SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES AND EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported) March 29, 1996
AEI REAL ESTATE FUND XVI LIMITED PARTNERSHIP
(Exact Name of Registrant as Specified in its Charter)
State of Minnesota
(State or other Jurisdiction of Incorporation or Organization)
0-16555 41-1571166
(Commission File Number) (I.R.S. Employer
Identification No.)
1300 Minnesota World Trade Center, St. Paul, Minnesota 55101
(Address of Principal Executive Offices)
(612) 227-7333
(Registrant's telephone number, including area code)
(Former name or former address, if changed since last report)
Item 1. Changes in Control of Registrant.
Not Applicable.
Item 2. Acquisition or Disposition of Assets.
On March 29, 1996, the Partnership sold its 50%
interest in a Super 8 Motel in Hot Springs, Arkansas to Jim
and Linda Flannery, the owners of the lessee. The remaining
50% was sold by an affiliated Partnership, AEI Real Estate
Fund XV Limited Partnership. The Flannerys are not
affiliated with the Partnership. The total cash sales price
was $1,360,000.
The Partnership received approximately $678,300 for
its interest in the property and recognized a net gain of
approximately $230,000
Item 3. Bankruptcy or Receivership.
Not Applicable.
Item 4. Changes in Registrant's Certifying Accountant.
Not Applicable.
Item 5. Other Events.
None.
Item 6. Resignation of Registrant's Directors.
Not Applicable.
Item 7. Financial Statements and Exhibits.
(a) A limited number of proforma adjustments are
required to illustrate the effects of the
transaction on the balance sheet and income
statement. The following narrative
description is furnished in lieu of the
proforma statements:
Assuming the Partnership had sold the property
on December31, 1995, the Partnership's
Investments in Real Estate and Accumulated
Depreciation would have been reduced by
$583,653 and $131,056, respectively, and its
Current Assets (cash) would have been
increased by $678,300.
At December 31, 1995, the Partnership would
have recognized a net gain of approximately
$225,700.
(c) Exhibits
Exhibit 10.1 - Purchase Agreement dated
July 25, 1995 between the
Partnership, AEI Real Estate Fund
XV Limited Partnership and Motel
Developers, Inc. relating to the
property at 4726 Central Avenue,
Hot Springs, Arkansas.
SIGNATURES
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned hereunto duly
authorized.
AEI REAL ESTATE FUND XVI
LIMITED PARTNERSHIP
By: AEI Fund Management XVI, Inc.
Its: Managing General Partner
Date: April 2, 1996
By: Mark E. Larson
Its Chief Financial Officer
PURCHASE AGREEMENT
Super 8 Motel
Hot Springs, Arkansas
This AGREEMENT, entered into effective as of the 25 of July, 1995.
l. Parties. Seller is AEI Real Estate Fund XV Limited Partnership
and AEI Real Estate Fund XVI Limited Partnership ("Seller"),
Seller holds an undivided 100% interest in the fee title to that
certain real property legally described in the attached Exhibit
"A" (the "Entire Property") Buyer is Motel Developers, Inc.
("Buyer"). Seller wishes to sell and Buyer wishes to buy the
Entire Property.
2. Property. The Property to be sold to Buyer in this transaction
is legally described on Exhibit A attached hereto, and is sold
along with all easements and rights appurtenant thereto ("Real
Property") and any interest that Seller has in fixtures and
equipment including as set forth on Exhibit B attached hereto
(collectively referred to as "Property") subject to all
easements, convenants, conditions, restrictions and agreements of
record which were in existence at the time Seller took ownership
of the Entire Property, and, if any, those which Lessee (defined
below) has permitted, created, or suffered to accrue, including
but not limited to those items set forth on Exhibit C attached
hereto ("Permitted Exceptions").
3. Purchase Price . The purchase price for this Property is
$1,360,000, all cash, based on the following terms:
4. Terms. The purchase price for the Property will be paid by
Buyer as follows:
(a) When this agreement is executed, Buyer will pay $10,000
("First Payment") to be deposited into Escrow along with the
execution of the purchase agreement.
