HomeMy WebLinkAbout12 - Attachment 5 - Draft Purchase ContractD RAF T
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T R U C K E E D O N N E R PU B L IC UT IL IT Y D IS T R IC T
W A T E R S Y ST E M RE FU ND IN G R E V E NU E B O ND S, S E RI E S 20 15
PUR C HA SE CON TRA CT
_______ __, 2015
Board of D irec t ors
T ruckee D onner Public U t ilit y D is tr ic t
11570 D onner Pass R oad
T ruckee, CA 96161
L ad ies a nd G e nt leme n:
T he u nders ig ned (the “U nderw r iter”), offers to en ter int o this Purc hase C ontract (t he “P urc hase
Contract”) w ith th e Tru c kee D onner Pu b lic U tilit y D is tr ict (t he “D istr ict”), w hic h, upon the D is trict’s
accept a nce hereof, w ill be b ind ing upon the D istr ic t and the U nd erwriter. This offer is made subject
to t he w r itten ac cepta nce of t his Pu rc hase C ontract b y t he D is tr ict and de liver y of suc h acceptance t o
the U nd erwriter at or pr ior to 11 :59 P.M., Ca lifornia T ime, o n the date hereof. C ap ita liz ed terms used
and not otherw ise de fined here in s ha ll ha ve the meanings give n to suc h terms in the Ind e ntur e (de fine d
be low ).
T he D istr ict ac know ledges and agre es tha t : (i) t he primar y r ole of the U nderw r it er is t o
purchase se cur ities for resa le t o investors in a n ar m s-leng th c om merc ia l tra nsaction betwee n t he
D is tric t and the U nderw rit er a nd tha t the U nderw r iter has fina nc ia l a nd other interes ts tha t d if fer from
thos e of the D is tric t, (ii) the U nd erw riter is not act ing as a mu nic ipa l ad v is or, fina nc ial ad vis or or
fiduc iar y t o the D istr ict or a ny other person or entity a nd has not assumed any ad vis or y or fiduc iar y
respons ib ility to the District w ith respect t o the tra nsaction c onte mp lated her eb y a nd the d is cus s ions,
underta kings a nd pr oce ed ings le ad ing t her eto (irr espect ive of whe ther t he Und erwriter has p r ovid ed
ot her services or is current ly p rovid ing other ser vic es to the D istr ict on other ma tters), (iii) t he only
ob lig at ions t he U nderw r iter has t o t he D istr ict w ith respect t o t he transa ction c ontemp lated hereb y
exp ress ly are set for t h in this Pu rchase C ontract, exc ept as otherw ise provided b y app licab le ru les a nd
regu lations of the Secur ities a nd E xc ha ng e C om m iss ion (“S EC ”) or the ru les of t he M unic ipa l
Securit ies Ru lema king B oard (“MSR B”), a nd (iv) t he D istr ict has c onsu lted its ow n legal, acc ou nt ing,
tax, fina ncia l a nd ot her ad vis ors, as applicab le, to t he exte nt it has deem ed appropr iate in c onnect io n
w it h t he tra nsa ction c ontemp lated herein. T he D istr ict acknow ledges that it has pre vious ly pr o vid ed
the U nd erw riter w it h a n ac know ledge ment of rece ipt of the requ ired U nderw r iter d is c los ure u nder Ru le
G -17 of the M SRB .
1 . P urc hase and S ale of the B ond s . U pon the term s a nd cond it ions a nd in re lia nce up on
the rep rese ntat ions, w arra nties a nd ag ree me nts her e in set forth, t he U nd erw r iter her eb y agrees to
purchase fr om the D istr ict for reoffer ing t o the pub lic, a nd the D is tr ict hereb y agrees to se ll to t he
U nderw riter for suc h purp ose, a ll (but not less tha n a ll) of $_____________ aggregate pr inc ipal am ou nt
of t he D is tr ict’s W a ter S ys tem Re fu nd ing Revenu e Bo nds, Series 2015 (the “B onds”). The B onds
sha ll bear interest at t he rates, s ha ll mature in the year s and s ha ll be sub jec t to red emption as show n on
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Appe nd ix A heret o, w hic h is incorp orated herein b y t his re ference. T he B onds s ha ll be d ated the da te
of de liver y there of (the “Date of D e liver y”) a nd s ha ll bear interes t fr om suc h d ate, p ayab le
semia nnua lly on e ach M a y 15 a nd N ovember 15, comme nc ing N ovember 15, 2015. T he U nderw r it er
sha ll pur c has e the B onds at a pr ice of $_____________ (cons is ting of the pr inc ipal am ou nt of the
Bonds of $________________, p lus ne t or ig ina l iss ue premiu m of $_______________, and less
U nderw riter’s d isc ou nt of $_______________).
2 . The B o nds. The B onds s ha ll be d a ted the ir Date of D eliver y. The B onds s ha ll ma ture
on t he dat es a nd in the years s how n on Appe nd ix A here to, sha ll ot herw ise be as descr ibed in t he
O ffic ia l S tate m e nt (de fined here in), a nd s ha ll be issued and secured pursu ant to t he pr ovis ions of the
Inde ntur e of Trust d ated as o f June 1, 2015 (the “Indenture”) be tw een t he D istr ict a nd T he Ba nk of
N ew Y ork M e llon Trust C ompany, N .A., as truste e (the “Trustee”). Th e D istr ict’s ob lig at ion to pa y
the p rinc ipa l of a nd interest on the Bonds is a lim ited ob lig at ion of t he D istr ict pa yab le sole ly fr om Net
Reve nu es, const ituting R evenues rema in ing a fter pa yment of O peratio ns a nd M a int e na nce C os ts .
T he Bonds s hall be executed a nd d elivered u nder and in acc orda nce w ith t he p r ovis ions of this
Pu rchase C ontra ct a nd the Indentur e. T he B onds sha ll bear CU S IP numb ers, a nd sha ll be in fu ll y
registered book-e ntr y f orm, reg ister ed in the nam e of Cede & Co., as nom ine e o f T he D epos itor y Trust
Compa ny, N ew Y ork, N ew Y ork (“DT C”). The Bonds shall initially be in aut hor iz ed den om inations
of F ive T hous a nd D ollars ($5,000) pr inc ip a l am ou nt, or any integra l mu ltip le t here of.
T he ne t proceeds of t he B onds will be used to adv anc e refu nd a port ion of t he outs ta nd ing
T ruckee D onner P ublic U t ility D is tr ict Re fu nd ing Re ve nue Cer tificates of P articipation (W ater S ys te m
Improve me nt P rojects), S er ies 2006 (the “R e fu nd ed Certific ates”); pursua nt t o an Escrow Agre em e nt
dated as of _______ 1, 2015 (the “Es crow Agree m e nt”), b y and betw een the D is tric t a nd T he Ba nk of
N ew Y ork M ellon Trust C ompa ny, N .A., as escr ow agent (the “Escrow Ag e nt”). T he ne t proceeds o f
the B onds w ill be dep os ited into a n escr ow fu nd he ld pursuant to t he Escr ow Agreeme nt a nd invested
in certa in F ed era l Se cur it ies, as such term is de fined in the Inde nture, t he princ ipa l of a nd inter es t on
w hich shall b e used to pa y t he prepa ym e nt pr ice of the Re fu nded Certifica tes on their first ava ilab le
prepa yment da te, a nd in terest due t here on on and be fore s uc h date.
Pa yme nt of t he principa l and interest e vid e nced b y th e B onds matur ing on a nd a fter N ovemb er
15, 20__, throug h a nd inc lud ing N ovember 15, 20 __ (collectively, the “Insur ed Bonds”), sha ll be
insured b y ______________ (t he “B ond Insurer”), w hic h sha ll is sue its mu nic ip a l b ond insu ranc e
polic y (the “I nsuran ce Policy”) guara nteeing s uch pa yment. T he D istr ic t w ill a ls o obta in a nd cause t o
be depos ited in t he R eserve Fu nd estab lis hed b y t he Inde ntur e a m unic ipa l b ond debt s ervice reser ve
insura nc e polic y iss ued b y _________________________ (the “Reser ve Insur er”) in an am ou nt equa l
to the R eserve Requ ireme nt (t he “Reser ve P olic y”).
3 . U s e of Docum ents. The D istr ict hereb y aut hor iz es the U nderw riter to u se, in
con nection w ith the offer a nd sa le of the Bo nds, t his Purchase C ontract, t he Escr ow Agree me nt, and
the O ffic ia l Stat eme nt (defined below ), the I nde nture and a ll information c onta ined her e in and t here in
and all of the d ocum ents, cert ificat es or s tatem ents furnis hed b y the D istr ic t to the U nderwr iter in
con nection w it h the tra nsac tions c onte mp lated b y t his P urchase Contract.
4 . P ublic Off eri ng of the B o nds . The U nderw riter a grees to m a ke a b ona fide p ub lic
offer ing of a ll the B onds at the init ia l pub lic offering pric es or yie lds t o b e set fort h on the ins id e c ove r
page of the O ffic ia l State me nt. Su bsequent t o such init ia l pub lic offer ing, t he U nd erwriter r eserves the
rig ht to cha nge such initia l pub lic offer ing p rices or yie lds as it dee ms ne cess ar y in c onnection w it h
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the mar keting of t he Bonds . O n or prior to the C los ing, the U nderw r iter s ha ll certify to the D istr ict in
w riting, in form and substance sa tis factor y t o the D istric t a nd to Str ad ling Y occa C ar lson & R auth, a
Professiona l C orp orat ion, b ond c ou nse l w ith r espect to t he B onds (“B ond C ou ns e l”): (i) t ha t as o f the
date of sa le, a ll of the B onds w ere reasonab ly expec t ed to b e re offered in a b ona fid e p ub lic offer ing;
(ii) t ha t as of the date of t he cert ific ation, a ll of the Bonds purchased had actu a lly b een offered t o the
gener a l p ub lic; and (iii) the m ax imu m initia l b ona fide o ffer ing pr ic es at w hich a substantial am ou nt
(at least 10%) of e ach matur ity of t he Bonds purc has e d was s old or w as reasonab ly expe cted to be s old
to the ge nera l pub lic.
