” and is made a part hereof
`
`as though set out fully herein word for word.
`
`6.
`
`Payment of the Note is secured by a Mortgage jointly executed by Borrowers on
`
`February 22, 2017, covering the following described real property located in Little Rock, Pulaski
`
`County, Arkansas, to wit (“Property”):
`
`Lot 3, Tract 5, Chenal Valley, an Addition to the city of Little Rock,
`Pulaski County, Arkansas.
`
`Together with those non-exclusive beneficial easements as contained in
`Declaration of Reciprocal Easement, Covenants and Restriction made as
`of the 17ty day of September 2007 by Little Rock Development Company,
`LLC, filed for record on October 16, 2007 and recorded as Instrument No.
`2007080710, records of Pulaski County, Arkansas for, among other things,
`parking, access, roof overhang and abutment, access for signage, drainage
`and utilities over the common areas and drives of the Promenade at
`Chenal Shopping Center.
`
`The Mortgage was filed of record in the office of the Circuit Clerk and Ex-Officio
`
`Recorder of Pulaski County, Arkansas on February 27, 2017, as Instrument No. 2017012390.
`
`A copy of the Mortgage is attached hereto as Exhibit "B" and made a part hereof as though set
`
`out fully herein word for word. The Mortgage on the Property represents a first priority
`
`mortgage on the Property and is a paramount lien to any and all encumbrances on the Property.
`
`4833-7179-4915.1
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`7.
`
`Borrowers have defaulted on their obligations to make monthly payments in
`
`accordance with the terms of the Note. As a result of said default, Arvest has made demand on
`
`Borrowers for payment in full of all unpaid principal, accrued interest and costs thereunder and
`
`said Borrowers have failed and refused to make payment.
`
` 8.
`
`The Note is in default and Arvest's right to foreclose on the Mortgage has become
`
`absolute.
`
` 9.
`
`As of March 30, 2021, there is a principal balance due and owing on the Note in
`
`the amount of $2,711,010.48. The total unpaid interest as of March 30, 2021 is $11,497.40
`
`Interest is continuing to accrue on the unpaid principal balance in the amount of $319.37 per
`
`diem. There are also appraisal fees due in the amount of $2,300.00 and engineering fees due in
`
`the amount of $900.00 as a result of structural deficiencies in the improvements to the Property.
`
`In accordance with the terms of the Note and the Mortgage there is due and owing to Arvest
`
`sums of money for title work done on the Property, attorneys fees and costs incurred in this
`
`action.
`
`WHEREFORE, premises considered, Arvest prays for relief as follows:
`
`(a)
`
`(b)
`
`that summonses be issued for the Defendants in this cause of action;
`
`that Arvest have judgment in rem against the Property and jointly and severally in
`
`personam against Beefam, LLC and Bonerts MV, LLC in the sum of $2,737,205.28 representing
`
`principal, interest and allowed charges due on the Note as of March 30, 2021, together with
`
`accrued interest at the rate of $319.37 per diem thereafter until paid in full;
`
`(c)
`
`that Arvest recover any additional sums which it may be forced to pay to protect
`
`its security including, but not limited to, abstract and title search charges, reasonable attorneys'
`
`fees, its costs incurred herein and any costs incurred in connection with the repair, maintenance,
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`4833-7179-4915.1
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`preservation and remedial actions required on the Property or for the protection of the Property
`
`and surrounding property owners as a result of the condition of the Property;
`
`(d)
`
`that if said judgments prayed for above be not paid within a time specified by the
`
`Court, the same be declared to constitute by virtue of the Mortgage, a good, valid and
`
`enforceable first lien on the Property and that Arvest's mortgage lien on the Property be
`
`foreclosed and sold by a commissioner to be appointed by this Court in accordance with the laws
`
`of this State after having advertised the same in accordance with the laws of this State and
`
`Orders of this Court;
`
`(e)
`
`that such Commissioner's sale be decreed to constitute a permanent bar to all of
`
`the right, title, interest, equity or claim of whatever nature, including leasehold rights and the
`
`rights of redemption of the Borrowers named herein and further be decreed a bar as to any right,
`
`title, interest, equity or claim of whatever nature asserted herein by the Borrowers or by any and
`
`all persons claiming by, through or under them;
`
`(f)
`
`that such Commissioner's sale or sales shall be deemed to foreclose and terminate
`
`all leasehold rights, if any, in and to the Property;
`
`(g)
`
`that upon the sale of the Property and confirmations thereof by this Court, the
`
`respective purchaser or purchasers be given a writ of possession or assistance, if necessary, in
`
`order to obtain immediate actual possession of the purchased property; and
`
`(h)
`
`for all other proper relief to which Arvest may be entitled.
