Louisville Housing Authority Agenda and Packet 2012 02 28

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the payment order set forth in Section 13.1 of the Partnership Agreement out of Net Cash Flow, as that term is defined in the Partnership Agreement. 1. Payments of Interest. Interest accrued on the Note shall accrue at a rate of 9.0%per annum. Deferred payments of interest shall not accrue interest and shall be paid upon maturity. 2. Optional payments of Principal and Interest. The principal balance of this Note may be paid in part or in full at any time without premium or penalty. Any prepayment shall be applied first to accrued interest and then to principal.. In the case of a partial payment of principal,subsequent interest payments shall be computed on the remaining outstanding principal balance. 3. Maturity. If not otherwise paid,this Note shall be due and payable in full on December 31,2030, or,at the option of the holder of this Note,upon any default under this Note or any agreement or instrument securing this Note, which default remains uncured after any applicable cure period. 4. Use of Proceeds. The Proceeds of this Note shall be used solely in connection with the construction and development of the Project in such manner as shall be determined in the reasonable discretion of the general partner of the Partnership. 5. -Default; .Borrower shall not be in default hereunder unless, (i) Borrower fails to pay any,installment within 10 days after written notice from the holder that it is due,(ii) Borrower fails to pay any other amounts due hereunder within 10 days after written notice from the holder that it is.due,(iii)Borrower fails to cure any non-monetary default within 20 days after written notice from holder specifying the default,or(iv) any default occurs under any instrument or agreement securing this Note and such • default is not cured within any applicable cure period. 6. Late Charge. If any installment payable under this Note is not paid in full within • fifteen(15)days of its due date, the holder of this Note may assess a late charge equal to five percent(5%)of the late installment payment. The late charge shall be paid with the late installment payment or within 15 days after demand therefore, but if not so paid,the holder of this Note may add the late charge to the principal balance of this Note. It is specifically understood,however,that assessment of a late charge is not a waiver of the holder's right to demand and receive timely payment of installments or waiver of any of the holder's remedies hereunder or under any instrument or agreement securing this Note. 7. Interest on Late Charges. If the late charge is not paid as provided in Section 6 of this Note,and if the late charge is added to the principal balance,the late charge itself will . bear interest at the rate of interest on the outstanding principal balance provided for under this Note. 9