Maximum Legal Rate. The following provisions shall control this Agreement and each Note: (a) No agreements, conditions, provision or stipulations contained in this Agreement or in any other Loan Document, or the occurrence of an Event of Default, or the exercise by the Lender of the right to accelerate the payment of the maturity of principal and interest on any Note, or to exercise any option whatsoever contained in this Agreement or any other Loan Document, or the arising of any contingency whatsoever, shall entitle the Lender to collect, in any event, interest exceeding the maximum rate of nonusurious interest allowed from time to time by applicable state or federal laws as now or as may hereinafter be in effect (the "MAXIMUM LEGAL RATE") and in no event shall the Borrower be obligated to pay interest exceeding such Maximum Legal Rate, and all agreements, conditions or stipulations, if any, which may in any event or contingency whatsoever operate to bind, obligate or compel the Borrower to pay a rate of interest exceeding the Maximum Legal Rate shall be without binding force or effect, at law or in equity, to the extent only of the excess of interest over such Maximum Legal Rate. In the event any interest is charged in excess of the Maximum Legal Rate (the "EXCESS"), the Borrower acknowledges and stipulates that any such charge shall be the result of an accidental and bona fide error, and such (b) Unless preempted by federal law, the rate of interest from time to time in effect hereunder shall not exceed the "indicated rate ceiling" from time to time in effect under Chapter 1 of the Texas Credit Code (Vernon's Texas Civil Statutes), Section (a)(1), Article 5069-1.04, as amended. (c) The provisions of this Section shall be deemed to be incorporated into every document or communication relating to the Indebtedness which sets forth or prescribes any account, right or claims or alleged account, right or claim of the Lender with respect to the Borrower (or any other obligor in respect of the Indebtedness), whether or not any provision of this Section is referred to therein. All such documents and communications and all figures set forth therein shall, for the sole purpose of computing the extent of the obligations asserted by the Lender thereunder, be automatically recomputed by the Borrower or any other obligor, and by any court considering the same, to give effect to the adjustments or credits required by this Section. (d) If the applicable state or federal law is amended in the future to allow a greater rate of interest to be charged under this Agreement than is presently allowed by applicable state or federal law, then the limitation of interest hereunder shall be increased to the maximum rate of interest allowed by applicable state or federal law, as amended, which increase shall be effective hereunder on the effective date of such amendment, and all interest charges owing to the Lender by reason thereof shall be payable upon demand.
Appears in 2 contracts
Samples: Revolving Credit Loan Agreement (Thomas Group Inc), Revolving Credit Loan Agreement (Thomas Group Inc)
Maximum Legal Rate. The following provisions All agreements between Borrower, Guarantors, and Lender are hereby expressly limited so that in no contingency or event whatsoever, whether by reason of acceleration of maturity of the Obligations or otherwise, shall control this Agreement and each Note:
(a) No agreements, conditions, provision the amount paid or stipulations contained in this Agreement or in any other Loan Document, agreed to be paid to Lender for the use or the occurrence forbearance of an Event of Default, or the exercise Indebtedness evidenced by the Lender of Note exceed the right to accelerate the payment of the maturity of principal and interest on any Note, or to exercise any option whatsoever contained in this Agreement or any other Loan Document, or the arising of any contingency whatsoever, shall entitle the Lender to collect, in any event, interest exceeding the maximum rate of nonusurious interest allowed from time to time by applicable state or federal laws as now or as may hereinafter be in effect (the "MAXIMUM LEGAL RATE") and in no event shall the Borrower be obligated to pay interest exceeding such Maximum Legal Rate. As used herein, and all agreementsthe Maximum Legal Rate shall mean the Maximum Legal Rate in effect as of the date hereof; provided, conditions or stipulationshowever, if any, in the event that there is a change in the Maximum Legal Rate which may results in any event or contingency whatsoever operate to bind, obligate or compel the Borrower to pay a higher permissible rate of interest exceeding interest, then the Maximum Legal Rate shall be without binding force or effectgoverned by such new law as of its effective date. In this regard, at law or it is expressly agreed that it is the intent of Borrower, Lender and Lender in equitythe execution, delivery and acceptance of this Agreement and the Notes to contract in strict compliance with the extent only laws of the excess State of interest over such Maximum Legal Rate. In the event any interest is charged in excess of the Maximum Legal Rate (the "EXCESS"), the Borrower acknowledges and stipulates that any such charge shall be the result of an accidental and bona fide error, and such
(b) Unless preempted by federal law, the rate of interest Texas from time to time in effect hereunder effect. If, under or from any circumstances whatsoever, fulfillment of any provision hereof or of any of the other Loan Documents at the time of performance of such provision shall not be due, shall involve transcending the limit of such validity prescribed by applicable law, then the obligation to be fulfilled shall automatically be reduced to the limits of such validity, and if under or from any circumstances whatsoever Lender should ever receive as interest any amount which would exceed the "indicated rate ceiling" from time Maximum Legal Rate, such amount which would be excessive interest shall be applied to time in effect under Chapter 1 the reduction of the Texas Credit Code (Vernon's Texas Civil Statutes)principal balance of the Obligations and not to the payment of interest. This provision shall control every other provision of all agreements between Borrower, Section (a)(1), Article 5069-1.04, as amended.
