Authorizing issuance of its "variable rate Economic Development Revenue Bonds, Series 2001 not to exceed $2,000,000

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and no such member has voted on any such matter, all in accordance with the provisions of IC 36-7- 12-16. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AS FOLLOWS: Section 1. It is hereby found that the financing of the Project referred to in the Financing Documents previously approved by the Commission and presented to the Council, the issuance and sale of the Bonds, the loan of the net proceeds thereof to the Borrower for the construction of the Project (the "Loan") and the repayment of the Loan by the Borrower will be of benefit to the health, prosperity, economic stability and general welfare of the City and its citizens and complies with the purposes and provisions of IC 36-7-11.9 and IC 36-7-12. Section 2. The proposed financing and the forms of the Financing Documents approved by the Commission are hereby approved, and all such documents are incorporated herein by reference and kept on file by the Clerk of the City. Section 3. The City shall issue the Bonds in one or more series in an aggregate principal amount not to exceed Two Million Dollars ($2,000,000) for the purpose ofprocuring funds to loan to the Borrower, in order to pay the costs of the construction of the Project, as more particularly set out in the Financing Documents incorporated herein by reference, which Bonds will be payable as to principal and interest solely from the revenues and other moneys assigned by the Trust Indenture, including loan payments received by the City under the Loan Agreement, and funds drawn by the Trustee under an irrevocable direct pay Letter of Credit (the "Letter of Credit") issued by National City Bank of Indiana. Section 4. The Mayor and the Clerk of the City are authorized and directed to sell such Bonds at a rate of interest on the Bonds, which rate shall be as set forth in the Financing Documents and incorporated herein by reference but in no event shall such rate be in excess often percent (10.0%) per annum. The Bonds shall have a maximum term of twenty (20) years and shall be sold at a price equal to not less than 97% of the par amount of the Bonds, plus accrued interest to the date of delivery of the Bonds, if any. The Bonds shall be subject to optional redemption, extraordinary optional redemption and mandatory sinking fund redemption as set forth in the Financing Documents. Section 5. Rule 15c2-12(b)(1) ofthe Securities Exchange Act of 1934, as amended (the "SEC Rule"), provides that, prior to the time a participating underwriter bids for, purchases, offers or sells municipal securities, the participating underwriter shall obtain and review an official statement that an issuer of such securities deems a "near final" official statement. The Offering Circular is hereby deemed final as of its date, except for the omission of no more than the following information: the offering price(s), interest rate(s), selling compensation, aggregate principal amount, principal amount per maturity, delivery dates, ratings and other terms of the securities depending on such matters. The Mayor is hereby authorized to execute the Offering Circular with such additions or changes thereto as shall be approved by the Mayor executing the same with such execution ::ODMA\PCDOCS\SBDOCSI\82006\1 -2-