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Director, over a period of 10 years or until the Interfund Loan is paid in full, whichever occurs earlier <br />(the "Maturity Date"). <br />2.03. Payments on the Interfund Loan will be made solely from the tax abatements received <br />by the City from Sherburne County in the 6-month period before any Payment Date (the "Tax <br />Abatements") in accordance with the Tax Abatement Act. Payments shall be applied to unpaid <br />principal, unless otherwise specified by the Finance Director. Payments on this Interfund Loan map <br />be subordinated to any outstanding or future bonds, notes, or contracts secured in whole or in part <br />with Tax Abatements and are on a parity with any other outstanding or future interfund loans secured <br />in whole or in part with tax abatements at the discretion of the Finance Director. <br />2.04. The principal sum payable under this resolution is pre -payable in whole or in part at <br />any time by the City without premium or penalty. <br />2.05. This resolution is evidence of an internal borrowing by the City and is a limited <br />obligation payable solely from Tax Abatements pledged to the payment hereof under this resolution. <br />The Interfund Loan shall not be deemed to constitute a general obligation of the State of Minnesota <br />or any political subdivision thereof, including, without limitation, the City. Neither the State of <br />Minnesota, not any political subdivision thereof shall be obligated to pay the principal of or interest <br />on the Interf ind Loan or other costs incident hereto except out of Tax Abatements. <br />2.06. The City may at any time make a determination to forgive the outstanding principal <br />amount on the Interfund Loan, in whole or in part, on any date from time to time, to the extent <br />permissible under law. <br />2.07. The City may from time to time amend the terms of this Resolution to the extent <br />permitted by law, including without limitation amendment to the payment schedule and the interest <br />rate. <br />Section 3. Effective Date. This resolution is effective upon adoption. <br />Approved by the City Council of the City of Elk River this 1st day of November 2021. <br />hnMDietzikayor <br />ATTEST: <br />Tina Allard, City Clerk <br />NE136-281-741111.v4 <br />