Resolution 1983-50
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RESOLUTION NO. 83-
50
A RESOLUTION DETERMINING UNPAID ASSESSMENTS
AND PROVIDING FOR ISSUANCE OF BONDS
EAST NINTH STREET ET AL. ASSESSMENT DISTRICT 83-l
RESOLVED, by the City Council (the "Council") of the City of
Gilroy (the "City"), Santa Clara County (the "County"), California, that
WHEREAS, the Council has provided in proceedings cor~ucted under
and pursuant to its Resolution No. 80-71 of Preliminary Det~rmination
and of Intention, adopted August 4, 1980, as amended, that serial bonds
will be issued to represent the unpaid assessments pursuant to Bond
Plan B, Division 3, Article III, Chapter l2A of the Gilroy City Code
(the "Bond La~");
WHEREAS, a complete list of all unpaid assessments has been made
by the City Clerk as Collection Officer and filed with the City
Treasurer (the "Treasurer"); and
WHEREAS, the Council has duly considered said list and has
determined that the same is an accurate statement thereof;
,
NOW, THEREFORE, THE COUNCIL HEREBY DETERMINES AND ORDERS, as
follows:
1. List of Unpaid Assessments. That the assessments now
remaining unpaid are as shown on said list and on Exhibit "A" attached
hereto and by this reference made a part hereof, that the aggregate
amount thereof is $898,355.95, and that for a particular description of
the lots or parcels of land bearing the respective assessment numbers
set forth in said list, reference is hereby made to the assessment and
diagram recorded in the office of the Superintendent of Streets of the
City after confirmation by the Council.
2. Issuance of Bonds. Bonds aggregating $898,355.95 in
principal amount shall be issued as herein provided upon the security
of said unpaid assessments in accordance with the provisions of the
Bond Law, and under and pursuant to the provisions of said Resolution
of Preliminary Determination and of Intention, as amended, and the
proceedings thereunder duly had and taken. The Bonds authorized herein
(the "Bonds" and sometimes the "Bond") shall be issued in the form of
coupon bonds, shall be known as "Improvement BondS, City of Gilroy,
East Ninth Street Et AI. Assessment District 83-1, Series 83-l", be
dated June 27, 1983, be numbered, of the denominations and mature in
the amounts and on the dates set forth in Exhibit "B" attached hereto
and by this reference made a part hereof.
3. Interest. The Bonds shall bear interest from their date at
the rate or rates determined by the Council at the time of award of
sale of the Bonds, payable commencing on January 2, 1984, and
semiannually thereafter on July 2 and January 2 of each year to their
respective dates of maturity.
Each Bond will continue to bear interest after maturity at
the rate stated therein, provided it is presented at maturity and
payment thereof is refused on the sole ground that there is not
sufficient money in the Redemption Fund with which to pay same; if it
is not presented at maturity, interest thereon will run only until
maturity.
RESOLUTION NO. 83 - 50
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4. Payable. The principal of and interest on the Bonds, and
any redemption premium, shall be payable in lawful money of the united
States of America by Bank of America National Trust and Savings
Association, as Paying Agent of the City, at its Corporate Agency
Service Center, San Francisco, California. The Paying Agent shall be
the registrar for any registration, transfer and conversion of the
Bonds. Interest shall be payable to the bearer of coupons pertaining
to the Bonds upon presentation and surrender thereof at said office of
the paying Agent as they severally become due, and to the holder of
record of Bonds registered as to both principal and interest by check
or warrant mailed to the registered holder's address as it appears on
the registry books maintained by the paying Agent. Principal and any
redemption premium are payable at maturity or upon the prior redemption
thereof to the holder of any bearer Bond and to the registe-ed holder
of any Bond registered as to both principal and interest up~n
presentation and surrender thereof at said office of the Paying Agent.
5. Form. The Bonds, the registration endorsement thereon and
the coupons-ro-be attached to the Bonds shall be substantially in the
forms set forth in Exhibit "C" attached hereto and by this reference
made a part hereof, the blank spaces therein to be filled in to conform
to the provisions of this Resolution.
