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HomeMy WebLinkAbout07-143Resolution WHEREAS, pursuant to Sections 53850, et sea., of the Government Code of the State of California (the "Act") contained in Article 7.6 thereof, entitled "Temporary Borrowing," school districts and county offices of education organized and existing under the laws of the State of California are authorized to borrow money by the issuance of temporary notes for any purpose which the office is authorized to expend moneys, including, but not limited to, current expenses, capital expenditures, and the discharge of any obligation or indebtedness; and WHEREAS, Section 53853 of the Act provides that such notes must be issued in the name of the office by the Board of Supervisors of the County (the "County Board"), the County Superintendent of which has jurisdiction over the office, as soon as possible following the receipt of a resolution of the Board of Education of the office requesting the borrowing; and WHEREAS, the County Superintendent (the "Superintendent"} of Butte County (the "County") has jurisdiction over the Butte County Office of Education (the "Office"); and WHEREAS, the Board of Education of the Office (the "Office Board") has requested that the County Board authorize the issuance of and offer for sale tax and revenue anticipation notes in the name of and on behalf of the Office under and pursuant to the provisions of the Act in an amount not to exceed Twenty-Five Dollars ($25,000,000.00) at an interest rate not to exceed six percent (6%); NOW, THEREFORE, the Board of Supervisors of Butte County hereby resolves as follows: Section 1. Findings. All of the above recitals are true and correct and the County Board so finds and determines. Section 2 _ Authorization of Issuance of Notes; Terms Thereof Paying A ent. The County Board hereby approves the request of the Office Board to issue notes on its behalf in an amount not to exceed $25,000,000.00 principal amount of Notes under Section 53850, et seg., of the Act, designated "Butte County Office of Education, Butte County, State of RESOLUTION OF THE BOARD OF SUPERVISORS OF BUTTE COUNTY AUTHORIZING THE ISSUANCE OF 2007-2008 TAX AND REVENUE ANTICIPATION NOTES FOR BUTTE COUNTY OFFICE OF EDUCATION California, ?007-2008 Tax and Revenue Anticipation Notes" (the "Notes"); to be numbered from 1 consecutively upward in order of issuance; to be in the denominations of $5,000, or integral multiples thereof, to be dated the date of delivery thereof; to mature (without option of prior redemption) on such date as shall be determined by the Superintendent (or the Superintendent's designee) prior to the date of sale of the Notes, and shall bear interest from their date, payable at maturity (if the maturity ofthe Notes is determined to be one year or earlier from the date of issuance) or payable twelve months from the date of issue and at maturity (if the maturity of the Notes is determined to be more than one year from the date of issuance), and computed on a 30- day month/360-day year basis. Subject to Section 3 hereof, both the principal of an interest on the Notes shall be payable at the office of the Butte County Treasurer/Tax Collector (the "County Treasurer"), Oroville, California, which is hereby designated as the paying agent (the "Paying Agent"). Section 3. Form of Notes. The Notes shall be issued in registered form, without coupons, signed by facsimile or manual signature of the County Treasurer or designee, and shall be substantially in the form and substance set forth in Exhibit A attached hereto and by reference incorporated herein, the blanks in said form to be filled in with appropriate words and figures. The Notes shall be issued in fully registered form, and at the closing, there shall be one Note registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York ("DTC"). DTC is hereby appointed depository for the Notes. There shall be printed on each Note the legal opinion of Bartkiewicz, Kronick &Shanhan respecting the validity of said Notes and, immediately following such legal opinion, a certificate executed with the manual or facsimile signature of the Clerk of the County Board, said certificate to be in substantially the following form: I HEREBY CERTIFY that the foregoing is a true and correct copy of the legal opinion regarding the Notes therein described that was manually signed by Bartkiewicz, Kronick &Shanhan, and was dated as of the date of delivery of and payment for said Notes. Manual or Facsimile Signature Clerk of the Board of Supervisors Section 4. Transfer and Exchange of Notes. Subject to the provisions of Section 5 hereof, the registration of any Nate may, in accordance with its terms, be transferred, upon the registration books kept by the Paying Agent for such purpose, by the person in whose name it is registered, in person or by his or her duly authorized attorneys, upon surrender of such Note for cancellation, accompanied by delivery of a written instrument of transfer, fully executed in a form approved by the Paying Agent. Whenever any Note or Notes shall be surrendered for registration or transfer, the Paying Agent shall execute and deliver a new Note or Notes, for a like aggregate principal amount. The Paying Agent shall require the Note owner requesting such registration of transfer to pay any tax or other governmental charge required to be paid with respect to such transfer. The County may require the owner requesting such registration of transfer to pay such additional reasonable charge as may be necessary to cover customary expenses incurred and fees charged by the Paying Agent with respect to such registration of transfer. The Paying Agent may treat 2 the registered owner of any Note as the absolute owner thereof for all purposes whatsoever in accordance with this resolution, and the Paying Agent shall not be affected by any notice to the contrary. Subject to the provisions of Section 4 hereof, Notes may be exchanged at the Office of the Paying Agent in Oroville, California for a like aggregate principal amount of Notes in other authorized denominations. The Paying Agent shall require the payment by the Note owner requesting such exchange of any tax or other governmental charge required to be paid with respect to such exchange. The Paying Agent may require the owner requesting such exchange to pay such additional reasonable charge as may be necessary to cover customary expenses incurred and fees charged by the Paying Agent or the Office with respect to such exchange. Section 5. Use of Depository. (1) The Notes shall be initially registered as provided in Section 3 hereof Registered ownership of the Notes, or any portion thereof, may not thereafter be transferred except: (i) To any successor of Cede & Co., as nominee of the Depository Trust Company, or its nominee, or to any substitute depository designated pursuant to clause (ii) of this Section 5 (a "substitute depository"); provided, that any successor of Cede & Co., as nominee of The Depository Trust Company or a substitute depository, shall be qualified under any applicable laws to provide the services proposed to be provided by it; (ii) To any substitute depository not objected to by the Paying Agent, upon (1) the resignation of The Depository Trust company or its successor (or any substitute depository or its successor) from its functions as depository, or (2) a determination by the Office to substitute another depository for The Depository Trust Company (or its successor) because The Depository Trust Company or its successor (or any substitute depository or its successor) is not longer able to carry out its function as depository; provided, that any such substitute depository shall be qualified under any applicable laws to provide the services proposed to be provided by it; or (iii) To any person as provided below, upon (1) the resignation of the Depository Trust Company or its successor (or substitute depository or its successor) from its functions as depository, or (2) a determination by the Office to remove the Depository Trust Company or its successor (or any substitute depository or its successor) from its functions as depository. (2) In the case of any transfer pursuant to clause (i) or clause (ii) of subsection (1) of this Section 5, upon receipt of the outstanding Notes by the Paying Agent, together with a request of the Office to the Paying Agent, a new Note shall be executed and delivered in the aggregate principal amount of the Notes registered in the name of such successor or such substitute depository, or their nominees, as the case may be, all as specified in such request of the Office. In the case of any transfer pursuant to clause (iii) of subsection (1) of this subparagraph (d), upon receipt of the outstanding Notes by the Paying Agent together with a request of the Office to the Paying Agent, new Notes shall be executed and delivered in such denominations numbered in the manner determined by the Paying Agent and registered in the names of such persons as are requested in such a request of the Office; provided that the Paying Agent shall not be required to deliver such new Notes within a period less than sixty (60) days from the date of receipt of such a request of the Office. Thereafter, Notes shall be transferred pursuant to Section 3 hereof. (3) The Office and the Paying Agent shall be entitled to treat the person in whose name any Note is registered as the owner thereof for all purposes of this resolution and any applicable laws, notwithstanding any notice to the contrary received by the Paying Agent or the Office; and the Office and the Paying Agent shall have no responsibility for transmitting payments to, communication with, notifying, or otherwise dealing with any beneficial owners of the Notes and neither the Office nor the Paying Agent will have any responsibility or obligations, legal or otherwise, to the beneficial owners or to any other party, including The Depository Trust Company or its successor (or substitute depository or its successor), except for the Owner of any Notes. (4) So long as the outstanding Notes are registered in the name of Cede & Co. or its registered assigns, the Office and the Paying Agent shall cooperate with Cede & Co., as sole registered Owner, or its registered assigns in effecting payment of the principal of and interest on the Notes by arranging for payment in such manner that funds for such payments are properly identified and are made immediately available on the date they are due. Section 6. Deposit of Note Proceeds; No Arbitrage. The moneys so borrowed shall be initially deposited in the Treasury of the County in a proceeds fund (the "Proceeds Funds") to the credit of the Office and subsequently credited upon delivery of the District Notes to the respective general funds of the districts in the amount of the respective loans requested from the Office by certain school districts within the County. Until used or expended, the moneys may be invested in investment securities by the County Treasurer directly, or through an investment agreement, in investments as permitted by applicable California law, and meeting Standard and Poor's Ratings Services