Everett Public Facilities District 8/23/2018

(4) Terms of 2018 Bond Payment Loan. Each 2018 Bond Payment Loan shall bear 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. Section 2.02. Obligations of the District. (a) Application of Annual Contribution by District. The Annual Contribution and the City Hotel/Motel Tax Contribution received by the District shall be applied to the extent needed to pay debt service on the 2018 Bonds in accordance with the priorities set forth in Article III. (b) Payment of Debt Service on the 2014 PFD Refunding Bonds and Repayment of Repayment Deficiency Loans. The District agrees to pay to the City on or prior to each date on which a payment of interest on the 2014 PFD Refunding Bonds is due or the date on which a payment of principal of the 2014 PFD Refunding Bonds matures or is subject to redemption prior to maturity the dollar amount of each such principal or interest obligation. To the extent that each such payment is not paid when due and becomes a Repayment Deficiency Loan, each Repayment Deficiency Loan shall be repaid by the District to the City. The District hereby agrees to repay each Repayment Deficiency Loan at the times provided and in accordance with the priorities provided in Article III. (c) Repayment of Scoreboard Loan. The District hereby agrees to repay the Scoreboard Loan to the City at the times provided and in accordance with the priorities provided in Article III. (d) Application of 2018 Bond Payment Loans. (1) Payment of Debt Service on 2018 Bonds. The District agrees to apply 2018 Bond Payment Loans only for the purpose of paying debt service on the 2018 Bonds. (2) Preliminary Notice to City of Potential Need for 2018 Bond Payment Loan. No later than March 1 and September 1 of each year, the District shall review the balance on hand in the General Revenue Fund, including anticipated receipt of District Revenues anticipated to be received in order to inform the City whether any City budgetary action may be required prior to the upcoming Principal Payment Date and/or Interest Payment Date. In the event that the District anticipates that 2018 Bond Revenue Sources will not be available to make the required deposit(s),the District shall provide prompt notice to the City of such deficiency. (3) Final Notice to City of Need for 2018 Bond Payment Loan. In the event that the balance on hand in the 2018 Bond Account as of the fifteenth (15th)day prior to each Principal Payment Date and/or Interest Payment Date is not sufficient to pay the principal of the 2018 Bonds maturing or coming due on the upcoming Principal Payment Date or the interest coming due on the upcoming Interest Payment Date, the District shall notify the City in writing no later the (fourteenth) 14th day prior to the Interest Payment Date and/or Principal Payment Date, as the case may be. -10- 501534419 v3