HomeMy Public PortalAbout08 August 12, 2009 Commission87754
RECORDS
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
MEETING AGENDA
TIME: 9:30 a.m.
DATE: Wednesday, August 12, 2009
LOCATION: BOARD ROOM
County of Riverside Administrative Center
4080 Lemon Street, First Floor, Riverside
Commissioners
Chair: Bob Magee
lm Vice Chair: Bob Buster
2nd Vice Chair: Greg Pettis
Bob Buster, County of Riverside
John F. Tavaglione, County of Riverside
Jeff Stone, County of Riverside
Roy Wilson, County of Riverside
Marion Ashley, County of Riverside
Bob Botts / Don Robinson, City of Banning
Roger Berg / Jeff Fox, City of Beaumont
Joseph DeConinck / Robert Crain, City of Blythe
Ray Quint° / Jim Hyatt, City of Calimesa
Mary Craton / Jordan Ehrenkranz, City of Canyon Lake
Greg Pettis / Kathleen DeRosa, City of Cathedral City
Eduardo Garcia / Steven Hernandez, City of Coachella
Karen Spiegel / Steve Nolan, City of Corona
Scott Matas / Russell Betts, City of Desert Hot Springs
Robin Lowe / Eric McBride, City of Hemet
Patrick J. Mullany / Larry Spicer, City of Indian Wells
Glenn Miller / Ben Godfrey, City of Indio
Terry Henderson / Don Adolph, City of La Quinta
Bob Magee / Melissa Melendez, City of Lake Elsinore
Darcy Kuenzi / Scott Mann, City of Menifee
Jesse Molina / Bonnie Flickinger, City of Moreno Valley
Rick Gibbs / Kelly Bennett, City of Murrieta
Frank Hall / Malcolm Miller, City of Norco
Jim Ferguson / Cindy Finerty, City of Palm Desert
Steve Pougnet / Ginny Foat, City of Palm Springs
Daryl Busch / Al Landers, City of Perris
Ron Meepos / Alan Seman, City of Rancho Mirage
Steve Adams / Andy Melendrez, City of Riverside
James Potts / Jim Ayres, City of San Jacinto
Ron Roberts / Jeff Comerchero, City of Temecula
Scott Farnam / Bridgette Moore, City of Wildomar
Raymond Wolfe, Governor's Appointee
Anne Mayer, Executive Director
John Standiford, Deputy Executive Director
Comments are welcomed by the Commission. If you wish to provide comments to the Commission, please
complete and submit a Speaker Card to the Clerk of the Board.
11.36.00
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R I V E R S I D E C O U N T Y T R A N S P O R T A T I O N C O M M I S S I O N
w w w . r c t c . o r g
A G E N D A *
* A c t i o n s m a y b e t a k e n o n a n y i t e m l i s t e d o n t h e a g e n d a
9 : 3 0 a . m .
W e d n e s d a y , A u g u s t 1 2 , 2 0 0 9
B O A R D R O O M
C o u n t y o f R i v e r s i d e A d m i n i s t r a t i v e C e n t e r
4 0 8 0 L e m o n S t r e e t , F i r s t F l o o r , R i v e r s i d e , C A
I n c o m p l i a n c e w i t h t h e B r o w n A c t a n d G o v e r n m e n t C o d e S e c t i o n 5 4 9 5 7 . 5 , a g e n d a
m a t e r i a l s d i s t r i b u t e d 7 2 h o u r s p r i o r t o t h e m e e t i n g , w h i c h a r e p u b l i c r e c o r d s r e l a t i n g t o o p e n
s e s s i o n a g e n d a i t e m s , w i l l b e a v a i l a b l e f o r i n s p e c t i o n b y m e m b e r s o f t h e p u b l i c p r i o r t o t h e
m e e t i n g a t t h e C o m m i s s i o n o f f i c e , 4 0 8 0 L e m o n S t r e e t , T h i r d F l o o r , R i v e r s i d e , C A , a n d o n
t h e C o m m i s s i o n ' s w e b s i t e , w w w . r c t c . o r g .
I n c o m p l i a n c e w i t h t h e A m e r i c a n s w i t h D i s a b i l i t i e s A c t a n d G o v e r n m e n t C o d e S e c t i o n
5 4 9 5 4 . 2 , i f s p e c i a l a s s i s t a n c e i s n e e d e d t o p a r t i c i p a t e i n a C o m m i s s i o n m e e t i n g , p l e a s e
c o n t a c t t h e C l e r k o f t h e B o a r d a t ( 9 5 1 ) 7 8 7 - 7 1 4 1 . N o t i f i c a t i o n o f a t / e a s t 4 8 h o u r s p r i o r t o
m e e t i n g t i m e w i l l a s s i s t s t a f f i n a s s u r i n g t h a t r e a s o n a b l e a r r a n g e m e n t s c a n b e m a d e t o
p r o v i d e a c c e s s i b i l i t y a t t h e m e e t i n g .
1 . C A L L T O O R D E R
2 . P L E D G E O F A L L E G I A N C E
3 . R O L L C A L L
4 . P U B L I C C O M M E N T S E a c h i n d i v i d u a l s p e a k e r i s l i m i t e d t o s p e a k t h r e e ( 3 )
c o n t i n u o u s m i n u t e s o r l e s s . T h e C o m m i s s i o n m a y , e i t h e r a t t h e d i r e c t i o n o f t h e C h a i r
o r b y m a j o r i t y v o t e o f t h e C o m m i s s i o n , w a i v e t h i s t h r e e m i n u t e t i m e l i m i t a t i o n .
D e p e n d i n g o n t h e n u m b e r o f i t e m s o n t h e A g e n d a a n d t h e n u m b e r o f s p e a k e r s , t h e
C h a i r m a y , a t h i s / h e r d i s c r e t i o n , r e d u c e t h e t i m e o f e a c h s p e a k e r t o t w o ( 2 )
c o n t i n u o u s m i n u t e s . I n a d d i t i o n , t h e m a x i m u m t i m e f o r p u b l i c c o m m e n t f o r a n y
i n d i v i d u a l i t e m o r t o p i c i s t h i r t y ( 3 0 ) m i n u t e s . A l s o , t h e C o m m i s s i o n m a y t e r m i n a t e
p u b l i c c o m m e n t s i f s u c h c o m m e n t s b e c o m e r e p e t i t i o u s . S p e a k e r s m a y n o t y i e l d t h e i r
t i m e t o o t h e r s w i t h o u t t h e c o n s e n t o f t h e C h a i r . A n y w r i t t e n d o c u m e n t s t o b e
d i s t r i b u t e d o r p r e s e n t e d t o t h e C o m m i s s i o n s h a l l b e s u b m i t t e d t o t h e C l e r k o f t h e
B o a r d . T h i s p o l i c y a p p l i e s t o P u b l i c C o m m e n t s a n d c o m m e n t s o n A g e n d a I t e m s .
Riverside County Transportation Commission Agenda
August 12, 2009
Page 2
Under the Brown Act, the Board should not take action on or discuss matters raised
during public comment portion of the agenda which are not listed on the agenda.
Board members may refer such matters to staff for factual information or to be
placed on the subsequent agenda for consideration.
5. APPROVAL OF MINUTES - TO BE SUBMITTED AT THE NEXT MEETING
6. ADDITIONS/REVISIONS - The Commission may add an item to the Agenda after
making a finding that there is a need to take immediate action on the item and that
the item came to the attention of the Commission subsequent to the posting of the
agenda. An action adding an item to the agenda requires 2/3 vote of the
Commission. if there are less than 2/3 of the Commission members present, adding
an item to the agenda requires a unanimous vote. Added items will be placed for
discussion at the end of the agenda.
7. PROGRAMMING AMERICAN RECOVERY AND REINVESTMENT ACT ON THE
STATE ROUTE 74/INTERSTATE 215 INTERCHANGE PROJECT
Page 1
Overview
This item is for the Commission to approve programming $16.101 million of
American Recovery and Reinvestment Act (ARRA) highway funds in
replacement of $16.101 million of 1989 Measure A funds on the SR-74/l-215
interchange project.
8. PROPOSITION 1B — STATE -LOCAL PARTNERSHIP PROGRAM SUBMITTAL
Page 3
Overview
This item is for the Commission to approve the programming and submittal of
State -Local Partnership Program (SLPP) formula funds in the amount of
$3.7 million for the State Route 74/Interstate 215 project.
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R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n A g e n d a
A u g u s t 1 2 , 2 0 0 9
P a g e 3
9 . A U T H O R I Z A T I O N F O R I S S U A N C E O F S A L E S T A X R E V E N U E B O N D S
O v e r v i e w
T h i s i t e m i s f o r t h e C o m m i s s i o n t o :
P a g e 5
1 ) R e c e i v e a n d f i l e t h e o v e r v i e w p r e s e n t a t i o n r e g a r d i n g t h e i s s u a n c e o f
t h e 2 0 0 9 S e r i e s A , S e r i e s B , a n d S e r i e s C S a l e s T a x R e v e n u e B o n d s
( 2 0 0 9 B o n d s ) ;
2 ) A d o p t R e s o l u t i o n N o . 0 9 - 0 1 7 , " R e s o l u t i o n A u t h o r i z i n g t h e I s s u a n c e
a n d S a l e o f N o t t o E x c e e d $ 1 8 5 , 0 0 0 , 0 0 0 A g g r e g a t e P r i n c i p a l A m o u n t
o f R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n S a l e s T a x R e v e n u e
B o n d s ( L i m i t e d T a x B o n d s ) i n O n e o r M o r e S e r i e s , t h e E x e c u t i o n a n d
D e l i v e r y o f a S u p p l e m e n t a l I n d e n t u r e , O n e o r M o r e P u r c h a s e
C o n t r a c t s , a n O f f i c i a l S t a t e m e n t a n d C o n t i n u i n g D i s c l o s u r e A g r e e m e n t ,
O n e o r M o r e R e m a r k e t i n g A g r e e m e n t s , a n d O n e o r M o r e L i q u i d i t y
F a c i l i t i e s , a n d t h e T a k i n g o f A l l O t h e r A c t i o n s N e c e s s a r y i n C o n n e c t i o n
T h e r e w i t h ; "
3 ) A p p r o v e t h e d r a f t O f f i c i a l S t a t e m e n t f o r t h e i s s u a n c e o f $ 1 8 5 m i l l i o n
i n 2 0 0 9 S e r i e s A , S e r i e s B , a n d S e r i e s C S a l e s T a x R e v e n u e B o n d s a n d
a u t h o r i z e t h e E x e c u t i v e D i r e c t o r t o a p p r o v e a n d e x e c u t e t h e p r i n t i n g
a n d d i s t r i b u t i o n o f t h e O f f i c i a l S t a t e m e n t ;
4 ) A p p r o v e t h e d r a f t S e c o n d S u p p l e m e n t a l I n d e n t u r e b e t w e e n t h e
R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n a n d U . S . B a n k N a t i o n a l
A s s o c i a t i o n , a s T r u s t e e , a n d a u t h o r i z e t h e E x e c u t i v e D i r e c t o r t o
a p p r o v e a n d e x e c u t e t h e f i n a l S e c o n d S u p p l e m e n t a l I n d e n t u r e ;
5 ) A p p r o v e t h e d r a f t B o n d P u r c h a s e A g r e e m e n t b e t w e e n t h e R i v e r s i d e
C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n a n d B a r c l a y s C a p i t a l I n c .
( B a r c l a y s ) , a s U n d e r w r i t e r R e p r e s e n t a t i v e a c t i n g o n b e h a l f o f i t s e l f a n d
E . J . D e L a R o s a & C o . I n c . ( D e L a R o s a ) a n d B a c k s t r o m M c C a r l e y
B e r r y & C o . , L L C ( B a c k s t r o m ) , ( c o l l e c t i v e l y t h e U n d e r w r i t e r s ) , a n d
a u t h o r i z e t h e E x e c u t i v e D i r e c t o r t o a p p r o v e a n d e x e c u t e t h e f i n a l B o n d
P u r c h a s e A g r e e m e n t ;
6 ) A p p r o v e t h e d r a f t R e m a r k e t i n g A g r e e m e n t b e t w e e n t h e R i v e r s i d e
C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n a n d t h e r e m a r k e t i n g a g e n t ( s ) ,
a u t h o r i z e t h e E x e c u t i v e D i r e c t o r t o a p p r o v e t h e r e m a r k e t i n g a g e n t ( s ) ,
a n d a u t h o r i z e t h e E x e c u t i v e D i r e c t o r t o a p p r o v e a n d e x e c u t e o n e o r
m o r e f i n a l R e m a r k e t i n g A g r e e m e n t ( s ) ;
7 ) A p p r o v e t h e d r a f t S t a n d b y B o n d P u r c h a s e A g r e e m e n t b e t w e e n t h e
R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n a n d J P M o r g a n C h a s e
B a n k , N a t i o n a l A s s o c i a t i o n ( J P M o r g a n ) , a s l i q u i d i t y f a c i l i t y p r o v i d e r ,
a n d a u t h o r i z e t h e E x e c u t i v e D i r e c t o r t o a p p r o v e a n d e x e c u t e o n e o r
m o r e f i n a l s t a n d b y B o n d P u r c h a s e A g r e e m e n t ( s ) ; a n d
8 ) A p p r o v e t h e e s t i m a t e d c o s t s o f i s s u a n c e t o b e p a i d f r o m t h e b o n d
p r o c e e d s a n d e x e c u t i o n o f r e l a t e d a g r e e m e n t s , a s r e q u i r e d .
Riverside County Transportation Commission Agenda
August 12, 2009
Page 4
10. ITEM(S) PULLED FROM CONSENT CALENDAR AGENDA
11. COMMISSIONERS / EXECUTIVE DIRECTOR REPORT
Overview
This item provides the opportunity for the Commissioners and the
Executive Director to report on attended meetings/conferences and any other
items related to Commission activities.
12. ADJOURNMENT
The next Commission meeting is scheduled to be held at 9:30 a.m.,
Wednesday, September 9, 2009, Board Room, County of Riverside
Administrative Center, 4080 Lemon Street, First Floor, Riverside.
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RIVERSIDE COUNTY TRANSPORTATION COMMISSION
ROLL CALL
AUGUST 12, 2009
Present Absent
County of Riverside, District I
County of Riverside, District II
County of Riverside, District III
County of Riverside, District IV
......_..............
County of Riverside, -District V
City of Banning
City of Beaumont
City of Blythe
City of Calimesa
City of Canyon Lake
City of Cathedral City
City of Coachella
City of Corona
City of Desert Hot Springs
City of Hemet
City of Indian Wells
City of Indio
City of La Quinta
City of Lake Elsinore
City of Menifee
City of Moreno Valley
City of Murrieta
City of Norco
City of Palm Desert
City of Palm Springs
City of Perris
City of Rancho Mirage
City of Riverside
City of San Jacinto
City of Temecula
City of Wildomar
Governor's Appointee, Caltrans District 8
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
COMMISSIONER SIGN -IN SHEET
AUGUST 12, 2009
M
AGENCY
EMAIL ADDRESS
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RIVERS/DE COUNTY TRANSPORTATION COMMISSION
DATE:
August 12, 2009
TO:
Riverside County Transportation Commission
FROM:
Shirley Medina, Programming and Planning Manager
THROUGH:
Anne Mayer, Executive Director
SUBJECT:
Programming American Recovery and Reinvestment Act on the
State Route 74/Interstate 215 Interchange Project
STAFF RECOMMENDATION:
This item is for the Commission to approve programming $16.101 million of
American Recovery and Reinvestment Act (ARRA) highway funds in replacement of
$16.101 million of 1989 Measure A funds on the SR-74/I-215 interchange project.
BACKGROUND INFORMATION:
In March 2009, the Commission approved ARRA highway funding for five
interchange projects. Below is a listing and status of the project obligations:
Project
SR-60 @ Valley Way
Obligation Status
Federal Highway Administration (FHWA)
obligation complete
SR-91 @ Van Buren Boulevard Caltrans District 08 review, pursuing state
funding
1-10 @ Bob Hope Drive/Ramon Road FHWA obligation complete
1-10 @ Palm Drive FHWA reviewing obligation
1-215 @ Clinton Keith Road Caltrans HQ reviewing obligation, awaiting
FHWA review and obligation
The SR-91 /Van Buren Boulevard interchange was approved for $16.101 million in
ARRA funding. However, the city of Riverside is currently pursuing state funding
currently programmed in the State Transportation Improvement Program (STIP) and
local funds (1989 Measure A, Transportation Uniform Mitigation Fee (TUMF) and
city funds) for the construction phase to ensure timely delivery of the
SR-91 /Van Buren Boulevard interchange project. Therefore, staff recommends the
Commission reprogram $16.101 million to another eligible project.
Agenda Item 7
1
Given that the ARRA funds must be obligated by March 2010, projects must be
ready to list and have their obligation requests submitted to Ca!trans by
December 2009. Staff is recommending that the $16.101 million ARRA funding
be moved to the SR-74/I-215 interchange project, which is federalized, scheduled
for construction in January 2010, and can meet the December obligation submittal
date.
A budget adjustment would be required to reflect the new funding source for the
FY 2009/10 expenditures including a reduction to the 1989 Measure A funds
currently budgeted for the SR-74/I-215 interchange from $7.380 million to
$3.7 million. The $3.7 million of 1989 Measure A funds will match proposed
State -Local Partnership Program funding, which is referenced in a related agenda
item.
Financial Information
In Fiscal Year Budget:
No
Year:
FY 2009/10
Amount:
$16,101,000
Source of Funds:
ARRA (federal)
Budget Adjustment:
Yes
GLA No.:
222 31 41409 P3015 (Federal revenues - other)
Fiscal Procedures Approved:
\14te4A46,v juiv O�
Date:
08/04/2009
Agenda Item 7
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R I V E R S I D E C O U N T Y T R A N S P O R T A T I O N C O M M I S S I O N
D A T E :
A u g u s t 1 2 , 2 0 0 9
T O :
R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n
F R O M :
S h i r l e y M e d i n a , P r o g r a m m i n g a n d P l a n n i n g M a n a g e r
T H R O U G H :
A n n e M a y e r , E x e c u t i v e D i r e c t o r
S U B J E C T :
P r o p o s i t i o n 1 B S t a t e - L o c a l P a r t n e r s h i p P r o g r a m S u b m i t t a l
S T A F F R E C O M M E N D A T I O N :
T h i s i t e m i s f o r t h e C o m m i s s i o n t o a p p r o v e t h e p r o g r a m m i n g a n d s u b m i t t a l o f
S t a t e - L o c a l P a r t n e r s h i p P r o g r a m ( S L P P ) f o r m u l a f u n d s i n t h e a m o u n t o f $ 3 . 7 m i l l i o n
f o r t h e S t a t e R o u t e 7 4 / I n t e r s t a t e 2 1 5 p r o j e c t .
B A C K G R O U N D I N F O R M A T I O N :
S L P P f u n d i n g i s m a d e a v a i l a b l e f r o m t h e H i g h w a y S a f e t y , T r a f f i c R e d u c t i o n ,
A i r Q u a l i t y , a n d P o r t S e c u r i t y B o n d A c t o f 2 0 0 6 ( A c t ) , c o m m o n l y r e f e r r e d t o a s
P r o p o s i t i o n 1 B . T h e A c t a u t h o r i z e d $ 1 b i l l i o n f o r t h e S L P P o v e r a f i v e - y e a r p e r i o d
a n d a u t h o r i z e s t h e C a l i f o r n i a T r a n s p o r t a t i o n C o m m i s s i o n ( C T C ) t o a d m i n i s t e r t h e
p r o g r a m .
T h e S L P P c o n s i s t s o f t w o p r o g r a m s . T h e f i r s t p r o g r a m i s a f o r m u l a p r o g r a m f o r
v o t e r - a p p r o v e d t a x e s a n d f e e s . M e a s u r e A q u a l i f i e s a s R i v e r s i d e C o u n t y ' s
t r a n s p o r t a t i o n s a l e s t a x a n d t h e C o m m i s s i o n w i l l p r o p o s e p r o j e c t s f o r S L P P f o r m u l a
f u n d s . T h e a m o u n t o f S L P P f o r m u l a f u n d i n g a v a i l a b l e f o r p r o g r a m m i n g i s
$ 2 1 . 9 6 5 m i l l i o n .
T h e s e c o n d p r o g r a m i s a c o m p e t i t i v e g r a n t p r o g r a m . T h i s p r o g r a m i s o p e n t o
a g e n c i e s t h a t h a v e a d o p t e d u n i f o r m d e v e l o p e r f e e s . R i v e r s i d e C o u n t y ' s t w o
T r a n s p o r t a t i o n U n i f o r m M i t i g a t i o n F e e ( T U M F ) p r o g r a m s , a d m i n i s t e r e d b y t h e
C o a c h e l l a V a l l e y A s s o c i a t i o n o f G o v e r n m e n t s a n d W e s t e r n R i v e r s i d e C o u n c i l o f
G o v e r n m e n t s , a l l o w l o c a l a g e n c i e s t o a p p l y f o r f u n d i n g o f u p t o $ 1 m i l l i o n p e r
p r o j e c t . F o r F Y 2 0 0 9 / 1 0 , $ 9 . 8 m i l l i o n i s a v a i l a b l e f o r t h e c o m p e t i t i v e g r a n t
p r o g r a m s t a t e w i d e . S t a f f e n c o u r a g e d l o c a l a g e n c i e s w i t h q u a l i f i e d p r o j e c t s t o
a p p l y u n d e r t h e c o m p e t i t i v e g r a n t p r o g r a m a n d p r o v i d e d t h e S L P P g u i d e l i n e s t o t h e
l o c a l a g e n c i e s a t t h e J u l y 2 0 0 9 T e c h n i c a l A d v i s o r y C o m m i t t e e m e e t i n g .
A g e n d a I t e m 8
3
Project applications for the formula and competitive grant programs must be
submitted to the CTC by August 15, 2009. In order to be eligible for
programming, projects must:
• Be ready for construction in FY 2009/10;
• Have a dollar for dollar match (sales tax/fee must match SLPP funding
amount for construction phase); and
• Be fully funded.
SLPP Formula Proposal
Given that projects must have a dollar for dollar match for the construction phase,
staff is recommending programming $3.7 million of SLPP and the required match of
$3.7 million of Measure A funds for the SR-74/I-215 interchange, which has a
construction estimate of approximately $40 million. Other funding currently
programmed for the interchange includes TUMF ($14 million), federal ($2.4 million),
and $16.101 million of American Recovery and Reinvestment Act (ARRA) funds
proposed in a related agenda item.
The state plans to issue bonds in fall 2009 and Ca[trans will include STIP projects
that have been deferred due to lack of available funding and SLPP projects. The
remaining SLPP formula funding balance can be programmed at any time.
Throughout the year the Commission will review highway and regional arterial
projects ready for construction that have the required Measure A match for
consideration of programming SLPP Formula funds. Commission staff anticipates
more projects will be ready for construction in FY 2010/11.
Financial Information
In Fiscal Year Budget:
Yes
Year:
FY 2009/10
Amount:
$3,700,000
Source of Funds:
Measure A Highway and
SLPP
Budget Adjustment:
Yes
GLA No.:
222 31 41509 P3015 (State Revenue -other)
Fiscal Procedures Approved:
\Ilm,„*.4.
Date:
08/04/2009
Agenda Item 8
•
•
4
"
C O M M I S S I O N E R S P L E A S E G I V E S P E C I A L A T T E N T I O N T O T H E B O L D
P A R A G R A P H I N T H I S A G E N D A I T E M .
R I V E R S I D E
C O U N T Y T R A N S P O R T A T I O N C O M M I S S I O N
D A T E :
A u g u s t 1 2 , 2 0 0 9
T O :
R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n
F R O M :
T h e r e s i a T r e v i n o , C h i e f F i n a n c i a l O f f i c e r
T H R O U G H :
A n n e M a y e r , E x e c u t i v e D i r e c t o r
S U B J E C T :
A u t h o r i z a t i o n f o r I s s u a n c e o f S a l e s T a x R e v e n u e B o n d s
S T A F F R E C O M M E N D A T I O N :
T h i s i t e m i s f o r t h e C o m m i s s i o n t o :
1 ) R e c e i v e a n d f i l e t h e o v e r v i e w p r e s e n t a t i o n r e g a r d i n g t h e i s s u a n c e o f t h e
2 0 0 9 S e r i e s A , S e r i e s B , a n d S e r i e s C S a l e s T a x R e v e n u e B o n d s
( 2 0 0 9 B o n d s ) ;
2 ) A d o p t R e s o l u t i o n N o . 0 9 - 0 1 7 , " R e s o l u t i o n A u t h o r i z i n g t h e I s s u a n c e a n d S a l e
o f N o t t o E x c e e d $ 1 8 5 , 0 0 0 , 0 0 0 A g g r e g a t e P r i n c i p a l A m o u n t o f R i v e r s i d e
C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n S a l e s T a x R e v e n u e B o n d s ( L i m i t e d T a x
B o n d s ) i n O n e o r M o r e S e r i e s , t h e E x e c u t i o n a n d D e l i v e r y o f a S u p p l e m e n t a l
I n d e n t u r e , O n e o r M o r e P u r c h a s e C o n t r a c t s , a n O f f i c i a l S t a t e m e n t a n d
C o n t i n u i n g D i s c l o s u r e A g r e e m e n t , O n e o r M o r e R e m a r k e t i n g A g r e e m e n t s ,
a n d O n e o r M o r e L i q u i d i t y F a c i l i t i e s , a n d t h e T a k i n g o f A l l O t h e r A c t i o n s
N e c e s s a r y i n C o n n e c t i o n T h e r e w i t h ; "
3 ) A p p r o v e t h e d r a f t O f f i c i a l S t a t e m e n t f o r t h e i s s u a n c e o f $ 1 8 5 m i l l i o n i n
2 0 0 9 S e r i e s A , S e r i e s B , a n d S e r i e s C S a l e s T a x R e v e n u e B o n d s a n d
a u t h o r i z e t h e E x e c u t i v e D i r e c t o r t o a p p r o v e a n d e x e c u t e t h e p r i n t i n g a n d
d i s t r i b u t i o n o f t h e O f f i c i a l S t a t e m e n t ;
4 ) A p p r o v e t h e d r a f t S e c o n d S u p p l e m e n t a l I n d e n t u r e b e t w e e n t h e R i v e r s i d e
C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n a n d U . S . B a n k N a t i o n a l A s s o c i a t i o n , a s
T r u s t e e , a n d a u t h o r i z e t h e E x e c u t i v e D i r e c t o r t o a p p r o v e a n d e x e c u t e t h e
f i n a l S e c o n d S u p p l e m e n t a l I n d e n t u r e ;
5 ) A p p r o v e t h e d r a f t B o n d P u r c h a s e A g r e e m e n t b e t w e e n t h e R i v e r s i d e C o u n t y
T r a n s p o r t a t i o n C o m m i s s i o n a n d B a r c l a y s C a p i t a l I n c . ( B a r c l a y s ) , a s
U n d e r w r i t e r R e p r e s e n t a t i v e a c t i n g o n b e h a l f o f i t s e l f a n d E . J . D e L a R o s a &
C o . I n c . ( D e L a R o s a ) a n d B a c k s t r o m M c C a r l e y B e r r y & C o . , L L C
( B a c k s t r o m ) , ( c o l l e c t i v e l y t h e U n d e r w r i t e r s ) , a n d a u t h o r i z e t h e E x e c u t i v e
D i r e c t o r t o a p p r o v e a n d e x e c u t e t h e f i n a l B o n d P u r c h a s e A g r e e m e n t ;
A g e n d a I t e m 9
5
6) Approve the draft Remarketing Agreement between the Riverside County
Transportation Commission and the remarketing agent(s), authorize the
Executive Director to approve the remarketing agent(s), and authorize the
Executive Director to approve and execute one or more final Remarketing
Agreement(s);
7) Approve the draft Standby Bond Purchase Agreement between the Riverside
County Transportation Commission and JPMorgan Chase Bank, National
Association (JPMorgan), as liquidity facility provider, and authorize the
Executive Director to approve and execute one or more final standby Bond
Purchase Agreement(s); and
8) Approve the estimated costs of issuance to be paid from the bond proceeds
and execution of related agreements, as required.
BACKGROUND INFORMATION:
Prior to the commencement of the 2009 Measure A on July 1, 2009, the
Commission established a financing program in order to advance project
development and land and right-of-way acquisition, as follows:
• In March 2005, the Commission established a $185 million commercial
paper program. Currently the Commission has $110 million in outstanding
commercial paper notes.
• As a means to achieve a greater level of interest rate stability in connection
with a proposed refinancing of outstanding debt in late 2009, the
Commission entered into two forward -starting interest rate swaps in
August 2006, for a total notional amount of $185 million. On a weekly
basis subject to monthly settlements, the Commission pays the
counterparties a fixed rate of 3.679%, and the counterparties pay the
Commission a variable rate of 67% of one -month LIBOR. The swaps are
effective on October 1, 2009. In September 2008, one of the swaps was
terminated due to the Lehman Brothers bankruptcy, which was a trigger
event under the swap agreements. The Commission entered into a
replacement swap with another counterparty, Deutsche Bank, at a new fixed
rate of 3.206%.
• In June 2008, the Commission issued $126.4 million in sales tax revenue
bonds (2008 Bonds) to refinance $110.005 million in outstanding
commercial paper notes, as it was necessary to restore the commercial paper
program to its maximum capacity to continue to pay project cost
commitments. The bonds are subject to redemption on December 1, 2009,
or will be remarketed at a new interest rate.
Agenda Item 9
•
6
"
P l a n o f F i n a n c e
A t t h e J u l y 8 , 2 0 0 9 m e e t i n g , s t a f f p r e s e n t e d a p l a n o f f i n a n c e r e l a t e d t o a
p r o p o s e d $ 1 8 5 m i l l i o n b o n d i s s u a n c e i n 2 0 0 9 ( 2 0 0 9 B o n d s ) . C u r r e n t p l a n s a r e t o
i s s u e v a r i a b l e r a t e b o n d s , w h i c h w i l l r e q u i r e l i q u i d i t y s u p p o r t , t o r e f i n a n c e t h e
2 0 0 8 B o n d s a n d a p p r o x i m a t e l y $ 5 0 m i l l i o n i n c o m m e r c i a l p a p e r n o t e s o u t s t a n d i n g ,
f u n d a n i n c r e a s e t o t h e d e b t s e r v i c e r e s e r v e f u n d , a n d p a y t h e c o s t s o f i s s u a n c e o n
t h e p r o p o s e d 2 0 0 9 B o n d s . A s a v a r i a b l e r a t e d e b t i s s u e , t h e p r o p o s e d 2 0 0 9 B o n d s
w o u l d b e i n t e g r a t e d w i t h t h e i n t e r e s t r a t e s w a p s ; h o w e v e r , t h e f i n a n c i a l t e a m a l s o
d e v e l o p e d a l t e r n a t i v e s t o i s s u e a c o m b i n a t i o n o f v a r i a b l e a n d f i x e d r a t e b o n d s o r
o n l y f i x e d r a t e b o n d s i f o n e o r b o t h o f t h e s w a p s w a s t e r m i n a t e d . T h e f i n a n c i a l
t e a m i n t e n d s t o c o n t i n u e m o n i t o r i n g t h e s w a p t e r m i n a t i o n c o s t s a n d f i n a n c i a l
m a r k e t c o n d i t i o n s b e f o r e s e l e c t i n g o n e o f t h e s e a l t e r n a t i v e s . T h e c o m b i n a t i o n o f
t h e c o m m e r c i a l p a p e r p r o g r a m m a x i m u m d e b t c a p a c i t y o f $ 1 8 5 m i l l i o n a n d t h e
p r o p o s e d 2 0 0 9 B o n d s o f $ 1 8 5 m i l l i o n , a g g r e g a t i n g $ 3 7 0 m i l l i o n , w i l l n o t e x c e e d
t h e $ 5 0 0 m i l l i o n d e b t l i m i t a t i o n s p e c i f i e d i n t h e 2 0 0 9 M e a s u r e A .
T h e p r o p o s e d 2 0 0 9 B o n d s a r e 2 0 - y e a r b o n d s w i t h a f i n a l m a t u r i t y o f J u n e 2 0 2 9 .
I n t e r e s t r a t e s o n t h e b o n d s w i l l b e r e s e t w e e k l y b y t h e r e m a r k e t i n g a g e n t s , w i t h
s u c h r a t e s b e i n g d e t e r m i n e d , i n p a r t , b a s e d o n t h e m a r k e t p e r f o r m a n c e o f s i m i l a r ,
t a x - e x e m p t b o n d s . T h e u n d e r w r i t e r s m a y a l s o s e r v e a s r e m a r k e t i n g a g e n t s a n d
h a v e a g r e e d t o a n a n n u a l r e m a r k e t i n g f e e o f 1 0 b a s i s p o i n t s . T o s u p p o r t t h e
p r o p o s e d 2 0 0 9 B o n d s , t h e C o m m i s s i o n s o l i c i t e d b i d s f r o m b a n k s i n t e r e s t e d i n
p r o v i d i n g a l i q u i d i t y f a c i l i t y . T h e f i n a n c i a l t e a m i s c u r r e n t l y n e g o t i a t i n g a g r e e m e n t
t e r m s a n d r e c o m m e n d s s e l e c t i n g J P M o r g a n ' s o f f e r f o r a t w o - y e a r l i q u i d i t y f a c i l i t y
a t 1 2 5 b a s i s p o i n t s , s u b j e c t t o a g r e e m e n t o n a c c e p t a b l e t e r m s . T h e s e c u r i t y f o r
t h e b o n d s a n d l i q u i d i t y f a c i l i t y i s t h e 2 0 0 9 M e a s u r e A s a l e s t a x r e c e i p t s .
T h e f i n a n c i n g t e a m t h a t h a s p a r t i c i p a t e d i n t h e d e v e l o p m e n t o f t h i s p r o p o s e d p l a n
o f f i n a n c e a n d r e l a t e d d o c u m e n t s i s c o m p r i s e d o f t h e f o l l o w i n g k e y m e m b e r s :
" F i n a n c i a l A d v i s o r : F i e l d m a n , R o l a p p & A s s o c i a t e s ;
" B o n d C o u n s e l : O r r i c k H e r r i n g t o n & S u t c l i f f e L L P ;
" D i s c l o s u r e C o u n s e l : F u l b r i g h t & J a w o r s k i L L P ;
" G e n e r a l C o u n s e l : B e s t , B e s t & K r i e g e r L L P ;
" U n d e r w r i t e r s / R e m a r k e t i n g A g e n t s : B a r c l a y s , D e L a R o s a , a n d B a c k s t r o m ;
" U n d e r w r i t e r s C o u n s e l : H a w k i n s D e l a f i e l d & W o o d L L P ;
" L i q u i d i t y P r o v i d e r : J P M o r g a n ; a n d
" T r u s t e e : U . S . B a n k N a t i o n a l A s s o c i a t i o n .
A r r a n g e m e n t s h a v e b e e n m a d e t o p r e s e n t t h i s p l a n o f f i n a n c e t o t h e r a t i n g
a g e n c i e s . F i r s t V i c e C h a i r B o b B u s t e r , E x e c u t i v e D i r e c t o r A n n e M a y e r ,
C h i e f F i n a n c i a l O f f i c e r T h e r e s i a T r e v i n o , a n d c e r t a i n m e m b e r s o f t h e f i n a n c e t e a m
w i l l p a r t i c i p a t e i n t h e s e p r e s e n t a t i o n s t o c o n f i r m t h e s t r o n g c r e d i t r a t i n g s o n t h e
C o m m i s s i o n ' s o u t s t a n d i n g b o n d s a n d t o s e e k r a t i n g s o n t h e p r o p o s e d 2 0 0 9 B o n d s
A g e n d a I t e m 9
7
in light of the decline in sales tax revenues. A draft of the rating agency
presentation is included as an attachment. Meetings are scheduled for
August 24-25, 2009 in New York with Moody's Investors Service, Standards &
Poor's, and Fitch Ratings. Credit ratings are expected to be received by
September 3, 2009.
The proposed documents for this transaction will continue to be reviewed and
revised for any matters that arise as a result of these rating meetings and other
matters. The Official Statement is expected to be completed and printed by
September 14, 2009, in order to price the bonds on September 29, 2009. Final
documents will be prepared and executed prior to the expected closing date of
October 1, 2009. The drafts of the documents for the proposed 2009 Bonds are
included attached for the Commission's adoption or approval and consist of the
following:
• Official Statement (draft);
• Resolution No. 09-017 (draft) authorizing the issuance and sale of a not to
exceed amount of sales tax revenue bonds in one or more series; the
execution and delivery of a supplemental indenture, one or more purchase
contracts, an Official Statement and continuing disclosure agreement, one or
more Remarketing Agreements, and one or more liquidity facilities; and the
taking of all other actions necessary in connection with this transaction;
• Second Supplemental Indenture between the Commission and the trustee
(draft) regarding the terms and conditions of the issuance of the proposed
2009 Bonds; and
• Bond Purchase Agreement (draft) between the Underwriters and the
Commission regarding the purchase of the proposed 2009 Bonds;
• Remarketing Agreement (draft) between the remarketing agent(s) and the
Commission regarding the remarketing of the proposed 2009 Bonds; and
• Standby Bond Purchase Agreement (draft) between JPMorgan and the
Commission regarding the liquidity support for the proposed 2009 Bonds.
One of the actions at today's meeting is for the Commission to approve the form of
the Official Statement and authorize its distribution in connection with the sales
and pricing of the proposed 2009 Bonds. The Official Statement is required under
state and federal securities laws prohibiting the offer and sale of securities such as
the proposed 2009 Bonds unless all matters that would be material to an investor
in the proposed 2009 Bonds have been adequately disclosed and there has been no
omission of material facts that would cause statements made in the Official
Statement, in the light of the circumstances under which they were made, to be
misleading. Furthermore, under rules of the Securities and Exchange Commission,
the underwriters cannot purchase the proposed 2009 Bonds unless they have
received a "substantially final" offering document, which discloses all material
information that they reasonably believe to be true and correct.
Agenda Item 9
•
8
The Commissioners serving on the Board as the governing body of the issuer of the
proposed 2009 Bonds are expected to read and be familiar with the information
described in the attached draft Official Statement. The Commissioners may
employ the services of experts to take the lead in the drafting and review of the
Official Statement; however, the Commissioners have the duty to review the
information and bring to the attention of those responsible for the preparation of
the offering document any misstatements or omissions in the draft and to ask
questions it is unclear about the information or their role. The financing team will
be available at the Commission meeting to respond to the identification of any
misstatements or omissions or to such questions.
Significant changes to these documents are not anticipated, with the exception of
the final agreement terms with a liquidity provider and details of the bond pricing
scheduled for September 29, 2009. The financing team is negotiating terms of the
Standby Bond Purchase Agreement with JP Morgan as well as a back-up liquidity
provider. Since general legal counsel is a key member of the financing team, staff
recommends that the executive director be authorized to approve and execute the
final documents.
Staff recommends adoption of draft Resolution 09-017; approval of the draft
Official Statement, Second Supplemental Indenture, Bond Purchase Agreement,
Remarketing Agreement, and standby Bopd Purchase Agreement; approval of the
estimated costs of issuance and execution of related agreements, as required; and
authorization of the Executive Director to approve and execute the final documents.
The estimated costs of issuance do not exceed the Commission's debt
management policy that limits such costs to 2%.
Financial Information
$185,000,000 bond
proceeds;
In Fiscal Year Budget:
Yes
Year:
FY 2009/10
Amount:
$176,395,000 principal
payment;
$700,000 costs of
issuance
Source of Funds:
2009 Sales Tax Revenue Bonds
Budget Adjustment:
No
304 31 59102 (Bond proceeds) $185,000,000
304 31 97001 (Transfer out) $126,395,000 Ito retire 2008 bonds)
GLA No.:
304 31 97001 (Transfer out) $50,000,000 (to retire commercial paper)
304 31 97001 (Transfer out) $7,905,000 (to increase debt reserve)
304 31 96103 (Costs of issuance) $700,000
Fiscal Procedures Approved:
Date:
07/28/2009
Agenda Item 9
9
Attachments:
1) Resolution No. 09-017 (Draft)
2) Official Statement (Draft)
3) Second Supplemental Indenture (Draft)
4) Bond Purchase Agreement (Draft)
5) Remarketing Agreement (Draft)
6) Standby Bond Purchase Agreement (Draft)
7) Estimated Costs of Issuance (Draft)
8) Rating Agency Presentation (Draft)
Agenda Item 9
•
•
10
ATTACHMENT 1
NO.09-017
RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF NOT TO EXCEED
$185,000,000 AGGREGATE PRINCIPAL AMOUNT OF RIVERSIDE COUNTY
TRANSPORTATION COMMISSION SALES TAX REVENUE BONDS (LIMITED TAX
BONDS) IN ONE OR MORE SERIES, THE EXECUTION AND DELIVERY OF A
SUPPLEMENTAL INDENTURE, ONE OR MORE PURCHASE CONTRACTS, AN
OFFICIAL STATEMENT AND CONTINUING DISCLOSURE AGREEMENT, ONE OR
MORE REMARKETING AGREEMENTS, AND ONE OR MORE LIQUIDITY
FACILITIES, AND THE TAKING OF ALL OTHER ACTIONS NECESSARY IN
CONNECTION THEREWITH
WHEREAS, the Riverside County Transportation Commission (the "Commission") is a
county transportation commission duly organized and existing pursuant to the County
Transportation Commissions Act, being Division 12 of the Public Utilities Code of the State of
Califomia (Section 130000 et seq.);
WHEREAS, the Commission is authorized pursuant to the Riverside County
Transportation Sales Tax Act, being Division 25 of the Public Utilities Code of the State of
California (Section 240000 et seq.) (the "Act"), to, among other things, and with voter approval,
levy a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing
with Section 7251) of Division 2 of the California Revenue and Taxation Code (the "Sales Tax
Law") and to issud limited tax bonds payable from the proceeds of such tax;
WHEREAS, the Commission adopted Ordinance No. 02-001, named the "Transportation
Expenditure Plan and Retail Transaction and Use Tax Ordinance" (the "Ordinance") on May 8,
2002, pursuant to the provisions of the Act, which Ordinance provides for the imposition of a
retail transactions and use tax (the "Sales Tax") applicable in the incorporated and
unincorporated territory of the County in accordance with the provisions of the Sales Tax Law at
the rate of zero percent (0%) until the expiration of the 1988 Sales Tax on June 30, 2009, and
thereafter at the rate of one-half of one percent (1/2%) for a period not to exceed thirty (30)
years;
WHEREAS, by its terms, the Ordinance became effective at the close of the polls on
November 5, 2002, the day of the election at which the proposition imposing the Sales Tax was
approved by more than two-thirds of the electors voting on the measure;
WHEREAS, the Ordinance empowers the Commission to sell or issue, from time to
time, on or before the collection of the Sales Tax, bonds, or other evidences of indebtedness, in
the aggregate principal amount at any one time outstanding not to exceed $500 million for
capital expenditures for various purposes, including to carry out the transportation projects
described in the Riverside County Transportation Improvement Plan, adopted as part of the
Ordinance, including any future amendments thereto (the "Expenditure Plan");
OHS Wes1:260692474.6
11
WHEREAS, the Commission is authorized by Section 240309 of the California Public
Utilities Code to issue from time to time limited tax bonds (defined to include indebtedness and
securities of any kind or class, including sales tax revenue bonds), secured and payable in whole
or in part from revenues of the Sales Tax ("Sales Tax Revenues");
WHEREAS, the Commission has heretofore authorized the issuance of not to exceed
$200,000,000 in aggregate principal amount of its Commercial Paper Notes (Limited Tax
Bonds), Series A and Series B (collectively, the "CP Notes'), pursuant to an Indenture dated as
of March 1, 2005 (the "CP Indenture"), by and between the Commission and U.S. Bank National
Association, as successor trustee;
WHEREAS, the Commission has heretofore executed and delivered and there are
currently outstanding interest rate swap agreements in an aggregate notional amount of $185
million (the "Existing Swaps"), which Existing Swaps have an effective date of October 1, 2009;
WHEREAS, the Commission has heretofore issued its Sales Tax Revenue Bonds
(Limited Tax Bonds) (the "Prior Bonds"), pursuant to an Indenture; dated as of June 1, 2008 (as
amended and supplemented, the "Indenture"), and a First Supplemental Indenture, dated as of
June 1, 2008, each by and between the Commission and U.S. Bank National Association, as
trustee (the "Trustee");
WHEREAS, the Commission hereby determines that one or more new series or
subseries of bonds in an aggegate principal amount not to exceed one hundred eighty-five
million dollars ($185,000,000) is necessary in order to finance (i) the refunding of all of the
outstanding Prior Bonds, (ii) the refunding of all or a portion of the outstanding CP Notes, (iii)
the reserve fund for such bonds, if any, (iv) swap termination payments, if any, (v) funds for
projects authorized in the Expenditure Plan, and (vi) the costs of issuance incurred in connection
with such bonds, and the Commission has determined that such bonds in an amount not to
exceed such principal amount shall be issued, secured by the Sales Tax Revenues and entitled,
"Riverside County Transportation Commission Sales Tax Revenue Bonds (Limited Tax Bonds),
Series 2009" (the "Series 2009 Bonds");
WHEREAS, the Commission hereby further determines that the Series 2009 Bonds shall
be issued pursuant to a Second Supplemental Indenture, amending and supplementing the
Indenture (the "Second Supplemental Indenture"), by and between the Commission and the
Trustee;
WHEREAS, there has been prepared and presented to the Commission a proposed form
of Second Supplemental Indenture;
WHEREAS, in order to minimize debt service and maximize benefits to the Commission
in connection with the issuance of the Series 2009 Bonds, it may be desirable to issue the Series
2009 Bonds as fixed rate bonds or as variable rate bonds (the "Variable Rate Bonds") and if the
bonds are issued as Variable Rate Bonds to enter into remarketing agreements (the "Remarketing
Agreements") with one or more remarketing agents to provide remarketing agent services with
respect to the Series 2009 Bonds;
OHS West260692474.6
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WHEREAS, in order to set forth the terns of sale of the Series 2009 Bonds, the
Commission proposes to enter into one or more bond purchase agreements (the "Purchase
Contracts") with Barclays Capital Inc., E.J. De La Rosa & Co., Inc. and Backstrom McCarley
Berry & Co., LLC (collectively, the "Purchasers");
WHEREAS, the Purchasers have caused to be prepared and submitted to the
Commission proposed forms of the Purchase Contracts and the Remarketing Agreements;
WHEREAS, in order to provide liquidity support for the Series 2009 Bonds that are
Variable Rate Bonds, the Commission may enter into one or more standby bond purchase
agreements or other liquidity support agreements (each a "Liquidity Facility" and, collectively,
the "Liquidity Facilities"), containing such terms and conditions as the Executive Director of the
Commission (the "Executive Director") or the Chief Financial Officer of the Commission (the
"Chief Financial Officer") considers appropriate and with a bank or other financial institution or
association (each a "Liquidity Provider" and, collectively, the "Liquidity Providers") to be
selected by the Executive Director or Chief Financial Officer in the event a Liquidity Facility is
determined to be beneficial to the marketing of the Series 2009 Bonds;
WHEREAS, a proposed form of the Liquidity Facilities has been prepared and submitted
to the Commission;
WHEREAS, in order to provide information about the Series 2009 Bonds and related
matters to purchasers and potential purchasers of the Series 2009 Bonds, the Commission
proposes to execute and deliver an official statement (the "Official Statement");
WHEREAS, there has been prepared and presented to the Commission a proposed form
of Official Statement (the "Official Statement') and a proposed form of Continuing Disclosure
Agreement (the "Continuing Disclosure Agreement');
WHEREAS, the Commission has been presented with proposed forms of the Second
Supplemental Indenture, the Purchase Contracts, the Continuing Disclosure Agreement, the
Remarketing Agreements, the Liquidity Facilities and the Official Statement relating to the
financing described herein (the "Financing"), and the Commission has examined and approved
each document and desires to authorize and direct the execution of such documents as are
specified herein and such other documents as are necessary in connection with the Financing and
to authorize and direct the consummation of the Financing; and
WHEREAS, all acts, conditions and things required by the Law and the Constitution and
laws of the State of California to exist, to have happened and to have been performed precedent
to and in connection with the issuance of the Series 2009 Bonds and consummation of the
Financing authorized hereby do exist, have happened and have been performed in regular and
due time, form and manner as required by law, and the Commission is now duly authorized and
empowered, pursuant to each and every requirement of law, to authorize such Financing and to
authorize the execution of the Second Supplemental Indenture, the Purchase Contracts, one or
more Liquidity Facilities, the Official Statement, the Continuing Disclosure Agreement and the
Remarketing Agreements for the purposes, in the manner and upon the terms provided;
OHS West:260692474.6
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13
NOW THEREFORE, THE RIVERSIDE COUNTY TRANSPORTATION
COMMISSION RESOLVES:
Section 1. The Commission finds and determines that the foregoing recitals are true
and correct.
Section 2. The issuance by the Commission of not to exceed $185,000,000 aggregate
principal amount of Riverside County Transportation Commission Sales Tax Revenue Bonds
(Limited Tax Bonds), Series 2009, in accordance with the provisions set forth in the Indenture, in
one or more series or subseries, is hereby authorized and approved.
Section 3. The proposed form of Second Supplemental Indenture presented to this
meeting and the terms and conditions thereof are hereby approved. The structure, date, maturity
date or dates (not to exceed June 1, 2029), fixed or variable interest rate or rates (such rates not
to exceed a maximum of 12% per annum) or methods of determining the same, interest payment
dates, forms, registration privileges, place or places of payment, terms of redemption, tender,
mandatory purchase, additional series designation and number thereof and other terms of the
Series 2009 Bonds shall be (subject to the foregoing limitations) as provided in the Indenture and
the Second Supplemental Indenture as finally executed and delivered.
The Executive Director is hereby authorized and directed, for and in the name and on
behalf of the Commission, to execute and deliver the Second Supplemental Indenture, in
substantially said form, with such changes therein, including without limitation changes
necessary to issue the Series 2009 Bonds as fixed rate bonds, as the officer executing the same
may require or approve, such approval to be conclusively evidenced by the execution and
delivery thereof.
Section 4. The proposed form of the Purchase Contracts presented to this meeting
and the terms and conditions thereof are hereby approved. The Executive Director is hereby
authorized and directed, for and in the name and on behalf of the Commission, to sell the Series
2009 Bonds to the Purchasers pursuant to one or more Purchase Contracts with the Purchasers'
compensation not to exceed 0.5% of the principal amount of the Series 2009 Bonds and to
execute and deliver one or more Purchase Contracts, in substantially said form, with such
changes therein as the officer executing the same may require or approve, such approval to be
conclusively evidenced by the execution and delivery thereof.
Section 5. The proposed form of the Liquidity Facilities presented to this meeting
and the terms and conditions thereof are hereby approved. The Executive Director is hereby
authorized to negotiate with Liquidity Providers one or more Liquidity Facilities for the Series
2009 Bonds, and, if the Executive Director, with the advice of Fieldman, Rolapp & Associates
(the "Financial Advisor"), determines that doing so is in the best interests of the Commission, to
enter into such Liquidity Facilities in substantially said form, with such changes therein as the
officer executing the same may require or approve, such approval to be conclusively evidenced
by the execution and delivery thereof.
Section 6. The proposed form of Official Statement presented to this meeting is
hereby approved. The Executive Director is hereby authorized and directed to execute and
OHS West:260692474.6
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•
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14
deliver to the Purchasers a certificate deeming the Official Statement, in substantially the form
on file with the Clerk and presented to this meeting and with such changes as the Executive
Director approves in the interest of the Commission, final within the meaning of Securities
Exchange Commission Rule 15c2-12. The Purchasers are hereby authorized to distribute the
Official Statement in the form so deemed final by the Executive Director, including a
preliminary form of the Official Statement, if the Executive Director determines such
distribution is appropriate for the sale of the Series 2009 Bonds. The Executive Director is
hereby authorized and directed, for and in the name and on behalf of the Commission, to execute
and deliver the Official Statement, in final form, in substantially said form, with such changes
therein as the officer executing the same may require or approve, such approval to be
conclusively evidenced by the execution and delivery thereof.
Section 7. The proposed form of Continuing Disclosure Agreement presented to this
meeting is hereby approved. If the Executive Director determines that doing so is in the best
interests of the Commission, the Executive Director is hereby authorized and directed, for and in
the name and on behalf of the Commission, to execute and deliver the Continuing Disclosure
Agreement in substantially said form, with such changes therein as such officer executing the
same may require or approve, such approval to be conclusively evidenced by the execution and
delivery thereof.
Section 8. The proposed form of Remarketing Agreements presented to this meeting
is hereby approved. If the Executive Director determines that issuing the Series 2009 Bonds as
Variable Rate Bonds is in the best interests of the Commission, the Executive Director is hereby
authorized and directed, for and in the name and on behalf of the Commission, to execute and
deliver one or more Remarketing Agreements with such remarketing agents as the Executive
Director shall designate in substantially said form, with such changes therein as such officer
executing the same may require or approve, such approval to be conclusively evidenced by the
execution and delivery thereof.
Section 9. The Executive Director is hereby authorized to negotiate with financial
institutions and/or insurance companies, as applicable, an irrevocable letter of credit, or a surety
bond, or an insurance policy, and, if the Executive Director, with the advice of the Financial
Advisor, determines that doing so is in the best interest of the Commission, to secure such
irrevocable letter of credit, surety bond, or insurance policy on such terms as the Executive
Director, with the advice of the Financial Advisor, determines are appropriate, in order to fiend
any bond reserve fund established pursuant to the Indenture or the Second Supplemental
Indenture.
Section 10. The Executive Director is hereby authorized to enter into or to instruct the
Trustee to enter into, with the advice of the Financial Advisor, one or more investment
agreements, float contracts, swaps or other hedging products or to terminate or revise the
Existing Swaps (hereinafter collectively referred to as "Hedge Agreements") providing for the
hedging of interest rate or the investment of moneys in any of the funds and accounts created
under the Indenture or the Second Supplemental Indenture, on such terms as the Executive
Director shall deem appropriate. Pursuant to Section 5922 of the California Government Code,
the Commission hereby finds and determines that the Hedge Agreements will reduce the amount
and duration of interest rate risk with respect to amounts invested pursuant to the Hedge
OHS West:260692474.6
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15
Agreements and/or is designed to reduce the amount or duration of payment, rate, spread or
similar risk or result in a lower cost of borrowing when used in combination with the Existing
Swaps and the Series 2009 Bonds or enhance the relationship between risk and retum with
respect to investments.
Section 11. All approvals, consents, directions, notices, orders, requests and other
actions permitted or required by any of the documents authorized by this Resolution, the CP
Notes or the Existing Swaps, whether before or after the issuance of the Series 2009 Bonds,
including, without limitation, any amendment of any of the documents authorized by this
Resolution or the Existing Swaps or other agreement related thereto, and any of the foregoing
that may be necessary or desirable in connection with any Liquidity Facilities or the extension or
replacement thereof, or any reserve facility, any investment of proceeds of the Series 2009
Bonds, or in connection with the addition, substitution or replacement of underwriters or
remarketing agents, or any agreements with paying agents, escrow agents or verification agents,
the removal or replacement of the Trustee or any similar action may be given or taken by an
Authorized Representative (as such term is defined in the Indenture), without further
authorization or direction by the Commission, and each Authorized Representative is hereby
authorized and directed to give any such approval, consent, direction, notice, order, request, or
other action and to execute such documents and take any such action which such Authorized
Representative may deem necessary or desirable to further the purposes of this Resolution.
Section 12. All actions heretofore taken by the officers and agents of the Commission
with respect to the Financing and the issuance and sale of the Series 2009 Bonds are hereby
ratified, confirmed and approved. If at the time of execution of any of the documents authorized
herein, the Executive Director is unavailable, such documents may be executed by the Deputy
Executive Director of the Commission or the Chief Financial Officer in lieu of the Executive
Director. The Chief Financial Officer of the Commission shall act as the Auditor -Controller of
the Commission for execution of the Series 2009 Bonds. The Clerk of the Board of the
Commission is hereby authorized to attest to the execution by the Executive Director or the
Deputy Executive Director or the Chief Financial Officer of any of such documents as said
officers deem appropriate.
The proper officers and agents of the Commission are hereby authorized and directed,
jointly and severally, for and in the name and on behalf of the Commission, to do any and all
things and to take any and all actions and to execute and deliver any and all agreements,
certificates and documents, including, without limitation, any tax certificates or agreements, any
agreements for depository or verification services, and any agreements for rebate compliance
services, which they, or any of them, may deem necessary or advisable in order to consummate
the Financing and the issuance and sale of the Series 2009 Bonds and otherwise to carry out, give
effect to and comply with the terms and intent of the Ordinance, this Resolution, the Series 2009
Bonds and the documents approved hereby.
OHS West260692474.6
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"
S e c t i o n 1 3 . T h i s R e s o l u t i o n s h a l l t a k e e f f e c t i m m e d i a t e l y u p o n i t s a d o p t i o n a n d
a p p r o v a l .
A P P R O V E D A N D A D O P T E D b y t h e R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n a t
i t s m e e t i n g o n A u g u s t 1 2 , 2 0 0 9 .
A T T E S T :
B y :
C l e r k o f t h e B o a r d o f t h e C o m m i s s i o n
O H S W e s t . 2 6 0 6 9 2 4 7 4 . 6
B y :
C h a i r m a n , B o a r d o f C o m m i s s i o n e r s
- 7 -
1 7
CERTIFICATE OF THE CLERK OF THE BOARD OF THE
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
I, Jennifer Harmon, Clerk of the Board of the Riverside County Transportation
Commission (the "Commission"), hereby certify that the foregoing is a full, true and correct
copy of a resolution duly adopted at a meeting of the governing board of said Commission duly
and regularly held in Riverside, California, on August 12, 2009, of which meeting all of the
members of said Commission had due notice.
I further certify that I have carefully compared the foregoing copy with the original
minutes of said meeting on file and of record in my office; that said copy is a full, true and
correct copy of the original resolution adopted at said meeting and entered in said minutes; and
that said resolution has not been amended, modified, rescinded or revoked in any manner since
the date of its adoption, and the same is now in full force and effect.
I further certify that an agenda of said meeting was posted at least 72 hours before said
meeting at a location in Riverside, California, freely accessible to the public and a brief general
description of the resolution to be adopted at said meeting appeared on said agenda.
IN WITNESS WHEREOF, I have executed this certificate hereto as of this date,
, 2009.
OHS West:260692474.6
By
Clerk
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Y2-cent sales tax that became effective on July 1, 2009 (the "Sales Tax"), less certain administrative fees paid to the California
State Board of Equalization), as described herein. The Sales Tax was approved by more than a two-thirds vote of the electorate of
the County of Riverside on November 5, 2002 and is scheduled to expire on June 30, 2039.
NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE COUNTY OF RIVERSIDE, THE STATE
OF CALIFORNIA OR ANY POLITICAL SUBDIVISION OR PUBLIC AGENCY THEREOF, OTHER THAN THAT OF THE
COMMISSION TO THE EXTENT OF THE PLEDGE OF THE REVENUES, IS PLEDGED TO THE PAYMENT OF THE
PRINCIPAL OF, PURCHASE PRICE, OR INTEREST ON THE 2009 BONDS.
This cover page contains certain information for general reference only. It is not a summary of the security or terms
of this issue. Investors must read the entire Official Statement to obtain information essential to make an informed
investment decision with respect to the 2009 Bonds.
The 2009 Bonds are offered when, as and if issued and received by the Underwriters, subject to the approval of validity by
Orrick, Herrington & Sutcliffe as Bond Counsel, and certain other conditions. Certain legal matters will be passed on for the
Commission by Fulbright & Jaworski L.L.P., Los Angeles, Califomia, as Disclosure Counsel, and by Best Best & Krieger LLP,
Riverside, Califomia, the Commission's General Counsel. Certain legal matters will be passed upon for the Underwriters by
Hawkins Delafield & Wood, San Francisco, Califomia. It is anticipated that the 2009 Bonds will be available for delivery through
the book -entry facilities ofDTC on or about October , 2009.
Barclays Capital
Underwriter and Remarketing Agent
for the 2009 Series A Bonds
De La Rosa & Co. Backstrom McCarley Berry & Co., LLC
Underwriter and Remarketing Agent
for the 2009 Series B Bonds
Underwriter and Remarketing Agent
for the 2009 Series C Bonds
Dated: September _ 2009
t CUSIP numbers are provided for convenience of reference only. Neither the Commission nor the Underwriters take any responsibility for the
accuracy of such numbers.
•
75783979.5
20
"
N o d e a l e r , s a l e s m a n o r a n y o t h e r p e r s o n h a s b e e n a u t h o r i z e d b y t h e R i v e r s i d e C o u n t y
T r a n s p o r t a t i o n C o m m i s s i o n ( t h e " C o m m i s s i o n " ) o r t h e U n d e r w r i t e r s o f t h e 2 0 0 9 B o n d s ( t h e
" U n d e r w r i t e r s " ) t o g i v e a n y i n f o r m a t i o n o r t o m a k e a n y r e p r e s e n t a t i o n s , o t h e r t h a n t h o s e
c o n t a i n e d i n t h i s O f f i c i a l S t a t e m e n t , a n d , i f g i v e n o r m a d e , s u c h o t h e r i n f o r m a t i o n o r
r e p r e s e n t a t i o n s m u s t n o t b e r e l i e d u p o n a s h a v i n g b e e n a u t h o r i z e d b y t h e C o m m i s s i o n o r t h e
U n d e r w r i t e r s .
T h i s O f f i c i a l S t a t e m e n t d o e s n o t c o n s t i t u t e a n o f f e r t o s e l l o r t h e s o l i c i t a t i o n o f a n o f f e r t o
b u y n o r s h a l l t h e r e b e a n y s a l e o f t h e 2 0 0 9 B o n d s b y a p e r s o n i n a n y j u r i s d i c t i o n i n w h i c h i t i s
u n l a w f u l f o r s u c h p e r s o n t o m a k e s u c h a n o f f e r , s o l i c i t a t i o n o r s a l e . T h i s O f f i c i a l S t a t e m e n t i s
n o t t o b e c o n s t r u e d a s a c o n t r a c t w i t h t h e p u r c h a s e r s o f t h e 2 0 0 9 B o n d s . N e i t h e r t h e d e l i v e r y o f
t h i s O f f i c i a l S t a t e m e n t n o r t h e s a l e o f a n y o f t h e 2 0 0 9 B o n d s i m p l i e s t h a t t h e i n f o r m a t i o n h e r e i n
i s c o r r e c t a s o f a n y t i m e s u b s e q u e n t t o t h e d a t e h e r e o f . T h e i n f o r m a t i o n a n d e x p r e s s i o n s o f
o p i n i o n h e r e i n a r e s u b j e c t t o c h a n g e w i t h o u t n o t i c e , a n d n e i t h e r t h e d e l i v e r y o f t h i s O f f i c i a l
S t a t e m e n t n o r a n y s a l e m a d e h e r e u n d e r s h a l l , u n d e r a n y c i r c u m s t a n c e s , c r e a t e t h e i m p l i c a t i o n
t h a t t h e r e h a s b e e n n o c h a n g e i n t h e m a t t e r s d e s c r i b e d h e r e i n s i n c e t h e d a t e h e r e o f . T h i s O f f i c i a l
S t a t e m e n t i s s u b m i t t e d i n c o n n e c t i o n w i t h t h e s a l e o f s e c u r i t i e s r e f e r r e d t o h e r e i n a n d m a y n o t b e
r e p r o d u c e d o r b e u s e d , a s a w h o l e o r i n p a r t , f o r a n y o t h e r p u r p o s e .
T h e i n f o r m a t i o n s e t f o r t h h e r e i n h a s b e e n o b t a i n e d f r o m t h e C o m m i s s i o n a n d o t h e r
s o u r c e s b e l i e v e d t o b e r e l i a b l e . T h e i n f o r m a t i o n a n d e x p r e s s i o n s o f o p i n i o n s h e r e i n a r e s u b j e c t
t o c h a n g e w i t h o u t n o t i c e a n d n e i t h e r d e l i v e r y o f t h e O f f i c i a l S t a t e m e n t n o r a n y s a l e m a d e
h e r e u n d e r s h a l l , u n d e r a n y c i r c u m s t a n c e s , c r e a t e a n y i m p l i c a t i o n t h a t t h e r e h a s b e e n n o c h a n g e i n
t h e a f f a i r s o f t h e C o m m i s s i o n s i n c e t h e d a t e h e r e o f . A l l s u m m a r i e s c o n t a i n e d h e r e i n o f t h e
I n d e n t u r e ( a s d e f i n e d h e r e i n ) o r o t h e r d o c u m e n t s a r e m a d e s u b j e c t t o t h e p r o v i s i o n s o f s u c h
d o c u m e n t s a n d d o n o t p u r p o r t t o b e c o m p l e t e s t a t e m e n t s o f a n y o r a l l o f s u c h p r o v i s i o n s . A l l
s t a t e m e n t s m a d e h e r e i n a r e m a d e a s o f t h e d a t e o f t h i s d o c u m e n t b y t h e C o m m i s s i o n e x c e p t
s t a t i s t i c a l i n f o r m a t i o n o r o t h e r s t a t e m e n t s w h e r e s o m e o t h e r d a t e i s i n d i c a t e d i n t h e t e x t .
T h e U n d e r w r i t e r s h a v e p r o v i d e d t h e f o l l o w i n g s e n t e n c e f o r i n c l u s i o n i n t h i s O f f i c i a l
S t a t e m e n t . T h e U n d e r w r i t e r s h a v e r e v i e w e d t h e i n f o r m a t i o n i n t h i s O f f i c i a l S t a t e m e n t i n
a c c o r d a n c e w i t h , a n d a s p a r t o f , i t s r e s p o n s i b i l i t i e s t o i n v e s t o r s u n d e r t h e f e d e r a l s e c u r i t i e s l a w s
a s a p p l i e d t o t h e f a c t s a n d c i r c u m s t a n c e s o f t h i s t r a n s a c t i o n , b u t t h e U n d e r w r i t e r s d o n o t
g u a r a n t e e t h e a c c u r a c y o r c o m p l e t e n e s s o f s u c h i n f o r m a t i o n .
I N C O N N E C T I O N W I T H T H I S O F F E R I N G , T H E U N D E R W R I T E R S M A Y
O V E R A L L O T O R E F F E C T T R A N S A C T I O N S W H I C H S T A B I L I Z E O R M A I N T A I N T H E
M A R K E T P R I C E O F T H E 2 0 0 9 B O N D S A T A L E V E L A B O V E T H A T W H I C H M I G H T
O T H E R W I S E P R E V A I L O N T H E O P E N M A R K E T . S U C H S T A B I L I Z I N G , I F
C O M M E N C E D , M A Y B E D I S C O N T I N U E D A T A N Y T I M E . T H E U N D E R W R I T E R S M A Y
O F F E R A N D S E L L T H E 2 0 0 9 B O N D S T O C E R T A I N D E A L E R S A N D O T H E R S A T P R I C E S
L O W E R T H A N T H E P U B L I C O F F E R I N G P R I C E S T A T E D O N T H E C O V E R P A G E
H E R E O F A N D S U C H P U B L I C O F F E R I N G P R I C E M A Y B E C H A N G E D F R O M T I M E T O
T I M E B Y T H E U N D E R W R I T E R S .
7 5 7 8 3 9 7 9 . 5
2 1
FORWARD -LOOKING STATEMENTS
Certain statements included or incorporated by reference in this Official Statement
constitute forward -looking statements. Such statements are generally identifiable by the
terminology used such as "plan," "expect," "estimate," "project," "budget" or other similar
words. The achievement of certain results or other expectations contained in such forward -
looking statements involve known and unknown risks, uncertainties and other factors which may
cause actual results, performance or achievements described to be materially different from any
future results, performance or achievements expressed or implied by such forward -looking
statements. No assurance is given that actual results will meet the forecasts of the Commission
in any way, regardless of the level of optimism communicated in the information. The
Commission is not obligated to issue any updates or revisions to the forward -looking statements
if or when its expectations, or events, conditions or circumstances on which such statements are
based occur.
THE ACHIEVEMENT OF CERTAIN RESULTS OR OTHER EXPECTATIONS
CONTAINED IN SUCH FORWARD LOOKING STATEMENTS INVOLVE KNOWN AND
UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE
ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS DESCRIBED TO BE
MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR
ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD -LOOKING
STATEMENTS. THE COMMISSION DOES NOT PLAN TO ISSUE ANY UPDATES OR
REVISIONS TO THOSE FORWARD -LOOKING STATEMENTS IF OR WHEN ANY OF ITS
EXPECTATIONS, OR EVENTS, CONDITIONS OR CIRCUMSTANCES ON WHICH SUCH
STATEMENTS ARE BASED OCCUR.
75783979.5
•
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22
"
"
R I V E R S I D E C O U N T Y T R A N S P O R T A T I O N C O M M I S S I O N
B O A R D M E M B E R S
B o b M a g e e , C h a i r
B o b B u s t e r , I s t V i c e C h a i r G r e g o r y S . P e t t i s , 2 n d V i c e C h a i r
M a r i o n A s h l e y
J e f f S t o n e
J o h n F . T a v a g l i o n e
R o y W i l s o n
B o b B o t t s
R o g e r B e r g
J o s e p h D e C o n i n c k
R a y Q u i n t o
M a r y C r a t o n
E d u a r d o G a r c i a
K a r e n S p i e g e l
S c o t t M a t a s
R o b i n L o w e
P a t r i c k J . M u l l a n y
M A N A G E M E N T
E x e c u t i v e D i r e c t o r
A n n e M a y e r
D e p u t y E x e c u t i v e D i r e c t o r
J o h n S t a n d i f o r d
C h i e f F i n a n c i a l O f f i c e r
T h e r e s i a T r e v i n o
S P E C I A L S E R V I C E S
F i n a n c i a l A d v i s o r
F i e l d m a n , R o l a p p & A s s o c i a t e s
I r v i n e , C a l i f o r n i a
G l e n n M i l l e r
T e r r y H e n d e r s o n
D a r c y K u e n z i
J e s s e M o l i n a
R i c k G i b b s
F r a n k H a l l
J i m F e r g u s o n
S t e v e P o u g n e t
D a r y l R . B u s c h
R o n M e e p o s
S t e v e A d a m s
J a m e s P o t t s
R o n R o b e r t s
S c o t t F a r n a m
R a y W o l f e
B o n d C o u n s e l D i s c l o s u r e C o u n s e l
O r r i c k , H e r r i n g t o n & S u t c l i f f e L L P
S a n F r a n c i s c o , C a l i f o r n i a
7 5 7 8 3 9 7 9 5
T r u s t e e
F u l b r i g h t & J a w o r s k i L . L . P .
L o s A n g e l e s , C a l i f o r n i a
V e r i f i c a t i o n A g e n t
U . S . B a n k N a t i o n a l A s s o c i a t i o n [ t o c o m e ]
L o s A n g e l e s , C a l i f o r n i a
2 3
TABLE OF CONTENTS
Page
INTRODUCTION 1
General 1
Authority for Issuance 1
Purpose and Application of Proceeds 2
The 2009 Bonds 2
Security for the 2009 Bonds 2
Liquidity Facility 3
2009 Bonds Reserve Fund 3
Existing Swaps 3
Continuing Disclosure 3
References 4
THE 2009 BONDS 4
General 4
Weekly Rate 5
Conversion of Interest Rate 5
Redemption 7
General Redemption Provisions g
Tender Provisions 9
SPECIAL CONSIDERATIONS RELATING TO THE 2009 BONDS SUBJECT TO
OPTIONAL TENDER AND REMARKETING 12
The Remarketing Agents are Paid by the Commission 12
The Remarketing Agents Routinely Purchase 2009 Bonds for their Own Account 12
2009 Bonds May Be Offered at Different Prices on Any Date Including a Rate
Determination Date 12
The Ability to Sell the 2009 Bonds Other Than through Tender Process May Be
Limited 13
No Remarketing Agent Successor in Certain Circumstances 13
PLAN OF REFUNDING 13
ESTIMATED SOURCES AND USES OF PROCEEDS 14
SECURITY AND SOURCES OF PAYMENT FOR THE 2009 BONDS 14
Limited Obligation 14
Pledge of Revenues 14
Revenue Fund; Allocation of Revenues 15
2009 Bonds Reserve Fund 17
Additional Bonds and Parity Obligations 17
Existing Swap Agreements 19
Subordinate Obligations 20
75783979.5
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TABLE OF CONTENTS
(continued)
Page
THE LIQUIDITY FACILITY 21
THE LIQUIDITY PROVIDER 21
THE SALES TAX 21
General 21
Collection of Sales Tax Revenues 22
1988 Sales Tax Revenues 23
RIVERSIDE COUNTY TRANSPORTATION COMMISSION 24
General 24
Commissioners 25
Executive Staff 26
THE TRANSPORTATION EXPENDITURE PLAN 26
RISK FACTORS 27
Economy of the County and the State 27
Limitations of the Liquidity Facility 28
The Sales Tax 29
Proposition 218 29
Further Initiatives 29
Loss of Tax Exemption 29
FINANCIAL STATEMENTS 30
VERIFICATION OF MATHEMATICAL COMPUTATIONS 30
LITIGATION 30
TAX MATTERS 30
CERTAIN LEGAL MATTERS 32
RATINGS 33
REMARKETING AGENTS 33
UNDERWRITING 33
FINANCIAL ADVISOR 34
CONTINUING DISCLOSURE 34
MISCELLANEOUS 34
75783979.5
11
•
•
25
"
"
"
A P P E N D I X A -
A P P E N D I X B -
A P P E N D I X C -
A P P E N D I X D - -
A P P E N D I X E -
A P P E N D I X F -
7 5 7 8 3 9 7 9 . 5
T A B L E O F C O N T E N T S
( c o n t i n u e d )
P a g e
- C o m m i s s i o n A u d i t e d F i n a n c i a l S t a t e m e n t s F o r F i s c a l Y e a r E n d e d
J u n e 3 0 , 2 0 0 8 A - 1
- C o u n t y D e m o g r a p h i c a n d E c o n o m i c I n f o r m a t i o n B - 1
- S u m m a r y o f C e r t a i n P r o v i s i o n s o f t h e I n d e n t u r e C - 1
B o o k - E n t r y S y s t e m D - 1
- P r o p o s e d F o r m o f B o n d C o u n s e l O p i n i o n E - 1
- P r o p o s e d F o r m o f C o n t i n u i n g D i s c l o s u r e A g r e e m e n t F - 1
l l l
a
2 6
"
"
"
O F F I C I A L S T A T E M E N T
$ 1 8 5 , 0 0 0 , 0 0 0
R I V E R S I D E C O U N T Y T R A N S P O R T A T I O N C O M M I S S I O N
S a l e s T a x R e v e n u e B o n d s
( L i m i t e d T a x B o n d s )
2 0 0 9 S e r i e s
S
R I V E R S I D E C O U N T Y
T R A N S P O R T A T I O N
C O M M I S S I O N
S a l e s T a x R e v e n u e B o n d s
( L i m i t e d T a x B o n d s )
2 0 0 9 S e r i e s A B o n d s
C U S I P N o . 1
G e n e r a l
S
R I V E R S I D E C O U N T Y
T R A N S P O R T A T I O N
C O M M I S S I O N
S a l e s T a x R e v e n u e B o n d s
( L i m i t e d T a x B o n d s )
2 0 0 9 S e r i e s B B o n d s
C U S I P N o . r
I N T R O D U C T I O N
R I V E R S I D E C O U N T Y
T R A N S P O R T A T I O N
C O M M I S S I O N
S a l e s T a x R e v e n u e B o n d s
( L i m i t e d T a x B o n d s )
2 0 0 9 S e r i e s C B o n d s
C U S I P N o !
T h i s O f f i c i a l S t a t e m e n t , w h i c h i n c l u d e s t h e c o v e r p a g e a n d t h e a p p e n d i c e s h e r e t o , s e t s
f o r t h c e r t a i n i n f o r m a t i o n i n c o n n e c t i o n w i t h t h e o f f e r i n g b y t h e R i v e r s i d e C o u n t y T r a n s p o r t a t i o n
C o m m i s s i o n ( t h e " C o m m i s s i o n ' ) o f $ 1 8 5 , 0 0 0 , 0 0 0 p r i n c i p a l a m o u n t o f R i v e r s i d e C o u n t y
T r a n s p o r t a t i o n C o m m i s s i o n S a l e s T a x R e v e n u e B o n d s ( L i m i t e d T a x B o n d s ) , 2 0 0 9 S e r i e s A ( t h e
" 2 0 0 9 S e r i e s A B o n d s " ) , $ p r i n c i p a l a m o u n t o f R i v e r s i d e C o u n t y T r a n s p o r t a t i o n
C o m m i s s i o n S a l e s T a x R e v e n u e B o n d s ( L i m i t e d T a x B o n d s ) , 2 0 0 9 S e r i e s B ( t h e " 2 0 0 9 S e r i e s B
B o n d s " ) a n d $ p r i n c i p a l a m o u n t o f R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n
S a l e s T a x R e v e n u e B o n d s ( L i m i t e d T a x B o n d s ) , 2 0 0 9 S e r i e s C ( t h e " 2 0 0 9 S e r i e s C B o n d s " a n d ,
t o g e t h e r w i t h t h e S e r i e s A B o n d s a n d t h e S e r i e s B B o n d s , t h e " 2 0 0 9 B o n d s " ) . A s u s e d h e r e i n , t h e
t e r m " B o n d s " m e a n s a n y B o n d s , i n c l u d i n g t h e 2 0 0 9 B o n d s , i s s u e d p u r s u a n t t o t h e I n d e n t u r e ( a s
d e f i n e d b e l o w ) .
A u t h o r i t y f o r I s s u a n c e
T h e 2 0 0 9 B o n d s a r e b e i n g i s s u e d b y t h e C o m m i s s i o n u n d e r a n d p u r s u a n t t o t h e R i v e r s i d e
C o u n t y T r a n s p o r t a t i o n S a l e s T a x A c t , b e i n g D i v i s i o n 2 5 o f t h e P u b l i c U t i l i t i e s C o d e o f t h e S t a t e
o f C a l i f o r n i a ( S e c t i o n 2 4 0 0 0 0 e t s e q . ) ( t h e " A c t ' ) , t h e T r a n s p o r t a t i o n E x p e n d i t u r e P l a n a n d
R e t a i l T r a n s a c t i o n a n d U s e T a x O r d i n a n c e , a d o p t e d b y t h e C o m m i s s i o n o n M a y 8 , 2 0 0 2 a n d
a p p r o v e d b y a t l e a s t t w o - t h i r d s o f e l e c t o r s v o t i n g o n s u c h p r o p o s i t i o n i n t h e N o v e m b e r 5 , 2 0 0 2
e l e c t i o n , a n d a n y a m e n d m e n t s o r e x t e n s i o n s t h e r e t o ( c o l l e c t i v e l y , a n d t o g e t h e r w i t h t h e A c t , t h e
" L a w " ) , a n I n d e n t u r e , d a t e d a s o f J u n e 1 , 2 0 0 8 ( t h e " 2 0 0 8 I n d e n t u r e " ) , t h e F i r s t S u p p l e m e n t a l
I n d e n t u r e , d a t e d a s o f J u n e 1 , 2 0 0 8 ( t h e " F i r s t S u p p l e m e n t a l I n d e n t u r e " ) , a n d t h e S e c o n d
S u p p l e m e n t a l I n d e n t u r e , d a t e d a s o f O c t o b e r 1 , 2 0 0 9 ( t h e " S e c o n d S u p p l e m e n t a l I n d e n t u r e " a n d ,
t o g e t h e r w i t h t h e 2 0 0 8 I n d e n t u r e a n d t h e F i r s t S u p p l e m e n t a l I n d e n t u r e , t h e " I n d e n t u r e " ) , e a c h
b e t w e e n t h e C o m m i s s i o n a n d U . S . B a n k N a t i o n a l A s s o c i a t i o n , a s t r u s t e e ( t h e " T r u s t e e " ) . A l l
c a p i t a l i z e d t e r m s u s e d a n d n o t o t h e r w i s e d e f i n e d h e r e i n s h a l l h a v e t h e m e a n i n g s a s s i g n e d t o s u c h
7 5 7 8 3 9 7 9 . 5 1
2 7
terms in "APPENDIX C — SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE"
or in the Indenture.
Purpose and Application of Proceeds
The proceeds of the 2009 Bonds will be applied to (i) refund all of the Commission's
Sales Tax Revenue Bonds (Limited Tax Bonds) Series 2008, currently outstanding in the
aggregate principal amount of $126,395,000 (the "Refunded Bonds"), (ii) retire a portion of the
Commission's outstanding Commercial Paper Notes (Limited Tax Bonds), Series A (the
"Notes"), in the principal amount of $50,000,000, (iii) fund a [portion of a] reserve for the 2009
Bonds, and (iv) pay costs of issuance of the 2009 Bonds. See "PLAN OF REFUNDING" and
"ESTIMATED SOURCES AND USES OF PROCEEDS" herein.
The 2009 Bonds
The 2009 Bonds will be dated their date of delivery and initially will bear interest at a
Weekly Rate during a Weekly Rate Period. Interest on the 2009 Bonds during a Weekly Rate
Period will be payable on the first Business Day of each calendar month, commencing
November 2, 2009. The 2009 Bonds are initially being issued as fully registered bonds without
coupons in the denominations of $100,000 and any integral multiple of $5,000 in excess thereof.
The 2009 Bonds will be registered in the name of Cede & Co., as holder of the 2009 Bonds and
nominee for The Depository Trust Company ("DTC"). Purchasers will not receive physical
certificates representing their interest in the 2009 Bonds purchased.
This Official Statement describes terms of the 2009 Bonds only during a Weekly
Rate Period. There are significant differences in the terms of the 2009 Bonds bearing
interest using other Interest Rate Determination Methods. This Official Statement is not
intended to provide information with respect to the 2009 Bonds bearing interest at a Rate
other than a Weekly Rate.
The 2009 Bonds will be subject to optional and mandatory sinking fund redemption and
to optional and mandatory tender for purchase. See "THE 2009 BONDS" herein.
Security for the 2009 Bonds
The 2009 Bonds are limited obligations of the Commission payable from and secured by
certain revenues (the "Revenues") pledged under the Indenture, including a pledge of revenues
(the "Sales Tax Revenues") derived from a 1/4-cent sates tax that became effective on July 1,
2009 (the "Sales Tax"), imposed in the County of Riverside, California (the "County") in
accordance with the Law and the California Transactions and Use Tax Law (Revenue and
Taxation Code Section 7251 et seq.), net of an administrative fee paid to the California State
Board of Equalization (the "Board of Equalization") in connection with the collection and
disbursement of the Sales Tax. The Sales Tax was approved by more than a two-thirds vote of
the electorate of the County on November 5, 2002 and is scheduled to expire on June 30, 2039.
75783979.5 2
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"
N E I T H E R T H E F A I T H A N D C R E D I T N O R T H E T A X I N G P O W E R O F T H E
C O U N T Y O F R I V E R S I D E , T H E S T A T E O F C A L I F O R N I A O R A N Y P O L I T I C A L
S U B D I V I S I O N O R P U B L I C A G E N C Y T H E R E O F , O T H E R T H A N T H E C O M M I S S I O N T O
T H E E X T E N T O F T H E P L E D G E O F T H E R E V E N U E S , I S P L E D G E D T O T H E P A Y M E N T
O F T H E 2 0 0 9 B O N D S .
L i q u i d i t y F a c i l i t y
P a y m e n t o f t h e p u r c h a s e p r i c e o f t e n d e r e d 2 0 0 9 B o n d s w i l l b e p a y a b l e f r o m t h e p r o c e e d s
o f r e m a r k e t i n g o f t h e 2 0 0 9 B o n d s a n d , t o t h e e x t e n t r e m a r k e t i n g p r o c e e d s a r e i n s u f f i c i e n t ,
i n i t i a l l y f r o m a m o u n t s a v a i l a b l e u n d e r t h e S t a n d b y B o n d P u r c h a s e A g r e e m e n t , d a t e d a s o f
O c t o b e r 1 , 2 0 0 9 ( t h e " L i q u i d i t y F a c i l i t y " ) , b y a n d b e t w e e n t h e C o m m i s s i o n a n d J P M o r g a n
C h a s e B a n k , N . A . ( t h e " L i q u i d i t y P r o v i d e r " ) , a n d t h e r e a f t e r f r o m s u c h A l t e m a t e L i q u i d i t y
F a c i l i t y a s m a y b e o b t a i n e d b y t h e C o m m i s s i o n t o p r o v i d e f o r p a y m e n t o f t h e p u r c h a s e p r i c e o f
t h e 2 0 0 9 B o n d s . T h e i n i t i a l L i q u i d i t y F a c i l i t y t e r m i n a t e s o n O c t o b e r _ , 2 0 1 1 , u n l e s s e x t e n d e d
o r t e r m i n a t e d s o o n e r i n a c c o r d a n c e w i t h i t s t e r m s . S e e " T H E L I Q U I D I T Y F A C I L I T Y " a n d
" T H E L I Q U I D I T Y P R O V I D E R " h e r e i n .
2 0 0 9 B o n d s R e s e r v e F u n d
T o m a k e u p a n y d e f i c i e n c y i n t h e I n t e r e s t F u n d o r t h e P r i n c i p a l F u n d r e l a t i n g t o t h e 2 0 0 9
B o n d s , t h e S e c o n d S u p p l e m e n t a l I n d e n t u r e e s t a b l i s h e s a 2 0 0 9 B o n d s R e s e r v e F u n d , t o b e
m a i n t a i n e d b y t h e T r u s t e e . T h e 2 0 0 9 B o n d s R e s e r v e F u n d w i l l b e f u n d e d i n i t i a l l y i n t h e a m o u n t
o f $ f r o m t h e p r o c e e d s o f t h e s a l e o f t h e 2 0 0 9 B o n d s [ a n d a m o u n t s t r a n s f e r r e d f r o m
t h e R e f u n d e d B o n d s ] , w h i c h a m o u n t i s e q u a l t o t h e 2 0 0 9 B o n d s R e s e r v e R e q u i r e m e n t u p o n
i s s u a n c e o f t h e 2 0 0 9 B o n d s . S e e " S E C U R I T Y A N D S O U R C E S O F P A Y M E N T F O R T H E
2 0 0 9 B O N D S 2 0 0 9 B o n d s R e s e r v e F u n d , " a n d " A P P E N D I X C S U M M A R Y O F C E R T A I N
P R O V I S I O N S O F T H E I N D E N T U R E D e f i n i t i o n s . "
E x i s t i n g S w a p s
T h e C o m m i s s i o n h a s e n t e r e d i n t o i n t e r e s t r a t e s w a p a g r e e m e n t s w i t h a c o m b i n e d n o t i o n a l
a m o u n t o f $ 1 8 5 , 0 0 0 , 0 0 0 ( s u b j e c t t o a m o r t i z a t i o n ) , w i t h a n e f f e c t i v e d a t e o f O c t o b e r 1 , 2 0 0 9 .
T h e s w a p s e x p i r e o n J u n e 1 , 2 0 2 9 . U n d e r t h e s w a p s , t h e C o m m i s s i o n h a s a g r e e d t o p a y a f i x e d
i n t e r e s t r a t e t o t h e s w a p p r o v i d e r s a n d t h e s w a p p r o v i d e r s h a v e a g r e e d t o p a y t h e C o m m i s s i o n a
f l o a t i n g r a t e o f i n t e r e s t . T h e C o m m i s s i o n ' s o b l i g a t i o n t o m a k e r e g u l a r l y s c h e d u l e d p a y m e n t s
u n d e r t h e s w a p s c o n s t i t u t e s a P a r i t y O b l i g a t i o n u n d e r t h e I n d e n t u r e . T h e C o m m i s s i o n ' s
o b l i g a t i o n t o p a y a n y e a r l y t e r m i n a t i o n a m o u n t s u n d e r t h e s w a p s i s s e c u r e d b y a p l e d g e o f S a l e s
T a x R e v e n u e s s u b o r d i n a t e t o t h e p l e d g e i n f a v o r o f t h e 2 0 0 9 B o n d s . S e e " S E C U R I T Y A N D
S O U R C E S O F P A Y M E N T F O R T H E 2 0 0 9 B O N D S E x i s t i n g S w a p A g r e e m e n t s " h e r e i n .
C o n t i n u i n g D i s c l o s u r e
T h e C o m m i s s i o n h a s v o l u n t a r i l y a g r e e d t o f o l l o w t h e r e q u i r e m e n t s o f R u l e 1 5 c 2 - 1 2 ( t h e
" R u l e " ) , p r o m u l g a t e d b y t h e U . S . S e c u r i t i e s a n d E x c h a n g e C o m m i s s i o n ( " S E C " ) p u r s u a n t t o t h e
S e c u r i t i e s E x c h a n g e A c t o f 1 9 3 4 , a s a m e n d e d , i n c o n n e c t i o n w i t h a C o n t i n u i n g D i s c l o s u r e
A g r e e m e n t ( t h e " C o n t i n u i n g D i s c l o s u r e A g r e e m e n t " ) , i n w h i c h t h e C o m m i s s i o n w i l l u n d e r t a k e ,
f o r t h e b e n e f i t o f t h e b e n e f i c i a l o w n e r s o f t h e 2 0 0 9 B o n d s , t o p r o v i d e c e r t a i n i n f o r m a t i o n t o t h e
7 5 7 8 3 9 7 9 . 5 3
2 9
Municipal Securities Rulemaking Board (the "MSRB") as set forth therein. See "APPENDIX F
— PROPOSED FORM OF CONTINUING DISCLOSURE AGREEMENT." The Commission
has never failed to comply in all material respects with any previous continuing disclosure
undertaking pursuant to the Rule to provide annual reports or notices of material events.
References
The descriptions and summaries of various documents hereinafter set forth do not purport
to be comprehensive or definitive, and reference is made to each such document for the complete
details of all terms and conditions. All statements herein are qualified in their entirety by
reference to each such document, copies of which are available for inspection at the offices of
the Commission.
THE 2009 BONDS
General
The 2009 Bonds will be dated their date of delivery and initially will bear interest at a
Weekly Rate during a Weekly Rate Period. This Official Statement describes terms of the
2009 Bonds only during a Weekly Rate Period. There are significant differences in the
terms of the 2009 Bonds bearing interest using other Interest Rate Determination Methods.
This Official Statement is not intended to provide information with respect to the 2009
Bonds bearing interest at a Rate other than a Weekly Rate.
Interest on the 2009 Bonds during a Weekly Rate Period will be payable on the fast
Business Day of each calendar month, commencing November 2, 2009. "Business Day" means
any day other than (1) a Saturday, Sunday, or a day on which banking institutions in the State,
the State of New York or the jurisdiction in which the Corporate Trust Office of the Trustee is
located are authorized or obligated by law or executive order to be closed, (2) for purposes of
payments and other actions relating to Bonds secured by a Credit Enhancement or supported by a
Liquidity Facility, a day upon which commercial banks in the city in which is located the office
of the issuing bank at which demands for payment under the Credit Enhancement or Liquidity
Facility, as applicable, are to be presented are authorized or obligated by law or executive order
to be closed, or (3) a day on which the New York Stock Exchange is closed. DTC, will act as the
initial securities depository for the 2009 Bonds, which will be issued initially pursuant to a book -
entry only system. See "APPENDIX D — BOOK -ENTRY SYSTEM." Under the Indenture, the
Commission may appoint a successor securities depository to DTC for the 2009 Bonds. The
Holders of the 2009 Bonds have no right to a book -entry only system for the 2009 Bonds. The
information under this caption, "THE 2009 BONDS," is subject in its entirety to the provisions
described in "APPENDIX D — BOOK -ENTRY SYSTEM" while the 2009 Bonds are in the
book -entry only system.
There are a number of provisions in the Indenture relating to the terms of 2009 Bonds
purchased by the Liquidity Provider that are not described in this Official Statement. All
references to the terms of the 2009 Bonds in this Official Statement describe only 2009 Bonds
that are not owned by the Liquidity Provider unless expressly indicated herein.
75783979.5 Q
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30
"
T h e 2 0 0 9 B o n d s w i l l b e s u b j e c t t o o p t i o n a l a n d m a n d a t o r y s i n k i n g f u n d r e d e m p t i o n a n d
t o o p t i o n a l a n d m a n d a t o r y t e n d e r a n d p u r c h a s e a s d e s c r i b e d h e r e i n . S e e " T H E 2 0 0 9 B O N D S
R e d e m p t i o n " h e r e i n .
W e e k l y R a t e
D u r i n g e a c h W e e k l y R a t e P e r i o d f o r a n y S e r i e s o f 2 0 0 9 B o n d s , t h e R e m a r k e t i n g A g e n t
f o r s u c h S e r i e s s h a l l s e t a W e e k l y R a t e f o r s u c h 2 0 0 9 B o n d s , b y 5 : 0 0 p . m . , N e w Y o r k C i t y t i m e ,
o n e a c h W e d n e s d a y ( o r t h e i m m e d i a t e l y s u c c e e d i n g B u s i n e s s D a y , i f s u c h W e d n e s d a y i s n o t a
B u s i n e s s D a y ) f o r t h e n e x t C a l e n d a r W e e k ; p r o v i d e d , t h a t , t h e W e e k l y R a t e f o r t h e f i r s t C a l e n d a r
W e e k ( o r p o r t i o n t h e r e o f ) f o l l o w i n g a C o n v e r s i o n D a t e r e s u l t i n g i n a c h a n g e i n t h e I n t e r e s t R a t e
D e t e r m i n a t i o n M e t h o d t o a W e e k l y R a t e s h a l l b e s e t b y s u c h R e m a r k e t i n g A g e n t o n t h e B u s i n e s s
D a y i m m e d i a t e l y p r e c e d i n g s u c h C o n v e r s i o n D a t e . E a c h W e e k l y R a t e s h a l l b e t h e r a t e o f
i n t e r e s t t h a t , i f h o m e b y s u c h 2 0 0 9 B o n d s i n t h e W e e k l y R a t e P e r i o d , w o u l d , i n t h e j u d g m e n t o f
t h e R e m a r k e t i n g A g e n t , h a v i n g d u e r e g a r d f o r t h e p r e v a i l i n g f i n a n c i a l m a r k e t c o n d i t i o n s f o r T a x -
E x e m p t S e c u r i t i e s t h a t a r e o f t h e s a m e g e n e r a l n a t u r e a s s u c h 2 0 0 9 B o n d s f o r w h i c h t h e W e e k l y
R a t e i s t o b e d e t e r m i n e d , o r T a x - E x e m p t S e c u r i t i e s t h a t a r e c o m p e t i t i v e a s t o c r e d i t a n d m a t u r i t y
( o r p e r i o d f o r t e n d e r ) w i t h t h e c r e d i t a n d m a t u r i t y ( o r p e r i o d f o r t e n d e r ) o f t h e 2 0 0 9 B o n d s f o r
w h i c h t h e W e e k l y R a t e i s t o b e d e t e r m i n e d , b e t h e l o w e s t i n t e r e s t r a t e t h a t w o u l d e n a b l e t h e
R e m a r k e t i n g A g e n t t o p l a c e s u c h 2 0 0 9 B o n d s a t a p r i c e e q u a l t o 1 0 0 % o f t h e a g g r e g a t e p r i n c i p a l
a m o u n t o f s u c h 2 0 0 9 B o n d s ( p l u s a c c r u e d i n t e r e s t , i f a n y ) o n t h e f i r s t d a y o f s u c h W e e k l y R a t e
P e r i o d . S e e " A P P E N D I X C S U M M A R Y O F C E R T A I N P R O V I S I O N S O F T H E
I N D E N T U R E . "
C o n v e r s i o n o f I n t e r e s t R a t e
R i g h t o f C o n v e r s i o n . T h e I n t e r e s t R a t e D e t e r m i n a t i o n M e t h o d f o r a n y S e r i e s o f 2 0 0 9
B o n d s i s s u b j e c t . t o C o n v e r s i o n f r o m t i m e t o t i m e b y t h e C o m m i s s i o n , w i t h s u c h r i g h t t o b e
e x e r c i s e d b y d e l i v e r y o f a C o n v e r s i o n N o t i c e t o t h e N o t i c e P a r t i e s f o r t h e 2 0 0 9 B o n d s o f s u c h
S e r i e s a s f o l l o w s : ( 1 ) a t l e a s t t w o B u s i n e s s D a y s p r i o r t o t h e f i f t e e n t h d a y p r e c e d i n g t h e
e f f e c t i v e d a t e o f s u c h p r o p o s e d C o n v e r s i o n , i n t h e e v e n t o f a C o n v e r s i o n f r o m t h e W e e k l y R a t e
t o a D a i l y R a t e o r C o m m e r c i a l P a p e r R a t e ; a n d ( 2 ) a t l e a s t t h r e e B u s i n e s s D a y s p r i o r t o t h e
f i f t e e n t h d a y p r e c e d i n g t h e e f f e c t i v e d a t e o f s u c h p r o p o s e d C o n v e r s i o n , i n t h e e v e n t o f a
C o n v e r s i o n t o a L o n g - T e r m R a t e o r a F i x e d R a t e . T h e d a t e o f t h e p r o p o s e d C o n v e r s i o n m u s t b e
a d a t e o n w h i c h s u c h 2 0 0 9 B o n d s a r e s u b j e c t t o m a n d a t o r y t e n d e r .
T h e C o n v e r s i o n N o t i c e m u s t b e a c c o m p a n i e d b y ( i ) a n O p i n i o n o f B o n d C o u n s e l s t a t i n g
t h a t t h e C o n v e r s i o n i s a u t h o r i z e d a n d p e r m i t t e d u n d e r t h e I n d e n t u r e a n d w i l l n o t , i n a n d o f i t s e l f ,
a d v e r s e l y a f f e c t t h e T a x - E x e m p t s t a t u s o f t h e i n t e r e s t o n t h e 2 0 0 9 B o n d s t o b e c o n v e r t e d , a n d
( i i ) a n o t i c e o f a n y 2 0 0 9 L i q u i d i t y F a c i l i t y o r a n y 2 0 0 9 C r e d i t E n h a n c e m e n t , i f a t t h e s a m e t i m e
a s s u c h 2 0 0 9 B o n d s a r e b e i n g c o n v e r t e d a n A l t e r n a t e L i q u i d i t y F a c i l i t y o r a n e w 2 0 0 9 C r e d i t
E n h a n c e m e n t w i t h r e s p e c t t o s u c h 2 0 0 9 B o n d s w i l l b e p r o v i d e d .
N o C o n v e r s i o n t o a n e w I n t e r e s t R a t e D e t e r m i n a t i o n M e t h o d m a y t a k e e f f e c t u n d e r t h e
I n d e n t u r e u n l e s s e a c h o f t h e f o l l o w i n g c o n d i t i o n s s h a l l h a v e b e e n s a t i s f i e d :
7 5 7 8 3 9 7 9 . 5 5
3 1
(i) the Trustee shall have received a Favorable Opinion of Bond Counsel with
respect to such Conversion;
(ii) all 2009 Bonds to be converted are successfully purchased or deemed
purchased (from remarketing proceeds or from funds provided by the 2009 Liquidity Provider)
and remarketed in the new Interest Rate Determination Method on the Conversion Date;
(iii) in the case of a Conversion to a Daily Rate or a Commercial Paper Rate,
the 2009 Liquidity Facility for such 2009 Bonds must cover principal plus accrued interest,
(computed at the Maximum Interest Rate then in effect on the basis of a 365 day year and actual
days elapsed or a 360 day year of twelve 30 day months, as applicable) for the maximum number
of days between Interest Payment Dates permitted under that Interest Rate Determination
Method, plus such additional number of days, if any, as shall be required by each Rating Agency
then rating such 2009 Bonds; provided that if the number of days of interest coverage provided
by the applicable 2009 Liquidity Facility is being changed from the number of days previously in
place, the Trustee shall have also received a Rating Confirmation from each of the Rating
Agencies then rating such 2009 Bonds; and
(iv) such other conditions as are specified in the Indenture.
On the Conversion Date, the Commission may, at its sole option, purchase 2009 Bonds not
remarketed to other investors, but it will be under no obligation to do so. Conversion of the
Interest Rate Determination Method requires that all 2009 Bonds to be converted must be
tendered for purchase on the Conversion Date. See "APPENDIX C - SUMMARY OF
CERTAIN PROVISIONS OF THE INDENTURE."
Notice of Conversion to DTC and Beneficial Owners. Upon receipt of a Conversion
Notice, as soon as possible, but in any event not less than 15 days prior to the proposed
Conversion Date, the Trustee is to give notice of the proposed Conversion to DTC by first-class
mail. Conveyance of notices and other communications by DTC to DTC Direct Participants, by
DTC Direct Participants to DTC Indirect Participants, and by DTC Direct Participants and DTC
Indirect Participants to Beneficial Owners of 2009 Bonds to be converted will be governed by
arrangements among them, and the Commission and the Trustee will not have any responsibility
or obligation to send a Conversion Notice to Beneficial Owners of 2009 Bonds.
Rescission of Notice of Conversion. Notwithstanding anything in the Indenture to the
contrary, the Commission may rescind any previously given Conversion Notice by giving
written notice thereof to the Notice Parties two or more Business Days prior to the proposed
Conversion Date. If the Trustee receives notice of such rescission prior to the time the Trustee
has given notice of the proposed Conversion to DTC, then the Conversion Notice previously
delivered by the Commission shall be of no force and effect. If the Trustee receives notice from
the Commission of such rescission after the Trustee has given notice of the proposed Conversion
to DTC, then the 2009 Bonds subject to the proposed conversion shall continue to be subject to
mandatory tender for purchase on the proposed Conversion Date (unless, prior to the proposed
Conversion Date, such 2009 Bonds were in a Long -Term Rate Period for which there was no
Liquidity Facility) and the Rate Period for such 2009 Bonds shall automatically adjust to, or
continue as, a Weekly Rate Period on the proposed Conversion Date.
75783979.5 6
•
32
"
"
"
F a i l u r e t o C o n v e r t . T h e I n d e n t u r e i n c l u d e s p r o v i s i o n s s e t t i n g f o r t h t h e p r o c e d u r e s a n d
c o n d i t i o n s f o r t h e e x e r c i s e b y t h e C o m m i s s i o n o f i t s r i g h t o f C o n v e r s i o n o f t h e I n t e r e s t R a t e
D e t e r m i n a t i o n M e t h o d f o r a n y S e r i e s o f 2 0 0 9 B o n d s , i n c l u d i n g t h e c o n d i t i o n s d e s c r i b e d a b o v e
u n d e r " R i g h t o f C o n v e r s i o n . " U n d e r c e r t a i n c i r c u m s t a n c e s , a p l a n n e d C o n v e r s i o n m a y n o t b e
c o m p l e t e d . H o w e v e r , o n c e a n o t i c e o f C o n v e r s i o n i s p r o v i d e d r t o D T C a s d e s c r i b e d a b o v e , a l l
2 0 0 9 B o n d s s u b j e c t t o t h e p r o p o s e d c o n v e r s i o n m u s t b e t e n d e r e d f o r p u r c h a s e .
T h e I n d e n t u r e p r o v i d e s t h a t a f a i l e d C o n v e r s i o n o f t h e I n t e r e s t R a t e D e t e r m i n a t i o n
M e t h o d f o r a n y S e r i e s o f 2 0 0 9 B o n d s m e a n s t h a t s u c h 2 0 0 9 B o n d s w i l l c o n t i n u e t o b e a r i n t e r e s t
a t t h e I n t e r e s t R a t e D e t e r m i n a t i o n M e t h o d i n e f f e c t p r i o r t o t h e p r o p o s e d C o n v e r s i o n D a t e ( a s i f
n o p r o c e e d i n g s f o r C o n v e r s i o n h a d t a k e n p l a c e ) a n d t h e r a t e o f i n t e r e s t t h e r e o n s h a l l b e
d e t e r m i n e d o n t h e p r o p o s e d C o n v e r s i o n D a t e .
R e d e m p t i o n
O p t i o n a l R e d e m p t i o n . T h e 2 0 0 9 B o n d s o f a S e r i e s w i l l b e s u b j e c t t o r e d e m p t i o n p r i o r t o
t h e i r s t a t e d m a t u r i t y , a t t h e o p t i o n o f t h e C o m m i s s i o n , i n w h o l e o r i n p a r t , i n A u t h o r i z e d
D e n o m i n a t i o n s , o n a n y B u s i n e s s D a y , a t a R e d e m p t i o n P r i c e e q u a l t o t h e a m o u n t o f 2 0 0 9 B o n d s
c a l l e d f o r r e d e m p t i o n , p l u s a c c r u e d i n t e r e s t , i f a n y , w i t h o u t p r e m i u m .
M a n d a t o r y R e d e m p t i o n o f t h e 2 0 0 9 B o n d s f r o m M a n d a t o r y S i n k i n g A c c o u n t
P a y m e n t s . T h e 2 0 0 9 B o n d s o f e a c h S e r i e s a r e s u b j e c t t o m a n d a t o r y r e d e m p t i o n f r o m M a n d a t o r y
S i n k i n g A c c o u n t P a y m e n t s o n e a c h d a t e a M a n d a t o r y S i n k i n g A c c o u n t P a y m e n t f o r s u c h 2 0 0 9
B o n d s i s d u e , a n d i n t h e p r i n c i p a l a m o u n t e q u a l t o t h e M a n d a t o r y S i n k i n g A c c o u n t P a y m e n t d u e
o n s u c h d a t e a t a r e d e m p t i o n p r i c e e q u a l t o t h e p r i n c i p a l a m o u n t t h e r e o f , p l u s a c c r u e d b u t u n p a i d
i n t e r e s t t o t h e r e d e m p t i o n d a t e , w i t h o u t p r e m i u m , a s s e t f o r t h b e l o w .
S e r i e s A B o n d s
R e d e m p t i o n D a t e M a n d a t o r y S i n k i n g
( J u n e 1 ) A c c o u n t P a y m e n t
R e d e m p t i o n D a t e M a n d a t o r y S i n k i n g
( J u n e 1 ) A c c o u n t P a y m e n t
2 0 1 0 2 0 2 0
2 0 1 1 2 0 2 1
2 0 1 2 2 0 2 2
2 0 1 3 2 0 2 3
2 0 1 4 2 0 2 4
2 0 1 5 2 0 2 5
2 0 1 6 2 0 2 6
2 0 1 7 2 0 2 7
2 0 1 8 2 0 2 8
2 0 1 9 2 0 2 9 t
t F i n a l M a t u r i t y .
7 5 7 8 3 9 7 9 . 5 7
3 3
Series B Bonds
Redemption Date Mandatory Sinking Redemption Date Mandatory Sinking
(June 1) Account Payment (June 1) Account Payment
2010 2020
2011 2021
2012 2022
2013 2023
2014 2024
2015 2025
2016 2026
2017 2027
2018 2028
2019 2029t
t Final Maturity.
Series C Bonds
Redemption Date Mandatory Sinking
(June 1) Account Payment
Redemption Date Mandatory Sinking
(June 1) Account Payment
2010 2020
2011 2021
2012 2022
2013 2023
2014 2024
2015 2025
2016 2026
2017 2027
2018 2028
2019 20291
t Final Maturity.
General Redemption Provisions
Selection of 2009 Bonds for Redemption. The Commission will designate which Series
of 2009 Bonds and which maturities of such Series are to be redeemed; provided, that 2009
Bonds of such Series registered in the name of the 2009 Liquidity Provider must be redeemed
prior to redeeming any other 2009 Bonds of such Series. If less than all 2009 Bonds of a Series
maturing on any one date are to be redeemed at any one time, DTC's practice is to determine by
lot the amount of the interest of each DTC Direct Participant in the Series to be redeemed. For
purposes of such selection, the 2009 Bonds of such Series shall be deemed to be composed of
multiples of minimum Authorized Denominations and any such multiple may be separately
redeemed. The Commission may designate the Mandatory Sinking Account Payments, or
portions thereof, that are to be reduced as a result of such redemption.
75783979.5 8
34
"
N o t i c e o f R e d e m p t i o n . T h e T r u s t e e w i l l s e n d e a c h n o t i c e o f r e d e m p t i o n b y f i r s t c l a s s
m a i l n o t l e s s t h a n 1 0 n o r m o r e t h a n 9 0 d a y s p r i o r t o t h e r e d e m p t i o n d a t e , t o D T C , t h e
R e m a r k e t i n g A g e n t s a n d o t h e r p a r t i e s s p e c i f i e d i n t h e I n d e n t u r e . C o n v e y a n c e o f n o t i c e s a n d
o t h e r c o m m u n i c a t i o n s b y D T C t o D T C D i r e c t P a r t i c i p a n t s , b y D T C D i r e c t P a r t i c i p a n t s t o D T C
I n d i r e c t P a r t i c i p a n t s , a n d b y D T C D i r e c t P a r t i c i p a n t s a n d D T C I n d i r e c t P a r t i c i p a n t s t o B e n e f i c i a l
O w n e r s o f 2 0 0 9 B o n d s w i l l b e g o v e r n e d b y a r r a n g e m e n t s a m o n g t h e m , a n d t h e C o m m i s s i o n a n d
t h e T r u s t e e w i l l n o t h a v e a n y r e s p o n s i b i l i t y o r o b l i g a t i o n t o s e n d a n o t i c e o f r e d e m p t i o n e x c e p t t o
D T C . F a i l u r e o f D T C t o r e c e i v e a n y n o t i c e o f r e d e m p t i o n o r a n y d e f e c t t h e r e i n w i l l n o t a f f e c t
t h e s u f f i c i e n c y o f a n y p r o c e e d i n g s f o r r e d e m p t i o n . E a c h n o t i c e o f r e d e m p t i o n s h a l l s t a t e ( i ) t h e
d a t e o f t h e n o t i c e , ( i i ) t h e d a t e o f i s s u e o f t h e 2 0 0 9 B o n d s , ( i i i ) t h e r e d e m p t i o n d a t e , ( i v ) t h e
R e d e m p t i o n P r i c e , ( v ) t h e p l a c e o r p l a c e s o f r e d e m p t i o n , i n c l u d i n g t h e n a m e a n d a d d r e s s o f t h e
T r u s t e e , ( v i ) t h e m a t u r i t y , ( v i i ) t h e C U S I P n u m b e r s , i f a n y , a n d ( v i i i ) i n t h e c a s e o f 2 0 0 9 B o n d s
t o b e r e d e e m e d i n p a r t o n l y , t h e r e s p e c t i v e p o r t i o n s o f t h e p r i n c i p a l a m o u n t t h e r e o f t o b e
r e d e e m e d .
