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remedies of bondholders, duties of the trustee, bond redemption provisions and miscellaneous <br />other provisions relating to the 2024 Bonds and the security therefore. <br /> <br />Continuing Disclosure Certificate <br />The SEC does not have the authority to regulate municipal bond issuers. It can, however, regulate <br />bond underwriters. The official statement provides comprehensive disclosure to investors at the <br />time bonds are initially sold. In the interest of requiring more up-to-date information to be provided <br />to investors while bonds are outstanding, the SEC also requires bond underwriters to ensure that <br />issuers of municipal bonds that the underwriters purchase are obligated by a written undertaking <br />to provide continuing disclosure of specific listed events when they occur and key credit <br />information on an annual basis. In this case, the City will execute a continuing disclosure <br />certificate. The continuing disclosure certificate requires the City to annually collect and <br />disseminate to the Municipal Securities Rulemaking Board’s (“MSRB”) Electronic Municipal <br />Market Access (“EMMA”) system audited financial statements of the City, information regarding <br />the sources and amount of the supply of water to the City and the corresponding use, by source, <br />for water acquired by the City, information regarding bonds outstanding and debt service <br />coverage, and the occurrence of certain significant events (all of which are listed) relating to the <br />security provided to investors. <br /> <br />Preliminary Official Statement <br />The preliminary official statement is the primary disclosure document provided to investors in <br />connection with the 2024 Bonds. It discloses material information regarding the City, the water <br />system enterprise and the Authority, the authority for and purpose of the 2024 Bonds, and the <br />security for the payment of interest on and the repayment of the principal of the 2024 Bonds, the <br />terms of the 2024 Bonds and the redemption provisions therefore, debt service on the 2024 Bonds <br />and material risk factors relating to the City’s ability to make installment purchase payments and <br />the Authority’s collection of these payments, as well as material risk factors relating to the security <br />for the 2024 Bonds in general, and other miscellaneous matters. <br /> <br />Bond Purchase Agreement <br />This is the contract among the City, the Authority and the underwriter specifying the interest rates <br />and reoffering yields on the 2024 Bonds and the price the underwriter will pay to the Authority for <br />the purchase of the 2024 Bonds. Because there is a time interval of 2 to 3 weeks between the <br />execution of the contract and the closing (the delivery of the 2024 Bonds and the payment of <br />money), it also specifies various conditions on which the offer to purchase the 2024 Bonds is <br />contingent. These conditions include various legal opinions from the City’s legal counsel, bond <br />counsel, and disclosure counsel, various certificates to be delivered by City and Authority officials, <br />various documents to be executed by parties to the financing, various actions to have been taken <br />by the City and the Authority, and other conditions designed to assure the underwriter that all <br />actions necessary to the lawful delivery of the 2024 Bonds have been taken and that all disclosure <br />is complete, not misleading and true. <br /> <br />Escrow Deposit and Trust Agreement <br />The City and the Authority will enter into the Escrow Deposit and Trust Agreement with the trustee <br />for the 2013 Bonds to document the mechanics of placing money and federal securities in a trust <br />account with the trustee for the 2013 Bonds to discharge and redeem the 2013 Bonds and the <br />related City installment payments. <br /> <br />8.A. - Page 8 of 255 <br />636