9.   Secured Note Payable

On May 30, 2023, and in connection with the Company’s investment in Shem Creek Sachem 100 LLC (one of the Company’s wholly-owned subsidiaries), the Company obtained a commercial loan from PeoplesBank of $7,000,000. At closing the Company had an outstanding principal balance of $6,224,000 with the ability to draw an additional $776,000 so long as there are no existing events of default under the loan agreement. The loan accrues interest at a fixed annual rate of 6.50%. The loan has an original maturity date of June 20, 2026 and a one year extension option that defers the maturity date until June 20, 2027. During the first 36 payment periods, only interest is due and payable, after which principal must be repaid for the remainder of the loan term under a thirty (30) year amortization schedule. The PeoplesBank loan is non-recourse, secured by a first lien on the Shem Creek Middlesex mortgage receivable, as described in Note 18. As of June 30, 2023, the outstanding balance remained at $6,224,000.