R e s c i s s i o n . T h e C o m m i s s i o n m a y , a t i t s o p t i o n , p r i o r t o t h e d a t e f i x e d f o r r e d e m p t i o n i n
a n y n o t i c e o f r e d e m p t i o n r e s c i n d a n d c a n c e l s u c h n o t i c e o f r e d e m p t i o n b y w r i t t e n n o t i c e o f t h e
C o m m i s s i o n t o t h e T r u s t e e a n d t h e T r u s t e e s h a l l m a i l n o t i c e o f s u c h c a n c e l l a t i o n t o t h e r e c i p i e n t s
o f t h e n o t i c e o f r e d e m p t i o n b e i n g c a n c e l l e d .
E f f e c t o f R e d e m p t i o n . N o t i c e o f r e d e m p t i o n h a v i n g b e e n d u l y g i v e n a s a f o r e s a i d , a n d
m o n e y s f o r p a y m e n t o f t h e r e d e m p t i o n p r i c e o f , t o g e t h e r w i t h i n t e r e s t a c c r u e d t o t h e r e d e m p t i o n
d a t e o n , t h e 2 0 0 9 B o n d s ( o r p o r t i o n s t h e r e o f ) s o c a l l e d f o r r e d e m p t i o n b e i n g h e l d b y t h e T r u s t e e ,
o n t h e r e d e m p t i o n d a t e d e s i g n a t e d i n s u c h n o t i c e , t h e 2 0 0 9 B o n d s ( o r p o r t i o n s t h e r e o f ) s o c a l l e d
f o r r e d e m p t i o n s h a l l b e c o m e d u e a n d p a y a b l e a t t h e r e d e m p t i o n p r i c e s p e c i f i e d i n s u c h n o t i c e ,
t o g e t h e r w i t h i n t e r e s t a c c r u e d t h e r e o n t o t h e d a t e f i x e d f o r r e d e m p t i o n , i n t e r e s t o n t h e 2 0 0 9
B o n d s s o c a l l e d f o r r e d e m p t i o n s h a l l c e a s e t o a c c r u e , s u c h 2 0 0 9 B o n d s ( o r p o r t i o n s t h e r e o f ) s h a l l
c e a s e t o b e e n t i t l e d t o a n y b e n e f i t o r s e c u r i t y u n d e r t h e I n d e n t u r e , a n d t h e H o l d e r s o f s u c h 2 0 0 9
B o n d s s h a l l h a v e n o r i g h t s i n r e s p e c t t h e r e o f e x c e p t t o r e c e i v e p a y m e n t o f s a i d r e d e m p t i o n p r i c e
a n d a c c r u e d i n t e r e s t t o t h e d a t e f i x e d f o r r e d e m p t i o n .
P a r t i a l R e d e m p t i o n o f B o n d s . U p o n s u r r e n d e r o f a n y B o n d t o b e r e d e e m e d i n p a r t o n l y ,
t h e C o m m i s s i o n s h a l l e x e c u t e , a n d t h e T r u s t e e s h a l l a u t h e n t i c a t e a n d d e l i v e r t o t h e H o l d e r o f
s u c h 2 0 0 9 B o n d , a t t h e e x p e n s e o f t h e C o m m i s s i o n , a n e w B o n d o r B o n d s o f M i n i m u m
A u t h o r i z e d D e n o m i n a t i o n s e q u a l i n a g g r e g a t e p r i n c i p a l a m o u n t t o t h e u n r e d e e m e d p o r t i o n o f t h e
B o n d s u r r e n d e r e d , a t t h e s a m e m a t u r i t y a n d t e r m s a s t h e s u r r e n d e r e d B o n d .
T e n d e r P r o v i s i o n s
O p t i o n a l T e n d e r o f 2 0 0 9 B o n d s f o r P u r c h a s e . E x c e p t a s o t h e r w i s e p r o v i d e d i n t h e
I n d e n t u r e , d u r i n g a n y W e e k l y R a t e P e r i o d , a n y 2 0 0 9 B o n d o r ( p r o v i d e d t h a t t h e a m o u n t s o
p u r c h a s e d a n d t h e a m o u n t n o t s o p u r c h a s e d m u s t e a c h b e a n A u t h o r i z e d D e n o m i n a t i o n ) a p o r t i o n
t h e r e o f , m a y b e t e n d e r e d f o r p u r c h a s e o n a n y B u s i n e s s D a y a t t h e a p p l i c a b l e P u r c h a s e P r i c e ,
p a y a b l e i n a c c o r d a n c e w i t h t h e I n d e n t u r e i n i m m e d i a t e l y a v a i l a b l e f u n d s , u p o n ( A ) d e l i v e r y b y
t h e H o l d e r o r B e n e f i c i a l O w n e r o f s u c h 2 0 0 9 B o n d t o t h e R e m a r k e t i n g A g e n t s a n d t o t h e T r u s t e e
a t i t s P r i n c i p a l O f f i c e o f a n i r r e v o c a b l e w r i t t e n n o t i c e o r n o t i c e b y E l e c t r o n i c M e a n s b y 5 : 0 0 p . m .
( N e w Y o r k C i t y t i m e ) o n a n y B u s i n e s s D a y a t l e a s t s e v e n ( 7 ) d a y s p r i o r t o t h e P u r c h a s e D a t e ,
7 5 7 8 3 9 7 9 . 5 9
3 5
which states the principal amount of such 2009 Bond to be tendered for purchase and the
Purchase Date, and (B) delivery of such 2009 Bond to the Trustee on the Purchase Date in
accordance with the Indenture.
Mandatory Tender of 2009 Bonds for Purchase. The 2009 Bonds shall be subject to
mandatory tender for purchase at the applicable Purchase Price, at the following times and upon
the occurrence of any of the events stated below:
(1) with respect to any Series of 2009 Bonds, on the Conversion Date for such 2009
Bonds to a new Interest Rate Determination Method specified in a Conversion Notice (whether
or not the proposed Conversion becomes effective on such date, unless converting from a Long -
Term Rate Period for which there is no Liquidity Facility and the proposed Conversion does not
occur, in which case the mandatory tender will be cancelled);
(2) (A) on the fifth (5th) Business Day preceding (i) the scheduled Expiration of a
2009 Liquidity Facility or (ii) the Termination of a 2009 Liquidity Facility, at the election of the
Commission as permitted by such 2009 Liquidity Facility; and (B) on the date of the provision of
an Alternate Liquidity Facility for such 2009 Bonds pursuant to the Indenture and the resultant
Termination of the existing 2009 Liquidity Facility; provided, however, that, notwithstanding
any other provision of the Indenture to the contrary, no mandatory tender for purchase shall be
required pursuant to this subsection if a Rating Confirmation shall be delivered by each Rating
Agency then rating the 2009 Bonds on the date of the provision of the Alternate Liquidity
Facility pursuant to the Indenture and the resultant Termination of the existing 2009 Liquidity
Facility; and
(3) with respect to each 2009 Bond bearing interest at a Weekly Rate or a Daily Rate
upon receipt by the Trustee of written notice from the 2009 Liquidity Provider for such 2009
Bonds that an event of default or an event of termination (other than an immediate termination or
suspension) has occurred under the related 2009 Liquidity Facility with the effect that the
obligations of such 2009 Liquidity Provider to purchase such 2009 Bonds or otherwise provide
for the Purchase Price of such 2009 Bonds under such 2009 Liquidity Facility shall terminate on
the date specified in such notice, in which event such 2009 Bonds shall be subject to purchase on
a Business Day selected by the Trustee which date shall be not more than five (5) Business Days
after receipt of such notice, but in no event later than the Business Day preceding the termination
date specified in the notice received from such 2009 Liquidity Provider.
Notice of mandatory tender for purchase on the Conversion Date shall be given by the
Trustee to the Holders as provided in the Indenture. The 2009 Bonds will be registered in the
name of Cede & Co., as Holder of the 2009 Bonds and nominee for DTC. The Trustee shall give
notice by first class mail to the Holders of affected 2009 Bonds of each Termination of a 2009
Liquidity Facility and each Expiration of a 2009 Liquidity Facility making 2009 Bonds subject to
mandatory tender as provided above, which notice shall (i) state the date of such Termination,
substitution or Expiration; (ii) state that unless a Rating Confirmation is received with respect to
the substitution (in which event no mandatory tender for purchase shall occur), such 2009 Bonds
shall be subject to mandatory tender for purchase on the specified Purchase Date at the
applicable Purchase Price (which shall be specified in such notice); and (iii) be mailed by the
75783979.5
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Trustee not later than the fifteenth (15th) day prior to such Termination, substitution or
expiration.
The Trustee shall give notice by first class mail within two (2) Business Days of receipt
of a notice from a 2009 Liquidity Provider, to the Holders of the affected 2009 Bonds at their
addresses shown on the bond registration books maintained by the Trustee which notice shall: (1)
state such 2009 Bonds are subject to mandatory tender for purchase at the applicable Purchase
Price (which shall be specified in such notice); and (2) state the Purchase Date.
Delivery of Tendered 2009 Bonds. With respect to any 2009 Bond that is registered in
book -entry form with a Securities Depository, delivery of such 2009 Bond to the Trustee in
connection with any optional or mandatory tender for purchase pursuant to the Indenture shall be
effected by the making of, or the irrevocable authorization to make, appropriate entries on the
books of the Securities Depository for such 2009 Bond or any Participant of such Securities
Depository to reflect the transfer of the beneficial ownership interest in such 2009 Bond to the
account of the Trustee, or to the account of a Participant of such Securities Depository acting on
behalf of the Trustee. With respect to any 2009 Bond that is not registered in book -entry form
with a Securities Depository, delivery of such 2009 Bond to the Trustee in connection with any
optional or mandatory tender for purchase shall be effected by physical delivery of such 2009
Bond to the Trustee at its Principal Office, by 1:00 p.m. (New York City time) on the Purchase
Date, accompanied by an instrument of transfer thereof, in a form satisfactory to the Trustee,
executed in blank by the Holder thereof with the signature of such Holder guaranteed in
accordance with the guidelines set forth by one of the nationally recognized medallion signature
programs.
2009 Bonds Deemed Purchased. If moneys sufficient to pay the Purchase Price of 2009
Bonds to be purchased pursuant to the Indenture shall be held by the Trustee on the applicable
Purchase Date, such 2009 Bonds shall be deemed to have been purchased for all purposes of the
Indenture, irrespective of whether or not such 2009 Bonds shall have been delivered to the
Trustee or transferred on the books of a Securities Depository for such 2009 Bonds, and neither
the former Holder or Beneficial Owner of such 2009 Bonds nor any other person shall have any
claim thereon, under the Indenture or otherwise, for any amount other than the Purchase Price
thereof.
In the event of non -delivery of any 2009 Bond to be purchased pursuant to the Indenture,
the Trustee shall segregate and hold uninvested the moneys for the Purchase Price of such 2009
Bond in trust, without liability for interest thereon, for the benefit of the former Holders or
Beneficial Owners of such 2009 Bond, who shall, except as provided in the following sentence,
thereafter be restricted exclusively to such moneys for the satisfaction of any claim for the
Purchase Price of such 2009 Bond. Any moneys that the Trustee shall segregate and hold in trust
for the payment of the Purchase Price of any 2009 Bond and remaining unclaimed for two (2)
years after the date of purchase shall, subject to satisfaction of all amounts then due and payable
to the Liquidity Provider (other than 2009 Liquidity Provider Bonds), be paid automatically to
the Commission. After the payment of such unclaimed moneys to the Commission, the former
Holder or Beneficial Owner of such 2009 Bond shall look only to the Commission for the
payment thereof.
75783979.5
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Tenders of 2009 Bonds and Deliveries of Converted 2009 Bonds Are Subject to DTC
Procedures. As long as the book -entry only system is in effect with respect to the 2009 Bonds,
all tenders for purchase and deliveries upon Conversion of 2009 Bonds tendered for purchase or
subject to mandatory tender under the provisions of the Indenture shall be made pursuant to
DTC's procedures as in effect from time to time, and neither the Commission, the Trustee, nor
any Remarketing Agent shall have any responsibility for or liability with respect to the
implementation of these procedures.
SPECIAL CONSIDERATIONS RELATING TO THE 2009 BONDS
SUBJECT TO OPTIONAL TENDER AND REMARKETING
The Remarketing Agents are Paid by the Commission
The Remarketing Agents' responsibilities include determining the interest rate from time
to time and remarketing 2009 Bonds that are optionally or mandatorily tendered by the Owners
thereof (subject, in each case, to the terms of the applicable Remarketing Agreement), as further
described in this Official Statement. The Remarketing Agents are appointed by the Commission
and are paid by the Commission for their services. As a result, the interests of the Remarketing
Agents may differ from those of existing holders and potential purchasers of such 2009 Bonds.
The Remarketing Agents Routinely Purchase 2009 Bonds for their Own Account
The Remarketing Agents act as remarketing agent for a variety of variable rate demand
obligations and, in their sole discretion, routinely purchase such obligations for their own
account. The Remarketing Agents are permitted, but not obligated, to purchase tendered 2009
Bonds for their own account and, in their sole discretion, routinely acquire such tendered 2009
Bonds to achieve a successful remarketing of the 2009 Bonds (i.e., because there otherwise are
not enough buyers to purchase the 2009 Bonds) or for other reasons. However, the Remarketing
Agents are not obligated to purchase 2009 Bonds, and may cease doing so at any time without
notice. The Remarketing Agents may also make a market in the 2009 Bonds by routinely
purchasing and selling 2009 Bonds other than in connection with an optional or mandatory
tender and remarketing. Such purchases and sales may be at or below par. However, the
Remarketing Agents are not required to make a market in the 2009 Bonds. The Remarketing
Agents may also sell any 2009 Bonds they have purchased to one or more affiliated investment
vehicles for collective ownership or enter into derivative arrangements with affiliates or others in
order to reduce its exposure to the 2009 Bonds. The purchase of 2009 Bonds by the Remarketing
Agents may create the appearance that there is greater third party demand for the 2009 Bonds in
the market than is actually the case. The practices described above also may result in fewer 2009
Bonds being tendered in a remarketing.
2009 Bonds May Be Offered at Different Prices on Any Date Including a Rate
Determination Date
Pursuant to the Remarketing Agreements, each Remarketing Agent is required to
determine the applicable rate of interest that, in its judgment, is the lowest rate that would permit
the sale of the applicable 2009 Bonds bearing interest at the applicable interest rate at par plus
accrued interest, if any, on and as of the applicable date. The interest rate will reflect, among
75783979.5
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"
"
o t h e r f a c t o r s , t h e l e v e l o f m a r k e t d e m a n d f o r t h e a p p l i c a b l e 2 0 0 9 B o n d s ( i n c l u d i n g w h e t h e r s u c h
R e m a r k e t i n g A g e n t i s w i l l i n g t o p u r c h a s e s u c h 2 0 0 9 B o n d s f o r i t s o w n a c c o u n t ) . T h e r e m a y o r
m a y n o t b e 2 0 0 9 B o n d s t e n d e r e d a n d r e m a r k e t e d o n a n y g i v e n d a t e , s u c h R e m a r k e t i n g A g e n t
m a y o r m a y n o t b e a b l e t o r e m a r k e t a n y 2 0 0 9 B o n d s t e n d e r e d f o r p u r c h a s e o n s u c h d a t e a t p a r
a n d s u c h R e m a r k e t i n g A g e n t m a y s e l l 2 0 0 9 B o n d s a t v a r y i n g p r i c e s t o d i f f e r e n t i n v e s t o r s o n
s u c h d a t e o r a n y o t h e r d a t e . T h e R e m a r k e t i n g A g e n t s a r e n o t o b l i g a t e d t o a d v i s e p u r c h a s e r s i n a
r e m a r k e t i n g i f t h e y d o n o t h a v e t h i r d p a r t y b u y e r s f o r a l l o f t h e a p p l i c a b l e 2 0 0 9 B o n d s a t t h e
r e m a r k e t i n g p r i c e . I f a R e m a r k e t i n g A g e n t o w n s a n y 2 0 0 9 B o n d s f o r i t s o w n a c c o u n t , i t m a y , i n
i t s s o l e d i s c r e t i o n i n a s e c o n d a r y m a r k e t t r a n s a c t i o n o u t s i d e t h e t e n d e r p r o c e s s , o f f e r s u c h 2 0 0 9
B o n d s o n a n y d a t e a t a d i s c o u n t t o p a r t o s o m e i n v e s t o r s .
T h e A b i l i t y t o S e l l t h e 2 0 0 9 B o n d s O t h e r T h a n t h r o u g h T e n d e r P r o c e s s M a y B e L i m i t e d
T h e R e m a r k e t i n g A g e n t s m a y b u y a n d s e l l 2 0 0 9 B o n d s o t h e r t h a n t h r o u g h t h e t e n d e r
p r o c e s s . H o w e v e r , t h e y a r e n o t o b l i g a t e d t o d o s o a n d m a y c e a s e d o i n g s o a t a n y t i m e w i t h o u t
n o t i c e a n d m a y r e q u i r e h o l d e r s t h a t w i s h t o t e n d e r t h e i r 2 0 0 9 B o n d s t o d o s o t h r o u g h t h e t e n d e r
a g e n t w i t h a p p r o p r i a t e n o t i c e . T h u s , i n v e s t o r s w h o p u r c h a s e t h e 2 0 0 9 B o n d s , w h e t h e r i n a
r e m a r k e t i n g o r o t h e r w i s e , s h o u l d n o t a s s u m e t h a t t h e y w i l l b e a b l e t o s e l l t h e i r 2 0 0 9 B o n d s o t h e r
t h a n b y t e n d e r i n g t h e 2 0 0 9 B o n d s i n a c c o r d a n c e w i t h t h e t e n d e r p r o c e s s .
N o R e m a r k e t i n g A g e n t S u c c e s s o r i n C e r t a i n C i r c u m s t a n c e s
U n d e r c e r t a i n c i r c u m s t a n c e s a R e m a r k e t i n g A g e n t m a y b e r e m o v e d o r h a v e t h e a b i l i t y t o
r e s i g n o r c e a s e i t s r e m a r k e t i n g e f f o r t s , w i t h o u t a s u c c e s s o r h a v i n g b e e n n a m e d , s u b j e c t t o t h e
t e r m s o f t h e a p p l i c a b l e R e m a r k e t i n g A g r e e m e n t a n d t h e I n d e n t u r e .
P L A N O F R E F U N D I N G
T h e p r o c e e d s o f t h e 2 0 0 9 B o n d s w i l l b e a p p l i e d t o ( i ) r e f u n d a l l o f t h e R e f u n d e d B o n d s ,
( i i ) r e t i r e a p o r t i o n o f t h e N o t e s , i n t h e p r i n c i p a l a m o u n t o f $ 5 0 , 0 0 0 , 0 0 0 , ( i i i ) f u n d a [ p o r t i o n o f
a ] r e s e r v e f o r t h e 2 0 0 9 B o n d s , a n d ( i v ) p a y c o s t s o f i s s u a n c e o f t h e 2 0 0 9 B o n d s .
P u r s u a n t t o t h e t e r m s o f t h e I n d e n t u r e , t h e r e f u n d i n g o f t h e R e f u n d e d B o n d s w i l l b e
e f f e c t e d b y d e p o s i t i n g a p o r t i o n o f t h e p r o c e e d s o f t h e 2 0 0 9 B o n d s i n t h e R e d e m p t i o n F u n d
c r e a t e d a n d e s t a b l i s h e d u n d e r t h e I n d e n t u r e f o r t h e R e f u n d e d B o n d s . S u c h p r o c e e d s a n d o t h e r
m o n i e s d e p o s i t e d b y t h e C o m m i s s i o n i n t h e R e d e m p t i o n F u n d w i l l b e u s e d t o p u r c h a s e
D e f e a s a n c e S e c u r i t i e s , t h e p r i n c i p a l o f a n d i n t e r e s t o n w h i c h w h e n d u e w i l l p r o v i d e m o n i e s t h a t
w i l l b e s u f f i c i e n t t o r e d e e m t h e R e f u n d e d B o n d s o n D e c e m b e r 1 , 2 0 0 9 ( t h e " R e d e m p t i o n D a t e " ) .
S e e " V E R I F I C A T I O N O F M A T H E M A T I C A L C O M P U T A T I O N S " h e r e i n .
7 5 7 8 3 9 7 9 . 5
1 3
3 9
ESTIMATED SOURCES AND USES OF PROCEEDS
The proceeds from the sale of the 2009 Bonds are expected to be applied as follows:
Sources of Funds:
Principal Amount of 2009 Bonds
Funds Relating to the Refunded Bonds
Total Sources: $
Uses of Funds:
Redemption Fund
Transfer to Notes Trustee
Costs of Issuance(I)
2009 Bonds Reserve Fund
Total Uses: $
(1) Includes Underwriters' discount, Rating Agency fees, Trustee fees, printing costs, Bond Counsel,
Disclosure Counsel, Financial Advisor, Auditor and Verification Agent fees and expenses and other
miscellaneous expenses.
SECURITY AND SOURCES OF PAYMENT FOR THE 2009 BONDS
Limited Obligation
The 2009 Bonds are limited obligations of the Commission and are payable as to
principal, Purchase Price and interest exclusively from the Revenues, which principally include
Sales Tax Revenues, pledged under the Indenture.
NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE
COUNTY OF RIVERSIDE, THE STATE OF CALIFORNIA OR ANY POLITICAL
SUBDIVISION OR PUBLIC AGENCY THEREOF, OTHER THAN THAT OF THE
COMMISSION TO THE EXTENT OF THE PLEDGED REVENUES, 1S PLEDGED TO THE
PAYMENT OF THE PRINCIPAL OF, PURCHASE PRICE, OR INTEREST ON, THE 2009
BONDS.
Pledge of Revenues
All Revenues, consisting of Sales Tax Revenues and Swap Revenues are irrevocably
pledged by the Commission to secure the punctual payment of the principal of, premium, if any,
and interest on the 2009 Bonds and any additional Series of Bonds issued under the Indenture
and all amounts owing on any Parity Obligations in accordance with their terms. The Revenues
shall not be used for any other purpose while any of the Bonds or Parity Obligations remain
Outstanding, except as permitted by the provisions of the Indenture permitting the application
thereof for the purposes and on the terms and conditions set forth therein. Additionally, all
amounts (including proceeds of the Bonds) held by the Trustee under the Indenture (except for
amounts held in the Rebate Fund, any Letter of Credit Account and any Bond Purchase Fund)
75783979.5
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are pledged to secure the payment of all amounts owing on the Bonds and Parity Obligations,
subject only to the provisions of the Indenture permitting the application thereof for the purposes
and on the terms and conditions set forth therein. Pursuant to the Indenture, the pledge of
Revenues constitutes a first lien to secure the Bonds and Parity Obligations. The pledge of
Revenues shall be irrevocable until all Bonds issued under the Indenture, including the 2009
Bonds, and all Panty Obligations are no longer Outstanding.
The Revenues pledged to the payment of the Bonds and Panty Obligations shall be
applied without priority or distinction of one over the other and the Sales Tax Revenues shall
constitute a trust fund for the security and payment of the Bonds and Parity Obligations; but
nevertheless out of Revenues certain. amounts may be applied for other purposes as provided in
the Indenture.
For a detailed description of the Sales Tax and projected receipts of Sales Tax Revenues,
see "THE SALES TAX" herein.
Revenue Fund; Allocation of Revenues
As long as any Bonds are Outstanding or any Parity Obligations remain unpaid, the
Commission has assigned the Sales Tax Revenues to the Trustee and shall cause the Board of
Equalization to transmit the same directly to the Trustee. The Sales Tax Revenues shall be
received and held in trust by the Trustee for the benefit of the Holders of the Bonds and any
Parity Obligations. The Trustee shall forthwith deposit all Sales Tax Revenues in the Revenue
Fund, maintained and held in trust by the Trustee, when and as such Sales Tax Revenues are
received by the Trustee. See "APPENDIX C — SUMMARY OF CERTAIN PROVISIONS OF
THE INDENTURE — Allocation of Revenues." Investment income on amounts held by the
Trustee (other than amounts held in the Rebate Fund or for which particular instructions are
provided) shall also be deposited in the Revenue Fund.
In each month while Bonds remain Outstanding, the Trustee is required to set aside
receipts of Sales Tax Revenues in the following respective funds, amounts and order of priority
(provided that deficiencies in any previously required deposit shall be made up prior to the
deposit to a fund subsequent in priority and further provided that set asides or transfers required
with respect to Parity Obligations shall be made on a parity basis, as provided in the Indenture):
1. Interest Fund. The Indenture requires the Trustee to make monthly
deposits in the Interest Fund in an amount equal to (a) one -sixth of the aggregate
half -yearly amount of interest becoming due and payable on Outstanding Current Interest
Bonds (other than Bonds constituting Variable Rate Indebtedness) during the ensuing
six-month period, plus (b) the aggregate amount of interest to accrue during that month,
calculated as provided in the Indenture, on the Outstanding Variable Rate Indebtedness;
provided that all Swap Revenues received with respect to Interest Rate Swap Agreements
that are Parity Obligations shall be deposited in the Interest Fund and credited to the
above -required deposits, and that payments on such Interest Rate Swap Agreements
(other than fees and expenses and termination payments) shall be payable from the
Interest Fund and the above -required deposits shall be adjusted to include such payments.
75783979.5
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2. Principal Fund; Sinking Accounts. The Indenture also requires the
Trustee to make monthly deposits in the Principal Fund in an amount equal to at least
(a) one -sixth of the aggregate semiannual amount of principal, accreted value, if
applicable, becoming due and payable within the next six months on Outstanding Bonds
having semiannual maturity dates, plus (b) one -twelfth of the aggregate yearly amount of
principal, accreted value, if applicable, becoming due and payable within the next twelve
months on Outstanding Bonds having annual maturity dates, plus (c) one -sixth of the
aggregate of the Mandatory Sinking Account Payments to be paid during the next
six-month period into the respective Sinking Accounts for the Term Bonds of all Series
for which Sinking Accounts have been created and for which semiannual mandatory
redemption is required from said Sinking Accounts, plus (d) one -twelfth of the aggregate
of the Mandatory Sinking Account Payments to be paid during the next 12-month period
into the respective Sinking Accounts for the Term Bonds of all Series for which Sinking
Accounts have been created and for which annual mandatory redemption is required from
such Sinking Accounts.
3. Bond Reserve Fund. The Indenture also requires the Trustee to make
deposits to the Bond Reserve Fund (including the 2009 Bonds Reserve Fund) as set forth
below. See "— 2009 Bonds Reserve Fund" below.
4. Subordinate Obligations Fund. As long as any Subordinate Obligations
remain unpaid, any Revenues remaining in the Revenue Fund after the transfers
described in (1), (2) and (3) above have been made shall be transferred to the Subordinate
Trustee. After the Subordinate Trustee has made the required deposit of Revenues under
the Subordinate Indenture, the Subordinate Trustee shall transfer any remaining
Revenues back to the Trustee.
5. Fees and Expenses Fund. At the direction of the Commission, after the
transfers described in (1), (2), (3) and (4) above have been made, the Trustee is required
to deposit as soon as practicable in each month in the Fees and Expenses Fund
(i) amounts necessary for payment of fees, expenses and similar charges (including fees,
expenses and similar charges relating to any Liquidity Facility or Credit Enhancement for
the Bonds or any Parity Obligations) owing in such month or the following month by the
Commission in connection with the Bonds or any Parity Obligations and (ii) amounts
necessary for payment of fees, expenses and similar charges owing in such month or the
following month by the Commission in connection with Subordinate Obligations. The
Commission shall inform the Trustee of such amounts, in writing, on or prior to the first
Business Day of each month.
Any Revenues remaining in the Revenue Fund after the foregoing transfers described in (1), (2),
(3), (4) and (5) above, except as the Commission shall otherwise direct in writing or as is
otherwise provided in a supplemental indenture, shall be transferred to the Commission on the
same Business Day or as soon as practicable thereafter. The Commission may use and apply the
Revenues when received by it for any lawful purpose of the Commission, including the
redemption of Bonds upon the terms and conditions set forth in the supplemental indenture
relating to such Bonds and the purchase of Bonds as and when and at such prices as it may
determine.
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"
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S e e " A P P E N D I X C S U M M A R Y O F C E R T A I N P R O V I S I O N S O F T H E
I N D E N T U R E A l l o c a t i o n o f R e v e n u e s " a n d " D e f i n i t i o n s " f o r a m o r e c o m p l e t e d i s c u s s i o n .
2 0 0 9 B o n d s R e s e r v e F u n d
T h e S e c o n d S u p p l e m e n t a l I n d e n t u r e e s t a b l i s h e s t h e 2 0 0 9 B o n d s R e s e r v e F u n d t o b e
m a i n t a i n e d i n a n a m o u n t e q u a l t o t h e 2 0 0 9 B o n d s R e s e r v e R e q u i r e m e n t , f o r t h e p u r p o s e o f
p a y i n g p r i n c i p a l o f a n d i n t e r e s t o n t h e 2 0 0 9 B o n d s w h e n d u e i f i n s u f f i c i e n t m o n e y s f o r s u c h
p a y m e n t a r e o n d e p o s i t i n t h e P r i n c i p a l A c c o u n t a n d t h e I n t e r e s t A c c o u n t , a n d f o r s u c h o t h e r
p u r p o s e s a s a r e s p e c i f i e d i n t h e I n d e n t u r e . T h e i n i t i a l 2 0 0 9 B o n d s R e s e r v e R e q u i r e m e n t u p o n
i s s u a n c e o f t h e 2 0 0 9 B o n d s i s $ , w h i c h a m o u n t w i l l b e f u n d e d f r o m t h e p r o c e e d s o f
t h e s a l e o f t h e 2 0 0 9 B o n d s . " 2 0 0 9 B o n d s R e s e r v e R e q u i r e m e n t ' i s d e f i n e d u n d e r t h e S e c o n d
S u p p l e m e n t a l I n d e n t u r e a s f o l l o w s : a s o f a n y d a t e o f c a l c u l a t i o n , t h e l e a s t o f ( i ) 1 0 % o f t h e
a g g r e g a t e o r i g i n a l p r i n c i p a l a m o u n t o f 2 0 0 9 B o n d s ( o r , i f t h e a m o u n t o f a n y o r i g i n a l i s s u e
d i s c o u n t o r p r e m i u m e x c e e d s 2 % , 1 0 % o f t h e i s s u e p r i c e o f t h e 2 0 0 9 B o n d s ) , ( i i ) 1 2 5 % o f
a v e r a g e A n n u a l D e b t S e r v i c e f o r t h e 2 0 0 9 B o n d s o r ( i i i ) 1 0 0 % o f M a x i m u m A n n u a l D e b t
S e r v i c e f o r t h e 2 0 0 9 B o n d s ; p r o v i d e d t h a t w i t h r e s p e c t t o a S e r i e s o f v a r i a b l e r a t e 2 0 0 9 B o n d s
f o r w h i c h a n i n t e r e s t s w a p i s n o t i n p l a c e , t h e i n t e r e s t r a t e t h e r e o n , f o r p e r i o d s w h e r e t h e r a t e h a s
n o t y e t b e e n d e t e r m i n e d , f o r p u r p o s e s o f c a l c u l a t i n g t h e 2 0 0 9 B o n d s R e s e r v e R e q u i r e m e n t s h a l l
b e a s s u m e d t o b e e q u a l t o t h e r a t e p u b l i s h e d i n T h e B o n d B u y e r a s t h e " B o n d B u y e r R e v e n u e
B o n d I n d e x " b y t h e m o s t r e c e n t d a t e p r e c e d i n g t h e s a l e o f s u c h S e r i e s . E x c e p t a s o t h e r w i s e
p r o v i d e d i n t h e I n d e n t u r e , u p o n t h e o c c u r r e n c e o f a n y d e f i c i e n c y i n t h e 2 0 0 9 B o n d s R e s e r v e
F u n d , t h e T r u s t e e s h a l l d e p o s i t i n t h e 2 0 0 9 B o n d s R e s e r v e F u n d , a s s o o n a s p o s s i b l e i n e a c h
m o n t h , u n t i l t h e b a l a n c e t h e r e i n i s a t l e a s t e q u a l t o t h e 2 0 0 9 B o n d s R e s e r v e R e q u i r e m e n t , o n e -
t w e l f t h o f t h e a g g r e g a t e a m o u n t o f e a c h u n r e p l e n i s h e d p r i o r w i t h d r a w a l f r o m t h e 2 0 0 9 B o n d s
R e s e r v e F u n d o r d e c r e a s e r e s u l t i n g f r o m a n y r e q u i r e d v a l u a t i o n o f t h e i n v e s t m e n t s i n t h e 2 0 0 9
B o n d s R e s e r v e F u n d .
I n l i e u o f a c a s h d e p o s i t , t h e C o m m i s s i o n m a y f u l f i l l a l l o r a p o r t i o n o f i t s o b l i g a t i o n t o
f u n d t h e 2 0 0 9 B o n d s R e s e r v e F u n d b y d e p o s i t i n g a l e t t e r o f c r e d i t , s u r e t y b o n d o r i n s u r a n c e
p o l i c y m e e t i n g t h e r e q u i r e m e n t s o f a R e s e r v e F a c i l i t y , a s p r o v i d e d i n t h e I n d e n t u r e . S e e
" A P P E N D I X C S U M M A R Y O F C E R T A I N P R O V I S I O N S O F T H E I N D E N T U R E F u n d i n g
a n d A p p l i c a t i o n o f B o n d R e s e r v e F u n d " a n d " D e f i n i t i o n s " f o r a m o r e c o m p l e t e d i s c u s s i o n .
A d d i t i o n a l B o n d s a n d P a r i t y O b l i g a t i o n s
U n d e r t h e I n d e n t u r e , t h e C o m m i s s i o n m a y i s s u e o t h e r o b l i g a t i o n s p a y a b l e i n w h o l e o r i n
p a r t f r o m S a l e s T a x R e v e n u e s , s u b j e c t t o t h e t e r m s a n d c o n d i t i o n s c o n t a i n e d i n t h e I n d e n t u r e .
I s s u a n c e o f A d d i t i o n a l S e r i e s o f B o n d s . T h e C o m m i s s i o n m a y b y S u p p l e m e n t a l
I n d e n t u r e e s t a b l i s h o n e o r m o r e a d d i t i o n a l S e r i e s o f B o n d s p a y a b l e f r o m S a l e s T a x R e v e n u e s
a n d s e c u r e d b y t h e p l e d g e m a d e u n d e r t h e I n d e n t u r e e q u a l l y a n d r a t a b l y w i t h t h e 2 0 0 9 B o n d s ,
b u t o n l y u p o n c o m p l i a n c e b y t h e C o m m i s s i o n w i t h t h e p r o v i s i o n s o f t h e I n d e n t u r e . C e r t a i n o f
t h e a p p l i c a b l e p r o v i s i o n s o f t h e I n d e n t u r e a r c d e s c r i b e d b e l o w :
7 5 7 8 3 9 7 9 . 5
( 1 ) N o E v e n t o f D e f a u l t s h a l l h a v e o c c u r r e d a n d t h e n b e c o n t i n u i n g .
1 7
4 3
(2) If so required in the Supplemental Indenture providing for the issuance of
such Series, either (i) a Bond Reserve Fund shall be established to provide additional security for
such Series of Bonds or (ii) the balance in an existing Bond Reserve Fund, forthwith upon the
receipt of the proceeds of the sale of Bonds of such Series shall be increased, if necessary, to an
amount at least equal to the Bond Reserve Requirement with respect to all Bonds to be
considered Outstanding upon the issuance of Bonds of such Series. Said deposit may be made
from the proceeds of the sale of Bonds of such Series or from other funds of the Commission or.
from both such sources or may be made in the form of a Reserve Facility.
(3) The Commission shall place on file with the Trustee a Certificate of the
Commission certifying that the amount of Sales Tax Revenues and 1988 Sales Tax Revenues
collected during the Fiscal Year for which audited financial statements are available preceding
the date on which such additional Series of Bonds will become Outstanding shall have been at
least equal to 1.5 times Maximum Annual Debt Service on all Series of Bonds and Panty
Obligations then Outstanding and the additional Series of Bonds then proposed to be issued,
which Certificate shall also set forth the computations upon which such Certificate is based.
Nothing in the Indenture shall prevent or be construed to prevent the Supplemental
Indenture providing for the issuance of an additional Series of Bonds from pledging or otherwise
providing, in addition to the security given or intended to be given by the Indenture, additional
security for the benefit of such additional Series of Bonds or any portion thereof.
Issuance of Refunding Bonds. Refunding Bonds may be authorized and issued by the
Commission without compliance with the provisions of the Indenture described above under
"Issuance of Additional Series of Bonds" and other terms of the Indenture; provided, that
Maximum Annual Debt Service on all Bonds and Parity Obligations Outstanding following the
issuance of such Refunding Bonds is less than or equal to Maximum Annual Debt Service on all
Bonds and Parity Obligations Outstanding prior to the issuance of such Refunding Bonds, or (ii)
that the Commission expects a reduction in Debt Service on all Bonds Outstanding and all Parity
Obligations outstanding to result from the refunding to be effected with the proceeds of such
Refunding Bonds.
Issuance of Parity Obligations. The Commission may also issue Parity Obligations
which will have, when issued, an equal lien and charge upon the Sales Tax Revenues, provided
that the conditions to the issuance of such Parity Obligations set forth in the Indenture are
satisfied, including satisfaction of the coverage test described in subsection (c) above under the
caption "Issuance of Additional Series of Bonds" (unless such Parity Obligations are being
issued for refunding purposes, in which case the coverage test shall not apply).
As defined in the Indenture, "Parity Obligations" means any indebtedness, installment
sale obligation, lease obligation or other obligation of the Commission for borrowed money, the
Existing Swaps or any other Interest Rate Swap Agreement (excluding fees and expenses and
termination payments on Interest Rate Swap Agreements) entered into in connection with a
Series of Bonds, in each case incurred in accordance with the provisions of the Indenture and
having an equal lien and charge upon the Sales Tax Revenues and therefore being payable on a
parity with the Bonds (whether or not any Bonds are Outstanding).
75783979.5
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"
T h e C o m m i s s i o n ' s o b l i g a t i o n t o m a k e r e g u l a r l y s c h e d u l e d p a y m e n t s u n d e r t h e E x i s t i n g
S w a p A g r e e m e n t s ( a s d e f i n e d b e l o w ) c o n s t i t u t e s a P a r i t y O b l i g a t i o n u n d e r t h e I n d e n t u r e .
E x i s t i n g S w a p A g r e e m e n t s
T h e C o m m i s s i o n h a s e n t e r e d i n t o t h e f o l l o w i n g i n t e r e s t r a t e s w a p a g r e e m e n t s
( c o l l e c t i v e l y , t h e " E x i s t i n g S w a p A g r e e m e n t s " ) , i n a c o m b i n e d n o t i o n a l a m o u n t o f $ 1 8 5 , 0 0 0 , 0 0 0
( s u b j e c t t o a m o r t i z a t i o n ) , w h i c h E x i s t i n g S w a p A g r e e m e n t s h a v e a n e f f e c t i v e d a t e o f O c t o b e r 1 ,
2 0 0 9 a n d e x p i r e o n J u n e 1 , 2 0 2 9 .
a . A n I S D A M a s t e r A g r e e m e n t , d a t e d a s o f A u g u s t 2 2 , 2 0 0 6 , b e t w e e n B a n k o f
A m e r i c a , N . A . ( " B O A " ) a n d t h e C o m m i s s i o n , a s s u p p l e m e n t e d b y t h e S c h e d u l e ,
d a t e d a s o f A u g u s t 2 2 , 2 0 0 6 a n d t h e c o n f i r m a t i o n o f a t r a n s a c t i o n e n t e r e d i n t o o n
A u g u s t 2 2 , 2 0 0 6 b e t w e e n B O A a n d t h e C o m m i s s i o n ( t h e " B O A S w a p
A g r e e m e n t " ) . B O A ' s c u r r e n t l o n g - t e r m u n s u b o r d i n a t e d r a t i n g s a r e " " b y
S t a n d a r d & P o o r ' s R a t i n g S e r v i c e ( " S & P " ) , " " b y M o o d y ' s I n v e s t o r s S e r v i c e
( " M o o d y ' s " ) a n d " _ " b y F i t c h R a t i n g s ( " F i t c h " ) .
b . A n I S D A M a s t e r A g r e e m e n t , d a t e d a s o f S e p t e m b e r 2 4 , 2 0 0 8 , b e t w e e n D e u t s c h e
B a n k A G , N e w Y o r k B r a n c h ( " D B A G " ) a n d t h e C o m m i s s i o n , a s s u p p l e m e n t e d
b y t h e S c h e d u l e , d a t e d a s o f S e p t e m b e r 2 4 , 2 0 0 8 a n d t h e c o n f i r m a t i o n o f a
t r a n s a c t i o n e n t e r e d i n t o o n S e p t e m b e r 2 4 , 2 0 0 8 b e t w e e n D B A G a n d . t h e
C o m m i s s i o n ( t h e " D B A G S w a p A g r e e m e n t " ) . D B A G ' s c u r r e n t l o n g - t e r m
u n s u b o r d i n a t e d r a t i n g s a r e " " b y S & P , " _ " b y M o o d y ' s a n d " " b y
F i t c h .
T h e C o m m i s s i o n ' s o b l i g a t i o n t o m a k e r e g u l a r l y s c h e d u l e d p a y m e n t s t o t h e s w a p
c o u n t e r p a r t i e s u n d e r t h e E x i s t i n g S w a p A g r e e m e n t s i s s e c u r e d b y S a l e s T a x R e v e n u e s o n a
p a r i t y b a s i s w i t h t h e C o m m i s s i o n ' s o b l i g a t i o n t o p a y p r i n c i p a l o f a n d i n t e r e s t o n t h e 2 0 0 9 B o n d s ,
a n d t h e r e f o r e s u c h o b l i g a t i o n c o n s t i t u t e s a P a r i t y O b l i g a t i o n u n d e r t h e I n d e n t u r e . T h e
C o m m i s s i o n ' s o b l i g a t i o n t o m a k e a n y e a r l y t e r m i n a t i o n p a y m e n t u n d e r t h e E x i s t i n g S w a p
A g r e e m e n t s i s s e c u r e d b y a p l e d g e o f S a l e s T a x R e v e n u e s s u b o r d i n a t e t o t h e p l e d g e o f S a l e s T a x
R e v e n u e s i n f a v o r o f t h e 2 0 0 9 B o n d s , P a r i t y O b l i g a t i o n s a n d p a y m e n t o f p r i n c i p a l o f a n d i n t e r e s t
o n S u b o r d i n a t e O b l i g a t i o n s .
T h e B O A S w a p A g r e e m e n t i s i n t h e i n i t i a l n o t i o n a l a m o u n t o f $ 1 0 0 , 0 0 0 , 0 0 0 , s u b j e c t t o
a m o r t i z a t i o n a s s e t f o r t h t h e r e i n . P u r s u a n t t o t h i s a g r e e m e n t , B O A h a s a g r e e d t o p a y t h e
C o m m i s s i o n a f l o a t i n g r a t e e q u a l t o 6 7 % o f U S D L I B O R ( O n e M o n t h ) a n d t h e C o m m i s s i o n h a s
a g r e e d t o p a y B O A a f i x e d r a t e e q u a l t o 3 . 6 7 9 % . T h e B O A S w a p A g r e e m e n t i s s u b j e c t t o e a r l y
t e r m i n a t i o n i n t h e e v e n t t h a t t h e u n e n h a n c e d r a t i n g s o n t h e 2 0 0 9 B o n d s i s s u e d b y M o o d y ' s
I n v e s t o r s S e r v i c e ( " M o o d y ' s " ) a n d S t a n d a r d & P o o r ' s R a t i n g S e r v i c e ( " S & P " ) f a l l b e l o w
i n v e s t m e n t g r a d e o r a r e w i t h d r a w n o r s u s p e n d e d ; a r e d u c t i o n i n t h e l o n g - t e r m u n s u b o r d i n a t e d
r a t i n g s o f B O A b e l o w i n v e s t m e n t g r a d e c a n a l s o r e s u l t i n a n e a r l y t e r m i n a t i o n o f t h e B O A S w a p
A g r e e m e n t . T h e C o m m i s s i o n h a s t h e o p t i o n o f t e r m i n a t i n g t h e B O A S w a p A g r e e m e n t u p o n t w o
B u s i n e s s D a y s ' n o t i c e p r o v i d e d i t h a s s u f f i c i e n t f u n d s t o p a y a n y e a r l y t e r m i n a t i o n a m o u n t .
7 5 7 8 3 9 7 9 . 5
1 9
4 5
The DBAG Swap Agreement is in the initial notional amount of $85,000,000, subject to
amortization as set forth therein. Pursuant to this agreement, DBAG has agreed to pay the
Commission a floating rate equal to 67% of USDLIBOR (One Month) and the Commission has
agreed to pay DBAG a fixed rate equal to 3.206%. The DBAG Swap Agreement is subject to
early termination in the event that the unenhanced ratings on the 2009 Bonds issued by Moody's
and S&P fall below investment grade or are withdrawn or suspended; a reduction in the
unenhanced ratings of the long-term unsecured unsubordinated debt of DBAG below investment
grade can also result in an early termination of the DBAG Swap Agreement. The Commission
has the option of terminating the DBAG Swap Agreement upon two Business Days' notice
provided it has sufficient funds to pay any early termination amount.
In the event of an early termination of one or both of the Existing Swap Agreements, a
termination payment will be payable by either the Commission or the swap counterparty
depending on the then current market value of the Existing Swap Agreement subject to
termination. Any such termination payment payable by the Commission could be substantial.
As of September 1, 2009, the value of the termination payment, if each of the Existing Swap
Agreements were terminated based on the mid -market swap curve, assuming functioning
markets, and assuming that no party was in default under the Existing Swap Agreements, was
estimated by the Commission's financial advisor to be approximately $ million payable
by the Commission. Any early termination payments are payable from Sales Tax Revenues on a
basis subordinate to the Bonds (including the 2009 Bonds).
Subordinate Obligations
The Commission may issue obligations ("Subordinate Obligations") payable out of Sales
Tax Revenues on a basis subordinate to the payment of the principal, premium, interest and
reserve fund requirements for the Bonds and all Parity Obligations, as the same become due and
payable. The Notes and the credit agreements supporting the Notes constitute Subordinate
Obligations under the Indenture. The Commission's obligation to make early termination
payments under the Existing Swap Agreements is secured by a pledge of the Sales Tax Revenues
subordinate to the pledge in favor of the 2009 Bonds, Parity Obligations and payment of
principal of and interest on Subordinate Obligations.
As of September 1, 2009, there was $110,000,000 principal amount of Notes outstanding.
The principal of and interest on the Notes are payable from draws under an irrevocable, direct
pay letter of credit issued by Bank of America, N.A., pursuant to a Reimbursement Agreement,
dated as of March 1, 2005 ("Reimbursement Agreement"), by and between the Commission and
BOA. The stated amount of the letter of credit may not exceed $190,000,000. The letter of
credit expires March 29, 2010, unless terminated earlier as provided in the Reimbursement
Agreement. The Commission's obligation to reimburse BOA for draws under the letter of credit
to pay the principal of and interest on the Notes is secured by a pledge of Sales Tax Revenues
subordinate to the pledge in favor of the holders of the 2009 Bonds and on parity with the
obligation to pay Note holders. A portion of the proceeds of the 2009 Bonds will be used to
retire $50,000,000 principal amount of the outstanding Notes. See "PLAN OF REFUNDING"
herein.
75783979.5
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"
"
T H E L I Q U I D I T Y F A C I L I T Y
[ t o c o m e f r o m B a n k C o u n s e l ]
T H E L I Q U I D I T Y P R O V I D E R
T h e L i q u i d i t y P r o v i d e r i s a w h o l l y o w n e d b a n k s u b s i d i a r y o f J P M o r g a n C h a s e & C o . , a
D e l a w a r e c o r p o r a t i o n w h o s e p r i n c i p a l o f f i c e i s l o c a t e d i n N e w Y o r k , N e w Y o r k . T h e L i q u i d i t y
P r o v i d e r o f f e r s a w i d e r a n g e o f b a n k i n g s e r v i c e s t o i t s c u s t o m e r s , b o t h d o m e s t i c a l l y a n d
i n t e r n a t i o n a l l y . I t i s c h a r t e r e d a n d i t s b u s i n e s s i s s u b j e c t t o e x a m i n a t i o n a n d r e g u l a t i o n b y t h e
O f f i c e o f t h e C o m p t r o l l e r o f t h e C u r r e n c y .
A s o f M a r c h 3 1 s t , 2 0 0 9 , L i q u i d i t y P r o v i d e r , h a d t o t a l a s s e t s o f $ 1 , 6 8 8 . 2 b i l l i o n , t o t a l n e t
l o a n s o f $ 5 9 5 . 9 b i l l i o n , t o t a l d e p o s i t s o f $ 9 7 8 . 8 b i l l i o n , a n d t o t a l s t o c k h o l d e r ' s e q u i t y o f $ 1 3 1 . 6
b i l l i o n . T h e s e f i g u r e s a r e e x t r a c t e d f r o m t h e L i q u i d i t y P r o v i d e r ' s u n a u d i t e d C o n s o l i d a t e d
R e p o r t s o f C o n d i t i o n a n d I n c o m e ( t h e " C a l l R e p o r t " ) a s a t M a r c h 3 1 , 2 0 0 9 , p r e p a r e d i n
a c c o r d a n c e w i t h r e g u l a t o r y i n s t r u c t i o n s t h a t d o n o t i n a l l c a s e s f o l l o w U . S . g e n e r a l l y a c c e p t e d
a c c o u n t i n g p r i n c i p l e s , w h i c h a r e f i l e d w i t h t h e F e d e r a l D e p o s i t I n s u r a n c e C o r p o r a t i o n . T h e C a l l
R e p o r t , i n c l u d i n g a n y u p d a t e t o t h e a b o v e q u a r t e r l y f i g u r e s , c a n b e f o u n d a t w w w . f d i c . g o v .
A d d i t i o n a l i n f o r m a t i o n , i n c l u d i n g t h e m o s t r e c e n t a n n u a l r e p o r t o n F o r m 1 0 - K f o r t h e
y e a r e n d e d D e c e m b e r 3 1 , 2 0 0 8 , o f J P M o r g a n C h a s e & C o . , t h e 2 0 0 8 A n n u a l R e p o r t o f
J P M o r g a n C h a s e & C o . , a n d a d d i t i o n a l a n n u a l , q u a r t e r l y a n d c u r r e n t r e p o r t s f i l e d w i t h o r
f u r n i s h e d t o t h e S e c u r i t i e s a n d E x c h a n g e C o m m i s s i o n ( t h e " S E C " ) b y J P M o r g a n C h a s e & C o . ,
a s t h e y b e c o m e a v a i l a b l e , m a y b e o b t a i n e d w i t h o u t c h a r g e b y e a c h p e r s o n t o w h o m t h i s O f f i c i a l
S t a t e m e n t i s d e l i v e r e d u p o n t h e w r i t t e n r e q u e s t o f a n y s u c h p e r s o n t o t h e O f f i c e o f t h e S e c r e t a r y ,
J P M o r g a n C h a s e & C o . , 2 7 0 P a r k A v e n u e , N e w Y o r k , N e w Y o r k 1 0 0 1 7 o r a t t h e S E C ' s w e b s i t e
a t w w w . s e c . g o v .
T h e i n f o r m a t i o n c o n t a i n e d u n d e r t h i s c a p t i o n " T H E L I Q U I D I T Y P R O V I D E R " r e l a t e s t o
a n d h a s b e e n o b t a i n e d f r o m t h e L i q u i d i t y P r o v i d e r . T h e d e l i v e r y o f t h i s O f f i c i a l S t a t e m e n t s h a l l
n o t c r e a t e a n y i m p l i c a t i o n t h a t t h e r e h a s b e e n n o c h a n g e i n t h e a f f a i r s o f t h e L i q u i d i t y P r o v i d e r
s i n c e t h e d a t e h e r e o f , o r t h a t t h e i n f o r m a t i o n c o n t a i n e d o r r e f e r r e d t o u n d e r t h i s c a p t i o n " T H E
L I Q U I D I T Y P R O V I D E R " i s c o r r e c t a s o f a n y t i m e s u b s e q u e n t t o i t s d a t e .
T H E S A L E S T A X
G e n e r a l
T h e A c t , a m o n g o t h e r t h i n g s , a u t h o r i z e s t h e C o m m i s s i o n t o d e v e l o p a c o u n t y w i d e
c o n s e n s u s o n a p r o p o s e d t r a n s a c t i o n e x p e n d i t u r e p l a n t o b e s u b m i t t e d t o t h e v o t e r s a s p a r t o f a n
o r d i n a n c e i m p o s i n g a r e t a i l t r a n s a c t i o n s a n d u s e t a x i n t h e C o u n t y i n a c c o r d a n c e w i t h t h e
p r o v i s i o n s o f t h e C a l i f o r n i a T r a n s a c t i o n s a n d U s e T a x L a w ( R e v e n u e a n d T a x a t i o n C o d e
S e c t i o n 7 2 5 1 , e t s e q . ) . I n a c c o r d a n c e w i t h t h e A c t , o n N o v e m b e r 5 , 2 0 0 2 , m o r e t h a n t w o - t h i r d s
o f t h e v o t e r s o f t h e C o u n t y v o t i n g o n t h e m e a s u r e a p p r o v e d M e a s u r e " A , " w h i c h a u t h o r i z e d t h e
i m p o s i t i o n o f t h e S a l e s T a x i n t h e C o u n t y c o m m e n c i n g o n J u l y 1 , 2 0 0 9 . T h e S a l e s T a x w i l l b e
c o l l e c t e d f o r a t h i r t y - y e a r p e r i o d . T h e S a l e s T a x c o n s i s t s o f a o n e - h a l f o f o n e p e r c e n t ( 1 / 2 1 ) / 0 )
s a l e s t a x o n t h e g r o s s r e c e i p t s o f r e t a i l e r s f r o m t h e s a l e o f t a n g i b l e p e r s o n a l p r o p e r t y s o l d i n t h e
7 5 7 8 3 9 7 9 . 5
2 1
4 7
County and a use tax at the same rate upon the storage, use or other consumption in the County
of such property purchased from any retailer for storage, use or other consumption in the County,
subject to certain limited exceptions described below.
The one-half of one percent sales tax imposed in the County for transportation purposes
and administered by the Commission, is in addition to an eight and one -quarter percent sales tax
levied statewide by the State of California (the "State"). In general, the statewide sales tax
applies to the gross receipts of retailers from the sale of tangible personal property. The
statewide use tax is imposed on the storage, use or other consumption in the state of property
purchased from a retailer for such storage, use or other consumption. Since the use tax does not
apply to cases where the sale of the property is subject to the sales tax, the application of the use
tax generally is to purchases made outside of the State for use within the State.
The Sales Tax is generally imposed upon the same transactions and items subject to the
sales and use tax levied statewide by the State (hereinafter collectively referred to as the "State
Sales Tax"), with generally the same exceptions. Many categories of transactions are exempt
from the State Sales Tax and the Sales Tax. The most important of these exemptions are: sales
of food products for home consumption, prescription medicine, edible livestock and their feed,
seed and fertilizer used in raising food for human consumption, and gas, electricity and water
when delivered to consumers through mains, lines and pipes. In addition, "Occasional Sales"
(i.e., sales of property not held or used by a seller in the course of activities for which he or she is
required to hold a seller's permit) are generally exempt from the State Sales Tax and from the
Sales Tax; however, the "Occasional Sales" exemption does not apply to the sale of an entire
business and other sales of machinery and equipment used in a business. Sales of property to be
used outside the county which are shipped to a point outside the county, pursuant to the contract
of sale, by delivery to such point by the retailer, or by delivery by the retailer to a carrier for
shipment to a consignee, at such point, are exempt from the State Sales Tax and from the Sales
Tax.
Action by the State Legislature or by voter initiative could change the transactions and
items upon which the State Sales Tax and the Sales Tax are imposed. Such changes or
amendments could have either an adverse or beneficial effect on Sales Tax Revenues. The
Commission is not currently aware of any proposed legislative change which would have a
material adverse effect on Sales Tax Revenues. See also "RISK FACTORS — Proposition 218"
herein.
Collection of Sales Tax Revenues
Collection of the Sales Tax is administered by the California State Board of Equalization
(the `BOE" or the "State Board of Equalization"). The Commission and the State Board of
Equalization have entered into an agreement for state administration of district transactions and
use taxes to authorize payment of Sales Tax Revenues directly to the Trustee. The State Board
of Equalization, after deducting amounts payable to itself, is required to remit the balance of
amounts received from the Sales Tax directly to the Trustee. The Trustee is required to apply the
Sales Tax Revenues to make deposits to the funds and accounts established under the Indenture
and to transfer the remaining amounts to U.S. Bank Trust National Association, as issuing and
paying agent for the Notes (the "Issuing and Paying Agent"). The remaining unapplied Sales
75783979.5
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48
"
T a x R e v e n u e s , i f a n y , a r e t r a n s f e r r e d t o t h e C o m m i s s i o n f o r u s e f o r a n y p u r p o s e c o n t e m p l a t e d
b y t h e O r d i n a n c e . T h e f e e t h a t t h e B O E i s a u t h o r i z e d t o c h a r g e f o r c o l l e c t i o n o f t h e S a l e s T a x i s
d e t e r m i n e d b y S t a t e l e g i s l a t i o n . T h e B O E f e e f o r c o l l e c t i o n o f t h e S a l e s T a x f o r f i s c a l y e a r
2 0 0 9 - 2 0 1 0 i s $ 1 , 4 3 9 , 8 0 0 .
1 9 8 8 S a l e s T a x R e v e n u e s
T h e 1 9 8 8 S a l e s T a x ( a s d e f i n e d b e l o w ) r e p r e s e n t s a n a d d i t i o n a l s o u r c e o f r e v e n u e t o t h e
C o m m i s s i o n , i s a s e p a r a t e t a x f r o m t h e S a l e s T a x a n d d o e s n o t s e c u r e t h e 2 0 0 9 B o n d s .
O n N o v e m b e r 8 , 1 9 8 8 , m o r e t h a n t w o - t h i r d s o f t h e v o t e r s a p p r o v e d t h e R i v e r s i d e C o u n t y
T r a n s p o r t a t i o n C o m m i s s i o n T r a n s p o r t a t i o n E x p e n d i t u r e P l a n a n d R e t a i l T r a n s a c t i o n a n d U s e
T a x O r d i n a n c e ( t h e " P r i o r O r d i n a n c e " ) w h i c h a u t h o r i z e d t h e i m p o s i t i o n o f a r e t a i l t r a n s a c t i o n s
a n d u s e t a x o f o n e - h a l f o f o n e p e r c e n t ( ' / 2 % ) o f t h e g r o s s r e c e i p t s o f r e t a i l e r s f r o m t h e s a l e s o f a l l
t a n g i b l e p e r s o n a l p r o p e r t y s o l d a t r e t a i l i n t h e c o u n t y a n d a u s e t a x a t t h e s a m e r a t e u p o n t h e
s t o r a g e , u s e o r o t h e r c o n s u m p t i o n i n t h e C o u n t y o f R i v e r s i d e ( " C o u n t y " ) o f s u c h p r o p e r t y
p u r c h a s e d f r o m a n y r e t a i l e r f o r s t o r a g e , u s e o r o t h e r c o n s u m p t i o n i n t h e c o u n t y , s u b j e c t t o
c e r t a i n l i m i t e d e x c e p t i o n s ( t h e " 1 9 8 8 S a l e s T a x " ) . T h e 1 9 8 8 S a l e s T a x c e a s e d t o b e e f f e c t i v e o n
J u n e 3 0 , 2 0 0 9 , w i t h m a j o r c o l l e c t i o n s o f t h e 1 9 8 8 S a l e s T a x e x p e c t e d t o b e r e c e i v e d b y t h e
C o m m i s s i o n n o l a t e r t h a n S e p t e m b e r 3 0 , 2 0 0 9 .
T h e C o m m i s s i o n h a s p r e v i o u s l y i s s u e d i n d e b t e d n e s s s e c u r e d b y t h e 1 9 8 8 S a l e s T a x , a n d
a l l o u t s t a n d i n g p r i n c i p a l a n d i n t e r e s t w i t h r e s p e c t t o s u c h i n d e b t e d n e s s h a s b e e n f u l l y p a i d o n o r
b e f o r e J u n e 1 , 2 0 0 9 . T h e S a l e s T a x d o e s n o t s e r v e a s s e c u r i t y f o r t h e r e p a y m e n t o f t h e
o b l i g a t i o n s s e c u r e d b y t h e 1 9 8 8 S a l e s T a x . C o n v e r s e l y , t h e 1 9 9 8 S a l e s T a x d o e s n o t s e r v e a s
s e c u r i t y f o r t h e B o n d s , i n c l u d i n g t h e 2 0 0 9 B o n d s . F o r c o m p a r a t i v e p u r p o s e s , h o w e v e r , b o t h t h e
S a l e s T a x a n d 1 9 9 8 S a l e s T a x a r e l e v i e d a t t h e s a m e r a t e a n d o n t h e s a m e t y p e s o f t r a n s a c t i o n s
w i t h i n t h e C o u n t y .
T h e f o l l o w i n g t a b l e s e t s f o r t h t h e 1 9 8 8 S a l e s T a x r e m i t t e d t o t h e C o m m i s s i o n d u r i n g t h e
f i s c a l y e a r s e n d e d J u n e 3 0 , 2 0 0 0 t h r o u g h J u n e 3 0 , 2 0 0 9 .
7 5 7 8 3 9 7 9 . 5
2 3
4 9
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
HISTORICAL 1988 SALES TAX REVENUE RECEIPTS
Fiscal Year Net Sales % Change
Ended June 30 Tax Receipts(I) From Prior Fiscal Year
2000 S 81,543,732 15.83%
2001 89,464,634 9.71
2002 94,400,890 5.52
2003 102,817,407 8.92
2004 117,632,722 14.41
2005 134,516,986 14.35
2006 155,206,029 15.38
2007 157,092,807 1.22
2008 146,083,683 (7.01)
2009 124,691,932 (14.64)
m
Net of State Board of Equalization administrative fee.
Source: The Commission.
Annual 1988 Sales Tax Revenues received for the Fiscal Year ended June 30, 2009 are
$124,691,932, representing a 14.64% decline from those received in the Fiscal Year ended
June 30, 2008. Quarterly declines for the Fiscal Year ended June 30, 2009 were: (11.81%) first
quarter, (8.70%) second quarter, (17.56%) third quarter and (20.89%) fourth quarter. The decline
in 1988 Sales Tax receipts for the Fiscal Year ended June 30, 2009 is deeper than the decline of
Sales Tax receipts Statewide for this period. The Commission is unable to predict if and when
Sales Tax Revenues will increase. For a summary of historical taxable retail sales within the
County, see the table entitled "County of Riverside, Taxable Sales Transactions" in "APPENDIX
B — COUNTY DEMOGRAPHIC AND ECONOMIC INFORMATION."
The following table sets forth the projected debt service coverage on the 2009 Bonds for
the Fiscal Year ended June 30, 2010.
Projected
Revenues
Maximum Annual
Debt Service)
Projected
Coverage
$121,500,000
(1) Interest on variable rate debt is based on the Existing Swap rates.
Source: The Commission.
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
General
The Commission is charged with a number of important responsibilities in serving the
residents of the County. Administering the 1988 sales tax program, which has raised more than
$1 billion, is by far the most prominent of these responsibilities. The Commission, which has the
75783979.5
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50
"
"
r e s p o n s i b i l i t y o f p l a c i n g f u t u r e t r a n s p o r t a t i o n b a l l o t m e a s u r e s b e f o r e t h e p u b l i c , w a s s u c c e s s f u l
i n N o v e m b e r 2 0 0 2 i n o b t a i n i n g m o r e t h a n t w o - t h i r d s v o t e r a p p r o v a l o f t h e S a l e s T a x .
I n a d d i t i o n t o t h e C o m m i s s i o n ' s M e a s u r e A r e s p o n s i b i l i t i e s , t h e C o m m i s s i o n h a s a l s o
b e e n d e s i g n a t e d a s t h e c o n g e s t i o n m a n a g e m e n t a g e n c y ( t h e " C M A " ) f o r t h e C o u n t y . A s t h e
C M A , t h e C o m m i s s i o n h a s d e v e l o p e d a c o n g e s t i o n m a n a g e m e n t p r o g r a m t h a t m o r e e f f e c t i v e l y
u t i l i z e s t r a n s p o r t a t i o n f u n d s b y l i n k i n g l a n d u s e , t r a n s p o r t a t i o n a n d a i r q u a l i t y e f f o r t s .
T h e C o m m i s s i o n s e r v e s a s t h e s e r v i c e a u t h o r i t y f o r f r e e w a y e m e r g e n c i e s a n d o p e r a t e s t h e
f r e e w a y s e r v i c e p a t r o l ( t h e " F S P " ) f o r t h e C o u n t y . T h e r e s u l t s o f t h e s e p r o g r a m s 6 8 0 c a l l
b o x e s a l o n g t h e C o u n t y r o a d w a y s a n d 2 0 F S P t o w t r u c k s p r o v i d i n g a s s i s t a n c e t o m o r e t h a n
5 2 , 0 0 0 m o t o r i s t s a n n u a l l y a r e a m o n g t h e m o s t v i s i b l e o f t h e C o m m i s s i o n ' s p r o g r a m s .
I n 1 9 9 8 , t h e S t a t e L e g i s l a t u r e g a v e n e w a u t h o r i t y t o t h e C o m m i s s i o n b y c h a n g i n g t h e
w a y f u n d i n g i s d i s t r i b u t e d f r o m t h e S t a t e T r a n s p o r t a t i o n i m p r o v e m e n t P r o g r a m , w h i c h i s f u n d e d
t h r o u g h s t a t e a n d f e d e r a l g a s t a x e s . I n s i m p l e t e r m s , c o u n t i e s n o l o n g e r a p p l y t o t h e S t a t e f o r
f u n d i n g t h e i r m o s t u r g e n t t r a n s p o r t a t i o n n e e d s . I n s t e a d , S t a t e t r a n s p o r t a t i o n d o l l a r s a r e g i v e n
d i r e c t l y a s a n e n t i t l e m e n t , l e a v i n g t h e d e c i s i o n m a k i n g a b o u t t r a n s p o r t a t i o n s p e n d i n g u p t o t h e
d e s i g n a t e d c o u n t y t r a n s p o r t a t i o n c o m m i s s i o n l i k e t h e C o m m i s s i o n . W h i l e t h i s g i v e s t h e
C o m m i s s i o n g r e a t e r c o n t r o l o v e r h o w t r a n s p o r t a t i o n d o l l a r s a r e s p e n t , i t a l s o r e q u i r e s a m u c h
h i g h e r l e v e l o f l o c a l c o m m u n i c a t i o n a n d p a r t i c i p a t i o n t o d e t e r m i n e h o w t h e s e d o l l a r s a r e s p e n t
t h r o u g h o u t a c o u n t y w i t h s o m a n y t r a n s p o r t a t i o n n e e d s . T h e C o m m i s s i o n h a s t h e r e s p o n s i b i l i t y
t o p r o g r a m f u n d s r e c e i v e d u n d e r t h e C a l i f o r n i a T r a n s p o r t a t i o n D e v e l o p m e n t A c t , a s t a t e w i d e
s o u r c e o f f u n d i n g f o r t r a n s i t p u r p o s e s , p r i m a r i l y t o t h e C o u n t y ' s m a j o r p u b l i c t r a n s i t p r o v i d e r s ,
a l t h o u g h t h e C o m m i s s i o n h a s n o r e s p o n s i b i l i t y t o p r o v i d e t r a n s i t s e r v i c e s .
T o e n h a n c e C o u n t y - w i d e p a r t i c i p a t i o n a n d i m p r o v e i t s d e c i s i o n - m a k i n g , t h e C o m m i s s i o n
m a d e a m a j o r c h a n g e i n i t s s t r u c t u r e i n 1 9 9 9 b y e x p a n d i n g t h e B o a r d f r o m e i g h t m e m b e r s t o
t h i r t y . T h e B o a r d e x p a n d e d i n 2 0 0 8 w i t h t h e a d d i t i o n o f t w o m e m b e r s r e p r e s e n t i n g n e w l y
i n c o r p o r a t e d c i t i e s . T h e e x p a n d e d C o m m i s s i o n e n s u r e s b e t t e r r e p r e s e n t a t i o n t h r o u g h o u t t h e
C o u n t y a n d p r o v i d e s t h e p a r t i c i p a t o r y f r a m e w o r k f o r c o n t i n u e d s u c c e s s i n c a r r y i n g o u t t h e s e
r e s p o n s i b i l i t i e s .
C o m m i s s i o n e r s
S e c t i o n 1 3 0 0 5 3 o f t h e C a l i f o r n i a P u b l i c U t i l i t i e s C o d e s p e c i f i e s t h a t t h e C o m m i s s i o n
c o n s i s t s o f f i v e m e m b e r s o f t h e R i v e r s i d e C o u n t y B o a r d o f S u p e r v i s o r s , o n e m e m b e r f r o m e a c h
i n c o r p o r a t e d c i t y i n R i v e r s i d e C o u n t y ( e a c h o f w h o m m u s t b e a m a y o r o r m e m b e r o f t h e C i t y
C o u n c i l ) a n d o n e n o n - v o t i n g m e m b e r a p p o i n t e d b y t h e g o v e r n o r o f t h e S t a t e o f C a l i f o r n i a . T h e
r o l e o f t h e C o m m i s s i o n i s t o a c t a s t h e p o l i c y - m a k i n g b o a r d f o r R i v e r s i d e C o u n t y t r a n s p o r t a t i o n
a c t i v i t i e s .
7 5 7 8 3 9 7 9 . 5
2 5
' 5 1
Executive Staff
The Commission's key staff members, the position held by each and a brief statement of
the background of each staff member are set forth below.
Anne Mayer, Executive Director. Anne Mayer was appointed in October 2007 as the
Chief Executive Officer of the Commission. She is responsible for overall management of the
Commission including execution of operational policies and procedures and all personnel
decisions. Ms. Mayer joined the Commission in May 2005 as Deputy Executive Director. Prior
to joining the Commission, she was the District 8 Director for the California Department of
Transportation ("CALTRANS"). As District Director, she was responsible for management of
the state highway system in San Bernardino and Riverside counties. With over 25 years of
experience in the public works field, Ms. Mayer was with CALTRANS for 14 of those years.
Ms. Mayer holds a civil engineering degree from Michigan State University.
John Standiford, Deputy Executive Director. In January 2008, John Standiford was
appointed as Deputy Executive Director for the Commission, he joined the Commission in 1999
and was the Public Affairs Director prior to his current appointment. Mr. Standiford also served
as the Manager of Government and Media Relations for the Orange County Transportation
Authority, where he worked for more than seven years. Earlier in his career, Mr. Standiford
worked for three state legislators from the Los Angeles area. He received his bachelor and
masters degrees from the University of California, Irvine.
Theresia Trevino, Chief Financial Officer. Ms. Trevino joined the Commission as the
Chief Financial Officer in January 2004. Ms. Trevino previously worked as Manager of
Accounting and Financial Reporting for the Orange County Transportation Authority. She also
served as an adjunct professor for govemmental accounting and reporting at the University of
Redlands. Ms. Trevino's 19-year public accounting career included 16 years with Ernst &
Young LLP. As Senior Manager in its Assurance and Advisory Business Services practice
serving government clients, she led the development of the Southem Califomia practice and
served as a national technical resource. She is a Certified Public Accountant in California and
completed the Executive Management Program at the University of California, Riverside. Ms.
Trevino received a bachelor of science degree in accounting from Loyola Marymount University
with Magna Cum Laude Honors.
THE TRANSPORTATION EXPENDITURE PLAN
On November 5, 2002, 69.2% of the voters of the County approved Measure "A" — The
Riverside County Transportation Commission Transportation Expenditure Plan (the "Plan") and
Retail Transaction and Use Tax Ordinance which expressed the following concems in its
preamble:
"The transportation system in Riverside County is rapidly deteriorating and our
population and economy are growing rapidly. Maintenance and repairs of existing roadways and
improvements to relieve congestion cannot be accomplished with available funds. Without
additional funds, the system will bog down and pavement will crumble into permanent
disrepair.... Local governments must either generate revenues to expand our system and
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m a i n t a i n o u r i n v e s t m e n t s o r w a t c h t h e s y s t e m c o l l a p s e a n d e n d a n g e r t h e h e a l t h , w e l f a r e a n d
s a f e t y o f a l l R i v e r s i d e C o u n t y r e s i d e n t s . "
T h e g o a l s o f t h e P l a n a r e a s f o l l o w s :
M a i n t a i n a n d i m p r o v e t h e q u a l i t y o f l i f e i n R i v e r s i d e C o u n t y b y
s u p p l e m e n t i n g e x i s t i n g f u n d s f o r t r a n s p o r t a t i o n ;
p r o v i d e f o r a c c o u n t a b i l i t y i n t h e e x p e n d i t u r e o f t a x p a y e r f u n d s ;
p r o v i d e f o r e q u i t y i n t h e d i s t r i b u t i o n o f M e a s u r e " A " R e v e n u e s ; a n d
p r o v i d e f o r l o c a l c o n t r o l o f t h e T r a n s p o r t a t i o n I m p r o v e m e n t P r o g r a m .
T o a d d r e s s t h e c o n c e r n s a s e x p r e s s e d i n t h e p r e a m b l e , a n d t o a c c o m p l i s h i t s g o a l s a n d
p o l i c i e s , t h e o r d i n a n c e p r o v i d e d t h a t s a l e s t a x r e v e n u e s b e d i s t r i b u t e d t o t h e s p e c i f i c g e o g r a p h i c
a r e a s o f R i v e r s i d e C o u n t y ( i . e . , W e s t e m C o u n t y , C o a c h e l l a V a l l e y , a n d P a l o V e r d e V a l l e y )
b a s e d o n t h e i r p r o p o r t i o n a t e s h a r e o f r e v e n u e s g e n e r a t e d i n t h e C o u n t y , a n d t h a t f u n d s b e
a l l o c a t e d f o r h i g h w a y a n d r e g i o n a l a r t e r i a l p r o j e c t s , l o c a l s t r e e t s a n d r o a d s , t r a n s i t a n d c o m m u t e r
r a i l , n e w c o r r i d o r s a n d e c o n o m i c d e v e l o p m e n t . I n t h e W e s t e r n C o u n t y , $ 3 7 0 m i l l i o n i s t o b e
u s e d f o r n e w c o r r i d o r p r o j e c t s , $ 1 . 0 2 0 m i l l i o n f o r h i g h w a y p r o j e c t s , $ 3 0 0 m i l l i o n f o r r e g i o n a l
a r t e r i a l p r o j e c t s , $ 3 9 0 m i l l i o n f o r p u b l i c t r a n s i t , $ 9 7 0 m i l l i o n f o r l o c a l s t r e e t a n d r o a d
i m p r o v e m e n t s , $ 2 7 0 m i l l i o n f o r b o n d f i n a n c i n g c o s t s , a n d t h e r e m a i n i n g $ 4 0 m i l l i o n f o r
e c o n o m i c d e v e l o p m e n t p r o j e c t s . I n t h e C o a c h e l l a V a l l e y , f i f t y p e r c e n t i s t o b e e a r m a r k e d f o r i t s
h i g h w a y a n d r e g i o n a l a r t e r i a l s y s t e m , t h i r t y - f i v e p e r c e n t f o r l o c a l s t r e e t s a n d r o a d s , a n d t h e
r e m a i n i n g f i f t e e n p e r c e n t f o r t r a n s i t . A l l P a l o V e r d e V a l l e y f u n d s a r e d e s i g n a t e d f o r t h e
m a i n t e n a n c e o f l o c a l s t r e e t s a n d r o a d s .
R I S K F A C T O R S
E c o n o m y o f t h e C o u n t y a n d t h e S t a t e
T h e l e v e l o f S a l e s T a x R e v e n u e s c o l l e c t e d a t a n y t i m e i s d e p e n d e n t u p o n t h e l e v e l o f
r e t a i l s a l e s w i t h i n t h e C o u n t y , w h i c h l e v e l o f r e t a i l s a l e s i s , i n t u r n , d e p e n d e n t u p o n t h e l e v e l o f
e c o n o m i c a c t i v i t y i n t h e C o u n t y a n d i n t h e S t a t e g e n e r a l l y . T h e e c o n o m y o f t h e C o u n t y i s
c u r r e n t l y e x p e r i e n c i n g a s l o w d o w n a s e v i d e n c e d b y a n i n c r e a s e d u n e m p l o y m e n t r a t e , a
s l o w d o w n i n t o t a l p e r s o n a l i n c o m e a n d t a x a b l e " s a l e s , a d r o p i n r e s i d e n t i a l b u i l d i n g p e r m i t s , a
d e c l i n e i n t h e r a t e o f h o m e s a l e s a n d t h e m e d i a n p r i c e o f s i n g l e - f a m i l y h o m e s a n d c o n d o m i n i u m s
a n d a n i n c r e a s e i n n o t i c e s o f d e f a u l t o n m o r t g a g e l o a n s s e c u r e d b y h o m e s a n d c o n d o m i n i u m s .
A n y s u b s t a n t i a l d e t e r i o r a t i o n i n t h e l e v e l o f e c o n o m i c a c t i v i t y w i t h i n t h e C o u n t y o r i n t h e S t a t e
c o u l d h a v e a m a t e r i a l a d v e r s e i m p a c t u p o n t h e l e v e l o f S a l e s T a x R e v e n u e s a n d t h e r e f o r e u p o n
t h e a b i l i t y o f t h e C o m m i s s i o n t o m e e t i t s d e b t s e r v i c e o b l i g a t i o n s . F o r i n f o r m a t i o n r e l a t i n g t o
c u r r e n t e c o n o m i c c o n d i t i o n s w i t h i n t h e C o u n t y a n d t h e S t a t e s e e " A P P E N D I X B C O U N T Y
D E M O G R A P H I C A N D E C O N O M I C I N F O R M A T I O N . "
7 5 7 8 3 9 7 9 . 5
2 7
5 3
Limitations of the Liquidity Facility
The ability to obtain funds under the Liquidity Facility in accordance with its terms may
be limited by federal or State law. Bankruptcy, conservatorship, receivership and similar laws
goveming fmancial institutions or any issuer of a Liquidity Facility may prevent or restrict
payment under the Liquidity Facility. To the extent the short-term rating on any Series of the
2009 Bonds depends in any manner on the rating of the Liquidity Provider, the short-term ratings
on such Series of 2009 Bonds could be downgraded or withdrawn if such Liquidity Provider
were to be downgraded, placed on credit watch or have its ratings suspended or withdrawn or
were to refuse to perform under the Liquidity Facility.
The obligation of the Liquidity Providers under the Liquidity Facility to purchase
unremarketed 2009 Bonds of a Series is subject to the conditions and limitations set forth therein,
and is also subject to all rights and defenses available to contracting parties generally. The
Liquidity Facility is not a guaranty to pay the purchase price of any Series of 2009 Bonds
tendered for purchase. The Liquidity Facility is a general contract, subject to certain conditions
and limitations, and is not a letter of credit. Purchasers of any 2009 Bonds should consult their
legal counsel for an explanation of the differences between a general contract and a letter of
credit or guaranty. The following is included as a summary of selected differences and does not
purport to be complete or definitive.
In general, a letter of credit is an independent, special contract by a bank to pay a third
party such as a bond trustee holding the letter of credit for the benefit of owners of such bonds.
Banks are required by law to honor their letters of credit except in specified circumstances. If a
dispute were to develop between a bank and its borrower, except in limited circumstances, the
dispute should not jeopardize payment under the letter of credit because (a) the letter of credit
would be independent of the disputed contract between the borrower and the bank and (b) the
beneficiary of the letter of credit (typically, the bond trustee) would have direct rights under the
letter of credit. Further, and although there are defenses to payment of letters of credit, such
defenses are limited by law to specified circumstances.
In contrast, a standby bond purchase agreement, such as the Liquidity Facility, is merely
a general contract. No law expressly requires performance of the contract, although the non -
breaching party would be entitled to allowable damages if there were a breach of contract.
Although the Trustee is authorized to draw funds in accordance with the Liquidity Facility, the
Liquidity Provider has no independent obligation to the Trustee. If a dispute were to develop,
the Liquidity Provider will have all defenses allowed at law or in equity to their payment under
or other performance of the Liquidity Facility, including but not limited to disputes (whether
valid or not) regarding the authority of any party to enter into or perform under the Liquidity
Facility. In general, the provider of a standby bond purchase agreement has more defenses
against performance than the provider of a letter of credit.
A Liquidity Provider or the Commission may seek to have any future dispute resolved in
court and appealed to final judgment before it performs under the Liquidity Facility. Further,
even if the Commission were to prevail against the Liquidity Provider, a court would not
necessarily order the Liquidity Provider to perform under the Liquidity Facility; it could instead
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a w a r d d a m a g e s f o r b r e a c h o f c o n t r a c t t o t h e C o m m i s s i o n . A n y s u c h a w a r d w o u l d n o t n e c e s s a r i l y
b e i n a n a m o u n t s u f f i c i e n t t o p a y t h e p u r c h a s e p r i c e o f t h e a p p l i c a b l e S e r i e s o f 2 0 0 9 B o n d s .
T h e S a l e s T a x
W i t h l i m i t e d e x c e p t i o n s , t h e S a l e s T a x w i l l b e i m p o s e d u p o n t h e s a m e t r a n s a c t i o n s a n d
i t e m s s u b j e c t t o t h e s a l e s t a x l e v i e d s t a t e w i d e b y t h e S t a t e . T h e S t a t e L e g i s l a t u r e o r t h e v o t e r s
w i t h i n t h e S t a t e , t h r o u g h t h e i n i t i a t i v e p r o c e s s , c o u l d c h a n g e o r l i m i t t h e t r a n s a c t i o n s a n d i t e m s
u p o n w h i c h t h e s t a t e w i d e s a l e s t a x a n d t h e S a l e s T a x a r e i m p o s e d . A n y s u c h c h a n g e o r
l i m i t a t i o n c o u l d h a v e a n a d v e r s e i m p a c t o n t h e S a l e s T a x R e v e n u e s c o l l e c t e d . F o r a f u r t h e r
d e s c r i p t i o n o f t h e S a l e s T a x , s e e " T H E S A L E S T A X . "
P r o p o s i t i o n 2 1 8
O n N o v e m b e r 5 , 1 9 9 6 , v o t e r s i n t h e S t a t e a p p r o v e d a n i n i t i a t i v e k n o w n a s t h e R i g h t t o
V o t e o n T a x e s A c t ( " P r o p o s i t i o n 2 1 8 " ) . P r o p o s i t i o n 2 1 8 a d d e d A r t i c l e s X I I I C a n d X I I I D t o t h e
C a l i f o r n i a C o n s t i t u t i o n . A r t i c l e X I I I C r e q u i r e s m a j o r i t y v o t e r a p p r o v a l f o r t h e i m p o s i t i o n ,
e x t e n s i o n o r i n c r e a s e o f g e n e r a l t a x e s a n d t w o - t h i r d s v o t e r a p p r o v a l f o r t h e i m p o s i t i o n , e x t e n s i o n
o r i n c r e a s e o f s p e c i a l t a x e s b y a l o c a l g o v e r n m e n t , w h i c h i s d e f i n e d t o i n c l u d e l o c a l o r r e g i o n a l
g o v e r n m e n t a l a g e n c i e s s u c h a s t h e C o m m i s s i o n . T h e S a l e s T a x w a s a p p r o v e d b y m o r e t h a n
t w o - t h i r d s o f t h e v o t e r s i n R i v e r s i d e C o u n t y a n d i s t h e r e f o r e i n c o m p l i a n c e w i t h t h e r e q u i r e m e n t s
o f P r o p o s i t i o n 2 1 8 . A r t i c l e X I I I C a l s o r e m o v e s l i m i t a t i o n s t h a t m a y h a v e a p p l i e d t o t h e v o t e r
i n i t i a t i v e p o w e r w i t h r e g a r d t o r e d u c i n g o r r e p e a l i n g p r e v i o u s l y a u t h o r i z e d l o c a l t a x e s , e v e n
p r e v i o u s l y v o t e r - a p p r o v e d t a x e s l i k e t h e S a l e s T a x . I n t h e v i e w o f t h e C o m m i s s i o n , h o w e v e r ,
a n y a t t e m p t b y t h e v o t e r s t o u s e t h e i n i t i a t i v e p r o v i s i o n s o f P r o p o s i t i o n 2 1 8 t o r e s c i n d o r r e d u c e
t h e l e v y a n d c o l l e c t i o n o f t h e S a l e s T a x i n a m a n n e r w h i c h w o u l d p r e v e n t t h e p a y m e n t o f d e b t
s e r v i c e o n t h e 2 0 0 9 B o n d s , w o u l d v i o l a t e t h e C o n t r a c t s C l a u s e o f t h e U n i t e d S t a t e s C o n s t i t u t i o n
a n d , a c c o r d i n g l y , w o u l d b e p r e c l u d e d . T h e i n t e r p r e t a t i o n a n d a p p l i c a t i o n o f P r o p o s i t i o n 2 1 8 w i l l
u l t i m a t e l y b e d e t e r m i n e d b y t h e c o u r t s .
F u r t h e r I n i t i a t i v e s
P r o p o s i t i o n 2 1 8 w a s a d o p t e d a s a m e a s u r e t h a t q u a l i f i e d f o r t h e b a l l o t p u r s u a n t t o
C a l i f o r n i a ' s i n i t i a t i v e p r o c e s s . F r o m t i m e t o t i m e o t h e r i n i t i a t i v e m e a s u r e s c o u l d b e a d o p t e d ,
w h i c h m a y a f f e c t t h e C o m m i s s i o n ' s a b i l i t y t o l e v y a n d c o l l e c t t h e S a l e s T a x , o r c h a n g e t h e t y p e s
o f t r a n s a c t i o n s o r i t e m s s u b j e c t t o a S a l e s T a x .
L o s s o f T a x E x e m p t i o n
A s d i s c u s s e d u n d e r " T A X M A T T E R S , " i n t e r e s t o n t h e 2 0 0 9 B o n d s c o u l d b e c o m e
i n c l u d a b l e i n f e d e r a l g r o s s i n c o m e , p o s s i b l y f r o m t h e d a t e o f i s s u a n c e o f t h e 2 0 0 9 B o n d s , a s a
r e s u l t o f a c t s o r o m i s s i o n s o f t h e C o m m i s s i o n s u b s e q u e n t t o t h e i s s u a n c e o f t h e 2 0 0 9 B o n d s .
S h o u l d i n t e r e s t b e c o m e i n c l u d a b l e i n f e d e r a l g r o s s i n c o m e , t h e 2 0 0 9 B o n d s a r e n o t s u b j e c t t o
r e d e m p t i o n b y r e a s o n t h e r e o f a n d m a y r e m a i n o u t s t a n d i n g u n t i l m a t u r i t y .
7 5 7 8 3 9 7 9 . 5
2 9
5 5
FINANCIAL STATEMENTS
The financial statements of the Commission for the Fiscal Year ended June 30, 2008,
included in APPENDIX A of this Official Statement, have been audited by McGladrey & Pullen,
LLP, certified public accountants, as stated in their report therein. McGladrey & Pullen, LLP
has agreed to the inclusion of its report in APPENDIX A. McGladrey & Pullen, LLP has not
undertaken to update its report or to take any action intended or likely to elicit information
concerning the accuracy, completeness or fairness of the statements made in this Official
Statement, and no opinion is expressed by McGladrey & Pullen, LLP with respect to any event
subsequent to the date of its report. Except as described herein, the Commission represents that
there has been no material adverse change in its financial position since June 30, 2008.
VERIFICATION OF MATHEMATICAL COMPUTATIONS
, certified public accountants (the "Verification Agent"), will deliver a
report stating that the Verification Agent has verified the accuracy of mathematical computations
concerning the adequacy of the maturing principal amounts of and interest earned on the
Defeasance Securities initially deposited in the Redemption Fund to provide for the payment of
the interest due on each of the Refunded Bonds to and including the Redemption Date, and to
pay on the Redemption Date the redemption price thereof.
The report of the Verification Agent will include the statement that the scope of their
engagement was limited to verifying the mathematical accuracy of the computations contained in
such schedules provided to them and that they have no obligations to update their report because
of event occurring, or data or information coming to their attention, subsequent to the date of
their report.
LITIGATION
There is not now pending any litigation restraining or enjoining the issuance or delivery
of the 2009 Bonds or questioning or affecting the validity of the 2009 Bonds or the proceedings
and authority under which they are to be issued. Neither the creation, organization or existence
of the Commission, nor the title of the present members of the Commission to their respective
offices, is being contested.
TAX MATTERS
In the opinion of Orrick, Herrington & Sutcliffe LLP, Bond Counsel to the Commission
("Bond Counsel'), based upon an analysis of existing laws, regulations, rulings and court
decisions, and assuming, among other matters, the accuracy of certain representations and
compliance with certain covenants, interest on the 2009 Bonds is excluded from gross income
for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986 (the
"Code") and is exempt from State of California personal income taxes. In the further opinion of
Bond Counsel, interest on the 2009 Bonds is not a specific preference item for purposes of the
federal individual and corporate alternative minimum taxes, nor is it included in adjusted current
earnings when calculating corporate alternative minimum taxable income. A complete copy of
the proposed form of the opinion of Bond Counsel is set forth in APPENDIX E.
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To the extent the issue price of any maturity of the 2009 Bonds is less than the amount to
be paid at maturity of such 2009 Bonds (excluding amounts stated to be interest and payable at
least annually over the term of such 2009 Bonds), the difference constitutes "original issue
discount," the accrual of which, to the extent properly allocable to each beneficial owner thereof,
is treated as interest on the 2009 Bonds which is excluded from gross income for federal income
tax purposes and State of Califomia personal income taxes. For this purpose, the issue price of a
particular maturity of the 2009 Bonds is the first price at which a substantial amount of such
maturity of the 2009 Bonds is sold to the public (excluding bond houses, brokers, or similar
persons or organizations acting in the capacity of underwriters, placement agents or wholesalers).
The original issue discount with respect to any maturity of the 2009 Bonds accrues daily over the
term to maturity of such 2009 Bonds on the basis of a constant interest rate compounded
semiannually (with straight-line interpolations between compounding dates). The accruing
original issue discount is added to the adjusted basis of such 2009 Bonds to determine taxable
gain or loss upon disposition (including sale, redemption, or payment on maturity) of such 2009
Bonds. Beneficial owners of the 2009 Bonds should consult their own tax advisors with respect
to the tax consequences of ownership of 2009 Bonds with original issue discount, including the
treatment of beneficial owners who do not purchase such 2009 Bonds in the original offering to
the public at the first price at which a substantial amount of such 2009 Bonds is sold to the
public.
2009 Bonds purchased, whether at original issuance or otherwise, for an amount higher
than their principal amount payable at maturity (or, in some cases, at their earlier call date)
("Premium 2009 Bonds") will be treated as having amortizable bond premium. No deduction is
allowable for the amortizable bond premium in the case of bonds, like the Premium 2009 Bonds,
the interest on which is excluded from gross income for federal income tax purposes. However,
the amount of tax-exempt interest received, and a beneficial owner's basis in a Premium 2009
Bond, will be reduced by the amount of amortizable bond premium properly allocable to such
beneficial owner. Beneficial owners of Premium 2009 Bonds should consult their own tax
advisors with respect to the proper treatment of amortizable bond premium in their particular
circumstances.
The Code imposes various restrictions, conditions and requirements relating to the
exclusion from gross income for federal income tax purposes of interest on obligations such as
the 2009 Bonds. The Commission has made certain representations and covenanted to comply
with certain restrictions, conditions and requirements designed to ensure that interest on the 2009
Bonds will not be included in federal gross income. Inaccuracy of these representations or
failure to comply with these covenants may result in interest on the 2009 Bonds being included
in gross income for federal income tax purposes, possibly from the date of original issuance of
the 2009 Bonds. The opinion of Bond Counsel assumes the accuracy of these representations
and compliance with these covenants. Bond Counsel has not undertaken to determine (or to
inform any person) whether any actions taken (or not taken), or events occurring (or not
occurring), or any other matters coming to Bond Counsel's attention after the date of issuance of
the 2009 Bonds may adversely affect the value of, or the tax status of interest on, the 2009
Bonds. Accordingly, the opinion of Bond Counsel is not intended to, and may not, be relied
upon in connection with any such actions, events or matters.
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Although Bond Counsel is of the opinion that interest on the 2009 Bonds is excluded
from gross income for federal income tax purposes and is exempt from State of California
personal income taxes, the ownership or disposition of, or the accrual or receipt of interest on,
the 2009 Bonds may otherwise affect a beneficial owner's federal, state or local tax liability.
The nature and extent of these other tax consequences depends upon the particular tax status of
the beneficial owner or the beneficial owner's other items of income or deduction. Bond
Counsel expresses no opinion regarding any such other tax consequences.
Future legislative proposals, if enacted into law, clarification of the Code or court
decisions may cause interest on the 2009 Bonds to be subject, directly or indirectly, to federal
income taxation or to be subject to or exempted from state income taxation, or otherwise prevent
beneficial owners from realizing the full current benefit of the tax status of such interest. The
introduction or enactment of any such future legislative proposals, clarification of the Code or
court decisions may also affect the market price for, or marketability of, the 2009 Bonds.
Prospective purchasers of the 2009 Bonds should consult their own tax advisors regarding any
pending or proposed federal or state tax legislation, regulations or litigation, as to which Bond
Counsel expresses no opinion.
The opinion of Bond Counsel is based on current legal authority, covers certain matters
not directly addressed by such authorities, and represents Bond Counsel's judgment as to the
proper treatment of the 2009 Bonds for federal income tax purposes. It is not binding on the
Internal Revenue Service ("IRS") or the courts. Furthermore, Bond Counsel cannot give and has
not given any opinion or assurance about the future activities of the Commission or about the
effect of future changes in the Code, the applicable regulations, the interpretation thereof or the
enforcement thereof by the IRS. The Commission has covenanted, however, to comply with the
requirements of the Code.
Bond Counsel's engagement with respect to the 2009 Bonds ends with the issuance of the
2009 Bonds, and, unless separately engaged, Bond Counsel is not obligated to defend the
Commission or the beneficial owners regarding the tax-exempt status of the 2009 Bonds in the
event of an audit examination by the IRS. Under current procedures, parties other than the
Commission and their appointed counsel, including the beneficial owners, would have little, if
any, right to participate in the audit examination process. Moreover, because achieving judicial
review in connection with an audit examination of tax-exempt bonds is difficult, obtaining an
independent review of IRS positions with which the Commission legitimately disagrees, may not
be practicable. Any action of the IRS, including but not limited to selection of the 2009 Bonds
for audit, or the course or result of such audit, or an audit of bonds presenting similar tax issues
may affect the market price for, or the marketability of, the 2009 Bonds, and may cause the
Commission or the beneficial owners to incur significant expense.
CERTAIN LEGAL MATTERS
Orrick, Herrington & Sutcliffe LLP, Bond Counsel, will render an opinion with respect to
the validity of the 2009 Bonds. The proposed form of such approving opinion is attached hereto
as APPENDIX E. Bond Counsel assumes no responsibility for the accuracy, completeness or
fairness of this Official Statement. Compensation paid to Bond Counsel, Disclosure Counsel and
Underwriters' Counsel is conditioned upon the successful issuance of the 2009 Bonds. Certain
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"
"
l e g a l m a t t e r s w i l l b e p a s s e d u p o n f o r t h e C o m m i s s i o n b y F u l b r i g h t & J a w o r s k i L . L . P . , L o s
A n g e l e s , C a l i f o r n i a , a s D i s c l o s u r e C o u n s e l , a n d b y B e s t B e s t & K r i e g e r L L P , R i v e r s i d e ,
C a l i f o r n i a , t h e G e n e r a l C o u n s e l f o r t h e C o m m i s s i o n . C e r t a i n l e g a l m a t t e r s w i l l b e p a s s e d u p o n
f o r t h e U n d e r w r i t e r s b y H a w k i n s D e l a f i e l d & W o o d L L P , S a n F r a n c i s c o , C a l i f o r n i a .
R A T I N G S
I t i s e x p e c t e d t h a t M o o d y ' s I n v e s t o r s S e r v i c e , I n c . , F i t c h R a t i n g s a n d S t a n d a r d & P o o r ' s
R a t i n g s G r o u p , a d i v i s i o n o f T h e M c G r a w - H i l l C o m p a n i e s , I n c . , w i l l a s s i g n e a c h S e r i e s o f t h e
2 0 0 9 B o n d s t h e l o n g - t e r m m u n i c i p a l b o n d c r e d i t r a t i n g s o f " _ " a n d " , " r e s p e c t i v e l y ,
a n d t h e s h o r t - t e r m l i q u i d i t y r a t i n g s o f " , " " " a n d " _ " q t y g r e s p e c t i v e l y . S u c h s h o r t - t e r m
l i q u i d i t y r a t i n g s a r e b a s e d o n t h e u n d e r s t a n d i n g t h a t t h e L i q u i d i t y F a c i l i t y w i l l b e d e l i v e r e d b y
t h e L i q u i d i t y P r o v i d e r c o n c u r r e n t l y w i t h t h e i s s u a n c e o f t h e 2 0 0 9 B o n d s . E a c h s u c h r a t i n g
s h o u l d b e e v a l u a t e d i n d e p e n d e n t l y o f a n y o t h e r r a t i n g . S u c h r a t i n g s r e f l e c t o n l y t h e v i e w s o f
s u c h o r g a n i z a t i o n s a n d a n y d e s i r e d e x p l a n a t i o n o f t h e s i g n i f i c a n c e o f s u c h r a t i n g s s h o u l d b e
o b t a i n e d f r o m t h e r a t i n g a g e n c y f u r n i s h i n g t h e s a m e .
T h e r a t i n g s d e s c r i b e d a b o v e d o n o t c o n s t i t u t e a r e c o m m e n d a t i o n t o b u y , s e l l o r h o l d t h e
2 0 0 9 B o n d s . T h e C o m m i s s i o n h a s f u r n i s h e d t o t h e r a t i n g a g e n c i e s c e r t a i n i n f o r m a t i o n
r e s p e c t i n g t h e 2 0 0 9 B o n d s a n d t h e C o m m i s s i o n . G e n e r a l l y , r a t i n g a g e n c i e s b a s e t h e i r r a t i n g s o n
s u c h i n f o r m a t i o n a n d m a t e r i a l s a n d t h e i r o w n i n v e s t i g a t i o n s , s t u d i e s a n d a s s u m p t i o n s . T h e
r a t i n g s a r e s u b j e c t t o r e v i s i o n o r w i t h d r a w a l a t a n y t i m e b y t h e r a t i n g a g e n c i e s , a n d t h e r e i s n o
a s s u r a n c e t h a t t h e r a t i n g s w i l l c o n t i n u e f o r a n y p e r i o d o f t i m e o r t h a t t h e y w i l l n o t b e l o w e r e d o r
w i t h d r a w n . T h e C o m m i s s i o n a n d t h e U n d e r w r i t e r s u n d e r t a k e n o r e s p o n s i b i l i t y e i t h e r t o b r i n g t o
t h e a t t e n t i o n o f t h e o w n e r s o f t h e 2 0 0 9 B o n d s t h e d o w n w a r d r e v i s i o n o r w i t h d r a w a l o f a n y r a t i n g
o b t a i n e d o r t o o p p o s e a n y s u c h r e v i s i o n o r w i t h d r a w a l . A n y d o w n w a r d r e v i s i o n o r w i t h d r a w a l
o f t h e r a t i n g s m a y h a v e a n a d v e r s e e f f e c t o n t h e m a r k e t p r i c e o f t h e 2 0 0 9 B o n d s o r t h e a b i l i t y t o
r e m a r k e t t h e 2 0 0 9 B o n d s .
R E M A R K E T I N G A G E N T S
B a r c l a y s C a p i t a l I n c . h a s b e e n a p p o i n t e d t o s e r v e a s R e m a r k e t i n g A g e n t f o r t h e 2 0 0 9
S e r i e s A B o n d s . E . J . D e L a R o s a & C o . I n c . h a s b e e n a p p o i n t e d t o s e r v e a s R e m a r k e t i n g A g e n t
f o r t h e 2 0 0 9 S e r i e s B B o n d s . B a c k s t r o m M c C a r l y B e r r y & C o . , L L C h a s b e e n a p p o i n t e d t o
s e r v e a s R e m a r k e t i n g A g e n t f o r t h e 2 0 0 9 S e r i e s C B o n d s . E a c h R e m a r k e t i n g A g e n t w i l l c a r r y
o u t t h e d u t i e s a n d o b l i g a t i o n s p r o v i d e d f o r s u c h R e m a r k e t i n g A g e n t u n d e r a n d i n a c c o r d a n c e
w i t h t h e p r o v i s i o n s o f t h e I n d e n t u r e a n d t h e r e l a t e d R e m a r k e t i n g A g r e e m e n t , e a c h d a t e d a s o f
O c t o b e r I , 2 0 0 9 , b y a n d b e t w e e n t h e C o m m i s s i o n a n d t h e a p p l i c a b l e R e m a r k e t i n g A g e n t .
U N D E R W R I T I N G
B a r c l a y s C a p i t a l I n c . , a s u n d e r w r i t e r o f t h e 2 0 0 9 S e r i e s A B o n d s , h a s a g r e e d , s u b j e c t t o
c e r t a i n c o n d i t i o n s , t o p u r c h a s e t h e 2 0 0 9 S e r i e s A B o n d s a t a p r i c e o f $ ( r e p r e s e n t i n g
t h e a g g r e g a t e p r i n c i p a l a m o u n t o f t h e 2 0 0 9 S e r i e s A B o n d s , l e s s a n u n d e r w r i t e r ' s d i s c o u n t o f
$ ) . T h e P u r c h a s e C o n t r a c t f o r t h e 2 0 0 9 S e r i e s A B o n d s p r o v i d e s t h a t t h e U n d e r w r i t e r o f
t h e 2 0 0 9 S e r i e s A B o n d s w i l l p u r c h a s e a l l t h e 2 0 0 9 S e r i e s A B o n d s i f a n y a r e p u r c h a s e d .
7 5 7 8 3 9 7 9 . 5
3 3
5 9
E.J. De La Rosa & Co. Inc., as underwriter of the 2009 Series B Bonds, has agreed,
subject to certain conditions, to purchase the 2009 Series B Bonds at a price of $
(representing the aggregate principal amount of the 2009 Series B Bonds, less an underwriter's
discount of $ ). The Purchase Contract for the 2009 Series B Bonds provides that the
Underwriter of the 2009 Series B Bonds will purchase all the 2009 Series B Bonds if any are
purchased.
Backstrom McCarly Berry & Co., LLC, as underwriter of the 2009 Series C Bonds, has
agreed, subject to certain conditions, to purchase the 2009 Series C Bonds at a price of
$ (representing the aggregate principal amount of the 2009 Series C Bonds, less an
underwriter's discount of $ ). The Purchase Contract for the 2009 Series C Bonds provides
that the Underwriter of the 2009 Series C Bonds will purchase all the 2009 Series C Bonds if any
are purchased.
FINANCIAL ADVISOR
The Commission has retained Fieldman, Rolapp & Associates, Irvine, California, as
Financial Advisor in connection with the authorization and delivery of the 2009 Bonds. The
Financial Advisor is not obligated to undertake, and has not undertaken to make, an independent
verification or assume responsibility for he accuracy, completeness or fairness of the information
contained in this Official Statement. The Financial Advisor is an independent financial advisory
firm and is not engaged in the business of underwriting, trading or distributing municipal
securities or other public securities. Compensation paid to the Financial Advisor is contingent
upon the successful issuance of the 2009 Bonds.
CONTINUING DISCLOSURE
The Commission has agreed to execute the Continuing Disclosure Agreement and will
covenant therein for the benefit of the beneficial owners of the 2009 Bonds to provide certain
financial information and operating data relating to the Commission and the Sales Tax by not
later than days after the end of the Commission's prior fiscal year (the "Annual Reports"),
and to provide notices of the occurrence of certain enumerated events (the "Listed Events"). The
Annual Reports and notices of Listed Events will be filed with the MSRB. See APPENDIX G —
"FORM OF CONTINUING DISCLOSURE UNDERTAKING." The Commission has never
failed to comply in all material respects with any previous continuing disclosure undertaking
pursuant to the Rule to provide annual reports or notices of material events.
MISCELLANEOUS
The references herein to the Act and the Indenture are brief outlines of certain provisions
thereof. Such outlines do not purport to be complete and for full and complete statements of
such provisions reference is made to said documents or the Act, as the case may be. Copies of
the documents mentioned under this heading are available for inspection at the Commission and
following delivery of the 2009 Bonds will be on file at the offices of the Trustee in Los Angeles,
California. References are made herein to certain documents and reports which are brief
summaries thereof which do not purport to be complete or definitive. Reference is made to such
documents and reports for full and complete statements of the content thereof.
75783979.5
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A n y s t a t e m e n t i n t h i s O f f i c i a l S t a t e m e n t i n v o l v i n g m a t t e r s o f o p i n i o n , w h e t h e r o r n o t
e x p r e s s l y s o s t a t e d , a r e i n t e n d e d a s s u c h a n d n o t a s r e p r e s e n t a t i o n s o f f a c t . T h i s O f f i c i a l
S t a t e m e n t i s n o t t o b e c o n s t r u e d a s a c o n t r a c t o r a g r e e m e n t b e t w e e n t h e C o m m i s s i o n a n d t h e
p u r c h a s e r s o r H o l d e r s o f a n y o f t h e 2 0 0 9 B o n d s .
T h e e x e c u t i o n a n d d e l i v e r y o f t h i s O f f i c i a l S t a t e m e n t h a s b e e n d u l y a u t h o r i z e d b y t h e
C o m m i s s i o n .
7 5 7 8 3 9 7 9 . 5
R I V E R S I D E C O U N T Y T R A N S P O R T A T I O N
C O M M I S S I O N
B y :
E x e c u t i v e D i r e c t o r
3 5
6 1
"
7 5 7 8 3 9 7 9 . 5
A P P E N D I X A
C O M M I S S I O N A U D I T E D F I N A N C I A L S T A T E M E N T S F O R
F I S C A L Y E A R E N D E D J U N E 3 0 , 2 0 0 8
A - I
6 2
APPENDIX B
COUNTY DEMOGRAPHIC AND ECONOMIC INFORMATION
Set forth below is certain demographic and economic information with respect to the
County of Riverside (the "County"). Such information was provided by the County except as
otherwise indicated.
Population
According to the State Department of Finance, Demographic Research Unit, the County's
population was estimated at 2,107,653 as of January 1, 2009, reflecting a 0.1% increase over
January 1, 2008.
The largest cities in the County are the cities of Riverside, Moreno Valley, Corona,
Murrieta, Temecula, Hemet, Indio and Cathedral City. The areas of most rapid population
growth continue to he those more populated and industrialized cities in the western and central
regions of the County and the southwestern unincorporated region of the County between Sun
City and Temecula.
