1981-137 CRA - Laserfiche WebLink

Home Browse Search

. . . . . . " N.otwithstanding the foregoing, if interest on this N.ote becomes subject to federal income taxation pursuant to an Official determinati.on (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%) ab.ove the Base Rate, determined as above provided; and (b) Agency shall forthwith pay to Bank, or its registered assigns, for the period from the Taxable Date (as hereinafter defined) t.o the effective date of the adjustment reuqired by the foregoing sentence an amount equal to the product of (i) the outstanding principal amount of this Note from time to time during such period 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 Holder 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 continue t.o be payable at the Adjusted Basic Rate while such protest .or contest is pending. If such protest .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 to Agency. Without in any way limiting the survival of any other provision of this Note, Agency hereby expressly agrees that the obligations imposed upon it by this paragraph shall survive payment and discharge of this Note f.or a period of five years. Any principal or interest on the Note n.ot 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 reasonb1e rate, fee or collection charge not exceeDing four percent (4%) of such principal amount. All pri nc ipa 1, interest and other amounts payab 1e on the Note shall be payable in lawful money of the United States of America at the principal office of the Bank in Santa Ana, California, or at such address as any subsequent Holder of the Note shall file with the Agency. So long as the Note is not in default, each installment of principal and interest when paid sha 11 be app 1 i ed by the Noteho 1der fi rst 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 Noteho1der may apply payments, in its election, to principal or interest. Section 2.03. ~ayment of Note. This Note may be prepaid in full or in part, wlthout prepayment penalty or premium, on any installment due date upon thirty (30) days' prior written notice to the Holder of this Note. The Note shall be prepaid concurrently with and to 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 N.ote until 7