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<br />financed with general obligation bonds under the CIP Act. Other capital improvements <br />within will be financed with special assessment bonds under Minnesota Statues Chapter <br />429. <br /> <br />(e) Debt. The City may be asked to provide certain loans to the Developer to <br />support the Development Project. Any agreement by the City to make such loans will be <br />subject to the absolute discretion of the City and will also depend upon a clearly available <br />source of funding, and appropriate security. <br /> <br />ARTICLE VIII <br /> <br />MORTGAGE FINANCING <br /> <br />Section 8.1. Limitation Upon Encumbrance of Property. Prior to the completion of the <br />Minimum Improvements, as determined by the City, neither the Developer nor any successor in <br />interest to the Development Property or any part thereof shall engage in any financing or any <br />other transaction creating any mortgage or other encumbrance or lien upon the Development <br />Property, other than Permitted Encumbrances, whether by express agreement or operation of <br />law, or suffer any encumbrance or lien to be made on or attach to the Development Property, <br />other than Permitted Encumbrances, except: <br /> <br />(a) for the purposes of obtaining funds only to the extent necessary for the <br />acquisition of the Development Property and making the Minimum Improvements <br />(including, but not limited to, labor and materials, equipment, professional fees, real <br />estate taxes, construction interest, organization and other indirect costs of development, <br />costs of constructing the Minimum Improvements, an allowance for contingencies, costs <br />of issuance of any bond or note issue to fund construction or acquisition of the respective <br />Project, amounts required to fund any bond or note reserves relating to construction or <br />acquisition of the Project, and amounts required to fund any required escrow accounts); <br />and <br /> <br />(b) only upon the prior written approval of the City in accordance with <br />Sections 8.1 and 8.2. <br /> <br />The City shall not approve any Mortgage which does not contain terms that conform to the terms <br />of Section 8.5, except as provided in Section 8.6 of this Agreement. <br /> <br />Section 8.2. Approval of Mortgage. The City shall approve a Mortgage if: <br /> <br />(a) the City first receives a copy of all mortgage documents; <br /> <br />(b) the mortgage loan, together with other funds available to the Developer, <br />will, in the reasonable judgment of the City, be sufficient to construct the Minimum <br />Improvements; <br /> <br />22 <br />