CC Resolution 1989-093^#:] CITY COUNCIL OF THE CITY OF LA QUINTA
RESOLUTION NO. 89-93
RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF LA QUINTA, CALIFORNIA, PROVIDING FOR THE
ISSUANCE AND SALE OF LIMITED OBLIGATION
IMPROVEMENT BONDS OF SAID CITY, IN AN
AGGREGATE PRINCIPAL AMOUNT OF $1,153,973.62
FOR ASSESSMENT DISTRICT NO. 89-2.
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^#:] TABLE OF CONTENTS
Page
SECTION 1. UNPAID ASSESSMENTS..................................2
SECTION 2. ISSUANCE OF BONDS; MATURITY
OF PRINCIPAL........................................2
SECTION 3. INTEREST............................................3
SECTION 4. EXECUTION AND AUTHENTICATION........................3
SECTION 5. MANNER AND PLACE OF PAYMENT.........................4
SECTION 6. REDEMPTION PRIOR TO MATURITY........................4
SECTION 7. TRANSFER AND REGISTRATION...........................5
SECTION 8. TRANSFER AND EXCHANGE OF BONDS......................5
SECTION 9. BONDS MUTILATED, DESTROYED,
STOLEN OR LOST......................................6
SECTION 10. PREPARATION OF DEFINITIVE BONDS;
TEMPORARY BONDS.....................................6
SECTION 11. REDEMPTION FUND.....................................7
SECTION 12. BOND PROCEEDS.......................................7
SECTION 13. RESERVE FUND........................................8
SECTION 14. IMPROVEMENT FUND....................................9
SECTION 15. PAYING AGENT........................................9
SECTION 16. UNPAID ASSESSMENTS AS TRUST FUND.....................9
SECTION 17. TAX COVENANTS.......................................10
SECTION 18. REBATE OF EXCESS INVESTMENT
EARNINGS............................................12
SECTION 19. DEFINITIONS.........................................15
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SECTION 20. INVESTMENT ON FUNDS................................17
SECTION 21. COVENANTS..........................................18
SECTION 22. DELINOUENT ASSESSMENTS..............................19
SECTION 23. INCONTESTABILITY...................................19
SECTION 24. CONTRACT WITH BONDHOLDERS..........................19
SECTION 25. CESSATION OF AGREEMENTS............................20
SECTION 26. PARTIAL INVALIDITY..................................20
SECTION 27. LIBERAL CONSTRUCTION...............................20
SECTION 28. NO CITY OBLIGATION..................................21
SECTION 29. AMENDMENTS..........................................21
SECTION 30. AUTHORIZATION OF OFFICERS...........................22
SECTION 31. EFFECTIVE DATE.....................................22
EXHIBIT A
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^#:] RESOLUTION NO. 89-93
RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF LA qUINTA, CALIFORNIA, PROVIDING FOR THE
ISSUANCE AND SALE OF LIMITED OBLIGATION
IMPROVEMENT BONDS OF SAID CITY, IN AN
AGGREGATE PRINCIPAL AMOUNT OF $1,153,973.62
FOR ASSESSMENT DISTRICT NO. 89-2
WHEREAS, on May 16, 1989 the City Council of the City of La
Quinta the tcity") adopted Resolution No. 89-56 the
Resolution of Intention") declaring its intention, pursuant to
the provisions of the Municipal Improvement Act of 1913
Division 12 of the Streets and Highways Code of the State of
California), to order the acquisition of certain property and
the construction of certain improvements, and appurtenances and
appurtenant work and incidental costs and expenses in
connection therewith and to form Assessment District No. 89-2
the Assessment District"); and
WHEREAS, by its Resolution No. 89-82 adopted on
June 22, 1989, this City Council has authorized the formation
of the Assessment District, has approved a final Engineer 5
Report describing the public improvements to be constructed and
acquired pursuant to these proceedings the Improvements"),
and has confirmed the assessment and diagram for the Assessment
District; and
WHEREAS, on Auq. 1, 1989, the City Council adopted
Resolution No. 89-92 determining the assessments remaining
unpaid following the 30-day cash payment period; and
WHEREAS, by this Resolution, the City now wishes to provide
for the issuance of bonds, in the manner provided in the
Improvement Bond Act of 1915 Division 10 of the Streets and
Highway Code of the State of California) the Act"), and
specifically to provide for the issuance of such bonds in a
principal amount of $1,153,973.62, to represent and be secured
by the unpaid assessments in the Assessment District the
Bonds");
WHEREAS, on June 22, 1989 Wulff, Hansen & Co. the
Purchaser") submitted the bid with the lowest net interest
cost on the Bonds and by its Resolution No. 89-84
the City awarded the Bonds to the Purchaser; and
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^#:] NOW, THEREFORE, the City Council of the City of La Ouinta,
DOES HEREBY FIND, DETERMINE, RESOLVE AND ORDER as follows:
Section 1. Unpaid Assessments. The assessments now
remaining unpaid as determined by Resolution No. 89-92 are in
the aggregate amount of $1,153,973.62. For a particular
description of the lots or parcels of land bearing the
respective assessment numbers and upon which assessments remain
unpaid, severally and respectively, reference is hereby made to
the assessment and to the diagram recorded in the office of the
Public Works Manager acting as Superintendent of Streets.
Section 2. Issuance of Bonds; Maturity of Principal.
Serial bonds shall be issued upon the security of said unpaid
assessments in the aforesaid amount, in accordance with the
provisions of the Act and the proceedings thereunder duly had
and taken. The Bonds shall be issued in one series, in an
aggregate amount of $1,153,973.62.
Each of said Bonds shall be designated *United States of
America, State of California, County of Riverside, City of La
Quinta, California, Limited Obligation Improvement Bond,
Assessment District No. 89-2*, and shall be a serial bond of
the denomination of $5,000 each, except one bond shall be of
the denomination of $43,973.62 or any integral multiple of
$5,000 over and above such amount, herein referred to as the
lIBondsTl). The Bonds shall be issued and shall mature on
September 2 of each year in the principal amounts and at the
interest rates hereafter set forth:
YEAR AMOUNT INTEREST RATE
1990 $ 43,973.62 5.75%
1991 $ 50,000.00 6.00%
1992 $ 55,000.00 6.25%
1993 $ 60,000.00 6.35%
1994 $ 60,000.00 6.40%
1995 $ 65,000.00 6.45%
1996 $ 70,000.00 6.50%
1997 $ 75,000.00 6.60%
1998 $ 80,000.00 6.65%
1999 $ 85,000.00 6.70%
2000 $ 90,000.00 6.75%
2001 $ 95,000.00 6.75%
2002 $100,000.00 6.75%
2003 $110,000.00 6.75%
2004 $115,000.00 6.75%
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^#:] The Bonds shall be in the form of fully registered bonds
without coupons. The Bonds shall be dated as of August 2,
1989. The Bonds shall be substantially in the form set forth
in Exhibit A hereto attached and by reference made a part
hereof.
