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WHEREAS, the Commission has been asked to pledge Tax Increment Revenues which may be available following payment of the Prior Obligations and Future Obligations (as defined herein) (such remaining amount of Tax Increment Revenues being referred to herein as "Pledged Tax Increment "); and WHEREAS, the Commission anticipates that sufficient Pledged Tax Increment will be available to the Commission to pay the principal of and interest on the EDC Bonds when due and desires to pledge the Pledged Tax Increment to the payment of principal of and interest on the EDC Bonds as set forth herein; and WHEREAS, the pledge of the Pledged Tax Increment shall be junior and subordinate to the Prior Obligations and also junior and subordinate to all other obligations or indebtedness incurred by the Commission pursuant to Sections 25.1 and 25.2 of the Act, if any, which by their terms are secured by or paid from Tax Increment Revenues ( "Future Obligations ") and WHEREAS, neither the City nor the Commission shall have any obligation with respect to the payment of principal of or interest on the EDC Bonds other than from the Pledged Tax Increment if and when available; NOW, THEREFORE, BE IT RESOLVED, by the City of South Bend, Indiana, Redevelopment Commission as follows: 1. The Commission hereby pledges the Pledged Tax Increment to the payment of the principal of and interest on the EDC Bonds for a period up to but not exceeding three (3) years from the date of the issuance of the EDC Bonds. Such pledge shall terminate at the earliest of the final payment on the EDC Bonds or the conclusion of said three (3) year period and shall be junior and subordinate to the Prior Obligations and to Future Obligations, if any. 2. The principal and interest account of the Allocation Fund, previously established and continued by the Prior Resolutions, is hereby continued with respect to the Pledged Tax Increment. 3. Tax Increment Revenues received by the Commission shall be deposited into the Principal and Interest Account, as set forth in the Prior Resolutions, for the payment of the Prior Obligations and Future Obligations, if any, and any remaining amounts (which shall constitute Pledged Tax Increment as defined herein), after setting aside Tax Increment Revenues for the payment of amounts owed on the Prior Obligations and the Future Obligations, if any, shall be appropriated for the payment of the principal of and interest on the EDC Bonds. The pledge of the Pledged Tax Increment shall be junior and subordinate to the Prior Obligations and the Future Obligations, if any. Tax Increment Revenues received in any year in excess of the amount necessary to pay the amounts due that year on the Prior Obligations, the Future Obligations, if any, and the EDC Bonds do not remain pledged and may be used by the Commission, in accordance with the Prior Resolutions, for any purpose set forth in Ind. Code § 36-7-14-39, -2- BDDB01 6825523v]