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<br />7. It understands that interest on the Bonds is taxable for federal income tax purposes.
<br />Reference is made to the Indenture and to all indentures supplemental thereto and to the Loan Agreement for
<br />a description of the nature and extent of the security, the rights, duties and obligations of the Issuer and the Trustee,
<br />the rights of the holders of the Bonds, and the terms on which the Bonds are or may be issued and secured, and to all
<br />the provisions of which the holder hereof by the acceptance of this Bond assents.
<br />The Bonds are issuable in registered form without coupons in the denominations of $100,000 or integral
<br />multiples of $1.00 in excess thereof. This Bond is transferable by the registered holder hereof in person or by his
<br />attorney duly authorized in writing at the principal office of the Trustee, but only in the manner, subject to the
<br />limitations and upon payment of the charges provided in the Indenture and upon surrender and cancellation of this
<br />Bond. Upon such transfer a new registered Bond will be issued to the transferee in exchange therefor. Notwithstanding
<br />anything herein to the contrary, this Bond shall only need to be presented and surrendered for payment upon the final
<br />maturity or optional redemption.
<br />The Issuer and the Trustee may deem and treat the Registered Owner hereof as the absolute owner hereof for
<br />the purpose of receiving payment of or on account of principal hereof and interest due hereon and for all other purposes
<br />and neither the Issuer nor the Trustee shall be affected by any notice to the contrary.
<br />The Bonds maturing on and after ____________ 1, 203__ are redeemable at the option of the Issuer (at the
<br />direction of the Company) beginning on or after ____________ 1, 203__, upon thirty (30) days’ notice, in whole or
<br />in part, at face value, plus accrued interest to the date fixed for redemption.
<br />Notwithstanding anything herein to the contrary, this Bond shall only need to be presented and surrendered
<br />for payment upon the final maturity or optional redemption.
<br />If fewer than all of the Bonds at the time outstanding are to be called for redemption, the maturities of Bonds
<br />or portions thereof to be redeemed shall be selected by the Trustee at the direction of the Issuer. If fewer than all of
<br />the Bonds within a maturity are to be redeemed, the Trustee shall apply moneys available for redemption on a pro rata
<br />basis, based on the respective portion of the principal amount of Bonds held by the respective owners of the Bonds
<br />within such maturity that shall be redeemed.
<br />In the event any of the Bonds are called for optional redemption as aforesaid, notice thereof identifying the
<br />Bonds to be redeemed will be given by mailing a copy of the redemption notice by first class mail not less than thirty
<br />(30) days nor more than sixty (60) days prior to the date fixed for redemption to the Registered Owner of the Bonds
<br />to be redeemed at the address shown on the registration books; provided, however, that failure to give such notice by
<br />mailing, or any defect therein with respect to any registered Bond, shall not affect the validity of any proceedings for
<br />the redemption of other Bonds.
<br />All Bonds so called for redemption will cease to bear interest on the specified redemption date, provided
<br />funds for their redemption are on deposit at the place of payment at that time, and shall no longer be protected by the
<br />Indenture and shall not be deemed to be outstanding under the provisions of the Indenture.
<br />The Bonds, and the interest payable thereon, do not and shall not represent or constitute a debt of the
<br />Issuer, the State of Indiana, or any political subdivision or taxing authority thereof within the meaning of the
<br />provisions of the constitution or statutes of the State of Indiana or a pledge of the faith and credit of the Issuer,
<br />the State of Indiana, or any political subdivision or taxing authority thereof. The Bonds, as to both principal
<br />and interest, are not an obligation or liability of the Issuer, the State of Indiana, or of any political subdivision
<br />or taxing authority thereof, but are a special limited obligation of the Issuer and are payable solely and only
<br />from the TIF Revenues, the Taxpayer Direct Payments and the Loan Payments pledged and assigned for their
<br />payment in accordance with the Indenture. Neither the faith and credit nor the taxing power of the Issuer, the
<br />State of Indiana or any political subdivision or taxing authority thereof is pledged to the payment of the
<br />principal of or the interest on this Bond. The Bonds do not grant the owners or holders thereof any right to
<br />have the Issuer, the State of Indiana or its General Assembly, or any political subdivision or taxing authority
<br />of the State of Indiana, levy any taxes or appropriate any funds for the payment of the principal of or interest
<br />on the Bonds. The Issuer has no taxing power with respect to the Bonds. No covenant or agreement contained
<br />in the Bonds or the Indenture shall be deemed to be a covenant or agreement of any member, director, officer,
<br />agent, attorney or employee of the South Bend Economic Development Commission (the “Economic
<br />Development Commission”), the Redevelopment Commission or the Issuer in his or her individual capacity,
<br />and no member, director, officer, agent, attorney or employee of the Economic Development Commission, the
<br />Redevelopment Commission or the Issuer executing the Bonds shall be liable personally on the Bonds or be
<br />subject to any personal liability or accountability by reason of the issuance of the Bonds.
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