6. Execution. The Bonds shall be executed on behalf of the
City and under its official seal by the Treasurer and by the City Clerk
and the coupons attached to the Bonds shall be executed by the
Treasurer whose signature may be reproduced on the Bonds and on the
coupons by engraved, printed or lithographed facsimile thereof, and the
official seal may be placed on the Bonds in like manner. Such signing
and sealing shall constitute and be a sufficient and binding execution
of each and everyone of the Bonds and coupons thereof, respectively.
If any officer whose signature appears on the Bonds or
coupons ceases to be such officer before the delivery of the Bonds to
the purchaser thereof, such signature shall be as valid as if such
officer had remained in office until the delivery of the Bonds.
7. Preparation of Bonds. The City Clerk is hereby directed to
cause Bonds of quality usually required of purchasers of municipal
bonds to be prepared in accordance with this Resolution and the
accepted bid for the Bonds, and upon their completion to deliver same
to the Treasurer who shall hold the Bonds in safekeeping until ready
for execution and delivery to the purchaser thereof.
Until definitive Bonds shall be prepared, the City may cause
to be executed and delivered in lieu of such definitive Bonds and
subject to the same provisions, limitations and conditions as are
applicable in the case of definitive Bonds, except that they may be in
any denominations authorized by the Treasurer, one or more typed,
printed, lithographed or engraved temporary Bond(s) in fully registered
form, as may be authorized by the Treasurer, substantially of the same
tenor and, until exchanged for definitive Bonds, entitled and subject
to the same benefits and provisions of this Resolution as definitive
Bonds. If the City issues one or more temporary Bond(s) it will
execute and furnish definitive Bonds without unnecessary delay and
thereupon the temporary Bond(s) may be surrendered to the Treasurer in
exchange for such definitive Bonds, without expense to the Bondholder.
All temporary Bonds so surrendered shall be canceled and shall not be
reissued.
If Cusip identification numbers are assigned by the Cusip
Service Bureau for printing on the Bonds, neither the failure to print
such number on any Bond nor any error with respect thereto shall
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constitute cause for a failure or refusal by the initial purchaser of
the Bonds to accept delivery of and pay for the Bonds in accordance
with the terms of the accepted bid for the Bonds.
8. Delivery of the Bonds. Upon the execution of the Bonds and
the performance of the conditions contained in the accepted bid
therefor, the Treasurer shall, upon receipt of the purchase price
therefor, deliver the Bonds to the purchaser thereof.
The City Clerk and Treasurer are authorized and directed to
deliver to the purchaser of the Bonds a signature and no-litigation
certificate in form customarily required by purchasers of municipal
bond s .
The Treasurer is further authorized and directed :0 execute
and deliver to the purchaser of the Bonds a receipt in form customarily
required by purchasers of municipal bonds, evidencing the payment of
the purchase price of the Bonds, which receipt shall be conclusive
evidence that the purchase price has been paid and has been received by
the City. If payment for the Bonds is made by the purchaser thereof at
a bank rather than at the office of the Treasurer, the Treasurer may
authorize such bank to cause a receipt for the purchase price of the
Bonds to be executed on behalf of the City by an authorized officer of
such bank, provided that the Treasurer is first satisfied that the
funds representing such purchase price have been received by the City.
The Treasurer is further authorized and directed to execute
and provide to the purchaser of the Bonds a certificate as to the
amount and use reasonably expected by the City, as of the date or dates
of issue of the Bonds, of the proceeds thereof, as provided by
Sections 1.l03-l3, l.l03-l4 and 1.l03-l5 of the Income Tax Regulations
under the Internal Revenue Code of 1954, as amended.
9. Record of Bonds. The City shall keep at the office of the
Paying Agent a record showing the series, number, date, amount, rate of
interest, the last known holder of each Bond, and the number and amount
of each interest coupon paid. The Paying Agent shall cancel or cause
to be canceled each Bond and coupon paid.
The City shall keep at the office of the paying Agent
sufficient books for the registration and transfer of the Bonds Showing
at all times what Bonds are registered and in whose names, and, upon
presentation for such purpose, the Paying Agent shall, under such
reasonable regulations as the City and paying Agent may prescribe,
register or transfer or cause to be registered or transferred, on said
registry books, the Bonds as herein provided.
lO. Establishment of Funds. There are hereby created and
established the following special funds which shall be held and
maintained by the Treasurer as separate trust accounts, distinct from
all other accounts of the City:
(a) The East Ninth Street Et Al. Assessment District 83-l
Improvement Fund, or similar designation as determined by the Treasurer
(the "Improvement Fund") ;
(b) The East Ninth Street Et Al. Assessment District 83-l,
Series 83-1 Bond Redemption Fund, or similar designation as determined
by the Treasurer (the "Redemption Fund"); and
(c) The East Ninth Street Et Al. Assessment District 83-l,
Series 83-l Bond Reserve Fund, or similar designation as determined by
the Treasurer (the "Reserve Fund").
