9645-05 Authorizing the city to issue its adjustable rate demand for the Stanley Clark School

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The principal of, premium, if any, and interest on the Bonds shall be secured by a letter of credit obtained by the Borrower and payable solely from payments made by the Borrower under the Borrower's Notes (as defined herein) or from any other collateral pledged by the Borrower for such purpose. The City is to bear no expense in connection with the issuance and sale of said revenue bonds except as provided for herein and all expenses in connection thereto which are incurred by the City shall be reimbursed to the City by the Borrower. The South Bend Economic Development Commission (the "Commission") has rendered its Report regarding the proposed financing of the costs of the Projects. After a duly noticed public hearing conducted on October 21, 2005, the Commission adopted a resolution (the "Resolution"), which Resolution has been previously transmitted to the Clerk of the City, finding that the financing of the Projects, as described in the application submitted by the Borrower to the Commission, complies with the purposes and provisions of the Act, and will be of benefit to the health and welfare of the City and its citizens, and will not have an adverse competitive impact on other facilities of the same or similar kind already construed or operating in the City. Pursuant to the Resolution, the Commission has approved the proposed financing and has approved in substantially final form, subject to subsequent changes by the Mayor of the City (the "Mayor") and the Clerk of the City (the "Clerk"), a Loan Agreement; a form of promissory note to be issued by the Borrower in favor of the City and assigned to the trustee under the Trust Indenture with regard to each series of Bonds issued (the "Borrower's Notes"); a Trust Indenture for the purpose of securing the Bonds (the "Trust Indenture"}; the Bond Purchase Agreement for the purpose of providing for the issuance and sale of the Bonds (the "Bond Purchase Agreement"); and the form of the City of South Bend, Indiana, Adjustable Rate Demand Economic Development Revenue Bonds (The Stanley Clark School Project) to be used for each series of Bonds issued (collectively, the "Financing Documents"). Pursuant to and in accordance with the Act, the Borrower has requested that the City procure funds to finance the Projects by issuing its economic development revenue bonds in one (1) or more series in an aggregate principal amount not to exceed Fifteen Million and 00/100 Dollars ($15,000,000.00), which shall be issued without expense to the City (the "Bonds"). No member of the Common Council has any pecuniary interest in any employment, financing agreement or other contract made under the provisions of Indiana Code § 36-7-11.9 and Indiana Code § 36-7-12 and related to the bonds authorized herein, which pecuniary interest has not been fully disclosed to the Common Council and no such member has voted on any such matter, all in accordance with the provisions of Indiana Code § 36-7-12-16. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AS FOLLOWS: SECTION I. It is hereby found that the financing of the Projects approved by the Commission and presented to this Common Council, the issuance and sale of the Bonds in one (1) or more series, and the Loan of the net proceeds of each series thereof to the Borrower for the BDDBOI 4206748v1 - 2 -