PROMISSORY NOTE
FOR THE VALUE RECEIVED, Mountain States Capital, Inc.("Borrower"), an
Arizona Corporation, hereby jointly and severally promise to pay to the order of
The Heritage West Preferred Securities Income Fund ("Lender"), whose principal
place of business is located at 3550 North Central Avenue Suite 1800, in the
city of Phoenix, state of Arizona the sum of five hundred thousand dollars
$500,000), together with interest thereon at the rate of 18% per annum (1.5% per
month) on the unpaid principal as follows: all accrued interest on or before the
last day of July and August 2000 and the remaining outstanding principal and
interest balance on or before the last day of September 2000.
This Note may be prepaid, at any time, in whole or in part, without
penalty. All payments shall be first applied to interest and the balance of the
payment to principal.
Borrower agrees to pay any commissions due and owing to any third party as
a result of this Note.
Borrower waives demand and presentment for payment, protest, notice of
protest and notice of nonpayment. In the event this Note shall be in default,
Borrower agrees to pay all reasonable attorney fees and costs of collection.
Any extension, modification, waiver, or other indulgence or discharge or
release of this Note must be in writing. This Note be construed, governed and
enforced in accordance with the laws of the State of Arizona.
/s/ Chad Collins 6/29/00
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Chad Collins, President, Mountain States Capital, Inc. Date
/s/ Craig Jolly 6/29/00
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Craig Jolly, The Heritage West Preferred Securities Income Fund Date
