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02-28-2018 Council Packet
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02-28-2018 Council Packet
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10553599v2 <br /> <br />2 <br /> <br />2. The Current Note is hereby amended by deleting the seventh paragraph of Section <br />1 in its entirety and replacing it with the following: <br />The interest rate on this Note shall be subject to further adjustment by the Lender <br />if there is a change in the Maximum Federal Corporate Tax Rate as a result of a change in <br />law. The Lender shall provide the Borrower with 30 days' notice of any such adjustment <br />and resulting interest rate. For purposes of this paragraph, "Maximum Federal Corporate <br />Tax Rate" means the maximum rate of income taxation imposed on corporations pursuant <br />to Section 11(b) of the Internal Revenue Code of 1986, as amended (the "Code"), as in <br />effect from time to time, or, if as a result of a change in the Code, the rate of income <br />taxation imposed on corporations generally shall not be applicable to the Lender, the <br />maximum statutory rate of federal income taxation which would apply to the Lender. The <br />adjustment in interest rate will be equal to (a) the interest rate before the adjustment times <br />(1–new Maximum Federal Corporate Tax Rate), divided by (b) .79. <br />3. The Current Note is hereby amended by deleting paragraph 8 in its entirety and <br />replacing it with the following: <br />Upon a Determination of Taxability, as defined in the Loan Agreement, this Note <br />shall convert to a taxable obligation and the interest rate for interest accruing from the <br />Date of Taxability, as defined in the Loan Agreement, shall be adjusted to an interest rate <br />per annum equal to the then current interest rate payable hereunder, divided by 0.79 (as <br />may be adjusted pursuant to the sixth paragraph of Section 1) (the "Taxable Rate"). Any <br />interest accruing from the Date of Taxability which is retroactively due as a result of the <br />interest rate adjustment shall be payable on the 1st day of the following month along with <br />regularly scheduled principal payment and interest accruing from the previous payment <br />date at the Taxable Rate. <br />4. All other terms and provisions of the Current Note remain in full force and effect. <br /> <br /> <br /> <br /> <br /> <br /> <br />[Signature pages follow]
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