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12/03/2012 infonnation contained in this Official Statement has been provided by the City on behalf of the District. Copies of the Fiscal .Agent Agreement and certain other documents referenced in this Official Statement are available for inspection at the office of, and (upon written request and payment to the City of a charge for copying, mailing and handling) are available for delivery from, the City's Director of Finance, 1017 Middlefield Road, Redwood City, California 94603. PLAN OF REFUNDING Redemption of prior Bonds The net proceeds of the sale of the Bonds, together with certain other funds held under the Fiscal Agent Agreement, dated as of February 1, 2001 pursuant to which the Prior Bonds were issued (as amended by the first Supplemental Fiscal Agent Agreement, dated as of August 1, 2003, the "Prior Fiscal Agent Agreement"), will be deposited in. an escrow account (the "Escrow Fund"). The Escrow Fund will be held by U.S. Bank National Association, in its capacity as escrow bank (the "Escrow Bank") and as the Prior Fiscal Agent, pursuant to Escrow Instructions among the City, the District and the Escrow Bank, dated for reference purposes as of January 1, 2013, and will be applied to legally defease all of the outstanding $10,315,000 principal amount of the Prior Bonds as of the date of delivery of the Bonds. Amounts in the Escrow Fund will be invested in certain Escrowed Securities (as defined in the Escrow Instructions), and will be sufficient to redeem the Prior Bonds on March 1, 2013, at a redemption price equal to the principal amount of the Prior Bonds to be redeemed plus accrued interest to the redemption date, without premium in the case of the Series 2001A Bonds and with a premium equal to one percent (1%) of the principal of the bonds to be redeemed in the case of the Series 2003B Bonds. Upon the deposit of funds with the Escrow Bank in the Escrow Fund and in accordance with the Escrow Instructions, the Prior Bonds will be legally defeased. and will no longer be entitled to the benefits of, or be secured by, the Prior Fiscal Agent Agreement or by any pledge of, or lien on, the Special Taxes levied in the District. Amounts deposited in the Escrow Fund are not in any way pledged to the payment of, or available to pay, the debt service on the Bonds. -5- 13 RESO. # 15237 MUFF # 505