HomeMy WebLinkAboutRES NO 99-91RESOLUTION DETERI, f~N~NG UNPaiD ~.SSESSMENTS
PROVIDING FOR ~SSU.%NCE OF BONDS
~ENDING RESOLUTION OF INTENTION NO. L078
C~TY OF B~KERSF~ELD
~SSESSHENT D~STR~CT NO. 90-L
(~E~ETT~ TRUNK SE~ER/C~LLOW~Y C~%N~., RELOC~T~ON)
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL (the
"Council") OF THE CITY OF BAKERSFIELD (the "City") as follows:
WHEREAS, on March 27, 1991, the Council passed and
adopted Resolution of Intention No. 1078, regarding the
construction of improvements (the "Improvements") under and
pursuant to the provisions of the Municipal Improvement Act of
1913, and therein provided that serial bonds would be issued
thereunder pursuant to the provisions of the Improvement Bond Act
of 1915, reference to said Resolution of Intention hereby being
made for further particulars; and
WHEREAS, notice of the recordation of the assessment and
of the time within which assessments were to be paid in cash was
duly published and mailed in the manner provided by law, and the
time so provided for receiving payment of assessments in cash has
been waived in writing by all owners of all property subject to
assessment, and the Treasurer of the City, the official who has
been designated by the Council as Collection Officer for cash
payments of the assessments, has filed herewith for presentation to
the Council a list of all assessments which remain unpaid; and
WHEREAS, the Council has duly considered the list and has
determined that the same is an accurate statement thereof;
NOW, THEREFORE, IT IS HEREBY FOUND, DETERMINED AND
ORDERED, 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 Improvement Bond Act of 1915, Division 10
of the Streets and Highways Code of the State of California.
"Aaent" means the transfer agent, registrar and paying
agent appointed pursuant to Section 31 of this Resolution.
"Arbitraqe Bonds" means each and all bonds in an issue
when any portion of the proceeds of the issue are reasonably
expected (at the time of issuance of the bond) to be used directly
or indirectly (1) to acquire Higher Yielding Investments, or (2) to
replace funds which were used directly or indirectly to acquire
Higher Yielding Investments. A bond which was not an Arbitrage
Bond at the time it was issued can become an Arbitrage Bond if the
issuer intentionally uses any portion of the proceeds of the issue
of which such bond is a part for one of the purposes described in
(1) or (2) above.
"Bond" or "Bonds" means the City of Bakersfield
Assessment District No. 90-1 Limited Obligation Improvement Bonds,
issued pursuant to the Act and this Resolution, in the form
substantially provided in Exhibit "A" attached hereto and made a
part hereof.
"Bond Counsel" means the law firm of Jackson, Hargrove,
Hillison & Emerich, Fresno, California.
"Bond Date" means the dated date of the Bonds, which is
, 1991.
"Bond Denomination" means the amount of $5000.00, which
is the minimum amount in which the Bonds may be issued, except that
one Bond, due in 1992, will include the amount by which the
principal amount of the issue exceeds the largest integral multiple
of $5,000.00 contained therein.
"Bond Year" means the twelve-month period beginning on
September 2 of each year and ending September 1 of the following
year. The first Bond Year shall begin on the Closing Date and end
September 1, 1991.
"Closinq Date" means the date upon which there is an
exchange of the Bonds for the proceeds representing the purchase of
the Bonds by the Original Purchaser.
"Code" means the Internal Revenue Code of 1986, as
amended.
"Debt Service" means the scheduled amount of interest and
amortization of principal payable on the Bonds during the period of
computation, excluding amounts scheduled during such period which
relate to principal which has been retired before the beginning of
such period.
Revised 5/30/91
"Determination Date" means the last day of each Rebate
"Gross Proceeds" means the sum of the following amounts:
(i) original proceeds, namely, net amounts (after
payment of all expenses of issuing the Bonds) received by or
for the Issuer as a result of the sale of the Bonds, excluding
original proceeds which become transferred proceeds
(determined in accordance with applicable Regulations) of
obligations issued to refund in whole or in part the Bonds;
(ii) investment proceeds, namely, amounts received
at any time by or for the Issuer, such as interest and
dividends, resulting from the investment of any original
proceeds (as referred to in clause (i) above) or investment
proceeds (as referred to in this clause (ii)) in Nonpurpose
Obligations, increased by any profits and decreased (if
necessary, below zero) by any losses on such investments,
excluding investment proceeds which become transferred
proceeds (determined in accordance with applicable
Regulations) of obligations issued to refund in whole or in
part the Bonds;
(iii) sinking fund proceeds, namely, amounts, other
than original proceeds or investment proceeds (as referred to
in clauses (i) and (ii) above) of the Bonds, which are held in
the Redemption Fund and any other fund to the extent that the
Issuer reasonably expects to use such other fund to pay Debt
Service on the Bonds;
(iv) amounts in the Reserve Fund or in any fund
established as a reasonably required reserve or replacement
fund;
(v) Investment Property pledged as security for
payment of Debt Service on the Bonds by an ultimate obligor or
a related person or by the Issuer;
(vi) amounts, other than as specified in this
definition, used to pay Debt Service on the Bonds; and
(vii) amounts received as a result of investing
amounts described in this definition.
"Hioher Yieldino Investments" means any investment
property which produces a yield over the term of the issue which is
materially higher than the yield on the issue.
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"Improvement Fund" means the fund established by the
Treasurer into which shall be placed the proceeds received from the
sale of the Bonds, including any premium, all pursuant to Section
9 hereof.
"Interest Payment Date" means the dates upon which
interest on the Bonds is payable, commencing on March 2, 1991, and
semiannually thereafter on September 2 and March 2 of each year to
maturity.
"Investment ProDertv" means any security (as said term is
defined in Section 165(g) (2)(A) or (B) of the Code), obligation,
annuity or investment-type property, excluding, however,
obligations the interest on which is exempt from income tax under
Section 103 of the Code.
"Issuance Costs" means all applicable costs and expenses
of issuance of the Bonds, including, but not limited to:
(i) Underwriters' fees other than those taken in
the form of a discount on the Closing Date;
(ii) counsel fees, including Bond Counsel, Under-
writers' counsel, Issuer's counsel and special tax counsel
fees, as well as any other specialized counsel fees incurred
in connection with the borrowing;
(iii) financial advisor fees incurred in connection
with the issuance of the Bonds;
(iv) rating agency fees;
(v) trustee fees and trustee counsel fees;
(vi) paying agent and certifying and authenticating
agent fees related to issuance of the Bonds;
(vii) accountant fees related to issuance of the
Bonds;
(viii) printing costs of the Bonds and of the
preliminary and final official statement;
(ix) publication costs associated with the financing
proceedings; and
(x) costs of engineering and feasibility studies
necessary to the issuance of the Bonds.
