12-19-2007 Council Agenda - Laserfiche WebLink

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All interest payable shall be calculated on the basis of a 360 day year, but shall be payable on the actual date elapsed during the term of this Note. For purposes hereof, the term "Recomputed Rates" means the rate equal to the Prime Rate as announced daily in the Central Edition Wall Street Journal (the "Prime Rate ") on the Adjustment Dates minus 3% at any Adjustment. In no event shall the Recomputed Rate be less than 4% following the recomputation on each of any of the Adjustment Dates, and the Recomputed Rate cannot increase more than 3% at each of any of the Adjustment Dates. If the Central Edition of the Wall Street Journal ceases to publish the Prime Rate, then the Prime Rate shall be the rate of interest announced from time to time by Wells Fargo Bank National Association or its successors ( "Wells Fargo Bank ") as its Prime Rate, Base Rate, Reference Rate, or the equivalent of the foregoing, announced by Wells Fargo Bank from time to tome. If a range of interest rates is shown, the highest rate shall be used as the Prime Rate. 3. The principal of this Note, [$1,800,000.00], or such lesser sum as may be actually owing, together with interest on the unpaid principal balance at the Note Rate or the Recomputed Rates, as the case may be, during the term of this Note, shall be payable in successive monthly installments initially in the amount of Dollars ($ ), which installments will commence on the 20th day of January, 2008 and continue on the 20th day of each month thereafter until December 20, 2012, when the fixed monthly installments of principal and interest shall be adjusted according to the following paragraph of this Note, unless the Borrower makes prepayments of principal as provided herein, in which event the monthly installments may be adjusted earlier as provided herein. The monthly installments of principal and interest set forth above were calculated by amortizing the outstanding principal balance as of the date hereof ($1,800,000.00) over 25 years ( "Original Amortization Period ") at the Note Rate (4.65 %). If the Note Rate changes on any of the Adjustment Dates, the monthly installment will be increased or decreased by amortizing the then outstanding principal balance of the Note over the remaining term of the Original Amortization Period using the Recomputed Rate, e.g., if the principal balance on the applicable Adjustment Date is $1,600,000.00, the Recomputed Rate is 5% and the remaining term of the Original Amortization Period is 20 years, the monthly installments due on the 20th day of each month until the next Adjustment Date would be $10,056.92. If the Borrower elects to make a prepayment of principal pursuant to Section 4(a) and (c) below, the Borrower shall have the right to have the monthly installments adjusted on an applicable anniversary date (December 20) by giving the Lender fifteen (15) business days written notice prior to the applicable anniversary date. If the Borrower makes the above election, the monthly installments of principal and interest due until the next Adjustment Date shall be recalculated by amortizing the outstanding principal balance (after the prepayment) over the remaining term of the Original Amortization Period, using the Note Rate or the Recomputed Rate, as the case may be, e.g., if the principal balance of the Note is then $1,600,000.00, the Note Rate or the Recomputed Rate is 5 %, and the remaining term of the Original Amortization Period is 22 years, the monthly installments of principal and interest due until the next Adjustment Date would be $ 2110588v4 9 -10-