HomeMy WebLinkAbout08-039Resolution
A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE
COUNTY OF BUTTE, CALIFORNIA, AUTHORIZING THE
ISSUANCE AND SALE OF CHICO UNIFIED SCHOOL DISTRICT
ELECTION OF 1998 GENERAL OBLIGATION BONDS, SERIES B,
IN AN AGGREGATE PRINCIPAL AMOUNT OF NOT TO
EXCEED THIRTY MILLION SEVEN HUNDRED TWENTY-FIVE
THOUSAND DOLLARS {$30,725,000).
WHEREAS, a duly called election was held in the Chico Unified School
District (the ``District'), Butte County (the "County""), State of California on April 14, 1998
(the "Election'') and thereafter canvassed pursuant to law;
WHEREAS, at such election there was submitted to and approved by the
requisite vote of two-thirds or more of the qualified electors of the District a question as to the
issuance and sale of general obligation bonds of the District for various purposes set forth in
the ballot submitted to the voters, in the maximum principal amount of $48,725,000 payable
from the levy of an cad valorem tax against the taxable property in the District (the
"Authorization");
WHEREAS, on August 13, 1998, the Board of Supervisors of the County of
Butte (the ``County Board") issued on behalf of the District the first series of bonds under the
Authorization in an aggregate principal amount of $18,000,000, styled as "Chico Unified
School District (Butte County, California) Election of 1998 General Obligation Bonds, Series
A" (the '`Series A Bonds"};
WHEREAS, the County Board has received a resolution (the "District
Resolution''} adopted by the Board of Education of the District (the "District Board") which
requests the County Board to issue the second and final series of bonds under the
Authorization in an aggregate principal amount of not to exceed $30,725,000 to be styled as
"Chico Unified School District (Butte County. California) Election of 1998 General
Obligation Bonds, Series B" (the "Bonds'') on behalf of the District;
WHEREAS, pursuant to Chapter 1 of Part 10 of Division 1 of Title 1
{commencing with Section 15100 et secy.) of the California Education Code (the "Act'), bonds
are authorized to be issued for the purposes set forth in the ballot submitted to voters; and
WHEREAS, all acts. conditions and things required by law to be done or
performed have been done and performed in strict conformity with the laws authorizing the
issuance of general obligation bonds of the District, and the indebtedness of the District,
including this proposed issue of Bonds, is within all limits prescribed by law:
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF
SUPERVISORS OF THE COUNTY OF BUTTE, CALIFORNIA, AS FOLLOWS:
SECTION 1. Purpose of Bonds. To raise money for the purposes authorized
by voters of the District at the Election, and to pay all necessary legal, financial, engineering
and contingent costs in connection therewith, the County authorizes the issuance of the Bonds
in the name of the District and orders such Bonds sold at a competitive sale such that the
Bonds shall be dated as of a date to be determined by the County Board, shall bear interest at a
rate not to exceed that authorized at the Election, shall be payable upon such terms and
provisions as shall be set forth in the Bands, and shall be in an aggregate principal amount not
to exceed $30,725,000.
SECTION 2. Bond Registrar. This County Board does hereby consent to
and confirm the appointment of The Bank of New York Trust Company, N.A., as
authenticating agent, bond registrar, transfer agent and paying agent (collectively, the "Bond
Registrar"'} for the Bands by the District.
SECTION 3. Terms and Conditions of Sale; Notices Inviting Proposals.
The Bonds shall be sold at a competitive sale upon the direction of the Superintendent of the
District (the ``Superintendent') or the Assistant Superintendent, Business Services of the
District (the ``Assistant Superintendent.'" and together with the Superintendent, the
"Authorized Officers"). The invitation for bids for the purchase of the Bonds is hereby
authorized, such invitation to be substantially in accordance with the Notices Inviting
Proposals For Purchase of Bonds, together with Bid forms, attached hereto as Exhibits A and
B, and by this reference incorporated herein (the '`Notices Inviting Proposals").
The County Board consents to the Authorized Officers executing the Notices of
intention to Sell Bonds attached hereto as Exhibit C (the "Notices of Intention"} and to such
Authorized Officers causing the Notices of Intention to be published once at least five (5} days
prior to the date set to receive bids in The Bond Buyer.
The terms and conditions of the offering and the sale of the Bonds shall be as
specified in the Notices Inviting Proposals. The Treasurer (defined herein), in conjunction
with the District, shall award the sale of the Bonds by acceptance of the bids with the lowest
true interest cost with respect to the Bonds, so long as the principal amount of the Bonds does
not exceed $30,725,000. and the true interest cost on the Bonds does not exceed that
authorized at the Election..
Stone & Youngberg LLC, the financial advisor to the District (the `°Financial
advisor'"), is hereby authorized and directed to cause to be furnished to prospective bidders a
reasonable number of copies of the Notices Inviting Proposals and a reasonable number of
copies of the Official Statement.
The Board hereby approves the competitive sale of the Bonds, having
determined that a competitive sale contributes to the District's goal of achieving the lowest
overall cost of funds, The Board estimates that the costs associated with the issuance of the
Bonds, including compensation to the Financial advisor and the successful bidder or bidders,
and any such costs which the successful bidder or bidders agrees to pay pursuant to the Notice
Im~iting Proposals, will equal approximately 3.0% of the principal amount of the Bonds.
"i`he Financial Advisor andlor Stradling Yocca Carlson & Rauth, a Professional
Corporation, San Francisco, California {"Bond Counsel"), are hereby authorized and directed
to open the bids at the time and place specified in the Notices Inviting Proposals and to present
the same to the Superintendent or Assistant Superintendent. The Financial Advisor andlor
Bond Counsel are hereby authorized and directed to receive and record the receipt of all bids
made pursuant to the Notices Inviting Proposals: to cause said bids to be examined for
compliance with the Notices Inviting Proposals; and to cause computations to be made as to
which bidder has bid the lowest true interest cost with respect to the Bonds, as provided in the
Notices Inviting Proposals, along with a report as to the foregoing and any other matters
deemed pertinent to the award of the Bonds and the proceedings for the issuance thereof.
SECTION 4. Certain Definitions. As used in this Resolution. the terms set
forth below shall have the meanings ascribed to them (unless otherwise set forth m the Official
Statement):
(a} "Accreted Interest" means, with respect to the Capital Appreciation
Bands, the Accreted Value thereof minus the Denominational ~maunt thereof as of the
date of calculation.
(b) "Accreted Value" means with respect to the Capital Appreciation Bands.
as of the date of calculation, the Denominational Amount thereof, plus Accreted
Interest thereon to such date of calculation, compounded semiannually on each
February 1 and August 1 (commencing an August 1, 200& (unless otherwise provided
in the Official Statement)) at the stated Accretion Rate to maturity thereof, assuming in
any such semiannual period that such Accreted Value increases in equal daily amounts
on the basis of a 360-day _year of twelve 34-day months.
(c) "Accretion Rate" means, unless otherwise provided by the Official
Statement, that rate which, when applied to the Denominational Amount of any Capital
Appreciation Bond and compounded semiannually on each February 1 and August 1
(commencing on August 1, 2008), produces the Maturity Value on the maturity date.
(d) "Bond Insurer" means any insurance company which issues a municipal
bond insurance policy insuring the payment of Principal and Maturity Value of and
interest on the Bonds when. due.
(e) "Band Payment Date" means (unless otherwise provided by the Official
Statement), with respect to the Current Interest Bonds, February 1 and August 1 of
each year commencing August I, 200$ with respect to the interest on the Current
Interest Bonds and August 1, of each year commencing August 1, 2008 with respect to
the principal payments on the Current Interest Bands, and, with respect to the Capital
Appreciation Bonds, the stated maturity dates thereaf, as applicable.
(f) `Bond Registrar" means The Bank of New York Trust Company, N.A., or
any successor thereto, ar any such other band registrar designated in the Official
Statement, acting in the capacity of Paying Agent, registrar, authenticating agent and
transfer agent.
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(g} "Capital Appreciation Bonds" means the Bonds the interest component of
which is compounded semiannually on each Bond Payment Date to maturity as shown
in the table of Accreted Value for such Bonds in the Official Statement.
(h) "Continuing Disclosure Certificate" means that certain Continuing
Disclosure Certificate executed by the District and dated the date of issuance and
delivery of the Bonds, as originally executed and as it may be amended from time to
time in accordance with the terms thereof.
(i} "Current Interest Bonds" means the Bonds the interest on which is
payable semiannually on each Bond Payment Date specified for each such Bond as
designated and maturing in the years and in the amounts set forth in the Official
Statement.
(j) "Denominational Amount" means, with respect to the Capital
Appreciation Bonds, the initial principal amount thereof, and, with respect to the
Current Interest Bonds, the principal amount thereof.
(k) "Depository" means the securities depository acting as Depository
pursuant to Section 5{c) hereof.
(1) "DTC" means The Depository Trust Company, New York, New York, a
limited purpose trust company organized under the laws of the State of New York, in
its capacity as securities depository for the Bonds.
(m)"Information Services" means Financial Information, Inc.'s Financial
Daily Called Bond Service; Moody's Municipal and Government Called Band Record;
or Standard & Poor's J. J. Kenny Information Services Called Bond Service.
(n) "Maturity Value" means the Accreted Value of any Capital Appreciation
Bond an its maturity date.
{o) "Nominee" means the nominee of the Depository, which may be the
Depository, as determined tram time to time pursuant to Section 5(c) hereof.
(p) "owner" means the registered owner of a Bond as set forth on the
registration books maintained by the Paying Agent pursuant to Section 7 hereof.
(q) "Participants" means those broker-dealers, banks and other financial
institutions from time to time for which the Depositary holds book-entry certificates as
securities depository.
(r) "Principal" or "Principal Amount" means, with respect to any Current
Interest Bond, the principal or principal amount thereof and. with respect to any
Capital Appreciation Band, the Denominational Amount.
(s) "Record Date" means, with respect to the Current Interest Bonds, the close
of business on the fifteenth. day of the month preceding each Bond Payment Date.
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(t) "Securities Depositories" means The Depository Trust Company, 55
Vdater Street, New York, New York 14041, Tel: (212} 855-1000 or Fax: (212) 855-
7320.
(u) "Term Bonds" means those Bonds for which mandatory redemption dates
have been established in the Notices Inviting Proposals or the Official Statement.
(v) "Transfer Amount" means,
Interest Bond, the Principal Amount and
Bond,. the Maturity Value.
with respect to any Outstanding Current
with respect to any Capital Appreciation
(w) "Treasurer" means the "Treasurer-Tax Collector of the County of Butte ar
any authorized deputy thereof.
SECTION 5. Terms of the Bonds. (a) Denomination Interest Dated Dates.
'The Bonds shall be issued as any combination of Current Interest Bonds and Capital
Appreciation Bonds registered as to both principal and interest, in the denominations of, with
respect to the Current Interest Bonds, Five Thousand Dollars ($5,000) Principal Amount or
any integral multiple thereof {except for one odd denomination), and with respect to the
Capital Appreciation Bonds, Five Thousand Dollars ($5,000) Maturity Value, or any integral
multiple thereof (except for one odd denomination, if necessary}. `The Bonds will initially be
registered to "Cede & Co.,'' the nominee of DTC.
Each Capital Appreciation Bond shall be dated, and shall accrete interest from,
its date of initial issuance unless otherwise set forth in the Official Statement. Capital
Appreciation Bonds will not bear interest on a current basis.
Each Current Interest Bond shall be dated its date of delivery or such date as
shall appear in the Official Statement (the "Dated Date''), and shall bear interest from the
Bond Payment Date next preceding the date of authentication thereof unless it is authenticated
as of a day during the period from the 15th day of the month next preceding any Bond
Payment Date to that $ond Payment Date, inclusive, in which event it shall bear interest from
such Bond Payment Date, or unless it is authenticated on or before July 15, 2008, in which
event it shall bear interest from the Dated Date. Interest on the Current Interest Bonds shall be
calculated on the basis of a 360-day year of twelve 30-day months.
The Bonds shall bear interest or accrete interest at a rate or rates such that the
interest rates or true interest cost shall not exceed the maximum rate permitted by law.
Interest shall be payable on the respective Bond Payment Dates.
The Capital Appreciation Bonds be dated the date of the initial delivery of such
Bonds and shall mature in the years and shall be issued in the aggregate Denominational
Amount set forth in the Official Statement (defined herein) and shall compound interest at the
Accretion Rates and shall have Denominational Amounts per each five thousand. dollars
($5,000) in Maturity Value as shown in the Accreted Value Table attached to the Official
Statement; provided, that in the event that the amount shown in such Accreted Value Table
and the Accreted Value caused to be calculated by the District and approved by the Bond
Insurer by application of the definition of Accreted Value set forth in Section 4 differ, the
latter amount shall be the Accreted Value of such Capital Appreciation Bond.
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(b) Redemption.
(i) Optional Redemption. The Bonds shall be subject to optional redemption
prior to their stated maturity dates as provided in the Official Statement.
(ii) Mandatory Redemption. Unless otherwise provided for in the C~ffieial
Statement, any Bonds sold as Term Bonds shall be subject to mandatory redemption from
monies in the Debt Service Fund established in Section 11 hereof prior to their stated maturity
date. at the Principal Amount or Accreted Value thereof. as applicable. without premium on
each August 1. in the years and in the amounts as set forth in the Official Statement.
(iii)Selection of Bonds for Redemption. Whenever provision is made in this
Resolution for the optional redemption of Bonds and less than all C)utstanding Bonds are to be
redeemed, the Bond Registrar identified below, upon written instruction from the District,
shall select Bonds for redemption as so directed and if not directed, in inverse order of
maturity. Within a maturity, the Bond Registrar shall select Bonds for redemption by lot.
Redemption by lot shall be in such manner as the Bond Registrar shall determine; provided,
however, that the portion of any Current Interest Bond to be redeemed in part shall be in the
Principal Amount of $5,000 or any integral multiple thereof and the portion of any Capital
Appreciation Bond to be redeemed in part shall be in integral multiples of the Accreted Value
per $5,000 Maturity Value thereof.
(iv)Notice of Redemption. When redemption is authorized or required
pursuant to this resolution, the Bond Registrar, upon written instruction from the District, shall
give notice (a ``Redemption Notice") of the redemption of the Bonds. Such Redemption
Notice shall specify: the Bonds or designated portions thereof (in the case of redemption of the
Bonds in part but not in whole} which are to be redeemed, the date of redemption, the place or
places where the redemption will be made, including the name and address of the Bond
Registrar, the redemption price. the CUSIP numbers (if any) assigned to the Bonds to be
redeemed, the Bond numbers of the Bonds to be redeemed in whole or in part and, in the case
of any Bond to be redeemed in part only, the Principal Amount of such Bond to be redeemed,
and the original issue date, interest rate or Accretion Rate and stated maturity date of each
Bond to be redeemed in whole or in part. Such Redemption Notice shall further state that on
the specified date there shall become due and payable upon each Bond or portion thereof
being redeemed. the redemption price thereof_ together with the interest accrued or accreted to
the redemption date, and that from and after such date, interest with respect thereto shall cease
to accrue or accrete.
The Bond Registrar shall take the following actions with respect to such Redemption
Notice:
(a} At least 30 but not more than 45 days prior to the redemption date. such
Redemption Notice shall be given to the respective Owners of Bonds designated for
redemption by registered or certified mail, postage prepaid, at their addresses
appearing on the Bond Register.
(b) At least 30 but not more than 45 days prior to the redemption date, such
Redemption Notice shall be given by (i) registered or certified mail, postage prepaid,
(ii) telephonically confirmed facsimile transmission, or (iii) overnight delivery service,
to each of the Securities Depositories.
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(c) At least 30 but not more than 45 days prior to the redemption date, such
Redemption Notice shall be given by (i) registered ar certified mail, postage prepaid,
or (ii) overnight delivery service, to one ofthe Information Services.
Neither failure to receive nor failure to publish any Redemption Notice nor any
defect in any such Redemption Notice so given shall affect the sufficiency of the proceedings
for the redemption of the affected Bonds. Each check issued or other transfer of funds made
by the Bond Registrar for the purpose of redeeming Bonds shall bear or include the CUSIP
number identifying, by issue and maturity, the Bonds being redeemed with the proceeds of
such check or other transfer.
(v) Partial Redemption of Bonds, Upon the surrender of any Bond redeemed in
part only, the Bond Registrar shall execute and deliver to the Owner thereof a new Band ar
Bonds of like tenor and maturity and of authorized denominations equal in Transfer Amounts
to the unredeemed portion of the Bond surrendered. Such partial redemption shall be valid
upon payment of the amount required to be paid to such Owner, and the County and the
District shall be released and discharged thereupon franc all liability to the extent of such
payment.
(vi)Effect of Notice of Redemption. Notice having been given as aforesaid,
and the moneys for the redemption (including the interest to the applicable date of redemption)
having been set aside in the District's Debt Service Fund, the Bonds to be redeemed shall
become due and payable on such date of redemption.
If on such redemption date, money for the redemption of all the Bonds to be
redeemed as provided in Section 5(b}(i} and (ii) hereof, together with interest accrued to such
redemption date, shall be held by the Bond Registrar so as to be available therefor on such
redemption date, and if notice of redemption thereof shall have been given as aforesaid, then
from and after such redemption date, interest with respect to the Bonds to be redeemed shall
cease to accrue or accrete and become payable. All money held by or on behalf of the Bond
Registrar for the redemption of Bonds shall be held in trust for the account of the Owners of
the Bonds so to be redeemed.
All Bonds paid at maturity or redeemed prior to maturity pursuant to the
provisions of this Section 5 shall be cancelled upon surrender thereof and be delivered to or
upon the order of the County and the District. All or any portion of a Bond purchased by the
County or the District shall be cancelled by the Bond Registrar.
(vii) Bonds No Longer Outstanding. When any Bonds (or portions
thereof), which have been duly called for redemption prior to maturity under the provisions of
this Resolution, or with respect to which irrevocable instructions to call for redemption prior
to maturity at the earliest redemption date have been given to the Bond Registrar, in form
satisfactory to it, and sufficient moneys shall be held by the Bond Registrar irrevocably in trust
for the payment of the redemption price of such Bonds or portions thereof, and, in the case of
Current Interest Bonds, accrued interest with respect thereto to the date fixed for redemption,
all as provided in this Resolution, then such Bonds shall no longer be deemed Outstanding and
shall be surrendered to the Bond Registrar for cancellation.
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(c) Book-Entry S,, sue.
{i) Definitions. As used in this Seetian. the terms set Earth below shall have
the meanings ascribed to them:
"Nominee" means the nominee of the Depository, which ma_y be the
Depository, as determined from time to time pursuant to this Section.
"Participants" means those broker-dealers, banks and other financial
institutions from time to time for which the Depository holds book-entry certificates as
securities depository.
(ii) Election of Book-Entry S. sue. The Bonds shall initially be delivered in
the form of a separate single fully-registered bond (which may be typewritten} for each
maturity- date of such Bonds in an authorized denomination (except for any odd denomination
Capital Appreciation Bond). The ownership of each such Bond shall be registered in the Bond
Register (as defined below) in the name of the Nominee, as nominee of the Depository and
ownership of the Bonds, or any portion thereof may not thereafter be transferred except as
provided in Section 5(c)(ii)(4).