Revised 5/30/91 -4-
"Issuer" means the issuer of the Bonds, which is the City
of Bakersfield, County of Kern, State of California.
"Net Proceeds of the Bonds" means proceeds of the Bonds
received by or for the Issuer on the Closing Date, less amounts
used to pay Issuance Costs and less amounts deposited on the
Closing Date in the Reserve Fund, if any.
"Nonpurpose Investment" means any Investment Property
which is acquired with the Gross Proceeds of the Bonds and is not
acquired in order to carry out the governmental purpose of the
Bonds.
"OriGinal Purchaser" means the purchaser of the Bonds
from the Issuer on the Closing Date.
"Private Business Use" means use directly in a trade or
business carried on by a natural person or in any activity carried
on by a person other than a natural person, excluding, however, use
by a governmental unit and use as a member of the general public.
"Private Activity Bond" means any bond or certificate
issued by a governmental entity the proceeds of which are used
directly or indirectly to pay for or finance private non-govern-
mental activities or facilities in a trade or business or a person
unrelated to the governmental entity.
"Pro4ect" means the construction and/or acquisition of
improvements described in Resolution of Intention No. 1078.
"Purchase Price," for the purpose of computation of the
Yield of the Bonds, as provided in the Code, means, in general, the
initial offering price to the public (not including bond houses and
brokers, or similar persons or organizations acting in the capacity
of underwriters or wholesalers) at which price a substantial amount
of the Bonds is sold or, if the Bonds are privately placed, the
price paid by the first buyer of the Bonds or the acquisition cost
of the first buyer. The term "Purchase Price," for the purpose of
computation of the Yield of Nonpurpose Investments, means the fair
market value of the Nonpurpose Investments on the date of use of
Gross Proceeds of the Bonds for acquisition thereof, or if later,
on the date such Investment Property becomes a Nonpurpose
Investment of the Bonds.
"Redemption Fund" means the fund established by the
Treasurer into which shall be placed any accrued interest for the
period from the Bond Date to the Closing Date and all sums received
from the collection of unpaid assessments and of the interest and
penalties thereon, all as provided in Section 10 hereof.
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"Redemption Premium" means three percent (3%) of the
principal amount of the Bonds. The Redemption Premium will be paid
on Bonds redeemed prior to maturity as stated in Section 13 hereof.
"Regulations" means temporary and permanent regulations
promulgated under Section 148 of the Code.
"Reserve Fund" means the fund established by the
Treasurer into which shall be placed a portion of the proceeds
received from the sale of the Bonds as provided in Section 11
hereof.
"Treasurer" means the Treasurer/Finance Director of the
city of Bakersfield.
"Underwriter" means Sutro & Company, Inc., San Francisco,
California.
"Yield" means, for purposes of Section 148 of the Code,
the amount of income from an investment expressed as a percentage
of the issue price (within the meaning of Sections 1273 and 1274 of
the Code).
SECTION 2. List of Unpaid Assessments. The assessments
now remaining unpaid are as shown on said list and are in the
aggregate amount of $4,028,000 and for a particular description of
the lots or parcels of land bearing the respective assessment
numbers set forth in said list, reference is hereby made to the
assessment and to the diagram recorded in the office of the
Director of Public Works of the City of Bakersfield after
confirmation thereof by the Council.
SECTION 3. Issuance of Bonds. Bonds, in the aggregate
principal amount of $4,028,000, shall be issued as hereinafter
provided upon the security of the unpaid assessments in accordance
with, under and pursuant to the provisions of Resolution of
Intention No. 1078 and the proceedings thereunder duly had and
taken. The Bonds shall be issued only in fully registered form in
the amount of the Bond Denomination or any integral multiple
thereof (except for one Bond due in 1992 which will include the
amount by which the principal amount of the issue exceeds the
largest integral multiple of $5,000.00 contained therein), and
shall mature in the amounts and on the dates and at the rates of
interest set forth in the purchase offer as approved by the Issuer.
The Bonds shall be numbered consecutively from 1 upward, and shall
be payable in numerical order, consecutively, commencing with the
lowest number within the maturity.
SECTION 4. Form of Bonds. The Bonds shall be substan-
tially in the form set forth in Exhibit "A."
Revised 5/30/91 -6-
SECTION 5. Payment of Bonds. The Bonds shall bear
interest at the rate or rates determined by the Council at the time
of sale of the Bonds (not to exceed twelve percent (12%) per annum,
or such higher rate of interest as may be authorized by applicable
law at the time of sale of the Bonds), payable on each Interest
Payment Date.
Each Bond shall bear interest from the Interest Payment
Date next preceding the date on which it is authenticated and
registered, unless authenticated and registered (1) prior to an
Interest Payment Date and after the close of business of the
fifteenth (15th) day of the month immediately preceding such
Interest Payment Date, in which event it shall bear interest from
such Interest Payment Date, or (ii) prior to the close of business
on the fifteenth (15th) day of the month preceding the first
Interest Payment Date, in which event it shall bear interest from
the Bond Date; provided, however, that if at the time of
authentication interest is in default, each Bond shall bear
interest from the date to which interest has been paid. Each Bond
will continue to bear interest after maturity at the rate stated
therein, provided it is presented at maturity and payment thereof
is refused on the sole ground that there is not sufficient money in
the Redemption Fund with which to pay same; if it is not presented
at maturity, interest thereon will run only until maturity.
SECTION 6. Execution. The Bonds shall be executed on
behalf of the Issuer and under its official seal by its Treasurer
and by the City Clerk, whose signatures shall be manually placed on
the Bonds or reproduced by engraved, printed or lithographed
facsimile thereof, and the official seal may be placed on the Bonds
in like manner; such signing and sealing shall constitute and be a
sufficient and binding execution of each and every one of the
Bonds. If said Bonds are executed under seal by facsimile, the
Bonds shall then be delivered to the Treasurer or the Agent for
authentication by the Treasurer or Agent.
If any officer whose signature appears on the Bonds
ceases to be such officer before the authentication and delivery of
the Bonds to the purchaser thereof, such signature shall be as
valid as if such officer had remained in office until the authen-
tication and delivery of the Bonds.
