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<br /> This Bond is issued pursuant to Minnesota Statutes, Sections 469.091 to 469.1082, as amended (the
<br />“Act”), and specifically Section 469.103 of the Act, and in conformity with the provisions, restrictions and
<br />limitations thereof. This Bond does not constitute or give rise to a charge against the general credit or
<br />properties or taxing powers of the Authority or the City of Lino Lakes, Minnesota (the “City”) and does not
<br />grant to the Registered Owner of this Bond any right to have the Authority or the City levy any taxes or
<br />appropriate any funds for the payment of the principal hereof or interest hereon, nor is this Bond a general
<br />obligation or a pecuniary liability of the Authority or the City or the individual officers or agents thereof.
<br />This Bond does not constitute an indebtedness of the Authority or the City, within the meaning of any state
<br />constitutional provision or statutory limitation. This Bond and interest hereon are payable solely from Lease
<br />Payments to be paid by the City pursuant to a Lease-Purchase Agreement, dated as of ___________ 1, 2015
<br />(the “Lease”), from the Authority to the City, or other moneys held by the Bond Registrar in a fund or
<br />account appropriated to the payment of the Bonds of this series under the Bond Resolution adopted by the
<br />Authority on March 23, 2015 (the “Resolution”).
<br />
<br /> The Authority’s Board of Commissioners has designated the issue of Bonds of which this Bond
<br />forms a part as “qualified tax-exempt obligations” within the meaning of Section 265(b)(3) of the Internal
<br />Revenue Code of 1986, as amended (the “Code”) relating to disallowance of interest expense for financial
<br />institutions and within the $10 million limit allowed by the Code for the calendar year of issue.
<br />
<br /> THE OBLIGATION OF THE CITY TO MAKE LEASE PAYMENTS PURSUANT TO THE
<br />LEASE IS SUBJECT TO ANNUAL APPROPRIATION BY THE CITY COUNCIL OF THE CITY. IN
<br />THE EVENT THE CITY COUNCIL DETERMINES NOT TO APPROPRIATE MONEYS FOR THE
<br />PAYMENT OF LEASE PAYMENTS DUE IN A FISCAL YEAR, THE LEASE WILL TERMINATE AT
<br />THE END OF THE THEN CURRENT FISCAL YEAR, AND THE CITY WILL HAVE NO FURTHER
<br />OBLIGATION TO MAKE LEASE PAYMENTS PURSUANT TO THE LEASE.
<br />
<br /> This Bond is one of a duly authorized series of special, limited obligation Bonds in an aggregate
<br />principal amount of $____________, in denominations of $5,000 or integral multiples thereof not exceeding
<br />the principal amount maturing in any year, and numbered from R-1 upwards, and of like tenor and effect
<br />except as to serial number, denomination, interest rate, maturity and right of prior redemption, all of which
<br />have been authorized by law to be issued and have been issued or are to be issued by the Authority pursuant
<br />to the Resolution, to provide financing for the acquisition of the Site and construction of the Facility on the
<br />Site, all as described in the Lease. The Bonds are equally and ratably secured by the Resolution and the
<br />Lease. Pursuant to a Ground Lease, dated as of __________ 1, 2015 (the “Ground Lease”), from the City to
<br />the Authority, the City has leased the Site described in the Lease to the Authority. Reference is hereby made
<br />to the Ground Lease, the Lease, the Resolution, and any amendments or supplements thereto for a description
<br />and limitation of the property, revenues and funds pledged and appropriated to the payment of the Bonds, the
<br />nature and extent of the security thereby created, the rights of the Owners of the Bonds, the rights, duties and
<br />immunities of the Bond Registrar, and the rights, immunities and obligations of the Authority and the City
<br />thereunder. Certified copies of the Resolution and executed counterparts of the Ground Lease and the Lease
<br />are on file at the office of the Authority.
<br />
<br /> The Bonds due on or after ____________ 1, 20__ are subject to optional redemption, at the election
<br />of the City, so long as the Lease is in effect, in whole or in part, and if in part in such manner as the City shall
<br />determine, on ___________ 1, 20__ and any date thereafter, at a redemption price of par plus accrued
<br />interest.
<br />
<br /> Notice of any such redemption shall be given to the Registered Owner of each Bond to be redeemed
<br />by first class mail, addressed to the Registered Owner’s registered address, not later than thirty (30) days prior
<br />to the date fixed for redemption. Prior to the date fixed for redemption, funds shall be deposited with the
<br />Bond Registrar sufficient to pay the Bonds called and accrued interest thereon, plus any premium required.
<br />B-2
<br />458639v1 JAE LN140-112
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