The following table sets forth annual population figures as of January 1 of each year for
cities located within the County for each of the years listed:
75783979.5
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CITY
Banning
Beaumont
Blythe
Calimesa
Canyon Lake
Cathedral City
Coachella
Corona
Desert Hot Springs
Hemet
Indian Wells
Indio
Lake Elsinore
La Quinta
Menifee
Moreno Valley
Murrieta
Norco
Palm Desert
Palm Springs
Perris
Rancho Mirage
Riverside
San Jacinto
Temecula
Wildomar
TOTALS
Incorporated
Unincorporated
County -Wide
California
COUNTY OF RIVERSIDE
POPULATION OF CITIES WITHIN THE COUNTY
(As of January 1)
1990 2000 2005 2006 2007 2008 2009
20,570 23,562 27,996 28,185 28,174 28,148 28,457
9,685 11,384 19,051 23,238 28,209 31,317 32,403
8,428 12,155 22,052 22,234 22,608 21,627 21,329
0 7,139 7,491 7,475 7,435 7,423 7,498
0 9,952 10,950 10,983 10,955 10,994 11,128
30,085 42,647 50,819 51,294 52,045 51,972 52,447
16,896 22,724 30,879 35,354 38,437 40,317 41,000
76,095 124,966 144,600 145,265 145,847 146,698 148,597
11,668 16,582 20,820 23,459 24,856 25,939 26,552
36,094 58,812 67,565 70,728 72,537 73,205 74,361
2,647 3,816 4,796 4,885 4,934 5,000 5,093
36,793 49,116 66,358 71,949 77,046 80,962 82,230
18,285 28,928 38,185 41,156 47,568 49,556 50,267
11,215 23,694 36,278 38,500 41,039 42,743 43,778
0 0 0 0 0 0 67,705
118,779 142,381 165,935 175,294 180,228 182,945 186,301
0 44,282 85,328 93,221 97,031 99,576 100,714
23,302 24,157 26,783 27,355 27,329 27,143 27,160
23,252 41,155 49,490 49,774 49,717 50,686 51,509
40,181 42,807 45,877 46,629 46,796 47,019 47,601
21,460 36,189 44,758 47,335 50,597 53,340 54,323
9,778 13,249 16,476 16,740 16,923 16,975 17,180
226,505 255,166 286,563 288,984 291,812 296,191 300,430
16,210 23,779 28,540 31,194 34,297 35,491 36,477
27,099 57,716 81,681 93,673 97,141 99,873 102,604
0 0 0 0 0 0 31,321
385,386 1,124,666 1,379,271 1,444,904 1,493,561 1,525,140 1,648,465
785,027 420,721 504,464 517,110 536,754 553,461 459,188
1,170,413 1,545,387 1,883,735 1,962,014 2,030,315 2,078,601 2,107,653
29,473,000 33,873,086 36,676,931 37,086,191 37,472,074 37,883,992 38,292,687
Source: 1990 and 2000 data is from U.S. Census Bureau; 2005, 2006, 2007, 2008 and 2009 data is from the State Department of
Finance, Demographic Research Unit (with 2000 DRU Benchmark).
Effective Buying Income
"Effective Buying Income" is defined as personal income less personal tax and nontax
payments, a number often referred to as "disposable" or "after-tax" income. Personal income is
the aggregate of wages and salaries, other than labor -related income (such as employer
contributions to private pension funds), proprietor's income, rental income (which includes
imputed rental income of owner -occupants of non -farm dwellings), dividends paid by
corporations, interest income from all sources and transfer payments (such as pensions and
welfare assistance). Deducted from this total are personal taxes (federal, state and local, nontax
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p a y m e n t s f i n e s , f e e s , p e n a l t i e s , e t c . ) a n d p e r s o n a l c o n t r i b u t i o n s t o s o c i a l s e c u r i t y i n s u r a n c e a n d
f e d e r a l r e t i r e m e n t p a y r o l l d e d u c t i o n s . A c c o r d i n g t o U . S . g o v e r n m e n t d e f i n i t i o n s , t h e r e s u l t a n t
f i g u r e i s c o m m o n l y k n o w n a s " d i s p o s a b l e p e r s o n a l i n c o m e . "
T h e f o l l o w i n g t a b l e s u m m a r i z e s t h e t o t a l e f f e c t i v e b u y i n g i n c o m e f o r t h e C o u n t y a n d t h e
S t a t e f o r t h e p e r i o d 2 0 0 4 t h r o u g h 2 0 0 8 .
R I V E R S I D E C O U N T Y A N D C A L I F O R N I A
T O T A L E F F E C T I V E B U Y I N G I N C O M E ,
M E D I A N H O U S E H O L D E F F E C T I V E B U Y I N G I N C O M E A N D
P E R C E N T O F H O U S E H O L D S W I T H I N C O M E S O V E R $ 5 0 , 0 0 0 ( 1 )
T o t a l M e d i a n H o u s e h o l d P e r c e n t o f
E f f e c t i v e B u y i n g E f f e c t i v e B u y i n g H o u s e h o l d s w i t h
I n c o m e ) I n c o m e I n c o m e o v e r $ 5 0 , 0 0 0
2 0 0 4
R i v e r s i d e C o u n t y 2 7 , 6 2 3 , 7 4 3 3 9 , 3 2 1 3 6 . 0
C a l i f o r n i a 6 7 4 , 7 2 1 , 0 2 0 4 2 , 9 2 4 4 1 . 2
2 0 0 5
R i v e r s i d e C o u n t y 2 9 , 4 6 8 , 2 0 8 4 0 , 2 7 5 3 7 . 1
C a l i f o r n i a 7 0 5 , 1 0 8 , 4 1 0 4 3 , 9 1 5 4 2 . 5
2 0 0 6
R i v e r s i d e C o u n t y 3 2 , 0 0 4 , 4 1 8 4 1 , 3 2 6 3 8 . 9
C a l i f o r n i a 7 2 0 , 7 9 9 , 0 4 8 4 4 , 6 8 1 4 3 . 7
2 0 0 7
R i v e r s i d e C o u n t y 3 5 , 6 5 6 , 6 2 0 4 3 , 4 9 0 4 1 . 8
C a l i f o r n i a 7 6 4 , 1 2 0 , 9 8 2 4 6 , 2 7 5 4 5 . 6
2 0 0 8
R i v e r s i d e C o u n t y 3 8 , 6 3 1 , 3 6 5 4 5 , 3 1 0 4 4 . 3
C a l i f o r n i a 8 1 4 , 8 9 4 , 4 3 7 4 8 , 2 0 3 4 7 . 9
S o u r c e : " S u r v e y o f B u y i n g P o w e r , " S a l e s & M a r k e t i n g M a n a g e m e n t M a g a z i n e , d a t e d 2 0 0 4 , 2 0 0 5 a n d 2 0 0 8 , a n d
D e m o g r a p h i c s U S A , T r a d e D i m e n s i o n s f o r 2 0 0 6 a n d 2 0 0 7 .
( J ) E s t i m a t e d .
( 2 ) D o l l a r s i n t h o u s a n d s .
7 5 7 8 3 9 7 9 . 5
B - 3
6 5
Industry and Employment
The County is a part of the Riverside -San Bernardino Primary Metropolitan Statistical
Area ("PMSA"), which includes all of Riverside and San Bernardino Counties. The following
table sets forth the annual average employment by industry for the PMSA.
RIVERSIDE-SAN BERNARDINO-ONTARIO PMSA
ANNUAL AVERAGE EMPLOYMENT BY INDUSTRY(I)
(In Thousands)
INDUSTRY
2003 2004 2005 2006 2007
Agriculture 20.3 18.7 18.3 17.2 16.8
Construction 99.0 111.8 123.3 129.5 112.8
Finance, Insurance
and Real Estate 42.6 45.7 49.0 51.8 50.1
Government 211.6 212.5 220.4 224.2 225.7
Manufacturing: 116.1 120.1 121.0 124.0 118.9
Nondurables 33.7 34.6 35.0 36.4 36.4
Durables 82.4 85.5 86.1 87.6 82.5
Natural Resources
and Mining 1.2 1.2 1.4 1.4 1.4
Retail Trade 142.7 153.8 165.7 171.5 175.4
Prof., Educ. and
other Services 378.6 399.9 416.5 436.2 446.3
Trans., Whse. and
Utilities 50.1 55.5 60.2 63.8 66.7
Wholesale Trade 43.5 45.6 49.9 53.8 56.4
Information, Pub. and
Telecom. 13.9 14.0 14.5 15.7 15.2
Total, All Industries 1,119.4 1,178.7 1,240.3 1,288.4 1,285.5
Source: State Employment Development Department, Labor Market Information Division.
In The employment figures by Industry which are shown above are not directly comparable to the "Total, All Industries"
employment figures due to rounded data. 2008 annual figures are unavailable. June 2008 and preliminary June 2009
figures are set forth on the following table.
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T h e f o l l o w i n g t a b l e s e t s f o r t h a n e m p l o y m e n t d a t a c o m p a r i s o n b y i n d u s t r y f o r t h e p e r i o d
J u n e 2 0 0 8 a n d J u n e 2 0 0 9 . J u n e 2 0 0 9 f i g u r e s a r e p r e l i m i n a r y .
R I V E R S I D E - S A N B E R N A R D I N O - O N T A R I O P M S A
E M P L O Y M E N T B Y I N D U S T R Y F O R J U N E 2 0 0 8 A N D J U N E 2 0 0 9 1 1 1
( I n T h o u s a n d s )
I N D U S T R Y J u n e 2 0 0 8 J u n e 2 0 0 9 ( 1 ) C h a n g e
T o t a l F a r m 2 3 , 2 0 0 2 3 , 1 0 0 ( 1
T o t a l N o n f a r m 1 , 2 3 1 , 8 0 0 1 , 1 5 5 , 5 0 0 ( 7 6 , 3
M i n i n g a n d L o g g i n g 1 , 2 0 0 9 0 0 ( 3
C o n s t r u c t i o n 9 3 , 8 0 0 7 1 , 4 0 0 ( 2 2 , 4
M a n u f a c t u r i n g 1 0 8 , 3 0 0 9 4 , 7 0 0 ( 1 3 , 6
T r a d e , T r a n s p o r t a t i o n &
U t i l i t i e s 2 9 3 , 3 0 0 2 7 1 , 7 0 0 ( 2 1 , 6
I n f o r m a t i o n 1 4 , 8 0 0 1 3 , 5 0 0 ( 1 , 3
F i n a n c i a l A d v i s o r 4 6 , 9 0 0 4 3 , 1 0 0 ( 3 , 8
P r o f e s s i o n a l & B u s i n e s s
S e r v i c e s 1 3 7 , 1 0 0 1 2 9 , 9 0 0 ( 7 , 2
E d u c a t i o n a l & H e a l t h
S e r v i c e s 1 3 0 , 6 0 0 1 3 3 , 6 0 0 3 , 0
L e i s u r e & H o s p i t a l i t y 1 3 1 , 1 0 0 1 2 5 , 7 0 0 ( 5 , 4
O t h e r S e r v i c e s 4 2 , 2 0 0 4 0 , 1 0 0 ( 2 , 1
G o v e r n m e n t 2 3 2 , 5 0 0 2 3 0 , 9 0 0 ( 1 , 6
T o t a l A l l I n d u s t r i e s 1 , 2 5 5 , 0 0 0 1 , 1 7 8 , 6 0 0 ( 7 6 , 4
S o u r c e : S t a t e E m p l o y m e n t D e v e l o p m e n t D e p a r t m e n t , L a b o r M a r k e t I n f o r m a t i o n D i v i s i o n .
C I ) P r e l i m i n a r y , s u b j e c t t o c h a n g e . T h e e m p l o y m e n t f i g u r e s b y I n d u s t r y w h i c h a r e s h o w n a b o v e a r e n o t d i r e c t l y c o m p a r a b l e t o
t h e " T o t a l , A l l I n d u s t r i e s " e m p l o y m e n t f i g u r e s d u e t o r o u n d e d d a t a .
7 5 7 8 3 9 7 9 . 5
B - 5
6 7
The following table sets forth certain of the ten major employers located in the County as
of 2008:
COUNTY OF RIVERSIDE
CERTAIN MAJOR EMPLOYERS")
(2008)
Company Name
The County of Riverside
March Air Reserve Base
University of California, Riverside
Stater Brothers Markets
Pechanga Resort & Casino
Abbott Vascular
Riverside Unified School District
Riverside Community College District
Kaiser Permanente Riverside Med. Center
Temecula Valley USD
Product/Service
County Government
Government/Military
College/University
Grocery Retailer
Casino/Resort
Medical Device Manufacturer
Education
Higher Education
Health Care
Education
No. of Local
Employees")
19,595
8,400
6,657
6,425
4,800
4,500
4,041
3,753
3,200
2,952
Source: The Business Press 2008 Book of Lists.
(') Certain major employers in the County may have been excluded because of the data collection methodology used by The
Business Press.
(2) Includes employees within the County; includes, under certain circumstances, temporary, seasonal and per diem
employees.
Unemployment statistics for the County, the State and the United States are set forth in
the following table.
COUNTY OF RIVERSIDE
COUNTY, STATE AND NATIONAL UNEMPLOYMENT DATA
2004 2005 2006 2007 2008 20091t1
County(I)
California(1)
United States
5.7%
6.2
5.5
5.1%
5.4
5.1
5.0%
4.9
4.6
6.2%
5.4
4.6
8.6%
7.2
5.8
13.9%
11.6
9.7
Source: State of California Employment Development Department Labor Market Information Division; U.S. Bureau of Labor
Statistics.
(I) Data is not seasonally adjusted. The unemployment data for the County and State is calculated using unrounded data.
2009 figures as of June 2009.
Commercial Activity
Commercial activity is an important factor in the County's economy. Much of the
County's commercial activity is concentrated in central business districts or small neighborhood
commercial centers in cities. There are nine regional shopping malls in the County: Riverside
Plaza, Galleria at Tyler (Riverside), Palm Springs Mall, Desert Fashion Mall, Indio Fashion
Mall, Hemet Valley Mall, Palm Desert Town Center, Moreno Valley Mall at Towngate and
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Temecula Promenade Mall. There are also two factory outlet malls (Desert Hills Factory Stores
and Lake Elsinore Outlet Center) and over 200 area centers in the County.
The following table sets forth taxable transactions in the County for the years 2003
through 2007.
COUNTY OF RIVERSIDE
TAXABLE SALES TRANSACTIONS")
(In Thousands)
2003 2004 2005 2006 2007
Apparel Stores $ 746,01! $ 867,27( $ 990,12! $ 1,080,38! $ 1,171,10
General Merchandise Stores 2,427,411 2,756,01! 3,021,901 3,250,377 3,272,66
Drug Stores 244,56( 270,31( 282,56( 303,17' 320,46
Food Stores 1,028,39: 1,079,97: 1,197,431 1,309,78: 1,352,60
Eating and Drinking Places 1,713,63: 1,940,61( 2,157,80: 2,316,42: 2,338,03
Home Furnishing and
Appliances 691,051 862,55' 964,62! 948,217 843,94
Building Materials and
Farm Implements 1,868,99: 2,476,09: 2,756,28( 2,738,15: 1,961,91
Auto Dealers Supplies 3,662,151 4,179,94( 4,474,56( 4,326,04( 4,301,38
Service Stations 1,536,24( 1,855,26: 2,277,08: 2,630,71( 2,835,69
Other Retail Stores 2050,99 2,361,18: 2,641,98: 2,860 18' 2,794,79
Retail Stores Total $16,030,95: $18,715,94I $20,839,21: S21,842,34! $21,242,51
All Other Outlets 5,678.18: 6,521,19! 7,417,27' 7,973,89: 7.781.09
Total All Outlets $21,709,13! $25,237,14/ $28,256,49 829,816,23" $29,023,60
Source: California State Board of Equalization, Research and Statistics Division.
(I) 2008 annual figures unavailable. First and second quarter figures for 2008 are set forth below. The taxable transaction
figures by industry which are shown above may not be directly comparable to the "Total, All Outlets" figures due to
rounded data.
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The following table sets forth taxable transactions in the County for first and second
quarters of 2008.
COUNTY OF'RIVERSIDE
2008 TAXABLE SALES TRANSACTIONS")
(In Thousands)
First Second
uarter uarter
Apparel Stores $273,432 $273,863
General Merchandise 807,690 838,724
328,701 344,394
Eating and Drinking 644,880 595,870
Home Furnishing and
Appliances 184,154 177,349
Building Materials &
Farm Implements 395,751 417,050
Auto Dealers Supplies 905,851 870,813
Service Stations 732,368 874,827
Other Retail Stores 635,203 633,747
Retail Stores Total $4,908,048 $5,026,637
All Other Outlets 1,404,241 1,580,728
Total All Outlets $6,608,575 $6,866,690
Source: California State Board of Equalization, Research and Statistics Division.
(I) 2008 annual figures unavailable. The taxable transaction figures by industry which are shown above may not be directly
comparable to the "Total, All Outlets" figures due to rounded data.
Building and Real Estate Activity
The following tables set forth five-year summaries of building permit valuations and new
dwelling units authorized in the County (in both incorporated and unincorporated areas) for the
years 2004 through 2008.
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"
C O U N T Y O F R I V E R S I D E
B U I L D I N G P E R M I T V A L U A T I O N S " )
( I n T h o u s a n d s )
R E S I D E N T I A L
N e w S i n g l e - F a m i l y
N e w M u l t i - F a m i l y
A l t e r a t i o n s a n d A d j u s t m e n t s
T o t a l R e s i d e n t i a l
N O N - R E S I D E N T I A L
N e w C o m m e r c i a l
N e w I n d u s t r y
N e w O t h e r ( I )
A l t e r a t i o n s & A d j u s t m e n t s
T o t a l N o n r e s i d e n t i a l
T O T A L A L L B U I L D I N G
2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8
$ 5 , 9 9 7 , 5 1 4 $ 6 , 2 4 3 , 7 9 0 $ 4 , 4 1 2 , 2 5 7 $ 2 , 2 0 7 , 5 2 0
4 0 4 , 6 1 6 4 0 7 , 4 2 9 4 3 1 , 5 7 9 2 3 8 , 3 1 6
1 3 5 , 1 7 8 1 6 4 , 3 1 2 1 5 8 , 0 9 8 1 4 1 , 9 9 6
$ 6 , 5 3 7 , 3 0 8 $ 6 , 8 1 5 , 5 3 1 $ 5 , 0 0 1 , 9 3 4 $ 2 , 5 8 7 , 8 3 2
$ 5 8 0 , 0 5 8 $ 5 5 2 , 6 6 5 $ 6 4 8 , 0 6 8 $ 6 8 2 , 3 3 1
2 0 3 , 3 1 1 1 2 0 , 3 6 6 2 8 8 , 3 5 3 1 8 4 , 5 0 6
3 3 4 , 0 0 2 3 4 4 , 7 0 2 2 9 0 , 0 1 0 2 4 0 , 7 6 5
2 2 2 . 4 9 6 2 7 4 , 3 3 9 3 0 3 , 4 0 7 3 5 0 , 5 3 9
$ 1 , 3 3 9 , 8 6 7 $ 1 , 2 9 2 , 0 7 2 $ 1 , 5 2 9 , 8 3 8 $ 1 , 4 5 8 , 1 4 1
$ 1 , 2 1 4 , 7 5 2
2 4 3 , 7 4 1
1 1 8 , 4 9 0
$ 1 , 5 7 6 , 9 8 3
$ 5 3 9 , 9 4 4
7 0 , 4 1 1
1 3 8 , 7 6 6
2 9 2 , 6 9 4
$ 1 , 0 4 1 , 8 1 5
$ 7 , 8 7 7 , 1 7 5 $ 8 , 1 0 7 , 6 0 1 5 6 , 5 3 1 , 7 7 2 4 4 7 $ 2 , 6 1 8 , 7 9 8
S o u r c e : C o n s t r u c t i o n I n d u s t r y R e s e a r c h B o a r d .
( I ) I n c l u d e s c h u r c h e s a n d r e l i g i o u s b u i l d i n g s , h o s p i t a l s a n d i n s t i t u t i o n a l b u i l d i n g s , s c h o o l s a n d e d u c a t i o n a l b u i l d i n g s , r e s i d e n t i a l
g a r a g e s , p u b l i c w o r k s a n d u t i l i t i e s b u i l d i n g s a n d n o n - r e s i d e n t i a l a l t e r a t i o n s a n d a d d i t i o n s .
S i n g l e F a m i l y
M u l t i - F a m i l y
T O T A L
C O U N T Y O F R I V E R S I D E
N U M B E R O F N E W D W E L L I N G U N I T S
2 0 0 4 2 0 0 5 2 0 0 6
2 9 , 4 7 8 2 9 , 9 9 4 2 0 , 6 9 2
4 , 7 4 8 _ 4 , 1 4 0 4 , 5 1 9
2 0 0 7 2 0 0 8
9 , 7 6 3 3 , 8 1 5
2 , 6 9 0 2 , 1 0 4
3 4 , 2 2 6 3 4 , 1 3 4 2 5 , 2 1 1 1 2 , 4 4 3 5 , 9 1 9
S o u r c e : C o n s t r u c t i o n I n d u s t r y R e s e a r c h B o a r d .
T h e e c o n o m y o f t h e C o u n t y i s c u r r e n t l y e x p e r i e n c i n g a s l o w d o w n a s e v i d e n c e d b y a n
i n c r e a s e d u n e m p l o y m e n t r a t e , a s l o w d o w n i n t o t a l p e r s o n a l i n c o m e a n d t a x a b l e s a l e s , a d r o p i n
r e s i d e n t i a l b u i l d i n g p e r m i t s , a d e c l i n e i n t h e r a t e o f h o m e s a l e s a n d t h e m e d i a n p r i c e o f s i n g l e -
f a m i l y h o m e s a n d c o n d o m i n i u m s a n d a n i n c r e a s e i n n o t i c e s o f d e f a u l t o n m o r t g a g e l o a n s s e c u r e d
b y h o m e s a n d c o n d o m i n i u m s .
7 5 7 8 3 9 7 9 . 5
B - 9
7 1
The following table sets forth a comparison of median housing prices for Los Angeles
County, Riverside County and Southern California as of February 2008 and February 2009.
COUNTY OF RIVERSIDE
COMPARISON OF MEDIAN HOUSING PRICES
February February Percent
2008 2009 Change
County of Riverside $325,000 $190,000 (41.5)%
Los Angeles County 460,000 299,000 (35.0)
Southern California(I) 408,000 250,000 (38.7)
Source: MDA DataQuick Information Systems.
(I) Southern California comprises Los Angeles, Orange, San Diego, Riverside, San Bernardino and Ventura Counties.
The following table sets forth a comparison of home and condominium foreclosures
recorded in Los Angeles County, Riverside County, San Bernardino County and Southern
California for the years and quarters indicated.
COUNTY OF RIVERSIDE
COMPARISON OF HOME FORECLOSURES
San Southern
Year/Qtr Los Angeles Riverside Bernardino California
2004 901 348 697 2,221
2005 585 304 402 1,702
2006 1,997 1,778 1,011 7,355
2007 12,466 12,497 7,746 46,086
2008 35,366 32,423 23,557 125,056
2009Q1 6,914 6,389 4,814 23,995
2009Q2 6,922 5,848 4,818 23,775
Source: MDA DataQuick Information Systems.
oI Southern California comprises Los Angeles, Orange, San Diego, Riverside, San Bernardino and Ventura Counties.
Agriculture
Agriculture remains an important source of income in the County. Principal agricultural
products are: nursery, milk, table grapes, eggs, avocados, grapefruit, alfalfa, bell peppers, dates,
and lemons. Four areas in the County account for the major portion of agricultural activity: the
Riverside/Corona and San Jacinto/Temecula Valley Districts in the western portion of the
County, the Coachella Valley in the central portion and the Palo Verde Valley near the County's
eastern border. The value of agricultural production in the County for the years 2004 through
2008 is set forth in the following table.
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COUNTY OF RIVERSIDE
VALUE OF AGRICULTURAL PRODUCTION
2004 2005
Citrus Fruits $ 123,574,100 $ 138,244,700
Trees and Vines 211,936,500 188,553,200
Vegetables, Melons, Misc. 174,866,300 261,019,500
Field and Seed Crops 75,219,000 77,687,300
Nursery 211,271,200 229,210,200
Apiculture 2,951,300 2,736,800
Aquaculture Products 15,579,100 13,367,300
Total Crop Valuation $ 815,397,500 $ 910,819,000
Livestock and Poultry
Valuation 316,207,700 257 852,100
Grand Total $1,131,605,200 $1,168,671,100
Source: Riverside County Agricultural Commissioner.
Transportation
2006
$ 107,897,000
191,321,200
213,643,300
68,611,700
270,992,800
3,554,300
13,367,300
$ 869,387,600
234,903,400
$1,104,291,000
2007
$ 121,387,100
189,286,500
234,854,700
94,492,000
272,326,200
3,948,900
9 829,200
$ 926,124,600
338,938,600
$1,265,063,200
2008
$ 135,759,000
173,678,000
266,414,900
123,545,400
230,416,200
5,637,000
12,077,700
$ 947,529,000
321,060,000
$1,268,589,900
Several major freeways and highways provide access between the County and all parts of
Southern California. The Riverside Freeway (State Route 91) extends southwest through Corona
and connects with the Orange County freeway network in Fullerton. Interstate 10 traverses the
width of the County, the western -most portion of which links up with major cities and freeways
in the southern part of San Bernardino County with the eastern part linking to the County's
Desert cities and Arizona. Interstate 15 and 215 extend north and then east to Las Vegas, and
south to San Diego. State Route 60 provides an alternate (to Interstate 10) east -west link to Los
Angeles County.
Currently, Metrolink provides commuter rail service to Los Angeles, San Bernardino and
Orange Counties from several stations in the County. Transcontinental passenger rail service is
provided by Amtrak with stops in Riverside and Indio. Freight service to major west coast and
national markets is provided by three transcontinental railroads Union Pacific Railroad,
Burlington Northern and Santa Fe Railway Company. Truck service is provided by several
common carriers, making available overnight delivery service to major California cities.
Transcontinental bus service is provided by Greyhound Lines. Intercounty, intercity and
local bus service is provided by the Riverside Transit Agency to western County cities and
communities. There arc also four municipal transit operators in the western County providing
services within the cities of Banning, Beaumont, Corona and Riverside. The SunLine Transit
Agency provides local bus service throughout the Coachella Valley, including the cities of Palm
Springs and Indio. The Palo Verde Valley Transit Authority provided service in the far eastern
portion of the County (City of Blythe and surrounding communities).
The County seat, located in the City of Riverside, is within 20 miles of the Ontario
International Airport in neighboring San Bernardino County. This airport is operated by the Los
Angeles Department of Airports. Four major airlines schedule commercial flight service at Palm
75783979.5
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Springs Regional Airport. County -operated general aviation airports include those in Thermal,
Hemet, Blythe and French Valley. The cities of Riverside, Corona and Banning also operate
general aviation airports. There is a military base at March Air Reserve Base, which converted
from an active duty base to a reserve -only base on April 1, 1996. Plans for joint military and
civilian use of the base thereafter are presently being formulated by the March AFB Joint Powers
Authority, comprised of the County and the Cities of Riverside, Moreno Valley and Perris.
Education
There are four elementary school districts, one high school district, eighteen unified (K-
12) school districts and four community college districts in the County. Ninety-five percent of
all K-12 students attend schools in the unified school districts. The three largest unified school
districts are Riverside Unified School District, Moreno Valley Unified School District and
Corona -Norco Unified School District.
There are seven two-year community college campuses located in the communities of
Riverside, Moreno Valley, Norco, San Jacinto, Menifee, Coachella Valley and Palo Verde
Valley. There are also three universities located in the City of Riverside: the University of
California at Riverside, La Sierra University and California Baptist University.
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"
"
7 5 7 8 3 9 7 9 . 5
A P P E N D I X C
S U M M A R Y O F C E R T A I N P R O V I S I O N S O F T H E I N D E N T U R E
C - 1
7 5
APPENDIX D
BOOK ENTRY SYSTEM
The information in this Appendix D concerning The Depository Trust Company
("DTC'), New York, New York, and DTC's Book -Entry System has been obtained from DTC and
the Commission, the Trustee and the Underwriters take no responsibility for the completeness or
accuracy thereof.
The Commission, the Trustee and the Underwriters cannot and do not give any
assurances that DTC, DTC Participants or Indirect Participants or others will distribute any (a)
payments of principal or purchase price or interest with respect to the $ principal
amount of Riverside County Transportation Commission Sales Tax Revenue Bonds (Limited
Tax Bonds), 2009 Series B (the "2009 Series B Bonds") and the $ principal amount
of Riverside County Transportation Commission Sales Tax Revenue Bonds (Limited Tax
Bonds), 2009 Series C (the "2009 Series C Bonds" and, together with the Series A Bonds and the
Series B Bonds, the "2009 Bonds"), (b) certificates representing ownership interest in or other
confirmation or ownership interest in the 2009 Bonds, or (c) redemption, tender or other notices
sent to DTC or Cede & Co., its nominee, as the registered owner of the 2009 Bonds, or that they
will do so on a timely basis, or that DTC, DTC Participants or DTC Indirect Participants will act
in the manner described in this Appendix D. The current "Rules" applicable to DTC are on file
with the Securities and Exchange Commission and the current "Procedures"'of DTC to be
followed in dealing with DTC Participants are on file with DTC. The Commission, the Trustee
and the Underwriters are not responsible or liable for the failure of DTC or any DTC Participant
to make any payment or give any notice to a beneficial owner with respect to the 2009 Bonds or
an error or delay relating thereto.
DTC will act as securities depository for the 2009 Bonds. The 2009 Bonds will be issued
as fully -registered securities registered in the name of Cede & Co. (DTC's partnership nominee)
or such other name as may be requested by an authorized representative of DTC. One fully -
registered certificate will be issued for each maturity of the 2009 Bonds, in the aggregate
principal amount of such maturity, and will be deposited with DTC.
DTC is a limited -purpose trust company organized under the New York Banking Law, a
"banking organization" within the meaning of the New York Banking Law, a member of the
Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform
Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A
of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5
million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and
money market instruments (from over 100 countries) that DTC's participants ("Direct
Participants") deposit with DTC. DTC also facilitates the post -trade settlement among Direct
Participants of sales and other securities transactions in deposited securities, through electronic
computerized book -entry transfers and pledges between Direct Participants' accounts. This
eliminates the need for physical movement of securities certificates. Direct Participants include
both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing
corporations, and certain other organizations. DTC is a wholly -owned subsidiary of The
Depository Trust & Clearing Corporation ("DTCC"). DTCC is the holding company for DTC,
75783979.5
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National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which
are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries.
Access to the DTC system is also available to others such as both U.S. and non-U.S. securities
brokers and dealers, banks, trust companies, and clearing corporations that clear through or
maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect
Participants"). DTC has Standard & Poor's highest rating: AAA. The DTC Rules applicable to
its Participants are on file with the Securities and Exchange Commission. More information
about DTC can be found at www.dtcc.com and www.dtc.org. The information set forth on such
websites is not incorporated by reference.
Purchases of 2009 Bonds under the DTC system must be made by or through Direct
Participants, which will receive a credit for the 2009 Bonds on DTC's records. The ownership
interest of each actual purchaser of each 2009 Bond (`Beneficial Owner") is in turn to be
recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive
written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to
receive written confirmations providing details of the transaction, as well as periodic statements
of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner
entered into the transaction. Transfers of ownership interests in the 2009 Bonds are to be
accomplished by entries made on the books of Direct and Indirect Participants acting on behalf
of Beneficial Owners. Beneficial Owners will not receive certificates representing their
ownership interests in the 2009 Bonds, except in the event that use of the book -entry system for
the 2009 Bonds is discontinued.
To facilitate subsequent transfers, all 2009 Bonds deposited by Direct Participants with
DTC are registered in the name of DTC's partnership nominee, Cede & Co., or such other name
as may be requested by an authorized representative of DTC. The deposit of the 2009 Bonds
with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not
effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial
Owners of the 2009 Bonds; DTC's records reflect only the identity of the Direct Participants to
whose accounts such 2009 Bonds are credited, which may or may not be the Beneficial Owners.
The Direct and Indirect Participants will remain responsible for keeping account of their
holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by
Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to
Beneficial Owners will be governed by arrangements among them, subject to any statutory or
regulatory requirements as may be in effect from time to time. Beneficial Owners of the 2009
Bonds may wish to take certain steps to augment the transmission to them of notices of
significant events with respect to the 2009 Bonds, such as redemptions, tenders, defaults, and
proposed amendments to the 2009 Bond documents. For example, Beneficial Owners of the
2009 Bonds may wish to ascertain that the nominee holding the 2009 Bonds for their benefit has
agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners
may wish to provide their names and addresses to the registrar and request that copies of notices
be provided directly to them.
75783979.5
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"
"
R e d e m p t i o n a n d t e n d e r n o t i c e s s h a l l b e s e n t t o D T C . I f l e s s t h a n a l l o f t h e 2 0 0 9 B o n d s
a r e b e i n g r e d e e m e d , D T C ' s p r a c t i c e i s t o d e t e r m i n e b y l o t t h e a m o u n t o f t h e i n t e r e s t o f e a c h
D i r e c t P a r t i c i p a n t i n s u c h i s s u e t o b e r e d e e m e d .
N e i t h e r D T C n o r C e d e & C o . ( n o r a n y o t h e r D T C n o m i n e e ) w i l l c o n s e n t o r v o t e w i t h
r e s p e c t t o t h e 2 0 0 9 B o n d s u n l e s s a u t h o r i z e d b y a D i r e c t P a r t i c i p a n t i n a c c o r d a n c e w i t h D T C ' s
M M I P r o c e d u r e s . U n d e r i t s u s u a l p r o c e d u r e s , D T C m a i l s a n O m n i b u s P r o x y t o t h e C o m m i s s i o n
a s s o o n a s p o s s i b l e a f t e r t h e r e c o r d d a t e . T h e O m n i b u s P r o x y a s s i g n s C e d e & C o . ' s c o n s e n t i n g o r
v o t i n g r i g h t s t o t h o s e D i r e c t P a r t i c i p a n t s t o w h o s e a c c o u n t s t h e 2 0 0 9 B o n d s a r e c r e d i t e d o n t h e
r e c o r d d a t e ( i d e n t i f i e d i n a l i s t i n g a t t a c h e d t o t h e O m n i b u s P r o x y ) .
P a y m e n t s o f p r i n c i p a l o r p u r c h a s e p r i c e o f a n d i n t e r e s t o n t h e 2 0 0 9 B o n d s w i l l b e m a d e
t o C e d e & C o . , o r s u c h o t h e r n o m i n e e a s m a y b e r e q u e s t e d b y a n a u t h o r i z e d r e p r e s e n t a t i v e o f
D T C . D T C ' s p r a c t i c e i s t o c r e d i t D i r e c t P a r t i c i p a n t s ' a c c o u n t s u p o n D T C ' s r e c e i p t o f f u n d s a n d
c o r r e s p o n d i n g d e t a i l i n f o r m a t i o n f r o m t h e C o m m i s s i o n o r t h e T r u s t e e , o n p a y a b l e d a t e i n
a c c o r d a n c e w i t h t h e i r r e s p e c t i v e h o l d i n g s s h o w n o n D T C ' s r e c o r d s . P a y m e n t s b y P a r t i c i p a n t s t o
B e n e f i c i a l O w n e r s w i l l b e g o v e r n e d b y s t a n d i n g i n s t r u c t i o n s a n d c u s t o m a r y p r a c t i c e s , a s i s t h e
c a s e w i t h s e c u r i t i e s h e l d f o r t h e a c c o u n t s o f c u s t o m e r s i n b e a r e r f o r m o r r e g i s t e r e d i n " s t r e e t
n a m e , " a n d w i l l b e t h e r e s p o n s i b i l i t y o f s u c h P a r t i c i p a n t a n d n o t o f D T C , t h e T r u s t e e , o r t h e
C o m m i s s i o n , s u b j e c t t o a n y s t a t u t o r y o r r e g u l a t o r y r e q u i r e m e n t s a s m a y b e i n e f f e c t f r o m t i m e t o
t i m e . P a y m e n t o f p r i n c i p a l o f , p r e m i u m , i f a n y , a n d i n t e r e s t e v i d e n c e d b y t h e 2 0 0 9 B o n d s t o
C e d e & C o . ( o r s u c h o t h e r n o m i n e e a s m a y b e r e q u e s t e d b y a n a u t h o r i z e d r e p r e s e n t a t i v e o f
D T C ) i s t h e r e s p o n s i b i l i t y o f t h e C o m m i s s i o n o r t h e T r u s t e e , d i s b u r s e m e n t o f s u c h p a y m e n t s t o
D i r e c t P a r t i c i p a n t s w i l l b e t h e r e s p o n s i b i l i t y o f D T C , a n d d i s b u r s e m e n t o f s u c h p a y m e n t s t o t h e
B e n e f i c i a l O w n e r s w i l l b e t h e r e s p o n s i b i l i t y o f D i r e c t a n d I n d i r e c t P a r t i c i p a n t s .
D T C m a y d i s c o n t i n u e p r o v i d i n g i t s s e r v i c e s a s d e p o s i t o r y w i t h r e s p e c t t o t h e 2 0 0 9 B o n d s
a t a n y t i m e b y g i v i n g r e a s o n a b l e n o t i c e t o t h e C o m m i s s i o n o r t h e T r u s t e e . U n d e r s u c h
c i r c u m s t a n c e s , i n t h e e v e n t t h a t a s u c c e s s o r d e p o s i t o r y i s n o t o b t a i n e d , s e c u r i t y c e r t i f i c a t e s a r e
r e q u i r e d t o b e p r i n t e d a n d d e l i v e r e d .
T h e C o m m i s s i o n m a y d e c i d e t o d i s c o n t i n u e u s e o f t h e s y s t e m o f b o o k - e n t r y - o n l y
t r a n s f e r s t h r o u g h D T C ( o r a s u c c e s s o r s e c u r i t i e s d e p o s i t o r y ) . I n t h a t e v e n t , s e c u r i t y c e r t i f i c a t e s
w i l l b e p r i n t e d a n d d e l i v e r e d t o D T C .
7 5 7 8 3 9 7 9 . 5
D - 3
7 8
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7 5 7 8 3 9 7 9 . 5
A P P E N D I X E
P R O P O S E D F O R M O F B O N D C O U N S E L O P I N I O N
E - 1
7 9
75783979.5
APPENDIX F
PROPOSED FORM OF CONTINUING DISCLOSURE AGREEMENT
F-1
80
ATTACHMENT 3
OH&S Draft
8/4/09
SECOND SUPPLEMENTAL INDENTURE
between
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
and
U.S. BANK NATIONAL ASSOCIATION,
as Trustee
Dated as of October 1, 2009
Relating to
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
SALES TAX REVENUE BONDS
(LIMITED TAX BONDS)
2009 SERIES A, 2009 SERIES B AND 2009 SERIES C
(Supplementing the Indenture
Dated as of June 1, 2008)
OHS West260692447.6
81
OH&S Draft
8/4/09
ARTICLE XIX
DEFINITIONS
Section 19.01. Definitions 1
Section 19.02. Rules of Construction 8
ARTICLE XX
FINDINGS, DETERMINATIONS AND DIRECTIONS
Section 20.01. Findings and Determinations 8
Section 20.02. Recital in Bonds 8
Section 20.03. Effect of Findings and Recital 8
ARTICLE XXI
AUTHORIZATION OF 2009 BONDS
Section 21.01. Principal Amount, Designation and Series 8
Section 21.02. Purpose and Application of Proceeds 9
Section 21.03. Form, Denomination, Numbers and Letters 9
Section 21.04. Date, Maturities and Interest Rates 9
Section 21.05. Interest Rates on 2009 Bonds 11
ARTICLE XXII
REDEMPTION AND PURCHASE OF 2009 BONDS
Section 22.01. Optional Redemption of 2009 Bonds 22
Section 22.02. Mandatory Redemption of 2009 Bonds From Mandatory Sinking
Account Payments 23
Section 22.03. Purchase In Lieu of Redemption 25
Section 22.04. Holder's Option to Tender 2009 Bonds for Purchase 25
Section 22.05. Mandatory Tender of 2009 Bonds for Purchase 26
Section 22.06. Delivery of Tendered 2009 Bonds 28
Section 22.07. 2009 Bonds Deemed Purchased 28
Section 22.08. Deposit of 2009 Bonds 29
Section 22.09. Remarketing of Tendered 2009 Bonds 29
Section 22.10. Deposits into Accounts in the 2009 Bonds Purchase Fund 32
Section 22.11. Disbursements from the 2009 Bonds Purchase Fund 33
Section 22.12. Delivery of 2009 Bonds 34
Section 22.13. 2009 Liquidity Facilities; Liquidity Facility Bonds 34
Section 22.14. Alternate Liquidity Facilities 36
Section 22.15. Remarketing Agents for the 2009 Bonds 38
ARTICLE XXIII
PURCHASE OF 2009 BONDS AT DIRECTION OF COMMISSION
Section 23.01. Mandatory Tender for Purchase of 2009 Bonds at Direction of
Commission 38
Section 23.02. Delivery of Tendered 2009 Bonds 40
Section 23.03. 2009 Bonds Deemed Purchased 40
Section 23.04. Deposit of 2009 Bonds 41
Section 23.05. Payment of Optional Purchase Price of 2009 Bonds 41
OHS WesL260692447.6
i
82
Section 23.06. 2009 Bonds Owned by Commission 41 •
ARTICLE XXIV
ESTABLISHMENT OF FUNDS AND ACCOUNTS AND APPLICATION THEREOF
Section 24.01. Funds and Accounts 42
Section 24.02. 2009 Costs of Issuance Fund 42
Section 24.03. Funding and Application of the 2009 Bonds Reserve Fund; Bond
Reserve Requirement for the 2009 Bonds 42
Section 24.04. 2009 Bonds Purchase Fund 43
ARTICLE XXV
MISCELLANEOUS
Section 25.01. Severability 43
Section 25.02. Parties Interested Herein 44
Section 25.03. Headings Not Binding 44
Section 25.04. Notice Addresses 44
Section 25.05. Notices to Rating Agencies 44
Section 25.06. Notices to 2009 Liquidity Provider 45
Section 25.07. No Compensation of Trustee From Proceeds of 2009 Liquidity Facility 45
Section 25.08. Indenture to Remain in Effect 45
Section 25.09. Effective Date of Second Supplemental Indenture 45
Section 25.10. Execution in Counterparts 45
EXHIBIT A FORM OF 2009 BOND A-1 .
EXHIBIT B NOTICE ADDRESSES B-1
OHS West:260692447.6 11
83
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S E C O N D S U P P L E M E N T A L I N D E N T U R E
T H I S S E C O N D S U P P L E M E N T A L I N D E N T U R E , d a t e d a s o f O c t o b e r 1 , 2 0 0 9 ( t h i s
" S e c o n d S u p p l e m e n t a l I n d e n t u r e " ) , b e t w e e n t h e R I V E R S I D E C O U N T Y T R A N S P O R T A T I O N
C O M M I S S I O N , a p u b l i c e n t i t y d u l y e s t a b l i s h e d a n d e x i s t i n g u n d e r t h e l a w s o f t h e S t a t e o f
C a l i f o r n i a ( t h e " C o m m i s s i o n " ) a n d U . S . B A N K N A T I O N A L A S S O C I A T I O N , a n a t i o n a l
b a n k i n g a s s o c i a t i o n d u l y o r g a n i z e d a n d e x i s t i n g u n d e r a n d b y v i r t u e o f t h e l a w s o f t h e U n i t e d
S t a t e s o f A m e r i c a , a s t r u s t e e ( t h e " T r u s t e e " ) :
W I T N E S S E T H :
W H E R E A S , t h i s S e c o n d S u p p l e m e n t a l I n d e n t u r e i s s u p p l e m e n t a l t o t h e I n d e n t u r e , d a t e d
a s o f J u n e 1 , 2 0 0 8 ( a s s u p p l e m e n t e d a n d a m e n d e d f r o m t i m e t o t i m e p u r s u a n t t o i t s t e r m s , t h e
" I n d e n t u r e " ) , b e t w e e n t h e C o m m i s s i o n a n d t h e T r u s t e e ;
W H E R E A S , t h e I n d e n t u r e p r o v i d e s t h a t t h e C o m m i s s i o n m a y i s s u e B o n d s f r o m t i m e t o
t i m e a s a u t h o r i z e d b y a S u p p l e m e n t a l I n d e n t u r e , w h i c h B o n d s a r e t o b e p a y a b l e f r o m R e v e n u e s
a n d f r o m s u c h o t h e r s o u r c e s a s m a y b e s p e c i f i e d w i t h r e s p e c t t o a p a r t i c u l a r S e r i e s o f B o n d s i n
t h e S u p p l e m e n t a l I n d e n t u r e a u t h o r i z i n g s u c h S e r i e s ; a n d
W H E R E A S , t h e C o m m i s s i o n d e s i r e s t o p r o v i d e a t t h i s t i m e f o r t h e i s s u a n c e o f ( i ) a
S e r i e s o f B o n d s t o b e d e s i g n a t e d " R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n S a l e s T a x
R e v e n u e B o n d s ( L i m i t e d T a x B o n d s ) , 2 0 0 9 S e r i e s A " ( t h e " 2 0 0 9 S e r i e s A B o n d s " ) ; ( i i ) a S e r i e s
o f B o n d s t o b e d e s i g n a t e d " R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n S a l e s T a x R e v e n u e
B o n d s ( L i m i t e d T a x B o n d s ) , 2 0 0 9 S e r i e s B " ( t h e " 2 0 0 9 S e r i e s B B o n d s " ) ; a n d ( i i i ) a S e r i e s o f
B o n d s t o b e d e s i g n a t e d " R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n S a l e s T a x R e v e n u e
B o n d s ( L i m i t e d T a x B o n d s ) , 2 0 0 9 S e r i e s C " ( " t h e 2 0 0 9 S e r i e s C B o n d s " a n d , t o g e t h e r w i t h t h e
2 0 0 9 S e r i e s A B o n d s a n d t h e 2 0 0 9 S e r i e s B B o n d s , t h e " 2 0 0 9 B o n d s " ) a l l f o r t h e p u r p o s e o f
r e t i r i n g $ p r i n c i p a l a m o u n t o f t h e C o m m i s s i o n ' s O u t s t a n d i n g N o t e s , r e f u n d i n g
S 1 2 6 , 3 9 5 , 0 0 0 p r i n c i p a l a m o u n t o f t h e C o m m i s s i o n ' s O u t s t a n d i n g 2 0 0 8 B o n d s , t o f u n d a r e s e r v e
f u n d a n d t o p a y c o s t s o f i s s u a n c e , a l l a s p r o v i d e d i n t h i s S e c o n d S u p p l e m e n t a l I n d e n t u r e ;
N O W , T H E R E F O R E , t h e p a r t i e s h e r e t o h e r e b y a g r e e a s f o l l o w s :
A R T I C L E X I X
D E F I N I T I O N S
S e c t i o n 1 9 . 0 1 . D e f i n i t i o n s .
( a ) D e f i n i t i o n s . U n l e s s t h e c o n t e x t o t h e r w i s e r e q u i r e s , o r a s o t h e r w i s e p r o v i d e d
i n s u b s e c t i o n ( b ) o f t h i s S e c t i o n o r i n A p p e n d i x A t o t h i s S e c o n d S u p p l e m e n t a l I n d e n t u r e , a l l
t e r m s w h i c h a r e d e f i n e d i n S e c t i o n 1 . 0 2 o f t h e I n d e n t u r e s h a l l h a v e t h e s a m e m e a n i n g s i n t h i s
S e c o n d S u p p l e m e n t a l I n d e n t u r e .
( b ) A d d i t i o n a l D e f i n i t i o n s . U n l e s s t h e c o n t e x t o t h e r w i s e r e q u i r e s , t h e f o l l o w i n g
t e r m s s h a l l , f o r a l l p u r p o s e s o f t h i s S e c o n d S u p p l e m e n t a l I n d e n t u r e , h a v e t h e f o l l o w i n g
m e a n i n g s :
O H S W e s t : 2 6 0 6 9 2 4 4 7 . 6
8 4
"
" D a i l y R a t e P e r i o d " m e a n s a n y p e r i o d d u r i n g w h i c h a S e r i e s o f 2 0 0 9 B o n d s b e a r s
i n t e r e s t a t t h e D a i l y R a t e .
" E x p i r a t i o n " ( a n d o t h e r f o r m s o f " e x p i r e " ) m e a n s , w h e n u s e d w i t h r e s p e c t t o a 2 0 0 9
C r e d i t E n h a n c e m e n t o r 2 0 0 9 L i q u i d i t y F a c i l i t y , t h e e x p i r a t i o n o f s u c h 2 0 0 9 C r e d i t E n h a n c e m e n t
o r 2 0 0 9 L i q u i d i t y F a c i l i t y i n a c c o r d a n c e w i t h i t s t e r m s .
" F a v o r a b l e O p i n i o n o f B o n d C o u n s e l " m e a n s , w i t h r e s p e c t t o a n y a c t i o n r e q u i r i n g s u c h
a n o p i n i o n , a n O p i n i o n o f B o n d C o u n s e l t o t h e e f f e c t t h a t s u c h a c t i o n w i l l n o t , i n a n d o f i t s e l f ,
a d v e r s e l y a f f e c t t h e T a x - E x e m p t s t a t u s o f i n t e r e s t o n t h e B o n d s o r s u c h p o r t i o n t h e r e o f a s s h a l l
b e a f f e c t e d t h e r e b y .
" F i x e d R a t e " m e a n s t h e f i x e d r a t e h o m e b y a n y S e r i e s o f 2 0 0 9 B o n d s f r o m t h e F i x e d
R a t e C o n v e r s i o n D a t e f o r s u c h S e r i e s o f B o n d s , w h i c h r a t e s h a l l b e e s t a b l i s h e d i n a c c o r d a n c e
w i t h S e c t i o n 2 1 . 0 5 ( a ) ( v ) .
" F i x e d R a t e C o m p u t a t i o n D a t e " m e a n s a n y B u s i n e s s D a y d u r i n g t h e p e r i o d f r o m a n d
i n c l u d i n g t h e d a t e o f r e c e i p t o f a C o n v e r s i o n N o t i c e r e l a t i n g t o a C o n v e r s i o n t o a F i x e d R a t e t o
a n d i n c l u d i n g t h e B u s i n e s s D a y n e x t p r e c e d i n g t h e p r o p o s e d F i x e d R a t e C o n v e r s i o n D a t e .
" F i x e d R a t e C o n v e r s i o n D a t e " m e a n s t h e C o n v e r s i o n D a t e o n w h i c h t h e i n t e r e s t r a t e o n
a n y S e r i e s o f 2 0 0 9 B o n d s s h a l l b e c o n v e r t e d t o a F i x e d R a t e .
" F i x e d R a t e P e r i o d " m e a n s t h e p e r i o d f r o m a n d i n c l u d i n g t h e F i x e d R a t e C o n v e r s i o n
D a t e o f a n y S e r i e s o f 2 0 0 9 B o n d s c o n v e r t e d t o a F i x e d R a t e t o a n d i n c l u d i n g t h e i r m a t u r i t y d a t e
o r e a r l i e r d a t e o f r e d e m p t i o n .
" I n t e r e s t P a y m e n t D a t e " m e a n s ( a ) w i t h r e s p e c t t o t h e 2 0 0 9 B o n d s : ( i ) i n t h e D a i l y
R a t e P e r i o d o r t h e W e e k l y R a t e P e r i o d , t h e f i r s t B u s i n e s s D a y o f e a c h c a l e n d a r m o n t h
c o m m e n c i n g , 2 0 0 9 ; ( i i ) i n t h e C o m m e r c i a l P a p e r R a t e P e r i o d , t h e d a y i m m e d i a t e l y
s u c c e e d i n g t h e l a s t d a y o f e a c h C o m m e r c i a l P a p e r R a t e P e r i o d f o r s u c h 2 0 0 9 B o n d ; ( i i i ) e a c h
C o n v e r s i o n D a t e ; a n d ( i v ) i n t h e L o n g - T e r m R a t e P e r i o d o r t h e F i x e d R a t e P e r i o d , e a c h S e m i -
A n n u a l I n t e r e s t P a y m e n t D a t e ; a n d ( b ) i n a l l e v e n t s , t h e f i n a l m a t u r i t y d a t e , r e d e m p t i o n d a t e o r
O p t i o n a l P u r c h a s e D a t e o f e a c h 2 0 0 9 B o n d .
" I n t e r e s t R a t e D e t e r m i n a t i o n M e t h o d " m e a n s a n y o f t h e m e t h o d s o f d e t e r m i n i n g t h e
i n t e r e s t r a t e o n t h e 2 0 0 9 B o n d s f r o m t i m e t o t i m e a s d e s c r i b e d i n S e c t i o n 2 1 . 0 5 ( a ) .
" I s s u e D a t e " m e a n s , w i t h r e s p e c t t o t h e 2 0 0 9 B o n d s , t h e d a t e o n w h i c h t h e 2 0 0 9 B o n d s
a r e f i r s t d e l i v e r e d t o t h e p u r c h a s e r s t h e r e o f .
" L o n d o n B a n k i n g D a y " m e a n s a n y d a y o n w h i c h c o m m e r c i a l b a n k s a r e o p e n f o r
g e n e r a l b u s i n e s s ( i n c l u d i n g d e a l i n g s i n f o r e i g n e x c h a n g e a n d f o r e i g n c u r r e n c y ) i n t h e C i t y o f
L o n d o n , U n i t e d K i n g d o m .
" L o n g - T e r m R a t e " m e a n s t h e i n t e r e s t r a t e e s t a b l i s h e d w i t h r e s p e c t t o a S e r i e s o f 2 0 0 9
B o n d s i n a c c o r d a n c e w i t h S e c t i o n 2 1 . 0 5 ( a ) ( i v ) .
O H S W e s c 2 6 0 6 9 2 4 4 7 . 6 3
8 6
"Long -Term Rate Computation Date" means any Business Day during the period from
and including the date of receipt of a Conversion Notice relating to a Conversion to a Long -Term
Rate to and including the Business Day next preceding the proposed Long -Term Rate
Conversion Date.
"Long -Term Rate Continuation Notice" shall have the meaning given such term in
Section 21.05(a)(iv)(B).
"Long -Term Rate Conversion Date" means: (i) the Conversion Date on which the
interest rate on a Series of 2009 Bonds shall be converted to a Long -Term Rate; and (ii) the date
on which a new Long -Term Rate Period and Long -Term Rate are to be established.
"Long -Term Rate Period" means any period during which a Series of 2009 Bonds bears
interest at the Long -Term Rate.
"Mandatory Tender Bonds" has the meaning specified in Section 22.09(c).
"Optional Purchase Date" means each date on which the 2009 Bonds would be subject
to optional redemption and therefore are subject to purchase at the option of the Commission
pursuant to Article XXIII.
"Optional Purchase Price" means, with respect to the 2009 Bonds to be purchased
pursuant to Article XXIII on any Optional Purchase Date, the principal amount thereof, plus
accrued interest to such Optional Purchase Date, plus an amount equal to the premium, if any,
that would be payable upon the redemption, at the option of the Commission exercised on such
Optional Purchase Date, of such 2009 Bonds.
"Participant" means, with respect to a Securities Depository, each participant listed in
such Securities Depository's book -entry system as having an interest in the 2009 Bonds.
"Purchase Date" means any date on which any 2009 Bond is purchased pursuant to
Section 22.04 or Section 22.05.
"Purchase Price" means, with respect to any 2009 Bond tendered or deemed tendered to
the Trustee for purchase pursuant to Section 22.04 or Section 22.05, an amount equal to 100% of
the principal amount thereof. In addition, if the Purchase Date is not an Interest Payment Date,
the Purchase Price for each 2009 Bond tendered or deemed tendered shall be increased to include
accrued interest thereon to but not including the Purchase Date; provided, however, if such
Purchase Date occurs before an Interest Payment Date, but after the Record Date applicable to
such Interest Payment Date, then the Purchase Price shall not include accrued interest, which
shall be paid to the Holder as of the applicable Record Date.
"Rate" means, with respect to any 2009 Bond, the interest rate applicable to such 2009
Bond as provided in this Second Supplemental Indenture.
"Rate Index" means the Daily Rate Index, the Weekly Rate Index, or both, as the context
may require.
OHS West:260692447.6 4
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"
" R a t e P e r i o d " m e a n s a n y D a i l y R a t e P e r i o d , W e e k l y R a t e P e r i o d , C o m m e r c i a l P a p e r
R a t e P e r i o d , L o n g - T e r m R a t e P e r i o d o r F i x e d R a t e P e r i o d .
" R a t i n g C o n f i r m a t i o n " m e a n s w r i t t e n e v i d e n c e f r o m e a c h r a t i n g a g e n c y t h e n r a t i n g a n y
S e r i e s o f B o n d s t o t h e e f f e c t t h a t , f o l l o w i n g t h e e v e n t w h i c h r e q u i r e s t h e R a t i n g C o n f i r m a t i o n ,
t h e t h e n c u r r e n t r a t i n g f o r s u c h S e r i e s o f B o n d s w i l l n o t b e l o w e r e d o r w i t h d r a w n s o l e l y a s a
r e s u l t o f t h e o c c u r r e n c e o f s u c h e v e n t .
" R e c o r d D a t e " m e a n s ( a ) f o r a n y I n t e r e s t P a y m e n t D a t e i n r e s p e c t o f a n y D a i l y R a t e
P e r i o d , W e e k l y R a t e P e r i o d o r C o m m e r c i a l P a p e r R a t e P e r i o d , t h e B u s i n e s s D a y n e x t p r e c e d i n g
s u c h I n t e r e s t P a y m e n t D a t e ; ( b ) f o r a n y I n t e r e s t P a y m e n t D a t e i n r e s p e c t o f a n y L o n g - T e r m R a t e
P e r i o d o r F i x e d R a t e P e r i o d , t h e f i f t e e n t h ( 1 5 t h ) d a y ( w h e t h e r o r n o t a B u s i n e s s D a y ) o f t h e
m o n t h p r e c e d i n g t h e m o n t h i n w h i c h s u c h I n t e r e s t P a y m e n t D a t e o c c u r s .
" R e d e m p t i o n D a t e " m e a n s t h e d a t e f i x e d f o r r e d e m p t i o n o f B o n d s o f a S e r i e s s u b j e c t t o
r e d e m p t i o n i n a n y n o t i c e o f r e d e m p t i o n g i v e n i n a c c o r d a n c e w i t h t h e t e r m s o f t h e I n d e n t u r e .
" R e d e m p t i o n P r i c e " m e a n s , w i t h r e s p e c t t o a n y 2 0 0 9 B o n d o r a p o r t i o n t h e r e o f , 1 0 0 %
o f t h e p r i n c i p a l a m o u n t t h e r e o f t o b e r e d e e m e d , p l u s t h e a p p l i c a b l e p r e m i u m , i f a n y , p a y a b l e
u p o n r e d e m p t i o n t h e r e o f p u r s u a n t t o s u c h B o n d o r t h i s S e c o n d S u p p l e m e n t a l I n d e n t u r e .
" R e m a r k e t i n g A g e n t " m e a n s t h e o n e o r m o r e b a n k s , t r u s t c o m p a n i e s o r m e m b e r s o f t h e
N a t i o n a l A s s o c i a t i o n o f S e c u r i t i e s D e a l e r s , I n c . m e e t i n g t h e q u a l i f i c a t i o n s s e t f o r t h i n
S e c t i o n 2 2 . 1 5 a n d a p p o i n t e d b y a n A u t h o r i z e d R e p r e s e n t a t i v e t o s e r v e a s a R e m a r k e t i n g A g e n t
f o r a n y 2 0 0 9 B o n d s .
" R e m a r k e t i n g A g r e e m e n t " m e a n s a n y a g r e e m e n t o r a g r e e m e n t s e n t e r e d i n t o b y a n d
b e t w e e n t h e C o m m i s s i o n a n d a R e m a r k e t i n g A g e n t f o r 2 0 0 9 B o n d s .
" S e c o n d S u p p l e m e n t a l I n d e n t u r e " m e a n s t h i s S e c o n d S u p p l e m e n t a l I n d e n t u r e , b e t w e e n
t h e C o m m i s s i o n a n d t h e T r u s t e e , a s a m e n d e d a n d s u p p l e m e n t e d f r o m t i m e t o t i m e .
" S e m i - A n n u a l I n t e r e s t P a y m e n t D a t e " m e a n s J u n e 1 o r D e c e m b e r 1 .
" T a x - E x e m p t " m e a n s , w i t h r e s p e c t t o i n t e r e s t o n a n y o b l i g a t i o n s o f a s t a t e o r l o c a l
g o v e r n m e n t , t h a t s u c h i n t e r e s t i s e x c l u d e d f r o m t h e g r o s s i n c o m e o f t h e h o l d e r s t h e r e o f ( o t h e r
t h a n a n y h o l d e r w h o i s a " s u b s t a n t i a l u s e r " o f f a c i l i t i e s f i n a n c e d w i t h s u c h o b l i g a t i o n s o r a
" r e l a t e d p e r s o n " w i t h i n t h e m e a n i n g o f S e c t i o n 1 4 7 ( a ) o f t h e C o d e ) f o r f e d e r a l i n c o m e t a x
p u r p o s e s , w h e t h e r o r n o t s u c h i n t e r e s t i s i n c l u d a b l e a s a n i t e m o f t a x p r e f e r e n c e o r o t h e r w i s e
i n c l u d a b l e d i r e c t l y o r i n d i r e c t l y f o r p u r p o s e s o f c a l c u l a t i n g o t h e r t a x l i a b i l i t i e s , i n c l u d i n g a n y
a l t e r n a t i v e m i n i m u m t a x o r e n v i r o n m e n t a l t a x u n d e r t h e C o d e .
" T a x - E x e m p t S e c u r i t i e s " m e a n s b o n d s , n o t e s o r o t h e r s e c u r i t i e s t h e i n t e r e s t o n w h i c h i s
T a x - E x e m p t .
" T e r m i n a t i o n " ( a n d o t h e r f o r m s o f " t e r m i n a t e " ) m e a n s , w h e n u s e d w i t h r e s p e c t t o a n y
2 0 0 9 C r e d i t E n h a n c e m e n t o r 2 0 0 9 L i q u i d i t y F a c i l i t y , t h e r e p l a c e m e n t , r e m o v a l , s u r r e n d e r o r
o t h e r t e r m i n a t i o n o f s u c h 2 0 0 9 C r e d i t E n h a n c e m e n t o r 2 0 0 9 L i q u i d i t y F a c i l i t y , o t h e r t h a n a n
O H S W e s 1 2 6 0 6 9 2 4 4 7 . 6 5
8 8
Expiration or an extension or renewal thereof; provided, however, that Termination does not
include immediate suspension or automatic termination events.
"Treasury Rate" means the interest rate applicable to 13-week United States Treasury
bills determined by the Remarketing Agent on the basis of the average per annum discount rate
at which such 13-week Treasury bills shall have been sold at the most recent Treasury auction.
"2009 Bonds" means, collectively, the 2009 Series A Bonds, the 2009 Series B Bonds
and the 2009 Series C Bonds, authorized by Article XXI of this Indenture.
"2009 Bonds Purchase Fund" means the fund by that name established pursuant to
Section 24.01(c).
"2009 Bonds Reserve Fund" means the fund by that name established pursuant to
Section 24.01(b).
"2009 Bonds Reserve Requirement" means, as of any date of calculation, an amount
equal to the least of (i) ten percent (10%) of the original principal amount of the 2009 Bonds (or
if the amount of original issue discount or original issue premium applicable to the 2009 Bonds
exceeds two percent (2%), ten percent (10%) of the issue price of the 2009 Bonds), (ii) one
hundred twenty-five percent (125%) of average Annual Debt Service on the Outstanding 2009
Bonds, and (iii) Maximum Annual Debt Service on the Outstanding 2009 Bonds; provided that
with respect to a Series of variable rate Bonds for which an interest swap is not in place, the
interest rate thereon, for periods where the rate has not yet been determined, for purposes of
calculating the 2009 Bonds Reserve Requirement shall be assumed to be equal to the rate
published in The Bond Buyer as the "Bond Buyer Revenue Bond Index" by the most recent date
preceding the sale of such Series.
"2009 Bonds Tax Certificate" means the Tax Certificate executed on behalf of the
Commission in connection with the issuance of the 2009 Bonds.
"2009 Commission Account" means the account by that name within the 2009 Bonds
Purchase Fund established pursuant to Section 24.01(c).
"2009 Costs of Issuance Fund" means the fund by that name established pursuant to
Section 24.01(a).
"2009 Credit Enhancement" means any Credit Enhancement provided with respect to
the 2009 Bonds.
"2009 Credit Provider" means the Credit Provider issuing a 2009 Credit Enhancement.
"2009 Liquidity Facility" means any Liquidity Facility provided with respect to a Series
of 2009 Bonds pursuant to Section 22.13 or any Alternate Liquidity Facility provided with
respect to a Series of 2009 Bonds pursuant to Section 22.14. The initial 2009 Liquidity Facility
consists of [ ].
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" 2 0 0 9 L i q u i d i t y F a c i l i t y B o n d s " m e a n s L i q u i d i t y F a c i l i t y B o n d s c o n s i s t i n g o f a n y 2 0 0 9
B o n d s p u r c h a s e d w i t h m o n e y s d r a w n u n d e r ( o r o t h e r w i s e o b t a i n e d p u r s u a n t t o t h e t e r m s o f ) a
2 0 0 9 L i q u i d i t y F a c i l i t y a s p r o v i d e d i n S e c t i o n 2 2 . 1 1 ( a ) , b u t e x c l u d i n g a n y 2 0 0 9 B o n d s n o l o n g e r
c o n s i d e r e d t o b e 2 0 0 9 L i q u i d i t y F a c i l i t y B o n d s i n a c c o r d a n c e w i t h t h e t e r m s o f t h e a p p l i c a b l e
2 0 0 9 L i q u i d i t y F a c i l i t y a n d S e c t i o n 2 2 . 1 3 ( e ) .
" 2 0 0 9 L i q u i d i t y F a c i l i t y P u r c h a s e A c c o u n t " m e a n s t h e a c c o u n t b y t h a t n a m e w i t h i n t h e
2 0 0 9 B o n d s P u r c h a s e F u n d e s t a b l i s h e d p u r s u a n t t o S e c t i o n 2 4 . 0 1 ( c ) .
" 2 0 0 9 L i q u i d i t y P r o v i d e r " m e a n s t h e i s s u e r o f t h e 2 0 0 9 L i q u i d i t y F a c i l i t y o r a n y
s u c c e s s o r L i q u i d i t y P r o v i d e r p r o v i d i n g l i q u i d i t y f o r t h e P u r c h a s e P r i c e o f t h e 2 0 0 9 B o n d s
p u r s u a n t t o a 2 0 0 9 L i q u i d i t y F a c i l i t y .
" 2 0 0 9 R e m a r k e t i n g A c c o u n t " m e a n s t h e a c c o u n t b y t h a t n a m e w i t h i n t h e 2 0 0 9 B o n d s
P u r c h a s e F u n d e s t a b l i s h e d p u r s u a n t t o S e c t i o n 2 4 . 0 1 ( c ) .
" 2 0 0 9 S e r i e s A B o n d s " s h a l l m e a n t h e R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n
S a l e s T a x R e v e n u e B o n d s ( L i m i t e d T a x B o n d s ) , 2 0 0 9 S e r i e s A , a u t h o r i z e d b y A r t i c l e X X I o f
t h i s I n d e n t u r e .
" 2 0 0 9 S e r i e s B B o n d s " s h a l l m e a n t h e R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n
S a l e s T a x R e v e n u e B o n d s ( L i m i t e d T a x B o n d s ) , 2 0 0 9 S e r i e s B , a u t h o r i z e d b y A r t i c l e X X I o f
t h i s I n d e n t u r e .
" 2 0 0 9 S e r i e s C B o n d s " s h a l l m e a n t h e R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n
S a l e s T a x R e v e n u e B o n d s ( L i m i t e d T a x B o n d s ) , 2 0 0 9 S e r i e s C , a u t h o r i z e d b y A r t i c l e X X I o f
t h i s I n d e n t u r e .
" V a r i a b l e R a t e " m e a n s a n y o f t h e D a i l y R a t e , t h e W e e k l y R a t e , t h e C o m m e r c i a l P a p e r
R a t e o r t h e L o n g - T e r m R a t e , a s a p p l i c a b l e .
" V a r i a b l e R a t e D e m a n d B o n d s " m e a n s t h e 2 0 0 9 B o n d s b e a r i n g i n t e r e s t a t a D a i l y R a t e
o r a W e e k l y R a t e .
" W e e k l y P u t B o n d s " s h a l l h a v e t h e m e a n i n g s e t f o r t h i n S e c t i o n 2 2 . 0 9 ( b ) .
" W e e k l y R a t e " m e a n s t h e i n t e r e s t r a t e e s t a b l i s h e d w i t h r e s p e c t t o a S e r i e s o f 2 0 0 9 B o n d s
f r o m t i m e t o t i m e i n a c c o r d a n c e w i t h S e c t i o n 2 1 . 0 5 ( a ) ( i i ) .
" W e e k l y R a t e I n d e x " m e a n s , o n a n y B u s i n e s s D a y , t h e S I F M A S w a p I n d e x o r , i f t h e
S I F M A S w a p I n d e x i s n o l o n g e r p u b l i s h e d , a n i n d e x o r r a t e a g r e e d u p o n b y t h e C o m m i s s i o n a n d
t h e R e m a r k e t i n g A g e n t ; p r o v i d e d , h o w e v e r , t h a t i f t h e R e m a r k e t i n g A g e n t A d v i s e s t h e T r u s t e e
a n d t h e C o m m i s s i o n t h a t t h e u s e o f t h e S I F M A S w a p I n d e x w o u l d n o t r e s u l t o r n o l o n g e r r e s u l t s
i n a m a r k e t r a t e o f i n t e r e s t o n t h e B o n d s , " W e e k l y R a t e I n d e x " s h a l l m e a n , s u b j e c t t o a
F a v o r a b l e O p i n i o n o f B o n d C o u n s e l , a n i n d e x a g r e e d t o b y t h e C o m m i s s i o n a n d t h e
R e m a r k e t i n g A g e n t t h a t w o u l d r e s u l t i n a m a r k e t r a t e o f i n t e r e s t o n t h e B o n d s . T h e W e e k l y R a t e
I n d e x s h a l l i n n o e v e n t e x c e e d t h e M a x i m u m I n t e r e s t R a t e .
O H S W e s c 2 6 0 6 9 2 4 4 7 . 6 7
9 0
"Weekly Rate Period" means each period during which a Series of 2009 Bonds bears
interest at Weekly Rates.
Section 19.02. Rules of Construction. Words of the masculine gender shalt be deemed
and construed to include correlative words of the feminine and neuter genders. Unless the
context shall otherwise indicate, words importing the singular number shall include the plural
number and vice versa, and words importing persons shall include corporations and associations,
including public bodies, as well as natural persons. Defined terms shall include any variant of
the terms set forth in this Article XIX.
The terms "hereby," "hereof," "hereto," "herein," "hereunder," and any similar terms, as
used in this Second Supplemental Indenture, refer to the Indenture.
ARTICLE XX
FINDINGS, DETERMINATIONS AND DIRECTIONS
Section 20.01. Findings and Determinations. The Commission hereby finds and
determines that the 2009 Bonds shall be issued pursuant to Section 3.01 and upon the issuance of
the 2009 Bonds, any and all acts, conditions and things required to exist, to happen and to be
performed, precedent to and in the issuance thereof, will exist, will have happened and will have
been performed, in due time, form and manner, as required by the Constitution and statutes of
the State.
Section 20.02. Recital in Bonds. There shall be included in each of the definitive 2009
Bonds, and also in each of the temporary 2009 Bonds, if any are issued, a certification and recital
that any and all acts, conditions and things required to exist, to happen and to be performed,
precedent to and in the incurring of the indebtedness evidenced by that 2009 Bond, and in the
issuing of that 2009 Bond, exist, have happened and have been performed in due time, form and
manner, as required by the Constitution and statutes of the State and the Act, and that said 2009
Bond, together with all other indebtedness of the Commission payable out of Revenues, is within
every debt and other limit prescribed by the Constitution and statutes of the State and the Act,
and that such certification and recital shall be in such form as is set forth in the form of the 2009
Bond attached hereto as Exhibit A.
Section 20.03. Effect of Findings and Recital. From and after the issuance of the 2009
Bonds, the findings and determinations herein shall be conclusive evidence of the existence of
the facts so found and determined in any action or proceeding in any court in which the validity
of the 2009 Bonds is at issue.
ARTICLE XXI
AUTHORIZATION OF 2009 BONDS
Section 21.01. Principal Amount, Designation and Series. Pursuant to the provisions
of this Indenture and the provisions of the Act, a Series of Bonds entitled to the benefit,
protection and security of such provisions is hereby authorized in the aggregate principal amount
of $ . Such Bonds shall be designated as, and shall be distinguished from the Bonds of
all other Series by the title, "Riverside County Transportation Commission Sales Tax Revenue
Bonds (Limited Tax Bonds), 2009 Series A."
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Pursuant to the provisions of this Indenture and the provisions of the Act, a Series of
Bonds entitled to the benefit, protection and security of such provisions is hereby authorized in
the aggregate principal amount of $ . Such Bonds shall be designated as, and shall be
distinguished from the Bonds of all other Series by the title, "Riverside County Transportation
Commission Sales Tax Revenue Bonds (Limited Tax Bonds), 2009 Series B."
Pursuant to the provisions of this Indenture and the provisions of the Act, a Series of
Bonds entitled to the benefit, protection and security of such provisions is hereby authorized in
the aggregate principal amount of $ . Such Bonds shall be designated as, and shall be
distinguished from the Bonds of all other Series by the title, "Riverside County Transportation
Commission Sales Tax Revenue Bonds (Limited Tax Bonds), 2009 Series C."
At any time after the execution and delivery of this Supplemental Indenture, the
Commission may execute and, upon the order of the Commission, the Trustee shall authenticate
and deliver each Series of 2009 Bonds in the aggregate principal amount set forth above.
Section 21.02. Purpose and Application of Proceeds. The 2009 Bonds are issued for
the purpose of retiring $ principal amount of the Commission's Outstanding Notes,
refunding $126,395,000 principal amount of the Commission's Outstanding 2008 Bonds and to
pay accrued interest thereon. In addition, a portion of the proceeds will be applied to fund the
2009 Bond Reserve Requirement and to pay Costs of Issuance of the 2009 Bonds.
The net proceeds from the sale of the 2009 Bonds in the amount of $ shall be
received by the Trustee, and the Trustee shall deposit or transfer such funds as follows:
(a) $ of such proceeds shall be deposited in the 2009 Costs of Issuance
Fund;
(b) $ of such proceeds shall be deposited in the 2009 Bonds Reserve
Fund in satisfaction of the 2009 Bonds Reserve Requirement;
(c) $ of such proceeds shall be transferred to the Notes Trustee for
deposit upon the order of the Commission; and
(d) $ of such proceeds shall be deposited in the Redemption Fund for
application to the redemption of the 2008 Bonds.
Section 21.03. Form, Denomination, Numbers and Letters. Each Series of 2009
Bonds shall be issued as fully registered bonds without coupons in book -entry form and in
Authorized Denominations and shall be numbered from one upward in consecutive numerical
order preceded by the letter "R" prefixed to the number. Each Series of 2009 Bonds and the
certificate of authentication shall be substantially in the form attached hereto as Exhibit A, which
form is hereby approved and adopted as the form of the 2009 Bonds and as the form of the
certificate of authentication as such form shall be completed based on the terms of each Series of
2009 Bonds set forth herein.
Section 21.04. Date, Maturities and Interest Rates. The 2009 Series A Bonds shall be
dated their Issue Date. The 2009 Series A Bonds shall be issued in the aggregate principal
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amount of $ and shallmature and be payable on June 1, 2029. The 2009 Series A
Bonds shall be issued as Variable Rate Bonds and each 2009 Series A Bond shall bear interest at
the rate or rates determined in accordance with Section 21.05. Each 2009 Series A Bond shall
initially bear interest at a Weekly Rate, and the initial Interest Payment Date is November 2,
2009.
The 2009 Series B Bonds shall be dated their Issue Date. The 2009 Series B Bonds shall
be issued in the aggregate principal amount of $ and shall mature and be payable on
June 1, 2029. The 2009 Series B Bonds shall be issued as Variable Rate Bonds and each 2009
Series B Bond shall bear interest at the rate or rates determined in accordance with Section
21.05. Each 2009 Series B Bond shall initially bear interest at a Weekly Rate, and the initial
Interest Payment Date is November 2, 2009.
The 2009 Series C Bonds shall be dated their Issue Date. The 2009 Series C Bonds shall
be issued in the aggregate principal amount of $ and shall mature and be payable on
June 1, 2029. The 2009 Series C Bonds shall be issued as Variable Rate Bonds and each 2009
Series C Bond shall bear interest at the rate or rates determined in accordance with Section
21.05. Each 2009 Series C Bond shall initially bear interest at a Weekly Rate, and the initial
Interest Payment Date is November 2, 2009.
Interest on each 2009 Bond shall be payable on each Interest Payment Date for such 2009
Bond until the principal sum of such 2009 Bond has been paid; provided, however, that if at the
maturity date of any 2009 Bond (or if the same is redeemable and shall be duly called for
redemption, then at the date fixed for redemption) funds are available for the payment or
redemption thereof, in full accordance with terms of the Indenture, such 2009 Bond shall then
cease to bear interest.
Each 2009 Bond shall bear interest from the latest of: (i) its Issue Date; (ii) the most
recent Interest Payment Date to which interest has been paid thereon or duly provided for, or (iii)
if the date of authentication of such Bond is after a Record Date but prior to the immediately
succeeding Interest Payment Date, the Interest Payment Date immediately succeeding such date
of authentication.
As long as the 2009 Bonds are Book -Entry Bonds, principal of and interest on the 2009
Bonds shall be payable by wire transfer to DTC in lawful money of the United States of
America. Principal of the 2009 Bonds shall be payable when due upon presentation and
surrender thereof at the Principal Office of the Trustee.
Each 2009 Bond shall be payable as provided in Section 2.10, including Section 2.10(E),
or, in the event the use of the Securities Depository is discontinued, the principal of each 2009
Bond shall be payable in lawful money of the United States of America upon surrender thereof at
the Principal Office of the Trustee, and the interest on each 2009 Bond shall be payable in lawful
money of the United States of America by the Trustee to the Holder thereof as of the close of
business on the Record Date, such interest to be paid by the Trustee to such Holder in
immediately available funds (by wire transfer or by deposit to the account of the Holder if such
account is maintained with the Trustee), according to the instructions given by such Holder to the
Trustee or, in the event no such instructions have been given, by check mailed by first class mail
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t o t h e H o l d e r a t s u c h H o l d e r ' s a d d r e s s a s i t a p p e a r s a s o f t h e R e c o i d D a t e o n t h e b o n d
r e g i s t r a t i o n b o o k s k e p t b y t h e T r u s t e e .
S e c t i o n 2 1 . 0 5 . I n t e r e s t R a t e s o n 2 0 0 9 B o n d s .
E x c e p t f o r 2 0 0 9 L i q u i d i t y F a c i l i t y B o n d s , w h i c h s h a l l b e a r i n t e r e s t a t t h e r a t e o r r a t e s
( b u t n o t i n e x c e s s o f t h e M a x i m u m I n t e r e s t R a t e ) , a n d b e p a y a b l e a t t h e t i m e s , s p e c i f i e d i n t h e
a p p l i c a b l e 2 0 0 9 L i q u i d i t y F a c i l i t y , t h e 2 0 0 9 B o n d s s h a l l b e C u r r e n t I n t e r e s t B o n d s a n d , u n t i l
c o n v e r t e d t o a F i x e d R a t e , t h e 2 0 0 9 B o n d s s h a l l c o n s t i t u t e V a r i a b l e R a t e I n d e b t e d n e s s a n d s h a l l
b e a r i n t e r e s t a t a V a r i a b l e R a t e d e t e r m i n e d a s p r o v i d e d i n t h i s S e c o n d S u p p l e m e n t a l I n d e n t u r e .
E a c h 2 0 0 9 B o n d s h a l l b e a r i n t e r e s t a s p r o v i d e d h e r e i n f r o m a n d i n c l u d i n g t h e I s s u e D a t e
t o b u t e x c l u d i n g t h e d a t e o f p a y m e n t i n f u l l o f s u c h 2 0 0 9 B o n d ( s u c h i n t e r e s t t o b e c o m p u t e d o n
t h e b a s i s o f a 3 6 5 / 3 6 6 - d a y y e a r a n d a c t u a l d a y s e l a p s e d d u r i n g a n y D a i l y R a t e P e r i o d , W e e k l y
R a t e P e r i o d o r C o m m e r c i a l P a p e r R a t e P e r i o d ; a n d t o b e c o m p u t e d o n t h e b a s i s o f a 3 6 0 - d a y
y e a r o f t w e l v e ( 1 2 ) 3 0 - d a y m o n t h s d u r i n g a n y L o n g - T e r m R a t e P e r i o d ) . I n t e r e s t s h a l l a c c r u e o n
t h e 2 0 0 9 B o n d s f r o m o n e I n t e r e s t P a y m e n t D a t e t o , b u t n o t i n c l u d i n g , t h e n e x t I n t e r e s t P a y m e n t
D a t e .
U p o n C o n v e r s i o n o f a S e r i e s o f 2 0 0 9 B o n d s t o a F i x e d R a t e , t h e 2 0 0 9 B o n d s o f s u c h
S e r i e s s h a l l b e a r i n t e r e s t f r o m a n d i n c l u d i n g t h e C o n v e r s i o n D a t e t o t h e d a t e o f p a y m e n t i n f u l l
o f s u c h 2 0 0 9 B o n d s ( c o m p u t e d o n t h e b a s i s o f a 3 6 0 - d a y y e a r o f t w e l v e ( 1 2 ) 3 0 - d a y m o n t h s ) .
T h e i n t e r e s t r a t e s o n e a c h 2 0 0 9 B o n d s h a l l b e d e t e r m i n e d a s p r o v i d e d i n
S e c t i o n 2 1 . 0 5 ( a ) ; p r o v i d e d , t h a t n o R a t e a s s o d e t e r m i n e d s h a l l e x c e e d t h e M a x i m u m I n t e r e s t
R a t e i n e f f e c t o n t h e d a t e o f d e t e r m i n a t i o n t h e r e o f .
A t a n y o n e t i m e , e a c h 2 0 0 9 B o n d w i t h i n a S e r i e s o f 2 0 0 9 B o n d s s h a l l h a v e t h e s a m e
I n t e r e s t R a t e D e t e r m i n a t i o n M e t h o d a n d ( e x c e p t 2 0 0 9 B o n d s t h a t a r e 2 0 0 9 L i q u i d i t y F a c i l i t y
B o n d s , 2 0 0 9 B o n d s d u r i n g a C o m m e r c i a l P a p e r R a t e P e r i o d , a n d 2 0 0 9 B o n d s o f d i f f e r e n t
m a t u r i t i e s b e a r i n g i n t e r e s t a t a F i x e d R a t e ) s h a l l b e a r i n t e r e s t a t t h e s a m e i n t e r e s t r a t e . U p o n
i s s u a n c e , t h e 2 0 0 9 S e r i e s A B o n d s , 2 0 0 9 S e r i e s B B o n d s a n d t h e 2 0 0 9 S e r i e s C B o n d s s h a l l b e a r
i n t e r e s t a t a W e e k l y R a t e .
2 1 . 0 5 ( a ) I n t e r e s t R a t e D e t e r m i n a t i o n M e t h o d .
2 1 . 0 5 ( a ) ( i ) D a i l y R a t e . U p o n a s u c c e s s f u l C o n v e r s i o n o f a n y S e r i e s o f 2 0 0 9
B o n d s t o b e a r i n t e r e s t a t t h e D a i l y R a t e p u r s u a n t t o S e c t i o n 2 1 . 0 5 ( b ) a n d u n t i l s u c h 2 0 0 9 B o n d s
a r e s u c c e s s f u l l y c o n v e r t e d t o a n o t h e r I n t e r e s t R a t e D e t e r m i n a t i o n M e t h o d p u r s u a n t t o s a i d
S e c t i o n 2 1 . 0 5 ( b ) , s u c h 2 0 0 9 B o n d s s h a l l b e a r i n t e r e s t a t a D a i l y R a t e . D u r i n g e a c h D a i l y R a t e
P e r i o d f o r a n y S e r i e s o f 2 0 0 9 B o n d s , t h e R e m a r k e t i n g A g e n t f o r s u c h S e r i e s s h a l l s e t a D a i l y
R a t e f o r t h e 2 0 0 9 B o n d s b y 9 : 3 0 a . m . , N e w Y o r k C i t y t i m e , o n e a c h B u s i n e s s D a y , w h i c h D a i l y
R a t e s h a l l b e t h e r a t e o f i n t e r e s t w h i c h , i f b o r n e b y s u c h 2 0 0 9 B o n d s i n t h e D a i l y R a t e P e r i o d ,
w o u l d , i n t h e j u d g m e n t o f t h e R e m a r k e t i n g A g e n t , h a v i n g d u e r e g a r d f o r t h e p r e v a i l i n g f i n a n c i a l
m a r k e t c o n d i t i o n s f o r T a x - E x e m p t S e c u r i t i e s t h a t a r e o f t h e s a m e g e n e r a l n a t u r e a s s u c h 2 0 0 9
B o n d s , o r T a x - E x e m p t S e c u r i t i e s t h a t a r e c o m p e t i t i v e a s t o c r e d i t a n d m a t u r i t y ( o r p e r i o d f o r
t e n d e r ) w i t h t h e c r e d i t a n d m a t u r i t y ( o r p e r i o d f o r t e n d e r ) o f s u c h 2 0 0 9 B o n d s f o r w h i c h t h e
D a i l y R a t e i s t o b e d e t e r m i n e d , b e t h e l o w e s t i n t e r e s t r a t e t h a t w o u l d e n a b l e s u c h R e m a r k e t i n g
O H S W e s e 2 6 0 6 9 2 4 4 7 . 6
1 1
9 4
Agent to place such 2009 Bonds at a price equal to 100% of the aggregate principal amount of
such 2009 Bonds (plus accrued interest, if any) on such Business Day. The Daily Rate for any
non -Business Day will be the rate for the last Business Day on which a Daily Rate was set.
21.05(a)(ii) Weekly Rate. Upon issuance and until such 2009 Bonds are
successfully converted to another Interest Rate Determination Method pursuant to
Section 21.05(b), such 2009 Bonds shall bear interest at a Weekly Rate. During each Weekly
Rate Period for any Series of 2009 Bonds, the Remarketing Agent for such Series shall set a
Weekly Rate for such 2009 Bonds, by 5:00 p.m., New York City time, on each Wednesday (or
the immediately succeeding Business Day, if such Wednesday is not a Business Day) for the
next Calendar Week; provided, that, the. Weekly Rate for the first Calendar Week (or portion
thereof) following a Conversion Date resulting in a change in the Interest Rate Determination
Method to a Weekly Rate shall be set by such Remarketing Agent on the Business Day
immediately preceding such Conversion Date. Each Weekly Rate shall be the rate of interest
that, if bome by such 2009 Bonds in the Weekly Rate Period, would, in the judgment of the
Remarketing Agent, having due regard for the prevailing financial market conditions for Tax -
Exempt Securities that are of the same general nature as such 2009 Bonds for which the Weekly
Rate is to be determined, or Tax -Exempt Securities that are competitive as to credit and maturity
(or period for tender) with the credit and maturity (or period for tender) of the 2009 Bonds for
which the Weekly Rate is to be determined, be the lowest interest rate that would enable the
Remarketing Agent to place such 2009 Bonds at a price equal to 100% of the aggregate principal
amount of such 2009 Bonds (plus accrued interest, if any) on the first day of such Weekly Rate
Period.
21.05(a)(iii) Commercial Paper Rate. Upon a successful Conversion of any
Series of 2009 Bonds to bear interest at the Commercial Paper Rate pursuant to Section 21.05(b),
and until such 2009 Bonds are successfully converted to another Interest Rate Determination
Method pursuant to said Section 21.05(b), such 2009 Bonds shall bear interest at the Commercial
Paper Rate or Rates applicable to such 2009 Bonds. The Remarketing Agent for such Series
shall select the Commercial Paper Rate Period or Periods for each of such 2009 Bonds on a
Business Day selected by the Remarketing Agent not more than five (5) Business Days prior to
the first day of such Commercial Paper Rate Period and not later than 12:30 p.m., New York
City time, on the first day of such Commercial Paper Rate Period. Each Commercial Paper Rate
Period shall be a period of not less than one (1) nor more than 270 days determined by the
Remarketing Agent with the intention of yielding the lowest overall interest expense on the
applicable 2009 Bonds, taking into account (A) all other Commercial Paper Rate Periods for all
the 2009 Bonds of the same Series bearing interest at a Commercial Paper Rate, (B) general
economic and market conditions relevant to such 2009 Bonds and (C) such other facts,
circumstances and conditions as such Remarketing Agent determines to be relevant.
Notwithstanding the foregoing, no Commercial Paper Rate Period for any 2009 Bond shall be
selected with a last day later than the fifth (5th) Business Day prior to the expiration date of any
2009 Liquidity Facility then in effect with respect to such 2009 Bond while bearing interest at
the Commercial Paper Rate. The last day of each Commercial Paper Rate Period shall be a day
immediately preceding a Business Day. If the Interest Rate Determination Method with respect
to any Series of 2009 Bonds is being converted from a Commercial Paper Rate to a new Interest
Rate Determination Method, after receipt of the Conversion Notice delivered pursuant to
Section 21.05(b), the Remarketing Agent shall determine the Commercial Paper Rate Periods
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with respect to such 2009 Bonds in such manner that, as soon as possible, all Commercial Paper
Rate Periods with respect to such 2009 Bonds shall end on the same date, which date shall be the
last day of the then -current Commercial Paper Rate Periods and, upon the establishment of such
Commercial Paper Rate Periods, the day next succeeding the last day of all such Commercial
Paper Rate Periods shall be the Conversion Date for the new Interest Rate Determination
Method. The Remarketing Agent, promptly upon the determination of the last day of such
Commercial Paper Rate Periods prior to Conversion to a new Interest Rate Determination
Method, shall give written notice of such last day and such Conversion Date to the Notice
Parties.
The Remarketing Agent shall set a Commercial Paper Rate for each 2009 Bond
bearing interest at the Commercial Paper Rate not later than 12:30 p.m., New York City time, on
the first day. of each Commercial Paper Rate Period for such Series of 2009 Bonds. The
Commercial Paper Rate applicable to each 2009 Bond bearing interest at the Commercial Paper
Rate will be the rate determined by the Remarketing Agent to be the lowest interest rate that
would enable such Remarketing Agent to place such 2009 Bond on the first day of the applicable
Commercial Paper Rate Period at a price equal to 100% of the aggregate principal amount of
such 2009 Bond.
21.05(a)(iv)(A) Long -Term Rate. Upon a successful Conversion of any
Series of 2009 Bonds to a Long -Term Rate pursuant to Section 21.05(b), and until the
establishment of a new Long -Term Rate Period and a new Long -Term Rate for such 2009
Bonds, or until such 2009 Bonds are successfully converted to another Interest Rate
Determination Method pursuant to Section 21.05(b) or Section 21.05(a)(iv)(F), such 2009 Bonds
shall bear interest at the Long -Term Rate specified for the Long -Term Rate Period so established
upon such Conversion. The Commission shall select the duration of each Long -Term Rate
Period for each Series of 2009 Bonds and shall include the duration of the Long -Term Rate
Period in the Conversion Notice given with respect to such Long -Term Rate Period pursuant to
Section 21.05(b) or the Long -Term Rate Continuation Notice given with respect to any new
Long -Term Rate and Long -Term Rate Period for such 2009 Bonds. Each Long -Term Rate
Period shall commence on the Long -Tenn Rate Conversion Date and end on a Business Day
selected by the Commission which is a minimum of 180 days after the Long -Term Rate
Conversion Date, but in no event later than the maturity date of the applicable 2009 Bonds. With
respect to each Long -Term Rate Period, the Remarketing Agent will set the Long -Term Rate for
the 2009 Bonds by 5:00 p.m., New York City time, on the applicable Long -Term Rate
Computation Date. Subject to the provisions of Section 21.05(a)(iv)(G), each Long -Term Rate
shall be the rate of interest that, if borne by the Series of 2009 Bonds for which the Long -Term
Rate is to be determined, would, in the judgment of the Remarketing Agent, having due regard
for the prevailing financial market conditions for Tax -Exempt Securities that are of the same
general nature as the such 2009 Bonds, or Tax -Exempt Securities that arc competitive as to credit
and maturity (or period for tender) with the credit and maturity (or period for tender) of such
2009 Bonds, be the lowest interest rate that would enable such Remarketing Agent to place such
2009 Bonds at a price equal to 100% of the aggregate principal amount of such 2009 Bonds on
the first day of such Long -Term Rate Period.
21.05(a)(iv)(B) Long -Term Rate Continuation. As of the day following the
last day of a Long -Term Rate Period for any Series of 2009 Bonds, unless the Commission has
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given a Conversion Notice with respect to the Conversion of such 2009 Bonds to another Interest
Rate Determination Method pursuant to Section 21.05(b), the Commission may establish a new
Long -Term Rate Period and Long -Term Rate for such 2009 Bonds with such right to be
exercised by delivery of a written notice of an Authorized Representative containing the contents
specified in Section 21.05(a)(iv)(D) (a "Long -Term Rate Continuation Notice") to the Notice
Parties no less than twenty (20) days prior to the effective date of the new Long -Term Rate
Period.
The Long -Term Rate Continuation Notice must be accompanied by an Opinion of
Bond Counsel stating that the new Long -Term Rate Period is authorized and permitted under this
Second Supplemental Indenture and will not, in and of itself, adversely affect the Tax -Exempt
status of the interest on the 2009 Bonds subject to such Long -Term Rate Continuation Notice.
21.05(a)(iv)(C) Limitations. Any establishment of a new Long -Term Rate
and Long -Term Rate Period for any Series of 2009 Bonds pursuant to Section 21.05(a)(iv)(B)
above must comply with the following:
- the first day of such new Long -Tenn Rate Period must be an Interest
Payment Date on which such 2009 Bonds are subject to mandatory tender pursuant to the
applicable provisions of Section 22.05;
the first day of such new Long -Term Rate Period must be a Business Day;
and
- no new Long -Term Rate shall become effective unless the Favorable
Opinion of Bond Counsel referred to in Section 21.05(a)(iv)(B) is redelivered on (and as of) the
first day of the new Long -Term Rate Period and all such Outstanding 2009 Bonds are
successfully remarketed in the new Long -Term Rate Period at the new Long -Term Rate on the
first day of the new Long -Term Rate Period.
21.05(a)(iv)(D) Contents of Long -Term Rate Continuation Notice. The
Commission's Long -Term Rate Continuation Notice for a Series of 2009 Bonds must specify:
(i) the proposed Long -Term Rate Period; (ii) whether any 2009 Credit Enhancement or 2009
Liquidity Facility then in effect for such 2009 Bonds will remain in effect during the proposed
Long -Term Rate Period; and (iii) if new 2009 Credit Enhancement or a new 2009 Liquidity
Facility for such 2009 Bonds will be provided to be effective during the proposed Long -Term
Rate Period, the form of such 2009 Credit Enhancement or 2009 Liquidity Facility and the
identity of such 2009 Liquidity Provider.
21.05(a)(iv)(E) Notice to Holders. Upon receipt of a Long -Term Rate
Continuation Notice from an Authorized Representative, as soon as possible, but in any event not
less than fifteen (15) days prior to the first day of the proposed Long -Term Rate Period, the
Trustee shall give notice by first-class mail to the Holders of the 2009 Bonds of the applicable
Series which notice shall state in substance:
- that a new Long -Term Rate Period and Long -Term Rate is to be
established for such 2009 Bonds on the applicable Long -Term Rate Conversion Date if the
conditions specified in this Second Supplemental Indenture are satisfied on or before such date;
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- that all 2009 Bonds of such Series are subject to mandatory tender for
purchase on the fast day of the new Long -Term Rate Period (whether or not the proposed new
Long -Term Rate Period becomes effective on such date, unless there is no Liquidity Facility for
the existing Long -Term Rate Period and the proposed new Long -Term Rate Period does not
become effective, in which case the mandatory tender will be cancelled) at the Purchase Price,
which shall be specified therein;
- the first day of the new Long -Term Rate Period;
- that the Commission has delivered to the Trustee an Opinion of Bond
Counsel to the effect that the new Long -Term Rate Period is authorized and permitted under this
Second Supplemental Indenture and will not, in and of itself, adversely affect the Tax -Exempt
status of the interest on the 2009 Bonds of such Series;
- that a new Long -Term Rate Period and Long -Term Rate for the 2009
Bonds of such Series shall not be established unless the Favorable Opinion of Bond Counsel
referred to above is redelivered to the Trustee on (and as of) the first day of the new Long -Term
Rate Period and all such 2009 Bonds are successfully remarketed in the new Long,Term Rate
Period and at the new Long -Term Rate on the first day thereof;
the CUSIP numbers or other identification information of such 2009
Bonds; and
- that, to the extent that there shall be on deposit with the Trustee on the first
day of the new Long -Term Rate Period an amount of money sufficient to pay the Purchase Price
thereof, all such 2009 Bonds not delivered to the Trustee on or prior to such date shall be deemed
to have been properly tendered for purchase and shall cease to constitute or represent a right on
behalf of the Holder thereof to the payment of principal thereof or interest thereon and shall
represent and constitute only the right to payment of the Purchase Price on deposit with the
Trustee, without interest accruing thereon after such date.
21.05(a)(iv)(F) End of Long -Term Rate. In the event the Commission has
not given a Long -Term Rate Continuation Notice or a Conversion Notice with respect to 2009
Bonds bearing interest at a Long -Term Rate at the time required by Section 21.05(a)(iv)(B) or
Section 21.05(b), as applicable, or if the conditions to the effectiveness of (i) a new Long -Term
Rate Period and new Long -Term Rate set forth in Section 21.05(a)(iv)(C) or (ii) Conversion to a
new Interest Rate Determination Method sct forth in Section 21.05(b)(ii)(D), as applicable, are
not satisfied, then on the day following the last day of the current Long -Term Rate Period, a
Weekly Rate Period shall automatically commence for such 2009 Bonds; provided, however,
that such 2009 Bonds shall not be subject to optional tender and shall bear interest at the lesser of
the SIFMA Swap Index plus three percent (3%) and the Maximum Interest Rate until such time
as such 2009 Bonds are successfully remarketed at an Interest Rate Determination Method in
accordance with the provisions hereof, provided that notice of Conversion may be given five (5)
Business Days prior to the Conversion Date.
21.05(a)(iv)(G) Sale at Premium or Discount. Notwithstanding the
provisions of Section 21.05(a)(iv)(A) or 21.05(a)(v)(A), the Long -Tenn Rate or Fixed Rate, as
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the case may be, shall be the rate of interest per annum determined by the Remarketing Agent to
be the interest rate which, if borne by the applicable Series of 2009 Bonds, would enable the
Remarketing Agent to sell such 2009 Bonds at a price (without regard to accrued interest) which
will result in the lowest net interest cost for such 2009 Bonds, after taking into account any
premium or discount at which such 2009 Bonds are sold by the Remarketing Agent, provided
that:
- the Remarketing Agent certifies to the Trustee and the Commission that
the sale of such 2009 Bonds at the interest rate and premium or discount specified by the
Remarketing Agent is expected to result in the lowest net interest cost for such 2009 Bonds on
the Long -Term Rate or Fixed Rate Conversion Date;
- the Commission consents in writing to the sale of such 2009 Bonds by the
Remarketing Agent at such premium or discount;
- in the case of 2009 Bonds to be sold at a discount, either (a) a 2009
Liquidity Facility is in effect with respect to such 2009 Bonds and provides for the purchase of
such 2009 Bonds at such discount, or (b) the Commission agrees to transfer to the Remarketing
Agent on the Conversion Date, in immediately available funds for deposit in the 2009
Commission Account, an amount equal to such discount;
in the case of 2009 Bonds to be sold at a premium, the Remarketing Agent
shall transfer to the Trustee an amount equal to such premium, which amount shall either be used
to pay costs associated with the Conversion or deposited in the Revenue Fund as specified by the
Commission; and
- on or before the date of the determination of the Long -Term Rate or Fixed
Rate, the Commission delivers to the Trustee and the Remarketing Agent a letter of Bond
Counsel to the effect that Bond Counsel expects to be able to give a Favorable Opinion of Bond
Counsel on the Conversion Date; and
- on or before the Conversion Date, a Favorable Opinion of Bond Counsel
shall have been received by the Trustee and confirmed to the Commission and the Remarketing
Agent.
21.05(a)(v) Fixed Rate.
21.05(a)(v)(A) The Interest Rate Determination Method for any Series of
2009 Bonds may be converted from any Variable Rate to a Fixed Rate in accordance with the
provisions of Section 21.05(b). After such Conversion, such 2009 Bonds shall bear interest at
the Fixed Rate and shall not be subject to Conversion to another Interest Rate Determination
Method. Subject to the provisions of Section 21.05(a)(iv)(G), the interest rate to be borne by
such 2009 Bonds of each maturity from the Fixed Rate Conversion Date shall be the rate
determined by the applicable Remarketing Agent on the Fixed Rate Computation Date to be the
rate that, if borne by such 2009 Bonds, would, in the judgment of the Remarketing Agent having
due regard for prevailing market conditions for Tax -Exempt Securities that are comparable to
such 2009 Bonds, be the lowest interest rate that would enable such Remarketing Agent to place
such 2009 Bonds of such maturity for which the Fixed Rate is to be determined at a price equal
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"
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d a t e ; a n d p r o v i d e d f u r t h e r t h a t s u c h 2 0 0 9 B o n d s h a l l c o n t i n u e t o b e s u b j e c t t o m a n d a t o r y
r e d e m p t i o n f r o m M a n d a t o r y S i n k i n g A c c o u n t P a y m e n t s e s t a b l i s h e d f o r s u c h 2 0 0 9 B o n d u n l e s s ,
o n a n y M a n d a t o r y S i n k i n g A c c o u n t P a y m e n t d u e d a t e f o r s u c h 2 0 0 9 B o n d , s u c h M a n d a t o r y
S i n k i n g A c c o u n t P a y m e n t i s a p p l i e d t o t h e p a y m e n t o f t h a t p o r t i o n o f s u c h 2 0 0 9 B o n d w h i c h
n o w m a t u r e s o n s u c h M a n d a t o r y S i n k i n g A c c o u n t P a y m e n t d u e d a t e .
2 1 . 0 5 ( a ) ( v i ) F a i l u r e t o D e t e r m i n e R a t e f o r C e r t a i n R a t e P e r i o d s .
2 1 . 0 5 ( a ) ( v i ) ( A ) I f , f o r a n y r e a s o n , t h e D a i l y R a t e o r t h e W e e k l y R a t e o n
a n y S e r i e s o f 2 0 0 9 B o n d s i s n o t e s t a b l i s h e d a s p r o v i d e d h e r e i n b y t h e R e m a r k e t i n g A g e n t
p u r s u a n t t o S e c t i o n 2 1 . 0 5 ( a ) ( i ) o r ( i i ) o r n o R e m a r k e t i n g A g e n t s h a l l b e s e r v i n g a s s u c h
h e r e u n d e r f o r s u c h 2 0 0 9 B o n d s o r a n y R a t e s o e s t a b l i s h e d i s h e l d t o b e i n v a l i d o r u n e n f o r c e a b l e
w i t h r e s p e c t t o a n y s u c h R a t e P e r i o d , t h e n t h e i n t e r e s t r a t e f o r s u c h R a t e P e r i o d s h a l l b e 1 0 0 % o f
t h e a p p l i c a b l e R a t e I n d e x o n t h e d a t e s u c h D a i l y R a t e o r W e e k l y R a t e w a s ( o r w o u l d h a v e b e e n )
d e t e r m i n e d a s p r o v i d e d a b o v e .
2 1 . 0 5 ( a ) ( v i ) ( B ) I f , f o r a n y r e a s o n , t h e R e m a r k e t i n g A g e n t f a i l s t o s e t t h e
l e n g t h o f a n y C o m m e r c i a l P a p e r R a t e P e r i o d o r t o e s t a b l i s h a n y C o m m e r c i a l P a p e r R a t e f o r a n y
2 0 0 9 B o n d o r a c o u r t h o l d s a n y C o m m e r c i a l P a p e r R a t e P e r i o d o r C o m m e r c i a l P a p e r R a t e f o r
a n y 2 0 0 9 B o n d t o b e i n v a l i d o r u n e n f o r c e a b l e , a C o m m e r c i a l P a p e r R a t e P e r i o d f o r s u c h 2 0 0 9
B o n d s h a l l l a s t t h r o u g h t h e n e x t d a y i m m e d i a t e l y p r e c e d i n g a B u s i n e s s D a y ( o r u n t i l t h e e a r l i e r
s t a t e d m a t u r i t y t h e r e o f ) a n d t h e i n t e r e s t r a t e a p p l i c a b l e t o s u c h 2 0 0 9 B o n d s h a l l b e 1 0 0 % o f t h e
D a i l y R a t e I n d e x o n t h e f i r s t d a y o f s u c h R a t e P e r i o d .
2 1 . 0 5 ( a ) ( v i i ) N o t i c e o f R a t e s . I n a t i m e l y f a s h i o n f o l l o w i n g t h e d e t e r m i n a t i o n o f
a n y R a t e , t h e R e m a r k e t i n g A g e n t e s t a b l i s h i n g s u c h R a t e s h a l l g i v e w r i t t e n n o t i c e o r n o t i c e b y
E l e c t r o n i c M e a n s t h e r e o f t o t h e C o m m i s s i o n , t h e T r u s t e e , t h e 2 0 0 9 L i q u i d i t y P r o v i d e r , i f a n y ,
a n d t h e 2 0 0 9 C r e d i t P r o v i d e r , i f a n y . S u c h n o t i c e s h a l l a l s o i n c l u d e d e t a i l s a s t o t h e p r i n c i p a l
a m o u n t o f t h e 2 0 0 9 B o n d s a n d t h e I n t e r e s t R a t e D e t e r m i n a t i o n M e t h o d a t t h e t i m e a p p l i c a b l e .
P r o m p t l y u p o n r e c e i p t o f n o t i c e f r o m a R e m a r k e t i n g A g e n t o f a n y F i x e d R a t e , t h e T r u s t e e s h a l l
g i v e t h e H o l d e r o f e a c h 2 0 0 9 B o n d b e i n g c o n v e r t e d t o a F i x e d R a t e n o t i c e o f t h e F i x e d R a t e .
O H S W e s e 2 6 0 6 9 2 4 4 7 . 6
1 7
1 0 0
21.05(a)(viii) Absence of Remarketing Agent; Binding Determination. If no
Remarketing Agent shall be serving hereunder with respect to any Series of 2009 Bonds (other
than 2009 Bonds in a Fixed Rate Period), the determination of the applicable Rate Index shall be
made by the Trustee at the direction of the Commission. The determination of any Rate or Rate
Index by a Remarketing Agent or, as aforesaid, the Trustee, at the direction of the Commission,
with respect to any 2009 Bond, shall be conclusive and binding upon the Commission, the
Trustee, the Remarketing Agent, each 2009 Credit Provider, each 2009 Liquidity Provider and
the Holder of such 2009 Bond.
21.05(a)(ix) No Liability. In determining the interest rate that any 2009 Bond
shall bear as provided in this Section 21.05, neither the Remarketing Agent nor the Trustee shall
have any liability to the Commission or the Holder of such 2009 Bond, except for its negligence
or willful misconduct.
21.05(b) Conversion of Interest Rate Determination Method.
21.05(b)(i) Right of Conversion. The Interest Rate Determination
Method for any Series of 2009 Bonds is subject to Conversion from time to time by the
Commission, with such right to be exercised by delivery of a written notice of an Authorized
Representative containing the contents specified in Section 21.05(b)(iii) (each such notice being
a "Conversion Notice") to the Notice Parties as follows (except as otherwise provided in Section
21.04(a)(iv)(F)):
(1) at least two (2) Business Days prior to the fifteenth (15th) day preceding
the effective date of such proposed Conversion, in the event of a Conversion to a Daily
Rate Period, Weekly Rate Period or Commercial Paper Rate Period; and
(2) at least three (3) Business Days prior to the fifteenth (15th) day preceding
the effective date of such proposed Conversion, in the event of a Conversion to a Long -
Term Rate or a Fixed Rate.
Each Authorized Representative is hereby authorized to execute and deliver a
Conversion Notice to change the Interest Rate Determination Method at such times or times as
the officer executing the Conversion Notice determines to be in the best interests of the
Commission, such determination to be conclusively evidenced by such execution.
The Conversion Notice must be accompanied by an Opinion of Bond Counsel
stating that the Conversion is authorized and permitted under this Indenture and will not, in and
of itself, adversely affect the Tax -Exempt status of the interest on any of such 2009 Bonds.