criteria for investments, or other investments approved by Standard and Poor's Rating Services including, but not limited to, investment in the Local Agency Investment Fund maintained by the Treasurer of the State of California. The Office has covenanted that it will make no use of the proceeds of the Notes that would cause the Notes to be "arbitrage bonds" under Section 148 of the Code; and, to that end, so long as any of the Notes are outstanding, the Office, and all of its officers having custody or control of such proceeds, shall comply with all requirements of (a) said section, including restrictions on the use and investment of proceeds of the Notes and the rebate of a portion of investment earnings on certain amounts, including proceeds of the Notes, if required, to the Federal government, and (b) of the Income Tax Regulations of the United States Treasury promulgated thereunder or any predecessor provisions, to the extent that such regulations are, at the time, applicable and in effect, so that the Notes will not be "arbitrage bonds." To the extent that monies invested or held by the County are subject to arbitrage rebate, neither the County or any officer or employee of the County shall assume hereunder or under the provisions of any rebate certificate any duty or obligation to make the actual calculations of arbitrage rebate liability of the Office, or to pay any such rebate or any penalties in regard thereto if the Office miscalculates or fails to pay or cause such rebate or such penalties to be paid. 4 Section 7. Payment of Notes. (A) Source of Payment. The principal amount of the Notes, together with the interest thereon, shall be payable from taxes, income, revenue, cash receipts, and other moneys which are received by the Office during fiscal year 2007-2008 and which are available therefor. The Notes shall be a general obligation of the Office, and, to the extent the Notes are not paid from the Pledged Revenues defined below, the Notes shall be paid with interest thereon from any other moneys of the Office lawfully available therefor, as provided herein and by law. (B) Pledged Revenues. The Notes shall be secured by a pledge of and first lien and charge against the first unrestricted revenues to be received by the County on behalf of the Office in such months and in such amounts as shall be determined by the Butte County Superintendent of Schools (the "Superintendent"), or the Superintendent's designee, prior to the date of the sale of the Notes, sufficient to pay the principal of and interest on the Notes at maturity (such pledged amounts being hereinafter called the "Pledged Revenues"). The term "unrestricted revenues" shall mean taxes, income, revenue, cash receipts, and other money of the Office as provided in Section 53856 of the Act, which are intended as receipts for the general fund of the Office and which are generally available for the payment of current expenses and other obligations of the Office, all as further defined in the Office Resolution. (C) Covenant Re~;ardingAdditional Short-Term Borrowing. The Office has covenanted and warranted that it will not request the County Treasurer/Tax Collector (in such capacity, the "County Treasurer") to make temporary transfers of funds in the custody of the County Treasurer to meet any obligations of the Office during the 2007-2008 fiscal year pursuant to the authority of Article XVI, Section b, of the Constitution of the State of California or any other legal authority. (D) Deposit of Pledged Revenues in Repayment Fund. The Board of Education and each District have agreed to deposit, and the County shall receive from the Board of Education and each District, the Pledged Revenues in the County treasury in a special fund designated as the "Butte County Board of Education, 2007-2008 Tax and Revenue Anticipation Notes Repayment Fund" and, for each District, a special fund designated the "[name ofJ School District, 2007-2008 Tax and Revenue Anticipation Note Repayment Fund," (herein called the "Repayment Funds"), not later than the date the Board of Education and/or District receive(s) such funds. Any moneys placed in the Repayment Funds shall be for the benefit of the holders of the Notes, and, until the Notes and the promissory notes of each District and all interest thereon are paid or until provision has been made for such payment, the moneys in the Repayment Funds shall be applied only for the purposes for which the Repayment Funds are created. (E) Disbursement and Investment of Moneys in Repayment Fund. From the date this Resolution takes effect, all Pledged Revenues shall, when received, be deposited in the Repayment Fund to be held, invested and accounted for as provided herein. After such date as the amount of Pledged Revenues deposited in the Repayment Fund shall be sufficient to pay in full the principal of and interest on the Notes, when due, any moneys in excess of such amount remaining in or accruing to the Repayment Fund shall be transferred to the general fund of the Office upon the request of the Office. On the maturity date of the Notes, the moneys in the Repayment Fund shall be used, to the extent necessary, to pay the principal of and interest on the Notes. Moneys in the Repayment Fund shall be invested in investment securities by the County Treasurer, or such other appropriate investment officer of the County, directly, or through an investment agreement, in investments as permitted by applicable California law, as it is now in effect and as it may be amended, modified or supplemented from time to time, and the proceeds of any such investments shall, as received, be deposited in the Repayment Fund and shall be part of the Pledged Revenues. Investments must meet Standard & Poor's Credit Markets Services criteria for investments, or other investments approved by Standard and Poor's Credit Markets Services including, but not limited to, investment in the Local Agency Investment Fund maintained by the Treasurer of the State of California. Moneys so invested, and the earnings thereon, shall be accounted for as Pledged Revenues, to be withdrawn solely for deposit in the Repayment Fund and used, to the extent necessary, to pay the principal of and interest on the Notes. Sufficient money for the payment of principal and interest for the maturing Notes must be placed into the Repayment Fund in the County Treasury at least one business day prior to the maturity of the Notes. Section 8. Execution of Notes. The County Board hereby directs the County Treasurer to sign the Notes manually or by facsimile signature, the Clerk of the County Board (the "Clerk") to countersign the Notes manually or by facsimile signature (provided at least one of the signatures is manual); the Clerk to affix the seal of the County thereto or a facsimile of the seal thereto; and said officers to cause the blank spaces thereof to be filled in as may be appropriate. Section 9. Sale of the Notes. The Notes will be sold either at a private sale to an underwriter or underwriters upon terms and conditions as are acceptable to the Office and consistent herewith or by competitive bid and awarded as set forth in an Official Notice of Sale which the Financial Advisor and the Superintendent of the Office, or his or her designee, are hereby authorized to prepare consistent with this Resolution. The County Treasurer, or his or her designee, is hereby authorized to decide between competitive or private sale in conjunction with advice from the financial advisor. If the sale is negotiated, the County Treasurer, or his or her designee, is authorized to negotiate the sale of no more than $25,000,000.00 of notes at an interest rate of not more than 6%. Ifthe sale is by competitive bid, the Superintendent of the Office, or his or her designee, is hereby directed to execute, and the Clerk of the Office is directed to publish, the Official Notice of Sale. The County Treasurer, with the prior concurrence of the Superintendent of the Office or the Superintendent's designee, is authorized to award the sale to said bidder. Section 10. Paving Agent. The County Treasurer is hereby appointed to act as the bond registrar and the Paying Agent of the Office for the purpose of receiving the payments of principal and interest made by the Office on the Notes at maturity, to hold, allocate, use, and apply said payments and to perform such other duties and powers of the Paying Agent as are prescribed in this Resolution. Section 11. Delivery of Notes. The proper officers of the County shall cause the 6 Notes to be delivered to the successful bidder when the County Treasurer has received confirmation of receipt of the proceeds. Section 13. Further Actions Authorized. The Cvunty Treasurer and other appropriate officers of the County are further authorized and directed to make, execute and deliver to the purchaser or purchasers of the Notes (a) a Certificate in the form customarily required by purchasers of bonds of public corporations generally, certifying to the genuineness and the execution of the Notes, and (b) a receipt in similar form evidencing the payment of the purchase price of the Notes which receipt shall be conclusive evidence that said purchase price of the Notes have been paid and has been received on the behalf of the Office. Any purchaser or subsequent taker or holder of the Notes is hereby authorized to rely upon and shall be justified in relying upon any Certificate or receipt with respect to the Notes. Such officers and any other officers of the Office or of the County are hereby authorized to execute any and all other documents required to consummate the sale and delivery of the Notes. PASSED AND ADOPTED by the Board of Supervisors of Butte County this 28th day of August, 2007, by the following vote: AYES: Supervisors Connelly, Kirk, Josiassen, Yamaguchi, and Chair Dolan NOES: None ABSENT: None Chair, Board of Supervisors, County of Butte, California 7 n++or+• The following are provided as Sample Forms Only - No Signatures Required EXHIBIT A [Attach Note] FORM OF NOTE BUTTE COUNTY OFFICE OF EDUCATION (BUTTE COUNTY, CALIFORNIA) 2007-2008 TAX AND REVENUE ANTICIPATION NOTE INTEREST RATE: MATURITY DATE: ISSUE DATE: CUSIP: % , 2008 , 2007 REGISTERED OWNER: CEDE & CO. PRINCIPAL SUM: DOLLARS The BUTTE COUNTY OFFICE OF EDUCATION, Butte County, State of California (the "Office"), acknowledges itself indebted, and promises to pay, to the Registered Owner stated above, or registered assigns (the "Owner"), on the Maturity Date stated above, the Principal Sum stated above, in lawful money of the United States of America, and to pay interest thereon in like lawful money at the rate per annum stated above on the Maturity Date stated above, calculated on the basis of 360-day year comprised of twelve 30-day months. It is hereby certified, recited and declared that this Note is one of an authorized issue of notes in the aggregate principal amount of Dollars ($ ,000,000.00), all of like tenor, issued pursuant to the provisions of resolution of the Board of Supervisors (the "Board") of Butte County (the "County") duly passed and adopted on , 2007 (the "Resolution"), and pursuant to Article 7.6 (commencing with section 