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<br />.
<br />
<br />2.3) The City has received an offer to purchase the Note
<br />from the First National Bank of Elk River located in the City
<br />at a price equal to the par value of the Note (One Hundred
<br />Sixty Thousand Dollars ($160,000)) and upon the further terms
<br />and conditions hereinafter set forth.
<br />
<br />2.4) The sale of the Note is hereby awarded to the First
<br />National Bank of Elk River.
<br />
<br />Section 3. Bond Terms, Execution and Delivery.
<br />
<br />3.1) The Note shall be designated General Obligation Tax
<br />Increment (Taxable) Note, Series 19920, shall be dated as of
<br />November 1, 1992, and shall bear interest from the date on
<br />which funds are advanced until paid, calculated from time to
<br />time upon the amount of the unpaid principal balance, at a rate
<br />of seven and nine-tenths percent (7.9%) per annum. The Note
<br />shall be issued in the principal amount of One Hundred Sixty
<br />Thousand Dollars ($160,000) providing for installments of
<br />principal becoming payable annually on February 1 in each year,
<br />commencing February I, 1996, such installments to be paid at
<br />the times and in the amounts stated below:
<br />
<br /> ~ Amount of Principal Payment
<br /> February 1, 1996 $10,000
<br /> February 1, 1997 $10,000
<br />. February 1, 1998 I $10,000
<br />February 1, 1999 $ 8,500
<br /> February I, 2000 $10,000
<br /> February 1, 2001 $11,500
<br /> February I, 2002 $12,500
<br /> February 1, 2003 $15,000
<br /> February 1, 2004 $16,500
<br /> February 1, 2005 $18,500
<br /> February 1, 2006 $20,000
<br /> February 1, 2007 $17,500
<br />
<br />Accrued interest on the Note shall be payable semi-annually on
<br />February 1 and August 1 in each year, commencing February 1,
<br />1993. The principal of and interest on the Note shall be
<br />payable to the First National Bank of Elk River, at its offices
<br />in Elk River, Minnesota, or, as may otherwise be directed by
<br />written instruction from time to time provided by the holder of
<br />the Note.
<br />
<br />3.2) The Note may be prepaid, at the option of the City,
<br />in whole or in part, or at any time on or after February 1,
<br />1998, without premium, and if in part in inverse order of due
<br />dates. The City shall notify the holder of the Note of the
<br />intention to make a prepayment at least thirty (30) days prior
<br />to the date chosen for prepayment.
<br />
<br />.
<br />
<br />3.3) The Note shall be in substantially the form attached
<br />hereto as Exhibit B and incorporated herein as reference.
<br />
<br />2.
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