(b) Balance of purchase price, $1,350,000, ("Second
Payment") to be deposited into escrow on or before closing.
5. Closing Date. Escrow shall close on or before September 15, 1995.
6. Contingencies: This Agreement is subject to the
following contingencies and if they cannot be satisfied or
waived in writing by Buyer within sixty (60) days of this
Agreement, then this Agreement shall be null and void, at
the sole election of Buyer pursuant to a written notice of
termination, sent by certified mail to Seller, return
receipt requested, prior to the end of the sixtieth day. At
said time of termination neither party shall be liable for
damages hereunder.
(a) Buyer's satisfaction with the results of a physical
inspection of the Property including soil tests and any
other review or testing which Buyer determines to undertake.
If the Inspection discloses any conditions which are
unacceptable to Buyer, Buyer shall have the right to
terminate this agreement.
Buyer Initial: J.F.
Purchase Agreement for Super 8 Motel, Hot Springs, AR
(b) Buyer's satisfaction with environmental assessment
("Assessment"). The cost of such Assessment shall be the
Buyer's responsibility.
(c) Buyer's procurement of financing, acceptable to Buyer
in its sole description, in an amount of the Purchase Price
for the purchase of the Property.
(d) Estoppel Cerificate completed within 30 days of closing,
certifying as to the lease commencement date, rent, and that
Seller is in compliance with its obligations under the
lease, signed by the tenant, or, if not obtained by the
Closing Date, Seller may certify to the same.
(e) Seller shall provide Buyer with copies of any post
completion improvements's survey or any environmental report
in its possession.
Seller shall provide Buyer with an affidavit under penalty
of perjury, that Seller is not a "foreign person".
Buyer acknowledges that any of above documents provided and
to be provided by Seller with respect to the Property including
any documents provided by any lessee or guarantors was obtained
from a variety of sources and Seller neither (a) has made
independent investigation or verification of such information, or
(b) makes any representations as to the accuracy or completeness
of such information.
Buyer may cancel this agreement for any reason in its sole
discretion by delivering a cancellation notice, return receipt
requested, to Seller and escrow holder before the expiration of
the sixty day review period. Such notice shall be deemed
effective only upon receipt by Seller.
If Buyer cancels this Agreement as permitted under this
Section, except for any escrow cancellation fees and any
liabilities under sections 15(a) of this Agreement (which will
survive), Buyer (after execution of such documents reasonably
requested by Seller to evidence the termination hereof) shall be
returned its First Payment, and Buyer will have absolutely no
rights, claims or interest of any type in connection with the
Property or this transaction, regardless of any alleged conduct
by Seller or anyone else, arising out of this agreement.
Buyer irrevocably will be deemed to have canceled this
Agreement and relinquish all rights in and to the Property unless
Buyer makes the Second Payment when required. If this Agreement
is not canceled and the Second Payment is made when required, all
of Buyer's conditions and contingencies to Buyer's obligations
hereunder will be deemed satisfied.
7. Escrow. Escrow shall be opened by Seller and funds paid to
seller upon acceptance of this agreement.
8. Title Examination. Seller shall, within thirty (30) days
after the date of this Agreement, furnish to Buyer, a commitment
("Title Commitment") for an ALTA 1990 Owner's Policy of Title
insurance to be issued by a title company reasonable satisfactory
to Buyer insuring title to the Property. Since the title company
does not separate the cost of the title commitment and the
Buyer Initial: J.F.
Purchase Agreement for Super 8 Motel, Hot Springs, AR
Premium for an Owner's title policy, Seller agrees to pay $1,000
of the total cost of title commitment and policy, to be credited
to Buyer at closing if Buyer shall in fact purchase an Owner's
Policy. The Title Commitment will contain updated judgment and
lien searches deleting standard exceptions subject to the
Permitted Exceptions, at no additional cost to Seller, and to be
subject to current real estate property taxes and assessments,
survey exceptions; and other items of record disclosed to Buyer
during the contingency period and will be in the amount of the
Purchase Price.
