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with respect to the UB $570,000 renewed loan first through third
renewals. The period for which that rate was to be in effect
could have been between one and six months. If Radcliffe did not
select the LIBOR-based rate, the UB original $325,000 loan was to
bear interest at Union Bank's prime rate plus 1 percent. The
promissory note documenting that loan provided that the interest
on that loan was payable by Radcliffe (1) at the maturity of any
period during which a LIBOR-based interest rate was in effect for
no more than six months and (2) monthly on the 15th day of each
month for any period during which a prime rate-based rate was in
effect.
Union Bank renewed the original UB $325,000 loan on two
occasions for periods that ended on the following dates: April
10, 1986 (UB $325,000 loan first renewal) and July 10, 1986 (UB
$325,000 loan final renewal). To document the UB $325,000 loan
first renewal, petitioner signed on behalf of Radcliffe a promis-
sory note that was made payable to Union Bank and that was in the
same amount as that loan.
The interest rate on the UB $325,000 loan first renewal was
set at Union Bank's LIBOR plus 1.5 percent or its prime rate plus
1 percent. That renewal was to bear interest at the LIBOR-based
rate if that rate were selected by Radcliffe in a manner essen-
tially the same as that described above with respect to the UB
$570,000 renewed loan first through third renewals. If Radcliffe
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