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HomeMy WebLinkAbout1986/08/06 - Agenda Packet - RDAy CITY OF RANCHO CUCMfQNOA PLEDEVELOPME..NT AGENCY AGENDA 1977 Lions Park Community Center 9161 Ease Line Road Rancho Cucamonga, California Aygaat 6. 1986 - I.nn - �. rs.t. ro Onnae 1. Roll Call: Mikels _, DuSuat _, Ring Dahl —, and Wright _. E. d lfi =T CALMMI The follomiag Count Calendar itsr "a expected to be routine and wm- eeatrovaraial, They rill be acted upon by the REA at one tier •Lthcat discussion. 1. Approval to receive and file current Invesca mt Schedule as of July 31, 1986. 2. Approval to adopt a Resolution authorising the issuance of $32,343,000 principal owner of Rancho Cucamonga Redevelopment project tar ollocation bonds, 1986 series A. awarding the sale of such bonds and providing other matters properl7 relating thereto. RESOLUTION $0. RA 86 -07 A RESOLUTION OF THE RANCHO CUCAMONGA REDEVELOPMENT AGENCY, AUTHORIZING TED ISSUANCE OF $32.345,000 PRINCIPAL AMOUNT OF RANCHO REDEVELOPMENT PROJECT TAE ALLOCATION BON". 1986 SERIES A. AWARDLNO TBE SALE OF BUS E SODS AND PROVIDING OIam HITTERS FAiiSeLY RELLTING THERETO C. IONLIC AIMMA NONE 305MITTED HDEE HUIMITTED 1 3 4 r a: •a -.s t. t' r CITY Or RANCHO CUCAMOM REDEVELOPMENT AGENCY MEMORANDUM DATE: July 31. 1986 T0: Chairman end Members of the Udevelopeent Agency PROM: Jim Bart, Treasurer SOOJECT: Receive and Pile - Rancho Cucamonga Redevelopment Agency Investmaat swam„ Schedule Status Report CUCLMnNGA REURVELOPNEIT as of July 31, AGENCY 1986 INVESTMENT a PBRCRASE "ULE 8 ATUI MATURITY RBPM IBT129ST INSTITUTION DATE DATE -J=L- LAID 02/28/86 as needed 1,900,000.00 08.420 LAID 02.28.86 as nead -d 3,100,000.00 08.420 Great Western 06106/86 12/29/86 1,180,291.25 07.050 Great Western 07108/85 08/07/86 500,000.00 06.750 First Trust Bank 04/07186 04/07/87 n00,000.00 06.600 Suavest Bank 07/22/86 09/19/86 100,000.00 06.100 Royal Oaks S 6 L 04/23/86 11/19/86 100,000.00 07.375 Coast S&L 04/23/86 10/20/86 100,000.00 07.125 Westport Savings 04/23/86 10/20/86 100,000.00 07.625 Security Federal u4/23/86 10/20/86 100,000.00 07.200 Eastern 86L 04/23/86 10/20/86 100,000.00 06.750 Mercury S&L 04/24/86 11/24/87 100,000.00 07.250 Mutual S&L 04/24/86 01/23/87 100,000.00 07.000 Bolden Pacific 04124/86 11/07/86 100,000.00 06.750 Secure S&L 04/24/86 04/24/87 100,000.00 08.000 County Uavipgs Bank 04/24 -86 04/24/87 100,000.00 07.875 Lincoln As B4L 04/24/86 12/19186 100,000.00 07.700 Bank of America 04/28/86 04/28187 500,000.00 06.775 Glendale Federal 04128/86 12/12/86 100,000.00 07.250 Crockar Mat. Bark 04/29/06 06/30/86 500,000.00 06.100 First Federal Sav Bank 04/30/86 04/30/87 100,000.00 07. /UO Centurion Savings 04/30/86 11/27/86 100,000.00 07.125 lI n Bel Air S&L 05/20/06 09/05/86 100,000.00 07.500 Cal America SAL 03/20/86 05/20/57 100.000.00 08.150 taeloo 8SL 05/20/86 05/20/87 100.000.00 117.750 Santa Paula S&L 05/20/86 12/05/86 100.000.00 07.250 Great Pacific S&L 05/23/04 05/26/87 100,000.00 07.875 Brookside S&L 05/23/86 03;26/87 100.GGv.00 07.900 Great Western SSL 06116/86 12/12/96 500.000.00 06.850 Great Western 861, 06/16/86 03/13/87 500,000.00 06,950 Pazifie Savings Bank 06/13/06 06/15/87 500,000.00 07.500 Community Beak 07/01/86 12/29/86 500,000.00 06.850 Bat Bank of Catalina 07/11/86 01/07/87 100,000.00 06.250 Bouthvmat Bank 07/11/86 07/13/87 200,000.00 07.659 As of 6/25/86 Grand Total 12,588,291.25 CITY OF RANCHO C' REDEVELOPMENT STAFF REPORT DATFs August 6, 1986 TO: Chairman and Members of the Agency Board FROMt Jack Lam, AICP, Deputy Executive Director BY: Linda D. Daniels, Senior Redevelopment Analyst SUBJECTt RESOLUTION AUTHORIZING THE ISSUANCE IMF 32 345 000 TAX A F BACKGROUNDt The Redevelopment Agency has prepared s bond program which is sc u e to c ose on August 28, 1986. In order to complete the sole of the bonds It Is necessary for the Agcncy to adopt a final Resolution authorizing the issuance of the 1986 - Series A Tax Allocation Bonds. Bids have been submltttd for the purchase of the Bond program. Staff has accepted the most competitive bid, as was authorized by the Agency, submitted by Shearson - Lehman. The net effective Interest rate for the Bond program Is 7.76 %. The Issue was able to obtain Insurance from the Financial Guaranty Insurance Company WGIC). This Insurance commitment Is ecor mlcolly beneficial to the Issue In two ways. The first Is that it reduced the amount of the bond discount from 3% to 2 %. This saved approximately $325,000. More Importantly the Insurance reduces the debt service payments and the financial consultant has calculated that the Agency should save, in present dollar values, cpproxlmately $4.5 million EVALUAIIONt Bond Counsel has prepared the necessary Resolution which, when a pte byte Agency, will authorize the Issuance of the 1986 - Series A Tax Allocation Bonds. The Resolution will also award the •ale of she bonds to Shearson - Lehman based on their bid submittal. RECOMMENDATIONS Adoption of the attached Resolution authorizing the Issuance of t gency's - cries A Bond Issue. Deputy Executive Director JL /LD /kop attachments Resolution 9 r" ' 20000 -5 _ JHHW:ACH:ea 06/15/86 ea 07/05/86 ea 07/30/86 RESOLUTION NO. RA &-Qr% RESOLUTION OF 1HE RANCHO CUCAMONGA REDEVELOPMENT AGENCY, AUTHORIZING, THE iSSUANCC OF $32,345,000 PRINCIPAL AMOUNT OF RANCHO REDEVELOPMENT PROJECT TAX ALLOCATION BONDS, 1986 SERIES A. AWARDING SALE OF SUCH BONDS, AMENDING RESOLUTIONS NOS. RA 83 -07 and RA 84 -01 AND PROVIDING OTHER MATTERS PROPERLY REIATING THERETO (1986 SUPPLEMENTAL RESOLUTION) WHEREAS, the Rancho Cucamonga Redevelopment Agency is a redevelopment agency, a public body, corporate and politic, duly created, established and authorized to transact business and exercise powers under and pursuant to the provisions of the Community Redevelopment Law of the State of California, including the power to issue bonds for any of its corporate purposes; WHEREAS, the Agency has by its Resolution No. RA 83 -07, adopted October 19, 1983 (the 'General Resolution "), duly duthorizod the issuance in series of Its Rancho Redevelopment Project Tax Allocation Bonds, in the aggregate principal amount of not to eRceed $25,000,000; WHEREAS, the Agency has by its Resolution No. RA 84 -01, adopted March 19, 1984 (the 41984 Series Resolution'), duly provided for the issuance of its Rancho Redevelopment Project Tax Allocation Bonds, 1984 Series A in the aggregate principal amount of $7,750,000 (the 01994 Bonds'); WHEREAS, the Agency's Financing Consultant, Stone 6 Youngberg, has caused a final OrfiClal Statecent, dated August , 1086, relating to the bonds, to be submitted to and for approval by the Tigency for distribution to the purchasers of the Bonds; WHEREAS, pursuant to Resolution No. RA 86 -05, adopted July 2, 