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interest thereon, nor to enforce payment thereof against any property of the City. The Note shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation. (k) It is desirable, feasible and consistent with the objects and purposes of the Act to issue the Note, for the purpose of financing the costs of the Project. 1.2 Authorization and Ratification of Proiect. The City has heretofore and does hereby authorize the Borrower, in accordance with the provisions of the Act and subject to the terms and conditions imposed by the Lender, to provide for the refinancing or acquisition and renovation of the Project by such means as shall be available to the Borrower and in the manner determined by the Borrower, and without advertisement for bids as may be required for the renovation and acquisition of other municipal facilities; and the City hereby ratifies, affirms, and approves all actions heretofore taken by the Borrower consistent with and in anticipation of such authority. SECTION 2. THE NOTE. 2.1 Authorized Amount and Form of Note. The Note issued pursuant to this Resolution shall be in substantially the form attached as Exhibit B with such appropriate variations, omissions and insertions as are permitted or required by this Resolution, and in accordance with the further provisions hereof; and the total aggregate principal amount of the Note that may be outstanding hereunder is expressly limited to $1,847,407, unless a duplicate Note is issued pursuant to Section 2.7. The Note shall bear interest at a rate of5.75% per annum through and including the fifth anniversary of the date of closing. On the fifth anniversary of the date of closing and the tenth anniversary of the date of closing (each an "Adjustment Date"), the interest rate on the Note will be adjusted to a rate per annum equal to 96.8 percent of the then current rate of the Treasury Constant Maturities for five year obligations as reported by the Federal Reserve for the preceding month (the "Adjusted Rate"), and the interest rate so determined shall be effective commencing on the day following such Adjustment Date through and including the tenth anniversary of the date of closing following the first Adjustment Date and until the fifteenth anniversary of the date of closing (the "Final Maturity Date") following the second Adjustment Date. In no event shall the interest rate exceed eight and one-quarter percent (8.25%) per annum. The offer ofthe Lender to purchase the Note at a purchase price of$1,847,407 is hereby accepted. 2.2 The Note. The Note shall be dated as of the date of delivery to the Lender, shall be payable at the times and in the manner, shall bear interest at the rate, and shall be subject to such other terms and conditions as are set forth therein. 2.3 Execution. The Note shall be executed on behalf ofthe City by the signatures of its Mayor and City Manager and shall be sealed with the seal of the City; provided that the seal may be intentionally omitted as provided by law. In case any officer whose signature shall appear on the Note 1096247.1 3