5 . R eview of Offic ial Statem ent. The U nd erwriter her eb y represe nts tha t it has rece ived
and re viewed the P relim inary O ffic ia l S tate me nt w ith respect t o t he B onds, d ated __________, 2015
(the “Pre lim in ar y O ffic ia l Stateme nt”). T he D istr ic t repr es ents that it has du ly aut hor iz ed a nd prepare d
the P re lim inary O ffic ial Stateme nt for use b y the U nd erw rit er in c onnec t ion w ith the s a le of the B onds,
and that it has deemed the Pre lim inar y O ffic ia l Stateme nt t o be fina l as of its date, exc ept for eithe r
revis io n or add it ion of the of fer ing pr ice(s), interest r ate(s), yie ld(s ) to m atur ity, s e lling c omp ensation,
agg reg ate pr incip a l am ou nt, pr inc ip a l am ou nt per ma tur ity, de liver y date, rat ing(s ) and ot her terms of
the Bonds w hic h depe nd u p on the foreg oing as provid ed in a nd pursu ant to R u le l5 c2-12 of t he SEC
promu lg ated u nder t he S ecur ities Exc ha nge Ac t of 1 934, as amend ed (the “R u le”).
T he U nd erw riter agrees t hat pr ior to the tim e the fina l O ffic ia l Stateme nt (the “O fficia l
Stateme nt”) relating to the B onds is a va ilable, the U nderw rit er w ill send t o any p ote ntia l purc has er of
the B onds, upon the request of suc h p ote nt ia l purc has er, a cop y of the m ost rec e nt P re lim inar y O ffic ia l
Stateme nt. S uch Pre lim inary O ffic ia l St ate me nt shall be s e nt b y first c lass ma il or ele ctr onic
distr ibu tion (or other equa lly pr omp t mea ns ) not later tha n t he first business da y follow ing the dat e
upon w hich each such r equest is r ece ived. T he D is trict sha ll pr ovid e e vidence to th e U nder w riter that
it has deemed the P relim inar y O ffic ia l Sta tem ent fina l as of its date, in acc orda nce w ith the provis io ns
of the Ru le. T he P re lim inar y O ffic ia l Stat eme nt has been prepared for use b y t he U nderwr iter in
con nection w it h the pub lic offer ing, s ale and d is tr ib u tion of the B onds.
6 . C los ing. At 8:00 A.M., Californ ia T im e, on __________, 2015, or at such other t ime
or on s uch ot her d ate as sha ll ha ve bee n m utua lly agr eed up on b y t he D is tr ict a nd t he Und erwr iter (t he
“C los ing ”), the D istr ic t w ill de liver t o the U nderw riter, thr oug h t he facilit ies of D TC in N ew Y or k,
N ew Y ork, or at s uch other p lace as t he D istr ict a nd the U nderw r iter ma y mutua ll y agre e up on, the
Bonds in fu lly reg is tered b ook-entr y form, du l y exec uted a nd reg ister ed in t he name of Cede & C o., as
nom inee of D TC, and at the offices of Bond C ou ns e l, the other d ocum ents her eina ft er me ntioned; a nd
the U nderw r iter w ill acc ept such de livery a nd pa y the purc hase pr ice of the B onds id ent ified in Sec t ion
1 abo ve in imm ed iately a va ilable fu nds t o the a cc ou nt or a ccou nts des ig nat ed b y the D istr ic t.
7 . R epresentations, W ar rant ies and A gre em ents of the D istrict . T he D istr ic t hereb y
represents, w arrants a nd agrees w it h t he U nderw riter that:
(a ) D ue O rganiz ation. The D is tric t is a p ublic utility d istric t du ly orga niz ed a nd
va lid ly ex ist ing u nd er t he law s of t he State o f Ca lifor nia (the “S tate”), w ith the fu ll leg a l r ig ht,
pow er a nd authorit y to issue the B onds purs ua nt t o the Ac t a nd t o obser ve and p er form t he
D is tric t’s cove na nts a nd agre eme nts c onta ined here in and t here in.
(b) D ue Authoriz ation. (i) A t or pr ior to the C los ing, the D is tr ict w ill ha ve ta ke n
a ll a ction requ ired t o b e ta ke n b y it t o aut hor iz e t he is suance a nd de liver y of t he B onds; (ii) the
D is tric t has fu ll lega l rig ht, p ow er a nd au t hor ity t o r efu nd t he Refu nded C ert ifica tes, t o e nte r
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into this Purc hase Co ntract, t he Inde nture, the Conti nu ing D is c losure Certific ate (as def ined
here in) a nd t he Es crow Agreem ent, t o per form its obligations u nder eac h suc h d ocume nt or
instrum e nt, to appr ove t he O ffic ia l St ate me nt a nd to carr y out a nd e ffectu ate the tra nsac tions
cont emp lated b y this P urc hase C ontract, the Escr ow Agreement, the Cont inu ing D isc losure
Certific ate a nd t he Inde ntur e; (iii) the ex ecution a nd de livery or ad opt ion of, a nd t he
perform a nce b y t he D istr ict of t he ob lig at ions c onta ined in the Bonds , t he Ind enture, the
E scrow Agreem e nt, th e C ont inu ing D isc losure Cer tificat e a nd this P urchase C ontract ha ve
been du ly aut hor iz ed and such authoriz at ion s ha ll b e in fu ll force a nd effe ct at the time of the
Clos ing; (iv) this Purchase C ontra ct, assum ing t he du e aut hor iz a tio n a nd execu t ion b y t he ot her
part y t here to co nst itu tes a va lid and lega lly b ind ing ob ligation of t he D istr ict; and (v) t he
D is tric t has du ly aut hor iz ed t he c onsummation b y it of a ll tra nsact ions conte mp lat ed b y t his
Pu rchase C o ntra ct.
(c ) Conse nts . N o c onse nt, appr oval, authoriz at ion, order, filing, reg istr ation,
qualific ation, e le ction or re ferendu m, of or b y a ny c ou rt or g over nm enta l agenc y or p ub lic b od y
w hats oe ver is requ ired in c onnection w it h t he issu anc e, de liver y or s a le of the B onds , the
execut ion and d e liver y of this P urchase C ontract, the Inde nture, or the c onsummat ion of the
ot her tr ansact ions effec ted or c ontemp lated here in or hereb y, excep t for s uch actions as ma y
be nec ess ar y t o qua lif y th e B onds for offer a nd sa le u nder t he B lu e S ky or other secur ities laws
and regu lations of suc h states a nd jur isd ictions of the U nited States as the U nd erw riter ma y
reasonab l y r eq ues t, or w hich ha ve not be e n ta ke n or obta ined; pr ovided, how e ver, that t he
D is tric t s ha ll not be r eq u ired to sub ject its e lf to ser vice of pr oces s in a ny jur isd iction in w hic h
it is not so s ub je ct as of the da te hereof.
(d ) Inter nal R e ve nu e Cod e. T he D istr ict has c omp lied w it h the requ ire ments of
the Inter na l R e venue C ode o f 1986, as amend ed (the “Cod e ”), w ith res pect to the B onds.
(e ) N o C onf licts . T o t he b est know ledge of the D istr ict, t he is suance of t he B onds,
and t he execu tion, de liv er y a nd per forma nce of t his P urchase C ontr act, the Es cr ow Ag ree me nt,
the Cont inu ing D isc losure C ertificate, the Inde ntur e and the B onds , and t he comp liance w it h
the provis ions here of do not c onflict w ith or const itu te on the part o f the D istr ict a v iola tion of
or de fau lt u nder, th e C ons titu t ion of the S t ate of Ca liforn ia or a ny ex ist ing law , c hart er,
ord ina nce, r egu lat ion, d ecree, order or r es olut ion a nd do not c onflict w it h or resu lt in a violatio n
or breac h of, or constitute a defau lt u nder, a ny agree ment, inde nture, m ortgage, le ase or ot he r
instrum e nt t o w hic h the D istr ict is a party or b y w hic h it is bou nd or to w hic h it is s ub jec t.
(f) L itiga tion. As of t he t ime of accep ta nce hereo f, no action, su it, pr oce ed ing,
hear ing or investigat ion is pe nd ing or, to t he b est know ledge of the D istr ict, t hrea tened agains t
the D istr ict : (i) in a ny wa y a ffe cting the ex iste nc e of the D istr ict or in a ny w a y c halle ng ing the
respective p ow ers of the se vera l offices of the D istr ict or of the tit les of t he offic ia ls of t he
D is tric t t o suc h of fices; or (ii) se e king t o restr a in or e njoin the sa le, issuance or d e livery of an y
of the B onds, the app lic at ion of the pr oceeds of the sa le of the B onds , or in any w a y contesting
or affect ing the va lid ity or e nfor ceab ilit y of the B onds, this Purc has e Contract, the Escr ow
Agreem e nt or t he Indenture or c ontesting the p owers of t he D istr ict or its author it y w ith r espect
to the B onds, the Inde nture or this Purc has e Co ntract ; or (iii) in whic h a fina l ad verse decis io n
cou ld (a) materia lly ad verse ly a ffe ct t he oper ations or fina nc ia l c ond ition of the D is trict or the
consumm ation of t he tra nsact ions c ontemp lat ed b y this Pur c has e C ontra ct, t he Escr ow
Agreem e nt or the Inde nture, (b) declare t his P urc has e Contr a ct t o be inva lid or u ne nforceab le
in w hole or in ma ter ial p art, or (c) ad versely a ffect the exc lus ion of the int erest p a id on the
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Bonds fr om gr oss income for fed era l inc om e tax purposes a nd t he exemp tion of suc h interes t
fr om C a lifor nia p ers onal incom e taxa t ion.