21.05(b)(ii) Limitations. Any Conversion with respect to a Series of 2009
Bonds pursuant to this Section 21.05(b) must comply with the following:
21.05(b)(ii)(A) the Conversion Date must be a date on which such 2009
Bonds are subject to mandatory tender pursuant to the applicable provisions of Section 22.05;
OHS West:260692447.6
18
•
101
"
2 1 . 0 5 ( b ) ( i i ) ( B ) t h e C o n v e r s i o n D a t e m u s t b e a B u s i n e s s D a y a n d , i f t h e
C o n v e r s i o n i s f r o m t h e C o m m e r c i a l P a p e r R a t e , s h a l l b e a d a t e d e t e r m i n e d i n a c c o r d a n c e w i t h
S e c t i o n 2 1 . 0 5 ( a ) ( i i i ) ;
2 1 . 0 5 ( b ) ( i i ) ( C ) t h e 2 0 0 9 L i q u i d i t y F a c i l i t y f o r s u c h 2 0 0 9 B o n d s a f t e r a
C o n v e r s i o n t o a V a r i a b l e R a t e ( o t h e r t h a n a L o n g - T e r m R a t e ) m u s t c o v e r p r i n c i p a l p l u s a c c r u e d
i n t e r e s t ( c o m p u t e d a t t h e M a x i m u m I n t e r e s t R a t e t h e n i n e f f e c t o n t h e b a s i s o f a 3 6 5 - d a y y e a r
a n d a c t u a l d a y s e l a p s e d o r a 3 6 0 d a y y e a r o f t w e l v e 3 0 - d a y m o n t h s , a s a p p l i c a b l e ) f o r t h e
m a x i m u m n u m b e r o f d a y s b e t w e e n I n t e r e s t P a y m e n t D a t e s p e r m i t t e d u n d e r t h a t I n t e r e s t R a t e
D e t e r m i n a t i o n M e t h o d , p l u s s u c h a d d i t i o n a l n u m b e r o f d a y s , i f a n y , a s s h a l l b e r e q u i r e d b y e a c h
R a t i n g A g e n c y t h e n r a t i n g s u c h 2 0 0 9 B o n d s ; p r o v i d e d t h a t i f t h e n u m b e r o f d a y s o f i n t e r e s t
c o v e r a g e p r o v i d e d b y t h e a p p l i c a b l e 2 0 0 9 L i q u i d i t y F a c i l i t y i s b e i n g c h a n g e d f r o m t h e n u m b e r
o f d a y s p r e v i o u s l y i n p l a c e , t h e T r u s t e e s h a l l h a v e a l s o r e c e i v e d a R a t i n g C o n f i r m a t i o n f r o m
e a c h o f t h e R a t i n g A g e n c i e s t h e n r a t i n g s u c h 2 0 0 9 B o n d s ;
2 1 . 0 5 ( b ) ( i i ) ( D ) n o C o n v e r s i o n s h a l l b e c o m e e f f e c t i v e u n l e s s . t h e F a v o r a b l e
O p i n i o n o f B o n d C o u n s e l r e f e r r e d t o i n S e c t i o n 2 1 . 0 5 ( b ) ( i ) i s r e d e l i v e r e d o n ( a n d a s o f ) t h e
C o n v e r s i o n D a t e a n d a l l a f f e c t e d O u t s t a n d i n g 2 0 0 9 B o n d s a r e s u c c e s s f u l l y p u r c h a s e d o r d e e m e d
p u r c h a s e d a n d r e m a r k e t e d i n t h e n e w I n t e r e s t R a t e D e t e r m i n a t i o n M e t h o d o n t h e C o n v e r s i o n
D a t e ; a n d
2 1 . 0 5 ( b ) ( i i ) ( E ) u p o n C o n v e r s i o n o f a n y S e r i e s o f 2 0 0 9 B o n d s t o a F i x e d
R a t e P e r i o d o r a L o n g - T e r m R a t e P e r i o d w i t h o u t a L i q u i d i t y F a c i l i t y , a n A u t h o r i z e d
R e p r e s e n t a t i v e m a y p r o v i d e i n t h e C o n v e r s i o n N o t i c e t o t h e a p p l i c a b l e 2 0 0 9 L i q u i d i t y P r o v i d e r a
r e q u e s t f o r t e r m i n a t i o n o f t h e 2 0 0 9 L i q u i d i t y F a c i l i t y w i t h r e s p e c t t o s u c h 2 0 0 9 B o n d s t o b e
e f f e c t i v e u p o n s u c h C o n v e r s i o n .
2 1 . 0 5 ( b ) ( i i i ) C o n t e n t s o f C o n v e r s i o n N o t i c e . T h e C o n v e r s i o n N o t i c e m u s t
s p e c i f y : ( A ) t h e p r o p o s e d C o n v e r s i o n D a t e ; ( B ) t h e n e w I n t e r e s t R a t e D e t e r m i n a t i o n M e t h o d t o
t a k e e f f e c t ; ( C ) i f t h e C o n v e r s i o n i s t o a L o n g - T e r m R a t e , t h e L o n g - T e r m R a t e P e r i o d ; ( D )
w h e t h e r a n y 2 0 0 9 C r e d i t E n h a n c e m e n t o r 2 0 0 9 L i q u i d i t y F a c i l i t y t h e n i n e f f e c t w i l l r e m a i n i n
e f f e c t a f t e r t h e p r o p o s e d C o n v e r s i o n ; ( E ) i f n e w 2 0 0 9 C r e d i t E n h a n c e m e n t o r a n A l t e r n a t e
L i q u i d i t y F a c i l i t y w i l l b e p r o v i d e d t o b e e f f e c t i v e u p o n s u c h C o n v e r s i o n , t h e f o r m o f s u c h 2 0 0 9
C r e d i t E n h a n c e m e n t o r 2 0 0 9 L i q u i d i t y F a c i l i t y a n d t h e i d e n t i t y o f t h e 2 0 0 9 C r e d i t P r o v i d e r o r
2 0 0 9 L i q u i d i t y P r o v i d e r ; a n d ( F ) i f t h e C o n v e r s i o n i s t o a L o n g - T e r m R a t e P e r i o d o r F i x e d R a t e
P e r i o d , t h e r e d e m p t i o n d a t e s a n d r e d e m p t i o n p r i c e s a p p l i c a b l e t o s u c h L o n g - T e r m R a t e P e r i o d o r
F i x e d R a t e P e r i o d .
2 1 . 0 5 ( b ) ( i v ) N o t i c e t o H o l d e r s . U p o n r e c e i p t o f a C o n v e r s i o n N o t i c e f r o m a n
A u t h o r i z e d R e p r e s e n t a t i v e , a s s o o n a s p o s s i b l e , b u t i n a n y e v e n t n o t l e s s t h a n f i f t e e n ( 1 5 ) d a y s
p r i o r t o t h e p r o p o s e d C o n v e r s i o n D a t e , t h e T r u s t e e s h a l l g i v e n o t i c e b y f i r s t - c l a s s m a i l t o t h e
H o l d e r s o f t h e a f f e c t e d 2 0 0 9 B o n d s , w h i c h n o t i c e s h a l l s t a t e i n s u b s t a n c e :
2 1 . 0 5 ( b ) ( i v ) ( A ) t h a t t h e I n t e r e s t R a t e D e t e r m i n a t i o n M e t h o d f o r t h e
a p p l i c a b l e 2 0 0 9 B o n d s s h a l l b e c o n v e r t e d t o t h e s p e c i f i e d V a r i a b l e R a t e o r t h e F i x e d R a t e , a s t h e
c a s e m a y b e , o n t h e a p p l i c a b l e C o n v e r s i o n D a t e i f t h e c o n d i t i o n s s p e c i f i e d i n t h i s S e c o n d
S u p p l e m e n t a l I n d e n t u r e a r e s a t i s f i e d o n o r b e f o r e s u c h d a t e ;
O H S W e s C 2 6 0 6 9 2 4 4 7 . 6
1 9
1 0 2
21.05(b)(iv)(B) the applicable Conversion Date;
21.05(b)(iv)(C) that the Commission has delivered to the Trustee an
Opinion of Bond Counsel to the effect that the Conversion is authorized and permitted under this
Indenture and will not, in and of itself, adversely affect the Tax -Exempt status of the interest on
any of such 2009 Bonds;
21.05(b)(iv)(D) that the Interest Rate Determination Method for such 2009
Bonds shall not be converted unless the Favorable Opinion of Bond Counsel referred to above is
redelivered to the Trustee on (and as of) the Conversion Date and all such 2009 Bonds are
successfully purchased and remarketed in the new Interest Rate Determination Method on the
Conversion Date;
21.05(b)(iv)(E) the CUSIP numbers or other identification information of
such 2009 Bonds;
21.05(b)(iv)(F) that all such 2009 Bonds are subject to mandatory tender
for purchase on the Conversion Date (whether or not the proposed Conversion becomes effective
on such date, unless converting from a Long -Term Rate Period for which there is no Liquidity
Facility and the proposed Conversion does not become effective, in which case the mandatory
tender will be cancelled) at the applicable Purchase Price, which Purchase Price shall be
specified in the notice; and
21.05(b)(iv)(G) that, to the extent that there shall be on deposit with the
Trustee on the applicable Conversion Date an amount of money sufficient to pay the Purchase
Price thereof, all 2009 Bonds to be converted on the Conversion Date not delivered to the
Trustee on or prior to the Conversion Date shall be deemed to have been properly tendered for
purchase and shall cease to constitute or represent a right on behalf of the Holder thereof to the
payment of principal thereof or interest thereon and shall represent and constitute only the right
to payment of the Purchase Price on deposit with the Trustee, without interest accruing thereon
after the Conversion Date.
21.05(b)(v) Failure of Conditions to be Met. If the Commission fails to deliver
the Favorable Opinion of Bond Counsel required by Section 21.05(b)(ii)(D) to the Trustee on or
before the Conversion Date or if the Trustee receives written notice to the effect that the
Remarketing Agent has not successfully remarketed all of the Outstanding 2009 Bonds of a
Series at the new Interest Rate Determination Method, the Interest Rate Determination Method
shall not be converted, but such 2009 Bonds shall be deemed to have been tendered for purchase
on the Conversion Date specified in the Conversion Notice (except if converting from a Long -
Term Rate Period for which there is no Liquidity Facility) and shall be purchased on the
Conversion Date specified in the Conversion Notice and, except as otherwise provided in
Section 21.05(a)(iv)(F), such 2009 Bonds shall continue to bear interest at the Interest Rate
Determination Method in effect prior to the proposed Conversion Date specified in the
Conversion Notice; provided, however, that notwithstanding anything to the contrary provided in
this Section 21.05, the rate of interest on such 2009 Bonds shall be determined on the proposed
Conversion Date and, if sufficient funds are not available for the purchase of such 2009 Bonds,
the provisions of Section 22.11(d) shall apply. In such event, the Commission and the Holders
OHS West:260692447.6
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103
"
o f s u c h 2 0 0 9 B o n d s s h a l l b e r e s t o r e d ( e x c e p t a s a f o r e s a i d w i t h r e s p e c t t o t h e p u r c h a s e o f 2 0 0 9
B o n d s ) t o t h e i r f o r m e r p o s i t i o n s a n d r i g h t s h e r e u n d e r w i t h r e s p e c t t o s u c h 2 0 0 9 B o n d s , a n d a l l
r i g h t s o f t h e C o m m i s s i o n h e r e u n d e r s h a l l c o n t i n u e a s i f n o s u c h p r o c e e d i n g s f o r t h e C o n v e r s i o n
o f t h e I n t e r e s t R a t e D e t e r m i n a t i o n M e t h o d o n s u c h 2 0 0 9 B o n d s h a d t a k e n p l a c e .
T h e T r u s t e e s h a l l i m m e d i a t e l y n o t i f y b y E l e c t r o n i c M e a n s t h e N o t i c e P a r t i e s o f
e a c h s u c h f a i l e d C o n v e r s i o n .
2 1 . 0 5 ( b ) ( v i ) N o t i c e F a i l u r e N o B a r . F a i l u r e o f a H o l d e r o f a 2 0 0 9 B o n d t o
r e c e i v e t h e n o t i c e d e s c r i b e d i n S e c t i o n 2 1 . 0 5 ( b ) ( i v ) , o r a n y d e f e c t t h e r e i n , s h a l l n o t a f f e c t t h e
v a l i d i t y o f a n y R a t e o r a n y c o n t i n u a t i o n o f o r c h a n g e i n t h e I n t e r e s t R a t e D e t e r m i n a t i o n M e t h o d
f o r a n y o f t h e 2 0 0 9 B o n d s o r e x t e n d t h e p e r i o d f o r t e n d e r i n g a n y o f t h e 2 0 0 9 B o n d s f o r p u r c h a s e ,
a n d t h e T r u s t e e s h a l l n o t b e l i a b l e t o a n y H o l d e r o f a 2 0 0 9 B o n d b y r e a s o n o f t h e f a i l u r e o f s u c h
H o l d e r t o r e c e i v e s u c h n o t i c e o r a n y d e f e c t t h e r e i n .
2 1 . 0 5 ( b ) ( v i i ) N o C o n v e r s i o n D u r i n g C o n t i n u a n c e o f E v e n t o f D e f a u l t . N o
C o n v e r s i o n s h a l l o c c u r u n d e r t h i s S e c t i o n 2 1 . 0 5 ( b ) i f a t t h e t i m e o f s u c h C o n v e r s i o n a n E v e n t o f
D e f a u l t s h a l l h a v e o c c u r r e d a n d b e c o n t i n u i n g . T h e T r u s t e e a n d t h e R e m a r k e t i n g A g e n t m a y
c o n c l u s i v e l y r e l y u p o n a c e r t i f i c a t e o f a n A u t h o r i z e d R e p r e s e n t a t i v e t h a t n o s u c h d e f a u l t e x i s t s .
2 1 . 0 5 ( b ) ( v i i i ) N o t i c e t o R e m a r k e t i n g A g e n t . T h e C o m m i s s i o n m a y n o t e l e c t a
c h a n g e i n t h e I n t e r e s t R a t e D e t e r m i n a t i o n M e t h o d f o r a n y S e r i e s o f 2 0 0 9 B o n d s w i t h o u t w r i t t e n
n o t i c e t o t h e R e m a r k e t i n g A g e n t f o r s u c h 2 0 0 9 B o n d s .
2 1 . 0 5 ( b ) ( i x ) R e s c i s s i o n o f E l e c t i o n . N o t w i t h s t a n d i n g a n y t h i n g h e r e i n t o t h e
c o n t r a r y , t h e C o m m i s s i o n m a y r e s c i n d a n y C o n v e r s i o n N o t i c e g i v e n p u r s u a n t t o t h i s
S e c t i o n 2 1 . 0 5 ( b ) p r i o r t o t h e p r o p o s e d C o n v e r s i o n D a t e s e t f o r t h i n t h e C o n v e r s i o n N o t i c e b y
g i v i n g w r i t t e n n o t i c e t h e r e o f t o t h e N o t i c e P a r t i e s t w o o r m o r e B u s i n e s s D a y s p r i o r t o s u c h
p r o p o s e d C o n v e r s i o n D a t e . I f t h e T r u s t e e r e c e i v e s n o t i c e o f s u c h r e s c i s s i o n p r i o r t o t h e t i m e t h e
T r u s t e e h a s g i v e n n o t i c e t o t h e H o l d e r s o f t h e a f f e c t e d 2 0 0 9 B o n d s p u r s u a n t t o
S e c t i o n 2 1 . 0 5 ( b ) ( i v ) , t h e n t h e C o n v e r s i o n N o t i c e p r e v i o u s l y d e l i v e r e d b y t h e C o m m i s s i o n s h a l l
b e o f n o f o r c e a n d e f f e c t . I f t h e T r u s t e e r e c e i v e s n o t i c e f r o m t h e C o m m i s s i o n o f r e s c i s s i o n o f t h e
C o n v e r s i o n N o t i c e a f t e r t h e T r u s t e e h a s g i v e n n o t i c e t o t h e H o l d e r s o f t h e a f f e c t e d 2 0 0 9 B o n d s
p u r s u a n t t o S e c t i o n 2 1 . 0 5 ( b ) ( i v ) , t h e n s u c h 2 0 0 9 B o n d s s h a l l c o n t i n u e t o b e s u b j e c t t o m a n d a t o r y
t e n d e r f o r p u r c h a s e o n t h e C o n v e r s i o n D a t e s p e c i f i e d i n t h e C o n v e r s i o n N o t i c e ( u n l e s s , p r i o r t o
t h e p r o p o s e d C o n v e r s i o n D a t e , s u c h 2 0 0 9 B o n d s w e r e i n a L o n g - T e r m R a t e P e r i o d f o r w h i c h
t h e r e w a s n o L i q u i d i t y F a c i l i t y ) , a n d t h e R a t e P e r i o d f o r s u c h 2 0 0 9 B o n d s s h a l l a u t o m a t i c a l l y
a d j u s t t o , o r c o n t i n u e a s , a W e e k l y R a t e P e r i o d o n t h e C o n v e r s i o n D a t e s p e c i f i e d i n t h e
C o n v e r s i o n N o t i c e . N o O p i n i o n o f B o n d C o u n s e l s h a l l b e r e q u i r e d i n c o n n e c t i o n w i t h a n y
a u t o m a t i c a d j u s t m e n t t o a W e e k l y R a t e P e r i o d .
2 1 . 0 5 ( c ) C o n v e r s i o n o f 2 0 0 9 L i q u i d i t y F a c i l i t y B o n d s . N o t w i t h s t a n d i n g a n y t h i n g
t o t h e c o n t r a r y c o n t a i n e d i n t h e I n d e n t u r e , i f a l l o f t h e O u t s t a n d i n g 2 0 0 9 B o n d s o f a n y S e r i e s a r e
2 0 0 9 L i q u i d i t y F a c i l i t y B o n d s , s u c h 2 0 0 9 B o n d s m a y b e c o n v e r t e d t o a F i x e d R a t e o n s u c h
C o n v e r s i o n D a t e a s s h a l l b e a c c e p t a b l e t o t h e a p p l i c a b l e 2 0 0 9 L i q u i d i t y P r o v i d e r , t h e T r u s t e e ,
t h e R e m a r k e t i n g A g e n t a n d t h e C o m m i s s i o n , p r o v i d e d t h a t o n s u c h C o n v e r s i o n D a t e t h e
C o m m i s s i o n s h a l l d e l i v e r t o t h e T r u s t e e a n O p i n i o n o f B o n d C o u n s e l s t a t i n g t h a t t h e C o n v e r s i o n
O H S W e s 1 : 2 6 0 6 9 2 4 4 7 . 6
2 1
1 0 4
is authorized and permitted under the Indenture and will not, in and of itself, adversely affect the
Tax -Exempt status of the interest on any 2009 Bonds of the affected Series.
ARTICLE XXII •
REDEMPTION AND PURCHASE OF 2009 BONDS
Section 22.01. Optional Redemption of 2009 Bonds.
(a) Optional Redemption of 2009 Bonds.
(1) Commercial Paper Rate Period. 2009 Bonds bearing interest at the
Commercial Paper Rate are subject to redemption, at the option of the Commission, in whole or
in part, on the day following the end of any Commercial Paper Rate Period, at a redemption price
equal to the principal amount thereof, plus accrued interest, if any, without premium.
(2) Daily Rate Period and Weekly Rate Period. 2009 Bonds bearing interest
at a Daily Rate or a Weekly Rate are subject to redemption, at the option of the Commission, in
whole or in part, in Authorized Denominations on any Business Day, at a redemption price equal
to the principal amount thereof, plus accrued interest, if any, without premium.
(3) Long -Term Rate Period. 2009 Bonds bearing interest at the Long -Term
Rate are subject to redemption, at the option of the Commission, in whole or in part, in
Authorized Denominations, on the day following the last day of any Long -Term Rate Period and
on such other dates as shall have been specified in the Conversion Notice with respect to the
Long -Term Rate Period, delivered with a Favorable Opinion of Bond Counsel, at a redemption
price equal to the principal amount thereof, plus accrued interest, if any, without premium.
(4) Fixed Rate Period. Unless the Commission obtains a Favorable Opinion
of Bond Counsel and changes redemption provisions as provided in Section 21.05(a)(v)(B), any
Series of 2009 Bonds bearing interest at a Fixed Rate is subject to redemption in whole or in part
(and if in part, in such order of maturity and Mandatory Sinking Account Payment dates as the
Commission shall specify and within a maturity or Mandatory Sinking Account Payment date by
lot or by such other method as the Trustee determines to be fair and reasonable and in
Authorized Denominations), at the option of the Commission, on any date, at such times and at
such redemption prices as follows:
(a) If, on the Fixed Rate Conversion Date, the remaining term of such
2009 Bonds is greater than eight years, then such 2009 Bonds will not be subject to
optional redemption until the first June 1 or December 1 (whichever is earlier) to follow
the eighth (8th) anniversary of the conversion of such 2009 Bonds to a Fixed Rate. On
such first June 1 or December 1, such 2009 Bonds will be subject to redemption at 102%
of the principal amount thereof, plus accrued interest, if any, to the date of redemption,
which redemption price will decline by one percent (1%) per annum on each succeeding
anniversary of such first June 1 or December 1 until reaching a redemption price of 100%
of the principal amount thereof, plus accrued interest, if any, to the date of redemption,
and thereafter at a redemption price of 100% of the principal amount thereof, plus
accrued interest, if any, to the date of redemption.
OHS West.260692447.6
22
•
•
105
"
"
"
( b ) I f , o n t h e F i x e d R a t e C o n v e r s i o n D a t e , t h e r e m a i n i n g t e r m o f s u c h
2 0 0 9 B o n d s i s l e s s t h a n e i g h t y e a r s , t h e n s u c h 2 0 0 9 B o n d s w i l l n o t b e s u b j e c t t o o p t i o n a l
r e d e m p t i o n f o l l o w i n g C o n v e r s i o n .
( b ) S e l e c t i o n o f B o n d s f o r O p t i o n a l R e d e m p t i o n .
( 1 ) 2 0 0 9 B o n d s . T h e C o m m i s s i o n s h a l l d e s i g n a t e w h i c h m a t u r i t i e s o f a n y
S e r i e s o f 2 0 0 9 B o n d s a r e t o b e c a l l e d f o r o p t i o n a l r e d e m p t i o n p u r s u a n t t o S e c t i o n 2 2 . 0 1 ( a ) ,
p r o v i d e d t h a t 2 0 0 9 L i q u i d i t y F a c i l i t y B o n d s o f s u c h S e r i e s s h a l l b e r e d e e m e d p r i o r t o a n y o t h e r
2 0 0 9 B o n d s o f s u c h S e r i e s . I f l e s s t h a n a l l 2 0 0 9 B o n d s o f a n y S e r i e s m a t u r i n g b y t h e i r t e r m s o n
a n y o n e d a t e a r e t o b e r e d e e m e d a t a n y o n e t i m e , t h e T r u s t e e s h a l l s e l e c t t h e 2 0 0 9 B o n d s o f s u c h
m a t u r i t y d a t e t o b e r e d e e m e d i n a n y m a n n e r t h a t i t d e e m s a p p r o p r i a t e a n d f a i r a n d s h a l l p r o m p t l y
n o t i f y t h e C o m m i s s i o n i n w r i t i n g o f t h e n u m b e r s o f t h e 2 0 0 9 B o n d s s o s e l e c t e d f o r r e d e m p t i o n .
F o r p u r p o s e s o f s u c h s e l e c t i o n , 2 0 0 9 B o n d s o f e a c h S e r i e s s h a l l b e d e e m e d t o b e c o m p o s e d o f
m u l t i p l e s o f m i n i m u m A u t h o r i z e d D e n o m i n a t i o n s a n d a n y s u c h m u l t i p l e m a y b e s e p a r a t e l y
r e d e e m e d . I n t h e e v e n t T e r m B o n d s a r e d e s i g n a t e d f o r r e d e m p t i o n , t h e C o m m i s s i o n m a y
d e s i g n a t e t h e M a n d a t o r y S i n k i n g A c c o u n t P a y m e n t s u n d e r S e c t i o n 2 2 . 0 2 ( a ) , o r p o r t i o n s t h e r e o f ,
t h a t a r e t o b e r e d u c e d a s a l l o c a t e d t o s u c h r e d e m p t i o n .
( c ) S u f f i c i e n t F u n d s R e q u i r e d f o r O p t i o n a l R e d e m p t i o n . A n y o p t i o n a l
r e d e m p t i o n o f 2 0 0 9 B o n d s a n d n o t i c e t h e r e o f m a y b e c o n d i t i o n a l a n d r e s c i n d e d a n d
c a n c e l l e d p u r s u a n t t o t h e p r o v i s i o n s o f S e c t i o n 4 . 0 2 i f f o r a n y r e a s o n o n t h e d a t e f i x e d f o r
r e d e m p t i o n m o n e y s a r e n o t a v a i l a b l e i n t h e R e d e m p t i o n F u n d o r o t h e r w i s e h e l d i n t r u s t f o r
s u c h p u r p o s e i n a n a m o u n t s u f f i c i e n t t o p a y i n f u l l o n s a i d d a t e t h e p r i n c i p a l o f , i n t e r e s t , a n d
a n y p r e m i u m d u e o n t h e 2 0 0 9 B o n d s c a l l e d f o r r e d e m p t i o n .
( d ) N o t i c e o f O p t i o n a l R e d e m p t i o n ; R e s c i s s i o n . A n y n o t i c e o f o p t i o n a l
r e d e m p t i o n o f t h e 2 0 0 9 B o n d s s h a l l b e d e l i v e r e d i n a c c o r d a n c e w i t h S e c t i o n 4 . 0 2 a n d m a y b e
r e s c i n d e d a s p r o v i d e d i n S e c t i o n 4 . 0 2 .
S e c t i o n 2 2 . 0 2 . M a n d a t o r y R e d e m p t i o n o f 2 0 0 9 B o n d s F r o m M a n d a t o r y S i n k i n g
A c c o u n t P a y m e n t s .
( a ) M a n d a t o r y R e d e m p t i o n o f 2 0 0 9 B o n d s . E x c e p t a s o t h e r w i s e p r o v i d e d i n
S e c t i o n 2 1 . 0 5 ( a ) ( v ) ( B ) , t h e 2 0 0 9 B o n d s o f e a c h S e r i e s a r e T e r m B o n d s a n d a r e s u b j e c t t o
m a n d a t o r y r e d e m p t i o n f r o m M a n d a t o r y S i n k i n g A c c o u n t P a y m e n t s f o r s u c h 2 0 0 9 B o n d s , o n
e a c h d a t e a M a n d a t o r y S i n k i n g A c c o u n t P a y m e n t f o r s u c h 2 0 0 9 B o n d s i s d u e , a n d i n t h e
p r i n c i p a l a m o u n t e q u a l t o t h e M a n d a t o r y S i n k i n g A c c o u n t P a y m e n t d u e o n S u c h d a t e a t a
R e d e m p t i o n P r i c e e q u a l t o t h e p r i n c i p a l a m o u n t t h e r e o f , p l u s a c c r u e d i n t e r e s t t o t h e r e d e m p t i o n
d a t e , w i t h o u t p r e m i u m .
O H S W e s t : 2 6 0 6 9 2 4 4 7 . 6
2 3
1 0 6
Mandatory Sinking Account Payments for 2009 Series A Bonds that are Term Bonds
shall be due in such amounts and on such dates as follows:
2009 Series A Bonds
Mandatory Redemption Mandatory
Sinking Sinking
Redemption Date Account Date Account
(June I) Payment (June 1) Payment
t Final Maturity
Mandatory Sinking Account Payments for 2009 Series B Bonds that are Term Bonds
shall be due in such amounts and on such dates as follows:
Redemption Date
(June I)
Final Maturity
OHS West:260692447.6
2009 Series B Bonds
Mandatory
Sinking
Account
Payment
24
Redemption
Date
(June 1)
Mandatory
Sinking
Account
Payment
•
•
107
"
M a n d a t o r y S i n k i n g A c c o u n t P a y m e n t s f o r 2 0 0 9 S e r i e s C B o n d s t h a t a r e T e r m B o n d s
s h a l l b e d u e i n s u c h a m o u n t s a n d o n s u c h d a t e s a s f o l l o w s :
R e d e m p t i o n D a t e
( J u n e 1 )
t
F i n a l M a t u r i t y
2 0 0 9 S e r i e s C B o n d s
M a n d a t o r y
S i n k i n g
A c c o u n t
P a y m e n t
R e d e m p t i o n
D a t e
( J u n e 1 )
M a n d a t o r y
S i n k i n g
A c c o u n t
P a y m e n t
( b ) S e l e c t i o n o f B o n d s f o r M a n d a t o r y S i n k i n g A c c o u n t R e d e m p t i o n . I f l e s s t h a n
a l l 2 0 0 9 B o n d s o f a n y S e r i e s m a t u r i n g b y t h e i r t e r m s o n a n y o n e d a t e a r e t o b e r e d e e m e d a t a n y
o n e t i m e w i t h M a n d a t o r y S i n k i n g A c c o u n t P a y m e n t s , t h e T r u s t e e s h a l l s e l e c t t h e 2 0 0 9 B o n d s o f
s u c h m a t u r i t y d a t e t o b e r e d e e m e d b y l o t i n a n y m a n n e r t h a t i t d e e m s a p p r o p r i a t e , p r o v i d e d t h a t
2 0 0 9 L i q u i d i t y F a c i l i t y B o n d s o f s u c h S e r i e s s h a l l b e r e d e e m e d p r i o r t o a n y o t h e r 2 0 0 9 B o n d s o f
s u c h S e r i e s , a n d t h e T r u s t e e s h a l l p r o m p t l y n o t i f y t h e C o m m i s s i o n i n w r i t i n g o f t h e n u m b e r s o f
t h e 2 0 0 9 B o n d s s o s e l e c t e d f o r r e d e m p t i o n . F o r p u r p o s e s o f s u c h s e l e c t i o n , 2 0 0 9 B o n d s o f e a c h
S e r i e s s h a l l b e d e e m e d t o b e c o m p o s e d o f m u l t i p l e s o f m i n i m u m A u t h o r i z e d D e n o m i n a t i o n s a n d
a n y s u c h m u l t i p l e m a y b e s e p a r a t e l y r e d e e m e d .
S e c t i o n 2 2 . 0 3 . P u r c h a s e I n L i e u o f R e d e m p t i o n . T h e C o m m i s s i o n r e s e r v e s t h e r i g h t a t
a l l t i m e s t o p u r c h a s e a n y o f i t s 2 0 0 9 B o n d s o n t h e o p e n m a r k e t . I n l i e u o f m a n d a t o r y
r e d e m p t i o n , t h e C o m m i s s i o n m a y s u r r e n d e r t o t h e T r u s t e e f o r c a n c e l l a t i o n 2 0 0 9 B o n d s
p u r c h a s e d o n t h e o p e n m a r k e t , a n d s u c h 2 0 0 9 B o n d s s h a l l b e c a n c e l l e d b y t h e T r u s t e e . I f a n y
2 0 0 9 B o n d s a r e s o c a n c e l l e d , t h e C o m m i s s i o n m a y d e s i g n a t e t h e M a n d a t o r y S i n k i n g A c c o u n t
P a y m e n t s o r p o r t i o n s t h e r e o f w i t h i n s u c h S e r i e s o f t h e 2 0 0 9 B o n d s s o p u r c h a s e d t h a t a r e t o b e
r e d u c e d a s a r e s u l t o f s u c h c a n c e l l a t i o n .
S e c t i o n 2 2 . 0 4 . H o l d e r ' s O p t i o n t o T e n d e r 2 0 0 9 B o n d s f o r P u r c h a s e .
( a ) D u r i n g a n y D a i l y R a t e P e r i o d , a n y 2 0 0 9 B o n d o r ( s u b j e c t t o s u b s e c t i o n ( c ) o f
t h i s S e c t i o n ) a p o r t i o n t h e r e o f , m a y b e t e n d e r e d f o r p u r c h a s e o n a n y B u s i n e s s D a y a t t h e
a p p l i c a b l e P u r c h a s e P r i c e , p a y a b l e i n i m m e d i a t e l y a v a i l a b l e f u n d s , u p o n ( A ) d e l i v e r y b y t h e
H o l d e r o r B e n e f i c i a l O w n e r o f s u c h 2 0 0 9 B o n d t o t h e R e m a r k e t i n g A g e n t a n d t o t h e T r u s t e e
a t i t s P r i n c i p a l O f f i c e o f a n i r r e v o c a b l e w r i t t e n n o t i c e o r n o t i c e b y E l e c t r o n i c M e a n s b y 1 1 : 0 0
a . m . ( N e w Y o r k C i t y t i m e ) o n t h e P u r c h a s e D a t e , w h i c h s t a t e s t h e p r i n c i p a l a m o u n t o f s u c h
2 0 0 9 B o n d t o b e t e n d e r e d f o r p u r c h a s e a n d t h e P u r c h a s e D a t e , a n d ( B ) d e l i v e r y o f s u c h 2 0 0 9
O H S W e s c 2 6 0 6 9 2 4 4 7 . 6
2 5
1 0 8
Bond to the Trustee on the Purchase Date in accordance with Section 22.06. The Trustee
shall keep a written record of the notice described in clause (A) of this subsection (a).
(b) Except as otherwise provided in Section 21.05(a)(iv)(F), during any Weekly
Rate Period, any 2009 Bond or (subject to subsection (c) of this Section) a portion thereof,
may be tendered for purchase on any Business Day at the applicable Purchase Price, payable
in accordance with Section 22.11 in immediately available funds, upon (A) delivery by the
Holder or Beneficial Owner of such 2009 Bond to the Remarketing Agent and to the Trustee
at its Principal Office of an irrevocable written notice or notice by Electronic Means by
5:00 p.m. (New York City time) on any Business Day at least seven (7) days prior to the
Purchase Date, which states the principal amount of such 2009 Bond to be tendered for
purchase and the Purchase Date, and (B) delivery of such 2009 Bond to the Trustee on the
Purchase Date in accordance with Section 22.06. The Trustee shall keep a written record of
the notice described in clause (A) of this subsection (b).
(c) If any 2009 Bond is to be purchased in part pursuant to subsection (a) or
subsection (b) of this Section, the amount so purchased and the amount not so purchased
must each be an Authorized Denomination.
(d) Any instrument delivered to the Trustee in accordance with this Section shall
be irrevocable with respect to the purchase for which such instrument was delivered and shall
be binding upon the Securities Depository and any subsequent Holder or Beneficial Owner of
the 2009 Bond to which it relates, including any 2009 Bond issued in exchange therefor or
upon the registration of transfer thereof, and as of the date of such instrument, the Holder or
Beneficial Owner of the 2009 Bonds specified therein shall not have any right to optionally
tender for purchase such 2009 Bonds prior to the date of purchase specified in such notice.
The Commission, the Remarketing Agent and the Trustee may conclusively assume that any
person (other than a Holder) providing notice of optional tender pursuant to subsection (a) or
subsection (b) of this Section is the Beneficial Owner of the 2009 Bond to which such notice
relates, and none of the Commission, the Remarketing Agent or the Trustee shall assume any
liability in accepting such notice from any person whom it reasonably believes to be a
Beneficial Owner of 2009 Bonds.
Section 22.05. Mandatory Tender of 2009 Bonds for Purchase.
(a) The 2009 Bonds shall be subject to mandatory tender for purchase at the
applicable Purchase Price, at the following times and upon the occurrence of any of the
events stated below:
(1) with respect to any Series of 2009 Bonds, on the Conversion Date for such
2009 Bonds to a new Interest Rate Determination Method specified in a Conversion Notice
(whether or not the proposed Conversion becomes effective on such date, unless converting from
a Long -Term Rate Period for which there is no Liquidity Facility and the proposed Conversion
does not occur, in which case the mandatory tender will be cancelled);
(2) with respect to 2009 Bonds bearing interest at a Daily Rate, a Weekly Rate
or a Commercial Paper Rate: (A) on the fifth (5th) Business Day preceding (i) the scheduled
OHS West:260692447.6
26
•
109
"
E x p i r a t i o n o f a 2 0 0 9 L i q u i d i t y F a c i l i t y o r ( i i ) t h e T e r m i n a t i o n o f a 2 0 0 9 L i q u i d i t y F a c i l i t y , a t t h e
e l e c t i o n o f t h e C o m m i s s i o n a s p e r m i t t e d b y s u c h 2 0 0 9 L i q u i d i t y F a c i l i t y ; a n d ( B ) o n t h e d a t e o f
t h e p r o v i s i o n o f a n A l t e m a t e L i q u i d i t y F a c i l i t y f o r s u c h 2 0 0 9 B o n d s p u r s u a n t t o S e c t i o n 2 2 . 1 4
a n d t h e r e s u l t a n t T e r m i n a t i o n o f t h e e x i s t i n g 2 0 0 9 L i q u i d i t y F a c i l i t y ; p r o v i d e d , h o w e v e r , t h a t ,
n o t w i t h s t a n d i n g a n y o t h e r p r o v i s i o n o f t h i s I n d e n t u r e t o t h e c o n t r a r y , n o m a n d a t o r y t e n d e r f o r
p u r c h a s e s h a l l b e r e q u i r e d p u r s u a n t t o t h i s s u b s e c t i o n i f a R a t i n g C o n f i r m a t i o n s h a l l b e d e l i v e r e d
b y e a c h R a t i n g A g e n c y t h e n r a t i n g t h e 2 0 0 9 B o n d s o n t h e d a t e o f t h e p r o v i s i o n o f t h e A l t e r n a t e
L i q u i d i t y F a c i l i t y p u r s u a n t t o S e c t i o n 2 2 . 1 4 a n d t h e r e s u l t a n t T e r m i n a t i o n o f t h e e x i s t i n g 2 0 0 9
L i q u i d i t y F a c i l i t y ;
( 3 ) w i t h r e s p e c t t o e a c h 2 0 0 9 B o n d b e a r i n g i n t e r e s t a t a C o m m e r c i a l P a p e r
R a t e , o n e a c h I n t e r e s t P a y m e n t D a t e i m m e d i a t e l y f o l l o w i n g e a c h C o m m e r c i a l P a p e r R a t e P e r i o d
f o r s u c h 2 0 0 9 B o n d ;
( 4 ) w i t h r e s p e c t t o e a c h 2 0 0 9 B o n d b e a r i n g i n t e r e s t a t a L o n g - T e r m R a t e , o n
t h e I n t e r e s t P a y m e n t D a t e i m m e d i a t e l y f o l l o w i n g e a c h L o n g - T e r m R a t e P e r i o d f o r s u c h 2 0 0 9
B o n d ; a n d
( 5 ) w i t h r e s p e c t t o 2 0 0 9 B o n d s b e a r i n g i n t e r e s t a t a D a i l y R a t e , a W e e k l y R a t e
o r a C o m m e r c i a l P a p e r R a t e , u p o n r e c e i p t b y t h e T r u s t e e o f w r i t t e n n o t i c e f r o m t h e 2 0 0 9
L i q u i d i t y P r o v i d e r f o r s u c h 2 0 0 9 B o n d s t h a t a n e v e n t o f d e f a u l t o r a n e v e n t o f t e r m i n a t i o n ( o t h e r
t h a n a n i m m e d i a t e t e r m i n a t i o n o r s u s p e n s i o n ) h a s o c c u r r e d u n d e r t h e r e l a t e d 2 0 0 9 L i q u i d i t y
F a c i l i t y w i t h t h e e f f e c t t h a t t h e o b l i g a t i o n s o f s u c h 2 0 0 9 L i q u i d i t y P r o v i d e r t o p u r c h a s e s u c h
2 0 0 9 B o n d s o r o t h e r w i s e p r o v i d e f o r t h e P u r c h a s e P r i c e o f s u c h 2 0 0 9 B o n d s u n d e r s u c h 2 0 0 9
L i q u i d i t y F a c i l i t y s h a l l t e r m i n a t e o n t h e d a t e s p e c i f i e d i n s u c h n o t i c e , i n w h i c h e v e n t s u c h 2 0 0 9
B o n d s s h a l l b e s u b j e c t t o p u r c h a s e o n a B u s i n e s s D a y s e l e c t e d b y t h e T r u s t e e w h i c h d a t e s h a l l b e
n o t m o r e t h a n f i v e ( 5 ) B u s i n e s s D a y s a f t e r r e c e i p t o f s u c h n o t i c e , b u t i n n o e v e n t l a t e r t h a n t h e
B u s i n e s s D a y p r e c e d i n g t h e t e r m i n a t i o n d a t e s p e c i f i e d i n t h e n o t i c e r e c e i v e d f r o m s u c h 2 0 0 9
L i q u i d i t y P r o v i d e r .
( b ) N o t i c e o f m a n d a t o r y t e n d e r f o r p u r c h a s e o n t h e C o n v e r s i o n D a t e s h a l l b e
g i v e n b y t h e T r u s t e e t o t h e H o l d e r s a s p r o v i d e d i n S e c t i o n 2 1 . 0 5 ( b ) ( i v ) .
( c ) T h e T r u s t e e s h a l l g i v e n o t i c e b y f i r s t c l a s s m a i l t o t h e H o l d e r s o f a f f e c t e d
2 0 0 9 B o n d s o f e a c h T e r m i n a t i o n o f a 2 0 0 9 L i q u i d i t y F a c i l i t y a n d e a c h E x p i r a t i o n o f a 2 0 0 9
L i q u i d i t y F a c i l i t y m a k i n g 2 0 0 9 B o n d s s u b j e c t t o m a n d a t o r y t e n d e r p u r s u a n t t o
S e c t i o n 2 2 . 0 5 ( a ) ( 2 ) , w h i c h n o t i c e s h a l l ( i ) s t a t e t h e d a t e o f s u c h T e r m i n a t i o n , s u b s t i t u t i o n o r
E x p i r a t i o n ; ( i i ) s t a t e t h a t u n l e s s a R a t i n g C o n f i r m a t i o n i s r e c e i v e d w i t h r e s p e c t t o t h e
s u b s t i t u t i o n ( i n w h i c h e v e n t n o m a n d a t o r y t e n d e r f o r p u r c h a s e s h a l l o c c u r ) , s u c h 2 0 0 9 B o n d s
s h a l l b e s u b j e c t t o m a n d a t o r y t e n d e r f o r p u r c h a s e o n t h e s p e c i f i e d P u r c h a s e D a t e a t t h e
a p p l i c a b l e P u r c h a s e P r i c e ( w h i c h s h a l l b e s p e c i f i e d i n s u c h n o t i c e ) ; a n d ( i i i ) b e m a i l e d b y t h e
T r u s t e e n o t l a t e r t h a n t h e f i f t e e n t h ( 1 5 t h ) d a y p r i o r t o s u c h T e r m i n a t i o n , s u b s t i t u t i o n o r
e x p i r a t i o n .
( d ) N o n o t i c e n e e d b e g i v e n t o t h e H o l d e r s o f a n y 2 0 0 9 B o n d b e a r i n g i n t e r e s t a t a
C o m m e r c i a l P a p e r R a t e o f t h e m a n d a t o r y t e n d e r f o r p u r c h a s e o f s u c h 2 0 0 9 B o n d o n a n
I n t e r e s t P a y m e n t D a t e f o r s u c h 2 0 0 9 B o n d .
O H S W e s t 2 6 0 6 9 2 4 4 7 , 6
2 7
1 1 0
(e) Upon the expiration of the then current Long -Term Rate Period for a Series of
2009 Bonds, the Trustee shall give notice by first class mail to the Holder of such 2009
Bonds at the address shown on the bond registration books maintained by the Trustee not
later than the fifteenth (15th) day prior to the date on which such 2009 Bonds are subject to
mandatory tender for purchase pursuant to Section 22.05(a)(4), which notice shall state that
such 2009 Bonds are subject to mandatory tender on the specified Purchase Date at the
applicable Purchase Price (which shall be specified in such notice).
(f) The Trustee shall give notice by first class mail within two (2) Business Days
of receipt of a notice from a 2009 Liquidity Provider pursuant to Section 22.05(a)(5), to the
Holders of the affected 2009 Bonds at their addresses shown on the bond registration books
maintained by the Trustee which notice shall: (1) state such 2009 Bonds are subject to
mandatory tender for purchase pursuant to Section 22.05(a)(5) at the applicable Purchase
Price (which shall be specified in such notice); and (2) state the Purchase Date.
Section 22.06. Delivery of Tendered 2009 Bonds. With respect to any 2009 Bond that
is registered in book -entry form with a Securities Depository, delivery of such 2009 Bond to the
Trustee in connection with any optional or mandatory tender for purchase pursuant to
Section 22.04 or 22.05 shall be effected by the making of, or the irrevocable authorization to
make, appropriate entries on the books of the Securities Depository for such 2009 Bond or any
Participant of such Securities Depository to reflect the transfer of the beneficial ownership
interest in such 2009 Bond to the account of the Trustee, or to the account of a Participant of
such Securities Depository acting on behalf of the Trustee. With respect to any 2009 Bond that
is not registered in book -entry form with a Securities Depository, delivery of such 2009 Bond to
the Trustee in connection with any optional or mandatory tender for purchase pursuant to
Section 22.04 or 22.05 shall be effected by physical delivery of such 2009 Bond to the Trustee at
its Principal Office, by 1:00 p.m. (New York City time) on the Purchase Date, accompanied by
an instrument of transfer thereof, in a form satisfactory to the Trustee, executed in blank by the
Holder thereof with the signature of such Holder guaranteed in accordance with the guidelines
set forth by one of the nationally recognized medallion signature programs.
Section 22.07. 2009 Bonds Deemed Purchased.
(a) If moneys sufficient to pay the Purchase Price of 2009 Bonds to be purchased
pursuant to Section 22.04 or 22.05 shall be held by the Trustee on the applicable Purchase
Date, such 2009 Bonds shall be deemed to have been purchased for all purposes of the
Indenture, irrespective of whether or not such 2009 Bonds shall have been delivered to the
Trustee or transferred on the books of a Securities Depository for such 2009 Bonds, and
neither the former Holder or Beneficial Owner of such 2009 Bonds nor any other person
shall have any claim thereon, under the Indenture or otherwise, for any amount other than the
Purchase Price thereof.
(b) In the event of non -delivery of any 2009 Bond to be purchased pursuant to
Section 22.04 or 22.05, the Trustee shall segregate and hold uninvested the moneys for the
Purchase Price of such 2009 Bond in trust, without liability for interest thereon, for the
benefit of the former Holders or Beneficial Owners of such 2009 Bond, who shall, except as
provided in the following sentence, thereafter be restricted exclusively to such moneys for
OHS Wesc260692447.6
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"
t h e s a t i s f a c t i o n o f a n y c l a i m f o r t h e P u r c h a s e P r i c e o f s u c h 2 0 0 9 B o n d . A n y m o n e y s t h a t t h e
T r u s t e e s h a l l s e g r e g a t e a n d h o l d i n t r u s t f o r t h e p a y m e n t o f t h e P u r c h a s e P r i c e o f a n y 2 0 0 9
B o n d a n d r e m a i n i n g u n c l a i m e d f o r t w o ( 2 ) y e a r s a f t e r t h e d a t e o f p u r c h a s e s h a l l , s u b j e c t t o
s a t i s f a c t i o n o f a l l a m o u n t s t h e n d u e a n d p a y a b l e t o t h e 2 0 0 9 L i q u i d i t y P r o v i d e r ( o t h e r t h a n
2 0 0 9 L i q u i d i t y F a c i l i t y B o n d s ) , b e p a i d a u t o m a t i c a l l y t o t h e C o m m i s s i o n . A f t e r t h e p a y m e n t
o f s u c h u n c l a i m e d m o n e y s t o t h e C o m m i s s i o n , t h e f o r m e r H o l d e r o r B e n e f i c i a l O w n e r o f
s u c h 2 0 0 9 B o n d s h a l l l o o k o n l y t o t h e C o m m i s s i o n f o r t h e p a y m e n t t h e r e o f .
S e c t i o n 2 2 . 0 8 . D e p o s i t o f 2 0 0 9 B o n d s . T h e T r u s t e e a g r e e s t o a c c e p t a n d h o l d a l l 2 0 0 9
B o n d s d e l i v e r e d t o i t p u r s u a n t t o S e c t i o n 2 2 . 0 4 o r 2 2 . 0 5 i n t r u s t f o r t h e b e n e f i t o f t h e r e s p e c t i v e
H o l d e r s o r B e n e f i c i a l O w n e r s w h i c h s h a l l h a v e s o d e l i v e r e d s u c h 2 0 0 9 B o n d s u n t i l t h e P u r c h a s e
P r i c e o f s u c h 2 0 0 9 B o n d s s h a l l h a v e b e e n d e l i v e r e d t o o r f o r t h e a c c o u n t o f o r t o t h e o r d e r o f
s u c h H o l d e r s o r B e n e f i c i a l O w n e r s p u r s u a n t t o S e c t i o n 2 2 . 1 1 . A n y 2 0 0 9 B o n d s r e g i s t e r e d f o r
t r a n s f e r t o n e w p u r c h a s e r s a n d d e l i v e r e d t o t h e T r u s t e e a s d e s c r i b e d i n S e c t i o n 2 2 . 1 2 s h a l l b e
h e l d i n t r u s t b y t h e T r u s t e e f o r t h e b e n e f i t o f s u c h n e w p u r c h a s e r s u n t i l d e l i v e r y t o s u c h n e w
p u r c h a s e r s .
S e c t i o n 2 2 . 0 9 . R e m a r k e t i n g o f T e n d e r e d 2 0 0 9 B o n d s .
( a ) D a i l y P u t o r C o m m e r c i a l P a p e r T e n d e r B o n d s .
( i ) N o t l a t e r t h a n 1 1 : 1 5 a . m . ( N e w Y o r k C i t y t i m e ) o n e a c h B u s i n e s s D a y o n
w h i c h t h e T r u s t e e r e c e i v e s a n o t i c e f r o m a H o l d e r o r B e n e f i c i a l O w n e r o f a 2 0 0 9 B o n d t o b e
t e n d e r e d p u r s u a n t t o S e c t i o n 2 2 . 0 4 ( a ) ( t h e " D a i l y P u t B o n d s " ) , a n d o n e a c h d a y a n y 2 0 0 9 B o n d s
b e a r i n g i n t e r e s t a t a C o m m e r c i a l P a p e r R a t e a r e s u b j e c t t o m a n d a t o r y t e n d e r p u r s u a n t t o
S e c t i o n 2 2 . 0 5 ( a ) ( 3 ) ( t h e " C o m m e r c i a l P a p e r T e n d e r B o n d s " ) , t h e T r u s t e e s h a l l g i v e n o t i c e b y
E l e c t r o n i c M e a n s t o t h e R e m a r k e t i n g A g e n t a n d t h e C o m m i s s i o n , s p e c i f y i n g t h e p r i n c i p a l
a m o u n t o f 2 0 0 9 B o n d s f o r w h i c h i t h a s r e c e i v e d s u c h n o t i c e a n d t h e n a m e s o f t h e H o l d e r o r
H o l d e r s t h e r e o f . T h e R e m a r k e t i n g A g e n t s h a l l t h e r e u p o n o f f e r f o r s a l e a n d u s e i t s b e s t e f f o r t s t o
f i n d p u r c h a s e r s f o r s u c h D a i l y P u t B o n d s o r C o m m e r c i a l P a p e r T e n d e r B o n d s , o t h e r t h a n 2 0 0 9
L i q u i d i t y F a c i l i t y B o n d s , w h i c h s h a l l b e r e m a r k e t e d p u r s u a n t t o S e c t i o n 2 2 . 1 3 .
( i i ) N o t l a t e r t h a n 1 1 : 3 0 a . m . ( N e w Y o r k C i t y t i m e ) o n t h e P u r c h a s e D a t e
d e s c r i b e d i n s u b p a r a g r a p h ( i ) a b o v e , t h e T r u s t e e s h a l l g i v e n o t i c e b y E l e c t r o n i c M e a n s t o t h e
R e m a r k e t i n g A g e n t a n d t h e C o m m i s s i o n o f t h e a c c r u e d a m o u n t o f i n t e r e s t p a y a b l e w i t h r e s p e c t
t o t h e D a i l y P u t B o n d s o r C o m m e r c i a l P a p e r T e n d e r B o n d s , a s a p p l i c a b l e , a s o f s u c h P u r c h a s e
D a t e a n d c o n f i r m i n g t h e a g g r e g a t e p r i n c i p a l a m o u n t o f t h e D a i l y P u t B o n d s o r C o m m e r c i a l
P a p e r T e n d e r B o n d s .
( i i i ) N o t l a t e r t h a n 1 2 : 0 0 n o o n ( N e w Y o r k C i t y t i m e ) o n a n y P u r c h a s e D a t e f o r
D a i l y P u t B o n d s o r C o m m e r c i a l P a p e r T e n d e r B o n d s , t h e R e m a r k e t i n g A g e n t s h a l l g i v e n o t i c e
b y E l e c t r o n i c M e a n s t o t h e C o m m i s s i o n a n d t h e T r u s t e e o f t h e p r i n c i p a l a m o u n t o f a n y D a i l y P u t
B o n d s o r C o m m e r c i a l P a p e r T e n d e r B o n d s , a s a p p l i c a b l e , w h i c h h a v e n o t b e e n r e m a r k e t e d i n
a c c o r d a n c e w i t h t h e a p p l i c a b l e R e m a r k e t i n g A g r e e m e n t a n d i t s c o m m i t m e n t t o d e l i v e r f u n d s
f r o m t h e D a i l y P u t B o n d s o r C o m m e r c i a l P a p e r T e n d e r B o n d s t h a t h a v e b e e n r e m a r k e t e d t o t h e
T r u s t e e b y 2 : 0 0 p . m . ( N e w Y o r k C i t y t i m e ) o n s u c h d a y p u r s u a n t t o S e c t i o n 2 2 . 1 0 .
O H S W e s t 2 6 0 6 9 2 4 4 7 . 6
2 9
1 1 2
(iv) If a Remarketing Agent's notice pursuant to subparagraph (iii) above
indicates that such Remarketing Agent has on hand less remarketing proceeds than are needed to
purchase all the Daily Put Bonds or Commercial Paper Tender Bonds to be purchased on any
Purchase Date, the Trustee shall demand payment under the applicable 2009 Liquidity Facility
then in effect with respect to the tendered 2009 Bonds in sufficient time (as set forth by the terms
of the 2009 Liquidity Facility) so as to provide by 2:30 p.m. (New York City time) on such
Purchase Date an amount sufficient, together with the remarketing proceeds to be available for
such purchase, calculated solely on the basis of the notice given by the Remarketing Agent
pursuant to subparagraph (iii) above, to pay the Purchase Price of the Daily Put Bonds or
Commercial Paper Tender Bonds, as applicable. The Trustee shall immediately after such
demand for payment give notice by Electronic Means to the Commission of the amount, if any,
of such demand.
(b) Weekly Put Bonds.
(i) Not later than 10:30 a.m. (New York City time) on each Business Day
succeeding a day on which the Trustee receives a notice from a Holder or Beneficial Owner of
2009 Bonds to be tendered pursuant to Section 22.04(b) (the "Weekly Put Bonds"), the Trustee
shall give notice by Electronic Means to the Remarketing Agent and the Commission, specifying
the principal amount of 2009 Bonds for which it has received such notice, the names of the
Holder or Holders thereof and the Purchase Date. The Remarketing Agent shall thereupon offer
for sale and use its best efforts to find purchasers for such Weekly Put Bonds, other than 2009
Liquidity Facility Bonds, which shall be remarketed pursuant to Section 22.13.
(ii) Not later than 11:00 a.m. (New York City time) on the Business Day
immediately preceding the Purchase Date described in subparagraph (i) above, the Trustee shall
give notice by Electronic Means to the Remarketing Agent and the Commission of the accrued
amount of interest payable with respect to the Weekly Put Bonds as of such Purchase Date and
confirming the aggregate principal amount of the Weekly Put Bonds.
(iii) Not later than 11:30 a.m. (New York City time) on any Purchase Date for
Weekly Put Bonds, the Remarketing Agent shall give notice by Electronic Means to the
Commission and the Trustee of the principal amount of Weekly Put Bonds that have not been
remarketed in accordance with the applicable Remarketing Agreement and its commitment to
deliver funds from the Weekly Put Bonds that have been remarketed to the Trustee by 2:00 p.m.
(New York City time) on the Purchase Date pursuant to Section 22.10.
(iv) If a Remarketing Agent's notice pursuant to subparagraph (iii) above
indicates that such Remarketing Agent has on hand less remarketing proceeds than are needed to
purchase all the Weekly Put Bonds to be purchased on any Purchase Date, the Trustee shall
demand payment under the applicable 2009 Liquidity Facility then in effect with respect to the
Weekly Put Bonds in sufficient time (as set forth by the terms of the 2009 Liquidity Facility) so
as to provide by 2:30 p.m. (New York City time) on such Purchase Date an amount sufficient,
together with the remarketing proceeds to be available for such purchase, calculated solely on the
basis of the notice given by the Remarketing Agent pursuant to subparagraph (iii) above, to pay
the Purchase Price of the Weekly Put Bonds. The Trustee shall immediately after such demand
OHS West:260692447.6
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"
f o r p a y m e n t g i v e n o t i c e b y E l e c t r o n i c M e a n s t o t h e C o m m i s s i o n o f t h e a m o u n t , i f a n y , o f s u c h
d e m a n d .
( c ) M a n d a t o r y T e n d e r B o n d s .
( i ) N o t l a t e r t h a n 9 : 3 0 a . m . ( N e w Y o r k C i t y t i m e ) o n e a c h P u r c h a s e D a t e
o c c u r r i n g p u r s u a n t t o S e c t i o n 2 2 . 0 5 w i t h t h e e x c e p t i o n o f s u b s e c t i o n 2 2 . 0 5 ( a ) ( 3 ) , t h e T r u s t e e
s h a l l g i v e n o t i c e b y E l e c t r o n i c M e a n s t o t h e R e m a r k e t i n g A g e n t a n d t h e C o m m i s s i o n s p e c i f y i n g
t h e p r i n c i p a l a m o u n t o f a l l O u t s t a n d i n g 2 0 0 9 B o n d s t h a t a r e s u b j e c t t o m a n d a t o r y t e n d e r ( t h e
" M a n d a t o r y T e n d e r B o n d s " ) o n s u c h P u r c h a s e D a t e p u r s u a n t t o a n y s u b s e c t i o n o f S e c t i o n 2 2 . 0 5
e x c e p t s u b s e c t i o n 2 2 . 0 5 ( a ) ( 3 ) a n d t h e n a m e s o f t h e r e g i s t e r e d H o l d e r o r H o l d e r s t h e r e o f . T h e
R e m a r k e t i n g A g e n t s h a l l t h e r e u p o n o f f e r f o r s a l e a n d u s e i t s b e s t e f f o r t s t o f i n d p u r c h a s e r s f o r
s u c h M a n d a t o r y T e n d e r B o n d s ( i f t h e r e i s s t i l l a n o b l i g a t i o n t o r e m a r k e t ) , o t h e r t h a n 2 0 0 9
L i q u i d i t y F a c i l i t y B o n d s , w h i c h s h a l l b e r e m a r k e t e d p u r s u a n t t o S e c t i o n 2 2 . 1 3 .
( i i ) N o t l a t e r t h a n 1 0 : 0 0 a . m . ( N e w Y o r k C i t y t i m e ) o n e a c h P u r c h a s e D a t e
d e s c r i b e d i n s u b p a r a g r a p h ( i ) a b o v e , t h e T r u s t e e s h a l l g i v e n o t i c e b y E l e c t r o n i c M e a n s t o t h e
R e m a r k e t i n g A g e n t a n d t h e C o m m i s s i o n o f t h e a c c r u e d a m o u n t o f i n t e r e s t p a y a b l e w i t h r e s p e c t
t o t h e M a n d a t o r y T e n d e r B o n d s a s o f t h e P u r c h a s e D a t e a n d c o n f i r m i n g t h e a g g r e g a t e p r i n c i p a l
a m o u n t o f t h e M a n d a t o r y T e n d e r B o n d s .
( i i i ) N o t l a t e r t h a n 1 1 : 3 0 a . m . ( N e w Y o r k C i t y t i m e ) o n a n y P u r c h a s e D a t e
w i t h r e s p e c t t o M a n d a t o r y T e n d e r B o n d s , t h e R e m a r k e t i n g A g e n t s h a l l g i v e n o t i c e b y E l e c t r o n i c
M e a n s t o t h e T r u s t e e a n d t h e C o m m i s s i o n o f t h e p r i n c i p a l a m o u n t o f M a n d a t o r y T e n d e r B o n d s
t h a t h a v e n o t b e e n r e m a r k e t e d i n a c c o r d a n c e w i t h t h e R e m a r k e t i n g A g r e e m e n t a n d i t s w r i t t e n
c o m m i t m e n t t o d e l i v e r f u n d s f r o m t h e M a n d a t o r y T e n d e r B o n d s t h a t h a v e b e e n r e m a r k e t e d t o
t h e T r u s t e e b y 2 : 0 0 p . m . ( N e w Y o r k C i t y t i m e ) o n t h e P u r c h a s e D a t e p u r s u a n t t o S e c t i o n 2 2 . 1 0 .
( i v ) I f a R e m a r k e t i n g A g e n t ' s n o t i c e p u r s u a n t t o s u b p a r a g r a p h ( i i i ) a b o v e
i n d i c a t e s t h a t s u c h R e m a r k e t i n g A g e n t h a s o n h a n d l e s s r e m a r k e t i n g p r o c e e d s t h a n a r e n e e d e d t o
p u r c h a s e a l l t h e M a n d a t o r y T e n d e r B o n d s t o b e p u r c h a s e d o n s u c h P u r c h a s e D a t e , t h e T r u s t e e
s h a l l d e m a n d p a y m e n t u n d e r t h e a p p l i c a b l e 2 0 0 9 L i q u i d i t y F a c i l i t y t h e n i n e f f e c t w i t h r e s p e c t t o
t h e M a n d a t o r y T e n d e r B o n d s i n s u f f i c i e n t t i m e ( a s s e t f o r t h b y t h e t e r m s o f t h e 2 0 0 9 L i q u i d i t y
F a c i l i t y ) s o a s t o p r o v i d e b y 2 : 3 0 p . m . ( N e w Y o r k C i t y t i m e ) o n s u c h P u r c h a s e D a t e a n a m o u n t
s u f f i c i e n t , t o g e t h e r w i t h t h e r e m a r k e t i n g p r o c e e d s t o b e a v a i l a b l e f o r s u c h p u r c h a s e , c a l c u l a t e d
s o l e l y o n t h e b a s i s o f t h e n o t i c e g i v e n b y t h e R e m a r k e t i n g A g e n t p u r s u a n t t o s u b p a r a g r a p h ( i i i )
a b o v e , t o p a y t h e P u r c h a s e P r i c e o f t h e M a n d a t o r y T e n d e r B o n d s . T h e T r u s t e e s h a l l
i m m e d i a t e l y a f t e r s u c h d e m a n d f o r p a y m e n t g i v e n o t i c e t o t h e C o m m i s s i o n o f t h e a m o u n t , i f
a n y , o f s u c h d e m a n d .
( d ) O p t i o n a l C o m m i s s i o n D e p o s i t . I f a R e m a r k e t i n g A g e n t ' s n o t i c e p u r s u a n t t o
s u b p a r a g r a p h ( a ) ( i i i ) , ( b ) ( i i i ) o r ( c ) ( i i i ) a b o v e i n d i c a t e s t h a t s u c h R e m a r k e t i n g A g e n t h a s
r e m a r k e t e d l e s s t h a n a l l t h e D a i l y P u t B o n d s , C o m m e r c i a l P a p e r T e n d e r B o n d s , W e e k l y P u t
B o n d s , o r M a n d a t o r y T e n d e r B o n d s t o b e p u r c h a s e d o n a n y P u r c h a s e D a t e a n d t h e T r u s t e e
d o e s n o t r e c e i v e s u f f i c i e n t f u n d s f r o m , o r h a s r e c e i v e d n o t i c e f r o m a 2 0 0 9 L i q u i d i t y P r o v i d e r
t h a t i t w i l l n o t p r o v i d e s u f f i c i e n t f u n d s f r o m , d r a w s o n t h e a p p l i c a b l e 2 0 0 9 L i q u i d i t y F a c i l i t y
t o p a y t h e P u r c h a s e P r i c e o f a l l s u c h 2 0 0 9 B o n d s t h a t h a v e n o t b e e n r e m a r k e t e d b y 2 : 0 0 p . m .
O H S W e s t : 2 6 0 6 9 2 4 4 7 . 6
3 1
1 1 4
(New York City time) on the Purchase Date, the Trustee shall immediately (but in no event
later than 2:30 p.m. (New York City time)) give notice by Electronic Means to the
Commission specifying the principal amount and the Purchase Price of such 2009 Bonds for
which moneys will not be available in the 2009 Bonds Purchase Fund and requesting the
Commission to deposit with the Trustee as soon as possible on such Purchase Date,
preferably by 3:00 p.m. (New York City time), an amount sufficient to pay that portion of the
Purchase Price for which moneys will not be available in the 2009 Bonds Purchase Fund,
such notice to be confirmed immediately by Electronic Means to the Commission. Such
deposit by the Commission shall be at the sole option of the Commission.
(e) Limitation. If a 2009 Liquidity Facility is in effect with respect to a Series of
2009 Bonds, the Remarketing Agent with respect to such Series of 2009 Bonds shall not
remarket any tendered 2009 Bonds to the Commission or any affiliate of the Commission.
Each Remarketing Agent shall remarket the 2009 Bonds, as provided herein, at not less than
the Purchase Price thereof, except for 2009 Liquidity Facility Bonds, which shall be
remarketed pursuant to Section 22.13.
Section 22.10. Deposits into Accounts in the 2009 Bonds Purchase Fund.
(a) The terms of any sale by a Remarketing Agent of any 2009 Bond tendered or
deemed tendered for purchase pursuant to Section 22.04 or 22.05 shall provide for the
payment of the Purchase Price for such tendered or deemed tendered 2009 Bond by such
Remarketing Agent to the Trustee for deposit in the 2009 Remarketing Account of the 2009
Bonds Purchase Fund in immediately available funds at or before 2:00 p.m. (New York City
time) on the Purchase Date. Each Remarketing Agent shall cause to be paid to the Trustee on
each Purchase Date for tendered or deemed tendered 2009 Bonds all amounts representing
proceeds of the remarketing of such 2009 Bonds, based upon the notice given by such
Remarketing Agent pursuant to Section 22.09(a)(iii), 22.09(b)(iii), 22.09(c)(iii), as the case
may be. All such amounts shall be deposited in the 2009 Remarketing Account.
(b) The Trustee shall deposit in the 2009 Liquidity Facility Purchase Account all
amounts received under a 2009 Liquidity Facility pursuant to Section 22.09(a)(iv),
22.09(b)(iv) or 22.09(c)(iv), as the case may be, and related to the 2009 Bonds.
(c) Upon receipt of any notice from the Trustee pursuant to Section 22.09(d) that
insufficient funds will be on deposit in the 2009 Bonds Purchase Fund to pay the full
Purchase Price of all 2009 Bonds to be purchased on the Purchase Date, the Commission
shall, at its sole option, deliver or cause to be delivered to the Trustee immediately available
funds in an amount equal to such deficiency prior to 3:00 p.m. (New York City time) on the
Purchase Date. All such funds shall be deposited in the 2009 Commission Account.
(d) All funds received from the Commission pursuant to Section 22.09(d) shall be
deposited in the 2009 Commission Account.
(e) The Trustee shall hold amounts in the 2009 Bonds Purchase Fund uninvested
and separate from all other funds and accounts.
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Section 22.11. Disbursements from the 2009 Bonds Purchase Fund.
(a) Application of Moneys. Moneys in the 2009 Bonds Purchase Fund (other
than the proceeds of any remarketing of 2009 Liquidity Facility Bonds, which shall be paid
to the 2009 Liquidity Provider on the remarketing date) shall be applied at or before
3:00 p.m. (New York City time) to the purchase of 2009 Bonds as provided herein by the
Trustee, on each Purchase Date, as follows:
First Moneys in the 2009 Remarketing Account representing proceeds of the
remarketing of 2009 Bonds of a Series shall be used by the Trustee on any Purchase Date to
purchase 2009 Bonds of such Series tendered or deemed tendered for purchase pursuant to
Section 22.04 or 22.05 at the Purchase Price thereof.
Second — In the event such moneys in the 2009 Remarketing Account on the
Purchase Date are insufficient to purchase all 2009 Bonds of such Series, moneys in the 2009
Liquidity Facility Purchase Account on such Purchase Date shall be used by the Trustee at that
time to purchase such remaining 2009 Bonds of such Series at the Purchase Price thereof.
Third — If the amount of money in the 2009 Remarketing Account and 2009
Liquidity Facility Purchase Account on the Purchase Date is insufficient to pay in full the
Purchase Price of all 2009 Bonds of such Series tendered or deemed tendered for purchase
pursuant to Section 22.04 or 22.05 on such Purchase Date, moneys with respect to such Series in
the 2009 Commission Account on such Purchase Date, if any, shall be used by the Trustee at that
time to purchase such remaining 2009 Bonds of such Series at the Purchase Price thereof.
Notwithstanding anything to the contrary in this Section, if the 2009 Bonds tendered or
deemed tendered for purchase pursuant to Section 22.04 or 22.05 are registered in book -entry
form, payment of the Purchase Price of such 2009 Bonds shall be made in accordance with the
rules and procedures of the Securities Depository.
(b) Nondeliveries. The Trustee shall, as to any 2009 Bonds that are not registered
in book -entry form and that have not been delivered to it as required by Section 22.06, (i)
notify the Remarketing Agent in writing of such nondelivery and (ii) place a stop transfer
against an appropriate amount of 2009 Bonds registered in the name of the Holder of such
2009 Bonds on the bond registration books maintained by the Trustee. The Trustee shall
place and maintain such stop transfer commencing with the lowest serial number 2009 Bond
registered in the name of such Holder until stop transfers have been placed against an
appropriate amount of 2009 Bonds until the appropriate 2009 Bonds are delivered to the
Trustee as required by Section 22.06. Upon such delivery, the Trustee shall make any
necessary adjustments to such bond registration books.
(c) Prior Commission Purchase. Notwithstanding anything contained herein to
the contrary, while any 2009 Liquidity Facility is in effect with respect to a Series of 2009
Bonds, the Trustee shall, at the request of the Commission, use funds with respect to such
Series on deposit in the 2009 Commission Account prior to funds in the 2009 Liquidity
Facility Purchase Account to pay any portion of the Purchase Price of the tendered 2009
Bonds of such Series. In addition, such 2009 Bonds purchased with funds from the 2009
OHS West:260692447.6
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116
Liquidity Facility Purchase Account may be purchased from the 2009 Liquidity Provider by
the Commission.
(d) Insufficient Funds. If sufficient funds are not available for the purchase of all
2009 Bonds of a Series tendered or deemed tendered and required to be purchased on any
Purchase Date, all 2009 Bonds of such Series shall bear interest at the lesser of the SIFMA
Swap Index plus three percent (3%) and the Maximum Interest Rate from the date of such
failed purchase until all such 2009 Bonds are purchased as required in accordance with this
Indenture, and all tendered 2009 Bonds of such Series shall be returned to their respective
Holders. Notwithstanding any other provision of this Indenture, such failed purchase and
return shall not constitute an Event of Default. Thereafter, the Trustee shall continue to take
all such action available to it to obtain remarketing proceeds from the Remarketing Agent
and sufficient other funds from the Liquidity Provider, if any, for such 2009 Bonds.
Section 22.12. Delivery of 2009 Bonds.
(a) If the 2009 Bonds are not registered in book -entry form, a principal amount of
2009 Bonds equal to the amount of 2009 Bonds successfully remarketed by each
Remarketing Agent shall be delivered to the Trustee for registration or transfer to such
persons as shall be designated by the Remarketing Agent. Such 2009 Bonds shall be held
available at the office of the Trustee and shall be picked up at a location designated by the
Trustee to the applicable Remarketing Agent at or after 1:00 p.m. (New York City time) on
the Purchase Date against delivery of funds for deposit into the 2009 Remarketing Account
of the 2009 Bonds Purchase Fund equal to the Purchase Price of the 2009 Bonds that have
been remarketed. If the 2009 Bonds are registered in book -entry form, transfer of ownership
of the remarketed 2009 Bonds shall be effected in accordance with the procedures of the
Securities Depository against delivery of funds for deposit into the 2009 Remarketing
Account of the 2009 Bonds Purchase Fund equal to the Purchase Price of the 2009 Bonds
that have been remarketed.
(b) Any 2009 Bonds purchased with funds in any 2009 Liquidity Facility
Purchase Account of the 2009 Bonds Purchase Fund shall be delivered and held in
accordance with Section 22.13. Any 2009 Bonds purchased with funds in any 2009
Commission Account of the 2009 Bonds Purchase Fund shall be delivered and held in
accordance with the instructions of the Commission furnished to the Trustee. Such 2009
Bonds shall be held available for registration of transfer and delivery by the Trustee in such
manner as may be agreed between the Trustee and the 2009 Liquidity Provider or the
Commission, as the case may be.
Section 22.13. 2009 Liquidity Facilities; Liquidity Facility Bonds.
(a) Unless all the Outstanding 2009 Bonds of any Series are 2009 Liquidity
Facility Bonds or are in a Long -Term Rate Period or a Fixed Rate Period, the Commission
shall provide, or cause to be provided, to the Trustee a 2009 Liquidity Facility for such
Series. The Commission shall not reduce the amount of a 2009 Liquidity Facility or permit a
substitution of a 2009 Liquidity Provider thereunder without obtaining a Rating Confirmation
with respect to such action unless such action is considered a substitution of a 2009 Liquidity
OHS West260692447.6
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"
F a c i l i t y s u b j e c t i n g t h e 2 0 0 9 B o n d s a f f e c t e d t h e r e b y t o m a n d a t o r y p u r c h a s e p u r s u a n t t o
S e c t i o n 2 2 . 0 5 ( a ) ( 2 ) . T h e C o m m i s s i o n s h a l l h a v e t h e r i g h t a t a n y t i m e t o p r o v i d e , p u r s u a n t t o
S e c t i o n 2 2 . 1 4 , a n A l t e r n a t e L i q u i d i t y F a c i l i t y f o r a n y 2 0 0 9 L i q u i d i t y F a c i l i t y t h e n i n e f f e c t .
I f t h e r e s h a l l h a v e b e e n d e l i v e r e d t o t h e T r u s t e e ( i ) a n A l t e r n a t e L i q u i d i t y F a c i l i t y m e e t i n g
t h e r e q u i r e m e n t s o f S e c t i o n 2 2 . 1 4 a n d ( i i ) t h e o p i n i o n s a n d d o c u m e n t s r e q u i r e d b y
S e c t i o n 2 2 . 1 4 , t h e n t h e T r u s t e e s h a l l a c c e p t s u c h A l t e r n a t e L i q u i d i t y F a c i l i t y a n d , i f s o
d i r e c t e d b y t h e C o m m i s s i o n , o n o r a f t e r t h e e f f e c t i v e d a t e o f s u c h A l t e r n a t e L i q u i d i t y F a c i l i t y
p r o m p t l y s u r r e n d e r t h e 2 0 0 9 L i q u i d i t y F a c i l i t y b e i n g s o s u b s t i t u t e d i n a c c o r d a n c e w i t h t h e
r e s p e c t i v e t e r m s t h e r e o f f o r c a n c e l l a t i o n ; p r o v i d e d t h e T r u s t e e s h a l l n o t s u r r e n d e r a n y 2 0 0 9
L i q u i d i t y F a c i l i t y u n t i l a l l d r a w s o r r e q u e s t s t o p u r c h a s e 2 0 0 9 B o n d s m a d e u n d e r s u c h 2 0 0 9
L i q u i d i t y F a c i l i t y h a v e b e e n h o n o r e d i n a c c o r d a n c e w i t h t h e t e r m s t h e r e o f , i n c l u d i n g a l l
d r a w s r e q u i r e d t o b e m a d e i n c o n n e c t i o n w i t h s u c h s u b s t i t u t i o n . I n t h e e v e n t t h a t t h e
C o m m i s s i o n e l e c t s t o p r o v i d e a n A l t e r n a t e L i q u i d i t y F a c i l i t y w i t h r e s p e c t t o a n y S e r i e s o f
2 0 0 9 B o n d s , s u c h 2 0 0 9 B o n d s s h a l l b e s u b j e c t t o t h e m a n d a t o r y t e n d e r p r o v i s i o n s o f
S e c t i o n 2 2 . 0 5 ( a ) ( 2 ) . N o t w i t h s t a n d i n g t h e f o r e g o i n g , i f a t a n y t i m e t h e r e s h a l l c e a s e t o b e a n y
O u t s t a n d i n g 2 0 0 9 B o n d s o f a S e r i e s o r i f a l l t h e O u t s t a n d i n g 2 0 0 9 B o n d s o f a S e r i e s h a v e
b e e n c o n v e r t e d t o a F i x e d R a t e P e r i o d o r a L o n g - T e r m R a t e P e r i o d , o r a 2 0 0 9 L i q u i d i t y
F a c i l i t y s h a l l b e t e r m i n a t e d p u r s u a n t t o i t s t e r m s , t h e T r u s t e e s h a l l p r o m p t l y s u r r e n d e r s u c h
2 0 0 9 L i q u i d i t y F a c i l i t y i n a c c o r d a n c e w i t h i t s t e r m s f o r c a n c e l l a t i o n . T h e T r u s t e e s h a l l
c o m p l y w i t h t h e p r o c e d u r e s s e t f o r t h i n e a c h 2 0 0 9 L i q u i d i t y F a c i l i t y r e l a t i n g t o t h e
t e r m i n a t i o n t h e r e o f .
( b ) I n t h e e v e n t t h a t a 2 0 0 9 L i q u i d i t y F a c i l i t y i s i n e f f e c t w i t h r e s p e c t t o a S e r i e s
o f 2 0 0 9 B o n d s , t h e T r u s t e e s h a l l m a k e a d e m a n d f o r p a y m e n t u n d e r s u c h 2 0 0 9 L i q u i d i t y
F a c i l i t y , s u b j e c t t o a n d i n a c c o r d a n c e w i t h i t s t e r m s , i n o r d e r t o r e c e i v e p a y m e n t t h e r e u n d e r
o n e a c h P u r c h a s e D a t e f o r s u c h S e r i e s o f 2 0 0 9 B o n d s a s p r o v i d e d i n S e c t i o n 2 2 . 0 9 ( a ) ( i v ) ,
S e c t i o n 2 2 . 0 9 ( b ) ( i v ) o r S e c t i o n 2 2 . 0 9 ( c ) ( i v ) , a s a p p l i c a b l e .
( c ) E a c h s u c h d e m a n d f o r p a y m e n t s h a l l b e m a d e p u r s u a n t t o a n d i n a c c o r d a n c e
w i t h t h i s I n d e n t u r e . T h e T r u s t e e s h a l l g i v e n o t i c e o f e a c h s u c h d e m a n d f o r p a y m e n t t o t h e
C o m m i s s i o n a t t h e t i m e o f e a c h s u c h d e m a n d . T h e p r o c e e d s o f e a c h s u c h d e m a n d s h a l l b e
d e p o s i t e d i n t h e 2 0 0 9 L i q u i d i t y F a c i l i t y P u r c h a s e A c c o u n t w i t h i n t h e 2 0 0 9 B o n d s P u r c h a s e
F u n d a n d u s e d i n t h e o r d e r o f p r i o r i t y e s t a b l i s h e d b y S e c t i o n 2 2 . 1 1 . A t t h e t i m e o f m a k i n g
a n y d e m a n d u n d e r a 2 0 0 9 L i q u i d i t y F a c i l i t y p u r s u a n t t o S e c t i o n 2 2 . 1 3 ( b ) , t h e T r u s t e e s h a l l
d i r e c t t h e 2 0 0 9 L i q u i d i t y P r o v i d e r t o p a y t h e p r o c e e d s o f s u c h d e m a n d d i r e c t l y t o t h e T r u s t e e
f o r d e p o s i t i n t h e 2 0 0 9 L i q u i d i t y F a c i l i t y P u r c h a s e A c c o u n t . T h e T r u s t e e s h a l l c o m p l y w i t h
a l l p r o v i s i o n s o f e a c h 2 0 0 9 L i q u i d i t y F a c i l i t y i n o r d e r t o r e a l i z e u p o n a n y d e m a n d f o r
p a y m e n t t h e r e u n d e r , a n d w i l l n o t d e m a n d p a y m e n t u n d e r a n y 2 0 0 9 L i q u i d i t y F a c i l i t y o f a n y
a m o u n t s f o r p a y m e n t o f : ( i ) 2 0 0 9 L i q u i d i t y F a c i l i t y B o n d s ; o r ( i i ) 2 0 0 9 B o n d s h e l d b y t h e
C o m m i s s i o n o r a n y a f f i l i a t e o f t h e C o m m i s s i o n o r a n y n o m i n e e o f t h e C o m m i s s i o n u n l e s s
s u c h 2 0 0 9 L i q u i d i t y F a c i l i t y s p e c i f i c a l l y p e r m i t s s u c h d e m a n d .
( d ) A n y 2 0 0 9 B o n d s p u r c h a s e d w i t h p a y m e n t s m a d e u n d e r a 2 0 0 9 L i q u i d i t y
F a c i l i t y p u r s u a n t t o S e c t i o n 2 2 . 1 3 ( b ) s h a l l c o n s t i t u t e 2 0 0 9 L i q u i d i t y F a c i l i t y B o n d s a n d s h a l l
b e r e g i s t e r e d i n t h e n a m e o f , o r a s o t h e r w i s e d i r e c t e d b y , t h e a p p l i c a b l e L i q u i d i t y P r o v i d e r .
T h e T r u s t e e a g r e e s , u n l e s s o t h e r w i s e d i r e c t e d b y t h e 2 0 0 9 L i q u i d i t y P r o v i d e r , t o a c c e p t a n d
h o l d a n y 2 0 0 9 L i q u i d i t y F a c i l i t y B o n d s i n t r u s t f o r t h e b e n e f i t o f t h e 2 0 0 9 L i q u i d i t y P r o v i d e r
O H S W e s t : 2 6 0 6 9 2 4 4 7 . 6
3 5
1 1 8
until such time as the principal of and interest on such 2009 Liquidity Facility Bonds shall
have been paid as described in Section 22.13(e). At the option of the Commission, it may
provide funds to the 2009 Liquidity Provider to purchase 2009 Liquidity Facility Bonds, in
which event such 2009 Bonds shall be held by the Trustee in accordance with instructions by
the Commission.
(e) Unless otherwise provided in a 2009 Liquidity Facility, 2009 Liquidity
Facility Bonds of a Series shall be remarketed by the applicable Remarketing Agent prior to
any other 2009 Bonds of such Series tendered for purchase pursuant to Section 22.04 or
22.05 and shall be remarketed in accordance with the terms of the applicable Remarketing
Agreement. Upon (i) receipt by the Commission and the Trustee of written notification from
a 2009 Liquidity Provider that a 2009 Liquidity Facility has been fully reinstated with respect
to principal and interest and (ii) release by the 2009 Liquidity Provider of any 2009 Liquidity
Facility Bonds that the Remarketing Agent has remarketed, such 2009 Bonds shall be made
available to the purchasers thereof and shall no longer constitute 2009 Liquidity Facility
Bonds for purposes of this Indenture. The proceeds of any remarketing of 2009 Liquidity
Facility Bonds shall be paid to the 2009 Liquidity Provider by the Trustee on such
remarketing date in immediately available funds with interest on the sale price being
calculated as if such 2009 Bond were not a 2009 Liquidity Facility Bond; provided, however,
if all such 2009 Bonds are 2009 Liquidity Facility Bonds, at the principal amount thereof
plus accrued interest, and the remarketing date will be considered an Interest Payment Date.
(f) The Trustee agrees that it will, promptly upon receipt, send to the 2009
Liquidity Provider (by Electronic Means) a copy of every notice received by it hereunder
relating to any 2009 Liquidity Facility Bonds.
(g) Notwithstanding anything to the contrary herein or in the 2009 Bonds, all
obligations of the Commission under or in connection with any 2009 Liquidity Facility
(including, without limitation, the payment of any reimbursement obligations to any 2009
Liquidity Provider and the payment of any 2009 Liquidity Facility Bonds) shall be governed
by the terms of the applicable 2009 Liquidity Facility.
(h) The Trustee shall provide to the Remarketing Agent and to each Rating
Agency then rating any Series of 2009 Bonds written notice of the provision of a 2009
Liquidity Facility or the extension of any 2009 Liquidity Facility in effect with respect to
such Series of 2009 Bonds.
(i) Whenever requested in writing by the Commission, the Trustee shall submit to
the 2009 Liquidity Provider a reduction certificate or other appropriate documentation
necessary under the applicable 2009 Liquidity Facility to reduce the principal amount of the
related Series of 2009 Bonds and related interest to reflect any purchase or redemption of
such 2009 Bonds by the Commission and the cancellation of such 2009 Bonds.
Section 2214. Alternate Liquidity Facilities.
(a) So long as any 2009 Bonds of a Series bear interest at a Variable Rate (other
than 2009 Bonds in a Long -Term Rate Period for which there is no Liquidity Facility or a
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F i x e d R a t e P e r i o d ) , o n o r p r i o r t o t h e E x p i r a t i o n o r t e r m i n a t i o n o f a n y e x i s t i n g 2 0 0 9
L i q u i d i t y F a c i l i t y w i t h r e s p e c t t o s u c h S e r i e s , i n c l u d i n g a n y r e n e w a l s o r e x t e n s i o n s t h e r e o f
( o t h e r t h a n a n E x p i r a t i o n o f s u c h 2 0 0 9 L i q u i d i t y F a c i l i t y a t t h e f i n a l m a t u r i t y o f t h e 2 0 0 9
B o n d s t o w h i c h s u c h 2 0 0 9 L i q u i d i t y F a c i l i t y r e l a t e s ) , t h e C o m m i s s i o n s h a l l p r o v i d e t o t h e
T r u s t e e ( w i t h a c o p y t o t h e a p p l i c a b l e R e m a r k e t i n g A g e n t ) a r e n e w a l o r e x t e n s i o n o f t h e t e r m
o f t h e e x i s t i n g 2 0 0 9 L i q u i d i t y F a c i l i t y f o r s u c h S e r i e s o f 2 0 0 9 B o n d s o r a n A l t e r n a t e
L i q u i d i t y F a c i l i t y f o r s u c h S e r i e s o f 2 0 0 9 B o n d s m e e t i n g t h e r e q u i r e m e n t s s e t f o r t h i n
s u b s e c t i o n ( b ) o f t h i s S e c t i o n .
( b ) T h e C o m m i s s i o n m a y a t a n y t i m e p r o v i d e a n A l t e r n a t e L i q u i d i t y F a c i l i t y f o r a
S e r i e s o f 2 0 0 9 B o n d s i n a c c o r d a n c e w i t h t h e p r o v i s i o n s h e r e o f a n d u p o n d e l i v e r y t o t h e
T r u s t e e o f t h e i t e m s s p e c i f i e d i n s u b s e c t i o n ( c ) o f t h i s S e c t i o n .
A n y s u c h A l t e r n a t e L i q u i d i t y F a c i l i t y m u s t m e e t t h e f o l l o w i n g c o n d i t i o n s :
( i ) T h e o b l i g a t i o n s o f a 2 0 0 9 L i q u i d i t y P r o v i d e r u n d e r a n A l t e r n a t e L i q u i d i t y
F a c i l i t y t o p u r c h a s e 2 0 0 9 B o n d s o r o t h e r w i s e p r o v i d e f o r t h e P u r c h a s e P r i c e o f 2 0 0 9 B o n d s
t e n d e r e d o r d e e m e d t e n d e r e d p u r s u a n t t o S e c t i o n 2 2 . 0 4 o r S e c t i o n 2 2 . 0 5 s h a l l n o t b e s u b j e c t t o
s u s p e n s i o n o r t e r m i n a t i o n o n l e s s t h a n f i f t e e n ( 1 5 ) d a y s ' n o t i c e t o t h e C o m m i s s i o n a n d t h e
T r u s t e e ; p r o v i d e d , h o w e v e r , t h a t t h e o b l i g a t i o n s o f a 2 0 0 9 L i q u i d i t y P r o v i d e r t o p u r c h a s e 2 0 0 9
B o n d s o r o t h e r w i s e p r o v i d e f o r t h e P u r c h a s e P r i c e o f s u c h 2 0 0 9 B o n d s m a y b e i m m e d i a t e l y
s u s p e n d e d o r t e r m i n a t e d ( A ) w i t h o u t s u c h n o t i c e u p o n t h e o c c u r r e n c e o f s u c h e v e n t s a s m a y b e
p r o v i d e d i n a 2 0 0 9 L i q u i d i t y F a c i l i t y a n d w h i c h a r e d i s c l o s e d t o t h e H o l d e r s o f s u c h 2 0 0 9 B o n d s
i n c o n n e c t i o n w i t h t h e p r o v i s i o n o f s u c h 2 0 0 9 L i q u i d i t y F a c i l i t y o r , ( B ) i f a p p l i c a b l e , u p o n t h e
r e m a r k e t i n g o f s u c h 2 0 0 9 B o n d s u p o n t h e m a n d a t o r y t e n d e r t h e r e o f a s a r e s u l t o f p r o v i s i o n o f
s u c h A l t e m a t e L i q u i d i t y F a c i l i t y p u r s u a n t t o S e c t i o n 2 2 . 0 5 ( a ) ( 2 ) ;
( i i ) s u c h A l t e r n a t e L i q u i d i t y F a c i l i t y m u s t t a k e e f f e c t o n o r b e f o r e t h e
P u r c h a s e D a t e f o r t h e 2 0 0 9 B o n d s e s t a b l i s h e d p u r s u a n t t o S e c t i o n 2 2 . 0 5 ( a ) ( 2 ) ; a n d
( i i i ) s u c h A l t e m a t e L i q u i d i t y F a c i l i t y m u s t b e i n a n a m o u n t s u f f i c i e n t t o p a y
t h e m a x i m u m P u r c h a s e P r i c e o f t h e a f f e c t e d 2 0 0 9 B o n d s w h i c h w i l l b e a p p l i c a b l e d u r i n g t h e
R a t e P e r i o d c o m m e n c i n g o n s u c h s u b s t i t u t i o n .
( c ) P r i o r t o t h e d a t e o f t h e d e l i v e r y o f s u c h A l t e m a t e L i q u i d i t y F a c i l i t y t o t h e
T r u s t e e p u r s u a n t t o s u b s e c t i o n ( b ) o f t h i s S e c t i o n , t h e C o m m i s s i o n s h a l l c a u s e t o b e
f u r n i s h e d t o t h e T r u s t e e ( i ) a n O p i n i o n o f B o n d C o u n s e l a d d r e s s e d t o t h e T r u s t e e t o t h e e f f e c t
t h a t t h e d e l i v e r y o f s u c h A l t e r n a t e L i q u i d i t y F a c i l i t y t o t h e T r u s t e e i s a u t h o r i z e d u n d e r t h i s
I n d e n t u r e a n d c o m p l i e s w i t h t h e t e r m s h e r e o f a n d w i l l n o t , i n a n d o f i t s e l f , a d v e r s e l y a f f e c t
t h e T a x - E x e m p t s t a t u s o f i n t e r e s t o n t h e a f f e c t e d 2 0 0 9 B o n d s a n d ( i i ) a n o p i n i o n o r o p i n i o n s
o f c o u n s e l t o t h e L i q u i d i t y P r o v i d e r f o r s u c h A l t e r n a t e L i q u i d i t y F a c i l i t y a d d r e s s e d t o t h e
T r u s t e e , t o t h e e f f e c t t h a t s u c h A l t e r n a t e L i q u i d i t y F a c i l i t y h a s b e e n d u l y a u t h o r i z e d ,
e x e c u t e d a n d d e l i v e r e d b y t h e a p p l i c a b l e L i q u i d i t y P r o v i d e r a n d c o n s t i t u t e s t h e v a l i d , l e g a l
a n d b i n d i n g o b l i g a t i o n o f s u c h L i q u i d i t y P r o v i d e r e n f o r c e a b l e a g a i n s t s u c h L i q u i d i t y
P r o v i d e r i n a c c o r d a n c e w i t h i t s t e r m s a n d ( i i i ) i f t h e a f f e c t e d 2 0 0 9 B o n d s a r e n o t s u b j e c t t o
m a n d a t o r y t e n d e r f o r p u r c h a s e , t h e R a t i n g C o n f i r m a t i o n r e q u i r e d b y S e c t i o n 2 2 . 0 5 ( a ) ( 2 ) .
O n S W e s c 2 6 0 6 9 2 4 4 7 . 6
3 7
1 2 0
(d) The Trustee shall give notice by first class mail to the Holders of the affected
2009 Bonds of the proposed substitution of a 2009 Liquidity Facility not later than the
fifteenth (15th) day prior to the substitution date.
Section 22.15. Remarketing Agents for the 2009 Bonds. The Commission hereby
appoints as the initial Remarketing Agent for the 2009 Series A Bonds.
The Commission hereby appoints as the initial Remarketing Agent for
the 2009 Series B Bonds. The Commission hereby appoints as the initial
Remarketing Agent for the 2009 Series C Bonds. The Commission shall appoint and employ
one or more Remarketing Agents for 2009 Bonds of a Series in a Daily Rate Period, a Weekly
Rate Period, a Commercial Paper Rate Period and a Long -Term Rate Period. All references in
this Second Supplemental Indenture to the term "Remarketing Agent" shall mean the one or
more banks, trust companies or members of the National Association of Securities Dealers Inc.
appointed by the Commission to perform the duties and obligations of the Remarketing Agent
hereunder with respect to the 2009 Bonds; provided that any such bank, trust company or
member of the National Association of Securities Dealers, Inc. so appointed shall be organized
and doing business under the laws of any state of the United States of America and shall have,
together with its parent, if any, a capitalization of at least five hundred thousand dollars
($500,000) as shown in its or its parent's most recently published annual report. The
Commission shall execute and deliver to each Remarketing Agent a Remarketing Agreement,
which shall designate the Remarketing Agent's principal office and in which such Remarketing
Agent shall agree: (i) to perform the duties and comply with the requirements imposed upon it by
such Remarketing Agreement and this Indenture; and (ii) to keep such books and records with
respect to its activities as Remarketing Agent as shall be consistent with prudent industry
practice and to make such books and records available for inspection by each of the Commission
and the Trustee at all reasonable times upon reasonable notice.
ARTICLE XXIII
PURCHASE OF 2009 BONDS AT DIRECTION OF COMMISSION
Section 23.01. Mandatory Tender for Purchase of 2009 Bonds at Direction of
Commission.
(a) In addition to the provisions relating to the mandatory tender for purchase of
2009 Bonds pursuant to Section 22.05, the 2009 Bonds, or any of them, shall be subject to
mandatory tender for purchase by the Commission, in whole or in part (such that the portion
that is subject to mandatory tender for purchase pursuant to this Section 23.01 and the portion
not subject to such mandatory tender shall each be in an Authorized Denomination), at the
applicable Optional Purchase Price on each Optional Purchase Date. In the event that the
Commission determines to purchase any 2009 Bonds on any Optional Purchase Date, the
Commission shall provide the Trustee with written notice of such determination at least
fifteen (15) days prior to the Optional Purchase Date, which notice shall specify the Series of
2009 Bonds and the principal amount of such 2009 Bonds of each maturity that are to be
purchased and the Optional Purchase Date on which such purchase is to occur.
(b) When the Trustee shall receive notice from the Commission of its
determination to purchase 2009 Bonds pursuant to subsection (a) of this Section, the Trustee
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s h a l l g i v e n o t i c e , i n t h e n a m e o f t h e C o m m i s s i o n , o f t h e m a n d a t o r y t e n d e r f o r p u r c h a s e o f
s u c h 2 0 0 9 B o n d s , w h i c h n o t i c e s h a l l b e m a i l e d , b y f i r s t c l a s s m a i l , p o s t a g e p r e p a i d , n o t m o r e
t h a n n i n e t y ( 9 0 ) n o r l e s s t h a n t e n ( 1 0 ) d a y s b e f o r e t h e O p t i o n a l P u r c h a s e D a t e t o t h e H o l d e r s
o f a n y 2 0 0 9 B o n d s o r p o r t i o n s o f 2 0 0 9 B o n d s t o b e p u r c h a s e d a t t h e i r a d d r e s s e s a p p e a r i n g i n
t h e b o n d r e g i s t r a t i o n b o o k s m a i n t a i n e d b y t h e T r u s t e e , w i t h a c o p y t o t h e N o t i c e P a r t i e s .
S u c h n o t i c e s h a l l s p e c i f y t h e S e r i e s o f 2 0 0 9 B o n d s a n d t h e m a t u r i t i e s o f s u c h 2 0 0 9 B o n d s t o
b e p u r c h a s e d , t h e O p t i o n a l P u r c h a s e D a t e , t h e O p t i o n a l P u r c h a s e P r i c e a n d t h e p l a c e o r
p l a c e s w h e r e t h e O p t i o n a l P u r c h a s e P r i c e d u e u p o n s u c h t e n d e r f o r p u r c h a s e s h a l l b e p a y a b l e
a n d , i f l e s s t h a n a l l o f t h e 2 0 0 9 B o n d s o f s u c h S e r i e s a n d o f l i k e m a t u r i t y a r e t o b e p u r c h a s e d ,
t h e l e t t e r s a n d n u m b e r s o r o t h e r d i s t i n g u i s h i n g m a r k s o f s u c h 2 0 0 9 B o n d s s o t o b e p u r c h a s e d ,
a n d , i n t h e c a s e o f 2 0 0 9 B o n d s t o b e p u r c h a s e d i n p a r t o n l y , s u c h n o t i c e s h a l l a l s o s p e c i f y t h e
r e s p e c t i v e p o r t i o n s o f t h e p r i n c i p a l a m o u n t t h e r e o f t o b e p u r c h a s e d . S u c h n o t i c e s h a l l f u r t h e r
s t a t e t h a t o n s u c h O p t i o n a l P u r c h a s e D a t e t h e r e s h a l l b e c o m e d u e a n d p a y a b l e u p o n e a c h
2 0 0 9 B o n d t o b e p u r c h a s e d , t h e O p t i o n a l P u r c h a s e P r i c e t h e r e o f , o r t h e O p t i o n a l P u r c h a s e
P r i c e o f t h e s p e c i f i e d p o r t i o n s o f t h e p r i n c i p a l a m o u n t t h e r e o f t o b e p u r c h a s e d i n t h e c a s e o f
2 0 0 9 B o n d s t o b e p u r c h a s e d i n p a r t o n l y , a n d t h a t f r o m a n d a f t e r s u c h O p t i o n a l P u r c h a s e
D a t e i n t e r e s t o n s u c h 2 0 0 9 B o n d f o r t h e b e n e f i t o f t h e c u r r e n t H o l d e r o f s u c h 2 0 0 9 B o n d o r
t h e p o r t i o n o f s u c h 2 0 0 9 B o n d t o b e p u r c h a s e d s h a l l c e a s e t o a c c r u e a n d b e p a y a b l e .
R e c e i p t o f s u c h n o t i c e o f m a n d a t o r y t e n d e r f o r p u r c h a s e s h a l l n o t b e a
c o n d i t i o n p r e c e d e n t t o t h e m a n d a t o r y t e n d e r f o r p u r c h a s e o f t h e 2 0 0 9 B o n d s a n d f a i l u r e o f
a n y H o l d e r o f a 2 0 0 9 B o n d t o r e c e i v e a n y s u c h n o t i c e o r a n y d e f e c t i n s u c h n o t i c e s h a l l n o t
a f f e c t t h e v a l i d i t y o f t h e p r o c e e d i n g s f o r t h e m a n d a t o r y t e n d e r f o r p u r c h a s e o f t h e 2 0 0 9
B o n d s p u r s u a n t t o t h i s S e c t i o n .
( c ) I f a t t h e t i m e t h e T r u s t e e s e n d s a n y n o t i c e o f m a n d a t o r y t e n d e r f o r p u r c h a s e o f
t h e 2 0 0 9 B o n d s p u r s u a n t t o t h i s S e c t i o n , t h e C o m m i s s i o n h a s n o t d e p o s i t e d w i t h t h e T r u s t e e
a n a m o u n t s u f f i c i e n t t o p a y t h e f u l l O p t i o n a l P u r c h a s e P r i c e o f t h e 2 0 0 9 B o n d s , o r t h e
p o r t i o n s t h e r e o f , t o b e p u r c h a s e d , s u c h n o t i c e s h a l l s t a t e t h a t s u c h m a n d a t o r y t e n d e r f o r
p u r c h a s e i s c o n d i t i o n a l u p o n t h e r e c e i p t b y t h e T r u s t e e o n o r p r i o r t o t h e O p t i o n a l P u r c h a s e
D a t e f i x e d f o r s u c h p u r c h a s e o f m o n e y s s u f f i c i e n t t o p a y t h e O p t i o n a l P u r c h a s e P r i c e o f s u c h
2 0 0 9 B o n d s , o r t h e p o r t i o n s t h e r e o f t o b e p u r c h a s e d , a n d t h a t i f s u c h m o n e y s s h a l l n o t h a v e
b e e n s o r e c e i v e d s a i d n o t i c e s h a l l b e o f n o f o r c e a n d e f f e c t a n d t h e C o m m i s s i o n s h a l l n o t b e
r e q u i r e d t o p u r c h a s e s u c h 2 0 0 9 B o n d s . I n t h e e v e n t t h a t s u c h n o t i c e o f m a n d a t o r y t e n d e r f o r
p u r c h a s e c o n t a i n s s u c h a c o n d i t i o n a n d s u c h m o n e y s a r e n o t s o r e c e i v e d , n o p u r c h a s e o f t h e
2 0 0 9 B o n d s i d e n t i f i e d i n t h e n o t i c e o f m a n d a t o r y t e n d e r f o r p u r c h a s e s h a l l b e m a d e a n d t h e
T r u s t e e s h a l l , w i t h i n a r e a s o n a b l e t i m e t h e r e a f t e r , g i v e n o t i c e , t o t h e R e m a r k e t i n g A g e n t a n d
t o t h e p e r s o n s a n d i n t h e m a n n e r i n w h i c h t h e n o t i c e o f t e n d e r w a s g i v e n , t h a t s u c h m o n e y s
w e r e n o t s o r e c e i v e d a n d t h a t t h e r e w i l l b e n o p u r c h a s e o f 2 0 0 9 B o n d s p u r s u a n t t o t h e n o t i c e
o f m a n d a t o r y t e n d e r f o r p u r c h a s e .
( d ) I f l e s s t h a n a l l o f t h e O u t s t a n d i n g 2 0 0 9 B o n d s o f a n y S e r i e s a r e t o b e c a l l e d
f o r m a n d a t o r y t e n d e r f o r p u r c h a s e p u r s u a n t t o t h i s S e c t i o n , t h e p r i n c i p a l a m o u n t a n d m a t u r i t y
o f s u c h 2 0 0 9 B o n d s t o b e p u r c h a s e d s h a l l b e s e l e c t e d b y t h e C o m m i s s i o n i n i t s s o l e
d i s c r e t i o n , p r o v i d e d t h a t 2 0 0 9 L i q u i d i t y F a c i l i t y B o n d s o f s u c h S e r i e s s h a l l b e p u r c h a s e d
p r i o r t o a n y o t h e r 2 0 0 9 B o n d s o f s u c h S e r i e s . I f l e s s t h a n a l l o f t h e 2 0 0 9 B o n d s o f a n y S e r i e s
a n d o f l i k e m a t u r i t y s h a l l b e c a l l e d f o r m a n d a t o r y t e n d e r f o r p u r c h a s e p u r s u a n t t h i s S e c t i o n ,
O H S W e s c 2 6 0 6 9 2 4 4 7 . 6
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except as otherwise provided by the Securities Depository, the particular 2009 Bonds or
portions of 2009 Bonds to be purchased shall be selected at random by the Trustee in such
manner as the Trustee in its discretion may deem fair and appropriate; provided, however,
that in selecting portions of 2009 Bonds for purchase, the Trustee shall treat each 2009 Bond
of the same Series as representing that number of 2009 Bonds of the minimum Authorized
Denomination for the 2009 Bonds which is obtained by dividing the principal amount of such
2009 Bond by the minimum Authorized Denominationfor the 2009 Bonds.
Section 23.02. Delivery of Tendered 2009 Bonds. With respect to any 2009 Bond that
is registered in book -entry form, delivery of such 2009 Bond to the Trustee in connection with
any mandatory tender for purchase pursuant to Section 23.01 shall be effected by the making of,
or the irrevocable authorization to make, appropriate entries on the books of the Securities
Depository for such 2009 Bond or any Participant thereof to reflect the transfer of the beneficial
ownership interest in such 2009 Bond to the account of the Trustee, on behalf of the
Commission, or to the account of a Participant acting on behalf of the Commission. With respect
to any 2009 Bond that is not registered in book -entry form, delivery of such 2009 Bond to the
Trustee in connection with any mandatory tender for purchase pursuant to Section 23.01 shall be
effected by physical delivery of such 2009 Bond to the Trustee at its Principal Office, by 1:00
p.m. (New York City time) on the Optional Purchase Date, accompanied by an instrument of
transfer thereof, in a form satisfactory to the Trustee, executed in blank by the Holder thereof
with the signature of such Holder guaranteed in accordance with the guidelines set forth by one
of the nationally recognized medallion signature programs.
Section 23.03. 2009 Bonds Deemed Purchased.
(a) If moneys sufficient to pay the Optional Purchase Price of 2009 Bonds to be
purchased pursuant to Section 23.01 on an Optional Purchase Date shall be held by the
Trustee on such Optional Purchase Date, such 2009 Bonds shall be deemed to have been
purchased for all purposes of this Indenture, irrespective of whether or not such 2009 Bonds
shall have been delivered to the Trustee or transferred on the books of the Securities
Depository for the 2009 Bonds, and neither the former Holder or former Beneficial Owner of
such 2009 Bonds nor any other person shall have any claim thereunder, under this Indenture
or otherwise, for any amount other than the Optional Purchase Price thereof.
(b) In the event of non -delivery of any 2009 Bond to be purchased pursuant to
Section 23.01, the Trustee shall segregate and hold uninvested the moneys for the Optional
Purchase Price of such 2009 Bond in trust, without liability for interest thereon, for the
benefit of the former Holders or Beneficial Owners of such 2009 Bond, who shall, except as
provided in the following sentence, thereafter be restricted exclusively to such moneys for
the satisfaction of any claim for the Optional Purchase Price of such 2009 Bond. Any
moneys that the Trustee shall segregate and hold in trust for the payment of the Optional
Purchase Price of any 2009 Bond remaining unclaimed for one (1) year after the Optional
Purchase Date shall be paid automatically to the Commission. After the payment of such
unclaimed moneys to the Commission, the former Holder or former Beneficial Owner of
such 2009 Bond shall look only to the Commission for the payment thereof.
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S e c t i o n 2 3 . 0 4 . D e p o s i t o f 2 0 0 9 B o n d s . T h e T r u s t e e a g r e e s t o a c c e p t a n d h o l d a l l 2 0 0 9
B o n d s d e l i v e r e d t o i t p u r s u a n t t o S e c t i o n 2 3 . 0 1 i n t r u s t f o r t h e b e n e f i t o f t h e r e s p e c t i v e H o l d e r s
o r B e n e f i c i a l O w n e r s w h i c h s h a l l h a v e s o d e l i v e r e d s u c h 2 0 0 9 B o n d s u n t i l t h e O p t i o n a l P u r c h a s e
P r i c e o f s u c h 2 0 0 9 B o n d s s h a l l h a v e b e e n d e l i v e r e d t o o r f o r t h e a c c o u n t o f o r t o t h e o r d e r o f
s u c h H o l d e r s o r B e n e f i c i a l O w n e r s p u r s u a n t t o S e c t i o n 2 3 . 0 5 . A n y 2 0 0 9 B o n d s p u r c h a s e d
p u r s u a n t t o S e c t i o n 2 3 . 0 1 a n d r e g i s t e r e d f o r t r a n s f e r t o t h e T r u s t e e s h a l l b e h e l d i n t r u s t b y t h e
T r u s t e e f o r t h e b e n e f i t o f t h e C o m m i s s i o n i n a c c o r d a n c e w i t h t h e i n s t r u c t i o n s o f t h e
C o m m i s s i o n .
S e c t i o n 2 3 . 0 5 . P a y m e n t o f O p t i o n a l P u r c h a s e P r i c e o f 2 0 0 9 B o n d s .
( a ) M o n e y s h e l d b y t h e T r u s t e e f o r t h e p a y m e n t o f t h e O p t i o n a l P u r c h a s e P r i c e o f
2 0 0 9 B o n d s s u b j e c t t o m a n d a t o r y t e n d e r f o r p u r c h a s e p u r s u a n t t o S e c t i o n 2 3 . 0 1 s h a l l b e
a p p l i e d a t o r b e f o r e 3 : 0 0 p . m . ( N e w Y o r k C i t y t i m e ) t o t h e p u r c h a s e o f s u c h 2 0 0 9 B o n d s .
E x c e p t a s o t h e r w i s e p r o v i d e d w i t h r e s p e c t t o 2 0 0 9 B o n d s t h a t a r e r e g i s t e r e d i n b o o k - e n t r y
f r o m , p a y m e n t o f t h e O p t i o n a l P u r c h a s e P r i c e o f 2 0 0 9 B o n d s t e n d e r e d f o r p u r c h a s e p u r s u a n t
t o S e c t i o n 2 3 . 0 1 s h a l l b e m a d e o n l y u p o n t h e s u r r e n d e r o f s u c h 2 0 0 9 B o n d s t o t h e T r u s t e e .
N o t w i t h s t a n d i n g a n y t h i n g t o t h e c o n t r a r y i n t h i s S e c t i o n , i f t h e 2 0 0 9 B o n d s t o b e t e n d e r e d f o r
p u r c h a s e p u r s u a n t t o S e c t i o n 2 3 . 0 1 a r e r e g i s t e r e d i n b o o k - e n t r y f o r m , p a y m e n t o f t h e
O p t i o n a l P u r c h a s e P r i c e f o r t e n d e r e d 2 0 0 9 B o n d s s h a l l b e m a d e i n a c c o r d a n c e w i t h t h e r u l e s
a n d p r o c e d u r e s o f t h e S e c u r i t i e s D e p o s i t o r y .
