11-12-1980 Council Agenda - Laserfiche WebLink

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tenths percent (15.7%) per annum; and each monthly installment thereafter payable shall be accordingly adjusted and shall be equal to the amount necessary to amortize the remaining Principal Balance by the Final Maturity Date with interest at said increased rate; and in addition, the City shall immediately pay to the Permanent Lender, the aggregate difference between (a) the monthly payments actually made to the Permanent Lender from the Date of Taxability to the date of such payment and (b) the payments which would have been made during such period if the increased rate had been in effect. (f) Unless a "Determination of Taxability shall occur, in which event the interest rate shall be governed by paragraph 1(e) hereof, the rate of interest on this Note shall be adjusted as of the first day of the month following the seventh anniversary of the Purchase Date and every fifth anniversary thereafter (the "Adjustment Date ") and shall be equal to an amount to be determined in the manner hereinafter described. For purposes of this paragraph 1(f), the "Initial Rate" shall be 10 3/4%, the "Base Rate" shall be the lesser of the Closing Yield on U.S. Treasury Bonds of 10 3/8% maturing November, 2009 (the "Bonds ") on and the Closing Yield on the Bonds on the Purchase Date, and the "Change Rate" shall be the average of the Closing Yield on the Bonds for the first trading day of each of the three months immediately preceding the Adjustment Date. On the Adjustment Date, if the Base Rate exceeds the Change Rate, the difference between the two rates shall be subtracted from the Initial Rate to determine the rate of interest on this Note, and if the Change Rate exceeds the Base Rate, the difference shall be added to the Initial Rate to determine the rate of interest on this Note; provided, however, that the rate of interest determined pursuant to this paragraph 1(f) shall never be more than two percent (2 %) higher or lower than the Initial Rate. 2. In any event, the payments hereunder shall be sufficient to pay all principal and interest due, as such principal and interest becomes due, and to pay any premium or penalty, at maturity, upon redemption, or otherwise. Interest shall be computed on the basis of a 360 day year, but charged for the actual number of days principal is unpaid.