Section 3. Interest. The Bonds shall bear interest at the
rates set forth in Section 2 hereof, and such interest shall be
payable on September 2 and March 2 of each year, commencing
March 2, 1990.
Each Bond shall bear interest from the interest payment
date next preceding the date of registration thereof unless:
i) it is registered between the 15th day immediately preceding
each interest payment date the *Record Date*') and on or before
such interest payment date, in which event it shall bear
interest from such interest payment date, or ii) it is
registered prior to the first Record Date, in which event it
shall bear interest from its dated date. Registration of Bonds
issued upon exchanges and transfers of Bonds shall be dated so
that no gain or loss of interest shall result from the exchange
or transfer. Interest on the Bonds shall be paid by the Paying
Agent by check or draft mailed by first class mail on the
interest payment date to the registered owner of each Bond as
his name and address appear on the register kept by the Agent,
or at such address as may have been filed with the Agent for
that purpose, as of the close of business on the Record Date.
Each Bond shall continue to bear interest after maturity at
the rate stated therein to the date of payment, provided that
on the date it is presented for payment, payment thereof is
refused on the sole ground that there is not sufficient money
in the Redemption Fund hereinafter referred to with which to
pay same. If a Bond is not presented at maturity, and there is
sufficient money in the Redemption Fund with which to pay the
same, interest thereon shall run only until maturity.
Section 4. Execution and Authentication. The Bonds shall
be signed on behalf of the City by the City Treasurer and the
City Clerk and the corporate seal of the City shall be affixed
to the Bonds. Such signatures and corporate seal may be
reproduced on the Bonds by engraved, printed or lithographed
facsimile thereof, and such signing and sealing shall
constitute and be a sufficient and binding execution of each
and every one of the Bonds. If any officer whose signature
appear* on the Bonds ceases to be such officer before the
delivery of the Bonds to the purchaser, such signature shall be
as valid as if such officer remained in office until the
delivery of the Bonds.
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^#:] Only such of the Bonds as shall have printed or engraved
thereon a certificate of authentication and registration,
substantially in the form set forth in Exhibit A, hereto
attached and by reference made a part hereof, duly executed by
the Paying Agent, shall be entitled to any rights, benefits or
security under this resolution. No Bond shall be valid or
obligatory for any purpose unless and until such certificate of
authentication and registration shall have been duly executed
by the Paying Agent, and such certificate of the Paying Agent
upon any such Bond shall be conclusive and the only evidence
that such Bond has been duly authenticated and delivered under
this resolution. The Paying Agent 5 certificate of
authentication and registration on any Bond shall be deemed to
have been duly executed if signed by an authorized signatory of
the Paying Agent, but it shall not be necessary that the same
person sign the certificate of authentication and registration
on all of the Bonds that may be issued hereunder at any one
time.
Section 5. Manner and Place of Payment. The principal on
the Bonds shall be payable in lawful money of the United States
of America at the corporate trust office of the Paying Agent in
Los Angeles, California. Interest on the Bonds shall be paid
by the Paying Agent by check or draft as provided in Section 3
of this Resolution.
Section 6. Redemption Prior to Maturity. The outstanding
Bonds may be redeemed and paid in advance of maturity from
prepaid assessments, the proceeds of refunding bonds, or other
moneys deposited in the Redemption Pund, upon the second day of
September or March in any year by giving the notice provided by
law at least 30 days prior to the date of redemption and by
paying principal and accrued interest together with a premium
equal to three percent 3%) of the principal amount of the
Bonds to be redeemed. Such notice shall specify the maturities
of the Bonds to be redeemed, the redemption date and the place
or places where amounts due upon such redemption will be
payable and, if less than all of the Bonds of any like maturity
are to be redeemed, the letters and numbers or other
distinguishing marks of such Bonds so to be redeemed, and, in
the case of a Bond to be redeemed in part only, such notice
shall also specify the portion of the principal amount thereof
to be redeemed.
If there shall be so called for redemption less than all of
a Bond, the City shall execute and the Paying Agent shall
authenticate and deliver, upon the surrender of such Bond to
the Paying Agent, without charge to the owner thereof, for the
unredeemed balance of the principal amount of the Bond so
surrendered, a Bond or Bonds of the same maturity and of any
authorized denomination. All Bonds surrendered for redemption
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^#:] shall be canceled and returned to the Treasurer or destroyed by
the Paying Agent as permitted by law and a certificate of
destruction delivered to the City.
Section 7. Transfer and Registration. All of the Bonds
issued under this resolution shall be subject to the provisions
for registration and transfer contained in this resolution and
in the Bonds. So long as any of the Bonds shall remain
outstanding, the Paying Agent shall maintain and keep, at its
corporate trust office in Los Angeles, California, a bond
register, being sufficient books for the registration or
transfer of the Bonds, and, upon presentation of a bond for
registration and transfer at said office, the Paying Agent
shall register or cause to be registered therein, and permit to
be transferred thereon, under such reasonable regulations as
the City or the Paying Agent may prescribe, any bond entitled
to registration or transfer. So long as any of the Bond remain
outstanding, the District shall make all necessary provisions
to permit the exchange of Bonds at said office of the Paying
Agent.
Section 8. Transfer and Exchange of Bonds.
a) Each Bond shall be transferable only upon the Bond
register of the Paying Agent referred to in Section 7 of this
Resolution by the registered owner thereof in person or by his
attorney duly authorized in writing, upon surrender thereof,
together with a written instrument of transfer satisfactory to
the Paying Agent duly executed by the registered owner or his
duly authorized attorney. Neither the City nor the Paying
Agent shall be required to make any such exchange or
registration of transfer during the fifteen days immediately
preceding any September 2 or March 2. Upon the transfer of any
such Bond, the City shall execute and the Paying Agent shall
authenticate and shall issue in accordance with the provisions
of this Resolution and in the name of the transferee a new Bond
or Bonds of the same aggregate principal amount and maturity as
the surrendered Bond or Bonds. All Bonds surrendered in any
such exchanges or transfers shall be canceled by the Paying
Agent and destroyed as permitted by law and a certificate of
destruction delivered to the City.
b) The Paying Agent may deem and treat the person in
whose name any outstanding Bond shall be registered upon said
Bond register of the Paying Agent as the absolute owner of such
Bond, whether such Bond shall be overdue or not, for the
purpose of receiving payment of, or on account of, the
principal, or redemption price, if any, of and interest on such
Bond and for all other purposes. All such payments so made to
any such registered owner or upon his order shall be valid and
effectual to satisfy and discharge the liability upon such Bond
to the extent of the sum or sums so paid, and neither the City
nor the Agent shall be affected by any notice to the contrary.
