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07. Official Statement NEW ISSUE—BOOK-ENTRY ONLY INSURED RATING:S&P"AA" UNDERLYING RATING:S&P"A" See the caption"CONCLUDING INFORMATION—Ratings" In the opinion of Best Best & Krieger LLP, Riverside, California, Bond Counsel, under existing laws, regulations, rules and court decisions, the interest on the Bonds is exempt from State of California personal income taxes. Bond Counsel observes that interest on the Bonds is not excluded from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986. Bond Counsel expresses no opinion regarding any other tax consequences related to the ownership or disposition of, or the amount, accrual or receipt of interest on, the Bonds. See "CONCLUDING INFORMATION—Tax Matters" herein. $19,105,000 CITY OF ENCINITAS COMMUNITY FACILITIES DISTRICT NO. 1 (ENCINITAS RANCH PUBLIC IMPROVEMENTS) 2021 TAXABLE SPECIAL TAX REFUNDING BONDS Dated:Date of Issuance Due:September 1,as shown below Issuance of the City of Encinitas Community Facilities District No.1(Encinitas Ranch Public Improvements)2021 Taxable Special Tax Refunding Bonds(the"Bonds"or"2021 Bonds")is authorized pursuant to the Mello-Roos Community Facilities Act of 1982,as amended(Sections 53311 et seq.of the California Government Code),and a Fiscal Agent Agreement,dated as of August 1,2021,by and between the City of Encinitas,for and on behalf of the City of Encinitas Community Facilities District No. 1 (Encinitas Ranch Public Improvements)(the"District"),and U.S.Bank National Association,as Fiscal Agent(the"Fiscal Agent"). The 2021 Bonds are payable from and secured by a pledge of certain Special Tax Revenues(as defined herein)and certain other funds held by the Fiscal Agent. The 2021 Bonds are being issued(i)to refund on an advance and taxable basis the outstanding City of Encinitas Community Facilities District No. 1(Encinitas Ranch Public Improvements),2012 Special Tax Refunding Bonds(the"Prior Bonds"),(h)fund a reserve fund,and(iii)pay costs of issuance relating to the 2021 Bonds including the premium of a bond insurance policy. The 2021 Bonds are subject to mandatory redemption as described herein. Interest on the 2021 Bonds is payable on March 1 and September 1 of each year,commencing March 1,2022. The 2021 Bonds are being issued in fully registered book-entry form,initially registered in the name of Cede&Co.,as nominee of The Depository Trust Company,New York, New York("DTC"). Beneficial owners of the 2021 Bonds will not receive physical certificates representing their interest in the 2021 Bonds purchased,but will receive a credit balance on the books of the nominees of such beneficial owners. Payments of principal of and interest on the 2021 Bonds will be paid by the Fiscal Agent to DTC for subsequent disbursement to DTC Participants who will remit such payments to the beneficial owners of the 2021 Bonds. See"THE BONDS-Book-Entry System" herein. NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE CITY OF ENCINITAS (THE "CITY"), THE COUNTY OF SAN DIEGO(THE"COUNTY"),THE STATE OF CALIFORNIA(THE"STATE")OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE BONDS.EXCEPT FOR THE SPECIAL TAXREVENUES, NO OTHER TAXES ARE PLEDGED TO THE PAYMENT OF THE BONDS. THE BONDS ARE NOT GENERAL OR SPECIAL OBLIGATIONS OF THE CITY NOR GENERAL OBLIGATIONS OF THE DISTRICT,BUT ARE LIMITED OBLIGATIONS OF THE CITY PAYABLE SOLELY FROM SPECIAL TAX REVENUES AND CERTAIN AMOUNTS DEPOSITED BY THE CITY IN THE BOND FUND,SPECIAL TAX FUND AND RESERVE FUND AS MORE FULLY DESCRIBED HEREIN. The scheduled payment of principal of and interest on the 2021 Bonds maturing September 1, 2023, through and including September 1,2030(the"Insured Bonds"),when due will be guaranteed under an insurance policy to be issued concurrently with the delivery of the 2021 Bonds by the Assured Guaranty Municipal Corp. ASSURED GUARANTY® MUNICIPAL Maturity Schedule See Inside Cover See section of this Official Statement entitled"SPECIAL RISK FACTORS"for a discussion of special risk factors that should be considered,in addition to the other matters set forth herein,in evaluating the investment quality of the 2021 Bonds. This cover page contains certain information for quick reference only. It is not a summary of this issue. Investors must read the entire Official Statement to obtain information essential to the making of an informed investment decision with respect to the 2021 Bonds. The 2021 Bonds are being offered when,as and if issued and accepted by the Underwriter subject to the approval as to their legality by Best Best&Krieger LLP,Riverside,California,Bond Counsel. Certain legal matters will be passed upon for the City by Best Best&Krieger LLP,Riverside,California,as Disclosure Counsel. Kutak Rock,LLP,Irvine,California,is acting as Underwriter's Counsel. It is expected that the 2021 Bonds will be available for delivery on or about August 4,2021. HilltopSecuribes A Hil I Lop Hold ings Compan V. Dated:July 15,2021 $19,105,000 CITY OF ENCINITAS COMMUNITY FACILITIES DISTRICT NO. 1 (ENCINITAS RANCH PUBLIC IMPROVEMENTS) 2021 TAXABLE SPECIAL TAX REFUNDING BONDS Maturity Date (September 1) Principal Amount Interest Rate Yield Price CUSIP†© 0.00 #0*.13*....,20.$.,20.$/..,...$070306>?4 0.01 0*.43*....,25..,25./..,...070306>@2 0.02 0*.5.*....,55..,55./..,...070306>A/ 0.03 0*//.*.../,.3./,.3./..,...070306>B7 0.04 0*/.3*.../,1../,1../..,...070306>C5 0.05 0*/03*.../,23./,23./..,...070306>E1 0.06 0*/33*.../,43./,43./..,...070306>F. 0.07 0*/73*.../,57./,57./..,...070306>G6 0.1.0*023*.../,72./,72./..,...070306>H4 s >PNDK®ak Y j]_akl]j]\ ljY\]eYjc g^ l‘] <e]ja[Yf =Yfc]jk <kkg[aYlagf, >ghqja_‘lu /777+0.0/ <e]ja[Yf =Yfc]jk <kkg[aYlagf, <dd ja_‘lk j]k]jn]\, >PNDK®* \YlY ‘]j]af ak hjgna\]\ Zq >PNDK BdgZYd N]jna[]k* eYfY_]\ Zq NlYf\Yj\ % Kggj{k AafYf[aYd N]jna[]k GG> gf Z]‘Yd^ g^ l‘] <e]ja[Yf =Yfc]jk <kkg[aYlagf, O‘ak \YlY ak fgl afl]f\]\ lg [j]Yl] Y \YlYZYk] Yf\ \g]k fgl k]jn] af Yfq oYq Yk Y kmZklalml] ^gj >PNDK BdgZYd N]jna[]k, >PNDKt fmeZ]jk Yj] hjgna\]\ ^gj [gfn]fa]f[] g^ j]^]j]f[] gfdq, I]al‘]j l‘] <_]f[q fgj l‘] Pf\]jojal]j lYc]k Yfq j]khgfkaZadalq ^gj l‘] Y[[mjY[q g^ km[‘ fmeZ]jk, CITY OF ENCINITAS CITY COUNCIL >Yl‘]jaf] N, =dYc]kh]Yj* HYqgj Ogfq FjYfr* ?]hmlq HYqgj F]dda] Cafr]* >gmf[ad H]eZ]j Egq Gqf\]k* >gmf[ad H]eZ]j Eg] Hgk[Y* >gmf[ad H]eZ]j CITY STAFF KYe]dY <flad* >alq HYfY_]j O]j]kY N, H[=jgge]* Oj]Ykmj]j-?aj][lgj g^ AafYf[] FYl‘q Cgddqogg\* >alq >d]jc G]kda] ?]nYf]q* Dfl]jae >alq <llgjf]q PROFESSIONAL SERVICES BOND COUNSEL/DISCLOSURE COUNSEL =]kl =]kl % Fja]_]j GGK Man]jka\]* >Yda^gjfaY MUNICIPAL ADVISOR TO THE CITY Aa]d\eYf* MgdYhh % <kkg[aYl]k* Df[, Djnaf]* >Yda^gjfaY SPECIAL TAX ADMINISTRATOR FISCAL AGENT/ESCROW AGENT N[gll <kkg[aYl]k P,N, =Yfc IYlagfYd <kkg[aYlagf Man]jka\]* >Yda^gjfaY Ggk <f_]d]k* >Yda^gjfaY VERIFICATION AGENT >Ymk]q ?]e_]f % Hggj] ?]fn]j* >gdgjY\g VOCDN K<B@ DIO@IODJI<GGT G@AO =G<IFW TABLE OF CONTENTS DIOMJ?P>ODJI,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,/ B]f]jYd,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,/ O‘] ?aklja[l ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,/ <hhda[Ylagf g^ Kjg[]]\k,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,/ Kjgh]jlq QYdm] ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,0 Dkkmaf_ <ml‘gjalq,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,0 Ngmj[]k g^ KYqe]fl ^gj l‘] 0.0/ =gf\k,,,,,,,,,,,,,,,,,,1 Gaeal]\ GaYZadalq,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,1 =gf\ DfkmjYf[] Kgda[q ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,1 ?]k[jahlagf g^ l‘] =gf\k,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,2 OYp HYll]jk,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,2 Kjg^]kkagfYdk Dfngdn]\ af l‘] J^^]jaf_,,,,,,,,,,,,,,,,,,,,,2 Nh][aYd Makck,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,2 >gflafmaf_ ?ak[dgkmj],,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,3 Jl‘]j Df^gjeYlagf,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,3 M@API?DIB KG<I ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,3 Ngmj[]k Yf\ Pk]k g^ Amf\k,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,4 OC@ =JI?N,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,5 M]\]ehlagf,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,5 OjYfk^]j Yf\ @p[‘Yf_] g^ =gf\k ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,6 O‘] Aak[Yd <_]fl,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,6 KYjalq =gf\k,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,6 =JI? DINPM@,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,/. =gf\ DfkmjYf[] Kgda[q ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,/. <kkmj]\ BmYjYflq Hmfa[ahYd >gjh,,,,,,,,,,,,,,,,,,,,,,,,,/. ?@=O N@MQD>@ N>C@?PG@,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,/0 N@>PMDOT AJM OC@ =JI?N ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,/1 B]f]jYd,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,/1 Nh][aYd OYp M]n]fm]k,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,/1 Nh][aYd OYp Amf\,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,/2 M]k]jn] Amf\,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,/2 K]jeall]\ Dfn]kle]flk,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,/3 >gn]fYfl ^gj Nmh]jagj >gmjl Agj][dgkmj],,,,,,,,,,,,,,/3 Gaeal]\ GaYZadalq,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,/4 Kjgh]jlq <kk]kk]\ QYdm]k ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,/4 ?aj][l Yf\ Jn]jdYhhaf_ ?]Zl ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,/6 @klaeYl]\ OglYd QYdmYlagf g^ <dd Kjgh]jlq Ral‘af l‘] ?aklja[l,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,/7 @I>DIDO<N MC ?@Q@GJKH@IO,,,,,,,,,,,,,,,,,,,,,01 B]f]jYd,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,01 @f[afalYk MYf[‘ ?]n]dghe]fl,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,01 ?]n]dghe]fl <_j]]e]fl,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,01 O‘] Bgd^ >gmjk],,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,02 OC@ >JHHPIDOT A<>DGDOD@N ?DNOMD>O <I? NK@>D<G O<S M@Q@IP@N,,,,,,,,,,,,,,,,03 O‘] ?aklja[l ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,03 O‘] KmZda[ Dehjgn]e]flk ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,03 MYl] Yf\ H]l‘g\ g^ <hhgjlagfe]fl g^ Nh][aYd OYp,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,03 Caklgja[Yd G]na]k Yf\ OYp ?]dafim]f[a]k,,,,,,,,,,,,,,,06 Nh][aYd OYphYq]jk ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,06 NK@>D<G MDNF A<>OJMN,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,1/ Makck g^ M]Yd @klYl] N][mj]\ Dfn]kle]flk B]f]jYddq,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,1/ Gaeal]\ JZda_Ylagfk,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,1/ Dfkm^^a[a]f[q g^ Nh][aYd OYp M]n]fm]k ,,,,,,,,,,,,,,,,,1/ Kjgh]jlq QYdm]k,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,10 M]\m[lagf g^ <kk]kk]\ QYdm]k,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,10 ?]hd]lagf g^ M]k]jn] Amf\,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,11 Dfkm^^a[a]f[q g^ Agj][dgkmj] NYd] Kjg[]]\k,,,,,,,,,,,11 KYjalq OYp]k Yf\ Nh][aYd <kk]kke]flk,,,,,,,,,,,,,,,,,,12 Nh][aYd OYp ?]dafim]f[a]k ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,12 ?ak[dgkmj]k lg Amlmj] Kmj[‘Yk]jk g^ GYf\,,,,,,,,,,,,,12 KYqe]fl g^ Nh][aYd OYp]k ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,13 =Yfcjmhl[q,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,13 KYqe]flk Zq A?D> Yf\ Jl‘]j A]\]jYd <_]f[a]k,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,14 B]gdg_a[* Oghg_jYh‘a[ Yf\ >daeYla[ >gf\alagfk,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,15 CYrYj\gmk HYl]jaYdk,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,15 >gfklalmlagfYd <e]f\e]fl,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,16 =gf\ DfkmjYf[],,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,16 Amlmj] DfalaYlan]k,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,17 >qZ]jk][mjalq,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,17 >JQD?+/7 KYf\]ea[ ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,17 Gaeal]\ N][gf\Yjq HYjc]l,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,2. GaealYlagfk gf M]e]\a]k,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,2. Kj]hYqe]fl Makc,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,2/ >JI>GP?DIB DIAJMH<ODJI,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,20 Pf\]jojalaf_ ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,20 G]_Yd Jhafagfk,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,20 >gflafmaf_ ?ak[dgkmj],,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,20 OYp HYll]jk,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,20 AafYf[aYd Dfl]j]klk,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,24 Ig Gala_Ylagf ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,24 MYlaf_k,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,24 Q]ja^a[Ylagf,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,24 Hak[]ddYf]gmk,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,25 <KK@I?DS < + M<O@ <I? H@OCJ? JA <KKJMODJIH@IO JA NK@>D<G O<S,,,,,,,,<+/ <KK@I?DS = + AJMH JA >JIODIPDIB ?DN>GJNPM@ <BM@@H@IO ,,,,,,,,,,,,,,,,,,,,,,,=+/ <KK@I?DS > + >DOT JA @I>DIDO<N,,,,,,,,,,,,,,,,,,>+/ <KK@I?DS ? + NPHH<MT JA ADN><G <B@IO <BM@@H@IO ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,?+/ <KK@I?DS @ + AJMH JA =JI? >JPIN@G{N JKDIDJI,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, @+/ <KK@I?DS A + =JJF+@IOMT JIGT NTNO@H,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,A+/ <KK@I?DS B + NK@>DH@I HPID>DK<G =JI? DINPM@ KJGD>T,,,,,,,,,,,,,,,,,,,,,,,B+/ DI >JII@>ODJI RDOC OC@ JAA@MDIB JA OC@ =JI?N* OC@ PI?@MRMDO@M H<T JQ@M<GGJO JM @AA@>O OM<IN<>ODJIN RCD>C NO<=DGDU@ JM H<DIO<DI OC@ H<MF@O KMD>@ JA OC@ =JI?N <O < G@Q@G <=JQ@ OC<ORCD>C HDBCOJOC@MRDN@KM@Q<DG DI OC@JK@I H<MF@O, NP>C NO<=DGDUDIB* DA>JHH@I>@?* H<T =@ ?DN>JIODIP@? <O <IT ODH@, OC@ PI?@MRMDO@M H<T JAA@M <I? N@GG OC@ =JI?N OJ >@MO<DI ?@<G@MN <I? ?@<G@M =<IFN <I? =<IFN <>ODIB <N <B@ION <O KMD>@N GJR@M OC JAA@MDIB KMD>@N NO<O@? JI OC@ DIND?@ >JQ@M K<B@ C@M@JA <I? N<D? 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"#! !" !" &/<8=0/2 -/9 ’735: &:?9>@ -/9 ’735: -/9 */<1:= (91797>/= .7=>/ ,13/9=723 -:8/9/ %3/16 ’38 */< (=1:9272: -;63<3 :4 )948?3913 *;52.27-4 %6;5/-8= )800<-=9 *-368 ,6-/9 ! ! #$ #$ #$ !" ! ! ! !#$" *2409 !(-. *’ ")&()(-%, #*&%-(*) $%+ VOCDN K<B@ DIO@IODJI<GGT G@AO =G<IFW / $19,105,000 CITY OF ENCINITAS COMMUNITY FACILITIES DISTRICT NO. 1 (ENCINITAS RANCH PUBLIC IMPROVEMENTS) 2021 TAXABLE SPECIAL TAX REFUNDING BONDS INTRODUCTION This introduction is not a summary of this Official Statement. It is only a brief description of and guide to, and is qualified by, more complete and detailed information contained in this entire Official Statement, including the cover page and appendices hereto, and the documents summarized or otherwise described herein. A full review should be made of this entire Official Statement and such documents prior to making an investment in the 2021 Bonds. The sale and delivery of the 2021 Bonds to potential investors is made only by means of the entire Official Statement. General O‘ak J^^a[aYd NlYl]e]fl* af[dm\af_ l‘] [gn]j hY_] Yf\ <hh]f\a[]k ‘]j]lg* ak hjgna\]\ lg ^mjfak‘ af^gjeYlagf af [gff][lagf oal‘ l‘] akkmYf[] Yf\ kYd] Zq l‘] >alq g^ @f[afalYk >geemfalq AY[adala]k ?aklja[l Ig, / ’@f[afalYk MYf[‘ KmZda[ Dehjgn]e]flk( ’l‘] y?aklja[lz( g^ #/7*/.3*... 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Kjagj =gf\ Amf\k 2*616*450,6/ OglYd Ngmj[]k #01*721*450,6/ Uses of Funds M]k]jn] Amf\’/(#/*51/*33.,/1 M]^mf\af_ Amf\’0(0/*650*416,/5 >gkl g^ DkkmYf[] Amf\’1(117*262,3/ OglYd Pk]k #01*721*450,6/ ’/(<f Yegmfl ]imYd lg l‘] M]k]jn] M]imaj]e]fl \]hgkal]\ af l‘] M]k]jn] Amf\, N]]* yN@>PMDOT AJM OC@ =JI?N w M]k]jn] Amf\*z ‘]j]af, @Yjfaf_k gf Yegmflk af l‘] M]k]jn] Amf\* kg dgf_ Yk l‘] ZYdYf[] af l‘] M]k]jn] Amf\ ak Yl d]Ykl ]imYd lg l‘] M]k]jn] M]imaj]e]fl k‘Ydd Z] \]hgkal]\ af l‘] =gf\ Amf\, ’0(<egmflk af l‘] M]^mf\af_ Amf\ oadd Z] mk]\ lg \]^]Yk] Yf\ j]\]]e l‘] Kjagj =gf\k, ’1(Df[dm\]k ^]]k g^ =gf\ >gmfk]d Yf\ ?ak[dgkmj] >gmfk]d* jYlaf_ Y_]f[q ^]]k* Hmfa[ahYd <\nakgj* Nh][aYd OYp <\eafakljYlgj ^]]k* >alq klY^^ lae]* Aak[Yd <_]fl* @k[jgo <_]fl* Pf\]jojal]j \ak[gmfl* hjaflaf_ [gklk* hj]eame ^gj l‘] emfa[ahYd Zgf\ afkmjYf[] Yf\ Q]ja^a[Ylagf <_]fl ^]]k, 5 THE BONDS O‘] 0.0/ =gf\k oadd Z] akkm]\ af l‘] Y__j]_Yl] hjaf[ahYd Yegmfl* oadd Z]Yj afl]j]kl ^jge l‘] >dgkaf_ ?Yl] Yl l‘] jYl]k* Yf\ oadd 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HYj[‘ / Yf\ N]hl]eZ]j / g^ ]Y[‘ q]Yj ’]Y[‘* Yf yDfl]j]kl KYqe]fl ?Yl]z(* [gee]f[af_ HYj[‘ /* 0.00* Dfl]j]kl gf l‘] 0.0/ =gf\k k‘Ydd Z] [Yd[mdYl]\ gf l‘] ZYkak g^ Y 14.+\Yq q]Yj [gehjak]\ g^ lo]dn] 1.+\Yq egfl‘k, @Y[‘ =gf\ k‘Ydd Z]Yj afl]j]kl ^jge l‘] Dfl]j]kl KYqe]fl ?Yl] f]pl hj][]\af_ l‘] \Yl] g^ Yml‘]fla[Ylagf l‘]j]g^* mfd]kk ’a( al ak Yml‘]fla[Yl]\ gf Yf Dfl]j]kl KYqe]fl ?Yl]* af o‘a[‘ ]n]fl al k‘Ydd Z]Yj afl]j]kl ^jge km[‘ \Yl] g^ Yml‘]fla[Ylagf* gj ’aa( al ak Yml‘]fla[Yl]\ hjagj lg Yf Dfl]j]kl KYqe]fl ?Yl] Yf\ Y^l]j l‘] [dgk] g^ Zmkaf]kk gf l‘] M][gj\?Yl]hj][]\af_km[‘Dfl]j]klKYqe]fl?Yl]*afo‘a[‘]n]flalk‘YddZ]Yjafl]j]kl^jgekm[‘Dfl]j]klKYqe]fl ?Yl]* gj ’aaa( al ak Yml‘]fla[Yl]\ hjagj lg l‘] M][gj\ ?Yl] hj][]\af_ l‘] ^ajkl Dfl]j]kl KYqe]fl ?Yl]* af o‘a[‘ ]n]fl al k‘Ydd Z]Yj afl]j]kl ^jge l‘] >dgkaf_ ?Yl]9 hjgna\]\* ‘go]n]j* l‘Yl a^* Yk g^ l‘] \Yl] g^ Yml‘]fla[Ylagf g^ Yfq =gf\* afl]j]kl l‘]j]gf ak af \]^Ymdl* km[‘ =gf\ oadd Z]Yj afl]j]kl ^jge l‘] Dfl]j]kl KYqe]fl ?Yl] lg o‘a[‘ afl]j]kl ‘Yk hj]nagmkdq Z]]f hYa\ gj eY\] YnYadYZd] ^gj hYqe]fl, yM][gj\ ?Yl]z e]Yfk l‘] ^a^l]]fl‘ \Yq g^ l‘] egfl‘ f]pl hj][]\af_ l‘] egfl‘ g^ l‘] Yhhda[YZd] Dfl]j]kl KYqe]fl ?Yl]* o‘]l‘]j gj fgl km[‘ \Yq ak Y =mkaf]kk ?Yq, Redemption Optional Redemption, O‘] 0.0/ =gf\k Yj] fgl kmZb][l lg ghlagfYd j]\]ehlagf hjagj lg eYlmjalq Zq l‘] >alq, Mandatory Redemption from Special Tax Prepayments or Other Revenues, O‘] 0.0/ =gf\k Yj] kmZb][l lg eYf\Ylgjq j]\]ehlagf hjagj lg eYlmjalq ^jge ’a( hj]hYqe]flk g^ Nh][aYd OYp]k gj ’aa( Jl‘]j M]n]fm]k \]hgkal]\ af l‘] Nh][aYd OYp Kj]hYqe]flk <[[gmfl af Yf Yegmfl ]p[]]\af_ l‘] k[‘]\md]\ YffmYd hYqe]fl g^ Jl‘]j M]n]fm]k ]imYd lg gj _j]Yl]j l‘Yf #3.