(c) Guarantor and Lender. The provisions of this Section 2.3.6 shall be deemed to be incorporated into every document or communication relating to the Indebtedness Obligations which sets forth or prescribes any account, right or claims claim or alleged account, right or claim of the Lender Agent and/or Lenders with respect to the Borrower (or any other obligor in respect of the IndebtednessObligations), whether or not any provision of this Section 2.3.6 is referred to therein. All such documents and communications and all figures set forth therein shall, for the sole purpose of computing the extent of the Obligations and obligations of the Borrower (or other obligor) asserted by the Lender thereunder, be automatically recomputed by the Borrower or any other obligor, and by any court considering the same, to give effect to the adjustments or credits required by this SectionSection 2. 3.6.
(d) If the applicable state or federal law is amended in the future to allow a greater rate of interest to be charged under this Agreement than is presently allowed by applicable state or federal law, then the limitation of interest hereunder shall be increased to the maximum rate of interest allowed by applicable state or federal law, as amended, which increase shall be effective hereunder on the effective date of such amendment, and all interest charges owing to the Lender by reason thereof shall be payable upon demand.
Appears in 2 contracts
Samples: Loan Agreement (STW Resources Holding Corp.), Loan Agreement (STW Resources Holding Corp.)
Maximum Legal Rate. The following provisions All agreements between Borrower, Agent and Lenders are hereby expressly limited so that in no contingency or event whatsoever, whether by reason of acceleration of maturity of the Obligations or otherwise, shall control this Agreement and each Note:
(a) No agreements, conditions, provision the amount paid or stipulations contained in this Agreement agreed to be paid to Agent or in any other Loan Document, Lenders for the use or the occurrence forbearance of an Event of Default, or the exercise Indebtedness evidenced by the Lender of Notes exceed the right to accelerate the payment of the maturity of principal and interest on any Note, or to exercise any option whatsoever contained in this Agreement or any other Loan Document, or the arising of any contingency whatsoever, shall entitle the Lender to collect, in any event, interest exceeding the maximum rate of nonusurious interest allowed from time to time by applicable state or federal laws as now or as may hereinafter be in effect (the "MAXIMUM LEGAL RATE") and in no event shall the Borrower be obligated to pay interest exceeding such Maximum Legal Rate. As used herein, and all agreementsthe Maximum Legal Rate shall mean the Maximum Legal Rate in effect as of the date hereof; provided, conditions or stipulationshowever, if any, in the event that there is a change in the Maximum Legal Rate which may results in any event or contingency whatsoever operate to bind, obligate or compel the Borrower to pay a higher permissible rate of interest exceeding interest, then the Maximum Legal Rate shall be without binding force or effectgoverned by such new law as of its effective date. In this regard, at law or it is expressly agreed that it is the intent of Borrower, Agent and Lenders in equitythe execution, delivery and acceptance of this Agreement and the Notes to contract in strict compliance with the extent only laws of the excess State of interest over such Maximum Legal Rate. In the event any interest is charged in excess of the Maximum Legal Rate (the "EXCESS"), the Borrower acknowledges and stipulates that any such charge shall be the result of an accidental and bona fide error, and such
(b) Unless preempted by federal law, the rate of interest Rhode Island from time to time in effect hereunder shall not exceed the "indicated rate ceiling" effect. If, under or from time to time in effect under Chapter 1 any circumstances whatsoever, fulfillment of any provision hereof or of any of the Texas Credit Code (Vernon's Texas Civil Statutes), Section (a)(1), Article 5069-1.04, as amended.
