BE A
EURODOLLAR RATE LOAN.
BORROWER MAY NOT ELECT THAT THE ADVANCE LOANS BE A PRIME
RATE LOAN; ALL OF THE ADVANCE LOANS SHALL BE A PRIME RATE LOAN ONLY IF THE
PROVISIONS OF SECTION 2.7(B) APPLY.
(B)
SUBJECT TO THE PROVISIONS OF SECTION 2.9, IF
AT ANY TIME LENDER HAS NOTIFIED BORROWER THAT THE PROVISIONS OF SECTIONS 3.2 OR
3.3 APPLY, ALL OF THE ADVANCE LOANS SHALL BECOME A PRIME RATE LOAN EFFECTIVE ON
THE DATE ON WHICH LENDER DETERMINES THAT THE PROVISIONS OF SECTIONS 3.2 OR 3.3
APPLY AND THE ADVANCE LOANS SHALL NOT BE A EURODOLLAR RATE LOAN UNTIL LENDER
NOTIFIES BORROWER THAT THE PROVISIONS OF SECTIONS 3.2 AND 3.3 NO LONGER APPLY.
(C)
INTEREST ON THE ADVANCE LOANS SHALL BE DUE
AND PAYABLE IN ARREARS ON EACH INTEREST PAYMENT DATE APPLICABLE THERETO AND AT
SUCH OTHER TIMES AS MAY BE SPECIFIED HEREIN.
INTEREST HEREUNDER SHALL BE DUE
AND PAYABLE IN ACCORDANCE WITH THE TERMS HEREOF BEFORE AND AFTER JUDGMENT, AND
BEFORE AND AFTER THE COMMENCEMENT OF ANY PROCEEDING UNDER ANY DEBTOR RELIEF LAW.
2.8
COMPUTATIONS.
SUBJECT TO SECTION 9.11,
INTEREST ON THE ADVANCE LOANS AND ANY OTHER AMOUNTS DUE HEREUNDER SHALL BE
CALCULATED ON THE BASIS OF ACTUAL DAYS ELAPSED OVER A YEAR OF 360 DAYS.
NOTHING
HEREIN SHALL BE DEEMED TO OBLIGATE LENDER TO OBTAIN THE FUNDS FOR ANY ADVANCE
LOAN IN ANY PARTICULAR PLACE OR MANNER OR TO CONSTITUTE A REPRESENTATION BY
LENDER THAT IT HAS OBTAINED OR WILL OBTAIN THE FUNDS FOR ANY ADVANCE LOAN IN ANY
PARTICULAR PLACE OR MANNER.
2.9
INTEREST AFTER AN EVENT OF DEFAULT.
(A) IF
AN EVENT OF DEFAULT EXISTS (OTHER THAN A DEFAULT SPECIFIED IN SECTION 8.1(E) OR
(F)), AT THE OPTION OF LENDER, AND (B) IF AN EVENT OF DEFAULT SPECIFIED IN
SECTION 8.1(E) OR (F) EXISTS, AUTOMATICALLY AND WITHOUT ANY ACTION BY LENDER,
THE OBLIGATIONS SHALL BEAR INTEREST AT A RATE PER ANNUM EQUAL TO THE LESSER OF
(I) THE DEFAULT RATE AND (II) THE HIGHEST LAWFUL RATE.
SUCH INTEREST SHALL BE
PAYABLE ON THE EARLIER OF DEMAND AND THE ADVANCE LOAN MATURITY DATE, AND SHALL
ACCRUE UNTIL THE EARLIER OF (A) WAIVER OR CURE (TO THE SATISFACTION OF LENDER)
OF THE APPLICABLE EVENT OF DEFAULT, (B) AGREEMENT BY LENDER TO RESCIND THE
CHARGING OF INTEREST AT THE DEFAULT RATE, OR (C) PAYMENT IN FULL OF THE
OBLIGATIONS.
LENDER SHALL NOT BE REQUIRED TO ACCELERATE THE MATURITY OF THE
ADVANCE LOANS, TO EXERCISE ANY OTHER RIGHTS OR REMEDIES UNDER THE LOAN
DOCUMENTS, OR TO GIVE NOTICE TO BORROWER OF THE DECISION TO CHARGE INTEREST AT
THE DEFAULT RATE.
LENDER WILL UNDERTAKE TO NOTIFY BORROWER, AFTER THE EFFECTIVE
DATE, OF
19
THE DECISION TO CHARGE INTEREST AT THE DEFAULT RATE.
THE DETERMINATION OF THE
DEFAULT RATE BY LENDER SHALL BE PRIMA FACIE EVIDENCE AS TO THE DEFAULT RATE.
2.10
LATE CHARGE.
IF A PAYMENT IS MADE 10 DAYS OR
MORE LATE, BORROWER WILL BE CHARGED (SUBJECT TO SECTION 9.11), IN ADDITION TO
INTEREST, A DELINQUENCY