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Home My WebLink About1978-07-11 Min - Board SPECIAL MEETING JULY 11 , 1978 The Special Meeting of the Board of Directors of the Truckee Donner Public Utility District was called to order by Vice President Kuttel at 2:05 P.M. in the District Office, the President being out of the area. ,,0•_ ROLL CALL: Directors Hatch, Huber, Kuttel , and Sutton were present. Director Maass was not present. (Director Sutton left the meeting at 2:29 P.M.) EMPLOYEES PRESENT: A. Milton Seymour and Susan Craig. CONSULTANTS PRESENT: Dan J . Cook, District Engineer. OTHERS PRESENT: William Grimmer, Farmers Home Administration representa- tive. FARMERS HOME ADMINISTRATION LOAN/GRANT LOAN CLOSING The following listed documents were duly completed, signed by the appropriate officer, and sealed when required: Attorney' s No Litigation Certificate, previously executed by District Counsel Grumer. Finance Officer' s No Change Certificate executed by District Treasurer Huber. Certificate as to Non-arbitrage executed by District Treasurer Huber. District Clerk's Certificate Concerning Referendum Petition signed by A. Milton Seymour. Mr. Seymour reviewed this doc- ument and determined, after an examination of Ordinance 7805 amending Ordinance 7705, that the wording of this certificate was in correct form. Mr. Grimmer, the FmHA representative, consulted by telephone with the Administration's attorney and ascertained that the equal amortized installments of principal and interest of $14,800 would begin on July 11 , 1979• Thereafter, the documents listed following were completed: Signature and No-litigation Certificate executed by Vice President Kuttel and Treasurer Huber. Truckee Donner Public Utility District Emergency Drought Relief Promissory Note of 1977 in the amount of $251 ,800 executed by Vice President Kuttel and District Clerk Seymour. First Advance - Receipt for Proceeds of Note executed by i, Vice President Kuttel . Receipt for Note executed by William L. Grimmer. Copies of each of the above documents were presented to Mr. Grimmer along with the original Promissory Note and five copies of the opinion let- ter submitted to the Board by Wilson, Morton, Assaf & McElligott. A check in the amount of $186,000 was presented to the Vice Pres- ident by Mr. Grimmer and duly endorsed by Treasurer Huber. Thereafter it was delivered into the hands of the District Manager for processing. Copies of all the forms and documents mentioned herein, as well as a copy of the check in the amount of $186,000, have been made attach- ments to these minutes for clarification and reference. 7/11/18 pg, I 32 Upon conclusion of the loan closing, Director Huber moved, and Director Hatch seconded, that the meeting be adjourned. ALL AYE BY VOICE VOTE. SO MOVED. The Vice President adjourned the meeting at approximately 3:00 P.M. TRUCKEE DONNER PUBLIC UTILITY DISTRICT By a —� J es A. Maass, President Approved August 8, 1978, as corrected Signed Susan Craig ` Executive Secretary i 7/11/78 pg. 2 PLM: im 5/25/78 TRUCKEE-DONNER PUBLIC UTILITY DISTRICT County of Nevada, State of California $251 , 800 EMERGENCY DROUGHT RELIEF PROMISSORY NOTE OF 1977 SIGNATURE AND NO-LITIGATION CERTIFICATE We , the undersigned officers of the Truckee-Donner Public Utility District , Nevada County , California , holding the respective offices hereinafter set opposite our signatures , do hereby certify that on the date below set forth the President and District Clerk of said District officially signed and executed the following Promissory Note pursuant to the Loan Agreement and Indenture between the United States of America, Farmers Home Administration and the Truckee-Donner Public Utility District. Principal Amount of Loan: $251 ,800 Date of Promissory Note : July 11 1978 Interest Rate : 5% per annum Repayment : Not to exceed thirty-nine (39) equal amortized installments of principal and interest of $14, 800 beginning / , 