Item 1.01 Conclusion of a Material Definitive Agreement.
company, formerly NETREIT MODEL HOMES, LLC (“NMH”), DUBOSE MODEL HOME INVESTORS # 202 LP, a
Under the Loan Agreement,
company, formerly NETREIT, INC. (the “Company”) signed a guarantee agreement dated
The amendment provides for a
between the lender and NMH. The Loan relates to the principal unpaid of any advance bears interest before maturity at a fixed rate per year equal to the lesser of (a) the maximum rate authorized under
Under the terms of the Loan Agreement, the Lender agrees to make periodic advances to the Borrower from time to time with the proceeds of such advances being used for the borrower’s purchase of model homes approved by the Lender at its reasonable discretion. Principal amounts under the loan agreement will be amortized over a period of 20 years. Each advance made by the Lender to the Borrower will be equal to or less than: (a) 70% of the lesser of the appraisal or purchase price of the Model Home purchased by the Borrower with the proceeds of that advance, and (b) the amount which would cause the lease payment coverage ratio (as defined in the loan agreement) for such an advance to be equal to (but not less than) 1.25 to 1.00. For each advance made by the Lender to the Borrower, the Borrower will pay an origination charge of 1.0% of the amount of such advance. The Borrower will give the Lender a first priority lien on each Model Home or the lease of each Model Home as part of the advance to the Borrower to acquire such Model Home.
If an Event of Default occurs, the Lender will have the right to take various actions, including a late interest rate, acceleration of amounts due under the loan, and foreclosure of any lien granted to the Lender to secure the loan. payment and performance of obligations under the loan agreement. .
The above summary of the Loan Agreement and the Addendum is qualified in its entirety by reference to the Loan Agreement and the Addendum, copies of which are attached hereto as Schedules 1.1 and 1.2. and incorporated herein by reference.
Item 2.03 Creation of a Direct Financial Obligation or Obligation Under an Off-Balance Sheet Arrangement of a Registrant.
Information set out in response to Item 1.01 of this Form 8-K is incorporated by reference in response to this Item 2.03.
Item 8.01 Other Events.
A copy of the press release issued by the Company announcing the Amendment is included as Exhibit 99.1 of this current report on Form 8-K.
Item 9.01 Financial statements and supporting documents.
(d) Exhibits Exhibit No. Description 1.1 Ninth Amendment to Loan Agreement singed
August 19, 2021. 1.2 Loan Agreement dated February 26, 2016, together with Second Amendment to Loan Agreement dated as of June 29, 2016, Third Amendment to Loan Agreement dated as of April 11, 2017, Joinder and Fourth Amendment to Loan Agreement dated as of February 20, 2018, Fifth Amendment to Loan Agreement dated as of April 11, 2018, Joinder and Sixth Amendment to Loan Agreement dated as of April 11, 2019, Joinder and Seventh Amendment to Loan Agreement dated as May 22, 2020and Eighth Amendment to Loan Agreement dated as of June 26, 2020. 99.1 Press Release, dated August 20, 2021. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
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