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73495160v3
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<br />FUNDING LOAN AGREEMENT
<br />This FUNDING LOAN AGREEMENT (as amended, modified or supplemented from time to
<br />time, this “Funding Loan Agreement”), dated as of June 1, 2022, made and entered into by and among City
<br />of Little Canada, Minnesota, a municipal corporation under the laws and Constitution of the State of
<br />Minnesota (together with its successors and assigns, the “Governmental Lender”), U.S. Bank Trust
<br />Company, National Association, a national banking association (together with its successors and assigns,
<br />the “Fiscal Agent”), and Allianz Life Insurance Company of North America, a Minnesota corporation, as
<br />Funding Lender (together with any successor Funding Lender hereunder and their respective successors
<br />and assigns, (the “Funding Lender”),
<br />W I T N E S S E T H:
<br />WHEREAS, the Governmental Lender is authorized under Minnesota Statues, Chapters 462A,
<br />462C, and 474A, as amended (collectively, the “Act”), to provide financing with respect to one or more
<br />projects authorized under the Act for such payments and upon such terms and conditions as the
<br />Governmental Lender may deem advisable in accordance with the provisions of the Act; and
<br />WHEREAS, Twin Lake Limited Partnership, a Minnesota limited partnership (the “Borrower”)
<br />has applied to the Governmental Lender for a loan (the “Borrower Loan”), to finance the acquisition,
<br />construction and equipping of a multifamily apartment housing facility consisting of total of 60 units and
<br />related personal property and equipment, located in Little Canada, Minnesota and known as “Twin Lake
<br />Apartments” (the “Project Facilities”); and
<br />WHEREAS, the Borrower has requested the Governmental Lender to enter into this Funding Loan
<br />Agreement under which the Funding Lender will make a loan (the “Funding Loan”) to the Governmental
<br />Lender, the proceeds of which will be loaned under pursuant to a Borrower Loan Agreement of even date
<br />herewith (as it may be supplemented or amended, the “Borrower Loan Agreement”) to finance the
<br />acquisition, construction, rehabilitation, development, equipping and/or operation of the Project Facilities;
<br />and;
<br />WHEREAS, pursuant to the Borrower Loan Agreement, the Borrower agrees to make loan
<br />payments to the Governmental Lender in an amount which, when added to other funds available under this
<br />Funding Loan Agreement, will be sufficient to enable the Governmental Lender to repay the Funding Loan
<br />and to pay all costs and expenses related thereto when due; and
<br />WHEREAS, to evidence its payment obligations under the Borrower Loan Agreement, the
<br />Borrower will execute and deliver to the Governmental Lender its Promissory Note dated the Closing Date
<br />(the “Borrower Note”) and the obligations of the Borrower under the Borrower Note will be secured by a
<br />lien on and security interest in the Project Facilities pursuant to Mortgage, Assignment of Rents and Leases,
<br />Security Agreement and Fixture Filing dated as of the date hereof, made by the Borrower to the
<br />Governmental Lender and assigned to the Fiscal Agent covering the Project Facilities of even date herewith
<br />(the “Mortgage”); and
<br />WHEREAS, the Governmental Lender has executed and delivered to the Funding Lender its
<br />Multifamily Housing Revenue Note dated as of the Closing Date (the “Governmental Note”) evidencing
<br />its obligation to make the payments due to the Funding Lender under the Funding Loan as provided in this
<br />Funding Loan Agreement, all things necessary to make the Funding Loan Agreement the valid, binding and
<br />legal limited obligation of the Governmental Lender, have been done and performed and the execution and
<br />delivery of this Funding Loan Agreement and the execution and delivery of the Governmental Note, subject
<br />to the terms hereof, have in all respects been duly authorized;
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