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HomeMy WebLinkAboutContract 13078 CONSENT TO ASSIGNMENT OF RENTS AND LEASES AND TO DEED OF TRUST UPON LEASEHOLD THE STATE OF TEXAS § CITY SECRETARY COUNTY OF TARRANT § C0t,fTF,',,ACT Nc�12z� This agreement is made between: (1) the City of Fort Worth, a municipal corporation located in Tarrant County, Texas, acting through its Assistant City Manager, Morris C. Matson, hereinafter called "Lessor"; (2) Don E. Hansen, an individual, hereinafter called "Lessee", (3) Meacham Aero & Associates, LTD. , a Texas limited partnership, hereinafter called "Sublessee", and (4) Mercantile Bank of Fort Worth, acting through its President, L. Keller Smith, hereinafter called "Bank." WHEREAS, Lessor and Lessee have entered into a lease agreement ( "City Lease") whereby Lessor has leased to Lessee certain real estate, rights and privileges at Meacham Field, Fort Worth, Tarrant County, Texas, said agreement being on file in the office of the City Secretary of the City of Fort Worth as City Secretary Contract No. 12939; and WHEREAS, on April 24, 1983, Lessee entered into an agreement with Sublessee whereby Lessee subleased its rights and privileges under said City Secretary Contract No. 12939 to Sublessee, which sublease was consented to by Lessor on WHEREAS, Bank, Lessee and Sublessee now desire to have Lessor consent to the assignment of a portion of the City Lease by Sublessee to Bank, by the creation of a deed of trust lien upon a portion of Sublessee's leasehold estate in the City Lease and to Sublessee' s assignment of rents and leases in the City Lease; NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS: In consideration of the mutual covenants and agreements con- tained in this agreement, the parties hereto agree as follows: OFFICIAL RECORD ir CiTy SE" E f W Tli, TE)L l,, OR 1. Lessor consents to the execution and delivery by Sublessee to Bank of: (1) a deed of trust in the form or forms attached hereto as Exhibit "A" and none other whereby Sublessee grants to Bank a deed of trust lien upon Sublessee's leasehold estate under the City Lease, and (2) the assignment of rents and leases under the City Lease by Sublessee to Bank, a copy of which assignment is attached hereto as Exhibit "B". 2. Lessor agrees that the rights of Lessor to cancel any or all of the City Lease or to require surrender of all or part of the City Lease shall not be enforced or exercised by Lessor against Bank un- less Bank fails to assume and perform Lessee's obligations under the City Lease to the satisfaction of Lessor within thirty (30) days after Lessor notifies Bank of the occurrence of any of the events authorizing cancellation or surrender of the City Lease. Without limiting the foregoing Lessor agrees to use reasonable diligence to notify Bank of the occurrence of any event authorizing cancellation or surrender as soon thereafter as it can reasonably do so. 3. Lessor agrees that, when giving notice to Lessee with respect to any default under the provisions of the City Lease, Lessor shall at the same time also give a copy of the notice to Bank. 4. Lessor agrees that Bank shall have the right to make good or cure any default by Lessee under any of the provisions of the City Lease within the time provided in the City Lease, whether the de- fault consists of failure to pay rent or failure to perform any other covenant, matter or thing which Lessee is thereunder required to do or perform to the satisfaction of Lessor. Lessor agrees to accept performance by Bank as though the same had been done or per- formed by Lessee. -2- 5. Notwithstanding any other provision hereof, Lessor shall take no action in the case of default by Lessee under any provisions of the City Lease to effect the termination of the City Lease as to Bank without first giving to Bank a reasonable time, but not less than thirty (30) days, within which to cure the default in the case of a default which is susceptible of being cured by Bank. However, no rights of the City of Fort Worth as a home rule municipal corporation, as the owner of the real property in question or as the Lessor in the City Lease as aforesaid shall be lessened, diminished, delayed or in any way affected in a manner that is detrimental to the City of Fort Worth or because of the execution by Lessor of this agreement. 6. It is agreed that all proceeds payable under fire and casualty insurance required to be carried by Lessee under the terms of the City Lease shall first be applied to the replacement of the facili- ties or improvements and to the satisfaction of all obligations then due or to become due to Lessor in accordance with the terms of the City Lease; if not so applied, the proceeds shall then be applied to the payment of Lessee's indebtedness to Bank. These policies shall also name Bank as a loss payee of such policy of insurance. 7. Lessor and Lessee agree that, in the event of the initiation of proceedings for condemnation by Lessor of Lessee's leasehold es- tate, Lessor shall also notify Bank. 8. Lessor and Lessee agree that nothing contained herein shall im- pose any obligations on Bank to perform any of the obligations of Lessee under the City Lease unless Bank shall assume actual posses- sion of the premises or request Lessor to delay or cause Lessor to delay the enforcement or protection of any of its rights under the -3- City Lease, whether by termination or otherwise. Upon assumption of actual possession of the premises, or by requesting or causing delay as aforesaid, Bank shall be deemed to have assumed all of the duties and obligations of Lessee under the City Lease. 9. Lessor may take all action available to it under the City Lease, at law or in equity, in order to protect its interest as Lessor under the City Lease, including, but not limited to, cancel- lation of Lessee's interest, in which event Lessor will honor Bank's interest as provided for in this agreement. 10. Bank, shall promptly notify Lessor in writing when Bank has re- leased its rights under the deed of trust mentioned in Paragraph 1 of this agreement. 11. Any notice required to be given to Bank under the provisions of this agreement shall be given by mailing the same, certified mail, return receipt requested, to: Mercantile Bank of Fort Worth 2550 Meacham Boulevard Fort Worth, Texas 76111 Attention: L. Keller Smith, President 12. Lessor acknowledges, by executing this agreement, that the City Lease is valid and now in full force and effect, and that Lessor has no notice of any default under the City Lease. Lessor agrees that, by execution hereof, it has received all notice contemplated by the City Lease as to the assignment of Lessee's interest in the City Lease. 13. In the event Bank forecloses upon Lessee under the Deed of Trust, Lessor agrees that any purchaser thereunder from Bank shall have the same rights, remedies and responsibilities that Bank has under this agreement. -4- 14. This agreement shall be binding and inure to the benefit of the heirs, personal representatives, successors and assigns of the re- spective parties hereto. EXECUTED this day of 19 Z5 CITY OF FORT WORTH LESSEE: ON E. HANSEN E � Assistant ATTEST: ATTEST: City�ecret ry Notary Public APPROVED AS TO FORM AND LEGALITY: S SUBLESSEE: MEACHAM AERI I ASSOCIATES, LTD. City Attorney Date: By- Eon E. Hansen ATTEST: Public MERCANTLI E BANK OF FORT WORTH ar,7 0 By: L. Keller 5ttith,...