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City from time to time pending the receipt of revenues and to pay the costs of capital <br /> expenditures of the City that have been approved by the Council as part of the City's capital <br /> budget pending the receipt of other funds to pay such costs, including other tax exempt <br /> obligations that may be issued to provide long term financing for such capital expenditures and <br /> to pay costs of issuance. <br /> Section 3. Purpose, Authorization and Description of Notes. The revolving line of <br /> credit with the Bank shall be evidenced by two obligations. For the purpose of funds to pay the <br /> operating expenses of the City from time to time pending the receipt of revenues, the City shall <br /> issue and sell a promissory note to the Bank. The Note issued to evidence the operating line of <br /> credit shall be designated the "City of Everett, Washington, Limited Tax General Obligation <br /> Note, 2002A (Revolving Line of Credit-Operations)," shall be dated as of the date of its delivery <br /> to the Bank (the "Delivery Date"), shall be fully registered as to both principal and interest, shall <br /> be in the denomination of not to exceed $5,000,000. The Note issued to evidence the capital line <br /> of credit shall be designated the "City of Everett, Washington, Limited Tax General Obligation <br /> Note, 2002A (Revolving Line of Credit-Capital)," shall be dated as of the Deliver Date, shall be <br /> fully registered as to both principal and interest, shall be in the denomination of not to exceed <br /> $5,000,000. The Outstanding Principal Balance of both Notes (when combined) may not at any <br /> time exceed $5,000,000, and each Note shall so reflect this limitation. No Drawing shall be <br /> permitted under either Note if the effect of such Drawing would be to permit the aggregate <br /> Outstanding Principal Balance of the Notes to exceed $5,000,000. The Notes shall be issued and <br /> delivered as of the Delivery Date thereof to the Bank and shall mature on the Maturity Date. <br /> Each Drawing under the Notes shall bear interest (on unpaid principal) from the date of <br /> the Drawing until repaid at a fully floating variable per annum rate equal to 55% of the Prime <br /> -4- P\CMW\CMW54B 01/11/20 <br />