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ll. Improvement Fund. Moneys received by the City from the cash
payments of assessments, contributions or any other source for the
acquisition, construction and financing of the improvements described
in the assessment proceedings, together with the proceeds received from
the sale of the Bonds, including any premium received by the City on
the sale of the Bonds (but not including the moneys required to be
placed in the Reserve Fund pursuant to Section 13 hereof nor any
accrued interest which shall be placed in the Redemption Fund) shall be
placed in the Improvement Fund. Disbursement from the Improvement Fund
shall be made exclusively to pay the costs of the acquisitions and/or
improvements, together with all expenses incidental thereto.
Any surplus remaining in the Improvement Fund after payment
of all costs shall be used, in such amounts as the Council ray
determine, in accordance with the provisions of law for one lr more of
the following purposes:
(a) Transfer to the general fund of the City, provided that
the amount of any such transfer shall not exceed the lesser of $l,OOO
or 5% of the total amount expended from the Improvement Fund;
(b) As a credit upon the assessment and any supplemental
assessment; provided that such surplus may, if the Council so
determines, also be applied as a credit to the City on account of
contributions made by it towards the cost and expenses of the
acquisitions and/or improvements in the proportion which such
contribution bears to the total amount of the assessment or
supplemental assessment prior to the deduction of all such
contributions; or
(c) For the maintenance of any improvements acquired or
constructed in said proceedings.
l2. Redemption Fund. Any accrued interest received on account
of the sale of the Bonds, all sums received from the collection of
unpaid assessments and interest and penalties thereon (but excluding
collection charges) as provided in Section 16 hereof, and any amounts
advanced from the Reserve Fund or otherwise in satisfaction of the
City's obligations under Section 17 hereof shall be placed in the
Redemption Fund. Disbursement from the Redemption Fund shall be made
exclusively to pay the principal or redemption price of the Bonds and
the interest due thereon.
Any surplus remaining in the Redemption Fund after payment
of all Bonds and the interest thereon shall first be applied to
repayment to the City of any special taxes levied by it for the purpose
of paying for lands purchased by it under Part l3 of the Improvement
Bond Act of 19l5, Division 10 of the Streets and Highways Code of the
State of California (incorporated in the Bond Law by reference) less
its recovery on the lands purchased at such delinquent sale, and also
of any costs incurred by it thereunder. The remainder shall be repaid
in accordance with the provisions of Section 8783 of said Streets and
Highways Code to persons paying supplemental assessments, if any, and
the balance may be proportionately credited upon the final installments
due upon the assessments securing the Bonds and repaid to those persons
whose assessments have been previously paid or may be transferred to
the general fund of the City.
13. Reserve Fund. An amount equal to ten percent (10%) of the
principal amount of the Bonds shall be placed in the Reserve Fund upon
receipt of the proceeds of the sale of the Bonds. Monies in the Reserve
Fund shall constitute a trust fund for the benefit of Bondholders. Any
income realized from the investment of monies in the Reserve Fund shall
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be credited to the Reserve Fund, provided that, in order to assure that
the Bonds do not become arbitrage bonds as defined in the Internal
Revenue Code of 1954, as amended, the Reserve Fund shall be
administered so that at no time does the amount therein exceed fifteen
percent (15%) of the original face amount of the Bonds, unless the
proceeds originally received by the City from the sale of the Bonds
(including any accrued interest) are less than ninety-eight percent
(98%) of the original face amount of the Bonds, in which event the
Reserve Fund shall at no time exceed fifteen percent (l5%) of such
proceeds.
