Preview
FILED: KINGS COUNTY CLERK 03/14/2024 09:25 AM INDEX NO. 507486/2024
NYSCEF DOC. NO. 4 RECEIVED NYSCEF: 03/14/2024
Schedule C
FILED: KINGS COUNTY CLERK 03/14/2024 09:25 AM INDEX NO. 507486/2024
NYSCEF DOC. NO. 4 RECEIVED NYSCEF: 03/14/2024
PROMISSORY NOTE
$530,000.00
Effective as of September 29, 2022
FOR VALUE RECEIVED, HI-RITE BUILDERS INC, a New York S Corporation
having a registered office and an address for purposes of notices and legal process at
2852 West 31st Street, Brooklyn, New York 11224 (the "Borrower"), promises to pay
to the order of Sharestates Investments, LLC ISAOA/ATIMA, 45 North Station Plaza,
Suite #400, Great Neck, NY 11021 (the "Lender"), or at such other place as may be
designated in writing by the holder of this Note, the principal sum of FIVE HUNDRED
THIRTY THOUSAND and 00/100 DOLLARS ($530,000.00) in lawful money of the United
States of America, together with interest thereon to be computed from the date hereof at
the Applicable Interest Rate or Involuntary Rate (as applicable), and to be paid in
accordance with the terms of this Note.
1. BORROWER'S PROMISE TO PAY
In return for a loan made by Lender to Borrower secured by that certain Mortgage (as
hereinafter defined), Borrower promises to pay U.S. $530,000.00 (hereinafter, the
"Principal"), plus interest and other sums due, to the order of Lender, in accordance with
the terms of this Note. Borrower will make all payments under this Note in the form of
check or federal funds transfer to an account designated by Lender or in such other
manner as may be designated by Lender. Borrower understands that Lender may transfer
this Note. Lender or anyone who takes this Note by transfer and who is entitled to receive
payments under this Note is hereinafter called the "Note Holder".
2. INTEREST
Absent an Event of Default (as hereinafter defined), interest under this Note shall be
Rate"
due and payable at the "Applicable Interest (as hereinafter defined) for the period
from the date hereof through the Maturity Date, as the same may be extended, or through
Rate"
the earlier repayment of the Loan in Full. The term "Applicable Interest as used
herein, shall mean the interest rate equal to eleven and seventy four percent (11.74%)
per annum. Interest for any month or fractional part thereof shall be calculated on the
basis of a 30-day month and 360-day year, and shall be due and payable hereunder
monthly. Interest on the disbursed amount shall begin to accrue from the date
herewith.
The Interest Rate is predicated upon enrollment and continued use of Lender's
Autopay Withdrawal program. If Borrower does not enroll in Autopay, or enrolls and
subsequently cancels and/or fails to maintain sufficient funds in the bank account for
automatic debts, the rate will be adjusted upward by 35 Basis Points ("BPS").
3. PAYMENT TERMS
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3.1. Borrower agrees to pay sums under this Note in installments as follows:
3.1.a) On the date hereof in the sum of THREE HUNDRED THIRTY-TWO and
63/100 DOLLARS ($332.63) representing interest only from the date of this Note through
September 30, 2022.
3.1.b) Commencing on November 01, 2022, and on the first day of each month
thereafter through and until October 01, 2023 (the "Maturity Date"), Borrower shall pay
to Lender monthly installments of interest only due in accordance with the terms of this
Note. Initial Monthly payments will be $4,989.50.
3.1.c) Ali accrued and unpaid interest and the unpaid principal balance hereof are
due and payable on the earlier to occur of (i) the Maturity Date, or (ii) the date on which
the Indebtedness becomes immediately due and payable hereunder.
