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

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1. That the Commission does hereby find that the proposed financing of the Project through- the issuance of the Bonds will be of benefit to the welfare of the City of South Bend and St. Joseph County, and will not have an adverse competitive effect on similar facilities already constructed or operating in the City and County, and that it complies with the purposes and provision of I.C. 16- 6 -4.5 -1 et seq. 2. The Commission approves the proposed financing and the proposed form and terms of: (a) The Bonds, proposed to be issued by the City in an aggregate principal amount not exceeding Four Million Dollars ($4,000,000.00) at an interest rate not exceeding twelve percent (12 %) per annum for the purpose of paying a portion of the costs of the Project, and the Indenture securing the Bonds, and (b) The Financing Agreement whereby the City will lend the proceeds of the Bonds to the Developer for payment of the costs of acquiring and constructing the Project, and providing for the repayment of such loan through the delivery to the Trustee of the Note, and the Building Loan Agreement, and Disbursement Agreement pursuant to which disbursements of such loan will be made by the Trustee to the Developer; and (c) The Note given by the Developer as the source of repayment of the loan made by the City pursuant to the Financing Agreement, and the Mortgage, Assignment of Lease, and Security Agreement given to secure the Note; and the Lease Agreement pursuant to which the Developer will lease the project to Fountainview Place Corporation of South Bend; and (d) The Regulatory Agreement with FHA which is required in connection with FHA's insurance of the Note and Mortgage, and the Servicing Agreement, pursuant to which the Service will collect payments required by the Developer under the Note, Mortgage and Regulatory Agreement; and (e) The Bond Ordinance to be adopted by the Common Council of the City of South Bend, Indiana, and the approval and consent to the same by the St. Joseph County Council, St. Jospeh County, Indiana, authorizing the issuance of the Bonds and approving the documents referred to above. 3. That it is hereby recognized that the issuance and sale of the Bonds by the City of South Bend, Indiana, under the statutes for the purposes set forth herein, shall be subject to the Developer and the City of South Bend, Indiana, obtaining any and all approvals as may be required Under the statues. 4-