Resolution No. 07-02 EDA - Laserfiche WebLink

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2.03. Payments on the Interfund Loan will be made solely from and to the extent of Available Tax Increment, which terms means 95 percent of the tax increments (as defined in the TIF Act) generated by the TIF District and received by the City from the County pursuant to the TIF Act in the six-month period before such payment date, subject to the following: (a) The pledge of Available Tax Increment under this resolution is subordinate to the prior pledge of tax increment to the TIF Bonds, the Authority's $1,000,000 Taxable Tax Increment Revenue Note, Series 2004, and any other obligation secured in whole or in part by tax increments from the TIF District to which the Authority, in its discretion, elects to make a pledge on a superior basis to this Interfund Loan. (b) The Authority has also, by Resolution No. 04-07, approved an interfund loan in the outstanding principal amount of $950,000 (the "Prior Interfund Loan") that is payable with tax increments form the TIF District; the Authority may in its sole discretion, apply Available Tax Increment under this resolution on a parity, superior or subordinate basis with the Prior Interfund Loan and any other interfund loan hereafter approved in connection with the TIF District. 2.04. Payments shall be applied first to accrued interest, and then to unpaid principal. Interest accruing from each Accrual Date will be compounded semiannually on February 1 and August 1 of each year and added to principal, unless otherwise specified by the Executive Director. 2.05. The principal sum and all accrued interest payable under this resolution is pre- payable in whole or in part at any time by the Authority without premium or penalty. No partial prepayment shall affect the amount or timing of any other regular payment otherwise required to be made under Exhibit A. 2.06. This resolution is evidence of an interfund loan in accordance with Section 469.178, subdivision 7 of the TIF Act, and is a limited obligation payable solely from Available Tax Increment pledged to the payment hereof under this resolution. The Interfund Loan shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the Authority and the City. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on the Interfund Loan or other costs incident hereto except out of Available Tax Increment. The Authority shall have no obligation to pay any principal amount of the Interfund Loan or accrued interest thereon, which may remain unpaid after the final Payment Date. 2.07. Authority staff and officials are authorized and directed to execute any collateral documents and take any other actions necessary to carry out the intent of this resolution. 2.08. The Authority may from time to time, with approval by the City, amend the terms of this Resolution to the extent pemiitted by law, including without limitation amendment to the interest rate; provided that the interest rate may not be increased above the maximum specified in Section 469.178. subd. 7 of the T1F Act. 311948v1 SJB LN140-100 2