January 21, 1965 - Indenture

On January 21, 1965, an indenture was signed by Donna and Kenneth Finnestad for a promissory note in the amount of $8,000 with an interest rate of 5 1/2% to purchase the Browne school property.   The final payment on this loan was scheduled to be due on January 1, 1975.  

This loan for the purchase of the Browne school property does not account for the down payment.   I believe the purchase price was $12,000 which would indicate a $4,000 down payment was provided to the sellers, Jeannette and Ronald Aska.

For some perspective on the specifics of this loan, $8,000 in 1965 would be approximately $65,729.28 in 2020 adjusted for inflation.   The interest rate of 5 1/2% was slightly higher than the average at the beginning of 1965 for a 10 year loan, which was 4.2%.    As this loan was provided by a private party, Margaret and Leonard Cummins, it is not uncommon for a higher interest rate to be used due to the higher risk a private party has as opposed to a financial institution.

 

Margaret (Olson) Cummins and Leonard Cummins were the godparents to the Finnestad children.   The memorial for Margaret Cummins can be found here.    The memorial for Leonard Cummins can be found here.