Agenda - 06-24-1986 - Laserfiche WebLink

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All such payments shall be made in funds which shall be immediately available on the due date of such payments and in lawful money of the United States of America at the office of NCNB National Bank of North Carolina, Chapel Hill , North Carolina or at such other place as directed by the Holder hereof in accor- dance with the Bond Purchase Agreement (as defined in the Agree- ment hereinafter mentioned) . If at any time there is a Determination of Taxability (as defined in the Agreement noted below) , the interest rate payable hereon from the Date of Taxability (as defined in the Agreement hereinafter mentioned) shall be a rate per annum equal to the Prime Rate plus 1%, or the maximum rate allowed by law, whichever is lower ( the "Alternative Rate of Interest" ) , adjusted upon each adjustment in the Prime Rate. If the maximum incremental percentage rate of federal and North Carolina income tax ( the "NCNB Tax Rate" ) applicable to the taxable income of the holder of the Bond (as defined in the Agreement noted below) decreases after the date of the Certificate of Disbursement, the applicable percentage which is applied to the Prime Rate in determining the applicable rate of interest hereon ( the "Tax-Exempt Factor" ) immediately prior to such change shall be adjusted, effective on the date of such change, to equal the product of (1) the Tax-Exempt Factor as of the date hereof multiplied by ( 2) a fraction, (a) the numerator of which is 100% minus the NCNB Tax Rate as so adjusted and (b) the denominator of which is 100% minus the NCNB Tax Rate in effect on the Date of the Certificate of Disbursement . If the 20% percentage specified by Section 291(a) ( 3) of the Internal Revenue Code of 1954, as amended, or any successor pro- vision therefor , is increased or decreased after the date of the Certificate of Disbursement, the tax-exempt rate hereon immediate- ly prior to such change shall be increased or decreased effective on the date of such change by 4.1 basis points for each one per- cent increase or decrease, respectively, in such 20% percentage. This promissory note is the "Note" referred to in the Loan Agreement, dated as of July 1, 1986 ( the "Agreement" ) , between the Company and the Authority. The Company may at its option, and may under certain circumstances be required to, prepay together with accrued interest, all or any part of the unpaid principal of this Note, as provided in the Agreement. In the event of a prepayment in part, amounts to be applied to the prepayment of installments of principal on the Note shall A-2