Multifamily Housing Revenue Bonds (Raintree Point Associates LTD Project)

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Sponsor has informed the City that it intends to assign its (i) rights, duties and obligations in and to the Loan Agreement dated as of December 15, 1985 by and between the Issuer and the Sponsor (the "Loan Agreement" ) and (ii) obligations under the Regulatory Agreement dated December 15, 1985 executed by the Sponsor (the "Regulatory Agreement" ) to Can-American South Bend Limited Partnership, a Minnesota limited partnership (the "Developer" ) , which intends to assume all of the rights, duties and obligations of the Sponsor under the Loan Agreement and Regulatory Agreement in order to acquire, install and construct the Project in furtherance of the Act' s objectives. In order to facilitate the described assumption and assignment for the purpose of constructing the Project, it is necessary to supplement and amend the Indenture and Loan Agreement to provide, among other things, for the extension of the redemption date of the Bonds from March 15, 1988 for a period of not to exceed six ( 6) months and for the purchase and remarketing of the Bonds on March 15, 1988 (the "Initial Conversion Date" ) . The Sponsor and its proposed assignee have advised the City that in their estimation, the cost of the Project will be not less than $11, 000, 000. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, THAT: SECTION 1. Determination of Necessity. The amendment of the Indenture and Loan Agreement to extend the redemption date and permit the purchase and remarketing of the Bonds on the Initial Conversion Date to assist in financing of the Project complies with the purposes and provisions of the Act and will be a benefit to the health and welfare of the citizens of the City. The Project constitutes an "economic development facility" under the Act and will consist of the acquisition and construction of an approximately 204-unit multifamily residential housing complex located on 7 . 5 acres, more or less, Parcel "A" in the East Bank Development Area. The extension of the redemption date and purchase and remarketing of the Bonds on the Initial Conversion Date is necessary to provide for the construction of the Project in the City. SECTION 2 . Remarketing of Bonds . The Bonds shall be remarketed in the aggregate principal amount of Eleven Million Dollars ( $11, 000, 000) on the Initial Conversion Date (or such lesser amount) to the extent that proceeds from remarketing are available for the purchase of the Bonds on the Initial Conversion Date. The Bonds shall be in fully registered form in denomina- tions of $5, 000 and whole multiples thereof. On and after the Initial Conversion Date, the Bonds shall bear interest at a rate to be determined upon the sale thereof on the Initial Conversion Date, but in no event shall the interest rate on the Bonds after the Initial Conversion Date and prior to the Second Conversion Date (as defined in the Indenture) exceed ten percent (10%) per annum. From and after the Second Conversion Date, the Bonds - 2 -