Authorizing Submission of application for loan by the Indiana development finance authority relating to Bosch

Home Browse Search

the City achieves certain economic development goals to be set forth in the Loan, Servicing and Disbursement Agreement (the "Program Agreement") which evidences the Loan, all in accordance with the Program Act. 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 determines to cause bonds of the City (the "Bonds") to be issued in the form of the Loan pursuant to I.C. 36-4-6-19 (the "Act") for,the purpose of loaning the proceeds thereof to Bosch pursuant to the Proj ect Documents. The Council hereby approves of and ratifies the execution and filing by the Mayor of an application with the Authority for the purpose of requesting that the Authority make the Loan from the Fund in accordance with the Program and pursuant to the Program Act and the Program Agreement. The City shall, in turn, loan the proceeds of the Loan to Bosch pursuant to the terms of the Agreement for the sole use by Bosch to pay for the Program Activities as set forth in the Agreement. Section 2. The Bonds to be issued by the City and evidenced by the Loan shall be secured by the payments to be made by Bosch to the City pursuant to the Agreement. The Bonds shall be further secured by the TIF Revenues in the unlikely event that Bosch defaults on its repayment obligation set forth in the Agreement. The repayment by Bosch and the TIF Revenues shall constitute the only sources of revenues for the repayment of the Loan. Section 3. The Common Council hereby authorizes the issuance ofthe Bonds in the form of the Loan in an aggregate principal amount not to exceed the amount of the Loan, all in accordance with the Act, the Program Act and the Program Agreement. The Bonds shall be C:\WINDOWS\TEMP\#99998-2.WPD -3-