Common use of Prepayment Charge Clause in Contracts

Prepayment Charge. Except as provided below, if this Note is prepaid prior to the last 3 months of the term, whether such prepayment is involuntary or upon acceleration of the principal amount of this Note by Lender following a Default, Borrower shall pay to Lender on the prepayment date (in addition to all other sums then due and owing to Lender under the Loan Documents) a prepayment charge equal to the greater of the following two amounts: (a) an amount equal to 1% of the then outstanding principal balance of the Loan; or (b) an amount equal to (i) the amount, if any, by which the sum of the present values as of the prepayment date of all unpaid principal and interest payments required under this Note, calculated by discounting such payments from their respective scheduled payment dates back to the prepayment date at a discount rate equal to the Periodic Treasury Yield (defined below) exceeds the outstanding principal balance of the Loan as of the prepayment date, multiplied by (ii) a fraction whose numerator is the amount of the prepayment and whose denominator is the outstanding principal balance of the Loan as of the prepayment date. Notwithstanding the foregoing, no prepayment charge shall apply in respect to any insurance or condemnation proceeds received by ▇▇▇▇▇▇ and applied by ▇▇▇▇▇▇ to the outstanding principal balance of the Loan. For purposes of the foregoing, "Periodic Treasury Yield" means (c) the annual yield to maturity of the actively traded non-callable United States Treasury fixed interest rate security (other than any such security which can be surrendered at the option of the holder at face value in payment of federal estate tax or which was issued at a substantial discount) that has a maturity closest to (whether before, on or after) the Maturity Date (or if two or more such securities have maturity dates equally close to the Maturity Date, the average annual yield to maturity of all such securities), as reported in The Wall Street Journal or other authoritative publication or news retrieval service on the fifth Business Day preceding the prepayment date, divided by (d) 12, if scheduled payment dates are monthly, or 4, if scheduled payment dates are quarterly.

Prepayment Charge. Except as provided below, if this Note is prepaid prior to the last 3 three (3) months of the term, whether such prepayment is involuntary or upon acceleration of the principal amount of this Note by Lender following a Default, Borrower shall pay to Lender on the prepayment date (in addition to all other sums then due and owing to Lender under the Loan Documents) a prepayment charge equal to the greater of the following two amounts: (a) an amount equal to 1% of the then outstanding principal balance of the Loan; or (b) an amount equal to (i) the amount, if any, by which the sum of the present values as of the prepayment date of all unpaid principal and interest payments required under this Note, calculated by discounting such payments from their respective scheduled payment dates back to the prepayment date at a discount rate equal to the Periodic Treasury Yield (defined below) exceeds the outstanding principal balance of the Loan as of the prepayment date, multiplied by (ii) a fraction whose numerator is the amount of the prepayment and whose denominator is the outstanding principal balance of the Loan as of the prepayment date. Notwithstanding the foregoing, no prepayment charge shall apply in respect to any insurance or condemnation proceeds received by ▇▇▇▇▇▇ Lender and applied by ▇▇▇▇▇▇ Lender to the outstanding principal balance of the Loan. For purposes of the foregoing, "Periodic Treasury Yield" means (c) the annual yield to maturity of the actively traded non-callable United States Treasury fixed interest rate security (other than any such security which can be surrendered at the option of the holder at face value in payment of federal estate tax or which was issued at a substantial discount) that has a maturity closest to (whether before, on or after) the Maturity Date (or if two or more such securities have maturity dates equally close to the Maturity Date, the average annual yield to maturity of all such securities), as reported in The Wall Street Journal or other authoritative publication or news retrieval service on the fifth Business Day preceding the prepayment date, divided by (d) 12, if scheduled payment dates are monthly, or 4, if scheduled payment dates are quarterly.have

