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TI Revenue Bonds 'I,I Revenue Notes Priority of Application of Tax Increment: The City intends to issue TI Revenue Bonds as follows: • Bonds will be either taxable or tax exempt as allowed by law in amounts that meet reasonable underwriting standards and upon terms then available in the public marketplace. • Bond proceeds may only be used to reimburse Eligible Costs incurred by the Redeveloper and certified by the City. • Bonds may be issued witl�out additional security in the fourth quarter of each year (subj ect to underwriting criteria) with respect to Minimum Improvements completed by December 31 of the prior year and assessed on 7anuary 2 of the current year. Issuance of the TI Revenue Bonds earlier will require security as determined by the underwriters of the Bonds. TI Revenue Bonds payable from tax increment generated by the hazardous substance subdistrict proposed to the created will be issued as early as possible consistent with underwriting standards. • The 5% City administration fee will be subordinated to provide additional coverage for issuance of the TI Revenue Bonds. � The TI Revenue Bonds will be issued on a panty basis, will be payable only from tax increment and will not be a general obligation of the City, County, State or any other political subdivision. The following terms will be applicable to the TI Revenue Note{s): • Principal amount �+��=11 be determined and Notes issued upon certification of Eligible Costs in accordance with a schedule set forth in the Redevelopment Agreement to reimburse Eligible Costs incurred by the Redeveloper. • Term will �e coterminous with duration of the TIF district: � Interest rate e� ��'t�+ �� [•�r�rirtir�rf,�initiallV set at 7%, exce�t that on the Reconciliation Date the rate shall be reset to the .�� of 10-vear TreasurY Notes plus 2.8% (5�biect to a maximum of 9.5%l. � 95% of available tax increment will be pledged, • The pledge of tax increment for the TI Revenue Notes will be subordinated to the pledge of tax increment for any City Bonds, the TI Revenue Bonds and the City's admin. fee. • Any amounts unpaid at the maturity date of the TI Revenue Notes will be deemed paid in full. Available tax increment will be applied in the following priority: 1. Any public improvement or special assessment bonds which the City has elected to issue 2. TI Revenue Bonds