HomeMy WebLinkAboutMINUTES - 07212015 - D.4RECOMMENDATION(S):
1. OPEN PUBLIC HEARING, pursuant to Section 6586.5 of the Government Code, to consider adopting Resolution
No. 2015/278, approving the issuance by the Contra Costa Public Financing Authority of Lease Revenue Bonds
(Refunding and Capital Projects), 2015 Series A and 2015 Series B, in a principal amount not to exceed $90,000,000
to finance various capital projects and a refunding of outstanding bonds for savings;
2. RECEIVE Public testimony;
3. CLOSE Public Hearing;
4. ACKNOWLEDGE and reaffirm previous approvals of projects
5. ADOPT Resolution No. 2015/278, approving the issuance by the Contra Costa Public Financing Authority of
Lease Revenue Bonds (Refunding and Capital Projects), 2015 Series A and 2015 Series B, in a principal amount not
to exceed $90,000,000 to finance various capital projects and a refunding of outstanding bonds for savings
6. APPROVE and AUTHORIZE the forms of and directing the execution and delivery of a Trust Agreement, Site
Lease, Facilities Lease, Bond Purchase Contract, an Official Statement (Preliminary version attached), a Continuing
Disclosure Agreement, an Escrow Agreement, an Eighth Amendment
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 07/21/2015 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I Supervisor
Candace Andersen, District II
Supervisor
Mary N. Piepho, District III
Supervisor
Karen Mitchoff, District IV
Supervisor
ABSENT:Federal D. Glover, District V
Supervisor
Contact: Timothy Ewell,
925-335-1036
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors
on the date shown.
ATTESTED: July 21, 2015
David Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc:
D. 4
To:Board of Supervisors
From:David Twa, County Administrator
Date:July 21, 2015
Contra
Costa
County
Subject:LEASE REVENUE BONDS (REFUNDING AND CAPITAL PROJECTS) 2015 SERIES A AND 2015 SERIES B
RECOMMENDATION(S): (CONT'D)
to Site Lease, and an Eighth Amendment to Facility Lease and related financing documents; and
7. APPROVE and AUTHORIZE the taking of necessary actions and the execution of necessary documents in
connection therewith.
FISCAL IMPACT:
Issuance of up to $90 million in bond financing. In current market conditions, the County expects to issue $19.15
million for new capital projects and approximately $45.64 to refund existing lease revenue bonds. The refunding
of eligible bonds at current market rates will save the County approximately $3.77 million through 2028.
BACKGROUND:
The County has two new projects to finance, approximately $6.5 million in solar panels and approximately $14
million to expand the Behavioral Health and Medical Clinic at the West County Clinic. In addition, a portion of
the Authority’s existing Lease Revenue Bonds can be refunded in the current market for debt service savings.
In the current market, the Authority could issue approximately $19,150,000 of fixed rate Series 2015A Bonds (the
“2015A Bonds”) to finance the acquisition and installation of solar panels and to fund the construction,
acquisition, installation and equipping of the Behavioral Health and Medical Clinic. The Authority could issue
approximately $45,640,000 of fixed rate Series 2015B Bonds (the “2015B Bonds”) to refund a portion of the
Authority’s outstanding Lease Revenue Bonds issued under the 1999 Trust Agreement for debt service savings.
2015A Bonds:
Solar Panels Project- The Authority would finance approximately $6,500,000 in project funds for the
solar panels. The bonds would have level debt service and amortize over 10 years, with principal
paid from 2016 through 2025.
Behavioral Health and Medical Clinic Expansion- The Authority would finance approximately
$14,000,000 in project funds for the medical clinic expansion. These bonds would have a 20 year
final maturity with level debt service and principal paid from 2018 through 2035. Bond counsel has
advised that no principal should amortize until expected completion of the project.
The estimated debt service based on current market rates for the 2015A Bonds is shown below:
2015B Bonds:
The 2015B Bonds would be structured with uniform savings by refunded series, and based on current
market conditions would include all or a portion of the following outstanding Lease Revenue Bonds:
Refunding savings are dependent on market rates and the savings available from a refunding of the 2007A Bonds
are particularly rate sensitive, given that the call date is two years in the future. Based on current market rates,
$29.14 million of the 2007A Bonds would be refunded representing only the 2020 through 2026 maturities of the
2007A Bonds. Debt service and annual debt service savings for the 2015B Bonds is shown below.
Issue Maturities to be
Refunded Call Date Refunded Principal
(subject to change)
Series 1999A 2016-2028 Within 30 days $11,240,000
Series 2002A 2016 Within 30 days $575,000
Series 2002B 2016-2019 Within 30 days $5,350,000
Series 2003A 2016-2017 Within 30 days $1,565,000
Series 2007A 2018-2028 6/1/2017 $41,150,000
A summary of the proposed issuance is provided in the table below.
1999 Trust Agreement: All of the potential refunded bonds were issued pursuant to the 1999 Trust Agreement.
Under that Trust Agreement, the County is able to purchase out and release specific leased assets by prepaying
base rental payments associated with those assets. Any amendment of the lease is subject to consent of the bond
insurer, National Public Finance Guarantee (“NPFG”). NPFG has consented to the amendment and the County
will be able to release the assets listed in the table below from the 1999 Trust Agreement, assuming all of the
Series 1999A, 2002A, 2002B and 2003A bonds are refunded, as currently planned.
Assuming the above assets are released, they will then be available to secure the 2015A and 2015B Bonds. The
2015A and 2015B Bonds would be issued under a new 2015 Trust Agreement. As with the Authority’s existing
Lease Revenue Bonds, the total value of the leased facilities must equal or exceed the par amount of the bonds
and the fair market rental value of the leased facilities must equal or exceed the annual debt service payments on
the bonds. The 2015A and 2015B Bonds are not expected to have level overall debt service because the two new
money projects have different amortization periods and the refunded bonds do not have level debt service. As
such, the intention would be to secure the 2015A and 2015B Bonds with several assets, with various lease
maturity dates based on the shape of the 2015A and 2015B debt service. Under current market conditions, it is
expected that the Authority could issue the new money and refunding bonds using solely the assets released from
the 1999 Trust Agreement. In addition, the Authority plans to release the Public Works Department
Administration building, the Four Buildings at Central Contra Costa County Public Works Yard and the Summit
Centre entirely. The assets that are targeted for inclusion in the 2015 Trust Indenture are indicated in the far right
column of the table above.
However, given volatile market conditions, the County would need to be prepared to secure additional assets in the
case that the size of the refunding increases and the five buildings targeted for inclusion in the 2015 Trust
Agreement are not adequate to secure the 2015 Bonds. In this case, the proposed assets to add to the financing are
listed below.
All of the above results are subject to market conditions at the time of financing. It is also important to note that
the results above assume that the 2015A and 2015B Bonds are issued with a surety bond to fund a reserve fund
for the bonds. Piper Jaffray, the proposed underwriter for the bonds, has been in discussions with bond insurers to
secure a surety bond for the financing.
It is recommended that the Board approve the proposed financing and that the documentation and potential leased
assets preserve the flexibility to respond to the current market’s volatile conditions.
CONSEQUENCE OF NEGATIVE ACTION:
The Authority will be unable to issue the bonds, delaying construction and reimbursement of capital
projects. In addition, the County would be unable to realize savings from refunding of existing debt.
.
CHILDREN'S IMPACT STATEMENT:
No impact.
CLERK'S ADDENDUM
CLOSED the Public Hearing; ADOPTED the recommendations as presented.
ATTACHMENTS
Resolution No. 2015/278
Body of Resolution No. 2015/278
Trust Agreement
Site Lease
Facilities Lease
Eighth Amendment to 1999 Master Site Lease
Eighth Amendment to 1999 Facility Lease
2015 Escrow Agreement for Multiple LRBs
Consent of Bond Insurer - National Public Finance Guarantee
Preliminary Official Statement
Continuing Disclosure Agreement
Public Hearing - Proof of Publication
OH&S Draft
7/13/2015
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TRUST AGREEMENT
by and between the
COUNTY OF CONTRA COSTA PUBLIC FINANCING AUTHORITY
and
WELLS FARGO BANK, NATIONAL ASSOCIATION
as Trustee
Dated as of July 1, 2015
$____________
County of Contra Costa Public Financing Authority
Lease Revenue Bonds (Refunding and Capital Projects),
2015 Series A and 2015 Series B
OHSUSA:761763646
THIS TRUST AGREEMENT dated as of July 1, 2015 (the “Trust Agreement”),
by and between the COUNTY OF CONTRA COSTA PUBLIC FINANCING AUTHORITY
(the “Authority”), a joint exercise of powers authority duly organized and existing pursuant to a n
agreement entitled “Joint Exercise of Powers Agreement” by and between the County of Contra
Costa and the Contra Costa County Redevelopment Agency, and WELLS FARGO BANK,
NATIONAL ASSOCIATION, a national banking association organized and existing under the
laws of the United States of America and qualified to accept and administer the trusts hereby
created, as trustee (the “Trustee”);
W I T N E S S E T H:
WHEREAS, the Authority is a joint exercise of powers authority duly organized
and operating pursuant to Chapter 5 of Division 7 of Title 1 of the Government Code of the State
of California (hereinafter, the “Act”);
WHEREAS, Article 4 of the Act authorizes and empowers the Authority to issue
bonds to assist local agencies in financing projects and programs consisting of certain public
improvements or working capital or liability and other insurance needs whenever a local agency
determines that there are significant public benefits from so doing;
WHEREAS, the Authority has heretofore issued $74,685,000 of the Authority’s
Lease Revenue Bonds (Refunding and Various Capital Projects), 1999 Series A (the “1999
Series A Bonds”), $12,650,000 of the Authority’s Lease Revenue Bonds (Various Capital
Projects), 2002 Series A (the “2002 Series A Bonds”), $25,440,000 of the Authority’s Lease
Revenue Bonds (Refunding and Various Capital Projects), 2002 Series B (the “2002 Series B
Bonds”), $18,500,000 of the Authority’s Lease Revenue Bonds (Various Capital Projects), 2003
Series A (the “2003 Series A Bonds”) and $122,065,000 of the Authority’s Lease Revenue
Bonds (Refunding and Various Capital Projects), 2007 Series A (the “2007 Series A Bonds” and,
collectively with the 1999 Series A Bonds, the 2001 Series A Bonds, the 2001 Series B Bonds,
the 2002 Series A Bonds, the 2002 Series B Bonds and the 2003 Series A Bonds, the “Prior
Bonds”) pursuant to a Trust Agreement, dated as of February 1, 1999 (as supplemented and
amended, the “Prior Trust Agreement”), between the Authority and Wells Fargo Bank, National
Association successor to U.S. Bank National Association, as trustee (the “Prior Trustee”);
WHEREAS, the County of Contra Costa (the “County”) following a public
hearing duly noticed and held, has determined that the consummation of the transactions
contemplated in the Site Lease (as hereinafter defined), the Facilities Lease (as hereinafter
defined) and this Trust Agreement will result in significant public benefits;
WHEREAS, the Authority is empowered pursuant to the Facilities Lease and the
aforementioned Article 4 of the Act to cause the lease of the Facilities (as hereinafter defined),
and to cause the financing of the Project (as hereinafter defined) and the refunding of the Prior
Bonds through the issuance of its bonds;
WHEREAS, the County has determined to finance various capital projects as set
forth in Exhibit D to the Facilities Lease (as amended from time to time, the “Capital Projects”);
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WHEREAS, the Authority intends to assist the County in financing the Capital
Projects and refunding a portion of the Prior Bonds (the “2015 Refunded Bonds”) by issuing the
County of Contra Costa Public Financing Authority Lease Revenue Bonds (Refunding and
Capital Projects), 2015 Series A (the “2015 Series A Bonds”) and the County of Contra Costa
Public Financing Authority Lease Revenue Bonds (Refunding and Capital Projects), 2015
Series B (the “2015 Series B Bonds” and collectively with the 2015 Series A Bonds, the “2015
Bonds”);
WHEREAS, the County will lease to the Authority certain capital assets of the
County (the “Facilities”) pursuant to the Site Lease;
WHEREAS, the County will lease back the Facilities from the Authority pursuant
to the terms of the Facilities Lease;
WHEREAS, the Authority has authorized the issuance of the 2015 Series A
Bonds, in an aggregate principal amount of _____________________________ dollars ($[A par
amount]) and the issuance of the 2015 Series B Bonds, in an aggregate principal amount of
_____________________________ dollars ($[B par amount]) to assist in financing a portion of
the Capital Projects and refunding the 2015 Refunded Bonds;
WHEREAS, to reduce the borrowing costs of the Authority and the base rental
payments of the County, and to help the financing of the Capital Projects and the refunding of
the 2015 Refunded Bonds, from which significant public benefit will be achieved, the 2015
Bonds shall be issued pursuant to Article 4 of the Act;
WHEREAS, to provide for the authentication and delivery of the Bonds (as
hereinafter defined), to establish and declare the terms and conditions upon which the Bonds are
to be issued and secured and to secure the full and timely payment of the principal thereof and
premium, if any, and interest thereon, the Authority has authorized the execution and delivery of
this Trust Agreement; and
WHEREAS, the Authority has determined that all acts and proceedings required
by law necessary to make the Bonds, when executed by the Authority and authenticated and
delivered by the Trustee, duly issued and the valid, binding and legal obligations of the Authority
payable in accordance with their terms, and to constitute this Trust Agreement a valid and
binding agreement of the parties hereto for the uses and purposes herein set forth, have been
done and taken, and have been in all respects duly authorized;
NOW, THEREFORE, THIS TRUST AGREEMENT WITNESSETH, that in
order to secure the full and timely payment of the principal of, premium, if any, and the interest
on all Bonds at any time issued and outstanding under this Trust Agreement, according to their
tenor, and to secure the performance and observance of all the covenants and conditions therein
and herein set forth, and to declare the terms and conditions upon and subject to which the Bonds
are to be issued and received, and in consideration of the premises and of the mutual covenants
herein contained and of the purchase and acceptance of the Bonds by the holders thereof, and for
other valuable consideration, the receipt whereof is hereby acknowledged, the Authority does
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hereby covenant and agree with the Trustee, for the benefit of the respective holders from time to
time of the Bonds, as follows:
ARTICLE I
DEFINITIONS; EQUAL SECURITY
SECTION 1.01 Definitions. Unless the context otherwise requires, the terms
defined in this Section shall for all purposes hereof and of any Supplemental Trust Agreement
and of any certificate, opinion, request or other document herein or therein mentioned have the
meanings herein specified, unless otherwise defined in such other document. Capitalized terms
not otherwise defined herein shall have the meaning assigned to such terms in the Facilities
Lease.
“Accreted Interest” means, with respect to Capital Appreciation Bonds, as of the
date of calculation, the Accreted Value thereof minus the Denominational Amount thereof.
“Accreted Value” means, with respect to Capital Appreciation Bonds, as of the
date of calculation, the Denominational Amount thereof plus the interest accrued thereon to such
date of calculation, compounded from the date of initial delivery at the interest rate thereof on
each June 1 and December 1, as determined in accordance with the Supplemental Trust
Agreement authorizing such Bonds, assuming between compounding dates that such Accreted
Value increases by straight line interpolation in equal daily amounts on the basis of a year of
three hundred sixty (360) days composed of twelve (12) months of thirty (30) days each.
“Act” means the Joint Exercise of Powers Act (being Chapter 5 of Division 7 of
Title 1 of the Government Code of the State, as amended) and all laws amendatory thereof or
supplemental thereto.
“Additional Bonds” means all bonds of the Authority authorized by and at any
time Outstanding pursuant hereto and executed, issued and delivered in accordance with
Article III.
“Authority” means the County of Contra Costa Public Financing Authority
created pursuant to the Act and its successors and assigns in accordance herewith.
“Authorized Denominations” means, with respect to the 2015 Bonds, $5,000 or
any integral multiple thereof.
“Bond Counsel” means counsel of recognized national standing in the field of
law relating to municipal bonds, appointed by the Authority.
“Bond Year” means the twelve (12)-month period ending on June 1 of each year
to which reference is made.
“Bondholder” or “Owner” means any person who shall be the registered owner
of any Outstanding Bond.
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“Bonds” means the 2015 Bonds and all Additional Bonds of the Authority
authorized by and at any time Outstanding pursuant hereto and executed, issued and delivered in
accordance with Section 2.02(a) and Section 3.01.
“Business Day” means a day that is not a Saturday, Sunday or legal holiday on
which banking institutions in the State of New York or California is authorized to remain closed,
or a day on which the Federal Reserve system is closed.
“Capital Appreciation Bonds” means Bonds the interest on which is
compounded semiannually on each Interest Payment Date and paid at maturity as specified in the
accreted value table for such Bonds in an exhibit to a Supplemental Trust Agreement.
“Capital Projects” means the various public capital improvements and projects,
including, but not limited to the acquisition, installation, implementation and construction of the
2015 Project, as described in the Facilities Lease, as the same may be amended from time to time
by a Certificate of the County delivered to the Trustee, to be financed by a portion of the
proceeds of the 2015 Series A Bonds.
“Certificate of the Authority” means an instrument in writing signed by any of
the following officials of the Authority: Chair, Vice-Chair, Executive Director, Assistant
Executive Director or Deputy Executive Director or a designee of any such officer, or by any
other person (whether or not an officer of the Authority) who is specifically authorized by
resolution of the Authority for that purpose.
“Certificate of the County” means an instrument in writing signed by any of the
following County officials: the Chair of the Board of Supervisors, the County Administrator of
the County, the Treasurer-Tax Collector of the County or the County Finance Director or by any
such officials’ duly appointed designee, or by any other officer of the County duly authorized by
the Board of Supervisors of the County for that purpose.
“Code” means the Internal Revenue Code of 1986, as amended.
“Continuing Disclosure Agreement” means that certain Continuing Disclosure
Agreement executed by the County and Digital Assurance Certification, L.L.C., as dissemination
agent, dated the date of issuance and delivery of the 2015 Bonds, as originally executed and as it
may be amended from time to time in accordance with the terms thereof.
“Costs of Issuance” means all items of expense directly or indirectly payable by
or reimbursable to the County or the Authority and related to the authorization, execution and
delivery of the Facilities Lease, the Site Lease, this Trust Agreement and the issuance and sale of
the Bonds, including, but not limited to, costs of preparation and reproduction of documents,
costs of rating agencies and costs to provide information required by rating agencies, filing and
recording fees, fees and charges of the Trustee, legal fees and charges, fees and disbursements of
consultants and professionals, fees and charges for preparation, execution and safekeeping of the
Bonds, title search and title insurance fees, fees of the Authority and any other authorized cost,
charge or fee in connection with the issuance of the Bonds.
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“Costs of Issuance Fund” means the fund by that name established pursuant to
Section 3.01.
“County” means the County of Contra Costa, a County organized and validly
existing under the Constitution and general laws of the State.
“Current Interest Bonds” means Bonds the interest on which is payable on each
Interest Payment Date to the maturity date for each such Bond.
“Debt Service” means, for any Fiscal Year or other period, the sum of (1) the
interest accruing during such Fiscal Year or other period on all Outstanding Bonds, assuming
that all Outstanding Serial Bonds are retired as scheduled and that all Outstanding Term Bonds
are redeemed or paid from sinking fund payments as scheduled (except to the extent that such
interest is to be paid from the proceeds of sale of any Bonds so long as such funded interest is in
an amount equal to the gross amount necessary to pay such interest on the Bonds and is invested
in Permitted Investments which mature no later than the related Interest Payment Date), (2) the
principal amount of all Outstanding Serial Bonds maturing during such Fiscal Year or other
period, and (3) the principal amount of all Outstanding Term Bonds required to be redeemed or
paid (together with the redemption premiums, if any, thereon) during such Fiscal Year or other
period; provided, that the foregoing shall be subject to adjustment and recalculation as follows.
(a) with respect to Capital Appreciation Bonds, the Accreted Value payment
shall be deemed a principal payment and interest that is compounded and paid as
Accreted Value shall be deemed due on the scheduled redemption or payment date of
such Capital Appreciation Bond; and
(b) with respect to Variable Rate Bonds, the interest payments shall be
calculated at a rate equal to 150% of the average rate borne by such Bonds or, if no
Bonds are Outstanding, at a rate of a comparable index (i.e. SIFMA Swap Index)
designated by the Authority, in the last 12 months, but not to exceed twelve percent
(12%) per annum.
“Denominational Amount” means, with respect to Capital Appreciation Bonds,
the initial offering price thereof, which represents the principal amount thereof, and, with respect
to the Current Interest Bonds, the principal amount thereof.
“Depository” means DTC or another recognized securities depository selected by
the Authority which maintains a book-entry system for the Bonds.
“Dissemination Agent” means [Digital Assurance Certification, L.L.C.] or any
successor appointed under the Continuing Disclosure Agreement.
“DTC” means The Depository Trust Company, New York, New York.
“Escrow Agent” means Wells Fargo Bank, National Association, as escrow
agent, or any successor thereo.
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“Escrow Agreement” means that certain Escrow Agreement, by and between the
Escrow Agent and the Authority, dated as of July 1, 2015, providing for the redemption and
defeasance of the 2015 Refunded Bonds.
“Escrow Fund” means the fund of the same name defined in the Escrow
Agreement.
“Event of Default” shall have the meaning specified in Section 7.01.
“Facilities” shall mean the real property and the improvements thereon, as set
forth in Exhibit A to the Facilities Lease, or any County buildings, other improvements and
facilities added thereto or substituted therefor, or any portion thereof, in accordance with the
Facilities Lease and this Trust Agreement.
“Facilities Lease” means that certain lease, entitled “Facilities Lease”, by and
between the County and the Authority, dated as of July 1, 2015, which lease or a memorandum
thereof was recorded in the office of the County Recorder of the County of Contra Costa on
___________, 2015 as document No. _____________, as originally executed and recorded or as
it may from time to time be supplemented, modified or amended pursuant to the provisions
hereof and thereof.
“Fiscal Year” means the twelve (12)-month period terminating on June 30 of
each year, or any other annual accounting period hereafter selected and designated by the
Authority as its Fiscal Year in accordance with applicable law.
“Fixed Rate Bonds” means Bonds of any Series which bear interest at a fixed
interest rate from the date of such Bonds until the maturity or redemption date thereof.
“Government Securities” means (1) cash; (2) U.S. Treasury Certificates, Notes
and Bonds (including State and Local Government Series – “SLGS”); (3) direct obligations of
the U.S. Treasury which have been stripped by the Treasury itself, such as CATS, TIGRS and
similar securities; (4) Resolution Funding Corp. (REFCORP) strips (interest component only)
which have been stripped by request to the Federal Reserve Bank of New York in book entry
form; (5) pre-refunded municipal bonds rated the same rating as U.S. Treasury securities, or if
not rated, then pre-refunded bonds that have been pre-refunded with cash, direct U.S. or U.S.
guaranteed obligations; and (6) obligations issued by the following agencies which are backed by
the full faith and credit of the U.S.: (a) U.S. Export-Import Bank direct obligations or fully
guaranteed certificates of beneficial ownership, (b) Farmers Home Administration (FmHA)
certificates of beneficial ownership, (c) Federal Financing Bank, (d) General Services
Administration participation certificates, (e) U.S. Maritime Administration Guaranteed Title XI
financing, (f) U.S. Department of Housing and Urban Development (HUD) Project Notes, Local
Authority Bonds, New Communities Debentures – U.S. government guaranteed debentures, and
U.S. Public Housing Notes and Bonds – U.S. government guaranteed public housing notes and
bonds.