53850) of Chapter 4, Part 1, Division 2, Title S, of the California Government Code, and that all conditions, things and acts required to exist, happen and be performed precedent to and in the issuance of this Note exist, have happened and have been performed in regular and due time, form and manner as required by law, and that this Note, together with all other indebtedness and obligations of the County, does not exceed any limit prescribed by the Constitution or statutes of the State of California. The principal amount of the Notes, together with the interest thereon, shall be payable only from taxes, revenue and other moneys that are received by the County on behalf of the Office for the Repayment Fund of the Office (as defined in the Resolution) during Fiscal Year 2007-2008 As security for the payment of the principal of and interest on the Notes, the Board, in the name of the Office, has pledged the first "unrestricted revenues", as hereinafter defined, (a) in an amount equal to twenty-five percent (2S%) of the principal amount of the Notes from the unrestricted revenues I FormofdoteButteCOE. doc FORM OF NOTE received by the County on behalf of the Office in the month of , 2008, (b) in an amount equal to twenty-five percent (25%) of the principal amount of the Notes from the unrestricted revenues received by the County on behalf of the Office in the month of 2008, (c) in an amount equal to twenty-five percent (25%) of the principal amount of the Notes from the unrestricted revenues received by the County on behalf of the Office in the month of , 2008, and (d) in an amount equal to twenty-five percent (25%) of the principal amount of the Notes, plus an amount sufficient to pay interest on the Notes, from unrestricted revenues received by the County on behalf of the Office in the month of , 2008, such pledged amounts being hereinafter called the "Pledged Revenues"); and the principal of the Notes and the interest thereon shall constitute a first lien and charge against and shall be payable from the first money received by the County from such Pledged Revenues, and to the extent not so paid shall be paid from any other moneys of the County lawfully available therefor. The term "unrestricted revenues" shall mean taxes, income, revenue and other moneys intended as receipts for the general fund of the Office and which are generally available for the payment of current expenses and other obligations of the Office. The Notes are issuable as fully registered notes, without coupons, in denominations of $5,000 each or any integral multiple thereof. Subject to the limitations and conditions as provided in the Resolution, Notes may be exchanged for a like aggregate principal amount of Notes of other authorized denominations and of the same maturity. The Notes are not subject to redemption prior to maturity. This Note is transferable by the Owner hereof, but only under the circumstances, in the manner and subject to the limitations provided in the Resolution. Upon registration of such transfer a new Note or Notes, of authorized denomination or denominations, for the same aggregate principal amount and of the same maturity will be issued to the transferee in exchange for this Note. The Board may treat the Owner hereof as the absolute owner hereof for all purposes and the Board shall not be affected by any notice to the contrary. Unless this Note is presented by an authorized representative of The Depository Trust Company to the issuer or its agent for registration of transfer, exchange or payment, and any Note issued is registered in the name of Cede & Co. or such other name as requested by an authorized representative of The Depository Trust Company and any payment is made to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the registered owner hereof, Cede & Co., has an interest herein. 2 FormofNoteButteCOE. doc FORM OF NOTE IN WITNESS WHEREOF, the Board of Supervisors of Butte County, California has caused this Note to be issued in the name of the County and to be executed by the manual or facsimile signature of the Treasurer-Tax Collector and countersigned by the manual or facsimile signature of the Clerk of the Board, all as of the Issue Date stated above. COUNTY OF BUTTE COUNTY By Treasurer-Tax Collector Countersigned: Clerk of the Board of Supervisors 3 FormoflVoteButteCOE.doc FORM OF NOTE ASSIGNMENT Far value received the undersigned hereby sells, assigns and transfers unto (Name, Address and Tax Identification or Social Security Number of Assignee) the within registered Note and hereby irrevocably constitute(s) and appoints attorney, to transfer the same on the Note register of the Treasurer-Tax Collector with full power of substitution in the premises. Dated: Signature: Note: The signature(s) on this Assignment must correspond with the name(s) as w=ritten on the face of the within Note in every' particular without alternation or enlargement or ane change whatsoever. Signature Guaranteed: Note: Signature(s) must be guaranteed by a qualified guarantor. 4 FonnoflVoteButteCOE.doc FORM OF NOTE FORM OF BOND COUNSEL OPINION INSERT OPINION) Very truly yours, BARTKIEWICZ, KRONICK & SHANAHAN A Professional Corporation I HEREBY CERTIFY that the foregoing is a true and correct copy of the legal opinion upon the Notes therein described that was manually signed by Bartkiewicz, Kronick & Shanahan, and was dated as of the date of delivery of and payment for said Notes. Clerk of the Board of Supervisors FormofN oteButteCO E. do c The following are provided as Sample Forms Only - No Signatures Required r~ESOI.UTION NO. 08- RESOIJUTION OF TIE OFFICE OF EDUCATION OF BUTTE COUNT' AUTIIORI~ING TIME ISSUANCE OF 2007-2008 TAX AND REVENUE ANTICIPATION NOTES FOR SAID OFFICE AND REQUESTING THE BOARD OF SUPERVISORS OF BUTTE COUNTY TO ISSUE SAID NOTES WHEREAS, pursuant to Sections 53850, et seg., of tl,e Gove...:;,,,t C;~ c of tl~e SiaC of California (the "Act") contained in Article 7.6 thereof, entitled "Temporary Borrowing," on or after the first day of any fiscal year (being July 1), the Butte County Office of Education (the "Office") may borrow money by issuing tax and revenue anticipation notes for any purpose for which the Office is authorized to expend moneys, including, but not limited to, current expenses, capital expenditures, and the discharge of any obligation or indebtedness of the Office; and WHEREAS, Section 53853 of the Act provides that such notes must be issued in the name of the Office by the Board of Supervisors of the county (the "Co~~nty Board"),the county superintendent of which has jurisdiction over the Office, as soon. as possible following the receipt of a resolution. of the governing board of the Office requesting the borrowing; and WHEREAS, the County Superintendent of Butte County (the "County") has jurisdiction over the Office, and this Board of Education (the "Office Board"), being the governing board of the Office, hereby requests the borrowing of not to exceed. Twenty-Five Million Dollars ($25,000,000) an interest rate not to exceed six percent (6%) through the issue by the County Board of 2007-2008 Tax and Revenue Anticipation Notes (the "dotes") in the name of the Office; and. WHEREAS, the Office Board has found and determined that said $25,000,000.00 maximum principal amount of Notes to be issued by the County Board on behalf of the Office in fiscal. year 200 i-2008, when added to the interest payable thereon, does not exceed eighty-five percent (85%) of the estimated amount of the uncollected taxes, income, revenue (including, but not limited to, revenue from state and federal governments), cash receipts and other moneys of the Office which will be available for the payment of the Notes anal interest thereon, as required by Section 53858 of the Act; and NOW, THEREFORE, the Board of Education of Butte County Office of Education hereby resolves as follows: Section 1, Findings. All of the above recitals are true and correct and the Office Board so finds and determines. Section 2. Authorization of Issuance of Notes• Terns Thereof Payingh ent. The Office Board hereby authortzes the borrowing of an amount not to exceed $25,000,000.00 principal. amount of and requests the County Board to issue in the name of the Office, Notes under Sections 53850, et seq., of the Act, designated "Butte Co>,nt~~ Offic° ~' ~'~'--~~~-~•- ~'_ ., `> ~ ~ ~/t 1:11Ul.RLl Vdl, 1?uC~.L' 1 bcoe authorizing resolution - 2007-08 trans.DOC. (~(lt)nty CtatP of ~!,'al;f~.-~~:~ ~!?~'?-~~~o iati a11ii I~eV~nl[e l~ntiCipatiOn 1~OteS" (tl'xe "Notes"}; t0 be n',zr::bered from 1 consecutively upward in order of issuance; to be in the denominations of $5,000, or integral multiples thereof, to be dated the date of delivery thereof to mature (without option. of prior redemption) on s>>ch date as shall be deterrniiied by the Superintendent (or the Superintendent's designee) prior to the date of sale of the Notes, and shall bear interest from their date, payable at maturity (if the maturity of the Notes is determined to be one year or earlier from the date of issuance) or payable twelve months from the date of issue and at maturity (if the maturity of the Notes is determined to be more than one year from the date of issuance), and computed on a 30-day month/360-day year basis. The Butte County Treasurer/Tax Collector (the "County Treasurer") is hereby designated as the paying agent (the "Paying Agent"). The Office Board hereby authorizes loans to be made to certain of those districts within the Office's jurisdiction (the "Districts") from. the proceeds of the Notes, provided that such Loans shall be repayable at a rate of interest, computed on a 30-day month/360-day year basis, at the rate to be borne by the Notes, and as otherwise provided in the resolutions of the Districts authorizing such loans (the "District Resolutions"). Section 3. Form of Notes. The Notes shall be in the form attached to the resolution entitled "Resolution of the Board of Supervisors of Butte County Authorizing the Issuance of the 2007-2008 Tax and Revenue Anticipation Notes for the Butte County Office of Education." That resolution, to be adopted by the County Board in substantially the form on file with the Secretary of the Office Board, is hereby approved. Section 4. Deposit of Note Proceeds• No Arbitrage. The moneys so borrowed shall be initially deposited in the Treasury of the County in a proceeds fund to the credit of the Office and subsequently credited in the amount of the respective loans concurrently with the delivery of the District Notes to the respective general funds of the District. Until used or expended, the ~~~oneys may be invested in investment securities by the County Treasurer directly, or through an investment agreement, in investments as permitted by applicable California law, and meeting Standard and Poor's Ratings Services criteria for investments, or other investments approved by Standard and Poor's Rating Services including, but not limited to, investment in the Local Agency investment Fund maintained by the Treasurer of the State of California. The Office hereby covenants that it will make no use of the proceeds of the Notes that would cause the Notes to be "arbitrage bonds" under Section 148 of the Code; and, to that end, so long as any of the Notes are outstanding, the Office, and all. of its officers having custody or control of such. proceeds, shall comply with all requirements of (a) said section, including restrictions on the use and investment of proceeds of the Notes and the rebate of a portion of investment earnings on certain amounts, including proceeds of the Notes, if required, to the Federal government, and (b) of the Income Tax Regulations of the United States Treasury promulgated thereunder or any predecessor provisions, to the extent that such regulations are, at the time, applicable and in effect, so that the Notes will not be "arbitrage bonds." Section 5. Payment of Notes. (A) Source of Payment. The principal amount of the Notes, together with the interest thereon, shall be payable from taxes, income, revenue, cash receipts, and other moneys which are received by the Office during fiscal year ?007_2nOg a::d ~vhicl~ are available therefor. The ivotes y bcoe authorizing resolution - 2007-08 trans.DOC. shall be a fuenarat ~~;1;~.