CONTRACT FOR PURCHASE
1. TO: GALENA STATE BANK AND TRUST CO., an I1linois Banking
Corp. of 216 S. Commerce St., Galena, IL 61036, hereinafter
referred to as "Seller".
2. CHARLES SCHNEPF and DANIEL O'KEEFE of 125 South Main
Street, Galena,Illinois 61036, hereinafter referred to as
"Buyers", offers to purchase the following described real estate
situated in the City of Galena, Jo Daviess County, Illinois,
commonly known as 400 South Main Street, Galena, Illinois, and
further described as follows:
Lots Numbered Five (5), Six (6), the North Twenty-two (22) feet
of Lot Number Nine (9) and the North Fourteen and Seven-twelfths
(14 7/12) feet of the South Twenty-four and Six-Twelfths (24
6/12) feet of Lot Number Eight (8) all in Block B on the West
side of the Galena River, in the City of Galena, Jo Daviess
County, Illinois. ALSO, the South Twenty-seven (27) feet of Lot
Number Nine (9) in Block B extending from Water Street to the
rear of said Lot Nine (9) and the North Twenty-four and Six-
Twelfths (24 6/12) feet of Lot Number Eight in Block B extending
from Water Street to the rear of said Lot Eight (8) and on the
West side of the Galena River, in the City of Galena, situated in
the County of Jo Daviess, in the State of Illinois. EXCEPT that
part of Lot 5 in Block B on the West side of the Galena River, in
the City of Galena, Jo Daviess County, Illinois, bounded by a
line described as follows: Commencing at the Northwest corner of
said Block B; thence South 12 degrees 07 minutes 05 seconds West
35.77' along the West line of said Block B to the point of
beginning, thence South 76 degrees 25 minutes 28 seconds East
58.52' along the North line of a four story brick building,
thence South 12 degrees 04 minutes 58 seconds West 20.21' along
the East line of a four story brick building, thence South 12
degrees 35 minutes 45 seconds West 25.95' along the East line of
a four story brick building to a point on the South line of said
Lot 5; thence North 76 degrees 38 minutes 48 seconds West 58.32'
along the South line of said Lot 5 to the Southwest corner of
said Lot 5; thence North 12 degrees 07 minutes 05 seconds East
46.40' along the West line of said Lot 5 to the point of
beginning. Subject to easement recorded in the Jo Daviess
County, Illinois Recorder's Office as Document No. 234205.
3. And to pay you for the premises the sum of $262,275.00, in
the manner following: $10,000.00 upon the signing of this
Contract the same to be refunded to Buyer if this offer is not
accepted. The earnest money deposit of $10,000.00 shall be held
in an interest bearing amount with interest credited to Buyers at
closing. The balance of $252,275.00 shall be paid in cash at the
time of closing coincident with the delivery of Deed. The
closing shall be conducted by a representative of Attorneys'
Title Guaranty Fund, Inc., through an Escrow Exchange Agreement
No.96026S, at the office of Vincent & Roth, P.C., 122 1/2 N. Main
Street, Galena, Illinois 61036.
4. THIS CONTRACT IS CONTINGENT UPON THE ABILITY OF SELLERS TO
QUALIFY THIS TRANSACTION AS AN EXCHANGE PURSUANT TO IRS RULES AND
REGULATIONS.
THIS CONTRACT IS ALSO CONTINGENT UPON THE ABILITY OF BUYER TO
RECEIVE FROM SELLERS WITHIN ONE MONTH OF THE ACCEPTANCE OF THE
CONTRACT, THE FOLLOWING:
1) List of personal property located on the premises to
be transferred to Buyer;
2) Evidence that the premises are presently zoned general
business.
3) Inspection of premises within seven days by Buyers.
5. IF ANY CONTINGENCY IN PARAGRAPH 4 CANNOT BE CARRIED OUT, THIS
CONTRACT SHALL BECOME VOID AND BUYER AND SELLER SHALL SIGN AN
AGREEMENT TERMINATING THE CONTRACT FOR PURCHASE AND RELEASING THE
EARNEST MONEY DEPOSIT TO BUYER.
6. Seller agrees to pay a real estate commission in the amount
of $6,725.00.
7. The time of closing shall be on or before June 15, 1996, and
Seller shall deliver possession at time of closing, and all
documents relative to the transaction shall be signed and
delivered.
8. Parties agree that Seller shall lease the improvements on the
premises being conveyed herein until its new bank building is
constructed and ready for possession or until January 1, 1997,
whichever shall first occur. During said time, Seller shall pay
all utility costs involved in operating this bank facility on
said premises, pay all real estate taxes assessed against said
premises, pay for the cost of building insurance in the minimum
amount of $260,000.00 and liability insurance insuring the
interests of both Seller and Buyers and pay all repair costs to
the premises. Seller shall also pay rent for said period of time
based upon a formula yielding 8.00% of the net purchase price of
the premises, computed on a 365 day basis. (Example:
$262,275.00 less commission of $6,725.00 = $255,550 x 8% =
$20,444/365 - $56.0ll per day)
9. Seller warrant that it sells all fixtures attached to the
premises and that there are no rented fixtures or equipment.
10. Buyers agree that the real estate being conveyed herein may
not be used as a bank building, a savings & loan office or a
financial institution that would compete with Galena State Bank &
Trust Co., until after June 1, 2006.
11. Except as otherwise stated in this Contract, Seller warrants
that all mechanical equipment, heating and air conditioning
equipment, water softener, water heater, plumbing and electrical
systems are in normal operating condition as of date of
possession.
