CC Resolution 1993-070^#Ec RESOLUTION NO. 93-70
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF LA QUINTA PROVIDING FOR THE
ISSUANCE AND SALE OF BONDS FOR
ASSESSMENT DISTRICT NO. 92-1 THEREOF IN
THE AMOUNT OF $1,880,891.50
WHEREAS, the City Council of the City of La Quinta the
City") has taken proceedings pursuant to the Municipal
Improvement Act of 1913 for the formation of Assessment
District No. 92-1 and the issuance of bonds in an amount not to
exceed $2,260,937.72; and
WHEREAS, the City Council has adopted *esolution No. 93-69
determining that the amount of unpaid assessments is
$1,880,891.50; and
WHEREAS, the City Council desires to proceed to issue bonds
in an aggregate principal amount of $1,880,891.50 designated as
the Limited Obligation Improvement Bonds City of La Quinta,
California, Assessment District No. 92-1; and
WHEREAS, the City Council desires to receive sealed bids
for bonds to be issued pursuant to the Improvement Bond Act of
1915 in the amount of $1,880,891.50 to represent assessments
not paid in cash;
NOW, THEREFORE, the City Council of the City of La Quinta
DOES RESOLVE, DETERMINE AND ORDER as follows:
SECTION 1. The issuance of the Bonds shall be in a
principal amount of $1,880,891.50. All provisions of the Bonds
shall be governed by the terms and conditions of a supplement
to this Resolution the Supplement to Resolution") to be
prepared by Bond Counsel to the City and executed by the Mayor
of the City and attested to by the City Clerk, which Supplement
to Resolution shall be in the form attached hereto as Exhibit
A, with such additions thereto and changes therein as the
officers executing the same deem necessary to enhance the
security for or obtain a rating on the Bonds, to cure any
ambiguity or defect therein if such addition or change does not
materially alter the substance or content thereof, to insert
the interest rate(s), principal amount per maturity and such
other related terms and provisions as limited by Section 8
hereof, or the Official Statement delivered to the purchasers
of the Bonds in accordance with Section 7 hereof. Approval of
such changes shall be conclusively evidenced by the execution
and delivery of the Supplement to Resolution by such officers.
Capitalized terms used in this Resolution which are not defined
herein have the meanings ascribed to them in the Supplement to
Resolution attached hereto as Exhibit A.
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^#Ec SECTION 2. The Bonds shall be executed on behalf of the
City by the manual or facsimile signatures of the Treasurer and
Clerk of the City, and the seal of the City, or a facsimile
thereof, shall be impressed or imprinted thereon.
SECTION 3. The covenants set forth in the Supplement to
Resolution to be executed in accordance with Section 1 above
are hereby approved, shall be deemed to be covenants of the
City Council and shall be complied with by the City and its
officers. The Supplement to Resolution shall constitute a
contract between the City and the Owners of the Bonds.
SECTION 4. Bank of America National Trust and Savings
Association is hereby appointed to act as Paying Agent,
Registrar and Transfer Agent for the Bonds.
SECTION 5. The City does hereby call for sealed bids for
up to $1,880,891.50 of bonds of Assessment District No. 92-1 to
be received at the office of Fieldman, Rolapp & Associates
Financial Advisors), 2100 S.E. Main Street, Suite 210, Irvine,
California 92714, up to the hour of 10:00 a.m., August 18,
1993. Said bids will be opened at said time and place and
presented to the City on August 18, 1993.
SECTION 6. The Financial Advisor shall cause a short form
notice inviting such bids to be given by publication once in
the BOND BUYER at least fifteen 15) days prior to the date of
sale and shall cause the Notice Inviting Bids in substantially
the form attached hereto as Exhibit B to be mailed to such
persons and investment bankers known by the Financial Advisor
to have an interest in purchasing such Bonds.
