HomeMy WebLinkAboutRDA Reso No 1986RESOLUTION N0. CRA 86-1
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF
LAKE ELSINORE ACKNOWLEDGING THE RECEIPT AND FILING OF THE
ANNUAL STATEMENT OF INVESTMENT POLICY FOR THE YEAR 1986.
WHEREAS, the California State Legislature passed legislation during the
1984 Session requiring the filing of an annual Statement of Investment Policy by
i local agencies; and
WHEREAS, the Governor of the State of California signed such legislation
into law effective January l, 1985 (Chapter 1226); and
WHEREAS, the RDA Treasurer of the City of Lake Elsinore declares the
annual Statement of Investment Policy to be as follows:
PURPOSE: This statement is intended to provide guidelines for the prudent
investment of temporary idle cash and trust funds and to outline a policy for
effecting efficiency in the cash management system. Ultimate investment goals
include the protection of pooled cash investments along with the enhancement
of economic status of the RDA of the City of Lake Elsinore.
OBJECTI~E: The RDA's cash management policy is designed to accurately moni-
tor and forecast expenditures and revenues, thus insuring the investment of
, moneys to the fullest extent. Attempts to obtain the highest interest yields
i possible are a statement of fact as long as investments meet the criteria
required for safety and liguidity.
POLICY: The Redevelopment Agency of the City of Lake Elsinore operates its
pooled idle cash investments under the Prudent Man Rule (Civil Code Section
2261, et seq.), which states, in essence, that "in investing ... property
for the benefit of another, a trustee shall exercise the judgment and care,
under the circumstances then prevailing, which men of prudence, discretion,
and intelligence exercise in the management of their own affairs ..." (copy
attached). This affords a broad spectrum of investment opportunities so long
as the investment is deemed prudent and is permissible under the currently
effective legislation of the State of California and other imposed legal
restrictions. The RDA strives to maintain the level of investment of idle
li ,
, funds as near to 100% as possible. Consistent with this factor, investments
are made under the terms and conditions of Sections 53600 - 53683 of the
Government Code of California. Criteria for selecting investments and the
absolute order of priority are:
1. SAFETY
2. LIQUIDITY
3. YIELD.
MOST INVESTMENTS WILL BE MADE IN THE FOLLOWING MEDIA:
1. Government securities and debt obligations by Governmental agencies
whose obligations carry the full faith and credit of the Federal Government
and repurchase agreements of the same stature are the hi9hest quality invest-
ments available in terms of safety and liquidity.
' 2. Certificates of deposit, savin9s accounts and interest bearing active
I , deposits are insured or collateralized to the degree consistent with or
', exceeding existing law or regulation. As certificate maturities are selected
to anticipate cash needs and cash flow, additional purchases of collateral-
' ized or insured term certificates of deposit will be limited, unless negotia-
ble, to those with maturities not exceeding two years and for the most part
, will be kept within one year.
I 3. All deposits in the State Local Agency Investment Fund are in accordance
' with Section 16429.1 of the Government Code. These investments, highly
liquid, will not exceed the insured or collateralized limit. The RDA of
', the City of Lake Elsinore operates its investment pro9ram with many Federal,
' State, and self-imposed constraints. It does not buy stocks; it does not
j speculate; it does not deal in financial futures, commodity options, market
' indicies, or reverse repurchase agreements.
To maximize investment income, the RDA of the City of Lake Elsinore
uses available, economically feasible investment aids. Economic conditions
and the various money markets are constantly monitored to assess financial
trends and the probable course of interest rates.
' The final basic premise underlying the RDA investment policy is to
, insure the safety of principal and to provide money when needed. A high
dollar yield on investment, though important, ranks third in the priority
of investment strategy.
' NOW, THEREFORE BE IT RESOLVED BY THE REDEVELOPPIENT AGENCY
BOARD OF DIRECTORS
' OF THE CITY OF LAKE ELSINORE
AS FOLLOWS
That an annual Statement of Investment Policy for the RDA
of the City of Lake Elsinore has been filed by the RDA
Treasurer for the calendar year 1986 in compliance with
Section 53646 (A) of the Government Code of the State of
Californa.
I PASSED, APPROVED AND ADOPTED this llth day of Februarv ~
Ii ~ 1986 by the following vote:
AYES: BOARDMEMBERS: KNIGHT, MATSON, STRI~OTTE, VERMILLION,
MATSON
NOES: BOARDMEMBERS: NONE
ABSENT: BOARDMEMBERS: NONE
ABSTENTIONS: BOARDMEMBERS: NONE
~\~~--'~ -~ ~em..
J!/ OHN ~IATSON, CHATRMAN
REDEVELQPMENT AGcNCY
A
-~ ~
' ~ECRE7ARY, L KE ELSINORE
', REDEVELOPMEN AGENCY
JOHN R. HARPER, RDA
CITY OF LAKE ELSINORE
APPROVED AS TO FORM:
• CIVIL CODE
§ 2261. jInvestmenf of funds] "
(1) In investing, reinvesting, purchasing, acquiring, exchanging, selIing
and managing property for thr berreflt of another, a trustee shall
exercise the judgment and care, under the circumstanca then prevail-.
" ing, which men of prudence, discretion and intelligence exercise in the
management of their own affairs, not in regard to spcculation, but in
regard to the permanrnt disposition of their funds, considering the
probable income, az weIl at the probable safety of their capitaL
Within the limitations of the.foregoing standard, and subject to any
express provisions~ or limitations concained in any particular trust
instrumcnt, a irustee is authorized to acquire every kind of property,
real, personal or mixed, and every kind of investment, specifically
including, but not by way of limitation, coiporate obiigations of every
kind, and stocks, preferred or common, ahich men of prudence,
discretion and inteiligence acquire for their own account
(2) In the absence of expraa provisions to the contrary in the trust
instrumcnt, a trustee may continue to hold property received into a
trust at iu inception or subsequently added to it or acquired pursuant
to proper authority if and as long as the trustee, in the ezercise of
good faith and of reasonable prudence, discretion and intelIigrnce,.
may consider ihat retention is in the bat interau of the trust. Such
propeny may include stock in the trustee, if a corporation, and stock
t in any coiporation controlIing, controlled by, or. under common
~ control with such trustee
(3) In the absence of expras provisions to the contrary in ihe trust
. instrument, a deposit of trust funds at interat in any bank (inc3uding
• the trustee, if a bank) shall be a qualified investment to the extrnt
that such deposit is insured under any pracnt or future law of the ~
United 5tata, or Zo such greater extent as ~ eourt of compctent
jurisdiction may authorizc Nothing in this sect~on shall be consuued
as Iimiting the right of trustea in proper casa to make deposiss of ~
tnut moneys in banks, subjcct, in the case of interat-bcaring deposits,
to such notice or othcr conditions rapecting withdrawal as may iie
pracribed by law or governmental regulation affecting such dcposiu.
: (4) Nothing in this section shall abrogate or ratrict the power of the ,
appropriate court in proper casa to direct or permit the trustee to
-9-
., ' CIVIL CODE
BE~EFIT ~F THIRD PERSOTiS ~ =~1
detiiate irom thc tcrms of thc trust rcgarding tbc making or rctcation
of in~cstmcnts.
.. (S) Thc provisions of this scction shall apply to sIl trusts aoQ• custing
• or bercaftu crcated. ~'bcre, in trusu noa~ czisting or hercafur
~" crcatcd, ihc tcnn "investmrntt pcrmissible by la~• for invcstmrnt of
trust funds;' oz "euthorized bp lacc~ for invcstmcnt of trusl funds,^
.•')cga] invcstmcnu;' or "suthorized investmenu;' or othcr o+ords oi
• similaz import arc nscd in defining 2he pov.•crs oi thc trustcc rdativt
to invcstments, such Iznguags, in the absu,ce of ~thcr controlling or
modif~~ng pro~isions of the trust instrumnnt, slial] be conslrued as
suthorizing any invcstmcnt pcrmittcd by thc tcrms of subdivision (1)
of this se:sioa.
(6) Thc tcrm "propcrty° as used in this scction includcs life insur-
anct, endox~ment, and annuity eontracu issucd by ]cgal rescrve
eompanies authorizcd to do busincss in this state
En~ned 1872; Amrnded Ssatt 19<3 eD 81l ~ 7 9]602: Snu 1967.[fi 6SS ~ 1 p 20Si. tL 1706
~ 1 p<.65, Suu 1965 cb 161 ~ I p 365; Suu 1969 cb 259 ¢ 1 p 611. .
Prior L~•: Fidd't Draft T'Y CC ~ 1144. •
Amendmenie
~ 1933 Amendment Prier to 19<3 thc s~tion trid: 'X trvna muri invest moory
rrui.ed b~ him undc the wst, u ias; as he ealleets ~ sufrident amoun~ ia wtb
~ mannp as to a5otd rriconsble seeurit}~ end inierat for the same"
19<3 Amendment -mrnded the eettion to r~L as at praent e:eept for 1hc ~oIlowunj
'. Amendmrnti
196~ Amrndment: (1) Adbed ihe second untenet of subd (2J: R) delned 'e~~'in¢ .
banl or thc nvings dcyartmrnt of ariy" afia ~interezt in s~y' in subd (3); aad .
.. ~(3) delned "tht avings depanmrnt of' ~tttt "(ineludinl in subd (3}
1965 Ammdment Adtled snbd (6}. . '
1D69 Amendment Addra ", md nock in any eorporation eoatroliing. mntrolleQ by.
or undcr wmmon control ~iih cuch srucia' a~ ahc enC a~ wDd R} . .
Gxc Referenem ~ - ~
Liabiii~y of ~rusta in oonncttion w9th icsuc of shares~ Corp C~<31 . ~ ~'
~ ~ Investmcnt of trust funds reedre~ b}• trust eompaay: Fm C f 1~561.
~ Dcposit of trusi~eompany funds ~~ai:ing imestmrnt or d~stribution: Fin C~ SS62. ~ ~
ReFisvatinn oi uoek beld in wsi in nimc o1 aomina of wn eompanS: ~m C
@ 1563. .
Gommoa trust funds: Fin C 4 756(• '
' - ShaTes of ea~ings and loaa assoeiations u kFal invatmrnu: Fm C§~7•
lnvntmem eenifiuta iuued b~• u~inFs ae0 lw~ assxinions as le~at iv~cstmmu:
Fro C 4 WW& .
F~erat csvings ~nd ban essocirtimu: Fin C{ 71207. - '
.. ~ Nationat monFagc usociuion obliFaurnu: Fm C~f 2?000 a wq. ~ . .
Farm iwn boads- Go. C~ 6860. ~
Pcnsion trust fun6s~ Go~ C{ 532165.
_ Investmem of unearnw' premium reserve of t~tlc insmm fnc C¢ 123E3.
~ Monpgc panieipation eenifiu~e+ ind ueurnia =uaranted by monFaFe polieia ~t
.- kFa] invesimmu for wsi fund:: las C~ 32528. • .
Gcnifiutc ~nd iraacfers of th+rn~ or osAer securitiet beld b; Sduriaria: UC:
G s~-
Fstablishmrnt-of rammos~ trusts bY ~Dc-snmrnt of Mmta) Ku1ih. tti' li 3 C~ 72i4
Municipal vafn dutrict Dondi. K'a~ Uncod An K7.
STATE OF CALIFORNIA )
) ss.
COUNTY OF RI~ERSIDE )
I, Jo Ann Money, Clerk of the Board of the Redevelopment Agency ,
of the City of Lake Elsinore, DO HEREBY CERTIFY that the foreaoing resolution I
was duly adopted by the Board of Directors of said Agency at a regular ~
meeting of said Board held on the llth day of February , !
I ~9$fi.- and that it was so adopted by the following vote:
AYES: BOARDMEMBERS: KNIGHT, MATSON, STRIGOTTE, VERMILLION, ~ALENZUELA '
NOES: BOARDMEMBERS: NONE I
ABSENT: BOARDMEMBERS: NONE I~
ABSTENTIONS: BOARDMEMBERS: NONE '
ANN MONEY, ERK OF T BOARD
EVELOPMENT AGENCY HE
ITY OF LAKE ELSINOR '
(SEAL)
- STATE OF CALIfORNIA )
' ) ss.
' COUNTY OF RIVERSIDE )
I, Ron Molendyk, Secretary of the Redevelopment Agency of the
City of Lake Elsinore, DO HEREBY CERTIFY that the above and foregoing II
is a full, true and correct copy of Resolution No. CRA 86-1, of said
Agency and that the same has not been amended or repealed.
DATED: February 18, 1986
C---,~
REDEVELOPMEt~T AGENCY Of THE
CITY OF LAKE ELSINORE
-- (SEAL,I
RESOLUTION N0. CRA 86-2
' A RESOLUTION OF THE BOARD OF DIRECTORS OF THE LAKE
ELSINORE REDEVELOPMENT AGENCY, APPROVING AND ADOPTING
' THE BUDGET FOR THE 1986-87 FISCAL YEAR AND APPROPRIATING
' FUNDS THEREOF.
WHEREAS, that certain document entitled "Budget Fiscal Year
1986-87 LAKE ELSINORE REDEVELOPMENT AGENCY" on file in the office of
the Secretary, is hereby approved as the budget for the Lake Elsinore
' Redevelopment Agency for the fiscal year 1986-87 to the extent of the
totals set forth for operating the Redevelopment Agency; and
WHEREAS, the sum of $1,207,143 is hereby appropriated for the
purpose of carrying on the business of the Lake Elsinore Redevelopment
Agency; and
WHEREAS, the Directors, from time to time, by motion or
resolution, may approve and authorize the payment of non-budgeted demands
~ from appropriated funds; and may appropriate for budgeted and non-
budgeted items, and any such appropriation for a non-budgeted item shall
constitute an approval to issue a warrant in payment of a proper demand
or demands therefore.
NOW, THEREFORE, BE IT RESOLVED THAT the Secretary shall cause
, this resolution to be published once within fifteen days after its
passage, in the Lake Elsinore Sun-Tribune newspaper as required by
Section 36933 of the Government Code, shall certify to the adoption and
publication of this resolution, and',shall cause this resolution and his
certification, together with proof of publication, to be entered in the
Book of Resolutions of the Lake Elsinore Redevelopment Agency.
NOW, THEREFORE, BE IT FURTHER RESOLVED that this resolution,
being a resolution appropriating funds needed for the usual and current
expenses of the Agency, shall become effective and in full force immediately
upon its passage.
PASSED, APPROVED AND ADOPTED this 8th day of July, 1986, by the
following vote:
AYES: BOARDMEMBERS: DOMINGUEZ, KATSON, bJINKLER, STRIGOTTE
NOES: BO9RDMEMBERS: VERMILLION
ABSENT: BOARDMEMBERS: NONE
ABSTENTIONS: BOARDMEMBERS: NONE
OH<u~S~CHAI~
REDEVELOPMENT AGENCY
ATTEST:
REDEVELOPMEN~ AGENCY
STATE OF CALIFORNIA )
) ss.
COUNTY OF RIVERSIDE )
I, Jo Ann Money, Clerk of the Board of the Redevelopment Agency
of the City of Lake Elsinore, D0 HEREBY CERTIFY that the foreqoing resolution
was duly adopted by the Board of Directors of said Agency at a regular
meeting of said Board held on the gth day of ~~~y ,
1986', and that it was so adopted by the following vote:
AYES: BOARDMEMBERS: DOMINGUEZ, MATSON, WINKLER, STRIGOTTE
NOES: BOARDMEMBERS: VERMILLION
ABSENT: BOARDMEMBERS: NONE
ABSTENTIONS: BOARDMEMBERS: NONE
„
EVELOPMENT AGENCY OF
TY OF LAKE ELSINORE
(SEAL)
_ STATE OF CALIFORNIA )
f_
) ss.
' COWNTY OF RIVERSIDE )
I, Ron Molendyk, Secretary of the Redevelopment Agency of the
City of Lake Elsinore, DO HEREBY CERTIFY that the above and foregoing
is a full, true and correct copy of Resolution No. CRA 86-2, of said
Agency and that the same has not been amended or r.epealed.
DATED: July 9, 1986
C~`~~~ y~, _c.~c~-~j~-~
- _(
RON MOLENDYK,'SECRETARY
REDEVELOPMENT AGENCY OF THE
CITY OF LAKE ELSINORE
(SEAL)
RESOLUTION N0. 86-53
RESOLUTION N0. CRA 86-3
A JOINT RESOLUTION~OF THE CITY COUNCIL AND THE REDEVELOP-
I MENT AGENCY OF THE CITY OF LAKE ELSINORE, CALIFORNIA,
' SUPPORTING THE FORMATION OF THE 1986 ELSINORE VALLEY
' BENEFIT ASSESSMENT DISTRICT BY THE RIVERSIDE COUNTY
' FLOOD CONTROL AND WATER CONSERVATION DISTRICT.
WHEREAS, the Riverside County Flood Control and Water Conservation
District has recognized the need for the construction of major storm water
control facilities in the Elsinore Valley; and
WHEREAS, some of those needed facilities are within the boundaries
' of the City of Lake Elsinore and/or the City of Lake Elsinore Community
Redevelopment Agency; and
, WHEREAS, said district has proposed formation of an assessment
district to partially fund the construction of these facilities and has
caused the preparation of an Engineer's Report relative to said formation
which identifies proposed projects, estimates construction and financing
costs and sets forth benefit assessment formulas and total revenues; and
, WHEREAS, the City Council and Redevelopment Aaency of the City of
Lake Elsinore are in support of this program with certain qualifications.
NOW, THEREFORE, BE IT RESOLVED that the City Council and the
Redevelopment Agency of the City of Lake Elsinore do hereby find, declare and
determine as follows:
1. That the City and Redevelopment Agency concur with the findings
of the Riverside County Flood Control and Water Conservation
' Disirict that there is a severe need for flood control
facilities in the Elsinore Valley and support the formaiion
of an assessment district to partially fund the construction of
these fiacilities.
z". Tnat the City and/or Redevelopment Agency will participate in
additional funding, to be determined.
3. Thai the District consider the augmentation of Project Funding
through an appropriate increase in the amount of the per BAU
PASSED, APPROVED AND
1986, by the followin9 vote:
AYES: BOARDMEMBERS:
NOES: BOARDMEMBERS:
ABSENT: BOARDMEMBERS:
ABSTENTIONS: BOARDMEMBERS:
ADOPTED this 22nd day of July ,
DOMINGUEZ, MATSON, WINKLER, VERMILLION,
STRIGOTTE
NONE
NONE
NONE
~~~ ~
~N MATSON CHAIRMAN
REDEVELOPMENT AGENCY
ATTEST:
~
~I o Ann Oliver, Clerk of the Board
RESOLUTION NO. CRA 86-4
RESOLUTION OF THE REDEVELOPMENT AGENCY
OF THE CITY OF LAKE ELSINORE, RIVERSIDE
COUNTY, CALIFORNIA, AUTHORIZING THE
ISSUANCE OF $3,600,000 PRINCIPAL AMOUNT
OF TAX ALLOCATION BONDS, SERIES 1986,
RANCHO LAGUNA REDEVELOPMENT PROJECT
AREA NO. 22
I ' WHEREAS, the Redevelopment Aqency of the City of Lake
Elsinore (the ~'Agency") is a redevelopment agency, a public
body, corporate and politic, duly created, established and
', authorized to transact business and exercise powers under and
pursuant to the provisions of the Community Redevelopment Law of
the State of California, including the power to issue bonds for
' any of its corporate purposes; and
' WHEREAS, the Redevelopment Plan for Rancho Laguna Redevelop-
', ment Project Area No. II, in the City of Lake Elsinore,
California, has been adopted in compliance with all requirements
', of law; and
WHEREAS, the Agency has determined to issue bonds to aid in
' the financing of the Redevelopment Project as provided in this
Resolution:
NOW, THEREFORE, the Redevelopment Agency of the City of Lake
Elsinore does hereby RESOLVE, DETERMINE AND ORDER as follows:
ARTICLE 2
AUTHORIZATION OF BONDS; DEFINITIONS
Section 1.01. Authorization. The Agency has reviewed all
proceedings heretofore taken and has found, as a result of such
review, and hereby finds and determines, that all things;
conditions and acts required by law to exist, happen or be
performed precedent to and in connection with the issuance of
the Bonds do exist, have happened and have been performed in due
time, form and manner as required by law, and the Agency is now
duly empowered, pursuant to each and every requirement of law,
to issue the Bonds in the manner and form provided in this
Resolution.