(g ) No O ther D ebt. Betw e e n the date here of and the Clos ing, w ithou t t he pr ior
w ritte n conse nt of t he U nd erw riter, ne ither the D is tr ic t, nor any pers on on be ha lf of the D is trict,
w ill have issued in the nam e and on be ha lf of t he D ist rict a ny b o nds, notes or ot her ob liga tions
for b orr ow ed money excep t for suc h b orr ow ings as ma y b e des cr ibed in or cont emp la ted b y
the O ffic ia l St ateme nt.
(h) Cert ific ates. A ny c ertificates sig ned b y a ny officer of the D istr ict a nd de livered
to the U nderw riter sha ll be d eemed a r epr ese ntation a nd w arrant y b y the D is tr ict to the
U nderw riter, but not b y t he pers on s ignin g the s am e, as to t he s tate me nts made therein.
(i) Continu ing D isc losure. In ac cord a nce w it h the requ ireme nts of Ru le 1 5c2-1 2
(the “Ru le”), at or prior to t he C los ing, the D istr ict s ha ll ha ve du ly aut hor ized, execu ted and
de livered a C ontinu ing D isclosu re C ertificate (t he “C ontinu ing D is closure C ertificate”) on
beha lf of ea c h ob liga ted pers on for w h ic h fina nc ia l and/or op erat ing data is presented in t he
O ffic ia l Statem e nt (as d e fined herein). The C ontin uing D is c los ure Certific ate sha ll comp ly
w it h the pr ovis ions of the Ru le a nd be s ubsta ntia lly in the for m attac hed t o t he O f ficia l
Stateme nt as Appe nd ix E . Except as otherw ise d isc losed in the O ffic ia l St ate me nt, the D istr ic t
has not, w ithin th e past five years, fa iled to c omp ly in a mater ia l res pe ct w ith any of its prev ious
underta kings pursuant to the Ru le to p r ovide a nnu al r eports or notice of certa in lis ted e ve nts .
(j) O ffic ia l State me nt A ccurat e a nd Comp lete. The Pre lim inary O ffic ia l
Stateme nt, at the date there of, d id not c ontain a ny u ntrue sta teme nt of a m ater ial fact or om it
to stat e a ny m at er ia l fact r equ ired to be stated there in or necessar y to ma ke th e s tateme nts
therein, in t he lig ht of the c ir cumsta nc es under w hich the y w ere made, not m is lead ing. As of
the date hereo f the O ffic ia l S tatem ent d oes not, a nd as of the C los ing D ate, t he O ffic ia l
Stateme nt will not c onta in a ny u ntrue sta tem ent of a mater ia l fact or om it t o state a ny ma ter ia l
fac t requ ired to b e s tated therein or ne cess ary to ma ke the state me nts ther e in, in the lig ht of t he
c ircumstanc es u nder w hic h the y w ere made, not m is lead ing. T he D istr ict ma kes no
representation or w arra nty as to t he inform ation conta ined in or om itted fr om the Pre lim inar y
O ffic ia l State me nt or the O ffic ia l Statement in re lia nc e upon a nd in conform ity w ith
inform ation fur nis hed in w riting to the D istr ict b y or on b eh a lf of t he U nderw r iter t hr oug h a
representative of the U nderwr iter spec ificall y for inc lusion t her ein.
(k) Repres entat ion R egard ing Re fu nded C ert ificates. The D istr ict hereb y
represents that it has not e ntered int o a ny c ontract or ag reeme nt that w ou ld lim it or restr ict th e
D is tric t’s ab ilit y t o re fu nd the R e fu nded Certific ates or enter into this P urchase C ontrac t for
the sa le of the B o nds to t he Underw r it er .
(l) N o M aterial Ad verse C ha nge. T he fina nc ia l st atem e nts of, a nd other fina nc ia l
inform ation regard ing the D istr ict, in t he O ffic ial Stateme nt fa ir ly prese nt the fina nc ia l p os it io n
and resu lts of t he D istr ic t as o f t he dates and for t he per iods there in set f orth. P rior to t he
Clos ing, there w ill be n o ad verse cha nge of a mater ia l nature in su ch fina nc ia l p os ition, resu lts
of op era tions or c ond ition, financ ia l or ot herw ise, of the D istr ict.
(m) Requir ed Filings. T he D istr ict her eb y ag rees to file (i) the F ina l Report of S a le
w it h t he C a lifornia D ebt a nd Investm ent Ad vis or y C omm iss ion w ithin 21 da ys of the C los ing
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D ate, a nd (ii) F or m 8038-G with the Interna l Re ve nu e Service w it hin 4 5 days of t he end of t he
fiscal quarter of t he C los ing D ate.
(n) N o Prior L ie ns on R e ve nues. Ex cept for c erta in ob lig at ions c onstitut ing Parity
D ebt and descr ib ed u nder the caption [“TRU C K EE-DO NN ER P U BLIC U T IL IT IES
D IS TRIC T - O uts tand ing D is tr ict O b ligations - O uts ta nd ing O b ligat ions Pa yab le F r om W a ter
S ystem Re ve nues”] in t he O ffic ia l S tateme nt, a ll of w hich are secured b y a par it y lie n on
Reve nu es, the D is trict d oes not a nd w ill not ha ve outs tand ing as of the d ate of C los ing a n y
indeb tedness secured b y a lie n on R e ve nues s uper ior to or on a par ity w it h t he lien of t he B onds
on t he R evenues.
8 . C ovenants of t he D istrict. T he D istr ict c ove na nts and agrees w ith t he U nd erw riter
that :
(a ) S ecurities Law s. The D istr ict w ill fur nis h suc h information, execute suc h
instrum e nts , and ta ke such other act ion in cooper a tion w ith the U nd erwriter if a nd as the
U nderw riter ma y re asonably request in order to qua lify the B onds for offer a nd s a le u nder the
Blue S ky or other se cur ities laws a nd regu lations of suc h sta tes a nd jur isd ictions, pr ovided,
how e ver, t ha t the D istr ict s hall not be requ ired t o cons e nt to ser vice of pr oc ess in a ny
jur isd iction in w hic h it is not s o sub jec t as o f the dat e here of;
(b) App lic at ion of P roceeds. T he D istr ic t w ill app ly the proce eds from the sa le of
the Bonds for t he purp oses specified in the Inde nture ;
(c ) O f fic ia l Sta teme nt. The D istr ict her eby agrees t o de liver or cause t o b e
de livered to t he U nderw r iter, not later t ha n t he s eve nt h (7th) bus iness day follow ing the da te
this Pu rc has e C ontra ct is s ig ned, c op ies of a final O ff ic ia l Statem e nt substa ntia ll y in t he for m
of the Pre lim inar y O ffic ia l St atem e nt, w ith only s uch c ha nges t here in as s ha ll ha ve bee n
accept ed b y the U nd erw riter a nd t he D istrict (suc h O ffic ia l S tateme nt w ith such c ha nges, if
any, a nd inc lud ing the cover page a nd all appe nd ices, exhib its, maps, repor ts and state me nts
inc luded t here in or attached t here t o b eing her e in c a lled the “O ffic ia l Statem e nt”) in suc h
quant it ies as ma y b e requ ested b y the Und erwriter not la ter tha n seven (7) bus iness da ys
follow ing the da te t his Purchase C ontract is s ig ned , in order to per m it the U nderwr iter to
com p ly w ith p aragr ap h (b)(4) of the R u le a nd w it h the rules of th e M SR B. The D istr ict her eb y
author iz es t he U nderw r iter t o use and d istr ibut e t he O ffic ial Stateme nt in c onnectio n w ith th e
offer ing and sale of the B onds ;
(d ) Subs equent E ve nts . The D istr ict hereby agrees t o notify the U nd erw r iter of
any e ve nt or o ccurrence that ma y a ffect the a ccurac y or c omp le te ness of a ny inform at ion s et
forth in the O ffic ia l St atem e nt relating t o t he D istr ict , until the date w hic h is nine ty (90) da ys
follow ing the C los ing;
(e ) Refer e nces. Re fer e nces here in to the Prelim inar y O ffic ia l Statement a nd t he
fina l O fficia l State me nt inc lud e t he c over page, the ins ide c over p age, a nd a ll appe nd ices,
exh ib its, maps, rep orts and stat ements inc luded therein or a tta ched t here t o; a nd
(f) Ame ndm e nts to O ffic ia l St atem e nt. Dur ing the per iod e nd in g on the 25th da y
after the E nd of the U nderw r it ing P er iod (or such ot her per iod as m ay be agr eed to b y the
D is tric t a nd t he U nderw riter), the D istr ict (i) shall not supp lem ent or ame nd the O f fic ia l
7
Stateme nt or cau se t he O ffic ial S tateme nt to be s uppleme nted or am end ed w ithou t the prior
w ritte n conse nt of the U nderwr it er a nd (ii) s ha ll notify the U nderwr it er prompt ly if an y e ve nt
sha ll occu r, or infor mation com es to the atte nt ion of the D istr ic t, that is reas onab ly like ly to
caus e the O ffic ial S tateme nt (w he ther or not pre viou sly s upp le me nted or am e nded) t o c onta in
any untrue s tateme nt of a m ater ia l fact or t o om it to s tate a ma teria l fa ct r equ ired to be s tated
therein or nec ess ar y t o ma ke t he s tat em e nts t here in, in the lig ht of the circumsta nces under
w hich they w er e mad e, not m is lead ing. If, in t he op inion of t he U nd erwr iter, suc h e ve nt
requ ires the prepar ation a nd d is tr ibut ion of a sup pleme nt or ame ndm ent to the O ffic ial
Stateme nt, t he D istr ic t s ha ll prep are and fur nis h to the U nderwr iter s uc h numb er of cop ies of
the supplem e nt or ame ndme nt to t he Offic ia l Statem e nt, in form a nd su bstance mu tua lly agreed
upon b y t he D istr ict a nd t he U nderwriter, as the Und erwriter ma y re asonab l y request. If suc h
not if ication s ha ll b e g ive n subsequ ent to the C los ing, the Distr ict a ls o s ha ll fur nis h, or caus e to
be furnis hed, su ch add itiona l lega l op inions , c ertific ates, instru me nts a nd ot her d ocume nts as
the Und erw r iter ma y reas onably de em necessar y to e vid ence the trut h a nd accur ac y of a ny s uc h
supplem e nt or ame ndm ent to the O ffic ia l S ta teme nt . The D is tr ic t sha ll pr omptly ad vise the
U nderw riter of t he c omme nceme nt of a ny act ion, suit, proc eed ing, inqu ir y or invest igation
seeking to pr ohib it, restra in or otherw ise a ffec t the us e o f the O ffic ia l Stateme nt in connect io n
w it h the offering, s a le or d is tr ibut ion of t he Bonds .