SECTION 7. The form of the Preliminary Official Statement
presented at this meeting is hereby approved in the form
presented and the Financial Advisors are hereby authorized to
distribute the Preliminary Official Statement to prospective
purchasers in the form hereby approved, together with such
additions thereto and changes therein as are determined
necessary by the City Manager, or his designee, to make such
Preliminary Official Statement final as of its date for
purposes of Rule 15c2-12 of the Securities and Exchange
Commission. The Mayor of the City or the City Manager, or his
written designee, is hereby authorized to execute a final
Official Statement in the form of the Preliminary Official
Statement, together with such changes as are determined
necessary by the City Manager, or his designee,, to make such
Official Statement complete and accurate as of its date. The
initial purchasers of the Bonds are authorized to distribute
the final Official Statement for the Bonds to purchasers
thereof upon its execution by an officer of the City as
described above.
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^#Ec Resolution No. 93-70
SECTION 6. The City Council delegates to the City Manager
or Assistant City Manager the right to accept the bid of the
lowest responsible bidder and award the sale of Bonds to said
lowest bidder provided that the discount bid shall not exceed
2% and the net interest cost shall not exceed 12%. The amount
of Bonds to be delivered will be based on the amount of
assessments on the unpaid list as determined at the expiration
of the cash collection period and adjustments at that time will
be made in the maturity schedule, and the final delivery will
be based upon the adjusted maturity schedule.
SECTION 9. The City Manager, or his written designee, is
authorized to provide for all services necessary to effect the
issuance of the Bonds. Such services shall include, but not be
limited to, printing the Bonds, the Preliminary Official
Statement and the final Official Statement, obtaining legal
services, paying agent services and any other services deemed
appropriate. The City Manager or his written designee, is
authorized to pay for the cost of such services, together with
other costs of issuance, with Bond proceeds deposited to the
Improvement Fund established pursuant to the Supplement to
Resolution.
SECTION 10. The Mayor and Clerk of the City and the other
officers and staff of the City responsible for the fiscal
affairs of the City are hereby authorized and directed to take
any actions and execute and deliver any and all documents as
aer necessary to accomplish the issuance, sale and delivery of
the bonds in accordance with the provisions of this Resolution
and the fulfillment of the purposes of the Bonds as described
in the Supplement to Resolution. In the event that the Mayor
of the City is unavailable to sign any document authorized for
execution herein, any other member of the City Council or the
City Manager, or his written designee, may sign such document.
Any document authorized herein to be signed by the Clerk of the
City may be signed by a duly appointed deputy clerk.
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^#Ec ADOPTED, SIGNED AND APPROVED this 3rd day of August, 1993.
Pr
SEAL)
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^#Ec Resolution No. 93-70
STATE OF CALIFORNIA
55.
COUNTY OF RIVERSIDE
I, SAUNDRA JUHOLA, City Clerk of the City Council of City
of La Quinta, do hereby certify that the foregoing resolution
was duly adopted by the City Council of said City at a regular
meeting held on the 3rd of August, 1993, and that it was so
adopted by the following vote:
AYES: Council Members McCartney, Perkins, Mayor
Pro Tern Sniff
NOES: None
ABSENT: Council Member Bangerter, Mayor Pena
ABSTAIN: None
ity Clerk of th ity Council
of the City of La Quinta
SEAL)
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^#Ec Resolution No. 93-70
STATE OF CALIFORNIA
55.
COUNTY OF RIVERSIDE
I, SAUNDRA JUHOLA, City Clerk of the City Council of the
City of La Quinta, do hereby certify that the above and
foregoing is a full, true and correct copy of RESOLUTION NO.
93-70 of said City Council, and that the same has not been
amended or repealed.
