Authorizing the Execution and Delivery of a memorandum of intent between the City of South Bend, IN, and Romana R. Primus, M.D.

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2. That the City intends, subject in all respects to the provisions and requirements of the Act and to a sale of the bonds on terms satisfactory to the Borrower, to authorize, issue, sell and deliver its revenue bonds, to be issued in one or more series (in an aggregate principal amount of approximately $331,000.00, which amount will be fixed by ordinance of the City at a later date and agreed to by the Borrower, but not to exceed the cost of the Project and expenses incidental thereto as estimated at the time of the issuance of the bondsl and apply the proceeds therefrom to the payment of the cost of the Project, provided that prior to the issuance and delivery of such revenue bonds there shall have been entered into between Borrower and the City appropriate financing agreements upon terms which will comply with the provisions of the Act and which will provide for the payment by the Borrower of amounts which will be sufficient to enable the City to pay the principal of and interest on such revenue bonds. 3. That the financing of the Project by the City is for a proper public corporate purpose and that the financing thereof for the Borrower is necessary to implement the public purposes enumerated in the Act. B. Borrower represents and intends: 1. That the Project will result in increased employment in the City. 2. That if the proposed revenue bonds (including the rate of interest thereon) of the City are satisfactory to Borrower, it will enter into financing agreements with the City upon terms which will be sufficient to pay the cost of the Project and expenses incidental thereto, as evidenced by such revenue bonds to be issued for the account of the Project, and will enter into such appropriate financing agreements with the City with regard to the foregoing prior to the issuance and delivery of any such revenue bonds by the City. 3. That Borrower intends during the term of any such financing agreements to cause the Project to be used or occupied pri- marily for use as medical office facilities. C. It is further recognized and intended between the parties hereto as follows: 1. That the revenue bonds to be issued by 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 provi- sion, 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 taxing power of the City to pay said bonds or the interest thereon. The principal of, and the premium, if any, and the 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 Borrower.