Within ten (10) business days after receiving the Title
Commitment, Buyer will make written objections ("Objections") to
issues of insurability or marketability raised by the title
evidence. Buyer's failure to make Objections within such time
period will constitute waiver of the Objections. Seller will
have sixty (60) days after receipt of the Objections to cure the
Objections,(and make title insurable over any marketability
objections of Buyer) during which period the Closing will be
postponed as necessary. If the objections are not cured within
such sixty (60) day period, Buyer will have the option to (i)
terminate the Agreement and receive a refund of the First Payment
and the interest accrued and unpaid on the First Payment, if any,
or (ii) waive the Objections and proceed to close.
9. Closing Costs. Seller will pay $1.10 per $1,000 of the deed
stamp or documentary taxes and one-half of escrow fees, and any
brokerage commissions payable. Seller will pay $1,000 towards
the cost of: issuing the title commitment and the title insurance
premium for an Owner's policy. Buyer will pay all recording
fees, one-half of the escrow fees, and $2.20 per $1,000 deed
stamp or documentary taxes, and the cost of an update to the
Survey in Seller's possession (if an update is required by
Buyer). Each party will pay its own attorneys' fees and costs to
document and close of this transaction.
10. Real Estate Taxes, Special Assessments and Prorations.
(a) Because the Entire Property is subject to a triple net
lease and Seller holds no escrow for such taxes, the parties
acknowledge that there shall be no need for actual real
estate tax proration including levied or pending special
assessments. Seller represents that to the best of its
knowledge, all real estate taxes and installments of special
assessments due and payable in all years prior to the year
of Closing have been paid in full.
(b) All income and all operating expenses from the Entire
Property shall be prorated between the parties and adjusted
by them as of the date of Closing. Seller shall be entitled
to all income earned and shall be responsible for all
expenses incurred prior to the date of Closing. (Except to
the extent said expenses are payable by Lessee under its
lease).
11. Sellers Representations and Warranties.
(a) Seller owns good and marketable title to the Property
free and clear of all liens and encumbrances except for
those Permitted Exceptions from title commitment, and has
proper authority of all necessary parties to sell the
Property.
Buyer Initial: J.F.
Purchase Agreement for Super 8 Motel, Hot Springs, AR
(b) To the best of Seller's knowledge: there is no action,
litigation, investigation, condemnation or proceedings of
any kind pending or threatened against Seller with regard to
the Property, or any portion of the Property nor are there
any present violations of any public or private restrictions
relating to the use or improvements of the Property.
(c) To the best of Seller's knowledge: as of the date of
closing all payments will have been made for all labor
and/or materials furnished to the Property by or on behalf
of Seller.
(d) To the best of Seller's knowledge: Seller has not used
or stored hazardous or regulated substances, wastes,
pollutants or contaminants or petroleum products on the
Property nor has Seller discharged or released any such
substances on the Property, including but not limited to,
underground injection of such substances in violation of any
federal, state, or local environmental law, ordinance, rule
or regulation. To the best of Seller's knowledge, no other
party is engaged in any such use storage, discharge or
release. To the best of Seller's knowledge there is no
proceeding or inquiry by any government authority with
respect to the presence of hazardous materials on the
Property or the migration of hazardous materials from or to
other property.
(e) To the best of Seller's knowledge: the Property is
usable for its current uses as permitted uses, without
variances and without violating any federal, state, local or
other governmental building, zoning, health, safety,
platting, subdivision, or other law, ordinance or regulation
or any applicable private restrictions or easement, and
Seller is not aware of any citation, order, violation issued
or threatened by any governmental agency or individual with
respect to any of the foregoing.
(f) To the best of Seller's knowledge: there are now, and
at the Closing there will be, no material, physical or
mechanical defects of the Property, including, without
limitation, the plumbing, heating, air conditioning,
ventilating, electrical systems, and all such items are in
good operating condition and repair and in compliance with
all applicable governmental , zoning and land use laws,
ordinances, regulations and requirements.
