Res85 9902 - Laserfiche WebLink

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PAYMENT: Said Notes and the interest thereon are payable in lawful money of the United States of America at the office of the City Treasurer. FORM OF NOTES: The Notes will be issued in bearer form. REDEMPTION: The Notes are not subject to call or redemption prior to maturity. PURPOSE OF ISSUE: The proceeds of the Notes wi 11 be used for current general obligation expenditures, including current expenses, capital expenditures, and the discharge of any obligation of indebtedness of the City. SECURITY: The Notes are issued pursuant to Section 66 of the City's Charter and Article 7.6, Chapter 4, Part 1, Division 2, Title 5 (commencing with Section 53850 of the Government Code of the State of Cal ifornia). The Notes, in accordance with California law, are general obligations of the City but are payable only out of the taxes, income, revenue, cash receipts and other moneys of the City attributable to the fiscal year 1985/1986 and legally available for payment thereof. The Notes are secured by the City's pledge of (a) the first $2,600,000 of unrestricted moneys to be received in December, 1985 and (b) the first $2,000,000, together with any additional amount required to pay the interest on the Notes, of unrestricted moneys to be received in April, 1986, as security for the Notes and the interest thereon. The Resolution authorizing the issuance of the Notes requires said pledged moneys to be transferred to a special fund until June 30, 1986, at which time said pledged moneys will be used to repay the Notes. TERMS OF SALE INTEREST RATE: The maximum rate may not exceed that rate of interest equal to the sum of: (i) the average of the rates of interest per annum paid to the City on investments of general municipal funds during the three (3) months next preceding the proposed date of issuance of the notes; plus (ii) four (4) per cent per annum, payable at maturity. Each rate bid must be a multiple of 1/100. No Note shall bear more than one interest rate. Bidders may submit more than one bid. Each Note must bear interest at the rate specified in the bid from its date of issuance to its fixed maturity date. AWARD: Bi ds may be for all or any part of the Notes. The Notes wi 11 be awarded on the basis of the lowest net interest cost. The interest cost of each bi d wi 11 be determi ned by deducti ng the amount of premi um speci fi ed (if any) from the total amount of interest which the City would be required to pay from the date of the Notes to their maturity date at the interest rate or rates specified in the bid. No bid for less than $100,000 principal amount of Notes or for 1 ess than the par value thereof wi 11 be entertained. The Ci ty Council reserves the right to award to any bidder all or any part of the Notes which such bidder offers to purchase in his proposal, upon the basis of his proposal. If only a part of the Notes bid for in a proposal is awarded by the City Council, any premium specified in such proposal shall be prorated. In -2-