Authorizing issuance of revenue bonds to evidence a loan from the industrial revolving fund relating to Bosch

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In order to reimburse itself for a portion of the purchase price paid for the Property, the City proposes to borrow the aggregate principal amount not to exceed Five Hundred Ten Thousand Dollars ($510,000) (the "Loan") from the Industrial Revolving Fund of South Bend, Indiana, 15` Source Bank, South Bend, Indiana, trustee, (the "IRF") and issue revenue bonds (the "Bonds") of the City to evidence the Loan. Pursuant to the terms of the agreement which shall evidence the Loan (the "Loan Agreement"), the IRF requires that the City execute and deliver a mortgage granting to the IRF a security interest in the Property (the "Mortgage") and a collateral assignment of the City's interest in the Agreement and the Lease (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 City 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~MI-IODMA~SBIMAN1;103388;3 '2'