05.02 - HRA West Grove Townhome Refunding

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permitted under the Levy Act. The City HRA will pay proceeds of the Special Benefits Tax to the Trustee for deposit in the Revenue Fund in accordance with the Indenture. The Special � Benefits Tax shall be deemed to be unrestricted and shall not be pledged to the payment of another obligation if such pledge would be on parity with or have priority over the pledge hereunder. Section 3:6. Countv HRA Pavment of Oneratin� Cost Deficiencies. In Resolution No. 80 dated November 12, 2003, the Board of Commissioners of the County consented to and approved the annual levy by the County F�2A of its Special Benefits Tax of up to .0144 percent of ta�cable market value in the County and to the extent it is needed to pay Operating Costs of the Project. In the event the annual cash flow projection prepared by the City HRA for any Fiscal Year pursuant to the Indenture indicates that Project Revenues available in such Fiscal Year, together with any Special Benefits Tax to be levied by the City HRA under Section 3.5 hereof for the Fiscal Year, will not be sufficient to pay Operating Cost for that Fiscal Year, the County HRA will promptly take steps to levy the Special- Benefits Levy in accordance with the Levy. Act. The County HRA shall timely submit its annual budget to the County each year while the Bonds are Outstanding in accordance with the Levy Act, and shall include in each budget an amount at least equal to the lesser of (i) the deficiency in Operating Costs calculated as described in this Section, or (ii) the maximum levy permitted under the Levy Act. The County HRA will pay proceeds of the Special Benefits Tax to the Trustee for deposit in the Operating Fund in accordance with the Indenture. The pledge of the County HR.A's Special Benefits Tax in any year through the Maturity Date is subject and subordinate to any prior obligation or contract secured by the Special Benefits Tax. � '"\ Section 3.7. Bonds of the Countv HR.A. The County HRA, with the cooperation of the County, will issue the Bonds pursuant to Section 469.034, Subd. 2 of the Act, as further described herein, and will make the proceeds available to the City HRA to finance the cost of constructing and equipping the Project. The Bonds will be secured by a lien on Project Revenues, by the Special Benefits Tax of the City HR.A, a debt service reserve fund, and by a pledge of the full faith and credit and taxing power of the County, all as described in Exhibit C hereto. Section 3.8. Reimbursemerit of Countv and Countv HRA. Revenues will be applied by the County HRA and the Trustee as provided in Article Five of the Indenture. Any amounts released to the County HRA in any year from the Surplus Fund established under the Financing Documents, and any operating income received by the County HRA or the City HRA from the Project following the date on which the Bonds have been paid in full and the Indenture has been discharged, will be applied by the County HRA in the following order: First, to the extent pledged to the Bonds, to the trustee or paying agent to pay any fees or charges then due; Second, to repay to the County advances, if any, that the County shall have made from its own resources to pay debt service on the Bonds pursuant to the pledge by the County HRA of the County's full faith and credit to the Bonds (which pledge was made by the County HRA on October 13, 2003 and approved by the County in Resolution No. 71 on October 14, 2003), -1 EMT-238666v5 'J CR195-4