1986, calling 'or bids on the Bonds and and directing the preparation and publication of an Official Notice of Sale therefor, the hereinafter named purchaser has submitted the highest responsible bid for the purchase of the Bonds and the Bonds were awarded to such purchaser by the Executive Director of the Agency on the terms and conditions provided in Resolution No. RA 86 -05; WHEREAS, the Official Notice of Sale is on file in the proceedings and has been duly published; WHEREAS, it is desirable at this time to provide for the issuance of an additional series of bonds on a parity with the 1984 Bonds, in the aggregate 0 ? R principal amount of $32,34S,u00 (the 01986 Bonds") upon compliance by the Agency with the provisions and subject to the conditions set forth in Resolution No. RA 86 -05; and WHEREAS, the hereinafter named insurer of the payment of principal of and interest on the 1986 Bonds has, as a condition to the issuance of its Insurance policy, required the amendment of certain provisions of Resolutions Nos. RA 83 -07 and RA 84 -01 and the ordering of such amendments by the Agency is in the best interests of the Agency and such amendments will confer additional rights, remedies, powers or security upon the Fiscal Agent for the benefit of the Holders of the 1986 Bonds and the 1984 Bonds, as permitted by Section 23 of Resolution No. RA 83 -07; NON, THEREFORE, BE IT R:SOLVED by the Rancho Cucamonga Redevelopment Agency, as follows: -2- 3 A t ARTICLE I AUTHGRIZA ;ION Of 8OADS; DEFiNITIONS GeneSection 1.01. 1986 Su ltmental Resolution- Determinations. This 1986 aleResoiuti o�utloTliesAge^c1eNe� rbytdaterminestthat itodoesons of the sufficient moneys evadable from the proceeds of the bonds issued under the Resolution the RedevelopmentProject, and that: the Issuancecof addit onalebondssr fof that Purpose is necessary and desirable. Redevelopment to be financed with the Proceeds of the 1986 Bonds constitutes °redevtlopment activity within the meaning of Section 33678 of the taw. Section i ten n terms are tSection the enera esoiu, a amended bSection Of 1984 Series Resolution, shall have the Salle meanings, respectively, in this 1986 Supplemental Resolution. Unless the cntext otherwise requires, the terms Resolutionnhavestheemeanings herninrSpeclit.1ed oses of this 1986 Supplemental 4nnual Debt Service 'Annual Debt Service• means, for each 12 -month period ending on etch May 1, the sum of (1 the interest payable on the outstanding 1984 Bonds and 1986 Bonds ndln su190t128oronthaperiod ending on each May 1, assuming that the Principal amw:nt of the Outstanding Bonds 1984 Bonds and 1986 aBondshpayabl (2) the terms to such 12 -month Periud ending on each May 1, excludingablredemption their premiums, if any, thereon. "Maximum t ,al Debt Service" means the largest Annual nebt Service during the period from the date of the 1984 Bonds and 1986 Bonds through the final maturity date of any autstamling 1984 Bonds and 1986 Bands. Bond Insurer stock insuratceucorpo ation,Fandnanylsuccessor thereto,eAs then Insurereofythe Payment of the principal and interest of the 1986 Bonds. 1984 Bonds '1984 Bonds- means the $7,750,000 principal arount of Rancho Redevelopment Project Tax Allocation, 1984 Series A. authorized by and at any time outstanding pursuant to the General RRSelution and the 1984 Series Resolution. 1986 Bonds '1986 Bonds' Redevelopment Project Tax nAllocation B nds,0010g86pSeriesaA authorized ed by and at any time outstanding pursuant to the General Resolution and this 1986 Supplemental Resolution. -3- 6 Costs of Issuance 'Costs of Issuance' means items of expense payable or reimbursable directly or indirectly by the Agency from moneys in the Redevelopment Fund ind relat,d to the authorization, sale and issuance of the 1986 Bonds, which items of expanse shall include, bu) not be limited to the pa,finent of the premium of the Bond Insurer for issuance of its Municipal Bond Insurance Policy, printing costs, casts of reproducing and binding documents, closing costs, filing and recording fees, initial fees and charges of the Fiscal Agent, expenses incurred by the Agency in connection with the issuance of the 19B6 Bands, Bond (undentriter's) discount, legal fees and charges, including bond ccunsel and special tax counsel, professional consultants' fees, including financial consultant fees, costs of credit ratings, charges for execution, transportatinn and safekeeping of the 1986 Bonds and other costs, charges and fees in connection with the foregoing. General Resolution 'General Resolution" mears Resolution No. R.A. 83 -01, adopted by the Agency an October 19, 1983, as and to the extent thereafter amended. Municipal Bond Insurance Policy *Municipal bond Insurance Policy" means the Municipal Bond New Issue Insurance Policy issued by the Bond Insurerguaranteeing the scheduled payment of principal and interest on the 1986 Bonds or the municipal bond insurance policy or guaranty (or other appropriate designation) issued by the insurer of any Additional Bonds, as applicable. 1984 Series Resclution 81934 Series Resolution" means Resolution No. 84 -01, adopted by the Agency on March 19, 1984, under the Law and pursuant to the General Resolution. 1986 Supplemental Resolution °1986 Supplemental Resolution" means this Resolution No. adopted by the Agency on August 6, 1986, under the Law and pursuant to t'Fie General Resolution. Section 1.03. Due Authorization. The Agency has reviewed all proceedings hereto ore Haken re at ve to the authorization of the 1986 Bonds and has found, as a result of such review, and does hereby find and determine, that the Agency has duly and regularly complied with all applicable provisions of law and the General Resolution and is duly authorized by law and the General Resolution to issue the 1986 Bonds in the manner and upon the ternis in the General Resolution and this 1986 Supplemental Resolution provided and that all acts, conditions and things required by law and the General Resolution to exist, happen or be performed precedent to rod in connection with the issuance of the 1986 Bonds do exist, have happened and have been performed in regular and due time, form and manner as required by law and the General Rcsolution, and the Agen ^y is now duly empowered, pursuant to each and every -equirement -4- 7 of law and the General Resolution, to issue the 1986 Bonds in the manner and farm provided in the General Resolution and this 1986 Supplemental Resolution. i P, I e ARTICLE II 1986 Bonds Section 2.01. Authorization and Terms of 1986 Bonds. A secorsi series of bond to be issuud under the enF nErnTResoTition, i -r [Fe aggregate principal amount of Thirty Two Million Three Hundred Forty -Five Thnusand Dollars ($32,345,OCO). 