11134-24 Economic Development Loan- Southeast Neighborhood Project ‎(Substitute)‎

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ARTICLE II. REPRESENTATIONS; LOAN TO BORROWER Section 2.1. Representations by City. The City represents and warrants that: (a) The City is a municipal corporation organized and existing under the laws of the State of Indiana. Under the provisions of the Act, the City is authorized to enter into the transactions contemplated by this Agreement and to carry out its obligations hereunder. City has been duly authorized to execute and deliver this Agreement. City agrees that it will do or cause to be done all things within its control and necessary to preserve and keep in full force and effect its existence. (b) Concurrently with the execution and delivery of the Loan Agreement and this Agreement, the City agrees to make the Loan to the Borrower on a draw basis (upon the District making funds available to simultaneously reimburse the City for such purpose in accordance with the terms of this Agreement) for the purpose of financing a portion of the Costs of Construction for the Project, in order to create additional employment opportunities in the City and to benefit the health, safety, morals and general welfare of the citizens of the City and the State. Section 2.2. Representations by Redevelopment District. The Redevelopment Commission, governing body for the District, represents and warrants that: (a) The Redevelopment Commission is the governing body of the District, which is a special taxing district organized and existing under the laws of the State of Indiana. Under the provisions of the Act, the Redevelopment Commission is authorized to enter into the transactions contemplated by this Agreement and to carry out its obligations hereunder. The Redevelopment Commission has been duly authorized to execute and deliver this Agreement. The Redevelopment Commission agrees that it will do or cause to be done all things within its control and necessary to preserve and keep in full force and effect its existence. (b) In order to simultaneously reimburse the City for its costs incurred, or to be incurred, in providing draws on the Loan pursuant to Section 2.3 of the Loan Agreement to finance a portion of the Costs of Construction for the Project, the Redevelopment Commission agrees that it will consider annual appropriations of not more than the sum of $116,000 multiplied by the number of homes to be constructed by the Borrower as part of the Project each year over a term of three (3) years from the Tax Increment Revenues then currently on deposit in the Allocation Fund for the purpose of paying to, or upon the order of, the City for depositing into the Project Fund, with such annual appropriations not to exceed an aggregate principal amount of not to exceed Three Million Five Hundred Thousand Dollars ($3,500,000). (c) The Redevelopment Commission acknowledges and agrees that the Loan being made by the City to the Borrower is subject to forgiveness upon the Borrower's satisfaction of certain conditions set forth in Section 4.3 of the Loan Agreement. (End of Article II) 5