`
`4833-7179-4915.1
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`4
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`Respectfully submitted,
`
`ARVEST BANK
`
`By its attorneys:
`
`By:
`
`/s/ Randal B. Frazier
`RANDAL B. FRAZIER
`Arkansas Bar No.: 83067
`Kutak Rock LLP
`Suite 2000
`124 West Capitol Avenue
`Little Rock, AR 72201
`(501) 975-3000
`randy.frazier@kutakrock.com
`
`4833-7179-4915.1
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`5
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`Exhibit "A"
`
`
`
`LOAN NUMBER
`
`'
`
`
`
`
`
`
`ACCT. NUMBER
`NOTE DATE
`iNITIALS
`LOAN NAME
`EEEFAM. LLC
`02122“?
`EDP
`435641 6
`
`
`INDEX (waltrnln)
`RATE
`MATURITV DATE
`EGAN PURPOSE
`NOTE AMOUNT
`
`
`
`FHLB SEC Connect
`4.250%
`02122127
`Commercial
`32.950.000.00
`5I1 5 plus 2.50096
`
`
` Creditor Use Only
`
` PROMISSORY NOTE
`
`(Commercial - Single Advance)
`
`
`DATE AND PARTIES. The data of this Promissory Note (New) Is February 22. 201?. The parties and their addresses are:
`LENDER:
`ARVEFI' BANK
`500 Broadway Street
`Little Rock. AR 72201
`Telephone:
`[501) 379-7610
`BORROWER:
`BEEFAM, LLC
`a California Limited Liability Company
`2727 S. SUSAN ST.
`SANTA ANA. CA 92704
`
`~
`
`BONEFITS MV. LLC
`a Calllbrnlo Limited liability Company
`2727 S. SUSAN 5T.
`SANTA ANA. CA 92704
`
`1. DEFINITIONS. As used In this Note. the terms have the following meanings;
`A. Pronouns. The pronouns"? "mo." and 'nry" refer to each Borrower signing this Note. Individually and together with
`their heirs. successes and assigns. and each other person or legal entity (including guarantors. endeavors. and sureiiasl
`who agrees to pay this Note. “You” and 'Yaur' rum to the Lender. any participants or syndicators. successors and
`assigns. or any person or company that acquires an Interest in the Loan.
`-
`B. Note. Nata refers to this document. and any extensions. renewals. modifications and substitutions of this Note.
`6. Loan. Coon refers to this transaction generally. Including obligations and duties arising from the turns of all documents
`prepared or submitted for this transaction such as applications. security agreements. disclosures or notes. and this Note.
`D. Loan Documents. Loan Documents refer to all the documents executed as a pm of or In connection with the Loan.
`Loan.
`E. Property. Property Is any property. real. personal or intangible. that secures my performance of the obligations'er this
`
`F. Percent. Rates and rate change limitations are expressed as annualized percentages.
`6. Dollar Amounts. All dollar amounts will be payable In lawful mortay of the United States of America.
`2. PROMISE To PAY. For value received. I promise to pay you or your order. at your address. or at such other location as you
`may designate. the principal sum or 32.950.000.00 {Principal} plus interest from February 22. 2017 on the unpaid Principal
`balance until this Note matures or this obligation Is accelerated.
`3. INTEREST. Interest will accrue on the unpaid Principal balance or this Note at the rate or 4.250 percent (interest Rate) until
`February 22. 2022. after which time It may change as described In the Variable Rate subsection.
`A. lntaraat Alter Dal-alt.
`it you declare a default under the terms of the Loan. including for failure to pay in run a: maria-try.
