1991-11-15 Resolution 46 - Laserfiche WebLink

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The lease seatal paid by tha Redevelopment Commission during the term of the Lease is requued to be in ainounta sufScYCat to pay the principal of and interest on the Bonds.. Such annual rentat is payable from ad :valorem. property taxes levied on alt taxable propertits is the District is accordance with I.C. 36-7-i427. Sea • Appcndnc B. BOND RA G Moody's Iavestoxs Service, Inc. ("Moody's") has assigntd a bond rating of "A" to the Bonds.. Such rating reflects only the view of Ivfoody's .and. any explanation of the sig~rificance of such zating may only be obtained from Moodys. The rating is not a recomnuudation to buy, sell or hold the Goads, and such rating may be subject to revision or withdrawal a1 any time by Moody's, Any downward revision or withdrawal of the rating may have an adverse effect upon the mazkct price of the Bonds. The Redevelopment Authority did not apply to any other rating service for a rating oa the Bonds. RISK FACTQRS TO 8E CONSTbE~R D_BY INVESTORS Investment in the Bonds involves certain risks, In addition to the risks described else~x+here in this OffiQal Statement, prospective investors should consider the following risks: 1. The Bonds aze limited obligations of the Redevelopment Authority, payable solely from lease rentals from the Lease and certain other funds pledged thtrefor under the Trust Agreement. The Bonds do not constitute an indebtedness, liability or loan of the credit of the City of South Bend or any political subdivision thereof, or a pledge of the faith, credit or taxing power of the City of South Bend or any political subdivision thereof. The Redevelopment Authority has no taxing power. See "SECURITY FOR THE BONDS " ,; 2. In. tha event the Leased Property should ever he totally or substantially destroyed, the lease rental wdl be abated during the period in which the Leased Property is unfit for its intended use. However, rental value insurance wdl be available to make bond payments during the time the lease rental is abated, for a period of up to two years. If either (i} the cost of reconstruction of the Leased Property would exceed the amount of insurance proceeds or (ii) such reconstruction cannot be completed within the period of time covered by rental value insurance, the insurance proceeds wiIl be applied to the redemption of all outstanding Bonds and the full discharge of all obligations pertaining thereto. 3. In the event of delayed billing, collection or distribution of property taxes by the county auditor, suff dent funds may not be available to the Redevelopment Commission in time to make lease rental payments when due, i -¢