CHURCH LOANS & INVESTMENTS
A Real Estate Investment Trust
March 30, 1999
The Biltmore Group of Louisiana, LLC
Attn: Joanne Caldwell-Bayles
507 Trenton St
West Monroe, LA 71291
Re: Minden, LA Project
Dear Mrs. Caldwell-Bayles:
This will constitute the cimmitment of Church Loans & Investments
Trust ("Church Loans") to loan to The Biltmore Group, W. Monroe, LA
("Borrower") the sum of $1,368,520, or any amount less than that amount
as the Borrower may need less any title insurance, appraisal costs, mortgage
registration tax and all other closing costs and expense that may be
incurred by Church Loans in connection with the funding and collection
of the loan.
This commitment shall be subject to the following conditions:
1. That the Borrower pay to Church Loans a commitment fee equal to 1/2%
(one-half percent) of the principal amount of the funds to be
advanced to the Borrower under, the terms of this commitment. Such
commitment fee is due and payable upon Borrower's acceptance and
execution of this commitment letter. Such fee is not interest, but
is paid and payable to Church Loans to induce Church Loans to enter
into this loan commitment and to compensate Church Loans for making
available the funds necessary to fund the entire amount of the
committed loan whether or not such amount is advanced.
2. That should the proceeds from the sale of the bonds through MMR
Investment Bankers ("MMR") and other participating broker/dealers,
after the payment of the expenses associated with the bond offering
and the establishment of the first six months sinking fund reserve,
be insufficient to pay the unpaid principal and interest upon the
loan made by First Republic Bank, Monroe, LA ("'First National"), at
the option of the Borrower said loan by Church Loans shall be as
follows:
(a) The term of this loan shall be for a period of one (1) year
upon the following terms and conditions:
The Biltmore Group of Louisiana, LLC
Attn: Joanne Caldwell-Bayles
West Monroe, LA
Minden, LA Project
March 30, 1999
Page 2
(1) The Borrower shall be current upon all of its outstanding
debt obligations, to include, but not necessarily
restricted to all sinking fund payments payable to the
trustee in connection with the bonds to be offered through
MMR and other participating broker/dealers.
(2) The amount of this loan shall be the lesser of (i) the
unpaid principal upon the loan made by First National, or
(ii) the unpaid principal amount of all unsold bonds
offered through MMR and other participating broker/dealers
described above. Any principal amount of the First National
loan in excess of the amount of the unsold bonds must be
paid in full by Borrower, prior to the funding of this loan.
(3) The Borrower sha11 submit the Feasibilty Study regarding
this project, along with related financial data. Funding
of this loan shall be contingent upon the review and
acceptance as to quality by Church Loans based on its own
criteria.
(4) The interest rate upon this loan shall be at a variable
rate equal to 2% per annum in excess of the "Prime Rate"
of interest published by the Wall Street Journal under
heading "Money Rates".
(5) The interest upon the unpaid principal balance of this
loan shall be payable monthly.
(6) The principal upon this loan shall be paid on or before
one year from date.
(7) The Borrower shall pay Church Loins a loan fee equal to
2% (two points) of the principal amount of this loan.
(8) The Borrower shall deposit with Church Loans the
additional sum of $2,500.00 which are the legal fees, to
be incurred by Church Loans in connection with this loan.
(9) The total amount Of this loan and the sold bonds shall not
exceed 66 2/3% of the appraised market value of the
collateral.
The Biltmore Group of Louisiana, LLC
Attn: Joanne Caldwell-Bayles
West Monroe, LA
Minden, LA Project
March 30, 1999
Page 3
(b) If on the maturity of this one year loan, should the proceeds
from the sale of the bonds to be offered by the Borrower
through MMR and other participating broker/dealers be
insufficient to pay the unpaid princpal and interest upon
this loan then, at the option of the Borrower, the principal
amount of this loan in regard to the Minden issue, shall be
renewed and extended by Church Loans into a permanent loan
upon the following terms and conditions:
(1) The Borrower shall be current upon all of its outstanding
debt obligations, to include. but not necessarily
restricted to to all sinking fund payments payable to
the trustee in connection with the bonds to be offered
through MMR and other participating broker/dealers, and
all interest payments upon the loan to be made by Church
Loans to the Borrower under the terms of this commitment.
(2) The permanent loan shall bear interest at the same rate
as described in paragraph (a) (3) above.
(3) The amount of the permanent loan shall be payable in
equal, or as equal as possible due to the variable rate
of interest on the loan, monthly installments of principal
and interest over a period of thirteen years, however, the
loan shall be due and payable in full, with interest, at
the date of the final maturity of the bonds. Borrower
shall have the right to prepay the loan at any time
without penalty.
(4) The Borrower shall pay to Church Loans an additional loan
renewal fee equal to 5% (five points) of the principal
amount of the permanent loan.
(5) The Borrower shall deposit with Church Loans an additional
sum of $2,500.00 which are the legal fees to be incurred
by Church Loans in connection with the permanent loan.
(6) The loan shall continue to be secured on are equal basis
with the outstanding bonds to be issued by the borrower
through MMR and other participating broker/dealers upon
all property to be given by the Borrower to secure the
loan committed herein.
The Biltmore Group of Louisiana, LLC
Attn: Joanne Caldwell-Bayles
West Monroe, LA
Minden, LA Project
March 30, 1999
Page 4
(7) The total amount Of the loan and sold bonds shall not
excced 66 2/3% of the appraised market value of the
property.
(c) Until such time as the loans committed herein are paid in full,
the Borrower shall not further encumber the property security
the payment of said loans, either by placing additional
mortgages or deeds of trust upon said property, or by
increasing the indebtedness of the Borrower under any Trust
Indenture, mortgage or deed of trust or other security
documents associated with the sale of bonds secured by said
property. Should the Borrower additionally encumber the
property securing the loans committed hereby prior to their
payment in full, Church Loans shall have the right to declare
the unpaid principal and interest upon said loans immediately
due and payable upon thirty days notice to the Borrower.
(d) The term "bonds" as used herein shall mean and refer to the
series of bonds dedicated to the Minden, Louisiana project.
The acceptance of this commitment must be indicated by the Borrower's signing
and returning the original copy of this letter within fifteen (15) days from
the date hereof.
Sincerely yours,
/S/KELLY ARCHER
Kelly Archer
Manager of Operations/CFO
The Biltmore Group of Louisiana, LLC
Attn: Joanne Caldwell-Bayles
West Monroe, LA
Minden, LA Project
March 30, 1999
Page 5
The above commitment has been agreed to and accepted by the undersigned
Managing Member of The Biltmore Group of Louisiana, LLC.
Date 4/6/99
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/S/SUNSHINE GANTT THE BILTMORE GROUP OF LOUISIANA, LLC.
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CORPORATE SECRETARY /S/JOANNE CALDWELL-BAYLES MG MEMBER
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