Authorizing Issurance $6,000,000 Economic Development First Mortgage Revenue Bonds - South Bend Forge Inc

Home Browse Search

the Project, including the financing thereof, will require the issuance, sale and delivery of the Project Bonds in the principal amount of $6,000,000, and hereafter may require the Issuer's best efforts to issue, sell and deliver Additional Bonds on a parity therewith, all of which Bonds shall be equally and ratably payable and secured as provided herein and in the Indenture. Section 5. Authorization and Terms of Project Bonds. It is hereby determined to be necessary to, and the Issuer shall, issue, sell and deliver, as provided and authorized herein and pursuant to the authority of the Act, $6,000,000 aggregate principal amount of Project Bonds for the purpose of making a loan to assist the Company in the financing of costs of constructing, equipping and improving the Project for the Project Purpose. The Project Bonds shall be designated "Economic Development First Mortgage Revenue Bonds (South Bend Forge, Inc. Project) (ABS Industries, Inc. - Guarantor) ". The Issuer may also issue, sell and deliver Additional Bonds on a parity with the Project Bonds for the purposes and in the manner provided in Section 10 of this Bond Legislation. The Project Bonds shall be only issued in fully registered form in the form attached hereto as Exhibit A (which form is incorporated herein by reference and made a part hereof as if set forth in full herein) and shall be dated as of July 1, 1979 with interest paid from the date of their delivery and shall be numbered as determined by the Fiscal Officer. Project Bonds in fully registered form shall be in the denomination of $20,000 or any integral multiple thereof. The Project Bonds shall mature, bear interest and be payable as to principal and interest as set forth in such form of the Project Bond attached hereto. The Project Bonds are subject to special mandatory redemption upon a final determination that interest on the Project Bonds is wholly includable for federal income tax purposes in the gross income of the holders of the Project Bonds (other than because a holder is a "substantial user" of the - 10 -