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The promissory note petitioner signed on behalf of BOT to
document the UB $570,000 renewed loan first renewal provided that
the interest rate on that loan was not to be less than 1 percent
more than the annualized effective interest rate on the bank
deposit pledged to secure that loan. That note also provided
that the interest on that loan was payable by BOT semiannually if
the UB $570,000 renewed loan first renewal bore interest at Union
Bank's LIBOR plus 1.5 percent and monthly if that loan bore
interest at the prime rate plus 1 percent. The promissory note
documenting the UB $570,000 renewed loan second renewal provided
that the interest on that loan was payable by BOT on the first of
each month. The promissory note documenting the UB $570,000
renewed loan third renewal provided that the interest on that
renewal was payable by BOT on the 10th of each month. The
interest on the UB $570,000 renewed loan final renewal was also
payable by BOT on the 10th of each month.
The actual interest rate percentages (percentage interest
rates) that were derived from Union Bank's LIBOR, prime, or
reference rates, as the case may be, and (1) that were applicable
to the UB $570,000 renewed loan third renewal were 10.5 percent
as of December 31, 1985, and 10 percent as of March 7, 1986, and
(2) that were applicable to the UB $570,000 renewed loan final
renewal were 10 percent initially and 9.5 percent as of April 21,
1986, where the percentage interest rate remained for the balance
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