1979 ; the (SEAL) unpaid balance of pri ci al (and interest thereon to date of payment) may be paid in whole or in part by District at any time. We further certify that the Seal of the District affixed to said Loan Agreement and Indenture and said Promissory Note is impressed hereon and is the legally adopted , proper and only official Seal of the District . We further certify that said officers at the times of signing said Loan Agreement and Indenture and said Promissory Note held said offices respectively, and that they now hold the same. We further certify that no litigation of any nature is now pending relating to or affecting the validity of said Loan Agreement and Inden- ture or Note or the Project for which the loan is made and that neither the corporate existence nor the boundaries of the District nor the title of any of said officers to their respective offices is being contested. Dated; July 11 1978 Signature Official Title Karl Kuttel Vice President of the Board Roberta Huber Treasurer WILSON , MORTON, ASSAF & McELLIGOTT Attorneys and Counsellors at Law 630 North San Mateo Drive San Mateo , California 94401 PLM: im 5/25/78 TRUCKEE-DONNER PUBLIC UTILITY DISTRICT County of Nevada, State of California $251, 800 EMERGENCY DROUGHT RELIEF PROMISSORY NOTE OF 1977 ATTORNEY' S NO LITIGATION CERTIFICATE I , Steven E. Grumer , District Counsel of the Truckee-Donner Public Utility District (the "Attorney") , Nevada County, California, hereby certify that as of the date of this certificate there is no litigation of any nature pending relating to or affecting that certain Promissory Note designated "Emergency Drought Relief Promissory Note of 1977" , dated as of July 11 , , 1978 , between the United States of America, Farmers Home Administration, ("FmHA") and the District or relating to or affecting the Project , for which the loan provided for in the Loan Contract represented by the said Note is being made , which said project is described in the District' s Water & Waste Disposal Loan & Grant Program applica- tion to FmHA dated July 29 , 1977 . Dated: July 11 1978 Dis ict Counsel T u e-Donner Public Utility District WILSON, MORTON, ASSAF & McELLIGOTT Attorneys and Counsellors at Law 630 North San Mateo Drive San Mateo, California 94401 PLM: im 5/25/78 TRUCKEE-DONNER PUBLIC UTILITY DISTRICT County of Nevada , State of California $251 , 800 EMERGENCY DROUGHT RELIEF PROMISSORY NOTE OF 1977 FINANCE OFFICER' S NO CHANGE CERTIFICATE I , Roberta Huber , Treasurer of the Truckee-Donner Public Utility District (the "District") , Nevada County , California, hereby certify that as of the date of this certificate there has been no adverse change in the District ' s financial condition since September 23 , 1977 , the date of the Letter of Conditions issued by the UNITED STATES OF AMERICA, FARMERS HOME ADMINISTRATION, ("FmHA") , or since October 3 , i 1977 , the date of adoption of Resolution No. 77-32 which authorized the execution of the letter of intent to meet conditions . Dated: Ju1Y 11 1978 ell reasurer Truckee-Donner Public Utility District WILSON , MORTON, ASSAF & McELLIGOTT Attorneys and Counsellors at Law 630 North San Mateo Drive San Mateo , California 94401 PLM: im 5/25/78 TRUCKEE-DONNER PUBLIC UTILITY DISTRICT County of Nevada, State of California $251 , 800 EMERGENCY DROUGHT RELIEF PROMISSORY NOTE OF 1977 FIRST ADVANCE CERTIFICATE AS TO NON-ARBITRAGE The undersigned District Treasurer hereby certifies and reasonably expects that the following has occurred or will occur with respect to the $251, 800 principal amount of Emergency Drought Relief Promissory Note of 1977 of the Truckee-Donner Public Utility District , in the County of Nevada, State of California, which evidences the incurrence of a re- payment obligation ("District Obligation") , dated and $ of which is issued on the date hereof; (1) the District has incurred substantial binding obligations for engineering services and for con- struction