HomeMy WebLinkAboutRES NO 162-03RESOLUTION NO. 1 6 2 ' 0 3
RESOLUTION AUTHORIZING ISSUANCE OF BONDS
CITY OF BAKERSFIELD
ASSESSMENT DISTRICT NO. 03-2
(BUENA VISTA RANCH/BELSERA II/MONTARA II/OLIVE PARK II)
WHEREAS, on May 14, 2003, the City Council of the City of Bakersfield
adopted its resolution of intention to order acquisition of improvements in Assessment District
No. 03-2 (Buena Vista Ranch/Belsera II/Montara II/Olive Park II), City of Bakersfield, Kern
County, California (the "Assessment District"), under the provisions of the Municipal
Improvement Act of 1913 (the "Act"), and proceedings taken under the Act led, on August 27,
2003, to the levy of special assessments by the Council against parcels of land within the
Assessment District, which assessments have been recorded in the office of the County Recorder
of the County of Kern, and have thereby become a lien on each parcel assessed; and
WHEREAS, the entitlement of property owners to pay their assessments in cash,
at discount and without interest, has been waived, and the Finance Director has certified and
filed with the City Clerk a list of assessments remaining unpaid; and
WHEREAS, the Council has determined, by separate resolution adopted on
September 10, 2003, the amount of unpaid assessments, as certified by the Finance Director, in
order to establish the final principal amount of bonds to be issued;
NOW, THEREFORE, THE CITY COUNCIL HEREBY FINDS, DETERMINES
AND RESOLVES as follows:
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ORIGINAL
SECTION 1. DEFINITIONS. Unless the context otherwise requires, the terms
defined in this Section 1 shall, for all purposes of this Resolution, have the meanings herein
specified and shall be equally applicable to both the singular and plural forms of any of the terms
herein defined.
"Act" means the Municipal Improvement Act of 1913, Sections 10000 and
following of the California Streets and Highways Code.
"Arbitrage Rebate Fund" means the fund by that name established and maintained
by the Finance Director pursuant to Section 6.5 of this Resolution.
"Bank" means U.S. Bank National Association, or its duly appointed and acting
successor as paying agent, registrar and transfer agent for the Bonds.
"Bond" or "Bonds" means the City of Bakersfield Limited Obligation
Improvement Bonds of Assessment District No. 03-2 (Buena Vista Ranch/Belsera IFMontara
II/Olive Park II), issued pursuant to the Bond Act and this Resolution, in substantially the form
provided in Exhibit A hereto.
"Bond Act" means the Improvement Bond Act of 1915, Sections 8500 and
following of the California Streets and Highways Code.
"Bond Counsel" means Orrick, Heirington & Sutcliffe LLP, San Francisco,
Califomia, serving as Bond Counsel to the City with respect to the Bonds.
"Bond Date" means the dated date of the Bonds, which shall be the date of
delivery thereof.
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ORIG~NAt
"City" means the City of Bakersfield, Kern County, California.
"Closing Date" means the date of delivery of the Bonds to the Underwriter.
"Code" means the Internal Revenue Code of 1986, as amended.
"Continuing Disclosure Certificate" means the continuing disclosure certificate of
the City, dated the Closing Date, and containing the matters required to assist the Underwriter in
complying with S.E.C. Rule 15c2-12(b)(5).
"Council" or "City Council" means the legislative body of the City of Bakersfield.
"Finance Director" means the person who is the duly appointed and acting
Finance Director of the City.
"Improvement Fund" means the fund by that name established and maintained by
the Finance Director pursuant to Section 6.1 of this Resolution.
"Interest Payment Date" means March 2 and September 2 of each year,
commencing March 2, 2004, or such later date as shall be mutually agreed upon between the
Finance Director and the Underwriter.
"Investment Earnings Fund" means the fund by that name established and
maintained by the Finance Director pursuant to Section 6.4 of this Resolution.
"Paying Agent" means the Bank.
"Redemption Fund" means the fund by that name established and maintained by
the Finance Director pursuant to Section 6.2 of this Resolution.
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"Special Reserve Fund" means the fund by that name established and maintained
by the Finance Director pursuant to Section 6.3 of this Resolution.