(g) To the best of Seller's knowledge: the use and
operation of the Property now is, and at the time of Closing
will be, in full compliance with applicable building codes,
safety, fire, zoning, and land use laws, and other
applicable local, state and federal laws, ordinances,
regulations and requirements.
(h) Seller has no obligation to construct or repair any
improvements thereon or to perform any act regarding the
Property, except as expressly provided herein.
(i) Except for the lease in existence between Seller and
Motel Developers, Inc., Seller is not aware of any other
leases for the Property.
Seller will indemnify and hold Buyer, its successors and
assigns, harmless from and against any expenses or damages
to Buyer incurred as a result of Seller's representations
Buyer Initial: J.F.
Purchase Agreement for Super 8 Motel, Hot Springs, AR
made in this paragraph. Except as herein expressly stated,
Buyer is purchasing the Property, based upon its own
investigation and inquiry and is not relying on any
representation of Seller or other person and is agreeing to
purchase the Property "as is" subject to the conditions of
examination herein set forth in the express warranties
herein contained. Seller's representations and warranties
specifically survive closing for a period of twelve (12)
months from the date of closing.
12. Closing.
(a) Before the closing date, Seller will deposit into
escrow an executed warranty deed subject to Permitted
Exceptions conveying insurable title of the Property and a
Quit Claim Bill of Sale to any personal property interests
of Seller in personalty on the Property, to Buyer, and shall
deliver to buyer an Estoppel Certificate as defined on page 2.
(b) On or before the closing date, Buyer will deposit into
escrow: the balance of the purchase price when required
under Section 4; any additional funds required of Buyer,
(pursuant to this agreement or any other agreement executed
by Buyer) to close escrow. Both parties will sign and
deliver to the escrow holder any other documents reasonably
required by the escrow holder to close escrow.
(c) On the closing date, if escrow is in a position to
close, the escrow holder will: record the deed in the
official records of the county where the Property is
located; cause the title company to commit to issue the
title policy; immediately deliver to Seller the portion of
the purchase price deposited into escrow by cashier's check
or wire transfer (less debits and prorations, if any);
deliver to Seller and Buyer a signed counterpart of the
escrow holder's certified closing statement and take all
other actions necessary to close escrow.
(d) Standard form affidavit by Seller indicating that, to
the best of Seller's knowledge, on the date of closing there
are no outstanding or unsatisfied judgments, tax liens or
bankruptcies against or involving Seller, or the Property;
that there has been no skill, labor and materials furnished
to the Property (other than at the request of Buyer) for
which payment has not been made or for which mechanics liens
could be filed; that there are no other unrecorded interests
in the property.
(e) any affidavits or statements required by Arkansas
statutes regarding storage tanks or well disclosure.
(f) A non-Foreign Affidavit properly executed in recordable
form containing such information as required by IRS 1445(b)
(2) and its regulations.
13. Defaults. If Buyer defaults under this Agreement, Seller
shall have the right to terminate this Agreement by giving
fifteen (15) days written notice to Buyer. If Buyer fails to
cure such default within fifteen (15) days of the date of such
Buyer Initial: J.F.
Purchase Agreement for Super 8 Motel, Hot Springs, AR
notice, this Agreement will terminate, and upon such termination,
and Seller shall retain the First Payment and Extension Payment,
if made, time being of the essence of this Agreement. If Seller
defaults under this Agreement, Buyer may terminate this Agreement
by giving fifteen (15) days written notice to Seller. If Seller
fails to cure such default within said fifteen (15) days of the
date of such notice, this Agreement shall terminate and Escrow
Agent shall return all earnest money and any interest accrued
thereon to Buyer. Notwithstanding the foregoing, Buyer may elect
to seek and recover from Seller specific performance of this
Agreement.
