TCI had preliminary discussions with Midbank about borrowing money to finance the warehouse expansion and the growth of the business.The proposed terms of the financing called for taking down (I.e., borrowing) the Ioan in two separate parts on an as-needed basis: one in 1996 and one in 1997. The loan would be repaid in four equal annual instellments. The first installment payment would take place one year after the construction of the warehouse was completed (i.e., in 1998). The interest rate was set at 10% per year.