LOAN AGREEMENT

WHO (lender) hereby agrees to loan $AMOUNT to Walnut Street Cooperative for use in the purchase of property.

Term of the loan is: # years

The interest rate shall be #%, compounded on a quarterly basis.

The amortizing payment of $AMOUNT shall be made every three months starting at the end of the first full quarter after the loan has been deposited by Walnut Street Cooperative. The loan is amortized at 30 years; however, at the end of the initial loan period of # years, the remaining principal will be due along with the interest payment.

At the end of the initial loan period, the lender and Walnut St. Co-op may jointly elect to renew the loan at an interest rate and term to be determined at that time.

In the event of the dissolution of the Co-op, lenders will receive the remainder of funds owed after the property is sold. In the event of dissolution, disbursements will be made in the following order:

1. First, any debts that were secured in exchange for an interest in Walnut Street Cooperative property must be fully satisfied.
2. If any money remains, any debts that were not secured in exchange for an interest in Walnut Street Cooperative property must be fully satisfied.
3. Members will receive the amount of their financial investment in the Cooperative (according to specifications of the Bylaws with regard to equity and/or interest payments), or a proportional amount of the remaining assets, whichever is less.
4. All remaining money or assets will be distributed to a non-profit corporation which is organized to promote cooperative living, or another not-for-profit organization as determined by the members.

The loan from WHO is included in category (2) above. If the funds from sale are insufficient to repay all lenders in full, then all the lenders in category (2) will share a proportional amount of funds available.

In the event that Walnut Street Cooperative elects to pay back the loan in part or in full prior to the conclusion of the term of the loan, there will be no penalty.

Walnut Street Cooperative will issue an annual 1099-int form to the lender and to the IRS outlining the interest accrued during each one year period.

Agreed by Lender:

___________________________________________________________________________________________________ Signed..........................Printed...........................Social Security #........................Date

___________________________________________________________________________________________________ Address

___________________________________________________________________________________________________ Phone......................................................Email

Agreed by Walnut Street Cooperative:

___________________________________________________________________________________________________ Secretary/Treasurer........................................Date