HomeMy WebLinkAboutRES NO 174-95 RESOLUTION NO. 1 ? 4 ' 9 5
RESOLUTION ~UTHORIZING ISSU~CE OF BONDS
CITY OF B~ERSFIELD
ASSESSMENT DISTRICT NO. 94-3
(SILVER CREEK/BRIMH~LL NORTH/SEVEN O~KS/SOUTH L~URELGLEN)
WHEREAS, on December 14, 1994, the City Council of the
City of Bakersfield adopted its resolution of intention to order
acquisition of improvements in Assessment District No. 94-3
(Silver Creek/Brimhall North/Seven Oaks/South Laurelglen), City
of Bakersfield, Kern County, California, under the provisions of
the Municipal Improvement Act of 1913 (the "Act"), as amended,
and proceedings taken under the Act led, on September 27, 1995,
to the levy of special assessments by the Council against parcels
of land within the assessment district in the total amount of
$9,830,000.00, which assessments were recorded on September 29,
1995, in the office of the County Recorder of the County of Kern,
and thereupon became a lien on each parcel assessed; and
WHEREAS, the period within which property owners may
pay their assessments in cash, at discount and without interest,
expired on October 30, 1995, 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 this same date, 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:
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.
"Bank" means Bank of America, National Trust and
Savings 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. 94-3
(Silver Creek/Brimhall North/Seven Oaks/South Laurelglen), 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, Herrington & Sutcliffe,
San Francisco, California, 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.
"City" means the City of Bakersfield,
California.
Kern County,
"Council" or "City Council" means the legislative body
of the City of Bakersfield.
"Closing Date" means the date of delivery of the Bonds
to the Underwriter.
"Code" means the
amended.
Internal Revenue Code of 1986, as
"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, 1996.
"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.
"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 Sutro & Co., San Francisco,
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 an amount of $ 9.770,000.00
which is equal to the unpaid assessments, rounded down to the
nearest $5,000. Each Bond shall be designated, "City of
Bakersfield, Limited Obligation Improvement Bond, Assessment
District No. 94-3 (Silver Creek/Brimhall North/Seven Oaks/South
Laurelglen)." 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 purchase contract to be submitted by the Underwriter
and approved by the Finance Director.
SECTION 3. APPOINTMENT OF PAYING AGENT, REGISTRAR AND
TRANSFER AGENT. The Council hereby appoints the Bank as paying
agent, registrar and 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 on 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
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, 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; provided, 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 funds 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. 94-3 (Silver
Creek/Brimhall North/Seven Oaks/South Laurelglen). ·
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 September 27, 1995, 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, 1996. 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" 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 Reserve Fund
the amount equal to the "Initial Reserve Requirement" from the
proceeds of the sale of bonds. The Initial Reserve Requirement
shall be an amount equal to the lesser of (1) 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, and 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 th~
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.
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.
$F2-50115.1 ]0 40213-13-SS4-10/1 $/95
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 will be transferred
as follows:
(a)
Reserve Fund
To the extent that the balance in the Special
is less than the Reserve Requirement, a transfer
will be made from the Investment Earnings Fund to the Special
Reserve Fund.
(b)
Fund, if any,
The remaining balance in the Investment Earnings
will be transferred to the Improvement Fund until
the authorized improvements are completed and the Improvement
Fund is closed; thereafter the balance in the Investment Earnings
Fund will be transferred to the Redemption Fund to be used, in
the discretion of the Finance Director, as a credit upon the
S1~2-50115.1 1 1 40213-13~84-10/18/95
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 Los Angeles, California, 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
sn-sotts.~ 12 4ff213-13~s4-10/18/95
the month immediately preceding each interest payment date, by
wire transfer).
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 percentage of the par
value of Bonds being redeemed) as follows for the respective
March 2 or September 2 redemption dates:
Redemption Dates Redemption Premium
(March 2 or September 2)
September 2, 1996 through September 2, 2005 3.0%
March 2, 2006 and September 2, 2006 2.0%
March 2, 2007 and September 2, 2007 1.0%
March 2, 2008 and thereafter 0.0%
In addition to redemption in advance of maturity in
accordance with the foregoing, the term Bonds maturing on
September 2, 2015, 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 agreement in
accordance with the schedule set forth in said bond purchase
agreement.
sn-5o 5, 13 40213_13_ss4.1o/1 /95
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 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. 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 (1) 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.
SECTION 10.2. 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
$F2-~0115.1 14 40213-13-S84-10/18/9S
adopted thereunder, and further shall rebate to the United States
any amounts required to be rebated on account of arbitrage in
accordance with the provisions of the Code and those regulations.
