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'=P It It S 0 1 , :' 1 0 X . RESOLUTION O THE CITY COUNCIL OF THE =T OF REDLANDS AUTHORIZING THE CREATION OF AN ISSUE OF NOT EXCESDINNG 2AX334GRE- GATE PRINCIPAL AMOUNT NOF CITY REDLAND CERTIFICATES, ISSUE 1962, AND PROVIDING THE TERMS AND CONDITIONS FOR THE ISSUANCE THERE OFA 'WHEREAS, the City Council of he City .; Redlands is author- ized by Chapter 2070, Statutes of 1959, o issue certificates to pro- videfunds to acquirereal property and construct city buildings and WHEREAS, she City Council of the 'it of Redlands has deter- mined -mimed d hereby dues determine aha :. it desires to adopt a Resolution creating an issue not exceeding �; � ..=.x, �.,, aggregate s principal mount of certificates fc the purpose of providing funds to construct a city office building in the City of Redlands, State of California, and setting forth the kerma and conditions under .i h such certifi- cates er .i -cater are to beissued; THEREFORE, BE `T RESOLVED by the City Council of the City of Redlands, as follawsg ARTICLE DEFINITIONS AND STATUTORY AUTHORITY Section 1 .01 pAlefflinjittli2orn-is The terms in thissection defined, for all purposes of this Resolution, and any Resolution supplemental hereto, have the meanings herein specified unless the context otherwise is :qu ir "Board" means the City of the City ;ands. (b) "Trustee" means the City Treasurer of the City of Redlands. K` fly... ws "Holder" or »" a ofis ateh"; er" or "Holder oRecord''` mens the owner of record of any certificate as de- termined -t m i n from the ;records Of the Trustee- (d) om;u t ^a,. "Auditor" means theCity Auditor of the pit of Red- lands. "Cost of a PublicBuilding" means and includes, but is not limited to, the cost of all real property, rights, and easements acquired,yred t he cot of construc- tionpublic buildings including of six months after construction, engineering, archi-. t, t " ., and g pen including the cost of plains', specifications,r and surveys, estimates O 6 Ost and revenues, administrative expensea, and such other expenses as are necessary or incident c idem to the financinq of public buildings r to determinethe as i t or practicability of any public buildings, n the con- demnation o on-dem tics f � opert necessary for the use , or in connection with, any public building -, (f) "Costs of Operationand Maintenance" means the costs of insurance for the building, the administrative ex- penses f the Board, and the costs of all .tem s-, tomarily incurred for operation and maintenance City buildings of similarSize. 'Fund" meansthe Public u`..id.c ngs Construction Fund n the City ;r ear` "_Act" means Chapter 2070 of the Statutes of 1959, con- stituting onst t t ng Article 6 (commencing € t Section 5 800) of Chapter 4. Part 1, Division 2, Title 5, of the Govern-, ment Code of the State of California,, "Date of Completion" o 'e Cam ."e ».r.'""t Date" n the date, upon which the City Council Of the City of R lands accepts the pubUx building financed hereunder as completed, u U) "Principal Sum" with reference to additLanal or re- demption payments means the initial principal amount of a certificate at its date of jeaue Section 1 .02 AuthotAix This Resolution is adopted pursuant to the provisions of Chap- ter 2070, Statutes of 1959, constitutinq ArticleV5 (commencing at Section 53800) , Chapter 4, Part 1, Division 20 Title 5 of the Govern- ment Code of the State of California We :i called the "Act" I and in accordance with other applicable laws of the State of California. ARTICLE 11 TERMS OF CERTIFICATBS Section 2 .01 !0r t,I f iCa t,s 9 An issue of certificates is herebycreated and such certifi- cates shall be designated as the "City of Redlands Certificates, issue 1962" . The certificates are limited in the aggregate rineipal amount to not exceeding and further limited to the purpose of construction of a City building in the City of Redlands, California. Section 2.02 Z=X-Msof The Certificates authorized under this Resolution are to be issued to finance the cost of a public builOng in the city hereinabove set forth. The Certificates will be issued sub-fes.ct to the limitations con- tained in this Resolution at such time or times as may be necessary in order to obtain funds to cover the cost of said building. They shall bear interest at such rates as may be agreed upon between the Board and the purchasing agencies in the agreement or agreements entered into pursuant to the provisions of Section 3 ,01 %) of Article ill of this Resolution and shall be in such principal sums as the Board may from time to time direct when order ingtheir issuance pursuant to the pro- visions of Section 3 ,04 of Article Ill of this RssoiutionThe Certi- ficates shall be cons ec,utli.,ve ly nT,=be.,red in the order of their issue. -3- Each Certificate shall bear interest on its principal amount from the date of its issue at the interest rate applicable thereto, payable on T I and jUly I in each year to and including the second such interest paymentdate following the Date of Completion of said building or, at the option of the Board, to and including the first such interest payment date following the Date of Comple- tion of such Building; and thereafter on the first day of each month in each year to and including the first day of that month in which a twenty-five (25) year period, computed from the date of issue of the first Certificate relating to suchbuilding, ends, payments equal in amount and sufficient to amortize the principal sum of such Certi- ficate, together with interest thereon over the period of time thus established, shall be made. All payments on each Certificate shall be applied first to intyrest then due and ths remainder to principal, and interest shall cease on the principal sums thus paid, The option by which the Board may select the first interest payment date following the Date of Completion of said; building for the determination of the period over which the principal, together with interest thereon, shall be paid in equal monthly payments as above provided, shall be exercised by a resolution of the Board se- lecling such optional date for application tOall Certificates filed in the office of the Trustee not less than ten days prior to the op- tional date thus selected. The Trustee, upon receipt of such resolu- tion, shall forthwith notify each Holder of Certificates. Section 2.03 The Certificates and the AuthsnUcation of the Trustee to be endorsed thereon shall be in substantial1y the following formg CITY OF REDLANDS CERTIFICATE ISSUE 1962 No The City Council of the City of Redlands fheri�Unafter sometimes called the "Board" ) , by this certALcate issuc-.td th'is day of for the purpose of providing funds for the cost of a City building in the City of Redlands, State of California, acknowledges A- self indebted in the SIM of, and for value rcsi edhereby p roln- ises to pay (but only gin° of certain funds hereinafter referred to and subject to the right, of pri&or reder tion hereinaft'er expressly Provided for the principal sum of dol Laixs t0g6ther with interest thereon payable ll s- Interest on, Said pritai:pal quir 'frc4r., the d f at the rate of each Year to and dnq, the second aucb intere4tPayment dat `following the date 0COMP16tlic;n of the aforesaid, building, , at the option of the Board t be exercised, s herednafter 6,xpressly -firstprovided, to -and in luding the st lowing the Date 'Of 'Completi011 of the aforesaid buildlLng r, a nd there- after, on the first day of ' eAch mxlmth in eachye-ar to and including (the firm, day Of k a , nreconth five year, period, computed from, the date o ue of, the first Certificate relating the O ,1_, .