*... gf Yfq Dfl]j]kl KYqe]fl ?Yl] [gee]f[af_ HYj[‘ /* 0.00* af o‘gd] gj af hYjl* Yegf_ eYlmjala]k af Y eYff]j \]l]jeaf]\ Zq l‘] >alq* Yl Y j]\]ehlagf hja[] g^ /./$*g^ l‘] hjaf[ahYd Yegmfl lg Z] j]\]]e]\* lg_]l‘]j oal‘ Y[[jm]\ afl]j]kl lg l‘] \Yl] ^ap]\ ^gj j]\]ehlagf, Selection of Bonds for Redemption, D^ d]kk 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<_]fl emkl Ydkg _an] fgla[] g^ j]\]ehlagf lg ]Y[‘ g^ []jlYaf N][mjala]k ?]hgkalgja]k kh][a^a]\ af l‘] Aak[Yd <_]fl <_j]]e]fl, O‘] fgla[] g^ j]\]ehlagf k‘Ydd klYl] l‘] j]\]ehlagf \Yl]* l‘] j]\]ehlagf hdY[]* l‘] j]\]ehlagf hja[] Yf\ \]ka_fYl] l‘] >PNDK fmeZ]jk* Zgf\ fmeZ]jk Yf\ l‘] eYlmjalq gj eYlmjala]k g^ l‘] 0.0/ =gf\k lg Z] j]\]]e]\, O‘] Y[lmYd j][]ahl Zq Yfq =gf\gof]j g^ km[‘ fgla[] g^ j]\]ehlagf k‘Ydd fgl Z] Y [gf\alagf hj][]\]fl lg j]\]ehlagf* Yf\ f]al‘]j l‘] ^Yadmj] lg j][]an] km[‘ fgla[] fgj Yfq \]^][l l‘]j]af k‘Ydd Y^^][l l‘] nYda\alq g^ l‘] hjg[]]\af_k ^gj j]\]ehlagf gj l‘] []kkYlagf g^ afl]j]kl gf l‘] j]\]ehlagf \Yl], Effect of Notice of Redemption, Ajge Yf\ Y^l]j l‘] \Yl] ^ap]\ ^gj j]\]ehlagf* a^ ^mf\k YnYadYZd] ^gj l‘] hYqe]fl g^ l‘] hjaf[ahYd Yf\ afl]j]kl ’Yf\ hj]eame* a^ Yfq( gf l‘] 0.0/ =gf\k kg [Ydd]\ ^gj j]\]ehlagf ‘Yn] Z]]f \mdq hjgna\]\* km[‘ =gf\k kg [Ydd]\ oadd []Yk] lg Z] ]flald]\ lg Yfq Z]f]^al mf\]j l‘] Aak[Yd <_]fl <_j]]e]fl gl‘]j l‘Yf l‘] ja_‘l lg j][]an] hYqe]fl g^ l‘] j]\]ehlagf hja[]* Yf\ fg afl]j]kl oadd Y[[jm] l‘]j]gf ^jge Yf\ Y^l]j l‘] j]\]ehlagf \Yl] kh][a^a]\ af km[‘ fgla[], Transfer and Exchange of Bonds <fq =gf\ eYq Z] ljYfk^]jj]\ mhgf l‘] j]_akljYlagf Zggck Zq l‘] Aak[Yd <_]fl mhgf kmjj]f\]j g^ km[‘ =gf\ ^gj [Yf[]ddYlagf* lg_]l‘]j oal‘ Y ojall]f afkljme]fl g^ ljYfk^]j Yhhjgn]\ Zq l‘] Aak[Yd <_]fl, O‘] Aak[Yd <_]fl k‘Ydd [gdd][l ^jge l‘] Jof]j j]im]klaf_ km[‘ ljYfk^]j Yfq lYp gj gl‘]j _gn]jfe]flYd [‘Yj_] j]imaj]\ lg Z] hYa\ oal‘ j]kh][l lg km[‘ ljYfk^]j, < f]o =gf\ gj =gf\k g^ dac] Y__j]_Yl] hjaf[ahYd Yegmfl k‘Ydd Z] \]dan]j]\ af ]p[‘Yf_]^gjYfq=gf\gj =gf\k l‘mkkmjj]f\]j]\, O‘]Aak[Yd<_]fl eYq\][daf]lgeYc]km[‘ljYfk^]jk’a( ^a^l]]f \Yqk hjagj lg Yfq \Yl] ]klYZdak‘]\ ^gj k]d][lagf g^ =gf\k ^gj j]\]ehlagf gj ’aa( oal‘ j]kh][l lg Yfq =gf\ o‘a[‘ ‘Yk Z]]f k]d][l]\ ^gj j]\]ehlagf gj ’aaa( Z]lo]]f l‘] M][gj\ ?Yl] Yf\ l‘] f]pl km[[]]\af_ Dfl]j]kl KYqe]fl ?Yl], The Fiscal Agent P,N, =Yfc IYlagfYd <kkg[aYlagf* ‘Yk Z]]f Yhhgafl]\ Yk l‘] Aak[Yd <_]fl ^gj l‘] 0.0/ =gf\k mf\]j l‘] Aak[Yd <_]fl <_j]]e]fl, N]] y<KK@I?DS ? + NmeeYjq g^ Aak[Yd <_]fl <_j]]e]flz ‘]j]lg ^gj Y ^mjl‘]j \]k[jahlagf g^ l‘] ja_‘lk Yf\ gZda_Ylagfk g^ l‘] Aak[Yd <_]fl mf\]j l‘] Aak[Yd <_]fl <_j]]e]fl, Parity Bonds O‘]>alq* Yl Yfqlae] Y^l]j l‘]akkmYf[]Yf\ \]dan]jqg^l‘]0.0/=gf\kmf\]j l‘] Aak[Yd <_]fl <_j]]e]fl* eYq akkm] Y\\alagfYd Zgf\k ’l‘] yKYjalq =gf\kz( hYqYZd] ^jge l‘] Nh][aYd OYp M]n]fm]k Yf\ k][mj]\ mf\]j l‘] Aak[Yd <_]fl <_j]]e]fl gf Y hYjalq oal‘ l‘] 0.0/ =gf\k kgd]dq ^gj l‘] hmjhgk] g^ j]^mf\af_ Y hgjlagf g^ l‘] 0.0/ 7 =gf\k Yf\ kmZb][l lg l‘] ^gddgoaf_ kh][a^a[ [gf\alagfk*o‘a[‘ Yj] [gf\alagfk hj][]\]fl lg l‘] akkmYf[] g^ Yfq km[‘ KYjalq =gf\k8 Current Compliance, O‘] >alq ak af [gehdaYf[] gf l‘] \Yl] g^ akkmYf[] g^ l‘] KYjalq =gf\k oal‘ Ydd [gn]fYflk k]l ^gjl‘ af l‘] Aak[Yd <_]fl <_j]]e]fl Yf\ Yfq kmhhd]e]fl l‘]j]lg, Payment Dates, Dfl]j]klgfkm[‘KYjalq=gf\kk‘YddZ]hYqYZd]gfHYj[‘/Yf\N]hl]eZ]j/*Yf\hjaf[ahYd l‘]j]g^ k‘Ydd Z] hYqYZd] gf N]hl]eZ]j / af Yfq q]Yj af o‘a[‘ hjaf[ahYd ak hYqYZd] ’hjgna\]\ l‘Yl l‘]j] k‘Ydd Z] fg j]imaj]e]fl l‘Yl Yfq KYjalq =gf\k hYq afl]j]kl gf Y [mjj]fl ZYkak(, Funds and Accounts; Reserve Fund Deposit, O‘] Nmhhd]e]flYd <_j]]e]fl hjgna\af_ ^gj akkmYf[] g^ l‘] KYjalq =gf\k k‘Ydd hjgna\] ^gj Y \]hgkal lg l‘] M]k]jn] Amf\ af Yf Yegmfl f][]kkYjq km[‘ l‘Yl l‘] Yegmfl \]hgkal]\ l‘]j]af k‘Ydd ]imYd l‘] M]k]jn] M]imaj]e]fl ^gddgoaf_ akkmYf[] g^ km[‘ KYjalq =gf\k, Use of Funds, O‘] f]l hjg[]]\k g^ km[‘ KYjalq =gf\k k‘Ydd Z] mk]\ kgd]dq lg j]^mf\ Ydd gj Y hgjlagf g^ l‘] 0.0/ =gf\k* l‘] \]Zl k]jna[] hYqYZd] af ]Y[‘ =gf\ T]Yj l‘Yl km[‘ KYjalq =gf\k Yj] gmlklYf\af_ k‘Ydd Z] d]kk l‘Yf l‘] \]Zl k]jna[] \m] gf l‘] 0.0/ =gf\k Z]af_ j]^mf\]\ oal‘ l‘] f]l hjg[]]\k g^ km[‘ KYjalq =gf\k* Yf\ l‘] ^afYd eYlmjalq g^ km[‘ KYjalq =gf\k k‘Ydd fgl Z] dYl]j l‘Yf l‘] ^afYd eYlmjalq g^ l‘] 0.0/ =gf\k lg Z] j]^mf\]\ oal‘ l‘] f]l hjg[]]\k g^ l‘] KYjalq =gf\k, Officer’s Certificate, O‘] >alq k‘Ydd ‘Yn] []jla^a]\ l‘] ]pakl]f[] g^ l‘] YZgn] [gf\alagfk hj][]\]fl lg l‘] akkmYf[] g^ km[‘ KYjalq =gf\k, /. BOND INSURANCE The following information has been furnished by the Insurer for use in this Official Statement. No representation is made by the City or District or the Underwriter as to the accuracy or completeness of this information, or the absence of material adverse changes therein at any time subsequent to the date hereof. See APPENDIX G for a specimen of the Insurance Policy. Bond Insurance Policy >gf[mjj]fldq oal‘ l‘] akkmYf[] g^ l‘] 0.0/ =gf\k* <kkmj]\ BmYjYflq Hmfa[ahYd >gjh, ’l‘] yDfkmj]jz( oadd akkm] alk Hmfa[ahYd =gf\ DfkmjYf[] Kgda[q ^gj l‘] Dfkmj]\ =gf\k ’l‘] yDfkmjYf[] Kgda[qz(, O‘] DfkmjYf[] Kgda[q _mYjYfl]]k l‘] k[‘]\md]\ hYqe]fl g^ hjaf[ahYd g^ Yf\ afl]j]kl gf l‘] Dfkmj]\ =gf\k o‘]f \m] Yk k]l ^gjl‘ af l‘] ^gje g^ l‘] DfkmjYf[] Kgda[q af[dm\]\ Yk <hh]f\ap B lg l‘ak J^^a[aYd NlYl]e]fl, O‘] DfkmjYf[] Kgda[q ak fgl [gn]j]\ Zq Yfq afkmjYf[] k][mjalq gj _mYjYflq ^mf\ ]klYZdak‘]\ mf\]j I]o Tgjc* >Yda^gjfaY* >gff][la[ml gj Adgja\Y afkmjYf[] dYo, Assured Guaranty Municipal Corp. O‘] Dfkmj]j ak Y I]o Tgjc \gea[ad]\ ^afYf[aYd _mYjYflq afkmjYf[] [gehYfq Yf\ Yf af\aj][l kmZka\aYjq g^ <kkmj]\ BmYjYflq Gl\, ’y<BGz(* Y =]jem\Y+ZYk]\ ‘gd\af_ [gehYfq o‘gk] k‘Yj]k Yj] hmZda[dq ljY\]\ Yf\ Yj] dakl]\ gf l‘] I]o Tgjc Nlg[c @p[‘Yf_] mf\]j l‘] kqeZgd y<BJz, <BG* l‘jgm_‘ alk gh]jYlaf_ kmZka\aYja]k* hjgna\]k [j]\al ]f‘Yf[]e]fl hjg\m[lk lg l‘] P,N, Yf\ afl]jfYlagfYd hmZda[ ^afYf[] ’af[dm\af_ af^jYkljm[lmj]( Yf\ kljm[lmj]\ ^afYf[] eYjc]lk Yf\* Yk g^ J[lgZ]j /* 0./7* Ykk]l eYfY_]e]fl k]jna[]k, I]al‘]j <BG fgj Yfq g^ alk k‘Yj]‘gd\]jk gj Y^^adaYl]k* gl‘]j l‘Yf l‘] Dfkmj]j* ak gZda_Yl]\ lg hYq Yfq \]Zlk g^ l‘] Dfkmj]j gj Yfq [dYaek mf\]j Yfq afkmjYf[] hgda[q akkm]\ Zq l‘] Dfkmj]j, O‘] Dfkmj]j{k ^afYf[aYd klj]f_l‘ ak jYl]\ y<<z ’klYZd] gmldggc( Zq N%K BdgZYd MYlaf_k* Y Zmkaf]kk mfal g^ NlYf\Yj\ % Kggj{k AafYf[aYd N]jna[]k GG> ’yN%Kz(* y<<)z ’klYZd] gmldggc( Zq Fjgdd =gf\ MYlaf_ <_]f[q* Df[, ’yF=M<z( Yf\ y<0z ’klYZd] gmldggc( ZqHgg\q{k Dfn]klgjk N]jna[]* Df[, ’yHgg\q{kz(, @Y[‘ jYlaf_ g^ l‘] Dfkmj]j k‘gmd\ Z] ]nYdmYl]\ af\]h]f\]fldq, <f ]phdYfYlagf g^ l‘] ka_fa^a[Yf[] g^ l‘] YZgn] jYlaf_k eYq Z] gZlYaf]\ ^jge l‘] Yhhda[YZd] jYlaf_ Y_]f[q, O‘] YZgn] jYlaf_k Yj] fgl j][gee]f\Ylagfk lg Zmq* k]dd gj ‘gd\ Yfq k][mjalq* Yf\ km[‘jYlaf_k Yj]kmZb][l lgj]nakagfgj oal‘\jYoYd Yl Yfqlae] Zql‘] jYlaf_Y_]f[a]k* af[dm\af_oal‘\jYoYd afalaYl]\ Yl l‘] j]im]kl g^ l‘] Dfkmj]j af alk kgd] \ak[j]lagf, Df Y\\alagf* l‘] jYlaf_ Y_]f[a]k eYq Yl Yfq lae] [‘Yf_] l‘] Dfkmj]j{k dgf_+l]je jYlaf_ gmldggck gj hdY[] km[‘ jYlaf_k gf Y oYl[‘ dakl ^gj hgkkaZd] \gof_jY\] af l‘] f]Yj l]je, <fq \gofoYj\ j]nakagf gj oal‘\jYoYd g^ Yfq g^ l‘] YZgn] jYlaf_k* l‘] Ykka_fe]fl g^ Y f]_Ylan] gmldggc lg km[‘ jYlaf_k gj l‘] hdY[]e]fl g^ km[‘ jYlaf_k gf Y f]_Ylan] oYl[‘ dakl eYq ‘Yn] Yf Y\n]jk] ]^^][l gf l‘] eYjc]l hja[] g^ Yfq k][mjalq _mYjYfl]]\ Zq l‘] Dfkmj]j, O‘] Dfkmj]j gfdq _mYjYfl]]k k[‘]\md]\ hjaf[ahYd Yf\ k[‘]\md]\ afl]j]kl hYqe]flk hYqYZd] Zq l‘] akkm]j g^ Zgf\k afkmj]\ Zq l‘] Dfkmj]j gf l‘] \Yl]’k( o‘]f km[‘ Yegmflk o]j] afalaYddq k[‘]\md]\ lg Z][ge] \m] Yf\ hYqYZd] ’kmZb][l lg Yf\ af Y[[gj\Yf[] oal‘ l‘] l]jek g^ l‘] j]d]nYfl afkmjYf[] hgda[q(* Yf\ \g]k fgl _mYjYfl]] l‘] eYjc]l hja[] gj daima\alq g^ l‘] k][mjala]k al afkmj]k* fgj \g]k al _mYjYfl]] l‘Yl l‘] jYlaf_k gf km[‘ k][mjala]k oadd fgl Z] j]nak]\ gj oal‘\jYof, Current Financial Strength Ratings Jf Emdq 6* 0.0/* N%K Yffgmf[]\ al ‘Y\ Y^^aje]\ <BH{k ^afYf[aYd klj]f_l‘ jYlaf_ g^ y<<z ’klYZd] gmldggc(, <BH [Yf _an] fg YkkmjYf[] Yk lg Yfq ^mjl‘]j jYlaf_k Y[lagf l‘Yl N%K eYq lYc], Jf J[lgZ]j 07* 0.0.* F=M< Yffgmf[]\ al ‘Y\ Y^^aje]\ <BH{k afkmjYf[] ^afYf[aYd klj]f_l‘ jYlaf_ g^ y<<)z ’klYZd] gmldggc(, <BH [Yf _an] fg YkkmjYf[] Yk lg Yfq ^mjl‘]j jYlaf_k Y[lagf l‘Yl F=M< eYq lYc], Jf <m_mkl /1* 0./7* Hgg\q{k Yffgmf[]\ al ‘Y\ Y^^aje]\ l‘] Dfkmj]j{k afkmjYf[] ^afYf[aYd klj]f_l‘ jYlaf_ g^ y<0z ’klYZd] gmldggc(, O‘] Dfkmj]j [Yf _an] fg YkkmjYf[] Yk lg Yfq ^mjl‘]j jYlaf_k Y[lagf l‘Yl Hgg\q{k eYq lYc], // Agj egj] af^gjeYlagf j]_Yj\af_ l‘] 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l‘]j] ak fg YkkmjYf[] l‘Yl l‘] >alq [gmd\ eYc] km[‘ hYqe]fl, @^^][lan] Emdq /* /761 Y bm\_e]fl \]Zlgj ’hjgh]jlq gof]j( ‘Yk Yl d]Ykl /2. \Yqk ^jge l‘] \Yl] g^ k]jna[] g^ l‘] fgla[] g^ d]nq af o‘a[‘ lg j]\]]e l‘] hjgh]jlq lg Z] kgd\, D^ Y bm\_e]fl \]Zlgj ^Yadk lg kg j]\]]e Yf\ l‘] hjgh]jlq ak kgd\* ‘ak gfdq j]e]\q ak Yf Y[lagf lg k]l Yka\] l‘] kYd]* o‘a[‘ emkl Z] Zjgm_‘l oal‘af 4 egfl‘k g^ l‘] \Yl]g^kYd], D^*YkY j]kmdl g^km[‘YfY[lagfY^gj][dgkmj]kYd]akk]lYka\]*l‘]bm\_e]fl akj]nan]\Yf\l‘]bm\_e]fl [j]\algj ’a,],* l‘] >alq* gf Z]‘Yd^ g^ l‘] ?aklja[l( ak ]flald]\ lg afl]j]kl gf l‘] j]nan]\ bm\_e]fl Yk a^ l‘] kYd] ‘Y\ fgl Z]]f eY\], Limited Liability OC@ =JI?N <M@ K<T<=G@ NJG@GT AMJH OC@ KMJ>@@?N JA OC@ NK@>D<G O<S OJ =@ G@QD@? <IIP<GGT JI OC@ O<S<=G@ KMJK@MOT RDOCDI OC@ ?DNOMD>O <I? <HJPION DI >@MO<DI API?N <I? <>>JPION @NO<=GDNC@? PI?@M OC@ ADN><G <B@IO <BM@@H@IO, I@DOC@M OC@ A<DOC <I? >M@?DO IJM OC@ O<SDIB KJR@M JA OC@ >DOT* OC@ >JPIOT* OC@ NO<O@ JM <IT KJGDOD><G NP=?DQDNDJI OC@M@JA ’JOC@M OCO* OJ OC@ GDHDO@? @SO@IO N@O AJMOC DI OC@ ADN><G <B@IO <BM@@H@IO( DN KG@?B@? OJ OC@ K<TH@IO JA OC@ KMDI>DK<G JA* KM@HDPH* DA <IT* JM DIO@M@NO JI OC@ =JI?N, OC@ =JI?N <M@ IJO N@>PM@? =T < G@B<G JM @LPDO<=G@ KG@?B@ JA JM >C<MB@* GD@I JM @I>PH=M@ PKJI <IT JA OC@ KMJK@MOT JM M@Q@IP@N JA OC@ >DOT <I? OC@ K<TH@IO JA OC@ DIO@M@NO JI JM KMDI>DK<G JA JM M@?@HKODJI KM@HDPHN* DA <IT* JI OC@ =JI?N DN IJO < B@I@M<G ?@=O* GD<=DGDOT JM J=GDB<ODJI JA OC@ >DOT, Property Assessed Values O‘] Ykk]kk]\ nYdm]k g^ hjgh]jlq af l‘] ?aklja[l \ak[mkk]\ af l‘ak J^^a[aYd NlYl]e]fl Yj] ^jge l‘] >gmflq <kk]kkgj{kYkk]kke]fljgdd^gj^ak[Yd q]Yj0.0.+0/ ’Ykg^ l‘]EYfmYjq/* 0.0.da]f\Yl]( Yf\lglYd]\#/*.05*013*434* af[dm\af_ Y_ja[mdlmjYd dYf\, O‘]k] Ykk]kk]\ nYdm]k j]hj]k]fl l‘] y^mdd [Yk‘ nYdm]z g^ km[‘ hjgh]jlq Yk \]l]jeaf]\ Zq l‘] >gmflq <kk]kkgj, KmjkmYfl lg jmd]k g^ l‘] NlYl] =gYj\ g^ @imYdarYlagf l‘Yl _gn]jf l‘] >gmflq <kk]kkgj{k nYdmYlagf g^ hjgh]jlq af l‘] ?aklja[l* y^mdd [Yk‘ nYdm]z g^ j]Yd hjgh]jlq e]Yfk l‘] hja[] Yl o‘a[‘ l‘] mf]f[meZ]j]\ gj mfj]klja[l]\^]]kaehd] afl]j]klaf l‘] j]Yd hjgh]jlq’kmZb][l lg Yfq]f^gj[]YZd] _gn]jfe]flYd j]klja[lagfk( ogmd\ ljYfk^]j ^gj [Yk‘ gj alk ]imanYd]fl mf\]j hj]nYadaf_ eYjc]l [gf\alagfk, O‘]k] jmd]k Ydkg hjgna\] l‘Yl o‘]f nYdmaf_ hjgh]jlq Yk Y j]kmdl g^ Y [‘Yf_] af gof]jk‘ah ^gj [gfka\]jYlagf al k‘Ydd Z] j]ZmllYZdq hj]kme]\ l‘Yl l‘] [gfka\]jYlagf nYdm]\ af egf]q ’a,],* l‘] hmj[‘Yk] hja[](* o‘]l‘]j hYa\ af egf]q gj gl‘]joak]* ak l‘] ^mdd [Yk‘ nYdm] g^ l‘] hjgh]jlq, KmjkmYfl lg l‘] >Yda^gjfaY >gfklalmlagf* l‘] ^mdd [Yk‘ nYdm] g^ hjgh]jlq eYq j]^d][l ^jge q]Yj lg q]Yj l‘] af^dYlagfYjq jYl] fgl lg ]p[]]\ log h]j[]fl ^gj Yfq _an]f q]Yj gj j]\m[lagf Yk k‘gof af l‘] [gfkme]j hja[] af\]p gj [gehYjYZd] \YlY ^gj l‘] Yj]Y mf\]j lYpaf_ bmjak\a[lagf* gj eYq Z] j]\m[]\ lg j]^d][l kmZklYflaYd \YeY_]* \]kljm[lagf gj gl‘]j ^Y[lgjk [Ymkaf_ Y \][daf] af nYdm], M][]fl j]hgjlk Zq j]Yd ]klYl] af\mkljq j]hgjlaf_ ^ajek af\a[Yl] l‘Yl ‘ge] kYd]k hja[]k Yj] \][dafaf_ af kge] hYjlk g^ Ngml‘]jf >Yda^gjfaY* ‘go]n]j l‘] >gmflq <kk]kkgj{k g^^a[] k‘gok l‘Yl kYd]k hja[]k ^gj j]ka\]flaYd hjgh]jlq gj gl‘]j hjgh]jlq af l‘] ?aklja[l ‘Yn] af[j]Yk]\ eg\]kldq kaf[] EYfmYjq /* 0.0., <dkg* ‘ge]gof]jk af l‘] ?aklja[l o‘g h]j[]an] l‘Yl l‘]aj hjgh]jlq ogmd\ k]dd ^gj d]kk l‘Yf l‘] [mjj]fl Ykk]kk]\ nYdm]* eYq afalaYl] klYlmlgjq Ykk]kke]fl Yhh]Ydk af Yf ]^^gjl lg ‘Yn] l‘] Ykk]kk]\ nYdm] g^ l‘]aj hjgh]jlq j]\m[]\, Ig YkkmjYf[] [Yf Z] _an]f*l‘]j]^gj]*l‘Yl l‘]Ykk]kk]\nYdm] g^hjgh]jlqafl‘] ?aklja[l oadd fgl Z]j]\m[]\ Zq l‘] >gmflq <kk]kkgj ^gj ^ak[Yd q]Yj 0.0/+00 gj ^gj Yfq kmZk]im]fl ^ak[Yd q]Yj, /5 N]] yNK@>D<G MDNF A<>OJMN w M]\m[lagf g^ <kk]kk]\ QYdm]k,z <kk]kk]\ nYdm]k* Yk \]l]jeaf]\ Zq l‘] >gmflq <kk]kkgj* eYq fgl j]^d][l l‘] Y[lmYd eYjc]l nYdm] g^ hjgh]jlq af l‘] ?aklja[l ’],_,* ‘ge]k af l‘] ?aklja[l ea_‘l k]dd ^gj egj] gj d]kk l‘Yf l‘] >gmflq <kk]kkgj{k Ykk]kk]\ nYdm](, O‘] >alq \g]k fgl afl]f\ lg ‘Yn] Yf YhhjYakYd hj]hYj]\ lg ]klaeYl] l‘] eYjc]l nYdm] g^ Yfq hjgh]jlq af l‘] ?aklja[l, OYZd]/k‘gokYffmYd[‘Yf_]kafYkk]kk]\nYdmYlagfkZqdYf\mk][Yl]_gjq^gj^ak[Ydq]Yjk0./4+/5l‘jgm_‘ 0.0.+0/, TABLE 1 Community Facilities District No. 1 (Encinitas Ranch Public Improvements) Annual Changes in Assessed Valuation Fiscal Year Single Family Property Assessed Valuation % Change Commercial Property Assessed Valuation % Change Taxable Property Assessed Valuation % Change 0./4+/5 #5.0*620*7.5 1,3/$#/23*5.1*071 /,22$# 626*324*0..1,/3$ 0./5+/6 51.*/6.*3..1,67 /26*733*021 0,01 657*/13*521 1,4. 0./6+/7 543*6/7*5.1 2,66 /54*3.3*27./6,3.720*103*/71 5,/7 0./7+0.572*043*./3 1,5//6.*/30*75.0,.5 752*2/5*763 1,2/ 0.0.+0/6/5*631*206 0,75 /61*5/2*521 /,76 /*../*346*/5/0,57 ’/(<kk]kk]\ nYdm] g^ dYf\ Yf\ aehjgn]e]flk ZYk]\ gf af^gjeYlagf hjgna\]\ Zq l‘] >gmflq g^ NYf ?a]_g <kk]kkgj, @p[dm\]k <_ja[mdlmjYd Kjgh]jlq, Ngmj[]8 N[gll <kkg[aYl]k, /6 Direct and Overlapping Debt N]l gml Z]dgo ak Yf gn]jdYhhaf_ \]Zl j]hgjl \Yl]\ Emf] 1.* 0.0/, Dl k‘gok l‘Yl l‘] >gmflq g^ NYf ?a]_g Ykk]kk]\ nYdmYlagf g^ dYf\ Yf\ aehjgn]e]flk ’af[dm\af_ Y_ja[mdlmjYd dYf\( oal‘af l‘] ?aklja[l ^gj ^ak[Yd q]Yj 0.0.+ 0/ oYk #/*.05*013*434, O‘] >alq Yf\ l‘] Pf\]jojal]j ‘Yn] fgl af\]h]f\]fldq j]na]o]\ l‘ak \]Zl j]hgjl Yf\ eYc] fg j]hj]k]flYlagfk Yk lg alk [gehd]l]f]kk gj Y[[mjY[q, TABLE 2 CITY OF ENCINITAS COMMUNITY FACILITIES DISTRICT NO. 1 (ENCINITAS RANCH PUBLIC IMPROVEMENTS) STATEMENT OF DIRECT AND OVERLAPPING DEBT 0.0.+0/ <kk]kk]\ QYdmYlagf8 #/*.05*013*434 ’GYf\ Yf\ Dehjgn]e]flk(’/( ?DM@>O <I? JQ@MG<KKDIB O<S <I? <NN@NNH@IO ?@=O8 $ <hhda[YZd] ?]Zl 4-1.-0/ H]ljghgdalYf RYl]j ?aklja[l B]f]jYd JZda_Ylagf =gf\k .,.1/$#6*111 HajY >gklY >geemfalq >gdd]_] ?aklja[l B]f]jYd JZda_Ylagf =gf\k .,623 0*367*213 NYf ?a]_malg Pfagf Ca_‘ N[‘ggd ?aklja[l B]f]jYd JZda_Ylagf =gf\k /,172 4*./2*.6. NYf ?a]_malg Pfagf Ca_‘ N[‘ggd ?aklja[l >geemfalq AY[adala]k ?aklja[l Ig, 72+1 70,466 3*200*013 @f[afalYk Pfagf N[‘ggd ?aklja[l B]f]jYd JZda_Ylagf =gf\k 2,531 0*/30*03. City of Encinitas Community Facilities District No. 1 100.000 19,105,000 (2) Jdan]f‘Yaf Hmfa[ahYd RYl]j ?aklja[l <kk]kke]fl ?aklja[l Ig, 74+//,125 63*.46 OJO<G ?DM@>O <I? JQ@MG<KKDIB O<S <I? <NN@NNH@IO ?@=O #13*154*2./ MYlagk lg 0.0.+0/ <kk]kk]\ QYdmYlagf8 Direct Debt ($19,105,000) ......................................................................1.86% and Value-to-Lien Ratio 53.8:1 OglYd ?aj][l Yf\ Jn]jdYhhaf_ OYp Yf\ <kk]kke]fl ?]Zl,,,,,,,,,,,,,,,,,,,,,,,,,,,,1,22$ Yf\ QYdm]+lg+Ga]f MYlag 07,.8/ ’/(Df[dm\]k nYdm] g^ Y_ja[mdlmjYd dYf\, ’0(Df[dm\]k l‘] 0.0/ =gf\k, Ngmj[]8 >Yda^gjfaY Hmfa[ahYd NlYlakla[k* Df[, /7 <l l‘] kh][aYd ]d][lagf ‘]d\ gf <m_mkl 01* /773* l‘] dYf\gof]jk oal‘af l‘] afalaYd Zgmf\Yja]k g^ l‘] ?aklja[l* [gfklalmlaf_ l‘] l‘]f imYda^a]\ ]d][lgjYl] g^ l‘] ?aklja[l Yhhjgn]\ Y eYpaeme Zgf\]\ af\]Zl]\f]kk ^gj l‘] ?aklja[l g^ #2.*...*..., NmZb][l lg l‘] kYlak^Y[lagf g^ []jlYaf [gf\alagfk k]l ^gjl‘ af l‘] Aak[Yd <_]fl <_j]]e]fl* l‘] ?aklja[l eYq ^jge lae] lg lae] akkm] af\]Zl]\f]kk hYqYZd] ^jge l‘] Nh][aYd OYp]k gf Y hYjalq oal‘ l‘] 0.0/ =gf\k ^gj l‘] hmjhgk] g^ j]^mf\af_ Y hgjlagf g^ l‘] 0.0/ =gf\k* oal‘gml ^mjl‘]j ngl]j YhhjgnYd, >gf[mjj]fldq oal‘ l‘] ^gjeYlagf g^ l‘] ?aklja[l* l‘] >alq Yff]p]\ l‘] @f[afalYk MYf[‘ oal‘af l‘] >alq{k ]paklaf_ dYf\k[Yhaf_ Yf\ da_‘laf_ eYafl]fYf[] \aklja[l o‘a[‘ oadd kmZb][l l‘] hjgh]jlq oal‘af l‘] ?aklja[l lg Yf YffmYd d]nq ^gj km[‘ eYafl]fYf[], O‘] NYf ?a]_malg Pfagf Ca_‘ N[‘ggd ?aklja[l ^gje]\ Y [geemfalq ^Y[adala]k \aklja[l lg ^afYf[] k[‘ggd ^Y[adala]k o‘a[‘ kmZb][lk \]n]dgh]\ j]ka\]flaYd hjgh]jlq lg Y\\alagfYd kh][aYd lYp]k g^ YhhjgpaeYl]dq #6.. h]j \o]ddaf_ mfal YffmYddq, I]al‘]j l‘] >alq fgj l‘] ?aklja[l ‘Yk [gfljgd gn]j l‘] Yegmfl g^ Y\\alagfYd \]Zl hYqYZd] ^jge lYp]k gj Ykk]kke]flk gf Ydd gj Y hgjlagf g^ l‘] hjgh]jlq oal‘af l‘] ?aklja[l* l‘Yl eYq Z] akkm]\ af l‘] ^mlmj] Zq gl‘]j _gn]jfe]flYd ]flala]k gj \aklja[lk* af[dm\af_ Zml fgl daeal]\ lg k[‘ggd \aklja[lk* oYl]j \aklja[lk gj Yfq gl‘]j \aklja[l ‘Ynaf_bmjak\a[lagf gn]j Ydd gj Y hgjlagf g^ l‘] dYf\ oal‘af l‘] ?aklja[l, Igl‘af_ hj]n]flk l‘] gof]jk g^ dYf\ oal‘af l‘] ?aklja[l ^jge [gfk]flaf_ lg l‘] akkmYf[] g^ Y\\alagfYd \]Zl Zq gl‘]j hmZda[ Y_]f[a]k o‘a[‘ ogmd\ Z] k][mj]\ Zq lYp]k gj Ykk]kke]flk gf l‘] kYe] hjgh]jlq kmZb][l lg l‘] Nh][aYd OYp]k, Og l‘] ]pl]fl km[‘ af\]Zl]\f]kk ak hYqYZd] ^jge Ykk]kke]flk* gl‘]j kh][aYd lYp]k d]na]\ hmjkmYfl lg l‘] <[l gj lYp]k* km[‘ Ykk]kke]flk* kh][aYd lYp]k Yf\ lYp]k eYq ‘Yn] Y da]f gf l‘] hjgh]jlq oal‘af l‘] ?aklja[l af Y\\alagf lg Yf\ gf Y hYjalq oal‘ l‘] da]f g^ l‘] Nh][aYd OYp]k, <[[gj\af_dq* l‘] da]fk gf l‘] hjgh]jlq oal‘af l‘] ?aklja[l [gmd\ af[j]Yk]* oal‘gml Yfq [gjj]khgf\af_ af[j]Yk] af l‘] nYdm] g^ l‘] hjgh]jlq oal‘af l‘] ?aklja[l Yf\ l‘]j]Zq k]n]j]dq j]\m[] l‘] jYlag l‘Yl ]paklk Yl l‘] lae] l‘] 0.0/ =gf\k Yj] akkm]\ Z]lo]]f l‘] nYdm] g^ l‘] hjgh]jlq Yf\ l‘] \]Zl k][mj]\ Zq l‘] lYp]k Yf\ Ykk]kke]flk l‘]j]gf, O‘] aehgkalagf g^ km[‘ Y\\alagfYd af\]Zl]\f]kk [gmd\ Ydkg j]\m[] l‘] oaddaf_f]kk Yf\ YZadalq g^ l‘] hjgh]jlq gof]jk oal‘af l‘] ?aklja[l lg hYq l‘] Nh][aYd OYp]k o‘]f \m], N]] yNK@>D<G MDNF A<>OJMN + Jn]jdYhhaf_ Df\]Zl]\f]kk,z Hgj]gn]j* af l‘] ]n]fl g^ Y \]dafim]f[q af l‘] hYqe]fl g^ Y Nh][aYd OYp d]nq* fg YkkmjYf[] [Yf Z] _an]f l‘Yl l‘] hjg[]]\k g^ Yfq ^gj][dgkmj] kYd] ogmd\ Z] km^^a[a]fl lg hYq l‘] \]dafim]fl Nh][aYd OYp]k Yf\ Yfq gl‘]j \]dafim]fl kh][aYd lYp]k* Ykk]kke]flk gj lYp]k, N]] yNK@>D<G MDNF A<>OJMN w <kk]kk]\ QYdm],z Estimated Total Valuation of All Property Within the District O‘] ^gddgoaf_ lYZd]k k‘go l‘] Ykk]kk]\ nYdmYlagf g^ lYpYZd] hjgh]jlq af kmeeYjq ^gje ZYk]\ mhgf ]paklaf_ \]n]dghe]fl oal‘af l‘] ?aklja[l, O‘] ^ajkl lYZd] Ydkg k‘gok l‘] Yegmfl g^ l‘] Nh][aYd OYp YlljaZmlYZd] lg ]Y[‘ [Yl]_gjq Yf\ l‘] ]klaeYl]\ nYdm]+lg+da]f jYlag ZYk]\ gf l‘] Ykk]kk]\ nYdm] Yf\ \g]k fgl af[dm\] Yfq gl‘]j gn]jdYhhaf_ lYp Yf\ Ykk]kke]fl \]Zl, O‘] k][gf\ lYZd] k‘gok l‘] fmeZ]j g^ hYj[]dk Yf\ kh][aYd lYp da]fk Ykkg[aYl]\ oal‘ hjgh]jlq oal‘af ]Y[‘ [dYkka^a[Ylagf g^ nYdm]+lg+da]f jYlag, N]] yQYdm] lg Ga]f MYlagkz Z]dgo, 0. TABLE 3 CITY OF ENCINITAS COMMUNITY FACILITIES DISTRICT NO. 1 (ENCINITAS RANCH PUBLIC IMPROVEMENTS) VALUE-TO-LIEN RATIOS BY PROPERTY CLASS Class Parcel Commercial Acres Agricultural Acres Residential Units 2020-21 Assessed Value CFD Lien(1) Value-to- Lien (2) 2020-21 Special Tax % of 2020-21 Special Tax <_ja[mdlmjYd Kjgh]jlq’1(//+/05,.3 .# 03*445*263 f-Y f-Y # ..,..$ <hYjle]flk’2(/.,//+/.7 33*./4*130 5./*/3.56,38/7.*243 1,45 >gee]j[aYd Kjgh]jlq 13 50,.6 +./06*476*17/0*456*0.4 26,/8/123*33./2,.0 Naf_d] AYeadq M]ka\]flaYd 6/2 ++6/2 6/5*631*206 /3*503*422 30,.8/0*.06*763 60,1/ OglYd 64/50,/7 /05,.3 701 #/*.05*013*434 #/7*/.3*...31,68/#0*243*.../..,.. ’/(M]hj]k]flk ]Y[‘ hYj[]d{k hjghgjlagfYl] k‘Yj] g^ l‘] 0.0.+0/ Nh][aYd OYp emdlahda]\ Zq l‘] hjaf[ahYd Yegmfl g^ l‘] 0.0/ =gf\k, ’0(Df [Yd[mdYlaf_ l‘] QYdm]+lg+Ga]f jYlagk ^gj l‘ak lYZd]* l‘] fme]jYlgj ak l‘] 0.0.+0/ ^ak[Yd q]Yj <kk]kk]\ QYdm] Yf\ l‘] \]fgeafYlgj ak l‘] hjaf[ahYd Yegmfl g^ l‘] 0.0/ =gf\k g^ #/7*/3.*... o‘a[‘ \g]k fgl j]^d][l Yfq gl‘]j gn]jdYhhaf_ lYp gj Ykk]kke]fl \]Zl l‘]j]Zq j]\m[af_ l‘] gn]jYdd nYdm] lg da]f, ’1(<_ja[mdlmjYd Kjgh]jlq ak gfdq d]na]\ Y Nh][aYd OYp a^ Y\\alagfYd j]n]fm] ak f]]\]\ Y^l]j d]nqaf_ l‘] HYpaeme Nh][aYd OYp gf ?]n]dgh]\ Kjgh]jlq* Yk km[‘ l]je ak \]^af]\ af l‘] MYl] Yf\ H]l‘g\, Ig Nh][aYd OYp]k ‘Yn] ]n]j Z]]f d]na]\ gf <_ja[mdlmjYd Kjgh]jlq Yf\ al ak fgl Yfla[ahYl]\ l‘Yl Nh][aYd OYp]k oadd Z] d]na]\ gf <_ja[mdlmjYd Kjgh]jlq af l‘] ^mlmj], ’2(O‘] <hYjle]fl hYj[]d ak 2,14 Y[j]k Yf\ [gfkaklk g^ /0. YhYjle]fl mfalk Yf\ 1*... kimYj] ^]]l g^ [gee]j[aYd khY[], @d]n]f g^ l‘] YhYjle]fl mfalk Yj] \]ka_fYl]\ Yk y<^^gj\YZd]z Yf\ Yk km[‘ Yj] ]p]ehl ^jge Nh][aYd OYp]k, O‘] [gee]j[aYd khY[] ]f[gehYkk]k .,// Y[j]k g^ l‘] hYj[]d Ngmj[]8 N[gll <kkg[aYl]k, 0/ TABLE 4 CITY OF ENCINITAS COMMUNITY FACILITIES DISTRICT NO. 1 (ENCINITAS RANCH PUBLIC IMPROVEMENTS) SUMMARY VALUE-TO-LIEN RATIOS FOR SINGLE FAMILY PROPERTY Value to Lien Ratio (1) Number of Parcels Acres Residential Units 2020-21 Special Tax Percent of 2020-21 Special Tax 2020-21 Assessed Value CFD Lien =]lo]]f 4,18/ + 7,78/’0(1 .,36 1 # 7*.1/.,15$# 335*444 # 47*761 =]lo]]f /.8/ + /7,78/’0(1 .,20 1 5*.33 .,07 447*373 32*446 =]lo]]f 0.8/ w 75,68/6.6 /14,/2 6.6 0*./0*677 6/,43 6/4*404*/45 /3*4..*771 OglYd 6/2 /15,/2 6/2 #0*.06*763 60,1/$#6/5*631*206 #/3*503*422 ’/(Df [Yd[mdYlaf_ l‘] QYdm]+lg+Ga]f jYlagk ^gj l‘ak lYZd]* l‘] fme]jYlgj ak l‘] 0.0.+0/ <kk]kk]\ QYdm] Yf\ l‘] \]fgeafYlgj ak l‘] hjaf[ahYd Yegmfl g^ l‘] =gf\k g^ #/7*/3.*... o‘a[‘ \g]k fgl j]^d][l Yfq gl‘]j gn]jdYhhaf_ lYp gj Ykk]kke]fl \]Zl k‘gof gf OYZd] 0, ’0(Naf_d] ^Yeadq ‘ge]k oal‘ Ykk]kk]\ nYdm] daeal]\ af ^ak[Yd q]Yj 0.0.+0/ Zq l‘] ]p]ehlagfk _jYfl]\ lg k]fagjk mf\]j Kjghgkalagf 4. gj Kjghgkalagf 7., Ngmj[]8 N[gll <kkg[aYl]k, TABLE 5 CITY OF ENCINITAS COMMUNITY FACILITIES DISTRICT NO. 1 (ENCINITAS RANCH PUBLIC IMPROVEMENTS) SUMMARY VALUE-TO-LIEN RATIOS FOR APARTMENT AND COMMERCIAL PROPERTY* Value to Lien Ratio(1) Number of Parcels Acres Apartment Units 2020-21 Special Tax Percent of 2020-21 Special Tax 2020-21 Assessed Value CFD Lien <_ja[mdlmjYd Kjgh]jlq’0(///05,.3 .#..,..$# 03*445*263 #. =]lo]]f /2,28/ + /7,78//,36 .0*56..,//1/.*5.5 0/*33. =]lo]]f 0.,.8/ + 17,78//./5,44 .62*440 1,21 01*/02*/30 434*/57 =]lo]]f 2.,.8/ + /0/,/8/03 36,0./.7 126*351 /2,/3 /4.*057*662 0*5./*405 OglYd 25 0.1,27 /.7 #214*./3 /5,47 # 0.7*160*006 #1*157*134 ’/(Df [Yd[mdYlaf_ l‘] QYdm]+lg+Ga]f jYlagk ^gj l‘ak lYZd]* l‘] fme]jYlgj ak l‘] 0.0.+0/ <kk]kk]\ QYdm] Yf\ l‘] \]fgeafYlgj ak l‘] hjaf[ahYd Yegmfl g^ l‘] =gf\k g^ #/7*/3.