1s hereby created and shall be designated the 'Rancho Redevelo {went Project Tax Allocation Bonds, 19,16 Series A.' The 19116 Bonds shall mature and become payable on May 1 in each year, as follows: Maturity Prtnc.pal Maturity principal May 1 Amount May L Amount 1987 S 360,000 199: E 560,000 1988 375,000 1996 600,000 1989 395,000 1997 640,000 1990 415,000 1998 690,000 1991 435.000 1999 740,000 1992 465,000 2000 790,000 1993 490,000 2001 850,000 1994 525,000 2002 915,000 2016 23,100,000 The 1986 Bonds shall be dated as of August 1, 1986, and shall bear interest at the rates set forth in proposal of the Purchaser of the 1986 Bonds, as awarded ny the provisions of Section 3.02, payable on May 1, 1907, and thereafter semiannually on November 1 and May 1 in each year, all as provided in the General Resolution. The 1986 Bonds shall be subject to redemption as provided in Section 2.03 of this 1986 Supplemental Resolution. Section 2.02. Form and Execution of the 1906 Bonds. The fully registered onds and the forms of sca g—cnt s Bert If cote of auth-!nticatinn and assignment to appear thereon shall be substantially in the following form with necessary or appropriate variations, omissions and insertions, as permitted or required by the General Resolution or this 1986 Supplemental Resolution. -G- 9 I (FORM OF FULLY REGISTERED 1986 BOND) UNITED STATES OF AMERICA STATE OF CALIFORNIA COUNTY OF SAN BERNADINU RANCHO RANCHO REDEVELOPMENT PROJECTETAXNALLLOCATiON BOND, 1986 SERIES A INTEREST RATE: MATURITY DATE: DATED DATE: 1986 CUSIP; August 1, REGISTERED OWNER: PRINCIPAL SUN: DOLLARS Politic, RANCHO anized A REDEVELOPMENT AGENCr, a public body . duly organized and existing under and by virtue of the laws to the State of California (the •A en Y, corporate and I the Registered Owner stated above or assigs, on the Naturlty Date stated above, hereby promises to pay Provided For), tl.2 Principal Sum statedsabove, in ofhthelUnited States of America, and to pay interest thereon in like lawful money from the Interest payment date next preceding the date of alikenlawf lon of this Bond (unless (f) this Bond 1s authenticated on an interest event it shall bear interost from such date of authentication, or (11) thi; Bond is authenticated prior to an Interest P"nt date, in which business on the fifteenth day n the month Preceding date and after the close of drte, in which event it shall bear interest from such interest Payment of ll be this Bond is authenticated prior to A 1987, date. shall bear interest from the Dated Date stated above P which event date, if, et the time of authentication of this Bond 1n which event tt Bond, this Bond sha 1 Dear Interest from the interest Payment isIed, fault r, this . interest 1s en default an this interest has prevlouslY been paid or made available for until Payment of suc, P Yment date to which above, payable semi ennuallyco�41 Sum in full, at the rate per Onn this Bond) May 1, months. calculated on the basis of a 350 da November ' in each ear commencing day months. Principal hereof and Yed of ear. elve 3 hereof are payable principal corporates trust off, ce` o oearl redempti n National Trust and Savings Association (the "Fiscal Agent-). Of early f America Interest hereon (including maturity California. a. earlier reaomptlon) in 0 rest Lo; Angeles, Agent walled to the Registered) I hereof b the Re Or payment upon payable t check or draft of the Fiscal as It appears on the registration books maintained by the Fiscal Agent at the close of business on the fifteenth d 9 Owner's address interest payment date, or at such other address as month the Registered Owner may have filed with the Fiscal Agent for that purpose. preceding such _7_ A) REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS BOND SET FORTH ON THE REVERSE HEREOF WHICH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH IN THIS PLACE. It is hereby certified that ail of the thiegs, conditions and acts required to exist, to have happened or to have peen performed precedent to and In the issuance of this Bond do exist, have happened and have been performed in due and regular time, form and manner as required by the Law (as hereinafter defined) and the laws of the State of California, and that the amount of this Bond, together with all other indebtedness of the Agency, does not exceed any limit prescribed by the Law or any laws of the State of California, and is not in e•cess of the amount of Bonds permitted to be issued under the General Resolution and the 19e6 Supplemental Resolution (both as This Bond shall not be entitled to any benefit under the General Reso' Ion and the 1986 Supplemental Resolution or become valid or obligatory for any purpose until the Certificate of Authentication hereon shall have been signed by the Fiscal Agent. IN WITNESS WHEREOF, the Rancho Cucamonga Redevelopment Agency has caused this Bond to be executed in its name and on Its behalf by the facsimile signature of its Chairman and its seal to be reproduced hereon and attested by the facsimile signature of its Secretary, all as of August 1, 1986. (SEAL) ATTEST: Secretary eta ary RANCHO CUCAMONGA REDEVELOPMENT AGENCY By -8- rman M r� c- (FISCAL AGENT'S CERTIFICATE OF AUTHENTICATION This is one of the 1986 Bonds described In the within - mentioned 1986 Supplemental Resolution. EXECUTION DATE: SAVINGS ASSOCIATION. as Fiscal Agent By: ut or ze cer -9- [REvrRSE SIDE OF BOND] This Bond is one of a duly authorized issue of Bonds of the Agency designated as the *Rancho Cucamonga Redevelopment Agency Rancho Redevelopment Project Tax Allocation Bonds, 1966 Series A• (the •Bonds•), of an aggregate principal amount of Thirty Two Million Three Hundred Forty -Five Thousand Dollars ($32,345,000), all of like tenor and date (except for such variation, if any, as may be required to designate varying numbers maturities, interest rates or redemption provisions) and all issued pursuant to the provisions of the Community Redevelopment Law, being Part 1 (commencing with Section 33000) of Division 24 of the Health and Safety Code of the State of California (the •Law•) and pursuant to Resolution No. RA 81 -37, adopted by the Agency on October 19, 1983 (tne "General Resolution•), aed pursuant to Resolution No. of the Agency adopted on August 6, , (the 01906 Supplemental Nution•) authorizing the issuance of the Bon. The Agency has heretofore issued bonds In the aggregate principal amount of Seven Mllllon Seven Hundred and Fifty Thousand Dollars ($1,750,000) (the 01984 Bonds ") pursuant to the General Resolution. The 1986 Bonds are issued on parity with the 1984 bonds. Additional bonds, notes or otter obligations, r4y be issued on a parity with the 1984 Bonds and the 11986 Bonds, but only subject to the terms of the General Resolution, the 1984 Series Resolution and the 1986 