SECTION 7. Authentication. Only those Bonds which bear
thereon a certificate of authentication substantially in the form
below, manually executed by the Treasurer or the Agent, shall be
valid or obligatory for any purpose or entitled to the benefits of
this Resolution, For Bonds bearing a certificate of
authentication, and such certificate shall be conclusive evidence
that the Bonds so authenticated have been duly executed,
authenticated and delivered hereunder and are entitled to the
benefits of this Resolution. The certificate of authentication on
Revised 5/30/91 -7-
any Bond requiring authentication shall be deemed to be duly
executed if signed by an authorized officer or signatory of the
Treasurer or the Agent, but it shall not be necessary that the same
officer or signatory sign the certificate of authentication on all
the Bonds issued hereunder.
[FORM OF CERTIFICATE OF AUTHENTICATION AND REGISTRATION]
This is one of the Bonds described in the Resolution Determining
Unpaid Assessments and Providing for Issuance of Bonds referred to
herein.
[Name Of Authenticating Entity]
By
Authorized Representative
SECTION 8. Preparation and Delivery of Bonds. The
Treasurer is hereby directed to cause the Bonds to be prepared in
accordance with this Resolution and to authenticate and deliver the
Bonds to the purchaser thereof, upon receipt of the purchase price
therefor, and upon the performance of the conditions contained in
the accepted offer for the purchase of the Bonds.
SECTION 9. Improvement Fund. The Treasurer shall
establish the Improvement Fund designated by the name and/or number
of the improvement or assessment district into which shall be
placed the proceeds received from the sale of the Bonds, including
any premium (except that any interest accrued from the date of the
Bonds to the date of delivery thereof shall be placed in the
Redemption Fund provided for herein). All moneys in the
Improvement Fund shall be withdrawn only upon checks or warrants of
the Issuer and shall be applied exclusively to the payment of the
cost of the acquisitions and/or construction of the improvements
described in the proceedings under and pursuant to said Resolution
of Intention, as now or hereafter changed or modified by
appropriate legal proceedings, and all expenses incidental thereto.
Any surplus remaining after payment of all costs and all legal
charges, claims and expenses shall be used as set forth in said
proceedings.
SECTION 10. Redemption Fund. The Treasurer shall
establish the Redemption Fund designated by the name of the Bonds,
into which shall be placed any accrued interest for the period from
the Bond Date to the date of delivery thereof, funded interest to
the maximum permitted by law as of the Bond Date, and all sums
received from the collection of unpaid assessments provided for in
Section 12 hereof, and of the interest and penalties thereon. From
the Redemption Fund, disbursements shall be made to pay the
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principal or advance redemption price of the Bonds and the interest
due thereon.
SECTION 11. Reserve Fund. Upon placement of the
proceeds from the sale of the Bonds in the Improvement Fund, the
Treasurer shall forthwith transfer the sum of $402,800 from the
Improvement Fund into a Reserve Fund, which shall be designated by
the name and/or number of the improvement or assessment district.
The money in the Reserve Fund shall be administered by the
Treasurer in accordance with and pursuant to the provisions of Part
16 of the Act, provided that only proceeds from (1) investment of
moneys in the Reserve Fund and (2) redemption or sale of the
properties with respect to which payment of delinquent assessments
and interest thereon was paid from the Reserve Fund, shall be
credited to the Reserve Fund only to the extent that the amount
credited to the Reserve Fund will not result in the Bonds becoming
Arbitrage Bonds for the purposes of Section 148 of the Code and the
Regulations. To the extent that such proceeds, or any portion
thereof, would cause the Bonds to become Arbitrage Bonds if
credited to the Reserve Fund and invested in Higher Yielding
Investments, then such proceeds, or portion thereof, shall be
credited upon the assessments; provided only that in the event
crediting of any portion of such proceeds upon assessments not
theretofore paid in full in cash would result in moneys in the
Redemption Fund remaining therein for a period of more than 12
months, then any portion of such moneys which would otherwise
remain in the Redemption Fund for a period of more than 12 months
shall be used to call Bonds prior to their maturity date on the
earliest call date next succeeding the deposit thereof in the
Redemption Fund.
SECTION 12. Collection of Unpaid Assessments. The
unpaid assessments shown on the list, together with the interest
thereon, shall be payable in annual series corresponding in number
to the number of serial maturities of the Bonds issued. An annual
proportion of each unpaid assessment shall be payable in each year
preceding the date of maturity of each of the several series of
Bonds issued, sufficient to pay the Bonds when due, and such
proportion of each unpaid assessment coming due in any year,
together with the annual interest thereon, shall be payable in the
same manner and at the same time and in the same installments as
the general taxes on real property are payable, and become
delinquent at the same times and in the same proportionate amounts
and bear the same proportionate penalties and interest after
delinquency as do the general taxes on real property. All sums
received from the collection of the unpaid assessments and of the
interest and penalties thereon shall be placed in the Redemption
Fund.
Revised 5/30/91 --9--
SECTION 13. RedemPtion Prior to MaturitY. Each Bond, or
any portion thereof in the amount of the Bond Denomination or any
integral multiple thereof, outstanding may be redeemed and paid in
advance of maturity upon any Interest Payment Date in any year by
giving at least 30 days notice and by paying the principal amount
thereof together with the Redemption Premium plus interest to the
date of advanced maturity, unless sooner surrendered, in which
event said interest will be paid to the date of payment, all in the
manner and as provided in the Act.
The Treasurer shall cause to be called for redemption and
retire Bonds upon prepayment of assessments in amounts sufficient
therefor, or whenever sufficient surplus funds are available
therefor in the Redemption Fund. In selecting Bonds for
retirement, the lowest numbered Bonds of the various annual
maturities shall be chosen pro rata in a manner intended to disturb
as little as possible the relationship of unpaid assessments to
Bonds outstanding.
The provisions of Part 11.1 of the Act are applicable to
the advance payment of assessments and to the calling of the Bonds.
SECTION 14. Exchanqe of Bonds. Any Bond, upon surrender
thereof at the office of the Treasurer, together with an assignment
duly executed by the registered owner thereof or his attorney or
legal representative in such form as shall be satisfactory to the
Treasurer, may, at the option of such owner, be exchanged for an
aggregate principal amount of Bonds equal to the principal amount
of the Bond so surrendered, and of any authorized denomination or
denominations. The Issuer shall make provision for the exchange of
Bonds at the office of the Treasurer.