(c) The provisions other Loan Documents at the time of this Section performance of such provision shall be deemed to be incorporated into every document or communication relating to due, shall involve transcending the Indebtedness which sets forth or prescribes any account, right or claims or alleged account, right or claim limit of the Lender with respect to the Borrower (or any other obligor in respect of the Indebtedness), whether or not any provision of this Section is referred to therein. All such documents and communications and all figures set forth therein shall, for the sole purpose of computing the extent of the obligations asserted by the Lender thereunder, be automatically recomputed by the Borrower or any other obligor, and by any court considering the same, to give effect to the adjustments or credits required by this Section.
(d) If the applicable state or federal law is amended in the future to allow a greater rate of interest to be charged under this Agreement than is presently allowed validity prescribed by applicable state or federal law, then the limitation obligation to be fulfilled shall automatically be reduced to the limits of such validity, and if under or from any circumstances whatsoever Agent or any Lender should ever receive as interest hereunder any amount which would exceed the Maximum Legal Rate, such amount which would be excessive interest shall be increased applied to the maximum rate reduction of interest allowed by applicable state or federal law, as amended, which increase shall be effective hereunder on the effective date principal balance of such amendment, the Obligations and all interest charges owing not to the Lender by reason thereof payment of interest. This provision shall be payable upon demandcontrol every other provision of all agreements between Borrower, Agent and Lenders.
Appears in 1 contract
Maximum Legal Rate. It is the intent of the Borrower and the -------------------- Lender to conform strictly to all applicable state and federal usury laws. The following provisions Loan Documents and all other agreements between Borrower and the Lender whether now existing or hereafter arising and whether written or oral, are hereby expressly limited so that in no contingency or event whatsoever, whether by reason of acceleration of the maturity hereof or otherwise, shall control this Agreement the amount contracted for, charged or received by the Lender for the use, forbearance, or detention of the money loaned hereunder or otherwise, or for the payment or performance of any covenant or obligation contained herein or in any other Loan Documents evidencing, securing or pertaining to the Obligations evidenced hereby which may be legally deemed to be for the use, forbearance or detention of money, exceed the Maximum Legal Rate or the maximum amount which the Borrower and each Note:
any successors or assigns of the Borrower or any such person (aif any) No agreementsis obligated to pay and which the Lender is legally entitled to contract for, conditionscharge or collect under applicable state or federal law. If from any circumstances whatsoever fulfillment of any provision hereof or of such other Loan Documents, at the time performance of such provision shall be due, shall involve transcending the Maximum Legal Rate, then the obligation to be fulfilled shall be automatically reduced to such limit, and if from any such circumstance the Lender shall ever receive as interest or stipulations contained otherwise an amount in this Agreement excess of the Maximum Legal Rate or the maximum that can be legally collected, then such amount which would be excessive interest shall be applied to the reduction of the principal indebtedness hereof and any other amounts due with respect to the Obligations evidenced hereby or in any other Loan Document, or the occurrence of an Event of Default, or the exercise by the Lender of the right but not to accelerate the payment of interest and if such amount which would be excess interest exceeds the maturity of principal Obligations and all other non interest on indebtedness described above, then such additional amount shall be refunded to the Borrower. If any Noteexcess interest in such respect is provided for in this Agreement, or shall be adjudicated to exercise be so provided, or in any option whatsoever contained other Loan Document or otherwise in connection with this transaction, the provisions of this Section 9.14 shall govern and prevail and neither the Borrower nor any successors or assigns of the Borrower or any such person (if any) shall be obligated to pay the excess amount of such interest or any other excess sum paid for the use, forbearance, or detention of sums loaned pursuant hereto. In determining whether or not all sums paid or agreed to be paid by the Borrower for the use, forbearance or detention of the Obligations of the Borrower to the Lender, under any specific contingency, exceeds the Maximum Legal Rate or the maximum amount permitted by applicable law, the Borrower and the Lender shall to the maximum extent permitted under applicable law, (a) treat all Obligations as but a single extension of credit, (b) characterize any non-principal payment as an expense, fee or premium rather than as sums paid or agreed to be paid by the Borrower for the use, forbearance or detention of the Obligations of the Borrower to the Lender, (c) exclude voluntary prepayments and the effect thereof, and (d) amortize, prorate, allocate and spread in equal parts, the total amount of such sums paid or agreed