8447-93 Authorizing Economic Development Revenue (P.A.I. Properties $450,000)

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believe that it is in violation of any laws in any manner material to its ability to perform its obligations under this Loan Agreement and the Series 1993 Note, and has power to enter into this Loan Agreement and the Series 1993 Note. (b) The indication of interest by the Economic Development Commission of the Issuer on October 8, 1993 to issue its Series 1993 Bonds and lend the proceeds to Borrower for the purposes set forth herein has encouraged Borrower to make an addition to the Facilities in or near the City of South Bend, Indiana, and will promote diversification of economic development and create new job opportunities in the area. The Project has not been commenced by the Borrower prior to the adoption of such indication of interest with respect to the Project. (c) All of the proceeds from the Series 1993 Bonds (including any income earned on the investment of such proceeds, but after reduction for costs of issuance and interest prior to completion of the Project) will be used for the Project. No part of the proceeds are to be used by the Borrower, directly or indirectly, as working capital or to finance inventory. Costs of issuance financed by proceeds from the Series 1993 Bonds shall not exceed two percent (2%) of the face amount of the Series 1993 Bonds. (d) The Facilities constitute and will constitute either land or property of a character subject to the allowance for depreciation under Section 167 of the Code. (e) The Borrower will not use any of the funds provided by the Issuer hereunder in such manner as to, or take or omit to take any action which would, impair the exemption of interest on the Series 1993 Bonds from Federal income taxation. (f) The Borrower intends to operate or cause the Facilities to be operated as an economic development facility until the expiration or earlier termination of this Agreement as provided herein. (g) The Project is of the type authorized and permitted by the Act. (h) Neither the execution and delivery of this Loan Agreement, the consummation of the transactions contemplated hereby, including execution and delivery of the Series 1993 Note, nor the fulfillment of or compliance with the terms and conditions of this Loan Agreement, conflicts with or results in a breach of the terms, conditions or provisions of any restriction or any agreement or instrument to which Borrower is now a party or by which it is bound, or constitutes a -11-