AgdaPkt 2003-11-03 - Laserfiche WebLink

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Security for the Bonds. The Bonds are special limited obligations of the Authority, payable solely from and secured by Revenues (as defined herein) of the Authority, consisting primarily of payments (the "Lease Payments ") received by the Authority from the City of Redwood City (t`re "City") for the right to the use of certain real property and improvements thereor, (the "Leas, -i Property") pursuant to a Subordinate Lease Agreement dated November 1, 2003 (`he "Lease Agreement "), by and between the City, as lessee, and the Authority as lessor. Timely payments of the Lease Payments are calculated to be sufficient to pay the principal of, premium, if any, and interest on the Bonds when due. Lease Payments. In the Lease Agreement, the City covenants to take such action as may be necessary to include all Lease Payments and all estimated Additional Payments due thereunder in each of its final approved budgets of the City, and to make the necessary appropriations for all such Lease Payments and Additional Payments coming due and payable during the period covered by each such budget. The City also has an obligation to make lease payments for the right to the use of the Leased Property under a lease agreement entered into In connection with bonds issued in 1998. See "THE FINANCING PLAN." THE OBLIGATION OF THE CITY TO MAKE THE LEASE PAYMENTS DOES NOT CONSTITUTE A DEBT OF THE CITY OR THE STATE OF CALIFORNIA (THE "STATE ") OR OF ANY POLITICAL SUBDIVISION THEREOF WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY DEBT LIMIT OR RESTRICTION, AND DOES NOT CONSTITUTE AN OBLIGATION FOR WHICH THE CITY OR THE STATE IS OBLIGATED TO LEVY OR PLEDGE ANY FORM OF TAXATION OR FOR WHICH THE CITY OR THE STATE HAS LEVIED OR PLEDGED ANY FORM OF TAXATION. Bond Insurance. Concurrently with execution and delivery of the Bonds, (" " or the "Bond Insurer ") will issue its Municipal Bond Insurance Policy (the "Policy ") for the Bonds. The Policy unconditionally guarantees the payment of that portion of the principal of and interest with respect to the Bonds which has become due for payment, but which is unpaid. See "SECURITY FOR THE BONDS - Payments Pursuant to Municipal Bond Insurance Policy" and "APPENDIX F - Specimen Municipal Bond Insurance Policy". Risk Factors. Investment in the Bonds have certain risks arising from circumstances which could have an adverse impact on the ability of the City to pay the Lease Payments. See "RISK FACTORS" herein. Miscellaneous. There follows in this Official Statement, which includes the cover page and Appendices hereto, a brief description of the Bonds, the City, the Indenture, the Lease Agreement and other documents, risk factors and certain other information relevant to the issuance of the Bonds. All references herein to the Indenture, Lease Agreement and other documents, agreements and statutes referred to herein, and the description of the Bonds included in this Official Statement, do not purport to be comprehensive or definitive, and such summaries, references and descriptions are qualified in their entirety by reference to each such document or statute. A summary of certain provisions of the Indenture and Lease Agreement Is included in APPENDIX A. The most recently completed audited financial statement of the City is included in APPENDIX B and certain unaudited data is included under the caption "CITY FINANCES ". The information set forth herein and in the Appendices hereto has been furnished by the City and includes information which has been obtained from other sources which are believed to be reliable but is not guaranteed as to accuracy or completeness and is not to be construed as a representation by the Underwriter. All capitalized terms used in this Official Statement (unless otherwise defined herein) which are defined in the Indenture or the Lease Agreement shall have the meanings set forth therein, some of which are summarized in "APPENDIX A - Summary of Principal Legal Documents." -2-