Section 1.02. Definitions. Unless the context otherwise
requires, the terms defined in this Section 1.02 shall, for all
purposes of this Resolution, of any resolution supplemental
hereto, and of any certificate, opinion or other document herein
mentioned, have the meanings herein specified.
"Additional Bonds" means Bonds of the Agency issued in
accordance with Section 3.03.
"Agency" means the Redevelopment Agency of the City of Lake
Elsinore, Riverside County, California, a public body, corporate
and politic, established under the Law.
"Annual Debt Service" means, for each Fiscal Year, the sum
of:
(a) The interest payable on the Outstanding Bonds in such
Fiscal Year, assuming that the Outstanding Serial Bonds
are retired as scheduled and that the outstanding Term
Bonds are redeemed from Minimum Sinking Account
Payments as scheduled;
l___
(b) The principal amount of the Outstanding Serial Bonds
payable by their terms in such Fiscal Year; and
(c) The principal amount of the Outstanding Term Bonds
scheduled to be paid or called and redeemed from
Minimum Sinkinq Account Payments in such Fiscal Year,
excluding the redemption premiums, if any, thereon.
"Articles", "Sections" and other subdivisions refer to the
corresponding Articles, Sections or subdivisions of this
, Resolution, and the words "herein," hereof," "hereunder" and
other words of similar import refer to this Resolution as a
whole and not to any particular Article, Section or subdivision
hereof.
"Bondowner" or "Owner" means any person who shall be the
person in whose name any Outstanding Bond shall be registered.
"Bonds" means the Redevelopment Agency of the City of Lake
Elsinore, Rancho Laguna Redevelopment Project Area No. II, Tax
Allocation Bonds, Series 1986 and, to the extent required by any
Supplemental Resolution, any Additional Bonds authorized by, and
at any time outstanding pursuant to, this Resolution or any
Supplemental Resolution.
"Business Day° means a day which is not a Saturday or
Sunday, which is not a bank holiday under the laws of the United
States or State of California and on which the New York Stock
Exchange is not closed.
"Chairperson" means the chairperson of the Agency appointed
pursuant to Section 33113 of the Health and Safety Code of the
State of California, or other duly appointed ofPicer of the
Agency authorized by the Agency by resolution to perform the
functions of the chairperson in the event of the chairperson's
absence or disqualification.
"City" means the City of Lake Elsinore, Riverside County,
California.
"County" means the County of Riverside, California.
"County Assessor" means the person who holds the office
designated Assessor for the County from time to time, or one of
his duly appointed deputies, or any person or persons performing
substantially the same duties in the event said office is ever
abolished or changed.
"COUnty Auditor-Controller" means the person who holds the
office designated Auditor-Controller for the County from time to
time, or one of his duly appointed deputies, or any person or
persons performing substantially the same duties in the event
said office is ever abolished or changed.
, "Federal Securities" means United States Treasury notes, '
, bonds, bills or certificates of indebtedness or other '
', obligations for which the faith and credit of the United States '
are pledged for the payment of principal and interest, including
United States Treasury (book entry) certificates, notes and
' bonds, state and local government series; obligations issued by
banks for cooperatives, federal land banks, federal farm credit
banks, federal intermediate credit banks, federal home loan ~
banks, the Federal Home Loan Bank Board, the Tennessee Valley ~
, Authority, or obligations, participations, or other instruments '
' of or issued by, or fully guaranteed as to principal and '
, interest by, the Federal National Mortgage Association, or
participation certificates evidencing beneficial interests in
obligations, or in the right to receive interest and principal '
collections therefrom, which obligations have been subjected by ~I
one or more government agencies to a trust or trusts for which ~
2
any executive department, aqency or instrumentality of the
United States (or the head thereof) has been named to act as ,
trustee, all as and to the extent that the Agency determines I
such securities to be eligible for the legal investment of I
Agency funds and so certifies to the Fiscal Agent. ',
"Einancial Newspaper" means a newspaper or financial journal
published in either New York, New York or Los Angeles,
California.
I "Fiscal Agent" means the Fiscal Agent appointed by the
' Agency, its successors and assigns, and any other corporation or
association which may at any time be substituted in its place,
as provided in Section 6.01.
"Fiscal Year" means any twelve-month period extending from
July 1 in one calendar year to June 30 of the succeeding
calendar year, both inclusive, or any other twelve-month period
hereafter selected and designated by the Agency as its official
fiscal year period.
"Independent Certified Public Accountant" means any
, accountant or firm of such accountants duly licensed or
registered or entitled to practice and practicing as such under
the laws of the State of California, appointed by the Agency,
, and who, or each of whom:
(a) Is in fact independent and not under domination of the '
Agency; ',
', (b) Does not have any substantial interest, direct or
, indirect, with the Agency; and
, (c) Is not connected with the Agency as an officer or
, employee of the Agency, but who may be regularly
retained to make reports to the Agency.
"Independent Financial Consultant" means any financial
consultant or firm of such consultants appointed by the Agency,
and who, or each of whom:
(a) is in fact independent and not under domination[on of
the Agency;
(b) Does not have any substantial interest, direct or '
indirect, with the Agency; and
', (c) Is not connected with the Aqency as an officer of '
', employee of the Agency, but who may be regularly I
' retained to make reports to the Agency. ~,
"Independent Real Estate Consultant" means any real estate
consultant or firm of such consultants appointed by the Agency,
and who, or each of whom: ,
(a) Is in fact independent and not under domination of the
Agency; '
(b) Does not have any substantial interest, direct or
indirect, with the Agency; and
' (c) Is not connected with the Agency as an officer or
, employee of the Agency, but who may be regularly
retained to make reports to the Agency.
"Interest Payment Date'~ means September 1 and March 1 of
each year commencing September 1, 1988.
"Law" means the Community Redevelopment Law of the State of
, California, constituting Part 1 of Division 24 of the Health and
3
Safety Code of the State of California, and the acts amendatory
thereof and supplemental thereto, as now in effect
"Maximum Annual Debt Service" means the largest Annual Debt
Service during the period from the date of the Bonds through the
final maturity date of any Outstanding Bonds.
"Mininum Sinking Account Payments" means the amount of money
to be deposited into the Term Bond Sinking Account to be used to
redeem Term Bonds, at the principal amounts thereof, plus
premium, if any, in the amounts and at the times set forth in
the applicable schedule or schedules of Minimum Sinking Account
Payments contained in this Resolution.
"Opinion of Counsel" means a written opinion of an attorney
or firm of attorneys of favorable reputation in the field of
municipal bond law. Any opinion of such counsel may be based
upon, insofar as it relates to factual matters, information
which is in the possession of the Agency as shown by a
certificate or opinion of, or representation by, an officer or
officers of the Agency, unless such counsel knows, or in the
exercise of reasonable care should know, that the certificate of
opinion of, or representation with respect to the matters upon
his opinion may be based, aforesaid, is erroneous.
"outstanding", when used as of any particular time with
reference to Bonds, means (subject to the provisions of Section
7.03) all Bonds except:
(a) Bonds theretofore cancelled by the Fiscal Agent or any '
Paying Agent or surrendered to the Fiscal Agent for
cancellation;
(b) Bonds paid or deemed to have been paid within the
meaning of Section 10.03; and
(c) Bonds in lieu of or in substitution for which other
Bonds shall have been authorized, executed, issued and
delivered by the Agency pursuant to the Resolution or
any Supplemental Resolution.
"Parity Bonds" means any additional tax allocation bonds
(including, without limitation, bonds, notes, interim
certificates, debentures or other obligations) issued by the
Agency as permitted by Section 3.03 of this Resolution.
"Paying Agent" means any paying agent provided by the Agency
pursuant to this Resolution.
"Pre-existing Obligations" means the contractual and I
statutory obligations secured by a pledge or lien on Tax '
Increment Revenues superior to the lien securing the Bonds
specified as follows:
(a) Aqreement for Cooperation between Lake Elsinore I
Recreation and Park District, City of Lake Elsinore and '
Redevelopment Agency of the City of Lake Elsinore,
dated April 11, 1984
(b) Agreement between City of Lake Elsinore, Redevelopment
Agency of the City of Lake Elsinore and Elsinore Water
District, dated February 28, 1984
(c) Agreement for Cooperation between Elsinore Valley
Cemetery District, City of Lake Elsinore and
Redevelopment Agency of the City of Lake Elsinore,
dated April 11, 1984
(d) Cooperation Agreement between County of Riverside, City
of Lake Elsinore and Redevelopment Agency of the City
of Lake Elsinore, dated February 28, 1984
4
(e) Cooperation Agreement between Riverside County Flood
Control and Water Conservation District, City of Lake
Elsinore and Redevelopment Agency of the City of Lake
Elsinore, dated January 10, 1984
(f) Agreement for Cooperation between Elsinore Valley
Municipal Water District, City of Lake Elsinore and
Redevelopment Agency of the City of Lake Elsinore,
dated October 15, 1981
,,, "Principal office" means the principal corporate trust
I' office of the Fiscal Agent in San Francisco, California.
"Project" or "Redevelopment Project" means the undertaking
of the Agency pursuant to the Redevelopment Plan and the Law for
, the redevelopment of Rancho Laguna Project Area No. II.
I "Project Area" means the project area described in the
Redevelopment Plan for Project Area No. 22.
"Redevelopment Plan" means the Rancho Laguna Redevelopment
Plan for Redevelopment Project Area No. II, approved by
Ordinance No. 671, enacted by the City Council of the City on
July 18, 1983, together with any amendments thereof duly
authorized pursuant to the Law.
"Regular Record Date" means the close of business on the
fifteenth (15th) day of the month preceding each Interest
Payment Date whether or not such fifteenth (15th) day is a
Business Day.
Report" means a document in writing signed by an Independent
Financial Consultant or an Independent Real Estate Consultant
and including:
(a) A statement that the person or firm making or giving
such Report has read the pertinent provisions of this
Resolution to which such Report relates;
(b) A brief statement as to the nature and scope of the
examination or investigation upon which the Report is
based; and
(c) A statement that, in the opinion of such person or
firm, sufficient examination or investigation was made
as is necessary to enable said consultant to express an
informed opinion with respect to the subject matter
referred to in the Report.
"Reserve Requirement" means an amount equal to Maximum
Annual Debt Service and including any letter of credit or surety
bond permitted pursuant to Section 4.06 hereof.
"Resolution" means this Resolution, adopted by the Agency
under the Law, as originally adopted or as it may be amended or
supplemented by any Supplemental Resolution adopted pursuant to
the provisions hereof.
"Serial Bonds" means Bonds for which no minimum sinking
account payments are provided.
"Supplemental Resolution" or "supplemental resolution" means
__ any resolution then in full force and effect which has been duly
adopted by the Agency under the Law, or any act supplementary
thereto or amendatory thereof, at a meetinq of the Agency duly
convened and held, at which a quorum was present and acted
thereon, amendatory of or supplemental to this Resolution; but
only if and to the extent that such Supplemental Resolution is
specifically authorized hereunder.
5
~._...._._.._. . .
~I
"Tax Increment Revenues" means all taxes allocated and paid
to the Agency pursuant to Article 6 of the Law and Section 19 of
Article XIII of the Constitution of the State of California, and
as provided in the Redevelopment Plan, including all payments
and reimbursements, if any, to the Agency specifically
attributable to ad valorem taxes lost by reason of tax
exemptions and tax rate limitations.
"Tax Revenues" means all taxes allocated and paid to the
Agency pursuant to Article 6 of the Law and Section 19 of
Article XIII of the Constitution of the State of California, and
as provided in the Redevelopment Plan, including all payments
and reimbursements, if any, to the Agency specifically
attributable to ad valorem taxes lost by reason of tax
exemptions and tax rate limitations, after satisfaction in full
of all Pre-existing Obligations.
"Term Bonds" means Bonds which are payable on or before
their specified maturity dates from Minimum Sinking Account
Payments established for that purpose and calculated to retire
such Bonds on or before their specified maturity dates.
"Treasurer" means the Director of Finance of the City or any
other officer of the City or the Agency acting as fiscal officer
of the Agency.
"Written Request of the Agency" or "Written Certificate of
the Agency" means a request or certificate, in writing and
signed by the Chairman, the Treasurer or by any other officer of
the Agency duly authorized by the Agency for that purpose, with
the seal of the Agency affixed.
Section 1.03. Equal Securi~. In consideration of the
acceptance of the Bonds by those who shall hold the same from
time to time, this Resolution shall be deemed to be and shall
- constitute a contract between the Agency and the Owners from
time to time of the Bonds and Additional Bonds and the covenants
and agreements herein set forth to be performed on behalf of the
Agency shall be for the equal and proportionate benefit,
security and protection of all Owners of the Bonds and
Additional Bonds without preference, priority or distinction as
to security or otherwise of any of the Bonds and Additional
Bonds over any of the others by reason of the number or date
thereof or the time of sale, execution and delivery thereof, or
otherwise for any cause whatsoever, except as expressly provided
therein or herein.
ARTICLE II
THE BONDS
Section 2.01. Authorization. Bonds in the aggregate
principal amount of and designated as
, $3,600,000
', Redevelopment Agency of the City of Lake Elsinore ,
Riverside County, California '
, Rancho Laguna Redevelopment Project '
I Area No. II '
' Tax Allocation Bonds, Series 1986
' are hereby authorized to be issued by the Agency under and I
,~ subject to the terms of this Resolution and the Constitution '
' and laws of the State of California. This Resolution
constitutes a continuing agreement with the owners of all of '
, the Bonds issued or to be issued hereunder and then Outstanding I
to secure the full and final payment of principal and premiums,
if any, and the interest on all Bonds which may from time to '
time be executed and delivered hereunder, subject to the
, covenants, agreements, provisions and conditions herein
' contained.
6
Section 2.02. Terms of Bonds. The Bonds may be issued as
fully registered Bonds without coupons in denominations of
$5,000 and any integral multiple thereof, shall be dated
August 1, 1986 and shall be substantially in the form
hereinafter set forth.
The Bonds shall mature and become payable on September 1 in
each year, as follows:
Maturity Principal Maturity Principal
Date Amount Date Amount
(September 1) (September 1)
1988 $30,000 1996 $60,000
1989 30,000 1997 65,000
1990 35,000 1998 70,000
1991 35,000 1999 75,000
1992 40,000 2000 80,000
1993 45,000 2001 90,000
1994 50,000
1995 55,000
$2,840,000 Term Bonds due September 1, 2016
The Bonds shall bear interest at the rates designated by
the Agency at the time of the sale of the Bonds, but not to
exceed twelve percent (12~) per annum, payable on March 1, 1987,
and thereafter semiannually on March 1 and September 1 in each
year.
Each Bond shall bear interest from the interest payment
date next preceding the date of registration and authentication
thereof unless the Bond is registered and authenticated as of an
interest payment date (in which event it shall bear interest from
such interest payment date), or unless the Bond is registered and
authenticated prior to August 15, 1987 (in which event it shall
bear interest from its date), or unless, as shown by the records
of the Fiscal Agent, interest on the Bonds shall be in default
(in which event it shall bear interest from the last date to
which interest has been paid in full), or unless no interest
shall have been paid on the Bonds (in which event it shall bear
interest from its date). Such interest shall be payable from
such date to the date of maturity or earlier redemption of the
Bonds.
Payment of principal, premium and interest shall be made in
lawful money of the United States of America. Principal of and
premium on the Bonds shall be paid only upon presentation and
surrender thereof for cancellation at the principal office of the
Fiscal Agent. Payment of the interest on any Bond shall be made
to the person whose name appears on the Bond registration books
of the Fiscal Agent as the registered Owner thereof as of the
close of business on the fifteenth (15th) day of the month next
preceding an interest payment date, whether or not such day is a
business day, such interest to be paid by check or draft mailed
to such registered Owner at his or her address as it appears on
such registration books.
Section 2.03. Redembtion.
(a) Optional Redembtion. Bonds maturing on or before
8eptember 1, 1995, shall not be subject to redemption
before their stated maturity. Bonds maturing by their
terms on or after September 1, 1996, are subject to
redemption in whole, or in part by lot, upon notice as
hereinafter provided, at the option of the Agency, on
any March 1 or September 1 on or after September 1,
1995, by written notification to the Fiscal Agent
sixty (60) days in advance of such date, from any
7
available source of funds, at a redemption price equal
to the principal amount thereof to be redeemed
together with accrued interest thereon to the
redemption date plus a premium (expressed as a
percentage of the principal amount of Bonds to be
redeemed) as follows:
Redemption Dates RedemAtion Price
September 1, 1995 and March 1, 1996 102.00%
September 1, 1996 and March 1, 1997 101.50~
September 1, 1997 and March 1, 1998 101.00~
September 1, 1998 and March 1, 1999 100.50~
September l, 1999 and thereafter 100.00~
(b) Sinkina Account Redemption. Bonds maturing on
September 1, 2016, shall also be subject to redemption
in whole, or in part by lot, upon notice as
hereinafter provided, or any September 1 on or after
September 1, 2002, from Minimum Sinking Account
Payments made by the Agency pursuant to Section
4.06(c), at a redemption price equal to the principal
amount thereof to be redeemed together with accrued
interest thereon to the redemption date, without
premium.
(c) Special Mandatorv Redemption. On September 1, 1989, a
portion of the Bonds will be subject to special
mandatory redemption at par plus accrued interest
thereon from funds transferred from the Escrow Fund to
the Redemption Fund, pursuant to Section 4.07. The
special mandatory redemption shall reduce, in inverse
order, the maturities and Sinking Account Payments
with respect to the Bonds approximately pro rata in
each year of the maturities and Sinking Account
Payments.
(d) Additional Bonds. Any Additional Bonds may be made
subject to redemption prior to maturity, as a whole or
in part, at such time or times, and upon payment of
the principal amount thereof and accrued interest
thereon plus such premium or premiums, if any, as may
be determined by the Agency in the Supplemental
Resolution providing Por the issuance thereof. Such
Supplemental Resolution shall provide that in the
event that some but less than all of the Bonds and of
the Additional Bonds outstanding are to be redeemed at
any one time, such Additional Bonds redeemed shall be
in the proportion that the principal amount of
Outstanding Additional Bonds bears to the total
principal amount of all the then outstanding Bonds and
Additional Bonds.
(e) Notice of Redembtion. The Fiscal Agent on behalf and
at the expense of the Agency shall cause notice of any
redemption to be mailed to the respective registered
Owners of any Bonds designated for redemption, at
least twenty (20) but not more than sixty (60) days
prior to the redemption date, at their address
appearing on the Bond registration books in the office
of the Fiscal Agent. Any defect in any such notice
shall not affect the validity of the proceedings for
the redemption of such Bonds. Such notice shall state
the redemption date and the redemption price and, if
less than all of the then outstanding Bonds are to be
called for redemption, shall designate the numbers of
the Bonds to be redeemed by giving the individual
number of each Bond or by stating that all Bonds
between two stated numbers, both inclusive, or by
stating that all of the Bonds of one or more
maturities have been called for
require that such Bonds be then
office of the Fiscal Agent for
redemption price, giving notice
interest on such Bonds will not
redemption date.
redemption, and shall
surrendered at the
redemption at the said
also that further
accrue after the
Notice of redemption having been given in the manner
provided above, and money sufficient for the
redemption being held by the Fiscal Agent for the
purpose thereupon the Bonds so called for redemption
shall become due and payable on the redemption date,
and interest thereon shall cease to accrue. The
registered Owners of the Bonds so called for
redemption shall thereafter no longer have any
security or benefit under this Resolution except to
receive payment of the redemption price for such Bonds.