"Tax Certificate" means the Tax Certificate to be prepared by Bond Counsel and
executed on the Closing Date by the Finance Director, including the reoffering yield certificate
of the Underwriter attached thereto.
"Underwriter" means UBS Financial Services Inc., Los Angeles, California.
SECTION 2. ISSUANCE OF BONDS. The Council hereby authorizes the
issuance of the Bonds under the provisions of the Bond Act to represent unpaid assessments in
the amount of the unpaid assessments, rounded down, if necessary, to the nearest $5,000. Each
Bond shall be designated, "City of Bakersfield, Limited Obligation Improvement Bond,
Assessment District No. 03-2 (Buena Vista Ranch/Belsera IIAVlontara II/Olive Park II)." The
Bonds shall be dated their date of delivery and shall be issued in denominations of $5,000 or
integral multiples thereof. Bonds shall mature in principal amounts, shall bear interest at the
rates, and shall consist of serial bonds, term bonds, or any combination thereof, all as set forth in
the bond pumhase contract to be submitted by the Underwriter and approved by the Finance
Director; provided that the term bonds, if any, shall mature on September 2, of the last year of
maturity of the Bonds, and shall be subject to scheduled mandatory redemption, without
premium, in advance of maturity, as specified by Section 8 below and by the bond purchase
contract.
SECTION 3. APPOiNTMENT OF PAYiNG AGENT, REGISTRAR AND
TRANSFER AGENT. The Council hereby appoints the Bank as paying agent, registrar and
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transfer agent for the Bonds in accordance with a separate agreement to be entered into between
the City of Bakersfield and the Bank.
SECTION 4. FORM AND EXECUTION. Bonds shall be issued as fully
registered bonds substantially in the form set forth as Exhibit A to this Resolution. The Bonds
shall be signed by the Finance Director and City Clerk of the City of Bakersfield, and the seal of
the City shall be affixed. Both signatures and seal may be reproduced 9n the Bonds by facsimile,
but upon its registration or reregistration each Bond shall be authenticated by the manual
signature of the authorized representative of the Bank.
The Bank shall assign to each Bond authenticated and registered by it a distinctive
letter, or number, or letter and number, and shall maintain a record thereof which shall be
available to the City for inspection.
SECTION 5. BOOK-ENTRY BONDS. The Bonds when issued shall be initially
registered in the name of"Cede & Co.," as nominee of The Depository Trust Company, New
York, New York, and shall be initially issued as one Bond for each of the maturities of the
Bonds.
The Depository Trust Company is hereby appointed depository for the Bonds and
registered ownership of the Bonds, or any portion thereof, may not thereafter be transferred
except:
(i) To any successor of Cede & Co., as nominee of The Depository Trust
Company, or its nominee, or to any substitute depository designated pursuant to clause (ii) of
this section (a "substitute depository"); provided, that any successor of Cede & Co., as nominee
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of The Depository Trust Company or substitute depository, shall be qualified under any
applicable laws to provide the services proposed to be provided by it;
(ii) To any substitute depository not objected to by the City, upon (1) the
resignation of The Depository Trust Company or its successor (or any substitute depository or its
successor) from its functions as depository, or (2) a determination by the City to substitute
another depository for The Depository Trust Company (or its successor) because The Depository
Trust Company or its successor (or any substitute depository or its successor) is no longer able to
carry out its functions as depository; provided, that any such substitute depository shall be
qualified under any applicable laws to provide the services proposed to be provided by it; or
(iii) To any person as provided below, upon (1) the resignation of The Depository
Trust Company or its successor (or substitute depository or its successor) from its functions as
depository, or (2) a determination by the City to remove The Depository Trust Company or its
successor (or any substitute depository or its successor) from its functions as depository.