~f:,.., _~~,__ ,.ter a - -=bc.:c.:v~i ~.:t t,ttc' 'v111CE, a1]~, t0 tre extent the NOteS are nc)t pa?d frn~,.m the .Pledged Revenues defined below, the Notes shall be paid with interest thereon from ar)y other moneys of the Office Lawfully available therefor, as provided herein and by Law, (B) Pledged Revenues, The Notes shall be secured by a pledge of and. first lien a,.d charge against tt;e first unrestricted revenues to be received by the County on behalf of the Office in such months and in s~,zch amounts as shall be determined by the Butte County Superintendent of Schools (the "Superintendent"), or the Superintendent's designee, prior to the date of the sale of the Notes, sufficient to pay the principal of and interest on the Notes at maturity (such pledged amounts being hereinafter called the "Pledged Revenues"). The term "unrestricted. revenues" shall mean taxes, :income, revenue, cash receipts, and othe:::~o.e° ~ of tlde Crffrce a , Section 53856 of the Act, which are intended as receipts for the general fund of the Offi eeand which are generally available for the payment of current expenses and other obligations of the Office, including, but not limited to, those amounts paid by the Districts under the District Notes. The dates so designated shall constitute the "deposit dates" referred. to in Section 5(B) of each District resolution. (C) Covenant Regardine Additional Short-Ter~rr Borrowing. The Office hereby covenants and warrants that rt wrll not request the County Tr~~^„-- --~T~_. „ „ capacity, the "County Treasurer") to make tem or "'""iizi~ 1 ax `'ottector (in such p ary transfers of° funds irr the custody of the County Treasurer to meet any obligations of the Office during the 2007-2008 fiscal year pursuant to the authority of Article XVI, Section 6, of the Constitution of the State of California or any other legal authority. (D) Deposit of Pledged Revenues in Re>,avment Fund. The Board of Education shall deposit Pledged Revenues rn the County treasury in a special fund designated as the "Butte County Board of Education, 2007-200$ Tax and Revenue Anticipation Notes Repayment Fund." (herein called the "Repayment Fund") and applied as directed in this Resolution. Any moneys placed in the Repayment Fund shall be for the benefit of the holders of the Notes, and, until the Notes and all interest thereon are paid or until provision has been made for the payment of the Notes at maturity with interest to maturity, the moneys in the Repayment F,~nd shall be applied o~,ly ~r tl:~e purposes for which the Repayment Fund is created. (E) Disbursement and Investment of Mone- s in Re a ment Fund. From the date this Resolution takes effect, all Pledged Revenues shall, when received, be deposited in the Repayment Fund to be held, invested and accounted for as provided herein. After such date as the amount of Pledged Revenues deposited in the Repayment Fund shall be sufficient to pay in full the principal of and interest on the Notes, when due, any moneys in excess of such amount remaining in or accruing to the Repayment Fund shall be transferred to the general fund of the Office upon the request of the Office. The Office hereby covenants to return to the respective District any amount received by the Office which represents any portion of a deposit made by the District described in Section 4 hereof and the investment earnings thereon. On the maturity date of the Notes, the moneys in the Repayment Fund shall be used, to the extent necessary, to pay the principal of and interest on the Notes. Moneys in the Repayment Fund shall be invested in investment securities by the County Treasurer, or such other appropriate investrnPr:± officer :,f tl~e County, directly, or through an 3 bcoe authorizing resolution - 2007-08 trans.DOC. rnvestment agrPetl,P„t Sn inc~nn4w. ~..s„ -- _ ~~~ S~IYIJ a, ~o,`it~lu~u ~y apptrc,abie t/altfornra law, as rt rs now rrr affect and as it may be ar~,ended, modified or supplemented from time to time, and the proceeds of any such investments shall, as received, be deposited in the Repayment Fund and shall be part of the Piedged Revenues. Investments must meet Standard & Poor's Rating Services criteria for investments, or other investments approved by Standard and Poor's Rating Services incl~~ding, i;-.rt net 1ir~tited to, the investments in the Local. Agency Investment Fund maintained by the Treasurer of ±he State of California. honeys so invested, and the earnings thereon, shall be accounted for as Pledged Revenues, to be withdrawn solely for deposit in the Repayment Fund and used, to the extent necessary, to pay the principal of and interest on the Notes. Suff dent money for the payment of principal and interest for the r~~aiuring Notes must be placed into the Repayment Fund in the County Treasurv at loasr n„P h„giros ,~ ,,.,. I~IGteS. - -- -- --~ S uuy urior ~ ~iiC i]!1atZ.rrity ~I the Section 6. Execution of Notes. The Office hereby requests the County Treasurer, or designated deputy thereof, to sign the Notes manually or by facsimile signature; the Clerk of the County Board (the "Clerk") to countersign the Notes manually or by facsimile signature (provided at least one of the foregoing signatures is manual; the Clerk to affix the seal of the County or a facsimile of the seal thereto; and said officers to cause the blank spaces thereof to be filled in as may be appropriate. Section 7. Sale of the Notes. The Notes will be sold either at a private sale to an underwriter or underwriters upon terms and conditions as are acceptable to the Office and consistent herewith or by competitive bid and awarded as set forth in an Official Notice of Sale which the Financial Advisor and the County Superintendent, or his or her designee, are hereby authorized to prepare consistent with this Resolution. The County Treasurer, or his or her designee, is hereby authorized to decide between competitive or private sale in conjunction with advice from the financial advisor. If the sa1_e is negotiated, the County Treasurer, or his or her designee, is authorized to negotiate the sale of no more than $25,000,000.00 of notes at an interest rate of not more than six percent (6%). If the sale is by competitive bid, the Superintendent, or his or her designee, ?s hereby directed to execute, and the Clerk of the Office is directed to publish, the Official Notice of Sale. The County Treasurer is authorized to award the sale to said bidder. Section 8. Paving A ent. The County Treasurer is hereby appointed to act as the registrar and Faying Agent of the Office for the purpose of receiving the payments of principal and interest made by the Office on the Notes at maturity, to hold, allocate, use, and apply said payments and to perfo~~n such other duties and powers of the Paying Agent as are prescribed in this Resolution. The Office shall compensate the County for the services of the County Treasurer for any expense determined by the County Treasurer. Section 9. Authorization of Preliminary Official Statement and Official Statement. The Official Statement relating to the Notes in preliminary forni is hereby approved. The Superintendent, or his or her designee, is hereby authorized and requested to execute and deliver the Official Statement in substantially the form presented to the Office Board, with such. changes and additions thereto deemed advisable by the Superintendent or any other qualified. officer of the Office. The Office authorizes the distribution b~, ±he I;nun~oial advisor. of the Official 4 bcoe authorizing resolution - 2007-08 trans.DOC. statement to ilY{1C11Pr4zFIC n„+^nl~.,.,...-.. c at_ _. F r r- ---t--~...., r ~.a.Ja,u~~i~ ua utC ivUieS, a17C1 a~t110r1ZeS and dlreCtS t13e Suj7erlntendCnt, or the S'.:perinter~dent's designee, on behait of the Office, to deem "final" pursuant to Rule 15c2- 12 under the Securities Exchange Act of 1934 (the "Rule") the Official Staterr~er~t prior to its distribution by the Office's financial advisor. The execution of the Official Statement, shall be conclusive evidence of the approval of the Official Statement by the Office. The Superir_tendPnt, or the Superintendent's designee, is separately authorized and directed to execute a statement that the facts contained in the Official Statement, and any supplement or amendment thereto (which shall be deemed an original part thereto for purposes of such statement) were, at the time of the sale of the Notes, true and correct and are material respects and that the Official. Statement did not. can tl,e date of tl,e sale ::f t:e h,ot,s, acid does not, as of the date of the delivery of the Notes, contain any untrue statement of a material fact with respect to the Office or omit to state material facts with respect to the Office required to be stated or necessary to make any statement made therein not misleading in the light of the circumstances under which it was made. The Superintendent, or the Superintendent's designee, sha11_ take such further action as prior to the signing of the Official Statement as are deemed necessary or appropriate to verify the accuracy thereof. The Superintendent, or his or her designee, is hereby authorized to execute, as ~~ecessary, a continuing disclosure certificate as may be required pursuant to subsection 15c2-12(b)(5)(i)(C) of the Rule. Section 10. Belivery of Notes. The proper officers of the County Board are hereby requested to deliver the Notes to the successful bidder when the County Treasurer has received confirmation of receipt of the proceeds. All actions heretofore taken by the officers and. agents of the Office Board with respect to the Notes are hereby approved, confirmed, and ratified, and the officers of the Office Board are hereby authorized and directed to do ar~y and ali things and take any and all actions which they, or any of them, may deem necessary or advisable in order to consummate the lawful issuance and delivery of the Notes in accordance with this Resolution, any supplemental resolution to this Resolution, and resolutions hereafter adopted by the County Board. Section 11. Financial Advisor. The Office Board hereby confirms the hiring of Government Financial Strategies inc., as financial advisor to the Office with respect to the sale of the Notes. Section 12. Bond Counsel. The Office Board hereby confirms the hiring of Bartkiewicz, Kronick ~. Shanahan as bond counsel to the Office with respect to the sale of the Notes. Section 13. Further Actions Authorized. All actions heretofore taken by the officers and agents of the Office Board with respect to the sale and issuance of the Notes are hereby approved, and the Superintendent, the Secretary of the Board and any and all other officers of the Office are hereby authorized and directed for and in the name and on behalf of the Office, to do any and all. things and take any and all actions related to the execution ar-d delivery of any and. all certificates, requisitions, agreements and other documents, which they, or any of them, may deem necessary or advisable in order to consummate the lawful issuance and delivery of the Notes. The Secretary of the Board is hereby authorized. and directed ±o file a c;;rtified co py of 5 bcoe authorizing resolution - 2007-08 trans.DOC, tl1~.f ~FCn2~i4irzrti ,zistl, tb,o !'',.....