Prepayment Charge. Except as Mortgagor hereby agrees to pay the charge ----------------- provided belowin the Note for prepayment of the Obligations, if this Note is prepaid for any reason any of said Obligations shall be paid prior to the last 3 months stated maturity date thereof, even if and notwithstanding that an Event of Default shall have occurred and Mortgagee, by reason thereof, shall have declared said Obligations due and payable, and whether or not said payment is made prior to or at any sale held under or by virtue of this Article IV. Mortgagor acknowledges that Mortgagee, in making the loan evidenced by the Note and entering into this Mortgage, is relying on Mortgagor's creditworthiness and its agreement to repay the Obligations in strict accordance with the terms set forth in the Note. Mortgagor acknowledges that Mortgagee would not make the loan without full and complete assurance by Mortgagor of its agreement to make regular payments of principal and interest under the Note and its further agreement not to prepay all or any part of the termprincipal of the Note prior to the final maturity date thereof, except on the terms expressly set forth herein and in the Note. Therefore, any prepayment of the Note, whether such occurring as a voluntary prepayment is involuntary by Mortgagor or occurring upon an acceleration of the principal amount of this Note by Lender following a Default, Borrower shall pay to Lender on the prepayment date (in addition to all other sums then due and owing to Lender under the Loan Documents) a prepayment charge equal to the greater of the following two amounts: (a) an amount equal to 1% of the then outstanding principal balance of the Loan; Note by Mortgagee on account of any default by Mortgagor (including, but not limited to, the making or (b) an amount equal to (i) the amountsuffering by Mortgagor, if any, by which the sum of any transfer or disposition of all or any portion of the present values Secured Property or any interest therein as prohibited by Section 1.11 of this Mortgage) will prejudice Mortgagee's ability to meet its ------------ obligations and to earn the return on the funds advanced to Mortgagor, which Mortgagee intended and expected to earn when it agreed to make the subject loan and will also result in other loss and additional expenses to Mortgagee. Accordingly, in recognition of the prepayment foregoing and in consideration of Mortgagee making the loan secured by this Mortgage at the interest rate and for the term set forth in the Note, Mortgagor hereby expressly (A) waives any and all rights it may have under applicable law to prepay without charge or premium all or any part of the Note, either voluntarily or upon an acceleration of the maturity date of all unpaid principal the Note on account of any default of Mortgagor (including, but not limited to, the making or suffering by Mortgagor of any transfer or disposition prohibited by Section 1.11 of this Mortgage) and interest payments required under this (B) agrees that if, for any ------------ reason, whether due to the voluntary acceptance by Mortgagee of a prepayment tendered by Mortgagor or the acceleration by Mortgagee of the maturity date of the Note, calculated as aforesaid, on account of any such default by discounting such payments from their respective scheduled payment dates back to Mortgagor, a prepayment of all or any part of the prepayment date at a discount rate equal to principal of the Periodic Treasury Yield (defined below) exceeds the outstanding principal balance Note is made by or on behalf of Mortgagor, or is otherwise made or occurs in connection with any reinstatement of the Loan as Documents under any foreclosure proceedings, or any right of redemption exercised by Mortgagor or any other party having the right to redeem or to prevent any foreclosure of this Mortgage, or upon the consummation of any foreclosure sale, then Mortgagor or any other party making any such prepayment shall be obligated to pay, concurrently therewith, the prepayment datecharge set forth in the Note, multiplied by (ii) and the payment of such premium shall be a fraction whose numerator is condition to the amount making of the such prepayment and whose denominator is shall be secured by this Mortgage. Such prepayment charge shall be paid without prejudice to the outstanding principal balance right of the Loan Mortgagee to collect any other amounts provided to be paid or to declare a default hereunder. Nothing herein shall be construed as of the permitting any partial prepayment dateexcept with Mortgagee's prior written consent thereto obtained in each instance. Notwithstanding anything contained in this Section 4.06 to the foregoing------------ contrary, no prepayment charge or other fee shall apply in respect to any insurance or condemnation proceeds received by ▇▇▇▇▇▇ and applied by ▇▇▇▇▇▇ be paid (i) within ninety (90) days prior to the outstanding principal balance end of the Loan. For purposes term of this Mortgage, as provided in the Note, or (ii) as a result of application of proceeds of a condemnation or destruction of the foregoingSecured Property, "Periodic Treasury Yield" means or (ciii) the annual yield to maturity as a result of an acceleration of the actively traded non-callable United States Treasury fixed interest rate security (other than any such security which can be surrendered at the option Obligations pursuant to Section 1.02(F) of the holder at face value in payment of federal estate tax or which was issued at a substantial discount) that has a maturity closest to (whether before, on or after) the Maturity Date (or if two or more such securities have maturity dates equally close to the Maturity Date, the average annual yield to maturity of all such securities), as reported in The Wall Street Journal or other authoritative publication or news retrieval service on the fifth Business Day preceding the prepayment date, divided by (d) 12, if scheduled payment dates are monthly, or 4, if scheduled payment dates are quarterly.this Mortgage. --------------- -45-