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1 <br /> Ordinance and the 2000 Ordinance are sometimes collectively referred to herein as the "Prior <br /> Ordinances". <br /> The Council now finds that pursuant to the 2002 Supplemental Ordinance, the City <br /> entered into an Insurance Agreement with Financial Security Assurance Inc. ("FSA"), dated <br /> June 27, 2002 (the "FSA Insurance Agreement"), and pursuant to the FSA Insurance Agreement, <br /> FSA issued its Municipal Bond Debt Service Reserve Insurance Policy No. 29146-R, effective <br /> June 27, 2002 (the "2002 Reserve Insurance Policy"). <br /> The 2002 Reserve Insurance Policy covers principal and interest payments on 2000 <br /> Bonds and 2002 Bonds, up to the policy limit stated in the 2002 Reserve Insurance Policy. The <br /> initial policy limit of the 2002 Reserve Insurance Policy was set at$2,332,703. <br /> The Council now finds that pursuant to the 2005 Ordinance, the City entered into an <br /> Insurance Agreement with MBIA Insurance Corporation ("MBIA"), dated June 6, 2006 (the <br /> "MBIA Insurance Agreement"), and pursuant to the MBIA Insurance Agreement, MBIA issued <br /> its Debt Service Reserve Surety Bond No. 48026(2), effective June 6, 2006 (the "2006 Reserve <br /> Insurance Policy"). <br /> The 2006 Reserve Insurance Policy covers principal and interest payments on the 2006 <br /> Bonds, up to the policy limit stated in the 2006 Reserve Insurance Policy. The initial policy limit <br /> of the 2006 Reserve Insurance Policy was set at$365,826. <br /> The Prior Bonds constitute a first charge upon the Net Revenues (as hereinafter defined). <br /> The Prior Ordinances provide that the City may authorize and issue additional bonds <br /> payable out of the Net Revenues ranking on parity with the Parity Bonds (as hereinafter defined) <br /> for the purpose of financing the cost of future additions, extensions and improvements to the <br /> works subject to the provisions of the Prior Ordinances. The conditions precedent to the <br /> issuance of additional parity bonds set forth in the Prior Ordinances, as described above, have <br /> been satisfied, subject to approval by the State of Indiana(the"State"). <br /> The City desires to authorize the issuance of a bond anticipation note or notes hereunder, <br /> if necessary, payable from the proceeds of the revenue bonds authorized herein (the `BANS"), <br /> and to authorize the refunding of said BANs, if issued. <br /> The Council now finds that all conditions precedent to the adoption of an ordinance <br /> authorizing the issuance of revenue bonds and BANs have been complied with in accordance <br /> with the applicable provisions of the Act. <br /> NOW THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE <br /> CITY OF SOUTH BEND, INDIANA, AS FOLLOWS: <br /> SECTION 1. Refunding the 2002 Bonds. The Council hereby determines, after being <br /> duly advised, that it is beneficial to currently refund the 2002 Bonds to enable the City to obtain <br /> a reduction in interest payments and effect a savings to the City. The City may proceed with the <br /> current refunding of the 2002 Bonds the costs of which are not expected to exceed $4,200,000, <br /> without further authorization from the Council. The terms "works" and "utility" and other like <br /> - 3 - <br />