IF
REQUESTED BY LENDER, BORROWER SHALL PROMPTLY EXECUTE AN AMENDMENT TO THIS
AGREEMENT, THE NOTE A AND THE NOTE B TO EVIDENCE SUCH MODIFICATION. ALL OF THE
FOREGOING SHALL BE AT LENDER'S COST AND EXPENSE, AND LENDER SHALL REIMBURSE
BORROWER FOR ITS REASONABLE OUT-OF-POCKET COSTS AND EXPENSES INCURRED IN
CONNECTION THEREWITH (INCLUDING REASONABLE LEGAL FEES).
21
SECTION 2.2
INTEREST RATE.
2.2.1
INTEREST RATE.
INTEREST ON THE OUTSTANDING PRINCIPAL BALANCE OF THE
LOAN SHALL ACCRUE FROM THE DATE HEREOF UP TO BUT EXCLUDING THE MATURITY DATE AT
THE INTEREST RATE.
2.2.2
INTENTIONALLY OMITTED.
2.2.3
DEFAULT RATE.
IN THE EVENT THAT, AND FOR SO LONG AS, ANY EVENT OF
DEFAULT SHALL HAVE OCCURRED AND BE CONTINUING, THE OUTSTANDING PRINCIPAL BALANCE
OF THE LOAN AND, TO THE EXTENT PERMITTED BY LAW, OVERDUE INTEREST IN RESPECT OF
THE LOAN, SHALL ACCRUE INTEREST AT THE DEFAULT RATE, CALCULATED FROM THE DATE
SUCH PAYMENT WAS DUE WITHOUT REGARD TO ANY GRACE OR CURE PERIODS CONTAINED
HEREIN.
2.2.4
INTEREST CALCULATION.
INTEREST ON THE OUTSTANDING PRINCIPAL BALANCE
OF THE LOAN SHALL BE CALCULATED BY MULTIPLYING (A) THE ACTUAL NUMBER OF DAYS
ELAPSED IN THE PERIOD FOR WHICH THE CALCULATION IS BEING MADE BY (B) A DAILY
RATE BASED ON A THREE HUNDRED SIXTY (360) DAY YEAR (THAT IS, THE INTEREST RATE
OR THE DEFAULT RATE, AS THEN APPLICABLE, EXPRESSED AS AN ANNUAL RATE DIVIDED BY
360) BY (C) THE OUTSTANDING PRINCIPAL BALANCE. THE ACCRUAL PERIOD FOR
CALCULATING INTEREST DUE ON THE MONTHLY PAYMENT DATE OCCURRING IN NOVEMBER 2006
SHALL BE THE PERIOD FROM THE DATE HEREOF THROUGH AND INCLUDING OCTOBER 31, 2006
AND THE ACCRUAL PERIOD FOR CALCULATING INTEREST DUE ON EACH MONTHLY PAYMENT DATE
THEREAFTER SHALL BE THE PERIOD FROM THE FIRST (1ST) DAY THROUGH AND INCLUDING
THE LAST DAY OF THE CALENDAR MONTH IMMEDIATELY PRIOR TO SUCH MONTHLY PAYMENT
DATE.
2.2.5
USURY SAVINGS.
THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS ARE
SUBJECT TO THE EXPRESS CONDITION THAT AT NO TIME SHALL BORROWER BE REQUIRED TO
PAY INTEREST ON THE PRINCIPAL BALANCE OF THE LOAN AT A RATE WHICH COULD SUBJECT
LENDER TO EITHER CIVIL OR CRIMINAL LIABILITY AS A RESULT OF BEING IN EXCESS OF
THE MAXIMUM LEGAL RATE. IF BY THE TERMS OF THIS AGREEMENT OR THE OTHER LOAN
DOCUMENTS, BORROWER IS AT ANY TIME REQUIRED OR OBLIGATED TO PAY INTEREST ON THE
PRINCIPAL BALANCE DUE HEREUNDER AT A RATE IN EXCESS OF THE MAXIMUM LEGAL RATE,
THE INTEREST RATE OR THE DEFAULT RATE, AS THE CASE MAY BE, SHALL BE DEEMED TO BE
IMMEDIATELY REDUCED TO THE MAXIMUM LEGAL RATE AND ALL PREVIOUS PAYMENTS IN
EXCESS OF THE MAXIMUM LEGAL RATE SHALL BE DEEMED TO HAVE BEEN PAYMENTS IN
REDUCTION OF PRINCIPAL AND NOT ON ACCOUNT OF THE INTEREST DUE HEREUNDER. ALL
SUMS PAID OR AGREED TO BE PAID TO LENDER FOR THE USE, FORBEARANCE, OR DETENTION
OF THE SUMS DUE UNDER THE LOAN, SHALL, TO THE EXTENT PERMITTED BY APPLICABLE
LAW, BE AMORTIZED, PRORATED, ALLOCATED, AND SPREAD THROUGHOUT THE FULL STATED
TERM