Authorizing issuances of bonds to evidence a loan from the business development corporation - relating to Bosch

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In order to fund the rehabilitation of the Property, the City proposes to borrow the aggregate principal amount not to exceed of Five Hundred Ten Thousand Dollars ($510,000) (the "Loan")from the Business Development Corporation of South Bend, Mishawaka, St. Joseph County, Indiana, an Indiana nonprofit corporation (the "BDC")and issue revenue bonds (the "Bonds") of the Ciry to evidence the Loan. Pursuant to the terms of the agreement which shall evidence the Loan (the "Loan Agreement"), the BDC requires that the City execute and deliver a mortgage granting to the BDC a security interest in the Property (the "Mortgage") and a collateral assignment of the City's interest in the Agreement (the "Collateral Assignment"). To repay the Loan, the City will use certain sums payable by Bosch to the City pursuant to the terms of the Agreement (the "Bosch Funds"). In addition, the Redevelopment Commission (the "Commission")has adopted a resolution agreeing to consider the use of available tax increment revenues from the Airport Economic Development Area (the "TIF Revenues") to repay the Loan in the event that the Bosch Funds are insufficient for such purpose. It is intended that the City shall have no other obligation with respect to the payment of principal of or interest on the Loan other than (i) the Bosch Funds or (ii) if Bosch fails to make such payments or if such funds are insufficient to repay the Bonds, from the TIF Revenues. The Bonds which shall evidence the Loan shall constitute a limited obligation of the City payable solely from the Bosch Funds. Neither the full faith and credit nor the taxing power of the Ciry is pledged to the payment of the principal of and the interest on the Bonds. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND AS FOLLOWS: ::ODMA\MIIODMA\SBIlvfAN1;102939;3 '2'