No. 1904 authorizing the issuance of bonds of the SB Redevelopment District for the purpose of raising money for Redevelopment and Economic Development in the SEDA (TJX)

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supervisory expenses, capitalized interest and a debt service reserve for said bonds as set forth herein, together with the expenses in connection with or on account of the issuance of said bonds, the City acting for and on behalf of the Redevelopment District, shall make a loan in the aggregate principal amount not to exceed Nine Million and 00 /100 Dollars ($9,000,000.00). In order to procure funds for said loan, the Controller is hereby authorized and directed to have prepared and to issue and sell the negotiable bonds of the Redevelopment District, which Bonds shall be issued in the name of the City, for and on behalf of the Redevelopment District and which shall be designated "South Bend Redevelopment District Special Taxing District Bonds of 2002" in an aggregate principal amount not to exceed Nine Million and 00 /100 Dollars ($9,000,000.00) (the "Bonds "), and which amount (together with investment earnings thereon in the estimated amount of Five Hundred Thousand and 00 /100 Dollars ($500,000.00)) does not exceed the cost, as estimated by the Commission, of and redevelopment and economic development in the 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 Area, including the total cost of all reasonable and necessary architectural, engineering, legal, financing, accounting, advertising, bond discount and supervisory expenses, capitalized interest and a debt service reserve for the Bonds as provided herein, together with the expenses in connection with or on account of the issuance of the Bonds therefor. The Bonds shall not constitute a corporate obligation or indebtedness of the City, but shall constitute an obligation of the Redevelopment District. The Bonds, together with interest thereon, shall be payable out of the Tax Increment and such other revenues that may be available to the Commission for such purpose, and to the extent the Tax Increment and such other revenues are insufficient therefor, from the Special Tax. The Bonds shall be issued in fully registered form in the denomination of Five Thousand Dollars ($5,000) or an integral multiple thereof (the "Authorized Denomination ") not exceeding the aggregate principal amount of Bonds maturing in any one (1) year. The Bonds shall be numbered consecutively from 2002R -1 upwards and shall bear interest payable semiannually commencing January 1, 2003, or such later date as may be set forth in the Issuer's Certificate, defined herein, and each January 1 and July 1 thereafter, at a rate or rates not to exceed seven percent (7 %) (the exact rate or rates of interest to be determined by negotiated sale as set forth in Section 9 hereof) or such lower rate or rates for such maturities as may be determined by the President of the Commission and the Controller and set forth in a certificate of the City executed by the President of the Commission and the Controller prior to the sale of the Bonds, establishing certain provisions and details with respect to the Bonds (hereinafter referred to as the "Issuer's Certificate "). Interest shall be calculated on the basis of twelve (12) thirty (30) -day months for a three hundred sixty (360) -day year. The Bonds shall mature annually beginning on January 1, 2004, or such later date as may be set forth in the Issuer's Certificate, and thereafter on each January 1 through and including January 1, 2022, or such earlier final maturity date and in such annual principal amounts set forth in the Issuer's Certificate. -4- SBIMAN 1 130621v 1