� n , endspa tents qual in amount and , en alz � p tc h� 4iam , 11 1 interest the ' ver sa'd temt hereon shall 'b firsttO interest, �t � d phos, e i prim rest sh 11cease Oyl theici p ills paid. Theopti �� ore p� d ,' by wit "h e ad may select the first interest payment da ;e lli ,hDate. Of OMPl ion of the aforesaid building for t1he detezrrwzLnatiohe, which the prircipal hereof, t0getheiz withnteresK eorn be p. id in equal monthly payments e pr db-a ,, if exercised, be Placable tO all C ca & and sball 'be- exercised bY reso I lution the Board selectIng sakd Optional date, filen ;fie offj ce of the TreAsurer of the City f Reed -wide hr i r �. 't- � � dhe "Trustee"J , not fess than teln daYsprior to the sRid OP' Ion da e. s The Trustee, upon receipt of said Resalution, ahall forthwith notify each Holder of Certificates,, Additional or redemption paymenta may he made on the princi- pal sum of this Certificate in any amount on any payment date on or after amortization hereof has commenced (but only cut of funds avail- able therefor under the terms of the Resolution) upon notice as pro- vided in the Resolution of not lese than thirty days prior to such payment date, at the princip&! amzunt thereof plus a premium of 5% of additional or redemption payment amount during the first four- year period in which such payments may be madt, a premium of TX of such additional or redemption payment amount during the second four- year period in which such payments may be made, a premium of 3% of such additional or redemption payment omount during the third year period in which sucb paynwnts may be na premium of 2% of such additional or redemption payment amount during the fourth four- year period in which such payments may be made, and thereafter with- out premium, provided, however, that the tota! amount of any money applied as such additional or redemption paynants On any Certificates of this issue (including said redemption premium) shall be applied proportionately to each Certifizate of the Issue in the same propor- tion that the principal sum thereof bears to the aggregate of the principal sums of all such Certificates. Additional or redemption payments thus made (excluding redsmp ,., - fC,,-,rt shall he applied to the unpaid principal amount of such Certificates and shall ac- cordingly advance the maturity dates of the succeeding equal nonthly payments thereafter to be made without affecting the ancont of such equal payments, except that any ad"ustment in the amsunt of equal payments made necessary by, reason of auch additLonal or re- demption payments shall be made on the KnAl payment date. Both principal of and interest on this Certificate, as well as any redemption premium thereon K applicable, are payable at the office of the Trustee, Payments hereon shall W mads to the Holder of Record and may be made by any procedure provided by j&w. The Sold- er of this Certificate shall designate to the us writing the funds and the account or accountsthereof to wtich suchpay- ments made. , record of the payments made bereon shall.. be kept by the Trustncrda��c with the provisions off. the Resolution. This Certificate is one of an issue of City of Redlands, california, Certificates, Issue 1962 (hereinafter a l ethe "Cer- tificates")") issued by theoa ll of theCertificates of said issues which this Certificate is onO are issuedand to be is- sued pursuant to the authority of Chapter 2070, Statutes of 1959 called the "Act" d pursuant to Resolution of the Board W authorizingthe creation of an issue of not exceeding aggregate principal amount of Certificates to be issued- such time or times as funds are needed,,, for the purpose of financingcost of a City building., copy of the Resolution is on file ,a ;the office of the Board and at the office of the Trustee, both of which offices are at Redlands, 1 ii a, and reference is hereby made to the "Act'' and .the Resolution and to all resolutions or other donuments sup- plementary amendatory thereof (copies of which the Board has agreed to file in the saes ._ ceall , fora full and complete state- ment the proOsions, among others, t spe .o the applica- tion and custody of the proceeds f the WrUficates, the collec- tion and dispositionof the revenues, rentals and receipts h Board, the nature and extent of the security and therights Holders of the Certificates +; spec hereto,; the terms and con- ditionson which the Certificates are or may e issued, and the rights, duties and dbligations of the hoard and the Trustee, l of which the Holder hereof, by acceptance of this Certificate, as- cams . trans- ferable local aqencies andagencies having Jurisdiction -7-, i over special or trust funds, Transfer ht af may be made in or d- ante with the lames of the State of Californiagoverning r of non-negotiablet ` ent s. No transferor sale of this Certifi- cate rtiii-tate shall be valid, i t the Board, unt the an r or sale hereof shall be entered upon the record of the Trustee in accord- ance with the provisions of the Resolution-, This Certificate does not pledge the .redit. or taxing power of the City of Redlands and does not constitute an indebtedness the City Council or of the Citwithin the meaning constitu- tional This Certificate is an obligation of the Board, but all of the Certificates issued and to be issuedunder the authority the Resolution are payable solely from o rid secured solely by the revenues, rentals .pt of the Board derived v from the operation of the Building to be constructedwith th f �eed the Cantil: This Certificate and all of the Certificates of this issue, regard- less egar. of the date u and delivery, and without priority for one over the other, shall be secured by a first,t, direct and exclusive Lien or chargethe said revenues, rentals and receipts (including the proportionate part of all fends and securities r tate whole or in part therefrom and including all income, interest car' profits therefrom) after deducting, the goat of operation and mAntenance such building and such revenues, rentals and receipts rfledged to the payment the principal of and interest an the said Certi- ficates, l as provided in the Resolution. The rights and obligations of the Board and of the l > of the Certificates ,may be modifiedt. m .a ded at any time in the manner, to the extent and upon the t.e sro_, ided' in the e t . It is h t by certified, recited and declared that all acts, conditions and things required t exist,, `t ppe d to he performed, precedent to and in the issuance of this es ti is ;t i st, have happened n and have been performed in due time, form and manner as re.