~_, r~_._~._, s . - -~- ~_~~ ~,~,~LY~y u~u~~, vvfii~ri siiaii const?tute t'~e reciuest of the Of ice: that the County Board issue and sell the Dotes as soon as practicable, and to simultaneously provide certified copies of this iZesolution to the County Treasurer. PASSED AND ADOPTED by the Board of Education of the Butte County Office of ~;ducation this i3t~' day of August, 2007, by the following vote: AYES: 1~'OES: ABSENT: President, Board of Education Butte rpiitZt}' Offiee of.Educattvit Attest: Clerk, Board of Education Butte County Office of .Education 6 bcoe authorizing resolution - 2007-08 trans.DOC. SF.C:RE>!'~~Y'S CERTIFICATE Certified Copy of Resolution __ Adopted on August 13, 2007 I, Don McNelis, hereby certify that I am the Superintendent of the Butte County Office of Education, a county office duly organized and existing under and by virtue of the Constitution and laws of the State of California (the "Office") and that as such i am authorized. to execute this Certificate on behalf of the Office. I hereby further certify that attached hereto is a complete copy of a resolution which was duly adopted by the Board of Education of the Office at a meeting thereof which was duly called and held on August 13th, 2007, and at such. meeting a quorum was present and acting throughout, and that said resolution has not been amended, modified or rescinded since the date of adoption and is now in full force and effect. Dated: _ _, 2007 BUTTE COUNTY OFFICE OF EDUCATION By: Don McNelis, Superintendent bcoe authorizing resolution - 2007-08 trans.DOC ~+ A~~~~i'~' A [A~t~cl~ Spec~rr~en 1~iote ~'oa~ i~r~~t~e ~oa~~~y E~fi<QCe o€ Ec~uca~tioo~ bcoe authorizing resolution - 2007-08 trans.DOC ~~:~~ ~'1~yx ~..~.~ R z ~.r y~:~: ~ ~SS~~.~ CUSiP: PATE: H "/;, ~ , 2^vv8 ~ 200. 9 PEGISTE~D OWNER: CEDE «~i CO. PRINCIPAL SUM: DOLLARS The BUTTE COUNTY OF'1~'ICE OF EDUCATION, :Butte County, State of California (the "O~ce"), acknowledges itself indebted, and promises to pay, to the Registered Owner stated above, or registered assigns (the "Owner"), on the 14~~aturity .Rate stated above, the Principal Sum stated above, in lawful money of the United States of America, and to pay interest thereon in like lawful money at the rate per annum stated above on the Maturity Date stated above, calculated on the basis of 360-day year comprised of twelve 30-day months. It is hereby certified, recited and declared that this Note is one of an authorized issue of notes in the aggregate principal amount of I3ollars ($ ,000,000.00), all of tike tenor, issued pursuant to the provisions of resolution of the Board of Supervisors (the "Board") of Butte County (the "County") duly passed and adopted on , 200? (tle F6ReSOlution"), and pursuant to Article 7.6 (commencing with section 53850) of Chapter 4, Part 1, Division 2, Title S, of the California Government Code, and that all conditions, things and acts required to exist, happen and be performed precedent to and in the issuance of this Note exist, have happened and have been performed in regular and due time, form and manner as required by law, and that this Note, together with all other indebtedness and obligations of the County, does not exeeed any limit prescribed by the Constitution or statutes of the State of California. The principal amount of the Notes, together with the interest thereon, shall be payable only from taxes, revenue and other moneys that are received by the County on behalf of the Office for the Repayment Fund. of the Office (as defiried in the P.esolution) during I~iscal Year 2007-2008 As security for the payment of the principal of ~~ad interest on the Motes, the Board, ipi tl`re name of the Ofrlce, has pledged the farst "unrestricted revenues", as hereinafter de ~ned, (a) in an amount equal to twenty-five pereLat (2~°/a) of the principal amount of the ?Totes from t1Ze unrestricted revenues Fo.~ca#!VoYe~-.ztte^,OE. tlac ~FS~~ ~~ iFe~ &. received by the County on behalf of the Office in the month of , 2005, (b) i~Y an amount equal to t~=~e::t,>-~.~e pe;ccYrt (2~°~0) u the principal amount ofthe Notes f?-nYrY tl"ie urYresiricted revenues received by the County on behalf ofthe Office in the month of 2®08; (c) Yn an anYOUYat equal *~ ~},e~ ~,~-~fivTe pereerlt (25°io) or tree prmctpat amount of the Notes i om the unrestricted revenues received by the County o;. behalf of the Office in the month of , 2008, and (d) in an amount equal to twenty-five percent (25%) of the principal amount of the Notes, plus an amount sufficient to pay interest on the Notes, from unrestricted revenues received lay the County on behalf of the Office in the month of , 2008, each pledged amocnts being hereinafter called «.~ ~: _~ti;:~„~, x:;,.;,x„mow, y, a~Pd tlae prYrc:Yal of t ae ~"dvtes arrd the Ynterest Thereon shall constitute a first lien and charge against and shall be payable from the first money received by the County tom such pledged Revea=ues, and to the extent n:a± sc paid shall be paid from any other moneys of the County lawfully available therefor. The term "unrestricted revenues" shall mean taxes, income, revenue and other moneys intended as receipts for the general fund of the Office and which are generally available for the payment of current expenses and other obligations of the Office. The ~r„fA~. .,_o ,.. ~...~ ~... YssuabYC as fuYYy registered notes, without coupons, in denominations of $5,000 each or any integral multiple thereof. Subject to the limitations and conditions as provided in the Resolution, Notes may be exchanged for a like aggregate principal amount of Notes of other authorized denominations and of the same maturity. The Notes are not subject to redemption prior to maturity. This Note is transferable by the Owner hereof; but only under the circumstances, in the manner and subject to the limitations provided in the Resolution. Upon registration of such transfer a new Note or Notes, of authorized denomination or denominations, for the same aggregate principal amount and of the same maturity will be issued to the transferee in exchange for this Note. The Board may treat the Owner hereof as the absolute owner hereof for all purposes and the Board shall not be affected by any notice to the contrary. Unless this Note is presented by an authorized representative of The Depository Trust Company to the issuer or its agent for registration of transfer, exchange or payment, and any Note issued is registered in the name of Cede & Co. or such other name as requested by an authorized representative of The Depository Trust Company and any payment is made to Cede & Co_, ANY TRANSFER, PLEDGE OR OTHER USE ITEREOF FOR VALUE OR OTHER~SE BY OR TO ANA pI;RSON IS WRONGFUL since the registered oExmer hereof; Cede & Co., has an interest herein. 2 Fo; mafi~'o~eButteCOE. doc ~~ ~~ ~ ~~ II01 ~~ 4~HEl~®~', the ~3oard of Supervisors of butte County, C~lffornba has caused thgs ~®te t0 be PSStteri in t~P name ,^,~ the ~viaixty &ixu to ~c executed ~y tie rrrar-ual or facsimile signature of the Treasurer-Tax Collector and countersigned by the manual or facsimile signature of the Clerl~ cf the ~o~.~-d5 ~~~ as of the IssGe mate stated above. ~y Treasurer-Tax Collector Countersigned: Clerk of the Board of Supervisors Formo~ioteButteCO E. doc E~SSF~.S~ I~El`~'~` 1~ Qr ~.~a.lue rec; i d ed t se ~~~dersigraed i~ereb~ sails, assigns and transfers unto (Name, Address and Tax Identification or Social Security Number of Assignee) tl:e ~r ithin registered I~,Tote and 1-ereb~l irre~~ocal=l~ c~ sr.e it~r~~~ ~ gin: ~ ..~~~~w-A ~- ~°. - ..ter-;~.>__-.., «ttcarney, to tr~~sfer tl:e s«..~e ur, the Note register of the 1 reasu_rer-Tax Collector vaith full power of substitution in the premises. Dated: Signature: Signature Guaranteed: Note: The signature(s) on this Assignment must correspond with the name(s) as written on the face of the «~+;l~t Note in e-~ery par`eicular without alternation or enlargement or any change whatsoever. Note: Signature(s) must be guaranteed by a qualified guarantor. FornaofNodeB~atteC©E.doc ~'~~~'~ ~~' ~~~Tl~ ~€~lJ~i~iS~lJ ~t?x~'f~iV [llv 5~1~1 Vl 11VifJlyf Very truly yours, $Aff~'i~i%vpC~,, I~CJN~C~ & Sk~AN1~~IAN t~ Professional Corporation I ~l~B V Cl RTIF' ;' that she foregoing is a true and correct copy of the legal opinion upon the Notes therein described that was manually signed by ~3artkiewiez, i~ronick ~ Shanahan, and was dated as of the date of delivery of and payment for said Notes. Clerk ofthe hoard of Supervisors FormofNoteButteCOE. doc F.~F'~'~fTT FTTF~xi x.r,r~. ~~~r ~~~ ~ Lat`0 l r'~.~. RESOLUTION OE 'TILE BOARD OF EDUCATION OE T1IE CIIICO UNIFIED SCI~OOL DISTRICT ALT'TIIORIZING BORROWING WHEREAS, pursuant ±o Sections 53850, et seq., of the Government Code of the State of California (the "Act") contained in Article 7.6 thereof, entitled "Temporary Borrowing," on or after the first day of any fiscal year (being 3uly 1), the Chico Unified School District (the "District") may borrow money by issuing notes for any purpose for which the District is authorized to expend moneys, including, but not Limited to, cr~_r;-er+, ~xpA*_:ses, capital expenditures, and the discharge of any obligation or indebtedness of the District; and WHEREAS, this Board of Education (the "District Board"), being the governing board of the District, .hereby requests a loan of not to exceed Ten. Million Thousand Dollars ($10,000,000.00) at an interest rate not to exceed six percent (6`%) per annum (the "Loan") through the issue by the Board of Supervisors of the County of Butte (the "County") of 2007- 2008 Tax and Revenue Anticipation Note (the "TRANS") on behalf of the Butte County Office of Education (the "Office"), and to evidence such loan by execution of its note (the "Note")• a.