In the case of any transfer pursuant to clause (i) or clause (ii) above, upon receipt
of the outstanding Bonds by the Paying Agent, together with a written request of the City, a new
Bond for each maturity shall be executed and delivered in the aggregate principal amount of the
Bonds then outstanding, registered in the name of such successor or such substitute depository,
or their nominees, as the case may be, all as specified in such written request of the City. In the
case of any transfer pursuant to clause (iii) above, upon receipt of the outstanding Bonds by the
Paying Agent together with a written request of the City, new Bonds shall be executed and
delivered in such denominations numbered in the manner determined by the Paying Agent and
registered in the names of such persons as are requested in such written request of the City,
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subject to the limitations of this Section 5 and the receipt of such a written request of the City,
and thereafter, the Bonds shall be transferred pursuant to the provisions set forth in this
Resolution; provide& that the Paying Agent shall not be required to deliver such new Bonds
within a period of less than sixty (60) days.
So long as the outstanding Bonds are registered in the name of Cede & Co. or its
registered assigns, the City and the Paying Agent shall cooperate with Cede & Co., as sole
holder, or its registered assigns, in effecting payment of the principal of and interest on the
Bonds by arranging for payment in such manner that fimds for such payments are properly
identified and are made immediately available on the date they are due.
SECTION 6. ESTABLISHMENT OF SPECIAL FUNDS. For administering the
proceeds of the sale of bonds, the payments from property owners on account of assessments
levied, and the payment of interest and principal on the Bonds, there shall be established and
maintained five funds to be known as the Improvement Fund, the Redemption Fund, the Special
Reserve Fund, the Investment Earnings Fund and the Arbitrage Rebate Fund, respectively, for
Assessment District No. 03-2 (Buena Vista Ranch/Belsera II/Montara II/Olive Park II).
SECTION 6.1. IMPROVEMENT FUND. The Improvement Fund shall be
established and maintained by the Finance Director. Except as provided in Sections 6.2 and 6.3,
proceeds of sale of the Bonds, together with all amounts paid by property owners on the
assessments before bond issuance, if any, and the contributions from other public funds, if any,
shall be deposited in the Improvement Fund. Disbursements from the Improvement Fund shall
be made by the Finance Director in accordance with the budget of estimated costs and expenses
set forth in Exhibit B of the Final Engineer's Report, heretofore approved by the Council on
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August 27, 2003, which report and budget are subject to modification by the Council from time
to time as prescribed by the Act.
Proceeds of investment of the Improvement Fund shall be deposited in the
Investment Earnings Fund, to be established, maintained and administered in accordance with
the provisions of Section 6.4 of this Resolution.
SECTION 6.2. REDEMPTION FUND. The Redemption Fund shall be
established and maintained by the Finance Director. There shall be deposited into the
Redemption Fund, from the proceeds of the sale of bonds, the amount provided for funded
interest, which shall be the amount to pay interest on the Bonds from their dated date to
September 2, 2004. All payments of principal and interest installments on the assessments,
together with penalties, if any, and all amounts received on account of lien pay-offs shall be
deposited in the Redemption Fund, which shall be a trust fund for the benefit of the bondholders.
Monies for payment of the Bonds at maturity, or at redemption before maturity, and all interest
on the Bonds shall be disbursed to the Bank from the Redemption Fund.
Proceeds of investment of the Redemption Fund shall be retained in the
Redemption Fund, which shall at all times be administered in conformity with the limitations and
requirements specified in the Tax Certificate so as to establish and retain the status of a "Bona
Fide Debt Service Fund" (as said term is defined in the Code) for said Redemption Fund, thereby
exempting the Redemption Fund from arbitrage and rebate requirements otherwise imposed by
the Code and the regulations adopted pursuant thereto.
SECTION 6.3. SPECIAL RESERVE FUND. The Special Reserve Fund shall be
established and maintained by the Finance Director. There shall be deposited into the Special
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Reserve Fund on the Closing Date an amount equal to the least of(l) ten percent (10%) of the
proceeds of the Bond issue, (2) maximum annual debt service on the Bonds, or (3) one hundred
twenty-five percent (125%) of average annual debt service on the Bonds, which shall constitute
the "Initial Reserve Requirement." That amount, less any amounts transferred to the
Redemption Fund pursuant to Section 8884 of the Streets and Highways Code, shall constitute
the "Reserve Requirement" for the Bonds from time to time.
A. During the term of the Bonds, the amount in the Special Reserve Fund shall be
available for transfer into the Redemption Fund in accordance with Sections 8808 and 8883 of
the Streets and Highways Code. The amount so advanced shall be reimbursed to the Special
Reserve Fund from the proceeds of reinstatement of delinquencies or sale of the parcel or parcels
for which payment of delinquent assessment installments was made from the Special Reserve
Fund.