`you may hereon the interest Reta otherwise payable as ducrlbcd in thh section. in such event. interest Mil accrue on the
`full.
`unpaid Principal balance of this Note at a rate equal to the rate In direct prior to default. plus 6.000 percent. until paid In
`
`B. Maximum Interest Amount. Any am'ount assessed or collected as'lnterest under the terms or this Nata will be limited to
`the maximum lawful amount of Interest allowed by applicable law. Amounts collected In excess or the maximum lawmr
`amount. will be applied first to the unpaid Principal balance. Any remainder will be refunded to me.
`0. Statutory Authority. The amount assessed or collected on this Note is authorized by the Alabama osuy laws under No.
`Code, title 8 chapt. B.
`D. Accrual. Interest accrues using an Actuaiiaaa days counting method.
`E. Variable Rate. The interest Rate may change during the tern; of this transaction.
`the Sauna
`(1) index. Beginning with the first Clranga Date. the interest Rate will be based on the following Index:
`Connect Amortizlng rate for advances with a 15 year amortization and a 5 year balloon available through the Federal
`Home Loan Bank of Dallas.
`
`The Current Index Is the artist recent index figure available on each Change Date. You do not'guaranty by selecting
`this lrtdttlt. or the margin. that tho interact. Rate on this Note will be the same rate you charge on any other loans or
`class of loans you moire to me or other borrowers.
`I! this Index is no Ionger'avallabia. you will substitute a similar
`index. You will give me notice or your choice.
`
`BHMM. LLC
`
`
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`Exhibit "A"
`
`

`

`
`
`[2) Change Date. Each date on which the Interest Rate may change Is called it Change Data. The interest Rate may
`change February 22. 2022 and every 50 months thereafter.
`[3) Calculation Of (ti-range. On each Change Date you will calculate the Interest Rate. which will be the Current li'itl‘blt
`pius 2.500 percent. Subject to any limitations. this will he the Interest Rate tatiii the neat Change Date. The new
`Interest Rate will become effective on each Change Date. The interest Rain and other charges on this Note will never
`exceed the highest rate or charge allowed bylaw for this Note.
`(4) Effect or Variable Rate. A change in the Interest Rate will have the following effect on the payments: The amount
`of scheduled payments and the amount of the final payment will mango.
`4. ADDITIONAL CHARGES. As additional consideration. i agree to pay. or have paid. these additional fees and charges.
`A. Nonrefundabla Fees and Charges. The following fees are cameo when collected and will not be refunded If i prepaythis
`_Noto before the scheduled maturity date.
`Loan Origination. Ate) Loan Driglnadon fee of $22,125.00 payable from separate tunes on or before today's date.
`flood Certification . Mn] Flood Certification fee of $25.00 payable from separate runes on or before today's date.
`Recording - Releases. No) Recording - Releases fee of 550.00 payable from separate funds on or before boday's
`date.
`.
`
`In addition to Interest or other finance charges. I agree that twill pay these additional fees based on
`5. REMEDIAL CHARGES.
`my method and pattern of pawnent. Additional remedial charges they be described elsewhere In this Note.
`A. Late Charge. Ira payment is more than 10 days late. 1 will be charged 5.000 percent of the Unpaid Portion of Payment
`or $15.00. whichever ls greater. However. this charge will not be greater titan $50.00. lwlll pay this late charge promptly
`but only once for each late payment.
`
`6. PURCHASE MONEY LOAN. You may include the name of the seller on the check or draft for this Note.
`7. PAYMENT.
`i agree to pay this Note In 120 payments. This Note is amortized over 300 payments. A payment of
`516380.71 will be duo March 22. 2017. and on the 22nd day of each month thereafter.
`I will make tit) scheduled payments
`- of this amount. The sdteo‘uicd payment amount may then change every 60 payments thereafter. Changes In the interest Rate
`will not affect the scheduled payment amount during these periods. With each scheduled payment change the payment
`amount will be adjusted to reflect changes in the interest Rate during the remaining term of this Note.
`in addition. changes to
`the scheduled payment amounts are subject to changes In the interest Rate as described in the Variable Rate subsection of this
`Note. A final payment of the entire unpaid balance of Principal and Interest will be due February 22. 2027.
