1981-140 CRA - Laserfiche WebLink

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. . . . . . Notwithstanding the foregoing, if interest on this Note becomes subject to federal income taxation pursuant 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, detennined 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) 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 peri.od. If more than one person has been the Holder of this Note during such period, such arJI()unts 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 H.older of this Note may protest or contest any Official Determination. If an Official Detennination is protested or contested, interest shall continue to be payable at the Adjusted Basic Rate while such pr.otest 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 for a period of five years. Any principal .or interest on the 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 the Note. In addition to such interest, the Agency shall pay upon demand a reasonble rate, fee .or collection charge not exceeding four percent (4%) of such principal am.ount. All principal, interest and other amounts payable on the Note shall be payable in lawful m.oney 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. S.o long as the Note is n.ot in default, each installment .of principal and interest when paid shall be applied by the Noteh.older 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, wlthout prepayment pena Ity or premium, on any installment due date upon thirty (30) days' prior written notice to the Holder .of this Note. The N.ote shall be prepaid concurrently with and to the extent of any prepayment on any Part i cipant Note (as defi ned in the Project Agreement referenced be low) . 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 8