Authorizing Issuance and sale of aggregate principal amount not to exceed $1,495,000, adjustable rate Econ Dev Rev Bonds

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The City, as requested by the Borrower, has determined to issue, sell and deliver City of South Bend, Indiana, Adjustable Rate Economic Development Revenue Bonds, Series 1999 (Dynamic R.E.H.C., Inc. Proj ect) in an aggregate principal amount not to exceed $1,495,000 to make funds available for the Project (the "Bonds"). There have been submitted to this Common Council (the "Council") proposed forms of: (I) the Trust Indenture (the "Indenture") between the City and Firstar Bank, National Association, as trustee (the "Trustee"), pursuant to which the Bonds will be issued; and (ii) the Loan Agreement (the "Loan Agreement") between the City and the Borrower. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA AS FOLLOWS: SECTION 1. Incorporation of Recitals. The recitals contained in this Ordinance are true and correct and are incorporated in this Ordinance by this reference. SECTION 2. Findings; Public Benefits. This Council finds that the facilities to be financed as described in said Loan Agreement are "economic development facilities" within the meaning of the Act and that such facilities will not have an adverse competitive effect on any similar facilities already constructed or operating in or about the City. This Council further finds that the proposed financing of such facilities will be of benefit to the health and general welfare of the City and its citizens. This Council further finds that the proposed financing of such facilities complies with the purposes and provisions of the Act. SECTION 3. Issuance of the Bonds. The Council hereby authorizes the issuance of an aggregate principal amount not to exceed $1,495,000 of the Bonds by the City, for the purpose of procuring funds to loan to the Borrower in order to finance the Project, costs of issuance of the Bonds, and expenses related thereto. The Bonds shall be dated the date of issuance, and shall be fully registered without coupons. The Bonds shall be payable in the medium and at the place or places, shall bear interest, shall have maturities not exceeding twenty-two (22) years from the date of issuance and shall have redemption terms as set forth in the Indenture approved by the Mayor (the "Executive") and the City Clerk (the "Clerk"). The Bonds shall be executed on behalf of the City by, and bear the manual or facsimile signature of, the Executive and Clerk, and the seal of the City shall be thereunto affixed (or imprinted or engraved if in facsimile). The Bonds shall be in the form set forth in the final form of the Indenture. The City hereby elects to apply the provisions of Section 144(a)(4) of the Internal Revenue Code of 1986, as amended, to the Bonds. -2-