SUFFICIENT TO COMPENSATE AND INDEMNIFY THE BANK FOR SUCH INCREASED
COST OR REDUCED AMOUNT.
2.3
LOAN ACCOUNT.
THE BANK SHALL MAINTAIN A LOAN ACCOUNT (THE "LOAN
ACCOUNT") ON ITS BOOKS IN WHICH SHALL BE RECORDED (I) ALL DISBURSEMENTS AND
ADVANCES MADE BY THE BANK TO BORROWER PURSUANT TO THIS AGREEMENT, (II) ALL
PAYMENTS MADE BY BORROWER ON ALL SUCH LOANS AND ADVANCES AND (III) ALL OTHER
APPROPRIATE DEBITS AND CREDITS AS PROVIDED IN THIS AGREEMENT, INCLUDING, WITHOUT
LIMITATION, ALL INTEREST, FEES, CHARGES AND EXPENSES.
ALL ENTRIES IN THE LOAN
ACCOUNT SHALL BE MADE IN ACCORDANCE WITH THE BANK'S CUSTOMARY ACCOUNTING
PRACTICES AS IN EFFECT FROM TIME TO TIME.
ALL AMOUNTS RECORDED IN THE LOAN
ACCOUNT SHALL BE, ABSENT MANIFEST ERROR, PRIMA FACIE EVIDENCE OF (I) THE
PRINCIPAL AMOUNT OF THE LOANS ADVANCED HEREUNDER AND THE AMOUNT OF ALL LETTER OF
CREDIT OBLIGATIONS, (II) ANY ACCRUED AND UNPAID INTEREST OWING ON THE LOANS, AND
(III) ALL AMOUNTS REPAID ON THE LOANS OR THE LETTER OF CREDIT OBLIGATIONS;
PROVIDED, HOWEVER, THE FAILURE TO RECORD ANY SUCH AMOUNT OR ANY ERROR IN
RECORDING SUCH AMOUNTS SHALL NOT LIMIT OR OTHERWISE AFFECT THE OBLIGATIONS OF
THE BORROWER UNDER THIS AGREEMENT TO REPAY THE PRINCIPAL AMOUNT OF THE LOANS,
TOGETHER WITH ALL INTEREST ACCRUING THEREON.
THE BORROWER HEREBY AUTHORIZES AND
DIRECTS THE BANK, AT THE BANK'S OPTION, TO (A) DEBIT THE AMOUNT OF THE THEN DUE
OBLIGATIONS TO ANY ORDINARY DEPOSIT ACCOUNT OF
BORROWER, OR (B) MAKE A
REVOLVING LOAN HEREUNDER TO PAY THE AMOUNT OF THE OBLIGATIONS, HOWEVER, THE BANK
MAY, IN ITS SOLE AND ABSOLUTE DISCRETION, ELECT TO BILL THE BORROWER THE AMOUNT
OF ANY THEN DUE OBLIGATIONS IN WHICH CASE THE AMOUNT SHALL BE IMMEDIATELY DUE
AND PAYABLE WITH INTEREST THEREON AS PROVIDED HEREIN.
NOT LESS THAN TEN
(10) DAYS AFTER THE LAST DAY OF EACH MONTH, THE BANK SHALL RENDER TO THE
BORROWER A STATEMENT SETTING FORTH THE BALANCE OF THE LOAN ACCOUNT, INCLUDING
PRINCIPAL, INTEREST, EXPENSES AND FEES.
2.4
DISCRETIONARY DISBURSEMENTS.
THE BANK, IN ITS SOLE AND ABSOLUTE
DISCRETION, MAY IMMEDIATELY UPON NOTICE TO THE BORROWER, DISBURSE ANY OR ALL
PROCEEDS OF THE LOANS MADE OR AVAILABLE TO THE BORROWER PURSUANT TO THIS
AGREEMENT TO PAY ANY FEES, COSTS, EXPENSES OR OTHER AMOUNTS REQUIRED TO BE PAID
BY THE BORROWER HEREUNDER AND NOT SO PAID.
ALL MONIES SO DISBURSED SHALL BE A
PART OF THE OBLIGATIONS, PAYABLE BY THE BORROWERS ON DEMAND FROM THE BANK.
2.5
NOTES.
THE REVOLVING LOANS AND THE LETTER OF CREDIT OBLIGATIONS
MAY BE, AT THE BANK'S SOLE OPTION, EVIDENCED BY THE REVOLVING NOTES.
2.6
REVOLVING LOAN PRINCIPAL PAYMENTS.
(A)
ALL REVOLVING LOANS HEREUNDER SHALL BE REPAID BY THE BORROWER ON
THE REVOLVING LOAN TERMINATION DATE.
(B)
IN THE EVENT THE REVOLVING LOAN EXPOSURE EXCEEDS THE REVOLVING
LOAN COMMITMENT, THE BORROWER SHALL, WITHOUT NOTICE OR DEMAND OF ANY KIND,
IMMEDIATELY MAKE SUCH REPAYMENTS OF THE REVOLVING LOANS OR TAKE SUCH OTHER
ACTIONS AS ARE SATISFACTORY TO THE BANK AS SHALL BE NECESSARY TO ELIMINATE SUCH
EXCESS.