Common use of Note Rate Clause in Contracts

Note Rate. Interest shall accrue on the unpaid principal balance of the Loan from the Note Date at the Note Rate. The “Note Rate” is a variable rate of interest determined as follows: (i) for the period from the Note Date to the first Payment Day (defined below) to occur after the Note Date, the Note Rate is a rate equal to the Variable Rate Base in effect on the last Business Day of the month preceding the month in which the Note Date occurs plus a spread of 3.25% (the “Spread”); and (ii) thereafter, the Note Rate will equal the greater of (A) the Variable Rate Base in effect on the last Business Day of the month preceding a particular Variable Rate Set Date plus the Spread; or (B) the Note Rate in effect as of the Note Date, and the Note Rate determined pursuant to clause (ii) will be effective from such Variable Rate Set Date to the next Variable Rate Set Date. “Variable Rate Base” means a rate (rounded upwards, if necessary, to the nearest 1/100th of 1%) equal to the 90-day London Interbank Offered Rate as published in The Wall Street Journal. If for any reason such rate is no longer published in The Wall Street Journal, Lender shall select such replacement rate as Lender in its sole discretion determines most closely approximates such rate. “Variable Rate Set Date” means the first Payment Day to occur after the Note Date and each succeeding Payment Day. “Business Day” means any day of the year that is not a Saturday, Sunday or a day on which banks are required or authorized to close in Phoenix, Arizona or New York, New York.