(e) Partial Redemption of Fullv Registered Bonds. In the
event only a portion of any Bond of a denomination
larger than $5,000 is called for redemption, then upon
surrender of such Bond redeemed in part only, the
Agency shall execute and the Fiscal Agent shall
deliver to the registered Owner, at the expense of the
Agency, a new fully registered Bond or Bonds of the
same series and maturity and of authorized
denominations in aggregate principal amount equal to
the unredeemed portion of the Bond or Bonds so
surrendered.
(f) Effect of Redemption. After the date fixed for
redemption, if notice of such redemption shall have
been duly mailed and funds available for the payment
of the principal of and interest (and premium, if any)
on the Bonds so called for redemption shall have been
duly provided, such Bonds so called shall cease to be
entitled to any benefit under this Resolution other
than the right to receive payment of the redemption
price, and no interest shall accrue thereon on or
after the redemption date specified in such notice.
(g) Manner of Redembtion. Whenever any Bonds are to be
redeemed, the Fiscal Agent shall select such Bonds in
inverse order of maturity and by lot within a maturity
and shall notify the Agency of the numbers of Bonds to
be redeemed.
The Fiscal Agent shall determine, in sufficient time to
give the notices required by this Section, what sums will be
available on the next interest payment date in accordance with
this Resolution, and shall cause notice to be given in accordance
with such determination Any notice of redemption may be cancelled
if for any reason funds are not available on the date fixed for
redemption for the payment in full of the Bonds then called for
redemption.
All Bonds redeemed pursuant to this Section and all Bonds
' purchased by the Fiscal Agent pursuant to Section 4.07(c) shall
be cancelled and shall be surrendered to the Agency.
, Section 2.04. Redemption Fund. Moneys to be used for
redemption of Bonds shall be deposited by the Fiscal Agent in a
Redemption Fund, which shall be a special fund to be held in
, trust by the Fiscal Agent, separate and apart from all other
i funds. Those moneys shall be set aside in the Redemption Fund
solely for the purpose of redeeming the Bonds in advance of their
', ~ maturity and shall be applied on or after the Payment Date
designated for redemption to the payment of principal and
~ interest with respect to the Bonds to be redeemed upon
~ presentation and surrender of such Bonds.
U
Section 2.05. Form of Bonds. The Bonds, the form of
Fiscal Agent's certificate of authentication and registration,
and, assignment to appear thereon, shall be substantially in the
following forms, respectively, with necessary or appropriate
variations, omissions and insertions, as permitted or required by
this Resolution:
(FORM OF BOND)
No.
UNITED STATES OF AMERICA
STATE OF CALIFORNIA
COUNTY OF RIVERSIDE
REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE
RANCHO LAGUNA REDEVELOPMENT PROJECT AREA NO. II
TAX ALLOCATION BONDS, SERIES 1986
INTEREST RATE MATURITY DATE ORIGINAL ISSUE DATE CUSIP
REGISTERED OWNER:
PRINCIPAL AMOUNT:
DOLLARS
The Redevelopment Agency of the City of Lake Elsinore, a
public body, corporate and politic, duly organized and existing
under the laws of the State of California (the "Agency"), for
value received, hereby promises to pay to Registered Owner (named
above) or registered assigns, on the Maturity Date (stated
above), subject to any right of prior redemption hereinafter
provided for, the Principal Amount (stated above) in lawful money
of the United States of America, and to pay interest thereon in
like lawful money from the Interest Payment Date (defined below)
next preceding the date oP authentication of this Bond, unless
(i) this Bond is registered and authenticated as of an Interest
Payment Date, in which event it shall bear interest from such
Interest Payment Date, (ii) this Bond is registered and
authenticated prior to September 15, 1987, in which even this
Bond shall bear interest from the Original Issue Date (stated
above) or (iii) this Bond is dated after a Record Date (defined
below), but before the next succeeding Interest Payment Date, in
which event this Bond shall bear interest from such succeeding
Interest Payment Date, provided, however, that if, as shown by
the records of the Fiscal Agent, interest on the Bonds shall be
in default, then this Bond shall bear interest from the last date
to which interest has been paid in full, or if no interest shall
have been paid on the Bonds, then this Bond shall bear interest
from the Original Issue Date. Such interest is payable from such
date to the Maturity Date or earliest redemption of this Bond at
the Interest Rate (stated above) per annum, payable on the first
day of March and the first date of September of each year com-
mencing March 1, 1987 (the "Interest Payment Date"). Payment of
interest hereon will be made to the Registered Owner hereof by
check or draft mailed to the Registered Owner at his address as
it appears on the registration books maintained by the Fiscal
Agent or at such other address as is furnished to the Fiscal
Agent in writing by such Registered Owner. The interest so
payable, and punctually paid or duly provided for, on any
Interest Payment Date will be paid to the person in whose name
this Bond is registered at the close of business on February 15
or August 15 (whether or not a business day), as the case may be,
next preceding such Interest Payment Date (the "Record Date").
Both the principal hereof, premium, if any, and interest hereon
10
are payable at the principal corporate trust office of Bank of '
America National Trust and Savings Association, the fiscal agent I
of the Agency (the "Fiscal Agent"), in San Francisco, California. ',
This Bond is one of a duly authorized issue of bonds of the '
Agency designated as the "Redevelopment Agency of the City of ;
Lake Elsinore, Rancho Laguna Redevelopment Project Area No. II, ',
Tax Allocation Bonds, Series 1986 (the "BOnds"), of an aggregate '
principal amount of Three Million Six Hundred Thousand Dollars
($3,600,000), all of like tenor and date (except for such I
variation, if any, as may be required to designate varying '
series, numbers, maturities, interest rates or redemption '
provisions) and all issued pursuant to the provisions of the
Community Redevelopment Law, beinq Part 1(commencing with
Section 33000) of Division 24 of the Health and Safety Code of '
the State of California (the "Law") and pursuant to Resolution
No. CRA 86-4 of the Agency adopted on August 7, 1986 (the '
"Resolution"), authorizing the issuance of the Bonds. Additional ,
Bonds may be issued on a parity with the Bonds, but only subject ~,
to the terms of the Resolution. Reference is hereby made to the I
Resolution (copies of which are on file at the office of the '
Agency) and all resolutions supplemental thereto and to the Law
for a description of the terms on which the Bonds are issued, the
provisions with regard to the nature and extent of the Tax
Revenues, as that term is defined in the Resolution, and the ,
rights thereunder of the Registered Owners of the Bonds and the '
rights, duties and immunities of the Fiscal Agent and the rights ~
and obligations of the Agency thereunder, to all of the I
provisions of which Resolution the Registered Owner of this Bond, '
by acceptance hereof, assents and agrees.
The Bonds have been issued by the Agency to aid in financing
a redevelopment project in the Rancho Laguna Redevelopment '
Project Area No. II of the Agency.
This Bond and the interest hereon and all other Bonds and
the interest thereon (to the extent set forth in the Resolution)
are payable from, and are secured by a charge and lien on the Tax
Revenues derived by the Agency from the Project Area (as those
terms are defined in the Resolution). To the extent set forth in
the Resolution, all such Tax Revenues (together with all of the
moneys in the Reserve Account, as defined in the Resolution) are
exclusively and irrevocably pledged to and constitute a trust
fund, in accordance with the terms hereof and the provisions of
the Resolution and the Law, for the security and payment or
redemption of, and Por the security and payment of interest on,
the Bonds.
THIS BOND IS NOT A DEBT OF THE CITY OF LAKE ELSINORE, THE
STATE OF CALIFORNIA, OR ANY OF ITS POLITICAL SUBDIVISIONS, AND
NEITHER SAID CITY, SAID STATE, NOR ANY OF ITS POLITICAL
SUBDIVISIONS, IS LIABLE HEREON NOR IN ANY EVENT SHALL TAIS BOND
BE PAYABLE OUT OF ANY FUNDS OR PROPERTIES OTHER THAN THOSE OF THE
AGENCY.
I The rights and obligations of the Agency and the Registered
I Owners of the Bonds may be modified or amended at any time in the
, manner, to the extent and upon the terms provided in the
Resolution, but no such modification or amendment shall permit a
' change in the terms of redemption or maturity of the principal of
any Outstanding Bond or of any installment of interest thereon or
, a reduction in the principal amount or the redemption price
' thereof or in the Interest Rate thereon without the consent of
the Registered Owners of such Bonds or shall reduce the
, percentages or otherwise affect the classes of Bond without the
consent of the Registered Owners of such Bonds.
11
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS
BOND SET FORTH ON THE REVERSE HEREOF, WHICH FURTHER PROVISIONS OF
THIS BOND SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET
FORTH HERE.
It is hereby certified that all of the conditions, things I
and acts required to exist, to have happened or to have been ',
performed precedent to an in the issuance of this Bond do exist, '
have happened or have been performed in due and regular time, '
form and manner as required by the Law and the laws of the State I
of California, and that the amount of this Bond, together with '
all other indebtedness of the Agency does not exceed any limit ,
prescribed by the Law or any laws of the State of California, and I
is not in excess of the amount of Bonds permitted to be issued I
under the Resolution. '
This Bond shall not be entitled to any benefit under the
Resolution or become valid or obligatory for any purpose until
the certificate of authentication and registration hereon
endorsed shall have been signed by the Fiscal Agent.
IN WITNESS WHEREOF, the Redevelopment Agency of the City of
Lake Elsinore has caused this Bond to be executed in its name and
on its behalf with the signature of its Chairperson and its seal
to be reproduced hereon and attested by its Secretary.
REDEVELOPMENT AGENCY OF THE
CITY OF LAKE ELSINORE
By:
Chairperson ,
ATTEST:
Secretary
(SEAL)
[FORM OF BACK OF BOND]
Bonds maturing by their terms on or before September 1,
1995, are not subject to redemption. Bonds maturing on or after ',
September 1, 1996, are subject to redemption at the option of the
Agency from any source of funds as provided in the Resolution,
as a whole, or in part by lot, upon mailed notice as hereinafter I
provided, on any March 1 or September 1 on or after September 1,
1995, at a redemption price equal to the principal amount thereof '
to be redeemed together with accrued interest thereon to the
redemption date, plus a premium (expressed as a percentage of the II
principal amount of Bonds to be redeemed) as follows.
Redemption Dates
Redemption Price
September 1, 1995 and March 1, 1996 102.00%
September 1, 1996 and March 1, 1997 101.50%
September 1, 1997 and March 1, 1998 101.00~
September 1, 1998 and March 1, 1999 100.50%
September 1, 1999 and thereafter 100.00%
Bonds maturing September 1, 2016, are subject to mandatory
redemption, on any September 1 on or after September 1, 2002, at
a redemption price equal to the principal amount thereof to be
redeemed together with accrued interest thereon to the redemption
12
date, without premium, from Minimum Sinking Account Payments made
by the Agency under the Resolution in the years and amounts as
follows:
Year Amount Year Amount
2002 $ 95,000 2009 $175,000
2003 105,000 2010 195,000
2004 115,000 2011 210,000
2005 125,000 2012 230,000
2006 135,000 2013 250,000
2007 150,000 2014 275,000
2008 160,000 2015 295,000
Term Bonds in the amount of $325,000 not redeemed in
accordance with the schedule of Minimum Sinking Account Payments
above shall be paid at maturity on September 1, 2016, at a price
equal to 100~ of the principal amount thereof plus accrued
interest to the date of maturity.
On September 1, 1989, a portion of the Bonds will be
subject to special mandatory redemption at par plus accrued
interest thereon from funds transferred from the Escrow Fund to
the Redemption Fund. The special mandatory redemption shall
reduce the maturities and Sinking Account Payments with respect
to the Bonds approximately pro rata in each year of the
maturities and Sinking Account Payments.
As provided in the Resolution, notice of redemption shall
be given by mail no less tHan twenty (20) nor more than sixty
(60) days prior to the redemption date to the respective
Registered Owners of any registered Bonds designated for
redemption at their addresses appearing on the bond registration
books, but no any defect in the notice so mailed shall affect the
sufficiency of the proceedings for redemption.
If this Bond is called for redemption and payment is duly
provided therefor as specified in the Resolution, interest shall
cease to accrue hereon from and after the date fixed for
redemption.
If an event of default, as defined in the Resolution, shall
occur, the principal of all Bonds may be declared due and payable
upon the conditions, in the manner and with the effect provided
in the Resolution, but such declaration and its consequences may
be rescinded and annulled as further provided in the Resolution.
The Bonds are issuable as fully registered Bonds without
coupons in the denominations of $5,000 and any integral multiple
thereof subject to the limitations and conditions and upon
payment of the charges, if any, as provided in the Resolution.
Fully registered Bonds may be exchanged for a like aggregate
principal amount of fully registered Bonds of other authorized
denominations and of the same maturity.
Registration of this Bond is transferable by the registered
Owner hereof, in person or by his attorney duly authorized in
writing, at the principal corporate trust office of the Fiscal
Agent, but only in the manner, subject to the limitations, and
upon payment of the charges provided in the Resolution, and upon
surrender and cancellation of this Bond. Upon registration of
such transfer, a new fully registered Bond or Bonds without
coupons, of authorized denomination or denominations, for the
same aggregate principal amount and of the same maturity will be
issued to the transferee in exchange herefor.
The Agency and the Fiscal Agent may treat the registered
Owner hereof as the absolute owner hereof for all purposes, and
the Agency and the Fiscal Agent shall not be affected by any
notice to the contrary.
13
(FORM OF FISCAL AGENT'S CERTIFICATE OF AUTHENTICATION ',
TO APPEAR ON REGISTERED BONDS) ~
This is one of the Bonds described in the within-mentioned
Resolution.
Bank of America National Trust
and Savings Association
as Fiscal Agent
Dated: By
Authorized Officer
(FORM OF ASSIGNMENT)
For value received the undersigned do(es) hereby sell, I
assign and transfer unto the
within-mentioned registered Bond and hereby irrevocably '
constitute(s) and appoint(s) i
attorney, to transfer the same on the books of the Fiscal Agent ,
with full power of substitution in the premises.
Dated:
Note: The signature(s) on this Assignment must correspond
with the name(s) as written on the face of the within
registered Bond in every particular, without
alteration or enlargement or any change whatsoever.
Section 2.05. Execution of Bonds. The Bonds shall be '
executed on behalf of the Agency by the signature of its '
Chairperson and the signature of its Secretary who are in I
office on the date of adoption of this Resolution or at any
time thereafter, and the seal of the Agency shall be impressed,
imprinted or reproduced by facsimile signature thereon. Either '
or both of such signatures may be affixed by facsimile
thereof. If any officer whose signature appears on any Bond I
ceases to be such officer before delivery of the Bonds to the '
purchaser, such signature shall nevertheless be as effective as I
if the officer had remained in office until the delivery of the
Bonds to the purchaser. Any Bond may be signed and attested on '
behalf of the Agency by such persons as at the actual date of '
the execution of such Bond shall be the proper officers of the
Agency although on the date of such Bond any such person shall
not have been such officer of the Agency. I
Only such of the Bonds as shall bear thereon a certificate
of authentication in the form hereinbefore recited, executed '
and dated by the Fiscal Agent, shall be valid or obligatory for
an ur ose or entitled to the
Y P P benefits of this ~
Resolution, and
such certificate of the Fiscal Agent shall be conclusive
evidence that the Bonds so registered have been duly !
authenticated and delivered hereunder and are entitled to the
benefits of this Resolution. i
14
Section 2.06. Transfer of Bonds. The registration of any
Bond may, in accordance with its terms, be transferred, upon
the books required to be kept pursuant to Section 2.08, by the
person in whose name it is reqistered, in person or by his duly
authorized attorney, upon surrender of such Bond to the Fiscal
Agent for cancellation, accompanied by delivery of a written
instrument of transfer in a form approved by the Fiscal Agent,
duly executed.
Whenever any Bond or Bonds shall be surrendered for
registration of transfer, the Agency shall execute and the
Fiscal Agent shall deliver a new fully registered Bond or
Bonds, for like aggregate principal amount.
No registrations of transfers of Bonds shall be required to
be made during the fifteen (15) days next preceding each
interest payment date or any date or dates set for selection of
Bonds to be redeemed or of any Bonds selected for redemption.
Section 2.07. Exchange of Bonds. Bonds may be exchanged
at the Principal Office of the Fiscal Agent for a like
aqgregate principal amount of Bonds of other authorized
denominations of the same maturity. The Fiscal Agent shall
require the payment by the Bondowner requesting such exchange
of any tax or other governmental charge required to be paid
with respect to such exchange.
No exchanges of Bonds shall be required to be made during
the fifteen (15) days next preceding each interest payment date
or any date or dates set for selection of Bonds to be redeemed
or of any Bonds selected for redemption.
Section 2.08. Bond Register. The Fiscal Agent will keep
or cause to be kept, at its Principal Office, sufficient books
for the registration and registration of transfer of the Bonds,
which shall at all times during normal business hours be open
to inspection by the Agency, and, upon presentation for such
purpose, the Fiscal Agent shall, under such reasonable
regulations as it may prescribe, register or transfer or cause
to be registered or transferred, on said books, Bonds as
hereinbefore provided.
Section 2.09. Temporary Bonds. The Bonds may be initially
issued in temporary form exchanqeable for definitive Bonds when
ready for delivery. The temporary Bonds may be printed,
lithographed or typewritten, shall be at such denominations as
may be determined by the Agency, shall be without coupons and
may contain such reference to any of the provisions of this
Resolution as may be appropriate. Every temporary Bond shall
be executed by the Agency upon the same conditions and in
substantially the same manner as the definitive Bonds. If the
Agency issues temporary Bonds it will execute and furnish
definitive Bonds without delay, and thereupon the temporary
Bonds may be surrendered, for cancellation, in exchange
therefor at the Principal Office of the Fiscal Agent and the
Fiscal Agent shall deliver in exchange for such temporary Bonds
an equal aggregate principal amount of definitive Bonds of
authorized denominations. Until so exchanged, the temporary
Bonds shall be entitled to the same benefits pursuant to this
Resolution as definitive Bonds authenticated and delivered
hereunder.
Section 2.10. Bonds Mutilated. Lost, Destroyed or Stolen.
If any Bond shall become mutilated, the Agency, at the expense
of the Owner of said Bond, shall execute, and the Fiscal Agent
shall thereupon deliver, a new Bond of like tenor and number in
exchange and substitution for the Bond so mutilated but only
upon surrender to the Fiscal Agent of the Bond so mutilated.
Every mutilated Bond so surrendered to the Fiscal Agent shall
be cancelled by it and delivered to, or upon the order of, the
15
Agency. If any Bond shall be lost, destroyed or stolen,
evidence of such loss, destruction or theft may be submitted to
the Agency and the Fiscal Agent and, if such evidence be
satisfactory to both and indemnity satisfactory to them shall
be given, the Agency, at the expense of the Owner, shall
execute, and the Fiscal Agent sha11 thereupon deliver, a new
Bond of like tenor and number in lieu of and in substitution
for the Bond so lost, destroyed or stolen. The Agency may
require payment of a sum not exceeding the actual cost of
preparing each new Bond issued under this Section and of the
expenses which may be incurred by the Agency and the Fiscal
Agent in the premises. Any Bond issued under the provisions of
this Section in lieu of any Bond alleged to be lost, destroyed
or stolen shall constitute an original additional contractual
obligation on the part of the Agenoy whether or not the Bond so
alleged to be lost, destroyed or stolen be at any time
enforceable by anyone, and shall be equally and proportionately
entitled to the benefits of this Resolution with all other
Bonds issued pursuant to this Resolution.
