8499-94 Authorizing Multifamily Housing Revenue Refunding Bonds

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NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, ST. JOSEPH COUNTY, INDIANA,AS FOLLOWS: Section 1. It is hereby found that the refinancing of the Project as more specifically provided in the Financing Agreements and previously approved by the South Bend Economic Development Commission and presented to this Common Council, the issuance and sale of revenue refunding bonds by the City of South Bend pursuant to the Act, the loan of the net proceeds thereof to the Partnership for the purpose of the prepayment of existing bonds of the City, and for the repayment of said loan by the Partnership to be evidenced and secured by the Loan Agreement and Note of the Partnership will be of benefit to the welfare of the City of South Bend and its citizens and complies with the purposes and provisions of the Act. Section 2. The forms of the Financing Agreements approved by the South Bend Economic Development Commission are hereby approved and all such documents are incorporated herein by reference, two copies of which shall be kept on file by the City Clerk and available for public inspection in accordance with Indiana Code Section 36-1-5-4. Section 3. The City of South Bend shall issue pursuant to the Act its Multifamily Housing Revenue Refunding Bonds (The Pointe at St. Joseph Project), Issue of 1994, Series A, B, C and D in an aggregate principal amount not exceeding $12,920,485 (the "Bonds") for the purpose of obtaining funds to loan to the Partnership in order to refinance the Project, as more particularly set out in the Loan Agreement, which Bonds will be payable as to principal, premium, if any, and interest solely from the payments made by the Partnership pursuant to the Loan Agreement and its Note in the aggregate principal amount of the Bonds which will be executed and delivered by the Partnership to evidence and secure said loan, and as otherwise provided in the above-described Indenture. The Bonds shall mature on December 15, 2018, shall be subject to such other provisions as are set forth in the Indenture as executed. $9,155,000 Series A Bonds shall bear interest at the rate of 7.50% per annum; $500,000 Series B Bonds shall bear interest at the rate of 7.75% per annum; $3,168,570 Series C Bonds shall bear interest at the rate of 3.85% per annum; and $96,915 Series D Bonds shall bear interest at the rate of 4.00% per annum. The Bonds shall never constitute a general obligation of, an indebtedness of, or charge against the general credit of the City of South Bend, Indiana. Section 4. The Mayor and Clerk are authorized and directed to sell the Bonds to the purchaser thereof pursuant to the Bond Exchange Agreement, and at a price of 100% of the principal amount thereof. Section S. The Mayor and Clerk are authorized and directed to execute the documents constituting the Financing Agreements which require their signature, and their execution is hereby confirmed on behalf of the City of South Bend and any other documents which may be necessary or desirable to consummate the transaction, including the Bonds authorized herein. The Clerk is authorized to arrange for the delivery of such Bonds to the purchasers thereof upon payment therefor which will be made to the Trustee. The Mayor and Clerk may by their execution of the Financing Agreements and the Bonds approve -2-