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2.02. Principal and interest ("Payments") on the Interfund Loan shall be paid semi-annually on each August 1 and February 1 (each a "Payment Date"); connnencing on the first Payment Date on which the Authority has Available Tax lncrement (defined belo«~), or on any other dates determined by the City Finance Director; through the date of last receipt of tax increment from the TIF' District. 2.03. Payments on this Interfund Loan are payable solely from "Available Tax Increment," «-hick shall mean, on each Payment Date, tax increment available after other obligations have been paid, or as determined by the City Finance Director, generated in the preceding six~(6) months with respect to the property within the T1F District and remitted to the HRA by Sherburne County; all in accordance with Minnesota Statutes, Sections 469.174 to 469.1799, all inclusive, as amended. Payments on this Interfund Loan may be subordinated to any outstanding or future bonds, notes or contracts secured in whole or in part with Available Tax Increment, and are on parity with any other outstanding or future ilterfund loans secured in whole or in part «-ith Available Tax 111crement. 2.04. The principal sum and all accrued interest payable under this Interfund Loan are pre- payable in whole or in part at any time by the HRA without premium or penalty. No partial prepayment shall affect the amount or timing of any other regular payment otherwise required to be made under this Interfund Loan. 2.05. This Interfund Loan is evidence of an internal borrowing by the HRA in accordance with Minnesota Statutes, Section 469.178, Subd. 7, and is a limited obligation payable solely from Available Tax Increment pledged to the payment hereof under this resolution. This Interfund Loan 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 HRA. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on this Interfund Loan or • other costs incident hereto except out of Available Tax Increment, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on this Interfund Loan or other costs incident hereto. The HRA 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 HRA may amend the terms of this Interfund Loan at any time by resolution of the HRA Board, including a determination to forgive the outstanding principal amount and accrued interest to the extent permissible under law. Section 3. Effective Date. This resolution is effective upon the date of its approval. Section 4. Approval of Loan for the Elk River Pizza Ranch Project. 4.01. Robert G. McDonald (as an individual or through an entity to be created, the "Borrower'') has applied to the HRA for a loan in the principal amount of $90,000.00 to finance SAC and WAC fees and a portion of the cost of land for additional parking (the "Loan") in connection with substantial renovations to and equipping of the building located at 19141 Freeport St NW, Elk River, Minnesota, which will be operated by the Borrower as Class I restaurant of approximately 220 seats (the "Pizza Ranch Project"). 4.02. The HRA believes that the development of the Pizza Ranch Project subject to all of the terms and conditions of a Loan Agreement to be entered into between the HRA and the Borrower (the "Loan Agreement"), and fulfillment generally of the Loan Agreement, are in the vital and best interests of the City and the health, safety, morals, and welfare of its residents, and in accord with the public purposes and provisions of the applicable State 385619v2 JSB EL185-12