of the project financed by the District Obligation, and the amount to be paid thereunder will exceed 2-1/2% of the estimated total cost of the project; (2) following receipt of proceeds of the District Obligation, work on the project will proceed with due diligence to completion on or about September 30 , 1978; (3) at least 85% of the spendable proceeds of the District Obligation will be expended for project costs by the end of the 3-year period beginning on the date hereof (the "temporary period") ; (4) no acquired obligations are to be allocated to the proceeds of the District Obligation the yield on which will exceed by more than 1/8 of 1% the yield produced by the District Obligation (except obligations held only during the temporary period and obligations which constitute less than a major portion of the proceeds of the District Obligation) ; (5) the project will not be sold or otherwise disposed of, in whole or in part, prior to the last maturity of the note ; (6) the original proceeds of this issue will not exceed by more than 5% the amount necessary for the purpose or purposes of the issue. On the basis of the foregoing facts , estimates and circumstances , it is not expected that the proceeds of the District Obligation will be used in a manner that would cause the District Obligation to be an arbi- trage bond under Section 103(c) of the Internal Revenue Code of 1954 and the regulations prescribed under that Section. To the best of my knowledge and belief, there are no other facts , estimates or circumstances which would materially change such conclusion. The District has not been advised of any contemplated listing of it in any notice which has been or is proposed to be published by the Commissioner of Internal Revenue Bulletin that the certification of the District respecting the non-arbitrage nature of issues of its obligations may not be relied upon with respect to issues of its obligations to be issued subsequent to the date of publication of such notice. Dated: .July 11 1978 District Treasurer Truckee-Donner Public Utility District WILSON, MORTON, ASSAF & McELLIGOTT Attorneys and Counsellors at Law 630 North San Mateo Drive San Mateo , California 94401 PLM: im 5/25/78 3 TRUCKEE-DONNER PUBLIC UTILITY DISTRICT County of Nevada , State of California $251 , 800 EMERGENCY DROUGHT RELIEF PROMISSORY NOTE OF 1977 DISTRICT CLERK' S CERTIFICATE CONCERNING REFERENDUM PETITION I , A. Milton Seymour, District Clerk of the Truckee-Donner Public Utility District (the "District") , hereby certify that no petition requesting an election on the proposal of the District to enter into a contract with the United States of America, Farmers Home Administra- tion ("FmHA") for an emergency drought relief loan was presented to the Board of Directors of the District or to the undersigned as District Clerk (a) within 30 days following the filing with FmHA for said loan, or (b) within 30 days following the adoption by the Board of Directors on October 17 , 1977 , of its Ordinance No. 7705 , An Ordinance Authorizing the Execution of Loan Agreement and Providing for the Issuance and �•. Sale of Emergency Drought Relief Promissory Notes of 1977 to the United States of America Acting Through the Farmers Home Administration. Dated: July i 1 1978 ) Cl' District Cler Truckee-Donner Public U ility District WILSON, MORTON , ASSAF & McELLIGOTT Attorneys and Counsellors at Law 630 North San Mateo Drive San Mateo, California 94401 PLM: im 5/25/78 r"S i TRUCKEE-DONNER PUBLIC UTILITY DISTRICT County of Nevada, State of California $251, 800 EMERGENCY DROUGHT RELIEF PROMISSORY NOTE OF 1977 RECEIPT FOR NOTE RECEIPT is hereby acknowledged from the Truckee-Donner Public Utility District, County of Nevada, State of California, of a single note , ("The Note") representing an obligation by contract , to repay an amount of not to exceed $251,800 , designated "Emergency Drought Relief Promissory Note of 1977" . Said note bears