With respect to book-entry Bonds, the District and the Bond Registrar shall
have no responsibility or obligation to any Participant or to any person on behalf of which
such a Participant holds an interest in such boak-entry Bonds. Without limiting the
immediately preceding sentence. the District and the Bond Registrar shall have no
responsibility or obligation with respect to (i) the accuracy of the records of the Depository,
the Nominee, or any Participant with respect to any ownership interest in boak-entry Bonds,
(ii) the delivery to any Participant or any other person, other than an owner as shown in the
Bond Register, of any notice with respect to boak-entry Bonds, including any notice of
redemption, (iii} the selection by the Depository and its Participants of the beneficial interests
in book-entry Bonds to be prepaid in the event the District redeems the Bonds in part, or
{iv) the payment by the Depositary or any Participant or any other person, of any amount with
respect to Accreted Value, Principal, premium, if any, or interest on the book-entry Bonds.
The District and the Bond Registrar may treat and consider the person in whose name each
book-entry Bond is registered in the Bond Register as the absolute owner of such book-entry
Bond for the purpose of payment of Accreted Value or Principal of and premium and interest
on and to such Bond, for the purpose of giving notices of redemption and other matters with
respect to such Bond, for the purpose of registering transfers with respect to such Bond, and
for all other purposes whatsoever. The $ond Registrar shall pay all Accreted Value or
Principal of and premium. if any, and interest on the Bonds only to or upon the order of the
respective owner, as shown in the Bond Register. or his respective attorney duly authorized in
writing, and all such payments shall be valid and effective to fully satisfy and discharge the
District's obligations with respect to payment of Accreted Value or Principal of, and premium,
if any, and interest on the Bonds to the extent of the sum or sums so paid. No person other
than an owner, as shown in the Bond Register, shall receive a certificate evidencing the
obligation to make payments of Accreted Value or Principal of, and premium, if any, and
interest on the Bonds. Upon delivery by the Depositary to the owner and the Bond Registrar,
of written notice to the effect that the Depository has determined to substitute a new nominee
in place of the Nominee, and subject to the provisions herein with respect to the Record Date,
the word Nominee in this Resolution shall refer to such nominee of the Depository.
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I. Deliver~of Letter of Representations. In order to qualify the book-entry
Bonds for the Depository's book-entry system, the District and the Bond Registrar
shall execute and deliver to the Depositary a Letter of Representations. The execution
and delivery of a Letter of Representations shall not in any way impose upon the
District or the Bond Registrar any obligation whatsoever with respect to persons
having interests in such book-entry Bonds other than the owners, as shown on the
Bond Register. By executing a Letter of Representations. the Bond Registrar shall
agree to take all actions necessary at all times so that the District will be in compliance
with all representations of the District in such Letter of Representations. In addition to
the execution and delivery oI' a Letter of Representations, the District and the Bond
Registrar shall take such other actions, nat inconsistent with this Resolution, as are
reasonably necessary to qualify book-entry Bonds for the Depository's book-entry
program.
2. Selection of Depository. In the event {i) the Depository determines not to
continue to act as securities depository for book-entry Bonds, or (ii) the District
determines that continuation of the book-entry system is not in the best interest of the
beneficial owners of the Bonds or the District, then the District will discontinue the
book-entry system with the Depository. If the District determines to replace the
Depository with another dualified securities depository, the District shall prepare or
direct the preparation of a new single, separate, fully registered bond for each maturity
date of such book-entry Band, registered in the name of such successor or substitute
qualified securities depository or its Nominee as provided in subsection (4) hereof. If
the District fails to identify another qualified securities depository to replace the
Depository, then the Bonds shall no loner be restricted to being registered in such
Bond Register in the name of the Nominee, but shall be registered in whatever name or
names the owners transferring or exchanging such Bonds shall designate, in
accordance with the provisions of this Section 5(c).
3. Payments to Depository. Notwithstanding any other provision of this
Resolution to the contrary, so long as all outstanding Bonds are held in book-entry and
registered in the name of the Nominee, all payments with respect to Accreted Value or
Principal of and premium, if any, or interest on the Bonds and all notices with respect
to such Bonds shall be made and given, respectively to the Nominees, as provided in
the Letter of Representations or as otherwise instructed by the Depository and agreed
to by the Bond Registrar notwithstanding any inconsistent provisions herein.
4. Transfer of Bonds to Substitute Depository.
(A) The Bonds shall be initially issued as described in the Official Statement
described herein. Registered ownership of such Bonds, or any portions thereof, may
not thereafter be transferred except:
(I) to any successor of DTC or its nominee, or of any substitute
depository designated pursuant to Section 5{e)(ii){4)(A}(2) ("Substitute
Depository"); provided that any successor of DTC or Substitute Depository
shall be qualified under any applicable laws to provide the service proposed to
be provided by it;
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(2) to any Substitute Depository designated by the District, upon (1 }the
resignation of DTC or its successor (or any Substitute Depository or its
successor) from its functions as depository or (2) a determination by the
District that DTC (or its successor) is no longer able to carry out its functions
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
(3) to any person as provided below, upon (1) the resignation of DTC or
its successor (or any Substitute Depository or its successor} from its functions
as depository, or (2) a determination by the District that DTC or its successor
(or Substitute Depository or its successor) is no longer able to carry out its
functions as depository.
(B} In the case of any transfer pursuant to Section 5{c)(ii)(4)(A)(1) or (2), upon
receipt of all outstanding Bonds by the Bond Registrar, together with a written request
of the District to the Bond Registrar designating the Substitute Depository, a single
new Bond, which the District shall prepare or cause to be prepared, shall be executed
and delivered for each maturity of Bands then outstanding, registered in the name of
such successor or such Substitute Depositary or their Nominees, as the case may be, all
as specified in such written request of the District. In the case of any transfer pursuant
to Section 5(c)(ii)(4)(A)(3), upon receipt of all outstanding Bonds by the Bond
Registrar, together with a written request of the District to the Bond Registrar, new
Bonds, which the District shall prepare or cause to be prepared, shall be executed and
delivered in such denominations and registered in the names of such persons as are
requested in such c~~ritten request of the District, provided that the Bond Registrar shall
not be required to deliver such new Bonds within a period of less than sixty (60) days
from the date of receipt of such written request from the District.
(C) In the case of a partial redemption or an advance refunding of any Bonds
evidencing a portion of the Maturity Value or Principal maturing in a particular year,
DTC or its successor (or any Substitute Depository or its successor) shall make an
appropriate notation on such Bonds indicating the date and amounts of such reduction
in Maturity Value or Principal, in form acceptable to the Bond Registrar, all in
accordance with the Letter of Representations. The Bond Registrar shall not be liable
for such Depository's failure to make such notations or errors in making such
notations.
{D) The District and the Bond Registrar shall be entitled to treat the person in
whose name any Bond 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 Bond Registrar or the District; and the District and the Bond Registrar
shall not have responsibility for transmitting payments to, communicating with,
notifying, or otherwise dealing with any beneficial owners of the Bonds. Neither the
District nor the Bond Registrar shall have any responsibility or obligation, legal or
otherwise, to any such beneficial owners or to any other party, including DTC or its
successor (or Substitute Depository or its successor), except to the Otivner of any
Bonds, and the Bond Registrar may rely conclusively on its records as to the identity of
the owners of the Bonds.
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SECTION 6. Execution of Bonds. The Bonds shall be executed by the Chair
of the County Board and the Treasurer or the Treasurer's designee, by their manual or
facsimile signatures and countersigned by the manual or facsimile signature of the Clerk of the
Board of Supervisors, all in their official capacities. No Bond shall be valid or obligatory for
any purpose or shall be entitled to any security or benefit under this Resolution unless and
until the certificate of authentication printed on the Bond is signed by the Bond Registrar as
authenticating agent. Authentication by the Bond Registrar shall be conclusive evidence that
the Band so authenticated has been duly issued, signed and delivered under this Resolution
and is entitled to the security and benefit of this Resolution.
There shall be attached to each Series B Bond, the legal opinion of Stradling Yocca
Carlson & Routh, a Professional Corporation, and, immediately preceding such legal opinion,
a certificate executed with the facsimile signature of the Clerk of the Board of Supervisors,
said certificate to be in substantially the following form:
'`The following is a true copy of the opinion rendered by Stradling
Yocca Carlson & Routh. a Professional Corporation in connection with
the issuance of, and dated as of the date of the original delivery of, the
bonds. A signed copy is on file in my office."
SECTION 7. Bond Registrar; Transfer and Exchange. So long as any ol~
the Bonds remains outstanding, the District will cause the Bond Registrar to maintain and
keep at its principal office all books and records necessary tar the registration, exchange and
transfer of the Bonds as provided in this Section. Subject to the provisions of Section 8 below,
the person in whose name a Bond is registered on the Bond Register shall be regarded as the
absolute owner of that Bond for all purposes of this Resolution. Payment of or on account of
the Principal or Accreted Value of and premium, if any, and interest on any Bond shall be
made only to or upon the order of that person; neither the District, the County nor the Bond
Registrar shall be affected by any notice to the contrary, but the registration may be changed
as provided in this Section. All such payments shall be valid and effectual to satisfy and
discharge the District's liability upon the Bands, including interest, to the extent of the amount
or amounts so paid.
Any Bond may be exchanged for Bonds of like tenor, maturity and Transfer
Amount upon presentation and surrender at the principal office of the Bond Registrar, together
with a request for exchange signed by the Owner or by a person legally empowered to do so in
a form satisfactory to the Bond Registrar. A Bond may be transferred on the Bond Register
only upon presentation and surrender of the Bond at the principal office of the Bond Registrar
together with an assignment executed by the Owner or by a person legally empowered to do so
in a form satisfactory to the Bond Registrar. Upon exchange or transfer, the Bond Registrar
shall complete, authenticate and deliver a new Bond or Bonds of like tenor and of any
authorized denomination or denominations requested by the Owner equal to the Transfer
Amount of the Bond surrendered and bearing or accruing interest at the same rate and
maturing on the same date. Capital Appreciation Bonds and Current Interest Bonds may not
be exchanged for one another.
If anv Bond shall become mutilated, the County, at the expense of the Owner of
said Bond, shall execute, and the Bond Registrar shall thereupon authenticate and deliver, a
new Bond of like series, tenor and Transfer Amount in exchange and substitution for the Bond
so mutilated, but only upon. surrender to the Bond Registrar of the Bond so mutilated. If any
Bond issued hereunder shall be lost. destroyed or stolen. evidence of such Lass, destruction or
theft may be submitted to the Band Registrar and, if such evidence be satisfactory to the Bond
Registrar and indemnity for the Bond Registrar, the County and the District satisfactory to the
Bond Registrar shall be given by the owner, the County, at the expense of the Bond owner,
shall execute. and the Bond Registrar shall thereupon authenticate and deliver, a new Bond of
like tenor in lieu of and in substitution for the Bond so lost, destroyed or stolen {or if any such
Bond shall have matured or shall have been called for redemption, instead of issuing a
substitute Bond the Bond Registrar may pay the same without surrender thereof upon receipt
of indemnity satisfactory to the Bond Registrar). 'The Bond Registrar may require payment of
a reasonable fee for each new Bond issued under this paragraph and of the expenses which
may be incurred by the County and the Bond Registrar.
If manual signatures on behalf of the County are required in connection with an
exchange or transfer, the Bond Registrar shall undertake the exchange or transfer of Bonds
only after the new Bonds are signed by the authorized officers of the County. In all cases of
exchanged or transferred Bonds, the County shall sign and the Bond Registrar shall
authenticate and deliver Bonds in accordance with the provisions of this Resolution. All fees
and costs of transfer shall be paid by the requesting party. Those charges may be required to
be paid before the procedure is begun for the exchange or transfer. All Bonds issued upon any
exchange or transfer shall be valid obligations of the District, evidencing the same debt, and
entitled to the same security and benefit under this Resolution as the Bonds surrendered upon
that exchange or transfer.
Any Bond surrendered to the Bond Registrar for payment, retirement,
exchange, replacement or transfer shall be cancelled by the Bond Registrar. The District and
the County may at any time deliver to the Bond Registrar for cancellation any previously
authenticated and delivered Bonds that the District and the County may have acquired in any
manner whatsoever, and those Bonds shall be promptly cancelled by the Bond Registrar. As
requested by the County, written reports of the surrender and cancellation of Bonds shall be
made to the District and the County by the Bond Registrar. "The cancelled Bonds shall be
retained for 2 years, then destroyed by the Bond Registrar as directed by the District.
Neither the District, the County nor the Bond Registrar will be required (a) to
issue or transfer any Bonds during a period beginning with the opening of business on the 15th
business day of the month next preceding any Bond Payment Date or the 15th business day
preceding any date of selection of Bonds to be redeemed and ending with the close of business
on the Bond Payment Date or any day on which the applicable notice of redemption is given
or (b} to transfer any Bonds which have been selected or called for redemption in whole or in
part.
SECTION 8. Payment. Payment of interest on any Current Interest Bond on
any Bond Payment Date shall be made to the person appearing on the registration books of the
Bond Registrar as the Owner thereof as of the Record Date immediately preceding such Bond
Payment Date, such interest to be paid by check mailed to such Owner on the Bond Payment
Date at his address as it appears on such registration books or at such other address as he may
have filed with the Bond Registrar for that purpose on or before the Record Date. The Owner
in an aggregate Principal Amount or Maturity Value of One Million Dollars 01,000,000) or
more may request in writing to the Bond Registrar that such Owner be paid interest by wire
transfer to the bank and account number on file with the Bond Registrar as of the Record Date.
The principal, and redemption premiums, if any, payable on the Current Interest Bonds and
12
the Accreted Value and redemption premiums, if any, on the Capital Appreciation Bonds shall
be payable upon maturity or redemption upon surrender at the principal office of the Bond
Registrar. The interest, Accreted Value. Principal and premiums, if any, on the Bonds shall be
payable in lawful money of the United States of America. The Bond Registrar is hereby
authorized to pay the Bonds when duly presented for payment at maturity, and to cancel ail
Bonds upon payment thereof The Bonds are general obligations of the District payable solely
from the proceeds of crd valorem taxes levies on all property subject to such taxes within the
District. The Bonds do not constitute an obligation of the County except as provided in this
Bond Resolution. No part of any fund of the County is pledged or obligated to the payment of
the Bonds.
SECTION 9. Form of Bonds. "The Bonds shall be in substantially the
foiiawing form, allowing those officials executing the Bands to make the insertions and
deletions necessary to conform the Bands to this Resolution and the Official Statement.
~~
(Form of Current Interest Bond)
REGISTERED
NO.
REGISTERED
CHICO UNIFIED SCFIOOL DISTRICT
(BUTTE COUNTY, CALIFORNIA)
ELECTION OF 1998 GENERAL OBLIGATION BOND, SERIES B
INTEREST
RATE:
per annum
MATURITY
DATE
August I , _
DATED AS OF: CUSIP
Date of Delivery
REGISTERED OWNER: CEDE & CO.
PRINCIPAL AMOUNT:
Chico Unified School District (the "District"'} in Butte County,. California (the
"County'), for value received, promises to pay to the Registered Owner named above, or
registered assigns, the Principal Amount on the Maturity Date, each as stated above. and
interest thereon Lmtil the Principal Amount is paid ar provided for at the Interest Rate stated
above, on February 1 and August 1 of each year (the "Bond Payment Dates"}, commencing
August 1, 2008. This bond will bear interest from the Bond Payment Date next preceding the
date of authentication hereof unless it is authenticated as of a day during the period from the
15th day of the month next preceding any Bond Payment Date to the Bond Payment Date,
inclusive, in which event it shall bear interest from such Bond Payment Date, or unless it is
authenticated on or before July 15, 2008, in which event it shall bear interest from its Dated
Date. Interest on this bond shall be computed on the basis of a 360-day year of twelve 30-day
months. Principal and interest are payable in lawful maney of the United States of America,
without deduction for the paying agent services, to the person in whose name this bond (or, if
applicable, one or more predecessor bonds) is registered (the "Registered Owner") on the
Register maintained by the Bond Registrar, initially The Bank of New York Trust Company,
N.A. Principal is payable upon presentation and surrender of this bond at the principal office
of the Bond Registrar. Interest is payable by cheek or draft mailed by the Bond Registrar on
each Band Payment Date to the Registered Owner of this bond (or one or more predecessor
bonds) as shown and at the address appearing on the Register at the close of business on the
15th day of the calendar month next preceding that Band Payment Date (the "Record Date").
The Owner of Current Interest Bonds in the aggregate principal amount of One Million
Dollars ($1,000,000) or more may request in writing to the Bond Registrar that the Owner be
paid interest by wire transfer to the bank and account number on file with the Bond Registrar
as of the Record Date.
This band is one of an authorization of $ of bands approved to raise
maney for the purposes authorized by voters of the District at the Election, defined below; and
to pay all necessary legal, financial, engineering and contingent casts in connection therewith
under authority of and pursuant to the laws of the State of California, in particular Chapter 1 of
14
Part 10 of Division 1 of "Title 1 (commencing with Section 15100 et seq.) of the California
Education Code and the requisite vote of two-thirds or more of the electors of the District cast
at an election held on April 14, 1998 (the "Election''}, upon the question of issuing bonds in
the amount of $48,725,000 and the resolutions of the Board of Education of the District
adopted on March 26, 2008 (the "District Resolution"'} and of the County Board of
Supervisors adopted on , ?008 (the ``Bond Resolution"). "1 his bond and the issue
of which this bond is one are payable as to both principal and interest ITOTTl the proceeds of the
levy of ad vc~k~reni taxes on all property subject to such taxes in the District, which taxes are
unlimited as to rate or amount. The bonds of this issue are general obligations of the District
and do not constitute an obligation of the County except as provided in the Bond Resolution.
No part of any fund of the County is pledged or obligated to the payment of the Bonds of this
issue.
The bonds of this issue comprise $ principal amount of Current
Interest Bonds, of which this bond is a part (a ``Current Interest Bond'") and Capital
Appreciation Bonds of which $ represents the Denominational Amount and $
represents the Maturity Value.
This bond is exchangeable and transferable for bonds of like tenor.. maturity
and Transfer Amount (as defined in the Bond Resolution) and in authorized denominations at
the principal office of the Bond Registrar in Los Angeles, California, by the Registered Owner
or by a person legally empowered to do so, in a form satisfactory to the Bond Registrar, all
subject to the terms, limitations and conditions provided in the Bond Resolution. All fees and
costs of transfer shall be paid by the transferor. The District. the County and the Bond
Registrar may deem and treat the Registered Owner as the absolute owner of this bond for the
purpose of receiving payment of or an account of principal or interest and far all other
purposes, and neither the District, the County nor the Bond Registrar shall be affected by any
notice to the contrary.
