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principal amount $3,000,000 and issued for the purpose of making a loan to
<br />assist South Bend Forge, Inc. (hereinafter called the "Company ") in the
<br />financing of costs of constructing, equipping and improving real and
<br />personal property comprising a manufacturing facility within the boundaries
<br />of the Issuer to be constructed and owned by the Company to be used as a
<br />hot forging press facility and related uses (hereinafter, and in the
<br />Indenture, called the "Series 1980 Project "), pursuant to a Loan Agreement
<br />duly made and entered into between the Issuer and the Company dated-as of
<br />July 1, 1979, as amended and supplemented by the First Supplemental Loan
<br />Agreement, dated as of May 1, 1980 (hereinafter referred to as the "First
<br />Supplemental Agreement" and collectively with said Loan Agreement, as
<br />amended and supplemented, as the "Agreement "), in order to promote the
<br />health, prosperity, economic and general welfare of the Issuer. The loan
<br />made pursuant to the Agreement, as originally funded with the proceeds of
<br />an issue of Economic Development First Mortgage Revenue Bonds (South Bend
<br />Forge, Inc. Project) (ABS Industries, Inc. - Guarantor) aggregating in
<br />principal amount of $6,000,000 (hereinafter referred to as the "Project
<br />Bonds "), and additionally funded with the proceeds of the Series 1980
<br />Bonds, is hereinafter referred to as the "Loan ".
<br />Pursuant to the First Supplemental Agreement, the Company has agreed
<br />to make payments in the amounts and at the times necessary to meet the
<br />principal, premium and interest requirements on the Series 1980 Bonds.
<br />Payment of the principal of and premium, if any, and interest on the Series
<br />1980 Bonds has been unconditionally guaranteed by ABS Industries, Inc.,
<br />(hereinafter, together with its successors and assigns, referred to as the
<br />"Guarantor ") pursuant to a Guaranty Agreement dated as of July 1, 1979, as
<br />amended and supplemented by a First Supplemental Guaranty Agreement, duly
<br />made and entered into between the Guarantor and the Trustee for the benefit
<br />of the holders of the Project Bonds and the Series 1980 Bonds.
<br />The Series 1980 Bonds, together with any outstanding Project Bonds and
<br />any further additional Bonds as may be issued on a parity therewith under
<br />the Indenture (the Project Bonds, the Series 1980 and any such additional
<br />Bonds are hereinafter collectively called the "Bonds "), are issued or to be
<br />issued under and are to be equally and ratably secured and entitled to the
<br />protection given by the Trust Indenture, dated as of July 1, 1979, as
<br />amended and supplemented by the First Supplemental Trust Indenture, dated
<br />as of May 1, 1980 (hereinafter, as amended and supplemented, collectively
<br />referred to as the "Indenture ") between the Issuer and the above -named
<br />Trustee. The term "Trustee" as used herein refers to said Trustee or any
<br />successor Trustee appointed pursuant to the Indenture. The Indenture and
<br />the Mortgage hereafter described are on file in the offices of the Issuer
<br />and the Trustee, and are recorded with the Recorder of St. Joseph County,
<br />Indiana, and reference is hereby made to both for a more complete
<br />description of the provisions, among others with respect to the nature and
<br />extent of the security, the rights, duties and obligations of the Issuer,
<br />the Trustee and the holders of the Bonds and the terms and conditions upon
<br />which the Bonds are issued and secured, to all of the provisions of which
<br />Indenture and Mortgage, each holder, by the acceptance hereof, assents.
<br />The Company's obligations under the Agreement are further secured by
<br />the Mortgage and Security Agreement, dated as of July 1, 1979, as amended
<br />and supplemented by the First Supplemental Mortgage and Security Agreement,
<br />dated as of May 1, 1980 (hereinafter referred to as the "First Supplemental
<br />Mortgage" and collectively with said Mortgage and Security Agreemnet, as
<br />amended and supplemented, as the "Mortgage ") between the Company, as
<br />mortgagor, and the Issuer, as mortgagee. By the Indenture, the Issuer has
<br />assigned all of its rights, title and interest in and to the Mortgage to
<br />the Trustee as security for the payment of the principal of and premium, if
<br />any, and interest on the Bonds.
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