1994-06-21 Minutes - Laserfiche WebLink

Home Browse Search

per annum), and purchase price for Bonds (other than Pledged Bonds) when due upon redemption, acceleration, purchase or otherwise. The Initial Credit Facility shall expire on , 1999 (subject to earlier termination) _ but may be extended or replaced as set forth herein. See "LETTER OF CREDIT" and "RENEWAL CREDIT FACILITIES; ALTERNATE CREDIT FACILITIES". Bonds in a Fixed Mode shall not be supported by any Credit Facility. To provide for issuance of the Initial Credit Facility, the Authority will enter into a Letter of Credit and Reimbursement Agreement with the Initial Credit Facility Issuer dated as of June. 1, 1994 (the "Reimbursement Agreement"), pursuant to which the Authority will be obligated to reimburse the Initial Credit Facility Issuer for all drawings made under the Initial Credit Facility. THE BONDS ARE SPECIAL OBLIGATIONS OF THE AUTHORITY AND ARE PAYABLE SOLELY FROM AND SECURED EXCLUSIVELY BY A LIEN ON THE PLEDGED FUNDS (AS HEREINAFTER DEFINED), INCLUDING FUNDS DRAWN UNDER THE CREDIT FACILITY THEN IN EFFECT. THE BONDS, AND INTEREST ON THE BONDS, ARE NOT A DEBT OR A GENERAL OBLIGATION OF THE AUTHORITY OR THE CTTY, NOR A CHARGE, ALIEN OR AN ENCUMBRANCE, LEGAL OR EQUTTABLE, UPON PROPERTY OF THE AUTHORITY OR THE CITY OR UPON INCOME, RECEIPTS OR REVENUES OF THE AUTHORITY OR THE CITY, OTHER THAN THOSE REVENUES THAT HAVE BEEN SPECIFICALLY PLEDGED TO THE PAYMENT OF THE BONDS AS A PART OF THE PLEDGED FUNDS. THE AUTHORTTY HAS NO TAXING POWER. See "RISK FACTORS" and "SECURITY AND SOURCES OF PAYMENT FOR THE BONDS." The Indenture establishes the "South Bend Redevelopment Authority Lease Rental Revenue Bonds of 1994 Reserve Fund" (the "Reserve Fund"). The Indenture requires that on the date of issuance of the Bonds, there will be on deposit in the Reserve Fund an amount equal to 10 g'o of the original principal amount of the Bonds (the "Reserve Amount"). The Reserve Fund may be applied solely for the purpose of paying principal of and interest • on the Bonds if any deficiencies occur in the Sinking Fund established for such purpose. At the time of issuance of the Bonds, $1,795,000 of the proceeds from the Bonds will be deposited into the Reserve Fund to provide the Reserve Amount. See "SECURTTY AND SOURCES OF PAYMENT FOR THE BONDS". The Bonds bearing interest at a Weekly Rate are subject to optional tender for purchase as described herein. The Bonds bearing interest at an Adjustable Long Rate or a Fixed Rate are not subject to optional tender. See "THE BONDS -- Purchase of Bonds on Demand of a Bondholder". The Bonds bearing interest at a Weekly Rate and an Adjustable Long Rate are subject to mandatory tender for purchase pursuant to certain mandatory tender provisions described. herein. Bonds bearing interest at a Fixed Rate are not subject to mandatory tender for purchase. See "THE BONDS -- Mandatory Purchase". The Bonds are subject to optional redemption, extraordinary optional redemption, and mandatory sinking fund redemption prior to maturity as described herein. See "THE BONDS--Redemption". The Bonds are subject to acceleration of maturity upon the occurrence of certain events, including events of default under the Reimbursement Agreement. See "SUMMARY OF CERTAIN LEGAL DOCUMENTS--Indenture--Events of Default and Remedies" in Appendix C herein. The Bonds are being issued to finance (i) the construction of a college football hall of fame in South Bend, Indiana and refunding certain bond anticipation notes issued in connection with such project, (ii) the Reserve Amount to be deposited into the Reserve Fund, (iii) capitalized interest on the Bonds in the amount of $ ,and (iv) the costs of issuance of the Bonds. See "THE PROJECT" and "SOURCES AND USES OF BOND PROCEEDS. " The information contained under the caption "INTRODUCTION" is qualified by reference to the entire ,,~„ Official Statement, including the appendices hereto. This introduction is only a brief description, and a full review should be made of the entire Official Statement, including the appendices, as well as the documents summarized or described herein. Certain information regarding the Initial Credit Facility Issuer has been provided by the Initial Credit Facility Issuer and is set forth in Appendix A herein, and the Authority makes no representations as to the -2-