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Res 01-072RESOLUTION NO. 01-072 A RESOLUTION OF THE CITY COUNCIL OF CITY OF POWAY, CALIFORNIA, AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF A BOND PURSUANT TO THE PROVISIONS OF THE IMPROVEMENT BOND ACT OF 1915 FOR ASSESSMENT DISTRICT NO. 2001-1 (OLD COACH ROAD WATERLINE PROJECT) AND APPROVING CERTAIN DOCUMENTS AND AUTHORIZING CERTAIN ACTIONS IN CONNECTION THEREWITH WHEREAS, this City Council has taken proceedings under the Municipal Improvement Act of 1913, Division 12 of the California Streets and Highways Code (the "Code"), for the formation of Assessment District No. 2001-1 (Old Coach Road Waterline Project) (the "Assessment District") and has confirmed an assessment, which assessment and a related diagram were recorded in the office of the City Engineer, acting as the Superintendent of Streets, and with the County Recorder of the County of San Diego; and WHEREAS, a notice of assessment, as prescribed in Section 3114 of the Code, has been recorded with the County Recorder of the County of San Diego, whereupon the assessment attached as a lien upon the property assessed within the Assessment District as provided in Section 3115 of the Code; and WHEREAS, said proceedings provide that bonds would be issued pursuant to the Improvement Bond Act of 1915, Division 10 of the Code (the "Act") to represent and be secured by the unpaid assessments on the parcels within the Assessment District; and WHEREAS, this City Council has determined that the assessments upon the security of which such bonds are to be issued is not to exceed $290,350.47; and WHEREAS, it is necessary and desirable that the City sell a single bond (the "Bond") to be issued to represent the unpaid assessments; and WHEREAS, pursuant to Section 53635 of the Government Code of the State of California, the City may invest in bonds of California local agencies, including bonds issued by the City; and WHEREAS, the City finds it necessary and desirable to purchase said Bond as an investment on the terms and conditions herein set forth; and WHEREAS, this City Council wishes to authorize the issuance of the Bond and the sale thereof to the City on the terms approved hereby; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as follows: DOCSOC\835003v 1~22468.0017 Resolution No. 01-072 Page 2 SECTION 1. Unpaid Assessments. The assessments now remaining unpaid, and the aggregate thereof, are as shown on the list of unpaid assessments on file in the office of the Treasurer of the City, acting as Superintendent of Streets, in the aggregate amount of $290,350.47. For a particular description of the lots or parcels of land bearing the respective assessment numbers upon which assessments remain unpaid, severally and respectively, reference is hereby made to the assessment and to the diagram recorded in the office of the Superintendent of Streets. SECTION 2. Issuance of Bond. A single bond shall be issued upon the security of said unpaid assessments in the aforesaid amount, in accordance with the provision of Division 10 of the Streets and Highways Code of the State of California and the proceedings thereunder duly had and taken, for the purpose of issuing the Bond. Said Bond shall be designated "United States of America, State of California, County of San Diego, City of Poway, Limited Obligation Improvement Bond, Assessment District No. 2001-1 (Old Coach Road Waterline Project)", and shall be a bond in the principal amount of $290,350.47 herein referred to as the "Bond") and shall be payable in installments of principal. The Bond shall mature on September 2, 2016. The Bond shall be in the form of a fully registered bond without coupons and shall be initially dated the delivery date. The Bond shall be substantially in the form set forth in Exhibit "A" hereto attached and by reference made a part hereof. SECTION 3. Interest. The Bond shall bear interest at the rate of 5.75% per annum, payable on March 2, 2002, and semiannually thereafter on September 2 and March 2 of each year. The Bond shall bear interest from the interest payment date next preceding the date of registration thereof unless: (i) it is registered as of an interest payment date, in which event it shall bear interest from such interest payment date, or (ii) it is registered on or prior to February 15, 2002, in which event it shall bear interest from the date thereof. Interest on the Bond shall be paid by the Treasurer of the City (the "Treasurer") by check mailed, or other form or method of payment acceptable to the registered owner, on the interest payment date to the registered owner of the Bond as the name and