HomeMy Public PortalAbout4A Adoption of Resolution 15-5137SA Authorizing the Issuance and Sale of Tax Allocation Refunding BondsSA AGENDA
ITEM 4 .A .
ADMINISTRATIVE SERVICES DEPARTMENT
MEMORANDUM
DATE : Decemb er 15 , 20 15
TO: Successor Agency to the Fo rmer Temple City Redevelopment Agency
FROM : Brya n Cook , Executive Director
By : T racey L. Hause , Admi nistrat ive Se rv ices Director
SUBJECT : ADOPTION OF RESOLUTION NO. 15-5 137SA AUTHORIZING THE
ISSUANCE AND SALE OF TAX ALLOCATION REFUNDING BONDS ,
AND APPROVING THE FORM OF AN INDENTURE OF TRUST AND
AUTHORIZING CERTAIN OTHER ACTIONS IN CONNEC TION
THEREWITH
RECOMMENDATION :
Ad opt Resolution No . 15-5137SA (Attachment "A ") authorizing the issuance and sale of
Tax Allocation Refun ding Bonds , and approving the fo rm of an Indentu re of Trust and
a ut hor izing certain oth e r actions in co nn ecti on therewit h.
BACKGROUND :
1. On September 7 , 2005 , the Te mp le City Financing Authority (Financing Authority)
issued $8 ,000,00 0 Tax Allocation Refunding Bonds (2005 Bonds) for the purpose of
refunding 1993 Revenue Bonds and provide reso u rces for projects with in the
Rosemead Bo ul e vard Proj ect Area .
2 . On February 1, 2012 , every redeve lopment agency in the State of Californ ia was
dissolved a nd a successor agency was created for each redevelopment agency .
3. On June 27 , 2 01 2 , Assembly Bill 1484 (AB 1484) w as signed into law .
4 . On Nove m be r 17 , 20 15 , t he S uccessor Agency to the Former Temp le City
Redevelopme nt Age ncy (Successor Agency) approved a Professiona l Services
A greeme nt wi th Urban Futures In corporated (Urban Futures , Inc.) for Financial
Advisory servi ces fo r this proposed t ransaction .
Successor Agency to the Former Temple City Redevelopment Agency
December 15 , 2015
Page 2 of 3
ANALYSIS :
Due to the dissolution of redevelopment agencies , the Successor Agency now has the
responsibility for repayment of the 2005 Bonds . With the passage of AB 1484, the
Successor Agency may refund existing bonds , with the approval of the Oversight Board of
the Successor Agency to the Former Temple City Redeve lopment Agency (Oversight
Board) and the State Department of Finance (DOF ) for the purpose of generating a debt
service savings .
Based on current market interest rates, the Successor Agency can generate an estimated
total debt service savings of approximate ly $974 ,000 by issuing the proposed 2016 bonds
(2016 Bonds), which will refund (repay) all outstanding 2005 Bonds. The 2005 Bonds
currently have an interest rate on the longest term bonds of 4 .875 %. It is anticipated that
the proposed 2016 Bonds would have an interest rate of approximately 2 . 70 % on the
longest term bonds . The term of the new 2016 Bonds would not be extended , and would
match the current final maturity date of the 2005 Bonds (September 1, 2024).
Based on the redeve lop ment d issolution laws , the Successor Agency may reta in the
savings amount to the extent it has additional enforceable obligations . Otherw ,se , the
savings amount wou ld be shared among the taxing entities (i.e ., County of Los Ange les ,
Temple City Unified School District and Los Angeles Commun ity College Dist rict) as
residual revenues .
DOF is a ll owed 60 days to review any actions of the Oversight Board to approve refunding
bond issues . It is anticipated the Oversight Board will approve the proposed action of the
Successor Agency with regards to issuance of the 2016 Bonds at its meeting on
December 14 , 2015 . Then DOF would have until the third week of February to review the
proposed 2016 Bonds.
The final interest rate structure will be determined when the 2016 Bonds are priced and
sold , which is expected to occur by the first week of March , 2016 . Depending on ma rket
conditions at the time of sale , the bonds may be issued through a public sale , or may be
"privately placed " wi th a bank . The Successor Agency 's Financial Advisor, Urban
Futures , Inc ., will work with Successor Agency staff to determine the optimum method of
sale . The bond closing would occur by the third week of March , 2016 and a refunding
escrow would be used to repay all outstanding 2005 Bonds .
Resolution No . 15-5137SA , the Su ccessor Agency is being asked to approve the form of
the Indenture of Trust. The Indenture of Trust (Attachment "B") defines the payment terms
and conditions of 2016 Bonds , and establ ishes the funds and accounts that w ill ,)e he ld
by the Trustee on behalf of the Agency, inclu ding the Debt Service Reserve A c co unt.
Other documents necessary for the issuance of the 2016 Bonds , including the Pre liminary
Official Statement , Escrow Agreement , and Conti nuing Disclosure Agreement (and /or
Successor Agency to t he Former Temple City Redevelopment Agency
December 15 , 2015
Page 3 of 3
Private Placement Memorandum , Placement Agent Agreement , and Rate Lock
Agreement if private ly p laced with a bank) wi ll be presented to the Successor Agency for
approval at a futu re meeti ng , closer to t he an ticipated pric i ng date . It is an t icipated that
these additional documents will be presented to the Successor Agency for consic Jeration
at the first meeting in February, 2016 .
CITY STRATEGIC GOALS :
Refunding of the 2005 Bonds will promote or further the City's/Successor Agency's
Strategic Goal of Good Governance.
FISCAL IMPACT :
The repayment of pri nc ipa l and in terest on the 2016 Bonds is payab le solely from Pledged
Tax Revenues , which is tax increment revenues from the Project Area deposited into the
Agency 's Redevelopment Property Tax T rust Fund ("RPTIF"), and available after
satisfying certain admi n is t rative costs of the County and pass through obl igat ions to
affected taxing entities.
The 2016 Bonds will no t be a debt of the City 's general fund or the State , or any of its
politica l subdivisions , except the Successor Agency . All costs of issuance will be funded
from the net proceeds of the 2016 Bonds , and the estimated total debt service ~>av i ngs
($974 ,000) is net of s uch issuance costs .
ATTACHMENTS :
A Resolution No . 15-5137SA
B. Indenture of Trust
-
ATTACHMENT A
RESOLUTION NO. 15-5137SA
RESOLUTION OF THE BOARD OF DIRECTORS OF THE SUCCESSOR
AGENCY TO THE TEMPLE CITY COMMUNITY REDEVELOPMENT
AGENCY AUTHORIZING THE ISSUANCE AND SALE OF TAX
ALLOCATION REFUNDING BONDS , AND APPROVING THE FORM OF AN
INDENTURE OF TRUST AND AUTHORIZING CERTAIN OTHER ACTIONS
IN CONNECTION THEREWITH
WHEREAS , the Temple City Community Redevelopment A gency (the "Former
Agency") was a public body , corporate and politic , duly created , established and authorized
to transact business and exercise its powers under and pursuant to the provisions of the
Community Redeve lop ment Law (Part 1 of Division 24 of the Hea lth and Safety Code of th e
State of California) (t he "Law"), and the powers of the Former Agency included the power to
issue bonds for any of its corporate purposes ; and
WHEREAS , a Redevelopment Plan for a redevelopment project known and
desig nated as the "Rosemead Boulevard Redevelopment Proj ect" has been adopted and
approved by Ordina nce No . 72 -350 of th e City of Temple City on May 16 , 1972 , as amended
to date , and all requ irements of law for and pre ceden t to the adoption and approval of the
Redevelopment Plan, as amended , have been duly com plied with ; and
WHEREAS , the Former Agency has pre viously issued its Temp le City Community
Redeve lopm e nt Agency Rosemead Boulevard Redevelopment Project , Tax A llocation
Refunding Bonds , Series 2005 , currently outstand ing in the aggregate principal amount of
$4 ,870,000 (th e "Re funded Bonds"); and
WHEREAS , on June 28 , 2011 , the California Leg is lature adopted ABx1 26 (the
"Dis so lution Act") and ABx1 27 (the "Opt -in Bill "); and
WHEREAS , the California Supreme Court subsequently upheld the provis io ns of the
Dissolution Act and inva lidated the Opt-in Bill resulting in the dissolut ion of the redevelopment
component of the Former Agen cy as of February 1, 20 12 ; and
DOCSOC/173 I 504 v2/2006S 1-000 I
WHEREAS , the Former Agency , including its redevelopment powers , ass ,~ts and
obligations , was transferred on February 1, 2012 to the Successor Agency to the Temple City
Community Redevelopment Agency (the "Successor Agency"); and
WHEREAS , on or about June 27 , 2012 , AB1484 was adopted as a trailer bill in
connection with the 2012-13 California Budget; and
WHEREAS , AB1484 specifically authorizes the issuance of refunding bonds by the
Successor Agency to refund the bonds or other indebtedness of the Former Agency to
provide savings to the Successor Agency, provided that (A) the total interest cost to maturity
on the refunding bonds plus the principal amount of the refunding bonds shall not exceed the
total remaining interest cost to maturity on the bonds to be refunded plus the remaining
principal of the bonds to be refunded , and (B) the principal amount of t he refundinn bonds
shall not exceed the amount required to defease the refunded bonds , to establish cu:.tomary
debt service reserves, and to pay related costs of issuance; and
WHEREAS , for the corporate purposes of the Successor Agency , the Successor
Agency desires to iss ue at this time tax allocation refunding bonds (t he "2016 Bonds ") in an
aggregate principal amount sufficient to refund all or a portion of the Refunded Bonds , and to
irrevocab ly set aside a portion of the proceeds of such 2016 Bonds in a separate segregated
trust fund which will be used to refund the outstanding Re fund ed Bonds being refunded , to
pay costs in con ne ction with th e issuance of the 2016 Bonds and to make certain other
deposits as required by th e Ind e nture (as defined below); and
WHEREAS , the 2016 Bonds shall be secured by a pledge of property tax revenues
authorized by Califo rnia Health and Safety Code Section 34177 .5(a ) and (g), pursuant to the
provisions of Article 11 of Chapter 3 of Part 1 of Division 2 of Title 5 of the California
Government Code (the "Bond La w "); and
WHEREAS , the Successor Agency wishes at this time to approve matters re!at ing to
the issuance and sa le of th e 2016 Bonds;
BE IT HEREBY RESOLVED by the Successor A gency as follows :
SECTION 1. Subject to the provisions of the Indenture referred to in Section 2 hereof,
the issuance of the 2016 Bonds in an aggregate principal amount sufficient to refund all or a
portion of th e Refunded Bonds for th e purpose of achieving debt service savings in
ac co rdance with Health & Safety Code Section 34177 .5(a)(1) and the pledge of property tax
reve nues to the 2016 Bonds pursuant to the Indenture approved by Sect ion 2 of this
Resolution (as authorized by California Health and Safety Code Section 34177 .5(a) and (g))
is hereby approved on the t erms and conditions set forth in , and subject to the limitations
specified in , the Indenture. The 2016 Bonds will be dated , will bear interest at the rates , wi ll
mature on the dates , will be issued in the form , will be subject to redemption , and will be as
otherwise provided in the Indenture , as the same will be completed as provided in this
Resolution . The proceeds of the sale of the 2016 Bonds shall be applied as provided in the
Indenture . The 2016 Bonds may be issued as a single issue, or from time to time , in separate
series , as the Successor Agency shall determine . The approval of the issuance of the 2016
Bonds by the Successo r Agency and the Oversight Board shall constitu te the approva l of
each and every sepa rate series of 2016 Bonds and the sa le of the 2016 Bonds at a pub lic or
private sale , without the ne ed for any further approval from the Oversight Board .
SECTION 2. The Ind enture of T r ust in substantially the form submitted at th is
meeti ng and made a part hereof as though set forth in full herein (t he "Indenture "), is hereby
approved . The C hairman of the Successor Agency, the Executive Director of the Successor
Agency and the Secretary of the Successor Age ncy (or the designees of either) are hereby
authorized and directed to exec ute and deliver the Indenture in the form presented at th is
meeting with such changes , insertions and omissions as may be re quested by Stradling
Yocca Carlso n & Rauth , a Professional Co rporati o n, as Bond Counse l, and approved by the
Chairma n or the Executive Director , said execution being conclusive evidence of such
approval.
SECTION 3. The Chairman of the Successor Age ncy , th e Executive Di rec tor of the
Successor Agency , the Finan ce Directo r of the Successor Agency , the Secretar;' of the
Successor Agency, and any other proper officer of the Successor Agency (each , an
"Au thorized Officer"), acting singly , be and each of them hereby is authorized and directed to
execute and deliver any and all documents and instruments , relating to the 2016 Bonds , and
to do and cause to be done any and all acts and things necessary or proper for carrying out
the transactions co ntemplated by th is Resolution and the Indentu re , including, as necessary ,
the preparation of a Bond Purchase Contract, a Private Placement Memorandum , a
Placement Age nt Ag reement , a Rate Lock Agreement, an Officia l Statement, a Continuing
Disclosure Certificate, an Escrow Ag reement for th e Refunded Bonds and any aciditional
agreements as may be required to carry out the purposes hereof. The form of each of the
documents shall be presented to the Successor Agency at a future meeting for approva l.
SECTION 4 . The Bank of New York Mellon Trust Company, N.A., is hereby
appointed as Trustee. The Executive Director of the Successor Agency or any other
A uthorized Officer is hereby authorized to enter into a contract with the Trustee for the
purpose of providing its services .
SECTION 5. The 2016 Bonds may be sold by negotiated sale pursuant to an
agreement between the Successor Agency and Jeffries , LLC (the "Underwrite r"). The
Executive Director of the Successor Agency or any other A uthori zed Officer, acting on behalf
of the Successor Age ncy, is hereby authorized to evalua te and determine whether to
(a) negotiate the terms of and enter into a Bond Purchase Agreement with the Underwriter to
provide for the sale of the 2016 Bonds to the Underwriter and th e Underwriter's sale of the
bonds to investors through a public offering or (b) negotiate the terms of and enter into a
Placement Agent Agreement with the Underwriter, pursuant to which the Underwriter will act
as Placement Agent for the Bonds on behalf of the Successor Agency and to negotiate the
terms of the private placement thereof with the purchaser of the Bonds .
SECTION 6. The Executive Director of the Successor Ag ency or any other
Authorized Officer, acting on behalf of the Successor Agency , is hereby authorized to
eva luate and determine whether to (a) procure a municipal bond insurance poli cy ("I nsurance
Policy") and /or a municipal bond debt service reserve fund surety or policy (a "Heserve
Policy") with respect to the 2016 Bonds , and (b) to negotiate and enter into such contracts or
agreements as may be necessary and appropriate to serve such Insurance Policy and /or
Reserve Policy .
SECTION 7 . This Resolution shall take effect im mediately upon its adoption .
IN WITNESS WHEREOF , this Resolution is adopted and approved the 151h day of
December, 2015 .
Chair of the Successor Agency to the
Temple City Community Redevelopment Agency
ATTEST:
Secretary of the Successor Agency to the
Temple City Community Redevelopment Agency
I NDENTURE OF T R UST
Dated as of April1 , 2016
by and between the
ATTACHMENT B
Strad lin g Yocca Carlson & R auth
Draft of 12/7/15
SUCCESSOR AGENCY TO THE TEMPLE CITY
COMMUNITY REDEVELOPMENT AGENCY
and
THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,
as Trustee
Relating to
$. ___ _
S ucc essor Agency to th e Temple C ity Com munity Redevelopment Agency
Tax All ocation Refunding Bonds, Series 2016
Section 1.0 I
Sectio n 1.02
Sect ion I .03
Sec tion 2.0 I
Section 2.02
Section 2.03
Section 2.04
Section 2.05
Section 2 .06
Section 2.07
Section 2.08
Sect ion 2.09
Section 2.1 0
Sect io n 2.1 I
Section 2.12
Section 3.0 I
Sect ion 3.02
Secti o n 3.03
Section 3.04
Section 3.05
Section 3.06
Section 4.0 I
Section 4.02
Section 4.03
Section 4.04
Section 4.05
Section 4 .06
TABLE OF CONTENTS
ARTICLE I
DETE RM INA TIO N ; D EF JN ITIO
Page
Find ing s and Determinat io ns ..................................................................................... 2
De fi ni tions .................................................................................................................. 2
Ru les of Construct io n .............................................................................................. 12
ARTI CLE II
AUTHO RI ZAT IO A D T ERM S
Authoriza ti on of20 16 Bonds ................................................................................... l 2
Terms of 20 16 Bonds ............................................................................................... 12
Redempt io n of2 0 16 Bonds ..................................................................................... 13
Form of2016 Bonds ................................................................................................ 14
Executi on ofBonds .................................................................................................. l4
Transfer of Bonds .................................................................................................... 14
·Exc hange of Bonds .................................................................................................. 15
Registrati on of Bon ds .............................................................................................. 15
[R ese rved] ................................................................................................................ 15
Bonds M ut i Ia ted, Lost, De stro ye d or Sto le n ............................................................ 15
Book-Entry System .................................................................................................. 15
Applicab il it y of Prov isio ns to Additional Bonds ..................................................... 17
ART ICLE Ill
DEPO S IT A D APPLICATIO ; AD DITlO AL DEBT
Iss ua nce of Bonds .................................................................................................... 17
Ap p li cat io n of Pr ocee ds of Sa le a nd Ce rt a in Oth er Amounts .................................. 17
Costs of Iss uance Fu nd ............................................................................................ 17
Refunding Fund ....................................................................................................... 18
Iss uance of Parity Debt ............................................................................................ 18
Issuance of Subordinate De bt .................................................................................. 18
ART ICLE IV
SECURITY OF BONDS; FLOW OF FUN DS
Security of Bonds; Eq ua l Sec urity ........................................................................... 18
Redeve lopm ent Obligation Retirement Fund; Special Fund ; Deposit of
Pledged Tax Reven ues ............................................................................................. 19
De po s it of Amounts by Tru s te e ............................................................................... 20
Rebate Fund ............................................................................................................. 23
Prov is ions Re la tin g to In s ura nce Po licy .................................................................. 24
Provis ions Re la tin g to Re se rve Po li cy ..................................................................... 24
Section 5.0 I
Section 5.02
Sectio n 5.03
Section 5.04
Sec ti on 5.05
Sec ti o n 5.06
Section 5.07
Section 5.08
Sect io n 5.09
Sec tion 5.10
Sect ion 5.11
Sect ion 5.12
Sect ion 5.1 3
Section 5.14
Section 5.15
Section 6.0 I
Sect ion 6.02
Section 6.03
Section 6.04
Sec ti on 6.05
Section 6.06
Section 6.07
Section 6.08
Section 6.09
Section 7.0 I
Section 7.02
Section 7.03
Section 7.04
Section 7.05
Section 7.06
Sec ti on 8.0 I
Sect ion 8.0 2
Section 8.03
Section 8.04
Section 8.05
Section 8.06
ARTI CLE V
OTHER COVENANTS OF THE SUCCESSOR AGENCY
Punctual Paym ent. .................................................................................................... 24
Lim ita tion on Additiona l In debtednes s; Against Encumbrances ............................. 25
Extens ion of Payment .............................................................................................. 25
Payment of C laim s ................................................................................................... 25
Books and Accounts ; Fina ncial Statements ............................................................. 25
Protection of Security a nd Right s of Owne rs ........................................................... 26
Pa yme nt s of Taxes and Other Cha rges .................................................................... 26
Taxation of Leased Property .................................................................................... 26
Disposit io n of Property ............................................................................................ 26
Ma intenance of Pledge d Tax Reve nues ................................................................... 26
Tax Cove nant s ......................................................................................................... 26
Co ntinuin g Di sc los ur e ............................................................................................. 27
Com plian ce w ith the Dissolution Act ...................................................................... 27
Furt her Ass ur ances ................................................................................................... 28
La st and F inal Recog ni ze d Obli gatio n Pa yment Schedule ...................................... 28
ARTTCLE VI
THE TRUSTEE
Duties , Immuni ties and Liabilities ofTru stee .......................................................... 29
Merger or Conso lid ati on .......................................................................................... 3 1
Liabi I ity of Tru stee .................................................................................................. 31
Right to Rely on Docu men ts and Opinions ............................................................. 33
Prese rv ation and In s pection of Document s .............................................................. 34
Co mpen sati o n and In de mnifi cation ......................................................................... 34
Deposit and In vestme nt of Moneys in Fund s ........................................................... 34
Acco untin g Re co rd s and Financial Statements ........................................................ 35
Other Tran sac ti ons with Agenc y .............................................................................. 35
ARTI CLE Vll
MOD IFl CATIO OR AMENDME T OF THIS I DE TURE
Ame ndm ent With And Without Co nsent of Own ers ............................................... 36
Effec t of Suppl eme ntal Ind enture ............................................................................ 36
Endorse me nt or Replacement of Bo nd s Afte r Amendm en t... .................................. 37
Ame ndm ent by Mutua l Co nsent .............................................................................. 37
Opin io n of Co un se l .................................................................................................. 3 7
Co py of Supplemental Ind e ntu re to S&P and Mo ody's .......................................... 37
ARTI CLE Vlll
EVENTS OF DEFAULT AND REME DIES O F OWNERS
Eve nt s of De fault and Acceleration of Maturitie s ................................................... 37
App li cation of Funds Upo n Accelera ti on ................................................................ 39
Powe r of Trustee to Co ntrol Proceed in gs ................................................................ 39
Limitati o n on Owner 's Ri ght to Sue ....................................................................... .40
Non -Waiver .............................................................................................................. 40
Act ions by Tru s tee as Attorney-in-Fac t .................................................................. .41
II
Section 8.07
Section 8.08
Section 9.0 I
Section 9 .0 2
Section 9.03
Section 9.04
Section 9.05
Section 9.06
Secti o n 9.07
Sect ion 9.08
Section 9.09
Section 9 .I 0
Section 9.1 I
Section 9.12
Section 9.13
EXHIB IT A
Re1ned ies Not Exc lu s ive .......................................................................................... 41
D e te rminatio n of Percentage of Bo nd owne rs ......................................................... .41
ARTIC LE 1X
M I SCELLANEOUS
Spec ia l Obligati o ns .................................................................................................. 4 1
Be nefits Limited to Parties ...................................................................................... .41
S uccesso r is D eeme d In c luded in A ll Refe re nces to Pre d ecesso r ............................ 41
D isc harge of Jndenture ............................................................................................. 4 2
Executio n o f Documents and Proof o f Ownersh ip b y Owners ................................ 43
Di squalified B o nd s ................................................................................................... 43
Waive r of P e rsona l Li ab i li ty .................................................................................... 44
D estr uctio n of Cance l ie d Bonds .............................................................................. 44
Notices ..................................................................................................................... 44
Partia l Jnva lid it y ....................................................................................................... 44
Unc la itn e d M o n eys .................................................................................................. 45
Executio n in Counte rparts ........................................................................................ 45
Govern i ng Law ........................................................................................................ 45
FORM OF 2 0 16 BOND ......................................................................................... A-1
iii
IN DENTURE OF TRUST
THI S I DEN T U RE OF TRUST (thi s "In denture ") is made and ente red in to a nd dated as of
____ , 20 16, by and between the SUCCES OR AGEN C Y TO T HE TEM PLE C ITY
COMMU ITY RE DE VELO PME T AGENCY , a publi c entity duly ex isting under the laws of the
State of Ca lifo rnia (th e "S uccesso r Age nc y"), as successo r to th e redeve lop me nt act ivitie s of the
Te mpl e C ity Co mmun ity Redevelopme nt Agen cy (t he ·'Form e r Agency ") and THE BANK OF NE W
YORK MELLON TRUST COMPA Y, N .A., a nat io na l bank in g association duly o rga ni zed a nd
ex isting und e r the laws of th e United States of America , as tru s tee (the "Trus tee");
WITNESSETH:
WHE REAS, th e Fonne r Agency is a publi c body , co rp o rate a nd pol itic , du ly established and
aut hori zed to tran sac t bus in e ss and exe rc ise powers und er and pur suant to the prov is io ns of Part I of
Div is io n 24 o f the Hea lth and Sa fe ty Code of th e Sta te (co ll ectiv ely , as a mended , the "Law"), inc luding
the power to iss ue bonds a nd in cu r debt for a ny of it s corpora te purp oses;
WHEREAS, Redeve lopme nt Plan for th e Rose mead Bou levard Redeve lopment Project (t he
"Red evelopment Pr oject") of the For me r Age ncy were adopted a nd subsequentl y amended , in
co mpl iance with a ll req uirements of the Law, and a ll requirements of law fo r a nd precedent to t he
adoption and approva l of th e Redeve lo pme nt Pl a n, as ame nd ed, have been du ly co mpli ed w ith ;
WHEREAS, in o rd e r to fin ance a nd refi nance redeve lo pm ent activ iti es w ithin or of benefit to
the Redevel op ment Project, the Forme r Age ncy issued certai n outsta nding bonds more fully described
here in (co ll ective ly, th e "Re fun ded Bo nd s");
WHE REAS, by implementatio n of Ca liforn ia Asse mbly Bi ll X I 26, whi ch amended
prov isions of the Law, a nd th e Ca lifo rnia Supreme Co urt 's dec ision in Ca lifornia Redevelopment
Association v. Matosantos, th e redeve lopmen t com po ne nts of th e Former Age ncy we re d isso lved o n
Feb ru a ry I, 20 12 in acco rd a nce w ith Ca lifo rni a Assemb ly Bi ll X I 26 a pproved by the Governo r of the
Sta te of Ca lifo rnia o n Jun e 28, 20 II (as a me nd ed, t he "Disso lut io n Act"), and o n February I, 20 12,
the Successo r Agency, in accordance w ith a reso lution adop ted by the C it y Co un ci l of the C it y on
November I , 20 11 a nd pursuant to the Di sso luti on Ac t, ass umed certain redevelop ment components,
inc lu ding t he redeve lop me nt re lated duties and o bli ga ti ons, of the Fo nner Age ncy as prov ided in t he
Dis so lution Ac t , inc.ludin g, w itho ut lim itat ion, th e ob liga t io ns of the Fo rme r Age ncy under the
Refu nd ed Bond s a nd the rel ated docum e nt s to w hi ch th e Former Age ncy was a pa rty;
WHEREAS, Sect io n 34 177.5(a)( I) of th e Ca lifo rnia Hea lth a nd Safety Code auth o ri zes the
Suc cessor Agency to und e rtake pr ocee d ings for the refu nding of outstand in g redeve lo pmen t re lated
bonds and oth e r obl iga ti ons of th e Former Agency. subjec t to the conditions precedent conta ined in
sai d Section 34177 .5;
WHEREAS, said Sec ti on 34 177.5 a lso a uth o ri zes the Successor Age ncy to iss ue bond s
pursua nt to Artic le 11 (commencin g w ith Sect io n 53580) of C hapter 3 of Part I of Di vision 2 ofTitle 5
of the Governme nt Code (the "Refund in g Law") for the purpose of achieving debt se rvice sav in gs
within th e parameters set forth in sa id Sec ti o n 34177.5;
WHEREAS , in order t o provide mo neys to refund the Refund ed Bonds (as defined herein) fo r
th e purpose of prov iding debt se rvice sav in gs in accordance w ith Section 34 177.5(a)( I), the Successor
Age ncy has de te rmined to iss ue it s Tax Allocat io n Refunding Bond s, Se r ies 20 16 (th e "20 16 Bond s'');
WHEREAS, the 20 16 Bonds wi II be iss ued pursua nt to and in accordance with th e prov is io ns
of Sec ti o n 34 177.5(a)(l) ofth e Ca li fo rni a Health and afe ty Cod e, the Law and th e Refundin g Law;
WHEREAS, in orde r to provide fo r th e authent icat ion and del ive ry of the 20 16 Bond s, to
esta bli sh and dec la re th e term s a nd co nditi o ns up o n whi c h the 2016 Bond s are to be iss ued and sec ured
and to sec ure th e payment of th e prin c ip a l th e reof a nd interest and redemption pre mi um (if any)
thereo n, th e Successo r A ge ncy and th e Trustee have dul y a uth ori zed the exec uti on and delivery of th is
Ind enture; a nd
WHEREAS, th e Successo r Agency has det e rmin ed that a ll acts a nd proceedings re quired by
law necessa ry to make the 20 16 Bon d s when executed by the Successor Age ncy, a nd authenticated
a nd de li ve red by the Trustee, th e va li d, b in d in g a nd lega l spec ia l ob ligat io ns of th e Successor Agency,
a nd to co nstitute thi s Ind enture a lega l, va lid and bindin g ag reement for th e uses and purp oses here in
set forth in accordance with it s term s, have been do ne or tak e n;
NOW, THEREFORE, THIS INDENTURE WITNESSETH, t hat in o rder to secure t he
payme nt of the prin c ipal of a nd the int e rest a nd redempt io n premi um (if any) o n al l the Bonds (as
defin ed be low), in c ludin g th e 20 16 Bo nd s, iss ued a nd O ut sta ndin g un de r this Indenture, according to
th e ir ten or , and to se cure th e pe rfo rm a nce and o bserva nce of a ll th e cove na nt s a nd co nditi o ns t here in
and he rein set fort h, and to dec lare th e term s and co nditi ons upon and s ubject to w hi c h th e Bo nd s,
including th e 20 16 Bo nds, a re to be iss ued and rece ived, a nd in co ns ideration of th e premises a nd of
the mutual cove nants he re in co ntai ned and of t he purcha se a nd acceptance ofthe Bonds. in c ludin g the
2016 Bo nd s, by th e Own e rs th e reof, a nd for othe r va lu a bl e co ns iderat io ns, th e receipt of whi ch is
he re by acknow ledged , the Successo r Age ncy and th e Tru s tee do he re by covenant and agree w ith o ne
a noth e r, for t he be nefit of th e respect iv e Owners from tim e to tim e of the Bond s, in c lu d in g t he 20 16
Bond s, as fo ll ows :
ARTICLE I
D ETERMINATIONS; DEFINITION S
Section 1.01 Findings a nd Dete r·mination s. The S uccesso r Age ncy has rev iewed al l
proceedings he retofore taken and , as a res u It of s uc h rev iew, he reby find s a nd determ in es th at a II thin gs,
cond iti o ns a nd acts requ ired by law to ex ist, ha pp en o r be pe rfo rm ed precedent to a nd in co nn ecti o n
w ith th e iss uance of the 2 016 Bo nd s do ex ist, have happe ned and have been performed in due t im e,
form a nd ma nn e r as required by law, a nd th e Successor Age nc y is now duly empowered, pursuant to
each a nd eve ry requirement of law, to iss ue the 20 16 Bond s in th e ma nn e r a nd form provided in t hi s
Ind e nture.