SECTION 15. Negotiabilitv. Reqistration and Transfer of
Bonds. The Treasurer or Agent shall keep books for the
registration, and for the registration of transfers, of the Bonds
as provided in this Resolution, which shall at all times be open to
inspection by the Issuer. The transfer of any Bond may be
registered only upon such books upon surrender thereof to the
Treasurer or Agent together with an assignment duly executed by the
owner or his attorney or legal representative in such form as shall
be satisfactory to the Treasurer or Agent. Upon any such
registration of transfer, the Issuer shall execute and the
Treasurer or Agent shall authenticate and deliver in exchange for
such Bond a new Bond or Bonds registered in the name of the
transferee, of any denomination or denominations authorized by this
Resolution, and in an aggregate principal amount equal to the
principal amount of such Bond or Bonds so surrendered.
In all cases in which Bonds shall be exchanged, the
Issuer shall execute and the Treasurer or Agent shall authenticate
and deliver at the earliest practicable time Bonds in accordance
Revised 5/30/91 -10--
with the provisions of this Resolution. All Bonds surrendered in
any such exchange or registration of transfer shall forthwith be
canceled by the Treasurer or Agent. The Issuer may make a charge
for every such exchange or registration of transfer of Bonds suffi-
cient to reimburse it for any tax or other governmental charge
required to be paid with respect to such exchange or registration
of transfer, but no other charge shall be made to any owner for the
privilege of exchanging or registering the transfer of Bonds under
the provisions of this Resolution. The Issuer shall not be
required to make such exchange or registration of transfer of Bonds
during the period from the 15th day of the month immediately
preceding any Interest Payment Date and such Interest Payment Date.
SECTION 16. Ownership of Bonds. The person in whose
name any Bond shall be registered shall be deemed and regarded as
the absolute owner thereof for all purposes and payment of or on
account of the principal, and redemption premium, if any, of any
such Bond, and the interest on any such Bond, shall be made only to
or upon the order of the registered owner thereof or such owner's
legal representative. All such payments shall be valid and
effectual to satisfy and discharge the liability upon such Bond,
including the redemption premium, if any, and interest thereon to
the extent of the sum or sums so paid.
SECTION 17. Limited Obligation. Pursuant to Section
8769 of the Street and Highways Code of the State of California,
the Issuer has determined that the Issuer will not obligate itself
to advance available funds from the City treasury to cure any
deficiency which may occur in the Redemption Fund. Such
determination shall not prevent the Issuer from, in the Issuer's
sole discretion, so advancing funds.
SECTION 18. Covenant to Foreclose. The Issuer hereby
covenants with and for the benefit of the owners of the Bonds that
it will order, and cause to be commenced within 150 days following
the date of delinquency, and thereafter diligently prosecuted, an
action in the superior court to foreclose the lien of any
assessment or installment thereof not paid when due, pursuant to
and as provided in Sections 8830 through 8835, inclusive, of the
Streets and Highways Code of the State of California, provided that
the alternative method of tax apportionment (Sections 4701 through
4717 of the California Revenue and Taxation Code) is no longer
applied by the County of Kern to special assessments, for which
bonds have been issued pursuant to the Act, for any reason
whatsoever.
SECTION 19. Investment of Funds. Moneys in the
Improvement Fund, Redemption Fund, and the Reserve Fund shall,
whenever practicable, be invested in legal investments for the
Issuer under applicable law for the moneys held pursuant to this
Resolution at the time when any of such moneys are to be invested
Revised 5/30/91 -11-
therein. Any income therefrom or interest thereon shall accrue to
and be deposited in the fund from which said moneys were invested,
except as otherwise provided in Section 23 hereof.
(a) Nonpurpose Investments. Except to the extent that the
limitations on Nonpurpose Investments are avoided by
qualifying the investments under the "temporary period" rules,
the Treasurer shall adhere to the following limitations and
requirements for Nonpurpose Investments to avoid treatment of
the Bonds as Arbitrage Bonds and the loss of the interest
exclusion from federal income tax.
(1) At no time during any Bond Year may the amount
invested in Nonpurpose Investments with a yield
materially higher than the yield on the Bonds exceed 150
percent of the "debt service" on the Bond for the Bond
Year, and
(2) the aggregate amount invested as provided in (i)
above shall be promptly and appropriately reduced as the
amount of outstanding Bonds is reduced.
(b) Temporary Period Investments. Proceeds of the issue may
be invested in Higher Yielding Investments for a temporary
period until such proceeds are needed for the purpose for
which the Bonds were issued and/or for temporary investment
periods related to debt service. Until the Treasurer is
otherwise advised, the temporary period for purposes of the
Bonds shall be two years.
In addition to the foregoing general instructions, the
Treasurer shall adhere to the following guidelines with
respect to the Redemption Fund (debt service fund) and the
Improvement Fund (purpose for which the Bonds were issued):
(1) proceeds derived from the sale of the Bonds and
deposited in the Redemption Fund are considered a "debt
service fund." If the gross earnings on a bona fide debt
service fund are less than $100,000 in the Bond Year,
then such earnings are not to be taken into account in
determining the aggregate amount earned on Nonpurpose
Investments for purposes of determining the rebate amount
under Section 23;
(2) proceeds derived from the sale of the Bonds
deposited in the Improvement Fund to be expended to pay
costs of construction of the Improvements, and all
expenses incident thereto, are entitled to a temporary
period extending until such proceeds are expended within
the time limits of subsection (b) of this Section 19 for
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construction of such improvements and, therefore, such
proceeds may be invested in Higher Yielding Investments;
(3) the Issuer will review all investments within five
(5) months after the date which the Bonds are issued and
determine which of the Nonpurpose Investments rely on the
temporary period investment exception and within six (6)
months after which the Bonds are issued reinvest all such
investments in Government Bonds or 501(c) (3) bonds which
are excluded from the definition of Nonpurpose
Investments.
(4) amounts deposited in the Reserve Fund have no
temporary period (but see subparagraph (c) below for
special rule).
(c) Minor Portion Exception. Notwithstanding Paragraphs (a)
through (b) above, the Bonds will not be treated as Arbitrage
Bonds if in addition to the amounts excepted under the
"temporary period" exception (Paragraph (b) above), an amount
is invested in Higher Yielding Investments which does not
exceed the lesser of $100,000 or five percent of the proceeds
of the issue.
(d) Restricted Investments. Gross Proceeds, other than
amounts eligible for a temporary period as described in
Paragraph (b) or the exception for minor portions in Paragraph
(c), shall be invested in obligations the interest on which is
excluded from gross income for federal income tax purposes
under Section 103(a) of the Code, or in Nonpurpose Investments
at a composite yield not in excess of the yield on the Bonds
(in the case of Nonpurpose Investments acquired with Gross
Proceeds derived from the sale of the Bonds and investment
earnings thereon, the yield on the Bonds plus 1/8 of one
percent).
