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

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Section 7. Sale of Project Bonds. The Project Bonds are hereby sold and awarded to the Original Purchasers, in accordance with their written offers therefor. The Executive and the Fiscal Officer are authorized and directed to make the necessary arrangements with the Original Purchasers to establish the date, location, procedure and conditions for the delivery of the Project Bonds to the Original Purchasers and to take all steps necessary to effect due execution, authentication and delivery to the Original Purchasers of the Project Bonds under the terms of this Bond Legislation and the Indenture to the extent not provided for in said written offer. It is hereby determined that the price for and the terms of the Project Bonds, and sale thereof, all as provided in this Bond Legislation, are in the best interest of the Issuer and in compliance with all legal requirements. Section 8. Allocation of Proceeds of Project Bonds - Construction Fund. All of the proceeds from the sale of the Project Bonds shall be allocated, deposited and credited to the Construction Fund. There is hereby created by the Issuer and ordered maintained as a separate deposit account (except when invested as hereinafter provided) in the custody of the Trustee a trust fund in the name of the Issuer to be designated "City of South Bend - South Bend Forge, Inc. Construction Fund" (the "Construction Fund "). Moneys in the Construction Fund may be invested as provided in Section 12 hereof and shall be disbursed in accordance with the provisions of the Agreement. The Trustee is authorized and directed to make any such disbursement from the Construction Fund in accordance with the provisions of the Agreement. The moneys to the credit of the Construction Fund shall, pending disbursement as above set forth, be subject to a lien and charge in favor of the holders of the Project Bonds. Section 9. Source of Payment - Bond Fund. As provided in the Agreement, Loan Payments, sufficient in time and amount to pay the Bond - 14 -