If Seller shall default, Buyer irrevocably waives any rights
to file a lis pendens, a specific performance action or any other
claim, action or proceeding of any type in connection with the
Property or this or any other transaction involving the Property,
and will not do anything to affect title to the Property or
hinder, delay or prevent any other sale, lease or other
transaction involving the Property (any and all of which will be
null and void), unless: it has paid the First Payment, and
demonstrated reasonable evidence of Buyer's ability to produce
the Second Payment, and performed all of its other obligations
and satisfied all conditions under this Agreement, and
unconditionally notified Seller that it stands ready to tender
full performance, purchase the Property and close escrow as per
this Agreement, regardless of any alleged default or misconduct
by Seller. Provided, however, that in no event shall Seller be
liable for any punitive consequential or speculative damages
arising out of any default by Seller hereunder.
14. Buyer's Representations and Warranties.
a. Buyer represents and warrants to Seller as follows:
(i) In addition to the acts and deeds recited herein and
contemplated to be performed, executed, and delivered by
Buyer, Buyer shall perform, execute and deliver or cause to
be performed, executed, and delivered at the Closing or
after the Closing, any and all further acts, deeds and
assurances as seller or the Title Company may require and
Buyer deems to be reasonable in order to consummate the
transactions contemplated herein.
(ii) Buyer has all requisite power and authority to
consummate the transaction contemplated by this Agreement
and has by proper proceedings duly authorized the execution
and delivery of this Agreement and the consummation of the
transaction contemplated hereby.
(iii) To Buyer's knowledge, neither the execution and
delivery of this Agreement nor the consummation of the
transaction contemplated hereby will violate or be in
conflict with (a) any applicable provisions of law, (b) any
order of any court or other agency of government having
jurisdiction hereof, or (c) any agreement or instrument to
which Buyer is a party or by which Buyer is bound.
Buyer Initial: J.F.
Purchase Agreement for Super 8 Motel, Hot Springs, AR
15. Damages, Destruction and Eminent Domain.
(a) If, prior to closing, the Property or any part thereof
be destroyed or further damaged by fire, the elements, or
any cause, due to events occurring subsequent to the date of
this Agreement, this Agreement shall become null and void,
at Buyer's option exercised, if at all, by written notice to
Seller within twenty (20) days after Buyer has received
written notice from Seller of said destruction or damage.
Seller, however, shall have the right to adjust or settle
any insured loss until (i) all contingencies set forth in
Paragraph 6 hereof have been satisfied, or waived; and (ii)
any twenty-day period provided for above in this
Subparagraph 15a for Buyer to elect to terminate this
Agreement has expired or Buyer has, by written notice to
Seller, waived Buyer's right to terminate this Agreement.
If Buyer elects to proceed and to consummate the purchase
despite said damage or destruction, there shall be no
reduction in or abatement of the purchase price, and Seller
shall assign to Buyer the Seller's right, title, and
interest in and to all insurance proceeds (pro-rata in
relation to the Entire Property) resulting from said damage
or destruction to the extent that the same are payable with
respect to damage to the Property, subject to rights of any
Tenant of the Entire Property.
(b) If, prior to closing, the Property, or any part
thereof, is taken by eminent domain, this Agreement shall
become null and void, at Buyer's option. If Buyer elects to
proceed and to consummate the purchase despite said taking,
there shall be no reduction in, or abatement of, the
purchase price, and Seller shall assign to Buyer all the
Seller's right, title, and interest in and to any award
made, or to be made, in the condemnation proceeding, subject
to rights of any Tenant of the Property.
In the event that this Agreement is terminated by Buyer as
provided above in Subparagraph 15a or 15b, the Earnest Money
shall be immediately returned to Buyer (after execution by Buyer
of such documents reasonably requested by Seller to evidence the
termination hereof).
16. Miscellaneous.
(a) This Agreement may be amended only by written agreement
signed by both Seller and Buyer, and all waivers must be in
writing and signed by the waiving party. Time is of the
essence. This Agreement will not be construed for or
against a party whether or not that party has drafted this
Agreement. If there is any action or proceeding between the
parties relating to this Agreement the prevailing party will
be entitled to recover attorney's fees and costs. This is
an integrated agreement containing all agreements of the
parties about the Property and the other matters described,
and it supersedes any other agreements or understandings.