“Independent Certified Public Accountant” means any certified public
accountant or firm of such accountants duly licensed and entitled to practice and practicing as
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such under the laws of the State or another state of the United States of America or a comparable
successor, appointed and paid by the Authority, and who, or each of whom –
(1) is in fact independent according to the Statement of Auditing Standards
No. 1 and not under the domination of the Authority or the County;
(2) does not have a substantial financial interest, direct or indirect, in the
operations of the Authority or the County; and
(3) is not connected with the Authority or the County as a member, officer or
employee of the Authority or the County, but who may be regularly retained to audit the
accounting records of and make reports thereon to the Authority or the County.
“Interest Payment Date” means, with respect to the 2015 Bonds, June 1 and
December 1 in each year, commencing December 1, 2015.
“Interest Payment Period” means the period from and including each Interest
Payment Date (or, for the first Interest Payment Period, the date of the Bonds) to and including
the day immediately preceding the next succeeding Interest Payment Date.
“Joint Powers Agreement” means the Joint Exercise of Powers Agreement by
and between the County and the Contra Costa County Flood Control and Water Conservation
District, dated April 7, 1992, as originally executed and as it may from time to time be amended
or supplemented pursuant to the provisions hereof and thereof.
“Moody’s” means Moody’s Investors Service a corporation duly organized and
existing under and by virtue of the laws of the State of Delaware, and its successors and assigns,
except that if such corporation shall be dissolved or liquidated or shall no longer perform the
functions of a securities rating agency, then the term “Moody’s” shall be deemed to refer to any
other nationally recognized securities rating agency selected by the County.
“Opinion of Counsel” means a written opinion of Bond Counsel.
“Outstanding,” when used as of any particular time with reference to Bonds,
means (subject to the provisions of Section 9.02) all Bonds except
(1) Bonds theretofore cancelled by the Trustee or surrendered to the Trustee
for cancellation;
(2) Bonds paid or deemed to have been paid within the meaning of
Section 10.01;
(3) Bonds deemed tendered but not yet presented for purchase; and
(4) Bonds in lieu of or in substitution for which other Bonds shall have been
executed, issued and delivered by the Authority pursuant hereto.
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“Permitted Encumbrances” means (1) liens for general ad valorem taxes and
assessments, if any, not then delinquent, or which the County may, pursuant to the Facilities
Lease, permit to remain unpaid; (2) easements, rights of way, mineral rights, drilling rights and
other rights, reservations, covenants, conditions or restrictions which exist of record as of the
date of recordation of the Facilities Lease in the office of the County Recorder of the County of
Contra Costa and which the County certifies in writing will not materially impair the use of the
Facilities; (3) the Site Lease, as it may be amended from time to time and the Facilities Lease, as
it may be amended from time to time; (4) this Trust Agreement, as it may be amended from time
to time; (5) any right or claim of any mechanic, laborer, materialman, supplier or vendor not
filed or perfected in the manner prescribed by law; (6) easements, rights of way, mineral rights,
drilling rights and other rights, reservations, covenants, conditions or restrictions to which the
Authority and the County consent in writing and certify to the Trustee will not materially impair
the ownership interests of the Authority or use of the Facilities by the County; and (7) subleases
and assignments of the County which will not adversely affect the exclusion from gross income
of interest on the Bonds.
“Permitted Investments” means any of the following:
(1) Government Securities;
(2) direct obligations of the United States of America (including obligations
issued or held in book-entry form on the books of the Department of the Treasury) or obligations
the principal of and interest on which are unconditionally guaranteed by the United States of
America;
(3) bonds, debentures, notes or other evidence of indebtedness issued or
guaranteed by any of the following federal agencies and provided such obligations are backed by
the full faith and credit of the United States of America (stripped securities are only permitted if
they have been stripped by the agency itself): (a) Farmers Home Administration (FmHA)
certificates of beneficial ownership, (b) Federal Housing Administration (FHA) debentures,
(c) General Services Administration participation certificates, (d) Government National
Mortgage Association (GNMA or “Ginnie Mae”) guaranteed mortgage-backed bonds and
guaranteed pass-through obligations (participation certificates), (e) U.S. Maritime
Administration guaranteed Title XI financing, and (f) U.S. Department of Housing and Urban
Development (HUD) Project Notes and Local Authority Bonds;
(4) bonds, debentures, notes or other evidence of indebtedness issued or
guaranteed by any of the following non-full faith and credit U.S. government agencies (stripped
securities are only permitted if they have been stripped by the agency itself): (a) Federal Home
Loan Bank System senior debt obligations (consolidated debt obligations), (b) Federal Home
Loan Mortgage Corporation (FHLMC or “Freddie Mac”) participation certificates (mortgage-
backed securities) and senior debt obligations, (c) Federal National Mortgage Association
(FNMA or “Fannie Mae”) mortgage-backed securities and senior debt obligations (excluded are
stripped mortgage securities which are valued greater than par on the portion of unpaid
principal), (d) Resolution Funding Corp. (REFCORP) strips (interest component only) which
have been stripped by request to the Federal Reserve Bank of New York in book entry form, and
(e) Farm Credit System Consolidated systemwide bonds and notes;
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(5) money market funds registered under the Federal Investment Company Act of
1940, the shares of which are registered under the Federal Securities Act of 1933, and which
have a rating by S&P of AAAm-G, AAAm, or AA-m and, if rated by Moody’s, rated Aaa, Aal
or Aa2, and which funds may include funds which the Trustee, its affiliates, or subsidiaries
provide investment advisory or other management services;
(6) certificates of deposit secured at all times by collateral described in (2) and/or
(3) above (which collateral must be held by a third party and subject to a perfected first security
interest held by the Trustee) with a maturity of one year or less and issued by commercial banks,
savings and loan associations or mutual savings banks whose short term obligations are rated “A-
1+” or better by S&P and “Prime-l” by Moody’s;
(7) certificates of deposit, savings accounts, deposit accounts or money market
deposits which are fully insured by FDIC, including BIF and SAIF;
(8) investment agreements, including guaranteed investment contracts;
(9) commercial paper rated “Prime-1” by Moody’s and “A-1+” or better by S&P;
(10) bonds or notes issued by any state or municipality which is rated by Moody’s
and S&P in one of the two highest long-term rating categories assigned by such agencies;
(11) federal funds or bankers acceptances with a maximum term of one year of
any bank which has an unsecured, uninsured and unguaranteed obligation rating of “Prime-1” or
“A3” or better by Moody’s and “A-1+” or better by S&P;
(12) repurchase agreements that provide for the transfer of securities from a dealer
bank or securities firm (seller/borrower) to the Trustee (buyer/lender) and the transfer of cash
from the Trustee to the dealer bank or securities firm with an agreement that the deal er bank or
securities firm will repay the cash plus a yield to the Trustee in exchange for the securities at a
specified date and that satisfy the following criteria:
(a) repurchase agreements must be between the municipal entity and
dealer banks or securities firms that are (i) on the Federal Reserve reporting dealer list which fall
under the jurisdiction of the SIPC and which are rated A or better by S&P and Moody’s, or
(ii) banks rated “A” or above by S&P and Moody’s, and
(b) repurchase agreements must include the following: (i) securities that
are acceptable for transfer, including those describe in clauses (2) and (3) above, (ii) terms of not
more than 30 days, (iii) collateral must be delivered to the Trustee (if Trustee is not supplying the
collateral) or third party acting as agent for the Trustee (if the Trustee is supplying the collateral)
before or simultaneously with payment (perfection by possession of certificated securities),
(iv) the Trustee must have a perfected first priority security interest in the collateral, (v) collateral
must be free and clear of third-party liens and, in the case of an SIPC broker, must not have been
acquired pursuant to a repurchase agreement or reverse repurchase agreement, (vi) failure to
maintain the requisite collateral percentage, after a two day restoration period, requires the
Trustee to liquidate collateral, (vii) securities must be valued weekly and marked-to-market at
10 OHSUSA:761763646
current market price plus accrued interest, and (viii) the value of-collateral must be equal to
104% or, if the securities used as collateral are FNMA or FHLMC securities, 105%, of the
amount of cash transferred to the dealer bank or security firm under the repurchase agreement
plus accrued interest and, if the value of securities held as collateral slips below such amount,
then additional cash and/or acceptable securities must be transferred;
(13) pre-refunded municipal bonds rated the same rating as U.S. Treasury
securities or, if there is no rating, then pre-refunded bonds pre-refunded with cash, direct U.S. or
U.S. guaranteed obligations;
(14) the County of Contra Costa Investment Pool;
(15) shares of beneficial interest issued by the Investment Trust of California
(CalTRUST) pursuant to California Government Code Section 6509.7 and authorized for local
agency investment pursuant to California Government Code Section 53601(o); and
(16) the Local Agency Investment Fund of the State of California. The Trustee
may conclusively rely on the written instructions of the Authority and the County that such
investment is a Permitted Investment.
“Person” means a corporation, firm, association, partnership, trust, or other legal
entity or group of entities, including a governmental entity or any agency or political subdivision
thereof.
“Principal Office” refers to the office of the Trustee noted in Section 11.09 and
such other offices as the Trustee may designate from time to time.
“Principal Payment Date” means any date on which principal of the Bonds is
required to be paid (whether by reason of maturity, redemption or acceleration).
“Project” means the Capital Projects and any additional facilities or
improvements financed with proceeds of Additional Bonds.
“Project Fund” means the fund by that name established pursuant to
Section 3.02.
“Rating Category” means one of the general long-term (or short-term, if so
specifically provided) rating categories of either Moody’s and S&P, without regard to any
refinement or gradation of such rating category by a numerical modifier (unless a short-term
rating) or otherwise.
“Record Date” means the close of business on the fifteenth (15th) calendar day
(whether or not a Business Day) of the month preceding any Interest Payment Date.
“Redemption Date” shall mean the date fixed for redemption of any Bonds.
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“Redemption Price” means, with respect to any Bond (or portion thereof), the
principal amount of such Bond (or portion) plus the applicable premium, if any, payable upon
redemption thereof pursuant to the provisions of such Bond and this Trust Agreement.
“Representation Letter” means the blanket letter of representation of the
Authority to DTC or any similar letter to a substitute depository.
“Reserve Fund” means the fund by that name created pursuant to Section
5.03(d).
“Reserve Fund Requirement” means with respect to all Outstanding 2015
Bonds an amount equal to the least of (i) the maximum annual debt service attributable to the
Outstanding 2015 Bonds, (ii) 125% of average annual debt service attributable to the
Outstanding 2015 Bonds and (iii) 10% of the proceeds of the 2015 Bonds. The Reserve Fund
Requirement means, for any Additional Series of Bond, as of any date of calculation, the
amount, if any, specified by a Supplemental Trust Agreement as the amount required to be held
in an account in the Reserve Fund for the payment of principal of and interest on that Series of
Additional Bonds.
“Responsible Officer” means any officer of the Trustee assigned to administer
its duties under this Trust Agreement.
“Revenue Fund” means the fund by that name created pursuant to Section 5.02
hereof.
“Revenues” means (i) all Base Rental Payments and other payments paid by the
County and received by the Authority pursuant to the Facilities Lease (but not Additional
Payments), and (ii) all interest or other income from any investment, pursuant to Section 5.05, of
any money in any fund or account (other than the Rebate Fund) established pursuant to this Trust
Agreement or the Facilities Lease.
“Serial Bonds” means Bonds for which no sinking fund payments are provided.
“Series,” whenever used herein with respect to Bonds, means all of the Bonds
designated as being of the same series, authenticated and delivered in a simultaneous transaction,
regardless of variations in maturity, interest rate, redemption and other provisions, and any
Bonds thereafter authenticated and delivered upon transfer or exchange of or in lieu of or in
substitution for (but not to refund) such Bonds as herein provided.
“S&P” means Standard & Poor’s Ratings Services, a Standard & Poor’s
Financial Services LLC business, and its successors and assigns, except that if such entity shall
be dissolved or liquidated or shall no longer perform the functions of a securities rating agency,
then the term S&P shall be deemed to refer to any other nationally recognized securities rating
agency selected by the County.
“Site Lease” means that certain lease, entitled “Site Lease,” by and between the
County and the Authority, dated as of July 1, 2015, which lease or a memorandum thereof was
12 OHSUSA:761763646
recorded in the office of the County Recorder of the County of Contra Costa on _________,
2015 as document No. __________, as originally executed and recorded or as it may from time
to time be supplemented, modified or amended pursuant to the provisions hereof and thereof.
“State” means the State of California.
“Supplemental Trust Agreement” means any trust agreement then in full force
and effect which has been duly executed and delivered by the Authority and the Trustee
amendatory hereof or supplemental hereto; but only if and to the extent that such Supplemental
Trust Agreement is executed and delivered pursuant to the provisions hereof.
“Tax Certificate” means the Tax Certificate and Agreement delivered by the
Authority and the County at the time of the issuance and delivery of a Series of Bonds, as the
same may be amended or supplemented in accordance with its terms.
“Term Bonds” means Bonds which are payable on or before their specified
maturity dates from sinking fund payments established for that purpose and calculated to retire
such Bonds on or before their specified maturity dates.
“Trust Agreement” means this Trust Agreement, dated as of July 1, 2015,
between the Authority and the Trustee, as originally executed and as it may from time to time be
amended or supplemented by all Supplemental Trust Agreements executed pursuant to the
provisions hereof.
“Trustee” means Wells Fargo Bank, National Association, or any other
association or corporation which may at any time be substituted in its place as provided in
Section 8.01.
“2015 Bonds” means collectively, the 2015 Series A Bonds and the 2015
Series B Bonds.
“2015 Project” means the acquisition, installation, implementation and
construction of certain projects of the County, specifically the solar photovoltaic panels and the
new medical clinic located at 13601 San Pablo Avenue, San Pablo, California, and payment of
any costs associated with financing of said projects, as set forth in Exhibit D to the Facilities
Lease as the same may be changed from time to time, in accordance with Section 3.07 of the
Facilities Lease, by the County by filing a Certificate of the County with the Trustee.
“2015 Refunded Bonds” means the County of Contra Costa Public Financing
Authority Lease Revenue Bonds (Refunding and Various Capital Projects), 1999 Series A, the
County of Contra Costa Public Financing Authority Lease Revenue Bonds (Various Capital
Projects), 2002 Series A, the County of Contra Costa Public Financing Authority Lease Revenue
Bonds (Refunding and Various Capital Projects), 2002 Series B, the County of Contra Costa
Public Financing Authority Lease Revenue Bonds (Various Capital Projects), 2003 Series A and
the County of Contra Costa Public Financing Authority Lease Revenue Bonds (Refunding and
Various Capital Projects), 2007 Series A identified in the Escrow Agreement, all issued under
the Prior Trust Agreement.
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“2015 Reserve Facility” means [description of surety bond].
“2015 Series A Bonds” means the Bonds of such Series issued pursuant to
Section 2.02(a) hereof.
“2015 Series B Bonds” means the Bonds of such Series issued pursuant to
Section 2.02(a) hereof.
“Variable Rate Bonds” means Bonds of any Series which bear interest at a
variable interest rate.
“Written Request of the Authority” means an instrument in writing signed by
or on behalf of the Authority by its Chair, Vice-Chair, Executive Director, Assistant Executive
Director or Deputy Executive Director or a designee of any such officer or by any other person
(whether or not an officer of the Authority) who is specifically authorized by resolution of the
Board of Directors of the Authority to sign or execute such a document on its behalf.
“Written Request of the County” means an instrument in writing signed by the
County Administrator of the County or his designee, or by the County Finance Director of the
County, or by any other officer of the County duly authorized by the Board of Supervisors of the
County in writing to the Trustee for that purpose.
SECTION 1.02 Equal Security. In consideration of the acceptance of the Bonds by
the Bondholders thereof, this Trust Agreement shall be deemed to be and shall constitute a
contract among the Authority, the Trustee and the Bondholders from time to time of all Bonds
authorized, executed, issued and delivered hereunder and then Outstanding to secure the full,
timely and final payment of the interest on and principal of and redemption premiums, if any, on
all Bonds which may from time to time be authorized, executed, issued and delivered hereunder,
subject to the agreements, conditions, covenants and provisions contained herein; and all
agreements and covenants set forth herein to be performed by or on behalf of the Authority shall
be for the equal and proportionate benefit, protection and security of all Bondholders of the
Bonds without distinction, preference or priority as to security or otherwise of any Bonds over
any other Bonds by reason of the number or date thereof or the time of authorization, sale,
execution, issuance or delivery thereof or for any cause whatsoever, except as expressly provided
herein or therein.
SECTION 1.03 Interpretation. Unless the context otherwise indicates, words
expressed in the singular shall include the plural and vice versa and the use of the neuter,
masculine, or feminine gender is for convenience only and shall be deemed to mean or include
the neuter, masculine or feminine gender, as appropriate. Headings of articles and sections
herein and the table of contents hereof are solely for convenience of reference, do not constitute
a part hereof and shall not affect the meaning, construction or effect hereof.
14 OHSUSA:761763646
ARTICLE II
THE BONDS
SECTION 2.01 Authorization of Bonds; 2015 Bonds.
(a) Bonds may be issued hereunder from time to time in order to obtain
moneys to carry out the purposes of the Authority. The maximum principal amount of Bonds
which may be issued hereunder is not limited but is subject to the provisions of Article III. The
Bonds are designated generally as “County of Contra Costa Public Financing Authority Lease
Revenue Bonds,” each Series thereof to bear such additional designation as may be necessary or
appropriate to distinguish such Series from every other Series of Bonds. The Bonds may be
issued in such Series as from time to time shall be established and authorized by the Authority,
subject to the covenants, provisions and conditions herein contained.
(b) Two initial Series of Bonds are hereby created and designated “County of
Contra Costa Public Financing Authority Lease Revenue Bonds (Refunding and Capital
Projects), 2015 Series A” and “County of Contra Costa Public Financing Authority Lease
Revenue Bonds (Refunding and Capital Projects), 2015 Series B.” The aggregate principal
amount of 2015 Series A Bonds which may be issued and Outstanding under this Trust
Agreement shall not exceed ______________________ dollars ($[A par amount]) and the
aggregate principal amount of 2015 Series B Bonds which may be issued and Outstanding under
this Trust Agreement shall not exceed ______________________ dollars ($[B par amount]).
(c) The Authority has reviewed all proceedings heretofore taken relative to
the authorization of the 2015 Bonds and has found, as a result of such review, and hereby finds
and determines that all acts, conditions and things required by law to exist, to have happened and
to have been performed precedent to and in the issuance of the 2015 Bonds do exist, have
happened and have been performed in due time, form and manner as required by law, and that
the Authority is now duly authorized, pursuant to each and every requirement of the Act, to issue
the 2015 Bonds in the form and manner provided herein for the purpose of providing funds to
finance the Capital Projects and refund the 2015 Refunded Bonds, and that the 2015 Bonds shall
be entitled to the benefit, protection and security of the provisions hereof.
(d) The validity of the issuance of the 2015 Series A Bonds shall not be
dependent on or affected in any way by the proceedings taken by the Authority for the financing
of the Capital Projects or by any contracts made by the Authority or its agents in connection
therewith, and shall not be dependent upon the performance by any person, firm or corporation
of his or its obligation with respect thereto. The recital contained in the 2015 Series A Bonds
that the same are issued pursuant to the Act and pursuant hereto shall be conclusive evidence of
their validity and of the regularity of their issuance, and all 2015 Series A Bonds shall be
incontestable from and after their issuance. The 2015 Series A Bonds shall be deemed to be
issued, within the meaning hereof, whenever the definitive 2015 Series A Bonds (or any
temporary 2015 Series A Bonds exchangeable therefor) shall have been delivered to the
purchaser thereof and the proceeds of sale thereof received.
15 OHSUSA:761763646
SECTION 2.02 Terms of the 2015 Bonds.
(a) The 2015 Series A Bonds shall be issued in the aggregate principal amount of
________________________________________ dollars ($[A par amount]). The 2015 Series B
Bonds shall be issued in the aggregate principal amount of
________________________________________ dollars ($[B par amount]). The 2015 Bonds,
shall be issued as Fixed Rate Bonds, shall be dated the date of issuance thereof, shall be issued
only in fully registered form in Authorized Denominations (not exceeding the principal amount
of 2015 Bonds maturing at any one time), and shall mature in the years and in the principal
amounts and bear interest at the rates as set forth in the following schedules, subject to prior
redemption as described in Article IV hereof:
County of Contra Costa Public Financing Authority
Lease Revenue Bonds (Refunding and Capital Projects),
2015 Series A
Maturity Date
(June 1) Principal Amount Interest Rate
16 OHSUSA:761763646
County of Contra Costa Public Financing Authority
Lease Revenue Bonds (Refunding and Capital Projects),
2015 Series B
Maturity Date
(June 1) Principal Amount Interest Rate
The 2015 Bonds shall bear interest at the rates set forth above, payable
commencing December 1, 2015 and semiannually thereafter on June 1 and December 1 in each
year. The 2015 Bonds shall pay interest to the registered owner thereof from the Interest
Payment Date next preceding the date of authentication thereof, unless such date of
authentication is after the Record Date for an Interest Payment Date, in which event they shall
pay interest from such Interest Payment Date, or unless such date of authentication is on or prior
to the Record Date for the first Interest Payment Date, in which event they shall pay interest from
their dated date. The amount of interest so payable on any Interest Payment Date shall be
computed on the basis of a 360-day year consisting of twelve 30-day months.
(b) Payment of interest on the 2015 Bonds due on or before the maturity or
prior redemption thereof shall be paid by check mailed by first class mail on each Interest
Payment Date to the person in whose name the Bond is registered as of the applicable Record
Date for such Interest Payment Date at the address shown on the registration books maintained
by the Trustee pursuant to Section 2.07; provided, however, that interest on any Series of Bonds
shall be paid by wire transfer or other means to provide immediately available funds to any
Owner of at least $1,000,000 in aggregate principal amount of such Series of Bonds, at its
option, according to wire instructions given to the Trustee in writing for such purpose and on file
as of the applicable Record Date preceding the Interest Payment Date.
