No. S0040D
CoBANK, ACB
LINE OF CREDIT AMENDMENT
THIS AMENDMENT is entered into as of the 13th day of September 2000, by
and between CoBANK, ACB ("CoBank") and CHUGACH ELECTRIC ASSOCIATION, INC. (the
"Borrower").
WHEREAS, CoBank and the Borrower desire to amend Line of Credit
Agreement No. S0040 dated May 5, 1993 (such agreement, as may have been
previously amended, shall hereinafter be referred to as the "Agreement");
NOW, THEREFORE, for valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties agree as follows:
1. Section 4 of the Agreement is amended and restated to read as follows:
SECTION 4.
(A) Interest. The Borrower agrees to pay interest on the unpaid
principal balance of each loan in accordance with one or more of the following
interest rate options, as selected by the Borrower:
(1) Variable Rate Option. At a rate per annum equal at all times to the
rate of interest established by CoBank on the first Business Day of each week.
The rate established by CoBank may not exceed CoBank's "National Variable Rate"
(as hereinafter defined) on that day and shall be effective until the first
Business Day of the next week. Each change in the rate shall be applicable to
all balances subject to this option and information about the then current rate
shall be made available upon telephonic request. For purposes hereof, the
"National Variable Rate" shall mean the rate of interest established by CoBank
from time to time as its National Variable Rate, which Rate is intended by
CoBank to be a reference rate and not its lowest rate. The National Variable
Rate will change on the date established by CoBank as the effective date of any
change therein and CoBank agrees to notify the Borrower promptly after any such
change.
(2) Fixed Rate Option. At a fixed rate per annum to be quoted
by CoBank in its sole discretion in each instance. Under this option, rates may
be fixed on such balances and for such periods as may be agreeable to CoBank in
its sole discretion in each instance.
The Borrower shall select the applicable rate option at the time it requests a
loan hereunder and may, on any Business Day, elect to convert balances bearing
interest at the variable rate option to the fixed rate option. In addition,
prior to the expiration of any fixed rate period, the Borrower may, subject to
Section 12(A) of the MLA, repay any fixed rate balance, convert any fixed rate
balance to the variable rate option, or re-fix the rate at a new rate to be
quoted by CoBank. Upon the expiration of any fixed rate period, the Borrower
may, subject to the terms hereof, re-fix the rate or convert the rate to the
variable rate option. In the absence of any such election, interest shall
automatically accrue at the variable rate option. All elections provided for
herein shall be made telephonically or in writing and must be received by 12:00
Noon Borrower's local time. Interest shall be calculated on the actual number of
days each loan is outstanding on the basis of a year consisting of 360 days and
shall be payable monthly in arrears by the 20th day of the following month.
(B) Default Rate. Notwithstanding the foregoing, (i) if prior to the
maturity of the loans the Borrower fails to make any payment to CoBank when due,
then at CoBank's option in each instance, such payment shall bear interest from
the date due to the date paid at 4% per annum in excess of the rate(s) of
interest that would otherwise be in effect on that loan under the terms of this
Agreement; and (ii) after the maturity of any loan (whether as a result of
acceleration or otherwise), the unpaid principal balance of such loan (including
without limitation, principal, interest, fees and expenses) shall automatically
bear interest at 4% per annum in excess of the rate(s) of interest that would
otherwise be in effect on that loan under the terms of the Agreement. All
interest provided for herein shall be payable on demand and shall be calculated
on the basis of a year consisting of 360 days.
(C) Broken Funding Surcharge. The Borrower agrees to pay to CoBank a
surcharge in the amount set forth below in the event the Borrower: (1) repays
any fixed rate balance prior to the last day of its fixed rate period (whether
such payment is made voluntarily or by reason of acceleration or otherwise); (2)
fails to borrow any fixed rate balance on the date scheduled therefor; or (3)
converts any fixed rate balance to another fixed rate or to the variable rate
option prior to the last day of the fixed rate period applicable to such
balance. The surcharge shall be in an amount equal to the sum of: (a) the
present value of any funding losses imputed by CoBank to have been incurred as a
result of such payment, conversion or failure; plus (b) a yield of 1/2 of 1
percent of the amount prepaid, converted or not borrowed. Such surcharge shall
be calculated in accordance with methodology established by CoBank, a copy of
which will be made available upon request.
2. To the extent not inconsistent herewith, all other terms and conditions
of the Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have caused this Amendment to be
executed by their duly authorized officers as of the date shown above.
CoBANK, ACB CHUGACH ELECTRIC ASSOCIATION, INC.
By: /s/Xxxxxx Xxxxxxxx By: /s/Xxxxxx X. Xxxxxxxxx
Title: Asst. Corporate Secretary Title: General Manager