Section 1.02 Definition s. Unl ess th e context o th e rwi se requires, the term s defined in t hi s
Secti o n I .02 s ha ll , fo r a ll purposes o f thi s In denture , o f a ny Supp lemental Ind e nture, and of any
ce rtifi ca te , op ini o n o r ot her document he re in menti one d, ha ve th e mea nin gs here in speci fi ed .
·'Bonds'' mean s th e 20 16 Bond s a nd a ny Parity De bt iss ued pursuant to a Supp lementa l
Ind e nture.
2
"Bond Counsel " mean s (a) Strad lin g Yocc a Ca rlso n & Rauth , a Pr ofess iona l Co rp ora ti o n, or
(b) any o th e r atto rn ey o r firm o f a tt o rn eys appointe d by or acceptab le t o th e Succe sso r Age ncy, of
nationall y-recogni zed experi e nce in th e iss uan ce o f ob li ga ti ons th e int e rest o n wh ic h is exc lud a bl e
fr om g ross income fo r feder a l in co me tax purposes und e r th e Code .
"Bond Yea r " mea ns each twe lve (1 2) mo nth pe ri o d ex te nding from September 2 in o ne
cal e nd ar yea r to e pte mbe r I o f th e succ eedin g cal end a r ye ar, bot h dates inc lu sive ; prov ided tha t the
firs t Bo nd Y ca r w ith re s pe c t to th e 20 16 Bond s sha ll co mm e nce o n th e C los in g Date a nd e nd o n
September I , 20 16.
"Business Da y" mea ns any day, ot her t ha n a atu rday o r Sund ay or a day on whi c h comme rc ia l
ba nk s in ew York , New Yo rk. o r any o ther city or c iti es w he re th e Prin c ipa l Co rpo ra te Tru st O ffi ce
of the T rustee is loc at ed arc requ ired o r a uth o rized by law to c lose o r a day on whi ch the Federa l
Re se rv e Sys te m is c losed .
"C ity" mea ns th e C ity o f Te mpl e C it y.
"C lo si ng Date" mea ns th e date on whi ch a se ri es of Bo nd s is d e li ve re d by th e uccesso r
Age nc y to t he o ri g inal purchase r t he reof. Th e C los in g Date w it h respect to th e 2016 Bonds is
___ ,20 16 .
"Cod e" mea ns the Inte rn a l Reve nue Co de o f 1986 a s in effec t o n t he da te o f issuance of th e
20 16 Bond s o r (except a s ot her w ise refere nce d here in ) as it ma y be a me nd ed to apply to ob li ga ti o ns
iss ued on th e da te of iss uan c e of t he 20 16 Bonds, toge ther w ith a ppl icab le pro pose d, te mpo ra ry a nd
fina l regul a t io ns pro mu lga ted, and a ppli cable o ffi c ia l pu b li c gui da nce pub lished , und e r th e Code .
"Continuin g Disclos ure Ce rtificate" means that ce rta in Co nt inu in g Di scl os u re Certi fica te,
w ith re s pec t to th e 20 16 Bo nd s, exec ut ed by th e Successo r Age ncy, as o ri gina ll y exec ut ed a nd as it
may be ame nde d f ro m t im e to tim e in a cc ordance w ith t he te rm s th e reof.
"Cos ts of Iss uan ce" mea ns a ll item s o f ex pe nse directl y o r indi rectl y payab le by o r
reimbursa bl e to th e Successo r Agency re la tin g to th e a uth o ri zati on, iss ua nce, sa le and de li ve ry of t he
Bo nd s, in c lu d in g bu t not limit ed to printin g expe nse , bo nd in s ur a nce and surety bond pre mi ums, if
a ny, ra tin g age ncy fees, filin g a nd re co rd in g fees. initi a l fees a nd c harges a nd fi rst annua l
a dmini strati ve fe e of the Trus tee and fees and e xpenses o f it s co unsel, fees, charges a nd d isburseme nts
of a ttorn eys, fin anc ia l advi so rs, acco untin g firm s, co nsult a nt s and ot he r pro fessio nal s, fees a nd c ha rges
for pre par a t io n, ex ec uti o n and sa fe ke epin g of the Bo nd s, adm ini strati ve cos ts of t he Succe ssor Agen cy
and the C it y in c urred in conn ec ti on w ith th e iss ua nce of th e Bo nd s, e x pe nses of th e un de rwrit ers of th e
Bo nd s, a nd a ny other co st, c harge or fee in conn ecti o n w ith the ori g in a l iss ua nce of th e Bonds.
"Costs of I ssua n ce Fund'. mea ns th e fund by th at na me esta bl ished a nd hel d by t he Tru stee
purs ua nt to Secti o n 3.03.
"Co un ty " means th e Co unty of Los Ange les.
"De bt Ser v ic e F und" mea ns th e fund by th a t na me esta b lis hed a nd held by t he Tru st ee
pu rsuant t o ecti on 4.03.
3
"Defeasance Obligations" mean s any of the fo ll ow in g which . at the time of inve stment , are
le ga l inve stment s under the laws of the Sta te fo r the mo ne ys proposed to be in ve sted therein and are in
co mpliance w ith the Successo r Agency's in ve stm e nt po lici es then in effect (pro vided th at th e Tru st ee
sha ll be e ntitl ed to rely up o n an y in ves tment direc ti o n fr o m the Succe sso r A gency as concl usiv e
ce rtifi ca ti on to th e Tru s tee th a t in vestme nt s described th e re in are lega l and a re in com pli a nce w ith the
Succe sso r Age ncy's investm e nt po li cie s then in effec t), but only to t he ex te nt the sa me are acq uired at
Fa ir Market Value:
(a) Cas h;
(b) Fe de ral ec untJ es, in c ludin g direc t ob li ga ti o ns of th e Trea su ry whi c h have
bee n stripp ed by the Trea s ur y itself, CA TS , T IGR a nd s imil a r sec uri t ies ;
(c) The interest co mp one nt o f Reso luti o n Fundin g Corpo ra ti on s tri ps w hich have
bee n s tripped by reque st to th e Federal Res erve Bank of ew York in boo k-e ntry fo rm ;
(d) Pre-refunded municip a l bond s rated "Aaa " by Moo dy's a nd "AAA' by S&P ,
provid ed th at, if th e issue is rated o nl y by S&P (i.e., th e re is no Moody's ratin g), t he n t he pre-refunded
muni c ip a l bo nd s mu st have bee n pre-re funded with cash, d irect U.S. o r U.S. guaranteed ob li gatio ns,
or AAA rated pre-refunded muni cipa ls; and
(e) Bond s, de bentures , notes or othe r evidence of ind e bte dn ess iss ued or
guaranteed by a ny of the fo ll ow in g fede ra l agenc ies and pro v ided s uch o bli ga ti o ns a re ba c ke d by th e
fu ll fa ith a nd c re dit of the United State s of Ameri ca (s tripped securiti es a re onl y permitted if they have
been stripped by the age nc y it se lf): (i) direct ob li ga ti o ns o r full y g uara nt eed certifi cate s of be nefic ia l
owner ship of th e U.S. Exp ort-Im port Ba nk ; (ii) ce rtifi ca te s of beneficial ow nershi p of th e Fa rm e rs
Ho me Admini s trati o n; (iii) pa rti c ip a ti o n certifi cate s of th e Ge ne ral Se rv ices Adm ini strati on;
(iv ) Federa l Finan c in g Ba nk bo nds and de be ntures; (v) guara nteed Titl e X I financ in gs of the U.S.
Maritim e Admi ni stration ; an d (v i) project notes, loca l a uth o rity bo nd s, new co mmuniti es d ebe ntures
and U.S. publi c ho usin g note s a nd bo nd s of th e U .. De pa rtm ent of Ho usin g and Urb a n Deve lo pment.
"Department of Finance'· mea ns th e De pa rtm e nt of F in ance of the ta te of Ca lifornia.
"Depos itory" means (a) initi a ll y, DT C, a nd (b) any othe r Securities Dep os itory act in g a s
De pos it o ry purs uant to Secti on 2 .11 .
"Depository System Participant" mea ns any partic ipant 1n the Dep os ito ry's boo k-e ntry
system .
"Di sso lution Act" mea ns Ca lifo rnia Asse mb ly Bill X I 26 appro ve d by th e Governor of the
Sta te of Ca lifo rnia on Jun e 28, 2 011 , as it has he re to fore been am e nd ed and as it may he rea fter be
ame nd ed .
"DTC' mean s The Depos it o ry Trust Co mp a ny, ew Yo rk, New York, a nd its s uccesso rs a nd
ass 1gns.
"Escrow Agreement" mean s th e escrow agreeme nt by and be twee n the Successo r Agency a nd
th e Esc row Bank dated the C losin g Date a nd re lati ng to the 2005 Bond s.
4
"Esc row Bank" sha ll mean The Bank ofNew York Mell on Tru st Co mpa ny, N.A ..
"Eve nt of Default" mea ns any o f t he events de sc ribed in Sect io n 8.0 J.
"Fai r Market Value" means t he pr ice at w hi c h a w illin g buyer wo uld purcha se the inve s tment
fr om a willing sell e r in a bona fid e, arm·s le ngth tra nsacti on (dete rmin ed as o f the date the contract to
purc hase o r se ll th e in ves tm ent be co mes b indin g) irth e in vestment is traded o n an esta bli shed securi tie s
market (w ithin the mean in g of Sec ti on 1273 of the Code) a nd , o th e rwi se, the term "Fair Market Value''
mean s the acqu is it ion pri ce in a bo na fide a rm 's length t ransacti o n (a s refe renced ab ove) if (i) the
inve stm ent is a ce rtificate of deposit that is acqu ired in acco rdance wi th app li cab le regul ation s un der
th e Code, (ii ) th e in ves tm e nt is an agree me nt wit h spec ifi ca ll y negotiated w ithdrawal or re in ves tment
provision s and a s peci fi ca ll y ne go tiated inte rest rate (for exa mp le , a g uaranteed inve s tm e nt co ntract, a
forward s uppl y co ntrac t or ot her in ves tmen t agreement) that is acquired in accorda nc e w it h a ppli ca ble
re gu la ti ons under the Co de, (iii ) th e inve stment is a United State s Treas ury Sec uri ty --Stat e a nd Loca l
Gove rnm ent Series that is acqu ired in acco rdance w ith ap plicab le regulati ons of th e United tates
Burea u of Pub lic De bt, or (i v) a ny com min g led in ves tm ent fund in which th e S ucce sso r Agency a nd
re lated pa rtie s do no t own more tha n a te n pe rcen t (I 0%) benefic ial in te rest th ere in if th e ret urn paid
by th e fund is wit ho ut rega rd to th e so urc e of th e in vest me nt.
"Fed e ral Securities" mea ns any direct, no ncallable ge nera l o bli ga ti o ns of t he Un it ed tates of
Amer ica (inc ludin g o bli ga ti ons iss ued or he ld in bo ok -entry form o n the books o f the Department of
th e Trea s ur y of th e United States of Ame ric a and CATS a nd TGRS), o r ob ligation s th e pay ment of
prin c ipa l of and in te rest o n whi ch a re directly o r in d irectl y guara nt eed by the Un it ed States o f America.
"Fisca l Year" means any twe lve-month per iod beg innin g o n Jul y I in any year and ex tending
t o the next s ucceeding Jun e 30 , both dates in c lu sive, o r a ny o th er twe lve month peri od se lected a nd
des ignated by the S uccessor Age ncy to th e T ru stee in writin g a s it s offici a l fi sca l year pe ri od.
"Forme r Age ncy" means the Tem pl e C it y Co mmunity Redevelopment Agenc y.
"Indenture " mea ns thi s In denture of Trust by a nd be twee n t he uccessor Agenc y and t he
Tru ste e, as orig ina ll y ente red int o o r as it ma y be amended or s upp leme nt ed by a ny Supp le mental
Indenture e ntered int o pursua nt to th e prov is ions hereof.
"Inde pe nde nt Acco unta nt" mea ns an y acco unt a nt or firm of s uc h accou ntants dul y lice nsed
o r registe red or e ntitl ed to practic e as s uc h un der th e laws of th e St ate, appoi nted by th e ucce sso r
Age nc y, and w ho, o r each of who m :
(a) is in fact independ ent and not und e r domin a ti o n of the Succe sso r Agency o r
the C ity;
(b) do es not have any s ub stant ia l in terest, direct or indirec t, w ith the S uccesso r
Age nc y or th e C it y; and
(c) is not con nec ted w it h th e S uccesso r Age ncy o r th e C it y as an o fficer o r
employee of th e ucc esso r Agency or the Ci ty, but w ho may be reg ul a rly reta in ed to make re po rts to
the Successo r Agency or th e Ci ty.
5
"Indepe ndent Redevelopment Consultant" mea ns any con s ult ant o r firm o f s uch con s ulta nt s
a pp o int ed by the S ucc esso r Agency, a nd w ho, o r each o f whom:
(a) is judged by th e Suc cesso r Age ncy to have ex peri ence in matters relatin g to the
co ll ecti o n o f Pl edged Tax Reve nu es o r o ther wise wi th re s pect to th e financi ng of red evelopment
projects;
(b) is in fac t in de pend ent and not un de r dom in a ti o n of th e Succe sso r Age nc y or
th e City;
(c) does not have a ny s ubs tantia l interes t, direct or indirec t, w ith the uccesso r
Age nc y o r the C it y; and
(d) is no t co nn ec ted with th e uccesso r Age ncy o r the C ity as an o ffi ce r or
e mpl oyee of th e S uccessor Age ncy or t he C ity, but who may be reg ularly reta in e d to make repo rt s to
the Successor Age nc y o r th e C ity.
"In fo rm ation Services .. mea ns, in accorda nce w ith t he n current g uid e lin es of the Secu riti es
and Exc hange Co mmi ss ion , such se rvices providin g info rm a tion with respect to the redempt io n of
bonds as th e Successo r Agency may des ignate in a Writt e n Req uest of the uccesso r Agenc y ti led w ith
th e Tru stee .
"In s ured Bonds" mea ns th ose Bond s in s ure d und er a muni c ip al bo nd or fin a nc ia l guaranty
in surance po li cy, in cluding the 20 16 In sured Bond s.
"In s urance Policy" mea ns th e Mun ic ip a l Bo nd In suran ce Po li cy iss ued by the 20 16 In surer
that guara nt ees th e sched ul ed paymen t o f prin c ip a l of and int e rest on the ln sured Bond s when due .
"In s ure d Bonds" mea ns th e 2 0 I 6 Bond s [m a turin g on and after Septe mbe r I , 20_.]
"Insurer'' mea ns the 20 I 6 In surer and , a s app licab le, th e pr ovide r of a mun ic ipal bond o r
financ ia l guara nty in suran ce po li cy w ith re s pect to oth e r Bo nd s.
"Inter·es t Account" mea ns th e acco unt by t ha t name e stabli s hed and he ld by th e Tru stee
purs ua nt to ec tion 4.0 3(a).
"Interest Payment Date" mea ns e ach M arc h I and Se ptember I , co mm e nc in g _____ I ,
20 16, fo r so lo ng a s any of th e Bo nd s rema in Outs ta ndin g he re und er.
'·Last and Final ROPS'. mea ns a La st a nd Fin a l Recogn ized Obligatio n P ayment Schedu le
a uth ori ze d by Section 34 19 1.6 of th e Di sso luti o n Act.
"Law" mea ns th e Co mmu n it y Redevel o pm e nt Law of the State, co nst itu ting Pa rt I of
Divi s io n 24 o f the He a lth and Safe ty Co de of th e Sta te, and th e act s a mendatory th ereof a nd
supplem e nt a l th e reto (includin g t he Di ss o luti o n Act).
"Maximum Annual Debt Service" mea ns, as o f the date of ca lc ulat ion, th e large st amo unt fo r
the c urrent or a ny fut ur e Bond Yea r payab le in such Bond Year. Fo r purpo ses of suc h ca lcu la ti o n,
there sha ll be excluded pa yment s with res pect to eac h series o f Bond s to th e ex te nt th a t amounts du e
6
w ith res pect to s uc h serie s of Bond s a re prepa id or othe rwi se di sc harge d in acco rd a nce wi th thi s
lnd en tu re.
"Moody's" mea ns Moo dy's In ves to rs Serv ice a nd its s uccesso rs.
"Nom inee" mean s (a) in iti a ll y, Cede & Co., as no min ee of DTC, a nd (b) a ny other no minee of
th e D ep os it o ry de s igna t ed purs ua nt to Sectio n 2.11 (a).
"Outstanding" w he n used as of a ny pa rti c ul a r t im e w ith refe rence to Bond s, mea ns (s ubject
to t he pro v is ions of Section 9.05) a ll Bo nd s except:
(a) Bo nd s th eretofore ca nce led by th e Tru stee o r surre nd e red to th e Tru stee fo r
canc e ll ati o n;
(b) Bond s pa id o r dee med to have been pa id w it hin the mea n in g of Sec ti o n 9 .0 3;
a nd
(c) Bo nd s in li e u o f o r in s ub s tituti on for whi ch ot he r Bo nd s shall have been
a uth o ri zed, execute d , iss ued a nd de livered by th e S uccesso r Agency pursua nt hereto.
"Overs ig ht Board" me a ns th e Ove rsig ht Boa rd o f the Successo r Age ncy estab lis hed pu rs uant
to the Sec ti on 34 179 of th e Di sso lut io n Ac t.
"Ow n er" o r "Bondowner " means, with res pect to a ny Bond , th e pe rso n in w hose name the
o wnership o f such Bond s hal l be reg is tered o n th e Re g is trat io n Books .
"Parity Debt" mean s a ny add it io na l bo nd s, loa ns, adva nces o r indebted ness iss ued or inc urred
by the Successo r Age nc y o n a pa rity w ith the 20 16 Bo nd s pur suant to Secti o n 3.0 5, w het her iss ued as
Bo nd s und e r a Supp lemental In de nture o r iss ued und er a Pa rit y Debt Instrum ent.
"Parity Debt Ins trum e nt" mean s a resolu ti on, indent ure of tru st , sup p le mental inde nt ure of
tru st, loa n ag re e ment , tru s t agreem e nt or ot he r in strum e nt a uthor iz in g th e iss ua nce of an y Parit y Debt,
othe r tha n a upplementa ll nd e nture .
"Participati n g Underwriter" ha s th e mea nin g as cr ib ed theret o in t he Co ntinuin g D isc losure
Ce rt ifi cate .
"Permitted Investments" mea ns a ny of t he fo ll ow in g w h ich , at th e t im e of in ve stm ent, a re
lega l in ve stm e nt s und er th e laws of th e St ate fo r th e mo neys proposed t o be invested th e re in a nd are in
co mpli a nce w ith th e Successo r A ge ncy 's inv estmen t po lici es th en in effect (prov ided that th e Trus tee
s ha ll be e ntit led to re ly up on a ny in ves tment d irec ti o n fr o m th e Succe sso r Agency as conc lu sive
ce rt ifi cati o n to the Tru stee that in ves tments desc ri bed th e rei n a re legal a nd a re in compliance w it h the
Successo r Agency's inv estm ent po li c ies th e n in effec t), bu t o n ly to the extent th e same are ac quired at
Fa ir Marke t Va lu e:
(a) Federa l Sec uriti es ;
(b) Bo nd s, debe ntures, note s o r o ther ev idence o f indebtedn ess issue d o r
guara nt ee d by a ny of th e foll ow in g fede ra l agenci es and prov id ed s uc h ob ligat ions a re backed by t he
fu ll fa ith a nd cre d it of th e United tates o f Am erica (stripp ed securi ties a rc o nl y per mi tte d if the y ha ve
7
been str ipp e d by the agency it se lf): (i) d irec t ob i igati o ns o r fu ll y gua ra nt eed cert ifi cates of beneficial
owners hip of the U.S. Expo rt-Imp ort Bank; (i i) ce rtifi ca te s of beneficia l ow nership of th e Fa rm e rs
Home Admini stration ; (iii ) Federal Ho us in g Admini str a ti o n deben t ures; (iv) pa rticipa ti on ce1tificates
of the General Serv ice s Admini strat io n; (v) Fede ra l Fina ncing Bank bo nd s a nd de be ntu res;
(vi) gua ra nt eed mo rt gage-backe d bo nd s o r g ua rantee d pass -th ro ug h o bli ga tions of G inni e Mae
(fo rm erly kn own as th e Government Natio na l Mort gage Associati on); (v ii ) g uar anteed Title XI
financin gs of the U.S . Maritim e Ad mini stration ; and (v iii ) projec t no tes, loc al a uthori ty bo nd s, new
co mmuniti es deb e ntures and U.S . publi c ho us in g notes a nd bond s o f the U.S. Depa rtm en t of Ho us in g
a nd Urb a n Deve lop ment;
(c) Bo nd s, de be ntures, notes o r o th e r ev id ence of in de btedn ess iss ue d o r
g ua ranteed by a ny of th e fo ll ow in g non-fu ll faith a nd cred it U.S . gove rnm e nt agenci es (st ripped
securiti es o nl y as s tripped by th e age ncy it se lf): (i) seni or de bt obligati ons of th e Federal Home Loan
Bank Syste m ; (ii ) participati o n ce rtifi ca te s and seni o r debt o b ligat io ns o f th e Federa l Ho me Loan
Mortgage Co rp o rati o n; (iii) mo rt gaged-bac ked sec uriti es and senior debt o bli ga ti o ns of Fa nnie Mae;
(iv ) se ni or de bt o bli gat ion s o f Sallie Mae (fo rm e rl y kn o wn as th e Student Loa n Market in g
Associati o n); (v) ob li gation s of th e Res o luti on Funding Co rp o rat ion; a nd (v i) co nso lidated sys tem-
w ide bo nd s a nd no tes ofthe Farm C redit Sy stem ;
(d) Money marke t fund s re g istered under the Federal Inve s tment Co mpan y Act of
1940, w hose s ha re s are regi s te red under the Fed e ra l ec urit ies Act of 1933, and ha vin g a rati ng by
S&P of at least AAA m-G , A A Am or A Am, a nd a rat in g by Mood y's of Aaa , Aa 1 o r Aa2 (s uc h fund s
may in c lu de th ose fo r w hi ch th e Tru stee o r an affi liate receives and retain s a fee fo r services prov ided
to the fund , w he ther as a cu s todi an, tra ns fer agent, in vest me nt adv iso r o r o th e rw ise);
(e) Ce1tifi cates of de po s it (inc lu ding th ose of the Tru stee, its pa rent and it s
affiliates) sec ured a t all t imes by co llate ral describ ed in (a) o r (b) above o r by col latera l th at may be
used by a nati o na l bank fo r purposes of sa ti s fy in g it s o bli ga t ions to co ll a teral ize purs uant to fede ral
law, wh ic h have a mat uri ty no t g rea te r tha n one yea r from th e date of in vestme nt a nd w hich are iss ued
by commercia l bank s, sav in gs and loa n as sociat io ns o r mutua l sav in gs bank s;
(f) Certificates of deposit , savin gs acco unts, de posit acco unts or mo ney marke t
depos its (includin g th ose o f th e T ru stee a nd its a ffi liate s), but o nl y to th e exte nt th at t he a mo unt being
in ves ted in such ce rt ificate s of depos it , sav in gs acco unt s, dep os it accoun ts or money ma rke t dep os it s
are full y in s ur ed by FD IC, in c ludin g BIF an d SA IF;
(g) In ve stment agreeme nt s, in c ludin g g uaranteed inve st ment con t racts, fo rwa rd
purc hase ag reeme nt s, re serve fund put agTeement s a nd co llatera lized in vest me nt ag re e ment s w ith an
entity rated '·Aa" or better by Moo dys' and "AA'' o r be tter by S&P , o r un co nditi o nall y g uaranteed by
an entity rat ed ''Aa " o r better by Moodys' and "AA'' o r better by S&P ;
(h) Com me rc ia l paper rated , at th e tim e of purc hase, ·'Prim e-I" by Moo dy" s a nd
"A-I+" o r be tt e r by S&P;
(i) Bonds or notes iss ued by a ny sta te o r municipality which a re rate d by Moody's
an d S&P in o ne of the t wo hi g hest rat in g catego ri es assigned by s uc h agenc ie s;
8
U) F e deral fund s o r b a nkers acceptances w ith a m ax imum term o f o n e year of any
bank which has a n un secure d , uninsured a nd ung uara nteed ob li gatio n rating of "Prim e -I ,. or '·A3 " or
be tter by M oody's, a nd "A-L +" by S&P; a nd
(k) The Local Agency In vestm e nt Fund that is a dministered by the Ca li fo rni a
Treasurer for th e in vestment of fund s be lo ng in g to loca l agenc ies w ithin th e S tate of Cal i forn ia,
prov id e d th a t fo r in vestme nt of fund s h e ld by th e T r us tee, the Trus tee is e nt itled to m a ke in vestments
a nd withdrawa ls in it s own name as Trustee.
"Pledged Tax Revenues .. means a ll ta xes (i) that were e li g ibl e for allocation to t he Fo rm e r
Agency w ith respect to th e Proj ect Area a nd a re allocated to th e Successor Age ncy purs uant to A rticle 6
o f C h apte r 6 (commencing with Secti o n 33670) of the Law and ection 16 of Article XV I o f the
Co ns tituti o n of th e S tate, o r purs u a nt to o th e r appli cab le S t a te laws a nd (ii ) th at a re depos ited by the
Auditor-Controller o f the Co unty o f Los A nge les in th e Redevelo pm e n t Property T ax Trust F und , a ll
as prov id e d in Secti on 3 41 72(d) of th e Di sso luti o n Act.
"Principa l Account" m ea ns th e acco unt by th a t name esta bli shed and held by the T rustee
purs uant t o Sectio n 4.03(b).
"Principal Corpor·ate Trust Office" means the corporate tru s t office o f the Trustee in Los
Ange le s, Cali fo rni a , o r s uch other or add iti o n a l offices as the T ru stee may designate in writ in g to t he
Successo r Agency fro m tim e t o tim e as th e co rp o rate tru s t o ffi ce fo r p urposes of the In denture; except
tha t with res pect to presentation of B o nd s for payment o r for regi s tration of transfer a nd exchange,
such t e rm m ean s th e o ffice or agency o f th e T ru s tee a t w hi c h, at a ny particular time, its corpora te tru st
agency bu si ness is cond ucted.
"Project Area" m eans th e area w ithin th e R osemead Bo ul evard Redeve lo pme nt Project.
"Quali fied Reserve Account C r e dit Instrument" m eans (i) t he R ese r ve Po li cy, a n d (i i) an
irrevoca bl e sta ndby o r d irect-pay letter o f c red it , in s urance p o li cy, or s urety bo nd issued by a
comm e rci a l bank o r in s urance com pan y a nd d e pos ited w ith th e T ru s te e with res pect t o o ther B o nds,
provided that a ll of th e fo ll ow in g req uire m e nt s a re met a t th e time of accepta nce thereof by th e T rus tee:
(a) S&P or Mood y's have a ss ig ned a long-t e rm c re dit ratin g to s uc h ba n k o r in sura nce company at the
t ime of issuance of s uch Qualified R eserve Account C red it In strument of ·'A " (with out regard to
mod ifi e r) or hi g he r; (b) s uc h le tter of c re d it, in s ura nce po li cy or s urety b o nd has a term of at least 12
m o nth s; (c) s uc h letter of cred it , insurance po licy o r s ure t y b o nd h as a s tated a m o unt a t leas t equa l to
th e po rti o n of th e R eserv e Require m e nt w ith resp ect to th e B o nds w ith respect to w hi c h it is d e pos ited
o r w it h res pect to w hich fund s a re proposed to be re leased ; a nd (d) the Trustee is auth o ri z ed purs ua nt
to t he te rms o f s uc h le tter of credi t, in s urance po li cy o r sure ty bond to draw th e re unde r a n amo unt
equa l to a ny deficienc ies w hi ch may ex is t fro m time to tim e in the In terest Acco un t or the Prin cipa l
Account fo r th e purpos e of m ak in g payments required pursua nt to Sectio ns 4 .03(a), 4.03(b) or 4.03(c)
o fthi s Ind e nture.
"Rebate F und" is d e fin ed in Section 4 .04 .
"Recognized Obligatio n Payment Sch edule" m ean s a Recogni zed Obl iga ti o n Pa y ment
Schedu le , each prepa red and approved from tim e to time purs uant to s ubd iv is io n (I) of Secti o n 34 I 77
o f th e Ca lifo rni a Health a nd Safety Cod e .
9
"Record Date" mea ns, w ith res pect to an y Int e rest Pa yme nt Da te , t he c lose of bu s in ess on the
fiftee nth (15 th ) ca le ndar da y of th e month pre ce din g suc h Int e re st Payme nt Date , wheth e r o r not s uc h
fifteenth (15th) ca le ndar da y is a Bu s in ess Da y.
"R edempti o n Account" mea ns th e account by th at na me estab li s hed a nd held by the Tr ustee
purs ua nt to ect io n 4.03(d ).
"R edevelopment Obliga tion Retirement F und " mean s th e fund by that na me es tab li shed
pur suant to Ca li fo rni a Hea lth a nd Sa fet y Co de Sectio n 34 170 .5(b) and ad min is tered by th e uccesso r
Agency .
"Redevelopm e nt Pl a n" mea ns t he Redeve lopment Pl a n fo r th e Rosemead Bo ulevard
Redevel op ment Project ad opte d and approv ed by Ord in ance No. 72-350. adopted by the City Co uncil
of th e C it y o n May 16 , 19 72, as s uc h Rede velopm ent Plan ha s prev ious ly bee n ame nd ed and as it may
hereaft e r be a me nd ed in accord ance w ith th e law.
"Redevelopment Proj ect" mea ns th e und e rt a kin g of th e Successo r Age nc y purs uan t to the
Redevelopment Pl a n a nd th e Law for th e re development of th e Proj ect Area .
"Red evelo pment Proper·ty Tax Trust Fund " mea ns th e fund by t ha t nam e establi shed
pursuant to Ca li fo rni a H ea lth & Safe ty Co de Sec ti o ns 34 170 .5(a) and 34 172(c) a nd ad mini stered by
the Audito r-Co ntro ll e r of th e Co unty o f Los A nge les.
"Refund ed Bonds" mea ns the Temp le C ity Co mmu ni ty Red eve lo pment Age ncy Rosemead
Bo ul eva rd Red eve lopment Project , Ta x All oca ti o n Refund in g Bonds, Series 2005 , cu rrent ly
o ut standin g in th e aggregate pr in c ip a l amo un t of $4,870,000 .