to be paid by the Borrower for the use, forbearance or detention of the Obligations of the Borrower to the Lender throughout the entire contemplated term of the Obligations so that the interest rate is uniform through the entire term of the Obligations. In the event that any of the contract rates computed under this Agreement or any other Loan Document, or Document hereof would exceed the arising of any contingency whatsoever, shall entitle the Lender to collect, in any event, interest exceeding the maximum rate of nonusurious interest allowed from time to time by applicable state or federal laws as now or as may hereinafter be in effect (the "MAXIMUM LEGAL RATE") and in no event shall the Borrower be obligated to pay interest exceeding such Maximum Legal Rate, and all agreements, conditions or stipulations, if any, which may in any event or contingency whatsoever operate to bind, obligate or compel the Borrower to pay a rate of interest exceeding the Maximum Legal Rate shall be without binding force or effect, at law or in equity, to the extent only of the excess of interest over such Maximum Legal Rate. In the event any interest is charged in excess of the Maximum Legal Rate (the "EXCESS"), the Borrower acknowledges and stipulates that any such charge shall be the result of an accidental and bona fide error, and such
(b) Unless preempted by federal law, the rate of interest from time under this Agreement or such other Loan Agreement for any such period shall be limited to time the Maximum Legal Rate, but any subsequent reductions in effect hereunder the applicable contract rate shall not exceed reduce the "indicated rates of interest under this Agreement or such other Loan Document below the Maximum Legal Rate until the total amount of interest charged equals the amount of interest that would have been charged had the applicable contract rate ceiling" from time been charged at all times. The Borrower and Lender hereby agree if, despite the provisions of Section 9.9 of this Agreement, Texas law is deemed to time in effect under apply, that except for Section 346.004 thereof, the provisions of Chapter 1 346 of the Texas Credit Finance Code (Vernon's Texas Civil StatutesCode Annotated), Section (a)(1)as amended from time to time, Article 5069-1.04, as amended.
(c) shall not apply to this Agreement or any of the other Loan Documents. The terms and provisions of this Section 9.14 shall be deemed to be incorporated into control and supersede every document or communication relating to other provision hereof, the Indebtedness which sets forth or prescribes any account, right or claims or alleged account, right or claim of the Lender with respect to the Borrower (or any other obligor in respect of the Indebtedness), whether or not any provision of this Section is referred to therein. All such documents and communications Loan Documents and all figures set forth therein shall, for the sole purpose of computing the extent of the obligations asserted by the Lender thereunder, be automatically recomputed by the other agreements between Borrower or any other obligor, and by any court considering the same, to give effect to the adjustments or credits required by this Section.
(d) If the applicable state or federal law is amended in the future to allow a greater rate of interest to be charged under this Agreement than is presently allowed by applicable state or federal law, then the limitation of interest hereunder shall be increased to the maximum rate of interest allowed by applicable state or federal law, as amended, which increase shall be effective hereunder on the effective date of such amendment, and all interest charges owing to the Lender by reason thereof shall be payable upon demand.Lender
Appears in 1 contract
Samples: Loan and Security Agreement (Charys Holding Co Inc)
Maximum Legal Rate. The following provisions shall control this Agreement and each Note:
(a) No agreements, conditions, provision or stipulations contained in this Agreement or in any other Loan Document, or the occurrence of an Event of Default, or the exercise by the Lender of the right to accelerate the payment of the maturity of principal and interest on any Note, or to exercise any option whatsoever contained in this Agreement or any other Loan Document, or the arising of any contingency whatsoever, shall entitle the Lender to collect, in any event, interest exceeding the maximum rate of nonusurious interest allowed from time to time by applicable state or federal laws as now or as may hereinafter be in effect (the "MAXIMUM LEGAL RATEMaximum Legal Rate") and in no event shall the Borrower be obligated to pay interest exceeding such Maximum Legal Rate, and all agreements, conditions or stipulations, if any, which may in any event or contingency whatsoever operate to bind, obligate or compel the Borrower to pay a rate of interest exceeding the Maximum Legal Rate shall be without binding force or effect, at law or in equity, to the extent only of the excess of interest over such Maximum Legal Rate. In the event any interest is charged in excess of the Maximum Legal Rate (the "EXCESS"), the Borrower acknowledges and stipulates that any such charge shall be the result of an accidental and bona fide error, and suchforce
(b) Unless preempted by federal law, the rate of interest from time to time in effect hereunder shall not exceed the "indicated rate ceiling" from time to time in effect under Chapter 1 of the Texas Credit Code (Vernon's Texas Civil Statutes), Section (a)(1), Article 5069-1.04, as amended.