Neither the District, the County nor the Bond Registrar will be required (a) to
issue or transfer any bond during a period beginning with the opening of business on the 15th
business day of the month next preceding any Bond Payment Date or the 15th business day
preceding any date of selection of bonds to be redeemed and ending with the close of business
on the Bond Payment Date or day on which the applicable notice of redemption is given or (b)
to transfer any bond which has been. selected or called for redemption in whole or in part.
The Current Interest Bonds maturing on or before August 1, 20 are not
subject to redemption prior to their fixed maturity dates. The Current Interest Bands maturing
on or after August 1, 20 are subject to redemption on or after August 1, 20 at the option
of the District as a whole or in part on any date, at a redemption price equal to 100% of the
Principal Amount of the Current Interest Bonds called for redemption plus interest accrued
thereon to the date fixed for redemption, without premium.
~5
The Current Interest Bonds maturing on August 1, 20 are subject to
redemption prior to maturity from mandatory sinking fund payments on August 1 of each
year, on and after August l , 20 , at a redemption price edual to the principal amount thereof,
together with accrued interest to the date fixed far redemption, without premium. 'The
principal amount represented by such Bonds to be sa redeemed a.nd the dates therefor and the
final principal payment date is as indicated in the following table:
Redemption Date Principal
(Au u~st 1 ~ Amount
20
Za
Zo
zo ~' ~
ToTa>/
' Final Maturity.
If less than all of the bonds of any one maturity shall be called for redemption,
the particular bonds or portions of bonds of such maturity to be redeemed shall be selected by
lot by the District in such manner as the District in its discretion may determine; provided,.
however, that the portion of any bond to be redeemed shall be in the principal amount of Five
'Thousand Dollars {$5,000) or some multiple thereof. If less than all of the bonds stated to
mature on different dates shall be called for redemption, the particular bands or portions
thereof to be redeemed shall be called in any order of maturity selected by the District or, if
not so selected, in the inverse order of maturity. V~'ithin a maturity. the Bond Registrar shall
select Bonds for redemption by lot.
Reference is made to the Bond Resolution for a more complete description of
the provisions, among others. with respect to the nature and extent of the security for the
bands of this Series. the rights, duties and obligatians of the District, the County, the Bond
Registrar and the Kegistered Owners, and the terms and conditions upon which the bonds are
issued and secured. The Registered Owner of this bond assents, by acceptance hereof, to all of
the provisions of the Bond Resolution.
It is certified and recited that all acts and conditions required by the
Constitution and laws of the State of California to exist, to occur and to be performed or to
have been met precedent to and in the issuing of the bonds in order to make them legal, valid
and binding general obligations of the District. have been performed and have been met in
regular and due form as required by law; that payment in full for the bonds has been received;
that no statutory or constitutional limitation on indebtedness or taxation has been exceeded in
issuing the bonds; and that due provision has been made for levying and collecting cad i~alorem
property taxes on all of the taxable property within the District in an amount sufficient to pay
principal and interest when due.
This bond. shall not be valid or obligatory for any purpose and shall not be
entitled to any security or benefit under the Bond Resolution until the Certificate of
Authentication below has been signed.
i6
IN WITNESS WHEREOF, the Board of Supervisors of the County of Butte,
California, has caused this bond to be executed on behalf of~ the District and in their official
capacities by the manual or facsimile signatures of the Chair of the County Board of
Supervisors and the Treasurer-Tax Collector of the County, and to be countersigned by the
manual or facsimile signature of the Clerk of the County Board of Supervisors, and has caused
the seal of the County to be affixed hereto, all as of the date stated above.
COUNTY OF BUTTE, CALIFORNIA
By:
Chair of the Board of Supervisors
Bv:
Treasurer-Tax Collector
COUNTERSIGNED:
Clerk of the Board of Supervisors
CERTIFICATE OF AUTHENTICATION
This bond is one of the bonds described in the Bond Resolution referred to
herein which has been authenticat d and.registered on , 200$.
THE BANK OF NEB' YORK TRUST
COMPANY, N.A., as Bond Registrar
Bv:
Authorized Signatory
17
STATEMENT OF INSURANCE
[TO COME]
ASSIGNMENT
For value received, the undersigned sells, assigns and transfers to (print or
typewrite name, address and zip code of Transferee):
this
bond and irrevocably constitutes and appoints attorney to transfer this bond on the books for
registration thereof,. with full power of substitution in the premises.
Dated:
Signature Guaranteed:
Notice: The assignor's signature to this assignment must correspond with
the name as it appears upon the within bond in every particular,
without alteration or any change whatever, and the signature(s)
must be guaranteed by an eligible guarantor institution.
Social Security Number, Taxpayer Identification Number or other
identifying number of Assignee:
Unless this certificate 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 certificate 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 & Ca., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BZ' OR TO ANY PERSON IS WRONGFUL since the
registered owner hereof, Cede & Co., has an interest herein.
18
LEGAL OPINION
The following is a true copy of the opinion rendered by Stradling Yocca
Carlson & Rauth, a Professional Corporation in connection with the issuance of, and dated as
of the date of the original delivery of, the bonds. A signed copy is on file in my office.
(Facsimile)
Clerk, Board of Supervisors
(Form of Legal Opinion)
~9
(Form of Capital Appreciation Bond}
REGISTERED REGISTERED
NO. $
CHICO UNIFIED SCHOOL DlS"I'RIC"I
(BUTTE COUNTY, CALIFORNIA)
ELECTION OF 1998 GENERAL OBLIGA"PION BOND. SERIES B
ACCRE"PION RATE: MATURITY DATE: DATED AS OF: CU51Y
August 1, Date of Delivery
REGISTERED OWNER: CEDE & CO.
DENOMINATIONAL AMOUN"F:
MATURITY VALUE:
Chico Unified School District (the "District'} in Butte County, California {the "Counh~"). for value
received, promises to pay to the Registered Owner named above, or registered assigns. the Maturity Value on
the Maturity Date, each as stated above, such Maturity Value comprising the Denominational Amount and
interest accreted thereon. This bond will not bear current interest but will accrete interest. compounded on
each February l and August 1. commencing on August 1, 2008, at the Accretion Rate specified above to the
Maturity Date, assuming that in any such semiannual period the sum of such compounded accreted interest
and the Denominational Amount (such sum being herein called the "Accreted Value"') increases in equal daily
amounts on the basis of a 360-day year consisting of twelve 30-day months. Accreted Value and redemption
premium, if any, are payable in lawful money of the United States of America. without deduction for the
paying agent services, to the person in whose name this bond (or, if applicable, one or more predecessor
bonds} is registered (the ``Registered Owner'') on the Register maintained by the Bond Registrar, initially The
Bank of New York Trust Company, N.A. Accreted Value and redemption premium, if any, are payable upon
presentation and surrender of this bond at the principal office of the Bond Registrar.
This bond is one of an authorization of $ of bonds approved to raise money for the
purposes authorized by voters of the District at the Election, as defined below; and to pay all necessary legal,
financial. engineering and contingent costs in connection therewith under authority of and pursuant to the laws
of the State of California, in particular Chapter i of Part 10 of Division 1 of Title 1 (commencing with Section
15100 et seq.) of the California Education Code and the requisite vote of two-thirds or more of the electors of
the District cast at an election held on April I4, 1998 {the "Election"). upon the question of issuing bonds in
the amount of $48.725.000 and the resolutions of the Board of Education of the District adopted on March 26,
200$ (the "District Resolution'') and of the County Board of Supervisors adopted on .2008 (the
"Bond Resolution"). This bond and the issue of which this bond is one are payable as to both principal and
interest from the proceeds of the levy of acl valorem tares on all property subject to such taxes in the District,
which taxes are unlimited as to rate or amount. The bonds of this issue are general obligations of the District
and do not constitute an obligation of the County except as provided in the Bond Resolution. No part of any
fund of the County is pledged or obligated to the payment of the Bonds of this issue.
The bonds of this issue comprise $ principal amount of Current Interest Bonds (each a
``Current Interest Bond'") and Capital Appreciation Bonds, of which this band is a part, in the Denominational
Amount of $ and the Maturity Value of
This bond is exchangeable and transferable for bonds of like tenor. maturity and Transfer Amount (as
defined in the Bond Resolution} and in authorized denominations at the principal office of the Bond Registrar
20
in Los ,Angeles. California, by the Registered Owner ar by a person legally empowered to do so. in a form
satisfactory to the Bond Registrar, all subject to the terTns. limitations and conditions provided in the Bond
Resolution. All fees and casts of transfer shall be paid by the transferor. The District, the County and the
Band Registrar may deem and treat the Registered Owner as the absolute owner of this band f-or the purpose
of receiving payment of or on account of principal ar interest and for all other purposes. and neither the
District. the County nor the Band Registrar shall be affected by any notice to the contrary.
Neither the District, the County nor the Bond Registrar will be required (a) to issue or transfer any
bond during a period beginning with the opening of business on the 15th business day of the month next
preceding any Band Payment Date ar the 15th business day preceding any date of selection of bonds to be
redeemed and ending with the close of business on the Bond Payment Date or day on which the applicable
notice of redemption is given ar (b) to transfer any bond which has been selected or called for redemption in
whole or in part.
(The Capital Appreciation Bonds are not subject to redemption prior to their stated maturity dates.]
Reference is made to the Bond Resolution for a more complete description of the provisions, among
others. with respect to the nature and extent of the security far the Capital Appreciation Bonds of this series,
the rights, duties and obligations of the District, the County, the Bond Registrar and the Registered Owners.
and the terms and conditions upon which the bands are issued and secured. The Registered Owner of this
bond assents. by acceptance hereof. to al( of the provisions of the Bond Resolution.
It is certified and recited that all acts and conditions required by the Constitution and laws of the State
of California to exist, to occur and to be performed or to have been met precedent to and in the issuing of the
bonds in order to make them legal, valid and binding general obligations of the District, have been performed
and have been met in regular and due form as required by law; that payment in full for the bonds has been
received: that no statutory or constitutional limitation on indebtedness or taxation has been exceeded in
issuing the bands; and that due provision has been made for levying and collecting ad valorem property taxes
on all of the taxable property within the District in an amount sufficient to pay principal and interest when
due.
This bond shall not be valid or obligatory for any purpose and shall not be entitled to any security or
benefit under the Bond Resolution until the Certificate of Authentication below has been signed.
21
IN WITNESS WHEREOF. the board of Supervisors of the County of Butte. California, has caused
this bond to be executed on behalf of the District and in their official capacities by the manual or facsimile
signatures of the Chair of the County Board of Supervisors and the Treasurer-Tai Collector of the County,
and to be countersigned by the manual or facsimile signature of the Clerk of the County Board of Supervisors,
and has caused the seal of the County to be affiixed hereto. all as of the date stated above.
COUNTY OF BUTTE, CALIFORNIA
Bv:
Chair of the Board of Supervisors
By:
Treasurer-'Tax Collector
COllNTERSIGNED:
By
Clerk of the Board of Supervisors
CERTIFICATE OF AUTHENTICATION
This bond is one of the bonds described in the Bond Resolution referred to herein ~hieh has been
authenticated and registered on .2008.
THE BANK OF NEW YORK TRUST COMPANY. N.A.. as
Bond Registrar
Bv:
Authorized Signatory
22
STATEMENT t7F INSURANCE
[TO COME]
ASSIGNMENT
For value received, the undersigned sells. assigns and transfers to (print ar typewrite name. address
and IIP code of Transferee): this bond and
irrevocably constitutes and appoints attorney to transfer this band on the books for registration thereof: with
full power of substitution in the premises.
Dated:
Signature Guaranteed:
Notice: 'The assignors signature to this assignment must correspond with the name as it appears upon
the face of the within bond in every particular, without alteration or by any change whatever,
and the signature(s) must be guaranteed by an eligible guarantor institution.
Social Security Number, Taxpayer Identification Number ar other identifying number of
Assignee:
Unless this certificate is presented by an authorized representative of~ The Depository Trust Company
to.~e issuer or its agent for registration of transfer, exchange or payment, and any certificate 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 TKANSFER, PLEDGE OR
OTHER USE HEREGF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON [S WRONGFUL since
the registered owner hereof, Cede & Co., has an interest herein.
?;
LEGAL OPINION
The following is a true copy of the opinion rendered by Stradling Yocca Carlson & Rauth. a
Professional Corporation in connection ~~ith the issuance of, and dated as of the date of the original delivery
of. the bonds. A signed copy is on file in my office.
{Facsimile}
Clerk. Board of Supe~~isors
(Form of Legal t~pinion)
24
SECTION 10. DeliverV~ of Bands. The proper officials of the County shall cause the Bonds to be
prepared and, following their sale. shall have the Bonds signed and delivered. together with a true transcript of
the proceedings with reference to the issuance of the Bonds, to the original purchaser upon payment of the
purchase price therefor.
SECTION 11. Deposit of Proceeds of Bonds. The proceeds from the sale of the Bonds, to the
extent of the Denominational Amount and the Principal Amount thereof, shall be paid to the County to the
credit of the fund hereby created and established and to be known as the "Chico Unified School District,
Election of 1998 General Obligation Bonds Series B Building Fund" (the "Building Fund'") of the District.
shall be kept separate and distinct from all other District and County funds, and those proceeds shall be used
solely for the purpose for which the Bonds are being issued and provided further that such proceeds shall be
applied solely towards the purposes of the Election. The accrued interest and any premium received by the
District from the sale of the Bonds shall be kept separate and apart in the fund hereby created and established
and to be designated as the "Chico Unified School District, Election of 1998 General Obligation Bonds
Series B Debt Service Fund'' (the ``Debt Service Fund'') for the Bonds and used only for payment of Accreted
Value or Principal of and interest on the Bonds. Interest earnings on monies held in the Building Fund shall
be retained in the Building Fund. Interest earnings on monies held in the Debt Service Fund shall be retained
in the Debt Service Fund. Any excess proceeds of the Bonds not needed for the authorized purposes set forth
herein for which the Bonds are being issued, upon written notice from the District, shall be transferred to the
Debt Service Fund and applied to the payment of Accreted Value or Principal of and interest on the Bonds. If,
after payment in full of the Bonds, there remain excess proceeds. any such excess amounts shall be transferred
to the General Fund of the District.
Subject to federal tax restrictions, monies in the funds created hereunder shall be invested in the
County treasury pursuant to law and the investment policy of the County. At the written direction of the
District, the proceeds of the Bonds may be invested in any lawful investment permitted by Sections 16429.1
and 53601 of the Government Code of the State of California (the "Government Code'') or in shares in a
California common law trust established pursuant to Title 1, Division '7, Chapter 5 of the Government Code
which invests exclusively in investments permitted by Section 53635 of the Government Code or in the Local
Agency Investment Fund managed by the California State Treasurer.
Except as required below to satisfy the requirements of Section 148{~ of the [nternal Revenue Code of
1986, as amended (the "Code'"), interest earned on the investment of monies held in the Debt Service Fund
shall be retained in the Debt Service Fund and used by the County to pay the Accreted Value or Principal of
and interest on the Bonds when due.
SECTION 12. Rebate Fund.
(a) The District shall create and establish a special fund designated the "Chico Unified School,
Election of 1998 District General Obligation Bonds Series B Rebate Fund" (the "Rebate Fund"). A11 amounts
at any time on deposit in the Rebate Fund shall be held in trust, to the extent required to satisfy the
requirement to make rebate payments to the United States (the "Rebate Requirement'") pursuant to Section 148
of the Code, and the Treasury Regulations promulgated thereunder (the ``Treasury Regulations'"). Such
amounts shall be free and clear of any lien hereunder and shall be governed by this Section and by the Tax
Certificate to be executed by the District.
(b) Within forty-five (45) days of the end of each fifth Bond Year (as such term is defined in the
Tax Certificate). (1 }the District shall calculate or cause to be calculated with respect to the Bonds the amount
that would be considered the ``rebate amount'" within the meaning of Section 1.148-3 of the Treasury
Regulations. using as the "computation date"" for this purpose the end of such Bond Year, and (2) the District
shall deposit to the Rebate Fund from amounts on deposit in the other funds established hereunder or from
other District funds, if and to the extent required, amounts sufficient to cause the balance in the Rebate Fund
25
to be equal to the "rebate amount" so calculated. The District shall not be required to deposit any amount to
the Rebate Fund in accordance with the preceding sentence. if the amount on deposit in the Rebate Fund prior
to the deposit required to be made under this subsection {b) equals or exceeds the "rebate amount'' calculated
in accordance with the preceding sentence. Such excess may be withdrawn from the Rebate Fund to the
extent permitted under subsection {g) of this Section. The District shall not be required to calculate the
"rebate amount'' and shall not be required to deposit any amount to the Rebate Fund in accordance with this
subsection (b). with respect to all or a portion of the proceeds of the Bonds (including amounts treated as
proceeds of the Bonds) (1 } to the extent such proceeds satisfy the expenditure requirements of Section
148(f)(4)(B) or Section 148(f){4)(C) of the Code or Section 1.148-7(d) of the Treasury Kegulations,
whichever is applicable, and otherwise qualify for the exception to the Rebate Requirement pursuant to
whichever of said sections is applicable. (2) to the extent such proceeds are subject to an election by the
District under Section 148(f)(4)(C)(vii) of the Code to pay a one and one-half percent (I'I2%) penalty in lieu of
arbitrage rebate in the event any of the percentage expenditure requirements of Section 148(f)(4)(C) are not
satisfied, or (3) to the extent such proceeds qualify for the exception to arbitrage rebate under Section
148(f)(4}(A)(ii) of the Code for amounts in a "bona fide debt service fund." In such event. and with respect to
such amounts, the District shall not be required to deposit any amount to the Rebate Fund in accordance with
this subsection (b).
(c) Any funds remaining in the Rebate Fund after redemption of all the Bonds and any amounts
described in paragraph (2} of subsection {d} of this Section, or provision made therefor satisfactory to the
District, including accrued interest, shall be remitted to the District.
(d) Subject to the exceptions contained in subsection (b) of this Section to the requirement to
calculate the "rebate amount" and make deposits to the Rebate Fund, the District shall pay to the United
States. from amounts on deposit in the Rebate Fund.
(i) not later than sixty (60) days after the end of (i) the fifth (5th) Bond Year. and (ii) each
f fth {5th) Bond Year thereafter. an amount that, together with all previous rebate payments, is equal to
at least 90°to of the "rebate amount" calculated as of the end of such Bond Year in accordance with
Section l .148-3 of the Treasury Regulations; and
(2) not later than sixty (60) days after the payment of all Bonds, an amount equal to one
hundred percent (100°/a) of the "rebate amount"" calculated as of the date of such payment (and any
income attributable to the "rebate amount'' determined to be due and payable) in accordance with
Section 1.148-3 of the Treasury Regulations.
(e) In the event that. prior to the time any payment is required to be made from the Rebate Fund,
the amount in the Rebate Fund is not sufficient to make such payment when such payment is due, the District
shall calculate (or have calculated) the amount of such deficiency and deposit an amount equal to such
deficiency into the Rebate Fund prior to the time such payment is due.
(f) Each payment required to be made pursuant to subsection (d) of this Section shall be made to
the Internal Revenue Service Center, Ogden. Utah 84201, on or before the date on which such payment is due.
and shall be accompanied by Internal Revenue Service Form 8038-T. such form to be prepared or caused to be
prepared by the District.