4. DISBURSEMENT
This Promissory Note is to be disbursed over four (4) disbursements, with the first
disbursement occurring on the date herewith in the amount of $510,000.00. Subsequent
disbursements shall be made upon request by Borrower to Lender, which are to be made
in 4 disbursements, after Borrower completes proposed renovations in accordance with
plans provided to Lender by Borrower prior to the date hereof, AND upon visual inspection
and confirmation by the Lender of said renovations. An inspection fee of $350.00, or such
greater amount as may be charged by an inspection company, shall be payable by
Borrower to Lender at the time of each inspection, The Borrower must expend $31,100.00
of his own funds, NOT provided by Lender through this Promissory Note, prior to
requesting the second disbursement. Notwithstanding anything in this Promissory Note
to the contrary, no subsequent disbursements will be made unless documented verifiable
invoices and receipts AND/OR Lien Waivers are provided by Borrower to Lender
documenting the use of all funds, both those provided to Borrower by this Promissory
Note, and otherwise. No subsequent disbursements shall be made by Lender in the event
any liens (mechanics liens, mortgages, or otherwise) are filed against the subject
premises (Lender maintains the right to verify the premises are free of such liens at any
time).
5. MORTGAGE
This Note is a secured by (a) a mortgage lien in the principal sum of FIVE HUNDRED
THIRTY THOUSAND and 00/100 DOLLARS ($530,000.00) evidenced by a Mortgage
and Security Agreement of even date herewith given by Borrower to Lender encumbering
that certain premises located in the County of Kings and State of New York, commonly
known by the address 222 McKinley Avenue, Brooklyn, New York 11208 (hereinafter
referred to as the "Mortgage"), and (b) certain other instruments and agreements dated
of even date herewith or executed pursuant to this transaction from time to time by
Borrower, principal, surety, Guarantor, member, endorser or any other parties for the
benefit of Lender (said documents and agreements and all other documents and
FILED: KINGS COUNTY CLERK 03/14/2024 09:25 AM INDEX NO. 507486/2024
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agreements evidencing or securing the Indebtedness, are hereinafter referred to,
collectively as the "Loan Documents"). AII of the terms, covenants, conditions and
agreements contained in the Mortgage are hereby incorporated herein and made a part
hereof.
6. APPLICATION OF PAYMENTS
6.1. Each payment made by Borrower, at the discretion of Lender, shall be applied
as follows:
6.1.a) First, to any costs of collection hereunder;
6.1.b) Then, to any unpaid costs or balances of advances (excluding the original
advance of the Principal) made by Lender in connection with the Mortgage and/or any of
the Loan Documents and/or this Note and to any other amounts whidh may be overdue
on account of any of the several terms, provisions, conditions or covenants contained in
this Note, the Mortgage and the Loan Documents;
6.1.c) Then, to late charges and any other fees or charges due hereunder if any;
6.1.d) Then, to interest then due and payable hereunder (at the involuntary Rate,
if applicable);
6.1.e) And the remainder to the Principal balance hereof.
6.2. Monthly installments of interest shall be paid when due, regardless of the prior
acceptance by Lender of payments in excess of the regular monthly installment of
interest.
6.3. The designation or allocation by Borrower of the disposition or allocation of any
payments made will not be binding upon Lender which may allocate any and all such
payments to interest, principal and other fees and charges due hereunder or to any one
or more of them, in such amount, priorities and proportions as Lender may determine in
its sole discretion in accordance with the terms hereof.
