1981-137 CRA - Laserfiche WebLink

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1---- . . . . . . '. Notwithstanding the foregoing, if interest .on this Note 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 Basi c Rate") per annum equal to one-half percent (.5%) above the Base Rate, determined as above provided; and (b) Agency shall forthwith pay t Bank, or its registered assigns, for the period from the Taxable Date (as hereinafter defined) to 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 person 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 N.ote may pr.otest or contest any Official Determinati.on. If an Official Determination is protested or contested, interest shall continue to 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 sha 11 be refunded to Agency. Without in any way limiting the survival of any .other provision of this Note, Agency hereby express ly agrees that the ob 1 igat ions imp.osed upon it by th i s paragraph shall survive payment and discharge of this Note for a period .of five years. The term "Official Determination" shall mean (and for all purposes of th i s Note shall be deemed to have occurred as of) a change in the Internal Revenue Code of 1954, as amended, the issuance of a statutory not ice .of deficiency, or ruling by the Internal Revenue Service .or a ruling by any court of competent jurisdiction, or any other occurrence, the effect .of which, in the .opinion of nationally-recognized b.ond counsel acceptable to Agency and Bank, is to make interest payable on this Note includable in the gr.oss income of the holder hereof (except to the extent that such interest is so includable because the holder is a "substantial user" .of any of the Projects referenced below or a "related person" as such terms are defined in Section 103 of the Internal Revenue Code of 1954, as amended). The fees and expenses of any such bond counsel in connecti.on with such .opinion shall be an obligation of Agency payable from the same source and secured in the same manner as are all other obligations evidenced hereby. The term "Taxable Date" shall mean the date as of which interest payable on this Note is includable in the gross income of a holder of this N.ote by reason of an Official Determination. Any principal or interest on this Note 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 this Note. In addition to such interest, the undersigned promises to pay upon demand a reas.onable late. fee or c.ollection charge not exceeding four percent (4%) .of such unpaid amount.