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would become due and payable at exactly the same time and in
exactly the same amounts as the aggregate principal obligations
of the FR notes issued by Finance. The 1979 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 FR
notes; (2) an amount equal to one-fourth of 1 percent per annum
of the aggregate principal amount of the FR 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 1979 promissory note further provided that the portion
of the interest payable to City equal to that payable by Finance
on the FR notes was due at the same time and in the same amount
as the interest payments became due and payable by Finance on the
FR notes. The balance of interest payable by City to Finance was
due only upon Finance’s written notice to City.
5. Consolidation of HGI Notes
The 1977 HGI note and the 1979 HGI note had been
consolidated into a third document captioned as a promissory note
issued by HGI to Finance in an amount equal to the $35,200,000
combined face values of the first two notes (the consolidated HGI
note), with a stated interest rate of 5.2 percent,
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