12. All prorations, including rents, general taxes, utilities and
fuel oil shall be made as of closing with tax prorations based
upon latest available information. Tax prorations shall be made
on a 365 day basis if the tax proration used at closing differs
from the tax proration using the actual tax bill by more than
$25.00, the parties agree to adjust the difference when the tax
bill is issued.
13. Risk of loss from all causes except fault of Buyer shall
remain upon Seller until transfer of title or possession. Seller
shall keep improvements on the premises insured to their full
insurable value with respect at least to those hazards covered by
the usual fire and extended coverage insurance. If, while risk of
loss remains on Seller, the property is damaged, except through
fault of Buyer, in an amount less than 25% of the purchase price,
Seller shall restore the same forthwith and the parties shall
remain bound to perform this Contract. In all other respects the
Illinois Uniform Vendor and Purchaser Risk Act applies. Damage
in an amount equal to 25% or more of the purchase price is
"material". (If damage is material the Act entitles the Buyer to
recover any portion of the purchase price paid.)
14. Conveyance of the property shall be by stamped Corporate
Warranty Deed releasing homestead, or such other appropriate deed
as may be required by this Contract. Said conveyance shall be
subject only to the following: All taxes and special assessments
levied or confirmed after the date of closing; building and
building line, use and occupancy restrictions, conditions and
covenants of record, provided the same are not violated by the
existing improvements or the present use thereof and do not
contain a reverter or right of re-entry; zoning laws and
ordinances of which there are no violations; easements for the
use of public utilities, if any, roads and highways, drainage
ditches, feeders and laterals, if any, existing leases and
tenancies and any mortgage or agreement for deed to be assumed
pursuant to this Contract.
15. Seller shall, at seller's expense, before closing, furnish a
current title insurance commitment in the amount of the purchase
price, and a final policy thereafter or mutually acceptable
evidence of title. Liens or encumbrances with a total balance
due of an amount not more than the balance due at the time of
closing under this Contract shall not constitute material defects
if said liens or encumbrances are paid and released at the time
of closing.
l6. If Seller cannot deliver merchantable title to Buyer at
closing, subject only to the permitted exceptions, this Contract,
at Buyers option shall be void and earnest money shall be
returned to Buyer or Buyer may elect to close and deduct from the
purchase price a definite and ascertainable amount required to
satisfy and release any non-permitted exceptions, and in such
case, Seller shall convey the premises to Buyer.
17. Should the Buyer fail to perform this contract at the time
and in the manner herein specified, the earnest money shall, at
the option of the Seller, be forfeited by Buyer as liquidated
damages, and this Contract shall become null and void, and the
Seller shall then have right to possession of the premises. Time
is of the essence of this Contract, and of all of the terms and
conditions hereof. In the event the Seller does not elect to
accept forfeiture of the earnest money, Seller shall be entitled
to exercise all other remedies available to Seller under Illinois
law.
18. In the event of legal action to construe or enforce the
provisions of this Contract, the prevailing party shall be
entitled to collect his reasonable attorney's fees court costs
and related expenses from the losing party and the court having
jurisdiction of the dispute shall be authorized to determine the
amount of such fees, costs and expenses and enter judgment
therefor.
19. Should Buyer fail to perform this contract promptly on his
part at the time and in the manner specified, and Seller
exercises the options of forfeiture contained hereinabove, the
total earnest money deposit shall be retained by the Seller as
liquidated damages.
20. Seller shall not be required to furnish a survey.
m
21. All refuse and Personal Property which is not being conveyed
to Buyer shall be removed from the Rea1 Estate at Seller's
expense before the date of possession, unless otherwise agreed
upon. Seller shall surrender possession of the premises in a
broom-clean condition.
22. Buyer shall have the right to inspect the premises within 48
hours prior to closing to determine that the premises are in the
same condition as date of acceptance of Contract; ordinary wear
and tear excepted.
23. Neither Seller nor any authorized agent or representative of
Seller has received, prior to the date of seller's execution of
this Contract, any notice from any governmental body describing
or relating to any alleged violation at the premises of any
applicable zoning, building, dwelling, fire, electrical, health
and safety, environmental protection or similar laws, statutes,
ordinances, codes, rules or regulations which are uncured or
uncorrected as of the date of Seller's execution of this
Contract.
24. Parties agree to comply with the provisions of the Real
Estate Settlement Procedures Act of 1974 (RESPA).
25. Each party agrees to provide the information necessary to
complete the portions of the Illinois Department of Revenue Real
Estate Transfer Declaration that are applicable to him, and to
execute such declaration pursuant to the Real Estate Transfer
Act, 35 ILCS 305/3.
26. Buyer and Seller agree that signatures on faxed copies of the
Contract for Purchase will be binding on both parties.
Buyer/Seller agrees to deliver an originally signed copy of this
agreement to Listing broker and Selling broker within 10 days
after receipt of faxed copy.
27. THIS DOCUMENT REPRESENTS THE ENTIRETY OF THE AGREEMENT
BETWEEN THE PARTIES AND SHALL BE BINDING UPON THE PARTIES, THEIR
HEIRS, SUCCESSORS AND ASSIGNS.
Dated this 04th day of December, 1995, at Galena, Illinois.
BUYERS SELLERS
GALENA STATE BANK & TRUST CO.
\s\ Charles Schnepf BY: \s\ Jerry L. Murdock
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\s\ Daniel O'Keefe Attest: \s\Libby Miller
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