*... o‘a[‘ \g]k fgl j]^d][l Yfq gl‘]j gn]jdYhhaf_ lYp gj Ykk]kke]fl \]Zl k‘gof gf OYZd] 0, ’0(<_ja[mdlmjYd Kjgh]jlq ak gfdq d]na]\ Y Nh][aYd OYp a^ Y\\alagfYd j]n]fm] ak f]]\]\ Y^l]j d]nqaf_ l‘] HYpaeme Nh][aYd OYp gf \]n]dgh]\ hjgh]jlq, Ig Nh][aYd OYp]k ‘Yn] ]n]j Z]]f d]na]\ gf <_ja[mdlmjYd Kjgh]jlq Yf\ al ak fgl Yfla[ahYl]\ l‘Yl Nh][aYd OYp]k oadd Z] d]na]\ gf <_ja[mdlmjYd Kjgh]jlq af l‘] ^mlmj], Ngmj[]8 N[gll <kkg[aYl]k, Igloal‘klYf\af_ l‘] ^gj]_gaf_ Yf\ ^gddgoaf_ \ak[mkkagfk Yf\ ]klaeYl]k g^ nYdm]* l‘]j] ak fg YkkmjYf[] l‘Yl* af l‘] ]n]fl g^ Y ^gj][dgkmj] kYd] ^gj \]dafim]fl Nh][aYd OYp]k* Yfq Za\ ogmd\ Z] j][]an]\ ^gj km[‘ hjgh]jlq gj l‘Yl Yfq Za\ j][]an]\ ogmd\ Z] km^^a[a]fl lg hYq km[‘ \]dafim]fl Nh][aYd OYp]k, N]] l‘] k][lagf ‘]j]af ]flald]\ yNK@>D<G MDNF A<>OJMNz, O‘] ?aklja[l ‘Yk fg [gfljgd gn]j l‘] Yegmfl g^ Y\\alagfYd af\]Zl]\f]kk l‘Yl eYq Z] akkm]\ af l‘] ^mlmj] Zq gl‘]j hmZda[ Y_]f[a]k* l‘] hYqe]fl g^ o‘a[‘* l‘jgm_‘ l‘] d]nq g^ Y lYp gj Yf Ykk]kke]fl* eYq Z] gf Y hYjalq oal‘ l‘] Nh][aYd OYp]k Yf\ Z] k][mj]\ Zq Y da]f gf Y hYjalq oal‘ l‘] da]f k][mjaf_ hYqe]fl g^ l‘] Nh][aYd OYp]k, N]] yN@>PMDOT AJM OC@ =JI?N + ?aj][l Yf\ Jn]jdYhhaf_ ?]Zlz ‘]j]af, 00 01 ENCINITAS RANCH DEVELOPMENT The information provided in this section has been included because it may be considered relevant to an informed evaluation and analysis of the 2021 Bonds and the District. The Bonds and Special Taxes are not personal obligations of any landowners. As a result, other than as provided herein and in the Continuing Disclosure Agreement no financial statements or information is, or will be, provided about any landowners. The Bonds are secured solely by the Special Tax Revenues, the Other Revenues and certain other amounts on deposit with the Fiscal Agent. 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Kjgh]jlq ’]p[]hl <kk]kkgj{k KYj[]dk [gflYafaf_ Zgl‘ <hYjle]fl Kjgh]jlq Yf\ >gee]j[aYd Kjgh]jlq( mh lg /..$ g^ l‘] Yhhda[YZd] <kka_f]\ Nh][aYd OYp ^gj km[‘ <kk]kkgj{k KYj[]d Yf\ mh lg /..$ g^ l‘] @ph][l]\ Nh][aYd OYp ’Yk \]^af]\ af @p‘aZal < ‘]j]lg( ^gj <kk]kkgj{k KYj[]dk [gflYafaf_ Zgl‘ <hYjle]fl Kjgh]jlq Yf\ >gee]j[aYd Kjgh]jlq9 Second, D^ Y\\alagfYd egfa]k Yj] f]]\]\ Y^l]j l‘] ^ajkl kl]h ‘Yk Z]]f [gehd]l]\* l‘] Nh][aYd OYp k‘Ydd Z] d]na]\ af ]imYd h]j[]flY_]k gf ]Y[‘ <kk]kkgj{k KYj[]d g^ Pf\]n]dgh]\ Kjgh]jlq* mh lg /..$ g^ l‘] HYpaeme Nh][aYd OYp ^gj Pf\]n]dgh]\ Kjgh]jlq9 Third, D^ Y\\alagfYd egfa]k Yj] f]]\]\ Y^l]j l‘] ^ajkl log kl]hk ‘Yn] Z]]f [gehd]l]\ l‘]f l‘] Nh][aYd OYp gf ]Y[‘ <kk]kkgj{k KYj[]d g^ ?]n]dgh]\ Kjgh]jlq [gflYafaf_ Zgl‘ <hYjle]fl Kjgh]jlq Yf\ >gee]j[aYd Kjgh]jlq k‘Ydd Z] af[j]Yk]\ ^jge l‘] @ph][l]\ Nh][aYd OYp mh lg /..$ g^ l‘] <kka_f]\ Nh][aYd OYp ^gj km[‘ <kk]kkgj{k KYj[]dk9 Fourth, D^ Y\\alagfYd egfa]k Yj] f]]\]\ Y^l]j l‘] ^ajkl l‘j]] kl]hk ‘Yn] Z]]f [gehd]l]\* l‘] Nh][aYd OYp k‘Ydd Z] d]na]\ af ]imYd h]j[]flY_]k gf ]Y[‘ <kk]kkgj{k KYj[]d g^ <_ja[mdlmjYd Kjgh]jlq* mh lg /..$ g^ l‘] HYpaeme Nh][aYd OYp ^gj <_ja[mdlmjYd Kjgh]jlq9 Fifth, D^ Y\\alagfYd egfa]k Yj] f]]\]\ Y^l]j l‘] ^ajkl ^gmj kl]hk ‘Yn] Z]]f [gehd]l]\* l‘]f l‘] d]nq g^ l‘] Nh][aYdOYpgf]Y[‘<kk]kkgj{kKYj[]d g^?]n]dgh]\Kjgh]jlqo‘gk]HYpaemeNh][aYdOYpak\]l]jeaf]\l‘jgm_‘ l‘] Yhhda[Ylagf g^ l‘] =Y[cmh Nh][aYd OYp k‘Ydd Z] af[j]Yk]\ af ]imYd h]j[]flY_]k ^jge l‘] <kka_f]\ Nh][aYd OYp mh lg l‘] HYpaeme Nh][aYd OYp ^gj ]Y[‘ km[‘ <kk]kkgjk{ KYj[]d9 Yf\ Sixth, D^ Y\\alagfYd egfa]k Yj] f]]\]\ Y^l]j l‘] ^ajkl ^an] kl]hk ‘Yn] Z]]f [gehd]l]\* l‘]f l‘] Nh][aYd OYp k‘Ydd Z] d]na]\ af ]imYd h]j[]flY_]k gf ]Y[‘ <kk]kkgj{k KYj[]d g^ OYpYZd] Kjgh]jlq Jof]j <kkg[aYlagf Kjgh]jlq mh lg l‘] HYpaeme Nh][aYd OYp ^gj OYpYZd] Kjgh]jlq Jof]j <kkg[aYlagf Kjgh]jlq, 05 Phgf [gehd]lagf g^ l‘][gehmlYlagf g^ l‘] Yegmflk g^Nh][aYd OYp lg Z] d]na]\ gf]Y[‘ KYj[]d Yk gmldaf]\ YZgn]* l‘] Oj]Ykmj]j k‘Ydd hj]hYj] Yf\ ljYfkeal lg l‘] <m\algj* km[‘ \YlY Yk l‘] <m\algj j]imaj]k lg af[dm\] l‘] d]nq g^ l‘] Nh][aYd OYp]k gf l‘] f]pl j]Yd hjgh]jlq lYp jgdd, O‘] Nh][aYd OYp]k k‘Ydd Z] hYqYZd] Yf\ Z] [gdd][l]\ af l‘] kYe] eYff]j Yf\ Yl l‘] kYe] lae] Yf\ af log ]imYd afklYdde]flk Yk l‘] _]f]jYd lYp]k gf j]Yd hjgh]jlq Yj] hYqYZd] Yf\ k‘Ydd ‘Yn] l‘] kYe] hjagjalq* Z][ge] \]dafim]fl Yl l‘] kYe] lae] Yf\ af l‘] kYe] hjghgjlagf Yf\ Yegmflk Yf\ Z]Yj l‘] kYe] hjghgjlagf g^ h]fYdla]k Yf\ afl]j]kl Y^l]j \]dafim]f[q Yk \m] gf Y\ nYdgj]e lYp]k gf j]Yd hjgh]jlq, Prepayment of Special Taxes, O‘]MYl] Yf\H]l‘g\ hjgna\]k l‘Yl l‘]da]f g^ Nh][aYdOYp]k gf YfqKYj[]d g^ ?]n]dgh]\ gj Pf\]n]dgh]\ Kjgh]jlq eYq Z] hj]hYa\ af o‘gd] gj af hYjl mhgf hYqe]fl g^ l‘] Yegmflk \]l]jeaf]\ af Y[[gj\Yf[] oal‘ alk hjgnakagfk, N]] y<KK@I?DS < + <e]f\]\ Yf\ M]klYl]\ MYl] Yf\ H]l‘g\ g^ <hhgjlagfe]fl g^ Nh][aYd OYpz, <fq hjg[]]\k ^jge l‘] hj]hYqe]fl g^ Nh][aYd OYp]k ’f]l g^ []jlYaf >alq Y\eafakljYlan] [gklk af[mjj]\ af [gff][lagf oal‘ l‘] hj]hYqe]fl( Yj] j]imaj]\ lg Z] \]hgkal]\ af l‘] Nh][aYd M]n]fm] Amf\, <egmflk ‘]d\ af l‘] Nh][aYd M]n]fm] Amf\ eYq Z] ljYfk^]jj]\ lg l‘] =gf\ Amf\ Yf\ Yhhda]\ lg l‘] j]\]ehlagf g^ =gf\k Yl l‘] lae]k k]l ^gjl‘ af l‘] Aak[Yd <_]fl <_j]]e]fl, N]] yOC@ =JI?N + M]\]ehlagfz, O‘] lYZd] k‘gof Z]dgo k]lk ^gjl‘ l‘] jYlag g^ Nh][aYdOYp]k d]na]\ Yl l‘] eYpaeme YddgoYZd] jYl] ^gj ]Y[‘ [Yl]_gjq g^ lYpYZd] hjgh]jlq lg l‘] lglYd j]n]fm]k j]imaj]\ Zq l‘] ?aklja[l lg hYq \]Zl k]jna[] gf l‘] 0.0/ =gf\k* Ykkmeaf_ l‘] [mjj]fl ^mddq+\]n]dgh]\ klYlmk g^ l‘] >A?, Nh][aYd OYp]k o]j] ^ajkl d]na]\ af l‘] ?aklja[l af /775 gf kaf_d] ^Yeadq j]ka\]f[]k, O‘]k] eYpaeme lYp]k Yj] ^gj Naf_d]+AYeadq Kjgh]jlq* >gee]j[aYd Kjgh]jlq ’af[dm\af_ YhYjle]fl hjgh]jlq( Yf\ <_ja[mdlmjYd Kjgh]jlq, Pfd]kk l‘]j] Yj] ka_fa^a[Yfl \]dafim]f[a]k* l‘] Nh][aYd OYp ak fgl ]n]j ]ph][l]\ lg Z] d]na]\ gf <_ja[mdlmjYd Kjgh]jlq, TABLE 6 CITY OF ENCINITAS COMMUNITY FACILITIES DISTRICT NO. 1 (ENCINITAS RANCH PUBLIC IMPROVEMENTS) ADEQUACY OF SPECIAL TAX REVENUE Year Ending September 1 Debt Service Requirement(1) Limited Maximum Special Tax on Developed Single Family Property(2) Maximum Assigned Special Tax on Developed Commercial Property(3) Maximum Special Tax on Agricultural Property(4) Total Maximum Special Tax Coverage from Developed Property Coverage from Total Maximum Special Tax(5) 0.00 #0*1/5*172 #0*.75*727 #465*5/6 #/*512*657 #2*30.*324 /0.,0$/73,/$ 0.01 0*100*./6 0*.75*727 5./*251 /*547*355 2*346*776 /0.,4 /74,6 0.02 0*1/5*743 0*.75*727 5/3*3.0 /*6.2*747 2*4/6*2/7 /0/,2 /77,0 0.03 0*120*470 0*.75*727 507*6/0 /*62/*.46 2*446*607 /0.,5 /77,1 0.04 0*1/4*0/4 0*.75*727 522*2.6 /*655*667 2*50.*024 /00,5 0.1,6 0.05 0*1.7*322 0*.75*727 537*074 /*7/3*225 2*550*470 /01,5 0.4,5 0.06 0*1.7*216 0*.75*727 552*260 /*731*534 2*604*/65 /02,2 0.7,. 0.07 0*1/2*4./0*.75*727 567*750 /*770*61/2*66.*530 /02,6 0/.,7 0.1.0*104*.24 0*.75*727 6.3*55/0*.10*466 2*714*2.6 /02,6 0/0,0 ’/(Df[dm\]k \]Zl k]jna[] ^gj l‘] =gf\k hdmk Y ^]] ^gj <\eafakljYlan] @ph]fk]k, Agj l‘] T]Yj @f\af_ N]hl]eZ]j /* 0.00* <\eafakljYlan] @ph]fk]k lglYd #10*...* Yf\ l‘ak Yegmfl af[j]Yk]k Zq 0$ ]Y[‘ q]Yj l‘]j]Y^l]j, ’0(Nh][aYd OYp d]na]\ gf 6/1 kaf_d] ^Yeadq j]ka\]flaYd mfalk Yl 44$ g^ l‘] HYpaeme <kka_f]\ Nh][aYd OYp o‘a[‘ ak l‘] eYpaeme YddgoYZd] kh][aYd lYp ^gj j]ka\]flaYd hjgh]jlq lg [gn]j \]Zl k]jna[] hdmk Y /.$ af[j]Yk] ^gj \]dafim]f[a]k, ’1(<kka_f]\ Nh][aYd OYp ^gj 50,/7 [gee]j[aYd Y[j]k Yf\ /.7 <hYjle]fl mfalk o‘a[‘ af[j]Yk]k Zq 0$ ]Y[‘ q]Yj, ’2(HYpaeme Nh][aYd OYp ^gj /05,.3 Y[j]k g^ <_ja[mdlmjYd dYf\ o‘a[‘ af[j]Yk]k Zq 0$ ]Y[‘ q]Yj, Ngmj[]8 N[gll <kkg[aYl]k Yf\ Caddlgh N][mjala]k Df[, 06 Historical Levies and Tax Delinquencies Nh][aYd OYp]k ^gj l‘] ?aklja[l o]j] ^ajkl d]na]\ af Aak[Yd T]Yj /774+75, O‘] ^gddgoaf_ lYZd] addmkljYl]k l‘] ‘aklgja[Yd Nh][aYd OYp \]dafim]f[a]k ^jge ^ak[Yd q]Yj 0./4+/5 lg l‘] hj]k]fl ^gj hjgh]jlq dg[Yl]\ oal‘af l‘] ?aklja[l, TABLE 7 CITY OF ENCINITAS COMMUNITY FACILITIES DISTRICT NO. 1 (ENCINITAS RANCH PUBLIC IMPROVEMENTS) HISTORICAL SPECIAL TAX DELINQUENCIES Fiscal Year Aggregate Special Tax Levy Amount Delinquent 6/30 of the Fiscal Year Fiscal Year Delinquency Rate Amount Remaining Delinquent as of 6/30/2021 Delinquency Rate as of 6/30/2021 0./4+/5 #0*3.4*2..#/6*255 .,52$# ..,..$ 0./5+/6 0*323*...//*/37 .,22 ..,.. 0./6+/7 0*24.*...7*014 .,16 ..,.. 0./7+0.0*16.*...7*266 .,2.1*632 .,/4 0.0.+0/0*243*...#5*175 .,1.# 5*175 .,1. Ngmj[]8 N[gll <kkg[aYl]k, Special Taxpayers O‘] ^gddgoaf_ lYZd] addmkljYl]k l‘] kh][aYd lYphYq]jk oal‘af l‘] ?aklja[l* Yf\ l‘] ]klaeYl]\ Aak[Yd T]Yj 0.0/+00 Nh][aYd OYp Yddg[Yl]\ lg km[‘ hjgh]jla]k, O‘ak af^gjeYlagf k‘gmd\ fgl Z] [gfkljm]\ lg km__]kl l‘Yl l‘] =gf\k Yj] h]jkgfYd gZda_Ylagfk g^ l‘] kh][aYd lYphYq]jk, O‘] fYe]k g^ l‘] kh][aYd lYphYq]jk oal‘ j]kh][l lg l‘] hYj[]dk Yk k]l ^gjl‘ ‘]j]af ak kmZb][l lg [‘Yf_], O‘] Nh][aYd OYp ak fgl Y h]jkgfYd gZda_Ylagf g^ Yfq g^ l‘] gof]jk gj l‘] l]fYflk hYqaf_ Nh][aYd OYp]k, N]] yNK@>D<G MDNF A<>OJMNz ‘]j]af, O‘] =gf\k Yj] k][mj]\ kgd]dq Zq l‘] Nh][aYd OYp hd]\_]\ l‘]j]^gj] mf\]j l‘] Aak[Yd <_]fl <_j]]e]fl Yf\ l‘] ?aklja[l{k kgd] [gdd][lagf j]e]\q ak bm\a[aYd ^gj][dgkmj], Df\ana\mYd j]ka\]flk gof 6/2 k]hYjYl] lYpYZd] j]ka\]flaYd hYj[]dk oal‘af l‘] ?aklja[l ‘Ynaf_ Yf Y__j]_Yl] Ykk]kk]\ nYdm] g^ #6*/25*631*206 Yf\ Yj] j]khgfkaZd] ^gj l‘] hYqe]fl g^ YhhjgpaeYl]dq 60,1$ g^ l‘] YffmYd Nh][aYd OYp G]nq, 07 TABLE 8 CITY OF ENCINITAS COMMUNITY FACILITIES DISTRICT NO. 1 (ENCINITAS RANCH PUBLIC IMPROVEMENTS) SUMMARY OF SPECIAL TAX PAYERS(1) Tax Payer Parcel Count Commercial Acres Residential Units 2020-21 Assessed Value CFD Lien Value-to- Lien Ratio for CFD(2) 2020-21 Special Tax Percent of 2020-21 Special Tax @I>DIDO<N OJRI >@IO@M <NNJ>D<O@N D GG>’1(/5 04,62 .# 16*206*606 # 775*025 16,38/# /06*446 3,00$ K<>DAD>J @I>DIDO<N <K<MOH@ION GK /.,///.7 33*./4*130 5./*/3.56,38/7.*243 1,45 ?<TOJI CP?NJI >JMK /7,60 ./4*05.*52/142*642 22,48/25*.54 /,7/ CJH@ ?@KJO - R<GH<MO’2(/7,/4 ./6*426*443 12.*12/32,68/21*7/0 /,56 <G=@MONJIN DI>’2(/2,52 .7*75.*322 /54*//4 34,48/00*501 .,70 @I>DIDO<N KG<U<’2(1 1,55 .//*..6*417 /2.*.5/56,48//6*.51 .,52 JAAD>@ ?@KJO’2(/0,71 .2*7/2*30./.6*643 23,/8//2*.24 .,35 ><MO@M-RCDOR@M @IO@MKMDN@N GG>/0,60 .2*316*433 /.2*556 21,18//1*3/7 .,33 K@ONH<MO DI>’2(/0,43 .2*34/*/31 76*24/24,18//0*5.2 .,30 N@>JI? - K@KK@M K<MOI@MN 0 0,/..0*675*752 56*.37 15,/8//.*.5/.,2/ <><>D< B<NJGDI@ % ><M R<NC GG>//,33 .1*60.*...35*37.44,18/5*21/.,1. @I>DIDO<N OJRI >@IO@M <NNJ>D<O@N DDD GG>’1(//,3..0*.//*71.33*511 14,/8/5*/7/.,07 N<SJIT KG<>@ GG>/.,71 .1*173*643 12*347 76,08/2*24..,/6 O<E< GG>/.,70 .0*./3*171 12*/75 36,78/2*2/0 .,/6 H>?JI<G?N >JMK’2(/.,65 .0*./.*252 10*103 40,08/2*/5/.,/5 =MDIF@M M@NO<PM<IO >JMK /.,57 .0*2/0*345 07*131 60,08/1*565 .,/3 NO@GG<M @IO@MKMDN@N’2(/.,47 ./*570*221 03*415 47,78/1*1.6 .,/1 >gee]j[aYd OglYdk 14 50,/7 /.7 # /61*5/2*521 # 1*157*134 32,28/# 214*./3 /5,47 Naf_d] AYeadq M]ka\]flaYd OglYdk 6/2 .,..6/2 # 6/5*631*206 #/3*503*422 30,.8/#0*.06*763 60,1/ OglYd >A?63.50,/7 701 #/*../*346*/5/#/7*/.3*...30,28/#0*243*.../..,.. ’/(@p[dm\]k <_ja[mdlmjYd Kjgh]jlq* o‘a[‘ ‘Yk f]n]j Z]]f d]na]\ l‘] Nh][aYd OYp, ’0(@p[dm\]k gn]jdYhhaf_ \]Zl o‘a[‘ j]\m[]k l‘] nYdm]+lg+da]f jYlagk k‘gof af l‘ak OYZd] 6, N]] OYZd] 0 YZgn] ^gj Y \]k[jahlagf g^ l‘] \aj][l Yf\ gn]jdYhhaf_ \]Zl, ’1(@f[afalYk Ogof >]fl]j <kkg[aYl]k D GG>* @f[afalYk Ogof >]fl]j <kkg[aYl]k DDD GG> Yf\ @f[afalYk Ogof >]fl]j <kkg[aYl]k DQ GG> Yj] gof]\ Zq l‘j]] hYjlf]jk‘ahk o‘a[‘ [gfkakl g^ >YjdlYk >gehYfq* UMK @f[afalYk GG> Yf\ GYmd‘]j] M]Ydlq GK, ’2(OYphYq]j dakl]\ ak Y l]fYfl mf\]j Y dgf_+l]je d]Yk] Yf\ ak j]khgfkaZd] ^gj hYqe]fl g^ hjgh]jlq lYp]k mf\]j l‘] d]Yk] Y_j]]e]fl, O‘] gof]j g^ l‘] mf\]jdqaf_ hjgh]jlq ak gf] g^ l‘] @f[afalYk Ogof >]fl]j <kkg[aYl]k hYjlf]jk‘ahk, Ngmj[]8 N[gll <kkg[aYl]k 1. Df Aak[Yd T]Yj 0.0.+0/* l‘] >A? d]na]\ Y kh][aYd lYp gf 6/2 j]ka\]flaYd mfalk oal‘af l‘] Zgmf\Yja]k g^ l‘] >A? [gfkaklaf_ g^ 3.. kaf_d]+^Yeadq \]lY[‘]\ ‘ge]k* /7. \]lY[‘]\ [gf\geafamek Yf\ /02 YllY[‘]\ [gf\geafamek, N‘gof Z]dgo Yj] kmeeYja]k g^ Y[lmYd 0.0.+0/ hjgh]jlq lYp Zaddk ^gj l‘j]] \o]ddaf_ mfalk l‘Yl o]j] j]Ykk]kk]\ \m] lg gof]jk‘ah [‘Yf_]k af 0./., O‘] 0.0.+0/ <kk]kk]\ QYdm] \g]k fgl j]^d][l l‘] [mjj]fl HYjc]l QYdm]* Zml jYl‘]j l‘] ]k[YdYl]\ nYdm] g^ l‘] hjgh]jlq ^jge alk ZYk] q]Yj g^ 0.//, TABLE 9 CITY OF ENCINITAS COMMUNITY FACILITIES DISTRICT NO. 1 (ENCINITAS RANCH PUBLIC IMPROVEMENTS) SAMPLE TAX BILLS FOR 2020-21 Property Type Single Family Detached Detached Condo Attached Condo Cge] Nar] af Ni, Al,1*2/4 /*605 /*046 GYf\ QYdm]# 437*140 #043*6/6 #173*732 Dehjgn]e]fl QYdm]41/*665 3/3*217 /30*067 Cge]gof]jk @p]ehlagf .’5*...(’5*...( I]l OYpYZd] <kk]kk]\ QYdm]#/*07/*027 #552*035 #32/*021 OglYd OYp =add # /6*175 # /.*433 # 5*047 OglYd OYp MYl]/,20$/,16$/,12$ TAX BILL DETAIL Tax Description Tax Rate =<N@ O<S /,....$#/0*7/0,26 #5*520,34 #3*2/0,21 CD =JI? NDIDO<N PN?.,./7/024,02 /25,43 /.1,00 HDM< >JNO< >JHH >JGG .,./15 /55,07 /.4,1/52,1/ HR? ?-N .,..13 23,/7 05,/./6,71 Total Tax on Net Value $13,681.68 $8,203.78 $5,734.84 Fixed Charge Assessments >R< ROM <Q<DG<=DGDOT # /.,..# /.,..# /.,.. HJNLPDOJ NPMQ@DGG1,..1,..1,.. >N< /5 @H@M <H=PG NQ 10,06 10,06 10,06 <NNHO ?DNO 74+/.,..01,20 .,.. HR? ROM NO<I?=T >CMB //,3.//,3.//,3. G@P>, R<NO@R<O@M A@@ .,..121,46 .,.. @N? N@R@M N@MQD>@ >C<MB@ 7..,3..,..0..,22 GI?N>K@-GOB UI <-=->3,00 2,/6 2,/6 GI?N>K@-GOB UI C /..,..6.,...,.. Q@>OJM ?DN@<N@ >OMG 6,14 3,64 3,64 NA? 72+1 6..,..0/6,..0/6,.. @I>DIDO<N >A? "/0*622,7./*5/6,76 /*.26,34 Total Fixed Charge Assessments $ 4,715.76 $2,450.90 $1,533.82 Total Secured Property Tax Bill $18,397.44 $10,654.68 $7,268.66 Ngmj[]8 N[gll <kkg[aYl]k* Ykk]eZd]\ ^jge lYp Zaddk hj]hYj]\ Zq l‘] >gmflq g^ NYf ?a]_g Oj]Ykmj]j+OYp >gdd][lgj, 1/ SPECIAL RISK FACTORS Investment in the Bonds involves risks which may not be appropriate for certain investors. The following is a discussion of certain risk factors which should be considered, in addition to other matters set forth herein, in evaluating the investment quality of the 2021 Bonds. This discussion does not purport to be comprehensive or definite. The occurrence of one or more of the events discussed herein could adversely affect the ability or willingness of property owners in the District to pay their Special Taxes when due. Such failures to pay Special Taxes could result in the inability of the District to make full and punctual payments of debt service on the 2021 Bonds. In addition, the occurrence of one or more of the events discussed herein could adversely affect the value of the property in the District. Risks of Real Estate Secured Investments Generally O‘] Jof]jk g^ l‘] =gf\k oadd Z] kmZb][l lg l‘] jakck _]f]jYddq af[a\]fl lg Yf afn]kle]fl k][mj]\ Zq j]Yd ]klYl]* af[dm\af_* oal‘gml daealYlagf* ’a( Y\n]jk] [‘Yf_]k af dg[Yd eYjc]l [gf\alagfk* km[‘ Yk [‘Yf_]k af l‘] eYjc]l nYdm] g^ j]Yd hjgh]jlq af l‘] na[afalq g^ l‘] ?aklja[l* l‘] kmhhdq g^ gj \]eYf\ ^gj [geh]lalan] hjgh]jla]k af km[‘ Yj]Y* Yf\ l‘] eYjc]l nYdm] g^ j]ka\]flaYd hjgh]jlq gj Zmad\af_k Yf\-gj kal]k af l‘] ]n]fl g^ kYd] gj ^gj][dgkmj]9 ’aa( [‘Yf_]k af j]Yd ]klYl] lYp jYl]k Yf\ gl‘]j gh]jYlaf_ ]ph]fk]k* _gn]jfe]flYd jmd]k ’af[dm\af_* oal‘gml daealYlagf* rgfaf_ dYok Yf\ dYok j]dYlaf_ lg ]f\Yf_]j]\ kh][a]k Yf\ ‘YrYj\gmk eYl]jaYdk( Yf\ ^ak[Yd hgda[a]k9 Yf\ ’aaa( fYlmjYd \akYkl]jk ’af[dm\af_* oal‘gml daealYlagf* ]Yjl‘imYc]k* ^aj]k Yf\ ^dgg\k(* o‘a[‘ eYq j]kmdl af mfafkmj]\ dgkk]k, Ig YkkmjYf[] [Yf Z] _an]f l‘Yl l‘] af\ana\mYd ‘ge]gof]jk oadd hYq Nh][aYd OYp]k af l‘] ^mlmj] gj l‘Yl l‘]q oadd Z] YZd] lg hYq km[‘ Nh][aYd OYp]k gf Y lae]dq ZYkak, N]] yNK@>D<G MDNF A<>OJMN x =Yfcjmhl[q Yf\ Agj][dgkmj]z Z]dgo* ^gj Y \ak[mkkagf g^ []jlYaf daealYlagfk gf l‘] ?aklja[l{k YZadalq lg hmjkm] bm\a[aYd hjg[]]\af_k oal‘ j]kh][l lg \]dafim]fl hYj[]dk, Limited Obligations O‘] =gf\k Yf\ j]dYl]\ afl]j]kl Yj] fgl hYqYZd] ^jge l‘] _]f]jYd ^mf\k g^ l‘] >alq, @p[]hl oal‘ j]kh][l lg l‘] Nh][aYd OYp]k* f]al‘]j l‘] [j]\al fgj l‘] lYpaf_ hgo]j g^ l‘] ?aklja[l gj l‘] >alq ak hd]\_]\ ^gj l‘] hYqe]fl g^ hjaf[ahYd gj afl]j]kl g^ l‘] =gf\k* Yf\* ]p[]hl Yk hjgna\]\ af l‘] Aak[Yd <_]fl <_j]]e]fl* fg Jof]j g^ l‘] =gf\k eYq [geh]d l‘] ]p]j[ak] g^ Yfq lYpaf_ hgo]j Zq l‘] ?aklja[l gj l‘] >alq gj ^gj[] l‘] ^gj^]almj] g^ Yfq >alq gj ?aklja[l hjgh]jlq, O‘] hjaf[ahYd g^* hj]eame* a^ Yfq* Yf\ afl]j]kl gf l‘] =gf\k Yj] fgl Y \]Zl g^ l‘] >alq gj Y d]_Yd gj ]imalYZd] hd]\_]* [‘Yj_]* da]f gj ]f[meZjYf[] mhgf Yfq g^ l‘] >alq{k gj l‘] ?aklja[l{k hjgh]jlq gj mhgf Yfq g^ l‘] >alq{k gj l‘] ?aklja[l{k af[ge]* j][]ahlk gj j]n]fm]k* ]p[]hl l‘] Nh][aYd OYp]k Yf\ gl‘]j Yegmflk hd]\_]\ mf\]j l‘] Aak[Yd <_]fl <_j]]e]fl, Insufficiency of Special Tax Revenues Pf\]j l‘] MYl] Yf\ H]l‘g\* l‘] YffmYd Yegmfl g^ Nh][aYd OYp lg Z] d]na]\ gf ]Y[‘ lYpYZd] hYj[]d af l‘] ?aklja[l oadd _]f]jYddq Z] ZYk]\ gf o‘]l‘]j km[‘ hYj[]d ak [Yl]_gjar]\ Yk Pf\]n]dgh]\ Kjgh]jlq gj Yk ?]n]dgh]\ Kjgh]jlq Yf\ gf l‘] dYf\ mk] [dYkk lg o‘a[‘ Y hYj[]d g^ ?]n]dgh]\ Kjgh]jlq ak Ykka_f]\, N]] <KK@I?DS < x yM<O@ <I? H@OCJ? 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afn]kle]fl imYdalq g^ l‘] =gf\k, D^ Y hjgh]jlq gof]j \]^Ymdlk af l‘] hYqe]fl g^ Yf afklYdde]fl g^ Nh][aYd OYp]k* l‘] ?aklja[l{k gfdq j]e]\q ak lg bm\a[aYddq ^gj][dgk] l‘] da]f g^ l‘] Nh][aYd OYp]k gf l‘] \]dafim]fl hYj[]d, Kjgkh][lan] hmj[‘Yk]jk g^ l‘] =gf\k k‘gmd\ fgl Ykkme] l‘Yl l‘] hjgh]jlq oal‘af l‘] ?aklja[l [gmd\ Z] kgd\ ^gj l‘] Ykk]kk]\ nYdm]k \]k[jaZ]\ ‘]j]af Yl Y ^gj][dgkmj] kYd] ^gj \]dafim]fl Nh][aYd OYp]k gj ^gj Yf Yegmfl Y\]imYl] lg hYq \]dafim]fl Nh][aYd OYp]k, N]] yN@>PMDOT AJM OC@ =JI?N w >gn]fYfl ^gj Nmh]jagj >gmjl Agj][dgkmj]z Yf\ y+ Kjgh]jlq <kk]kk]\QYdm]k,z<dkg*hjgh]jlqnYdm]kYj]fgl ]n]fdq\akljaZml]\l‘jgm_‘gml l‘]?aklja[l,O‘ak\akhYjalqg^ nYdm]k Y[jgkk l‘] ?aklja[l ak ka_fa^a[Yfl Z][Ymk]* Yk e]flagf]\ YZgn]* a^ hjgh]jlq gof]jk Z][ge] \]dafim]fl af l‘] hYqe]fl g^ Nh][aYd OYp]k* l‘] ?aklja[l{k gfdq j]e]\q ak lg ^gj][dgk] Y_Yafkl \]dafim]fl hYj[]dk, N]] yN@>PMDOT AJM OC@ =JI?N + Kjgh]jlq <kk]kk]\ QYdm]kz Yf\ y+ ?aj][l Yf\ Jn]jdYhhaf_ ?]Zl,z Reduction of Assessed Values O‘] >alq \g]k fgl eYc] Yfq j]hj]k]flYlagf Yk lg o‘]l‘]j l‘] Ykk]kk]\ nYdm] g^ hjgh]jlq af l‘] ?aklja[l gj l‘] nYdm]+lg+da]f jYlagk ^gj km[‘ hjgh]jlq oadd j]eYaf Yl l‘] Ykk]kk]\ nYdm]k gj l‘] jYlagk \ak[mkk]\ af l‘ak J^^a[aYd NlYl]e]fl, O‘] Ykk]kk]\ nYdm]k g^ hjgh]jlq af l‘] ?aklja[l* Yk \ak[mkk]\ ‘]j]af* Yj] ^jge l‘] >gmflq <kk]kkgj{k Ykk]kke]fl jgdd ^gj ^ak[Yd q]Yj 0.0.+0/ ’Yk g^ l‘] EYfmYjq /* 0.0. da]f \Yl](, O‘]k] Ykk]kk]\ nYdm]k j]hj]k]fl l‘] >gmflq <kk]kkgj{k \]l]jeafYlagf g^ l‘] y^mdd [Yk‘ nYdm]z g^ hjgh]jlq af l‘] ?aklja[l, KmjkmYfl lg l‘] >Yda^gjfaY >gfklalmlagf* l‘] ^mdd [Yk‘ nYdm] g^ hjgh]jlq eYq j]^d][l ^jge q]Yj lg q]Yj l‘] af^dYlagfYjq jYl] fgl lg ]p[]]\ log h]j[]fl ^gj Yfq _an]f q]Yj gj j]\m[lagf Yk k‘gof af l‘] [gfkme]j hja[] af\]p gj [gehYjYZd] \YlY ^gj l‘] Yj]Y mf\]j lYpaf_ bmjak\a[lagf* gj eYq Z] j]\m[]\ lg j]^d][l kmZklYflaYd \YeY_]* \]kljm[lagf gj gl‘]j ^Y[lgjk [Ymkaf_ Y \][daf] af nYdm], KmjkmYfl lg jmd]k g^ l‘] >Yda^gjfaY NlYl] =gYj\ g^ @imYdarYlagf l‘Yl _gn]jf 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l‘Yl af ]klaeYlaf_ nYdm]* l‘] Ykk]kkgj k‘Ydd [gfka\]j gf] gj egj] nYdmYlagf YhhjgY[‘]k* af[dm\af_ l‘] [gehYjYlan] kYd]k YhhjgY[‘* o‘a[‘ ak l‘] hj]^]jj]\ e]l‘g\ g^ nYdmYlagf, O‘] jmd] ^mjl‘]j hjgna\]k l‘Yl o‘]f j]daYZd] eYjc]\ \YlY Yj] YnYadYZd]* l‘] hj]^]jj]\ e]l‘g\ g^ nYdmYlagf ak Zq j]^]j]f[] lg kYd]k hja[]k, <[[gj\af_dq* l‘] Ykk]kk]\ nYdm]k g^ l‘] hjgh]jlqaf l‘]?aklja[l [gmd\ Z] j]\m[]\a^ kYd]k hja[]k g^ hjgh]jlq af l‘] ?aklja[l \][daf], M][]fl j]hgjlk Zq j]Yd ]klYl] af\mkljq j]hgjlaf_ k]jna[]k af\a[Yl] l‘Yl ‘ge] kYd]k hja[]k Yj] \][dafaf_ af kge] hYjlk g^ Ngml‘]jf >Yda^gjfaY, D^ l‘] >gmflq <kk]kkgj \]l]jeaf]k l‘Yl kYd]k hja[]k ^gj j]ka\]flaYd hjgh]jlq gj gl‘]j hjgh]jlq af l‘] ?aklja[l ‘Yn] \][daf]\ kaf[] EYfmYjq /* 0.0.