- quiredby the Constitution n t to s of thetate of California, ;x and that the amount of this Certificate, tofher with all other Certificates of this issue, does not exceed any limit prescribed by the Constitution or statutes ofthe State of california, and is not in excess of the amount Of Certificates permitted to be issued under the Act f Or the cost of th+- building. This Certificate shall not be entitled to any benefit under the Resolution or become effective for any purpose until this Certificate shall have been authenticated by the signature of the Treasurer of the City of Redlands as Trus ;et, in the space hereon provided for that purpose. IN WITNESS WHEREOF, the City Council of the City of Redlands has caused this Certificate tobe exacuted on its behalf with the facsimile signature of the Mayor, the facknile counter- signature of the City Clelk, and endorsed by the Treasurer of the City of Redlands inloffice on the date of issuance hereof, and, the Seal of the City of Redlands to be hereto affixed. COUNTERS 1GYRIB' ' ENDORSED B" Treasurer of the City of Redlands, State of Californi, Authenticationg The undersigned hereby certifies that this Certificate is one of the Certifizates described in and issued under the within-mentioned Resolution,, Trelaurer Of the City of Redlands, StOte Of CaliforKs, as Truatee sect i on 2.04Bx�cuti+�x� � certificates r All 0'f the certificates shall be executed on behalf of the Hoard, with the facsi ile' signature ofthe Mayor, facsimile ecru _ tersignature of the City clerk, and endorsed by the Treasurer of the pity Of Redlands, State Of California, either by original sig- nature cr by signature stamp, and shall bear an impress of the Seal of the City of Redlands- The Certificates sham,, be signed, countersigned, and endars+�d b the off ,cern whc shall be in office n the date of each Certificate, Section 2.05 Autasnt ca n No Certificate Certificates shill be issued or shallbe valid for purpose car entitled to any security or benefit under this Resolu- tion unless such Certificate halbe authenticated by the signa- ture of they trustees in the space provided for that purpose cn each Certificates as hereinabove set forth. Such authentication by the Trustee upon any Certificate shall be conclusive that the Certifi- cate so authenticated, has been dull issued under this Resolution, and is valid and entitled to the security and benefit hereof as against the Board and, all other Certifiatehclders Section 2.06 Pa snt end P& �kcc� ds ,The principal of and interest on the Certificates, as well as any redemption premium thereon if applicablt, are ;payable at the : office of the Trustee. The Trustee shall makapayment b an cedure provided by lam for a y pro p yaws nts between Stats and ,.Orad agencies or funds, to the Board may direct. The Holder of each Certificate ''issued-hereunder, ehall designa a to the Trustee, in meriting, the fund11 and the account car accounts thereof, to w°h,i h such payments shall be madePayments on each Cert,ifhall be recorded by the Trustee in his records kept pursuant toArticle of this Resolution and shall be`suds to the Holder of card. Of such Cek- tifica,te On such payment date. -10- Section . p t,L �� �� Additioval or redemption payments mai be made on the principal sum of each Certificate of this issue in y amount on any payment date forsuch Certificate after the amortiza- tion od of such Certificate shall av ,m om wed but oniy out of funds available for such purpose under the provisions of this R upon notice and in the mannerd} Article IV of this at the principal amount �„ � such ✓ k' � Batu v.,W'�,.� payment � ,+RiJ. Prem f % of sych 'dditiona , cr redemption y"ent amount during the firstfour-year period in vtich such paymonts may be made on such Certificate, a premium of of u e additional oral o, redemptionpayment amount t du ng the second four-year period i which such payments may be made on such Ce t ticate a premium such additional or redemption paymznt amountduring thud four-year period in which such payments may be made on such Certificate, a premium % of such Oddi on or redsmption payment amount during the faurtb four-year paymentsmay be made, and thereafter w.a hoot premium, rovide however, that the total amountof any moneyapplied as such addi- tionalor redemption payments (including said redemption premium) shall be applied proportionately proportion that the principal sum thereof bears .y the aggregate of the principal sum of all such Certificates, A " t , redemption payments thusmad (excluding din rsdemptiorg ,y shall be applied two the unpaidr i 4 . .! amount of such Certifi- cates er fi-cater and shall accordinglyadvance the maturity datedatee of the succeeding equal n° y payments ther ,,s,tsr ta be >m=tele without affecting the amount of suchequal pxynents, except that any adjustment in the amountof such equal " ,y �L,.nts made necessary =.�r by reason f such additional o redemption payments �� a�:l be made on the final payment date. providedAs y the Act, all Certificatesissued m,rsuan s tO this Resolution are not ego ab ns rm t but ar6 transferable ?X Y between local and StMeagencies having jurisdiction over special or trust funds. Transfer may be made incc ordan with the laws Stateof the o California governing the transfer nosem negatiabl instruments . Section 2 .09 The Trustee shall enter the rums of the genc to which each Certificate is issued in his records kept pursuant to the provisions f Article V ,l , oda this Res,l t ion No transfer o seas of a certificatehll be valid, as gain :t the Board, until the transfer or sale thereof hal e entered upon the records of the Trustee. The transferee shall present the Certificate duly assigned by the Holder of Record or a writteninstrument of transfer duly executed in the n&me of the Holder of Recordand the Certificate thus transferred, to the Trustee, and the Trustee shall thereupon make appropriate ies in his records d notationof each transfer on the t :, Section2 ,10 } ", ,A�, The Holder of any Certificate may at any time exchange such Certificate, the office off the Trustee, for new ;rtif c ,e such lesser principal sums as the Holder may desire, provided