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AgdaPkt 2003-07-28
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AgdaPkt 2003-07-28
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Last modified
6/2/2011 2:34:19 PM
Creation date
7/24/2003 1:52:17 PM
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Template:
CC Index
CC Index - Document Type
Agenda Packet
Agency Type
City Council
Date
7/28/2003
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OA-45 <br />Table 5 <br />District No. 99-1 <br />of the City of Redwood City <br />I to come] <br />Source: California Munidpat Statistim Inc. <br />BONDOWNERT RISKS <br />The purchase of the Bonds described herein involves a degree of risk that may not be <br />appropriate for some investors. The following includes a discussion of some of the risks which should <br />be considered prior to making an investment decision <br />Possible Claims Upon the Value of Taxable Parcels <br />While the Special Taxes are secured by the Taxable Parcels, the security only extends to the <br />value of such Taxable Parcels that is not subject to priority and parity liens and similar claims. <br />The table in the section entitled "REDWOOD SHORES COh0AUNITY FACILITIES DISTRICT <br />NO. 99 -1 - Direct and Overlapping Governmental Obligations" states the outstanding amount of <br />governmental obligations (with stated exclusions), the tax or assessment for which is or may become an <br />obligation of one or more of the Taxable Parcels, and states the additional amount of general obligation <br />Bonds the tax for which, if and when issued, may become an obligation of one or more of the Taxable <br />Parcels. The table does not specifically identify which of the governmental obligations are actually <br />secured by liens on one or more of the Taxable Parcels. <br />In addition, other governmental obligations may be authorized and undertaken or issued in the <br />future, the tax, assessment or charge for which may become an obligation of one or more of the Taxable <br />Parcels and may be secured by alien on a parity with the lien of the Special Tax securing the Bonds. <br />In general, as long as the Special Tax is collected on the County tax roll, the Special Tax and all <br />other taxes, assessments and charges also collected on the tax roll are on a parity, that is, are of equal <br />priority. Questions of priority become significant when collection of one or more of the taxes, <br />assessments or charges is sought by some other procedure, such as foreclosure and sale. In the event of <br />proceedings to foreclose for delinquency of Special Taxes securing the Bonds, the Special Tax will be <br />-28- <br />
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