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<br />'ð"-! <br /> <br />Attachment A <br />Description of Principal Bond-Related Documents <br /> <br />Fiscal Agent Agreement: This is the contract with the owners of the bonds. It specifies <br />the terms and relevant features of the bonds (e.g., principal maturities, interest rates, <br />redemption provisions, how payments are made, etc,); it establishes the funds and <br />accounts to be maintained by the City and the fiscal agent; it establishes the pledge to <br />repay the bonds and limits the security for the payment of interest on and principal of the <br />bonds, it establishes certain covenants of the City (e.g., to pay interest and principal timely, <br />to keep property books and records, to comply with all local, state and federal laws relating <br />to the bonds, to provide continuing disclosure related to the bonds, etc.); it specifies how <br />monies are to be invested and how interest earnings are to be applied; it establishes to <br />duties of the fiscal agent; it specifies the conditions under which amendments to the fiscal <br />agent agreement may be made; and it addresses other miscellaneous matters necessary <br />for the sale of bonds and the administration of the bonds. <br /> <br />Acquisition and Funding Agreement: This is the contract between the developer and <br />the City relating to the developer's obligation to construct the public infrastructure and the <br />terms and conditions under which the City agrees to purchase those facilities (with the <br />proceeds of the bonds) from the developer. <br /> <br />Bond Purchase Contract: This is the contract between the City and the underwriter <br />specifying the interest rates and re-offering yields on the bonds and the price the <br />underwriter will pay to the City for the purchase of the bonds. Because there is a time <br />interval of 2 to 3 weeks between the execution of the contract and the closing (the delivery <br />of bonds and the payment of money), it also specifies various conditions on which the offer <br />to purchase the bonds is contingent. These conditions include various legal opinions from <br />the City Attorney, bond counsel, disclosure counsel and the developer's counsel, various <br />certificates to be delivered by City officials, various documents to be executed by parties <br />to the financing, various actions to have been taken by the City and other conditions <br />designed to assure the underwriter that all actions necessary to the lawful delivery of the <br />bonds have been taken and that all disclosure is complete, not misleading and true. <br /> <br />Continuing Disclosure Certificate - Issuer: The Securities and Exchange Commission <br />(SEC), an agency of the federal government, does not have the authority to regulate <br />municipal bond issuers. It can, however, regulate bond underwriters. The official <br />statement provides comprehensive disclosure to investors at the time bonds are initially <br />sold. In the interest of requiring more up-to-date information to be provided to investors, <br />the SEC also requires bond underwriters to provide continuing disclosure of material <br />events and key credit information on all bond issues that they underwrite. To comply with <br />this requirement, bond underwriters, as a condition to purchasing the bonds, require <br />issuers to provide this information to the public on an annual basis. The continuing <br />disclosure certificate requires the City to annual collect and disseminate to certain firms <br />serving as national repositories, information regarding bonds outstanding and fund <br />balances, assessed valuation of parcels securing the bonds, special tax delinquency rates <br /> <br />'-"-""'~"'T' <br />