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(b) Commencing on the Purchase Date and on the fi~st day of each calendar month thereafter, the Principal Balance shall be amortized in equal consecutive monthly installments of principal and interest the amount of each to be calculated on an assumed 30 year amortization with a final installment of all unpaid principal and interest on August 15, 2U15 (the "Final Maturity Date") which shall be applied first to accrued interest and thereafter to reduction of the Principal Balance. From and after the Purchase Date, interest on the Principal Balance shall accrue at an annual rate which (i) is not less than 115% nor more than 140% of the yield to maturity stated in the "25 Rev. Bonds Index" appearing in the Credit Markets (or successor publication) for the last week immediately prior to the Purchase Date and (ii) will in the written opinion of the Rate Setter (hereinafter defined) delivered to the City and Lender on the Purchase Date, allow the Note to be marketed on the Purchase Date at par. Rate Setter shall mean Miller & Schroeder Municipals, Inc., its successors and assigns and Oakcrest Development Company, its successors and assigns. (c) The Lender shall have the option to require the Borrower to cause the Note to be purchased from the Lender, without recourse or warranty of any kind, in immediately avail- able funds on August 1, 1988 (the "Purchase Date"). This option shall be deemed to have been exercised and the Note shall be purchased on the Purchase Date, unless prior thereto the Lender has notified the Borrower in writing that it has elected not to exercise this option. The Note shall be purchased for a price equal to the Principal Balance and the interest accrued thereon plus costs of transfer thereof to the Borrower (or its assignee) including reasonable legal fees and expenses (collectively the "Purchase Price"). (d)(i) In the event that the interest on this Note shall become subject to federal income taxation pursuant to a Determination of Taxability (as hereinafter defined), the interest rate on this Note shall be increased, retroactively effective from and after the Date of Taxability (as hereinafter defined) to the fluctuating rate of three percent (3.00%) over the base rate of the Lender as established by the Lender from time to time. The City shall immediately upon demand pay to the Lender and to each prior holder affected by such Determination of Taxability an amount equal to the amount by which the interest accrued retroactively at such increased rate from the Date of Taxability to the date of payment exceeds the amount of interest actually accrued and paid to the Lender and 8