that no such new Certificate shall be issued for a principal sum of less than $1,000.00. The aqgregate of the principal sums of thenew certificates shall equal tht principal sum of the Certificate exchanged, the aggregate of the unpaid principal ba -ince f the new Certificates shall tyqual t1he unpaid principal balance of the Certificate exchanged, and d the principal u , and the unpaid prin- cipal propz',',.,z',- tion as the principal um and theunpaid principal i, „9a e of the Certificate rate of interest, date, of issue, and final equal a,:"ment dat ,,; the ,. ate exchanged. Each new certifinate shall also ear the same number as the Certificate xc with ppro r ia additional identification to identify such Certificates as beinq in replacement of a single Certificate of w . a `- The Trustee all make appropriate entries in his records of each such exchange and of the unpaid principal balance of each new Certificate on the date of its issuance under the provisions of this Section 2.10. ARTICLE III ISSUE AND AUTHENTICATION OF CERTIFICATES Section 3 .01 Condit (A) Agretment, f,.LjL Sadl Before any Cert cates hereunder are issued, the Board shall enter into an agreement or agreements providing for the sale at their face value of the ag- gregate principal amount of Certificates herein authorized to be issued. Each such agreement shall also provide the rate or rates of interest the Certificates shall bear, not exceeding six per cent ON per year and may also containsuch other provisions as the par- ties may agree upon. Such agreement shall be filed with the Trustee and shall be and become a part of this Resolution... W) coff coontracct in addition; to the agreement or agreements provided fat in subpara- graph (A) of this Section Y01, the Board shall have approved the plans for the building and shall have entered into a contract for construction of the building in accordance wlth ,.0pter 6, Part 2, Division 3, Title 4 of the Governzent Code before the Certificates relating to the financing of the cost of such building shall be issued. The Board shall file such approval and a copy of the con- tract with the Trustee and the purchasing agency concerned therewith, and it shall become a part of this Rea clution. Section 3 .02 Authentiqati,c�,n __! ---------- The Board may forthwith, or from time to t, use Che Cer- tificates authorized by this Resolution tc be signed, aealed and trans- mitted to the custody of the Trustee, and the Trustee shall authenti- cate and deliver the Certificates tothe purchasing agency nx agencies, subject to the provisions of this ArtiQ6 III, upon the written order of the Board from time to time so ordering, Section 3 .03 NCI—tli!Zlt-.-9f—"-";r±i!tl-al-l�t�lk-l�-4--I �Z"kU-�tII. Cl-elIrtl_if:ll,��I The Board shall, not less than twenty days prior to the date Certificates are Pram time to time to be ordered issued under the provisions of this Resolution, make and deliver to the Trustee and to such purchasing agencies as may be concerned therewith, notice of its intention to order the issuance of such Certificates. Each such notice shall set forth the following data for each Certificate which the notice concerns. (a) The name of the agency which has agreed to purchase the Certificate and to which the Certificate is to be de- livered. (b) The principal sum-of the Certificate. (c) The date of issue of the Certificate. (d) The name of the City in which the proceeds of the sale of the Certificate are to be used to finance the Cost of a Public Building,, (e) The date on which the final equal montbly payment thereon will be made. (f) The number the Certificate is to bear Section 3 .04 1he Bq'ar The Trustee shall authenticate and deliver the Certificates specified in each such Notice of Intenti3n to Mazue Certificates only upon receipt of an order of the Board so directing. Each such order shall also be sent to sach purchasing agency concerned there- with and shall set forth for each Certificate to be issued thereunder the data required by subsections (a) , (b) , (0 , (d) o (e) , and Q) of Section 3 .03 of this Article and the rate of interest eacb such Cer- tificate is to bear. The Trustee, upon receipt from each agency to whicb a Corti- cate is to be issued, of a warrant in the amount of the principal sum -14- of such Certificate payable to the Board, shall make entries upon his records as required by Article V111 of this Resolution and shall thereupon authenticate and deliver on the issuance data set forth in the said order, such Certificate to the agency entitled thereto. Section 3 .05 Pgp_oqit JZY TTustfue All warrants received by the Trustee on behalf of the Board in payment for the Certificates to be issued and delivered in accord- ance with the provisions of this Article III shall be deposited by the said Trustee to the credit of the Board in the proper subaccount of the Construction Account, Issue 1962, of the Fund, as provided in Section 6.02 of Article V! of this Resolution, on the date such Cer- tificates are issued. The Trustee shall secure a receipt from the Holder upon issuance of each such Certificate and shall maintain a file of such receipts ARTICLE IV REDEMPTION, PRIOR TO MIAT17-RITY Section 4.01 A�jedgemMpQ2 All of the Certificates of this issue are subject to addi- tional or redemption payments being made thereon upon the terms set forth in Section 2 .07 of Article 11 of this Resolution and in this Article IV,, Section 4.02 Whenever an additional or redemption payment is to be made upon any of the Certificates of this issue, the Board shall cause notice of such payment to be given to the Holder of each Certificate upon which such payment will be made, and to the Trustee, at least thirty days prior to the date of such payment. Such notice shall. la, specify the payment date upon which such additional or rVemption ""o payment is to be made, the aggregate amount of mnney to be applied to such payment and the aggregate amount of the redemption premian to be paid on such payment if applicable, and, as to each Certificate upon which such amount is to be applied, the number and the principal sum thereof and the portion ofthe aggregate amount of such payment to be applied to the principal thereof and to be paid as a redemption premium thereon if applicable. Section 4.03 Pgpglit of RQgMpjjyM 1 on or prior to the additional or redemption payment date specified in each such notice of redemption that ray be given, the Board shall deposit with or otherwise make available to the Trustee (but only out of moneys available hereunder for such purpose) , the funds necessary to make such payment. Section 4.04 Any money in the Sinking Fund Account, Issue 1962, of the, Fund in excess of the amount equal to one year's interest on all Certificates of this issue thenoutstanding may be applied to the