(g) F or purp oses of t his Agr eeme nt, the “End of the U nd erwrit ing Per iod” is used
as defined in t he Ru le a nd sh a ll occur on the later of (A) the date of C los ing or (B) w hen the
U nderw riter no longer reta ins a n u nsold ba lance of the B onds; u nless ot herw ise ad vised in
w riting b y t he U nderwr iter on or pr ior t o the C los ing, or otherw ise agreed to b y the D istr ict
and the U nderw r iter, t he D is tr ict ma y assum e t hat the E nd of the U nderw r it ing Per iod is the
Clos ing.
9 . R epresentations, W arra nties a nd A greem ent s of the U nder writer. The
U nderw riter repres e nts to a nd agrees w ith the D istr ic t that, as of t he da te here of a nd as of the C los ing :
(a) The U nderw r it er is duly aut hor iz ed to execu te t his P urchase C ontrac t a nd t o
ta ke a ny ac t ion u nder this Purchase C ontr act req u ir ed to be taken b y it.
(b) The U nderw r iter is not aw are o f any M u nic ip a l S ec urit ies R u lema king B oard
rule or other regu la tion w hic h wou ld prohib it it fr om acting as underw r iter w it h respect t o
securities o f the D istr ict.
(c) The U nderw r iter has, and has had, no financia l advisor y re lat ions hip, as that
term is de fined in Ca lifornia G over nm e nt C ode Sect ion 53590 (c), w ith t he D istr ic t w ith respect
to the B onds, a nd no investm e nt fir m c ontr olling, c ontrolled b y or u nder c omm on c ontr ol w ith
the U nderw rit er has or has had a ny suc h financia l ad vis or y re lations hip.
(d) The Und erwriter has reas onab ly deter m ined that the D istr ict’s u nder taking t o
provide c ontinu ing d isc losure w ith res pect t o t he B onds p ursuant to S ection 10(e)(10) hereo f
is suf ficie nt to effect c omp lia nce w it h the Ru le.
10. C ond itions to C los ing. The U nderw r it er has e nt ered into t his Purc hase Co ntract in
re lia nc e upon t he represe nta tions a nd w arranties of t he D istr ic t c ontained herein and the per forma nce
b y t he D istr ict of its ob ligations hereu nder, b oth as of the d ate her eof a nd as of the date of C los ing .
8
T he U nderwr iter’s ob lig at ions u nder t his P urchase Contra ct are a nd s ha ll be subject a t the option o f
the U nderw rit er, to the follow ing further cond it ions at the C los ing :
(a ) Representations True. T he rep rese ntat ions and w arranties of the D istr ict
cont a ined here in s ha ll be true, c om p lete a nd corr ect in a ll m ater ia l respects at the date here of
and at and as of the C los ing, as if m ade a t a nd as of t he C los ing, a nd t he st atem e nts made in a ll
cert ificates and other documents de livered t o t he U nderw riter at the C los ing pursuant hereto
sha ll be true, c omp lete a nd corr ect in a ll materia l res pects on t he da te of the C los ing; a nd the
D is tric t s ha ll be in c omp liance w it h eac h of t he a greeme nts made b y it in t his Purchase
Contract;
(b) O blig at ions Perform ed. At the time of t he C los ing, (i) the O fficia l St atem e nt,
this Pu rc has e C ontract, t he Es crow Ag reem e nt, th e Continu ing D isc losure Certificate a nd the
Inde ntur e shall be in fu ll forc e a nd e ffe ct and s ha ll not ha ve b ee n am e nded, m od ified or
supplem e nted except as ma y ha ve be e n agreed to in w rit ing b y the U nderw rit er ; (ii) a ll a ctions
under the A ct w hic h, in the op inion of B ond C ou nse l sha ll be nec essar y in c onnection w ith the
transa ctions conte mp lated hereb y, shall ha ve been duly ta ke n a nd sha ll b e in fu ll for ce a nd
effe ct; a nd (iii) the D is trict s ha ll per form or ha ve performed a ll of t he ir ob ligations requ ired
under or s pecified in the Inde nture this Purc hase Contract, the Es cr ow Agreem e nt, t he
Continu ing D is c losure Cer t ific ate or the O ffic ia l S ta tement to be perform ed at or pr ior to t he
Clos ing;
(c ) Ad verse Ru lings. N o decis ion, ru ling or find ing s ha ll ha ve bee n e nt ered b y
any court or gover nme ntal author it y s inc e the date of this Pur ch as e Contr act (and not re versed
on appea l or otherw ise set as id e), or t o the best know ledge of the D istr ic t, pe nd ing or t hr eate ned
w hich has a ny of the e ffects descr ibed in Sect ion 7(f) here of or contesting in a ny w ay t he
com p lete ness or accuracy of t he O ffic ia l St ate me nt;
(d ) M arket ab ility. B e tw een t he d at e hereof a nd the C losing, the market pr ice or
marketability or the ab ility of the U nderwrit er t o e nforce c ontra cts for the sa le of t he B onds, at
the init ia l offer ing prices of the B o nds s et for t h in the O ffic ia l S tateme nt, sha ll not ha ve been
mater ia lly ad verse ly a ffe cted in t he reasonab le ju dg ment of the U nd erwriter (e vide nc ed b y a
w ritte n not ice t o t he D istr ict term inating the ob ligation of the U nderw r iter t o ac cept d e liver y
of a nd pay for t he Bonds ) b y reas on of a ny of t he follow ing :
(1 ) leg is lat ion e nacted or intr oduced in t he C ongres s or recomme nded for
passage b y t he Pres ide nt of t he U nited States, or a decis ion re nd ered b y a court
estab lis hed und er Artic le III of the Co nst itution of the U nited Sta tes or b y the U nited
States Tax C our t, w ith the purpose or e ffect, d irectl y or ind ire ctly, of caus ing inclusio n
in gr oss inc ome for purp oses of federal income taxat ion of the interest rece ived b y t he
ow ners of the Bonds, or a n ord er, ruling, regu lation (fina l, temp orary or prop osed) or
offic ia l statem e nt issued or made :
(i) b y or on be ha lf of t he U nited Sta tes Treasu r y D epa rtme nt, or
b y or on be ha lf of t he Inter na l Re venu e S er vice, w ith the purpose or e ffec t,
dire ctly or ind ire ctly, of caus ing inc lusion in g r oss inc ome for purp oses of
federal inc om e taxation of t he int erest rece ived b y t he ow ners of t he B onds; or
9
(ii) b y or on beha lf of the S ecur ities and Exch ang e Com m ission, or
any ot her g over nme nta l agency ha ving ju r is d ic t ion over the subject mat ter
thereo f, to t he e ffect that the Bonds, or ob lig ations of the g e neral char acter of
the Bonds , includ ing a ny a nd a ll u nderlying arrangem ents, are not exempt fr om
registr ation u nder the S ecur ities Ac t of 1933, as ame nded;
(2) leg is lation enacted b y the leg is la ture of the S tate of C a lifornia (the
“State”), or a d ec is ion re ndered b y a c ourt of t he S tate, or a ru ling, or d er, or regu la t ion
(fina l or temp orar y) made b y S t ate aut hority, w hic h w ou ld ha ve the e ffec t of c ha ng ing,
dire ctly or ind irect l y, the Sta te tax consequences of interest on ob liga t ions of the
gener a l c har acter of the B onds in the hands of t he hold ers there of;
(3) the form a l dec laration of w ar b y C ongress or a new ma jor e ngagem e nt
in or esca la tion of m ilitar y hos tilit ies b y order of the P reside nt of t he U nit ed Stat es, or
the oc curre nce of a ny ot her declared nationa l em e rgency t ha t interrupts or causes
dis order t o the operation of t he fina nc ia l markets in the U nited States;
(4) the declarat ion of a g en era l b a nking m or ator ium b y fed era l, N ew Y or k
or Ca lifor nia aut horit ies, or t he g eneral s usp ens ion o f tr ad ing b y th e N ew Y ork S toc k
E xchange, a ny nat iona l s ecur it ies exc ha nge, or a ny g over nm e nta l aut hor ity securities
excha nge;
(5 ) the imp os itio n b y the N ew Y or k St oc k Exchang e, ot her nat iona l
securities exc hang e, or a ny g over nme nta l aut hor it y, of a ny mater ia l r estr ictions not
now in forc e w it h r espect t o t he B onds, or ob liga tions of the ge ner a l c haracter of th e
Bonds, or securit ies generally, or the ma ter ia l increa se of a ny suc h restr ic tions now in
force, inc lud ing t hos e re lat ing t o the extens ion of c redit b y, or t he c harge to the net
cap ita l requ ire me nts of, t he U nderwr iter;
(6 ) an order, decree or inju nction of any c ourt of compete nt jur is d iction, or
order, filing, regu lation or offic ia l sta tement b y the S ecur it ies a nd Ex c ha ng e
Comm iss ion, or a ny other g over nm enta l age nc y ha ving jurisd iction o ver t he sub ject
matter thereof, issued or m ad e t o the effect t ha t the iss uance, of fer ing or sa le of
ob lig at ions of t he ge nera l c haracter of t he B onds, or the issua nc e, o ffer ing or sale o f
the B onds , as c onte mp lated hereb y or b y the O ffic ia l S ta temen t, is or w ou ld b e in
violat ion of t he federal securities law s, as amended a nd the n in e ffec t;
(7 ) there sha ll have occurred or a ny not ic e sh a ll ha ve b een g iven o f a ny
inte nded d ow ngrade, su spens io n, w ithdraw al or nega t ive c ha nge in cr ed it w atc h s tatus
b y any na tio nal credit age nc y of the D istr ict’s outstand ing ind ebted nes s;
(8 ) any e ve nt occurr ing, or in formation bec om ing know n w hich, in the
reasonab le judgm e nt of t he U nderw r iter, m a kes untr u e in a ny ma ter ia l ad verse respec t
any stateme nt or inform ation c ont a ined in the O ffic ial Stateme nt, or has t he effect tha t
the O ffic ia l State me nt c onta ins a ny u ntrue state me nt of a m ater ia l fact or om its to state
a mater ial fa ct requ ired t o be stated t here in or ne ces sar y to ma ke t he state me nts mad e
therein, in lig ht of t he c ircum st a nces u nder w hic h the y w ere m ade, not m is lead ing;
10
(9) the susp ension b y the S EC o f trading in the ou tsta nding secur ities of
the D istr ict;
(10) any am e ndme nt s ha ll ha ve been mad e to the feder a l or State
Constitu t ion or ac t ion b y a ny federa l or State c ou rt, leg islat ive bod y, regu lat or y b od y,
or other author ity mater ia ll y ad vers ely a ffecting the tax status of the D istr ict, its
property, inc om e secur ities (or interest there on) or the va lid ity or e nforceab ilit y of t he
le vy of taxes to pay princ ipa l of a nd interest on the B onds; or
(11) the purc hase of a nd pa ym e nt for the B onds b y the U nderwr iter, or the
resale of the B onds b y the U nderwr iter, on t he term s and c ond itions here in pr ovided
sha ll be pro hib ited b y a ny app lic ab le law , governm enta l aut hor ity, b oard, age nc y or
com m iss ion.