(c) Interest on any Bond shall cease to accrue (i) on the maturity date thereof,
provided that there has been irrevocably deposited with the Trustee an amount sufficient to pay
the principal amount thereof, plus interest accrued thereon to such date; or (ii) on the redemption
date thereof, provided there has been irrevocably deposited with the Trustee an amount sufficient
to pay the Redemption Price thereof, plus interest accrued thereon to such date. The Owner of
such Bond shall not be entitled to any other payment, and such Bond shall no longer be
17 OHSUSA:761763646
Outstanding and entitled to the benefits of this Trust Agreement, except for the payment of the
principal amount or Redemption Price, of such Bond, as appropriate, from moneys held by the
Trustee for such payment.
(d) The principal of the Bonds shall be payable by check in lawful money of
the United States of America at the Principal Office of the Trustee. No payment of principal
shall be made on any Bond unless and until such Bond is surrendered to the Trustee for
cancellation.
(e) The Trustee shall identify all payments (whether made by check or by
wire transfer) of interest, principal, and premium by the CUSIP number of the related Bonds.
SECTION 2.03 Form of 2015 Bonds. The 2015 Bonds and the authentication and
registration endorsement and assignment to appear thereon shall be substantially in the form set
forth in Exhibit A attached hereto and by this reference is herein incorporated.
SECTION 2.04 Execution of Bonds. The Chair or the Executive Director of the
Authority is hereby authorized and directed to execute each of the Bonds on behalf of the
Authority and the Secretary or Assistant Secretary of the Authority is hereby authorized and
directed to countersign each of the Bonds on behalf of the Authority. The signatures of such
officers may be by printed, lithographed or engraved by facsimile reproduction. In case any
officer whose signature appears on the Bonds shall cease to be such officer before the delivery of
the Bonds to the purchaser thereof, such signature shall nevertheless be valid and sufficient for
all purposes as if such officer had remained in office until such delivery of the Bonds.
Only those Bonds bearing thereon a certificate of authentication in the form
hereinbefore recited, executed manually and dated by the Trustee, shall be entitled to any benefit,
protection or security hereunder or be valid or obligatory for any purpose, and such certificate of
the Trustee shall be conclusive evidence that the 2015 Bonds so authenticated have been duly
authorized, executed, issued and delivered hereunder and are entitled to the benefit, protection
and security hereof.
SECTION 2.05 Transfer and Payment of Bonds. (a) Any Bond may, in accordance
with its terms, be transferred in the books required to be kept pursuant to the provisions of
Section 2.07 by the person in whose name it is registered, in person or by his duly authorized
attorney, upon surrender of such Bond for cancellation accompanied by delivery of a duly
executed written instrument of transfer in a form acceptable to the Trustee. Whenever any Bond
or Bonds shall be surrendered for transfer, the Authority shall execute and the Trustee shall
authenticate and deliver to the transferee a new Bond or Bonds of the same Series and maturity
for a like aggregate principal amount of Authorized Denominations. The Trustee shall require
the payment by the Bondholder requesting such transfer of any tax or other governm ental charge
required to be paid with respect to such transfer as a condition precedent to the exercise of such
privilege.
The Authority and the Trustee may, except as otherwise provided herein, deem
and treat the registered owner of any Bond as the absolute owner of such Bond for the purpose of
receiving payment thereof and for all other purposes, whether such Bond shall be overdue or not,
18 OHSUSA:761763646
and neither the Authority nor the Trustee shall be affected by any notice or knowledge to the
contrary; and payment of the interest on and principal of and redemption premium, if any, on
such Bond shall be made only to such registered owner, which payments shall be valid and
effectual to satisfy and discharge liability on such Bond to the extent of the sum or sums so paid.
The Trustee shall not be required to register the transfer of or exchange any Bonds
which has been selected for redemption in whole or in part, from and after the day of mailing of
a notice of redemption of such Bond selected for redemption in whole or in part as provided in
Section 4.04 or during the period established by the Trustee for selection of Bonds for
redemption.
SECTION 2.06 Exchange of Bonds. Bonds may be exchanged at the Principal
Office of the Trustee for a like aggregate principal amount of Bonds of the same Series and
maturity in Authorized Denominations. The Trustee shall require the payment by the
Bondholder requesting such exchange of any tax or other governmental charge required to be
paid with respect to such exchange as a condition precedent to the exercise of such privilege.
The Trustee shall not be required to exchange any Bond which has been selected for redemption
in whole or in part, from and after the day of mailing of a notice of redemption of such Bond
selected for redemption in whole or in part as provided in Section 4.04 or during the period
established by the Trustee for selection of Bonds for redemption.
SECTION 2.07 Bond Registration Books. The Trustee will keep at its office
sufficient books for the registration and transfer of the Bonds, which during normal business
hours shall be open to inspection by the Authority upon reasonable notice, and upon presentation
for such purpose the Trustee shall, under such reasonable regulations as it may prescribe, register
or transfer the Bonds in such books as hereinabove provided.
SECTION 2.08 Mutilated, Destroyed, Stolen or Lost Bonds; Temporary Bonds. If
any Bond shall become mutilated, the Trustee, at the expense of the Bondholder, shall thereupon
authenticate and deliver a new Bond of like tenor and amount in exchange and substitution for
the Bond so mutilated, but only upon surrender to the Trustee of the Bond so mutilated. Every
mutilated Bond so surrendered to the Trustee shall be cancelled.
If any Bond shall be lost, destroyed or stolen, evidence of such loss, destruction or
theft may be submitted to the Trustee and, if such evidence be satisfactory to the Trustee and
indemnity satisfactory to the Trustee shall be given, the Trustee, at the expense of the
Bondholder, 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.
The Trustee may require payment of a reasonable sum for each new Bond issued
under this Section 2.08 and of the expenses which may be incurred by the Authority and the
Trustee in the premises. Any Bond issued under the provisions of this Section in lieu of any
Bond alleged to be lost, destroyed or stolen shall be equally and proportionately entitled to the
benefits of this Trust Agreement with all other Bonds of the same Series secured by this Trust
Agreement. Neither the Authority nor the Trustee shall be required to treat both the original
Bond and any replacement Bond as being Outstanding for the purpose of determining the
principal amount of Bonds which may be issued hereunder or for the purpose of determining any
19 OHSUSA:761763646
percentage of Bonds Outstanding hereunder, but both the original and replacement Bond shall be
treated as one and the same.
The Bonds issued under this Trust Agreement may be initially issued in
temporary form exchangeable for definitive Bonds when ready for delivery. The temporary
Bonds may be printed, lithographed or typewritten, shall be of such denominations as may be
determined by the Authority, shall be in fully registered form and may contain such reference to
any of the provisions of this Trust Agreement as may be appropriate. Every temporary Bond
shall be executed and authenticated as authorized by the Authority, in accordance with the terms
of the Act. If the Authority issues temporary Bonds it will execute and furnish definitive Bonds
without delay and thereupon the temporary Bonds may be surrendered, for cancellation, in
exchange therefor at the Principal Office of the Trustee, and the Trustee shall deliver in exchange
for such temporary Bonds an equal aggregate principal amount of definitive Bonds of authorized
denominations. Until so exchanged, the temporary Bonds shall be entitled to the same benefits
under this Trust Agreement as definitive Bonds delivered hereunder.
SECTION 2.09 Special Covenants as to Book-Entry Only System for 2015
Bonds.
(a) Except as otherwise provided in subsections (b) and (c) of this Section 2.09,
all of the 2015 Bonds initially issued shall be registered in the name of Cede & Co., as nominee
for DTC, or such other nominee as DTC shall request pursuant to the Representation Letter.
Payment of the interest on any 2015 Bond registered in the name of Cede & Co. shall be made
on each Interest Payment Date for such 2015 Bonds to the account, in the manner and at the
address indicated in or pursuant to the Representation Letter.
(b) The 2015 Bonds initially shall be issued in the form of a single authenticated
fully registered bond for each stated maturity of such 2015 Bonds, representing the aggregate
principal amount of the 2015 Bonds of such maturity. Upon initial issuance, the ownership of all
such 2015 Bonds shall be registered in the registration records maintained by the Trustee
pursuant to Section 2.07 in the name of Cede & Co., as nominee of DTC, or such other nominee
as DTC shall request pursuant to the Representation Letter. The Trustee, the Authority and any
paying agent may treat DTC (or its nominee) as the sole and exclusive owner of the 2015 Bonds
registered in its name for the purposes of pa yment of the principal or redemption price of and
interest on such 2015 Bonds, selecting the 2015 Bonds or portions thereof to be redeemed,
giving any notice permitted or required to be given to Bondholders hereunder, registering the
transfer of 2015 Bonds, obtaining any consent or other action to be taken by Bondholders of the
2015 Bonds and for all other purposes whatsoever; and neither the Trustee nor the Authority or
any paying agent shall be affected by any notice to the contrary. Neither the Trustee nor the
Authority or any paying agent shall have any responsibility or obligation to any “Participant”
(which shall mean, for purposes of this Section 2.09, securities brokers and dealers, banks, trust
companies, clearing corporations and other entities, some of whom directly or indirectly own
DTC), any person claiming a beneficial ownership interest in the 2015 Bonds under or through
DTC or any Participant, or any other person which is not shown on the registration records as
being a Bondholder, with respect to (i) the accuracy of any records maintained by DTC or any
Participant, (ii) the payment by DTC or any Participant of any amount in respect of the principal
20 OHSUSA:761763646
or redemption price of or interest on the 2015 Bonds, (iii) any notice which is permitted or
required to be given to Bondholders of 2015 Bonds hereunder, (iv) the selection by DTC or any
Participant of any person to receive payment in the event of a partial redemption of the 2015
Bonds, or (v) any consent given or other action taken by DTC as Bondholder of 2015 Bonds.
The Trustee shall pay all principal of and premium, if any, and interest on the 2015 Bonds only
at the times, to the accounts, at the addresses and otherwise in accordance with the
Representation Letter, and all such payments shall be valid and effective to satisfy fully and
discharge the Authority’s obligations with respect to the payment of the principal of and
premium, if any, and interest on the 2015 Bonds to the extent of the sum or sums so paid. Upon
delivery by DTC to the Trustee of written notice to the effect that DTC has determined to
substitute a new nominee in place of its then existing nominee, the 2015 Bonds will be
transferable to such new nominee in accordance with subsection (e) of this Section 2.09.
(c) In the event that the Authority determines that the 2015 Bonds should not be
maintained in book-entry form, the Trustee shall, upon the written instruction of the Authority,
so notify DTC, whereupon DTC shall notify the Participants of the availability through DTC of
bond certificates. In such event, the 2015 Bonds will be transferable in accordance with
subsection (e) of this Section 2.09. DTC may determine to discontinue providing its services
with respect to the 2015 Bonds or a portion thereof, at any time by giving written notice of such
discontinuance to the Authority or the Trustee and discharging its responsibilities with respect
thereto under applicable law. In such event, the 2015 Bonds will be transferable in accordance
with subsection (e) of this Section 2.09. If at any time DTC shall no longer be registered or in
good standing under the Securities Exchange Act or other applicable statute or regulation and a
successor securities depository is not appointed by the Authority within 90 days after the
Authority receives notice or becomes aware of such condition, as the case may be, then this
Section 2.09 shall no longer be applicable and the Authority shall execute and the Trustee shall
authenticate and deliver certificates representing the 2015 Bonds as provided below. Whenever
DTC requests the Authority and the Trustee to do so, the Trustee and the Authority will
cooperate with DTC in taking appropriate action after reasonable notice to arrange for another
securities depository to maintain custody of all certificates evidencing the 2015 Bonds then
Outstanding. In such event, the 2015 Bonds will be transferable to such securities depository in
accordance with subsection (e) of this Section 2.09, and thereafter, all references in this Trust
Agreement to DTC or its nominee shall be deemed to refer to such successor securities
depository and its nominee, as appropriate.
(d) Notwithstanding any other provision of this Trust Agreement to the contrary,
so long as all 2015 Bonds Outstanding are registered in the name of any nominee of DTC, all
payments with respect to the principal of and premium, if any, and interest on each such 2015
Bond and all notices with respect to each such 2015 Bond shall be made and given, respectively,
to DTC as provided in or pursuant to the Representation Letter.
(e) In the event that any transfer or exchange of 2015 Bonds is authorized under
subsection (b) or (c) of this Section 2.09, such transfer or exchange shall be accomplished upon
receipt by the Trustee from the registered owner thereof of the 2015 Bonds to be transferred or
exchanged and appropriate instruments of transfer to the permitted transferee, all in accordance
with the applicable provisions of Sections 2.05 and 2.06. In the event 2015 Bond certificates are
21 OHSUSA:761763646
issued to Bondholders other than Cede & Co., its successor as nominee for DTC as holder of all
the 2015 Bonds, another securities depository as holder of all the 2015 Bonds, or the nominee of
such successor securities depository, the provisions of Sections 2.05 and 2.06 shall also apply to,
among other things, the registration, exchange and transfer of the 2015 Bonds and the method of
payment of principal of, premium, if any, and interest on the 2015 Bonds.
ARTICLE III
ISSUANCE OF 2015 BONDS
SECTION 3.01 Procedure for the Issuance of 2015 Bonds. At any time after the
sale of the 2015 Bonds in accordance with the Act, the Authority shall execute the 2015 Bonds
for issuance hereunder and shall deliver them to the Trustee, and thereupon the 2015 Bonds shall
be authenticated and delivered by the Trustee to the purchaser thereof upon the Written Request
of the Authority and upon receipt of payment therefor from the purchaser th ereof. Upon receipt
of payment for the 2015 Bonds from the purchaser thereof, the Trustee shall, unless otherwise
instructed by the Authority, apply the proceeds received from such sale to the following
respective parties or to the following respective accounts, in the following order of priority:
(i) transfer the amount of $____________ to the Escrow Agent for
deposit to the Escrow Fund to refund the 2015 Refunded Bonds;
(ii) deposit the sum of $__________ to the Costs of Issuance Fund,
which fund is hereby created and which fund the Trustee hereby covenants and
agrees to maintain. All money in the Costs of Issuance Fund shall be used and
withdrawn by the Trustee to pay the Costs of Issuance of the Bonds upon receipt
of a Written Request of the Authority, in substantially the form attached hereto as
Exhibit C, filed with the Trustee, each of which shall be sequentially numbered
and shall state the person(s) to whom payment is to be made, the amount(s) to be
paid, the purpose(s) for which the obligation(s) was incurred and that such
payment is a proper charge against said fund. On __________, or upon the earlier
Written Request of the Authority, any remaining balance in the Costs of Issuance
Fund shall be transferred to the 2015 Series A Project Account within the Project
Fund and the Costs of Issuance Fund shall be closed;
(iii) deposit the amount of $____________ in the 2015 Series A
Project Account within the Project Fund; and
(iv) deposit the 2015 Reserve Facility in the 2015 Reserve Account
within the Reserve Fund.
SECTION 3.02 Project Fund. The Trustee hereby agrees to establish and maintain
so long as any Bonds are Outstanding the Project Fund and, within the Project Fund, a Project
Account for each Series of Bonds (the initial payment into which is provided for in Section
3.01). The moneys in the Project Fund shall be disbursed by the Trustee upon the Written
Request of the County in substantially the form of Exhibit B hereto filed with the Trustee, for the
payment of Project Costs relating to the Project.
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Before any payment is made from the Project Fund, there shall be filed with the
Trustee a Written Request of the County showing with respect to each payment to be made:
(i) the item number of the payment;
(ii) the name of the person to whom payment is due;
(iii) the amount to be paid; and
(iv) the purpose for which the obligation to be paid was incurred.
Each such Written Request shall be sufficient evidence to the Trustee and shall
state:
(a) that obligations in the stated amounts have been incurred by the County,
and that each item thereof is a proper charge against the Project Fund and has not been
the subject of a prior requisition; and
(b) that there has not been filed with or served upon the County notice of any
lien, right to lien or attachment upon, or claim affecting the right to receive payment of,
any of the moneys payable to any of the persons named in such Written Request, which
has not been released or will not be released simultaneously with the payment of such
obligation, other than materialmen’s or mechanics’ liens accruing by mere operation of
law.
Upon receipt of each such Written Request, the Trustee will pay the amount set
forth in such Written Request as directed by the terms thereof. The Trustee need not make any
such payment if it has received notice of any lien, right to lien or attachment upon, or claim
affecting the right to receive payment of, any of the moneys to be so paid, which has not been
released or will not be released simultaneously with such payment.
All interest earnings on amounts on deposit in the Project Fund shall be deposited
therein. Upon the completion of the 2015 Project, any amounts remaining in the 2015 Series A
Project Account shall be expended on Capital Projects as specified by the County, subject to the
receipt by the Authority of an Opinion of Counsel that such expenditures will not cause the
interest on the 2015 Bonds to be included in gross income for purposes of federal income
taxation.
SECTION 3.03 Conditions for the Issuance of Additional Bonds. The Authority
may at any time issue Additional Bonds pursuant to a Supplemental Trust Agreement, payable
from the Revenues as provided herein and secured by a pledge of and charge and lien upon the
Revenues as provided herein equal to the pledge, charge and lien securing the Outstanding
Bonds theretofore issued hereunder, but only subject to the following specific conditions, which
are hereby made conditions precedent to the issuance of any such Additional Bonds:
(a) The Authority shall be in compliance with all agreements and covenants
contained herein.
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(b) The Supplemental Trust Agreement shall require that the proceeds of the
sale of such Additional Bonds shall be applied to the acquisition (by purchase or lease) or
construction of facilities to be added to the Facilities or for the refunding of Outstanding Bonds.
(c) The aggregate principal amount of Bonds issued and at any time
Outstanding hereunder shall not exceed any limit imposed by law, by this Trust Agreement or by
any Supplemental Trust Agreement.
(d) The Facilities Lease shall have been amended, if necessary, and duly
recorded in the official records of the County Recorder of the County, so that the Base Rental
Payments payable by the County thereunder in each Fiscal Year shall at least equal Debt Service,
including Debt Service on the Additional Bonds, in each Fiscal Year.
(e) The Facilities Lease shall have been amended and duly recorded in the
official records of the County Recorder of the County, so as to lease to the County the project
being financed from the proceeds of such Additional Bonds or facilities of comparable worth and
economic life.
(f) If the proceeds of such Additional Bonds are to be used, in whole or in
part, to finance construction on real property not described in the Facilities Lease and which are
to be the leased Facilities hereunder or the additional Facilities to be leased are not situated on
property described in the Facilities Lease, (1) the Site Lease shall have been amended so as to
lease to the Authority such additional real property; and (2) the Facilities Lease shall have been
amended so as to lease to the County such additional real property.
(g) If the additional Facilities to be leased are to be constructed, the Trustee
shall be paid an amount of capitalized interest on the Additional Bonds for the estimated period
of construction and six months thereafter.
(h) If a Supplemental Trust Agreement shall provide for a Reserve Fund, then,
if necessary, that from such proceeds or other sources an amount shall be deposited in the
Reserve Fund so that following such deposit there shall be on deposit in the R eserve Fund an
amount at least equal to the Reserve Fund Requirement.
SECTION 3.04 Proceedings for Authorization of Additional Bonds. Whenever the
Authority and the County shall determine to execute and deliver any Additional Bonds pursuant
to Section 3.03, the Authority and the Trustee shall enter into a Supplemental Trust Agreement
providing for the issuance of such Additional Bonds, specifying the maximum principal amount
of such Additional Bonds and prescribing the terms and conditions of such Additional Bonds.
The Supplemental Trust Agreement shall prescribe the form or forms of such
Additional Bonds and, subject to the provisions of Section 3.03, shall provide for the distinctive
designation, denominations, method of numbering, dates, payment dates, interest rates (or
method of determining the rates, if variable), interest payment dates, provisions for redemption
(if desired) and places of payment of principal and interest.
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Before such Additional Bonds shall be issued, the County and the Authority shall
file or cause to be filed the following documents with the Trustee:
(a) An Opinion of Counsel setting forth that (1) such Counsel has examined
the Supplemental Trust Agreement and the amendment to the Facilities Lease and the Site Lease
required by Section 3.03(d), (e), and (f); (2) the execution and delivery of the Additional Bonds
have been sufficiently and duly authorized by the County and the Authority; (3) said amendment
to the Facilities Lease and the Site Lease if any, when duly executed by the County and the
Authority, will be valid and binding obligations of the County and the Authority; and (4) all the
conditions to the issuance of the Additional Bonds set forth in this Trust Agreement have been
satisfied.
(b) A Certificate of the Authority stating that the requirements of Section 3.03
have been met.
(c) A certified copy of a resolution or ordinance of the County authorizing the
execution of the amendments to the Facilities Lease required by Section 3.03(d), (e), and (f).
(d) An executed counterpart or duly authenticated copy of any amendment to
the Facilities Lease required by Section 3.03(d), (e), and (f).
(e) A Certificate of the County stating that the insurance required by Sections
5.01, 5.02 and 5.03 of the Facilities Lease is in effect.
(f) If the proceeds of such Additional Bonds are to be used, in whole or in
part, to finance construction or acquire facilities on real property not then described in the
Facilities Lease, an executed counterpart or duly authenticated copy of the Site Lease required by
Section 3.03(f) that has been duly recorded in the official records of the County Recorder of the
County.
(g) A title insurance policy insuring the Authority’s leasehold or fee title in
the real property on which the Facilities are located, and, if the proceeds of such Additional
Bonds are to be used to finance construction on real property not then described in the Facilities
Lease and such project is to be the Facilities leased hereunder, a title insurance policy insuring
the Authority’s leasehold or fee title in such real property, such title insurance policy to be in an
amount at least equal to the aggregate amount of outstanding Bonds (including Additional Bonds
to be issued) or, at the option of the Authority, an opinion of counsel or Certificate of the County
or such other evidence of the Authority’s or County’s leasehold or fee interest in such real
property as shall be acceptable to the Authority.
Upon the delivery to the Trustee of the foregoing instruments and upon the
Trustee’s receipt of Certificates of the County and of the Authority stating that all applicable
provisions of this Trust Agreement have been complied with (so as to permit the issuance of the
Additional Bonds in accordance with the Supplemental Trust Agreement then delivered to the
Trustee), the Trustee shall authenticate and deliver said Additional Bonds in the aggregate
principal amount specified in such Supplemental Trust Agreement to, or upon the Written
Request of, the Authority.
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SECTION 3.05 Limitations on the Issuance of Obligations Payable From
Revenues. The Authority will not, so long as any of the Bonds are Outstanding, issue any
obligations or securities, however denominated, payable in whole or in part from Revenues
except the following:
(a) Bonds of any Series authorized in accordance with the provisions of
Section 3.04;
(b) Obligations which are junior and subordinate to the payment of the
principal, premium, interest and reserve fund requirements, if any, for the Bonds and which
subordinated obligations are payable as to principal, premium, interest and reserve fund
requirements, if any, only out of Revenues after the prior payment of all amounts then required
to be paid hereunder from Revenues for principal, premium, interest and reserve fund
requirements, if any, for the Bonds, as the same become due and payable and at the times and in
the manner as required in this Trust Agreement.