purchase or redemption of such Certificates. If at any time the amount of said Sinking Pend Account shall exceed by $25,000 the amount equal to one year 's interest on all Certificates then outstanding as in this Section 4.04 provided, the amount in said Sinking Fund Account in excess of said interest re- serve requirement, shall be applied to additional or redemption pay- ments in accordance with the provisions of this Resolution. The amount equal to one year's intsrest on a Certificate outstanding on the date such additional or redemption pay mAnt is to be made shall be determined byapplying the per annum rate of inter- Ir est applicable to such Certificates on the date such payment is to be made, to the unpaid principal balance thereof. The unpaid prin- cipal balance of such Certificate is that amount of the prAcipal remaining unpaid after giving effect to the equal paymant thereon 21 that w1ll also be made on such payment to Section 4.05 Effect N, Wman notice of d mpt on his hese given, substantially a provided in Section 4.02 hereof: each Certificate ent w ,+gid under the notice of reE m tin to such additional or redemption payment and to redemption premi thereon if applicable, will become du and payable on the date fixed for such additional or redemption payment to the extent. the amount of such payment (including retd t n premium, if any) hal! applicable o each uc Car- tificate. ARTICLE V RENTALS AND OTHER CHARGES Section n 5.01 govenAnts ak to ; The Board covenants and agrees that so lang as any Certifi- cates rt icater of this issue remain outstanding < n n ,d the rentals charges to the City of Redlands for occupancy shall be at rates adequate to provide sufficient funds to cover the Costs p Opera- tion pera ,tion and Maintenance of the said building andthe amounts necessary to provide forthe retirement of all Certificates, including inter- est ;, -est thereon, issued under the provisions of this Resolution, d all such rentals and charges shall derive revenues n such amounts that the aggregate amount thereof shall. be .d , t e to meet the monetary requirements of this Resolution , ATTICLE V' ESTABLISHMENT OF ACCOUNTS AND USE AND DISPOSITION THEREOF Section 6 .01 Public ., ding 2nj w jRn FqQ There shall he maintained within the Public Buildings ding Con- struction n;.st ucti n Fund (established in the City of Redlands Treasury pur- suant to the Act) three separate c counts entitled as �ollcaw a Construction n ccount, Issue 19 Revenue Aco ntIssue 1962 cSinking Rand Account, Issue 196,E -17- The moneys in each such accaunt, slutll he expended in rd- ance with the provisions of this Article �,z!. Section 6.02 Construction Accoun Issue 1962 The proceeds from the sales of Certificates shall be depowlit_,ed in the Construction account, Issue 1962. The Board shall have authority to draw upon and expend moneys from the Construction Account, Issue 1962, and the mc,,nsys of such ac- count shall be used solely to pay the Cost of a Building to be financed under this Resolution. Interest payable on theCertificates relating to such public building during the period prior to the Date of Cr_,�mp .et jon thereof and for such further period as the Board may determine, of to ex- ceed six months, shall be made by the 111'rustee from the mnoneys of said Construction Account. The Board shall deposit with or otherwise make available to the Trustee, the moneys necessary to make such interest payments. Any moneys withdrawn from the Construe bon Account, Issue 1962, which thereafter may be refunded or otherwise returned to the Board shall be redeposited in the Fund to the credit of sqch Construc- tion Account. The unencumbered balance of any money's reamaining in Said Cor- struction Account one year after Date of Carrq pletion of' the bulilding financed hereunder shall on said date or at such earlier time as the, Board may direct, be transferred by th . Audittn', t-,, the Sinking Fund Account, Issue 1962 . Section 6.03 Revenue Acqoupt Issue 1962 All revenues, rentals and, re(;*ipts recniived 'by f,,:he 13q, rd from the operation of the public building f Jlnane,�d under prt�-,vi- sions of this Resolution, from Whate ver source derived, shall be transmitted by the Board at least once in every calendar- month to the City of Redlands Treasurer, and shall be deposi*�ted !"n the Fund to the credit of the Revenue Account, Issue 1,96 2,, The Board shall have aut'hority to d upo.-n- wnde,.xpend � s moneys from the. Ret anu Account, a s . 1901. ITY . w_ ng the Costs o Operation 4nd �dw, gun �s,,.,naro" (I the pobKo nan :ed pursuant tea 32 ro`>�isgons ofa InWoUps. fiscal year, except an amount equal to the takal of Qe =�, wy,k ited to said cun during the last two ,ar< n,.. months of vach, respective ` a year, sball, an the firAccount, Issue 1962, provided however, that We Bv&rd„ 4.. . fiscal year, be transferred hy hhe Auditor to tha GiNG, Van:! .s fiscal year, may from time to t-i-4mc, Reye a Account as it may determine oa of aqvuent needsor the costs of Operation and Maintenance building, transferred to the said Sinking Pand Aocanst, Section ,'Lnh, The Sinking Fend Account.wad ;fit issue xb„ egv m , Mall cvmlst of he moneys transferred from the constructiaL Account, Mae and the Revenue Account, issue 1962, in anvordanne with the prv-- visions of this Article V1. and any shall cause to be deposited therein, and thn moneys in sell SET, ing Fund Account are pledged to and charged with the payment principal or interest or both, as well as any applieghle radamptio',r�', premium in case additional or redemption paywants are nzU, an W,,,, Certificates issued hereunder. The Trustee aball have the sole ammHuy to Kwy apon an,! expend moneys$ from the said s.cq :""4,.A n. 2. , ; a and ted pal or interest or both on the Certificates become due and payable, except those paymmL. nN Kvswy6t yuj4LD, from moneye provided in accordance with 0, proulshwas of Snotio�' 6 .02 of this Article " ., The Trustee shall also make such adolhinval ot Won,wW-, payments (including redemption premium theywas Mn alTiloahle) v rom the moneys of the said Sinking VanS Account xs the board way s �s .19 L .ai t authorize and directpursuant to the provisions of Article IV of this Resolution. Section 4 05 InvestmenQ Nbtwithstanding any provisions of this Resolution to the contrary and subject to the obligations of the oar to the `o of the Certificates issued hereunder, the Board is autborized to invest and re-invest surplus moneys in any of the accounts in the Fund, in bonds or other obligationa of the United States,es, off;" those for which the full faithand credit f the United 'States are pledged r the nt of principal d interest, or of the State of Cali- fornia the several counties or municipalities or ether polit- ical -Kcal divi of the State of California, and to sell