Loading...
HomeMy WebLinkAbout85-241 - ResolutionsRESOLUTION NO. 85-241 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCRU CUCAHONGA, CALIFORNIA, AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF BONDS OF A COBNUNITY FACILITIES DISTRICT WHEREAS, the City Council of the City of Rancho Cucamonga, Calxfornia, (hereinafter referred to as the '%egislative Body"), has heretofore undertaken proceedings and declared the necessity to issue bonds on behalf of a Community Facilities District pursuant to the terms and provxsions of the '~ello-Roos Community Facilities Act of 1982", as amended, being Chapter 2.5, Part I, Division 2, Title 5 of the Government Code of the State of California. Saxd Community Facilities District is designated and known as CONMUNITY FACILITIES DISTRICT NO. 84-1 (DAY CREEK DRAINAGE SYSTEM) ; and WHEREAN, pursuant to law an election was held and the following proposition was approved by more than 2/3's of the voters voting at said election: ; and CITY OF RANCHO CUCAMONGA, COMMUNITY FACILITIES DISTRICT NO. 84-1 (DAY CREEK DRAINAGE SYSTEM), AUTHORIZATION TO INCU~ BONDED INDEBTEDNESS AND AUTHORIZATION FOR SPECIAL TAX LEVY Shall the City of Rancho Cucamonga, California Community Facilities District No. 84-1 (Day Creek Drainage System) incur a bonded indebtedness in an amount not to exceed $20,225,000.00, to fxuance certain public capital drainage improvements to meet the needs of new development within the Community Facilities District, including all appurtenant work necessary and incidental expenses, said indebtedness to be secured by annually levied special taxes? YES NO WHEREAS, on May 8, 1985, judS~ient. was entered in that certain validation action entitled City of Rancho Cucamonza v. All Persons Interested, Etc,, in the Superior Court of the County of San Bernardino determining that the Special Tax will, when levied, constitute valid and binding special taxes of the Community Facilities District and the Bonds of the Community Facilities District will, upon their sale and delivery, constitute a legal, valid and binding obligation thereof; and WltEREAS, on June 5, 1985, the legislative body did enact Ordinance No. 263 authorizing the levy of a special tax in the Community Facilxties District; and WHEREAS, no bonds of the above-referenced authorization to date have been issued and sold, and at this time it is the desire of this Legislative Body to proceed to issue Series '~" bonds in the amount of $18,000,000.00. Resolution No. 85-241 Page 2 NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: ARTICLE I. DEFINITIONS SECTION 1: As used in this Resolution, the following terms shall have the following meanings: A. "Act" means the '~ello-Hooe Community Facilities Act of 1982", as amended, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California. B. "Agency" means the Redevelopmerit Agency of the City. C. "Annual Debt Service" means, for each twelve month period ending August 1st, the stun of (1) the interest falling due on the Outstanding Bonds in such twelve month period, assuming that the Outstanding Serial Bonds are retired as scheduled and the Outstanding Term Bonds are redeemed frcm the Term Bond Sinking Fund Account as scheduled; (2) the principal amount of Outstanding Serial Bonds falling due by their terms in such twelve month period, and (3) the minimum amount of the Outstanding Term Bonds required to be paid or called and redeemed in such twelve month period, together with the redemption premiums, if any, thereon. D. '~verage Annual Debt Service" means the average Annual Debt Service during the term of the Bonds. E. '~dditional Bonds" means any additional Special Tax Bonds issued by the Community Facilities District as permitted by Section 26 of this Resolution payable from the Special Taxes on a parity with the Bonds. F. "Bondholder" or '~older of Bonds", or any similar term, means any person who shall be the registered owner or his duty authorized attorney, trustee, representative or assign of any Outstanding Bond which shall at the time be registered. For the purpose of Bondholders' voting rights or consents, Bonds owned by or held for the account of the Agency, or the City, directly or indirectly, shall not be counted. C. "Bonds" means the "City of Rancho Cucamonga, Community Facilities District No. 84-1 (Day Creek Drainage System), Special Tax Bonds, Series 'A"' and any Additional Bonds. H. "Bond Payment Fund" means the fund by that name established in Section i1. I. "Bond Reserve Fund" means the fund by that name established in Section II. J. "Bond Year" means the year ending each August 1st. K. "City" means the City of Rancho Cucamonga, California, a municipal corporation duly organized and existing under and by virtue of the Constitution and laws of the State of California. L. '~ommunity Facilities District" means the Community Facilities District No. 84-1 (Day Creek Drainage System) of the City. H. "Community Facilities Improvement Fund: means the fund by that name established in Section 11. N. '~iscal Agent" means Bank of America NT & SA or any other bank or trust company which may be substituted in its place as provided in Section O. "Interest Payment Date" means February 1 and August I of each year commencing February 1, 1986. Resolution No. 8)-241 Page 3 P. '%egislative Body" means the City Council of City. Q. 'loan and Pledge Agreement" means that certaxn agreement between the City and the Agency dated May 5, 1983, including all amendments or supplements thereto. R. '~aximum Annual Debt Servzce" means, as computed from txme to time pursuant to the provisions hereof, the largest debt service in any Bond Year during the period from the date of such determznation through t~e fxnal maturity of any Outstanding Bonds. S. '~utstanding Bonds" means all Bonds theretofore issued by the Community Facilities District, except: (1) Bonds theretofore cancelled or surrendered for cancellatxon in accordance with Section 25 hereof; (2) Bonds for the payment or redemption of whxch monies shall have been theretofore deposited in trust (whether upon or prxor to the maturity or the redemption date of such bonds), provxded that, if such Bonds are to be redeemed prxor to the maturxty thereof, notice of such redemptxon shall have been given as provided in this Resolution or any applxcable Additional Bond resolution. T. '~]vner" means the registered o~ner of any Outstanding Bond. U. '~rincipal Payment Date" means August 1 of each year, commencing on August 1, 1988. V. The '~ublic Facilxtxes" means the facil~txes as descrxbed in Section III of the '~ngineer's Tax Apportionment Report, Mello-Roos Community Facilities Act of 1982", on f~le in the Offxce of the City Clerk of the City. W. 'Reserve Fund Requirement" means initially an amount equal to of the prxncipal amount of the Bonds until (and including) August 1, 19~8, and, thereafter, an amount equal to the ]~aximum Annual Debt Servxce on the Bonds. X. '~erial Bonds" means the bonds descrxbed in Section 6A hereof. Y. '~pecial Taxes" means the taxes autnorxzed pursuant to the Act and these proceedings and levxed pursuant to the provxsions of Ordinance No. 2~. Z. '~tate" means the State of Calitornia. AA. 'Term Bonds" means the Bonds as descrxbed in Section 6B. BB. 