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CCRes_84-37
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CCRes_84-37
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more than 135$ of the yield to maturity stated in the "25 Rev. <br />Bonds Index" appearing in the Credit Markets (or successor <br />,,~ publication) for the last week immediately prior to the First <br />Anniversary Date and (ii) will in the written opinion of the <br />Rate Setter (hereinafter defined) delivered to the City and <br />Lender on the First Anniversary Date, allow the Note to be <br />marketed on the First Anniversary Date at par. Rate Setter <br />shall mean Miller & Schroeder Municipals, Inc., its successors <br />and assigns and Bullseye Golf Centers, Inc., its successors and <br />assigns. <br />(c)(i) In the event that the interest on this <br />Note shall become subject to federal income taxation pursuant <br />to a Determination of Taxability (as hereinafter defined), the <br />interest rate on this Note shall be increased, retroactively <br />effective from and after the Date of Taxability (as hereinafter <br />defined) to the fluctuating rate of 4$ over the publicly <br />announced prime rate of the Lender. The City shall immediately <br />upon demand pay to the Lender and to each prior holder affected <br />by such Determination of Taxability an amount equal to the <br />amount by which the interest accrued retroactively at such <br />increased rate from the Date of Taxability to the date of <br />payment exceeds the amount of interest actually accrued and <br />paid to the Lender and any such prior holder during said period <br />plus an amount equal to any interest, penalties, additions to <br />tax and additional amounts as referred to in Subchapter A of <br />Chapter 67 and Subchapters A and B of Chapter 68 of the <br />Internal Revenue Code (such interest, penalties, additions to <br />tax and additional amounts being referred to as "Additions to <br />Tax") which are payable to the United States as a consequence <br />of the failure to include the interest on the Note in federal <br />gross income. (Such obligation of the City shall survive the <br />payment in full of the principal amount of this Note.) <br />(ii) Upon a Determination of Taxability, the <br />Lender may declare the entire Principal Balance of this Note <br />together with accrued interest thereon at such retroactively <br />increased rate to be immediately due and payable, together with <br />the prepayment premium, if any, specified in paragraph 8 <br />hereof. <br />(iii) The terms "Determination of Taxabilityt" <br />"Date of Taxability" and "Notice of Taxability" as used herein <br />shall have the meanings ascribed to such terms in Section 4.07 <br />of the Loan Agreement, dated the date hereof (the "Loan <br />Agreement"), between the City and Bullseye Golf Centers, Inc. <br />(the "Borrower"). <br />.s <br />
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