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submitted paid invoices in an amount equal to and establishing the Reimbursable Development Costs. (b) The unpaid principal amount of the Tax Increment Note shall bear interest from the date of issuance thereof, at the rate of interest per annum equal to the announced "Reference Rate" of U.S. Bank National Association, Minneapolis, Minnesota, as such Reference Rate is announced and in effect on the date of issuance of the Tax Increment Note, plus 1.5 %. Interest shall be computed on the basis of a 360 day year consisting of twelve (12) 30 -day months. (c) The principal amount of the Tax Increment Note and the interest thereon shall be payable solely from the Tax Increments. (d) On each Note Payment Date and subject to the provisions of the Tax Increment Note, the City shall pay, against the principal and interest outstanding on the Tax Increment Note, 95% of any Tax Increments received by the City during the preceding 6 months. All such payments shall be applied first to accrued interest and then to reduce the principal of the Tax Increment Note. (e) In the event the full amount of the Reimbursable Development Costs and interest thereon has not been paid in full to Developer on or before the maturity date of the Tax Increment Note (i.e., August 1, 2009), said maturity date shall be extended for such period of time as is reasonably determined by the City to enable to the Developer to recover all Reimbursable Development Costs and interest thereon, provided, however, that the maturity date of the Tax Increment Note shall not be extended if: (a) Developer is in default under any term or provision of the Tax Increment Note or this Agreement, or (b) the reason the Developer has not recovered the full amount of Reimbursable Development Costs and interest thereon is due to a reduction in the class rate used in calculating real estate taxes payable with respect to the Development Property. Notwithstanding anything herein to the contrary, in no event shall the maturity date of the Tax Increment Note be extended beyond the termination date of the Tax Increment District. (f) The Tax Increment Note shall be a special and limited obligation of the City and not a general obligation of the City, and only Tax Increments shall be used to pay the principal and interest on the Tax Increment Note. If, on any Note Payment Date, the Tax Increments for the payment of the accrued and unpaid interest on the Tax Increment Note are insufficient for such purposes, the difference shall be carried forward, without interest accruing thereon, and shall be paid if and to the extent that on a future Note Payment Date 1058683.RED V5 to V4; 7/14/99 14 PAGE 31