No. 2390 a bond resolution authorizing the issuance of City of South Bend, Indiana, Redevelopment District Tax Increment Revenue Bonds of 2007 (Douglas Road Economic Development Area project)

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• (ii) second, to deposit into a Reserve Subaccount of the General Account, which is hereby established within the General Account, as an additional reserve for the purposes of making deposits into the Bond Principal and Interest Account in the event of any deficiency at any time in such account and to the extent that there is not sufficient funds available on deposit in the Reserve Account for such purpose which deposits into the Reserve Subaccount of the General Account shall continue until the amount on deposit therein is equal to $100,000; (iii) third, any such remaining amounts shall be deposited into the Reserve Account for the purpose of reducing the amount of the Letter of Credit which deposits into the Reserve Account shall continue until the Debt Service Reserve Requirement is satisfied with such deposit and the Letter of Credit has been terminated as a result of such deposits; (iv) fourth, to pay principal on the Major Moves Loan that is owed; (v) fifth, to reimburse the Developer for the principal amount of any payments previously paid as a result of the Letter of Credit; (vi) sixth, to reimburse the Developer for any payments made on the Major Moves Loan ;and (vii) seventh, any remaining amounts deposited into the General Account from the Tax Increment Revenue Account shall be available only to do one or more of the following: (1) pay the principal of and interest on any obligations (including the Bonds) payable solely from allocated tax proceeds which are incurred by the Redevelopment District for the purpose of financing or refinancing the redevelopment or economic development of the Allocation Area; (2) establish, augment, or restore the debt service reserve for bonds (including the Bonds) payable solely or in part from allocated tax proceeds in the Allocation Area; (3) pay the principal of and interest on bonds payable from allocated tax proceeds in the Allocation Area; (4) pay the principal of and interest on bonds issued by the City to pay for local public improvements in or serving the Allocation Area; • BDDBOI 4912282v3 - 17 -