Ordinance 2737-03 - Laserfiche WebLink

r (b) 2004 Note. For the purpose of financing certain capital expenditures of the City following their approval by the City Council, the City shall issue and sell a promissory note to the Bank to evidence a revolving line of credit, to be designated as the "City of Everett, Washington, Limited Tax General Obligation Note, 2004 (Revolving Line of Credit-Capital)" (the "2004 Note") in the denomination of not to exceed $2,000,000. The 2004 Note shall be dated as of its Delivery Date, shall be fully registered as to both principal and interest and shall mature on the Maturity Date. No Drawing shall be permitted under the 2004 Note if the effect of such Drawing would be to permit the aggregate Outstanding Principal Balance of the 2004 Note to exceed $2,000,000. The 2004 Note shall bear interest (on unpaid principal) from the date of each Drawing thereunder until repaid at a fully floating variable per annum rate equal to 52% of the Prime Rate. (c) Calculation and Payment of Interest on Notes. Interest on the Notes shall be calculated on the basis of a year of 365/366 days and actual days elapsed. Interest shall be due and payable monthly on the first day of each month, commencing on February 1, 2004 (with respect to the 2003 Note) and commencing on the first day of the month following the initial Drawing under the 2004 Note, with respect to the 2004 Note, with final payment of all outstanding principal of and interest on the Notes due on their respective Maturity Dates. If any principal or interest of a Note is not paid when due, all outstanding principal of the defaulted Note shall commence to accrue interest, until repaid, at a fully floating variable per annum rate equal to the Prime Rate. Section 4. Procedures for Drawings. The Finance Director will notify the Bank prior to the Delivery Date of the 2004 Note of the dollar amount, if any, proposed to be drawn -5- P:\CMW\CMW634 03/12/08