No. 2805 authorizing the issuance of revenue bonds of the South Bend redevelopment district for the purpose of raising money for redevelopment/economic development in the CDA

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7 �wj Commission and the department hereby covenant and agree to cause to be kept and maintained. On the first January 15 or July 15 following the date of issuance of the Bonds, and each January 15 and July 15 thereafter, all monies in the Revenue Fund shall be set aside in the following order of priority: a. Bond Principal and Interest Fund. There shall be set aside and deposited into the Bond Principal and Interest Fund from the Revenue Fund, to the extent available, an amount of money which, together with any which, together with any money contained therein, is equal to the aggregate amount of the principal and interest due during that bond year with respect to the Bonds. For this purpose, a "bond year" shall be deemed to be a year to and including January 15. No deposit need be made into the Bond Principal and Interest Fund if the amount contained therein is at least equal to the aggregate amount of principal and interest due and payable with respect to the Bonds during the remainder of that bond year. All money in the Bond Principal and Interest Fund shall be used and withdrawn solely for the purpose of paying the interest on and the principal of the Bonds as it shall become due and payable to the extent it is required therefor (including accrued interest on any Bonds purchased or redeemed prior to maturity). b. Reserve Fund. After the issuance of the Bonds, there shall be set aside and deposited in the Reserve Fund from the Revenue Fund an amount of money that shall be required to maintain the Reserve Fund in the full amount of the Debt Service Reserve Requirement (as defined below). No deposit need be made in the Reserve Fund so long as there shall be on deposit therein a sum equal to the least of (i) the maximum annual debt service on the Bonds, or (ii) one and one - quarter (1 -1/14) times the average annual debt service on the Bonds, or (iii) ten percent (10 %) of the proceeds of the Bonds, within the meaning of Section 148(d) of the Internal Revenue code of 1986, as amended (the "Code ") (the "Debt Service Reserve Requirement "). Any portion of the Debt Service Reserve Requirement shall be deemed to be satisfied if there is on deposit in the Reserve Account any surety bond, insurance policy, guaranty, letter of credit or other credit facility in any amount equal to such portion, the issuer of which credit facility is rated "AAA" is Standard & Poor's Ratings Group or "Aaa" by Moody's Investor Service at the time the credit facility is issued. All money in the Reserve Fund shall be used and withdrawn by the City solely for the purpose of making deposits into the Bond Principal and Interest Fund, in the event of any deficiency at any time in such account, or for the purpose of paying the interest on or principal of or redemption premiums, if any, on the Bonds in the event that no other money is lawfully available therefor, except that so long as there is no default hereunder, any amount in the Reserve Fund in excess of the Debt Service Reserve Requirement shall be withdrawn from the Reserve Fund and deposited in the Bond Principal and Interest Fund. Money in the Reserve Fund shall also be available to the final payments of interest and principal on the Bonds. The PSCDA Revenues and the COIT Revenues shall be irrevocably pledged for the purpose set forth in this Section 4. BDDB01 6406657v2 -15-