ARTICLE IV
REDEMPTION OF BONDS
SECTION 4.01 Extraordinary Redemption. The 2015 Bonds are subject to
redemption by the Authority on any date prior to their respective stated maturities, upon notice as
hereinafter provided, as a whole or in part by lot within each stated maturity in integral multiples
of Authorized Denominations, from prepayments made by the County pursuant to Section
7.02(a) of the Facilities Lease, at a redemption price equal to the sum of the principal amount
thereof, without premium, plus accrued interest thereon to the Redemption Date. Whenever less
than all of the Outstanding Bonds are to be redeemed on any one date, the Trustee shall select, in
accordance with written directions from the Authority, the Bonds to be redeemed in part from the
Outstanding Bonds so that the aggregate annual principal amount of and interest on Bonds which
shall be payable after such Redemption Date shall be as nearly proportional as practicable to the
aggregate annual principal amount of and interest on Bonds Outstanding prior to such
Redemption Date.
SECTION 4.02 Optional Redemption. The 2015 Series A Bonds maturing on or
prior to June 1, 20__ are not subject to optional redemption. The 2015 Series A Bonds maturing
on or after June 1, 20__, are subject to redemption prior to their respective stated maturities at
the written direction of the Authority, from any moneys deposited by the Authority or the
County, as a whole or in part on any date (in such maturities as are designated in writing by the
Authority to the Trustee) on or after June 1, 20__, at a redemption price equal to 100% of the
principal amount of the 2015 Series A Bonds called for redemption, plus accrued interest to the
date fixed for redemption, without premium.
The 2015 Series B Bonds maturing on or prior to June 1, 20__ are not subject to
optional redemption. The 2015 Series B Bonds maturing on or after June 1, 20__, are subject to
redemption prior to their respective stated maturities at the written direction of the Authority,
from any moneys deposited by the Authority or the County, as a whole or in part on any date (in
such maturities as are designated in writing by the Authority to the Trustee) on or after June 1,
26 OHSUSA:761763646
20__, at a redemption price equal to 100% of the principal amount of the 2015 Series B Bonds
called for redemption, plus accrued interest to the date fixed for redemption, without premium.
SECTION 4.03 Mandatory Sinking Fund Redemption. The 2015 Term Bonds,
upon notice as hereinafter provided, shall also be subject to mandatory sinking fund redemption
prior to maturity, in part on June 1 of each year on the Mandatory Sinking Account Payment
Dates specified in Section 5.03, by lot, from and in the amount of the mandatory sinking account
payments set forth in Section 5.03 at a redemption price equal to the sum of the principal amount
thereof plus accrued interest thereon to the redemption date, without premium.
SECTION 4.04 Selection of Bonds for Redemption. The Authority shall designate
which maturities of Bonds and the principal amount of Bonds which are to be redeemed (other
than Bonds subject to redemption pursuant to Section 4.03). If less than all Outstanding Bonds
of the same Series maturing by their terms on any one date are to be redeemed at any one time,
the Trustee shall select the Bonds of such maturity date to be redeemed by lot and shall promptly
notify the Authority in writing of the numbers of the Bonds so selected for redemption. For
purposes of such selection, Bonds shall be deemed to be composed of multiples of minimum
Authorized Denominations and any such multiple may be separately redeemed. In the event
Term Bonds are designated for redemption, the Authority may designate which sinking account
payments are allocated to such redemption.
SECTION 4.05 Notice of Redemption; Cancellation; Effect of Redemption.
Notice of redemption shall be mailed by first-class mail by the Trustee, not less than twenty (20)
nor more than sixty (60) days prior to the redemption date to the respective Bondholders of the
Bonds designated for redemption at their addresses appearing on the registration books of the
Trustee. Each notice of redemption shall state the date of such notice, the date of issue of the
Bonds, the Series, the redemption date, the Redemption Price, the place or places of redemption
(including the name and appropriate address of the Trustee), the CUSIP number (if any) of the
maturity date or maturities, and, if less than all of any such maturity is to be redeemed, the
distinctive certificate numbers of the Bonds of such maturity, to be redeemed and, in the case of
Bonds to be redeemed in part only, the respective portions of the principal amount thereof to be
redeemed. Each such notice shall also state that on said date there will become due and payable
on each of said Bonds the Redemption Price thereof, together with interest accrued thereon to the
redemption date, and that from and after such redemption date interest thereon shall cease to
accrue, and shall require that such Bonds be then surrendered at the address of the Trustee
specified in the redemption notice. Failure to receive such notice shall not invalidate any of the
proceedings taken in connection with such redemption.
The Trustee may give a conditional notice of redemption prior to the receipt of all
funds or satisfaction of all conditions necessary to effect the redemption, provided that
redemption shall not occur unless and until all conditions have been satisfied and the Trustee has
on deposit and available or, if applicable, has received, all of the funds necessary to effect the
redemption; otherwise, such redemption shall be cancelled by the Trustee and the Trustee shall
mail notice of such cancellation to the recipients of the notice of redemption being cancelled.
The Authority may, at its option, on or prior to the date fixed for redemption in
any notice of optional redemption, rescind and cancel such notice of redemption by Written
27 OHSUSA:761763646
Request to the Trustee and the Trustee shall mail notice of such cancellation to the recipients of
the notice of redemption being cancelled.
If notice of redemption has been duly given as aforesaid and money for the
payment of the Redemption Price of the Bonds called for redemption plus accrued interest to the
redemption date is held by the Trustee, then on the redemption date designated in such notice
Bonds so called for redemption shall become due and payable, and from and after the date so
designated interest on such Bonds shall cease to accrue, and the Bondholders of such Bonds shall
have no rights in respect thereof except to receive payment of the Redemption Price thereof plus
accrued interest to the Redemption Date.
All Bonds redeemed pursuant to the provisions of this Article shall be cancelled
by the Trustee and shall be destroyed with a certificate of destruction furnished to the Authority
upon its request and shall not be reissued.
ARTICLE V
REVENUES
SECTION 5.01 Pledge of Revenues.
(a) All Revenues, any other amounts (including proceeds of the sale of the
Bonds) held by the Trustee in any fund or account established hereunder (other than amounts on
deposit in the Rebate Fund created pursuant to Section 6.03) and any other amounts (excluding
Additional Payments) received by the Authority in respect of the Facilities are hereby
irrevocably pledged and assigned to the payment of the interest and premium, if any, on and
principal of the Bonds as provided herein, and the Revenues and other amounts pledged
hereunder shall not be used for any other purpose while any of the Bonds remain Outstanding;
provided, however, that out of the Revenues and other moneys there may be applied such sums
for such purposes as are permitted hereunder. This pledge shall constitute a pledge of and charge
and first lien upon the Revenues, all other amounts pledged hereunder and all other moneys on
deposit in the funds and accounts established hereunder (excluding amounts on deposit in the
Rebate Fund created pursuant to Section 6.03) for the payment of the interest on and principal of
the Bonds in accordance with the terms hereof and thereof.
(b) At least three (3) Business Days prior to each date on which a Base Rental
Payment is due, pursuant to the Facilities Lease, the Trustee shall notify the County of the
amount of the installment of Base Rental Payment needed to pay the principal of and interest on
the Bonds due on the next following Interest Payment Date. Any failure to send such notice
shall not affect the County’s obligation to make timely payments of installments of Base Rental
Payments.
SECTION 5.02 Receipt and Deposit of Revenues in the Revenue Fund. In order to
carry out and effectuate the pledge, assignment, charge and lien contained herein, the Authority
agrees and covenants that all Revenues and all other amounts pledged hereunder when and as
received shall be received by the Authority in trust hereunder for the benefit of the Bondholders
and shall be transferred when and as received by the Authority to the Trustee for deposit in the
28 OHSUSA:761763646
Revenue Fund (the “Revenue Fund”), which fund is hereby created and which fund the Trustee
hereby agrees and covenants to maintain in trust for Bondholders so long as any Bonds shall be
Outstanding hereunder. The County has been directed to pay all Base Rental Payments directly
to the Trustee. If the Authority receives any Base Rental Payments, it shall hold the same in trust
as agent of the Trustee and shall immediately transfer such Base Rental Payments to the Trustee.
All Revenues and all other amounts pledged and assigned hereunder shall be accounted for
through and held in trust in the Revenue Fund, and the Trustee shall have no beneficial right or
interest in any of the Revenues except only as herein provided. All Revenues and all other
amounts pledged and assigned hereunder, whether received by the Authority in trust or deposited
with the Trustee as herein provided, shall nevertheless be allocated, applied and disbursed solely
to the purposes and uses hereinafter in this Article set forth, and shall be accounted for separately
and apart from all other accounts, funds, money or other resources of the Trustee.
SECTION 5.03 Establishment and Maintenance of Accounts for Use of Money in
the Revenue Fund; Reserve Fund
(a) Revenue Fund. Subject to Section 6.03, all money in the Revenue Fund
shall be set aside by the Trustee in the following respective special accounts or funds within the
Revenue Fund (each of which is hereby created and each of which the Trustee hereby covenants
and agrees to cause to be maintained) in the following order of priority:
(1) Interest Account, and
(2) Principal Account.
All money in each of such accounts shall be held in trust by the Trustee and shall be applied,
used and withdrawn only for the purposes hereinafter authorized in this Section. On each
Principal Payment Date, following payment of principal of and interest on the Bonds, any excess
amount on deposit in the Revenue Fund shall be transferred to the Reserve Fund to the extent
necessary to increase the amount therein to the Reserve Fund Requirement for all Bonds that
have a Reserve Fund Requirement and any excess shall be returned to the County as an excess
payment of Base Rental Payments.
(b) Interest Account. On or before each Interest Payment Date, the Trustee
shall set aside from the Revenue Fund and deposit in the Interest Account that am ount of money
which is equal to the amount of interest becoming due and payable on all Outstanding Bonds on
such Interest Payment Date.
No deposit need be made in the Interest Account if the amount contained therein
and available to pay interest on the Bonds is at least equal to the aggregate amount of interest
becoming due and payable on all Outstanding Bonds on such Interest Payment Date.
All money in the Interest Account shall be used and withdrawn by the Trustee
solely for the purpose of paying the interest on the Bonds as it shall become due and payable
(including accrued interest on any Bonds purchased or redeemed prior to maturity).
29 OHSUSA:761763646
(c) Principal Account. On or before each June 1, commencing June 1, 2016,
the Trustee shall set aside from the Revenue Fund and deposit in the Principal Account an
amount of money equal to the amount of all sinking fund payments required to be made on such
June 1 into the respective sinking fund accounts for all Outstanding Term Bonds and the
principal amount of all Outstanding Serial Bonds maturing on such June 1. On or before each
Redemption Date, the Trustee shall set aside from the Revenue Fund and deposit in the Principal
Account an amount of money equal to the Redemption Price required to be paid on such
Redemption Date.
No deposit need be made in the Principal Account if the amount contained therein
and available to pay principal of the Bonds is at least equal to the aggregate amount of the
principal of all Outstanding Serial Bonds maturing by their terms on such June 1 plus the
aggregate amount of all sinking fund payments required to be made on such June 1 for all
Outstanding Term Bonds.
The Trustee shall establish and maintain within the Principal Account a separate
subaccount for the Term Bonds of each Series and maturity, designated as the “____ Sinking
Account” (the “Sinking Account”), inserting therein the Series and maturity (if more than one
such account is established for such Series) designation of such Bonds. With respect to each
Sinking Account, on each mandatory sinking account payment date established for such Sinking
Account, the Trustee shall apply the mandatory sinking account payment required on that date to
the redemption (or payment at maturity, as the case may be) of Term Bonds of the Series and
maturity for which such Sinking Account was established, upon the notice and in the manner
provided in Article IV.
(i) The Trustee shall establish and maintain within the Principal Account a
Sinking Account for the 2015 Series A Term Bonds maturing on June 1, 20__. Subject to the
terms and conditions set forth in this Section and Section 4.04, the Term Bonds maturing on
June 1, 20__, shall be redeemed (or paid at maturity, as the case may be) by application of
mandatory sinking account payments in the amounts and upon the dates as follows:
2015 Series A 20__Sinking Account
Mandatory Sinking Account
Payment Date (June 1)
Mandatory Sinking
Account Payments
__________________
*Maturity
If the 2015 Series A Term Bonds are optionally redeemed in part, the
Authority may designate the Mandatory Sinking Account Payments to be allocated to such
optional redemption.
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(ii) The Trustee shall establish and maintain within the Principal Account a
Sinking Account for the 2015 Series B Term Bonds maturing on June 1, 20__. Subject to the
terms and conditions set forth in this Section and Section 4.04, the Term Bonds maturing on
June 1, 20__, shall be redeemed (or paid at maturity, as the case may be) by application of
mandatory sinking account payments in the amounts and upon the dates as follows:
2015 Series B 20__ Sinking Account
Mandatory Sinking Account
Payment Date (June 1)
Mandatory Sinking
Account Payments
__________________
*Maturity
If the 2015 Series B Term Bonds are optionally redeemed in part, the
Authority may designate the Mandatory Sinking Account Payments to be allocated to such
optional redemption.
All money in the Principal Account shall be used and withdrawn by the Trustee
solely for the purpose of paying the principal or Redemption Price of the Bonds as it shall
become due and payable, whether at maturity or redemption, except that any money in any
Sinking Account shall be used and withdrawn by the Trustee only to redeem or to pay Term
Bonds for which such Sinking Account was created.
(d) Reserve Fund. The Trustee hereby agrees to establish and maintain the
Reserve Fund, and to establish and maintain the 2015 Reserve Account within the Reserve Fund.
The Authority shall satisfy the Reserve Fund Requirement for the 2015 Bonds by depositing the
2015 Reserve Facility with the Trustee. If a Supplemental Trust Agreement establishes a
Reserve Requirement for a Series of Bonds, the Trustee shall establish, maintain and hold in trust
an account within the Reserve Fund solely for the benefit of those Bonds. On the date of
issuance of any such additional Bonds, there shall be deposited in the account money or a reserve
facility meeting the requirements of the Supplemental Trust Agreement in an amount equal to the
Reserve Fund Requirement for the Series of Bonds secured by that account.
Moneys in an account in the Reserve Fund shall be used and withdrawn by the
Trustee solely for the purposes of paying principal of and interest on the Bonds for which such
account is held when such principal and interest are due if insufficient moneys for the payment
thereof are on deposit in the Principal Account and the Interest Account. So long as the
Authority is not in default hereunder, any cash amounts in the Reserve Fund in excess of t he
Reserve Fund Requirement shall be withdrawn from the Reserve Fund and transferred to the
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Revenue Fund on each Interest Payment Date, following the payment of any amounts due on
such date.
If the Reserve Fund Requirement is satisfied by a reserve facility, the Trustee
shall draw on such reserve facility in accordance with its terms, in a timely manner, to the extent
necessary to pay the principal of and interest on the Bonds for which such account is held . The
2015 Reserve Facility is only available to pay the principal of and interest on the 2015 Bonds.
SECTION 5.04 Application of Insurance Proceeds. In the event of any damage to
or destruction of any part of the Facilities covered by insurance, the Aut hority, shall cause the
proceeds of such insurance to be utilized for the repair, reconstruction or replacement of the
damaged or destroyed portion of the Facilities, and the Trustee shall hold said proceeds in a fund
established by the Trustee for such purpose separate and apart from all other funds designated
the “Insurance and Condemnation Fund”, to the end that such proceeds shall be applied to the
repair, reconstruction or replacement of the Facilities to at least the same good order, repair and
condition as it was in prior to the damage or destruction, insofar as the same may be
accomplished by the use of said proceeds. The County shall file a Certificate of the County with
the Trustee that sufficient funds from insurance proceeds or from any funds legally available to
the County, or from any combination thereof, are available in the event it elects to repair,
reconstruct or replace the Facilities. The Trustee shall invest said proceeds in Permitted
Investments pursuant to the Written Request of the County, as agent for the Authority under the
Facilities Lease, and withdrawals of said proceeds shall be made from time to time upon the
filing with the Trustee of a Written Request of the County, stating that the County has expended
moneys or incurred liabilities in an amount equal to the amount therein stated for the purpose of
the repair, reconstruction or replacement of the Facilities, and specifying the items for which
such moneys were expended, or such liabilities were incurred, in reasonable detail. Any balance
of such proceeds not required for such repair, reconstruction or replacement and the proceeds of
use and occupancy insurance shall be paid to the Trustee as Base Rental Payments and applied in
the manner provided by Section 5.01. Alternatively, the County, if the proceeds of such
insurance together with any other moneys then available for such purpose (including allocable
portions of the Reserve Fund) are sufficient to prepay all, in case of damage or destruction in
whole of the Facilities, or that portion, in the case of partial damage or destruction of the
Facilities, of the Base Rental Payments and all other amounts relating to the damaged or
destroyed portion of the Facilities, may elect not to repair, reconstruct or replace the damaged or
destroyed portion of the Facilities and thereupon shall cause said proceeds to be used for the
redemption of Outstanding Bonds pursuant to the applicable provisions of Section 4.01. The
County shall not apply the proceeds of insurance as set forth in this Section 5.04 to redeem the
Bonds in part due to damage or destruction of a portion of the Facilities unless the Base Rental
Payments on the undamaged portion of the Facilities will be sufficient to pay the scheduled
principal and interest on the Bonds remaining unpaid after such redemption.
SECTION 5.05 Deposit and Investments of Money in Accounts and Funds.
Subject to Section 6.03, all money held by the Trustee in any of the accounts or funds established
pursuant hereto shall be invested in Permitted Investments at the Written Request of the
Authority or, if no instructions are received, in money market funds described in clause (5) of the
definition of Permitted Investments. Such investments shall, as nearly as practicable, mature on
32 OHSUSA:761763646
or before the dates on which such money is anticipated to be needed for disbursement hereunder;
provided, however, that moneys in the Reserve Fund shall be invested in Permitted Investments
with a term to maturity not exceeding five (5) years. For purposes of this restriction, Permitted
Investments containing a repurchase option or put option by the investor shall be treated as
having a maturity of no longer than such option. Unless otherwise instructed by the Authority,
all interest or profits received on any money so invested shall be deposited first in the Reserve
Fund, to the extent necessary to make amounts on deposit in the Reserve Fund equal to the
Reserve Fund Requirement for all Bonds that have a Reserve Fund Requirement, and then in the
Revenue Fund; provided that, with respect to the Project Fund, earnings on amounts in such fund
shall be credited to such fund until completion of the respective Projects. The Trustee shall
value Permitted Investments held in the Reserve Fund no later than June 1 and December 1 in
each year; provided that for purposes of this Section the value of any such Permitted Investment
shall be an amount equal to the lesser of the cost or the fair market value of such Permi tted
Investment. The Trustee and its affiliates may act as principal, agent, sponsor or advisor with
respect to any investments. The Trustee shall not be liable for any losses on investments made in
accordance with the terms and provisions of this Trust Agreement.
Investments purchased with funds on deposit in the Revenue Fund shall mature
not later than the payment date or redemption date, as appropriate, immediately succeeding the
investment.
Subject to Section 6.03, investments in any and all funds and accounts except for
the Rebate Fund may be commingled for purposes of making, holding and disposing of
investments, notwithstanding provisions herein for transfer to or holding in particular funds and
accounts amounts received or held by the Trustee hereunder, provided that the Trustee shall at all
times account for such investments strictly in accordance with the funds and accounts to which
they are credited and otherwise as provided in this Trust Agreement.
The Authority acknowledges that to the extent regulations of the Comptroller of
the Currency or other applicable regulatory entity grant the Authority the right to receive
brokerage confirmations of security transactions as they occur, the Authority specifically waives
receipt of such confirmations to the extent permitted by law. The Trustee will furnish the
Authority periodic cash transaction statements which include detail for all investment
transactions made by the Trustee hereunder.
ARTICLE VI
COVENANTS OF THE AUTHORITY
SECTION 6.01 Punctual Payment and Performance. The Authority will
punctually pay out of the Revenues the interest on and principal of and redemption premiums, if
any, to become due on every Bond issued hereunder in strict conformity with the terms hereof
and of the Bonds, and will faithfully observe and perform all the agreements and covenants to be
observed or performed by the Authority contained herein and in the Bonds.
SECTION 6.02 Against Encumbrances. The Authority will not make any pledge
or assignment of or place any charge or lien upon the Revenues except as provided in Section
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5.01, and will not issue any bonds, notes or obligations payable from the Revenues or secured by
a pledge of or charge or lien upon the Revenues except as provided in Section 3.04.
SECTION 6.03 Rebate Fund.
(a) In addition to the accounts created pursuant to Section 5.03, the Trustee
shall establish and maintain a fund separate from any other fund or account established and
maintained hereunder designated as the Rebate Fund. There shall be deposited in the Rebate
Fund such amounts as are required to be deposited therein pursuant to the Tax Certifi cate. All
money at any time deposited in the Rebate Fund shall be held by the Trustee in trust, to the
extent required to satisfy the Rebate Requirement (as defined in the Tax Certificate), for payment
to the United States of America. Notwithstanding the provisions of Sections 5.01, 5.02, 5.05,
9.01 and 10.01 relating to the pledge of Revenues, the allocation of money in the Revenue Fund,
the investments of money in any fund or account, the application of funds upon acceleration and
the defeasance of Outstanding Bonds, all amounts required to be deposited into or on deposit in
the Rebate Fund shall be governed exclusively by this Section 6.03 and by the Tax Certificate
(which is incorporated herein by reference). The Trustee shall be deemed conclusively to have
complied with such provisions if it follows the written directions of the Authority, and shall have
no liability or responsibility to enforce compliance by the Authority with the terms of the Tax
Certificate.
(b) Any funds remaining in the Rebate Fund with respect to a Series of Bonds
after redemption and payment of all such Series of Bonds and all other amounts due hereunder or
under the Facilities Lease relating to such Series of Bonds, or provision made therefor
satisfactory to the Trustee, including accrued interest and payment of any applicable fees and
expenses of the Trustee and satisfaction of the Rebate Requirement (as defined in the Tax
Certificate), shall be withdrawn by the Trustee and remitted to or upon the Written Request of
the Authority.
SECTION 6.04 Tax Covenants.
(a) The Authority hereby covenants that it shall not take any action or
inaction, or fail to take any action, or permit any action to be taken on behalf of the Authority or
cause or permit any circumstances within its control to arise or continue, if such action or
inaction would cause any of the Bonds to be treated as an obligation not described in Section
103(a) of the Code. This covenant shall survive the payment in full of the Bonds.
(b) In the event that at any time the Authority is of the opinion that for
purposes of this Section it is necessary to restrict or to limit the yield on the investment of any
moneys held by the Trustee under this Trust Agreement, the Authority shall so instruct the
Trustee in a Request of the Authority accompanied by a supporting Opinion of Bond Counsel,
and the Trustee shall take such action as may be necessary in accordance with such instructions.