'Treasurer" means the City Treasurer of the City. ARTICLE IA. GENERAL AUTHORIZATION AND TERMS SECTION 2: That the above recitals are all true and correct. SECTION 3: Amount. Issuance and Purvose. Pursuant to the provxsions of the Act and the Registered Public Obligations Act of Calxtornxa (Sectxons 5050 and following of the California Government Code), thxs Legislatxve Body does hereby authorxze the issuance of bonds in the amount of $18,000,000.00. The purpose of the Bonds shall be to fxuance the acquisition or constructxon of Public Facilities to meet the drainage needs of new development wxtnxn the Community Facilities District. Resolution No. 85-241 Page 4 SECTION 4: Description of Bonds. Said Bonds shall be designated "CITY OF RANCHO CUCA~ONGA, COMMUNI'I~ FACILITIES DISTRICT NO. 84-1 (DAY CREEK DRAINAGE SYSTEM), SPECIAL TAX BONDS, SERI~S 'A", and saxd Bonds shall be numbered consecutively, commencing with number I in each maturxty year, wltn a different letter prefxx assigned to each maturity year, beginning with 'A" but omxtting "I" and '~". All of saxd Bonds shall be dated the ist of August, 1985, and interest shall accrue on said Bonds from that date. SECTION 5: T~e and Nature of Bond. The Bonds shall be special obligations of the Community Facilitxes District secured by and payable from an irrevocable fxrst lien on and fxrst pledge of the Special Tax revenues, investment income earned after completion of construction of the Public Facilities on funds in deposit in the Bond Reserve Fund, and other funds as hereinafter provided for, includlng monies pledged pursuant to the Loan and Pledge Agreement. Said Bonds, the interest thereon, and any prumxums payable on the redemption of any thereof, are not an indebtedness of the City, the State of Calitornia, or any of its political subdivxsions, and nexther the City, the State nor any of its political subdivxsions is liable on the Bonds, nor in any event shall said Bonds or interest be payable out of any funds or properties other than those of the Community Facilxties Distrxct as in th~s Resolution set forth. Neither the members of the Community Facilx~xes Distrzct or the City nor any persons executing the Bonds are lxable personally on the Bonds by reason of their issuance. The Bands shall be and are equally secured by and payable from an irrevocable and first pledge of Special Tax revenues and other funds as may be hereinafter provided, including monies pledged pursuant to the Loan and Pledge Agreement, without prxorxty for number, date of sale, date of execution or date of delivery, except as expressly provxded herein. The validity of the Bonds is not and shall not be dependent upon the completion of the Public Facilxtles or upon the performance of any one of or her obligation relative to the Community Facilitxes Distrzct. Nothxng in this Resolution shall prevent the Community Facilxt~es District from making advances from any other source of revenue not otherwxse prohxbited by law to any of the uses and purposes mentioned in thzs Resolution. SECTION 6: Maturity and Interest Rate. A. SERIAL BONDS: The Serial Bonds shall be issued in serial form, with annual prxnclpal maturxng on August 1,198g, and each succeeding year thereafter in the prxncipal emounts and bearinE interest at the rates as hereinafter set forth: PRINCIPAL ANOUNT INTEREST YEAR MATURING (AUGUST 1) RATE 1988 $ 485,000.00 6.25% 1989 515,000.00 6.75l 19~0 550,000.00 7.25I 1991 590,000.00 7,501 1992 635,000.00 7.751 1993 68),000.00 8.00% 1994 740,000.00 8.25% 1995 79~,000.00 8.4U~ 1996 86b,000.00 8.50~ 1997 93b,000.00 8.60~ 1998 1,020,000.00 8.70~ 1999 1,105,000.00 8.80% Eesolution No. 8)-241 Page 5 B. TERM BONDS: The Term Bonds shall be issued in term form, wltn annual principal maturing on August 1, 2005, and subject to mandatory sinking fund redemption as more specifically set forth hereinaIter: PRINCIPAL AMOUNT INTEREST YEAR MATURING (AUGUST 1) RATE 2005 $ 9,080.000.00 9.10% SECTION 7: Interest. All Bonds shall bear interest at the rates provided for in Section 6 hereinshore, and each Bond shall be of a single maturity and shall bear interest at the rate or rates as set forth herein. Interest shall be payable semi-annually on February I and August 1, and all Bonds shall bear interest from the Interest Payment Date next preceding the date on which it is authenticated, unless (i) said Bond is authenticated as of an Interest Payment Date, in which case it shall bear interest from the date thereof; or (ii) said Bond is authenticated after the 1)tn day of the month preceding an Interest Payment Date and before such Interest Payment Date, in which case it shall bear interest from such Interest Payment Date; or (izl) it is dated prior to January 15, 1986, in which event interest shall be payable from August 1, 1985. SECTION 8: Place of PaYment. The principal of the Bonds snell be payable in lay/u1 money of the United States of America at the prxncipal corporate trust oftice of the Fiscal Agent in Los Angeles, Calitornia. Interest on said Bonds shall be paid by check or draft mailed to the registered owner thereof at his address as it appears on the books of registration, or at such address as may have been filed with the Fiscal Agent for that purpose, as of the 15th day of the calendar month preceding said Interest Payment Date. No transfer of fully registered Bonds shall be required to be made during the fifteen (15) days next preceding each Interest Payment Date. SECTION 9: Execution of Bonds. The Bonds shall be executed in facsimile by the Mayor and by the City Clerk, and the corporate seal shall be imprinted in facsimile on the Bonds. The bonds shall then be delivered to the Fiscal Agent, for authentication and registration. In case an officer who shall have signed or attested to any of the Bonds by facsimile or otherwise shall cease to be such officer before the authenticalton, delivery ann issuance of the Bonds, such Bonds nevertheless may be authenticated, delivered and issued, and upon such authenticalton, delivery and issue, shall be as binding as though those who signed and attested the same had remained in office. SECTION 10: Order to Print and Authenticate Bonds. The Treasurer is hereby instructed to cause Bonds in the form as set forth herein, to be printed, and to proceed to cause said Bonds to be authenticated and delivered to an authorized representative of the purchaser, upon payment of the purchase price as set forth in the accepted proposal for the sale of the Bonds. ARTICLE III. FUNDS SECTION 11: Special Funds, There are hereby created and established the following funds for the deposit and allocation of monies in the Community Facilities District: Bond Reserve Fund, Community Facilities Imprc~ement Funu and Bond Payment Fund. A. BOND RESERVE FUND: An amount equal to 6.51 of the principal amount of the Bonds shall be deposited in the Bond Reserve Fund from the Bona proceeds, which Fund shall be deposited in the bond Reserve Fund from the Bond proceeds, which Fund shall be held and administered by the Fiscal Agent. Resolution No. 8~-241 Page 6 If the amount in the Bond Reserve Fund is less than the Reserve Fund Requirement, then the Bond Reserve Fund shall be restored by the inclusion of a sufficient amount in the next annual Special Tax levy to replenish the Bond Reserve Fund, not to exceed the maxim authorized tax, Except as otherwise provided herein, the monies in the Bond Reserve Fund shall be used only for payment of the principal of and interest on the Bonds, and more specifically as follows: (a) For transfer to the Bond Payment Fund from time to time such amounts as are needed to pay the principal of and interest on the Bonds when due; (b) To redeem Bonds in accordance with the provisions of this Resolution; and (c) The amount in the Bond Reserve Fund in excess of the Reserve Fund Requirement will be transferred to the Community Facilities Improvement Fund on August 1st of each year until construction is completed or until August 1, 1988, whichever is earlier, and subsequent thereto on each August 1st, any excess will be transferred to the Bond Payment Fund. B. BOND PAYMENT FUND: All monies received from the collection of the annually levied Special Taxes and all amounts received by the City pursuant to the Loan and Pledge Agreement shall immediately upon their receipt by the Community Facilities District or by the City on behalf of the Community Facilities District be deposited in the Holding Account of the Bond Payment Fund, which shall be held and administered by the Fiscal Agent and used for the purpose of paying the principal of and interest on said Bonds, or transferred to the Bond Reserve Fund or Bond Redemption Fund, or other purpose as hereinafter authorized. Also, as hereinafter authorized, funds from the Bond proceeds in an amount which, together with accrued interest plus premium, if any, is equal to six (6} months interest on the Bonds shall be transferred to the Bond Payment Fund following the deposit of the required portion of said proceeds into the Bond Reserve Fund. Monies, including monies received pursuant to the Loan ana Pledge Agreement, pledged as a contribution to be applied as a credit against debt service, shall be deposited in the Bond Payment Fund. All money in the Bond Payment Fund shall be set aside by the Fiscal Agent in the following respective accounts within the Bond Payment Fund (each of which is hereby created and each of which the Community Facilx~les District hereby