HomeMy WebLinkAbout1986 080 CC RESO1986 080 CC RESO ;¢fì ø ~! RESOLUTION NO. 86-80
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF BALDWIN PARK AUTHORIZING THE
ISSUANCE AND SALE OF IMPROVEMENT BONDS IN
THE AGGREGATE PRINCIPAL AMOUNT OF
$1,625,000 IN CONNECTION WITH ITS DELTA
ASSESSMENT DISTRICT NO. 86-2
DATED AUGUST 27, 1986
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1986 080 CC RESO ;¢fì ø ~! TABLE OF CONTENTS
PAGE
Section 1. a) Definitions.......................... 3
b) Rules of Interpretation.............. 6
Section 2. Amount/ Issuance and Purpose of Bonds.... 6
Section 3. Terms of Bonds; Temporary Bonds.......... 7
Section 4. Interest................................. 8
Section 5. Proceedings of the City.................. 8
Section 6. Unpaid Assessments....................... 8
Section 7. Execution; Authentication; and
Mutilated/ Lost, Stolen or
Destroyed Bonds.......................... 9
Section 8. Manner and Place of Payment.............. 10
Section 9. Registration and Exchange................ 10
Section 10. Redemption in Advance of Maturity........ 11
Section 11. Funds Established........................ 13
Section 12. Use of Bond Proceeds..................... 13
Section 13. Redemption Fund.......................... 14
Section 14. Reserve Fund............................. 15
Section 15. Costs of Issuance Fund................... 16
Section 16. Improvement Fund......................... 16
Section 17. Foreclosure of Lien...................... 16
Section 18. Unpaid Assessments as Trust Fund......... 17
Section 19. Reassessment............................. 17
Section 20. Incontestability......................... 17
Section 21. Contract with Bondholders............... 17
Section 22. Cessation of City Obligations........... 18
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1986 080 CC RESO ;¢fì ø ~! Section 23. Partial Invalidity........................ 18
Section 24. Liberal Construction...................... 18
Section 25. No Arbitrage.............................. 19
Section 26. Authority to Consummate Transaction....... 19
Section 27. Fiscal Agent.............................. 19
Section 28. Limited Liability. 20
Section 29. Amendment of Resolution................... 21
Section 30. Payments Due on Sundays and Holidays...... 22
Section 31. Captions and Headings..................... 22
Section 32. Ratification of Proceedings............... 22
Section 33. Effective Date............................ 22
EXHIBIT A. Maturity Schedule
EXHIBIT B. Form o'f Bond
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1986 080 CC RESO ;¢fì ø ~! RESOLUTION NO. 86-80
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF1 BALDWIN PARK AUTHORIZING THE
ISSUANCE AND SALE OF IMPROVEMENT BONDS IN
THE AGGREGATE PRINCIPAL AMOUNT OF
$1,625,000 IN CONNECTION WITH ITS DELTA
ASSESSMENT DISTRICT NO. 86-2
WHEREAS, in accordance with provisions of the
California Streets and Highways Code the Code"),
particularly Section 2804 and Section 10,000, e_t seq.
owners of real property proposed to be subject to assessment
for the acquisition of certain public improvements,
hereafter described, have signed and filed with the City a
written petition the Petition") requesting formation of an
assessment district to be taken by the City in accordance
with and pursuant to the Municipal Improvement Act of 1913
the 1913 Act") and for the issuance of'improvement bonds
pursuant to the Improvement Bond Act of 1915 the 1915
Act"); and
WHEREAS, the owners of such property by virtue of
certain provisions contained in the Petition, have thereby
waived all proceedings otherwise required by Division 4 of
the Code, commencing with Section 2800 thereof, being the
Special Assessment Investigation, Limitation and Majority
Protest Act of 1931, and have thereby waived any and all
notice requirements otherwise required relating to the
requested assessment district proceeding; and
WHEREAS, on August 6, 1986, the City Council the
City Council") of the City of Baldwin Park, California the
City"), duly adopted Resolution No. 86-58, finding, inter
alia, that the Petition is in proper form and that the
public interest requires the formation of the requested
district, accepting the Petition and ordering City staff to
commence proceedings to form the requested district to be
designated Delta Assessment District No. 86-2" the
District"); and
WHEREAS, on August 6, 1986, the City Council duly
adopted Resolution No. 86-59, appointing J. Richard Smith as
Superintendent of Streets, and thereby authorizing and
directing such person to perform the duties and
responsibilities of the Superintendent of Streets pursuant
to the 1913 Act; and
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1986 080 CC RESO ;¢fì ø ~! WHEREAS/ on August 6, 1986, the City Council duly
adopted Resolution No. 86-60, appointing Dwight F. French/
Inc. as Engineer of Work the Engineer of Work") for all
purposes related to the District and designating and
appointing a Financial Consultant and Special Counsel with
respect to the formation of the District and the issuance of
improvement bonds in connection therewith; and
WHEREAS, the Engineer of Work has prepared a map
the Map"), designated Proposed Boundaries of Delta
Assessment District No. 86-2," showing the boundaries of the
District and all of the lots, parcels or pieces of land
proposed to be assessed and included within the District/-
and
WHEREAS, on August 6, 1986, the City Council duly
adopted Resolution No. 86-61, approving the Map submitted by
the Engineer of Work; and
WHEREAS, the City Clerk has duly filed the Map and
has forwarded a copy of the Map to the County Recorder of
the County of Los Angeles the County") for filing in such
office; and
WHEREAS, on August 6, 1986, the City Council duly
adopted Resolution No. 86-62, declaring the intention of the
City approving the formation of the District and the
acquisition of improvements described therein the
Improvement Project"); directing the Engineer of Work to
prepare a report with respect thereto; and authorizing the
issuance of improvement bonds pursuant to and in accordance
with the 1915 Act; and
WHEREAS, the Engineer of Work has prepared a report
dated August 6, 1986 the Engineer's Report"), pursuant to
Section 10204 of the Code, which has been submitted and
filed with the City; and
WHEREAS, on August 6, 1986, the City Council duly
adopted Resolution No. 86-63, preliminarily approving the
Engineer's Report and setting the time and place for hearing
protests in relation to the formation of the District and
the acquisition of the Improvement Project; and
WHEREAS/ in accordance with Resolution No. 86-63,
on August 6, 1986, the City Council duly convened a public
hearing for the presentation of any protests with regard to
the District; and
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1986 080 CC RESO ;¢fì ø ~! WHEREAS, on August 6, 1986, the City Council duly
adopted Resolution No. 86-64, finding that no protests were
received in relation to the proposed District, confirming
and approving the Engineer's Report and assessments
described therein, and ordering the levy of such assessment
upon the property in the District; and
WHEREAS, pursuant to Section 3114 of the Code, the
City Clerk has duly filed the Notice of Assessment"
relating to the District and has caused such notice to be
recorded in the Office of the County Recorder; and
WHEREAS, pursuant to Section 10602 of the Code, on
August 6, 1986, the City Council duly adopted Resolution No.