(g) In the event that immediately following the calculation required by subsection (b) of this
Section, but prior to any deposit made under said subsection, the amount on deposit in the Rebate Fund
exceeds the "rebate amount'" calculated in accordance with said subsection, the District may withdraw the
excess from the Rebate Fund and credit such excess to the Debt Service Fund.
26
(h) "i'he District shall retain records of all determinations made hereunder until six years after the
complete retirement of the Bonds.
(i) Notwithstanding anything in this Resolution to the contrary. the rebate Requirement shall
survive the payment in full or defeasance of the Bonds.
SECTION 13. Seeurit~~ for the Bonds. There shall be levied on all the taxable property in the
District. in addition to all other taxes, a continuing direct ad valorem tax annually during the period the Bonds
are outstanding in an amount sufficient to pay the principal of and interest on the Bonds when due. which
monies when collected will be placed in the Debt Service Fund of the District, which fund is irrevocably
pledged for the payment of the principal and Accreted Value of and interest on the Bonds when and as the
same fall due.
SECTION 14. Arbitrage Cotienant. The County acknowledges that the District has covenanted that
it will restrict the use of the proceeds of the Bands in such manner and to such extent. if any, as may be
necessary, so that the Bonds will not constitute arbitrage bonds under Section i48 of the Code and the
applicable regulations prescribed under that Section or any predecessor section. Calculations for determining
arbitrage requirements are the sole responsibility of the District.
SECTION 15. Conditions Precedent. Based in part on representations of the District, this Board
determines that all acts and conditions necessary to be performed by the Board or to have been met precedent
to and in the issuing of the Bonds in order to make them legal. valid and binding general obligations of the
District have been performed and have been met, or will at the time of delivery of the Bonds have been
performed and have been met, in regular and due form as required by law; that the full faith. credit and
revenues of the District are pledged for the timely payment of the principal of and interest on the Bands; and
that no statutory or constitutional limitation of indebtedness or taxation will have been exceeded in the
issuance of the Bands.
SECTION 16. Official Statement. The District has approved the forms of a Preliminary Official
Statement and Official Statement relating to the Bonds to be used in connection with the offering and sale of
the Bonds in such time and manner as to conform with the requirements of Rule l Sc2-12 of the Securities and
Exchange Commission, The District has further authorized the Financial Advisor to distribute copies of the
Preliminary tfficial Statement and the Official Statement to persons who may be interested in the purchase of
the Bonds and deliver copies of any final C?ff7cial Statement to the purchaser of the Bands.
SECTION 17. Insurance. In the event the District purchases bond insurance for the Bands, and to
the extent that the Bond Insurer makes payment of the principal, interest or r~ecreted Value on the Bonds, it
shall become the owner of such Bonds with the right to payment of principal. interest or Accreted Value on
the Bonds, and shall be fully subrogated to all of the Owners' rights, including the Owners' rights to payment
thereof. To evidence such subrogation (i) in the case of subrogation as to claims that were past due interest
components. the Bond Registrar shall note the Bond Insurer's rights as subrogee on the registration books far
the Bonds maintained by the Bond Registrar upon receipt of a copy of the cancelled check issued by the Band
Insurer for the payment of such interest to the Owners of the Bonds, and (ii) in the case of subrogation as to
claims for past due Principal or Accreted Value, the Bond Registrar shall note the Bond Insurer as subrogee
on the registration books for the Bonds maintained by the Bond Registrar upon surrender of the Bonds by the
Owners thereof to the Bond Insurer or the insurance trustee for the Band Insurer.
SECTION 1$. Defeasance. All or any portion of the outstanding maturities of the Bonds may be
defeased prior to maturity in the following ways:
(a) Cash: by irrevocably depositing with the Bond Registrar or with an independent
escrow agent selected by the District an amount of cash which together with amounts then on deposit
~7
in the Debt Service Fund is sufficient to pay all Bonds outstanding and designated far defeasanee,
including all principal and interest and premium. if any; or
(b) Government Obli atg ions: by irrevocably depositing with the Bond Registrar or with
an independent escrow agent selected by the District noncallable Government Obligations together
with cash, if required, in such amount as will, in the opinion of an independent certified public
accountant, satisfactory to the County, together with interest to accrue thereon and moneys then on
deposit in the Debt Service Fund together with the interest to accrue thereon. be fully sufficient to pay
and discharge all Bonds outstanding and designated for defeasance (including all principal and interest
represented thereby and prepayment premiums, if any} at or before their maturity date;
then, notwithstanding that any of such Bonds shall not have been surrendered for payment, all obligations of
the District and the County with respect to all such designated outstanding Bonds shall cease and terminate,
except only the obligation of the County and the Bond Registrar or an independent escrow agent selected by
the District to pay or cause to be paid from funds deposited pursuant to paragraphs {a) or {b) of this Section, to
the owners of such designated Bonds not so surrendered and paid all sums due with respect thereto.
For purposes of this Section, Government Obligations shall mean:
Direct and general obligations of the United States of America (which may consist of
obligations of the Resolution Funding Corporation that constitute interest strips,), or obligations that
are unconditionally guaranteed as to principal and interest by the United States of America, or
"prerefunded'" municipal obligations rated in the highest rating category by Moody's Investor's
Service or Standard & Poor's. In the case of direct and general obligations of the United States of
America, Government Obligations shall include evidences of direct ownership of proportionate
interests in future interest or principal payments of such obligations. [nvestments in such
proportionate interests must be limited to circumstances where (a) a bank or trust company acts as
custodian and holds the underlying United States obligations; (b} the owner of the investment is the
real party in interest and has the right to proceed directly and individually against the obligor of the
underlying United States obligations; and (c) the underlying United States obligations are held in a
special account, segregated from the custodian's general assets. and are not available to satisfy any
claim of the custodian, any person claiming through the custodian, or any person to whom the
custodian may be obligated; provided that such obligations are rated or assessed "AAA" by Standard
& Poor's or ``Aaa"' by Moody's Investor's Service.
SECTION 19. Amendments. {a) The County may from time to time (which may be at the request of
the District, made in writing), and at any time, without notice to or consent of any of the Owners, by action of
the County Board, amend the provisions of this Resolution for any of the following reasons:
(1) to cure any ambiguity, to correct or supplement any provision herein which may be
inconsistent with any other provision herein or therein, or to make any other provision with respect to
matters or questions arising under this Resolution, provided that such action shall not adversely affect
the interests of the Bond owners;
{2) to add to the covenants and agreements of and the limitations and the restrictions upon
the District contained in this Resolution which are not contrary to or inconsistent with this Resolution
as theretofore in effect; and
(3) to modify, alter, amend or supplement this Resolution in any other respect which is not
materially adverse to the Bond owners.
In the event of any such amendment, the County shall promptly provide the District and the paying
agent with copies of such amendment and the action of the County Board approving such amendment.
28
(b) Notwithstanding any other provision herein. the provisions of this Resolution may be amended
by the Official Statement.
SECTION 20. Indemnification of County. The County acknowledges and relies upon the fact that
the District has represented that it shall indemnify and hold harmless. to the extent permitted by law, the
County and its officers and employees ("Indemnified Parties"~), against any and all losses, claims. damages or
liabilities, joint or several, to which such [ndemnified Parties may become subject because of action or
inaction related to the adoption of this resolution. or related to the proceedings for sale. award. issuance and
delivery of the Bonds in accordance herewith and with the District Resolution and that the District shall also
reimburse any such Indemnified Parties for any legal ar other expenses incurred in connection with
investigating or defending any such claims or actions.
SECTION 21. Other Actions. Officers of the Board and County officials and staff are hereby
authorized and directed. jointly and severally, to do any and all things and to execute and deliver any and ail
documents which they may deem necessary or advisable in order to proceed with the issuance of the Bonds
and otherwise carry out, give effect to and comply with the terms and intent of this Resolution. Such actions
heretofore taken by such officers, officials and staff are hereby ratified, confirmed and approved
SECTION 22. Continuing Disclosure. The District has covenanted and agreed that it will comply
with and carry out all of the provisions of the Continuing Disclosure Certificate. Any Bondholder may take
such actions as may be necessary and appropriate, including seeking mandate or specific performance by court
order, to cause the District to comply with its obligations under this Section.
SECTION 23. Unclaimed Funds. Notwithstanding any other provisions of this Resolution. any
monies held in any fund created pursuant to this Resolution, or by the Bond Registrar in trust, for the payment
of the principal of, redemption premium, if any. interest in Maturity Value on the Bonds and remaining
unclaimed for one year after the principal of all of the Bonds have become due and payable (whether by
maturity or upon prior redemption) shall be, after payment in full of the Bonds, transferred to the general fund
of the District to be applied in accordance with law; provided, however, that the Bond Registrar. before
making such payment, shall cause notice to be mailed to the Owners of all Bonds that have not been paid, by
first-class mail at the addresses on the Bonds Register. postage prepaid, no less than 90 days prior to the date
of such payment. Thereafter, the District shall have all responsibility and liability for the payment of such
Bonds.
SECTION 22. Resolution to Treasurer-Tax Collector. The Clerk of this Board of Supervisors is
hereby directed to provide a copy of this Resolution to the Treasurer-Tax Collector of Butte County
immediately following its adoption.
SECTION 23. Effective Date. This Resolution shall take effect immediately upon its passage.
[REMAINDER OF PAGE LEFT BLANK]
29
PASSED AND ADOPTED this 8th day of April. 2008 by the fiollowing vote:
AYES: Supervisors Connelly, Kirk, Dolan, Yamaguchi, and Chair Josiassen
NOES: None
ABSENT: None
At3SENT101~]S: None
COUNTY OF BUTTE, CALIFORNIA
's
" Chair of the Board of Supervisors
A"I°TEST: ~
7 > r
~ ~ ~ ~;:i~ ? n j ,
By:
CCer of the ~oard of Sup visors
i
Approved as to fiorm and legality:
By
County Counsel
30
CLERK'S CERTIFICATE
r l ,% ` ~
I. ~ _~~~ ~~~_`l~(~.VL~ .,` .Clerk of the Board of Supervisors of Butte County. California,
hereby certify as folio
"I'he foregoing is a full, true and correct copy of a resolution duly adopted at a regular meeting oftlle
Board of Supervisors of said County duly and regularly and legally held at the regular meeting place thereof
on April $, 2008. of which meeting all of the members of the Board of said County had due notice and at
which a quorum was present.
[ have carefully compared the same with the original minutes of said meeting on file and of record in
my office and the foregoing is a full, true and correct copy of the original resolution adopted at said meeting
and entered in said minutes.
Said resolution has not been amended, modified or rescinded since the date of its adoption. and the
same is now in full force and effect.
Dated: (4 j , 200$
~~` -~ /
' }, !/,
f // /I rf ~~ /,~:'Y~/J'
~ ~ erk ~i.- ///
r
31
i~:xi iii3ri n
NO"1'IC1~: INV17'ING PItOPOSf1LS FO12 PUI2CIIASI~: OF GUIZIth;iA''I' IN'1~1?IZI~;S'1' 13ON1)S
~;U,7?~,000'
C111C0 INII~Ii:U SC}IC)OI, I~1S'I'RIC~I~
(13U'I'~I`I~; COUN'I~Y, C`nl.l}~'OIZNIn)
I~~I.I~:C~I~IUN OF 1908 GI~;NIIZAI. Uf3LIG~1~f1C)N 13ONI)S, SI-;IZII;S 13
N<)I~ICI: IS I II:IZLIiI' C;IVI:'~~ that sealed uncunditi~7ncd proposals «ill he received to and includii~~.~ ~hr
hour ol~ 9:3(? a.~n.. Pacilic I~,~~li~~ht I~in~c. ~~n ~~pri) ?(~08. at thr ~~I~lic~s ~~I~ the I~inanci:~)
~ldvistn~ to the C'hia> Unificci School f)istrict (the -~I)isU~icf~). Siunc ~~ Yuun~~bcr~~. I.I,C~w t.)nc I~cn-~
13uilclin~~, Suil~ ?7~, San I~ru~cisco, California 9-ll 1 1 (thr "I~in<<ncia) 11d~~isor~~), in the ~nann~r ~lcscrihccl
below, for the purchase ~~~~all, but not less than all, 01~.$30,725,000~ principal amount of Chico Unilicd
School District (Butte County, California) Election of 1998 C;eneral C}bli~~atic~n Cu~~rcnt Intcrest l3c~ntls,
Series l3 (ihc "13onds'~). Proposals may also be submitted by 1~» at the oi~liccs of the I~in:u~cial ndvisur.
or elecU~onically via the Parity t:lectronic 13id Submission System ("P/11Z1~I~Y') oi~ l~alcomp. a division of
Thomson ln(ormatian Services, Inc. (°Ihlla~mp~'), in the manner described below, for the purchase of all.
but not Icss than all, of~ $30J?~,000~ principal amount of ihc 13«nds. In the event that the sale has nut
been a»~arded h~~ ihc designated time, bids ~~~ill be received on each successive business da~~ thereafter. at
the same time and location until such time as ihc sale is awarded ur notice to the contrary is ~~iren,
1. Issue:
The Cm~rcnt Intcrest Bonds will be dated the date ul' dclirerv. will he in the dcnominatiun u1
$~_U00 each, or inict~,ral multiples therco~~. and ~~ill bear interest 1~ruin the date ul~ the Cm~rcnt Inicrc;t
Bonds to the maturit~~ of each of the Current Intcrest Bonds at the rate or rates such that the inlcrest rate
shall nut exceed _-"r~, per am~m», ~~ith interest pa~~able on I~~cbruarv Iw ?009 and scmiannuall~~ on
February 1 and i1u~~ust I of each year d~u~int~ the term of each oi~ the Current Interest {3unds. ~I~hc C~u~rent
Intcrest Bonds mature on ~1u<zust 1 in each ofthc years ?009 to ?0 ,inclusive, as lollo~~~s~
Principal
Year Amouut
l 1. Option to I?Iect Term bonds:
The purchaser n~iav elect to combine any number o(~a~nsecutive maturities oi~ 13unds fur ~~hich an
identical inlcrest rate has been spccilied t« comprise term bonds by indicatin~~ such an clcctic>n on the hid
form. I~he elcctiun to create term bonds in such manner will require the creation of a nr<uuiaturv sinl:in~~
fund so that the sinl:in~~ fund redemption payincuts shall cyual the cc>rrespundin~~ serial bond nr~turity
a111oUntS.
Preliminary, subject t~~ chan~~e,
n-1
Adjustment ol'Y-•incip~-1 ~1nu-uuts
The principal amounts of each nriturity of Bonds set (Drib above reflect certain assumptions of
the District and the I~inaneial .ncl~ isur with respect to the lit:cly interest rates of the ~~~innin~, hi~1 ~~r hick.
I~<~Ilo~~~in~, the dcterminati~~i~ «f~thc successf~u) hid~lcr ~~r bidders_ the Dish~ict rescn~c~; the right i~~ increase
ur decrease the principal amount ul~cach nr<-turity ol~thc Current Interest Bonds. in `~~,OOQ increments ui~
principal amounts. Such ailjustmcnt shall be made ~tithin ?6 hours uf~ the hid opening by the District.
upon rca>nuncndatiun of the Financial ndvisur. In the event of~ anv such adjustment. no rchi~idin~~ or
rccalculatiun ul~thc bids submitted will be required or permitted and the successful hid ur bids nriv not be
withdrawn, and the successful bidder will not be permitted to chan~~c the interest rate(s) in its hid I~~r the
bonds.
IV. Intcresi Rites; Ya~~mc^t of Costs of lssu<-ncc:
;111 bids fur the purchase ul~thc Current Interest Bonds must state the rate ter rotes of interest to he
paid and nu hid at a price less than the par value of the Current Intcresi Bonds_ Iu~,cthcr ~~ ith all accrued
interest thereon to the dale ul the delivery of the C~urrcnt Interest 13c~ncls, ~~ ill be considered. Bids n-ust he
at the par value of the Current Interest Bonds_ plus accrued interest. X111 Bonds ul~thc same nruurity mus(
bear the sank rate of interest and nu Bond nrn~ hear more than unc talc. The nuuin~um interest rate hid
nr-v nut ezceccl percent ( `%>) per annum, and the true intcrc>t crust ,hall nut exceed percent
( ~%) per annum. f3iddcrs may sprcify anv number of different rates to he borne un the C'urrcnt Interest
Bonds; all interest talcs must he in multiples of I/~i or I?t) of one percent: a reru talc of interest cannot
be specilied. Interest will be con-putcd un the basis of a 3G0-day year cot7sistin~~ ol~ 1? >0-da~~ ~nunths.
l~hc successful bidder will be required to deposit $ at closing with "I~hc Banl: uf~ Ncw
Yurl: Trust Company, N.~~.. and, by submittiu~~ its bid, ackno~ti~lydgcs and a,~recs to such rcquircmcnt.
~I~hc Bank ul~ New Yurl: 'Trust Company, N./1. will deposit such Funds in <- special account on behalf al'
the purchaser and apple such funds only to pay Ie~~all~~ aulhc~riicd costs of issuance un the Curren( Interest
Bonds pursuant to the ~~rittcn order of the District accrnnpanicd b~ apf~rolcd in~uiccs. This amount is in
addition to the purchase price paid for the Current Interest Bonds. 1'avment of this amount is nut
optional. Bidders should be careful to consider this additional cost in calculatin~~ bids.
V. Ilcdemptiou:
~I~hc Current h~tcrest Bonds maturing on or bcli7re August 1, ?0__ arc non-callable. ~Fhc Current
Intcresi Bonds maturing on August 1. ?C) , or any time thereaficr, arc c<dlahlc for redemption prior tip
their stated maturity date at the option of the District, in tvhc~lc on anv dale or in part un any Bund
I'avmcit Date, un e>r alter nugusi 1. ~0 , b~~ lot ~ti~ithin anv such maturit~~ if Icss than all u1~ the Current
h~terest Bonds ul~such maturity arc to be redeemed, at the redemption laricc equal to the principal anu~uni
ol~ the Current Interest Bonds to he redeemed, to~~ethcr with interest accrued thereon to the date of
reden~hliun~ payable from anv source la» hilly available therefor.
Vl. Notice of Redcn-ption:
Notice of redemption of anv Bond will be mailed to the fZc~~istcrcd O~~ncr t~C each Bund to he
redeemed in whole or in part at the address shown un the registration records maintained by the '1~he Banl:
of Netiv York 'I~rust Company, N.A., the Bond RegisU~ar designated 1in~ this issue of Bonds; such mailing
to he not more than 45 nor Icss than 30 days prior to the date set for redemption. Neither failure to
receive such notice nor any defect in anv notice so mailed shall affect the sufliciencv of the proceedings
for the redemption of Bonds.