"Re fundin g Fund" means the 2016 Refund in g Fu nd estab li shed and he ld by t he Tru stee
pursuant to Section 3 .04.
"R e funding Law" mea ns Arti c le II (c omm encing wi th Section 53580) of C hapte r 3 of Pa rt I
of Divi sion 2 o f Title 5 of th e Gove rnm e nt Code o f th e State, a nd t he acts a me nd atory thereof a nd
supp lem en ted t he reto.
"R eg is tration Books" mea ns th e reco rd s ma in ta ined by the Tru s tee purs uant t o Sec ti o n 2.0 8
fo r th e reg is tra ti on a nd tr a ns fe r o f ow ne rship of the Bond s.
"R e port" mea ns a doc ument in w ritin g s igned by an Ind ependen t Redevelopment Co nsu lta nt
a nd in c lu ding:
(a) a statement that the per so n o r firm makin g o r g iving s uc h Report ha s read th e
pe1tin ent prov is io ns of thi s In denture to w hi c h s uc h Re po rt relate s;
(b) a bri e f statem e nt as t o th e na ture a nd sco pe of th e exa min ati on o r in ves ti ga ti o n
upon whi c h th e Re p01t is based; a nd
(c) a sta tem e nt that, in th e o pini on of such pe rso n or firm , sufficient exami nat io n
or in ve sti ga ti on was made as is necessa ry to e nab le sa id co nsul tant to express a n informed opinio n
w ith respect to the s ubj ect matter referred to in th e Re po rt.
10
"Req uest fo r Last and F in a l ROPS Approval'' m ean s a re quest s ubmi t ted by th e Su c c esso r
Agency pursuant to Section 34191 .6 o f the Di sso luti o n A c t fo r approva l by th e Departm e nt o f F in a nce
o f a Last a nd Fina l ROPS or an y a m e ndme nt to an a pproved Last a nd Fi na l ROPS.
"Reserve Accoun t " m ean s th e a cco unt by th a t na me estab li shed a nd held by th e T ru s tee
purs uant to Secti o n 4.03(c).
"Reserve Po li cy" m e ans th e Municipal Bo nd De bt Se rv ice Reser ve In s urance Po li cy iss ue d
by th e 2 01 6 Ins urer g uarantee in g cert a in pay m e nt s int o th e R eserve A ccount w ith re sp ect to th e e ri es
2 016 Bo nds as pro vided th e re in a nd s ubj e ct to th e I imita ti o n set fo rth th e re in.
"Res erve Requirement'' m ea ns, s ubj ect to ectio n 4 .0 3(c) of t h is Ind e nture, w it h respect to
th e 2 01 6 Bo nd s and each seri es of Bonds, t h e lesse r of
(i) 12 5% o f th e average A nnu a l De bt Se rvi ce w ith resp ect t o th a t seri es of the
Bonds,
(ii ) M ax imum A nnual Debt Ser v ice w ith resp ect to th a t seri es of th e Bo nd s, o r
(iii ) with resp ect to an indi v idua l seri es o f Bo n ds, I 0% of th e origi na l p rin c ipa l
a mount of th a t seri es o f Bo nds (or, if such seri es of Bo nd s has m o r e th a n a d e minim is amount of
o ri g in a l iss u e d iscount or pre m ium , I 0 % o f th e iss ue pri ce o f s uch seri es of Bo nd s);
pro vided, th a t in n o event shall th e S uc c essor A ge ncy, in co nnec ti o n w it h t he issuan ce of Bo nd s be
o b l ig ate d to d e pos it an am o unt in th e R eserve Account w hi c h is in excess of t he am o unt p e rm itted by
th e ap p li cab le prov is io ns o f th e Cod e t o be so d e pos it e d f rom th e proceed s o f tax-exem pt bo nd s w ith o ut
havin g to restr ic t th e y ield o f a ny in vestment purc hased w ith any p o rti o n of s uch d ep os it a nd, in t he
e ve nt th e a m o unt o f any s uc h d e posit int o the Reser ve Account is so limi ted , th e Reserve Re qu irem e nt
s ha ll , in conn ecti o n w ith th e iss ua nce of s uc h B o nd s, b e in c re a sed o nl y b y the a m o un t of such d e p osi t
as p e rmitte d b y t he C ode; and , p rov id e d further th a t th e S uc cesso r Agen cy m ay m ee t all o r a po rti o n
o f th e Reser ve Re quire m e nt by d epositing a Qua l ifi e d Reser ve Account C red it In strume nt m eeting th e
re qu ire m e n ts o f S ect io n 4.03(c) h e reo f.
"ROPS Period" m ea ns each a nnua l perio d beginning o n Jul y I of a ny cale n dar year a nd
e nding o n Jun e 30 of the nex t ca le nd a r ye a r, o r s uc h o th e r pe ri o d as prov ided in th e Di ssol uti o n Act.
"S&P" mea n s Stand a rd & Poo r's Fin a nci a l Serv ices LLC, a di v is io n o f McGraw Hill
F inancial , a nd it s s ucce ss ors.
"Securities Depositorie .. m ean s The De posito ry Trust Co mpa ny, New Y o r k, ew Yo rk
10041-0099, Fax-(2 J 2) 8 55-7232; o r, in accorda nce w it h t h e n curre n t g uid e lin es o f th e Securiti es a nd
Ex change Commi ss io n , s uc h o th e r a ddresse s and/or s uc h o th e r secu r it ies depos it o ries as the uccessor
Agency m ay d es ig nate in a Writte n R e quest of th e S uccessor Age ncy d elivere d to th e Trustee.
"Serial Bonds" m e ans all Bo nd s o ther than T e rm B o nds.
"Specia l F und" m ean s th e fund he ld by th e Succ e ssor Agen cy esta bli s hed w ithi n the
Rede ve lo pment Oblig at io n Re ti re me nt Fund purs ua nt to ecti o n 4.02.
"State" means th e State o f Califo rn ia.
II
"S upplemental Indenture" mea ns an y s upp le me nt to th is Indenture w hi c h has been du ly
ado pted o r ente red into by th e Su ccesso r Agenc y, but o n ly if a nd to th e exte nt that s uc h upp le me ntal
In de nture is s pec ifi ca ll y autho r ize d he re und e r.
"Term Bonds" mea ns that portion of an y Bond s payabl e from ma ndatory s inking accoun t
pa yme nt s.
"T ru s tee" mea ns The Ba nk of New Yo rk Me llo n Tru s t Co mpa ny, N.A., as tru stee here und e r,
o r a ny s ucc esso r the re to app o int ed a s tr ustee he re und e r in accordanc e w ith the prov is io ns of A rtic le VI.
"Writte n Re ques t of the S uccesso r Age ncy" or "Written Cer·tifi cat e of th e Successor
Ag ency" mea ns a req uest or cer1ificate, in wri tin g s igned by the Execut ive Directo r o r Treasu rer of the
Successo r Agency. o r the des ig nee of e it her, o r by a ny o ther offi cer o f t he Successo r Age ncy o r th e
C it y dul y a uth o r ized by th e Successo r Age ncy for th at pu rpose.
"2016 Bonds" mea ns the $ initial agg regate p rinc ipal a mou nt of Successo r
Age nc y to th e Te mp le City Co mmunity Red eve lo pment Age nc y Ta x Al loca t io n Refundin g Bonds,
Se ri e s 20 16 .
"2016 Ins ure r " means ____________ , or any successor t hereto.
Sectio n 1.03 Rules of Co ns truction . A ll re fe re nces he re in to ·'A rti c les ," "Section s" and
o th e r s ubdi vis io ns a re to th e correspond ing Arti c les, Sect io ns o r s ubdiv is ions of thi s I nd e nture , an d th e
words "he re in," "hereof," "he re und e r" a nd oth e r wo rd of s im il a r imp ort re fe r to thi s Ind e nture as a
w ho le and not to a ny pa rticu la r A r1 ic le, Sec ti on o r subd ivis io n he reo f .
ARTICLE II
AUTHORIZATION AN D TERMS
Sec ti on 2 .01 A uthorization of 2016 Bo nds . Two init ia l iss ues o f Bond s a re he re by
a uth o ri zed to be issued by th e Successo r Age ncy und e r a nd subj ect to th e te rm s of t his Ind enture, the
Refun din g Law. the Di sso luti on Ac t a nd th e La w. Thi s Indenture con s titutes a co ntinu ing agree ment
with th e Owne rs of al l of the Bond s iss ued or to be is s ued he reund er a nd th e n Outsta ndin g to secure
th e f ul l and fin a l pa y men t o f prin c ip a l and redempti on pre miums (if a ny) and the in tere st o n a ll Bo nd s
which may fr o m tim e to t im e be exe cuted and de li ve re d hereunder, subject to t he covenants,
agreeme nts, pr o vi sio ns and co nd iti ons he rein co nta in ed. Suc h in itial iss ue s of Bonds sha ll be
de s ignated th e "S uccesso r Age ncy to th e Te mp le City Co mmunity Red eve lopm ent Agency Tax
A ll ocation Refundi ng Bond s, Se ri e s 2 0 16." T he 20 16 Bo nd s s ha ll be iss ue d in the init ia l agg regate
principa l amo un t of$ ____ _
Sec tion 2.02 Terms of2016 Bo nds. The 20 16 Bo nd s sha ll be iss ued in fu ll y re g istered fo rm
w ith o ut co up ons. T he 20 16 Bo nd s sha ll be issued in de nominat io ns of$5,000 o r a ny integral mu ltiple
t he reof, so lo ng as no 20 16 Bo nd sha ll ha ve more tha n o ne maturity dat e. The 20 16 Bo nd s shall be
dated as of th e ir C losin g Date . The 20 16 Bo nds sha ll be lettered a nd numb e red as th e T ru stee sha ll
presc ri be .
12
The 20 16 Bond s sha ll mature and s hall bea r int erest (ca lc ul ated o n t he ba s is of a 360-d ay yea r
compri sed of twe lve 30-day mo nth s) at the rate per a nnum as fo ll ows:
Maturity Date
(Sep t ember 1)
Principal
A m o unt
$
Interest
Rate
%
Eac h 2016 Bond s hall bear int e rest from the Int erest Payment Da te ne xt precedin g the date of
a uth e nti cat io n thereof, unl ess (a) it is authen ti cated afte r a Record Da te an d on o r before the fo ll ow in g
In tere st Pay ment Date, in which event it s hall bear intere st from such Int e rest Pa y ment Date ; or (b) it
is a uth enticated on o r before August 15 , 2016 , in wh ich e ve nt it s ha ll bear interest from its C losi ng
Date; prov ided , howe ver, that if, as o fthe date of a uth e nt icatio n of an y 2016 Bond, int eres t thereon is
in default, s uch 2016 Bond s hall bear int e rest fr o m the In terest Payment Date to wh ich int e res t has
prev io us ly bee n pa id or mad e ava il ab le for paym e nt thereo n.
Int e res t o n the 201 6 Bo nd s (in c luding the final inte rest pa yment up o n maturity o r redempti on)
is payab le whe n du e by ch eck o r draft o f th e Tru stee mailed o n th e Inte rest Payment Date to th e Owne r
the reof a t s uc h Owner 's address as it appea rs on the Re g istration Boo ks at t he c lose of bu siness o n th e
precedin g Record Date; prov id ed that at th e written request of th e Owner of at lea st $1 ,000,000
aggregate prin c ipal a mount of the 20 16 Bond s, whi c h w ritten reques t is o n fi le wit h the T ru stee as o f
any Rec ord Date , in terest o n s uc h 20 16 Bo nd s s ha ll be pa id o n the s ucc eedin g Int erest Pa yment Date
by w ire to s uch acco unt in the Unit ed States a s sha ll be speci fied in s uch w ritten req uest. The princ ipa l
of the 20 16 Bond s and pre mium , if any, up on redempt io n, a re payable in lawful mone y of the Un it ed
States of America upon pre se ntati o n a nd surre nd e r th ereof at th e Princip a l Co rporate Tru st Office of
the Trustee.
Secti on 2.03 Redempti on of 2016 Bonds.
(a) Opti ona l Redemption. T he 2016 Bonds a re [n ot] s ubject to o pti o na l
rede mpti on pri o r to th eir stated ma tur ity .
(b) [Rese rved]
13
(c) Purcha se in Lieu of Redempt io n. ln lieu of rede mpti o n o f th e Seria l o r Term
Bond s pursua nt to a Su ppl ementa l Indenture , am ounts o n depo s it in the Spec ia l Fund o r in the Principa l
Account may a lso be use d and wi thdrawn by th e S uccesso r Agenc y and th e Tru stee , respectivel y, at
a ny time , up on th e Written Req uest of the Successo r Agency, for th e purchase of t he Serial o r Term
Bond s a t pub li c or pr iva te sa le as a nd whe n a nd a t suc h price s (in cludin g bro kerage and o th er c har ges,
but excludin g accrued int e re s t. whi c h is payab le fr o m th e Inte rest Acco unt ) as the Succe sso r Agency
may in it s di scret ion determ in e. The pa r amount of a ny Seria l or Te rm Bo nd s so purc hased by the
S ucce ssor Age ncy in a ny twelve-mont h pe ri od e nd in g o n Jul y I in a ny ye a r sha ll be c red it ed towa rd s
and sha ll redu ce the par am o unt of th e Se ri a l o r Te rm Bond s req uired to be redeemed pursuant to a
Suppl e me nt a l In de nture o n Sep tembe r I in each yea r; prov ided that ev id ence sat isfacto ry to th e Trustee
of such purcha se ha s been deli ve red to th e Tru s tee by sa id Ju ly I.
Sectio n 2.04 Form o f 20 16 Bo nd s. Th e 20 16 Bo nd s, th e form of Tru stee's Ce rt ifi ca te of
Auth ent icati o n, an d th e fo rm of Ass ign me nt to appear th e reo n, s ha ll be s ubs tant ia ll y in th e form set
for th in Ex hibit A, whi c h is attac hed hereto and by thi s re fere nce in co rporated he rein , w ith necessa ry
o r appropriate va riation s, o mi ss io ns and in se rt io ns, as pe rmitted o r required by t hi s Ind e ntu re.
Sectio n 2.05 Execution of Bonds. Th e Bo nd s sha ll be exec uted o n behalf ofthe uccesso r
Age ncy by th e s igna ture of its Exec ut ive Director o r it Treas urer o r th e w ritt e n des ignee of e it her a nd
the s ignature of it s Sec retary w ho a re in o ffi ce on th e date of executi on a nd delivery o f thi s Inde nture
or a t any tim e therea fter. Eithe r o r both of such s ignatures ma y be made ma nu a ll y o r may be affixed
by fac s im il e t hereof. Jf a ny offi cer whose s ig nature a pp ea rs o n an y Bo nd ceases to be s uc h officer
befo re delivery of the Bond s to th e purcha se r, s uc h s ig na ture sha ll neverthel ess be as effect ive as if th e
officer had re mained in office un t il th e de li very o f th e Bo nds to th e purc ha se r. An y Bo nd ma y be
s igned and atte sted o n beha lf of th e Successo r Age ncy by s uc h perso ns as at t he actua l da te of t he
exec uti o n o f suc h Bo nd s hall be th e proper officers of th e Successo r Agency a lth o ug h on th e date of
s uc h Bond a ny suc h perso n s ha ll no t ha ve bee n s uch o fficer of th e Succ es o r Agenc y.
On ly s uc h of the Bond s as sha ll bear t he reo n a Ce rtifi cate o f Aut hent ica t ion in t he form
here inb efore se t fo rth , ma nu a ll y exec uted a nd dated by the Tru stee, sha ll be va lid o r o bli ga tory fo r a ny
purpo se or e ntitl e d to the benefits of thi s Ind e ntur e , a nd s uc h Certificate sha ll be co nc lu sive evide nce
th at suc h Bo nd s have been du ly a uthentica ted a nd delivered hereund e r a nd are e ntitl ed to the benefits
of thi s Ind ent ure. In th e event tempo ra ry Bond s a re issued purs uant to Sect ion 2 .0 9 he reof. the
te mp ora ry Bo nd s ma y bea r th e reo n a Ce rt ifi cate of Authent ication executed and dated by the Tru s tee,
may be initi a ll y regis te red by th e T ru stee , and , until so exc han ged as prov ided und er ec ti o n 2 .09
he reof, th e te mp orary Bond s sha ll be entitl ed to th e sa me benefits purs uant to thi s In denture as
defi ni t ive Bo nd s authent icate d a nd de li ve red he re un de r.
Sectio n 2.06 Transfer of Bonds. An y Bond may, in acco rdance w ith it s ter ms, be
tran sferred. up o n th e Regi st rati on Boo ks , by th e pe rso n in whose nam e it is reg istered , in perso n or by
a d ul y a uth ori ze d a tt o rn ey of s uc h perso n, up o n sur re nd e r o f s uch Bo nd to t he Tru stee at it s Principal
Corpo rate Tru st Office for canc e ll ati o n, acco mp a ni ed by delive ry of a w ri tten in strum ent oftransfe r i n
a fo rm acceptabl e to the Tru stee, du ly exec uted. When eve r a ny Bo nd s hall be s urrendered for transfer,
th e Succe sso r Age nc y s ha ll exec ut e and t he T ru stee sha ll th e reupo n a uth e ntica te and de live r to t he
tr a nsfer ee a new Bo nd or Bond s of lik e se rie s, te no r, maturity and agg regate prin c ipa l a mo unt of
auth o rized denom in atio ns. Th e Truste e sha ll co ll ec t fr o m the O wne r any tax o r oth er govern me ntal
charge o n th e tran sfer of an y Bond s purs ua nt to thi s Section 2 .06. Th e cost o f print ing Bond s and any
se rv ic es re nd e red or expenses in c urred by the Tru stee in co nnect io n w it h any tran sfer s ha ll be paid by
th e Succe sso r Age nc y.
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The Trustee may refu se to trans fe r, un d e r th e p rov is ion s o f thi s S ecti o n 2 .06, e ith er (a) a ny
Bo nds durin g th e p erio d fift e en (15) days pri o r t o th e d a te esta bli sh e d by t h e Trust ee fo r t he selecti o n
o f Bonds fo r re d e mption, o r (b) any B o nd s se le cted by th e Trus tee fo r red e mpt io n .
Sectio n 2.07 Exchange of B o nds. Bo nds may be e xc ha nged at th e Princ ip a l Co rpo ra te
Trus t Offi ce of the T ru s tee fo r Bo nds o f th e sa m e se ri es, t e n o r a nd m a tu rity a nd o f ot he r a uth o ri zed
d e no min a t io n s . T h e Tru stee s ha ll co ll ect an y tax o r o th e r governme nta l c ha rge o n th e excha nge of a ny
Bo nd s purs ua nt to th is Sectio n 2 .07. The cost o f prin t ing Bo nd s and a ny ser v ices re nde re d o r expen ses
in c urre d b y th e Trust e e in c o nn ecti o n w ith a ny exchange s hall be pa id by t he Succe sso r A gency.
The T ru s tee may re fu se to excha n ge, und e r th e provis io n s of th is Secti o n 2.07, eith e r (a) a n y
Bo nd s during th e fi ft e en ( 15) d ays prio r to the d a te estab li s he d by th e Trustee fo r th e selection of Bo nd s
fo r re d e mpt io n o r (b) a ny Bo nd s selecte d by th e Trust ee fo r re dempt io n.
Section 2 .08 R egistra tion o f Bo nd s . Th e T ru stee w ill k ee p o r cause to be ke pt, a t its
Prin c ipa l Co rpo ra te Trust O f fi ce. s uf fi c ie nt record s fo r th e regis tra ti o n a nd registra t ion of tra n sfe r o f
th e Bonds, w hi c h sh a ll at a ll t im es durin g no rma l bu s iness ho urs be o pe n to i nspect io n a nd copy in g b y
th e S uccessor Agency, up o n re a sonabl e prio r no ti ce to th e Trus tee; a nd , u po n presen ta ti o n fo r s uch
purpose, the T ru st e e s ha ll , un der s u c h re a so na bl e regul a ti o n s a s it m ay p rescribe, reg is te r o r tra nsfer
o r cause to be regis tered o r tra n s fe rre d , o n th e Registra ti o n B ooks Bo nds as h e re in be fo re p rov ided.
Sectio n 2 .09 [Reserve d]
Sectio n 2 .10 Bonds M utilate d , Lost, Destroyed or Stole n . If a ny Bo nd s hal l becom e
mut i la te d , th e S u cce ssor A gency. at th e ex pe n se of th e O w ner of s u c h Bond , s ha ll execute. a nd th e
Tru stee s ha ll th e re upo n auth e nti cate a nd d e li ver, a new Bo nd o f li ke t enor and a m o unt in excha nge
a n d s ubst it uti o n fo r th e Bo nd so mut il at e d , but o n ly u pon s urre nd e r to th e Trustee of the B o nd so
mut il a te d. Eve ry m util a te d B o nd so su r re nd e red to th e Trustee s ha ll be ca ncele d by it. lf a ny Bo nd
sh a ll be lost, d estroyed o r s to le n , evid e n ce o f s uc h loss. destruct io n o r th eft m ay be s u bm itted t o t he
T ru stee a nd , if s u c h ev id e n ce be sati s facto ry to it a nd inde mni ty sa ti sfactory to it sh a ll be given , t he
S uc c esso r Agency, a t th e expe nse of th e Owne r , sh a ll execute, a n d th e T rus tee s hall t he re upo n
a ut he nti cat e a nd d e li ve r, a new Bo nd o f lik e te no r a nd a m o unt in li eu of a nd in s u bs titu tion fo r t he
B o nd so lost , destroyed o r s to le n (or if a ny s uc h Bo nd h as m a t ure d o r has been ca ll e d fo r re d e m pt ion ,
in st ead of issu in g a s ubstitute Bo nd , th e T r u stee m ay pay th e sa m e w ith o ut s urre nder th ereof u po n
re ceip t o f in demnity s atis facto ry t o t he Trus tee a nd th e uc c essor Agency). T he uccessor Age ncy
may re qu ire p aym e nt by the O w ne r o f a s um n o t exceedin g the actua l cost of p re pa r in g each new Bo nd
iss ue d unde r th is Section 2 .10 a n d o f the expe nses w hi c h m a y be in c urred by the Successor Agency
a nd th e Trus tee in th e premi ses. An y Bo nd issue d under th e pro vi s io n s of t hi s Sect io n in li e u of a ny
Bo nd a ll eged to be lost, d estroyed o r sto le n s ha ll con stitute a n o rig in a l add it io na l contra c tua l o b ligati o n
o n the part of th e Successor Agency w h e ther o r n o t the Bo nd so a lleged to be lost, d estroyed or s to le n
be at a ny t im e e nfo rceab le by a nyo ne, a nd s ha ll b e e qu a ll y a nd pro po rt io na te ly e n t it led to th e benefit s
o f thi s In d e ntu re w ith a ll o th e r Bo nd s issue d purs u a n t to t hi s i ndent ure.
Sectio n 2 .11 Book-E ntry System .
(a) Origina l De livery . T h e Bo nd s s ha ll be in iti a ll y d e liv e re d in th e fo r m of a
se para te s in g le fu ll y re g is te re d Bo nd w it ho ut coupo n s (wh ich m ay be ty p ewri t te n) fo r each m a turity
of th e B o nds. Up o n initia l d e li very, th e o wn e rs hi p of each s u c h Bond s ha ll be registere d on th e
Regis tra t io n Book s in the na m e o f t he Nom in ee . Except as prov id ed in s ubsection (c). th e owners h ip
15
of a ll of th e Outstanding Bond s sha ll be regi stered in th e name of th e ominee on th e Regi s tration
Books.
With respect to Bo nd s th e ownership of whi c h s ha ll be reg istered in the name of the
Nominee , neither the Successo r Agency nor the Tru stee s hall hav e any res pons ibili ty o r ob li ga tion to
a ny Depos it ory Sys tem Parti c ip a nt or to an y pe rso n o n be half of which the Dep os it o ry ystem
Participa nt ho ld s an interest in th e Bond s. Without limitin g the generalit y of the immediatel y prec eding
se ntenc e, neithe r th e Succ esso r Age ncy nor the Tru ste e s hall ha ve any res po ns ibility or ob li gat ion w ith
res pect t o (i) the accuracy of th e re co rd s of the Dep os it ory, the No min ee or a ny Dep os it ory ystem
Particip a nt w ith res pec t to a ny ow ne rship int erest in th e Bond s, (ii) th e de live ry to any Depos itory
System Participant o r a ny o th er pe rso n, other th a n a Bond ow ner a s s how n in the Regis trati o n Boo ks,
of any no ti ce w ith respect to the Bond s, includin g a ny notice of redem pti o n, (iii ) the se le ct ion by the
Depos it o ry o f the be neficial in te res ts in th e Bo nd s to be red ee med in t he eve nt th e Successo r Age ncy
e lect s to redee m the Bond s in part, (iv) the payment to an y Depository yste m Pa rticipant o r a ny othe r
perso n, o th e r than a Bondown e r as s ho wn in th e Reg is tra tion Books, of any amo unt w it h res pect to
princ ipal , pr emium , if any , or intere st o n the Bond s o r (v) any conse nt g iven o r o ther acti on taken by
th e D e pos ito ry as Owner of th e Bo nd s. The Succe sso r Agency and th e Tru stee may treat a nd co ns ider
the perso n in whose name each Bond is reg is tered as th e ab so lute ow ne r of such Bond for the purp ose
of pa y ment of prin c ip a l, pr emium a nd interest on s uc h Bond , for th e purpose of g iv in g no tice s of
redempti on a nd ot her matters wi th re spect to s uch Bond , for the pur pose o f regi s terin g tran sfe rs of
owner ship of s uch Bond , a nd for a ll ot he r purposes wha tsoe ver. Th e Trustee shall pa y the prin c ip al of
a nd int ere st a nd pre mium, if a ny, o n the Bond s o nl y to the res pect ive Owners or their re spective
atto rn eys dul y a uth o ri ze d in wr itin g, and al l s uc h pa yments s hall be va lid and effect ive to f ull y sa ti sfy
and di sc harge al l ob li gat ions with re spec t to payment of prin c ipal of a nd inte re st and premium , if a ny,
on the Bonds to the exte nt of the sum o r s um s so paid. No pe rso n o th e r th an a Bondowner s ha ll rece ive
a Bond ev id e nc in g the o bli ga ti o n of th e S uccesso r Agency to make pa yme nt s of princ ipal, int e re st a nd
pre mium , if a ny, purs uant to thi s Indentu re . Upon deli ve ry by the Depos it ory to t he Nominee of wr itte n
notice to the effect tha t th e De pos it o ry ha s dete rmin ed to sub stitu te a new no m in ee in its place, and
s ubj ect to th e provi s io ns here in w ith respect to Reco rd Dates, suc h new no m in ee s hall beco me the
Nom in ee he re under for a ll purposes; and upon rece ipt of such a noti ce th e Successo r Age nc y sha ll
promptl y de li ve r a copy of th e same to the Tru s tee.
(b) Represen ta ti o n Lette r. In o rd e r to q ual ify the Bo nd s fo r the Depos it o ry's boo k-
e ntry sys te m, the Succe sso r Agency s hall exec ute a nd de li ve r to s uc h De pos ito ry a letter repre se nting
such matte rs a s s hall be necessa ry to so qua li fy the Bo nd s. The exec ution a nd de liv ery o f s uc h lette r
sha ll not in any way limit the prov is io ns of s ub sect io n (a) a bove or in a ny oth er way imp ose up o n the
Succes so r Age ncy o r th e Tru stee any o b i igat io n whatsoe ver wit h respect to perso ns hav in g intere st s in
the Bond s o ther than the Bond owners. The Tru ste e agree s to comply wit h all provision s in s uch lette r
with res pe ct t o th e g iving of no tic es there under by th e Trustee. In add iti o n to th e execution and deli ve ry
of s uch letter, upon w ri tte n requ est of the Depos it ory or th e Tru stee, the uccesso r Age ncy ma y take
any other action s, not in con s iste nt w ith this Ind e nture, to qua lify th e Bond s for the Depository's boo k-
ent ry pr ogram.
(c) Tran s fer s Out s id e Book-Entry Syste m. In th e event that either (i) the
Depo sit o ry de termin es not to continue to act a s Depos it o ry for the Bonds, o r (ii) the Successo r Agency
determines to te rminate the Depos it ory as such , th en th e Successor Agenc y s hall thereupo n di sco nt inue
the bo o k-e ntry syste m w it h suc h Depos it o ry . In s uch event , the Dep os it ory sha ll coop erat e with the
Successo r Agency a nd the Tru ste e in the iss uance of rep lace ment Bo nd s by providing the Trustee w ith
a list showin g the interests of th e Deposit o ry System Participants in the Bonds, and by surrendering
16
the Bonds, r eg istered in th e n ame of th e Nomin ee, to th e Trustee o n o r before the date suc h rep lacem e nt
Bonds a re to be issue d. The Depos itory, by accept ing d e li ve ry of the B o nd s, agrees to b e bound by
th e provis io n s o fth is s ubsecti on (c). If, prior to the termin atio n of t he Depos itory acting as s uch, t he
S uccessor Agency fa il s to identify a no th e r Securities Depos it o ry to re pl ace th e D epository, t hen the
Bo nd s s h all no lo n ger b e requi red to be reg is tered in the Registrati on Books in the name of the
Nominee, but sh a ll be registered in w h atever n ame o r names the Owners tran sferrin g or exchangi n g
B o nd s sh a ll des ignate, in accordan ce w ith th e provisions of thi s Arti cle II. Pri o r to its te rmination, the
Depos it o ry s ha ll furni sh th e Trustee w ith the na m es a nd addresses o f t he Depos itory System
Partic ip an ts and respectiv e owne rs hip inte res ts th ereof.
(d) Payment s to the Nom in ee. o twithstandin g a ny o ther prov 1s1o n of thi s
In den ture to the co nt ra ry, so lo ng as a ny Bo nd is registered in th e n ame of the o minee, all payments
w ith respect to principal o f and inte rest a nd pre mi um, i f a n y, o n s u c h B ond and all not ices with re spect
to s uch B o nd sh a ll b e made a nd g iven , respect ive ly, as prov id e d in t he letter described in subsection
(b) of thi s Secti o n or as othe r w ise in structed by th e De p os it ory.
Section 2.12 App li cabi lity o f Provisions to Ad ditional Bonds. Unless o th erwise p rov ided
in a Supplementa l Ind e ntu re, th e prov is ions of Sect io ns 2.03(c) and 2.05 thro ugh 2.11 s ha ll apply to
a ll B o nd s.
