Common use of Reduction in Interest Clause in Contracts

Reduction in Interest. It is the intention of the Borrower and the Holder to conform strictly to the applicable laws of usury. All agreements and transactions between the Holder and the Borrower, whether now existing or hereafter arising, whether contained herein or in any other instrument, 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, late payment, prepayment, demand for prepayment or otherwise, shall the amount contracted for, charged or received by the Holder from the Borrower for the use, forbearance, or detention of the principal indebtedness or interest hereof, which remains unpaid from time to time, exceed the Maximum Lawful Amount. Any interest payable hereunder or under any other instrument relating to the loan evidenced hereby that is in excess of the Maximum Lawful Amount, shall, in the event of acceleration of maturity, late payment, prepayment, demand or otherwise, be applied to a reduction of the principal indebtedness hereof and not to the payment of interest, or if such excessive interest exceeds the unpaid balance of such principal, such excess shall be refunded to the Borrower. To the extent not prohibited by law, determination of the Maximum Lawful Amount of interest shall at all times be made by amortizing, prorating, allocating and spreading all interest at any time contracted for, charged or received from the Borrower in connection with the loan in equal parts during the period of the full term of the loan evidenced hereby until repayment in full of the principal (including the period of any renewal or extension hereof), so that the actual rate of interest on account of such indebtedness does not exceed the Maximum Lawful Amount. As used herein, the term “Maximum Lawful Amount” means the maximum amount of non-usurious interest, permitted with respect to the indebtedness evidenced by this Note from time to time by applicable law after taking into account any and all fees, payments, and other charges that constitute interest under applicable law. Use of the term Maximum Lawful Amount shall not be deemed to imply or affirm that there is any Maximum Lawful Amount applicable to this Note.

Reduction in Interest. It is the intention intent of Bank and Borrower in the execution of this Note and all other instruments now or hereafter securing this Note to contract in strict compliance with applicable usury law. In furtherance thereof, Bank and Borrower stipulate and agree that none of the Borrower terms and the Holder to conform strictly to the applicable laws of usury. All agreements and transactions between the Holder and the Borrowerprovisions contained in this Note, whether now existing or hereafter arising, whether contained herein or in any other instrument, and whether written or oral, are hereby expressly limited so that instrument executed in no contingency or event whatsoever, whether by reason of acceleration of the maturity hereof, late payment, prepayment, demand for prepayment or otherwiseconnection herewith, shall the amount contracted for, charged or received by the Holder from the Borrower ever be construed to create a contract to pay for the use, forbearance, forbearance or detention of the principal indebtedness or money, interest hereof, which remains unpaid from time to time, exceed the Maximum Lawful Amount. Any interest payable hereunder or under any other instrument relating to the loan evidenced hereby that is at a rate in excess of the Maximum Lawful AmountRate; neither Borrower nor any guarantors, shall, in the event of acceleration of maturity, late payment, prepayment, demand endorsers or otherwise, be applied to a reduction of the principal indebtedness hereof and not to the other parties now or hereafter becoming liable for payment of interest, this Note shall ever be obligated or if such excessive required to pay interest exceeds the unpaid balance of such principal, such on this Note at a rate in excess shall be refunded to the Borrower. To the extent not prohibited by law, determination of the Maximum Lawful Amount Rate that may be lawfully charged under applicable law, and the provisions of this paragraph shall control over all other provisions of this Note and any other instruments now or hereafter executed in connection herewith which may be in apparent conflict herewith. Bank, including each holder of this Note, expressly disavows any intention to charge or collect excessive unearned interest or finance charges in the event the maturity of this Note is accelerated. If the maturity of this Note shall be accelerated for any reason or if the principal of this Note is paid prior to the end of the term of this Note, and as a result thereof the interest received for the actual period of existence of the Loan exceeds the amount of interest shall that would have accrued at all times be made by amortizing, prorating, allocating and spreading all interest at any time contracted for, charged or received from the Borrower in connection with the loan in equal parts during the period of the full term of the loan evidenced hereby until repayment in full of the principal (including the period of any renewal or extension hereof), so that the actual rate of interest on account of such indebtedness does not exceed the Maximum Lawful Amount. As used hereinRate, Bank or other holder of this Note shall, at its option, either refund to Borrower the term “Maximum Lawful Amount” means the maximum amount of non-usurious such excess or credit the amount of such excess against the Principal Amount and thereby shall render inapplicable any and all penalties of any kind provided by applicable law as a result of such excess interest. In the event that Bank or any other holder of this Note shall contract for, charge or receive any amounts and/or any other thing of value which are determined to constitute interest which would increase the effective interest rate on this Note to a rate in excess of that permitted with respect to be charged by applicable law, all such sums determined to constitute interest in excess of the indebtedness amount of interest at the lawful rate shall be, upon such determination, at the option of Bank or other holder of this Note, either immediately returned to Borrower or credited against the Principal Amount, in which event any and all penalties of any kind under applicable law as a result of such excess interest shall be inapplicable. By execution of this Note, Borrower acknowledges that it believes the Loan evidenced by this Note from time to time by applicable law after taking into account be non-usurious and agrees that if, at any time, Borrower should have reason to believe that the Loan is in fact usurious, it will give Bank or other holder of this Note notice of such condition and all fees, payments, and Borrower agrees that Bank or other charges that constitute interest under holder shall have ninety (90) days in which to make appropriate refund or other adjustment in order to correct such condition if in fact such exists. The term “applicable law. Use ” as used in this Note shall mean the laws of the term Maximum Lawful Amount shall not State of Texas or the laws of the United States, whichever laws allow the greater rate of interest, as such laws now exist or may be deemed to imply changed or affirm that there is any Maximum Lawful Amount applicable to this Noteamended or come into effect in the future.

