|
of accrued unpaid interest. Rather, early payments will reduce the principal balance due. Borrower
<br />agrees not to send Lender payments marked "paid in full", "without recourse", or similar language. If
<br />Borrower sends such a payment, Lender may accept it without losing any of Lender"s rights under this
<br />Note, and Borrower will remain obligated to pay any further amount owed to Lender. All written
<br />communications concerning disputed amounts, including any check or other payment instrument that
<br />indicates that the payment constitutes "payment in full" of the amount owed or that is tendered with other
<br />conditions or limitations or as full satisfaction of a disputed amount must be mailed or delivered to:
<br />POST MATURITY RATE. The Post Maturity Rate on this Note is the lesser of the maximum rate
<br />allowed by applicable law or 18.000% per annum. Borrower will pay interest on all sums due after final
<br />maturity, whether by acceleration or otherwise, at that rate.
<br />DEFAULT. Each of the following shall constitute an event of default (AEvent of Default@) under this
<br />Note:
<br />Payment Default. Borrower fails to make any payment when due under this Note.
<br />Other Defaults. Borrower fails to comply with or to perform any other term, obligation,
<br />covenant, or condition contained in this Note or in any of the related documents or to comply with
<br />or to perform any term, obligation, covenant or condition contained in any other agreement between
<br />Lender and Borrower.
<br />Default in Favor of Third Parties. Borrower or any Grantor defaults under any loan, extension
<br />of credit, security agreement, purchase or sales agreement, or any other agreement, in favor of any
<br />other creditor or person that may materially affect any of Borrower;s property or Borrower's ability
<br />to repay this Note or perform Borrower=s obligations under this Note or any of the related
<br />documents.
<br />False Statements. Any warranty, representation or statement made or furnished to Lender by
<br />Borrower or on Borrower's behalf under this Note or the related documents is false or misleading
<br />in any material respect, either now or at the time made or furnished or becomes false or misleading
<br />at any time thereafter.
<br />Insolvency. The dissolution or termination of Borrower's existence as a going business, the
<br />insolvency of Borrower, the appointment of a receiver for any part of Borrower's property, any
<br />assignment for the benefit of creditors, any type of creditor workout, or the commencement of any
<br />proceeding under any bankruptcy or insolvency laws by or against Borrower.
<br />Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings,
<br />whether by judicial proceeding, self-help, repossession or any other method, by any creditor of
<br />Borrower or by any governmental agency against any collateral securing the loan. This includes
<br />a garnishment of any of Borrower's accounts, including deposit accounts, with Lender. However,
<br />this Event of Default shall not apply if there is a good faith dispute by Borrower as to the validity
<br />or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if
<br />Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with
<br />Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined
<br />by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute.
<br />Events Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor,
<br />endorser, surety, or accommodation party of any of the indebtedness or any guarantor, endorser,
<br />surety, or accommodation party dies or becomes incompetent, or revokes or disputes the validity
<br />of, or liability under, any guaranty of the indebtedness evidenced by this Note.
<br />Adverse Change. A material adverse change occurs in Borrower's financial condition, or Lender
<br />believes the prospect of payment or performance of this Note is impaired.
<br />NOTICE OF DEFAULT. If Borrower fails to make any payment on the Note when due, Lender shall
<br />deliver to Borrower written notice of such default describing the amount past due, and if Borrower fails to
<br />bring the payment current within Sixty (60) days after delivery of such notice, this failure shall be an Event
<br />
|