~-~
V11. l~e~,isU•ation --f Bonds as l0 Principal and lulcrest and Place of Pa~~mcnl:
I~hc Ciu~rcnt lnicrest f3onds_ ~~hcn delivered, will be rc~,~isicrcd in the nan~c u1~ C'c~lc ~~ C'o.. as
nominee ol~~l'hc Dcpositcn-y Trust Compan}'. New York, New Yorl; {'-UI~C~~.). U~1'C gill act as securities
depository of the Current Interest t3onds. Individual p~u~chascs will be made in boos:-enu~~~ form oi~l~~, in
the denominations of ~>,OO0 and intc~ra) multiples thereof. Purchasers will nut receive ccrtiticates
representing their intcrest in the Current h~tcrest Bonds purchased. }'rincipal and intcrest arc payable in
lawful nu>ne~~ oC the lJnited States oh l~mcrica and will be paid to D~I~C which in turn will remit such
amounts to the beneficial owners of the Current Interest 13unds through D~fC~s Participants, us described
in the 1'rcliminarv Oi~ficial Statement.
VI11. rlutho-•ih':
~I'hc Current h~tcrest t3unds will be issued pursuant to the Constitution and laws ul~ the State of
California. The issuance ol~the Current Intcrest Bonds.vas authorised b~~ the rc~~uisitc l~~~o-thirds ur n~~orc
vote ofthc c~ualilicd clcctars ul~ihe DisU~ict votin~~ at an election held un t~pril 1-1. 199ti.
LX. Sccurit~~:
Both principal of and intcrest un the Current Interest Bonds arc payable from an uc/ r~rtu~~t~n~ tai
levied against all of the taxable prapcrty in the DisU~ict.
\. Form of laid:
~, prescribed form ul~ hid for the Current Intcrest L3rnxls has been prepared and is attached hereto.
Bids ma~~ he submitted h~~ scaled envelope. by fax, or clecU~oniallly via PnlZl~l~l', providing that the ~.~«od
faith deposit (described below) has been received. before 9:3U ~.M., Pacilic l)a~~li~~ht ~I~in~c un the date of
sale, to the District c/o Stone cS; Youngberg. LI.C, f)nc I~crrv 13uildin,~, Suite ??>. San Francisco,
California 9-~1 1 I.
For bids submitted by lax, neither the County of (3uttc (the "County'), the District. SU~adlin~~
Yocca Carlson ~& Rauth, a Professional Corporation, as bond counsel (the "Bond Counsel'), nor the
Financial Advisor take any responsihilit_y for any dii~licultics in receiving fax transmittals prior to the
deadline for receipt t>f bids. Neither the DisU~ict, the County. 13und Counsel, nor the Financial ,ldvisor
will accept responsibility for inaccurate or illegible bids. or for dcla~~ due to engaged telephone lines at the
place of bid openin~~, or for delay ~zrisin~~ out of any bidder's election to deliti~cr its hid by am~ n~cans.
1111 bids which are submitted clcctronically via PI~KfI~Y pursuant t« the procedures described
below shall be deemed to constitute a 13id for Purchase of the Current h-icrest ~3cmds and shall be deemed
to incorporate by reference all of the terms and conditions i~f this Notice invitin~~ Prop~>sals. The
suhmissian of a bid electronically via P111Z1"I~Y sha11 constitute and be deemed the bidder's si~~nattn~e on
the laid for Purchase of the Current h~tcrest F3onds.
XL Procedures IZe~;.u-ding haectronic Bidding:
t3ids may be submitted elccU-onically via P;~IZI~I~Y in accordance ~yith this Notice lnyitin~~
Proposals. until ~):0 ~1.M., Pacific Ua~~li~~ht ~I~imc. on npril - X008, bus no bid ~~~ill he rccci~cd aRcr
the time for rcceiyin,~ bids specilicd abucc. I~u the extent any instructions or ilirectiuns set 1~orth in
Pn1ZfI~Y conflict with this Notice Inritin~~ {'roposals. the terms of this \~~}ticc Inritin~~ 1'rop«sals shall
control. Fur further information about I'n1Zl"IY. potential bidder:; nay contact the District's Financial
:'~ -J
Advisor or PAKI"I~Y at Dalcump at (212) $06-8304. In the event that a hid for the Current Interest Bonds
is submitted via P/lRl~l'Y, the bidder further ~-~~.recs chat:
I. ~I~hc District nr-~ rc~~ard the clcctrunic transn-issi~~n of the hid throu~~h I',nltl~l`Y
(including information about the purchase price oi~thc Current Intcrest Bonds. 11-e interest rate or rates to
be borne b~~ the various nr-tru-itics of the Current Intcrest Bonds. the initial public c~l~l~crin~~ price oi~ c,~ch
maturity and any other iniurmation included in such transmission) as thc>u~~h the same inl~~~rn-,-tiun ti~crc
submitted on the Bid fur Purchase uf~ the Current Interest Bonds lurn-, hravidcd by the District anti
executed b~~ a duly autht~rircd signatory ~-f~ the bidder. 11~ a bid submitted electronicall} bti~ 1'nIZI~I~Y is
accepted b~~ the DisU~ict, the terms of~ the laid li7r Purchase of the Current ]merest Bonds and the Notice
Invitins~ I'ruposals and the information that is clectronica]Iv transmitted throu~~h P.n{ZI~I~Y shall lurn- a
contract and the successful bidder shall be hound by the terms of such contract.
?. P,nIZI"l'Y is not an a~.:cnt ufthe District. and the DisU~ict shall have no liability whatsoever
based un any bidder's use of~ P,~RI"I~Y'. including but not limited to any lailurc by P/\RI'I~Y to correctly or
timel}~ U~ansmit inlin-mation provided by the District oe inlormation provided by the hiddcr.
3. ~I~hc District may choose to discontinue use of clecU~onic hiddin~~ ~~ia P~1RI~I~Y b~ issuin~.z
a notiiicatiun to such rflcct via Pi11ZI~I~Y's intcrnct site (w~y~~~.tnu.com} no later than 3:00 P.M~ (Pacific
Da~~li~~ht `I~imc) on the last business da~~ prior to the date of,alc~
=l. Once the hills arc communicated electronically via P.~IZI~I~Y to the District as described
above. each bid wit) constitute a Bid for Purchase ol'thc Current Interest Bonds and shall be deemed to be
an irrevocable oflcr to purchase the Current Intcrest Bonds on the terms provided in this Notice hwitin~~
Proposals. I~or purposes of submitting all Bids for Purchase of the Current Intcrest Bond;. whether b}~
hand dchvery, facsimile or clcctronically via Pf1Rl"1'Y, the time as maintained on PAIZI'1'Y shall
constitute the official time.
~. l~.ach hiddcr choosin~~ to hid clccironicall~~ shall he sulcl~ responsible t~~ niakc neccssar~~
arran~~cment~ 1~> access P,~KI~I~Y f~~r purposes of submitting its bid in a timel~~ manner and in compliance
~yith this Notice In~itin~~ Proposals. Neither the District n~>r Dalcomp shall hay c any dut~~ or obli~~ation t~~
undcilal.c such rc~~istration to hid for any prospccti~c hiddcr car to hro~ idc «r a,surc such access to any
yualilicd prospective biddcr~ and neither the District nor Dalcomp shall be responsible for a biddcr~s
failure to rc~~ister to bid t>r for proper operation uf, or ha~~c ain liability lur un~ dcl,-~s ur intcrrupti~>n, ul_
or any damages caused bv, PnIZI~IY. l~he District is using.; P~iIZI~IY as a communication mcchanisn~. and
not as the DisU-ict's agent, to conduct the clcetronic biddin~~ for the C'tn~rcnt Interest Bonds. 13~~ usin~~
P~ItI'I~Y, each bidder agrees to hold the DisU~ict harmless for~any harm ur damages caused to such hiddcr
in connection with its use o1~ Pt\RI"hY for bidding on the Current Intcrest Bonds.
In the event that both an clccU-onic bid and a facsimile bid from a sin~~lc hiddcr arc received at or
prior to the bid receipt deadline. and to the extent that there is an inconsistcncv in the interest rates or
price bid, the facsimile shall he deemed to be the bid submitted. No hid recciycd after the deadline shall
be considered. h- any case, each bid must he in accordance ~~ ith the terms and conditions set forth in this
ul~licial Notice In~itin~~ Proposals.
Xli. I?stin~~-tc of True Intcrest Cosa:
Bidders arc requested (but not required) to supply an cstinr-tc ol~the total U~uc interest cost to the
District on the basis of their respective bids. which shall be considered as inlormativc only and not
bindin~~ on either the bidder or the Board uf'frustces of the District.
,~ -1
XIIt. 13id Chccl::
nll bids must be accompanied by a ~~ood (with clepc>sit (a "I)c~~~~sit"j in the form ~~f~ ~~ ccrti~ie~l
check, a cashier's checl: ur a financial suret~~ band (a "Financial Surct~~ Bond"} rcicrencing C`hicu Unified
School District (L3uttc County, California} l;lcction of 1998 General t)bligation Bonds, Series 13, in a sm»
equal to $50,000 pad-able to the order of the l~rcasurer-`I~rix Collector of the Count}' (the "~l~rcasurcr..), for
the benefit of the District. If a Financial Surety Bond is used, it must be From an insurance company
licensed to issue such a bond in the State of C'alilornia, and such financial Surct~~ Bond must be
submitted to the Count~~ ur to t3ond Counsel or to the financial tldvisor prior to the opening of`the bids.
Hach 1=financial Surety Bond must identili~ the bidder ~~~hose Ucposit is guaranteed b~~ such financial
Suret~~ Bond. 'I~he Count}', the District, Bond Counsel and the I-~inancial .nd~~isor assume no responsibility
for anc 1~ailurc ol~ a financial Surcf~~ Bond to list any bidder or to he rccei~ed un a timel~~ bads as
described herein.
If the Current Interest Bonds arc a~~~arded to a bidder usin~~ a ccrtilicd check or ceshicr~~ chccl.,
then such checl: ~~il) be held by the County i~ollo~~~in~~ the a~~~ard to the successful bidder. li~ after the
a~~ard of the Current Interest Bonds. the successilil bidder fair to complete it; purchase on the icrms
stated in its proposal the Ucposit checl: ~~~ill be cashed b~ the County and the proceeds thereul~ «ill he
retained by the County for the benefit of the Uisirict.
If the Current Interest Bonds arc awarded to a bidder using a I~'inancial Surct~~ Bond. then the
successful bidder is required to submit its Ueposil to the 'I~reasurer in the corm of a cashiers checl: (ur
~~~ire transfer as instructed b~~ the UisU~ict) not later than >:>0 p.m. (I'acilic Ua~~liv~ht Time) un the next
business day lollo~~ing the award. 1f~ such checl: fur ~~~ire h-ansicr} is not rceei~~ed b~ that time. the
I~inancia) Suret~~ Bond ma~~ be dra~~~n upon by the District to satisf:~~ the Ucposit requirement. In the cti~ent
the successful bidder fails to honor its accepted bid, the Ucposit ~ti-ill be retained b~~ the County for the
benefit ofthc District.
If the successful bidder completes its purchase of the C'urrcnt Intcrest Bonds cm the terms stated
in its proposal, its Deposit will be applied to the purchase of the Ciu-rent Interest Bonds un the date of
delivcrv oi~the Current Interest E3onds. Checks of the unsuccessful bidders ~4~ill be returned in persc}n at
the time of sale or by mail promptly alter the date of sale. No interest will be paid on the Ucposit made
by an~~ bidder.
XIV. CUSIY Numbers and Other Fens:
CI,-SII' numbers ~tiill be applied fur and ~~~ill be printed un the Current Interest (3unds and the cost
c>f printing thereof and ser~~ice bureau assi~~nment ~~ill be purchascr~s responsibilit~~. ~1nv dclati_ error ur
omission Stith respect thereto ~~~ill not constitute cause fur the purchaser to refuse to accept deli~~cr~~ cif
and pay for the Cm-rent Intcrest Bonds. l~he successful bidder shall also be required to pay n11 lees
required h~~ The Depository "I~rust Company. Bond Market ~~ssociatiun. Municipal Securities IZulcmal:in,~
Board, and any other similar entit~~ imposing a Ice in connection with the issuance of the Current Interest
t3onds (sec. "Califi~rnia Ucbt fldvisory and In~~eshnent Commission" belo~~~}.
XV. l~c~;al Opinion:
~('he Current Intcrest Bonds arc sold with the understanding that the purchaser ~~~ill be i~urnished
with the approvin~~ opinion of E3oid Counsel. i~ copy of the opinion iti-ill be attached to the Current
Interest Bonds. Said attorne~~s ha~•e been retained h~~ the District as Bond Counsel and in such capacity
arc to render their opinion only upon the legality ol~the Current Intcrest Bonds under California law and
,1-~
on the exemption of the interest income on such 13unds from Icderal and State of California incc~mc talcs,
I~ecs ol~ t3ond Counsel will be paid i~rom t3ond proceeds.
XV1. "1'a~-la.rcmpt Status:
In the opinion of l3und C'ounscl, under cxistin~~ la~~s, interest on the Current Interest f3unds is
exempt liz>m all present Slate of California personal ina>n~e taxes. and assun~in~~ c~>n~pliancc «ith certain
covenants made b~ the I)islrict_ interest un the Current Intcrest Bonds is nut includable in the gross
income of the owners o1~ the Current Intcrest 13uuds for Icdcral income tax purposes. provided that such
interest nri~ be includrd in the calculation for certain taxes. including the corporate altcrnati~~e minimm»
tas and the corporate cnvironmcntal tas. Should changes in the law cause 13und Counscl~s opinion to
chan~~c prior to delivery of`the Cm~rcnt Intcrest Bonds to the purchaser, the purchaser ~~~ill be relic~~cd ol~
its responsibilit~~ to pick up and pay for the Current Interest Bonds, and in that event its Deposit will be
returned.
XVtI. Certification of Rcof1'cring Yricc:
its soon as practicable, but not later than iivc days following the date of acceptance o1`the bid fur
the Current Interest 13onds_ the successful bidder must submit to the District a certiiiritc spccil~ying for
each maturity the rcol~l~crin~z price at t~~hich al least 10°~0 of the Current Intcrest Bonds ul~ such n~aturit~
~~erc sold fur ~~crc ofl~crcd in a bona 1~idc public offering and as of the date of aitard ul~ the Current
Intcrest t3unds to the successful bidder reasonably expected to be soul) to the public. Such ccrti~icate
shall be in ~urm and substance satisfactory to [3ond Counsel and shall include such additional inlurmatie>n
as may be requested h}~ Bond Counsel.
XVII1. rlwartl:
The Current Intcrest Bonds will be awarded to the responsible bidder suhmittiig the best
responsiyc bid, considcrin~~ the interest talc or rates specilied. ~l~hc hest bid will be the bid that represents
the lowest true interest cost ("'fIC~~) to the District for the Current Intcrest {3onds. ~I~he'I~1C is the discount
talc that. when compounded semiannually and used to discount all debt scryice payments un the Current
Intcrest Bonds teach to the dated date ol~ such l3unds, results in an <un~>unt equal to the price bid for said
Fonds. In the event that two or more bidders oli~cr bids for the Current Intcrest f3t>ids ai the same lo~ti~cst
l~l~`, the District ~~-ill dctern~inc b~ lottery ~yhich bidder will be awarded the Current lntcrest 13ouds. I~ur
the purpose ol~calculatin~~ thc'I~IC, the n~andator~ sinkin~~ fund pa}~n~cnts_ ifan_~~_ shall be treated as serial
maturities in such years. ~I'hc determination oCthe bid representing the lotiycst'I~IC will be made ~~°ithout
re~~ard to any adjttslments made cn~ contemplated to be made after the award by the ~I~rcasurer, as described
herein under "tydjustmcnt of Principal 1\nuxmts," even if such adjustments haee the cl~icct of raisin~a the
~l~(C of the successful hid to a Icvcl higher than the bid containing the next lowest TIC prior to adjustment.
~tX. 1)cli~~er~~:
Delivery cal~thc Current Intcrest Bonds will he made to the purchaser through D'I~C upon payment
in lcdcral funds payable to or lur the account ol~ the Disu~ict at the County of 13uttc, I rcasurcr-~1 ax
Collector. ?~ County Center Drive, Uriwillc, California 9~96~. The Closing will talc place at the offices
ol~ SU~adling Yocca Carlson & Rauth. a 1'rol~essional Corporation. -#-l Montgomery Street. Suite ~I~OU,
San 1=ranciscu_ California 9~~10<1. or at the purchascr~s request <u~d expense. at an~~ other place mutually
a~~rccablc to both the District and the pru-chascr.
ft-6
XX. t'rompt Award:
~Ihc ~I~rcasurer, or his desi~~ncc, at the direction of the District, will take action a~~ardin~~, the
Current ~itCrest Bonds ur rejecting all bids not later than twenty-sip (~'(i) hours alter the expiration of the
time herein ~~rescribcd fur the rccci~~t ol~ proposal;. unless such time of award is waived by the successllil
bidder. Notice of the atrard will be given promptly to the successful bidder.
XX1. C~ualification for Insurance:
~I`hc District has submitted information to municipal bond insurers for bidder's option purchase.
but such bond insurance would be solely at the discretion of the purchaser of the Current lntcrest i3onds
and payment of an}~ insurance premium and any additions-I rating agency fees would be an expense solely
of the purchaser <uui not the District. Satisfaction of any conditions to the issuance of a municipal bond
insurance policy shall be the sole responsibility of the bidder. luny failure of the Current Intcrest Bonds
to he so insured or ofam~ such policy of insurance to be issued shall nut in any way rclic~e the purchaser
uf~ his contractual obli~~atiuns arisin~~ (~ron~ the acccptancc ul~ his proposal to purchase the C'urrcnt Interest
13unds. li~ bond insm~ancc is purchased. the purchaser of the Cm~rcnt Intcrest }3onds must provide the
DisU~ict with the municipal bond insurance conunitmeift_ includin~~ the amount of the polio}~ prcmiun-, as
well as information Keith respect to the municipal bond insurance policy and the insurance provider for
inclusion in the final Ulf fetal Statement within two (? j business days following the <nvard of the Current
Intcrest [fonds by the District.
XXII. California Debt Advisory and L-vestment Commission:
l~hc successful bidder will be required, pursuant to state of California law, io pay any Ices to the
California Uebt and lnyestmcnt Advisory Commission ("CUI/~C"~). CDL~iC ~~~ill invoice the successful
bidclcr alter the closin~~ of the Current Intcrest L3onds.
XXI11. No Litigation and Non-Arbitra;;c:
The DisU~ict will deliver a ccrlilicatc stating that no litigation is pendin~~ affecting the issuance
and sale ol~ the Current Interest i3onds. ~I~hc District will also deliver an arbitra~~c ccrtilicalc cu~~crin~~ its
reasonable expectations concernin~a the Current Intcrest l3unds and the use ol~procecds thereof'.