(e ) D elivery of D ocum e nts. At or pr ior to the da te of t he Clos ing, t he U nderwr it er
sha ll r ece ive c op ies of the follow ing d ocume nts satisfact or y in form a nd substa nce t hereto:
(1 ) Bond O pinion; D e feasa nce O p inion. (i) An approving op inion of Bond
Cou nse l, as to the valid ity and tax-exempt status of the B onds, da ted the d ate of the
Clos ing, addressed to the D istr ict in subs ta ntia lly t he for m set for t h in t he Pre lim in ar y
O ffic ia l Stateme nt a nd O ffic ia l State m e nt as Appe nd ix C; and (ii) a de feasa nce op in ion
of B ond Cou ns e l, address ed to the D istr ict a nd the U nderw r iter, w ith respect to the
effe ct ive de feas a nce of t he Refund ed Cert ificat es, and inc lud ing there in a n op inion tha t
the Escrow Agreeme nt has bee n du ly author ized a nd delivered b y t he D istr ic t a nd,
assuming d ue aut hor ization, execution a nd de livery b y t he Es crow Ag e nt, is a va lid
and b ind ing agreem e nt of the D istr ict;
(2 ) Re lia nc e Letter. A re liance le tter fr om B ond Cou nse l to the effect that
the U nderwr iter can re ly up on the op inions descr ib ed in S ection 10(e)(1)(i) a nd (ii)
abo ve;
(3) S uppleme nta l Op inion of Bond Cou nsel. A supple menta l op inion of
Bond C ou nse l addr essed to t he D is tr ict a nd the U nderwriter, in form a nd s ubsta nc e
accept ab le t o the U nderwr it er, dated as o f the C los ing, s ubstant ia ll y to the follow ing
effe ct :
(i) the descr ipt ion of the B onds a nd the secur ity for the Bo nds a nd
stateme nts in the O ffic ial Stat em e nt on the cover pa ge thereof a nd u nd er the
captions “IN TRO D U C T IO N ,” “TH E 2015 BO ND S ,” “SECURITY FO R TH E
2015 BO N DS,” and “TAX M A TTERS ,” a nd in Appe nd ix B – “D EF IN IT IO N S
AND S UMM ARY O F TH E IN D EN TU RE” and Ap pend ix C – “PRO P O SED
FO RM OF O PINIO N O F BO N D C OU N SEL,” to t he exte nt they p urp ort t o
summar ize certa in provis ions of the B onds, the Inde ntur e, the C ontin u ing
D is c losure Cer tific ate a nd the form and c onte nt of B ond C ou nsel’s ap proving
op inion w ith respect t o the treatm e nt of interest on the Bonds und er Ca lifor nia
or feder a l law , fa ir l y and accurate l y summar ize the matters purp orted t o b e
summar ized there in; provided t hat B ond Cou ns e l need not expres s any op in ion
w it h respect to a ny fina nc ia l or st atist ica l d ata or forecasts , numbers, c harts,
maps, est imates, projections, assumptions or e xpress ions of op inion,
11
inform ation concerning DT C or its b ook-e ntr y only s ys tem, or informa t ion
cont a ined in Appe nd ices A, D a nd F there to;
(ii) The C ont inu ing D isc losure Cert ificate a nd this Purchase
Contract ha ve ea c h bee n du ly au thor iz ed, execu ted a nd de livered b y t he
D is tric t, a nd assum ing due aut hor iz ation, execut io n a nd de liver y b y all the
part ies thereto, const itu te lega l, va lid and b ind ing a greem e nts of t he D is tr ict
enforc eab le in accorda nce w it h the ir respectiv e term s, except as enforc eme nt
thereo f m a y be lim ited b y ba nkruptcy, ins olve nc y, re orga nization, m ora torium
or other laws re lating to or a ffe cting genera lly the enforc ement of cr edit ors’
rig hts and excep t as such e nforcem e nt m a y be sub ject to the app lication of
equ itable pr inc ip les a nd the exerc ise of jud ic ia l d is cr etion in appropr iate cases
if equ itab le r em ed ies are s ought a nd b y the lim it ations on lega l re medies
aga inst pub lic age nc ies in t he Sta te of Califor nia; and
(iii) the B onds are exempt fr om reg is tration p ursua nt to the
Securit ies Ac t of 1933, as amend ed, a nd the Indentur e is exemp t fr om
qualific ation as a n inde ntur e pursuant to the Tr ust Indentur e Ac t o f 1939, as
amended; and
(4) D isc losure C ou ns e l Assurance. T he le tter of Strad li ng Y occa Car ls on
& Rauth, da ted as of the C los ing a nd addres sed to the D is tric t [and the U nderw riter],
substant ia lly to t he e ffe ct that b ased on suc h c ou nse l’s part ic ipation in c onferences w ith
representatives of the U nder w riter, the D istr ict a nd ot hers, dur ing w hic h confere nces
the c ontents of the O fficia l State me nt a nd re lated m at ters w ere d iscuss ed, a nd in
re lia nc e thereo n a nd on t he re c ords, docum e nts, cert ifica tes a nd op inions d escr ibed
therein, suc h counse l ad vises the D istr ict as a matter of fac t and not op inion, t hat dur ing
the cou rse of its e ngageme nt as Disc los ure C ou ns el no infor mation cam e t o t he
atte ntion of such counse l’s att or ne ys re nder ing lega l s ervic es in c onnection w it h such
representation w hic h cau sed su c h c ou nse l t o b elie ve that the O ffic ia l S ta teme nt as of
its date (ex cept for a ny fina nc ia l or sta tis tic a l da ta or fore casts, numbers, charts,
estim at es , project ions, assumpt ions or expres sions of op inion, information w it h respect
to D T C or its b ook-e ntr y only s ys tem inc luded t herein, or Appe nd ices A, D and F to
the O ffic ia l S tatem e nt, as to w hic h suc h c ou nsel need express no op inion or view )
cont a ined a ny u ntrue s tatem e nt of a mater ia l fa ct or om itted to s tate a ny mater ia l fa ct
necessar y to m a ke the s tateme nts t here in, in lig ht of t he c ircu msta nces u nder w hic h
the y w er e made, not m is lead ing;
12
(5 ) Certific ates . A certificate s ig ned b y appropr iate offic ials of the D istr ict
to t he e ffect that (i) suc h offic ia ls are author iz e d to execute this Pu rc has e C ontra ct, (ii) the
representations, agre em e nts a nd w arra nt ies of the D is tr ict herein are true a nd c orr ect in a ll m a ter ia l
respects as of th e dat e of C los ing, (iii) the D istr ic t has comp lied w ith a ll the terms of the Inde nture, the
E scrow Agreeme nt, t he C ont inu ing D isc losure Certificate a nd this Purchase Contra ct to be comp lied
w it h b y the D istric t prior t o or concurre ntly w it h t he Clos ing, and, as to the D istr ic t, such docu me nts
are in fu ll forc e a nd e ffect, (iv) s uc h D is tr ict offic ia ls ha ve r e viewed the Pre lim inar y O ff ic ia l State ment
and the O ffic ia l Stateme nt, a nd on s uc h bas is c ertifies tha t t he Pre lim inar y O ffic ia l Sta tem e nt as of its
date d id not, and t he O ffic ia l Sta teme nt as of its date a nd a t the C los ing Date d id not a nd d oes not,
cont a in a ny u ntrue statem e nt of a m ateria l fact or om it to s ta te a m ater ia l fact requ ired to b e state d
therein or necessar y to m a ke t he s tat eme nts t here in, in light of the circumst ances in w hich the y w ere
made, n ot m is le ad ing, and t hat t here has bee n no m ater ia l adverse c ha ng e in the financia l cond ition or
affa irs of the D istr ict w hic h w ou ld ma ke it u nr e asonab le for the U nderw riter t o re l y up on the
Prelim inar y O fficia l S tatement or the O ffic ia l S tate ment in c onnec tion w it h t he r esa le of the B onds ,
exc lud ing in each case a ny infor mation c onta ined in t he Pre lim inar y O ffic ia l Sta tement or the Offic ial
Stateme nt re lat ing to D TC or its b ook-e ntry onl y s yst e m, a nd informa tion pr ovided b y t he U nderw riters
conc er ning t he re offering of t he B o nds, (v) the B o nds be ing delivered on the d ate of the C los ing to the
U nderw riter u nder t his Pu rc has e C ontract subs tantia lly c onform t o the d es criptions there of cont a ine d
in t he Inde nture, and (vi) no e ve nt c oncer ning the D istr ict has occu rr ed since the d ate of the O ffic ia l
Stateme nt w hic h has not been d isc los ed therein or in any su pp leme nt thereto, but s hou ld be d isc losed
in or d er to m a ke t he stateme nts in t he O ffic ia l S tate ment in lig ht of t he circu mst a nces in w hich the y
w ere m ad e not m is lead ing ;
