9937-09 Concerning the Construction of Improvements to the Municipal Waterworks of the City

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STATE OF INDIANA DRINKING WATER REVOLVING LOAN PROGRAM FINANCIAL ASSISTANCE AGREEMENT made as of this day of 2009 by and between the Indiana Finance Authority (the "Finance Authority"), a body politic and corporate, not a state agency but an independent instrumentality ofthe State of Indiana (the "State") and the City of South Bend, Indiana (the "Participant"),apolitical subdivision as defined in I.C. 13-11-2-164, operating its water utility under I.C. 8-1.5, witnesseth: WHEREAS, the State's Drinking Water Revolving Loan Program (the "Drinking Water SRF Progam") has been established in accordance with the federal Safe Drinking Water Act and any regulations promulgated thereunder, and pursuant to I.C. 13-18-21 (the "Drinking Water SRF Act"), which Drinking Water SRF Act also establishes the drinking water revolving loan fund (the "Drinking Water SRF Fund"); and WHEREAS, pursuant to the Drinking Water SRF Act, the State was authorized to fund the Drinking Water SRF Program with federal capitalization grants, together with required state matching funds therefor, and to operate the Drinking Water SRF Program, and prior to May 15, 2005 so funded and operated the Drinking Water SRF Program; and WHEREAS, the Indiana Bond Bank (the "Bond Bank") has had a longstanding commitment to finance water quality and drinking water projects for qualified entities by issuing its bonds, pursuant to I.C. 5-1.5, for the purpose of buying securities of such qualified entities and financed by the Drinking Water SRF Program, including the required state matching funds, and prior to May 15, 2005 so financed the Drinking Water SRF Program; and WHEREAS, pursuant to Public Law 235-2005, by operation of law and effective May 15, 2005, the Finance Authority has become the successor to the State in all matters related to the Drinking Water SRF Program (including use and acceptance of federal capitalization grants and required state matching funds and operation of the Drinking Water SRF Program) and to the Bond Bank in all matters related to the financing of the Drinking Water SRF Program (including the Bond Bank's outstanding State Revolving Fund Program Bonds and securities of all qualified entities purchased with the proceeds of such bonds); and WHEREAS, the Participant is a duly existing political subdivision of the State, lawfully empowered to undertake all transactions and execute all documents mentioned or contemplated herein; and WHEREAS, the Participant has previously entered into two Financial Assistance Agreements with the State in its capacity as predecessor to the Finance Authority in matters related to the Drinking Water and Wastewater SRF Programs, dated as of June 12, 2000 and December 30, 1998 (the "Prior Agreements"), to borrow money from the Drinking Water and Wastewater SRF Programs, respectively, to construct and acquire a separate project (as described and defined in the Prior Agreements); and