even date herewith, is numbered R-1977-1 , is issued without coupons in fully registered form in the name of the United States of America, Farmers Home Administration ("The Govern- ment") , is deemed to evidence a loan in the principal amount of not to exceed $251, 800 , and matures and is payable in not to exceed thirty-nine (39) annual equal amortized installments , including interest , of $14, 800 . The aggregate principal amount of note actually issued is equivalent to the aggregate amount of the payment for the note by the Government and the note bears interest at the rate of 5% per annum, payable as provided in the Resolution providing for its issuance. Dated: July 11 , 1978 UNITED STATES OF AMERICA FARMERS HOME ADMINISTRATION By K.J X, CPuX f Sa t✓ r% So,-- y � WILSON, MORTON, ASSAF & McELLIGOTT Attorneys and Counsellors at Law 630 North San Mateo Drive San Mateo, California 94401 PLM: im 5/25/78 07 f TRUCKEE-DONNER PUBLIC UTILITY DISTRICT County of Nevada , State of California $251, 800 EMERGENCY DROUGHT RELIEF PROMISSORY NOTE OF 1977 FIRST ADVANCE r^ RECEIPT FOR PROCEEDS OF NOTE RECEIPT is hereby acknowledged from the UNITED STATES OF AMERICA, FARMERS HOME ADMINISTRATION of $ on6, C'° as payment on the date hereof for a fully registered note in the principal amount of not to exceed $251 ,800 designated Truckee-Donner Public Utility District Emergency Drought Relief Promissory Note of 1977 , issued by the Truckee-Donner Public Utility District , of the County of Nevada, State of California, numbered R-1977-1 and dated the date hereof. The principal amount of note issued is equivalent to the aggre- gate amount of payment for the note by the Farmers Home Administration (exclusive of accrued interest , if any) , and the note providing for its issuance. Authorized Principal Amount : $251, 800 00 Payment Received: $/6/0000, Dated: July 11 1978 TRUCKEE-DONNER PUBLIC UTILITY DISTRICT By j i� ,-2� K rl Kuttely Vice President of the Board WILSON, MORTON, ASSAF & McELLIGOTT Attorneys and Counsellors at Law 630 North San Mateo Drive San Mateo, California 94401 1W. J .or "Hw7 , Wffi , tl 711 k MO. UNITED STATES OF AMERICA &IATE OF C�RNIA TRUCKEE-DONNER PUBLIC UTILITY DISTRICT COUNTY OF NEVADA/ EMERGENCY DROUGHT RELIEF PROMISSORY NOTE OF 1977 NO. R-1�77-1 $251,800 The Truckee-Dormer Public Utility District,in the County of Nevada,State of California,a public Utility district organized and existing under the Constitution and laws of the State of California,for value received hereby obligates itself to Pay to the United states of America,Farmers ix Home Administration, or registered assigns(subject to prior redemption),from the Emergency Drought Relief Promissory Notes of 1977 Note N Fund.,the aggregate principal amount of TWO HUNDRED FIFTY-ONE THOUSAND EIGHT HUNDRED DOLLARS($251,800),together with :-I interest thereon from date at the rate of FIVE PERCENT(S%)Per annum,payable on the anniversary of the date hereof,commencing in 1979. Thereafter the principal amount shall be payable in not to exceed 39 annual equal amortized installments of principal and interest in the amount of Fourteen Thousand Eight Hundred Dollars($14.800),commencing on the anniversary of the date here-of in 1980,and thereafter on said date in I* each Year until maturity.If,on presentation on any Payment date,payment of the installment or installments of principal and interest her f is not made in full,the installment shall continue to bear interest a hereof t the rate stated herein until paid in full. The aggregate principal amount of the Notes shall not exceed the the dates thereof are endorsed here-on by the Treasurer,and a princip aggregate pa yments by the Government for the Notes,as said payments and al amount of said Note of the longest maturity equivalent to the difference between such aggregate Principal amount and such aggregate payments shall be deemed unissued. Interest on this fully registered Note shall be determined