~d WHEREAS, such Note is payable not later than fifteen months after the date of issue, and such Note shall be payable only from revenue received or accrued during the fiscal year 2007- 2008 in which issued; and WHEREAS, pursuant to Section 53856 of the Act, the District may pledge any taxes, income, revenue, cash receipts, or other moneys deposited in inactive or term deposits (but excepting certain. moneys encumbered for a special purpose) and this Resolution specifies that certain unrestricted revenues which will be received by the District for the General Fund of the District during or allocable to fiscal year 2007-2008 are pledged for. the payment of the Note; and WHEREAS, the Note shall be a general obligation of the District, and to the extent not paid from the taxes, income, revenue, cash receipts, and other moneys of the District pledged for the payment thereof shall be paid with interest thereon from any other moneys of the .District lawfully available therefor, as required by Section 53857 of the Act; and WHEREAS, the Note shall be issued on a date to be determined; and shall be in the form. and executed in the manner prescribed in this Resolution, as required by Section 53853 of the Act; and WHEREAS, the District Board has found and determined that said $10,000,000 maximum principal amount of Note, when added to the interest payable thereon, does not exceed eighty-five percent (85%) of the estimated amount of the uncollected taxes, income, revenue (including, but not Limited to, revenue from state and federal governments), cash receipts and other moneys of the District which will be available for the payment of the Note and interest thereon, as required by Section 53858 of the Act; and chicoRes-2007-08. DOC -., :.~,~ ix~~xaLi 1uUdJ'Q I1aS tQllnCt ar2c1 deterrnFdied `that the Nrlte t.~~~ll :.^t be iss'.:ed to finance a working capital resen~e and will be expended within the time period required as provided in the Income Tax Regulations of the United States Treasury; aF~d NOW, THEREFORE, the Board of Education of the Chico Unif?ed School ~'istri%t ??ereby reS:11VeS aS fO11owS: ` Section 1. Findings. All of the above recitals are true and correct and the District Board so finds and determines. Section 2. Authorization of Issuance of Note; Terr,^s Thor~~:r• n,~,;.,,, t Tz~~ r.,,_ -x5ixa~;i Hoard hereby authorizes the borrowing from the Office of an amount not to exceed $10,000,000.00 principal amount and the issuance of a Note under Sections 53850, et sect., of the Act, to be dated the date of delivery thereof; to mature (without option of prior redemption) and. t:o bear interest at the rate or rates as determined in accordance with the Issuance Resolution (defined below). Subject to Section 3 hereof, both the principal of and interest on the Note shall be payable in lawful money of the United States of America at the principal office of the Butte County Treasurer/Tax Collector, Oroville, California, which is hereby designated by this Board as the paying agent for the Note (the "Paying Agent"). Section 3. Form of Note. The Note shall be substantially in the form and substance set forth in Exhibit A attached hereto and by reference incorporated herein, the blanks in said form. to be filled in with appropriate words and figures. Section 4. Deposit of Loan Proceeds• No ArbitraF?e. The moneys so borrowed shall be initially deposited Fn the Treasury of the County in a proceeds fund to the credit of the Butte County Office of Education. and subsequently credited to the general find of the District concurrently with the delivery of the District Note. Such funds are to be withdrawn, used or expended by the District for any purpose for which it is authorized to invest or expend funds from the general fund of the District, including, but not limited to current expenses, capital expenditures or the discharge of any obligation of indebtedness of the District. Until used or expended, the mo.xeys aixajy be invested in investment securities by the County Treasurer directly, or through an investment agreement, in investments as permitted by applicable California law, anal meeting Standard and Poor's Ratings Services criteria for investments, or other investments approved by Standard and Poor's Rating Services including, but not limited to, investment in the Local Agency Investment Fund maintained by the Treasurer of the State of California. The District hereby covenants that it will make no use of the proceeds of the Note that would cause the Note to be "arbitrage bonds" under Section 148 of the Code; and, to that end, so long as the Note is outstanding, the District, and all of its officers having custody or control of such proceeds, shall comply with all requirements of (a) said section, including restrictions on the use and investment of proceeds of the Note and the rebate of a portion of investment earnings on certain amounts, including proceeds of the Note, if required, to the Federal government, and (b) of the Income Tax Regulations of the United States Treasury promulgated thereunder or any predecessor provisions, to the extent that such regulations are, at the time, applicable and in effect, so that; the Note will not be "arbitrage bonds." chicoRes-2007-08. D OC ,1f~C'.tl Ctrl ~ ~ac~n~an4 r.~Ri..to (A) Source of Payanent. The principal amount of the Note, together with the interest thereon, shall be payable from taxes, income, revenue, cash receipts, and other moneys which are received by the District during fiscal year 2007-2008 and which are available therefor. The Note shall. be a general obligation of file District, and, to the extent the Note is not paid from the Pledged Revenues defned belov~r, the Note shall be paid with interest thereon from any other moneys of the District lawfully available therefor, as provided herein and. by law. (B) Pledged Revenues. As security for the payment of the principal of and interest on the Note, the District hereby pledges an amount equal to the principal. amount of the Note from the unrestricted. revenues received by the District in the months designated. as deposit dates by the Butte County Superintendent of Schools (the "Superintendent") as provided in the resolution authorizing the issuance of the TR~4NS (the "Issuance Resolution"), plus an amount sufficient to pay interest on the Note, from unrestricted revenues received by the Superintendent (such pledged amounts being hereinafter called the "Pledged Revenues"). The term "unrestricted. revenues" shall mean taxes, income, revenue, cash receipts, and other money of the District as provided in Section 53856 of the Act, which are intended as receipts for the general fund of the District and which are generally available for the payment of current expenses and other obligations of the District. The principal of the Note and the interest thereon shall be a .first lien and charge against and shall be payable from the first moneys received by the District from such Pledged Revenues, as provided by law. In the event that there are insufficient unrestricted revenues received by the District to permit the deposit with the County Treasurer of the full amount of Pledged Revenues to be deposited from unrestricted revenues in a month, then the amount of any deficiency shall be satisfied and made up from any other moneys of the District lawfully available for the repayment of the Note and the interest thereon. (C) Covenant ReKardir~~ Addi ;anal Sliort-Term isorrovrin~. The District hereby covenants and warrants that it will not request the County Treasurer/Tax Collector (in such capacity, the "County Treasurer") to make temporary transfers of funds in the custody of the County Treasurer to meet any obligations of the District during the 2007-2008 fiscal. year pursuant to the authority of Article XVI, Section 6, of the Constitution of the State of California or any other legal authority. (D) Deposit of Pledged Revenues in Re~ayment Fund. The District shall deposit Pledged Revenues in the County treasury in a special fund designated as the "Chico Unified School District 2007-2008 Tax and Revenue Anticipation Note Repayment Fund," (herein called. the "Repayment Fund") established pursuant to the established pursuant to the resolution of the County Board authorizing the issuance of the TRANs (the "Issuance Resolution") and applied as directed in the Issuance Resolution. Airy moneys placed in the Repayment Fund shall be for the benefit of the holders of the Note, and until the Note and all interest thereon are paid or until. provision has been made for the payment of the Note at maturity with interest to maturity, the chi cones-2007-08. DOC tZ~nnPVC in tha T?Ar+o„w,o.,~ ~,-...t ,.t_,.tt t_. _ ,•_ - _ ~,. _ _ ._ y~u~iii~,nxc ~ ~;.i,u n~;ait uc (x~liiiGCA u~lly 0i Tlie ~rji,IrpOSeS IOr WYIIC~"2 the Repayment Fund iS Created, - (E) Disbursement of Moneys Deposited with Treasurer. From the date this :resolution takes effect, all Pledged Revenues shall, when received, be deposited in the Repayment Fund. to be held, ilavested anal accounted for as provided herein. After such date as the amount of Pledged Revenues deposited in the Repayment Fund shall be sufficient to pay in full the principal of and interest on the Promissory Note, when due, any moneys in excess of such amount remaining in or accruing to the Repayment Fund shall be transferred to the General Fund of the District upon the request of the District. (>n the maturity date of the Promissory Note, the moneys in the Repayment Fund shall be used, to the extent necess~l-y, to p?y the principal of a.d interest on the Promissory Note. In accordance with Government Code Section 53857, the District shall make up any deficiency from any other money of the District lawfully available for the payment of the Promissory Note ar~d tl~e interest thereon. Section fi. Execution of Noie. The Treasurer, or designated deputy thereof, is hereby authorized to sign the Note manually or by facsimile signature; the Clerk of the District Board (the "Clerk") to countersign the Note manually or by facsimile signature; and said officers to cause the blank spaces thereof to be filled in as may be appropriate. Section 7. General. All actions heretofore taken by the officers and agents of the District Board with respect to the Note are hereby approved, confirmed and ratified, and the officers of the District Board are hereby authorized and directed to do any and all things and take any and all actions which they, or any of them, may deem necessary or advisable in order to consummate the lawful issuance and delivery of the Note in accordance with this Resolution. Section 8. Further Actions Authorized. It is hereby covenanted that the District Board, and its appropriate officials, have duly taken. all proceedings necessary to be taken. by them, and will. take any additional proceedings necessary to be taken by them, for the levy, collection and enforcement of the secured property taxes pledged under this Resolution in accordance with the law anal for carrying out the provisions of this Resolution and the Issuance Resolution. Section 9. Covenants. The District Board and its officers, agents and employees hereby covenant to comply with the liens of this Resolution and the Issuance Resolt.Ition. Section 10. Transmittal of Resolution. The Clerk is hereby directed to send a certified copy of this Resolution to the County Board, t11e Treasurer and the County Superintendent of Schools. chicoRes-2007-08.DOC PA SSF.T) Q ~Tr~ n r~,~~Tr ~, ,_ ., -'-`••f h,"~f ~y ~lrc 15Ga1°O QI -"C$'~tCatZC3ri of iiic C111C0 ~lJtllfierl Crhn01 I>?str~ct tha 1Sth day of August, Zi107, by the following vote: AYES: I~(~ES: ABSENT: .