SECTION 20. No Arbitraqe or Hedge Bonds.
(a) No Arbitraqe. The Issuer shall not, except as permitted
by law, use any portion of the proceeds from the issuance of
the Bonds, directly or indirectly (1) to acquire Higher
Yielding Investments, (2) to replace funds which were used
directly or indirectly to acquire Higher Yielding Investments,
and will (3) rebate to the Federal Government all arbitrage
profits, (4) comply with limitations on the amount of bond
proceeds that may be invested in non-purpose obligations and
(5) comply with all of the other provisions of Section 148 of
the Code in order to avoid treatment of the Bonds as Arbitrage
Bonds subject to federal income taxation by reason of Code
Section 103(b).
Revised 5/30/91 --13--
(b) No Hedge Bonds. The Issuer reasonably expects to spend
eighty-five percent (85%) of the "spendable proceeds" of the
Issue (the "Spendable Proceeds") within the three (3) year
period beginning on the issue date of the obligations. For
these purposes, the "Spendable Proceeds" are sale proceeds of
the obligations less proceeds used for costs of issuance,
reasonably required reserve or replacement funds and debt
service. If the bonds are classified as hedge bonds, the
Issuer shall comply with all requirements for maintaining the
tax exempt status of the Bonds pursuant to Code Section
149(g).
SECTION 21. Certificate as to Non-Arbitra~e or Hedge
Bonds. On the basis of the facts, estimates and circumstances now
in existence and in existence on the date of issue of the Bonds, as
determined by the Treasurer, the Treasurer is authorized and
directed to certify that it is not expected that the proceeds of
said issue will be used in a manner that would cause such
obligations to be arbitrage or hedge bonds. Such certification
shall be delivered to the purchaser of the Bonds at the time of
delivery of and payment for the Bonds.
SECTION 22. Yield.
(a) Calculation of Yield. Yields shall be calculated by
means of an actuarial method of yield calculation whereby the
term "yield" means that discount rate which when used in
computing the present worth of all payments of principal and
interest to be paid on the obligation produces an amount equal
to the purchase price of the obligation. The yield on
investments must be computed by the use of the same frequency
interval of compounding interest on the Bonds. For purposes
of the Bonds, yield is the stated return on the issue price of
the Bonds, which is defined in Section 1273 of the Code as the
initial offering price to the public (not including bond
houses, brokers and similar persons acting in the capacity of
underwriters or wholesalers) at which a substantial amount of
each maturity of the Bonds was sold. For purposes of
calculating the yield on Nonpurpose Investments, the purchase
price will be the amount paid for such investments or, if
different, the fair market value of such investment on the
date it becomes Gross Proceeds.
(b) Market Price. For purposes of the calculation of the
yield on any investment as required under this resolution, the
purchase price of the investment will be the fair market price
of the investment on an established market. This means that
the Treasurer will not pay a premium and will not accept a
lower interest rate than is usually paid to adjust the yield
on an investment.
Revised 5/30/91 -14--
(1) The market price of certificates of deposit issued
by a commercial bank shall be regarded as being at a fair
market price if it is determined by reference to the bona
fide bid price quoted by a dealer who maintains an active
secondary market in such certificates, or, if no
secondary market exists, by satisfying subparagraph (2)
below relating to investment agreements.
(2) Investments pursuant to an investment agreement may
be regarded as being made at a fair market price if (i)
at least 3 bids are received on the investment contract
from persons without an interest in the Bonds; (ii) the
winning bidder provides a certificate that, based on its
reasonable expectations on the date the contract is
entered into, investments will not be purchased or sold
at a price other than their fair market value; (iii) the
yield on the investment contract is at least equal to the
yield offered under the highest bid received from a
noninterested party; and (iv) the yield on the investment
contract is at least equal to the yield offered on
similar contracts.
(3) For other investments traded on an established
market, the fair market value shall be the mean between
the bid and offered prices for such investments on the
date of purchase or, if subsequent, the date the
investment becomes a Nonpurpose Investment.
(4) Where funds are restricted to a certain yield and
investments cannot be purchased on an established market
or a bona fide fair market price cannot be established at
a yield that does not exceed the maximum permissible
yield, the Treasurer shall acquire or hold tax-exempt
securities, currency, or United States Treasury
Certificates of Indebtedness, Notes and Certificates --
State and Local Government Series ("SLGs") which yield no
more than the maximum permissible yield. Since under
current Treasury Department Regulations governing SLGs,
such investments may not be purchased until 15 calendar
days (three business days in the case of demand deposit
SLGs) after a subscription for them is tendered and
received by a Federal Reserve Bank or Branch, the
Treasurer shall act promptly in subscribing for SLGs in
the event he determines such restricted investments are
necessary.
(5) The Treasurer is instructed to maintain records for
each such obligation sufficient to establish that its
purchase price is the fair market value as determined
under the rules set forth above.
Revised 5/30/91 -15-
(c) Yield Calculation for Variable Rate Obligation. For the
purpose of Section 23 hereof, the yield on a Nonpurpose
Investment that consists of variable rate Investment Property
shall be determined as of the date the Nonpurpose Investment
is acquired and as of the first day of each Bond Year by
assuming that the rate of interest will be weighted average
rate of interest for such Investment Property during the pre-
ceding one-year period (or portion thereof in which the
Nonpurpose Investment was outstanding). With respect to a
Nonpurpose Investment purchased on its date of issue, the
yield for the first Bond Year shall be determined by assuming
that the rate of interest will be the initial rate of interest
for such Nonpurpose Investment as determined under the
prescribed formula on such date of issue (without regard to
any fixed rate initially applicable to such Nonpurpose
Investment).
SECTION 23. Rebate Requirement.
(a) Rebate Fund and Statement. Notwithstanding any
unrestricted investment for a temporary period, it is required
that an amount equal to the sum of (i) the excess of the
aggregate amount earned on all Nonpurpose Investments over the
amount that would have been earned if such Nonpurpose Invest-
ments had a yield equal to the yield on the Bonds plus (ii)
any income attributable to the excess described in (i), be
paid to the United States Treasury (the "Rebate Requirement").
The Treasurer shall comply with all of the requirements of
Section 148 of the Code, and shall specifically comply with
the Rebate Requirement of the Code by establishing a Rebate
Fund as a separate and distinct account and fund in accordance
with the procedures set forth in this Section.
