1998-10-19 Resolution 130 - Laserfiche WebLink

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1. The Issuer is duly created and validly existing as a separate body corporate and politic and as an instrumentality of the City of South Bend, Indiana, with the power to enter into the Trust Agreement and the Lease described below, perform the agreements on its part contained therein and issue the Bonds. 2. The lease between the Issuer, as lessor, and the South Bend Redevelopment Commission (the "Commission"), as lessee, dated as of July 1, 1992, and as amended by the Addendum to Lease between the Issuer and the Commission dated as of October 2, 1992, and as further amended by the Addendum to Lease between the Issuer and the Commission dated as of , 1998 (the lease as so amended shall be referred to herein as the "Lease"), has been duly entered into in accordance with the provisions of Indiana Code 36-7-14 (the "Act") and is a valid and binding lease. All taxable property in the City of South Bend Redevelopment District (the "District") is subject to ad valorem taxation without limitation as to rate or amount to pay the Lease rental. The Commission is required by the Act and the Lease annually to levy and appropriate an amount sufficient to pay the Lease rentals during the term of the Lease. 3. The Issuer has duly authorized, sold, executed and delivered the Bonds and has duly authorized and executed the Trust Agreement. The Bonds are the valid and binding obligations of the Issuer secured by the Trust Agreement. 4. T'he interest on the Bonds is excludable pursuant to Section 103 of the Internal Revenue Code of 1986, as amended (the "Code"), from gross income for federal income tax purposes, and the Bonds are not "private activity bonds" under Section 141 of the Code; . however, it should be noted that, with respect to corporations (as defined for federal income tax purposes), interest on the Bonds is taken into account in determ;n;ng adjusted current earnings for the purpose of computing the alternative rninimurn tax imposed on such corporations. The opinions set forth in this paragraph are subject to the condition that the Issuer comply with all requirements of the Code that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excludable from gross income for federal income tax purposes. The Issuer has covenanted to comply with each such requirement. Failure to comply with certain of such requirements may cause the interest on the Bonds to cease to be excludable from gross income for federal income tax purposes retroactive to the date of issuance of the Bonds. We express no opinion regarding any other federal tax consequences arising with respect to the Bonds. 5. The interest on the Bonds is exempt from taxation in the State of Indiana for all purposes except the Indiana financial institutions tax and the Indiana inheritance tax. Very truly yours, .7