Supplemental Resolution Reference is hereby made to the General Resolution, the 1984 SLries Resolution and the 1986 Supplemental Resolution (copies of which are on file at the office of the Agency and all resolutions 19e6 Series thereto and to the Law for a description of the terms on which the 1986 Bonds are issued, the provisions with regard to the nature and extent of the Pledged Tax Revenues, as that term is defined in the General P.asolution and the 1984 Series Resolution, and the rights thereunder of the Registered Owne -s of the 1986 Bonds and the 1984 Bonds and the rights, duties and Immunities of the Fiscal Agent and the rights and obligations of the Agency thereunder, to all of the provisions of which General Resolution, 1984 Series Resolutioi and 198E Supplemental Resolution the owner of this Bond, by acceptance hereof, assents and agrees. The 1986 Bonds and the 1984 Bonds have been Issued by the Agency to aid in financing the redevelopment of Rancho Redevelopment Project, a duly designated redevelopment area in the City of Poncho Cucamonga, California. The Bonds are are special obligations of the Agency and this Bond and the interest hereon and all other Bonds and the interest therein (to the extent set forth in the General llesolutinn) are payable from, and are secured by a first and exclusive pledge on the Pledged Tax Revenues (as such term to defined in the General Resolution), all as more particularly set forth in the General Resolution and the 1996 Supplemental Resolution. The Agency hereby covenants and warrants that, for the payment of this Bond together with 411 otter 198E Bonds ,:nd the 1984 Bonds, and interest thereon whan due, tnere has bc..;..- seated and will bo maintained by tie Fiscal Agent in Los Ange'ei, California. a Special Fund (as defined in th_ General Resolution) into wi•ich all said Pledgel Tax Revenues shall be deposited to p'lY the principal of the 1996 Bonds trV the 19b4 Bonds when due, and to Nay interest on the 1981 Bonds and thn :984 Bonds when due. and as at. Irrevocable charge the Agency his allocated said Pledged Tax Revenues solely to the -in /_5 'J payment of the 1986 Bonds and the 1984 Bonds and will pay promptly when due the principal of and interest on this Bond and all other 1986 Bonds and the 1984 Bonds out of the Special Fund, all in accordance with the terms hereof and the provisions set forth in the General Resolution and the 1986 Supplemental Resolution. This bond is not a debt of the City of Rancho Cucamonga, the State of California, or any of its political subdivisions, and neither said City, said State, nor any of its political subdivisions 1s liable hereon nor in any event shall this Bond be payable out of any funds or properties other than those of the Agency. The Bonds do not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction. The 1986 Bonds maturing on or before May 1, 1993, shall not be subject to optional redemption btfore their stated maturity. The 1986 Bonds maturing on or after Mdy 1, 1994, are subject, at the option of the Agency, to call and redemption prior to their stated maturities on any Hay 1 or November 1, comrencing May 1, 1993, as a whole or in part, in inverse order of maturity and by lot within a maturity, upon payment from any source of funds available for that purpose of the principal amount thereof and accrued interest thareon, together with a premium as shown in the following schedule (computed upon the principal amount of 1986 Bonds called for redemption) if redeemed on interest payment dates during the following years: Year of Redemption Premium 1993 2 -1 12% 1994 2 1995 1 -1 /2 1995 1 1997 112 1999 and thereafter 0 Sinking Account Redemption Bonds maturing May 1, 2016 (the 'Term Bonds°) are subject to manaatory reoa�ution In part from sinking account installments nn May 1, 2093, and on each May 1 thereafter up to and including May 1, 2015, at a redemption price eoual to 100% of the principal amount thereof plus accrued lnte•est, if any to the redemption date, without premium. The following sinking account Installments are calculated to be sufficient to redeem the following principal amount of Terms Bends: Maturity Principal Maturity Princlpal May 1 Amount May 1 Amount 2003 $ 985,000 2010 $1,640,000 2004 1,060,000 2011 1,760,000 2005 1,140,000 2012 1,895,000 2006 1,225,000 2013 2,040,000 2007 1,320,000 2014 2,195,000 2008 1,420,000 2016 2,360,000 2009 1,525,000 2016 (Maturity) 2,535,000 _11- /V 9 redemption shall be mailed AnoplessdthannthirtyG(30) days nortmore thancsixty (60) days prior to the redemption date to the respective registered owners of arty 1986 Bonds designated for redemption at their addresses appearing on the bond registration books maintained by the Fiscal Agent, but neither failure to mall such notice nor any defect In the notice so mailed shall affect tl +e sufficiency of the proceedings for redemption. If therefor as specified 1n called General redemption solution, pinnterestisshally rue dto accrue hereon from and after the date fixed for redemption. The the 1986 provisions of upplement i Resolution l halluconstitute 19a4contractebetweenn the Agency and the Bondholders and the provisions thereof shall be enforceable by any Bondholder for the equal benefit and protection of all Bondholders similarly situated by mandamus, accounting, mandatory injunction or any other suit, faction or proceeding at law or in equity thrt 1s now or may hereafter be authorized under the laws of Che State of California. The 1986 Bonds are issuable and as fully registered 1986 Bonds without coupons in denominations of $5,000 and any authorized integral multiple thereof. Subject to the limitations and conditions and upon payment of the cnarges, if any, as provided in the General Resolution, 1986 Bonds may be exchanged for a like aggregate principal amount of other authorized denominations of the same maturity. Registration of this Bond 1s transferable by the registered owner hereof, In person or by an attorney duly authorized in writing, at said office of the Fiscal Agent, but only in the manner, subject to the limitation and surrender erand of charges incellationof th is v isBond.1 P General Resolution, and Uponr gictrationofsuchtransferoa new fully registered Bond or 1986 Bolls, of authorized denomination or denominations, for the same aggregate principal amount and of the same maturit Fiscal e; , -be Issued to the transferee in exchange herefor. The Agency and ^nt bay treat the registered owner hereof as the absolute owner hereof for all purposes, and the Agency and the Fiscal Agent shall not be affected by any notice to the contrary. The rights and obligations of the Agency and of the Registered Owners of the 1986 Bonds may be modified or amended at any time in the manner, to