COLLATERAL
SECURING SUCH SBA 7(A) LOAN AND, AS A RESULT, REDETERMINING THE APPROPRIATE
ADVANCE RATE FOR THE NON-GUARANTEED NOTE RECEIVABLE PORTION THEREOF.
2.2
NOTICE OF BORROWING; DISBURSEMENT OF ADVANCES.
(A)
NOTICE.
THE AMOUNT AND DATE OF EACH ADVANCE HEREUNDER SHALL BE
DESIGNATED BY BORROWER'S EXECUTION OF AND DELIVERY TO LENDER OF A BORROWING BASE
CERTIFICATE THAT INCLUDES BORROWER'S REQUEST FOR A NEW ADVANCE, BY NO LATER THAN
10:00 A.M. (CALIFORNIA TIME) ON THE PROPOSED FUNDING DATE.
(B)
DISBURSEMENT.
UPON RECEIPT OF A BORROWING BASE CERTIFICATE
PURSUANT TO SECTION 2.2(A) AND SATISFACTION OF ALL OF THE OTHER CONDITIONS
PRECEDENT SET FORTH IN ARTICLE 8, SUBJECT TO THE PROVISIONS OF, AND SATISFACTION
OF THE CONDITIONS SET FORTH IN, SECTION 2.1, LENDER SHALL, ON OR AFTER THE
CLOSING DATE, MAKE ADVANCES TO BORROWER ON A REVOLVING BASIS UP TO A MAXIMUM
AGGREGATE OUTSTANDING PRINCIPAL AMOUNT EQUAL TO THE MAXIMUM COMMITMENT.
(C)
DESIGNATED ACCOUNT.
LENDER IS AUTHORIZED TO MAKE THE REVOLVING
LOANS UNDER THIS AGREEMENT BASED UPON TELEPHONIC OR OTHER INSTRUCTIONS RECEIVED
FROM ANYONE PURPORTING TO BE AN AUTHORIZED PERSON, OR WITHOUT INSTRUCTIONS IF
PURSUANT TO SECTION 2.12.
BORROWER AGREES TO ESTABLISH AND MAINTAIN THE
DESIGNATED ACCOUNT WITH THE DESIGNATED ACCOUNT BANK FOR THE PURPOSE OF RECEIVING
THE PROCEEDS OF THE ADVANCES REQUESTED BY BORROWER AND MADE BY LENDER
HEREUNDER.
UNLESS OTHERWISE AGREED BY LENDER AND BORROWER, ANY REVOLVING LOAN
REQUESTED BY BORROWER AND MADE BY LENDER HEREUNDER SHALL BE MADE TO THE
DESIGNATED ACCOUNT.
2.3
INTEREST RATE.
(A)
EXCEPT AS PROVIDED TO THE CONTRARY IN SECTION 2.20(A), BORROWER
SHALL PAY INTEREST TO LENDER (I) MONTHLY IN ARREARS COMMENCING ON THE FIRST
BUSINESS DAY OF THE MONTH NEXT SUCCEEDING THE MONTH IN WHICH THE CLOSING DATE
FALLS, AND ON THE FIRST BUSINESS DAY OF EACH
19
SUBSEQUENT CALENDAR MONTH, (II) ON THE TERMINATION DATE, AND (III) IF ANY
INTEREST ACCRUES OR REMAINS PAYABLE AFTER THE TERMINATION DATE, OR DURING THE
CONTINUANCE OF AN EVENT OF DEFAULT, UPON DEMAND BY LENDER.
(B)
INTEREST SHALL ACCRUE ON THE REVOLVING LOANS AT A RATE EQUAL TO
(I) IN THE CASE OF A LIBOR RATE LOAN, AT A PER ANNUM RATE EQUAL TO THE LIBOR
RATE FOR THE APPLICABLE INTEREST PERIOD PLUS THE LIBOR RATE MARGIN; (II) IN THE
CASE OF A BASE RATE LOAN, AT A FLOATING PER ANNUM RATE EQUAL TO THE BASE RATE;
AND (III) OTHERWISE, AT A FLOATING PER ANNUM RATE EQUAL TO THE BASE RATE.
(C)
ALL COMPUTATIONS OF INTEREST SHALL BE MADE BY LENDER ON THE BASIS
OF A 360 DAY YEAR, IN EACH CASE FOR THE ACTUAL NUMBER OF DAYS OCCURRING IN THE
PERIOD FOR WHICH SUCH INTEREST IS PAYABLE.
IN THE EVENT THE BASE RATE IS
CHANGED FROM TIME TO TIME HEREAFTER, THE RATES OF INTEREST HEREUNDER BASED UPON
THE BASE RATE AUTOMATICALLY AND IMMEDIATELY SHALL BE INCREASED OR DECREASED BY
AN AMOUNT EQUAL TO SUCH CHANGE IN THE BASE RATE.
EACH DETERMINATION BY LENDER
OF AN INTEREST RATE HEREUNDER SHALL BE CONCLUSIVE AND BINDING FOR ALL PURPOSES,
ABSENT