address appear on the register kept by the Treasurer at the close of business on the fifteenth (15th) day of the month preceding the interest payment date. The Bond shall continue to bear interest after maturity at the rate stated therein, provided it is presented at maturity and payment thereof is refused on the sole ground that there is not sufficient money in the Redemption Fund hereinafter referred to with which to pay same. If the Bond is not presented at maturity, interest thereon shall run only until maturity. SECTION 4. Execution and Authentication. The Bond shall be signed on behalf of the City by the Treasurer and the City Clerk and the corporate seal of the City shall be affixed to the Bond. Such signatures and corporate seal may be reproduced on DOCSOC\835003vl ~22468.0017 Resolution No. 01-072 Page 3 the Bond by engraved, printed or lithographed facsimile thereof, and such signing and sealing shall constitute and be a sufficient and binding execution of the Bond. If any officer whose signature appears on the Bond ceases to be such officer before the delivery of the Bond to the purchaser, such signature shall be as valid as if such officer remained in office until the delivery of the Bond. Only such Bond as shall have printed or engraved thereon a certificate of authentication and registration, substantially in the form set forth in Exhibit"A," hereto attached and by reference made a part hereof, duly executed by the Treasurer, shall be entitled to any rights, benefits or security under this resolution. No Bond shall be valid or obligatory for any purpose unless and until such certificate of authentication and registration shall have been duly executed by the Treasurer, and such certificate of the Treasurer upon any such Bond shall be conclusive and the only evidence that such Bond has been duly authenticated and delivered under this resolution. SECTION 5. Manner and Place of Payment. The principal on the Bond shall be payable in lawful money of the United States of America at the office of the Treasurer in Poway, California. Interest on the Bond shall be paid by the Treasurer by check as provided in Section 3 of this resolution or in a form or manner otherwise acceptable to the owner thereof. SECTION 6. Redemption Prior to Maturity. The outstanding Bond may be redeemed and paid in advance of maturity upon the second day of March or September in any year by giving the notice provided by law and by paying principal and accrued interest without a premium. Such notice shall specify the Bond to be redeemed, the redemption date and the place or places where amounts due upon such redemption will be payable and, in the case of a Bond to be redeemed in part only, such notice shall also specify the portion of the principal amount thereof to be redeemed. If there shall be so called for redemption less than all of a Bond, the City shall execute and the Treasurer shall authenticate and deliver, upon the surrender of such Bond to the Treasurer, without charge to the owner thereof, for the unredeemed balance of the principal amount of the Bond so surrendered, a Bond or Bonds of the same maturity and of any authorized denomination. In the event the Bond is surrendered for redemption, it shall be canceled and retired to the Treasurer or destroyed as permitted by law and a certificate of destruction executed by the Treasurer. SECTION 7. Transfer and Reqistration. The Bond issued under this resolution shall be subject to the provisions for registration and transfer contained in this resolution and in the Bond. So long as any of the Bond shall remain outstanding, the Treasurer shall maintain and keep, at its office in Poway, California, a bond register, being sufficient books for the registration or transfer of the Bond, and, upon presentation of the bond for registration or transfer at said office, the Treasurer shall register or cause to be registered therein, and permit to be transferred thereon, under such reasonable regulations as the City or the Treasurer may prescribe, any bond entitled to registration or transfer. So long as the Bond remains outstanding, the City shall make DOCSOC\835003v I X22468.0017 Resolution No. 01-072 Page 4 all necessary provisions to permit the exchange of the Bond at said office of the Treasurer. Notwithstanding the foregoing, the Bond may be transferred only upon delivery of an opinion of a nationally recognized bond counsel firm as to the federal income tax status of interest earned on the Bond. SECTION 8. Transfer of Bond. (a) The Bond shall be transferable only upon the bond register of the Treasurer referred to in Section 7 of this resolution by the