Authorizing the city Amend Documents Relating to its economic development refunding revenue bond series 1983

Home Browse Search

SENT BY: ICE MILLER ;10-26-92 ; 3:54PM ; COPY CENTER-, 2192842397412 bond counsel that it is unable to give an opinion that the interest payable on the Bond continues to be excludable for federal income tax purposes from the gross income of Holder (other than during such time as Holder was a substantial user of the Project or a related person, within the meaning of Section 147(a) of the Internal Revenue Code). 9. This Bond is issued pursuant to and in full compliance with the constitution and laws of the State of Indiana, including Indiana Code 36-7-12, and is issued by Issuer for the purpose of refunding the City of South Bend, Indiana Economic Development Refunding Revenue Bond, Series 1983 (Columbia Place Associates Project). As security for this Bond, Issuer has conveyed to Holder its rights under the Loan Agreement, and endorsed to Holder the Note of the Borrower dated of even date herewith in the principal amount of$1,577,719 and has directed that Borrower execute and deliver to Holder the Mortgage and Security Agreement, as amended by the First Amendment to Mortgage and Security Agreement, and an Assignment of Rents and Leases, each dated as of August 1, 1983 (all of which are hereinafter called the "Security Documents"). This Bond is secured by a Capital Expense Escrow of even date herewith. Holder shall have the right to apply all or a portion of the proceeds of said Capital Expense Escrow to the outstanding principal balance hereunder. 10. Notwithstanding any other agreements between Issuer, Borrower and Holder, this Bond and all payments hereunder, however designated, are limited obligations of Issuer payable solely from payments owed to Issuer pursuant to the Loan Agreement, Note, and other Security Documents, and from disposition of the security given heretofore. This Bond and all payments hereunder, however designated, do not and shall never constitute a debt of Issuer within the meaning of any constitutional or statutory limitation and do not and shall never constitute a charge against Issuer's general credit or taxing powers. The provisions of this paragraph shall, for all purposes of this Bond, be controlling and be given full force and effect, anything else to the contrary in this Bond or any other documents notwithstanding. 11. It is agreed that time is of the essence in the performance of all obligations hereunder and under the Security Documents. If Issuer shall fail to make any payment hereunder within fifteen (15) days after the same shall be due, or if the Issuer should default in the performance or observance of any of the terms, agreements, covenants or conditions contained in the Security Documents, then, or at any time thereafter, the entire principal balance of this Bond, irrespective of the maturity date specified herein, together with the then accrued interest thereon, and to the extent permitted by law the prepayment premium, shall, at the election of the Holder hereof, and without notice of such election, become immediately due and payable and the entire principal balance with accrued interest thereon shall thereafter until paid bear interest at a rate of five percent (5%) in excess of the interest rate then applicable hereunder. 12. All makers, endorsers, guarantors and sureties hereof jointly and severally waive presentment, protest and notice of dishonor; and they also jointly ad severally hereby consent to any and all renewals, extensions or modifications of the terms hereof, including the terms or times for payment; and further agree that any such renewal, extension or modification of the - 4 -