Common use of Terms of the Subordinate Loan Clause in Contracts

Terms of the Subordinate Loan. The original principal amount of the Subordinate Note is $_______________. Interest on the Subordinate Note accrues monthly at the rate of ___________% per annum. The Subordinate Note is due and payable in full on ____________________, ________, ("Maturity"). The Maturity term of the Subordinate Note does not end before the maturity term of the Senior Note, unless the Subordinate Note is forgivable as set forth below and Borrower satisfies all requirements in the Subordinate Loan Documents to result in the Subordinate Note being eligible for forgiveness. The principal of the Subordinate Note will [be fully amortized at Maturity] [have a balloon principal payment of $_______________ due at Maturity]. {INSERT IF SUBORDINATE LOAN IS FORGIVABLE: [Subject to the terms of the Subordinate Loan Documents, the loan will be forgiven on INSERT DATE]}. The promissory note evidencing the Subordinate Note obligates Borrower to make payments as follows ________________, subject to Section 3(c) immediately below.

Terms of the Subordinate Loan. The original principal amount of the Subordinate Note is $_______________$ . Interest on the Subordinate Note accrues monthly at the rate of ___________% per annum. The Subordinate Note is due and payable in full on ____________________, ________, ("Maturity"). The Maturity term of the Subordinate Note does not end before the maturity term of the Senior Note, unless the Subordinate Note is forgivable as set forth below and Borrower satisfies all requirements in the Subordinate Loan Documents to result in the Subordinate Note being eligible for forgiveness. The principal of the Subordinate Note will [be fully amortized at Maturity] [have a balloon principal payment of $_______________ $ due at Maturity]. {INSERT IF SUBORDINATE LOAN IS FORGIVABLE: [Subject to the terms of the Subordinate Loan Documents, the loan will be forgiven on INSERT DATE]}. The promissory note evidencing the Subordinate Note obligates Borrower to make payments as follows ________________, subject to Section 3(c) immediately below.