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^#:] c) For every such exchange or transfer of Bonds, whether
temporary or definitive, the City or the Paying Agent may
impose a charge sufficient to reimburse them for any tax, fee
or other governmental charge required to be paid with respect
to such exchange or transfer other than such as may have been
imposed by the City), which sum or sums shall be paid by the
person requesting such exchange or transfer as a condition
precedent to the exercise of the privilege of making such
exchange or transfer.
Section 9. Bonds Mutilated, Destroyed, Stolen or Lost. In
case any Bond shall become mutilated or be destroyed, stolen or
lost, the City shall execute and the Paying Agent shall
authenticate and deliver a new Bond of like maturity and
principal amount as the Bond so mutilated, destroyed, stolen or
lost, in exchange and substitution for such a mutilated Bond,
upon surrender and cancellation of the mutilated Bond or in
lieu of and in substitution for a destroyed, stolen or lost
Bond, upon filing with the City and the Paying Agent evidence
satisfactory to the City and the Paying Agent that the Bond has
been destroyed, stolen or lost and proof of ownership thereof,
and upon furnishing the City and the Paying Agent with
indemnity satisfactory to each, complying with such other
reasonable regulations as the City and the Paying Agent may
impose; provided, however, that the City and the Paying Agent
shall so execute, authenticate and deliver such new Bond only
if the owner has paid the reasonable expenses and charges of
the Paying Agent. All mutilated Bonds so surrendered to the
Paying Agent shall be canceled and retired by the Paying Agent
or destroyed as permitted by law and a certificate of
destruction delivered to the City. If such Bond shall have
matured, instead of issuing a new Bond, the Paying Agent may
pay the same without surrender thereof.
Section 10. Preparation of Definitive Bonds; Temporary
Bonds. The definitive Bonds shall be lithographed or printed
on steel engraved borders. Until the definitive Bonds are
prepared, the City may execute, in the same manner as is
provided in Section 4, and the Paying Agent may authenticate
and deliver, in lieu of definitive Bonds, but subject to the
same provisions, limitations and conditions as the definitive
Bonds, except as to exchangeability for Bonds, one or more
temporary Bonds which shall be registered as to principal and
interest and may be in typewritten form), substantially of the
tenor of the definitive Bonds in lieu of which such temporary
Bond or Bonds are issued and with such omissions or insertions
of and variations from the terms and conditions thereof as may
be appropriate to temporary Bonds. The City at its expense
shall prepare and execute and the Paying Agent upon the
surrender of such temporary Bonds for exchange and the
cancellation of such surrendered temporary Bonds, without
charge to the holder thereof, shall authenticate and deliver in
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^#:] exchange therefor, at the corporate trust office of the Paying
Agent in Los Angeles, California, definitive Bonds of the same
aggregate principal amount and maturity as the temporary
Bonds. Any temporary Bonds issued and delivered pursuant to
this Resolution shall in all respects be entitled to the same
benefits and security as definitive Bonds issued pursuant to
this Resolution. All temporary Bonds surrendered in exchange
for a definitive Bond or Bonds shall be canceled and retired by
the Agent or destroyed as permitted by law and a certificate of
destruction delivered to the City.
Section 11. Redemption Fund.
a) The Treasurer shall establish and maintain a
redemption fund designated the Assessment District No. 89-2,
Redemption Fund" the Redemption Fund"). All sums received by
the Treasurer from the collection of the assessments and of the
interest and penalties thereon shall be deposited in the
Redemption Fund. The Treasurer shall disburse moneys from the
Redemption Fund to pay the principal of the Bonds and the
interest and redemption premium, if any, due thereon.
b) All Excess Investment Earnings, as defined in Section
18 hereof, realized from the investment of money in the
Redemption Fund shall be transferred to the Excess Investment
Earnings Fund created in Section 18 hereof.
c) In the event the Treasurer determines that there is
danger of an ultimate loss accruing to the Bondholders for any
reason, the Treasurer shall withhold payment on all matured
Bonds and interest on all Bonds outstanding and shall
immediately initiate proceedings pursuant to Part 12 of
Division 10 commencing with Section 8770) of the Streets and
Highways Code.
Section 12. Bond Proceeds. Upon delivery of the Bonds to
the purchaser thereof, the Treasurer, shall receive the
proceeds from the sale of the Bonds, and dispose of the
proceeds and moneys as follows:
1) Deposit in the Reserve Fund established in Section 13
hereof, the amount required by Section 13 of this
Resolution.
2) Deposit in the Redemption Fund an amount equal to
accrued interest on the Bonds, if any, from
August 2, 1989 to the Delivery Date.
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^#:] 3) After making the above deposits, the balance of
proceeds from the sale of the Bonds shall be deposited
in the Improvement Fund to pay costs of issuing the
Bonds and costs of the acquisition and construction of
the Improvements.
Section 13. Reserve Fund. There is hereby created a
special trust fund to be held by the Treasurer, designated as
the Assessment District No. 89-2 Reserve Fund," the Reserve
Fund"). There shall be initially deposited into the Reserve
Fund an amount equal to ten percent 10%) of the original
proceeds of the Bonds. The Reserve Fund shall constitute a
trust fund for the benefit of the Bondholders, and shall be
maintained, used, transferred, reimbursed and liquidated as
follows:
a) Whenever there are insufficient funds in the
Redemption Fund to pay the next maturing installment of the
principal of or interest on the Bonds, an amount necessary to
pay such deficiency shall be advanced from the Reserve Fund to
the Redemption Fund. The amounts so advanced shall be
reimbursed from the proceeds of redemption or sale of the
parcel* for which payment of delinquent installments of
assessments and interest thereon or real property taxes has
been made from the Reserve Fund; provided, however, if said
deficiency has been reimbursed to the Reserve Fund from
interest earnings, said amount shall be deposited in the
Redemption Fund and credited to the next installment of
assessments to be levied.
b) In the event an assessment is paid in advance, in
whole or in part, the assessment thus paid shall be
proportionally reduced based on the ratio of the total amount
initially provided for the Reserve Fund for such series of
Bonds to the total amount originally assessed in the
proceedings for the issuance of such series of Bonds, and the
amount thus determined shall be transferred from the Reserve
Fund to the Redemption Fund as a credit against the unpaid
assessment being paid.
c) All Excess. Investment Earnings realized from the
investment of money in the Reserve Fund in an amount in excess
of the yield on the Bonds, shall be transferred within fifteen
days of each anniversary of the Delivery Date to the Excess
Investment Earnings Fund created in Section 18 hereof. All
other income derived from investment of amounts held in the
Reserve Fund shall be retained in the Reserve Fund until the
aggregate amount held in the Reserve Fund is equal to 10% of
the original proceeds of Bonds then outstanding. Thereafter,
investment income on amounts held in the Reserve Fund shall be
transferred immediately upon receipt to the Redemption Fund.
