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fubSeQUent monthly installments or affect the amount of such install- ents, except to the extent that such installments are wholly or partially paid by such prepayment. In the event of a failure to make any payment principal hereunder when due, an additional charge percent (5%) of the amount of the delinquent payment of interest or equal to five shall be paid. The unpaid principal balance, together with accrued interest, may, at the option of the Lender, be declared due and payable on the eleventh anniversary of the date of this Note or any anniversary date thereafter. In order to validly exercise such call option, the Lender or other Holder shall give written notice at least one year prior to the date on which such call makes the the unpaid principal balance due and payable. This Note is issued pursuant to the Minnesota Municipal Indus- trial Development Act, Chapter 474, Minnesota Statutes, as amended (the "Act"), and in conformity with the provisions, restrictions and limitations thereof. This Note is not payable from nor charged upon any funds other than the amounts payable by the Borrower, pursuant to the Loan Agreement, which are pledged to the payment hereof, and in the event of default, monies derived from the foreclosure or other enforcement of the hereinafter mentioned Mortgage or Assignment. The City is not subject to any liability hereon; neither the Lender, nor Iny other Holder shall ever have the right to compel the exercise of he taxing power of the City to pay this Note or the interest hereon, or to enforce payment hereof against any property of the City; and this Note shall not constitute a charge, lien or encumbrance, legal or equitable upon any property of the City; and this Note does not con- stitute an indebtedness of the City within the meaning of any con- stitutional or statutory limitation. This Note is a special obligation of the City in the principal amount of Four Hundred Fifty Thousand Dollars ($450,000) and is issued pursuant to a resolution of the City adopted by its City Council on 1-1arch , 1981 (the "Note Resolution"), for the purpose of providing funds to be loaned to the Borrower, to be used by the Borrower to construct a building and other improvements (hereinafter called the "Project"), pursuant to the Loan Agreement dated as of March , 1981 (the "Loan Agreement"), between the City and the Borrower. Under the Loan Agreement, the Borrower has agreed to construct the Project and has agreed to make certain loan repayments in amounts and at times sufficient to pay the principal of, premium, if any, and interest on this Note when due. Pursuant to a Loan Assignment dated as of March , 1981 (the "Loan Assignment"), from the City to the Lender, the City has pledged and assigned its interest in the Loan Agreement, with certain exceptions, to the Lender or other Holders hereof. This Note is secured by a Mortgage and Security Agreement dated as of JarCh , 1981 (the "Mortgage"), from the Borrower to the Lender, by which the Borrower has granted to the Lender a first mortgage lien and ecurity interest in the Project, and an Assignment of Rents and eases (the "Assignment"), dated as of March , 1981, from the Borrower to the Lender. Advances of funds to finance the construction 3.