08-10-09 Common Council Meeting Agenda & Packet

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(ii) shall obtain a legal opinion as to the validity of the Bonds (and the BANs, if issued) from Baker & Daniels LLP, South Bend, Indiana, bond counsel for the City, with such opinion to be furnished to the purchaser of the Bonds or to the purchaser of the BANS at the expense of the City. The costs of obtaining any such insurance, other credit enhancement and/or credit ratings, together with bond counsel's fee in preparing and delivering such opinion and in the performance of related services in connection with the issuance, sale and delivery of the Bonds and BANs, shall be considered as a part of the cost of the Project and shall be paid out of the proceeds of the Bonds and BANs, respectively. Section X. Disposition of Proceeds of the Bonds and BANs City of South Bend, 2009 Sewage Works Construction Account. The proceeds from the sale of the BANS (or, if and to the extent the BANs are not issued, the Bonds) shall be deposited in a bank or banks which are legally qualified depositories for the funds of the City, in the special account to be designated as "City of South Bend 2009 Sewage Works Construction Account" (the "Construction Account"). Amounts in the Construction Account shall be expended only for the purpose of paying the costs of the Project, refunding the BANs, if issued, paying the costs of issuance of the Bonds and the BANS, if the BANs are issued,. or as otherwise permitted or required by the Act. Any balance or balances remaining unexpended in the Construction Account after completion of the Project, which are not required to meet unpaid obligations incurred in connection with the acquisition, construction, installation or equipping of the Project, shall be used solely for one or more of the purposes permitted under the provisions of Indiana Code 5-1-13, as amended, or be applied upon the terms forth in the Financial Assistance Agreement. Pursuant to the Act, the owners of the -28- BDDBOI 5738468v1