HAVE OCCURRED AND BE CONTINUING, THE OUTSTANDING
PRINCIPAL BALANCE OF THE LOAN AND, TO THE EXTENT PERMITTED BY LAW, ALL ACCRUED
AND UNPAID INTEREST IN RESPECT OF THE LOAN AND ANY OTHER AMOUNTS DUE PURSUANT TO
THE LOAN DOCUMENTS, 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
USURY SAVINGS. THIS AGREEMENT, THE NOTE AND THE OTHER
LOAN DOCUMENTS ARE SUBJECT TO THE EXPRESS CONDITION THAT AT NO TIME SHALL
BORROWER BE OBLIGATED OR 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
24
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 OF THE LOAN UNTIL PAYMENT IN FULL SO THAT THE RATE OR AMOUNT OF INTEREST ON
ACCOUNT OF THE LOAN DOES NOT EXCEED THE MAXIMUM LEGAL RATE OF INTEREST FROM TIME
TO TIME IN EFFECT AND APPLICABLE TO THE LOAN FOR SO LONG AS THE LOAN IS
OUTSTANDING.
SECTION 2.3
LOAN PAYMENT.
2.3.1
MONTHLY DEBT SERVICE PAYMENTS.
BORROWER SHALL PAY TO
LENDER (A) ON THE CLOSING DATE, AN AMOUNT EQUAL TO INTEREST ONLY ON THE
OUTSTANDING PRINCIPAL BALANCE OF THE LOAN FROM THE CLOSING DATE UP TO AND
INCLUDING OCTOBER 31, 2006 AND (B) ON EACH PAYMENT DATE THEREAFTER UP TO AND
INCLUDING THE MATURITY DATE, BORROWER SHALL MAKE A PAYMENT TO LENDER OF
PRINCIPAL AND/OR INTEREST, AS APPLICABLE, IN AN AMOUNT EQUAL TO THE MONTHLY DEBT
SERVICE PAYMENT AMOUNT, WHICH PAYMENTS SHALL BE APPLIED FIRST TO ACCRUED AND
UNPAID INTEREST AND THE BALANCE TO PRINCIPAL.
2.3.2
PAYMENTS GENERALLY.
THE FIRST (1ST) INTEREST ACCRUAL
PERIOD HEREUNDER SHALL COMMENCE ON AND INCLUDE THE CLOSING DATE AND SHALL END ON
AND INCLUDE OCTOBER 31, 2006.
EACH INTEREST ACCRUAL PERIOD THEREAFTER SHALL
COMMENCE ON THE FIRST (1ST) DAY OF EACH CALENDAR MONTH DURING THE TERM OF THIS
AGREEMENT AND SHALL END ON AND INCLUDE THE FINAL CALENDAR DATE OF SUCH CALENDAR
MONTH.
FOR PURPOSES OF MAKING PAYMENTS HEREUNDER, BUT NOT FOR PURPOSES OF
CALCULATING INTEREST ACCRUAL PERIODS, IF THE DAY ON WHICH SUCH PAYMENT IS DUE IS
NOT