Authorizing the execution and delivery of a memorandum of agreement between the City and Diversified Group, and Indiana Partnership

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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 mortgage 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 Diversified. 2. That a primary inducement to Diversified in locating the Project within the City is the intent of the City to finance the cost of acquiring and construct- ing the Project through the issuance of its revenue bonds pursuant to the provisions of the Act. 3. That it is desirable that Diversified rather than the City arrange for the construction of the Pro- ject in order to insure that the Project will conform to the requirements of Diversified for whose use the Project is designed. 4. That this Agreement shall inure to the benefit of the parties hereto and their respective successors and as- signs; provided, however, that in the event the bonds are not issued or sold as contemplated herein, there shall be no liability on the part of the City or of Diversified or of any of their officers or employees for such non - issuance or non - delivery. 5. That this Agreement may be executed in separate counterparts, all of which shall be deemed a single instru- ment. IN WITNESS WHEREOF, the CITY OF SOUTH BEND, INDIANA, by and through its Common Council, has caused its corporate name to be hereunto subscribed by Peter J. Nemeth, its duly authorized Mayor, and attested under its official seal by Irene K. Gammon, its City - 4 -