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If any of the "events of default" (as defined in Article VII, Section 7.01 of the Trust Agreement) occurs, the Trustee may, upon request of the holders of 25% of the then outstanding Bonds, by • notice in writing to the Authority, declare the outstanding principal and interest immediately due and payable, subject to the right of the holders of a majority of the outstanding Bonds, by written notice to the Authority and Trustee, to annul each declaration at any time if the defaults have been cured. In the case of an event of default, the Trustee may protect its and the bondholders' rights. by suit or by suits in equity or at law in any court of competent jurisdiction whether for specific performance of any covenant or for the enforcement of any other appropriate legal or equitable remedy. Each and every such remedy will be cumulative. The Authority covenants that whenever there are sufficient funds held by the Trustee to pay principal, redemption premiums and interest to the next interest payment date ` on .all outstanding Bonds, it will direct the Trustee to call all outstanding Bonds for redemption. A summary of the funds and accounts established in the Trust Agreement is provided in the following section of this Official Statement. Excerpts from the Trust Agreement are found in Appendix IV of this Official Statement. Persons interested in obtaining the full Trust Agreement may request a copy from Parker & Jaicomo, Attn: Richard L. Hill, Esq., First Bank Building, 205 West Jefferson, South Bend, Indiana, 46601, (219) 234-4149. Funds and Accounts Per the Trust Agreement • The Trust Agreement establishes the following funds and accounts. (This information is presented in summary form. For greater detail, please refer to Appendix IV.) South Bend Redevelopment Authority South Bend Central Development Area Nubllc Improvement Project Construction Fund. The construction fund shall consist of the following accounts: Bond Interest Account and Construction Account. Bond Interest Account. The Trustee shall deposit into this Account the accrued interest, unused discount, and an amount from the Bond proceeds which when added thereto is equal to the interest on the Bonds through August 1, 1992, plus $60,000. (The Trust Agreement currently provides for interest to be capitalized through August 1, 1991; however, the final form of the Trust Agreement, to be executed between the Authority and the Trustee after the sale of the Bonds and prior to bond closing, will provide for this larger amount of capitalized interest.) The Trustee shall pay from this Account the interest accruing on all obligations of the Authority until the filing of the Affidavit of Completion. Upon the filing of such Affidavit, the Trustee may. transfer to the Sinking Fund the amount needed to pay principal and interest on the Bonds to the extent the lease rental will be insufficient. The balance remaining in the Bond Interest Account will be transferred to the Construction Account. Construction Account. All Bond proceeds not required to be deposited in another account shall be deposited in the Construction Account to pay all direct and related costs of construction, costs of real estate acquisition and equipment acquisition, the required audit expense, and all costs relating to issuance of the Bonds. After the filing of the Affidavit of Completion, the Trustee shall hold in this Account 150% of the amount of any disputed claims of contractors and work to be repaired and transfer the remainder to the Sinking Fund. Any balance remaining after payment of all disputed claims shall be transferred to the Sinking Fund. • -7-