such bonds, or obligations, or any of them, upon direction f the Board. All securities or other investments mad6 undAr the provisions of this rt swell be heldthe City of Redlands Treasurer as custodian thereof. All interest received ort i t earnings derived from such investments small be collectedby the gty of Redlands Treasurer, and shall be depositedin the City of Redlands Treasury to the credit of the account n tart=: Fund from wbich such interest or other earnings were derived. Expenses incurred by the City of Redlands Treasurerin tak- ingand making delivery of bonds or other securities purchased as investments from: ch surplus money in the n may be paid from the Fund. ARTME V11 C a- T OF THE E sr"" All moneys belonging to or collected for the use of the Board under the proviaWns of this Resolution hai l be held in trust and used only for the purposes authorized y and in accordance wit, the provisionsf this i, s l ut i n Ail Certificates of this u 20 gardless of the date of Asue and Wivery, and without priority for one over the other, shall be secured by a first, direct and exclusive lien or charge on the revenues, rentals, and receipts (including the proportionate part of all funds and securities created in whole or in part therefrom and including all income, interest or proUts there- from) after deduction of the Costs of Operation and Maintenance of such pAblic building, as provided in ArticM VI of this Resolutior" and such revenues, rentals, and receipts are hereby pledged to the payment of the principal of, and KtWest on sUd Certificatea in accordance with, the provisions of this Resolution. Section 7.02 99MIlIty of CertilIgIQ All Certificates issued hereunder all rank equally as to security, regardless of tb,* time or times of their issue and shall be entitled to no priority one over the other, with respect to any revenues, rentals and receipts pledged as security for or available for the payment there of, except as expreaslyprovided for therein or herein. Section 7.03 Punctual _E_'.0XYM'7.±V= The Board covenants that it will duly and punctually pay or cause to be paid the principal of and interest on all the Cer- tificates in strict conformity with the terms of such Certificates and of this Resolution, and that it will 61',,serve and perform all of the conditions, convenants and requirements of this Resolution and all resoluttons supplemental hereto and of the Cer- tificates issued hereunder. Section 7.04 �a The Board covenants that it wili not create or give, or per- mit the creation or giving of any mortgage, lien or pledge on the public building financed with the procceds of the Certificates is-, sued hereunder, or upon any r6venuee, rentals and receipts, or other funds pledged or held her eunder, , except; as security for all the Cer- tificates issued hereunder, and that it will not permit the sale of -21-- ' Public building financed hereunder 80 long as any of the Certificates remain outstanding. section 7.05 Ixastar + The Board convenasnts that from and after the date on which it shall have accepted the public building financed under the pro- visions of this Resolution, such public building shall thereafter, so long as any Certificates of this issue remain outstanding, be; insured with responsible insurers against the risks of direct loss €r damage caused by or resulting from fire, with extended coverage endcrs nt, tO the greatest amount obtainable,not, exceeding, the full ' insurable value of, such building, prolvided,, however that the Boatd. maY1frOm, tim0 to' t a reduce theextent of such coverage to "- Such lesser amounts-as will fully protect the 'Holders of all Cer� tificaates�. All insurance moneys received by the Board in they event of lass will be held by the, Board as security for the Certificates Of this issues, except, that such moneys pay be disbursed from time to time by the Board for the repair or recon structionof such public building, And the Board, will, unless it effects, the retirement Of all. Cert fi Caates p proceed with due d .lid nce to a fectrepairs' or reconstruction from the said insurance moneys, and any balancer will he deposited t® the credit of the Sinking FundAcccaunt, Issue 1962. The pc icy or Policies6f insurance secuted by the Board 'pursuant tri the provisions .of this Section 7" 05 ah.all be availa- ble vsils-b e at any time for inspection by anyInt6reated' Certif ics.teholder. Section, 7.06 Financial Btst��� Within one hundred twenty days after the close of ea ch fiscal. year aso lone asany of the Certificates issued hereunder ,,remain outstanding, the Board will prepare and file with the Trustee and furnish to any Holder who may request the same s detailed finaanciasl statement showing the receipt use and dis position during the preceding fiscal year of, all moneys, in the accounts of the Fund pertaining to this Resolution, certified to in writing by a certified public accountann, Section 7.07 The Board covenants and agrees that construction of the pub- lic building to be financed under this Resolution will be under con- tract entered into and in compliance with Chapter 6, Part 2, Divi- sion 3, Title 4, of the Government Code and used by a bond for faithful performance of thecontract and that prior to acceptance of the building, a statement certified to by a licensed architect that work has been completed in ccnpliance with its terms will be obtained and filed in the office of the Trustee. Section 7.08 Further Assuran.M The Board covenants that it will make or adopt and execute, or cause to be made, adopted and executed, any and all such further resolutions, acts, deeds, conveyances, assignments or assurances as may be reasonably required for effectuating the intention of this Resolution, and for the better assuring and confirming unto the Holders of the Certificates the rights and benefits provided in this Resolution. ARTICLE V111 THE TRUST012-1, Treasurer i, Section 8.01 Redlands Under the provisions of the Act, the Treasurer of the City of Redlands shall act as Trustee under this Resolution on be- half of the Board and the Holders of the Certificates issued here- under, and is hereby authorized and directed to perform and dis- charge thy powers, duties and of the Trustee pro- vided for in this Resolution. Section FRecords (A) The Trustee shall keep and maintain the following records as to each Certificate issued hereunder, -23r:. (1) The name of the City with which related and the number thereoK, (2) The date of issue and the name of the agency to which issued ., (3) The principal skum and the rates of int6rest ay- plicable, thereto,, (4) The payments of principal or interest or both, and of redemption premium when applicable, made thereon. (5) in the event of transfer, in addition to the above-. (a) The name of the agency to which suchCertificate is