Resolution No. 04-07 EDA (Approved)

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Date”). The interest rate is no more than the greatest of the rate specified under Minnesota Statutes, Section 270.75 and Section 549.09, both in effect for calendar year 2004. The interest rate will, without further action by the Authority, be adjusted on January 1 of each year to reflect the greater of the rate specified under Minnesota Statutes, Section 270.75 and Section 549.09 in effect for that calendar year. 2.02. Principal and interest ("Payments") on the Interfund Loan shall be paid semi- annually on the dates (each a “Payment Date”), and in the amounts specified in Exhibit A hereto, as adjusted from time to time in accordance with this resolution. 2.03. Payments on the Interfund Loan will be made solely from Available Tax Increment as defined in the Contract, together with any amounts received by the Authority or City from any future grant from the Metropolitan Council. Payments shall be applied first to accrued interest, and then to unpaid principal. Interest accruing from the 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. Without further action by the Authority, the payment schedule in Exhibit A will be adjusted to reflect the actual Accrual Date, any changes from time to time in the interest rate in accordance with Section 2.01, and reduction in principal described in Section 3.5(c) of the Contract. 2.04. 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, except as otherwise provided in Section 3.5(c) of the Contract. 2.05. 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. 2.06. 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. 2.07. The Authority may from time to time, with approval by the City, amend the terms of this Resolution to the extent permitted by law, including without limitation amendment to the payment schedule and the interest rate; provided that the interest rate may not be increased above the maximum specified in Section 469.178. subd. 7 of the TIF Act. Section 3. Effective Date. This resolution is effective upon execution in full of the Contract. Approved by the Board of Commissioners of the Lino Lakes Economic Development SJB-256912v1 2 LN140-80