RES 13-52 - Laserfiche WebLink

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2.03. Payments on the Interfund Loan will be made solely from the tax increment from the TIF .District received by the City fiom Sherburne County in the six-month period before any Payment Date, net of the amount paid under any agreement with a private developer or otherwise pledge to the payment of any obligation (the "Available Tax Increment"), Payments shall be applied first to accrued interest, and then to unpaid principal, unless otherwise specified by the City Administrator. Interest accruing from the Loan Date will be compounded semiannually on February 1 and August. 1 of each year and added to principal, unless otherwise specified by the City Administrator. 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 a parity with any other outstanding or future interfund loans secured in whole or in part with available tax increment. 2.04. The principal sum and all accrued interest payable under this resolution is pre- payable in whole or in part at any time by the City without premium or penalty. 2.05. This resolution is evidence of an. internal borrowing by the City in accordance with Section 469.178, subdivision 7 of the TIF Act, and is a limited obligation payable solely from Available Tax Increment pledged to the payment hereof under this resolution. The Interfund Loan shall not be deemed to constitute a general obligation of the State of Minnesota or any political. subdivision thereof, including, without .Limitation, the City. Neither the State of Minnesota, Dior any political subdivision thereof shall be obligated to pay the principal of or interest on the Interfund Loan or other costs incident hereto except out of Available Tax Increment. The City 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 City may at any time make a determination to forgive the outstanding principal amount and accrued interest on the Interfiind Loan, in whole or in part, on any date from time to time, to the extent perin.issible under law. 2.07. The City may from time to time amend the terms of this Resolution to the extent permitted by law, including without .limitation amendment to the payment schedule and the interest rate; provided that the interest rate may not be increased above the maximum specified in. Section 469.178. subd. 7 of the TIF Act. Section 3. Effective Date. This resolution is effective upon execution in full of the Contract. Adopted this 3"' day of September, 2013. "VY J ATTEST: Tina Allard, City Clerk 2