32-17 Economic Development Revenue Bonds (Studebaker Project)

Home Browse Search

(ii) It is familiar with the City; it has received such information concerning the City, the Bonds and the TIF Revenues (as defined in the Indenture) as it deems to be necessary in connection with investment in the Bonds. It has received, read and had an opportunity to comment upon and has consented to the provisions of the Indenture, the Bonds and the Financing Agreement. Prior to the purchase of the Bonds, it has been provided with the opportunity to ask questions of and receive answers from the representatives of the Issuer concerning the terms and conditions of the Bonds, the tax status of the Bonds, legal opinions and enforceability of remedies, the security therefor, and property tax reform, and to obtain any additional information needed in order to verify the accuracy of the information obtained to the extent that the Issuer possesses such information or can acquire it without unreasonable effort or expense. We are not relying on Ice Miller LLP for information concerning the financial status of the Issuer or the ability of the Issuer to honor its financial obligations or other covenants under the Bonds,the Indenture or the Financing Agreement. (iii) It is acquiring the Bonds for its own account with no present intent to resell; and will not sell, convey, pledge or otherwise transfer the Bonds without prior compliance with applicable registration and disclosure requirements of state and federal securities law. (iv) It has investigated the security for the Bonds, including the availability of TIF Revenues, to its satisfaction, and it understands that the principal on the Bonds is payable solely from TIF Revenues. It further understands that the Issuer does not have the power or the authority to levy a tax to pay the principal of or interest on the Bonds. (v) It understands that under current law the City's collection of the TIF Revenues may be limited by operation of IC 6-1.1-20.6, which provides taxpayers with a tax credit for all property taxes attributable to difference classes of property in an amount that exceeds certain percentages of the gross assessed value of that property. It understands that the Issuer may not levy a property tax or borrow money to make up any shortfall due to the application of this tax credit. (vi) It recognizes that: (a) the opinions it has received express the professional judgment of the attorneys participating in the transaction as to the legal issues addressed herein; (b) by rendering such opinions, the attorneys do not become insurers or guarantors of (i) that expression of professional judgment; (ii) the transaction opined upon; or (iii) the future performance of parties to such transaction; and (c) the rendering of the opinions does not guarantee the outcome of any legal dispute that may arise out of the transaction. (vii) It understands that the City has no continuing disclosure obligation on the Bonds. (viii) It understands that interest on the Bonds is taxable for federal income tax purposes. -2- I\11862988.2