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On each August 1 and February 1 through and including February 1, 2005, following the date of issuance of the Certificate of Completion, the HRA will apply all Available Tax Increment, as hereinafter defined, to payment of this Bond. All such payments shall be applied first to accrued interest and then to the principal amount of this Bond. No further amounts shall be due and owing on this Bond after February 1, 2005, notwithstanding that the full principal amount of this Bond and accrued interest shall not have been paid on such date, and any principal and interest remaining unpaid as of such date shall be considered forgiven by the Redeveloper. "Available Tax Increment" is defined as all Tax Increment then on hand with the HRA following the reimbursement to the City and HRA of up to $2,500 in any calendar year for out-of-pocket administrative expenses paid or incurred by the HRA or City in connection with the approval, establishment and administration of Redevelopment Plan for Redevelopment Project No. 3 of the HRA and the Tax Increment Financing Plan for the District or related-to the Bond. In the event that Available Tax Increment is not sufficient to pay the principal of and.interest on this Bond when due, the failure of the HRA to pay such principal and interest shall not constitute a default hereunder. This Bond 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 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 or interest on this Bond 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 Bond or other costs incident hereto. NEITHER THE HRA OR THE CITY MAKES ANY REPRESENTATION OR WARRANTY THAT THE AVAILABLE TAX INCREMENT WILL BE SUFFICIENT TO PAY THE PRINCIPAL OR INTEREST ON THIS BOND WHEN DUE. All interest hereon shall be computed on the basis of a 360 day year consisting of twelve thirty day months. The principal amount of this Bond may be prepaid, either in whole or in part, on any date upon payment of the price equal to the principal being so prepaid plus accrued interest to the date of prepayment without premium. Any such prepayment shall be applied first to accrued interest and then to principal. C-2