covenants and agrees to cause to be maintained) in the following order of priority: ' (1) Interest Account, (2) Serial Bond Payment Account, (3) Term Bond Sinking Fund Account, and (4) Holding Account. All money in each of such accounts shall be held in trust by the Fiscal Agent and shall be applied, used and withdrawn only for the purposes hereiuafter authorized in this Section, (1) Interest Account. On or before December 31 ana June 30 of each year, beginning on December 31, 19~5, the Fiscal Agent shall set aside from the Bond Payment Fund and deposit in the Interest Account an amount of money which, together with any money contained therein, is equal to the aggregate amount of the interest becoming due and payable on all Outstanding Bonds on the next succeeding Interest Payment Date. No deposit need be made into the Interest Account i~ the amount contained therein is at least equal to the aggregate amount of the interest becoming due and payable on all Outstanding Bonds on the next succeeding Interest Payment Date. All money in Resolution No. 85-241 Page 7 the Interest Account shall be used and withdrawn by the Fiscal Agent solely for the purpose of paying the interest on the Bonds as it shall become due and payable (including accrued interest on any Bonds purchased or redeemed prior to maturity). (2) Serial Bond Payment Account. On or before June 30 of each year, beginning on June 30, 1988, the Fiscal Agent shall set aside from the Bond Payment Fund and deposit in the Serial Bond Payment Account an amount of money which, together with any money contained therein, is equal to the aggregate amount of the principal becoming due and payable on all Outstanding Serial Bonds on the next succeeding August 1. No deposit need be made into the Serial Bond Payment Account if the amount contained therein is at least equal to the principal amount of all Outstanding Serial Bonds maturing by their terms on the next succeeding August 1. All money in the Serial Bond Account shall be used by the Fiscal Agent solely for the purpose of paying the prxncipal of the Serial Bonds as they shall become due and payable. (3) Term Bond Sinking Fund Account. On or before June 30 of each year, beginning on June 30, 2000, the Fiscal Agent will set aside from the Bond Payment Fund and deposit in the Term Bond Sinking Fund Account, an amount f money equal to, but not greater than, the mandatory sinking fund payment required to be deposited therein, as set forth in the schedules in Section 188. The C~mnunity Facilities District hereby covenants and agrees with the holders of the Term Bonds to call and redeem Term Bonds (without premium) from the Term Bond Sinking Fund Account pursuant to and in accordance with said schedule. No deposit need be made into the Term Bond Sinking Fund Account if the amount contained therein is at least equal to the aggregate amount of all mandatory sinking fund account payments required to be made in the year ending on the next succeeding August 1. All money in the Term Bond Sinking Fund Account shall be used and withdrawn by the Fiscal Agent only to redeem Term Bonds. (4) HoldinK Account. After the payment of debt service on each August 1, commencing August i, 1987, the Fiscal Agent shall make the following transfers (listed in order of priority) from amounts then on deposit in the Holding Account of the Bond Payment Fund: (a) Transfer to the Interest Account the amount, if any by which ll0Z of the interest due on the next February 1, exceeds the estimated Special Tax receipts to be received prior to the next February 1. For the purpose of estimating such Special Tax receipts, the Fiscal Agent may rely upon a certificate signed by the City Manager of the City. The City Manager's estimate of the Special Tax receipts shall be based upon the amount of the Special Tax levy in said fiscal year approved by resolution of the City Council, as applied against the actual number of acres then in the Community Facilities District which are subject to the Special Tax. An allowance shall be made for delinquent Special Taxes in an amount equal to the actual rate of delinquent Special Taxes in the most recent Fiscal Year for which such data are available or, if such data shall be unavailable, at a rate equal to the delinquency rate on secured ad valorom taxes on property within the City for the most recent fiscal year for which such data are available. (b) Transfer to the Bond Reserve Fund the amount, if any, necessary to increase the Bond Reserve Fund to an amount equal to the maximum annual debt servxce on Outstanding Bonds. Resolution No. 85-241 Page 8 (c) Commencing August 1, 1988, any amounts remaining after above transfers shall be released to the Community Facilities District for any authorized purpose, including without limitation, payment of Fiscal Agent fees and expenses and for audit reports. C. COMMUNITY FACILITIES IMPROVEMENT FUND: Following the deposit into the Bond Reserve Fund and Bond Payment Fund, remaXning Bond proceeds shall be deposited into the Connnunity Facilities Improvement Fund, whxch shall be held and administered by the Treasurer. The monies in said Commaunity Facilities Improvement Fund shall be used to pay the costs and expenses, including incidental expenses, relating to the issuance of the Bonds and the construction or acquisition of the Public Facilities to be funded through the proceedings for the Commaunity Facilities District. Upon completion of the acquisition or construction of the Public Facilities, any surplus remaining in said Fund, including any interest earned thereon, shall be transferred to the Bond Payment Fund. D. BOND REDEMPTION FUND: Prior to the time that any Bonds are subject to redemption, and not less than thirty (30) days prior thereto, the Bond Redemption Fund shall be established, which shall he held and administered by the Fiscal Agent. Into said Bond Redemption Fund must be set aside sufficient monies to redeem Bonds, including principal and premxum, if any, and any monies set aside in said Fund shall be used solely for the purpose of redeeming Bonds. Following the redemption of any Bonds, if any surplus remains, said surplus shall be returned and transferred to the Bond Payment Fund. SECTION 12. Investment of Funds. Monies in the Bond Payment Fund, Community Facilities Improvement Fund, Bond Reserve Fund and Bond Redemption Fund shall be invested and reinvested in securities and obligations, as directed by the Treasurer, as set forth below. Said monies may be invested in United States Treasury notes, bonds, bills or certificates of indebtedness or those for which the full faith and credit of the United States of America are pledged for the payment of principal and interest. Mditioually, said monies may be held in time or demand deposits in any bank of trust company (including the Fiscal Agent) authorized to accept deposits of public funds, and said monies, if so invested, shall he secured at all times by such obligations as are required by law and to the fullest extent required by law. Additionally, said monies may be invested in negotiable certificates of deposit issued by a nationally or state chartered bank which are collateralized as required by law or insured by the Federal Deposit Insurance Corporation or Federal Savings and Loan Insurance Corporation. Investment of money in the Bond Payment Fund or any of the designated accounts therein must mature prior to the date at which said money is estimated to be required to be paid out under the terms of thxs Resolution. Notwithstanding anything to the contrary in the foregoing, no investment shall be permitted so as to cause the Bonds to be directly or indirectly guaranteed within the meaning of Section 103(h) of the Internal Revenue Code of 1954, as amended, and any regulations thereunder. ARTICLE IV. REGISTRATION SECTION 13: Reaistration and Denomination of Bonds. Said Bonds shall be issuable only as fully registered bonds in the denomxnation of $5,000, or any integral multiple thereof. Resolution No. 85-241 Page 9 SECTION 14: Exchan2e of ReKistered Bonds. Fully registered Bonds may be exchanged at the office of the Fiscal A~eut, for a hke aggregate principal amount of Bonds of the same series, interest rate and maturity, subject to the terms and conditions provided in the system of registration for registered debt obligations, including the payment