6. H (2) Res 2555 - Laserfiche WebLink

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Revenues will be available to the Commission to pay the principal of, plus interest on, both the Mishawaka Loan and the Major Moves Money over the duration of twenty (20) years; and WHEREAS, neither the City nor the Commission shall have any obligation with respect to the payment of principal of or interest on the Mishawaka Loan or reimbursement of principal of or interest on the Major Moves Money other than the use of the Project Tax Increment Revenues toward the payment or reimbursement thereof, NOW THEREFORE, BE IT RESOLVED, by the City of South Bend, Indiana, Redevelopment Commission as follows: 1. The Commission hereby pledges the Project Tax Increment Revenues, projected in EXHIBIT A, to the payment of the principal of and interest on the Mishawaka Loan and reimbursement of the principal of, plus interest on, the Major Moves Money (collectively, the "Pledge Payments "). Such pledge shall remain in effect for a period of up to, but not exceeding twenty (20) years from the date of receipt of proceeds of the Mishawaka Loan. Such Pledge shall terminate at the earliest of the final Pledge Payment or the conclusion of said twenty (20) year period. 2. There is hereby created and established a Douglas Road Widening Project Principal and Interest Account of the Allocation Fund (the "Principal and Interest Account "). 3. Project Tax Increment Revenues, received by the Commission, shall be deposited into the Principal and Interest Account and shall be appropriated for the Pledge Payments. Project Tax Increment Revenues received in excess of the amount necessary (i) to pay the Pledge Payments currently due and (ii) to pay any amount of Pledge Payments not previously paid when due or interest accruing thereon as a result of an insufficiency in Project Tax Increment Revenues in a prior year or years, do not remain pledged and may be used by the Commission for any purpose set forth in Section 39 of the Act (IC 36- 7- 14 -39); provided however, that the Commission may only use such excess Project Tax Increment Revenues to the extent that the balance of the Principal and Interest Account exceeds the amount necessary to satisfy all principal and interest payments on the Mishawaka Loan and on the Major Moves Money that are currently due or past due. 4. This Resolution shall be in full force and effect after its adoption by the Commission, shall be subject to completion of all actions necessary to create the obligations referred to herein and shall not be repealed or amended in any manner which would serve to adversely affect the pledge of the Project Tax Increment Revenues contained herein. (Signature page follows) 2