86-65, authorizing the sale of improvement bonds the
Bonds") for the purposes described herein pursuant to the
1915 Act, and directing certain terms and conditions with
respect thereto; and
WHEREAS, the City has duly entered into a Bond
Purchase Contract, dated as of August 26,' 1986 the Bond
Purchase Contract") with Smith Barney, Harris Upham & Co.
Incorporated the Underwriter") with respect to the Bonds;
and
WHEREAS, the City Council of the City of Baldwin
Park, pursuant to and in accordance with this Resolution and
the Resolutions described in these recitals, has hereby
authorized and ratified any and all actions relating to the
negotiated sale of improvement bonds, designated as City of
Baldwin Park, Improvement Bonds, Delta Assessment District
No. 86-2," in the principal amount of $1,625,000; and
WHEREAS, on August 26, 1986, the Cilty caused the
Bonds to be sold to the Underwriter; and
WHEREAS, on August 27, 1986, the City Council duly
adopted Resolution No. 86-81, approving the sale of the
Bonds, setting the interest rates therefor, and directing
Bond Counsel and other parties to take all actions necessary
to complete the issuance, sale and delivery of the Bonds;
NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND
ORDERED BY THE CITY COUNCIL OF THE CITY OF BALDWIN PARK AS
FOLLOWS:
Section 1.
a) Definitions. In addition to any words and
terms defined elsewhere in this Resolution, the following
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1986 080 CC RESO ;¢fì ø ~! words and terms as used in this Resolution shall have the
following meanings, unless the context otherwise requires:
Bond" or Bonds" means the City of Baldwin Park,
Improvement Bonds/ Delta Assessment District No. 86-2,"
dated August 15, 1986 and issued in the principal amount of
$1,625/000, as authorized by this Resolution and other
proceedings of the City.
Bond Register" means the register required to be
kept by the Fiscal Agent with respect to the Bonds, as
provided in Section 27 of this Resolution.
Certificate of the City" means a certificate
signed by an officer of the City including, without
limitation, the City Treasurer, City Clerk or Director of
Housing and Economic Development) with the seal of the City
affixed. As used in this Resolution, the term Officer's
Certificate" means a certificate of the City signed by an
officer of the City including, without limitation, the City
Treasurer and the Director of Housing and' Economic
Development of the City), with the seal of the City affixed,
and filed with the City Treasurer. Any such instrument and
supporting opinion or representations, if any, may, but need
not, be combined in a single instrument with any other
instrument, opinion or representation and the two or more so
combined shall be read and construed as a single instrument.
City" means the City of Baldwin Park, California.
fit-v TrpaRii rpr" mpans t-hp Hi rpr'l-nr nf
City Treasurer" means the Director of
Administrative Services of the City, or such officer who is
then performing the functions of Treasurer of the City.
Code" means the Streets and Highways Code of the
State of California, as amended.
District" means the City of Baldwin Park, Delta
Assessment District 86-2,." formed pursuant to the provisions
of Resolution No. R86-134, duly adopted on August 6, 1986,
and other proceedings of the City.
Engineer's Report" means the report dated August
6, 1986, relating to the District.
Fiscal Agent" means Security Pacific National
Bank, in the City of Los Angeles, California, as designated
by the City in Section 27 of this Resolution, and its
successors/ or any substitute Fiscal Agent designated by the
City.
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1986 080 CC RESO ;¢fì ø ~! 1915 Act" means the Improvement Bond Act of 1915,
commencing with Section 8500 of the Code/ as amended.
1913 Act" means the Municipal Improvement Act of
1913 / commencing with Section 3000 of the Code. as amended.
Opinion of Counsel" means a written opinion of an
attorney or firm of attorneys of nationally recognized
reputation in the field of municipal bond law.
Outstanding/" when used as of any particular time
with reference to Bonds except for obligations of the City
which are junior and subordinate to the Bonds)/ means/
subject to the provisions of Section 27 of this Resolution,
all Bonds except:
1) Bonds theretofore cancelled by the Fiscal
Agent or surrendered to the Fiscal Agent for
cancellation after purchase in the open market or
because of payment at/ or redemption prior to,
maturity;
2) Bonds paid or deemed to have been paid;
3) Bonds in lieu of or in substitution for
which other bonds shall have been authorized,
executed/ issued and delivered by the City pursuant
to this Resolution.
Payment Date" means any date specified in this
Resolution on which any payment of the principal of or
interest on the Bonds is due and payable.
Permitted Investments" means any of the following
which at the time of investment are legal investments under
the laws of the State of California for the moneys proposed
to be invested therein: a) direct general obligations of,
including obligations issued or held in book entry form on
the books of the Department of the Treasury of the United
States of America/ or obligations the payment of principal
of and interest on which are unconditionally guaranteed by
the United States of America; b) Federal Home Loan
Mortgage Corporation participation certificates or senior
debt obligations; c) Federal National Mortgage Associa-
tion mortgage-backed securities or senior debt obliga-
tions; d) taxable government money market portfolios of
the Fiscal Agent restricted to obligations with maturi-
ties of one year or less issued or guaranteed as to pay-
ment of principal and interest by the full faith and
credit of the United States; e) deposits which are fully
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1986 080 CC RESO ;¢fì ø ~ ! insured by the Federal Savings and Loan Insurance
Corporation or the Federal Deposit Insurance Corporation, or
f) certificates of deposit of a California state banking
corporation or a national banking association having offices
in and doing business in the State of California, provided
however, that such certificates of deposit are
coliateralized at 110% of their par or face value with
direct obligations of the United States Government or
obligations unconditionally guaranteed as to the timely
payment of principal and the interest thereon by the United
States Government, such obligations being marked to market
not less than every thirty 30) days, with such collateral
physically in the possession of the Fiscal Agent.
Resolution" means this Resolution No. 86-80 of the
City, duly adopted on August 27, 1986.
b) Rules of Interpretation.
1) Unless the context shall otherwise indicate,
words importing the singular number shall include the
plural and vice versa, and words importing persons shall
include firms/ associations and corporations/ including
governmental entities, as well as natural persons.
2) Ail references in this instrument to
designated Sections" and other subdivisions are, unless
otherwise specified, to the designated Sections and
subdivisions of this Resolution as originally
executed. The words herein," hereof," hereunder" and
other words of similar meaning refer to this Resolution
as a whole and not to any particular Section or other
subdivision.
3) The Table of Contents and the Section headings
of this Resolution shall not be treated as a part of
this Resolution or as affecting the true meaning of the
provisions hereof.
Section 2^ Amount, Issuance and Purpose of
Bonds. In accordance with and pursuant to proceedings of
the City as described in the Recitals hereto, and the 1915
Act, Bonds of the City in the principal amount of $1,625,000
shall be issued by the City for use in connection with the
District, by providing funds for the financing of costs
related to the acquisition of improvements within the
District; and such issue of Bonds is hereby created and
authorized.