SECTION 10.3. MAINTENANCE OF TAX EXEMPTION. The
City will take all reasonable actions required to maintain the
status of interest on the Bonds as excludable from gross income
for federal income tax purposes and as exempt from the State of
California personal income taxes. Without limiting the
generality of the foregoing, the City will adhere to the
restrictions and comply with the requirements set forth in the
Tax Certificate.
SECTION 10.4. CONTINUING DISCLOSURE. The City
hereby covenants and agrees that it will comply with and carry
out all of the provisions of the Continuing Disclosure
Certificate. In the event of failure of the City to comply with
the Continuing Disclosure Certificate, the Underwriter and any
Bondholder may take such actions as may be necessary and
appropriate, including seeking mandate or specific performance by
court order, to cause the City to comply with its obligation
under this Section 10.4 and under the Continuing Disclosure
Certificate.
I HEREBY CERTIFY that the foregoing Resolution was
passed and adopted by the Council of the City of Bakersfield at a
regular meeting thereof held on November 8, 1995 by the following
vote:
AYES: COUNCILMEMBER DeMOND, CARSOfi~ SMITH,.~IcBERMOTF, ROW[ES, S[JU. IVAN, SALVAC-GIO
NOES: COUNCILMEMBER_ /~[(,J~, ~
A~STAIN: COUNCILMEMBER. ~(~f[ ~
ASSENT: COUNCILMEMBER /~(~ ~
?
City Clerk and Ex Offlclo
Clerk of the Council of the
City of Bakersfield
APPROVED this 8th day of November, 1995
MAYOF/of the City of Bakersfield
APPROVED AS TO FORM:
ORRICK, HERRINGTON & SUTCLIFFE
Bond;ou~.
COUNTERSIGNED:
CITY ATTORNEY of the
City of Bakersfield
SF~-$OI l$.l 16 4021~-13~8~-10/18/95
EXHIBIT
United States of America
State of California
County of Kern
REGISTERED REGISTERED
Number $
CITY OF BAKERSFIELD
LIMITED OBLIGATION IMPROVEMENT BOND
ASSESSMENT DISTRICT NO. 94-3
(SILVER CREEK/BRIMHALL NORTH/SEVEN OAKS/SOUTH LAURELGLEN)
INTEREST RATE MATURITY DATE BOND DATE
% September 2, , 1995
CUSIP NUMBER
REGISTERED OWNER:
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 California, (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. __., adopted by the Council of
the City of Bakersfield on the 14th day of December, 1994, 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 March 2, 1996, 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, 1996. Both the principal hereof and redemption
premium, if any, hereon are payable at the office of Bank of
America, NT&SA, as Paying Agent, Registrar and Transfer Agent, in
Los Angeles, California (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).
REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS BOND SET
FORTH IN THE REVERSE SIDE HEREOF WHICH SHALL FOR ALL PURPOSES
HAVE THE SAME EFFECT AS THOUGH FULLY SET FORTH HEREIN.
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 fund with which to pay
same. If it is not presented at maturity, interest thereon will
run 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.
IN WITNESS WHEREOF, said City of Bakersfield has caused this
Bond to be signed in facsimile by the Finance Director of said
City and by its Clerk, and has caused its corporate seal to be
reproduced in facsimile hereon all as of the day
, 1995.
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
BANK OF AMERICA, NT&SA
as paying agent, registrar and transfer agent
By
Authorized Signatory
8F2-50115.1 2 40213-13-884-10/18/95
(REVERSE OF BOND)
CITY OF BAKERSFIELD
LIMITED OBLIGATION IMPROVEMENT BOND
ASSESSMENT DISTRICT NO. 94-3
(SILVER CREEK/BRIMHALL NORTH/SEVEN OAKS/SOUTH LAURELGLEN)
ADDITIONAL PROVISIONS OF THE BOND
Except for the term Bonds maturing in the year 2015, 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 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.
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
September 2, 1996 through September 2, 2005 3.0%
March 2, 2006 and September 2, 2006 2.0%
March 2, 2007 and September 2, 2007 1.0%
March 2, 2008 and thereafter 0.0%
In addition to redemption in advance of maturity in
accordance with the foregoing, the term Bonds maturing on
September 2, 2015, 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:
Year
(September 2)
Principal Amount
20
2015
(maturity)
$ (To Come)
I hereby certify that the following is a correct copy of the
signed legal opinion of ORRICK, HERRINGTON & SUTCLIFFE, San
Francisco, California, on file in my office.
City Clerk
[Form of Legal Opinion]
[Form of Assignment]
ASSIGNMENT
For value received the undersigned do(es)
assign and transfer unto
hereby sell,
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:
SP2-50115.1 5 40213-13-884-10/18/95