on the Government's aggregate of payments for the Note from the respective dates of payment as endorsed hereon by the Treasurer.In such event the Note shall be paid in not to exceed 39 annual equal amortized installments,the last a required to pay the last installment of principal and interest. p yment being adjusted to represent the amount This Note is issued in total principal amount of Two Hundred Fifty-One Thousand Eight Hundred Dollars($251, and is under and pursuant to the Constitution and Statutes of the State of California,in particular the Revenue Bond Law of 1941 and800)Articleissued 9 thereof(com- iti mencin-at Section 54610 of the Government Code of the State of California),Resolution No.77-47,a Resolution Providing for the Issuance and Sale of Emergency Drought Relief Promissory Note of 1977;Prescribing the Amount,Date,Form,and Maturities Thereof;Fixing the R .......... n;and Providing for the Pledge of Revenues to Pay the Principal Thereof and Interest Thereon,as amended,and Ordinance No. 'V if Interest Thereo ate of 0 Sale of Emergency Drought Relief Promissory h the Farmers Home Administration,the"Government",the"Indenture",and under .......... Notes of 1977 to the United States of America Acting through and Providing for the Issuance and if an Ordinance Authorizing the Execution of Loan Agreement a 7705 and pursuant to the proceedings therefor of said District duly had and taken. If Both principal and interest are payable solely from the Revenues as defined in said Indenture,and the Truckee-Donner Public Utility District is not obligated to pay the principal hereof or interest hereon except from the revenues of an Enterprise consisting of the District's system,works 7� and facilities used for or useful for the purpose of obtaining,treating and supplying water for domestic use,irrigation,sanitation,industrial use fire protection recreation,or any other public or private uses of the District and its inhabitants, qlj� said Revenues, except that Additional Notes or obligations may be issued on a parity of lien in a'crchoe Note constitutes a first and prior ben upon J ferred to,or subordinate as to the lien thereof. rdance with the Indenture hereiribefore re- Or All of the Revenues to be derived from the charges of the Enterprise,including Revenues from improvements,additions,and extensions thereto i* which may hereafter be constructed or acquired within said District,are pledged to pay the principal of and interest on the Notes,and to provide 7. (1)a Note Fund,(21 Res—e Fund,(3)operation and maintenance funds,and(4)a Surplus Fund,as provided in said Indenture. 0 t The District has created a special Emergency Drought Relief Promissory Notes of 1977 Note Tvnd for tAa pay imm of acid*ad� w, a" ft est and has agreed to set aside in said fund,at the times as in said Indenture provided,the amount necessary do pap inarew d 26118 ;y \'cal • fall due. For the further protection of the payment of the Notes and the interest thereon when due,the District has created a special Reserve Fund,into ' which it has agteed to pay,on the first day of July next following the completion of the project for which the Notes were issued and for the next • successive 9 years,a sum equal to 1/10 of the amount required to equal the average annual amount of principal and interest on the Notes to be •, \ paid during their term,which fund shall be used solely as a guarantee for the payment of the principal of and interest on the Notes. Both the principal hereof and interest hereon are payable by the Treasurer of the District,Truckee,California,by check,draft,or warrant ; 'D mailed to the registered owner at its address as it appears on the register maintained in the office of said Treasurer. The principal hereof is subject to call and redemption in whole or in part,at the option of the District,upon payment to the registered owner =: hereof of the principal so redeemed,as provided in the Indenture providing for the issuance hereof. $„ Payments made on the obligation evidenced by this instrument,regardless of when made,shall be applied first to interest due through the date •: _ !