* l‘] >gmflq <kk]kkgj [gmd\ j]\m[] Ykk]kk]\ nYdm]k g^ hjgh]jlq af l‘] ?aklja[l ^gj ^ak[Yd q]Yj 0.0/+00, <dkg* ‘ge]gof]jk af l‘] ?aklja[l o‘g h]j[]an] l‘Yl l‘]aj hjgh]jlq oadd k]dd ^gj d]kk l‘Yf [mjj]fl Ykk]kk]\ nYdm]* eYq afalaYl] klYlmlgjq Ykk]kke]fl Yhh]Ydk af Yf ]^^gjl lg ‘Yn] l‘] Ykk]kk]\ nYdm] g^ l‘]aj hjgh]jlq j]\m[]\, O‘] >gmflq <kk]kkgj{k Ykk]kk]\ nYdm]k eYq fgl j]^d][l l‘] Y[lmYd eYjc]l nYdm] g^ hjgh]jlq af l‘] ?aklja[l ’],_,* ‘ge]k af l‘] ?aklja[l ea_‘l k]dd ^gj egj] gj d]kk l‘Yf l‘] >gmflq <kk]kkgj{k Ykk]kk]\ nYdm](, O‘] ?aklja[l \g]k fgl afl]f\ lg ‘Yn] Yf YhhjYakYd hj]hYj]\ lg ]klaeYl] l‘] eYjc]l nYdm] g^ Yfq hjgh]jlq af l‘] ?aklja[l, Depletion of Reserve Fund Df gj\]j lg hYq \]Zl k]jna[] gf l‘] =gf\k* al ak f][]kkYjq l‘Yl l‘] Nh][aYd OYp d]na]\ oal‘af l‘] ?aklja[l Z] hYa\ af Y lae]dq eYff]j, N‘gmd\ l‘] Nh][aYd OYp fgl Z] hYa\ gf lae]* l‘] ?aklja[l ‘Yk ]klYZdak‘]\ Y M]k]jn] Amf\ oal‘ j]kh][l lg l‘] =gf\k af l‘] afalaYd Yegmfl kh][a^a]\ mf\]j l‘] ‘]Y\af_ yOC@ M@API?DIB KGalq ‘Yk [gn]fYfl]\ lg eYaflYaf af l‘] M]k]jn] Amf\ Yf Yegmfl ]imYd lg l‘] M]k]jn] M]imaj]e]fl* oal‘ l‘] kgd] kgmj[] g^ egf]qk lg j]hd]fak‘ l‘] M]k]jn] Amf\ Z]af_ Nh][aYd OYp M]n]fm]k [gdd][l]\ l‘Yl Yj] af ]p[]kk g^ =gf\ \]Zl k]jna[] Yf\ <\eafakljYlan] @ph]fk]k, N]] <hh]f\ap ? ‘]j]lg, D^ Y km^^a[a]fl fmeZ]j g^ hjgh]jlq gof]jk af l‘] ?aklja[l Yj] \]dafim]fl af l‘] hYqe]fl g^ l‘] Nh][aYd OYp* l‘] >alq eYq Z] mfYZd] lg j]hd]fak‘ l‘] M]k]jn] Amf\ lg l‘] M]k]jn] M]imaj]e]fl, D^ km[‘ \]^Ymdlk o]j] lg [gflafm] af km[[]kkan] q]Yjk* l‘] M]k]jn] Amf\ ogmd\ kggf Z] \]hd]l]\ Yf\ Y \]^Ymdl gf l‘] =gf\k ogmd\ g[[mj, Insufficiency of Foreclosure Sale Proceeds O‘] >alq ‘Yk [gn]fYfl]\ lg afklalml] ^gj][dgkmj] hjg[]]\af_k lg k]dd l‘] hjgh]jlq oal‘ \]dafim]fl Nh][aYd OYp]k af gj\]j lg gZlYaf ^mf\k lg hYq \]Zl k]jna[] gf l‘] =gf\k* kmZb][l lg l‘] daealYlagfk k]l ^gjl‘ af l‘] Aak[Yd <_]fl <_j]]e]fl, D^ ^gj][dgkmj] hjg[]]\af_k o]j] ]n]j afklalml]\* Yfq egjl_Y_] gj \]]\ g^ ljmkl ‘gd\]j oal‘ j]kh][l lg Y \]]\ g^ ljmkl gf hjgh]jlq oal‘af l‘] ?aklja[l [gmd\* Zml ogmd\ fgl Z] j]imaj]\ lg* Y\nYf[] l‘] Yegmfl g^ \]dafim]fl Nh][aYd OYp]k lg hjgl][l alk k][mjalq afl]j]kl, N]] yN@>PMDOT AJM OC@ =JI?N w >gn]fYfl ^gj Nmh]jagj >gmjl Agj][dgkmj]z ^gj hjgnakagfk o‘a[‘ Yhhdq af l‘] 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Assessments Kjgh]jlq oal‘af l‘] ?aklja[l ak kmZb][l lg lYp]k Yf\ Ykk]kke]flk aehgk]\ Zq hmZda[ Y_]f[a]k gl‘]j l‘Yf l‘] ?aklja[l gj l‘] >gmflq l‘Yl Ydkg ‘Yn] bmjak\a[lagf gn]j l‘] dYf\ oal‘af l‘] ?aklja[l, N]] yN@>PMDOT AJM OC@ =JI?N + ?aj][l Yf\ Jn]jdYhhaf_ ?]Zl,z O‘] Nh][aYd OYp]k Yf\ Yfq h]fYdla]k Yf\ afl]j]kl l‘]j]gf oadd [gfklalml] Y da]f mhgf l‘] dglk Yf\ hYj[]dk g^ dYf\ af l‘] ?aklja[l mhgf o‘a[‘ l‘] Nh][aYd OYp]k oadd YffmYddq Z] d]na]\ mflad l‘]q Yj] hYa\, Nm[‘ da]f ak gf Y hYjalq oal‘ kh][aYd lYp]k Yf\ kh][aYd Ykk]kke]flk d]na]\ Zq gl‘]j Y_]f[a]k Yf\ ak [g]imYd lg Yf\ af\]h]f\]fl g^ l‘] da]f ^gj _]f]jYd hjgh]jlq lYp]k j]_Yj\d]kk g^ o‘]f l‘]q Yj] aehgk]\ mhgf l‘] kYe] hjgh]jlq, O‘] Nh][aYd OYp]k ‘Yn] hjagjalq gn]j Ydd ]paklaf_ Yf\ ^mlmj] hjanYl] da]fk aehgk]\ gf hjgh]jlq af l‘] ?aklja[l, O‘] ?aklja[l ‘Yk fg [gfljgd* ‘go]n]j* gn]j l‘] YZadalq g^ gl‘]j Y_]f[a]k Yf\ \aklja[lk lg af[mj af\]Zl]\f]kk k][mj]\ Zq kh][aYd lYp]k gj Ykk]kke]flk hYqYZd] ^jge Ydd gj Y hgjlagf g^ l‘] hjgh]jlq af l‘] ?aklja[l, <fq km[‘ kh][aYd lYp]k gj Ykk]kke]flk oadd Z] k][mj]\ Zq Y da]f gf km[‘ hjgh]jlq gf Y hYjalq oal‘ l‘] da]f g^ l‘] Nh][aYd OYp]k Yf\ Yfq h]fYdla]k Yf\ afl]j]kl l‘]j]gf, Special Tax Delinquencies Pf\]j hjgnakagfk g^ l‘] <[l* l‘] Nh][aYd OYp]k* ^jge o‘a[‘ ^mf\k f][]kkYjq ^gj l‘] hYqe]fl g^ hjaf[ahYd g^* Yf\ afl]j]kl gf* l‘] =gf\k Yj] \]jan]\* oadd Z] Zadd]\ lg l‘] hjgh]jla]k af l‘] ?aklja[l gf l‘] j]_mdYj hjgh]jlq lYp Zaddk k]fl lg gof]jk g^ km[‘ hjgh]jla]k, O‘] Nh][aYd OYp afklYdde]flk Yj] \m] Yf\ hYqYZd] gf l‘] kYe] \Yl]k* Yf\ Z]Yj l‘] kYe] h]fYdla]k Yf\ afl]j]kl ^gj fgf+hYqe]fl* Yk _]f]jYd Y\ nYdgj]e hjgh]jlq lYp afklYdde]flk, Nh][aYd OYp afklYdde]flk [Yffgl Z] hYa\ k]hYjYl]dq ^jge _]f]jYd Y\ nYdgj]e hjgh]jlq lYp hYqe]flk, O‘]j]^gj]* l‘] mfoaddaf_f]kk gj afYZadalq g^ Y hjgh]jlq gof]j lg hYq _]f]jYd hjgh]jlq lYp Zaddk* Yk ]na\]f[]\ Zq hjgh]jlq lYp \]dafim]f[a]k* eYq Ydkg af\a[Yl] Yf mfoaddaf_f]kk gj afYZadalq lg eYc] _]f]jYd hjgh]jlq lYp hYqe]flk Yf\ Nh][aYd OYp afklYdde]fl hYqe]flk af l‘] ^mlmj], O‘] lglYd Yegmfl g^ Nh][aYd OYp]k d]na]\ gf hjgh]jlq af l‘] ?aklja[l ^gj ^ak[Yd q]Yj 0.0.+0/ oYk #0*243*..., <k g^ Emf] 1.* 0.0/* l‘] Yegmfl \]dafim]fl oYk #5*175 ^gj Y \]dafim]f[q jYl] g^ .,1.$, O‘] Y__j]_Yl] Nh][aYd OYp d]nq gf hjgh]jlq af l‘] ?aklja[l ^gj ^ak[Yd q]Yj 0./7+0. oYk #0*16.*..., <k g^ Emf] 1.* 0.0/* l‘] Yegmfl j]eYafaf_ \]dafim]fl oYk #1*632 ^gj Y \]dafim]f[q jYl] g^ .,/4$, <dd Nh][aYd OYp]k d]na]\ af lYp q]Yjk hjagj lg ^ak[Yd q]Yj 0./7+0. ‘Yn] Z]]f hYa\, N]] yOC@ >JHHPIDOT A<>DGDOD@N ?DNOMD>O <I? NK@>D<G O<S M@Q@IP@N w Nh][aYd OYp G]na]kYf\>gdd][lagfk,zN]]YdkgyN@>PMDOTAJMOC@=JI?NwM]k]jn]Amf\zYf\y+>gn]fYfl ^gjNmh]jagj >gmjl Agj][dgkmj]*z ^gj Y \ak[mkkagf g^ l‘] gZda_Ylagfk g^ l‘] ?aklja[l af l‘] ]n]fl g^ \]dafim]f[q af l‘] hYqe]fl g^ Nh][aYd OYp afklYdde]flk, Disclosures to Future Purchasers of Land O‘] ?aklja[l ‘Yk j][gj\]\ Y fgla[] g^ l‘] da]f g^ l‘] Nh][aYd OYp]k ^gj l‘] ?aklja[l af l‘] J^^a[] g^ l‘] >gmflqM][gj\]j g^l‘]>gmflq,Oald]afkmjYf[][gehYfa]kfgjeYddqj]^]jlgkm[‘fgla[]kaflald]afkmjYf[]j]hgjlk, Cgo]n]j* l‘]j] [Yf Z] fg _mYjYfl]] l‘Yl km[‘ j]^]j]f[] oadd Z] eY\] gj* a^ eY\]* l‘Yl Y hjgkh][lan] hmj[‘Yk]j g^ hjgh]jlq af l‘] ?aklja[l gj Y d]f\]j oadd [gfka\]j km[‘ Nh][aYd OYp gZda_Ylagf af l‘] hmj[‘Yk] g^ km[‘ hjgh]jlq gj l‘] d]f\af_ g^ egf]q, AYadmj] lg \ak[dgk] l‘] ]pakl]f[] g^ l‘] Nh][aYd OYp]k gj l‘] ^mdd Yegmfl g^ l‘] \]Zl gf l‘] hjgh]jlq af l‘] ?aklja[l eYq Y^^][l l‘] YZadalq Yf\ oaddaf_f]kk g^ ^mlmj] gof]jk g^ dYf\ af l‘] ?aklja[l lg hYq l‘] Nh][aYd OYp]k o‘]f \m], O‘] <[l j]imaj]k l‘] kmZ\ana\]j ’gj alk Y_]fl gj j]hj]k]flYlan]( g^ Y kmZ\anakagf lg fgla^q Y hjgkh][lan] hmj[‘Yk]j gj dgf_+l]je d]kkgj g^ Yfq dgl* hYj[]d gj mfal kmZb][l lg Y H]ddg+Mggk kh][aYd lYp g^ l‘] ]pakl]f[] Yf\ eYpaeme Yegmfl g^ km[‘ kh][aYd lYp mkaf_ Y klYlmlgjadq hj]k[jaZ]\ ^gje, >Yda^gjfaY >anad >g\] N][lagf //.0,4Z j]imaj]k l‘Yl af l‘] [Yk] g^ ljYfk^]jk gl‘]j l‘Yf l‘gk] [gn]j]\ Zq l‘] YZgn] j]imaj]e]fl* l‘] k]dd]j emkl Yl d]Ykl eYc] Y _gg\ ^Yal‘]^^gjl lgfgla^ql‘] hjgkh][lan] hmj[‘Yk]jg^ l‘] kh][aYd lYpda]f af Y ^gjeYl hj]k[jaZ]\ ZqklYlml], AYadmj] Zq Yf gof]j g^ l‘] hjgh]jlq lg [gehdq oal‘ l‘] YZgn] j]imaj]e]flk* gj ^Yadmj] Zq Y hmj[‘Yk]j gj d]kkgj lg [gfka\]j gj mf\]jklYf\ l‘] fYlmj] Yf\ ]pakl]f[] g^ l‘] Nh][aYd OYp* [gmd\ Y\n]jk]dq Y^^][l l‘] oaddaf_f]kk Yf\ YZadalq g^ l‘] hmj[‘Yk]j gj d]kkgj lg hYq l‘] Nh][aYd OYp o‘]f \m], 13 Payment of Special Taxes O‘] d]nq g^ kh][aYd lYp]k [Yf j]kmdl af Y ka_fa^a[Yfldq _j]Yl]j hjgh]jlq lYp Zmj\]f Z]af_ aehgk]\ mhgf hjgh]jla]k oal‘af Y [geemfalq ^Y[adala]k \aklja[l l‘Yf af gl‘]j Yj]Yk g^ Y [alq gj [gmflq* Yf\ l‘ak Y\\]\ Zmj\]f [Yf j]kmdl af hjgZd]ek af l‘] [gdd][lagf g^ l‘]kh][aYd lYp]k,Df kge] [geemfalq^Y[adala]k \aklja[lk* l‘] hjgh]jlqgof]jk ‘Yn] j]^mk]\ lg hYq l‘] kh][aYd lYp]k Yf\ ‘Yn] [gee]f[]\ dala_Ylagf [‘Ydd]f_af_ l‘] kh][aYd lYp]k* l‘] ]klYZdak‘e]fl g^ l‘] ?aklja[l Yf\ l‘] Zgf\k akkm]\ Zq l‘] ?aklja[l, O‘] Nh][aYd OYp]k* ^jgeo‘a[‘ ^mf\k f][]kkYjq^gj l‘]hYqe]fl g^ hjaf[ahYd g^* Yf\ afl]j]kl gf* l‘] =gf\k Yj] \]jan]\* oadd Z] Zadd]\ lg l‘] hjgh]jla]k af l‘] ?aklja[l gf l‘] j]_mdYj hjgh]jlq lYp Zaddk k]fl lg gof]jk g^ km[‘ hjgh]jla]k,Nh][aYdOYpafklYdde]flkYj]\m]Yf\hYqYZd]*Yf\Z]Yjl‘]kYe]h]fYdla]kYf\afl]j]kl^gjfgf+hYqe]fl* Yk\gj]_mdYjhjgh]jlqlYpafklYdde]flk,Nh][aYdOYpafklYdde]flhYqe]flk[Yffgl Z]eY\]k]hYjYl]dq^jgehjgh]jlq lYp hYqe]flk, O‘]j]^gj]* l‘] mfoaddaf_f]kk gj afYZadalq g^ Y hjgh]jlq gof]j lg hYq j]_mdYj hjgh]jlq lYp Zaddk* Yk ]na\]f[]\ Zq hjgh]jlq lYp \]dafim]f[a]k* eYq Ydkg af\a[Yl] Yf mfoaddaf_f]kk gj afYZadalq lg eYc] j]_mdYj hjgh]jlq lYp hYqe]flk Yf\ Nh][aYd OYp afklYdde]fl hYqe]flk af l‘] ^mlmj], N]] yOC@ >JHHPIDOT A<>DGDOD@N ?DNOMD>O <I? NK@>D<G O<S M@Q@IP@N + yCaklgja[Yd G]na]k Yf\ OYp ?]dafim]f[a]kz, <f gof]j g^ Y lYpYZd] hYj[]d ak fgl h]jkgfYddq gZda_Yl]\ lg hYq l‘] Nh][aYd OYp]k o‘a[‘ Yj] d]na]\ gf ‘ak gj ‘]j hYj[]d, MYl‘]j* l‘] Nh][aYd OYp]k Yj] Yf gZda_Ylagf o‘a[‘ ak k][mj]\ gfdq Zq Y da]f mhgf l‘] lYpYZd] hYj[]d, D^ l‘] nYdm] g^ Y lYpYZd] hYj[]d ak fgl km^^a[a]fl* lYcaf_ aflg Y[[gmfl gl‘]j da]fk aehgk]\ Zq hmZda[ Y_]f[a]k* lg ^mddq k][mj] l‘] Nh][aYd OYp]k* l‘] ?aklja[l ‘Yk fg j][gmjk] Y_Yafkl l‘] gof]j, N]] yN@>PMDOT AJM OC@ =JI?N w M]k]jn] Amf\z Yf\ y+ >gn]fYfl ^gj Nmh]jagj >gmjl Agj][dgkmj]*z ^gj Y \ak[mkkagf g^ l‘] gZda_Ylagfk g^ l‘] ?aklja[l af l‘] ]n]fl g^ \]dafim]f[q af l‘] hYqe]fl g^ Nh][aYd OYp afklYdde]flk, O‘] YZadalq g^ l‘] ?aklja[l lg af[j]Yk] l‘] Yegmfl g^ Nh][aYd OYp]k o‘a[‘ eYq Z] d]na]\ Yf\ lg hYq [gklk g^ ^gj][dgkmj] hjg[]]\af_k eYq Z] daeal]\ Zq ngl]j afalaYlan], N]] y>gfklalmlagfYd <e]f\e]flz Yf\ yGaealYlagfk gf M]e]\a]kz Z]dgo, Bankruptcy O‘] hYqe]fl g^ hjgh]jlq gof]jk{ lYp]k Yf\ l‘] YZadalq 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l‘Yl Yj] j]imaj]\ lg hj]hYj] []jla^a]\ ^afYf[aYd klYl]e]flk gj ^ad]^afYf[aYd klYl]e]flkoal‘[]jlYaf j]_mdYlgjqgj _gn]jfe]flYdY_]f[a]k eYqZ] j]imaj]\lg j][g_far]af[ge]* _Yaf Yf\ dgkk oal‘ j]kh][l lg l‘] 0.0/ =gf\k Yl l‘] lae] l‘Yl km[‘ af[ge]* _Yaf gj dgkk ak j][g_far]\ gf km[‘ ^afYf[aYd klYl]e]flk afkl]Y\ g^ mf\]j l‘] jmd]k \]k[jaZ]\ Z]dgo, Kjgkh][lan] afn]klgjk k‘gmd\ [gfkmdl l‘]aj gof lYp Y\nakgjk af \]l]jeafaf_ l‘] P,N, ^]\]jYd* klYl]* dg[Yd gj fgf+P,N, lYp [gfk]im]f[]k lg l‘]e ^jge l‘] hmj[‘Yk]* gof]jk‘ah Yf\ \akhgkalagf g^ l‘] 0.0/ =gf\k af da_‘l g^ l‘]aj hYjla[mdYj [aj[meklYf[]k, U.S. Holders Interest, Dfl]j]kl gf l‘] 0.0/ =gf\k _]f]jYddq oadd Z] lYpYZd]lg Y P,N, Cgd\]j Yk gj\afYjq afl]j]kl af[ge] Yl l‘] lae] km[‘ Yegmflk Yj] Y[[jm]\ gj j][]an]\* af Y[[gj\Yf[] oal‘ l‘] P,N, Cgd\]j{k e]l‘g\ g^ Y[[gmflaf_ ^gj P,N, ^]\]jYd af[ge] lYp hmjhgk]k, Og l‘] ]pl]fl l‘Yl l‘] akkm] hja[] g^ Yfq eYlmjalq g^ l‘] 0.0/ =gf\k ak d]kk l‘Yf l‘] Yegmfl lg Z] hYa\ Yl eYlmjalq g^ km[‘ 0.0/ =gf\k ’]p[dm\af_ Yegmflk klYl]\ lg Z] afl]j]kl Yf\ hYqYZd] Yl d]Ykl YffmYddq gn]j l‘] l]je g^ km[‘ 0.0/ =gf\k( Zq egj] l‘Yf Y \] eafaeak Yegmfl* l‘] \a^^]j]f[] eYq [gfklalml] gja_afYd akkm] \ak[gmfl ’yJD?z(, P,N, Cgd\]jk g^ l‘] 0.0/ =gf\k oadd Z] j]imaj]\ lg af[dm\] JD? af af[ge] ^gj P,N, ^]\]jYd af[ge] lYp hmjhgk]k Yk al Y[[jm]k* af Y[[gj\Yf[] oal‘ Y [gfklYfl qa]d\ e]l‘g\ ZYk]\ gf Y [gehgmf\af_ g^ afl]j]kl ’o‘a[‘ eYq Z] Z]^gj] l‘] j][]ahl g^ [Yk‘ hYqe]flk YlljaZmlYZd] lg km[‘ af[ge](, Pf\]j l‘ak e]l‘g\* P,N, Cgd\]jk _]f]jYddq oadd Z] j]imaj]\ lg af[dm\] af af[ge] af[j]Ykaf_dq _j]Yl]j Yegmflk g^ JD? af km[[]kkan] Y[[jmYd h]jag\k, 22 hmj[‘Yk]\ ^gj Yf Yegmfl af ]p[]kk g^ l‘] hjaf[ahYd Yegmfl hYqYZd] Yl eYlmjalq ’gj* af kge] [Yk]k* Yl l‘]aj ]Yjda]j [Ydd \Yl]( oadd Z] lj]Yl]\ Yk akkm]\ Yl Y hj]eame, < P,N, Cgd\]j g^ Y =gf\ akkm]\ Yl Y hj]eame eYq eYc] Yf ]d][lagf* Yhhda[YZd] lg Ydd \]Zl k][mjala]k hmj[‘Yk]\ Yl Y hj]eame Zq km[‘ P,N, Cgd\]j* lg Yegjlar] km[‘ hj]eame* mkaf_ Y [gfklYfl qa]d\ e]l‘g\ gn]j l‘] l]je g^ km[‘ =gf\, NYd] gj Jl‘]j OYpYZd] ?akhgkalagf g^ l‘] =gf\k, Pfd]kk Y fgfj][g_falagf hjgnakagf g^ l‘] >g\] Yhhda]k* l‘] kYd]* ]p[‘Yf_]* j]\]ehlagf* j]laj]e]fl ’af[dm\af_ hmjkmYfl lg Yf g^^]j Zq l‘] >alq( gj gl‘]j \akhgkalagf g^ Y =gf\ oadd Z] Y lYpYZd] ]n]fl ^gj P,N, ^]\]jYd af[ge] lYp hmjhgk]k, Df km[‘ ]n]fl* af _]f]jYd* Y P,N, Cgd\]j g^ Y =gf\ oadd j][g_far] _Yaf gj dgkk ]imYd lg l‘] \a^^]j]f[] Z]lo]]f ’a( l‘] Yegmfl g^ [Yk‘ hdmk l‘] ^Yaj eYjc]l nYdm] g^ hjgh]jlq j][]an]\ ’]p[]hl lg l‘] ]pl]fl YlljaZmlYZd] lg Y[[jm]\ Zml mfhYa\ afl]j]kl gf l‘] =gf\* o‘a[‘ oadd Z] lYp]\ af l‘] eYff]j \]k[jaZ]\ YZgn]( Yf\ ’aa( l‘] P,N, Cgd\]j{k Y\bmkl]\ P,N, ^]\]jYd af[ge] lYp ZYkak af l‘] =gf\ ’_]f]jYddq* l‘] hmj[‘Yk] hja[] hYa\ Zq l‘] P,N, Cgd\]j ^gj l‘] =gf\* \][j]Yk]\ Zq Yfq Yegjlar]\ hj]eame* Yf\ af[j]Yk]\ Zq l‘] Yegmfl g^ Yfq JD? hj]nagmkdq af[dm\]\ af af[ge] Zq km[‘ P,N, Cgd\]j oal‘ j]kh][l lg km[‘ =gf\(, <fq km[‘ _Yaf gj dgkk _]f]jYddq oadd Z] [YhalYd _Yaf gj dgkk, Df l‘] [Yk] g^ Y fgf+[gjhgjYl] P,N, Cgd\]j g^ l‘] =gf\k* l‘] eYpaeme eYj_afYd P,N, ^]\]jYd af[ge] lYp jYl] Yhhda[YZd] lg Yfq km[‘ _Yaf oadd Z] dgo]j l‘Yf l‘] eYpaeme eYj_afYd P,N, ^]\]jYd af[ge] lYp jYl] Yhhda[YZd] lg gj\afYjq af[ge] a^ km[‘ P,N, ‘gd\]j{k ‘gd\af_ h]jag\ ^gj l‘] 0.0/ =gf\k ]p[]]\k gf] q]Yj, O‘] \]\m[laZadalq g^ [YhalYd dgkk]k ak kmZb][l lg daealYlagfk, ?]^]YkYf[] g^ l‘] =gf\k, D^ l‘] ?aklja[l \]^]Yk]k Yfq =gf\* l‘] =gf\ eYq Z] \]]e]\ lg Z] j]laj]\ ^gj P,N, ^]\]jYd af[ge] lYp hmjhgk]k Yk Y j]kmdl g^ l‘] \]^]YkYf[], Df l‘Yl ]n]fl* af _]f]jYd* Y ‘gd\]j oadd j][g_far] lYpYZd] _Yaf gj dgkk ]imYd lg l‘] \a^^]j]f[] Z]lo]]f ’a( l‘] Yegmfl j]Ydar]\ ^jge l‘] \]]e]\ kYd]* ]p[‘Yf_] gj j]laj]e]fl ’d]kk Yfq Y[[jm]\ imYda^a]\ klYl]\ afl]j]kl o‘a[‘ oadd Z] lYpYZd] Yk km[‘( Yf\ ’aa( l‘] ‘gd\]j{k Y\bmkl]\ lYp ZYkak af l‘] =gf\, Df^gjeYlagf M]hgjlaf_ Yf\ =Y[cmh Ral‘‘gd\af_, KYqe]flk gf l‘] 0.0/ =gf\k _]f]jYddq oadd Z] kmZb][l lg P,N, af^gjeYlagf j]hgjlaf_ Yf\ hgkkaZdq lg yZY[cmh oal‘‘gd\af_,z Pf\]j N][lagf 12.4 g^ l‘] >g\] Yf\ Yhhda[YZd] P,N, Oj]Ykmjq M]_mdYlagfk akkm]\ l‘]j]mf\]j* Y fgf+[gjhgjYl] P,N, Cgd\]j g^ l‘] 0.0/ =gf\k eYq Z] kmZb][l lg ZY[cmh oal‘‘gd\af_ Yl l‘] [mjj]fl jYl] g^ 02$ oal‘ j]kh][l lg yj]hgjlYZd] hYqe]flk*z o‘a[‘ af[dm\] afl]j]kl hYa\ gf l‘] 0.0/ =gf\k Yf\ l‘] _jgkk hjg[]]\k g^ Y kYd]* ]p[‘Yf_]* j]\]ehlagf* j]laj]e]fl gj gl‘]j \akhgkalagf g^ l‘] =gf\k, O‘] hYqgj oadd Z] j]imaj]\ lg \]\m[l Yf\ oal‘‘gd\ l‘] hj]k[jaZ]\ Yegmflk a^ ’a( l‘] hYq]] ^Yadk lg ^mjfak‘ Y P,N, lYphYq]j a\]fla^a[Ylagf fmeZ]j ’yODIz( lg l‘] hYqgj af l‘] eYff]j j]imaj]\* ’aa( l‘] DMN fgla^a]k l‘] hYqgj l‘Yl l‘] ODI ^mjfak‘]\ Zq l‘] hYq]] ak af[gjj][l* ’aaa( l‘]j] ‘Yk Z]]f Y yfgla^a]\ hYq]] mf\]jj]hgjlaf_z \]k[jaZ]\ af N][lagf 12.4’[( g^ l‘] >g\] gj ’an( l‘] hYq]] ^Yadk lg []jla^q mf\]j h]fYdlq g^ h]jbmjq l‘Yl l‘] hYq]] ak fgl kmZb][l lg oal‘‘gd\af_ mf\]j N][lagf 12.4’Y(’/(’>( g^ l‘] >g\], <egmflk oal‘‘]d\ mf\]j l‘] ZY[cmh oal‘‘gd\af_ jmd]k eYq Z] j]^mf\]\ gj [j]\al]\ Y_Yafkl l‘] P,N, Cgd\]j{k ^]\]jYd af[ge] lYp daYZadalq* a^ Yfq* hjgna\]\ l‘Yl l‘] j]imaj]\ af^gjeYlagf ak lae]dq ^mjfak‘]\ lg l‘] DMN, >]jlYaf P,N, ‘gd\]jk ’af[dm\af_ Yegf_ gl‘]jk* [gjhgjYlagfk Yf\ []jlYaf lYp+]p]ehl gj_YfarYlagfk( Yj] fgl kmZb][l lg ZY[cmh oal‘‘gd\af_, < ‘gd\]j{k ^Yadmj] lg [gehdq oal‘ l‘] ZY[cmh oal‘‘gd\af_ jmd]k eYq j]kmdl af l‘] aehgkalagf g^ h]fYdla]k Zq l‘] DMN, Non-U.S. Holders Interest, NmZb][l lg l‘] \ak[mkkagfk Z]dgo mf\]j l‘] ‘]Y\af_k yDf^gjeYlagf M]hgjlaf_ Yf\ =Y[cmh Ral‘‘gd\af_z Yf\ yAgj]a_f <[[gmfl OYp >gehdaYf[] <[l*z hYqe]flk g^ hjaf[ahYd g^* Yf\ afl]j]kl gf* Yfq =gf\ lg Y Igf+P,N, Cgd\]j* gl‘]j l‘Yf ’/( Y [gfljgdd]\ ^gj]a_f [gjhgjYlagf* Y km[‘ l]je ak \]^af]\ af l‘] >g\]* o‘a[‘ ak j]dYl]\ lg l‘] >alq l‘jgm_‘ klg[c gof]jk‘ah Yf\ ’0( Y ZYfc o‘a[‘ Y[imaj]k km[‘ =gf\ af [gfka\]jYlagf g^ Yf ]pl]fkagf g^ [j]\al eY\] hmjkmYfl lg Y dgYf Y_j]]e]fl ]fl]j]\ aflg af l‘] gj\afYjq [gmjk] g^ Zmkaf]kk* oadd fgl Z] kmZb][l lg Yfq P,N, ^]\]jYd oal‘‘gd\af_ lYp hjgna\]\ l‘Yl l‘] Z]f]^a[aYd gof]j g^ l‘] =gf\ hjgna\]k Y []jla^a[Ylagf [gehd]l]\af [gehdaYf[] oal‘Yhhda[YZd] klYlmlgjqYf\ j]_mdYlgjqj]imaj]e]flk* o‘a[‘j]imaj]e]flk Yj] \ak[mkk]\ Z]dgo mf\]j l‘] ‘]Y\af_ yDf^gjeYlagf M]hgjlaf_ Yf\ =Y[cmh Ral‘‘gd\af_*z gj Yf ]p]ehlagf ak gl‘]joak] ]klYZdak‘]\, ?akhgkalagf g^ l‘] =gf\k, NmZb][l lg l‘] \ak[mkkagfk Z]dgo mf\]j l‘] ‘]Y\af_k yDf^gjeYlagf M]hgjlaf_ Yf\ =Y[cmh Ral‘‘gd\af_z Yf\ yA<O><*z Yfq _Yaf j]Ydar]\ Zq Y Igf+P,N, Cgd\]j mhgf l‘] kYd]* ]p[‘Yf_]* j]\]ehlagf* j]laj]e]fl ’af[dm\af_ hmjkmYfl lg Yf g^^]j Zq l‘] >alq gj Y \]]e]\ j]laj]e]fl \m] lg \]^]YkYf[] g^ 23 l‘] =gf\( gj gl‘]j \akhgkalagf g^ Y =gf\ _]f]jYddq oadd fgl Z] kmZb][l lg P,N, ^]\]jYd af[ge] lYp* mfd]kk ’a( km[‘ _Yaf ak ]^^][lan]dq [gff][l]\ oal‘ l‘] [gf\m[l Zq km[‘ Igf+P,N, Cgd\]j g^ Y ljY\] gj Zmkaf]kk oal‘af l‘] Pfal]\ NlYl]k9 gj ’aa( af l‘] [Yk] g^ Yfq _Yaf j]Ydar]\ Zq Yf af\ana\mYd Igf+P,N, Cgd\]j* km[‘ ‘gd\]j ak hj]k]fl af l‘] Pfal]\ NlYl]k ^gj /61 \Yqk gj egj] af l‘] lYpYZd] q]Yj g^ km[‘ kYd]* ]p[‘Yf_]* j]\]ehlagf* j]laj]e]fl ’af[dm\af_ hmjkmYfl lg Yf g^^]j Zq l‘] >alq( gj gl‘]j \akhgkalagf Yf\ []jlYaf gl‘]j [gf\alagfk Yj] e]l, P,N, A]\]jYd @klYl] OYp, < =gf\ l‘Yl ak ‘]d\ Zq Yf af\ana\mYd o‘g Yl l‘] lae] g^ \]Yl‘ ak fgl Y [alar]f gj j]ka\]fl g^ l‘] Pfal]\ NlYl]k oadd fgl Z] kmZb][l lg P,N, ^]\]jYd ]klYl] lYp Yk Y j]kmdl g^ km[‘ af\ana\mYd{k \]Yl‘* hjgna\]\ l‘Yl* Yl l‘] lae] g^ km[‘ af\ana\mYd{k \]Yl‘* hYqe]flk g^ afl]j]kl oal‘ j]kh][l lg km[‘ =gf\ ogmd\ fgl ‘Yn] Z]]f ]^^][lan]dq [gff][l]\ oal‘ l‘] [gf\m[l Zq km[‘ af\ana\mYd g^ Y ljY\] gj Zmkaf]kk oal‘af l‘] Pfal]\ NlYl]k, Df^gjeYlagf M]hgjlaf_ Yf\ =Y[cmh Ral‘‘gd\af_, NmZb][l lg l‘] \ak[mkkagf Z]dgo mf\]j l‘] ‘]Y\af_ yA<O><*z mf\]j [mjj]fl P,N, Oj]Ykmjq M]_mdYlagfk* hYqe]flk g^ hjaf[ahYd Yf\ afl]j]kl gf Yfq 0.0/ =gf\k lg Y ‘gd\]j l‘Yl ak fgl Y Pfal]\ NlYl]k h]jkgf oadd fgl Z] kmZb][l lg Yfq ZY[cmh oal‘‘gd\af_ lYp j]imaj]e]flk a^ l‘] Z]f]^a[aYd gof]j g^ l‘] =gf\ gj Y ^afYf[aYd afklalmlagf ‘gd\af_ l‘] =gf\ gf Z]‘Yd^ g^ l‘] Z]f]^a[aYd gof]j af l‘] gj\afYjq [gmjk] g^ alk ljY\] gj Zmkaf]kk hjgna\]k Yf YhhjghjaYl] []jla^a[Ylagf lg l‘] hYqgj Yf\ l‘] hYqgj \g]k fgl ‘Yn] Y[lmYd cfgod]\_] l‘Yl l‘] []jla^a[Ylagf ak ^Ydk], D^ Y Z]f]^a[aYd gof]j hjgna\]k l‘] []jla^a[Ylagf* l‘] []jla^a[Ylagf emkl _an] l‘] fYe] Yf\ Y\\j]kk g^ km[‘ gof]j* klYl] l‘Yl km[‘ gof]j ak fgl Y Pfal]\ NlYl]k h]jkgf* gj* af l‘] [Yk] g^ Yf af\ana\mYd* l‘Yl km[‘ gof]j ak f]al‘]j Y [alar]f fgj Y j]ka\]fl g^ l‘] Pfal]\ NlYl]k* Yf\ l‘] gof]j emkl ka_f l‘] []jla^a[Yl] mf\]j h]fYdla]k g^ h]jbmjq, O‘] [mjj]fl ZY[cmh oal‘‘gd\af_ lYp jYl] ak 02$, Foreign Account Tax Compliance Act (“FATCA”)—U.S. Holders and Non-U.S. Holders N][lagfk /25/ l‘jgm_‘ /252 g^ l‘] >g\] aehgk] Y 1.$ oal‘‘gd\af_ lYp gf []jlYaf lqh]k g^ hYqe]flk eY\] lg ^gj]a_f ^afYf[aYd afklalmlagfk* mfd]kk l‘] ^gj]a_f ^afYf[aYd afklalmlagf ]fl]jk aflg Yf Y_j]]e]fl oal‘ l‘] P,N, Oj]Ykmjq lg* Yegf_ gl‘]j l‘af_k* mf\]jlYc] lg a\]fla^q Y[[gmflk ‘]d\ Zq []jlYaf P,N, h]jkgfk gj P,N,+gof]\ ]flala]k* YffmYddq j]hgjl []jlYaf af^gjeYlagf YZgml km[‘ Y[[gmflk* Yf\ oal‘‘gd\ 1.$ gf hYqe]flk lg Y[[gmfl ‘gd\]jko‘gk]Y[lagfkhj]n]fl al^jge[gehdqaf_oal‘l‘]k]Yf\gl‘]jj]hgjlaf_j]imaj]e]flk*gjmfd]kkl‘]^gj]a_f ^afYf[aYd afklalmlagf ak gl‘]joak] ]p]ehl ^jge l‘gk] j]imaj]e]flk, Df Y\\alagf* A<O>< aehgk]k Y 1.$ oal‘‘gd\af_ lYp gf l‘] kYe] lqh]k g^ hYqe]flk lg Y fgf+^afYf[aYd ^gj]a_f ]flalq mfd]kk l‘] ]flalq []jla^a]k l‘Yl al \g]k fgl ‘Yn] Yfq kmZklYflaYd P,N, gof]jk gj l‘] ]flalq ^mjfak‘]k a\]fla^qaf_ af^gjeYlagf j]_Yj\af_ ]Y[‘ kmZklYflaYd P,N, gof]j, Pf\]j [mjj]fl _ma\Yf[]* ^Yadmj] lg [gehdq oal‘ l‘] Y\\alagfYd []jla^a[Ylagf* af^gjeYlagf j]hgjlaf_ Yf\ gl‘]j kh][a^a]\ j]imaj]e]flk aehgk]\ mf\]j A<O>< [gmd\ j]kmdl af l‘] 1.$ oal‘‘gd\af_ lYp Z]af_ aehgk]\ gf hYqe]flk g^ afl]j]kl gf l‘] =gf\k, Df _]f]jYd* oal‘‘gd\af_ mf\]j A<O>< [mjj]fldq Yhhda]k lg hYqe]flk g^ P,N, kgmj[] afl]j]kl ’af[dm\af_ JD?