ARTICLE I2I
ISSUANCE OF BONDS; APPLICATION OF PROCEEDS;
ADDITIONAL BONDS
Section 3.01. Issuance of Bonds. At any time after the
adoption of-this Resolution,--the Agency may se11 and deliver
Bonds in the aggregate principal amount of and designated as
$3,600,000
Redevelopment Agency of the City of Lake Elsinore
Riverside County, California
Rancho Laguna Redevelopment Project
Area No. II
Tax Allocation Bonds, Series 1986
Section 3.02. Application of Proceeds of Sale of Bonds.
Upon the receipt of payment for any of the Bonds when the same
shall have been sold by the Agency, the proceeds thereof shall
be paid to the Fiscal Agent, who shall forthwith set aside, pay
over and deposit such proceeds and funds as follows:
(a) The Fiscal Agent shall pay for deposit in the Bond
Interest Account, established pursuant to Section
4.05, the amount of accrued interest and premium (if
any) received upon the sale of the Bonds;
(b) The Fiscal Agent shall pay for deposit in the Reserve
Account, established pursuant to Section 4.05, an
amount from Bond proceeds equal to Maximum Annual Debt
Service;
(c) The Fiscal Agent shall pay for deposit in the Escrow
Fund, established pursuant to Section 4.04, an amount
from Bond proceeds, as set forth in a Written
Certificate of the Agency, which does not have Tax
~ Revenues equal to the debt service coverage
requirements set forth in this Resolution; and
(d) The Fiscal Aqent shall pay to the Treasurer the
remainder of such proceeds for deposit in the
Redevelopment Fund established by the Agency, pursuant
to Section 4.03.
Section 3.03. Issuance of Additional Series of Bonds. In
addition to the Bonds, the Agency may, by Supplemental
Resolution, establish one or more additional series of Bonds
payable from Tax Revenues on a parity with the Bonds to finance
the Project in such principal amount as shall be determined by
the Agency. The Agency may issue and deliver Additional Bonds
16
of the series so established subject to the following specific
conditions which are hereby made conditions precedent to the
issuance and delivery of any such additional series of Bonds
issued under this Section.
(a) The Agency shall be in compliance with all covenants
set forth in this Resolution.
(b) The Fiscal Agent shall have received a written
Certificate of the Agency showing:
(i) For the current and each future Fiscal Year
the debt service for each Fiscal Year with
respect to all series of Bonds reasonably
expected to be, Outstanding including the
Additional Bonds then being delivered.
(ii) For the then current Fiscal Year, that the Tax
Revenues to be received by the Agency based
upon the most recent taxable valuation of
property in the Project Area furnished by the
County Auditor-Controller, toqether with, at
the Agency's option, an allowance for
estimated annual additional Tax Revenues to be
received by the Agency, within the next Fiscal
- Year-following the date such computation is
made, due to increased in taxable valuation of
property in the Project Area resulting from
construction which has been completed, but not
yet enterAd on the tax roll, as shown by the
Report of an Independent Certified Public
Accountant, are at least 1.15 times maximum
annual debt service on all outstanding and
proposed Bonds of the Agency (except with
respect to refunding bonds issued to refund
Bonds or Additional Bonds). For the purpose
of this Section 3.03(b) only, Tax Revenues
shall not include any amounts received or
expected to be received as a business
inventory subvention.
(c) The Supplemental Resolution providing for the issuance
of such Additional Bonds under this Section shall
provide that:
(i) Money shall be deposited in the Reserve
Account from the proceeds of the sale of said
Additional Bonds to increase the amount on
deposit in the Reserve Account to an amount
equal to the Reserve Requirement on the Bonds
and such Additional Bonds; and
(ii) The proceeds of such Additional Bonds shall be I
applied solely for (1) the purpose of aiding ,
in financing the Project, including payment of '
all costs incidental to or connected with such
financing, and/or (2) the purpose of refunding
any Bonds, including payment of all costs i
incidental to or connected with such refunding.
(iii) Unless the Agency shall have determined that
other maturity date or dates and that other
interest payment dates will not adversely
affect the interests of the Owners of Bonds
then Outstanding, the Additional Bonds shall
mature on September 1 and interest thereon
shall be payable March 1 and September 1 of
each year.
17
(d) The Agency shall have received all required approvals
or rulings from any governmental authority having
jurisdiction over such series of Bonds or their terms.
Section 3.04. Additional Bonds; No Superior Lien. The
Agency covenants that it will not issue Additional Bonds or
incur any other obligations, however denominated, secured by a
pledge and lien on Tax Revenues (as defined in this Resolution)
superior to the lien securing the Bonds.
Section 3.05. Validitv of Bonds. The validity of the
authorization and issuance of the Bonds shall not be dependent
upon the completion of the Project or upon the performance by
any person of his obligation with respect to the Project.
ARTICLE IV
TAX REVENUES; FUNDS AND ACCOUNTS
Section 4.01. Pledae of Tax Revenues. The Bonds shall be
secured by a first pledge (which pledge shall be effected in
trie manner and to the extent hereinafter provided) of all oP
the Tax Revenues and a pledge of all of the moneys in the
Reserve Account. The Tax Revenues are hereby allocated in
their entirety to the payment of the principal-of and interest
on the Bonds and until the payment in full thereof, the Tax
Revenues shall be applied solely to the payment of such
principal and interest and to transfer to the Reserve Account
for that purpose. This pledge and allocation of Tax Revenues
is for the exclusive benefit of the Bonds and shall be
irrevocable until all of the Bonds and the interest thereon
have been paid and retired. The Agency will not issue any
obliqation or security superior to or on a parity with the
Bonds authorized pursuant to Section 2.01, howsoever
denominated, payable in whole or in part from the Tax Revenues
(other than Additional Bonds or refunding bonds issued solely
for the purpose of refunding all of the then outstanding Bonds
and Additional Bonds), until all of the Bonds have been paid
and retired.
Section 4.02. Special Fund. There is hereby created a
special fund to be known as
"Redevelopment Agency of the City of Lake Elsinore
Rancho Laguna Redevelopment Project
Area No. II
Special Fund"
(the ~~Special Fund"), which the Agency hereby covenants and
agrees to be maintained and which shall be held in trust by the
Treasurer. The Agency shall pay or cause to be paid to the
Treasurer all of the Tax Revenues and the Agency covenants that
it will so far as permitted by law, authorize and direct, and
does hereby authorize and direct, the payment of such Tax
Revenues by the respective taxing agencies, as defined in
Article 6 of Chapter 6 of the Law and Article XVI, Section 16
of the Constitution of the State of California, directly to the
Treasurer. All Tax Revenues at any time paid into the Special
Fund shall be held by the Treasurer in trust for the benefit of
the registered Owners from time to time of the Bonds, and shall
be disbursed, allocated and applied solely for the uses and
purposes set forth in this Article. So long as any of the
Bonds are Outstanding, the Agency shall not have any beneficial
right or interest in the Tax Revenues, except only as provided
in this Resolution, and such moneys shall be used and applied
by the Treasurer as set forth in this Article.
18
Section 4.03. Redevelopment Fund. There is hereby created
a fund known as the
"Redevelopment Aqency of the City of Lake Elsinore
Rancho Laguna Redevelopment Project
Area No. II
Redevelopment Fund"
(the "Redevelopment Fund"), which the Agency hereby covenants
and agrees to cause to be maintained and which shall be held in
trust by the Treasurer of the Agency.
The moneys set aside and placed in the Redevelopment Fund
shall remain therein until from time to time expended solely
for the purpose of financing a portion of the cost of the
Redevelopment Project and other costs related thereto, and also
including in such costs:
(a) The payment, in any year during which the Agency owns
property in the Project Area, to any city, county,
city and county, district or other public corporation
which would have levied a tax upon such property had
it not been exempt, an amount of money in lieu of
taxes as authorized by Section 33401 of the Law; and
(b) The cost of any lawful purpose in connection with the
Redevelopment Project, including, without limitation,
Section 33445 of the Law; and
(c) The necessary expenses in connection with the issuance
and sale of the Bonds and fees of the Fiscal Agent and
Paying Agents.
' If any sum remains in the Redevelopment Fund after the full
', accomplishment of the objects and purposes for which the Bonds
' were issued, such sum shall be transferred to the Bond Fund.
, Section 4.04. Escrow Fund. There is hereby created with
I, the Fiscal Agent a special trust fund to be known as
"Redevelopment Agency of the
City of Lake Elsinore
Rancho Laguna Redevelopment Project
Area No. II
Escrow Fund"
(the "Escrow Fund").
Section 4.05. Bond Fund; Accounts Therein. There is
hereby created a special trust fund to be known as
"Redevelopment Agency of the City of Lake Elsinore
Rancho Laguna Redevelopment Project
Area No. II
Bond Fund"
', (the "Bond Fund"). Within the Bond Fund, there are created
' special trust accounts. Tax Revenues in the Special Fund shall
' be paid to the Fiscal Agent on or before February 15, 1987, and
on or before February 15 and August 15 of each year thereafter
and deposited by the Fiscal Agent in the special trust
i'' accounts, in the following order of priority:
', (a) Bond Interest Account,
', (b) Serial Bond Account,
' (c) Term Bond Sinking Account, and
(d) Reserve Account
19
(the "Special Trust Accounts"). The Agency covenants and
agrees to cause the Bond Fund and special accounts therein to
be maintained by the Fiscal Agent.
Section 4.06. Use and Withdrawal of Revenues; Bond Fund.
All Tax Revenues in each of the Special Trust Accounts shall be
held in trust by the Fiscal Agent and shall be applied, used
and withdrawn only for the purposes hereinafter specified:
(a) Bond Interest Account. On or before February 20,
1987, and August 20, 1987, and on or before
February 20 and August 20 of each year thereafter, the
Fiscal Agent shall set aside from the Bond Fund into
the Bond Interest Account an amount equal to the
aggregate amount of the interest becoming due and
payable on the outstanding Bonds on the next
succeeding March 1 and September 1, respectively. No
deposit need be made into the Bond Interest Account to
the extent that the amount contained therein is
sufficient to pay the interest to become due on the
next succeeding interest payment date upon all of the
Bonds issued hereunder and then Outstanding.
All moneys in the Bond Interest Account shall be used
and withdrawn by the Fiscal Agent solely for the
purpose of paying the interest on the Bonds as it
shall become due and payable (including accrued
interest on any Bonds purchased or redeemed prior to
maturity pursuant to this Resolution).
(b) Serial Bond Account. On or before August 20, 1987,
and on or before August 20 of each year thereafter,
the Fiscal Agent shall set aside from the Bond Fund
into the Serial Bond Account an amount equal to the
aggregate yearly amount of principal becoming due and
payable on the Outstanding Serial Bonds on the next
succeeding September 1. No deposit need be made into
the Serial Bond Account so long as the amount
contained therein is sufficient to pay the principal
of all Serial Bonds issued hereunder and then
Outstanding and maturing by their terms on the next
succeeding September 1.
All moneys in the Serial Bond Account shall be used
and withdrawn by the Fiscal Agent solely for the
purpose of paying the principal of the Serial Bonds as
they shall become due and payable.
(c) Term Bond Sinkina Account. On or before August 20,
2002, and on or before August 20 of each year
thereafter, the Fiscal Agent shall set aside from the
Bond Fund and deposit into the Term Bond Sinking
Account an amount which, when added to the amount then
contained in the Term Bond Sinking Account, will be
equal to the aggregate amount of the Minimum Sinking
Account Payments required to be on deposit therein in
such year, as set forth in the following table:
Year Amount Year Amount
2002 $ 95,000 2009 $175,000
2003 105,000 2010 195,000
2004 115,000 2011 210,000
2005 125,000 2012 230,000
2006 135,000 2013 250,000
2007 150,000 2014 275,000
2008 160,000 2015 295,000
20
Bonds in the amount of $325,000 not redeemed in
accordance with the schedule of Minimum Sinking
Account Payments above shall be paid at maturity on
September l, 2016, at a price equal to 100~ of the
principal amount thereof plus accrued interest to the
date of maturity.
All moneys in the Term Bond Sinking Account on
August 20 of any year beginning August 20, 2002, shall
be used and withdrawn by the Fiscal Agent on the next
succeeding September 1, for the redemption prior to
maturity or payment at maturity of Bonds maturing on
September 1, 2016, and the Agency hereby covenants and
agrees with the Owners of the Bonds to call and redeem
Term Bonds from the Term Bond Sinking Account pursuant
to this subsection and pursuant to Section 2.03(b)
hereof, on September 1 of each year, beginning on
September 1, 2002.
In the event that amounts in excess of the Minimum
Sinking Account Payments required to be on deposit in
any year shall be deposited in the Term Bond Sinking
Account, and shall be applied to the redemption or
payment of Term Bonds in such year, then the amount of
the Minimum Sinking Account Payments required to be
made for the following years of the Bonds (including
the year of final maturity) shall be reduced pro rata
based upon the ratio of the amount of each Sinking
Account Payment to the amount of Bonds then
outstandinq.
In lieu of redemption of Term Bonds, amounts on
deposit in the Term Bond Sinking Account may also be
used and withdrawn by the Fiscal Agent, at any time,
upon the written request of the Agency, received by
the Fiscal Agent sixty (60) days prior to the relevant
date of redemption, for the purchase of Term Bonds at
public or private sale as and when and at such prices
(including brokerage and other charges, but excluding
accrued interest, which is payable from the Bond
Interest Account) as the Agency may in its discretion
determine, but not to exceed the principal amount of
such Term Bonds payable on the next ensuing redemption
date. All Term Bonds purchased shall be cancelled and
(except with respect to redemption or purchase of Term
Bonds with excess funds as described above) the amount
of the next succeeding Sinking Account Payment shall
thereupon be reduced by the principal amount of such
Term Bonds so purchased and cancelled, provided that
no such Term Bonds shall be so purchased after notice
of redemption has been given.
(d) Reserve Account. On or before Auqust 20 of each year,
beginning on August 20, 1987, the Treasurer shall
withdraw from the Special Fund and pay to the Fiscal
Agent for deposit in the Reserve Account an amount of
money that shall be required to maintain in the
Reserve Account the full amount of the Reserve
Requirement or such larger amount as shall be required
to be maintained in the Reserve Account by any
Supplemental Resolution. Any deficiency in the
Reserve Account shall be replenished from the first
available moneys in the Special Fund. No deposit need
be made in the Reserve Account so long as there shall
be on deposit therein a sum equal to at least the
amount required to be on deposit therein. All money
in the Reserve Account shall be used and withdrawn by
the Fiscal Agent solely for the purpose of
replenishing the Bond Interest Account, the Serial
Bond Account or the Term Bond Sinking Account, in that
order, in the event of any deficiency at any time in
21
any of such accounts, or for the purpose of paying the
interest on or principal of or redemption premiums, if
any, on the Bonds in the event that no other money of
the Agency is lawfully available therefor, or for the
retirement of all the Bonds then Outstanding. So long
as the Agency is not in default hereunder, any amount
in the Reserve Account in excess of the amount
required to be on deposit therein shall, on Auqust 21
of each year, be withdrawn from the Reserve Account
and deposited in the Special Fund upon written request
of the Agency to the Fiscal Agent; provided, however,
that interest or income received on moneys in the
Reserve Account, which are in excess of the Reserve
Requirement, may be transferred to the Agency at any
time upon written request of the Agency to the Fiscal
Agent and applied for any lawful purpose of the Agency.
At any time following delivery of the Bonds, the
Agency at its sole discretion may satisfy all or any
part of the Reserve Requirement by providing to the
Fiscal Agent an irrevocable standby or direct pay
letter of credit or surety bond, in form and substance
acceptable to the bond insurance company, if the Bonds
are insured, or to any applicable rating agency,
provided that:
(i) The letter of credit or surety bond shall be
for the full remaining term of the Bonds; I
(ii) The Fiscal Aqent shall receive an opinion from
Bond Counsel that such action shall not
prejudice the tax exempt status of the ,
interest paid or to be paid on the Bonds; !,
I
(iii) The Fiscal Agent shall receive written '
instructions from an officer of the Agency as ,
to the transfer of moneys in the Reserve I
Account; '
(iv) The Fiscal Agent shall be entitled to draw
upon the letter of credit or surety bond prior '
to expiration without either the letter of ',
credit or surety bond being replaced by cash !
or other substitute; and '
(v) The Fiscal Aqent shall have the right of prior
approval as to the form and substance of
letter of credit or surety bond.
(e) Surplus. Except as hereinafter provided, any moneys
remaining in the Special Fund on August 21 of any
year, commencing August 21, 1987, shall be deemed to
be "Surplus~~ and may be transferred to the Agency and
used for any lawful purpose of the Agency. Before any
such funds may be deemed to be Surplus, all of the
transfers required to be made pursuant to subsections
(a) through (d) above, includinq the transfer to the
Bond Interest Account required on February 20 in the
calendar year immediately following shall first have
been made. Any moneys deposited in the Special Fund
pursuant to Section 5.13 shall not be deemed to be
Surplus but shall be used as soon as practicable to
purchase Bonds in the manner provided in Section
4.06(c) hereof or to redeem Bonds in accordance with
Section 2.03(a) hereof.
Section 4.07. _U_se and Withdrawal of Bond Proceeds: Escrow
Fund. All or a portion of the proceeds initially deposited in
the Escrow Fund may be transferred, from time to time, to the
Agency for deposit in the Redevelopment Fund and to the Reserve
Account (so that the balance therein equals the Reserve
Requirement) upon certification by an Independent Certified
22
Public Accountant that the requirements for debt service
coverage as set forth in Section 3.03(b) have been satisfied.
Based upon a Written Certificate of the Agency delivered by
the Agency to the Fiscal Agent on or before February 1 and
August 1 of each year, on or before February 20, 1987 and
August 20, 1987, and on or before February 20 and Auqust 20 of
each year thereafter, until all proceeds in the Escrow Fund
have been transferred to the Redevelopment Fund and Reserve
Account or transferred to the Redemption Fund, the Fiscal Aqent
shall set aside from the Escrow Fund into the Bond Interest
Account an amount equal to the aggregate amount of interest
becoming due and payable on the next succeeding March 1 and
September 1, respectively, on that portion of outstanding Term
Bonds maturing on September 1, 2016, which could be subject to
special mandatory redemption as hereinafter provided.
Any moneys remaining in the Escrow Fund on August 1, 1989
shall be transferred to the Redemption Fund and applied to the
redemption of Term Bonds, pursuant to Section 2.03(c).
Section 4.08. Monevs in Funds and Acoounts; Limitation on
Use. So long as any of the Bonds herein authorized or any
interest thereon, remain unpaid, the moneys in the Funds and
Accounts created pursuant to this Article shall be used for no
purpose other than those required or permitted by this
Resolution or any resolution providing for the issuance of
Parity Bonds and the Law.
Section 4.09. Other Obliaations: Sur~
So long as no event of default shall have
continuing hereunder, the Agency may issu~
obligations payable from such Surplus Tax
by a lien thereon which is subordinate to
hereunder.
ARTICLE V
~lus Tax Revenues.
occurred and be
a or incur any other
Revenues and secured
the lien established
COVENANTS OF THE AGENCY
Section 5.01. Punctual Pavment. The Aqency will
punctually pay or cause to be paid, from the Tax Revenues, the
principal of and interest on all the Bonds together with the
premium thereon, if any, in strict conformity with the terms of
the Bonds and of this Resolution, and it will faithfully
observe and perform all of the conditions, covenants and
requirements of this Resolution and all Supplemental
Resolutions and of the Bonds.
