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
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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
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' 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
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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:
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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.
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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
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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.
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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.
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(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
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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
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(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
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[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
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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
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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.