2005-86 PROVIDING FOR THE ISSUANCE OF A TAXABLE GENERAL OBLIGATION NOTE

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Section 2. Incorporation of Preambles. The Council hereby finds that all of the recitals contained in the preambles to this Ordinance are true, correct and complete and does incorporate them into this Ordinance by this reference. Section 3. Determination to Issue the Note. It is necessary and in the best interests of the City to acquire and construct the Project for the public welfare and convenience, and to pay all related costs and expenses incidental thereto, and to borrow money and issue the Note for such purposes. It is hereby found and determined that such borrowing of money is for a proper public purpose or purposes and is in the public interest, and is authorized by Article VII, Section 6 of the '' Illinois Constitution. Section 4. Note Details. There shall be borrowed for and on behalf of the City the sum of$500,000 for the purposes aforesaid; a drawdown note of the City(the "Note") shall be issued in said amount and shall be designated "Taxable General Obligation Note (Olde Towne Redevelopment Project), Series 2005A." The Note shall be dated the first date on which the Outstanding Principal Amount equals not less than the sum of$10,000 (the "Dated Date"). The "Outstanding Principal Amount" is that amount, not to exceed $500,000 as provided above, shown as advanced in the amounts from time to time and received by the City for value, as is noted on the Note in the form of Advances for Value thereon, less payments of principal thereof. The Note shall mature on the date which is one hundred and twenty (120) months after the Dated Date of such Note subject to the right of optional prior redemption hereinafter stated. Each Note shall bear interest at the Variable Rate, from the later of its Dated Date as herein provided or from the most recent interest payment date to which interest has been paid or duly provided for, until the principal amount of such Note is paid or duly provided for, such interest (computed upon the basis of actual days (365/366) elapsed over a 360-day year) being payable monthly and at maturity. Notwithstanding the foregoing, no Note shall ever bear interest at a rate exceeding 15%. Interest on each Note shall be paid by check or draft of the City, payable upon -5-