( Yf\* mf\]j [mjj]fl _ma\Yf[]* oadd Yhhdq lg []jlYaf yhYkkl‘jmz hYqe]flk fg ]Yjda]j l‘Yf l‘] \Yl] l‘Yl ak log q]Yjk Y^l]j hmZda[Ylagf g^ ^afYd P,N, Oj]Ykmjq M]_mdYlagfk \]^afaf_ l‘] l]je y^gj]a_f hYkkl‘jm hYqe]flk,z Kjgkh][lan] afn]klgjk k‘gmd\ [gfkmdl l‘]aj gof lYp Y\nakgjk j]_Yj\af_ A<O>< Yf\ alk ]^^][l gf l‘]e, O‘] ^gj]_gaf_ kmeeYjq ak af[dm\]\ ‘]j]af ^gj _]f]jYd af^gjeYlagf gfdq Yf\ \g]k fgl \ak[mkk Ydd Ykh][lk g^ P,N, ^]\]jYd lYpYlagf l‘Yl eYq Z] j]d]nYfl lg Y hYjla[mdYj ‘gd\]j g^ l‘] 0.0/ =gf\k af da_‘l g^ l‘] ‘gd\]j{k hYjla[mdYj [aj[meklYf[]k Yf\ af[ge] lYp kalmYlagf, Kjgkh][lan] afn]klgjk Yj] mj_]\ lg [gfkmdl l‘]aj gof lYp Y\nakgjk Yk lg Yfq lYp [gfk]im]f[]k lg l‘]e ^jge l‘] hmj[‘Yk]* gof]jk‘ah Yf\ \akhgkalagf g^ l‘] =gf\k* af[dm\af_ l‘] Yhhda[Ylagf Yf\ ]^^][l g^ klYl]* dg[Yd* fgf+P,N,* Yf\ gl‘]j lYp dYok, < [ghq g^ l‘] hjghgk]\ ^gje g^ ghafagf g^ =gf\ >gmfk]d ^gj l‘] 0.0/ =gf\k ak YllY[‘]\ ‘]j]lg Yk <hh]f\ap @, Legal Matters Incident to the Issuance of the Bonds >]jlYaf d]_Yd eYll]jk af[a\]fl lg l‘] Yml‘gjarYlagf Yf\ akkmYf[] g^ l‘] 0.0/ =gf\k Yj] kmZb][l lg l‘] Yhhjgnaf_ ghafagf g^ =]kl =]kl % Fja]_]j GGK* Y[laf_ af alk [YhY[alq Yk =gf\ >gmfk]d, >]jlYaf d]_Yd eYll]jk j]dYl]\ lg l‘] 0.0/ =gf\k Yf\ l‘] ?aklja[l oadd Z] hYkk]\ mhgf ^gj l‘] >alq Zq =]kl =]kl % Fja]_]j GGK* Yk 24 ?ak[dgkmj] >gmfk]d lg l‘] >alq, KYqe]fl g^ =gf\ >gmfk]d{k Yf\ ?ak[dgkmj] >gmfk]d{k ^]]k Yf\ ]ph]fk]k ak [gflaf_]fl mhgf l‘] kYd] Yf\ akkmYf[] g^ l‘] 0.0/ =gf\k, O‘] nYjagmk d]_Yd ghafagfk lg Z] \]dan]j]\ [gf[mjj]fldq oal‘ l‘] \]dan]jq g^ l‘] =gf\k oadd Z] imYda^a]\ Yk lg ]f^gj[]YZadalq g^ l‘] nYjagmk d]_Yd afkljme]flk Zq daealYlagfk aehgk]\ Zq ZYfcjmhl[q* j]gj_YfarYlagf* afkgdn]f[q gj gl‘]j kaeadYj dYok Y^^][laf_ l‘] ja_‘lk g^ [j]\algjk _]f]jYddq Yf\ Zq ]imalYZd] j]e]\a]k Yf\ hjg[]]\af_k _]f]jYddq, Financial Interests Df[gff][lagfoal‘akkmYf[]g^l‘]=gf\k*^]]khYqYZd]lg[]jlYafhjg^]kkagfYdk*af[dm\af_l‘]Pf\]jojal]j* =]kl =]kl % Fja]_]j GGK* Yk =gf\ >gmfk]d* =]kl =]kl % Fja]_]j GGK* Yk ?ak[dgkmj] >gmfk]d* Aa]d\eYf* MgdYhh % <kkg[aYl]k* Df[,* Yk Hmfa[ahYd <\nakgj* N[gll <kkg[aYl]k Yk Nh][aYd OYp <\eafakljYlgj* Yf\ P,N, =Yfc IYlagfYd <kkg[aYlagf* Yk Aak[Yd <_]fl* Yj] [gflaf_]fl mhgf l‘] akkmYf[] g^ l‘] =gf\k, No Litigation <l l‘] lae] g^ \]dan]jq g^ Yf\ hYqe]fl ^gj l‘] 0.0/ =gf\k* l‘] >alq oadd []jla^q l‘Yl l‘]j] ak fg Y[lagf* kmal* hjg[]]\af_* afimajq gj afn]kla_Ylagf* Yl dYo gj af ]imalq* Z]^gj] gj Zq Yfq [gmjl* j]_mdYlgjq Y_]f[q* hmZda[ ZgYj\ g^ Zg\q* h]f\af_ oal‘ j]kh][l lg o‘a[‘ l‘] >alq ‘Yk Z]]f k]jn]\ oal‘ hjg[]kk gj ak gl‘]joak] YoYj]* gj* lg l‘] cfgod]\_] g^ l‘] g^^a[]j g^ l‘] >alq ]p][mlaf_ km[‘ []jla^a[Yl]* l‘j]Yl]f]\ Y_Yafkl l‘] >alq Y^^][laf_ l‘] ]pakl]f[] g^ l‘] >alq* l‘] ?aklja[l gj l‘] lald]k g^ alk g^^a[]jk lg l‘]aj j]kh][lan] g^^a[]k gj k]]caf_ lg j]kljYaf gj lg ]fbgaf l‘] kYd] gj \]dan]jq g^ l‘] 0.0/ =gf\k* l‘] Yhhda[Ylagf g^ l‘] hjg[]]\k l‘]j]g^ af Y[[gj\Yf[] oal‘ l‘] Aak[Yd <_]fl <_j]]e]fl* gj l‘] [gdd][lagf gj Yhhda[Ylagf g^ Yfq j]n]fm]k hjgna\]\ ^gj l‘] hYqe]fl g^ l‘] 0.0/ =gf\k* gj af YfqoYq[gfl]klaf_gjY^^][laf_l‘] nYda\alqgj ]f^gj[]YZadalqg^l‘]0.0/ =gf\k* l‘] Aak[Yd <_]fl <_j]]e]fl* Yfq Y[lagf g^ l‘] >alq [gfl]ehdYl]\ Zq Yfq g^ l‘] kYa\ \g[me]flk* gj l‘] [gdd][lagf gj Yhhda[Ylagf g^ Yfq j]n]fm]k hjgna\]\^gjl‘]hYqe]fl g^l‘]0.0/=gf\k*gjafYfqoYq[gfl]klaf_l‘][gehd]l]f]kkgjY[[mjY[qg^ l‘akJ^^a[aYd NlYl]e]fl gj Yfq Ye]f\e]fl gj kmhhd]e]fl ‘]j]lg* gj [gfl]klaf_ l‘] hgo]jk g^ l‘] >alq gj alk Yml‘gjalq oal‘ j]kh][l lg l‘] 0.0/ =gf\k gj Yfq Y[lagf g^ l‘] >alq [gfl]ehdYl]\ Zq Yfq g^ kYa\ \g[me]flk* fgj* lg l‘] cfgod]\_] g^ l‘] g^^a[]j g^ l‘] >alq ]p][mlaf_ km[‘ []jla^a[Yl]* ak l‘]j] Yfq ZYkak l‘]j]^gj], Ratings Df [gff][lagf oal‘ l‘] akkmYf[] Yf\ \]dan]jqg^ l‘] 0.0/ =gf\k* N%K BdgZYd MYlaf_k ’yN%Kz( ak ]ph][l]\ lg Ykka_f alk emfa[ahYd Zgf\ jYlaf_ g^ y<<z lg l‘] Dfkmj]\ =gf\k ZYk]\ mhgf l‘] akkmYf[] g^ l‘] DfkmjYf[] Kgda[q Zq l‘] Dfkmj]j, N%K ‘Yk Ykka_f]\ Yf mf\]jdqaf_ jYlaf_ g^ y<z ’klYZd] gmldggc( lg l‘] 0.0/ =gf\k, B]f]jYddq* Y jYlaf_ Y_]f[q ZYk]k alk jYlaf_ gf l‘] af^gjeYlagf Yf\ eYl]jaYdk ^mjfak‘]\ lg al Yf\ gf afn]kla_Ylagfk* klm\a]k Yf\ Ykkmehlagfk g^ alk gof, O‘]j] ak fg YkkmjYf[] l‘Yl l‘ak jYlaf_ oadd [gflafm] ^gj Yfq _an]f h]jag\ g^ lae] gj l‘Yl l‘ak jYlaf_ oadd fgl Z] j]nak]\ \gofoYj\ gj oal‘\jYof ]flaj]dq Zq N%K* a^ af l‘] bm\_e]fl g^ km[‘ jYlaf_ Y_]f[q* [aj[meklYf[]k kg oYjjYfl, <fq km[‘ \gofoYj\ j]nakagf gj oal‘\jYoYd g^ Yfq jYlaf_ gZlYaf]\ eYq ‘Yn] Yf Y\n]jk] ]^^][l gf l‘] eYjc]l hja[] g^ l‘] 0.0/ =gf\k, O‘] ?aklja[l Yf\ l‘] Pf\]jojal]j ‘Yn] mf\]jlYc]f fg j]khgfkaZadalq ]al‘]j lg Zjaf_ lg l‘] Yll]flagf g^ l‘] gof]jk g^ l‘] 0.0/ =gf\k Yfq hjghgk]\ [‘Yf_] af gj oal‘\jYoYd g^ Y jYlaf_ gj lg ghhgk] Yfq km[‘ hjghgk]\ j]nakagf gj oal‘\jYoYd* ‘go]n]j, <fq km[‘ \gofoYj\ [‘Yf_] af gj oal‘\jYoYd g^ Y jYlaf_ ea_‘l ‘Yn] Yf Y\n]jk] ]^^][l gf l‘] eYjc]l hja[] gj eYjc]lYZadalq g^ l‘] N]ja]k 0.0/ =gf\k, Verification O‘] Q]ja^a[Ylagf <_]fl oadd n]ja^q ^jge l‘] af^gjeYlagf hjgna\]\ lg l‘]e l‘] eYl‘]eYla[Yd Y[[mjY[q Yk g^ l‘] \Yl] g^ l‘] \]dan]jqg^ l‘] 0.0/ =gf\k g^ l‘] [gehmlYlagfk [gflYaf]\afl‘] hjgna\]\ k[‘]\md]klg \]l]jeaf] l‘Yl l‘] Yfla[ahYl]\ j][]ahlk ^jge l‘] k][mjala]k Yf\ [Yk‘ \]hgkalk dakl]\ af l‘] Pf\]jojal]j{k k[‘]\md]k* lg Z] ‘]d\ af ]k[jgo* oadd Z] km^^a[a]fl lg hYq* o‘]f \m]* l‘] hjaf[ahYd* afl]j]kl Yf\ [Ydd hj]eame hYqe]fl j]imaj]e]flk g^ l‘] Kjagj =gf\k, O‘] Q]ja^a[Ylagf <_]fl oadd ]phj]kk fg ghafagf gf l‘] Ykkmehlagfk hjgna\]\ lg al* fgj Yk lg l‘] ]p]ehlagf ^jge lYpYlagf g^ l‘] afl]j]kl gf l‘] 0.0/ =gf\k, Miscellaneous The quotations from, and summaries and explanations of the Fiscal Agent Agreement and other statutes and documents contained herein do not purport to be complete, and reference is made to such documents, the Fiscal Agent Agreement, and statutes for full and complete statements of their provisions. This Official Statement is submitted only in connection with the sale of the 2021 Bonds by the City. All estimates, assumptions, statistical information and other statements contained herein, while taken from sources considered reliable, are not guaranteed by the District or the City. The information contained herein should not be considered as representing all conditions affecting the City, the District or the 2021 Bonds. This Official Statement does not constitute a contract with the purchasers of the 2021 Bonds. Any statements made in this Official Statement involving matters of opinion or of estimates, whether or not so expressly stated, are set forth as such and not as representations of fact, and no representation is made that any of the estimates will be realized. The execution and delivery of this Official Statement has been duly authorized by the City. CITY OF ENCINITAS, for and on behalf of CITY OF ENCINITAS COMMUNITY FACILITIES DISTRICT NO. 1 (ENCINITAS RANCH PUBLIC IMPROVEMENTS) B. . City Manager 47 VOCDN K<B@ DIO@IODJI<GGT G@AO =G<IFW <+/ < APPENDIX A RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX AMENDED AND RESTATED RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR CITY OF ENCINITAS COMMUNITY FACILITIES DISTRICT NO. 1 (ENCINITAS RANCH PUBLIC IMPROVEMENTS) < kh][aYd lYp k‘Ydd Z] d]na]\ gf Yf\ [gdd][l]\ af l‘] >alq g^ @f[afalYk >geemfalq AY[adala]k ?aklja[l Ig, / ’@f[afalYk MYf[‘ KmZda[ Dehjgn]e]flk( ’y>A? Ig, /z( ]Y[‘ Aak[Yd T]Yj* af Yf Yegmfl \]l]jeaf]\ l‘jgm_‘ l‘] Yhhda[Ylagf g^ l‘] jYl] Yf\ e]l‘g\ g^ Yhhgjlagfe]fl \]k[jaZ]\ Z]dgo, <dd g^ l‘] hjgh]jlq af >A? Ig, /* mfd]kk ]p]ehl]\ Zq dYo gj Zq l‘] hjgnakagfk ‘]j]g^* k‘Ydd Z] lYp]\ ^gj l‘] hmjhgk]k* lg l‘] ]pl]fl Yf\ af l‘] eYff]j ‘]j]af hjgna\]\, A. DEFINITIONS O‘] l]jek ‘]j]afY^l]j k]l ^gjl‘ ‘Yn] l‘] ^gddgoaf_ e]Yfaf_k8 yAccessory Residential Unitz e]Yfk Y j]ka\]flaYd \o]ddaf_ mfal ^gj o‘a[‘ Y Zmad\af_ h]jeal oYk akkm]\ Yk g^ HYj[‘ / g^ l‘] hjagj Aak[Yd T]Yj ^gj hmjhgk]k g^ [gfkljm[laf_ Yf YllY[‘]\ gj \]lY[‘]\ k][gf\Yjq j]ka\]flaYd \o]ddaf_ mfal gf Y kaf_d] ^Yeadq dgl hmjkmYfl lg 1.,26,.2.R g^ l‘] >alq g^ @f[afalYk Hmfa[ahYd >g\]* Qgdme] DD ’GYf\ Pk](* Oald] 1. ’Ugfaf_(, yAcre or Acreagez e]Yfk l‘] dYf\ Yj]Y g^ Yf <kk]kkgj{k KYj[]d Yk k‘gof gf Yf <kk]kkgj{k KYj[]d HYh* gj a^ l‘] dYf\ Yj]Y ak fgl k‘gof gf Yf <kk]kkgj{k KYj[]d HYh* l‘] dYf\ Yj]Y k‘gof gf l‘] Yhhda[YZd] ^afYd eYh* hYj[]d eYh* [gf\geafame hdYf* gj gl‘]j j][gj\]\ hYj[]d eYh, yActz e]Yfk l‘] H]ddg+Mggk >geemfalqAY[adala]k <[l g^ /760* Yk Ye]f\]\* Z]af_>‘Yhl]j 0,3* ?anakagf 0 g^ Oald] 3 g^ l‘] Bgn]jfe]fl >g\] g^ l‘] NlYl] g^ >Yda^gjfaY, yAdministrative Expensesz e]Yfk l‘] ^gddgoaf_ Y[lmYd gj j]YkgfYZdq ]klaeYl]\ [gklk \aj][ldq j]dYl]\ lg l‘] Y\eafakljYlagf g^ >A? Ig, /8 l‘] [gklk g^ [gehmlaf_ l‘] Nh][aYd OYp]k Yf\ hj]hYjaf_ l‘] YffmYd Nh][aYd OYp [gdd][lagf k[‘]\md]k9 l‘] [gklk g^ [gdd][laf_ l‘] Nh][aYd OYp]k9 l‘] [gklk g^ j]eallaf_ l‘] Nh][aYd OYp]k lg l‘] Aak[Yd <_]fl9 l‘] [gklk g^ l‘] Aak[Yd <_]fl ’af[dm\af_ alk d]_Yd [gmfk]d( af l‘] \ak[‘Yj_] g^ l‘] \mla]k j]imaj]\ g^ al mf\]j l‘] Aak[Yd <_]fl <_j]]e]fl9 l‘] [gklk g^ l‘] >alq gj alk \]ka_f]] g^ [gehdqaf_ oal‘ \ak[dgkmj] j]imaj]e]flk g^ Yhhda[YZd] ^]\]jYd Yf\ klYl] k][mjala]k dYok Yf\ g^ l‘] <[l* af[dm\af_ hmZda[ afimaja]k j]_Yj\af_ l‘] Nh][aYd OYp]k9 l‘] [gklk g^ l‘] >alq gj alk \]ka_f]] j]dYl]\ lg Yfq Yhh]Yd gj d]_Yd Y[lagf j]dYl]\ lg l‘] Nh][aYd OYp]k9 [gklk Ykkg[aYl]\ oal‘ l‘] j]d]Yk] g^ ^mf\k ^jge Yf ]k[jgo Y[[gmfl9 Yf\ Yf Yddg[YZd] k‘Yj] g^ l‘] kYdYja]k g^ l‘] >alq klY^^ Yf\ >alq gn]j‘]Y\ \aj][ldq j]dYl]\ lg l‘] ^gj]_gaf_, <\eafakljYlan] @ph]fk]k k‘Ydd Ydkg af[dm\] Yegmflk Y\nYf[]\ Zq l‘] >alq ^gj Yfq gl‘]j Y\eafakljYlan] hmjhgk]k g^ l‘] >A? Ig, /* af[dm\af_ l‘] [gklk j]dYl]\ lg l‘] hj]hYqe]fl g^ Nh][aYd OYp]k* j][gj\af_k j]dYl]\ lg km[‘ hj]hYqe]fl Yf\ kYlak^Y[lagf g^ Nh][aYd OYp]k* Yf\ l‘] [gklk g^ hmjkmaf_ ^gj][dgkmj] af j]kh][l g^ \]dafim]fl Nh][aYd OYp]k, yAffordable Housing Propertyz e]Yfk Yfq <kk]kkgj{k KYj[]d ’]p[dm\af_ <[[]kkgjq M]ka\]flaYd Pfalk Yf\ kmZb][l lg l‘] daealYlagfk af N][lagf @ Z]dgo( ^gj o‘a[‘ Y Zmad\af_ h]jeal oYk akkm]\ Yk g^ HYj[‘ / g^ l‘] hjagj ^ak[Yd q]Yj ^gj Zmad\af_ Y j]ka\]flaYd \o]ddaf_ mfal’k( l‘Yl ak kmZb][l lg \]]\ j]klja[lagfk* j]kYd] j]klja[lagfk Yf\-gj j]_mdYlgjq Y_j]]e]flk j][gj\]\ af ^Yngj g^ l‘] >alq hjgna\af_ ^gj Y^^gj\YZd] ‘gmkaf_ [gfkakl]fl oal‘ ’a( l‘] <^^gj\YZd] Cgmkaf_ >gehdaYf[] KdYf <_j]]e]fl ’@f[afalYk MYf[‘( Z]lo]]f l‘] >alq Yf\ l‘] >YjdlYk >gehYfq Yf\ ’aa( Yfq \]lYad]\* hjgb][l+kh][a^a[ Y_j]]e]flk ^gj l‘] kmZb][l Y^^gj\YZd] ‘gmkaf_ hjgb][lk, yAgricultural Propertyz e]Yfk Y lglYd g^ /1. Y[j]k* [gehjak]\ g^ hgjlagfk g^ <kk]kkgj{k KYj[]dk 032+ 0..+12* 033+.//+.5* 035+./.+12* 035+./.+14* 035+./.+15* 035+.0.+.0* 035+.1.+06* 035 .2.+01* Yf\ 035+.2.+ <+0 02* Yk af\a[Yl]\ af l‘] lYZd] Z]dgo, O‘] j]eYafaf_ <[j]Y_] g^ km[‘ <kk]kkgj{k KYj[]dk k‘Ydd Z] [dYkka^a]\ Yk Pf\]n]dgh]\ Kjgh]jlq, D^ l‘]k] <kk]kkgj{k KYj[]dk []Yk] lg ]pakl gj a^ Y [‘Yf_] af dYf\ mk] g[[mjk* l‘]f l‘] dYf\gof]j o‘a[‘ ak Y hYjlq lg l‘Yl []jlYaf ?]n]dghe]fl <_j]]e]fl \Yl]\ Yk g^ N]hl]eZ]j 06* /772* Yf\ j][gj\]\ af l‘] J^^a[aYd M][gj\k g^ l‘] >gmflq g^ NYf ?a]_g Yk ?g[me]fl Ig, /772+.5/1445* gj alk km[[]kkgj af afl]j]kl l‘]j]mf\]j* k‘Ydd hjgna\] lgl‘] >alq Ydakl g^ <kk]kkgj{kKYj[]dk l‘]f af Y_ja[mdlmjYdmk] Yf\ l‘] >alq HYfY_]j k‘Ydd \]ka_fYl] mh lg /1. Y[j]k g^ <_ja[mdlmjYd Kjgh]jlq ^jge l‘] <kk]kkgj{k KYj[]dk gf km[‘ dakl, D^ l‘] lglYd <[j]Y_] g^ l‘] <kk]kkgj{k KYj[]d’k( \]ka_fYl]\ Yk <_ja[mdlmjYd Kjgh]jlq ]p[]]\k /1. Y[j]k* l‘]f l‘] >alq HYfY_]j k‘Ydd a\]fla^q l‘] hgjlagf g^ ]Y[‘ <kk]kkgj{k KYj[]d l‘Yl ak <_ja[mdlmjYd KYj[]d, Pf\]j fg [aj[meklYf[]k oadd egj] l‘Yf /1. Y[j]k Z] [dYkka^a]\ Yk <_ja[mdlmjYd Kjgh]jlq, D^ l‘] >alq HYfY_]j ‘Yk fgl Z]]f hjgna\]\ oal‘ l‘] mh\Yl]\ dakl g^ <kk]kkgj{k KYj[]dk af Y_ja[mdlmjYd mk] Zq Emdq / g^ ]Y[‘ Aak[Yd T]Yj l‘]f l‘] >alq k‘Ydd Yk[]jlYaf o‘a[‘ <kk]kkgj{k KYj[]dk Yj] [mjj]fldq af Y_ja[mdlmjYd mk] Yf\ l‘] >alq HYfY_]j k‘Ydd eYc] l‘] \]ka_fYlagf Yk \]k[jaZ]\ YZgn], Assessor’s Parcel Acres of Agricultural Property 032+0..+12 4,4. 033+.//+.5 1,4. 035+./.+12 00,2. 035+./.+14 1,0. 035+./.+15 /6,3. 035+.0.+.0 10,2. 035+.1.+06 13,6. 035+.2.+01 1,7. 035+.2.+02 1,4. OglYd /1.,.. yApartment Propertyz e]Yfk Ydd <kk]kkgj{k KYj[]dk g^ M]ka\]flaYd Kjgh]jlq ^gj o‘a[‘ Y Zmad\af_ h]jeal ‘Yk Z]]f akkm]\ ^gj Zmad\af_ Y kljm[lmj] [gehjak]\ g^ YllY[‘]\ j]ka\]flaYd mfalk* Ydd g^ o‘a[‘ Yj] eY\] YnYadYZd] ^gj j]flYd* Zml fgl hmj[‘Yk]* Zq l‘] _]f]jYd hmZda[* ]p[dmkan] g^ >gf_j]_Yl] >Yj] Kjgh]jlq, yAssessor’sParcelze]YfkYdgl gjhYj[]dk‘gofafYf<kk]kkgj{kKYj[]d HYhoal‘YfYkka_f]\<kk]kkgj{k KYj[]d fmeZ]j, yAssessor’s Parcel Mapz e]Yfk Yf g^^a[aYd eYh g^ l‘] >gmflq <kk]kkgj g^ l‘] >gmflq g^ NYf ?a]_g \]ka_fYlaf_ hYj[]dk Zq <kk]kkgj{k KYj[]d fmeZ]j, yAssigned Special Taxz e]Yfk l‘] Nh][aYd OYp ^gj ]Y[‘ GYf\ Pk] >dYkk* Yk \]l]jeaf]\ Zq j]^]j]f[] lg OYZd] / g^ N][lagf > Z]dgo, yBackup Special Taxz e]Yfk l‘] Nh][aYd OYp Yhhda[YZd] lg ]Y[‘ <kk]kkgj{k KYj[]d g^ ?]n]dgh]\ Kjgh]jlq Yk \]l]jeaf]\ af Y[[gj\Yf[] oal‘ N][lagf > Z]dgo, yBondsz e]Yfk Yfq Zgf\k gj gl‘]j \]Zl ’Yk \]^af]\ af N][lagf 311/5’\( g^ l‘] <[l(* o‘]l‘]j af gf] gj egj] k]ja]k* akkm]\ Zq l‘] >alq ^gj >A? Ig, / mf\]j l‘] <[l, yBuilding Square Footagez e]Yfk* ^gj Yfq <kk]kkgj{k KYj[]d g^ M]ka\]flaYd Kjgh]jlq* l‘] kimYj] ^gglY_] g^ danaf_ Yj]Y dakl]\ gf l‘] Zmad\af_ h]jeal’k( akkm]\ ^gj km[‘ <kk]kkgj{k KYj[]d* ]p[dmkan] g^ _YjY_]k gj gl‘]j kljm[lmj]k o‘a[‘ Yj] fgl mk]\ Yk danaf_ khY[]k, yCityz e]Yfk l‘] >alq g^ @f[afalYk, yCity Managerz e]Yfk l‘] >alq HYfY_]j g^ l‘] >alq gj ‘ak-‘]j \]ka_f]], <+1 yCommercial Propertyz e]Yfk Ydd <kk]kkgj{k KYj[]dk g^ Igf+M]ka\]flaYd Kjgh]jlq gl‘]j l‘Yf Cgl]d Kjgh]jlq, yCongregate Care Propertyz e]Yfk Ydd <kk]kkgj{k KYj[]dk g^ M]ka\]flaYd Kjgh]jlq* ^gj o‘a[‘ Y Zmad\af_ h]jeal ‘Yk Z]]f akkm]\ ^gj Zmad\af_ Y kljm[lmj] [gehjak]\ g^ YllY[‘]\ j]ka\]flaYd mfalk \]ka_f]\ ^gj ]d\]jdq danaf_* Yf\ l‘Yl eYq af[dm\] ^mf[lagfYddq j]dYl]\ Yf\ [gfla_mgmk \afaf_ ^Y[adala]k* e]\a[Yd ^Y[adala]k* Yf\ j][j]YlagfYd ^Y[adala]k, yCouncilz e]Yfk l‘] >alq >gmf[ad g^ l‘] >alq g^ @f[afalYk* Y[laf_ Yk l‘] d]_akdYlan] Zg\q g^ >A? Ig, /, yCountyz e]Yfk l‘] >gmflq g^ NYf ?a]_g, yDeveloped Propertyz e]Yfk* ^gj Yfq Aak[Yd T]Yj* Ydd <kk]kkgj{k KYj[]dk g^ OYpYZd] Kjgh]jlq* ]p[dmkan] g^ <_ja[mdlmjYd Kjgh]jlq Yf\ OYpYZd] Kjgh]jlq Jof]j <kkg[aYlagf Kjgh]jlq* ^gj o‘a[‘ Y Zmad\af_ h]jeal oYk akkm]\ Yk g^ HYj[‘ / g^ l‘] hjagj Aak[Yd T]Yj* hdmk Ydd <kk]kkgj{k KYj[]dk g^ M]_agfYd >gee]j[aYd >]fl]j Kjgh]jlq ’o‘]l‘]j gj fgl Zmad\af_ h]jealk ‘Yn] Z]]f akkm]\ ^gj km[‘ <kk]kkgj{k KYj[]dk(, yExpected Special Taxz e]Yfk l‘] Nh][aYd OYp l‘Yl ak gfdq Yhhda[YZd] lg <kk]kkgj{k KYj[]dk [gflYafaf_ Zgl‘ <hYjle]fl Kjgh]jlq Yf\ >gee]j[aYd Kjgh]jlq Yf\ l‘Yl ak [Yd[mdYl]\ hmjkmYfl lg N][lagf >,\, yFiscal Agentz e]Yfk l‘] ]flalq Y[laf_ Yk Aak[Yd <_]fl mf\]j l‘] Aak[Yd <_]fl <_j]]e]fl, yFiscal Agent Agreementz e]Yfk l‘] Y_j]]e]fl Zq l‘] fYe] Z]lo]]f l‘] >alq Yf\ l‘] Aak[Yd <_]fl hmjkmYfl lg o‘a[‘ l‘] =gf\k Yj] akkm]\* af[dm\af_ Yfq Ye]f\e]fl l‘]j]g^ gj kmhhd]e]fl l‘]j]lg, yFiscal Yearz e]Yfk l‘] h]jag\ klYjlaf_ Emdq / Yf\ ]f\af_ gf l‘] ^gddgoaf_ Emf] 1., yGross Floor Areaz e]Yfk l‘] [gn]j]\ Yf\ ]f[dgk]\ khY[] \]l]jeaf]\ lg Z] oal‘ l‘] h]jae]l]j g^ fgf+ j]ka\]flaYd kljm[lmj]* fgl af[dm\af_ Yfq klgjY_] Yj]Yk af[a\]flYd lg l‘] hjaf[ahYd mk] g^ l‘] \]n]dghe]fl* _YjY_]* hYjcaf_ kljm[lmj]* mf]f[dgk]\ oYdcoYq* gj mladalq gj \akhgkYd Yj]Y, O‘] Yegmfl g^ [‘Yj_]YZd] [gn]j]\ Yf\ ]f[dgk]\ khY[] oal‘af l‘] h]jae]l]j g^ Y [gee]j[aYd gj af\mkljaYd kljm[lmj] k‘Ydd Z] ZYk]\ gf l‘] Zmad\af_ h]jeal akkm]\ ^gj l‘] kljm[lmj], yHotel Propertyz e]Yfk Ydd <kk]kkgj{k KYj[]dk g^ Igf+M]ka\]flaYd Kjgh]jlq ^gj o‘a[‘ Y Zmad\af_ h]jeal oYk akkm]\ ^gj Zmad\af_ kljm[lmj] l‘Yl [gfklalml]k Y hdY[] g^ dg\_af_ hjgna\af_ kd]]haf_ Y[[geeg\Ylagfk Yf\ j]dYl]\ ^Y[adala]k ^gj ljYn]d]jk, <fqYf[addYjqmk]kgfl‘]kYe] <kk]kkgj{k KYj[]d* km[‘ Yk j]lYad* k‘Ydd Z] [gfka\]j]\ Cgl]d Kjgh]jlq, yInflation Indexz e]Yfk l‘] YffmYd h]j[]flY_] [‘Yf_] af l‘] @f_af]]jaf_ I]ok+M][gj\ =mad\af_ >gkl Df\]p ^gj l‘] >alq g^ Ggk <f_]d]k* e]Ykmj]\ Yk g^ l‘] [Yd]f\Yj q]Yj ]f\af_ af l‘] hj]nagmk Aak[Yd T]Yj, Df l‘] ]n]fl l‘ak af\]p []Yk]k lg Z] hmZdak‘]\* l‘] Df^dYlagf Df\]p k‘Ydd Z] Yfgl‘]j af\]p Yk \]l]jeaf]\ Zq l‘] >alq HYfY_]j l‘Yl ak j]YkgfYZdq [gehYjYZd] lg l‘] @f_af]]jaf_ I]ok+M][gj\ =mad\af_ >gkl Df\]p ^gj l‘] >alq g^ Ggk <f_]d]k, yInitial Assigned Special Taxz e]Yfk l‘] <kka_f]\ Nh][aYd OYp ^gj Yf <kk]kkgj{k KYj[]d ^gj l‘] Aajkl T]Yj ^gddgoaf_ alk \]ka_fYlagf Yk ?]n]dgh]\ Kjgh]jlq, yLand Use Classz e]Yfk Yfq g^ l‘] [dYkk]k dakl]\ af OYZd] / Z]dgo, yMaximum Special Taxz e]Yfk l‘] eYpaeme Nh][aYd OYp* \]l]jeaf]\ af Y[[gj\Yf[] oal‘ N][lagf >* l‘Yl [Yf Z] d]na]\ Zq >A? Ig, / af Yfq Aak[Yd T]Yj ^gj Pf\]n]dgh]\ Kjgh]jlq* ]Y[‘ GYf\ Pk] >dYkk g^ ?]n]dgh]\ Kjgh]jlq <_ja[mdlmjYd Kjgh]jlq* Yf\ OYpYZd] Kjgh]jlq Jof]j <kkg[aYlagf Kjgh]jlq* Yk Yhhda[YZd], <+2 yNon-Residential Propertyz e]Yfk Ydd <kk]kkgj{k KYj[]dk g^ ?]n]dgh]\ Kjgh]jlq ^gj o‘a[‘ l‘] Zmad\af_ h]jeal oYk akkm]\ ^gj hmjhgk]k g^ [gfkljm[laf_ Y fgf+j]ka\]flaYd kljm[lmj]’k(* af[dm\af_ >gee]j[aYd Kjgh]jlq Yf\ Cgl]d Kjgh]jlq* ]p[dmkan] g^ M]_agfYd >gee]j[aYd >]fl]j Kjgh]jlq, yOpen Space Propertyz e]Yfk* ^gj Yfq Aak[Yd T]Yj* Yfq <kk]kkgj{k KYj[]d* gj hgjlagf g^ Yf <kk]kkgj{k KYj[]d* \]ka_fYl]\ Yk gh]f khY[] gf l‘] [mjj]fl <kk]kkgj{k KYj[]d HYh, yProperty Owner Association Propertyz e]Yfk* ^gj Yfq Aak[Yd T]Yj* Ydd <kk]kkgj{k KYj[]dk oal‘af l‘] Zgmf\Yja]k g^ >A? Ig, / gof]\ Zq Y hjgh]jlq gof]j Ykkg[aYlagf Yk g^ HYj[‘ / g^ l‘] hjagj Aak[Yd T]Yj, yPublic Propertyz e]Yfk Yfq hjgh]jlq oal‘af l‘] Zgmf\Yja]k g^ >A? IJ, / l‘Yl ak gof]\ Zq gj ajj]ng[YZdq g^^]j]\ ^gj \]\a[Ylagf lg l‘] ^]\]jYd _gn]jfe]fl* NlYl] g^ >Yda^gjfaY gj gl‘]j _gn]jfe]fl Y_]f[q* gj l‘Yl ak \]ka_fYl]\ Yk Jh]f NhY[] Kjgh]jlq, yRegional Commercial Center Propertyz e]Yfk Ydd <kk]kkgj{k KYj[]dk dg[Yl]\ oal‘af dglk 0 Yf\ 1* 3 l‘jgm_‘ /1* Yf\ /3 l‘jgm_‘ 16 g^ >alq g^ @f[afalYk HYh Ig, /111 ’<e]f\]\ HYh g^ >alq g^ @f[afalYk HYh, Ig, /1036* >alq g^ @f[afalYk OjY[l IJ, 72+.44* Pfalk D* DD* Yf\ DDD(, yResidential Propertyz e]Yfk Ydd <kk]kkgj{k KYj[]dk g^ ?]n]dgh]\ Kjgh]jlq ^gj o‘a[‘ l‘] Zmad\af_ h]jeal oYk akkm]\ ^gj hmjhgk]k g^ [gfkljm[laf_ Y j]ka\]flaYd \o]ddaf_ mfal’k(* af[dm\af_ <hYjle]fl Kjgh]jlq* >gf_j]_Yl] >Yj] Kjgh]jlq* Naf_d] AYeadq <llY[‘]\ Kjgh]jlq* Yf\ Naf_d] AYeadq ?]lY[‘]\ Kjgh]jlq, ySingle Family Attached Propertyz e]Yfk Ydd <kk]kkgj{k KYj[]dk g^ M]ka\]flaYd Kjgh]jlq* gl‘]j l‘Yf <hYjle]fl Kjgh]jlq* >gf_j]_Yl] >Yj] Kjgh]jlq* <[[]kkgjq M]ka\]flaYd Pfalk* Yf\ Naf_d] AYeadq ?]lY[‘]\ Kjgh]jlq ^gj o‘a[‘ Y Zmad\af_ h]jeal ‘Yk Z]]f akkm]\ ^gj hmjhgk]k g^ [gfkljm[laf_ Y j]ka\]flaYd kljm[lmj] eY\] mh g^ log gj egj] mfalk l‘Yl k‘Yj] [geegf oYddk, ySingle Family Detached Propertyz e]Yfk Ydd <kk]kkgj{k KYj[]dk g^ M]ka\]flaYd Kjgh]jlq ^gj o‘a[‘ Y Zmad\af_ h]jeal’k( ‘Yk Z]]f akkm]\ ^gj hmjhgk]k g^ [gfkljm[laf_ ’a( Y \]lY[‘]\ j]ka\]flaYd \o]ddaf_ mfal gj ’aa( Y hjaeYjq kaf_d] ^Yeadq \o]ddaf_ mflad hdmk Yf YllY[‘]\ gj \]lY[‘]\ <[[]kkgjq M]ka\]flaYd Pfal, O‘] kimYj] ^gglY_] g^ l‘] <[[]kkgjq M]ka\]flaYd Pfal k‘Ydd Z] Y\\]\ lg l‘] kimYj] ^gglY_] g^ l‘] hjaeYjq \o]ddaf_ mfal, ySpecial Taxz e]Yfk l‘] kh][aYd lYp lg Z] d]na]\ af ]Y[‘ Aak[Yd T]Yj gf ]Y[‘ <kk]kkgj{k KYj[]d g^ ?]n]dgh]\ Kjgh]jlq* <_ja[mdlmjYd Kjgh]jlq* Pf\]n]dgh]\ Kjgh]jlq* Yf\ OYpYZd] Kjgh]jlq Jof]j <kkg[aYlagf Kjgh]jlq lg ^mf\ l‘] Nh][aYd OYp M]imaj]e]fl, ySpecial Tax Requirementz e]Yfk l‘] Yegmfl j]imaj]\ af Yfq Aak[Yd T]Yj ^gj >A? IJ, / lg8 ’/( hYq \]Zl k]jna[] gf Ydd gmlklYf\af_ =gf\k g^ >A? Ig, /* gj gl‘]j h]jag\a[ [gklk gf l‘] =gf\k* ’0( hYq l‘] <\eafakljYlan] @ph]fk]k* ’1( Y[[memdYl] ^mf\k lg hYq \aj][ldq ^gj Yml‘gjar]\ ^Y[adala]k lg l‘] ]pl]fl l‘Yl \gaf_ kg \g]k fgl [Ymk] l‘] Nh][aYd OYp lg Z] d]na]\ gf Yfq<kk]kkgj{k KYj[]d g^ Pf\]n]dgh]\ Kjgh]jlqlg af[j]Yk] Zq egj] l‘Yf #/.. h]j Y[j] gn]j l‘] Nh][aYd OYp l‘Yl ogmd\ ‘Yn] Z]]f d]na]\ a^ fg ^mf\k o]j] Y[[memdYl]\ lg hYq \aj][ldq ^gj Yml‘gjar]\ ^Y[adala]k* ’2( hYq [gklk Ykkg[aYl]\ oal‘ l‘] j]d]Yk] g^ ^mf\k ^jge Yf ]k[jgo Y[[gmfl a^ Yfq* ’3( hYq Yfq Yegmflk j]imaj]\ lg ]klYZdak‘ gj j]hd]fak‘ Yfq j]k]jn] ^mf\k ^gj Yfq gmlklYf\af_ Zgf\k ^gj >A? Ig, /* ’4( hYq Yfq Yegmflk \]l]jeaf]\ Zq l‘] >alq HYfY_]j f][]kkYjq lg eYc] j]ZYl] hYqe]flk lg l‘] ^]\]jYd _gn]jfe]fl* ’5( hYq ^gj Yfla[ahYl]\ \]dafim]fl kh][aYd lYp]k ’km[‘ \]dafim]fl kh][aYd lYp]k k‘Ydd Z] ]klaeYl]\ ZYk]\ gf l‘] \]dafim]f[q jYl] af l‘] >A? ^gj l‘] hj]nagmk Aak[Yd T]Yj(* Yf\ ’6( hYq ^gj Y d]ll]j g^ [j]\al* Zgf\ afkmjYf[] gj Yfq gl‘]j lqh] g^ [j]\al ]f‘Yf[]e]fl ^gj l‘] =gf\k, yTaxable Propertyz e]Yfk Ydd g^ l‘] <kk]kkgj{k KYj[]dk oal‘af l‘] Zgmf\Yja]k g^ >A? Ig, / o‘a[‘ Yj] fgl ]p]ehl ^jge l‘] Nh][aYd OYp hmjkmYfl lg dYo gj N][lagf @ Z]dgo, yTaxable Property Owner Association Propertyz e]Yfk Ydd <kk]kkgj{k KYj[]dk g^ Kjgh]jlq Jof]j <kkg[aYlagf Kjgh]jlq o‘a[‘ ‘Yk fgl Z]]f ]p]ehl]\ hmjkmYfl lg N][lagf @, <+3 yUndeveloped Propertyz e]Yfk* ^gj Yfq Aak[Yd T]Yj* Ydd <kk]kkgj{k KYj[]dk g^ OYpYZd] Kjgh]jlq fgl [dYkka^a]\ Yk ?]n]dgh]\ Kjgh]jlq* <_ja[mdlmjYd Kjgh]jlq gj OYpYZd] Kjgh]jlq Jof]j <kkg[aYlagf Kjgh]jlq Yk g^ HYj[‘ / g^ l‘] hjagj Aak[Yd T]Yj, B. ASSIGNMENT TO LAND USE CATEGORIES Agj ]Y[‘ Aak[Yd T]Yj* Ydd OYpYZd] Kjgh]jlq oal‘af >A? Ig, / k‘Ydd Z] [dYkka^a]\ Yk ?]n]dgh]\ Kjgh]jlq* <_ja[mdlmjYd Kjgh]jlq* Pf\]n]dgh]\ Kjgh]jlq* gj OYpYZd] Kjgh]jlq Jof]j <kkg[aYlagf Kjgh]jlq* Yf\ k‘Ydd Z] kmZb][l lg l‘] Nh][aYd OYp af Y[[gj\Yf[] oal‘ l‘] jYl] Yf\ e]l‘g\ g^ Yhhgafle]fl \]l]jeaf]\ hmjkmYfl lg N][lagfk > Yf\ ? Z]dgo, Agj hmjhgk]kg^\]l]jeafaf_l‘]Yhhda[YZd]<kka_f]\Nh][aYdOYp^gj ]Y[‘<kk]kkgj{kKYj[]d g^ ?]n]dgh]\ Kjgh]jlq* Ydd ?]n]dgh]\ Kjgh]jlq k‘Ydd Z] Ykka_f]\ lg gf] g^ l‘] GYf\ Pk] >dYkk]k \]ka_fYl]\ af OYZd] / Z]dgo, Naf_d] AYeadq ?]lY[‘]\ Kjgh]jlq k‘Ydd Z] Ykka_f]\ lg GYf\ Pk] >dYkk]k / l‘jgm_‘ /2 ZYk]\ gf =mad\af_ NimYj] AgglY_], Naf_d] AYeadq<llY[‘]\ Kjgh]jlqk‘Ydd Z]Ykka_f]\ lg GYf\Pk] >dYkk]k/3 l‘jgm_‘ /7 ZYk]\ gf =mad\af_ NimYj] AgglY_], <hYjle]fl mfalk k‘Ydd Z] Ykka_f]\ lg GYf\ Pk] >dYkk 0., >gf_j]_Yl] >Yj] Kjgh]jlq k‘Ydd Z] Ykka_f]\ lg GYf\ Pk] >dYkk 0/, Cgl]d Kjgh]jlq k‘Ydd Z] Ykka_f]\ lg GYf\ Pk] >dYkk 00, >gee]j[aYd Kjgh]jlq k‘Ydd Z] Ykka_f]\ lg GYf\ Pk] >dYkk 01, M]_agfYd >gee]j[aYd >]fl]j Kjgh]jlq k‘Ydd Z] Ykka_f]\ lg GYf\ Pk] >dYkk 02, C. MAXIMUM SPECIAL TAX RATE /,?]n]dgh]\ Kjgh]jlq Y,HYpaeme Nh][aYd OYp O‘] HYpaeme Nh][aYd OYp ^gj ]Y[‘ <kk]kkgj{k KYj[]d [dYkka^a]\ Yk ?]n]dgh]\ Kjgh]jlq k‘Ydd Z] l‘] _j]Yl]j g^ ’a( l‘] Yegmfl \]jan]\ Zq Yhhda[Ylagf g^ l‘] =Y[cmh Nh][aYd OYp gj ’aa( l‘] Yegmfl \]jan]\ Zq Yhhda[Ylagf g^ l‘] <kka_f]\ Nh][aYd OYp, Z,DfalaYd <kka_f]\ Nh][aYd OYp]k O‘] Aak[Yd T]Yj /773+74 DfalaYd <kka_f]\ Nh][aYd OYp ^gj ]Y[‘ GYf\ Pk] >dYkk ak k‘gof Z]dgo af OYZd] /, <+4 TABLE 1 Initial Assigned Special Taxes for Developed Property in Community Facilities District No. 1 (Fiscal Year 1995-96) Land Use Class Description Building Square Footage FY 1995-96 Assigned Special Tax /Naf_d] AYeadq ?]lY[‘]\ Kjgh]jlq v 2*3.. ki, ^l,#2*/22,55 h]j mfal 0 Naf_d] AYeadq ?]lY[‘]\ Kjgh]jlq 2*... w 2*227 ki, ^l,#1*37.,7/ h]j mfal 1 Naf_d] AYeadq ?]lY[‘]\ Kjgh]jlq 1*43. w 1*777 ki, ^l #1*027,26 h]j mfal 2 Naf_d] AYeadq ?]lY[‘]\ Kjgh]jlq 1*13. w 1*427 ki, ^l,#0*36/,6. h]j mfal 3 Naf_d] AYeadq ?]lY[‘]\ Kjgh]jlq 1*0.. w 1*127 ki, ^l,#0*264,42 h]j mfal 4 Naf_d] AYeadq ?]lY[‘]\ Kjgh]jlq 1*.3. w 1*/77 ki, ^l,#0*167,70 h]j mfal 5 Naf_d] AYeadq ?]lY[‘]\ Kjgh]jlq 0*7.. w 1*.27 ki, ^l,#0*/54,0. h]j mfal 6 Naf_d] AYeadq ?]lY[‘]\ Kjgh]jlq 0*53. w 0*677 ki, ^l,#/*74.,70 h]j mfal 7 Naf_d] AYeadq ?]lY[‘]\ Kjgh]jlq 0*23. w 0*527 ki, ^l,#/*64/,.6 h]j mfal /. Naf_d] AYeadq ?]lY[‘]\ Kjgh]jlq 0*/3. w 0*227 ki, ^l,#/*54/,02 h]j mfal // Naf_d] AYeadq ?]lY[‘]\ Kjgh]jlq /*63. w 0*/27 ki, ^l,#/*44/,2. h]j mfal /0 Naf_d] AYeadq ?]lY[‘]\ Kjgh]jlq /*33. w /*627 ki, ^l,#/*34.,.. h]j mfal /1 Naf_d] AYeadq ?]lY[‘]\ Kjgh]jlq /*03. w /*327 ki, ^l,#/*2.5,/0 h]j mfal /2 Naf_d] AYeadq ?]lY[‘]\ Kjgh]jlq : /*03. ki, ^l,#/*104,.. h]j mfal /3 Naf_d] AYeadq <llY[‘]\ Kjgh]jlq v 0*/3. ki, ^l,#0*..5,50 h]j mfal /4 Naf_d] AYeadq <llY[‘]\ Kjgh]jlq /*63. w 0*/27 ki, ^l,#/*6/5,2. h]j mfal /5 Naf_d] AYeadq <llY[‘]\ Kjgh]jlq /*33. w /*627 ki, ^l,#/*.31,.. h]j mfal /6 Naf_d] AYeadq <llY[‘]\ Kjgh]jlq /*03. w /*327 ki, ^l,#73/,4. h]j mfal /7 Naf_d] AYeadq <llY[‘]\ Kjgh]jlq : /*03. ki, ^l,#63.,0. h]j mfal 0. <hYjle]fl Kjgh]jlq I<#526,6. h]j mfal 0/ >gf_j]_Yl] >Yj] Kjgh]jlq I<#526,6. h]j jgge 00 Cgl]d Kjgh]jlq I<#526,6. h]j jgge 01 >gee]j[aYd Kjgh]jlq I<#2*130,2. h]j Y[j] 02 M]_agfYd >gee]j[aYd >]fl]j Kjgh]jlq I<#0*041,51 h]j Y[j] [,Df[j]Yk]k af l‘] DfalaYd <kka_f]\ Nh][aYd OYp O‘] DfalaYd <kka_f]\ Nh][aYd OYp af OYZd] / k‘Ydd Z] Yhhda[YZd] ^gj Aak[Yd T]Yj /773+74* Yf\ k‘Ydd af[j]Yk] l‘]j]Y^l]j* [gee]f[af_ gf Emdq /* /774* Yf\ gf ]Y[‘Emdq / mh lg Yf\ af[dm\af_ Emdq /* 0...