DATED: August 3, 1993
ity Clerk of he City Council
of the City of La Quinta
SEAL)
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^#Ec CITY COUNCIL OF THE CITY OF LA QUINTA
SUPPLEMENT TO RESOLUTION NO.93-70
OF THE CITY COUNCIL OF THE CITY OF LA QUINTA,
CALIFORNIA, PROVTDING FOR THE ISSUANCE AND SALE OF
BONDS FOR ASSESSMENT DISTRICT NO.92-i IN THE AMOUNT
OF $1,880,891.50
Adopted on August 3, 1993
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^#Ec SUPPLEMENT TO RESOLUTION NO.93-70
OF THE CITY COUNCIL OF THE CITY OF LA QUINTA,
CALIFORNIA, PROVIDING FOR THE ISSUANCE AND SALE OF
BONDS FOR ASSESSMENT DISTRICT NO.92-i IN THE AMOUNT
OF $1,880,891.50
WHEREAS, on May 26, 1992 the City Council of the City of La Quinta the City")
adopted Resolution No.92-56 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.92-i the
Assessment District"); and
WHEREAS, by its Resolution No.92-57 adopted on May 26, 1992, this City Council has
authorized the formation of the Assessment District, has approved a final Engineer's 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 August 3, 1993, the City Council adopted Resolution No.93-69
determining the assessments remaining unpaid following the 30*ay 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 1,880,891.50, to represent and be secured by the
unpaid assessments in the Assessment District the Bonds");
WHEREAS, on August 18, 1993, M.L. Stern & Co., Inc. the Purchaser") submitted
the bid with the lowest true interest cost on the Bonds and by this Resolution authorized the City
Manager to award the Bonds to the Purchaser; and
NOW, THEREFORE, the City Council of the City of La Quinta, DOES HEREBY
FIND, DETERMINE, RESOLVE AND ORDER as follows:
Section 1. UnDaid Assessments. The assessments now remaining unpaid as determined
by Resolution No.93-69 are in the aggregate amount of $1,880,891.50. 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 Superintendent of Streets.
Section 2. Issuance of Bonds: Maturitv of Principal. Serial bonds and term bonds, if
applicable, 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 $1,880,891.50.
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^#Ec I I II
Resolution No. 93-70
Each of said Bonds shall be designated United States of America, State of California,
County of Riverside, Limited Obligation Improvement Bond, City of La Quinta, California,
Assessment District No.92-i", and shall be a serial bond of the denomination of $5,000 each,
except one bond of the 1994 maturity shall be of the denomination of $5,891 50), or any integral
multiple of $5,000 over and above such amount, herein referred to as the Bonds"). 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 RATh
1994 $ 85,891.50 5.00%
1995 90,000.00 5.00%
1996 95,000.00 5.00%
1997 100,000.00 5.00%
1998 105,000.00 5.00%
1999 110,000.00 5.00%
2000 115,000.00 5.00%
2001 120,000.00 5.15%
2002 130,000.00 5.25%
2003 135,000.00 5.30%
2004 145,000.00 5.40%
2005 150,000.00 5.40%
2006 160,000.00 5.40%
2007 165,000.00 5.40%
2008 175,000.00 5.40%
The Bonds shall be in the form of fully registered bonds without coupons. The Bonds
shall be dated as of September 1, 1993. 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 semiannually on March 2 and September 2 of each year
the Interest Payment Date"), commencing March 2, 1994.
Each Bond shall bear interest from the interest payment date next preceding the date of
registration thereof unless: i) it is registered after the fifteenth day of the month preceding an
Interest Payment 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 on or prior to February iS, 1994,
in which event it shall bear interest from the Original Issue 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 mailed 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 as of the close of business on each Interest
Payment 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
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Resolution No. 93-70
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 appears 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.
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 duty authenticated and delivered
under this resolution. The Paying Agent's 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 Pavment. The principal on the Bonds shall be payable
upon surrender 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 as provided in Section 3 of this Resolution.
Section 6. RedemDtion Prior to Maturitv. 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 Fund, 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 plus with a premium expressed as a percentage) of the
principal amount of the Bonds to be redeemed) as shown in the following table:
RedemDtion Dates RedemDtion Premium
On or before September 2, 1998 3%
On March 2, 1999 or September 2, 1999 2%
On March 2, 2000 or September 2, 2000 1%
March 2, 2001 and thereafter 0%
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
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Resolution No. 93-70
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 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 Re*istration. 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 City shall make all necessary provisions to permit the exchange of
Bonds at said office of the Paying Agent.
Section 8. Transfer and Exchan*e 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 such
exchange or registration of transfer of Bonds during the 15 days immediately preceding the
selection of Bonds to be redeemed, or of any Bonds chosen for redemption. 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.
