Authorizing the Issuance and Sale not Exceeding $4,000,000.00 Revenue Bonds - Health Quest Realty V

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WHEREAS, a public hearing was held on August 14, 1981, at which the taxpayers, residents and other interested persons of the City of South Bend, Indiana, and St. Joseph County, Indiana, were afforded an oppor- tunity to be heard relative to the proposed financing of the Project; and WHEREAS, the Project will provide additional employment opportuni- ties and diversification of economic development facilities in St. Joseph County and the City of South Bend; and will not.have an adverse competitive effect on similar facilities already constructed or operating in the City and County; and WHEREAS, the plan of financing proposed by the Developer contemplates that the City of South Bend would provide financing for the Project through the issuance of its bonds designated "City of South Bend, Indiana, Health Care Facilities Revenue Bonds, Fountainview Place of South Bend Issue (FHA Insured Project), Series A" in an aggregate principal amount not exceeding twelve percent (12 %) per annum (the "Bonds "); and WHEREAS, the Bonds are to be issued under a Trust Indenture (the "Indenture ") between the City and St. Joseph Bank & Trust Company, as Trustee (the "Trustee "); and the proceeds of the Bonds are to be loaned to the Developer for payment of costs of the Project pursuant to a Financing Agreement between the City and the Developer (the "Financing Agreement "); and WHEREAS, the Project is to be constructed by Health Quest Develop- ment Corporation, an Indiana corporation (the "Contractor ") pursuant to a Construction Contract -Cost Plus with the Developer, in accordance with the plans and specifications prepared by, and construction of the Project is to be supervised by, Korbuly -Graf, Inc. Architects, of South Bend, Indiana pursuant to an Agreement with the Developer; and WHEREAS, the loan to be made to the Developer pursuant to the Financing Agreement is to be effected by the disbursement of funds from the proceeds of the Bonds by the Trustee, and such funds are to be advanced to the Developer pursuant to a Building Loan Agreement between the Developer and the Trustee (the "Building Loan Agreement ") and a Construction Loan Disbursement Agreement (the "Disbursement Agreement ") among the Trustee, the Developer the Contractor, Blyth Eastman Paine Webber Health Care Funding, In., (the "Servicer ") and Pioneer Title Insurance Company; and WHEREAS, to provide the source of repayment of the loan to be made to it pursuant to the Financing Agreement, the Developer will deliver