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

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Section 1. The Common Council of the City (the "Common Council") hereby determines to issue the Bonds to evidence the Loan pursuant to I.C. 36-4-6-19 (the "Act") for the purpose of rehabilitating the Property in accordance with the Agreement. The Council hereby approves of and ratifies the execution and filing by the City of an application with the BDC for the purpose of requesting that the BDC make the Loan. The City shall use the proceeds of the Loan solely to carry out the rehabilitation activities as set forth in the Agreement. Section 2. The Common Council hereby authorizes the issuance of the Bonds in the form of the Loan in an aggregate principal amount not to exceed Five Hundred Ten Thousand Dollars ($510,000). The Bonds shall be designated as the "City of South Bend, Indiana, Revenue Bonds, Series 2001C (Robert Bosch Corporation Project)." The Bonds shall be issued in fully registered form in the denomination of $1.00 or integral multiples thereof not exceeding the aggregate principal amount of the Bonds to be issued. Principal of and interest on the Bonds shall be paid pursuant to the schedule set forth as an exhibit to the Bonds. Interest shall be calculated on the basis of a 360-day year. The Bonds shall be sold by private, negotiated sale at a price of par to the BDC pursuant to the Loan Agreement. The Bonds shall be dated and have an original issuance date as of the date of the Loan. The Bonds shall mature on a date not later than twenty (20) years from the date of original issuance thereof and shall bear interest at a rate not to exceed four percent (4.0%) per annum. The Bonds maybe redeemed by the City in whole and not in part on any date at par plus accrued interest to the redemption date. The Bonds shall be issued on parity with the City's Revenue Bonds, Series 2001 D (Robert Bosch Corporation Project) (the "Parity Bonds") and senior to the City's Revenue Bonds, Series 2001E (the "Junior Bonds") to be issued on even date ::ODMA\MI-IODMA\SBIMAN1;102939;3 -3-