10118-11 Authorizing Sewage Works Revenue Bonds

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(c) Upon the consummation of the sale of the 2011 Bonds, the Controller is hereby authorized and directed to (i) to collect from the purchaser the purchase price for the 2011 Bonds; (ii) deliver the 2011 Bonds to the purchaser; and (iii) take the purchaser's receipt for the 2011 Bonds. The amount to be collected from the purchaser shall be the full amount which the purchaser has agreed to pay therefor, which shall be not less than 99% of the par value of the 2011 Bonds plus accrued interest to the date of delivery. (d) The 2011 Bonds, when fully paid for and delivered to the purchasers, shall be the binding special revenue obligations of the City, payable out of the Net Revenues of the City's Sewage Works to be set aside into the Sinking Fund as herein provided. SECTION 9. Use of Bond Proceeds. Any accrued interest and premium received at the time of delivery of the 2011 Bonds shall be deposited in the Debt Service Account of the Sinking Fund described below and shall be applied to the payment of interest on the 2011 Bonds on the earliest interest payment dates. The remaining proceeds received from the sale of the 2011 Bonds shall be deposited in a bank or banks which are legally qualified depositories of the funds of the City, in a special fund to be designated as the "City of South Bend, Indiana, 2011 Sewage Works Construction Fund No. 659" (the "Project Fund"). The numeric designation for the Project Fund may be changed from time to time at the discretion of the Controller. The proceeds deposited in the Project Fund shall be expended only for the purpose of paying the cost of the Project and the costs of issuance of the 2011 Bonds. Any balance remaining in the Project Fund after the completion of the Project, which is not required to meet unpaid obligations incurred in connection therewith or to pay the costs of issuance of the 2011 Bonds, may be used as provided in Indiana Code 5-1-13, as amended, or as otherwise permitted by law. SECTION 10. Official Statement and Continuing Disclosure Contract. (a) The Mayor and the Controller each are hereby authorized to deem final an official statement with respect to the 2011 Bonds, as of its date, in accordance with the provisions of Rule 15c2-12 of the U.S. Securities and Exchange Commission, as amended (the "Rule"), subject to completion as permitted by the Rule, and the City further authorizes the distribution of the deemed final official statement, and the execution, delivery and distribution of such document as further modified and amended with the approval of the Mayor or the Controller in the form of a final official statement. (b) If necessary in order for the purchaser or the underwriter of the 2011 Bonds to comply with the Rule, the Mayor and/or the Controller are hereby authorized to execute and deliver, in the name and on behalf of the City, (i) an agreement by the City to comply with the requirements for a continuing disclosure undertaking of the City pursuant to subsection (b)(5) or (d)(2) of the Rule, and (ii) amendments to such agreement from time to time in accordance with the terms of such agreement (the agreement and any amendments thereto are collectively referred to herein as the "Continuing Disclosure Contract"). The City hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Contract. The remedies for any failure of the City to comply with and carry out the provisions of the Continuing Disclosure Contract shall be as set forth therein. - 11 -