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)

Home Browse Search

SECTION 7. Capital Fund. Proceeds of the Capital Fund shall be deposited with a legally qualified depository or depositories for funds of the City as now provided by law and shall be segregated and kept separate and apart from all other funds of the City and may be invested as permitted by law. The proceeds in the Capital Fund shall be expended only for the purpose of paying the cost of redevelopment and economic development in or serving the Allocation Area, together with a sum sufficient to pay the estimated cost of all expenses reasonably incurred in connection with the redevelopment and economic development in or serving the Allocation Area, including the total cost of all reasonable and necessary architectural, engineering, legal, financing, accounting, advertising, bond discount and supervisory expenses, and expenses the Commission may be required, together with the expenses in connection with or on account of the issuance of the Bonds. Any balance or balances remaining in the Capital Fund after the completion of redevelopment and economic development in or serving the Allocation Area which are not required to meet unpaid obligations incurred in connection with the redevelopment and economic development in or serving the Allocation Area and issuance of the Bonds shall be deposited into the Bond Principal and Interest account and used solely for the purposes of that account. SECTION 8. Delivery of Resolution. As soon as can be done after the adoption of this Resolution, the President and the Secretary of the Commission are hereby directed to deliver on behalf of the Commission a certified copy of this Resolution to the Controller. SECTION 9. Sale of Bonds. The Bonds shall be sold by private negotiated sale, as provided by Section 25.1(g) of the Act, to the purchaser or underwriter selected by the Commission, at a price of not less than ninety-nine percent (99)% of par plus accrued interest, if any, to the date of delivery of the Bonds. The Controller and the President of the Commission may negotiate a purchase agreement to be entered into with respect to the purchase of the Bonds (the "Bond Purchase Agreement"), and the President of the Commission, on behalf of the City and the Commission, is hereby authorized to execute and deliver the Bond Purchase Agreement, to be attested to by the Controller. The Controller and the President of the Commission are further authorized to carry out, on behalf of the City and the Commission, the terms and conditions set forth in the Bond Purchase Agreement, consistent with the provisions of this Resolution. The purchaser of the Bonds shall be required to execute a "sophisticated investor letter" indicating it is purchasing the bonds for its own account and not to further sell the Bonds and that it is a knowledgeable investor with respect to the Bonds. SECTION 10. Bond Counsel Opinion. Prior to the delivery of the Bonds, the Controller, subject to the direction of the Commission, shall obtain a legal opinion as to the validity of the Bonds from Baker & Daniels LLP, South Bend, Indiana, bond counsel, with such opinion or opinions to be furnished to the purchaser or purchasers of the Bonds. The costs of bond counsel's fee in preparing and delivering such opinion or opinions and in the performance of related services in connection wi':h the issuance, sale and delivery of the Bonds, shall be considered as a part of the cost of the Project and shall be paid out of the proceeds of the Bonds, respectively. SECTION 11. Temporary Bonds. Any Bonds issued under this Resolution may be initially issued in temporary form exchangeable for definitive Bonds. The temporary BDDB01 4912282v3 - 21 -