1,) 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. PreDaration of Definitive Bonds: Temoorary 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 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. Redemotion Fund.
F
a) The Treasurer shall establish and maintain a redemption fund designated the
Assessment District No.92-i, 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
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Resolution No. 93-70
Redemption Fund to pay the principal of the Bonds and the interest and redemption premium, if
any, due thereon.
b) All Rebatable Arbitrage, as defined in Section 18 hereof, reali::ed from the
investment of money in the Redemption Fund shall be transferred to the Rebate Account 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 September 1, 1993 to the Delivery Date.
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.92-i Reserve Fund," the Reserve
Fund"). There shall be initially deposited into the Reserve Fund the Reserve Requirement, an
amount equal to the Reserve Requirement. 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 parcels 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.
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c) All Rebatable Arbitrage 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 armiversary of the Delivery Date to the Rebate Account created in Section *8 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 the Reserve
Requirement. Thereafter, investment income on amounts held in the Reserve Fund shall be
transferred immediately upon receipt to the Redemption Fund.
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 the Reserve Requirement.
Section 14. ImDrovement Fund.
a) There is hereby created a special fund to be held by the Treasurer and designated
the Assessment District No.92-i 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.
q)) All Rebatable Arbitrage realized from the investment of money in the
Improvement Fund shall be transferred by the Treasurer for deposit into the Rebate Account
created in Section 18 hereof.
Section 15. Pavin* A*ent. This City Council hereby appoints Bank of America National
Trust and Savings Association, 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. UnDaid Assessments as Trust Fund. The unpaid assessments set forth in
Resolution No.93-69 approved by this City Council are determined by this City Council to be
correct, 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.
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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 Fart
10.5 of Division 10 of the Streets and Highways Code of the State of California.
Section 17. Federal Tax Covenants. Notwithstanding any other provision of this
Resolution, absent an opinion of Bond Counsel that the exclusion from gross income of the
interest on the Bonds will not be adversely affected for federal income tax purposes, the City
covenants to comply with all applicable requirements of the Code necessary to preserve such
exclusion ftom gross income and specifically covenants, without limiting the generality of the
foregoing, as follows.
1) Private Activitv. The City will take no action or omit to take any action
or make any use of the proceeds of the Bonds or of any other monies or property which
would cause the Bonds to be private activity bonds" within the meaning of Section 141
of the Code;
2) Arbitra*e. The City will make no use of the proceeds of the Bonds or of
any other amounts or property, regardless of the source, or take any action or omit to
take any action which will cause the Bonds to be arbitrage bonds" within the meaning of
Section 148 of the Code;
3) Federal Guarantv. The City will make no use of the proceeds of the
Bonds or take or omit to take any action that would cause the Bonds to be federally
guaranteed" within the meaning of Section 149(1,) of the Code;
4) Information Reportin*. The City will take or cause to be taken all
necessary action to comply with the informational reporting requirement of Section 149(e)
of the Code;
5) Miscellaneous. The City will take no action or refrain from taking any
action inconsistent with its expectations stated in the Tax Certificate and will comply with
the covenants and requirements stated therein and incorporated by reference herein.
Section 18. Rebate Fund.
a) Establishment of Rebate Fund. With respect to the execution and delivery of the
Bonds, the Treasurer shall establish a special fund with respect to the Bonds designated as the
Rebate Fund" the Rebate Fund"), and within the particular Rebate Fund shall establish two
separate accounts designated the Rebate Account the Rebate Account") and the Alternative
Penalty Account the Alternative Penalty Account"). Absent an opinion of Bond Counsel that
the exclusion from gross income for federal income tax purposes of interest on the Bonds will not
be adversely affected, the City shall cause to be deposited in the Rebate Account such amounts as
are required to be deposited therein pursuant to this Section and the Tax Certificate. All money
at any time deposited in the Rebate Fund shall be held by the Treasurer in trust, for payment to
the United States Treasury. All amounts on deposit in the Rebate Fund shall be governed by this
Section 18 and the Tax Certificate, unless and to the extent that the City obtains an opinion of
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Bond Counsel that the exclusion from gross income of the interest component on the Bonds will
not be adversely affected for federal income tax purposes if such requirements are not satisfied.