- resident ATTEST: Corporate Secretary ' `s `v'iEttl./9i~b t ilt t3Ahlk ill I(_)iY( W(3R1 Pi EXHIBIT "A" DEED OF TRUST SECURITY AGREEMENT FINANCING STATEMENT THE STATE OF TEXAS COUNTVOF_ TARRANT This instrument is entered into between the Undersigned(hereafter called"Mortgagor'and L. Kej1 g` Cmith (hereafter called'Trustee`)as trustee for the benefit of Mercantile Bank of Fort Worth,2550 Meacham B!vd..P.O.Box 7777,Fort Worth.Texas 76111 _,(hereafter called Back'). SECTION I. DEFINITIONS. 1 1 The term'Mo,lgari Premises means the following described real properly and personal property which is or will become fixtures(list personal properly by Item or type). LEASEHOLD ESTATE ONLY: (SEE LEGAL DESCRIPTION ATTACHED HERETO AND MARKED EXHIBIT "A") together with all improvements now or hereafter placed upon s,ich property and all appurtenances,servitudes,rights.ways,privileges,prescriptions and advantages in any way thereunto belonging or appertaining z The term obligations"means TWO HUNDRED FIFTY THOUSAND AND NO 100---- . A A promissory note of even date herewith in lice principal s—of -----------_------------- ----- Dollars,5250,000-.00 1 executed by Mortgagor and payable to the order of Bank,2550 Meacham Blvd.,Fort Worth,Texas,or such other place as the holder of the note may designate In venting,with interest at the rate of_- 1� per annum on terms therein contained. B Al:promissory notes evidencing addn.coal loans wh%ch Bank may nereafter make to Mortgagor(although it is understood that Bank Is under no obligation to do so). C. AID other indebtedness and Ilablhties cf an kends o1 Mortgagor to Hank cow existing or hereafter ending,whether fixed or contingent,Icmt arl several,direct or,nduect.primary or secondary.and regardless of how created or evidenced. D Atl sums advanced or costs or expenses incurred by Bank(whether by d directly or on its behalf by the Trustee)which are made or incurred pursuant to or allowed by,the terms of this insrume nt,plus Interest thereon at the rate of ten per cent(10°.)per annum from the date paid until reimbursed.and E All renewals and extersrons el all of the above whether or not Mortgagor executes any renewal or extension agreement. SECTION IL CONVEYANCE IN TRUST. In cons,derat on of Bank s advancing or extending to Mortgagor the funds or credit constituting the Obligations and in further consideration of the rr. 1-1 convenents herein contained Mortgagor by this In strame,t conveys to Trusteethe ahove descnbed MorlgageC Premises in trust,forthe purposeof secu gsuchOblgaLons TOHAVE AND TOHOLD the Mortgaged P.emisestogether with Ins rights,privileges and appurtenances thereto belonging unto t . Tr stea and his substitutes or successors forever and Mortgaopr is herehy hound to warrant and forever defend the Modgaged Premises unto the iu,sicr.his substdutes olsuccessorsanrl lheirassigns aq,instThe clanns of ai l persons-temrngany merest in the Mortgaged Premises or any part thereof SECTION III. MORTGAGOR'S REPRESENTATIONS AND WARRANTIES. In o cer to inn ce Bank:o-tend or co rue lins 11111int-Ine;s ndp Jed by the Ohllgahon .Mortgagor represents and covenants that A Accurate Loan Information.All f.frmat- con.ained F slatr-I-Is rai h d or to be furnished Bank by or on behalf of Mortgagor m crnincrh n tic the O galic ns s c.red by t - nst ........t is rr n.'I he comfleie and a.c rate B VahcTitle ry Tq;go n as yak d and defra >lettl.^to the Mortgaged Premisesand hasaegol t ri to g rant and convey same to Trustee for the benef t o.Ben' and V or,gagor stab if req,Iested by Ban,.exe late all proper add:,on, assurances of tale. C Free From Encumbrances,The Mr.rtpaged Premises are free I—a l liens.security Interests or other encumbrances except as specifically set forth above or as prmi—ol by Inc p ov5inns o'pa rags pn D of Section IV D Property Included as Fixtures P I v ones n­,and n s . s storm '1r send doors.mantels.cabinets,rugs.carpeting,linoleum. vale d J T a d?o herb sloe s h&feS t s pit- d oII er II' I Ir vng v,dr J rql ,, In,t.water healers.radiator covers.and If Iumb ng,hen —, I-1 uq.r c 4 nq ent 1 coal g air co d ron—and efrlgera.ng aPP.raPas and equipment,and such goods and h.,tees and pd,Su adl open I e I u it .-:.f 'd ny Iandl�-1.. n Ielt nq in i micro shed Du Id ng or wn on are or shall be attached to said fu I c,in by ra Is sc ews t'lln, I I e con I t n-rasonry or n L r er ma rine, and all add pons thereto and replacements thereof,and such EuiR-i eq .merf�;shown by Pl ns dogs <c c all Drs are and shall be ceemec'o bet xtures and a-cessonsto the Mortgaged Premises.being ' oDy ag end tp be immovah es and a pit of the re_It as berwcen the pates hereto and s"al'be deemed to be a part of the Mortgaged es a r E Representations,Warranties and Covenants of Corporate Mortgagor.If Moutgagp'is a corporation 1 It is,and shall continue to be.(a)duly r'gan zed and exist cg under the laws of tme t _in wr ch t is ncorpprated.(d;duly authorized to execute and deliver the written instruments ramp The obi gatrons and this Insirl ent and tc ohserve and perform s nuties thereunder and hereunder.2.its officers executing the ,sru its comers nq part o all of the C,b ligahons are the legally elected q�abhed and acting officers of the corporation and have been exp ly au,hoi,z d t..execut _ c'1 inst I menu by resoluhgn of•ha corporation s board of directors and 3,it shall not,without Bank-s prior v,r Ito consent rcorq lmze c s lidate cr merge with any of"er corporation SECTION IV. MORTGAGOR'S COVENANTS. As to g as any of the Obi at ma s'r poi P1 tq go s a '11 Mo tgaonrs own expense) A Ma-ntam Premises and Permit Inspection C the fTC gager,P ^r ,to be r a nta ned in good cond tion and cause to be made all repairs veal cplacon t -1. x mi rot=ih oaf or thr to and permit lice Trustee and Bank(through its agents and employees)to e n,r TI r trta P tI e p p I q.:ng on' csPetllg the.cond eon and operation of'he Mortgaged P l - r1 1 Tlap s1 II r laktay itrijormions to in e Mgigaocl Pre—ises without Banks prior written consent. B 0- ,en Vacanc'es K ( 't a mr Cve e Iy rirnM [I-gedo r,ISes so as act 1c impair the insurance carried thereon,and in It r ne n r. t t n� ra t a l d -n n aea t In n ore:han thirty consecutive days.Bank may require trio Trustee to take h rssn r f..,c Novi m it a and Inn sc 11 l less the reasonable costs and expenses of collection thereof shall be anPin 1 I I t dl Ili n TiTignc a C No Sale of Pre ises1J, ei.t ( rep rya par a11olth=M TquurdPerrs-(rega unless of whether th e huge r or assignee"assumes I Ot l I -'t 9k t G1 r g d Pn es tut t c O I ialions)n thous'rst obtaining Bank s priorwniten consent,provided, 5 -,Ir 7 ar q 1 t sal.s of st Hard 1,rr to, fetus I the orm dry course of Mortgago,s business. C Preeenf Other Enc mbra ices L .e the 1 to i J P r ses is k-pt f,ee and clear of liens.charges.security interests.and encumbrances I ry cr r olt an I I _ u 1 .. .cam! an-n: aced by lhsi n strument 2 taxes constituting a lion but not due and payahle, 3 f>lert n^7 1 t a 1 l,:vr s r r ty me 1 n i s or cu-prances wh c r in Bank's opinion are not such as to interfere I:.Irr ill tic tr '•1 at rn I, .'