1988-06-14 Minutes - Laserfiche WebLink

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r -.- 1988 As to questions of fact material to our opinion, we have relied, without undertaking to verify the same by independent investigation, upon representations of the Issuer and public officials contained in the Trust Agreement and in the certified transcript of proceedings and other certificates furnished to us, including the Issuer's .tax. covenants and representations. We have not been engaged or undertaken to review the accuracy, completeness or .sufficiency of any offering materials relating to the Bonds, and we express no opinion relating thereto. Based on the foregoing, we are of the opinion, under existing law, as follows: 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, perform the agreements on its part contained therein and issue the Bonds. 2. 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 District is required by the Act and the Lease annually to levy and appropriate an amount sufficient to pay the lease rentals commencing with the completion of the building to be erected by the Issuer or December 28, 1989, whichever is later. 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 and payable solely from the Pledged Funds, as such term is defined in the Trust Agreement, subject to the qualification that .the enforcement of certain rights and remedies provided in the Trust Agreement may be limited by the laws of the State of Indiana, but such laws of the State of Indiana do not prevent the practical realization of the benefits or the security provided by the Trust Agreement. 4. The Bonds and the interest thereon are exempt from all present Indiana taxes, except the Indiana inheritance tax. The interest on the Bonds is excluded from gross income for federal income tax purposes and the Bonds are not "private activity bonds" under Section 141 of the Internal Revenue Code of 1986 (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 determining adjusted net book income (adjusted current earnings for taxable years beginning after December 31, 1989) for the purpose of computing the alternative minimum tax imposed on such corporations. The opinion set forth in this Paragraph 4 is