7. DEFAULT AND ACCELERATION
7.1. It is hereby expressly agreed that (A) the whole of the principal sum of this Note,
(B) interest, default interest, late charges, fees and other sums, as provided in this Note,
(C) all other monies agreed or provided to be paid by Borrower in this Note, the Mortgage
or the Loan Documents, (D) all sums advanced pursuant to the Mortgage and/or the Loan
Documents, and (E) all sums advanced and costs and expenses incurred by Lender in
connection with the Indebtedness or any part thereof, any renewal, extension, or change
of or substitution for the Indebtedness or any part thereof, or the acquisition or perfection
of the security granted pursuant to the Mortgage and the other Loan Documents, whether
made or incurred at the request of Borrower or Lender (the sums referred to in (A) through
FILED: KINGS COUNTY CLERK 03/14/2024 09:25 AM INDEX NO. 507486/2024
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(E) above shall collectively be referred to as the "Indebtedness") shall, WITHOUT
NOTICE (unless otherwise provided herein), become immediately due and payable at the
option of the Note Holder upon the happening of any of the following events (each, an
"Event of Default"):
7.1.a) Borrower fails to pay any amount due to Lender under this Note within ten
(10) days of when due;
7.1.b) Borrower fails to keep, observe or perform any other promise, condition or
agreement contained in this Note, the Mortgage, the Loan Documents or any other
documents described herein or delivered in connection herewith or is otherwise in default
under the terms, covenants and conditions of this Note, the Mortgage and the Loan
Documents, and such failure or default is not remedied within fifteen (15) days after notice
to Borrower thereof, provided, however, that if such failure or default is not capable of
being cured or remedied within said fifteen (15) day period, then if Borrower fails to
promptly commence to cure the same and thereafter diligently prosecute such cure to
completion but in any event within thirty (30) days after notice thereof;
7.1.c) There is a material misstatement in any certificate and/or certification
delivered in connection with this Note, the Mortgage, and other Loan Documents, or any
representation, disclosure, warranty, statement, financial information, application and/or
other instrument, record, documentation or paper made or furnished by or on behalf of
Borrower in connection with this Note shall be materially misleading, untrue or incorrect;
7.1.d) A receiver, liquidator or trustee shall be appointed for Borrower or for any of
its property, an assignment shall be made for the benefit of creditors, Borrower or a
member of Borrower shall be adjudicated as bankrupt or insolvent, or any petition for
bankruptcy, reorganization or arrangement pursuant to the Bankruptcy Reform Act of
1978 codified as 11 U.S.C. §101 et seq., and the regulations issued thereunder, both as
hereafter modified from time to time (the "Federal Bankruptcy Code"), or any similar
federal or state statute, shall be filed by or against Borrower, unless such appointment,
assignment, adjudication or petition was involuntary, in which event only if the same is
not discharged, stayed or dismissed within thirty (30) days;
7.1.e) A judgment for the payment of money shall be rendered against Borrower
and Borrower shall not discharge the same or cause it to be discharged within fifteen (15)
days from the entry thereof, or shall not thereafter secure a stay of execution pending
such appeal;
7.1.f) Borrower or a member of Borrower shall have concealed, removed and/or
permitted to be concealed or removed any substantial part of its property and/or assets
with the intent to hinder, or defraud Lender of any of its property and/or assets which
delay
be fraudulent under federal or state bankruptcy, fraudulent conveyance or similar
may any
law now or hereafter enacted, or if Borrower shall have made any transfer of any of its
property and/or assets to or for the benefit of a creditor at a time when other creditors
situated have not been paid, or if Borrower shall have suffered or permitted to
similarly
FILED: KINGS COUNTY CLERK 03/14/2024 09:25 AM INDEX NO. 507486/2024
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be suffered, while insolvent, any creditor to obtain a lien upon any of its property and/or
assets through legal proceedings or distraint which is not vacated within thirty (30) days
from the date of entry thereof;
7.1.g) Borrower or any Guarantor defaults under any other note, instrument,
agreement, contract, pledge, mortgage or encumbrance evidencing and/or securing the
Indebtedness or any other indebtedness of Borrower, and such event or occurrence is
not remedied or cured within thirty (30) days after written notice thereof or an "event of
default"
(as defined in such other note, instrument, agreement, contract, pledge,
mortgage or encumbrance) shall have occurred; or
7.1.h) If, without the written consent of Lender, the interest of any member of
Borrower is assigned or transferred, or the manager withdraws, resigns or is replaced,
unless due to the death or disability of the manager.
7,1.i) Any of the events enumerated in this Section with respect to any Guarantor
or any of its property shall have occurred;
7.2. After the occurrence of an Event of Default, Lender may accept any payments
from Borrower without prejudice to the rights and remedies of Lender provided herein or
in the Mortgage or the Loan Documents.
