1983-093-Determining Unpaid Assessments And Providing For Issuance Of Bonds2020C-533a WMAM:PDA..iEK:rva 05/06/83 14c
RESOLUTION NO. 1983- 92
A RESOLUTION DETERMINING UNPAID ASSESSMENTS
AND PROVIDING FOR ISSUANCE OF BONDS
BONNIE LANE ASSESSMENT DISTRICT
RESOLVED, by the Town Council (the "Council") of the Town of Los
Gatos (the "Town"), Santa Clara County (the "County"), California, that
WHEREAS, the Council has provided in proceedings concucted under
and pursuant to its Resolution of Intention No. 1982-214, adopted
November 15, 1982, as amended, that serial bonds will be issued to
represent the unpaid assessments pursuant to the Improvement Bond Act
of 1915, Division 10 of the Streets and Highways Code of the State of
California (the "Bond Act");
WHEREAS, a complete list of all unpaid assessments has been made
by the Town Clerk as Collection officer and filed with the Town
Treasurer (the "Treasurer");
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:
5. Form. The Bonds, the registration endorsement thereon and
the coupons to 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
Town and under its official seal by the Treasurer and by the Town Clerk
and the coupons 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 b,, placed on
the Bonds in like manner. Such signing and sealing shall constitute
and be a sufficient and binding execution of each and every one 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 Town 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 Town 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 Town 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
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 th,, 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 Town Clerk and Treasurer are authorized and directed to
execute and deliver to the purchaser of the Bonds a signature and
no-litigation certificate in form customarily required by purchasers of
municipal bonds.
The Treasurer is further authorized and directed to 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 Town. 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 Town 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 Town.
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 Town, as of the date or dates
of issue of the Bonds, of the proceeds thereof, as provided by
Sections 1.103-13, 1.103-14 and 1.103-15 of the Income Tax Regulations
under the Internal Revenue Code of 1954, as amended.
9. Record of Bonds. The Town and Paying Agent shall keep 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 or Treasurer shall cancel or
cause to be canceled each Bond and coupon paid.
The Town shall keep at the office of the Treasurer
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 Treasurer shall, under such
reasonable regulations as the Treasurer may prescribe, register or
transfer or cause to be registered or transferred, on said registry
books, the Bonds as herein provided.
10. 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 Town:
(a) The Bonnie Lane Assessment District Improvement Fund,
or similar designation as determined by the Treasurer (the "Improvement
Fund ")
(b) The Bonnie Lane Assessment District, Series 83 -1 Bond
Redemption Fund, or similar designation as determined by the Treasurer
(the "Redemption Fund "); and
(c) The Bonnie Lane Assessment District, Series 83 -1 Bond
Reserve Fund, or similar designation as determined by the Treasurer
(the "Reserve Fund "),
11. Improvement Fund. Moneys received by the Town 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 Town 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 may
determine, in accordance with the provisions of law for one or more of
the following purposes:
(a) Transfer to the general fund of the Town, provided that
the amount of any such transfer shall not exceed the lesser of $1,000
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 Town 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.
12. 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
Town'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.
assessments have been previously paid or may be transferred to the
general fund of the Town.
13. Reserve Fund. An amount equal to $1,932.70 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 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
Town 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 (15%) 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) Any unpaid assessment securing the Bonds which is paid
in cash prior to its final maturity date pursuant to the provisions of
the Bond Act 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 said assessment shall be transferred from the
Reserve Fund to the Redemption Fund.
I
(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 10427.1 of the
Streets and Highways Code of the State of California, provided that, in
order to comply with current federal regulations, any excess that
cannot be credited to unpaid assessments and expended within thirteen
(13) 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 Act. 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 10427.1 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.
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 ($1,000), the excess may be transferred to the general fund of
the Town.
14. Investment of Funds. Moneys in the Improvement Fund, the
Redemption Fund, and the 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 provided in Section 13(c) hereof
with respect to the Reserve Fund).
15. Arbitrage Covenant. The Town covenants that as long 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 the time of issuance of the Bonds, cause such Bonds to be
Nuarbitrage bonds" within the meaning of section 103(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.
16. 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 Town 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 Town. 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 Town, in the absence of any other bidder, shall be the
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 Town taxes, and shall
pay and transfer from available surplus funds into the Redemption Fund
the amount of any delinquent assessment installment and interest
thereon. The Town 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.
18. Covenant to Foreclose. The Town hereby covenants with the
holders of the Bonds that it will order and cause to be commenced and
diligently prosecuted to completion, court foreclosure proceedings upon
the lien of any and all delinquent assessments and interest, pursuant
to and as provided in Part 14 of the Bond Act. Such foreclosure
proceedings shall be commenced within 150 days following the date of
such delinquency.
19. Redemption 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 Act.
The provisions of Parts 8 and 11 of the Bond Act 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
Treasurer 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 Treasurer}, 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 Treasurer, and appropriate
endorsement thereof shall be made by the Treasurer 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
Treasurer or to the Paying Agent on behalf of the Treasurer.
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 Treasurer together with a written instrument of
transfer satisfactory to the Treasurer, and by the Treasurer endorsing
such transfer on the Bond and in the registry books of the Treasurer.
A registered Bond may be discharged from registration upon
written request of the registered holder. in such case, the Treasurer
shall transfer the Bond to bearer by appropriate endorsement on the Bond
and in the registry books of the Treasurer, 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 exercise of
such privilege, pay the Town's reasonable 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 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
Town 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 Town 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 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 Town nor the Paying Agent shall be affected by any notice
to the contrary.
