1996 RES R-129-96 - Laserfiche WebLink

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Bonds, Series 1996 and to use a portion of the sale proceeds to be derived therefrom to purchase all of the Refunding Bonds pursuant to the terms of an Acquisition Agreement (the "Acquisition Agreement") to be entered into by and between the City and the Authority; WHEREAS, upon the purchase with the sale proceeds received from the Authority of noncallable, direct obligations of, or obligations which are unconditionally guaranteed by, the United States of America (the "Escrowed Securities") in an amount sufficient to provide for full payment of the Prior Bonds, which Escrowed Securities shall be held in trust pursuant to an Escrow Agreement (the "Escrow Agreement") to be entered into by and between the City, acting on behalf of the CFD, and First Trust of California, N.A., as escrow agent, then all liability of the CFD and the City with respect to payment of such Prior Bonds from amounts pledged under the Prior Bond Indenture shall cease, terminate and be completely discharged, and the owners of the Prior Bonds shall thereafter be entitled only to payment from the Escrowed Securities; WHEREAS, copies of the proposed 1996 Indenture, the Acquisition Agreement and the Escrow Agreement have been presented to and considered by this legislative body for approval at this time, and it is desirable that such documents now be approved and the transaction contemplated thereby be consummated as soon as practicable; BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COLTON, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 88-1, AS FOLLOWS: RECITALS SECTION 1. That the above recitals are true and correct. SECTION 2. That this legislative body hereby makes the following determinations pertaining to the proposed issuance of the Refunding Bonds: A. That it would be prudent in the management of the fiscal affairs of the CFD to RESCFD.881 issue the Refunding Bonds; 2