1978 RES NO. 3808 - Laserfiche WebLink

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y of tie City of Colton to each owner of property, described in the assessment, as appears upon the tax rolls current at the time -of mailing., of a notice notifying the owner of the amount due'and the date when payment is due and stating that the payment is subject to penalty if not paid on or prior to the due date. The mailing shall be made at least 15 days before each respective 15th day of April. and October immediately preceding the. July 2 and January 2 dates on which cou- pon payments are due to the bondholder. SECURITY: Each Bond is secured by the unpaid assessment upon the lot or 'parcel of land described therein, which unpaid assessment constitutes alien upon the property so described: Should default be made in the annual payment of the principal .or in any payment of interest by the owner of the lot or parcel of land assessed, or anyone on behalf of the owner. the holder of the Bond is entitled to cause foreclosure proceedings to be instituted pursuant to law. The lien of the unpaid assessment is subordinate to all fixed special assess- ment liens previously imposed upon the same property, but has priority over all fixed special assessment liens which may thereafter be created against the property. Such lien is coequal to and independent of the lien for general taxes. There are prior fixed special assessment liens on the properties assessed in these proceedings. NEITHER THE CITY OF COLTON NOR ANY OFFICER THEREOF IS LIABLE FOR THE PAYMENT OF THE PRINCIPAL OF AND INTEREST DIV ANY BOND OTHERWISE THAN FROM THE REDEMPTION FUND CREATED IN THE PROCEEDINGS FOR SUCH BOND. For further explanation see caption "Bondholder's Rights Upon Default" in the following Official Statement. LEGAL OPINION: The legal opinion of F. MacKenzie Brown, Newport Beach, California, approving the validity of the Bonds will be provided without charge to the purchaser at the time of delivery of the Bonds. Fees payable to F. MacKenzie. Brown, as Bond Counsel, are payable solely from the proceeds of assessments and the Bonds; hence, such fees are necessarily contingent upon the successful implementation and funding of the Project. TAX EXEMPT: In the opinion of Bond Counsel, interest on the Bonds is ex- empt from taxation by the United States of America under present Federal income tax laws and from State of California personal income taxes under existing statutes, regulations, rulings and court decisions; the Bonds are exempt from all other State of California taxes except inheritance, gift and franchise taxes. Interest may become taxable on any Bond held by a substantial user (or re- lated person) of the facilities financed with the proceeds of the Bonds within the meaning of Section 103 (b) of the 'Internal Revenue Code of 1954, as amended. In the event that prior to the delivery of the Bonds the income received by private holders from bonds of the same type and character shall.be declared to be taxable under any Federal income tax laws, either by the terms of such laws or by a ruling of a Federal income tax authority or official, which is followed by the Internal Revenue Service, or by decision of any Federal Court, the purchaser