1998 AGN NOV 10 I02 - Laserfiche WebLink

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LAW OFFICES OF BEST BEST & KRIEGER LLP Authority for the purchase of the Project. The City pledges net revenues of the water enterprise (gross revenues of the water enterprise less maintenance and operation costs) to repayment of the installment payments. The Authority, under the Installment Purchase Agreement and Indenture assigns its rights to the Installment Payments to the Bondholders. Thus, repayment of the Bonds is secured by net revenues of the water enterprise. C. Agcy Agreement. between City and Authority. Under the Agency Agreement, the City agrees to cause the improvements to the water enterprise to be constructed. d. Official Statement. The Official Statement is the disclosure document that will be circulated to potential purchasers of the Bonds and contains information with respect to the City, the water enterprise and the legal documents involved in the financing. e. Continuing Disclosure Certificate. The Continuing Disclosure Certificate will be executed by the Authority and the City. It contains a promise on the part of each of them to provide ongoing information to Bondholders as required by Federal securities laws. 2. Competitive Sale of Bonds. The Authority Resolution further authorizes the sale of the Bonds at competitive sale. It sets Tuesday, December 1, 1998 as the date for receipt of sealed bids for the purchase of the Bonds and further authorizes this date to be continued from Tuesday to Tuesday thereafter in the event acceptable bids are not received. The Authority Resolution authorizes the publication of a notice of the proposed competitive sale of the Bonds and circulation of a Notice of Intention to Sell Bonds and the Preliminary Official Statement to prospective bidders. 3. Bid By Financial Consultant. The Authority Resolution also allows the Authority and City Financial Consultant, Stone & Youngberg LLC, to submit a bid with respect to the purchase of the Bonds. Under provisions of Government Code Sections 53690 through 53692, Authority consent is required in the case of a bid by the Financial Consultant. 4. Ratings and Bond Insurance. The Resolution also approves the submittal of the financing documents and related information to prospective rating agencies and bond insurers in order to qualify the Bonds for a policy of municipal bond insurance. A prospective bidder on the Bonds will be allowed to determine whether or not it wishes to use Bond insurance if it is the successful bidder on the Bonds. The goal is to produce the lowest interest cost to the Authority and the City in connection with the financing. RVPUB\FJB\52427 _2_