ARTICLE III
DEPOS IT AND APPLI CATIO N; ADDITIONAL DE BT
Section 3.01 Issuance of Bo n ds. U p o n the executi o n and del ivery of thi s In denture, the
Successor Agency s ha ll execute and de l ive r to t he Trustee th e 2016 Bo nds in the aggregate princ ipa l
a mount of $ a nd the Tru stee s ha ll authenti cate and deli ver the 20 16 Bonds upo n the
Writte n Request o f th e S u ccesso r Agency.
Sectio n 3.02 App li ca tion of Proceed s of Sa le a nd Certain Other A m o unts. On t he
C losin g Da te with respect to th e 20 16 Bo nds, th e proceeds of sa le of th e 20 16 Bo nds received by t he
T rustee sh a ll be a ppli e d a s foll ows:
(a) The Trus tee sha ll deposit th e amount o f $ _____ in th e Costs of Issuance
Fund.
(b) The T ru stee s h a ll depos it $ _____ , being th e rema inin g a m o unt of
p ro ceeds o f the 20 16 Bonds in th e Refunding Fund.
Sect ion 3.03 Costs of I ss u a n ce F und . T here is he reby establ ish ed a separate fund to be
kn own a s th e "Costs of I ss uance Fu nd", w hi c h s ha ll be held by th e Trustee in tru st. The moneys in the
Costs of I ssuance F und s hall be used and w ithdrawn b y the T ru stee from time to t im e to pay the Costs
o f Iss uance w ith respect to th e 20 16 Bonds upo n s ubmi ss ion of a Written Request of th e Successor
Agency s tatin g the pe rson to w hom paym e n t is to be m ade, the amount to be paid, the p u rpose fo r
w hi ch t he o bli gatio n was in curred and th a t s uch pay m e nt is a pro pe r char ge aga in st sa id fund. Each
s uc h Written Request o f the Successor Agen cy s ha ll be s uffi c ient evidence to t h e T ru stee of t he facts
stated the re in and th e T r ustee shall have no du ty to confi rm the accuracy of s uch fact s. On the date
w hich is s ix (6) months fo ll ow in g th e C losin g Date with respect to the 20 16 B o nd s, or u pon the earlier
Written R equest o f the Successor Age ncy, a ll amounts (if any) re m ain in g in th e Costs of Jssuance Fund
17
shall be w ith drawn th e refrom by th e Trustee and tra ns ferred to the Interest Acco un t w ithin t he Debt
Serv ice Fund an d th e Costs of Issuan ce Fund sha ll be c losed .
Sectio n 3.04 Refunding F und . There sha ll be es tab li s hed a se pa rate and segrega ted fu nd
to be kn own as th e "20 16 Re fundin g Fu nd'' (the "Refund in g Fun d"). On the C los in g Da te w it h res pect
to t he 20 16 Bo nds, t he Tru s tee sha ll tran sfer th e$ o n de posit in th e R efundin g Fund to
the Escrow Bank fo r depos it pursuan t to th e Esc row Agreeme nt. Upo n maki ng s uch t ran s fe r, the
Tru stee shall c lose the Refundin g Fu nd.
Sect io n 3.05 Issuance of Parity Debt. In add it io n to the 2016 Bo nd s, t he Successor Agenc y
may iss ue Pa rit y De bt to refund any outstand in g 20 16 Bo nd s or o th e r Pa rit y Debt in s uc h pr in cipal
a mo un t as s ha ll be dete rmin ed by th e uccesso r Age nc y. The Succe sso r Agency may iss ue an d delive r
a ny suc h Parity Deb t su bjec t to the fo ll ow in g spe c i fi e co ndi tion s a ll of w hi c h a re he reby made
co nditi on s precede nt to th e iss ua nce a nd delivery o f s uc h Pa rit y D ebt:
(a) No Event of Defau lt hereunde r o r a n event of de fau lt und e r an y Pa rity Debt
Jn strum e nt s ha ll have occ urre d and be co ntinuin g unl ess c ur ed by th e iss uan ce o f s uch Parity Debt;
(b)
se ction 34 177.5 ;
Th e Parity Debt shaiJ be iss ued in co mp lian ce wit h Health and Safety Co de
(c) Jn th e e ve nt t he Successo r Age ncy issue s Parity Debt as Bond s purs ua nt to a
Supp le me nt a l Ind e nture , th e S uccesso r Ag en cy sha ll cau se the a moun t on depo s it in th e Re se rve
Account to equal the Re se rve Re quire me nt ; and
(d ) T he Successor Age ncy s ha ll de li ve r to the Tru s tee a Written Ce rtificate o f the
Successo r Age ncy ce rti fyi ng th a t th e co nditi ons precede nt to t he iss uance of such Parity Debt set forth
above have bee n sat is fi ed .
Sec ti on 3.06 Issu ance of Su bordinate De bt. Notw ith standi ng th e fore go in g, no prov is io n
herein shall preven t t he Successo r Age ncy from iss uin g add iti o na l bo nd s or incurrin g oth er loa ns,
adva nces o r indebtedne ss pa yab le fr o m P ledged Ta x Reve nue s o n a su bo rdinate ba s is to th e 20 16
Bond s a nd the Bond s .
ARTICLE IV
SECU RITY OF BONDS ; FLOW OF F UN DS
Sectio n 4.01 Security of Bonds; E qual Security. S ubj ect to the pr ovis ion s ofSection 4.02
and Section 6.06 hereof a ll owing fo r th e appli cat io n of Pledged Ta x Rev enues, a ll Ple dged Tax
Revenu es a nd the Redevel opment Ob li ga ti on Retirem e nt Fu nd , in clud ing the Special Fund the rein ,
a nd a ll amounts in th e Red eve lopme nt Pr ope rty Tax Trust Fund , inc lu din g wit hou t limita ti on a ny
ov errid e tax reve nu es attributa bl e to tax rate o ve rride s lev ied by tax in g age nci es wit hi n the Project
A rea th a t we re pl e dge d t o th e Re fund ed Bo nd s, are irr evoca bl y p ledge d unde r th is In denture to secure
th e payme nt of th e prin c ip al of a nd inte re st or redemption premium (if an y) o n t he 20 16 Bond s and a ll
Par ity Debt w ith o ut preferen ce o r pr io rit y for se ri es , issue, numbe r, dated date, sale date, date of
exe cuti on o r date of de li very. uc h pledge s hall constitut e a fir s t and exclus ive li en on and sec urity
in tere s t in the Pl edged Tax Reve nu es and the Red eve lo pm e nt Ob liga tion Retirement Fund. in cl uding
the Speci a l Fund the re in , a nd a ll amo unts in the Red eve lopme nt Prop e rt y Ta x Tru st Fund , includi ng
18
w ithou t limi tation a ny overrid e tax reve nue s attributabl e to tax rate ove rri des lev ied by ta x in g age ncies
w ithin th e Project Area that we re p ledged to the Re fund ed Bond s, a nd w ill attac h, be perfected and be
val id and b in din g aga in st a ll parti es hav in g claim s of a ny kind in to rt , con trac t or ot he rw ise aga in st the
Succ essor Age ncy, irre spect ive o f w he th e r s uc h pa rti es have not ice of this Ind enture; prov ided
howeve r, th e part ies he reto acknow ledge that th e A udito r-Co ntro ll er of the Co unty of Lo s Ange les is
a uth o ri zed by ect io n 3418 3(a) of th e Di sso luti on Act to use Pl edged Tax Revenue s to pay th e
Co unt y's admi n ist ra ti ve co s ts a ll owed und er Sect io n 34 18 2 and Sec ti o n 95.3 of the Revenue a nd
Taxa ti on Co de and is req uired by Sec ti o n 34 183(a)( I) o f t he Di sso luti o n Ac t to pay Pl edged Tax
Reve nu es to ta x in g e ntiti es pursuan t to Sect io ns 33607 .5 a nd 33607 .7 of t he Law (un less s uch
pay ments arc subordinated to pa yme nt s on th e 20 16 Bo nd s and Pari ty Debt purs ua nt to ect ion
33 607.5(e) of th e Law and 341 77.5(c) of th e Di sso luti on Act). Except for th e Pledged Tax Revenu es,
such am o unt s a nd suc h fund s a nd acco unts, no ot he r mo neys, fund s, accou nt s or propertie s of t he
Successor Age ncy a rc pled ged to. o r oth e rwise li ab le fo r, th e payment o f pri ncipal of or int erest o r
re dempti o n pr e mium (if a ny) o n th e 20 16 Bonds or Pa rity D ebt except as prov ided in t he fo llowi ng
pa ragrap h w ith re s pec t to the 20 16 Bo nd s and oth e r Bo nds.
Th e Debt Se r vic e Fund and any fund o r acco unt c reated unde r thi s Indenture (except t he Rebate
Fund ), in cluding a mo unt s on depo s it th ere in (inc lu ding p roceeds of th e 20 16 Bonds), are irrevocab ly
pl e dge d under thi s Indenture to secure th e pa y ment of th e pri nc ipal of and interest or rede mption
prem ium (if a ny) o n th e 2016 Bond s an d oth e r Bond s w ith o ut prefe rence or pr iori ty fo r se ri es iss ue ,
numbe r, da ted date , sa le date , date of execu ti o n o r da te of de li very. Such pl edge s ha l l constitu te a fi rst
and exclu s ive li e n o n a nd se curity inte rest in th e De bt Se rv ice Fund and a ny ot he r fu nd or acco unt
created und er thi s Indenture (except the Rebate Fund ), a nd includin g a mo unt s o n depos it there in
(includin g proceeds of th e 2 016 Bo nd s), and w ill atta c h, be pe rfected and be va lid a nd binding aga in st
a ll pa rti es havin g c laim s of any k ind in tort , contract o r oth erw ise agains t the Successor Age nc y,
irre s pecti ve of whe th e r such parti es have noti ce of thi s Ind e nture.
T he pa tties ack now ledge that Sec ti o n 34 177.5(g) of the Di sso lu t io n Act prov ides that t he 20 16
Bo nd s a nd Pa r ity De bt a re f urth e r sec ured by a pl edge of, an d li en on moneys depo s ited in th e
Re devel o pm ent Pro pe rty Tax T ru st Fund held by th e Audito r Co ntr o ller of the Co un ty of Lo s Ange les
re lated to th e Successo r A ge ncy, w hi c h moneys, s ubj ec t to the payment by the Audi to r Co ntro ll e r of
th e Cou nt y of Los Ange les o f certa in a mounts to th e Co unt y for adm ini st rat ive costs a llowed und er
Secti on 34 18 2 a nd Section 95.3 of th e Reve nu e and Taxatio n Code a nd to taxing entities pu rs uant to
Secti o ns 33607.5 a nd 33607 .7 of th e Law, con stitute Pl edged Ta x Revenues as defin ed herein.
In cons iderat io n of th e accepta nce of th e 20 16 Bonds a nd oth e r Bonds by th ose who sha ll ho ld
th e sa me fr om time to tim e, thi s In denture s hall be dee med to be a nd shal l co ns ti t ute a cont ract betwee n
th e Succ esso r Age nc y and th e Owne rs from tim e to time of th e Bond s, a nd the covenants a nd
agreem e nt s he re in set forth t o be perfo rm ed on beha lf of th e Succe sso r Agency s ha ll be for t he equal
a nd pr o po rti o nate be nefit , sec urity and protecti o n of a ll Owners of t he 20 16 Bo nd s and other Bond s
w ith o ut pr efe re nce, priority o r di stin c ti o n as to sec urity o r o the rwi se of any of th e 20 16 Bo nd s a nd
o th er Bo nd s ove r a ny of th e o th e rs by reaso n of th e numbe r or date the reof o r the tim e of sa le, exec ut io n
a nd del ive ry the reof, o r oth e rwise fo r a ny ca use whatsoeve r, except as exp re ss ly prov ided th erei n or
herein.
Section 4.02 Redevelo pm e nt Obliga tion Re tire ment Fund; S pecial Fund; De pos it of
Pledged Tax R evenues. There is he reby esta b li shed a s pecia l f un d to be known as th e "Special Fund "
which is to be he ld by th e Successo r Age ncy w ithin th e Redevelopmen t Ob li ga t ion Ret irement Fund.
19
T he Spec ial Fund s ha ll be he ld by the Succe sso r Age ncy separate and apart fro m other funds of t he
Successor Agency.
The uccessor Age ncy sha ll de pos it a ll o f th e Pl edged Tax Revenue s rece ived wit h respec t to
a ny ROP S Period in acco rdan ce w ith Sec ti o n 5 .1 3 he re o f in the Redeve lopme nt Ob ligation Retirement
Fu nd. Imm ediately up on s uch deposit, the Successo r Age nc y s ha ll tran s fer into the S pecial Fu nd al l
Pl ed ged Tax Reve nu es a ll ocab le to the pay ment of th e principal of and int e re s t o n 20 16 Bonds and
oth er Bo nd s fo r th e c urrent Bond Yea r. All P le dge d Tax Revenu es remaining in the Redeve lo pm e nt
Ob li ga ti o n Retir e me nt Fund and in excess of th e amoun t req uired to make t he t ra nsfer s requ ired he re in
to the Spec ia l Fund a nd to make a ny ot her pa y ments d ue he reund e r, and except as ma y be prov ided to
the co nt rary in thi s In denture or in any Suppl e men ta l Ind en ture o r Pa r ity Debt Instrument, sha ll be
re leased fr o m the pl e dge and li en hereu nd e r when app li ed by t he Successor Agency in accordance w ith
t he Law, including to the payment of othe r o bli ga ti o ns o n a Recogni zed Ob li gat ion Payment chcdu le
payab le after pay me nt of th e Bonds as req uired by Secti on 34 18 3(a)(2) of the Dissolution Act.
Pri o r to the payment in fu ll o f th e prin c ip a l of and inte re st a nd redemp ti o n prem ium (if a ny)
o n the Bonds a nd th e payme nt in fu ll of a ll ot he r amoun ts payable hereunder a nd under any
S uppl ementa l Ind e ntures o r und er a Parity De bt In strum e nt , th e Successor Agency s ha ll no t ha ve any
beneficial ri g ht o r interes t in th e moneys on dep osi t in th e Specia l Fund , excep t as may be provided in
this In denture and in a ny Supp lementa l Indenture or in a Parity Debt In s trum ent.
Section 4.03 Depos it of Amounts by Trustee. There is he reby esta bli shed a tru st fund to
be known as th e De bt Servi ce Fund, whi c h sha ll be he ld by the T ru stee hereunder in tru s t. Moneys in
the Special Fund sha ll be tr an s ferred by th e Successo r Age ncy to th e Tru stee in the following amo unts,
at th e following t imes, a nd depo s it ed by th e Tru stee in t he fo ll owin g respective special accounts. whi ch
a re he reby establi shed in th e Debt erv ice Fund , and in the following order of priority (prov ided further
that, if on the fifth (5 th) Bu s ine ss Day pri o r to t he date the Successor Agency is required to transfer
a mo unt s o n depos it in th e Specia l Fund to th e Tru stee there a re not amo unts on deposit there in
s uffi c ie nt to mak e th e fo ll ow in g depos it s, taking int o account amounts requ ired to be tra nsfe rred wit h
resp ec t to Bonds other than th e 20 16 Bond s, th e Successo r Agency s hal l immed ia te ly noti fy the T ru stee
of th e a moun t of a ny such in suffi c iency):
(a) In teres t Accou nt. On or before the fifth (5th) Bu s iness Day preceding each
Int e rest Pa y ment Dat e, commencing w ith th e Int e rest Payment Date of [ epte mb er I. 20 16], t he
Successo r Agency s hall w ithdraw from th e Specia l Fund a nd tran s fer to the Tru stee, for de pos it in the
Inte res t Account an amo unt which when added to th e amou nt conta ined in t he Inte re st Acc ount on that
date , w i II be eq ua l to th e aggregate amo unt of th e inte res t bec om ing due a nd payab le on the
Outsta ndin g Bonds o n s uch Interes t Pay ment Date. o such tran s fer and deposit need be made to the
In terest Accou nt if the amount contained there in is a t lea st eq ual to the int erest t o become du e on the
next s ucceed in g Inte rest Pay ment Date up o n all of th e Outs tanding Bond s. A ll mo ne ys in the Int e rest
Account sha ll be used a nd w ithd rawn by the Tru s tee so le ly fo r th e purpose of paying th e intere s t o n
th e Bo nd s as it shall becom e due a nd paya b le (in c lu d in g acc rued inte rest o n any Bonds redeemed pri or
to maturity pursuant to thi s In de nture).
(b) Principa l Acco unt. On o r before the fifth (5t h) Bu s ine ss Da y preceding
Septe mb er I in each yea r beg innin g September I , 20 16, the Successo r Age ncy s ha ll w ith d raw fro m
th e Special Fund a nd tran sfer to the Tru stee for depos it in th e Princ ip a l Acco unt an amount wh ic h,
w hen added to th e amoun t th en conta in ed in th e Prin c ip a l Account, will be equa l to the principal
beco min g du e a nd payab le o n th e Out sta nd ing Serial Bond s a nd Outstand in g Term Bond s, including
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purs ua nt to mand a tory sinkin g acco unt redempt io n, on th e next Sep te mbe r 1. No s uch tr ansfe r a nd
depos it need be made to th e Principa l Account if th e amo unt co nta ined t he re in is at lea st eq ua l to the
princip a l to beco me due on the next Septemb er I o n a ll of the Out s tand in g Seria l Bo nd s and Te rm
Bo nd s. A ll mo neys in the Prin c ipa l Acco unt s ha ll be used and withdrawn by t he T ru stee so le ly for the
purpo se o f pay in g th e prin c ip a l of th e Seria l Bond s a nd th e Term Bond s, in c ludin g by mandato ry
sink ing account red empti o n, as th e sa me s ha ll beco me du e a nd payable.
(c) Re se rve Acco unt. Th e re is he re by esta b lished in the De bt Se rvice Fund a
se parate acco unt kn o wn a s th e "Re serve Account" so le ly as sec urit y for payme nts payab le by t he
S ucces so r Agency purs uant to thi s Sec ti on 4.03 and purs ua nt to any Supp leme ntal In denture, wh ich
s ha ll be he ld by the T rus tee in tru st for th e be ne fit o f the Owners o f th e Bonds. The Re se rve
Re quire me nt for the 2 0 16 Bo nd s w ill be sat is fi ed by th e delivery of the Re se rve Po li cy by th e 20 16
Ins urer on th e C los in g Dat e \i ith respect to the 2016 Bo nd s .
Exce pt as prov id ed in th e prece d in g pa ragraph and a may be prov id ed in a
Suppl ementa l Ind e nture , in th e eve nt that th e a mo unt o n depo s it in th e Rese rve Account a t any time
becom es less th a n th e Reserve Re q uire me nt, th e T ru stee sha ll pr o mp tly notify t he Successo r Age nc y
of such fact. Upo n re ce ipt of any such noti ce and as prompt ly as is pe rmitt e d by the Law, the uccesso r
Agency sha ll tra nsfe r to th e T ru s tee a n amo unt fr o m the pecia l Fun d suffic ient to ma inta in th e Reserve
Requirem e nt o n deposit in the Rese rv e Acco unt.
T he a mo unt s ava il ab le under th e Rese rve Po licy sha ll be use d an d withdrawn by t he
Trustee so le ly for the purp os e of mak in g tran sfers to the Interes t Acc ount and the Pr incipal Acco unt in
such order of pri o rit y, in th e event of any defici e ncy at a ny tim e in any o f suc h acco unts w ith respect
to the pay ment of debt se rv ic e on th e 20 16 Bond s.
Except as prov ided above, th e amount o n depos it in the Rese r ve Account shal l be
ma in tain ed at th e Reserve Require ment at all tim es pri o r to the payme nt of th e Bo nd s in fu ll. If th e re
sha ll th en no t be sufficient Pl ed ge d Ta x Rev e nu es to tr a nsfe r a n a moun t s ufficien t to ma int a in t he
Rese rve Requi re me nt o n deposit in the Re se rve Acco unt , th e Successo r Age ncy s ha ll be ob ligated to
continue ma kin g tran sfer s as Pl edged Tax Rev e nu es beco me ava il ab le until the re is an a mo unt
s uffici e nt to mai nt a in the Rese rve Requirement on depos it in the Reserve Account. No s uc h transfer
a nd de pos it nee d be made to the Re se rve Acc o un t so lo ng as t he re s ha ll be o n depos it there in a sum at
least equal to th e Re se rve Re quireme nt.
A ll money in th e Re se rve Account shall be used a nd wit hdraw n by the T ru stee sole ly
for th e purpose o f making tran sfe rs here under t o th e Inte re st Ac count , the Prin c ipa l Acco un t a nd t he
Sinkin g Accoun t , in the event of any de ficiency at any tim e in any of suc h accou nts or for th e re tir e me nt
of all th e Bonds then Outsta ndin g, ex cept that so long as the Successo r Age nc y is not in defau lt
here und e r or und e r any Parity De bt Ins trument, a ny amo unt in th e Rese rve Account in excess of the
Re serve Requirement s hal l be w ith d rawn from the Re serve Accou nt semiannua ll y on or before two (2)
Bu s in ess Day s precedin g each Ma rc h I a nd Septembe r I by the Tru ste e and de pos it ed in the Spec ia l
Fund . A ll am o unt s in the Rese rve Acco unt o n th e Bu s in ess Day precedi ng th e fina l Inte rest Payme nt
Date shall be withdrawn fr o m th e Rese rve Acc ou nt and sha ll be transfe rr ed to the Inte rest Account a nd
the Prin c ip a l Acco unt, in such orde r, to t he extent re quire d to make the de pos it s th e n required t o be
made purs uant to this Sect ion 4.03.
Th e S uc cesso r Agency sha ll have th e ri ght a t any tim e to di rect t he Tru stee to re lease
fund s fr o m t he Re serve Acco unt , in w ho le o r in part , by te nd e rin g to the T ru ste e: (i) a Qualified
2 1
Re se rve Acco unt Cred it In strum e nt , and (ii) an o pini on of Bo nd Co un se l stating t hat ne ith e r t he re lease
of such fund s nor th e acceptan ce of such Qua lifi ed Rese rve Account C redit In strum e nt w il l ca use
interest on t he Bonds t he interest on which is exc lu ded from gross income of th e owners thereof for
federal in come tax purpo ses to become includ ab le in gross inc ome fo r purposes of fed era l inco me
taxation. Upon tender of s uch items to the Tru s tee. and up o n de li very by the S uccessor Agency to the
Tr uste e of written ca lcu lation of the amo unt permitted to be re le ased from the Re se rve Account (upon
w hi ch ca lculat ion th e Tru stee may conc lu s ive ly rely). th e Trustee sha ll tran sfe r such funds from t he
Re se r ve Accou nt to the Successo r Agency to be a pp lied in acco rdance wit h th e Law.
T he Trus tee s ha ll co mp ly w ith a ll doc umentation relatin g to a Qualifi ed Re serve
Acco unt Cred it In st rum e nt as sha ll be req uir ed to mai ntain s uch Qualified Re se rve Account Credit
Instrum e nt in fu ll force and effect and as sha ll be required to receive payments the reunder in the event
a nd to the ex tent requi red to make any pay ment when and as required und er thi s paragraph (d). Upo n
th e expirati on of a ny Qualified Rese rve Account Credit In strument , th e Successor Agenc y sha ll e ith er
(i) rep lace s uch Qua lified Re serve Acco unt C re dit In strum e nt with a new Qua li fied Reserve Accou nt
Cred it In strum e nt , o r (ii ) deposit or ca use to be depos it ed w ith the Tru stee a n amo un t of funds eq ua l
to th e Re se rve Requirement , t o be der ived fr o m th e first lega ll y avai lable Pledge d Ta x Revenues .
If the Re serve Requ irement for a se rie s of Bonds is being maintained partially in cash
and part ia lly with a Qual ified Reserve Acco unt Credit In strument, th e cash sha ll be first used to meet
a ny deficiency wh ic h ma y ex ist from time to time in the Int e rest Acco un t or the Principal Account for
the purp ose of makin g payments req uired pursuant to Sect ions 4.03(a) o r 4.03(b) of t hi s Indenture w ith
respect to such se ri es of Bond s. If th e Reserve Req uireme nt for a se ri es of Bo nds is being maintained
w ith two o r more Qua lifi ed Re se rve Acco unt C red it In strum e nt s, any dra w to meet a defic iency which
may ex is t from t im e to tim e in the Interest Account or the Principal Account fo r the purp ose of makin g
payment s required pursuant to ec ti o ns 4.03(a), 4 .03(b) o r 4.03(c) of thi s In dentu re sha ll be made in
acco rd ance w ith t he te rms of s uch Qua li fi ed Reserve Acco unt C redit In str uments. If the Reserve
Requirem ent w it h res pe ct to a particu la r se r ies of Bond s is sec ured by a Qua lifi ed Re serve Accou nt
C redit In st rum e nt that re lates on ly to such se ri es of Bonds, th e calculation of Re se rve Requirement for
suc h seri es of Bo nd s sha ll be ca lcu lated on a sta nd a lo ne bas is.
The Reserve Accoun t may be maintained in the fo rm of one or more sepa rate s ub-
acco unt s which are esta b lis hed for th e purpose o f ho lding th e proceeds of se pa rate issues of the Bonds
in conformity wi th applicable provisions of th e Code to the ex tent directed by the Successor Agency
in w ritin g to the T rustee.
(d) Redempti on Acco unt. A ll mo neys in th e Redemption Account s ha ll be used
and w ithdrawn by the Trustee so le ly fo r the purpo se of paying th e principal of a nd prem ium , if any,
on Bonds to be redeemed pursuant to a ny optiona l redempt ion provi s io n of a Supp lemen tal Indenture
on the date set for s uc h redemption . Interes t du e on suc h ot he r Bonds to be redee med on the date se t
for red emption s ha ll , if applicabl e, be pa id from fund s ava il ab le therefor in t he In terest Account.
No twith standing the forego in g, at any tim e prior to givi ng noti ce of redemption of any such other
Bond s, th e T ru st ee may , a t the d irectio n of th e ucc esso r Agency, app ly a mount s deposited or
otherwi se to be de pos ited in the Redempti o n Account to the p urcha se of Bo nd s at public o r private
sa le, as and whe n an d at suc h price s (in c ludin g brokerage and ot her c ha rges, but exc lu d in g acc ru ed
interest on s uc h Bond s, whi ch is payable from the Int erest Account) as shall be directed by the
Succe ssor Agency.
22
Section 4.04 Rebate F und . The T ru s tee s ha ll establ is h a separate fu nd for the 20 16 Bonds
des igna ted th e '·Re bate Fund .'. Abse nt an op ini on of Bo nd Counsel th at the exc lus io n from gross
in co me fo r federa l in co me tax purposes of int ere st o n the 2016 Bond s w ill not be adversely affected,
th e Age ncy sha ll cause to be deposited in the Rebate Fund s uch amoun ts as are required to be depos ite d
th e rein purs ua nt to thi s Secti o n and th e Tax Ce rtifi ca te. A ll money at any time depos it ed in the Reba te
Fund sha ll be he ld by th e Tru stee in tru st , for pay me nt to th e U ni ted States Trea s ury. A ll amo un ts on
depo s it in th e Re ba te Fund for the 2016 Bo nds s ha ll be gove rn ed by thi s Sectio n a nd t he Tax
Ce rtifi ca te, un less th e Successo r Age ncy o bt a in s a nd de li ve rs to th e T ru stee a n op in ion of Bo nd
Co un se l th at th e exc lu sion fr o m g ross in co me of inte rest o n the 20 16 Bonds w ill not be ad ve rse ly
affec ted fo r fed e ra l in co me tax purposes if such requ ir emen ts a re not sa ti sfied . Notwith sta ndin g
a nyth in g to th e co ntrary contained he rein or in th e Tax Ce rtifi cate, t he T ru stee sha ll be deemed
co nc lus ive ly to have co mpli ed w ith the pr ov is ions o f thi s ecti o n and the Tax Cert ifi cate if the Tru stee
fo ll ows the d irec ti ons of th e Age ncy, a nd th e Tru stee sha ll have no in dependent respons ibi lity to o r
lia bili ty res ultin g fr o m fa il ure of th e Tru stee to en force co mplian ce by the Agency with th e Tax
Ce rt ifi cate or the prov is ions of thi s ecti o n.
(a) Excess In vest me nt Ea rnin gs.
(i) Comp ut a ti on. Within 55 days of th e e nd o f each fifth Compu tat ion
Yea r w ith respec t to the 20 16 Bo nds, th e S uccesso r Agency sha ll ca lcu late or ca use to be calcu lated
the am o unt of reb a tab le a rbitrage, in acco rd ance with Sec ti o n 1 48 (f)(2) of the Code a nd ect io n 1.148-
3 o f th e Re bat e Regul ati o ns (taking into acco unt a ny ap pl icab le exce pti o ns w ith respect to the
co mput at ion of th e reba tab le a rbitrage, desc r ib ed, if ap p li ca bl e, in t he Tax Ce rtifi cate (e .g . the
te mp orary in vestments excepti o n of Section 148 (f)(4)(B) and the constru ction ex pe nditu re exception
of Secti o n 148 (f)(4)(C) of th e Code), for thi s purp ose t reatin g the la s t day of the appl ica bl e
Co mputat io n Year as a comp uta ti o n date, within the meaning of Section 1.148-1 (b) of th e Rebate
Regul ations (th e ·'Rebatab le A rbit rage"). The Succe sso r Age ncy sha ll o bta in expert advice as to the
amo unt of the Rebatab le Arbitrage to co mp ly wit h thi s ectio n.
(ii ) Tran s fer. Wi t hin 55 days o f t he e nd of each fift h Co mputa ti o n Yea r
w ith respect to th e 2016 Bo nd s. up o n t he Fin a nce Directo r 's wr itten direc ti o n, a n amount sha ll be
de posit ed to th e Rebate Fund by th e T ru stee fr o m a ny lega ll y ava il able fu nd s, in c lu d in g the ot he r fund s
a nd ac co unt s establ ished he re in, so th a t th e ba lan ce in th e Reb ate Fund sha ll equa l the amo un t of
Reba table Arb itrage so ca lc u la ted in acco rd a nce w it h c la use (i) of thi s Sectio n 4.04(a). In the event
th at im med iate ly fo ll o win g th e tr a nsfe r requi red by th e prev io us sen tence, th e amo un t th en on depos it
to the c red it of the Rebate Fund exceeds th e a mo unt req ui re d to be on depo s it t he re in , up on writte n
in structi o ns from t he Finance Director, th e Tru stee sha ll w it hdraw th e excess fro m th e Reba te Fund
a nd th en credit th e excess to t he De bt Se rvi ce Fund .