B. If any assessment is prepaid before final maturity of the Bonds, the amount of
principal which the assessee is required to prepay shall be reduced by an amount which is in the
same ratio to the original amount of the Special Reserve Fund as the original amount of the
prepaid assessment bears to the total amount of unpaid assessments originally securing the
Bonds. This reduction in the amount of principal prepaid shall be balanced by a transfer from
the Special Reserve Fund to the Redemption Fund in the same amount.
C. The amount maintained in the Special Reserve Fund shall never exceed the
Reserve Requirement. Proceeds of investment of the Special Reserve Fund shall be deposited in
the Investment Earnings Fund to be established, maintained and administered in accordance with
the provisions of Section 6.4 of this Resolution.
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D. When the amount in the Special Reserve Fund equals or exceeds the amount
required to retire the remaining unmatured Bonds (whether by advance retirement or otherwise),
the amount of the Special Reserve Fund shall be transferred to the Redemption Fund, and the
remaining installments of principal and interest not yet due from assessed property owners shall
be cancelled without payment.
SECTION 6.4. INVESTMENT EARNINGS FUND. The Investment Earnings
Fund shall be established and maintained by the Finance Director. Proceeds of the investment of
amounts in the Improvement Fund and the Special Reserve Fund will be deposited in the
Investment Earnings Fund. As of June 30 of each year during the term of the Bonds, the Finance
Director shall determine or cause to be determined whether any portion of investment earnings
must be rebated to the United States pursuant to Section 148 of the Code and regulations adopted
thereunder. The Finance Director is authorized to retain independent attorneys, accountants and
other consultants to assist in complying with arbitrage and rebate requirements and restrictions
imposed by the Code and regulations adopted thereunder.
Any amounts required to be rebated will be transferred to the Arbitrage Rebate
Fund, and the balance, if any, remaining following such transfer to the Arbitrage Rebate Fund,
will be transferred as follows:
(a) To the extent that the balance in the Special Reserve Fund is less than the
Reserve Requirement, a transfer will be made from the Investment Earnings Fund to the Special
Reserve Fund.
(b) The remaining balance in the Investment Earnings Fund, if any, will be
transferred to the Improvement Fund until the authorized improvements are completed and the
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OF~IGINA~
Improvement Fund is closed; thereafter the balance in the Investment Eamings Fund will be
transferred to the Redemption Fund to be used, in the discretion of the Finance Director, as a
credit upon the annual installments of assessment or for the advance retirement of Bonds.
SECTION 6.5. ARBITRAGE REBATE FUND. The Arbitrage Rebate Fund
shall be established and maintained by the Finance Director. Amounts in the Arbitrage Rebate
Fund shall be invested in the same manner as amounts in the other funds and shall be held in
trust for rebate to the United States at the times required by Section 148 of the Code and
regulations adopted thereunder.
SECTION 6.6. RETURN OF UNCLAIMED FUNDS. Other provisions of this
Resolution to the contrary notwithstanding, the Bank shall return to the City any funds held by it
hereunder not later than thirty (30) days before those funds would escheat to the State of
California under any law now or hereafter enacted.
SECTION 7. PAYMENT ON BONDS. The principal and redemption premium,
if any, on the Bonds shall be payable at the office of the Bank in St. Paul, Minnesota, upon
presentation and surrender of such Bonds to the Bank by the registered owners thereof on their
maturity dates or on redemption prior to maturity. Interest shall be paid by check mailed by first
class mail, postage prepaid, to the registered owner of each Bond at the owner's address
appearing on the register maintained by the Bank, as registrar, on the 15th day of the month
preceding the date of payment (or, in the case of an owner of at least $1,000,000 in principal
amount of the Bonds who so requests in writing prior to the close of business on the fifteenth day
of the month immediately preceding each Interest Payment Date, by wire transfer).
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Upon the payment and cancellation of any Bond, the Bond shall be destroyed, and
the Bank shall furnish the City a certificate of destruction.
