Common use of Interest and Prepayment Clause in Contracts

Interest and Prepayment. In accordance with the Loan Agreement and compliance by Borrower with the terms, conditions and procedures thereof, interest will accrue on the unpaid balance of the Principal Sum until paid at a variable rate of interest per annum, which shall be equal to the LIBO Rate (as defined in the Loan Agreement) plus one hundred seventy-five (175) basis points (100 basis points being equal to one percent (1%) per annum) (the “Applicable Interest Rate”). Upon the occurrence of an Event of Default, whether by acceleration or otherwise, interest will accrue on the unpaid balance of the Principal Sum and unpaid interest, if any, until paid at a variable rate of interest per annum, which shall change in the manner set forth below, equal to four percent (4%) over the Applicable Interest Rate (as also defined in the Loan Agreement, the “Default Rate”). All interest will be calculated on the basis of a 360 day year for the actual number of days the Principal Sum or any part thereof remains unpaid. There shall be no premium for prepayment. Interest on the Principal Sum shall be payable monthly in arrears commencing on the fifteenth (15th) day of October, 2012 and on the fifteenth (15th) day of each succeeding calendar month. Notwithstanding the foregoing, if the due date of any payment under this Note shall be a day that is not a Banking Day (as defined in the Loan Agreement), the due date will be extended to the next succeeding Banking Day. The entire Principal Sum shall be due and payable on September 23, 2013, or upon demand, whichever will first occur, and accrued interest thereon shall be due and payable in accordance with the provisions hereof and the Loan Agreement and thereafter at maturity, whether by demand, acceleration or otherwise together with any and all other sums due hereunder. All sums due hereunder shall be paid to Lender at its office address as set forth herein and shall be paid in lawful money of the United States of America and in immediately available funds, and shall be applied by Lender: (a) first to the payment of any sums other than principal or interest, (b) then to the payment of interest, and (c) then to the payment of principal. All sums due hereunder shall be without relief from valuation and appraisement laws.