XXIV. OI'licial Statement:
~I~hc District will make available a Preliminary Official Statement rclatin~~ to the Cm~rcnt Intcrest
F3ands, a copy oh which. alone with related documents, will be furnished upon request made h}~ toot) to
Stunt & Youn~~bcr~~, (.l,C. One I~crry f3uildin~~. Suite ??~. San I~rancisec~. California 9-11 1 1, the District's
Financial ,advisor for the Cm~rcnt Intcrest 13oids_ or telephoned to said Financial Advisor at dlti-~1~5-
? X00. Such Preliminary Official Statement. together with any supplements thereto. shall be in form
"deemed final" by the District l~or the purposes ol~ SI:C Kulc 1>c~-1?(b)(l), but is subject to rcti~ision_
amendment Bid COlllplelll)n 111 £1 lino) OIIICIaI StatG71ent. ~ he DIStI'ICt shall deIIVCI', al Closing. a
ccrtilicate, executed by appropriate ol~ficcrs of the District acting in their oi~ficial capacities, to the effect
that the facts contained in the Official Statement relating to the Current Intcrest Bonds an true and correct
in all material respects, and that the Oi~licial Statement dots not contain any untrue statements of a
material (act or omit to state a material fact necessary to make the statement therein, in light ut the
circumstances under which they were made, not misleading.
it -7
?C?CV. Coniinuin~; Disclosure:
In order to assist bidders in con~plyin~~ with IZulc 1 ~c?-I''(b)(?} prunuilgatcd under the Securities
Ftchan~~c r'1c1 0h 193-~, the District ~~ill undertake in a Continuin~~ I)iscli~sure Certificate t<~ pr~a~~idc
certain annual financial information and Notice of the occurrence of certain events, ih material. A
description of this undcrtakin~~ and a l~orni of the Continuin~~ Disclz~sm~c ~'erti~icatc is included in the
I'rcliminarv Official Statement.
X~V1. Katin~;s:
Standard ~~ Puur~s and ~-loudv's Investors Service have aysi~~ncd to the Current In(erest Bonds
the ratin~~s shown on the cover pa~~c oi~ tl~c Prclimin<lr~~ O1~ficial Statement or. if not su indic~ited, »ill be
available upon request i~rum the Financial Advisor. Such ratin~~s reflect onl~~ the vices ui~ such
organization and explanation of the si~~nilicancc ul~ such ratin~~s may he obtained from them as ~~>Ilows:
Standard & Poor's, ~~ Water SU'ect. New Yorh, New Yorl: 100.11_ (?1?) ~13R-?000: Muodv`s Investors
Service. 7 World 'I~rade Center at ?~0 Greenwich Street. New York, Ne~ti~ Yurl: 10007. There is no
assurance that the ratin~~s will continue for any given period of time or tht~t such ratin~~s will nut be
revised downward or withdrawn cntirel}~ by either of the rating a~~encics, if~, in the jud~~n~cni of~ such
agenc~~, circumstances so warrant. Any such downward revision or ~~ithdrawa) of such ratin~~s ma_~~ have
an adverse ehl~ect ~>n the market price of the Current Intcrest Bonds.
X~VI1. Iti~t~t tit' llcjection:
The County reserti~es the ri~~hi iu its discrvtivn to reject any ~~nd all hid, rccci~cd ~md to ~~ai~~c <~n~
irrc~~ularity ur informalit}~ in the bids, e~ccpt that the tin~c i~or recci~~in~.z bids shall he ol~thc essence.
X~VIII. ]2i~hi to Cancel, Yosfpone, or lZcschedule Sale:
l~he District reserves the right to crtneel, postpone or reschedule the sale oh the Current Intcrest
Bonds upon notice ~:,ivcn throu~~h the 131oomberg News Service, ~hhompson Municipal Markel Monitor
(«ww~.tnu.a>m} or 7/re /3orx/ I~uvc~r not less than twenty-four (?d) hours prior to the time bids arc to be
received. If the sale is postponed, bids will be received at the place sc[ forth above, at the date and time
as the District shall determine. Notice ui~ the nc~G~ sale date and time, if anti, will he ~~i~~cn throu~~h
f~loomber~~ News Service, 1humpson Municipal Market Monitor (www.tnu.cum) car 7Y~r 13unc/ 1>ure~r nu
later than i«enty-three (? ~} hours prior to the ne~~ time bids arc to be received. As an accununudatiun to
bidders, telephone or i~a~ notice ui~ the postponement of the sale date and of the ne~~ sale date will be
~~iven to any bidder requesting such notice I~mm the Financial Advisor. Failure of anv bidders to receive
such notice shall not ailcct the Ie~~ality ol~thc s~~le.
XXIX. Additionz-llnform~~tion:
Copies of the Notice Invitin~~ Proposals for Pw~chase of Bonds, the l~>rm oh hid, and the
Preliminary Official Statement rclatin~; to the Current Intcrest Bonds will be furnished to any bidder upon
request made to Stone & Youngberg. I,LC', Financial Advisor. Une hunch-cd (100) cupics ofthc O1licial
Statement will be made available to the purchaser without charge within seven business days ui~ the date
of sale and additional cupics will he pride available upon request at the purchasers c~pensc.
A-~
I)alcci: ~U08 C'III('O lrNlf~ll:l) S('11OOI. I)IS~I~IZIC`i~
far:
-_
>tcll~~ St~ilr~~
Suf~erintcncirnt
A -9
N01'IC'h: INVI'TINC Pt2t)NOSAL~ FO12 PUIZC11ASta: O1~' CAPI"i'~11, APP121?CIA'1'1O1~` 13t)NU!~+
CI IICt> UN11~11~:17 SCII(}(?I. DIS'I'IZIC1~
(13U~1~Il~: CUl!N~I 1'. C;1L11~OIZN1~1)
I~;I.I:C~IION Ul~ 1995 GI~:NI~:Ki~l. 0131.1(;:11-ION BONDS, Sf~:I~II~:S 13
NO~I~ICI: 1S I II:IZ1~,13Y GIVI~:N that scaled uncandititmcd proposals «~ill be rcccired to and inrl~itlin~~ tl~~
hour of 10a.m.. Pacific I)ayli~~hi 'l~imc, can A~aril ?008, at the «f~~iccs aI~ the I-~inai~cia)
.....---
Advisor to the Chico Uniiicd School District (the "DisU~ici~~). Stone ~ Youngber~~, LLt'. C)nc Ferry
t3uildin~;, Suitt ?7~, San 1=rancisco, California 941 1 1 (the "Financ:ial 1~dvisor~'). in the manner described
bclo~v. hot the purchase o1~ all, but not Iess than all. 01~ 4;30,725.000 principal amount oi~ Chita Unified
School DisU~iet (l3uttc County. California) l~:lectian ah 1998 General Obligation Capital t~pprcciatian
Bonds. Series 13 (the "13onds'~). Proposals ma~~ also be submitted br fax at the offices ol~thc 1=in<mcial
~ldrisor, ar elecU~anicallr ria tl~c Parit~~ I~:Icctranic laid Submission System ("PFIIZI~I~Y`~) af~ Dalcomp. a
division of ~I~hon~son Infornr~tic~n Scrriccs. Inc. ("Dalcump~~). in the manner described belo~r, [i~r the
purchase of aIL but not Iess than all, aI~ 530,72>_000~ principal amount of the Capital /~pprcciatian Bonds.
In the crcut that the sale has not been a~rardcd br the dcsi~~natcd lime. bids ~~-ill he rccci~cd r>n each
successive business da~~ thcreaf~tcr, at the same time and location until such time as the sale is a~rardal ur
notice to the cantrar~~ is ~~ircn.
Uetiniti~rns: 7~hc terms set forth belo~~~ ha~~c the folly»vin~; mcauiuhs:
~lrc•f~~~tc~~l Interc~s! means the difl~crcncc on a Ca~~ital ~lppreciatiun Bond, as ol~ the date of~
calculation. bet~~ecn its Dcnaminatiana) flniaunt and ii, nccrclcd Value. as these lcrms arc deiincd
bclo~~.
Jr~~r~~uun Ku~c~ means the talc .u ~~hich. ~~hen applied to ilic Denominational ~~n~ount ~~f any
Capital ~lpprcciation Bond and compounded scmiannuallr ail each I~ehruarr I and ~1u~zusi 1.
con~n~cnein~~ /~u~~ust 1, X008. produces the Maturity Value c>i> the n~zlturit~ date.
_lrcrcle~/ I'ulti~~ means, as o1~ the date of calculation, the Denaminatianal ,1nu7unt thcrcof~. plus
t~cereted htterest thereon semiannually at its slated ~ icld to said ealeulatian date, compounded
semiannually on each I~chruary 1 and 1\u~~ust 1, commencing 11u~~,ust I. ?008 at the stated ~lccreiion lZatc
to nrlturity, assumin~~ that within any such seminal period Accreted Value increases in equal dail_~~
amounts on the basis of a 360-day year of twelve 30-day m«nths.
C'u~~rlul ~1/,~u~~~c~rirttn~r Rc,ntl means a band ~yith i.cra statccl interest talc that accretes in yaluc on
the basis of its stated yield. compounding semiannually. as described abort under "~lccrctcd Valuc..~
Ih~rtr»ui~~r~ti~un~/ .~lmrn~~tt means the initial purchase price of any Capital Appreciation Bond at
~lhich it is p~u~chascd from the District by an undcr~~riter.
r1lu~tu•i1t~ G'crluc~ means the Accreted Value ufany Capital Appreciation Bond an its maturity date.
Prrliminar~_ subjrct to ch~in~~~~
,~ -10
7i•un,ef~~r:ln~uunt means. ~~~ith respect to an~~ Capital npprcciation Bond, the Maturity Value.
II. Issue:
I~he Capital npprcciation Bonds wit] be dated the date of deli~~crv, ~~~ill he in the Maturit~~ Values
ol~ $7.000 each, or integral multiples thereof. ~I~hc Capital npprcciation Bonds ~~ ill not bear current
interest but ~~~ill accrete interest, commencin~~, on their date ol~ deliver~~ (asstuttcd (~~~r purpc~5cs c>f a public
sale t« be held on npril -_ • ?008. to he Ma~~ ._,'008). f~rum their respecai~~e Denominational nn~ounts
to their respceti~~e 1~~1aturit~~ Values. lntcrest on the Capital appreciation 13unds maturin<~ ,nu~,ust 1 `'U
thri~u~~h f1u;~ust i. ~0 ~~ill c~>n~p«und each I~chruar~ I and ;~u~~usl I (each a "h~tcrest ~lcercii~~n Uatc~~).
c~~mnienein~~ ~1u;~ust 1.`'008. assumin~~ in any such ;en~iannual pcrii>cl that such ;~ccrctcd Value increases
in equal daily amounts on the basis <~~~ a 360-day scar ol~ i~~el~~c 30-dad mouilis. accreted Value is
pa~~ablc unl~ at nriturit~ or upon prior redemption of the Capital appreciation fiends. The ma~imun~
yield bid ma~~ not escced percent (-""~,} per anniun. The ~lccrcted Value u(~ each Capit<<I
npprcciation (3ond. respecti~~el~~, on caeh interest accretion date ~~~ill be specilied in << ~I~ahlc of accreted
Values to be prepared l~~y the purchaser of the bonds I~~Ilot~~ing the n~4ard of bids and appended to each
Capital apprecu~tion Bond.
The Capital npprcciation Bonds mature on i~u~~ust 1 in each o(~ the ~~c~u-s ?0 _ to ?0 inclusi~~c.
as iollu~~~s:
Den~~aminational
Matunl~ nnuumt
Year ~ (I'ro~i,iun~~l)
Yield to Maturil~~
Maturit~~ Value
111. Adjustment of Principal Amounts:
The Maturit~~ Values and corresponding Denominational anunmts of the Capital npprcciation
Bonds set forth aho~~e reflect certain assumptions oC Uistriet and the Financial advisor with respect to the
likely interest talcs of the «innin~~ hid or bids. l~iillc~~~in~,~ the detcrminalion ul'the successful hidclcr or
bidders, the District reserves the ri~~ht t~~ increase «r decrease the Maluril_~~ Values oi~ the Capital
npprcciation ~3onds in $x.000 increments o1~ Maturit~~ Value. Such atljusunent shall be made ~~ ithin ~G
Prcliminar~, subject to chair.
~-1 1
hours ul~thr hid oprnin~~ b~~ the District. upon rcconuncndation of the Financial Advisor. In the e~rnt ul~
an~~ such adjustment, nu rc~~iddin~, ~>r rccalculati~~n «I~ihc bids suhn~itted ~~ill be rcyuircd ~>r ~~ern~ittcc3 ~In~l
the successful hid or bids m<t~ not he withdra~~n, and the successful bidder Mill nut he permitted to
chan~,c the interest ratcts? in its bid for the bonds.
Iti'. ]nic-•cst hates; Pa~~mcnt of C--sts --f lssuancc:
l~hr nuilinnnn }~icld bid on the Capital Appreciation t3onds ma}~ nut r~crrd - percent (_ °4,)
per annum. Each yield bid must he <i multiple of 1/H or I/?0 of I°io. No Capital Appreciation 13und shall
accrete interest at more than one interest rate. x111 Capital Appreciation Bonds ol'the same maturit~~ shall
accrete interest at a sin~~le talc. Reof~(erin~~ Yield to investtn~s on each maturity. as linall~~ adjusted a; to
Maturity Value, must be rclx~rted to the District by the ~~~innin~a bidder, but rcuffcrin,.; _~~iclds arc nut a part
of the bid or the ati~~ardin~~ of the Capit~~l ~lpprcciation t3onds.
The succrsslLl bidder bill he rc~luirrd tip deposit `~ at clusin~~ ~~ilh ~I~Itc liaiil: of Nc~~
Yorl. l~rust Company. N.A.. and. hr subi~~itlin~~ its hid. achnu«Icd~~cs and a~~rcc~ to such reyuiremcnt.
~I~hc l3anh ol~ Nc~~ Yorl: Trust Con~pany_ N.A. ~~ill deposit such funds in a special account un behalf ul~
the purchaser and apple such Funds unl~~ to pay Ic~~all~~ authurii.cd cu:;ts of issuance on the Capital
Apprcciatitm 13unds pursuant to the ~~ritten order of the District accump~micd h~~ appru~rd in~uicrs. This
amount is in addition to the purchase price paid fur the Capital Appreciation Bonds. Pa~~mrnt of this
amount is nut optional. 13iddcrs should be careful to consider this additional cost in calculatin~~ bids.
V. IZcdemption:
~'I~hr Capital Appreciation Bonds «~ill not be subject to rcdcmhtit~n prior to maturity".~
VI1. Rehistration ol`Bonds as to Principal and Inte--est and Place of Pa~~ment:
~l~hr Capital Appreciation 13untls, when dcli~~crcd, will be rc~,istered in the name of Cede ~~ Co.,
as nominee of~ 'I~he Urpository ~I`rust Cumpan~, Nei+' Yorl:, New York (.~I) 1 C...). U~I~C will act as
securities depository of the Capital Appreciation Bonds. Individual purchases will be made in boot:-cntr~~
form only, in the Maturity Valor of $x,000 and intc~!,ral n~ultiplcs thcreol`. purchasers «ill n~~t rccci~c
certificates represcntin~~ their interest in the Capital Appreciation Bonds purchased. Principal, Acrretcd
Value and premium, if an~~_ arc payable in Ia~~Cul money of the United States of ~ln~rrira and 1~ ill br paid
to D~I~C ~~~hich in turn will remit such amounts to the benelieial utivncrs of the Capital Appreciation Bonds
throu~~h D~I~C~s Participants. as described in the Preliminary 017icial Statcnient.
VI11. Authority:
~I'hr Capital Appreciation 13unds will be issued pursuant to the Constitution and lags uf~thr State
ofCalilornia. ~I~hc issuance ul~thr Capital Appreciation 13unds ~~as authuriied b~~ the requisite t»~u-thirds
or more ~otc ul`thc qualilicd electors of the District l~otint~ at an clcction held un April 1 1, I~)4~.
Ir. Security:
Both Accreted Value of and interest on the Capital Appreciation Bonds arc payable from an uct
i~u/or~~ru tas levied a~~ainst all of the tasablc properly in the District.
A-1?
X. Form of Bid:
n prescribed norm of hid for the Capital ~ippreciatian lac>nds has been prepared and is attached
hereto. All bids must be for not less than all of the Capital ilppreciatian Bonds hereby afl~ered Car sale
and each bid shall slate the ti~ield to be used in calculating /lcereted Values for the Capital .nppreciatian
Bonds. cummcncin~.; on the date of their delitier~ (assumed I~~r purp«scs of a public ,ale to he held on
/~}aril _, ?008, to be May '008} from their respective Denominational flmount to their respccti~~c
Maturity Value. Mach bidder shall stale in its bid the Uenuminational ~lmaunts ii>r each maturity for the
Capital .nppreciatiun {fonds: ho~~ever. such inii~rmation shall he considered inl~~rmation only and not part
ol'the bid.
[aids may be submitted by sealed envelope, b}~ fax. or clectrt>nically via {'r11Z1"I~Y, providing that
the good Iaith deposit (described below) has been received, before 10 A.M., pacific D<<ylight Time on the
date ol~ sale, to the DisU~ict c/o Stone ~ Youn~~berg. LLC. One Ferri' l3uildin~;,, Suite ?7~, San l~rancisco.
California 9d1 1 1.
1=or bids submitted by 1as, neither the County of t3utte (the "Couni~~'~), the Uislrict. Stradlin~;,
Yocca Carlson & fZauth, a prolcssional Corporation, as bond counsel (the '"Bond Counsel°), nor the
Financial 1ldvisor talc any responsibility for any dil~liculties in rcccivin~,: fax tr~~nsiuiUals prior to the
deadline for receipt ai~ bids. Neither the District, the County. Bond Counsel, nor the Financial rldvisur
will accept responsihilit~ 1i>r inaccurate or illc~~ihlc bids, ar 1~~r delay due lu cn~,~a,~rd icle~~hanc lines at the
place of bid openin~~, ~~r ii~r delay arisin~~ out of any hiddcr~s clcction to dclit~rr it; bid b~ any n~cans.
/III l~~ids ~~hich arc submitted electronically via p,nIZ1~I~Y pursuant to the procedures tlescrihecl
belo~~ shat) be deemed to constitute a 13id for purchase oC the Capital ~ippreciatian 13unds and shall be
deemed to incorporate b~~ reference all ul~the terms and ccmditions c~>fthis Notice ln~~itin~~ Nr~>pasals. The
submission of a bid clcctronicallti~ via p,1R1"l~Y shall constitute and be deemed the bidder's signature on
the t3id for purchase of the Capital ~lppreciatiun Bonds.