8. DEFAULT INTEREST/LATE CHARGES
8.1. From and after the occurrence of an Event of Default, regardless of whether or
not there has been a notice of default issued by the Note Holder, interest shall accrue on
the outstanding Indebtedness, and shall be payable, at a rate equal to 23.99% per annum
(the "Involuntary Rate"). In addition, the Involuntary Rate shall remain in effect during
any period of default even upon the acceleration of the indebtedness evidence by this
Note. The Involuntary Rate shall be in effect at all times after the maturity of the
Indebtedness (whether on the Maturity Date, by acceleration or otherwise). Upon
acceleration or maturity, the Involuntary Rate shall remain in effect until all sums due
under this Note, the Mortgage and the Loan Documents shall have been paid in full. This
clause, however, shall not be construed as an agreement or privilege to extend the date
of the payment of the Indebtedness, or as a waiver of any other right or remedy accruing
to Lender by reason of the occurrence of any Event of Default.
8.2. Except for any payment of the Indebtedness after acceleration, if any payment
(or part thereof) provided for herein shall not be made when due, a late charge of six
($0.06) cents for each dollar so overdue shall become immediately due and payable to
the Note Holder as liquidated damages for failure to make prompt payment and the same
shall be secured the Mortgage. This fee is not a penalty but a fee reasonably calculated
by
to reimburse the Note Holder for administrative and staff time. Such charge shall be
payable in any event no later than the due date of the next subsequent installment or, at
the option of Note be deducted from deposits held Lender as
Holder, may any by
additional for this Note. herein is intended to or shall extend the due
security Nothing
FILED: KINGS COUNTY CLERK 03/14/2024 09:25 AM INDEX NO. 507486/2024
NYSCEF DOC. NO. 4 RECEIVED NYSCEF: 03/14/2024
dates set forth for payments under this Note. Such late fee may be charged on any
subsequent delinquent payment.
8.3. Should the Indebtedness or any part thereof be collected at law or in equity, or
in bankruptcy, receivership or any other court proceeding (whether at the trial or appellate
level),
Preview
FILED: KINGS COUNTY CLERK 03/14/2024 09:25 AM INDEX NO. 507486/2024 NYSCEF DOC. NO. 4 RECEIVED NYSCEF: 03/14/2024 Schedule C FILED: KINGS COUNTY CLERK 03/14/2024 09:25 AM INDEX NO. 507486/2024 NYSCEF DOC. NO. 4 RECEIVED NYSCEF: 03/14/2024 PROMISSORY NOTE $530,000.00 Effective as of September 29, 2022 FOR VALUE RECEIVED, HI-RITE BUILDERS INC, a New York S Corporation having a registered office and an address for purposes of notices and legal process at 2852 West 31st Street, Brooklyn, New York 11224 (the "Borrower"), promises to pay to the order of Sharestates Investments, LLC ISAOA/ATIMA, 45 North Station Plaza, Suite #400, Great Neck, NY 11021 (the "Lender"), or at such other place as may be designated in writing by the holder of this Note, the principal sum of FIVE HUNDRED THIRTY THOUSAND and 00/100 DOLLARS ($530,000.00) in lawful money of the United States of America, together with interest thereon to be computed from the date hereof at the Applicable Interest Rate or Involuntary Rate (as applicable), and to be paid in accordance with the terms of this Note. 1. BORROWER'S PROMISE TO PAY In return for a loan made by Lender to Borrower secured by that certain Mortgage (as hereinafter defined), Borrower promises to pay U.S. $530,000.00 (hereinafter, the "Principal"), plus interest and other sums due, to the order of Lender, in accordance with the terms of this Note. Borrower will make all payments under this Note in the form of check or federal funds transfer to an account designated by Lender or in such other manner as may be designated by Lender. Borrower understands that Lender may transfer this Note. Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note is hereinafter called the "Note Holder". 