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necessary; (3) any premiums for property insurance purchased on behalf of the undersigned or on behalf of the owner(s) of the Collateral pursuant to
<br />any secudty instrument relating to the Collateral; (4) any expenses or costs incurred in defending any claim adsing out of the execution of this Note or
<br />the obligation which it evidences, or otherwise involving the employment by the Bank of attorneys with respect to this Note and the obligations it
<br />evidences; and (5) any other charges permitted by applicable laW. The undersigri~ agree to pay such authorized charges on demand or, at the Bank's
<br />option, such charges may be added to the unpaid balance of the Note and shall accrue interest at the stated Rate. Upon the occurrence of an event of
<br />default, interest shall accrue at the Default Rate.
<br />Small Business Closing Fees and Charges: In addition to any other amounts owed under the terms of this Note, the undersigned agree to pay the
<br />following nonrefundable fees or charges at closing:
<br />
<br /> Waivers
<br /> The undersigned and each other Party waive presentment, demand, protest, notice of protest and notice of dishonor and waive all exemptions, whether
<br /> homestead or otherwise, as to the obligations evidenced by this Note. The undersigned and each other Party waive any rights to require the Bank to
<br /> proceed against any other Party or person or any Collateral before proceeding against the undersigned or any of them, or any other Party, and agree
<br /> that without notice to any Party and without affecting any Party's liability, the Bank, at any time or times, may grant extensions of the time for payment
<br /> or other indulgences to any Party or permit the renewal or modification of this Note, or permit the substitution, exchange or release of any Collateral for
<br /> this Note and may add or release any Party primarily or secondarily liable. The undersigned and each other Party agree that the Bank may apply all
<br /> monies made available to it from any part of the proceeds of the disposition of any Collateral or by exercise of the right of setoff either to the obligations
<br /> under this Note or to any other obligations of any Party to the Bank, as the Bank may elect from time to time. The undersigned also waive any rights
<br /> afforded to them by Sections 49-25 and 49-26 of the Code of Virginia of 1950 as amended.
<br /> TO THE EXTENT LEGALLY PERMISSIBLE, THE UNDERSIGNED WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY LITIGATION RELATING TO
<br /> TRANSACTIONS UNDER THIS NOTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE.
<br /> Judgment By Confession
<br />The undersigned hereby duly constitute and appoint DeI31'~s P. Smith or Linda F. l:~_gsby as the
<br />true and lawful attorney-in-fact for them in any or all of their names, place and stead, and upon the occurrence of an event of default, to confess
<br />judgment against them, or any of them, in the Circuit Court for the City/County of Ma._.-~±nsvi 1 le , Virginia, upon this Note
<br />and all amounts owed hereunder, including all costs of collection, attorneys' fees equal to 25% of the unpaid principal balance hereof and court costs,
<br />hereby ratifying and confirming the acts of said attorney-in-fact as if done by themselves, expressly waiving benefit of any homestead or other
<br />exemption laws.
<br />
<br />Severability, Amendments And No Waiver By Bank
<br />Any provision of this Note which is prohibited or unenforceable shall be ineffective to the extent of such prohibition or unenforceability without
<br />invalidating the remaining provisions of this Note. No amendment, modification, termination or waiver of any provision of this Note, nor consent to any
<br />departure by the undersigned from any term of this Note, shall in any event be effective unless it is in wdting and signed by an authorized employee of
<br />the Bank, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. If the interest
<br />Rate is tied to an external index and the index becomes unavailable during the term of this loan, the Bank may designate a substitute index with notice
<br />to the Borrower. No failure or delay on the part of the Bank to exercise any right, power or remedy under this Note shall be construed as a waiver of the
<br />right to exercise the same or any other right at any time.
<br />Liability, Successors And Assigns And Choice Of Law
<br />Each of the undersigned shall be jointly and severally obligated and liable on this Note. This Note shall apply to and bind each of the undersigned's
<br />heirs, personal representatives, successors and assigns and shall inure to the benefit of the Bank, its successors and assigns. This Note shall be
<br />governed by the internal laws of the Commonwealth of Virginia and applicable federal law. The undersigned agree that certain material events and
<br />occurrences relating to this Note bear a reasonable relationship to the laws of the Commonwealth of Virginia. The validity, terms, performance and
<br />enforcement of this Note shall be governed by applicable federal law and the internal laws of the Commonwealth of Virginia which are applicable to
<br />agreements which are negotiated, executed, delivered and performed solely in the Commonwealth of Virginia.
<br />By signing below, the undersigned agree to the terms of this Note.
<br />
<br />Individual Signature(s)
<br />
<br />Non-Individual Signature(s)
<br />
<br /> Mart~nsv.,. ]. 1._,
<br /> School Board of the City of ' '" ~
<br />
<br />Borrower Signature Borrower
<br /> By.
<br /> Signature
<br /> Chuck W. Davies, Chairman
<br />Borrower Signature
<br /> Name and title, printed or typed
<br />
<br />Borrower Signature Borrower
<br /> By
<br /> Signature
<br />Borrower Signature
<br /> Name and title, printed or typed
<br />
<br />By signing below, the following Endorsers each agree to be bound by all the terms of this Note.
<br />
<br />Endorser Name, printed or typed
<br />
<br />Endorser Signature
<br />
<br />CRE-0261 VA 05/01 )
<br />630106
<br />
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