- 9 - interest payments under the 8-3/4-percent notes were unconditionally guaranteed by City. On the same day the 8-3/4-percent notes were issued, Finance transferred the $30 million proceeds to City. City issued a promissory note to Finance in the principal amount of $30 million (1977 promissory note). The 1977 promissory note provided that the principal amount owed would become due and payable at exactly the same time and in exactly the same amounts as the aggregate principal obligations of the 8-3/4-percent notes issued by Finance. The 1977 promissory note also required City to pay interest each year on any amount of indebtedness outstanding. The interest was to be equal to the sum of: (1) The total interest payable by Finance on the 8-3/4-percent notes; (2) an amount equal to one-fourth of 1 percent per annum of the aggregate principal amount of the 8-3/4-percent notes outstanding; and (3) an additional amount equal to the excess, if any, of Finance’s annual costs of operation over its annual gross receipts from all sources. The 1977 promissory note further provided that the portion of the interest payable by City equal to that payable by Finance on the 8-3/4-percent notes was due at the same time and in the same amount as the interest payments became due and payable by Finance on the 8-3/4-percent notes. The balance of the interestPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011