` ' y-� of payment and next to principal except that payments made from security depleting sources shall,after payment of interest to the payment date, > ;, !F be applied to the principal last to become due hereunder and shall not affect the obligation of the District to pay the remaining installments as 1' scheduled. r This Note is transferable by the registered owner hereof in person or by its attorney duly authorized in writing at the office of the Treasurer of ' a the District,Truckee,California. , <^`"-• This Note may be exchanged for fully registered Notes of denominations and in the manner provided in the Indenture providing for the issu },. 'i �'• ance hereof. '`P This Note is given as evidence of a loan to Truckee-Donner Public Utility District made by the United States of America,pursuant to the t Consolidated Farm and Rural Development Act,and shall be subject to the present regulations of the Farmers Home Administration and to its future regulations not inconsistent with the express provisions hereof or of the Indenture providing for the issuance hereof. "* !« a _ his hereby certified,recited,and declared that all acts,conditions,and things required by law to exist,happen,and to be performed prece ;• dent to and in the issuance of this Note have existed,happened,and been performed in due time,form,and manner as required by law and that the amount of this Note,together with all other obligations of said District,does not exceed any limit prescribed by the Constitution or Statutes '�'• id State that the District is authorized by law to operate the Enterprise herein referred to,and the Legislative Body has established and has of said tate an , r w: covenanted to maintain rates and charges sufficient with other revenues received to pay the amount of principal and interest as it shall become due. /w_ 1N WITNESS WHEREOF,the Truc�ee-Donner Public Utility District has caUsed this Note to be executed under its official seal,signed by its a. • President and countersigned by its Cl rk, and this note to be dated the It h day of u 1 y —, 1978. ' COUNTE GNED: V i Ce resident,Truck e-Donner Public Utility District ram. rrs�` (SEAL) �rF Clerk,Truckee Donner Public tkllity District Karl Kut to 1 } + '• A. Milton Seymour �� '��_'_��.�:+=+'=�3_►_r-a,-x�.�r-r�:w_r«-.-s mat ate_-s.�._x��r_•�-�y-'��y}-�a++-a-a_f.w.-axr.Y-- o_r__-+a.-+<,4-..�-.-,>_iy:.s_i r +r-y':►-+'-!'._t_�_� �r��gf�.c,7�, p a �� `.tl��'�'- `�` �cs A- x a s_ wn3riC *dN `'1hi y3 .:$:_ �'P. / �' l i i 3i `silt \( •fr 1✓�:.J' + a i ,./, ��. r :, r t• r ;i v c �,!.t.1 r ,t /,,. , V f ir,•: st3st' c tf #>ttl�itJ ��fjtfi silt :...4`ftr /% .f#t r � ,�.:\: x 1� t f- x r~ �`' l�!'.•f r o ?- -/~.G�,,, - ."�4._ x [ '•�. ��f ;•K� ri'1, t• 1�•1 .1�t+ ,'%t�.� ::i�'s .r,\,.../:i 4, r y?,l:= ,t .1lY111.ti tfi .` s.�Ott f.y •• ;�GJES, i 1 ENDORSEMENT OF PAYMENT The United States of America, Farmers Home Administration,has duly paid for the purchase hereof,on dates and in amounts,as follows: Date of Payment Amount of Payment Signature of the Treasurer TRANSFER FOR VALUE RECEIVED,the undersigned hereby sells,assigns,and transfers unto the within note and hereby irrevocably constitutes and appoints attorney to transfer said note on the registry books kept for that purpose with full power of substitution in the premises. Dated: WITNESS: 9 ' t f E S- ll� i TREASURY 4 FISCAL SERVICE KANSAS CITY. KANSAS Check No. 6 71 8 5 9 411r _ � • DIVISION OF SYMBOL 3114 0 1 DISBURSEMENT bid 0 ftft-affm" 000 1 ° PAY TO TH E 1 DOLLARS � :D �; _�� ORDER OF TRUCKEE-DCNVER : $ 186CU0 OU j2NTHI DAY I YEAR PUBLIC UTILITY 0 I S T c7 os a 1 1 11 111 FO, ►1A LOAN NN 040946001.449 0 1 1 4 zo PLk ENCLOSED CARD NOTICE �sf, u O 1 — Y is 1 111 1 1 111 3 1 L4 III' 1:00001"00 5 Li: 6 M 594 1 L4u' v, P t .. A 54 