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1986 080 CC RESO ;¢fì ø ~
! Section 3^ Terms o£ Bonds; Temporary Bonds.
a) Terms of Bonds. The Bonds shall be designated
City of Baldwin Park, Improvement Bonds, Delta
Assessment District No. 86-2." The Bonds shall be fully
registered bonds without coupons in the denomination of
Five Thousand Dollars $5,000) each/ or ny integral
multiple thereof, shall mature, subject to prior
redemption, and bear interest at the rates none of
which shall exceed 12% per annum), as set forth in
Exhibit A attached hereto and incorporated herein by
this reference the Maturity Schedule"), and shall be
initially dated as of August 15, 1986. The Bonds of
each maturity shall be assigned a letter in consecutive
alphabetical order from A" onward excepting therefrom
I" and 0") and shall be numbered in consecutive
numerical order in each maturity from 1" upwards.
Interest on the Bonds is payable semiannually on March 2
and September 2 of each year to their respective dates
of maturity, commencing March 2, 1987. Principal on the
Bonds is payable on September 2 of the several years as
set forth on the Maturity Schedule. The Bonds shall be
substantially in the form of Exhibit B attached hereto
and incorporated herein by this reference.
b) Temporary Bonds. Any Bonds issued pursuant to
this Resolution may be initially issued in temporary
form exchangeable for definitive Bonds when the same are
ready for delivery. The temporary Bonds may be printed,
lithographed or typewritten, and shall be substantially
in the form of Exhibit B to this Resolution. Every
temporary Bond shall be executed by the City and
authenticated by the Fiscal Agent upon the same
conditions and in substantially the same form and manner
as the definitive Bonds. If the City issues temporary
Bonds, it will execute and furnish definitive Bonds no
later than three 3) weeks after the date of the initial
delivery of the Bonds, and, thereupon, the temporary
Bonds shall be surrendered for cancellation at the
office of the Fiscal Agent, or at such other place in
California as the City may approve, and the Fiscal Agent
shall deliver in exchange for such temporary Bonds an
equal aggregate principal amount of definitive Bonds of
authorized denominations of this same issue. Until so
exchanged, the temporary Bonds shall be entitled to the
same benefits under this Resolution as definitive Bonds
of the same issue delivered under this Resolution,
except that any interest which has accrued thereon shall
not be paid until the exchange has been accomplished.
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1986 080 CC RESO ;¢fì ø ~ ! Section 4^. Interest.
a) Dates from which Bonds Bear Interest. Each
Bond shall bear interest from the interest Payment Date
next preceding the date of authentication thereof unless
1) such date of authentication is an interest Payment
Date to which interest on the Bonds has been paid in
full or duly provided for/ in which event it shall bear
interest from such date of authentication, or 2) such
date of authentication is prior to the first interest
Payment Date, in which event such Bond shall bear
interest from the date of the Bonds or 3) such date of
authentication is between the fifteenth 15th) day of
the month immediately preceding the interest Payment
Date and the interest Payment Date, in which event such
Bond shall bear interest commencing on such interest
Payment Date. Interest on the Bonds shall be calculated
on the basis of a 360-day year composed of twelve 30-day
months.
b) Interest after Maturity. Each Bond shall
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 such Bond. If a Bond is not presented at
maturity, interest thereon shall run only until
ma t u r i t y.
Section j[. Proceedings of the City. The terms,
provisions and conditions of Resolution Nos. 86-58, 86-59,
86-60, 86-61, 86-62, 86-63, 86-64, 86-65, 86-81, the
Engineer's Report, and other proceedings of the City
relating to the District, as set forth in the Recitals
hereto, are by this reference incorporated herein as if set
forth in their entirety in this Resolution,
Section 6_. Unpaid Assessments. On or after July
I/ 1986, and annually thereafter, in any year in which any
of the Bonds remain outstanding, the City shall cause
assessments to be levied against each parcel of property in
the District, in accordance herewith, and to cause such
assessments to be confirmed and collected in accordance
herewith. All sums received by the City from the collection
of assessments for the District, plus any interest and
penalties thereon, shall be deposited in accordance with
Section 13 hereof.
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1986 080 CC RESO ;¢fì ø ~
1986 080 CC RESO ;¢fì ø ~
! in the case of any lost, stolen or destroyed Bond, there
shall be first furnished to the City and the Fiscal
Agent evidence of such loss/ theft or destruction
satisfactory to the City and the Fiscal Agent/ together
with indemnity satisfactory to them/ and as may be
required by them or by applicable law. Ownership of any
Bond shall be as shown on the Bond Register, and the
same shall be conclusive. In the event any such Bond
shall have matured or is about to mature, instead of
issuing a duplicate Bond, the City may cause the same to
be paid by the Fiscal Agent to the holder of the Bond as
shown on the Bond Register without surrender thereof.
The City and the Fiscal Agent may charge the holder of
such Bond their reasonable fees and expenses in
connection with the actions required hereby.
Section 8. Manner and Place of Payment. The
principal, redemption premium, if any, and interest on the
Bonds shall be payable in lawful money of the United States
of America. The principal of and redemption premium, if
any, on all Bonds shall be payable at the corporate trust
office of the Fiscal Agent io the City of Los Angeles,
California, or at the office of any successor Fiscal Agent
designated by the City. Interest on the Bonds shall be paid
by the Fiscal Agent by check, draft or warrant. The persons
in whose names the Bonds are registered at the close of
business on the date occurring on the fifteenth day of the
month preceding the interest Payment Date shall be entitled
to receive the interest payable on such date, which interest
shall be mailed to such persons' addresses as the same
appear on the Bond Register at such date, notwithstanding
the cancellation of any Bond upon any registration of
transfer or exchange thereof subsequent to such date.
Section Registration and Exchange. The Bonds
shall be issued in fully registered form. The Bonds may be
exchanged for other Bonds of equal aggregate denominations
of the same maturity. Transfer of ownership of a Bond or
Bonds shall be made by exchanging the same for a new Bond or
Bonds. The Bonds shall be transferable only on the Bond
Register kept by the Fiscal Agent, upon surrender thereof at
the office of the Fiscal Agent, together with a written
instrument of transfer satisfactory to the Fiscal Agent,
duly executed by the registered owner or his attorney duly
authorized in writing, and thereupon a new Bond or Bonds, in
the same aggregate principal amount and of the same series,
interest rate and maturity, shall be issued to the
transferee in exchange therefor. All of such exchanges
shall be made in such manner and upon such reasonable terms
and conditions as may from time to time be determined and
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1986 080 CC RESO ;¢fì ø ~! prescribed by the City and the Fiscal Agent. The Fiscal
Agent shall not be required to 1) register the transfer or
exchange of Bonds for a period commencing on the fifteenth
day of the month next preceding an interest or principal
Payment Date on such Bonds or fifteen 15) days next
preceding any selection of Bonds of the same series,
maturity and interest rate to be redeemed or thereafter
until after the first publication or mailing of any notice
of redemption, or 2) register the transfer of or exchange
of any Bonds called for redemption.