X1. Yroccdures Regarding F:Icclronic Bidding:
Bids may be submitted elcctronicall~~ via P:11Z1"pY in accordance ~~ith this Notice ln~~itint~
proposals, until 10 n.M.~ pacific Dayli~~ht Time, on /lpril ___, ?008, bu[ no bid will he received after the
time for receivin~~ bids specified abo+~e, ~fo the extent any instructions ur directions set forth in pi11Zf1~1`
conflict with this Notice Invitin~.~ I'rt~posals, the terms ol~this Notice h~~itin~~ 1'rt~pusals shall control. I~ur
further inlormatiun about 1'.~Rf1~Y, potential bidders now contact the District's Financial advisor ur
pnlZl"fY at Dalc{imp at (? 1?) 806-830=1. In the event that a bid for the Capital ~~ppreciation Bonds is
submitted via PnIZI~fY, the bidder further a~~recs that:
1. ~fhe District may regard the electronic transmission oi~ the bid through I'nlZfl~l'
{including information about the purchase price of the Capital appreciation Bonds, the bond yields
established for the various maturities of the Capital appreciation i3onds. the iuitia) public ol~lcring price
OE each miltlll~ll~' and 8i1' (lthel' InlUrmat1011 InClUded In SUCl1 tran5misslt)Il~ as thOU~~~i thl' SamC Illfal'lilatltll1
were submitted an the t3id for purchase ai~thc Capital appreciation Bonds i~n~m, prarided b~ the District
and executed h~~ a dull authorized si~~nator~ oithc bidder. If a bid submitted clectronicall~~br p/~IZIi~Y
is accepted b} the DisU-ict. the terms o~~ the 13id for purchusc of the Capital appreciation Bonds and the
Notice In~~itin~~ proposals ~u~d the inl~~~rmalian that is clccU~t~nicall~~ transmitted through I'i~IZI~I~Y shall
form a conU~act and the successful bidder shall he bound b~~ the terms ul~such contract.
n-~~
?. PARITY is not an a~!,ent «fihc District, and the I~isU~ict shall ha~~e n~> liahilit~~ ~~~h~~tsur~cr
based on any bidder"s use of PARI"I~Y. including but not limited to any failure b~~ PAIZI"IY to correctly or
timely transmit information provided by the Uist~ict or information provided b~~ the bidder.
~. I'he District nrw choose to discontinue use of electronic biddin~~ t~ia I'nIZI~IY h~ issuin~~
a notification to such cl~lcct cia PARI~I~Y~s interact site (i~~4~~.Uns.com) nu later than 7:O0 P.1~1. (Pacific
Uavli~~ht ~I~imc) can the last bu~incss da~~ prior to the date ol~ sale.
4. Once the bids arc communicated electronically via PARII~Y to the District as described
above, cash bid wit] constitute a Laid for Purchase of~the Capital Appreciation Bonds and shall be deemed
to be an irrevocable offer to purchase the Capital Appreciation L3onds on the terms pro~~~ided in this Notice
Inviting Proposals. For purposes of submitting all Bids for Purchase of the Capital rlppreciatian }3onds.
whether by hand delivery, facsimile or elecU~onically via PAltl'I~Y, the time as maintained on PARfI~Y
shall constitute the official time.
~. Each bidder choosin~~ to bid elcctronicall~~ shall be solelt~ responsible to nial:c nccessar~~
<u-ran~~emcnts to access I'nIZI~1~Y for purposes ol~subn~ittin~~ its bid in a tin~el~ manner ~u~d in compliance
~~ith this Nutiee Invitin~~ Proposal:;. Neither the District n~~r Dalcon~p shall have au~~ dutt or ohli~~atiun to
undertake such rc~~istration to bid for an~~ proslacctive bidder or to pro~idc ur assure such access to an~~
qualified prospective bidder, and neither the District nor Dalcomp shall be responsible for a bidder's
failure to register to hid or for prufaer operation of~, or have any liability for any delays or interruptions of~.
or any damages caused bv, PAItCI~Y. "f~he District is usin~~ P~11Z1"I~Y as a communicati~an mechanism, and
not as the District's a~~cnt~ to conduct the clcctronic biddin~~ for the Capital Appreciation Bonds. 13~~ usin~~
PARI~fY, each bidder a~~rees to hold the District harmless for any harm or dama~~es caused to such bidder
in connection with its use of~ PAIZI"I~Y for biddin~~ on the Capital Appreciation Bands.
In the event that both an clectranie bid and a facsimile bid l~rc>m a sin~~le bidder arc rccei~~ed at or
prior to the bid receipt dcadfine. and to the e.~tent that there is an inconsistence in the interest rates or
price hid. the facsimile shall be deemed to be the: hid submitted. Nu hid received alter the deadline shall
he considered. In ane case. each hid must he in accordance ~~ith the terms and conditi~ms set forth in ibis
official Nuticc In~itin~~ Proposals.
~CI1. hatin-ute of True Interest Cost:
L3idders arc requested (but not required) to supply an estimate ol~the total true interest cost to the
District un the basis of their respective bids, which shall be considered as informative only and not
binding on either the bidder or the L3oard of "I~rustees of the District.
Xlll. 13id Check:
All bids must he accompanied by a good faith deposit (a "Deposit") in the («n» of a certified
check. a cashier's checl: or a financial surete bond (a "Financial Surety 13ond'~} rcferencin~~ Chico Unilicd
School UisU~ict (Butte Count}~, California) I~lection ~,~1~ 1998 General Obligation Bonds, Series L3, in a sum
equal to ~~O,000 payable to the order of the Treasurer-~faz Collector of the County {the " I~reasurer'~), fur
the benefit of the Dish~ict. If a Financial Surcty L3ond is used, it must be li~om an insurance a>mpany
licensed to issue such a bond in the Siate of California, and such Financial Surcty Bond must be
submitted to the County i~r to Bond Counsel or to the Financial Advisor prior to the openin~~ ol~ the bids.
(?ach financial Surcty Bond must identifw the bidder whose Deposit is guaranteed by such Financial
Surcty Bond. "I~he County, the UistricL L3ond Counsel and the financial Advisor assume no responsibilite
A-1-t
for any failure of a Financial Surety Bond to list any bidder ur to be received un a tinkly ba>is as
described herein.
if the Capital Appreciation t3onds are a~~ardcd to a bidder usin~~ a certified cheep ter cashicr~s
check. then such check ~~-ill be held bti~ the County followin~~ the a~~~ard tta the successful bidder. If~. <litcr
the award ul` the Capital Appreciation Bonds, the successful bidder 1~ails to complete its purchase on the
terms stated in its proposal, the Deposit check will be cashed by the County and the proceeds thcreol~ will
he retained by the County liar the bcnclit ufthc District.
Il~the Capital Appreciation Bonds are awarded to a bidder usin~~ a Financial Surct~~ Bond. then the
successful bidder is required to submit its Deposit to the Treasurer in the lurm of a cashier's check (ur
tit~irc tr~u~slcr as instructed br the District) not later than >:it) p.m. (I'acilic ~)a~~li~~ht 'I~i~nc) on the neat
business day fiallowin~~ the award. If such check (ur wire transl~erj is not rcecivecl b~ that time. the
Financial Suret}' 13und may he ch~a~ln upon by the District to satisl'v the Deposit requirement. In the event
the successful bidder fails k~ honor its aceeptecl hid. the Deposit will he retained by the County for the
benefit o1`thc District.
I1~ the successful bidder completes its purchase of the Capital Appreciation 13unds un the terms
stated in its proposal. its Deposit will be applied to the purchase ol~thc Capital Appreciation Bonds on the
date oi~ delivery ol~ the Capital Appreciation Bonds. Checks ol~ the unsuccessful bidders will be rct~u~ncd
in person at the time uf~ sale or b~ nu~il promptly alter the date of sale. No intcrest »ill be paid on the
Deposit made by any bidder.
X1V. Limit on t3iddc-•'s llisciruut
No bids will be accepted if the bidder's bid contains a discount in excess of _ °~~~ of the
Ucnominational Auunmt of Calaital Appreciation Bonds. And premium paid fur bond insurance will not
he included in the bidder's discount f~~r this purpose.
XV. CUSII' Numbers and tether Fees:
CUSll' numbers will be applied 1i>r and will be printed on the Capital Appreciation Bonds and the
cost of printing thercol~ and service bureau assignment will be purchaser's responsibility. Any <Iclav.
error ur on~issiun ~~ ith respect thereto ~~ ill nu[ cuustitutc cause for the purchaser to refuse 1o accept
delivery of and pay lur the Capital Appreciation Bonds. ~fhc successful bidder ,hall also he required to
pay all ices rcquiral b~~ ~I`hc Dcposit~>r} "l-rust Cumpan~~ 13und h1arl:ct Association. Municipal Sccuritics
lZulcmal:in~, Board. and <uw other similar entity i~nposin;~ a (ce in connection ~~ilh the issuance cif the
Capital Appreciation Bonds (sec. "California Debt Advisory and ln~~estmcnt Conu»ission'~ below}.
XVI. Legal Opinion:
The Capital Appreciation Bonds arc sold with the understanding that the purchaser ~~-ill be
furnished itiith the approving opinion of Bond Counsel. A copy of the opinion ~ti~ill be attached to the
Capital Appreciation L3onds. Said attorneys have been retained by the District as Bond Counsel and in
such capacit}' arc to render their opinion only upon the legality o]`the Capital Appreciation l3unds under
Califin~nia lacy and on the cscmption of~ the intcrest income on such L~onds I~ron~ Icderal anc) State of
California income ta~cs. Fees of Bond C'ounscl »-ill be paid from L3ond proceeds.
R-1_>"
XVI. Tax-Exempt Status
In the opinion oi~ 13on~1 Cuunscl_ under c~.i~tin~~ la~~s. intcrest can the ~`~~pital .npprcciation liui~~ls
is c~empt ii-om all present State uf~ California personal income lases. and as~~imin~~ cun~pliancc ~~ilh
certain cu~enanis made b~~ the District. intcrest on the Capital .~pprcciatiun 13uncls i5 not includable ii7 the
~~russ income uf~the u.. Hers ~~~~the Capital .lpprcciati~ui f3unds fur fcdcrul incun~e tai purposes. pru~idcd
that such intcrest nul~ he included in the calculation fir certain lases, ineludin~.! the cc~r~x~ratc altcrnali~c
minimum tas and the corporate cn~~ironmcntal tas. Should chan~~cs in the la~~ cause 13~~nd C'«unscl's
opinion to change prior to dcli~~cr~~ oi~the Capital /lppreciation Bonds to the purchaser. the purchaser ~~ill
be relicti~cd of its responsibility to pick up and pay for tl~c Capital ~ipprcciation Bonds, and in that c~cnt
its Deposit will be returned.
X~'lll. Certification of Neof~lering Price:
lis soon as practicable, but not later than fi~~c da~~s Iollo~~~int~ the date ~~f acreptancc oCthe bid f<>r
the Capital r~pprcciation 13onds_ the succcssllil bidder must submit to the District a certificate spcci(~yin,~
for each nulturit~~ the rcuf~l~criig price at «hich at Icasl 10°/> ol~ tlfe Capital flpprcciation f3unds of such
maturit~~ ~~crc sold (ur «cre offered in a bona fide public uf~icrint.! and as of the date t~f ~~ti~ard c~i~ the
Capital npprceiation 13unds to the successful bidder rcast~nahl~~ cspectcd to be sold) to the public. Such
certificate shall he in form and substance satisfactor~~ to 13und Cormscl and shall include such additional
information as ma~~ he requested b~~ Bond Counsel.
XIX. Award:
l~hc Capital Appreciation E3unds will be awarded to the responsible bidder submittin~~ the best
responsive bid, considering the intcrest rate or rates spccifial. the ~~icld or }~iclds to nulturity. the discinint
shccificd. and any bond insurance premium. ~I~hc hest bid ~~ill be the hid that represents the lo~~~cst true
intcrest cost ("ll("') to the District for the Capital Appreciation Bonds. ~l~hc TIC` is the discount rate that,
when compounded scn~i~mnually and used to discount all dclat service payments un the Capital
Appreciation Bonds hacl. to the dated date ul~ such 13unds_ results in an amount equal to the price bid for
said Bonds. h~ the event that t~~u or more bidders offer bids fur the sank Bonds at the same lu~~~est TIC.
the Dish~ict ~tiill determine hr lottery which bidder Gill be ai~ardcd the Capital Appreciation L3unds. For
the purpose oi~calculatin~~ the ~IiC`, the mandatory sinkin~~ fund pa}'»>c~~ts, ifan_~~, shall be treated as serial
maturities in such years. ~I~hc determination of the bid representing the lu~~cst TIC will be made ~~ ithuut
rCgal'd t(7 any 21dfUS1111CntS madC t)f COl1tCn1plalCd l0 bC n1adC aftCl't114 alVard b}' the 1 I'C<iSnrCl', as dCSCI'Ibl'd
herein under `"Adjustment of Principal Amounts," even if such adjusUncnts have the ef~fcct of raisin:, the
TIC af~the successful bid to a Ieve) higherihan the bid containing the nest lowest "I~IC prior to adjustment.
XX. Uelivcry:
Delivery of the Capital Appreciation 13unds ~~ill he nrulc to the purchaser thruu~~h D~fC upon
pa~mcnt in Icdcral funds payable to or for the account of the Disll~ict at the C'uunt~~ u1~ f3uttc, ~I'rcasurcr-
~fax Collcctur, '~ County Center Dri~~c_ Uruvillcw California 9~9C>~. ~I~hc Closin~~ Mill take place at 117e
offices ui~ SU-adling Yocca Carlson ~~ IZauth. a I'rofessiunal Corporation. -1~{ i~'luni~~omcr~~ SU~cct. Suite
4?00, San Francisco. California 9=110-1. or at the p~u~chascr~s rcyucst and espensc. at an_~~ other pl<~ce
mutually at~recablc to both the District and the purchaser.
,1-16
XXI. f'rom~~t f1~~~ar-L•
l~he ~I~reasurcr, or his clesigncc_ at the directior~~ ol` the DisU~ict, will take action a~~<u-ding the
Capital ,Appreciation Bonds or rejecting. all bids not later than twenty-sis (26) hours after the expiraUun ol~
the time herein prescribed for the receipt of proposals. unless such time of award is wait~cd b~~ the
successful bidder. Notice ufthe award will be given pr~7~r~ptly to the successi"u) bidder.
YXII. Qualification fo-- Insurance:
~l~hc ~7istrict has submitted information to municipal bend insurers for bidders option purchase.
but such bond insurance mould he solely at the discretion of the purchaser of the Capital /\ppreciatiun
Bonds and pil)'mCllt l)~ IlnV' InsUfanCl' prl'llllllln and and' addltluia~ faun,.? £I~?,CnC~" ~CCS \lC)U~d be 8n e.Apl'11Se
solely oi~ the purchaser and not the District. Saiisiaction oi~ nn~~ conditions to the issuance of ^ municipal
bond insurance police shall be the sole responsibility ol~ the bidder. ,Any failure of~ the Capital
appreciation Bonds to he so insured or of any such police o1~ insurrtncc to he issued shall nut in any w~ty
relieve the purchaser of his contractual obligations arisin~~ t~rum the acceptance of~his proposal to purchase
the Capital /lppreciation Bonds, If bond insurance is purchased, the purchaser of the Capital
Flpprcciation Bonds must provide the District with the municipal bond insurance commitment, includin~~
the amount of the policy premium. as well as information with respect to the municipal bond insurance
policy and the insurance provider for inc]usion in the final Oi~iicial Statement within two (?} business
days li~llowin~~ the award of the Capital llppreciation t3onds by the District.
XX[ll. Cr-liti~rnia Ucbt Ad~~isor~~ anal In~~estmcnt Commission;
~fhe successful bidder ~yill be ree~uired. pursuant to state of California law, to pay <u~y fees to the
California Debt and h~vestment ~ldyisory Commission ("C`DI.AC"j. C`U1~1C will invoice the successful
bidder after the closing ul~the Capital /lppreciaiion Bonds.
X?~IV. No Liiigaiion and Nou-Arbitrage:
1`he District will deliver a certificate stating that no liti~~ation is pendin~~ affectin~~ the issuance
and sale of~the Capital npprcciation Bonds. "fhe District will also deliver an arbitrage certificate cs~~crin~~
its reasonable czpcctations concerning the Capital Appreciation E3onds and the use of proceeds thereo~~.
XXV. Uflicial Statement:
The District will mal:r available a I'reliminarti Official Statement rclatin~~ to the Capital
Appreciation Bundy, a copy ul~which, alum, with related documents, ~~ill he Ilirnishcd upon rcyuesl made
by mail to Stone ~~ Youngberg, FI.C. Une I~crry Building. Suite 27~_ San Francisco, California 941 I I_
the Districts Financial Advisor for the Capital Appreciation Bonds. or telephoned to said Financial
Advisor at 415-445-2300. Such Nreliminarv Ol~licial St<itcment, io~~ether with any supplements thereto.
shall be in form "deemed final"' by the District for the purposes of SFC Rule I Sc2-12(b)(I }. but is subject
to revision, amendment and completion in a final official statement. The District shall deliver. at closin~~_
a certificate, csecuted by appropriate uf7icers of the District acting in their ol~iicial capacities, to the effect
that the facts contained in the Official Statement relating to the Capital Apprecinlion Bonds arc true and
COrI'Cet In 8~~ n1atC1'la~ CCSpeclS, <Ind that the Oj~lcla~ ~le1tCn1Cnt dOCS nOt contain a~iy UntrUC StatCments C)~ a
nlaterla~ fact Or Olllll lO titatC a n1atC1'la~ fact nCl'CSSaI'~' l0 111a~C the statelilent t~ll'1"Cln~ In ~I~.',ht Of the
circun~stanccs under which they were made, not misleadin~.~.
A-17
XXV1. Continuing Disclosure
In order t« assist bidders in complying ~tiilh Rule I Vic?-1?(b)(5) promulgated under the Securities
k~:zchan~~e ~rict ~~1~ 19i-t. the I)isU~ict »~ill w~dertal:e in a C'~~niinuin~~ I~iscl~~sw~c Ccrti~icate tc> E~r~~~~idc
certain annual linancial infurnr-tiun and Notice of the occurrcncc of~ certain events. if material. n
description o1~ this undertal:in~.; <-nd a li>rn- of the C'oniinuin~,~, ~)isclc~srn~c Certilicatc is included in the
I'reliminarv Uf~licial Statcmcnt.
~'~lV~~. ~~~1~Iilgs:
Standard c~ Poor's and Moody~s Investors Service have assigned to the Capital npprcciation
t3onds the ratings shown on the cover page of the Preliminary Oi~licial Statement or, if not so indicated,
will be available upon rcqucst from the Financial ,ldvisor. Such ratin~~s rellcct onl~~ the ~~icws of~ such
organisation and czplanatian of the si~~nificancc of such ratings ma~~ be obtained 1~rom them as 1<711ows:
Standard ~~ Poor"s.» Water Street. Ncw Yorl:. New Yurl: 10011_ (?1?) 4?8-?U{?U; Moodv's Investors
Service, ? ~~'urld ~Iradc C~cnicr at ~~U Greenwich Street. '~~cw Yurl:_ New York 1U007. l~herc is nu
assurance that the ratin~zs ~~-ill c~~niinuc f~~r any ~~i~~cn pcri~~d ~,I~ time ~>r that such ratin~~s ~~ill nut hr
rc~iscd doivmvard or ~~ithdraun rntirely h~ either ul~ the ratin~~ a~~cncics. il~. in the judgn~cnt ul';uch
a~zcncv_ circun-stanccs so warrant. r1nti~ such duwn~~ard revision or i~ithdrawal ul~ such ratin~~s ma_~ have
an adverse el~fcct un the marl:ct price ufthc Capital /\ppreciatiun Bonds.
