No. 2074 authorizing the issuance of COSB redevelopment district adjustable rate demand tax increment revenue bonds (series 2004)(Erskine Commons Project) and other related matters

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Revenue Account shall be set aside in the following accounts within the Allocation Fund, in the following order of priority: (a) Bond Principal and Interest Account. There shall be set aside within Allocation Fund and deposited into the Bond Principal and Interest Account from the Project Tax Increment Revenue Account, to the extent available, an amount of money which, together with any money contained therein, is equal to (i) the aggregate amount of the principal and interest due during that bond year and any shortfall from previous bond years with respect to the Bonds and (ii) the aggregate amount of principal and interest due during that bond year and any shortfall from previous bond years with respect to the taxable economic development revenue bonds expected to be issued by the City in accordance with Ind. Code § 36 -7 -11.9 and 12 (the "EDC Bonds "), the proceeds of which are to be used by the Developer to finance a portion of the costs of the Project and in connection with the issuance of said EDC Bonds, the Commission will consider the adoption of a resolution pledging Project Tax Increment Revenues to the payment of principal of and interest on the EDC Bonds on a basis which is junior and subordinate to the Bonds, but senior to all other obligations or indebtedness. For this purpose, (i) a "bond year" shall be deemed to be a year from February 2 to and including the following February 1 and (ii) while either the Bonds or the EDC Bonds bear interest at a variable rate, the interest rate used to calculate the amount of interest due on such variable rate bonds shall be deemed to be the Maximum Rate (as defined in the Indenture for the Bonds, and for the EDC Bonds, as defined in the trust indenture securing the EDC Bonds). No deposit need be made into the Bond Principal and Interest Account 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 and the EDC Bonds during the remainder of that bond year. All money in the Bond Principal and Interest Account shall be used and withdrawn solely for the purpose of: (i) paying the interest on and the principal of the Bonds and the EDC Bonds as it shall become due and payable to the extent it is required therefor, (ii) reimbursing the issuer of the Letter of Credit and any alternate or replacement Letter of Credit for any payments of interest on or principal of the Bonds and, to the extent the Developer secures a letter of credit for the EDC Bonds (the 'EDC Letter of Credit "), reimbursing the issuer of the EDC Letter of Credit, and (iii) reimbursing the Developer for any payments made by the Developer to reimburse the issuer of the Letter of Credit or the EDC Letter of Credit, and any alternate or replacement Letter of Credit or EDC Letter of Credit for any payments of interest on or principal of the Bonds and the EDC Bonds, respectively (including accrued interest on any Bonds and EDC Bonds purchased or redeemed prior to maturity). Notwithstanding anything contained herein to the contrary, the obligation of the Commission to reimburse the Developer or the issuer of the Letter of Credit or the EDC Letter of Credit shall not extend beyond the term of the Bonds or the EDC Bonds. (b) General Account. The remaining amounts in the Project Tax Increment Revenue Account shall be deposited into the General Account of Allocation Fund and available only to do one (1) or more of the following: SBIMANI 188429v4 - 6 -