Authorizing submission of application for grant and loan assistance and repayment of industrial development fund

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submit an application to the Indiana Department of Commerce (the "Department of Commerce")and the Indiana State Board of Finance (the "Board of Finance") for assistance through the Industrial Development Fund in the form of an industrial development loan ("IDLF Loan") and an industrial development grant (the "IDGF Grant") in order to finance a portion of the Proj ect. The City intends that all or a portion of funds received from the Bosch Funds will be utilized to repay the IDLF Loan. In accordance with the requirements of the IDLF Loan, the City desires to pledge the Bosch Funds to the repayment of the principal and interest on the IDLF Loan. It is intended that the City shall have no other obligation with respect to the payment of principal of or interest on the IDLF Loan other than the Bosch Funds. NOW; THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND AS FOLLOWS: Section 1. The Common Council of the City (the "Common Council") hereby authorizes the Mayor to execute and submit the IDGF Grant Application and the IDLF Application to the Department of Commerce and the Board of Finance on behalf of the City and to take such actions as may be necessary to finalize the actions contemplated thereby, including, but not limited to, the execution of the loan agreement and the promissory note. Section 2. The Common Council hereby irrevocably pledges the Bosch Funds to the repayment of the principal of and the interest on the IDLF Loan. Such pledge shall terminate upon the final payment on the IDLF Loan and shall constitute the sole payment source for the repayment of the IDLF Loan. The IDLF Loan shall not constitute an indebtedness of the City within the provisions and limitations of the constitution of the State of Indiana. Bosch Funds received in H:\Wpdata\PLEDGERE.WPD "2"