(6) G enera l C ou nse l Op inion. A n op inio n of Porter S im on, Truc ke e,
Califor nia, G enera l C ou nsel to the D istr ic t, dated the dat e o f the C los ing a nd addressed to t he
U nderw riter, in form a nd substa nce ac ceptab le to t he U nderw riter, su bstant ially to t he follow ing e ffect:
(i) The D istr ict is a p ub lic u tilit y d istrict du ly org a niz ed a nd
va lid ly ex is ting u nder the cons titut ion a nd the laws of the St ate ;
(ii) This Purc has e C ontra ct, the C ontinu ing D isclosure C ertific ate,
and t he Escrow Agreem ent ha ve bee n d u ly aut hor ized, executed a nd de livered b y t he D istr ict, a nd the
D is tric t has fu ll r ig ht, p ow er a nd author ity to carr y out a nd c onsummate a ll transac t ions contemp lated
b y s uc h d ocum e nts as of the date of the O ffic ial Stateme nt a nd as of the d ate o f C los ing ;
(iii) The r esolu t ion of the D istr ict appr oving a nd au thoriz ing t he
execut ion a nd d e liver y of t his Purc has e C ontr act, the C ont inu ing D is c losu re C ert ificat e, a nd the
E scrow Agr eeme nt, a nd appr oving the O ffic ia l State m ent, have b een du ly ad op ted at mee tings of t he
gover ning b od y of the D is tr ic t, w hic h w ere ca lled a nd he ld pursua nt to law and w ith a ll pub lic notice
requ ired b y law a nd a t w hic h a q u orum w as pres e nt and a ct ing t hr oughou t a nd t he r esolutions are in
fu ll for ce a nd e ffe ct a nd have not bee n m od ified, am ended or resc inded;
(iv) The exe cut ion a nd de liver y of th is P urchase C ontract, t he
Continu ing D is closure Cert ificate, a nd t he Es cr ow A greeme nt, and c omp lia nce w it h t he provis ions o f
such docume nts u nder the c ir cum sta nces c ontemp la ted thereb y, do not a nd w ill not, in a ny r espect
w hich w ill ha ve a mater ia l ad verse impac t on the tra ns actions c ont emp lated b y s uc h docume nts c onflic t
w it h, or c onst itute, or w ith t he g iving of notice or the pass age of time wou ld c onst itute, on the part of
the D is trict a breac h of or d efault u nder, a ny mater ia l agree me nt or ot her instrume nt to w hic h the
D is tric t is a p art y or b y w hic h it is b ou nd (a nd b ased in part on a factu a l cert ificat e of t he Distr ict) or
13
any exis ting law, adm inistrative ru le, regu lation, ord er, decree, judgme nt, licens e or p erm it t o w hic h
the D istr ict is subject (ex clud ing, how e ver, any op inion as t o c omp lia nc e w ith a ny app lic able federa l
securities law s ); or b y w hic h the D istr ict or a ny of its property is b ou nd;
(v) The O ffic ial S ta tement has b een prep ared b y, or on behalf of,
the D istr ict u nder the super vis ion of the D is tr ict’s [________________], and execu ted on its be half b y
author iz ed officers of the D is tr ic t;
(vi) Based on the information made ava ilab le t o them in the c ourse
of the ir e ngag ement as G eneral C ou nse l to t he D is tr ict, but w it hou t ha ving made a ny ind ep e nden t
investigation or ver ificatio n there of, a nd w it hout assuming a ny r espons ib ility for the accura c y,
com p lete ness or fa ir ness thereof, the y be lie ve t ha t the informa tion in t he Offic ia l Sta tem e nt u nder the
captions “TRU CK EE D O N NER P U BLIC U TIL ITY D ISTRIC T,” “THE W A TER SY STEM O F TH E
D IS TRIC T,” “FIN AN C IA L IN FO RM ATION O F TH E D ISTR IC T ” a nd “LITIG AT IO N ” (ex cept for
inform ation s tated e lsew here a nd cr oss-refer e nced there in) d oes not c onta in any u ntru e statement of a
mater ia l fa ct or om it t o state a ny ma ter ia l fa ct r equ ir ed to be s tated t herein or ne cessar y t o ma ke the
stateme nts there in, in lig ht of the c ircumst a nces u nde r w hic h the y w ere made, not m is lead ing at a nd as
of t he d ate of the O ffic ia l Stateme nt and at a nd as of the date of C los ing ;
(vii) N o add itiona l aut horiz at ion, appr ova l, c ons e nt, w a iv er or a ny
ot her a ction b y a ny p erso n, b oard or bod y, pub lic or priva te, not pre vious ly obta ined is requir ed as of
the date of t he C los ing for t he D istr ict to ent er into this Purchas e C ontra ct, the Continu ing D isc losure
Certific ate, a nd the E scr ow Agree m e nt, or to p erfor m its ob liga t ions und er such d ocu me nts; a nd
(viii) N o litig at ion, pr oceed ing, action, su it, or in vest igation (or a ny
basis ther e for) at law or in equ ity be f ore or b y a ny court, g overnme nta l age nc y or b od y, pe nd ing or
threate ned, ag a ins t the D istr ic t c ha lle ng ing t he cre ation, orga niz at ion or ex iste nce of the D is tr ict, or
the valid it y of t he Inde nture, t his Purc has e Contract, the C ontinu ing D isc losure Cert ifica te, and t he
E scrow Agre em e nt, or seeking to restrain or enjoin the pa ym ent of t he princ ipa l of or interest on t he
Bonds or in an y wa y c ontesting or a ffect ing the va lidity of the I ndenture, t his Purch ase Co ntr act, t he
Continu ing D isclosu re C ertificate, a nd t he E scr ow Agreem e nt, or a ny of the tra nsac t ions re ferred t o
therein or contemp lated t her eb y or contesting t he authorit y of the D istr ic t t o enter into or perform its
ob lig at ions u nder a ny of the Inde ntur e, this Purchase Contrac t, t he Co ntinu ing D isc los ure Cert if icate,
and the E scr ow Agre em e nt,, or u nder w h ic h a dete rm ination ad verse to the D istr ict w ou ld hav e a
mater ia l ad verse e ffec t upon t he fina nc ia l c ond it ion or the revenu es of the D istr ic t, or w hic h, in a ny
manner, questions or a ffects t he r ig ht or ab ility of the D istr ic t to e nter into the Inde nture, t his Pu rc hase
Contract, t he C ontinu ing D isc los ure Certific ate, a nd the E scrow Agre ement, or affe cts in a ny manner
the rig ht or ab ilit y of t he D istr ict t o pa y the pr inc ipa l of or int erest on the B o nds.
(7) Trustee Cou nse l O p inion. T he op inion or op inions of cou nse l t o t he
T rus tee, dated the date of t he C los ing, addres sed to the U nderw r iters, t o t he e ffect t hat:
(i) The Trus tee is a nationa l ba nking as soc iat ion, du ly or gan iz ed
and va lid ly ex isting u nder t he laws of the U nited St ates of Amer ica, having fu ll c orp ora te p ow er to
underta ke t he trust created u nder the R esolu tion;
(ii) The Escr ow Agreem e nt has been du ly aut hor iz ed, executed a nd
de livered b y t he Trustee a nd, ass um ing due aut horiz ation, execu t ion a nd de liver y b y t he ot her par ties
theret o, the Escrow Agreem e nt co nstitu tes the va lid and b ind ing ob ligation of t he Tr uste e e nforceab le
14
in acc orda nce w ith its terms, except as e nfor ceme nt t here of ma y be lim ited b y b a nkruptc y, insolve nc y
or other law s affecting t he e nforceme nt of credit ors’ r ights ge nerally a nd b y the app lication of equ itab le
princ ip les, if equ itable rem ed ies are s oug ht;
(iii) The Truste e has duly aut he nticated a nd de livered the B onds
upon the order of the D istr ict;
(iv) The Trus tee’s actio ns in executing and deliver ing t he Escr ow
Agreem e nt are in fu ll c omp lia nce w it h, a nd do not c onflict w it h an y app licab le law or g over nme nt a l
regu lation a nd, to the best o f such c ou ns e l’s know ledg e, a fter reas onab le inqu ir y w it h r espect t hereto,
do n ot conflict w it h or viola te a ny c ontra ct to w hic h the Truste e is a part y or a ny ad m inis tr ative or
jud ic ia l dec is ion b y w hic h the Trustee is b ou nd; a nd
(v) N o c onse nt, approva l, aut hor iz ation or other action b y any
gover nm e nta l or regu la t or y author ity ha ving jur is d iction over t he banking or trust pow ers of the
T rus tee th at has not b een obta ined is or w ill be requ ir e d for the aut he ntication a nd de livery of the B onds
or the c onsum mation b y the Truste e o f its ob liga t ions under the Inde nture or the Es cr ow Agr eeme nt.