of certain charges, if any, upon surrender and cancellation of a Bond. Upon such transfer and exchange, a new registered Bond or Bonds of any authorized denomination or denemxnations of the same maturity for the same aggregate principal amount will be issued to the transferee in exchange therefor. SECTION 15: Books of Realstration. There shall be kept by the Fiscal A~ent, sufficient books for the registration and transfer of the Bonds and, upon presentation for such purpose, the Fiscal A~ent shall, under such reasonable regulations as it may prescribe, register or transfer or cause to be registered or transferred, on said register, Bonds as hereinbefore provided. SECTION 16: Nezotiabilitv, ReKistration and Transfer of Bonds. The transfer of any Bond may be registered only upon such books of registration upon surrender thereof to the Fiscal A~ent, together with an assignment duly executed by the Owner or his attorney or legal representative, in satisfactory form. Upon any such registration of transfer, a new Bond or Bonds shall be authenticated and delivered in exchange for such Bond, in the name of the transferee, of any denomination or denominations authorized by th~s Resolution, and in an aggregate principal amount equal to the principal amount of such Bond or principal amount of such Bond or Bonds so surrendered. In all cases in which Bonds shall be exchanged or transferred, the Fiscal A~ent shall authenticate at the earliest practical time, Bonds in accordance w~th the provisions of this Resolution. All Bonds surrendered in such exchange or registration transfer shall forthwith be cancelled. The Legislative Body may make a charge for every such exchange or registration of transfer of Bonds sufficient to reimburse it for any tax or other governmental charge required to be paid with respect to such exchange or registration of transfer. The Fiscal A~ent shall not be required to make such exchange or registration of transfer of Bonds during the fifteen (15) days imediately preceding any Interest Payment Date. SECTION 17: Authentication. Only such of the Bonds as shall bear thereon a certificate of authentication substantially in the form below, manually executed by the Fiscal A~ent, shall be valid or obligatory for any purpose or entitled to the benefits of this Resolution, and such certificate of the Fiscal A~ent shall be conclusive evidence that the Bonds so authenticated have been duly executed, authenticated and delivered hereunder, and are entitled to the benefits of this Resolution. FORM OF CERTIFICATE OF AUT!IENTICATION AND REGISTRATION This is one of the Bonds described in the Resolution of Issuance of the City Council of the City of Rancho Cucamonga which has been registered BANK OF AMERICA NT & SA as Fiscal A~ent By: ARTICLE V. REDEHPTION SECTION 18: Terms of Redemption. The provisions of redemption shall be as follows: Resolution No. 85-241 Page 10 A. OPTIONAL REDEMPTION: The Bonds maturing on or before August 1, 1992, are not subject to call and redemption prior to maturity. The Bonds maturing on and after August 1, 1993, may be called before maturxty and redeemed at the option of the Community Facilities District, from any source of funds, on August 1, 1992, or on any Interest Payment Date thereafter as a whole or in part, but not in a total redemption amount of less than $20,000.00. The Bonds are subject to optional redemption in inverse order of maturity (if less than all of the Bonds Outstanding of any maturity are called for redemptxon, such Bonds to be so redeemed shall be selected by the Trustee by lot), at a price equal to the principal amount thereof plus accrued interest, plus a premium equal to one-half of one percent (.50%) of the prxncipal amount of bonds so called for redemption for each year or portion thereof from the date of redemption to the scheduled maturity date, but in no event more than two and one-half percent (2.50%). B. MANDATORY SINKING FUND REDEMPTION: The Term Bonds maturing August 1, 2005, are subject to mandatory sinking fund redemption prior to maturityat a redemption price equal to 100I of the prinicpal amount to be redeemed plus accrued interest to the date of redemption. The Term Bonds to be redeemed wzll be selected by lot. For the purposes of such selection, Term Bonds will be deemed to consist of $5,000 portions, and any such portion may be separately redeemed. The Term Bonds will be redeemed on August 1 in the principal amounts and years as shown in the following redemption schedule: Principal Year Redeemed 2000 1,210,000.00 2001 1,320,000.00 2002 1,445,000.00 2003 1,575,000.00 2004 1,725,000.00 2005 1,880,000.00 SECTION 19: Notice of Redemption. A. NOTICE BY MAIL: The Fiscal agent shall mail a notice, postage prepaid, to the respective registered Owners of the Bonds at the addresses appearing on the Bond registry books. The notice of redemption shall: (a) state the redemption date; (b) state the redemption price; (c) state the numbers and dates of maturity of the Bonds to be redeemed, and in the case of Bonds to be redeemed in part, the respective principal portions to be redeemed; provided, however, that whenever any call includes all Bonds of a maturity the numbers of the Bonds of such maturity need not be stated; (d) require that such Bonds be surrendered at the office of the Fiscal Agent in Los Angeles, California; (e) require that the form of assignment endorsed on the Bonds be duly executed in blank; and (f) give notice that further interest on such Bonds will not accrue after the designated redemption date. B. FAILURE TO RECEIVE NOTICE: The actual receipt by the Owner of any Bond of notice of such redemption shall not be a condition precedent to redemption, and failure to receive such notice shall not aftect the valxdity of the proceedings for redemption of such Bonds or the cessation of interest on the date fixed for redemption. C. CERTIFICATE OF RECEIVING NOTICE: The notice or notices required by this section shall be given by the Fiscal Agent. A certificate by saxd Fiscal Agent that notice of call and redemption has been given to the registered Owners of the Bonds as herein provided shall be conclusive as against all parties, and no Owner whose Bone is called for redemptxon may object thereto, or object to cessation of interest on the redemption date, by any claim or showing that he failed to receive actual notice of call and redemption. Resolution No. 85-241 Page 11 SECTION 20: Effect of Redemvtion. When notice of redemption has been given substantially as provided for herein, and when the amount necessary for the redemption of the Bonds called for redemption is set aside for that purpose in the Bond Redemption Fund, as provided for herein, the Bonds designated for redemption shall become due and payable on the date fixed for redemption thereof, and upon presentation and surrender of said Bonds at the place specified in the notice of redemption, with the form of assignment endorsed thereon executed in blank, said Bonds shall be redeemed and paid at the redemption price out of the Bond Redemption Fund and no interest will accrue on such Bonds or portions of Bonds called for redemption after the redemption date specified in said notice, and the Owners of such Bonds so called for redemption after such redemption date shall look for the payment of principal and premium, if any, of such Bonds or portions of Bonds only to said redemption Fund. All Bonds redeemed shall he cancelled forthwith by the Registrar ann shall not be reissued. Upon surrender of Bonds redeemed in part, a new Bond or Bonds of the same maturity shall be registered, authenticated and delivered to the registered Owner at the expense of the Community Facilxties District, in the aggregate principal amount of the unredeemed portion. All unpaid interest payable at or prior to the date fixed for redemption shall continue to be payable to the respective registered Owners of such Bonds or their order, but without interest thereon. ARTICLE VI. DEFAULT AND REMEDIES SECTION 21: Events of Default and Remedies. (a) Without the consent of holders of any Outstanding Bonds, if the modification or amendment is for the purpose of adding covenants and agreements further to secure Bond payment, to prescribe further limitations and restrictions on Bond issuance, to surrender rights and privileges of the Community Facilities District, to