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^#:] d) Whenever the balance in the Reserve Fund is sufficient
to retire all remaining outstanding Bonds, whether by advance
retirement or otherwise, collection of the principal and
interest on the assessments shall be discontinued and the
amounts held in the Reserve Fund shall be transferred to the
Redemption Fund for retirement of the Bonds.
e) At no time shall the amount of Bond proceeds deposited
in the Reserve Fund exceed an amount equal to 10% of the
original proceeds of the Bonds outstanding.
Section 14. Improvement Fund.
a) There is hereby created a special fund to be held by
the Treasurer and designated the Assessment District No. 89-2
Improvement Fund" the Improvement Fund"). All moneys in the
Improvement Fund shall be applied exclusively to the payment of
the acquisition costs of the Improvements and expenses
incidental thereto, including the costs of issuing the Bonds.
If and to the extent there shall be any surplus remaining in
the Improvement Fund after payment of all acquisition and
construction costs and all legal charges, claims and expenses
payable from such Fund, such surplus shall be applied as a
credit upon the assessment and upon any supplemental assessment
in the manner provided in the Act.
b) All Excess Investment Earnings realized from the
investment of money in the Improvement Fund shall be
transferred by the Treasurer for deposit into the Excess
Investment Earnings Fund created in Section 18 hereof.
Section 15. Paying Agent. This City Council hereby
appoints Security Pacific National Bank, Los Angeles,
California, as paying agent, transfer agent and registrar for
the Bonds the Paying Agent") to act in accordance with the
provisions of this Resolution and the Paying Agent Agreement.
The City Council hereby approves the form of Paying Agent
Agreement presented to this City Council and authorizes its
execution by the Mayor and the City Clerk in substantially the
form presented, with such minor changes or additions as they
may approve, the approval of such Agreement to be conclusively
established by the delivery thereof.
Section 16. Unpaid Assessments as Trust Fund. The unpaid
assessments set forth in Resolution No. 89** approved by this
City Council are determined by this City Council to be correct*
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and said unpaid assessments, together with the interest
thereon, shall remain and constitute a trust fund for the
redemption and payment of the Bonds of each and every series
and of the interest which may be due thereon.
At the time a parcel of land in the Assessment District is
divided into parcels or subdivided, the City, at the request of
the landowner requesting a division of the unpaid assessment,
will take such actions as may be reasonably requested of it to
apportion the assessment to all or any portion of the
subdivided parcels or lots in the manner provided in Part 10.5
of Division 10 of the Streets and Highways Code of the State of
California.
Section 17. Tax Covenants. The City covenants and agrees
to take no action which, in the opinion of Bond Counsel, would
result in the interest received by the Bondowners being
includable in gross income for federal income tax purposes. In
order to preserve the exclusion from gross income for federal
income tax purposes of interest due with respect to the Bonds,
the City covenants to comply with all applicable requirements
of the Code, together with any amendments thereto or
regulations promulgated thereunder necessary to preserve such
exclusion and specifically covenants, without limiting the
generality of the foregoing, that:
a) it will make no use of Gross Proceeds which at any time
will cause the Bonds to be arbitrage bonds" within the meaning
of Section 148 of the Code and applicable Regulations adopted
thereunder by the Internal Revenue Service;
b) it will not use in excess of 5% of the Net Proceeds of
the Bonds to make or finance loans to any person other than a
governmental unit other than loans which are used to acquire
or carry nonpurpose investments or are for the purpose of
enabling the borrower to finance any governmental tax or
assessment of general application for a specific essential
governmental function, all as set forth in Section 141(c) of
the Code);
c) it will not use nor permit the use of more than 10% of
the Net Proceeds of the Bonds for any private business use, or
enter into an arrangement such that more than 10% of the
principal of the Bonds or 10% of the interest due on the Bonds
during the term thereof is, directly or indirectly, secured by
any interest in i) property used or to be used for a private
business use or ii) payments in respect of such property or to
be derived from payments in respect of property, or borrowed
money, used or to be used for a private business use, all as
set forth in Section 141(b) of the Code, and, in the event that
both i) an amount in excess of five percent 5%) of the Net
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^#:] Proceeds is used for a private business use, and ii) an amount
in excess of five percent 5%) of the principal or five percent
5%) of the interest due on the Bonds during the term thereof
is, under the terms of the Bonds or any underlying arrangement,
directly or indirectly secured by any interest in property used
or to be used for said private business use or in payments in
respect of property used or to be used for said private
business use or is to be derived from payments, whether or not
to the City, in respect of property or borrowed money used or
to be used for said private business use, then such excess over
five percent 5%) of Net Proceeds used for a private business
use shall be used for a private business use related to the
governmental use of the improvement project, or take any other
action which would cause the Bonds to be private activity
bonds" within the meaning of Section 141(a) of the Code;
d) it will not take any action that would cause the Bonds
to be 11federally guaranteed't within the meaning of Section
149(b) of the Code and, in that regard, no portion of the
moneys contained in any of the Funds or Accounts created herein
shall be i) used in making loans guaranteed by the United
States or any agency or instrumentality thereof); ii)
invested directly or indire**ly in deposits or accounts insured
by the Federal Deposit Ins*- nce Corporation, Federal Savings
and Loan Insurance Corpora* &:n, National Credit Union
Administration or any other similar federally chartered
corporation; iii) otherwise invested directly or indirectly in
obligations guaranteed in whole or in part) by the United
States or any agency or instrumentality thereof); except 1)
during the three year period following issuance of the Bonds
and ending on the final expenditure of the Bonds proceeds; and
2) for amounts held in the Reserve Fund, or other reserve
funds satisfying Section 148(d) of the Code; 3) for amounts
held in the Redemption Fund and other bona fide debt service
funds; 4) for investments in obligations issued by the United
States Treasury; 5) for investments in obligations guaranteed
by the Federal National Mortgage Association, Government
National Mortqaqe Association or Federal Home Loan Mortgage
Corporation, or 6) for investments permitted under regulations
issued pursuant to Section 149(b)(3)(B) of the Code; and
e) i) it shall keep a detailed accounting of all
transactions contemplated under this Resolution or in any way
relating to the receipt or disbursement of any of the Gross
Proceeds of the Bonds for a period of six years after the later
of the date of payment of all Excess Investment Earnings to the
United States or the date on which the last of the Gross
Proceeds of the Bonds are disbursed; ii) except for the
investment of moneys in tax-exempt bonds or Gross Proceeds
invested during an applicable temporary period permitted under
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^#:]the Treasury Regulations, it will not allow Gross Proceeds of
the Bonds to be invested at any time in Nonpurpose Investments
with a yield in excess of the yield on the Bonds; iii) it will
neither invest Gross Proceeds nor cause Gross Proceeds to be
invested in Nonpurpose Investments if the yield on such
Nonpurpose Investments would be less than the yield that would
have resulted in an arm's-length transaction; and iv) it will
not sell or otherwise dispose of or cause to be sold or
otherwise disposed of Nonpurpose Investments, if such sale or
disposition would result in a smaller profit or larger loss
than would have resulted from a sale at fair market value
arrived at in an arm's-length transactiQn.
