Inducement Resolution relating to the authorizing of a memorandum of intent between the City of South Bend and Claeys Realty

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the City will never constitute an indebtedness of the City or a loan of the credit thereof within the meaning of any constitutional or statutory provisions, and such fact shall be plainly stated on the face of each of said bonds. No holder of any of said bonds shall ever have the right to compel any exercise of the taking power of the City to pay said bonds or the in- terest thereon. The principal of, and the premium, if any, and interest on, such revenue bonds to be issued to finance the cost of the Project shall be secured by a pledge to a trustee acting under an indenture of trust for the benefit of the holders of said bonds, or by a pledge directly to the holders of said bonds, of the revenues and income derived by the City from the Project and may be further secured by a lien on the Project, and shall be additionally secured by a pledge to said trustee or the holders of said bonds of the aforesaid financing agreements between the City and the Developer. 2. That a primary inducement to the De- veloper in locating the Project within the limits of the City of South Bend, Indiana, is the intent of the City to finance the cost of the Project through the issuance of its revenue bonds pursuant to the provi- sions of the Act. 3. That it is desirable that the Developer rather than the City arrange for the acquisition and construction of the Project in order to insure that the Project will conform to the requirements of the De- veloper, for whose use the Project is designed. 4. That this Agreement shall inure to the benefit of the parties hereto and their respective -4-