make modifications not affecting any Outstanding Bonds for the purpose of curing any ambiguities, defects or inconsistent provisions in this Resolution, provxded that the modifications or emendments do not adversely affect the rights of the holders of any Outstanding Bonds. (b) For any purpose with the consent of the holders of 60% of all Bonds then Outstanding (exclusive of Bonds owned by the Community Facilxties District or the City) provided, hewever, that no modification or amendment shall, without the express consent of the affected bondholders, reduce the principal amount of any Bond, reduce the interest rate payable thereon, extend the maturity or the time for paying interest thereon, change the monetary medium in which principal and interest in payable, or create an interest in the Special Taxes superior to the interest created pursuant to this Resolution or reduce the percentage of consent required for amendment or modification. Any act done pursuant to a modification or amendment so consented to shall be binding upon the Holders of all of the Bonds, and shall not be deemed an infringement of any of the provisions of this Resolution or of the Act, whatever the character of such act may be, and any be done and performed as fully and freely as if expressly permitted by the terms of this Resolution, and after such consent relating to such specified matters has been given, no Bondholder shall have any right or interest to object to such action or in any manner to question the propriety thereof or to enjoin or restrain the Community Facilities District or any officer thereof from taking any action pursuant thereto. (a) Callin2 Bondholders' MeetinK. If the Co~aunity Facilxties District shall desire to obtain any such consent it shall duly adopt a resolution calling a meeting of the Bondholders for the purpose of considering the action the consent to which is desired. Resolution No. 85-241 Page 12 (b) Notice of MeetinK. Notice specifying the purpose, place, date and hour of such meeting shall be published once in a financial newspaper or journal of national circulation published in the City of New York, New York, such publication to be not less than sixty (60) days nor more than ninety (90) days prior to the date fixed for the meeting. Such notice shall set forth the nature of the proposed action consent to which is desired. The Community Facilities District shall, on or before the publication of such notice, cause to be mailed a similar notice, postage prepaid, to the respective registered owners thereof at their addresses appearing on the bond register as maintained by the Fiscal A~ent. Notice shall also be mailed to each Bondholder who has filed his name and address with the Fiscal Agent for this purpose. The place, date and hour of holding such meeting and the date or dates of publishing and mailing such notice shall be determined by the Community Facilities District in its discretion. The actual receipt by any Bondholder of notice of any such meeting shall not be a condition precedent to the holding of such meeting, and failure to receive such notice shall not affect the validity of the proceedings thereat. A certificate by an appropriate officer of the Community Facilities District approved by resolution of the Community Facilities District, that the meeting has been called and that notice thereof has been given as herein provided, shall be conclusive as against all parties and it shall not be open to any Bondholder to show that he failed to receive actual notice of such meeting. (c) Votin~ 0ualifications. The Fiscal Agent shall prepare and deliver to the chairman of the meeting a statement of the names and addresses of the registered owners of fully registered Bonds, such statement to show ' maturities, serial numbers and the principal amounts so that voting qualifications can be determined. No Bondholders shall be entitled to vote at such meeting unless their names appear upon such statement. No Bondholders shall be permitted to vote with respect to a larger aggregate principal amount of Bonds than is set against their names on such statement. (d) Issuer-Owned Bonds. The Community Facilities District covenants that it will present at the meeting a certificate, signed and verified by one member thereof and by the Treasurer, stating the serial numbers, maturities and principal amounts of all Bonds owned by, or held for account of, the Community Facilities District or the City, directly or indirectly. No person shall be permitted at the meeting to vote or consent with respect to any Bond appearing upon such certificate, or any Bond which it shall be established at or prior to the meeting is owned by the Community Facilities District or the City, directly or indirectly, and no such Bond (in this Resolution referred to as "issuer-owner Bonds") shall be counted in determining whether a quorum is present at the meeting. (e) Quorum and Procedure. A representation of at least sixty percent (60Z) in aggregate principal amount of the Bonds then Outstanding (exclusive of issuer-ovned Bonds, if any) shall be necessary to constitute a quorum at any meeting of Bondholders, but less than a quorum may adjourn the meeting from time to time, and the meeting may be held as so adjourned without further notice, whether such adjournment shall have been held by a quorum or by less than a quorum. The Community Facilities District shall, by an instrument in writing, appoint a temporary chairman of the meeting, and the meeting shall be organized by the election of a permanent chairman and secretary. At any meeting each Bondholder shall be entitled to one vote for every $5,000 principal mount of Bonds with respect to which he shall be qualified to vote as aforesaid, and such vote may be given in person or by proxy duly appointed by an instrument in writing presented at the meeting. The C~unity Facilities District and/or the Fiscal Agent by their duly authorized representatives and counsel, may attend any meeting of the Bondholders, but shall not be required to do so. Resolution No. 8~-241 Page 13 (f) Vote ReQuired. At any such meeting held as aforesazd there shall be submitted for the consideration and action of the Bondholders a statement of the proposed action consent to which is desired, and if such action shall be consented to and approved by Bondholders holding at least sixty percent (60~) in aggregate principal amount of the Bonds then Outstanding (exclusive of issuer-owned Bonds, if any) the chairman and secretary of the meeting shall so certify in writing to the Co~nunity Facilities District, and such certificate shall constitute complete evidence of consent of the Bondholders under the provisions of this Resolution. A certificate signed and verified by the chairman and the secretary of any such meeting shall be conclusive evxdence and the only competent evidence of matters stated in such certificate relating to proceedings taken at such meeting. ARTICLE VIII. MISCELLANEOUS CONDITIONS SECTION 23: Ownership of Bonds. The person in whose name any Bond shall be registered shall be deemed and regarded as the absolute Owner thereof for all purposes, if any, of any such Bond, and the interest on any such Bond, shall be made only to or upon the order of the registered Ovner thereof or his legal representative. All such payments shall be valxd and effectual to satisfy and discharge the liability upon such Bond, including the redemption premium, if any, and interest thereon, to the extent of the sum or sums so paid. SECTION 24: Mutilated, Destroyed, Stolen or Lost Bonds. In case any Bond secured hereby shall become mutilated or be destroyed, stolen or lost, the Legislative Body shall cause to be executed and authenticated a new Bond of like date and tenor in exchange and substitution for and upon the cancellation of such mutilated Bond or in lieu of and in substitution for such Bond destroyed, stolen or lost, upon the Owner's paying the reasonable expenses and charges in connection therewith, and, in the case of a Bond destroyed, stolen or lost, his filing with the Legislative Body of evxdence satisfactory to it and to the Fiscal A~ent thereof that such Bond was destroyed, stolen or lost, and of his ownership thereof, and furnishxng the Legislative Body with indemnity satisfactory to SECTION 25: Cancellation of Bonds. All Bonds paxd or redeemed, either