1981-140 CRA - Laserfiche WebLink

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. . . . . . sha 11 give Agency not i ce thereof between December I, 1986 and December 20, 1986. Notwithstanding the foregoing, if interest on this Note becomes subject to federal income taxation pursuant to an Official determination (as hereinafter defi ned): (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 re9istered 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 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 N.ote 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 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 pa i din fu 11, such excess sha 11 be refunded to Agency. Without in any way limiting the survival of any other provision of this N.ote, 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. The term "Official Determination" shall mean (and for all purposes of thi 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 statut.ory notice 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 opini.on of nati.onally-recognized bond counsel acceptable to Agency and Bank, is to make interest payable on this Note includable in the gross 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 connection 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 Note 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