Section 5.02. Extension of Bonds. The Agency will not,
directly or indirectly, extend or consent to the extension of
the time for the payment of any Bond or claim for interest on
any of the Bonds and will not, directly or indirectly, be a
party to or approve any such arrangement by purchasing or
funding the Bonds, or claims for interest or in any other
manner. In case the maturity of any such Bond or claim for
interest shall be extended or funded, whether or not with the
consent of the Agency, such Bond or claim for interest so
extended or funded shall not be entitled, in case of default
hereunder, to the benefits of this Resolution, except subject
to the prior payment in full of the principal of all of the
Bonds then Outstanding and of all claims for interest which
shall not have been so extended or funded.
Section 5.03. Aaainst Encumbrances. The Agency will not
encumber, pledge or place any charge or lien upon any of the
Tax Revenues superior to or on a parity with the pledge and
lien herein created for the benefit of the Bonds, except as
permitted by this Resolution.
23
Section 5.04. Manaaement and Operation of Proberties. The
Agency will manage and operate all properties owned by the
Agency and comprising any part of the Project in a sound and
businesslike manner, and will keep such properties insured at
all times in conformity with sound business practice.
Section 5.05. Pavment of Claims. The Agency will pay and
discharge, or cause to be paid and discharged, any and all
lawful claims for labor, materials or supplies which, if
unpaid, might become a lien or charge upon the properties owned
by the Agency or upon the Tax Revenues or any part thereof, or
upon any funds in the hands of the Fiscal Agent or the Paying
Agent, or which might impair the security of the Bonds.
Nothing herein contained shall require the Agency to make any
such payment so long as the Agency in good faith shall contest
the validity of said claims.
Section 5.06. Books and Accounts: Financial Statement.
The Agency will keep, or cause to be kept, proper books of
record and accounts, separate from all other records and
accounts of the Agency and the City, in which complete and
correct entries shall be made of all transactions relating to
the Project and to the Tax Revenues. Such books of record and
accounts shall at all times during business hours be subject to
the inspection of the Owners of not less than ten percent (l0%)
of the principal amount of the Bonds then Outstanding, or their
representatives authorized in writing.
The Agency will cause to be prepared and filed with the
Fiscal Agent annually, within one hundred and twenty (120) days
after the close of that Fiscal Year so long as any of the Bonds
are Outstanding, complete financial statements with respect to
that Fiscal Year showing the Tax Revenues, all disbursements
from the Tax Revenues and the financial condition of the
Project, including the balances in all funds and accounts
relating to the Project, as of the end of such Fiscal Year,
which statement shall be accompanied by a certificate or
opinion in writing of an Independent Certified Public
Accountant. The Agency will furnish a copy of such statements
to any Bondowner upon request.
Section 5.07. Protection of Securitv and Rights of
Bondowners. The Agency will preserve and protect the security
of the Bonds and the rights of the Bondowners, and will warrant
and defend their rights against all claims and demands of all
persons. From and after the sale and delivery of any of the
Bonds by the Agency, the Bonds shall be incontestable by the
Agency.
Section 5.08. Pavments of Taxes and Other Charges.
Subject to the provisions of Section 5.12 hereof, the Agency
will pay and discharge, or cause to be paid and discharged, all
taxes, service charges, assessments and other governmental
charges which may hereafter be lawfully imposed upon the Agency
or the properties then owned by one Agency in the Project Area,
or upon the revenues therefrom, when the same shall become
due. Nothing herein contained shall require the Agency to make
any such payment so long as the Agency in good faith shall
contest the validity of said taxes, assessments or charges.
The Agency will duly observe and conform with all valid
requirements of any governmental authority relative to the
Project or any part thereof.
Section 5.09. Completion of Project. The Agency will
commence, and will continue to completion, with all practicable
dispatch, the Project, and the Project will be accomplished and
completed in a sound and economical manner and in conformity
with the Redevelopment Plan and the Law.
24
Section 5.10. Taxation of Leased Propertv. Whenever any
property in the Project Area has been redeveloped and
thereafter is leased by the Agency to any person or persons
(other than the City or other public agency) or whenever the
Agency leases real property in the Project Area to any person
or persons for redevelopment, the property shall be assessed
I and taxed in the same manner as privately owned property (in
' accordance with Section 33673 of the Health and Safety Code of
' the State of California), and the lease or contract shall
' provide (a) that the lessee shall pay taxes upon the assessed
value of the entire property and not merely upon the assessed
, value of his or its leasehold interest, and (b) that if for any
' reason the taxes paid by the lessee on such property in any
, year during the term of the lease or contract shall be less
i than the taxes which would have been payable upon the assessed
, value of the entire property if the property were assessed and
' taxed in the same manner as privately owned property, the
', lessee shall pay such difference to the Treasurer within thirty
(30) days after the taxes for such year become payable to the
I taxing agencies and in any event prior to the delinquency date
I of such taxes established by law. All such payments to the
I Treasurer shall be treated as Tax Revenues and shall be
', deposited by the Treasurer in the Special Fund.
Section 5.11. In Lieu Taxes by Agencv. In the event that
the Agency acquires land or real property in the Project Area,
it shall become obligated and hereby agrees to pay to the
Treasurer for deposit in the Special Fund an amount equal to
the amount which would have been payable as ad valorem property
taxes on such land or real property in the Fiscal Year of
acquisition had it remained in private ownership and subject to
such taxes. Such payments shall be made in two equal
installments payable no later than December 10 and April 10 of
each Fiscal Year.
Section 5.12. Disposition of Probert
(a) The Agency will, to the extent of its legal ability to
do so, prevent the disposition of any land or real
property in the Project Area to anyone which will
result in such property becoming exempt from taxation
because of public ownership or use or otherwise
(except property planned for such ownership or use by
the Redevelopment Plan in effect on the date of this
Resolution) unless such disposition has been approved
by an Independent Financial Consultant as hereinafter
provided in this Section. If the Agency, in the
exercise of its powers, proposes to allow such
disposition, it shall appoint a reputable Independent
Financial Consultant and direct Consultant to report
on the effect of the proposed disposition. If the
report of the Independent Financial Consultant
concludes that the security of the Bonds or the rights
of the Bondowners will not be materially impaired by
the proposed disposition, and that taxes allocated to
the Agency will not be significantly diminished by the
proposed disposition, the Agency may thereafter allow
the disposition (pursuant to all applicable provisions
' of the Law). If the Report concludes that taxes
allocated to the Agency will be significantly
diminished or that such security will be materially
impaired by the proposed disposition, the Agency shall
'' either disapprove the proposed disposition, or, in its
', discretion and as a condition precedent to its
I~ approval of the proposed disposition, declare that the
requirements set forth in subsection (b) of this
Section must be imposed on any new owner or owners who
' acquire real property pursuant to such dispositions.
The Agency shall have the sole and exclusive authority
I to appoint the Consultant. The Consultant shall not
' be liable in connection with the performance of its
duties hereunder, except for its own negligence or
willful misconduct.
25
I
- - -._._ _J
(b) If the Agency is not required to approve and is not
otherwise able to prevent the proposed disposition
pursuant to subsection (a) of this Section, the Agency
may, to the extent authorized by law, nevertheless
approve or otherwise allow the proposed disposition,
provided that, as a condition precedent to such
approval, the Agency imposes the following
requirements on such new owner or owners:
(i) Such new owner or owners shall pay to the
Treasurer, so long as any of the Bonds are
Outstanding, an amount equal to the amount
that would have been received by the Treasurer
as taxes allocated to the Agency if the
property were'assessed in the Fiscal Year of
such disposition and taxed in the same manner
as privately owned non-exempt property; and
(ii) Such payment shall be made to the Treasurer
within thirty (30) days after taxes for each
year would become payable to the taxing
agencies for non-exempt property and in any
event prior to the delinquency date of such
taxes established by law.
All such payments in lieu of taxes to the Treasurer shall be
treated as Tax Revenues and shall be deposited by the Treasurer
in the Special Fund.
Section 5.13. Sinale Sum Pavments in Lieu of Taxes. As an
alterative to payment to the Treasurer pursuant to Section 5.11
or Section 5.12, the Agency or other new owner or owners of
property becoming exempt from taxation provided for in Section
5.11 or Section 5.12 may elect to make payment to the Treasurer
in a single sum equal to the amount estimated by the Independent
Financial Consultant to be receivable by the Agency from taxes
on said property from the date of said payment to the maturity
date of the Bonds, less a reasonable discount value. All such
single sum payments in lieu of taxes shall be treated as Tax
Revenues and shall be deposited by the Treasurer in the
Redemption Fund for optional redemption, pursuant to Section
2.03(a).
Section 5.14. Tax Revenues. The Agency shall comply with
all requirements of the Law to insure the allocation and
payment to it of the Tax Revenues, including without limitation
the timely filing of any necessary statements of indebtedness
with appropriate officials of the County, and shall forward
information copies of each such filing to the Fiscal Agent.
Section 5.15. Eminent Domain. The net proceeds received
by the Agency from any eminent domain proceeding shall be
deposited by the Agency in the Special Fund; provided that the
net proceeds received by the Agency from the taking of any
property in the Project Area the redevelopment of which was
financed by the Agency through the issuance of lease revenue
bonds or other lease revenue or installment sale obligations
shall be deposited, used and applied in the manner provided by
the resolution authorizing the issuance of such lease revenue
bonds or other lease revenue or installment sale obligations.
Section 5.16. Further Assurance.
make, execute and deliver any and all
instruments and assurances as may be
proper to carry out the intention or
performance of this Resolution, and f
confirming unto the Owners of the Bon
benefits provided in this Resolution.
The Aqency will adopt,
such further resolutions,
reasonably necessary or
to facilitate the
or the better assuring and
ds of the riqhts and
26
ARTICLE VI
THE FISCAL AGENT
Section 6.01. Appointment of Fiscal Aaent. Bank of
America National Trust and Savings Association at its Principal
Office, is hereby appointed Fiscal Agent for the Agency to act
as the agent and depositary of the Agency for the purpose of
receiving all moneys required to be paid to the Fiscal Agent
hereunder, to allocate, use and apply the same, to hold,
receive and disburse the Tax Revenues and other funds pledged
or held hereunder, and otherwise to hold all the offices and
perform all the functions and duties provided in this
Resolution to be held and performed by the Fiscal Agent. The
Fiscal Agent shall signify its acceptance of the duties and
obligations imposed upon it by this Resolution by executing and
delivering to the Agency a written acceptance thereof, and by
executing and delivering such acceptance, the Fiscal Agent
shall be deemed to have accepted such duties and obligations,
but only upon the terms and conditions set forth in this
Resolution.
The Agency may remove the Fiscal Agent initially appointed,
and any successor thereto, and may appoint a successor or
successors thereto, but any such successor shall be a bank or
trust company doing business and having an office in San
Francisco or Los Angeles, California, having a combined capital
(exclusive of borrowed capital) and surplus of at least Fifty
Million Dollars ($50,000,000), in good standing and subject to
supervision or examination by federal or state authority. If
such bank or trust company publishes a report of condition at
least annually, pursuant to law or to the requirements of any
supervising or examining authority above referred to, then for
the purposes of this Section the combined capital and surplus
of such bank or trust company shall be deemed to be its
combined capital and surplus as set forth in its most recent
report of condition so published.
The Fiscal Agent may at any time resign by giving written
notice to the Agency and by giving to the Bondowners notice by
publication of such resignation, which notice shall be
published at least once in a Financial Newspaper. Upon
receiving notice of such resignation, the Aqency shall promptly
appoint a successor Fiscal Aqent by an instrument in writinq.
Any resignation or removal of the Fiscal Agent and appointment
of a successor Fiscal Agent shall become effective upon
acceptance of appointment by the successor Fiscal Agent. If no
successor Fiscal Agent is appointed by the Agency within thirty
(30) days after publication of such notice, the resigning
Fiscal Agent may petition any court of competent jurisdiction
for the appointment of a successor.
, Section 6.02. Combensation of the Fiscal Agent. The
Agency shall from time to time, on demand; pay to the Fiscal
Agent reasonable compensation for its services and shall
reimburse the Fiscal Agent for all its advances and
', expenditures, including but not limited to advances to and fees
and expenses of independent appraisers, accountants,
consultants, counsel, agents and attorneys-at-law or other
experts employed by the Fiscal Agent in the exercise and
performance of its powers and duties hereunder.
Section 6.03. Liabilitv of Aaent. The recitals of facts,
covenants and agreements herein and in the Bonds contained
shall be taken as statements, covenants and agreements of the
, Agency, and the Fiscal Agent assumes no responsibility for the
' correctness of the same, or makes any representations as to the
validity or sufficiency of this Resolution or of the Bonds or
' shall incur any responsibility in respect thereof, other than
in connection with the duties or obligations herein or in the
27
Bonds assiqned to or imposed upon it. The Fiscal Agent shall
not be liable in connection with the performance of its duties
hereunder, except for its own gross negliqence or willful
misconduct.
Section 6.04. Notice to Agent. The Fiscal Agent, shall be
protected in acting upon any notice, resolution, request, '
consent, order, certificate, report, warrant, Bond or other
paper or document believed by it to be genuine and to have been
signed or presented by the proper party or proper parties. The
Fiscal Agent may consult with counsel, who may be counsel to I
the Agency, with regard to legal questions, and the opinion of '
such counsel shall be full and complete authorization and
protection in respect of any action taken or suffered by it ',
hereunder in good faith and in accordance therewith. '
whenever in the administration of its duties under this
Resolution, the Fiscal Agent shall deem it necessary or
desirable that a matter be proved or established prior to
taking or suffering any action hereunder, such matter (unless
other evidence in respect thereof be herein specifically
prescribed) may, in the absence of bad faith on the part of the
Fiscal Agent, be deemed to be conclusively proved and
established by a Written Certificate of the Agency, and such
certificate shall be full warrant to the Fiscal Aqent for any
action taken or suffered under the provisions of this
Resolution or any Supplemental Resolution upon the faith
thereof, but in its discretion the Fiscal Agent may, in lieu
thereof, accept other evidence of such matter or may require
such additional evidence as to it may seem reasonable.
Section 6.05. Deposit and Investment of Moneys in Funds.
All moneys held by the Fiscal Agent in any of the funds or
accounts established pursuant to this Resolution shall be
deposited in demand or time deposits (which may be represented
by certificates of deposit) in any bank or trust company
authorized to accept deposits of public funds (including the
banking department of the Fiscal Agent), and shall be secured
at all times by obligations which are eligible by law to secure
deposits of public moneys of a market value at least equal to
the amount required by law, except such moneys which are at the
time invested as hereinafter provided.
Moneys deposited in the Bond Interest Account pursuant to
Section 3.02(a) hereof shall be invested only in direct
obligations of the United States of America. Otherwise moneys
in the Bond Interest Account, the Serial Bond Account, the
Escrow Account and the Reserve Account may, and upon the
written request of the Agency received at least two (2) days
prior to such investment, shall be invested by the Fiscal Agent
in:
(a) Federal Securities;
(b) money market funds;
(c) certificates of deposit of banks including Fiscal
Agent; or
(d) deposits with the Local Agency Investment Fund
established pursuant to Government Code Section
16429.1, but to the extent utilized by the Fiscal
Agent, only to the extent such monies are held
solely in the name of and for the benefit of the
Fiscal Agent.
maturing as hereinafter provided. Moneys in the Reserve
Account may be so invested in such obligations which by their
terms mature not later than five (5) years from their date of
purchase or not later than the final maturity date of the
28
account and Serial Bond Account may be so invested in such
obligations which by their terms mature prior to the date on
which such moneys are required to be paid out here under.
Moneys in the Special Fund and the Redevelopment Fund may be
invested by the Treasurer in any manner authorized by law for
the investment of funds by the Agency. All interest received
on any moneys so invested shall be deposited in the
respective fund or account from which such investment was
made. All such interest in excess of the amounts required to
be on deposit pursuant to Section 4.06 hereof may be treated
as surplus and released to the Agency free and clear.
The Fiscal Agent shall sell at the best price
obtainable, or present for redemption, any investment
security whenever it shall be necessary to provide moneys to
meet any required payment, transfer, withdrawal or
disbursement from the fund or account to which such
investment security is credited and Fiscal Agent shall not be
liable or responsible for any loss investment security in
accordance herewith.
The Fiscal Agent and its directors, officers, employees
or agents, may in good faith buy, sell, own, hold and deal in
any of the Bonds and may join in any action which any owner
of a Bond may be entitled to take, with like effect as if the
Fiscal Agent was not the Fiscal Agent under this Resolution.
The indebtedness of the Agency, own, accept or negotiate any
drafts, bills of exchange, acceptance or obligations of the
Agency, and make disbursements for the Agency and enter into
any commercial or business arrangement therewith, without
limitation.
No investment request of the Treasurer shall impose any
duty upon Fiscal Agent which is inconsistent with its
fiduciary obligations.
29
ARTICLE VII
MODIFICATION OR AMENDMENT OF THE RESOLUTION
Section 7.01. Amendments Permitted. This Resolution and
the rights and obligations of the Agency and of the Owners of
the Bonds may be modified or amended at any time by a
Supplemental Resolution and pursuant to the affirmative vote at
a meeting of Bondowners, or with the written consent without a
meeting, of the Owners of sixty percent (60%) in aggregate
principal amount of the Bonds then outstanding, exclusive of
Bonds disqualified as provided in Section 7.04. No such
modification or amendment shall:
(a) Extend the maturity of any Bond or reduce the interest
rate thereon, or otherwise alter or impair the
obligation of the Agency to pay the principal thereof,
or interest thereon, or any premium payable on the
redemption thereof, at the time and place and at the
rate and in the currency provided therein, without the
written consent of the Owner of such Bond; or
(b) Permit the creation by the Agency of any mortgage,
pledge or lien upon the Tax Revenues superior to or on
a parity with the pledge and lien created for the
benefit of the Bonds (except as expressly permitted by
this Resolution), or reduce the percentage of Bonds
required for the affirmative vote or written consent
to an amendment or modification, without the written
consent of the Owners of all the Bonds; or
(c) Modify any of the rights or obligations of the Fiscal
Agent or of the Paying Agent without its written
consent thereto.
This Resolution and the rights and obligations of the
Agency and of the Owners of the Bonds may also be modified or
amended at any time by a Supplemental Resolution, without the
' consent of any Owners of the Bonds but only to the extent
permitted by law and only for any one or more of the following
purposes:
(a) To add to the covenants and agreements of the Agency
in this Resolution contained, other covenants and
agreements thereafter to be observed, or to surrender
any right or power herein reserved to or conferred
upon the Agency.
(b) With the written approval of the Fiscal Agent, to make
such provisions for the purpose of curing any
ambiguity, or of curing, correcting or supplementing
any defective provision contained in this Resolution,
or in regard to questions arising under this
Resolution, as the Agency may deem necessary or
desirable and not inconsistent with this Resolution,
and which shall not adversely affect the interests of
the Owners of the Bonds.
(c) To provide for the issuance of any Additional Bonds,
and to provide the terms and conditions under which
such Additional Bonds may be issued, subject to and in
accordance with the provisions of Section 3.05.
Section 7.02. Bondowners' Meetina.
(a) Callina Bondowners' Meetin.q. If the Agency shall
desire to obtain any such consent it may call a
meeting of Bondowners, by resolution, for the purpose
of considering the action, the consent to which is
desired.
30
__ J
(b) Notice of Meetina. Notice specifying the purpose,
place, date and hour of such meeting shall be mailed,
postage prepaid, to the respective registered Owners
thereof at their addresses appearing on the Bond
registry books, not less than sixty (60) days and not
more than ninety (90) days prior to the date fixed for
the meeting. Such notice shall set forth the nature
of the proposed action, consent to which is desired.