(c) The provisions of this Section shall be deemed to be incorporated into every document or communication relating to the Indebtedness which sets forth or prescribes any account, right or claims or alleged account, right or claim of the Lender with respect to the Borrower (or any other obligor in respect of the Indebtedness), whether or not any provision of this Section is referred to therein. All such documents and communications and all figures set forth therein shall, for the sole purpose of computing the extent of the obligations asserted by the Lender thereunder, be automatically recomputed by the Borrower or any other obligor, and by any court considering the same, to give effect to the adjustments or credits required by this Section.
(d) If the applicable state or federal law is amended in the future to allow a greater rate of interest to be charged under this Agreement than is presently allowed by applicable state or federal law, then the limitation of interest hereunder shall be increased to the maximum rate of interest allowed by applicable state or federal law,
(e) The provisions of Chapter 15 of the Texas Credit Code (Vernon's Texas Civil Statutes), Article 5069-15, as amended, which increase shall are specifically declared by the parties hereto not to be effective hereunder on the effective date of such amendment, and all interest charges owing applicable to this Agreement or any other Loan Document or to the Lender by reason thereof shall be payable upon demandtransactions contemplated hereby or thereby.
Appears in 1 contract
Maximum Legal Rate. The following provisions shall control this Agreement and each Note:
(a) No agreements, conditions, provision or stipulations contained in this Agreement or in any other Loan Document, or the occurrence of an Event of Default, or the exercise by the Lender of the right to accelerate the payment of the maturity of principal and interest on any Note, or to exercise any option whatsoever contained in this Agreement or any other Loan Document, or the arising of any contingency whatsoever, shall entitle the Lender to collect, in any event, interest exceeding the maximum rate of nonusurious interest allowed from time to time by applicable state or federal laws as now or as may hereinafter be in effect (the "MAXIMUM LEGAL RATE") and in no event shall the Borrower be obligated to pay interest exceeding such Maximum Legal Rate, and all agreements, conditions or stipulations, if any, which may in any event or contingency whatsoever operate to bind, obligate or compel the Borrower to pay a rate of interest exceeding the Maximum Legal Rate shall be without binding force or effect, at law or in equity, to the extent only of the excess of interest over such Maximum Legal Rate. In the event any interest is charged in excess of the Maximum Legal Rate (the "EXCESSExcess Interest"), the Borrower acknowledges and stipulates that any such charge shall be the result of an accidental and bona fide error, and such
such Excess Interest shall be, first, applied to reduce the principal then unpaid hereunder; second, applied to reduce any other Obligations, until paid in full; and third, returned to Borrower, it being the intention of the parties hereto not to enter at any time into a usurious or otherwise illegal relationship. Borrower recognizes that, with fluctuations in the Maximum Legal Rate, such an unintentional result could inadvertently occur. By the execution of this Agreement, Borrower covenants that (bi) Unless preempted the credit or return of any Excess Interest shall constitute the acceptance by federal lawthe Borrower of such Excess Interest, and (ii) the rate of interest from time to time in effect hereunder Borrower shall not exceed seek or pursue any other remedy, legal or equitable, against Lender, based in whole or in part upon the "indicated rate ceiling" from time to time charging or receiving of any interest in effect under Chapter 1 excess of the Texas Credit Code (Vernon's Texas Civil Statutes)maximum authorized by applicable law. For the purpose of determining whether or not any Excess Interest has been contracted for, Section (a)(1)charged or received by Lender, Article 5069-1.04all interest at any time contracted for, as amended.
(c) charged or received by the Lender in connection with this Agreement shall be amortized, prorated, allocated and spread in equal parts during the entire term of this Agreement. The provisions of this Section shall be deemed to be incorporated into each and every document Term Note and other Loan Document or communication relating to the Indebtedness Obligations which sets forth or prescribes any account, right or claims claim or alleged account, right or claim of the Lender with respect to the Borrower (or any other obligor in respect of the IndebtednessObligations), whether or not any provision of this Section is referred to therein. All such documents and communications and all figures set forth therein shall, for the sole purpose of computing the extent of the liabilities and obligations of Borrower (or any other such obligor) asserted by the Lender thereunder, be automatically recomputed by the Borrower or any other obligor, and by any court considering the same, to give effect to the adjustments or credits required by this Section.
