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loan to the Agency in such aggregate principal amount for the purpose of financing such additional redevelopment activities (the "Loan") to be made by the Authority to the Agency pursuant to a Loan Agreement, dated as of January 1, 2003 by and between the Agency and the Authority (the "Loan Agreement"). As a condition precedent to the issuance of the Authority Bonds, section 6586.5 of the California Government Code requires that the Agency approve the proposed financing by the Authority and that the Agency make certain findings with respect to such financing, and section 6586.5 further requires that such approval be given and findings be made only after noticed public hearing thereon. The Agency proposes to sell the Bonds to the Authority which will concurrently sell the Bonds to Salomon Smith Barney, as purchaser of the Bonds (the "Underwriter"), all as shall be provided in a pumhase contract in customary form (the "Purchase Contract"). The Agency will cause to be prepared an Official Statement describing the Bonds (the "Official Statement"). The Agency, with the aid of its officers and staff, have reviewed the Loan Agreement; Section 2. Approval of Loan. The Agency hereby authorizes and approves the Loan to be made to the Agency by the Authority from the proceeds of the Authority Bonds in and amount not to exceed $25,000,000 at an interest rate not to exceed 6 ¼. The Loan shall be made pursuant to and in accordance with the terms of the Loan Agreement. The Agency hereby approves the Loan Agreement in substantially the form on file with the Secretary together with any additions thereto or changes therein (including but not limited to the principal amount of the Loan) deemed necessary or advisable by the Executive Director or an authorized representative of the Executive Director, whose execution thereof shall be conclusive evidence of approval of any such additions and changes. The Executive Director is hereby authorized and directed to execute, and the Secretary is hereby authorized and directed to attest and affix the seal of the Agency to, the final form of the Loan Agreement for and in the name and on behalf of the Agency. The proceeds of the Loan shall be applied by the Agency for the purposes and in the amounts as set forth in the Loan Agreement. The Agency hereby authorizes the delivery and performance of the Loan Agreement. Section 3. Amendment of Loan Agreement. The Loan Agreement shall be amended to incorporate the final terms of the sale of the Authority Bonds pursuant to the Purchase Contract and the resulting Loan payments to be made by the Agency to the Authority. Section 4. Preparation and Submission of Official Statement. If the Agency is unable to timely issue and deliver the Agency Bonds, the Agency hereby directs Agency staff, in cooperation with Authority staff, to cause the preparation of the Purchase -2-