.f tic col -rt,nPe "era N ofs 'h as in affect matenally title thereto.4 those above se( 1 I p 1 -n1 t I .r 1 th :ot iI-c nlrsl f Ir oa f ,,;,y VI,Iga r)rI-sun manrcras no!to I—P rdize Bank'srights in nut to P Ii Mg W i c df II ens. T ,it., c trr by P, k.a of Mgr qn it"pvc la I,dP it shall preserve and mainlam the liens and othrr c nr t I �r r L """,!"d a f a d I r r r r mh arse on the Me ca T d Premises. Carry Insurance.C s ,a I.,;.t d f s, I e _ ,a f f o r t t,satsfactory to dark insurance In respect of the Improvements now or hereafte Ieeatt i nn t d a tqa 1 d or,­­, t -until r or dam�agc by tire.w ndstorm,a d any other hazards as may reasonably be required from hr'elotrreb Flank o-r,ngihet_;r— ,f ti eObligations hereby secured totheextent ofthe tote amount of the Obligations hereby secured,or to the extent of:^e fill r-bl- value of said irnprovemonts.whichever Is the lesser,in such form and with such Insurance company or comPan_s as may b aN wed by Bank M tgagor sha debver to Bank a.Ch insurance polices naming it as loss payee and having attached thereto standard mo tq geaclauses M-tgagcr>.all also elver'erewnts of such policies to Bank at least twenty(20)days before any such rscrancc policies shall expire All such insu— a policies shall provide the maximum prior written notice to Bank of cancellation which the rsurance horrpan es, II provide Mortgagor hereby assigns tD Bank all of Ma lgago(s rights,title and interest in all such policies of insurance and aclin—'es Bank to collect Tor.adjust or compron sn any losses under any insurance policy on the Mortgaged Premises.and all loss o,pceeds)le ss expenses of echoer—)sha11.x Ranks opt o,,be applied to payment of the Ob'igations(regardless of whether the Obligations.or env Part thereof.are then due)or to the restoration of the Mortgaged Premises.or may be released ( Mortgagor,but any such application or re case shall not core or wawe any default. F Pay Recording Expenses and any Liens.I at t�'crtgago�s ex Dense this and every oiler instrument in addition or supplement thereto nc lading applicable fmancnq statements in such offices and at such times and as o'ten as may be necessary in Back's opinion to preserve, protect and renc-w the liens and other encumbrances herein erewpokas a first lien or prior encumbrance on real or personal property as the case may be,and Morigagcr shall do are perform all natters or things necessary or expedient to be done or observed by reason of any law or regulation of any State or of the United States or at any other competent authority for the purpose of effectively creating,maintaining and presernng the liens and other encumbrances created therein. FORM 115 1 EXHIBIT "A'' FIELD NOTLS FOR llASE SITE N0. 8 FORT WORTH MUNICIPAL AIRPORT MEACHAM FIELD A tract of land out of the James Wallace Survey, being d part o1 a tract conveyed to the City of Fort Worth by deed recorded in Volum: 1112, Page 574, Deed Records, Tarrant County, Texas, and' also being a pon ion of Fort Worth Municipal Airport, Meacham Field, more particularly WLribed using the Texas Coordinate System, North Central Zone, coordinates and bearings as follows: COMMENCE at a . point in the west line of North Main Street and the north line of 38th Street, said point being an easterly southeast corner of Meacham Field, THENCE: North no degrees 28 minutes 39 seconds east 685.115 feet and north'89 degrees 31 minutes 21 seconds west 540.0 feet to the point of be- yinning, said beginning point being the southeast corner of the herein de- scribed Lease Site No. 8, the coordinates of said beginning point are: X = 2,045,154.75, Y = 417,638.34; THENCE: South no degrees 28 minutes 39 seconds west 200.0 feet for the south- east corner of Lease Site No. 8; THENCE•: North 89 degrees 31 minutes 21 seconds west 180.0 feet to a point for the southwest corner of Lease Site No. 8; THENCE: North no degrees 28 minutes 21 seconds east 200.0 feet to the north- west corner of Lease Site No. 8, and the southwest corner of Lease Site No. 9; THENCE: South 89 degrees 31 minutes 21 seconds east along the south line of Lease Site No. 9 and the north line of Lease Site No. 8, 180.0 feet to the place of beginning and containing 36,000.0 square feet of land more or less. PUBLIC WORKS DEPARTMENT KEITH A. SMITH, P.E. , DIRECTOR JOHN L. JONES, P.E. , ChIFF ENGINEER EPD:tm 9-24-80 G. Pay Charges Accruing to Premises.Promptly pay or cause to be paid when due and owing.1,all rentals payable in respect of the Mortgaged , Premises;2.all expenses including insurance premiums incurred in or arising from the normal use and ownership of the Mortgaged Premises,3. all taxes,assessments and governmental charges legally imposed upon the Mortgaged Premises,the interest therein created by this instrument, or upon Mortgagor in connection with the normal use and operation of the Mortgaged Premises and 4.exhibit receipts showing payment of all such Items to Bank;provided,however,if prepayment deposits are required as a result of paragraph°H"below,the obligations imposed by this paragraph shall be deemed to have been satisfied by Mortgagor's making such prepayment deposits as and when due,and it will be unnecessary for Mortgagor to exhibit to Bank receipts showing payment of such items; H. Reserve For Expenses.If Mortgagor's initials are contained in this block __�,deposit with Bank with and in addition to installment payments on the Obligations(if any)a sum equal to one-twelfth of the estimated an nual ground rents,taxes,hazard insurance premiums and other charges referred to in paragraph"G"above next due on the Mortgaged Premises.If the amount so paid is not sufficient t0 pay such items as and when they become due,then Mortgagor Shall deposit Immediately with Bank an amount sufficient to pay such items.If there occurs an Event of Default'as hereafter defined,Bank may at any time thereafter apply the balance then remaining of the funds accumulated under this provision as a credit against the amount then remaining unpaid under the Obligations.No interest shall accrue or be allowed on any payments made under the provisions of thus paragraph, — 1. Construction being advanced by Bank construct rid any su o improvements,an materials and supplies placed on the Mortgaged use part plans all of the Obligations g g s initials are contained in this clock g y reef and complete certain improvements on the Mortgaged Premises according to plans and specifications submitted b Mortgagor to Bank a pp p tgaged Premises,and the Mortgaged Premises themselves shall be impressed with and the same are hereby impressed with and charged with,not only the liens created by this deed of trust,(security agreement and financing statement,)but m addition thereto an express Mechanic's.Materialmans and Laborer s Lien for all advances made hereunder,with the express understanding that failure to complete the improvements as agreed shall not invalidate such hens but they shall remain in full force and effect as security for payment in full of the Obligations,and Mortgagor shall further carry workmen compensation insurance and public liability and property damage insurance in amounts and with companies satisfactory to Bank and subject to the same requirements conlamad in paragraph