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The proceeds of this Note are to be disbursed in part pursuant to the terms and conditions of that certain Construction Loan Agreement of even date herewith by and among the City, Plaisted and the First National Bank in Anoka (the "Construction Loan Agreement") . This Note constitutes an issue in the total authorized face amount of $320, 000. This Note is issued by the City pursuant to the authority granted by Minnesota Statutes , Chapter 474, as amended (the "Act") , for the purpose of providing funds for a Project, as defined in Minnesota Statutes , Section 474. 02, Subdivision la, consisting of certain real estate and construction of improvements thereon, and paying necessary expenses incidental thereto, such funds to be loaned by the City to Plaisted pursuant to a Resolution, adopted June 18 , 1979 , by the City (the "Resolution") , the Loan Agreement and the Construction Loan Agreement, thereby assisting activ- ities in the public interest and for the public welfare of the City of Elk River. This Note is secured by a Combination Mortgage and Security Agreement and Fixture Financing Statement, of even date herewith (the "Mortgage") , between Plaisted, as Mortgagor, and the Holder, as Mort- gagee, a Pledge Agreement, of even date herewith, between the City and the Holder, and an Assignment of Rents and Leases, of even date herewith, from Plaisted to the Holder. As provided in the Resolution and subject to certain limitations set forth therein, this Note is transferable upon the books of the City at the office of the City Clerk , by the registered Holder hereof in person or by his attorney duly authorized in writing, upon surrender hereof together with a written instrument of transfer satisfactory to the City Clerk, duly executed by the registered Holder or his duly authorized attorney. Upon such transfer the City Clerk will note the date of registration and the name and address of the new registered Holder upon the books of the City. The City may deem and treat the person in whose name this Note is last registered upon the books of the City as the absolute owner hereof, whether or not overdue, for the purpose of receiving payment of or on account of the principal balance, redemption price or interest and for all other purposes, and all such payments so made to the registered Holder or upon its order shall be valid and effectual to satisfy and discharge the liability upon this Note to the extent of the sum or sums so paid, and the City shall not be affected by any notice to the contrary. 411