A person in whose name a Bond shall be registered
on the Bond Register shall be deemed the absolute owner of
such Bond and payments of or on account of the principal/
redemption premium, if any, and interest thereon shall be
made only to the registered holder or his legal
representative and neither the City nor the Fiscal Agent
shall be affected by notice to the contrary. Payment made
to the person shown on the Bond Register as the owner of any
Bond for the purpose of such payment shall be valid and
effective to the extent of the sums so paid to satisfy and
discharge the liability upon.such Bond in respect of which
such payment was made.
In all cases in which the privilege of the transfer
or exchange of Bonds is exercised, the person requesting the
transfer of any such Bonds, as a condition precedent to the
exercise of such privilege/ shall pay the Fiscal Agent's
transfer fee and shall pay to the City or the Fiscal Agent/
as the case may be, any tax/ fee or other governmental
charge which the City or the Fiscal Agent, as the case may
be/ is required to pay in connection therewith.
Section 10. Redemption in Advance of Maturity.
a) Redemption. Each Bond or, as provided herein,
any portion of any Bond, shall be subject to redemption
in advance of its stated maturity on any interest
Payment Date upon payment to the registered owner
thereof of the principal amount redeemed and accrued
interest thereon to the date of redemption, together
with a redemption premium equal to three percent 3%) of
the principal amount redeemed.
Any Bond may be called for redemption in part,
provided that the Bonds will be redeemed only in
integral multiples of $5,000.
If less than all of the Bonds Outstanding are to be
redeemed in advance of their stated maturities, the
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1986 080 CC RESO ;¢fì ø ~! Fiscal Agent shall select the Bonds to be redeemed in
the following manner: 1) the lowest numbered Bond of
the annual series midway to the longest maturity date
shall first be selected; 2) successive Bonds shall be
selected by-designating the lowest numbered Bond of each
annual series/ before and after the annual series from
which the first Bond is selected, in order to provide,
insofar as possible, for the proportionate selection of
Bonds redeemed from each annual series of Bonds.
b) Notice of Redemption. Notice of redemption
shall be given by personal service or registered mail,
not less than sixty 60) days prior to the redemption
date to the registered owner of each such Bond as such
person's name and address appear on the Bond Register,
but failure to give such notice, or any defect in any
notice so given, shall not, except as to the holder of a
Bond to whom notice was not given or except as to the
holder of a Bond as' to whom notice was materially
defective, affect the validity of the redemption of any
of the Bonds. The notice of redemption shall 1) state
the redemption date; 2) state the redemption price; 3)
state the numbers and dates of maturity of the Bonds to
be redeemed; provided, however, that whenever any notice
of redemption includes all of the outstanding Bonds, the
number of the Bonds need not be stated; 4) state, as to
any Bonds redeemed in part only, the Bond numbers and
the principal portion thereof to be redeemed; and 5)
state that the interest on the principal portion of the
Bonds so designated for redemption shall cease to accrue
from and after such redemption date and that on said
date there shall become due and payable on each of such
Bonds the redemption price thereof.
c) Partial Redemption of Bonds. Upon surrender
of any Bond redeemed in part only, the City shall
execute and the Fiscal Agent shall authenticate and
deliver to the registered owner thereof, at the expense
of the City, a new Bond or Bonds of authorized
denominations equal in aggregate principal amount to the
unredeemed portion of the Bond surrendered and of the
same interest rate and same maturity.
d) Effect of Redemption. Notice of redemption
having been duly given as aforesaid, and moneys for
payment of the principal of, redemption premium, if any/
and interest payable upon redemption of the Bonds being
set aside/ the Bonds, or parts thereof, as the case may
be/ so called for redemption shall, on the redemption
date, become due and payable at the redemption price
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1986 080 CC RESO ;¢fì ø ~! specified in such notice/ and the interest on the Bonds,
or parts thereof, as the case may be, so called for
redemption shall cease to accrue, and said Bonds, or
parts thereof, as the case may be, shall cease to be
entitled to any benefit under this Resolution, and the
owners of said Bonds shall have no rights in respect
thereof except to receive payment of the redemption
price thereof, and, in the case of partial redemption of
Bonds/ to also receive a new Bond or Bonds for the
unredeemed balance as aforesaid. All Bonds, or parts
thereof, as the case may be, redeemed pursuant to the
provisions of this Section shall be cancelled upon
surrender thereof and delivered to, or upon the order
of, the City.
Section 11. Funds Established.
a) There is hereby established with the City a
special trust fund designated as City of Baldwin Park,
Improvement Bonds, Delta Assessment District No. 86-2,
Improvement Fund" the Improvement Fund").
b) There is hereby established with the Fiscal
Agent a special trust fund designated as City of
Baldwin Park, Improvement Bonds, Delta Assessment
District No. 86-2, Redemption Fund" the Redemption
Fund").
c) There is hereby established with the Fiscal
Agent a special trust fund/ pursuant to Part 16 of
Division 10 of the Code, designated as City of Baldwin
Park, Improvement Bonds, Delta Assessment District No.
86-2, Reserve Fund" the Reserve Fund"),
d) There is hereby established with the Fiscal
Agent a special trust fund designated as City of
Baldwin Park, Improvement Bonds, Delta Assessment
District No. 86-2, Costs of Issuance Fund" the Costs
of Issuance Fund").
So long as any of the Bonds, or any interest
thereon remain unpaid, the moneys in the foregoing Funds
shall be used for no purposes other than those required or
permitted by this Resolution or by law. Moneys in the
Redemption Fund, the Reserve Fund and the Costs of Issuance
fund shall be invested in accordance with Section 15 hereof.
Section 12. Use of Bond Proceeds. The Fiscal
Agent, on behalf of the City, shall receive the proceeds
from the sale of the Bonds, upon the delivery of the Bonds
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1986 080 CC RESO ;¢fì ø ~! to the initial purchaser thereof and shall dispose of such
proceeds as follows:
a) the sum cf $4,637.21, as accrued interest paid
by the Purchaser of the Bonds, plus the sum of
$126,000.00, representing capitalized interest, shall be
deposited into the Redemption Fund;
b) the sum of $162/500.00 shall be deposited into
the Reserve Fund;
c) the"sum of $83,125.00 shall be deposited into
the Costs of Issuance Fund; and
d) the sum of $1,204,625.00 shall be deposited
into the Improvement Fund.
