No. 2097 pledging certain tax increment revenues to the payment of the COSB, taxable economic development revenue bonds, Series 2004 (Erskine Village Project)

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A required by Ind. Code § 36- 7 -14 -26 as a result of the Project (the 'Project Tax Increment Revenues ") to the payment of principal of and interest on the Bonds (the 'Pledge "); and WHEREAS, the Commission anticipates that sufficient Project Tax Increment Revenues will be available to the Commission to pay the principal of and interest on the Bonds and; WHEREAS, on July 18, 2003, the Commission adopted Resolution No. 1988 pledging tax increment revenues of the South Side Development Area to the payment of the Bonds, which the Commission now desires to rescind and repeal in favor of the Pledge described herein to more effectively provide for the development and redevelopment of the Area; and WHEREAS, neither the City nor the Commission shall have any obligation with respect to the payment of principal of or interest on the Bonds other than the payment of the Project Tax Increment Revenues; NOW, THEREFORE, BE IT RESOLVED, by the City of South Bend, Indiana, Redevelopment Commission as follows: 1. The Commission hereby pledges the Project Tax Increment Revenues to the payment of the principal of and interest on the Bonds for a period up to but not exceeding twenty -five (25) years from the date of the issuance of the Bonds. Such Pledge shall terminate at the earliest of the final payment on the Bonds or the conclusion of said twenty -five (25) year period. 2. There is hereby created and established a KSK- Scottsdale Mall, L.P. Project Principal and Interest Account of the Allocation Fund (the 'Principal and Interest Account "). 3. Project Tax Increment Revenues received by the Commission shall be deposited into the Principal and Interest Account and shall be appropriated for the payment of the principal of and interest on the Bonds. Project Tax Increment Revenues received in excess of the amount necessary to pay (i) the principal of and interest on the Bonds currently or scheduled to be due and expected to be paid from such revenues and (ii) to pay any amount of principal which was not previously paid when due or interest accruing thereon as a result an insufficiency in Project Tax Increment Revenues in a prior year or years do not remain pledged and may be used by the Commission for any purpose set forth in Section 39 of the Act; provided however, that the Commission may only use such excess Project Tax Increment Revenues to the extent that the balance of the Principal and Interest Account exceeds the amount necessary to satisfy all principal and interest payments on the Bonds that are currently due, past due or scheduled to be due through the final maturity of the Bonds or any refunding bonds. Only Project Tax Increment Revenues are hereby pledged for payment of the Bonds. This resolution shall not be construed as pledging tax increment revenues of the Area generally. SBIMANI 192467v1 - 2 -