R2006-94 APPROVING REDEVELOPMENT AGREEMENT WITH IP PLAZA LLC

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„ , , : � �� _; � � ►� PGI l 3 4. Subject to Section 9 below, all Tax Increment collected and deposited into the Special Tax Allocation Fund annually during the term of this Agreement shall be disbursed therefrom from time to time in accordance with this Agreement not later than thirty days (30) from the date on which such monies are deposited therein. All monies contained in the account are pledged solely to the satisfaction of the payment and reimbursement of obligations hereunder. 5. (a) To the extent that monies are not then available in the Special Tax Allocation Fund to reimburse Developer hereunder, the City shall evidence its obligation to reimburse Developer for Redevelopment Project Costs (other than Interest Costs) by the execution and delivery of one or more taxable or non-taxable Notes, which Notes shall be deemed obligations issued by the City pursuant to Section 11-74.4-3 of the Act. THE NOTES SHALL NOT CONSTITUTE GENERAL OBLIGATIONS OF THE CITY, NOR SHALL THEY BE SECURED BY THE FULL FAITH AND CREDIT OF THE CITY. ALL NOTES SHALL BE PAYABLE SOLELY FROM TAX INCREMENT MONIES DEPOSITED FROM TIME TO TIME INTO THE FUND. All notes shall be issued by the City Treasurer's Office, or some other agreed upon officer or office within the City of Decatur, within 15 days of the City's approval of submitted reimbursable eligible project costs (the procedure of which is set forth in Section 3(b) above). � Execution of said note or notes shall not require further appropriation or approval by the Decatur City Council. All notes shall be secured by a lien on and a pledge of monies deposited from time to time in the Special Tax Allocation Fund. The principal balance of all Notes shall bear interest at an annual rate equal to 200 basis points below the rate of interest announced from time to time in Chicago, Illinois, by the First National Bank of Chicago as its "corporate base rate” of interest if non-taxable and equal to the rate of interest announced from time to time in Chicago, Illinois, by the First National Bank of Chicago as its corporate base rate of interest if taxable or such other interest rate as the City and Developer may hereafter agree upon. The taxability or non-taxable of a Note shall be determined by City's Bond Counsel, Chapman & Cutler prior to any Note being issued. Accrued but unpaid amounts of interest on all outstanding Notes shall be added to the outstanding principal balance of such Notes, on an annual basis as of December 31 of each year, and such additional amounts of principal shall thereafter bear interest in the same manner and at the same rate as the unpaid principal balance of such Notes. All Notes shall mature on or before the termination date of the Tax Increment Financing District. Monies available to pay principal and interest obligations on outstanding Notes shall be applied first to the earliest dated of the outstanding Notes and thereafter to all subsequently dated outstanding Notes with the most recently dated Notes being paid last. In the event that the Developer incurs eligible costs and a Note is issued in a year in which the City has, or intends to exceed its $10 million government purpose obligation limit (or then applicable limit), the Developer agrees said Note shall be taxable, or at the Developer's option the Note may be issued in a subsequent year. (b) No notes, as described in subparagraph (a) hereof, shall be issued until the Developer furnishes the City with a written opinion from the law firm of Chapman & � Page 8 of 29