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• Pledged Funds SECURITY AND SOURCES OF PAYMENT FOR THE BONDS The Bonds are special obligations of the Authority and are payable solely from and secured exclusively by alien upon the Pledged Funds, and the Authority is not under any obligation to pay the Bonds except from the Pledged Funds. The Bonds, and interest on the Bonds, are not a debt or a general obligation of the Authority or the City, nor a charge, a lien or an encumbrance, legal or equitable, upon property of the Authority or the City or upon income, receipts or revenue of the Authority or the City, other than those revenues that have been specifically pledged to the payment of the Bonds. The Authority has no taxing power. The Pledged Funds consist of (i) the proceeds from the sale of the Bonds, (ii) funds drawn with respect to Bonds in the Weekly Mode or an Adjustable Long Mode under the Credit Facility then in effect, (iii) the "Hall of Fame Portion" of the lease rentals to be received by the Authority from the Commission pursuant to a Lease, dated November 1, 1993 (the "Lease"), between the Authority, as lessor, and the Commission, as lessee, and (iv) all money and securities from time to time held by the Trustee under the terms of the Indenture (except money or securities held in accounts to pay for Bonds called for redemption or with respect to which irrevocable instructions to redeem have been given to the Trustee, and except for money held in trust for the purpose of paying arbitrage rebate to the federal government, if any), including, without limitation, the money held in .the Reserve Fund and other trust funds established pursuant to .the Indenture. The "Hall of Fame Portion" of the total .rentals payable under the Lease means the specified and limited rentals payable for the Project, including the real estate upon which the Project is located. See "LETTER OF CREDIT", "RENEWAL CREDIT FACILITIES; ALTERNATE CREDIT FACILITIES" and APPENDIX C--SUMMARY OF CERTAIN LEGAL DOCUMENTS--LEASE. Reserve Fund A "South Bend Redevelopment Authority Lease Rental Revenue Bonds of 1994 Reserve Fund" (the • "Reserve Fund") is established under the Indenture in an amount at least equal to the Reserve Amount (as hereinafter defined). The Reserve Fund may be applied solely for the purpose of paying the principal of and interest on the Bonds if any deficiencies occur in the Sinking Fund established for such purpose. See "SUMMARY OF CERTAIN LEGAL DOCUMENTS--Indenture--Operation of Funds and Accounts" in Appendix C herein. The Reserve Amount means 109b of the original principal amount of the Bonds. The Authority will provide the Reserve Amount by depositing in $1,795,000 of the proceeds from the sale of the Bonds into the Reserve Fund. There is no requirement to replenish the Reserve Fund if the amount therein is less than the Reserve Amount. THE PROJECT A portion of the proceeds of the Bonds will be used by the Authority to construct a college football hall of fame in South Bend, Indiana, as described more fully below (the "Project"), including the refunding of certain bond anticipation notes issued in connection with the Project. The Project consists of construction of a 58,000 square foot facility, on two levels plus a mezzanine, for use as a college football hall of fame. The Project is located in downtown South Bend, Indiana at the corner of St. Joseph and Washington Streets, directly across St. Joseph Street from Century Center. Century Center is a civic, exhibition and convention center, owned by the Authority, with nearly 300,000 annual visitors. The Project will be connected to Century Center by an underground concourse, thereby facilitating onsite large group programming. The Project will reflect the look of a traditional football stadium with a facade to match Century Center. Construction of the Project began on 1994, and completion is scheduled for August, • 1995. -17-