the extent and upon the terms provided in the General Resolution and the 1986 Supplemental Resolution, but no such modification or amendment shall reduce the principal amount hereof, reduce the interest rate hereon, extend the maturity hereof or the times for paying interest hereon, change the monetary medium in wnlch principal hereof and interest hereon are payable, or reduce the percentage of consent required for amendment or modification, without the express consent of the Registered Owner of this Bond; all as more fully set forth in the General Resolution and the 1986 Supplemental Resolution. -12- /5 F" ■ ■ ABBREVIATIONS The following abbreviations, whe% wed in the inscription on the face of the within Note, shall be construed a: though they were written out in full according to applicable laws or regulations: TEN CON -- as tenants in com wn L'NIF GIFT MIN ACT Custodian TEN ENT -- as tenants by the entireties (Gust) JT rEN -- as joint tenants with (Minor) right of survivorship under Uniform Gifts to Mir;irs and not as tenants in Act common (State) ADDITIONAL ABBREVIATIONS HAY ALSO 9E USED THOUGH NOT IN THE LIST ABOVE (FORM OF STATEMENT OF BOND INSURER) -13- . y<, yy' [FORM OF ASSIGNMENT) For value received the undersigned hereb, sells, assigns and transfers into the within - registered Bond and hereby irrevocably constitutes) and appoints(s) attorney, ethe the b IR reg ster of the sca gent with full goner of substitutihn t Dated:— on he s gnature s on th s Assignment must correspo cnwith written the name's ) as the face of the within Bond in every particu'ar without aalterat`on or enlaro,:•ment or whatsrever. Signature Guaranteed: gnoture s must be guaranteed by a member Exchangethortl o a commercial bank or trust company. Section 2.03. Terns of Redemption of 1986 Bonds. (a) 0 tional Redem tion. The 1986 Bonds maturing on or before May 1, before 1993, shal The1986eBondsematuringoanioraafter May 1. 194, arehsub,lect8tat maturity the option of the Agency. to call and redemption P1993, as a whole or in maturities on any May 1 or November I commencing May '., part, in inverse order of maturity and by lot within a maturity, upon payment from any source of funds available for that purpose of the principal amount in the thereof and accrued interest thereon, together with a premium as shown called following schedule (computed upon the principa� tad 6 Bonds dates duringthefollowing " for redemption) if redeemed on interest p&YIN years: -14- Viz• -- - -. -- 1 G ' J Year of Redemption Premium �r 1993 1994 2 1995 1 -1/2 1996 1 1997 1/2 „ 1998 and thereafter 0 i Sinking Account Redemption Bonds maturing May 1, 2016 (the "Ten Bonds ") are subject to mandatory redemption in part from sinking account installments on Ilay 1, 2003, and on ;- each May I thereafter up to and including May 1, 2015, at a redemption price equal to 100% of the principal amount thereof plus accrued interest, if any to the redemption date, without premiL-. The following sinking account �• Installments are calculated to be sufficiert to redeem the following principal I, amount of Terms Bonds: Maturity Principal Maturity Principal May 1 Amount May 1 Amount 2003 S 985,000 2010 $1,640,000 2004 1,050,000 2011 1,760,000 2005 1;140,000 2012 1,895,0GO a, 2006 1,2 ?5,000 2013 2,040,000 2007 1,210,000 2014 2,195,000 >' 2008 1,420,000 2015 2,360,000 2009 1,525,000 2016 (Maturity) 2,535,000 t (c) Subject to General Resolution. Except as otherwise provided to this Section, the manner an method of the redemption of the 1986 Bonds shall a be subject to the provisions of the General Resolution regarding redemption of the registered 1984 Bonds, with the same force and effect as if set forth herein in full. Section 2.04. Bond Insurance Provisions Relatin to 1986 Bonds. v �A-j- If, on toe th rd Bus mess ay next priced ng any interest Payment Oate, there is not on deposit In the Principal Account, Interest Account and Sinking Account sufficient moneys available to pay all principal of and interest on the 1986 Bonds due on sach date, the Fiscal Agent for the 1986 Bonds shall immediately notify the Bond Insurer and its designated fiscal + agent (the "Fiscal Agent for the Bond Insurer•) of the amount of suc. dei lency The Fiscal Agent for the 1986 Bonds shall simultaneously make avar.able to the Band Insurer and to the Fiscal Agent for the Bond Insurer the registration books of the Agency maintained by the Fiscal Agent for the 1986 Bonds. " (1) The Fiscal Agent for the 1986 Bonds shall provide the Bond Insurer with a list of the Bondholders entitled to receive principal or interest payments from the Bond Insurer under the terms of its Municipal Bond Insurance Policy, and shalt make arrangements with the Bond Insurer and itc r: Fiscal Agent (1) to mail checks or drafts to Bondholders entitled to receive 4k. -IS- fell or partial interest payments from the Bond Insurer and (2) to pay principal of the Bonds surrendered to the Fiscal Agent for the Bond Insurer by the Bondholders entitled to receive full or partial principal payments from the Bond Insurer. (ii) The Fiscal Agent for the 1986 Bonds shall, at the time It provides notice to the Bond Insurer pursuant to subsection (A) above, notify Bondholders entitled to receive the payment of principal of or interest on the Bonds from the Bond Insurer (1) as to the fact of such entitlement, (2) that such Band Insurer will remit to them all or a part of the interest payments next taming due, (3) that, except as provided in subsection (B) below, in the event that any Bondholder is entitled to receive full payment of principal from the Bond Insurer, such Bondholder must tender his Bond with the instrument of transfer in the form provided on the 1986 Bond executed in the name of the Bond Insurer, and (4) that, except as provided in subsection (B) below, in the event that such Bondholder is entitled to receive partial of principal from the Band Insurer, such must tender his Bond for payment first to the Fiscal Agent for the 1926 Bonds which shall note on such Bond the portion of principal paid by the Fiscal Agent for the 1986 Bonds, and then, with the form of transfer executed in the name of the Bond Insurer, to the Fiscal Agent for the fond Insurer, which will then pay the unpaid portion of principal to the Bondholder. (B) In the event that the Fiscal Agent for the 1986 Bonds has r.ctual notice that any payment of principal of or interest on a Bond has been recovered from its Bondholder pursuant to the United States Bankruptcy Code by a trustee in hankruptcy in accordance with the final, nonappealable order of a court having competent Jurisdiction, the Fiscal Agent for the 1986 Bonds shall, at the time it provides notice to the Bond Insurer, notify all Bondholders that in the event that