RES 80-034 RESOLUTION RELATING TO A $780,000 COMMERCIAL DEVELOPMENT REVENUE NOTE; AUTHORIZING THE ISSUANCE THEREOF PURSUANT TO MINNESOTA STATUTES, CHAPTER 474

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to and includill,r the three hundred tv,enty-third (323rd) mouth thereafter, principal nncl interest shill he clue allied payahle in cllual monthly hiMnilmonls of Six Thousarnd Dive. Ilundred Fifty-nine incl IIU/loo ($(;155'r,Illl) Dollalr:s With a final paiynrent • due ort the tlrr•ce i1IIII(I 'd twenty-fourth (324th) month there- after on which date the entire unpaid balance together with accrued interest shall be due and payable. In the event of a Determination of Taxability, tis defined in the Loan Agreement, the rate of interest hereon shall automatically be increased to eleven and one-half der '-ent (11 1/20,')), per annum effective as of the Date of Taxability, as defined in the Loan Agreerne}lt, unless the 1-)ate of Taxnhility occurs before'-the Purchase Date, inwhi�ILct>se_tTiis 1�oth �c'a_r interest from the Irate of Taxability until the Purchase D_ Itc [It an M111ual rate that s iall`at all times-b-c-X--Qua( to ) pcrcentage_points over the prime rate of interest eha_r�ed_by First a ionai -i3ank of liinneapolis from time to tinge on 90-day--- loans to its commereini borrowers of the hichest credit standinfi, which allnual�rate shall change when and as said prime rate shall change, until the Purchase Date at which trr�Iie an thereafter the interest'rate shall heeleven-and one-half Dercent 1/2%) per_ annum. In the event of it getermination of Taxability, monthly payments of principal and interest from and after the*Date of Taxability shall be recomputed at the applicable interest rate or, rotes set forth above using the amortization period used in the original computation of the payments due hereunder and the City shall (a) promptly pay to the Holder hereof and to any_prior Holder the aggregate difference between (i) the amounts actually paid hereunder between the Date of Taxability and the date of Determination of 'Taxability and (ii) the amounts which would have been paid to the Holder hereof during such period if the increased interest rate or rates had been in effect and (b) pay to the Liolder hereof after the date of Determination of Taxability monthly payments of principal and interest as • so recomputed. All interest shall he computed on the basis of the actual number of days elapsed on the assumptions that each month contains thirty (30) days arid each year three hundred sixty (360) days. All payments made under this Note shall be applied first to interest and then to principal, except that if any advances made by the lIolder under the terms of any instruments securing the Note are not repaid, any gronc",s received, at the option of the Holder hereof may first be applied to repay such advances, plus interest thereon,Aat a rate of interest equal to that provided for herein in the event of a Determination of Taxahility, and the balance, if any, shall be applied on account of any installments then due. This Note is issued pursuant to the Minnesota Municipal industrial Develop- merit Act, Chapter 474, Minnesota Statutes, as amended (the "Act"), and in conformity with the provisions, restrictions and limitations thereof. This Note does not represent a debt or plcdi�e of the faith or credit of the City or grant to the Holder hereof. any right to halve the City levy any taxes or appropriate tiny fUlldS for the payment of the principal hereof or interest hereon, nor is this Note a i;encral obligmtion of the City or the individual officers or al;ents thereof. This Note and interest hereon are paryahle solely and only out of the moneys, received under the Loan Agreement or realized from the enforcement of the security hereinafter described. The liability of the City hereunder is further restricted in all respects as set forth in Section 474.10 of the Act. • -2-