Except as hereinafter provided, the Treasurer shall not be
required to make any transfer and exchange between the June 16 or
December 16 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 Town from claims resulting from such transfer; and to cause the
registry books of the Treasurer 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.
No gain or loss of interest shall result from any transfer
and exchange of Bonds.
21. Mutilated, Destroyed 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 Town and Paying Agent to
have been destroyed or lost, upon clear and unequivocable proof of
ownership satisfactory to the Town 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 Town and Paying Agent of such destruction or loss,
and upon payment of all expenses incurred by the Town and Paying Agent
in the premises and after compliance with such other reasonable
regulations as the Town 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 Town and Paying Agent, the
Town shall execute 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 Town and Paying Agent may require the
registered holder thereof to submit indemnity satisfactory to the Town
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 Town 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 Town 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 Town Clerk shall provide a certified
copy of this resolution to the Treasurer who shall take such action as
-14-
shall be necessary to assure compliance with the terms and conditions
hereof. The Town Clerk is further directed to provide a certified copy
of this resolution to the County Auditor - Controller.
I hereby certify that the foregoing resolution was duly and
regularly adopted at a regular meeting of the Town Council of the Town
of Los Gatos, California, held on the 16th day of May, 1983, by the
following vote:
AYES, and in favor thereof, Councilmen:
NOES, Councilmen:
Mayor
Joanne Benjamin, Terrence J. Daily, Thomas J.
Ferrito, MarLyn J. Rasmussen and Mayor Brent N.
Ventura
Town Clerk of the Town of Lo.atos
-15-
LIST OF UNPAID ASSESSMENTS
TOWN OF LOS GATOS
BONNIE LANE ASSESSMENT DISTRICT
Diagram and
Assessor's
Unpaid
Assessment Number
Parcel Number
Assessment
4
532 -02 -008
$ 2,761.00
8
532 -02 -004
2,761.00
10
532 -02 -022
2,761.00
11
532 -02 -021
2,761.00
13
532 -02 -019
2,761.00
16
532 -02 -015
2,761.00
17
532 -02 -057
2,761.00
Total Unpaid Assessments
$19,327.00
EXHIBIT "A"
MATURITY SCHEDULE
IMPROVEMENT BONDS
TOWN OF LOS GATOS
BONNIE LANE ASSESSMENT DISTRICT
SERIES 83 -1
Bond Numbers
Principal
Maturity Date
(Inclusive)
Denomination
Amount
(July 2)
1
$ 327.00
$ 327.00
1984
2
1,000.00
1,000.00
1985
3
1,000.00
1,000.00
1986
4
1,000.00
1,000.00
1987
5
1,000.00
1,000.00
1988
6
11000.00
1,000.00
1989
7
1,000.00
1,000.00
1990
8
1,000.00
1,000.00
1991
9
1,000.00
1,000.00
1992
10
1,000.00
1,000.00
1993
11 -
12
1,000.00
2,000.00
1994
13 -
14
1,000.00
2,000.00
1995
15 -
16
1,000.00
2,000.00
1996
17 -
18
1,000.00
2,000.00
1997
19 -
20
1,000.00
21000.00
1998
$19,327.00
BOND FORM. The Bonds shall be substantially in the following form:
IMPROVEMENT BOND
TOWN OF LOS GATOS
BONNIE LANE ASSESSMENT DISTRICT
SERIES 83-1
RN
0
Under and by virtue of the Improvement Bond Act of 1915,
Division 10 of the Streets and Highways Code, the Town of Los Gatos, in
the County of Santa Clara, State of California, will, on the second day
of July, , out of the redemption fund for the payment of the
bonds issued upon the assessments made for the acquisitions, work and
improvements more fully described in Resolution of Intention
No. 1982-214, passed by the Town Council of said Town on the 15th day
of November, 1982, as amended, pay to bearer (or, if this bond is
registered as herein provided, to the registered holder thereof) the
sum of
Dollars ($
with interest thereon from the second day of June, 1983, at the rate of
percent ( - %) per annum® all as is hereinafter specified, and
at Barclays Bank of California, 16100 Los Gatos Boulevard, Los Gatos,
California, 95030, or at the office of the Treasurer of said Town.
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 Town under said law for the purpose of
providing means for paying for the acquisitions, work and improvements
described in said Resolution 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 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.
* modify as necessary to comply with terms of Bond sale.
EXHIBIT "C"
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.
This bond may be registered only as to both principal and
interest with the privilege of transfer, discharge from registration
and successive registration, upon written request of the holder and
presentation of the bond to the Treasurer 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 law and by paying principal and accrued interest
together with a premium equal to 5 percentum of the principal.
IN WITNESS WHEREOF, said Town of Los Gatos has caused this bond
to be signed by the Treasurer of said Town and by its Clerk, and has
caused its Clerk to affix thereto its corporate seal, all on the second
day of June, 1983.
(not for signature) (not for signature)
Treasurer Clerk
( SEAL)
COUPON FORM. The coupons to be attached to the Bonds shall be
substantia y in the following form:
On the Second day of
TOWN OF LOS GATOS, Santa Clara County, 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 Barclays
Bank of California, 16100 Los Gatos Boulevard,
Los Gatos, California 95030, or at the office of
the Treasurer of said Town, as interest due on
IMPROVEMENT BONES, TOWN OF LOS GATOS, BONNIE LANE
ASSESSMENT DISTRICT, SERIES 83 -1, dated June 2, 1983,
(not for signature)
Treasurer
Town of Los Gatos
EXHIBIT "C"
(ii)
B
Coupon No.
No.
REGISTRA'T'ION 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 Treasurer.
Date of Name and Address Signature of
Registry of Registered Owner Treasurer
EXHIBIT "C"
(iii)