transferred and the date of such transfer. Q Theunpaid principal balance of such Certificate on the date of such transfer. (B) The Trustee may in addition keep any records he deems to be necessary ordesirable in the discharge of his duties under this Resolution. ARTICLE 1X MODIFTCATION AND AMENDMENT OF THE RESOLUTION Section 9.01 This Resolution And any resoinion amendatory or supple- mental hereto, may be modified or amended at any time by a resolu- tion supplemental hereto, adapted by the Board with the written con- sent of the Holders of Record of 75 per cent of the aggregate prin- ciPal amOunt of the Certiflcxtes W th!R issue then outstanding, to make a part hereof anyprovivfru on that may now or hereafter be author- ized and permitted by' law. The Board shall file wtth the Trustee and submit to aac,h such Holder for its consent and approval, any such supplemental resolution. The consent and approval of 6sch Holder to such sup- plemental resolution shall be filed with the Trustee ind such resolution shall becum e effective the day faliawing the date on -24-- wbich the consent and approval of the Holders of 75 percent of the aggregate principal amount of such Certificamases thenoutstanding, has been filed. The Trustee shall thereupon notify each Holder and the Board of the adoption of the Supplemental resolution and of the effective date thereof, ARTICLE X REMEDIES Section 1001 ReIM11,49-1,11-1a The provisions of this Resolution and any resolutions sup- plemental hereof shall be a contract with each and every Holder of the Certificates issued hereunder, and each such Holder shall, in the event of default, have the rights and remedies conferred upon and granted to such Certificateholders under the provisions of the Act as it now provides,, Section 10.02 Default If and whenever there shall be a failure on the part of the Board or any of the officers, agents, or employees thereof to- ob- serve or perform any undertaking, covenant, obligatich, condition or agreement contained in this Resolution or any certificate is- sued hereunder, or if there be A failure or refusal on the part of the Board or any of the officers, en or employees thereof to perform or comply with any duty or obligation Aposed by a law ap- plicable to this Resolution, any of such events is hereby declared to be a default. Section 10.03 Non-Waiver of R!'', tk_2f Enforcement No waiver by any Holder of a default hereunder shall affect any subsequent default or impair any rights or remsdies on said sAbsequent default. No delay or owission of any HOW to exercise any right or power shall impair any such right or power or be con- strued as a waiver of any such right or power, and every power and remedy hereby conferred may be exer,',c1.se-d fr?,�:zn, time to time and as _25- Men as ;y be deemed expedient by any Holder.e ARTICLE X MISCELLANEOUS Section 11.01 1AA1111ty Re'ven"lles _jA Board Limited to Revenue Notwithstanding anything in this Resolution contained, the Board shall not be required to advance any' ;moneys derived from the proceeds of taxes collected in the City of Redlandsor the use and benefit of the City or from any source of income other than the: revenues, rentals, and receipts derived from the operation of the public w financed need h .der for any of the purposesthis Resolution mentioh for the paymentof the or interest on the Certificates, or for Costs of Operation and. Main- tenance f the public building; provided, however, that the Board may, but shall not be required to, advance for any of the purposes hereof any funds of the Board which may be made available to it for such Wises and purposes., Section .02 Banefit of Resolution, t� o d t P, An shallNothing in this ution, expressed or impiiad, is intend- construed on on,, or give to, any person or otherlegal entity, other than the rti eget and the Holders of the Certificates outstanding,, rh r, remedy claim ", r stipu- lation hereof; and all the covenants, at ,pat. o promises and agreements in this Resclation contained by and on behalf cf thhe Board shall be forhe sole and exclusive benefit of theparties hereto, and of theHolder „ of th6 Certificates ous andi g Section 11 .03 Discharie of Res,", 11" If all of the payments on all of the outetanding Cartifi-, ` at s:.3 issued hereunder shall hav6 matured U,wJ'.i. i all o.d.,w t,'sy. ' out- standing Certificates have been duly called for redemption and the redemption date thereof shall eve arrived nif the Boardshall deposit with the Trustee, in trust, funds pursuant to this Resolu- tion sufficient to pay and available the merit of all amounts die on all Certificates, including principal, interest and redemp- tion pre c artimium if any, Mari,* at to election of the Board, evidenced by a notice in writing signed in the nxme of the Board by an officer thereof, and notwithstanding that any Certificateholders shall not have received payment, the pledge of the revenues, rentals rid re- ceiptsand other funds ovid ,d for in this Resclution, the obliga- tion the Board to payintarest onte t i to and all other obligationsthe Board undsr this Resolution shall cease and terminate except only the obligation of the Beard to pay or cause to bepaid to the Holders such c npaidrt :.t ic at , all sums due thereon to the said date of maturity or the said date d d ti The Trustee shish hold such funds for the eft of 'the Certifi- cateholders entitled thereto and shall not be obligatedanything in this Resolution contained to . to or pay interest such sums. Such notice shallfiled with the Trustee. Section 11$04 - Af If No member f the Board, or any ,,,.°"er, agynt or employee the City of Redlands, or any department, boari or agency thereof, shall be individually o personally liabie for the payment of the principal of or interest an the e t it i n t , but nothing herein contained shall relieve ny such officer, agent or employee from the performance of any official duty provided b low. Section 11.05 ;� da y Pursuant to Qe provisionsof the pct, the Board may by resolution,, provide for the issuance cf Refunding Certificates for thy purpose,, of refunding y certificates of the Board issued pur- suant ant t this Resolution arid then o t.stw din either y voluntary exchange with the Holders of outstanding t>.n°; r t fico ,tes or to t td funds to redeem and retire the outstanding pe;tificates, with ac- crued rued tee esti. and any redemption premium;miu aya t on any r ede ti : -27- , Yr. date. Refunding Certificates My be issued by the Board to refund Certificates 'Originally issued or to refund Certi ticatee Of the Board previously issued for refunding purPOses. Notide Of the is- suance nuance Of Refunding Certificates shall be given to the Holders sof outstanding certificates to be thereby rudeemed and to the trustee not less than 30 days 'prior to the date on which such Refunding Certificates are t© he issued. The provisions of Article} Xx Of . this 'Reaolution are not applicable to st resolution euthoraczing tie .ssuancea of Refunding Certifi.ctes pursuant to this 8ectiOn 11.05. Section 11:006 .