1) Rebate Account. The following requirements shall be satisfied with
respect to the Rebate Account:
I) Annual Com*utanon. Within 55 days of the end of each Bond Year,
the City shall calculate or cause to be calculated the amount of rebatable arbitrage, in
accordance with Section 148(f)(2) of the Code and Section 1.148-3 of the Rebate
Regulations taking into account any applicable exceptions with respect to the computation
of the rebatable arbitrage, described, if applicable, in the Tax Certificate * the
temporary investments exceptions of Section 148(f)(4)(B) and C) of the Code), and
taking into account whether the election pursuant to Section 148(f)(4)(C)(vii) of the Code
the 11/2% Penalty") has been made), for this purpose treating the last day of the
applicable Bond Year as a computation date, within the meaning of Section 1.148-1(b) of
the Rebate Regulations the Rebatable Arbitrage"). The City shall obtain expert advice
as to the amount of the Rebatable Arbitrage to comply with this Section.
ii) Annual Transfer. Within 55 days of the end of each applicable Bond
Year, an amount shall at the written direction of the City be deposited to the Rebate
Account by the Treasurer from any legally available flinds if and to the extent required,
so that the balance in the Rebate Account shall equal the amount of Rebatabie Arbitrage
so calculated in accordance with i) of this Subsection a)(1). In the event that
immediately following the transfer required by the previous sentence, the amount then on
deposit to the credit of the Rebate Account exceeds the amount required to be on deposit
therein, the Treasurer shall withdraw the excess from the Rebate Account and then credit
the excess to the Redemption Fund.
iii) Payment to the Treasurv. The Treasurer shall at the written direction
of the City pay to the United States Treasury, out of amounts in the Rebate Account.
x) Not later than 60 days after the end of A) the fifth Bond
Year, and B) each applicable fifth Bond Year thereafter, an amount equal to at least 90%
of the Rebatable Arbitrage calculated as of the end of such Bond Year; and
Y) Not later than 60 days after the payment of all Bonds, an
amount equal to 100% of the Rebatable Arbitrage calculated as of the end of such
applicable Bond Year, and any income attributable to the Rebatable Arbitrage, computed
in accordance with Section 148(f) of the Code.
In the event that, prior to the time of any payment required to be made
from the Rebate Account, the amount in the Rebate Account is not sufficient to make
such payment when such payment is due, the City shall calculate or cause to be calculated
the amount of such deficiency and deposit an amount received from any legally available
source equal to such deficiency prior to the time such payment is due. Each payment
required to be made pursuant to this Subsection a)(1) shall be made to the Internal
Revenue Service Center, Philadelphia, Pennsylvania 19255 on or before the date on
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which such payment is due, shall be accompanied by Internal Revenue Service Form
8038-T, or shall be made in such other manner as provided under the Code.
2) Alternative Penalty Account.
i) Six-Month Computation. If the 11/2% Penalty has been elected,
within 85 days of each particular Six-Month Period, the City shall determine or cause to
be determined whether the 11/2% Penalty is payable and the amount of such penalty) as
of the close of the applicable Six-Month Period. The City shall obtain expert advice in
making such determinations.
ii) Six-Month Transfer. Within 85 days of the close of each Six-Month
Period, the City shall direct the Treasurer to deposit in the Alternative Penalty Account
from any legally available source of funds if and to the extent required, so that the
balance in the Alternative Penalty Account equals the amount of 1 112% Penalty due and
payable to the United States Treasury determined as provided in Subsection a)(2)(i)
above. In the event that immediately following the transfer provided in the previous
sentence, the amount then on deposit to the credit of the Alternative Penalty Account
exceeds the amount required to be on deposit therein to make the payments required by
Subsection iii) below, the Treasurer may, at the written direction of the City, withdraw
the excess from the Alternative Penalty Account and credit the excess to the Redemption
Fund.
