OF DEFERMENT OR ADVANCEMENT OF LOAN PROCEEDS, ACCELERATION OF
MATURITY OF THE LOAN EVIDENCED HEREBY OR OTHERWISE, SHALL THE AMOUNT PAID OR
AGREED TO BE PAID TO LENDER HEREUNDER FOR THE LOAN, USE, FORBEARANCE OR
DETENTION OF MONEY EXCEED THE MAXIMUM INTEREST RATE PERMITTED BY THE LAWS OF THE
STATE OF CALIFORNIA. IF AT ANY TIME THE PERFORMANCE OF ANY PROVISION INVOLVES A
PAYMENT EXCEEDING THE LIMIT OF THE PRICE THAT MAY BE VALIDLY CHARGED FOR THE
LOAN, USE, FORBEARANCE OR DETENTION OF MONEY UNDER APPLICABLE LAW, THEN
AUTOMATICALLY AND RETROACTIVELY, IPSO FACTO, THE OBLIGATION TO BE PERFORMED
SHALL BE REDUCED TO SUCH LIMIT, IT BEING THE SPECIFIC INTENT OF THE LENDERS AND
THE BORROWER THAT ALL PAYMENTS UNDER THIS NOTE ARE TO BE CREDITED FIRST TO
INTEREST AS PERMITTED BY LAW, BUT NOT IN EXCESS OF (i) THE AGREED RATE OF
INTEREST HEREUNDER OR (ii) THAT PERMITTED BY LAW, WHICHEVER IS THE LESSER, AND
THE BALANCE TOWARD THE REDUCTION OF PRINCIPAL.
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