Authorizing the Issuance of $1,550.000 Economic Development Revenue Bonds - Columbia Place Associates Project

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It is now necessary to adopt an ordinance to provide for the issu- ance of the Series 1981 Bonds; to authorize the sale thereof; to author- ize the execution of the Indenture, the Loan Agreement, and the Bond Purchase Agreement; and to authorize the loan of the proceeds of the Series 1981 Bonds to the Partnership. NOW, THEREFORE, Be It Ordained by the Common Council of the City of South Bend, Indiana as follows: Section 1 - Public Purpose. The acquisition and improvement of the Project, the payment of necessary expenses incidental thereto, and the issuance of the Series 1981 Bonds, are hereby determined to be in the public interest and, in furtherance of the public purposes contem- plated by the Act, comply with the purposes and provisions of the Act, and will be of benefit to the health and welfare of the City. Section 2 - Authority. The Series 1981 Bonds herein authorized shall be issued pursuant to the Act and other applicable provisions of law. Section 3 - Authorization and Terms of Bonds. The Series 1981 Bonds shall be issued for the purpose of providing the funds needed to loan sufficient money to the Partnership to acquire and construct the Project, and to pay the expenses of issuing the Series 1981 Bonds. The Series 1981 Bonds shall.be designated "Economic Development Revenue Bonds (Columbia Place Associates Project), Series 1981 "; shall be dated as of May 1, 1981; shall bear interest at 9.25 percent per annum, sub - iect to increase as provided in the Indenture; shall mature on May 1, 1985; and shall be of such denominations and numbers as is provided in the Indenture. The Series 1981 Bonds shall be subject to redemption prior to maturity, shall be payable at the office of the Trustee, shall be exe- cuted and authenticated in such manner, shall be in such form, shall be of such tenor and effect, and shall be payable from such sources, all as provided in the Indenture. The Mayor and the City Clerk are hereby authorized, empowered, and directed to cause the Series 1981 Bonds to be prepared in the form and having such terms and provisions as may be provided in the Inden- ture; and the Series 1981 Bonds shall be executed in the name of the City in the manner specified in the Indenture; and the Mayor or other officer of the City shall cause the Series 1981 Bonds to be delivered to the Trustee for identification and delivery to the Underwriter against payment therefor in the manner provided in the Bond Purchase Agreement. Section 4 - Execution of Related Instruments. The Mayor and the City Clerk are hereby authorized and directed to execute the Loan Agree- ment, the Indenture, the Bond Purchase Agreement, and the Official State- ment, substantially in the forms presented to and approved by this Common Council, with such changes therein as shall be approved by the officers of the City executing said instruments, their execution thereof to con- stitute conclusive evidence of their approval of any such changes. The use of the Official Statement by the Underwriter to offer and sell the Series 1981 Bonds is hereby approved. Section 5 - Sale of Bonds. The sale of the Series 1981 Bonds to the Underwriter at a price of $1,488,000 and accrued interest is hereby ratified and confirmed, and the Bond Purchase Agreement is hereby approved. Section 6 - Loan to- Partnership. The City shall loan to the Partnership the proceeds of the Series 1981 Bonds in the amount and manner and under the conditions provided in the Loan Agreement. Section 7 - Further Action. The officers of the City are hereby authorized and directed to take all further action, and to execute all such further instruments and documents, in the name and on behalf of the City, and under the corporate seal of the City or otherwise, as in their judgment shall be necessary to carry out the intent and to accom- plish the purposes of this ordinance, and to make effective the Inden- ture, the Loan Agreement, and the Bond Purchase Agreement, and to carry out the transaction contemplated by said instruments, and to perform all of the obliqations required to be performed by the City under the said instruments. -2-