at or before maturity, shall be cancelled upon the payment or redemption of such Bonds, and shall be delivered to the Fiscal A~ent when such payment or redemption is made. All Bonds cancelled under any of the provisions of thxs Resolution shall be destroyed by the Fiscal A~ent, which shall execute a certificate in duplicate describing the Bonds so destroyed, and shall retain said executed certificate in its permanent files for the Bonds. SECTION 26: Additional Bonds. If at any time the Community Facilities District determines that it will not have sufficient monies available from other sources to pay its share of the costs of the construction or acquisition of the Public Facilities, the Community Facilities DistrXct may provide for the issuance of and sell Additional Bonds in such prxncipal amount as it estimates will be needed for such purpose, subject to the followxng conditions precedent to such sale: (a) The amount of such Additional Bonds, when combined with the Series '~" Bonds, shall not exceed the amount authorized for the Community Facilities District. (b) The Community Facilities District shall be in compliance with all covenants set forth in this Resolution. Resolution No. 85-241 Page 14 (c) A certificate of the City Manager demonstrating that the sum of (1) the Special Taxes which would be levied by the C~nmunity Facilities District based upon the then taxable property in the Community Facilities District and the Special Tax rate then approved for the Fiscal Year in which debt service on the Additional Bonds will first come due plus (2) the amounts to be received by the City pursuant to the Loan and Fledge Agreement for saxd Fiscal Year will be at least equal to one hundred ten percent (110%) of the Kaximum Annual Debt Service on Outstanding Bonds following the issuance of such Additional Bonds; and (d) The Additional Bonds shall be on such terms and conditions as may be set forth in a supplemental resolution, which shall provide of (i) Bonds substantially in accordance with the terms of this Resolution, (ii) Additional Bonds maturing on August 1 in such amounts and at such times as to provxde level annual debt service with sinking fund redemption, (iii) Additional Bonds not having a final maturity prior to the maturity of the Series '~" Bonds, and (iv) the deposit of a portion of the Additional Bond proceeds into the Bond Reserve Fund in an amount sufficient, together with the balance of the Bond Reserve Fund, to equal the Bond Reserve Fund Requirement on all Bonds, including the Bonds issued pursuant to this Resolution and the Additional Bonds. SECTION 27: Parity of Bonds. If Bonds are authorized and issued in series, regardless of number, all Bonds shall be on an equal parity, all Bonds are entitled to share equally in the proceeds of any levied Special Tax, and no series, subsequent or prior, would have a priority position to any authorized Special Tax revenues. SECTION 28: Consumer Loan Bonds. All or a significant portion of the proceeds of the Bonds are not reasonably expected to be used directly or indirectly to make or finance loans (other than loans that enable the borrower to finance any governmental tax or assessment of general application for an essential governmental function or that are used to acquire or carry nonpurpose obligations) to persons who are not exempt persons so as to cause the Bonds to be deemed a consumer loan bond within the meaning of section 103(o) of the Internal Revenue Code of 1954, as amended, and any regulations of the United States Department of the Treasury issued thereunder. SECTION 29: Covenants. As long as the Bonds are outstanding and unpaid, the Community Facilities District shall (through its proper members, officers, agents or employees) faithfully perform and abide by all of the covenants, undertakings and provisions contained in this Resolution or in any Bond issued hereunder, including the following covenants and agreements for the benefit of the Bondholders which are necessary, convenient and desirable to secure the Bonds and will tend to make them more marketable; provided, however, that said covenants do not require the Community Facilities District to expend any funds other than the Special Tax revenues. (a) Upon default of any Special Tax payment due, it will cause foreclosure proceedings to be brought within one hundred fifty (150) days of such default and thereafter diligently prosecute to completion such proceedings. (b) The Community Facilities District shall preserve and protect the security of the Bonds and the rights of the bondholders and defend their rights against all claims and demands of all persons. Until such time as an amount has been set aside sufficient to pay Outstanding Bonds at maturity or to the date of redemption if redeemed prior to maturity, plus unpaid interest thereon and premium, if any, to maturity or to the date of redemption if redeemed prior to maturity, the Community Facilities District will faithfully perform and abide by all of the covenants, undertakings and provisions contained in this Resolution or in any Bond issued hereunder. Resolution No. 8~-241 Page (c) The Community Facilities District will diligently carry out and continue to completion with all practical dispatch, the acquisition and construction of the Public Facilities in accordance with the Act and the proceedings for the formation of the Community Facilities District and in a sound and economical manner. The Public Facilities to be acquired or constructed may be amended as provided in the Act, but no amendment may be made which would substantially impair the security of the Bonds or the rights of the bondholders. The Community Facilities District will maintain the Public Facilities in accordance with customary and reasonable maintenance and repair practices for such facilities. (d) Except as otherwise permitted herein, the Community Facilities District will not issue any other obligations payable, as to principal or interest, from the Special Tax revenues which have, or purport to have, any llen upon the Special Tax revenues superior to or on a parity with the lien of the Bonds herein authorized; previded, however, that nothing in this Resolution shall prevent the Community Facilities District from issuing and selling, pursuant to law, refunding bonds or other refunding obligations payable fr~a and having a first lien upon the Special Tax revenues, if such refunding bonds or other refunding obligations are issued for the purpose of, and are sufficient for the purpose of, refunding all of the Bonds authorized by this Resolution and then Outstanding. (e) The Community Facilities District will duly and punctually pay or cause to be paid the principal of an interest on each of the Bonds issued hereunder on the date, at the place and in the manner provided in said Bonds, solely from the Special Tax revenues and other funds as may he herein provided. (f) The Community Facilities District will each year levy the Special Tax described in Ordinance No. 263 to the extent necessary and permitted by the Act and these proceedings in order to yield, together with the monies received pursuant to the Loan and Pledge A~reement, the required debt service payments and to replenish the Bond Reserve Fund as provided for herein. (g) The Community Facilities District will at all time keep, or cause to be kept, proper and current books and accounts (separate from all other records and accounts) in which complete and accurate entries shall be made of all transactions relating to the acquisition or construction of the Public Facilities and the Special Tax revenues and other funds herein provided for. (h) The Coemunlty Facilities District shall preserve and protect the security of the Bonds and the rights of the bondholders and defend their rights against all claims and demands of all persons. Without hmiting the generality of the foregoing, the Community Facilities District covenants and agrees to contest by court action or otherwise (a) the assertion by any officer of any government unit or any other person whatsoever against the Community Facilities District that (i) the Act is unconstitutional, '(ii) the Special Tax is invalid, or (iii) the Special Tax revenues cannot be paid by the Co~nunity Facilities District for the debt service on the Bonds, or (b) any other action affecting the validity of the