iii) Pavment to the Treasurv. The City shall direct the Treasurer to pay
to the United States Treasury, out of amounts in an Alternative Penalty Account, not later
than 90 days after the close of each Six-Month Period the 11/2% Penalty, if applicable
and payable, computed in accordance with Section 148(f)(4) of the Code. In the event
that, prior to the time of any payment required to be made from the Alternative Penalty
Account, the amount in such Account is not sufficient to make such payment when such
payment is due, the City shall calculate the amount of such deficiency and deposit an
amount received from any legally available source of funds equal to such deficiency into
the Alternative Penalty Account prior to the time such payment is due. Bach payment
required to be made pursuant to this Subsection a)(2) shall be made to the Internal
Revenue Service, Philadelphia, Pennsylvania 19255 on or before the date on which such
payment is due, and shall be accompanied by Internal Revenue Service Form 8038-T, or
shall be made in such other manner as provided under the Code.
1)) DisDosition of Unext,ended Funds. Any funds remaining in the Rebate Fund
after redemption and payment or prepayment of the Bonds, the payments described in Subsection
a)(I)(iii) or a)(2)(iii) whichever is applicable), may be withdrawn by the City and utilized in
any manner by the City.
c) Survival of Defeasance. Notwithstanding anything in this Section to the
contrary, the obligation to comply with the requirements of this Section shall survive the
defeasance of the Bonds.
Section 19. Definitions. For the purpose of this Resolution, the following terms shall
have the following meanings:
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Assessment District. The term Assessment District" means that certain district of
land designated as Assessment District No.92-i", 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*xempt 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 period beginning and ending on the
dates selected by the City in the Tax Certificate with respect to the Bonds.
Code. The term Code" means the Internal Revenue Code of 1986, as amended,
and the United States Treasury Regulations proposed or in effect with respect thereto.
Deliverv Date. The term Delivery Date" means the date the Bonds are delivered
to the initial purchaser.
Fiscal Year. The term Fiscal Year" means July 1 to June 30 of each year.
Improvements. The term Improvements" means those public improvements set
forth in the Final Engineer's Report relating to the Assessment District.
Maximum Annual Debt Service. The term Maximum Annual Debt Service"
means the sum of 1) the interest falling due on the outstanding Bonds, assuming that all the
outstanding Bonds are retired as scheduled, and 2) the principal amount of the outstanding Bonds
falling due by their terms as computed for the Fiscal Year in which such sum is the largest.
The term Annual Debt Service" means the sum of said items 1) and 2) as
computed for each Fiscal Year.
Pavin* A*ent A*reement. The term Paying Agent Agreement" means that
certain agreement between the City and Bank of America National Trust and Savings Association,
as Paying Agent.
Permitted Investments. The term Permitted Investments" shall have the meaning
set forth in Section 20 of this Resolution.
Rebate Re*uIations. The term Rebate Regulations" shall mean the Treasury
Regulations issued under Sections 148(f) of the Code.
Reserve Requirement. The term Reserve Requirement" means the least of equal
i) ten percent 10%) of the original proceeds of the Bonds ii) the Maximum Annual Debt
Service on the Bonds or iii) 125% of the average Annual Debt Service.
F Resolution of Intention. The term Resolution of Intention" means Resolution No.
92-56 adopted by the La Quinta City Council of the City of La Quinta on May 26.1992.
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Six-Month Period. The term *Six-Month Period" shall mean the period beginning
on the Delivery Date and ending six months thereafter and each six-month period thereafter until
the latest maturity date of the Bonds and any obligations that refund the Bonds).
Tax Certificate. The term Tax Certificate shall mean the certificate by that name
to be executed by the City on a Delivery Date to establish certain facts and expectations and
which contains certain covenants relevant to compliance with the Code.
Treasurer. The term Treasurer" means the person at any time acting as the City
Treasurer, and his successors from time to time.
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 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 Oovernment Obligations investments set forth in Section 53635*) 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 Rebate 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 Rebate 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 the Reserve Requirement and, if the Reserve Fund is then in an amount equal
to the Reserve Requirement but not more than the Reserve Requirement), 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 this Resolution 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 Paying 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.
