AgdaPkt 2000-12-18 - Laserfiche WebLink

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/o- $� Attachment A Description of Principal Bond-Related Documents Fiscal Agent Agreement: This is the contract with the owners of the bonds. It specifies the terms and relevant features of the bonds (e.g., principal maturities, interest rates, redemption provisions, how payments are made, etc.); it establishes the funds and accounts to be maintained by the City and the fiscal agent; it establishes the pledge to repay the bonds and limits the security for the payment of interest on and principal of the bonds, it establishes certain covenants of the City (e.g., to pay interest and principal � timely, to keep property books and records, to comply with all local, s#ate and federal laws relating to the bonds, to provide continuing disclosure related to the bonds, etc.); it specifies how monies are to be invested and how interest earnings are to be applied; it establishes to duties of the fiscal agent; it specifies the conditions under which amendments to the fiscal agent agreement may be made; and it addresses other miscellaneous matters necessary for the sale of bonds and the administration of the bonds. Bond Purchase Contract: This is the contract between the City and the underwriter specifying the interest rates and reoffering yields on the bonds and the price the underwriter will pay to the City for the purchase of the bonds. Because there is a time interval of 2 to 3 weeks befinreen the execution of the contract and the closing (the delivery of bonds and the payment of money), it also specifies various conditions on which the offer to purchase the bonds is contingent. These conditions include various legal opinions from the City Attorney, bond counsel and disclosure counsel, various certificates to be delivered by City officials, various documents to be executed by parties to the financing, various actions to have been taken by the City and other conditions designed to assure the underwriter that all actions necessary to the lawful delivery of the bonds have been taken and that all disclosure is complete, not misleading and true. � Continuing Disclosure Certificate: The Federal Security and Exchange Commission (SEC) does not have the authority to regulate municipal bond issuers. It can, however, regulate bond underwriters. The official statement provides comprehensive disclosure to investors at the time bonds are initially sold. In the interest of requiring more up-to-date information to be provided to investors, the SEC also requires bond underwriters to provide continuing disclosure of material events and key credit information on all bond issues that they underwrite. To comply with this requirement, bond underwriters, as a condition to purchasing the bonds, require issuers to provide this information to the public on an annual basis. The continuing disclosure certificate requires the City to annual collect and disseminate to certain firms serving as national repositories, information regarding bonds outstanding and fund balances, assessed valuation of parcels securing the bonds, special tax delinquency rates and information regarding delinquent parcels, significant changes in land use entitlements relating to parcels securing the bonds, significant challenges to the development of the property comprising the project, building permits and certificates of occupancy issued for parcels in the District, copies of reports required to be filed by the District with the California Debt and Investment Advisory Commission, and the occurrence of certain significant events (all of which are listed in the certificate) relating to the security provided to investors. A-1