XXV Il I. light o1' Rejection:
I~hc County rescrvcs the ri«ht in its discretion to reject any and ~-II bids received and to ~~aiti~c an_~~
irre;~ularit}' or informality in the bids, czcc}~t that the time for receiving bids shall be ol~thc essence.
XXIX. Right to C~uuel, Postpone, or Reschedule S~~Ic.
~Fhe District rescrvcs the ri~~ht to cancel. postp~~nc or reschedule the sale of the Capital
/~pprcciation Bonds upon notice ~aiven thrau;~h the 131oomhcr~~ News Scr~~icc. ~I~humps~-n Municipal
Marl:ct Mc}nitor (w~rw.tm>.cum) or 7Yre l.~oncJ 13u-~c'r nut less than ttivcnty-four (~-1) hours prior to the time
bids arc to be received. Ifthc sale is postponed, bids will be received ut the place set forth above. at the
date and time as the District shall determine. Notice o1~ the new sale date and tine. if anv_ ~~il) be v~ivcn
thruu~~h L31oun-bcr~~ Nc~~s `~crvicc. ~i~h~>n-pson i~1unicipal Mar{.cl ;~9unitur (~~~~~~.tm ~.cutn) or ~7~~~ hr~~r~l
13u-°er no later than twcnt_v-three (? ~) ho-u~s prior to the new time bids are to be received. !is an
accommodation to bidders, telephone or fas notice of the postponement ol~ the sale date and of the new
sale date will be given to any bidder requcsiing such notice from the Financial ,'ldvisor. Failure of any
bidders to receive such notice shall not al~l~ect the legality of the sale.
XXX. Additional Inforn~r-tion:
Copies ol~ the Nutirc ln~~itin~~ I'rupusals 1~>r I'urchasc of~ liunds. the li>rm ul~ hid. and the
Preliminary Oi~ticial Statcmcnt rclatin,~ to the Capital r~E7prcciation 13unds gill be furnished to any bidder
upon rec~ucst made to Stunc t~ Yuungbcr~~. I.LC_ Financi~d rldyisur. Uuc hundred (100) copies of the
C)fficial Statcmcnt will be made available to the purchaser ~~~ithout charge within scycn business dais of
the date ol~salc and additional copies will he made available upon rcqucst at the purchaser's cspcnse.
r~ - 18
Uatcd: . ~'U0~ ('I IIC'O UNll~lf~:l) SC'I IUOL I)1Sl~IZ1(`I
f3~~:
--
hcll~~ Stalc~
S~iprrintcnclcnt
l~- 19
I;XI llf3fl~ [3
1311) l~OIZ ~I.1ll~: PURCI1nSl: t)I~
C'IIICO UNII~II:D SC'IIOOL DIS~I RICI~
(f3U~l ~I l~. ('t)UN'I~Y- t'!~I.ll~OIZNIn)
I~:L1~:C~1 ION OI~ 19~)~; C;1~.NI:IZ~~1. 0131.1(; ~~I IOi~ C~!I~KI~.N"I~ INl1~:IZI:SI~ 13(7V'U5- S1~:IZII~:S 13
. `'UUK
Chico Uniliccl School DisU~ict
13uttc C~ount~~. Calif-urnia
t)n behalf of a ~~roup which ~~~c have 1i~rmed consisting of-:
_ --_
anti pursuant to the Notice In~~ilii~~~ I'r<~~~osals 1~ur Purchase of 13ond5 hereinallrr n~~ntioncd> >~c oii-er t~~ hurchasc ull of~thc
Dollars (`~ _) principal amom~t of the Bonds dcsi~~nate~l as "Chic~~ tlnilic~l Sch~~~~l
__
District (Butte County, California) Election ol- I~>98 General Obligation Bonds- Series 13." n~aturin~~ can ,1u~~ust 1 in the
years and amo~mts and hcarin~~ interest at the rate or r~~ics set lurlh in the follu«in~~ schcdulr:
Principal Intcresl
Year t~nunmt~ Rate
1»surancc
and to pay therefor the aggregate sum of ~ {representin~~ the `~ principal amount of- the
--
13onds, plus bid premium of $_ _, plus interest accrued on such E3onds to the, date of dcli~~cry thereof).
We hereby elect to combine the maturities oE~ E3onds maturing on the following dates to comprise term bonds:
IZcdcmption I_)atcs Matur~t~~_I_~~ite
throu~~h 1-
._ --
through _ 1.
- - --
throu~~h 1,
__ -
-his hid is submitted with our intention to purchase municipal bond insurance f-rom (till in il-
__
applicable). Such insurance will be obtained at our expense.
~Prcliminar~~, subject io chan~~e. Sec "I11. ~dju5tment ~~f Nrincip~~) ~lmounis"' in the Notice Invitin<~ Pr~~p~~als fin- 1'urch~~sc o1 13~~nci,.
C3-I
This hid is nuidc subject to all the terms and conditions of the Notlt;C Iitiilin,~ Proposals i«r I'urchasc of Bonds hcrct~~f~>rc
published, all of ~lhich terms and condition; arc made a part hereof ~~, f~ull~~ as though set forth in full in this hid.
~~s spccilicd in the Notice Inviting Proposals for Purchase of t3onds~ this bicl is subject to acceptance not later than ~6
hours a(tcr the expiration of the lime for the receipt of~ bids, and the opinion o1~ Stradlin~~ Y~~cca Carlson c~ IZ~iuih. a
Professional Corporation apprcwing the validity of the 13unds ~4il) be furnished us (if we arc tl~c successful bidder) at the
time oCthe delivery of the t3onds at the expense of`thc District.
~I~herc is submitted herewith a memorandum (which shall not constitute a part ol~this bid) stating the total true intcrest cost
in dollars on the Bonds durin~~ the li(c of the issue under this bid, and the true inti:rest talc determined thereby.
~~~c ha.c rccciycd and rcyie~~cd the Preliminary OI~ficial Statcmcnt with respect to the 13unds (the "Preliminary Ul~ficia)
Statcnnnt~~) and as a condition to hiddinw ~~n the 13unds, hair determined that ~~c can cuinpl~~ ~~ilh th~~ rec~uircn~cnts uf~
Rule J ~c?- I ~ of the Sccuritic; and I~:~chan~~c C'ommissi~~n under the Securities I•:~chau~~c ,pct ul~ I ~)_; 1. as an~cnded.
.ns ol~thc dale ofaward and as of the date ofdcliycry of the Bonds, all members ufuur syndicate citl~~er participate in D~I~C'
oi" CIl'al' LhrOU~..?~1 OI' Illalntaln fl CUtit(1dIIl~ I'C~ilUOntihlp ~1'Ith all Cnlih" lhal parllClpalCS Ill tiald dCpCltiltl~l'~'.
~~'e hereby request chat (not to exceed 100) printed copies of the (}fficial Statcmcnt with respect to the
~~onC~S be fUl'111Sf1ed to US In aCCOI`danCC ~ylth the tCI'i11S of if1C NotiC;C ~nb'llln~~, ~~rl)p(1Sa~5 ~Or t~1C ~~UfChatiC O~ ~3t)nC~S.
IZcspectfully submitted,
Nano:
- _ (~iccount R~iana~~cr)
13~~:
~lddress:
City: Stale:
1'honc:
131D Cf II:CI~ (check oncj:
"I'hcrc is enclosed herewith a certified check or cashicr~s check referencing Chico Unified School District (13uttr
Count.'. ('alitornia) I~:Iection of~ 199R (~cieral Obligation 13onds_ Series l3. in the amount .b payable to the
order of the 'I~rcasurcr= fax C'ullector of I3uttc County. for the bcnc[it of the District.
~~/c hayc provided a financial surety bond rclerencin~~ Chico llnii~icd School District (I3uttc County, t'alifornia)
l~;lection of l~)~)ti General Obli~~ation l3und,_ Series 13, as prot~idcd in the Notice In~~itin~~ I'rupusals for I'urch~lsc u(
Bonds.
MI;MUIZnNUUM t)I-~ INI~I:IZI~:SI~ Ct)Sl~: Under the above hid. the total true interest cost on the Bonds durinta the life of
the issue is $ and the true intcrest rate deicrn~inctl thereby is _ _`%
13-2
iiin r~>i~ ~rE i~: Puiici ins,: ~~r- x
CI IICO UNll~II~U SCII(X)1, UIS~I~IZICI~
(13U~f~1~1: Ct)UN~fY, C:1LII~UIZMi~)
1-:LI~:C~I~I(>N OI~ It)9S Gk~:NI~:IZill. t)131.IGn'I~I(?\ t'~11'I~f,~l, nPPIZI~:C`1:1~I~IUN 13ONI)S. SI:IZII~:S 13
~QO~
Chico tli~ificd School 1)ISII'ICI
13uttc County, California
Un bchalfofa group ~-~=hick ac have iorm~d consistin~~ of~:
and pUrtiUant to l~ll' Nl)IICI' ~nl'111n~_' PI`ttp(tsa~s for Plll`l'haSe (l~ ~ aplla~ ,1p~~reCIaUC~n ~~onl~s heI'ClnallCl` nlCilll(lllCd_ eve
octet to purchase all ofthc ~~lillion Dollars (~ ) I)cnominatic~nal Amount ~~I~thc Capital
,~~pprcciaiion Bonds dcsi~~natcd as "Chic~> ll»ific~l Schu~71 UisU~ict (13uttc C~~unt~_ California} l~:lcclit~n ~~(~ I~)~1S
General Ohli~~ati~~n Capital ,1ppr~ciation Bonds. Series 13,~. mat~n~iifz un ,~1u~~ust in the _~c~u~s and am~~unts anti
hcarin~~ interest at the talc ur talcs set I~~rth in the fc~ll~~~~in~a schcdnlc:
Maturity t~cnominatit~nal
Year ~'lmount Yield to Maturit~~
~,1u~aust I) (Provisional Mtituritr Insui~ancc Value*~
at a total purchase price equal to `~ _ (rcprescntin~~ the $ _ ag~~rcgatc Ucnominati~~nal
amount of the Bonds, Icss undcr~~ritcr~s discount (not to c~cced '%~ oi`thc I)cnominational ,amount of the Bonds)
c~ (` `~ ).
This hid is submitted ~~ith our intention to purchase municipal bond insurance from (ii(I
__
in ifapplicable). Such insurance ~~~ill he obtained at our c.~pcnsc.
I'rcliminary~, subject to change. Sec "III. ,ldjustment of Principal amounts" in the Notice Invitin~~ Proposals i~or 1'urch~~s~ t~i~
C`urrcnt Interest Bonds.
13-3
This hid is made subject to all the terms acid conditions of~ the Tti!otice Invitin~~ Proposals li»~ Purchase o1~ 13oncls
herctof~>rc published, all of ~~hich terms 4nu1 conditions arc made a part hercol~ as fully as thuu~~h set li~rth in Gull in
this bid.
as specified in the Notice In~~itin~~ I'roE~osals fin N~n~chasc of~ Bonds, this bid is subject to acceE~tancc not latrr than
?b hours oiler the expiration ol~thc time I~~r the receipt oi~hids. and the opinion of ~tradlin~; Yucca Carlson ~t Routh.
a Professional Corporation approvin~~ the validity ol~thc Bonds will be furnished us (if~~e arc the siicccssfu) bidder)
at the time of~the delivery of the Bonds at the expense of the District.
~I~hcrc is submitted hcre~~~iih a memorandum (which shall not constitute a part ol~ this bid) statin~~ the total true
interest cost in dollars un the (3onds durir~~ the lilt of the issue under this hid. and the true intcrest rate determined
thereby.
ti~'c ha~c received and rcvie~~ed the Preliminary Official Statement with respect to the Capital appreciation Bonds
(lhc "Preliminary U1~ficiu) Staicmcnt~~) and as a condition to hiddin~.~ un the Capital ,npprcciation Bonds. have
determined that ~~'c can comply ~yith the recfuircments of lZule I ~c2-I? of the Securities and Iachan~~c C'on~mission
under the Securities l~~chan~~c act ~~i~ I ~?3~, as amended.
as of the date uf~ award and as of the date of delivery of the Capital appreciation Bonds. all members of~ our
syndicate either participate in D~CC' or clear throu~~h or maintain a custodial relationship ~~ith an cntit_~~ that
participates in said depository.
~~e hereby recfuest [hat (not to exceed 100} printed copies of the Official Statement iyith respect to
the Capital appreciation Bonds be furnished to us in accordance ~yith the terms of the Notice Invitin~~ Proposals li>r
Purchase of Capital appreciation Bonds.
IZespectfull} submitted.
'\ame:
(account [Y1ana!~er)
f311 CI IF:Ch (ehccl: one):
13y:
address:
City:
Phone:
State:
l~hcre is enclosed hcrc~~ith a certilicd cliccl: or cashiers check rcicrcncin~~ Chico Unilicd School District
Capital apprcciatic~n Bonds in the amount $ p~lyable to the order of the Treasurer-fax Collector of
l3uttc County.
We have provided a financial surety bond rclercncing Chico Unified School District Capital appreciation
Bonds as provided in the Notice Inviting Proposals i~>r Purchase of Capital appreciation Bonds.
N1LtilOIZaNUUM OI~ IN~11;IZf;S~I~ C:OS~I~: under the
appreciation Bonds during the lilt of the issue is $
o/~
above bid, the total true intcrest cost on the Capital
and the true intcrest rate determined thereby is
t3-~1
I~:XI1113f1~ C
NO"I~ICF UI~ IIti~~FFN~fION 'fO SI;I.I, CURKI?~'1' IN'I~I:IZFS'I' l3ONf)S
$30,72~,000~
CI IIC'O UN11~ II~:I) SCI I(X?I. I)IS'I~IZIC"I'
(l3U~l~~l~l~; CC)IJR~fY_ Cnl.lhORNIA)
I;I,FC~I~IUN OI~ 1998 GI~:NI~,R.AI, 0131.1(;i~'1'ION ~3ONI)S. SI~;IZII~;S l3
NU~I~ICI~; IS IIl:R1;13Y GIVFN that the Chico Unified Schu«I I)ish~ict {ihc "I)istrict~~)_ in l3uttc
County, California, intends to of~l~er (or public: sale on , 2008. at the hour of 9:iU ~~,m. al
the office of Stone ~ Youn~.;ber~~ (.1.C, One herr}~ 13uildin~~. Suile `?7~. San Francisco. California ~)-11 1 I
not to exceed $30.72~_000* principal amount c}1~ general obli~~atiun current interest bonds ~~f the 1~isU~ict
drsi~,natcd "Chic~~ Unilicd Sch~>ol t)istrict (l3uttc County. California) I~;Icrtiun c>f~ 1998 Genrral
Ohli~~ati~~n I~cmds. Series 13 (the "13onds~'). ~'~'iihin ?6 hours, tl~c ~l~rcasurcr-~fa~ Colicct~~r of l3uttc
County, in conjunction ~~~itl7 the Superintendent of the ~)istrict_ bill consider the bids received and. if
acceptable bids arc recci~cd. ~l~~ard the ;ale of the Current Interest Bonds can the basis of the true interest
cost. In the e~~cnt that no bids arc a~~ardccl h~ the dc~i,~natcd time. proposals ~~~ill he received the
fOlll)llln~? bLltilnetiti llaV al 1hC yaI11C IIInC antl hlaCl' tipl'CIjICCI abl>\l' and C11Ch bUtilnl'Sti Clati th~l'Ca~1Cr Un11)
such time as bids arc a»arded or notice to the contrary is ~~iccn.
NO~flCl; IS III:R1?13Y I~U1~~1~111~:}t GIVI~;N that the Bonds l~~il) be ol'I~cred for public sale subject
to the terms and conditions of the Notice Inyitin~; Bids for the Bonds. dated .2008. ran
~.
Official Statement and Notice (nvitint~ Bids rclatin~~ io the (3onds will be I~urnishcd upon request mailed to
Stone c~ Youngberg LLC, One berry 13uildin~~. Sufic 275, San Francisco. California 9~1 11, the linancial
consultant tc~ the [)istrict for the Bonds.
t)ated: .2008
CIIICO UN11~1F.1) SCI IOOI. I>IS~I~IZICI~
13y:
__ _ _ __
Kelley Staley
Superintendent
Preliminary, subject to chan~~e.
C-I
NOI~I(~I: OI~ IN~II~:NI~ION fO SI:I.I. C',1P11~,~1..11'I'IZI~:C1~11~1ON 13ONIS
`ti0.??~,U00
CI IIC(? UN11~II:D SCIIOUL UIS~I~IZ1C~1~
(13U1`~I~I~: COUN~I~I`. CnLll~t)IZNIn)
1a,1~;C`I`IUN Oh 1995 Gb:N1~:R~L Of31,IGi~~I'ION ~3UNUS, SI:1~Il~:S 13
NO"MCI: IS IIFRI~~3Y GIVFN that the Chico Unilied School District (the "District°}~ in l3uttc
C'ount', California, intends to ol~lcr for public sale on __-___. 2008, at the hour o1~ 10:00 a.m.
at the ofiicc of Stone c`~ Yo~m~~ber~~ LLC. Une I~err~~ 13uildin<~, Sure 27~. San Francisco. California 9-~ 1 1 1
not to c~cccd `h30,72~,000~` principal amount of general obli~,atiun capital appreciation bonds of the
District dcsi~~natcd -'Chico Unilicd School District {(3uttc C`uunt~~_ California} I~:Icctiun of 1998 Genera)
Obli~,ation Bonds, Series 13 (lhc "~3onds"). Within `_'6 hours, the ~I~rcasurcr-~fa~ C<~llcctor ol` 13uttc
Count, in conjunction ~~ith the Supcrintcndcnt of the Disll ict, l~il) consider the bids rccci~~ed and. ii~
acceptable bids are rccei~~cd. a~~ard the sale of the Current Interest Bonds on the basis of the true interest
cost. In the e~~ent that no bids arc awarded by the dcsi~~nated time. pr«pc~sals ~~ill be rcccitcd the
fi>Ilo~~in~~ business da}~ at the sank t~n~c and place specilic~l ahu~~c and cash business dad thcrcaftcr until
such time as bids arc awarded or notice to the conU<ir}~ is ~~i~~cn.
N(7~fIC1~: 1S I-I~:IZl~l3Y I~I~R~fIIGI~ GIV[:N that the Bonds ~~ill be ollcred for public sale subject
to the terms and conditions of the Notice h~vitin~~ t3ids for the L3ands, dated .2008. /1n
t)f~iicial Statcnnil and Nt~ticc Inciting Bids rclatin~~ to the 13unds Till be 1~urnishcd upon rcyucst inailcd to
Stone << Youn~~bcrt~ I.LC. (?ne I~crr~ f3uildin~z. Suite ??>. San I~ranciscu. California 9-I l 1 I, the I~inancia)
consultant to the District fur the l3unds.
Dated: . X008
CIUCO UNIFIED SCIIOt)1. DIS~I~IZIC~I~
t3~~:
I'reliminan. subject to cham~r.
Kcllev Stalev
Supcrintcndcnt
C-?