I. Covenant Punctual Payment. 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 Redemption 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 Proceedin*s. The City covenants for the benefit of the
owners of the Bonds that it will on or prior to July 1 of each year review the assessment records
for Assessment District No.92-i and will commence appropriate foreclosure proceedings within
150 days from the date of said review, and diligently pursue to completion such foreclosure
F proceedings.
Section 22. Incontestabilitv. After the sale and delivery of the Bonds by the City, the
Bonds shall be incontestable by the City.
Section 23. Contract with Bondowners. The provisions of this Resojution 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
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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 24. Cessation of A*reements. When all of the Bonds and all interest to accrue
thereon have been flilly 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 25. 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 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 26. 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 27. No Citv Obli*ation. 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 28. 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, 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
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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 permiued by this
Section 2* 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 29. 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 effecwate the purposes of this Resolution, and
such actions previously taken by such officers are hereby ratified and confirmed.
Section 30. Effective Date. This Resolution shall become effective upon adoption.
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PASSED, APPROVED AND ADOPThD this 3rd day of August, 1993.
Mayor 0 e City 0' Quinta
A T:
ity Clerk of the City of La Quinta
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EXHIBIT A
FACE OF BOND]
UNITED STATES OF AMERICA
STATE OF CALIFORNIA
COUNTY OF RIVERSIDE
LIMITED OBLIGATION IMPROVEMENT BOND
CITY OF LA QUINTA, CALIFORNIA
ASSESSMENT DISTRICT NO.92-i
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 September 1, 1993
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.92-i, more fully described in proceedings taken pursuant to
Resolution of Intention No.92-56 adopted by the City Council of the City on May 26, 1993 the
Resolution of Intention"), pay to the registered owner stated above or its assigns, on the
maturity date stated above, the principal amount stated above, in lawful money of the United
States of America and in like manner will pay interest from the Interest Payment Date next
preceding the date on which this Bond is authenticated, unless this Bond is authenticated and
registered after the fifteenth day of the month immediately preceding an Interest Payment Date
and on or before such 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 February
F
15, 1994, in which event it shall bear interest 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 March 2 and September 2 in each year commencing March 2, 1994. Both the
principal hereof and redemption premium hereon are payable upon surrender of this bond at the
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corporate trust office of Bank of America National Trust and Savings Association, as Transfer
Agent, Registrar and Paying Agent the *Paying Agent") in Los Angeles, California, and the
interest hereon is payable by check mailed by first class mail to the owner hereof at the owner's
address as it appears on the records of the Paying Agent as of the fifteenth day of the month
immediately preceding each Interest Payment Date.
REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS BOND SET
FORTH ON THE REVERSE SDE 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 redemption fund with which to pay same. If it is not presented at
maturity, interest thereon will accrue only until maturity.
This Bond shall not be entitled to any benefit under the Act or the Resolution of the
Issuance of the Bonds 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 of La Quinta 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 1st day of September, 1993.
CITY OF LA QUINTA, CALIFORNIA
*rk"
SEAL]
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REVERSE OF BOND]
LIMITED OBLIGATION IMPROVEMENT BOND
CITY OF LA QUINTA, CALIFORNIA
ASSESSMENT DISTRICT NO.92-i
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
proceedings, and is secured by the moneys in said Redemption Fund and by the unpaid portion of
assessments made for the payment of said improvements, and, including principal and interest, is
payable exclusively out of said fund.
This Bond is transferable by the registered owner hereof, in person or by the owner's
attorney duly authorized in writing, at the corporate trust office of the Paying Agent, subject to
the terms and conditions provided in the Resolution of Issuance, including the payment of certain
charges, if any, upon surrender and cancellation of this Bond. Upon such transfer, a new
registered Bond or Bonds, of any authorized denomination or denominations, of the same
maturity, for the same aggregate principal amount will be issued to the transferee in exchange
therefor.
The Bonds shall be registered only in the name of an individual including joint owners),
a corporation, a partnership or a trust.