`Payments will be rounded to the nearest 3.01. With the final payment I also agree to pay any additional fees or charges owing
`and the amount of any advances you have made to others on my behalf. Payments scheduled to be paid on the 29th. 30th a-
`31st day of a month that contains no such day will. instead. be made on the last day of such month.
`Each payment i make on this Note will be applied first to interest that is due. then to principal that is due. then to escrow that
`is due. and finally to any charges that I owe other than principal and interest.
`If you and I agree to a different application of
`payments. we will describe our agreement on this Note. You may change how payments are applied in your sole disaniion
`without notice to the. The actual amount of my final payment will depend on my payment record.
`8. PREPAYMENT.
`i may prepay this Loan under the following terms and conditions.
`in Sublect to the payment of the
`Prepayment Charge (as defined below) prepayments will be permitted: however. if i elect to prepay only a portion of this loan.
`prepayments must be in Integral multiples of 510.000.
`(it) Any prepayment must be accompanied by payment for the
`prepayment charge and will be subject to me providing to you written notice at least 24 hours in advance of my intention to
`make a prepayment.
`(in) Partial payments will be applied first to all acuued and unpaid interest owing on the note and then
`agnir'rst the final Installmenth.) of principal owing under the note.
`I agree that the amount of the Prepayth Charge will be based upon the initial memory of the note and will be calculated in
`
`unscheduled payment of pdneral will bc 3% of the amount prepaid In year one. 216 in year two. and 1% In the final year of
`the note.
`If the loan Is initially made for a four year term then the Prepayment Charge for any unscheduled payment of
`principal will be 4% of the amount prepaid in year one. 396 In year turn. 2% in year three. and 1% in the final year of the note.
`if the loan is Initially made for a five year term then the Prepayment Charge for any unscheduled payment of principal will be
`note.
`5% of the outdoor. prepaid In year one. 4% In year MD. 3% in year three. 2% in year four. and 1% in the final year of the
`I also acknowledge and agree that i will own the Prepayment Charge for both prepayments which are voluntarily made by me
`and prepayments of the loan which occur as a result of a default under this note and the subsequent exercise by you of your
`remedies upon such a default.
`Any partial prepayment will not excuse any later scheduled payments until I pay in full.
`9. LOAN PURPOSE. The purpose of this Loan ls PURCHASE REAL ESTATE.
`
`10. ADDITIONAL TERMS. Minimum Debt Service Coverage Ratio 1.1 Annually Starting FYE 2lll1'.l Tait Returns. Definition:
`(Net Income of Collateral + Interest Expense + DepreciationiAmortization +l- extraordinary expensesiincorno) - Distributions
`divided by (Prolects Annual Debt Service). Maintain Global Debt Sen-ice Coverage Ratio 1 .35. Corporation Tax Returns:
`Bonuwerts) [5-Corporation (11205). Corporation (1120)] shall be required to fumlsh the Bank with a Federal Tax Return within
`30 days of filing. to be no later titan April 15 of each calendar year. In the event an extension Is filed. a copy of IRS Extension
`Forth 7004 shall be furnished to the Bank within the same time‘ period. The Federal Tax Return shall then be required within 30
`days of September 15 of the calendar year. Rent Rolls: Borrowcrtsl shall be required to furnish the Bank with Rent Rolls on a
`Quarterly basis. including at a minimum listing of tenants with amount of space occupied, amount of vacant space. monthly
`cndlor annual rant or lease amounts. term or losses, and lease expiration data. Personal Financial Statement: Cuerenterfs]
`shall be “routed to furnish the Bank with a Personal Financial Statement on an Annual basis. Including at a minimum a detailed
`listing of assets and liabilities. and a dating of contingent liabilities. This information will be required annually. Mlhli'l. 45 days of
`the previous submission date. Personal Tax Returns: Guarantortsi (Personal) shall be required to furnish to the Bani: a Federal
`and State Tax Income Tax Rewrn within 30 days of filing, to be no later than May 15 of each calendar you. in the event an
`extension is ruled. a copy of IRS Extension Form 4898 shall be furnished to the Eleni: within the same time period. The Federal
`Tax Return shall then be required within 30 days of October 15 of the calendar year.
