Approving Economic Development Bonds - South Bend Forge Inc

Home Browse Search

EXHIBIT A State of Indiana City of South Bend Economic Development First Mortgage Revenue Bond, Series 1980 (South Bend Forge, Inc. Project) (ABS Industries, Inc. - Guarantor) The City of South Bend (hereinafter called the "Issuer "), a municipal corporation and political subdivision in the County of St. Joseph and the State of Indiana (hereinafter referred to as the "State "),for value received, promises to pay to American Securities Bank N.A., or registered assigns, but solely from the sources and in the manner hereinafter re- ferred to, the.principal sum of Three Million Dollars and to pay from said sources interest on the unpaid balance of the princi- pal sum hereof from and after the date of initial delivery of this Bond at the rate or rates hereinafter provided, on the first day of each August, November, February, and May, commencing August 1, 1980. Principal shall be payable in eighteen (18) consecutive installments on the first day of each August, November, February, and May, commencing November 1, 1980 until paid in full, with the final installment due and payable on May 1, 1985, subject to the conditions hereinafter set forth with respect to mandatory and optional redemption by the Issuer prior to payment in full of said principal sum. Principal of and interest on this Bond are payable in lawful money of the United States of America, without deduction for the services of the paying agent, by check or draft to the registered holders at the addresses as they appear on the registration books of the Issuer and upon presentation and surrender upon the final payment of principal and interest at the principal corporate trust office of the Trustee, presently First Bank and Trust Company of South Bend. The Series 1980 Bonds will bear interest at a rate of eighteen percent (18 %) per annum, provided that with the consent of the holder of this Bond, interest payable on the principal sum from time to time outstanding shall be adjusted from time to time so that such rate is at all times equal to sixty -eight percent (68 %) of National City Bank's Prime Rate. As used herein, National City Bank's "Prime Rate" shall mean the base rate, by whatever name then denoted, as announced and generally applied from time to time by National City Bank for 90 days commercial loans in Cleveland, Ohio, to borrowers of the highest credit standing, which base rate of interest shall be adjusted automatically as of the opening of business on the effective date of any change therein. Interest shall be calculated on the basis of a 360 day year, but computed on the actual number of days outstanding. On the tenth business day next preceding an Interest Payment Date (as that term is defined in the First Supplemental Agreement) (the "Notice Date "), the Trustee shall give the Company and all registered holders of the Series 1980 Bonds written notice of the amount of interest payable on such Interest Payment Date. Such written notice shall state the various rates of interest applied during the preceding quarter and the number of days to which each of the respective rates of interest were applied. Interest for the period commencing on any Notice Date and ending on such subsequent Interest Payment Date shall be fixed and calculated at the aforementioned tax - exempt interest rate then in effect on such Notice Date. This Bond is one of a duly authorized issue of Economic Development First Mortgage Revenue Bonds, Series 1980 (South Bend Forge, Inc. Project) (ABS Industries, Inc. - Guarantor) (hereinafter called the "Series 1980 Bonds "), issuable under the Trust Indenture described below, aggregating in