any Bondholder's payment is so recovered, such Bondholder will be entitled to payment from such Bond Insurer to the extent of such recovery, and the Fiscal Agent for the 1986 Bonds shall furnish to such Bond Insurer its records evidencing the payments of principal of and interest on the Bonds which have ,.een made by the Fiscal Agent for the 1986 Bonds and subsequently recovered fro-i Bondholders, and the dates nn which such payments were made. (C) The Bond Insurer shall, to the extent it makes payment of principal of r- interest on the 1986 Bonds, become subrogated to the rights of the recipients of such payments in accordance with the terms of the Municipal Bond Insurance Policy, and, to evidence such subrogation, (1) in the case of subrogation as to claims for past due irterest, the Fiscal Agent for the 1966 Bonds shall rote such Bond Insurer's rights as subrogee on the registration books maintained by the Fiscal Agent for the 1986 Bonds upon receipt from the Band Insurer proof of the payment of interest thereon to the owners of the 1986 Bonds, and (2) in the case of subrogation as to claims for past due principal, the Fiscal Agent for the 1986 Bonds shall note such Bond Insurer's as subrogee on the registration books of the Agency maintained by the Fiscal Agent for the 1986 Bonds upon receipt of p -oof of the payment of principal thereof to the Bondholders of such Bands. -16- ARTICLE III 1986 Bonds Section 3.01. Sale and Issuance of 1986 Bonds. The Agency nay sell and deliver 9 Bons n an aggregate pr nc pa amount of Thirty Two Million Three Hundred Forty -Five Dollars ($32,345,000) Section 3.02 Award of 1986 Bonds. The award by the Executive Director of the 85 Bons to hearso� n Leaman /American Express (the 'Purchaser'), as the highest responsible best bidder for the Bonds, is hereby approved and confirmed. The 1986 Bonds shall be delivered to the Purchaser upon compliance with the terms and conditions set forth in Resolution No. 86 -05, including the Official Notice of Sale of the 1986 Bonds and the accepted bid of the Purchaser. The Official Notice of Sale is hereby approved as published and or file In the proceedings. The Chairman and Vice Chairman of the Agency, the Secretary of the Agency, the Executive Director of the Agency, the General Counsel and other pr -rier Officers of the Agency are hereby authorized and directed to deliver ary dod all documents and instruments, to authorize the payment of Costs of Issuance as defined and provided in the 1986 Supplemental Resolution) and to do and cause to be done any and all acts and things necessary or convenient for delivery of the 1986 Bonds to the Purchaser. Section hereby approve3 and tie lcha Official lot Statement. the Agency h shall cause the execution of the final Official Statement relating to the 1986 Bonds, setting forth such amendments and supplements thereto, as shall be necessary or convenient to accurately describe the 1986 Bonds in accordance with the General Resolution and this 1986 Supplemental Resolution. the Trust Indenture, the accepted proposal of the Purchaser of the 1986 Bonds and the other related agreements and documents. Section 3.04. Application of Proceeds of Sale of 19fi6 Bonds. Upon the receipt 0 payment for the 19 Bonds when t e same sae have been sold by the Agency, the proceeds from such sale shall be paid to the Fiscal Agent, who shall forthwith set aside and deposit such proceeds in the following respective funds in the following order of priority: (1) The Fiscal Agent shall set aside in the Special Fund established pursuant to Section 13 of the General Resolution the amount of interest accrued on the 1986 Bonds from the date of the 1986 Bonds to the date of delivery of the 1986 Bonds received from the purchasers of the 1966 Bonds. ") The Fiscal Agent shall set aside in the Reserve Account in the Special Fund an amount which, together with the balance then on deposit in the Reserve Account in the Special Fund, shall at least equal the Reserve Requirement, as defined in the 1984 Series Resolution. (3) The Fiscal Agent shall transfer the remainder of such proceeds to the Agyency for deposit in the Redevelopment Fund established as provided in Section 13 of the General Resolution. Section 3.05. Arbitra a Bond Covenant. The Agency covenants with the Holders of n 9 6 Bonds at any t me outstanding that It will make no use of -11- .�?o c r1w the proceeds of any 'Of the-1986 Bonds which will cause any of the 1986 Bonds a` to be •arbitrage bonds* subject to federal intone taxation by reason of Section 103(c) of the internal Revenue Code of 1954, es amended. To that end, i•, so long As any of the 1986 Bonds are outstanding, the Agency, with respect to the proceeds of the 1966 Bonds, will comply and require the Fiscal Agent to comply with all requl�ements of said Section 103(c) and all regulations of the _ United States Department of the Treasury issued thereunder, to the extent that such requirements are, at the time, applicable and in effect. Section 3.05. Covenant Re Loan or Certain Other Uses at 1986 Bond PraCeeii.�p aapOnt 1111 •excess 0 f ve percent o the face amount Ot the 9- Bonds will be used or indirectly to make or finance loans so as to cause the 1986 Bonds to be "consumer loan bonds° within the meaning of Section 103(0) of the Internal Revenue Code Of 1954, As amended, and the regulations promulgated thereunder. Section 3.07. Covenant Re Industrial 0evelo Tnt Bonds. The Agency covenants t o n0 principal n excess o twenty -f ve percent X of the amount of interest or principal payable on the 1986 Bonds may e Parties for the use of facilities financed with the y paid by private Bands proceeds of the 198b Will tom °•�`• Lpp1 itente with Lew ietlon of Pru act. The Agency Project,, including without a llnitat/on, On��pllanc Law n any applicable provisions of either Section 33445 or 33679 of the Law prior to application of Sections 33445hor1986 3679.ds The g Ag ency twill ocom ence. and WilleCcontinue thto completion, with all practicable dispatch, the Project, and the Project will be accooplished ar,- ':OmPleted in a souna and economical manner_ ::r ai y ARTICLE IV MISCELLANEOUS Except as --1n thl-s 198�pp ementa Reso ut on express y pov aed r, every term and condition contained in the General Resolution and the 1984 Series Resolution shall apply to this 1986 Supplemental Resolution and to the 1986 Bonds with the same force and effect as if the same were herein set forth at length, with such omissions, variations and m difications thereof as may be appropriate to make the same conform to this 1986 Supplemental Resolution. This 1986 Supplemental Resolution and all the terms and provisions herein contained shall form part of the General Resolution as fully and with the sane effect