EXHIBIT 10.14
REVOLVING CREDIT NOTE
$10,000,000.00 No. 8
June 29, 1999
FOR VALUE RECEIVED, the undersigned, MEDALLION BUSINESS CREDIT, LLC, a
Delaware limited liability company (the "Borrower"), hereby unconditionally
promises to pay on the date of Maturity, as defined in the Loan Agreement
(hereinafter referred to) or on such earlier date as may be required under the
Loan Agreement, to the order of HSBC BANK USA (the "Bank") at the Agent Payment
Office (as defined in the Loan Agreement), in lawful money of the United States
of America and in immediately available funds, an amount equal to the lesser of
(a) TEN MILLION DOLLARS ($10,000,000.00) and (b) the aggregate unpaid principal
amount of all Revolving Credit Loans made by the Bank to the Borrower pursuant
to the Amended and Restated Loan Agreement, dated as of June 29, 1999, as
amended, among the Borrower, Medallion Financial Corp., the banks that from time
to time are signatories thereto, the Swing Line Lender and Fleet Bank, National
Association, as Arranger and Agent (as amended, modified or supplemented from
time to time in accordance with its terms, the "Loan Agreement"). The Borrower
further promises to pay interest (computed on the basis of a 360-day year for
the actual number of days elapsed) in like money on the unpaid principal balance
of this Note from time to time outstanding at such rates and times as provided
in the Loan Agreement.
All Revolving Credit Loans made by the Bank pursuant to the Loan
Agreement and all payments of the principal thereof shall be endorsed by the
holder of this Note on the schedule annexed hereto (including any additional
pages such holder may add to such schedule), which endorsement shall constitute
prima facie evidence of the accuracy of the information so endorsed; provided,
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however, that the failure of the holder of this Note to insert any date or
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amount or other information on such schedule shall not in any manner affect the
obligation of the Borrower to repay any Revolving Credit Loans in accordance
with the terms of the Loan Agreement.
On and after the stated or any accelerated maturity hereof, and until
paid in full (whether before or after the occurrence of any Event of Default
described in Sections 9.1(h) and 9.1(i) of the Loan Agreement), (a) the
outstanding principal amount of this Note which at such time is a Prime Rate
Loan (including, to the extent permitted by law, unpaid interest thereon) shall
bear interest at an annual rate equal to the sum of 2% plus the rate of interest
then applicable to such Prime Rate Loan then in effect and (b) the outstanding
principal amount of this Note which is a LIBO Rate Loan (including, to the
extent permitted by law, unpaid interest thereon) shall bear interest at an
annual rate equal to the sum of 2% plus the rate of interest then applicable to
such LIBO Rate Loan then in effect, in each case payable on demand, but in no
event shall such rate of interest (the "Default Rate") be in excess of the
maximum rate of interest permitted under applicable law. The Default Rate shall
be computed on the basis of a 360-day year for the actual number of days
elapsed. If the Default Rate is to be based on the Prime Rate, the Prime Rate
to be charged shall change when and as the Prime Rate is changed, and any such
change in the Prime Rate shall become effective at the opening of business on
the day on which such change is adopted. At the end of the applicable Interest
Period for a LIBO Rate Loan on which the Default Rate is being charged, such
LIBO Rate Loan shall be automatically converted to a Prime Rate Loan, and the
Default Rate to be charged in respect of such Loan shall be computed based on
the Prime Rate.
This Note is one of the Revolving Credit Notes referred to in the Loan
Agreement, is secured as provided therein, is entitled to the benefits thereof
and is subject to optional and mandatory prepayment, in whole or in part, as
provided therein. The Borrower shall make when due any and all payments and
prepayments on
this Revolving Credit Note required under the Loan Agreement. Reference is
herein made to the Loan Agreement for the rights of the holder to accelerate the
unpaid balance hereof prior to maturity.
Borrower hereby waives diligence, demand, presentment, protest and
notice of any kind, release, surrender or substitution of security, or
forbearance or other indulgence, without notice.
Capitalized terms used herein and not otherwise defined shall have the
respective meanings ascribed to them in the Loan Agreement.
This Note may not be changed, modified, or terminated orally, but only
by an agreement in writing signed by the party to be charged.
IN THE EVENT OF ANY LITIGATION WITH RESPECT TO THIS REVOLVING CREDIT
NOTE, THE BORROWER WAIVES (TO THE EXTENT PERMITTED BY LAW) THE RIGHT TO A TRIAL
BY JURY, ALL RIGHTS OF SETOFF AND RIGHTS TO INTERPOSE COUNTERCLAIMS AND CROSS-
CLAIMS AGAINST THE BANK (UNLESS SUCH SETOFF, COUNTERCLAIM OR CROSS-CLAIM COULD
NOT, BY REASON OF ANY APPLICABLE FEDERAL OR STATE PROCEDURAL LAWS, BE
INTERPOSED, PLEADED OR ALLEGED IN ANY OTHER ACTION) AND THE DEFENSES OF FORUM
NON CONVENIENS AND IMPROPER VENUE. THE BORROWER HEREBY IRREVOCABLY CONSENTS TO
THE NON-EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK, COUNTY OF
NEW YORK AND OF ANY FEDERAL COURT LOCATED IN THE SOUTHERN DISTRICT OF NEW YORK
IN CONNECTION WITH ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
REVOLVING CREDIT NOTE. THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF
LAWS PRINCIPLES, AND SHALL BE BINDING UPON THE SUCCESSORS AND ASSIGNS OF
BORROWER AND INURE TO THE BENEFIT OF THE BANK AND ITS SUCCESSORS AND ASSIGNS. If
any term or provision of this Revolving Credit Note shall be held invalid,
illegal or unenforceable, the validity of all other terms and provisions herein
shall in no way be affected thereby.
IN WITNESS WHEREOF, Borrower has executed and delivered this Note on
the date first above written.
MEDALLION BUSINESS CREDIT, LLC
a Delaware limited liability company
By:/s/ Alvin Murstein
______________________________
Name: Alvin Murstein
Title: Chief Executive Officer
By:/s/ Daniel F. Baker
______________________________
Name: Daniel F. Baker
Title: Chief Financial Officer
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Grid Schedule for Revolving Credit Note
Attached to and made part of the Revolving Credit Note, dated June 29,
1999, by Medallion Business Credit, LLC to the order of HSBC Bank USA (the
"Bank") pursuant to the Amended and Restated Loan Agreement, dated as of
June 29, 1999 among Medallion Financial Corp., Medallion Business Credit,
LLC, the banks that from time to time are signatories thereto and Fleet
Bank, N.A., as Arranger, Swing Line Lender and Agent
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Loan Type Unpaid
(LIBO Rate Loan or Interest Period Amount of Principal
Prime Rate Loan) and Interest Rate Principal Paid Balance Name of
Principal (Borrowed or (LIBO Rate or Prepaid or (Balance Person Making
Date Amount Converted to) Loans only) Converted Continued) Notation
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