* Y[[gj\af_ lg l‘] Df^dYlagf Df\]p* oal‘ Y eYpaeme YffmYd af[j]Yk] g^ ^gmj h]j[]fl ’2,..$( Yf\ Y eafaeme YffmYd af[j]Yk] g^ log h]j[]fl ’0,..$(, O‘] af[j]Yk] af l‘] <kka_f]\ Nh][aYd OYp ^gj <kk]kkgj{k KYj[]dk g^ ?]n]dgh]\ Kjgh]jlq k‘Ydd Z] log h]j[]fl ’0,..$( h]j q]Yj, =]_affaf_ Emdq /* 0../ Yf\ gf ]Y[‘ Emdq / l‘]j]Y^l]j* l‘] DfalaYd <kka_f]\ Nh][aYd OYp Yf\ l‘] <kka_f]\ Nh][aYd OYp ^gj <kk]kkgj{k KYj[]dk g^ ?]n]dgh]\ Kjgh]jlq k‘Ydd Z] af[j]Yk]\ Zq log h]j[]fl ’0,..$( h]j q]Yj, Igloal‘klYf\af_ l‘] YZgn]* gf Emdq /* 0./0* l‘] <kka_f]\ Nh][aYd OYp ^gj M]_agfYd >gee]j[aYd >]fl]j Kjgh]jlq k‘Ydd Z] af[j]Yk]\ lg #3*2.. h]j Y[j]* Yf\ k‘Ydd Z] af[j]Yk]\ Zq log h]j[]fl ’0,..$( gf ]Y[‘ Emdq /* l‘]j]Y^l]j, \,Hmdlahd] GYf\ Pk] >dYkk]k Df kge] afklYf[]k Yf <kk]kkgj{k KYj[]d g^ ?]n]dgh Kjgh]jlq eYq [gflYaf Zgl‘ <hYjle]fl Kjgh]jlq Yf\ >gee]j[aYd Kjgh]jlq, O‘] <kka_f]\ Nh][aYd OYp ^gj km[‘ Yf <kk]kkgj{k KYj[]d k‘Ydd Z] l‘] kmeeYlagf g^ l‘] <kka_f]\ Nh][aYd OYp]k ^gj Zgl‘ l‘] <hYjle]fl Kjgh]jlq Yf\ <+5 >gee]j[aYd Kjgh]jlq dg[Yl]\ gf l‘Yl <kk]kkgj{k KYj[]d, Df eYcaf_ l‘ak [Yd[mdYlagf* l‘] <kka_f]\ Nh][aYd OYp Yddg[Yl]\ lg >gee]j[aYd Kjgh]jlq k‘Ydd ]imYd l‘] <[j]Y_] g^ l‘] <kk]kkgj{k KYj[]d lae]k l‘] <kka_f]\ Nh][aYd OYp h]j Y[j] g^ >gee]j[aYd Kjgh]jlq, O‘] @ph][l]\ Nh][aYd OYp ^gj Yf <kk]kkgj{k KYj[]d [gflYafaf_ Zgl‘ <hYjle]fl Kjgh]jlq Yf\ >gee]j[aYd Kjgh]jlq k‘Ydd Z] l‘] kmeeYlagf g^ l‘] <kka_f]\ Nh][aYd OYp]k ^gj l‘] <hYjle]fl Kjgh]jlq Yf\ l‘] <kka_f]\ Nh][aYd OYp h]j Y[j] g^ >gee]j[aYd Kjgh]jlq lae]k l‘] Y[j]Y_] g^ l‘] hgjlagf g^ l‘] <kk]kkgj{k KYj[]d Yddg[Yl]\ lg >gee]j[aYd Kjgh]jlq, Agj hmjhgk]k g^ [gehmlaf_ l‘] @ph][l]\ Nh][aYd OYp* l‘] Y[j]Y_] g^ l‘] hgjlagf g^ l‘] <kk]kkgj{k KYj[]d Yddg[Yl]\ lg >gee]j[aYd Kjgh]jlq k‘Ydd Z] \]l]jeaf]\ ZYk]\ gf l‘] jYlag g^ l‘] Bjgkk Adggj <j]Y g^ l‘] >gee]j[aYd Kjgh]jlq lg l‘] lglYd Bjgkk Adggj <j]Y Yf\ =mad\af_ NimYj] AgglY_] dg[Yl]\ gf l‘] <kk]kkgj{k KYj[]d, ],=Y[cmh Nh][aYd OYp O‘] =Y[cmh Nh][aYd OYp k‘Ydd Z] l‘] d]kk]j g^ ’a( #.,1/02 h]j kimYj] ^ggl g^ <kk]kkgj{k KYj[]d* gj ’aa( l‘] Yegmfl [Yd[mdYl]\ oal‘ ]Y[‘ akkmYf[] g^ =gf\k hmjkmYfl lg l‘] ^gddgoaf_ ^gjemdY8 [(#%’ 1.1)+"$ ( "&]÷ (&"’ 0.85) R‘]j] l‘] l]jek mk]\ af l‘] ^gjemdY ‘Yn] l‘] ^gddgoaf_ e]Yfaf_8 ?N; O‘] ‘a_‘]kl \ak[gmfl]\ YffmYd \]Zl k]jna[] gf gmlklYf\af_ =gf\k* mkaf_ Y\ak[gmfl jYl]g^logh]j[]flYf\\ak[gmflaf_lgl‘]Aak[Yd T]Yjafo‘a[‘ Yfq k]ja]k g^ =gf\k Yj] akkm]\, <@; <\eafakljYlan] @ph]fk]k ^gj l‘] egkl j][]fl Aak[Yd T]Yj, <O; O‘] lglYd g^ <kka_f]\ Nh][aYd OYp]k l‘Yl [Yf Z] [gdd][l]\ ^jge hYj[]dk g^ ?]n]dgh]\ Kjgh]jlq Yk g^ l‘] \Yl] l‘] egkl j][]fl k]ja]k g^ =gf\k o]j] Y[lmYddq akkm]\, O<; O‘] Yfla[ahYl]\ <[j]Y_] g^ ?]n]dgh]\ Kjgh]jlq ’af kimYj] ^]]l( Yl ^mdd Zmad\gml g^ >A? Ig, /* ]p[dm\af_ l‘] lYpYZd] <[j]Y_] g^ hYj[]dk l‘Yl Yj] ?]n]dgh]\ Kjgh]jlq Yk g^ l‘] \Yl] Yfq k]ja]k g^ =gf\k Yj] Y[lmYddq akkm]\* \]l]jeaf]\ Zq j]^]j]f[] lg <llY[‘e]fl <* Zq l‘] >alq HYfY_]j ’l‘] >alq HYfY_]j eYq j]im]kl Y []jla^a[Ylagf Yk lg l‘] <[j]Y_] ^gj hmjhgk]k g^ l‘ak [Yd[mdYlagf ^jge ]f_af]]jk afngdn]\ af Yfq hjgb][lk hjghgk]\ ^gj gj mf\]j \]n]dghe]fl oal‘af >A? Ig, /(, O‘] =Y[cmh Nh][aYd OYp k‘Ydd Z] Yhhda]\ lg l‘] <[j]Y_] g^ ]Y[‘ <kk]kkgj{k KYj[]d e]Ykmj]\ af kimYj] ^]]l, O‘] dYf\ Yj]Y Yhhda[YZd] lg Y [gf\geafame* <hYjle]fl* gj >gf_j]_Yl] >Yj] \o]ddaf_ mfal k‘Ydd Z] [gehml]\ ^jge l‘] <[j]Y_] g^ l‘] dgl gf o‘a[‘ l‘] [gf\geafame* <hYjle]fl* gj >gf_j]_Yl] >Yj] \o]ddaf_ mfal ak dg[Yl]\* oal‘ l‘] <[j]Y_] ^gj km[‘ dgl \ana\]\ ]imYddq Yegf_ Ydd g^ l‘] \o]ddaf_ mfalk dg[Yl]\ gf km[‘ dgl, D^ Yf <kk]kkgj{k KYj[]d g^ ?]n]dgh]\ Kjgh]jlq [gflYafk Zgl‘ <hYjle]fl Kjgh]jlq Yf\ >gee]j[aYd Kjgh]jlq* l‘] dYf\ Yj]Y Yddg[Yl]\ lg <hYjle]fl Kjgh]jlq k‘Ydd Z] \]l]jeaf]\ ZYk]\ gf l‘] jYlag g^ l‘] =mad\af_ NimYj] AgglY_] g^ l‘] <hYjle]fl lg l‘] lglYd Bjgkk Adggj <j]Y Yf\ =mad\af_NimYj]AgglY_]dg[Yl]\gfl‘]<kk]kkgj{kKYj[]d, O‘]dYf\Yj]Y Yddg[Yl]\lg>gee]j[aYd Kjgh]jlq k‘Ydd Z] \]l]jeaf]\ ZYk]\ gf l‘] jYlag g^ l‘] Bjgkk Adggj <j]Y g^ l‘] >gee]j[aYd Kjgh]jlq lg l‘] lglYd Bjgkk Adggj <j]Y Yf\ =mad\af_ NimYj] AgglY_] dg[Yl]\ gf l‘] <kk]kkgj{k KYj[]d, <+6 ^,Df[j]Yk] af l‘] =Y[cmh Nh][aYd OYp O‘]=Y[cmh Nh][aYdOYp\]l]jeaf]\ hmjkmYfl lgN][lagf>,],’a( YZgn] k‘Ydd Z]Yhhda[YZd] ^gj Aak[Yd T]Yj /773+74 Yf\ k‘Ydd af[j]Yk] Zq log h]j[]fl ’0$( YffmYddq ]Y[‘ Aak[Yd T]Yj l‘]j]Y^l]j, O‘] =Y[cmh Nh][aYd OYp \]l]jeaf]\ hmjkmYfl lg N][lagf >,], ’aa( YZgn] k‘Ydd Z] Yhhda[YZd] klYjlaf_ af l‘] Aak[Yd T]Yj af o‘a[‘ Yfq k]ja]k g^ =gf\k Yj] Y[lmYddq akkm]\ Yf\ k‘Ydd af[j]Yk] Zq log h]j[]fl ’0$( YffmYddq l‘]j]Y^l]j, O‘] =Y[cmh Nh][aYd OYp gf Yf <kk]kkgj{k KYj[]d g^ ?]n]dgh]\ Kjgh]jlq k‘Ydd af[j]Yk] Zq log h]j[]fl ’0$( ]Y[‘ Aak[Yd T]Yj Yf\ k‘Ydd fgl af[j]Yk] Yk Y j]kmdl g^ =gf\k akkm]\ kmZk]im]fl lg l‘] \Yl] Y Zmad\af_ h]jeal ak akkm]\ oal‘ j]kh][l lg km[‘ <kk]kkgj{k KYj[]d, _,Gaealk gf Nh][aYd OYp gf M]ka\]flaYd Kjgh]jlq KmjkmYfl lgN][lagf 3110/g^ l‘] <[l*mf\]jfg[aj[meklYf[]kk‘Ydd l‘]Nh][aYdOYpd]na]\ Y_Yafkl Yfq <kk]kkgj{k KYj[]d g^ M]ka\]flaYd Kjgh]jlq Z] af[j]Yk]\ Zq egj] l‘Yf l]f h]j[]fl ’/.,..$( YkY [gfk]im]f[]g^ \]dafim]f[qgj \]^Ymdl Zql‘]gof]j g^Yfqgl‘]j <kk]kkgj{kKYj[]d, <f af[j]Yk] g^ l]f h]j[]fl ’/.,..$( gj egj] k‘Ydd Z] \]l]jeaf]\ Zq [gehYjakgf lg o‘Yl l‘] d]nq g^ Nh][aYd OYp ogmd\ Z] ^gj Yfq <kk]kkgj{k KYj[]d a^ l‘]j] o]j] fg \]dafim]f[a]k gj \]^Ymdlk gf Yfq gl‘]j <kk]kkgj{k KYj[]d af l‘] >A?, 0,Pf\]n]dgh]\ Kjgh]jlq* <_ja[mdlmjYd Kjgh]jlq* Yf\ OYpYZd] Kjgh]jlq Jof]j <kkg[aYlagf Kjgh]jlq Y,HYpaeme Nh][aYd OYp O‘]HYpaemeNh][aYdOYp^gj Pf\]n]dgh]\Kjgh]jlqk‘Ydd Z]#10*/1.h]j Y[j]^gj Aak[Yd T]Yj /773+74, O‘] HYpaeme Nh][aYd OYp ^gj <_ja[mdlmjYd Kjgh]jlq k‘Ydd Z] #6*/4. h]j Y[j] ^gj Aak[Yd T]Yj /773+74, O‘] HYpaeme Nh][aYd OYp ^gj OYpYZd] Kjgh]jlq Jof]j <kkg[aYlagf Kjgh]jlq k‘Ydd Z] #10*/1. h]j Y[j] ^gj Aak[Yd T]Yj /773+74, Z,Hmdlahd] GYf\ Pk]k Df kge] afklYf[]k Y kaf_d] <kk]kkgj{k KYj[]d eYq [gfkakl g^ egj] l‘Yf gf] lqh] g^ hjgh]jlq ’a,], Pf\]n]dgh]\ Kjgh]jlq* <_ja[mdlmjYd Kjgh]jlq* gj KmZda[ Kjgh]jlq(, O‘] HYpaeme Nh][aYd OYp ^gj km[‘ Yf <kk]kkgj{k KYj[]d k‘Ydd Z] ZYk]\ gf l‘] fmeZ]j g^ <[j]k \]ngl]\ lg ]Y[‘ dYf\ mk]* Yk \]l]jeaf]\ Zq l‘] >alq HYfY_]j* Yf\ k‘Ydd ]imYd l‘] kme g^ l‘] HYpaeme Nh][aYd OYp]k ^gj ]Y[‘ k]_e]fl g^ OYpYZd] Kjgh]jlq dg[Yl]\ gf l‘] <kk]kkgj{k KYj[]d, [,Df[j]Yk]k af l‘] HYpaeme Nh][aYd OYp Jf ]Y[‘ Emdq /* [gee]f[af_ Emdq /* /774* l‘] HYpaeme Nh][aYd OYp ^gj Pf\]n]dgh]\ Kjgh]jlq* <_ja[mdlmjYd Kjgh]jlq* Yf\ OYpYZd] Kjgh]jlq Jof]j <kkg[aYlagf Kjgh]jlq k‘Ydd Z] af[j]Yk]\ Zq log h]j[]fl ’0,..$( g^ l‘] Yegmfl af ]^^][l af l‘] hj]nagmk Aak[Yd T]Yj, D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX >gee]f[af_ oal‘ Aak[Yd T]Yj /774+75 Yf\ ^gj ]Y[‘ ^gddgoaf_ Aak[Yd T]Yj* Yf\ hjagj lg l‘] ^afYd \Yl] gf o‘a[‘ l‘] >gmflq<m\algj oadd Y[[]hl l‘] d]nq^gj af[dmkagf gf l‘] Y\ nYdgj]ej]Yd hjgh]jlqlYp jgdd^gj km[‘ Aak[Yd T]Yj* l‘] >alq HYfY_]j k‘Ydd \]l]jeaf] l‘] Nh][aYd OYp M]imaj]e]fl lg Z] [gdd][l]\ ^jge OYpYZd] Kjgh]jlq af >A? Ig, / af km[‘ Aak[Yd T]Yj, O‘] Nh][aYd OYp k‘Ydd Z] d]na]\ Yk ^gddgok mflad l‘] Yegmfl g^ l‘] d]nq ]imYdk l‘] <+7 Nh][aYd OYp M]imaj]e]fl*kmZb][l lgl‘]daealYlagfkkh][a^a]\‘]j]af Yf\ af l‘]^afYdhYjY_jYh‘ g^ N][lagf3110/’\( g^ l‘] <[l, Aajkl8 O‘] Nh][aYd OYp k‘Ydd Z] d]na]\ af ]imYd h]j[]flY_]k gf ]Y[‘ <kk]kkgj{k KYj[]d g^ \]n]dgh]\ Kjgh]jlq ’]p[]hl <kk]kkgj{k KYj[]dk [gflYafaf_ Zgl‘ <hYjle]fl Kjgh]jlq Yf\ >gee]j[aYd Kjgh]jlq( mh lg /..$ g^ l‘] Yhhda[YZd] <kka_f]\ Nh][aYd OYp ^gj km[‘ <kk]kkgj{k KYj[]d Yf\ mh lg /..$ g^ l‘] @ph][l]\ Nh][aYd OYp ^gj <kk]kkgj{k KYj[]dk [gflYafaf_ Zgl‘ <hYjle]fl Kjgh]jlq Yf\ >gee]j[aYd Kjgh]jlq9 N][gf\8 D^ Y\\alagfYd egfa]k Yj] f]]\]\ Y^l]j l‘] ^ajkl kl]h ‘Yk Z]]f [gehd]l]\* l‘] Nh][aYd OYp k‘Ydd Z] d]na]\ af ]imYd h]j[]flY_]k gf ]Y[‘ <kk]kkgj{k KYj[]d g^ Pf\]n]dgh]\ Kjgh]jlq* mh lg /..$ g^ l‘] HYpaeme Nh][aYd OYp ^gj Pf\]n]dgh]\ Kjgh]jlq9 O‘aj\8 D^ Y\\alagfYd egfa]k Yj] f]]\]\ Y^l]j l‘] ^ajkl log kl]hk ‘Yn] Z]]f [gehd]l]\ l‘]f l‘] Nh][aYd OYp gf ]Y[‘ <kk]kkgj{k KYj[]d g^ ?]n]dgh]\ Kjgh]jlq [gflYafaf_ Zgl‘ <hYjle]fl Kjgh]jlq Yf\ >gee]j[aYd Kjgh]jlq k‘Ydd Z] af[j]Yk]\ ^jge l‘] @ph][l]\ Nh][aYd OYp mh lg /..$ g^ l‘] <kka_f]\ Nh][aYd OYp ^gj km[‘ <kk]kkgj{k KYj[]dk9 Agmjl‘8 D^ Y\\alagfYd egfa]k Yj] f]]\]\ Y^l]j l‘] ^ajkl l‘j]] kl]hk ‘Yn] Z]]f [gehd]l]\* l‘] Nh][aYd OYp k‘Ydd Z] d]na]\ af ]imYd h]j[]flY_]k gf ]Y[‘ <kk]kkgj{k KYj[]d g^ <_ja[mdlmjYd Kjgh]jlq* mh lg /..$ g^ l‘] HYpaeme Nh][aYd OYp ^gj <_ja[mdlmjYd Kjgh]jlq9 Aa^l‘8 D^ Y\\alagfYd egfa]k Yj] f]]\]\ Y^l]j l‘] ^ajkl ^gmj kl]hk ‘Yn] Z]]f [gehd]l]\* l‘]f l‘] d]nq g^ l‘] Nh][aYdOYpgf]Y[‘<kk]kkgj{kKYj[]d g^?]n]dgh]\Kjgh]jlqo‘gk]HYpaemeNh][aYdOYpak\]l]jeaf]\l‘jgm_‘ l‘] Yhhda[Ylagf g^ l‘] =Y[cmh Nh][aYd OYp k‘Ydd Z] af[j]Yk]\ af ]imYd h]j[]flY_]k ^jge l‘] <kka_f]\ Nh][aYd OYp mh lg l‘] HYpaeme Nh][aYd OYp ^gj ]Y[‘ km[‘ <kk]kkgj{k KYj[]d9 Yf\ Napl‘8 D^ Y\\alagfYd egfa]k Yj] f]]\]\ Y^l]j l‘] ^ajkl ^an] kl]hk ‘Yn] Z]]f [gehd]l]\* l‘]f l‘] Nh][aYd OYp k‘Ydd Z] d]na]\ af ]imYd h]j[]flY_]k gf ]Y[‘ <kk]kkgj{k KYj[]d g^ OYpYZd] Kjgh]jlq Jof]j <kkg[aYlagf Kjgh]jlq mh lg l‘] HYpaeme Nh][aYd OYp ^gj OYpYZd] Kjgh]jlq Jof]j <kkg[aYlagf Kjgh]jlq, E. EXEMPTIONS O‘] >gmf[ad k‘Ydd fgl d]nq Y Nh][aYd OYp gf l‘] ^gddgoaf_8 /( Ph lg Y lglYd g^ 223,2 Y[j]k g^ Kjgh]jlq Jof]j <kkg[aYlagf Kjgh]jlq Yf\ KmZda[ Kjgh]jlq* ]p[]hl Yk gl‘]joak] hjgna\]\af N][lagfk 311/5,1* 311/5,3* Yf\ 3112.,/g^ l‘] <[l9 Yf\ 0(Ph lg Y lglYd g^ 53 \o]ddaf_ mfalk ’dg[Yl]\ gf mh lg 1,3 Y[j]k( g^ <^^gj\YZd] Cgmkaf_ Kjgh]jlq, OYp ]p]ehl klYlmk oadd Z] \]l]jeaf]\ Zq l‘] >alq HYfY_]j Yf\ ajj]ng[YZdq Ykka_f]\ af l‘] [‘jgfgdg_a[Yd gj\]j af o‘a[‘ hjgh]jlq ak \]ka_fYl]\ KmZda[ Kjgh]jlq, Kjgh]jlq Jof]j <kkg[aYlagf Kjgh]jlq* gj <^^gj\YZd] Cgmkaf_ Kjgh]jlq, D^ l‘] lglYd fmeZ]j g^ Y[j]k g^ KmZda[ Kjgh]jlq gj Kjgh]jlq Jof]j <kkg[aYlagf Kjgh]jlq [gfn]q]\ ]p[]]\k l‘] Yegmfl klYl]\ YZgn]* l‘]f l‘] Y[j]k ]p[]]\af_ km[‘ lglYd k‘Ydd Z] lYp]\ Yl l‘] Yhhda[YZd] jYl] k]l ^gjl‘ af N][lagf >,0 YZgn] Yf\ lg l‘] ]pl]fl k]l ^gjl‘ af N][lagf ? YZgn], D^ l‘] lglYd fmeZ]j g^ mfalk gj Y[j]k g^ <^^gj\YZd] Cgmkaf_ Kjgh]jlq ]p[]]\k l‘] Yegmfl klYl]\ YZgn]* l‘]f l‘] mfalk ]p[]]\af_ km[‘ lglYd k‘Ydd Z] [gfka\]j]\ OYpYZd] Kjgh]jlq Yf\ k‘Ydd Z] lYp]\ Yl l‘] Yhhda[YZd] jYl] ^gj M]ka\]flaYd Kjgh]jlq k]l ^gjl‘ af N][lagf >,/ YZgn] Yf\ lg l‘] ]pl]fl k]l ^gjl‘ af N][lagf ? YZgn], F. MANNER OF COLLECTION O‘]Nh][aYd OYpoadd Z] [gdd][l]\ afl‘] kYe] eYff]j Yf\ Yl l‘]kYe] laf] Yk gj\afYjqY\ nYdgj]ehjgh]jlq lYp]k9 hjgna\]\* ‘go]n]j* l‘Yl hj]hYqe]flk Yj] h]jeall]\ Yk k]l ^gjl‘ af N][lagfk B Yf\ C Z]dgo Yf\ hjgna\]\ ^mjl‘]j l‘Yl >A? Ig, / eYq \aj][ldq Zadd l‘] Nh][aYd OYp* eYq [gdd][l Nh][aYd OYp]k Yl Y \a^^]j]fl lae] gj af Y <+/. \a^^]j]fl eYff]j a^ f][]kkYjq lg e]]l alk ^afYf[aYd gZda_Ylagfk* Yf\ eYq [gn]fYfl lg ^gj][dgk] Yf\ eYq Y[lmYddq ^gj][dgk] gf \]dafim]fl hYj[]dk Yk h]jeall]\ Zq l‘] <[l, G. PREPAYMENT OF SPECIAL TAX O‘] ^gddgoaf_ \]^afalagfk Yhhdq lg l‘ak N][lagf B8 yFuture Facilities Costz e]Yfk l‘] \a^^]j]f[] Z]lo]]f l‘] KmZda[ AY[adala]k M]imaj]e]flk Yf\ l‘] \gddYj Yegmfl \]hgkal]\ lg l‘] >gfkljm[lagf Amf\ ^jge l‘] hjg[]]\k g^ Kj]nagmkdq Dkkm]\ =gf\k hdmk l‘] \gddYj Yegmfl g^ hmZda[ ^Y[adalq [gklk ^mf\]\ Zq afl]j]kl ]Yjfaf_k gf l‘] >gfkljm[lagf Amf\ ]klYZdak‘]\ af l‘] Aak[Yd <_]fl <_j]]e]fl Y[lmYddq ]Yjf]\ hjagj lg l‘] \Yl] g^ hj]hYqe]fl hdmk l‘] \gddYj Yegmfl g^ hmZda[ ^Y[adalq [gklk ^mf\]\ \aj][ldq oal‘ Nh][aYd OYp]k hjagj lg l‘] \Yl] g^ hj]hYqe]fl, yOutstanding Bondsz e]Yfk Ydd Kj]nagmkdq Dkkm]\ =gf\k o‘a[‘ j]eYaf gmlklYf\af_, yPreviously Issued Bondsz e]Yfk Ydd =gf\k l‘Yl ‘Yn] Z]]f akkm]\ Zq >A? Ig, / hjagj lg l‘] \Yl] g^ hj]hYqe]fl, yPublic Facilities Requirementsz e]Yfk #1.*0/7*.22 af /773 \gddYjk* Yf\ k‘Ydd af[j]Yk] Zq l‘] Df^dYlagf Df\]p gf Emdq /* /774* Yf\ gf ]Y[‘ Emdq / l‘]j]Y^l]j* gj km[‘ dgo]j fmeZ]j Yk ’a( k‘Ydd Z] \]l]jeaf]\ Zq l‘] >alq HYfY_]j lg Z] km^^a[a]fl lg hjgna\] l‘] hmZda[ ^Y[adala]k lg Z] hjgna\]\ Zq >A? Ig, /* gj ’aa( k‘Ydd Z] \]l]jeaf]\ Zq l‘] >alq HYfY_]j [gf[mjj]fldq oal‘ l‘] Y\ghlagf g^ Y [gn]fYfl l‘Yl >A? Ig, / oadd fgl akkm] Yfq Y\\alagfYd =gf\k ’fgl af[dm\af_ j]^mf\af_ Zgf\k( lg Z] kmhhgjl]\ Zq Nh][aYd OYp]k d]na]\ mf\]j l‘ak MYl] Yf\ H]l‘g\ g^ <hhgjlagfe]fl ^gj >A? Ig, / Yk \]k[jaZ]\ af N][lagf ?, O‘] Nh][aYd OYp gZda_Ylagf ^gj Yf <kk]kkgj{k KYj[]d g^ ?]n]dgh]\ Kjgh]jlq gj Pf\]n]dgh]\ Kjgh]jlq af >A?Ig,/ eYqZ]hj]hYa\Yf\l‘]gZda_Ylagfg^l‘] <kk]kkgj{kKYj[]dlghYql‘] Nh][aYdOYph]jeYf]fldqkYlak^a]\ Yk \]k[jaZ]\ ‘]j]af* hjgna\]\ l‘Yl Y hj]hYqe]fl eYq Z] eY\] gfdq a^ l‘]j] Yj] fg \]dafim]fl Nh][aYd OYp]k oal‘ j]kh][llgkm[‘ <kk]kkgj{k KYj[]d Yl l‘]lae] g^ hj]hYqe]fl, <f gof]j g^Yf <kk]kkgj{kKYj[]dafl]f\af_lg hj]hYq l‘] Nh][aYd OYp gZda_Ylagf k‘Ydd hjgna\] >A? Ig, / oal‘ ojall]f fgla[] g^ afl]fl lg hj]hYq, Ral‘af 1. \Yqk g^ j][]ahl g^ km[‘ ojall]f fgla[]* >A? Ig, / k‘Ydd fgla^q km[‘ gof]j g^ l‘] Kj]hYqe]fl <egmfl ^gj km[‘ <kk]kkgj{k KYj[]d Yf\ eYq [‘Yj_] Y j]YkgfYZd] ^]] ^gj hjgna\af_ l‘ak k]jna[], Kj]hYqe]fl emkl Z] eY\] fgl d]kk l‘Yf 4. \Yqk hjagj lg Yfq j]\]ehlagf \Yl] ^gj =gf\k lg Z] j]\]]e]\ oal‘ l‘] hjg[]]\k g^ km[‘ hj]hYa\ Nh][aYd OYp]k, O‘] Kj]hYqe]fl <egmfl ’\]^af]\ Z]dgo( k‘Ydd Z] [Yd[mdYl]\ Yk kmeeYjar]\ Z]dgo ’[YhalYdar]\ l]jek Yk \]^af]\ Yk \]^af]\ Z]dgo(8 Bond Redemption Amount <k g^ l‘] hjghgk]\ \Yl] g^ hj]hYqe]fl* l‘] Kj]hYqe]fl <egmfl ’\]^af]\ Z]dgo( k‘Ydd Z] [Yd[mdYl]\ Yk ^gddgok8 /,’Y( Agj Yf <kk]kkgj{k KYj[]d g^ ?]n]dgh]\ Kjgh]jlq gj Yf <kk]kkgj{k KYj[]d g^ Pf\]n]dgh]\ Kjgh]jlq ^gj o‘a[‘ Y Zmad\af_ h]jeal ‘Yk Z]]f akkm]\8 [gehml] l‘] <kka_f]\ Nh][aYd OYp Yf\ =Y[cmh Nh][aYd OYp ’mkaf_ l‘] =Y[cmh Nh][aYd OYp h]j kimYj] ^ggl af\a[Yl]\ af N][lagf >,/,]’a(( ^gj l‘] <kk]kkgj{k KYj[]d lg Z] hj]hYa\9 gj ’Z( Agj Yf <kk]kkgj{k KYj[]d g^ Pf\]n]dgh]\ Kjgh]jlq ^gj o‘a[‘ fg Zmad\af_ h]jeal ‘Yk Z]]f akkm]\8 ’a(a^l‘]]flaj]Nh][aYdOYpdaYZadalq^gjl‘] <kk]kkgj{kKYj[]dakZ]af_hj]hYa\*emdlahdql‘]=Y[cmh Nh][aYd OYp af\a[Yl]\ af N][lagf >,/,],’a( lae]k l‘] kimYj] ^gglY_] g^ l‘] <kk]kkgj{k KYj[]d* gj ’aa( a^ l‘] Nh][aYd OYp daYZadalq ^gj l‘] <kk]kkgj{k KYj[]d ak Z]af_ hYjlaYddq hj]hYa\* [Yd[mdYl] l‘] HYpaeme Nh][aYd OYp ^gj l‘] <kk]kkgj{k KYj[]d, <+// 0,@klaeYl] l‘] <kka_f]\ Nh][aYd OYp]k ^gj l‘] ]flaj] Yml‘gjar]\ Zgf\af_ hjg_jYe ^gj >A? Ig, / ’]p[dm\af_ Yfq <kk]kkgj{k KYj[]dk o‘a[‘ ‘Yn] hj]nagmkdq hj]hYa\ l‘] Nh][aYd OYp( Ykkmeaf_ l‘Yl Ydd Yfla[ahYl]\ ?]n]dgh]\ Kjgh]jlq o]j] af ]pakl]f[] Yk g^ l‘] \Yl] l‘] hj]hYqe]fl ak Z]af_ [Yd[mdYl]\, 1,@klaeYl] l‘] =Y[cmh Nh][aYd OYp]k ^gj l‘] ]flaj] Yml‘gjar]\ Zgf\af_ hjg_jYe ^gj >A? Ig, / mkaf_ l‘] =Y[cmh Nh][aYd OYp h]j kimYj] ^ggl af\a[Yl]\ af N][lagf >,/,@,’a( ’]p[dm\af_ Yfq <kk]kkgj{k KYj[]dk o‘a[‘ ‘Yn] hj]nagmkdq hj]hYa\ l‘] Nh][aYd OYp(, 2,’Y( Agj Yf <kk]kkgj{k KYj[]d g^ ?]n]dgh]\ Kjgh]jlq gj Yf <kk]kkgj{k KYj[]d g^ Pf\]n]dgh]\ Kjgh]jlq ^gj o‘a[‘ Y Zmad\af_ h]jeal ‘Yk Z]]f akkm]\8 ’a( \ana\] l‘] <kka_f]\ Nh][aYd OYp [gehml]\ hmjkmYfl lg hYjY_jYh‘ /’Y( Zq l‘] lglYd <kka_f]\ Nh][aYd OYp]k [gehml]\ hmjkmYfl lg hYjY_jYh‘ 09 Yf\ ’aa( \ana\] l‘] =Y[cmh Nh][aYd OYp [gehml]\ hmjkmYfl lg hYjY_jYh‘ /’Y( Zq l‘] lglYd =Y[cmh Nh][aYd OYp]k [gehml]\ hmjkmYfl lg hYjY_jYh‘ 19 gj ’Z( Agj Yf <kk]kkgj{k KYj[]d g^ Pf\]n]dgh]\ Kjgh]jlq ^gj o‘a[‘ fg Zmad\af_ h]jeal ‘Yk Z]]f akkm]\8 ’a( a^ l‘] ]flaj] Nh][aYd OYp daYZadalq ^gj l‘] <kk]kkgj{k KYj[]d ak Z]af_ hj]hYa\* \ana\] l‘] =Y[cmh Nh][aYdOYp[gehml]\ hmjkmYfl lghYjY_jYh‘/’Z(’a(Zql‘]lglYd =Y[cmh Nh][aYdOYp]k [gehml]\ hmjkmYfl lg hYjY_jYh‘19 gj ’aa( a^ l‘]Nh][aYdOYp daYZadalq^gj l‘] <kk]kkgj{k KYj[]d ak Z]af_hYjlaYddqhj]hYa\* \ana\] l‘] HYpaeme Nh][aYd OYp [gehml]\ hmjkmYfl lg hYjY_jYh‘ /’Z(’aa( Zq l‘] lglYd <kka_f]\ Nh][aYd OYp]k [gehml]\ hmjkmYfl lg hYjY_jYh‘ 0, 3,’Y( Agj Yf <kk]kkgj{k KYj[]d g^ ?]n]dgh]\ Kjgh]jlq gj Yf <kk]kkgj{k KYj[]d g^ Pf\]n]dgh]\ Kjgh]jlq^gj o‘a[‘YZmad\af_h]jeal‘YkZ]]fakkm]\8 emdlahdql‘]dYj_]j imgla]fl[gehml]\hmjkmYfllg hYjY_jYh‘ 2’Y(’a( gj 2’Y(’aa( Zql‘] JmlklYf\af_=gf\k lg [gehml]l‘] Yegmfl g^ JmlklYf\af_ =gf\k lg Z] j]laj]\ Yf\ hj]hYa\ ’l‘] y=gf\ M]\]ehlagf <egmflz(9 gj ’Z( Agj Yf <kk]kkgj{k KYj[]d g^ Pf\]n]dgh]\ Kjgh]jlq ^gj o‘a[‘ fg Zmad\af_ h]jeal ‘Yk Z]]f akkm]\8 emdlahdq l‘] Yhhda[YZd] imgla]fl [gehml]\ hmjkmYfl lg hYjY_jYh‘ 2’Z(’a( gj 2’Z(’aa(* \]h]f\af_ gf a^ Y ^mdd gj hYjlaYd hj]hYqe]fl ak Z]af_ eY\]* Zq l‘] JmlklYf\af_ =gf\k lg [gehml] l‘] Yegmfl g^ JmlklYf\af_ =gf\k lg Z] j]laj]\ Yf\ hj]hYa\ ’l‘] y=gf\ M]\]ehlagf <egmflz(, 4,4, >gehml] l‘] [mjj]fl Amlmj] AY[adala]k >gklk, 5,’Y( Agj Yf <kk]kkgj{k KYj[]d g^ ?]n]dgh]\ Kjgh]jlq gj Yf <kk]kkgj{k KYj[]d g^ Pf\]n]dgh]\ Kjgh]jlq^gj o‘a[‘YZmad\af_h]jeal‘YkZ]]fakkm]\8 emdlahdql‘] dYj_]j imgla]fl[gehml]\hmjkmYfllghYjY_jYh‘ 2’Y(’a( gj 2’Y(’aa( Zq l‘] Yegmfl \]l]jeaf]\ hmjkmYfl lg hYjY_jYh‘ 4 lg [gehml] l‘] Yegmfl g^ Amlmj] AY[adala]k >gklk lg Z] hj]hYa\ ’l‘] yAmlmj] AY[adala]k <egmflz(9 gj ’Z( Agj Yf <kk]kkgj{k KYj[]d g^ Pf\]n]dgh]\ Kjgh]jlq ^gj o‘a[‘ fg Zmad\af_ h]jeal ‘Yk Z]]f akkm]\8 emdlahdq l‘] Yhhda[YZd] imgla]fl [gehml]\ hmjkmYfl lg hYjY_jYh‘ 2’Z(’a( gj 2’Z(’aa(* \]h]f\af_ gf a^Y^mddgjhYjlaYdhj]hYqe]flakZ]af_eY\]*Zql‘]Yegmfl\]l]jeaf]\hmjkmYfllghYjY_jYh‘4lg[gehml] l‘] Yegmfl g^ Amlmj] AY[adala]k >gklk lg Z] hj]hYa\ ’l‘] yAmlmj] AY[adala]k <egmflz(, 6,Hmdlahdq l‘] =gf\ M]\]ehlagf <egmfl [gehml]\ hmjkmYfl lg hYjY_jYh‘ 3 Zq l‘] Yhhda[YZd] j]\]ehlagfhj]eame* a^ Yfq* gf l‘] JmlklYf\af_=gf\k lg Z]j]\]]e]\ oal‘l‘]hjg[]]\kg^l‘] =gf\ M]\]ehlagf <egmfl ’l‘] yM]\]ehlagf Kj]eamez(, 7,>gehml] l‘] Yegmfl f]]\]\ lg hYq afl]j]kl gf l‘] JmlklYf\af_ =gf\k lg Z] j]\]]e]\ oal‘ l‘] hjg[]]\k g^ l‘] =gf\ M]\]ehlagf <egmfl mflad l‘] ]Yjda]kl [Ydd \Yl] ^gj JmlklYf\af_ =gf\k, /., >gehml]l‘] Yegmfl g^Nh][aYdOYp]k hYa\oal‘j]kh][llgl‘]Yhhda[YZd]<kk]kkgj{kKYj[]d \mjaf_ l‘] [mjj]fl Aak[Yd T]Yj Yf\ [gf^aje l‘Yl fg Nh][aYd OYp \]dafim]f[a]k Yhhdq lg km[‘ <kk]kkgj{k KYj[]d, O‘] Yhhda[YZd] <kk]kkgj{k KYj[]d k‘Ydd j][]an] Y [j]\al ^gj Yfq Nh][aYd OYp]k hYa\ o‘a[‘ ‘Yn] fgl q]l Z]]f mladar]\ lg <+/0 hYq l‘] Nh][aYd OYp M]imaj]e]fl* Zml fg [j]\al k‘Ydd Z] _an]f ^gj Nh][aYd OYp]k hYa\ l‘Yl ‘Yn] Ydj]Y\q Z]]f mk]\ lg hYq l‘] Nh][aYd OYp M]imaj]e]fl, //, O‘] >alq HYfY_]j* Yl ‘ak \ak[j]lagf* k‘Ydd [gehml] l‘] Yegmfl g^ afl]j]kl ]Yjfaf_k lg Z] \]jan]\ ^jge l‘] j]afn]kle]fl g^ l‘] Kj]hYqe]fl <egmfl mflad l‘] j]\]ehlagf \Yl] ^gj l‘] JmlklYf\af_ =gf\k l‘Yl oadd Z] YnYadYZd] lg g^^k]l km[‘ Kj]hYqe]fl <egmfl, /0, <\\ l‘] Yegmflk [gehml]\ hmjkmYfl l hYjY_jYh‘ 7 Yf\ kmZljY[l l‘] Yegmflk [gehml]\ hmjkmYfl lg hYjY_jYh‘k /. Yf\ // ’l‘] y?]