2. INTEREST Absent an Event of Default (as hereinafter defined), interest under this Note shall be Rate" due and payable at the "Applicable Interest (as hereinafter defined) for the period from the date hereof through the Maturity Date, as the same may be extended, or through Rate" the earlier repayment of the Loan in Full. The term "Applicable Interest as used herein, shall mean the interest rate equal to eleven and seventy four percent (11.74%) per annum. Interest for any month or fractional part thereof shall be calculated on the basis of a 30-day month and 360-day year, and shall be due and payable hereunder monthly. Interest on the disbursed amount shall begin to accrue from the date herewith. The Interest Rate is predicated upon enrollment and continued use of Lender's Autopay Withdrawal program. If Borrower does not enroll in Autopay, or enrolls and subsequently cancels and/or fails to maintain sufficient funds in the bank account for automatic debts, the rate will be adjusted upward by 35 Basis Points ("BPS"). 3. PAYMENT TERMS FILED: KINGS COUNTY CLERK 03/14/2024 09:25 AM INDEX NO. 507486/2024 NYSCEF DOC. NO. 4 RECEIVED NYSCEF: 03/14/2024 3.1. Borrower agrees to pay sums under this Note in installments as follows: 3.1.a) On the date hereof in the sum of THREE HUNDRED THIRTY-TWO and 63/100 DOLLARS ($332.63) representing interest only from the date of this Note through September 30, 2022. 3.1.b) Commencing on November 01, 2022, and on the first day of each month thereafter through and until October 01, 2023 (the "Maturity Date"), Borrower shall pay to Lender monthly installments of interest only due in accordance with the terms of this Note. Initial Monthly payments will be $4,989.50. 3.1.c) Ali accrued and unpaid interest and the unpaid principal balance hereof are due and payable on the earlier to occur of (i) the Maturity Date, or (ii) the date on which the Indebtedness becomes immediately due and payable hereunder. 4. DISBURSEMENT This Promissory Note is to be disbursed over four (4) disbursements, with the first disbursement occurring on the date herewith in the amount of $510,000.00. Subsequent disbursements shall be made upon request by Borrower to Lender, which are to be made in 4 disbursements, after Borrower completes proposed renovations in accordance with plans provided to Lender by Borrower prior to the date hereof, AND upon visual inspection and confirmation by the Lender of said renovations. An inspection fee of $350.00, or such greater amount as may be charged by an inspection company, shall be payable by Borrower to Lender at the time of each inspection, The Borrower must expend $31,100.00 of his own funds, NOT provided by Lender through this Promissory Note, prior to requesting the second disbursement. Notwithstanding anything in this Promissory Note to the contrary, no subsequent disbursements will be made unless documented verifiable invoices and receipts AND/OR Lien Waivers are provided by Borrower to Lender documenting the use of all funds, both those provided to Borrower by this Promissory Note, and otherwise. No subsequent disbursements shall be made by Lender in the event any liens (mechanics liens, mortgages, or otherwise) are filed against the subject premises (Lender maintains the right to verify the premises are free of such liens at any time). 5. MORTGAGE This Note is a secured by (a) a mortgage lien in the principal sum of FIVE HUNDRED THIRTY THOUSAND and 00/100 DOLLARS ($530,000.00) evidenced by a Mortgage and Security Agreement of even date herewith given by Borrower to Lender encumbering that certain premises located in the County of Kings and State of New York, commonly known by the address 222 McKinley Avenue, Brooklyn, New York 11208 (hereinafter referred to as the "Mortgage"), and (b) certain other instruments and agreements dated of even date herewith or executed pursuant to this transaction from time to time by Borrower, principal, surety, Guarantor, member, endorser or any other parties for the benefit of Lender (said documents and agreements and all other documents and FILED: KINGS COUNTY CLERK 03/14/2024 09:25 AM INDEX NO. 507486/2024 NYSCEF DOC. NO. 4 RECEIVED NYSCEF: 03/14/2024 agreements evidencing or securing the Indebtedness, are hereinafter referred to, collectively as the "Loan Documents"). AII of the terms, covenants, conditions and agreements contained in the Mortgage are hereby incorporated herein and made a part hereof. 