(iii ) Payment to th e Treas ur y. T he Successor Age ncy s ha ll d ir ect the
T ru stee in wri ting to pa y to th e Un it ed States Trea s ur y, o ut o f a mou nts in the Rebate Fund .
(X) No t late r th a n 60 days after the end of(A) th e fi ft h Co mputat ion
Year with respect to th e 20 16 Bond s, a nd (B) each app li cab le fifth Comp utat io n Yea r thereafter, an
a mo unt equa l to a t least 90 % of th e Rebata ble Arb itrage ca lcu la ted as of the end of s uc h Comp utat ion
Yea r; a nd
(Y) Not late r th a n 60 days after th e pay ment of a ll th e 20 16 Bonds,
a n amo un t equ al to I 00% of t he Re ba tab le A rbitra ge ca lcu late d as of th e e nd o f suc h app li cable
23
Co mputati on Year, and any income attr ibutable to th e Reb atabl e Arbitrage, comp uted in accorda nce
with Section 148(f) of the Code.
(b) In th e event th at, pr ior to the tim e o f any payment required to be made from the
Rebate Fund , th e amo unt in the Reba te Fund is not suffi c ien t to make s uch payment w he n s uch
pa yment is due , th e Succe sso r Age ncy sha ll ca lc ul a te o r ca use to be calc ul ated the amo unt of such
defic iency a nd de pos it an am o unt rece ive d fr o m any lega ll y a va il ab le so ur ce, in c ludin g th e oth e r f und s
a nd acco unt s establ ished herein , equ a l to such de fi c ie ncy in th e Rebate Fund prio r to t he t im e s uch
payment is du e . Eac h payment required to be mad e pu rs ua nt to thi s Secti o n 4.04(a)(ii i) s ha ll be made
to the Int e rn a l Reve nue Serv ice Ce nt er, Ogden , Uta h 8420 I o n o r befo re t he date on wh ich such
pay ment is due. an d s ha ll be acco mp a nied by Interna l Re ve nu e Se rv ice Fo rm 8038-T prepa red by t he
Suc cesso r Age ncy , or s ha ll be made in s uc h oth e r mann e r as prov ided und e r the Co de.
(c) D ispo s ition o fUnexpended Fund s. A ny fund s rema inin g in th e Rebate Fu nd
afte r redemption a nd payment o f the 20 16 Bond s a nd th e pay me nt s desc rib ed in Section 4.04(a)(iii ),
s hall be tra ns fer red by th e Tru stee to the Succe sso r Age ncy at th e w ri tten direct ion of t he Successo r
Age nc y a nd utili ze d in any ma nn e r by th e S ucce sso r Ag e ncy.
(d) Survi val of Defeasa nce. otwit hs tandin g an ythin g in thi s Secti on 4.04 or thi s
Ind enture to th e contrary , th e ob li ga ti on to compl y w ith the requirem ents of t hi s Section sha ll s ur v ive
th e defea sance o f th e 2 01 6 Bo nd s a nd a ny Parity Bo nd s .
(e) Trustee Res po ns ibl e. The T ru st ee s hal l have no o bli ga t io ns or respons ibilitie s
under thi s Sec ti on o ther than to fo ll ow the w r itt e n d ir ecti o ns of th e Successor Agency. The Trus tee
sha ll have no res po nsib ili t y to make a ny ca lcul a ti o ns o f re bate o r to indepen de ntl y review o r ve ri fy
suc h calculati ons .
Section 4.05 Provision s Relating to Ins ura n ce Po li cy. otwith s tandin g a ny other
prov is ion he re in to t he contrary, t he prov is io ns in t hi s Section 4 .05 s ha ll app ly so long a s the In surance
Po lic y is in effect.
[TO CO M E FROM I SURER]
Secti on 4.06 Prov is ions Relating to Rese r ve Poli cy. Notwith s tand in g a ny oth e r provis io n
he re in to th e co ntrary , th e prov is io ns in th is Section 4 .06 s ha ll appl y so lo ng as t he Rese r ve Pol icy is
in effect.
[TO COME FROM I SURER]
ARTICLE V
OTHER COVENANTS OF THE SUCCESSOR AGENCY
Sec ti on 5.01 Punctual Pay me nt. Th e Success or Agen cy sha ll pu nctua ll y pa y o r ca use to
be pa id th e prin c ipa l a nd in te rest to become due in respec t of a ll th e B o nd s toge ther w ith th e premi um
thereon , if any, in str ic t confo rmity w ith the term s of th e Bo nd s and of thi s Indenture. T he uccessor
Age ncy shall fa ith fu ll y o bse rve a nd perfo rm all of th e co ndition s, covena nt s a nd requireme nt s o f thi s
Indenture, a ll Sup pl eme nta l Ind e ntures and th e Bond s . othin g he re in conta ined shal l prevent the
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Successor Agency from mak ing advances of its own moneys howsoever derived to any of th e use s or
purpo ses referred to he re in .
Sec ti o n 5.02 L imi tatio n on Additio na l I n debtedn ess; Aga in st E n c umbrances. The
Successor Agency hereby covenants that, so long as th e Bonds are Out stand ing. the Successor Agency
s ha ll not issue any bonds, notes or othe r ob i iga ti ons, ente r into any agreement o r ot herwise incur a ny
indebtedne ss, which is in any case payab le from al l o r any part of the Pl edged Tax Revenues (i) on a
bas is se ni o r to the Bo nds or (ii) on a parity w ith the Bonds ex cept for Parity Debt issued to refund a ny
of the Bond s or other Pa r it y Debt , and the n on ly if the req u irem e nts of ectio n 3 .05 are met. The
Successo r Age ncy w il l not o th erwise e nc umber, p ledge or place a ny charge or lien up o n any of t he
Pledged Tax Revenues or ot her amounts pledged to th e Bo nds s up erio r o r equa l to the pledge and lien
he rein created fo r th e benefit of the Bonds.
Sec t ion 5.03 Exte nsio n of Paym en t. The uccessor Agency w ill no t, directly or in d irect ly,
ex te nd or consent to the exte ns ion of the time for th e payment of any Bo nd o r claim for int e rest on a ny
of the Bo nd s and w i II not , d irec t ly or ind irectl y , be a party to or approve a ny suc h arrangement by
purchas ing or funding the Bo nd s or c la im s fo r int eres t in a ny other manner. In case the maturity of
a ny such Bo nd or claim fo r inte rest sha ll be extended o r funded, whether or not wit h the consent of t he
Successor Agency, suc h Bo nd o r claim for interest so extended or funded shall not be entitled. in case
of default hereunde r, to t he benefits of this Indenture, except subj ect to the prior payment in full of the
pr inc ipa l of al l of the Bond s t he n Out sta nd ing and of a ll c la im s for int erest which sha ll not have been
so extended o r funded .
Sec ti o n 5.04 Pay men t of C la im s. Th e Successor Agency shal l promptly pay a nd di scha rge,
o r cause to be paid and di scha rged. a ny and a ll lawful clai ms for lab or, materials or supplies w hi c h, if
unpaid , might become a li e n or c harge up on th e properties owned by the Succe sso r Agenc y o r upon
th e Pled ged Tax Reve n ue s or ot he r a mo unt s pled ged to the payment of the Bonds, or any part thereof,
o r upon any funds in t he hands of the Trustee, o r whi ch might impair t he sec urity of the Bond s . Nothing
he re in contained sha ll require th e Successo r Agency to make any s uch pay ment so long as the
Successor Agency in good fa ith s ha ll contest t he va li d ity of sa id c la im s.
Sect ion 5.05 Books and Acco unts; F in a ncia l S ta t e me n ts . The Successor Agency sha ll
keep , or cause to be kept, proper boo ks of re cord and acco unt s, sepa rate from a ll other rec ord s and
acco unts of the ucce sso r Agenc y and the City, in which com pl ete and co rrect e ntr ies sha ll be made
of a ll transact io ns re la t ing to th e Re deve lo pm e nt Proj ect, the Pl edged Tax Revenues a nd the pecial
Fund. Such books of record and accounts s hal l a t a ll times durin g bu s ine ss hours be subject to the
inspecti on of th e 20 16 Ins ure r, any other Ins urer and the Owners of not le ss th a n ten percent (I 0%) in
aggregate principa l a mount of th e Bonds t hen Out stand ing, o r their represe ntative s aut ho rized in
writing.
The Successor Agency w ill cause to be prepared. w it hi n two hundred and seventy (270) days
after the close of each F isca l Yea r so long as th e Bond s are Outstand in g, co mpl e te audited financia l
sta tements w ith respect to s uc h Fi scal Yea r show in g th e Ple dged Tax Revenues, a ll di sb urseme nts of
P ledged T ax Reve nues and th e fina nc ia l condition of the Red eve lo pm e nt Proj ect, including t he
balances in a ll funds and account s re lat in g to the Redeve lo pm e nt Project. as of the end of such Fisc a l
Year. The uccessor Agency s ha ll promptly furn is h a copy of such financial s tatements to the T ru stee,
th e 2016 Ins ure r a nd a ny other In surer at no expe nse and to any O wner upon reasonable reque st and at
th e expense of such Ow ner. The T ru st ee sha ll have no obli ga ti o n to review a ny financial statements
prov ided to it by th e Successo r Agency.
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The S uccesso r Age ncy agrees, con se nt s and wi ll coop e rate in good fa ith to prov id e in format ion
reasonab ly requested by t h e 20 16 1n s ure r and w i ll furth e r prov id e appropriate ly des ig nated in div idua ls
and officers to di scuss th e affa irs, finances and accou nts of the Successor Agency o r a ny o ther matter
as the 20 16 Ins urer may reason ably request.
Sectio n 5.06 Protection of Sec u r ity and R ig h ts o f Owners. The S uccessor Agency wi ll
preserve a nd protect the secu ri ty of the Bo nd s and th e ri g ht s o f the O wn ers. From a nd after the C los in g
Date w ith respect to Bo nd s, th e Bo nd s s ha ll be in contestab le by the Successor Age nc y.
Section 5.07 Pay m e n ts of Taxes a nd Oth e r C h a r g es. Except as o th e rwise p rovided
herein , the uccessor Agency w ill pay and di scha rge, o r ca use to be paid and discharged . all taxes,
service charges, assessm e nts and other governm e nt a l charges w hi c h may hereafte r be lawfully imposed
upon the Successor Agency or t he properties th en owned by the Successor Agency in th e Project Area,
or upo n th e revenu es t herefro m wh en the sam e s ha ll becom e due. Not hin g herei n con tained s hall
re qu ire the Successor A gency to m ake a ny such pa y ment so lo n g as th e uccesso r Agency in good
faith sh a ll co nt est th e va li d ity o f sa id taxes, a ssessm e nts o r c h a rges. Th e S uccessor Age ncy w ill du ly
observe and co n fo rm w ith all va li d req uire m e nts of any governm e ntal authority re lative to th e Project
Area o r any part thereof.
Section 5.08 Taxa ti o n of Leased P r ope rty. All a m o u nts derived b y the Successor Agency
pursuant to Section 33673 of th e Law w ith respect to th e lea se of property for redevelopment shall be
treated as Tax Revenues fo r a II purposes o f thi s Ind e nture.
Sectio n 5.09 D isposit ion of Property. T he Successor Agency w ill not participate in the
d is pos iti o n of a n y la nd or rea l p ro p e tty in a Project A rea to anyone wh ic h w i ll res ul t in s uc h propetty
becomin g exempt from taxation because o f publi c ownership or use o r otherwise (except property
dedicated fo r public ri g h t-of-way and except property p la nned for public owne rship o r use by the
Redeve lo pm e nt Plan in effect o n th e date o f issua nce of the 20 16 Bo nd s) so that s uc h d is p os iti o n s hall ,
w hen taken togethe r w ith o th er s uc h di s positi o n s, aggregate more than ten percent (1 0%) of the la n d
a rea in th e a ppl icable Project Area unless s uch d ispos iti o n is p e rmi tted as he re in a fter provided in t hi s
Sectio n 5.09. If th e Successor Agency proposes to participate in s uch a dispositio n , it sh a ll thereupon
appo int an In depe ndent R edevelopment Con s ultant to report on the effect of said proposed disposition.
If th e Report of the Inde pe ndent Redevelo pm e nt Con ult a nt concludes th at the securi ty of the Bonds,
or th e ri g ht s of t he S uc cesso r Agency. th e Bondowne rs and the Trustee hereunder w ill not be materia ll y
impa ired by sa id proposed di s pos iti o n, t he S uccesso r Agen cy m ay thereafter make s uc h dispos itio n.
l f s a id R cp01t conc ludes that s uch security w i ll b e m a teria ll y impa ired by sa id proposed disposition ,
t he Successo r Age ncy sha ll di sapprove sa id pro p osed di s pos it io n .
Sectio n 5.10 Ma in te n a n ce of P le d ged Tax Revenu es. The Successor Agency s ha ll comply
with all require me nts of t h e Law a nd t h e Di sso lu t ion Act to e n sure the allocatio n and payme nt to it o f
the Pl e d ged Tax R even u es as provided in th e Disso lu tion Act.
Sectio n 5.11 Tax Coven a n ts. In conn ecti o n w ith the 2016 Bo nd s, th e Successo r Agen cy
covena nts and agrees to co n test by co urt act ion o r oth e r w ise any assert io n by t he Un it e d S tates of
America o r a ny d epartm e nt s or agency t hereof th at t he interest received by the Bo nd owners is
includa bl e in g ross income of the recipient und e r federal inco m e tax laws o n the date of issuance of
th e 20 16 Bo nd s. otwiths ta ndin g any o the r provi s io n o f t hi s Ind e ntu re, absen t an opinion of Bond
Co un sel that the exc lus ion from g ross income of interest w ith res p ect to the 20 16 Bonds and Parity
B o nd s w ill no t be a dve rsely affected fo r fed e ra l in come tax p urposes, the uccessor Agency covenan ts
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t o co mply w it h a ll a ppli cab le require me nts of the Code necessa ry to pr ese rve such exc lu sio n fro m
g ross inco me and s pec ifica ll y cove na nts, w it ho ut limi t ing the ge ne ra li ty of th e fo rego ing, as fo ll ows :
(a) Pr iva te Act iv it y. Th e Su ccesso r Age nc y wi ll take no act io n or refrain fr om
ta k in g a ny ac ti on or ma ke a ny use of th e proceeds of the 20 16 Bond s or Par ity Bo nd s o r of any o th er
mo nies o r prope rt y whi ch wo u ld ca use th e 2 0 16 Bonds or Pa rity Bonds to be "pri va t e ac ti v it y bo nds"
w it hin th e mea n ing of Secti on 141 o fthe Code;
(b) A rb itrage . T he Succ esso r Age ncy w ill make no use of th e procee ds ofthe 20 16
Bo nd s o r Parity Bo nd s o r of an y o th e r a mounts or prope rt y, regard less ofthe so ur ce, or take a ny act io n
or refr a in fro m tak in g any act ion whi c h w ill ca use th e Bo nds or Pa rit y Bonds to be "a rbitrage bonds''
w ithin the mea ni ng of Secti o n 148 o f the Co de;
(c) Fed e ra l G ua ra nt y. T he Successo r Age ncy w ill make no use of t he proceeds of
th e 20 16 Bo nd s o r Pa ri ty Bo nds o r ta ke o r o m it to ta ke a ny ac t io n th at wou ld ca use th e 2016 Bo nds o r
the Pa rity Bo nd s to be "fed e ra ll y g ua ra nt ee d" w it hin t he mea ni ng of Sect ion 14 9(b) of th e Co de;
(d) In fo rm at ion Repo rti ng. T he Successo r Age ncy wi ll take o r ca use to be ta ke n
a ll necessary act ion to compl y w ith th e inform atio na l repo rt ing requ ireme nt of Section 149(e) of the
Co de ;
(e) Hed ge Bo nds. The Successo r Age ncy w ill make no use of th e proceeds of the
20 16 Bond s or a ny Pa rity Bonds or a ny o the r a mount s o r property, rega rd less of th e sou rce, o r take
a ny a cti on o r refr a in fro m ta kin g a ny ac tio n tha t wo uld ca use e ith er any 2016 Bo nd s or t he Pa rit y
Bonds to be co ns id e red "hedge bo nds" w ithi n th e mea nin g of Sect io n 149(g) of t he Code un less t he
Successo r Age ncy ta kes all necessa ry ac ti o n to ass ur e complian ce w ith t he re quiremen ts of ec t io n
149(g) of t he Co de to ma inta in the exc lu s io n fr o m g ross in come o f inte rest on the 20 16 Bonds a nd a ny
Pa ri ty Bond s fo r fe de ra l in co me tax purposes; and
(f) M isce ll a neo us. T he Successo r Age nc y w i ll take no ac t io n o r re fr a in f ro m
t ak ing any act ion inc o ns iste nt w ith it s ex pectat ions sta ted in t hat ce rta in Tax Ce rtifi ca te exec uted by
th e Successo r Age ncy in co nn ec ti o n w it h each iss ua nce of 20 16 Bo nds a nd Par ity Bonds and w ill
co mp ly w ith th e cove nants and req uire me nt s sta ted th e re in a nd incor po rated by re fe re nce here in.
Secti o n 5.12 C ontinuin g Di sclos ure. T he uccesso r Age ncy here by covena nts and agrees
th at it w il l co mp ly w it h a nd ca rry o ut a ll of th e prov isio ns of th e Continu in g Disc los ure Ce rti fi ca te.
No tw ithstandin g a ny o th e r prov is io n of th is Inde nture, fa il ure of th e S uccesso r Age ncy to co mp ly w it h
th e Co nt in uin g Di sc los ure Ce rtifi ca te s ha ll not be cons ide red a n Eve nt of De fa ult ; however, th e Trustee
a t the requ est of a ny Pa rt ic ip a t ing Underw rite r (as de fin ed in t he Co ntinui ng Di sc los ure Ce rt ifica te) or
the ho lde rs of a t least 25 % aggregate pr in c ipa l a mo unt of Outs tand ing Bonds, sha ll , but o n ly to t he
ex te nt the T rus tee has been ind emnifi e d fro m a nd aga in st a ny loss, li abi lity, cost o r ex pense, incl udi ng,
w it hou t li mita ti o n , fees a nd ex pe nses of its attorn eys a nd a dv iso rs an d add iti o na l fees a nd ex pe nses of
the T ru stee, take s uc h act ions as may be nec essa ry a nd ap pro pr iate to compe l pe rfo rma nce, in clud in g
seek in g ma ndate o r spec ifi c pe r fo rma nce by co urt orde r.
Sec ti o n 5.13 Complia nce w ith the Di sso luti o n Ac t. The S uccesso r Age ncy sha ll comp ly
w it h all o f th e re quire me nt s o f th e Law a nd th e Di sso luti on Ac t. Wi th o ut li m itin g t he gene ra lit y of th e
fo rego in g, the Successo r A ge ncy cove na nts and ag rees to fi le a ll requ ired state me nts and hol d a ll p ublic
27
hearin gs re quire d under th e Di sso luti on Act to assure co mpliance by the Suc cesso r Agency w ith it s
cove nants he re under.
Fu rth e r, it w ill tak e all ac ti o ns required under the Di sso lution Act to inc lu de:
(i) sched uled de bt serv ice on the 20 16 Bond s a nd a ny Pa rity Debt
and any amount required unde r thi s Ind en ture to repleni sh the Re se rve Account
estab lish e d he re und e r or th e rese rve account es tab li shed un de r any Parity Debt
In strument, and
(i i) amou nt s due to any Insurer under an in sura nce or su rety bond
agreement ,
in Recog ni zed Ob li gat io n Payment Schedul es for each ROPS Peri od so as to enable the Audito r-
Cont ro ll er of the Co unty of Los Ange les to di stribut e from the Redeve lo pment P rope 1t y Ta x T ru st
Fu nd t o th e Successo r Age ncy's Redeve lo pment Ob li gat ion Ret ir eme nt F und o n each J anuary 2 and
June I amo unt s requ ired for th e Successo r Agency to pay pr in cipa l of, and intere st on, th e Bonds
coming due in the respective ROPS Period an d to pa y a mo unts owed to a ny In s urer, as we ll as the
other amount s set forth above.
[In o rd e r to accomp li sh the forego ing, on or before eac h Feb ru ary I (or at such earlier time as
may be required by the Di sso luti on Ac t), for so long as a ny Parity Debt is outstandin g , the Successor
Agency s hall submit a n Ove rs ig ht Board-app roved Recog n ized Obligation Pay ment Sc hedu le to the
State Depa rtment of Fin ance a nd to the Audito r-Cont ro ller of th e Coun ty of Los Angeles that sha ll
include (i) a ll debt serv ice due o n a ll Outstand in g Parity Debt co min g due du rin g t he applicable ROPS
Pe riod as we ll as al l amo unt s due and ow ing to th e 20 16lnsurer hereunde r or to a ny other Insure r, and
(ii ) a ny am o unt required to cure any defic ie nc y in th e Re se rve Account pursuant to thi s Ind enture o r a
reserve account estab li shed und er any Par ity De bt In trument (in c lu d ing any amo unt s required due to
a draw o n th e Quali fi e d Reserve Acco unt Cred it In s tr um e nt as we ll as a ll amoun ts du e and ow in g to
the 20 16 In s ur e r he reunder).]
In the eve nt the provis io ns se t fort h in the D isso lution Act as of the C lo sin g Date of the 20 16
Bonds that relate t o the filin g of Recogn ize d Obli ga ti on Payment Schedules are amended o r modified
in a ny manner, the Succe ssor Agency agrees to take a ll such action s as are necessary to comp ly w ith
such amended or mod ifi ed provis io ns so as to e nsure th e time ly payment of debt se rvice on th e 20 16
Bond s a nd oth e r Pa rity Debt and , if th e timin g of di stributio ns of the Redeve lopm e nt Pro perty Tax
Tru st Fund is changed, [the rece ipt of (i) not less th a n o ne ha lf of the debt se rv ice due during eac h
calenda r year on a ll Out standin g Bonds prior to March I of such calendar year, a nd (ii) the remainde r
of debt se rvice due durin g suc h ca le ndar yea r o n a ll Out standing Bond s pri o r to the next s ucceeding
September 1.]
Section 5.14 F urther Assurances. The uccessor A ge nc y wi ll adopt, make, execute and
deliver any a nd a ll s uch furth e r reso luti ons, in strum ents a nd ass ur ance s as may be rea so nably nece ss ary
or proper to ca rry out the in tenti on or to faci lit ate th e perfo rm a nce of th is Ind ent ure , and for the bette r
ass urin g a nd confi rmin g unto th e Owne rs of the Bo nd s the rights and benefits provided in this
Indentu re.
Section 5.15 Last and Final Recognized Ob li gation Pay m e nt Sc hedule. The uccessor
Age ncy sha ll prov id e the Trustee and each In surer of Outsta nd ing 20 16 Bonds or Parity Debt w ith
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co pie s of (a) a ny Reque st for Las t and F inal ROP S Approva l s ubmitted by the Succe ssor Agency a nd
(b) any and a ll co rres pond e nce re ce ived from th e Depa rtm e nt of Fin a nce rega rding a Reques t fo r Last
and Fin a l ROPS Approva l, up o n rec ei pt there of. In th e eve nt that the Succes sor Agency and the
Departm e nt o f Finance sc hedu le a meetin g o r te leph o ne co nference to di scuss a w ritte n denial by the
Departme nt of F in a nce of a Req ues t fo r La s t and Fin a l ROPS App roval, the Successo r Age ncy s ha ll
ti me ly noti fy the T ru s tee a nd each Insurer of Out s tandin g 2 0 16 Bo nd s or Parity Debt of s uc h meetin g
or te leph one co nfe rence. Th e Tru s tee sha ll , and , if th e s ubjec t of t he mee t and con fer cou ld imp act th e
pay me nt o f or secu r ity for In sured Bo nd s o r Po li cy Costs, each p o te nti a ll y a ffec ted In surer shall , have
the ri ght to parti c ipate in th e mee tin g o r te leph o ne co nfe re nce either by ap peara nce w ith th e uccessor
Age nc y or thr o ugh w ritte n submi ss ion as determin ed by th e T ru s tee and such Ins ure r. In t he event t he
Succe sso r Agency receives a de ni a l o f a Requ est for La st and F ina l ROP Approva l, whet he r relat in g
to In s ure d Bo nd s o r no t, and s uc h denia l co uld de lay th e rece ipt of tax reve nues necessary to pay debt
se rvice , Po li cy Cos ts, o r o th er am o unt s owin g to a n In surer , the Su ccesso r Age ncy agrees to coo pe rate
in good faith w it h th e In s ur e r a nd th e Ins ure r sha ll rece ive pro mp t not ice of a ny s uch even t and sha ll
be p ermitt ed to atte nd a ny mee tin gs w ith th e Successor Age ncy and th e Departme nt of F inance re la tin g
to such even t a nd to di sc uss suc h matte rs w ith th e De pa rtm ent of F inance d irect ly .
ARTICLE VI
THE TRUSTEE
Sectio n 6.01 Duties, Immunities and Liabiliti es of Trus tee .
(a) Th e Tru ste e shall , pri or to th e occ urre nce of an Event of Defau lt, a nd afte r t he
c urin g or wa iver o f a ll Event s o f Defa ult w hich may have occ urred, perfo rm s uch dutie s and o nl y such
du t ies a s a rc s peci fically set forth in th is Indenture a nd no im pl ied cove na nt s, d uti es or ob li ga ti ons
s ha ll be read into thi s Ind e nture aga in st th e Trus te e. T he T ru stee sha ll , durin g t he existence of any
Eve nt of Defa ult (whi c h has not bee n cured o r wa ived), exe rci se such o f t he ri ghts a nd powe rs ves ted
in it by thi s Ind e nt ure, and use th e same deg ree of care a nd skill in th e ir exe rc ise, as a prud ent man
wo uld exe rc ise o r use und er the circumstance s in t he co ndu ct o f hi s own affa ir s.
(b) Th e uccesso r Age ncy may remove th e Trustee at any tim e, but on ly w ith th e
co nse nt of a ll In s urers, up o n thirty da ys' prior wr itten notice, un less a n E ent of D efault sha ll have
occurred and then be co ntinuin g. and sha ll re move th e T ru s tee (i) if a t a ny tim e requ ested to do so by
a n in strum e nt o r co nc urren t in st rum ents in wr it in g s ig ned by the Ow ne rs of not less th an a major it y in
aggregate prin c ipa l a mount of th e Bonds t hen Out stand in g (or th e ir a tt o rn eys dul y a uth or ized in
w ritin g) or (ii ) i f at a ny tim e th e Success or Agen cy has kn ow ledge t hat th e Tru stee sha ll cease to be
e li g ibl e in acco rdan ce w ith s ub sec t io n (f) of thi s Section, or s ha ll beco me incapa ble of act ing, o r s ha ll
be adjud ged a bankrupt o r in so lven t, o r a rece ive r of t he Tru stee or it s pro perty shall be appoi nt ed, or
a ny publi c officer sha ll tak e co nt rol o r c harge ofthe Tru stee or of its pr o pe rty or affa irs fo r t he purp os e
of re habilita ti o n , conse rvati o n o r liqu id a ti o n. In e ach ca se s uc h rem ova l shall be accompl ished by t he
g ivin g of writte n not ice of s uc h re mova l by th e Successo r Age ncy to th e Tru stee, w ith a copy to a ny
In sure r, w he re up on t he Succ esso r Age ncy sha ll appo int a s uccesso r Trustee by a n in st rument jn
writ in g.
(c) T he Tru s tee may at a ny tim e re s ign by g iv in g w ri t te n no tice of such res ig na ti on
to the Successo r Age nc y and by giv in g th e Owne rs a nd any In s urer no ti ce of s uch res ig na ti o n by fir s t
c la ss ma il , posta ge prepa id , at their res pective addresses show n o n th e Re gistrati on Books . Upon
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receivin g s uc h not ice of res igna ti o n, the Successo r Age ncy s ha ll pro mpt ly a pp o in t a s ucces so r Tru stee
by a n in s trum ent in wr it in g, w it h no ti ce o f such a pp o in t me nt to be furni s hed to a ny In su re r.
(d) An y re mova l or res ig na ti on of th e Tru stee and appo in tme nt of a successo r
Tru stee s ha ll be co me effecti ve o nl y upo n acce p ta nce o f appo in tme nt by th e s uccessor Tru stee. J f no
s uccesso r T ru stee s ha ll have bee n a pp o int ed and have accepted appointment w ithin forty -five (45) days
of g ivin g noti ce of re mo va l o r notice of res ig nati o n as afo resa id , t he res igning T ru stee o r any Owne r
(o n be ha lf o f s uc h Owne r a nd a ll ot her Owne rs) may pet it ion a ny cou rt o f compete nt jurisdictio n at t he
ex pen se o f th e Suc cesso r A ge ncy fo r th e a pp o intm e nt o f a successo r Trustee, and s uc h co urt may
th e re upon , a ft er s uc h no ti ce (if a ny) a s it may de e m pro pe r, ap po int s uch s uccessor Trus tee. Any
s uccesso r Tru s tee ap po inted un der thi s Ind e nture sha ll s ign ify its acceptance o f suc h appo intme nt by
exec uti ng , a ck now ledg in g a nd delive rin g to the Successo r Agency and to its pre decesso r Trustee a
written acce pta nce t he reo f, and thereupo n suc h succe sso r Trustee, without any fu rthe r act, deed o r
co nveya nce, s ha ll beco me ve sted w it h a ll t he moneys, estates, propertie s. rig ht s, powers, t rusts, dut ies
a nd o bliga ti ons of suc h predecesso r Trus tee, w ith lik e effect as if or ig ina lly named Tru s tee he re in; but,
neve rth e less a t th e Writte n Re qu est of t he Su ccessor Age ncy or th e request of the s uccesso r Tru stee,
such predecess o r T ru stee sha ll execute a nd de l ive r any an d a ll inst ru men ts of co nveya nce or fu rt he r
ass ura nce a nd do suc h oth e r things as may rea so na bl y be requ ired for mo re fu lly a nd certain ly vest in g
in a nd confirming to s uch successor T rustee a ll th e ri g ht , titl e a nd in teres t o f s uc h predece ssor T rustee
in a nd to any prope rt y held by it under t hi s Ind enture and sha ll pay over. tra ns fer , assign and de liver to
th e successo r T ru stee a ny mo ney o r other pr ope tty s ubject to th e tru st s and co ndi t ions herein set fort h.