( b ) T h e T r u s t e e s h a l l , a s t o a n y 2 0 0 9 B o n d s t h a t a r e n o t r e g i s t e r e d i n b o o k - e n t r y
f o r m a n d t h a t h a v e n o t b e e n d e l i v e r e d t o i t a s r e q u i r e d b y S e c t i o n 2 3 . 0 2 , p l a c e a s t o p t r a n s f e r
a g a i n s t a n a p p r o p r i a t e a m o u n t o f 2 0 0 9 B o n d s r e g i s t e r e d i n t h e n a m e o f t h e H o l d e r o f s u c h
2 0 0 9 B o n d s o n t h e b o n d r e g i s t r a t i o n b o o k s m a i n t a i n e d b y t h e T r u s t e e . T h e T r u s t e e s h a l l
p l a c e a n d m a i n t a i n s u c h s t o p t r a n s f e r c o m m e n c i n g w i t h t h e l o w e s t s e r i a l n u m b e r 2 0 0 9 B o n d
r e g i s t e r e d i n t h e n a m e o f s u c h H o l d e r u n t i l s t o p t r a n s f e r s h a v e b e e n p l a c e d a g a i n s t a n
a p p r o p r i a t e a m o u n t o f 2 0 0 9 B o n d s u n t i l t h e a p p r o p r i a t e 2 0 0 9 B o n d s a r e d e l i v e r e d t o t h e
T r u s t e e . U p o n s u c h d e l i v e r y , t h e T r u s t e e s h a l l m a k e a n y n e c e s s a r y a d j u s t m e n t s t o s u c h b o n d
r e g i s t r a t i o n b o o k s .
S e c t i o n 2 3 . 0 6 . 2 0 0 9 B o n d s O w n e d b y C o m m i s s i o n .
( a ) A n y 2 0 0 9 B o n d s p u r c h a s e d b y t h e C o m m i s s i o n p u r s u a n t t o S e c t i o n 2 3 . 0 1
s h a l l n o t b e c a n c e l l e d b y t h e T r u s t e e u n l e s s s u c h c a n c e l l a t i o n i s d i r e c t e d b y a n A u t h o r i z e d
R e p r e s e n t a t i v e b u t s h a l l r e m a i n O u t s t a n d i n g f o r a l l p u r p o s e s o f t h e I n d e n t u r e .
( b ) T h e C o m m i s s i o n c o v e n a n t s a n d a g r e e s t h a t i t s h a l l n o t t r a n s f e r o r c a u s e t h e
t r a n s f e r o f a n y 2 0 0 9 B o n d p u r c h a s e d b y t h e C o m m i s s i o n p u r s u a n t t o S e c t i o n 2 3 . 0 1 u n l e s s
t h e C o m m i s s i o n d e l i v e r s t o t h e T r u s t e e a F a v o r a b l e O p i n i o n o f B o n d C o u n s e l w i t h r e s p e c t t o
s u c h t r a n s f e r .
( c ) T h e C o m m i s s i o n c o v e n a n t s a n d a g r e e s t h a t , i n t h e e v e n t t h a t a t a n y t i m e t h e r e
a r e i n s u f f i c i e n t f u n d s i n t h e R e v e n u e F u n d , t h e P r i n c i p a l F u n d , t h e I n t e r e s t F u n d o r t h e
R e d e m p t i o n F u n d , a s a p p l i c a b l e , t o p a y t h e p r i n c i p a l o f a n d i n t e r e s t t h e n d u e o n t h e
O H S W e s t : 2 6 0 6 9 2 4 4 7 . 6
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Outstanding 2009 Bonds, it will surrender or cause to be surrendered to the Trustee for
cancellation any 2009 Bonds held by or on behalf of the Commission.
ARTICLE XXIV
ESTABLISHMENT OF FUNDS AND ACCOUNTS AND APPLICATION THEREOF
Section 24.01. Funds and Accounts. The following funds and accounts are hereby
established in connection with the 2009 Bonds:
(a) To ensure the proper application of such portion of proceeds from the sale of
the 2009 Bonds to be applied to pay the Costs of Issuance of the 2009 Bonds, there is hereby
established the 2009 Costs of Issuance Fund, such fund to be held by the Trustee.
(b) To provide for a reserve fund for the 2009 Bonds, there is hereby established
and maintained with the Trustee a fund designated as the "2009 Bonds Reserve Fund."
(c) To ensure proper application of funds to be applied to the purchase of 2009
Bonds tendered or deemed tendered for purchase pursuant to Section 22.04 or 22.05, there is
hereby established the 2009 Bonds Purchase Fund, such fund to be held by the Trustee.
There shall also be created and established three (3) separate accounts in the 2009 Bonds
Purchase Fund designated the "2009 Remarketing Account," the "2009 Liquidity Facility
Purchase Account' and the "2009 Commission Account."
Section 24.02. 2009 Costs of Issuance Fund. The monies set aside and placed in the
2009 Costs of Issuance Fund shall be expended for the purpose of paying the Costs of Issuance
of the 2009 Bonds. Before any payment from the 2009 Costs of Issuance Fund shall be made by
the Trustee, the Commission shall file or cause to be filed with the Trustee a requisition of the
Commission (each a "Requisition"), such Requisition to be signed by an Authorized
Representative and to include: (i) the item number of such payment; (ii) the name and address of
the person to whom each such payment is due, which may be the Commission in the case of
reimbursement for costs theretofore paid by the Commission; (iii) the respective amounts to be
paid; (iv) the purpose by general classification for which each obligation to be paid was incurred;
and (v) that obligations in the stated amounts have been incurred by the Commission and are
presently due and payable and that each item thereof is a proper charge against the 2009 Costs of
Issuance Fund and has not been previously paid from said fund. On February 1, 2010 any
remaining amounts in the 2009 Costs of Issuance Fund shall be transferred to the Revenue Fund
and the 2009 Costs of Issuance Fund shall be closed.
Section 24.03. Funding and Application of the 2009 Bonds Reserve Fund; Bond
Reserve Requirement for the 2009 Bonds. The Trustee shall hold the amount of S
on deposit in the 2009 Bonds Reserve Fund, which amount is equal to the 2009 Bonds Reserve
Requirement upon issuance of the 2009 Bonds. All amounts in the 2009 Bonds Reserve Fund
(including all amounts which may be obtained from any Reserve Facility on deposit in the 2009
Bonds Reserve Fund) shall be used and withdrawn by the Trustee solely: (i) for the purpose of
making up any deficiency in the Interest Fund or the Principal Fund relating to the 2009 Bonds;
or, (ii) together with any other moneys available therefor, (x) for the payment of all of the 2009
Bonds then Outstanding, (y) for the defeasance or redemption of all or a portion of the 2009
OHS West:260692447.6
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B o n d s t h e n O u t s t a n d i n g , p r o v i d e d , h o w e v e r , t h a t i f f u n d s o n d e p o s i t i n t h e 2 0 0 9 B o n d s R e s e r v e
F u n d a r e a p p l i e d t o t h e d e f e a s a n c e o r r e d e m p t i o n o f a p o r t i o n o f t h e 2 0 0 9 B o n d s , t h e a m o u n t o n
d e p o s i t i n t h e 2 0 0 9 B o n d s R e s e r v e F u n d i m m e d i a t e l y s u b s e q u e n t t o a p a r t i a l d e f e a s a n c e o r
r e d e m p t i o n s h a l l e q u a l t h e 2 0 0 9 B o n d s R e s e r v e R e q u i r e m e n t a p p l i c a b l e t o a l l 2 0 0 9 B o n d s
O u t s t a n d i n g i m m e d i a t e l y s u b s e q u e n t t o s u c h p a r t i a l d e f e a s a n c e o r r e d e m p t i o n , o r ( z ) f o r t h e
p a y m e n t o f t h e f i n a l p r i n c i p a l a n d i n t e r e s t p a y m e n t o f t h e 2 0 0 9 B o n d s .
S e c t i o n 2 4 . 0 4 . 2 0 0 9 B o n d s P u r c h a s e F u n d . M o n e y s i n t h e 2 0 0 9 B o n d s P u r c h a s e F u n d
s h a l l b e a p p l i e d a s p r o v i d e d i n t h i s S e c t i o n .
( a ) R e m a r k e t i n g A c c o u n t . A l l m o n e y s r e c e i v e d b y t h e T r u s t e e o n b e h a l f o f
p u r c h a s e r s o f 2 0 0 9 B o n d s p u r s u a n t t o S e c t i o n 2 2 . 1 0 ( a ) , o t h e r t h a n t h e C o m m i s s i o n , s h a l l b e
( i ) d e p o s i t e d i n t h e 2 0 0 9 R e m a r k e t i n g A c c o u n t w i t h i n t h e 2 0 0 9 B o n d s P u r c h a s e F u n d , ( i i )
h e l d i n t r u s t i n a c c o r d a n c e w i t h t h e p r o v i s i o n s h e r e o f a n d ( i i i ) p a i d o u t i n a c c o r d a n c e w i t h
S e c t i o n 2 2 . 1 1 .
( b ) L i q u i d i t y F a c i l i t y P u r c h a s e A c c o u n t . A l l m o n e y s r e c e i v e d b y t h e T r u s t e e a s
p a y m e n t s u n d e r a n y 2 0 0 9 L i q u i d i t y F a c i l i t y f o r t h e p u r c h a s e o f 2 0 0 9 B o n d s p u r s u a n t t o
S e c t i o n 2 2 . 0 9 ( a ) ( i v ) , S e c t i o n 2 2 . 0 9 ( b ) ( i v ) o r S e c t i o n 2 2 . 0 9 ( c ) ( i v ) s h a l l b e ( i ) d e p o s i t e d i n t h e
2 0 0 9 L i q u i d i t y F a c i l i t y P u r c h a s e A c c o u n t w i t h i n t h e 2 0 0 9 B o n d s P u r c h a s e F u n d , ( i i ) h e l d i n
t r u s t i n a c c o r d a n c e w i t h t h e p r o v i s i o n s h e r e o f a n d ( i i i ) p a i d o u t i n a c c o r d a n c e w i t h
S e c t i o n 2 2 . 1 1 .
( c ) C o m m i s s i o n A c c o u n t . A l l m o n e y s r e c e i v e d b y t h e T r u s t e e f r o m t h e
C o m m i s s i o n f o r t h e p u r c h a s e o f 2 0 0 9 B o n d s p u r s u a n t t o S e c t i o n 2 2 . 1 0 ( c ) s h a l l b e
( i ) d e p o s i t e d i n t h e 2 0 0 9 C o m m i s s i o n A c c o u n t w i t h i n t h e 2 0 0 9 B o n d s P u r c h a s e F u n d ,
( i i ) h e l d i n t r u s t i n a c c o r d a n c e w i t h t h e p r o v i s i o n s h e r e o f a n d ( i i i ) p a i d o u t i n a c c o r d a n c e w i t h
S e c t i o n 2 2 . 1 1 .
T h e m o n e y s i n t h e 2 0 0 9 B o n d s P u r c h a s e F u n d s h a l l b e u s e d s o l e l y t o p a y t h e P u r c h a s e
P r i c e o f 2 0 0 9 B o n d s a s p r o v i d e d h e r e i n ( o r t o r e i m b u r s e a L i q u i d i t y P r o v i d e r , i f a n y , f o r
p a y m e n t s m a d e u n d e r t h e a p p l i c a b l e 2 0 0 9 L i q u i d i t y F a c i l i t y f o r s u c h p u r p o s e ) a n d m a y n o t b e
u s e d f o r a n y o t h e r p u r p o s e s . A l l a m o u n t s h e l d i n t h e 2 0 0 9 B o n d s P u r c h a s e F u n d , i n c l u d i n g t h e
2 0 0 9 R e m a r k e t i n g A c c o u n t , t h e 2 0 0 9 L i q u i d i t y F a c i l i t y P u r c h a s e A c c o u n t a n d 2 0 0 9
C o m m i s s i o n A c c o u n t t h e r e i n , s h a l l b e h e l d i n t r u s t b y t h e T r u s t e e f o r t h e b e n e f i t o f t h e H o l d e r s
o r B e n e f i c i a l O w n e r s o f 2 0 0 9 B o n d s t o w h i c h s u c h a c c o u n t r e l a t e s t e n d e r e d o r d e e m e d t e n d e r e d
f o r p u r c h a s e p u r s u a n t t o S e c t i o n 2 2 . 0 4 a n d 2 2 . 0 5 ( p r o v i d e d t h a t a n y a m o u n t s h e l d i n t h e 2 0 0 9
R e m a r k e t i n g A c c o u n t t h a t a r e d e r i v e d f r o m t h e r e m a r k e t i n g o f 2 0 0 9 L i q u i d i t y F a c i l i t y B o n d s
s h a l l b e h e l d i n t r u s t f o r t h e b e n e f i t o f t h e 2 0 0 9 L i q u i d i t y P r o v i d e r ) .
M o n e y s i n t h e 2 0 0 9 B o n d s P u r c h a s e F u n d s h a l l b e h e l d s e g r e g a t e d f r o m a l l o t h e r f u n d s
a n d a c c o u n t s a n d u n i n v e s t e d p e n d i n g a p p l i c a t i o n t h e r e o f a s p r o v i d e d i n t h i s S e c t i o n 2 4 . 0 4 .
A R T I C L E X X V
M I S C E L L A N E O U S
S e c t i o n 2 5 . 0 1 . S e v e r a b i l i t y . I f a n y c o v e n a n t , a g r e e m e n t o r p r o v i s i o n , o r a n y p o r t i o n
t h e r e o f , c o n t a i n e d i n t h i s S e c o n d S u p p l e m e n t a l I n d e n t u r e , o r t h e a p p l i c a t i o n t h e r e o f t o a n y
O H S W e s t : 2 6 0 6 9 2 4 4 7 . 6
4 3
1 2 6
person or circumstance, is held to be unconstitutional, invalid or unenforceable, the remainder of
this Second Supplemental Indenture, and the application of any such covenant, agreement or
provision, or portion thereof, to other Persons or circumstances, shall be deemed severable and
shall not be affected thereby, and this Second Supplemental Indenture and the 2009 Bonds issued
pursuant hereto shall remain valid, and the Holders of the 2009 Bonds shall retain all valid rights
and benefits accorded to them under this Indenture, the Act, and the Constitution and statutes of
the State.
Section 25.02. Parties Interested Herein. Nothing in this Second Supplemental
Indenture expressed or implied is intended or shall be construed to confer upon, or to give to, any
person or entity, other than the Commission, the Trustee, each Credit Provider, each 2009
Liquidity Provider and the Holders of the 2009 Bonds, any right, remedy or claim under or by
reason of this Second Supplemental Indenture or any covenant, condition or stipulation hereof;
and all the covenants, stipulations, promises and agreements in this Second Supplemental
Indenture contained by and on behalf of the Commission shall be for the sole and exclusive
benefit of the Commission, the Trustee, each Credit Provider, each 2009 Liquidity Provider and
the Holders of the 2009 Bonds.
Section 25.03. Headings Not Binding. The headings in this Second Supplemental
Indenture are for convenience only and in no way define, limit or describe the scope or intent of
any provisions or sections of this Second Supplemental Indenture.
Section 25.04. Notice Addresses. Except as otherwise provided herein, it shall be
sufficient service or giving of notice, request, complaint, demand or other paper if the same shall
be duly mailed by registered or certified mail, postage prepaid, addressed to the Notice Address
for the appropriate party or parties as provided in Exhibit B hereto. Any such entity by notice
given hereunder may designate any different addresses to which subsequent notices, certificates
or other communications shall be sent, but no notice directed to any one such entity shall be
thereby required to be sent to more than two addresses. Any such communication may also be
sent by Electronic Means, receipt of which shall be confirmed.
Section 25.05. Notices to Rating Agencies. The Trustee shall provide notice to the
Rating Agencies of the following events with respect to the 2009 Bonds:
(1) Change in Trustee or Remarketing Agent;
(2) Amendments to the Indenture;
(3) Provision, Expiration, Termination, substitution or extension of a 2009
Liquidity Facility or any 2009 Liquidity Provider thereunder;
(4) Provision, Expiration, Termination, substitution or extension of a 2009
Credit Enhancement or any 2009 Credit Provider thereunder;
(5)
2009 Bonds;
Conversion of an Interest Rate Determination Method of any Series of
(6) Redemption or defeasance of any 2009 Bonds; and
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( 7 ) A n y m a n d a t o r y t e n d e r o f a n y 2 0 0 9 B o n d s .
S e c t i o n 2 5 . 0 6 . N o t i c e s t o 2 0 0 9 L i q u i d i t y P r o v i d e r . I n t h e e v e n t t h a t t h e C o m m i s s i o n i s
r e q u i r e d t o p r o v i d e w r i t t e n n o t i c e t o a C r e d i t P r o v i d e r p u r s u a n t t o S e c t i o n 8 . 0 1 ( B ) o f t h e
I n d e n t u r e , t h e C o m m i s s i o n s h a l l p r o v i d e a c o p y o f s u c h n o t i c e t o t h e 2 0 0 9 L i q u i d i t y P r o v i d e r , i f
a n y . I n t h e e v e n t t h a t t h e T r u s t e e i s r e q u i r e d t o p r o v i d e w r i t t e n n o t i c e o r w r i t t e n a c c e p t a n c e , a s
a p p l i c a b l e , t o a C r e d i t P r o v i d e r p u r s u a n t t o S e c t i o n s 8 . 0 1 ( C ) o r 8 . 0 1 ( D ) o f t h e I n d e n t u r e , t h e
T r u s t e e s h a l l p r o v i d e a c o p y o f s u c h n o t i c e o r a c c e p t a n c e , a s a p p l i c a b l e , t o t h e 2 0 0 9 L i q u i d i t y
P r o v i d e r , i f a n y .
S e c t i o n 2 5 . 0 7 . N o C o m p e n s a t i o n o f T r u s t e e F r o m P r o c e e d s o f 2 0 0 9 L i q u i d i t y
F a c i l i t y . T h e T r u s t e e ' s c o m p e n s a t i o n f o r s e r v i c e s r e n d e r e d b y i t i n t h e e x e r c i s e a n d
p e r f o r m a n c e o f a n y o f t h e p o w e r s a n d d u t i e s u n d e r t h e I n d e n t u r e m a y n o t b e p a i d u s i n g m o n e y s
d r a w n u n d e r ( o r o t h e r w i s e o b t a i n e d p u r s u a n t t o t h e t e r m s o f ) t h e 2 0 0 9 L i q u i d i t y F a c i l i t y o r f r o m
a n y r e m a r k e t i n g o r o t h e r p r o c e e d s o f 2 0 0 9 L i q u i d i t y F a c i l i t y B o n d s .
S e c t i o n 2 5 . 0 8 . I n d e n t u r e t o R e m a i n i n E f f e c t . S a v e a n d e x c e p t a s a m e n d e d a n d
s u p p l e m e n t e d b y t h i s S e c o n d S u p p l e m e n t a l I n d e n t u r e , t h e I n d e n t u r e s h a l l r e m a i n i n f u l l f o r c e
a n d e f f e c t .
S e c t i o n 2 5 . 0 9 . E f f e c t i v e D a t e o f S e c o n d S u p p l e m e n t a l I n d e n t u r e . T h i s S e c o n d
S u p p l e m e n t a l I n d e n t u r e s h a l l t a k e e f f e c t u p o n i t s e x e c u t i o n a n d d e l i v e r y .
S e c t i o n 2 5 . 1 0 . E x e c u t i o n i n C o u n t e r p a r t s . T h i s S e c o n d S u p p l e m e n t a l I n d e n t u r e m a y
b e e x e c u t e d i n s e v e r a l c o u n t e r p a r t s , e a c h o f w h i c h s h a l l b e d e e m e d a n o r i g i n a l , a n d a l l o f w h i c h
s h a l l c o n s t i t u t e b u t o n e a n d t h e s a m e i n s t r u m e n t .
O H S W e s c 2 6 0 6 9 2 4 4 7 . 6
4 5
1 2 8
IN WITNESS WHEREOF, the parties hereto have executed this Second Supplemental
Indenture by their officers thereunto duly authorized as of the day and year first written above.
(Seal)
ATTEST:
Clerk of the
Riverside County Transportation Commission
APPROVED AS TO FORM:
By:
General Counsel
OHS West:260692447.6
RIVERSIDE COUNTY TRANSPORTATION
COMMISSION
By:
Executive Director
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:
Authorized Officer
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EXHIBIT A
FORM OF 2009 BOND
No. R— $
Riverside County Transportation Commission
Sales Tax Revenue Bond
(Limited Tax Bond)
2009 Series
INTEREST RATE MATURITY ISSUE DATE
Variable
June 1, 20_ , 2009
CUSIP
REGISTERED OWNER: Cede & Co.
PRINCIPAL AMOUNT: Dollars
RIVERSIDE COUNTY TRANSPORTATION COMMISSION, a public entity duly
organized and existing under the laws of the State of California (the "Commission"), for value
received, hereby promises to pay (but solely from Revenues as hereinafter referred to) in lawful
money of the United States of America, to the registered Holder or registered assigns, on the
maturity date set forth above, unless redeemed prior thereto as hereinafter provided, the principal
amount specified above, together with interest thereon from the Issue Date set forth above until
the principal hereof shall have been paid, at the interest rates and on the dates (each, an "Interest
Payment Date") described herein. The principal of and premium, if any, on this Bond are
payable to the registered Holder hereof upon presentation and surrender of this Bond at the
principal office of U.S. Bank National Association, as trustee (together with any successor as
trustee under the hereinafter defined Indenture, the "Trustee") in Los Angeles, California.
Interest on this Bond shall be paid by check drawn upon the Trustee and mailed on the applicable
Interest Payment Date to the registered Holder hereof as of the close of business on the Record
Date at such registered Holder's address as it appears on the Bond Register. As used herein,
"Record Date" means: (a) for any Interest Payment Date in respect of any Daily Rate Period,
Weekly Rate Period or Commercial Paper Ratc Period, the Business Day next preceding such
Interest Payment Date; and (b) for any Interest Payment Date in respect of any Long -Term Rate
Period or Fixed Rate Period, the fifteenth (15th) day (whether or not a Business Day) of the
month preceding the month in which such Interest Payment Date occurs.
This Bond is one of a duly authorized issue of bonds of the Commission, designated as
"Riverside County Transportation Commission, Sales Tax Revenue Bonds (Limited Tax
Bonds)" (the "Bonds"), of the series designated above, all of which are being issued pursuant to
the provisions of the Riverside County Transportation Sales Tax Act, Division 25
(Section 240000 et seq.) of the Public Utilities Code of the State of California, as now in effect
and as it may from time to time hereafter be amended or supplemented (the "Act"), the
Transportation Expenditure Plan and Retail Transaction and Use Tax Ordinance, adopted by the
OHS West260692447.6
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Commission on May 8, 2002 and approved by at least two-thirds of electors voting on such
proposition in the November 5, 2002 election and any amendments or extensions thereto
(collectively, and together with the Act, the "Law"), and an Indenture, dated as of June 1, 2008,
as supplemented, including as supplemented by a Second Supplemental Indenture, dated as of
October 1, 2009 (the "Second Supplemental Indenture"), each between the Conunission and the
Trustee, hereinafter referred to collectively as the "Indenture." Said authorized issue of Bonds is
not limited in aggregate principal amount and consists or may consist of one or more series of
varying denominations, dates, maturities, interest rates and other provisions, as in the Indenture
provided. Capitalized terms used herein and not otherwise defined shall have the meaning given
such terms in the Indenture.
THIS BOND IS A LIMITED TAX BOND OBLIGATION OF THE COMMISSION
PAYABLE SOLELY FROM REVENUES AS DEFINED AND PROVIDED IN THE
INDENTURE AND CERTAIN OTHER FUNDS PLEDGED UNDER THE INDENTURE
AND THE COMMISSION IS NOT OBLIGATED TO PAY THIS BOND EXCEPT FROM
REVENUES AND THOSE CERTAIN OTHER FUNDS PLEDGED UNDER THE
INDENTURE. THIS BOND DOES NOT CONSTITUTE A DEBT OR LIABILITY OF
THE STATE OF CALIFORNIA (THE "STATE") OR ANY POLITICAL SUBDIVISION
OF THE STATE OTHER THAN THE COMMISSION, OR A PLEDGE OF THE FULL
FAITH AND CREDIT OF THE STATE OR OF ANY POLITICAL SUBDIVISION OF
THE STATE. THE GENERAL FUND OF THE COMMISSION IS NOT LIABLE, AND
THE CREDIT OR TAXING POWER (OTHER THAN AS DESCRIBED HEREIN) OF
THE COMMISSION IS NOT PLEDGED, FOR THE PAYMENT OF THE BONDS,
THEIR INTEREST, OR ANY PREMIUM DUE UPON REDEMPTION OF THE BONDS.
THE BONDS ARE NOT SECURED BY A LEGAL OR EQUITABLE PLEDGE OF, OR
CHARGE, LIEN OR ENCUMBRANCE UPON, ANY OF THE PROPERTY OF THE
COMMISSION OR ANY OF ITS INCOME OR RECEIPTS, EXCEPT THE REVENUES
AND THE CERTAIN OTHER FUNDS PLEDGED UNDER THE INDENTURE.
Reference is hereby made to the Indenture and the Law for a description of the terms on
which the Bonds are issued and to be issued, the provisions with regard to the nature and extent
of the pledge of Revenues and certain other funds and the rights of the registered Holders of the
Bonds and all the terms of the Indenture are hereby incorporated herein and constitute a contract
between the Commission and the registered Holder from time to time of this Bond, and to all the
provisions thereof the registered Holder of this Bond, by its acceptance hereof, consents and
agrees. Additional Bonds may be issued and other indebtedness may be incurred on a parity
with the Series of Bonds of which this Bond is a part, but only subject to the conditions and
limitations contained in the Indenture.
This Bond is payable as to both principal and interest, and any premium upon redemption
hereof, exclusively from the Revenues and other funds pledged under the Indenture, which
consist primarily of the amounts available for distribution to the Commission on and after July 1,
2009 on account of the retail transactions and use tax imposed in the County of Riverside
pursuant to the Law, after deducting amounts payable by the Commission to the State Board of
Equalization for costs and expenses for its services in connection with the retail transactions and
use taxes collected pursuant to the Act, and all regularly -scheduled amounts (but not termination
payments) owed or paid to the Commission by any Counterparty under any Interest Rate Swap
OHS West:260692447.6
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"
"
"
A g r e e m e n t a f t e r o f f s e t f o r t h e r e g u l a r l y - s c h e d u l e d a m o u n t s ( b u t n o t t e r m i n a t i o n p a y m e n t s ) o w e d
o r p a i d b y t h e C o m m i s s i o n t o s u c h C o u n t e r p a r t y u n d e r s u c h I n t e r e s t R a t e S w a p A g r e e m e n t , a n d ,
a s t o P u r c h a s e P r i c e , f r o m t h e p r o c e e d s o f r e m a r k e t i n g t h i s B o n d a n d a n y m o n e y s m a d e
a v a i l a b l e u n d e r t h e L i q u i d i t y F a c i l i t y , i f a n y , r e l a t i n g t o t h i s B o n d , a l l a s p r o v i d e d i n t h e
I n d e n t u r e , a n d t h e C o m m i s s i o n i s n o t o b l i g a t e d t o p a y t h e p r i n c i p a l o f a n d i n t e r e s t o n t h i s B o n d
e x c e p t f r o m R e v e n u e s a n d c e r t a i n o t h e r f u n d s p l e d g e d t h e r e u n d e r .
I n t e r e s t R a t e D e t e r m i n a t i o n M e t h o d , R a t e P e r i o d s , I n t e r e s t P a y m e n t D a t e s a n d
A u t h o r i z e d D e n o m i n a t i o n s
I n t h e m a n n e r h e r e i n a f t e r p r o v i d e d a n d s u b j e c t t o t h e p r o v i s i o n s o f t h e I n d e n t u r e , t h e
t e r m o f t h i s B o n d w i l l b e d i v i d e d i n t o c o n s e c u t i v e R a t e P e r i o d s d u r i n g e a c h o f w h i c h t h i s B o n d
s h a l l b e a r i n t e r e s t a t t h e D a i l y R a t e ( t h e " D a i l y R a t e P e r i o d " ) , t h e W e e k l y R a t e ( t h e " W e e k l y
R a t e P e r i o d " ) , t h e C o m m e r c i a l P a p e r R a t e ( t h e " C o m m e r c i a l P a p e r R a t e P e r i o d " ) , t h e L o n g -
T e r m R a t e ( t h e " L o n g - T e r m R a t e P e r i o d " ) o r t h e F i x e d R a t e ( t h e " F i x e d R a t e P e r i o d " ) . T h e
i n i t i a l R a t e P e r i o d f o r t h i s B o n d s h a l l b e a W e e k l y R a t e P e r i o d a n d d u r i n g s u c h i n i t i a l R a t e
P e r i o d t h i s B o n d s h a l l b e a r i n t e r e s t a t W e e k l y R a t e s . T h e s u b s e q u e n t R a t e P e r i o d ( s ) a n d i n t e r e s t
r a t e ( s ) f o r t h i s B o n d s h a l l b e d e t e r m i n e d i n a c c o r d a n c e w i t h t h e p r o v i s i o n s o f t h e I n d e n t u r e .
T h i s B o n d s h a l l b e a r i n t e r e s t f r o m t h e l a t e s t o f ( i ) i t s I s s u e D a t e ; ( i i ) t h e m o s t r e c e n t
I n t e r e s t P a y m e n t D a t e t o w h i c h i n t e r e s t h a s b e e n p a i d o r d u l y p r o v i d e d f o r , o r ( i i i ) i f t h e d a t e o f
a u t h e n t i c a t i o n o f t h i s B o n d i s a f t e r a R e c o r d D a t e b u t p r i o r t o t h e i m m e d i a t e l y s u c c e e d i n g
I n t e r e s t P a y m e n t D a t e , t h e I n t e r e s t P a y m e n t D a t e i m m e d i a t e l y s u c c e e d i n g s u c h d a t e o f
a u t h e n t i c a t i o n . D u r i n g D a i l y R a t e P e r i o d s , W e e k l y R a t e P e r i o d s o r C o m m e r c i a l P a p e r R a t e
P e r i o d s , i n t e r e s t o n t h i s B o n d s h a l l b e c o m p u t e d o n t h e b a s i s o f a 3 6 5 - o r 3 6 6 - d a y y e a r f o r t h e
n u m b e r o f d a y s a c t u a l l y e l a p s e d . W h i l e t h i s B o n d i s i n a L o n g - T e r m R a t e P e r i o d o r t h e F i x e d
R a t e P e r i o d , i n t e r e s t o n t h i s B o n d s h a l l b e c o m p u t e d u p o n t h e b a s i s o f a 3 6 0 - d a y y e a r , c o n s i s t i n g
o f t w e l v e 3 0 - d a y m o n t h s . T h e t e r m " I n t e r e s t P a y m e n t D a t e " m e a n s : ( i ) w i t h r e s p e c t t o a n y
D a i l y o r W e e k l y R a t e P e r i o d , t h e f i r s t B u s i n e s s D a y o f e a c h c a l e n d a r m o n t h ; ( i i ) w i t h r e s p e c t t o
a n y C o m m e r c i a l P a p e r R a t e P e r i o d , t h e d a y i m m e d i a t e l y s u c c e e d i n g t h e l a s t d a y o f t h e
C o m m e r c i a l P a p e r R a t e P e r i o d a p p l i c a b l e t o t h i s B o n d ; ( i i i ) w i t h r e s p e c t t o a L o n g - T e r m R a t e
P e r i o d , e a c h J u n e 1 a n d D e c e m b e r 1 o c c u r r i n g d u r i n g s u c h L o n g - T e r m R a t e P e r i o d ; ( i v ) w i t h
r e s p e c t t o a F i x e d R a t e P e r i o d , e a c h J u n e 1 a n d D e c e m b e r 1 f r o m t h e F i x e d R a t e C o n v e r s i o n
D a t e t o t h e m a t u r i t y o r e a r l i e r r e d e m p t i o n o f t h i s B o n d ; a n d ( v ) a n d i n a l l e v e n t s t h e f i n a l
m a t u r i t y d a t e o r r e d e m p t i o n d a t e o f t h i s B o n d , o r a n y d a t e o n w h i c h , p u r s u a n t t o t h e t e r m s o f t h e
I n d e n t u r e , t h e B o n d i s s u b j e c t t o r e d e m p t i o n a t t h e o p t i o n o f t h e C o m m i s s i o n .
P u r s u a n t t o t h e I n d e n t u r e , a t a n y o n e t i m e , e a c h 2 0 0 9 S e r i e s _ B o n d s h a l l h a v e t h e s a m e
I n t e r e s t R a t e D e t e r m i n a t i o n M e t h o d a n d s h a l l b e a r i n t e r e s t a t t h e s a m e r a t e , e x c e p t f o r 2 0 0 9
S e r i e s B o n d s d u r i n g a C o m m e r c i a l P a p e r R a t e P e r i o d a n d 2 0 0 9 S e r i e s _ B o n d s o f d i f f e r e n t
m a t u r i t i e s b e a r i n g i n t e r e s t a t a F i x e d R a t e . A t t h e t i m e s a n d s u b j e c t t o t h e c o n d i t i o n s s e t f o r t h i n
t h e I n d e n t u r e , t h e C o m m i s s i o n m a y e l e c t t h a t t h e 2 0 0 9 S e r i e s _ B o n d s s h a l l b e a r i n t e r e s t b a s e d
o n a n I n t e r e s t R a t e D e t e r m i n a t i o n M e t h o d a n d f o r a R a t e P e r i o d , d i f f e r e n t f r o m t h e I n t e r e s t R a t e
D e t e r m i n a t i o n M e t h o d o r R a t e P e r i o d t h e n a p p l i c a b l e _ N o t i c e o f a n y a d j u s t m e n t o f t h e I n t e r e s t
R a t e D e t e r m i n a t i o n M e t h o d o r R a t e P e r i o d s h a l l b e g i v e n b y t h e T r u s t e e t o t h e H o l d e r o f t h i s
B o n d a s s e t f o r t h i n t h e I n d e n t u r e .
O H S W e s t : 2 6 0 6 9 2 4 4 7 . 6
A - 3
1 3 2
During each Daily Rate Period, this Bond shall bear interest at the Daily Rate, determined
by the Remarketing Agent on each Business Day.
Except as otherwise provided in the Indenture, during each Weekly Rate Period, this
Bond shall bear interest at the Weekly Rate, determined by the Remarketing Agent by 5:00 p.m.,
New York City time on each Wednesday (or the immediately succeeding Business Day, if such
Wednesday is not a Business Day) for the next Calendar Week, provided that the Weekly Rate
for the first Calendar Week (or portion thereof) following a Conversion Date resulting in a
change in the Interest Rate Determination Method to a Weekly Rate shall be set by the
Remarketing Agent on the Business Day immediately preceding such Conversion Date.
During each Commercial Paper Rate Period, this Bond shall bear interest at the
Commercial Paper Rate or rates applicable to this Bond. The Remarketing Agent shall select the
Commercial Paper Rate Period or Periods for each Series of Bonds on a Business Day selected
by the Remarketing Agent not more than five (5) Business Days prior to the fist day of such
Commercial Paper Rate Period and not later than 12:30 p.m., New York City time, on the first
day of such Commercial Paper Rate Period. Each Commercial Paper Rate Period shall be a
period of not less than one nor more than 270 days.
During the Fixed Rate Period, this Bond shall bear interest at the Fixed Rate, determined
by the Remarketing Agent on the Fixed Rate Computation Date in accordance with the
provisions of the Indenture, and shall not be subject to Conversion to another Interest Rate
Determination Method.
During a Long -Term Rate Period, this Bond shall bear interest at the Long -Term Rate
determined by the Remarketing Agent by 5:00 p.m. on the Long -Term Rate Computation Date.
The Commission shall select the duration of each Long -Term Rate Period and each Long -Term
Rate Period shall end on the date selected by the Commission, which date is a minimum of 180
days after commencement of such Long -Term Rate Period, but in no event later than the
maturity date of this Bond.
This Bond shall initially bear interest at a Weekly Rate and the initial Interest Payment
Date shall be , 20 .
In no event shall the interest rate on this Bond be greater than the Maximum Interest
Rate.
This Bond shall be deliverable in the form of a fully registered Bond in the following
denominations: (a) during any Daily Rate Period, Weekly Rate Period or Commercial Paper
Rate Period, $100,000 and any integral multiple of $5,000 in excess thereof; and (b) during a
Long -Term Rate Period or the Fixed Rate Period, $5,000 and any multiple thereof (such
denominations being referred to herein as "Authorized Denominations").
Optional and Mandatory Tender Provisions
"Purchase Date" means any date on which this Bond is purchased pursuant to the
provisions of the Indenture.
OHS West:260692447.6
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"
" P u r c h a s e P r i c e " m e a n s a n a m o u n t e q u a l t o 1 0 0 % o f t h e p r i n c i p a l a m o u n t o f t h i s B o n d
( o r t h e p o r t i o n h e r e o f ) t e n d e r e d o r d e e m e d t e n d e r e d t o t h e T r u s t e e f o r p u r c h a s e p u r s u a n t t o t h e
I n d e n t u r e , p l u s i f s u c h P u r c h a s e D a t e i s n o t a n I n t e r e s t P a y m e n t D a t e , a c c r u e d i n t e r e s t t o b u t n o t
i n c l u d i n g t h e P u r c h a s e D a t e ; p r o v i d e d , h o w e v e r , i f t h e P u r c h a s e D a t e o c c u r s b e f o r e a n I n t e r e s t
P a y m e n t D a t e , b u t a f t e r t h e R e c o r d D a t e a p p l i c a b l e t o . s u c h I n t e r e s t P a y m e n t D a t e , t h e n t h e
P u r c h a s e P r i c e s h a l l n o t i n c l u d e a c c r u e d i n t e r e s t , w h i c h s h a l l b e p a i d t o t h e H o l d e r o n t h e
a p p l i c a b l e R e c o r d D a t e .
T h i s B o n d s h a l l b e s u b j e c t t o m a n d a t o r y t e n d e r f o r p u r c h a s e a t t h e a p p l i c a b l e P u r c h a s e
P r i c e : ( a ) o n t h e C o n v e r s i o n D a t e f o r t h e 2 0 0 9 S e r i e s B o n d s t o a n e w I n t e r e s t R a t e
D e t e r m i n a t i o n M e t h o d s p e c i f i e d i n a C o n v e r s i o n N o t i c e ; ( b ) i f t h i s B o n d i s b e a r i n g i n t e r e s t a t a
D a i l y R a t e , a W e e k l y R a t e o r a C o m m e r c i a l P a p e r R a t e , ( 1 ) o n t h e f i f t h ( 5 t h ) B u s i n e s s D a y
p r e c e d i n g ( A ) t h e s c h e d u l e d E x p i r a t i o n o f a n a p p l i c a b l e 2 0 0 9 L i q u i d i t y F a c i l i t y o r ( B ) t h e
T e r m i n a t i o n o f s u c h 2 0 0 9 L i q u i d i t y F a c i l i t y , a t t h e e l e c t i o n o f t h e C o m m i s s i o n a s p e r m i t t e d b y
s u c h 2 0 0 9 L i q u i d i t y F a c i l i t y ; a n d ( 2 ) o n t h e d a t e o f t h e p r o v i s i o n o f a n a p p l i c a b l e A l t e r n a t e
L i q u i d i t y F a c i l i t y f o r t h i s B o n d a n d t h e r e s u l t a n t T e r m i n a t i o n o f t h e e x i s t i n g 2 0 0 9 L i q u i d i t y
F a c i l i t y ; p r o v i d e d , h o w e v e r , t h a t , n o t w i t h s t a n d i n g a n y o t h e r p r o v i s i o n o f t h e I n d e n t u r e t o t h e
c o n t r a r y , n o m a n d a t o r y t e n d e r f o r p u r c h a s e s h a l l b e r e q u i r e d a s d e s c r i b e d i n t h i s c l a u s e ( b ) ( 2 ) i f
a R a t i n g C o n f i r m a t i o n s h a l l b e d e l i v e r e d b y e a c h R a t i n g A g e n c y t h e n r a t i n g t h i s B o n d o n t h e
d a t e o f t h e p r o v i s i o n o f t h e A l t e r n a t e L i q u i d i t y F a c i l i t y a n d t h e r e s u l t a n t T e r m i n a t i o n o f t h e
e x i s t i n g 2 0 0 9 L i q u i d i t y F a c i l i t y ; ( c ) i f t h i s B o n d i s b e a r i n g i n t e r e s t a t a C o m m e r c i a l P a p e r R a t e ,
o n t h e I n t e r e s t P a y m e n t D a t e i m m e d i a t e l y f o l l o w i n g e a c h C o m m e r c i a l P a p e r R a t e P e r i o d f o r t h i s
B o n d ; ( d ) i f t h i s B o n d i s b e a r i n g i n t e r e s t a t a L o n g - T e r m R a t e , o n t h e I n t e r e s t P a y m e n t D a t e
i m m e d i a t e l y f o l l o w i n g e a c h L o n g - T e r m R a t e P e r i o d f o r t h i s B o n d ; ( e ) i f t h i s B o n d i s b e a r i n g
i n t e r e s t a t a W e e k l y R a t e o r a D a i l y R a t e , o n a n y B u s i n e s s D a y ; a n d ( f ) i f t h i s B o n d i s b e a r i n g
i n t e r e s t a t a D a i l y R a t e , a W e e k l y R a t e o r a C o m m e r c i a l P a p e r R a t e , a n d i f t h e T r u s t e e h a s
r e c e i v e d w r i t t e n n o t i c e f r o m t h e a p p l i c a b l e 2 0 0 9 L i q u i d i t y P r o v i d e r t h a t a n e v e n t o f d e f a u l t o r
e v e n t o f T e r m i n a t i o n h a s o c c u r r e d u n d e r t h e a p p l i c a b l e 2 0 0 9 L i q u i d i t y F a c i l i t y w i t h t h e e f f e c t
t h a t t h e o b l i g a t i o n s o f s u c h 2 0 0 9 L i q u i d i t y P r o v i d e r t o p u r c h a s e t h i s B o n d o r o t h e r w i s e p r o v i d e
f o r t h e P u r c h a s e P r i c e o f t h i s B o n d s h a l l t e r m i n a t e o n t h e d a t e s p e c i f i e d i n s u c h n o t i c e , o n a
B u s i n e s s D a y s e l e c t e d b y t h e T r u s t e e i n a c c o r d a n c e w i t h t h e I n d e n t u r e .
E x c e p t a s o t h e r w i s e p r o v i d e d i n t h e I n d e n t u r e , d u r i n g a n y D a i l y R a t e P e r i o d o r W e e k l y
R a t e P e r i o d , t h i s B o n d o r a n y p o r t i o n h e r e o f s h a l l b e s u b j e c t t o t e n d e r a t t h e o p t i o n o f t h e H o l d e r
o r B e n e f i c i a l O w n e r o f t h i s B o n d , a s s p e c i f i e d i n t h e I n d e n t u r e .
I f t h i s B o n d i s r e g i s t e r e d i n b o o k - e n t r y f o r m w i t h a S e c u r i t i e s D e p o s i t o r y , d e l i v e r y o f t h i s
B o n d t o t h e T r u s t e e i n c o n n e c t i o n w i t h a n y o p t i o n a l o r m a n d a t o r y t e n d e r f o r p u r c h a s e s h a l l b e
e f f e c t e d b y t h e m a k i n g o f , o r t h e i r r e v o c a b l e a u t h o r i z a t i o n t o m a k e , a p p r o p r i a t e e n t r i e s o n t h e
b o o k s o f t h e S e c u r i t i e s D e p o s i t o r y f o r t h i s B o n d o r a n y P a r t i c i p a n t o f s u c h S e c u r i t i e s D e p o s i t o r y
t o r e f l e c t t h e t r a n s f e r o f t h e b e n e f i c i a l o w n e r s h i p i n t e r e s t i n s u c h B o n d t o t h e a c c o u n t o f t h e
T r u s t e e , o r t o t h e a c c o u n t o f a P a r t i c i p a n t o f s u c h S e c u r i t i e s D e p o s i t o r y a c t i n g o n b e h a l f o f t h e
T r u s t e e . W i t h r e s p e c t t o a n y B o n d t h a t i s n o t r e g i s t e r e d i n b o o k - e n t r y f o r m w i t h a S e c u r i t i e s
D e p o s i t o r y , d e l i v e r y o f s u c h B o n d t o t h e T r u s t e e i n c o n n e c t i o n w i t h a n y o p t i o n a l o r m a n d a t o r y
t e n d e r f o r p u r c h a s e s h a l l b e e f f e c t e d b y p h y s i c a l d e l i v e r y o f s u c h B o n d t o t h e T r u s t e e a t i t s
P r i n c i p a l O f f i c e , b y 1 : 0 0 p . m . ( N e w Y o r k C i t y t i m e ) o n t h e P u r c h a s e D a t e , a c c o m p a n i e d b y a n
i n s t r u m e n t o f t r a n s f e r t h e r e o f , i n a f o r m s a t i s f a c t o r y t o t h e T r u s t e e , e x e c u t e d i n b l a n k b y t h e
O H S W e s 1 : 2 6 0 6 9 2 4 4 7 . 6
A - 5
1 3 4
Holder thereof with the signature of such Holder guaranteed in accordance with the guidelines
set forth by one of the nationally recognized medallion signature programs.
If moneys sufficient to pay the Purchase Price of 2009 Series _ Bonds to be purchased
pursuant to an optional or mandatory tender shall be held by the Trustee on the applicable
Purchase Date, such 2009 Series _ Bonds shall be deemed to have been purchased for all
purposes of the Indenture, irrespective of whether or not such 2009 Series _ Bonds shall have
been delivered to the Trustee or transferred on the books of a Securities Depository for such
2009 Series _ Bonds, and neither the former Holder or Beneficial Owner of such 2009 Series _
Bonds nor any other person shall have any claim thereon, under the Indenture or otherwise, for
any amount other than the Purchase Price thereof.
Optional and Mandatory Redemption Provisions
While bearing interest at a Daily Rate or a Weekly Rate, this Bond shall be subject to
redemption prior to its stated maturity, at the option of the Commission, in whole or in part, in
Authorized Denominations, on any date, at a redemption price equal to the principal amount
thereof, plus accrued interest, if any, without premium.
While bearing interest at a Commercial Paper Rate, this Bond shall be subject to optional
redemption, at the option of the Commission, in whole or in part, on the day following the end of
any Commercial Paper Rate Period for this Bond, at a redemption price equal to the principal
amount thereof, plus accrued interest, if any, without premium.
While bearing interest at a Long -Term Rate, this Bond shall be subject to redemption, at
the option of the Commission, in whole or in part, on the day following the last day of any Long -
Term Rate Period for this Bond and on such other dates specified in the Conversion Notice with
respect to such Long -Term Rate Period, delivered with a Favorable Opinion of Bond Counsel, at
a redemption price equal to the principal amount thereof, plus accrued interest, if any, without
premium.
Unless the Commission obtains a Favorable Opinion of Bond Counsel and changes
redemption provisions as provided in the Indenture, any 2009 Series _ Bonds bearing interest at
a Fixed Rate are subject to redemption in whole or in part (and if in part, in such order of
maturity and Mandatory Sinking Account Payment dates as the Commission shall specify and,
within a maturity of Mandatory Sinking Account Payment date, by lot or by such other method
as the Trustee determines to be fair and reasonable and in Authorized Denominations), at the
option of the Commission, on the dates and at such redemption prices as provided in the
Indenture.
Except as otherwise provided in the Indenture, the 2009 Series _ Bonds that are Term
Bonds shall be subject to mandatory redemption prior to their stated maturity, in part, from
Mandatory Sinking Account Payments required by and as specified in the Indenture, at a
redemption price equal to the principal amount thereof, plus accrued interest to the redemption
date, without premium, on June 1, 20 and on each June 1 thereafter.
OHS Wes1:260692447.6
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Mandatory Tender and Purchase at Direction of Commission
On each date on which this Bond is subject to redemption at the option of the
Commission, this Bond is also subject to mandatory tender for purchase by the Commission, in
whole or in part, at a purchase price equal to the amount that would be payable upon the
redemption of this Bond at the option of the Commission on such date. Notice of such
mandatory tender for purchase shall be given by mail not more than 90 days nor less than 10
days before the date of purchase (the "Optional Purchase Date"). Such notice may be
conditional and if conditional notice is given and the Trustee does not have sufficient funds
available on the Optional Purchase Date to pay the purchase price of the 2009 Series _ Bonds
(the "Optional Purchase Price") subject to mandatory tender for purchase on such Optional
Purchase Date, then such purchase shall be cancelled and the Commission shall be under no
obligation to purchase this Bond. If moneys sufficient to pay the Optional Purchase Price of the
2009 Series _ Bonds subject to mandatory tender for purchase are held by the Trustee on the
Optional Purchase Date, all 2009 Series _ Bonds subject to mandatory tender for purchase on
such Optional Purchase Date shall be deemed purchased by the Commission and neither the
former Holder or former Beneficial Owner of this Bond nor any other person shall have any
claim thereunder, under the Indenture or otherwise, for any amount other than the Optional
Purchase Price.
Amendments and Modifications
The rights and obligations of the Commission and of the Beneficial Owners, registered
Holders and registered Owners of the Bonds may be modified or amended at any time in the
manner, to the extent, and upon the terms provided in the Indenture, which provide, in certain
circumstances, for modifications and amendments without the consent of or notice to the
registered Holders of Bonds.
Transfer and Exchange Provisions
This Bond is transferable or exchangeable as provided in the Indenture, only upon the
bond registration books maintained by the Trustee, by the registered Holder hereof, or by his or
her duly authorized attomey, upon surrender of this Bond at the Principal Office of the Trustee,
together with a written instrument of transfer satisfactory to the Trustee duly executed by the
registered Holder or his or her duly authorized attorney, and thereupon a new Bond or Bonds of
the same series, maturity and in the same aggregate principal amount, shall be issued to the
transferee in exchange therefor as provided in the Indenture, upon payment of any charges
therein prescribed.
Persons Deemed Holders
The person in whose name this Bond is registered shall be deemed and regarded as the
absolute Holder hereof for all purposes, including receiving payment of, or on account of, the
principal, Purchase Price or Optional Purchase Price hereof and any redemption premium and
interest due hereon.
It is hereby certified and recited that any and all acts, conditions and things required to
exist, to happen and to be performed, precedent to and in the incurring of the indebtedness
OHS Wesc260692447.6
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136
evidenced by this Bond, and in the issuing of this Bond, exist, have happened and have been
performed in due time, form and manner, as required by the Constitution and statutes of the State
of California and the Act, and that this Bond, together with all other indebtedness of the
Commission payable out of Revenue, is within every debt and other limit prescribed by the
Constitution and statutes of the State of California and the Act.
This Bond shall not be entitled to any benefit under the Indenture, or become valid or
obligatory for any purpose, until the certificate of authentication hereon endorsed shall have been
manually signed by the Trustee.
OHS Wesc260692447.6
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I N W I T N E S S W H E R E O F t h e R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n h a s c a u s e d
t h i s B o n d t o b e e x e c u t e d i n i t s n a m e a n d o n i t s b e h a l f b y t h e m a n u a l o r f a c s i m i l e s i g n a t u r e o f i t s
d u l y a u t h o r i z e d r e p r e s e n t a t i v e s a l l a s o f t h e I s s u e D a t e s e t f o r t h a b o v e .
( S e a l )
A t t e s t :
R I V E R S I D E C O U N T Y
T R A N S P O R T A T I O N C O M M I S S I O N
B y :
C h a i r o f t h e B o a r d o f C o m m i s s i o n e r s
A u d i t o r - C o n t r o l l e r
[ F O R M O F C E R T I F I C A T E O F A U T H E N T I C A T I O N ]
T h i s B o n d i s o n e o f t h e 2 0 0 9 S e r i e s B o n d s d e s c r i b e d i n t h e w i t h i n m e n t i o n e d
I n d e n t u r e a n d w a s a u t h e n t i c a t e d o n t h e d a t e s e t f o r t h b e l o w .
D a t e o f A u t h e n t i c a t i o n :
O H S W e s t : 2 6 0 6 9 2 4 4 7 . 6
U . S . B A N K N A T I O N A L A S S O C I A T I O N , a s
T r u s t e e
B y :
A u t h o r i z e d O f f i c e r
A - 9
1 3 8
[DTC LEGEND]
Unless this Bond is presented by an authorized representative of The Depository Trust
Company to the issuer or its agent for registration of transfer, exchange or payment, and any
Bond issued is registered in the name of Cede & Co. or such other name as requested by an
authorized representative of The Depository Trust Company and any payment is made to Cede &
Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
BY OR TO ANY PERSON IS WRONGFUL since the registered Owner hereof, Cede & Co., has
an interest herein.
[FORM OF ASSIGNMENT]
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto
(Please Print or Type Name and Address of Assignee)
PLEASE INSERT SOCIAL SECURITY OR OTHER
TAX IDENTIFICATION NUMBER OF ASSIGNEE
the within bond and all rights thereunder, and hereby irrevocably constitutes and appoint
to transfer the within Bond on the books kept for registration thereof with full power of
substitution in the premises.
Dated:
Signature:
(Signature of Assignor)
Notice: The signature on this assignment must
correspond with the name of the registered Holder
as it appears upon the face of the within Bond in
every particular without alteration or enlargement or
any change whatsoever.
SIGNATURE GUARANTEED:
Notice: Signature must be guaranteed by an
eligible guarantor firm.
OHS West:260692447.6
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INDEX TO EXHIBITS
EXHIBIT B
NOTICE ADDRESSES
To the Commission:
Riverside County Transportation Commission
Street Address:
4080 Lemon Street, 3`d Floor
Riverside, Califomia 92501
Mailing Address:
P.O. Box 12008
Riverside, California 92502
Attention: Chief Financial Officer
Telephone: (951) 787-7141
Fax: (951) 787-7920
To the 2009 Liquidity Provider:
Attention:
Telephone:
Fax:
OHS Wesc260692447.6
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B-1
To the Trustee:
U.S. Bank National Association
633 West Fifth Street, 24th Floor
Los Angeles, Califomia 90071
Attention: Corporate Trust Division
Telephone: (213) 615-6023
Fax: (213)615-6197
To the Rating Agencies:
Standard & Poor's Ratings Services
55 Water Street, 38th Floor
New York, New York 10041
Telephone No.: 212-438-2000
Facsimile No.: 212-438-2157
pubfin_structured@standardandpoors.com
Moody's Investors Service
MSPG Surveillance
7 World Trade Center, 25th Floor
250 Greenwich Street
New York, New York 10007
Fitch Ratings
One State Street Plaza
New York, New York 10004
140
ATTACHMENT 4
Hawkins Delafield & Wood LLP
Draft of 8-4-09
$[PAR AMOUNT]
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
SALES TAX REVENUE BONDS
(LIMITED TAX BONDS)
2009 SERIES A, 2009 SERIES B AND 2009 SERIES C
BOND PURCHASE AGREEMENT
[Purchase Date]
Riverside County Transportation Commission
P.O. Box 12008
Riverside, California 92502
Ladies and Gentlemen:
The undersigned, Barclays Capital Inc., as representative (the "Representative"), acting
on behalf of itself, E.J. De La Rosa & Co. Inc. and Backstrom McCarly Berry & Co., LLC
(collectively, the "Underwriters"), offers to enter into this Bond Purchase Agreement (the
"Purchase Agreement") with the Riverside County Transportation Commission (the
"Commission"), for the purchase by the Underwriters of the Sales Tax Revenue Bonds (Limited
Tax Bonds), 2009 Series A (the "Series A Bonds"), 2009 Series B (the "Series B Bonds") and
2009 Series C (the "Series C Bonds," and together with the Series A Bonds and the Series B
Bonds, the "Bonds"), to be issued by the Commission and authenticated by U.S. Bank National
Association, a national banking association, Los Angeles, California, as trustee (the "Trustee")
under that certain Indenture, dated as of June 1, 2008 between the Commission and the Trustee
(the "Original Indenture"), as supplemented by the First Supplemental Indenture, dated as of
June 1, 2008 (the "First Supplemental Indenture"), and the Second Supplemental Indenture,
dated as of October 1, 2009 (the "Second Supplemental Indenture"). The Original Indenture, the
First Supplemental Indenture and the Second Supplemental Indenture are collectively referred to
herein as the "Indenture." The offer made hereby is subject to its written acceptance by the
Commission, and delivery of an executed counterpart of this Purchase Agreement to us at or
before 11:59 p.m., Pacific Standard Time, on the date hereof, and, if not so accepted, will be
subject to withdrawal by the Underwriters upon notice from the Representative delivered to the
Commission's Executive Director at any time before acceptance. Upon acceptance, this
Purchase Agreement shall be in full force and effect in accordance with its terms and shall be
binding upon the Commission and the Underwriters. All capitalized terms used herein and not
otherwise defined shall have the meanings given to such terms in the Indenture.
The proceeds of the Bonds will be used to (i) refund all of the Commission's Sales Tax
Revenue Bonds (Limited Tax Bonds) Series 2008, currently outstanding in the aggregate
principal amount of $126,395,000, (ii) retire a portion of the Commission's outstanding
Commercial Paper Notes (Limited Tax Bonds), Series A and Series B in the outstanding
principal amount of $ , (iii) fund a portion of the reserve fund for the Bonds, and (iv)
pay costs of issuance of the Bonds.
56350.3 033083 AGMT
141
1. On the basis of the representations, warranties and covenants and upon the terms
and conditions set forth in this Purchase Agreement, the Underwriters hereby agree to purchase
and the Commission hereby agrees to issue and cause the Trustee to authenticate and deliver to
the Underwriters all (but not less than all) of the Bonds in the aggregate principal amount of
$[Par Amount]. The Bonds shall be dated the Closing Date. The Underwriters agree to purchase
the Bonds at the aggregate purchase price of $[Purchase Price] (consisting of the aggregate
principal amount of the Bonds less $ Underwriters' discount). The Bonds shall be
substantially in the form described in the Indenture, and shall be issued and secured under the
provisions of and shall be payable and subject to redemption as provided in the Indenture. The
initial Weekly Rate on the Bonds shall be %.
The Bonds shall be special limited obligations of the Commission payable from
Revenues. The Sales Tax Revenues of the Commission are pledged to the payment of the
principal of, interest and premium, if any, on the Bonds as provided in the Indenture.
2. The Underwriters have designated the undersigned as their representative. The
undersigned represents that it has been duly authorized by the Underwriters to execute this
Purchase Agreement. The Underwriters agree to make an initial public offering of all of the
Bonds, at prices not in excess of the initial public offering yields or prices set forth on the cover
page of the Official Statement. Subsequent to the initial public offering, the Underwriters
reserve the right to change the public offering prices (or yields) as they deem necessary in
connection with the marketing of the Bonds, provided that the Underwriters shall not change the
initial interest rate on the Bonds. The Bonds may be offered and sold to certain dealers at prices
lower than such initial public offering prices.
3. The Commission delivered to the Underwriters a final Official Statement, dated
, 2009 (the "Official Statement"), executed on behalf of the Commission by an
authorized representative of the Commission, in sufficient quantities as the Underwriters
required in order to meet potential customer requests for copies of the Official Statement. The
Official Statement, including the cover page, the appendices thereto and all information
incorporated therein by reference is hereinafter referred collectively to as the "Official
Statement." The Commission hereby authorizes the Underwriters to use and distribute the
Official Statement and all other documents, certificates and statements furnished by the
Commission to the Underwriters in connection with the transactions contemplated by this
Purchase Agreement, in connection with the offer and sale of the Bonds.
The Representative agrees to (1) provide the Commission with final pricing information
on the Bonds on a timely basis, (2) disseminate to the Underwriters copies of the final Official
Statement, including any supplements prepared by the Commission, and (3) promptly file a copy
of the final Official Statement, including any supplements prepared by the Commission, with a
nationally recognized municipal securities information repository.
4. The Closing. At 8:00 o'clock a.m., California time, on , 2009, or at
such other time or on such other date as the Commission and the Representative may agree (the
"Closing Date"), the Commission shall deliver, or cause to be delivered the Bonds in book -entry
form through the Trustee via the F.A.S.T. delivery book -entry system of The Depository Trust
Company ("DTC") on behalf of the Underwriters. Concurrently with the delivery of the Bonds to
2
56350.3 033083 AGMT
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142
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t h e U n d e r w r i t e r s , t h e C o m m i s s i o n w i l l d e l i v e r t h e d o c u m e n t s h e r e i n a f t e r m e n t i o n e d a t t h e
o f f i c e s o f O r r i c k , H e r r i n g t o n & S u t c l i f f e L L P , S a n F r a n c i s c o , C a l i f o r n i a ( " B o n d C o u n s e l " ) o r
a n o t h e r p l a c e t o b e m u t u a l l y a g r e e d u p o n b y t h e C o m m i s s i o n a n d t h e R e p r e s e n t a t i v e . T h e
R e p r e s e n t a t i v e , o n b e h a l f o f t h e U n d e r w r i t e r s , w i l l a c c e p t s u c h d e l i v e r y a n d p a y t h e a g g r e g a t e
p u r c h a s e p r i c e s e t f o r t h i n p a r a g r a p h 1 h e r e o f , i n i m m e d i a t e l y a v a i l a b l e f u n d s t o o r o n t h e o r d e r
o f t h e C o m m i s s i o n . T h i s p a y m e n t f o r a n d d e l i v e r y o f t h e B o n d s , t o g e t h e r w i t h t h e d e l i v e r y o f t h e
a f o r e m e n t i o n e d d o c u m e n t s , i s h e r e i n c a l l e d t h e " C l o s i n g . "
T h e C o m m i s s i o n r e p r e s e n t s , w a r r a n t s a n d c o v e n a n t s t o t h e U n d e r w r i t e r s ( a n d i t s h a l l b e a
c o n d i t i o n o f t h e o b l i g a t i o n o f t h e U n d e r w r i t e r s t o p u r c h a s e a n d a c c e p t d e l i v e r y o f t h e B o n d s )
t h a t t h e r e p r e s e n t a t i o n s a n d w a r r a n t i e s c o n t a i n e d h e r e i n s h a l l b e t r u e a n d c o r r e c t o n t h e d a t e
h e r e o f a n d a t t h e C l o s i n g D a t e , a s i f m a d e o n a n d a t t h e C l o s i n g . T h e C o m m i s s i o n s o r e p r e s e n t s
a n d w a r r a n t s t h a t :
( a ) t h e C o m m i s s i o n i s , a n d w i l l b e o n t h e d a t e o f C l o s i n g , a c o u n t y
t r a n s p o r t a t i o n c o m m i s s i o n o r g a n i z e d a n d e x i s t i n g u n d e r t h e l a w s o f t h e S t a t e , w i t h f u l l
l e g a l r i g h t , p o w e r a n d a u t h o r i t y t o c a u s e t h e e x e c u t i o n , s a l e a n d d e l i v e r y o f t h e B o n d s , t o
e x e c u t e , d e l i v e r a n d p e r f o r m i t s o b l i g a t i o n s u n d e r t h i s P u r c h a s e A g r e e m e n t , t h e
C o n t i n u i n g D i s c l o s u r e A g r e e m e n t a n d t h e I n d e n t u r e ( c o l l e c t i v e l y , t h e " C o m m i s s i o n ' s
D o c u m e n t s " ) a n d t o c a r r y o u t a n d c o n s u m m a t e a l l o t h e r t r a n s a c t i o n s c o n t e m p l a t e d b y
e a c h o f t h e a f o r e s a i d a n d t o e x e c u t e a n d d e l i v e r t h e O f f i c i a l S t a t e m e n t ;
( b ) b y a l l n e c e s s a r y o f f i c i a l a c t i o n , t h e C o m m i s s i o n h a s d u l y a d o p t e d
O r d i n a n c e 0 2 - 0 0 1 , i m p o s i n g t h e S a l e s T a x , w h i c h w a s a p p r o v e d b y a t l e a s t t w o - t h i r d s o f
t h e e l e c t o r s i n t h e C o u n t y v o t i n g o n t h e S a l e s T a x o n N o v e m b e r 5 , 2 0 0 2 ( t h e
" O r d i n a n c e " ) ;
( c ) t h e O f f i c i a l S t a t e m e n t ( e x c l u d i n g t h e r e f r o m t h e i n f o r m a t i o n u n d e r t h e
c a p t i o n " U n d e r w r i t i n g , " i n f o r m a t i o n c o n c e r n i n g D T C , t h e b o o k - e n t r y s y s t e m , t h e 2 0 0 9
L i q u i d i t y P r o v i d e r a n d t h e 2 0 0 9 L i q u i d i t y F a c i l i t y , a n d t h e i n f o r m a t i o n i n A p p e n d i c e s B
t h r o u g h E , a s t o w h i c h n o r e p r e s e n t a t i o n s o r w a r r a n t i e s a r e m a d e ) , i n t h e f o r m d e l i v e r e d
t o t h e U n d e r w r i t e r s , d o e s n o t , a s o f t h e d a t e d e l i v e r e d t o t h e U n d e r w r i t e r s , a n d w i l l n o t a t
t h e t i m e o f C l o s i n g ( i f s u p p l e m e n t e d o r a m e n d e d p r i o r t o t h e C l o s i n g , t h e n a s s o
s u p p l e m e n t e d o r a m e n d e d ) , c o n t a i n a n y u n t r u e s t a t e m e n t o f a m a t e r i a l f a c t , o r o m i t t o
s t a t e a m a t e r i a l f a c t n e c e s s a r y i n o r d e r t o m a k e t h e s t a t e m e n t s m a d e t h e r e i n , i n l i g h t o f
t h e c i r c u m s t a n c e s u n d e r w h i c h t h e y w e r e m a d e , n o t m i s l e a d i n g ;
( d ) w h e n d e l i v e r e d t o a n d p a i d f o r b y t h e U n d e r w r i t e r s o n t h e C l o s i n g D a t e i n
a c c o r d a n c e w i t h t h e p r o v i s i o n s o f t h i s P u r c h a s e A g r e e m e n t , t h e B o n d s w i l l h a v e b e e n
d u l y a u t h o r i z e d , e x e c u t e d a n d d e l i v e r e d a n d w i l l c o n s t i t u t e v a l i d a n d b i n d i n g l i m i t e d
o b l i g a t i o n s o f t h e C o m m i s s i o n i n c o n f o r m i t y w i t h a n d e n t i t l e d t o t h e b e n e f i t a n d s e c u r i t y
o f t h e I n d e n t u r e ;
( e ) t h e C o m m i s s i o n , b y a l l n e c e s s a r y o f f i c i a l a c t i o n p r i o r t o o r c o n c u r r e n t l y
w i t h t h e a c c e p t a n c e h e r e o f , h a s d u l y a u t h o r i z e d t h e e x e c u t i o n a n d d e l i v e r y o f t h e
C o m m i s s i o n ' s D o c u m e n t s a n d t h e O f f i c i a l S t a t e m e n t , a n d t h e C o m m i s s i o n ' s D o c u m e n t s ,
w h e n e x e c u t e d a n d d e l i v e r e d , a s s u m i n g d u e a u t h o r i z a t i o n , e x e c u t i o n a n d d e l i v e r y b y t h e
3
5 6 3 5 0 3 0 3 3 0 8 3 A G M T
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other parties thereto, will constitute the legally valid and binding obligations of the
Commission enforceable in accordance with their terms, except as enforcement may be
limited by bankruptcy, insolvency, reorganization, moratorium or similar laws or
equitable principles relating to or affecting creditors' rights generally, the exercise of
judicial discretion and the limitations on legal remedies against public entities in the
State;
(0 the Commission is not in breach or default under any applicable law or
administrative regulation of the State of California or the United States of America or any
applicable judgment, decree, resolution, contract or other instrument or any agreement to
which the Commission is a party or is otherwise subject the breach of which would
materially affect its ability to perform its obligations under the Commission's
Documents, and the execution and delivery of the Commission's Documents and
compliance with the provisions thereof will not in any material respect conflict with or
constitute a material breach of or default under any applicable law, regulation, decree,
writ, order or injunction or any agreement, resolution, contract or other instrument or any
agreement to which the Commission is subject and which is material to the
Commission's ability to perform its obligations under the Commission's Documents, nor
will such execution, delivery and compliance result in the creation or imposition of any
lien, charge or other security interest or encumbrance of any nature whatsoever upon any
of the properties or assets of the Commission under the terms of any such law,
administrative regulation, judgment, decree, loan agreement, indenture, bond, note,
resolution, agreement or other instrument, except as provided in the Indenture;
(g) at the Closing, the Commission will be in compliance in all respects with
the covenants and agreements contained in the Commission's Documents, and no event
of default and no event which, with the lapse of time or giving of notice, or both, would
constitute an event of default thereunder shall have occurred and be continuing;
(h) as of the date hereof, no action, suit, proceeding, inquiry or investigation
at law or in equity before or by any court, government agency, public board or body, is
pending or, to the best of the Commission's knowledge, threatened against the
Commission: (i) in any way affecting the existence of the Commission or in any way
challenging the respective powers of the several offices or the titles of the officials of the
Commission to such offices; or (ii) affecting or seeking to prohibit, restrain or enjoin the
issuance, sale or delivery of any of the Bonds, the application of the proceeds of the sale
of the Bonds, the proceedings authorizing and approving the Sales Tax, the levy or
collection of the Sales Tax, or in any way contesting or affecting, as to the Commission,
the validity or enforceability of the Act, the proceedings authorizing the Sales Tax,
Resolution No. 09-017 of the Commission adopted on August 12, 2009 (the "Bond
Resolution") the Bonds or the Commission's Documents or contesting the powers of the
Commission or its authority with respect to issuance or delivery of the Bonds or the
execution and delivery of the Commission's Documents or contesting the power or
authority to levy the Sales Tax or contesting the completeness or accuracy of the Official
Statement, or in any way contesting or challenging the consummation of the transactions
contemplated hereby or thereby or which might materially adversely affect the ability of
the Commission to perform and satisfy its obligations under the Commission's
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"
"
"
D o c u m e n t s o r t h e B o n d s ; n o r t o t h e b e s t o f t h e C o m m i s s i o n ' s k n o w l e d g e i s t h e r e a n y
b a s i s f o r a n y s u c h a c t i o n , s u i t , p r o c e e d i n g , i n q u i r y o r i n v e s t i g a t i o n , w h e r e i n a n
u n f a v o r a b l e d e c i s i o n , r u l i n g o r f i n d i n g w o u l d m a t e r i a l l y a d v e r s e l y a f f e c t t h e A c t , t h e
p r o c e e d i n g s a u t h o r i z i n g t h e S a l e s T a x o r t h e C o m m i s s i o n ' s D o c u m e n t s o r t h e
p e r f o r m a n c e b y t h e C o m m i s s i o n o f i t s o b l i g a t i o n s t h e r e u n d e r , o r t h e a u t h o r i z a t i o n ,
e x e c u t i o n , d e l i v e r y o r p e r f o r m a n c e b y t h e C o m m i s s i o n o f t h e B o n d s o r t h e
C o m m i s s i o n ' s D o c u m e n t s ;
( i ) t h e C o m m i s s i o n w i l l f u r n i s h s u c h i n f o r m a t i o n , e x e c u t e s u c h i n s t r u m e n t s
a n d t a k e s u c h o t h e r a c t i o n n o t i n c o n s i s t e n t w i t h l a w i n c o o p e r a t i o n w i t h t h e U n d e r w r i t e r s
w h i c h t h e U n d e r w r i t e r s m a y r e a s o n a b l y r e q u e s t i n o r d e r ( i ) t o q u a l i f y t h e B o n d s f o r o f f e r
a n d s a l e u n d e r t h e B l u e S k y o r o t h e r s e c u r i t i e s l a w s a n d r e g u l a t i o n s o f s u c h s t a t e s a n d
o t h e r j u r i s d i c t i o n s o f t h e U n i t e d S t a t e s a s t h e U n d e r w r i t e r s m a y d e s i g n a t e ; a n d ( i i ) t o
d e t e r m i n e t h e e l i g i b i l i t y o f t h e B o n d s f o r i n v e s t m e n t u n d e r t h e l a w s o f s u c h s t a t e s a n d
o t h e r j u r i s d i c t i o n s , a n d w i l l c o n t i n u e t o t a k e s u c h a c t i o n s o l o n g a s r e q u i r e d f o r
d i s t r i b u t i o n o f t h e B o n d s ; p r o v i d e d , h o w e v e r , t h a t i n n o e v e n t s h a l l t h e C o m m i s s i o n b e
r e q u i r e d t o t a k e a n y a c t i o n w h i c h w o u l d s u b j e c t i t t o s e r v i c e o f p r o c e s s i n a n y j u r i s d i c t i o n
i n w h i c h i t i s n o t n o w s o s u b j e c t o r b e r e q u i r e d t o r e g i s t e r a s a d e a l e r o r b r o k e r o r q u a l i f y
t o d o b u s i n e s s a s a f o r e i g n c o r p o r a t i o n o r b e s u b j e c t t o a n y o t h e r s i m i l a r r e q u i r e m e n t s
d e e m e d b y t h e C o m m i s s i o n t o b e u n d u l y b u r d e n s o m e ;
a ) a l l a p p r o v a l s , c o n s e n t s a n d o r d e r s o f a n y g o v e r n m e n t a l a u t h o r i t y o r
a g e n c y h a v i n g j u r i s d i c t i o n i n t h e m a t t e r s w h i c h w o u l d c o n s t i t u t e a c o n d i t i o n p r e c e d e n t t o
t h e d u e p e r f o r m a n c e b y t h e C o m m i s s i o n o f i t s o b l i g a t i o n s u n d e r t h e C o m m i s s i o n ' s
D o c u m e n t s h a v e b e e n d u l y o b t a i n e d o r m a d e , a n d a r e , a n d w i l l b e o n t h e d a t e o f C l o s i n g ,
i n f u l l f o r c e a n d e f f e c t ;
( k ) i f , s u b s e q u e n t t o t h e d a t e h e r e o f , a n d p r i o r t o t h e C l o s i n g , a n e v e n t o c c u r s ,
o r i n f o r m a t i o n b e c o m e s k n o w n , a f f e c t i n g t h e C o m m i s s i o n w h i c h i s m a t e r i a l l y a d v e r s e f o r
t h e p u r p o s e f o r w h i c h t h e O f f i c i a l S t a t e m e n t , a s t h e n s u p p l e m e n t e d o r a m e n d e d i s t o b e
u s e d a n d s u c h e v e n t i s n o t d i s c l o s e d i n t h e O f f i c i a l S t a t e m e n t , t h e C o m m i s s i o n s h a l l
n o t i f y t h e R e p r e s e n t a t i v e t h e r e o f , a n d i f i n t h e m u t u a l o p i n i o n o f t h e C o m m i s s i o n a n d t h e
R e p r e s e n t a t i v e s u c h e v e n t r e q u i r e s a s u p p l e m e n t o r a m e n d m e n t t o t h e O f f i c i a l S t a t e m e n t ,
t h e C o m m i s s i o n w i l l s u p p l e m e n t o r a m e n d t h e O f f i c i a l S t a t e m e n t i n a f o r m a n d m a n n e r
a p p r o v e d b y t h e R e p r e s e n t a t i v e ;
( 1 ) f o r a p e r i o d o f 2 5 d a y s s u b s e q u e n t t o t h e C l o s i n g D a t e ( t h e " D e l i v e r y
P e r i o d " ) , i f a n e v e n t o c c u r s w h i c h m i g h t o r w o u l d c a u s e t h e O f f i c i a l S t a t e m e n t , a s t h e n
s u p p l e m e n t e d o r a m e n d e d , t o c o n t a i n a n y u n t r u e s t a t e m e n t o f a m a t e r i a l f a c t , o r o m i t t o
s t a t e a n y m a t e r i a l f a c t n e c e s s a r y t o m a k e t h e s t a t e m e n t s t h e r e i n , i n t h e l i g h t o f t h e
c i r c u m s t a n c e s u n d e r w h i c h t h e y w e r e m a d e , n o t m i s l e a d i n g , t h e C o m m i s s i o n s h a l l
p r o m p t l y n o t i f y t h e R e p r e s e n t a t i v e t h e r e o f a n d i f , i n t h e o p i n i o n o f t h e R e p r e s e n t a t i v e ,
s u c h e v e n t r e q u i r e s t h e p r e p a r a t i o n a n d p u b l i c a t i o n o f a s u p p l e m e n t o r a m e n d m e n t t o t h e
O f f i c i a l S t a t e m e n t , t h e C o m m i s s i o n s h a l l p r e p a r e a n d d e l i v e r t o t h e U n d e r w r i t e r s ( a t t h e
C o m m i s s i o n ' s e x p e n s e f o r 2 5 d a y s f r o m t h e d a t e o f t h e C l o s i n g ) , a s m a n y c o p i e s o f a n
a m e n d m e n t o r s u p p l e m e n t w h i c h w i l l c o r r e c t s u c h s t a t e m e n t o r o m i s s i o n a s t h e
5
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Underwriters may reasonably request. During the Delivery Period, the Commission shall
furnish such information as the Representative may from time to time reasonably request;
(m) if the Official Statement is amended or supplemented pursuant to
paragraph 4(k) hereof, at the time of each supplement or amendment thereto and (unless
subsequently again supplemented or amended pursuant to such paragraph) at all times
subsequent thereto up to and including the Closing Date, the Official Statement as so
supplemented or amended (excluding therefrom the information under the caption
"Underwriting", information concerning DTC, the book -entry system, and the
information in Appendices B through E, as to which no representations or warranties are
made) will not contain any untrue statement of a material fact or omit to state a material
fact necessary to make the statements therein, in the light of the circumstances under
which they were made, not misleading;
(n) after the Closing, the Commission will not participate in the issuance of
any amendment of or supplement to the Official Statement, to which, after being
furnished with a copy, the Representative shall reasonably object in writing and which
shall be disapproved by Hawkins Delafield & Wood LLP ("Underwriters' Counsel") or
Bond Counsel; and
(o) between the date of this Purchase Agreement and the date of Closing,
except for issuances of commercial paper under the Commission's existing commercial
paper program, the Commission will not, without the prior written consent of the
Representative, except as disclosed in the Official Statement and except in the course of
normal business operations of the Commission, offer or issue any bonds, notes or other
obligations for borrowed money, or incur any material liabilities, direct or contingent.
5. The Representative, on behalf of itself and the Underwriters, has entered into this
Purchase Agreement in reliance upon the representations and warranties of the Commission
contained herein and the representations and warranties to be contained in the documents and
instruments to be delivered at the Closing and upon the performance by the Commission of its
obligations both on and as of the date hereof and as of the Closing Date. Accordingly, the
Underwriters' obligations under this Purchase Agreement to purchase, to accept delivery of and
to pay for the Bonds shall be subject, at the sole option of the Representative, to the accuracy in
all material respects of the representations and warranties of the Commission contained herein as
of the date hereof and as of the Closing Date, to the accuracy in all material respects of the
statements of the officers and other officials of the Commission made in any certificate or other
document furnished pursuant to the provisions hereof, to the performance by the Commission of
its obligations to be performed hereunder and under such documents and instruments at or prior
to the Closing Date, and to the following additional conditions:
(a) Prior to the Closing, the Commission's Documents shall have been duly
authorized, executed and delivered and none of such documents shall have been
amended, modified or repealed, except to the extent to which the Representative has
given its written consent;
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(b) At the time of Closing all official action of the Commission related to the
Commission's Documents, and the sale of the Bonds, shall be in frill force and effect and
shall not have been amended, modified, supplemented or repealed in any material
respect;
(c) At the time of Closing the Commission shall have made timely payment of
principal and/or interest when due on all of its respective outstanding bonds, notes or
other obligations;
(d) As of the date hereof and at Closing, trading of securities in general shall
not have been suspended on any national securities exchange; nor shall any proceeding
be pending or threatened by the Securities Exchange Commission against the
Commission;
(e) Subsequent to the date hereof, up to and including the Closing, there shall
not have occurred any change in or particularly affecting the Commission, the Act, the
Ordinance, the Sales Tax, the Sales Tax Revenues, the Bonds or the Commission's
Documents as the foregoing matters are described in the Official Statement, which in the
reasonable professional judgment of the Underwriters materially impairs the investment
quality of the Bonds;
(f) Subsequent to the date hereof, up to and including the Closing, the
Califomia State Board of Equalization ("BOE") shall not have suspended or advised the
Commission of suspension of the collection of the Sales Tax or the escrow of any
proceeds thereof by the BOE, and counsel to the Commission shall not have been advised
of the suspension of the collection of the Sales Tax or the escrow of any proceeds thereof
by the BOE or have any question as to the validity of the Sales Tax;
(g) The Commission shall perform, or have performed at or prior to the time
of the Closing, all of its obligations required under or specified in the Commission's
Documents, as amended to the date of Closing, to be performed at or prior to the Closing;
(h) At or prior to the Closing, the Underwriters shall receive, among other
items, the following, in each case reasonably satisfactory in form and substance to the
Representative and Underwriters' Counsel:
(i)
Executed copies of each of the Commission's Documents;
(ii) The approving opinion of Bond Counsel, substantially in the form
attached to the Official Statement as Appendix E;
(iii) A supplemental opinion of Bond Counsel, addressed to the Commission
and the Underwriters, stating the Underwriters may rely upon the opinion referred to in
subparagraph (ii) hereof as though addressed to them and to the following effect:
(A) The information contained in the Official Statement in the sections
entitled "THE 2009 BONDS," "SECURITY AND SOURCES OF PAYMENT FOR THE 2009
BONDS" (other than the information under the heading "Existing Swap Agreements"), "TAX
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56350.3 033083 AGMT
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MATTERS," "APPENDIX C - SUMMARY OF CERTAIN PROVISIONS OF THE
INDENTURE" and "APPENDIX E - PROPOSED FORM OF BOND COUNSEL OPINION"
insofar as such information purports to summarize certain provisions of the Bonds (except
information with respect to the pricing, as to which no opinion need be given), the Indenture and
such counsel's opinion relating to the tax exemption of interest on the Bonds, are accurate in all
material respects; and
(B) The Bonds are exempt from registration pursuant to the Securities
Act of 1933, as amended, and the Indenture is exempt from qualification pursuant to the Trust
Indenture Act of 1939, as amended;
(iv) The opinion of Fulbright & Jaworski L.L.P. ("Disclosure Counsel")
addressed to the Underwriters, to the effect that while they have not independently verified the
fairness, correctness and completeness of the statements and representations set forth in the
Official Statement or referred to therein or the financial statements and the appendices thereto, as
a result of their participation in the preparation of the Official Statement and their review of
certain documents referred to therein, nothing has come to their attention which gives them
reason to believe that the Official Statement or any amendment or supplement thereto as of their
respective issue dates, contains any untrue statement of a material fact or omits to state any
material fact necessary in order to make the statements contained therein, in light of the
circumstances under which they were made, not misleading (except for the financial statements
and other financial and statistical data included therein, including Appendices A, C, D and E
thereto, as to which no view need to be expressed);
(v) An opinion, dated the date of the Closing and addressed to the
Underwriters, of Best, Best & Krieger LLP, General Counsel to the Commission, to the effect
that: (i) the Commission is a county transportation commission duly organized under the laws of
the State; (ii) the resolution or resolutions of the Commission approving and authorizing the
execution and delivery of the Commission's Documents by the Commission (the "Resolutions")
were duly adopted at meetings of the Commission, which were called and held pursuant to law
and with all public notice required by law and at which a quorum was present and acting at the
time of adoption; (iii) to the best knowledge of such counsel, there is no action, suit, proceeding
or investigation at law or in equity before or by any court, public board or body, pending or
threatened against or affecting the Commission, to restrain or enjoining the enforcement of the
Commission's Documents or in any way contesting or affecting the validity of the Commission's
Documents; (iv) the execution and delivery of the Commission's Documents by the
Commission, the adoption of the Resolutions, and compliance by the Commission with the
provisions of the foregoing, as appropriate, under the circumstances contemplated thereby, does
not and will not in any material respect conflict with or constitute on the part of the Commission
a breach or default under any agreement or other instrument to which the Commission is a party
or by which it is bound (and of which such counsel is reasonably aware) or any existing law,
regulation, court order or consent decree to which the Commission is subject; (v) the
Commission's Documents have been duly authorized, executed and delivered, by the
Commission and, assuming due authorization, execution and delivery by the other parties
thereto, the Commission's Documents constitute legal, valid and binding agreements of the
Commission, enforceable in accordance with their respective terms, subject in each case to laws
relating to bankruptcy, insolvency or other laws affecting the enforcement of creditors' rights
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"
g e n e r a l l y a n d t h e a p p l i c a t i o n o f e q u i t a b l e p r i n c i p l e s i f e q u i t a b l e r e m e d i e s a r e s o u g h t ; ( v i ) e x c e p t
a s d e s c r i b e d i n t h e O f f i c i a l S t a t e m e n t , n o a u t h o r i z a t i o n , a p p r o v a l , c o n s e n t , o r o t h e r o r d e r o f t h e
S t a t e o r a n y o t h e r g o v e r n m e n t a l a u t h o r i t y o r a g e n c y w i t h i n t h e S t a t e h a v i n g j u r i s d i c t i o n o v e r t h e
C o m m i s s i o n i s r e q u i r e d f o r t h e v a l i d a u t h o r i z a t i o n , e x e c u t i o n , d e l i v e r y a n d p e r f o r m a n c e b y t h e
C o m m i s s i o n o f t h e C o m m i s s i o n ' s D o c u m e n t s w h i c h h a s n o t b e e n o b t a i n e d ; a n d ( v i i ) w i t h o u t
h a v i n g u n d e r t a k e n t o d e t e r m i n e i n d e p e n d e n t l y t h e a c c u r a c y , c o m p l e t e n e s s o r f a i r n e s s o f t h e
s t a t e m e n t s c o n t a i n e d i n t h e O f f i c i a l S t a t e m e n t a n d b a s e d u p o n t h e i n f o r m a t i o n m a d e a v a i l a b l e t o
s u c h c o u n s e l i n t h e c o u r s e o f i t s p a r t i c i p a t i o n i n t h e p r e p a r a t i o n o f t h e O f f i c i a l S t a t e m e n t a s
c o u n s e l f o r t h e C o m m i s s i o n , n o t h i n g h a s c o m e t o s u c h c o u n s e l ' s a t t e n t i o n w h i c h w o u l d c a u s e
t h e m t o b e l i e v e t h a t t h e O f f i c i a l S t a t e m e n t ( e x c l u d i n g t h e r e f r o m t h e f i n a n c i a l s t a t e m e n t s a n d t h e
s t a t i s t i c a l d a t a i n c l u d e d i n t h e O f f i c i a l S t a t e m e n t , a s t o w h i c h n o o p i n i o n n e e d b e e x p r e s s e d ) , a s
o f t h e d a t e t h e r e o f a n d a s o f t h e C l o s i n g D a t e , c o n t a i n e d a n u n t r u e s t a t e m e n t o f a m a t e r i a l f a c t o r
o m i t t e d t o s t a t e a m a t e r i a l f a c t r e q u i r e d t o b e s t a t e d t h e r e i n o r n e c e s s a r y t o m a k e t h e s t a t e m e n t s
t h e r e i n , i n l i g h t o f t h e c i r c u m s t a n c e s u n d e r w h i c h t h e y w e r e m a d e , n o t m i s l e a d i n g ;
( v i ) a c e r t i f i c a t e o r c e r t i f i c a t e s , d a t e d t h e C l o s i n g D a t e , s i g n e d b y a d u l y
a u t h o r i z e d o f f i c i a l o f t h e C o m m i s s i o n t o t h e e f f e c t t h a t , t o t h e b e s t o f s u c h o f f i c i a l ' s k n o w l e d g e ,
( i ) t h e r e p r e s e n t a t i o n s a n d w a r r a n t i e s o f t h e C o m m i s s i o n c o n t a i n e d i n t h i s P u r c h a s e A g r e e m e n t
a r e t r u e a n d c o r r e c t i n a l l m a t e r i a l r e s p e c t s o n a n d a s o f t h e C l o s i n g D a t e w i t h t h e s a m e e f f e c t a s
i f m a d e o n t h e C l o s i n g D a t e ; ( i i ) n o e v e n t a f f e c t i n g t h e C o m m i s s i o n h a s o c c u r r e d s i n c e t h e d a t e
o f t h e O f f i c i a l S t a t e m e n t w h i c h h a s t h e e f f e c t o f c a u s i n g t h e O f f i c i a l S t a t e m e n t ( e x c l u d i n g t h e
i n f o r m a t i o n u n d e r t h e c a p t i o n " U n d e r w r i t i n g , " i n f o r m a t i o n c o n c e r n i n g D T C , t h e b o o k - e n t r y
s y s t e m , t h e 2 0 0 9 L i q u i d i t y P r o v i d e r a n d t h e 2 0 0 9 L i q u i d i t y F a c i l i t y , a n d t h e i n f o r m a t i o n i n
A p p e n d i c e s B t h r o u g h E ) t o c o n t a i n a n y u n t r u e s t a t e m e n t o f a m a t e r i a l f a c t o r t o o m i t t o s t a t e a
m a t e r i a l f a c t n e c e s s a r y i n o r d e r t o m a k e t h e s t a t e m e n t s a n d i n f o r m a t i o n t h e r e i n , i n l i g h t o f t h e
c i r c u m s t a n c e s u n d e r w h i c h t h e y w e r e m a d e n o t m i s l e a d i n g ; ( i i i ) t h e C o m m i s s i o n i s d u l y
o r g a n i z e d a n d e x i s t i n g u n d e r t h e p r o v i s i o n s o f t h e A c t ; ( i v ) t h e C o m m i s s i o n h a s , a n d a t t h e t i m e
o f t h e C l o s i n g w i l l h a v e , f u l l l e g a l r i g h t , p o w e r a n d a u t h o r i t y ( A ) t o e x e c u t e a n d e n t e r i n t o t h e
C o m m i s s i o n ' s D o c u m e n t s , ( B ) t o a d o p t t h e B o n d R e s o l u t i o n , ( C ) t o s e l l a n d d e l i v e r t h e B o n d s t o
t h e U n d e r w r i t e r s p u r s u a n t t o t h e C o n s t i t u t i o n a n d l a w s o f t h e S t a t e , ( D ) t o i s s u e t h e B o n d s , ( E ) t o
c a u s e t h e S a l e s T a x t o b e l e v i e d a n d c o l l e c t e d , ( F ) t o p l e d g e t h e S a l e s T a x R e v e n u e s t o t h e
p a y m e n t o f t h e B o n d s a n d ( G ) t o c a r r y o u t a n d t o c o n s u m m a t e t h e t r a n s a c t i o n s c o n t e m p l a t e d b y ,
a n d t o p e r f o r m a l l o f i t s o b l i g a t i o n s u n d e r , t h e B o n d R e s o l u t i o n , t h e C o m m i s s i o n ' s D o c u m e n t s ,
t h e B o n d s a n d t h e O f f i c i a l S t a t e m e n t ; ( v ) t h e C o m m i s s i o n h a s ( A ) d u l y a u t h o r i z e d a n d a p p r o v e d
t h e O f f i c i a l S t a t e m e n t , ( B ) d u l y a u t h o r i z e d a n d a p p r o v e d t h e e x e c u t i o n a n d d e l i v e r y o f , a n d
p e r f o r m a n c e b y t h e C o m m i s s i o n o f i t s o b l i g a t i o n s u n d e r , t h e B o n d s a n d t h e C o m m i s s i o n ' s
D o c u m e n t s , ( C ) d u l y a d o p t e d t h e B o n d R e s o l u t i o n a n d ( D ) d u l y a u t h o r i z e d a n d a p p r o v e d t h e u s e
o f t h e p r o c e e d s o f t h e s a l e o f t h e B o n d s , a s c o n t e m p l a t e d b y t h e O f f i c i a l S t a t e m e n t ; ( v i ) a t o r
p r i o r t o t h e t i m e a n d d a t e t h e C l o s i n g , t h e B o n d s w i l l h a v e b e e n d u l y e x e c u t e d a n d d e l i v e r e d b y
t h e C o m m i s s i o n , a n d e a c h o f t h e m a n d t h e B o n d R e s o l u t i o n a n d t h e C o m m i s s i o n ' s D o c u m e n t s
w i l l c o n s t i t u t e l e g a l , v a l i d a n d b i n d i n g o b l i g a t i o n s o f t h e C o m m i s s i o n e n f o r c e a b l e a g a i n s t t h e
C o m m i s s i o n i n a c c o r d a n c e w i t h t h e i r r e s p e c t i v e t e r m s , e x c e p t t o t h e e x t e n t t h a t t h e
e n f o r c e a b i l i t y m a y b e l i m i t e d b y b a n k r u p t c y , i n s o l v e n c y , a r r a n g e m e n t , m o r a t o r i u m o r o t h e r l a w s
a f f e c t i n g t h e r i g h t s o f c r e d i t o r s g e n e r a l l y , e q u i t a b l e r e m e d i e s , j u d i c i a l d i s c r e t i o n a n d t h e
l i m i t a t i o n s o n l e g a l r e m e d i e s a g a i n s t l o c a l t r a n s p o r t a t i o n a u t h o r i t i e s i n t h e S t a t e ; ( v i i ) t h e B o n d
R e s o l u t i o n , t h e C o m m i s s i o n ' s D o c u m e n t s a n d t h e B o n d s c o n f o r m i n a l l m a t e r i a l r e s p e c t s t o t h e
d e s c r i p t i o n s t h e r e o f i n t h e O f f i c i a l S t a t e m e n t ; ( v i i i ) t h e f i n a n c i a l d a t a r e l a t i n g t o t h e C o m m i s s i o n
9
5 6 3 5 0 . 3 0 3 3 0 8 3 A G M T
1 4 9
and the financial statements of the Commission contained in the Official Statement present fairly
the financial condition and results of the operation of the Commission at the dates and for the
periods therein specified and such financial data relating to the Commission and the financial
statements of the Commission contained in the Official Statement are presented in confomvty
with generally accepted accounting principles applied on a basis substantially consistent with
that of the audited financial statements of the Commission except as otherwise specifically noted
in the Official Statement; (ix) no litigation of any nature is now pending or, to the best of the
Commission's knowledge, threatened in any court or before any governmental agency:
(A) restraining or enjoining, or seeking to restrain or enjoin, the issuance, sale, execution or
delivery of the Bonds; or (B) in any way contesting or affecting (1) the validity or enforceability
of the Bonds, or (2) any proceedings of or on behalf of the Commission taken with respect to the
issuance or sale of the Bonds, or (3) adoption of the Bond Resolution or the execution and
delivery of the Commission's Document, or (4) the levy and collection of the Sales Tax, or
(5) the pledge of Sales Tax Revenues effected by the Indenture, as described in the Official
Statement, or (6) the proceedings authorizing and approving the Sales Tax or the levy or
collection of the Sales Tax, or (7) the existence or powers of the Commission; or (C) in any
manner questioning (1) the proceedings or authority for the issuance of the Bonds, or (2) any
provision made or authorized for the payment of the Bonds, or (3) the existence or operations of
the Commission, or (4) the power of the Commission to issue the Bonds, or (5) the power of the
Commission to undertake any other transactions necessary in connection with this proposed
financing; or (D) which would have a material adverse effect upon the operations of the
Commission relating to the Bonds or to the contemplated use of the proceeds thereof; (x) none of
the Commission's proceedings or authority for the issuance, sale, execution and delivery of the
Bonds, or the execution and delivery of the Commission's Documents, or the adoption of the
Bond Resolution as described in the Official Statement has been repealed, modified, amended,
revoked or rescinded; (xi) no approval, permit, consent or authorization of any governmental or
public agency, authority or person having jurisdiction over the Commission not already obtained
and no proceedings not already had are required in connection with (A) the issuance and sale of
the Bonds, (B) the execution and delivery by the Commission of, or the performance by it of its
obligations under, the Bonds, the Commission's Documents and the Bond Resolution or
(C) except as contemplated by the Official Statement, the issuance and sale of the Bonds or the
application of the proceeds of the sale thereof; (xii) there is no material adverse change in the
condition or affairs of the Commission that would make it unreasonable for the Underwriters or
other purchasers of the Bonds to rely upon the Official Statement in connection with the resale of
the Bonds, and the Underwriters are hereby authorized to distribute copies of the Official
Statement in connection with the resale of the Bonds; and (xiii) the Commission has complied
with all the agreements and satisfied all the conditions on its part to be performed or satisfied at
or prior to the date of issuance of the Bonds with respect to the issuance of the Bonds;
(vii) A certificate, dated the Closing Date, signed by a duly authorized official
of the Trustee, that:
(A) the Trustee is a national banking association organized and
existing under and by virtue of the laws of the United States of America, having the full power
and being qualified to enter into and perform its duties under the Indenture and the Continuing
Disclosure Agreement (together, the "Trustee Documents");
10
56350.3 033083 AGMT
s
•
150
"
"
"
( B ) t h e T r u s t e e i s d u l y a u t h o r i z e d t o e n t e r i n t o t h e T r u s t e e D o c u m e n t s
a n d T r u s t e e h a s d u l y e x e c u t e d a n d d e l i v e r e d t h e T r u s t e e D o c u m e n t s ;
( C ) t h e e x e c u t i o n a n d d e l i v e r y o f t h e T r u s t e e D o c u m e n t s a n d
c o m p l i a n c e w i t h t h e p r o v i s i o n s o n t h e T r u s t e e ' s p a r t c o n t a i n e d t h e r e i n , w i l l n o t c o n f l i c t w i t h o r
c o n s t i t u t e a b r e a c h o f o r d e f a u l t u n d e r a n y l a w , a d m i n i s t r a t i v e r e g u l a t i o n , j u d g m e n t , d e c r e e , l o a n
a g r e e m e n t , i n d e n t u r e , b o n d , n o t e , r e s o l u t i o n , a g r e e m e n t o r o t h e r i n s t r u m e n t t o w h i c h T r u s t e e i s a
p a r t y o r i s o t h e r w i s e s u b j e c t ( e x c e p t t h a t n o r e p r e s e n t a t i o n , w a r r a n t y o r a g r e e m e n t i s m a d e w i t h
r e s p e c t t o a n y f e d e r a l o r s t a t e s e c u r i t i e s o r b l u e s k y l a w s o r r e g u l a t i o n s ) , n o r w i l l a n y s u c h
e x e c u t i o n , d e l i v e r y , a d o p t i o n o r c o m p l i a n c e r e s u l t i n t h e c r e a t i o n o r i m p o s i t i o n o f a n y l i e n ,
c h a r g e o r o t h e r s e c u r i t y i n t e r e s t o r e n c u m b r a n c e o f a n y n a t u r e w h a t s o e v e r u p o n a n y o f t h e
p r o p e r t i e s o r a s s e t s h e l d b y t h e T r u s t e e p u r s u a n t t o t h e T r u s t e e D o c u m e n t s u n d e r t h e t e r m s o f
a n y s u c h l a w , a d m i n i s t r a t i v e r e g u l a t i o n , j u d g m e n t , d e c r e e , l o a n a g r e e m e n t , i n d e n t u r e , b o n d ,
n o t e , r e s o l u t i o n , a g r e e m e n t o r o t h e r i n s t r u m e n t , e x c e p t a s p r o v i d e d b y t h e T r u s t e e D o c u m e n t s ;
( D ) t o t h e b e s t o f t h e k n o w l e d g e o f t h e T r u s t e e , i t h a s n o t b e e n s e r v e d
w i t h a n y a c t i o n ; s u i t , p r o c e e d i n g , i n q u i r y o r i n v e s t i g a t i o n , a t l a w o r i n e q u i t y , b e f o r e o r b y a n y
c o u r t , g o v e r n m e n t a l a g e n c y , p u b l i c b o a r d o r b o d y , n o r i s a n y s u c h a c t i o n o r o t h e r p r o c e e d i n g
t h r e a t e n e d a g a i n s t t h e T r u s t e e , a s s u c h b u t n o t i n i t s i n d i v i d u a l c a p a c i t y , a f f e c t i n g t h e e x i s t e n c e
o f t h e T r u s t e e , o r t h e t i t l e s o f i t s o f f i c e r s t o t h e i r r e s p e c t i v e o f f i c e s o r s e e k i n g t o p r o h i b i t , r e s t r a i n
o r e n j o i n t h e c o l l e c t i o n o f S a l e s T a x R e v e n u e s t o b e a p p l i e d t o p a y t h e p r i n c i p a l , p r e m i u m , i f
a n y , a n d i n t e r e s t o n t h e B o n d s , o r t h e p l e d g e t h e r e o f , o r i n a n y w a y c o n t e s t i n g o r a f f e c t i n g t h e
v a l i d i t y o r e n f o r c e a b i l i t y o f t h e I n d e n t u r e , o r c o n t e s t i n g t h e p o w e r s o f t h e T r u s t e e o r i t s a u t h o r i t y
t o e n t e r i n t o , a d o p t o r p e r f o r m i t s o b l i g a t i o n s u n d e r a n y o f t h e f o r e g o i n g , w h e r e i n a n u n f a v o r a b l e
d e c i s i o n , r u l i n g o r f i n d i n g w o u l d m a t e r i a l l y a d v e r s e l y a f f e c t t h e v a l i d i t y o r e n f o r c e a b i l i t y o f t h e
T r u s t e e D o c u m e n t s ; a n d
t h e I n d e n t u r e .
( E ) t h e T r u s t e e w i l l a p p l y t h e p r o c e e d s f r o m t h e B o n d s a s p r o v i d e d i n
( v i i i ) a n o p i n i o n o f c o u n s e l t o t h e T r u s t e e , a d d r e s s e d t o t h e U n d e r w r i t e r s , i n
f o r m a n d s u b s t a n c e s a t i s f a c t o r y t o t h e R e p r e s e n t a t i v e , t o t h e e f f e c t t h a t t h e T r u s t e e i s a n a t i o n a l
b a n k i n g a s s o c i a t i o n w i t h d u e p o w e r a n d a u t h o r i t y t o e x e c u t e t h e I n d e n t u r e , a n d t h a t t h e
I n d e n t u r e i s i n e f f e c t a n d i s v a l i d a n d b i n d i n g u p o n t h e T r u s t e e ;
( i x ) a c o p y o f t h e O f f i c i a l S t a t e m e n t , e x e c u t e d o n b e h a l f o f t h e C o m m i s s i o n b y
a p e r s o n d u l y a u t h o r i z e d t o s i g n o n b e h a l f o f t h e C o m m i s s i o n ;
( x ) a c e r t i f i e d c o p y o f t h e g e n e r a l r e s o l u t i o n o r r e s o l u t i o n s o f t h e T r u s t e e
a u t h o r i z i n g t h e e x e c u t i o n a n d d e l i v e r y o f t h e I n d e n t u r e a n d t h e B o n d s ;
( x i ) c e r t i f i e d c o p i e s o f t h e r e s o l u t i o n o r r e s o l u t i o n s o f t h e C o m m i s s i o n
a u t h o r i z i n g t h e e x e c u t i o n a n d d e l i v e r y o f t h e C o m m i s s i o n ' s D o c u m e n t s ;
( x i i ) a c o p y o f t h e P r e l i m i n a r y B l u e S k y M e m o r a n d u m w i t h r e s p e c t t o t h e
B o n d s , p r e p a r e d b y U n d e r w r i t e r s ' C o u n s e l ;
5 6 3 5 0 . 3 0 3 3 0 8 3 A G M T
1 5 1
(xiii) 8038-G. Evidence that the federal tax information form 8038-G relating
to the Bonds has been prepared for filing;
(xiv) Tax Certificate. A tax certificate relating to the Bonds in form satisfactory
to Bond Counsel and the Underwriters;
(xv) CDIAC Statements. A copy of the Notices of Sale required to be
delivered to the California Debt Investment and Advisory Commission pursuant to Sections
8855(g) and 53583 of the California Government Code;
(xvi) Ratings. Evidence that any ratings on the Bonds described in the Official
Statement are in full force and effect as of the date of the Closing;
(xvii) A Certificate, dated the Closing Date, signed by an authorized
representative of Fieldman Rolapp & Associates, Financial Advisor to the Commission, to the
effect that no information came to such representative's attention which gives such
representative reason to believe that the statements and information in the Official Statement
under the caption "PLAN OF REFUNDING" contains any untrue statement of a material fact or
omits to state a material fact necessary in order to make the statements made therein, in light of
the circumstances under which they were made, not misleading;
(xviii) A certified copy of the proceedings relating to authorization and approval
of the Sales Tax, including: (i) a certified copy of the Ordinance; and (ii) a certification from the
Registrar of Voters in the County of Riverside concerning results of the November 5, 2002
election;
(xix) A copy of the executed Agreement for State Administration of
Transactions and Use Tax, between the Commission and the California State Board of
Equalization, including all amendments thereto;
(xx) A copy of the Blanket Letter of Representation to DTC relating to the
Bonds signed by DTC and the Commission;
(xxi) On or prior to the Closing Date, the 2009 Liquidity Facility shall have
been delivered to the Trustee;
(xxii) A certificate or certificates, dated the Closing Date, in form and substance
acceptable to the Underwriters and the Commission, of an authorized officer or officers of the
2009 Liquidity Provider, to the effect that the information in the Official Statement under the
caption "THE LIQUIDITY PROVIDER" is true and correct in all material respects as of its date;
(xxiii) An opinion or opinions of counsel to the 2009 Liquidity Provider, dated
the Closing Date, addressed to the Underwriters and the Commission, in form and substance
acceptable to the Underwriters and the Commission, and satisfactory to Bond Counsel,
(i) relating to the authority of the 2009 Liquidity Provider to issue the 2009 Liquidity Facility,
(ii) to the effect that the 2009 Liquidity Facility has been executed and issued and is valid and
binding on the 2009 Liquidity Provider enforceable in accordance with its terms, and (iii)
12
56350.3 033083 AGMT
•
s
•
152
"
c o n f i r m i n g t h e a c c u r a c y o f t h e d i s c l o s u r e c o n t a i n e d u n d e r t h e c a p t i o n " L I Q U I D I T Y F A C I L I T Y "
i n t h e O f f i c i a l S t a t e m e n t ;
( x x i v ) A v e r i f i c a t i o n r e p o r t b y
f
( x x v ) A d e f e a s a n c e o p i n i o n f r o m B o n d C o u n s e l , d a t e d t h e C l o s i n g D a t e a n d
a d d r e s s e d t o t h e T r u s t e e , t h e 2 0 0 9 . L i q u i d i t y P r o v i d e r a n d t h e U n d e r w r i t e r s t o t h e e f f e c t t h a t t h e
o b l i g a t i o n s o f t h e C o m m i s s i o n w i t h r e s p e c t t o t h e 2 0 0 8 B o n d s h a v e c e a s e d , t e r m i n a t e d , b e c o m e
v o i d a n d b e c o m p l e t e l y d i s c h a r g e d a n d s a t i s f i e d e x c e p t a s e x p r e s s l y s e t f o r t h i n t h e I n d e n t u r e ;
( x x v i ) A n e x e c u t e d c o p y o f t h e C o n t i n u i n g D i s c l o s u r e A g r e e m e n t ; a n d
( x x v i i ) S u c h a d d i t i o n a l c e r t i f i c a t e s , l e g a l o p i n i o n s o f B o n d C o u n s e l , D i s c l o s u r e
C o u n s e l o r o t h e r c o u n s e l a n d s u c h o t h e r i n s t r u m e n t s o r d o c u m e n t s a s U n d e r w r i t e r s ' C o u n s e l ,
D i s c l o s u r e C o u n s e l o r B o n d C o u n s e l r e a s o n a b l y r e q u e s t t o e v i d e n c e t h e t r u t h a n d a c c u r a c y a s o f
t h e d a t e h e r e o f a n d a s o f t h e C l o s i n g D a t e o f i n f o r m a t i o n c o n t a i n e d i n t h e O f f i c i a l S t a t e m e n t a n d
t h e r e p r e s e n t a t i o n s a n d w a r r a n t i e s c o n t a i n e d h e r e i n a n d i n t h e O f f i c i a l S t a t e m e n t a n d t h e d u e
s a t i s f a c t i o n a s o r p r i o r t o t h e C l o s i n g D a t e o f a l l c o n d i t i o n s t h e n t o b e s a t i s f i e d i n c o n n e c t i o n
w i t h t h e t r a n s a c t i o n c o n t e m p l a t e d h e r e b y .
6 . T o t h e e x t e n t p e r m i t t e d b y l a w , t h e C o m m i s s i o n a g r e e s t o i n d e m n i f y a n d h o l d
h a r m l e s s t h e U n d e r w r i t e r s a n d e a c h p e r s o n , i f a n y , w h o c o n t r o l s ( w i t h i n t h e m e a n i n g o f
S e c t i o n 1 5 o f t h e S e c u r i t i e s A c t o f 1 9 3 3 , a s a m e n d e d , o r o f S e c t i o n 2 0 o f t h e S e c u r i t i e s
E x c h a n g e A c t o f 1 9 3 4 , a s a m e n d e d ) t h e U n d e r w r i t e r s a n d t h e o f f i c e r s , a g e n t s a n d e m p l o y e e s o f
t h e U n d e r w r i t e r s ( e a c h s u c h p e r s o n , a n " I n d e m n i f i e d P a r t y " ) a g a i n s t a n y a n d a l l l o s s e s , c l a i m s ,
d a m a g e s , l i a b i l i t i e s a n d e x p e n s e s a r i s i n g o u t o f a n y u n t r u e s t a t e m e n t o f a m a t e r i a l f a c t c o n t a i n e d
i n t h e O f f i c i a l S t a t e m e n t e x c e p t f o r t h o s e p o r t i o n s u n d e r t h e c a p t i o n s " T H E L I Q U I D I T Y
F A C I L I T Y , " " T H E L I Q U I D I T Y P R O V I D E R , " " R E M A R K E T I N G A G E N T S , "
" U N D E R W R I T I N G " a n d A P P E N D I X D " B O O K - E N T R Y S Y S T E M , " ( t h e " E x c l u d e d
I n f o r m a t i o n " ) o r t h e o m i s s i o n ( o t h e r t h a n o m i s s i o n s i n t h e E x c l u d e d I n f o r m a t i o n ) t o s t a t e i n t h e
O f f i c i a l S t a t e m e n t a m a t e r i a l f a c t n e c e s s a r y t o m a k e t h e s t a t e m e n t s t h e r e i n r e l a t i n g t o t h e
C o m m i s s i o n i n l i g h t o f t h e c i r c u m s t a n c e s u n d e r w h i c h t h e y w e r e m a d e n o t m i s l e a d i n g .