Section 13. Redemption Fund.
a) Pledge of Moneys; Deposits in Redemption
Fund. All sums received by the City from the collection
of the unpaid assessment^ including prepayments of
installments of unpaid assessments) for the District and
of the interest, prepayment premiums and costs of
redeeming Bonds from prepayments of unpaid assessments,
and penalties thereon, and surplus funds of the City not
required for lawful municipal obligations in the
circumstances described'in Section 28 hereof, plus any
other sums made available therefor are hereby pledged by
the City for the payment of the principal of, redemption
premium, if any, and interest on the Bonds. The City
shall forward such moneys to the Fiscal Agent in
accordance with this Section, who shall deposit such
sums into the Redemption Fund. All sums to become due
for the principal of, redemption premium/ if any, and
interest on the Bonds shall be disbursed and paid by the
Fiscal Agent from said Redemption Fund and shall not be
paid out of any other funds.
b) Transfer Procedures. The City shall forward
to the Fiscal Agent, not less than three 3) business
days prior to each interest and principal Payment Date,
sufficient moneys to pay the principal of, redemption
premium, if any, and interest on the Bonds due on such
Payment Date.
c) Accounting Procedures. The City Treasurer is
hereby directed and authorized to establish and ther-
eafter maintain and employ the payment and accounting
procedures to be used by the City in connection with the
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1986 080 CC RESO ;¢fì ø ~! District, including, without limitation/ accounting for
deposits and withdrawals into and out of the Improvement
Fund.
Section 14. Reserve Fund.
a) Transfer into Redemption Fund. i) Amounts in
the Reserve Fund shall be transferred to the Redemption
Fund if, as a result of delinquencies in the payment of
assessments or otherwise, there are insufficient monies
in the Redemption Fund to pay the principal of and
interest on the Bonds. During the term of the Bonds,
the money in the Reserve Fund shall be available for
transfer into the Redemption Fund pursuant to Sections
8800 through 8809 of the Code. The amounts so advanced
shall be reimbursed to the Reserve Fund from the
proceeds of redemption or sale of the lot or parcel for
which payment of delinquent assessment installments was
made from the Reserve Fund; ii) the Reserve Fund shall
be reduced and amounts in the Reserve Fund shall be
transferred to the Redemption fund upon the payment by a
property owner of the then unpaid principal amount of
the unpaid reassessment with respect to such assessed
property in an amount equal to the principal amount of
Bonds redeemed times the ratio of the total amount
initially provided for in the Reserve Fund over the
total amount originally assessed in the proceedings for
the issuance of the Bonds.
b) Investment Income. Investment income from the
Reserve Fund shall remain in the Reserve Fund. If at
any time the amount of any income realized from the
investment of money in the Reserve Fund plus the
remaining principal amount thereof exceeds an amount
equal to fifteen percent 15%) of the original aggregate
principal amount of the Bonds, less any discount
thereon, such excess shall be transferred to the
Redemption Fund and used for the redemption of Bonds in
accordance herewith within thirteen 13) months of the
date of occurrence of such excess; provided however,
that the City shall be responsible for making the
calculation referred to in this paragraph and shall
direct the amount of any transfer to be made by the
Fiscal Agent.
c) Retirement of Unmatured Bonds. When the
amount in the Reserve Fund equals or exceeds the amount
required to retire the remaining Bonds Outstanding
whether by advance retirement or otherwise), the amount
of the Reserve Fund shall be transferred to the
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1986 080 CC RESO ;¢fì ø ~! Redemption Fund/ and such remaining Bonds shall be
redeemed in accordance herewith, and the remaining
installments of principal and interest not yet due from
assessed property owners shall be cancelled without
payment.
d) Investment of Funds. Moneys in the Redemption
Fund, Costs of Issuance Fund and the Reserve Fund shall
be invested and reinvested by the Fiscal Agent in
Permitted Investments, provided however, that such
investments mature by their terms prior to the date on
which such moneys are required to be paid out in
accordance with the provisions hereof. The Treasurer
may authorize and direct the Fiscal Agent to make such
investments in specifically designated Permitted
Investments, provided however, that such directions
shall be in writing to the Fiscal Agent and delivered no
later than 12:00 noon on the day prior to any such
investment.
Section 15. Costs of Issuance Fund. Moneys in the
Costs of Issuance Fund shall' be disbursed at the time of
closing by the Fiscal Agent in accordance with and as set
forth in a Certificate of the City. Thereafter, any
appropriate costs of issuance may be paid therefrom in
accordance with written directions to the Fiscal Agent from
the City, provided, however, that the Fiscal Agent shall
deposit any remaining funds in the Costs of Issuance on the
one hundred eighty-first day following the closing to the
credit of the Redemption Fund.
Section 16. Improvement Fund. All moneys in the
Improvement Fund shall be withdrawn only upon warrants,
drafts, or checks of the City, and shall be applied
exclusively to the payment of the cost of the acquisition of
the improvements referred to in the Recitals of this
Resolution, and all expenses incidental thereto. Any
surplus remaining in the Improvement Fund after payment of
all costs and all legal charges/ claims and expenses
relating to the District shall be used thereafter as set
forth in this Resolution and in accordance with Section
10427.1 of the Code.
Section 17. Foreclosure of Lien. If any
installment of the principal or interest of any assessment
levied in the District becomes delinquent, the City Attorney
is hereby authorized and directed to file an action in the
Superior Court of the County of Los Angeles to foreclose the
lien of the delinquent assessment pursuant to the authority
given in Section 8830, efc seq., of the Code. The'City
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1986 080 CC RESO ;¢fì ø ~! hereby covenants to commence such an action not later than
one hundred fifty 150) days following the date of
delinquency.
Section 18. Unpaid Assessments as Trust Fund. The
unpaid assessments~~shown on the list of unpaid assessments
determined by the Mayor and City Council to be correct,
together with the interest thereon, shall remain and
constitute a trust fund and security for the redemption and
payment of the Bonds and of the interest which may be due
thereon, and such assessments and each installment thereof
and the interest and penalties thereon shall constitute a
lien against the lots and parcels of land on which they are
made, until the same shall be paid.
Annual installments of each unpaid assessment shall
be payable in each year preceding the date of maturity of
each of the several series of Bonds which have been issued,
sufficient to pay the Bonds when due.
The annual proportion of each unpaid assessment
coming due in any year, together with the annual interest on
such unpaid assessment, shall be payable in the same manner
and at the same time and in the same installments as the
general taxes of the City on real property are payable, and
such unpaid assessment installments and such annual interest
on the unpaid assessment shall be payable and become
delinquent on the same dates and in the same proportionate
amounts and bear the same proportionate penalties and
interest after delinquency as do the general taxes on real
property in the City.
Section 19. Reassessment. If any assessment
heretofore or hereafter issued is void or unenforceable, for
any cause, or if Bonds are issued to represent or be secured
by any assessments and such issuance is not effective
through the curative provisions in relation thereto under
the 1915 Act to make them valid and enforceable, then a
reassessment shall be made in the manner and form provided
by the 1915 Act.
Section 20. Incontestability. After the sale and
delivery of the Bonds by the City, the Bonds shall be
incontestable by the City.