(d) . If the applicable state or federal law is amended in the future to allow a greater rate of interest to be charged under this Agreement or any other Loan Documents than is presently allowed by applicable state or federal law, then the limitation of interest hereunder under this Section shall be increased to the maximum rate of interest allowed by applicable state or federal law, law as amended, which increase shall be effective hereunder on the effective date of such amendment, and all interest charges owing to the Lender by reason thereof shall be payable upon demand.
Appears in 1 contract
Maximum Legal Rate. The following provisions shall control this Agreement and each Note:
(a) No agreements, conditions, provision or stipulations contained in this Agreement or in any other Loan Document, or the occurrence of an Event of Default, or the exercise by the Lender of the right to accelerate the payment of or the maturity of principal and interest on any Note, or to exercise any option whatsoever contained in this Agreement or any other Loan Document, or the arising of any contingency whatsoever, shall entitle the Lender to collect, in any event, interest exceeding the maximum rate of nonusurious interest allowed from time to time by applicable state or federal laws as now or as may hereinafter be in effect (the "MAXIMUM LEGAL RATE") and in no event shall the Borrower be obligated to pay interest exceeding such Maximum Legal Rate, and all agreements, conditions or stipulations, if any, which may in any event or contingency whatsoever operate to bind, obligate or compel the Borrower to pay a rate of interest exceeding the Maximum Legal Rate shall be without binding force or effect, at law or in equity, to the extent only of the excess of interest over such Maximum Legal Rate. In the event any interest is charged in excess of the Maximum Legal Rate (the "EXCESS"), the Borrower acknowledges and stipulates that any such charge shall be the result of an accidental and bona fide error, and suchsuch Excess shall be, first, applied to reduce the
(b) Unless preempted by federal law, the rate of interest from time to time in effect hereunder shall not exceed the "indicated rate applicable weekly ceiling" from time to time in effect under Chapter 1 of the Texas Credit Code Title (Vernon's Texas Civil Statutes), Section (a)(1), Article 5069-1.041D.001, as amended.
(c) The provisions of this Section shall be deemed to be incorporated into every document or communication relating to the Senior Indebtedness which sets forth or prescribes any account, right or claims or alleged account, right or claim of the Lender with respect to the Borrower (or any other obligor in respect of the Senior Indebtedness), whether or not any provision of this Section is referred to therein. All such documents and communications and all figures set forth therein shall, for the sole purpose of computing the extent of the obligations asserted by the Lender thereunder, be automatically recomputed by the Borrower or any other obligor, and by any court considering the same, to give effect to the adjustments or credits required by this Section.
(d) If the applicable state or federal law is amended in the future to allow a greater rate of interest to be charged under this Agreement than is presently allowed by applicable state or federal law, then the limitation of interest hereunder shall be increased to the maximum rate of interest allowed by applicable state or federal law, as amended, which increase shall be effective hereunder on the effective date of such amendment, and all interest charges owing to the Lender by reason thereof shall be payable upon demand.
(e) The provisions of Chapter 346 of the Texas Finance Code (Vernon's
Appears in 1 contract
Samples: Revolving Credit and Term Loan Agreement (Zimmerman Sign Co)
Maximum Legal Rate. It is the intent of the Borrower and the Lender to conform strictly to all applicable state and federal usury laws. The following provisions Loan Documents and all other agreements between Borrower and the Lender whether now existing or hereafter arising and whether written or oral, are hereby expressly limited so that in no contingency or event whatsoever, whether by reason of acceleration of the maturity hereof or otherwise, shall control this Agreement the amount contracted for, charged or received by the Lender for the use, forbearance, or detention of the money loaned hereunder or otherwise, or for the payment or performance of any covenant or obligation contained herein or in any other Loan Documents evidencing, securing or pertaining to the Obligations evidenced hereby which may be legally deemed to be for the use, forbearance or detention of money, exceed the Maximum Legal Rate or the maximum amount which the Borrower and each Note:
