Common use of Broken Funding Surcharge Clause in Contracts

Broken Funding Surcharge. Notwithstanding the terms of any Promissory Note giving the Borrower the right to repay any loan prior to the date it would otherwise be due and payable, the Borrower agrees to provide three Business Days’ prior written notice for any prepayment of a fixed rate balance and to pay to Lender a broken funding surcharge in the amount set forth below in the event the Borrower: (a) repays any fixed rate balance prior to the last day of its fixed rate period (whether such payment is made voluntarily, as a result of an acceleration, or otherwise); (b) converts any fixed rate balance to another fixed rate or to a variable rate prior to the last day of the fixed rate period applicable to such balance; or (c) fails to borrow any fixed rate balance on the date scheduled therefor. The surcharge will be in an amount equal to the greater of (1) the present value of any funding losses imputed by Lender to have been incurred as a result of such payment, conversion or failure or (2) $300.00. Notwithstanding the foregoing, in the event any fixed rate balance is repaid as a result of the Borrower refinancing the loan with another lender or by other means, then in lieu of the foregoing, the Borrower will pay to Lender a surcharge in an amount sufficient (on a present value basis) to enable Lender to maintain the yield it would have earned during the fixed rate period on the amount repaid. Any surcharge will be determined and calculated in accordance with methodology established by Xxxxxx, a copy of which will be made available upon request. Notwithstanding the foregoing, in the event of a conflict between the provisions of this section and of the broken funding charge section of a forward fix agreement between Lender and the Borrower, the provisions of the forward fix agreement will control.

Broken Funding Surcharge. Notwithstanding the terms of any provision contained in any Promissory Note and Supplement giving the Borrower Company the right to repay all or any loan portion of a Loan prior to the date it would otherwise be due and payable, the Borrower agrees or to provide three Business Days’ prior written notice for convert any prepayment of a fixed rate balance and to pay another fixed rate or to Lender a broken funding surcharge in variable rate prior to the amount set forth below last day of the fixed rate period applicable thereto, the Company agrees that in the event it converts any fixed rate balance prior to the Borrower: (a) last day of its fixed rate period or repays any fixed rate balance prior to the last day of its fixed rate period (whether such payment is made voluntarily, as a result of an acceleration, or otherwise); (b) converts any fixed rate balance to another fixed rate , or to a variable rate prior to the last day of the fixed rate period applicable to such balance; or (c) fails to borrow any fixed rate balance on the date scheduled therefor. The , the Company agrees that (unless otherwise expressly provided in a Promissory Note and Supplement) it will pay to CoBank a surcharge will be in an amount equal to the greater of (1) the present value of any funding losses imputed by Lender the difference between: (A) the amount of interest which would have accrued on such portion during the reminder of the applicable fixed rate period; less (B) the amount of interest that CoBank would earn if such portion were reinvested for the remaining fixed rate period in U.S. Treasury obligations having a weighted average life approximately equal to have been incurred as a result the weighted average life of such payment, conversion the balance being prepaid (or failure or (2) $300.00. Notwithstanding the foregoing, in the event any fixed rate balance is repaid as a result of the Borrower refinancing the loan with another lender or by other means, no such obligation then in lieu of the foregoingexists, the Borrower will pay to Lender a surcharge in an amount sufficient (on a present value basis) to enable Lender to maintain the yield it would have earned during the fixed rate period on the amount repaid. Any surcharge will be determined and calculated estimate by CoBank in accordance with its then current methodology established by Xxxxxxto be its all-in cost to fund a new loan having a weighted average life equal to the weighted average life of the balance being prepaid). For purpose of calculating present value, a copy of which the discount rate will be made available upon request. Notwithstanding the foregoingrate of interest accruing on the U.S. Treasury obligations selected in (B) above (or CoBank's estimated cost, in as the event of a conflict between the provisions of this section and of the broken funding charge section of a forward fix agreement between Lender and the Borrower, the provisions of the forward fix agreement will controlcase may be).