The place, date and hour of holding such meeting and
the date or dates of mailing such notice shall be
determined by the Agency, in its discretion.
The actual receipt by any Bondowner of notice of any ',
such meeting shall not be a condition precedent to the
holding of such meeting, and failure to receive such I
notice shall not affect the validity of the I,
proceedings. A certificate by the Secretary of the '
Agency, approved by resolution of the Agency that the
meetinq has been called and that notice thereof has '
been given as herein provided shall be conclusive as 'I
against all parties and it shall not be open to any I
Bondowner to show that he failed to receive notice of
such meeting. I
(c) Voting Qualifications. Any Bondowner may, prior to
any such meeting, deliver his or her Bond or Bonds to
any agency designated by the Agency for the purpose,
and shall thereupon be entitled to receive an
appropriate receipt for the Bond or Bonds so
deposited, calling for the redelivery of such Bond or
Bonds at any time after the meeting. The Treasurer of
the Agency shall prepare and deliver to the
chairperson of the meeting a list oP the names and
addresses of the registered Owners of Bonds, with a
statement of the names of Bondowners so depositing
their Bonds and the maturities and serial numbers of
the Bonds so held and deposited and no Bondowner shall
be entitled to vote at such meeting unless his or her
name appears on such list or unless he or she shall
present his or her Bond or Bonds at the meeting or a
certificate of deposit thereof, satisfactory to the
Agency, executed by a bank or trust company. No
Bondowners shall be permitted to vote with respect to
a larger aggregate principal amount of Bonds than is
set against his or her name on such list, unless he or
she shall produce the Bonds upon which he or she
desires to vote, or a certificate of deposit thereof
as above provided.
(d) Aqency-Owned Bonds. The Agency covenants that it will
present at the meeting a certificate, signed and
verified by one member of the Agency and by the
Treasurer of the Agency stating the maturities and
serial numbers of all Bonds owned by, or held for
account of, the Agency, directly or indirectly. No
person shall be permitted at the meeting to vote or
consent with respect to any Bond appearing upon such
certificate, or any Bond which it shall be established
at or prior to the meeting as owned by the Agency,
directly or indirectly, and no such Bond (in this
Section 7.02 referred to as "Agency-owned bonds'~)
shall be counted in determining whether a quorum is
present at the meeting.
(e) 4uorum and Procedure. A representation of at least !
sixty percent (60~) in aggregate principal amount of '
the Bonds then Outstanding (exclusive of Agency-owned
Bonds) shall be necessary to constitute a quorum at
any meeting of Bondowners, but less than a quorum may ',
adjourn the meeting from time to time, and the meeting ,
may be held as so adjourned without further notice, j
whether such adjournment shall have been had by a I
31
quorum or less than a quorum. The Agency shall, by an
instrument in writing, appoint a temporary chairperson
of the meeting, and the meeting shall be organized by
the election of a permanent chairperson and a
secretary. At any meeting each Bondowner shall be
entitled to one vote for every $5,000 principal amount
of Bonds with respect to which he or she shall be
entitled to vote as aforesaid, and such vote may be
given in person or by proxy duly appointed by an
instrument in writing presented at the meeting. The
Agency, by its duly authorized representative, may
attend any meeting of the Bondowners, but shall not be
required to do so.
' (f) Vote Required. At any such meeting held as aforesaid,
there shall be submitted for the consideration and
', action of the Bondowners a statement of proposed
' action, consent to which is desired, and if such
', action shall be consented to and approved by
Bondowners holding at least sixty percent (60~) in
aggregate amount of the Bonds then outstanding
', (exclusive of Agency-owned Bonds) the chairperson and
i secretary of the meeting shall so certify in writing
to the Agency, and such certificate shall constitute
complete evidence of consent of Bondowners under the
', provisions of this Resolution. A certificate signed
', and verified by the chairperson and secretary of any
such meeting shall be conclusive evidence and the only
competent evidence of matters stated in such
, certificate relating to proceedings taken at such
meeting.
(g) Written Consent of Bondowners. If the Agency shall
desire to obtain any such consent in writing, without
a meeting of Bondowners, the Agency may, by
resolution, propose the action, to which consent is
desired. A copy of such resolution, together with a
request to Bondowners for their consent to the action
proposed therein, shall be mailed to each registered
owner at the address appearing on the Bond registry
books.
The actual receipt by any Bondowner of such resolution and
request shall not affect the validity of the proceedings for
the obtaining of such consent. A certificate by said
Secretary, approved by resolution of the Agency, that said
resolution and request has been mailed as herein provided shall
be conclusive as against all parties, and it shall not be open
to any Bondowner to show that he failed to receive such
resolution and consent.
Each written consent shall be accompanied by proof of
ownership of the Bonds for which such consent is given. Proof
of ownership shall be made in such manner as shall be
prescribed by the resolution proposing the action. Any such
written consent shall be binding upon the Owner of the Bonds
giving such consent and on any subsequent Owner (whether or not
such subsequent Owner has notice thereof) unless such consent
is revoked in writing by the Owner giving such consent or by
the subsequent Owner. To be effective, any revocation of
consent must be filed before the adoption of the resolution
accepting consents as hereinafter provided.
After the Owners of at least sixty percent (60'c) in
aggregate principal amount of the Bonds then Outstanding
(exclusive of Agency-owned Bonds) shall have consented in
writing, the Agency shall adopt a resolution accepting such
consents and such resolution shall constitute complete evidence
of the consent of Bondowners under this resolution.
32
Section 7.03. Disaualified Bonds. Bonds owned or held for
the account of the Aqency or the City, exceptinq any pension or
retirement fund, shall not be deemed Outstanding for the
purpose of any vote consent or other action or any calculation
of Outstanding Bonds provided for in this Article , and shall
not be entitled to vote upon, consent to, or take any other
action provided for in this Article.
Section 7.04. Effect of Suoplemental Resolution. From and
after the time any Supplemental Resolution becomes effective
pursuant to this Article, this Resolution shall be deemed to be
modified and amended in accordance therewith, the respective '
rights, duties and obligations under this Resolution of the '
Agency and all Owners of Bonds Outstanding shall thereafter be I
determined, exercised and enforced hereunder subject in all ~
respects to such modifications and amendments, and all the ',
terms and conditions of any such Supplemental Resolution shall
be deemed to be part of the terms and conditions of this
Resolution for any and all purposes.
The Agency may adopt appropriate regulations to require
each Bondowner, before his or her consent provided for in this
Article shall be deemed effective, to reveal if the Bonds as to
which such consent is given are disqualified as provided in
Section 7.03.
Section 7.05. Endorsement or Reolacement of Bonds Issued
After Amendments. The Agency may determine that Bonds issued
and delivered after the effective date of any action taken as ,
provided in this Article shall bear a notation, by endorsement ~
or otherwise, in form approved by the Agency, as to such '
action. In that case, upon demand of the Owner of any Bond ~
outstanding at such effective date and presentation of the ~'I
applicable Bond for that purpose at the office of the Fiscal j
Agent or at such other office as the Agency may select and
designate for that purpose, a suitable notation shall be made
on such Bond. The Agency may determine that new Bonds, so ,
modified as in the opinion of the Agency is necessary to 'I
conform to such Bondowners action, shall be prepared, executed ~~
and delivered. In that case, upon demand of the Owner of any !
Bonds then Outstanding, such new Bonds shall be exchanged at
the Principal office of the Fiscal Agent, without cost to any
Bondowner, for Bonds then outstanding, upon surrender of such
BOhdS.
ARTICLE VIII
EVENTS OF DEFAULT AND REMEDIES OF BONDHOLDERS
Section 8.01. Events of Default and Acceleration of
Maturities. If one or more of the following events ("events of
default") shall happen, that is to say:
(a) If default shall be made in the due and punctual
payment of the principal or sinking account payment of
or redemption premium (if any) on any Bond when and as
the same shall become due and payable, whether at
maturity as therein expressed, upon prior redemption
or by declaration or otherwisey
(b) If default shall be made in the due and punctual
payment of any installment of interest on any Bond '
when and as such interest installment shall become due '
and payable; ,
33
(c) If default shall be made by the Agency in the
observance of any of the other covenants, agreements
or conditions on its part in this Resolution or in the
Bonds contained, and such default shall have continued
for a period of ninety (90) days after written notice
thereof has been given to the Agency, or
(d) If the Agency shall file a petition or answer seeking
reorganization or arrangement under the federal
bankruptcy laws or any other applicable law of the
United States of America, or if a court of competent
jurisdiction shall approve a petition, filed with or
without the consent of the Agency, seeking
reorganization under the federal bankruptcy laws or
any other applicable law of the United States of
America, or if, under the provisions of any other law
for the relief or aid of debtors, any court of
competent jurisdiction shall assume custody or control
of the Agency or of the whole or any substantial part
of its property;
then, and in each and every such case during the continuance of
such event of default, the Fiscal Agent, upon notice in writing
to the Agency, or the owners of not less than sixty percent
(60~) in aggregate principal amount of the Bonds at the time
Outstanding, upon notice in writing to the Fiscal Agent and to
the Agency, shall be entitled to declare the principal of all
of the Bonds then Outstanding, and the interest accrued
thereon, to be due and payable immediately, and upon any such
declaration the same shall become and shall be immediately due
and payable.
This provision, however, is subject to the condition that
if, at any time after the principal of the Bonds shall have
been so declared due and payable, and before any judgment or
decree for the payment of the moneys due shall have been
obtained or entered, the Agency shall deposit with the Fiscal
Agent a sum sufficient to pay all principal on the Bonds
matured prior to such declaration and all matured installments
of interest (if any) upon all the Bonds, with interest at the
rate of twelve percent (12~) per annum on such overdue
installments of principal, and the reasonable expenses of the
Fiscal Agent, and any and all other defaults known to the
Fiscal Agent (other than on the payment of principal of and
interest on the Bonds due and payable solely by reason of such
declaration) shall have been made good or cured to the
satisfaction of the Fiscal Agent or provision deemed by the
Fiscal Agent to be adequate shall have been made therefor,
then, and in every such cases the Owners of at least a majority
in aggregate principal amount of the Bonds then outstanding, by
written notice to the Agency and to the Fiscal Agent, may, on
behalf of the Owners of all of the Bonds, rescind and annul
such declaration and its consequences. However, no such
rescission and annulment shall extend to or shall affect any
subsequent default, or shall impair or exhaust any right or
power consequent thereon.
Section 8.02. Apblication of Funds Upon Acceleration. All
of the Tax Revenues and all sums in the funds and accounts
provided for in Sections 4.02 and 4.05, upon the date of the
declaration of acceleration as provided in Section 8.01 and all
Tax Revenues thereafter received by the Treasurer or the Fiscal
Agent, shall be applied by the Fiscal Aqent in the order
following upon presentation of the several Bonds and the
stamping thereon of the payment, if only partially paid, or
upon the surrender thereof, if fully paid:
First, to the payment of the fees, costs and expenses of
the Fiscal Agent and of the Bondowners in declaring such event
of default, including reasonable compensation to its or their
agents, attorneys and counsel;
34
Second, in case the principal of the Bonds shall not have
become due and payable, to the payment of the interest in
default in the order of the maturity of the installments of
such interest, with interest on the overdue installments at the
rate of twelve percent (12~) per annum (to the extent that such
interest on overdue installments shall have been collected),
such payments to be made ratably to the persons entitled
thereto without discrimination or preference; and
Third, in case the principal of the Bonds shall have become
and shall be then due and payable, to the payment of the whole
amount then due and unpaid upon the Bonds for principal and
interest, with interest on the overdue principal and
installments of interest at the rate of twelve percent (12%)
per annum (to the extent that such interest on overdue
installments of interest shall have been collected), and in
case such moneys shall be insufficient to pay in full the whole
amount so owing and unpaid upon the Bonds, then to the payment
of such principal and interest without preference or priority
of principal over interest, or interest over principal, or of
any installment of interest over any other installment of
interest, ratably to the aqgregate of such principal and
interest.
Section 8.03. Other Remedies of Bondowners. Any Bondowner
shall have the right. for the equal benefit and protection of
all Bondowners similarly situated:
(a) By mandamus, suit, action or proceeding, to compel the
Agency and its members, officers, agents or employees
to perform each and every term, provision and covenant
contained in this Resolution and in the Bonds, and to
require the carrying out of any or all such covenants
and agreements of the Agency and the fulfillment of
all duties imposed upon it by the Law;
(b) By suit, action or proceeding in equity, to enjoin any
acts or things which are unlawful, or the violation of
any of the Bondowners' rights; or
(c) Upon the happening of any event of default (as defined
in Section 8.01), by suit, action or proceeding in any
court of competent jurisdiction, to require the Agency
and its members and employees to account as if it and
they were the trustees of an express trust.
Section 8.04. Non-waiver. Nothing in this Article or in
any other provision of this Resolution, or in the Bonds, shall
affect or impair the obliqation of the Agency, which is
absolute and unconditional, to pay the principal of and
interest on the Bonds to the respective Owners of the Bonds at
the respective dates of maturity, as herein provided, or affect
or impair the right of action, which is also absolute and
unconditional, of the Owners to institute suit to enforce such
payment by virtue of the contract embodied in the Bonds.
A waiver of any default by any Bondowner shall not affect
any subsequent default or impair any rights or remedies on the
subsequent default. No delay or omission of any Owner of any
of the Bonds to exercise any right or power accruing upon any
default shall impair any such right or power or shall be
construed to be a waiver of any such default or an acquiescence
therein, and every power and remedy conferred upon the
Bondowners by the Law or by this Article may be enforced and
exercised from time to time and as often as shall be deemed
expedient by the Owners of the Bonds.
If a suit, action or proceeding to enforce any right or
exercise any remedy be abandoned or determined adversely to the
Bondowners, the Agency and the Sondowners shall be restored to
35
their former positions, rights and remedies as if such suit,
action or proceeding had not been brought or taken.
Section 8.05. Actions bv Fiscal Aaent as Attornev-in-Fact.
Any suit, action or proceeding which any Owner of Bonds shall
have the right to bring to enforce any right or remedy
hereunder may be brought by the Fiscal Agent for the equal
benefit and protection of all Owners of Bonds similarly
situated and the Fiscal Agent is hereby appointed (and the
successive respective owners of the Bonds issued hereunder, by
taking and holding the same, shall be conclusively deemed so to
have appointed it) the true and lawful attorney-in-fact of the
respective Owners of the Bonds for the purpose of bringing any
such suit, action or proceeding and to do and perform any and
all acts and things for and on behalf of the respective Owners
of the Bonds as a class or classes, as may be necessary or
advisable in the opinion of the Fiscal Agent as such
attorney-in-fact.
Section 8.06. Remedies Not Exclusive . No remedy herein
conferred upon or reserved to the Owners of Bonds is intended
to be exclusive of any other remedy. Every such remedy shall
be cumulative and shall be in addition to every other remedy
given hereunder or now or hereafter existing, at law or in
equity or by statute or otherwise, and may be exercised without
exhausting and without regard to any other remedy conferred by
the Law or any other law.
ARTICLE IX
COVENANTS REGARDING TAX-EXEMPT
STATUS OF INTEREST
Section 9.01. Intention of Covenants. It is the intention
of the Agency that the interest paid on the Bonds is and shall
remain exempt from federal income taxation and therefore, the
Agency agrees to the covenants contained in this Article. '
Section 9.02. Covenant Reaarding Arbitrac~e. The Agency !
agrees and covenants that none of the proceeds from the sale of ~
the Bonds (the ~~Proceeds") will be used in a manner that would I
cause the Bonds to become an "arbitrage bond" within the ~
meaning of Section 103 (c) of the Code and the regulations of
the United States Department of the Treasury issued thereunder. '
Section 9.03. Covenant Reaarding Use of Project. The
Agency agrees and covenants that it will not use or permit the
use of the Project or any portion thereof by any person not an
"exempt person" within the meaning of Section 103 (b) (3) of
the Internal Revenue Code of 1954, as amended, or by an "exempt
person" (including the District) in an "unrelated trade or
business" within the meaning of Section 513 (a) of said Code,
in such manner or to such extent as would result in the loss of
exemption from federal income tax of the interest on the Bonds
under Section 103 of said Code.
Section 9.04. Covenant Regardina Consumer Loan Bonds. The '
Agency covenants and agrees that no amount in excess of five '
percent (5~) of the face amount of the Bonds used or indirectly
used to make or furnish loans so as to cause the Bonds to be '
"consumer loan bonds", within the meaning of Section 103(0) of '
the Internal Revenue Code of 1954 and regulations promulgated '
thereunder.
Section 9.05. Covenant Reaarding Non-Essential Function
Purboses. The Agency agrees and covenants that it will not use
more than twenty-five percent (25~) of the net proceeds of the
Bonds for '~non-essential function" or "private activity°
purposes.
36 I
_ _ ---- ---- -- :_._.,.-- _ _ _ -- - - -
Section 9.06. Covenant Regardina Pavments bv Private
Parties. The Agency covenants and agrees that no amount in
excess of twenty-five percent (25~) of the interest or
principal payable on the Bonds will be paid directly or
indirectly by private parties for use of any of the facilities
financed with proceeds of the Bonds.
Section 9.07. Covenant Regardina Future Combliance. In
order to comply, to the extent possible with any tax reform,
revision or amendment enacted, the Agency covenants and agrees
to take any action, to the extent possible, including passage
of any required resolutions and amendments of this Resolution
which, in the opinion of Bond Counsel, is deemed necessary to
comply with any enacted reform, revision or amendment of the
Internal Revenue Code affecting the tax exempt status of the
interest on the Bonds.
ARTICLE X
MISCELLANEOUS
Section 10.01. Benefits of Resolution Limited to Parties.
Nothing in this Resolution, expressed or implied, is intended
to give to any person other than the Agency, the Fiscal Agent
and the Owners of the Bonds, any right, remedy, claim under or
by reason of this Resolution. Any covenants, stipulations,
promises or agreements in this Resolution contained by and on
behalf of the Agenoy shall be for the sole and exclusive
benefit of the Owners of the Bonds and the Fiscal Agent.
Section 10.02. Successor is Deemed Included in Al1
References to Predecessor. Whenever in this Resolution or any
Supplemental Resolution either the Agency or the Fiscal Agent
is named or referred to, such reference shall be deemed to
include the successors or assigns thereof, and all the
covenants and agreements in this Resolution contained by or on
behalf of the Agency or the Fiscal Agent shall bind and inure
to the benefit of the respective successors and assigns thereof
whether so expressed or not.
Section 10.03. Discharae of Resolution. If the Aqency
shall pay and discharge the entire indebtedness on all Bonds
Outstanding in any one or more of the following ways:
(a) By paying or causing to be paid the principal of and
interest on all Bonds outstanding, as and when the
same become due and payable;
(b) By depositing with the Fiscal Agent, in trust, at or
before maturity, money which, together with the
amounts then on deposit in the funds and accounts
provided for in Sections 4.02 and 4.05 is fully
sufficient to pay all Bonds Outstanding, including all
principal, interest and redemption premiums; or
(c) By depositing with the Fiscal Agent, in trust, Federal
Securities or general obligation bonds of the State of
California on such amount as the Fiscal Agent shall
determine will, together with the interest to accrue
thereon and moneys then on deposit in the funds and
accounts provided for in Section 4.02 and 4.05 be
fully sufficient to pay and discharge the indebtedness
on all Bonds (includinq all principal, interest and
redemption premiums) at or before their respective
maturity dates;
and if such Bonds are to be redeemed prior to the maturity
thereof notice of such redemption shall have been given as in
this Resolution provided or provision satisfactory to the
37
Fiscal Agent shall have been made for the giving of such
notice, then, at the election of the Agency, and notwith-
standing that any Bonds shall not have been surrendered for
payment, the pledge of the Tax Revenues and other funds
provided for in this Resolution and all other obligations of
the Agency under this Resolution with respect to all Bonds
outstanding shall cease and terminate, except only the
obligation of the Agency to pay or cause to be paid to the
Owners of the Bonds not so surrendered and paid all sums due
thereon, and thereafter Tax Revenues shall not be payable to
the Fiscal Agent. Notice of such election shall be filed with
the Fiscal Agent.
