1981-139 CRA - Laserfiche WebLink

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. . . . . . Notwithstanding the foregoing, if interest on this Note bec.omes subject to federal income taxationpursuant to aN Official determination (as hereinafter defined): (a) the rate of interest otherwise in effect on this Note shall be increased to a rate ("Adjusted Basic Rate") per annum equal to one-half percent (.5%) above the Base Rate, determined as above provided; and (b) Agency shall forthwith pay to Bank, or its registered assigns, for the peri.od fr.om the Taxable Oate (as hereinafter defined) to the effective date of the adjustment reuqired by the foreg.oing sentence an amount equal to the product of (i) the outstanding principal amount .of this Note from time to time during such perio and (ii) the difference between the Adjusted Basic Rate and the Basic Rate during such period. If more than one pers.on has been the h.older of this Note during such period, such amounts shall be allocated among such holders in accordance with the number of days furing which this Note was held by each such holder during such period. Any holder of this Note may protest or contest any Official Determination. If an Official Determination is protested or contested, interest shall c.ontinue to be payable at the Adjusted Basic Rate while such pr.otest .or contest is pending. If such pr.otest or contest is successful, the holder hereof shall apply all interest collected at a rate in excess .of the Basic Rate in reduction of the principal hereof .or any other amounts owing hereunder, or if such principal and all such other amounts have been paid in full, such excess shall be refunded t.o Agency. Without in any way limiting the survival of any other provision of this N.ote, Agency hereby expressly agrees that the .obligations i""osed upon it by this paragraph shall survive payment and discharge of this Note for a period of five years. Any principal or interest .on the N.ote not paid when due shall thereafter bear interest at a rate equal to five percent (5%) per annum in excess of the rate otherwise in effect on the Note. In addition to such interest, the agency shall pay upon demand a reas.onble rate, fee or collection charge not exceeding four percent (4%) of such principal am.ount. All principal, interest and other amounts payable on the N.ote shall be payable in lawful money of the United States of America at the principal office of the Bank in Santa Ana, Calif.ornia, .or at such address as any subsequent Holder .of the Note shall file with the Agency. So l.ong as the N.ote is n.ot in default, each installment of principal and interest when paid shall be applied by the Noteholder first to the payment of interest accrued on the Notes, and the balance thereof to the payment of principal. When any default hereunder has occurred and is continuing, the Noteholder may apply payments, in its election, to principal .or interest. Section 2.03. Prepayment of Note. This Note may be prepaid in full or in part, without prepayment penalty or premium, on any installment due date upon thirty (30) days' prior written n.otice to the holder of this N.ote. The Note shall be prepaid concurrently with and t.o the extent of any prepayment on any Participant Note (as defined in the Project Agreement referenced below). Each prepayment shall be applied to principal but Agency shall continue to pay installments in the amounts and at the times required in this Note until 7