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<br />Security: <br /> <br />It is expected that the loan will only be required to be secured by a "Covenant <br />to Budget and Appropriate" from the City's non ad valorem revenues. <br /> <br />Interest Rate: <br /> <br />Tax~exemlJt Bank Qualified Fixed Rate (15 years Term - 15 years <br />Amortization) <br /> <br />Fixed Rate as of February 23,2010 is 4.20% for 15 years based on a 15- <br />year amortization. The associated estimated annual principal and interest <br />payment is: $1,352,930. Interest rate will be computed on a 360-day <br />calendar year based on the actual number of days elapsed. This fixed rate <br />assumes that the rate Is locked for the next 30 days to allow the City to <br />close on this Loan. <br /> <br />Prepayment: <br /> <br />The above options assume that the loan will carry a standard "make whole" <br />prepayment penalty provision language (see attached Addendum). <br /> <br />Closing Fee: <br /> <br />A flat fee of $7,500 will apply for the Tax Exempt loan for the drafting of all <br />legal documentation relating to this loan by Bank/Bond Counsel plus <br />rendering of legal opinion and $2,500 Bank Loan Fee. <br /> <br />Covenants and Conditions <br /> <br />A) All matters relating to this loan, including all instruments and documents required, are <br />subject to the Bank's policies and procedures in effect, applicable governmental regulations <br />and/or statutes, and approval by the Bank and the Bank's Counsel. <br /> <br />B) Bank's legal counsel will prepare the legal documents for this transaction. Bank's Counsel <br />shall submit a written opinion, in form and substance acceptable to SunTrust Bank that all <br />documents are valid, binding and enforceable in accordance with their terms, that execution <br />and delivery of said documents has been duly authorized <br /> <br />C) Borrower shall continue to maintain similar to existing level of depository banking <br />relationship with the Bank and Loan payments will be settled via auto debit. <br /> <br />D) Borrower shall submit annual audited statements within 210 days of fiscal year end, together <br />with an annual budget within 30 days of adoption, together with any other information the <br />Bank may reasonably request. <br /> <br />Anti-Dilution Test shall be set at 1.50x based on the requirement that General Fund Non Ad- <br />Valorem revenues less any portion of essential governmental services that is not covered <br />by ad-valorem revenues, shall provide a minimum annual debt service coverage of 1.50 <br />times on Borrower's debt secured by Non-Ad Valorem revenues. Essential services are <br />defined as general governmental and public safety expenses. <br /> <br />Borrower maximum annual debt service backed by a Covenant to Budget and Appropriate <br />shall not exceed 20% of Governmental Fund revenues. <br /> <br />2 <br />