32-17 Economic Development Revenue Bonds (Studebaker Project)

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ARTICLE IV. APPLICATION OF SERIES 2017 BOND PROCEEDS Section 4.1. Use of 2017 Bond Proceeds by Issuer. Concurrently with the execution and delivery hereof, the Issuer is issuing the Series 2017 Bonds and is depositing the proceeds from the sale thereof with the Trustee for the use of the Developer by making the deposits and payments specified in Section 3.1 and 4.3 of the Indenture; provided such proceeds shall be used solely in connection with the development of the Project and advanced and used solely in accordance with the terms of this Financing Agreement and the Indenture. Section 4.2. Use of TIF Revenues. Issuer covenants as follows: (a) Upon receipt of Written Request of the Developer pursuant to Section 4.3(b) of the Indenture, the Trustee shall distribute sums for Costs of Construction of the Project as those costs are incurred until the Trustee has distributed in the aggregate total amount of Three Million Five Hundred Thousand Dollars ($3,500,000). All of the foregoing is for the benefit of the holders of the Series 2017 Bonds, to the end that industry and the economy may be diversified and job opportunities promoted and retained, and to secure the Series 2017 Bonds by pledging the TIF Revenues to the Trustee. (b) The Issuer covenants that, to the extent collected, it will timely pay the TIF Revenues to the Trustee as provided in Section 4.4 of the Indenture, provided that the Issuer shall have no other obligation with respect to the Series 2017 Bonds. Section 4.3. Estoppel Certificate. The Issuer shall, upon reasonable request of the Developer, provide the Developer (or such person as the Developer requests) with a certificate stating that an Event of Default by Developer has not occurred hereunder as of the date of such certificate,provided that such state of facts are true. (End of Article IV) - 13 - 1\11853148.2