~.~~5:: Kelly Staley, Secretary of the Board of Education, Chico U_nifi_ed School district President, Board of Education Chico Unified School l~icr~-zet chic ones-2007-08. D OC E~:~i~i~~~i' !$ [~"I"~ ~.Ir' ~PECIIVIEN NOTE OF ~~~~'O LJS~2] FC?RI~~I C}F ~?O'FE (3ti_T~'~'~ Cf)ol<.TN'I'Y, C:~I.IFf~I~lyiwAj X007-2008 'fi'A% AID R~VLl\'UE ~;.I~T~CIPAT'><®l~T 1`ed0'l'~ Date: ~_ , 2007 FOR. VALUE RECEIVED, CI-IiCO UNIFIED SCHOOL DISTP.ICT, Butte County, State of California (the "District") acknowledges itself indebted, and promises to pay, to the Butte County Board of Education (the "BCBOF,"), at the Office of the Treasurer and Tax. Collector of the County of Butte, the principal s~,!m of -~f3L,;l„q>t~S In lawful money of the United States of America, on ___ , 2007 toget_h_er with. interest thereon at the rate of per annum, in like lawful money of the United Sates of America from the date hereof until payment in fi~L1 of said principal sum. it is hereby certified, recited and declared that this Note is made, executed and given pursuant to the provisions of a resolution of the Board of Supervisors (the ".Board") of Butte County (the "County") duly passed and adopted on August 28, 2007, and a resolution of the District duly passed and adopted on August 15, 2007 under and by authority of Article 7.6 (commencing with section 53850) of Chapter 4, Part 1, Division 2, Title 5, of the California Government Code, and that all conditions, things and acts required to exist, happen and be performed precedent to and in the issuance of this Note exist, have happened and have been performed in regular and due time, form and manner as required by law, and that this Note, together with all other indebtedness and obligations of the District, does not exceed any limit prescribed by the Constitution ar statutes of the State of California. The principal amount of the Notes, together with the interest thereon, shall be payable only from taxes, revenue and other moneys that are received by the District during fiscal year 2007-2048. As security for the payment of the principal of and interest on the Notes, the District has pledged the first "unrestricted revenues", as hereinafter defined, (a) in an amount equal to twenty-five percent (25%) of the principal amount of the Notes from the unrestricted revenues received by the District in the month of , 2008, (b) in an amount equal to twenty-fve percent (25%) of the principal. amount of the Notes from the unrestricted revenues received by the District in the month of _ , 2008, (c) in an amount equal to twenty-five percent (25%) of the principal amount of the Notes from the unrestricted revenues received by the District in the month of , 2008, and (d) in an amount equal to twenty-five percent (25%) of the principal amount of the Notes, plus an amount sufficient to pay interest on the Notes, from unrestricted revenues received by the District in the month of _, 2008, (such pledged amounts being hereinafter called the "Pledged District Revenues"); and the principal. of the Notes and the interest thereon. shall constitute a first lien. and charge against and shall be payable from the first money received. by the District from such Pledged District Revenues, and to the extent not so Maid shall be fad fiodri any ether moneys of the District lawfully available therefor, The tens L6FFY:YLi G~S'YE."*S'GAL r,iAV ..~. «.nn....» ._E._.-EY _ NN ~-__. ... -..' ~.",„ .LL W ~ ~c~,.v:, u4sGi.li k'vCx.4Y L.fxli~u'.~, YA4W.~lkYG, LG~V ~krt.t~: c`iwiQ ~~~.~iCt S'YM!)7(Mv~7(~` ~:~~.P.:Z.'~.v~Y u..Fi r~(~ieapts u~r a av ~G6.iGYCCt f~r~~i Uf ~;he ~rrzce a~ca t~i~~icn are genezally available for tl*~e payn~er€t of curretlt expe~se5 and otl«er obligatie~rs oftl~e ~'ce. IN ~J+~I'I'I~11/SS ~~ERE®F, the board of Supervisors of Butte County, California has c~.~sed tt.s ;~vo:e to be issued im file name of the County and to be executed by the manual or facsimile s_gn~ture of the ~'reasurer-'fay; Collector add countersigned by the manual or facsimile signature of the Clerk of the Board, all as of the Issue Date stated above. By 'I'rewslwrer-Tax Collector Co„nters~g::ed: Cleric of the Board of Supervisors CncoFortnNote.DOC; ~l/+ l,R~+,TE3.~C~! s~ ClEIZ~'>FIiC~ITE Certified Copy of P.esolution Adopted. on August 15th, 2007 I, Kelly Staley, hereby certify that I am the Superintendent and Secretary of the Board of Education of the Chico Unified School District (the "District"), school district organized and existing under and by virhie of the Constitution and laws of the State of California and that as such I am authorized to execute this Certificate on behwi foftl;e Li~tri:,t I hereby further certify that attached hereto is a complete copy of a resolution which was duly adopted by the Board of Education of the District at a meeting thereof which was duly called and held on August 15th, 2007, and. at such meeting a quorum was present and acting throughout, and That said resolution has not been amended, modified or rescinded since the date of adoption and is now in full force and effect. Dated: [closing date], 2007. CHICO UNIFIED SCHOOL DISTRICT By: Kelly Staley, Superintendent R1JS0)!`.U~'1ON NEB. ~SOf.rJTkOiW OE Y>i~E, F5OA.i~ Ol~' f't`1S1~I~I:S ~2F' ii~E. ~'"A,i~l!~ilS~: f!JNIi~+"1!1":11' S~;l[E~O>i. DIS TAG"I' t~,UTHORIZIl\'G BdRRf3~'il~'G ~~THEREAS, pursuant to Sections 53850, et sea., of the Goverlment Code of the State of California (the "Act") contained in Article 7.6 thereof, entitled "Temporary Borrovjing," o~? or after the first day of any fiscal year (being July 1), the Paradise Unif ed School District (the "District") may borrow money by issuing notes for any purpose for which the District is authorized to expend moneys, including, but not limited to, current expenses, capital expenditures, and the discharge of any obligation or indebtedness of the District; and WHEREAS. this Board of Tn ct ~ ~rhP °° ,'Cr,-; r ~~.~a ~a~~~ ~. .,,~ ~~.~ ~-.. --:__ Ti"_ ee"_ ~____ ~_~,_.C, .".,kru ;, ,; ...b ,.f., 5~vvciiiiiig uioli"ii ~3i the District, hereby reoluests a loan of not to exceed Five Million Dollars ($5,000,000.00) at an interest rate not to exceed. six percent (6%) per annum (the "Loan") through the issue by the Bcar d of Super visors of the County of Butte (the "County") of 2007-2008 Tax. and Revenue Anticipation Note (the "TRANS") on behalf of the Butte County Office of Education (the "Office"), and to evidence such loan by execution of its note (the "Note")• and WHEREAS, such Note is payable not later than fifteen months after the date of issue, and such Note shall be payable only from revenue received or aGCrued during the fiscal year 2007- 2008 in which issued; and WHEREAS, pursuant to Section 53856 of the Act, the District may pledge any taxes, income, revenue, cash receipts, or other moneys deposited in inactive or term deposits (but excepting certain moneys encumbered for a special purpose) and this Resolution specifies that certain unrestricted revenues which. will be received by the District for the General. Fund. of the District during or allocable to fiscal year 2007-2008 are pledged for the payment of the Note; and WHEREAS, the Note shall be a general obligation of the .District, and to the extent not paid from the taxes, income, revenue, cash receipts, and other moneys of the District pledged for the payment thereof shall be paid with. interest thereon from any other moneys of the District lawfully available therefor, as required by Section 53857 of the Act; and WHEREAS, the Note shall be issued on a date to be determined; and shall. be in the forn~ and executed in the manner prescribed in this Resolution, as required by Section 53853 of the Act; and WHEREAS, the District Board has found and determined that said $5,000,000.00 maximum principal amount of Note, when added to the interest payable thereon, does not exceed eighty-five percent (85%) of the estimated amount of the uncollected taxes, income, revenue (including, but not limited to, revenue from state and federal governments), cash receipts and other moneys of the District which will be available for the payment of the Note and interest thereon, as required by Section 53858 of the Act; and WHEREAS, The District Board. has found and determined trat the Note will not be issued to finance a working capital reserve and will be expended within the time period required as provided in the Income Tax Regulations of the United States Treasury; and N:~-t~J, 'THEREFORE, the Board of Tn:stees of tl~e Paradise U~~if ed School District i~ereby resolves as follows: 656157.1 [9932,_) Section 1. Findin s. All of the above recitals are tl-oe a~~d correct and tl~e District Board so finds and determines. ~.~~«vri ~. n.uuxvxt<,atxutx ilx ibJUatil;G Ui 1'VC~LL' TerY11S t 11ere0Y' YaYlll~ f~.~• Y'C1,P sirict Board hereby authorizes the borrowing from the Office of an amount not to exceed $5,000,000.00 principal amount and the issuance of a Note under Sections 53850, et seq., of the Act, to be dated the date of delivery thereof; to mature (without option of prior redemption) and to bear interest at the rate or rates as determined in accordance with the Issuance Resolution (defined below). Subject to Section 3 hereof; both the principal of and interest on the Note shall be payable in lawful money of the United States of America at the principal office of the Butte County Treasurer/Tax Collector, Oroville, California, which is hereby designated by this Board as the paying agent for the Note (the "Paying Agent"). Section 3. Form of Note. The Note shall be substantially in th.e ford arld s~ibsta!