(8) D istr ic t Certific ate. A certificate of t he D istr ict, da ted the d ate of t he
Clos ing, s igned on be ha lf of the D is tr ict b y the G e nera l M anag er or ot her du ly au thor iz ed offic er of
the D istr ict to the effe ct tha t:
(i) The repres e ntations , warrant ies a nd cove na nts of t he D is trict
cont a ined in the P urchase C ontra ct are true a nd c orrect in a ll ma ter ia l respects on a nd as of t he date o f
the C los ing as if made on the d ate of t he C los ing and the D istr ic t has c omp lied w ith a ll of t he terms
and co nd itions of the P urchase C ontract requ ired t o be comp lied w it h b y t he D is tr ict a t or pr ior to t he
date of t he c los ing;
(ii) N o event a ffec ting t he D istr ic t has occurred s ince t he d at e of
the Offic ial Stateme nt w hic h h as not been d is c losed there in or in a ny supp le me nt or am e ndment thereto
w hich e ve nt shou ld be d is closed in t he O ffic ia l St ate m en t in ord er to m ake t he statements therein, in
the lig ht of the c ircu m sta nces u nder w hich the y w ere made, not m is le ad ing (except no r eprese ntatio n
is made w ith respect t o informa tion re lating to D TC or D TC’s book-e ntr y s yste m); a nd
(iii) N o e ve nt has occurred a nd is c ontinu ing whic h, with t he
passage of t im e or the g iving of notice, or b oth, wou ld c ons titu te a n e ve nt of defau lt u nder the
Resolut ion or the D is tr ic t D ocu m e nts.
(9) Trustee’s Cert ific ate(s). A certificate or c ertificates, dated the date of
Clos ing, s ig ned b y a du l y aut hor ized offic ia l of t he Trustee satis fac t or y in form a nd su bsta nce to t he
U nderw riter, t o the ef fe ct tha t:
(i) The Trus te e is duly orga niz ed and ex ist ing as a nat iona l
bank ing assoc iation u nder the law s of t he U nited St ates of Am er ica, ha ving the fu ll c orp ora te p ow er
and au thor ity to enter into a nd per form its dut ies u nd er the Indenture and the E scr ow Agre eme nt ;
(ii) The Trustee is du ly author iz ed to e nter into t he Es crow
Agreem e nt a nd has du ly executed and de livere d the Escr ow Agreeme nt, and assu m ing due
15
author iz a tio n a nd execution b y t he other party the reto, the E scr ow Agreeme nt is lega l, va lid a nd
bind ing up on the Trustee, a nd e nforceab le aga ins t t he Trustee in accorda nc e w it h the ir terms ;
(iii) The Truste e has duly aut he nticated the Bonds under the
Inde ntur e and de livered the B onds to or up on the ord er of t he U nderw r it er; a nd
(iiii) N o c onsent, approval, aut hor ization or other a ction b y any
gover nm e nta l or regu la t or y author ity ha ving jur is d iction over t he banking or trust pow ers of the
T rus tee th at has not b een obta ined is or w ill be requ ir e d for the aut he ntication a nd de livery of the B onds
or the c onsumm ation b y the Trustee of its ob ligations under the Inde nture a nd the Es crow Agre eme nt.
(10) Arb itrag e. A nonarb itrag e certificate of the D istr ict in form sat is factor y
to B ond C ou nse l;
(1 1 ) Rat ings. Evide nce sat is fa ct ory to the U nd erw riter (i) tha t t he B onds
ha ve re ceived t he ratings of “___” a nd “__” fr om St andard & P oor’s Ratings Service,
a S tand ard & Poor’s F ina nc ia l Services LLC bus iness (“S&P ”) and M ood y’s Investors
Servic e (or suc h other equ iva lent ratings as s uch rating age ncies m a y g ive), b ased upo n
the issua nce of the Insura nc e Po lic y b y t he Insurer , (ii) that t he Bonds ha ve rece ived
an u nderlying rating of “___” fr om S &P, a nd (iii) t hat a ny s uc h ra tings ha ve not bee n
revo ked or d ow ngraded;
(1 2 ) Resolut ion. A certified c op y of the Res o lution and minu tes of t he
Board of D irec t ors of the D istr ict aut hor iz ing the iss uanc e of t he B onds
(1 3 ) O ffic ia l Stateme nt. A certificat e of the appr opr iate offic ial of t he
D is tric t e vide ncing his or her de term inations res pect ing the P relim inary O f fic ia l
Stateme nt in ac c orda nce w ith t he Ru le ;
(14) Continu ing Disclos ure C ertificate. A n executed cop y of the
Continu ing D isc losure Certificate, subs tant ia ll y in the f orm prese nted in the O ffic ia l
Stateme nt as Appe nd ix E theret o;
(15) Certific ate o f the P aying Agent. A cer tific ate of the Pay ing Ag e nt,
sig ned b y a du ly authoriz ed officer thereof, and in form and subs ta nce s at is factor y to
the U nderw r it er, subs tant ia ll y t o t he e ffe ct t ha t, t o the best of the P a ying Age nt’s
know ledge, no lit iga t ion is pe nd ing or threate ned (e ither in state or fed era l c ourts) (i)
seeking t o res tr a in or e njoin the de liv er y b y t he Pa ying Ag ent of a ny o f the B onds, or
(ii) in a n y w a y c ontesting or a ffecting an y author ity of the Pa ying Ag e nt for the d e liver y
of the B onds or the va lid ity or enfor ceab ilit y of t he Bonds or a ny agreem e nt w it h the
Pa ying Agent;
(16) Certific ate of t he Escr ow Age nt. A certificate o f th e Es cr ow Age nt,
dated the da te of C los ing, s ig ned b y a du ly au thoriz ed officer o f t he Escrow Age nt, a nd
in form and s ubstance s at is fact or y t o the U nderw rite r, to t he e ffec t that (i) the Escr ow
Age nt has a ll nec essar y p ow er a nd au t hor ity t o e nter into a nd p erform its duties und er
the Escrow Agreem e nt; (ii) the Escrow Age nt has duly au thor iz ed, ex ecu ted an d
de livered t he Escr ow Agr eeme nt, and, assum ing d ue author iz ation, exe cut ion a nd
de liver y b y t he D istr ic t, the Es cr ow Agre eme nt c onstitu tes the va lid a nd b ind ing
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agreeme nt of t he Escr ow Age nt e nforceab le aga inst the Escrow Age nt in accord a nce
w it h its ter ms, except as e nforceab ility m a y be s u bject to ba nkruptc y, ins o lvenc y,
reorga nization, mor at or ium or s im ilar law s affec t ing cred itors’ rig hts a nd to the
app licatio n o f equ itab le princ ip les; (iii) the execu tion a nd deliver y of the Escrow
Agreem e nt a nd c omp lia nce w it h t he provis ions thereof ha ve be e n du ly author iz ed b y
a ll neces sary c orpor ate action on the part of the Escrow Ag ent a nd, to the bes t
know ledge of t he Escrow Agent, w ill not conflic t w ith or const itute a breach of or
defau lt u nd er a ny law , ad m inistra tive regu la tion, c ourt decre e, res olution, c harter,
b ylaw s or a ny agreem e nt to w hic h the Escrow Age nt is sub ject or b y w hic h it is b ou nd ;
and (iv) no lit ig ation is pe nd ing or, to t he best know ledge of the Escrow Agent,
threate ned (e ither in sta te or federal c our ts) aga ins t t he Escr ow Age nt in a ny w a y
cont est ing or affec t ing the va lid ity or e nfor ceab ilit y of the B onds or the Escrow
Agreem e nt;
(17) V erificat ion Rep ort. A rep ort a nd op inion of C aus e y D emgen & M oore
P.C. w ith res pect to the suffic ie nc y of t he fu nds he ld under the Escrow Agree m e nt to
refu nd the Re fu nded C ert ifica tes as provided in the E scrow Agr ee me nt.
(18) a cop y of the Insura nce P olicy is sued b y t he Insurer, w hic h p olic y
guarantees the pa yme nt w he n due of t he princ ipa l a nd interest e vide nc ed b y the Insured
Certific ates, as described in the O ffic ia l Stateme nt;
(19) a cop y of t he Reserve Po licy iss ued b y the Reser ve Insurer , w hic h
polic y w ill b e in an a mou nt no less tha n the Reserve Requir ement as of t he C los ing
D ate;
(21) O ther D ocume nts. S uch add it iona l lega l op inions, certificates,
proceed ings, ins trum ents a nd other d ocu me nts as B ond C ou ns e l or th e U nderw r iter
ma y reas onably request t o e vid ence c omp lia nce (i) b y the D is tr ic t w it h leg a l
requ ireme nts, (ii) the truth a nd ac curacy, as of the t ime of C los ing, o f the
representations of the D istr ic t here in c onta ined and of the O ffic ial S ta teme nt, and (iii)
the due per forma nc e or s a t isfaction b y the D istr ict at or prior t o such time of a ll
agreeme nts the n to be per formed a nd a ll co nd itions the n to be satis fied b y t he D istr ic t.
(f) Term ination. N otw it hstand ing a nything to t he c ontr a r y here in c onta ined, if for
any re ason w hats oe ver the B onds sha ll not ha ve been d e liver ed b y t he D istr ic t t o the
U nderw riter as pr ovided in Se ction 6 here in, the n the ob liga tion to purc hase B onds hereu nder
sha ll term ina te a nd be of no further force or effect except with respect to the ob lig ations of the
D is tric t and the U nderw rit er und er S ection 14 her eof.
If t he D istr ict is u nable t o satis fy t he c ond itions to the U nderw r it er’s ob ligat ions c onta ined in
this Purch as e C ontra ct or if the U nd erwr iter’s ob ligat ions s ha ll be term inat ed for an y reas on perm itt ed
b y t his Purchase Contract, this Pu rc hase C ontrac t m a y be ca nce lled b y the U nderw riter at, or at a ny
time pr ior to, the t ime of C los ing. N otice of s uch cancella t ion sha ll b e g ive n t o the D istr ict in w r it ing ,
or b y te lep hone or te legrap h, c onf irm ed in w rit ing . N otw ithsta nd ing a ny pr ovis ion her e in to the
contr ar y, the per form a nce of a ny a nd a ll ob ligations of t he D istr ict her eu nder a nd the p erforma nce o f
any and a ll cond itions c onta ined here in for the be ne fit of the U nd erw r it er may b e w a ived b y the
U nderw riter in w rit ing at its sole d iscretion.
