No. 2153 authorizing issuance of bonds of the SB redevelopment district for purpose of raising money for certain local public improvements in downtown medical services district allocation area

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(iv) All principal payments on the Parity Bonds shall be payable on February 1, and all interest payments on the Parity Bonds shall be payable on February 1 and August 1. The Commission shall approve and confirm the findings and estimates set forth in the above - described certificate in any supplemental resolution authorizing the issuance of the Parity Bonds. (b) Except as otherwise provided in this Section, so long as any of the Bonds are outstanding, no additional bonds or other obligations pledging any portion of the Tax Increment shall be authorized, executed or issued by the City acting for and on behalf of the Redevelopment District except such as shall be made subordinate and junior in all respects to the Bonds, unless all of the Bonds are redeemed and retired coincidentally with the delivery of such additional bonds or other obligations, or, as provided in Section 15, funds sufficient to effect such redemption are available and set aside for that purpose at the time of issuance of such additional bonds. SECTION 6. Proceeds received from the sale of the Bonds shall be deposited as follows: (a) All accrued interest received at the time of the delivery of the bonds plus such additional amount, if any, as the Commission shall determine with the advice of its financial advisor to be used for capitalized interest shall be placed in the Bond Principal and Interest Account; and (b) For the Bonds, an amount equal to the Debt Service Reserve Requirement shall be placed in the Reserve Account unless the Commission determines to (i) fund the Debt Service Reserve Requirement over a five (5) year period or (ii) satisfy the Debt Service Requirement with a surety bond or other credit facility as provided by Section 4(b) hereof; and (c) The remaining proceeds from the sale of the Bonds shall be deposited in a special fund to be designated as the "South Bend Redevelopment District DMSD Allocation Area Capital Fund" (the "Capital Fund "). SECTION 7. Proceeds of the Capital Fund shall be deposited with a legally qualified depository or depositories for funds of the City as now provided by law and shall be segregated and kept separate and apart from all other funds of the City and may be invested as permitted by law. The proceeds in the Capital Fund shall be expended only for the purpose of paying the cost of redevelopment and economic development in the Allocation Area, together with a sum sufficient to pay the estimated cost of all expenses reasonably incurred in connection with the redevelopment and economic development of the Allocation Area, including the total cost of all reasonable and necessary architectural, engineering, legal, financing, accounting, advertising, bond discount and supervisory expenses, and expenses the Commission may be required, together with the expenses in connection with or on account of the issuance of the Bonds. Any balance or balances remaining in the Capital Fund after the completion of redevelopment and economic development in the Allocation Area which are not required to meet -19- 13DDB01 40102160