res_7779 - Laserfiche WebLink

Home

any such prior holder during said period plus an amount equal to any interest, penalties, additions to tax and additional amounts as referred to in Subchapter A of Chapter 67 and Subchapters A and B of Chapter 68 of the Internal Revenue Code (such interest, penalties, additions to tax and additional amounts being referred to as "Addi:tions to Tax") which are payable to the United States as a consequence of the failure to include the interest on the Note in federal gross income. The obligation of the City to pay such amounts shall survive the payment in full of the principal amount of this Note. (ii) Upon a Determination of Taxability, the Lender may declare the entire Principal Balance of this Note together with accrued interest thereon at such retroactively increased rate to be immediately due and payable, together with the prepayment premium, if any, specified in paragraph 7 hereof. (iii) The terms "Determination of Taxability," "Date of Taxability" and "Notice of Taxability" as used herein shall have the meanings ascribed to such terms in Section 4.07 of the Loan Agreement, dated the date hereof (the "Loan Agreement"), between the City and Oakcrest Development Company (the "Borrower"). (iv) The Lender shall give notice, as soon as practicable, but in any event before the right to appeal such Notice of Taxability has expired, to the Borrower, the City and any prior holder of its receipt of any Notice of Taxability and' permit the Borrower to contest litigate or appeal the same at its sole expense. In the event any such contest, litigation or appeal is undertaken, the increased interest provided in paragraph l(c)(i) shall, nevertheless, be payable to the Lender and, to the extent applicable, any prior holder and shall be held by the Lender and any such prior holder in escrow pending final disposition of such contest, litigation or appeal, provided that the Borrower shall indemnify and hold harmless the Lender and each such prior holder from any and all penalties, interest or other liabilities which they may incur on account of such contest, litigation or appeal. 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 service charge, 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 elapsed. 9