�� A11 notices, demands or Other c icairns herein provided O be given which may he given to they Holders of 'Re'cord Of the, . dertificates , issuOd hereunder, shall be given and sent to esedh Holder at the principal effic Orf $uch i der All notices# demands or cher communications herein provided to be given Or which may he given tee the Board or to the Trustee, shall be addressed to the Board earl-to the Trustee, respectively, at the City Hall,' Redlands, californiaa Section 11.0 psrti al lnvelidity any ones Or more of the covenants Or sgre*ements, or pvr t3 Ons the eOfl, prOvidesd in this Resolution on thepart df the Board Or Oft Trustee to be Performed ,should he contrary to law, then such covenant +fir covesnants, such agreement, or agreements, or POr_� tions 'thereof, shall be null and acid andsh�►11 be e s eparable , from they remaining covenants car agreements, or :portions thereof and shall in no wayaffect the validity of this Resolution or of the Certificates islsu hereundor# but the' Certificateholders shall retain' all rights and benefits accord to them under the Act or any Other applicable provisions of law* ' Section 11..08 AWIMSE The heAdings cif' the several Articles or Sections of this - 8- Resolution are inserted for nooven iwce of reference only and shall not be held or construed in any manner to affect the scope, to limit or to qualify the meaning or intent of the provisions of this Resolu- tion. Section 11.09 Pa 'ica id Ce:Lt��if �t The Holder, wben each Certificate is fully paid, shall sur- render such Certificate to the Trustee for cancellation. The Trustee shall mark each such Certificate cancelled and shall make such position of cancelled Certificates as the Board may direct. THIS RESOLLMMON IS HEREBY Adop the City Council of City of Redlands, this 19W Approved as to form and legality By -29- ;VG KEWT AGREEMENT made and entered into this � 105 T p uby and between the City Council of the City of Redlandshereinafter c, .h - "Board" and the Board of Administration of the State Employees ! Retirement Sys- tem, hereinafter called "System.'' " N E S �2' WHEREAS, the Board by a Resolution daed has adopted plans and specificationsconstruction of a City Hall Annex building at Brookside Avenue and Eureka Streeti and WHEREAS, the Board by Resolution dated has authorized and created an issue of not exceeding principalaggregate amount of Building Certificates� Issue 1962, and provided the terms and conditionsfor the issuance thereof for the purpose of financing the construction of said building; and WHEREAS, the Board has offered to sell said Certificates authorized by said Resolution to System, and theJarties hereto desire to ginner into an agreement for the purchase yr said Certificates d establishing the of interestsaid Cer- tificates shall beam NOW, THEREPORE, IT S MUTUALLY AGREED by the parties hereto as follOWS2 . The Board agrees to sell and issue .o System and System agrees to acceptm the Board on the dates the Board from time to time orders their issuance, Building Certificates, 1962, upon- the terms and 6onditionsprovided n the Board's aforesaid Resolu- tion as dated in theaggregate principal amount o r as much—thereof as may be necessary to fi- nancethe cost of the public building to be constructed pursuant the ,plans andp ,on adopted by the Board in its aforesaid Resolution dated Z The per annum rate of interest each Certificate sh l bear shall be- e ed by averaging the daily highest per anniulm, 30- interest yield (compounded semiannually) on any issue of market- able United States Treasury Bonds with of 15 years or more from the date issue of each Cercif: s set forth the applicable Notice of Intention to issue Certificates, pro- vided for in said Resolution, during c the fast ten busi- ness d e� days on which seed United States Treasury Bonds are traded in the open , r. ending fivedays immediately prior o the dale on whichsuch Certificate is ordered in the order for issuance o be authenticatedand delivered the Trustee to the System and adding thereto WOW in computing the per annum in- terest a yield on the said marketable d States Treasury Bonds der the provisions of this paragraph, the per annum interest yield to maturity on the asked side of the market as set forth in the published, daily closing quotations the First Boston Corporation shall be useW The System shall calculate said in- terest rate promptly upon receiPt Of said Notice of Intention to issue Certificates a and inform Board thereof. In the event the adjusted average per annum interest yield on marketable United StatesTreasury Bonds established as above provided shall exceed the of 6.000000% per annum, each Certi- ficate to be issued on the date of issue prescribed in the said order for issuance shall bear interest at the per annum, rite of interest of 6 .00000%. is utualagreed that the Board will issue Certi- ficates only as thed for funds to meetcosts of i buildingarises and that the Wand will, priorcommencement of the issue of any Certificates relating to the costs of the pub- lic building to be financed pursuant to the provisions of said Resolu- tion, .e u-tion, furnish to System " b dule of Anticipated Monetary Needs" for such building. Such schedule shall set forth the best estimate of the dates on Nhich it will be necessary to issue the said Certi- ficates °i e and f the principal ariount of such Certificates to be is- sued on each of the said dates. It is furtheragreed that the Board shall from time i supplement the said °" ch dAof Anticipated .Monetary Needs" dor such building as more accuratees- timates t. are available. 4. It is mutually agreed that any engineering, architec- tural, legal expenses incurred b she System in negotiation o ` this crme t, will be paid by the Board and will be included in: the cost of the public building. further gr d. that this agreement shall become null and void and the System thereafter shall not be obligated to purchase said Certificates on December 31, 1962, if the Board has not prior to that date entered into legal contract for construc- tion ca s -t , of said building. 6. This Agreement, asprovided ire Section 3.01(A) of the said Resolution, shall be filed ith the Treasurer -of the City of Redlands, the Trustee under said Resolution; and shall he and be- come a part of said Resolution. IN WITNESS WHEREOF, the parties hereto have set thea.r hands the day, month, and year first above written. By BOARD M < fl ON OF THE STATE EMPLOYEES ' RETIREMENT SYSTEM B ,...w ,. .m...,, . a....f. President Approved a : to form and legality By �v -32-