E of Sect.on IV dealing with insurance on the Mortgaged Premises.and J. Pay Late Charges.If any installment payment of the Obligations is paid more than 15 days aflermedue date thereof,payto Bank a late charge not exceeding 4°a of the amount of the delinquent payment for the purposes of reimbursing Bank for its extra expenses incurred in handling such delinquent installment paymel but th,s late charge shall not be payable out of the proceeds of any sale made to satisfy the Obligations secured hereby unless such proceeds are sufficient to discharge all of the Obligations and other amounts owing hereunder. SECTION V. PROVISIONS REGARDING SECURITY INTEREST IN FIXTURES. Mortoagor owns other real estate,and is familiar with and experienced in borrowing money upon the security of real estate,and particularly,the execution and delivery of deeds of trust,security agreements and financing statements.Mortgagor has been advised by its counsel that certain recent decisions of the Supreme Court of the United Sates accord a delinquent debtor the oppertunay of prior notice and or a judicial hearing,after reasonable notice,before the creditor may be permitted to proceed with his statutory or contractual remedies,but that a debtor,with a full understanding Of his rights, may in advance waive his rights to the opportunity of receiving prior notice of a proposed foreclosure sale or other foreclosure action by the creditor orthe opportunity of a prior judicial hearing,all reasonable notice thereof.in the event the creditor proposes to undertake enforcement Of,his statutory Or contractual remedies by reason ofthedefault ofthe debtor Undersigned MOrtgagorfully understands Mortgagor's rights In this regard and hereby waives Mortgagor's rights to 1,receive prior notice of any proposed sale by the Trustee or other foreclosure sale under this deed of trust,security agreement and financing statement,and,for Mortgagor's right to a prior judicial hearing,after reasonable notice,attendant to the enforcement by the Beneficiary, Its successors or assigns,of any of the contractual or statutory remedies of the Bai lclery in the event of any uncorrected default by the Mortgagor In the perforate nce of any of the terms,provlsions or conditions of this deed of trust,security agreement and financing statement or the above described obligations. To the extent permitted by law,this deed of trust also shall be construed to be a security agreement whereby and whereunder Mortgagor,as Debtor. creates and grants to Bank,as Secured Party.a security interest in and to all fixtures and improvements now or hereafter erected upon oraffixed to any of the above described property as additional(but not substituted)security and collateral for the payment of the above described obligations.As Secured Party. Bank shall have all of the rights,remedies and reliefs accorded to a Secured Party under the Texas Business and Commercial Code(and particularly,The Texas Uniform Commercial Code),including(but not limited 10)the right to require the MDrigagoras Debtor,to assemble the collateral and make it available to Bank,as Secured Party,at a place to be designated by Bank,as Secured Party which is reasonably convenient to Bank and to the Mortgagor.m addition. this deed of trust also shall be construed to be a financing statement.This deed of trust is to be filed for record in the Deed of Trust Records of Tarrant County. Texas. SECTION VI. EVENTS OF DEFAULT. 6 1 Acts Constituting Default.Mortgagor will be in default under this instrument upon the happening of any of the following events or conditions (hereafter called an"Event of Default") A. Mortgagor fails to pay when due any principal or interest owing under any of the written instruments comprising part or all of the Obligations or otherwise breaches any of the provisions contained in said written instruments; B. Any warranty or representation made in this instrument by Mortgagor is determined by Bank to be untrue in any material respect, C. Within thirty(30)days after notice thereof from Bank,Mortgagor fails to cure a default in the due performance or observance of any covenant or agreement contained in this instrument, D. Subsequent to the date of execution of this instrument,there is passed any law which deducts any hen on the Mortgaged Premises from the value of the Mortgaged Premises for pusposes of state or local taxation of deeds of trust and security agreements or debts secured thereby,or which chan k ges the manner of collection of any such taxes in such a way that Bans interest In the Mortgaged Premises is adversely affected; E. Mortgagor makes an assignment for the benefit of creditors, becomes insolvent, commits an act of bankruptcy,files for dankruptcy.or involuntary bankruptcy proceedings are instituted or threatened against Mortgagor;or the Mortgaged Premises are attached or otherwise levied upon or placed in the hands of a receiver or other representative of a court or F. A substantial portion of the improvements on the Mortgaged Premises aredamaged ordestroyed.cr Mortgagor's to eto the Mortgaged Premises or any substantial part thereof becomes the subject matter of litigation which would or might,in Banks opinion,upon final determ.rahon result m substantial impairment or loss of the security provided by this instrument. 6:2 Acceleration upon Default.Upon the occurrence of any such Event of Default or at any time thereafter,Bank may,at its option,declare the entire unpaid principal of and the Interest accrued on the Obligations to be lorihwith due and payable wit hout any notice,presentment.protest,notice of protest or demand of any kind all of which are hereby expressly waived. SECTION VII. BANK'S RIGHTS UPON DEFAULT. 7.1. Operation of Property by Trustee.Upon the occurrence of an Event of Default or at any time thereafter,and in addition to all other rights herein conferred on the Trustee,the Trustee(or any person,firm or corporation designated by the Trustee]may but will not be obligated to,enterup0n and take possession of any of the Mortgaged Premises,exclude Mortgagor therefrom,and hold,use administer,manage and operate the same to the _ extent that Mortgagor could do so.If the Mortgaged Premises consist of any type of business enterprise,the Trustee may operate and manage such business without any liability to Mortgagor resulting therefrom(excepting failure to use ordinary care in the operation and management of the Mortgaged Premises);and the Trustee may collect,receive and receipt for all proceeos accruing from such operation and management,make repairs and purchase needed additional property,and exercise every power right and privilege of Mortgagor with respect to the Mortgage Premises.When and if the expenses of such operation and management have been paid and the Obligations paid,the Mortgaged Premises shall be returned to Mortgagor(providing there has been no foreclosure sale), 7'.2. Judicial Proceedings.Upon the occurrence of an Event of Default,or at any time thereafter,the Trustee in lieu of or in addition to exercising the power of sale hereafter given,may proceed by legal action to require the specific performance of any covenant or agreement herein contained of to aid in the execution of any power herein granted;to have