registered owner thereof in person or by his attorney duly authorized in writing, upon surrender thereof, together with a written instrument of transfer satisfactory to the Treasurer duly executed by the registered owner or his duly authorized attorney. Upon the transfer of any such Bond, the Treasurer shall issue in the name of the transferee a new bond of the same aggregate principal amount and maturity as the surrendered Bond. (b) The Treasurer may deem and treat the person in whose name the outstanding Bond shall be registered upon said bond register of the Treasurer as the absolute owner of the Bond, whether the Bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal, or redemption price, if any, of and interest on the Bond and for all other purposes. All such payments so made to any such registered owner or upon his order shall be valid and effectual to satisfy and discharge the liability upon the Bond to the extent of the sum or sums so paid, and neither the City nor the Treasurer shall be affected by any notice to the contrary. SECTION 9. Regulations with Respect to Exchanqes and Transfers. In all cases in which the privilege of exchanging or transferring the Bond is exercised, the City shall execute and the Treasurer shall authenticate and deliver the Bond in accordance with the provisions of this resolution. All Bonds surrendered in any such exchanges or transfers shall be canceled and retired by the Treasurer or destroyed as permitted by law. For every such exchange or transfer of the Bond, whether temporary or definitive, the Treasurer may impose a charge sufficient to reimburse them for any tax, fee or other governmental charge required to be paid with respect to such exchange or transfer (other than such as may have been imposed by the City), which sum or sums shall be paid by the person requesting such exchange or transfer as a condition precedent to the exercise of the privilege of making such exchange or transfer. The Treasurer shall be required to make any such exchange or registration of transfer during the fifteen days immediately preceding any March 2 or September 2. SECTION 10. Bond Mutilated, Destroyed, Stolen or Lost. In case the Bond shall become mutilated or be destroyed, stolen or lost, the City shall execute and the Treasurer shall authenticate and deliver a new Bond of like maturity and principal amount as the Bond so mutilated, destroyed, stolen or lost, in exchange and substitution for such a mutilated Bond, upon surrender and cancellation of the mutilated Bond or in lieu of and in substitution for a destroyed, stolen or lost Bond, upon filing with the Treasurer evidence satisfactory to the Treasurer that the Bond has been destroyed, stolen or lost and proof of ownership thereof, and upon furnishing the Treasurer with indemnity satisfactory to each, complying with such other reasonable regulations as the DOCSOC\835003vl ~2468.0017 Resolution No. 01-072 Page 5 Treasurer may incur. All mutilated Bonds so surrendered to the Treasurer shall be canceled and retired by the Treasurer or destroyed as permitted by law. SECTION 11. Preparation of Definitive Bond; Temporary Bond. The definitive Bond shall be typed, lithographed or printed on steel engraved borders. Until the definitive Bond is prepared, the City may execute, in the same manner as is provided in Section 4, and the Treasurer may authenticate and deliver, in lieu of a definitive Bond, but subject to the same provisions, limitations and conditions as the definitive bond, except as to exchangeability for the Bond, a temporary Bond (which shall be registered as to principal and interest), substantially of the tenor of the definitive Bond in lieu of which such temporary Bond is issued and with such omissions or insertions of and variations from the terms and conditions thereof as may be appropriate to the temporary Bond. The City at its expense shall prepare and execute, and the Treasurer upon the surrender of such temporary Bond for exchange and the cancellation of such surrendered temporary Bond, without charge to the holder thereof, shall authenticate and deliver in exchange therefor, at the office of the Treasurer in Poway, California, a definitive Bond of the same aggregate principal amount and maturity as the temporary Bond which shall in all respects be entitled to the same benefits and security as the definitive Bond issued pursuant to this resolution. Any temporary Bond surrendered in exchange for a definitive Bond shall be canceled and retired by the Treasurer or destroyed as permitted by law. SECTION 12. Redemption Fund. The City shall keep a redemption fund designated by the name of the Bond (the "Redemption Fund"). All sums received by the Treasurer from the collection of the assessments and of the interest and penalties thereon shall be deposited in the Redemption Fund. The City shall disburse moneys from the Redemption Fund to pay the Bond and the interest due thereon. SECTION 13. Bond Proceeds. From the proceeds from the sale of the Bond, the Treasurer shall place the accrued interest, if any, in the Redemption Fund, and the balance shall be placed in the Improvement Fund to pay the Incidental Expenses, as set forth in the Engineer's Report for Assessment District No. 2001-1 (Old Coach Road Waterline Project) prepared by Harris & Associates and heretofore approved by this City Council (the "Engineer's Report") and the amount to reimburse the City for the moneys advanced by the City for the acquisition and construction of the Improvements, and the moneys in said funds shall be used only for the purposes set forth herein and as permitted by the Act. SECTION 14. Improvement Fund. The Treasurer shall deposit in a special fund hereby created and designated the "Assessment District No. 2001-1 (Old Coach Road Waterline Project) Improvement Fund" (the "Improvement Fund") the amounts set forth in Section 14 hereof. All moneys in the Improvement Fund shall be applied exclusively to reimburse the City for amounts paid by the City for the costs of the Improvements and acquisitions described in the Resolution of Intention, as now or hereafter amended or changed by appropriate change and modification proceedings, and all Incidental Expenses. Any surplus remaining in the Improvement Fund after reimbursement to the City and all Incidental Expenses shall be retained in the DOCSOC\835003vlL22468.0017 Resolution No. 01-072 Page 6 Improvement Fund and used to pay maintenance and operation costs of the water system improvements for the benefit of Assessment District No. 2001-1 (Old Coach Road Waterline Project). SECTION 15. Treasurer. This City Council hereby appoints the Treasurer to act as paying agent, transfer agent and registrar for the Bond (the "Treasurer"). SECTION 16. Cumulative Remedy. This City Council covenants that, pursuant to Part 14 (commencing with Section 8830) of Division 10 of the Streets and Highways Code of the State of California, when delinquencies reported by the Auditor of the County of San Diego equal 2% of the total amount of assessments levied by the City, it will order and cause to be commenced and thereafter diligently prosecute an action in the Superior Court of California in and for the County of San Diego to foreclose the lien of any and all such delinquent assessments or of any interest thereon. SECTION 17. Unpaid Assessments as Trust Fund. The unpaid assessments shown on the assessment roll on file in the office of the Superintendent of Streets are determined by this City Council to be correct, and said unpaid assessments, together with the interest thereon, shall remain and constitute a trust fund for the redemption and payment of the Bond and of the interest which may be due thereon. An installment of each assessment shall be payable in each year preceding the date of maturity of each of the several series of Bond which have been issued, sufficient to pay the Bond when due. SECTION 18. Definitions. For the purpose of this Resolution, the following terms shall have the following meanings: Assessment City. The term "Assessment District" means that certain district of land designated as "Assessment District No. 2001-1 (Old Coach Road Waterline Project)", and having the boundaries described in the Final Engineer's Report approved by the City. Bond Counsel. The term "Bond Counsel" means an attorney or firm of attorneys of nationally recognized standing in matters pertaining to the tax-exempt status of interest on tax-exempt obligations issued by states and their political subdivision and acceptable to the City. Bond Year. The term "Bond Yea¢' means the twelve (12) month period commencing on the Delivery Date and ending March 2, 2002 and each twelve-month period thereafter until the Bond is no longer outstanding. Delivery Date. The term "Delivery Date" means the date the Bond is delivered to the initial purchaser. Improvements. The term "Improvements" means those public improvements set forth in the Engineer's Report relating to the Assessment District. DOCSOC\835003v 1~2468.0017 Incidental Expenses. The term "Incidental incidental expenses set forth in the Engineer's Report. Resolution No. 01-072 Page 7 Expenses" means those Treasurer. The term "Treasure(' means the person at any time acting as the City Treasurer, and his successors from time to time. SECTION 