Up on req uest of th e succ esso r T rus tee, th e Successo r Age ncy s ha ll ex ec ute a nd de li ve r a ny a nd a ll
in strum ent s as may be reaso nab ly re quired fo r mo re f ull y a nd cer ta inl y vestin g in a nd co nfi rmin g to
s uc h successo r Tru s tee all s uc h moneys , esta tes, pr ope rti es, ri g ht s, powe rs, tr usts , dut ies a nd
o bli gati o ns. Upo n acce pta nce o f ap po intm ent by a successor Trustee as prov id e d in t hi s subsec ti o n,
th e Su cces so r Agency s ha ll cau se ei th er th e predecesso r T ru stee or the s uccesso r T rustee to mail a
not ice of th e success io n of suc h Trustee to th e tru s ts here und e r to eac h rat in g age ncy wh ic h then ha s a
cu rre nt rat in g on t he Bo nd s a nd to the Ow ne rs a t th e ir respec ti ve add re sses show n o n t he Regis tra t io n
Boo ks .
(e) If an Eve nt of De fa u lt he re un der oc cu rs w ith re s pec t to a ny Bo nds of w h ic h t he
T ru stee has been g ive n o r is deemed to have no ti ce, as prov id ed in Sec t io n 6.03(d) he reo f, then the
T ru stee sha ll imm ed iate ly g ive w ritt e n noti ce th ereof. by firs t-class ma il to the any In surer and the
Ow ne r o f each s uc h Bond , unl ess s uch Eve nt of Defa ul t s ha ll have been c ur ed be fo re the g iv ing of
suc h not ice; prov id ed, however, th at unl ess s uc h E ve nt of De fa u lt cons is ts of t he fai lure by the
Succe sso r Age ncy to make a ny pay me nt wh e n du e, th e Tru stee s ha ll , w ithin thirty (3 0) days of th e
Trustee 's know ledge thereo f, g ive uc h notic e to a ny Insure r, a nd the Tru stee, w ith t he co nsent of a ny
In sure r may e lect not to g ive suc h noti ce if and so long as the Trus tee in good fa ith determin e s t hat it
is in th e best int e rests of th e Bo ndow ne rs not t o g ive suc h no ti ce.
(f) Th e Successo r Age ncy ag rees th at , so long as any Bonds a re Outsta nd ing, the
Tru stee shall be : (i) a fin a nc ia l in stitu t io n hav ing a tru s t offi ce in th e State, hav in g (or in t he ca se of a
corp o rati o n, na ti o na l bank ing associat ion or tru s t co mpa ny in c lud ed in a ba nk ho ldin g co mpa ny
syste m, th e re late d bank ho ldin g co mp a ny s ha ll ha ve) a co mbin ed cap ita l and sur plus of at le ast
$2 50 ,000 ,000 , and subj ec t to s up e rvis io n or exa mi na ti o n by fede ra l or state a uth ority; (ii ) a sta te-
chartered co mm e rc ial bank t ha t is a me mb er of the Fede ra l Reserve yste m hav in g at least
$1,000 ,000 ,000 of asset s; or (iii ) a n e ntity oth e rw ise app rove d by all Insu re rs in wri ting. If such
fi nan c ia l in st ituti o n publi s hes a repo tt o f c o nd iti on a t least a nnu a ll y, pur sua nt to law or to th e
require ments o f any sup erv is in g o r exa m inin g a uth orit y above refer red to , the n for th e purpose of thi s
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s ubsection the combined capital a nd surplus of such financial in stitut ion sha ll be deemed to be it s
co mbin ed capita l and s urplu s as set fo rth in it s mo s t re ce nt rep ort of condition so publi shed. In case at
a ny time the Trustee shall cease to be elig ibl e in acco rd ance with t he pr ov is ions of thi s sub secti o n (f),
the Tru stee sha ll resig n imm ediate ly in th e ma nn e r and with the effect s pec ified in th is Sect io n.
Section 6.02 Merger or Consolidation. An y bank, nati o nal bankin g association or tru st
company into which the Tru stee may be merge d o r co nverted or with " hich ma y be con so lidated or
any bank, nationa l ba nkin g associatio n o r tru st company resu ltin g from a ny me rge r, convers ion or
conso lid ation to whi c h it sha ll be a party or any bank , na ti o na l bankin g asso ciation o r tru s t c o mpan y
to whi ch th e Tru stee may se ll o r tran sfe r a ll o r s ub stantiall y a ll of it s corp orate tru st bu sine ss, prov ided
suc h bank , nati o nal bankin g assoc iati o n o r tru st co mp a ny s hall be e li g ibl e under sub secti on (f) o f
Sec ti on 6.0 I , sha ll be the successo r to such T rustee w ith o ut the executi on o r filing o f an y paper o r any
further act , a nythin g he rein to th e co ntrary no twith sta ndin g.
Section 6.03 Liability of Trustee.
(a) The re c ita ls o f fact s here in and in the Bo nd conta ined shal l be taken as
statements ofthe Successo r Agency, and the Tru stee s ha ll no t ass ume res po ns ibility for th e correctness
of the same , no r make any representation s as to the va lidi ty o r suffi c ien cy of thi s .Ind enture or o f the
sec urit y for the Bo nds or the tax sta tu s of intere st th e reo n no r s ha ll in c ur a ny res po ns ibility in respec t
thereof, other th a n as expre ss ly s tated herein. The Trustee s hall , howeve r, be re spo ns ible fo r it s
rep resentations co nt a ined in it s certifi cate of authenti ca ti o n o n the Bond s. Th e Tru s tee shal l not be
I iab le in co nn ec tion with the pe rfo rm a nce of its duties here und e r, exce pt fo r it s own ne g I ige nce or
mi sconduct. T he Trustee s ha ll not be li ab le for th e ac ts o f a ny a ge nts of the Tru stee se le c ted by it w ith
due care. The Tru stee and its o fficer s a nd em pl oyee s ma y become the Owner of an y Bond s w ith th e
same ri ght s it wo uld have if they were not Trustee and , to the extent pe rmi t ted by law, ma y act as
de pository fo r a nd permit a ny o f its offi cers or directors to ac t as a me mb er of, or in a ny ot he r capac ity
w ith res pect to, a ny committee fo rmed to pr o tect th e ri ghts of th e Owners, whether or no t such
comm ittee shall re pre sent the Own e rs of a maj o rity in pr in c ipal am o unt of th e Bo nd s then Out standing .
(b) The Tru stee s ha ll not be li able wit h re spect to any actio n taken o r o mitt ed to be
take n by it in acco rdance w ith th e direc tion of the Owners of not less than a maj o rit y in agg regate
princ ipal amount o f the Bo nd s at the tim e Out sta ndin g rel atin g to th e tim e, method and place o f
co ndu ctin g a ny pr oc eeding fo r an y re medy availab le to the T ru stee, o r exerc is in g a ny tru st o r powe r
co nferred up o n the Trustee un der thi s Ind e nture.
(c) The Tru stee shall not be li ab le fo r a ny action tak en by it a nd be lie ve d by it to
be authori zed or wit hin the di scretion o r rights or powe rs conferred up o n it by thi s Ind e nture, except
for ac ti ons aris in g from th e neg li gence or mi sco ndu ct of the T ru stee. Wh e re th e T ru stee is g ive n the
pe rmi ss ive ri ght to do thin gs e numera ted in thi s Ind e nture, s uch ri g ht s hall no t be co nstrued as a
mand a tory duty.
(d) The Tru s te e shall not be dee med to have kn ow ledge o f any Eve nt of Defa ult
here und e r unle ss and until a resp o ns ibl e officer shall ha ve actual kn ow ledge thereof, o r sha ll have
re ceived written not ice th ereof from the S ucces sor Agency a t it s Pr inc ip al Co rp o rat e Trust Offic e. In
th e abse nce o f such act ual know led ge or no ti ce , th e Tru stee may conclu s ivel y ass um e that no Event of
Defau lt ha s occ urred a nd is continuing und e r thi s Ind e nture. Except as o therwi se expres s ly pr ov id e d
he rein , the Tru stee sha ll not be bound to a scerta in or inquire as to th e perfo rm a nce o r obse rva nce by
any ot he r part y o f any of th e term s, cond it ions , covena nt s or agreem e nts herein o r of any of the
3 1
doc um ents execu ted in connection wi th the Bond s, o r as to th e existence of a n Eve nt of Defa ult
there und er. The Tru stee shall not be res pons ibl e fo r th e va lidity or effect ive ness of an y co ll ateral g iven
t o o r he ld by it. Without limitin g th e ge ne ral ity of th e forego in g, the Trus tee ma y rely conc lu s ively on
th e Succes so r Agency's certificate s to esta bli s h the Succes sor Agenc y's com pliance w ith its fi nanc ial
cove nan ts he re unde r, includin g, witho ut limit a ti o n, it s cove nan ts re ga rdin g the de pos it of Pl edged Tax
Re venue s into th e Spec ia l Fund a nd th e in ves tm e nt and a pp licati o n of moneys o n depo s it in t he pec ia l
Fund (other t han its cove nan ts to transfe r s uc h moneys to th e Tru s tee when due hereunder).
(e) The Tru stee sha ll have no li abi lit y o r o bligation to th e Bondowne rs w it h res pect
to the pa yment of d e bt serv ice o n the Bo nd s by th e S uccesso r Agency or w ith re s pect to the observance
o r pe rform ance by th e Successor Agency o f the ot he r cond iti ons, covenants a nd te rm s co ntaine d in t hi s
Indenture, o r w ith respect to the inve stment o f an y moneys in an y fund or acco unt es tabl ished, he ld o r
ma int a in ed by th e Succe sso r Agency purs ua nt to thi s Inde nture or ot he rwi se.
(f) No pr ov is ion of thi s Indenture s hal l requir e th e Tru stee to expe nd o r ri s k its
ow n fund s o r ot he rwise in cur a ny fin a ncia l liabili ty in th e pe rforman ce of any o f it s dutie s hereunder,
o r in the exe rci se o f a ny of it s ri ght s or powe rs . Th e Tru s tee shall be en titl ed to int erest on al l amoun ts
adva nced by it a t t he max imum rate pe rmitt ed by law.
(g) The T ru s tee ma y exec ut e a ny of the tru sts o r powe rs hereu nde r or perfo rm a ny
dutie s he re und e r e ith e r d irectl y or by or thro ug h agent s, a tto rn eys or rece ive rs and th e Tru stee s hall
not be re s po nsibl e fo r any inte nti o nal mi sco nduct o r ne g lige nce o n t he pa rt of any agen t, atto rn ey o r
receiver appo in te d with due ca re by it he reu nd e r.
(h) The Tru stee sha ll hav e no respo ns ibilit y, op in ion , o r liabi lit y w ith resp ect to
a ny info rm at io n, state men ts or recita l in any offe rin g me mora nd um o r ot he r di sc los ure mate ri a l
prepared o r di stribute d w it h re s pec t to th e iss uance of th e Bond s.
(i) Be fore takin g any ac ti o n un de r A rti c le VIII o r thi s Article at th e requ est of the
Ow ners o r a ny Insure r, th e Tru stee may require that a sa ti s factory ind e mni ty bond be furni shed by the
Owners or any Ins urer for the re imburse me nt of all ex pe nses to whi ch it may be put a nd to pro tec t it
aga in st a ll li abi lit y, exce pt l ia bility whi c h is adjud icated to have resu lt ed from it s neg lige nce or wi llful
mi sconduct in co nnect io n w ith a ny ac ti on so tak e n.
U) The Tru s tee sha ll ha ve the ri ght to accept and act upo n in s tru cti ons, in c ludin g
fund s transfe r in stru c t ions (''In st ructi o ns") give n pur suant to thi s Ind enture and de live red us ing
Electron ic Mea ns ("Electro ni c Mean s" sha ll mea n th e fo ll ow in g co mmuni cation s met hods: e-mai l,
fac simil e tra nsmi ss io n, sec ure e lectroni c tran smi ss io n co ntain ing app licable a uth o ri za ti o n codes,
password s and/or a uthentication ke ys iss ued by th e T ru stee, o r a noth e r method o r syste m speci fied by
the Trustee as avai lable for use in co nn ect ion with it s serv ices here un de r); prov ided , however, t hat th e
Suc cesso r A ge ncy sha ll pr ovide to the T ru stee a n in c umbency certificate li stin g offi ce rs w ith t he
aut ho rity to prov id e such Instructi o ns ("A uth o ri zed Offi ce rs") and con ta inin g s pec imen signat ur es of
s uc h Aut ho ri zed O ffi ce rs, whi c h incumbency certifi c at e sha ll be amended by the Succe ssor Age ncy
whene ve r a person is to be added or de le ted fr o m th e li stin g. l f th e S uccessor Agenc y elects to g iv e
th e Tru stee In stru ct io ns usin g Elec tr o ni c Mean s a nd th e Tru s tee in its di sc ret ion e lec ts to act up on suc h
In stru c ti o ns, th e Tr ustee 's und erstandin g o r s uch Instru c tions shall be deemed co ntro llin g. T he
Succe sso r Age ncy understand s a nd agrees th at th e Tru stee cannot det ermine the id e nti ty of t he act ua l
se nd er of s uch Inst ruct ions and th a t the Trus tee shall co nc lu sive ly presum e that directio ns th at purpo rt
to have bee n se nt by a n Auth orize d Offi ce r li sted on th e in c umb e ncy certificate prov ided to th e Tru stee
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have bee n sen t by s uch Auth orize d Office r. T he S uccessor Agency s hall be res pon s ibl e for ens urin g
that o nl y A uth o ri zed Officers tr a nsmi t s uc h In stru ct ions to th e Trustee and t hat the Successor Agency
and a ll Auth orized Office rs a re so le ly re s po ns ibl e to sa feguard the use and co nfidentia lit y of app licab le
user a nd a utho ri zati o n codes, passwo rd s a nd /o r a uthenti ca ti o n ke ys up o n rece ip t by the uccesso r
Age ncy. Th e T ru stee s ha ll not be li ab le for a ny losses. costs or expenses a ri s in g direct ly o r indirec t ly
fro m th e Tru stee's re li ance up on and co mpli a nce wi th s uch Ins tru ctions notwith sta ndin g suc h
d ir ec ti o ns con fli c t or a re in co n iste nt w ith a s ub se qu e nt wr itt e n in st ru c ti o n. The Successor Age ncy
ag rees: (i) to ass ume a ll ri sks aris in g o ut o f th e use of Elect ro ni c Mea ns to s ubmit In str uc ti o ns to t he
Tru stee, in c lu din g w ith o ut limita ti o n th e ri s k of th e Trus tee ac tin g o n un a ut hori ze d In stru c ti o ns, an d
the ri s k of interce pti o n and mi s use by third parti es; (ii ) that it is fu lly in fo rmed of t he pro tect ions a nd
ri s ks assoc iate d w ith th e va r io us me th ods of tran smittin g In stru c t ions to th e Truste e a nd that t he re ma y
be more sec ure meth ods o f tr a nsmittin g In s tru c ti o ns than the meth od (s) se lec ted by th e uccessor
Age ncy ; (i ii ) th a t th e sec urit y proced ures (if an y) to be fo ll owed in c o nn ec ti o n wit h it s tra nsm issio n of
In s tructi ons prov ide to it a co mm erci a ll y reasonable degree of protectio n in li ght of its parti c ular need s
a nd c irc um s ta nc es; a nd (iv) to no tify th e Tru s tee imm ediate ly up on lea rnin g of a ny co mp ro mi se o r
un a uth or ize d use of the sec urity proce dure s .
(k) Th e Tru s tee sha ll not be li a bl e to th e parti es hereto or deemed in breach or
defa ul t he re und e r if a nd to the exte nt its pe rformance here und e r is prevented by rea so n of force
maj eure. The te rm "forc e maj e ur e'· mea ns a n occ urrence t hat is beyo nd th e co ntrol of the Trustee a nd
cou ld not have bee n avo id ed by exe rc is in g du e care. Fo rc e majeure s hal l in cl ud e but not be limited to
act s of God, te rroris m, wa r, ri ots, strikes, fire, fl oo ds, earthqu a ke s, ep id e mi cs or other s imi la r
occ urre nce s.
(I) The Tru s tee s ha ll not be res po ns ib le for o r accountab le to anyone for t he
s ub sequ e nt use or app licati on of any mo neys wh ic h s ha ll be re le ased o r w ithdraw n in accordance w ith
the pro v is ions he reo f.
Sectio n 6.04 Right to Rely on Docume nts and Opinions . T he Tru stee sha ll have no
liability in act in g up o n an y no ti ce, res o luti o n, req ues t, co nsent , o rde r, ce rtificate, rep ort, o pinio n,
fa csimil e t rans mi ssio n, e lec tro ni c ma il , o r othe r pape r o r docum e nt reaso nab ly be li eved by it to be
ge nuin e a nd to have bee n s ig ned o r prescrib ed by th e pro per party or pa rt ies, a nd s ha ll not be req uired
to make any in vesti ga ti on in to th e facts or matte rs co nt a in ed thereon. The Trustee ma y cons u lt w ith
co un sel, in c luding, with o ut limitat io n, co un se l of or to the Successo r Agency, wit h rega rd to lega l
que sti o ns, and , in the ab se nce of negli ge nce o r int enti ona l mi sco nduct by t he Tru stee, th e op in ion of
s uch co un se l s ha ll be fu ll a nd co mp le te a uth o ri za ti o n a nd pro tecti on in res pect of any actio n take n o r
s uffe red by th e Tru s tee here un der in acco rdan ce th erew ith .
Th e Tr ustee s ha ll not be bo und to recogni ze a ny pe rso n as the Owne r of a Bond unle ss and
until s uch Bo nd is s ubmitted fo r in spec ti o n, if requ ired. a nd hi s t itl e theret o is estab lished to the
sa ti sfacti on of th e Trustee.
Wh e never in th e admin istrat io n of th e tru st s im posed up on it by th is Indenture the Tru stee sha ll
dee m it necessary o r des irable tha t a matter be prove d or esta bli shed pr ior to ta kin g o r s u ffering any
act io n he re und e r, s uch matter (unl ess oth e r ev id e nce in re s pect th ereof be here in s pecifica ll y
presc rib ed) may be deemed to be co nc lu s ive ly p roved a nd estab li shed by a Wr itte n Ce t1 ificate of t he
Suc cesso r Age ncy, w hich sha ll be fu ll wa rrant to th e T ru stee fo r a ny ac ti o n take n or s uffered under th e
prov is io ns of thi s Ind e nture in re liance up o n s uc h Wr itte n Ce rtifi cate, but in its d isc reti on th e Trustee
may, in li e u th ereof, accept o ther ev ide nce of s uc h ma tt e r o r may requ ire s uch a dditi onal ev id e nce as
33
it may deem re aso nab le. Th e Trustee may con c lus iv e ly rely on an y certifi cate o r rep ort of a ny
Independ e nt Acco untant o r Jnd e pendent Red eve lo pm e nt Con sultant a pp o inted by the S uccesso r
Agency.
Section 6.05 P rese rvation a nd In spectio n of Doc um ents. A ll documents received by the
Trustee under th e provi sions o fthi Indenture s ha ll be re ta ined in it s possess ion and shall be subject at
al l rea so nabl e t im es up on re aso na ble not ice to th e inspecti on of and copy in g by t he Successor Age ncy
and an y In s ur er a nd a ny O wne r, and th e ir age nts and re prese ntat ive s dul y au th o rized in wr iting , durin g
regu lar bu s ine ss ho ur s and und e r reaso nab le co nd iti ons .
Section 6.06 Compensation and I n demn ification. The Successo r Age ncy s hal l pay to t he
Tru stee fr om tim e to tim e re aso nable compensa ti o n fo r a ll se rvices rend e red under thi s Inde nture in
acco rd a nce w ith th e le tter pro po sa l from th e T rustee approv ed by th e uccesso r Agency and a lso a ll
reasonab le ex penses, c harges, lega l a nd con su ltin g fee s a nd o th e r di sbu rseme nt s a nd th ose o f it s
attorneys (inc ludin g the al loca ted cos ts a nd d isburse me nt o f in-h ou e co un sel to th e exten t s uc h
services a re not red unda nt with th ose provided by o ut s id e coun sel), agents an d e mpl oyees, in c urred in
a nd about th e pe rfo rmance of it s powers a nd duti es und e r thi s Ind e nture. T he Tru s tee sha ll have a lien
on th e Pl e dge d Tax Revenu es a nd a ll fund s and acco unt s he ld by th e Tru stee he reunder to sec ure the
pay men t to th e Trustee of a ll fee s, costs and expe nses. includin g rea so nab le compen sation to it s
expe rt s, attorneys and coun sel (inc luding th e a ll oca te d costs a nd di sburse ment of in-h o use co un se l to
the extent suc h se rvice s are not redund a nt with th ose pro vid ed by outs ide counse l).
Th e Success or Age nc y furth e r cove nant s and ag ree s to indemni fy, d e fend and save th e T ru stee
and its officer s, directo rs, age nt s and e mp loyees, ha rml es s aga inst a ny lo ss, ex pen se, in c luding legal
fee s a nd expe nses, a nd l iabiliti es wh ich it may in c ur to th e exte nt a ri s in g o ut of o r in connection with
the exe rci se a nd pe rformance of its powers and duti es he reunder, in cluding th e costs and expenses of
defendin g aga in s t a ny c la im o f li ability, but exc ludin g a ny a nd all losses, e x pe nses and li a bili t ie s w hich
a re due to th e neg I ige nce o r mi sco nduct o f the Tru stee. it s offic e rs, directors, agent s or empl oyees .
T he ob li gati o ns of the Successo r Age ncy and th e r ig ht s of th e T rustee und e r this Secti on 6.06 shall
survive res ig na t ion or re mova l o f th e Trustee und er thi s Ind e nture a nd pay ment o f the Bo nd s a nd
di sc harge o f thi s Ind e nture.
Section 6.07 Deposit and Investmen t of Moneys in Funds. Mo neys in th e Debt e rvic e
Fund , th e Int e res t Acco unt, th e Prin cipa l Acco unt , th e Reserve Acco unt, t he Rede mpti o n Account a nd
the Co sts of Iss uance Fund sha ll be in ves ted by th e Tru s tee in Permitt ed Investme nts as directed by the
Succe sso r Agency in t he Written Req ue st of t he Successo r Agen cy filed wit h the Tru s te e, except tha t
money s in the Rese rv e Acc o unt shall not be inv ested in Pe rmitted In vestments hav ing a maturi ty of
mo re th an five (5) yea rs, unl ess any s uc h Perm itt ed Inves tment is de scrib ed in clau se (g) of the
definition th ereof. In th e abse nce of any such Written Request of the Successo r Age nc y , th e Trustee
shall ho ld a ny s uch moneys unin vested. The Trustee s hall be entitled to rel y co nclu s ive ly upo n the
written in stru c ti o ns of t he Successo r Age nc y direc tin g in vestments in Permitted Inve st ment s as to the
fact that each s uc h inve stm e nt is pe rmitted by the laws of the State, and shall not be required to make
furt her inv est igation w it h re spect th ere to. With re s pect to a ny restricti o ns set fo rth in the above li st
whi c h emb ody lega l conc lus io ns (e.g ., the ex is tence , va lidity and pe rfec ti o n of sec uri ty inte re s ts in
co ll ateral), the Tru stee sha ll be e nti tle d to re ly conc lus iv e ly on an opini on of coun se l or up o n a
rep re sentati o n of the prov ide r o f s uc h Perm itt ed Inv estment obtained a t the Successor Agency's
expen se . Mo ne ys in the Spec ial Fund ma y be invested by the Succe sso r Age ncy in any o bli ga ti o ns in
which th e ucce sso r Agency is le ga ll y a uth orize d t o in vest its fund s. Ob li ga ti o ns purcha sed as an
inve st me nt of moneys in any fund s ha ll be deem ed to be part of s uch fund o r acco unt. All int erest o r
34
ga in deri ved fro m the in ve s tm ent of amo unt s in any of th e fund s o r accounts he ld by th e Trustee
he reund er sha ll be de po sited in th e Inte res t Acco unt ; provided, however, t hat a ll inte rest or gain from
th e in vestme nt of a mo unts in the Re se rve Acco unt s ha ll be depos ited by t he Trustee in th e Int erest
Account o nl y to the extent not requ ired to ca use the ba la nce in the Re serve Account to equa l the
Rese rve Requirement. Th e Tru stee may act as prin cipa l or age nt in th e acquis iti on o r disposition of
any in ves tm e nt and may impo se it s c ustomary charges therefo r. The Tru stee s ha ll incur no liabili ty
for losses ar is ing from any inve stm en ts made a t t he d ir ec ti o n of the Successo r Agency or o th erw ise
mad e in acco rdance w ith thi s Section. For in ves tm e nt purposes o n ly , the Trustee ma y comming le the
fund s a nd acco unt s estab li s hed he reunder, but shall acco unt fo r eac h se pa ra te ly.
Th e Successor Agen cy acknow ledges that to th e exte nt regu lations of the Comptro!!er of t he
C urre ncy or o ther appl ica ble re gulat ory e ntit y g rant th e Suc cessor Agency the right to receive
broke rage confirmations of security tran sac ti ons as th ey occ ur , the Successo r Agency spec i fica!!y
wa iv es receipt of s uch co nfirmations to t he ex ten t permi tt e d by law. The Tru s tee will furnish the
S ucc esso r Age ncy mo nth ly ca sh t ra nsactio n s tatement s w hi ch s ha!! inc lud e de ta il fo r a !! in vestment
tra nsact ions made by t he Tru stee here und e r.
A!! moneys held by th e Trustee sha !! be held in tru st , but need not be segregated from ot her
fun ds unl ess specifica !!y required by this Ind e nture. Exce pt as sp ec ifica!!y provided in thi s Indentu re,
the Trustee sha !! not be li able to pa y inte rest o n any mo neys received by it , but shall be liable onl y to
acco un t to the Successo r Agency for ea rnin gs d erived from fun ds that have bee n in vested.
T he Successo r A ge ncy covena nt s th a t a !! in ves tm e nt s of amo unt s depos ited in any fund or
acco un t crea ted by o r purs ua nt to thi s Ind enture, or othe rwise containin g gross proceed s of the Bonds
(within the mea nin g of Section 148 of the Code) sha ll be acq u ired, di s posed o f, and valued (as of the
date th at va luat io n is required by thi s Indenture or the Code) a t Fa ir Market Va lu e. The Tru tee sha!!
have no duty in co nn ec t ion w ith the determ in a t ion o f Fa ir Market Value o ther th an to follow its no rma l
practi ce in determ inin g th e va lu e of Permi tted Inv estm ents, w hi c h ma y inc lude uti lizing computerized
sec uriti es pricin g se rv ices th at may be av a il able to it inc ludin g tho se avai lable throu gh its re g ular
a ccountin g syste m.
In vestme nt s in fund s or accounts (o r p ort io ns thereof) that are s ubject to a y ield restr ictio n
und e r applicab le provis io ns o f the Code s ha ll be va lu ed by t he Succe ssor Agency at their present va lue
(w ithin th e meaning of Sec ti on 148 of the Co de). Inve st ments on deposit in the Rese rve Account shall
be va lu ed se miann ua ll y two (2) Bus in ess Days preceding eac h March l a nd Septe mber l a t their Fair
Market Va lu e.
Sec tion 6.08 Accounting R ecords a nd F in a n cia l Statements. The Tru stee sha ll at a ll
t im es keep, or ca use to be kept, proper boo ks of record a nd acco un t, prepared in accordance with
corpo rate tru st indu stry standard s, in wh ic h accurate entri es s hall be made of all transactions relating
to the proceeds of the Bonds made by it a nd a ll fund s and accounts held by the Tru stee established
purs uan t to thi s Ind e nture. Such boo ks of reco rd and acco unt s ha ll be available fo r inspec tion by the
Successor Agency up on reasonab le prior not ice, at reasonable hours a nd un der reaso nab le
c ir c um stance s. Th e Tru ste e sha ll furni sh to th e Successo r Agency, on at leas t a mo nthl y basi s, a n
accou ntin g of a ll t ra nsacti o ns in th e fo rm of its c ustomary statements re la t ing to th e proceed s of the
Bond s and a ll funds and accounts hel d by th e Trustee pur suant t o thi s Indenture.
Secti on 6.09 Othe r Transactions with Age ncy . The Trustee, eit her as prin c ipal or age nt ,
may engage in or be int ereste d in any fin ancial or ot her transact io n w ith th e Successor Agency.
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AR TICLE V fl
MO DIF ICAT ION OR AMEN DMENT OF THI S IN D ENTURE
Sectio n 7 .01 A me nd m ent With A nd W ith out C o nsent of Ow ne rs . T hi s Indenture and th e
ri ghts a nd ob li gat ions of th e Successo r Age ncy a nd of th e Owners ma y be modified or amended at a ny
time by a upp le men ta l In de nture w hi c h sha ll beco me bi ndin g up o n ad o pti o n w ith out th e con se nt of
any O wne rs or a ny In s ure r, t o t he exte nt pe rm itted by law, but o n ly for any o ne o r mo re of the follow in g
purposes -
(a) to add to the cove na nt s a nd agreeme nt s o f the uc cesso r Agency in thi s
Ind ent ur e contained. o th e r covenan ts a nd agree me nt s thereafter to be observed, in c ludin g an y cove nant
o r agreem e nt that prov ides fo r additiona l securit y for the Bo nds , o r to limit or surrend er an y ri g ht s o r
powers he re in reserved to or confer red up o n t he Success or Agency; or
(b) to make s uch prov is io ns fo r th e purpo se of c urin g an y a mb ig uity, or of c ur ing,
co rrec tin g o r s uppl ementin g any defec ti ve provi s io n contained in thi s Ind entu re, o r in any ot he r respect
w ha tsoever as t he Successor Agency ma y deem necessary or de s irable , provided under any
c irc um stances that such mod ification s or amendment s s ha ll no t, in the rea so nab le determinati on o f the
Succ esso r Agency , ma ter ia ll y adversely affect th e intere sts of th e O wner ; or
(c) to provide for th e iss uance of Pa rit y De bt in accorda nce w it h Sec ti o n 3.05; or
(d) to amend a ny pro v is io n he reof re lat in g t o th e requireme nt s of or co mpliance
w ith th e Code , to a ny ex tent w ha tsoever but on ly if and to the exte nt s uc h a me ndment will not adverse ly
affe ct the exempt ion from federal income taxa ti o n of int e rest o n any of the Bo nd s, in the op ini on of
Bo nd Co un se l; o r
(e) to co mp ly w ith a me ndm e nt s or s upp lement s to th e Di sso luti on Act; o r
(f) to co mp ly w ith the require me nt s of a provide r of a Qual ifie d Reserve Accou nt
C redit In s trum e nt.