(c) Notwithstanding any provisions of this Section, if the Authority shall
provide to the Trustee an Opinion of Counsel that any specified action required under this
Section or the Tax Certificate is no longer required or that some further or different action is
required to maintain the exclusion from federal income tax of interest on the Bonds, the
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Authority and the Trustee may conclusively rely on such opinion in complying with the
requirements of this Section and the Tax Certificate, and, notwithstanding Article IX hereof, the
covenants hereunder shall be deemed to be modified to that extent.
(d) The foregoing provisions of this Section 6.04 shall not be applicable to
any Series of Bonds or the proceeds thereof that the Authority determines upon the issuance
thereof are to be taxable bonds, the interest on which is intended to be in cluded in the gross
income of the Owner thereof for federal income tax purposes.
SECTION 6.05 Accounting Records and Reports. The Trustee will keep or cause
to be kept proper books of record and accounts in which complete and correct entries shall be
made of all transactions relating to the receipts, disbursements, allocation and application of the
Revenues, and such books shall be available for inspection by the Authority at reasonable hours
and under reasonable conditions. The Trustee shall provide to the Authority monthly statements
covering the funds and accounts held pursuant to the Trust Agreement. Not more than one
hundred eighty (180) days after the close of each Fiscal Year, the Trustee shall furnish or cause
to be furnished to the Authority a complete financial statement (which may be in the form of the
Trustee’s customary account statements) covering receipts, disbursements, allocation and
application of Revenues for such Fiscal Year. The Authority shall keep or cause to be kept such
information as is required under the Tax Certificate.
SECTION 6.06 Prosecution and Defense of Suits. The Authority will defend
against every suit, action or proceeding at any time brought against the Trustee upon any claim
to the extent arising out of the receipt, application or disbursement of any of the Revenues or to
the extent involving the failure of the Authority to fulfill its obligations hereunder; provided, that
the Trustee or any affected Bondholder at its election may appear in and defend any such suit,
action or proceeding. The Authority will indemnify and hold harmless the Trustee against any
and all liability claimed or asserted by any person to the extent arising out of such failure by the
Authority, and will indemnify and hold harmless the Trustee against any reasonable attorney’s
fees or other reasonable expenses which it may incur in connection with any litigation to which it
may become a party by reason of its actions hereunder, except for any loss, cost, damage or
expense resulting from the negligence or willful misconduct by the Trustee. Notwithstanding
any contrary provision hereof, this covenant shall remain in full force and effect even though all
Bonds secured hereby may have been fully paid and satisfied.
SECTION 6.07 Further Assurances. Whenever and so often as reasonably
requested to do so by the Trustee or any Bondholder, the Authority will promptly execute and
deliver or cause to be executed and delivered all such other and further assurances, documents or
instruments, and promptly do or cause to be done all such other and further things as may be
necessary or reasonably required in order to further and more fully vest in the Bondholders all
rights, interests, powers, benefits, privileges and advantages conferred or intended to be
conferred upon them hereby.
SECTION 6.08 Maintenance of Revenues. The Authority will promptly collect all
rents and charges due for the occupancy or use of the Facilities as the same become due, and will
promptly and vigorously enforce its rights against any tenant or other person who does not pay
such rents or charges as they become due. Pursuant to Section 5.02 and the Facilities Lease, the
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County is to pay all Base Rental Payments directly to the Trustee. The Authority will at all times
maintain and vigorously enforce all of its rights under the Facilities Lease.
SECTION 6.09 Amendments to Facilities Lease and Site Lease.
(a) The Authority shall not supplement, amend, modify or terminate any of
the terms of the Facilities Lease, or consent to any such supplement, amendment, modification or
termination, without the prior written consent of the Trustee. The Trustee shall give such written
consent if such supplement, amendment, modification or termination (a) will not materially
adversely affect the interests of the Bondholders or result in any material impairment of the
security hereby given for the payment of the Bonds (provided that such supplement, amendment
or modification shall not be deemed to have such adverse effect or to cause such material
impairment solely by reason of substitution of real property pursuant to Section 2.03 of the
Facilities Lease), (b) is to add to the agreements, conditions, covenants and terms required to be
observed or performed thereunder by any party thereto, or to surrender any right or power therein
reserved to the Authority or the County, (c) is to cure, correct or supplement any ambiguous or
defective provision contained therein, (d) is to accommodate any substitution in accordance with
Section 2.03 or prepayment in accordance with Section 7.02 of the Facilities Lease, (e) is to
modify the legal description of the Facilities to conform to the requirements of title insurance or
otherwise to add or delete property descriptions to reflect accurately the description of the
parcels intended or preferred to be included therein, or substituted for the Facilities pursuant to
the provisions of Section 2.03 of the Facilities Lease, or deleted due to prepayment pursuant to
the provisions of Section 7.02 of the Facilities Lease, or (f) if the Trustee first obtains the written
consent of the Bondholders of a majority in principal amount of the Bonds then Outstanding to
such supplement, amendment, modification or termination; provided, that no such supplement,
amendment, modification or termination shall reduce the amount of Base Rental Payments to be
made to the Authority or the Trustee by the County pursuant to the Facilities Lease to an amount
less than the scheduled principal and interest payments on the Outstanding Bonds, or extend the
time for making such payments, or permit the creation of any lien prior to or on a parity with the
lien created by this Trust Agreement on the Base Rental Payments (except as expressly provided
in the Facilities Lease), in each case without the written consent of all of the Bondholders of the
Bonds then Outstanding.
(b) The Authority shall not supplement, amend, modify or terminate any of
the terms of the Site Lease, or consent to any such supplement, amendment, modification or
termination, without the prior written consent of the Trustee. The Trustee shall give such written
consent if such supplement, amendment, modification or termination (a) will not materially
adversely affect the interests of the Bondholders or result in any material impairment of the
security hereby given for the payment of the Bonds, (b) is to add to the agreements, conditions,
covenants and terms required to be observed or performed thereunder by any party t hereto, or to
surrender any right or power therein reserved to the Authority or the County, (c) is to cure,
correct or supplement any ambiguous or defective provision contained therein, (d) is to modify
the legal description of the Facilities to conform to the requirements of title insurance or
otherwise to add or delete property descriptions to reflect accurately the description of the
parcels intended or preferred to be included therein, or substituted for the Facilities pursuant to
the provisions of Section 2.03 of the Facilities Lease, or deleted due to prepayment pursuant to
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the provisions of Section 7.02 of the Facilities Lease, or (e) if the Trustee first obtains the written
consent of the Bondholders of a majority in principal amount of the Bonds then Outstanding to
such supplement, amendment, modification or termination.
SECTION 6.10 Leasehold Estate. The Authority will be, on the date of the
delivery of the Bonds, the owner and lawfully possessed of the leasehold estate described in the
Site Lease, and the Facilities Lease will be, on the date of delivery of the Bonds, a valid
subsisting demise for the term therein set forth of the property which it purports to demise. At
the time of the delivery of the Bonds, the County will be the owner in fee simple of the premises
described in the Site Lease, the Site Lease will be lawfully made by the County and the
covenants contained in the Site Lease on the part of the County will be valid and binding. At the
time of the delivery of the Bonds, the Authority will have good right, full power and lawful
authority to lease said leasehold estate, in the manner and form provided in the Facilities Lease,
and the Facilities Lease will be duly and regularly executed.
Without allowance for any days of grace which may or might exist or be allowed
by law or granted pursuant to any terms or conditions of the Facilities Lease, the Authority will
in all respects promptly and faithfully keep, perform and comply with all the terms, provisions,
covenants, conditions and agreements of the Facilities Lease to be kept, performed and complied
with by it. The Authority will not do or permit anything to be done, or omit or refrain from
doing anything, in any case where any such act done or permitted to be done, or any such
omission of or refraining from action, would or might be a ground for declaring a forfeiture of
the Facilities Lease, or would or might be a ground for cancellation or termination of the
Facilities Lease by the lessee thereunder. The Authority will promptly deposit with the Trustee
(to be held by the Trustee until the title and rights of the Trustee under this Trust Agreement
shall be released or reconvened) any and all documentary evidence received by it showing
compliance with the provisions of the Facilities Lease to be performed by the Authority. The
Authority, immediately upon its receiving or giving any notice, communication or other
document in any way relating to or affecting the Facilities Lease, or the leasehold estate th ereby
created, which may or can in any manner affect the estate of the lessor or of the Authority in or
under the Facilities Lease, will deliver the same, or a copy thereof, to the Trustee.
SECTION 6.11 Compliance With Continuing Disclosure Agreement.
Pursuant to Section 8.08 of the Facilities Lease, the County has undertaken all responsibility for
compliance with continuing disclosure requirements, and the Authority shall have no liability to
the Owners of the Bonds or any other person with respect to S.E.C. Rule 15c2 -12.
Notwithstanding any other provision of this Trust Agreement, failure of the County to comply
with the Continuing Disclosure Agreement shall not be considered an Event of Default; however,
any Bondholder or Beneficial Owner may, and the Trustee at the request of any Participating
Underwriter (as defined in the Continuing Disclosure Agreement) or the Holders of at least 25%
aggregate principal amount of Bonds Outstanding and provided satisfactory indemnification is
provided to the Trustee, shall, take such actions as may be necessary and appropriate, including
seeking mandate or specific performance by court order, to cause the County to comply with its
obligations under Section 8.08 of the Facilities Lease or under this Section 6.11. For purposes of
this Section, “Beneficial Owner” means any person which has or shares the power, directly or
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indirectly, to make investment decisions concerning ownership of any Bonds (including persons
holding Bonds through nominees, depositories or other intermediaries).”
ARTICLE VII
EVENTS OF DEFAULT AND REMEDIES OF BONDHOLDERS
SECTION 7.01 Events of Default and Acceleration of Maturities. If one or more
of the following events (herein called “events of default”) shall happen, that is to say:
(a) if default shall be made by the Authority in the due and punctual payment
of the interest on any Bond when and as the same shall become due and payable;
(b) if default shall be made by the Authority in the due and punctual payment
of the principal or premium, if any, of any Bond when and as the same shall become due and
payable, whether at maturity as therein expressed or by proceedings for mandatory redemption;
(c) if default shall be made by the Authority in the performance of any of the
other agreements or covenants required herein to be performed by the Authority, and such
default shall have continued for a period of sixty (60) days or (or if the Authority notifies the
Trustee that in its reasonable opinion the failure stated in the notice can be corrected, but not
within such 60 day period, the failure will not constitute an event of default if the Authority
commences to cure the failure within such 60 day period and thereafter diligently and in good
faith cures such failure in a reasonable period of time);
(d) if the Authority shall file a petition or answer seeking arrangement or
reorganization under the federal bankruptcy laws or any other applicable law of the United States
of America or any state therein, or if a court of competent jurisdiction shall approve a petition
filed with or without the consent of the Authority seeking arrangement or reorganization under
the federal bankruptcy laws or any other applicable law of the United States of America or any
state therein, or if under the provisions of any other law for the relief or aid of debtors any court
of competent jurisdiction shall assume custody or control of the Authority or of the whole or any
substantial part of its property; or
(e) if an Event of Default has occurred under Section 6.01 of the Facilities
Lease;
then and in each and every such case during the continuance of such event of default the Trustee,
upon the written request of the Bondholders of not less than a majority in aggregate principal
amount of the Bonds then Outstanding shall, by notice in writing to the Authority, declare the
principal of all Bonds then Outstanding and the interest accrued thereon to be due and payable
immediately, and upon any such declaration the same shall become due and payable, anything
contained herein or in the Bonds to the contrary notwithstanding. The Trustee shall promptly
notify all Bondholders by first class mail of any such event of default which is continuing of
which a Responsible Officer has actual knowledge or written notice.
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This provision, however, is subject to the condition that if at any time after the
principal of the Bonds then Outstanding shall have been so declared due and payable and before
any judgment or decree for the payment of the money due shall have been obtained or entered
the Authority shall deposit with the Trustee a sum sufficient to pay all matured interest on all the
Bonds and all principal of the Bonds matured prior to such declaration and premium, if any, with
interest at the rate borne by such Bonds on such overdue interest and principal and premium, if
any, and the reasonable fees and expenses of the Trustee, and any and all other defaults known to
the Trustee (other than in the payment of interest on and principal of the Bonds due and payable
solely by reason of such declaration) shall have been made good or cured to the satisfaction of
the Trustee or provision deemed by the Trustee to be adequate shall have been made therefor,
then and in every such case the Trustee or the Bondholders of not less than a majority in
aggregate principal amount of Bonds then Outstanding, by written notice to the Authority and to
the Trustee, may on behalf of the Bondholders of all the Bonds then Outstanding rescind and
annul such declaration and its consequences; but no such rescission and annulment shall extend
to or shall affect any subsequent default or shall impair or exhaust any right or power consequent
thereon.
SECTION 7.02 Application of Funds Upon Acceleration. All moneys in the
accounts and funds provided in Sections 3.01, 3.02, 5.02, 5.03 and 5.04 upon the date of the
declaration of acceleration by the Trustee as provided in Section 7.01 and all Revenues (other
than Revenues on deposit in the Rebate Fund) thereafter received by the Authority hereunder
shall be transmitted to the Trustee and shall be applied by the Trustee in the following order:
First, to the payment of the reasonable fees, costs and expenses of the Trustee in
providing for the declaration of such event of default and carrying out its duties under this
Agreement, including reasonable compensation to their accountants and counsel together with
interest on any amounts advanced as provided herein and thereafter to the payment of the
reasonable costs and expenses of the Bondholders, if any, in carrying out the provisions of this
Article, including reasonable compensation to their accountants and counsel; and
Second, upon presentation of the several Bonds, and the stamping thereon of the
amount of the payment if only partially paid or upon the surrender thereof if fully paid, to the
payment of the whole amount then owing and unpaid upon the Bonds for interest and principal,
and premium, with (to the extent permitted by law) interest on the overdue interest and principal
and premium at the rate borne by such Bonds, and in case such money shall be insufficient to
pay in full the whole amount so owing and unpaid upon the Bonds, then to the payment of such
interest, principal and premium and (to the extent permitted by law) interest on overdue interest
and principal and premium without preference or priority among such interest, principal and
premium and interest on overdue interest and principal and premium ratably to the aggregate of
such interest, principal and premium and interest on overdue interest and principal and premium.
SECTION 7.03 Institution of Legal Proceedings by Trustee. If one or more of the
events of default shall happen and be continuing, the Trustee may, and upon the written request
of the Bondholders of a majority in principal amount of the Bonds then Outstanding, and in each
case upon being indemnified to its reasonable satisfaction therefor, shall, proceed to protect or
enforce its rights or the rights of the Bondholders of Bonds under this Trust Agreement and
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under Article VI of the Facilities Lease by a suit in equity or action at law, either for the specific
performance of any covenant or agreement contained herein, or in aid of the execution of any
power herein granted, or by mandamus or other appropriate proceeding for the enforcement of
any other legal or equitable remedy as the Trustee shall deem most effectual in support of any of
its rights and duties hereunder.
SECTION 7.04 Non-Waiver. Nothing in this Article or in any other provision
hereof or in the Bonds shall affect or impair the obligation of the Authority, which is absolute
and unconditional, to pay the interest on and principal of and redemption premiums, if any, on
the Bonds to the respective Bondholders of the Bonds at the respective d ates of maturity or upon
prior redemption as provided herein from the Revenues as provided herein pledged for such
payment, or shall affect or impair the right of such Bondholders, which is also absolute and
unconditional, to institute suit to enforce such payment by virtue of the contract embodied herein
and in the Bonds.
A waiver of any default or breach of duty or contract by the Trustee or any
Bondholder shall not affect any subsequent default or breach of duty or contract or impair any
rights or remedies on any such subsequent default or breach of duty or contract. No delay or
omission by the Trustee or any Bondholder to exercise any right or remedy accruing upon any
default or breach of duty or contract shall impair any such right or remedy or s hall be construed
to be a waiver of any such default or breach of duty or contract or an acquiescence therein, and
every right or remedy conferred upon the Bondholders by the Act or by this Article may be
enforced and exercised from time to time and as often as shall be deemed expedient by the
Trustee or the Bondholders.
If any action, proceeding or suit to enforce any right or exercise any remedy is
abandoned, the Authority, the Trustee and any Bondholder shall be restored to their former
positions, rights and remedies as if such action, proceeding or suit had not been brought or taken.
SECTION 7.05 Remedies Not Exclusive. No remedy herein conferred upon or
reserved to the Bondholders is intended to be exclusive of any other remedy, and each such
remedy shall be cumulative and shall be in addition to every other remedy given hereunder or
now or hereafter existing at law or in equity or by statute or otherwise and may be exercised
without exhausting and without regard to any other remedy conferred by the Act or any other
law.
SECTION 7.06 Limitation on Bondholders’ Right to Sue. No Bondholder of any
Bond issued hereunder shall have the right to institute any suit, action or proceeding at law or
equity, for any remedy under or upon this Trust Agreement, unless (a) such Bondholder shall
have previously given to the Trustee written notice of the occurrence of an event of default as
defined in Section 7.01; (b) the Bondholders of at least a majority in aggregate principal amount
of all the Bonds then Outstanding shall have made written request upon the Trustee to exercise
the powers hereinbefore granted or to institute such suit, action or proceeding in its own name;
(c) said Bondholders shall have tendered to the Trustee reasonable security or indemnity against
the costs, expenses and liabilities to be incurred in compliance with such request; and (d) the
Trustee shall have refused or omitted to comply with such request for a period of sixty (60) days
40 OHSUSA:761763646
after such request shall have been received by, and said tender of indemnity shall have been
made to, the Trustee.
Such notification, request, tender of indemnity and refusal or omission are hereby
declared, in every case, to be conditions precedent to the exercise by any Bondholder of Bonds
of any remedy hereunder; it being understood and intended that no one or more Bondholders of
Bonds shall have any right in any manner whatever by his or their action to enforce any right
under this Trust Agreement, except in the manner herein provided, and that all proceedings at
law or in equity to enforce any provision of this Trust Agreement shall be instituted, had and
maintained in the manner herein provided and for the equal benefit of all Bondholders of the
Outstanding Bonds.
ARTICLE VIII
THE TRUSTEE
SECTION 8.01 The Trustee. Wells Fargo Bank, National Association shall serve
as the initial Trustee for the Bonds for the purpose of receiving all money which the Authority is
required to deposit with the Trustee hereunder and for the purpose of allocating, applying and
using such money as provided herein and for the purpose of paying the interest on and principal
of and redemption premiums, if any, on the Bonds presented for payment, with the rights and
obligations provided herein.
The Authority, unless there exists any Event of Default as defined in Section 7.01,
may at any time remove the Trustee initially appointed and any successor thereto and may
appoint a successor or successors thereto by an instrument in writing; provided, that any such
successor shall be a bank, banking institution, or trust company, having (or whose parent holding
company has) a combined capital (exclusive of borrowed capital) and surplus of at least five
hundred million dollars ($500,000,000) and subject to supervision or examination by federal or
state authority. If such bank, banking institution, or trust company publishes a report of
condition at least annually, pursuant to law or to the requirements of any supervising or
examining authority above referred to, then for the purpose of this Section the combined capital
and surplus of such bank, banking institution, or trust company shall be deemed to be its
combined capital and surplus as set forth in its most recent report of condition so published. The
Trustee may at any time resign by giving written notice of such resignation to the Authority, and
by mailing by first class mail to the Bondholders notice of such resignation. Upon receiving
such notice of resignation, the Authority shall promptly appoint a successor Trustee by an
instrument in writing. Any removal or resignation of a Trustee and appointment of a successor
Trustee shall become effective only upon the acceptance of appointment by the successor
Trustee. The successor Trustee shall send notice of its acceptance by first class mail to the
Bondholders. If, within thirty (30) days after notice of the removal or resignation of the Trustee
no successor Trustee shall have been appointed and shall have accepted such appointment, the
removed or resigning Trustee may petition any court of competent jurisdiction for the
appointment of a successor Trustee, which court may thereupon, after such notice, if any, as it
may deem proper and prescribe and as may be required by law, appoint a successor Trustee
having the qualifications required hereby.
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The Trustee is hereby authorized to pay or redeem the Bonds when duly presented
for payment at maturity or on redemption prior to maturity. The Trustee shall cancel all Bonds
upon payment thereof or upon the surrender thereof by the Authority and shall destroy such
Bonds and a certificate of destruction shall be delivered to the Authority upon its request. The
Trustee shall keep accurate records of all Bonds paid and discharged and cancelled by it.
The Trustee shall, prior to an event of default, and after the curing or waiv er of all
events of default that may have occurred, perform such duties and only such duties as are
specifically set forth in this Trust Agreement and no implied duties or obligations shall be read
into this Trust Agreement. The Trustee shall, during the existence of any event of default (that
has not been cured or waived), exercise such of the rights and powers vested in it by this Trust
Agreement, and use the same degree of care and skill in their exercise, as a prudent man would
exercise or use under the circumstances in the conduct of his own affairs.
SECTION 8.02 Liability of Trustee. The recitals of facts, agreements and
covenants herein and in the Bonds shall be taken as recitals of facts, agreements and covenan ts
of the Authority, and the Trustee assumes no responsibility for the correctness of the same or
makes any representation as to the sufficiency or validity hereof or of the Bonds, or shall incur
any responsibility in respect thereof other than in connection with the rights or obligations
assigned to or imposed upon it herein, in the Bonds or in law or equity. The Trustee shall not be
liable in connection with the performance of its duties hereunder except for its own negligence or
willful misconduct.
The Trustee shall not be bound to recognize any person as the Bondholder of a
Bond unless and until such Bond is submitted for inspection, if required, and such Bondholder’s
title thereto satisfactorily established, if disputed.
The Trustee shall not be liable for any error of judgment made in good faith,
unless it shall be proved that the Trustee was negligent in ascertaining the pertinent facts.
The Trustee shall not be liable with respect to any action taken or omitted to be
taken by it in good faith in accordance with the direction of the Bondholders of not less than a
majority (or any lesser amount that may direct the Trustee in accordance with this Agreement) in
aggregate principal amount of the Bonds at the time Outstanding, relating to the time, method
and place of conducting any proceeding for any remedy available to the Trustee, or exercising
any trust or power conferred upon the Trustee under this Trust Agreement.
The Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Trust Agreement at the request, order or direction of any of the Bondholders
pursuant to the provisions of this Trust Agreement unless such Bondholders shall have offered to
the Trustee reasonable security or indemnity against the reasonable costs, expenses and liabilities
that may be incurred therein or thereby. The Trustee has no obligation or liability to the
Bondholders for the payment of the interest on, principal of or redemption premium, if any, with
respect to the Bonds from its own funds; but rather the Trustee’s obligations shall be limited to
the performance of its duties hereunder.
