Everett Public Facilities District 8/23/2018

Repayment Deficiency Loans shall bear interest from the date of each Repayment Deficiency Loan on unpaid principal at a rate equal to the then effective interfund loan rate of the City, with payments to be applied first to interest and then to principal. (d) Scoreboard Loan. Pursuant to the 2015 Scoreboard Interlocal Agreement, the City has loaned the District the sum of Six Hundred Sixty-Five Thousand Dollars ($665,000) (the "Scoreboard Loan"). The Scoreboard Loan bears interest on unpaid principal from its date at a rate equal to the then effective interfund loan rate of the City, with payments to be applied first to interest and then to principal. (e) Contingent Loans with respect to 2018 Bonds. (1) Agreement to Loan. The City agrees to lend to the District at the times and in the amounts set forth in this Section 2.01(e), amounts not exceeding the amounts sufficient, together with the District's 2018 Bond Revenue Sources, to pay all debt service on the 2018 Bonds. Each advance made by the City pursuant to this Section 2.02(e) shall be a loan to the District(each a"2018 Bond Payment Loan"). The aggregate principal amount of 2018 Bond Payment Loans to be made by the City pursuant to this Subsection (e) shall not exceed the original principal amount of 2018 Bonds plus all interest accrued to and to accrue on the 2018 Bonds. (2) City Budget. Upon receipt of the notice from the District provided for in Section 2.02(b)(2), the City shall take such action as is necessary to budget the amounts required to provide for 2018 Bond Payment described in subsection(3) below. If the need to budget for 2018 Bond Payment Loans by the City to the District was not reasonably foreseeable at the time the City prepared its annual budget, the City shall budget for such loans in sufficient time to provide for the 2018 Bond Payment Loans described in subsection(1). (3) Timing of Loan Disbursement. (A) For as long as the 2018 Bonds remain outstanding, if the balance on hand in the 2018 Bond Account on the fifteenth (15th) day prior to an Interest Payment Date is not sufficient to pay the interest coming due on the upcoming Interest Payment Date, then the City shall make a 2018 Bond Payment Loan to the District no later than the ninth (9th) day prior to the upcoming Interest Payment Date in an amount sufficient to pay the interest on the 2018 Bonds coming due on the upcoming Interest Payment Date. (B) For as long as the 2018 Bonds remain outstanding, if the balance on hand in the 2018 Bond Account on the fifteenth (15th) day prior to a Principal Payment Date is not sufficient to pay the principal maturing or subject to redemption on the upcoming Principal Payment Date, then the City shall make a 2018 Bond Payment Loan to the District no later than the ninth (9th)day prior to the Principal Payment Date in an amount sufficient to pay the principal of the 2018 Bonds maturing or subject to mandatory redemption on the upcoming Principal Payment Date. -9- 501534419 v3