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notes, in the aggregate principal amount of $374,850,
payable to EMI with monthly installments of interest only
on the unpaid principal balance for 5 years at the rate of
14.375 percent. Thereafter, the notes required EA 83-XII
to pay monthly installments of principal and interest for
5 years. The principal amount of each note was due at the
end of 10 years, or January 1, 1993. On March 1, 1983, the
parties executed an Allonge to Note for each of the seven
notes. The Allonge to Note states as follows:
The Note shall bear interest at the rate
computed as follows: (a) the rate of interest
for the first sixty (60) full calendar months
of the loan term shall be Fourteen and 375/1000
(14.375%) per annum; (b) thereafter, the rate of
interest shall be adjusted annually, commencing
with the sixty-first (61st) full calendar month
of the loan term, to a rate per annum equal to
the sum of the FNMA auction price in effect on
the first day of the calendar month immediately
preceding the month of such adjustment plus 237.5
basis points, payable as follows:
Interest only on the unpaid principal
balance, computed as set forth in (a) above,
shall be payable on the first day of each month
commencing April 1, 1983 and on the first day
of each succeeding month through and including
March 1, 1988. Thereafter, payments of monthly
installments of principal and interest at the
rate per annum as set forth in (b) above, shall
be fully amortized over the remaining sixty (60)
months of the loan term, except that any remain-
ing indebtedness, if not sooner paid, shall be
due and payable in full on March 1, 1993.
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