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<br /> ORDINANCE NO.
<br /> 769-1
<br /> AN ORDINANCE AUTHORIZING THE ISSUANCE OF NOT TO EXCEED
<br /> $790,000 AGGREGATE PRINCIPAL AMOUNT OF ECONOMIC
<br /> DEVELOPMENT REVENUE BONDS, SERIES 1996 (CRYSTAL MOUNTAIN,
<br /> INC.PROJECT)OF THE CITY OF SOUTH BEND,INDIANA, THE PROCEEDS
<br /> OF WHICH SHALL BE LOANED TO RICK E. NEWMAN TO FINANCE THE
<br /> ACQUISITION, CONSTRUCTION,INSTALLATION AND EQUIPPING OF AN
<br /> ECONOMIC DEVELOPMENT FACILITY LOCATED AT 4044 WILLIAM
<br /> RICHARDSON COURT WITHIN THE CITY OF SOUTH BEND,INDIANA,FOR
<br /> LEASE TO CRYSTAL MOUNTAIN, INC.; PROVIDING FOR THE PLEDGE
<br /> AND ASSIGNMENT OF REVENUES FOR THE PAYMENT OF SAID BONDS;
<br /> AUTHORIZING A BOND PURCHASE AND LOAN AGREEMENT WITH
<br /> RESPECT TO THE BONDS AND LEASE AGREEMENT WITH RESPECT TO
<br /> THE PROJECT;AUTHORIZING AGREEMENTS TO SECURE FURTHER THE
<br /> PAYMENT OF SAID BONDS; AND AUTHORIZING OTHER ACTIONS IN
<br /> CONNECTION WITH THE ISSUANCE OF SUCH BONDS.
<br /> WHEREAS, the City of South Bend, Indiana(the "Issuer"), is a municipal corporation and
<br /> political subdivision of the State of Indiana, and by virtue of the constitution and laws of the State,
<br /> including Indiana Code, Title 36,Article 7, Chapters 11.9 and 12, as supplemented and amended(the
<br /> "Act"), is authorized and empowered, among other things, to(a)provide funds for the acquisition,
<br /> construction, installation and equipping of economic development facilities; (b) issue its revenue
<br /> bonds for the purpose set forth herein; (c) secure such revenue bonds by a pledge and assignment of
<br /> revenues and other documents as provided for herein; and (d) enact this Ordinance (the "Bond
<br /> Ordinance"), execute the Loan Agreement (hereinafter identified) and all other documents to be
<br /> executed by it, upon the terms and conditions provided therein; and
<br /> WHEREAS, the Common Council of the Issuer (the "Common Council") has found and
<br /> determined, and does hereby confirm,that the property to be acquired with the proceeds of the Bonds
<br /> herein authorized(the"Project")will increase business opportunities within the City of South Bend,
<br /> Indiana, and will be to the benefit of the health and general welfare of the citizens of South Bend,
<br /> Indiana, and that the Issuer, by assisting with the financing of the Project through the issuance of
<br /> revenue bonds in the aggregate principal amount not to exceed $790,000, will be acting in a manner
<br /> consistent with and in furtherance of the provisions of the Act; and
<br /> WHEREAS, pursuant to a Bond Purchase and Loan Agreement (the "Loan Agreement"),
<br /> dated the date of issuance of the Bonds, among the Issuer, Rick E. Newman(the "Borrower"), and
<br /> NBD Bank,an Indiana banking corporation(the "Original Purchaser"), the Issuer proposes to issue
<br /> an amount not to exceed $790,000 of its Economic Development Revenue Bonds, Series 1996
<br /> (Crystal Mountain, Inc. Project)to provide funds for the acquisition, construction, installation and
<br /> equipping of the Project, by lending such funds to the Borrower pursuant to the Loan Agreement
<br /> which prescribes the terms and conditions under which the Borrower shall repay such loan and
<br /> ORD\SLM\106503.1
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