Authorizing the Insurance & Sale of $20,000,000.00 Economic Development Revenue Bonds Pertaining to Mill Race

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thereon a statement substantially as follows: The Bond is issued pursuant to and in full compliance with the Constitution and laws of the State of Indiana, particularly Indiana Code Section 36-7-11.9 and 12, as amended and pursuant to an ordinance adopted by the City which authorizes the execution and delivery of the Indenture. The Bond and the interest thereon are limited obligations of the City and are payable solely from payments and other amounts due pursuant to the Loan Agreement. The Bond is not in any respect a general obligation of the City and is not payable in any manner from revenues raised by taxation. The Bond shall never constitute an indebtedness of the City or the State of Indiana or within the meaning of any constitutional or statutory provision but shall be payable solely from the revenues pledged therefor. Neither the City Council of the City or the Commission (including the members of either or both) nor any person executing the Bond shall be liable personally on the Bond or be subject to any personal liability or accountability by reason of the issuance of the Bond. Section 4. Additional Bonds. The City may authorize the issuance of Additional Bonds upon the terms and conditions and for the purposes provided in the Indenture and in the Loan Agreement. Section 5. Sale of the Series 1985 Bond. The Mayor and City Clerk are hereby authorized and directed to sell the Series 1985 Bond to or upon the order of Midwest Commerce Banking Company of Elkhart, Indiana at a price of not to exceed $20, 000,000. 00, plus accrued interest to the date of delivery and payment, with such changes, omissions and insertions as the Mayor may approve which changes may be made without further approval of the City Council or the Commission if such changes do not affect terms set forth in I.C. 36-7-12-27 (a) (1) through (a) (11) inclusively. Section 6. Indenture. In order to secure the payment of the principal of and interest on the Series 1985 Bond and Additional Bonds, the Mayor and City Clerk shall execute, acknowledge and deliver, in the name and on behalf of the City, an Indenture of Trust in substantially the form submitted to the Elkhart City Council, which is hereby approved in all respects, pursuant to the terms of which the City assigns all of its right, title, and interest in the Loan Agreement and the Series 1985 Note to the Trustee. Section 7. Loan Agreement. In order to provide for the loan of the proceeds of the Series 1985 Bond to acquire and construct the Project and the payment by the Company of an amount sufficient to pay the principal of and premium, if any, and interest on the Series 1985 Bond, the Mayor and City Clerk shall 6 MRORD U-L_ -- - i 1