The Treasurer shall fulfill his obligation under this Section
by preparing within 25 days after the close of each Rebate
Year and within 45 days after retirement of the last
obligation in the issue, a statement setting forth the Rebate
Amount (as defined below in this Section) and the Aggregate
RebateAmount (as defined below in this Section) as of the end
of such Rebate Year, in any form or statement prescribed
therefor by the Internal Revenue Service or the United States
Treasury to the extent such former statement is available and
required to be used. For purpose of this Section, the term
"Rebate Year" shall be the same as Bond Year.
(b) Nonpurpose Investments. With respect to Nonpurpose
Investments acquired in any fund or account established and
held by the Treasurer, the Treasurer shall record or cause to
be recorded the following information: (i) purchase date,
(ii) purchase price, (iii) information establishing that the
purchase price is the fair market value as of such date (e.g.,
Revised 5/30/91 -~6-
the published quoted bid by a dealer in such an investment on
the date of purchase, which information may be provided by the
Issuer), (iv) any accrued interest paid, (v) face amount, (vi)
coupon rate, (vii) periodicity of interest payments, (viii)
disposition price, (ix) any accrued interest received, (x)
disposition date. To the extent any investment becomes a
Nonpurpose Investment by becoming Gross Proceeds after it has
originally purchased, it shall be treated as if it were
acquired at its fair market value at the time it becomes a
Nonpurpose Investment so that gain or loss on the disposition
of such investment shall he computed with reference to such
fair market value as its adjusted basis.
(c) Determination of Earninqs Received. The last day of each
Rebate Year and the date on which the Certificates are prepaid
or mature shall constitute a "Determination Date." Within 25
days after each Determination Date, the Treasurer shall
determine or cause to be determined the amount of earnings
received during the period beginning on the Closing Date, and
ending with the Determination Date with respect to each
investment described in Paragraph (b) of this Section. In
calculating the amount of such earnings, all income realized
under federal income tax accounting principles with respect to
such obligation and with respect to the reinvestment of
investment receipts from such obligations shall be included.
Specifically, the Treasurer shall take into account (i) the
purchase price of each investment, (ii) any discount or
premium on the purchase price on the Nonpurpose Investment
amortized over the period from its date of purchase, or if
different, the date on which it becomes Gross Proceeds, to its
date of scheduled maturity in accordance with the method of
amortization of the discount applicable under federal income
tax law, and (iii) any gain or loss on the date of disposition
of any investment, determined by subtracting from the
disposition price of the investment, the purchase price
thereof or, if applicable, the fair market value thereof on
the date it became Gross Proceeds. The Treasurer may not take
into account any transaction costs incurred in acquiring,
carrying, selling or redeeming such obligations.
(d) Deduction Computation for Yield on Bonds. Within 25 days
after each Determination Date, the Treasurer shall calculate
the hypothetical amount of earnings, based upon the respective
purchase prices of the Nonpurpose Investments, that would have
been earned with respect to each Nonpurpose Investment during
the period commencing with the date of issue and ending with
such Determination Date if the annual yield on such Nonpurpose
Investment had been equal to the yield on the Bonds. The
hypothetical amount determined hereunder will, where
applicable, be based on corresponding and contemporaneous
reductions in the amounts invested in Nonpurpose Investments.
Revised 5/30/91 -17-
The purpose of the calculations under this paragraph is to
determine the amount that would have been earned on all
Nonpurpose Investments if the composite yield on all such
Nonpurpose Investments had been equal to the composite yield
on the Bonds for the period beginning on the date of issue and
ending on the Determination Date.
(e) Calculation of Rebate Amount. Within 25 days after each
Determination Date, the Treasurer shall calculate the net
amount equal to the sum of all amounts determined in Paragraph
(c) of this Section on each Determination Date, less the sum
of all amount determined in Paragraph (d) of this Section on
the most recent Determination Date. Such excess, if any,
shall be the "Rebate Amount." The Rebate Amount in no case
shall be less than zero.
(f) A~re~ate Rebate Amount. Within 25 days after each
Determination Date, the Treasurer shall determine the
"Aggregate Rebate Amount." The Aggregate Rebate Amount as of
the first Determination Date shall be the Rebate Amount. The
Aggregate Rebate Amount as of the second Determination Date
and subsequent Determination Dates shall be the Rebate Amount
as of the then current Determination Date (i) reduced, but not
below zero, by the amount of any payments made to the United
States Treasury as described in Paragraph (i) of this Section,
and (ii) increased by the amount of earnings on all Aggregate
Rebate Amounts during the Rebate Year or any prior Rebate Year
which were not previously rebated to the United States
Treasury.
(g) EarninGs on Debt Service Fund. Any amount earned on the
Redemption Fund and amounts earned on such amount, if
allocated to the Redemption Fund, shall not be taken into
account for purposes of determining the amounts described in
Paragraphs (c), (d), (e), and (f) of this Section if the gross
earnings on the Redemption Fund are less than $100,000 for the
Rebate Year.
(h) EarninGs on Aggregate Rebate Amounts. The amount of
earnings on the Aggregate Rebate Amount includes all income
attributable to the excess described in Paragraph (f) of this
Section, whether or not that income exceeds the yield on the
Bonds, and neither the amount of such earnings nor the
hypothetical amount of earnings on the Nonpurpose Investments
producing the actual earnings shall be taken into account in
the calculation of the Rebate Amount. The Treasurer shall
determine the amount of such earnings as of each Determination
Date by treating the Aggregate Rebate Amount to that date as
being invested in cash or a specified investment (but only to
the extent such cash or specified investment is actually
held). To the extent there are no investments or cash
Revised 5/30/91 -18-
allocable to theAggregate RebateAmount, the Aggregate Rebate
Amount shall be deemed to have been invested at the Bond yield
for purposes of determining the succeeding Aggregate Rebate
Amount.
(i) Due Date of Payments. Unless otherwise provided by the
Secretary of the United States Treasury, all Rebate Amounts
shall be paid to the United States Treasury in installments
made at least once every five years. The first payment shall
be made not later than 30 days after the end of the fifth
Rebate Year after the date of execution and delivery of the
Bonds; each subsequent payment must be made not later than
five years after the preceding payment was due. Each payment
must be in an amount not less than 90 percent of the Aggregate
Rebate Amount as of the close of the last Bond Year prior to
payment, less all amounts previously paid to the United States
Treasury. All of the Aggregate Rebate Amount must be paid to
the United States Treasury within 60 days after the retirement
of the last Bond. No deduction shall be allowed for any
amount paid to the United States Treasury.