Neither the City nor the Paying Agent shall be required to make such exchange or
registration of transfer of Bonds during the 15 days immediately preceding the selection of Bonds
to be redeemed, or of any Bonds chosen for redemption.
The City and the Paying Agent may treat the owner hereof as the absolute owner for all
purposes, and the City and the Paying Agent 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 March
or September in any year by giving at least 30 days' notice but not more than 60 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 Paying Agent by paying principal and
accrued interest together with a premium expressed as a percentage) of the principal amount of
the Bonds to be redeemed) as shown in the following table:
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^#Ec Resolution No. 93-70
Redem*tion Dates Redemption Premium
On or before September 2, 1998 3%
On March 2, 1999 or September 2, 1999 2%
On March 2, 2000 or September 2, 2000 1 %
On March 2, 2001 and thereafter 0%
LEGAL OPINION
I hereby certify that the following is a correct copy of the signed legal opinion of
Stradling, Yocca, Carison & 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.
Ai*Clerk*
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^#Ec I I
Resolution No. 93-70
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
as Paying Agent, Transfer Agent and Registrar, with full power of substitution in the
premises.
Dated: 19
Signature Guaranteed:
NOTICE: The signature to this assignment
rnust correspond with the name as written
upon the face of the within Bond in every
particular without alteration or enlargement,
or any change whatsoever.
F
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^#Ec Resolution No. 93-70
FORM OF CERTIFICATE OF
AUTHENTICATION AND REGISTRATION]
This is one of the Bonds described in the within mentioned Resolution of Issuance.
Dated:
BANK OF AMERICA NATIONAL TRUST
AND SAVINGS ASSOCIATION, Paying
Agent, Transfer Agent and Registrar
By:
Authorized Signatory
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^#Ec Resolution No. 93-70
TABLE OF CONTENTS
Section 1. Unpaid Assessments...................................................
Section 2. Issuance of Bonds: Maturity of Principal.............................
Section 3. Interest.................................................................2
Section 4. Execution and Authentication.............................................3
Section 5. Manner and Place of Pavment..............................................3
Section 6. Redemption Prior to Maturity.............................................3
Section 7. Transfer and Re*istration................................................4
Section 8. Transfer and ExchanQe of Bonds...........................................4
Section 9. Bonds Mutilated. Destroyed. Stolen or Lost...............................5
Section 10. Preparauon of Definitive Bonds: Temporarv Bonds..........................5
Section 11. Redemption Fund..........................................................5
Section 12. Bond Proceeds............................................................6
Section 13. Reserve Fund.............................................................6
Section 14. Improvement Fund.........................................................7
Section 15. Pavin* A*ent.............................................................7
Section 16. Unpaid Assessments as Trust Fund.........................................7
Section 17. Federal Tax Covenants....................................................8
Section 18. Rebate Fund..............................................................8
Section 19. Definitions............................................................11
Section 20. Investment of Funds....................................................12
Section 21. Covenants..............................................................12
Section 22. Incontestability.......................................................13
Section 23. Contract with Bondowners...............................................13
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^#Ec I I.
Resolution No. 93-70
Section 24. Cessation of A*eements...............................................13
Section 25. Partial Invalidity...................................................14
Section 26. Liberal Construction.................................................14
Section 27. No City Obli*tion....................................................[4
Section 28. Amendments...........................................................14
Section 29. Authorization of Officers............................................15
Section 30. Effective Date.......................................................15
Appendix A Form of Bond
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^#Ec I,,,', I
Resolution No. 93-70
STATE OF CALIFORNIA
55.
COUNTY OF RIVERSIDE
I, SAUNDRA JUHOLA, City Clerk of the City of La Quinta, 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 3rd day of August, 1993, and that it was so adopted by the following vote:
AYES: Council Members McCartney, Perkins, Mayor Pro Tern Sniff
NOES: None
ABSENT: Council Member Ban*er;Yor;;a**
*ty Clerk of the City of La Quinta
SEAL)
F
STATE OF CALIFORNIA
55.
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.93-70 of said City,
and that the same has not been amended or repealed.
DATED: August 3, 1993
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