rc. I WI soN. MORTON. AssAF & MCELLIGOTT ERNEST A. WILSON JEREMIAH J. LYNCH ATTORNEYS AND COUNSELLORS AT LAW CHARLES N. KIRKBRIDE JAMES T. MORTON MICHAEL R. NAVE 1894-1911 PHILIP D. ASSAF JAMES L. COPELAND 630 NORTH SAN MATEO DRIVE KIRKBRIDE 6 GORDON PEGGY,L. MCELLIGOTT MAYER A. DANIEL (JOSE►H S. GORDON' THOMAS S. ADAMS P. O. BOX 152 1911-1929 SHERROD S. DAVIS JOAN E. BRIODY $AN MATED CALIFORNIA 9440f KIRKBRIDE A WILSON . LAWRENCE C. JENSEN ROY J. KOEGEN 1929-1947 GERALD A. LASTER JAMES M. PARMELEE [4151 342-3523 KIRKBRIDE.WILSON.HARZFELD h WALLACE 19474961 WILSON,JONES,MORTON Q LYNCH July 11 , 1978 196119" NEWPORT BEACH OFFICE SUITE 1530 660 NEWPORT CENTER DRIVE NEWPORT BEACH. CA 92660 .� [7141 759-1601 The Honorable Board of Directors Truckee-Donner Public Utility District P. O. Box 319 Truckee, CA 95734 Re: Farmers Home Administration Drought Relief Financial Assistance Water System Improvements Dear Sirs: We hereby certify that we have reviewed the legal authority for, and the proceedings had by, the Truckee Donner Public Utility District (herein called the "District") , to accept assistance under the Consolidated Farm and Rural Development Act and under the Constitution and Laws of the State of California. 1) The District is a Public Utility District duly authorized and existing under and by virtue of the laws of the State of California, and is duly authorized to own and operate an enterprise comprised of facilities necessary or convenient to furnish water for beneficial uses within the District. 2) In our opinion, based upon assurance by the District that it will cause the work to be financed to be completed by April 30, 1978, or within such extension of time as the Farmers Home Administration may approve, the District has lawful authority under the Constitution and laws of the State of California now in force and specifically pursuant to Section 16578 of the Public Utilities Code of the State of California and to Sections 54610 through 54613 of the Government Code of the State of California, being a part of the Revenue Bond Law of 1941 (Government Code Section 54300, et seq. ) , to accept a grant and a loan and to incur an obligation by contract to repay such loan made pursuant to the Consolidated Farm and Rural Development Act. 3) The District has, pursuant to proceedings heretofore had, duly and validily executed a contract and agreement with the United States of America, Farmers Home Administration, and said contract as The Honorable Board of Directors Truckee-Donner Public Utility District July 11 , 1978 Page 2 executed and completed constitutes a valid, legal and binding special obligation of said District, as provided in the Revenue Bond Law of 1941. A note in the amount of not to exceed $251, 800, executed as authorized and directed, pursuant to said contract and Ordinance No. 7705, adopted October 13, 1977, as thereafter amended, and Resolution No. 77-47, providing for the issuance and sale of said note, adopted October 13, 1977 , as thereafter amended, represents said obligation and is payable according to its tenor and is not to exceed such amount. The obligation of the District shall be the sum loaned by the Farmers Home Administration under said contract. 4) In our opinion, the interest on the obligation is exempt from taxation by the United States of America under present federal income tax laws and from State of California personal income taxes under existing statutes, regulations, rulings and court decisions and the obligation is exempt from all other State of California taxes except inheritance, gift and franchise taxes; except that with respect to interest on any part of the obligation sold out of the Rural Development Insurance Fund as an insured loan (such fund being referred to in 7 U. S.C. Sec. 1929a) , we express no opinion as to the exemption of such interest from taxation by the United States of America. Respectfully submitted, WILSON, JONES, MORTON & LYNCH PMcE:ar