Bonds or diluting the security therefor, or (c) any assertion by the United States of America or any department or agency thereof or any other person that the interest received hy the bondholders is tanable under the Federal income tax laws. (1) The C~unity Facilities District will make no use of the proceeds of the Bonds which will cause the Bonds to be "arbitrage bonds" subject to Federal income taxation by reason of Section 103(c) of the Internal Revenue Code of 19~4, as amended. To that end, so long as any of the Bonds are Outstanding, the Community Facilities District, with respect to the proceeds of the Bonds, shall comply with all requirements of said Sectxon 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. Resolution No. 85-241 Page 16 (j) 1~nenever any property in the Community Facilities District which is owned by any governmental entity and leased by such governmental entity to any private person or persons for przvate use, the property shall be assessed and taxed in the same manner as privately owned property. (k) The Community Facilities District shall neither authorize nor permit advance payment of any special tax obligation so as to impair the security for the Bonds. SECTION 30: Arbitrase Certificate. On the basis of the facts, estimates and circumstances now in existence and in existence on the date of issue of the Bonds, as determined by the Treasurer, said Treasurer is hereby authorized to certify that it is not expected that the proceeds of the Bonds will be used in a manner that would cause the Bonds to be arbitrage bonds. Such certification shall be delivered to the purchaser together with the Bonds. SECTION 31: Defeasance. If the Commaunity Facilities District shall pay or cause to be paid, or shall have made provisions to pay, or there shall have been set aside in trust funds to pay, to the holders of the Bonds, the principal an interest, and premium, if any, to become due thereon, then the pledSe of the Special Tax revenues and all other rights granted hereby shall thereupon cease, terminate and become void and be discharged and satisfied, and Special Tax revenues shall no longer be payable to the Fiscal A~ent on account of the Bonds. SECTION 32: Desianation of Fiscal A~ent. The BANK OF A~RICA NT & SA is hereby designated Fiscal Agent with respect to these proceedings and the Bonds to be issued. The Fiscal Agent shall act as the agent and depository of 'the Community Facilities District for the purpose of receiving Special Tax revenues and other funds as provided in this Resolution, to hold, allocate, use and apply such Special Tax revenues and other funds as provided in this Resolution, and to perform such other duties and powers of the Fiscal Agent as are prescribed in this Resolution. The Legislative Body may remove the Fiscal Agent initially appointed or any successor thereto, and in such case shall forthwith appoint a successor thereto authorized to conduct and conducting business in the State of California. SECTION 33: Official Statement. The Official Statement, as prepared and submitted, is hereby approved and adopted, and execution and distribution of the Official Statement to prospective purchasers of the Bonds is hereby authorized. A copy of said Official Statement shall be kept on file with the transcript of these proceedings and remain open for public inspection. Authority to approve any changes therein is hereby delegated to the City Nanager or City attorney, whose decision with respect to such changes shall be final and binding. The City Nanager is authorized to execute the Official Statement. SECTION 34: Authority to Levv Soecial Tax. The Legislative Body, on behalf of the Community Facilities District, shall levy the Special Tax described in Ordinance No. 263 to pay principal, interest and other periodic costs of the bonds described herein pursuant to the Act. SECTION 35: Authority to Increase the Snecial Tax Levv. In the event that a portion of the property within the Community Facilities District shall become exempt, wholly or partially, from the levy of the Special Tax specified in Ordinance No. 263, the Legislative Body shall, on behalf of the Community Facilities District, increase the levy to the extent necessary and permitted by law and these proceedings upon the remaining property within the Community Facilities District which is not delinquent or exempt in order to yield the required debt service payments. The amount of the annual Special Tax will be set on or before each August 10. Resolution No. 8~-241 Page 1/ SECTION 36: Proceedings Constitute Contract. The provisions of this Eesolution, of the resolutions providing for the sale of the Bonds and awarding the Bonds and fixing the interest rate thereon, and of any other resolution supplementing or amending this Resolution, shall constitute a contract between the Community Facilities District 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 mandamns, accounting, mandatory injunction or any other suit, action or proceeding at law or in equity that is now or may hereafter be authorized under the laws of the State of California in any court of competent jurisdiction. Said contract is made under and is to be construed in accordance with the laws of the State of California. SECTION 37: Actions by Fiscal A~ent as AttorneY-in-Fact. Any suit, action or proceeding which any Bondholder shall have the right to bring to enforce any right or remedy hereunder may be brought by the Fiscal A~ent for the equal benefit and protection of all Bondholders similarly situated and the Fiscal Agent is hereby appointed (and the successive registered owners of the Bonds issued hereunder, by taking and holding the same, shall be conclusively deemed so to have appointed it) the true and lawtul attorney-in-fact of the respective registered owners of the Bonds for the purpose of bringing any such suit, action or proceeding, and to do and perform any and all acts and thxngs for and on behalf of the respective registered owners of the Bonds as a class or classes as may he necessary or advisable in the opinion of the Fiscal Agent as such attorney-in-fact. SECTION 38: CUSIP Numbers. CUSIP identification numbers will be imprinted on the Bonds, but such numbers shall not constitute a part of the contract evidenced by the Bonds and no liability shall hereafter attach to the Community Facilities District or any of the officers of agents thereof because of or on account of said numbers. Any error or omission with respect to saxd numbers shall not constitute cause for refusal by the successful bidder to accept delivery of and pay for the Bonds. SECTION 39: Severability. If any covenant, agreement or provxsion, or any portion thereof, contained in this Resolution, or the application thereof to any person or circumstance, is held to be unconstitutional, invalxd or unenforceable, the remainder of this Resolution and the application of any such covenant, agreement or provisions, or portion thereof, to other persons or circumstances, shall he deemed severable and shall not be affected, and this Resolution and the Bonds issued pursuant hereto shall remaXn valxd and the Bondholders shall remain all valid rights and benefXts accorded to them under this Resolution and the Constitution and laws of the State of Calltornia. If the provisions relating to the appointment and duties of a Fiscal Agent are held to be unconstitutional, invalid or unenforceable, said duties shall be performed by the Treasurer. SECTION 40: Modifications to Resolution. The City Manager is hereby authorized to make minor changes and modifications not of a substantative nature to the terms and conditions as set forth in thXs Resolution as requested by insurers or rating agencies, as it relates to the issuance and sale of tuese Bonds. Any such changes shall be subject to written approval of Bond Counsel, and any change of a substantative nature shall he submitted to the City Council for final approval. ARTICLE IX. BOND FORM SECTION 41: Form of Bonds. The format of the Bonds as authorized and to be issued for these proceedings shall be substantially in the form as set forth in the attached, referenced and incorporated-Exhibit '~". PASSED, APPROVED, and ADOPTED this 7th day of August, 1985. Resolution No. 85-241 Page 18 AYKS: NOES: ABSENT: Wright, Buquet, Mikeis, Dahl, King None None ATTEST: D. Mikels, Mayor _ ~ [ c (_ ~ ,- ,s/.