19. Incontestability. After the sale and delivery of the Bond by the City, the Bond shall be incontestable by the City. SECTION 20. Contract with Bondholders. The provisions of this resolution and of any other resolution supplementing or amending this resolution shall constitute a contract between the City and the holder of the Bond (herein referred to as the "bondholder~'), and such provisions shall be enforceable by any bondholder for the equal benefit and protection of all bondholders similarly situated by mandamus, accounting, mandatory injunction or any other suit, action or proceeding at law or in equity that is now or may hereafter be authorized under the laws of the State of California in any court of competent jurisdiction. Said contract is made under and is to be construed in accordance with the laws of the State of California. No remedy conferred hereby upon any bondholder is intended to be exclusive of any other remedy, but each such remedy is cumulative and in addition to every other remedy and may be exercised without exhausting and without regard to any other remedy conferred by law. No waiver of any default or breach of duty or contract by any bondholder shall affect any subsequent default or breach of duty or contract or shall impair any right or remedies on said subsequent default or breach. No delay or omission of any bondholder to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed as a waiver of any default or acquiescence therein. Every substantive right and every remedy conferred upon the bondholder may be enforced and exercised as often as may be deemed expedient. In case any suit, action or proceeding to enforce any right or exercise any remedy shall be brought or taken and should said suit, action or proceeding be abandoned, or be determined adversely to the bondholder, then, and in every such case, the City and the bondholder shall be restored to their former positions, rights and remedies as if such suit, action or proceeding had not been brought or taken. SECTION 21. Cessation of Aqreements. When all of the Bond and all interest to accrue thereon have been fully paid and discharged, the agreements in this resolution contained shall cease and terminate, and the City shall be under no further obligation to do or perform any of the covenants, conditions or agreements in this resolution contained. SECTION 22. Partial Invalidity. If any section, subsection, sentence, clause or phrase of this resolution shall be for any reason held by a court of competent jurisdiction to be unconstitutional, invalid or unenforceable, such holding shall not affect the validity of the remaining portions hereof. This City Council hereby declares that it DOCSOC\835003v 1 ~22468.0017 Resolution No. 01-072 Page 8 would have passed this resolution and each section, subsection, sentence, clause or phrase hereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared to be unconstitutional, invalid or unenfomeable, and such holding shall not affect the validity of the remaining portions hereof. This City Council hereby declares that it would have passed this resolution and each section, subsection, sentence, clause or phrase hereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared to be unconstitutional, invalid or unenforceable. SECTION 23. Liberal Construction. This resolution shall be liberally construed to the end that its purpose may be effected. No error, irregularity or informality and no neglect or omission herein or in any proceeding had pursuant hereto which does not directly affect the jurisdiction of this City Council shall void or invalidate this resolution or such proceeding or any part thereof, or any act or determination made pursuant thereto. SECTION 24. No City Obligation. Pursuant to Streets and Highways Code Section 8769, this City Council provided in the Resolution of Intention that the City will not obligate itself to advance available funds from the City treasury to cure any deficiency which may occur in the Redemption Fund to be established for the payment of the Bond. SECTION 25. Approval of the Sale and Delivery of the Bond. The sale of the Bond to the City at par is hereby approved. The Treasurer is hereby authorized and directed to authenticate the Bond and to deliver it to the City upon payment of the purchase price thereof. SECTION26. Division of the Bond. The provisions of Part11.1 (commencing with Section 8760) of the Act, providing an alternative procedure for the division of land and the Bond, shall apply. SECTION 27. Future Actions. The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they may deem necessary or advisable in order to