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The Trustee shall not be deemed to have knowledge of any event of default
(except payment defaults) unless and until a Responsible Officer shall have actual knowledge
thereof or a Responsible Officer of the Trustee shall have received written notice thereof at its
Principal Office. The Trustee shall not be bound to ascertain or inquire as to the performance or
observance of any of the terms, conditions, covenants or agreements herein or of any of the
documents executed in connection with the Bonds, or as to the existence of a default or event of
default thereunder. The Trustee shall not be responsible for the validity or effectiveness of any
collateral given to or held by it.
The Trustee may execute any of the trusts or powers hereunder or perform any
duties hereunder either directly or by or through attorneys-in-fact, agents or receivers and shall
not be answerable for the negligence or misconduct of any such attorney-in-fact, agent or
receiver selected by it with due care. The Trustee shall be entitled to advice of counsel and other
professionals concerning all matters of trust and its duty hereunder, but the Trustee shall not be
answerable for the professional malpractice of any attorney-in-law or certified public accountant
in connection with the rendering of his professional advice in accordance with the terms of this
Trust Agreement, if such attorney-in-law or certified public accountant was selected by the
Trustee with due care.
The Trustee shall not be concerned with or accountable to anyone for the
subsequent use or application of any moneys which shall be released or withdrawn in accordance
with the provisions hereof.
Whether or not therein expressly so provided, every provision of this Trust
Agreement, the Facilities Lease or related documents relating to the conduct or affecting the
liability of or affording protection to the Trustee shall be subject to the provisions of this Article.
The Trustee makes no representation or warranty, express or implied, as to the
title, value, design, compliance with specifications or legal requirements, quality, durability,
operation, condition, merchantability or fitness for any particular purpose for the use
contemplated by the Authority or County of the Facilities or the Project. In no event shall the
Trustee be liable for incidental, indirect, special or consequential damages in connection with or
arising from the Facilities Lease or this Trust Agreement for the existence, furnishing or use of
the Facilities or the Project.
The Trustee shall be protected in acting upon any notice, resolution, requisition,
request (including any Written Request of the Authority or the County), consent, order,
certificate, report, opinion, bond or other paper or document believed by it to be genuine and to
have been signed or presented by the proper party or parties. Before the Trustee acts or refrains
from acting, the Trustee may consult with counsel, who may be counsel of or to the Authority,
with regard to legal questions, and the opinion of such counsel shall be full and complete
authorization and protection in respect of any action taken or suffered by it hereunder in good
faith and in accordance therewith.
Whenever in the administration of its rights and obligations hereunder the Trustee
shall deem it necessary or desirable that a matter be established or proved prior to taking or
suffering any action hereunder, such matter (unless other evidence in respect thereof be herein
43 OHSUSA:761763646
specifically prescribed) may, in the absence of bad faith on the part of the Trustee, be deemed to
be conclusively proved and established by a Certificate of the Authority, which certificate shall
be full warrant to the Trustee for any action taken or suffered under the provisions hereof upon
the faith thereof, but in its discretion the Trustee may in lieu thereof accept other evidence of
such matter or may require such additional evidence as it may deem reasonable.
No provision of this Trust Agreement shall require the Trustee to expend or risk
its own funds or otherwise incur any financial liability in the performance or exercise of any of
its duties hereunder, or in the exercise of its rights or powers.
The Trustee is not responsible for the content of any official statement or any
other offering or disclosure material prepared in connection with the Bonds.
SECTION 8.03 Compensation and Indemnification of Trustee. The Authority
covenants to pay (but solely from Additional Payments) to the Trustee from time to time, and the
Trustee shall be entitled to, compensation for all services rendered by it in the exercise and
performance of any of the powers and duties hereunder of the Trustee, and the Authority will pay
or reimburse the Trustee upon its request for all reasonable expenses, disbursements and
advances incurred or made by the Trustee, in accordance with any of the provisions of this Trust
Agreement (including the reasonable compensation and the reasonable expenses and
disbursements of their counsel (including the allocated reasonable fees and disbursements of in -
house counsel) and of all persons not regularly in their employ) except any such expense,
disbursement or advance as may arise from their negligence or willful misconduct. The
Authority, to the extent permitted by law, shall indemnify, defend and hold harmless the Trustee
against any loss, damage, liability or expense incurred without negligence or willful misconduct
on the part of the Trustee arising out of or in connection with the acceptance or administration of
the trusts created hereby, including reasonable costs and expenses (including reasonable
attorneys’ fees and disbursements) of defending itself against or investigating any claim or
liability in connection with the exercise or performance of any of its powers hereunder. The
rights of the Trustee and the obligations of the Authority under this Section 8.03 shall survive the
discharge of the Bonds and this Trust Agreement and the resignation or removal of the Trustee.
ARTICLE IX
AMENDMENT OF THE TRUST AGREEMENT
SECTION 9.01 Amendment of the Trust Agreement.
(a) This Trust Agreement and the rights and obligations of the Authority and
of the Bondholders may be amended at any time by a Supplemental Trust Agreement which shall
become binding when the written consent of the Bondholders of a majority in aggregate principal
amount of the Bonds then Outstanding, exclusive of Bonds disqualified as provided in Section
9.02, are filed with the Trustee; provided that if such modification or amendment will, by its
terms, not take effect so long as any Bonds of any particular maturity or Series remain
Outstanding, the consent of the Owners of such Bonds shall not be required and such Bonds shall
not be deemed to be Outstanding for the purpose of any calculation of Bonds Outstanding under
this Section. No such amendment shall (1) extend the maturity of or reduce the interest rate on
44 OHSUSA:761763646
or amount of interest on or principal of or redemption premium, if any, on any Bond without the
express written consent of the Bondholder of such Bond, or (2) permit the creation by the
Authority of any pledge of or charge or lien upon the Revenues as provided herein superior to or
on a parity with the pledge, charge and lien created hereby for the benefit of the Bonds, or (3)
reduce the percentage of Bonds required for the written consent to any such amendment, or (4)
modify any rights or obligations of the Trustee, the Authority, or the County without their prior
written assent thereto, respectively. It shall not be necessary for the consent of the Bondholders
to approve the particular form of any Supplemental Trust Agreement, but it shall be sufficient if
such consent shall approve the substance thereof. Promptly after the execution by the Authority
and the Trustee of any Supplemental Trust Agreement pursuant to this subsection (a), the Trustee
shall mail a notice on behalf of the Authority, setting forth in general terms the substance of such
Supplemental Trust Agreement to the Bondholders at the addresses shown on the registration
books maintained by the Trustee. Any failure to give such notice, or any defect therein, shall
not, however, in any way impair or affect the validity of any such Supplemental Trust
Agreement.
(b) The Trust Agreement and the rights and obligations of the Authority and
of the Bondholders may also be amended at any time by a Supplemental Trust Agreement which
shall become binding upon adoption but without the consent of any Bondholders, for any
purpose that will not materially adversely affect the interests of the Bondholders, including
(without limitation) for any one or more of the following purposes:
(i) to add to the agreements and covenants required herein to be performed by
the Authority other agreements and covenants thereafter to be performed by the
Authority, or to surrender any right or power reserved herein to or conferred herein on the
Authority;
(ii) to make such provisions for the purpose of curing any ambiguity or of
correcting, curing or supplementing any defective provision contained herein or in regard
to questions arising hereunder which the Authority may deem desirable or necessary;
(iii) to provide for the issuance of any Additional Bonds and to provide the
terms of such Additional Bonds, subject to the conditions and upon compliance with the
procedure set forth in Article III (which shall be deemed not to adversely affect
Bondholders); or
(iv) to add to the agreements and covenants required herein, such agreements
and covenants as may be necessary to qualify the Trust Agreement under the Trust
Indenture Act of 1939.
SECTION 9.02 Disqualified Bonds. Bonds owned or held by or for the account of
the Authority shall not be deemed Outstanding for the purpose of any consent or other action or
any calculation of Outstanding Bonds provided in this Article, and shall not be entitled to
consent to or take any other action provided in this Article.
SECTION 9.03 Endorsement or Replacement of Bonds After Amendment. After
the effective date of any action taken as hereinabove provided, the Authority may determine that
45 OHSUSA:761763646
the Bonds may bear a notation by endorsement in form approved by the Authority as to such
action, and in that case upon demand of the Bondholder of any Outstanding Bonds and
presentation of his Bond for such purpose at the office of the Trustee a suitable notation as to
such action shall be made on such Bond. If the Authority shall so determine, new Bonds so
modified as, in the opinion of the Authority, shall be necessary to conform to such action shall be
prepared and executed, and in that case upon demand of the Bondholder of any Outstanding
Bond a new Bond or Bonds shall be exchanged at the office of the Trustee without cost to each
Bondholder for its Bond or Bonds then Outstanding upon surrender of such Outstanding Bonds.
SECTION 9.04 Notice to and Consent of Bondholders. If consent of the
Bondholders is required under the terms of this Trust Agreement for the amendment of this Trust
Agreement or for any other similar purpose, the Authority shall cause notice of the proposed
amendment to be given by first-class mail to the Owners of the Outstanding Bonds then shown
on the registration books for the Bonds. Such notice shall briefly set forth the nature of the
proposed amendment or other action and shall state that copies of any such amendment are on
file at the office of the Authority and the Principal Office of the Trustee for inspection by all
Bondholders. If, within sixty (60) days or such longer period as shall be prescribed by the
Authority following the mailing of such notice, the Owners of the requisite principal amount of
the Bonds Outstanding by instruments filed with the Authority shall have consented to the
amendment or other proposed action, then the Authority may adopt or execute, as appropriate,
such amendment or take such proposed action and the consent of the Bondholders shall thereby
be conclusively presumed. Such instruments filed with the Authority may include documents,
including Certificates of the Authority, stating that Owners of Bonds have consented to an
amendment by purchasing such Bonds if the official statement or other disclosure document
related to such purchase disclosed that the purchase of the Bonds was deemed to mean that the
Owners consented to the amendment.
SECTION 9.05 Amendment by Mutual Consent. The provisions of this Article
shall not prevent any Bondholder from accepting any amendment as to the particular Bonds held
by him, provided that due notation thereof is made on such Bonds.
ARTICLE X
DEFEASANCE
SECTION 10.01 Discharge of Bonds.
(a) If the Authority shall pay or cause to be paid or there shall otherwise be
paid to the Bondholders of all or any portion of the Outstanding Bonds the interest thereon and
principal thereof and redemption premiums, if any, thereon at the times and in the manner
stipulated herein and therein, and the Authority shall pay in full all other amo unts due hereunder
and under the Facilities Lease, then the Bondholders of such Bonds shall cease to be entitled to
the pledge of and charge and lien upon the Revenues as provided herein, and all agreements,
covenants and other obligations of the Authority to the Bondholders of such Bonds hereunder
shall thereupon cease, terminate and become void and be discharged and satisfied. In such event,
the Trustee shall execute and deliver to the Authority all such instruments as may be necessary or
desirable to evidence such discharge and satisfaction, the Trustee shall pay over or deliver to the
46 OHSUSA:761763646
Authority all money or securities held by it pursuant hereto which are not required for the
payment of the interest on and principal of and redemption premiums, if any, on such Bonds and
for the payment of all other amounts due hereunder and under the Facilities Lease.
(b) Any Outstanding Bonds shall prior to the maturity date or redemption date
thereof be deemed to have been paid within the meaning of and with the effect expressed in
subsection (a) of this Section if (1) in case any of such Bonds are to be redeemed on any date
prior to their maturity date, the Authority shall have given to the Trustee in form satisfactory to it
irrevocable instructions to provide notice in accordance with Section 4.05, (2) there shall have
been deposited with the Trustee (A) cash in an amount which shall be sufficient and/or
(B) noncallable Government Securities, the interest on and principal of which when paid will
provide cash which, together with the cash, if any, deposited with the Trustee at the same time,
shall be sufficient, in the opinion of an Independent Certified Public Accountant, to pay when
due the interest to become due on such Bonds on and prior to the maturity date or redemption
date thereof, as the case may be, and the principal of and redemption premiums, if any, on such
Bonds, and (3) in the event such Bonds are not by their terms subject to redemption within the
next succeeding sixty (60) days, the Authority shall have given the Trustee in form satisfactory
to it irrevocable instructions to mail as soon as practicable, a notice to the Bondholders of such
Bonds that the deposit required by clause (2) above has been made with the Trustee and that such
Bonds are deemed to have been paid in accordance with this Section and stating the maturity
date or redemption date upon which money is to be available for the payment of the principal of
and redemption premiums, if any, on such Bonds.
(c) In the event of an advance refunding (i) the Authority shall cause to be
delivered, on the deposit date and upon any reinvestment of the defeasance amount, a report of
an Independent Certified Public Accountant verifying the sufficiency of the escrow established
to pay the Bonds in full on the maturity date or redemption date (“Verification”) (which
Verification shall verify the mathematical accuracy of the computations relating to the adequacy
of cash plus Government Securities to be held in escrow to pay debt service requirements
(principal, interest and redemption price, including premium, to the applicable redemption or
maturity dates) when due on the Bonds to be refunded), (ii) the escrow agreement shall provide
that no (A) substitution of a Government Security shall be permitted except with another
Government Security and upon delivery of a new Verification and (B) reinvestment of a
Government Security shall be permitted except as contemplated by the original Verification or
upon delivery of a new Verification, and (iii) there shall be delivered an Opinion of Bond
Counsel to the effect that the Bonds are no longer “Outstanding” under the Trust Agreement;
each Verification and opinion shall be addressed to the Authority and the Trustee.
SECTION 10.02 Unclaimed Money. Anything contained herein to the contrary
notwithstanding, any money held by the Trustee in trust for the payment and discharge of any of
the Bonds or interest thereon which remains unclaimed for two (2) years after the date when such
Bonds or interest thereon have become due and payable, either at their stated maturity dates or
by call for redemption prior to maturity, if such money was held by the Trustee at such date, or
for two (2) years after the date of deposit of such money if deposited with the Tru stee after the
date when such Bonds have become due and payable, shall be repaid by the Trustee to the
Authority as its absolute property free from trust, and the Trustee shall thereupon be released and
47 OHSUSA:761763646
discharged with respect thereto and the Bondholders shall not look to the Trustee for the
payment of such Bonds.
ARTICLE XI
MISCELLANEOUS
SECTION 11.01 Liability of Authority Limited to Revenues. Notwithstanding
anything contained herein, the Authority shall not be required to advance any money derived
from any source other than the Revenues as provided herein for the payment of the interest on or
principal of or redemption premiums, if any, on the Bonds or for the performance of any
agreements or covenants herein contained. The Authority may, however, advance funds for any
such purpose so long as such funds are derived from a source legally available for such purpose.
The Bonds are limited obligations of the Authority and are payable, as to interest
thereon, principal thereof and any premiums upon the redemption of any thereof, solely from the
Revenues as provided herein, and the Authority is not obligated to pay them except from the
Revenues. All the Bonds are equally secured by a pledge of and charge and lien upon the
Revenues, and the Revenues constitute a trust fund for the security and payment of the interest
on and principal of and redemption premiums, if any, on the Bonds as provided herein. The
Bonds are not a debt of the County, the State or any of its political subdivisions, and neither the
County, the State nor any of its political subdivisions is liable thereon, nor in any event shall the
Bonds be payable out of any funds or properties other than those of the Authority as provided
herein. The Bonds do not constitute an indebtedness within the meaning of any constitutional or
statutory limitation or restriction.
SECTION 11.02 Benefits of this Trust Agreement Limited to Parties and Third
Party Beneficiaries. Nothing contained herein, expressed or implied, is intended to give to any
person other than the Authority, the Trustee, and the Bondholders any right, remedy or claim
under or by reason hereof. Any agreement or covenant required herein to be performed by or on
behalf of the Authority or any member, officer or employee thereof shall be for the sole and
exclusive benefit of the Authority, the Trustee and the Bondholders.
SECTION 11.03 Successor Is Deemed Included in All References to Predecessor.
Whenever herein either the Authority or any member, officer or employee thereof or of the State
is named or referred to, such reference shall be deemed to include the successor to the powers,
duties and functions with respect to the Project that are presently vested in the Authority or such
member, officer or employee, and all agreements and covenants required hereby to be performed
by or on behalf of the Authority or any member, officer or employee thereof shall bind and inure
to the benefit of the respective successors thereof whether so expressed or not.
SECTION 11.04 Execution of Documents by Bondholders. Any declaration,
request or other instrument which is permitted or required herein to be executed by Bondholders
may be in one or more instruments of similar tenor and may be executed by Bondholders in
person or by their attorneys appointed in writing. The fact and date of the execution by any
Bondholder or his attorney of any declaration, request or other instrument or of any writing
appointing such attorney may be proved by the certificate of any notary public or other officer
48 OHSUSA:761763646
authorized to make acknowledgments of deeds to be recorded in the state or territory in which he
purports to act that the person signing such declaration, request or other instrument or writing
acknowledged to him the execution thereof, or by an affidavit of a witness of such execution
duly sworn to before such notary public or other officer. The ownership of any Bonds and the
amount, maturity, number and date of holding the same may be proved by the registration books
relating to the Bonds at the Principal Office of the Trustee.
Any declaration, request, consent or other instrument or writing of the
Bondholder of any Bond shall bind all future Bondholders of such Bond with respect to anything
done or suffered to be done by the Trustee or the Authority in good faith and in accordance
therewith.
SECTION 11.05 Waiver of Personal Liability. No member, officer or employee of
the Authority or the County shall be individually or personally liable for the payment of the
interest on or principal of or redemption premiums, if any, on the Bonds by reason of their
issuance, but nothing herein contained shall relieve any such member, officer or employee from
the performance of any official duty provided by the Act or any other applicable provisions of
law or hereby.
SECTION 11.06 Destruction of Cancelled Bonds. Whenever provision is made for
the return to the Authority of any Bonds which have been cancelled pursuant to the provisions
hereof, the Authority may, by a Written Request of the Authority, direct the Trustee to destroy
such Bonds and furnish to the Authority a certificate of such destruction.
SECTION 11.07 Accounts and Funds. Any account or fund required herein to be
established and maintained by the Trustee may be established and maintained in the accounting
records of the Trustee either as an account or a fund, and may, for the purposes of such
accounting records, any audits thereof and any reports or statements with respect thereto, be
treated either as an account or a fund; but all such records with respect to all such accounts and
funds shall at all times be maintained in accordance with corporate trust industry standards and
with due regard for the protection of the security of the Bonds and the rights of the Bondholders.
SECTION 11.08 Business Day. When any action is provided for herein to be done
on a day named or within a specified time period, and the day or the last day of the period falls
on a day which is not a Business Day, such action may be performed on the next ensuing
Business Day with the same effect as though performed on the appointed day or within the
specified period.
SECTION 11.09 Notices; Notices to Rating Agencies. All written notices to be
given hereunder shall be given by mail to the party entitled thereto at the addresses se t forth
below, or at such other addresses as such parties may provide to the other party in writing from
time to time, namely:
If to the Authority: County of Contra Costa Public Financing Authority
c/o County Administrator
County of Contra Costa
County Administration Building
49 OHSUSA:761763646
651 Pine Street
Martinez, California 94553
If to the Trustee: Wells Fargo Bank, National Association
333 Market Street, 18th Floor
San Francisco, California 94105
Attention: Corporate Trust Services
If to the County: County of Contra Costa
c/o Clerk of the Board of Supervisors
County of Contra Costa
County Administration Building
651 Pine Street
Martinez, California 94553
The Trustee shall give written notice to Moody’s and S&P of the redemption or
defeasance of any Bonds, the amendment of the Facilities Lease or Trust Agreement, and any
change in the Trustee in accordance herewith.
SECTION 11.10 Article and Section Headings and References. The headings or
titles of the several articles and sections hereof and the table of contents appended hereto shall be
solely for convenience of reference and shall not affect the meaning, construction or effect
hereof. All references herein to “Articles,” “Sections” and other subdivisions or clauses are to
the corresponding articles, sections, subdivisions or clauses hereof; and the words “hereby,”
“herein,” “hereof,” “hereto,” “herewith,” “hereunder” and other words of similar import refer to
this Trust Agreement as a whole and not to any particular article, section, subdivision or clause
hereof.
SECTION 11.11 Partial Invalidity. If any one or more of the agreements or
covenants or portions thereof required hereby to be performed by or on the part of the Authority
or the Trustee shall be contrary to law, then such agreement or agreements, such covenant or
covenants or such portions thereof shall be null and void and shall be deemed separable from the
remaining agreements and covenants or portions thereof and shall in no way affect the validity
hereof or of the Bonds, and the Bondholders shall retain all the benefit, protection and security
afforded to them under the Act or any other applicable provisions of law. The Authority and the
Trustee hereby declare that they would have executed and delivered this Trust Agreement and
each and every other article, section, paragraph, subdivision, sentence, clause and phrase hereof
and would have authorized the issuance of the Bonds pursuant hereto irrespective of the fact that
any one or more articles, sections, paragraphs, subdivisions, sentences, clauses or phrases hereof
or the application thereof to any person or circumstance may be held to be unconstitutional,
unenforceable or invalid.
SECTION 11.12 Governing Law. This Trust Agreement shall be governed
exclusively by the provisions hereof and by the laws of the State as the same from time to time
exist.
50 OHSUSA:761763646
SECTION 11.13 Execution in Several Counterparts. This Trust Agreement may be
executed in any number of counterparts and each of such counterparts shall for all purposes be
deemed to be an original; and all such counterparts, or as many of them as the Authority and the
Trustee shall preserve undestroyed, shall together constitute but one and the same instrument.
51 OHSUSA:761763646
IN WITNESS WHEREOF, the COUNTY OF CONTRA COSTA PUBLIC
FINANCING AUTHORITY has caused this Trust Agreement to be signed in its name by its
Executive Director and Secretary, and WELLS FARGO BANK, NATIONAL ASSOCIATION.,
in token of its acceptance of the trusts created hereunder, has caused this Trust Agreement to be
signed by one of the officers thereunder duly authorized, all as of the day and year first above
written.
COUNTY OF CONTRA COSTA PUBLIC
FINANCING AUTHORITY
By:
Executive Director and Secretary
Attest:
By:
Deputy Executive Director
and Assistant Secretary
WELLS FARGO BANK, NATIONAL
ASSOCIATION, as Trustee
By:
Authorized Officer
Acknowledged:
COUNTY OF CONTRA COSTA
By:
Finance Director
A-1 OHSUSA:761763646
EXHIBIT A
[FORM OF 2015 SERIES [A/B] BOND]
No. _____ $__________
COUNTY OF CONTRA COSTA PUBLIC FINANCING AUTHORITY
LEASE REVENUE BONDS
(REFUNDING AND CAPITAL PROJECTS),
2015 SERIES [A/B]
NEITHER THE FULL FAITH AND CREDIT OF THE
AUTHORITY NOR THE COUNTY OF CONTRA COSTA IS
PLEDGED FOR THE PAYMENT OF THE INTEREST ON OR
PRINCIPAL OF THE BONDS AND NO TAX OR OTHER
SOURCE OF FUNDS OTHER THAN THE REVENUES
HEREINAFTER REFERRED TO IS PLEDGED TO PAY THE
INTEREST ON OR PRINCIPAL OF THE BONDS. NEITHER
THE PAYMENT OF THE PRINCIPAL OF NOR INTEREST ON
THE BONDS CONSTITUTES A DEBT, LIABILITY OR
OBLIGATION OF THE COUNTY OF CONTRA COSTA OR
[THE CONTRA COSTA COUNTY REDEVELOPMENT
AGENCY,] THE PARTIES TO THE AGREEMENT CREATING
THE AUTHORITY.