_ Any funds held by the Fiscal Agent, at the time of receipt
by the Fiscal Agent of such notice from the Agency, which are
not required for the purpose above mentioned, shall be paid
over to the Agency.
Anything in this Resolution to the contrary notwithstanding,
any moneys held by the Fiscal Agent in trust for the payment
and discharge of any of the Bonds which remain unclaimed for
six (6) years after the date when such Bonds have become due
and payable, either at their stated maturity dates or by call
for earlier redemption, if such moneys were held by the Fiscal
Agent at such date, or for six (6) years after the date of
deposit of such moneys if deposited with the Fiscal Agent after
the date when such Bonds become due and payable, shall, at the
written request of the Agency be repaid by the Fiscal Agent to
the Agency, as its absolute property and free from trust, and
the Fiscal Agent shall thereupon be released and discharged
with respect thereto and the Bondowners shall look only to the
Agency for the payment of such Bonds.
Section 10.04. Execution of Documents and Proof of
Ownership bv Bondowners. Any request, declaration or other
instrument which this Resolution may require or permit to be
executed by Bondowners may be in one or more instruments of
similar tenor, and shall be executed by Bondowners in person or
by their attorneys appointed in writing.
Except as otherwise herein expressly provided, the fact and
date of the execution by any Bondowner or his attorney of such
request, declaration or other instrument, or of such writing
appointing such attorney, may be proved by the certificate of
any notary public or other officer authorized to take
acknowledgments of deeds to be recorded in the state in which
he purports to act, that the person signing such request,
declaration or other instrument or writing acknowledged to him
the execution thereof, or by an affidavit of a witness of such
execution, duly sworn to before such notary public or other
officer.
The ownership of Bonds and the amount, maturity, number and
date of owning the same shall be proved by the registry books.
Any request, declaration or other instrument or writing of
the Owner of any Bond shall bind all future Owners of such Bond
in respect of anything done or suffered to be done by the
Agency or the Fiscal Agent in good faith and in accordance
therewith.
Section 10.05. Waiver of Personal Liabilitv. No member,
_ officer, agent or employee of the Agency shall be individually
or personally liable for the payment of the principal of or
interest on the Bonds; but nothing herein contained shall
relieve any such member, officer, agent or employee from the
performance of any official duty provided by law.
38
Section 10.06. Destruction of Cancelled Bonds. Whenever
in this Resolution provision is made for the surrender to the
Agency of any Bonds which have been paid or cancelled pursuant
to the provisions of this Resolution, a certificate of
destruction duly executed by the Fiscal Agent shall be deemed
to be the equivalent of the surrender of such cancelled Bonds
and the Agency shall be entitled to rely upon any statement of
fact contained in any certificate with respect to the
destruction of any such Bonds therein referred to.
Section 10.07. Notices and Demands on Agency. Any notice
or demand which by any provision of this Resolution is required
or permitted to be given or served by the Fiscal Agent to or on
the Agency may be given or served by being deposited postage
prepaid in a post office letter box addressed (until another
address is filed by the Agency with the Fiscal Agent) as
follows:
Secretary
Redevelopment Agency of the City of Lake Elsinore
130 S. Main Street
Lake Elsinore, California 92260
Section 10.08. Partial Invaliditv. If any Section,
paraqraph, sentence, clause or phrase of this Resolution shall
for any reason be held illegal, invalid or unenforceable, such
holding shall not affect the validity of the remaining portions
of this Resolution. The Agency hereby declares that it would
have adopted this Resolution and each and every other Section,
paragraph, sentence, clause or phrase hereof and authorized the
issue of the Bonds pursuant thereto irrespective of the fact
that any one or more Sections, paragraphs, sentences, clauses,
or phrases of this Resolution may be held illegal, invalid or
unenforceable. If, by reason of the judgment of any court, the
Fiscal Agent is rendered unable to perform its duties
hereunder, all such duties and all of the riqhts and powers of
the Fiscal Agent hereunder shall be assumed by and vest in the
Treasurer of the Agency in trust for the benefit of the
Bondowners. The Agency covenants for the direct benefit of the
Bondowners that its Treasurer in such case shall be vested with
all of the rights and powers of the Fiscal Agent hereunder, and
shall assume all of the responsibilities and perform all of the
duties of the Fiscal Agent hereunder, in trust for the benefit
of the Bonds.
Section 10.09. Effective Date of Resolution. This
Resolution shall take effect from and after the date of its
passage and adoption.
PASSED, APPROVED AND ADOPTED this 7th day of August, 1986,
by the following vote:
AYES: Matson, Strigotte, Winkler
NOES: None
ABSENT: Dominguez, Vermillion
-~~- ~i~~: .
Chairperson
TES~':
~ ~-~
S cretary
(SEAL)
39
STATE OF CALIFORNIA )
) ss
COUNTY OF RIVERSIDE )
I, Jo Ann Oliver, Clerk of the Board of the Redevelopment Agency
of the City of Lake Elsinore, DO HEREBY CERTIFY that the foregoing resolution
was duly adopted by the Board of Directors of said Aaency at a regular
meeting of said Board held on the 7th day of Auqust, 1986 ~
and that it was so adopted by the following vote:
AYES: 60ARDMEMBERS: MATSON, STRIGOTTE, WINKLER
NOES: BOARDMEMBERS: NONE
ABSENT: BOARDMEMBERS: DOMINGUEZ, VERP~ILLION
ABSTENTIONS: BOARDPIEMBERS: NONE
ANN OLIVER, LERK OF THE BOARD
EVELOPMENT AGENCY OF THE
ITY OF LAKE ELSINORE
(SEAL)
STATE OF CALIFORNIA )
) ss.
COUNTY OF RIVERSIDE )
I, Ron Molendyk, 5ecretary of the Redevelopment Agency of the
City of Lake Elsinore, DO HEREBY CERTIFY that the above and foregoing
is a true and correct copy of Resolution No. CRA 86-4 , of said
Agency and that the same has not been amended or repeale~c.-
DATED
August 26, 1986
~~~". ~'~-~'l, ~~'
RON MOLENDY , SECRETARY
REDEVELOPMENT AGENCY OF THE
CITY OF LAKE ELSINORE
(SEAL)
~_
RESOLUTION NO. CRA 86-5
RESOLUTION OF THE REDEVELOPMENT AGENCY OF TAE
CITY OF LAKE ELSINORE, RIVERSIDE COUNTY,
CALIFORNIA, APPROVING OFFICIAL NOTICE OF SALE
OF BONDS AND OFFICIAL STATEMENT INCIDENT TO
ISSUANCE OF TAX ALLOCATION BONDS IN THE PRINCI-
PAL AMOUNT OF $3,600,000 FOR RANCHO LAGUNA
, REDEVELOPMENT PROJECT AREA NO. II AND AUTHOR-
' IZING AND DIRECTING CERTAIN ACTIONS WITH
RESPECT THERETO
WHEREAS, pursuant to the Resolution of Issuance, adopted on
! August 6, 1986, this Agency proposed to issue and sell bonds in
I~ the aggregate principal amount and designated as follows:
$3,600,000
, REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE
' RANCHO LAGUNA REDEVELOPMENT
PROJECT AREA NO. II
TAX ALLOCATION BONDS, SERIES 1986
', (the "Bonds"); and
' WHEREAS, Bond Counsel and Financial Consultant for the Agency
have prepared and presented to this Agency an Official Notice of
', Sale and Official Statement containing information material to
' the offering and sale of the Bonds; and
WHEREAS, this Agency, with the aid of its staff, has reviewed
', the Official Notice of Sale and Official Statement and has made
' such corrections and additions as it deems proper:
NOW, THEREFORE, the Redevelopment Agency of the City of Lake
Elsinore does hereby RESOLVE, DETERMINE AND ORDER as follows:
Section 1. Approval. The Official Notice of Sale and
' Official Statement are approved for distribution in the offering
and sale of the Bonds.
Section 2. Execution. The Executive Director is authorized
and directed to execute the Official Statement, to execute the
Official Notice of Sale on behalf of the Agency and to call for
bids for the sale of the Bonds as provided in the Resolution of
Issuance.
' Section 3. Modifications. The Executive Director is also
authorized to approue further corrections in and additions to the
Official Statement, by supplement thereto or amendment thereof,
or otherwise as appropriate, provided that any such corrections
or additions shall be necessary to cause the information
contained therein to conform with facts material to the Bonds or
to the proceedings of this Agency or that such corrections or
additions are in form rather than substance.
Section 4. Distribution. Financial Consultant, on behalf of
the Agency and its Executive Director, is authorized and directed
to cause the Official Notice of Sale and Official Statement to be
mailed at least five (5) days before the date for receipt of Bond
bids, to such municipal bond broker-dealers, to such banking
institutions and to such other persons as may be interested in
purchasing the Bonds offered for sale.
Section 5. Approvina Opinion. The Agency will furnish the
unqualified legal opinion of the law firm of Nazarek, Harper,
Hopkins & McFarlin, Irvine, California, approving the legality of
the proceedings and the issuance of the Bonds.
Section 6. Effective Date. This resolution shall take
effect upon adoption.
INTRODUCED AND APPROVED UPON FIRST READING this 7th day of
August, 1986.
AYES: Matson, Strigotte, Winkler
NOES: None
ABSENT: Dominguez, Vermillion
ABSTENTIONS: None
__~~~/~~/I ~~
Ch ia rperson
(SEAL)
2.
STATE OF CALIFORNIA )
) ss.
COUNTY OF RIVERSIDE )
I, Jo Ann Oliver, Clerk of the Board of the Redevelopment Agency
of the City of Lake Elsinore, DO HEREBY CERTIFY that the foregoing resolution
was duly adopted by the Board of Directors of said Aoency at a regular
meeting of said Board held on the 7th day of Auoust, 1986 ~
and that it was so adopted by the following vote:
AYES: 60ARDMEMBERS: MATSON, WINKLER, STRIGOTTE
NOES: BOARDMEMBERS: NONE
ABSENT: BOARDMEMBERS: DOMINGUEZ, VERMILLION
ABSTENTIOP~S: BOARDP1EMBERS: NONE
~
J ANN OLIVER, CLERK OF THE BOARD
EVELOPMENT AGENCY OF THE
TY OF LAKE ELSINORE
(SEAL)
STATE OF CALIFORNIA )
) ss.
COUNTY OF RIVERSIDE )
I, Ron Molendyk, Secretary of the Redevelopment Agency of the
City of Lake Elsinore, DO HEREBY CERTIFY that the above and foregoing
is a true and correct copy of Resolution No. CRA 86-5 , of said
Agency and that the same has not been amended or rep- ealecl.-
DATED: August 26, 1986
KUN MULtNUYK, Jt~KtIHKY
REDEUELOPMENT AGENCY Of THE
CITY OF LAKE ELSINORE
_ (SEAL)
~ .__
I
RESOLUTION N0. CRA 86-6
RESOLUTION OF TI3E REDEVELOPMENT AGENCY OF
THE CITY OF LAKE ELSINORE, RIVERSIDE COUNTY,
CALIFORNIA, DESIGNATING A FISCAL AGENT INCI-
DENT TO ISSUANCE OF TAX ALLOCATION BONDS IN
THE PRINCIPAL AMOUNT OF $3,600,000 FOR RANCHO
LAGUNA REDEVELOPMENT PROJECT AREA NO. II
WHEREAS, the Redevelopment Agency of the City of Lake
Elsinore (the "Agency") is a redevelopment agency (a public body,
', corporate and politic) duly created, established and authorized '
to transact business and exercise its powers, all under and
pursuant to the Community Redevelopment Law, being Part 1 of
Division 24 (commencing with Section 33000) of the Health and
', Safety Code of the State of California and the powers of the
Agency include the power to issue bonds and/or notes for any of
its corporate purposes; and
' WHEREAS, the Redevelopment Plan for a redevelopment project
known and designated as "Rancho Laguna Redevelopment Plan for
', Lake Elsinore Redevelopment Project Area No. 22" has been adopted ',
and approved by Ordinance No. 671 of the City of Lake Elsinore,
, enacted on July 18, 1983, and all requirements of law precedent '
- to the adoption and approval of the Redevelopment Plan have been
duly complied with; and
WHEREAS, the Agency has heretofore adopted a resolution
entitled ~~Resolution of the Redevelopment Agency of the City of
Lake Elsinore, Riverside County, California, Authorizing the
Issuance of $3,600,000 Principal Amount of Tax Allocation Bonds,
Series 1986, Rancho Laguna Redevelopment Project Area No. II"
(the "Resolution of Issuance"); and
WHEREAS, pursuant to the Resolution of Issuance, it is
necessary for the Agency to appoint a Fiscal Agent to administer
the Bonds:
NOW, THEREFORE, the Redevelopment Agency of the City of Lake
', E1'sinore does hereby RESOLVE, DETERMINE AND ORDER as follows:
, , Seotion l. Apbointment of Fiscal Agent. The Agency hereby
' of
points a Fiscal Agent to act as agent, trustee and depositary
the Agency for the purpose of receiving Tax Revenues and other
funds in trust as provided in the Resolution of Issuance, to I
hold, allocate, use and apply such Tax Revenues and other funds 'I
as provided in the Resolution of Issuance and to perform such ,
other duties and powers of the Fiscal Agent as are prescribed in
the Resolution of Issuance, to wit: '
i
, BANK OF AMERICA ~
', NATIONAL TRUST AND SAVINGS ASSOCIATION I
, Section 2. Contract for Services. The Agency hereby
approves and authorizes execution of the agreement for services
~ and compensation therefor submitted by the Fiscal Agent, on file
in the office of the Agency.
', Section 3. Qualifications of Fiscal Agent. The Agency
hereby finds and determines that the Fiscal Agent meets the
II~ qualifications set forth in the Resolution of Issuance.
' Section 4. Effective Date. This Resolution shall take
', effect upon adoption.
', INTRODUCED AND APPROVED UPON FIRST READING this 7th day of
August, 1986.
, AYES: Matson, Strigotte, Winkler
' " NOES: None
~ ABSENT: Dominguez, Vermillion
ABSTENTIONS: None
~U~Pi'/lic./~ ~
Chairperson
EST:'
~~
S
(SEAL)
2.
STATE OF CALIFORNIA )
) ss.
COUNTY OF RIVERSIDE )
I, Jo Ann Oliver, Clerk of the Board of the Redevelopment Agency
of the City of Lake Elsinore, DO HEREBY CERTIFY that the foregoing resolution
was duly adopted by the Board of Directors of said Aaency at a regular
meeting of said Board held on the ~th day of Auaust. 1986 ~
and that it was so adopted by the following vote:
AYES: 60ARDMEMBERS: MATSON, STRIGOTTE, WINKLER
NOES: BOARDMEMBERS: NONE
ABSENT: BOARDMEMBERS: DOMINGUEZ, VERMILLION
ABSTENTIOP~S: BOARDf1EMBERS: NONE
~ ~~~~
J NN LIVER, CLERK OF THE BOARD
EVELOPMENT AGENCY OF THE
C TY OF LAKE ELSINORE
(SEAL)
STATE OF CALIFORNIA )
) ss.
COUNTY OF RIVERSIDE )
I, Ron Molendyk, Secretary of the Redevelopment Agency of the
City of Lake Elsinore, DO HEREBY CERTIFY that the above and foregoing
is a true and correct copy of Resolution No. CRA 86-6 , of said
Agency and that the same has not been amended or rep`ea7e-7c-
DATED: August 26, 1986
~c~ ~~~
RON MOLENDYK, SECRETARY
REDEVELOPMENT AGENCY OF THE
CITY Of LAKE ELSINORE
(SEaL)
RESOLUTION NO. CRA 86-7
RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE
CITY OF LAKE ELSINORE, RIVERSIDE COUNTY,
CALIFORNIA, APPROVING AND AUTHORIZING PAYMENT
OF EXPENSES INCIDENT TO ISSUANCE, SALE AND
DELIVERY OF TAX ALLOCATION BONDS IN THE PRIN-
CIPAL AMOUNT OF $3,600,000 AND AUTHORIZING AND
DIRECTING PAYMENT OF SUCH EXPENSES FROM
PROCEEDS OF BONDS ON THE CLOSING DATE
WHEREAS, the Redevelopment Agency of the City of Lake
Elsinore (the "Agency") is a redevelopment agency (a public body,
corporate and politic) duly created, established and authorized
to transact business and exercise its powers, all under and
pursuant to the Community Redevelopment Law, being Part 1 of
Division 24 (commencing with 5ection 33000) of the Health and
Safety Code of the State of California and the powers of the
Agency include the power to issue bonds and/or notes for any of
its corporate purposes; and
WHEREAS, the Redevelopment Plan for a redevelopment project
known and designated as ~~Rancho Laguna Redevelopment Plan for
Lake Elsinore Redevelopment Project Area No. II" has been adopted
and approved by Ordinance No. 671 of the City of Lake Elsinore,
enacted on July 18, 1983, and all requirements of law precedent
to the adoption and approval of the Redevelopment Plan have been
duly complied with; and
, WHEREAS, the Agency has heretofore adopted a resolution
I entitled '~Resolution of the Redevelopment Agency of the City of
', Lake Elsinore, Riverside County, California, Authorizing the
Issuance of $3,600,000 Principal Amount of Tax Allocation Bonds,
Series 1986, Rancho Laguna Redevelopment Project Area No. II"
(the "Resolution of Issuance"), to finance a portion of the costs
of Redevelopment Projects for Redevelopment Project Area No. I2;
and
', WHEREAS, the Agency has heretofore accepted an offer to
purchase the Bonds; and
WHEREAS, the Agency desires to authorize and direct the
payment of certain expenses incurred incident to the issuance,
sale and delivery of the Bonds:
, NOW, THEREFORE, the Redevelopment Agency of the City
', of Lake Elsinore does hereby RESOLVE, DETERMINE AND ORDER
', as follows:
I
I Section l. Approval of Expenses. The Agency approves
~ payment of the expenses incurred incident to the issuance,
~ sale and delivery of the Bonds as set forth on Exhibit "A"
I attached hereto and made a part hereoP.
~, Section 2. Pavment of Fiscal Agent. The Agency
' hereby authorizes and directs the appropriate officers of
I~ the Agency to pay the expenses as set forth on Exhibit "A"
I~~ from the proceeds of the Bonds on the Closing Date, upon
I~ receipt of appropriate invoices therefor, pursuant to
', Section 4.03 of the Resolution of Issuance.
I~ Section 3. Effective Date. This Resolution shall
take effect upon adoption.
INTRODUCED AND APPROVED UPON FIRST READING this 26th
day of August, 1986.
I AYES: BOARDMEMBERS:
NOES: BOARDMEMBERS:
ABSENT: BOARDMEMBERS:
ABSTENTIONS: BOARDMEMBERS:
~:~--~ ~-
Chairperson
ATTEST:
~
_ ~..
(SEAL)
FEES AND EXPENSES
ISSUANCE AND SALE OF BONDS
PAYEE
Fieldman, Rolapp & Associates
2061 Business Center Drive
Suite 203
Irvine, California 92715
Nazarek, Harper, Hopkins
& McFarlin
2302 Martin Street, Suite 225
Irvine, California 92715
Bank of America National Bank
& Trust Association
Los Angeles, California
(Newspaper)
(Newspaper)
Merrill of Los Angeles
PURPOSE
Fees for financial consulting
services plus reimbursement
for expenses.