consummate the sale and delivery of the Bond, and otherwise to effectuate the purposes of this Resolution; and such actions previously taken by such officers are hereby ratified and confirmed. SECTION 28. Authority to Act. Any action authorized or directed in this Resolution to be taken or performed by the Mayor or the City Manager may be taken or performed by their designee with the same force and effect as if taken or performed by the Mayor or the City Manager, respectively. SECTION 29. Validity. If any section, subsection, sentence, clause or phrase of this Resolution shall be for any reason held by a court of competent jurisdiction to be unconstitutional, invalid or unenforceable, such holding shall not affect the validity of the remaining portions hereof. The City Council hereby declares that it DOCSOC\835003v 1~2468.0017 Resolution No. 01-072 Page 9 would have passed this Resolution and each section, subsection, sentence, clause or phrase hereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared to be unconstitutional, invalid or unenforceable, and such holding shall not affect the validity of the remaining portions hereof. SECTION 30. Liberal Construction. This Resolution shall be liberally construed to the end that its purpose may be effected. No error, irregularity or informality and no neglect or omission herein or in any proceeding had pursuant hereto which does not directly affect the jurisdiction of the City Council shall void or invalidate this Resolution or such proceeding or any part thereof, or any act or determination made pursuant thereto. SECTION 31. upon its adoption. Effective Date. This Resolution shall take effect immediately PASSED, ADOPTED AND APPROVED by the City Council of the City of Poway at a regular meeting this 31st day of July 2001. ATTEST: Lori ~nne Peoples, City Cle~ Michael P.-'Cafa~ayor DOCSOC\835003vl ~2468.0017 Resolution No. Page 10 01-072 STATE OF CALIFORNIA ) )ss. COUNTY OF SAN DIEGO ) I, Lori Anne Peoples, City Clerk of the City of Poway, do herby certify under penalty of perjury that the foregoing Resolution No. 01- 072 was duly adopted by the City Council at a meeting of said City Council held on the 31st day of July 2001, and that it was so adopted by the following vote: AYES: NOES: NONE ABSTAIN: NONE ABSENT: HIGGINSON EMERY, GOLDBY, REXFORD, CAFAGNA nne'~eoples,'~ity (~lerk City of Poway n:\city\admnserv\director~general\agenda\old coach res authorizing bond issue.doc DOCSOC\835003vl~22468.0017 Resolution No. 01-07~ Page 11 EXHIBIT A $290,350.47 UNITED STATES OF AMERICA STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF POWAY LIMITED OBLIGATION IMPROVEMENT BOND ASSESSMENT DISTRICT NO. 2001-1 (OLD COACH ROAD WATERLINE PROJECT) No. 1 $290,350.47 Pursuant to the Municipal Improvement Act of 1913, Division 12 of the Streets and Highways Code and under and by virtue of the Improvement Bond Act of 1915, Division 10 of the Streets and Highways Code (the "Act"), City of Poway, County of San Diego, State of California (the "City"), will, out of the redemption fund for the payment of the bond issued upon the unpaid portion of assessments made for the work and improvements on certain streets and rights of way in Assessment District No. 2001-1 (Old Coach Road Waterline Project) (the "Assessment District") more fully described in the resolution of intention adopted by the City Council of the City with respect to the Assessment District (the "Resolution of Intention"), pay to the City of Poway, or registered assign, the principal sum of Two Hundred Ninety Thousand Three Hundred Fifty Dollars and Forty-Seven Cents ($290,350.47), in lawful money of the United States of America on September 2 in each of the years and installments of principal as follows: Payment Date Sept 2 Principal Amount 2OO2 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 $12,713.72 $13,444.76 $14,217.84 $15 035.36 $15 899.90 $16 $17 $18 $19 $21 $22 $23,515.65 $24,867.80 $26,297.69 $27,809.82 814.14 780.95 803.36 884.55 027.91 237.02 $290,350.47 DOCSOC\835003vl'x22468.0017 Resolution No. 01-072 Page 12 and in like manner will pay interest from the interest payment date next preceding the date on which this bond is authenticated, unless this bond is authenticated and registered as of an interest payment date, in which event it shall bear interest from such interest payment date, or unless this bond is authenticated and registered on or prior to February 15, 2002, in which event it shall bear interest from its date, until payment of such principal sum shall have been discharged, at the rate of 5.75% per annum, payable semiannually on September 2 and March 2 in each year