Resolutions - Jersey City

Authority Resolution) and a suffcient additional amount to insure that the principal amount ofProgram Bonds issued to pay the Costs of Issuance of the Program Bonds are repaid. Interest ispayable to the Improvement Authority at the principal corporate trst office of the Trustee.Overdue principal of, and, to the extent permitted by law, interest on this Bond shall bearinterest, payable on demand, at the Default Rate (as defined in the Authority Resolution). Uponthe occurrence of an Event of Default by the Improvement Authority under the terms of theAuthority Resolution in connection with the Program Bonds, or in the event of default in anypayments of principal of or interest on this Bond which are not cured by the issuer of the CreditFacility (the "Bank") (as such terms are defined in the Authority Resolution) in its sole andabsolute discretion, then the Trustee may by notice to the City accelerate the principal amount ofthis Bond all as provided in the Authority Resolution. The Bank, pursuant to the AuthorityResolution, may elect to prepay such defaulted amounts on behalf of the City and to acceleratethe City's payment obligation under the terms of this Bond. Immediately upon any suchacceleration, the Trustee, on behalf of the Improvement Authority shall assign this Bond to theissuer of the Credit Facility by executing the Assignment on the reverse hereof. The interest rateon this Bond, from the date of such assignent, shall be (i) for the first 30 Dollar Days ofAdvances (as such terms are defined in the' Letter of Credit and Reimbursement Agreement)equal to the Bank's Prime Rate in effect from time to time, and (ii) for all advances thereafter,equal to one percent per annum above the Prime Rate in effect from time to time (the Bank'sPrime Rate shall be the rate of interest announced publicly or quoted by the Bank from time totime as the Bank's prime rate and as a base rate for calculating interest on certain loans). TheCity further agrees to repay its proportionate share of the Costs of Issuance (calculated pursuantto the terms of the Authority Resolution as if this Bond were prepaid in full on the date of suchassignent). Any amounts paid by the Bank on behalf of the City shall be repaid to the Bank ondemand with interest thereon at the Default Rate and such payments by the Bank shall not in anymanner decrease or satisfy the obligations of the City. The principal of and interest on this Bondmay also be accelerated by the Trustee by notice to the City if one or more of the following shallhave occured or be continuing:1) Any misrepresentation of the City in the Bond Purchase Agreement with theImprovement Authority;2) Any bankptcy or act of insolvency of the City;3) Any acceleration of the Improvement Authority's Program Bonds;4) Any other Events of Default which are provided for in the ImprovementAuthority's Resolution;5) Any default in the obligations of the City hereunder;6) Any other event which is set forth in Section 3.02(b )(viii) of the Letter of Creditand Reimbursement Agreement.The principal of and interest on this Bond are payable in lawful money of the UnitedStates of America and in immediately available funds.This bond is one of the duly authorized issue of bonds and is issued pursuant to the LocalBond Law of the State of New Jersey, the Municipal Qualified Bond Act of the State of NewJersey, and is one of the General Improvement Bonds referred to in a resolution ofthe City dulyadopted on September _' 2009 and entitled, "RESOLUTION PROVIDING FOR THE