AgdaPkt 2013-05-06 - Laserfiche WebLink

Browse Search

Exhibit A 6.2.C. - Page 13 City of Redwood City CONFIDENTIAL Page 7 Make-Whole Break Funding Fee Calculation If City elects to not go through with the Financing other than due to a Force Majeure Event (as defined below) or due to the occurrence of a Termination Event, City shall pay to Bank a break-funding fee equal to the Annual Yield Differential (as defined below) multiplied by the Percent Being Prepaid (as defined below), multiplied by the Average Remaining Outstanding Principal Amount (as defined below) multiplied by the number of days the Financing was to be outstanding (the "Maturity Date"), divided by 360. The "Annual Yield Differential" is the difference (but not less than zero) between the U.S. Treasury yield (from the Federal Reserve daily H.15 report) on the maturity closest to the final maturity of the note at time of rate lock, and the U.S Treasury yield (from the Federal Reserve daily H.15 report) on the maturity closest to the final maturity of the note at the date of notification of election to not enter into the Financing. The Average Remaining Outstanding Principal Amount of the loan is defined as the simple average of the original principal loan balance and the loan balance due at the maturity date. The Percent Being Prepaid shall be determined by dividing the principal amount being prepaid by the existing principal loan amount. If treasury rates are equal or higher, the customer will incur no charge. The Federal Reserve H.15 report for treasury rates can be accessed from the Fed's website currently <http://www.federalreserve.gov/releases/h15/current/default.htm>. Example: Loan amount at origination: $5.0 million Final maturity: 15 years Amount Remaining at Maturity: $0.0 15-year US Treasury Rate at time of rate lock 2.50% 15 days prior to closing and funding, the customer elects to not enter into the financing. 15-year Treasury rate at the time of notification is 2.45%. Prepayment Fee Calculation: Annual Yield Differential= 5 bps (2.50% - 2.45%) Percent Being Prepaid= 100% Average Remaining Outstanding Principal Amount= $2.5 million (average of existing $5.0 million and $0 at maturity) Days to Maturity/360 = 1521 ((15 x 365)/360) Break Funding Fee = .05% * 100% * $2.5 million * 15.21 = $19,010.42 "Force Majeure Event" means acts of God; acts of public enemies; orders of any kind of the government of the United States of America or the State of California or any political subdivision thereof, or any of their departments, agencies or officials; any outbreak of civil or military insurrections, riots or epidemics; landslides; lightning; earthquake; fire; hurricanes; tornadoes; floods; or any other cause or event not insurable or reasonably within the control of City which makes City unable to consummate the Financing or perform its obligations thereunder.