Section 21. Contract with Bondholders. The
provisions of this Resolution and of any other resolution
supplementing or amending this Resolution, shall constitute
a contract between the City and the holders of the Bonds and
the provisions thereof shall be enforceable by any holder of
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1986 080 CC RESO ;¢fì ø ~! a Bond or the equal benefit and protection o£ all holders
of the Bonds similarly situated, by mandamus, accounting/
mandatory injunction or any other suit, action or proceeding
at law or in equity that is now or may hereafter be
authorized under the laws of the State of California in any
court of competent jurisdiction. Such contract is made
under and is to be construed in accordance with the laws of
the State of California.
No remedy contained in this Resolution or conferred
hereby upon any holder of a Bond is intended to be exclusive
of any other remedy, but each such remedy is cumulative and
in addition to every other remedy and may be exercised
without exhausting and without regard to any other remedy
conferred by law. No waiver of any default or breach of
duty or contract by any Bondholder shall affect any
subsequent default or breach of duty or contract or shall
impair any right or remedies on said subsequent default or
breach. No delay or omission of any holder of a Bond to
exercise any right or power accruing upon any default shall
impair any such right or power or shall be construed as a
waiver of any default or acquiescence therein. Every right
and every remedy conferred upon the holders of the Bonds may
be enforced and exercised' as often as they may be deemed
expedient. In case any suit, action or proceeding to
enforce any right or exercise any remedy shall be brought or
taken and should said suit, action or proceeding be
abandoned, or be determined adversely to the holders of the
Bonds, then, and in every such case, the City and the
holders of the Bonds shall be restored to their former
positions, rights and remedies as if such suit/ action or
proceeding had not been brought or taken.
Section 22. Cessation of City Obligations. When
all of the Bonds and all accrued interest thereon have been
fully paid and discharged, the obligations of the City
contained in this Resolution shall cease and terminate, and
the City shall be under no further obligation to do or
perform any of the covenants, conditions or agreements
contained in this Resolution.
Section 23. Partial Invalidity. If any portion or
portions of this Resolution shall be for any reason held by
a court of competent jurisdiction to be unconstitutional,
invalid or unenforceable, such holding shall not affect the
validity of the remaining portions hereof.
Section 24. Liberal Construction. This Resolution
shall be liberally construed to the end that its purpose may
be effected. No error, irregularity, informality, and no
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1986 080 CC RESO ;¢fì ø ~! omission herein or in any proceeding taken pursuant thereto
shall void or invalidate this Resolution or such proceeding
or any part thereof, or any act or determination made
pursuant thereto,
Section 25. No Arbitrage. The City covenants and
agrees to take no action which, in the Opinion of Counsel,
would result in the interest received by the holders of the
Bonds becoming taxable under federal income tax laws. Any
such Opinion of Counsel may be based uponr insofar as it
relates to factual matters, information which is in the
possession of the City as shown by a Certificate or opinion
of, or representation or warranty by, an officer or officers
of the City. The City hereby covenants to the purchasers of
the Bonds that it will make no use of the proceeds of the
Bonds at any time during the term thereof which, if such use
had been reasonably expected on the date of the issuance of
the Bonds, would have caused such Bonds to be arbitrage
bonds" within the meaning of Section 103(c) of the Internal
Revenue Code of 1954, as amended, and applicable regulations
thereunder, and the City hereby assumes the obligation to
comply with such Section 103(c) and such regulations
throughout the term of the Bonds.
Section 26. Authority to Consummate Transaction.
The Mayor of the City, the City Manager/ the City Clerk, the
City Treasurer and other proper officers, employees and
agents of the City, or any of them, are hereby authorized
and directed to execute and deliver any and all papers and
instruments and to do and cause to be done any and all acts
and thiri-gs necessary or proper for carrying out the
transactions contemplated by this Resolution, including,
without limitation, the delivery of the Bonds to the
purchasers thereof.
Section 27. Fiscal Agent.
a) Appointment. Security Pacific National Bank,
in the City of Los Angeles, California, is hereby
appointed Fiscal Agent of the City for the purpose of
paying the principal of, premium, if any, and interest
on the Bonds and for other purposes as set forth
herein. The City may remove, upon thirty 30) days'
prior written notice, any Fiscal Agent and appoint a
successor thereto, but any successor shall be a duly
qualified bank or trust company authorized to do and
doing business in the State of California. Any Fiscal
Agent may resign, upon thirty 30) days' prior written
notice, provided, however, that any such removal or
resignation shall only be effective upon the acceptance
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1986 080 CC RESO ;¢fì ø ~! of the duties and responsibilities hereunder by a
successor Fiscal Agent. The City Treasurer is hereby
authorized and directed to enter into, in the name of
the City, such agreements and credit arrangements with
the Fiscal Agent as shall be necessary and desirable in
order to enable the Fiscal Agent to carry out the duties
of its office. The Fiscal Agent is hereby authorized to
redeem the Bonds and corresponding interest on the Bonds
when duly presented for payment at maturity, or on
redemption prior to maturity, and to cancel all Bonds
and corresponding interest on the Bonds when duly
presented for payment at maturity, and to cancel all
Bonds and interest upon payment thereof and to destroy
such cancelled Bonds and to deliver to the City a
statement certifying that such actions have been taken.
The Fiscal Agent shall keep accurate records of all
Bonds and interest paid and discharged. The City
Treasurer is hereby authorized to compensate the Fiscal
Agent for its services rendered pursuant to the
provisions of this Resolution.
b) Responsibilities. The recitals of facts,
covenants and agreements herein and in the Bonds shall
be taken as statements, covenants and agreements of the
City, and the Fiscal Agent assumes no responsibility for
the correctness of the same, or makes any representa-
tions as to the validity or sufficiency of this
Resolution or of the Bonds or interest payments, or
shall incur any responsibility in respect thereof, other
than in connection with the duties or obligations herein
or in the Bonds assigned to or imposed upon it. The
Fiscal Agent shall not be liable in connection with the
performance of its duties hereunder, except for its own
negligence or willful misconduct.
c) Bond Register. The Fiscal Agent shall keep or
cause to be kept a register the Bond Register")
showing the series, number, date, amount, rate of
interest/ the last known holder of each Bond, and the
amount of each interest installment paid. The Fiscal
Agent shall cancel or cause to be cancelled each Bond so
paid. The Fiscal Agent shall also act as the Transfer
Agent and Registrar under this Resolution.