17
1 1 . C ond itions to Obligations of the D istrict. The p erform a nce b y the D istr ic t of its
ob lig at ions is c ond it ioned up on (i) t he per form ance b y t he U nderw r iter of its ob ligations hereu nd er;
and (ii) rece ipt b y the D istr ict a nd t he U nderwr iter o f op inions and c ertificates be ing de livered at t he
Clos ing b y pers ons a nd e ntit ies other tha n the D is tr ic t.
1 2 . Expenses. T o the exte nt that the tra nsactions c onte mp lated b y this Purc has e C ontract
are c onsumma ted, the D istr ict s ha ll p a y (or c ause to b e pa id) c osts of is sua nc e of the B onds fr om
proceeds t hereof, inc lud ing but not lim ited t o t he follow ing : (i) the c ost of t he prep aration a nd
reproduc t ion of the Ind e nture; (ii) the fees a nd d isburseme nts of B ond C ounse l a nd D isc losure C ou ns e l;
(iii) the c ost of the preparat ion, printing and deliver y of t he B onds ; (iv) t he fees for t he b ond rat ings;
(v) the c ost of th e pr inting a nd d istr ibution of t he P relim inar y O ffic ia l Stateme nt and the O ffic ia l
Stateme nt; (vi) the initial fees of t he Pa ying Age nt a nd F isca l Ag e nt; (vii) t he initia l fe es of the Escr ow
Age nt; (viii) t he fe es of t he V er ificat ion Agent ; (ix) expenses for tr avel, lodg ing , a nd su bsist e nce
re lated to ra t ing agenc y vis its a nd ot her me et ings c onnected to the aut hor iz ation, sa le, iss uance a nd
distr ibu tion of the B onds; a nd (x) a ll ot her fees a nd expenses inc ide nt t o the iss uance a nd sa le of t he
Bonds. The D istr ict hereb y d irects the U nderwr iter to w ire, at t he C los ing, a portion of the purchas e
pric e of t he B onds not-to-ex ceed $________ t o T he Bank of N ew Y or k M e llon Trust C omp a ny, N .A.,
as fisca l age nt to t he D istrict, for t he paym e nt of c osts of is suance w it h respect t o the Bo nds. U nde r
no cir cums tances sha ll the c osts of is suance be d eemed part of t he U nderw riter’s c ompe ns a tion.
(b) N otw it hsta nd ing a ny of the for eg oing, the U nd erwr iter s ha ll pa y a ll out-of-
pocke t expe nses of the U nderw r iter, the fe es a nd dis burseme nts of c ou nsel t o t he Underw riter, th e
Califor nia D ebt a nd Investm e nt Ad v is or y C om m iss ion fee a nd other expenses (ex cept thos e expres sly
provided ab ove) w it hout lim ita t ion, ex cept tra vel a nd re lated expe nses in c onnection w it h t he b ond
rat ings.
(c) N otw it hsta nd ing Se ct ion 10(f) hereof, the D is tr ict hereb y agrees, in th e e ven t
the purchase a nd sa le of the B onds does not occu r as contemp lated hereu nder, t o re imburs e the
U nderw riter for a ny c osts descr ibed in S ubsection 12(a)(ix) above t hat ar e attr ibutab le t o D istr ic t
personne l.
1 3 . N otices. A ny notice or other c ommu nication t o be g iven und er this Pu rc hase C o ntra ct (ot her
than the accep ta nce here of as s pec if ied in the first p aragrap h hereof) m a y be g iven b y de liver ing the
same in w r iting if t o t he D istr ict, t o Tru ckee D onner Pu blic U t ilit y D istr ict, 11570 D o nner Pass R oad,
T ruckee, C A 96161, Atte ntion: [_______________]; or if to the U nd erwriter to Bra nd is Ta llma n LLC ,
2 2 B a tt e r y S tr e et , #5 0 0, S a n Fr a nc is c o , C a li fo r n ia 9 4 1 1 1 , Atte ntion: [_____________].
1 4 . P arties in Int e rest; S urviv al of R epresentatio ns and W arranties. Th is Pu rc hase
Contract w he n a ccept ed b y the D is tr ict in w riting a s heretofore sp ec ified sha ll cons titu te t he e ntire
agreeme nt betwee n the D is tric t a nd t he U nd erwriter . T his Purchase C ontrac t is mad e sole ly for the
bene fit of the D istr ict a nd t he U nderw r iter (inc lud ing the s ucc essors or as sig ns of t he U nderw r it er).
N o pers on sha ll acqu ir e or ha ve a ny r ig hts hereu nd er or b y virtu e hereo f. A ll the represe ntat ions,
w arrant ies and agre eme nts of t he D is tr ic t in this P urchase C ontra ct sha ll s urvive regard less of (a) an y
investigation or a ny sta teme nt in respect t here of mad e b y or on beha lf of the U nd erwriter, (b) deliver y
of a nd payme nt b y the Underw r iter for the Bonds he reund er, a nd (c) any ter m ina t ion of t his P urchas e
Contract.
18
1 5 . Executio n in C o unte rparts . T his Pur c has e C ontr act m a y be ex ecuted in se vera l
cou nterparts eac h of w hic h shall b e regarded as an or ig ina l a nd a ll of w hic h sha ll c onst itu te but one
and t he s ame d ocum e nt.
D RAF T
S-1
1 6 . A pp licable L aw. T his Purc has e C ontra ct s hall be interpreted, g over ned and enforc ed
in a cc orda nce w it h the law s of t he State of Ca lifor nia app licab le to c ontra cts made a nd per formed in
such State.
V er y tru ly yours,
B RA ND IS TA LLM AN L LC
B y:
Author iz ed Represe nta tive
T he foregoing is hereb y agre ed to a nd a ccepted as of the d ate first ab ove w r itt en:
T R U C K E E D O N NE R PU B L I C U T IL IT Y
D I STR I C T
By :
Preside nt of the B oard of D irectors
ATTES T :
By :
Secretar y of the B oard of D irect ors
Accep ted at ______________ Ca lifor nia T ime
T his __th d a y of ________, 2015
D RAF T
A-1
A PPEN D I X A
$__________
T R U C K E E D O N N E R PU B L IC UT IL IT Y D IS T R IC T
W A T E R S Y ST E M RE FU ND IN G R E V E NU E B O ND S, S E RI E S 20 15
$_____________ Ser ial B onds
Ma turity
(Novem ber 15)
Pr in cipal
A moun t
Int erest
Ra te
Yield
$_________ _____% T erm Bon ds due Novem ber 15, 20___, Pr ice _____, Y iel d ______%
__________________
(1 ) Y ie ld to call at par on N ove mbe r 15, 20__.
R ed e m p t io n Pr o v isio ns
O ptio nal R ed em ptio n. T he B o nds wit h s ta ted ma tu r iti es on or a fter N ov em b er 1 5, 2 0__ a r e su bj ect
to r edem p tio n p r ior to the ir r es p e cti ve sta te d ma tu r itie s , a s a wh ole or in p a r t on a ny da t e i n t he or d er of
ma tu r it y a s dir ect ed b y th e Dis tr ict in a W r it ten R equ e st pr ovi d ed to the T r u ste e a t lea st 6 0 da ys (or s uch
less er nu mb er of da ys a cc ep ta b le t o t he T r ustee in th e s ol e d is c r etio n of t h e T r u ste e, s uch n otic e f or th e
c onv eni en c e of t he T r ustee) p r ior t o s u c h date a nd b y lot w it hin ea ch ma t ur ity i n int e gr a l mu ltip les of
$5 ,00 0, on or a ft er N ov e mb er 1 5 , 20 __, a t a R edemp tio n P r ice equ a l t o th e princ ip al a m ou nt ther eof plu s
a ccr u ed int er es t th er eon to the da te fix ed f or r edem p t io n, w ith ou t pr em iu m.
M a nd ato ry R ed em p tio n. T he B o n ds wit h st a ted ma tu rit ies o n N ov em b er 1 5, 2 0 __ a r e s u b jec t to
ma n da tor y sin ki ng fu n d r edemp t io n in p ar t (b y lot) on ea c h N ov em b er 1 5 on a nd a fter N ove mb er 1 5, 20 __,
in int egr a l mu ltip les of $5,0 0 0 a t a R e demp t ion P r ic e o f th e p r incip a l a mount t her eof p lus a cc r ued int er est
e vid enc ed a n d r ep r es ent ed th er eb y to th e da t e fix ed for r ed em p tio n, w ith ou t p r em iu m, i n a cc or da nc e w it h
th e f ollo w in g sch edu l e:
A-2
Red em ption D ate
(N ovem ber 15)
Pr in cipal
Am oun t
$
(1 )
(1) Final Maturity.
E x tr ao r di nary R e d em p tio n . T he B o nds a r e s ub ject t o ext r a or dina r y r ed emp t ion p r ior to t heir
r esp ec tive s ta te d ma tur ities, as a wh ol e or in p a rt on a n y da te in th e or der of ma tu r it y a nd wit h in ma tu r ities
a s dir ect ed by t h e D istr ict i n a W r itte n R e qu es t p r o vid ed t o t he T r u ste e a t lea s t 6 0 da ys (or su ch less er
nu mb er of da ys a c c ep ta b le to t he T r ust ee in th e s o le discret io n o f th e T r ust ee, su ch not ic e f or th e
c onv eni en c e of th e T r ustee) p r ior to su ch da te a nd b y lot w it h in ea c h ma t u r ity in int egr a l mu lt ip les o f $5,0 0 0
fr om N et P r oc eeds, up o n t he t er ms a nd c o nd iti o ns of, a nd a s p r ovid ed f or i n, t he In dentu r e, a t a R ed emp t ion
P rice equ a l t o th e p rinc ipa l a m ou nt ther eof plu s a c cr u ed int er est t h er eo n to the da te f ix ed for r edem p t ion,
w ithout pr em iu m.