as if all such terms and provisions had been set forth In the General Resolution. The General Resolution is hereby ratified and confirmed and shall continue in full force and effect In accordance with the tenas and provisions thereof. Sect ton 4.02. Article and Section Headings. The headings or title of the severs art c es and Sections of-TTfs-79FUTupplemental Resolution shall be solely for convenience of reference and shall hat affect the meaning, construction or effect of the 1986 Supplemental Resolution. Sec 'gin 4.03. Execution in Several Counter arts. This 1986 Supplements Rl esTtion may be executed in any number of counterparts .tnd each of such counterparts shall for all purposes be deemed to be an original; end all such counterparts, or as many of them as the Agency shall preserve undestroyed, shall together constitute but one and the same i ztrumenl.. Section 4.04. Effective Date of This 1986 Su lemental Resolution. This 98 uppfementa Resolution shall take effect from an +ifter its adoption. Section 4.05 Provisions Applicable to Band Insurer. (a) The annual audit requd by Sect on 6 of Resolution No -0 shall be promptly provided by the Agency to the Bond Insurer. (b) Provided that the Bond Insurer is not then in default with respect to its obligations under the Municipal Bond Insurance Policy, the Bond Insurer shall be deemed to be an Holder of the Bonds insured by the Bond Insurer: (i) at all times for the purpose of the execution and delivery of a supplemental resolution authorizing amendment, change or modification of the General Resolution, this 1986 Supplemental Resolution or airy other shies or supplemental resolution or the initiation by Holders of any action to be undertaken by the Fiscal Agent at the Holder's request, which under the General Resolution, this 1986 Supplemental Resolution or any other series or supplemental resolution requires the written approval or consent of or cdn be Initiated by the Holders of sixty percent (60%) in aggregate principal amount of the Bonds at the time outstanding and (11) following an event of default for all other purposes, including, without limitation, notice of default, under Section 27. of Resolution No. RA 83 -07. Nothing in this Section 4.05 (b) or In any other Section of the General Resolution or this 1986 Supplemental -^19-, o'� Resolution shall limit the rights of a Bond Insurer as to 1986 Bonds of which ,. f the fond insurer is the Holder. 4 (c) Notwithstanding the provisions of Section 28 of Resolution No. 83- 07, relating to defeasance of the Bonds, only direct non - callable obligations . of the United States of America shall, without the prior approval of the Bond Insurer, be deposited in any reserve fund or special trust account for purposes of defeasmue of the 1986 Bonds and, in the event that the principal and redemption price, if applicable, and interest due on the 1986 Bonds shall be paid by the Bond Insurer pursuant to Its Municipal Bond Insurance Policy, the assignment and pledge of the Pledged Tax Revenues and all covenants, agreements and other obligations of the Agency to the Holders shall continue to exist and the Bond Insurer shall be subrogated to the rights of such Holders. (d) Any notice or demand which 1s required or permitted to be given under any provision of the General Resolution, this 1986 Supplemental Resolution or any other series or supplerrntal resolution, including, without limitation, notice of the appointment and removal or resignation of any paying agent or of the Fiscal Agent for toe 1986 Bonds, shall also be given to the Bond Insurer in writing and sent registered ar certified mail to Financial Guaranty Insurance Company, 175 Water Street, New York, New York 10038. i Y6$'e 1' ieX`YI iL �� , 4.1 .3 .. �L� _ ♦, {� �Y ��f ARTICLE V AMENDMENTS Section 5.01. Amendments in Nesolution No. RA 83 -07. (a) The deftnit on o a oral ear t es conty nod n Sect on . 1 Resolution No. RA 83 -07 is amended to read as follows: of America and i s securities fully and unconditionally it lyguaranteed as to timely payment of principal and interest by the United States of America; direct obligations and fully guaranteed certificates of beneficial interest of the Export- Import Bank of the United States; senior debt obligations of the Federal Home Loan Banks; debentures of the Federal Housing Administration; guaranteed mortgage- backed bonds and guaranteed pass - through obligations of the Government National Mortgage Corporation; guaranteed Title XI financing of the U. S. Maritime Administration; mortgage- backed securities and senior debt obligations of the Federal National Mortgage Association; and participation certificates and senior debt obligations of the Federal Home Loan Mortgage Corporation; all as and to the extent that such securities are eligible for the legal investment rf Agency funds. (b) Section 19 of Resolution No. RA 83 -07 is amended to read as follows: 'Section 19. Deposit and Investment of Money 1n Fud and Accounts. All coney held by tht gooey or sca gent n any of t e funds established pursuant to this resolution shall be held in time or demand deposits 1n any bank or trust cxryany (including the Fiscal Agent and the Paying Agents) authorized to ac:ept deposits of public funds, provided (1) such bank or trust company (or teal bank of a parent bank holding company) has an unsecured, uninsured and unguaranteed obligation rated `Aa30 or better by Moody's Investors Service and "AA-0 or better by Standard & Poor's Corporal ion; or (ii) such banh or trust company has combined capital, surplus and undivided Profits of not less than $3,000,000, and such deposits are fully insured by the Federal Deposit Insurance Corporation or Federal Savings and Loan Insurance Corporation Money in the Special Fund, the Debt Service Account, or in the Prior Redemption Account may, and upon the written request of the Agency shall, be invested by the Fiscal Agent, and money In the Redevelopment Fund may be invested by the Agency, in Federal Securities or negotiable certificates of deposits issued by a nationally or ;Late chartered b nk, provided (i) such bank or trust company (cur lead bank of a parent bank holding company) has an unsecured, uninsured and unguaranteed obligation rated 'AW or better by Moody's Investors Service and "AA-0 or better by Standard & Poor 's Corporation; or (ii) such bank or trust company has combined capital, surplus and undivided profits of not less than $3 million, and such deposits are fully insured by the Federal Deposit Insurance Corporation or Federal Savings and Loan Ir.;urance Corporation. Investments of money in the Special Fund, the Debt Service Account, or in the Prior Redemption Account must mature prior to the date at which such money is estimated to be