11-25-1981 Council Agenda - Laserfiche WebLink

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RLH 10/19/81 paid (the "Final Maturity Date "). Payments shall be applied first to interest due on the Principal Balance and thereafter to reduction of the Principal Balance. (c) If the interest on this Note should become subject to federal income taxation pursuant to a "Determination of Taxability" as that term is defined in Section 4.07 of the Loan Agreement hereinafter referred to, and the Lender delivers to the Borrower a copy of the notice of the "Determination of Taxability ", the interest rate shall be immediately increased to twenty percent (20 %) 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 Lender shall be entitled to receive upon demand an amount equal to the aggregate difference between (i) the monthly payments theretofore made to the Lender on this Note between the "Date of Taxability ", as that term is defined in the Loan Agreement, and the date of receipt by the Borrower of notice of such' "Determination of Taxability ", and (ii) the monthly payments which would have been made during such period if the increased rate had been in effect throughout such period; all as provided in Section 4.07 of the Loan Agreement. 2. In any event, the payments hereunder shall be sufficient to pay all principal and interest due, as such principal and interest becomes due, 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. 3. If the Lender should not receive on the first day of any month all of the principal and interest then due on the Note, and if the City should continue to be in arrears through the fifteenth day of such month, then, in addition to all other sums due hereunder, the Lender shall be entitled to receive on the sixteenth day of such month a service charge equal to four percent (4.00 %) of the delinquent principal and interest. 4. Principal and interest and premium due hereunder shall be payable at,the principal office of the Lender, or at such other place as the Lender may designate in writing. 5. This Note is issued by the City to provide funds for a Project, as defined in Section 474.02, Subdivision 1, Minnesota Statutes, consisting of the acquisition of real estate, and the construction of a maintenance shop and office