Exhibits attached to this Agreement are incorporated into
this Agreement.
(b) If this escrow has not closed by September 15, 1995,
through no fault of Seller, Seller may either, at its
election, extend the closing date, exercise any remedy
available to it hereunder, or terminate this Agreement.
Buyer Initial: J.F.
Purchase Agreement for Super 8 Motel, Hot Springs,AR
While time is of the essence in this transaction, if this
escrow has not closed by Septemer 15, 1995, if through no
fault of the Seller, Buyer may extend the closing date until
November 15, 1995 by submitting to Seller by September 15,
1995 a $15,000 payment ("Extension Payment") to be credited
toward purchase price, and said Extension Payment shall both
be released to Seller and become non-refundable, though
credited against the Purchase Price should the escrow close.
If this escrow has not closed by the applicable extension
date, through no fault of Seller, Seller may either
terminate this agreement, or exercise any remedy available
to it at law or equity.
(c) Funds to be deposited or paid by Buyer will be good and
clear funds in the form of cash, cashier's checks or wire
transfers.
(d) All notices from either of the parties hereto to the
other shall be in writing and shall be considered to have
been duly given or served if sent by first class certified
mail, return receipt requested, postage prepaid, or by a
nationally recognized courier service guaranteeing overnight
delivery to the party at his or its address set forth below,
or to such other address as such party may hereafter
designate by written notice to the other party.
If to Seller:
Attention: Robert P. Johnson
AEI Net Lease Income & Growth Fund XIX Limited Partnership
1300 Minnesota World Trade Center
30 E. 7th Street
St. Paul, MN 55101
If to Buyer:
Attention: Jim Flannery
17800 Excelsior Blvd.
Minnetonka, MN 55345
Buyer and its duly authorized agents shall have the right
during the period from the date of this Agreement to closing, to
enter in and upon the Property in order to complete the
inspection, assessment, measurements, soil tests and other tests
that Buyer shall deem necessary. Buyer agrees to repair any
resulting damage to the property and to indemnify, hold harmless
and defend Seller from any and all claims by third persons of any
nature whatsoever arising from Buyer's right of entry hereunder,
including all actions, suits, proceedings, demands, assessments,
costs, expenses and attorneys' fees.
Buyer is submitting this offer by signing a copy of this
offer and delivering it to Seller along with the $10,000 First
Payment. Seller has five (5) business days within which to
accept this offer.
IN WITNESS WHEREOF, the Seller and Buyer have executed this
Agreement effective as of the day and year above first written.
Buyer Initial: J.F.
Purchase Agreement for Super 8 Motel, Hot Springs,AR
BUYER: Motel Developers, Inc.
By: /s/ James Flannery Pres
James Flannery, President
SELLER: AEI REAL ESTATE FUND XV LIMITED PARTNERSHIP, a Minnesota
limited partnership.
By: AEI Fund Management 86-A, Inc., its corporate general
partner
By: /s/ Robert P. Johnson
Robert P. Johnson, President
AEI REAL ESTATE FUND XVI LIMITED PARTNERSHIP, a Minnesota
limited partnership.
By: AEI Fund Management XVI, Inc., its corporate general
partner
By: /s/ Robert P. Johnson
Robert P. Johnson, President
Buyer Initial: J.F.
Purchase Agreement for Super 8 Motel, Hot Springs,AR
EXHIBIT "A"
Commence at the Southwest Corner of the S 1/2, NE 1/4 of Section
25, T-3-S, R-20-W, Hot Springs, Garland County, Arkansas, thence
N 02 degrees 03' 00" E along the West line of S 1/2, NE 1/4 for
584.72' to a found 1 1/2" solid iron pin as referenced in survey
by K. L. Camble, Ark. No. 593, thence S 84 degrees 09' 00" E for
1660.45' to the P.O.B., where found a steel spindle 1.65' South.
