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accrues on the principal amount of the Interfund Loan from the date each such advance is made. The Interfund Loan shall bear interest at the rate of 5.0% per annum. 2.02. Principal and interest ("Payments") on the Interfund Loan shall be paid semiannually on each August 1 and February 1 (each a "Payment Date"), commencing on the first Payment Date on which the Authority has Available Tax Increment (as defined herein), or on any other dates determined by the Executive Director, through the date of last receipt of Available Tax Increment from the TIF District. 2.03. Payments on the Interfand Loan will be made solely from tax increment from the TIF District received by the Authority from Ramsey County in the.six-month period before any Payment Date, net of the amount paid under any agreement with a private developer or otherwise pledged to the payment of any obligation (the "Available Tax Increment'). Payments shall be applied first to accrued interest, and then to unpaid principal. Interest accruing from the date of each advance will be compounded semiannually on February 1 and August 1 of each year and added to principal until the first Payment Date, unless otherwise specified by the Executive Director. 2.04. The principal sum and all accrued interest payable under this resolution is prepayable in whole or in part at any time by the Authority without premium or penalty. 2.05. This resolution is evidence of an internal borrowing by the Authority 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 or the City. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on the hrterfund 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. The Authority may at any time make a determination to forgive the outstanding principal amount and accrued interest on the Interfund Loan to the extent permissible under law. 2.07. The Authority may from time to time 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, subdivision 7 of the TIF Act. Section 3. Effective Date. This resolution is effective upon its approval. 2 583367v1MU205-49