LIN - ACQUISITION DOCUMENTS - Laserfiche WebLink

(1) Interest Accrual During the Term. Commencing from July 21, 1992 and continuing on the first day of each Month thereafter, the amount of Five Hundred Sixty -Five Dollars and Sixty -Four Cents ($565.64), which amount represents interest only on the principal at the Contract Rate, shall accrue and be payable on the Maturity Date, subject to the termination provisions in paragraph 4, below. (2) Payment on Maturity Date. Except as otherwise provided below, the entire unpaid principal balance hereof together with any accrued monthly interest payments that have become due, shall be due and payable in full on the Maturity Date. 3. Default. In the event the payment of principal and accrued interest due on the Maturity Date hereof is not made when due, subject to the termination provisions of Paragraph 4, such principal amount, together with any accrued interest, shall bear interest at the maximum rate permitted to be charged by Holder under the existing California law, but not less than the Contract Rate. 4. Termination. Pursuant to the terms of the MOU and the Acquisition Agreement, this Note shall be cancellable upon the execution of an Agreement for Water Supply to LIN from DSRSD, together with the execution of a Joint Use Agreement between DSRSD and CITY, prior to December 31, 1995. The subject Water Supply Agreement shall contain, among other things, a credit to LIN for the value of land dedicated to Maker by LIN for the purpose of constructing and maintaining a water reservoir. Holder agrees to give notice to e:\l-p\lin\dots\promise.nte (9/16/92) 3