Except a s set for th in th e preced in g paragraph , thi s Ind e nture and t he ri ghts a nd obli gat io ns of
the Succ essor Age ncy and of the Owne rs may be modified o r amended at a ny t im e by a Supplementa l
Ind e nture w hi c h s ha ll beco me b indin g when th e w rit ten co nsent of each Ins urer (but only with res pect
to any Bo nds in sured by s uc h In s ur e r) and t he Owners of a majority in agg regat e principa l amo unt of
the Bo nd s th e n Outsta nd ing a re fi led w it h th e Tru stee. No s uch modificatio n or a mendment sha ll
(a) exte nd th e matur ity of o r reduce t he interes t rate o n a ny Bond o r ot herwi se a lter o r impa ir the
ob li gation of the Successor Age ncy to pay t he principa l. in te re st , or redemption premium s (if a ny) at
the t ime and place a nd at th e rate and in the cu rre ncy prov id ed th erei n of a ny Bo nd w ith o ut th e exp ress
w r itten consent of a ny In s ur e r or th e Owner of such Bo nd , or (b) reduce t he percentage of Bo nd s
re q ui red fo r th e w ritte n con se nt to any suc h amendment o r modifi ca ti o n. In no event sha ll any
Supp le menta l In de nt u re modify any of the ri g ht s o r obli ga t io ns ofthe Trus tee w ith o ut its pri o r wr itten
consent. In no eve nt s ha ll any upp le menta llnd e ntu re modify any of th e ri g ht s o r ob li gatio ns of a ny
Insu rer w ith out it s pr io r written consen t.
Sectio n 7.0 2 E ffec t of S up ple m e nta l In de nt ure . From and after the ti me any Supplementa l
Indenture become s effect ive pursuan t to th is A11ic le VII , thi s Indenture s ha ll be deemed to be modified
36
a nd amende d in acco rdance th e rewith , the re s pec ti ve r ig hts, duti es and obli gati o ns of th e pa rties hereto
or thereto a nd a ll Owners, a s th e case may be, sh a ll th e reafter be dete rmi ned, exerci se d a nd e nfo rced
hereunder s ubjec t in a ll resp ects t o s uc h m o dificati o n and amendme nt , a nd a ll th e term s a nd co nditi o n s
of any S uppl e mental Indent ure sh a ll be deemed to be part o fthe term s a nd condition s of thi s Indentu re
fo r any a nd a ll purposes.
Section 7 .03 Endorsement or Replacement of Bonds After A mendm ent. Afte r the
effecti ve date of a ny amendm e nt o r mod ific a ti o n he reof purs uant to thi s A rtic le Vll , th e uccessor
Agency m ay, w ith the prior w ritt e n co nsent of a ny In sure r, determine th a t any o r a ll of the Bond s s hall
bear a no tation, by e ndorsem e nt in fo rm approved by th e Successor Age ncy, as to s uch a m endm e nt or
m o difi cati o n and in that case upo n demand of th e ucce sso r A gency th e Owners of such Bo nd s sh a ll
present s uc h B o nd s fo r th a t purpose at the Principa l Corpo rate T ru s t O ffi ce o f the T r ustee, and
th e re u pon a s uitabl e n otati o n as to s uch a ctio n shall be m ade o n such Bond s. In li eu of s uch no tati o n ,
the Su ccesso r Agency m ay d ete rmine that n ew B o nd s s ha ll be pre pa re d a t the ex pe n se ofthe uccessor
Age ncy and execute d in excha n ge for a ny or a ll of th e Bo nd s, and in that case, upo n dem a nd of t he
S uccesso r Agen cy, th e Owners of th e Bo nd s sh a ll present s uch Bo nds fo r exchange at th e Pri nc ipal
Co rpo rate T ru st O ffi ce of th e T ru s tee, w ith o ut cost to s uc h Owne rs.
Section 7.04 Amendment by Mutual C onsent. The provis ions of thi s Artic le V II s ha ll no t
prevent any Owner from acceptin g a ny amendme nt as to t he part icular B o nd held by s uc h Owner,
pro vided th at due n o ta tion th e reof is made o n s u c h Bond a nd, prov id e d f urt he r t hat w ri tten con sent to
s uch amendm e n t s hall first be o bta in e d fro m a n y In s ure r.
Sectio n 7.05 Opinion of Cou nsel . Pri o r to execu tin g a ny S upplem e ntal In denture, t he
Trus tee s hall be f urni s hed a n o pinio n o f counsel, upo n w hi c h it m ay conc lu s ively rel y to the effect that
a ll con d iti o n s preced e nt to the executi o n of s uch Supplemental Indenture u nd e r thi s Indenture ha ve
been sa ti sfied a nd s u c h Supplemen ta l Inde nture is a uth o ri zed a nd p e rmi tte d under th is Indenture a nd
does no t adversely affe ct th e exclu s io n of inte re s t o n the 2 016 Bo nd s fro m gross in com e for fe d e ra l
income tax p urposes o r ad ve rse ly affect the e xempt io n o f inte rest o n th e Bonds fro m person a l income
taxati o n b y th e Sta te .
Section 7.06 Copy of Supple mental Indenture to S&P and Moody's. T he uccessor
Agen cy s ha ll p rovide to S&P and Mood y 's, for so lo ng as S&P and M oody's, a s the case may be,
maintain a rating o n a ny of th e Bonds (with o ut regard to any muni cipal bond o r fin anc ial g ua ranty
in s uran ce), a copy of any Supp le menta l In denture a t least fifteen ( 15) days prior to it s proposed
e ffectiv e d ate.
ARTICLE VIII
EVENTS OF DEFAULT AND REMEDIES OF OWNERS
Section 8.01 Events of Default and Acceleration of Matur·ities . The fo ll owin g events
shall co n stitute Events of Defau lt here under:
(a ) if default s ha ll be mad e by th e Successor Agen cy in the due and punctua l
payment o f the pri n c ipal of o r int erest o r redemptio n pre mium (if any) o n any B o nd when and as the
same sh a ll become due and payable, w h e th e r at m aturity a s there in expressed , by declaration o r
o therwi se;
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(b) if default sha ll be mad e by th e S uccesso r Agency in t he obse rva nce of a ny of
the cove na nt s, a greements or co nditi o ns o n its part in thi s Ind e nture o r in th e Bond s co ntain ed , ot her
th a n a default desc ribed in th e preceding c lau se (a), a nd such defa ul t sha ll have co ntinued for a pe ri od
of thirty (30) days fo ll owin g receipt by the Successo r Age nc y of written no tic e fr o m the Trustee o r
a ny In s ur e r o r wri tten noti ce fr o m a ny Ow ner (with a copy of sa id notic e de li ve re d t o t he Tru stee and
a ny In sure r) of the occu rren ce o f s uch defau lt , pr ov ided that if in th e reaso nable op in ion of t he
Successo r Age ncy the fa ilure sta ted in th e no tic e ca n be co rrected , but not w ithin such thi rty (3 0) day
pe ri od , such fa ilure wi ll not co nst it ut e a n event o f de fa ult if cor rect ive act io n is in sti tuted by t he
Succe sso r Age ncy (w ith th e pri or w ritten con se nt o f any In s ure r) w ith in s uc h thirty (3 0) da y pe ri od
a nd th e Successo r A ge ncy th e reafter di I ige ntly a nd in goo d faith c ures s uc h fa ilure in a rea so nab le
pe ri od of tim e as a ppro ved by a ny In s ur e r;
(c) If th e uccesso r Age ncy fil es a pe titi o n seekin g reo rga niza ti o n or a rrange me nt
under th e fede ral bankruptcy laws or any oth e r app li ca ble law of th e Un it ed Sta tes of America , or if a
co urt of co mp e te nt juri sdicti o n wi II a pprove a pe ti t ion by th e Successo r Age ncy see k ing reorgani zatio n
und e r th e federa l ba nkruptc y law s o r any oth e r appl ica bl e law of th e Unit ed States of Ameri ca, o r, if
und er th e provi s ions of a ny ot he r law fo r th e re i ie f or a id o f debto rs, any co urt of competent jurisdicti o n
w ill approve a pe titi o n by th e S uccesso r Agen cy, seekin g reorga ni zat ion unde r t he fed e ral bankru ptcy
laws o r a ny o ther applicabl e law o f th e Unit e d State s of Ame ri ca, or, if unde r the provi s io ns of a ny
other law for th e re lief o r aid of debto rs, a ny co urt of co mp ete nt juri sd ictio n w ill as sume custody o r
co ntro l of th e Successo r Agen cy o r of th e whol e or a ny s ub sta nti al pa rt of its pro pe rty; or
(d ) T he principal of a ny Parity O bli ga ti o n shal l be declared imm edi ate ly due a nd
payable und e r the term s of a Parity Debt In strum e nt.
In determi nin g wh e th e r a n Eve nt of De fa ult has occ urred und er (a) above, no effect shall be
giv e n to pay me nt s made und e r a ny municipa l bond in surance policy, financial gua ranty in surance
po li cy o r Q ua lifi ed Re se rv e Account C redit In s trum ent.
If a n Eve nt of Default has occurred und e r thi s ecti on a nd is co nti nuing, the Tru s tee, may , a nd ,
if requ es ted in writin g by th e Ow ne rs of a maj o rity in agg rega te pr in c ip al a mou nt of the Bond s t he n
Out sta ndin g th e T ru stee sha ll , (y) decla re th e prin c ipa l of th e Bo nd s, together with th e accrued interest
th e reo n, to be due an d payab le immediately, a nd up o n a ny s uch dec laratio n the same shal l become
immedi atel y due a nd payable. a nythin g in thi s Ind e nture o r in the Bonds to the contrar y
notw ith sta ndin g, a nd (z) s ubj ec t to the pro v isio ns of Sec ti o n 8.06 , exe rcise a ny o th e r remedies
ava il able to th e Tru stee and th e Bond ow ne rs in law o r a t eq ui ty.
Imm ed iate ly up on receivin g not ice o r ac tu a l kn ow ledge of the occ urrence of an Eve nt of
Default , the Trustee shall g ive no ti ce of suc h Event of Defa u lt to each In s ure r a nd to the Successo r
Agen cy by te le ph o ne promptl y confirmed in writin g. Suc h not ice s hall a lso state w hether the prin c ipa l
of the Bonds s ha ll have been dec lared to be o r have imm ed iately become due a nd payable. Wit h
res pect to any Eve nt of D efa ult desc rib ed in sub sec ti o ns (a) or (c) above th e Tr ustee sha ll , a nd w ith
res pec t to a ny Eve nt of Defa ult de sc rib ed in s ub secti on (b) above the T ru stee in it s so le di sc retion may ,
a lso give such noti ce to th e Owners by mail , w hi c h sha ll includ e th e sta tement th at int eres t o n the
Bond s sha ll cease to acc rue fr o m and after th e date, if a ny, o n whi c h th e Trustee sha ll have d ec la red
th e Bo nd s to beco me du e and payable pursuant to the preceding paragraph (b ut o nl y to the ex te nt th at
pr in cipa l and any acc ru ed , but unp aid, in terest o n the Bond s is actuall y paid o n s uch da te ).
38
Thi s provis ion , however, is s ubject to th e cond iti on th at if, at any t im e afte r th e principal o f t he
Bo nd s sha ll have been so dec la red due and payab le, a nd be fo re an y j udgment o r dec ree for the payment
of th e moneys due s ha ll have been obta in ed o r e ntered, th e Succe sso r Agency shall , w it h the writte n
co nsent of a maj o rity in agg re ga te pr in c ip a l a mount of the Own e rs of th e Bond s then Outstanding,
depos it with the Tru stee a s um suffi cie nt to pa y a ll prin c ip a l o n the Bonds matured prior to such
decla rat io n and a ll mat ured insta ll ments of int e re s t (if any) up o n a ll th e Bonds. w it h interest on such
ove rdu e in sta llments of prin c ip a l and interes t (to th e ex tent permitted by law), a nd th e reasonable fees
and expe nses of th e Tr ustee, (i ncludi ng t he a ll ocated costs a nd di s bursements of its in-house counsel
to th e ex tent suc h se rvice s a re not red und a nt w ith th ose prov ided by o ut s id e co un se l) a nd any and a ll
ot he r defau lt s known to th e T ru stee (o th e r t han in th e payme nt of prin c ip a l of a nd interest o n the Bonds
due a nd payable so le ly by reason of s uc h dec la rati on) s ha ll have been made good o r cured to t he
sati sfac ti on of th e Trustee o r provis ion d ee med by the Tru stee to be adequate sha ll have been made
th erefo r, th e n. a nd in every s uch case, the T ru stee sha ll promp t ly g ive wr itten not ice of the forego in g
to a ny In s ur er a nd th e Own e rs of a ll Bo nds th e n O ut sta nd ing , and w it h the prior wri tten app rova l of
th e Own e rs of at least a maj o ri ty in agg rega te pr inc ip a l amo unt of the Bonds th e n Outstanding , by
w ritte n noti ce to the S ucce sso r Age ncy a nd to the Tru stee, may , on be ha lf of the Owners of all of the
Bo nd s t he n Outstand in g, rescind and annu l s uc h declaration a nd it s conseq ue nces . However, no suc h
resc iss io n and annulment shall extend to or shall affect any s ub sequent defau lt or shal l 1mpa1r or
exha ust any ri g ht or power co nseq ue nt thereon.
Sec ti on 8.02 App li cation of F unds U pon Acce le r·ation . A ll amou nt s re ceived by the
T ru stee pursuant to a ny rig ht g ive n o r act io n take n by th e Trustee und e r the prov isio ns of t h is Indent ure
(in c lu d in g th e Tru stee's sha re o f any P ledged Ta x Reve nu es) a nd a ll sum s in the fund s a nd acco unt s
esta bli shed and he ld by th e Tru s tee he reunder up o n th e date of the dec larat ion of accele ration as
prov id ed in ection 8.0 I , and a ll sums th e reafter rece ived by th e Tru stee hereunder, s ha ll be app lied
by th e Trustee in the fo ll ow ing o rd e r upon prese ntation of the Bond s, a nd the sta mpin g thereon of the
pa yme nt if o nl y parti a ll y paid , or up on the s urre nde r t he reof if fully paid:
Firs t, to th e pay me nt of th e fees, costs a nd expe nses of th e Tru stee in dec la rin g s uch Eve nt of
Defa ult a nd in exerc is in g th e ri ght s and re med ies se t fo rth in th is A1tic le V II I, in c luding reaso nab le
co mp ensation to its age nts, attorney s (in c lud in g t he a ll ocated costs a nd disburse me nts of it s in-h o use
co un se l to th e ex te nt s uc h serv ices a re not red undant w ith tho se prov ided by o ut s id e co un se l) a nd
co un se l a nd any o ut s ta nd ing fees a nd ex pe nses of th e T rus tee; and
Second , to t he pa yment of th e who le a mount th en ow ing and un paid upon the 20 16 Bo nds a nd
Pa r ity Deb t fo r pr in c ip a l a nd int e rest, as app li cab le, w ith int erest o n the ove rdue princ ipa l, and
in sta ll me nt s of in terest at th e net effec tive rate then bo rn e by th e Out stand in g 2016 Bo nds or Pa rity
De bt (to th e ex tent that suc h int e re s t on ove rdu e in s tallm e nt s of prin cipal a nd inte rest sha ll have bee n
col lected), and in case s uch moneys sha ll be in suffi c ie nt to pay in fu ll the w hole amount so owin g a nd
unpaid up on the 20 16 Bo nd s and Pa r ity De bt , t hen to th e pay me nt of such pr in c ipal a nd in te re st w ithout
prefe re nce o r pri o rit y, ratab ly to th e agg rega te o f s uch principa l a nd in te rest.
Sec tion 8.03 Power· of Trus t ee to Co ntro l Proceed in gs. In th e event that th e Trustee, upo n
t he happenin g of a n Eve nt of Default, sha ll have taken a ny ac ti on, by judic ia l proce ed in gs o r ot herw ise,
pu rsua nt to it s d ut ies he re und er, whe th e r up o n its own disc retion o r upon the reque st of th e Owners of
a maj o rit y in princ ipa l a mo unt of the Bo nd s th e n Outstandin g, it sha ll have full power, in th e exe rc ise
of it s d iscre ti o n fo r the best interes ts of t he Owners of the Bonds, with respect to t he cont inuance,
di sco nti nuance. w ithdra wa l, compromise, settl e me nt o r other d isposa l of s uc h action; prov id ed,
however, th at the Trustee sha ll not, unle ss there no lo nge r co ntinu es an Eve nt of De fa ul t, discontinue,
39
withdraw , com prom ise or se ttle, o r otherw ise di spose of a ny li ti ga ti o n pending at la w or in equ ity, if
at th e t ime there has been fi led with it a wr itten request s igned by the Owners of a maj o ri ty in prin cipa l
amo unt o f th e Outstand in g Bo nd s he re und e r oppos in g s uch di scontinu ance, w ithdrawal , compromise,
sett lement or other disposa l of s uch I iti ga ti o n.
Section 8 .04 L im ita t ion on Ow ne r 's Ri g h t to S ue. No Own e r o f a ny Bond iss ued
hereund er sha ll have the ri ght to in stitute an y su it, acti o n o r proceedin g at law or in equi ty, fo r any
re med y und er o r upon th is Indenture, un less (a) s uc h Owner shall have previo us ly g iv e n to the
Successo r Age ncy , the Trustee and any In surer writte n not ice of the occu rrence of an Eve nt of Defau lt ;
(b) the Own e rs of a majority in aggrega te principal amo unt of a ll the Bonds th e n Outsta ndin g shall
hav e made written requ est up on th e Tru stee to exerc ise th e powe rs here inb e fore granted or to in st itu te
s uch acti o n, su it or proceedin g in it s ow n name ; (c) sa id Owners s hall have tende red to the T ru stee
ind e mnit y reaso na bl y acceptab le to th e Tru stee aga in st th e costs, ex pe nses an d liabil iti es to be in c urred
in co mpli ance with s uch requ est; and (d) th e Tru stee s hall hav e refu sed or om itte d to comply w ith such
req uest for a per iod of s ixty (60) days a ft e r s uc h writt e n requ est s hall ha ve bee n received by. and sa id
te nd e r o f ind e mnit y shall have be e n made to, th e T ru stee.
Suc h no tifi ca tion, re qu est, tender o f indemnit y and re fusal or o mi ssion are he re by dec lared, in
every case, to be condition s precedent to th e exerc ise by a ny Owner of any remedy hereunder: it being
understo od and intended th at no one o r mo re Owners shall have an y ri ght in a ny mann e r w hate ver by
hi s or their actio n to enforce a ny ri g ht under th is Ind e nture, except in the ma nner he re in prov ided , a nd
that a ll proceed ings a t law o r in equ it y to e nfo rc e any provis ion of t h is Ind e nture sha ll be in stituted ,
had and ma intai ned in the m ann er he re in pr ov ided a nd for th e equal benefi t o f all Owne rs of t he
Outs tandin g Bo nd s .
The ri ght o f any Owner of a ny Bo nd to rece ive pay ment of th e princ ipa l of (a nd prem ium , if
a ny) and int e res t on s uc h Bond as he rein provided , s ha ll not be imp aired or a ffected without th e w ritte n
co nse nt o f s uch Owner, notwi th standing th e forego in g prov is io ns o f thi s Section or any o th er prov ision
o fth is Indenture.
Section 8.05 No n-Waiver. Not hin g in thi s Art ic le YilT o r in any other provision of thi s
Ind e nture o r in the Bond s, shall a ffect or imp a ir th e ob li gat ion of th e Successo r Agency, wh ich is
abso lute and un co ndit iona l, to pay fr o m th e Pledged Tax Re venues and ot he r amounts p ledge d
here un der, the principa l of and inte rest and redempti on pre mium (if a ny) o n th e Bo nd s to the respect ive
Owners o n th e re spec tiv e Int e res t Pa y me nt Date s, as here in provided , o r affect o r im pair th e ri ght of
action , whi c h is a lso a bso lut e and un co ndit io na l, o f th e O wne rs or th e Tru s tee to in s titu te sui t to enfo rc e
suc h paymen t by vir tue of th e contract e mb od ied in th e Bo nds .
A wa ive r of any defau lt by any Own e r or th e T ru stee s hall not affect a ny sub sequ e nt defa ult or
impair any ri g ht s o r remedies on the sub sequent default. No de lay or o mi ss ion of a ny Owner to
exe rci se a ny ri ght or powe r accru in g up on an y de fau lt s hall imp a ir any s uc h ri ght o r powe r o r shall be
co nstru ed to be a wa iver of any suc h de fau lt o r a n acquiesce nce therein , and every powe r a nd rem edy
co nferred up o n the Own ers a nd th e Trustee by th e Law o r by thi s Artic le V III may be e nfo rce d a nd
exe rci sed from tim e to tim e and as o ft e n as sha ll be dee med expedi ent by th e Owners an d th e Trustee .
If a s uit , action or proceedin g to e nforce any ri g ht or exercise any remedy sha ll be aba ndoned
or dete rmin e d adverse ly to the O wne rs or the Tru stee, th e Successor Age nc y, th e Trustee and th e
Owners s ha ll be restored to th e ir fo rmer pos iti ons, ri ghts a nd remedie s as if s uch s uit , actio n o r
proceedin g had not been brou ght or take n.
40
Section 8.06 Actions by Trustee as Attorney-in-Fact. A ny s uit, actio n or proceedi ng
which a ny Owner shall have th e ri ght to bring to enfo rce a ny ri ght o r remedy he reu nd er ma y be broug ht
by the Tru stee for the equal be nefit and protec ti o n of a ll Owners s imilarl y si tu a ted and t he Trustee is
he reby appointed (a nd th e s ucce ss ive respective Owne rs by ta ki ng and ho ldin g th e Bonds sha ll be
co nc lus ive ly deemed so to have appoi nt ed it ) th e tru e and lawful attorney -in-fac t of the respective
Owners for th e purpo se of brin g in g any s uc h s ui t, ac ti o n o r proceedin g and to do a nd perform any and
a ll acts and thin gs for a nd on be ha lf of the respective Owne rs as a c lass or c lasses, as may be ne cessa ry
o r a dvi sa ble in th e o pinion of th e Tru stee as suc h attorney-in-fac t , prov ided, howeve r, t he Trustee sha ll
have no duty or ob li ga tion to exerc ise any such ri g ht o r remedy un less it ha s bee n indem nified to it s
sa ti sfacti o n fr om any loss, li ab ilit y or expe nse (in c ludin g fees and expenses of it s o ut s ide counse l a nd
th e a ll ocated costs a nd di sbursements of its in-h o use co un se l to th e exte nt suc h services a re not
red un dant w ith those prov ided by outs ide co un se l).
Sectio n 8.07 Remedie Not Excl usi ve. No re medy here in confe rred up o n or reserved to the
Owners is inte nd e d to be exc lu sive o f any oth er remedy. Eve ry s uc h remedy sha ll be cumu lative and
sha ll be in add iti on t o e ve ry ot he r remedy g ive n he re und e r o r now o r herea fte r ex ist in g , at law or in
equit y o r by stat ute or o th er wise, and may be exercised w ith o ut exhausting and wit ho ut regard to any
o th er remedy conferre d by th e Law o r any ot he r la w.
Section 8.08 D e ter·mination of Perce ntage of Bondowne r . Whenever in this Ind ent ure
the con se nt , d irectio n or oth er act ion is req uired or per mitted to be g ive n or taken by a percentage of
th e Owners of an aggregate principal amount of Out sta ndin g Bo nds (inc ludin g by t he Owne rs of a
maj o rity in aggregate prin c ip a l am o unt of the Out stand in g Bonds), s uch percentage s ha ll be ca lculated
o n th e ba s is o f th e p rincipa l amoun t of th e Out standin g Bonds determined as of the nex t s ucceed ing
Jnt e re st Paym e nt Date.
ARTICLE IX
MISCELLANEOUS
Section 9.01 Special Obligations. T he Bo nd s are specia l ob ligations of th e Successo r
Age ncy secured by a pledge and li e n as de sc rib ed in Section 4.01 here of. The Bo nd s are not deb ts,
li ab iliti es or ob li gat io ns of the C it y o f Temp le City. the Sta te of Ca lifornia , o r any of its po liti ca l
s ubdivi s ions, and neither sa id C ity, sa id State , no r a ny of it s po liti ca l s ubdi vis ions is liable thereon , nor
in any event shall th e Bond s be payab le o ut of any funds or properti es othe r t han tho se pledged by th e
Successo r Age ncy. The Bo nd s do not co nstitute an ind ebted ness in contraventio n of a ny co ns titutional
or statuto ry debt limi tation o r restri ct io n.
Section 9.02 Benefits Limited to Parties. othing in thi s lnd e nture, exp ressed o r implied,
is intended to g ive to a ny person other than th e Successo r Agency, each In s urer, the Trustee and the
Owners, any ri g ht , remedy or claim under o r by rea so n o f thi s ln denture . Any cove nants, st ipu latio ns,
pr omi ses o r agree me nt s in th is Ind en tu re contain ed by and on be ha lf of t he Successo r Agency sha ll be
for th e so le and exc lu s ive bene fit o f the T ru s tee, suc h ln s ur e rs a nd the Owne rs. To the extent t hat t hi s
Indenture confe rs upon or g ives a ny Insurer any r ight, re me dy or cla im unde r or by rea son of th is
Indenture, each Jn s ure r is he reby expl ic itl y recogni zed as be in g third-p art y benefic ia ri es here und e r an d
ma y e nforce any s uc h ri ght re medy o r cl a im conferred , give n or gra nt ed here under.
Section 9.03 Successor is Deemed Included in A ll References to Predecessor. Wheneve r
in this Jnd enture o r a ny Suppl ementa l Jnd enture e ith e r the S uccessor Agency or the Trustee is named
41
o r refer red to, suc h re fe re nce s ha ll be deeme d to inc lud e t he succe ssors o r ass ign s th e reof, a nd a ll the
cove na nt s a nd ag ree ments in thi s In de nture co nta in ed by o r o n be ha lf o f t he Succe ss or Age ncy or the
Tru stee sha ll bind a nd inu re to t he be nefit of t he respec t ive succ esso rs a nd ass igns th e reof w he th e r so
ex pre ssed o r no t.
Sectio n 9.04 Di scha r ge of Inde nture.
(a) If th e Su ccesso r Age ncy s hal l pay a nd d isc ha rge th e e nt ire ind eb tedn ess on a ll
Bo nd s o r any po rti o n th e reo f in a ny one o r more of th e fo ll owi ng ways:
(i) by we ll a nd trul y pay in g or c a us in g to be pa id th e pr incipal o f a nd
in te rest a nd pre m iu m (if a ny) on a ll o r t he appli cab le po rt io n of Ou ts tand ing Bon ds, as and w he n t he
sa me beco me du e a nd payabl e;
(ii ) by ir revoca bl y depos itin g with th e Tr us tee or a n escrow age nt, in trus t,
at o r befo re ma tur ity, mo ney whi c h, toge the r w ith th e ava il abl e a mo un ts th e n on deposi t in the fu nd s
a nd a ccount s estab l ished purs ua nt to t hi s In de nture, is fu ll y s uffi c ie nt to pay a ll or the a ppl ica b le
porti o n of Outsta nd in g Bo nd s, includin g a ll pri nc ipa l. int e rest a nd redempt ion pre m ium s, or;
(ii i) by ir revoca bl y de pos itin g w ith t he Trustee o r an escrow age nt, in tru st,
Defea sance O bli ga t io ns in suc h a mo un t as an Ind e pe nde nt Accountan t s ha ll dete rmin e w il l, toge th e r
w ith the inte rest to acc ru e the reo n a nd ava il a ble mo neys th en o n depos it in th e fund s a nd acco un ts
es ta bli shed pu rs ua nt to thi s Jn de nture, be full y s uffici e nt to pa y and d isc ha rge the in debtedn ess on a ll
Bo nd s o r th e app licab le po rt ion t he reo f (in c lu d in g a ll pri nc ipa l, interes t a nd rede mpti on pre mium s) a t
o r be fore ma tur ity;
a nd, if s uc h Bond s a re to be re dee med pri or t o t he ma turi ty th e reo f, notice of s uch rede mpti on sha ll
ha ve bee n g ive n pursua nt to Section 2.03(c) o r prov is io n sa t isfac tory to t he T rustee sha ll have bee n
made fo r the g iv ing of suc h noti ce, th e n, a t the e lec ti o n o f the Successor Age ncy, a nd notwith sta ndi ng
that any Bo nds sha ll not ha ve been s urr e nd e red for pay me nt, th e p le dge of th e Pl edged Tax Reve nue s
and othe r a mo unt s, fund s a nd acco unts des cri bed in ec ti o n 4 .0 I he reo f a nd a ll oth e r obli ga ti o ns of
the Tru s tee a nd th e Successo r Age ncy und e r thi s Inde nture sha ll cease and ter m inate with respect to
a ll Outsta nd in g Bo nd s or , if a pp licab le, w ith res pec t to th at po rt io n ofthe Bonds w hic h has bee n pai d
a nd d isc harged, exce pt o nl y (A) th e co ve na nt s of th e Successo r Age ncy he re und er w it h res pec t to t he
Co de , (B ) t he o bi iga ti o n o f th e Tr ustee to t ran sfe r a nd exc ha nge Bond s he re und e r, (C) t he o b i iga ti o ns
of t he S ucc esso r Age ncy un de r Sec ti o n 6.06 her eo f, a nd (D) th e o bli ga t io n of t he Succ essor Age ncy to
pa y o r ca use to be pa id to th e Ow ne rs (o r a ny In sure r), from th e a mounts so depos ited with th e T rustee ,
a ll sum s du e the reo n a nd to pay the T ru stee and an y Ins ure r a ll fees, ex pe nses a nd costs of th e T ru stee
and a ny Ins ur er. In t he eve nt the uccesso r A ge ncy sha ll , pursuant to th e fo rego ing prov is ion, pay a nd
di sc ha rge a ny port io n or a ll o f th e Bo nd s t he n Outsta nd in g, the Tru stee sha ll be a uth ori zed to ta ke s uch
acti on s a nd exec ute a nd deli ve r t o th e S uccesso r Age ncy all s uch in strum ents as ma y be necessa ry or
de s irab le to ev ide nce s uch d isch arge, in c ludin g, w ith out li mita ti on, se lecti o n by lo t of Bond s of a ny
ma tu rity of t he Bo nd s tha t th e Succe sso r Age ncy has de te rmin ed to pay a nd di scha rge in pa rt.