Fees for bond counsel services
plus reimbursement for
expenses.
Fees for fiscal agent
services
Cost of Publication
Cost of Publication
Costs of printing notice
of sale, preliminary official
statement and official state-
ment
EXIiIB2T "A"
STATE Of CALIFORNIA
COUNTY OF RIVERSIDE
ss.
I, Jo Ann Oliver, Clerk of the Board of the Redevelopment Agency
of the City of Lake Elsinore, DO HEREBY CERTIFY that the foregoing resolution
was duly adopted by the Board of Directors of said Aoency at a regular
meeting of said Board held on the ~gth day of ~~,Gt, 1qg6 ~
and that it was so adopted by the following vote:
AYES: 60ARDMEMBERS:
NOES: BOARDMEMBERS:
ABSENT: BOARDMEMBERS:
ABSTENTIOf~S: BOARDP1EMBERS:
~ .-
J ANN OLIVER, CLE K OF THE B ARD
DEVELOPMENT AGENCY OF THE
ITY OF LAKE ELSINORE
(SEAL)
STATE OF CALIFORNIA )
) ss.
COUNTY OF RIVERSIDE )
I, Ron Molendyk, Secretary of the Redevelopment Agency of the
City of Lake Elsinore, DO HEREBY CERTIFY that the above and foregoing
is a true and correct copy of Resolution No. CRA 86-7 , of said
Agency and that the same has not been amended or rep~`e e~c -
DATED: August 26, 1986
~ ~
RON MOLENDYK SECRETARY
REDEVELOPMENT AGENCY OF THE
CITY Of LAKE ELSINORE
(SEaL)
RESOLUTION N0. CRA 86-8
- WHEREAS, the Redevelopment Agency of the City of Lake
Elsinore (the "Agency") is a redevelopment agency (a public body,
corporate and politic) duly created, established and authorized
to transact business and exercise its powers, all under and
pursuant to the Community Redevelopment Law, being Part 1 of
Division 24 (commencing with Section 33000) of the Health and
Safety Code of the State of California and the powers of the
Agency include the power to issue bonds and/or notes for any of
its corporate purposes; and
WHEREAS, the Redevelopment Plan for a redevelopment project
known and designated as '~Rancho Laguna Redevelopment Plan for
Lake Elsinore Redevelopment Project Area No. II" has been adopted
and approved by Ordinance No. 671 of the City of Lake Elsinore,
' enacted on July 18, 1983, and all requirements oP law precedent
to the adoption and approval of the Redevelopment Plan have been
duly complied with; and
WHEREAS, the Agency has heretofore adopted a resolution
RESOLUTION OF THE REDEVELOPMENT AGENCY OF
THE CITY OF LAKE ELSINORE, RIVERSIDE COUNTY,
CALIFORNIA, ACCEPTING OFFER TO PURCHASE TAX
ALLOCATION BONDS IN TAE PRINCIPAL AMOUNT OF
$3,600,000, SERIES 1986, RANCHO LAGUNA
REDEVELOPMENT PROJECT AREA NO. II
entitled '~Resolution of the Redevelopment Agency of the City of
Lake Elsinore, Riverside County, California, Authorizing the
Issuance of $3,600,000 Principal Amount of Tax Allocation Bonds,
Series 1986, Rancho Laguna Redevelopment Project Area No. II"
(the "Resolution of Issuance"), to finance a portion of the costs
of Redevelopment Projects for Redevelopment Project Area No. II;
and
WHEREAS,
received and
WHEREAS,
for the purc]
examined and
the minutes;
the Agency has public
reviewed bids for the
at the time and place
iase of the Bonds, all
read and a tabulation
and
Ly advertised for and has
purchase of the Bonds; and
fixed for the opening of bids
bids were publicly opened,
thereof has been entered in
I
I`_
r
, WIiEREAS, the bid of the bidder hereinafter named is the best
bid made by a responsible bidder for the Bonds:
NOW, THEREFORE, the Redevelopment Agency of the City of Lake
Elsinore does hereby RESOLVE, DETERMINE AND ORDER as follows:
Section l. Lowest Bid. The bid for the purchase of the
Bonds which will result in the lowest net interest cost to the
Agency has been submitted by:
(the "Lowest Responsible Bidder").
j Section 2. Award of Bid. The Agency hereby approves and
awards the bid submitted by the Lowest Responsible Bidder for the
purchase of the Bonds, in accordance with the terms and
conditions set forth in the bid.
j Section 3. Reiection of Other Bids. The Agency hereby
rejects all other bids except the bid accepted in Section 2
', hereof and directs the Secretary to return the checks
', accompanying the rejected bids to the respective bidders.
Section 4. Interest Rates. The interest rates on the Bonds
are hereby fixed at the rates stated in the bid of the Lowest
Responsible Bidder.
Section 5. Deliverv of Bonds. The officers of the Agency
are hereby authorized and directed to deliver the Bonds to the
I Lowest responsible Bidder upon payment therefor and accrued
I interest, if any, to the date of delivery.
Section 6. Authorization for Closina. The officers of the
Agency are hereby authorized and directed to execute and deliver
any and all document in connection with the issuance, sale and
delivery of the Bonds, with such changes, additions,
modifications or deletions as may be requested by Bond Counsel.
Section 7. Effective Date. This resolution shall take
effect upon adoption.
2.
INTRODUCED A
August, 1986.
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ND APPROVED U
BOARDMEMBERS:
BOARDMEMBERS:
BOARDMEMBERS:
BOARDMEMBERS:
PON FIRST READING this 26Eh~, day of
DOMINGUEZ, MATSON, WINKLER, STRIGOTTE
VERMILLION
NONE
NONE
~:~~ ~i~~,ti..
Chairperson
ATT .
~ ~
Sec etary
(SEAL)
Approved As To Fo
3.
STATE Of CALIFORNIA )
) ss.
COUNTY OF RIVERSIDE )
I, Jo Ann Oliver, Clerk of the Board of the Redevelopment Agency
of the City of Lake Elsinore, DO HEREBY CERTIFY that the foregoing resolution
was duly adopted by the Board of Directors of said Aaency at a regular
meeting of said Board held on the 26th day of Auaust, 1986 ~
and that it was so adopted by the following vote:
AYES: 60ARDMEMBERS:
NOES: BOARDMEMBERS:
ABSENT: BOARDMEMBERS:
ABSTENTIOf~S: BOARDP1EMBERS:
~
J NN OLIVER, CLERK Of THE B ARD
EVELOPMENT AGENCY OF THE
C TY OF LAKE ELSINORE
(SEAL)
STATE OF CALIFORNIA )
) ss.
COUNTY OF RIVERSIDE )
I, Ron Molendyk, Secretary of the Redevelopment Agency of the
City of Lake Elsinore, DO HEREBY CERTIFY that the above and foregoing
is a true and correct copy of Resolution No. CRA 86-8 , of said
Agency and that the same has not been amended or rep`e e~c -
DATED: August 26, 1986
ls ~_
RON MOLENDY , SECRETARY
REDEVELOPMENT AGENCY OF THE
CITY OF LAKE ELSINORE
(SEFCL)
RESOLUTION NO. CRA 86-9
RESOLUTION OF THE REDEVELOPMENT AGENCY
OF THE CITY OF LAKE ELSINORE, RIVERSIDE
COUNTY, CALIFORNIA, SUPPLEMENTING AND
AMENDING RESOLUTION NO. CRA 86-4 AUTHORIZING
THE ISSUANCE OF $3,600,000 PRINCIPAL AMOUNT
OF TAX ALLOCATION BONDS, SERIES 1986, RANCHO
LAGUNA REDEVELOPMENT PROJECT AREA NO. II.
WHEREAS, The Redevelopment Agency of the City of Lake
Elsinore (the "Agency") is a redevelopment agency, a public body,
corporate and politic, duly created, established and authorized to
transact business and exercise powers under and pursuant to the
provisions of the Community Redevelopment Law of the State of
California, including the power to issue bonds for any of its
corporate purposes; and
WHEREAS, the Redevelopment Plan for Rancho Laguna
Redevelopment Project Area No. I2, in the City of Lake Elsinore,
California has been adopted in compliance with all requirements of
law; and
WHEREAS, the Agency has adopted Resolution CRA 86-4
authorizing the issuance of $3,600,000 principal amount of Tax
Allocation Bonds, Series 1986, Rancho Laguna Redevelopment Project
Area No. II (the "Resolution"), for the purpose of aiding in the
financing of the Redevelopment Project as provided in this
Resolution; and
WHEREAS, the Resolution, pursuant to Section 7.01, provides
for its modification or amendment, without consent of any Owners of
the Bonds, with the written approval of the Fiscal Agent, for the
purpose of correcting any defective provision contained in the
Resolution, as the Agency deems necessary; and
wHEREAS, the Aqency deems it necessary to amend the
Resolution for the purposes above stated:
NOW, THEREFORE, the Redevelopment Aqency of the City of Lake
Elsinore does hereby RESOLVE,
AND ORDER as follows:
Section 1. Amendment of Resolution. Section 6.05 of the
Resolution is hereby amended to read as follows:
Section 6.05. Deposit and Investment of Monevs in Funds.
All moneys held by the Fiscal Agent in any of the funds or accounts
established pursuant to this Resolution shall be deposited in demand
or time deposits (which may be represented by certificates of
deposit) in any bank or trust company authorized to accept deposits
of public funds (including the banking department of the Fiscal
Agent), and shall be secured at all times by obligations which are
eligible by law to secure deposits of public moneys of a market
value at least equal to the amount required by law, except such
moneys which are at the time invested as hereinafter provided.
Moneys deposited in the Bond Interest Account pursuant to
Section 3.02 (a) hereof shall be invested only in direct obligations
of the United States of America. Otherwise moneys in the Bond
Interest Account, the serial Bond Account, the Escrow Account and
the Reserve Account may, and upon the written request of the Agency
received at least two (2) days prior to such investment, shall be
invested by the Fiscal Aqent in:
(a) Federal Securities;
(b) money market funds;
(c) certificates of deposit of banks including Fiscal
Agent; or
(d) deposits with the Local Agency Investment Fund
established pursuant to Government Code Section
16429.1, but to the extent utilized by the Fiscal
Agent, only to the extent such monies are held
solely in the name of and for the benefit of the
Fiscal Agent;
maturing as hereinafter provided. Moneys in the Reserve Account may
be so invested in such obligations which by their terms mature not
later than five (5) years Prom their date of purchase or not later
than the final maturity date of the Bonds, whichever is earlier.
Moneys in the Bond Interest Account, Serial Bond Account and Escrow
Account may be so invested in such obligations which by their terms
mature prior to the date on which such moneys are required to be
paid out hereunder. The Fiscal Agent may act as principal or agent
in the acquisition or disposition of investments and the Fiscal
Agent may commingle all Funds and Accounts hereunder Por purposes of
investment. Moneys in the Special Fund and the Redevelopment Fund
may be invested by the Treasurer in any manner authorized by law for
the investment of funds by the Agency. All interest received on any
moneys so invested shall be deposited in the respective fund or
account from which such investment was made. All such interest in
excess of the amounts required to be on deposit pursuant to Section
4.07 hereof may be treated as surplus and released to the Agency
free and clear subject to the provisions of Section 4.09.
The Fiscal Agent shall sell at the best price obtainable, or
present for redemption, any investment security whenever it shall be
necessary to provide moneys to meet any required payment, transfer,
withdrawal or disbursement from the fund or account to which such
investment security is credited and Fiscal Agent shall not be liable
or responsible for any loss resulting from the acquisition or
disposition of such investment security in accordance herewith.
The Fiscal Agent and its directors, officers, employees or
agents, may in good faith buy, sell, own, hold and deal in any of
the Bonds and may join in any action which any owner of a Bond may
be entitled to take, with like effect as if the Fiscal Agent was not
the Fiscal Agent under this Resolution. The Fiscal Agent may in
good faith hold any other form of indebtedness oP the Agency, own,
accept or negotiate any drafts, bills of exchange, acceptances or
obligations of the Agency, and make disbursements for the Agency and
enter into any commercial or business arrangement therewith, without
limitation.
No investment request of the Treasurer shall impose any duty
upon Fiscal Agent which is inconsistent with its fiduciary
obligations.
At all times during which the Fiscal Agent holds monies in
the Escrow fund, it will use its best efforts to ensure that those
monies are invested at a rate of at least five and one-half percent
(5.5%).
Section 2. Effective Date. This resolution shall take
effect from and after the 7th day of August, 1986.
PASSED, APPROVED AND ADOPTED by the Board of Directors
of the Redevelopment Agency of the City of Lake Elsinore, California,
at a regular meeting held on this 23rd day oP December, 1986, by the
following vote, to wit:
AYES: BOARDMEMBERS: DOMINGUEZ, MATSON, WINKLER, STRIGOTTE
NOES: BOARDMEMBERS: VERMILLION
ABSENT:
. NONE
ABSTENTIONS: BOARDMEMBERS: NONE
~,~~
~HN MATSO , CHAIRMAN
REDEVELOPMENT AGENCY OF THE
CITY OF LAKE ELSINORE
~
RONALD MOLENDYK, SECRETARY OF THE
REDEVELOPNIENT AGE CY OF THE CITY
OF LAKE ELSINORE
APPROVED AS TO FORM AND LEGALITY:
~~
JOHN HARPER, AGE C COUNSEL TO THE
REDEVELOPMENT AG Y OF THE CITY
OF LAKE ELSINORE
STATE OF CALIFORNIA )
) ss.
COUNTY OF RIUERSIDE )
I, Jo Ann Oliver, Clerk of the Board of the Redevelopment Agency
of the City of Lake Elsinore, DO HEREBY CERTIFY that the foregoing resolution
was duly adopted by the Board of Directors of said Aaency at a regular
meeting of said Board held on the 23rd day of December, 1986 ~
and that it was so adopted by the following vote:
I AYES: 60ARDMEMBERS: DOMINGUEZ, MATSON, UIINKLER, STRIGOTTE
NOES: BOARDMEMBERS: VERP4ILLION
ABSENT: BOARDMEMBERS: NOPJE
ABSTENTIOP~S: BOARDPIEMBERS: NONE
~ ~^'~- ~~~~~
J ANN LIVER, CLERK OF THE BOARD
EVELOPMENT AGENCY OF THE
TY OF LAKE ELSINORE
(SEAL)
STATE OF CALIFORNIA )
) ss.
COUNTY OF RIVERSIDE )
I, Ron Molendyk, Secretary of the Redevelopment Agency of the
City of Lake Elsinore, DO HEREBY CERTIFY that the above and foregoing
is a true and correct copy of Resolution No. CRA 86-9 , of said
Agency and that the same has not been amended or repea~e~-
DATED
January 14~ 1987
~
RON MOLENDY , SECRETARY
REDEVELOPMENT AGENCY OF THE
CITY Of LAKE ELSINORE
( SE{kL )
RESOLUTION NO. rRA RF-10
A RESOLUTION OF THE BOARD OF DIRECTORS OF
THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE
ELSINORE, CALIFORNIA, APPROVING THE
APPOINTMENT OF SEATTLE-FIRST NATIONAL BANK,
AS COLLATERAL AGENT, AND AUTHORIZING ACTIONS
IN CONNECTION THEREWITH
WHEREAS, the Redevelopment Agency o£ the City of Lake
Elsinore (the "Agency"), pursuant to Chapter 8(commencing with ~
Section 33750) of Part 1 of Division 24 of the Health and
Safety Code of the State of California, has authorized the
issuance and sale of its revenue bonds for the purpose of
providing financing for the acquisition, construction, and
equipping of multifamily rental housing development within the
City of Lake Elsinore (the "City"); and
WHEREAS, a letter of credit dated as of October 1,
1985 (the "Letter oP Credit") was issued by Mercury Savings and
Loan Association ("Mercury") to secure the payments to the
Trustee when due, and collateral was deposited with First
Interstate Bank of California, as collateral agent, pursuant to
an Assignment of Collateral and Trust Agreement, dated as of
October 1, 1986 (the "Original Collateral Agreement"), to
secure the performance by Mercury of its obligations under the
Letter of Credit, all for the benefit of the bondholders; and
WHEREAS, Mercury has elected to remove the collateral
agent designated in the Original Collateral Agreement and to
appoint Seattle-First National Bank, as collateral agent under
the Restated Assignment of Collateral and Trust Agreement,
dated as of December 15, 1986 (the "Restated Collateral
Agreement"):
NOW, THEREFORE, BE IT RESOLVED by the Board of
Directors of the Redevelopment Agency of the City of Lake
Elsinore, as follows:
SECTION 1. The above recitals and each of them are true and
correct.
SECTION 2. The removal of the collateral agent under the
Original Collateral Agreement and the appointment
of Seattle-First National Bank, as collateral
agent under the Restated Collateral Agreement is
hereby approved.
SECTION 3. The Chairman and/or Vice Chairman, Secretary and
Executive Director of the Agency are hereby
authorized and instructed to execute such
documents, including a waiver of notice and other
relevant provisions of the Indenture, and to take
such other actions as are necessary in the
opinion of the Executive Director at the
recommendation of Nazarek, Harper, Hopkins &
McFarlin, as bond counsel, to accomplish the
purposes of this resolution.
SECTION 4. This resolution shall take effect from and after
its adoption.
PASSED, APPROVED and ADOPTED by the Board of Directors
of the Redevelopment Agency of the City of Lake Elsinore,
California, at a regular meeting held on this 23rd day
of ~aramhar~ 1986, by the following vote~ to wit:
AYES: BOARDMEMBERS: DOMINGUEZ, MATSON, WINKLER, STRIGOTTE
NOES: BOARDMEMBERS: VERMILLION
ABSENT: BOARDMEMBERS: NONE
ABSTAIN: BOARDMEMBERS: NONE
~~a~aa~
J MATSON, Chairman of the
Redevelopment Agency of the
City of Lake Elsinore
~~ ~' ~-~ ~.
RONALD MOLENDYK, Se retary of
the Redevelopment Agency of
the City of Lake Elsinore
APPROVED AS TO FORM:
JOHN R. HARPER, Agency Counsel
to the Redevelopment Agency
of the City of Lake Elsinore
2.
~ _.
, STATE OF CALIFORNIA )
', ) ss.
j COUNTY OF RIVERSIDE )
I, Jo Ann Oliver, Clerk of the Board of the Redevelopment Agency
of the City of Lake Elsinore, DO HEREBY CERTIFY that the foregoing resolution
was duly adopted by the Board of Directors of said Aoency at a regular
meeting of said Board held on the 23rd day of December, 1986 >
and that it was so adopted by the following vote:
AYES: 60ARDMEMBEP.S: DOMINGUEZ, P4ATSON, WINKLER, STRIGOTTE
NOES: BOARDMEMBERS: VERMILLION
ABSENT: BOARDMEMBERS: NONE
ABSTENTIONS: BOARDP1EMBEP.S: NONE
J NN OLIVER, CLERK OF THE BOARD
E EVELOPMENT AGENCY OF THE
Y OF LAKE ELSINORE
(SEAL)
STATE OF CALIFORNIA
COUNTY OF RIVERSIDE
ss.
I, Ron Molendyk, Secretary of the Redevelopment Agency of the
City of Lake Elsinore, DO HEREBY CERTIFY that the above and foregoing
is a true and correct copy of Resolution No. CRA 86-10 , of said
Agency and that the same has not been amended or re- Ipea e~.
DATED: December 24, 1986
~ ~ ~ ~~~
RON MOLENDYK, SECRETARY
REDEVELOPMENT AGENCY OF THE
CITY OF LAKE ELSINORE
_ (SEAL)