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Principal Balance plus accrued interest shall, if not sooner paid, <br />be due and payable in full; orovided, however, in the event that <br />the rate of interest on this Note shall change as provided in the <br />preceding paragraph a new monthly payment of principal and <br />interest shall be calculated by reamortizin~ the principal balance <br />on the date of chan~e in the interest rate at the new interest <br />rate on a monthly level debt amortization schedule of 28 years <br />less the time from the ~aortization Date, to the date of <br />reamortization. Ail monthly payments of principal and interest <br />shall be first applied to interest then due and payable and second <br />to the reduction of the Principal Balance. <br /> <br /> If the interest on this Note should become subject to <br />federal income taxation pursuant to a "Determination of <br />Taxability" as that term is defined in Section 4.07 of the Loan <br />Agreement, upon receipt by the Borrower from the Lender of notice <br />of the "Determination of Taxability," the interest rate, to the <br />extent permitted by law, shall be immediately increased and <br />thereafter be equal to two percent (2%) per annum over the prime <br />rate (as hereinafter defined) of the First National Bank of <br />Minneapolis as the same may change from time to time, and each <br />monthly installment of principal and interest %hereafter payable <br />shall be accordingly adjusted to reflect any increased interest <br />due, provided, however, ~le amortization schedule in effect <br />without re~ard to the Determination of Taxability shall not be <br />changed and ~lus the amount of principal due on any payment date <br />shall not be increased; in addition, the Lender shall be entitled <br />to receive an amount equal to the aggregate difference between: <br />(i) the monthly payments therstofore made to the Lender on this <br />Note between ~%e date of receipt of such notice by the Lender and <br />the "Date of Taxability" (as that term is defined in the Loan <br />Agreement) and (ii) the monthly payments which would have been <br />made durin9 such period if.the adjusted rate had been in effect <br />throughout such period; all as provided in Section 4.09 of ~e <br />Loan Agreement hereinafter referred to. The prime rate shall be <br />the stated rate of interest made available by the First National <br />Bank of Minneapolis on short term unsecured loans to large <br />businesses with the highest credit standing, as that rate may <br />change from time to time. All changes in the interest rate caused <br />by fluctuations in ~e prime rate shall become effective auto- <br />matically on the first day of the month following the month in <br />which the prime rate of ~]e First National Bank of Minneapolis <br />effectively changes and shall be the Prime Rate in effect on the <br />last day of the month in which the change occurs; provided, <br />however, that this Note shall bear the same rate of interest at <br />all times after maturity as it bore at maturity. <br /> <br /> Interest shall be computed on the basis of a 360 day year, <br />but charged for the actual number of days principal is unpaid. <br /> <br /> Principal and interest due hereunder shall be payable at <br />tile principal office of ~le Lender or at such other place as the <br />Lender may designate in writing. <br /> <br />8 <br /> <br /> <br />