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7C_ t,,,, Bank <br />Up] Dep—t <br />"S swth Figwm S� <br />L� Angeles, Uffornin 901r7l - 1601 <br />Pm Off= Box MOO <br />March 3, 1993 L� AnBeles. Califoma 9M I - I 10D <br />213.236.5" <br />$N C; <br />Richard Acevedo 1117 <br />,4� $s �17 <br />Finance Director <br />city of Colton <br />IV <br />community Facilities District (.,) <br />650 North La Cadena Drive CNJ <br />Colton, CA 92324 <br />Qk <br />Re: Colton City Community Facilities <br />District No. 89-2, Special Tax Bonds, <br />Series A <br />Our File No. A3567 <br />Dear Mr. Acevedo: <br />Union Bank serves as Fiscal Agent of the above -referenced bond <br />issue. Upon review of Resolution No. 89-2-1 as amended on <br />February 6, 1990, we noticed a defect on Page 8 in item (ix) - <br />Taxable Government Money Market Portfolios - of the Investment <br />Securities. Enclosed for your convenience is a copy of the <br />Resolution. All language in paragraph (ix) following the first <br />semicolon should have been deleted since it is not feasible for <br />the Fiscal Agent to obtain a first perfected security interest in <br />the collateral to such investments. This language was probably <br />intended for item (vii) - Guaranteed Investment Contracts - or <br />some other investment. In my telephone conversation this morning <br />with the bond counsel for this issue, Stan Wolcott of RUtan & <br />Tucker, he agreed that such language has been deleted in similar <br />deals without objection. <br />Although the comment was passed along back in 1989, since the <br />Fiscal Agent was not a signatory to the Resolution, it did not <br />notice that this language was not deleted in the Resolution's <br />final version. <br />Article Seven of the Resolution enables modification or amendment <br />at any time by supplemental resolution adopted by the Legislative <br />Body (the Colton City Council) without owner consent for the <br />purpose of curing any defects in the Resolution. We request that <br />such defect be cured by amendment of the Resolution. <br />Under Section 3.03 (Investment of Funds) of the Resolution, <br />investments shall be made as directed in writing by an Authorized <br />Representative of the City, however, in the absence of such <br />written direction, the Fiscal Agent is to invest solely in <br />Investment Securities described in paragraph (ix) - Taxable <br />Richard Acevedo <br />