any successors or assigns of the Borrower or any such person (aif any) No agreementsis obligated to pay and which the Lender is legally entitled to contract for, conditionscharge or collect under applicable state or federal law. If from any circumstances whatsoever fulfillment of any provision hereof or of such other Loan Documents, at the time performance of such provision shall be due, shall involve transcending the Maximum Legal Rate, then the obligation to be fulfilled shall be automatically reduced to such limit, and if from any such circumstance the Lender shall ever receive as interest or stipulations contained otherwise an amount in this Agreement excess of the Maximum Legal Rate or the maximum that can be legally collected, then such amount which would be excessive interest shall be applied to the reduction of the principal indebtedness hereof and any other amounts due with respect to the Obligations evidenced hereby or in any other Loan Document, or the occurrence of an Event of Default, or the exercise by the Lender of the right but not to accelerate the payment of interest and if such amount which would be excess interest exceeds the maturity of principal Obligations and all other non interest on indebtedness described above, then such additional amount shall be refunded to the Borrower. If any Noteexcess interest in such respect is provided for in this Agreement, or shall be adjudicated to exercise be so provided, or in any option whatsoever contained other Loan Document or otherwise in connection with this transaction, the provisions of this Section 9.14 shall govern and prevail and neither the Borrower nor any successors or assigns of the Borrower or any such person (if any) shall be obligated to pay the excess amount of such interest or any other excess sum paid for the use, forbearance, or detention of sums loaned pursuant hereto. In determining whether or not all sums paid or agreed to be paid by the Borrower for the use, forbearance or detention of the Obligations of the Borrower to the Lender, under any specific contingency, exceeds the Maximum Legal Rate or the maximum amount permitted by applicable law, the Borrower and the Lender shall to the maximum extent permitted under applicable law, (a) treat all Obligations as but a single extension of credit, (b) characterize any non-principal payment as an expense, fee or premium rather than as sums paid or agreed to be paid by the Borrower for the use, forbearance or detention of the Obligations of the Borrower to the Lender, (c) exclude voluntary prepayments and the effect thereof, and (d) amortize, prorate, allocate and spread in equal parts, the total amount of such sums paid or agreed to be paid by the Borrower for the use, forbearance or detention of the Obligations of the Borrower to the Lender throughout the entire contemplated term of the Obligations so that the interest rate is uniform through the entire term of the Obligations. In the event that any of the contract rates computed under this Agreement or any other Loan Document, or Document hereof would exceed the arising of any contingency whatsoever, shall entitle the Lender to collect, in any event, interest exceeding the maximum rate of nonusurious interest allowed from time to time by applicable state or federal laws as now or as may hereinafter be in effect (the "MAXIMUM LEGAL RATE") and in no event shall the Borrower be obligated to pay interest exceeding such Maximum Legal Rate, and all agreements, conditions or stipulations, if any, which may in any event or contingency whatsoever operate to bind, obligate or compel the Borrower to pay a rate of interest exceeding the Maximum Legal Rate shall be without binding force or effect, at law or in equity, to the extent only of the excess of interest over such Maximum Legal Rate. In the event any interest is charged in excess of the Maximum Legal Rate (the "EXCESS"), the Borrower acknowledges and stipulates that any such charge shall be the result of an accidental and bona fide error, and such
(b) Unless preempted by federal law, the rate of interest under this Agreement or such other Loan Agreement for any such period shall be limited to the Maximum Legal Rate, but any subsequent reductions in the applicable contract rate shall not reduce the rates of interest under this Agreement or such other Loan Document below the Maximum Legal Rate until the total amount of interest charged equals the amount of interest that would have been charged had the applicable contract rate been charged at all times. The Borrower and Lender hereby agree if, despite the provisions of Section 9.9 of this Agreement, Texas law is deemed to apply, that except for Section 346.004 thereof, the provisions of Chapter 346 of the Texas Finance Code (Vernon’s Texas Code Annotated), as amended from time to time in effect hereunder time, shall not exceed the "indicated rate ceiling" from time apply to time in effect under Chapter 1 this Agreement or any of the Texas Credit Code (Vernon's Texas Civil Statutes), Section (a)(1), Article 5069-1.04, as amended.
(c) other Loan Documents. The terms and provisions of this Section 9.14 shall be deemed to be incorporated into control and supersede every document or communication relating to other provision hereof, the Indebtedness which sets forth or prescribes any account, right or claims or alleged account, right or claim of the Lender with respect to the Borrower (or any other obligor in respect of the Indebtedness), whether or not any provision of this Section is referred to therein. All such documents and communications Loan Documents and all figures set forth therein shall, for the sole purpose of computing the extent of the obligations asserted by the Lender thereunder, be automatically recomputed by the other agreements between Borrower or any other obligor, and by any court considering the same, to give effect to the adjustments or credits required by this Section.
