RATE.
THE BORROWER
HEREBY PROMISES TO PAY INTEREST ON THE UNPAID PRINCIPAL AMOUNT OF EACH LOAN
COMMENCING ON THE DATE OF DISBURSEMENT OF SUCH LOAN UNTIL THE LOAN IS PAID IN
FULL AT THE APPLICABLE INTEREST RATE; PROVIDED, HOWEVER, THAT UPON THE
OCCURRENCE OF AN EVENT OF DEFAULT AND BORROWER'S FAILURE TO CURE SUCH EVENT OF
DEFAULT PRIOR TO THE EXPIRATION OF ANY APPLICABLE CURE PERIOD, THE UNPAID
PRINCIPAL AMOUNT OF THE LOAN SHALL BEAR INTEREST THEREAFTER AT A RATE PER ANNUM
EQUAL TO THE DEFAULT RATE.
SECTION 4.2.
COMPUTATION OF INTEREST.
INTEREST ON THE LOAN SHALL BE COMPUTED FOR THE ACTUAL NUMBER OF DAYS ELAPSED ON
THE BASIS OF A 360 DAY YEAR AND ACTUAL DAYS ELAPSED.
SUBJECT TO ANY MAXIMUM OR
MINIMUM INTEREST RATE LIMITATIONS SPECIFIED HEREIN OR BY APPLICABLE LAWS, THE
APPLICABLE INTEREST RATE SHALL CHANGE AUTOMATICALLY WITHOUT NOTICE TO THE
BORROWER ON THE FIRST DAY OF EACH LIBOR RATE INTEREST PERIOD BUT NOT MORE OFTEN
THAN EACH MONTH TO REFLECT ANY CHANGE IN THE LIBOR RATE.
SHOULD ANY INTEREST OR
OTHER CHARGES PAID OR PAYABLE BY THE BORROWER OR ANY PARTY LIABLE FOR THE
PAYMENT OF A LOAN IN CONNECTION WITH THIS AGREEMENT OR ANY RELATED DOCUMENT
RESULT IN THE COMPUTATION OR EARNING OF INTEREST IN EXCESS OF THE MAXIMUM
ALLOWED BY APPLICABLE LAW, THEN ANY AND ALL SUCH EXCESS SHALL BE AND THE SAME IS
HEREBY WAIVED BY THE BANK, AND ANY AND ALL SUCH EXCESS PAID SHALL BE
AUTOMATICALLY CREDITED AGAINST AND IN REDUCTION OF THE OUTSTANDING PRINCIPAL
BALANCE OF THE LOAN, AND THE PORTION OF SAID EXCESS PAID WHICH EXCEEDS THE
OUTSTANDING BALANCE OF THE LOAN SHALL BE PAID BY THE BANK TO THE PERSON LEGALLY
ENTITLED THERETO.
SECTION 4.3.
SUSPENSION OF LIBOR RATE.
IN THE
EVENT THAT BANK REASONABLY DETERMINES THAT BY REASON OF (1) ANY CHANGE ARISING
AFTER THE DATE OF THIS AGREEMENT AFFECTING THE INTERBANK EUROCURRENCY MARKET OR
AFFECTING THE POSITION OF THE BANK WITH RESPECT TO SUCH MARKET, ADEQUATE AND
FAIR MEANS DO NOT EXIST FOR ASCERTAINING THE APPLICABLE INTEREST RATES BY
REFERENCE TO WHICH THE LIBOR RATE THEN BEING DETERMINED IS TO BE FIXED, (2) ANY
CHANGE ARISING AFTER THE DATE OF THIS AGREEMENT IN ANY APPLICABLE LAW OR
GOVERNMENTAL RULE, REGULATION OR ORDER (OR ANY INTERPRETATION THEREOF, INCLUDING
THE INTRODUCTION OF ANY NEW LAW OR GOVERNMENTAL RULE, REGULATION OR ORDER), OR
(3) ANY OTHER CIRCUMSTANCE AFFECTING THE BANK OR THE INTERBANK MARKET (SUCH AS,
BUT NOT LIMITED TO, OFFICIAL RESERVE REQUIREMENTS REQUIRED BY REGULATION D OF
THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM), THE LIBOR RATE PLUS THE
APPLICABLE MARGIN SHALL
13
NOT REPRESENT THE EFFECTIVE PRICING TO THE BANK OF ACCRUING INTEREST HEREUNDER
BASED UPON THE LIBOR RATE, THEN, AND IN ANY SUCH EVENT, THE ACCRUING OF INTEREST
HEREUNDER BASED UPON THE LIBOR RATE SHALL BE SUSPENDED UNTIL BANK SHALL NOTIFY
THE BORROWER THAT THE CIRCUMSTANCES CAUSING SUCH SUSPENSION NO LONGER EXIST.
IN
SUCH CASE, BEGINNING ON THE DATE OF SUCH SUSPENSION INTEREST