Common use of Interest and Amortization Clause in Contracts

Interest and Amortization. (i) Interest at the Band Interest Rate shall accrue from date of advance until the Commencement Date; thereafter the Lakes Development Loan shall be payable as follows: monthly in arrears, beginning on the 15th day of the month after the month in which the Commencement Date occurs, in equal monthly payments of principal and interest for (a), if the term of the Lakes Development Loan is seven (7) years, the successive 84 months of the term; or (b) if the term of the Lakes Development Loan is five (5) years, in the successive 60 months of the term. (ii) If the Bank Closing does not occur, interest shall accrue on amounts advanced under the Lakes Development Loan at Wall Street Journal prime plus 1%, not to exceed 10%.