SECTION 8. ADVANCE RETIREMENT OF BONDS. Any Bond or any
portion thereof in the amount of $5,000 or any integral multiple thereof outstanding, may be
redeemed and paid in advance of maturity upon the second day of March or September in any
year by giving at least 30 days' notice by registered or certified mail or by personal service to the
registered owner thereof at such owner's address as it appears on the registration books of the
Bank and by paying principal and accrued interest, together with a redemption premium
(calculated as a pementage of the par value of Bonds being redeemed) as follows for the
respective March 2 or September 2 redemption dates:
Redemption Dates
(March 2 or September 2)
March 2, 2004 through September 2, 2013
March 2, 2014 and September 2, 2014
March 2, 2015 and September 2, 2015
March 2, 2016 and thereafter
Redemption Premium
3.0%
2.0%
1.0%
0.0%
The foregoing schedule of redemption premittms shall be subject to modification
by mutual consent of the Finance Director and the Underwriter.
In addition to redemption in advance of maturity in accordance with the
foregoing, the term Bonds, if any, shall be subject to partial mandatory advance redemption, by
lot, without premium, on each September 2 on and after the September 2 specified in the bond
purchase contract in accordance with the schedule set forth in said bond purchase contract.
SECTION 9. REREGISTRATION. Any Bond may be registered to a new owner
by completing the assignment certificate on the reverse of the Bond and delivering the Bond to
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the registrar, and upon payment by the person requesting such reregistration of any tax or other
governmental charge required to be paid with respect to such reregistration. Upon reregistration,
any Bond may be replaced by one or more Bonds of the same maturity and aggregate amount in
denominations of $5,000 or any integral multiple thereof.
SECTION 10. COVENANTS. In the event of a default in the payment of any
Bond or any installment of interest thereon, bondholders shall have the remedies set forth in the
Bond Act. In addition, the Council makes the following covenants, which shall constitute a
contract with the bondholders:
SECTION 10.1. COLLECTION OF INSTALLMENTS. Annually, and in
accordance with the provisions of the Bond Act and the Final Engineer's Report, the City shall
establish the amount to be posted to the secured property tax roll of Kern County on account of
each parcel for which the assessment remains unpaid, and the City shall transmit to the Kern
County Auditor a list or record of such installment amounts, together with the corresponding
assessment number and assessor's tax number, in such format as the County Auditor shall
reasonably require and not later than such date as the County Auditor shall reasonably establish,
for collection on such secured property tax roll and remittance to the City, as provided by the
Bond Act.
SECTION 10.2. FORECLOSURE OF LIENS. No later than October 1 in any
year, the City shall file an action in the Superior Court to foreclose the lien on each delinquent
assessment if(l) the sum of uncured assessment delinquencies for the preceding fiscal year
exceeds five percent (5%) of the assessment installments posted to the tax roll for that fiscal
year, and (2) the amount of the Special Reserve Fund is less than the Reserve Requirement.
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SECTION 10.3. ARBITRAGE. During the term of the Bonds, the City will
make no use of bond proceeds which, if such use had been reasonably expected at the date the
Bonds are issued, could have caused the Bonds to be "arbitrage bonds" within the meaning of
Section 148 of the Code and the regulations adopted thereunder, and further shall rebate to the
United States any amounts required to be rebated on account of arbitrage in accordance with the
provisions of the Code and those regulations.
SECTION 10.4. MAINTENANCE OF TAX EXEMPTION. The City will
adhere to the restrictions and comply with the requirements set forth in the Tax Certificate and
will otherwise take all reasonable actions required to maintain the status of interest on the Bonds
as excludable from gross income for federal income tax purposes and as exempt from the State
of California personal income taxes. Without limiting the generality of the foregoing, the City
further covenants that, prior to making any change to or taking or omitting to take any action
with respect to any of the agreements, requirements or procedures contained or referred to in this
Resolution, the Tax Certificate or other relevant documents pertaining to the Bonds, the City
shall do either of the following: (1) obtain a subsequent opinion of Orrick, Herdngton &
Sutcliffe LLP ("Bond Counsel") that such change, action or omission will not adversely affect
the exclusion from gross income for federal income tax purposes of interest on the Bonds or (2)
obtain an opinion of alternative nationally recognized bond counsel to the effect originally
delivered by Bond Counsel that, notwithstanding such change, action or omission, interest on the
Bonds is excluded from gross income for federal income tax purposes.
