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II " ... '~ , iNCluding the earlier of (a) payment in full of each TIF Loan or (b) the tefl1\ination date of the TlF , : District. Payments shall be applied first to accrued interest and the balance to the reduction of '~ principal. Interest accruing from the date of each expenditure to the first Payment Date shall be . . compounded annually on December 31 of each year and added to principal. 2.03. Payments on each TIF Loan are payable solely from Available Tax Increment which shall mean the tax increment available from any TIF District, including the maximum amount oftax increment that may be pooled pursuant to the Special Legislation, after withholding (a) allowable City administrative fees; and, (b) prior obligations, which shall include all general obligation or revenue bonds or notes for which the tax increment revenues of the TIF District is pledged. 2.04. The principal sum and accrued interest payable under each TIP Loan is pre-payable in whole or in part at any time without premium or penalty. No partial prepayment on any TIF Loan shall affect the amount or timing of any regular payments otherwise required to be made under the TIP Loans 2.05. Each TlF Loan is evidence of internal borrowing by the City in accordance with Minnesota Statutes, Section 469.178, Subdivision 7, and is a limited obligation payable solely from . the Available Tax Increments pledged to the payment thereof under this resolution. The TIF Loans ,and the interest thereon shall not be deemed to constitute general obligations of the State of ! Minnesota or any political subdivision thereof, including, without limitation, the City. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principals of or interest on any TIP Loans or other costs incident thereto except out of Available Tax IDcrements, i and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principals of or interest on these TIF Loans or other costs incident thereto. The City shall have no obligation to pay any principal amounts of the TIF Loans or accrued interest thereon, which may remain unpaid after the final Payment Date. 2.06. The City may amend the terms of the TIF Loans at any time by resolution of the City ,i Council, including a determination to forgive the outstanding principal amounts and accrued interest to the extent permissible under law. Section 3. Approval. The Council of the City hereby approves the creation of a Register of Advances and the appointment of its finance director to maintain the Register to reflect an accurate accounting of the interfund loans and advances and approves their repayment in accordance with the TIF Loans. Adopted by the Cotulcil of the City th~~C' 2001. Steve Larson, Mayor JL 7lf~4.~ . Dan Maie!s, Director of Finance and Support Services/City Clerk