No. 0228 authorizing issuance of certain project temp. loan notes in connection with UrBan Renewal Project No. IND R-56, providing security for the payment thereof and for other purposes

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RESO' LOAN AND I OTHE' WHER called t and carr authoriz sometime under Ti which ma to the P between RESOLUTION NO. 228 .UTION AUTHORIZING THE ISSUANCE OF CERTAIN PROJECT TEMPORARY NOTES IN CONNECTION WITH URBAN RENEWAL PROJECT NO. IND. R -56 'ROVIDING FOR THE SECURITY FOR THE PAYMENT THEREOF, AND FOR t PURPOSES AS the City of South Bend, Department of Redevelopment (herein sometimes e "Local Public Agency ") is duly authorized and proposes to undertake out a certain urban renewal or redevelopment project of the character d by law with financial aid by the United States of America (herein called the "Government ") in the form of a Project Temporary Loan le I of the Housing Act of 1949, as amended (42 U.S.C. 1450 et seq.), be made by the Government to the Local Public Agency with respect oject in accordance with a Contract for a loan and grant by and he Local Public Agency and the Government; and WHEREAS, in order to enable the Local Public Agency to obtain such financial aid, it is necessary for the Local Public Agency to authorize and, from time to time, issue certain obligations as hereinafter provided: NOW, THEREFORE, BE IT RESOLVED by the South Bend Redevelopment Commission, Governin Body of the City of South Bend, Department of Redevelopment, as follows: Sect on 1. That in order to provide funds to enable the Local Public Agency to defray expenses and costs in connection with the undertaking and carrying out of the Project, and to refund, renew, extend, or substitute for any Project Temporary Loan Notes by this Resolution authorized to be issued, there are hereby authorized to be issued, from time to time, Project Temporary Loan Notes of the Local Public Agency in an aggregate principal amount out- standing at any one time (whether authorized by this Resolution or any other resolution authorizing the issuance of Project Temporary Loan Notes in connection with the Project) of not to exceed Five Hundred Eight Thousand, Eight Hundred Eighty Dollars ($508,880.00). Sect on 2. That each such note shall be designated "Project Temporary Loan Not!"; shall be payable, as to the principal thereof together with the inte est thereon, upon demand, but solely from the Project Temporary Loan Repaymen Fund hereinafter mentioned and not otherwise; shall be payable at the prin ipal office of the Local Public Agency in any coin or currency of the United S ates of America, which, on the date of the payment of the principal thereof nd the interest thereon, is legal tender for the payment of public and priv to debts; shall be payable to the United States of America or order; shall be signed in the name of the Local Public Agency by the Mayor of the City of outh Bend; shall have the official seal of the Local Public Agency impresse thereon and attested by the City Clerk of the City of South Bend; and shat bear interest at the rate or rates as follows: Duri and the on t From unre note whic i mne shal Janu shal i me, acco excei ig the period from the date of the acceptance of delivery of payment for each such note through December 31, 1968, (herein called Initial Interest Period "), said principal sum shall bear interest e unrepaid amount thereof at the rate of six per centum (6%) per annum. and after said date each such Note shall bear interest on the paid principal amount thereof at a redetermined rate (to be duly I on behalf of the United States of America on the reverse thereof), shall be initially determined and become effective on the date liately following the expiration of the Initial Interest Period and be successively redetermined at 6 -month intervals thereafter on ry 1 and July 1 of each year; and each such redetermined rate become effective,; with respect to payments unrepaid on the date liately preceding the effective date of such redetermined rate, in dance with the following formula: The redetermined rate shall not !d six per centum (6 %) per annum, but otherwise shall be the higher of: -1-