Monies in the Reserve Fund shall be paid and transferred in the
following amounts and at the fOllowing times and under any of the
following circumstances:
(a) Whenever there are insufficient funds in the Redemption
Fund to meet the next maturing installment of principal of or interest
on the Bonds due to delinquent installments of assessments, an amount
necessary to pay such deficiency shall be transferred as an advance
from the Reserve Fund to the Redemption Fund. The amount so advanced
shall be reimbursed and deposited in the Reserve Fund from the proceeds
of redemption or sale of the parcel for which payment of delinquent
installments was made from the Reserve Fund.
(b) Each unpaid assessment securing the Bonds which is paid
in cash prior to its final maturity date pursuant to the provisions of
the Bond Law for the advance payment of assessments shall be
proportionately reduced by an amount equal to the ratio of the total
amount initially provided for the Reserve Fund to the total amount
originally assessed in the proceedings for the Bonds, and an amount
equal to the reduction in such assessment shall be transferred from the
Reserve Fund to the Redemption Fund.
(c) Any income realized from the investment of monies in
the Reserve Fund which would cause the foregoing limitation to be
exceeded shall be placed in the Redemption Fund and credited upon the
unpaid assessments in the manner set forth in Section 10427.l of the
Streets and Highways Code; provided that, in order to comply with
current federal regulations, any excess that cannot be credited to
unpaid assessments and expended within thirteen (l3) months (except for
a reasonable carryover amount not to exceed the greater of one year's
earnings on the Redemption Fund or one-twelfth of annual debt service)
from the date of deposit in the Redemption Fund shall be applied to the
advance retirement of the Bonds in the manner provided in the Bond
Law. Should federal regulations be changed, administration of the
Reserve Fund must conform to such regulations.
(d) Whenever the balance in the Reserve Fund is sufficient
to retire all the remaining outstanding Bonds, collection of the
principal and interest on the unpaid assessments shall be discontinued
and the Reserve Fund shall be liquidated in retirement of the Bonds.
The Council shall order the same to be credited against the assessments
remaining unpaid in the manner set forth in Section l0427.l of said
Streets and Highways Code, and the amount apportioned to each unpaid
assessment shall be credited against the last unpaid assessment
installment, and, if the amount apportioned to each parcel exceeds the
amount of said last installment, then such excess shall be credited
against the next preceding unpaid assessment installment or installments
until exhausted. In the event that the balance in the Reserve Fund at
the time of liquidation exceeds the amount required to retire all
outstanding Bonds, the excess shall be apportioned to each parcel upon
which the individual assessment remained unpaid at the time the balance
in the Reserve Fund was sufficient to retire all outstanding Bonds.
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The payments shall be made in cash to the respective owners of the
parcels except that, if the excess is not greater than one thousand
dollars ($l,OOO), the excess may be transferred to the general fund of
the City.
l4. Investment of Funds. Moneys in the Improvement Fund, the
Redemption Fund, and tne Reserve Fund may be invested in any
obligations which are then authorized by the laws of the state of
California as investments for local agencies, maturing on a date or
dates prior to the need for such moneys. Any income or interest
thereon shall accrue to and be deposited in the fund from which said
moneys were invested, subject to the limitation in Section l3(c) hereof
with respect to the Reserve Fund.
15. Arbitrage Covenant. The City covenants that as ~ong as any
Bonds remain outstanding no use will be made at any time of the
proceeds thereof which use (1) is a use reasonably expected at the time
of issuance of the Bonds, and (2) would, if such use were reasonably
expected at t~e time of issuance of the Bonds, cause such Bonds to be
"arbitrage bonds" within the meaning of Section l03(c) of the Internal
Revenue Code of 1954 and the regulations thereunder as the same may be
amended from time to time; provided, however, that the right is
reserved to make any investment of such proceeds permitted by law if,
when and to the extent that said Section 103(c) or regulations
thereunder shall be repealed or relaxed or shall be held void by final
decision of a court of competent jurisdiction, but only if any
investment made by virtue of such repeal, relaxation or decision would
not result in the interest on the Bonds being subject to federal income
taxation.