Section 28. Limited Liability. Notwithstanding
anything in this Resolution, the Bonds, or in any of the
Resolutions adopted in connection with the proceedings for
the District, to the contrary, the Bonds shall be a special
obligation of the City, and the City shall not under any
circumstances including, without limitation, after any
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1986 080 CC RESO ;¢fì ø ~! installment of principal or interest o£ any assessment
levied on any lot or parcel in the District becomes
delinquent or after the City acquires title to any such lot
or parcel whether through foreclosure or otherwise) be
obligated to pay the principal of, premium, if any, or
interest on the Bonds from any source whatsoever other than
those sources designated herein and any other sources
required by the 1915 Act. In addition, in the event the
City files an action and forecloses the lien of any
delinquent assessment levied in the District, the City shall
not, except as provided in this sentence, be liable or
otherwise obligated in any way whatsoever to purchase or
otherwise acquire any lot or parcel of property sold at the
execution sale pursuant to the judgment in any such action
foreclosing such lien; provided, however, if there is no
other purchaser at such sale, the City shall purchase such
lot or parcel at such sale, provided that the City's
obligation to so purchase shall be limited solely to bidding
in the amount of such judgment and any other amount
permitted or required by law) at such sale and the City
shall not be liable or otherwise obligated in any way
whatsoever to furnish any funds cash or otherwise) in
connection with such purchase. In the event that the City
so purchases any such lot or parcel, it shall be liable or
otherwise obligated to pay future unpaid assessments or
taxes on such lot or parcel. Neither the Mayor, the City
Council, the officers or employees of the City, any person
or entity acting for or on behalf of the City in connection
with the issuance of the Bonds or in connection with the
formation or operation of the District, nor any persons
executing the Bonds, shall be liable personally on the Bonds
or be subject to any personal liability for the Bonds or any
personal liability or accountability whatsoever by reason of
or in connection with the issuance of the Bonds or by reason
of any act or acts or the failure or omission to take any
act or acts including, without limitation, a negligent act
or omission) in connection with or related to the formation
or operation of the District.
Section 29. Amendment of Resolution. The City
may/ without the consent of, or notice to, any of the
holders of the Bonds, amend or otherwise modify this
Resolution or any amendment or other modification to this
Resolution, to cure any ambiguity, defect or omission in
this Resolution; provided, however, that nothing contained
in this Section 29 shall permit, or be construed as
permitting, without the consent of the holder of every Bond,
a) an extension of the maturity of the principal of or the
interest on any Bond or of any redemption dates, or b) a
reduction in the principal amount of any Bond or the rate of
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1986 080 CC RESO ;¢fì ø ~! interest thereon, or c) a privilege or priority of any Bond
or Bonds over any other Bond or Bonds.
Section 3 0. Payments Due on Sundays and
Holidays. In any case where principal, premium, if any,
and/or interest become due and payable on a Sunday, legal
holiday or a day in which banking institutions are
authorized by law to close in any city in which Bonds are
payable, such payment need not be made on such date in such
city but may be made on the next succeeding business day not
a Sunday, legal holiday or a day on which banking
institutions are authorized by law to close, with the same
force and effect as if made on the due and payable date and
no interest shall accrue for the period after such date.
Section 31. Captions and Headings. The captions
and headingsin this Resolution are solely for convenience
of reference and shall not constitute a part of this
Resolution nor shall they affect its meaning, construction
or effect.
Section 32. Ratification of Proceedings. Any and
all actions taken by the City Manager, City Treasurer, City
Clerk or other officers of the City, prior to the date of
this Resolution, pertaining to the lawful issuance, sale and
delivery of the Bonds, is hereby ratified, confirmed and
adopted by the City as the lawful act of the City.
Section 33. Effective Date, This Resolution shall
become effective upon adoption.
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1986 080 CC RESO ;¢fì ø ~! CITY OF BAL-SWiN PARK, CALIFORNIA
I HEREBY CERTIFY that the foregoing Resolution was
duly adopted by the City Council of the City of Baldwin Park
at an adjourned regular meeting thereof/ held on the 27th
day of August, 1986, by the following vote:
AYES: MCNEILL, IZELL, KING AND MAYOR WHITE
NAYS: NONE
ABSENT: GIBSON
ABSTAIN: NONE
L<^. \^^
f
/ eity Clerk
C^ty of Baldwin Park,
California
APPROVED AS TO FORM:
/3 i^^ S
a^L
City Attorney
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1986 080 CC RESO ;¢fì ø ~! EXHIBIT A
MATURITY SCHEDULE
Principal Maturity Date Interest
Amount September 2 Rate
$5,000
5/000
5,000
5/000
5/000
35/000
35/000
40/000
45/000
45/000
50/000
55/000
60/000
65/000
70/000
75/000
80/000
90/000
95/000
105/000
110/000
120,000
130/000
140/000
150/000
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
6.00%
6.50
7.00
7.20
7.25
7.25
7.40
7.50
7.60
7.70
7.75
7.80
7.90
8.00
8.00
8,00
8.00
8.00
8.00
8.00
8.00
8.00
8.00
8.00
8.00
1
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1986 080 CC RESO ;¢fì ø ~ ! EXHIBIT B
FORM OF BOND
UNITED STATES OF AMERICA
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
REGISTERED
NUMBER:
REGISTERED
$
CITY OF BALDWIN PARK
IMPROVEMENT BOND
DELTA ASSESSMENT DISTRICT NO. 86-2
INTEREST RATE:
REGISTERED OWNER:
PRINCIPAL SUM:
MATURITY DATE:
September 2
BOND DATE:
August 15/ 1986
CUSIP NUMBER
Under and by virtue of the Improvement Bond Act of 1915 /
consisting of Division 10 commencing with Section 8500) of the
Streets and Highways Code of the State of California the Act")
and other proceedings of the City of Baldwin Park, California
the City")/ the City willr out of the Bond Redemption Fund for
the payment of improvement bonds designated as City of Baldwin
Park/ Improvement Bonds, Delta Assessment District No. 86-2" the
Bonds"), issued upon the unpaid portion of assessments made for
the acquisition of improvements more fully described in
proceedings taken pursuant to Resolution No. 86-80, duly adopted
by the City on the 27th day of Augusta 1986, 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 1, 1987, 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
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1986 080 CC RESO ;¢fì ø ~ ! on March 1, 1987. Both the principal hereof and redemption
premium hereon,. if any, are payable at the corporate trust office
of Security Pacific National Bankf Fiscal Agent, in the City of
Los Angeles, California, and the interest hereon is payable by
check or draft mailed to the owner hereof at the owner's address
as it appears on the records of the Fiscal Agent or at such
address as may have been filed with the Fiscal Agent for that
purpose, as of the fifteenth day of the month immediately
preceding each interest payment date.
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 Bond Redemption Fund with which
to pay same. If it is not presented at maturity, interest hereon
will run until maturity.
This Bond shall not be entitled to any benefit under the
Act or Resolution No. 86-80 of the City, duly adopted on August
27 / 1986 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 Fiscal Agent.
IN WITNESS WHEREOF, the City of Baldwin Park has caused
this Bond to be signed in facsimile by the Director of
Administrative Services of the City and by its City Clerk, and
has caused its corporate seal to be reproduced in facsimile
hereon all as of the fifteenth day of August, 1986.
