No. 2012 authorizing issuance of bonds for purpose of providing funds for refunding outstanding bonds and financing redevelopment projects in SBCAA (No. 1A) and paying incidental expenses in connection therewith and on account of issuance of bonds

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IL(a) Use of Bond Proceeds. The proceeds received from the sale of the 2003 Bonds shall be deposited as follows: (i) any accrued interest received at the time of delivery of the 2003 Bonds will be deposited to the 2003 Bond Principal and Interest Account of the Bond Fund as defined below and applied to payments on the 2003 Bonds on the first interest payment date; (ii) any amount of proceeds from the sale of the 2003 Bonds equal to the amount described in Section 9(b) below will be deposited to the 2003 Reserve Account of the Bond Fund as defined below and applied as described below; (iii) the amount necessary, including all interest due and payable thereon, to currently refund the Refunded Bonds on the date selected for redemption of the Refunded Bonds by the Fiscal Officer shall be deposited in a fund hereby created and designated as the "South Bend Allocation Area No. I Refunding Fund" (the "Refunding Fund"); and (iv) the remainder of the proceeds received from the sale of the 2003 Bonds shall be deposited in the fund hereby created and designated as the "South Bend Allocation Area No. lA Construction Fund" (the "Construction Account"). Any balance remaining in the Construction Account after the completion of the Project which is not required to meet unpaid obligations incurred in connection therewith and on account of the issuance of the 2003 Bonds may be used to pay debt service on the 2003 Bonds or otherwise used as permitted by law. (b) Bond Fund. There is hereby created a separate fund, designated as the "South Bend Redevelopment District Bond Fund" (the "Bond Fund") to be IL applied to the payment of the principal of and interest on the 2003 Bonds, and all other bonds of the District, and to no other purpose not allowed under Indiana Code Section 36- 7- 14 -27. There are hereby created and designated as separate accounts within the Bond Fund, designated as the "2003 Bond Principal and Interest Account" and the "2003 Reserve Account." (c) Investment. The funds and accounts described herein shall be deposited with a legally qualified depository or depositories for funds of the City as provided by law, and shall be accounted for separate and apart from all other funds of the Redevelopment District and the City and may be invested in accordance with applicable provisions of Indiana law. (d) Rebate Fund. There is hereby created a separate fund designated as the "South Bend Allocation Area No. IA Rebate Fund." If, in order to maintain the exclusion of interest on the 2003 Bonds from gross income for federal income tax purposes, the Commission is required to rebate portions of investment earnings to the United States government, the Commission shall compute or cause to be computed the amount required to be so rebated. The Commission shall deposit such amount, if any, in the Rebate Fund from any sources legally available to the Commission. The Commission shall pay required rebates from the Rebate Fund. Section 9. Flow of Funds. TIF Revenues and earnings thereon shall be made available as described herein for the payment of debt service on 2003 Bonds, and shall be held in trust for the benefit of the holders of all outstanding 2003 Bonds and Additional Bonds (as that term is defined in Section 12) (together, the "Tax Increment Bonds "), subject to the subordination and -12-