Bill No. 20-22 Amending Bond Ordinance_City of South Bend, Indiana Variable Rate Economic Development Revenue Bonds, Series 2007 (PEI_Genesis Project)

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27 Weekly Interest Rate, (i) the interest coverage period for the Letter of Credit shall be at least 105 days of interest at the Maximum Rate, and (ii) the interest coverage period for the Confirming Letter of Credit, if any, shall be at least 110 days of interest at the Maximum Rate. If the Project Bonds bear interest at the Fixed Interest Rate, then the interest coverage period for the Letter of Credit and the Confirming Letter of Credit, if any, shall be at least 200 days of interest. The Borrower shall be required to provide a Letter of Credit or an Alternate Letter of Credit which will provide the appropriate interest coverage. No Letter of Credit or Confirming Letter of Credit shall be required while the Project Bonds bear interest at the BSBY Rate. Notwithstanding any provision of this paragraph, no conversion shall be effective (i) if the Borrower makes an election on or prior to the day immediately succeeding any Interest Rate Determination Date not to proceed with the proposed conversion or (ii) the Trustee has not received on the effective date of such conversion an opinion of Bond Counsel to the same effect as described in clause (a) of this paragraph above. In either such event, the BSBY Rate for the Project Bonds will remain as the Interest Rate Mode then in effect for the Project Bonds without regard to any proposed conversion. The Project Bonds will continue to be subject to tender for purchase on the scheduled effective date of the propose d conversion without regard to the failure of such proposed conversion. If the Trustee shall have sent any notice to Holders regarding the proposed conversion, then, in the event of a failure of such conversion as specified above, the Trustee shall promptly notify all Holders of such failure, of the reason for such failure and of the continuation of the Interest Rate Mode then in effect. On each Interest Rate Determination Date other than an Interest Rate Determination Date while the Project Bonds bear interest at the BSBY Rate, the Remarketing Agent shall give the Trustee facsimile or telephonic notice (immediately confirmed in writing) of the interest rate or rates to be borne by the Project Bonds for the following Interest Rate Period; provided that if t he interest rate or rates is or are determined pursuant to clause (b) of the definition of the applicable Interest Rate Mode, on the Interest Rate Determination Date, the Trustee shall give notice to the Borrower, the Bank, and the Confirming Bank, if any, as above provided. If the interest rate or rates on the Project Bonds is or are converted from one Interest Rate Mode to another Interest Rate Mode, at least 30 days, but not more than 45 days, prior to the Interest Period Reset Date the Trustee shall confirm, by first-class mail to all Holders, that upon such Interest Period Reset Date the Project Bonds shall be converted from one Interest Rate Mode to another Interest Rate Mode and that all Project Bonds and Beneficial Ownership Interests shall be subject to a mandatory tender pursuant to Section 2.05 hereof, and that such mandatory tender may not be waived. Interest shall be calculated on the basis of a 360-day year of twelve 30-day months so long as interest is payable at the Fixed Interest Rate. Interest shall be calculated on the basis of a year of 365 or 366 days, as applicable, for the number of days actually elapsed so long as interest is payable at the Weekly Interest Rate. Interest shall be calculated on the basis of a 360-day year for the actual number of days elapsed while the Bonds are in the BSBY Rate Mode. Interest shall be payable on each Interest Payment Date for the period commencing on the immediately preceding Interest Payment Date and to and including the day immediately preceding such payment date. Any calculation of the interest rate or rates to be borne by the Project Bonds shall be rounded to the nearest one-hundredth of one percent (0.01%); provided, however, that while the Bonds are in the BSBY Rate Mode , interest shall be round ed upward to the fifth decimal place. The computation of the interest rate or rates on the Project Bonds by the Remarketing Agent or the