6. APPLICATION OF PAYMENTS 6.1. Each payment made by Borrower, at the discretion of Lender, shall be applied as follows: 6.1.a) First, to any costs of collection hereunder; 6.1.b) Then, to any unpaid costs or balances of advances (excluding the original advance of the Principal) made by Lender in connection with the Mortgage and/or any of the Loan Documents and/or this Note and to any other amounts whidh may be overdue on account of any of the several terms, provisions, conditions or covenants contained in this Note, the Mortgage and the Loan Documents; 6.1.c) Then, to late charges and any other fees or charges due hereunder if any; 6.1.d) Then, to interest then due and payable hereunder (at the involuntary Rate, if applicable); 6.1.e) And the remainder to the Principal balance hereof. 6.2. Monthly installments of interest shall be paid when due, regardless of the prior acceptance by Lender of payments in excess of the regular monthly installment of interest. 6.3. The designation or allocation by Borrower of the disposition or allocation of any payments made will not be binding upon Lender which may allocate any and all such payments to interest, principal and other fees and charges due hereunder or to any one or more of them, in such amount, priorities and proportions as Lender may determine in its sole discretion in accordance with the terms hereof. 7. DEFAULT AND ACCELERATION 7.1. It is hereby expressly agreed that (A) the whole of the principal sum of this Note, (B) interest, default interest, late charges, fees and other sums, as provided in this Note, (C) all other monies agreed or provided to be paid by Borrower in this Note, the Mortgage or the Loan Documents, (D) all sums advanced pursuant to the Mortgage and/or the Loan Documents, and (E) all sums advanced and costs and expenses incurred by Lender in connection with the Indebtedness or any part thereof, any renewal, extension, or change of or substitution for the Indebtedness or any part thereof, or the acquisition or perfection of the security granted pursuant to the Mortgage and the other Loan Documents, whether made or incurred at the request of Borrower or Lender (the sums referred to in (A) through FILED: KINGS COUNTY CLERK 03/14/2024 09:25 AM INDEX NO. 507486/2024 NYSCEF DOC. NO. 4 RECEIVED NYSCEF: 03/14/2024 (E) above shall collectively be referred to as the "Indebtedness") shall, WITHOUT NOTICE (unless otherwise provided herein), become immediately due and payable at the option of the Note Holder upon the happening of any of the following events (each, an "Event of Default"): 7.1.a) Borrower fails to pay any amount due to Lender under this Note within ten (10) days of when due; 7.1.b) Borrower fails to keep, observe or perform any other promise, condition or agreement contained in this Note, the Mortgage, the Loan Documents or any other documents described herein or delivered in connection herewith or is otherwise in default under the terms, covenants and conditions of this Note, the Mortgage and the Loan Documents, and such failure or default is not remedied within fifteen (15) days after notice to Borrower thereof, provided, however, that if such failure or default is not capable of being cured or remedied within said fifteen (15) day period, then if Borrower fails to promptly commence to cure the same and thereafter diligently prosecute such cure to completion but in any event within thirty (30) days after notice thereof; 7.1.c) There is a material misstatement in any certificate and/or certification delivered in connection with this Note, the Mortgage, and other Loan Documents, or any representation, disclosure, warranty, statement, financial information, application and/or other instrument, record, documentation or paper made or furnished by or on behalf of Borrower in connection with this Note shall be materially misleading, untrue or incorrect; 7.1.d) A receiver, liquidator or trustee shall be appointed for Borrower or for any of its property, an assignment shall be made for the benefit of creditors, Borrower or a member of Borrower shall be adjudicated as bankrupt or insolvent, or any petition for bankruptcy, reorganization or arrangement pursuant to the Bankruptcy Reform Act of 1978 codified as 11 U.S.C. §101 et seq., and the regulations issued thereunder, both as hereafter modified from time to time (the "Federal Bankruptcy Code"), or any similar federal or state statute, shall be filed by or against Borrower, unless such appointment, assignment, adjudication or petition was involuntary, in which event only if the same is not discharged, stayed or dismissed within thirty (30) days; 7.1.e) A judgment for the payment of money shall be rendered against Borrower and Borrower