SECTION 10.5. CONTINUING DISCLOSURE. The City hereby covenants and
agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure
Certificate of the City. In the event of failure of the City to comply with the Continuing
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Disclosure Certificate of the City, the Underwriter and any Bondholder may take such actions as
may be necessary and appropriate, including seeking mandate or specific performance by court
order, to cause the City to comply with its obligation under this Section 10.5 and under the
Continuing Disclosure Certificate of the City.
I HEREBY CERTIFY that the foregoing resolution was passed and adopted by
the Council of the City of Bakersfield at a regular meeting thereof held on September 10, 2003,
by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
CARSON, BENHAM, MAGGARD, COUCH, HANSON, SULLIVAN, SALVAGGIO
COUNCILMEMBER
COUNCILMEMBER ~
COUNCILMEMBER ~
COUNCILMEMBER ~
City Clerk and Ex Officio
Clerk of the Council of the City of Bakersfield
AP PROV~~~
HARVEY L. HALL, MAYOR
APPROVED AS TO FORM:
COUNTERSIGNED:
BART J. THILTGEN
City A~0J]le~y
By
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15
REGISTERED
Number
EXHIBIT A
United States of America
State of California
County of Kern
CITY OF BAKERSFIELD
LIMITED OBLIGATION IMPROVEMENT BOND
ASSESSMENT DISTRICT NO. 03-2
(Buena Vista Ranch/Belsera II/Montara II/Olive Park II)
REGISTERED
$
1NTEREST RATE MATURITY DATE BOND DATE
% September 2, __
CUS~NUMBER
REGISTERED OWNER: CEDE & CO.
PRINCIPAL SUM:
DOLLARS
Under and by virtue of the Improvement Bond Act of 1915, Division 10
(commencing with Section 8500), of the Streets and Highways Code, (the "Act"), the City of
Bakersfield, County of Kern, State of Califomia, (the "City"), will, out of the redemption fund
for the payment of the Bonds issued upon the unpaid portion of assessments made for the
acquisition, work and improvements more fully described in proceedings taken pursuant to
Resolution of Intention No. 1300, adopted by the Council of the City of Bakersfield on the 14th
day of May, 2003, pay to the registered owner stated above or registered assigns, on the maturity
date stated above, the principal sum stated above, in lawful money of the United States of
America and in like manner will pay interest from the interest payment date next preceding the
date on which this Bond is authenticated, unless this Bond is authenticated and registered as of
an interest payment date, in which event it shall bear interest from such interest payment date, or
unless this Bond is authenticated and registered prior to February 15, 2004, in which event it
shall bear interest from its date, until payment of such principal sum shall have been discharged,
at the rate per annum stated above, payable semiannually on March 2 and September 2 in each
year commencing on March 2, 2004. Both the principal hereof and redemption premium, if any,
hereon are payable at the office of U.S. Bank National Association, as Paying Agent, Registrar
and Transfer Agent, in St. Paul, Minnesota (the "Bank"), and the interest hereon is payable by
check mailed by first class mail, postage prepaid, on each interest payment date to the owner
hereof at the owner's address as it appears on the registration books of the Bank, or at such
address as may have been filed with the Bank for that purpose, as of the fifteenth day of the
month preceding each interest payment date (or, in the case of an owner of at least $1,000,000 in
principal amount of the Bonds who so requests in writing prior to the close of business on the
fifteenth day of the month immediately preceding each interest payment date, by wire transfer).
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ORiGifvA~
This Bond will continue to bear interest after maturity at the rate above stated,
provided, it is presented at maturity and payment thereof is refused upon the sole ground that
there are not sufficient moneys in said redemption fimd with which to pay same. If it is not
presented at maturity, interest thereon will nm until maturity.
This Bond shall not be entitled to any benefit under the Act or the Resolution
Authorizing Issuance of Bonds (the "Resolution of Issuance"), or become valid or obligatory for
any purpose, until the certificate of authentication and registration hereon endorsed shall have
been dated and signed by the Bank.