Section 18. Rebate Provisions. The City reasonably
expects to expend all of the bond proceeds, except amounts
deposited in the Reserve Fund, within six months and,
therefore, the rebate provisions of Section 148(f) of the Code
may not be applicable, except as to the Reserve Fund. If the
proceeds are not so expended and with regard to the Reserve
Fund in any event the following rebate provisions will be
applicable:
a) The City shall calculate Excess Investment
Earnings in accordance with paragraph b) and shall pay Excess
Investinent Earnings to the United States government in
accordance with paragraph c). The term 11Excess Investment
Earnings" means an amount equal to the sum of:
i) the excess of
A) the aggregate amount earned from the
Delivery Date on all Nonpurpose Investments in which
Gross Proceeds of the bonds are invested other than
amounts attributable to an excess described in this
subparagraph ii)), over
B) the amount that would have been earned
if the yield on such Nonpurpose Investments other
than amounts attributable to an excess described in
this subparagraph i)) had been equal to the yield on
the bonds,
plus
ii) any income attributable to the excess
described in paragraph i).
b) At or prior to the last day of the first
Computation Year, City shall calculate and cause to be
deposited with the Treasurer the Excess Investment Earnings
referenced in subparagraph i) of paragraph a) and the
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^#:]Treasurer shall deposit the same into a special fund hereby
created designated the tExcess Investment Earnings Fund."
Thereafter, prior to sixty 60) days following the last day of
each Computation Year, within sixty days following any optional
or mandatory redemption of the bonds other than regularly
scheduled sinking fund redemptions and on the date of the
retirement of the bonds, City shall calculate the amount of
Excess Investment Earnings referenced in subparagraphs i) and
ii) of paragraph a) and direct corresponding transfers into
the Excess Investment Earnings Fund.
c) Upon direction of City, the Treasurer shall pay
Excess Investment Earnings to the United States government in
installments with the first payment to be made not later than
sixty 60) days after the end of the fifth Computation Year and
with subsequent payments to be made not later than five 5)
years after the preceding payment was due. The City shall
assure that each installment is in an amount equal to at least
90 percent of the Excess Investment Earnings with respect to
the bonds as of the close of the computation period. Upon the
direction of City, which direction shall be given before sixty
60) days after the retirement of the bonds, City shall pay 100
percent of the theretofore unpaid Excess Investment Earnings of
the bonds. The Treasurer shall remit such payments to the
United States government at the address and in the manner
directed by City prescribed by the regulations as the same may
be in time to time in effect, together with such reports and
statements prepared by City as may be prescribed by such
Regulations.
d) The City shall keep and retain for a period of
six 6) years following the retirement of the bonds records of
the determinations made pursuant to this Section.
e) Fayments pursuant to this Section shall be made
to the maximum extent possible from moneys on deposit in the
Excess Investment Earnings Fund and, to the extent of any
deficiency therein for such purpose, shall be made from any
City moneys held by the Treasurer including the moneys held in
the Reserve Fund if no moneys for said purpose are otherwise
available from money in other funds held by the Treasurer. In
the event of any remaining deficiency in available moneys for
the purposes of such transfer, such deficiency shall be paid by
City.
f) After the payment of Excess Investment Earnings
to the United States government at the end of each 5 year
period as provided in subsection c) hereof, the Treasurer may
transfer any money in the Excess Investment Earnings Fund to
the Debt Service Fund.
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^#:] g) Notwithstanding the foregoing, the foregoing
method of computing Excess Investment Earnings may be modified,
in whole or in part, without the consent of the owners of the
bonds upon receipt by City of an opinion of Bond Counsel to the
effect that such modification will not adversely affect the
exclusion from gross income of interest on the bonds.
Section 19. Definitions. For thepurpose of this
Resolution, the following terms shall have the following
meanings:
Assessment District. The term Assessment District"
means that certain district of land designated as Assessment
District No. 89-2", and having the boundaries described in the
Final Engineer's Report approved by the City.
Bond Counsel. The term Bond Counsel" means an
attorney or firm of attorneys of nationally recognized standing
in matters pertaining to the tax-exempt status of interest on
tax-exempt obligations issued by states and their political
subdivision and acceptable to the City.
Bond Year. The term Bond Year" means the twelve 12)
month period commencing on the Delivery Date of the Bonds and
each twelve 12) month period thereafter.
Code. The term Code" means the Internal Revenue Code
of 1986.
Delivery Date. The term Delivery Date" means the
date the Bonds are delivered to the initial purchaser.
Gross Proceeds. The term Gross Proceeds" means any
proceeds of the bonds and any funds other than proceeds of the
bonds) that are part of a reserve or replacement fund for the
bonds within the meaning of Section 1.148-8T(d) of the
Regulations.
Improvements. The term Improvements" means those
public improvements set forth in the Final Engineer' 5 Report
relating to the Assessment District.
Net Proceeds. The term Net Proceeds" means the par
amount of the Bonds plus accrued interest and premium, if any,
less the amount of any original issue discount, less the
proceeds of the Bonds applied to pay costs of issuance, and
less any amount of proceeds of the Bonds deposited in the
Reserve Fund.