shall not discharge the same or cause it to be discharged within fifteen (15) days from the entry thereof, or shall not thereafter secure a stay of execution pending such appeal; 7.1.f) Borrower or a member of Borrower shall have concealed, removed and/or permitted to be concealed or removed any substantial part of its property and/or assets with the intent to hinder, or defraud Lender of any of its property and/or assets which delay be fraudulent under federal or state bankruptcy, fraudulent conveyance or similar may any law now or hereafter enacted, or if Borrower shall have made any transfer of any of its property and/or assets to or for the benefit of a creditor at a time when other creditors situated have not been paid, or if Borrower shall have suffered or permitted to similarly FILED: KINGS COUNTY CLERK 03/14/2024 09:25 AM INDEX NO. 507486/2024 NYSCEF DOC. NO. 4 RECEIVED NYSCEF: 03/14/2024 be suffered, while insolvent, any creditor to obtain a lien upon any of its property and/or assets through legal proceedings or distraint which is not vacated within thirty (30) days from the date of entry thereof; 7.1.g) Borrower or any Guarantor defaults under any other note, instrument, agreement, contract, pledge, mortgage or encumbrance evidencing and/or securing the Indebtedness or any other indebtedness of Borrower, and such event or occurrence is not remedied or cured within thirty (30) days after written notice thereof or an "event of default" (as defined in such other note, instrument, agreement, contract, pledge, mortgage or encumbrance) shall have occurred; or 7.1.h) If, without the written consent of Lender, the interest of any member of Borrower is assigned or transferred, or the manager withdraws, resigns or is replaced, unless due to the death or disability of the manager. 7,1.i) Any of the events enumerated in this Section with respect to any Guarantor or any of its property shall have occurred; 7.2. After the occurrence of an Event of Default, Lender may accept any payments from Borrower without prejudice to the rights and remedies of Lender provided herein or in the Mortgage or the Loan Documents. 8. DEFAULT INTEREST/LATE CHARGES 8.1. From and after the occurrence of an Event of Default, regardless of whether or not there has been a notice of default issued by the Note Holder, interest shall accrue on the outstanding Indebtedness, and shall be payable, at a rate equal to 23.99% per annum (the "Involuntary Rate"). In addition, the Involuntary Rate shall remain in effect during any period of default even upon the acceleration of the indebtedness evidence by this Note. The Involuntary Rate shall be in effect at all times after the maturity of the Indebtedness (whether on the Maturity Date, by acceleration or otherwise). Upon acceleration or maturity, the Involuntary Rate shall remain in effect until all sums due under this Note, the Mortgage and the Loan Documents shall have been paid in full. This clause, however, shall not be construed as an agreement or privilege to extend the date of the payment of the Indebtedness, or as a waiver of any other right or remedy accruing to Lender by reason of the occurrence of any Event of Default. 8.2. Except for any payment of the Indebtedness after acceleration, if any payment (or part thereof) provided for herein shall not be made when due, a late charge of six ($0.06) cents for each dollar so overdue shall become immediately due and payable to the Note Holder as liquidated damages for failure to make prompt payment and the same shall be secured the Mortgage. This fee is not a penalty but a fee reasonably calculated by to reimburse the Note Holder for administrative and staff time. Such charge shall be payable in any event no later than the due date of the next subsequent installment or, at the option of Note be deducted from deposits held Lender as Holder, may any by additional for this Note. herein is intended to or shall extend the due security Nothing FILED: KINGS COUNTY CLERK 03/14/2024 09:25 AM INDEX NO. 507486/2024 NYSCEF DOC. NO. 4 RECEIVED NYSCEF: 03/14/2024 dates set forth for payments under this Note. Such late fee may be charged on any subsequent delinquent payment. 8.3. Should the Indebtedness or any part thereof be collected at law or in equity, or in bankruptcy, receivership or any other court proceeding (whether at the trial or appellate level),