~ce se± forth in Exhibit A attached hereto and by reference incorporated herein, the blanks in said form to be filled in with appropriate words and figures. Section 4. Deposit of Loan Proceeds; No Arbitrage. The moneys so borrowed shall be initiaiiy deposited in the Treasury of the County in a proceeds fund to the credit of the Butte County Office of Education and subsequently credited to the general fund of the District concurrently with the delivery of the District Note. Such funds are to be withdrawn, used or expended by the District for any purpose for which it is authorized to invest or expend funds from the general fund of the District, including, but not limited to current expenses, capital expenditures or the discharge of any obligation of indebtedness of the District. Until used or expended, the moneys may be invested. in investment securities by the County Treasurer directly, or through. an investment agreement, in investments as permitted by applicable California law, and meeting Standard and Poor's Ratings Services criteria for investments, or other investments approved by Standard and Poor's Rating Services including, but not limited to, investment in the Local Agency Investment Fund maintained by the Treasurer of the State of California, The District hereby covenants that it will make no use of the proceeds of the Note that would cause the Note to be "arbitrage bonds" under Section 148 of the Code; and, to that end, so long as the Note is outstanding, the District, and all of its officers having custody or control of such proceeds, shall comply with all requirements of (a) said section, including restrictions on the use and investment of proceeds of the Note and the rebate of a portion of investment earnings on certain amounts, including proceeds of the Note, if required, to the Federal govel-nment, and (b) of the Income Tax Regulations of the United States Treasury promulgated thereunder or any predecessor provisions, to the extent that such regulations are, at the time, applicable and in effect, so that the Note will not be "arbitrage bonds." Section 5. Payment of Note. (A) Source of Payment. The principal amount of the Note, together with the interest thereon, shall be payable from taxes, income, revenue, cash receipts, and other moneys which are received by the District during fiscal year 2007-2008 and which arc available therefor. The Note shall be a general obligation of the District, and, to the exterxt the Note is not paid from the Pledged Revenues defined below, the Note shall be paid with interest thereon from any other moneys of the District lawfully available therefor, as provided herein and by Iaw. (B) Pledged Revenues. As security for the payment of the principal of and interest on the Note, t~'le l~lStrlct herPh~~ niPricrPC an amn,wnt ern,al t~ the *+r.nC.141 '^'' * ~+kn rT"`" F ~ x'-"a"" `g •^•~•• Y Yua uixi~'iuu~ vi LxxV LV Vl,Ir Z1Vd11 the unrestricted revenues received by the District in the months designated as deposi± dates by the Butte County Superintendent of Schools (the "Superintendent") as provided in the resolution 656157.1 [9932.`] authorizing the issuance of the TRANS (the "Issuance .Resolution"), plus an amount suffcicnt to pay interest on the Note, from unrestricted revenues received by the Superintendent (such Nledged a.r~;,u~its vcili~ licrer~after caned the `~Pieclgeci 1Zevenues"). The term "unrestricted ;'C'vCiucS" Si";viii tiGaii ta1~eS, iTICOII7E, rC~lClilie, CaS!i reCelptS, and Caller til0ney of the DIStrICt aS provided in Section X3856 of the Act, which are intended as receipts for the general fund of the District and which are generally available for the payrrlent of current expenses and other obligations .^,f the District. The principal of the Note and the interest thereon shall be a first lien and charge against ar~d shall be payable from the first moneys received by the District from such Pledged Revenues, as provided by law. In the event that there are insufficient unrestricted revenues received by the District to peniiit the deposit with. the County Treasurer of the full amol,?nt of Pler~g ed Rp~,en,~.es ~o by deposited from unrestricted revenues in a month, then the amount of any deficiency shall be satisfied and made up from any other moneys of the District lawfully available for the repayment of the I~TOte and the interest thereon. (C) Covenant Re~ardin~ Additional Short-Term Borrowing. The District hereby covenants and warrants that it will not request the County Treasurer/Tax Collector (in such capacity, the "County Treasurer") to make temporary transfers of funds in the custody of the County Treasurer to meet any obligations of the District during the 2007-2008 fiscal year pursuant to the authority of Article XVI, Section 6, of the Constitution of the State of California or any other legal authority. (D) Deposit of Pledged Revenues in Repayment Fund. The District shall deposit Pledged Revenues in the County treasury in a special fund designated as the "Paradise Unified School District 2007-2008 Tax and Revenue Anticipation Note Repayment Fund," (herein called the "Repayment Fund") established pursuant to the established pursuant to the resolution of the County Board authorizing the issuance of the TRANS (the "issuance Resolution") and applied as directed in the Issuance Resolution. Any moneys placed in the Repayment Fund shall be for the benefit of the holders of the Note, and until the Note and all interest thereon are paid or until provision has been made for the payment of the Note at maturity with interest to maturity, the moneys in the Repayment Fund shall be applied only for the purposes for which the Repayment Furd is created. (E) Disbursement of Moneys Deposited with Treasurer. From the date this Resolution takes effect, all Pledged Revenues shall, when received, be deposited in the Repayment Fund to be held, invested and accounted for as provided herein. After such. date as the amount of Pledged Revenues deposited in the Repayment Fund shall be suff cient to pay in full the principal of and interest on the Promissory Note, when due, any moneys in excess of such amount remaining in or accruing to the Repayment Fund shall be transferred to the General Fund of the District upon the request of the District. On the maturity date of the Promissory Note, the moneys in the Repayment Fund shall he used, to the extent necessary, to pay the principal of and interest on the Promissory Note. In accordance ~~,~ith Go~c>ernment Code Section 53857, the District shall make up any deficiency from. any other moliey of the District Lawfully available for the payment of the Promissory Note and the interest tl-iereon. Section 6. Execution of Note. The Treasurer, or designated deputy thereof, is hereby authorized to sign the Note manually or by facsimile ~;n„a~,,,-P• tl:e Clerl; ^~ +~~ '-';^+_;~+ "-~•.-' __a__... _.,.a ,,, vi tia~ BJ aJU_1.,1 LYVQl It (the "Clerk") to eoulitersigli the Note nanually or by facsimile signature; and said officers to cause the blank spaces thereof to be filled in as may be appropriate. 656157.1 [9932.__] Section 7. General. ill actions heretofore taken by the officers and agents of the District Board with respect to the Notre are hereby approved, confirmed and ratifi.ed., an,d rl,e officers oft ~ BistriC Board are hereby authorized and directed to do any and all thinQ-c anal rat,P any r..~d all actio~,s ;~ii;ci~ trey, or any of them, may deem necessary or advisable : <3rder to consummate the lawful issuance and delivery of the Irlote in accordance with this Resolution. Section 8. Further Actions Authorized. It is hereby covenanted that the District Board, and its appropriate officials, have duly taken all proceedings necessary to be talzen by them, and will take any additional proceedings necessary to be taken by them, for the levy, collection and enforcement of the secured property taxes pledged under this Resolution in accordance with the law and for carrying out the provisions of this Resolution and the Issuance Resolution. Section 9. Covenants. The District Board and its officers, agent and employees hereby covenant to comply with the liens of this Resolit=_en ariw t?:e :ss;a~~c~ Resolution. Section 10. Transmittal of Resolution. The Clerk is hereby directed to send a certified copy of this Resol~.:tion to the Counyy Board, the .Treasurer and the County Superintendent of Schools. PASSED AND ADOPTED by the Board of Trustees of the Paradise Unified School District this 21st day of August, 2007, by the following vote: AYES: NOES: ABSENT: Attest: Clerk, Board of Trustees Paradise Unified School District President, Board of Trustees Paradise Unified School District 656157,1 [9932._] ~~~~~~ 656157.1 [9932._) FC~RI~ OF NOTE PA.I~DISL 1!;J1V}FTI"rl~ ~~~n~A ~F~~~r~~ (BUTTE- C'Ol:I1~';<'~, C'Al<.,~li;'~R1~IA) 2007-2008 TAB AND RE~J>/N><Tl/ AledTi'1rC'IPA'I'1!®l~ I!r®TE Date: _ ______, 2007 FOR VALUE RECEIVED, PARADISE UNIFIED SCHOOL DISTRICT, Butte County, State of California (the "District") acknowledges itself indebted, and promises to pay, to the Butte County Board of :Education (the "BCBOE"), at the Office of the Treasurer and Tax. Collector of the County of Butte, the principal sum of I~El1ulL.~.~S In lawful money of the United. States of America, on _ , 2007 together with interest thereon at the rate of - PERCENT L.~%) per annum, in like lawful money of the United Sates of America from the date hereof until payment in full of said principal sum. It is hereby certified, recited and declared that this Note is made, executed and given pursuant to the provisions of a resolution of the Board of Supervisors (the "Board") of Butte County (tree "County") duly passed and adopted on August 28, 2007, and a resolution of the District duly passed and adopted on August 21, 2007 under and by authority of Article 7.6 (commencing with section 53850) of Chapter 4, Part 1, Division 2, Title 5, of the California Government Code, and that all conditions, things and acts required. to exist, happen anal be performed precedent to and in the issuance of this Note exist, have happened and have been. perfornied in regular anal due time, form and manner as required by law, and that this Note, together with. all other indebtedness and obligations of the District, does not exceed any limit prescribed by the Constitution or statutes of the State of California. Trio principal amount of the Notes, together with the interest thereon, shall be payable only from taxes, revenue and other moneys that are received by the District during fiscal year 2007-2008. As security for the payment of the principal of and interest on the Notes, the District has pledged the first "unrestricted revenues", as hereinafter defined, (a) in an amount equal to twenty-five percent (25%) of the principal amount of the Notes from the unrestricted revenues received by the District in the month of , 2008, (b) in an amount equal to twenty-five percent (25%) of the principal amount of the Notes from the unrestricted revenues received by the District in the month of , 2008, (c) in an amount equal to twenty-five percent (25%) of the principal amount of the Notes from the unrestricted revenues received by the District in the month of _ , 2008, and (d) in an amount equal to twenty-five percent (25%) of the principal amount of the Notes, plus an amount sufficient to pay interest on the Notes, from unrestricted revenues received by the District in the month of __, 2008, (such pledged amounts being hereinafter called ±he "Pledged. District Revenues"); and. the principal of the Notes and the interest thereon shall constitute a first lien and charge against and shall be payable from the first money received by the District from such Pledged District Revenues, and to the extent not so paid shall. be paid from any other :::oneys cf the District lawfully available therefor. The term ~B ~Y ~~ c ~i~ 1 9T~~~ "t~nrestr~cted rever~~r~c" ~h~FF ~~.~n ~~[,~/ , Y~VyrYr. Y~.V~.YY~~ a~L=4 0_ r~vr ~ ~ **P , ~ ~ro..,,~ s trte~rded ~s ~~eceipts for the geF~e~-a~ f~~d of t~a~, C~,v~ a~~i r~:~ieb are generaiiy a~ai~~ble for tk~e iaayent of eu~-ent expenses and other obligations ofthe ®f~ce. ~1~1 i~ll'1'1~r~SS ~JVHEIZE®F, the Board of Supervisors of Butte County, C~~if®rnia hac caGcea. this ?~?c*e tc be iss~eu iii tlic tYaine of the County and to be executed by the manual or facsimile signature of the ~'reas~?rer-Tax Coll;,;,t:,r and countersigned by the manual or facsimile signature of the Clerk of the Board, alt as of the issue Date stated above. CQo 'l~'`3I ~~+' BI;J'd'T~ C~~TI~d°~r' By `l'reastir@r-'f'ax C^:lev or Countersigned: v ~xx~; xytyp,j u Va ~u~7~rV1SOCS PazadiseFormNote.DOC