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^#:] Nonpurpose Investments. The term Nonpurpose
Investments" means any security or obligation other than an
obligation on which interest is excludable from gross income
for federal income tax purposes under Section 148(a) of the
Code) in which Gross Proceeds are invested and which is not
acquired to carry out the governmental purpose for which the
Bonds were issued.
Paying Agent Agreement. The term Paying Agent
Agreement" means that certain agreement between the City and
Security Pacific National Bank, as Paying Agent.
Permitted Investments. The term Permitted
Investments" shall have the meaning set forth in Section 20 of
this Resolution.
Rebate Calculation Period. The term Rebate
Calculation Period'1 means the twelve month period beginning on
the Delivery Date or any anniversary of the Delivery Date and
extending to but not including the next succeeding anniversary
of the Delivery Date.
Regulations. The term Regulations" means regulations
promulgated by the Department of Treasury relating to
obligations the interest on which is excludable from gross
income for federal income tax purposes.
Resolution of Intention. The term Resolution of
Intention means Resolution No.89-56 adopted by the La Quinta
City Council of the City of La Quinta on May 16, 1989.
Treasurer. The term Treasurer" means the person at
any time acting as the City Treasurer, and his successors from
time to time.
Yield. The term Yield" shall mean that yield which,
when used in computing the present worth of all payments of
principal and interest or other payments in the case of
Nonpurpose Investments which require payments in a form not
characterized as principal and interest) on a Nonpurpose
Investment or on the Bonds produces an amount equal to the
Purchase Price of such Nonpurpose Investment or the Bonds* as
the case may be, allcomputed as prescribed in the applicable
Regulations.
Section 20. Investment of Funds. Monies in the Redemption
Fund, the Reserve Fund and the Improvement Fund shall, whenever
practicable, be invested in legal investments for the City
under applicable law for moneys held pursuant to this
Resolution at the time when any of such moneys are to be
invested therein Permitted Investments"). Moneys in the
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^#:]Redemption Fund shall be invested and reinvested in Permitted
Investments, provided that such investments mature by their
terms prior to the date on which such invested amounts,
together with other moneys held in such fund and available for
such purpose are required to be paid in respect of principal of
or interest on the Bonds on any payment date. Moneys in the
Reserve Fund shall be invested solely in Government Obligations
investments set forth in Section 53635(b) of the Government
Code of the State of California) having a maturity not longer
than five years or the date at which it is anticipated that
such moneys will be needed, whichever comes first. Moneys in
the Excess Investment Earnings Fund shall be invested in
Government Obligations which mature before the date such
amounts are required to be paid to the United States.
Obligations purchased as an investment of moneys in any Fund or
Account held by the Treasurer hereunder shall be deemed to be
part of such fund. Except as provided in Section 18(b) hereof,
any or all interest or gain received from such investments or
moneys in any fund other than the Excess Investment Earnings
Fund) shall first be transferred to the Reserve Fund, if the
amount held in the Reserve Fund prior to any such transfer is
less than 10% of the principal amount of the outstanding Bonds
and, if the Reserve Fund is then in an amount equal to 10% of
the principal amount of the outstanding Bond but not more than
10% of the original proceeds of the Bonds), investment income
shall be deposited in the Redemption Fund and any loss incurred
in connection with such investments shall be debited against
the fund from which the investment was made.
Obligations purchased as an investment of moneys in
any of the Funds or Accounts shall be deemed at all times to be
a part of such respective fund and, except as provided in
Section 18(b) hereof, the interest accruing thereon and any
gain realized from an investment shall be credited to such fund
and any loss resulting from any authorized investment shall be
charged to such fund without liability to the City or the
members and officers thereof. The Treasurer shall sell at the
best price obtainable or present for redemption any obligation
purchased whenever it shall be necessary to do so in order to
provide moneys to meet any payment or transfer from such fund
as required by thisResolution and shall incur no liability for
any loss realized upon such a sale. The investment
constituting a part of the fund shall be valued at the lower of
cost or the then estimated or appraised market value of the
investment, provided, however, that investments in the Reserve
Fund and the Redemption Fund shall be valued at the cost
thereof. All money retained by the Baying Agent after three
years following payment of the Bonds shall be returned to the
City.
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^#:] Section 21. Covenants. So long as any of the Bonds issued
hereunder are outstanding and unpaid, the City makes the
following covenants with the owners of the Bonds under the
provisions of the Act and this Resolution, which covenants are
necessary, convenient and desirable to secure the Bonds and
tend to make them more marketable; provided, however, that said
covenants do not require the City to expend any funds or monies
other than the special assessments collected and amounts held
in the Reserve Fund.
1. Covenant Punctual Pavment. The City covenants that it
will duly and punctually pay or cause to be paid the principal
of and interest on every Bond issued hereunder, together with
the premium thereon, if any be payable, on the date, at the
place and in the manner mentioned in the Bonds in accordance
with this Resolution to the extent special assessments are
available therefor, that the payments into the Redem*tion Fund
and the Reserve Fund will be made, all in strict conformity
with the terms of said Bonds and this Resolution and that it
will faithfully observe and perform all of the conditions,
covenants and requirements of this Resolution and all
resolutions supplemental hereto and of the Bonds issued
hereunder and that time of such payment and performance is of
the essence of the City's contract with the owners of the Bonds.
2. Commence Foreclosure Proceedings. The City covenants
for the benefit of the owners of the Bonds that it will
commence appropriate foreclosure proceedings within 150 days
from the date of a delinquency in the payment of an assessment,
and diligently pursue to completion such foreclosure
proceedings.
Section 22. Delinquent Assessments. Pursuant to the
provisions of Streets and Highways Code Section 8680(b), a
penalty of two percent 2%) of the total amount of any
delinquent installment of an unpaid assessment shall be added
to such delinquent installment after the close of business on
the delinquency date and an additional penalty of two percent
2%) of the amount of such delinquency shall be added thereto
at the beginning of business on the tenth day of each
succeeding month until such delinquent installment and all
penalties thereon are fully paid. This penalty shall be in
lieu of all other penalties assessed by any other provision of
law. The Treasurer shall collect the aforesaid penalty with
and as a part of each delinquent installment, and the penalties
so collected shall be deposited in the Redemption Fund.
Section 23. Incontestabilit*. After the sale and delivery
of the Bonds by the City, the Bonds shall be incontestable by
the City.
