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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(iii) The Commission shall have received a certificate prepared by an independent certified public accountant or an independent financial consultant ("Certifier") certifying that the Tax Increment estimated to be received in each succeeding year, adjusted as provided below, is estimated to be equal to at least 165% of the principal and interest requirements of all obligations of the Commission payable from Tax Increment for each respective year during the term of the bonds with respect to the Bonds and the Parity Bonds. In estimating the Tax Increment to be received in any future year, the Certifier shall base his calculation on assessed valuation actually assessed or to be assessed as of the assessment date immediately preceding the issuance of the Parity Bonds; provided, however, the Certifier shall adjust such assessed values for the current and future reductions of real property tax abatements granted to property owners in the Allocation Area. No increase in the Tax Increment to be received in any future year shall be assumed which results from projected inflation in property values. Notwithstanding the foregoing, if Parity Bonds are to be issued for the purpose of refunding Bonds, then the requirements of this subsection (iii) need not be satisfied so long as (1) the refunding bonds do not have a maturity longer than the Bonds being refunded, and (2) the debt service of the refunding bonds is less than or equal to the debt service on the Bonds being refunded in each year. The Commission shall approve and confirm the findings and estimates set forth in the above-described certificate in any supplemental resolution authorizing the issuance of the Parity Bonds. (b) Except as otherwise provided in this Section, so long as any of the Bonds are outstanding, no additional bonds or other obligations pledging any portion of the Tax Increment shall be authorized, executed or issued by the City acting for and on behalf of the Redevelopment District except such as shall be made subordinate and junior in all respects to the Bonds, unless all of the Bonds are redeemed and retired coincidentally with the delivery of such additional bonds or other obligations, or, as provided in Section 16, funds sufficient to effect such redemption are available and set aside for that purpose at the time of issuance of such additional bonds. SECTION 6. Disposition of Bond Proceeds. Proceeds received from the sale of the Bonds shall be deposited as follows: (a) All accrued interest received at the time of the delivery of the bonds plus such additional amount, if any, as the Commission shall determine with the advice of its financial advisor to be used for capitalized interest shall be placed in the Bond Principal and Interest Account; and (b) The remaining proceeds from the sale of the Bonds shall be deposited in a special fund to be designated as the "South Bend Redevelopment District Douglas Road Economic Development Allocation Area Capital Fund" (the "Capital Fund"). BDDBOI 4912282v3 - 2~ -