l6. Collection of Unpaid Assessments. The unpaid assessments
shown on said list filed with the Treasurer and determined by the
Council, together with the interest thereon, shall remain and
constitute a trust fund for the redemption and payment of the principal
of the Bonds and for the interest due thereon, which unpaid assessments
shall be payable in annual series corresponding in number to the number
of serial maturities of the Bonds issued. An annual proportion of each
unpaid assessment shall be payable in each year preceding the date of
maturity of each of the several series of Bonds issued, sufficient to
pay the Bonds when due, and such proportion of each unpaid assessment
coming due in any year, together with the annual interest thereon,
shall be payable in the same manner and at the same time and in the
same installments as the general taxes of the City on real property are
payable, and become delinquent at the same times and in the same
proportionate amounts and bear the same proportionate penalties and
interest after delinquency as do the general taxes on real property of
the City. A record of the several installments of principal and
interest on said unpaid assessments which are to be collected in each
year during the term of the Bonds shall be kept in the office of the
County Auditor-Controller. When the first interest coupon is for
interest for a longer period than six months, the County Auditor-
Controller shall enter the amount thereof in the column on the
assessment roll provided for the first installment, and the balance in
the column on the assessment roll provided for the second installment.
All sums received from the collection of said unpaid assessments and of
the interest and penalties thereon shall be placed in the Redemption
Fund, except that any percentage collected to represent the costs of
such collection shall be retained by the County Auditor-Controller.
17. Advances from Available Surplus Funds. In the event of a
delinquency in the payment of any installment of the assessment levied
upon any property for the payment of the principal and interest of the
Bonds, the City, in the absence of any other bidder, shall be the
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purchaser of delinquent property upon which any of said assessments are
levied in like manner in which it becomes, or may become, the purchaser
of property sold for the nonpayment of general City taxes, and shall
pay and transfer from available surplus funds into the Redemption ~und
the amount of any delinquent assessment installment and interest
thereon. The City shall also pay and transfer from available surplus
funds into the Redemption Fund the amount of any future delinquent
assessment and interest thereon on such property pending redemption.
Any amounts so advanced shall be recoverable upon sale or redemption of
the property.
l8. Covenant to Foreclose. The City hereby covenants with the
holders of the Bonds that it will order and cause to be commenced and
diligently prosecuted to completion, court foreclosure proc' ~dings upon
the lien of any and all delinquent assessments and interest, pursuant
to and as provided in Part l4 of the Improvement Bond Act of 19l5.
Such foreclosure proceedings shall be commenced within l50 days
following the date of such delinquency.
19. Redem2tion Prior to Maturity. Each Bond outstanding may be
redeemed and paid in advance of maturity upon the second day of January
or July in any year by giving at least 60 days notice and by paying the
principal amount thereof together with a premium equal to 5% of the
principal plus interest to the date of advanced maturity, unless sooner
surrendered, in which event said interest will be paid to the date of
payment, all in the manner and as provided in the Bond Law.
The provisions of Parts 8 and 11 of the Improvement Bond Act
of 19l5 are applicable to the collection of assessments and to the
advance retirement of Bonds.
The Treasurer shall call for redemption and retire Bonds
upon prepayment of assessments in amounts sufficient therefor. In
selecting Bonds for advance retirement, the Treasurer shall choose
Bonds in such manner as to disturb as little as possible the
relationship of unpaid assessments to Bonds outstanding.
20. Registration and Transfer of Bonds. Each Bond herein
authorized may be registered only as to both principal and interest and
thereafter may be transferred, discharged from registration and
registered again, upon the written request of the holder or by attorney
duly authorized in writing, and upon presentation of the Bond to the
Paying Agent for such purpose.
Upon presentation of a Bond for registration, the coupons
shall be removed therefrom and canceled (or preserved in a place of
safekeeping, at the option of the paying Agent), and the name and
number of the Bond, the name and address of the holder in whose name it
is to be registered, the date of such registration and a notation that
the Bond is registered as to both principal and interest shall be
entered in the registry books maintained by the Paying Agent, and
appropriate endorsement thereof shall be made by the Paying Agent in
the space provided therefor on the back of the Bond. until such
registration is discharged as hereinafter provided, the interest when
due shall be payable only to the registered holder and the principal
when due shall be payable only to such holder upon surrender of the
Bond to the Paying Agent.
A registered Bond may be transferred only by the registered
holder, or by attorney duly authorized in writing, upon presentation of
the Bond to the Paying Agent together with a written instrument of
transfer satisfactory to the Paying Agent, and by the Paying Agent
endorsing such transfer on the Bond and in the registry books of the
Paying Agent.