^]YkYf[]z(, /1, O‘] Y\eafakljYlan] ^]]k Yf\ ]ph]fk]k g^ >A? Ig, / Yj] Yk [Yd[mdYl]\ Zq l‘] >alq HYfY_]j Yf\ af[dm\] l‘] [gklk g^ [gehmlYlagf g^ l‘] Kj]hYqe]fl <egmfl* l‘] [gklk g^ j]\]]eaf_ =gf\k* Yf\ l‘] [gklk g^ j][gj\af_ Yfq fgla[]k lg ]na\]f[] l‘] hj]hYqe]fl Yf\ l‘] j]\]ehlagf ’l‘] y<\eafakljYlan] A]]k Yf\ @ph]fk]kz(, /2, O‘] M]k]jn] Amf\ [j]\al* a^ Yfq* k‘Ydd Z] [Yd[mdYl]\ Yk Y j]\m[lagf af l‘] Yhhda[YZd] j]k]jn] ^mf\ j]kmdlaf_ ^jge l‘] j]\]ehlagf g^ JmlklYf\af_ =gf\k oal‘ l‘] Kj]hYqe]fl <egmfl, D^ l‘] Yhhda[YZd] j]k]jn] ^mf\ ak Z]dgo l‘] M]k]jn] M]imaj]e]fl Yk kh][a^a]\ af l‘] Aak[Yd <_]fl <_j]]e]fl* fg M]k]jn] Amf\ [j]\al k‘Ydd Z] _an]f, ’l‘] yM]k]jn] Amf\ >j]\alz(, /3, O‘] Nh][aYd OYp hj]hYqe]fl ak ]imYd lg l‘] kme g^ l‘] Yegmflk [gehml]\ hmjkmYfl lg hYjY_jYh‘k 3* 5* 6* /0 Yf\ /1* d]kk l‘] Yegmfl [gehml]\ hmjkmYfl lg hYjY_jYh‘ /2 ’l‘] yKj]hYqe]fl <egmflz(, O‘] Kj]hYqe]fl <egmfl d]kk l‘] Yegmflk [gehml]\ hmjkmYfl lg hYjY_jYh‘k 5 Yf\ /1 k‘Ydd Z] hdY[]\ af l‘] =gf\ Amf\ ]klYZdak‘]\ mf\]j l‘] Aak[Yd <_]fl <_j]]e]fl Yf\ mk]\ lg j]laj] JmlklYf\af_ =gf\k af Y[[gj\Yf[] oal‘ l‘] l]jek g^ l‘] Aak[Yd <_]fl <_j]]e]fl, O‘] Amlmj] AY[adala]k <egmfl [gehml]\ hmjkmYfl lg hYjY_jYh‘ 5 k‘Ydd Z] hdY[]\ af l‘] >gfkljm[lagf Amf\ ]klYZdak‘]\ mf\]j l‘] Aak[Yd <_]fl <_j]]e]fl lg Z] mk]\ ^gj l‘] [gfkljm[lagf Yf\-gj Y[imakalagf g^ ^mlmj] hmZda[ ^Y[adala]k af Y[[gj\Yf[] oal‘ l‘] l]jek g^ l‘] Aak[Yd <_]fl <_j]]e]fl, O‘] Yegmfl [gehml]\ hmjkmYfl lg hYjY_jYh‘ /1 k‘Ydd Z] j]lYaf]\ Zq l‘] >alq, R‘]f Y lglYd hj]hYqe]fl akeY\] gf Yf <kk]kkgj{k KYj[]d g^ Pf\]n]dgh]\ Kjgh]jlq^gj o‘a[‘ fg Zmad\af_ h]jeal ‘Yk Z]]f akkm]\* l‘] Yhhda[YZd] imgla]fl mladar]\ af hYjY_jYh‘k 3’Z( Yf\ 5’Z( k‘Ydd Z] l‘Yl [gehml]\ af hYjY_jYh‘ 2’Z(’a(, Igloal‘klYf\af_ l‘] ^gj]_gaf_* fg Nh][aYd OYp hj]hYqe]fl k‘Ydd Z] Yddgo]\ mfd]kk* af Ydd [Yk]k ’a( l‘] Yegmfl g^ eYpaeme Nh][aYd OYp]k l‘Yl eYq Z] d]na]\ gf l‘] OYpYZd] Kjgh]jlq oal‘af >A? Ig, / k‘Ydd Z] Yl d]Ykl /,/ lae]k YffmYd \]Zl k]jna[] gf Ydd JmlklYf\af_ OYp]k _]f]jYl]\ Zq l‘] <kk]kkgj{k KYj[]dk kmZb][l lg l‘] hj]hYqe]fl ]d][l lg hj]hYq* l‘] Nh][aYd OYp]k _]f]jYl]\ Zq l‘] <kk]kkgj{k KYj[]dk g^ OYpYZd] Kjgh]jlq l‘Yl ‘Yn] fgl Z] hj]hYa\ oadd Z] Y\]imYl] lg hYq l‘] hjaf[ahYd g^ Yf\ afl]j]kl gf Ydd =gf\k o‘]f \m]* Ydd Yk \]l]jeaf]\ Zq l‘] >alq HYfY_]j gj ‘ak \]ka_f]], Kj]hYqe]flk g^ l‘] Nh][aYd OYp eYq Z] [gdd][l]\ Yk \]k[jaZ]\ af N][lagf A YZgn], <dd [YhalYdar]\ l]jek mk]\ ‘]j]af Yf\ fgl \]^af]\ ‘]j]af k‘Ydd ‘Yn] l‘] e]Yfaf_ k]l ^gjl‘ af l‘] Aak[Yd <_]fl <_j]]e]fl, Ral‘ j]kh][l lg Yfq <kk]kkgj{k KYj[]d l‘Yl ak hj]hYa\* l‘] >alq k‘Ydd [Ymk] Y kmalYZd] fgla[] lg Z] j][gj\]\ af [gehdaYf[] oal‘ l‘] <[l ^gddgoaf_ j][]ahl g^ km[‘ hj]hYqe]fl g^ Nh][aYd OYp]k* lg af\a[Yl] l‘] hj]hYqe]fl g^ Nh][aYd OYp]k Yf\ l‘] j]d]Yk] g^ l‘] Nh][aYd OYp da]f* Yf\ l‘] gZda_Ylagf g^ km[‘ <kk]kkgj{k KYj[]d lg hYq l‘] Nh][aYd OYp k‘Ydd []Yk], H. PARTIAL PREPAYMENT OF SPECIAL TAX O‘] Nh][aYd OYp gf Yf <kk]kkgj{k KYj[]d g^ ?]n]dghe]fl Kjgh]jlq gj Pf\]n]dgh]\ Kjgh]jlq eYq Z] hYjlaYddq hj]hYa\ Yf\ l‘Yl hgjlagf g^ l‘] Nh][aYd OYp gZda_Ylagf h]jeYf]fldq kYlak^a]\, O‘] <egmfl g^ l‘] hj]hYqe]fl k‘Ydd Z] [Yd[mdYl]\ Yk af N][lagf B9 ]p[]hl l‘Yl Y hYjlaYd hj]hYqe]fl k‘Ydd Z] [Yd[mdYl]\ Y[[gj\af_ lg l‘] ^gddgoaf_ ^gjemdY8 PP = PE p F <+/1 O‘]k] l]jek ‘Yn] l‘] ^gddgoaf_ e]Yfaf_8 KK; l‘] hYjlaYd hj]hYqe]fl K}; l‘] hj]hYqe]fl <egmfl [Yd[mdYl]\ Y[[gj\af_ lg N][lagf B A;l‘] h]j[]fl Zq o‘a[‘ l‘] gof]j g^ l‘] <kk]kkgj{k KYj[]d’k( ak hYjlaYddq hj]hYqaf_ l‘] Nh][aYd OYp <k klYl]\ af N][lagf B* o‘]f Y hYjlaYd hj]hYqe]fl ak eY\] gf Yf <kk]kkgj{k KYj[]d g^ Pf\]n]dgh]\ Kjgh]jlq ^gj o‘a[‘ fg Zmad\af_ h]jeal ‘Yk Z]]f akkm]\* l‘] Yhhda[YZd] imgla]fl mladar]\ af hYjY_jYh‘k 3’Z( Yf\ 5’Z( k‘Ydd Z] l‘Yl [gehml]\ af hYjY_jYh‘ 2’Z(’aa(, O‘] gof]j g^ Yfq <kk]kkgj{k KYj[]d o‘g \]kaj]k km[‘ hj]hYqe]fl k‘Ydd fgla^q >A? Ig, / af ojalaf_ g^ ’a( km[‘ gof]j{k afl]fl lg hYjlaYddq hj]hYq l‘] Nh][aYd OYp Yf\* ’aa( l‘] h]j[]flY_] g^ l‘] Nh][aYd OYp lg Z] hj]hYa\, O‘] >alq HYfY_]j k‘Ydd hjgna\] l‘] gof]j oal‘ Y klYl]e]fl g^ l‘] Yegmfl j]imaj]\ ^gj l‘] hYjlaYd hj]hYqe]fl g^ l‘] Nh][aYd OYp ^gj Yf <kk]kkgj{k KYj[]d oal‘af 1. \Yqk g^ l‘] j]im]kl Yf\ eYq [‘Yj_] Y j]YkgfYZd] ^]] ^gj hjgna\af_ l‘ak k]jna[], Ral‘ j]kh][l lg Yfq <kk]kkgj{k KYj[]d l‘Yl ak hYjlaYddq hj]hYa\* l‘] >alq k‘Ydd ’a( \akljaZml] l‘] ^mf\k j]eall]\ lgal Y[[gj\af_lg l‘] Aak[Yd <_]fl <_j]]e]fl9’aa( [Ymk]Y kmalYZd] fgla[]lg Z] j][gj\]\ ^gddgoaf_j][]ahl g^ km[‘ hj]hYqe]fl g^ Nh][aYd OYp]k* lg af\a[Yl] l‘] hYjlaYd hj]hYqe]fl g^ Nh][aYd OYp]k* ’aaa( af\a[Yl] af l‘] j][gj\k g^ >A? Ig, / l‘Yl l‘]j] ‘Yk Z]]f Y hYjlaYd hj]hYqe]fl g^ l‘] Nh][aYd OYp Yf\ l‘Yl Y hgjlagf g^ l‘] Nh][aYd OYp Yhhda[YZd] lg km[‘ <kk]kkgj{k KYj[]d* ]imYd lg l‘] gmlklYf\af_ h]j[]flY_] ’/,.. w A( g^ l‘] j]eYafaf_ HYpaeme Nh][aYd OYp* k‘Ydd [gflafm] lg Z] d]na]\ gf km[‘ <kk]kkgj{k KYj[]d, R‘]f Y hYjlaYd hj]hYqe]fl ak eY\] ^gj Yf <kk]kkgj{k KYj[]d g^ Pf\]n]dgh]\ Kjgh]jlq* l‘] h]j[]flY_] j]\m[lagf af l‘] HYpaeme Nh][aYd OYp k‘Ydd [gflafm] lg Yhhdq lg km[‘ <kk]kkgj{k KYj[]d Y^l]j al Z][ge]k ?]n]dgh]\ Kjgh]jlq* gj lg Yfq km[[]]\af_ <kk]kkgj{k KYj[]dk k‘gmd\ km[‘ <kk]kkgj{k KYj[]d kmZ\ana\], I.TERM OF SPECIAL TAX O‘] Nh][aYd OYp k‘Ydd Z] d]na]\ ^gj Y l]je g^ mh lg 3. q]Yjk* [gee]f[af_ oal‘ Aak[Yd T]Yj /774+75, J.APPEALS <fq hjgh]jlq gof]j [dYaeaf_ l‘Yl l‘] Yegmfl gj Yhhda[Ylagf g^ l‘] Nh][aYd OYp ak fgl [gjj][l Yf\ j]im]klaf_ Y j]^mf\ eYq ^ad] Y ojall]f fgla[] g^ Yhh]Yd oal‘ l‘] >alq HYfY_]j fgl dYl]j l‘Yf gf] [Yd]f\Yj q]Yj Y^l]j ‘Ynaf_hYa\l‘]Nh][aYd OYpl‘Ylak\akhml]\, O‘]>alqHYfY_]jk‘Ydd hjgehldqj]na]o l‘] Yhh]Yd*Yf\a^f][]kkYjq* e]]l oal‘ l‘] hjgh]jlq gof]j* [gfka\]j ojall]f Yf\ gjYd ]na\]f[] j]_Yj\af_ l‘] Yegmfl g^ l‘] Nh][aYd OYp* Yf\ \][a\] l‘] Yhh]Yd, D^ l‘] >alq HYfY_]j{k \][akagf j]imaj]k l‘] Nh][aYd OYp Z] eg\a^a]\ gj [‘Yf_]\ af ^Yngj g^ l‘] hjgh]jlq gof]j* Y [Yk‘ j]^mf\ k‘Ydd fgl Z] eY\] ’]p[]hl ^gj l‘] dYkl q]Yj g^ d]nq(* Zml Yf Y\bmkle]fl k‘Ydd Z] eY\] lg l‘] f]pl Nh][aYd OYp d]nq, <fq \akhml] gn]j l‘] \][akagf g^ l‘] >alq HYfY_]j k‘Ydd Z] j]^]jj]\ lg l‘] >gmf[ad Yf\ l‘] \][akagf g^l‘] >gmf[ad k‘Ydd Z]^afYd, O‘akhjg[]\mj] k‘Ydd Z] ]p[dmkan] Yf\ alk ]p‘Ymklagf ZqYfqhjgh]jlq gof]j k‘Ydd Z] Y [gf\alagf hj][]\]fl lg Yfq d]_Yd Y[lagf Zq km[‘ gof]j, VOCDN K<B@ DIO@IODJI<GGT G@AO =G<IFW =+/ = APPENDIX B FORM OF CONTINUING DISCLOSURE AGREEMENT OCDN >JIODIPDIB ?DN>GJNPM@ <BM@@H@IO ’l‘] y?ak[dgkmj] <_j]]e]flz( ak ]p][ml]\ Yf\ \]dan]j]\ Zq l‘] >alq g^ @f[afalYk ’l‘] yDkkm]jz( gf Z]‘Yd^ g^ Yf\ ^gj >alq g^ @f[afalYk >geemfalq AY[adala]k ?aklja[l Ig,/’@f[afalYk MYf[‘ 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Y\\alagf lg l‘Yl o‘a[‘ ak j]imaj]\ Zq l‘ak ?ak[dgkmj] <_j]]e]fl, D^ l‘] Dkkm]j [‘ggk]k lg af[dm\] Yfq af^gjeYlagf af Yfq <ffmYd M]hgjl gj fgla[] g^ g[[mjj]f[] g^ Y Gakl]\ @n]fl af Y\\alagf lg l‘Yl o‘a[‘ ak kh][a^a[Yddq j]imaj]\ Zq l‘ak ?ak[dgkmj] <_j]]e]fl* l‘] Dkkm]j k‘Ydd ‘Yn] fg gZda_Ylagf mf\]j l‘ak ?ak[dgkmj] <_j]]e]fl lg mh\Yl] km[‘ af^gjeYlagf gj af[dm\] al af Yfq ^mlmj] <ffmYd M]hgjl gj fgla[] g^ g[[mjj]f[] g^ Y Gakl]\ @n]fl, O‘] Dkkm]j Y[cfgod]\_]k Yf\ mf\]jklYf\k l‘Yl gl‘]j klYl] Yf\ ^]\]jYd dYok* af[dm\af_ Zml fgl daeal]\ lg l‘] N][mjala]k <[l g^ /711 Yf\ Mmd] /.Z+3 hjgemd_Yl]\ mf\]j l‘] N][mjala]k @p[‘Yf_] <[l g^ /712* eYq Yhhdq lg l‘] Dkkm]j* Yf\ l‘Yl mf\]j kge] [aj[meklYf[]k [gehdaYf[] oal‘ l‘ak ?ak[dgkmj] <_j]]e]fl* oal‘gml Y\\alagfYd \ak[dgkmj]k gj gl‘]j Y[lagf* eYq fgl ^mddq \ak[‘Yj_] Ydd \mla]k Yf\ gZda_Ylagfk g^ l‘] Dkkm]j mf\]j km[‘ dYok, N@>ODJI //, ?]^Ymdl, Df l‘] ]n]fl g^ Y ^Yadmj] g^ l‘] Dkkm]j gj l‘] ?akk]eafYlagf <_]fl lg [gehdq oal‘ Yfq hjgnakagf g^ l‘ak ?ak[dgkmj] <_j]]e]fl* Yfq Jof]j g^ l‘] =gf\k eYq lYc] km[‘ Y[lagfk Yk eYq Z] f][]kkYjq Yf\ YhhjghjaYl]* af[dm\af_ k]]caf_ eYf\Yl] gj kh][a^a[ h]j^gjeYf[] Zq [gmjl gj\]j* lg [Ymk] l‘] Dkkm]j lg [gehdq oal‘ alk gZda_Ylagfk mf\]j l‘ak ?ak[dgkmj] <_j]]e]fl, < \]^Ymdl mf\]j l‘ak ?ak[dgkmj] <_j]]e]fl k‘Ydd fgl Z] \]]e]\ Yf @n]fl g^ ?]^Ymdl mf\]j l‘] Aak[Yd <_]fl <_j]]e]fl* Yf\ l‘] kgd] j]e]\q mf\]j l‘ak ?ak[dgkmj] <_j]]e]fl af l‘] ]n]fl g^ Yfq ^Yadmj] g^ l‘] Dkkm]j lg [gehdq oal‘ l‘ak ?ak[dgkmj] <_j]]e]fl k‘Ydd Z] Yf Y[lagf lg [geh]d h]j^gjeYf[], N@>ODJI /0, ?mla]k9 Deemfalq Yf\ GaYZadalq g^ ?akk]eafYlagf <_]fl, O‘] ?akk]eafYlagf <_]fl k‘Ydd ‘Yn] gfdq km[‘ \mla]k Yk Yj] kh][a^a[Yddq k]l ^gjl‘ af l‘ak ?ak[dgkmj] <_j]]e]fl* Yf\ fg gl‘]j \mla]k k‘Ydd Z] aehda]\ ‘]j]mf\]j* Yf\ l‘] Dkkm]j Y_j]]k lg af\]efa^q Yf\ kYn] l‘] ?akk]eafYlagf <_]fl* alk g^^a[]jk* \aj][lgjk* ]ehdgq]]k Yf\ Y_]flk* ‘Yjed]kk Y_Yafkl Yfq dgkk* ]ph]fk] Yf\ daYZadala]k ’o‘]l‘]j gj fgl dala_Yl]\( o‘a[‘ ]al‘]j eYq af[mj Yjakaf_ gml g^ gj af l‘] ]p]j[ak] gj h]j^gjeYf[] g^ l‘] hgo]jk Yf\ \mla]k hjgna\]\ ‘]j]mf\]j* af[dm\af_ =+4 l‘] [gklk Yf\ ]ph]fk]k ’af[dm\af_ Yllgjf]qk ^]]k( g^ \]^]f\af_ Y_Yafkl Yfq [dYae g^ daYZadalq* Zml ]p[dm\af_ daYZadala]k \m] lg l‘] ?akk]eafYlagf <_]fl{k gj hj]hYjYlagf* j]na]o* ^gje gj [gfl]fl g^ Yfq <ffmYd M]hgjl gj Yfq fgla[] g^ Y Gakl]\ @n]fl, O‘] ?akk]eafYlagf <_]fl k‘Ydd fgl Z] \]]e]\ lg Z] l‘] Y_]fl g^ gj ^a\m[aYjq lg l‘] Dkkm]j, O‘] ?akk]eafYlagf <_]fl k‘Ydd Z] hYa\ [geh]fkYlagf Zq l‘] Dkkm]j ^gj alk k]jna[]k hjgna\]\ ‘]j]mf\]j af Y[[gj\Yf[] oal‘ alk k[‘]\md] g^ ^]]k Yk Ye]f\]\ ^jge lae] lg lae] Yf\ Ydd ]ph]fk]k* d]_Yd ^]]k Yf\ Y\nYf[]k eY\] gj af[mjj]\ Zq l‘] ?akk]eafYlagf <_]fl af l‘] h]j^gjeYf[] g^ alk \mla]k ‘]j]mf\]j, O‘] ?akk]eafYlagf <_]fl k‘Ydd ‘Yn] fg \mlq gj gZda_Ylagf lg j]na]o Yfq af^gjeYlagf hjgna\]\ lg l‘]e ‘]j]mf\]j Yf\ k‘Ydd fgl Z] \]]e]\ lg Z] Y[laf_ af Yfq ^a\m[aYjq [YhY[alq ^gj l‘] Dkkm]j* l‘] Jof]jk g^ l‘] =gf\k* gj Yfq gl‘]j hYjlq, O‘] gZda_Ylagfk g^ l‘] Dkkm]j mf\]j l‘ak N][lagf k‘Ydd kmjnan] j]ka_fYlagf gj j]egnYd g^ l‘] ?akk]eafYlagf <_]fl Yf\ hYqe]fl g^ l‘] =gf\k, Ig h]jkgf k‘Ydd ‘Yn] Yfq ja_‘l lg [gee]f[] Yfq Y[lagf Y_Yafkl l‘] Aak[Yd <_]fl gj l‘] ?akk]eafYlagf <_]fl ‘]j]mf\]j* k]]caf_ Yfq j]e]\q gl‘]j l‘Yf lg [geh]d kh][a^a[ h]j^gjeYf[] g^ l‘ak ?ak[dgkmj] <_j]]e]fl, O‘] ?akk]eafYlagf <_]fl k‘Ydd fgl Z] daYZd] mf\]j Yfq [aj[meklYf[]k ^gj egf]lYjq \YeY_]k lg Yfq h]jkgf ^gj Yfq Zj]Y[‘ mf\]j l‘ak ?ak[dgkmj] <_j]]e]fl, N@>ODJI /1, =]f]^a[aYja]k, O‘ak ?ak[dgkmj] <_j]]e]fl k‘Ydd afmj] kgd]dq lg l‘] Z]f]^al g^ l‘] Dkkm]j* l‘] ?akk]eafYlagf <_]fl* l‘] KYjla[ahYlaf_ Pf\]jojal]jk Yf\ Jof]jk ^jge lae] lg lae] g^ l‘] =gf\k* Yf\ k‘Ydd [j]Yl] fg ja_‘lk af Yfq gl‘]j h]jkgf gj ]flalq, N@>ODJI /2, Igla[]k, Igla[]k k‘gmd\ Z] k]fl af ojalaf_ lg l‘] ^gddgoaf_ Y\\j]kk]k, O‘] ^gddgoaf_ af^gjeYlagf eYq Z] [gf[dmkan]dq j]da]\ mhgf mflad [‘Yf_]\ af ojalaf_, ?ak[dgkmj] M]hj]k]flYlan]8 >alq HYfY_]j >alq g^ @f[afalYk 3.3 Ngml‘ Qmd[Yf <n]fm] @f[afalYk* >< 70.02+1411 ?akk]eafYlagf <_]fl8 <hhda]\ =]kl KjY[la[]k /77.. HY[<jl‘mj =dn\,* Nmal] //.. Djnaf]* >< 704/0+0211 Aak[Yd <_]fl8 P,N, =Yfc IYlagfYd <kkg[aYlagf 411 R 3l‘ Nl, 02l‘ Adggj Ggk <f_]d]k* >< 7..5/ N@>ODJI /3, >gmfl]jhYjlk, O‘ak ?ak[dgkmj] <_j]]e]fl eYq Z] ]p][ml]\ af k]n]jYd [gmfl]jhYjlk* ]Y[‘ g^ o‘a[‘ k‘Ydd Z] Yf gja_afYd Yf\ Ydd g^ o‘a[‘ k‘Ydd [gfklalml] Zml gf] Yf\ l‘] kYe] afkljme]fl, ?Yl]\8 >DOT JA @I>DIDO<N JI =@C<GA JA <I? AJM >JHHPIDOT A<>DGDOD@N ?DNOMD>O IJ, / =q8 >alq HYfY_]j =+5 ?Yl]\8 <KKGD@? =@NO KM<>OD>@N* Yk ?akk]eafYlagf <_]fl =q8 <ml‘gjar]\ Na_fYlmj] =+6 EXHIBIT A NOTICE TO REPOSITORIES OF FAILURE TO FILE ANNUAL REPORT IYe] g^ Dkkm]j8 >alq g^ @f[afalYk >geemfalq AY[adala]k ?aklja[l Ig, / IYe] g^ =gf\ Dkkm]k8 >alq g^ @f[afalYk >geemfalq AY[adala]k ?aklja[l Ig, / 0.0/ Nh][aYd OYp M]^mf\af_ =gf\k9 Yf\ ?Yl]k g^ DkkmYf[]8 <m_mkl 2* 0.0/ IJOD>@ DN C@M@=T BDQ@I l‘Yl >alq g^ @f[afalYk >geemfalq AY[adala]k ?aklja[l Ig, / ’l‘] y?aklja[lz( ‘Yk fgl hjgna\]\ Yf <ffmYd M]hgjl oal‘ j]kh][l lg l‘] YZgn] fYe]\ =gf\k Yk j]imaj]\ Zq N][lagf 1 g^ l‘] >gflafmaf_ ?ak[dgkmj] <_j]]e]fl* \Yl]\ Yk g^ <m_mkl 2* 0.0/* Zq Yf\ Z]lo]]f l‘] ?aklja[l Yf\ <hhda]\ =]kl KjY[la[]k* Yk \akk]eafYlagf Y_]fl, VO‘] ?aklja[l Yfla[ahYl]k l‘Yl l‘] <ffmYd M]hgjl oadd Z] ^ad]\ Zq XXXXXX, ?Yl]\8 XXXXXXXXXXXXXXXX ?Yl]\8 XXXXXXXX* 0.0/<KKGD@? =@NO KM<>OD>@N* Yk ?akk]eafYlagf <_]fl =q8 <ml‘gjar]\ Na_fYlmj] [[8 >alq g^ @f[afalYk >geemfalq AY[adala]k ?aklja[l Ig, / >+/ > APPENDIX C CITY OF ENCINITAS DEMOGRAPHIC INFORMATION The following information regarding the Encinitas and the surrounding area is presented as general background data. The Bonds are payable solely from the sources described herein (see “SECURITY FOR THE BONDS”). The taxing power of the City of Encinitas, the State of California or any political subdivision thereof is not pledged to the payment of the Bonds. See the information under the caption “THE BONDS.” General O‘]>alqoYk af[gjhgjYl]\afJ[lgZ]j/764,O‘]>alq{kaf[gjhgjYlagfafngdn]\Yj]gj_YfarYlagf[gfkaklaf_ hjaeYjadq g^ l‘] af[gjhgjYlagf g^ l‘] >alq g^ @f[afalYk9 l‘] \]lY[‘e]fl g^ l]jjalgjq ^jge l‘] >Yj\a^^ NYfalYlagf ?aklja[l Yf\ Yff]pYlagf g^ l‘] kYe] l]jjalgjq lg l‘] NgdYfY =]Y[‘ NYfalYlagf ?aklja[l9 Yf\ l‘] ]klYZdak‘e]fl g^ l‘] @f[afalYk Aaj] Kjgl][lagf ?aklja[l* l‘] NYf ?a]_malg RYl]j ?aklja[l ’l‘] yRYl]j ?aklja[lz( Yf\ l‘] @f[afalYk NYfalYlagf ?aklja[l Yk kmZka\aYjq \aklja[lk g^ l‘] >alq, >mjj]fldq* Ydd g^ l‘] kmZka\aYjq \aklja[lk* ]p[dm\af_ l‘] RYl]j ?aklja[l* ‘Yn] Z]]f YZkgjZ]\ Zq l‘] >alq Yk k]hYjYl] Y[[gmflaf_ \anakagfk, O‘] >alq ak dg[Yl]\ af l‘] fgjl‘]jf [gYklYd Yj]Y g^ NYf ?a]_g >gmflq ’l‘] y>gmflqz( gn]jdggcaf_ l‘] KY[a^a[ J[]Yf, O‘] >alq ]f[gehYkk]k YhhjgpaeYl]dq 0/,2 kimYj] ead]k Yf\ ak dg[Yl]\ YhhjgpaeYl]dq 03 ead]k fgjl‘g^l‘] >alqg^ NYf ?a]_g Yf\ aee]\aYl]dqfgjl‘ g^ l‘] >alqg^ NgdYfY =]Y[‘, Oghg_jYh‘qg^ l‘]kmjjgmf\af_ Yj]Y nYja]k ^jge ZjgY\ [gYklYd hdYafk lg ^]jlad] afdYf\ nYdd]qk ZY[c]\ mh Zq egmflYaf jYf_]k lg l‘] ]Ykl, O‘] [daeYl] ak ]imYZd] af l‘] [gYklYd Yf\ nYdd]q j]_agfk, O‘] >alq eYaflYafk Y o]Zkal] Yl ooo,]f[afalYk[Y,_gn, Cgo]n]j* l‘] af^gjeYlagf hj]k]fl]\ l‘]j] ak fgl hYjl g^ l‘ak J^^a[aYd NlYl]e]fl* ak fgl af[gjhgjYl]\ Zq j]^]j]f[] ‘]j]af Yf\ k‘gmd\ fgl Z] j]da]\ mhgf af eYcaf_ Yf afn]kle]fl \][akagf oal‘ j]kh][l lg l‘] =gf\k, City Government O‘] >alq ak Y _]f]jYd dYo [alq Yf\ gh]jYl]k mf\]j Y [gmf[ad+eYfY_]j ^gje g^ _gn]jfe]fl, O‘] >gmf[ad-HYfY_]j ^gje g^ _gn]jfe]fl ak ZjgY\dq \]^af]\ Yk [geZafaf_ l‘] hgdala[Yd-hgda[q d]Y\]jk‘ah g^ ]d][l]\ g^^a[aYdk oal‘ l‘] eYfY_]jaYd d]Y\]jk‘ah g^ l‘] >alq HYfY_]j, O‘]j] Yj] ^an] ’3( ]d][l]\ hgkalagfk af l‘] >alq g^ @f[afalYk8 gf] ’/( HYqgj ]d][l]\ Yl+dYj_] ^gj Y log+q]Yj l]je Yf\ ^gmj ’2( >alq >gmf[ad H]eZ]jk ]Y[‘ ]d][l]\ ^gj Y ^gmj+q]Yj l]je, =]_affaf_ oal‘ l‘] B]f]jYd Hmfa[ahYd @d][lagf af Ign]eZ]j 0./6* >gmf[ad H]eZ]jk Yj] ]d][l]\ Zq \aklja[lk af ^gmj kaf_d]+e]eZ]j \aklja[lk, O‘] HYqgj Yf\ >alq >gmf[ad k]jn] Yk =gYj\ H]eZ]jk g^ l‘] NYf ?a]_malg RYl]j ?aklja[l* @f[afalYk Cgmkaf_ <ml‘gjalq* Yf\ l‘] @f[afalYk AafYf[af_ <ml‘gjalq, Df Y\\alagf* >gmf[ad H]eZ]jk j]hj]k]fl l‘] >alq gf nYjagmk j]_agfYd ZgYj\k* [geeakkagfk* Yf\ [geeall]]k, O‘] >alq HYfY_]j ak Yhhgafl]\ Zq l‘] >alq >gmf[ad Yf\ k]jn]k Yk l‘] >alq >gmf[ad{k Y\eafakljYlan] ‘]Y\ g^ l‘] >alq, O‘] >alq <llgjf]q ak Ydkg Yhhgafl]\ Zq l‘] >alq >gmf[ad, <dd gl‘]j [alq ]ehdgq]]k Yj] Yhhgafl]\ Zq Yf\ Yj] j]khgfkaZd] lg l‘] >alq HYfY_]j, O‘] >alq kmhhda]k hgjlagfk g^ alk j]ka\]flk oal‘ oYl]j Yf\ k]o]j k]jna[] l‘jgm_‘ alk kmZka\aYjq \aklja[lk, O‘] fgjl‘]jf hgjlagf g^ l‘] >alq ak hjgna\]\ oal‘ k]o]j k]jna[] Zq l‘] af\]h]f\]fl G]m[Y\aY >gmflq RYkl]oYl]j ?aklja[l, O‘] ]Ykl]jf ‘Yd^ g^l‘] >alqj][]an]k hglYZd] oYl]j ^jgel‘] Jdan]f‘Yaf Hmfa[ahYd RYl]j ?aklja[l, Kgo]j ak kmhhda]\ Zq NYf ?a]_g BYk Yf\ @d][lja[, O‘] >alq ‘Yk alk gof hYjck Yf\ [geemfalq k]jna[]k \]hYjle]flk* Zml [gfljY[lk ^gj hgda[] k]jna[] ^jge l‘] >gmflq, O‘] [mjj]fl [gfljY[l oal‘ l‘] >gmflq ^gj dYo ]f^gj[]e]fl k]jna[]k ]pl]f\k l‘jgm_‘ Emf] 1.* 0.00, Population <l af[gjhgjYlagf af /764* l‘]j] o]j] YZgml 26*336 h]ghd] af l‘] >alq daealk, <k g^ EYfmYjq /* 0.0/* l‘] >Yda^gjfaY ?]hYjle]fl g^ AafYf[] ]klaeYl]k l‘Yl @f[afalYk ‘Yk _jgof lg Y hghmdYlagf g^ 40*067* Yf\ Zq 0.13* >+0 N<I?alq{k B]f]jYd KdYf, @f[afalYkak Y dgo \]fkalq [geemfalq [gfkaklaf_ hj]\geafYl]dq g^ kaf_d] ^Yeadq ‘ge]k, TABLE C-1 CITY OF ENCINITAS ANNUAL POPULATION ESTIMATES (As of January 1) Year City of Encinitas San Diego County State of California 0./5 40*125 1*1.1*144 17*130*176 0./6 40*172 1*10/*//6 17*3/7*313 0./7 40*074 1*111*1/7 17*4.3*14/ 0.0.40*021 1*11/*057 17*426*716 0.0/40*067 1*1/3*2.2 17*244*633 XXXXXXXXXXXXXXXXXXXXXXX Ngmj[]8 >Yda^gjfaY NlYl] ?]hYjle]fl g^ AafYf[], Assessed Valuation <k \ak[mkk]\ mf\]j yKjgh]jlq OYp]kz YZgn]* l‘] >alq j][]an]k Y k‘Yj] g^ Y\ nYdgj]e lYp]k d]na]\ gf j]Yd hjgh]jlq oal‘af alk Zgmf\Yja]k, O‘] ZYka[ d]nq ak ]imYd lg /$ g^ l‘] Ykk]kk]\ nYdm] g^ k][mj]\ Yf\ mfk][mj]\ hjgh]jlq, O‘] >alq j][]an]k YhhjgpaeYl]dq 02$ g^ l‘] ZYka[ d]nq, O‘] ^gddgoaf_ lYZd] k‘gok l‘] Ykk]kk]\ nYdmYlagf g^ l‘] >alq ^gj l‘] dYkl ^an] ^ak[Yd q]Yjk, TABLE C-2 CITY OF ENCINITAS SCHEDULE OF ASSESSED PROPERTY (As of June 30) Year Secured Utility Unsecured Total 0./5+/6 #/3*0/5*76.*365 #.#/3.*46.*701 #/3*146*44/*3/. 0./6+/7 /4*0/4*/30*177 ./36*323*003 /4*152*475*402 0./7+0. /4*775*002*057 ./42*174*7.1 /5*/4/*40/*/60 0.0.+0/ /5*7.6*/47*/7../54*067*645 /6*.62*237*.35 XXXXXXXXXXXXXXXXXXXXXXX Ngmj[]8 >Yda^gjfaY Hmfa[ahYd NlYlakla[k* Df[, Yf\ NYf ?a]_g >gmflq <m\algj+>gfljgdd]j, N]l ^gjl‘ af OYZd] >+1 Yj] hjgh]jlq lYp [gdd][lagfk Yf\ \]dafim]f[a]k af l‘] >alq Yk g^ Emf] 1. ^gj Aak[Yd T]Yjk 0.// l‘jgm_‘ 0.0., O‘] >gmflq g^ NYf ?a]_g ’l‘] y>gmflqz( gh]jYl]k mf\]j Y klYlmlgjq hjg_jYe ]flald]\ l‘] <dl]jfYl] H]l‘g\ g^ ?akljaZmlagf g^ OYp G]na]k Yf\ >gdd][lagfk Yf\ g^ OYp NYd] Kjg[]]\k ’l‘] yO]]l]j KdYfz(, Pf\]j l‘] O]]l]j KdYf dg[Yd lYpaf_ ]flala]k j][]an] /..$ g^ l‘]aj lYp d]na]k f]l g^ \]dafim]f[a]k* Zml \g fgl j][]an] afl]j]kl gj h]fYdla]k gf \]dafim]fl lYp]k [gdd][l]\ Zq l‘] >gmflq, O‘] >alq ]d][l]\ fgl lg ]fjgdd af l‘] O]]l]j KdYf9 Y[[gj\af_dq* l‘] >alq{k j][]ahl g^ alk hjgh]jlq lYp j]n]fm]k ak aehY[l]\ Zq \]dafim]f[a]k af hYqe]fl* Yk o]dd Yk Zq l‘] [gdd][lagf g^ afl]j]kl Yf\ h]fYdla]k gf hYkl \]dafim]f[a]k, >+1 TABLE A-12 CITY OF ENCINITAS PROPERTY TAX LEVIES AND COLLECTIONS (As of June 30, 2020) Collected within the Fiscal Year of Levy Collections Total Collections to Date Fiscal Year Ended June 30 Taxes Levied for the Fiscal Year Amount(1) Percent of Levy In Subsequent Years Amount Percentage of Levy 0.//#05*32/*265 #04*666*70/75,41$#326*414 #05*215*335 77,40$ 0./0 06*/..*4// 05*32.*636 76,./016*2/6 05*557*054 77,64 0./1 07*0.5*015 06*5/0*.14 76,1./35*065 06*647*101 76,62 0./2 1.*33.*1./ 1.*..7*352 76,01 /11*0.6 1.*/20*560 76,45 0./3 10*03/*6/2 1/*533*772 76,24 /46*.55 1/*702*.5/76,76 0./4 12*221*750 11*74/*/52 76,4.013*51.12*/74*7.2 77,06 0./5 26*32.*214 25*65/*74/76,40 11.*5.2 26*0.0*443 77,1. 0./6 3.*6.2*223 3.*/50*57/76,54 /5/*605 3.*122*4/6 77,.7 0./7 31*205*.53 30*430*026 76,33 32.*4/0 31*/70*64.77,34 0.0.33*/7.*.36 32*/21*/00 76,/.+32*/21*/00 76,/. XXXXXXXXXXXXXXXXXXX ’/(>alq g^ @f[afalYk B]f]jYd Amf\, Ngmj[]8 >gmflq g^ NYf ?a]_g <m\algj Yf\ >gfljgdd]j8 Kjgh]jlq OYp <hhgjlagfe]fl Largest Taxpayers < dakl g^ l‘] hjaf[ahYd hjgh]jlq lYphYq]jk af l‘] >alq ak k]l ^gjl‘ Z]dgo8 TABLE C-4 CITY OF ENCINITAS PRINCIPAL SECURED PROPERTY TAXPAYERS(1) (Fiscal Year 2019-20) Property Owner Primary Land Use 2019-20 Assessed Valuation Percent of Total(1) /, OM> @f[afalYk QaddY_] GG>N‘ghhaf_ >]fl]j # 65*745*077 .,30$ 0, >gddogg\ Kaf]k <hYjle]flk GK <hYjle]flk 6/*6//*.05 .,26 1, =]degfl QaddY_] O]fYfl 0 GG> 1313 >gfnYd]k[]fl Cge]4.*43/*/5..,14 2, KY[a^a[g @f[afalYk <hYjle]fl Cge]k GK <hYjle]flk 31*715*4...,10 3, @f[afalYk Ogof >]fl]j <kkg[aYl]k D GG>N‘ghhaf_ >]fl]j 15*453*115 .,00 4, I>C> 1 GG>Kjg^]kkagfYd =mad\af_15*215*714 .,00 5, R]af_Yjl]f IgklYl Df[,N‘ghhaf_ >]fl]j 14*504*074 .,00 6, @f[afalYk HYjc]lhdY[] GG>N‘ghhaf_ >]fl]j 10*2.0*3...,/7 7, Cge] ?]hgl >gee]j[aYd 1/*63.*5/..,/7 /., NNG GYf\dgj\ GG>>gfnYd]k[]fl Cge]04*2/3*4...,/4 //, Hakkagf Ma\_] GG><hYjle]flk 03*554*/2/.,/3 /0, N‘]Y Cge]k GK M]ka\]flaYd ?]n]dghe]fl 13*127*/12 .,/3 /1, Qgfk >gehYfa]k Df[,N‘ghhaf_ >]fl]j 03*.0/*53..,/3 /2, KYmd C, H]Yj\gf* Ojmkl M]ka\]flaYd-H]\a[Yd =mad\af_k 02*556*657 .,/3 /3, MKB KY[a^a[Y NlYlagf GG>>gee]j[aYd 02*26.*....,/2 /4, F]al‘ = Yf\ NYjY N, CYjjakgf Cgl]d 00*357*/16 .,/1 /5, M<A KY[a^a[Y @f[afalYk GG><mlg NYd]k 0/*23.*....,/1 /6, LmYad Kgafl] <hYjle]fl Cge]k GK <hYjle]flk 0/*20.*075 .,/1 /7, Nl]jdaf_ AYeadq Ojmkl <hYjle]flk /7*637*714 .,/0 0., Kd]f[ @d >Yeafg GG>N‘ghhaf_ >]fl]j /7*343*5.5 .,/0 #5/5*/34*235 2,00$ XXXXXXXXXXXXXXXXXXXXXXX ’/(0./7+0. Gg[Yd N][mj]\ <kk]kk]\ QYdmYlagf8 #/4*775*002*057, Ngmj[]8 >Yda^gjfaY Hmfa[ahYd NlYlakla[k* Df[, >+2 Retail and Total Taxable Sales O‘] ^gddgoaf_ lYZd] hj]k]flk l‘] j]lYad lYpYZd] ljYfkY[lagfk g^ l‘] >alq g^ @f[afalYk ^gj l‘] [Yd]f\Yj q]Yjk 0./4 l‘jgm_‘ 0.0., TABLE C-5 CITY OF ENCINITAS TAXABLE RETAIL SALES ($ in thousands) 2016 2017 2018 2019 2020 <mlgk Yf\ OjYfkhgjlYlagf # /,462*4/6 # /*405*31/ # /*522*/77 # /*6.4*531 # /*5.1*3.. =mad\af_ Yf\ >gfkljm[lagf 76.*/2. /*.0/*4..702*711 /*/11*.00 737*145 =mkaf]kk Yf\ Df\mkljq 516*27.401*42/345*443 407*//0 51.