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(d) The Borrower may prepay all or any part of the Loan at any time without premium or penalty.Amounts repaid may not be reborrowed. (e) If any payment of principal is not paid within ten(10)days after the due date,then such overdue amount shall,without limiting the rights of the Lender,bear interest at the rate of the lesser of twelve percent (12%) per annum or the maximum rate permitted under applicable law,which shall accrue from the due date until paid. (f) Notwithstanding anything to the contrary contained in this Agreement,the entire outstanding principal balance of the Loan,and all interest accrued thereon,shall be payable on fifth anniversary of the Closing Date. Section 1.3 Purpose of the Loan. The purpose of the Loan is to facilitate the acquisition by Borrower of the Project and the improvement, maintenance and operation of the Project by Borrower. Section 1.4 Use of Proceeds. Unless alternative use of funds is approved in writing by the Lender,the Borrower shall use the proceeds of the Loan and any investment income derived therefrom(the"Loan Proceeds")exclusively for the purposes set forth in Section 1.3. Section 1.5 Program Related Investment. Consistent with Code Section 4944(c) and Treasury Regulations Section 53.4944-3: (a) The primary purpose of the Loan is to accomplish one or more of the purposes of the Lender described in Code Section 170(c)(2)(B); (b) No significant purpose of the Loan is the production of income or the appreciation of property;and (c) No purpose of the Loan is to accomplish one or more of the purposes described in Code Section 170(c)(2)(D). It is intended that the Loan will significantly further the accomplishment of the Lender's exempt purposes.The Lender would not make the Loan but for this relationship between the Loan and the accomplishment of the Lender's exempt purposes. ARTICLE II REPRESENTATIONS AND WARRANTIES The Borrower represents and warrants to the Lender as of the Closing Date that: Section 2.1 Organization and Powers. (a)The Borrower is a municipal corporation, duly created and validly existing,in good standing pursuant to the constitution and statutes of the State of Arkansas. (b) The Borrower has full corporate power and authority and all necessary licenses and permits required as of the date hereof to own and operate its properties,to carry on its activities,to enter into this Agreement,to acquire,own and operate the Project,and to carry out and consummate all of its obligations under this Agreement.The Borrower has the full corporate 3