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^#:] Section 24. Contract with Bondowners. The provisions of
this Resolution and of any other resolution supplementing or
amending this Resolution shall constitute a contract between
the City and the owners of the Bonds herein referred to as the
Bondowner"), and such provisions shall be enforceable by any
Bondowner for the equal benefit and protection of all
Bondowners similarly situated by mandamus, accounting,
mandatory injunction or any other suit, action or proceeding at
law or in equity that is now or may hereafter be authorized
under the laws of the State of California in any court of
competent jurisdiction. Said contract is made under and is to
be construed in accordance with the laws of the State of
California.
No remedy conferred hereby upon any Bondowner is intended
to be exclusive of any other remedy, but each such remedy is
cumulative and in addition to every other remedy and may be
exercised without exhausting and without regard to any other
remedy conferred by law. No waiver of any default or breach of
duty or contract by any Bondowner shall affect any subsequent
default or breach of duty or contract or shall impair any right
or remedies on said subsequent default or breach. No delay or
omission of any Bondowners to exercise any right or power
accruing upon any default shall impair any such right or power
or shall be construed as a waiver of any default or
acquiescence therein. Every substantive right and every remedy
conferred upon the Bondowners may be enforced and exercised as
often as may be deemed expedient. In case any suit, action or
proceeding to enforce any right or exercise any remedy shall be
brought or taken and should said suit, action or proceeding be
abandoned, or be determined adversely to the Bondowners, then,
and in every such case, the City and the Bondowners shall be
restored to their former positions, rights and remedies as if
such suit, action or proceeding had not been brought or taken.
Section 25. Cessation of Agreements. When all of the
Bonds and all interest to accrue thereon have been fully paid
and discharged, the agreements in this Resolution contained
shall cease and terminate, and the City shall be under no
further obligation to do or perform any of the covenants,
conditions or agreements in this Resolution contained.
Section 26. Partial Invalidity. If any section,
subsection, sentence, clause or phrase of this Resolution shall
be for any reason held by a court of competent jurisdiction to
be unconstitutional, invalid or unenforceable, such holding
shall not affect the validity of the remaining portions
hereof. This City Council hereby declares that it would have
passed this Resolution and each section, subsection, sentence,
clause or phrase hereof irrespective of the fact that any one
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^#:]or more sections, subsections, sentences, clauses or phrases be
declared to be unconstitutional, invalid or unenforceable, such
holding shall not affect the validity of the remaining portions
hereof. This City Council hereby declares that it would have
passed this resolution and each section, subsection, sentence,
clause or phrase hereof irrespective of the fact that any one
or more sections, subsections, sentences, clauses or phrases be
declared to be unconstitutional, invalid or unenforceable.
Section 27. Liberal Construction. This Resolution shall
be liberally construed to the end that its purpose may be
effected. No error, irregularity or informality and no neglect
or omission herein or in any proceeding had pursuant hereto
which does not directly affect the jurisdiction of this City
Council shall void or invalidate this Resolution or such
proceeding or any part thereof, or any act or determination
made pursuant thereto.
Section 28. No City Obligation. Pursuant to Streets and
Highways Code Section 8769, this City Council hereby determines
that the City will not obligate itself to advance available
funds from the City Treasury to cure any deficiency which may
occur in the Redemption Fund.
Section 29. Amendments. This Resolution, and the rights
and obligations of the City and of the Owners of the Bonds
issued hereunder, may be modified or amended at any time by
supplemental resolution adopted by the City: a) for any
purpose at any time prior to the delivery of the Bonds;
b) without the consent of Bondowners, 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 or privileges of the City, to make modifications not
affecting any outstanding series of Bonds only with the consent
of the Treasurer, for the purpose of curing any ambiguities,
defects or inconsistent provisions in this Resolution or to
insert such provisions clarifying matters or questions arising
under this Resolution as are necessary and desirable to
accomplish the same, provided that the modifications or
amendments do not adversely affect the rights of the Owners of
any outstanding Bonds; or c) for any purpose with the consent
of the Bondowners holding not less than sixty percent 60%) in
aggregate principal amount of the outstanding Bonds, exclusive
of Bonds, if any, owned by the City, and obtained as
hereinafter set forth; provided, however, that no modification
or amendment shall, without the express consent of the Owner or
registered owner of the Bond affected, reduce the principal
amount of any Bond, reduce the interest rate payable on it,
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^#:] extend its maturity or the times for paying interest, change
the monetary medium in which principal and interest is payable,
or create a mortgage pledge or lien upon the revenues superior
to or on a parity with the pledge and lien created for the
Bonds or reduce the percentage of consent required for
amendment or modification.
Any act done pursuant to a modification or amendment
permitted by this Section 29 shall be binding upon the Owners
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 the act may be, and may be done and
performed as fully and freely as if expressly permitted by the
original terms of this Resolution, no Bondowner shall have any
right or interest to object to the action, to question its
propriety or to enjoin or restrain the City or its officers
from taking any action pursuant to such modification or
amendment
Section 30. Authorization of Officers. The officers of
the City are hereby authorized and directed, jointly and
severally, to do any and all things and to execute and deliver
any and all documents which they may deem necessary or
advisable in order to consummate the issuance, sale and
delivery of the Bonds, and otherwise to effectuate the purposes
of this Resolution, and such actions previously taken by such
officers are hereby ratified and confirmed.
Section 31. Effective Date. This Resolution shall become
effective upon adoption.
PASSED, APPROVED AND ADOPTED this 1st day of A ust, 1989.
ATTEST
lerk of City of
La Quint a
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^#:] EXHIBIT A
FACE OF BOND]
UNITED STATES OF AMERICA
STATE OF CALIFORNIA
COUNTY OF RIVERSIDE
CITY OF LA QUINTA, CALIFORNIA
LIMITED OBLIGATION INPROVEMENT BOND
ASSESSMENT DISTRICT NO. 89-2
The City is not obligated
to advance City funds to cure any deficiency
in the Redemption Fund herein described.)
