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ARTICLE 5 <br />PREPAYMENT OF LOAN <br />Section 5.1 Prepayment at Option of Borrower. The Borrower may at its option <br />prepay the Loan, in whole or in part, at par plus accrued interest, and without penalty unless the <br />source of such funds for such prepayment is proceeds of' borrowing with a financial institution <br />other than the Lender. If the source of funds for the prepayment are the proceeds of borrowing <br />with a financial institution other than the Lender, the Borrower may at its option prepay the <br />Loan, in whole but not in part, at par plus accrued interest, plus a prepayment penalty of 5% of <br />the then outstanding Principal Balance if the prepayment occurs on or prior to December 20, <br />2008; of 4% of the then outstanding Principal Balance if the prepayment occurs after December <br />20, 2008 but on or prior to December 20, 2009; of 3% of the then outstanding Principal Balance <br />if the prepayment occurs after December 20, 2009 but on or prior to the December 20, 2010; of <br />2% of the then outstanding Principal Balance if the prepayment occurs after December 20, 2010 <br />but on or prior to December 20, 2011; of 1% of the then outstanding Principal Balance if the <br />prepayment occurs after December 20, 2011 but on or prior to December 20, 2012; and of 0% of <br />the then outstanding Principal Balance if the prepayment occurs after December 20, 2012. Any <br />partial prepayment shall be applied first against the interest accrued on the Note and then the <br />outstanding Principal Balance of the Loan. Required monthly payments will not be reduced as a <br />result of a partial prepayment unless the Borrower satisfies the conditions set forth in Section 3 <br />of the Note. In the event the Borrower elects to prepay the Loan, the Borrower shall cause to be <br />given in the name of the City due notice of redemption or prepayment of the Note as required by <br />the Note, and shalt pay the prepayment price when due to the Lender. The City hereby authorizes <br />the Borrower to give mailed notice of prepayment and, if required by law, published notice of <br />prepayment of the Note in the name of the City, from time to time. <br />2110583v4 <br />2'- 3 9 - <br />