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A registered Bond may be discharged from registration upon
written request of the registered holder. In such case, the paying
Agent shall transfer the Bond to bearer by appropriate endorsement on
the Bond and in the registry books of the paying Agent, cause all
unmatured coupons that have been removed from the Bond to be reattached
to the Bond (such coupons to be reprinted, if necessary), and deliver
the Bond and coupons to the holder, and thereupon negotiability and
transferability by delivery shall be restored.
Bonds that have been discharged from registration are
subject to successive registrations and transfers in the manner
heretofore provided.
The person requesting registration, transfer or discharge
from registration shall, as a condition precedent to the e~~rcise of
such privilege, pay the City's and paying Agent's reasonabl charges
therefor, if any, including any cost of reprinting the coupons and any
tax or other governmental charge required to be paid with respect
thereto.
Notwithstanding the foregoing provisions, any temporary Bond
registered on the books of the Treasurer in lieu of registration on the
registry books of the paying Agent may be transferred on the books of
the Treasurer without expense to the person requesting transfer upon
surrender of such temporary Bond to the Treasurer, accompanied by a
duly executed written instrument of transfer satisfactory to the
Treasurer, and thereupon, pending preparation of definitive Bonds, the
City will issue and the Treasurer will deliver a new fully registered
temporary Bond of like maturity and principal amount to the transferee
in exchange for and upon the cancelation of such surrendered temporary
Bond.
The City and the Paying Agent may deem and treat the person
in whose name any outstanding Bond shall be registered upon the
registry books of the Paying Agent or, in the case of temporary Bonds,
upon the registry books of the Treasurer, 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, and interest on such Bond and for all other purposes.
All such payments so made to any such registered holder or upon the
order of such holder 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 Paying Agent shall be affected by
any notice to the contrary.
Except as hereinafter provided, the Paying Agent shall not
be required to make any transfer and exchange between the June l7 or
December 18 next preceding an interest payment date and such interest
payment date, or, in the case of any proposed redemption of Bonds,
after the selection of Bonds for such redemption.
Any other provision of this Resolution to the contrary
notwithstanding, the Association, Insurer or insurance trustee (as
defined in any municipal bond insurance policy pertaining to the Bonds)
shall be entitled, without charge therefor, at any time to transfer
registration of any registered Bond which it holds into the name of the
Association, Insurer or said trustee upon presentment of such Bond and
either appropriate authority from the registered holder thereof for
such transfer or a claim of ownership and an undertaking to indemnify
the City from claims resulting from such transfer; and to cause the
registry books of the Paying Agent to be endorsed to indicate its
interest in any such Bond upon presentation only of such a claim and
such an undertaking. The Association, Insurer and said trustee are
entitled to have access to the registration records pertaining to any
such Bond at any reasonable time and to rely upon such records.
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No gain or loss of interest shall result from any transfer
and exchange of Bonds.
2l. Mutilated, Destro~ed or Lost Bonds. In case any Bond shall
become mutilated or defaced in respect of the body of such Bond or the
coupons, if any, appertaining thereto, so as to impair its value to the
holder thereof, or shall be believed by the City and paying Agent to
have been destroyed or lost, upon clear and unequivocable proof of
ownership satisfactory to the City and Paying Agent and upon the
surrender at the office of the paying Agent or Treasurer of such
mutilated or defaced Bond with its coupons, if any, sufficiently
identifiable by number and description, or upon the receipt of evidence
satisfactory to the City and Paying Agent of such destruction or loss,
and upon payment of all expenses incurred by the City and r~ying Agent
in the premises and after compliance with such other reason ble
regulations as the City and paying Agent may prescribe, and, in the
case of any Bond or coupon claimed to have been destroyed or lost, upon
receipt of indemnity satisfactory to the City and paying Agent, the
City shall ex~cute and the Treasurer shall deliver at the office of the
Treasurer or Paying Agent a new Bond of the same maturity and for the
same principal amount, with the coupons, if any, appertaining thereto,
of like tenor and date, bearing the same number, in exchange and
substitution for and upon cancelation of the mutilated or defaced Bond
and its coupons, if any, or in lieu of and in substitution for the Bond
and coupons, if any, so destroyed or lost. Any Bond or coupon issued
as a duplicate for a destroyed or lost Bond or coupon shall state on
its face substantially that it is "Issued as a duplicate in place of
original of same number and denomination claimed to have been lost or
destroyed. Only one to be paid." With respect to any mutilated or
defaced Bond or coupon, the City and paying Agent may require the
registered holder thereof to submit indemnity satisfactory to the City
and paying Agent prior to the issuance of any duplicate thereof. If
any destroyed or lost Bond or coupon shall have matured, payment of the
amount due thereon may be made by the City or paying Agent upon receipt
of like proof, indemnity and payment of expenses without surrender of
such Bond or coupon.