`11. SECURITY. The Loan lssecured by separate seetnity instruments prepared together with this Note as follows:
`MAM. Lu:
`
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`Document Name
`Leases And Rents Assignment - 17701
`CHENAL PARKWAY
`
`Parties to Document
`BEEFAM. LLC. BUNERTS MU. LLC
`
`Mortgage - 17701 CHENAL PARKWAY.
`LITTLE ROCK. AR 72223
`
`BEEFAM. LLC. BONERTS MV. LLC
`
`occur:
`I will be In default if any of the following events fimown separately and collectively as an Event of Default)
`12. DEFAULT.
`A. Payments.
`I for to rnaira a payment in full when due.
`is. insolvency or Bankruptcy. The death. dissolution or insoivoney of. appointment of a rccohror by or on behalf of.
`application of any creator tailor law.
`the assignment for the benefit of creditors by or on behalf of. the voluntary or
`Involuntary lamination of existence b . or the commencement of any proceeding under any present or future federal or
`state inseivency. bankruptcy. reorganization. composition or debtor relief law by or against me or any too-signer. endarsor.
`surety or guarantor of this Note or any other obligations I have with you.
`c. Business Termination.
`l merge. dissolve. reorganize. end my business or existence. or a partner or majority owner dies
`oris declared legally Inmrnpotcnt.
`D. New Organizations. Without your written consent. I organize. merge into. or consolidate with an entity: acquire all or
`substantially all of the assets of another: materially change the legal structure. management. nvmership or financial
`condition: or effect or enter into a domestication, conversion or Interest exchange.
`E. Failure to Perform.
`i fail to perform anyconditlon or to iteep any promise or covenant of this Note.
`F. Other Documents. A default occurs under the terms of any other Loan Document.
`is. Other Agreements.
`lam in default on any other debt or agreement I have with you.
`H. Misrepresentation.
`I make any verbal unwritten statementor provide any financial Information that is untrue. Inaccurate.
`or conceals a material fact at the time It Is made or provided.
`I. Judgment.
`I fail to satisfy or appeal anyjrdpmont against me.
`J. Forfeitue. The i’roperty is used In a manner or for a purpose that threatens confiscation by a legal authority.
`it. Name Change.
`I dunga my name or assume an additional name without notifying you before making such a change.
`L. Property Transfer.
`1 transfer all or a substantial part of my mmy or property.
`M. Pr-operty Value. You determine In good faith that the Value of the Property has declined or ls impaired.
`ill. Material Change. Without first notifying you.
`there Is a material change In my business. Including ownership.
`management. and financial conditions.
`'
`
`0. Insecurity. You determine In good faith that a material adverse change has occurred in my i'utanciai condition from the
`conditions set forth in my most recent financial statement before the date of this Note or that the prospect for payment or
`performance of the Loan Is Impaired for any reason.
`13. DUE ON SALE all ENCUMBRANCE. You may. at your option. declare the entire balance of this Note to be irnmediateiy
`due and payable upon the creation of. or contract for the creation of. any lien. encumbrance. transfer or sale of all or any port
`of the Property. This right is subject to the restrictions Imposed by federal law. as applicable.
`14. WAIVERS AND CONSENT. To the extent not prohibited by law.
`I waive protest. presentment for payment. demand.
`notice of acceleration. notice of Intent to accelerate and notice of dishonor.
`A. Additional Waivers By Borrower.
`in addition. I. and any party to this Note and Loan. to the extent permitted by law.
`consent to certain actions you may take. and generally waive defenses that may on available based on those actions or
`based on the status of a party to this Note.
`(1) You may renew or extend payments on this Note. regardless of the number of such renewals or extensions.
`(2) You may release. any Borrower. endorsrs, guarantor. surety. accommodation maker or any other co-signcr.
`(3) You may release. substitute or Impair any Property securing this Note.
`(4) You. or any institution participating In this Note. may Invoice your right of set-off.
`{5) You may enter into any sales, repurchases or participaiions of this Note to any person in any amounts and i waive
`notice or such solos. repurchases or participaticns.
