- 37 -
behalf of BOT a promissory note that was made payable to Union
Bank and that was in the same amount as that loan.
The interest rate on the UB $570,000 renewed loan first
renewal was set at Union Bank's LIBOR plus 1.5 percent or its
prime rate plus 1 percent. The interest rate on the UB $570,000
renewed loan second and third renewals was set at Union Bank's
LIBOR plus 1.5 percent or its reference rate25 plus 1 percent.
The interest rate on the UB $570,000 renewed loan final renewal
was set at Union Bank's reference rate plus 1 percent.
The first three renewals of the UB $570,000 renewed loan
were to bear interest at Union Bank's LIBOR plus 1.5 percent if,
in general, BOT informed Union Bank that it wished to pay inter-
est at that rate and specified the period for which that rate was
to be in effect. That period could have been between one and six
months for the UB $570,000 renewed loan first and third renewals
and one and three months for the UB $570,000 renewed loan second
renewal. If BOT did not so advise Union Bank, the UB $570,000
renewed loan was to bear interest at (1) the prime rate plus 1
percent in the case of the UB $570,000 renewed loan first renewal
and (2) the reference rate plus 1 percent in the case of the UB
$570,000 renewed loan second and third renewals.
25 The record does not make clear the difference, if any, be-
tween Union Bank's prime rate and its reference rate. Certain
Union Bank documents suggest that Union Bank personnel may have
used the terms interchangeably.
Page: Previous 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 NextLast modified: May 25, 2011