In t he ca se of a defeasa nce o r pa yme nt of al l of the Bo nd s Outstandin g, a ny fund s
the reafter he ld by the Tru stee which are not req uir ed fo r sa id pu rp ose o r fo r pay ment of a mou nt s du e
th e T rustee pursuant to Secti on 6 .06 sha ll be paid ove r to the Successo r Age ncy.
42
No tw ith standin g anyt hin g here in to th e co ntrary, to acco mplis h the defea sa nce of
In s ured B ond s, at leas t thre e Bu s in e ss Days pr ior to a ny de fea sance , the Succe ssor Age ncy s ha ll de li ve r
to an y Ins urer o f s uc h In sure d Bond s dra ft co pi es o f a n e scrow ag reemen t, a nd op ini on o f Bo nd
Co un s e l rega rdi ng th e va lidi ty and e nfo rce ability of th e escrow a g reem e nt a nd the defeasan ce of s uc h
Insured Bonds, and a ve rifi cat ion repo rt (a "Ve r ifi ca ti o n Repo rt ") pre pa red by a natio na ll y recogni zed
indepe nd e nt fina nc ia l a na lyst o r fi rm of certifi e d pub I ic acco un tan ts re ga rdin g the s uffic ie ncy o f th e
escrow fu nd. uc h opini o n and Ver ifica ti o n Rep o rt sha ll be addressed to s uc h Ins ure r and s hal l be in
fo rm and sub sta nce sati sfac tory to s uch l nsure r. In a ddi t ion, t he e sc row agree me nt sha ll pro v ide t hat:
a) a ny sub st it uti o n of securiti e s sha ll req uire th e de li ve ry o f a ve rifi c a ti o n report , a n opini o n o f Bo nd
Co un se l th at such s ub st ituti o n w ill no t adve rse ly affec t the exc lus io n (if inte re s t on th e Insured Bonds
is exc lu dab le) fr o m gr os s inc o me o f th e ho ld e rs of the In sured Bo nds of th e intere st o n th e Ins ured
Bo nds fo r fed e ra l inco me ta x purposes a nd the pri o r writte n c onsent of s uc h In sure r; an d b) t he
Suc cesso r Age nc y s ha ll not ame nd th e esc row a g reem e nt o r e nt e r into a fo rw a rd purch ase agree me nt
o r oth e r agree me nt w ith respec t to r ig ht s in th e esc row w it hout th e pri or writt e n co nsent o f s uch In sure r.
(b ) No tw ith sta nd in g a nythin g he re in to t he c ontra ry, in t he e ve nt t hat the prin c ipa l
a nd/o r int erest du e o f th e Bo nds is pa id by a ny In s ur e r, s uc h Bo nds s ha l l re main Outsta nd in g fo r a ll
purp oses, not be defea sed or o ther w ise sati sfi ed a nd no t be co ns ide red pa id by the Suc cesso r Age nc y,
a nd th e a ss ignm e nt a nd pl ed ge o f th e P led ged Tax Re ve nu es and oth e r a ss et s here und e r a nd a ll
covena nt s, ag reeme nt s and o th er ob ligat ions o f th e S uccesso r Age ncy to th e Bo ndown ers so pa id s ha ll
co nt inu e to ex ist a nd shall run to th e be nefit of suc h Insure r, a nd s uch In sure r sha ll be subr og ated to
th e ri g ht s of s uc h B o ndo w ne rs, as app lica bl e.
Sectio n 9.05 Execution of Docum ents and Proof of Owne r s hip by Owners. A ny re q ues t,
consen t, dec la ra ti o n o r oth er in st rum e nt w hi ch thi s Ind e nt ure may req u ire o r pe rm it to be e xec uted by
a ny O wner may be in one or more in st rum e nt s o f s imi lar teno r, and s hal l be ex ecuted by s uc h Own e r
in pe rso n o r by s uc h Owne r's a tt o rn eys a pp o inte d in w r iti ng.
Exc e pt as oth e rwi se here in ex press ly pr ov id ed , th e fac t a nd da te of the e xec ut ion by a ny Owne r
o r hi s a tto rn ey of s uc h re qu est , dec larat io n o r oth e r in strum e nt , o r of s uc h w ritin g app o intin g s uc h
a tto rn ey , may be p roved by th e ce1t ifi cate o f a ny nota ry pub lic o r o ther o ffice r aut ho ri zed to ta ke
acknow ledg ment s of dee ds to be re corded in th e sta te in w hi c h he purp orts to act , th at t he pe rso n
s ignin g s uc h requ est, dec la ra t io n o r o th e r in st ru me nt or wr itin g ac know led ged to h im th e executi o n
the reo f, o r by an a ffid av it of a w it ness o f s uc h executi o n, d uly swo rn to be fo re s uc h nota ry pub lic or
oth e r office r.
The o wne rship of Bo nd s and th e amo unt, maturit y, numb e r and da te o f o wners hip the reof s ha ll
be proved by th e Reg istrat io n Boo ks .
A ny dema nd, re qu e st , d ire ct ion, co nse nt , dec la ra ti o n o r oth er in str ume nt or w r itin g o f t he
O wner o f a ny Bo nd shall bin d al l fu tu re Owners o f s uch Bond in respect o f a nyt hing done o r suffered
to be do ne by th e S ucc esso r Age ncy o r th e Tru s tee a nd in accordan ce there w it h, pr ovid ed, however,
th at th e Tru s tee s ha ll no t be dee med to have kn ow ledge th at a ny Bo nd is o wned by or for the acc o unt
of th e Succe ss or Age ncy unle ss th e Suc cesso r Age ncy is th e reg iste red Owne r o r t he Tru stee ha s
rece ived writt e n noti ce th at a ny o th e r regi ste red Ow ner is suc h an affili a te.
Section 9.06 Disqualified Bonds. In de termin ing w hethe r the Ow ne rs of th e req u iSite
aggre gate p ri nci pa l a mount of Bo nds have c onc urred in a ny dema nd, requ est , d irect io n, c onse nt or
wa iver un de r th is Ind e ntur e, Bo nd s whi c h are ow ned or he ld by o r fo r t he accou nt of th e Successo r
43
Agency or the City (b ut excludin g Bo nd s he ld in an y e mpl oyees' retirem ent fund) s hall be di s rega rded
a nd deemed not to be Outs tanding fo r the purp ose of any s uc h determin ation. Upon request of the
Tru s tee, the Successo r Agency and the C ity sha ll s pec ify in a certifi ca te to the Trustee th ose Bo nd s
di sq ualified pur suant to th is Secti o n and th e Tru stee ma y co nc lus ivel y rely o n s uch certi fi cate.
Section 9.0 7 Waiver of Persona l Liability. o member, offi cer, age nt o r emp loyee of th e
Successo r Agency shal l be in d ividuall y or pe rso na ll y li a bl e fo r th e payment of the princ ip al or int erest
o r any prem ium on the Bond s; but nothing here in co ntained shall re lieve any s uc h me mb er, officer,
age nt o r e mp loyee from th e pe rfo rman ce of a ny offic ia l d ut y pr ov id ed by law.
Section 9.08 Dest.-uctio u of Cancell ed Bond s. Wh eneve r in t hi s ln dentu re pr ovis ion is
made for th e surre nd e r to th e T ru stee of a ny Bond s wh ic h ha ve bee n pa id o r cance ll ed pursuant to th e
pro vi s io ns of th is Indenture , th e Tru stee s ha ll destroy s uc h bo nd s and upo n request of the Successor
Age ncy prov ide the Succe sso r Agency a c e rtific ate o f de structi on. Th e Successor Agency sha ll be
e nt itl ed to re ly up o n any statem e nt of fac t co nta in ed in a ny cert ifi ca te wit h respect to th e de struct io n
of a ny s uch Bo nd s therein re ferr ed to .
Sectio n 9.09 Not ices. Any not ice, req uest, demand, commun icatio n or o th er paper s ha ll be
s uffic iently g ive n a nd s ha ll be deemed g iven w he n de li ve re d o r upon rece ipt whe n mail ed by fi rst c lass,
registered or ce rtifi e d mai l, pos tage prepa id , or se nt by fa cs im il e, addressed as fo ll ows:
If to th e S ucce ssor Agency:
If to th e T ru stee:
S uccesso r Agency to t he Temple City Com munity
Red evelop me nt Age nc y
970 I La s Tu na s Dr.
Templ e C it y, CA 9 1780
Attention: Fina nce D irecto r
The Ba nk ofNew Yo rk Me ll o n Tru st Compa ny, N.A.
Attent io n: Co rp orate T ru st Depa rtm e nt
T he Successo r Age ncy and the Tru stee may de s ig na te any furt he r or differ ent addresses to
w hich sub sequent notice s, ce rtifi cate s or o th er co mmuni ca ti ons s hall be se nt.
Secti on 9 .10 Par tia l Inva li d ity. If any Sect io n, paragra ph , se nte nce, c la use o r p hrase o f thi s
Indenture shall for a ny re aso n be held ille ga l, inva lid o r un e nforcea bl e, s uc h ho ldin g sha ll not affec t
th e va lidi ty of th e re ma inin g po rti o ns of thi s Ind e nture . Th e Succes so r Age ncy he reby decla res th at it
wou ld have a dopt ed th is In denture and each a nd every oth e r Secti on. paragraph , se nt ence, c la use or
phra se hereof a nd a uth orized th e iss ue of the Bond s purs uant th e reto ir respective of the fact t hat a ny
o ne o r mo re Sections, paragraph s, sentence s, c lau ses, o r phrases of thi s Ind e nture may be he ld ill egal,
in va lid or un e nfo rceab le. If, by reason ofthejud g me nt o f a ny court, th e Tru st ee is rend ered un a bl e to
perfo rm it s duti es he re und e r, a ll suc h duti es a nd a ll o f th e ri ghts and powers of t he Tru stee he reun der
sha ll, pe ndin g appoi ntm ent of a successo r Tru s tee in accorda nce with t he prov is ions of Sectio n 6.0 I
he reof, be ass um ed by and vest in th e Treas ure r of th e Successor Agency in tru s t fo r th e be nefit of th e
Own e rs. The Successor Age ncy covena nt s for th e direc t be nefit of th e Owners that its Treas urer in
s uc h ca se sha ll be vested with a ll of th e ri g hts and powe rs of the Tru stee hereund e r, a nd shal l ass ume
a ll of th e respons ibi litie s a nd pe rform al l of th e dutie s of the Tru s tee he re un de r, in tru st fo r the benefit
44
o f the Bo nds, pen din g appo intm e nt of a successor T ru stee in acco rdance wit h th e provisions of
Sec ti o n 6.0 I hereo f.
Secti o n 9.11 U nclai med Moneys. A nyt hin g co nta in ed he re in to the co nt rary
not w it hs ta nd in g, a ny mo ney he ld by th e Tr us tee in trus t fo r the p ay me nt and disc ha rge of the int e rest
o r pre mium (if any) o n o r pr in c ipa l o f the Bo nds w hi c h re ma in s un c la imed fo r t wo (2) yea rs after th e
dat e w he n th e pay me nts of s uc h int e rest, pr emium a nd princ ipa l have become paya bl e, if suc h mo ney
was he ld by th e T ru stee at such da te, o r for two (2) yea rs a ft e r the da te of de pos it of s uch money if
de pos ite d w ith th e Trus tee after t he da te w he n the int e res t a nd pr e m iu m (if a ny) o n and pr inc ipal of
s uc h Bo nds have be co me paya bl e, sha ll be re pa id by the Tr us tee to the Successo r Age ncy as it s
a bso lut e pro pe rty free fr o m tru st , a nd t he Tru stee sha ll th e re upo n be release d a nd d isc ha rged w ith
res pec t th e reto a nd th e Bond owners s ha ll loo k o nl y to th e Successo r Age ncy fo r the payment of th e
pri nc ipa l of a nd inte res t a nd re dempt io n pre mium (if a ny) o n o f suc h Bonds.
Sec tio n 9.1 2 E xec uti o n in Co unte rpa rts . T h is Ind ent ur e may be executed in seve ra l
co unte rp atts, each of whi c h sha ll be a n orig ina l a nd a ll of whi c h s ha ll const itute but one and the same
instr ume nt.
Secti o n 9 .13 Governin g Law. Thi s Ind e ntu re sha ll be const rue d a nd governed tn
acco rd a nce w ith the law s of th e State.
45
IN WITNESS WHEREOF, th e SUCCESSOR AGENCY TO TH E TEMPLE C ITY
COMMUN ITY REDEVELOPMENT AGENCY ha s ca used thi s Ind enture to be s igned in it s name by
it s Cha irman , a nd THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., in token of its
acceptanc e of th e trusts created he re und e r, ha s caused t hi s Indenture to be s igned in its corpo rate name
by its office r thereunto dul y a uth o ri zed , a ll as of th e day a nd yea r firs t above writte n .
ATTEST:
Secretary
SUCCESSOR AGENCY TO T H E TEMPLE C ITY
COMMUN ITY RE D EV ELOPMENT AGENCY
By:
C hairman
THE BANK OF NEW YORK M ELLON TRUST
COMPANY, N.A., as Tru stee
B y :
Autho ri zed Officer
S-1
[TO BE CONFORMED]
EXHIBI T A
(FORM OF 20 16 BOND)
UNITED STATES OF AMERICA
STATE OF CALIFORNIA
S UCCESSOR AGENCY TO THE
TEMPLE CITY COMMUNITY REDEVELOPMENT AGENCY
TAX ALLOCATION REFUNDING BONDS, SERIES 20 16
INTER EST RATE: MAT UR ITY DAT E: DATE D DA TE:
Se pt emb e r I , __ _
REGIS TERED OWNER: CEDE&CO.
PRINC IPAL SU M: DOLLARS
CUS IP:
Th e SUCCESSOR AG ENC Y TO THE T E MPL E C ITY COMM UN ITY RED EVELO PM EN T
AG ENC Y, a public ent ity dul y ex istin g under and by v irtu e of th e laws of th e Sta te of Cal ifo rni a (th e
"Succe sso r Age ncy"), for valu e rec ei ved hereby pr omi ses to pay to th e Registe red Ow ne r s tated above,
o r regi ste red ass ig ns (the "Reg istered O wner"), o n th e Ma turity Dat e sta ted above (s u bj ect to any ri ght
o f prior re de mpti o n he reinaft er prov id ed fo r, if a ny), th e Prin c ip a l Sum stated above and t o pay inte rest
thereon fr o m th e Interes t Pay me nt Date (a s he re in aft e r de fi ned) nex.t prec edin g th e date of
authent ica ti o n of th is 20 16 Bo nd , un less (i) thi s 2 01 6 Bond is auth enti cated aft e r t he c lose of bu s in ess
on th e fift ee nth (15th) ca le nd ar day of the mo nth preced in g s uch Inte res t Payment Date , w he th e r o r
not s uc h fi ftee nth (15th) ca le nd a r day is a Bu in ess D ay (th e "Record Date") a nd o n or before th e
fo llo w in g Int e rest Pay me nt Da te, in whi c h e ve nt it s ha ll bea r inte rest from suc h In te rest Pay me nt Da te,
or (ii) thi s 2 01 6 Bo nd is auth e nti ca ted o n o r befo re A ugust 15,201 6, in whi ch event it sha ll bea r inte rest
from th e Date d Da te above; prov ided however , th a t if a t th e tim e of a uth enticati o n of thi s 20 16 Bo nd ,
intere st is in d efa ult on thi s 201 6 Bond , this 20 16 Bo nd shal l bear int erest fro m t he Inte rest Pay me nt
Date to which inte rest ha s pre vi o us ly been pa id o r made a va il ab le for pay me nt o n thi s 2016 Bond , until
pa yment of s uch Principal S um in full , at th e Inte rest Rate pe r annum stated a bove. paya bl e
sem iannu a ll y on Marc h 1 a nd Sept emb e r I in eac h ye a r, co mmen c in g Septe mb e r I , 20 16 (eac h a n
"Int e rest Pa y me nt Date"), ca lcul a ted o n the ba s is o f 360-d ay year co mpr ise d o f twelve 30-day month s.
Prin c ipal he reof a nd prem ium , if a ny, up o n red e mpti o n he reo f, if a ny, a re paya ble in lawful mo ney of
th e United ta tes of Am e r ic a up on prese ntat ion and s urre nder of thi s 201 6 Bond at th e cor porate tru st
office (th e ''Pr inc ipa l Corporate Tru s t Office ") o f Th e Bank of Ne w Yo rk Mell on Tru st Co mp a ny ,
N.A., in Los An gel es, Ca lifo rnia , as tru s tee (the "Tru stee"). Interest he reo n (includin g th e fin a l inte re st
paym e nt up on maturity or red empti o n) is pay a ble w he n du e by ch eck or dra ft of the Tru s tee ma il ed on
the Int e res t Payment Date to th e Registered Owner he reo f at the Registe red Own er 's ad dress as it
appears on th e Registr a t io n Boo ks ma intained by th e T ru s te e at the c lose of bus ine ss o n th e pr ece din g
Record Date; prov ided howe ver, that a t t he writt e n re que st of a ny Registe red O wner of at leas t
$1,000,00 0 agg regate p r incipal a mo unt of th e 2 01 6 Bond s (a s defin ed be low), which wr itt en requ est
A-I
is on fil e w ith the Trustee o n any Reco rd Date , in teres t he reo n sha ll be pa id by w ire to such account in
the U nited States as is s pecifi ed in s uc h w ritten requ es t.
Th is 20 16 Bond is one of a du ly a uth o ri zed issue ofbonds of the uccessor Age ncy designated
as "Successor Agency to th e Temple C it y Co mmunit y Redeve lopment Agency Tax All ocat ion Bon ds,
20 16" (the "20 16 Bonds"), of a n aggrega te prin cipa l a mo unt of$ , all of li ke te nor an d da te
(exce pt for such va riati o n, if any , as may be required to designa te varying serie s, numb ers, matu ri ties,
interest ra tes, or rede mpt io n, if a ny, a nd oth er prov is io ns) and all iss ued pu rsua nt to the prov is io ns of
A rt ic le II (co mm e nc in g w ith Secti o n 535 80 ) of Cha pter 3 of Part I of Div is io n 2 of T itl e 5 of t he
Gove rnm e nt Code of t he State (the "Refund in g Law"), the Dissoluti o n Act (as s uch term is defi ned in
the Inde ntu re), a nd t he Communi ty Redevelopment Law a nd Communit y Deve lo pment Comm ission
Law , constituting Pa rts J and 1.7 of Divis ion 24 of th e Ca lifo rni a He a lth and Safety Code (the '·Law"'),
a nd pu rs uant to a n Indenture of Trust, da ted as of Apri I I, 20 16, e nte red int o by and between the
Successor Agency and th e Tr us te e (t he "Ind ent ur e'"), prov iding for t he issuance of the 2016 Bonds.
The 20 J 6 Bond s a re be in g issue d in th e fo rm of reg iste red 2016 Bo nd s w ithout co upo ns.
Add itiona l Parity De bt may be iss ued o n a parity w ith th e 2 0 16 Bonds, but o nly s ubject to th e terms of
the Ind enture. Refe re nce is hereby made to the Ind e nture (copies of w hi c h are o n file a t the office of
the S uccesso r Age ncy) a nd all ind e ntures s upp leme nt a l th e re to and to th e Law for a description of the
term s on whi c h t he 20 16 B o nd s are iss ued, the provi s ions with re ga rd to the nature and exte nt of th e
P ledged Tax Revenu es (as that te rm is defin ed in th e Indenture ), and the r ights t here unde r of the
Registered Owners of th e 20 16 Bon ds a nd th e ri ght s, duties and immunities of th e Tru stee a nd th e
ri ghts a nd ob li ga t io ns of the S uccesso r Age ncy th e re under , to all of th e provis ions of w hi c h Inde nture
the Regi stered Owner of thi s 20 16 Bo nd , by acceptance hereof, assents and agrees. Cap ita li zed terms
not oth e rwi se defined he re in sha ll have the mea nin gs give n them in th e Indenture.
The 20 16 Bond s have been iss ued by th e Successo r Agency for the purpose of providing fu nd s
to refi nance certa in bo nd s w ith respec t t o th e Proj ec t Area (as s uc h term is de fined in th e Indentu re)
a nd to pay certa in expe nses o f the S uccesso r Agency in iss uin g the 20 16 Bon ds .
The 20 16 Bonds are spec ia l o bligat io ns of th e ucc essor Agency and thi s 2016 Bond a nd the
in te rest he reo n and on all o th e r 20 16 Bond s and th e interest thereon (to th e exte nt se t forth in the
In de nture), are sec ured by a s tat ut ory pledge of, and li e n on, Pl edged Tax Revenues deposited in the
Redevelopment Pro perty Tax Trust Fund he ld by th e Aud ito r-Controll er of the Cou nty ofLos A ngeles,
subj ect to the pay ment of th e Cou nt y's adm ini stra ti ve cha rges and certain a mo unts to tax ing e ntitie s
pursua nt to th e Diss o luti on Ac t, a nd a pled ge o f, sec urit y int ere st in and li e n o n th e Pled ged Tax
Reve nu es, as mo re fu ll y desc rib ed in the Ind e nture, on depo s it in the Redeve lop men t Obl iga ti o n
Retire me nt Fund, in cl udin g th e Spec ia l Fun d the rei n, a nd th e Debt Service Fu nd and any fu nd or
acco un t created under the Inde nture (othe r th an th e Rebate Fund ), a nd are payab le from Pl edged Tax
Revenue s remain in g aft er pa yme nt of certain am o unt s to certain taxing e ntitie s as provided in the
Di sso luti on Act a nd the In denture.
T he re has bee n created, and will be mainta in ed by, th e S uccesso r Agency the Specia l Fund (as
defin ed in th e Inde nt ure) in to wh ich Pl edge d Tax Revenu es dep os ited by th e Co unty of Los Angeles
Audito r-Co ntro ll e r in t he Rede ve lop me nt Ob ligat ion Retire ment Fun d sha ll be tran sfe rred and from
whi ch t he Successo r Agency sha ll tra ns fer am ount s to the Tru s te e for payme nt , when due, of the
pri nc ip al of a nd th e interes t and redem pti o n premium, if a ny, on th e 20 16 Bo nd s a nd a ny add iti o nal
Bo nd s (as defined in the In denture).
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[Th e 2 016 Bo nd s a re not subj ect to o pti o na l rede mpt ion pri o r to their state d maturities.)
I f a n Eve nt of Defa ul t, as defi ned in th e Ind enture , sha ll occur , the princ ipa l of a ll Bonds may
be decla red due and payable up o n th e co nditi o ns, in the ma nn e r and w ith t he effect provided in t he
Ind e nture, but suc h declarati o n a nd it s co nse qu e nces may be re sc inded and a nnu l led as fu rther provided
in the In de nture.
Th e 20 16 Bond s are issuab le as f ull y regis te red 20 16 Bo nd s w it ho ut co upo ns in denominations
of $5,000 a nd a ny integ ra l mul ti pl e thereof. Subj ect to the li mi ta ti o ns a nd co nd it io ns a nd up on
payme nt of th e c harges, if any, as pr ov ided in th e Ind e nture, 20 16 Bo nd s may be excha nged for a like
aggregate pr in c ip a l amo un t of 20 16 Bonds of o ther a uthor ized den o m in a ti o ns a nd of t he sa me se ri es,
ten or a nd matur ity.
Thi s 20 16 Bond is tran sfe rab le up o n th e Reg istra t io n Books, by th e perso n in whose name it is
registe red, in per so n or by a dul y au th orize d attorney of s uch perso n, up o n su rrender to t he T ru stee at
the Prin c ip a l Co rp o rate Trust Office for ca nce ll atio n. but o nl y in the manner and s ubject to the
limitati o ns prov id ed in th e Ind e nture. Upo n regi str ation of s uc h t ransfer a new fu lly reg istered 20 16
Bond o r 20 16 Bo nd s, o f a ny au th o rize d de no min at ion or de no min at io ns, fo r t he same aggrega te
princ ipa l amount a nd of th e sa me ser ies, tenor and matu rit y w ill be is sued to the tra ns feree in exchange
herefo r. The T ru s te e ma y re fu se to tran s fe r o r excha nge (a) any 20 L 6 Bond durin g t he fi ftee n (15)
days prior to th e date establi shed for the se lection o f 20 16 Bo nd s for redempt ion, if any, or (b) a ny
2 01 6 Bo nd se lected for redempt io n, if a ny .
The Successo r Age ncy a nd the Tru stee may trea t t he Registe red Own e r hereof as the absolute
ow ne r hereof for a II purp oses , and the Successor Age ncy a nd t he Tru stee sha II not be affec ted by any
no ti ce to th e co ntrary.
The r ig ht s a nd obli gat ions o f th e Successo r Agency a nd the Regi ste red Owners of th e 2016
Bo nd s may be mod ifi e d o r amended at a ny tim e in the ma nn e r, to th e exte nt a nd upon the terms
prov ided in the Indenture, but no s uc h mod ifi ca ti o n or ame ndm ent shall (a) ex te nd the maturity of or
redu ce the int e res t rate on any Bond or o th erw ise alter o r imp a ir the o bli ga ti o n of t he Successor Agency
to pay th e princ ip a l, interest or redemptio n pre m ium s (if a ny) at th e tim e and place and at the rate a nd
in t he c urre ncy prov id ed herei n of a ny Bond wi th o ut th e exp ress written conse nt of th e respec ti ve
In s urer an d the Registered Owne r of s uc h Bo nd , o r (b) red uce th e percenta ge of Bo nd s required for the
written conse nt to a ny s uch ame ndment o r mod ifi ca ti o n. Jn no even t sha ll a Supp le me ntal Inde nt ure
modify a ny of th e ri ght s o r ob li gat io ns o f t he Trustee w itho ut it s pri o r writ ten con se nt. ln no eve nt
s ha ll a ny Supp le me nta l Ind e nture mod ify any o f th e ri g hts o r o bli gat ions of any Iss ue r w ith o ut it s pr ior
wr itt en co nsent.
U nl ess thi s 20 16 Bo nd is presented by an aut ho ri zed representative of T he Depos it ory Tru st
Co mp a ny, a ew York co rp o rati on ("DT C"), to the Successo r Agency o r th e T ru stee for reg ist rat ion
of tra ns fe r, excha nge, or payment. a nd a ny 20 16 Bo nd issued is regi stered in the na me of Cede & Co.
or in suc h oth e r na me as is req uested by a n a uth o ri zed re prese ntat ive of DTC (and any pa yment is
made to Ce de & Co . o r to s uc h oth e r en tit y as is requ ested by an authori zed rep rese nt ative of DTC),
AN Y TRA SFER, PLEDG E, OR OT H ER USE H EREOF FO R VAL UE O R OTHER W I E BY OR
TO ANY PERSO IS WRO GFUL ina smu c h as th e Re g iste red Owner hereof, Cede & Co., has an
interest he re in .
A-3
Thi s 2016 Bond is not a deb t, li a bi li ty o r o bligation of th e City o f Redl ands , the State of
California , or any of it s po li tical subdivi s io ns, and ne ith e r said C ity , sa id State, nor any of it s politica l
s ubdivi s io ns is li able hereo n, no r in any event sha ll thi s 2016 Bond be payab le o ut o f any funds or
pro pe rti es o th e r than those pl edged by th e Successo r Agency. The 20 16 Bon ds do not co nstitute an
indebtedn ess in con traventi o n of any co nst ituti o na l o r sta tut o ry d ebt limitati on o r restricti on.
It is hereby certi fied t hat a ll o f th e thin gs, conditions and act s re quired to exi s t, to have
happened or to have bee n p erformed precedent to a nd in the iss uan ce ofthi s 20 16 Bond do ex ist, have
happe ned or have been perfo rmed in due a nd reg u la r t ime a nd mann er as requ ired by th e La w a nd th e
laws of the State of Ca li forn ia , and th a t th e amou nt of thi s 2016 Bond , t oge ther with a ll oth er
ind e btedn ess of the Successo r Agency, does not exceed any limi t pre sc ribed by th e La w o r any laws
of the State of Cal ifornia , and is not in excess o f th e amount of 2016 Bo nd s permitted to be iss ued
under the Indenture .
Thi s 20 16 Bond s hall not be e ntitl e d to an y be ne fit und e r th e Ind e nture o r becom e va lid o r
o bli gat o ry for a ny purpose until th e Tru stee's Ce rtifi ca te of Auth ent ica ti o n he reo n shall have been
manu a ll y s igned by the Tru s te e.
A-4
IN WITNESS WHEREOF, the Successo r Agency to the Temple C ity Community
Redevelopment Agency has caused thi s 2016 Bond to be executed in its name and on its behalf with
the facsimile s ignature of it s Execut ive Director and attested by th e fac s imil e s ig nature of it s Secretary ,
a ll as of the Dated Date set forth above.
ATTEST:
Secretary
SUCCESSOR AGENCY TO THE TEMPLE CITY
COMMUNITY REDEVELOPMENT AGENCY
By: __________________________________ _
Exec uti ve D irector
A-5
STATEMENT OF INSURANCE
[TO C OM E FROM INSURER]
A-6
TRUSTE E'S C ERTIFI C ATE OF AU THE NTICATION
T his is o ne of th e 201 6 Bo nd s desc rib ed in th e w ith in-m entioned Inde nture.
A uth e nti ca ti on Da te : ____ , 201 6
T H E BANK O F NEW YORK MEL LON T RUST
COMPANY , N.A .,
a s Trus tee
By: _______________ ___
Autho r ize d Signato ry
A-7
(FORM OF ASS I GNMEN T)
For value rece ived the und e rs ig ned hereby se ll s, assigns a nd tran sfe rs un to
(Na me, Add ress and Tax Ident ifi ca ti on o r Soc ial Sec urity Number of Ass ig nee)
t he w ithin-reg is te re d B o nd a nd he reby ir re vocab ly constitu te(s) a nd appoints(s)
----------------------------------atto rn ey ,
to tran s fe r the sa me o n t he reg is trat io n boo ks o f the Trustee with fu ll powe r of sub st itut io n in the
prem 1ses.
Da ted:
Signa tu res Guaranteed:
Note: Signa ture(s) m us t be guaranteed by a n
e li g ib le g uara ntor.
A-8
o te: The s ignatures(s) o n th is Ass ignment mu st
co rr espond w it h th e na me (s) as w ritten on
the face of t he wit hin B o nd in every
pa rti c ul ar w it ho ut a ltera ti o n or
enl a rge me nt or a ny c ha nge wha tsoeve r.