Any such duplicate Bond or coupons issued pursuant to this
section shall be entitled to equal and proportionate benefits with all
other Bonds issued hereunder. The City and the paying Agent shall not
be required to treat both the original Bond and any duplicate Bond as
being outstanding, but both the original and duplicate Bond shall be
treated as one and the same.
22. Certified Copies. The City Clerk shall provide a certified
copy of this resolution to the Treasurer who shall take such action as
shall be necessary to assure compliance with the terms and conditions
hereof. The City Clerk is further directed to provide a certified copy
of this resolution to the County Auditor-Controller.
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I hereby certify that the foregoing resolution was duly and
regularly adopted and passed by the City Council of the city of Gilroy,
California, at a regular thereof held on the 20thday of June, 1983,
by the following vote of the members thereof:
AYES, and in favor thereof, Councilmembers: ALBERT, GAGE, HUGHAN,
LINK, TAYLOR, VALDEZ and GOODRICH.
NOES, Councilmembers: None
ABSENT, Councilmembers: None
APPROVED:
2f~/~
M yor
RESOLUTION NO. 83 - 50
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LIST OF UNPAID ASSESSMENTS
EAST NINTH STREET ET AL. ASSESSMENT DISTRICT 83-l
Diagram and Assessor's Unpaid
Assessment Number Parcel Number Assessment
1 84l-l2-0l4 $ 25,562.66
2 84l-12-0l3 l3,608.78
3 84l-l2-0l7 876.55
4 84l-l2-0l2 28,858.69
5 84l-l2-01l 23,890.74
7 841-12-048 l,3l8.72
8 841-12-047 9,659.68
12 84l-66-01S 22,293.46
l3 84l-l6-074 26,783.66
14 84l-l6-094 23,503.22
l6 841-16-034 6l,462.96
l7 84l-16-047 l69,548.83
18 84l-16-0S6 l33,936.44
19 841-16-029 l8,904.6l
21 841-66-017 79,999.73
23 841-66-007 5,097.88
24 841-66-006 4,158.07
27 841-16-093 15,847.60
28 84l-16-048 229,63l.27
29 84l-66-0l4 2,l06.80
30 84l-66-0l3 l,305.60
Total Unpaid Assessments $898,355.95
EXHIBIT "A"
.
.
MATURITY SCHEDULE
IMPROVEMENT BONDS
CITY OF GILROY
EAST NINTH STREET ET AL. ASSESSMENT DISTRICT 83-l
SERIES 83-1
Bond Numbers Principal 'atur i ty Date
~Inc1usive) Denomination Amount (July 2)
1 $3,355.95 $ 3,355.95 1984
2 - 6 5,000.00 25,000.00 1984
7 - l3 5,000.00 35,000.00 1985
14 - 20 5,000.00 35,000.00 1986
2l - 28 5,000.00 40,000.00 1987
29 - 37 5,000.00 45,000.00 1988
38 - 46 5,000.00 45,000.00 1989
47 - 56 5,000.00 50,000.00 1990
57 - 67 5,000.00 55,000.00 1991
68 - 79 5,000.00 60,000.00 1992
80 - 92 5,000.00 65,000.00 1993
93 - 97 l,OOO.OO 5,000.00 1994
98 - 111 5,000.00 70,000.00 1994
l12 - 116 1,000.00 5,000.00 1995
117 - 131 5,000.00 75,000.00 1995
132 - 136 1,000.00 5,000.00 1996
137 - 152 5,000.00 80,000.00 1996
153 - 157 l,OOO.OO 5,000.00 1997
158 - l75 5,000.00 90,000.00 1997
l76 - 196 5,000.00 l05,000.00 1998
$898,355.95
EXHIBIT "B"
.