Thence continue S 84 degrees 09' 00" E for 154.98' where found a
1/2" rebar 1.30 South of line, thence continue S 84 degrees 09'
00" E for 108.27' to a found rail road spike located at the West
R-O-W line of State Hwy. No. 7. Thence along the curve of the R-
O-W, said curve containing elements:
R=786.18', = 12 degrees-06'-31" RT., L-ARC=166.03'with chord N
14 degrees 57' 41" E for 165.72' to a found iron pin & cap set
by Steve Hankins. Thence N 83 degrees 35' 47" W for 287.97'
to a found iron, thence S 06 degrees 23' 10" W for 166.47'
to the P.O.B.
EXHIBIT B
1. Milnor Washer, 30015N4E-AAU, Serial No. 5047207
2. Huebsch Dryer, Serial No. STLK602556VE
EXHIBIT C
Taxes and assessments for the year 1987 and subsequent years, not
yet delinquent. Parcel No. 001-26062-000.
Taxes and assessments for the year 1988 and subsequent years, not
yet delinquent, for Improvement District #S-020 and #W-017.
Easement granted to Southwestern Bell Telephone Company by
instrument dated August 16, 1979 and recorded in Book 915 at Page
461 of the Deed and Mortgage Records of Garland County, Arkansas.
Easement granted to Hot Springs Municipal Sewer System by
instrument dated February 13, 1981 and recorded in Book 993 at
Page 562 of the Deed and Mortgage Records of Garland County,
Arkansas.
A 15 foot Easement for a road along the South side of the insured
tract reserved in the Correction Warranty Deed dated July 15,
1987 correcting the original Warranty Deed dated the 5th day of
March, 1987 and filed in Book 1228 at page 920 of the Deed and
Mortgage Records of Garland County, Arkansas. The rights of
adjoining property owners with respect to the easement are
clarified in an Easement Agreement dated March 4, 1987 and filed
March 6, 1987 in Book 1212 at Page 314 of the Deed and Mortgage
Records of Garland County, Arkansas.
Subject to Agreement to construct and maintain physical barrier
dated July 15, 1987 between Llewellyn Smith and Rita Smith and
Motel Developers, filed in Book 1228 at page 948 of the Deed and
Mortgage Records of Garland County, Arkansas.
Subject to a 5' Easement reserved by Llewellyn Smith and Rita
Smith in the Correction Warranty Deed dated July 15, 1987,
correcting the original Warranty Deed dated March 5th, 1987, and
filed in Book 1228 at Page 920 along the West side of the Tract
herein conveyed to provide Llewellyn Smith and Rita Smith, their
heirs, successors and assigns the right to enter upon the herein
reserved easement for the purpose of repairing and maintaining
those portions of the mini-storage warehouses owned by Llewellyn
Smith and Rita Smith which are adjacent to the West property line
of the property herein conveyed to Motel Developers.
Subject to a Sign Easement reserved in the Correction Warranty
Deed dated July 15, 1987 correcting the original Warranty Deed
dated March 5, 1987 and filed in Book 1228 at Page 920 of the
Deed and Mortgagte Records of Garland County, Arkansas, described
as follows: Begin at a point 3.5 feet West and 21.5 feet North
of the SE corner of said property; thence North 84 degrees 09
minutes 00 seconds West along the center of an easement 10.0 feet
wide for 10.0 feet to a point 21.5 feet North of the South line
of said property.
Subject to a sewer line easement retained by Llewellyn B. Smith
and Rita F. Smith in the Correction Warranty Deed dated July 15,
1987, correcting the original Warranty Deed dated March 5, 1987,
and filed in Book 1228 at Page 920 of the Deed and Mortgage
Records of Garland County, Arkansas, over said property described
for the purpose of sewage disposal, said easement extending to a
manhole that is 46.0 feet North of the Southeast corner of said
property.
Subject to overhead power lines, buried electric power lines, and
buried water service lines, as shown on survey dated November 30,
1987 and prepared by Don Michael Brady, RLS #1024.