required to be paid out hereunder. Investments of money in the Redevelopment Fund must mature not later than six months after the date on which such money is estimated to be Invested in obligations which will by their terms mature prior to such date -21- Del ,a or dates as may be hereinafter established by one or more Series Resolutions. !coneys in the Reserve Account shall only be invested in Federal Securities or negotiable certificates of deposit •issued by a nationellY or state chartered bank as the hereby). shallbebeivaluedfatt a sentences the market t aluethereofs(exclusive of accrued least remediedyno la er ethanethee succeeding valuation datec All investment income received subsequent thereto on any money so invested shall be transferred to the Reserve Account, which shall be deposited p sitedinithesStpecial Fund. on coney in the Section 5.02. Amerx�ments to Resolution No. RA 84 -01. (a) The first sentence of ect on . of eso ut on o. 4-— muended to read as follows: •ln addition to the provisions set forth in Section 19 of Resolution Nu. 83- 07, money in thrz Reserve Account shall be invested in obligations which -C at least will by their lrespeetivatU next succeedingbihe moking of the investment. 1 and (h) Subsection (c) of Section F. of Resolution No: 84 -U1 is amended to read as follows: •(c) Pledged Tax Revenues, plus other revenues and investment income of the Agency available for debt service, exclusive of any non- recurring revenues, received by the Agency for the current Fiscal Year during which the calculetion is made, or to be received by the Agency for the Fiscal Year following the date on which calculation is made, based upon the most recent assessed valuation of taxable property in the Project Area, are at least equal to 1.25 times M Maximum Annual Debt Service on all Bands, Parity Bonds and any loans+ advar•ces or indabtedness payable from Tax Revenues pursuant to Section 33670 of the Law, which will be outstanding following the issuance of such Parity Bonds. -22- / ,- a uw 0111ccs o, BEST, BEST& KRIEGeR MEMORANDUM August 5, 1986 TO: CHAIRIiAN, REDEVELOPMENT AGENCY MEMBERS AND EXECUTIVE DIRECTORS FROMt SPECIAL COUNSEL REt PREPAYMENT OF 1985 CERTIFICATES OF PARTICIPATION (HAVEN COMMERCE CENTER PROJECT) In 1985, the Agency financed the acquisition and construction by August H. Reiter III (the •Developer•) of the Haven Commerce Center Project by means of an installment sale financing arrangement. Certificates of Participation In the amount of $4,565,000 were sold to Wells Pargo Sank in connection with the financing. Under the financing arrangement, the Agency acquired the Project from A. H. Reiter Development Co. and immediately conveyed the Project back to the Developer, through a First Installment Sale Agreement and a Second Installment Sale Agreement, respecti7ely. The obligation of the Agency to make installment payments under the First Installment Sale Agreement is limited to amounts received from the Developer under the Second Installment Sale Agreement. The Certificates Of Participation represent proportionate interests in the installment payments. i "�4' uw o,nccn a, BEST BEST 6 KRIEGER Due to a proposed sale of the Project, the Developer now proposes to prepay in full amounts owing under the Second Installment Sale Agreement, which will corre- spondingly fulfill the Agency's obligatione under the First Installment Sale Agreement. Funds will then be available to pay off in full all of the Certificates of Participation. Wells Fargo, as sole Certificate owner and lender, has consented to this arrangemsn_. Wells Fargo and the Developer intend by this process to convert the Developer's debt obligation to a taxable loan. The attached Resolution approves the Developer's t oposed prepayment and authorizes the Executive ..irector to instruct the Trustee to accept the prepayment end apply it to the payment In full of the Certificates of Participation. We would reco®end that the Agency approve the attached Resolution. FRANCIS J. HVUN STEPHANIE K. HARLAN -2- 6KH0232 C 1 r RESOLUTION NO. RA Pb — 6? A RESOLUTION OF THE RANCHO CL'CAMONGA REDEVELOPMENT AGENCY CONSENTING TO THE TERMINAY'10N OF THE INSTALLMENT SALE FINANCING ARRANGEMENT FOR THE HAVEN COMMERCE CENTER PROJECT by MEANS OF A DEVELOPER PREPAYMENT WHEREAS, as of November 2, 1985 the Agency undertook an installment sale financing arrangement , including the issuance of certificates of participation (the 'Certificates ") in the principal amount of $4,565,000, to finance the acquisition and construction by August H. Reiter III (the "Developer") of a commercial project consisting of four office buildings located at the northeast corner of Seventh and Haven Streets 'n the Rancho Cucamonga Redevelopment Project Area of the Agency; and WHEREAS, the Developer now proposes to repay in fall Its obligaticn to make installment sale payments (the "Developer Payments") to Seattle -First National Bank, as trustee (the " Trustee'), for the account of the Ag•rcy, under that certain Second installment Sale Sgreement, dated as of November 1, 1985, by and between the Agency . I the Developer; and WHEREAS, the Agency is informed that the Certificate Owner nas consented Lo the payment in full of all principal of and Interest on the Certificates NOW THEREFORE, CE IT RESOLVED by the Rancho Cucanonga Redevelopment Agency as follows: Section 1. Recitals. The above recitals, and each of them are true and correct. section 2. Consent to Prepayment. The Developer's prepayment In full of the Developer Payments to the Trustee and the application thereof by the Trustee to the payment in full of the Certificates is hereby approved and consented to. Section 3. Instruction to the Trustee. The Executive Director is hereby aut1mrized and rected to nstruct the Trustee in writing to accept the Developer's prepayment of the Developer Payments and to apply such prepayment, upon receipt of a request by the Developer and the consent of the Certiflcnte Owner, to pay off all remaining principal of and Interest on the Certificates. Section 4. Other Acts. The officers of the Agency are hereby authorized and diructe , j�ly and severally, to do any and all things, to executa and deliver any and all documents which In consultation with the Staff and Special Counsel, they may deem necessary or advisable to order to cause the Certificates to be paid in full from the Developer's prepayment of the Developer Payments, or otherwise to effectuate the purposes of this MOM �Joj N I Resolution No. RA Page 2 Resolution, and any both actions previcusly taken by such officers are hereby ratified and confirmed. Section 5. Effective Date. This Resolution shall take effect imaedistely upon adopt of n PASSED, APPROVED and ADUPTED this 6th day of August, 1986.