~ Beverly fA. Authelet, City Clerk I, BEVERLY A. AUTHELET, CITY CLERK of the City of Rancho Cucamonga, California, do hereby certify that the foregoing Resolution was duly passed, approved, and adopted by the City Council of the City of Rancho Cucamonga, California, at a regular meeting of said City Council held on the 7th day of August, 1985. Executed this 8th day of August, 1985 at Rancho Cucamonga, California. Beverly A. Authelet, City Clerk Resolution No. 8~-241 PaSe 19 EXHIBIT "A" FORM OF BOND United States of America State of California Number ( ) ($ ) CITY OF RANCHO CUCAMONGA COMMUNITY FACILITIES DISTRICT NO. 84-1 (DAY CREEK DRAINACE SYSTEM) SPECIAL TAX BONDS SERIES '~" INTEREST RATE: MATURITY DATE: BOND DATE: CUSIP: COMMUNITY FACILITIES DISTRICT NO. 84-1 (DAY CREEK DRAINACE SYSTEM) of the City of Rancho Cucamonga, County of San Bernardino, State of California, duly organized and existins under and by virtue of the 'Mello-Roos Community Facilities Act of 1982", as amended, Sections 53311 and following of the Government Code of the State of California (the '~ct"), hereby acknowledges its indebtedness and prnmxses to pay to or reRistered assiRns. the sum of Dollars on the maturity date stated above with interest thereon at the rate per annum, stated above, interest payable sexannually on the first days of February and August of each and every year commaencinE February 1, 1986, and continuing until this bond is paid. Both principal of and any premium upon the redemption of this bond prior to maturity are payable in lawful money of the United States of America upon presentation of this bond at the office of the Fiscal A~ent in Los AnEeles, California. Interest shall be paid by check or draft mailed to the registered owner of record as of the close of business on the fifteenth day of the month next preceding the interest payment date at the address shown on the registration books. Interest on this bond shall be payable from the interest payment date next preceding the date of registration hereof, unless such date of registration is an interest payment date, in which event interest will be payable from such date of registration, or unless such date of registration is prior to the date of bonds, in which event interest will be payable from the date of sa~d bonds. Unless this bond matures on or prior to August 1, 1992, it is redeemable prior to maturity in accordance with the provisions for redemption endorsed hereon. Any tax for the payment hereof shall be limited to the annual special tax authorized under the Act and Ordinance No. 263 adopted by the City Council of the City on June 5, 1985, to be collected within Community Facilities District No. 84-1 (Day Creek Drainage System) of said City, except to the extent that provision for payment has otherwise been made by the City Council, as may be permitted by law. The bonds do not constitute obligations of the City of Rancho Cucamonga or the Community Facilities District for whxch saxd City or the Community Facilities District is obligated to levy or pledge, or has levied or pledged, general or special taxation other than as described hereinabove. Resolution No. 85-241 Page 20 The City Council has convenanted for the beneflt of the owners of the bonds that it rill commence within one hundred fifty (150) days and diligently pursue to completion appropriate foreclosure actions in the event of delinquencies of any special tax installments levied for payment of principal and interest. REFERENCE IS HADE TO THE FURTHER PROVISONS OF THIS BOND SET FORTH ON THE REVERSE HEREOF WHICH S[L~LL FOR ALL PURPOSES HAVE THE SANE EFFECT AS THOUGH FULLY SET FORTH HEREIN. This bond shall not become valid or obligatory for any purpose until the certificate of authentication and registration hereon endorsed shall have been dated and signed by the Fiscal A~ent. IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts, conditions and things required by law to exist, happen and be performed precedent to and in the issuance of this bond have existed, happened and been performed in due time, form and manner as required by law, and that the amount of this bond, together with all other indebtedness of said Community Facilities District, does not exceed any debt limit prescribed by the laws or Constitution of the State of California. IN WITNESS WHEREOF, Community Facilities District No. 84-1 (Day Creek Drainage System) has caused this bond to be si~ned in facsimile by the Nayor and City Clerk of the City of Rancho Cucamonga, California. CERTIFICATE OF AUTNENTICATION AND REGISTRATION This is one of the bonds described in the Resolution of Issuance of the City Council of the City of Rancho Cucamonga, which has been registered (SEAL) CONHUNITY FACILITIES DISIRICT NO. 84-1 (DAY CREEK DRAINAGE SYSTEM) MAYOR, CITY OF RANCHO CUCANONGA, FUR CONNUNITY FACILITIES DISTRICT NO. 84-1 (DAY CREEK DRAINAGE SYSTEM) BANK OF ANERICA NATIONAL TRUST & SAVINGS ASSOCIATION as Fiscal A~ent CLERK, CITY OF RANCH0 CUCANONCA, FUR COMMUNITY FACILITIES DISTRICT NO. 84-1 (DAY CREEK DRAINAGE SYSTEH) By: AUTHORIZED OFFICER PROVISIONS OF REDEMPTION OPTIONAL REDEMPTION: The Bonds maturing on or before August 1, 1992, are not subject to call and redemption prior to maturity. The Bonds maturing on and after August 1, 1993, may be called before maturity and redeemed at the option of the Community Facilities District, from any source of funds, on August 1, 1992, or on any Interest Payment Date thereafter as a whole or in part, but not in a total redemption amount of less the $20,000.00. The Bonds are subject to optional redemption in inverse order of maturity (if less than all of the Bonds Outstanding of any maturity are called for redemption, such Bonds to be so redeemed shall be selected by the Trustee by lot), at a price equal to the principal amount thereof plus accrued interest, plus a premium equal to one-half percent (.501} of the principal amount of bonds so called for redemption for each year or portion thereof from the date of redemption to the scheduled maturity date, but in no event Resolution No. 8)-241 Page 21 HANDATORY SINKING FUND REDEMPTION: The Term Bonds maturing August 1,200) are subject to mandatory sinking fund redemption prxor to maturity at a redemption prxce equal to 1001 of the principal amount to be redeemed plus accrued interest to the date of redemption. The Term Bonds to be redeemed will be selected by lot. For the purposes of such selection, Term Bonds will be deemed to consist of $5,000 portions, and any such portxon may be separately redeemed. The Term Bonds will be redeemed on August 1 in the principal amounts and years as shorn in the folioring redemption schedule: Year Princival Redeemed 2000 $i,210,000.00 2001 $1,320,000.00 2002 $1,445,000.00 2003 $1,575,000.00 2004 $1,725,000.00 2005 $1,880,000.00 PROVISIONS FOR REGISTRATION Each registration and transfer of registration of thxs bond shall be entered by the Fiscal Agent in books kept by it for this purpose and authenticated by its manual signature upon the certificate of authentication and registration endorsed hereon. No transfer hereof shall be valxd for any purpose unless made by the registered owner, by execution of the form of assignment endorsed hereon, and authenticated as herein provided, and the principal hereof, interest hereon and any redemption premxum shall be payable only to the registered owner or to such owner's order. Interest on this bond shall be payable to the person whose name appears upon the registry books as the registered owner hereof as of the dose of business on the fifteenth day preceding the interest payment date, or to such person's order. The Fiscal Agent shall require the bond owner requesting transfer or exchange to pay any tax or other governmental charge required to be paxd with respect to such transfer or exchange. A~ S IGNNEN T For value received, the undersigned do(es) hereby sell, assign and transfer unto the within-mentioned registered bond and hereby irrevocably constitute(s) and appoint(s) attorney, to transfer the same on the books of the Fiscal Agent wxth full power of substitution in the premises. Date: Signature Guaranteed by: Notice: The assignor's sXgnature to thxs assignment must correspond with the name as it appears upon the face of the within bond in every particular, without alteration or any change whatever.