Reduction in Interest. It is the intention of the Borrower and the Holder Lender to conform strictly to the applicable laws of usury. All agreements and transactions between the Holder Borrower and the BorrowerLender, whether now existing or hereafter arising, whether contained herein or in any other instrument, 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, late payment, prepayment, demand for prepayment or otherwise, shall the amount contracted for, charged or received by the Holder Lender from the Borrower for the use, forbearance, forbearance or detention of the principal indebtedness or interest hereof, which remains unpaid from time to time, exceed the Maximum Lawful Amount. Any interest payable hereunder or under any other instrument relating to the loan evidenced hereby Loan that is in excess of the Maximum Lawful Amount, shallshall be applied, in the event of acceleration of maturity, late paymentprepayment, demand for prepayment or otherwise, automatically, as of the date of such acceleration, prepayment, demand or otherwise, be applied to a reduction of the principal indebtedness hereof and not to the payment of interest, or if such excessive interest exceeds the unpaid balance of such principal, such excess shall be refunded to the Borrower. To the extent not prohibited by law, determination of the Maximum Lawful Amount legal maximum rate of interest shall at all times be made by amortizing, prorating, allocating and spreading all interest at any time contracted for, charged or received from the Borrower in connection with the loan Loan in equal parts during the period of the full term of the loan evidenced hereby Loan until repayment in full of the principal (including the period of any renewal or extension hereof), so that the actual rate of interest on account of such indebtedness does not exceed the Maximum Lawful Amount. As used herein, the term “Maximum Lawful Amount” means the maximum amount of non-usurious interest, permitted with respect to the indebtedness evidenced by this Note from time to time by applicable law after taking into account any and all fees, payments, and other charges that constitute interest under applicable law. Use of the term Maximum Lawful Amount shall not be deemed to imply or affirm that there is any Maximum Lawful Amount applicable to this NoteRate.

Reduction in Interest. It is the intention of the Borrower and the Holder Lender to conform strictly to the applicable laws of usury. All agreements and transactions between the Holder Borrower and the BorrowerLender, whether now existing or hereafter arising, whether contained herein or in any other instrument, 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, late payment, prepayment, demand for prepayment or otherwise, shall the amount contracted for, charged or received by the Holder Lender from the Borrower for the use, forbearance, or detention of the principal indebtedness or interest hereof, which remains unpaid from time to time, exceed the Maximum Lawful Amount. Any interest payable hereunder or under any other instrument relating to the loan evidenced hereby Loan that is in excess of the Maximum Lawful Amount, shall, in the event of acceleration of maturity, late payment, prepayment, demand or otherwise, be applied to a reduction of the principal indebtedness hereof and not to the payment of interest, or if such excessive interest exceeds the unpaid balance of such principal, such excess shall be refunded to the Borrower. To the extent not prohibited by law, determination of the Maximum Lawful Amount of interest shall at all times be made by amortizing, prorating, allocating and spreading all interest at any time contracted for, charged or received from the Borrower in connection with the loan Loan in equal parts during the period of the full term of the loan evidenced hereby Loan until repayment in full of the principal (including the period of any renewal or extension hereof), so that the actual rate of interest on account of such indebtedness does not exceed the Maximum Lawful Amount. As used herein, the term “Maximum Lawful Amount” means the maximum amount of non-usurious interest, permitted with respect to the indebtedness evidenced by this Note from time to time by applicable law after taking into account any and all fees, payments, and other charges that constitute interest under applicable law. Use of the term Maximum Lawful Amount shall not be deemed to imply or affirm that there is any Maximum Lawful Amount applicable to this Note.