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
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BALANCE OF THE LOAN FROM THE CLOSING DATE UP TO AND INCLUDING NOVEMBER 30, 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.
THE NON-INTEREST ONLY PORTION OF MONTHLY DEBT SERVICE PAYMENT
AMOUNT REQUIRED HEREUNDER IS BASED UPON A THIRTY (30) YEAR AMORTIZATION
SCHEDULE.
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 DECEMBER 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 A BUSINESS DAY, THEN AMOUNTS DUE ON SUCH DATE SHALL BE DUE ON THE
IMMEDIATELY PRECEDING BUSINESS DAY AND WITH RESPECT TO PAYMENTS OF PRINCIPAL DUE
ON THE MATURITY DATE, INTEREST SHALL BE PAYABLE AT THE INTEREST RATE OR THE
DEFAULT RATE, AS THE CASE MAY BE, THROUGH AND INCLUDING THE DAY IMMEDIATELY
PRECEDING SUCH MATURITY DATE.
ALL AMOUNTS DUE UNDER THIS AGREEMENT AND THE
OTHER LOAN DOCUMENTS SHALL BE PAYABLE WITHOUT SETOFF, COUNTERCLAIM, DEFENSE OR
ANY OTHER DEDUCTION WHATSOEVER.
2.3.3
PAYMENT ON MATURITY DATE.
BORROWER SHALL PAY TO LENDER ON THE
MATURITY DATE THE OUTSTANDING PRINCIPAL BALANCE OF THE LOAN, ALL ACCRUED AND
UNPAID INTEREST AND ALL OTHER AMOUNTS DUE HEREUNDER AND UNDER THE NOTE, THE
SECURITY INSTRUMENT AND THE OTHER LOAN DOCUMENTS.
2.3.4
LATE PAYMENT CHARGE.
IF ANY PRINCIPAL, INTEREST OR ANY OTHER SUMS
DUE UNDER THE LOAN DOCUMENTS (EXCLUDING PRINCIPAL DUE ON THE MATURITY DATE) ARE
NOT PAID BY BORROWER ON OR PRIOR TO THE DATE ON WHICH IT IS DUE, BORROWER SHALL
PAY TO LENDER UPON DEMAND AN AMOUNT EQUAL TO THE LESSER OF FIVE PERCENT (5%) OF
SUCH UNPAID SUM OR