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<br />(c) (i) In the event that the interest on this <br />Note shall become subject to federal income taxation pursuant <br />to a Determination of Taxability (as hereinafter defined), the <br />interest rate on this Note shall be increased, retroactively <br />effective from and after the Date of Taxability (as hereinafter <br />defined) to a taxable rate equal to the ov rnment Yield (as <br />hereinafter defined), as determined on ~ , 1982 plus <br />four and one-half percent (4 1/2%) per n (the "Taxable <br />Rate"), provided, however, that in no event shall the Taxable <br />Rate for any period be less than the Tax Exempt Rate otherwise <br />in effect for the same period. The city shall Urumediately upon <br />demand pay to the Holder and to each prior Holder affected by <br />such Determination of Taxability an amount equal to the amount <br />by which the interest accrued retroactively at such increased <br />rate from the Date of Taxability to the date of payment exceeds <br />the amount of interest actually accrued and paid to the Holder <br />and any such prior Holder during said period. (Such obligation <br />of the City shall survive the paYment in full of the principal <br />amount of this Note). Commencing on the Payment Date next <br />following the date of paYment of such additional interest and <br />continuing on each PaYment Date thereafter (unless the Holder <br />shall accelerate the maturity of the Note pursuant to clause <br />(ii) of this paragraph (c)), this Note shall be payable as <br />follows: <br /> <br />(A) if amortization of the Principal Balance <br />had not theretofore commenced under <br />paragraph (b) hereof, the monthly payments <br />of interest only hereunder shall be <br />increased to reflect the accrual of <br />interest at the Taxable Rate and the <br />monthly installments of principal and <br />interest payable commencing with the <br />PaYment Date next following the Call Date <br />shall be recomputed on the basis of the <br />Taxable Rate and an assumed ten-year <br />amortization7 or <br /> <br />(B) if amortization of the Principal Balance <br />had theretofore commenced under paragraph <br />(b) hereof, the Principal Balance shall be <br />payable in equal monthly installments in <br />amounts sufficient to amortize the <br />Principal Balance over the period ending on <br />the Final Maturity Date, and accrued <br />interest at the increased Taxable Rate <br />shall be payable with each principal <br />installment. <br /> <br />19 <br />