Broken Funding Surcharge. Notwithstanding any provision contained in the terms of any Promissory Note Credit Agreement giving the Borrower the right to repay any loan the Term Loan prior to the date it would otherwise be due and payable, the Borrower agrees to provide three Business Days’ prior written notice for any prepayment of a fixed rate balance any Converted Amount and to pay to Lender a broken funding surcharge in the amount set forth below that in the event the Borrower: (a) it repays any fixed rate balance Converted Amount prior to the applicable maturity date or prior to the last day of its the fixed rate period applicable thereto (whether such payment is made voluntarily, as a result of an acceleration, or otherwise); (b) converts any fixed rate balance to another fixed rate or to a variable rate prior to the last day of the fixed rate period applicable to such balance; or (c) fails to borrow any fixed rate balance on the date scheduled therefor. The surcharge will be in an amount equal to the greater of (1) the present value of any funding losses imputed by Lender to have been incurred as a result of such payment, conversion or failure or (2) $300.00. Notwithstanding the foregoing, in the event any fixed rate balance is repaid as a result of the Borrower refinancing the loan with another lender or by other means, then in lieu of the foregoing, the Borrower will pay to Lender a surcharge in an amount sufficient equal to the excess, if any, of (on a i) the present value basis) of the aggregate remaining periodic principal and interest payments due and allocable to enable Lender to maintain such prepaid Converted Amount from the yield it would have earned during date of prepayment through the fixed rate period of such Converted Amount using a discount rate equal to the yield to maturity of the U.S. Treasury Note with a maturity date closest to the remaining fixed rate period of such Converted Amount on the amount repaidBusiness Day immediately preceding the date of the prepayment over (ii) the Converted Amount, absent such prepayment. Any surcharge will Borrower hereby represents and warrants to the Lender that after giving effect to this Amendment, (i) no Default or Event of Default exists under the Credit Agreement or any of the other Loan Documents and (ii) the representations and warranties set forth in the Credit Agreement are true and correct in all material respects as of the date hereof (except for those which expressly relate to an earlier date). Borrower hereby ratifies the Credit Agreement as amended and acknowledges and reaffirms (i) that it is bound by all terms of the Credit Agreement applicable to it and (ii) that it is responsible for the observance and full performance of its respective obligations. Borrower hereby certifies that the person(s) executing this Amendment on behalf of Borrower is/are duly authorized to execute such document on behalf of Borrower and that there have been no changes in the name, ownership, control, organizational documents, or legal status of the Borrower since the last application, loan, or loan servicing action; that all resolutions, powers and authorities remain in full force and effect and that the information provided by Borrower is and remains true and correct. This Amendment may be determined and calculated executed by the parties hereto in accordance with methodology established by Xxxxxxseveral counterparts, a copy each of which will shall be made available upon requestdeemed to be an original and all of which shall constitute one and the same agreement. Notwithstanding the foregoing, in the event Delivery of a conflict between the provisions executed counterparts of this section Amendment by telecopy shall be effective as an original and shall constitute a representation that an original shall be delivered. THIS AMENDMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEBRASKA. This Amendment shall be binding upon and inure to the benefit of the broken funding charge section of a forward fix agreement between Lender parties hereto and the Borrower, the provisions of the forward fix agreement will controltheir respective successors and assigns.

Broken Funding Surcharge. Notwithstanding the terms of any Promissory Note giving the Borrower the right to repay any loan prior to the date it would otherwise be due and payable, the Borrower agrees to provide three Business Days’ ' prior written notice for any prepayment of a fixed rate balance and to pay to Lender a broken funding surcharge in the amount set forth below in the event the Borrower: (a) repays any fixed rate balance prior to the last day of its fixed rate period (whether such payment is made voluntarily, as a result of an acceleration, or otherwise); (b) converts any fixed rate balance to another fixed rate or to a variable rate prior to the last day of the fixed rate period applicable to such balance; or (c) fails to borrow any fixed rate balance on the date scheduled therefor. The surcharge will be in an amount equal to the greater of (1I) the present value of any funding losses imputed by Lender to have been incurred as a result of such payment, conversion or failure or (2) $300.00. Notwithstanding the foregoing, in the event any fixed rate balance is repaid as a result of the Borrower refinancing the loan with another lender or by other means, then in lieu of the foregoing, the Borrower will pay to Lender a surcharge in an amount sufficient (on a present value basis) to enable Lender to maintain the yield it would have earned during the fixed rate period on the amount repaid. Any surcharge will be determined and calculated in accordance with methodology established by XxxxxxLender, a copy of which will be made available upon request. Notwithstanding the foregoing, in the event of a conflict between the provisions of this section and of the broken funding charge section of a forward fix agreement between Lender and the Borrower, the provisions of the forward fix agreement will control.