(j) Penalty in Lieu of Loss of Tax Exemption. In the event
that all of the foregoing requirements regarding payment of
rebate amounts have not been complied with, and/or the
Treasurer has failed to comply with applicable provisions of
the Code and regulations adopted thereunder related to rebate
amounts, the Treasurer shall submit the additional amounts due
to the Secretary of the United States Treasury together with
a request for a waiver of all or any portion of the 50 percent
penalty provided for in Section 148(f)(7) (C) of the Code and
a request that the Secretary treat the Bonds as not failing to
meet such requirements. The Treasurer shall pay such penalty
if required as a condition to the Secretary's treatment of the
Bonds as not failing to meet said requirements.
SECTION 24. Private Activity and Private Loan
Prohibitions.
(a) Private Activity Prohibition. The Issuer shall assure
that (i) not in excess of 10 percent of the Net Proceeds of
the Bonds are used for a Private Business Use if, in addition,
the payment of more than 10 percent of the principal or 10
percent of the interest due on the Bonds during the term
thereof is, under the terms of the Bonds or any underlying
arrangement, directly or indirectly, secured by any interest
in property used or to be used for a Private Business Use or
in payments in respect of property used or to be used for a
Private Business Use or is to be derived from payments,
whether or not to the Issuer, in respect of property or
borrowed money used or to be used for a Private Business Use;
and (ii) and that, in the event that both (A) in excess of
Revised 5/30/91 -19-
five percent of the Net Proceeds of the Bonds are used for a
Private Business Use, and (B) an amount in excess of five
percent of the principal or five percent of the interest due
on the Bonds during the term thereof is, under the terms of
the Bonds or any underlying arrangement, directly or
indirectly, secured by any interest in property used or to be
used for said Private Business Use or in payments in respect
of property used or to be used for said Private Business Use
or is to be derived from payments, whether or not to the
Issuer, in respect of property or borrowed money used or to be
used for said Private Business Use, then said excess over said
five percent of Net Proceeds of the Bonds used for a Private
Business Use shall be used for a Private Business Use related
to the governmental use of the Project.
(b) Private Loan Prohibition. The Issuer shall assure that
not in excess of five percent of the Net Proceeds of the Bonds
is used, directly or indirectly, to make or finance loans
(other than loans constituting Nonpurpose Investments or
assessments) to persons other than governmental units.
(c) Disbursement Statement. Upon each disbursement of Net
Proceeds of the Bonds deposited in the Improvement Fund, the
Treasurer shall prepare and execute a statement setting forth
the portion, if any, of the Net Proceeds of the Bonds to be
used for a Private Business Use or to make or finance a
private loan (other than a loan constituting a Nonpurpose
Investment or an assessment) and certifying that there has
been compliance with subsections (a) and (b) above. Such
statements shall be maintained as a part of the permanent
business records of the Issuer pertaining to the Bonds.
SECTION 25. No Federal Guarantee. The Issuer shall take
no action nor permit nor suffer any action to be taken if the
result of the same would cause the Bonds to be a federally
guaranteed obligation within the meaning of Section 149(b) of the
Code. Any section reference in this Resolution to the Code shall
be deemed to be and shall refer to any section of similar import
enacted in lieu or in amendment of such section or contained in any
Internal Revenue Code enacted in lieu of the Internal Revenue Code
of 1986, as amended.
SECTION 26. Amendment. Without the consent of the Bond
holders, the Issuer hereafter may amend this Resolution to add,
modify or delete provisions if the same is necessary or desirable,
in the opinion of the Bond Counsel of the Issuer, to assure the
exemption of interest on the Bonds from federal income taxation,
provided that the security interest of the Bond holders is not
affected thereby.
Revised 5/30/91 --20--
SECTION 27. Authority of Treasurer. All actions
mandated by this Resolution to be performed by the Treasurer may be
performed by the designee thereof or such other official of the
Issuer or independent contractor, contractor or trustee duly
authorized by the Treasurer to perform such action or actions in
furtherance of all or a specific portion of the requirements
hereof.
SECTION 28. Sale of Bonds. The Treasurer is hereby
authorized to negotiate or cause to be negotiated the sale of the
Bonds.
SECTION 29. Official Statement. The Council hereby
approves the preliminary Official Statement describing the Bonds,
in substantially the form submitted herewith by the Underwriter.
Distribution of the preliminary Official Statement by the
Underwriter is hereby approved. The Council hereby authorizes the
distribution of the final Official Statement by the Underwriter.
The Treasurer, upon consultation with Bond Counsel, is hereby
authorized and directed to approve any changes or additions from
the preliminary Official Statement to final official Statement.
The Treasurer, or his authorized representative, shall execute the
final Official Statement on behalf of the Issuer and such execution
shall be conclusive evidence of the Council's approval of any
changes from and additions to the preliminary Official Statement.
SECTION 30. Leqal Opinion. The Issuer will furnish the
legal opinion of Richard H. Hargrove of Jackson, Hargrove, Hillison
& Emerich approving the legality of the proceedings and the
issuance of the Bonds.
SECTION 31. Appointment of Aqent. Bank of America
National Trust & Savings Association, Los Angeles, California, is
hereby appointed as the transfer agent, registrar and paying agent
for the Bonds. If Bank of America is, for any reason, unable or
unwilling to serve as Agent or resigns or is removed as Agent, the
Treasurer is authorized and directed to appoint another qualified
financial institution to serve as Agent.
SECTION 32. Certified CoDies. The City Clerk shall
furnish a certified copy of this Resolution to the Treasurer, the
Agent, and to the Auditor of the County of Kern.
SECTION 33. Amendment to Resolution of Intention No.
1078. Subparagraph "d" is hereby added to Section 20 of the
Resolution of Intention No. 1078, regarding disposition of surplus
improvment funds. Subparagraph shall read as follows:
Revised 5/30/91 --2~--
d. To call bonds, thereby reducing outstanding
assessments and subsequent assessment installments.
In the event that the legislative body determines
to use all or some portion of the surplus to call
bonds prior to maturity, the Treasurer shall do
each of the following:
(1)
Cause the Reserve Fund to be reduced as
necessary to assure that the Bonds will
not become subject to federal income
taxation.
(2)
Cause any assessment previously paid in
cash to receive a credit in cash pursuant
to subdivision (d) of Section 10427.1 of
the Act for the proportionate share of
the surplus as determined pursuant to
subdivision (a) of Section 10427.1.