commencing on March 2, 2002. The principal installments hereof and the interest hereon are payable by check mailed to the owner hereof at the owner's address as it appears on the records of the Treasurer of the City, acting as transfer agent, registrar and paying agent (the "Treasurer"), or by other form or method or at such address as may have been filed with the Treasurer for that purpose, as of the fifteenth day of the month immediately preceding each interest payment date. Each installment of principal will continue to bear interest after maturity at the rate above stated; provided, it is presented at maturity and payment thereof is refused upon the sole ground that there are not sufficient moneys in said redemption fund with which to pay same. If it is not presented at maturity, interest thereon will run until maturity. This Bond shall not be entitled to any benefit under the Act or the Resolution of Issuance of the Limited Obligation Improvement Bonds for Assessment District No. 2001-1 (Old Coach Road Waterline Project), Resolution No. (the "Resolution of Issuance"), or become valid or obligatory for any purpose, until the certificate of authentication and registration hereon endorsed shall have been dated and signed by the Treasurer. This Bond is the only Bond issued by the City under the Act and the Resolution of Issuance, for the purpose of providing means for paying for the work and improvements described in the Resolution of Intention, and is secured by the moneys in the redemption fund established by the Resolution of Issuance and by the unpaid portion of assessments made for the purpose of said work, and, including principal and interest, is payable exclusively out of said fund. This Bond is transferable by the registered owner hereof, in person or by the owner's attorney duly authorized in writing, at the office of the Treasurer in Poway, California, subject to the terms and conditions provided in the Resolution of Issuance, including the payment of certain charges, if any, upon surrender and cancellation of this Bond; provided that this Bond may only be transferred upon the delivery to the City of an Opinion of Bond Counsel as to the federal tax status of interest on this Bond. Upon such transfer, a new registered bond or bonds, of any authorized denomination or denominations, of the same maturity, for the same aggregate principal amount will be issued to the transferee in exchange therefor. DOCSOC\835003vl x,22468.0017 Resolution No. 01-072 Page 13 Neither the issuing agency nor the registration agent shall be required to make such exchange or registration of transfer of bonds during the 15 days immediately preceding any interest payment date. The Treasurer may treat the owner hereof as the absolute owner for all purposes, and the Treasurer shall not be affected by any notice to the contrary. This Bond or any portion of it may be redeemed and paid in advance of maturity upon the 2nd day of March or September in any year by giving at least 30 days' notice by registered mail to the registered owner hereof at the owner's address as it appears on the registration books of the Treasurer by paying principal and accrued interest, without premium. IN WITNESS WHEREOF, said City has caused this Bond to be signed by the Treasurer of said City and its Clerk by their manual signatures, and sealed with the corporate seal of the City hereon all as of the day of ,2001. City Clerk of the City of Poway [SEAL] Treasurer of the City of Poway DOCSOC\835003v 1 ~22468.0017 Resolution No. Page 14 01-072 ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sell(s), transfer(s) unto [PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE] assign(s) and [Please print or typewrite name and address including postal zip code of assignee] the within Bond of the City, County of San Diego, California, and does hereby irrevocably constitute and appoint __ Attorney to transfer said Bond on the books of __., as Treasurer, Transfer Agent, and Registrar, with full power of substitution in the premises. Dated: NOTICE: The signature to this assignment must correspond with the name as written upon the face of the within Bond in every particular without alteration or enlargement, or any change whatsoever. DOCSOC\835003vI'x22468.0017 Resolution No. 01-072 Page 15 AUTHENTICATION AND REGISTRATION This is one of the bonds Issuance, which was registered on Name of Registered Owner City of Poway, California described in the within mentioned Resolution of ,2001 to: Address of Registered Owner City of Poway 13325 Civic Center Drive Poway, California 92064 By:. Treasurer of the City of Poway DOCSOC\835003vl ~22468.0017