T h e C o m m i s s i o n s h a l l n o t b e l i a b l e f o r a n y s e t t l e m e n t o f a n y s u c h a c t i o n e f f e c t e d w i t h o u t
i t s c o n s e n t b y a n y I n d e m n i f i e d P a r t y , w h i c h c o n s e n t s h a l l n o t b e u n r e a s o n a b l y w i t h h e l d , b u t i f
s e t t l e d w i t h t h e c o n s e n t o f t h e C o m m i s s i o n o r i f t h e r e b e a f i n a l j u d g m e n t f o r t h e p l a i n t i f f i n a n y
s u c h a c t i o n a g a i n s t t h e C o m m i s s i o n o r a n y I n d e m n i f i e d P a r t y , t h e C o m m i s s i o n a g r e e s t o
i n d e m n i f y a n d h o l d h a r m l e s s s u c h I n d e m n i f i e d P a r t y t o t h e e x t e n t p r o v i d e d h e r e i n .
I n c a s e a n y c l a i m s h a l l b e m a d e o r a c t i o n b r o u g h t a g a i n s t a n I n d e m n i f i e d P a r t y f o r w h i c h
i n d e m n i t y m a y b e s o u g h t a g a i n s t t h e C o m m i s s i o n , a s p r o v i d e d a b o v e , t h e U n d e r w r i t e r s s h a l l
p r o m p t l y n o t i f y t h e C o m m i s s i o n i n w r i t i n g s e t t i n g f o r t h t h e p a r t i c u l a r s o f s u c h c l a i m o r a c t i o n
a n d t h e C o m m i s s i o n s h a l l a s s u m e t h e d e f e n s e t h e r e o f , i n c l u d i n g a t i t s o p t i o n t h e r e t a i n i n g o f
c o u n s e l a c c e p t a b l e t o t h e U n d e r w r i t e r s a n d i n c l u d i n g t h e p a y m e n t o f a l l e x p e n s e s . T h e
I n d e m n i f i e d P a r t y s h a l l n o t h a v e t h e r i g h t t o r e t a i n s e p a r a t e c o u n s e l u n l e s s ( i ) t h e C o m m i s s i o n
s h a l l h a v e s p e c i f i c a l l y a u t h o r i z e d t h e r e t a i n i n g o f s u c h c o u n s e l o r ( i i ) t h e p a r t i e s t o s u c h s u i t
i n c l u d e t h e I n d e m n i f i e d P a r t y a n d o n e o r m o r e l e g a l d e f e n s e s m a y b e a v a i l a b l e t o i t w h i c h m a y
1 3
5 6 3 5 0 . 3 0 3 3 0 8 3 A G M T
1 5 3
not be available to the Commission, in which case the Commission shall not be entitled to
assume the defense of the suit but the Underwriters shall bear the fees and expenses of such
counsel.
Each Underwriter agrees, severally and not jointly, to indemnify and hold harmless the
Commission, its employees and its officers, but only with reference to liability in connection
with false statements and information in the Official Statement furnished to the Commission in
writing by such Underwriter for inclusion in the Official Statement.
7. The Underwriters shall have the right to cancel their obligation hereunder to
purchase the Bonds (and such cancellation shall not constitute a default hereunder by the
Underwriters) by the Representative notifying you in writing or by telegram of its election so to
do between the date hereof and the Closing, if at any time hereafter and prior to the Closing:
(i) any event occurring, or information becoming known that, in the
reasonable judgment of the Representative, makes untrue in any material respect any statement
or information contained in the Official Statement or results in an omission of a material fact
required to be stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; or
(ii) an amendment to the Constitution of the United States of America or by
any legislation in or by the Congress of the United States of America or by the State of
California, or the amendment of legislation pending as of the date of this Purchase Agreement in
the Congress of the United States of America, or the recommendation to Congress or
endorsement for passage (by press release, other form of notice or otherwise) of legislation by
the President of the United States of America, the Treasury Department of the United States of
America, the Internal Revenue Service or the Chairman or ranking minority member of the
Committee on Finance of the United States Senate or the Committee on Ways and Means of the
United States House of Representatives, or the proposal for consideration of legislation by either
such Committee or by any member thereof, or the presentment of legislation for consideration as
an option by either such Committee, or by the staff of the Joint Committee on Taxation of the
Congress of the United States of America, or the favorable reporting for passage of legislation to
either House of the Congress of the United States of America by a Committee of such House to
which such legislation has been referred for consideration, or any decision of any federal or State
of California court or any ruling or regulation (final, temporary or proposed) or official statement
on behalf of the United States Treasury Department, the Internal Revenue Service or other
federal or State of California authority materially adversely affecting, in the reasonable judgment
of the Representative, the federal or State of California tax status of the Commission, or the
status of the interest on bonds or notes or obligations of the general character of the Bonds; or
(iii) any legislation, ordinance, rule or regulation shall be introduced in, or be
enacted by any governmental body, department or agency of the State of California, or a decision
by any court of competent jurisdiction within the State of California or any court of the United
States of America shall be rendered which, in the reasonable opinion of the Representative,
materially adversely affects the market price or marketability of the Bonds; or
14
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"
"
( i v ) l e g i s l a t i o n s h a l l b e e n a c t e d b y t h e C o n g r e s s o f t h e U n i t e d S t a t e s o f
A m e r i c a , o r a d e c i s i o n b y a c o u r t o f t h e U n i t e d S t a t e s o f A m e r i c a s h a l l b e r e n d e r e d , o r a s t o p
o r d e r , r u l i n g , r e g u l a t i o n o r o f f i c i a l s t a t e m e n t b y , o r o n b e h a l f o f , t h e S e c u r i t i e s a n d E x c h a n g e
C o m m i s s i o n o r a n y o t h e r g o v e r n m e n t a l a g e n c y h a v i n g j u r i s d i c t i o n o f t h e s u b j e c t m a t t e r s h a l l b e
i s s u e d o r m a d e t o t h e e f f e c t t h a t t h e e x e c u t i o n , d e l i v e r y , o f f e r i n g o r s a l e o f o b l i g a t i o n s o f t h e
g e n e r a l c h a r a c t e r o f t h e B o n d s , o r t h e e x e c u t i o n , d e l i v e r y , o f f e r i n g o r s a l e o f t h e B o n d s ,
i n c l u d i n g a l l u n d e r l y i n g o b l i g a t i o n s , a s c o n t e m p l a t e d h e r e b y o r b y t h e O f f i c i a l S t a t e m e n t , i s i n
v i o l a t i o n o r w o u l d b e i n v i o l a t i o n o f , o r t h a t o b l i g a t i o n s o f t h e g e n e r a l c h a r a c t e r o f t h e B o n d s , o r
t h e B o n d s , a r e n o t e x e m p t f r o m r e g i s t r a t i o n u n d e r , a n y p r o v i s i o n o f t h e f e d e r a l s e c u r i t i e s l a w s ,
i n c l u d i n g t h e S e c u r i t i e s A c t o f 1 9 3 3 , a s a m e n d e d a n d a s t h e n i n e f f e c t , o r t h a t t h e I n d e n t u r e
n e e d s t o b e q u a l i f i e d u n d e r t h e T r u s t I n d e n t u r e A c t o f 1 9 3 9 , a s a m e n d e d a n d a s t h e n i n e f f e c t ; o r
( v ) t h e i m p o s i t i o n b y t h e N e w Y o r k S t o c k E x c h a n g e o r o t h e r n a t i o n a l
s e c u r i t i e s e x c h a n g e o r a n y g o v e r n m e n t a l a u t h o r i t y o r a n y m a t e r i a l r e s t r i c t i o n s n o t n o w i n f o r c e
w i t h r e s p e c t t o t h e B o n d s o r o b l i g a t i o n s o f t h e g e n e r a l c h a r a c t e r o f t h e B o n d s o r s e c u r i t i e s
g e n e r a l l y o r t h e m a t e r i a l i n c r e a s e o f a n y s u c h r e s t r i c t i o n s n o w i n f o r c e , i n c l u d i n g t h o s e r e l a t i n g
t o t h e e x t e n s i o n o f c r e d i t b y o r t h e c h a r g e t o t h e n e t c a p i t a l r e q u i r e m e n t s o f , t h e U n d e r w r i t e r s ,
w h i c h , i n t h e r e a s o n a b l e o p i n i o n o f t h e R e p r e s e n t a t i v e , m a t e r i a l l y a d v e r s e l y a f f e c t s t h e m a r k e t
p r i c e o r m a r k e t a b i l i t y o f t h e B o n d s ; o r
( v i ) t h e d e c l a r a t i o n o f a g e n e r a l b a n k i n g m o r a t o r i u m b y f e d e r a l , N e w Y o r k o r
, C a l i f o r n i a a u t h o r i t i e s o r a m a j o r f i n a n c i a l c r i s i s o r a m a t e r i a l d i s r u p t i o n i n c o m m e r c i a l b a n k i n g
o r s e c u r i t i e s s e t t l e m e n t o r c l e a r a n c e s s e r v i c e s s h a l l h a v e o c c u r r e d , o r t h e g e n e r a l s u s p e n s i o n o f
t r a d i n g o r m i n i m u m o r m a x i m u m p r i c e s f o r t r a d i n g s h a l l h a v e b e e n f i x e d a n d b e i n f o r c e o r
m a x i m u m r a n g e s o r p r i c e s f o r s e c u r i t i e s s h a l l h a v e b e e n r e q u i r e d a n d b e i n f o r c e o n t h e N e w
Y o r k S t o c k E x c h a n g e o n a n y n a t i o n a l s e c u r i t i e s e x c h a n g e b y a d e t e r m i n a t i o n b y t h a t e x c h a n g e
o r b y o r d e r o f t h e S e c u r i t i e s a n d E x c h a n g e C o m m i s s i o n o r a n y o t h e r g o v e r n m e n t a l a g e n c y
h a v i n g j u r i s d i c t i o n , w h i c h , i n t h e r e a s o n a b l e o p i n i o n o f t h e R e p r e s e n t a t i v e , m a t e r i a l l y a d v e r s e l y
a f f e c t s t h e m a r k e t p r i c e o r m a r k e t a b i l i t y o f t h e B o n d s ; o r
( v i i ) a n y n e w o u t b r e a k o r e s c a l a t i o n o f h o s t i l i t i e s , d e c l a r a t i o n b y t h e U n i t e d
S t a t e s o f A m e r i c a o f a n a t i o n a l e m e r g e n c y o r w a r o r o t h e r c a l a m i t y o r c r i s i s a f f e c t i n g t h e
f i n a n c i a l m a r k e t s w h i c h , i n t h e r e a s o n a b l e o p i n i o n o f t h e R e p r e s e n t a t i v e , m a t e r i a l l y a d v e r s e l y
a f f e c t s t h e m a r k e t p r i c e o r m a r k e t a b i l i t y o f t h e B o n d s ; o r
( v i i i ) a n y r a t i n g o f s e c u r i t i e s o f t h e C o m m i s s i o n p a y a b l e f r o m o r s e c u r e d b y
R e v e n u e s r e f l e c t i n g t h e c r e d i t w o r t h i n e s s o f t h e C o m m i s s i o n , o r a n y r a t i n g r e l a t i n g t o t h e 2 0 0 9
L i q u i d i t y P r o v i d e r , s h a l l h a v e b e e n w i t h d r a w n o r r e d u c e d , p l a c e d o n c r e d i t w a t c h , a s s i g n e d a
n e g a t i v e o u t l o o k o r a n n o u n c e d t o b e u n d e r r e v i e w b y a r a t i n g a g e n c y , w h i c h , i n t h e
R e p r e s e n t a t i v e ' s r e a s o n a b l e o p i n i o n , m a t e r i a l l y a d v e r s e l y a f f e c t s t h e m a r k e t p r i c e o r
m a r k e t a b i l i t y o f t h e B o n d s ; o r
( i x ) t h e c o m m e n c e m e n t o f a n y a c t i o n , s u i t o r p r o c e e d i n g d e s c r i b e d i n
S e c t i o n 4 ( h ) h e r e o f w h i c h , i n t h e r e a s o n a b l e j u d g m e n t o f t h e R e p r e s e n t a t i v e , m a t e r i a l l y
a d v e r s e l y a f f e c t s t h e m a r k e t p r i c e o f t h e B o n d s ; o r
1 5
5 6 3 5 0 . 3 0 3 3 0 8 3 A G M T
1 5 5
(x) there shall be in force a general suspension of trading on the New York
Stock Exchange; or
(xi) a material adverse change has occurred or becomes known in the
operations or finances of the Commission.
8. The Underwriters shall be under no obligation to pay and the Commission shall
pay or cause to be paid from the proceeds of the Bonds or other funds available to it the expenses
incident to the performance of the obligations of the Commission hereunder, including but not
limited to (a) the cost of printing or engraving, and mailing or delivering the definitive Bonds
and the Official Statement in reasonable quantities and all other documents or the cost of
recording and filing such documents (other than as set forth in the next succeeding paragraph)
prepared in connection with the transactions contemplated hereby; (b) the fees and disbursements
of the Trustee, in connection with the execution, sale and delivery of the Bonds; (c) the fees and
disbursements of the Bond Counsel, Disclosure Counsel, General Counsel, and any other experts
or consultants retained by the Commission in connection with the transactions contemplated
hereby; (d) the costs related to obtaining ratings on the Bonds.
The Underwriters shall pay (a) California Debt and Investment Advisory Commission
fees; (b) the cost of preparation and printing of any Blue Sky Memorandum to be used by them;
(c) all advertising expenses in connection with the public offering of the Bonds; (d) the fees and
expenses of Underwriters' Counsel; and (e) CUSIP number costs. Any meals or traveling
expenses of the Issuer paid by the Underwriters were included as reimbursement of expenses as
part of the Underwriters' discount.
9. No covenant or agreement contained in this Purchase Agreement shall be deemed
to be a covenant or agreement of any member, officer, agent or employee of the Commission nor
shall such persons be liable personally under this Purchase Agreement or be subject to any
personal liability or accountability solely by reason of the execution of this Purchase Agreement
or solely by reason of the breach or attempted alleged breach hereof by the Commission.
10. Any notice to be given to the Commission under this Purchase Agreement may be
given by delivering the same to the office thereof c/o Riverside County Transportation
Commission, P.O. Box 12008, Riverside, California 92502, and any such notice to be given to
the Representative or the Underwriters may be given by delivering the same to Barclays Capital
Inc., 555 California Street, 30th Floor, San Francisco, California 94104.
11. The Commission hereby authorizes the Official Statement and the information
therein contained to be used by the Underwriters in connection with the public sale of the Bonds.
12. This Purchase Agreement shall be governed by, and construed in accordance
with, the laws of the State of California.
13. The representations and warranties of the Commission set forth in or made
pursuant to this Purchase Agreement shall not be deemed to have been discharged, satisfied or
otherwise rendered void by reason of the Closing or termination of this Purchase Agreement and
regardless of any investigations or statements as to the results thereof made by or on behalf of
the Underwriters and regardless of delivery of and payment for the Bonds.
16
56350.3 033083 AGMT
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"
1 4 . T h i s P u r c h a s e A g r e e m e n t , w h e n a c c e p t e d b y t h e C o m m i s s i o n , s h a l l c o n s t i t u t e t h e
e n t i r e a g r e e m e n t b e t w e e n t h e C o m m i s s i o n a n d t h e U n d e r w r i t e r s a n d i s m a d e s o l e l y f o r t h e
b e n e f i t o f t h e C o m m i s s i o n a n d t h e U n d e r w r i t e r s ( i n c l u d i n g t h e s u c c e s s o r s o f t h e U n d e r w r i t e r s ) .
N o o t h e r p e r s o n s h a l l a c q u i r e o r h a v e a n y r i g h t h e r e u n d e r b y v i r t u e h e r e o f , e x c e p t a s p r o v i d e d
h e r e i n .
1 5 . T h i s P u r c h a s e A g r e e m e n t i s m a d e s o l e l y f o r t h e b e n e f i t o f t h e C o m m i s s i o n a n d
t h e U n d e r w r i t e r s ( i n c l u d i n g t h e s u c c e s s o r s t h e r e o f ) , a n d n o o t h e r p e r s o n , p a r t n e r s h i p o r
a s s o c i a t i o n s h a l l a c q u i r e o r h a v e a n y r i g h t h e r e u n d e r o r b y v i r t u e h e r e o f . A l l r e p r e s e n t a t i o n s a n d
a g r e e m e n t s b y t h e C o m m i s s i o n i n t h i s P u r c h a s e A g r e e m e n t s h a l l r e m a i n o p e r a t i v e a n d i n f u l l
f o r c e a n d e f f e c t e x c e p t a s o t h e r w i s e p r o v i d e d h e r e i n , r e g a r d l e s s o f a n y i n v e s t i g a t i o n s m a d e b y o r
o n b e h a l f o f t h e U n d e r w r i t e r s a n d s h a l l s u r v i v e t h e i s s u a n c e o f a n d p a y m e n t o f t h e B o n d s .
1 6 . T h i s P u r c h a s e A g r e e m e n t m a y b e e x e c u t e d s i m u l t a n e o u s l y i n s e v e r a l c o u n t e r p a r t s
e a c h o f w h i c h s h a l l b e a n o r i g i n a l a n d a l l o f w h i c h s h a l l c o n s t i t u t e b u t o n e a n d t h e s a m e
i n s t r u m e n t .
1 7 . T h e R e p r e s e n t a t i v e , i n i t s s o l e d i s c r e t i o n , m a y w a i v e a n y c o n d i t i o n o r
r e q u i r e m e n t i m p o s e d u p o n t h e C o m m i s s i o n a s s e t f o r t h i n t h i s P u r c h a s e A g r e e m e n t .
1 8 . T h i s P u r c h a s e A g r e e m e n t s h a l l b e c o m e e f f e c t i v e u p o n t h e e x e c u t i o n o f t h e
a c c e p t a n c e h e r e b y b y t h e C o m m i s s i o n , a n d s h a l l b e v a l i d a n d b i n d i n g a n d e n f o r c e a b l e a s o f t h e
t i m e o f s u c h a c c e p t a n c e .
1 9 . T h e r i g h t s a n d o b l i g a t i o n s c r e a t e d b y t h i s P u r c h a s e A g r e e m e n t s h a l l n o t b e
s u b j e c t t o a s s i g n m e n t b y t h e U n d e r w r i t e r s o r t h e C o m m i s s i o n w i t h o u t t h e p r i o r w r i t t e n c o n s e n t
o f t h e o t h e r p a r t i e s h e r e t o .
2 0 . I n c a s e a n y o n e o r m o r e o f t h e p r o v i s i o n s , c o n t a i n e d h e r e i n s h a l l f o r a n y r e a s o n t o
b e h e l d i n v a l i d , i l l e g a l o r u n e n f o r c e a b l e i n a n y r e s p e c t , s u c h i n v a l i d i t y , i l l e g a l i t y o r
u n e n f o r c e a b i l i t y s h a l l n o t e f f e c t a n y o t h e r p r o v i s i o n s h e r e o f .
2 1 . T h e v a l i d i t y , i n t e r p r e t a t i o n , a n d p e r f o r m a n c e o f t h i s P u r c h a s e A g r e e m e n t s h a l l b e
g o v e r n e d b y t h e l a w s o f t h e S t a t e o f C a l i f o r n i a .
B A R C L A Y S C A P I T A L I N C . , o n b e h a l f o f i t s e l f
a n d a s R e p r e s e n t a t i v e o f t h e U n d e r w r i t e r s
B y :
T h e f o r e g o i n g i s h e r e b y a g r e e d t o a n d
a c c e p t e d a s o f t h e d a t e f i r s t a b o v e w r i t t e n :
R I V E R S I D E C O U N T Y T R A N S P O R T A T I O N C O M M I S S I O N
B y :
1 7
1 5 7
5 6 3 5 0 . 3 0 3 3 0 8 3 A G M T
ATTACHMENT 5
Hawkins Delafield & Wood LLP
Draft of 8-5-09
REMARKETING AGREEMENT
Between
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
and
[NAME OF REMARKETING AGENT]
Remarketing Agent
Dated as of October 1, 2009
Relating to
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
SALES TAX REVENUE BONDS
(LIMITED TAX BONDS)
2009 SERIES
56357.5 033083 AGMT
158
"
"
"
T h i s R E M A R K E T I N G A G R E E M E N T , d a t e d a s o f O c t o b e r 1 , 2 0 0 9 ( t h e " A g r e e m e n t " ) ,
b e t w e e n R I V E R S I D E C O U N T Y T R A N S P O R T A T I O N C O M M I S S I O N ( t h e " C o m m i s s i o n " )
a n d [ N A M E O F R E M A R K E T I N G A G E N T ] ( t h e " R e m a r k e t i n g A g e n t " ) .
W I T N E S S E T H :
W H E R E A S , t h e C o m m i s s i o n h a s i s s u e d i t s $ i n a g g r e g a t e p r i n c i p a l a m o u n t o f
S a l e s T a x R e v e n u e B o n d s ( L i m i t e d T a x B o n d s ) 2 0 0 9 S e r i e s ( t h e " B o n d s " ) p u r s u a n t t o a n
I n d e n t u r e , d a t e d a s o f J u n e 1 , 2 0 0 8 , b e t w e e n t h e C o m m i s s i o n a n d U . S . B a n k N a t i o n a l
A s s o c i a t i o n , a s t r u s t e e ( t h e " T r u s t e e " ) , a s s u p p l e m e n t e d , i n c l u d i n g b y a S e c o n d S u p p l e m e n t a l
I n d e n t u r e , d a t e d a s o f O c t o b e r 1 , 2 0 0 9 , b e t w e e n t h e C o m m i s s i o n a n d t h e T r u s t e e ( a s
s u p p l e m e n t e d , t h e " I n d e n t u r e " ) ; a n d
W H E R E A S , t h e p a r t y i d e n t i f i e d i n S e c t i o n 1 4 h e r e o f ( t h e " 2 0 0 9 L i q u i d i t y P r o v i d e r " ) h a s
d e l i v e r e d a S t a n d b y B o n d P u r c h a s e A g r e e m e n t , d a t e d a s o f O c t o b e r 1 , 2 0 0 9 ( t h e " 2 0 0 9 L i q u i d i t y
F a c i l i t y " ) w i t h r e s p e c t t o t h e B o n d s t o t h e T r u s t e e i n a c c o r d a n c e w i t h t h e t e r m s o f t h e I n d e n t u r e
a n d t h e 2 0 0 9 L i q u i d i t y F a c i l i t y ; a n d
W H E R E A S , t h e I n d e n t u r e p r o v i d e s f o r o p t i o n a l a n d m a n d a t o r y t e n d e r s f o r p u r c h a s e o f
t h e B o n d s b y t h e r e g i s t e r e d o w n e r s ( t h e " O w n e r s " ) o f t h e B o n d s , a l l i n a c c o r d a n c e w i t h t h e
t e r m s o f t h e I n d e n t u r e ; a n d
W H E R E A S , t h e I n d e n t u r e p r o v i d e s f o r t h e a p p o i n t m e n t o f a r e m a r k e t i n g a g e n t t o
p e r f o r m c e r t a i n d u t i e s , i n c l u d i n g t h e r e m a r k e t i n g o f a n y B o n d s t e n d e r e d o r d e e m e d t e n d e r e d b y
t h e O w n e r s t h e r e o f f o r p u r c h a s e ; a n d
W H E R E A S , t h e R e m a r k e t i n g A g e n t h a s a g r e e d t o a c c e p t t h e d u t i e s a n d r e s p o n s i b i l i t i e s
o f t h e R e m a r k e t i n g A g e n t w i t h r e s p e c t t o t h e B o n d s u n d e r t h e I n d e n t u r e a n d t h i s A g r e e m e n t ;
N O W , T H E R E F O R E , f o r a n d i n c o n s i d e r a t i o n o f t h e m u t u a l c o v e n a n t s m a d e h e r e i n a n d
o t h e r v a l u a b l e c o n s i d e r a t i o n , t h e r e c e i p t a n d s u f f i c i e n c y o f w h i c h i s h e r e b y a c k n o w l e d g e d , t h e
p a r t i e s h e r e t o a g r e e a s f o l l o w s :
S e c t i o n 1 . D e f i n i t i o n s . U n l e s s o t h e r w i s e d e f i n e d h e r e i n , a l l c a p i t a l i z e d t e r m s s h a l l h a v e
t h e m e a n i n g s a s c r i b e d t o t h e m i n t h e I n d e n t u r e .
S e c t i o n 2 . A p p o i n t m e n t o f R e m a r k e t i n g A g e n t . S u b j e c t t o t h e t e r m s a n d c o n d i t i o n s
c o n t a i n e d h e r e i n , t h e C o m m i s s i o n h e r e b y a p p o i n t s [ N a m e o f R e m a r k e t i n g A g e n t ] a s e x c l u s i v e
R e m a r k e t i n g A g e n t f o r t h e B o n d s , a n d t h e R e m a r k e t i n g A g e n t h e r e b y a c c e p t s s u c h a p p o i n t m e n t .
S e c t i o n 3 . R e s p o n s i b i l i t i e s o f R e m a r k e t i n g A g e n t . ( a ) S u b j e c t t o t h e t e r m s a n d
c o n d i t i o n s s e t f o r t h i n t h i s A g r e e m e n t , t h e R e m a r k e t i n g A g e n t a g r e e s t o p e r f o r m t h e d u t i e s o f
R e m a r k e t i n g A g e n t s e t f o r t h i n t h e I n d e n t u r e a n d i n t h i s A g r e e m e n t . I t i s u n d e r s t o o d t h a t i n
u n d e r t a k i n g t o p e r f o r m s u c h d u t i e s , a n d i n t h e p e r f o r m a n c e t h e r e o f , i t i s t h e i n t e n t i o n o f t h e
p a r t i e s t h a t t h e R e m a r k e t i n g A g e n t w i l l a c t s o l e l y a s a n a g e n t a n d n o t a s a p r i n c i p a l , e x c e p t a s
e x p r e s s l y p r o v i d e d i n S e c t i o n 1 2 h e r e o f . T h e d u t i e s o f t h e R e m a r k e t i n g A g e n t s h a l l i n c l u d e t h e
f o l l o w i n g :
l
5 6 3 5 7 . 5 0 3 3 0 8 3 A G M T
1 5 9
(i) Determination of Interest Rates. The Remarketing Agent shall determine
the interest rates on the Bonds in the manner and at the times specified therefor in the
Indenture.
(ii) Remarketing of Tendered Bonds.
(A) The Remarketing Agent shall use its best efforts to remarket the
applicable Bonds tendered under the terms and conditions provided for in the
Indenture. [to be revised once Liquidity Provider is in place]
(B) Prior to any remarketing of Bonds in connection with a conversion
of the Bonds from one Interest Rate Determination Method to another, the
Commission and the Remarketing Agent shall enter into a mutually agreeable
contract for the purchase by the Remarketing Agent of such Bonds for reoffering
to the public or for a "best efforts" remarketing by the Remarketing Agent of such
Bonds (a "Remarketing Contract"). The Remarketing Contract shall contain
usual and customary terms and conditions, which shall be substantially similar to
the terms and conditions contained in the Bond Purchase Agreement, dated as of
October _, 2009, between the Commission and the Remarketing Agent (the
"Purchase Agreement") as modified to reflect the facts and circumstances then in
existence, and shall provide for a mutually agreeable fee to the Remarketing
Agent in connection with such remarketing.
(iii) Furnishing of Disclosure Material. The Commission shall timely furnish
to the Remarketing Agent at the Commission's expense the disclosure materials
contemplated by this Agreement, and the Remarketing Agent shall, in turn, furnish such
materials to potential purchasers of the Bonds.
(iv) Other Duties. The Remarketing Agent shall perform such other duties as
are specifically sdt forth in this Agreement and the Indenture for the Remarketing Agent.
(b) Notwithstanding anything to the contrary contained herein, the
Remarketing Agent:
(i) will suspend its remarketing efforts upon the receipt of notice of
the occurrence of an event of default under the Bonds, the Indenture, or the 2009
Liquidity Facility; and
(ii) may, in its sole discretion, suspend its remarketing efforts with
respect to the Bonds immediately upon the occurrence of any of the following events,
which suspension will continue so long as, in the Remarketing Agent's reasonable
judgment, such event continues to exist as to the Bonds:
(1) suspension or material limitation in trading in Bonds generally
on the New York Stock Exchange, or material disruptions in commercial
banking or securities settlement or clearance services;
2
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(2) a general moratorium on commercial banking activities in New
York is declared by either federal or New York State authorities;
(3) the engagement or escalation by the United States in hostilities
or the occurrence of a calamity or crisis if the effect of such event, in the
Remarketing Agent's judgment, makes it impractical or inadvisable to
proceed with the solicitation of offers to purchase the Bonds;
(4) legislation shall be introduced by committee, by amendment or
otherwise, in, or be enacted by, the House of Representatives or the Senate
of the Congress of the United States, or a decision by a court of the United
States shall be rendered, or a stop order, ruling, regulation or official
statement by, or on behalf of, the United States Securities and Exchange
Commission or other governmental agency having jurisdiction of the
subject matter shall be made or proposed, to the effect that the offering or
sale of obligations of the general character of the Bonds, as contemplated
hereby, is or would be in violation of any provision of the Securities Act of
1933, as amended (the "Securities Act") as then in effect, or the Securities
Exchange Act of 1934, as amended (the "Exchange Act") as then in effect,
or with the purpose or effect of otherwise prohibiting the offering or sale of
obligations of the general character of the Bonds, or the Bonds themselves,
as contemplated hereby;
(5) any event shall occur or information shall become known,
which, in the Remarketing Agent's reasonable opinion, makes untrue,
incorrect or misleading in any material respect any statement or information
contained in any disclosure documents provided to the Remarketing Agent
in connection with the performance of its duties hereunder, whether
provided pursuant to Section 5 hereof or otherwise, or causes such
documents to contain an untrue, incorrect or misleading statement of a
material fact or to omit to state a material fact required to be stated therein
or necessary to make the statements made therein, in light of the
circumstances under which they were made, not misleading;
(6) any governmental authority shall impose, as to the Bonds, or.
obligations of the general character of the Bonds, any material restrictions
not now in force, or increase materially those now in force;
(7) any of the representations and warranties of the Commission
made hereunder or in the Purchase Agreement shall not have been true and
correct on the date made;
(8) the Commission fails to observe any of the covenants or
agreements made herein;
(9) any of the rating agencies then rating the Bonds or the 2009
Liquidity Provider shall either (i) downgrade the ratings assigned to either
3
56357.5 033083 AGMT
161
the Bonds or the 2009 Liquidity Provider so that such Bonds are not
"Eligible Bonds" as defined under Rule 2a-7 of the Investment Company
Act of 1940, as amended or (ii) suspend or withdraw the then current
ratings assigned to either the Bonds or the 2009 Liquidity Provider; or
(10) an actual or imminent default or a moratorium in respect of
payment of any U.S. Treasury bills, bonds or notes the effect of which in
the Remarketing Agent's judgment makes it impractical to market the
Bonds or to enforce contracts for the sale of the Bonds.
Section 4. Resignation and Removal of Remarketing Agent. The Remarketing Agent
may at any time resign and be discharged of its duties and obligations hereunder upon providing
the Commission, the Trustee and the 2009 Liquidity Provider with fifteen (15) days' prior
written notice. The Remarketing Agent may be removed at any time, at the direction of the
Commission upon fifteen (15) days' prior written notice to the Remarketing Agent, the Trustee,
and the 2009 Liquidity Provider. Upon removal or resignation of the Remarketing Agent, the
Commission shall promptly cause the Trustee to give notice thereof by mail to all Owners and to
any rating agency which has assigned a rating to the Bonds.
Section 5. Furnishing of Disclosure Materials.
(a) The Commission agrees to furnish the Remarketing Agent with as many
copies as the Remarketing Agent may reasonably request of the Official Statement of the
Commission relating to the Bonds dated , 2009 (the "Official Statement"), and such
other information with respect to the Commission and the Bonds as the Remarketing Agent shall
reasonably request from time to time.
(b) The Commission agrees to cooperate with the Remarketing Agent in the
preparation from time -to -time of a new official statement, reoffering document or other
disclosure material for the Bonds in the event the Remarketing Agent determines that the
preparation and distribution of such official statement, reoffering document or other disclosure
material is necessary or desirable in connection with remarketing the Bonds and to furnish or to
cause to be furnished to the Remarketing Agent as many copies of such new official statement or
other reoffering materials as the Remarketing Agent shall request.
(c) If, at any time during the term of this Remarketing Agreement, any event
shall occur or facts become known to either party that might affect the correctness or
completeness of any statement of a material fact contained in the Official Statement, reoffering
document or other disclosure material, such party shall promptly notify the other in writing of the
circumstances and details of such event. The Commission agrees to promptly furnish to the
Remarketing Agent a copy of each filing or notice made to anyone (whether in connection with
the Bonds or not) pursuant to any undertaking or other agreement of the Commission made
under any provision of Rule 15c2-12 promulgated by the Securities and Exchange Commission.
(d) In connection with the remarketing of the Bonds as a result of, or in
anticipation of (i) the occurrence of the conversion of the Bonds to a different Interest Rate
Determination Method, (ii) the occurrence of a material adverse change in the financial condition
4
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"
"
"
o f t h e C o m m i s s i o n , i n c l u d i n g , b u t n o t l i m i t e d t o , a c h a n g e i n t h e l o n g - t e r m o r s h o r t - t e r m c r e d i t
r a t i n g s o f t h e C o m m i s s i o n , ( i i i ) t h e d e l i v e r y o f a n A l t e m a t e L i q u i d i t y F a c i l i t y , o r ( i v ) o n e o f t h e
e v e n t s m e n t i o n e d i n ( c ) a b o v e , t h e C o m m i s s i o n s h a l l p r e p a r e o r c a u s e t o b e p r e p a r e d a t i t s
e x p e n s e a n y d i s c l o s u r e d o c u m e n t s t h a t i n t h e r e a s o n a b l e o p i n i o n o f t h e R e m a r k e t i n g A g e n t o r
t h e C o m m i s s i o n a r e n e c e s s a r y o r d e s i r a b l e .
( e ) I n o r d e r t o c o m p l y w i t h t h e r e q u i r e m e n t s o f R u l e 1 5 c 2 - 1 2 a s p r o m u l g a t e d
b y t h e S e c u r i t i e s a n d E x c h a n g e C o m m i s s i o n ( a s a m e n d e d , " R u l e 1 5 c 2 - 1 2 " ) , i n t h e e v e n t t h e
R e m a r k e t i n g A g e n t i s a s k e d t o r e m a r k e t B o n d s i n o n e o r m o r e o f t h e f o l l o w i n g c i r c u m s t a n c e s :
[ t o b e m o d i f i e d p e n d i n g c h a n g e s t o R u l e 1 5 c 2 - 1 2 ]
( i ) w h e r e t h e B o n d s a r e t o b e c o n v e r t e d f r o m v a r i a b l e r a t e b o n d s t o t h e L o n g -
T e r m R a t e o r F i x e d R a t e ; o r
( i i ) w h e r e t h e a u t h o r i z e d d e n o m i n a t i o n o f t h e B o n d s w i l l b e r e d u c e d ( b e c a u s e o f
a c h a n g e i n I n t e r e s t R a t e D e t e r m i n a t i o n M e t h o d o r o t h e r w i s e ) f r o m $ 1 0 0 , 0 0 0 t o l e s s t h a n
$ 1 0 0 , 0 0 0 ; o r
( i i i ) w h e r e t h e B o n d s a r e o t h e r w i s e n o t e x e m p t f r o m t h e r e q u i r e m e n t s o f R u l e
1 5 c 2 - 1 2 ( a s t h e y a r e o n t h e d a t e h e r e o f b y v i r t u e o f b e i n g i n t h e W e e k l y R a t e P e r i o d a n d
i n m i n i m u m a u t h o r i z e d d e n o m i n a t i o n s o f $ 1 0 0 , 0 0 0 ) ; t h e n
( 1 ) t h e C o m m i s s i o n , a t t h e e x p e n s e o f t h e C o m m i s s i o n , s h a l l p r o v i d e t h e
R e m a r k e t i n g A g e n t , p r i o r t o t h e d a t e t h e R e m a r k e t i n g A g e n t i s t o b i d f o r , o f f e r o r
s e l l a n y B o n d s o r r e m a r k e t a n y B o n d s , a r e o f f e r i n g s t a t e m e n t t h e C o m m i s s i o n
d e e m s f i n a l a s o f i t s d a t e ( e x c l u s i v e o f p r i c i n g a n d o t h e r s a l e s i n f o r m a t i o n
p e r m i t t e d t o b e e x c l u d e d b y R u l e 1 5 c 2 - 1 2 ) ;
( 2 ) i f a p r e l i m i n a r y r e o f f e r i n g s t a t e m e n t o r o t h e r d i s c l o s u r e d o c u m e n t i s
p r e p a r e d , t h e C o m m i s s i o n , a t t h e e x p e n s e o f C o m m i s s i o n , s h a l l p r o v i d e t h e
R e m a r k e t i n g A g e n t w i t h s u c h n u m b e r o f c o p i e s t h e r e o f a s t h e R e m a r k e t i n g A g e n t
m a y n e e d t o s u p p l y a t l e a s t o n e c o p y t h e r e o f t o e a c h p o t e n t i a l c u s t o m e r w h o
r e q u e s t s i t ;
( 3 ) t h e C o m m i s s i o n , a t t h e e x p e n s e o f t h e C o m m i s s i o n , s h a l l p r o v i d e t h e
R e m a r k e t i n g A g e n t w i t h i n s e v e n ( 7 ) B u s i n e s s D a y s a f t e r t h e d a t e u p o n w h i c h t h e
i n t e r e s t r a t e o n t h e B o n d s i s d e t e r m i n e d o r b y t h e t i m e " m o n e y c o n f i r m a t i o n s " a r e
t o b e s e n t t o c u s t o m e r s , w h i c h e v e r i s e a r l i e r , w i t h a n u m b e r o f c o p i e s o f t h e f i n a l
r e o f f e r i n g s t a t e m e n t o r d i s c l o s u r e d o c u m e n t a d e q u a t e t o s u p p l y a t l e a s t o n e c o p y
o f s u c h f i n a l r e o f f e r i n g s t a t e m e n t o r d i s c l o s u r e d o c u m e n t t o a n y c u s t o m e r o r a n y
p o t e n t i a l c u s t o m e r f o r a p e r i o d c o m m e n c i n g o n t h e d a t e s u c h f i n a l r e o f f e r i n g
s t a t e m e n t o r d i s c l o s u r e d o c u m e n t i s a v a i l a b l e a n d e x t e n d i n g f o r a p e r i o d o f
t w e n t y - f i v e ( 2 5 ) d a y s a f t e r t h e e n d o f t h e i n i t i a l o f f e r i n g p e r i o d w i t h r e s p e c t t o t h e
B o n d s i n t h e L o n g - T e r m R a t e o r F i x e d R a t e o r w i t h t h e d e n o m i n a t i o n o f l e s s t h a n
$ 1 0 0 , 0 0 0 . D u r i n g s u c h p e r i o d , t h e C o m m i s s i o n a g r e e s t o u p d a t e t h e f i n a l
r e o f f e r i n g s t a t e m e n t o r d i s c l o s u r e d o c u m e n t i n t h e s a m e w a y a s p r o v i d e d i n
p a r a g r a p h 3 ( b ) a b o v e . T h e C o m m i s s i o n h e r e b y a g r e e s t o c o o p e r a t e f u l l y w i t h t h e
5
5 6 3 5 7 . 5 0 3 3 0 8 3 A G M T
1 6 3
Remarketing Agent in the preparation of such disclosure documents. All costs
incurred in connection with the preparation of such disclosure documents and the
printing and shipping of such disclosure documents shall be home by the
Commission; and
(4) where then required by Rule 15c2-12, the Commission agrees to adopt
a continuing disclosure undertaking complying with paragraph (b)(5) of Rule
15c2-12 which will become effective prior to any such remarketing.
(f) Notwithstanding anything to the contrary contained herein, the
Commission may, to the extent permitted by law, include, through incorporation by reference in
any disclosure material furnished pursuant to this Section, such relevant reports, official
statements, continuing disclosure statements and other documents as are filed with the Securities
and Exchange Commission, any nationally recognized municipal securities information
repository recognized by said Commission, any state information depository or the Municipal
Securities Rulemaking Board.
Section 6. Reserved.
Section 7. Fees and Expenses. For the Remarketing Agent's services under this
Agreement and the Indenture, the Commission will pay the Remarketing Agent a fee of 0.10%
per annum of the weighted average of the principal amount of Bonds outstanding during each
three month period. The Commission will pay the fee quarterly in arrears commencing
December 1, 2009, and each March 1, June 1, September 1 and December 1 thereafter. When
Bonds are remarketed in connection with the conversion of the interest rate to a different Mode
or to a Term Rate or a Fixed Rate, the Commission and the Remarketing Agent will agree on a
fee specifically for such remarketing. If the Remarketing Agent is unable to remarket Bonds, no
fee will be owed or paid with respect to Bonds purchased by the 2009 Liquidity Provider
pursuant to the 2009 Liquidity Facility.
The Commission will reimburse the Remarketing Agent for all direct, out-of-pocket
expenses incurred by it as Remarketing Agent, including reasonable counsel fees and
disbursements.
Section 8. Representations, Warranties, Covenants and Agreements of the Remarketing
Agent. The Remarketing Agent, by its acceptance hereof, represents, warrants and covenants
and agrees with the Commission as follows:
(a) the Remarketing Agent is a member of the National Association of Bonds
Dealers, having a capitalization of at least $500,000, and otherwise meets the requirements for
the Remarketing Agent set forth in the Indenture;
(b) the Remarketing Agent has been duly incorporated, is validly existing and is in
good standing under the laws of the State of [Delaware], and is authorized by law to perform all
the duties and obligations imposed upon it as Remarketing Agent by this Agreement and the
Indenture; and
6
56357.5 033083 AGMT
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•
164
"
( c ) t h e R e m a r k e t i n g A g e n t h a s f u l l p o w e r a n d a u t h o r i t y t o t a k e a l l a c t i o n s r e q u i r e d o r
p e r m i t t e d t o b e t a k e n b y t h e R e m a r k e t i n g A g e n t b y o r u n d e r , a n d t o p e r f o r m a n d o b s e r v e t h e
c o v e n a n t s a n d a g r e e m e n t s o n i t s p a r t c o n t a i n e d i n , t h i s A g r e e m e n t a n d t h e I n d e n t u r e .
S e c t i o n 9 . R e p r e s e n t a t i o n s , W a r r a n t i e s , C o v e n a n t s a n d A g r e e m e n t s o f t h e C o m m i s s i o n .
T h e C o m m i s s i o n , b y i t s a c c e p t a n c e h e r e o f , r e p r e s e n t s , w a r r a n t s , c o v e n a n t s , a n d a g r e e s w i t h t h e
R e m a r k e t i n g A g e n t t h a t :
( a ) i t i s a c o u n t y t r a n s p o r t a t i o n c o m m i s s i o n o f t h e S t a t e o f C a l i f o r n i a ;
( b ) i t h a s f u l l p o w e r a n d a u t h o r i t y t o t a k e a l l a c t i o n s r e q u i r e d o r p e r m i t t e d t o b e t a k e n
b y t h e C o m m i s s i o n b y o r u n d e r , a n d t o p e r f o r m a n d o b s e r v e t h e c o v e n a n t s a n d a g r e e m e n t s o n i t s
p a r t c o n t a i n e d i n , t h i s A g r e e m e n t a n d a n y o t h e r i n s t r u m e n t o r a g r e e m e n t r e l a t i n g t h e r e t o t o
w h i c h t h e C o m m i s s i o n i s a p a r t y ;
( c ) i t h a s , o n o r b e f o r e t h e d a t e h e r e o f , d u l y t a k e n a l l a c t i o n n e c e s s a r y t o b e t a k e n b y
i t p r i o r t o s u c h d a t e t o a u t h o r i z e ( i ) t h e e x e c u t i o n , d e l i v e r y a n d p e r f o r m a n c e o f t h i s A g r e e m e n t ,
t h e I n d e n t u r e , t h e 2 0 0 9 L i q u i d i t y F a c i l i t y a n d a n y o t h e r i n s t r u m e n t o r a g r e e m e n t t o w h i c h t h e
C o m m i s s i o n i s a p a r t y a n d w h i c h h a s b e e n o r w i l l b e e x e c u t e d i n c o n n e c t i o n w i t h t h e
t r a n s a c t i o n s c o n t e m p l a t e d b y t h e f o r e g o i n g d o c u m e n t s ; a n d ( i i ) t h e c a r r y i n g o u t , g i v i n g e f f e c t t o ,
c o n s u m m a t i o n a n d p e r f o r m a n c e o f t h e t r a n s a c t i o n s a n d o b l i g a t i o n s c o n t e m p l a t e d b y t h e
f o r e g o i n g a g r e e m e n t s a n d b y t h e c u r r e n t d i s c l o s u r e m a t e r i a l r e l a t i n g t o t h e B o n d s ;
( d ) i t w i l l p r o v i d e T h e R e m a r k e t i n g A g e n t a t t h e a d d r e s s n o t e d i n S e c t i o n 1 4 h e r e o f ,
w i t h i n 2 1 0 d a y s o f t h e e n d o f e a c h f i s c a l y e a r , w i t h a c o p y o f i t s a n n u a l a u d i t e d f i n a n c i a l
s t a t e m e n t s f o r t h a t f i s c a l y e a r ; a n d
( e ) i t w i l l p r o m p t l y n o t i f y t h e R e m a r k e t i n g A g e n t b y E l e c t r o n i c M e a n s o f a n y
m a t e r i a l a d v e r s e c h a n g e s t h a t m a y a f f e c t t h e r e m a r k e t i n g o f t h e B o n d s o r a n y f a c t o r
c i r c u m s t a n c e w h i c h m a y c o n s t i t u t e , o r w i t h t h e p a s s a g e o f t i m e w i l l c o n s t i t u t e , a n e v e n t o f
d e f a u l t u n d e r t h e B o n d s , t h e I n d e n t u r e , o r t h e 2 0 0 9 L i q u i d i t y F a c i l i t y .
( f ) a l l d i s c l o s u r e m a t e r i a l , i n c l u d i n g , w i t h o u t l i m i t a t i o n , p r e l i m i n a r y a n d f i n a l o f f i c i a l
s t a t e m e n t s , r e o f f e r i n g d o c u m e n t s , a n d s u p p l e m e n t s , a m e n d m e n t s a n d u p d a t e s t o a n y t h e r e o f ,
f u r n i s h e d b y t h e C o m m i s s i o n a n d u s e d b y t h e R e m a r k e t i n g A g e n t ( i n c l u d i n g a m e n d m e n t s ,
s u p p l e m e n t s a n d r e p l a c e m e n t s t h e r e o f ) , s h a l l n o t c o n t a i n a n y u n t r u e , i n c o r r e c t o r m i s l e a d i n g
s t a t e m e n t o f a m a t e r i a l f a c t o r o m i t t o s t a t e a m a t e r i a l f a c t r e q u i r e d t o b e s t a t e d t h e r e i n o r
n e c e s s a r y t o m a k e t h e s t a t e m e n t s m a d e t h e r e i n , i n l i g h t o f t h e c i r c u m s t a n c e s u n d e r w h i c h t h e y
w e r e m a d e , n o t m i s l e a d i n g .
S e c t i o n 1 0 . T e r m o f A g r e e m e n t . T h i s A g r e e m e n t s h a l l b e c o m e e f f e c t i v e o n t h e d a t e
h e r e o f a n d s h a l l c o n t i n u e i n f u l l f o r c e a n d e f f e c t u n t i l t h e p a y m e n t i n f u l l o f t h e B o n d s o r t h e
e a r l i e r c o n v e r s i o n o f a l l B o n d s t o t h e L o n g - T e r m R a t e o r F i x e d R a t e , s u b j e c t t o t h e r i g h t o f
s u s p e n s i o n a n d t e r m i n a t i o n a s p r o v i d e d h e r e i n .
S e c t i o n 1 1 . G o v e r n i n g L a w . T h i s A g r e e m e n t s h a l l b e g o v e r n e d b y a n d c o n s t r u e d i n
a c c o r d a n c e w i t h t h e l a w s o f t h e S t a t e o f C a l i f o r n i a .
7
5 6 3 5 7 . 5 0 3 3 0 8 3 A G M T
1 6 5
Section 12. Dealing in Bonds by the Remarketing Agent; No Obligation to Purchase
Bonds. (a) The Remarketing Agent, in its individual capacity, may in good faith buy, sell, own,
hold and deal in any of the Bonds, including, without limitation, any Bonds offered and sold by
the Remarketing Agent pursuant to this Agreement, and may join in any action which any Owner
may be entitled to take with like effect as if it did not act in any capacity hereunder. The
Remarketing Agent, in its individual capacity, either as principal or agent, may also engage in or
be interested in any financial or other transaction with the Commission and may act as
depository or agent for any committee or body of Owners of Bonds or other obligations of the
Commission as freely as if it did not act in any capacity hereunder.
(b) Nothing in this Agreement shall be deemed to constitute the Remarketing Agent
an underwriter of the Bonds or to obligate the Remarketing Agreement to purchase any Bonds at
any time.
Section 13. Intention of Parties. It is the express intention of the parties hereto that any
purchase, sale or transfer of any Bonds, as herein provided, including to the Commission, shall
not constitute or be construed to be the extinguishment of any Bonds or the indebtedness
represented thereby or the reissuance of any Bonds.
Section 14. Miscellaneous. (a) Except as otherwise specifically provided in this
Agreement, all notices, demands and formal actions under this Agreement shall be in writing and
either (i) hand -delivered, (ii) sent by Electronic Means, or (iii) mailed by registered or certified
mail, return receipt requested, postage prepaid, to:
The Remarketing Agent:
[Name of Remarketing Agent]
[Address]
Attention:
Telephone:
With a copy to:
The Commission:
for delivery by overnight courier:
Riverside County Transportation Commission
4080 Lemon Street, 3'd Floor
Riverside, CA 92501
Attention: Chief Financial Officer
Telephone: 951-787-7926
Facsimile: 951-787-7920
E-mail: ttrevino@rctc.org
8
56357.5 033083 AGMT
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"
f o r d e l i v e r y b y U . S . M a i l :
P . O . B o x 1 2 0 0 8
R i v e r s i d e , C A 9 2 5 0 2
T h e T r u s t e e :
U . S . B a n k N a t i o n a l A s s o c i a t i o n
6 3 3 W e s t F i f t h S t r e e t , 2 4 t F l o o r
L o s A n g e l e s , C A 9 0 0 7 1
A t t e n t i o n : A s h r a f A l m u r d a a h
T e l e p h o n e : 2 1 3 - 6 1 5 - 6 0 0 2
F a c s i m i l e : 2 1 3 - 6 1 5 - 6 1 9 9
E - m a i l : a s h r a f . a l m u r d a a h @ u s b a n k . c o m
T h e 2 0 0 9 L i q u i d i t y P r o v i d e r :
J P M o r g a n C h a s e B a n k , N . A .
2 7 0 P a r k A v e n u e , 6 t F l o o r
M a i l C o d e : N Y 1 - K 9 3 4
N e w Y o r k , N Y 1 0 0 1 7
A t t e n t i o n : T i m o t h y S e l f , E x e c u t i v e D i r e c t o r
T e l e p h o n e : 2 1 2 - 2 7 0 - 4 9 4 6
F a c s i m i l e : 9 1 7 - 4 6 3 - 0 1 2 6
E - m a i l : t i m o t h y . a . s e l f @ j p m c h a s e . c o m
E a c h p a r t y h e r e t o m a y , b y n o t i c e g i v e n u n d e r t h i s A g r e e m e n t t o t h e o t h e r p a r t i e s
d e s c r i b e d a b o v e , d e s i g n a t e o t h e r a d d r e s s e s t o w h i c h s u b s e q u e n t n o t i c e s , r e q u e s t s , r e p o r t s o r
o t h e r c o m m u n i c a t i o n s s h a l l b e d i r e c t e d .
( b ) T h i s A g r e e m e n t s h a l l i n u r e t o t h e b e n e f i t o f a n d b e b i n d i n g o n l y u p o n t h e p a r t i e s
h e r e t o a n d t h e i r r e s p e c t i v e s u c c e s s o r s a n d a s s i g n s . T h e t e r m s " s u c c e s s o r s " a n d " a s s i g n s " s h a l l
n o t i n c l u d e a n y p u r c h a s e r o f a n y o f t h e B o n d s m e r e l y b e c a u s e o f s u c h p u r c h a s e . N e i t h e r t h e
2 0 0 9 L i q u i d i t y P r o v i d e r n o r a n y O w n e r o r o t h e r t h i r d p a r t y s h a l l h a v e a n y r i g h t s o r p r i v i l e g e s
h e r e u n d e r .
( c ) A l l o f t h e r e p r e s e n t a t i o n s a n d w a r r a n t i e s o f t h e C o m m i s s i o n a n d t h e R e m a r k e t i n g
A g e n t i n t h i s A g r e e m e n t s h a l l r e m a i n o p e r a t i v e a n d i n f u l l f o r c e a n d e f f e c t , r e g a r d l e s s o f ( i ) a n y
i n v e s t i g a t i o n m a d e b y o r o n b e h a l f o f t h e R e m a r k e t i n g A g e n t o r t h e C o m m i s s i o n , ( i i ) t h e
o f f e r i n g a n d s a l e o f a n d a n y p a y m e n t f o r a n y B o n d s h e r e u n d e r , o r ( i i i ) s u s p e n s i o n , t e r m i n a t i o n o r
c a n c e l l a t i o n o f t h i s A g r e e m e n t .
( d ) T h i s A g r e e m e n t a n d e a c h p r o v i s i o n h e r e o f m a y b e a m e n d e d , c h a n g e d , w a i v e d ,
d i s c h a r g e d o r t e r m i n a t e d o n l y b y a n i n s t r u m e n t i n w r i t i n g s i g n e d b y t h e p a r t i e s h e r e t o .
9
5 6 3 5 7 . 5 0 3 3 0 8 3 A G M T
1 6 7
(e) Nothing herein shall be construed to make any party an employee of the other or
to establish any fiduciary relationship between the parties except as expressly provided herein.
(f) If any provision of this Agreement shall be held or deemed to be or shall, in fact,
be invalid, inoperative or unenforceable for any reason, such circumstances shall not have the
effect of rendering any other provision or provisions of this Agreement invalid, inoperative or
unenforceable to any extent whatsoever.
(g) This Agreement may be executed in several counterparts, each of which shall be
regarded as an original and all of which shall constitute one and the same document.
10
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"
I N W I T N E S S W H E R E O F , t h e p a r t i e s h e r e t o h a v e e x e c u t e d t h i s A g r e e m e n t a s o f t h e d a t e
f i r s t a b o v e w r i t t e n .
R I V E R S I D E C O U N T Y T R A N S P O R T A T I O N
C O M M I S S I O N
B y :
N a m e :
T i t l e :
[ N A M E O F R E M A R K E T I N G A G E N T ]
B y :
N a m e :
T i t l e :
5 6 3 5 7 . 5 0 3 3 0 8 3 A G M T
1 6 9
ATTACHMENT 6
NP DRAFT DATED 7/24/09
STANDBY BOND PURCHASE AGREEMENT
by and between
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
and
JPMORGAN CHASE BANK, NATIONAL ASSOCIATION
Dated as of , 2009
$1 1 Riverside County Transportation Commission
2009 Sales Tax Revenue Bonds (Limited Tax Bonds)
2009 Series A-1
12629579.4
170
"
T A B L E O F C O N T E N T S
A R T I C L E I D E F I N I T I O N S 2
S e c t i o n 1 . 1 . S p e c i f i c T e r m s 2
S e c t i o n 1 . 2 . I n c o r p o r a t i o n o f C e r t a i n D e f i n i t i o n s b y R e f e r e n c e 1 1
S e c t i o n 1 . 3 . A c c o u n t i n g M a t t e r s 1 1
S e c t i o n 1 . 4 . I n t e r p r e t a t i o n 1 1
A R T I C L E I I T H E C O M M I T M E N T ; F E E S 1 1
S e c t i o n 2 . 1 . C o m m i t m e n t t o P u r c h a s e B o n d s 1 1
S e c t i o n 2 . 2 . B a n k B o n d s 1 2
S e c t i o n 2 . 3 . M e t h o d o f P u r c h a s i n g 1 2
S e c t i o n 2 . 4 . M a n d a t o r y R e d u c t i o n s o f A v a i l a b l e C o m m i t m e n t ; T e r m i n a t i o n ; S u b s t i t u t i o n 1 3
S e c t i o n 2 . 5 . S a l e o f B a n k B o n d s 1 4
S e c t i o n 2 . 6 . R i g h t s o f B a n k O w n e r s 1 6
S e c t i o n 2 . 7 . C o m m i t m e n t F e e s a n d O t h e r F e e s 1 6
S e c t i o n 2 . 8 . N e t o f T a x e s , E t c 1 7
S e c t i o n 2 . 9 . I n c r e a s e d C o s t s 1 8
S e c t i o n 2 . 1 0 . C o m p u t a t i o n s ; P a y m e n t s 2 0
S e c t i o n 2 . 1 1 . N a t u r e o f O b l i g a t i o n s 2 1
A R T I C L E I I I B A N K B O N D S 2 1
S e c t i o n 3 . 1 . M a t u r i t y ; I n t e r e s t 2 1
A R T I C L E I V C O N D I T I O N S P R E C E D E N T T O E F F E C T I V E N E S S 2 3
A R T I C L E V R E P R E S E N T A T I O N S A N D W A R R A N T I E S 2 6
S e c t i o n 5 . 1 . D u e O r g a n i z a t i o n ; P o w e r a n d A u t h o r i t y 2 6
S e c t i o n 5 . 2 . D u e A u t h o r i z a t i o n ; N o V i o l a t i o n 2 6
S e c t i o n 5 . 3 . E n f o r c e a b i l i t y 2 6
S e c t i o n 5 . 4 . D i s c l o s u r e 2 7
S e c t i o n 5 . 5 . N o L i t i g a t i o n 2 7
S e c t i o n 5 . 6 . C o n s e n t s 2 7
S e c t i o n 5 . 7 . N o P r o p o s e d L e g a l C h a n g e s 2 7
S e c t i o n 5 . 8 . N o S o v e r e i g n I m m u n i t y 2 8
S e c t i o n 5 . 9 . I n c o r p o r a t i o n o f R e p r e s e n t a t i o n s a n d W a r r a n t i e s 2 8
S e c t i o n 5 . 1 0 . B a n k B o n d s 2 8
S e c t i o n 5 . 1 1 . F i n a n c i a l S t a t e m e n t s 2 8
S e c t i o n 5 . 1 2 . C o m p l i a n c e w i t h L a w s a n d C o n t r a c t s 2 8
S e c t i o n 5 . 1 3 . C o m p l e t e a n d C o r r e c t I n f o r m a t i o n 2 9
S e c t i o n 5 . 1 4 . F e d e r a l R e s e r v e B o a r d R e g u l a t i o n s 2 9
S e c t i o n 5 . 1 5 . I n v e s t m e n t C o m p a n y A c t 2 9
S e c t i o n 5 . 1 6 . T r u s t e e a n d R e m a r k e t i n g A g e n t 2 9
S e c t i o n 5 . 1 7 . T a x E x e m p t S t a t u s 3 0
1 2 6 2 9 5 7 9 . 4
- i -
1 7 1
Section 5.18. Permitted Investments 30
Section 5.19. Compliance with this Agreement 30
Section 5.20. Pledge of Sales Tax Revenues 30
Section 5.21. Bonds 30
Section 5.22. Related Documents 30
ARTICLE VI CONDITIONS PRECEDENT TO PURCHASE 31
Section 6.1. Conditions 31
ARTICLE VII COVENANTS 32
Section 7.1. Affirmative Covenants of the Commission 32
Section 7.2. Negative Covenants of the Commission 38
ARTICLE VIII EVENTS OF DEFAULT 39
Section 8.1. Payments 39
Section 8.2. Other Payments 39
Section 8.3. Representations 39
Section 8.4. Certain Covenants 39
Section 8.5. Other Covenants 39
Section 8.6. Judgments 40
Section 8.7. Insolvency 40
Section 8.8. Invalidity 40
Section 8.9. Ratings Downgrade 41
Section 8.10. Cross Default 42
Section 8.11. Remedies 42
ARTICLE IX OBLIGATIONS ABSOLUTE 45
Section 9.1. Obligations Absolute 45
ARTICLE X MISCELLANEOUS 46
Section 10.1. Liability of the Bank 46
Section 10.2. Covenant of the Bank 47
Section 10.3. Costs and Taxes; Expenses; Indemnification 47
Section 10.4. Notices 48
Section 10.5. Successors, Participants and Assigns 49
Section 10.6. Governing Law; Waiver of Trial by Jury; Miscellaneous 50
Section 10.7. No Waivers, Amendments, Etc 50
Section 10.8. Counterparts 51
Section 10.9. Source of Funds 51
Section 10.10. Term of the Agreement; Survival 51
Section 10.11. Headings 51
Section 10.12. Complete and Controlling Agreement 52
Section 10.13. Beneficiaries 52
Section 10.14. Severability 52
Section 10.15. Patriot Act 52
12629579.4
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"
S C H E D U L E 1
E X H I B I T A - N O T I C E O F B A N K P U R C H A S E ( O p t i o n a l T e n d e r ) A - 1
E X H I B I T B - N O T I C E O F B A N K P U R C H A S E ( M a n d a t o r y T e n d e r ) B - 1
E X H I B I T C - F O R M O F R E Q U E S T F O R E X T E N S I O N O F E X P I R A T I O N D A T E C - 1
E X H I B I T D F O R M O F L E T T E R F R O M T R U S T E E D - 1
S C H E D U L E I S - 1
1 2 6 2 9 5 7 9 . 4
1 7 3
"
S T A N D B Y B O N D P U R C H A S E A G R E E M E N T
T h i s S T A N D B Y B O N D P U R C H A S E A G R E E M E N T , d a t e d a s o f [ ] , 2 0 0 9 ( t h i s
" A g r e e m e n t " ) , b y a n d b e t w e e n R I V E R S I D E C O U N T Y T R A N S P O R T A T I O N C O M M I S S I O N
( t h e " C o m m i s s i o n " ) a n d J P M O R G A N C H A S E B A N K , N A T I O N A L A S S O C I A T I O N ( t h e
" B a n k " ) .
W I T N E S S E T H :
W H E R E A S , t h e C o m m i s s i o n h a s p r e v i o u s l y i s s u e d t h e R i v e r s i d e C o u n t y T r a n s p o r t a t i o n
C o m m i s s i o n S a l e s T a x R e v e n u e B o n d s ( L i m i t e d T a x B o n d s ) S e r i e s 2 0 0 8 , c u r r e n t l y o u t s t a n d i n g
i n t h e a g g r e g a t e p r i n c i p a l a m o u n t o f $ 1 2 6 , 3 9 5 , 0 0 0 ( t h e " 2 0 0 8 B o n d s " ) p u r s u a n t t o a n I n d e n t u r e ,
d a t e d a s o f J u n e 1 , 2 0 0 8 ( t h e " 2 0 0 8 I n d e n t u r e " ) , t h e F i r s t S u p p l e m e n t a l I n d e n t u r e , d a t e d a s o f
J u n e 1 , 2 0 0 8 ( t h e " F i r s t S u p p l e m e n t a l I n d e n t u r e " ) , a n d t h e S e c o n d S u p p l e m e n t a l I n d e n t u r e ,
d a t e d a s o f O c t o b e r 1 , 2 0 0 9 ( t h e " S e c o n d S u p p l e m e n t a l I n d e n t u r e " a n d , t o g e t h e r w i t h t h e 2 0 0 8
I n d e n t u r e a n d t h e F i r s t S u p p l e m e n t a l I n d e n t u r e , t h e " I n d e n t u r e " ) , e a c h b e t w e e n t h e C o m m i s s i o n
a n d U . S . B a n k N a t i o n a l A s s o c i a t i o n , a s t r u s t e e ( t h e " T r u s t e e " ) ;
W H E R E A S , t h e C o m m i s s i o n i s i s s u i n g $ [ ] p r i n c i p a l a m o u n t o f R i v e r s i d e
C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n S a l e s T a x R e v e n u e B o n d s ( L i m i t e d T a x B o n d s ) , 2 0 0 9
S e r i e s A - 1 ( t h e " 2 0 0 9 S e r i e s A - I B o n d s " ) , $ [ ] p r i n c i p a l a m o u n t o f R i v e r s i d e C o u n t y
T r a n s p o r t a t i o n C o m m i s s i o n S a l e s T a x R e v e n u e B o n d s ( L i m i t e d T a x B o n d s ) , 2 0 0 9 S e r i e s A - 2
( t h e " 2 0 0 9 S e r i e s A - 2 B o n d s " ) a n d $ [ ] p r i n c i p a l a m o u n t o f R i v e r s i d e C o u n t y
T r a n s p o r t a t i o n C o m m i s s i o n S a l e s T a x R e v e n u e B o n d s ( L i m i t e d T a x B o n d s ) , 2 0 0 9 S e r i e s A - 3
( t h e " 2 0 0 9 S e r i e s A - 3 B o n d s " a n d , t o g e t h e r w i t h t h e S e r i e s A - 1 B o n d s a n d t h e S e r i e s A - 2
B o n d s , t h e " 2 0 0 9 B o n d s " ) f o r t h e p u r p o s e o f r e f u n d i n g $ [ ] p r i n c i p a l a m o u n t o f t h e
C o m m i s s i o n ' s o u t s t a n d i n g C o m m e r c i a l P a p e r N o t e s ( L i m i t e d T a x B o n d s ) , S e r i e s A a n d S e r i e s
B , o f r e f u n d i n g a l l o f t h e C o m m i s s i o n ' s 2 0 0 8 B o n d s , [ a n d t o p a y a c c r u e d i n t e r e s t t h e r e o n , t o
f u n d i n t e r e s t o n t h e 2 0 0 9 S e r i e s A - 1 B o n d s t o [ ] , 2 0 [ ] , [ t o p a y s w a p t e r m i n a t i o n
p a y m e n t s , i f a n y , ] t o f u n d a r e s e r v e f u n d a n d t o p a y c o s t s o f i s s u a n c e , a l l a s p r o v i d e d i n t h e
S e c o n d S u p p l e m e n t a l I n d e n t u r e ;
W H E R E A S , t h e C o m m i s s i o n w i s h e s t o e n s u r e t h e l i q u i d i t y o f t h e 2 0 0 9 S e r i e s A - 1 B o n d s
b y p r o v i d i n g f o r t h e p u r c h a s e b y t h e B a n k o f t h e 2 0 0 9 S e r i e s A - 1 B o n d s w h i c h a r e n o t
r e m a r k e t e d u p o n c e r t a i n t e n d e r s b y t h e o w n e r s t h e r e o f o n o r p r i o r t o t h e l a s t d a y o f t h e
C o m m i t m e n t P e r i o d ( a s d e f i n e d b e l o w ) , a s p r o v i d e d h e r e i n ;
W H E R E A S , t h e B a n k i s w i l l i n g , u p o n t h e o c c u r r e n c e o f c e r t a i n e v e n t s , t o p u r c h a s e 2 0 0 9
S e r i e s A - 1 B o n d s t e n d e r e d b y t h e o w n e r s t h e r e o f b u t n o t r e m a r k e t e d , u p o n t h e t e r m s a n d
c o n d i t i o n s s e t f o r t h i n t h i s A g r e e m e n t ; a n d
N O W , T H E R E F O R E , t h e p a r t i e s h e r e t o a g r e e a s f o l l o w s :
1 2 6 2 9 5 7 9 . 4
1 7 4
ARTICLE I
DEFINITIONS
Section 1.1. Specific Terms.
As used herein, the following terms have the meanings indicated below or in the
referenced Section of this Agreement, unless the context clearly indicates otherwise:
"Act" has the meaning assigned to that term in the Indenture.
"Affiliate" means any other Person controlling or controlled by or under common control
with the Commission. For purposes of this definition, "control," when used with respect to any
specified Person, means the power to direct the management and policies of such Person, directly
or indirectly, whether through the ownership of voting securities, .by contract or otherwise.
"Agreement' means this Standby Bond Purchase Agreement, including any and all
amendments and supplements hereto. The Commission hereby agrees that, for all purposes of
the Indenture, this Agreement shall constitute and be treated as a "Liquidity Facility," as such
term is defined in the Indenture.
"Alternate Liquidity Facility" has the meaning assigned to such term in the Indenture.
"Amendment Fee" has the meaning assigned to such term in Section 2.7(b) hereof.
"Authorized Representative" has the meaning assigned to such term in the Indenture.
"Available Commitment' as of any day means the sum of the Available Principal
Commitment and the Available Interest Commitment, in each case, as of such day.
"Available Interest Commitment" means an amount equal to $[ 1 (which
amount equals [34] days' interest on the Available Principal Commitment for the 2009 Series A-
1 Bonds based upon an assumed rate of interest of [12.00]% per annum and a 365-day year
calculated on the basis of the actual number of days elapsed), as such amount shall be adjusted
from time to time as follows:
(A) downward by an amount that bears the same proportion to such amount as
the amount of any reduction in the Available Principal Commitment, in accordance with
clause (a) or (b) of the definition herein of Available Principal Commitment, bears to the
initial Available Principal Commitment; and
(B) upward by an amount that bears the same proportion to such initial amount
as the amount of any increase in the Available Principal Commitment, in accordance with
clause (c) of the definition herein of Available Principal Commitment, bears to the initial
Available Principal Commitment.
12629579.4
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175
"
"
" A v a i l a b l e P r i n c i p a l C o m m i t m e n t " m e a n s i n i t i a l l y t h e a g g r e g a t e p r i n c i p a l a m o u n t o f t h e
2 0 0 9 S e r i e s A - 1 B o n d s o u t s t a n d i n g o f $ [ ] a n d , t h e r e a f t e r , m e a n s s u c h i n i t i a l a m o u n t
a d j u s t e d f r o m t i m e t o t i m e a s f o l l o w s :
( a ) d o w n w a r d b y t h e a m o u n t o f a n y m a n d a t o r y r e d u c t i o n o f t h e A v a i l a b l e
P r i n c i p a l C o m m i t m e n t p u r s u a n t t o S e c t i o n 2 . 4 h e r e o f ;
( b ) d o w n w a r d b y t h e p r i n c i p a l a m o u n t o f a n y 2 0 0 9 S e r i e s A - 1 B o n d s
p u r c h a s e d b y t h e B a n k p u r s u a n t t o S e c t i o n 2 . 1 h e r e o f ; a n d
( c ) u p w a r d b y t h e p r i n c i p a l a m o u n t o f a n y 2 0 0 9 S e r i e s A - 1 B o n d s t h e r e t o f o r e
p u r c h a s e d b y t h e B a n k p u r s u a n t t o S e c t i o n 2 . 1 h e r e o f w h i c h a r e r e m a r k e t e d ( o r d e e m e d
t o b e r e m a r k e t e d ) p u r s u a n t t o S e c t i o n 2 . 5 ( c ) h e r e o f b y t h e R e m a r k e t i n g A g e n t a n d f o r
w h i c h t h e B a n k O w n e r h a s r e c e i v e d i m m e d i a t e l y a v a i l a b l e f u n d s e q u a l t o t h e p r i n c i p a l
a m o u n t t h e r e o f a n d a c c r u e d i n t e r e s t t h e r e o n ;
p r o v i d e d , h o w e v e r , t h a t t h e s u m o f ( i ) t h e A v a i l a b l e P r i n c i p a l C o m m i t m e n t p l u s ( i i ) t h e
a g g r e g a t e p r i n c i p a l a m o u n t o f B a n k B o n d s s h a l l n e v e r e x c e e d $ [ 1 . A n y a d j u s t m e n t t o
t h e A v a i l a b l e P r i n c i p a l C o m m i t m e n t p u r s u a n t t o c l a u s e ( a ) , ( b ) o r ( c ) h e r e o f s h a l l o c c u r
s i m u l t a n e o u s l y w i t h t h e o c c u r r e n c e o f t h e e v e n t s d e s c r i b e d i n s u c h c l a u s e s .
" B a n k " h a s t h e m e a n i n g a s s i g n e d t o s u c h t e r m i n t h e i n t r o d u c t o r y p a r a g r a p h , a n d
i n c l u d e s a n y s u c c e s s o r o r a s s i g n p e r m i t t e d h e r e b y . T h e C o m m i s s i o n h e r e b y a g r e e s t h a t , f o r a l l
p u r p o s e s o f t h e I n d e n t u r e , t h e B a n k s h a l l c o n s t i t u t e a n d b e t r e a t e d a s a " L i q u i d i t y P r o v i d e r , " a s
s u c h t e r m i s d e f i n e d i n t h e I n d e n t u r e .
" B a n k B o n d A m o r t i z a t i o n P e r i o d " m e a n s t h e p e r i o d c o m m e n c i n g o n t h e f i r s t t o o c c u r o f
( a ) t h e o n e h u n d r e d e i g h t y - f i r s t ( 1 8 1 ' ) d a y i m m e d i a t e l y f o l l o w i n g t h e P u r c h a s e D a t e a n d ( b ) t h e
l a s t d a y o f t h e C o m m i t m e n t P e r i o d , a n d e n d i n g , s u b j e c t t o s a t i s f a c t i o n o f t h e c o n d i t i o n s s e t f o r t h
i n S e c t i o n 6 . 2 h e r e o f , o n t h e f i r s t t o o c c u r o f ( i ) t h e t h i r d ( 3 r d ) a n n i v e r s a r y o f t h e d a t e o n w h i c h
t h e B a n k B o n d A m o r t i z a t i o n P e r i o d c o m m e n c e d , ( i i ) t h e d a t e o n w h i c h t h e r e l a t e d B a n k B o n d i s
r e d e e m e d , d e f e a s e d , a c c e l e r a t e d o r o t h e r w i s e p a i d i n a c c o r d a n c e w i t h i t s t e r m s , ( i i i ) t h e d a t e o f
t h e r e m a r k e t i n g o f s u c h B a n k B o n d , ( i v ) t h e d a t e o n w h i c h s u c h B a n k B o n d m a t u r e s i n
a c c o r d a n c e w i t h i t s t e r m s , ( v ) t h e S u b s t i t u t i o n D a t e , ( v i ) t h e C o n v e r s i o n D a t e , a n d ( v i i ) t h e d a t e
o n w h i c h t h e A v a i l a b l e C o m m i t m e n t h a s b e e n r e d u c e d t o z e r o o r t e r m i n a t e d i n i t s e n t i r e t y
p u r s u a n t t o S e c t i o n 2 . 4 o r S e c t i o n 8 . 1 1 h e r e o f .
" B a n k B o n d A m o r t i z a t i o n R a t e " m e a n s t h e B a s e R a t e p l u s o n e p e r c e n t ( 1 . 0 % ) p e r
a n n u m ; p r o v i d e d , h o w e v e r , t h i s r a t e s h a l l n o t e x c e e d t h e M a x i m u m R a t e .
" B a n k B o n d s " m e a n s e a c h 2 0 0 9 S e r i e s A - 1 B o n d p u r c h a s e d b y t h e B a n k p u r s u a n t t o
S e c t i o n 2 . 1 h e r e o f a n d h e l d b y o r f o r t h e a c c o u n t o f t h e B a n k o r a s u b s e q u e n t B a n k O w n e r i n
a c c o r d a n c e w i t h t h e t e r m s o f t h i s A g r e e m e n t , u n t i l p u r c h a s e d o r r e t a i n e d i n a c c o r d a n c e w i t h
S e c t i o n 2 . 5 ( c ) o r r e d e e m e d i n a c c o r d a n c e w i t h S e c t i o n 3 . 1 o r o t h e r w i s e p a i d i n f u l l . T h e
C o m m i s s i o n h e r e b y a g r e e s t h a t , f o r a l l p u r p o s e s o f t h e I n d e n t u r e , B a n k B o n d s h e r e u n d e r s h a l l
c o n s t i t u t e a n d b e t r e a t e d a s " L i q u i d i t y F a c i l i t y B o n d s , " a s s u c h t e r m i s d e f i n e d i n t h e I n d e n t u r e .
1 2 6 2 9 5 7 9 . 4
" B a n k I n f o r m a t i o n " h a s t h e m e a n i n g a s s i g n e d t o s u c h t e r m i n S e c t i o n 1 0 . 2 h e r e o f .
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1 7 6
"Bank Owner" means the Bank (but only in its capacity as owner (which, as used herein,
shall mean beneficial owner if, at the relevant time, Bank Bonds are Book Entry Bonds) of Bank
Bonds pursuant to this Agreement) or any other Person to whom the Bank or a subsequent Bank
Owner has sold Bank Bonds in accordance with Section 2.5(a) hereof.
"Bank Rate" means, for each period specified below, beginning with and including the
date funds are advanced hereunder and ending on but excluding the date they are repaid in full
with interest thereon as provided herein, the interest rate specified with respect to such period,
which interest rates shall be computed on the basis set forth in Section 2.10(a) hereof:
Period
I. Purchase Date through the earlier to occur of the last day
of the Commitment Period and the 90`h day immediately
following the Purchase Date
II. The earlier to occur of the last day of the Commitment Bank Bond
Period and the 91a day immediately following the Amortization Rate
Purchase Date and thereafter
Rate
Base Rate
provided, however, that (a) upon and following the occurrence of an Event of Default hereunder,
all amounts due hereunder shall bear interest in an amount equal to the Default Rate, (b) at no
time shall the Bank Rate exceed the Maximum Rate and (c) notwithstanding the time periods set
forth above, the Bank Bond Amortization Rate shall be applicable with respect to all Eligible
Bonds purchased by the Bank on the last day of the Commitment Period from and including such
day.
"Banking Arrangements" means (a) the agreements of the Bank and the Commission set
forth in this Agreement and the transactions contemplated thereby, including, without limitation,
(i) any commitment to extend credit, to issue any credit or liquidity facility, to purchase any
obligation of or for the benefit of the Commission, or to extend any other financial
accommodation, (ii) any issuance, extension or maintenance of any of the foregoing, and (iii)
any pledge, purchase or carrying of any obligation of or for the benefit of the Commission, and
(b) any participation agreement or similar arrangement entered into in connection with the
foregoing.
"Base Rate" means, for any day, the higher of (a) the Bank's U.S. prime commercial
lending rate in effect for such day (as such U.S. prime commercial lending rate is announced
from time to time by the Bank at its principal New York office) plus 1.50% per annum, (b) the
Federal Funds Rate plus 2.00% per annum and (c) 8.50% per annum. Each change in the Base
Rate shall take effect at the time of such change in such U.S. prime commercial lending rate or
the Federal Funds Rate, as the case may be. Each determination of the Base Rate by the Bank
will be conclusive and binding on the Commission, absent manifest error.
"Bond Counsel" means Orrick, Herrington & Sutcliffe LLP (or another nationally
recognized bond counsel selected by the Commission and approved in writing by the Bank).
12629579.4
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•
177
"Bond Purchase Agreement" means the bond purchase agreement between the
Commission and the initial underwriter(s) and/or purchasers of the 2009 Series A-1 Bonds.
"Bond Register" has the meaning assigned to such term in the Indenture.
"Bondholder" has the meaning assigned to such term in the Indenture.
"Book Entry Bonds" means the 2009 Series A-1 Bonds so long as the book entry system
with DTC is used for determining beneficial ownership of the 2009 Series A-1 Bonds.
"Business Day" means any day other than (a) a Saturday, Sunday or a day on which
banking institutions in the State, the State of New York or the jurisdiction in which the corporate
trust office of the Trustee is located are authorized or obligated by law or executive order to be
closed, (b) a day upon which commercial banks in the city in which is located the office of the
Bank at which advances will be paid are authorized or obligated bylaw or executive order to be
closed or (c) a day on which The New York Stock Exchange is closed.
"Change of Law" means the adoption, after the Effective Date, of or change in any law,
rule, regulation, statute, treaty, guideline or directive of any Governmental Authority or the
occurrence of the effective date of any of the foregoing if adopted prior to the Effective Date or
any change after the Effective Date in the application, interpretation or enforcement, of any of
the foregoing.
"Code" means the Internal Revenue Code of 1986, as amended from time to time.
"Commission" has the meaning assigned to such term in the introductory paragraph
hereto, and includes any successor or assign permitted hereby.
"Commitment Fee" has the meaning assigned to such term in Section 2.7(a) hereof.
"Commitment Period" means the period from the Effective Date hereof to and including
the earliest of (a) the Expiration Date, (b) the date on which no Eligible Bonds are Outstanding,
(c) the close of business on the Business Day immediately following the Conversion Date,
(d) the close of business on the thirtieth (30`h) day following the date on which a Notice of
Termination Date is received by the Commission and the Trustee pursuant to Section 8.11(c)
hereof, or if such thirtieth (30'h) day is not a Business Day, the next succeeding Business Day,
and (e) the date on which the Available Commitment has been reduced to zero or terminated in
its entirety pursuant to Section 2.4 (including a Substitution Date) or Section 8.11 hereof (other
than as set forth in clause (d) above).
"Conversion Date" means the effective date of a conversion of all the 2009 Series A-1
Bonds to bear interest at a rate of interest other than a Covered Rate.
"Covered Rate" means, with respect to the 2009 Series A-1 Bonds, the Daily Rate or the
Weekly Rate.
"Daily Rate" has the meaning assigned to such term in the Second Supplemental
Indenture.
12629579.4
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1 7 8
"Default" means any occurrence, circumstance or event, or any combination thereof,
which, with the lapse of time and/or the giving of notice, or both, would constitute an Event of
Default.
"Default Rate" means the Base Rate from time to time in effect plus three percent (3.0%)
per annum; provided, however, this rate shall not exceed the Maximum Rate.
"Default Tender" means a mandatory tender of the 2009 Series A-1 Bonds as a result of
the Bank's delivery of a Notice of Termination Date to the Trustee.
"Differential Interest Amount" means the excess of (a) interest which has accrued and
could actually be paid at the Bank Rate (subject to the Maximum Rate), as determined in
accordance with Section 3.1 hereof, up to but excluding the Sale Date or the Business Day on
which the Bank Owner elects not to sell Bank Bonds pursuant to Section 2.5(c) hereof,
less (b) the interest accrued on such 2009 Series A-1 Bonds which is received by the Bank
Owners as part of the Sale Price.
"DTC" means The Depository Trust Company, and any successor or assign.
"DTC Book -Entry Account" has the meaning assigned to such term in Exhibit D,
attached hereto.
"DTC-VRDO Notice" has the meaning assigned to such term in Exhibit D, attached
hereto.
"Effective Date" has the meaning assigned to such term in the introductory paragraph of
Article IV hereof.
"Eligible Bonds" has the meaning assigned to such term in Section 2.1 hereof.
"Event of Default" has the meaning assigned to such term in Article VIII hereof.
"Excess Bank Bond Interest" has the meaning assigned to such term in Section 2.2
hereof.
"Expiration Date" means the later of (a) 5:00 p.m., New York time, on , 2011 or, if
such day is not a Business Day, the Business Day next preceding such day, and (b) 5:00 p.m.,
New York time, on the last day of any extension of such date pursuant to Section 10.10(b) hereof
or, if such last day is not a Business Day, the Business Day next preceding such day.
"FAST Eligible Bond" has the meaning assigned to such term in Exhibit D, attached
hereto.
"Federal Funds Rate" means for any day the rate per annum (rounded upward, if
necessary, to the nearest 1/100th of 1%) equal to the weighted average of the rates on overnight
Federal funds transactions with members of the Federal Reserve System arranged by Federal
funds brokers on such day, as published by the Federal Reserve Bank of New York on the
Business Day next succeeding such day; provided that (a) if such day is not a Business Day, the
Federal Funds Rate for such day shall be the rate applicable to such transactions on the next
12629579.4 - 6 -
•
•
•
179
"
p r e c e d i n g B u s i n e s s D a y a s s o p u b l i s h e d o n t h e n e x t s u c c e e d i n g B u s i n e s s D a y , a n d ( b ) i f n o s u c h
r a t e i s s o p u b l i s h e d o n s u c h n e x t s u c c e e d i n g B u s i n e s s D a y , t h e F e d e r a l F u n d s R a t e f o r s u c h d a y
s h a l l b e t h e a v e r a g e r a t e q u o t e d t o t h e B a n k o n s u c h d a y b y t h r e e F e d e r a l f u n d s b r o k e r s s e l e c t e d
b y t h e B a n k . E a c h d e t e r m i n a t i o n o f t h e F e d e r a l F u n d s R a t e b y t h e B a n k s h a l l b e c o n c l u s i v e a n d
b i n d i n g o n t h e C o m m i s s i o n a b s e n t m a n i f e s t e r r o r .
" F e e a n d E x p e n s e s F u n d " h a s t h e m e a n i n g a s s i g n e d t o t h a t t e r m i n t h e I n d e n t u r e .
" F i t c h " m e a n s F i t c h I n c . , o r i t s s u c c e s s o r s o r a s s i g n s .
" G o v e r n m e n t a l A u t h o r i t y " m e a n s a n y n a t i o n a l , s t a t e o r l o c a l d o m e s t i c g o v e r n m e n t , a n y
p o l i t i c a l s u b d i v i s i o n t h e r e o f o r a n y o t h e r g o v e r n m e n t a l , q u a s i - g o v e r n m e n t a l , j u d i c i a l , p u b l i c o r
s t a t u t o r y i n s t r u m e n t a l i t y , a u t h o r i t y , b o d y , a g e n c y , b u r e a u o r e n t i t y ( i n c l u d i n g , w i t h r e s p e c t t o t h e
B a n k , a n y z o n i n g a u t h o r i t y , t h e F e d e r a l D e p o s i t I n s u r a n c e C o r p o r a t i o n o r t h e F e d e r a l R e s e r v e
B o a r d , a n y c e n t r a l b a n k o r a n y c o m p a r a b l e a u t h o r i t y ) , o r a n y a r b i t r a t o r w i t h a u t h o r i t y t o b i n d a
p a r t y a t l a w .
" I n d e m n i f i e d P a r t y " h a s t h e m e a n i n g a s s i g n e d t o s u c h t e r m i n S e c t i o n 1 0 . 3 h e r e o f .
" I n d e n t u r e " h a s t h e m e a n i n g a s s i g n e d t o s u c h t e r m i n t h e r e c i t a l s t o t h i s A g r e e m e n t .
" I n d e n t u r e E v e n t o f D e f a u l t " m e a n s a n " E v e n t o f D e f a u l t " a s d e f i n e d i n t h e I n d e n t u r e .
" I n t e r e s t C o m p o n e n t ' h a s t h e m e a n i n g a s s i g n e d t o s u c h t e r m i n S e c t i o n 2 . 1 h e r e o f .
" I n t e r e s t P a y m e n t D a t e " w i t h r e s p e c t t o t h e 2 0 0 9 S e r i e s A - 1 B o n d s w h i c h a r e n o t B a n k
B o n d s , h a s t h e m e a n i n g a s s i g n e d t o s u c h t e r m i n t h e I n d e n t u r e a n d , w i t h r e s p e c t t o B a n k B o n d s ,
m e a n s e a c h o f t h e d a y s d e s c r i b e d i n S e c t i o n 3 . 1 ( a ) h e r e o f .
" I n t e r e s t R a t e S w a p A g r e e m e n t " h a s t h e m e a n i n g a s s i g n e d t o t h a t t e r m i n t h e I n d e n t u r e .
" M a n d a t o r y T e n d e r " m e a n s t h e m a n d a t o r y t e n d e r o f t h e 2 0 0 9 S e r i e s A - 1 B o n d s o n a n y
d a t e o n w h i c h t h e 2 0 0 9 S e r i e s A - 1 B o n d s a r e s u b j e c t t o m a n d a t o r y t e n d e r f o r p u r c h a s e i n
a c c o r d a n c e w i t h S e c t i o n 2 2 . 0 5 ( a ) ( 1 ) , ( a ) ( 2 ) a n d ( a ) ( 6 ) o f t h e S e c o n d S u p p l e m e n t a l I n d e n t u r e .
[ T B D W H E T H E R A N D T O W H A T E X T E N T T H I S A G R E E M E N T 1 S A V A I L A B L E
T O H A N D L E M A N D A T O R Y T E N D E R S D E S C R I B E D I N S U B - C L A U S E S ( a ) ( 3 ) , ( a ) ( 4 )
a n d ( a ) ( 5 ) O F S E C T I O N 2 2 . 0 5 O F T H E S E C O N D S U P P L E M E N T A L I N D E N T U R E . ]
" M a x i m u m R a t e " m e a n s , w i t h r e s p e c t t o B a n k B o n d s , t h e l e s s e r o f ( i ) t h e m a x i m u m
l a w f u l r a t e o f i n t e r e s t p e r m i t t e d b y a p p l i c a b l e l a w a n d ( i i ) [ 2 5 . 0 0 % ] p e r a n n u m .
" M o o d y ' s " m e a n s M o o d y ' s I n v e s t o r s S e r v i c e , I n c . , a n d a n y s u c c e s s o r r a t i n g a g e n c y .
" N o t i c e o f B a n k P u r c h a s e " m e a n s ( a ) i n t h e c a s e o f a p u r c h a s e o f 2 0 0 9 S e r i e s A - 1
B o n d s b y t h e B a n k a s a r e s u l t o f a n O p t i o n a l T e n d e r , a n o t i c e i n t h e f o r m o f E x h i b i t A a t t a c h e d
h e r e t o a n d i n c o r p o r a t e d h e r e i n b y t h i s r e f e r e n c e , o r ( b ) i n t h e c a s e o f a p u r c h a s e o f 2 0 0 9 S e r i e s
A - 1 B o n d s b y t h e B a n k a s a r e s u l t o f a M a n d a t o r y T e n d e r , a n o t i c e i n t h e f o r m o f E x h i b i t B
a t t a c h e d h e r e t o a n d i n c o r p o r a t e d h e r e i n b y t h i s r e f e r e n c e .
1 2 6 2 9 5 7 9 . 4
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1 8 0
"Notice of Termination Date" has the meaning assigned to such term in Section 8.11(c)
hereof.
"Obligations" means all amounts owed by the Commission to the Bank under this
Agreement and the Bank Bonds.
"Official Statement" means the final Official Statement relating to the 2009 Series A-1
Bonds (including the cover page and all summary statements, appendices and other materials
included or incorporated by reference or attached thereto), as amended or supplemented, or any
other final official statement of the Commission used with respect to the remarketing of the 2009
Series A-1 Bonds or any supplement thereto.
"Optional Tender" means the optional tender of any of the 2009 Series A-1 Bonds in
accordance with Section 22.04 of the Second Supplemental Indenture.
"Other Liquidity Facilities" means, collectively, the 2009 Series A-2 Liquidity Facility
and the 2009 Series A-3 Liquidity Facility.
"Other Taxes" has the meaning assigned to such term in Section 2.8(a) hereof.
"Parity Obligations" means, without duplication, (a) all obligations of the Commission
for borrowed money, (b) all obligations of the Commission evidenced by bonds, debentures,
notes or other similar instruments, (c) all obligations of the Commission to pay the deferred
purchase price of property or services, except trade accounts payable arising in the ordinary
course of business, (d) all obligations of the Commission as lessee under capital leases and (e)
each Interest Rate Swap Agreement (excluding fees and expenses and termination payments on
Interest Rate Swap Agreements) entered into in connection with the 2009 Series A -I Bonds, in
each case, incurred in accordance with Section 3.05(C) of the Indenture and having a lien and
charge upon the Sales Tax Revenues that is on parity with the 2009 Series A -I Bonds.
"Participant(s)" means any banlc(s) or other financial institutions that may purchase from
the Bank a participation interest in this Agreement, any Bank Bonds pursuant to a participation
agreement between the Bank and the Participant(s).
"Payment Due Date" means any of the dates described in Section 3.1(a) relating to the
repayment of any Bank Bonds.
"Person" means an individual, a corporation, a partnership, a limited liability company,
an association, a joint venture, a trust, a business trust or any other entity or organization,
including a governmental or political subdivision or an agency or instrumentality thereof.
"Purchase Date" has the meaning assigned to such term in Section 2.3 hereof.
"Purchase Notice" has the meaning assigned to such term in Section 2.5(b) hereof.
"Purchase Price" means, with respect to any Eligible Bond as of any date, 100% of the
principal amount of such Eligible Bond plus (if the Purchase Date is not an Interest Payment
Date) accrued and unpaid interest thereon to the Purchase Date, but in no event to exceed the
12629579.4
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"
A v a i l a b l e C o m m i t m e n t ; p r o v i d e d , h o w e v e r , i f t h e P u r c h a s e D a t e f o r a n y E l i g i b l e B o n d i s a l s o a n
I n t e r e s t P a y m e n t D a t e f o r s u c h E l i g i b l e B o n d , t h e P u r c h a s e P r i c e f o r s u c h E l i g i b l e B o n d s h a l l
n o t i n c l u d e a c c r u e d b u t u n p a i d i n t e r e s t o n s u c h E l i g i b l e B o n d ; a n d p r o v i d e d , f u r t h e r , i n n o e v e n t
s h a l l t h e P u r c h a s e P r i c e o f a n y 2 0 0 9 S e r i e s A - 1 B o n d i n c l u d e a n y p r e m i u m o w e d w i t h r e s p e c t t o
a n y 2 0 0 9 S e r i e s A - 1 B o n d .
" P u r c h a s e r " h a s t h e m e a n i n g a s s i g n e d t o s u c h t e r m i n S e c t i o n 2 . 5 ( b ) h e r e o f .
" R a t i n g A g e n c y " m e a n s , i n i t i a l l y , M o o d y ' s a n d S t a n d a r d & P o o r ' s , a n d s u b s e q u e n t t o
t h e E f f e c t i v e D a t e , m e a n s a n y o t h e r n a t i o n a l l y r e c o g n i z e d r a t i n g a g e n c y o r r a t i n g a g e n c i e s
d e s i g n a t e d b y t h e C o m m i s s i o n t o m a i n t a i n a r a t i n g o r r a t i n g s o n t h e 2 0 0 9 S e r i e s A - 1 B o n d s a n d
P a r i t y O b l i g a t i o n o t h e r t h a n M o o d y ' s a n d S t a n d a r d & P o o r ' s .
" R e l a t e d D o c u m e n t s " m e a n s t h i s A g r e e m e n t , t h e 2 0 0 9 S e r i e s A - 1 B o n d s , t h e 2 0 0 9
S e r i e s A - 2 B o n d s , t h e 2 0 0 9 S e r i e s A - 3 B o n d s , t h e O t h e r L i q u i d i t y F a c i l i t i e s , t h e I n d e n t u r e a n d
t h e R e m a r k e t i n g A g r e e m e n t .
" R e m a r k e t i n g A g e n t " m e a n s B a r c l a y s C a p i t a l I n c . , a n d i t s s u c c e s s o r s a n d a s s i g n s .
" R e m a r k e t i n g A g r e e m e n t " m e a n s t h e R e m a r k e t i n g A g r e e m e n t , d a t e d a s o f
[ ] , 2 0 0 9 , b e t w e e n t h e C o m m i s s i o n a n d t h e R e m a r k e t i n g A g e n t .
" R e v e n u e F u n d " h a s t h e m e a n i n g a s s i g n e d t o s u c h t e r m i n t h e I n d e n t u r e .
" R e v e n u e s " h a s t h e m e a n i n g a s s i g n e d t o s u c h t e r m i n t h e I n d e n t u r e .
" S a l e D a t e " h a s t h e m e a n i n g a s s i g n e d t o s u c h t e r m i n S e c t i o n 2 . 5 ( b ) h e r e o f .
" S a l e P r i c e " h a s t h e m e a n i n g a s s i g n e d t o s u c h t e r m i n S e c t i o n 2 . 5 ( b ) h e r e o f .
" S a l e s T a x L a w " m e a n s t h e p r o v i s i o n s o f P a r t 1 . 6 ( c o m m e n c i n g w i t h S e c t i o n 7 2 5 1 ) o f
D i v i s i o n 2 o f t h e C a l i f o m i a R e v e n u e a n d T a x a t i o n C o d e a s s u p p l e m e n t e d a n d a m e n d e d f r o m
t i m e t o t i m e .
" S a l e s T a x R e v e n u e s " h a s t h e m e a n i n g a s s i g n e d t o s u c h t e r m i n t h e I n d e n t u r e .
" S e c o n d S u p p l e m e n t a l I n d e n t u r e " m e a n s t h e S e c o n d S u p p l e m e n t a l I n d e n t u r e , d a t e d a s
o f [ ] , 2 0 0 9 b e t w e e n t h e C o m m i s s i o n a n d t h e T r u s t e e .
" S p e c i a l E v e n t o f D e f a u l t " m e a n s a n y E v e n t o f D e f a u l t s p e c i f i e d i n S e c t i o n 8 . 1 ( a ) , 8 . 6 ,
8 . 7 ( a ) , 8 . 7 ( d ) , 8 . 7 ( e ) , 8 . 8 ( a ) , 8 . 8 ( b ) , 8 . 8 ( c ) , 8 . 8 ( 0 , 8 . 9 o r 8 . 1 0 ( b ) h e r e o f , s u b j e c t t o a n y l i m i t a t i o n s
t h e r e o n a s p r o v i d e d i n S e c t i o n s 8 . 1 1 ( a ) a n d 8 . 1 1 ( b ) h e r e o f .
" S t a t e " m e a n s t h e S t a t e o f C a l i f o r n i a .
" S t a n d a r d & P o o r ' s " m e a n s S t a n d a r d & P o o r ' s R a t i n g S e r v i c e s , a D i v i s i o n o f
T h e M c G r a w - H i l l C o m p a n i e s I n c . , a n d a n y s u c c e s s o r r a t i n g a g e n c y .
1 2 6 2 9 5 7 9 . 4
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"Substitution Date" means the date that an Alternate Liquidity Facility has been
delivered to the Trustee and become effective with respect to the 2009 Series A-1 Bonds in
replacement of this Agreement.
"Subordinate Obligations" has the meaning assigned to such term in the Indenture.
"Suspension Event" means an Event of Default as described in Section 8.1(b), 8.7(b)(i),
8.8(d) or 8.8(e) hereof or a Default as described in Section 8.7(b)(ii) or 8.7(c) hereof, subject to
the provisions of Section 8.11(b) hereof.
"Taxes" has the meaning assigned to such term in Section 2.8(a) hereof.
"Termination Date" has the meaning assigned to such term in Section 8.11(b)(i) hereof.
"Termination Fee" has the meaning assigned to such term in Section 2.7(d) hereof.
"Trustee" has the meaning assigned to such term in the recitals to this Agreement.
"2008 Bonds" means the Riverside Transportation Commission Sales Tax Revenue
Bonds (Limited Tax Bonds) Series 2008, currently outstanding in the aggregate principal amount
of $126,395,000 that are being refunded with the proceeds of the 2009 Bonds.
"2009 Bonds" means, collectively, the Series 2009A-1 Bonds, the Series 2009A-2 Bonds
and the Series 2009A-3 Bonds.
"2009 Series A-1 Bonds" has the meaning assigned to such term in the recitals to this
Agreement.
"2009 Series A-2 Bonds" has the meaning assigned to such term in the recitals to this
Agreement.
"2009 Series A-3 Bonds" has the meaning assigned to such term in the recitals to this
Agreement.
"2009 Series A-2 Liquidity Facility" means the Standby Bond Purchase Agreement dated
as of , 2009 among the Commission and the Bank related to the $ Riverside
County Transportation Commission Sales Tax Revenue Bonds (Limited Tax Bonds), 2009
Series A-2.
"2009 Series A-3 Liquidity Facility" means the Standby Bond Purchase Agreement dated
as of , 2009 among the Commission and the Bank related to the S Riverside
County Transportation Commission Sales Tax Revenue Bonds (Limited Tax Bonds), 2009
Series A-3.
"U.S. Dollars" means the lawful currency of the United States of America.
"Weekly Rate" has the meaning assigned to such term in the Second Supplemental
Indenture.
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"written" or "in writing' means any form of written communication or a communication
by means of telex, telecopier device or telegraph (but shall not include email or any other form of
electronic mail unless otherwise provided in this Agreement).
Section L2. Incorporation of Certain Definitions by Reference.
Each capitalized term used herein and not defined herein shall have the meaning provided
therefor in the Indenture, unless the context otherwise requires.
Section 1.3. Accounting Matters.
All accounting terms used herein without definition shall be interpreted in accordance
with generally accepted accounting principles and, except as otherwise expressly provided
herein, all accounting determinations required to be made pursuant to this Agreement shall be
made in accordance with generally accepted accounting principles.
Section 1.4. Interpretation.
All words used herein shall be construed to be of such gender or number as the
circumstances require. Reference to any document means such document as amended or
supplemented from time to time as permitted pursuant to its terms and the terms hereof
ARTICLE II
THE COMMITMENT; FEES
Section 2.1. Commitment to Purchase Bonds.
Subject to the terms and conditions of this Agreement, including Article VI hereof, the
Bank hereby agrees from time to time during the Commitment Period to purchase, at the
Purchase Price, with immediately available funds, Bonds which bear interest at a Covered Rate
and which are not Bank Bonds or Bonds owned by or held on behalf of, for the benefit of or for
the account of, the Commission or any Affiliate of the Commission ("Eligible Bonds") which
are tendered pursuant to (i) an Optional Tender or (ii) a Mandatory Tender and which, in either
case, the Remarketing Agent has been unable to remarket. The Bank will pay said Purchase
Price with its own funds. The aggregate principal amount (or portion thereof) of any Eligible
Bond purchased on any Purchase Date shall be in an authorized denomination required by the
terms of the Indenture and, in any case, the aggregate principal amount of all the 2009 Series A-1
Bonds purchased on any Purchase Date, together with the aggregate principal amount of all Bank
Bonds then Outstanding, shall not exceed the Available Principal Commitment (calculated
without giving effect to any purchase of the 2009 Series A-1 Bonds by the Bank on such date) at
10:00 a.m., New York City time, on such date. The aggregate amount of the Purchase Price
comprising interest on the 2009 Series A-1 Bonds (the "Interest Component") purchased on any
Purchase Date shall not exceed the lesser of (a) the Available Interest Commitment on such date
and (b) the actual aggregate amount of interest accrued on each such 2009 Series A-1 Bond to
but excluding such Purchase Date.
12629579.4
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184
Section 2.2. Bank Bonds.
Any 2009 Series A-1 Bonds purchased by the Bank pursuant to Section 2.1 hereof shall
thereupon constitute Bank Bonds and have all of the characteristics of Bank Bonds as set forth
herein and in the Indenture and shall be deemed and treated by the Commission and the Trustee
like the 2009 Series A-1 Bonds that are not Bank Bonds, except with any different characteristics
as set forth herein and in the Indenture. All Bank Bonds shall bear interest at the Bank Rate. In
the event that the average Bank Rate accruing on any Bank Bonds during any period exceeds the
Maximum Rate for such period, the Bank shall receive interest on account of Bank Bonds only at
the Maximum Rate for such period (the difference between (a) the interest payable to the Bank if
the Bank Bonds had continuously borne interest at the Bank Rate and (b) the interest actually
paid to the Bank at the Maximum Rate is referred to below as the "Excess Bank Bond
Interest'. Notwithstanding any subsequent reduction in the Bank Rate, Bank Bonds shall bear
interest from and after the date on which any Excess Bank Bond Interest is accrued at the
Maximum Rate until the date on which the interest paid to the Bank on Bank Bonds in excess of
the Bank Rate equals such Excess Bank Bond Interest; provided, that, upon termination of this
Agreement, in consideration for the limitation of the rate of interest otherwise payable hereunder,
the Commission shall pay from the sources described in Section 2.11 hereof, to the extent
permitted by law, the Bank a fee equal to the amount of all unpaid Excess Bank Bond Interest.
To the extent permitted by law, interest shall accrue on, and be payable by the Commission with
respect to, all unpaid Excess Bank Bond Interest at a rate per annum equal to the Bank Rate. The
Commission shall pay to the Bank Owner accrued interest, including any accrued but unpaid
Excess Bank Bond Interest, on Bank Bonds as provided in Section 3.1 hereof. On any date on
which Excess Bank Bond Interest is due and payable, the Bank shall notify the Commission and
the Trustee as to the amount of such Excess Bank Bond Interest due on such date, together with
any interest accrued and payable thereon; provided, that the failure of the Bank to so notify the
Commission or the Trustee shall not affect the accrual of or obligation of the Commission to pay
such Excess Bank Bond Interest.
All amounts owed to the Bank hereunder with respect to Bank Bonds shall be calculated
in accordance with Section 2.10 hereof and shall become due and payable as set forth in
Section 3.1 hereof.
Section 2.3. Method of Purchasing.
(a) The Trustee shall give notice by telecopier promptly confirmed by a
written notice in the form of Exhibit A or Exhibit B, as applicable, to the Bank, pursuant to an
Optional Tender or a Mandatory Tender, no later than 12:00 noon, New York City time, on the
Business Day on which Bonds are subject to an Optional Tender or Mandatory Tender. If the
Bank receives such notice as provided above, and subject, in each case, to the satisfaction of the
conditions set forth in Article VI hereof, the Bank will transfer to the Trustee not later than
2:30 p.m., New York City time, on such date (a "Purchase Date"), in immediately available
funds, an amount equal to the aggregate Purchase Price of all or such portion of such Eligible
Bonds as requested from the Trustee. A Notice of Bank Purchase shall be irrevocable after
receipt thereof by the Bank. The Bank shall have no responsibility for, nor incur any liability in
respect of, any act, or any failure to act, by the Trustee which results in the failure of the Trustee
to effect the purchase of 2009 Series A-1 Bonds for the account of the Bank with such funds
12629579.4
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"
p r o v i d e d p u r s u a n t t o t h i s S e c t i o n 2 . 3 ( a ) o r o t h e r w i s e . T h e 2 0 0 9 S e r i e s A - 1 B o n d s p u r c h a s e d
p u r s u a n t t o t h i s S e c t i o n 2 . 3 ( a ) s h a l l b e r e g i s t e r e d i n t h e n a m e o f t h e B a n k o r , i f d i r e c t e d i n
w r i t i n g b y t h e B a n k , i t s n o m i n e e o r d e s i g n e e o n t h e p o n d R e g i s t e r a n d s h a l l b e h e l d i n t r u s t b y
t h e T r u s t e e f o r t h e b e n e f i t o f t h e B a n k . I f t h e 2 0 0 9 S e r i e s A - 1 B o n d s p u r c h a s e d p u r s u a n t t o t h i s
S e c t i o n 2 . 3 ( a ) a r e B o o k E n t r y B o n d s , t h e b e n e f i c i a l o w n e r s h i p o f s u c h 2 0 0 9 S e r i e s A - 1 B o n d s
s h a l l b e c r e d i t e d o n t h e r e c o r d s m a i n t a i n e d b y D T C t o t h e a c c o u n t o f t h e B a n k o r , i f d i r e c t e d i n
w r i t i n g b y t h e B a n k , a n o m i n e e o r d e s i g n e e o f t h e B a n k , m a i n t a i n e d a t D T C , a n d p r i o r t o t h e s a l e
o f a n y B a n k B o n d b y t h e B a n k a s p r o v i d e d i n S e c t i o n 2 . 5 ( a ) h e r e o f , t h e B a n k a g r e e s t o g i v e a l l
n o t i c e s i n t h e m a n n e r a n d b y t h e t i m e r e q u i r e d b y D T C t o e x c l u d e s u c h B a n k B o n d ( s ) f r o m t h e
M a n d a t o r y T e n d e r o f t h e 2 0 0 9 S e r i e s A - 1 B o n d s . T h e I n t e r e s t C o m p o n e n t o f t h e P u r c h a s e P r i c e
p a i d f o r s u c h 2 0 0 9 S e r i e s A - 1 B o n d s s h a l l b e p a i d t o t h e B a n k a s p r o v i d e d i n S e c t i o n 3 . 1 h e r e o f .
( b ) I f t h e B a n k r e c e i v e s a N o t i c e o f B a n k P u r c h a s e a f t e r 1 2 : 0 0 n o o n , N e w
Y o r k C i t y t i m e , o n a P u r c h a s e D a t e f r o m t h e T r u s t e e , t h e B a n k , s u b j e c t t o s a t i s f a c t i o n o f t h e
c o n d i t i o n s p r o v i d e d i n A r t i c l e V I h e r e o f , w i l l t r a n s f e r t o t h e T r u s t e e a t o r b e f o r e 2 : 3 0 p . m . , N e w
Y o r k C i t y t i m e , o n t h e B u s i n e s s D a y i m m e d i a t e l y f o l l o w i n g t h e P u r c h a s e D a t e s p e c i f i e d i n s u c h
n o t i c e , i n i m m e d i a t e l y a v a i l a b l e f u n d s , a n a m o u n t e q u a l t o t h e a g g r e g a t e P u r c h a s e P r i c e o f
E l i g i b l e B o n d s t e n d e r e d o r d e e m e d t e n d e r e d o n s u c h P u r c h a s e D a t e . I n s u c h e v e n t , a l l o t h e r
p r o v i s i o n s o f S e c t i o n 2 . 3 ( a ) s h a l l a p p l y t o t h e p u r c h a s e a n d r e g i s t r a t i o n o f B a n k B o n d s a f t e r t h e
d e l i v e r y o f a N o t i c e o f B a n k P u r c h a s e a n d t r a n s f e r o f f u n d s a s s e t f o r t h h e r e i n .