[Except for the term Bonds maturing in the year 20__,] each Bond is one of
several annual series of Bonds of like date, tenor and effect, but differing in amounts, maturities
and interest rates, issued by the City of Bakersfield under the Act and the Resolution of Issuance,
for the purpose of providing means for paying for the acquisition of improvements described in
said proceedings, and is secured by the moneys in said redemption fund and by the unpaid
portion of said assessments made for the payment of said acquisition of improvements, and,
including principal and interest, is payable exclusively out of said fund.
This Bond or any portion of it in the amount of $5,000 or any integral multiple
thereof, may be redeemed and paid in advance of maturity upon the second day of March or
September in any year by giving at least 30 days' notice by registered or certified mail to the
registered owner hereof at such owner's address as it appears on the registration books of the
Bank and by paying the principal and accrued interest, together with a redemption premium
(calculated as a percentage of the par value of the Bonds being redeemed) as follows for the
respective March 2 and September 2 redemption dates:
Redemption Dates
(March 2 or September 2)
Redemption Premium
March 2, 2004 through September 2, 200_ 3.0%
March 2, 20__ and September 2, 20__ 2.0%
March 2, 20__ and September 2, 20__ 1.0%
March 2, 20__ and thereafter 0.0%
In addition to redemption in advance of maturity in accordance with the
foregoing, the term Bonds maturing on September 2, 20~, are subject to partial mandatory
advance redemption, by lot, without premium, on each September 2 on and after September 2,
20~, in accordance with the following schedule and in the following principal amounts:
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Year
{September 2)
20
20__ (maturity)
Principal Amount
$ (To Come)
This Bond is transferable by the registered owner hereof, in person or by the
owner's attorney duly authorized in writing, at said office of the Bank, subject to the terms and
conditions provided in the Resolution of Issuance, including the payment of certain charges, if
any, upon surrender and cancellation of this Bond. Upon such transfer, a new registered Bond or
Bonds, of any authorized denomination or denominations, of the same maturity, for the same
aggregate principal amount, will be issued to the transferee in exchange therefor.
Bonds shall be registered only in the name of an individual (including joint
owners), a corporation, a partnership or a trust.
The Bank shall not be required to make such exchange or registration of transfer
of Bonds during the period commencing with the fifteenth (15th) day of the month preceding any
interest payment date and ending on said interest payment date.
The City will not obligate itself to advance available funds from the City treasury
to cure any deficiency which may occur in the bond redemption fund. A determination not to
obligate itself shall not prevent the City from, in its sole discretion, so advancing funds.
The City and the Bank may treat the registered owner hereof as the absolute
owner for all purposes, and the City and the Bank shall not be affected by any notice to the
contrary.
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1N WITNESS WHEREOF, said City of Bakersfield has caused this Bond to be
signed manually or in facsimile by the Finance Director of said City and by its City Clerk, and
has caused its corporate seal to be reproduced in facsimile hereon all as of the day of
., 2003.
CITY OF BAKERSFIELD
City Clerk
Finance Director
(SEAL)
CERTIFICATE OF AUTHENTICATION AND REGISTRATION
This is one of the Bonds described in the within mentioned Resolution of Issuance, which has
been authenticated and registered on ., 2003.
U.S. BANK NATIONAL ASSOCIATION
as paying agent, registrar and transfer agent
By_
Authorized Signatory
DOCSSF1:700851.1
40213-31 SS4 A-4
)~4 G~NA~
[Form of Assignment]
ASSIGNMENT
For value received the undersigned do(es) hereby sell, assign and transfer unto
the within Bond and
do(es) hereby irrevocably constitute and appoint
attorney to
transfer the same on the register of the Paying Agent, with full power of substitution in the
premises.
Date:
SIGNATURE GUARANTEED:
NOTE:
The signature(s) to this Assignment must correspond with the name(s) as written
on the face of the within Bond in every particular, without alteration or
enlargement or any change whatsoever. The signature(s) must be guaranteed by
an eligible guarantor institution.
Social Security Number, Taxpayer Identification Number or other Identifying
Number of Assignee:
DOCSSFl:700851.1
40213~31 SS4
A-5