CC PACKET 11252003 - Laserfiche WebLink

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Page 2 of 3 Principal Payment: Principal repayment will occur with the issuance of tax increment bonds on or before Spring 2007. In no event shall the repayment date of any advance exceed the maturity date of the Loan. Draw Period Expiration: Six months prior to Loan Maturity. Prepayment: Prepayment may occur at any time. Security/ Recourse: Full recourse to the City's assets. Collateral: $837,500 (25% of the Loan amount). Loan Covenants: No Fannie Mae Foundation grants,loans or investments may be used by the City to repay or facilitate the repayment of the Loan. The City will make timely payments of principal and interest. The City will obey and comply with all laws, ordinances and regulations that may adversely affect its corporate existence or that may be ordered by a court or other governmental body. The City will pay all of its debt.obligations in accordance with the terms set forth in those obligations. The City will notify Fannie Mae in writing of any event of default within three days after obtaining knowledge of the event. Within thirty days of the commencement of a lawsuit that may materially impact the City, the City will notify Fannie Mae in writing of the suit. The City will provide such information as Fannie Mae may request with reasonable promptness. The City will maintain proper books and records. The City will maintain a rating of Al from.Moody's for its Long-Term General Obligation debt throughout the term of this Loan. If the General Obligation rating from Moody's is reduced to A2, then the interest rate on the Loan shall be increased by 25 basis points. If the General Obligation rating from Moody's is reduced to A3, the Loan shall become due and payable. Legal Fees: All legal fees to be paid by the City at closing. Legal fees shall be paid whether or not the Loan closes. Origination Fee: 100 basis points of the Loan amount, due and payable at closing. "This term sheet is provided solely as a basis for discussion and is subject to change;it should not be construed as a binding commitment,but merely presented for review and consideration."