Interest
Rate
Maturity
Date
Dated
Date CUSIP
____ % June 1, ____ _______, 2015
REGISTERED OWNER:
PRINCIPAL SUM: _______________________________________ DOLLARS
The COUNTY OF CONTRA COSTA PUBLIC FINANCING AUTHORITY, a
joint exercise of powers authority, duly organized and validly existing under and pursuant to the
laws of the State of California (the “Authority”), for value received, hereby promises to pay (but
only out of the Revenues hereinafter referred to) to the registered owner identified above or
registered assigns, on the maturity date specified above (subject to any right of prior redemption
hereinafter provided for) the principal sum specified above, together with interest on such
principal sum from the interest payment date next preceding the date of authentication of this
A-2 OHSUSA:761763646
Bond (unless this Bond is registered as of an interest payment date or during the peri od from the
fifteenth calendar day of the month preceding an interest payment date to such interest payment
date, in which event it shall bear interest from such interest payment date, or unless this Bond is
authenticated on or before November 15, 2015, in which event it shall bear interest from the
Dated Date specified above) until the principal hereof shall have been paid at the interest rate per
annum specified above, payable on December 1, 2015, and semiannually thereafter on each
June 1 and December 1. Interest due on or before the maturity or prior redemption of this Bond
shall be payable only by check mailed by first-class mail to the registered owner hereof;
provided that upon the written request of a Bondholder of $1,000,000 or more in aggregate
principal amount of Bonds of the Series of which this Bond is a part received by the Trustee
(defined hereinafter) prior to the applicable record date, interest shall be paid by wire transfer in
immediately available funds. The principal hereof is payable in lawful money of the United
States of America upon presentation of this Bond at the Principal Office of the Trustee.
Capitalized terms used herein and not otherwise defined herein have the meanings ascribed
thereto in the Trust Agreement.
This Bond is one of a duly authorized issue of bonds of the Authority designated
as its “County of Contra Costa Public Financing Authority Lease Revenue Bonds” (the “Bonds”)
unlimited as to principal amount and is one of a duly authorized series of such Bonds known as
“(Refunding and Capital Projects), 2015 Series [A/B]” (the “2015 Series [A/B] Bonds”) issued in
an aggregate principal amount of __________________________________________ dollars
($[par amount]), all of like tenor and date (except for such variations, if any, as may be required
to designate varying numbers, maturities and interest rates), and is issued under and pursuant to
the provisions of the Joint Exercise of Powers Act (being Chapter 5 of Division 7 of Title 1 of
the California Government Code, as amended) and all laws amendatory thereof or supplemental
thereto (the “Act”) and under and pursuant to the provisions of a trust agreement, dated as of
July 1, 2015 (as amended from time to time, the “Trust Agreement”), between the Authority and
Wells Fargo Bank, National Association, as trustee (together with any successor as trustee under
the Trust Agreement, the “Trustee”) (copies of the Trust Agreement are on file at the principal
office of the Trustee in San Francisco, California).
The 2015 Series [A/B] Bonds are issued to provide funds to finance and refinance
the acquisition, installation, implementation and construction of certain capital projects of the
County, and related costs and expenses, located in the County of Contra Costa (as more fully
defined in the Trust Agreement, the “Project”). The Bonds are limited obligations of the
Authority and are payable, as to interest thereon and principal thereof, solely from certain
proceeds of the Bonds held in certain funds and accounts pursuant to the Trust Agreement and
the revenues (as more fully defined in the Trust Agreement, the “Revenues”) derived from Base
Rental Payments and other payments made by the County of Contra Costa (the “County”), and
all interest or other investment income thereon, pursuant to the Facilities Lease, dated as of
July 1, 2015 (as amended from time to time, the “Facilities Lease”), by and between the
Authority and the County, and the Authority is not obligated to pay the interest or premium, if
any, on and principal of the Bonds except from the Revenues. All Bonds are equally and ratably
secured in accordance with the terms and conditions of the Trust Agreement by a pledge and
assignment of and charge and lien upon the Revenues, and the Revenues constitute a trust fund
for the security and payment of the interest or premium, if any, on and principal of the Bonds as
provided in the Trust Agreement. The full faith and credit of the Authority and the County are
A-3 OHSUSA:761763646
not pledged for the payment of the interest or premium, if any, on or principal of the Bonds. No
tax shall ever be levied to pay the interest on or principal of the Bonds. The Bonds are not
secured by a legal or equitable pledge of or charge or lien upon any property of the Authority or
any of its income or receipts except the Revenues, and neither the payment of the interest on nor
principal (or premium, if any) of the Bonds is a debt, liability or general obligation of the
Authority, the County or any member of the Authority for which such entity is obligated to levy
or pledge any form of taxation. Additional bonds payable from the Revenues may be issued
which will rank equally as to security with the 2015 Series [A/B] Bonds, but only subject to the
conditions and upon compliance with the procedures set forth in the Trust Agreement.
Reference is hereby made to the Act and to the Trust Agreement and any and all amendments
thereof and supplements thereto for a description of the terms on which the Bonds are issued, the
provisions with regard to the nature and extent of the Revenues, the rights of the registered
owners of the Bonds, security for payment of the Bonds, remedies upon default and limitations
thereon, and amendment of the Trust Agreement (with or without consent of the registered
owners of the Bonds); and all the terms of the Trust Agreement are hereby incorporated herein
and constitute a contract between the Authority and the registered owner of this Bond, to all the
provisions of which the registered owner of this Bond, by acceptance hereof, agrees and
consents.
The Bonds are subject to redemption prior to maturity on the dates, at the
redemption prices, and upon such notice as set forth in the Trust Agreement.
If an Event of Default (as defined in the Trust Agreement) shall occur, the
principal of all Bonds may be declared due and payable upon the conditions, in the manner and
with the effect provided in the Trust Agreement. The Trust Agreement provides that in certain
events such declaration and its consequences may be rescinded by the holders of not less than a
majority in aggregate principal amount of the Bonds then outstanding or by the Trustee.
This Bond is transferable only on a register to be kept for that purpose at the
above-mentioned Principal Office of the Trustee by the registered owner hereof in person or by
the duly authorized attorney of such owner upon payment of the charges provided in the Trust
Agreement and upon surrender of this Bond together with a written instrument of transfer
satisfactory to the Trustee duly executed by the registered owner or the duly authorized attorney
of such owner, and thereupon a new fully registered Bond or Bonds in the same aggregate
principal amount will be issued to the transferee in exchange therefor. The Authority and the
Trustee may deem and treat the registered owner hereof as the absolute owner hereof for the
purpose of receiving payment of the interest hereon and principal hereof and for all other
purposes, whether or not this Bond shall be overdue, and neither the Authority nor the Trustee
shall be affected by any notice or knowledge to the contrary; and payment of the interest on and
principal of this Bond shall be made only to such registered owner, which payments shall be
valid and effectual to satisfy and discharge liability on this Bond to the extent of the su m or sums
so paid.
This Bond shall not be entitled to any benefit, protection or security under the
Trust Agreement or become valid or obligatory for any purpose until the certificate of
authentication hereon endorsed shall have been executed and dated by the Trustee.
A-4 OHSUSA:761763646
It is hereby certified and recited that all acts, conditions and things required by
law to exist, to have happened and to have been performed precedent to and in the issuance of
this Bond do exist, have happened and have been performed in due time, form and manner as
required by the Act, and by the Constitution and laws of the State of California, that the amount
of this Bond, together with all other indebtedness of the Authority, does not exceed any limit
prescribed by the Constitution or laws of the State of California and is not in excess of the
amount of Bonds permitted to be issued under the Trust Agreement.
A-5 OHSUSA:761763646
IN WITNESS WHEREOF, the County of Contra Costa Public Financing
Authority has caused this Bond to be executed in its name and on its behalf by the manual or
facsimile signature of the Chair of the Authority and countersigned by the manual or facsimile
signature of the Secretary of said Authority, and has caused this Bond to be dated as of the Dated
Date specified above.
COUNTY OF CONTRA COSTA PUBLIC
FINANCING AUTHORITY
By
Chair
[SEAL]
Countersigned:
________________________________________
Secretary
A-6 OHSUSA:761763646
[FORM OF CERTIFICATE OF AUTHENTICATION
TO APPEAR ON 2015 SERIES [A/B] BONDS]
This is one of the Bonds described in the within-mentioned Trust Agreement
which has been registered and authenticated on _____________, 2015.
WELLS FARGO BANK, NATIONAL
ASSOCIATION, as Trustee
By
Authorized Signatory
[DTC LEGEND]
Unless this Bond is presented by an authorized representative of The Depository
Trust Company to the issuer or its agent for registration of transfer, exchange or payment, and
any Bond issued is registered in the name of Cede & Co. or such other name as requested by an
authorized representative of The Depository Trust Company and any payment is made to Cede &
Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
BY OR TO ANY PERSON IS WRONGFUL since the registered owner hereof, Cede & Co., has
an interest herein.
A-7 OHSUSA:761763646
[FORM OF ASSIGNMENT TO
APPEAR ON 2015 SERIES [A/B] BONDS]
For value received the undersigned hereby sells, assigns and transfers unto
__________________________________ (Taxpayer Identification Number:_______________)
the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints
____________________________________ attorney to transfer the within bond on the books
kept for registration thereof, with full power of substitution in the premises.
NOTE: The signature to this Assignment must
correspond with the name as written on the face of
the Bond in every particular, without alteration or
enlargement or any change whatever.
Dated:
PLEASE INSERT SOCIAL SECURITY NUMBER, TAXPAYER IDENTIFICATION
NUMBER OR OTHER IDENTIFYING NUMBER OF ASSIGNEE:
Signature Guaranteed:
NOTE: Signature must be guaranteed by
an eligible guarantor institution.
B-1 OHSUSA:761763646
EXHIBIT B
FORM OF REQUISITION – PROJECT FUND
Date: ____________, 20__
No. __
Wells Fargo Bank, National Association
333 Market Street, 18th Floor
San Francisco, CA 94105
Re: County of Contra Costa Public Financing Authority
Lease Revenue Bonds (Refunding and Capital Projects), 2015 Series A
(Written Request of the County - 2015 Series A Project Account)
Ladies and Gentlemen:
This letter is our authorization to you to disburse from the 2015 Series A Project
Account within the Project Fund provided for in Section 3.02 of the Trust Agreement dated as of
July 1, 2015 (the “Trust Agreement”) between the County of Contra Costa Public Financing
Authority (the “Authority”) and Wells Fargo Bank, National Association, as trustee, the amount
indicated on Schedule A attached hereto to the therein-named individuals, firms and corporations
for the payment of project costs relating to the completion of the Capital Projects (as said term is
defined in the Trust Agreement).
The obligations in the stated amount have been incurred by the County, and each
item thereof is a proper charge against the 2015 Series A Project Account within the Project
Fund. There has not been filed with or served upon the County notice of any lien, right to lien or
attachment upon, or claim affecting the right to receive payment of, any of the moneys payable
to any of the persons named herein below, which has not been released or will not be released
simultaneously with the payment of such obligation, other than materialmen’s or mechanics’
liens accruing by mere operation of law.
If checked here you are hereby authorized to close the 2015 Series A Project
Account within the Project Fund and transfer any remaining balance (after payment of any
amounts indicated in Schedule A) to the Revenue Fund.
Very truly yours,
COUNTY OF CONTRA COSTA
By
Authorized Officer
B-2 OHSUSA:761763646
SCHEDULE A
Item
No. Payee Amount Purpose
__ ____________ $_________ _____________
C-1 OHSUSA:761763646
EXHIBIT C
FORM OF REQUISITION – COSTS OF ISSUANCE
Date: _______________
No. __
Wells Fargo Bank, National Association
333 Market Street, 18th Floor
San Francisco, CA 94105
Attention: Corporate Trust Services
Re: County of Contra Costa Public Financing Authority
Lease Revenue Bonds (Refunding and Capital Projects),
2015 Series A and 2015 Series B
(Written Request of the Authority – Costs of Issuance Fund)
Ladies and Gentlemen:
This letter is our authorization to you to disburse from the Costs of Issuance Fund
provided for in Section 3.01 of the Trust Agreement dated as of July 1, 2015 (the “Trust
Agreement”) between the County of Contra Costa Public Financing Authority (the “Authority”)
and Wells Fargo Bank, National Association, as trustee, the not to exceed amounts indicated on
Schedule A attached hereto to the therein-named individuals, firms and corporations for
expenses incident to the issuance of the above-referenced Bonds pursuant to the Trust
Agreement.
The obligations in the stated amounts have been incurred by the Authority and
each item thereof is a proper charge against the Costs of Issuance Fund.
If checked here you are hereby authorized to close the Costs of Issuance Fund
and transfer any remaining balance (after payment of any amounts indicated in Schedule A) to
the Authority for deposit to the 2015 Series A Project Account within the Project Fund.
Very truly yours,
COUNTY OF CONTRA COSTA PUBLIC
FINANCING AUTHORITY
By
Authorized Officer
C-2 OHSUSA:761763646
SCHEDULE A
Item
No. Payee Amount Purpose
TABLE OF CONTENTS
Page
-i- OHSUSA:761763646
ARTICLE I DEFINITIONS; EQUAL SECURITY ............................................................ 3
SECTION 1.01 Definitions...................................................................................... 3
SECTION 1.02 Equal Security .............................................................................. 13
SECTION 1.03 Interpretation ................................................................................ 13
ARTICLE II THE BONDS ................................................................................................. 14
SECTION 2.01 Authorization of Bonds; 2015 Bonds .......................................... 14
SECTION 2.02 Terms of the 2015 Bonds ............................................................. 15
SECTION 2.03 Form of 2015 Bonds .................................................................... 17
SECTION 2.04 Execution of Bonds ...................................................................... 17
SECTION 2.05 Transfer and Payment of Bonds ................................................... 17
SECTION 2.06 Exchange of Bonds ...................................................................... 18
SECTION 2.07 Bond Registration Books ............................................................. 18
SECTION 2.08 Mutilated, Destroyed, Stolen or Lost Bonds; Temporary
Bonds ........................................................................................... 18
SECTION 2.09 Special Covenants as to Book-Entry Only System for 2015
Bonds ........................................................................................... 19
ARTICLE III ISSUANCE OF 2015 BONDS ...................................................................... 21
SECTION 3.01 Procedure for the Issuance of 2015 Bonds .................................. 21
SECTION 3.02 Project Fund ................................................................................. 21
SECTION 3.03 Conditions for the Issuance of Additional Bonds ........................ 22
SECTION 3.04 Proceedings for Authorization of Additional Bonds ................... 23
SECTION 3.05 Limitations on the Issuance of Obligations Payable From
Revenues ...................................................................................... 25
ARTICLE IV REDEMPTION OF BONDS ......................................................................... 25
SECTION 4.01 Extraordinary Redemption ........................................................... 25
SECTION 4.02 Optional Redemption ................................................................... 25
SECTION 4.03 Mandatory Sinking Fund Redemption ......................................... 26
SECTION 4.04 Selection of Bonds for Redemption ............................................. 26
SECTION 4.05 Notice of Redemption; Cancellation; Effect of Redemption ....... 26
ARTICLE V REVENUES ................................................................................................... 27
SECTION 5.01 Pledge of Revenues ...................................................................... 27
SECTION 5.02 Receipt and Deposit of Revenues in the Revenue Fund .............. 27
TABLE OF CONTENTS
Page
-ii- OHSUSA:761763646
SECTION 5.03 Establishment and Maintenance of Accounts for Use of
Money in the Revenue Fund; Reserve Fund ................................ 28
SECTION 5.04 Application of Insurance Proceeds .............................................. 31
SECTION 5.05 Deposit and Investments of Money in Accounts and Funds ....... 31
ARTICLE VI COVENANTS OF THE AUTHORITY ........................................................ 32
SECTION 6.01 Punctual Payment and Performance ............................................ 32
SECTION 6.02 Against Encumbrances................................................................. 32
SECTION 6.03 Rebate Fund ................................................................................. 33
SECTION 6.04 Tax Covenants ............................................................................. 33
SECTION 6.05 Accounting Records and Reports................................................. 34
SECTION 6.06 Prosecution and Defense of Suits ................................................ 34
SECTION 6.07 Further Assurances....................................................................... 34
SECTION 6.08 Maintenance of Revenues ............................................................ 34
SECTION 6.09 Amendments to Facilities Lease and Site Lease .......................... 35
SECTION 6.10 Leasehold Estate .......................................................................... 36
SECTION 6.11 Compliance With Continuing Disclosure Agreement ................. 36
ARTICLE VII EVENTS OF DEFAULT AND REMEDIES OF BONDHOLDERS ........... 37
SECTION 7.01 Events of Default and Acceleration of Maturities ....................... 37
SECTION 7.02 Application of Funds Upon Acceleration .................................... 38
SECTION 7.03 Institution of Legal Proceedings by Trustee ................................ 38
SECTION 7.04 Non-Waiver.................................................................................. 39
SECTION 7.05 Remedies Not Exclusive .............................................................. 39
SECTION 7.06 Limitation on Bondholders’ Right to Sue .................................... 39
ARTICLE VIII THE TRUSTEE ............................................................................................. 40
SECTION 8.01 The Trustee .................................................................................. 40
SECTION 8.02 Liability of Trustee ...................................................................... 41
SECTION 8.03 Compensation and Indemnification of Trustee ............................ 43
ARTICLE IX AMENDMENT OF THE TRUST AGREEMENT ....................................... 43
SECTION 9.01 Amendment of the Trust Agreement ........................................... 43
SECTION 9.02 Disqualified Bonds....................................................................... 44
SECTION 9.03 Endorsement or Replacement of Bonds After Amendment ........ 44
SECTION 9.04 Notice to and Consent of Bondholders ........................................ 45
TABLE OF CONTENTS
Page
-iii- OHSUSA:761763646
SECTION 9.05 Amendment by Mutual Consent .................................................. 45
ARTICLE X DEFEASANCE.............................................................................................. 45
SECTION 10.01 Discharge of Bonds ...................................................................... 45
SECTION 10.02 Unclaimed Money ........................................................................ 46
ARTICLE XI MISCELLANEOUS ...................................................................................... 47
SECTION 11.01 Liability of Authority Limited to Revenues ................................. 47
SECTION 11.02 Benefits of this Trust Agreement Limited to Parties and
Third Party Beneficiaries ............................................................. 47
SECTION 11.03 Successor Is Deemed Included in All References to
Predecessor .................................................................................. 47
SECTION 11.04 Execution of Documents by Bondholders ................................... 47
SECTION 11.05 Waiver of Personal Liability ........................................................ 48
SECTION 11.06 Destruction of Cancelled Bonds .................................................. 48
SECTION 11.07 Accounts and Funds ..................................................................... 48
SECTION 11.08 Business Day ................................................................................ 48
SECTION 11.09 Notices; Notices to Rating Agencies ........................................... 48
SECTION 11.10 Article and Section Headings and References ............................. 49
SECTION 11.11 Partial Invalidity........................................................................... 49
SECTION 11.12 Governing Law ............................................................................ 49
SECTION 11.13 Execution in Several Counterparts............................................... 50
Exhibit A Form of 2015 Series [A/B] Bond ....................................................................... A-1
Exhibit B Form of Requisition – Project Fund................................................................... B-1
Exhibit C Form of Requisition – Costs of Issuance .......................................................... C-1
TABLE OF CONTENTS
Page
-iv- OHSUSA:761763646
OH&S Draft
7/13/2015
OHSUSA:761762700.4
Recording requested by
and return to:
COUNTY OF CONTRA COSTA
c/o Orrick, Herrington & Sutcliffe LLP
The Orrick Building
405 Howard Street
San Francisco, California 94105-2669
Attention: Mary A. Collins, Esq.
SITE LEASE
by and between the
COUNTY OF CONTRA COSTA
and the
COUNTY OF CONTRA COSTA PUBLIC FINANCING AUTHORITY
Related to
$____________
County of Contra Costa Public Financing Authority
Lease Revenue Bonds (Refunding and Capital Projects),
2015 Series A and 2015 Series B
Dated as of July 1, 2015
THIS TRANSACTION IS EXEMPT FROM FILING FEES PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 6103 AND
TRANSFER TAXES PURSUANT TO CALIFORNIA REVENUE AND TAXATION CODE SECTION 11928
OHSUSA:761762700.4
SITE LEASE
This Site Lease, dated as of July 1, 2015 (this “Site Lease”), by and between the
COUNTY OF CONTRA COSTA, a political subdivision organized and existing under and by
virtue of the laws of the State of California (the “County”), as lessor, and the COUNTY OF
CONTRA COSTA PUBLIC FINANCING AUTHORITY, a public entity and agency, duly
organized and existing pursuant to an Agreement entitled “Joint Exercise of Powers Agreement”
by and between the County of Contra Costa and the Contra Costa County Redevelopment
Agency (the “Authority”), as lessee;
W I T N E S S E T H:
WHEREAS, the County has determined that it is in its best interests to finance
certain capital improvements for the County;
WHEREAS, the Authority has agreed to issue $[A par amount] principal amount
of its Lease Revenue Bonds (Refunding and Capital Projects), 2015 Series A (the “2015 Series A
Bonds”) and $[B par amount] principal amount of its Lease Revenue Bonds (Refunding and
Capital Projects), 2015 Series B (the “2015 Series B Bonds” and together with the 2015 Series A
Bonds, the “2015 Bonds”), pursuant to a Trust Agreement, dated as of July 1, 2015 (as amended
from time to time, the “Trust Agreement”) by and between the Authority and Wells Fargo Bank,
National Association, as trustee (together with any successor thereto, the “Trustee”), for the
purpose of financing and refinancing certain capital improvements for the County (the “Capital
Projects”) and refunding the Refunded Bonds which were issued to finance certain capital
improvements for the County;
WHEREAS, the County, pursuant hereto, will lease certain Facilities (as
hereinafter defined) of the County to the Authority and the Authority will use the proceeds of the
2015 Bonds [and certain other funds] to pay to the County the rental due hereunder for the
Facilities, and the County will use the proceeds of the 2015 Bonds to refund and defease the
Refunded Bonds and to make deposits to the Project Fund and the Costs of Issuance Fund, as
established in the Trust Agreement;
WHEREAS, the Authority will lease back the Facilities to the County pursuant to
the Facilities Lease, dated as of July 1, 2015 (the “Facilities Lease”), between the Authority, as
lessor, and the County, as lessee; and
WHEREAS, under the Facilities Lease, the County will be obligated to make base
rental payments to the Authority for the lease of the Facilities and the Authority will pledge such
base rental payments to the Trustee for payments of the Bonds (capitalized terms used herein and
not otherwise defined herein have the meanings assigned thereto in the Facilities Lease or the
Trust Agreement, as applicable);
2 OHSUSA:761762700.4
NOW, THEREFORE, IT IS HEREBY MUTUALLY AGREED as follows:
SECTION 1. Lease of Facilities
The County hereby leases to the Authority and the Authority hereby hires from
the County, on the terms and conditions hereinafter set forth, the real property situated in the
County of Contra Costa, State of California, together with the improvements thereon, as
described in Exhibit A attached hereto and made a part hereof, and any additional real property
added thereto by any supplement or amendment hereto, or any real property substituted for all or
any portion of such property in accordance with this Site Lease and the Trust Agreement (the
“Facilities”); subject, however, to any conditions, reservations, and easements of record or
known to the County. No merger shall be effected by the County’s lease of the Facilities to the
Authority under this Site Lease, and the Authority’s sublease of the Facilities back to the County
under the Facilities Lease.
