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• xp aid or incurred b h i expenses_ p y the City or HRA in connection with the approval , establishment , and operation of Redevelopment Plan for Redevelopment Project No . 2 of the HRA, Tax Increment Financing Plan for Tax Increment Financing District No . 2 Ramsey County of the HRA or the Redevelopment Project No . 2 of the HRA, together with interest on any such administrative expenses paid by the HRA or the City from other funds at the rate of twelve percent ( 12%) per annum from the date such expenses are paid by the City or HRA until reimbursed from the Tax Increment , second to pay interest then due and payable on this Note, and third to pay principal then due and payable on this Note. Any amounts remaining in the Bond Fund on any January 1 , commencing January 1 , 1991 , following the payment or reimbursement of all administrative expenses of the HRA or City, together with interest thereon, and interest then due and payable on the Note, shall be applied by the HRA to prepay the principal of the Note in whole or in part, without premium, together with accrued interest on the principal amount of this Note prepaid. In the event that amounts on hand in the Bond Fund are not sufficient to pay the principal of and interest on this Note when due, the failure of the HRA to pay such principal and interest shall not constitute a default hereunder . This Note and the interest hereon shall not be deemed • to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the City of St . Anthony, Minnesota (the "City" ) or the HRA. Neither the State of Minnesota, nor any political subdivision thereof, including, without limitation, the City or the HRA, shall be obligated to pay the principal of or interest on this Note or other costs incident hereto except from Tax Increment pledged therefor -by the Resolution, and neither the full faith and credit- nor the taxing power of the State of Minnesota or any political subdivision thereof, including, without limitation, the City or the HRA, is pledged to the payment of the principal of or interest on this Note or other costs incident hereto. NEITHER THE HRA OR CITY MAKES ANY REPRESENTATION OR WARRANTY AS TO THE EXEMPTION FROM FEDERAL INCOME TAXATION OF THE INTEREST ON THE NOTE OR THAT THE TAX INCREMENT WILL BE SUFFICIENT TO PAY THE PRINCIPAL OF OR INTEREST ON THIS NOTE WHEN DUE. All interest hereon shall be computed on the basis of a 360 day year consisting of twelve thirty day months . In the event the HRA shall fail to make when due any interest payments or principal and interest payments required • under this Note, the interest payment or principal and interest payment so in default shall continue as an obligation of the -4-