( c ) I n t h e e v e n t t h a t a n y f u n d s p a i d b y t h e B a n k t o t h e T r u s t e e p u r s u a n t t o
S e c t i o n 2 . 3 ( a ) o r ( b ) h e r e o f s h a l l n o t b e r e q u i r e d t o b e a p p l i e d t o p u r c h a s e 2 0 0 9 S e r i e s A - 1
B o n d s a s p r o v i d e d h e r e i n , s u c h f u n d s s h a l l b e h e l d a n d b e r e t u r n e d t o t h e B a n k a s s o o n a s
p r a c t i c a b l e b y t h e T r u s t e e a n d , u n t i l s o r e t u r n e d , s h a l l b e h e l d u n i n v e s t e d a n d i n t r u s t b y t h e
T r u s t e e f o r t h e a c c o u n t o f t h e B a n k . I n t h e e v e n t t h a t s u c h f u n d s a r e n o t r e t u r n e d t o t h e B a n k i n
i m m e d i a t e l y a v a i l a b l e f u n d s a s p r o v i d e d i n S e c t i o n 2 . 1 0 ( a ) h e r e o f b y 4 : 0 0 p . m . , N e w Y o r k C i t y
t i m e , o n t h e s a m e d a y o n w h i c h s u c h f u n d s w e r e a d v a n c e d , t h e C o m m i s s i o n s h a l l p a y o r c a u s e t o
b e p a i d t o t h e B a n k i n t e r e s t o n s u c h f u n d s p a y a b l e o n d e m a n d a n d , i n a n y e v e n t , o n t h e d a t e o n
w h i c h s u c h f u n d s a r e r e t u r n e d , a t a r a t e e q u a l t o t h e B a n k R a t e f o r t h e d a y s u c h f u n d s w e r e
a d v a n c e d t h r o u g h t h e d a t e w h i c h i s t w o ( 2 ) d a y s a f t e r t h e d a y s u c h f u n d s w e r e a d v a n c e d , a n d ,
t h e r e a f t e r , a t t h e D e f a u l t R a t e .
( d ) N o t w i t h s t a n d i n g a n y p r o v i s i o n s o f t h i s S e c t i o n 2 , 3 t o c o n t r a r y , t h e B a n k
a n d D T C m a y c a u s e t h e t r a n s f e r o f f u n d s a n d t h e t r a n s f e r o f a n y B a n k B o n d a s d e s c r i b e d i n t h i s
S e c t i o n 2 . 3 o n t h e b a s i s o f d e l i v e r y v e r s u s p a y m e n t o r b y s u c h o t h e r m e a n s a s s h a l l b e a c c e p t a b l e
t o t h e B a n k , t h e T r u s t e e a n d D T C a n d n o t c o n t r a r y t o t h e I n d e n t u r e .
S e c t i o n 2 . 4 . M a n d a t o r y R e d u c t i o n s o f A v a i l a b l e C o m m i t m e n t ; T e r m i n a t i o n ;
S u b s t i t u t i o n .
( a ) U p o n ( i ) a n y r e d e m p t i o n , r e p a y m e n t o r o t h e r p a y m e n t o f a l l o r a n y p o r t i o n
o f t h e p r i n c i p a l a m o u n t o f t h e 2 0 0 9 S e r i e s A - 1 B o n d s s o t h a t s u c h 2 0 0 9 S e r i e s A - 1 B o n d s s h a l l
c e a s e t o b e O u t s t a n d i n g , t h e a g g r e g a t e A v a i l a b l e P r i n c i p a l C o m m i t m e n t s h a l l , s u b j e c t t o S e c t i o n
2 . 4 ( d ) b e l o w , b e r e d u c e d b y t h e p r i n c i p a l a m o u n t o f s u c h 2 0 0 9 S e r i e s A - 1 B o n d s s o r e d e e m e d ,
r e p a i d o r o t h e r w i s e d e e m e d p a i d , a s t h e c a s e m a y b e , o r ( i i ) t h e c l o s e o f b u s i n e s s n o s o o n e r t h a n
t h e B u s i n e s s D a y i m m e d i a t e l y f o l l o w i n g t h e C o n v e r s i o n D a t e , t h e a g g r e g a t e A v a i l a b l e P r i n c i p a l
1 2 6 2 9 5 7 9 . 4
- 1 3 -
1 8 6
Commitment shall, subject to Section 2.4(d) below, be reduced to zero and, in the case of either
clause (i) or (ii) above, the Available Interest Commitment shall also be simultaneously reduced
as provided in the definition thereof in Article I hereof; provided, however, that in the event any
action described in clause (i) or (ii) above results in a reduction of the Available Commitment to
zero, all Obligations, including without limitation, all principal and interest evidenced by Bank
Bonds and all amounts payable under Article III hereof, shall be paid to the Bank up to and
including the time of said reduction as described in the notice set forth in Section 2.4(d) below.
(b) The Available Commitment shall, subject to Section 2.4(d) below,
terminate at the close of business on the Business Day immediately following the Substitution
Date. The Commission shall comply with the requirements of the Indenture with respect to the
delivery of an Alternate Liquidity Facility.
(c) Subject to satisfaction of the requirements of Section 2.7(d) hereof, the
Commission may terminate this Agreement at any time following no less than sixty (60) days'
prior written notice to the Bank and the Trustee.
(d) In connection with any reduction or termination of the Available
Commitment as described in Sections 2.4(a) and (b) above, the Trustee shall provide the Bank
with written notice of the effective date of such reduction or termination and, unless and until
said notice is received by the Bank, the Available Commitment shall not be deemed reduced
and/or terminated pursuant to the terms of Sections 2.4(a) and (b).
(e) Except as specifically provided in this Section 2.4, the Commission shall
have no right to reduce or terminate the Available Commitment.
Section 2.5. Sale of Bank Bonds.
(a) Right to Sell Bank Bonds. The Bank expressly reserves the right to sell, at
any time, Bank Bonds subject, however, to the express terms of this Agreement. The Bank
agrees that such sales (other than sales made pursuant to Section 2.5(c) hereof) will be made only
to institutional investors or other entities or individuals which customarily purchase commercial
paper or tax-exempt securities in large denominations, all in accordance with applicable
securities laws. The Bank agrees to notify the Commission, the Trustee and the Remarketing
Agent promptly of any such sale (other than a sale made pursuant to Section 2.5(c) hereof) and,
if such Bank Bond is a Book Entry Bond, specifying in accordance with DTC guidelines the
account at DTC to which such Bank Bond is credited; and to notify the transferee in writing that
(i) such 2009 Series A-1 Bond is no longer an Eligible Bond so long as it remains a Bank Bond;
and (ii) there may not be a short-term investment rating assigned to such 2009 Series A-1 Bond
so long as it remains a Bank Bond. Any Bank Owner purchasing a Bank Bond from the Bank
shall acknowledge in writing its agreement (y) not to sell such Bank Bond to any Person except
the Bank or a Purchaser identified by the Remarketing Agent pursuant to Section 2.5(b) hereof
and (z) if such Bank Bond is a Book Entry Bond, to give all notices in the manner and by the
time required by DTC to exclude such Bank Bond from Mandatory Tenders of 2009 Series A-1
Bonds while it remains a Bank Bond.
12629579.4
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( b ) P u r c h a s e N o t i c e s . P r i o r t o 1 2 : 0 0 n o o n , N e w Y o r k C i t y t i m e , o n a n y
B u s i n e s s D a y o n w h i c h a B a n k O w n e r h o l d s B a n k B o n d s , t h e R e m a r k e t i n g A g e n t m a y d e l i v e r a
n o t i c e ( a " P u r c h a s e N o t i c e " ) t o a B a n k O w n e r a s r e g i s t e r e d o n t h e B o n d R e g i s t e r a n d t o t h e
B a n k , s t a t i n g t h a t i t h a s l o c a t e d a p u r c h a s e r ( t h e " P u r c h a s e r " ) f o r s o m e o r a l l o f s u c h B a n k
B o n d s a n d t h a t s u c h P u r c h a s e r d e s i r e s t o p u r c h a s e o n t h e B u s i n e s s D a y f o l l o w i n g t h e B u s i n e s s
D a y o n w h i c h a B a n k O w n e r r e c e i v e s , p r i o r t o 1 2 : 0 0 n o o n , N e w Y o r k C i t y t i m e , a P u r c h a s e
N o t i c e ( a " S a l e D a t e ' ) a n a u t h o r i z e d d e n o m i n a t i o n o f s u c h 2 0 0 9 S e r i e s A - 1 B o n d s a t a p r i c e
e q u a l t o t h e p r i n c i p a l a m o u n t t h e r e o f , p l u s a c c r u e d i n t e r e s t t h e r e o n ( c a l c u l a t e d a s i f s u c h 2 0 0 9
S e r i e s A - 1 B o n d s w e r e n o t B a n k B o n d s ) ( t h e " S a l e P r i c e " ) ; p r o v i d e d , h o w e v e r , t h a t t h e
R e m a r k e t i n g A g e n t s h a l l n o t r e m a r k e t B a n k B o n d s f o l l o w i n g t h e d e l i v e r y o f a N o t i c e o f
T e r m i n a t i o n D a t e u n l e s s t h e P u r c h a s e r s h a l l h a v e r e c e i v e d w r i t t e n n o t i c e s t a t i n g t h a t a N o t i c e o f
T e r m i n a t i o n D a t e i s i n e f f e c t w i t h r e s p e c t t o t h e B a n k B o n d s w h i c h a r e t h e s u b j e c t o f s u c h
P u r c h a s e N o t i c e .
( c ) S a l e o f B a n k B o n d s . A B a n k O w n e r s h a l l d e c i d e w h e t h e r t o s e l l a n y B a n k
B o n d s t o a n y P u r c h a s e r a n d s h a l l g i v e n o t i c e o f s u c h d e c i s i o n t o t h e C o m m i s s i o n , t h e T r u s t e e
a n d t h e R e m a r k e t i n g A g e n t b y 3 : 0 0 p , m . , N e w Y o r k C i t y t i m e , o n t h e B u s i n e s s D a y p r e c e d i n g
t h e S a l e D a t e . I n t h e e v e n t s u c h n o t i c e i s n o t t i m e l y d e l i v e r e d b y a B a n k O w n e r , s u c h B a n k
O w n e r s h a l l b e d e e m e d t o h a v e d e t e r m i n e d t o s e l l s u c h B a n k B o n d s t o a P u r c h a s e r o n t h e S a l e
D a t e ( s u b j e c t t o r e c e i p t b y i t o f t h e f u n d s c a l l e d f o r b y t h e n e x t f o l l o w i n g s e n t e n c e ) . I f a B a n k
O w n e r d e t e r m i n e s o r i s d e e m e d t o h a v e d e t e r m i n e d t o s e l l s u c h B a n k B o n d s t o a P u r c h a s e r , s u c h
B a n k O w n e r s h a l l d e l i v e r s u c h B a n k B o n d s t o t h e T r u s t e e ( o r , i n t h e c a s e o f B a n k B o n d s w h i c h
a r e B o o k E n t r y B o n d s , s h a l l c a u s e t h e b e n e f i c i a l o w n e r s h i p t h e r e o f t o b e c r e d i t e d t o t h e a c c o u n t
o f t h e R e m a r k e t i n g A g e n t a t D T C ) b y 1 0 : 0 0 a . m . , N e w Y o r k C i t y t i m e , o n t h e S a l e D a t e a g a i n s t
r e c e i p t o f t h e S a l e P r i c e t h e r e f o r i n i m m e d i a t e l y a v a i l a b l e f u n d s o r a t t h e B a n k O w n e r ' s a d d r e s s
l i s t e d i n t h e B o n d R e g i s t e r , a n d s u c h 2 0 0 9 S e r i e s A - 1 B o n d s s h a l l t h e r e u p o n n o l o n g e r b e
c o n s i d e r e d B a n k B o n d s ; p r o v i d e d t h a t , i n t h e e v e n t t h a t t h e B a n k O w n e r h a s n o t d e l i v e r e d B a n k
B o n d s a s p r o v i d e d a b o v e a n d t h e S a l e P r i c e t h e r e f o r h a s b e e n d e l i v e r e d a s p r o v i d e d a b o v e , s u c h
B a n k B o n d s s h a l l b e d e e m e d t o h a v e b e e n d e l i v e r e d a n d s u c h 2 0 0 9 S e r i e s A - 1 B o n d s s h a l l n o
l o n g e r b e c o n s i d e r e d B a n k B o n d s . W h e n B a n k B o n d s a r e p u r c h a s e d i n a c c o r d a n c e w i t h t h i s
S e c t i o n 2 . 5 ( c ) , t h e T r u s t e e s h a l l , u p o n r e c e i p t o f s u c h B a n k B o n d s a n d u p o n r e c e i p t b y s u c h
B a n k O w n e r o f t h e S a l e P r i c e , n o t i f y t h e C o m m i s s i o n a n d t h e R e m a r k e t i n g A g e n t t h a t s u c h 2 0 0 9
S e r i e s A - 1 B o n d s a r e n o l o n g e r B a n k B o n d s . A n y i n t e r e s t a c c r u e d o n t h e B a n k B o n d s s h a l l b e
p a i d t o t h e B a n k O w n e r a s p r o v i d e d i n S e c t i o n 3 . 1 h e r e o f a n d t h e D i f f e r e n t i a l I n t e r e s t A m o u n t , i f
a n y , s h a l l b e p a i d t o s u c h B a n k O w n e r b y t h e C o m m i s s i o n o n t h e a p p l i c a b l e S a l e D a t e ; p r o v i d e d ,
h o w e v e r , t h a t , t o t h e e x t e n t p e r m i t t e d b y l a w , a n y a m o u n t r e p r e s e n t i n g D i f f e r e n t i a l I n t e r e s t
A m o u n t s h a l l , u n t i l p a i d i n f u l l , a c c r u e i n t e r e s t t h e r e o n a t t h e B a n k R a t e a n d s a i d i n t e r e s t m a y b e
p a i d o n t h e n e x t s u c c e e d i n g I n t e r e s t P a y m e n t D a t e f o r B a n k B o n d s a s s e t f o r t h i n S e c t i o n 3 . 1
h e r e o f ; p r o v i d e d f u r t h e r , h o w e v e r , t h a t s a i d i n t e r e s t o n a n y D i f f e r e n t i a l I n t e r e s t A m o u n t s h a l l ,
u n t i l p a i d i n f u l l , c o n t i n u e t o a c c r u e i n t e r e s t t h e r e o n a t t h e B a n k R a t e ( n o t w i t h s t a n d i n g
r e p a y m e n t o f t h e D i f f e r e n t i a l I n t e r e s t A m o u n t ) . A n y s a l e o f a B a n k B o n d p u r s u a n t t o t h i s
S e c t i o n 2 . 5 s h a l l b e w i t h o u t r e c o u r s e t o t h e s e l l e r a n d w i t h o u t r e p r e s e n t a t i o n o r w a r r a n t y o f a n y
k i n d . I f a B a n k O w n e r n o t i f i e s t h e C o m m i s s i o n , t h e T r u s t e e a n d t h e R e m a r k e t i n g A g e n t , a s
p r o v i d e d i n t h e f i r s t s e n t e n c e o f t h i s S e c t i o n 2 . 5 ( c ) , t h a t i t w i l l n o t s e l l i t s B a n k B o n d s , t h e
T r u s t e e s h a l l n o t i f y t h e C o m m i s s i o n , t h e R e m a r k e t i n g A g e n t , t h e B a n k a n d s u c h B a n k O w n e r
t h a t , a s o f t h e S a l e D a t e , s u c h 2 0 0 9 S e r i e s A - 1 B o n d o r 2 0 0 9 S e r i e s A - 1 B o n d s s h a l l n o l o n g e r
1 2 6 2 9 5 7 9 . 4
- 1 5 -
1 8 8
constitute Bank Bonds and such 2009 Series A-1 Bonds shall be deemed to have been
remarketed and the Available Commitment shall be appropriately increased.
(d) Continuing Obligation. Following any sale of Bank Bonds pursuant to
Section 2.5(c) or otherwise or any election to retain Bonds pursuant to Section 2.5(c), the Bank
and each Bank Owner shall retain the right to receive payment from the Commission of any
accrued Differential Interest Amount as provided in Section 3.1 hereof and in the Indenture.
(e) Delivery Versus Payment. Notwithstanding any provisions of this Section
2.5 to contrary, the Bank and DTC may cause the transfer of any Bank Bond and the transfer of
any funds described in this Section 2.5 on the basis of delivery versus payment or by such other
means as shall be acceptable to the Bank, the Trustee and DTC and not contrary to the Indenture.
Section 2.6. Rights of Bank Owners.
Upon purchasing Bank Bonds, Bank Owners shall be entitled to and, where necessary,
shall be deemed assigned all rights and privileges accorded Bondholders under the Indenture,
other than as provided in Section 2.5 hereof, and any additional rights and privileges as to
payment of interest and principal that are provided by this Agreement with respect to Bank
Bonds. Upon purchasing Bank Bonds, Bank Owners shall be recognized by the Commission and
the Trustee as the true and lawful owners (or, in the case of Book Entry Bonds, beneficial
owners) of the Bank Bonds, free from any claims, liens, security interests, equitable interests and
other interests of the Commission, except as such interests might exist under the terms of the
Bank Bonds with respect to all Owners (or, in the case of Book Entry Bonds, beneficial owners)
of the 2009 Series A-1 Bonds.
Section 2.7. Commitment Fees and Other Fees.
(a) Commitment Fee. The Commission hereby agrees to pay to the Bank a
commitment fee with respect to the commitment of the Bank at the rate of 1.25% per annum of
the Available Commitment as may be adjusted from time to time pursuant to Schedule I attached
hereto (the "Commitment Fee") of the Bank commencing on the Effective Date and continuing
for the duration of the Commitment Period. Such fee shall be payable in immediately available
funds in arrears commencing on the first Business Day of January, 2010, with respect to the
period from the Effective Date to such first Business Day of January, 2010, and, thereafter, on
the first Business Day of each April, July, October and January and upon the last day of the
Commitment Period, in all cases, covering the period from the date of the immediately preceding
payment to such Business Day. If the Available Commitment is terminated in its entirety, the
accrued but unpaid Commitment Fee shall be payable on the effective date of such termination in
addition to any other amounts required hereunder. The Bank's determination of the
Commitment Fee pursuant hereto shall be conclusive absent manifest error.
(b) Amendment/Transfer Fee. In connection with the written request by the
Commission or the Trustee for (i) any amendment, supplement, waiver, consent or other
modification of this Agreement, the Indenture or any other Related Document requiring any
action on the part of the Bank, or (ii) any transfer of the rights and obligations under this
Agreement by the Commission or the Trustee, the Commission shall pay or cause to be paid to
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t h e B a n k a f e e o f $ 5 , 0 0 0 ( t h e " A m e n d m e n t F e e " ) , p l u s r e a s o n a b l e f e e s a n d e x p e n s e s o f c o u n s e l
t o t h e B a n k , f o r e a c h a m e n d m e n t , s u p p l e m e n t , w a i v e r , c o n s e n t o r o t h e r m o d i f i c a t i o n h e r e o f ;
p r o v i d e d h o w e v e r , a n a m e n d m e n t o f t h i s A g r e e m e n t t h a t e n t a i l s n o t h i n g m o r e t h a n a n e x t e n s i o n
o f t h e t e r m s h a l l n o t r e q u i r e t h e p a y m e n t o f t h e A m e n d m e n t F e e .
( c ) P u r c h a s e F e e . T h e C o m m i s s i o n s h a l l p a y t o t h e B a n k a p u r c h a s e f e e i n
a n a m o u n t e q u a l t o $ 5 0 0 f o r e a c h p u r c h a s e o f 2 0 0 9 S e r i e s A - 1 B o n d s b y t h e B a n k , w h i c h
a m o u n t s h a l l b e p a y a b l e o n e a c h d a t e t h a t t h e C o m m i s s i o n s h a l l p a y t h e C o m m i t m e n t F e e d u e
p u r s u a n t t o S e c t i o n 2 . 7 ( a ) .
( d ) T e r m i n a t i o n F e e . I n t h e e v e n t t h e C o m m i s s i o n r e p l a c e s o r t e r m i n a t e s t h i s
A g r e e m e n t p r i o r t o t h e E x p i r a t i o n D a t e , t h e n t h e C o m m i s s i o n s h a l l p a y t o t h e B a n k , i n a d d i t i o n
t o a l l o t h e r O b l i g a t i o n s t h a t m a y b e d u e a n d p a y a b l e a t s u c h t i m e , a t e r m i n a t i o n f e e e q u a l t o t h e
C o m m i t m e n t F e e f o r t h e C o m m i t m e n t P e r i o d , l e s s a n y C o m m i t m e n t F e e s p a i d d u r i n g s u c h
p e r i o d p u r s u a n t t o S e c t i o n 2 . 7 ( a ) h e r e o f ( t h e " T e r m i n a t i o n F e e " ) . N o t w i t h s t a n d i n g t h e
f o r e g o i n g p r o v i s i o n s o f t h i s S e c t i o n 2 . 7 ( d ) , n o T e r m i n a t i o n F e e w i l l b e r e q u i r e d t o b e p a i d b y t h e
C o m m i s s i o n i f ( i ) t h e 2 0 0 9 S e r i e s A - 1 B o n d s a r e t h e n r a t e d b y M o o d y ' s , M o o d y ' s s h a l l h a v e
l o w e r e d o r w i t h d r a w n t h e s h o r t - t e r m r a t i n g o n t h e 2 0 0 9 S e r i e s A - 1 B o n d s b e l o w " P - 1 , " a s a
r e s u l t o f t h e r e d u c t i o n b y M o o d y ' s o f t h e s e n i o r , u n s e c u r e d s h o r t - t e r m r a t i n g o f t h e B a n k ; o r ( i i )
t h e 2 0 0 9 S e r i e s A - 1 B o n d s a r e t h e n r a t e d b y S t a n d a r d & P o o r ' s , S t a n d a r d & P o o r ' s s h a l l h a v e
l o w e r e d o r w i t h d r a w n t h e s h o r t - t e r m r a t i n g o n t h e 2 0 0 9 S e r i e s A - 1 B o n d s b e l o w " A - 1 , " a s a
r e s u l t o f t h e r e d u c t i o n b y S t a n d a r d P o o r ' s o f t h e s e n i o r , u n s e c u r e d s h o r t - t e r m r a t i n g o f t h e B a n k ;
o r ( i i i ) t h e 2 0 0 9 S e r i e s A - 1 B o n d s a r e t h e n r a t e d b y F i t c h , F i t c h s h a l l h a v e l o w e r e d o r w i t h d r a w n
t h e s h o r t - t e r m r a t i n g o n t h e 2 0 0 9 S e r i e s A - 1 B o n d s b e l o w " F - 1 , " a s a r e s u l t o f t h e r e d u c t i o n b y
F i t c h o f t h e s e n i o r , u n s e c u r e d s h o r t - t e r m r a t i n g o f t h e B a n k ; p r o v i d e d , h o w e v e r , a l l O b l i g a t i o n s
i n c l u d i n g , w i t h o u t l i m i t a t i o n , a l l p r i n c i p a l a n d i n t e r e s t e v i d e n c e d b y B a n k B o n d s a n d a l l a m o u n t s
p a y a b l e u n d e r A r t i c l e I I I h e r e o f , s h a l l b e p a i d t o t h e B a n k a t o r p r i o r t o t h e t i m e o f t e r m i n a t i o n .
I n a d d i t i o n , t h e C o m m i s s i o n s h a l l c o m p l y w i t h t h e r e q u i r e m e n t s o f t h e I n d e n t u r e w i t h r e s p e c t t o
t e r m i n a t i n g t h i s A g r e e m e n t .
( e )
n o n - r e f u n d a b l e .
F i n a l P a y m e n t . A l l a m o u n t s p a y a b l e p u r s u a n t t o t h i s S e c t i o n 2 . 7 s h a l l b e
S e c t i o n 2 . 8 . N e t o f T a x e s , E t c .
( a ) T a x e s . A n y a n d a l l p a y m e n t t o t h e B a n k b y t h e C o m m i s s i o n h e r e u n d e r
s h a l l b e m a d e f r e e a n d c l e a r o f a n d w i t h o u t d e d u c t i o n f o r a n y a n d a l l t a x e s , l e v i e s , i m p o s t s ,
d e d u c t i o n s , c h a r g e s , w i t h h o l d i n g s o r l i a b i l i t i e s i m p o s e d a s a r e s u l t o f a C h a n g e o f L a w ,
e x c l u d i n g , h o w e v e r , t a x e s i m p o s e d o n o r m e a s u r e d b y t h e n e t i n c o m e o r c a p i t a l o f t h e B a n k b y
a n y j u r i s d i c t i o n o r a n y p o l i t i c a l s u b d i v i s i o n o r t a x i n g a u t h o r i t y t h e r e o f o r t h e r e i n s o l e l y a s a
r e s u l t o f a c o n n e c t i o n b e t w e e n t h e B a n k a n d s u c h j u r i s d i c t i o n o r p o l i t i c a l s u b d i v i s i o n ( a l l s u c h
n o n - e x c l u d e d t a x e s , l e v i e s , i m p o s t s , d e d u c t i o n s , c h a r g e s , w i t h h o l d i n g s a n d l i a b i l i t i e s b e i n g
r e f e r r e d t o b e l o w a s " T a x e s " ) . I f a s a r e s u l t o f a C h a n g e o f L a w , t h e C o m m i s s i o n s h a l l b e
r e q u i r e d b y l a w t o w i t h h o l d o r d e d u c t a n y T a x e s i m p o s e d b y t h e U n i t e d S t a t e s o r a n y p o l i t i c a l
s u b d i v i s i o n t h e r e o f f r o m o r i n r e s p e c t o f a n y s u m p a y a b l e h e r e u n d e r t o t h e B a n k , ( i ) t h e s u m
p a y a b l e s h a l l b e i n c r e a s e d a s m a y b e n e c e s s a r y s o t h a t a f t e r m a k i n g a l l r e q u i r e d d e d u c t i o n s
( i n c l u d i n g , d e d u c t i o n s a p p l i c a b l e t o a d d i t i o n a l s u m s p a y a b l e u n d e r t h i s S e c t i o n 2 . 8 ) , t h e B a n k
1 2 6 2 9 5 7 9 . 4
- 1 7 -
1 9 0
receives an amount equal to the sum it would have received had no such deductions been made,
(ii) the Commission shall make such deductions, and (iii) the Commission shall pay the full
amount deducted to the relevant taxation authority or other authority in accordance with
applicable law. If the Commission shall make any payment under this Section 2.8 to or for the
benefit of the Bank with respect to Taxes and if the Bank shall claim any credit or deduction for
such Taxes against any other taxes payable by the Bank to any taxing jurisdiction in the United
States, then the Bank shall pay to the Commission an amount equal to the amount by which such
other taxes are actually reduced; provided that the aggregate amount payable by the Bank
pursuant to this sentence shall not exceed the aggregate amount previously paid by the
Commission with respect to such Taxes. In addition, the Commission, agrees to pay any present
or future stamp, recording or documentary taxes and, if as a result of a Change of Law, any other
excise or property taxes, charges or similar levies that arise under the laws of the United States of
America or the State of New York from any payment made hereunder or from the execution or
delivery or otherwise with respect to this Agreement (referred to below as "Other Taxes"). The
Bank shall provide to the Commission within a reasonable time a copy of any written
notification it receives with respect to Other Taxes owing by the Commission to the Bank
hereunder; provided that the Bank's failure to send such notice shall not relieve the Commission
of its obligation to pay such amounts hereunder.
(b) Notice. Within thirty (30) days after the date of any payment of Taxes by
the Commission, the Commission shall furnish to the Bank, the original or a certified copy of a
receipt evidencing payment thereof. To the extent permitted by law, the Commission shall
compensate the Bank for all reasonable losses and expenses sustained by the Bank as a result of
any failure by the Commission to so furnish such copy of such receipt.
(c) Survival of Obligations. The obligations of the Commission under this
Section 2.8 shall survive the termination of this Agreement.
Section 2.9. Increased Costs.
(a) Costs. In the event that after the date of the execution hereof the
application, enactment or adoption of, or any change in, any law, rule, regulation, treaty,
guideline or directive, or the occurrence of the effective date of any law, rule, regulation, treaty,
guideline or directive, or any provision thereof enacted or adopted on the date of the execution
hereof but which has not yet become effective, or the application, interpretation or enforcement
of any of the foregoing by any court, central bank, administrative or other Governmental
Authority having jurisdiction over the Bank or a Participant or the transactions contemplated by
this Agreement (whether or not having the force of law) shall either:
(i} limit the deductibility of interest on funds obtained by the Bank to
pay any of its liabilities or subject the Bank to any tax, duty, charge, deduction or
withholding on or with respect to payments relating to the 2009 Series A-1 Bonds or any
Banking Arrangements, or any amount paid or to be paid by the Bank hereunder (other
than any tax measured by or based upon the overall net income of the Bank imposed by
any jurisdiction having control over the Bank);
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( i i ) i m p o s e , m o d i f y , r e q u i r e , m a k e o r d e e m a p p l i c a b l e t o t h e B a n k a n y
r e s e r v e r e q u i r e m e n t , c a p i t a l r e q u i r e m e n t , s p e c i a l d e p o s i t r e q u i r e m e n t , i n s u r a n c e
a s s e s s m e n t o r s i m i l a r r e q u i r e m e n t a g a i n s t a n y a s s e t s h e l d b y , d e p o s i t s w i t h o r f o r t h e
a c c o u n t o f , o r l o a n s o r c o m m i t m e n t s b y , a d o m e s t i c o f f i c e o f t h e B a n k ;
( i i i ) c h a n g e t h e b a s i s o f t a x a t i o n o f p a y m e n t s d u e t h e B a n k u n d e r t h i s
A g r e e m e n t , t h e 2 0 0 9 S e r i e s A - 1 B o n d s o r a n y B a n k i n g A r r a n g e m e n t s ( o t h e r t h a n b y a
c h a n g e i n t a x a t i o n o f t h e o v e r a l l n e t i n c o m e o f t h e B a n k ) ; o r
( i v ) i m p o s e u p o n t h e B a n k a n y o t h e r c o n d i t i o n w i t h r e s p e c t t o a n y
a m o u n t p a i d o r p a y a b l e t o o r b y t h e B a n k o r w i t h r e s p e c t t o t h i s A g r e e m e n t , t h e 2 0 0 9
S e r i e s A - 1 B o n d s o r a n y B a n k i n g A r r a n g e m e n t s ;
a n d t h e r e s u l t o f a n y o f t h e f o r e g o i n g s h a l l b e t o i n c r e a s e t h e c o s t t o t h e B a n k o f e x t e n d i n g ,
i s s u i n g o r m a i n t a i n i n g a n y o f t h e B a n k i n g A r r a n g e m e n t s o r t o r e d u c e a n y a m o u n t ( o r t h e
e f f e c t i v e r e t u r n o n a n y a m o u n t ) r e c e i v e d o r r e c e i v a b l e b y t h e B a n k i n c o n n e c t i o n w i t h t h e
B a n k i n g A r r a n g e m e n t s ( w h i c h i n c r e a s e i n c o s t o r r e d u c t i o n i n y i e l d s h a l l b e t h e r e s u l t o f t h e
B a n k ' s r e a s o n a b l e a l l o c a t i o n , i n a n o n d i s c r i m i n a t o r y m a n n e r a m o n g b o r r o w e r s h a v i n g
o b l i g a t i o n s t o t h e B a n k s i m i l a r t o t h o s e o f t h e C o m m i s s i o n , o f t h e a g g r e g a t e o f s u c h c o s t
i n c r e a s e s o r y i e l d r e d u c t i o n s r e s u l t i n g f r o m s u c h e v e n t ) , t h e n , w i t h i n f o r t y - f i v e ( 4 5 ) d a y s o f
w r i t t e n d e m a n d b y t h e B a n k , t h e C o m m i s s i o n s h a l l p a y t o t h e B a n k , f r o m t i m e t o t i m e a s
s p e c i f i e d b y t h e B a n k , a d d i t i o n a l a m o u n t s w h i c h s h a l l b e s u f f i c i e n t t o c o m p e n s a t e t h e B a n k f o r
a l l s u c h i n c r e a s e d c o s t s o r r e d u c t i o n s i n y i e l d . N o t w i t h s t a n d i n g t h e f o r e g o i n g , n o P a r t i c i p a n t
s h a l l b e e n t i t l e d t o a n y s u c h a d d i t i o n a l a m o u n t f r o m t h e C o m m i s s i o n i n e x c e s s o f t h a t t o w h i c h
t h e B a n k w o u l d h a v e b e e n e n t i t l e d h a d t h e B a n k n o t g r a n t e d s u c h P a r t i c i p a n t a p a r t i c i p a t i o n i n
t h i s A g r e e m e n t . T h e B a n k s h a l l s u b m i t t o t h e C o m m i s s i o n , a t o r p r i o r t o t h e m a k i n g o f e a c h
s u c h d e m a n d , a c e r t i f i c a t e s e t t i n g f o r t h i n r e a s o n a b l e d e t a i l s u c h i n c r e a s e d c o s t s o r y i e l d
r e d u c t i o n i n c u r r e d b y t h e B a n k o r s u c h P a r t i c i p a n t a s a r e s u l t o f a n y o f t h e f o r e g o i n g .
( b ) C a p i t a l A d e q u a c y . I f t h e B a n k s h a l l h a v e d e t e r m i n e d t h a t t h e a d o p t i o n
a f t e r t h e d a t e h e r e o f o f a n y a p p l i c a b l e l a w , r u l e , r e g u l a t i o n o r g u i d e l i n e a d o p t e d p u r s u a n t t o o r
a r i s i n g o u t o f t h e A u g u s t 1 9 8 8 r e p o r t o f t h e B a s l e C o m m i t t e e o n B a n k i n g R e g u l a t i o n s a n d
S u p e r v i s o r y P r a c t i c e s e n t i t l e d " I n t e r n a t i o n a l C o n v e r g e n c e o f C a p i t a l M e a s u r e m e n t a n d C a p i t a l
S t a n d a r d s , " o r t h e a d o p t i o n o f a n y o t h e r l a w , r u l e , r e g u l a t i o n o r g u i d e l i n e ( w h e t h e r o r n o t h a v i n g
t h e f o r c e o f l a w ) r e g a r d i n g c a p i t a l a d e q u a c y b y a n y G o v e r n m e n t a l A u t h o r i t y h a v i n g r e g u l a t o r y
j u r i s d i c t i o n o v e r t h e B a n k , o r a n y c h a n g e i n a p p l i c a b l e l a w , r u l e , r e g u l a t i o n o r g u i d e l i n e , a s t h e
c a s e m a y b e , o r a n y c h a n g e i n t h e e n f o r c e m e n t o r i n t e r p r e t a t i o n o r a d m i n i s t r a t i o n t h e r e o f b y a n y
G o v e r n m e n t a l A u t h o r i t y c h a r g e d w i t h t h e i n t e r p r e t a t i o n o r a d m i n i s t r a t i o n t h e r e o f , o r c o m p l i a n c e
b y t h e B a n k ( o r a n y l e n d i n g o f f i c e t h e r e o f ) w i t h a n y r e q u e s t o r d i r e c t i v e r e g a r d i n g c a p i t a l
a d e q u a c y ( w h e t h e r o r n o t h a v i n g t h e f o r c e o f l a w ) o f a n y s u c h G o v e r n m e n t a l A u t h o r i t y , h a s o r
w o u l d h a v e t h e e f f e c t o f r e d u c i n g t h e r a t e o f r e t u r n o n c a p i t a l o f t h e B a n k a s a c o n s e q u e n c e o f i t s
o b l i g a t i o n s h e r e u n d e r o r i t s p u r c h a s e o r h o l d i n g o f B a n k B o n d s t o a l e v e l b e l o w t h a t w h i c h t h e
B a n k c o u l d h a v e a c h i e v e d b u t f o r s u c h a d o p t i o n , c h a n g e o r c o m p l i a n c e ( t a k i n g i n t o
c o n s i d e r a t i o n t h e p o l i c i e s o f t h e B a n k w i t h r e s p e c t t o c a p i t a l a d e q u a c y ) b y a n a m o u n t d e e m e d b y
t h e B a n k t o b e m a t e r i a l , t h e n w i t h i n t h i r t y ( 3 0 ) d a y s a f t e r d e m a n d b y t h e B a n k , t h e C o m m i s s i o n
s h a l l p a y t o t h e B a n k f r o m t i m e t o t i m e , a s s p e c i f i e d b y t h e B a n k , s u c h a d d i t i o n a l a m o u n t o r
a m o u n t s a s w i l l c o m p e n s a t e t h e B a n k f o r s u c h r e d u c t i o n f r o m t h e d a t e o f s u c h a d o p t i o n , c h a n g e
1 2 6 2 9 5 7 9 . 4
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or compliance with respect to such law, rule, regulation, guideline, request or directive, together
with interest on each such amount from the date payment is due until the earlier of the date of
payment in full thereof or the thirtieth (30a') day after which such payment is due, at the Bank
Rate and, thereafter, at the Default Rate.
(c) Payment. Each demand for compensation pursuant to Section 2.9(a) or
2.9(b) shall be accompanied by a certificate of the Bank in reasonable detail setting forth the
computation of such compensation (including the reason therefor), which certificate shall be
conclusive, absent manifest error, as against all other Persons, including, without limitation, the
Commission and any Participant. The amounts owed by the Commission as compensation to the
Bank pursuant to this Section 2.9 shall be calculated as though the Bank were the holder of all
Bank Bonds and without regard to any sales of Bank Bonds by the Bank pursuant to Section 2.5
or to any assignments or participations made by the Bank with regard to its obligations or rights
hereunder or with regard to Bank Bonds.
(d) Continuing Costs. If such costs are to be incurred on a continuing basis
and the Commission shall be so notified by the Bank in writing as to the amount thereof, then
such costs shall be payable by the Commission to the Bank on each Interest Payment Date to the
extent therefore incurred.
(e) Survival of Obligations. The obligations of the Commission under this
Section 2.9 shall survive the termination of this Agreement and the payment in full of the Bank
Bonds and the other Obligations of the Commission hereunder.
Section 2.10. Computations; Payments.
(a) Computations. Interest, fees and other amounts payable to the Bank
hereunder shall be computed on the basis of a 365-day year and actual days elapsed; provided,
however, that interest calculated with respect to any Bank Bonds shall be on the basis applicable
to the interest rate mode then in effect with respect to such 2009 Series A-1 Bonds as determined
pursuant to Section 21.05 of the Second Supplemental Indenture; provided further, that the
Commitment Fee shall be computed on the basis of a 360-day year and actual days elapsed. Any
payments received by the Bank later than 4:00 p.m., New York City time, on any day shall be
deemed to have been paid on the next succeeding Business Day. If any payment due hereunder
is due on a day that is not a Business Day, then such amount shall be due on the next succeeding
Business Day and, in the case of the computation of any fees described in Section 2.7 hereof,
such extension of time shall in such case be included in the computation of the payment due
hereunder. All payments to the Bank hereunder shall be made in U.S. Dollars and in
immediately available funds. Unless the Bank shall otherwise direct, all such payments shall be
made by means of wire transfer of funds through the Federal Reserve Wire System to the Bank's
account c/o JPMorgan Chase Bank, N.A., Attention: [Account Manager, ABA No.: [ 1,
Account No.: [ 1, Account Name: Riverside County Transportation Commission
Series 2009 Series A-1 Bonds].
(b) Transfer Costs. The Commission agrees to pay to the Bank on each
Purchase Date or Sale Date, as applicable, an amount equal to any charge imposed on the Bank
pursuant to the Indenture in connection with the transfer or exchange of the 2009 Series A-1
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B o n d s . T h e C o m m i s s i o n a g r e e s t o c a u s e t h e T r u s t e e t o g i v e t h e B a n k t i m e l y n o t i c e o f e a c h s u c h
c h a r g e , i n c l u d i n g t h e a m o u n t t h e r e o f .
( c ) A p p l i c a t i o n o f P a y m e n t s . P a y m e n t s m a d e t o t h e B a n k u n d e r t h i s
A g r e e m e n t s h a l l f i r s t b e a p p l i e d t o a n y f e e s , c o s t s , c h a r g e s o r e x p e n s e s p a y a b l e t o t h e B a n k
h e r e u n d e r , n e x t t o a n y p a s t d u e i n t e r e s t , n e x t t o a n y c u r r e n t i n t e r e s t d u e , a n d t h e n t o o u t s t a n d i n g
p r i n c i p a l .
( d ) S u r v i v a l o f O b l i g a t i o n . T h e o b l i g a t i o n s o f t h e C o m m i s s i o n u n d e r t h i s
S e c t i o n 2 . 1 0 s h a l l s u r v i v e t h e t e r m i n a t i o n o f t h i s A g r e e m e n t .
S e c t i o n 2 . 1 1 . N a t u r e o f O b l i g a t i o n s .
( a ) T h e i n t e r e s t d u e o n B a n k B o n d s ( i n c l u d i n g a n y D i f f e r e n t i a l I n t e r e s t
A m o u n t a n d E x c e s s B a n k B o n d I n t e r e s t t h a t i s n o t a f e e a s d e s c r i b e d i n S e c t i o n 2 . 2 ) s h a l l b e
p a y a b l e f r o m , a n d s e c u r e d b y , t h e S a l e s T a x R e v e n u e s , o n a p a r i t y w i t h t h e p a y m e n t o f i n t e r e s t
o n t h e 2 0 0 9 S e r i e s A - 1 B o n d s a n d t h e p a y m e n t o f i n t e r e s t o n a l l o t h e r P a r i t y O b l i g a t i o n s , a n d
a n y u n p a i d E x c e s s B a n k B o n d I n t e r e s t t h a t i s a f e e a s d e s c r i b e d i n S e c t i o n 2 . 2 h e r e o f s h a l l b e a n
o b l i g a t i o n o f t h e C o m m i s s i o n u n d e r t h e A g r e e m e n t , p a y a b l e f r o m R e v e n u e s , b u t s u b o r d i n a t e t o
p a y m e n t o f p r i n c i p a l a n d i n t e r e s t o n t h e 2 0 0 9 S e r i e s A - 1 B o n d s ( i n c l u d i n g B a n k B o n d s ) a n d a n y
a m o u n t p a y a b l e o n a p a r i t y t h e r e w i t h .
( b ) T h e m a t u r i n g p r i n c i p a l a n d s i n k i n g f u n d r e q u i r e m e n t s d u e a n d p a y a b l e i n
c o n n e c t i o n w i t h B a n k B o n d s s h a l l b e p a y a b l e f r o m , a n d s e c u r e d b y , t h e S a l e s T a x R e v e n u e s , o n
a p a r i t y w i t h t h e p a y m e n t o f m a t u r i n g p r i n c i p a l a n d s i n k i n g f u n d r e q u i r e m e n t s d u e o n t h e 2 0 0 9
S e r i e s A - 1 B o n d s a n d a l l o t h e r P a r i t y O b l i g a t i o n s .
( c ) T h e o b l i g a t i o n o f t h e C o m m i s s i o n t o p a y t h e C o m m i t m e n t F e e a n d a l l
o t h e r a m o u n t s s e t f o r t h h e r e i n a s f e e s ( i n c l u d i n g , b u t n o t l i m i t e d t o , t h e a m o u n t s d e s c r i b e d i n
S e c t i o n s 2 . 7 , 2 . 8 , 2 . 9 a n d 1 0 . 3 h e r e o f ) s h a l l b e p a y a b l e f r o m t h e F e e a n d E x p e n s e s F u n d o f t h e
R e v e n u e F u n d , p u r s u a n t t o S e c t i o n 5 . 0 2 ( A ) ( 5 ) o f t h e I n d e n t u r e , i f a n d t o t h e e x t e n t t h a t s u c h
a m o u n t s a r e n o t p a i d b y t h e C o m m i s s i o n f r o m o t h e r m o n e y s .
( d ) N o t w i t h s t a n d i n g a n y o t h e r p r o v i s i o n o f t h i s A g r e e m e n t t o t h e c o n t r a r y , a l l
o b l i g a t i o n s o f t h e C o m m i s s i o n t o t h e B a n k h e r e u n d e r a r e s p e c i a l , l i m i t e d o b l i g a t i o n s o f t h e
C o m m i s s i o n p a y a b l e s o l e l y f r o m t h e S a l e s T a x R e v e n u e s a n d o t h e r f u n d s a v a i l a b l e f o r s u c h
p u r p o s e s u n d e r t h e I n d e n t u r e .
A R T I C L E I I I
B A N K B O N D S
S e c t i o n 3 . 1 . M a t u r i t y ; I n t e r e s t .
( a ) B a n k B o n d s . N o t w i t h s t a n d i n g a n y t h i n g t o t h e c o n t r a r y c o n t a i n e d i n s u c h
2 0 0 9 S e r i e s A - 1 B o n d , t h e C o m m i s s i o n a g r e e s t h a t , e a c h p u r c h a s e o f a n E l i g i b l e B o n d b y t h e
B a n k p u r s u a n t t o S e c t i o n 2 . 3 h e r e o f s h a l l r e s u l t i n t h e c r e a t i o n o f a B a n k B o n d . I n t e r e s t o n a n y
1 2 6 2 9 5 7 9 . 4
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Bank Bond will be due and payable on the first Business Day of each month and each Bank
Bond, and the accrued interest thereon, shall be repaid by or on behalf of the Commission on the
earliest to occur of (A) if the conditions described in Section 6.2 are not satisfied on the related
Purchase Date, the second Business Day immediately following the Purchase Date on which
such Bank Bond was purchased pursuant to Section 2.3 hereof; and (B) if the conditions
described in Section 6.2 have been satisfied on the related Purchase Date, (i) the date on which
such Bank Bond is redeemed, defeased, accelerated or otherwise paid in accordance with its
terms, (ii) the date of the remarketing of such Bank Bond, (iii) the date on which such Bank
Bond matures in accordance with its terms, (iv) the Substitution Date, (v) the Conversion Date
and (vi) the final day of the Bank Bond Amortization Period (any one of the foregoing payment
dates constituting a "Payment Due Date"). The Bank shall be under no obligation to purchase
any Eligible Bond pursuant to Section 2.3 hereof unless the conditions set forth in Section 6.1
hereof have been satisfied. The Commission may prepay any Bank Bond as provided in Section
3.1(c) below. The Bank shall use its best efforts to notify the Commission and the Trustee of the
amount of accrued interest on each Bank Bond on the Business Day prior to the date on which
such amount is due.
(b) Redemption of Bank Bonds. Subject to the prepayment of any Bank Bond
as provided in Section 3.1(a) and Section 3.1(c) hereof, each Bank Bond, and the accrued interest
thereon, shall be subject to redemption from the sources described in Section 2.11 hereof in six
(6) equal semi-annual installments, the first of which will occur on the first day of the related
Bank Bond Amortization Period, with each subsequent installment being payable, together with
interest accrued thereon, one hundred eighty (180) days thereafter, and with the final installment
being due and payable no later than the final day of the Bank Bond Amortization Period. The
Bank shall use its best efforts to notify the Commission and the Trustee of the amount of accrued
interest on each Bank Bond on the Business Day prior to the date on which such amount is due.
(c) Prepayment of Bank Bonds. Any Bank Bond may be prepaid by the
Commission, without premium or penalty, upon one (1) Business Day's prior written, electronic
or telephonic notice to the Bank (which notice, if electronic or telephonic, shall be promptly
confirmed in writing), in whole or in part but, if in part, in a minimum aggregate principal
amount of $100,000 and integral multiples of $5,000 in excess thereof. Any prepayment of
principal by the Commission of a Bank Bond (including any prepayment pursuant to the sinking
fund requirements associated with the related Bank Bond) shall be credited against the next
succeeding payment due on the Bank Bond.
(d) CUSIPs and Ratings for Bank Bonds. On or prior to the Effective Date,
the Commission will provide, or cause to be provided, at its expense, (i) a CUSIP number
different from any CUSIP number assigned to the Bonds that are not Bank Bonds and (ii) a long-
term rating from Moody's, Standard & Poor's or Fitch, specifically assigned to such Bank
Bonds. Furthermore, the Commission will ensure (at its expense) that, for so long as there
remain any Bank Bonds Outstanding, the CUSIP number and the long-term rating assigned to
such Bank Bonds are available on the Bloomberg Municipal Bond Description Screen (or are
otherwise available electronically to the Bank pursuant to a third -party provider of such
information).
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A R T I C L E I V
C O N D I T I O N S P R E C E D E N T T O E F F E C T I V E N E S S
T h i s A g r e e m e n t s h a l l b e c o m e e f f e c t i v e a s o f [ ] , 2 0 0 9 ( t h e " E f f e c t i v e D a t e " )
p r o v i d e d t h a t e a c h o f t h e f o l l o w i n g c o n d i t i o n s h a v e b e e n f u l f i l l e d t o t h e s a t i s f a c t i o n o f t h e B a n k :
( a ) O n t h e E f f e c t i v e D a t e , t h e B a n k s h a l l h a v e r e c e i v e d e x e c u t e d c o p i e s o f
e a c h o f t h e f o l l o w i n g d o c u m e n t s , w h i c h d o c u m e n t s s h a l l b e i n f u l l f o r c e a n d e f f e c t o n t h e
E f f e c t i v e D a t e a n d i n f o r m a n d s u b s t a n c e s a t i s f a c t o r y t o t h e B a n k :
( i ) t h e I n d e n t u r e , i n c l u d i n g t h e S e c o n d S u p p l e m e n t a l I n d e n t u r e ;
( i i ) t h e O f f i c i a l S t a t e m e n t ;
( i i i ) t h e R e m a r k e t i n g A g r e e m e n t ;
( i v ) t h e B o n d P u r c h a s e A g r e e m e n t ;
( v ) t h e O t h e r L i q u i d i t y F a c i l i t i e s ;
( v i ) t h i s A g r e e m e n t ; a n d
( v i i ) t h e f o r m o f t h e 2 0 0 9 S e r i e s A - 1 B o n d s , w h i c h m a y b e m a r k e d a s a
" s p e c i m e n " o r o t h e r w i s e m a r k e d a s " v o i d " .
( b ) T h e r e s h a l l h a v e b e e n d e l i v e r e d t o t h e B a n k s u c h i n f o r m a t i o n a n d c o p i e s
o f d o c u m e n t s , a p p r o v a l s ( i f a n y ) a n d r e c o r d s ( c e r t i f i e d , w h e r e a p p r o p r i a t e ) o f c o r p o r a t e a n d l e g a l
p r o c e e d i n g s a s t h e B a n k m a y h a v e r e q u e s t e d r e l a t i n g t o t h e e n t e r i n g i n t o a n d p e r f o r m a n c e b y
e a c h o f t h e p a r t i e s ( o t h e r t h a n t h e B a n k ) t h e r e t o , o f e a c h o f t h e R e l a t e d D o c u m e n t s , t h e B o n d
P u r c h a s e A g r e e m e n t a n d t h e O f f i c i a l S t a t e m e n t a n d t h e t r a n s a c t i o n s c o n t e m p l a t e d t h e r e b y , a n d
t h e t a x e x e m p t s t a t u s o f t h e B o n d s . .
( c ) T h e a p p r o v i n g o p i n i o n o f b o n d c o u n s e l , t o g e t h e r w i t h a r e l i a n c e l e t t e r
a d d r e s s e d t o t h e B a n k w i t h r e s p e c t t h e r e t o , a n d t h e o p i n i o n o f c o u n s e l t o t h e C o m m i s s i o n
r e g a r d i n g t h e e n f o r c e a b i l i t y o f t h i s A g r e e m e n t a n d r e l a t e d m a t t e r s , i n e a c h c a s e , i n f o r m
s a t i s f a c t o r y t o t h e B a n k a n d d a t e d t h e E f f e c t i v e D a t e .
( d ) T h e r e s h a l l h a v e b e e n d e l i v e r e d t o t h e B a n k s u c h i n f o r m a t i o n a n d c o p i e s
o f d o c u m e n t s , a p p r o v a l s ( i f a n y ) a n d r e c o r d s c e r t i f i e d , w h e r e a p p r o p r i a t e , o f c o r p o r a t e a n d l e g a l
p r o c e e d i n g s a s t h e B a n k m a y h a v e r e q u e s t e d r e l a t i n g t o t h e C o m m i s s i o n e n t e r i n g i n t o ,
p e r f o r m i n g , a c c e p t i n g a n d / o r a g r e e i n g t o t h i s A g r e e m e n t a n d t h e o t h e r R e l a t e d D o c u m e n t s , a n d
t h e t r a n s a c t i o n s c o n t e m p l a t e d h e r e b y a n d t h e r e b y . S u c h d o c u m e n t s s h a l l , i n a n y e v e n t , i n c l u d e :
( i ) a c e r t i f i c a t e o f t h e [ S e c r e t a r y ] o f t h e C o m m i s s i o n , a t t a c h i n g t h e
f o l l o w i n g a n d c e r t i f y i n g t h a t s u c h a r e i n f u l l f o r c e a n d e f f e c t o n t h e E f f e c t i v e D a t e :
1 2 6 2 9 5 7 9 . 4
- 2 3 -
1 9 6
(A) copies of (y) a resolution of the Commission approving this
Agreement and the other matters contemplated hereby and (z) all other documents
evidencing any other necessary corporate action;
(B) the bylaws of the Commission;
(C) a copy of the Commission's investment policy applicable to the
2009 Bonds;
(D) a copy of the Interest Rate Swap Agreement applicable to the 2009
Bonds; and
(ii) an incumbency certificate with respect to the officers or agents of
the Commission who are authorized to execute and deliver this Agreement.
(e) A certificate signed by an Authorized Representative, dated the Effective
Date, stating that: (i) the representations and warranties of the Commission contained in Article
V hereof, the Indenture and the other Related Documents to which it is a party are true and
correct on and as of the Effective Date as though made on and as of such date; (ii) no petition by
or against the Commission has at any time been filed under the United States Bankruptcy Code
or under any similar act; (iii) no Default or Event of Default hereunder has occurred and is
continuing, or would result, from the execution and performahce of this Agreement; (iv) the
Indenture and the other Related Documents have not been amended, supplemented or modified
in any way since their respective effective dates; (v) except as described in the Official Statement
or any other documents provided by the Commission to the Bank or except as approved by the
Bank prior to the Effective Date, no material adverse change shall have occurred in the condition
(financial or otherwise) or operations of the Commission between the date of the Commission's
most recent audited financial statements and the Effective Date, and no transactions or
obligations having a material adverse effect on the condition (financial or otherwise) or
operations of the Commission, whether or not arising from transactions in the ordinary course of
the Commission's business, shall have been entered into by the Commission subsequent to the
date of the Commission's most recent audited financial statements; and (vi) except as described
in the Official Statement or any other documents provided by the Commission to the Bank or
except as approved by the Bank prior to the Effective Date, no transaction or event shall have
occurred and no change shall have occurred in the condition (financial or otherwise) or
operations of the Commission between the date of the Commission's most recent audited
financial statements and the Effective Date which materially adversely affects the security for
any of the 2009 Series A-1 Bonds, or the Commission's ability to repay when due its obligations
under this Agreement, any of the 2009 Series A-1 Bonds and the Related Documents.
(f) A certificate signed by duly authorized officer or officers of the Trustee
stating that: (i) the officer or officers who executed and delivered the Indenture were authorized
under the Trustee's goveming documents to do so and the titles or offices of the officer or
officers who are authorized under the Trustee's governing documents to present Notices of Bank
Purchase hereunder, (ii) no Indenture Event of Default has occurred, nor has there occurred any
circumstance or event or any combination thereof which, with the lapse of time and/or the giving
of notice, would constitute an Indenture Event of Default, (iii) the execution and delivery of the
12629579.4
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"
I n d e n t u r e b y t h e T r u s t e e , a n d t h e p e r f o r m a n c e o f t h e T r u s t e e ' s o b l i g a t i o n s t h e r e u n d e r , d i d n o t , a t
a l l r e l e v a n t t i m e s , a n d w i l l n o t r e s u l t i n a d e f a u l t u n d e r a n y a g r e e m e n t o r i n s t r u m e n t t o w h i c h t h e
T r u s t e e i s a p a r t y , a n d ( i v ) s u c h o t h e r m a t t e r s a s t h e B a n k m a y r e a s o n a b l y r e q u e s t i n a f o r m
s a t i s f a c t o r y t o t h e B a n k a n d d a t e d t h e E f f e c t i v e D a t e .
( g ) P a y m e n t o f t h e B a n k ' s f e e s a n d e x p e n s e s ( i n c l u d i n g a t t o r n e y ' s f e e s a n d
e x p e n s e s d e s c r i b e d i n S e c t i o n 1 0 . 3 h e r e o f ) p a y a b l e o n t h e E f f e c t i v e D a t e .
( h ) E v i d e n c e s a t i s f a c t o r y t o t h e B a n k t h a t t h e 2 0 0 9 S e r i e s A - 2 B o n d s a n d t h e
2 0 0 9 S e r i e s A - 3 B o n d s a r e b e i n g e x e c u t e d a n d d e l i v e r e d c o n c u r r e n t l y w i t h t h e 2 0 0 9 S e r i e s A - 1
B o n d s a n d e v i d e n c e t h a t t h e p r o c e e d s o f t h e 2 0 0 9 B o n d s a r e t o b e d i s b u r s e d a s d e s c r i b e d i n t h e
O f f i c i a l S t a t e m e n t .
( i ) L e g a l o p i n i o n o f N i x o n P e a b o d y L L P , s p e c i a l c o u n s e l t o t h e B a n k ,
a d d r e s s e d t o t h e C o m m i s s i o n , t h e T r u s t e e a n d t h e R e m a r k e t i n g A g e n t , d a t e d t h e E f f e c t i v e D a t e ,
a n d a s t o s u c h m a t t e r s i n c i d e n t t o t h i s A g r e e m e n t a n d t h e t r a n s a c t i o n s c o n t e m p l a t e d h e r e b y a s
t h e B a n k s h a l l h a v e r e a s o n a b l y r e q u e s t e d .
( 1 ) E v i d e n c e s a t i s f a c t o r y t o t h e B a n k t h a t ( i ) a C U S I P n u m b e r h a s b e e n
o b t a i n e d a n d r e s e r v e d f o r a n y B a n k B o n d s a n d ( i i ) a l o n g - t e r m r a t i n g f r o m a n y o n e o f M o o d y ' s ,
S t a n d a r d & P o o r ' s o r F i t c h h a s b e e n a s s i g n e d t o t h e B a n k B o n d s .
( k ) T h e B a n k s h a l l h a v e r e c e i v e d s a t i s f a c t o r y e v i d e n c e t h a t t h e 2 0 0 9 B o n d s
h a v e l o n g - t e r m r a t i n g s o f a t l e a s t " [ ] " b y M o o d y ' s , " [ ] " b y S t a n d a r d & P o o r ' s a n d " [ ] "
b y F i t c h .
( 1 ) A n e x e c u t e d l e t t e r f r o m t h e T r u s t e e , i n f o r m a n d s u b s t a n c e r e a s o n a b l y
s a t i s f a c t o r y t o t h e B a n k , i n s u b s t a n t i a l l y t h e f o r m a t t a c h e d h e r e t o a s E x h i b i t D .
( m ) S u c h o t h e r d o c u m e n t s , i n s t r u m e n t s , a p p r o v a l s a n d , i f r e q u e s t e d b y t h e
B a n k , c e r t i f i e d d u p l i c a t e s o f e x e c u t e d o r i g i n a l s t h e r e o f , a n d o p i n i o n s a s t h e B a n k m a y
r e a s o n a b l y r e q u e s t .
I n a d d i t i o n , ( A ) t h e B a n k s h a l l h a v e d e t e r m i n e d , a s o f t h e E f f e c t i v e D a t e , t h a t n o l a w ,
r e g u l a t i o n , r u l i n g o r o t h e r a c t i o n o f t h e U n i t e d S t a t e s , t h e S t a t e o f N e w Y o r k o r t h e S t a t e o f
C a l i f o r n i a o r a n y p o l i t i c a l s u b d i v i s i o n o r o t h e r G o v e r n m e n t a l A u t h o r i t y t h e r e i n o r t h e r e o f s h a l l
b e i n e f f e c t o r s h a l l h a v e o c c u r r e d , t h e e f f e c t o f w h i c h w o u l d b e t o p r e v e n t t h e C o m m i s s i o n , t h e
T r u s t e e , t h e R e m a r k e t i n g A g e n t o r t h e B a n k f r o m f u l f i l l i n g t h e i r r e s p e c t i v e o b l i g a t i o n s u n d e r
t h i s A g r e e m e n t o r t h e o t h e r R e l a t e d D o c u m e n t s t o w h i c h s u c h e n t i t y i s a p a r t y a n d ( B ) n o
m a t e r i a l a d v e r s e c h a n g e i n t h e l a w s , r u l e s , g u i d e l i n e s , o r r e g u l a t i o n s ( o r t h e i r i n t e r p r e t a t i o n o r
a d m i n i s t r a t i o n ) c u r r e n t l y i n e f f e c t a n d a p p l i c a b l e t o t h e p a r t i e s h e r e t o , a n d t h e t r a n s a c t i o n s
c o n t e m p l a t e d h e r e b y , a s d e t e r m i n e d i n s o l e d i s c r e t i o n o f t h e B a n k , s h a l l h a v e o c c u r r e d .
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ARTICLE V
REPRESENTATIONS AND WARRANTIES
To induce the Bank to enter into this Agreement and to purchase 2009 Series A-1 Bonds
as provided herein, the Commission makes the following representations and warranties to, and
agreements with the Bank (which representations, warranties and agreements shall survive the
execution and delivery of this Agreement and any purchases of 2009 Series A-1 Bonds by the
Bank):
Section 5.1. Due Organization; Power and Authority.
The Commission is county transportation commission, duly organized and validly
existing under the laws of the State of Califomia. The Commission has all requisite power and
authority to adopt, execute, deliver and perform all of its obligations under the Related
Documents, the Bond Purchase Agreement and to incur the indebtedness evidenced by the 2009
Series A-1 Bonds, and to adopt, execute and deliver any and all instruments and documents
required to be adopted, executed or delivered pursuant to or in connection herewith or therewith
and to perform each and all of the matters and things provided for herein and therein.
Section 5.2. Due Authorization; No Violation.
The execution, delivery and performance by the Commission of the Agreement, the Bond
Purchase Agreement and the other Related Documents and any and all instruments or documents
required to be adopted or executed in connection herewith or therewith have been or will by the
Effective Date be duly authorized and do not and will not, in any material respect, (a) violate any
provision of any law, rule, regulation, order, writ, judgment, injunction, decree, determination or
award in effect having applicability to the Commission or (b) result in a breach of or constitute a
default under any indenture, loan, credit agreement or any other agreement, lease or instrument
to which the Commission is a party or by which the Commission is bound.
Section 5.3. Enforceability.
Each Related Document (other than the 2009 Series A-1 Bonds) and the Bond Purchase
Agreement to which the Commission is a party constitutes a legal, valid and binding obligation
of the Commission, enforceable against the Commission in accordance with its terms, except as
such enforceability may be limited by applicable reorganization, insolvency, liquidation,
readjustment of debt, moratorium or other similar laws affecting the enforcement of the rights of
creditors generally and by general principles of equity (regardless of whether such enforceability
is considered in a proceeding in equity or at law). The 2009 Series A-1 Bonds have been duly
issued, executed and delivered in conformity with the Act and the Indenture, and constitute legal,
valid and binding special obligations of the Commission, enforceable in accordance with their
terms, except as such enforceability may be limited by applicable reorganization, insolvency,
liquidation, readjustment of debt, moratorium or other similar laws affecting the enforcement of
the rights of creditors generally and by general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law), and entitled to the benefit and
security of the Indenture.
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"
S e c t i o n 5 . 4 . D i s c l o s u r e .
A l l f a c t u a l i n f o r m a t i o n p r o v i d e d t o t h e B a n k b y o r o n b e h a l f o f t h e C o m m i s s i o n i s , a n d
a l l o t h e r s u c h f a c t u a l i n f o r m a t i o n h e r e a f t e r p r o v i d e d w i l l b e , t o t h e k n o w l e d g e o f t h e
C o m m i s s i o n , a c c u r a t e i n a l l m a t e r i a l r e s p e c t s o n t h e d a t e a s o f w h i c h s u c h i n f o r m a t i o n i s
c e r t i f i e d . T h e O f f i c i a l S t a t e m e n t ( o t h e r t h a n t h e f i n a n c i a l s t a t e m e n t s i n c l u d e d t h e r e i n ) , t r u e
c o p i e s o f w h i c h h a v e h e r e t o f o r e b e e n d e l i v e r e d t o t h e B a n k , a n d e a c h a m e n d m e n t o r s u p p l e m e n t
t h e r e t o p r e p a r e d s u b s e q u e n t t o t h e E f f e c t i v e D a t e ( a t r u e c o p y o f w h i c h s h a l l b e f u m i s h e d t o t h e
B a n k ) , d o n o t a n d w i l l n o t a s o f t h e d a t e t h e r e o f c o n t a i n a n y u n t r u e s t a t e m e n t o f a m a t e r i a l f a c t
a n d d o n o t a n d w i l l n o t a s o f t h e d a t e t h e r e o f o m i t t o s t a t e a m a t e r i a l f a c t n e c e s s a r y t o m a k e t h e
s t a t e m e n t s t h e r e i n , i n t h e l i g h t o f t h e c i r c u m s t a n c e s u n d e r w h i c h m a d e , n o t m i s l e a d i n g , e x c e p t n o
r e p r e s e n t a t i o n i s m a d e a s t o a n y i n f o r m a t i o n f u r n i s h e d b y D T C o r t h e B a n k e x p r e s s l y f o r
i n c l u s i o n t h e r e i n o r a s t o a n y i n f o r m a t i o n c o n c e r n i n g D T C o r t h e b o o k - e n t r y s y s t e m .
S e c t i o n 5 . 5 . N o L i t i g a t i o n .
T h e r e i s n o a c t i o n , s u i t , p r o c e e d i n g , i n q u i r y o r i n v e s t i g a t i o n a t l a w o r i n e q u i t y b e f o r e o r
b y a n y c o u r t , a r b i t r a t o r , g o v e r n m e n t a l o r o t h e r b o a r d , b o d y o r o f f i c i a l , p e n d i n g w i t h s e r v i c e o f
p r o c e s s a c c o m p l i s h e d o r , t o t h e b e s t k n o w l e d g e o f t h e C o m m i s s i o n a f t e r d u e i n q u i r y , t h r e a t e n e d
a g a i n s t o r a f f e c t i n g t h e C o m m i s s i o n , w h i c h i n a n y m a n n e r d r a w s i n t o q u e s t i o n t h e v a l i d i t y o r
e n f o r c e a b i l i t y o f a n y o f t h e R e l a t e d D o c u m e n t s a n d t h e B o n d P u r c h a s e A g r e e m e n t o r i n a n y w a y
c o n t e s t s t h e e x i s t e n c e , o r g a n i z a t i o n o r p o w e r s o f t h e C o m m i s s i o n o r a n y e l e c t e d o f f i c i a l t h e r e o f
t o a d o p t , e x e c u t e a n d d e l i v e r a n y o f t h e R e l a t e d D o c u m e n t s a n d t h e B o n d P u r c h a s e A g r e e m e n t ,
t o i s s u e t h e 2 0 0 9 S e r i e s A - 1 B o n d s o r t o p e r f o r m t h e o b l i g a t i o n s t h e r e u n d e r o r c o n t e m p l a t e d
t h e r e b y o r w h i c h , i f d e t e r m i n e d a d v e r s e l y t o t h e C o m m i s s i o n , w o u l d h a v e a m a t e r i a l a d v e r s e
e f f e c t o n t h e S a l e s T a x R e v e n u e s o r t h e a b i l i t y o f t h e C o m m i s s i o n t o p e r f o r m i t s o b l i g a t i o n s
u n d e r a n y o f t h e R e l a t e d D o c u m e n t s .
S e c t i o n 5 . 6 . C o n s e n t s .
N o a u t h o r i z a t i o n , c o n s e n t , a p p r o v a l , l i c e n s e , e x e m p t i o n f r o m o r r e g i s t r a t i o n w i t h a n y
c o u r t o r g o v e r n m e n t a l d e p a r t m e n t , c o m m i s s i o n , b o a r d , b u r e a u , a g e n c y o r i n s t r u m e n t a l i t y ,
d o m e s t i c o r f o r e i g n , o t h e r t h a n t h o s e w h i c h h a v e b e e n o r w i l l b y t h e E f f e c t i v e D a t e b e o b t a i n e d ,
w i l l b e n e c e s s a r y f o r t h e v a l i d a d o p t i o n , e x e c u t i o n , d e l i v e r y a n d p e r f o r m a n c e b y t h e C o m m i s s i o n
o f a n y o f t h e R e l a t e d D o c u m e n t s a n d t h e B o n d P u r c h a s e A g r e e m e n t ; p r o v i d e d t h a t n o
r e p r e s e n t a t i o n i s m a d e a s t o a n y " b l u e s k y " o r s e c u r i t i e s l a w s o f a n y j u r i s d i c t i o n .
S e c t i o n 5 . 7 . N o P r o p o s e d L e g a l C h a n g e s .
T o t h e b e s t k n o w l e d g e o f t h e C o m m i s s i o n , t h e r e i s n o a m e n d m e n t , o r p r o p o s e d
a m e n d m e n t c e r t i f i e d f o r p l a c e m e n t o n a s t a t e w i d e b a l l o t , t o t h e C o n s t i t u t i o n o f t h e S t a t e o f
C a l i f o r n i a o r a n y p u b l i s h e d a d m i n i s t r a t i v e i n t e r p r e t a t i o n o f t h e C o n s t i t u t i o n o f t h e S t a t e o f
C a l i f o r n i a o r a n y S t a t e o f C a l i f o r n i a l a w , o r a n y l e g i s l a t i o n w h i c h h a s p a s s e d e i t h e r h o u s e o f t h e
S t a t e l e g i s l a t u r e , t h e e f f e c t o f w h i c h ( a ) w o u l d b e m a t e r i a l l y a d v e r s e l y a f f e c t t h e a b i l i t y o f t h e
C o m m i s s i o n t o p e r f o r m i t s o b l i g a t i o n s u n d e r t h i s A g r e e m e n t a n d t h e B o n d P u r c h a s e A g r e e m e n t
o r a n y o f t h e o t h e r R e l a t e d D o c u m e n t s o r ( b ) w o u l d i n v a l i d a t e , e l i m i n a t e o r r e d u c e t h e S a l e s T a x
L a w o r S a l e s T a x R e v e n u e s .
1 2 6 2 9 5 7 9 . 4
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2 0 0
Section 5.8. No Sovereign Immunity.
The Commission is not entitled to immunity from legal proceedings to enforce this
Agreement, the 2009 Series A-1 Bonds or any other Related Document (including, without
limitation, immunity from service of process or immunity from jurisdiction of any court
otherwise having jurisdiction) and is subject to claims and suits for damages in connection with
its obligations under the Agreement pursuant to and in accordance with the laws of the State
applicable to public entities such as the Commission.
Section 5.9. Incorporation of Representations and Warranties.
The Commission hereby makes to the Bank the same representations and warranties as
were made by it in the Bond Purchase Agreement and the Related Documents to which it is a
party. No amendment to such representations and warranties or defined terms made pursuant to
the Indenture shall be effective to amend such representations and warranties or defined terms as
incorporated by reference herein without the prior written consent of the Bank, except as
otherwise provided in Section 7.2(b) hereof.
Section 5.10. Bank Bonds.
The Bank Bonds purchased pursuant to Article II will be transferred to the Bank, free and
clear of all liens, security interests or claims of any Person other than the Bank, except for
consensual liens or other security interests as may be created by the Bank.
Section 5.11. Financial Statements.
The audited financial statements of the Commission for each of its fiscal years ended
June 30, [2007] and June 30, [2008], including balance sheets as of June 30 of each of said years,
all examined and reported on by independent public accountants, prepared by the Commission,
as heretofore delivered to the Bank correctly and fairly present the financial condition of the
Commission as of said dates and the results of the operations of the Commission for each of such
periods, respectively, and have been prepared in accordance with generally accepted accounting
principles consistently applied except as stated in the notes thereto; and there has been no
material adverse change in the condition, financial or otherwise, of the Commission since
June 30, [2008] from that set forth in said financial statements as of and for the period ended on
that date.
Section 5.12. Compliance with Laws and Contracts.
The execution, delivery and performance by the Commission of the Bond Purchase
Agreement and the Related Documents to which it is a party do not and will not (a) violate any
provision of any law, rule, regulation, order, writ, judgment, injunction, decree, determination or
award as currently in effect to which the Commission is subject; (b) result in a breach of or
constitute a default under the provisions of any resolution, indenture, loan or credit agreement or
any other agreement, lease or instrument to which the Commission may be or is subject or by
which it, or its property, is bound; or (c) result in, or require, the creation or imposition of any
mortgage, deed of trust, assignment, pledge, lien, security interest or other charge or
encumbrance of any nature or with respect to any of the properties of the Commission other than
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as provided herein and therein; and the transactions undertaken pursuant to the Indenture will not
result in a material default under any such law, rule, regulation, order, writ, judgment, injunction,
decree, determination or award or any such resolution, indenture, agreement, lease or instrument.
Section 5.13. Complete and Correct Information.
No representation, warranty or other statement made by the Commission with respect to
the Sales Tax Revenues in or pursuant to this Agreement, the Official Statement or any other
Related Document or any other document or financial statement with respect to the 2009 Series
A-1 Bonds provided by the Commission to the Bank in connection with this Agreement, the
Official Statement or any other Related Document, except as disclosed to the Bank in writing,
contains any untrue statement of a material fact or omits (as of the date made or furnished) any
material fact necessary to make the statements not misleading in light of the circumstances under
which they are made. All information, reports and other papers and data with respect to the
Sales Tax Revenues and the Commission's Parity Obligations furnished to the Bank were, at the
time the same were so furnished, accurate in all material respects. Any financial statements and
cash flows furnished to the Bank with respect to the Sales Tax Revenues and the Commission's
Parity Obligations were prepared in good faith on the basis of the assumptions stated therein,
which assumptions were fair and reasonable in light of conditions existing at the time of the
delivery of such financial statements and cash flows. No fact is known to the Commission that
materially and adversely affects or, in the future may (so far as it can reasonably foresee)
materially and adversely affect, the security for any of the 2009 Series A-1 Bonds or any other
Parity Obligation, or the Commission's ability to repay when due its obligations under this
Agreement, any of the 2009 Series A-1 Bonds, any Parity Obligations and the other Related
Documents or in the financial statements and other documents referred to in this Section 5.13 or
in such information, reports, papers and data or otherwise disclosed in writing to the Bank.
Section 5.14. Federal Reserve Board Regulations..
No part of the proceeds of any 2009 Series A-1 Bonds will be used for the purpose,
whether immediate, incidental or ultimate, to purchase or carry any margin stock (within the
meaning of Regulation U of the Board of Governors of the Federal Reserve System, as amended
from time to time), or to extend credit to others for the purpose of purchasing or carrying any
margin stock.
Section 5.15. Investment Company Act.
The Commission is not an "investment company" or a company "controlled" by an
"investment company," as such terms are defined in the Investment Company Act of 1940, as
amended.
Section 5.16. Trustee and Remarketing Agent.
U.S. Bank National Association is the duly appointed and acting Trustee and Barclays
Capital Inc. (or a successor or assign meeting the requirements of the Indenture and Section
7.2(a) hereof) is the duly appointed and acting Remarketing Agent for the 2009 Series A-1
Bonds
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Section 5.17. Tax Exempt Status.
The Commission has not taken any action or omitted to take any action, and knows of no
action taken or omitted to be taken by any other person or entity, which action, if taken or
omitted, would cause interest on the 2009 Series A-1 Bonds to be subject to personal income
taxes levied by the State.
Section 5.18. Permitted Investments.
As of the Effective Date, the Commission has no knowledge that it has made any material
investment, or entered into any agreement for the purpose of effecting any such investment,
which is not permitted to be made pursuant to the Act or the Indenture.
Section 5.19. Compliance with this Agreement.
The Commission is in compliance with the terms and conditions of this Agreement, and
no breach of the terms hereof nor any Event of Default, Special Event of Default or Suspension
Event has occurred and is continuing, and no event, act or omission has occurred and is
continuing which, with the lapse of time, the giving of notice, or both, would constitute an Event
of Default, Special Event of Default or Suspension Event or a breach of the terms hereof.
Section 5.20. Pledge of Sales Tax Revenues.
The Indenture creates a valid pledge in favor of the Trustee in the Sales Tax Revenues
and, as of the Effective Date, all necessary actions on the part of the Commission have been
taken as required to pledge the Sales Tax Revenues in favor of the Trustee under the Indenture.
The Commission hereby pledges the Sales Tax Revenues, on a subordinated basis, to the
payment of the Commitment Fees and all amounts due hereunder other than (a) principal and
interest payments on the 2009 Series A-1 Bonds (including the Bank Bonds). Except as
provided in the Indenture, the Commission has not pledged or granted a lien, security interest or
other encumbrance of any kind on the Sales Tax Revenues.
Section 5.21. Bonds.
Each 2009 Series A-1 Bond (including each Bank Bond) is entitled to the benefits of the
Indenture.
Section 5.22. Related Documents.
Each of the Related Documents (other than this Agreement) to which the Commission is
a party is in full force and effect and none of the Related Documents has been amended or
supplemented except by such amendments or supplements as have previously been delivered to
the Bank.
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ARTICLE VI
CONDITIONS PRECEDENT TO PURCHASE
Section 6.1. Conditions.
The obligation of the Bank to purchase Eligible Bonds hereunder on any date is subject to
the satisfaction of the following conditions, unless waived in writing by the Bank:
(a) No Special Event of Default or Suspension Event shall have occurred and
be continuing and the Bank's obligations hereunder shall not otherwise have been
terminated or suspended. If and to the extent that a Suspension Event shall have been
cured as provided in Section 8.11(b) hereof, the condition described in this Section 6.1(a)
will be deemed satisfied; and
(b) The Bank shall have timely received the Notice of Bank Purchase(s) as
provided in Section 2.3 hereof; provided, that if the Notice of Bank Purchase(s) is not
received in a timely manner, the Bank will be obligated to purchase Eligible Bonds on the
Business Day following receipt thereof.
Each notification delivered pursuant to clause (b) of this Section 6.1 shall constitute a
representation and warranty by the Commission on each Purchase Date that the condition
described in the clause (a) of this Section 6.1 has been satisfied on such Purchase Date.
As promptly as possible after satisfaction of the conditions set forth in (a) and (b) hereof,
the Bank Bonds to be purchased by the Bank on such Purchase Date shall be executed, registered
and, if applicable, delivered in accordance with the Indenture and this Agreement.
Section 6.2. Conditions to Bank Bond Amortization Period.
Bank Bonds will be eligible for the Bank Bond Amortization Period described in Section
3.1 hereof; provided that the following conditions are satisfied on the related Purchase Date:
(a) No Event of Default shall have occurred and be continuing on the related
Purchase Date; provided, however, that upon reinstatement of the Bank's obligation to purchase
Eligible Bonds as provided in Section 8.11(b) hereof, then this condition of Section 6.2 shall be
deemed satisfied; and
(b) All representations and warranties of the Commission contained in, or
incorporated by reference in, this Agreement are true and correct as of the related Purchase Date
(excluding those representations and warranties which, by their terms, are no longer true and/or
correct by virtue of the passage of time).
Unless the Commission shall have previously advised the Bank in writing that any one of
the above statements is no longer true, the Commission is deemed to have represented and
warranted on such Purchase Date that the above statements are true and correct
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ARTICLE VII
COVENANTS
Section 7.1. Affirmative Covenants of the Commission.
So long as any of the 2009 Series A-1 Bonds bearing interest at a Covered Rate shall be
outstanding (including any Bank Bonds) or any Obligations remain unpaid hereunder, the
Commission covenants and agrees as follows, unless the Bank shall otherwise consent in writing:
(a) Performance of This and Other Agreements. The Commission shall
punctually pay or cause to be paid all amounts payable under this. Agreement, the Indenture and
the other Related Documents and observe and perform all of the conditions, covenants and
requirements of this Agreement, the Indenture and the other Related Documents.
(b) Further Assurances. The Commission will at any and all times, insofar as
it may be authorized so to do by law, authorize, make, do, execute, acknowledge and deliver
every and all such further resolutions, acts, deeds, conveyances, assignments, recordings, filings,
transfers and assurances as may be necessary or desirable for the better assuring, conveying,
granting, assigning and confirming all and singular rights of the Bank hereunder or payment of
the obligations of the Commission arising under or pursuant to this Agreement and the Bank
Bonds, or intended so to be, or which the Commission may hereafter become bound to pledge or
assign thereto, including the maintenance of the security interests in and pledge of the Sales Tax
Revenues created pursuant to the Indenture.
(c) Books and Records; Inspection Rights. To the extent permitted by law
and with reasonable notice, the Commission will permit any person designated by the Bank to
visit the offices of the Commission to examine the books and financial records, including
minutes of meetings of any relevant governmental committees or agencies, and make copies
thereof or extracts therefrom, and to discuss the affairs, finances and accounts of the Commission
with its principal officials, all at such reasonable times and as often as the Bank may reasonably
request on behalf of the Bank; provided, however that the Commission shall not disclose to the
Bank any documents and information which are subject to confidentiality agreements and which
are not public record or otherwise available under California law for public inspection; and
provided further that the Commission acknowledges that its accounting and financial records are
not subject to any confidentiality agreement and are available for inspection. The Bank agrees to
maintain the confidentiality of all such books, records and information regarding the
Commission which is not otherwise publicly available; provided, however, that the Bank shall
not be precluded from disclosing such information or the contents of such books and records (i)
to its officers, directors, employees, agents, attorneys and accountants who have a need to know
such books, records or information in accordance with customary banking practices and who
receive such books, records or information having been made aware of the restrictions set forth
in this Section 7.1(c), (ii) to any actual or proposed Participant or Bank which has agreed in
writing to be bound by the provisions of this Section 7.1(c), (iii) to the extent disclosure is
required by law, statute, rule, regulation or judicial process or (iv) upon the lawful demand of
any court or agency having jurisdiction over the Bank or any Participant.
12629579.4
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"
1 2 6 2 9 5 7 9 . 4
( d ) R e p o r t i n g R e q u i r e m e n t s . T h e C o m m i s s i o n s h a l l f u r n i s h t o t h e B a n k :
( i ) a s s o o n a s a v a i l a b l e ( a n d , i n n o e v e n t , l a t e r t h a n o n e h u n d r e d
e i g h t y ( 1 8 0 ) d a y s a f t e r t h e e n d o f e a c h f i s c a l y e a r o f t h e C o m m i s s i o n ) , a c o p y o f
i t s a u d i t e d a n n u a l f i n a n c i a l s t a t e m e n t s , c o n s i s t i n g o f a b a l a n c e s h e e t a n d a
s t a t e m e n t o f r e v e n u e s , e x p e n d i t u r e s a n d c h a n g e s i n f u n d b a l a n c e s o f t h e
C o m m i s s i o n , i n c l u d i n g t h e S a l e s T a x R e v e n u e s f o r s u c h f i s c a l y e a r , s e t t i n g
f o r t h i n c o m p a r a t i v e f o r m t h e c o r r e s p o n d i n g f i g u r e s ( i f a n y ) f o r t h e p r e c e d i n g
f i s c a l y e a r , a l l i n r e a s o n a b l e d e t a i l , a n d a c c o m p a n i e d b y a n u n q u a l i f i e d o p i n i o n
o f a n a t i o n a l l y r e c o g n i z e d i n d e p e n d e n t c e r t i f i e d p u b l i c a c c o u n t i n g f i r m s t a t i n g
t h a t t h e y h a v e b e e n p r e p a r e d i n a c c o r d a n c e w i t h g e n e r a l l y a c c e p t e d a c c o u n t i n g
p r i n c i p l e s c o n s i s t e n t l y a p p l i e d a n d a c c o m p a n i e d b y a c e r t i f i c a t i o n f r o m t h e
E x e c u t i v e D i r e c t o r o r t h e C h i e f F i n a n c i a l O f f i c e r o f t h e C o m m i s s i o n a d d r e s s e d
t o t h e B a n k s t a t i n g t h a t n e i t h e r a n E v e n t o f D e f a u l t , S p e c i a l E v e n t o f D e f a u l t o r
S u s p e n s i o n E v e n t h a s o c c u r r e d w h i c h w a s c o n t i n u i n g a t t h e e n d o f s u c h f i s c a l
y e a r o r o n t h e d a t e o f h i s c e r t i f i c a t i o n , o r , i f s u c h a n e v e n t h a s o c c u r r e d a n d
w a s c o n t i n u i n g a t t h e e n d o f s u c h f i s c a l y e a r o r o n t h e d a t e o f h i s c e r t i f i c a t i o n ,
i n d i c a t i n g t h e n a t u r e o f s u c h e v e n t a n d t h e a c t i o n w h i c h t h e C o m m i s s i o n
p r o p o s e s t o t a k e w i t h r e s p e c t t h e r e t o ;
( i i ) a s s o o n a s a v a i l a b l e ( a n d i n n o e v e n t l a t e r t h a n n i n e t y ( 9 0 ) d a y s
a f t e r t h e e n d o f e a c h J u n e 3 0 a n d D e c e m b e r 3 1 ) , t h e u n a u d i t e d f i n a n c i a l
s t a t e m e n t s o f t h e C o m m i s s i o n i n c l u d i n g t h e b a l a n c e s h e e t a s o f e a c h J u n e 3 0 a n d
D e c e m b e r 3 1 a n d a s t a t e m e n t o f i n c o m e a n d e x p e n s e s , a l l i n r e a s o n a b l e d e t a i l a n d
a c c o m p a n i e d b y a c e r t i f i c a t i o n f r o m t h e E x e c u t i v e D i r e c t o r o r t h e C h i e f F i n a n c i a l
O f f i c e r o f t h e C o m m i s s i o n a d d r e s s e d t o t h e B a n k s t a t i n g t h a t n e i t h e r a n E v e n t o f
D e f a u l t , S p e c i a l E v e n t o f D e f a u l t o r S u s p e n s i o n E v e n t h a s o c c u r r e d w h i c h w a s
c o n t i n u i n g a t t h e e n d o f s u c h s i x - m o n t h p e r i o d o r o n t h e d a t e o f h i s c e r t i f i c a t i o n ,
o r , i f s u c h a n e v e n t h a s o c c u r r e d a n d w a s c o n t i n u i n g a t t h e e n d o f s u c h s i x - m o n t h
p e r i o d o r o n t h e d a t e o f h i s c e r t i f i c a t i o n , i n d i c a t i n g t h e n a t u r e o f s u c h e v e n t a n d
t h e a c t i o n w h i c h t h e C o m m i s s i o n p r o p o s e s t o t a k e w i t h r e s p e c t t h e r e t o ;
( i i i ) a s s o o n a s a v a i l a b l e , a n d i n a n y e v e n t w i t h i n f i f t e e n ( 1 5 ) d a y s
a f t e r t h e e n d o f e a c h M a r c h 3 1 ( s u c h q u a r t e r l y p e r i o d t o i n c l u d e e a c h d a y f r o m
a n d i n c l u d i n g J a n u a r y 1 s t o f e a c h y e a r t o a n d i n c l u d i n g M a r c h 3 1 s t o f e a c h
y e a r ) , J u l y 1 ( s u c h q u a r t e r l y p e r i o d t o i n c l u d e e a c h d a y f r o m a n d i n c l u d i n g
A p r i l 1 s t o f e a c h y e a r t o a n d i n c l u d i n g J u l y 1 s t o f e a c h y e a r ) , S e p t e m b e r 3 0
( s u c h q u a r t e r l y p e r i o d t o i n c l u d e e a c h d a y f r o m a n d i n c l u d i n g J u l y 1 s t o f e a c h
y e a r t o a n d i n c l u d i n g S e p t e m b e r 3 0 t h o f e a c h y e a r ) a n d J a n u a r y 1 ( s u c h
q u a r t e r l y p e r i o d t o i n c l u d e e a c h d a y f r o m a n d i n c l u d i n g O c t o b e r 1 s t o f e a c h
y e a r t o a n d i n c l u d i n g J a n u a r y 1 s t o f e a c h y e a r ) , t h e C o m m i s s i o n s h a l l p r o v i d e
t o t h e B a n k a s t a t e m e n t o f ( a ) t h e a m o u n t o f a l l S a l e s T a x R e v e n u e s r e c e i v e d
b y t h e C o m m i s s i o n o r t h e T r u s t e e , o n b e h a l f o f t h e C o m m i s s i o n , d u r i n g s u c h
f i s c a l q u a r t e r a n d a l l s u c h a m o u n t s t h a t a r e a v a i l a b l e t o m a k e d e b t s e r v i c e
p a y m e n t s o n t h e 2 0 0 9 B o n d s , ( b ) t h e a m o u n t o f a l l S a l e s T a x R e v e n u e s
r e c e i v e d b y t h e C o m m i s s i o n o r t h e T r u s t e e , o n b e h a l f o f t h e C o m m i s s i o n ,
d u r i n g t h e t w e l v e ( 1 2 ) m o n t h s e n d e d a s o f t h e e n d o f s u c h f i s c a l q u a r t e r a n d a l l
- 3 3 -
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12629579.4
such amounts that are available to make debt service payments on the 2009
Bonds (such amounts available to make debt service payments, the "Annual
Historical Sales Tax Revenues"), (c) the amount of all payments of principal
and interest on the 2009 Bonds (the "Annual Historical Sales Tax Revenues
Debt Service Payments") during the twelve (12) months ended as of the end
of each January 1 and July 1, (d) a projection by the Commission of the
amount of principal and interest coming due on the 2009 Bonds for the five (5)
years after the end of each January 1 and July 1 (with respect to any 2009
Bonds bearing interest at variable rates of interest or with respect to which
other payments may be made subject to the occurrence of contingencies, the
Commission may provide for such assumptions as the Commission determines
are reasonable under the circumstances), and (e) a calculation showing the ration
that the Annual Historical Sales Tax Revenues bear to the Annual Historical
Sales Tax Revenues Debt Service Payments after the end of each January 1 and
July 1;
(iv) as soon as possible after a closing, a copy of any official statement
of the Commission in connection with any other debt offering by the Commission
which is secured by Sales Tax Revenues;
(v) as soon as possible and in any event within five (5) Business Days
after the occurrence of each Event of Default or Default continuing on the date of
such statement, a statement of an Authorized Representative setting forth details
of such Event of Default or Default and the action which is being taken or
proposed to be taken with respect thereto;
(vi) promptly after the receipt or giving thereof, copies of all notices of
resignation by or removal of the Trustee or Remarketing Agent which are
received or given by the Commission;
(vii) promptly after the adoption thereof, copies of any amendments or
supplements to the Official Statement and each Related Document;
(viii) with reasonable promptness, such otheeinformation and data with
respect to the Sales Tax Revenues as from time to time may be reasonably and
lawfully requested by the Bank;
(ix) with reasonable promptness, a copy of its investment policy and
Interest Rate Swap Agreement applicable to the 2009 Bonds;
(x) within thirty (30) days of the adoption thereof, a copy of the annual
budget of the Commission prior to the commencement of each fiscal year of the
Commission, together with each amendment thereto as soon as the same becomes
available; and
(xi) such other information respecting the business, properties or the
condition or operations, financial or otherwise, of the Commission as the Bank
may from time to time reasonably request.
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As and to the extent that any financial statement, audit report or other filing described in
Section 7.1(d)(i), 7.1(d)(iii), 7.1(d)(vi) or 7.1(d)(ix) has been filed on a timely basis with the
Municipal Securities Rulemaking Board through its Electronic Municipal Market Access system
and the Commission has provided written notice thereof to the Bank, the requirements of such
Sections 7.1(d)(i), 7.1(d)(iii), 7.1(d)(vi) or 7.1(d)(ix), with respect thereto shall be deemed
satisfied.
(e) Compliance with Documents. The Commission will take all necessary
steps to assure that all 2009 Bonds will be issued in compliance with the Indenture. The
Commission agrees that it will perform and comply with each and every covenant and agreement
required to be performed or observed by it in the Related Documents.
(f) Amendments to the Sales Tax Law or Proposed Legislation. The
Commission shall furnish to the Bank (a) a copy of any amendments or modifications to the law
or any other legislation, initiative or referendum of which the Commission is aware which could
(i) annul, amend, modify, replace or otherwise adversely impact upon the Sales Tax Law or
(ii) lead to the diminution or reallocation of the Sales Tax Revenues or any portion thereof; or
(c) a written notice describing any other event which, in the reasonable judgment of the
Commission, is likely to have a material adverse effect on the Sales Tax Revenues or affect the
Commission's ability to perform its obligations under the 2009 Bonds or any of the Related
Documents.
(g) Changes to Law. The Commission shall vigorously oppose any rescission
of or amendment to or any other action under or in connection with the Sales Tax Revenues
(including, without limitation, any modification of the Sales Tax Law) which would or could
materially reduce the amount of the Sales Tax Revenues or the allocation of such revenues to the
payment of the 2009 Bonds or the obligations of the Commission hereunder or which would or
could in any manner materially impair or adversely affect the rights of the Commission to any or
all of the Sales Tax Revenues or to the security of the Bank or the owners of the 2009 Bonds.
(h) Selection of 2009 Series A-1 Bonds for Redemption. The Commission
shall select, or cause to be selected, for redemption any and all Bank Bonds subject to
redemption prior to selecting, or causing to be selected, for redemption any 2009 Series A-1
Bonds that are not Bank Bonds.
(i) Compliance With Law. The Commission shall comply with all laws, rules
and regulations (including all federal, state and local environmental and health and safety laws,
rules and regulations), and with all final orders, writs, judgments, injunctions, decrees or awards
to which it may be subject; provided, however, that the Commission may contest the validity or
application thereof and appeal or otherwise seek relief therefrom, and exercise any and all of the
rights and remedies which it may have with regard thereto, so long as such acts do not affect the
Commission's power and authority to execute and deliver this Agreement or any other Related
Documents to which it is a party, to perform its obligations and pay all amounts payable by it
hereunder and under the other Related Documents.
12629579.4
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208
(i) Notices. The Commission will promptly furnish, or cause to be furnished,
to the Bank (i) notice of the occurrence of any Event of Default or Default as defined herein or in
the Indenture, (ii) notice of the failure by the Remarketing Agent to perform any of its
obligations under the Remarketing Agreement or the Trustee to perform any of its obligations
under the Indenture, (iii) notice of any proposed substitution of this Agreement, (iv) each notice
required to be given to the Bank pursuant to the Indenture, (v) notice of any litigation,
administrative proceeding, proposed or enacted legislation or business development which may
reasonably be expected to materially adversely affect the Sales Tax Revenues, the transactions
authorized pursuant to the Indenture or the ability of the Commission to perform its obligations
as set forth hereunder, under the Indenture or under any of the other Related Documents to which
it is a party, (vi) copies of any communications delivered or received by the Commission
pursuant to the Indenture (unless, with respect to communication received by it under the
Indenture, the same are required to be furnished by the sender thereof directly to the Bank under
the terms of the Indenture), or copies of any communications to and from the Securities and
Exchange Commission or the Internal Revenue Service with respect to the transactions
contemplated hereby, (vii) notice of any downgrade, withdrawal, or suspension of the long-term
rating assigned by a Rating Agency to the 2009 Bonds or any Parity Obligation or the placement
of any such 2009 Bonds or Parity Obligation on credit watch by a Rating Agency or, if a Rating
Agency then maintaining ratings on the 2009 Bonds and Parity Obligation expresses in writing a
negative outlook as to the long-term rating of any such 2009 Series A-1 Bonds or Parity
Obligation, and (viii) such further financial and other information with respect to the Sales Tax
Revenues and the other transactions authorized pursuant to the Indenture as the Bank may
reasonably request from time to time.
(k) Liquidity.
(1) Other than in connection with a Conversion Date, the Commission
shall use its best efforts to obtain an Alternate Liquidity Facility to replace this
Agreement in the event (A) the Bank shall decide not to extend the Expiration Date
pursuant to Section 10.10(b) hereof or the Commission fails to request such an extension
on a timely basis, (B) the Commission terminates this Agreement pursuant to Section 2.4
hereof, (C) the Bank shall furnish a Notice of Termination Date pursuant to Section
8.11(c) hereof or (D) a Default Tender shall have been effected with any funds made
available hereunder.
(ii) The Commission agrees that any Alternate Liquidity Facility will
require, as a condition to the effectiveness of the Alternate Liquidity Facility, that the
Commission or the issuer of the Alternate Liquidity Facility will provide funds to the
extent necessary, in addition to other funds available, on the proposed Substitution Date,
for the purchase of all Bank Bonds at par plus all accrued interest thereon (plus any
Differential Interest Amount and Excess Bank Bond Interest) through the proposed
Substitution Date. On such proposed Substitution Date, any and all amounts due
hereunder to the Bank shall be payable in full to the Bank.
(iii) The Commission shall not permit an Alternate Liquidity Facility to
become effective with respect to less than all of the 2009 Series A-1 Bonds bearing
interest at a Covered Rate without the prior written consent of the Bank.
12629579.4
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209
"
( 1 ) P r e s e r v a t i o n o f E x i s t e n c e . T o t h e f u l l e s t e x t e n t p e r m i t t e d b y l a w , t h e
C o m m i s s i o n s h a l l m a i n t a i n i t s l e g a l e x i s t e n c e .
( m ) D i s c l o s u r e o f P a r t i c i p a n t s . T h e C o m m i s s i o n s h a l l p e r m i t t h e B a n k t o
d i s c l o s e a n y i n f o r m a t i o n r e c e i v e d b y t h e B a n k i n c o n n e c t i o n h e r e w i t h , i n c l u d i n g w i t h o u t
l i m i t a t i o n t h e f i n a n c i a l i n f o r m a t i o n d e s c r i b e d i n S e c t i o n 7 . 1 ( d ) h e r e o f , t o a n y P a r t i c i p a n t s ;
p r o v i d e d , t h a t t h e B a n k s h a l l r e q u i r e , a s a c o n d i t i o n t o p r o v i d i n g a n y s u c h i n f o r m a t i o n t o a n y
P a r t i c i p a n t , a n a g r e e m e n t o n t h e p a r t o f s a i d P a r t i c i p a n t t o m a i n t a i n t h e c o n f i d e n t i a l i t y o f s a i d
i n f o r m a t i o n e x c e p t f o r t h e r e a s o n s s e t f o r t h i n t h e s e c o n d p r o v i s o t o S e c t i o n 7 . 1 ( c ) h e r e o f .
( n ) O t h e r C o v e n a n t s . F o r t h e b e n e f i t o f t h e B a n k , t h e C o m m i s s i o n s h a l l
c o m p l y w i t h , a b i d e b y a n d b e r e s t r i c t e d b y a l l t h e a g r e e m e n t s , c o v e n a n t s , o b l i g a t i o n s a n d
u n d e r t a k i n g s c o n t a i n e d i n t h e p r o v i s i o n s o f t h e I n d e n t u r e a n d t h e o t h e r R e l a t e d D o c u m e n t s , a l l
o f w h i c h p r o v i s i o n s , t o g e t h e r w i t h t h e r e l a t e d d e f i n i t i o n s , e x h i b i t s a n d a n c i l l a r y p r o v i s i o n s , a r e
i n c o r p o r a t e d h e r e i n b y r e f e r e n c e a n d m a d e a p a r t h e r e o f t o t h e s a m e e x t e n t a n d w i t h t h e s a m e
f o r c e a n d e f f e c t a s i f t h e s a m e h a d b e e n h e r e i n s e t f o r t h i n t h e i r e n t i r e t y a n d , w i t h o u t r e g a r d t o
g i v i n g e f f e c t t o a n y a m e n d m e n t o r m o d i f i c a t i o n o f a n y p r o v i s i o n s o f t h e s u c h d o c u m e n t s o r a n y
w a i v e r o f c o m p l i a n c e t h e r e w i t h , n o s u c h a m e n d m e n t , m o d i f i c a t i o n o r w a i v e r ( e x c e p t a s
e x p r e s s l y n o t e d a b o v e ) s h a l l i n a n y m a n n e r c o n s t i t u t e a n a m e n d m e n t , m o d i f i c a t i o n o r w a i v e r o f
t h e p r o v i s i o n s t h e r e o f a s i n c o r p o r a t e d h e r e i n u n l e s s c o n s e n t e d t o i n w r i t i n g b y t h e B a n k ;
p r o v i d e d , t h a t n o s u c h c o n s e n t s h a l l b e n e c e s s a r y i n t h e e v e n t ( i ) t h e B a n k s h a l l h a v e f a i l e d t o
h o n o r i t s o b l i g a t i o n t o p u r c h a s e E l i g i b l e B o n d s h e r e u n d e r o r ( i i ) i n t h e e v e n t n o s u c h c o n s e n t i s
r e q u i r e d p u r s u a n t t o S e c t i o n 7 . 2 ( b ) h e r e o f .
( o ) C o n v e r s i o n s ; D e f e a s a n c e . T h e C o m m i s s i o n s h a l l p r o m p t l y f u r n i s h , o r
c a u s e t o b e f u r n i s h e d , t o t h e B a n k , n o t l a t e r t h a n i t s f u r n i s h i n g t h e s a m e t o t h e R e m a r k e t i n g
A g e n t , a c o p y o f a n y w r i t t e n n o t i c e f u r n i s h e d b y t h e C o m m i s s i o n t o t h e R e m a r k e t i n g A g e n t
p u r s u a n t t o t h e I n d e n t u r e i n d i c a t i n g a p r o p o s e d c o n v e r s i o n o f t h e i n t e r e s t r a t e o n t h e 2 0 0 9 S e r i e s
A - 1 B o n d s t o a r a t e o t h e r t h a n a C o v e r e d R a t e . I n a d d i t i o n , t h e C o m m i s s i o n w i l l n o t d e f e a s e ,
n o r a l l o w t h e d e f e a s a n c e o f , t h e 2 0 0 9 S e r i e s A - 1 B o n d s w i t h o u t h a v i n g c o n t e m p o r a n e o u s l y
s a t i s f i e d a l l o f i t s O b l i g a t i o n s h e r e u n d e r , i n c l u d i n g t h e B a n k B o n d s .
( p ) T r u s t e e a n d R e m a r k e t i n g A g e n t . T h e C o m m i s s i o n s h a l l u s e r e a s o n a b l e
e f f o r t s t o c a u s e t h e T r u s t e e a n d e a c h R e m a r k e t i n g A g e n t a t a l l t i m e s t o c o m p l y w i t h t h e t e r m s o f
t h e I n d e n t u r e a n d t h e o t h e r R e l a t e d D o c u m e n t s t o w h i c h e a c h i s a p a r t y o r b y w h i c h s u c h p a r t y i s
b o u n d . I n a d d i t i o n , t h e C o m m i s s i o n w i l l n o t p e r m i t t h e p o s i t i o n o f R e m a r k e t i n g A g e n t t o b e
v a c a n t w i t h o u t o b t a i n i n g t h e p r i o r w r i t t e n c o n s e n t o f t h e B a n k t h e r e t o .
( 9 ) U s e o f B o n d P r o c e e d s . T h e C o m m i s s i o n s h a l l c a u s e ( i ) t h e p r o c e e d s f r o m
m o n e y s r e c e i v e d h e r e u n d e r t o b e u s e d s o l e l y t o p a y t h e P u r c h a s e P r i c e o f 2 0 0 9 S e r i e s A - 1 B o n d s
a s m o r e f u l l y d e s c r i b e d i n S e c t i o n s 2 . 1 a n d 2 . 3 h e r e o f , a n d ( i i ) t h e p r o c e e d s o f t h e 2 0 0 9 S e r i e s
A - 1 B o n d s t o b e u s e d s o l e l y f o r t h e p u r p o s e s s e t f o r t h i n t h e I n d e n t u r e a n d t h e O f f i c i a l
S t a t e m e n t .
1 2 6 2 9 5 7 9 . 4
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2 1 0
Section 7.2. Negative Covenants of the Commission.
So long as any of the 2009 Series A-1 Bonds (including any Bank Bonds) or any
Obligations remain unpaid hereunder, the Commission shall not do any of the following, without
the prior written consent of the Bank, which consent shall not be unreasonably withheld:
(a) Successor Remarketing Agent and Remarketing Agreement. Appoint,
permit or suffer to be appointed any successor Remarketing Agent unless (i) such successor
meets the requirements for a remarketing agent under the Indenture; or (ii) the Commission
provides at least ten (10) Business Days' notice to the Bank and obtains the prior written consent
of the Bank to such replacement remarketing agent, which consent shall not be unreasonably
withheld.
(b) Amendments to the Indenture. Without the prior written consent of the
Bank, (i) consent or agree to or permit any rescission of or amendment to the Act or the Sales
Tax Law which would reduce the amount of the Sales Tax Revenues or the obligations of the
Commission hereunder or which would in any manner materially impair or materially adversely
affect the rights of the Commission to the Sales Tax Revenues or the security of the Indenture; or
(ii) agree to the amendment of the Indenture such that payments to holders of 2009 Series A-1
Bonds are impaired or reduced or the priority of the obligations of the Commission under the
Indenture or to the Bank hereunder is adversely affected in any way; or (iii) agree to any
amendment of the Indenture whatsoever which will materially and adversely affect the rights or
obligations of the Bank or the holders of 2009 Series A-1 Bonds in respect thereof; provided that
no consent shall be required or impairment deemed or adverse affect assumed from the issuance
of additional Bonds in accordance with the Indenture.
(c) Bank Disclosure. Include in the Official Statement any information
concerning the Bank that is not supplied in writing, or otherwise consented to, by the Bank
expressly for inclusion therein, nor shall the Commission make any changes in any reference to
the Bank in any amendment or supplement to the Official Statement. In addition, the
Commission shall not include in any offering document for any debt secured by the Sales Tax
Revenues (other than the 2009 Bonds) any information concerning the Bank that is not supplied
in writing, or otherwise consented to, by the Bank expressly for inclusion therein; provided, that
the Commission may include references to the existence of this Agreement, the Bank and its role
with respect to the 2009 Series A-1 Bonds without the Bank's consent thereto in connection with
(i) the preparation of an offering document for such debt (other than the 2009 Series A-1 Bonds),
(ii) the Commission's satisfaction of its continuing disclosure requirements, (iii) the preparation
of its annual financial statements; and (iv) compliance with any other legal or regulatory
requirement applicable to the Commission.
(d) Maintenance of Tax -Exempt Status of the 2009 Series A -I Bonds. Take
any action or omit to take any action which, if taken or omitted, would adversely affect the
exclusion from gross income of such interest on the 2009 Series A-1 Bonds for purposes of the
exemption of such interest from Federal and State income taxes:
12629579.4
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"
( e ) F e d e r a l R e s e r v e B o a r d R e g u l a t i o n s . U s e t h e m o n e y s r e c e i v e d h e r e u n d e r ,
o r p e r m i t t h e u s e o f t h e m o n e y s r e c e i v e d h e r e u n d e r , i n v i o l a t i o n o f R e g u l a t i o n U , a s a m e n d e d ,
p r o m u l g a t e d b y t h e B o a r d o f G o v e r n o r s o f t h e F e d e r a l R e s e r v e S y s t e m .
( f ) A c c o u n t i n g M e t h o d M a t e r i a l l y c h a n g e i t s m e t h o d o f a c c o u n t i n g r e l a t i n g
t o S a l e s T a x R e v e n u e s , o r t h e t i m e s o f c o m m e n c e m e n t o r t e r m i n a t i o n o f f i s c a l y e a r s o r o t h e r
a c c o u n t i n g p e r i o d s r e l a t i n g t o S a l e s T a x R e v e n u e s w i t h o u t f i r s t d i s c l o s i n g i n w r i t i n g s u c h
c h a n g e t o t h e B a n k .
A R T I C L E V I I I
E V E N T S O F D E F A U L T
U p o n t h e o c c u r r e n c e o f a n y o f t h e f o l l o w i n g e v e n t s ( e a c h a n " E v e n t o f D e f a u l t " ) :
S e c t i o n 8 . L P a y m e n t s .
T h e C o m m i s s i o n s h a l l f a i l t o p a y w h e n d u e ( a ) ( i ) a n y p r i n c i p a l o r s i n k i n g f u n d
r e q u i r e m e n t d u e o n a n y 2 0 0 9 S e r i e s A - 1 B o n d ( i n c l u d i n g a n y B a n k B o n d p r i o r t o t h e
c o m m e n c e m e n t o f t h e B a n k B o n d A m o r t i z a t i o n P e r i o d ) a n d ( i i ) a n y i n t e r e s t o n a n y 2 0 0 9 S e r i e s
A - 1 B o n d ( i n c l u d i n g a n y B a n k B o n d ) , ( b ) a n y p r i n c i p a l p a y m e n t d u e o n a n y B a n k B o n d d u r i n g
t h e B a n k B o n d A m o r t i z a t i o n P e r i o d p u r s u a n t t o S e c t i o n 3 . 1 ( b ) h e r e o f , o r ( c ) a n y o t h e r a m o u n t
o w e d t o t h e B a n k p u r s u a n t t o S e c t i o n 2 . 2 o r S e c t i o n 3 . 1 h e r e o f ( o t h e r t h a n a m o u n t s d e s c r i b e d i n
( a ) a n d ( b ) a b o v e ) ; o r
S e c t i o n 8 . 2 . O t h e r P a y m e n t s .