appointed a receiver pending any foreclosure hereunder or any sale of the Mortgaged Premises,to enforce any other appropriate legal or equitable remedy,and,or in feu of the non-judicial power of sale hereafter given,to proceed by suit for a foreclosure of its lien on the Mortgaged Premises.In connection with any such judicial proceeding instituted for the purpose of foreclosing on and selling the Mortgaged Premises,Mortgagor agrees not to assert in the same proceleding any counterclaims Mortgagor may have against Bank. 7:3. Foreclosure by Sale. A. Mechanics of Sale. Upon the occurrence of any Event of Default,or at any time thereafter,the Trustee shall, in response to Bank's re- quest(which Mortgagor agrees will be presumed to have been given) enforce this trust or agreement by selling the Mortaged Prem- en their entirety or in parcels,as the Trustee may elect,to the highest bidder for cash at public auction in the following manner: Written or printed notices containing the time, place and terms of sale shall be pasted at the courthouse door of the county or counties where the Mortgaged Premises are located for a m rim m period of twenty one(21) consecutive days prior to the sale. In addition, Bank shall, at least twenty one(21) days preceding the date of sale, serve written notice of the proposed sale by certified ail, return receipt requested, on Mortgagor and all other debtors obligated to pay the Obligations secured hereby. Service of such notices shall be completed upon deposit of the notices. earl in postpaid wrappers,properly addressed to Mortgagor and to such debtors at the most recent address for each as shown by Bank's records, in a post office or official depository under the care and custody of the United States Postal Service.Thereafter,the sale shall take place at the courthouse door of the county where the Mort- gaged Premises are located on the first Tuesday in any month between the hours of 10:00 o'clock A.M. and 4:00 o'clock P.M., pro. vided however, if the Mortgaged Premises are located in more than one county, such sale may take place at the courthouse door of any of the counties wherein a portion of the Mortgaged Premises is located, and the aforesaid notices shall specify the county of sale.Any purchaser or purchasers will be provided with a general warranty conveyance binding Mortgagor.Sale of a part of the Mort- gaged Premises will not exhaust the power of sale, and sales may he made from time to time until all the property is sold or the Obligations are paid in full.The Trustee will have the authority to appoint an attorney-in fact to act as trustee in conducting the fore- closure sale and executing a deed to the purchasers. B. Certain Aspects of Sale.Bank will have the right to become the purchaser at any sale of the Mortgaged Premises,and Bank will have the right to credit upon the amount of the bid made therefore the amount payable out of the net proceeds of such sale to it.Recitals contained in any - conveyance to any purchaser at any sale made hereunder will conclusively establish the truth and accuracy of the matters therein stated. including,without limiting the generality DI the foregoing,non-payment of the unpaid principal sum of(and the interest accu red on)the written instruments constituting part or all of the Obligations after the same have become due and payable.advertisement and conduct of such sale in the manner provided herein,and appointment of any successor Trustee hereunder.Mortgagor does hereby ratify and confirm all legal acts that the Trustee may do in carrying out the Trustee's duties and obligations under this instrument. C. Receipt to Purchaser.Upon any sale made under the power of sale herein granted,the receipt of the Trustee will be sufficient discharge to the purchaser or purchasers at any sale for his,her,its or their purchase money;and such purchaser or purchasers will not,after paying such purchase money and receiving such receipt of the Trustee,be obliged to see to the application of such purchase money or be in anywise answerable for any loss,misapplication or non-application thereof. D. Effect O1 Sale.Any sale or sales of the Mortgaged Premises will operate to divest all right,title,interest,claim and demand whatsoever either at law or in equity,Of Morgagor in and to the premises and the property sold,and will be a perpetual bar,both at law and in equity,against Mortgagor,Mortgagor's successors or assngcis,and against any and al!persons claiming or who shall thereafter claim all or any of the property sold from,through or under Mortgagor,or Mortgagor's su eaessOrs or assigns.Nevertheless,it requested by the Trustee so to do.Mortgagor shall join in the execution and delivery of all proper conveyances,assignments and transfers of the properties so sold.The purchaser or purchasers at the foreclosure sale will receive,as incident to his,her,its or their ownership,immediate possession of the property purchased,and Mortgagor agrees that i}Mortgagor,or any person claiming under Mortgagor,whether tenant or otherwise,retains possession of the Mortgaged Premises, or any part thereof,subsequent to such sale.Mortgagor will be considered a tenant at sufferance of the purchaser or purchasers and will,if Mortgagor remains in possession after demand to remove,be gwity of forcible detainer and will be subject to eviction and removal,forcible or otherwise,with Orwitho ut process of law;and all damages by reason thereof are hereby expressly waived All rental or lease agreements hereafter entered into by Mortgagor in connection with the Mortgaged Premises shall be expressly made subject to this provision. E. Application of Proceeds.The proceeds of any sale of the Mortgaged Premises crany part thereof,whether under the power of sale hereingranted and conferred or by virtue of judicial proceedings,will be applied as follows.FIRST—TO the payment of all expenses incurred bythe Trustee in the performance of his duties including,without limiting the generality of the foregoing,court Costs,compensation of agents and employees, legal fees,and a commission of five per cent(5/)to the Trustee plus expenses of any entry or taking of possession,sale,advertising or conveyance thereof;SECOND—To the payment of the Obligations;and THIRD—Any surplus thereafter remaining will be paid to Mortgagor or Mortgagor's successors or assigns,as their interest may appear. F. Waiver of Appraisement Laws.Mortgagor waives the benefit Of all laws now existing or hereafter enacted providing for 1.any appraisement before sale of any portion of the Mortgaged Premises(commonly known as Appraiserl Laws)or 2.any extension of time for the enforcement of the collection of the Obligations or any creation or extension of a period of redemption from any sale made in collecting the Obligations 2 (commonly known as Stay laws and Redemption laws);and Mortgagor hereby agrees and contracts that the laws of the State of Texas,save as above excepted,now in force relative to the collection cf the Obligations,and the application to the paymentthereof,are expressly adopted and made a part hereof. - SECTION Vlll. MISCELLANEOUS. _ 8:1. Successor Trustees.The Trustee may resign in writing addressed to Bank or be removed at anytimewith orwithout cause byan instrument in writing duly executed by Bank.In case of death,resignation or removal ofthe Trustee,a successor Trustee may be appointed by Bank without other formality than an appointment and designation in writing.Such appointment and designation will be full evidence of the right and authority to make the same and of all facts therein recited,and upon the making of any such appointment and designation,this conveyance will vest in the named successor Trustee all the estate and title of the Trustee in all of the Mortgaged Premises,and said successor will thereupon succeed to all the rights,powers, privileges,immunities and duties hereby conferred upon the Trustee.All references in this instrument to the Trustee will be deemed to refer to the _ Trustee from time to time acting hereunder. 