SECTION 2. Term
The term of this Site Lease as to the Facilities shall commence on the date of
recordation of this Site Lease in the office of the County Recorder of the County of Contra
Costa, State of California, or on ____________, 2015 whichever is earlier, and shall end on the
respective dates identified in Exhibit B hereto, as applicable to the related Facility, unless such
term is extended or sooner terminated as hereinafter provided. If on such dates the Base Rental
Payments attributable to the related Facility and all other amounts then due under the Facilities
Lease with respect to such Facility shall not be fully paid, or if the rental or other amounts
payable under the Facilities Lease with respect to such Facility shall have been abated at any
time and for any reason, then the term of this Site Lease with respect to such Facility shall be
extended until ten (10) days after the Base Rental Payments attributable to such Facility and all
other amounts then due under the Facilities Lease with respect to such Facility, shall be fully
paid, except that the term of this Site Lease as to the respective Facility shall in no event be
extended beyond ten (10) years after the date identified with respect thereto. If prior to such date
the Base Rental Payments attributable to the related Facility and all other amounts then due
under the Facilities Lease with respect to such Facility shall be fully paid, the term of this Site
Lease with respect to such Facility shall end ten (10) days thereafter or upon written notice by
the County to the Authority, whichever is earlier.
SECTION 3. Rental
The Authority shall pay to the County from the proceeds of the 2015 Bonds as
and for rental hereunder an amount, not less than $____________, which amount the County
finds and determines is full and fair rental for the Facilities on the date hereof and which amount
the County further agrees will be deposited in the Project Fund as set forth in the Trust
Agreement and applied along with other proceeds of the 2015 Bonds to finance or refinance the
Capital Projects.
SECTION 4. Purpose
The Authority shall use the Facilities solely for the purpose of leasing the
Facilities to the County pursuant to the Facilities Lease and for such purposes as may be
3 OHSUSA:761762700.4
incidental thereto; provided, that in the event of default by the County under the Facilities Lease,
the Authority may exercise the remedies provided in the Facilities Lease.
SECTION 5. Environmental Law and Regulations
(a) Definitions used in this Section 5 and in Section 6.
“Asbestos Containing Materials” shall mean material in friable form containing
more than one percent (1%) of the asbestiform varieties of (a) chrysotile (serpentine);
(b) crocidolite (ricbeckite); (c) amosite (cummington-itegrinerite); (d) anthophyllite;
(e) tremolite; and (f) antinolite.
“Asbestos Operations and Maintenance Plan” shall mean that written plan for the
Facilities relating to monitoring and maintaining all Asbestos Containing Materials used or
located on the Facilities.
“Environmental Regulations” shall mean all Laws and Regulations, now or
hereafter in effect, with respect to Hazardous Materials, including, without limitation, the
Comprehensive Environmental Response, Compensation, and Liability Act, as amended (42
U.S.C. Section 9601, et seq.) (together with the regulations promulgated thereunder,
“CERCLA”), the Resource Conservation and Recovery Act, as amended (42 U.S.C.
Section 6901, et seq.) (together with the regulations promulgated thereunder, “RCRA”), the
Emergency Planning and Community Right-to-Know Act, as amended (42 U.S.C.
Section 11001, et seq.) (together with the regulations promulgated thereunder, “Title III”), the
Clean Water Act, as amended (33 U.S.C. Section 1251, et seq.) (together with the regulations
promulgated thereunder, “CWA”), the Clean Air Act, as amended (42 U.S.C. Section 7401, et
seq.) (together with the regulations promulgated thereunder, “CAA”), the Toxic Substances
Control Act, as amended (15 U.S.C. Section 2601, et seq.) (together with the regulations
promulgated thereunder, “TSCA”), the Occupational Safety and Health Act, as amended (29
U.S.C. Section 651 et seq.) (together with regulations promulgated thereunder, “OSHA”) and
any similar federal, state or local laws and regulations and any so -called local, state or federal
“superfund” or “superlien” law.
“Hazardous Materials” shall mean any material amount of flammable explosives,
polychlorinated biphenyl compounds, heavy metals, chlorinated solvents, cyanide, radon,
petroleum products, asbestos or any Asbestos Containing Materials, methane, radioactive
materials, pollutants, hazardous materials, hazardous wastes, hazardous, toxic, or regulated
substances or related materials, as characterized, regulated or defined in CERCLA, RCRA,
CWA, CAA, TSCA, OSHA and Title III, and the regulations promulgated pursuant thereto, and
in any other Environmental Regulations applicable to the County, any of the Facilities or the
business operations conducted by the County therein.
“Laws and Regulations” shall mean any applicable law, regulation, code, order,
rule, judgment or consent agreement, including, without limitation, those relating to zoning,
building, use and occupancy, fire safety, health, sanitation, air pollution, ecological matters,
environmental protection, hazardous or toxic materials, substances or wastes, conservation,
4 OHSUSA:761762700.4
parking, architectural barriers to the handicapped, or restrictive covenants or other agreements
affecting title to the Facilities.
(b) No portion of the Facilities is located in an area of high potential incidence
of radon which has an unventilated basement or subsurface portion which is occupied or used for
any purpose other than the foundation or support of the improvements to such Facilities.
(c) The County has not received any notice from any insurance company
which has issued a policy with respect to the Facilities or from the applicable state or local
government agency responsible for insurance standards (or any other body exercising similar
functions) requiring the performance of any repairs, alterations or other work, which repairs,
alterations or other work have not been completed at the Facilities. The County has not received
any notice of default or breach which has not been cured under any covenant, condition,
restriction, right-of-way, reciprocal easement agreement or other easement affecting the
Facilities which is to be performed or complied with by it.
SECTION 6. Environmental Compliance
(a) Neither the County nor the Authority shall use or permit the Facilities or
any part thereof to be used to generate, manufacture, refine, treat, store, handle, transport or
dispose of, transfer, produce or process Hazardous Materials, except, and only to the extent, if
necessary to maintain the Facilities and then, only in compliance with all Environmental
Regulations, nor shall it permit, as a result of any intentional or unintentional act or omission on
its part or by any tenant, subtenant, licensee, guest, invitee, contractor, employee and agent, the
storage, transportation, disposal or use of Hazardous Materials or the pumping, spilling, leaking,
disposing of, emptying, discharging or releasing (hereinafter collectively referred to as
“Release”) or threat of Release of Hazardous Materials on, from or beneath the Facilities or onto
any other real property excluding, however, those Hazardous Materials in those amounts
ordinarily found in the inventory of an office building, the use, storage, treatment, transportation
and disposal of which shall be in compliance with all Environmental Regulations. Upon the
occurrence of any Release or threat of Release, or presence, of Hazardous Materials, the Co unty
shall promptly commence and perform, or cause to be commenced and performed promptly,
without cost to the Trustee or the Authority, all investigations, studies, sampling and testing, and
all remedial, removal and other actions necessary to clean up and remove all Hazardous
Materials so Released or present, on, from or beneath the Facilities, in compliance with all
Environmental Regulations. Notwithstanding anything to the contrary contained herein,
underground storage tanks shall only be permitted subject to compliance with subsection (d) and
only to the extent necessary to maintain the Facilities.
(b) The County and the Authority shall comply with, and shall cause its
tenants, subtenants, licensees, guests, invitees, contractors, employees and agents to comply
with, all Environmental Regulations, and shall keep the Facilities free and clear of any liens
imposed pursuant thereto (provided, however, that any such liens, if not discharged, may be
bonded). The County and the Authority shall cause each tenant, and use its best efforts to cause
all of such tenant’s subtenants, agents, licensees, employees, contractors, guests and invitees and
the guests and invitees of all of the foregoing to comply with all Environmental Regulations with
respect to the Facilities; provided, however, that notwithstanding that a portion of this covenant
5 OHSUSA:761762700.4
is limited to the County and the Authority’s use of its best efforts, the Authority and the County
shall remain solely responsible for ensuring such compliance and such limitation shall not
diminish or affect in any way the County and the Authority’s obligations contained in
subsection (c) hereof as provided in subsection (c) hereof. Upon receipt of any notice from any
individual or Person with regard to the presence of, or Release of Hazardous Materials on, from
or beneath the Facilities, the County and the Authority shall give prompt written notice thereof to
the Trustee (and, in any event, prior to the expiration of any period in which to respond to such
notice under any Environmental Regulation).
(c) Irrespective of whether any representation or warranty contained in
Section 5 is not true or correct, the County and the Authority shall, to the extent permitted by
law, defend, indemnify and hold harmless the Bondholders and the Trustee, its partners,
depositors and each of its and their employees, agents, officers, directors, trustees, successors
and assigns, from and against any claims, demands, penalties, fines, attorneys’ fees (including,
without limitation, attorneys’ fees incurred to enforce the indemnification contained in this
Section 6), consultants’ fees, investigation and laboratory fees, liabilities, settlements (five (5)
Business Days’ prior notice of which the Authority or the Trustee, as appropriate, shall have
delivered to the County and the Authority), court costs, damages, losses, costs or expenses of
whatever kind or nature, known or unknown, contingent or otherwise, occurring in whole or in
part, arising out of, or in any way related to, (i) the presence, disposal, Release, threat of Release,
removal, discharge, storage or transportation of any Hazardous Materials on, from or beneath the
Facilities, (ii) any personal injury (including wrongful death) or property damage (real or
personal) arising out of or related to such Hazardous Materials, (iii) any lawsuit brought or
threatened, settlement reached (five (5) Business Days’ prior notice of which the Authority or the
Trustee, as appropriate, shall have delivered to the County and the Authority), or governmental
order relating to Hazardous Materials on, from or beneath any of the Facilities, (iv) any violation
of Environmental Regulations or subsection (a) or (b) hereof by it or any of its agents, tenants,
employees, contractors, licensees, guests, subtenants or invitees, and (v) the imposition of any
governmental lien for the recovery of environmental cleanup or removal costs. To the extent that
the Authority or the County is strictly liable under any Environmental Regulation, its obligation
to the Trustee and the Bondholders and the other indemnitees under the foregoing
indemnification shall likewise be without regard to fault on its part with respect to the violation
of any Environmental Regulation which results in liability to any indemnitee. Its obligations and
liabilities under this Section 6(c) shall survive any termination of the Facilities Lease or exercise
of any remedies thereunder, and the satisfaction of all Bonds.
(d) The County and the Authority shall conform to and carry out a reasonable
program of maintenance and inspection of all underground storage tanks, and shall maintain,
repair, and replace such tanks only in accordance with Laws and Regulations, including but not
limited to Environmental Regulations.
SECTION 7. Owner in Fee
The County covenants that it is the owner in fee of the Facilities. The County
further covenants and agrees that if for any reason this covenant proves to be incorrect, the
County will either institute eminent domain proceedings to condemn the property or i nstitute a
quiet title action to clarify the County’s title, and will diligently pursue such action to
6 OHSUSA:761762700.4
completion. The County further covenants and agrees that it will hold the Authority and the
Bondowners harmless from any loss, cost or damages resulting from any breach by the County
of the covenants contained in this Section.
SECTION 8. Assignments and Subleases
Unless the County shall be in default under the Facilities Lease, the Authority
may not assign its rights under this Site Lease or sublet the Facilities, except pursuant to the
Facilities Lease, without the written consent of the County, which consent may be withheld in
the County’s sole and absolute discretion. Upon the occurrence of a default by the Co unty under
the Facilities Lease, the Authority may assign or sell its rights under this Site Lease or sublet the
Facilities, without the consent of the County.
SECTION 9. Right of Entry; Easements
The County reserves the right for any of its duly authorized representatives to
enter upon the Facilities at any reasonable time to inspect the same or to make any repairs,
improvements or changes necessary for the preservation thereof.
The County agrees, upon written request from the Authority, to grant to the
Authority a nonexclusive easement of ingress and egress for persons, vehicles and utilities,
twenty (20) feet wide, from each parcel of the Facilities not having access to a public street, and
appurtenant to such parcel, over property owned by the County to a public street. The County
may, at any time, satisfy its obligation contained in the preceding sentence as to any such parcel
of the Facilities by granting to the Authority an easement complying with the requirements of the
preceding sentence from such parcel of the Facilities to a public street.
SECTION 10. Termination
The Authority agrees, upon the termination of this Site Lease, to quit and
surrender the Facilities in the same good order and condition as the same were in at the time of
commencement of the term hereunder, reasonable wear and tear excepted, and the Authority
further agrees that the Facilities and any other permanent improvements and structures existing
upon the Facilities at the time of the termination of this Site Lease shall remain thereon and title
thereto shall vest in the County.
Upon the exercise of the option to purchase set forth in Section 7.03 of the
Facilities Lease and upon payment of the option price required by said section, the term of this
Site Lease shall terminate as to the portion of the Facilities being so purchased, including the real
property upon which portion is situated.
SECTION 11. Default
In the event the Authority shall be in default in the performance of any obligation
on its part to be performed under the terms of this Site Lease, which default continues for one
hundred and eighty (180) days following notice and demand for correction thereof to the
Authority and the Trustee, the County may exercise any and all remedies granted by law, except
that no merger of this Site Lease and of the Facilities Lease shall be deemed to occur as a result
7 OHSUSA:761762700.4
thereof; provided, however, that the County shall have no power to terminate this Site Lease by
reason of any default on the part of the Authority if such termination would affect or impair any
assignment of the Facilities Lease of all or any part of the Facilities then in effect between the
Authority and any assignee or subtenant of the Authority (other than the County under the
Facilities Lease) or the rights of the Trustee with respect thereto. So long as any such assignee
or subtenant of the Authority (or the Trustee) shall duly perform the terms and conditions of this
Site Lease, such assignee or subtenant (or the Trustee) shall be deemed to be and shall become
the tenant of the County hereunder and shall be entitled to all of the rights and privileges granted
under any such assignment or subrogation; provided, further, that so long as any Bonds are
outstanding and unpaid in accordance with the terms thereof, the rentals or any part thereof
payable to the Authority or Trustee shall continue to be paid to the Trustee on behalf of the
Bondowners.
SECTION 12. Quiet Enjoyment
The Authority at all times during the term of this Site Lease, shall peaceably and
quietly have, hold and enjoy all of the Facilities then leased hereunder.
SECTION 13. Waiver of Personal Liability
All liabilities under this Site Lease on the part of the Authority shall be solely
liabilities of the Authority, as a public entity and agency, and the County hereby releases each
and every member, director, officer, agent or employee of t he Authority of and from any
personal or individual liability under this Site Lease. No member, director, officer, agent or
employee of the Authority shall at any time or under any circumstances be individually or
personally liable under this Site Lease to the County or to any other party whomsoever for
anything done or omitted to be done by the Authority hereunder.
The Authority and its members, directors, officers, agents, employees and
assignees shall not be liable to the County or to any other party whomsoever for any death, injury
or damage that may result to any person or property by or from any cause whatsoever in, on or
about the Facilities. The County, to the extent permitted by law, shall indemnify and hold the
Authority and its members, directors, officers, agents, employees and assignees, harmless from,
and defend each of them against, any and all claims, liens and judgments arising from the
operation of the Facilities or the Project, including, without limitation, death of or injury to any
person or damage to property whatsoever occurring in, on or about the Facilities or the Project
regardless of responsibility for negligence, but excepting the active negligence of the person or
entity seeking indemnity.
SECTION 14. Taxes
The County covenants and agrees to pay any and all assessments of any kind or
character and also all taxes, including possessory interest taxes, levied or assessed upon the
Facilities.
SECTION 15. Eminent Domain
8 OHSUSA:761762700.4
In the event the whole or any part of the Facilities is taken by eminent domain
proceedings, the interest of the Authority shall be recognized and is hereby determined to be the
amount of the then unpaid or outstanding Bonds and all other amounts due under the Trust
Agreement and the Facilities Lease attributable to such part of the Facilities and shall be paid to
the Trustee, and the balance of the award, if any, shall be paid to the County.
SECTION 16. Nondiscrimination
The Authority herein covenants by and for itself, its heirs, executors,
administrators, and assigns, and all person claiming under or through itself, and this Site Lease is
made and accepted upon and subject to the following conditions: That there shall be no
discrimination against or segregation of any person or groups of persons, on account of any basis
listed in subdivision (a) or (d) of Section 12955 of the California Government Code, as those
basis are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision
(p) of Section 12955, and Section 12955.2 of the California Government Code, in leasing,
subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein leased nor
shall the Authority, or any person claiming under or through the Authority, establish or permit
any such practice or practices of discrimination or segregation with reference to the selection,
location, number, use, or occupancy, of tenants, lessees, sublesses, subtenants, or vendees in the
premises herein leased.
SECTION 17. Partial Invalidity
If any one or more of the terms, provisions, covenants or conditions of this Site
Lease shall to any extent be declared invalid, unenforceable, void or voidable for any reason
whatsoever by a court of competent jurisdiction, the finding or order or decree of which becomes
final, none of the remaining terms, provisions, covenants and conditions of this Site Lease shall
be affected thereby, and each provision of this Site Lease shall be valid and enforceable to the
fullest extent permitted by law.
SECTION 18. Notices
All notices, statements, demands, consents, approvals, authorizations, offers,
designations, requests or other communications hereunder by either party to the other shall be in
writing and shall be sufficiently given and served upon the other party if delivered personally or
if mailed by United States registered or certified mail, return receipt requested, postage prepaid,
and, if to the County, addressed to the County in care of the Clerk of the Board of Supervisors,
County Administration Building, 651 Pine Street, Martinez, California 94553, or if to the
Authority, addressed to the County in care of the County Administrator, County Administration
Building, 651 Pine Street, Martinez, California 94553, in all cases with a copy to the Trustee at
the address specified in the Trust Agreement, or to such other addresses as the respective parties
may from time to time designate by notice in writing.
SECTION 19. Section Headings
All section headings contained herein are for convenience of reference only and
are not intended to define or limit the scope of any provision of this Site Lease.
9 OHSUSA:761762700.4
SECTION 20. Amendment
The Authority and the County may at any time agree to the amendment of this
Site Lease; provided, however, that the Authority and the County agree and recognize that this
Site Lease is entered into as contemplated by the terms of the Trust Agreement, and accordingly,
that any such amendment shall only be made or effected in accordance with and subject to the
terms of the Trust Agreement.
SECTION 21. Definitions
Capitalized terms not otherwise defined herein shall have the meanings assigned
to them in the Facilities Lease or, if not defined therein, the Trust Agreement.
SECTION 22. Execution
This Site Lease may be executed in any number of counterparts, each of which
shall be deemed to be an original, but all together shall constitute but one and the same Lease. It
is also agreed that separate counterparts of this Site Lease may separately b e executed by the
County and the Authority, all with the same force and effect as though the same counterpart had
been executed by both the County and the Authority.
10 OHSUSA:761762700.4
IN WITNESS WHEREOF, the County and the Authority have caused this Site
Lease to be executed by their respective officers thereunto duly authorized, all as of the day and
year first above written.
COUNTY OF CONTRA COSTA,
as Lessor
By
John M. Gioia
Chair of the Board of Supervisors
[SEAL]
Attest:
By ______________________________
David J. Twa
Clerk of the Board of Supervisors
and County Administrator
COUNTY OF CONTRA COSTA PUBLIC
FINANCING AUTHORITY,
Lessee
By
John M. Gioia
Chair
Attest:
By ______________________________
David J. Twa
Executive Director and Secretary
A-1 OHSUSA:761762700.4
EXHIBIT A
Description of Facilities
B-1 OHSUSA:761762700.4
EXHIBIT B
Lease Term
Facility Term Maximum Extension
OHSUSA:761762700.4
CERTIFICATE OF ACCEPTANCE
(Government Code Section 27281)
This is to certify that the interest in real property conveyed by the foregoing Site
Lease from the County of Contra Costa Public Financing Authority to the County of Contra
Costa, a political subdivision of the State of California (the “County”), is hereby accepted by
order of the undersigned officer on behalf of the Authority on ________________, 2015,
[pursuant to authority conferred by Resolution No.________ of the Authority adopted on
___________, 2015,] and the Authority consents to recordation thereof by its duly authorized
officer.
COUNTY OF CONTRA COSTA PUBLIC
FINANCING AUTHORITY,
as Lessee
By
John M. Gioia
Chair
Attest:
By
David Twa
Executive Director and Secretary
TABLE OF CONTENTS
Page
-i-
OHSUSA:761762700.4
SECTION 1. Lease of Facilities .................................................................................................. 2
SECTION 2. Term ....................................................................................................................... 2
SECTION 3. Rental ..................................................................................................................... 2
SECTION 4. Purpose ................................................................................................................... 2
SECTION 5. Environmental Law and Regulations ..................................................................... 3
SECTION 6. Environmental Compliance ................................................................................... 4
SECTION 7. Owner in Fee .......................................................................................................... 5
SECTION 8. Assignments and Subleases ................................................................................... 6
SECTION 9. Right of Entry; Easements ..................................................................................... 6
SECTION 10. Termination ............................................................................................................ 6
SECTION 11. Default.................................................................................................................... 6
SECTION 12. Quiet Enjoyment .................................................................................................... 7
SECTION 13. Waiver of Personal Liability .................................................................................. 7
SECTION 14. Taxes ...................................................................................................................... 7
SECTION 15. Eminent Domain .................................................................................................... 7
SECTION 16. Nondiscrimination.................................................................................................. 8
SECTION 17. Partial Invalidity..................................................................................................... 8
SECTION 18. Notices ................................................................................................................... 8
SECTION 19. Section Headings ................................................................................................... 8
SECTION 20. Amendment ............................................................................................................ 9
SECTION 21. Definitions.............................................................................................................. 9
SECTION 22. Execution ............................................................................................................... 9
EXHIBIT A Description of Facilities ....................................................................................... A-1
EXHIBIT B Lease Terms ......................................................................................................... B-1