CITY OF BALDWIN PARK
City Clerk Director of Administrative
Services Treasurer
SEAL]
Certificate of
Authentication and Registration
This is one of the Bonds described
in the wifchin-mentioned Resolution
of Issuance, which has been
authenticated and registered on
ay_____________
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1986 080 CC RESO ;¢fì ø ~ ! FORM OF OPINION
August 28, 1986
City Council
City of Baldwin Park
14403 East Pacific Avenue
Baldwin Park, California
Re: $1,625/000 City of Baldwin Park, Improvement
Bonds, Delta Assessment District No, 86-2
Members of the Council:
We have acted as Bond Counsel for the City of
Baldwin Park the City") in connection with the
authorization and issuance of improvement bonds designated
City of Baldwin Park,. Improvement Bonds, Delta Assessment
District No. 86-2," in the principal amount of $1,625/000
the Bonds").
The Bonds represent unpaid special assessments
levied in the City's improvement district designated Delta
Assessment District No. 86-2" the District")/ are dated
August 15, 1986 and are issued as fully registered bonds in
the denominations of $5,000 each or any integral multiple
thereof.
Interest on the Bonds is payable semiannually on
March 2 and September 2 in each year, commencing on March 2/
1987, until maturity thereof.
The proceedings authorizing the formation of the
District were had and taken pursuant to the provisions of
the Municipal Improvement Act of 1913/ consisting of
Division 12 of the Streets and Highways Code of the State of
California/ commencing with Section 10000 the 1913
Act"). The Bonds are being issued pursuant to Resolution
No. 86-80 of the City, duly adopted on August 27, 1986 the
Resolution") and provisions of the Improvement Bond Act of
1915, consisting of Division 10 of the Streets and Highways
Code of the State of"California, commencing with Section
8500 the 1915 Act").
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1986 080 CC RESO ;¢fì ø ~ ! We have examined a certified transcript of
proceedings evidencing the authorization and issuance of the
Bonds/ the 1913 Act, the 1915 Act, the Resolution, the
Constitution of the State of California and such other
documents and statutes as we deem necessary to render this
opinion. We have not independently verified questions of
fact but have relied on the certifications of public
officials. We have generally reviewed the Official
Statement relating to the Bonds in its entirety, but express
no opinion as to the accuracy or completeness of any
financial, statistical or engineering information or table
contained therein,
Based on such examination, as of the date hereof,
we are of the following opinion:
1. The Bonds, representing unpaid assessments,
are validly issued under the provisions of the 1915 Act and
the Resolution.
2. The Bonds are valid special obligations of the
City, payable solely from the Redemption Fund as authorized
and designated in the Resolution), into which fund are
placed all sums received from the collection of installments
of principal and interest on the unpaid assessments. The
Bonds are enforceable pursuant to and in accordance with the
1915 Act.
3. Under existing statutes, regulations and
judicial decisions, interest on the Bonds is exempt from all
present federal income taxation and from present State of
California personal income taxation.
4. The rights of the bondholders and the
enforceability of the Bonds may be subject to bankruptcy,
insolvency, reorganization, moratorium and other similar
laws affecting creditors' rights, heretofore or hereafter
enacted. Enforcement of the Bonds may be subject to the
exercise of judicial discretion in accordance with general
principles of equity.
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1986 080 CC RESO ;¢fì ø ~ ! ADDITIONAL PROVISIONS OF THE BOND
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 the City under the Act,
the Resolution of Issuance and other proceedings of the City, for
the purpose of providing means for paying for the improvements
related to and arising out of the City of Baldwin Park, Delta
Assessment District No. 86-2" the District"), as described in
such proceedings, and is secured by the moneys in the Bond
Redemption Fund created and authorized under provisions of the
Resolution of Issuance), and by the unpaid portion of said
assessments made for the payment of said 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 the corporate trust office of Security Pacific
National Bank, in the City of Los Angeles, California, 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.
Neither the City nor the Fiscal Agent shall be required
to make such exchange or registration of transfer of Bonds for a
period commencing on the fifteenth day of the month next
preceding any interest or principal payment date.
The City and the Fiscal Agent may treat the owner hereof
as the absolute owner for all purposes, and the City and the
Fiscal 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), 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 sixty 60)
days * notice by first class mail to the registered owner hereof
at the owner's address as it appears on the registration books of
the Fiscal Agent and by paying the principal of and accrued
interest on such redeemed amount, together with a premium equal
to three percentum 3%) of the principal amount.
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1986 080 CC RESO ;¢fì ø ~!! I hereby certify that the following is a full and
correct copy of the signed legal opinion of GAAR & BELL/ Overland
Park, Kansas/ Bond Counsel, on file in my office, which opinion
is dated the date the Bonds referred to therein were delivered
and payment received therefor.
Director of Administrative
Services
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! Section 7. Execution; Authentication; and
Mutilated, Lost, Stolen or Destroyed Bonds.
a) Execution. The Bonds shall be signed by the
City Treasurer and the City Clerk, by manual or
facsimile signature, and the corporate seal of the City
shall be affixed to or reproduced on the Bonds. Such
signatures and corporate seal may be reproduced on the
Bonds by engraved, printed or lithographed facsimile
thereof, and such signing and sealing shall constitute
and be a sufficient and binding execution of each and
every one of the Bonds. If any officer whose signature
or countersignature appears on the Bonds ceases to be
such officer before the delivery of the Bonds to the
purchaser, such signature or countersignature shall be
as valid as if such officer remained in office until the
delivery of the Bonds.
b) Authentication. The City shall execute and
deliver to the Fiscal Agent and the Fiscal Agent shall
authenticate the Bonds on registration and/or exchange
to effectuate the registration and exchange provisions
set forth herein, and only such of the Bonds as shall
have endorsed thereon a certificate of authentication,
substantially in the form set forth in Exhibit B, duly
executed by the Fiscal Agent, shall be entitled to any
rights/ benefits, or security under this Resolution. No
Bonds shall be valid or obligatory for any purpose
unless and until such certificate of authentication
shall have been duly executed by the Fiscal Agent, and
such certificate of authentication of the Fiscal Agent
upon any such Bond shall be conclusive and the only
evidence that such Bond has been duly authenticated and
delivered under this Resolution. The Fiscal Agent's
certificate of authentication on any Bond shall be
deemed to have been duly executed if signed by an
authorized officer of the Fiscal Agent, but it shall not
be necessary that the same officer sign the certificate
of authentication on all of the Bonds that may be issued
hereunder at any one time.
c) Mutilated, Lost, Stolen or Destroyed Bonds.
In the event any Bond is mutilated, lost, stolen or
destroyed, the City may execute and the Fiscal Agent may
authenticate and deliver a duplicate Bond of like
series, date, maturity and denomination as the
mutilated, lost, stolen or destroyed Bond, to the holder
of the Bond as shown on the Bond Register; provided
that, in the case of any mutilated Bond, such mutilated
Bond shall first be surrendered to the Fiscal Agent, and
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