8:2. Advances by Bank or the Trustee.Each and every covenant herein contained shall be performed and kept by Mortgagor solely at Mortgagor's expense.If Mortgagor fails to perform or keep any of the covenants of whatsoever kind or nature contained in this instrument,Bank,or the Trustee or any receiver appointed hereunder,may,but will not be obligated to,make advances to perform the same in the Mortgagor's behalf,and Mortgagor hereby agrees to repay such sums and any attorneys fees incurred in connection therewith upon demand plus interest at the rate of ten per cent(10%) per annum.This amount will be in addition to any sum of money which may,pursuant to the terms and conditions of any written instruments comprising part or all of the Obligations,be due and owing apart from the principal and interest thereon.No such advance will be deemed to relieve Mortgagor from any default hereunder. - 8:3. Defense of Claims.Mortgagor shall promptly notify Bank in writing of the commencement of any legal proceedings affecting Bank's interest in the Mortgaged Premises,or any part thereof,and shall take such action,employing attorneys agreeable to Bank,as may be necessary to preserve Mortgagor's and Bank's rights affected thereby;and should Mortgator fail or refuse to take any such action,Bank may take such action on behalf of and in the name of the Mortgagor and at Mortgagors expense.Moreover.Bank may take such independent action in connection therewith es in its own discretion itdeems proper,and Mortgagor hereby agrees to make reimbursement for all sums advanced and all expenses incurred in such action plus interest at the rate of ten per cent(101/6)per annum. 8:4. Termination.If ell the Obligations are paid in full and the covenants herein contained are well and truly performed,then the Mortgaged Premises will revert to Mortgagor and the entire estate,right,title and interest of the Trustee and Bank will thereupon cease;and the Trustee in such case shall,upon the request of Mortgagorand at Mortgagor's cost and expense,deliver to Mortgagor prior instruments acknowledging satisfaction of this instrument. 8:5. Renewals,Amendments and Other Secuilty.Renewals and extensions of the written instruments constituting part or all of the Obligations may be given at anytime,amendments may be made to agreements relating to any part of such written instruments orthe Mortgaged Premises,and Bank may take or hold other security for the Obligations without notice to or consent of Mortgagor.The Trustee or Bank may resort first to such other security or any part thereof,or first to the security herein given or any part thereof,or from time to time to either or both,even to the partial or complete abandonment of eithersecurity,and such action will not be a waiver of any rights conferred by this instrument,All amendments to and modifications of this instrument must be in writing signed by Bank. 8:6. Instrument an Assignment,Etc.This instrument will be deemed to be and may be enforced from time to time as an assignment,chattel mortgage, contract,deed of trust,financing statement,real estate mortgage,or security agreement,and from time to time as any one or more thereof if appropriate under applicable state law. 8:7. Limitation on Interest.No provision of this instrument or of the written instruments constituting part or all of the Obligationswill require the payment of or permit the collection of interest in excess of the maximum permitted by law or which is otherwise contrary to law.If any excess of interest in such respect exists herein or in said written instruments,or are adjudicated to be so provided for herein or in said written instruments Mortgagorwill not be obligated to pay such excess,and Bank shall refund to Mortgagor all such excess interest with interest thereon at the rate of two per cent(21/6)per annum which the parties hereto agree will be in lieu of all amounts payable to Mortgagor under state usury laws. 6:8. Unenforceable or Inapplicable Provisions.If any provision hereof or anyofthe written instruments constituting part or all of the Obligations is invalid or unenforceable,the other provisions hereof or of said written instruments will remain in full force and effect,and the remaining provisions hereof will be liberally construed in favor of the Trustee and Bank in order to carry out the provisions hereof.If the lien or otherencumbrances created by this instrument are invalid or unenforceable as to any part�of the Obligations.or if the liens or other encumbrances are invalid or unenforceable as to any part of the Mortgaged Premises,the unsecured or partially secured portion of the Obligation shall be completely paid prior to the payment of the remaining secured or fully secured portion of the Obligations,and all payments made on the Obligations,whether voluntary or under foreclosure or other enforcement action or procedure,shall be Considered to have been first paid on and appliedto the full payment of that portion of the0bligations which is not secured or fully secured by the liens or other encumbrances created by this instrument. 8:9. Rights Cumulative.Each and every right,power and remedy herein given to the Trustee or Bank will be cumulative and not exclusive:and each and every right,power and remedy whether specifically herein given or otherwise existing may be exercised from time to time and as often and in such order as may be deemed expedient by the Trustee,or Bank,as the case may be,and the exercise,or the beginning of the exercise,of any such right, power or remedy will not be deemed a waiver of the right to exercise,at the same time or thereafter,any other right,power or remedy.No delay or omission by the Trustee or by Bank in the exercise of any right,power or remedy will impair any such right,power or remedy or operate as a waiver thereof or of any other right,power or remedy then or thereafter existing. 8:10. Waiver.Any and all covenants in this instrument may from time to time by Instrument in writing signed by Bank be waived to such extent and in such manner as Bank may desire,but no such waiver will ever affect or impair Bank's rights hereunder except to the extent specifically stated in such written instrument.Acceptance by Bank of any payment in an amount less than that portion of the Obligations then due and owing shall be deemed an acceptance on account only and not a waiver,and the failure to pay the entire amount then due shall continue to be an Event of Default. 