`(6) i agree that any or us signing this Note as a Borrower Is authorlzod to modify the terms of this Note or any
`instrument securing. guarantyfng or relating to this Note.
`[ii i agree that you may Inform any party who guarantees this Loan of any Loan accommodations. ronowais.
`extensions. modifimtions. substitutions or future advances.
`
`B. No Waiver By Lender. Your course of dealing. or your forbearance from. or delay in. the exercise of any of your rights.
`remedies. privileges or right to insist upon my strict performance ofnny provisions contained in this Note. or any other Loan
`Document. shall not be construed as a waiver by you. unless any such waiver is in wailing and Is signed by you.
`15. REMEDIES. After i default. you may at your option do any one or more of the following.
`A. Acceleration. You may moire all or any part of the amount owing by the terms of this Note immediately due.
`8. Sources. You may use any and all remedies you have under state or federal law or In any Loan Document.
`default.
`c. Insurance Benefits. You may make a claim for any and all Insurance benefits or refunds that may be available on my
`
`El. Payments Made (in My Behalf. Amounts advanced on my behalf will be immediately due and may be added to the
`balance owing under the terms or this Note. and accrue interest at the highest post-maturity interest rate.
`'
`E. Set-Dir. You may use the right of sat-off. This means you may set-off any amount due and payable under the terms of
`this Note against any rightl have to receive money from you.
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`My right to receive money from you Includes any deposit or share account balance I have with you: any money owed to me
`on an Item presented to you or in your possession for collection or exchange: and any repurchase agreement or other
`hon-deposit obligation. ’Any amountduo and payable tinder the terms of this Note” means the total amount to which you
`are entitled to demand payment under the toms of this Note at the time you set-err.
`Suoioct to any other written contract. If my right to receive money from you Is also owned by someone who has notagreed
`to pay mi: Note. your rlght or set-orr_wiu apply to my interest in the obligation and to any other amounts I could withdraw
`on my solo request or endorsement.
`
`Your right of set-off does not apply to an account or other obligation where my rights arise only in a representative
`capacity. it also does not apply to any individual Retirement Account or other tnv—deierred retirement account.
`You will not be liable for the dishonor of any check when the dishonor occurs because you set-off against any of my
`accounts.
`I agree to holdyou harmless from any such claims arising as a result oiyour exercise ofyour right of set-off.
`F. Waiver. Except as otherwise required by law. by choosing any one or more of these remedies you do not give up your
`right to use any other remedy. You do not waive a default if you choose not to use a remedy. By electing not to use any
`remedy. you do not waive your right to later consider the event a default and to use any rermdies If the default continues
`or occurs again.
`
`16. COLLECTION EXPENSES AND A'ITORNEYS' FEES. On or alter the occurrence of an Event or Default. to the extent
`permitted by law. I agree to pay all expenses of collection. enforcement or protection or your rights and remedies under this
`Nero or any other Loan Document. Expenses Include. but are not limited to. reasonable attorneys' fees (as determined under
`Ark. Code Ann. 51 6-22-3081. court costs. and other legal responses.
`If not paid immediately. these expenses will bearlnterest
`from the date of the payment until paid in full at the some interest rate In effect as provided In the terms of this Note. All fees
`and expenses will be secured by the Property l have granted to you. If any.
`In addition, to the extent permitted by the United
`States Baniuuptrry Code. I agree to pay the reasonable attorneys' fees incurred by you to protect your rights and Interests In
`connection with any bankruptcy proceedings Initiated by oregalnst mo.
`11. COMMISIONS.
`I understand and agree that you (or your affiliate) will earn commissions or fees on any Insurance
`products. and may earn such for: on other services that I buy throughyou oryour affiliate.
`'
`18. WARRANTIES AND REPRESENTATIONS.
`I make to you the following warranties and reprmentadons which will continue
`as long as this Note is In effect:
`'
`
`I have Um
`I am duly organized. and validly existing and In good standing in aIIJLrlsdlctlons In which i operate.
`A. Power.
`powerand authority to enter Into this transaction and to deny on my business or activity as It is now being conducted and.
`as applicable. am qualified to do so in eachjurlsdictlon in which I operate.
