The Lohse Company owes First Arbor Bank $350,000 at the end of the current year, but will not have the capital to pay off the loan. Seeing this inability to pay, First Arbor Bank granted the Lohse Company the option to pay yearly installments, over the next four years. First Arbor Bank promises to “do its best” to not call the loan, but still requires there to be a due on demand clause listed on the note. The note will not be called as long as there are no sudden changes in the operations of Lohse Company that would cause the company’s condition to worsen. It is up to First Arbor Bank to decide if such conditions are present, and are the ultimate decision in calling the