8:11. Join Several Llabllity.The term"Mortgagor"as used in this instrument will be construed as singular or plural to correspond with the number of persons executing this instrument as Mortgagor.If more than one person executes this instrument as Mortgagor,his,her,their,or its duties and liabilities under this instrument will be joint and several. 8:12. Section and Paragraph Headings.Section and paragraph headings are used in this instrument for convenience only and shall be given no substantive meaning or significance whatsoever in the construction and interpretation of the terms and provisions herein contained. 8:13. Rights of Assignee.The terms"Bank"and"Mortgagor"as used in this instrument include the heirs,executors or administrators,successors, representatives,receiver,trustees and assigns of those parties.This instrument is binding upon the Mortgagor,his,her or their heirs and legal representatives,and Mortgagor's successors and assigns,and will inure to the benefit of the Trustee and the Trustee's successors and Bank and its successors and assigns.It is understood and agreed between the parties hereto that Bank may assign any part or all of the Obligations and this instrument to a third party who shall become entitled to all rights and benefits given herein to Bank.In particular,the insurance policies referred to in paragraph E.of Section IV.above shall be rewritten to show such third parry as the mortgagee entitled to exercise all rights given to Bank in such paragraph E. 8:14. Place of Performance.The duties and obligations herein imposed on Mortgagor are performable in Fort Worth,Tarrant County,Texas. 8:15. Counterparts.This instrument may be executed in any number of counterparts,each of which will for all purposes bedeemed to bean original,and all of which are identical. SECTION IX. ADDITIONAL PROVISIONS. (In the event cf a conflict between the printed provisions of this instrument and the additional provisions(if any)contained in this Section,the latter shall control.) EXECUTED this._. 28th day of April__ 19_83 Ltd. MEACHAM AERO & ASSOCIATES4 a Limited Mortgagor/Debtor: Partnership _By- Address anBa,,of the Trustee /, 0 `� r and Bank: Atldress. GL•�c P.O. Box 7777 Fort Worth, Texas 76111 TYPE OF COLLATERAL:Fixtures and Improvements 3 �— 0 c I, E aai N ILL. o 'e o F ED Q O m w Ll.l O Lu a LU d q U it CORPORATE ACKNOWLEDGMENT THE STATE OF TEXAS X X COUNTY G. _... _........ X BEFORE the undersigneo authority,on this day personally appeared ,. President of __. _.. _.. .,a corporation,known to me to be the-rson whose name is subscribed to the foregoing instrument and acknowledged to me that he had executed the same far the purposes and considerations therein expressed,as the act and deed of said corporation,in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of ___ .. _ _..... 19. Notary Public ,.._. _. _.._...._County,Texas SINGLE OR JOINT ACKNOWLEDGMENT THE STATE OF TEXAS X COUNTY OF Tarrant __. _ - _._ Xyt .�`„���t C� try ���•/ pr` Ltd. BEFORE ME,the undersigced authority.on this day personally appeared/of Meacham Aero. &.Associates./, ayyLimeit7e�,d. known to me to be the personisl _. _._.whose nan i _. is _subscribed to the foregoing instrument,andacRp.TMI'a IP _ Stated. executed the same for the purpose and cy s(!�de ration therein expressetl and in the CaPaC ity t�el; in GIVEN UNDER MY HAND AND SEAL OF OFFICE this ... ";..� l r/ �• day of -. „t t9 ..a Notary Public`*• , � - ("f � _. _. County,Texas 1 CERTIFICATE OF COUNTY CLERK _ "HE STATE OF TEXAS X X COUNTY OF _ X The undersigned County Clerk does hereby certify that the above arid foregoing instrument with its certificate of au thenh cation was filed for registration in my office on _ _. _ __.. 19 at _._.. o'clock M and duly recorded on __ ._.._ ..... 19__ __. at ___ _. _. __.... o'clock _. M. in Vol. _. Page -- of record of __.for said County. -- WITNESS my hand and seal of office on the day and date last above written. CLERK OF __. .. _. __. __..COUNTY,TEXAS By Deputy EXHIBIT "B" ASSIGNMENT OF RENTS AND LEASES THE STATE OF TEXAS ) COUNTY OF TARRANT ) REFERENCE is here made to a Deed of Trust (the "Deed of Trust") dated April 28, 1983, executed by MEACHAM AERO & ASSOCIATES, LTD., a Texas Limited Partnership ("Assignor") to L. Keller Smith,Trustee, covering the following described property (herein called the "Premises", which includes all improve- ments of any description whatever now existing or hereafter placed on the property): Assignor's leasehold estate interests in the property described on attached Exhibit "A" The Deed of Trust and this assignment are given for the purpose of securing MERCANTILE BANK OF FORT WORTH ("Bank") in the payment of certain indebtedness as more particularly set out in the Deed of Trust and below. FOR VALUE RECEIVED and for the purpose of securing and further securing Bank in the payment of the secured indebtedness described below, Assignor does hereby sell, assign, transfer and grant to Bank, its successors and assigns, all leases and rental contracts which have been or which may hereafter be executed covering any prt of the premises and all resnts, issues, profits and income of any description now due or hereafter becoming due under or by virtue of any lease (whether written or oral) or any letting or any agreement for the use or occupancy of any part of the premises. This assignment is made for the purpose of securing Bank in the payment of the following described indebtedness (herein called the "secured Indebtedness"): (a) All indebtedness now owed or hereafter arising by Assignor to Bank including the following: Date of Note Amount of Note April 28, 1983 $250,000.00 (b) All other liabilities for which Assignor is now or may hereafter become liable (including without limitation overdrafts in a bank account) either primarily or secondary, absolutely or contingently, directly or indirectly, and whether matured or unmatured, joint, several, or joint and several, regardless of whether the same originated with Bank or was originally payable to or in favor of someone other than Bank and is or was acquired by Bank by assignment or other transfer; and (c) Any and all extensions or renewals of or sub- stitutions for any of the foregoing indebtedness or liability or any part thereof. Upon the occurrence or existence of an event of default under the Deed of Trust or any note or other liability which is secured indebtedness hereunder, Bank may exercise all rights of Assignor under the terms of any and all such lease and rental contracts or agreements. Bank shall have the right, at any time such default exists, to make and enter into agreements with lessees and tenants, increasing or reducing rentals or otherwise changing the terms of any lease or rental contract and to enter into new leases and rental contracts with any parties in the name of Assignor or otherwise on such terms and containing such covenants and agreements as the Bank may consider appropriate. Bank is hereby authorized, in case of any such default, to collect and receive all rents and income hereafter accruing from the premises, and may execute good and suffi- cient receipts for same. All money so collected, prior to foreclosure of the Deed of Trust and except as otherwise