11-10-1982 Council Agenda - Laserfiche WebLink

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(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 Forster - Matson Properties, a Minnesota general partnership (the "Borrower ") a copy of the notice of the "Determination of Taxability ", the interest rate shall be immediately and automatically increased to an annual rate of % over the yield of % United States Treasury bills maturing on the date closest to the Final Maturity Date, which rates shall be adjusted each month according to the yield quoted on the first business day of each month by the Chase Manhattan Bank, N.A. (or if such bank ceases to exist, or ceases to quote such yields, by such other bank as the Lender shall choose), and each monthly installment thereafter payable shall be accordingly adjusted and shall be equal to the amount necessary to amortize the remaining Principal Balance on the basis of a 20 year Amortization Schedule from the date hereof with the final Principal Balance due and payable on 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 Section 4.07 of 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. (d) Unless a Determination of Taxability shall occur, in which event the interest rate shall be governed by paragraph 1(c) hereof, the rate of interest on this Note shall be adjusted on 1, 1987, 1, 1992 and , 1, 1997 and thereafter shall be equal to the greater of: (i) 14 %, (ii) 2 1/2% over the "Bond Buyer Index" in effect on the date of each such adjustment and (iii) 2 1/2% less than the Prime Rate charged by the Lender as of the date of each such adjustment. The monthly payments of principal and interest due hereunder shall be accordingly adjusted and shall thereafter be equal to an amount necessary to fully amortize the Principal Balance in 240 equal monthly installments by the Final Maturity Date. For purposes hereof "Bond Buyer Index" shall mean the "Bond Buyer Index of Municipal Yield Averages (20 Bond Index)" published weekly in the Daily Bond Buyer, or a successor publication approved by the Lender. "Prime Rate" shall mean the rate of interest publicly announced by the Lender from time to time as its prime rate. 48