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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Sect statemen the foll Sect, account hereby do No. Ind. "Project be mainti Insuranco or accoui Repayment Project carried c and betty( moneys sl deposite4 when sucl (a) The "going Federal rate" determined pursuant to the provisions of Title I of the Housing Act of 1949, as amended, and effective on the effective date of such redetermined rate; or (b) A rate per annum equal to the average yield to maturity on all outstanding obligations of the United States having a maturity of approximately five years from the May 1 or November 1, as the case may be, next preceding the effective date of such redetermined rate, as deter- mined by the Secretary of Housing and Urban Development upon advice of the Secretary of the Treasury, such average yield to be estimated on the basis of daily closing market bid quotations or prices for the month of May or November next preceding the effective date of such redetermined rate, and adjusted to the nearest 1/8 of 1 percent. on 3. That each Project Temporary Loan Note issued, including a of the delivery thereof to the Government, shall be in substantially swing form: (a) When such Project Temporary Loan Note supports a requisition for a direct Federal loan to finance the urban renewal or redevelopment project, such Note shall be in substantially the form of "Exhibit A" attached hereto and made a part hereof; Provided that each such Project Temporary Loan Note bearing a date subsequent to the expiration of the "Initial Interest Period" shall state on its face the applicable interest rate and shall define therein the term "Initial Interest Period" by use of a date which shall be the end of the pertinent six -month period, both as authorized and as required by this Resolution; (b) When such Project Temporary Loan Note is to be held by the Government in escrow in connection with the issuance of obligations of the Local Public Agency to aid in financing the aforementioned urban renewal or redevelop- ment project, such Note shall be in substantially the form of "Exhibit B" attached hereto and made a part hereof. on 4. That there is hereby established a separate and special in the books of account of the Local Public Agency, which is �signated the "Project Temporary Loan Repayment Fund; Project R -56 ", said account being elsewhere herein referred to as the Temporary Loan Repayment Fund." The moneys of such account shall tined in a bank or banks which are members of the Federal Deposit Corporation, and may be deposited in a consolidated bank account its limited to the moneys comprising the Project Temporary Loan Fund for this Project together with the moneys comprising the emporary Loan Repayment Fund for any or all urban renewal projects gut or to be carried out under Contracts for a Loan and Grant by !en the Local Public Agency and the Government. The following gall be debited to said Project Temporary Loan Repayment Fund and I in the bank account or accounts authorized by this section as and i moneys are received by the Local Public Agency: (a) The proceeds of all sales of Project Land by the Local Public Agency, excluding such proceeds as may arise from the sale of Project Land after such Project Land has been leased; (b) All moneys constituting compensation by the Local Public Agency for Project Land which it retains instead -2-