No. 0069 authorizing the issuance of certain project temp. loan notes in connection with urban renewal project No. INDIANA r-7 and providing for the security for the pmt. thereof and other purposes

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Resolution #69 2. 'Section 2. That each such note shall be designated "Project Tempo ary Loan Note "; shall be payable, as to the principal there- of to ether with the interest thereon, upon demand, but solely from the Project Temporary Loan.Repayment Fund hereinafter men- tionel and not otherwise; shall be payable at the principal office of tha Local Public Agency in any coin or currency of the United State3 of America which, on the date of the payment of the prin- cipal thereof and the interest thereon, is legal tender for the payment of public and private 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 or Acting Mayor of the City of South Bend; shall have the official seal of the City impressed there :n and attested by City Clerk; and shall bear interest at the r to or rates as follows: (a) With respect to Project Temporary Loan Notes evidencing the first Two Million, Five Hundred Twenty -Seven Thousand, Five Hundred Dollars ($2,527,500) in aggregate principal amount of the loan, each such Project Temporary Loan Note delivered to and paid for by the Government during the period from August 17, 1960 to June 30, 1965 (herein called the "Initial Loan Period "), shall bear interest during the Initial Loan Period on the unrepaid prin- cipal amount thereof at the rate of Four and Five - Eighths per cent (4 -5/8/) per annum. From and after the expiration of the Initial Loan Period, Each such Project Temporary Loan Note, whether delivered to and paid for by the Government prior to or after the expiration of the Initial Loan Period shall bear interest on the unrep id principal amount thereof at the rate per annum, whichis and shall be the higher of (1) four and one -eight (4 -118/) percent per annum or (2) the rate, not to exceed, in any event, six per centum (6 %) per annum, which, subject to such limitation, shall be equal to the average yield to maturity on all outstanding marketabJ:.obliga- Lions of the United States having a maturity of approximately five years from the first day of May or November, as the case may be, next preceding the expiration of the Initial Loan Period, as deter- mined by the Housing and Home Finance: Administrator, upon the advice of the Secretary of the Treasury of the United States of America, by estimating such average yield on the basis of daily closing market bid quotations or prices during the month of May or November, as th case may be, next preceding the expiration of the Initial Loan eriod and by adjusting such estimated average yield to the neare t one - eighth of one per centum. the a Six T such Gover 1969 inter princ per a Loan the a Gover Loan ;b) With respect to Project Temporary Loan Notes evidencing lditional loan in the aggregate principal amount of Fifty - iousand, Four Hundred Fifty -Seven Dollars ($56,457), each )roject Temporary Loan delivered to and paid for by the anent during the period from September 16, 1963 to January 1, ;herein called the "Second Initial Loan Period "), shall bear ,st during the Second Initial Loan Period on the unrepaid .pal amount thereof at the rate of Four per centum (4.0%) inum. From and after the expiration of the Second Initial )eriod, each such Project Temporary Loan Note evidencing lditional loan, whether delivered to and paid for by the anent prior to or after the expiration of the Second Initial )eriod shall bear interest on the unrepaid principal amount