.
BOND FORM. The Bonds shall be substantially in the following
form:
IMPROVEMENT BOND
CITY OF GILROY
EAST NINTH STREET ET AL. ASSESSMENT DISTRICT 83-l
SERIES 83-1
BOND NO.
$
Under and by virtue of Bond Plan B, Division 3, Article III,
Chapter l2A, of the Gilroy City Code, the City of Gilroy (a municipal
corporation orerating under a freeholders' charter), in the County of
Santa Clara, State of California, will, on the second day of July, ,
out of the redemption fund for the payment of the bonds issued upon the
assessments made for the acquisitions, work and improvements more fully
described in Resolution No. 80-7l of Preliminary Determination and of
Intention, passed by the City Council of said City on the 4th day of
August, 1980, as amended, pay to bearer (or, if this bond is registered
as herein provided, to the registered holder thereof) the sum of
Dollars ($
with interest thereon from the 27th day of June, 1983, at the rate of
percent ( %) per annum, all as is hereinafter specified, and
at Bank of America~ional Trust and Savings Association, as paying
Agent, at its Corporate Agency Service Center, San Francisco,
California.
This bond is one of several annual series of bonds of like date,
tenor and effect, but differing in *(interest rates, amounts and)
maturities, issued by said City under said Bond Plan B for the purpose
of providing means for paying for the acquisitions, work and
improvements described in said Resolution of Preliminary Determination
and of Intention, as amended, and is secured by the moneys in said
redemption fund, by the reserve fund established therefor and by the
unpaid assessments made for the payment of said acquisitions, work and
improvements, and, including principal and interest, is payable
exclusively out of said redemption fund.
The interest is payable semiannually, to wit: On the second day
of January and July in each year hereafter, upon presentation of the
proper coupons therefor; provided, that the first of said coupons is
for the interest to the second day of January, 1984, and thereafter the
interest coupons are for the semiannual interest.
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 is not sufficient
money in said redemption fund with which to pay same. If it is not
presented at maturity, interest thereon will run until maturity.
* Modify as necessary to comply with terms of Bond sale.
EXHIBIT "C"
, . . ' ..
.
.
This bond may be registered as to principal and interest, with
the privilege of transfer, discharge from registration and successive
registration, upon written request of the holder and presentation of
'h~ tond to the Paying Agent and payment of the charges, if any, all in
the manner and upon the terms set forth in the resolution providing for
the issuance hereof.
This bond may be redeemed and paid in advance of maturity upon
the second day of January or July in any year by giving the notice
provided in said Bond Plan B and by paying principal and accrued
interest together with a premium equal to 5 percentum of the principal.
IN WITNESS WHEREOF, said City of Gilroy has caused this bond to
be signed by the Treasurer of said City and by its Clerk, a~d has
caused its Clerk to affix thereto its corporate seal, all 0; the 27th
day of June, 1983.
(not for si~nature)
Cler
City of Gilroy
(not for signature)
Treasurer
City of Gilroy
(SEAL)
COUPON FORM. The coupons to be attached to the Bonds shall be
substantially in the following form:
On the Second Day of
the CITY OF GILROY, California, will (unless
the bond to which this coupon appertains has
been duly called for earlier redemption) pay
to bearer, from its designated redemption fund,
the amount hereon at Bank of America National
Trust and Savings Association, Corporate Agency
Service Center, San Francisco, California, as
interest due on IMPROVEMENT BOND, CITY OF GILROY,
EAST NINTH STREET ET AL. ASSESSMENT DISTRICT
83-1, SERIES 83-l, dated June 27, 1983.
,
Coupon No.
$
No.
(not for signature~
Treasurer
City of Gilroy
EXHIBIT PC"
(ii)
. .
.
.
... '.
REGISTRATION FORM: The form of endorsement for registration on
the Bonds shall be substantially as follows:
REGISTRATION
This bond is registered in the name of the registered holder
last entered below and both the principal of and interest on this bond
are payable only to such holder; provided that this bond may be
registered to bearer and thereby discharged from registration and the
negotiability hereof restored.
Note: No writing below except by the paying Agent.
Date of
Registry
Name and Address
of Re~istered Holder
Signature of
Paying Agent
EXHIBIT "c"
(iii)