`B. Authority. The execution. delivery and performance of this Note and the obligation evidenced by this Note are within my
`powers. have been duly authorized. have received all necessary governmental approval. will not violate any mvlsion of
`law. or order of mutt or governmental agency. and will not violate any agreement to widen I am a party or to which I am or
`any of my Property Is sable“.
`
`c. Name and Place of Business. Other than previously disclosed In writing to you I have not changed my name or principal
`place of business within the test in years and have not used any other trade or fictitious name. Without your prior Mitten
`consent. I do not and will not use any other nettle and will preserve my existing Mme. trade names and franchises.
`19. INSURANCE.
`i agree to obtain the insurance described In this Loan Agreement.
`A. Property Insurance.
`I will Insure or retain insurance coverage on the Property and abide by the insurance requirements of
`any socially Instrument securing the Loan.
`'
`
`I agree to purchase any insurance coverages that are required. In the amounts you require. as
`B. Insurance Wan-antics.
`described In this or any other documents I sign for the Loan. I will provide you with oondmring proof of coverage.
`I will buy
`or provide heurance from a firm licensed to do bounces in the State where the Property is located. If I buy or provide the
`insurance from someone other than you. the firm will be reasonably acceptable to you.
`I will have the Insurance company
`name you as loss payee on any Insurance policy. You will apply the insurance p'eceods toward what I owe you on the
`outstanding balance.
`I agree that It the insurance proceeds do not cover the amounts I still owe you.
`I will pay the
`difference.
`I will keep the Insurance until all debts secured by this agreement are paid. Ifl want to buy the insurance from
`you. I have signed a separate statement agreeing to this purchase.
`20. AFFLICABLE LAW. This Note Is governed by the laws of Arkansas. Alabama. the United States of America. and to the
`extent required. by the laws of the Jurisdiction where the Property Is located. except to the extent such state laws are
`preempted by federal law.
`
`to other'lssues.
`
`Tile interest rate and related charges on the Loan are gouamed by the laws or Nabame and federal law. The law oi the
`udsdlcflofl where on are located. where the - --
`ls located. orwherc I am located me out
`
`Disclosuru Regarding Appficable Law
`
`21. JOINT AND INDIVIDUAL LIABILITY AND SUCCESSORS. My obligation to pay the Loan ls Independent of the obligation of
`any other person who has also agreed to pay It. You may sue me alone. or anyone else who Is obligated on the Loan. or any
`number or us together. to collect the Loan. Extending the Lean or new obligations under the Loan. will not atroct my duty
`under the Loan and I will still be obligated to pay the Loan. This Note shall inure to the benefit of and be enforceable by you
`and your successors and assigns and shall be binding upon and enforceable against me and my personal representatives.
`successors. heirs and assigns.
`
`22. AMENDMENT. INTEGRATION AND SEVERABILITY. This Note may not be amended or modified by oral agreement. No
`amendment or modification of this Note Is effective unless made In writing and executed by you and me. This New and the
`other Loan Downlonts are the complete and final expression of the agreement.
`if any trovislon of dis Note Is unenforceable.
`then the unenforceable provision will be severed and the remaining provisions will still be enforceable. No present or future
`agreement securing any other debt I owe you until secure the payment or this Loan If. with respect to this loan. you fall to fulfill
`any necessary requirements or fall to conform to any limitations of the Truth In tending Act (Regulation 21 or the Real Ester
`
`' —""— "'"' ' ""'— "—“M
`
`attrm.u.c — '-— '
`
`Arkansas heroism um
`mnfmtml HIDE!"
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`Weller: Mm financial Services 91nd. 2017 Barriers Systems"
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`Do 2 '2 (
`83,!
`fer MICHAEL BONERT AND UNIEN 30 RT
`MICHAEL BONE
`. TRUS
`1 8. 2010. MANAGERIM BER
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`CAB E TRUST. DATED JUNE
`
` By
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`-
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`Settlement Procedures N1 (Regulation )0 that are required for loans secured by the Property or ii. as a result. this Loan would
`become mjeet to Section 670 of the John Warner National Defense Authorization Act for Fiscal Year 2007.
`23. INTERPREMTION. Whenever used. the singular Includes