10189-12 Authorizing Issuance & sale of additional revenue bonds to provide funds 2012 Sewage Works Construction Fund

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City the Deposit not later than 3:30 p.m. (local time) on the next business day following the award. In the event the successful bidder shall fail or refuse to accept delivery of the 2012 Bonds and pay for the same as soon as the 2012 Bonds are ready for delivery or at the time fixed in the notice of sale, then such Deposit and the proceeds thereof shall be the property of the City and shall be considered as its liquidated damages on account Of such default. In the event no satisfactory bids are received on the day named in the sale notice, the sale may be continued from day to day thereafter for a period of thirty (30) days without readvertisement; provided, however, that if said sale is continued, no bid shall be accepted which offers an interest cost which is equal to or higher than the best bid received at the time fixed for sale in the bond sale notice. The Controller shall have full right to reject any and all bids. The opinion of bond counsel to the City approving the legality of the 2012 Bonds will be furnished to the purchaser at the expense of the City. (c) Upon the consummation of the sale of the 2012 Bonds, the Controller is hereby authorized and directed to (i) to collect from the purchaser the purchase price for the 2012 Bonds; (ii) deliver the 2012 Bonds to the purchaser; and (iii) take the purchaser's receipt for the 2012 Bonds. The amount to be collected from the purchaser shall be the full amount which the purchaser has agreed to pay therefor, which shall be not less than 99% of the par value of the 2012 Bonds plus accrued interest to the date of delivery. (d) The 2012 Bonds, when fully paid for and delivered to the purchasers, shall be the binding special revenue obligations of the City, payable out of the Net Revenues of the City's Sewage Works to be set aside into the Sinking Fund as herein provided. SECTION 9. Use of Bond Proceeds. Any accrued interest and premium received at the time of delivery of the 2012 Bonds shall be deposited in the Debt Service Account of the Sinking Fund described below and shall be applied to the payment of interest on the 2012 Bonds on the earliest interest payment dates. The remaining proceeds received from the sale of the 2012 Bonds shall be deposited in a bank or banks which are legally qualified depositories of the funds of the City, in a special fund to be designated as the "City of South Bend, Indiana, 2012 Sewage Works Construction Fund Number 661" (the "Project Fund"). The numeric designation for the Project Fund may be changed from time to time at the discretion of the Controller. The proceeds deposited in the Project Fund shall be expended only for the purpose of paying the cost of the Project and the costs of issuance of the 2012 Bonds. Any balance remaining in the Project Fund after the completion of the Project, which is not required to meet unpaid obligations incurred in connection therewith or to pay the costs of issuance of the 2012 Bonds, may be used as provided in Indiana Code 5-1-13, as amended, or as otherwise permitted by law. SECTION 10. Official Statement and Continuing Disclosure Contract. (a) The Mayor and the Controller each are hereby authorized to deem final an official statement with respect to the 2012 Bonds, as of its date, in accordance with the provisions of Rule 15c2-12 of the U.S. Securities and Exchange Commission, as amended (the "Rule"), subject to completion as permitted by the Rule, and the City further authorizes the distribution of the deemed final official statement, and the execution, delivery and distribution of such document as further modified and amended with the approval of the Mayor or the Controller in the form of a final official statement. - 11 -