T h e C o m m i s s i o n s h a l l f a i l t o p a y w h e n d u e a n y a m o u n t o w i n g u n d e r S e c t i o n 2 . 7 ,
S e c t i o n 2 . 8 , S e c t i o n 2 . 9 o r S e c t i o n 1 0 . 3 h e r e o f ; o r
S e c t i o n 8 . 3 . R e p r e s e n t a t i o n s .
A n y m a t e r i a l r e p r e s e n t a t i o n o r w a r r a n t y m a d e b y o r o n b e h a l f o f t h e C o m m i s s i o n i n t h i s
A g r e e m e n t , t h e I n d e n t u r e o r i n a n y o t h e r R e l a t e d D o c u m e n t o r i n a n y c e r t i f i c a t e o r s t a t e m e n t
d e l i v e r e d h e r e u n d e r o r t h e r e u n d e r s h a l l b e i n c o r r e c t o r u n t r u e i n a n y m a t e r i a l r e s p e c t w h e n m a d e
o r d e e m e d t o h a v e b e e n m a d e ; o r
S e c t i o n 8 . 4 . C e r t a i n C o v e n a n t s .
T h e C o m m i s s i o n s h a l l d e f a u l t i n t h e d u e p e r f o r m a n c e o r o b s e r v a n c e o f a n y o f t h e
c o v e n a n t s s e t f o r t h i n S e c t i o n 7 . 1 ( a ) , 7 . 1 ( h ) , 7 . 1 ( k ) , 7 . 1 ( 1 ) , 7 . 1 ( o ) , 7 . 1 ( q ) , o r 7 . 2 ( b ) o r 7 . 2 ( d )
h e r e o f ; o r
S e c t i o n 8 . 5 . O t h e r C o v e n a n t s .
T h e C o m m i s s i o n s h a l l m a t e r i a l l y d e f a u l t i n t h e d u e p e r f o r m a n c e o r o b s e r v a n c e o f a n y
o t h e r t e r m , c o v e n a n t o r a g r e e m e n t c o n t a i n e d i n t h i s A g r e e m e n t ( o t h e r t h a n t h o s e r e f e r r e d t o i n
S e c t i o n s 8 . 1 , 8 . 2 , 8 . 3 a n d 8 . 4 h e r e o f ) , t h e I n d e n t u r e o r a n y o t h e r R e l a t e d D o c u m e n t a n d s u c h
1 2 6 2 9 5 7 9 . 4
- 3 9 -
2 1 2
default shall remain unremedied for a period of thirty (30) days after the Commission shall have
received notice thereof; or
Section 8.6. Judgments.
One or more final, unappealable judgment(s) against the Commission for the payment of
money, which judgment(s) is not covered by insurance, and which judgment(s) is to be enforced
pursuant to a lien upon, or an attachment against, any or all of the Sales Tax Revenues, the
operation or result of which judgment(s), individually or in the aggregate, equal or exceed
$15,000,000 and which judgment(s) shall remain unpaid, undischarged, unbonded or
undismissed for a period of sixty (60) days; or
Section 8.7. Insolvency.
(a) The Commission shall commence any case, proceeding or other action
(i) under any existing or future law of any jurisdiction, domestic or foreign, relating to
bankruptcy, insolvency, reorganization or relief of debtors, seeking to have an order for relief
entered with respect to it, or seeking to adjudicate it a bankrupt or insolvent, or seeking
reorganization, arrangement, adjustment, winding -up, liquidation, dissolution, composition or
other relief with respect to it, or seeking to declare a moratorium with respect to the 2009 Series
A-1 Bonds or the Parity Obligations, or (ii) seeking appointment of a receiver, trustee, custodian
or other similar official for it or for all or any substantial part of its assets or for all or any portion
of the Sales Tax Revenues, or the Commission shall make a general assignment for the benefit of
its creditors; or (b) there shall be commenced against the Commission any case, proceeding or
other action of a nature referred to in clause (a) above which (i) results in an order for such relief
or in the appointment of a receiver or similar official or (ii) remains undismissed, undischarged
or unbonded for a period of sixty (60) days; or (c) there shall be commenced against the
Commission, any case, proceeding or other action seeking issuance of a warrant of attachment,
execution, distraint or similar process against all or any substantial part of its assets or for all or
any portion of the Sales Tax Revenues, which results in the entry of an order for any such relief
which shall not have been vacated, discharged, or stayed or bonded pending appeal within sixty
(60) days from the entry thereof; or (d) the Commission shall take any action in furtherance of,
or indicating its consent to, approval of, or acquiescence in, any of the acts set forth in clause (a),
(b) or (c) above; or (e) the Commission shall generally not, or shall be unable to, or shall admit
in writing, its inability to, pay its debts; or
Section 8.8. Invalidity.
(a) Any provision of the Act, this Agreement, the Indenture or the 2009 Series
A-1 Bonds relating to (i) the ability or the obligation of the Commission to pay, when due, the
principal of or interest on the 2009 Series A-1 Bonds (including any Bank Bonds) or on any
Parity Obligation or (ii) the Sales Tax Revenues securing said 2009 Series A-1 Bonds and Parity
Obligation, shall at any time, and for any reason, cease to be valid and binding on the
Commission, or shall be declared to be null and void, invalid or unenforceable as the result of a
final nonappealable judgment by any federal or state court or as a result of any legislative or
administrative action by any Governmental Authority having jurisdiction over the Commission;
or (b) the Commission repudiates or otherwise denies that it has any further liability or obligation
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under or with respect to any provision of the Act, this Agreement, the Indenture, the 2009 Series
A-1 Bonds or the Parity Obligations relating to (i) the ability or the obligation of the Commission
to pay, when due, the principal of or interest on the 2009 Series A-1 Bonds (including any Bank
Bonds) or on any Parity Obligation or (ii) the Sales Tax Revenues securing said 2009 Series A-1
Bonds and Parity Obligation; or (c) the State or the Commission shall have taken or pe> nutted to
be taken any official action, or has duly enacted any statute, which would materially adversely
affect the enforceability of any provision of this Agreement, the 2009 Series A-1 Bonds, the Act,
the Indenture or any Panty Obligation relating to (i) the ability or the obligation of the
Commission to pay, when due, the principal of or interest on the 2009 Series A-1 Bonds
(including any Bank Bonds) or on any Parity Obligation or (ii) the Sales Tax Revenues securing
said 2009 Series A-1 Bonds (including any Bank Bonds) and Parity Obligation; or (d) any
Governmental Authority with jurisdiction to rule on the validity or enforceability of this
Agreement, the 2009 Series A-1 Bonds, the Act, the Indenture or any Parity Obligation shall find
or rule, in a judicial or administrative proceeding, that any provision of this Agreement, the 2009
Series A-1 Bonds, the Act, the Indenture or any Parity Obligation, as the case may be, relating to
(i) the ability or the obligation of the Commission to pay, when due, the principal of or interest
on the 2009 Series A-1 Bonds (including any Bank Bonds) or on any Parity Obligation or (ii) the
Sales Tax Revenues securing said 2009 Series A-1 Bonds (including any Bank Bonds) and
Panty Obligation, is not valid or not binding on, or enforceable against, the Commission; or (e)
the State or the Commission (i) makes a claim in a judicial or administrative proceeding that the
Commission has no further liability or obligation hereunder, under the 2009 Series A-1 Bonds
(including any Bank Bonds), the Act, the Indenture or any Parity Obligation to pay, when due,
the principal of or interest on the 2009 Series A-1 Bonds (including any Bank Bonds) or on any
Parity Obligation or (ii) contests in a judicial or administrative proceeding the validity or
enforceability of any provision of this Agreement, the 2009 Series A-1 Bonds (including any
Bank Bonds), the Act, the Indenture or any Parity Obligation relating to or otherwise affecting
(A) the Commission's ability or obligation to pay, when due, the principal of or interest on the
2009 Series A-1 Bonds (including any Bank Bonds) or on any Parity Obligation or (B) the Sales
Tax Revenues securing said 2009 Series A-1 Bonds (including any Bank Bonds) and Parity
Obligation; or (f) a debt moratorium or comparable extraordinary restriction on repayment of
principal or interest on any debt shall have been declared or imposed (whether or not in writing)
with respect to the 2009 Series A-1 Bonds (including any Bank Bond) or on any Parity
Obligation; or
Section 8.9. Ratings Downgrade.
Moody's, Standard & Poor's[, Fitch] and any other Rating Agency then rating the 2009
Series A-1 Bonds and any Parity Obligation shall have (a) assigned the 2009 Series A-1 Bonds
or any Parity Obligation a long-term rating below "Baa3" by Moody's and "BBB-" by Standard
& Poor's/Fitch (or comparable rating in the case of another Rating Agency), (b) withdrawn their
long-term ratings of the 2009 Series A-1 Bonds or any Parity Obligation for any credit related
reasons or (c) suspended their long-term ratings of the 2009 Series A-1 Bonds or any Parity
Obligation for any credit related reasons; provided, however, that any downgrade, withdrawal or
suspension described in any of the foregoing provisions of this Section 8.9 shall not be deemed
an Event of Default hereunder if said downgrade, withdrawal or suspension, as the case may be,
shall be attributable to the downgrade, withdrawal or suspension of the long-term ratings
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assigned to any bond insurance or other credit enhancement provided by a Person other than the
Commission; or
Section 8.10. Cross Default.
(a) Except as otherwise provided in clause (b) below, any "Event of Default"
as set forth in Section 7.01 of the Indenture shall occur and be continuing or any "Event of
Default" shall occur and be continuing under any other agreement between the Conunission and
the Bank regarding Parity Obligations, if any; or (b) the Commission shall fail to make any
payment in respect of principal or interest on any Parity Obligation, issued and outstanding or to
be issued, when due (i.e., whether upon said Parity Obligation's scheduled maturity, required
prepayment, acceleration, upon demand or otherwise, except as such payments may be
accelerated, demanded or required to be prepaid under this Agreement), and such failure shall
continue after the applicable grace period, if any, specified in the agreement or instrument
relating to such Parity Obligation.
then, and in any such event, the Bank may take any one or more of the following actions:
Section 8.11. Remedies.
(a) In the case of any Special Event of Default, the Available Commitment
shall immediately be reduced to zero, in which case the obligations of the Bank under Article II
of this Agreement shall immediately terminate and expire without requirement of notice by the
Bank; provided, that (i) the Event of Default described in Section 8.1(a) will not qualify as a
"Special Event of Default" hereunder if the failure to pay the principal of, or interest on, a Bank
Bond is due solely to an acceleration of all of the Bank Bonds by the Bank for any reason other
than nonpayment as described in Section 8.1(a) hereof and (ii) the Suspension Events described
in Section 8.11(b) hereof will not qualify as "Special Events of Default" unless and until the
conditions described in said Section 8.11(b) for such qualification have been satisfied. After
such termination or expiration, the Bank shall deliver promptly to the Commission, the Trustee
and the Remarketing Agent written notice of such termination or expiration; provided, however,
that failure to provide such written notice shall have no effect on the validity or enforceability of
such termination or expiration.
(b) In the case of a Suspension Event, the obligation of the Bank to purchase
Eligible Bonds under this Agreement shall be immediately suspended without notice or demand
and, thereafter, the Bank shall be under no obligation to purchase Eligible Bonds until the
Available Commitment is reinstated as described below. Promptly upon the occurrence of any
such Suspension Event, the Bank shall notify the Commission, the Trustee and the Remarketing
Agent of such suspension and the effective date of such suspension in writing by facsimile,
promptly confirmed by regular mail; provided, that the Bank shall incur no liability of any kind
by reason of its failure to give such notice and such failure shall in no way affect the suspension
of the Available Commitment or its obligation to purchase Eligible Bonds pursuant to this
Agreement.
(i) Upon the occurrence of an Event of Default described in Section 8.1(6),
the Bank's obligations to purchase Eligible Bonds shall be suspended immediately and
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automatically and remain suspended until the Commission cures the Event of Default
resulting in said suspension or the date on which the Bank's obligations hereunder have
terminated or expired in accordance with the terms hereof, whichever is the first to occur
(the "Termination Date"). If the Commission shall cure the Event of Default described
in Section 8.1(b) prior to the Termination Date, then the Available Commitment and the
obligations of the Bank under this Agreement shall thereupon be reinstated (unless the
Commitment Period shall otherwise have been terminated, suspended or expired as
provided in this Agreement). Notwithstanding the foregoing, if the Commission shall not
have cured the Event of Default resulting in said suspension prior to the Termination
Date, then the Available Commitment and the obligations of the Bank to purchase
Eligible Bonds shall terminate on the Termination Date without notice or demand and,
thereafter, the Bank shall be under no obligation to purchase Eligible Bonds.
(ii) Upon the occurrence of an Event of Default described in Section 8.7(b)(i),
the Bank's obligations to purchase Eligible Bonds shall be suspended immediately and
automatically and remain suspended until said case, proceeding or other action referred to
therein is either dismissed, discharged or bonded or the Termination Date occurs,
whichever is first. In the event that said Event of Default shall have been dismissed,
discharged or bonded prior to the Termination Date, then the Available Commitment and
the obligation of the Bank to purchase Eligible Bonds shall be reinstated and the terms of
this Agreement shall continue in full force and effect as if there had been no such
suspension (unless the Commitment Period shall otherwise have been terminated,
suspended or expired as provided in this Agreement). In the event that said Suspension
Event shall not have been dismissed, discharged or bonded prior to the Termination Date,
then the Available Commitment and the obligation of the Bank to purchase Eligible
Bonds shall terminate on such Termination Date without notice or demand and,
thereafter, the Bank shall be under no obligation to purchase Eligible Bonds.
(iii) Upon the occurrence of a Default described in Section 8.7(b)(ii), the
Bank's obligations to purchase Eligible Bonds shall be immediately and automatically
suspended and remain suspended until the case, proceeding or other action referred to
therein is either dismissed, discharged or bonded within sixty (60) days from the
commencement of such case, proceeding or action, or the Termination Date occurs,
whichever is first. In the event that said Suspension Event shall have been dismissed,
discharged or bonded within the sixty (60) day period described therein and prior to the
Termination Date, then the Available Commitment and the obligation of the Bank to
purchase Eligible Bonds shall be reinstated and the terms of this Agreement shall
continue in full force and effect as if there had been no such suspension (unless the
Commitment Period shall otherwise have been terminated, suspended or expired as
provided in this Agreement). In the event that said Suspension Event shall not have been
dismissed, discharged or bonded within such sixty (60) day period when the Termination
Date occurs, then the Available Commitment and the obligation of the Bank to purchase
Eligible Bonds shall terminate on the Termination Date without notice or demand and,
thereafter, the Bank shall be under no obligation to purchase Eligible Bonds.
(iv) Upon the occurrence of a Default described in Section 8.7(c), the Bank's
obligations to purchase Eligible Bonds shall be immediately and automatically suspended
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216
and remain suspended until the case, proceeding or other action referred to therein is
either vacated, discharged, or stayed or bonded pending appeal within sixty (60) days
from the commencement of such case, proceeding or action, or the Termination Date
occurs, whichever is first. In the event that said Suspension Event shall have been
vacated, discharged, or stayed or bonded pending appeal within the sixty (60) day period
described therein and prior to the Termination Date, then the Available Commitment and
the obligation of the Bank to purchase Eligible Bonds shall be reinstated and the terms of
this Agreement shall continue in full force and effect as if there had been no such
suspension (unless the Commitment Period shall otherwise have been terminated,
suspended or expired as provided in this Agreement). In the event that said Suspension
Event shall not have been vacated, discharged, or stayed or bonded pending appeal within
such sixty (60) day period when the Termination Date occurs, then the Available
Commitment and the obligation of the Bank to purchase Eligible Bonds shall terminate
on such Termination Date without notice or demand and, thereafter, the Bank shall be
under no obligation to purchase Eligible Bonds.
(v) Upon the occurrence of an Event of Default described in Section 8.8(d) or
8.8(e), the Bank's obligations to purchase Eligible Bonds shall be immediately and
automatically suspended and remain suspended unless and until a court with jurisdiction
to rule on such an Event of Default shall enter a final and nonappealable judgment that
any of the material provisions of the Act or any other document described in Section
8.8(d) are not valid or not binding on, or enforceable against, the Commission or that a
claim or contest described in Section 8.8(e) shall have been upheld in favor of the State
or the Commission in accordance with a final and nonappealable judgment, then, in each
such case, the Available Commitment and the obligation of the Bank to purchase Eligible
Bonds shall immediately terminate without notice or demand and, thereafter, the Bank
shall be under no obligation to purchase Eligible Bonds. If a court with jurisdiction to
rule on such an Event of Default shall find or rule by entry of a final and nonappealable
judgment that the material provision of the Act or any other document described in
Section 8.8(d) is valid and binding on, or enforceable against, the Commission or that the
claim or contest described in Section 8.8(e) shall have been dismissed pursuant to a final
and nonappealable judgment, then the Available Commitment and the obligations of the
Bank under this Agreement shall, in each such case, thereupon be reinstated (unless the
Commitment Period shall otherwise have been terminated, suspended or expired as
provided in this Agreement). Notwithstanding the foregoing, if the suspension of the
obligations of the Bank pursuant to any Event of Default described in Section 8.8(d) or
8.8(e) remains in effect and litigation is still pending and a determination regarding same
shall not have been dismissed or otherwise made pursuant to a final and non -appealable
judgment, as the case may be, when the Termination Date occurs, then the Available
Commitment and the obligation of the Bank to purchase Eligible Bonds shall terminate
on the Termination Date without notice or demand and, thereafter, the Bank shall be
under no obligation to purchase Eligible Bonds.
In the case of each Suspension Event, the Trustee shall subsequently notify all
Bondholders of the suspension and/or termination of both the Available Commitment and
the obligation of the Bank to purchase Eligible Bonds.
12629579.4
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•
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217
"
( c ) U p o n t h e o c c u r r e n c e o f a n y E v e n t o f D e f a u l t , t h e B a n k s h a l l h a v e a l l
r e m e d i e s p r o v i d e d a t l a w o r e q u i t y , i n c l u d i n g , w i t h o u t l i m i t a t i o n , s p e c i f i c p e r f o r m a n c e ; a n d i n
a d d i t i o n , t h e B a n k , i n i t s s o l e d i s c r e t i o n , m a y d o o n e o r m o r e o f t h e f o l l o w i n g : ( i ) d e c l a r e a l l
o b l i g a t i o n s o f t h e C o m m i s s i o n t o t h e B a n k h e r e u n d e r ( o t h e r t h a n p a y m e n t s o f p r i n c i p a l a n d
r e d e m p t i o n p r i c e o f a n d i n t e r e s t o n t h e B a n k B o n d s u n l e s s s a i d B a n k B o n d s h a v e o t h e r w i s e
b e c o m e s u b j e c t t o a c c e l e r a t i o n p u r s u a n t t o S e c t i o n o f t h e I n d e n t u r e ) t o b e i m m e d i a t e l y d u e
a n d p a y a b l e , a n d t h e s a m e s h a l l t h e r e u p o n b e c o m e d u e a n d p a y a b l e w i t h o u t d e m a n d ,
p r e s e n t m e n t , p r o t e s t , n o t i c e o f i n t e n t t o a c c e l e r a t e , n o t i c e o f a c c e l e r a t i o n o r f u r t h e r n o t i c e o f a n y
k i n d , a l l o f w h i c h a r e h e r e b y e x p r e s s l y w a i v e d ; ( i i ) t h e B a n k m a y g i v e w r i t t e n n o t i c e o f s u c h
E v e n t o f D e f a u l t a n d t e r m i n a t i o n o f t h e A g r e e m e n t ( a " N o t i c e o f T e r m i n a t i o n D a t e " ) t o t h e
T r u s t e e , t h e C o m m i s s i o n a n d t h e R e m a r k e t i n g A g e n t r e q u e s t i n g a D e f a u l t T e n d e r ; p r o v i d e d , t h a t
t h e o b l i g a t i o n o f t h e B a n k t o p u r c h a s e 2 0 0 9 S e r i e s A - 1 B o n d s s h a l l t e r m i n a t e o n t h e t h i r t i e t h
( 3 0 ` h ) d a y ( o r i f s u c h d a y i s n o t a B u s i n e s s D a y , t h e n e x t f o l l o w i n g B u s i n e s s D a y ) a f t e r s u c h
N o t i c e o f T e r m i n a t i o n D a t e i s r e c e i v e d b y t h e T r u s t e e a n d , o n s u c h d a t e , t h e A v a i l a b l e
C o m m i t m e n t s h a l l t e r m i n a t e a n d t h e B a n k s h a l l b e u n d e r n o o b l i g a t i o n h e r e u n d e r t o p u r c h a s e
2 0 0 9 S e r i e s A - 1 B o n d s ; ( i i i ) e x e r c i s e a n y r i g h t o r r e m e d y a v a i l a b l e t o i t u n d e r a n y o t h e r
p r o v i s i o n o f t h i s A g r e e m e n t ; o r ( i v ) e x e r c i s e a n y o t h e r r i g h t s o r r e m e d i e s a v a i l a b l e u n d e r t h e
I n d e n t u r e a n d a n y o t h e r R e l a t e d D o c u m e n t , a n y o t h e r a g r e e m e n t o r a t l a w o r i n e q u i t y ; p r o v i d e d ,
f u r t h e r , h o w e v e r , t h e B a n k s h a l l n o t h a v e t h e r i g h t t o t e r m i n a t e i t s o b l i g a t i o n t o p u r c h a s e 2 0 0 9
S e r i e s A - 1 B o n d s e x c e p t a s p r o v i d e d i n t h i s S e c t i o n 8 . 1 1 . N o t w i t h s t a n d i n g a n y t h i n g t o t h e
c o n t r a r y h e r e i n , n o f a i l u r e o r d e l a y b y t h e B a n k i n e x e r c i s i n g a n y r i g h t , p o w e r o r p r i v i l e g e
h e r e u n d e r , u n d e r t h e I n d e n t u r e a n d a n y o t h e r R e l a t e d D o c u m e n t o r u n d e r t h e 2 0 0 9 S e r i e s A - 1
B o n d s a n d n o c o u r s e o f d e a l i n g b e t w e e n t h e C o m m i s s i o n a n d t h e B a n k s h a l l o p e r a t e a s a w a i v e r
h e r e o f o r t h e r e o f n o r s h a l l a n y s i n g l e o r p a r t i a l e x e r c i s e h e r e o f o r t h e r e o f p r e c l u d e a n y o t h e r o r
f u r t h e r e x e r c i s e h e r e o f o r t h e r e o f o r t h e e x e r c i s e o f a n y o t h e r r i g h t , p o w e r o r p r i v i l e g e . T h e
r i g h t s a n d r e m e d i e s h e r e i n p r o v i d e d s h a l l b e c u m u l a t i v e a n d n o t e x c l u s i v e o f a n y r i g h t s o r
r e m e d i e s w h i c h t h e B a n k w o u l d o t h e r w i s e h a v e .
( d ) I n a d d i t i o n t o t h e f o r e g o i n g , u p o n t h e o c c u r r e n c e o f a n y E v e n t o f D e f a u l t
h e r e u n d e r , a l l O b l i g a t i o n s d u e a n d p a y a b l e h e r e u n d e r ( i n c l u d i n g a n y B a n k B o n d s ) s h a l l b e a r
i n t e r e s t a t t h e D e f a u l t R a t e .
A R T I C L E I X
O B L I G A T I O N S A B S O L U T E
S e c t i o n 9 . 1 . O b l i g a t i o n s A b s o l u t e .
T h e o b l i g a t i o n s o f t h e C o m m i s s i o n u n d e r t h i s A g r e e m e n t s h a l l b e a b s o l u t e , u n c o n d i t i o n a l
a n d i r r e v o c a b l e a n d s h a l l b e p a i d o r p e r f o r m e d s t r i c t l y i n a c c o r d a n c e w i t h t h e t e r m s o f t h i s
A g r e e m e n t , u n d e r a l l c i r c u m s t a n c e s w h a t s o e v e r , i n c l u d i n g , w i t h o u t l i m i t a t i o n , t h e f o l l o w i n g
c i r c u m s t a n c e s :
( a ) a n y l a c k o f v a l i d i t y o r e n f o r c e a b i l i t y o f t h i s A g r e e m e n t , t h e I n d e n t u r e o r
a n y o t h e r R e l a t e d D o c u m e n t o r a n y o t h e r a g r e e m e n t o r i n s t r u m e n t d e l i v e r e d i n c o n n e c t i o n
h e r e w i t h o r t h e r e w i t h ;
1 2 6 2 9 5 7 9 . 4
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(b) any amendment or waiver of, or any consent to departure from, the terms
of the Indenture or any other Related Document;
(c) the existence of any claim, set-off, defense or other right which the
Commission may have at any time against the Trustee, the Remarketing Agent, the Bank or any
other Person, whether in connection with this Agreement, the Indenture, any other Related
Document or any unrelated transaction; provided, however, that nothing, herein contained shall
prevent the assertion of such claim by separate suit;
(d) any statement or any other document presented other than by the Bank
under this Agreement, the Indenture or any of the other Related Documents proving to be forged,
fraudulent, invalid or insufficient in any respect or any statement therein being untrue or
inaccurate in any respect whatsoever;
(e) the purchase of a Bank Bond after the delivery of a Notice of Bank
Purchase that does not comply with the terms of this Agreement; or
(f) any other circumstances or happening whatsoever, whether or not similar
to any of the foregoing.
ARTICLE X
MISCELLANEOUS
Section 10.1. Liability of the Bank.
(a) With respect to the Bank, the Commission assumes all risks of the acts or
omissions of the Trustee, the Remarketing Agent and any of their agents in respect of their use of
this Agreement or any amounts made available by the Bank hereunder. To the extent permitted
by applicable law, neither the Bank nor any of it officers or directors shall be liable or
responsible for: (i) the use which may be made of this Agreement or any amounts made available
by the Bank hereunder or for any acts or omissions of the Trustee or Remarketing Agent or their
agents in connection therewith, (ii) the validity, sufficiency or genuineness of documents (other
than this Agreement), or of any endorsements thereon, even if such documents should in fact
prove to be in any or all respects invalid, insufficient, fraudulent or forged; (iii) any action,
inaction or omission which may be taken by the Bank in good faith without gross negligence in
connection with the Agreement; (iv) the validity, sufficiency or genuineness of documents (other
than this Agreement), or of any endorsements thereon, even if such documents should in fact
prove to be in any or all respects invalid, insufficient, fraudulent or forged; (v) payment by the
Bank against presentation of documents which do not comply with the terms of this Agreement,
including failure of any documents to bear any reference or adequate reference to this
Agreement; or (vi) any other circumstances whatsoever in making or failing to make payment
under this Agreement, except only that the Commission shall have a claim against the Bank and
the Bank shall be liable to the Commission to the extent, but only to the extent, of any direct, as
opposed to consequential, damages suffered by the Commission which the Commission proves
were caused by the Bank's gross negligence or willful failure to make payment under this
Agreement in accordance with the terms hereof. In furtherance and not in limitation of the
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f o r e g o i n g , t h e B a n k m a y a c c e p t d o c u m e n t s t h a t t h e B a n k i n g o o d f a i t h d e t e r m i n e s a p p e a r o n
t h e i r f a c e t o b e i n o r d e r , w i t h o u t r e s p o n s i b i l i t y f o r f u r t h e r i n v e s t i g a t i o n , r e g a r d l e s s o f a n y n o t i c e
o r i n f o r m a t i o n t o t h e c o n t r a r y .
( b ) T h e C o m m i s s i o n a s s u m e s a l l r i s k s a s s o c i a t e d w i t h t h e a c c e p t a n c e b y t h e
B a n k o f d o c u m e n t s r e c e i v e d b y t e l e c o m m u n i c a t i o n , i t b e i n g a g r e e d t h a t t h e u s e o f
t e l e c o m m u n i c a t i o n d e v i c e s i s f o r t h e b e n e f i t o f t h e C o m m i s s i o n a n d t h a t t h e B a n k a s s u m e s n o
l i a b i l i t i e s o r r i s k s w i t h r e s p e c t t h e r e t o .
S e c t i o n 1 0 . 2 . C o v e n a n t o f t h e B a n k .
T h e B a n k d u r i n g t h e t e r m o f t h i s A g r e e m e n t , s h a l l , u p o n t h e w r i t t e n r e q u e s t a n d a t t h e
e x p e n s e o f t h e C o m m i s s i o n , r e - c e r t i f y t h e a c c u r a c y o f t h e i n f o r m a t i o n r e l a t i n g t o t h e B a n k
p r e s e n t e d i n t h e O f f i c i a l S t a t e m e n t u n d e r h e a d i n g " T H E L I Q U I D I T Y F A C I L I T Y " a n d " T H E
L I Q U I D I T Y P R O V I D E R " ( t h e " B a n k I n f o r m a t i o n " ) ; p r o v i d e d , h o w e v e r , t h a t t h e B a n k s h a l l
h a v e n o o b l i g a t i o n t o u p d a t e t h e B a n k I n f o r m a t i o n , e x c e p t w h e n a n d a s s u c h i n f o r m a t i o n
m o d i f y i n g t h e B a n k I n f o r m a t i o n b e c o m e s a v a i l a b l e .
S e c t i o n 1 0 . 3 . C o s t s a n d T a x e s ; E x p e n s e s ; I n d e m n i f i c a t i o n .
( a ) T h e C o m m i s s i o n s h a l l p a y t o t h e B a n k ( i ) o n t h e E f f e c t i v e D a t e , a l l
r e a s o n a b l e c o s t s a n d e x p e n s e s a c t u a l l y i n c u r r e d b y t h e B a n k , t h e B a n k ' s o u t - o f - p o c k e t e x p e n s e s
( n o t t o e x c e e d $ 1 , 5 0 0 i n c o n n e c t i o n w i t h t h e 2 0 0 9 B o n d s ) , a n d t h e f e e s a n d d i s b u r s e m e n t s o f t h e
B a n k ' s c o u n s e l i n c o n n e c t i o n w i t h t h e p r e p a r a t i o n , e x e c u t i o n a n d d e l i v e r y o f t h i s A g r e e m e n t a n d
a n y o t h e r d o c u m e n t s a n d i n s t r u m e n t s t h a t m a y b e d e l i v e r e d i n c o n n e c t i o n t h e r e w i t h , p l u s t h e
r e a s o n a b l e o u t - o f - p o c k e t e x p e n s e s o f c o u n s e l t o t h e B a n k ( s a i d f e e s n o t e x c e e d [ $ ] i n
c o n n e c t i o n w i t h t h e 2 0 0 9 B o n d s ) ) , ( i i ) t o t h e e x t e n t p e r m i t t e d b y S t a t e l a w , a l l c o s t s a n d
e x p e n s e s i n c u r r e d b y t h e B a n k , i n c l u d i n g r e a s o n a b l e f e e s a n d o u t - o f - p o c k e t e x p e n s e s o f c o u n s e l
f o r t h e B a n k , o t h e r w i s e a r i s i n g i n c o n n e c t i o n w i t h t h i s A g r e e m e n t a n d t h e R e l a t e d D o c u m e n t s ,
i n c l u d i n g , w i t h o u t l i m i t a t i o n , i n c o n n e c t i o n w i t h a n y a m e n d m e n t h e r e t o o r t h e r e t o , t h e
e n f o r c e m e n t h e r e o f o r t h e r e o f o r t h e p r o t e c t i o n o f t h e r i g h t s o f t h e B a n k h e r e u n d e r o r t h e r e u n d e r ,
a n d ( i i i ) t o t h e e x t e n t p e r m i t t e d b y S t a t e l a w , a n y a n d a l l s t a m p , e x c i s e o r o t h e r s i m i l a r t a x a n d
a n y p e n a l t i e s o r i n t e r e s t w i t h r e s p e c t t h e r e t o , w h i c h m a y b e a s s e s s e d , l e v i e d o r c o l l e c t e d b y a n y
j u r i s d i c t i o n i n c o n n e c t i o n w i t h t h e e x e c u t i o n , d e l i v e r y a n d p e r f o r m a n c e o f , o r a n y p a y m e n t m a d e
u n d e r , t h i s A g r e e m e n t a n d a n y o t h e r d o c u m e n t s o r i n s t r u m e n t s t h a t m a y b e d e l i v e r e d i n
c o n n e c t i o n h e r e w i t h .
( b ) T o t h e e x t e n t p e r m i t t e d b y a p p l i c a b l e l a w , t h e C o m m i s s i o n h e r e b y
i n d e m n i f i e s a n d h o l d s h a r m l e s s t h e B a n k a n d i t s r e s p e c t i v e o f f i c e r s , d i r e c t o r s , e m p l o y e e s a n d
a g e n t s ( e a c h , a n " I n d e m n i f i e d P a r t y " ) f r o m a n d a g a i n s t a n y a n d a l l c l a i m s , d a m a g e s , l o s s e s ,
l i a b i l i t i e s , c o s t s o r e x p e n s e s w h a t s o e v e r w h i c h a n y I n d e m n i f i e d P a r t y m a y i n c u r ( o r w h i c h m a y
b e c l a i m e d a g a i n s t t h e I n d e m n i f i e d P a r t y b y a n y p e r s o n o r e n t i t y w h a t s o e v e r ) b y r e a s o n o f o r i n
c o n n e c t i o n w i t h t h e o f f e r i n g a n d s a l e o f t h e 2 0 0 9 S e r i e s A - 1 B o n d s ( i n c l u d i n g , w i t h o u t
l i m i t a t i o n , b y r e a s o n o f a n y i n a c c u r a c y i n a n y m a t e r i a l r e s p e c t , o r a n y u n t r u e s t a t e m e n t o r
a l l e g e d u n t r u e s t a t e m e n t o f a n y m a t e r i a l f a c t , c o n t a i n e d i n t h e O f f i c i a l S t a t e m e n t o r a n y
a m e n d m e n t o r s u p p l e m e n t t h e r e t o , o r b y r e a s o n o f t h e o m i s s i o n o r a l l e g e d o m i s s i o n t o s t a t e
t h e r e i n a m a t e r i a l f a c t n e c e s s a r y t o m a k e s u c h s t a t e m e n t s , i n l i g h t o f t h e c i r c u m s t a n c e s u n d e r
1 2 6 2 9 5 7 9 . 4
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which they were made, not misleading), the execution and delivery of this Agreement by the
Commission and the Bank or payment or failure to pay under this Agreement by the Bank or any
other aspect of the transactions contemplated by this Agreement or any of the other Related
Documents; provided, however, that the Commission shall not be required to indemnify any
Indemnified Party for any claims, damages, losses, liabilities, costs or expenses (i) to the extent,
but only to the extent, caused by the willful misconduct or gross negligence of the Indemnified
Party or its respective officers, directors, employees or agents or (ii) with respect to the Bank
Information.
(c) To the extent permitted by applicable law and notwithstanding paragraph
(b) above, unless there is an actual or potential conflict with respect to the legal defenses
available to the Commission and an Indemnified Party, the Commission may discharge its
obligation hereunder by diligently defending the Indemnified Parties. Each Indemnified Party
will promptly notify the Commission upon becoming aware of any claims or liabilities giving
rise to a right to indemnification hereunder and will cooperate with the Commission in the
defense of such claims or liabilities. Notwithstanding the provisions of this subsection (c), the
Bank shall have the right to employ its own counsel and to determine its own defense of such
action in any such case, but the fees and expenses of such counsel shall be at the expense of the
Bank unless (i) the employment of such counsel shall have been authorized in writing by the
Commission or (ii) the Commission, after due notice of the action, shall have failed to employ
counsel to take charge of such defense, in either of which events, the reasonable fees and
expenses of counsel for the Bank shall be borne by the Commission. The Commission shall not
be liable for any settlement of any such action effected without its consent.
(d) Subject to applicable law, nothing in this Section 10.3 is intended to limit
any other obligations of the Commission contained in Articles II and III hereof and the
obligations of the Commission under this Section 10.3 shall be in addition to any and all rights of
reimbursement, indemnification, subrogation or any other rights pursuant hereto or under law or
equity.
(e) The provisions of this Section 10.3 shall survive the termination of this
Agreement.
Section 10.4. Notices.
Unless otherwise specified herein, all notices, requests, demands or other
communications to or upon the respective parties hereto or referred to herein shall be deemed to
have been given (a) in the case of notice by letter, when delivered by hand or four (4) days after
the same is deposited in the mails, first-class postage prepaid, and (b) in the case of notice by
telecopier, when sent, receipt confirmed, addressed to them as follows or at such other address as
any of the parties hereto may designate by written notice to the other parties hereto and to the
Remarketing Agent:
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C o m m i s s i o n :
R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n
P . O . B o x 1 2 0 0 8
R i v e r s i d e , C A 9 2 5 0 2
[ T e l : 9 5 1 - 7 8 7 - 7 9 2 6
F a x : 9 5 1 - 7 8 7 - 7 9 2 0 ]
B a n k : F o r i m p o s e s o f N o t i c e s o f B a n k P u r c h a s e , b i l l i n g
a n d p a y m e n t :
J P M o r g a n C h a s e B a n k , N a t i o n a l A s s o c i a t i o n
2 7 0 P a r k A v e n u e , 6 t h F l o o r
M a i l C o d e N Y 1 - K 9 3 4
N e w Y o r k , N e w Y o r k 1 0 0 1 7 ]
[ T e l :
F a x : ]
F o r a l l o t h e r p u r p o s e s :
3 8 3 M a d i s o n A v e n u e , 8 t h F l o o r
M a i l C o d e [
N e w Y o r k , N e w Y o r k 1 0 0 1 7 ]
A t t e n t i o n : T a x - E x e m p t C a p i t a l M a r k e t s - -
C r e d i t O r i g i n a t i o n
[ T e l :
F a x :
R e m a r k e t i n g A g e n t : [ T E X T T O C O M E ]
T r u s t e e :
U . S . B a n k N a t i o n a l A s s o c i a t i o n
6 3 3 W e s t F i f t h S t r e e t , 2 4 h F l o o r
L o s A n g e l e s , C A 9 0 0 7 1
[ T e l : 2 1 3 - 6 1 5 - 6 0 0 2
F a x : 2 1 3 - 6 1 5 - 6 1 9 9 ]
S e c t i o n 1 0 . 5 . S u c c e s s o r s , P a r t i c i p a n t s a n d A s s i g n s .
( a ) T h i s A g r e e m e n t s h a l l b e b i n d i n g u p o n a n d i n u r e t o t h e b e n e f i t o f t h e
C o m m i s s i o n a n d t h e B a n k a n d t h e i r r e s p e c t i v e s u c c e s s o r s , e n d o r s e e s a n d a s s i g n s , e x c e p t t h a t ( i )
t h e C o m m i s s i o n m a y n o t a s s i g n o r t r a n s f e r i t s r i g h t s o r o b l i g a t i o n s h e r e u n d e r w i t h o u t t h e p r i o r
w r i t t e n c o n s e n t o f t h e B a n k ; p r o v i d e d , h o w e v e r , t h a t i f a n d t o t h e e x t e n t t h e r i g h t s a n d
o b l i g a t i o n s o f t h e C o m m i s s i o n h e r e u n d e r a r e a s s i g n e d o r t r a n s f e r r e d t o a s u c c e s s o r e n t i t y
p u r s u a n t t o S t a t e l e g i s l a t i o n , a n d s u c h a s s i g n e e o r t r a n s f e r e e a s s u m e s s a i d r i g h t s a n d o b l i g a t i o n s
i n a w r i t t e n n o t i c e t o t h e B a n k , t h e c o n s e n t o f t h e B a n k h e r e u n d e r w i l l n o t b e r e q u i r e d ; a n d ( i i )
1 2 6 2 9 5 7 9 . 4
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the Bank may not assign or transfer its rights or obligations hereunder without obtaining written
notice from Standard & Poor's, if the 2009 Series A -I Bonds are rated by Standard & Poor's,
Moody's, if the 2009 Series A-1 Bonds are rated by Moody's[, and Fitch, if the 2009 Series A-1
Bonds are rated by Fitch] that such assignment will not result in a suspension, lowering or
withdrawal of the rating on the 2009 Series A-1 Bonds. The Bank may grant a participation to
any financial institution in all or any part of, or any interest (undivided or divided) in, the Bank's
rights and benefits under this Agreement and any 2009 Series A-1 Bonds owned by it, and to the
extent of that participation such Participant shall, except as set forth in the following clause (b),
have the same rights and benefits against the Commission hereunder as it would have had if such
Participant were the Bank hereunder; provided, that (a) no such participation shall affect the
obligations of the Bank to purchase 2009 Series A-1 Bonds as herein provided; (b) the
Commission shall be required to deal only with the Bank with respect to any matters under this
Agreement and no such Participant shall be entitled to enforce directly against the Commission
any provision hereunder; and (c) such Participant shall not be any Person registered as an
investment company under the Investment Company Act of 1940, as amended, substantially all
of the assets of which are invested in obligations exempt from federal income taxation under
Section 103 or 103A of the Code or any similar or successor provision. The obligations of the
Bank under this Agreement or any part hereof may be assigned by the Bank to any financial
institution only with the prior written consent of the Commission.
(b) The Bank may assign and pledge all or any portion of the obligations
owing to it to any Federal Reserve Bank or the United States Treasury as collateral security
pursuant to Regulation A of the Board of Governors of the Federal Reserve System and any
Operation Circular issued by such Federal Reserve Bank; provided, that any payment in respect
of such assigned obligations made by the Commission to the Bank in accordance with the terms
of this Agreement shall satisfy the Commission's obligations hereunder in respect of such
assigned obligation to the extent of such payment. No such assignment shall release the Bank
from its obligations hereunder.
Section 10.6. Governing Law; Waiver of Trial by Jury; Miscellaneous.
(a) THIS AGREEMENT SHALL BE DEEMED TO BE A CONTRACT
UNDER, AND FOR ALL PURPOSES SHALL BE GOVERNED BY, AND CONSTRUED
AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK; PROVIDED, HOWEVER, THAT THE AUTHORIZATION OF THIS AGREEMENT
AND THE OBLIGATIONS OF THE AUTHORITY HEREUNDER SHALL BE GOVERNED
BY THE LAWS OF THE STATE OF CALIFORNIA.
(b) SUBJECT TO APPLICABLE LAW, THE PARTIES HERETO HEREBY
IRREVOCABLY AGREE TO WAIVE TRIAL BY JURY.
Section 10.7. No Waivers, Amendments, Etc.
No provision of this Agreement shall be waived, amended or supplemented except by a
written instrument executed by the parties hereto. This Agreement may not be amended or
modified without the prior written consent of each party hereto and the Commission agrees to
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u s e i t s b e s t e f f o r t s t o d e l i v e r t o t h e T r u s t e e a n d e a c h R a t i n g A g e n c y a c o p y o f a n y a m e n d m e n t t o
t h i s A g r e e m e n t .
S e c t i o n 1 0 . 8 . C o u n t e r p a r t s .
T h i s A g r e e m e n t m a y b e e x e c u t e d i n s e v e r a l c o u n t e r p a r t s , e a c h o f w h i c h s h a l l b e a n
o r i g i n a l a n d a l l o f w h i c h s h a l l c o n s t i t u t e b u t o n e a n d t h e s a m e i n s t r u m e n t .
S e c t i o n 1 0 . 9 . S o u r c e o f F u n d s .
T h e B a n k a g r e e s t h a t a l l f u n d s p r o v i d e d b y t h e B a n k h e r e u n d e r w i l l b e p a i d f r o m f u n d s
o f t h e B a n k a n d n o t d i r e c t l y o r i n d i r e c t l y f r o m f u n d s o r c o l l a t e r a l o n d e p o s i t w i t h o r f o r t h e
a c c o u n t o f , o r p l e d g e d w i t h o r f o r t h e a c c o u n t o f , t h e B a n k b y t h e C o m m i s s i o n .
S e c t i o n 1 0 . 1 0 . T e r m o f t h e A g r e e m e n t ; S u r v i v a l .
( a ) T e r m . T h e t e r m o f t h i s A g r e e m e n t s h a l l b e u n t i l t h e l a t e r o f ( x ) t h e l a s t
d a y o f t h e C o m m i t m e n t P e r i o d a n d ( y ) t h e p a y m e n t i n f u l l o f t h e p r i n c i p a l o f a n d i n t e r e s t o n a l l
B a n k B o n d s a n d a l l O b l i g a t i o n s d u e h e r e u n d e r .
( b ) E x t e n s i o n o f T e r m . U p o n t h e w r i t t e n r e q u e s t o f t h e C o m m i s s i o n r e c e i v e d
b y t h e B a n k n o e a r l i e r t h a n n i n e t y ( 9 0 ) d a y s p r i o r t o t h e E x p i r a t i o n D a t e t h e n i n e f f e c t , o r s u c h
o t h e r d a t e t o w h i c h t h e B a n k m a y c o n s e n t i n w r i t i n g , t h e B a n k s h a l l w i t h i n t h i r t y ( 3 0 ) d a y s a f t e r
i t s r e c e i p t o f s u c h r e q u e s t n o t i f y t h e C o m m i s s i o n , t h e T r u s t e e a n d t h e R e m a r k e t i n g A g e n t
w h e t h e r o r n o t i t w i l l e x t e n d t h e c u r r e n t E x p i r a t i o n D a t e . A n y e x t e n s i o n s h a l l b e a t t h e s o l e a n d
a b s o l u t e d i s c r e t i o n o f t h e B a n k . I f t h e B a n k f a i l s t o n o t i f y t h e C o m m i s s i o n o f i t s d e c i s i o n w i t h i n
s u c h 3 0 - d a y p e r i o d , t h e B a n k s h a l l b e d e e m e d t o h a v e r e j e c t e d s u c h r e q u e s t . A n y s u c h r e q u e s t
b y t h e C o m m i s s i o n f o r a n e x t e n s i o n o f t h e E x p i r a t i o n D a t e s h a l l b e s u b s t a n t i a l l y i n t h e f o r m o f
E x h i b i t C h e r e t o ( o r i n s u c h o t h e r f o r m t o w h i c h t h e B a n k m a y c o n s e n t i n w r i t i n g ) a n d , u n l e s s
t h e B a n k s h a l l o t h e r w i s e c o n s e n t , s h a l l i n c l u d e ( i ) a s t a t e m e n t o f t h e o u t s t a n d i n g p r i n c i p a l
a m o u n t o f t h e 2 0 0 9 S e r i e s A - 1 B o n d s , ( i i ) a r e a s o n a b l y d e t a i l e d d e s c r i p t i o n o f a n y a n d a l l E v e n t s
o f D e f a u l t a n d a l l c o n d i t i o n s , e v e n t s a n d a c t s w h i c h w i t h n o t i c e o r l a p s e o f t i m e o r b o t h w o u l d
b e c o m e a n E v e n t o f D e f a u l t , a n d ( i i i ) a n y o t h e r p e r t i n e n t i n f o r m a t i o n r e q u e s t e d b y t h e B a n k .
( c ) S u r v i v a l o f O b l i g a t i o n s . T h e o b l i g a t i o n s o f t h e C o m m i s s i o n u n d e r
S e c t i o n s 2 . 2 , 2 . 7 , 2 . 8 , 2 . 9 , 3 . 1 a n d 1 0 . 3 h e r e o f , i n c l u d i n g a l l O b l i g a t i o n s s e t f o r t h h e r e i n , s h a l l
s u r v i v e t h e t e r m i n a t i o n o f t h e A v a i l a b l e C o m m i t m e n t .
S e c t i o n 1 0 . 1 1 . H e a d i n g s .
S e c t i o n h e a d i n g s i n t h i s A g r e e m e n t a r e i n c l u d e d h e r e i n f o r c o n v e n i e n c e o f r e f e r e n c e o n l y
a n d s h a l l n o t h a v e a n y e f f e c t f o r p u r p o s e s o f i n t e r p r e t a t i o n o r c o n s t r u c t i o n o f t h e t e r m s o f t h i s
A g r e e m e n t .
1 2 6 2 9 5 7 9 . 4
- 5 1 -
2 2 4
Section 10.12. Complete and Controlling Agreement.
This Agreement, the Indenture and the other Related Documents completely set forth the
agreements between the Bank and the Commission and supersede all prior agreements, both
written and oral, between the Bank and the Commission relating to the matters set forth herein.
Section 10.13. Beneficiaries.
This Agreement is made solely for the benefit of the Commission, the Trustee and the
Bank, their successors and assigns, and no other Person (including, without limitation, any
owners of the 2009 Series A-1 Bonds) shall have any right, benefit or interest under or because
of the existence of this Agreement.
Section 10.14. Severability.
If any provision of this Agreement shall be held or deemed to be or shall in fact be
illegal, inoperative or unenforceable, the same shall not affect any other provision or provisions
herein contained or render the same invalid, inoperative or unenforceable to any extent whatever.
Section 10.15. Patriot Act.
The Bank hereby notifies the Commission that pursuant to the requirements of the USA
Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the "Patriot Act'), it
is required to obtain, verify and record information that includes the name and address of the
Commission and other information that will allow the Bank to identify the Commission in
accordance with the Patriot Act.
12629579.4
Remainder of page intentionally left blank; signature page to follow.
-52-
•
225
"
I N W I T N E S S W H E R E O F , t h e p a r t i e s h e r e t o h a v e c a u s e d t h i s A g r e e m e n t t o b e d u l y
e x e c u t e d a n d d e l i v e r e d b y t h e i r r e s p e c t i v e o f f i c e r s t h e r e u n t o d u l y a u t h o r i z e d a s o f t h e E f f e c t i v e
D a t e .
1 2 4 5 7 3 1 1
R I V E R S I D E C O U N T Y T R A N S P O R T A T I O N
C O M M I S S I O N
B y :
N a m e :
T i t l e :
J P M O R G A N C H A S E B A N K , N A T I O N A L
A S S O C I A T I O N
B y :
N a m e :
T i t l e :
2 2 6
EXHIBIT A
NOTICE OF BANK PURCHASE
(Optional Tender)
The undersigned, a duly authorized officer of U.S. Bank National Association, as Trustee
(the "Trustee'), hereby certifies to JPMorgan Chase Bank, National Association (the `Bank"),
in accordance with the Amended and Restated Standby Bond Purchase Agreement (the "Standby
Purchase Agreement') dated as of [ ], 2009, by and between Riverside County
Transportation Commission and the Bank (all capitalized terms herein having the meanings
ascribed thereto in the Standby Purchase Agreement), that:
1. Notice of a tender of Eligible Bonds for purchase having a Purchase Price
of $ , pursuant to Section 22.04 of the Second Supplemental Indenture, has
been received of which $ constitutes principal and $ constitutes
accrued interest.
2. Amounts available for the payment of the Purchase Price of such Eligible
Bonds is $ , of which $ is available to pay principal and of which
$ is available to pay accrued interest.
3. The total principal amount requested hereby for the payment of the
principal portion of the Purchase Price of Eligible Bonds is $ which amount
does not exceed the Available Principal Commitment or the principal amount referred to
in paragraph 1 above minus the principal amount referred to in 2 above.
4. The total amount requested hereby to pay the portion of the Purchase Price
for Eligible Bonds constituting accrued interest is $ , which amount does not
exceed the Available Interest Commitment or the amount of interest referred to in
paragraph 1 above minus the amount of interest referred to in paragraph 2 above.
5. Eligible Bonds referred to above having a Purchase Price of $
[the amount in paragraph 3 plus the amount in paragraph 4] are hereby tendered to the
Bank for purchase pursuant to the Standby Purchase Agreement on the date hereof.
6. Upon completion of purchase, the Trustee will [register such 2009 Series
A-1 Bonds, or if a 2009 Series A-1 Bond for which notice of tender for purchase pursuant
to the Indenture has been given is not delivered, a new 2009 Series A-1 Bond issued in
replacement of the undelivered 2009 Series A-1 Bond, in the name of the Bank or if
directed in writing by the Bank its nominee or designee on the Bond Register] [in the
case of Book Entry Bonds, cooperate with the Bank and DTC to the extent necessary to
ensure that the beneficial ownership of such 2009 Series A -I Bonds shall be credited to
the account of the Bank or if directed in writing by the Bank its nominee or designee with
DTC] [,and will hold such 2009 Series A-1 Bonds in trust for the benefit of the Bank].
12629579.4
The Purchase Date is , 20 .
A-1
227
8. The Purchase Price for such Eligible Bonds is to be paid to the Trustee as
follows:
[insert wire transfer instructions]
9. To the best of the Trustee's knowledge, no Special Event of Default or
Suspension Event has occurred and is continuing on the date hereof.
IN WITNESS WHEREOF, the Trustee has executed and delivered this Certificate as of
the _ day of , 20 .
12629579.4
U.S. BANK NATIONAL ASSOCIATION,
as Trustee
By:
Name:
Title:
A-2
228
8. The Purchase Price for such 2009 Series A-1 Bonds is to be paid to the
Trustee as follows:
[insert wire transfer instructions]
9. To the best of the Trustee's knowledge, no Special Event of Default or
Suspension Event has occurred and is continuing on the date hereof.
IN WITNESS WHEREOF, the Trustee has executed and delivered this Certificate as of
day of , 20 .
12629579.4
U.S. BANK NATIONAL ASSOCIATION,
as Trustee
By:
Name:
Title:
B-2
i
230
"
"
E X H I B I T C
F O R M O F R E Q U E S T F O R E X T E N S I O N O F E X P I R A T I O N D A T E
[ D a t e ]
J P M o r g a n C h a s e B a n k , N a t i o n a l A s s o c i a t i o n
2 7 0 P a r k A v e n u e , [ ] F l o o r
N e w Y o r k , N e w Y o r k 1 0 0 1 7
A t t e n t i o n :
1
R e : R e q u e s t f o r E x t e n s i o n o f E x p i r a t i o n D a t e
L a d i e s / G e n t l e m e n :
R e f e r e n c e i s h e r e b y m a d e t o t h a t c e r t a i n A m e n d e d a n d R e s t a t e d S t a n d b y B o n d P u r c h a s e
A g r e e m e n t , d a t e d a s o f [ ] , 2 0 0 9 ( t h e " A g r e e m e n t ' ) , b y a n d b e t w e e n R i v e r s i d e C o u n t y
T r a n s p o r t a t i o n C o m m i s s i o n ( t h e " C o m m i s s i o n " ) a n d J P M o r g a n C h a s e B a n k , N a t i o n a l
A s s o c i a t i o n ( t h e " B a n k " ) . A l l c a p i t a l i z e d t e r m s c o n t a i n e d h e r e i n w h i c h a r e n o t s p e c i f i c a l l y
d e f i n e d s h a l l b e d e e m e d t o h a v e t h e d e f i n i t i o n s s e t f o r t h i n t h e A g r e e m e n t . T h e C o m m i s s i o n
h e r e b y r e q u e s t s , p u r s u a n t t o S e c t i o n 1 0 . 1 0 ( b ) o f t h e A g r e e m e n t , t h a t t h e E x p i r a t i o n D a t e f o r t h e
C o m m i t m e n t P e r i o d b e e x t e n d e d b y [ ] d a y s / [ ] y e a r [ s ] . P u r s u a n t t o S e c t i o n 1 0 . 1 0 ( b ) o f
t h e A g r e e m e n t , w e h a v e e n c l o s e d a l o n g w i t h t h i s r e q u e s t t h e f o l l o w i n g i n f o r m a t i o n :
1 . T h e o u t s t a n d i n g p r i n c i p a l a m o u n t o f t h e 2 0 0 9 S e r i e s A - 1 B o n d s ;
2 . T h e n a t u r e o f a n y a n d a l l E v e n t s o f D e f a u l t a n d a l l c o n d i t i o n s , e v e n t s a n d
a c t s w h i c h w i t h n o t i c e o r l a p s e o f t i m e o r b o t h w o u l d b e c o m e a n E v e n t o f
D e f a u l t ; a n d
3 . A n y o t h e r p e r t i n e n t i n f o r m a t i o n p r e v i o u s l y r e q u e s t e d b y t h e B a n k :
T h e B a n k i s r e q u i r e d t o n o t i f y t h e C o m m i s s i o n , t h e T r u s t e e a n d t h e R e m a r k e t i n g A g e n t
o f i t s d e c i s i o n w i t h r e s p e c t t o t h i s r e q u e s t f o r e x t e n s i o n w i t h i n t h i r t y ( 3 0 ) d a y s o f t h e d a t e o f
r e c e i p t h e r e o f . I f t h e B a n k f a i l s t o n o t i f y t h e C o m m i s s i o n o f i t s d e c i s i o n w i t h i n s u c h 3 0 d a y
p e r i o d , t h e B a n k s h a l l b e d e e m e d t o h a v e r e j e c t e d s u c h r e q u e s t .
1 2 6 2 9 5 7 9 . 4
V e r y t r u l y y o u r s ,
R I V E R S I D E C O U N T Y T R A N S P O R T A T I O N
C O M M I S S I O N
B y :
N a m e :
T i t l e :
C - 1
2 3 1
EXHIBIT D
FORM OF LETTER FROM TRUSTEE
[Date]
JPMorgan Chase Bank, National Association
270 Park Avenue, [ ] Floor
New York, New York 10017
Attention:
Re: DTC and Book Entry
Ladies/Gentlemen:
Reference is hereby made to that certain Amended and Restated Standby Bond Purchase
Agreement, dated as of [ ], 2009 (the "Agreement"), by and between Riverside County
Transportation Commission (the "Commission") and JPMorgan Chase Bank, National
Association (the "Bank"). All capitalized terms contained herein which are not specifically
defined shall be deemed to have the definitions set forth in the Agreement.
Pursuant to Article IV, subparagraph (n) of the Agreement, the undersigned, a duly
authorized officer of U.S. Bank National Association, as Trustee (the "Trustee') hereby agrees
as follows:
1. The Trustee agrees to act as the agent of the Bank as owner of any Bank Bonds
and agreeing to dispose of, and accept instructions with respect to, Bank Bonds only as directed
by the Bank.
2. The Trustee agrees that so long as the 2009 Serics A-1 Bonds are issued in book -
entry form and held by the Trustee as custodian of DTC as part of DTC's fast automated transfer
program ("FAST Eligible Bond"), concurrently with the Trustee's receipt of the purchase price
for each purchase of 2009 Series A-1 Bonds by the Bank hereunder, the Trustee, as a participant
of DTC (or any other successor securities depository) or an eligible transfer agent, shall (A)
credit the DTC account designated by the Bank as its account in which to hold Bank Bonds
purchased by it (each, the "Bank Book -Entry Account") by the principal amount of the 2009
Series A-1 Bonds purchased under the Agreement by the Bank using the Bank Bond CUSIP
number for such 2009 Series A-1 Bonds set forth below; and (B) debit the book -entry account of
DTC for the 2009 Series A-1 Bonds (thereby reducing the principal balance of the global
certificate representing the 2009 Series A-1 Bonds) (the "DTC Book -Entry Account") by the
principal amount of the 2009 Series A -I Bonds purchased hereunder by the Bank.
3. The CUSIP number for Bonds that are Bank Bonds is
4. So long as the 2009 Series A-1 Bonds are FAST Eligible Bonds, upon a
remarketing of Bank Bonds in accordance with the terms of the Agreement and the Trustee's
receipt from the Remarketing Agent and/or the Commission of the amounts set forth in Section
12629579 4
D- I
232
"
2 . 3 ( a ) o f t h e A g r e e m e n t , t h e T r u s t e e , a s a p a r t i c i p a n t o f D T C ( o r a n y o t h e r s u c c e s s o r s e c u r i t i e s
d e p o s i t o r y ) o r a n e l i g i b l e t r a n s f e r a g e n t , s h a l l ( A ) d e b i t t h e B a n k B o o k - E n t r y A c c o u n t o f t h e
B a n k b y t h e p r i n c i p a l a m o u n t o f t h e 2 0 0 9 S e r i e s A - I B o n d s s o r e m a r k e t e d ; a n d ( B ) c r e d i t t h e
D T C B o o k - E n t r y A c c o u n t f o r s u c h 2 0 0 9 S e r i e s A - 1 B o n d s ( t h e r e b y i n c r e a s i n g t h e p r i n c i p a l
b a l a n c e o f t h e g l o b a l c e r t i f i c a t e r e p r e s e n t i n g s u c h 2 0 0 9 S e r i e s A - 1 B o n d s ) b y t h e p r i n c i p a l
a m o u n t o f t h e 2 0 0 9 S e r i e s A - 1 B o n d s s o r e m a r k e t e d .
5 . T h e T r u s t e e a l s o h e r e b y a c k n o w l e d g e s t h a t i t i s f a m i l i a r w i t h , a n d i n c o m p l i a n c e
w i t h , t h e p r o c e d u r e s a n d r e q u i r e m e n t s s e t f o r t h i n a n o t i c e ( t h e " D T G V R D O N o t i c e " ) f r o m
D T C , d a t e d A p r i l 4 , 2 0 0 8 , r e s p e c t i n g " V a r i a b l e R a t e D e m a n d O b l i g a t i o n s ( " V R D O " ) F a i l e d
R e m a r k e t i n g s a n d I s s u a n c e o f B a n k B o n d s " , a s a m e n d e d b y D T C N o t i c e n u m b e r B 3 4 8 8 - 0 8
d a t e d M a y 1 5 , 2 0 0 8 , a n d a g r e e s t h a t , w i t h r e s p e c t t o a n y a n d a l l B a n k B o n d s , i t w i l l f o l l o w t h e
p r o c e d u r e s a n d r e q u i r e m e n t s s e t f o r t h i n t h e D T C - V R D O N o t i c e , a s t h e s a m e m a y b e a m e n d e d
f r o m t i m e t o t i m e .
6 . T h e T r u s t e e a g r e e s t h a t , f o l l o w i n g a n y a m e n d m e n t o f t h e D T C - V R D O N o t i c e ,
s h o u l d t h e p r o c e d u r e s a n d r e q u i r e m e n t s t h e r e i n b e c o m e i n c o n s i s t e n t w i t h a n y a s p e c t o f t h e
p r o v i s i o n s o f t h e I n d e n t u r e , t h e T r u s t e e s h a l l p r o m p t l y n e g o t i a t e i n g o o d f a i t h a n d c o n s e n t t o
a m e n d m e n t s a s n e c e s s a r y t o e l i m i n a t e s u c h i n c o n s i s t e n c y .
1 2 6 2 9 5 7 9 . 4
V e r y t r u l y y o u r s ,
U . S . B A N K N A T I O N A L A S S O C I A T I O N , s o l e l y
i n i t s c a p a c i t y a s T r u s t e e a n d n o t i n i t s i n d i v i d u a l
c a p a c i t y
B y :
N a m e :
T i t l e :
D - 2
2 3 3
"
"
"
S C H E D U L E
L e v e l
C o m m i s s i o n B o n d R a t i n g *
C o m m i t m e n t F e e
M o o d y ' s
F i t c h / S & P
I
A a l o r
b e t t e r
A A + o r
b e t t e r
1 2 5 b p p a
I I
A a 2
A A
1 2 5 b p p a
I I I
A a 3
A A -
1 4 5 b p p a
I V
A I
A +
1 6 5 b p p a
V
A 2
A
1 8 5 b p p a
V I
A 3
A -
2 0 5 b p p a
V I I
B a a l
B B B +
2 2 5 b p p a
V I I I
B a a 2
B B B
2 4 5 b p p a
I X
B a a 3
B B B -
2 6 5 b p p a
X
B e l o w B a a 3
B e l o w B B B -
2 8 5 b p p a
T h e " C o m m i t m e n t F e e " f o r a n y d a t e s h a l l b e d e t e r m i n e d b y r e f e r e n c e t o t h e C o m m i s s i o n B o n d
R a t i n g s f o r s u c h d a t e .
A ) I m p r o v e m e n t s / D o w n g r a d e s o f C o m m i s s i o n B o n d R a t i n g .
I f t h e C o m m i s s i o n B o n d R a t i n g s a s s i g n e d b y a l l o f t h e R a t i n g A g e n c i e s , o r b y t w o o f t h e t h r e e
R a t i n g A g e n c i e s , a r e a t t h e s a m e l e v e l , t h e C o m m i t m e n t F e e w i l l b e b a s e d o n t h e l e v e l a t w h i c h
a l l o f t h e R a t i n g A g e n c i e s , o r t w o o f t h e t h r e e R a t i n g A g e n c i e s , i f a p p l i c a b l e , h a v e a s s i g n e d t h e i r
r e s p e c t i v e C o m m i s s i o n B o n d R a t i n g ( s ) . F o r e x a m p l e , i f F i t c h a s s i g n s a n " A A " r a t i n g , M o o d y ' s
a s s i g n s a n " A a 2 " r a t i n g a n d S & P a s s i g n s a n " A A + " r a t i n g , t h e C o m m i t m e n t F e e w i l l b e
d e t e r m i n e d i n a c c o r d a n c e w i t h l e v e l I I .
I f t h e C o m m i s s i o n B o n d R a t i n g s a s s i g n e d b y e a c h o f t h e R a t i n g A g e n c i e s i s a t a d i f f e r e n t l e v e l ,
t h e C o m m i t m e n t F e e w i l l b e b a s e d o n t h e r a t i n g a s s i g n e d t o t h e l e v e l i n t h e m i d d l e o f t h e t h r e e
r a t i n g l e v e l s . F o r e x a m p l e , i f F i t c h a s s i g n s a n " A A " r a t i n g , M o o d y ' s a s s i g n s a n " A a 3 " r a t i n g
a n d S & P a s s i g n s a n " A A + " r a t i n g , t h e C o m m i t m e n t F e e w i l l b e d e t e r m i n e d i n a c c o r d a n c e w i t h
l e v e l I I . H o w e v e r , i f F i t c h a s s i g n s a n " A A - " r a t i n g , M o o d y ' s a s s i g n s a n " A 2 " r a t i n g a n d S & P
a s s i g n s a n " A A " r a t i n g , t h e C o m m i t m e n t F e e w i l l b e d e t e r m i n e d i n a c c o r d a n c e w i t h l e v e l I I I .
T h e c h a n g e i n t h e C o m m i t m e n t F e e w i l l b e i n c r e a s e d o r r e d u c e d , a s a p p l i c a b l e , o n s u c h d a t e t h a t
t h e R a t i n g A g e n c y o r R a t i n g A g e n c i e s i n q u e s t i o n s h a l l h a v e p u b l i c l y a n n o u n c e d i t s / t h e i r
i m p r o v e m e n t / d o w n g r a d e o f i t s / t h e i r C o m m i s s i o n B o n d R a t i n g ( s ) w h i c h
i m p r o v e m e n t / d o w n g r a d e a f f e c t s t h e l e v e l o r l e v e l s d e s c r i b e d a b o v e .
' " C o m m i s s i o n B o n d R a t i n g " s h a l l m e a n t h e l o n g - t e r m r a t i n g ( w i t h o u t r e g a r d f o r a n y b o n d i n s u r a n c e o r a n y
o t h e r f o r m o f c r e d i t e n h a n c e m e n t b y a t h i r d - p a r t y p r o v i d e r ) a s s i g n e d t o t h e S e r i e s 2 0 0 9 S e r i e s A - 1 B o n d s o r a n y
P a r i t y O b l i g a t i o n b y e a c h R a t i n g A g e n c y t h e n u n d e r c o n t r a c t w i t h t h e C o m m i s s i o n t o p r o v i d e i t s l o n g - t e r m r a t i n g
t h e r e f o r .
1 2 6 2 9 5 7 9 . 4
1 - 1
2 3 4
B) Withdrawal or Suspension of Commission Bond Rating; Reduction below Investment
Grade; Event of Default.
In addition to the increases set forth above, if (y) one or more of the Rating Agencies shall
withdraw or suspend its/their Commission Bond Rating(s) or reduce its/their Commission Bond
Rating(s) below Investment Grade (whether or not such reduction results in a termination or
suspension of the Bank's obligations under the Agreement) or (z) an Event of Default shall have
occurred and be continuing under the Agreement, then the Commitment Fee shall increase
automatically and immediately by 100 basis points per annum above the Commitment Fee in
effect immediately prior to such withdrawal, suspension, reduction or Event of Default, and shall
remain in effect for so long as such withdrawal, suspension or reduction remains in effect or, in
the case of an Event of Default, for so long as said Event of Default has not been waived or
cured to the Bank's satisfaction, in each case, as set forth below.
The Commitment Fee will be increased or reduced on such date that the Rating Agency or
Rating Agencies in question shall have publicly announced (i) a suspension, withdrawal or
reduction of its/their Commission Bond Rating(s) as described in the immediately preceding
paragraph or (ii) the reinstatement of its/their Commission Bond Rating(s) to that level which
was applicable thereto prior to such suspension, withdrawal or reduction of its/their Commission
Bond Rating(s). In the case of an Event of Default, the increase in the Commitment Fee as a
result thereof will remain in effect for so long as Event of Default has not been waived or cured,
in either case, in writing by the Bank.
12629579.4
1-2
e
235
ATTACHMENT 7
DRAFT
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
2009 Sales Tax Revenue Bonds - Variable Rate Bonds
{Limited Tax Bonds}
$185,000,000
The following table is an estimate of the costs associated with the financing
Payee Purpose Fees & Expenses
Riverside County Transportation Commission Commission Administration $ 10,000.00
Best, Best & Krieger Issuer's Counsel 20,000.00
McGladrey & Pullen RCTC Auditor 8,000.00
Orrick, Herrington & Sutcliffe Bond Counsel 198,500.00
Fieldman, Rolapp & Associates Financial Advisor 122,000.00
Fulbright & Jaworski Disclosure Counsel 55,000.00
Moody's Investor Services Rating Agency 70,000.00
Standard & Poor's Rating Agency 60,375.00
Fitch Ratings Rating Agency 55,000.00
U.S. Bank Trustee & Trustee's Counsel 10,000.00
Liquidity Providers Counsel Nixon Peabody 50,000.00
Image Master Printing 10,000.00
Geographies Printing / Production of Credit Presentation 5,000.00
Verification Agent TBD 3,000.00
Contingency Miscellaneous 23,125.00
TOTAL $ 700,000.00
preliminary, and subject to change
1 Estimate.
2 Estimate, a not -to -exceed amount per Mrunal MehtaShah.
3 Estimate, per Theresia on 7/27/09.
4 Per 7/28 email from Mary Collins. Includes a fee of $195K plus $3.5K for expenses.
5 Per proposed agreement from FRA and includes $110,000 for fees plus expenses.
6 Per their proposal.
7 Estimate.
9 Per John Tillapaugh on 7/28/09. Annual surveillance fee of $4K thereafter on each anniversary.
70 Estimate.
6 Per 7/28/09 phone conversation with Mary Fowler, fee of $60,375 includes both long-term and short-term ratings; annual surveillance f
1
2
3
4
5
6
7
a
9
10
11
12
13
14
11 Not -to -exceed amount, per term sheet.
12 Estimate.
13 Estimate.
14 Estimate.
Last updated: 8/4/2009
236
FINANCING PROGRAM OVERVIEW
O 2009 Measure A interim financing program
• $185 million commercial paper (CP) program started in 2005
• Two forward starting swaps totaling $185 million executed in 2006
- Lehman Brothers' swap terminated in 2008
- New Deutsche Bank swap executed in 2008
• $126 million Series 2008 Bonds priced in May 2008
O Measure A financing being executed as planned
• $185 million refinancing of interim debt:
- To integrate with forward starting swaps
- Pricing scheduled for September 2009
a
MEASURE A SALES TAX RECEIPTS AS
PRIMARY SOURCE OF FINANCING
O Measure A receipts have been in place since 1989
• FY 2008/09 Measure A estimated revenues of $121.5 million
O Long-term Measure A revenues reflect diversified local
economy and population growth
O Recent FY 2008/09 receipts indicate slowdown in economic activity
• FY 2008/09 receipts of $124.7 million vs. FY 2007/08 receipts
of $146.1 million
CURRENT WESTERN COUNTY
HIGHWAY PROJECTS
NEAR TERM
LONGER RANGE
238
■•
MP •
I
1
RCTC - Board Leadership
Bob Buster, Vice Chair
RCTC - Executive Staff
Anne Mayer, Executive Director
Theresia Trevino,
Chief Financial Officer
Fieldrnan, Rolapp & Associates -
Financial Advisor
Daniel Wiles, Principal
& General Counsel
Barclays Capital
x;
Senior Managing Underwriter
John McCray-Goldsmith,
Director
FINANCIA
UPDATE &
SERIES 2009
SALES TAX
REVENUE BOND
�%B o f A S w a p o f $ 1 0 0 M M
O D B S w a p o f $ 8 5 M M
2 0 0 9 M E A S U R E A C O M M E R C I A L
P A P E R P R O G R A M
O $ 1 8 5 m i l l i o n c o m m e r c i a l p a p e r a u t h o r i z a t i o n
" S e c u r e d b y a L e t t e r o f C r e d i t f r o m B a n k o f A m e r i c a t h a t
e x p i r e s M a r c h 2 9 , 2 0 1 0
O $ 1 1 0 m i l l i o n o f c o m m e r c i a l p a p e r o u t s t a n d i n g a s o f A u g u s t 2 0 0 9
- S i g n i f i c a n t l a n d m i t i g a t i o n a c q u i s i t i o n s
" S t r a t e g i c p a r t n e r s h i p e f f o r t s
" L o c a l j u r i s d i c t i o n p r o j e c t s
" P r e l i m i n a r y e n g i n e e r i n g o n h i g h w a y p r o j e c t s
O 2 0 0 9 B o n d s t o r e f i n a n c e a p p r o x i m a t e l y $ 5 0 m i l l i o n o f c o m m e r c i a l p a p e r
O P r o c u r e m e n t o f n e w l i q u i d i t y f a c i l i t y t o c o m m e n c e a f t e r t h e i s s u a n c e o f
t h e 2 0 0 9 S a l e s T a x B o n d s ( 2 0 0 9 B o n d s )
S E R I E S 2 0 0 8 B O N D S
O $ 1 2 6 . 3 9 5 m i l l i o n o f f i x e d r a t e b o n d s i s s u e d u n d e r a
m u l t i m o d a l i n d e n t u r e
" M a n d a t o r y t e n d e r o n D e c e m b e r 1 , 2 0 0 9
" C a s h f u n d e d r e s e r v e i n p l a c e
" C a p i t a l i z e d i n t e r e s t t h r o u g h D e c e m b e r 1 , 2 0 0 9
" N o e v e n t o f d e f a u l t f o r f a i l e d r e m a r k e t i n g o n D e c e m b e r 1 , 2 0 0 9
- P e n a l t y r a t e o f 1 1 %
F O R W A R D S T A R T I N G S W A P S
O $ 1 8 5 m i l l i o n n o t i o n a l a m o u n t
" $ 1 0 0 m i l l i o n - B a n k o f A m e r i c a , N . A . ( B o f A )
" $ 8 5 m i l l i o n - D e u t s c h e B a n k ( D B )
O B o f A S w a p : 3 . 6 7 9 % f o r 2 0 y e a r s v s . 6 7 % o f 1 - m o n t h L I B O R
O D B S w a p : 3 . 2 0 6 % f o r 2 0 y e a r s v s . 6 7 % o f 1 - m o n t h L I B O R
O E f f e c t i v e d a t e : O c t o b e r 1 , 2 0 0 9
E X I S T I N G S W A P S A M O R T I Z A T I O N
$ 8 . 0 0 0 . 0 0 0
$ 7 , 0 0 0 . 0 0 0 -
e
$ 6 , 0 0 0 . 0 0 0
h
$ 5 , 0 0 0 . 0 0 0
$ 4 , 0 0 0 , 0 0 0
o ^ �� o ^ ^ o ^ M 1 o ^ ' 3 o ^ p o ^ r y o ^ 6 o ^ M 1 ? o ^ P o M 1 o ^ 9 o M 1 0 o M 1 ^ O 0 ` ���� o ' ��p o M 1 �� o M 1 6 0 4 o M 1 0 0 0 9 M 1 M 1 M 1 M 1 M 1 M 1 M 1 M 1 M 1 M 1 h ' L M 1 M 1 M 1 M 1 M 1 M 1
2 3 9
NEW FINANCING: 2009 BONDS
O RCTC plans to issue $185 million of VRDBs by October 1, 2009
O Forward starting swaps require $185 million of variable rate debt
for integration
O Refinance $126 million of Series 2008 Bonds subject to mandatory
tender on December 1, 2009
O Refinance approximately $50 million of commercial paper
• Anticipated needs for Perris Valley Line, toll project engineering and
planning, and ongoing Measure A projects
0
SECURITY AND STRUCTURE FOR 2009 BONDS
O Series 2009 bonds are secured by a gross pledge of 100% of
2009 Measure A sales tax revenues
• Collected by the California State Board of Equalization and
paid directly to the Trustee
• Trustee pays debt service prior to transfer to RCTC
O Variable rate demand obligations with liquidity provided through a
Standby Bond Purchase Agreement (SBPA) with JP Morgan Chase Bank,
National Association (rated Aa1/AA-/AA-)
• 2-year liquidity facility
O Cash funded debt service reserve fund
• Already partially funded through 2008 Bonds proceeds
• Sized at the least of
fi) 10% of par,
(ii) 125% of average annual debt service, and
(fill maximum annual debt service on the outstanding 2009 Bonds
O Strong 1.5x ABT for Senior Lien parity bonds
O 2009 Measure A Ordinance currently has a $500 million debt limit
0
JP MORGAN STANDBY BOND
PURCHASE AGREEMENT
O Liquidity Term: 2 Years
O Ratings: P-1/A-1+/F1+
O Special Events of Default by RCTC
• Failure to pay when due any principal or sinking fund requirement on
any 2009 Bonds and any interest on any 2009 Bonds
• Any final judgments against RCTC over $15,000,000 not covered by
insurance, which remain unpaid, undischarged, unbonded or
undismissed for a period of 60 days
• An event of insolvency has occurred
• The SBPA, the Indenture, or the 2009 Bonds cease to be valid
and binding
• The long-term unenhanced ratings of the 2009 Bonds or any
parity bonds are withdrawn or suspended for credit related reasons
by Moody's, S&P and Fitch or reduced below "Baa3" by Moody's,
"BBB-" by S&P, and "BBB-" by Fitch
O Events of Default
Default in due performance or observance of any of the bond covenants,
which default remains unremedied for a period of 30 days after receiving
notice to that effect
Any incorrect material representation made by or on behalf of RCTC
in any of its 2009 Bonds documents
O Remedies
Upon the occurrence of a Special Event of Default, the obligation of the
Bank to purchase 2009 Bonds terminates
• Upon the occurrence of an Event of Default, the obligation of the Bank to
purchase 2009 Bonds is suspended until the event is cured
240
MADS
FY 2070';
ilevenu'e ;_
Eushion
{2.0x)
Base Case Scenario 1 Scenario 2 Scenario 3
$14,185;B40 " $23,OA5,960 $1
TIMELINE
Date Description
Commission
Wednesday, Approves Financing
August 12, 2009 Documents
Thursday, Documents Sent to
August 13, 2009 Rating Agencies
Monday,
August 24, 2009
Meetings with
Rating Agencies
in New York
Tuesday, Meeting with Rating
August 25, 2009 Agency in New York
Thursday, Bond Ratings
September 3, 2009 Received
Tuesday,
September 29, 2009 Bond Sale
Thursday,
October 1, 2009 Bond Closing
2009 MEASURE A COVERAGE &
STRESS SCENARIOS
O Ordinance limits outstanding debt to $500 million
O Estimated FY 2008/09 revenues are $121.5 million
O Base Case: Issue 2009 Bonds: $185 million senior lien
• $185 million of VRDBs at the swap rates + 125 bps for liquidity
+ 10 bps for remarketing
• 20 year level debt service amortization
• Expected debt service coverage for 2009 Bonds is well over
8.0x (senior lien)
O Stress Scenario 1: Issue 2009 Bonds and issue $185 million of CP
• $185 million of VRDBs at the swap rates + 125 bps for
liquidity + 10 bps for remarketing
• $185 million of CP at the 10-year average SIFMA rate
(2.40%) + 125 bps for liquidity
• 20 year and 30 year level debt service amortization on
the 2009 Bonds and the CP, respectively
• Expected debt service coverage of 5.3x (senior and
subordinate lien)
O Stress Scenario 2: Issue 2009 Bonds and refund all CP:
$247.71 million 2009 senior lien refunding
• $185 million of VRDBs at the swap rates + 125 bps for
liquidity+ 10 bps for remarketing
• $62.71 million of fixed rate bonds at 6%
• 20 year level debt service amortization
• Expected debt service coverage of 6.2 x
O Stress Scenario 3: Issue 2009 Bonds and refund all CP + new money
to hit debt limit: $500 million senior lien issue in 2009
• $185 million of VRDBs at the swap rates + 125 bps for liquidity
+ 10 bps for remarketing
$315 million of fixed rate bonds at 6%
• 20 year level debt service amortization
• Expected debt service coverage of 2.9 x
O More modest utilization of debt and the ability to amortize debt
up to 30 years add cushions that make these stress case coverage
scenarios very conservative
SUMMARY OF CREDIT STRENGTHS
O 2009 Bonds do not add new indebtedness but refinance currently
outstanding bonds and commercial paper
O Strong economic foundation for continued sales tax receipts
O Proactive organization and experienced leadership
O $500 million debt limit ensures strong debt service coverage under
any scenario
O Broad access to capital markets and liquidity
O Expected debt service coverage of over 8.0 x on outstanding senior
lien debt after 2009 financing
O Conservative additional bonds test and Commission coverage policy (2.0x)
O Limited additional bonding plans
241
August 7, 2009
To: Commissioners
From: Theresia Trevino, Chief Financial Officer(}
S.
John Standiford, Deputy Executive Director
As a result of negotiations with our proposed liquidity facility provider, JP Morgan,
our bond counsel has revised Section 3 of Resolution No. 09-017 (Attachment 1 to
Agenda Item 9). Accordingly, pages 11 through 18 should be replaced with the
revised attachment.
AGENDA ITEM 9
Attachment 1: Resolution No. 09-017 (Draft)
Replace pages 11 through 18 with this revised draft of Resolution No. 09-017.
Revision is marked on page 14, Section 3.
NO. 09-017
RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF NOT TO EXCEED
$185,000,000 AGGREGATE PRINCIPAL AMOUNT OF RIVERSIDE COUNTY
TRANSPORTATION COMMISSION SALES TAX REVENUE BONDS (LIMITED TAX BONDS)
IN ONE OR MORE SERIES, THE EXECUTION AND DELIVERY OF A SUPPLEMENTAL
INDENTURE, ONE OR MORE PURCHASE CONTRACTS, AN OFFICIAL STATEMENT AND
CONTINUING DISCLOSURE AGREEMENT, ONE OR MORE REMARKETING
AGREEMENTS, AND ONE OR MORE LIQUIDITY FACILITIES, AND THE TAKING OF ALL
OTHER ACTIONS NECESSARY IN CONNECTION THEREWITH
WHEREAS, the Riverside County Transportation Commission (the "Commission") is a
county transportation commission duly organized and existing pursuant to the County
Transportation Commissions Act, being Division 12 of the Public Utilities Code of the State of
California (Section 130000 et seq.);
WHEREAS, the Commission is authorized pursuant to the Riverside County
Transportation Sales Tax Act, being Division 25 of the Public Utilities Code of the State of
California (Section 240000 et seq.) (the "Act"), to, among other things, and with voter approval,
levy a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing
with Section 7251) of Division 2 of the California Revenue and Taxation Code (the "Sales Tax
Law") and to issue limited tax bonds payable from the proceeds of such tax;
WHEREAS, the Commission adopted Ordinance No. 02-001, named the "Transportation
Expenditure Plan and Retail Transaction and Use Tax Ordinance" (the "Ordinance") on May 8,
2002, pursuant to the provisions of the Act, which Ordinance provides for the imposition of a
retail transactions and use tax (the "Sales Tax") applicable in the incorporated and
unincorporated territory of the County in accordance with the provisions of the Sales Tax Law at
the rate of zero percent (0%) until the expiration of the 1988 Sales Tax on June 30, 2009, and
thereafter at the rate of one-half of one percent (1/2%) for a period not to exceed thirty (30)
years;
WHEREAS, by its terms, the Ordinance became effective at the close of the polls on
November 5, 2002, the day of the election at which the proposition imposing the Sales Tax was
approved by more than two-thirds of the electors voting on the measure;
WHEREAS, the Ordinance empowers the Commission to sell or issue, from time to
time, on or before the collection of the Sales Tax, bonds, or other evidences of indebtedness, in
the aggregate principal amount at any one time outstanding not to exceed $500 million for
capital expenditures for various purposes, including to carry out the transportation projects
described in the Riverside County Transportation Improvement Plan, adopted as part of the
Ordinance, including any future amendments thereto (the "Expenditure Plan");
[OHS West:260692474.7
WHEREAS, the Commission is authorized by Section 240309 of the California Public
Utilities Code to issue from time to time limited tax bonds (defined to include indebtedness and
securities of any kind or class, including sales tax revenue bonds), secured and payable in whole
or in part from revenues of the Sales Tax ("Sales Tax Revenues");
WHEREAS, the Commission has heretofore authorized the issuance of not to exceed
$200,000,000 in aggregate principal amount of its Commercial Paper Notes (Limited Tax
Bonds), Series A and Series B (collectively, the "CP Notes"), pursuant to an Indenture dated as
of March 1, 2005 (the "CP Indenture"), by and between the Commission and U.S. Bank National
Association, as successor trustee;
WHEREAS, the Commission has heretofore executed and delivered and there are
currently outstanding interest rate swap agreements in an aggregate notional amount of $185
million (the "Existing Swaps"), which Existing Swaps have an effective date of October 1, 2009;
WHEREAS, the Commission has heretofore issued its Sales Tax Revenue Bonds
(Limited Tax Bonds) (the "Prior Bonds"), pursuant to an Indenture, dated as of June 1, 2008 (as
amended and supplemented, the "Indenture"), and a First Supplemental Indenture, dated as of
June 1, 2008, each by and between the Commission and U.S. Bank National Association, as
trustee (the "Trustee");
WHEREAS, the Commission hereby determines that one or more new series or
subseries of bonds in an aggregate principal amount not to exceed one hundred eighty-five
million dollars ($185,000,000) is necessary in order to finance (i) the refunding of all of the
outstanding Prior Bonds, (ii) the refunding of all or a portion of the outstanding CP Notes, (iii)
the reserve fund for such bonds, if any, (iv) swap termination payments, if any, (v) funds for
projects authorized in the Expenditure Plan, and (vi) the costs of issuance incurred in connection
with such bonds, and the Commission has determined that such bonds in an amount not to
exceed such principal amount shall be issued, secured by the Sales Tax Revenues and entitled,
"Riverside County Transportation Commission Sales Tax Revenue Bonds (Limited Tax Bonds),
Series 2009" (the "Series 2009 Bonds");
WHEREAS, the Commission hereby further determines that the Series 2009 Bonds shall
be issued pursuant to a Second Supplemental Indenture, amending and supplementing the
Indenture (the "Second Supplemental Indenture"), by and between the Commission and the
Trustee;
WHEREAS, there has been prepared and presented to the Commission a proposed form
of Second Supplemental Indenture;
WHEREAS, in order to minimize debt service and maximize benefits to the Commission
in connection with the issuance of the Series 2009 Bonds, it may be desirable to issue the Series
2009 Bonds as fixed rate bonds or as variable rate bonds (the "Variable Rate Bonds") and if the
bonds are issued as Variable Rate Bonds to enter into remarketing agreements (the "Remarketing
Agreements") with one or more remarketing agents to provide remarketing agent services with
respect to the Series 2009 Bonds;
[OHS West:260692474.7
WHEREAS, in order to set forth the terms of sale of the Series 2009 Bonds, the
Commission proposes to enter into one or more bond purchase agreements (the "Purchase
Contracts") with Barclays Capital Inc., E.J. De La Rosa & Co., Inc. and Backstrom McCarley
Berry & Co., LLC (collectively, the "Purchasers");
WHEREAS, the Purchasers have caused to be prepared and submitted to the
Commission proposed forms of the Purchase Contracts and the Remarketing Agreements;
WHEREAS, in order to provide liquidity support for the Series 2009 Bonds that are
Variable Rate Bonds, the Commission may enter into one or more standby bond purchase
agreements or other liquidity support agreements (each a "Liquidity Facility" and, collectively,
the "Liquidity Facilities"), containing such terms and conditions as the Executive Director of the
Commission (the "Executive Director") or the Chief Financial Officer of the Commission (the
"Chief Financial Officer") considers appropriate and with'a bank or other financial institution or
association (each a "Liquidity Provider" and, collectively, the "Liquidity Providers") to be
selected by the Executive Director or Chief Financial Officer in the event a Liquidity Facility is
determined to be beneficial to the marketing of the Series 2009 Bonds;
WHEREAS, a proposed form of the Liquidity Facilities has been prepared and submitted
to the Commission;
WHEREAS, in order to provide information about the Series 2009 Bonds and related
matters to purchasers and potential purchasers of the Series 2009 Bonds, the Commission
proposes to execute and deliver an official statement (the "Official Statement');
WHEREAS, there has been prepared and presented to the Commission a proposed form
of Official Statement (the "Official Statement') and a proposed form of Continuing Disclosure
Agreement (the "Continuing Disclosure Agreement");
WHEREAS, the Commission has been presented with proposed forms of the Second
Supplemental Indenture, the Purchase Contracts, the Continuing Disclosure Agreement, the
Remarketing Agreements, the Liquidity Facilities and the Official Statement relating to the
financing described herein (the "Financing"), and the Commission has examined and approved
each document and desires to authorize and direct the execution of such documents as are
specified herein and such other documents as are necessary in connection with the Financing and
to authorize and direct the consummation of the Financing; and
WHEREAS, all acts, conditions and things required by the Law and the Constitution and
laws of the State of California to exist, to have happened and to have been performed precedent
to and in connection with the issuance of the Series 2009 Bonds and consummation of the
Financing authorized hereby do exist, have happened and have been performed in regular and
due time, form and manner as required by law, and the Commission is now duly authorized and
empowered, pursuant to each and every requirement of law, to authorize such Financing and to
authorize the execution of the Second Supplemental Indenture, the Purchase Contracts, one or
more Liquidity Facilities, the Official Statement, the Continuing Disclosure Agreement and the
Remarketing Agreements for the purposes, in the manner and upon the terms provided;
[OHS West:260692474.7
NOW THEREFORE, THE RIVERSIDE COUNTY TRANSPORTATION
COMMISSION RESOLVES:
Section 1. The Commission finds and determines that the foregoing recitals are true
and correct.
Section 2. The issuance by the Commission of not to exceed $185,000,000 aggregate
principal amount of Riverside County Transportation Commission Sales Tax Revenue Bonds
(Limited Tax Bonds), Series 2009, in accordance with the provisions set forth in the Indenture, in
one or more series or subseries, is hereby authorized and approved.
Section 3. The proposed form of Second Supplemental Indenture presented to this
meeting and the terms and conditions thereof are hereby approved. The structure, date, maturity
date or dates (not to exceed June 1, 2029), fixed or variable interest rate or rates (such rates not
to exceed a maximum of 12% per annum, except that the interest rate on any Series 2009 Bonds
purchased by a Liquidity Provider and held pursuant to the terms of a Liquidity Facility shall not
exceed 18% per annum) or methods of determining the same, interest payment dates, forms,
registration privileges, place or places of payment, terns of redemption, tender, mandatory
purchase, additional series designation and number thereof and other terms of the Series 2009
Bonds shall be (subject to the foregoing limitations) as provided in the Indenture and the Second
Supplemental Indenture as finally executed and delivered.
The Executive Director is hereby authorized and directed, for and in the name and on
behalf of the Commission, to execute and deliver the Second Supplemental Indenture, in
substantially said form, with such changes therein, including without limitation changes
necessary to issue the Series 2009 Bonds as fixed rate bonds, as the officer executing the same
may require or approve, such approval to be conclusively evidenced by the execution and
delivery thereof.
Section 4. The proposed form of the Purchase Contracts presented to this meeting
and the terms and conditions thereof are hereby approved. The Executive Director is hereby
authorized and directed, for and in the name and on behalf of the Commission, to sell the Series
2009 Bonds to the Purchasers pursuant to one or more Purchase Contracts with the Purchasers'
compensation not to exceed 0.5% of the principal amount of the Series 2009 Bonds and to
execute and deliver one or more Purchase Contracts, in substantially said form, with such
changes therein as the officer executing the same may require or approve, such approval to be
conclusively evidenced by the execution and delivery thereof.
Section 5. The proposed form of the Liquidity Facilities presented to this meeting
and the terms and conditions thereof are hereby approved. The Executive Director is hereby
authorized to negotiate with Liquidity Providers one or more Liquidity Facilities for the Series
2009 Bonds, and, if the Executive Director, with the advice of Fieldman, Rolapp & Associates
(the "Financial Advisor"), determines that doing so is in the best interests of the Commission, to
enter into such Liquidity Facilities in substantially said form, with such changes therein as the
officer executing the same may require or approve, such approval to be conclusively evidenced
by the execution and delivery thereof.
[OHS West:260692474.7
Section 6. The proposed form of Official Statement presented to this meeting is
hereby approved. The Executive Director is hereby authorized and directed to execute and
deliver to the Purchasers a certificate deeming the Official Statement, in substantially the form
on file with the Clerk and presented to this meeting and with such changes as the Executive
Director approves in the interest of the Commission, final within the meaning of Securities
Exchange Commission Rule 15c2-12. The Purchasers are hereby authorized to distribute the
Official Statement in the form so deemed final by the Executive Director, including a
preliminary form of the Official Statement, if the Executive Director determines such
distribution is appropriate for the sale of the Series 2009 Bonds. The Executive Director is
hereby authorized and directed, for and in the name and on behalf of the Commission, to execute
and deliver the Official Statement, in final form, in substantially said form, with such changes
therein as the officer executing the same may require or approve, such approval to be
conclusively evidenced by the execution and delivery thereof.
Section 7. The proposed form of Continuing Disclosure Agreement presented to this
meeting is hereby approved. If the Executive Director determines that doing so is in the best
interests of the Commission, the Executive Director is hereby authorized and directed, for and in
the name and on behalf of the Commission, to execute and deliver the Continuing Disclosure
Agreement in substantially said form, with such changes therein as such officer executing the
same may require or approve, such approval to be conclusively evidenced by the execution and
delivery thereof
Section 8. The proposed form of Remarketing Agreements presented to this meeting
is hereby approved. If the Executive Director determines that issuing the Series 2009 Bonds as
Variable Rate Bonds is in the best interests of the Commission, the Executive Director is hereby
authorized and directed, for and in the name and on behalf of the Commission, to execute and
deliver one or more Remarketing Agreements with such remarketing agents as the Executive
Director shall designate in substantially said form, with such changes therein as such officer
executing the same may require or approve, such approval to be conclusively evidenced by the
execution and delivery thereof.
Section 9. The Executive Director is hereby authorized to negotiate with fmancial
institutions and/or insurance companies, as applicable, an irrevocable letter of credit, or a surety
bond, or an insurance policy, and, if the Executive Director, with the advice of the Financial
Advisor, determines that doing so is in the best interest of the Commission, to secure such
irrevocable letter of credit, surety bond, or insurance policy on such terms as the Executive
Director, with the advice of the Financial Advisor, determines are appropriate, in order to fund
any bond reserve fund established pursuant to the Indenture or the Second Supplemental
Indenture.
Section 10. The Executive Director is hereby authorized to enter into or to instruct the
Trustee to enter into, with the advice of the Financial Advisor, one or more investment
agreements, float contracts, swaps or other hedging products or to terminate or revise the
Existing Swaps (hereinafter collectively referred to as "Hedge Agreements") providing for the
hedging of interest rate or the investment of moneys in any of the funds and accounts created
under the Indenture or the Second Supplemental Indenture, on such terms as the Executive
Director shall deem appropriate. Pursuant to Section 5922 of the California Government Code,
[OHS West:260692474.7
the Commission hereby finds and determines that the Hedge Agreements will reduce the amount
and duration of interest rate risk with respect to amounts invested pursuant to the Hedge
Agreements and/or is designed to reduce the amount or duration of payment, rate, spread or
similar risk or result in a lower cost of borrowing when used in combination with the Existing
Swaps and the Series 2009 Bonds or enhance the relationship between risk and return with
respect to investments.
Section 11. All approvals, consents, directions, notices, orders, requests and other
actions permitted or required by any of the documents authorized by this Resolution, the CP
Notes or the Existing Swaps, whether before or after the issuance of the Series 2009 Bonds,
including, without limitation, any amendment of any of the documents authorized by this
Resolution or the Existing Swaps or other agreement related thereto, and any of the foregoing
that may be necessary or desirable in connection with any Liquidity Facilities or the extension or
replacement thereof, or any reserve facility, any investment of proceeds of the Series 2009
Bonds, or in connection with the addition, substitution or replacement of underwriters or
remarketing agents, or any agreements with paying agents, escrow agents or verification agents,
the removal or replacement of the Trustee or any similar action may be given or taken by an
Authorized Representative (as such term is defined in the Indenture), without further
authorization or direction by the Commission, and each Authorized Representative is hereby
authorized and directed to give any such approval, consent, direction, notice, order, request, or
other action and to execute such documents and take any such action which such Authorized
Representative may deem necessary or desirable to further the purposes of this Resolution.
Section 12. All actions heretofore taken by the officers and agents of the Commission
with respect to the Financing and the issuance and sale of the Series 2009 Bonds are hereby
ratified, confirmed and approved. If at the time of execution of any of the documents authorized
herein, the Executive Director is unavailable, such documents may be executed by the Deputy
Executive Director of the Commission or the Chief Financial Officer in lieu of the Executive
Director. The Chief Financial Officer of the Commission shall act as the Auditor -Controller of
the Commission for execution of the Series 2009 Bonds. The Clerk of the Board of the
Commission is hereby authorized to attest to the execution by the Executive Director or the
Deputy Executive Director or the Chief Financial Officer of any of such documents as said
officers deem appropriate.
The proper officers and agents of the Commission are hereby authorized and directed,
jointly and severally, for and in the name and on behalf of the Commission, to do any and all
things and to take any and all actions and to execute and deliver any and all agreements,
certificates and documents, including, without limitation, any tax certificates or agreements, any
agreements for depository or verification services, and any agreements for rebate compliance
services, which they, or any of them, may deem necessary or advisable in order to consummate
the Financing and the issuance and sale of the Series 2009 Bonds and otherwise to carry out, give
effect to and comply with the terms and intent of the Ordinance, this Resolution, the Series 2009
Bonds and the documents approved hereby.
[OHS West260692474.7
Section 13. This Resolution shall take effect immediately upon its adoption and
approval.
APPROVED AND ADOPTED by the Riverside County Transportation Commission at
its meeting on August 12, 2009.
By:
Chairman, Board of Commissioners
ATTEST:
By:
Clerk of the Board of the Commission
[OHS West:260692474.7
CERTIFICATE OF THE CLERK OF THE BOARD OF THE
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
I, Jennifer Harmon, Clerk of the Board of the Riverside County Transportation
Commission (the "Commission"), hereby certify that the foregoing is a full, true and correct
copy of a resolution duly adopted at a meeting of the governing board of said Commission duly
and regularly held in Riverside, California, on August 12, 2009, of which meeting all of the
members of said Commission had due notice.
I further certify that I have carefully compared the foregoing copy with the original
minutes of said meeting on file and of record in my office; that said copy is a full, true and
correct copy of the original resolution adopted at said meeting and entered in said minutes; and
that said resolution has not been amended, modified, rescinded or revoked in any manner since
the date of its adoption, and the same is now in full force and effect.
I further certify that an agenda of said meeting was posted at least 72 hours before said
meeting at a location in Riverside, California, freely accessible to the public and a brief general
description of the resolution to be adopted at said meeting appeared on said agenda.
IN WITNESS WHEREOF, I have executed this certificate hereto as of this date,
, 2009.
By
Clerk
[OHS West:260692474.7
Riverside County Transportation Commission
Sales Tax Revenue Bonds
(Limited Tax Bonds)
2009 Series A, B and C
Financing Program Overview
• 2009 Measure A interim financing program
— $185 million commercial paper (CP) program started In 2005
— Two forward starting swaps totaling $185 million executed in 2006
• Onginal counteapames: Bank of America and Lehman Brothers
• Lehman Brothers' swap terminated in 2008
• New Deutsche Bank swap ($85 million) executed in 2008
— $126 million Series 2008 Bonds priced in May 2008
• Measure A financing being executed as planned
— $185 million refinancing of interim debt:
• To integrate with forward starting swaps
• Pricing scheduled for September 2009
Measure A Sales Tax Receipts
As Primary Source of Financing
• Sales taxes through Measure A have been
received since 1989
— 1989 Measure A expired June 30, 2009
— 2009 Measure A commenced July 1, 2009
• FY2008/09 receipts indicate slowdown in
economic activity
— FY2008/09 receipts of $124.7 million vs. FY2007-08
receipts of $146.1 million
• Long term Measure A receipts reflectdiversified
local economy and population growth
— Receipts mirror the health of the County's overall
economy
2009 Measure A
Commercial Paper Program
• $185 million commercial paper authorization
— Secured by a Letter of Credit from Bank of America that expires
March 29, 2010
• 110 million of commercial paper outstanding as of
August 2009
— Significant land mitigation acquisitions
— Preliminary engineering on highway projects
• 2009 issue to retire approximately $50 million of
commercial paper
• Ongoing commercial paper program will requirea new
letter of credit or liquidity facility before Bank of America
letter of credit expires
— Procurement to commence after the issuance of the 2009 Sales
Tax Bonds
4
1
Series 2008 Bonds
II 61 11 LL
• $126.395 million of fixed rate bonds issued
under a multimodal indenture
-Mandatory tender on 12/1/2009
—Capitalized interest through 12/1/2009
—Cash funded reserve in place
— No event of default for failed remarketing on
12/1/2009
• Failed remarketing rate of 11%
New Financing: 2009 Bonds:
It.'�b�" Ilii
• RCTC plans to issue $185 million of Variable Rate
Demand Bonds (VRDBs) by October 1, 2009
- Final maturity date of June 1, 2029
• Forward starting swaps require $185 million of variable
rate debt for integration
• Refund $126 million of Series 2008 bonds subject to
mandatory tender on December 1, 2009
• Retire approximately $50 million of commercial paper
- Anticipated needs for Perris Valley Line, toll project engineering
and planning, and ongoing Measure A projects
Forward Starting Swaps
$185 million notional amount
- $100 million - Bank of Amenca, N.A. (B of A)
- $85 million - Deutsche Bank (DB)
B of A swap: 3.679% for 20 years
vs. 67% of 1-month LIBOR
DB swap: 3.206% for 20 years
vs. 67% of 1-month LIBOR
• Effective date: October 1, 2009 ,v
MO:.M/AO-
PIPee", IIIIIIII/I/I
a
Integrating the Swaps
Liquidity
provider'
RCTC
1'i$x
1' a `c3
a
7.678%/0.206%
Fixed Rate
Floating Rate
Poked to 6T% of LIBOR)
Variable Rate
Bond Holders
Counterparties
(B of A and DB)
' Aueune•Met FIMLq Mee are equal.
Releeeneelp between •@e could ••ry
weekly
Estimated.. en136 Cp 09E Ne 119.1,2 ,
ana toot remviosloO
...mama Int. wawa a railed twin.. Ma
MmaM empnlen eem.tlene
e
2
Security and Structure for
2009 Bonds
Series 2009 bonds are secured by a gross pledge of 100% of
2009 Measure A sales tax revenues
— Collected by the California State Board of Equalization and paid
directly to the Trustee
— Trustee pays debt service prior to transfer to ROTC
• VRDBs with liquidity provided through a Standby Bond
Purchase Agreement with JPMorgan Chase Bank, National
Association
— 2-year liquidity facility
• Cash funded debt service reserve fund
— Already partially funded through 2008 proceeds
• Strong 1.5x ABT for Senior Lien panty bonds
• 2009 Measure A Ordinance currently has a $500 million debt
limit
9
Standby Bond Purchase
Agreement
• JPMorgan Chase Bank (JPM) two-year liquidity
facility at 1.25%
— Interest rate on bank bonds could vary from 8.5% to 18%
— After bank bonds are held by JPM for 6 months, bonds are payable
over three years
• Liquidity facility can be terminated prior to 2011
— By RCTC In event of JPM rating downgrades below P-1/A-1/F-1
— By JPM due to special events of default
• Any bank bonds outstanding become due and payable upon
termination of facility
— Can be suspended by JPM due to events of default
11
Remarketing Process and
Liquidity Facility
• Bondholders can tender VRDBs back to RCTC on
any business day
— Tendered bonds are typically sold by remarketing agents to new
buyers
— If no new buyers are available, RCTC may not have funds
immediately available to purchase tendered bonds
• Standby Bond Purchase Agreement (SBPA)
provides bondholders with a buyer of last resort if
new investors don't buy tendered bonds on a
remarketing date
— Bonds purchased under the SBPA are called "bank bonds"
— Interest rate on bank fronds is usually much higher than market
10
Standby Bond Purchase
Agreement (continued)
• Special Events of Default
— Failure to pay debt service when due
— Final, unappealable judgment exceeding $15 million
which is uninsured and to be enforced by a lien on
sales tax revenues that remains outstanding after
60 days
— Insolvency
— Invalidity of bonds
— Ratings downgrade below BBB- (S&P or Fitch) or
Baa3 (Moody's)
12
3
Coverage & Stress Scenarios
Demonstrate High Quality Credit
ii
• Ordinance limits outstanding debt to $500 million
• Based on assumed FY2009 revenues of $121.500
million (actual receipts of $124.7 million)
• Base Case: Issue 2009 bonds: $185.00 million senior
lien
• Stress Scenario 1: Issue 2009 bonds and issue
$185.00 million of CP
• Stress Scenario 2: Issue 2009 bonds and retire all CP:
$247.71 million 2009 senior lien refunding
• Stress Scenario 3: Issue 2009 Bonds and refund all CP
+ new money to hit debt limit: $500 million senior lien
issue in 2009
1)
Credit Strengths of RCTC
and the 2009 Bonds
• 2009 Bonds do not add to total debt but refinance currently
outstanding bonds and commercial paper
• Strong economic foundation for continued sales tax receipts
• Proactive organization and experienced leadership
• $500 million debt limit ensures strong debt service coverage
under stressed revenue scenarios
• Broad access to capital markets and liquidity
• Conservative additional bonds test (1.5x) and Commission
coverage policy (2.0x)
Expected debt service coverage of over 8.0x on outstanding
senior lien debt after 2009 financing
15
Coverage & Stress Scenarios
Demonstrate High Quality Credit
- , ri
• More modest utilization of debt and the ability to
amortize debt up to 30 years add cushions that make
these stress case coverage scenarios very conservative
Base Case
Stress Scenario 1
Stress Scenario 2
Stress Scenario 3
$14,185,640
$23,045,960
519,597,640
$41.888,740
8.56 76.6%
5.27 621%
6.17 67.6%
2.90 31.0%
82.5%
71.5%
75.7%
48.3%
19
Summary of Issuance
Documents
• Resolution No. 09-017 authorizing issuance
and sale of bonds
• Second Supplemental Indenture
- Relates to structure, maturity dates, interest
rate, and other terms of RCTC Sales Tax
Revenue Bonds, 2009 Series A, Series B,and
Series C
-Supplements original Indenture adopted June
2008
15
4
Summary of Issuance
Documents (continued)
• Official Statement
— Required by securities laws for underwriters to sell
and price bonds
• Contains disclosure of matters material to an investor
• Requires that there be no misstatement or omission of
material facts that would cause statements made in OS
to be misleading
- Board authorization implies review of document and
familiarity with information aboutRCTC
— Includes voluntary Continuing Disclosure
Agreement
V
Estimated Costs of Issuance
(in 000s)
• $1 million estimate
— Includes underwriters'
discount
— Excludes annual
liquidity fee of 1.250/0
and remarketing fee of
.10%
• Certain agreements
may require
amendments
19
Summary of Issuance
Documents (continued)
• Bond Purchase Agreement
— Team of three underwriters
• Barclays (Series A)
• De La Rosa (Series B)
• Backstrom (Series C)
• Remarketing Agreement
— Remarketing agents include Barclays, De La Rosa,
and Backstrom
• Standby Bond Purchase Agreement
— Liquidity facility with JPMorgan Chase
18
Timeline
I
1 I -
[Sate ;°�oescription ..
Wednesday, August 12, 2009 Commission approves Financing Documents
_
Thursday, August 13, 2009
Documents sent to ftabng Agencies
Monday, August 24, 2009
Meetng with Rating Agencies in New York
Tuesday, August 25, 2009
Meeting with Rating Agencies in New York
Thursday, September 3, 2009
Bond Ratings Received
Tuesday, September 29, 2009
Bond Sale
Thursday. October 1, 2009
Bond posing
20
5
Maryann Edwards
Mayor
Jeff Comerchero
Mayor Pro-Tem
Michael S. Naggar
Council Member
Ronald H. Roberts
Council Member
Chuck Washington
Council Member
951-506-5100
FAX 951-694-6499
City of Temecula
43200 Business Park Drive • Temecula, CA92590 • Mailing Address: P.O. Box9033 • Temecula,CA92589-9033
)951) 506-5100 • Fax (95I) 694-6499 • www.ciryoftemecula.org
August 6, 2009
AUG `,?'? 2009
i;:rrATION COMMISSION
Clerk of the Board
Riverside County Transportation Commission
P. O. Box 12008
Riverside, CA 92502-2208
Dear Clerk of the Board:
I will be in Texas for a Transportation and Infrastructure Summit on
August 12th so Council Member Jeff Comerchero will attend the
Riverside County Transportation Commission meeting as my alternate.
Sincerely,
Ron Roberts
Council Member
cc: Council Member Comerchero
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