(3)
Cause the preparation of new auditor's
records to reflect the adjusted principal
amount of remaining assessment. All
subsequent assessment installments shall
be based upon the adjusted principal
amount of the assessment as reflected in
the revised auditor's record.
///
///
///
///
Revised 5/30/91 -22-
I HEREBY CERTIFY that the foregoing Resolution was passed
and adopted by the City Council of the City of Bakersfield at a
regular meeting thereof held on the 5th day of June, 1991,
by the following vote:
Peterson, Edwards, DeMond, Smith
AYES: COUNCILMEMBERS: Brunni, McDermott
NOES: COUNCILMEMBERS: None
ABSENT:
COUNCILMEMBERS: Salvaggio
ABSTENTIONS:
COUNCILMEMBERS:
None
City Clerk and Ex Officio
Clerk of the Council of the
City of Bakersfield
APPROVED this 5th day of June, 1991.
MAYOR of the City of Bakersfield
COUNTERSIGNED:
of
/ City ~oi~a~ersfield
APPROVED AS TO FORM:
Richard Hargrove~
BOND COUNSEL
APPROVED AS TO FORM:
CITY ATTORNE~r~of~t=h~
City of Bakersfield
700370DA.R6A
Revised 5/30/91 -23-
UNITED 8TATES OF AMERICA
STATE OF CALIFORNIA
COUNTY OF KERN
NUMBER $
CITY OF BAKERSFIELD ~2~SESSMENT DISTRICT NO.
LIMITED OBLX~TION XMPROVEMENT BOND
INTEREST RATE
MATURITY DATE
90-1
BOND DATE CUSIP
REGISTERED OWNER:
PRINCIPAL AMOUNT:
Under and by virtue of the Improvement Bond Act of 1915,
Division 10 of the California Streets and Highways Code (the
"Act"), the City of Bakersfield, California, (the "City"), will,
out of the Redemption Fund on the maturity date specified above for
the payment of the Bonds issued upon the unpaid portion of
assessments made for the acquisitions, work, and improvements more
fully described in proceedings taken pursuant to Resolution of
Intention No. 1078, adopted by the City Council of the City on
March 27, 1991, pay to the registered owner hereof, or registered
assigns, on the maturity date stated above, the principal sum shown
hereon in lawful money of the United States and in like manner pay
interest at the rate per annum stated above, payable semiannually
on March 2 and September 2 in each year commencing September 2,
1991. This Bond bears interest from the interest payment date next
preceding its date of authentication and registration unless it is
authenticated and registered (1) prior to an interest payment date
and after the close of business of the fifteenth (15th) day of the
month immediately preceding such interest payment date, in which
event it shall bear interest from such interest payment date, or
(ii) prior to the close of business on the fifteenth (15th) day of
the month immediately preceding September 2, 1991, in which event
it shall bear interest from its date, until payment of such
principal sum shall have been discharged. Both the principal
hereof and redemption premium hereon are payable upon presentation
and surrender hereof at the principal corporate trust office of
Bank of America, San Francisco, California, or its successors, as
Transfer Agent, Registrar and Paying Agent (the "Agent"), and the
interest hereon is payable by check or draft mailed to the owner
hereof at such owner's address as it appears on the registration
books of the Agent, or at such address as may have been filed with
EXHIBIT "A"
Revised 5/30/91 A - 1
the Agent for that purpose, as of the fifteenth (15th) day of the
month immediately preceding each interest payment date.
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF
THIS BOND SET FORTH ON 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 that 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 hereon will run
only until maturity.
This Bond shall not be entitled to any benefit under the
Act or the Resolution entitled "A Resolution Determining Unpaid
Assessments and Providing for Issuance of Bonds", adopted by the
City Council of the City on June 5, 1991, (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 Treasurer or the Agent.
IN WITNESS WHEREOF, the City of Bakersfield has caused
the Bond to be signed in facsimile by the Treasurer of said City
and by its City Clerk and has caused its corporate seal to be
reproduced in facsimile hereon all as of , 1991.
CITY OF BAKERSFIELD, CALIFORNIA
City Clerk
Treasurer
CERTIFICATE OF AUTHENTICATION AND REGISTRATION
This is one of the Bonds described in the within
mentioned Resolution of Issuance, which has been registered on
as Transfer Agent, Registrar
and Paying Agent
Authorized Officer
EXHIBIT "A"
Revised 5/30/9! A - 2
[TEXT ON RESERVE SIDE OF BOND]
CITY OF BAKERSFIELD ASSESSMENT DISTRICT NO. 90-1
LIMITED OBLIGATION IMPROVEMENT BONDS
This 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 said City under the Act, the Code and
the Resolution of Issuance in the aggregate principal amount of
$ for the purpose of providing means for paying for
the improvements and acquisitions 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
improvements and acquisitions, and, including principal and
interest, is payable exclusively out of said Redemption 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 Agent, 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, and
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.
Neither the City nor the Agent shall be required to make
such exchange or registration of transfer of Bonds between the
fifteenth (15th) day of the month immediately any March 2 or
September 2 and such March 2 or September 2.
The City and the Agent may treat the owner hereof as the
absolute owner for all purposes, and the City and the Agent shall
not be affected by any notice to the contrary.
This Bond, or any portion of it in the amount of Five
Thousand Dollars ($5,000.00) or any integral multiple thereof, may
be redeemed and paid in advance of maturity upon the 2nd day of
March or September in any year by giving at least thirty (30) days'
notice by registered mail to the registered owner hereof at such
owner's address as it appears on the registration books of the
Agent and by paying principal and accrued interest together with a
premium equal to three percent of the principal.
EXHIBIT "A"
Revised 5/30/91 A - 3
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.
LEGAL OPINION
I hereby certify that the following is a correct copy of
the signed legal opinion of Jackson, Hargrove, Hillison & Emerich,
Attorneys at Law, Fresno, California, Bond Counsel, addressed to
the City of Bakersfield and on file in my office, dated the date of
delivery of and payment for the Bonds therein described.
City Clerk
[Insert Legal Opinion]
ASSIGNMENT
For value received, the undersigned do(es) hereby sell,
assign and transfer unto
the within-mentioned Bond and hereby irrevocably constitute(s) and
appoint(s)
attorney, to transfer the
same on the books kept for registration hereof with full power of
substitution in the premises.
Dated:
NOTICE: The signature to this
assignment must correspond with the
name as it appears upon the face of
the within Bond in every particular,
without alteration or enlargement or
any change whatsoever.
700370DA.R6A
Revised 5/30/91
EXHIBIT "A"
A - 4