Authorizing the Issurance $7,800,000 Economic development Revenue Notes

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welfare of the City would be benefited by financing a portion of the indebtedness incurred in the acquisition and construction of the Project; (2) has approved a report estimating the public services which would be made necessary or desirable, the expense thereof, the number of jobs, the estimated payroll on account of the acquisition and construction of the Project and the cost thereof, (3) has submitted such report to the plan commission(s) and school corporation(s) having jurisdiction over such facilities, and (4) has, after giving notice in accordance with the Act, held a public hearing on the proposed financing and adopted a resolution finding the proposed financing benefits the economic welfare of the City and complies with the purposes and provisions of the Act and approving the financing and the proposed form and terms of such revenue bonds, loan agreement and indenture of trust, which resolution and other instruments and information pertaining to the proposed financing have been transmitted to the Common Council of the City by the Secretary of the Commission. Section 2. Public Benefits and Findings. The Common Council of the City hereby finds and determines that the Project as described in Exhibit A to the Loan Agreement dated as of July 15, 1983 between the City and the Company (the "Loan Agreement ") which has been acquired and constructed in part with the proceeds of Economic Development Revenue Notes, Series 1983 (Brethren Care of South Bend, Inc. - St. Paul's Retirement Village Project) (the "Series 1983 Notes ") in aggregate principal amount not to exceed $7,800,000 herein authorized is an "economic development facility" as that phrase is used in the Act; that the Project will maintain increased employment opportunities and increased diversification of business, commerce and industry in and near the City, will continue the improvement and promotion of the economic stability, development and welfare of the area in and near the City and will continue to encourage and promote the expansion of industry, trade and commerce in the area in and near the City and the location of other new commercial and business facilities in such area; and that this ordinance (the "Note Ordinance ") complies with the purposes and provisions of the Act and is of public benefit to the economic welfare of the City by tending to overcome the deficiencies previously found to exist, to wit: insufficient employment opportunities and insufficient diversification of business, commerce and industry, and that such benefit is greater than the cost of public facilities (as that phrase is defined in the Act) which will be required by the Project. Section 3. Authorization of Series 1983 Notes. In order to finance certain costs of construction of the Project which were financed with temporary loans, funding of a debt service reserve fund related to the Series 1983 Notes, payment of principal of and interest on the City of South Bend, Indiana Economic Development Revenue Bonds, Series A (Brethren Care of South Bend, Inc. Project) (the "Series A Bonds ") in connection with a partial refunding of the Series A Bonds, and certain costs of issuance of the Series 1983 Notes, the Series 1983 Notes in an aggregate principal amount not to exceed $7,800,000 are hereby authorized to be issued, sold and delivered. Section 4. Terms for the Series 1983 Notes. The Series 1983 Notes shall be dated July 15, 1983, shall be issuable as fully registered notes, shall bear interest at eleven percent (11 %) per annum, payable on the fifteenth (15th) day of each month commencing September 15, 1983 and shall mature on July 15, 1988. The Series 1983 Notes shall be payable with respect to principal, premium, if any, and interest in any coin or currency of the United States of American which at the time of payment is legal tender for the payment of public and private debts. Interest on the Series 1983 Notes shall be payable by check or draft of American National Bank and Trust Company, South Bend, Indiana, as trustee (the "Trustee ") and principal and premium, if any, shall be payable only upon presentation and surrender of each Series 1983 Note at the principal office of the Trustee. -2-