(d) If the applicable state or federal law is amended in the future to allow a greater rate of interest to be charged under this Agreement than is presently allowed by applicable state or federal law, then the limitation of interest hereunder shall be increased to the maximum rate of interest allowed by applicable state or federal law, as amended, which increase shall be effective hereunder on the effective date of such amendment, and all interest charges owing to the Lender by reason thereof shall be payable upon demand.Lender
Appears in 1 contract
Samples: Loan and Security Agreement (Charys Holding Co Inc)
Maximum Legal Rate. The following provisions shall control this Agreement and each Note:
(a) No agreements, conditions, provision or stipulations contained in this Agreement or in any other Loan Document, or the occurrence of an Event of Default, or the exercise by the Lender of the right to accelerate the payment of or the maturity of principal and interest on any Note, or to exercise any option whatsoever contained in this Agreement or any other Loan Document, or the arising of any contingency whatsoever, shall entitle the Lender to collect, in any event, interest exceeding the maximum rate of nonusurious interest allowed from time to time by applicable state or federal laws as now or as may hereinafter be in effect (the "MAXIMUM LEGAL RATE") and in no event shall the Borrower be obligated to pay interest exceeding such Maximum Legal Rate, and all agreements, conditions or stipulations, if any, which may in any event or contingency whatsoever operate to bind, obligate or compel the Borrower to pay a rate of interest exceeding the Maximum Legal Rate shall be without binding force or effect, at law or in equity, to the extent only of the excess of interest over such Maximum Legal Rate. In the event any interest is charged in excess of the Maximum Legal Rate (the "EXCESS"), the Borrower acknowledges and stipulates that any such charge shall be the result of an accidental and bona fide error, and suchsuch Excess shall be, first, applied to reduce the principal of any obligations due, and, second, returned to the Borrower, it being the intention of the parties hereto not to enter at any time into an usurious or otherwise illegal relationship. The parties hereto recognize that with fluctuations in the Contract Rate from time to time announced by the Lender such an unintentional result could inadvertently occur. By the execution of this Agreement, the Borrower covenants that (a) the credit or return of any Excess shall constitute the acceptance by the Borrower of such Excess, and (b) the Borrower shall not seek or pursue any other remedy, legal or equitable, against the Lender based, in whole or in part, upon the charging or receiving of any interest in excess of the Maximum Legal Rate. For the purpose of determining whether or not any Excess has been contracted for, charged or received by the Lender, all interest at any time contracted for, charged or received by the Lender in connection with the Borrower's obligations shall be amortized, prorated, allocated and spread during the entire term of this Agreement. If at any time the rate of interest payable hereunder shall be computed on the basis of the Maximum Legal Rate, any subsequent reduction in the Contract Rate shall not reduce such interest thereafter payable hereunder below the amount computed on the basis of the Maximum Legal Rate until the aggregate amount of such interest accrued and payable under this Agreement equals the total amount of interest which would have accrued if such interest had been at all times computed solely on the basis of the Contract Rate.
(b) Unless preempted by federal law, the rate of interest from time to time in effect hereunder shall not exceed the "indicated rate ceiling" from time to time in effect under Chapter 1 of the Texas Credit Code (Vernon's Texas Civil Statutes), Section (a)(1), Article 5069-1.04, as amended.
(c) The provisions of this Section shall be deemed to be incorporated into every document or communication relating to the Senior Indebtedness which sets forth or prescribes any account, right or claims or alleged account, right or claim of the Lender with respect to the Borrower (or any other obligor in respect of the Senior Indebtedness), whether or not any provision of this Section is referred to therein. All such documents and communications and all figures set forth therein shall, for the sole purpose of computing the extent of the obligations asserted by the Lender thereunder, be automatically recomputed by the Borrower or any other obligor, and by any court considering the same, to give effect to the adjustments or credits required by this Section.
(d) If the applicable state or federal law is amended in the future to allow a greater rate of interest to be charged under this Agreement than is presently allowed by applicable state or federal law, then the limitation of interest hereunder shall be increased to the maximum rate of interest allowed by applicable state or federal law, as amended, which increase shall be effective hereunder on the effective date of such amendment, and all interest charges owing to the Lender by reason thereof shall be payable upon demand.
(e) The provisions of Chapter 15 of the Texas Credit Code (Vernon's Texas Civil Statutes), Article 5069-15, as amended, are specifically declared by the parties hereto not to be applicable to this Agreement or any other Loan Document or to the transactions contemplated hereby or thereby.
Appears in 1 contract
Samples: Revolving Credit and Term Loan Agreement (Zimmerman Sign Co)
