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Prior to the Mandatory Tender Date, this Bond shall bear interest at the rate of interest set forth
<br /> above. On and after the Mandatory Tender Date,this Bond shall bear interest at the interest rate computed
<br /> in accordance with the Indenture and announced by the Remarketing Agent, effective on and after the
<br /> Mandatory Tender Date.
<br /> So long as this Bond is registered in the name of a nominee of The Depository Trust Company in
<br /> New York("DTC"), payments of, premium,if any,and interest on this Bond shall be made as provided in
<br /> the Letter of Representation,as defined in the Indenture,and surrender of this Bond shall not be required for
<br /> payment of the redemption price upon a partial redemption of th is Bond. Until termination ofthe book-entry
<br /> only system pursuant to the Indenture, Bonds may only be registered in the name of DTC or its nominee.
<br /> It is hereby certified and recited: That the issuance of the Bonds and the Project(as defined below)
<br /> will promote the public welfare and carry out the purposes of the Minnesota Statutes Chapter 462C (the
<br /> "Act");that all acts,conditions and things required to be clone precedent to and in the issuance of this Bond
<br /> and the series of which it is a part have been properly done, have happened and have been performed in
<br /> regular and due time, form and manner as required by law; and that this Bond and the series of which it is
<br /> a part does not constitute a debt of the City within the meaning of any constitutional or statutory limitation.
<br /> This Bond shall not be valid or become obligatory for any purpose until it shall have been
<br /> authenticated by the execution of the certificate hereon endorsed by the Trustee under the Indenture.
<br /> This Bond is issued by the City to finance the development,acquisition,construction and equipping
<br /> of a multifamily rental housing development for elderly persons pursuant to the Act. This Bond is not a
<br /> general or moral obligation of the City,and neither the taxing power nor the full faith and credit of the City
<br /> is pledged to the payment of the Bonds or the interest thereon.All Bonds are special limited obligations of
<br /> the City. Principal of, premium, if any, and interest on all Bonds are payable solely out of the revenues
<br /> derived from the Loan Agreement or other amounts derived from the Trust Estate, including amounts
<br /> received under the Mortgage and from Net Proceeds (all as such capitalized terms are defined in the
<br /> Indenture). Neither the Bonds nor any of the agreements or obligations of the City relating thereto shall be
<br /> construed to constitute an indebtedness of the State, the County of Hennepin (the "County") or the City
<br /> within the meaning of any constitutional,home rule charter or statutory provisions whatsoever,nor coil stitute
<br /> or give rise to a general or moral obligation,a pecuniary liability or be a charge against the general credit or
<br /> taxing powers of the State, County or City.
<br /> This Bond is one of a duly authorized series of special, limited obligation Bonds in an authorized
<br /> aggregate principal amount of$ in integral multiples of$5,000 thereof,and numbered from R-1
<br /> upwards, and of like tenor and effect except as to serial number, denomination, interest rate, maturity and
<br /> right of prior redemption,all of which have been authorized by law to be issued and have been issued or are
<br /> to be issued for the purpose of funding a loan from the City to the Orono Senior Housing,LLC,a Minnesota
<br /> limited liability company(the"Borrower"),to finance development,acquisition,construction and equipping
<br /> of a single building containing initially approximately 62 independent senior rental units in the City of Orono
<br /> (the "Project"),all pursuant to a Loan Agreement,dated as of November 1, 2001 (the "Loan Agreement"),
<br /> between the City and the Borrower, a Resolution of the City Council of the City duly adopted October
<br /> 22, 2001 (the "Bond Resolution"), and an hndenture of Trust, dated as of November 1, 2001 (the
<br /> "Indenture"), duly executed and delivered by the City to the Trustee.
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