Authorizing the Issuance & Sale $2,400,000 Allied Products Corp

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of a letter of credit securing the Bonds, and the Trustee, as joint mortgagees, and (5) this Bond Ordinance; NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AS FOLLOWS: Section 1. Findings; Public Benefits. The Common Council of the City hereby finds and determines that the land, buildings, equipment and facilities in connection therewith (the "Project ") to be acquired, constructed, renovated and equipped with the proceeds of the Economic Development Revenue Bonds herein authorized are r economic development facilities" as that phrase is used in the Act; that acquisition, improvement and construction of the Project and the lease of the Series B Project (the second phase of the Project as described in the Amendment to the Parcel A Lease Agreement) to the Company pursuant to the Parcel B Lease Agreement and the Parcel A Lease Agreement, as amended, will increase employment opportunities and increase diversification of economic development facilities in and near the City, will improve and promote the economic stability, development and welfare of the area in and near the City and will encourage and promote the expansion of industry, trade and commerce in the area in and near the City and the location of other new industries in such area; and that the public benefits to be accomplished by this Bond Ordinance, in tending to overcome insufficient employment opportunities and insufficient diversification of industry, are greater than the cost of public services (as that phrase is used in the Act) which will be required by the Series B Project. Section 2. Authorization of Economic Development Revenue Bonds. In order to pay a portion of the costs of acquiring, constructing, renovating and equipping the Project, there are hereby authorized to be issued, sold and delivered $2,400,000 aggregate principal amount of Economic Development Revenue Bonds, Series B (Allied Products Corporation Project) of the City (the "Series B Bonds "). Initial costs of the Project (referred to in the Indenture of Trust dated as of February 1, 1984 from the City to 1st Source Bank, as Trustee and Parcel A Lease Agreement as the "Series A Project ") have already been paid out of the proceeds of Series A Bonds which were issued on March 2, 1984 pursuant to Ordinance No. 7308 -84 and the terms of the Series A Indenture and the Parcel A Lease Agreement referred to therein. The balance of the costs of the Project (referred to in the Indenture and the Parcel B Lease Agreement as the "Series B Project ") are to be paid with the proceeds of the Series B Bonds which are additional bonds authorized under the Parcel A Lease Agreement and Section 210 of the Series A Indenture. Section 3. Terms for the Series B Bonds. The total principal amount of Series B Bonds that may be issued is hereby expressly limited to $2,400,000. The Series B Bonds shall be designated "Economic Development Revenue Bonds, Series B (Allied Products Corporation Project ", shall be represented by one or more Bonds in fully registered form without coupons and shall be lettered and numbered R -1 and upward. The Series B Bonds shall be dated as of the date of issuance thereof. Principal on the Series B Bonds shall be due and payable in consecutive monthly installments in the amount of $20,000 each on the first day of each month -2-