No. $________
Interest Maturity Original
Rate Date Issue Date CUSIP
19 August 2, 1989
Registered Owner:
Principal Amount:
Pursuant to the Municipal Improvement Act of 1913,
Division 12 of the Streets and Highways Code and under and by
virtue of the Improvement Bond Act of 1915, Division 10 of the
Streets and Highways Code the Act"), the City of La Quinta,
County of Riverside, State of California the City"), will,
out of the Redemption Fund hereinafter described for the
payment of the Bonds issued upon the unpaid portion of
assessments made for the work and improvements in Assessment
District No. 89-2, more fully described in Resolution No. 89-56
passed by the City Council of the City on May 16, 1989 the
* of Intention"), pay to the registered owner named
above or registered assigns, on the maturity date stated above,
the principal amount set forth above, in lawful money of the
United States of America and in like manner will pay interest
from the interest payment date next preceding the date on which
this Bond is authenticated, unless this Bond is authenticated
and registered between a Record Date", as hereinafter defined,
and on or before the next interest payment date, in which event
it shall bear interest from such interest payment date, or
unless this Bond is authenticated and registered on or prior to
March 2, 1990, in which event it shall bear interest
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^#:]from the Original Issue Date, until payment of such principal
sum shall have been discharged, at the rate per annum stated
above* payable semiannually on September 2 and March 2 in each
year commencing on March 2, 1990. Both the principal hereof
and redemption premium hereon are payable at the corporate
trust office of Security Pacific National Bank, as Transfer
Agent, Registrar and Paying Agent the Paying Agent") in Los
Angeles, California, and the interest hereon is payable by
check or draft mailed by first class mail to the owner hereof
at the owner 5 address as it appears on the records of the
Paying Agent or at such address as may have been filed with the
Paying Agent for that purpose, as of the fifteenth day
immediately preceding each interest payment date the Record
Date").
REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS BOND
SET FORTH ON THE REVERSE SIDE HEREOF WHICH SHALL FOR ALL
PURPOSES HAVE THE SAME EFFECT AS THOUGH FULLY SET FORTH HEREIN.
This Bond will continue to bear interest after maturity at
the rate above stated; provided, it is presented at maturity
and payment thereof is refused upon the sole ground that there
are not sufficient moneys in said re*emption fund with which to
pay same. If it is not presented at maturity, interest thereon
will run until maturity.
This Bond shall not be entitled to any benefit under the
Act or the Resolution authorizing issuance of the Bonds adopted
by the City on August 1, 1989 the Resolution of Issuance") or
become valid or obligatory for any purpose, until the
certificate of authentication and registration hereon endorsed
shall have been dated and signed by the Paying Agent.
IN WITNESS WHEREOF, said City has caused this Bond to be
signed in facsimile by the Treasurer of said City and its Clerk
and has caused its corporate seal to be reproduced in facsimile
hereon all as of the original issue date set forth above.
CITY OF LA QUINTA, CALIFORNIA
Clerk Treasurer
SEAL]
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^#:] REVERSE OF BOND]
LIMITED OBLIGATION IMPROVEMENT BOND
CITY OF LA QUINTA, CALIFORNIA
ASSESSMENT DISTRICT NO. 89-2
The City is not obligated
to advance City funds to cure any deficiency
in the Redemption Fund herein described.)
This Bond is one of several series of Bonds of like date,
tenor and effect, but differing in amounts, maturities and
interest rates, issued by the City under the Act and the
Resolution of Issuance, for the purpose of providing means for
paying for the improvements described in the Resolution of
Intention, and is secured by the moneys in the Redemption Fund
established by the Resolution of Issuance and by the unpaid
portion of assessments made for the payment of said work, and,
including principal and interest, is payable exclusively out of
said fund.
This Bond is transferable by the registered owner hereof,
in person or by the owner 5 attorney duly authorized in
writing, at the corporate trust office of the Paying Agent in
Los Angeles, California, sub*ect to the terms and conditions
provided in the Resolution of Issuance, including the payment
of certain charges, if any, upon surrender and cancellation of
this Bond. Upon such transfer, a new registered Bond or Bonds,
of any authorized denomination or denominations, of the same
maturity, for the same aggregate principal amount will be
issued to the transferee in exchange therefor.
The Bonds shall be registered only in the name of an
individual including *oint owners), a corporation, a
partnership or a trust.
Neither the City nor the Paying Agent shall be required to
make such exchange or registration of transfer of Bonds during
the 15 days immediately preceding any interest payment date.
The City and the Paying Agent may treat the owner hereof as
the absolute owner for all purposes, and the City shall not be
affected by any notice to the contrary.
This Bond or any portion of it in the amount of five
thousand $5,000), or any integral multiple thereof, may be
redeemed and paid in advance of maturity upon the 2nd day of
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^#:]March or September in any year by giving at least 30 days
notice by registered or certified mail or by personal service
to the registered owner hereof at the owner's address as it
appears on the registration books of the Treasurer. The
redemption price thereof shall be equal to the principal amount
thereof and accrued interest together with a premium equal to
three percent 3%) of the principal.
LEGAL OPINION
I hereby certify that the following is a correct copy of
the signed legal opinion of Stradling, Yocca, Carlson & Rauth,
a Professional Corporation, addressed to the original purchaser
of the Bonds and dated as of the date of delivery of and
payment for this Bond.
City Clerk
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^#:] FORM OF ASSIGNMENT]
FOR VALUE RECEIVED the undersigned hereby sell(s),
assign(s) and transfer(s) unto
PLEASE INSERT SOCIAL SECURITY OR
OTHER IDENTIFYING NUMBER OF ASSIGNEE]
Please print or typewrite name and address including
postal zip code of assignee]
the within Bond of the City, County of Riverside, California,
and does hereby irrevocably constitute and appoint
Attorney to transfer
said Bond on the books of Security Pacific National Bank, as
Paying Agent, Transfer Agent and Registrar, with full power of
substitution in the premises.
Dated: 19
NOTICE: The signa*ure to this
assignment must correspond with
the name as written upon the
face of the within Bond in every
particular without alteration or
enlargement, or any change
whatsoever.
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^#:] FORM OF CERTIFICATE OF]
AUTHENTICATION AND REGISTRATION
This is one of the Bonds described in the within mentioned
Resolution of Issuance.
Dated:
SECURITY PACIFIC NATIONAL BANK,
Paying Agent, Transfer Agent and
Registrar
By:
Authorized Officer
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^#:]STATE OF CALIFORNIA
ss.
COUNTY OF RIVERSIDE
I, SAUNDRA JUHOLA, City Clerk of the City of La Ouinta, do
hereby certify that the foregoing resolution was duly adopted
by the City Council of said City at a regular meeting of said
City held on the 1st day of August, 1989, and that it was so
adopted by the following vote:
AYES: Council Members Bosworth, Rushworth, Sniff, Mayor Pena
NOES: None
ABSENT: Council *einbe;n;er**
4ity Clerk of the *y of La Quinta
SEAL)
STATE OF CALIFORNIA
ss.
COUNTY OF RIVERSIDE
I, SAUNDRA JUHOLA, City Clerk of the City of La Quinta, do
hereby certify that the above and foregoing is a full, true and
correct copy of RESOLUTION NO *3of said City, and that the
same has not been amended or repealed
DATED: August 1, 1989
*-i**
*city Cleik of theL*ty of La Quinta
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