provided herein, shall be applied to make good .any default which may occur in the payment of the secured indebtedness (in such order as Bank may elect) . Bank from time to time may waive its right hereby given to collect rents and income, but any such waiver shall not prejudice its right thereafter to collect all rents and income on any subsequent occasion. - Bank shall have the right, in the event of any such default, but shall not be required, to sue for the collec- tion of any unpaid rents and other income and for cancella- tion or forfeiture of any lease or rental contract in default and for possession of the leased premises and may exercise all appropriate rights and remedies in connection therewith. The expense of collection, including reasonable attorneys' fees, may be paid out of rents or other income collected from said premises. Bank shall never be held liable for failure to collect rent or other income, but shall only be held accountable for funds actually received by it prior to foreclosure of the Deed of Trust. Assignor agrees that, without having first obtained written consent from Bank, Assignor will not make any change or modification in any lease covering said premises, and will not exercise any option contained in any lease or take action to forfeit same, and will not collect or accept payment of any rental for more than one month in advance, except as may be required to be paid in advance by the express terms of the lease or leases now in force; and unless such consent is first obtained, no change, modifi- cation, payment or exercise of option or forfeiture so made shall be valid or effective as against Bank. Assignor further agrees to promptly inform Bank in writing of notices received from any lessee with respect to any obligation or default under any lease. Assignor also agrees to perform all obligations binding on lessors under all leases covered hereby. Assignor agrees that the collection of such rentals and income by Bank shall in no way relieve Assignor from any of the obligations imposed upon Assignor by any note, the deed of trust or any other agreement with Bank, and shall not constitute a waiver of Bank's right to accelerate the maturity of any secured indebtedness nor of Bank's right to proceed with the enforcement of said Deed of Trust or the exercise of any other right or remedy upon occurrence or existence of any event of default under the Deed of Trust or any note the payment of which is secured hereby, the purpose of this instrument to give Bank the right, if it so desires, prior to and during foreclosure, to collect rentals and income and, after paying all collection expense, to apply the same toward making good any default in the payment of any of the secured indebtedness (in such order as Bank may elect), as well as to enter into lease contract and rental agreements. Neither Bank's acceptance of this assignment nor any act of Bank hereunder shall be construed as a waiver of the priority of the lien of said deed of trust as to any lease or contract made subsequent to the date of the deed of trust. This assignment shall be binding upon and shall inure to the benefit of the legal representatives, successors and assigns, respectively, of the Assignor and Bank; and shall terminate and become null and void upon full and final payment of all of the secured indebtedness. r EXECUTED this 28th day of April, 1983. MEACHAM AERO & ASSOCIATES, LTD., a Texas Limited Partnership BY: STATE OF TEXAS ) COUNTY OF TARRANT ) This instrument was acknowledged before me on` by Don E. Hansen. Notary Public, Stat (' f Texas FIELD NOTES FOR tIASF SITE NO. ti FORT WORTH MUNICIPAL AIRPORT MEACHAM FIELD A tract of land out of the James Wallace Survey, being a part of a tract conveyed to the City of Fort Worth by deed recorded in Volume 1112, Page 574, Deed Records, ldrrant County, Texas, and also being o portion of Fort Worth Municipal Airport, Meacham Field, more particularly described using the Texas Coordinate System, North Central Zone, coordinates and bearings as follows: COMMENCE at a point in the west line of North Main Street and the north line of 38th Street, said point being an easterly southeast corner of Meacham Field, THENCE: North no degrees 28 minutes 39 seconds east 685-A feet and north'89 degrees 31 minutes 21 seconds west 540.0 feet to the point of e- ginning, said beginning point being the sout b heast corner of the herein be- scribed Lease Site No. 8, the coordinates of said beginning point are: X = 2,045,154.75, Y = 417,638.34; THENCE: South no degrees 28 minutes 39 seconds west 200.0 feet for the south- east corner of Lease Site No. 8; THENCE•: North 89 degrees 31 minutes 21 seconds west 180.0 feet to a point for the southwest corner of Lease Site No. 8; THENCE: North no degrees 28 minutes 21 seconds east 200.0 feet to the north- west corner of Lease Site No. 8, and the southwest corner of Lease Site No. 9; THENCE: South 89 degrees 31 minutes 21 seconds east along the south line of Lease Site No. 9 and the north line of Lease Site No. 8, 180.0 feet to the place of beginning and containing 36,000.0 square feet of land more or less. PUBLIC WORKS DEPARTMENT KEITH A. SMITH, P.E. , DIRECTOR JOHN L. JONES, P.E. , CHIFF ENGINEER EPD:tm 9-24-80 i City of Fort Worth, 'rexas Mayor and Council Communication DAZE REFERENCE SUBJECT: NUMBER Request to Sublease -Don E. Hanser PAGE 5/24/83 **c- 6909 to Meacham Aero & Associates, Itd. - Background Under City Secretary Contract No. 12939, Don E. Hansen leases 99,000 square feet of unimproved land on Meacham Field. Mr. Hansen has constructed a hangar on a portion of the lease site. The hangar measures approximately 1001 x 120' and cost about $250,000. Mr. Hansen sought and received the City's permission to assign the lease to Mercantile Bank of Fort Worth for the permanent financing of the construction. Permission was grant on April 5, 1983 (M&C C-6831), During the process of preparing the document for the City's consent to the assignment, the Department of Law discovered that the bank's loan had been made to Meacham Aero & Associates, Ltd., a Texas limited partnership of which Mr. Hansen is a principal. To effect the proper procedure, the City must consent to a sublease from Don E. Hansen to Meacham Aero & Associates, Ltd., then consent to the assignment by Meacham Aero & A-sociates, Ltd., of rents and leases under the sublease and to a deed of trust from Meacham Aero & Associates, Ltd. to Me�,Icantile Bank of Fort Worth. When contacted by telephone on May 19, 1983, the Aviation Advisory Board recommended that the sublease and assignment be approved. Recommendation It is recommended that the City Council authorize the City Manager Lo execute,. (1) A sublease from Don E. Hansen to Meacham Aero & Associates, Ltd. and, (2) A consent to assignment of security interest in. the sublease and deed of trust from Meacham Aero & Associates, Ltd. to Mercantile Bank of Fort Worth, as provided above. MCM:jc SUBMITTED FOR TH CITY MANAGER'S DISPOSITION By COUNCIL PROCESSED BY OFFICE BY: APPROVED ORIGINATING OTHER HIDESCRIBE) DEPARTMENT HEAD: Ike Thompson ------ CITY S CRErArl1 FOR ADDirt ONAL INFORMATION L_CONTACT: Loretta Scott 624-1127 DATE .............. .......... ........ ....................