*425 Agg\ Yf\ ?jm_k /*..3*65.71/*43. /*./.*33/ /*//.*640 /*/.7*762 Am]d Yf\ N]jna[] NlYlagfk /*160*724 /*/7/*/42 /*.03*164 /*41.*/02 /*.77*165 B]f]jYd >gfkme]j Bgg\k 1*313*512 1*270*11. 1*2..*474 1*6/0*250 1*/6/*301 M]klYmjYflk Yf\ Cgl]dk 0*//1*//4 0*042*265 0*052*442 0*34.*/.6 0*/2.*352 OglYd #//*22.*7/2 #//*/30*2.1 #/.*726*.72 #/0*460*231 #/.*702*760 XXXXXXXXXXXXXXXXXXXXXXX Ngmj[]8 >alq <m\al]\ AafYf[aYd NlYl]e]flk, Building Activity O‘] ^gddgoaf_ lYZd] kmeeYjar]k l‘] fmeZ]j g^ j]ka\]flaYd Zmad\af_ h]jealk akkm]\ af l‘] >alq ^jge Aak[Yd T]Yj 0./3+/4 l‘jgm_‘ 0./7+0., TABLE C-6 CITY OF ENCINITAS NEW BUILDING PERMITS (As of June 30) Fiscal Year (June 30) Single Family Residential Permits 0./4 //5 0./5 72 0./6 /4. 0./7 /17 0.0./62 XXXXXXXXXXXXXXXXXXXXXXX Ngmj[]8 >alq g^ @f[afalYk, Income Levels O‘] >alq g^ @f[afalYk ak hjaeYjadq Y Z]\jgge [geemfalq oal‘ hjaeYjq ]ehdgqe]fl af f]YjZq [ala]k, @f[afalYk e]\aYf ‘gmk]‘gd\ af[ge] ak #//1*/53* o‘a[‘ ak /61$ ‘a_‘]j l‘Yf l‘] fYlagfYd Yn]jY_] g^ #4/*715 Yf\ /3.$ ‘a_‘]j l‘Yf l‘] NlYl] g^ >Yda^gjfaY Yn]jY_] g^ #53*055, ? APPENDIX D SUMMARY OF FISCAL AGENT AGREEMENT VOCDN K<B@ DIO@IODJI<GGT G@AO =G<IFW ?+/ APPENDIX D SUMMARY OF FISCAL AGENT AGREEMENT The following is a summary of certain provisions of the Fiscal Agent Agreement not otherwise described in the text of this Official Statement. This summary is not intended to be definitive, and reference is made to the text of the Fiscal Agent Agreement for the complete provisions thereof. 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<_j]]e]fl ogmd\ Y\n]jk]dq Y^^][l l‘] k][mjalq ^gj l‘] Dfkmj]\ =gf\k gj l‘] ja_‘lk g^ l‘] Jof]jk g^ l‘] Dfkmj]\ =gf\k* l‘] ]^^][l g^ Yfq km[‘ Ye]f\e]fl* [gfk]fl* oYan]j* Y[lagf gj afY[lagf k‘Ydd Z] [gfka\]j]\ Yk a^ l‘]j] o]j] fg =gf\ DfkmjYf[] Kgda[q, ’f( O‘] >alq k‘Ydd fgl ]fl]j aflg Yfq afl]j]kl jYl] ]p[‘Yf_] Y_j]]e]fl gj Yfq gl‘]j afl]j]kl jYl] eYafl]fYf[] Y_j]]e]fl k][mj]\ Zq Yf\ hYqYZd] ^gje l‘] Nh][aYd OYp M]n]fm]k oal‘gml l‘] hjagj ojall]f [gfk]fl g^ l‘] =gf\ Dfkmj]j, OTHER COVENANTS OF THE CITY Punctual Payment O‘] >alq oadd hmf[lmYddq hYq gj [Ymk] lg Z] hYa\ l‘] hjaf[ahYd g^* Yf\ afl]j]kl Yf\ Yfq hj]eame gf* l‘] =gf\k o‘]f Yf\ Yk \m] af klja[l [gf^gjealq oal‘ l‘] l]jek g^ l‘] Aak[Yd <_]fl <_j]]e]fl Yf\ Yfq Nmhhd]e]flYd <_j]]e]fl* Yf\ al oadd ^Yal‘^mddq gZk]jn] Yf\ h]j^gje Ydd g^ l‘] [gf\alagfk [gn]fYflk Yf\ j]imaj]e]flk g^ l‘] Aak[Yd <_]fl <_j]]e]fl Yf\ Ydd Nmhhd]e]flYd <_j]]e]flk Yf\ g^ l‘] =gf\k, Limited Obligation O‘] =gf\k Yj] daeal]\ gZda_Ylagfk g^ l‘] >alq gf Z]‘Yd^ g^ l‘] ?aklja[l Yf\ Yj] hYqYZd] kgd]dq ^jge Yf\ k][mj]\ kgd]dq Zq l‘] Nh][aYd OYp M]n]fm]k Yf\ l‘] Yegmflk af l‘] =gf\ Amf\* l‘] M]k]jn] Amf\ Yf\ l‘] Nh][aYd OYp Amf\ [j]Yl]\ mf\]j l‘] Aak[Yd <_]fl <_j]]e]fl, ?+/4 Extension of Time for Payment Df gj\]j lg hj]n]fl YfqY[[memdYlagf g^ [dYaek ^gj afl]j]kl Y^l]j eYlmjalq* l‘] >alqk‘Ydd fgl* \aj][ldq gj af\aj][ldq* ]pl]f\ gj [gfk]fl lg l‘] ]pl]fkagf g^ l‘] lae] ^gj l‘] hYqe]fl g^ Yfq [dYae ^gj afl]j]kl gf Yfq g^ l‘] =gf\k Yf\ k‘Ydd fgl* \aj][ldq gj af\aj][ldq* Z] Y hYjlq lg l‘] YhhjgnYd g^ Yfq km[‘ YjjYf_]e]fl Zq hmj[‘Ykaf_ gj ^mf\af_ kYa\ [dYaek ^gj afl]j]kl gj af Yfq gl‘]j eYff]j, Df [Yk] Yfq km[‘ [dYae ^gj afl]j]kl k‘Ydd Z] ]pl]f\]\ gj ^mf\]\* o‘]l‘]j gj fgl oal‘ l‘] [gfk]fl g^ l‘] >alq* km[‘ [dYae ^gj afl]j]kl kg ]pl]f\]\ gj ^mf\]\ k‘Ydd fgl Z] ]flald]\* af [Yk] g^ \]^Ymdl mf\]j l‘] Aak[Yd <_]fl <_j]]e]fl* lg l‘] Z]f]^alk g^ l‘] Aak[Yd <_]fl <_j]]e]fl* ]p[]hl kmZb][l lg l‘] hjagj hYqe]fl af ^mdd g^ l‘] hjaf[ahYd g^ Ydd g^ l‘] =gf\k l‘]f JmlklYf\af_ Yf\ g^ Ydd [dYaek ^gj afl]j]kl o‘a[‘ k‘Ydd fgl ‘Yn] kg ]pl]f\]\ gj ^mf\]\, Against Encumbrances O‘] >alq oadd fgl ]f[meZ]j* hd]\_] gj hdY[] Yfq [‘Yj_] gj da]f mhgf Yfq g^ l‘] Nh][aYd OYp M]n]fm]k gj gl‘]j Yegmflk hd]\_]\ lg l‘] =gf\k kmh]jagj lg gj gf Y hYjalq oal‘ l‘] hd]\_] Yf\ da]f [j]Yl]\ af l‘] Aak[Yd <_]fl <_j]]e]fl ^gj l‘] Z]f]^al g^ l‘] =gf\k* ]p[]hl Yk h]jeall]\ Zq l‘] Aak[Yd <_]fl <_j]]e]fl, Books and Records O‘]>alqoadd c]]h* gj [Ymk]lg Z] c]hl* hjgh]j Zggck g^j][gj\ Yf\ Y[[gmflk* k]hYjYl] ^jgeYdd gl‘]j j][gj\k Yf\ Y[[gmflk g^ l‘] >alq* af o‘a[‘ [gehd]l] Yf\ [gjj][l ]flja]k k‘Ydd Z] eY\] g^ Ydd ljYfkY[lagfk j]dYlaf_ lg l‘] ]ph]f\almj] g^ Yegmflk \akZmjk]\ ^jge l‘] <\eafakljYlan] @ph]fk] Amf\ Yf\ l‘] Nh][aYd OYp Amf\ Yf\ lg l‘] Nh][aYd OYp M]n]fm]k, Nm[‘ Zggck g^ j][gj\ Yf\ Y[[gmflk k‘Ydd Yl Ydd lae]k \mjaf_ Zmkaf]kk ‘gmjk Z] kmZb][l lg l‘] afkh][lagf g^ l‘] Aak[Yd <_]fl Yf\ l‘] Jof]jk g^ fgl d]kk l‘Yf l]f h]j[]fl ’/.$( g^ l‘] hjaf[ahYd Yegmfl g^ l‘] =gf\k l‘]f JmlklYf\af_* gj l‘]aj j]hj]k]flYlan]k \mdq Yml‘gjar]\ af ojalaf_, O‘] Aak[Yd <_]fl oadd c]]h* gj [Ymk] lg Z] c]hl* hjgh]j Zggck g^ j][gj\ Yf\ Y[[gmflk* k]hYjYl] ^jge Ydd gl‘]j j][gj\k Yf\ Y[[gmflk g^ l‘] Aak[Yd <_]fl* af o‘a[‘ [gehd]l] Yf\ [gjj][l ]flja]k k‘Ydd Z] eY\] g^ Ydd ljYfkY[lagfk j]dYlaf_ lg l‘] ]ph]f\almj] g^ Yegmflk \akZmjk]\ ^jge l‘] =gf\ Amf\* l‘] M]k]jn] Amf\ Yf\ l‘] >gklk g^ DkkmYf[] Amf\, Nm[‘ Zggck g^ j][gj\ Yf\ Y[[gmflk k‘Ydd Yl Ydd lae]k \mjaf_ Zmkaf]kk ‘gmjk Z] kmZb][l lg l‘] afkh][lagf g^ l‘] >alq Yf\ l‘] Jof]jk g^ fgl d]kk l‘Yf l]f h]j[]fl ’/.$( g^ l‘] hjaf[ahYd Yegmfl g^ l‘] =gf\k l‘]f JmlklYf\af_* gj l‘]aj j]hj]k]flYlan]k \mdq Yml‘gjar]\ af ojalaf_, Protection of Security and Rights of Owners O‘] >alq oadd hj]k]jn] Yf\ hjgl][l l‘] k][mjalq g^ l‘] =gf\k Yf\ l‘] ja_‘lk g^ l‘] Jof]jk* Yf\ oadd oYjjYfl Yf\ \]^]f\ l‘]aj ja_‘lk Y_Yafkl Ydd [dYaek Yf\ \]eYf\k g^ Ydd h]jkgfk, Ajge Yf\ Y^l]j l‘] \]dan]jq g^ Yfq g^ l‘] =gf\k Zq l‘] >alq* l‘] =gf\k k‘Ydd Z] af[gfl]klYZd] Zq l‘] >alq, Compliance with Law O‘] >alq oadd [gehdq oal‘ Ydd Yhhda[YZd] hjgnakagfk g^ l‘] <[l Yf\ dYo af [gehd]laf_ l‘] [gfkljm[lagf Yf\ Y[imakalagf g^ l‘] Kjgb][l, Collection of Special Tax Revenues O‘] >alq k‘Ydd [gehdq oal‘ Ydd j]imaj]e]flk g^ l‘] <[l kg Yk lg Ykkmj] l‘] lae]dq [gdd][lagf g^ Nh][aYd OYp M]n]fm]k* af[dm\af_ oal‘gml daealYlagf* l‘] ]f^gj[]e]fl g^ \]dafim]fl Nh][aYd OYp]k, ?+/5 Jf gj oal‘af ^an] ’3( =mkaf]kk ?Yqk g^ ]Y[‘ Emf] /* l‘] Aak[Yd <_]fl k‘Ydd hjgna\] l‘] Oj]Ykmj]j oal‘ Y fgla[] klYlaf_ l‘] Yegmfl l‘]f gf \]hgkal af l‘] =gf\ Amf\ Yf\ l‘] M]k]jn] Amf\* Yf\ af^gjeaf_ l‘] >alq l‘Yl l‘] Nh][aYd OYp]k eYq f]]\ lg Z] d]na]\ hmjkmYfl lg l‘] Jj\afYf[] Yk f][]kkYjq lg hjgna\] ^gj <ffmYd ?]Zl N]jna[] Yf\ <\eafakljYlan] @ph]fk]k Yf\ j]hd]fak‘e]fl ’a^ f][]kkYjq( g^ l‘] M]k]jn] Amf\ kg l‘Yl l‘] ZYdYf[]k l‘]j]af ]imYd l‘] M]k]jn] M]imaj]e]fl, O‘] j][]ahl g^ gj ^Yadmj] lg j][]an] km[‘ fgla[] Zq l‘] Oj]Ykmj]j k‘Ydd af fg oYq Y^^][l l‘] gZda_Ylagfk g^ l‘] Oj]Ykmj]j mf\]j l‘] 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l‘] Y\ nYdgj]e lYp]k gf j]Yd hjgh]jlq, Covenant to Foreclose KmjkmYfl lg N][lagf 31134,/ g^ l‘] <[l* l‘] >alq [gn]fYflk oal‘ Yf\ ^gj l‘] Z]f]^al g^ l‘] Jof]jk g^ l‘] =gf\k Zq l‘] Aak[Yd <_]fl <_j]]e]fl l‘Yl al oadd gj\]j* Yf\ [Ymk] lg Z] [gee]f[]\ Yk hjgna\]\ af l‘] Aak[Yd <_]fl <_j]]e]fl* Yf\ l‘]j]Y^l]j \ada_]fldq hjgk][ml] lg bm\_e]fl ’mfd]kk km[‘ \]dafim]f[q ak l‘]j]lg^gj] Zjgm_‘l [mjj]fl(* Yf Y[lagf af l‘] kmh]jagj [gmjl lg ^gj][dgk] l‘] da]f g^ Yfq Nh][aYd OYp gj afklYdde]fl l‘]j]g^ fgl hYa\ o‘]f \m] Yk hjgna\]\ af l‘] ^gddgoaf_ log hYjY_jYh‘k, O‘] Oj]Ykmj]j k‘Ydd fgla^q l‘] >alq <llgjf]q g^ Yfq km[‘ \]dafim]f[q g^ o‘a[‘ al ak YoYj]* Yf\ l‘] >alq <llgjf]q k‘Ydd [gee]f[]* gj [Ymk] lg Z] [gee]f[]\* km[‘ hjg[]]\af_k, Jf gj YZgml Emdq /kl g^ ]Y[‘ Aak[Yd T]Yj* l‘] Oj]Ykmj]j k‘Ydd [gehYj] l‘] Yegmfl g^ Nh][aYd OYp]k l‘]j]lg^gj] d]na]\ af l‘] ?aklja[l lg l‘] Yegmfl g^ Nh][aYd OYp M]n]fm]k l‘]j]lg^gj] j][]an]\ Zq l‘] >alq* Yf\8 ’<( Df\ana\mYd ?]dafim]f[a]k, D^ l‘] Oj]Ykmj]j \]l]jeaf]k l‘Yl Yfq kaf_d] hYj[]d kmZb][l lg l‘] Nh][aYd OYp af l‘] ?aklja[l ak \]dafim]fl af l‘] hYqe]fl g^ Nh][aYd OYp]k af l‘] Yegmfl g^ #/.*... gj egj]* l‘]f l‘] Oj]Ykmj]j k‘Ydd k]f\ gj [Ymk] lg Z] k]fl Y fgla[] g^ \]dafim]f[q ’Yf\ Y \]eYf\ ^gj aee]\aYl] hYqe]fl l‘]j]g^( lg l‘] hjgh]jlq gof]j oal‘af 23 \Yqk g^ km[‘ \]l]jeafYlagf* Yf\ ’a^ l‘] \]dafim]f[q j]eYafk mf[mj]\( ^gj][dgkmj] hjg[]]\af_k k‘Ydd Z] [gee]f[]\ Zq l‘] >alq oal‘af 7. \Yqk g^ km[‘ \]l]jeafYlagf, ?+/6 ’=( <__j]_Yl] ?]dafim]f[a]k, D^ l‘] Oj]Ykmj]j \]l]jeaf]k l‘Yl l‘] lglYd Yegmfl g^ \]dafim]fl Nh][aYd OYp ^gj l‘] hjagj Aak[Yd T]Yj ^gj l‘] ]flaj] ?aklja[l* ’af[dm\af_ l‘] lglYd g^ \]dafim]f[a]k mf\]j l‘] Aak[Yd <_]fl <_j]]e]fl(* ]p[]]\ 3$ g^ l‘] lglYd Nh][aYd OYp \m] Yf\ hYqYZd] ^gj l‘] hjagj Aak[Yd T]Yj* l‘]f l‘] >alq k‘Ydd fgla^q gj [Ymk] lg Z] fgla^a]\ hjgh]jlq gof]jk o‘g Yj] l‘]f \]dafim]fl af l‘] hYqe]fl g^ Nh][aYd OYp]k ’Yf\ \]eYf\ aee]\aYl] hYqe]fl g^ l‘] \]dafim]f[q( oal‘af 23 \Yqk g^ km[‘ \]l]jeafYlagf* Yf\ k‘Ydd [gee]f[] ^gj][dgkmj] hjg[]]\af_k oal‘af 7. \Yqk g^ km[‘ \]l]jeafYlagf Y_Yafkl ]Y[‘ hYj[]d g^ dYf\ af l‘] ?aklja[l oal‘ Y Nh][aYd OYp \]dafim]f[q, Further Assurances O‘] >alq oadd Y\ghl* eYc]* ]p][ml] Yf\ \]dan]j Yfq Yf\ Ydd km[‘ ^mjl‘]j j]kgdmlagfk* afkljme]flk Yf\ YkkmjYf[]k Yk eYq Z] j]YkgfYZdq f][]kkYjq gj hjgh]j lg [Yjjq gml l‘] afl]flagf gj lg ^Y[adalYl] l‘] h]j^gjeYf[] g^ l‘] Aak[Yd <_]fl <_j]]e]fl* Yf\ ^gj l‘] Z]ll]j Ykkmjaf_ Yf\ [gf^ajeaf_ mflg l‘] Jof]jk g^ l‘] ja_‘lk Yf\ Z]f]^alk hjgna\]\ af l‘] Aak[Yd <_]fl <_j]]e]fl, Private Activity Bond Limitations O‘] >alq k‘Ydd Ykkmj] l‘Yl l‘] hjg[]]\k g^ l‘] =gf\k Yf\ l‘] 0./0 =gf\k Yj] fgl kg mk]\ Yk lg [Ymk] l‘] =gf\k lg kYlak^q l‘] hjanYl] Zmkaf]kk l]klk g^ k][lagf /2/’Z( g^ l‘] >g\] gj l‘] hjanYl] dgYf ^afYf[af_ l]kl g^ k][lagf /2/’[( g^ l‘] >g\], Federal Guarantee Prohibition O‘] >alq k‘Ydd fgl lYc] Yfq Y[lagf gj h]jeal gj km^^]j Yfq Y[lagf lg Z] lYc]f a^ l‘] j]kmdl g^ l‘] kYe] ogmd\ Z] lg [Ymk] l‘] 0./0 =gf\k lg Z] y^]\]jYddq _mYjYfl]]\z oal‘af l‘] e]Yfaf_ g^ N][lagf /27’Z( g^ l‘] >g\], Maintenance of Tax-Exemption O‘] >alq k‘Ydd lYc] Ydd Y[lagfk f][]kkYjq lg Ykkmj] l‘] ]p[dmkagf g^ afl]j]kl gf l‘] 0./0 =gf\k ^jge l‘] _jgkk af[ge] g^ l‘] Jof]jk g^ l‘] 0./0 =gf\k lg l‘] kYe] ]pl]fl Yk km[‘ afl]j]kl ak h]jeall]\ lg Z] ]p[dm\]\ ^jge _jgkk af[ge] mf\]j l‘] >g\] Yk af ]^^][l gf l‘] \Yl] g^ akkmYf[] g^ l‘] 0./0 =gf\k, Continuing Disclosure to Owners O‘] >alq [gn]fYflk Yf\ Y_j]]k Zq l‘] Aak[Yd <_]fl <_j]]e]fl l‘Yl al oadd [gehdq oal‘ Yf\ [Yjjq gml Ydd g^ l‘] hjgnakagfk g^ l‘] >gflafmaf_ ?ak[dgkmj] <_j]]e]fl, Igloal‘klYf\af_ Yfq gl‘]j hjgnakagf g^ l‘] Aak[Yd <_]fl <_j]]e]fl* ^Yadmj] g^ l‘] >alq lg [gehdq oal‘ l‘] >gflafmaf_ ?ak[dgkmj] <_j]]e]fl k‘Ydd fgl Z] [gfka\]j]\ Y \]^Ymdl mf\]j l‘] Aak[Yd <_]fl <_j]]e]fl9 ‘go]n]j* Yfq KYjla[ahYlaf_ Pf\]jojal]j gj Yfq ‘gd\]j gj Z]f]^a[aYd gof]j g^ l‘] =gf\k eYq lYc] km[‘ Y[lagfk Yk eYq Z] f][]kkYjq Yf\ YhhjghjaYl] lg [geh]d h]j^gjeYf[] Zq l‘] >alq g^ alk gZda_Ylagfk l‘]j]mf\]j* af[dm\af_ k]]caf_ eYf\Yl] gj kh][a^a[ h]j^gjeYf[] Zq [gmjl gj\]j, Reduction of Special Taxes O‘] >alq [gn]fYflk Yf\ Y_j]]k lg fgl [gfk]fl gj [gf\m[l hjg[]]\af_k oal‘ j]kh][l lg Y j]\m[lagf af l‘] HYpaeme Nh][aYd OYp]k l‘Yl eYq Z] d]na]\ af l‘] ?aklja[l Z]dgo Yf Yegmfl* ^gj Yfq Aak[Yd T]Yj* ]imYd lg//.$g^l‘]Y__j]_Yl]g^l‘]\]Zlk]jna[]\m]gfl‘]=gf\kafkm[‘Aak[YdT]Yj*hdmkYj]YkgfYZd]]klaeYl] g^ <\eafakljYlan] @ph]fk]k ^gj km[‘ Aak[Yd T]Yj, Dl ak Y[cfgod]\_]\ Zq l‘] Aak[Yd <_]fl <_j]]e]fl l‘Yl =gf\gof]jk Yj] hmj[‘Ykaf_ l‘] =gf\k af j]daYf[] gf l‘] ^gj]_gaf_ [gn]fYfl* Yf\ l‘Yl kYa\ [gn]fYfl ak f][]kkYjq lg Ykkmj] l‘] ^mdd Yf\ lae]dq hYqe]fl g^ l‘] =gf\k, ?+/7 INVESTMENTS, DISPOSITION OF INVESTMENT PROCEEDS, LIABILITY OF THE CITY Deposit and Investment of Moneys in Funds Hgf]qk af Yfq ^mf\ gj Y[[gmfl [j]Yl]\ gj ]klYZdak‘]\ Zq l‘] Aak[Yd <_]fl <_j]]e]fl Yf\ ‘]d\ Zq l‘] Aak[Yd <_]fl k‘Ydd Z] afn]kl]\ Zq l‘] Aak[Yd <_]fl af K]jeall]\ Dfn]kle]flk* Yk \aj][l]\ hmjkmYfl lg Yf J^^a[]j{k >]jla^a[Yl] ^ad]\ oal‘ l‘] Aak[Yd <_]fl Yl d]Ykl log ’0( =mkaf]kk ?Yqk af Y\nYf[] g^ l‘] eYcaf_ g^ km[‘ afn]kle]flk, Df l‘] YZk]f[] g^ Yfq km[‘ J^^a[]j{k >]jla^a[Yl]* l‘] Aak[Yd <_]fl k‘Ydd afn]kl Yfq km[‘ egf]qk af K]jeall]\ Dfn]kle]flk \]k[jaZ]\ af [dYmk] ’^( g^ l‘] \]^afalagf l‘]j]g^ o‘a[‘ Zq l‘]aj l]jek eYlmj] hjagj lg l‘] \Yl] gf o‘a[‘ km[‘ egf]qk Yj] j]imaj]\ lg Z] hYa\ gml mf\]j l‘] Aak[Yd <_]fl <_j]]e]fl, O‘] Aak[Yd <_]fl eYq j]dq mhgf Yfq afn]kle]fl \aj][lagf ^jge l‘] >alq Yk Y []jla^a[Ylagf l‘Yl km[‘ afn]kle]fl [gfklalml]k Y K]jeall]\ Dfn]kle]fl, Hgf]qk af Yfq ^mf\ gj Y[[gmfl [j]Yl]\ gj ]klYZdak‘]\ Zq l‘] Aak[Yd <_]fl <_j]]e]fl Yf\ ‘]d\ Zq l‘] Oj]Ykmj]j k‘Ydd Z] afn]kl]\ Zq l‘] Oj]Ykmj]j af Yfq K]jeall]\ Dfn]kle]fl* o‘a[‘ af Yfq ]n]fl Zq l‘]aj l]jek eYlmj] hjagj lg l‘] \Yl] gf o‘a[‘ km[‘ egf]qk Yj] j]imaj]\ lg Z] hYa\ gml mf\]j l‘] Aak[Yd <_]fl <_j]]e]fl9 hjgna\]\ l‘Yl Yegmflk gf \]hgkal af l‘] <\eafakljYlan] @ph]fk] Amf\ eYq Z] afn]kl]\ af Yfq dYo^md afn]kle]fl l‘] >alq eYq eYc], JZda_Ylagfk hmj[‘Yk]\ Yk Yf afn]kle]fl g^ egf]qk af Yfq ^mf\ k‘Ydd Z] \]]e]\ lg Z] hYjl g^ km[‘ ^mf\ gj Y[[gmfl* kmZb][l* ‘go]n]j* lg l‘] j]imaj]e]flk g^ l‘] Aak[Yd <_]fl <_j]]e]fl ^gj ljYfk^]j g^ afl]j]kl ]Yjfaf_k Yf\ hjg^alk j]kmdlaf_ ^jge afn]kle]fl g^ Yegmflk af ^mf\k Yf\ Y[[gmflk, R‘]f]n]j af l‘] Aak[Yd <_]fl <_j]]e]fl Yfq egf]qk Yj] j]imaj]\ lg Z] ljYfk^]jj]\ Zq l‘] >alq lg l‘] Aak[Yd <_]fl* km[‘ ljYfk^]j eYq Z] Y[[gehdak‘]\ Zq ljYfk^]jjaf_ Y dac] Yegmfl g^ K]jeall]\ Dfn]kle]flk, O‘]Aak[Yd<_]flYf\alkY^^adaYl]kgjl‘]Oj]Ykmj]jeYqY[lYkkhgfkgj*Y\nakgj*\]hgkalgjq*hjaf[ahYd gj Y_]fl af l‘] Y[imakalagf gj \akhgkalagf g^ Yfq afn]kle]fl, I]al‘]j l‘] Aak[Yd <_]fl fgj l‘] Oj]Ykmj]j k‘Ydd af[mj Yfq daYZadalq ^gj dgkk]k Yjakaf_ ^jge Yfq afn]kle]flk eY\] hmjkmYfl lg l‘] Aak[Yd <_]fl <_j]]e]fl, O‘] Aak[Yd <_]fl k‘Ydd fgl Z] j]imaj]\ lg \]l]jeaf] l‘] d]_Ydalq g^ Yfq afn]kle]flk, Dfn]kle]flk af Yfq Yf\ Ydd ^mf\k Yf\ Y[[gmflk eYq Z] [geeaf_d]\ af Y k]hYjYl] ^mf\ gj ^mf\k ^gj hmjhgk]k g^ eYcaf_* ‘gd\af_ Yf\ \akhgkaf_ g^ afn]kle]flk* fgloal‘klYf\af_ hjgnakagfk af l‘] Aak[Yd <_]fl <_j]]e]fl ^gj ljYfk^]j lg gj ‘gd\af_ af gj lg l‘] [j]\al g^ hYjla[mdYj ^mf\k gj Y[[gmflk g^ Yegmflk j][]an]\ gj ‘]d\ Zq l‘] Aak[Yd <_]fl gj l‘] Oj]Ykmj]j mf\]j l‘] Aak[Yd <_]fl <_j]]e]fl* hjgna\]\ l‘Yl l‘] Aak[Yd <_]fl gj l‘] Oj]Ykmj]j* Yk Yhhda[YZd]* k‘Ydd Yl Ydd lae]k Y[[gmfl ^gj km[‘ afn]kle]flk klja[ldq af Y[[gj\Yf[] oal‘ l‘] ^mf\k Yf\ Y[[gmflk lg o‘a[‘ l‘]q Yj] [j]\al]\ Yf\ gl‘]joak] Yk hjgna\]\ af l‘] Aak[Yd <_]fl <_j]]e]fl, O‘] Aak[Yd <_]fl gj l‘] Oj]Ykmj]j* Yk Yhhda[YZd]* k‘Ydd k]dd Yl AYaj HYjc]l QYdm]* gj hj]k]fl ^gj j]\]ehlagf* Yfq afn]kle]fl k][mjalqo‘]f]n]j al k‘Ydd Z] f][]kkYjqlg hjgna\] egf]qk lg e]]l Yfqj]imaj]\ hYqe]fl* ljYfk^]j* oal‘\jYoYd gj \akZmjk]e]fl ^jge l‘] ^mf\ gj Y[[gmfl lg o‘a[‘ km[‘ afn]kle]fl k][mjalq ak [j]\al]\ Yf\ f]al‘]j l‘] Aak[Yd <_]fl fgj l‘] Oj]Ykmj]j k‘Ydd Z] daYZd] gj j]khgfkaZd] ^gj Yfq dgkk j]kmdlaf_ ^jge l‘] Y[imakalagf gj \akhgkalagf g^ km[‘ afn]kle]fl k][mjalq af Y[[gj\Yf[] oal‘ l‘] Aak[Yd <_]fl <_j]]e]fl, O‘] Aak[Yd <_]fl k‘Ydd ^mjfak‘ l‘] >alq h]jag\a[ [Yk‘ ljYfkY[lagf klYl]e]flk o‘a[‘ af[dm\] \]lYad ^gj Ydd afn]kle]fl ljYfkY[lagfk ]^^][l]\ Zql‘] Aak[Yd <_]fl gj Zjgc]jk k]d][l]\ Zq l‘] >alq, Phgf l‘] >alq{k ]d][lagf* km[‘ klYl]e]flk oadd Z] \]dan]j]\ naY l‘] Aak[Yd <_]fl{k Jfdaf] Ojmkl Yf\ >mklg\q k]jna[] Yf\ mhgf ]d][laf_ km[‘ k]jna[]* hYh]j klYl]e]flk oadd Z] hjgna\]\ gfdq mhgf j]im]kl, O‘] >alq oYan]k l‘] ja_‘l lg j][]an] Zjgc]jY_] [gf^ajeYlagfk g^ k][mjalq ljYfkY[lagfk ]^^][l]\ Zq l‘] Aak[Yd <_]fl Yk l‘]q g[[mj* lg l‘]]pl]flh]jeall]\ZqdYo, O‘]>alq^mjl‘]jmf\]jklYf\kl‘YlljY\][gf^ajeYlagfk^gjk][mjala]kljYfkY[lagfk ?+0. ]^^][l]\ Zq l‘] Aak[Yd <_]fl oadd Z] YnYadYZd] mhgf j]im]kl Yf\ Yl fg Y\\alagfYd [gkl Yf\ gl‘]j ljY\] [gf^ajeYlagfk eYq Z] gZlYaf]\ ^jge l‘] Yhhda[YZd] Zjgc]j, Limited Obligation O‘] >alq{k gZda_Ylagfk mf\]j l‘] Aak[Yd <_]fl <_j]]e]fl Yj] daeal]\ gZda_Ylagfk g^ l‘] >alq gf Z]‘Yd^ g^ l‘] ?aklja[l Yf\ Yj] hYqYZd] kgd]dq ^jge Yf\ k][mj]\ kgd]dq Zq l‘] Nh][aYd OYp M]n]fm]k Yf\ l‘] Yegmflk af l‘] Nh][aYd OYp Amf\* l‘] =gf\ Amf\ ’af[dm\af_ l‘] Nh][aYd OYp Kj]hYqe]flk <[[gmfl l‘]j]af( Yf\ l‘] M]k]jn] Amf\ [j]Yl]\ mf\]j l‘] Aak[Yd <_]fl <_j]]e]fl, Liability of City O‘] >alq k‘Ydd fgl af[mj Yfq j]khgfkaZadalq af j]kh][l g^ l‘] =gf\k gj l‘] Aak[Yd <_]fl <_j]]e]fl gl‘]j l‘Yf af [gff][lagf oal‘ l‘] \mla]k gj gZda_Ylagfk ]phda[aldq af l‘] Aak[Yd <_]fl <_j]]e]fl gj af l‘] =gf\k Ykka_f]\ lg gj aehgk]\ mhgf al, O‘] >alq k‘Ydd fgl Z] daYZd] af [gff][lagf oal‘ l‘] h]j^gjeYf[] g^ alk \mla]k mf\]j l‘] Aak[Yd <_]fl <_j]]e]fl* ]p[]hl ^gj alk gof f]_da_]f[] gj oadd^md \]^Ymdl, O‘] >alq k‘YddfglZ]Zgmf\lg Yk[]jlYafgjafimaj]Yklgl‘]h]j^gjeYf[]gj gZk]jnYf[]g^ Yfqg^l‘]l]jek*[gf\alagfk [gn]fYflk gj Y_j]]e]flk g^ l‘] Aak[Yd <_]fl af l‘] Aak[Yd <_]fl <_j]]e]fl gj g^ Yfq g^ l‘] \g[me]flk ]p][ml]\ Zq l‘] Aak[Yd <_]fl af [gff][lagf oal‘ l‘] =gf\k* gj Yk lg l‘] ]pakl]f[] g^ Y \]^Ymdl gj ]n]fl g^ \]^Ymdl l‘]j]mf\]j, Df l‘] YZk]f[] g^ ZY\ ^Yal‘* l‘] >alq* af[dm\af_ l‘] Oj]Ykmj]j* eYq [gf[dmkan]dq j]dq* Yk lg l‘] ljml‘ g^ l‘] klYl]e]flk Yf\ l‘] [gjj][lf]kk g^ l‘] ghafagfk ]phj]kk]\ l‘]j]af* mhgf []jla^a[Yl]k gj ghafagfk ^mjfak‘]\ lg l‘] >alq Yf\ [gf^gjeaf_ lg l‘] j]imaj]e]flk g^ l‘] Aak[Yd <_]fl <_j]]e]fl, O‘] >alq* af[dm\af_ l‘] Oj]Ykmj]j* k‘Ydd fgl Z] daYZd] ^gj Yfq ]jjgj g^ bm\_e]fl eY\] af _gg\ ^Yal‘ mfd]kk al k‘Ydd Z] hjgn]\ l‘Yl al oYk f]_da_]fl af Yk[]jlYafaf_ l‘] h]jlaf]fl ^Y[lk, Ig hjgnakagf g^ l‘] Aak[Yd <_]fl <_j]]e]fl k‘Ydd j]imaj] l‘] >alq lg ]ph]f\ gj jakc alk gof _]f]jYd ^mf\k gj gl‘]joak] af[mj Yfq ^afYf[aYd daYZadalq ’gl‘]j l‘Yf oal‘ j]kh][l lg l‘] Nh][aYd OYp M]n]fm]k( af l‘] h]j^gjeYf[] g^ Yfq g^ alk gZda_Ylagfk mf\]j l‘] Aak[Yd <_]fl <_j]]e]fl* gj af l‘] ]p]j[ak] g^ Yfq g^ alk ja_‘lk gj hgo]jk* a^ al k‘Ydd ‘Yn] j]YkgfYZd] _jgmf\k ^gj Z]da]naf_ l‘Yl j]hYqe]fl g^ km[‘ ^mf\k gj Y\]imYl] af\]efalq Y_Yafkl km[‘ jakc gj daYZadalq ak fgl j]YkgfYZdq Ykkmj]\ lg al, O‘] >alq Yf\ l‘] Oj]Ykmj]j eYq j]dq Yf\ k‘Ydd Z] hjgl][l]\ af Y[laf_ gj j]^jYafaf_ ^jge Y[laf_ mhgf Yfq fgla[]* j]kgdmlagf* j]im]kl* [gfk]fl* gj\]j* []jla^a[Yl]* j]hgjl* oYjjYfl* Zgf\ gj gl‘]j hYh]j gj \g[me]fl Z]da]n]\ Zq al lg Z] _]fmaf] Yf\ lg ‘Yn] Z]]f ka_f]\ gj hj]k]fl]\ Zq l‘] hjgh]j hYjlq gj hjgh]j hYjla]k, O‘] >alq eYq [gfkmdl oal‘ [gmfk]d* o‘g eYq Z] l‘] >alq <llgjf]q* oal‘ j]_Yj\ lg d]_Yd im]klagfk* Yf\ l‘] ghafagf g^ km[‘ [gmfk]d k‘Ydd Z] ^mdd Yf\ [gehd]l] Yml‘gjarYlagf Yf\ hjgl][lagf af j]kh][l g^ Yfq Y[lagf lYc]f gj km^^]j]\ Zq al mf\]j l‘] Aak[Yd <_]fl <_j]]e]fl af _gg\ ^Yal‘ Yf\ af Y[[gj\Yf[] l‘]j]oal‘, O‘] >alq k‘Ydd fgl Z] Zgmf\ lg j][g_far] Yfq h]jkgf Yk l‘] Jof]j g^ Y =gf\ mfd]kk Yf\ mflad km[‘ =gf\ ak kmZeall]\ ^gj afkh][lagf* a^ j]imaj]\* Yf\ ‘ak lald] l‘]j]lg kYlak^Y[lgjq ]klYZdak‘]\* a^ \akhml]\, R‘]f]n]j af l‘] Y\eafakljYlagf g^ alk \mla]k mf\]j l‘] Aak[Yd <_]fl <_j]]e]fl l‘] >alq gj l‘] Oj]Ykmj]j k‘Ydd \]]e al f][]kkYjq gj \]kajYZd] l‘Yl Y eYll]j Z] hjgn]\ gj ]klYZdak‘]\ hjagj lg lYcaf_ gj km^^]jaf_ Yfq Y[lagf mf\]j l‘] 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^mjfak‘]\ hmjkmYfl lg Yfq hjgnakagf g^ l‘] Aak[Yd <_]fl <_j]]e]fl* Yf\ l‘] Aak[Yd <_]fl k‘Ydd fgl Z] mf\]j Yfq \mlq lg eYc] Yfq afn]kla_Ylagf gj afimajq Yk lg Yfq klYl]e]flk [gflYaf]\ gj eYll]jk j]^]jj]\ lg af Yfq km[‘ afkljme]fl, O‘] Aak[Yd <_]fl k‘Ydd fgl Z] daYZd] ^gj Yfq ]jjgj g^ bm\_e]fl eY\] af _gg\ ^Yal‘ mfd]kk al k‘Ydd Z] hjgn]\ l‘Yl l‘] Aak[Yd <_]fl oYk f]_da_]fl af Yk[]jlYafaf_ l‘] h]jlaf]fl ^Y[lk, Ig hjgnakagf g^ l‘] Aak[Yd <_]fl <_j]]e]fl k‘Ydd j]imaj] l‘] Aak[Yd <_]fl lg ]ph]f\ gj jakc alk gof ^mf\k gj gl‘]joak] af[mj Yfq ^afYf[aYd daYZadalq af l‘] h]j^gjeYf[] g^ Yfq g^ alk \mla]k mf\]j l‘] Aak[Yd <_]fl <_j]]e]fl* gj af l‘] ]p]j[ak] g^ Yfq g^ alk ja_‘lk gj hgo]jk, O‘] Aak[Yd <_]fl k‘Ydd Z] mf\]j fg gZda_Ylagf lg ]p]j[ak] Yfq g^ l‘] ja_‘lk gj hgo]jk n]kl]\ af al Zq l‘] Aak[Yd <_]fl <_j]]e]fl Yl l‘] j]im]kl gj \aj][lagf g^ Yfq g^ l‘] Jof]jk hmjkmYfl lg l‘] Aak[Yd <_]fl <_j]]e]fl mfd]kk km[‘ Jof]jk k‘Ydd ‘Yn] g^^]j]\ lg l‘] Aak[Yd <_]fl j]YkgfYZd] k][mjalq gj af\]efalq Y_Yafkl l‘] [gklk* ]ph]fk]k Yf\ daYZadala]k o‘a[‘ ea_‘l Z] af[mjj]\ Zq al af [gehdaYf[] oal‘ km[‘ j]im]kl gj \aj][lagf, O‘] Aak[Yd <_]fl eYq Z][ge] l‘] gof]j g^ l‘] =gf\k oal‘ l‘] kYe] ja_‘lk al ogmd\ ‘Yn] a^ al o]j] fgl l‘] Aak[Yd <_]fl, ?+01 Information O‘] Aak[Yd <_]fl k‘Ydd hjgna\] lg l‘] >alq km[‘ af^gjeYlagf j]dYlaf_ lg l‘] =gf\k Yf\ l‘] ^mf\k Yf\ Y[[gmflk eYaflYaf]\ Zq l‘] Aak[Yd <_]fl mf\]j l‘] Aak[Yd <_]fl <_j]]e]fl Yk l‘] >alq k‘Ydd j]YkgfYZdq j]im]kl* af[dm\af_ Zml fgl daeal]\ lg imYjl]jdq klYl]e]flk j]hgjlaf_ ^mf\k ‘]d\ Yf\ ljYfkY[lagfk Zq l‘] Aak[Yd <_]fl, Notice to Fiscal Agent O‘] Aak[Yd <_]fl eYq j]dq Yf\ k‘Ydd Z] hjgl][l]\ af Y[laf_ gj j]^jYafaf_ ^jge Y[laf_ mhgf Yfq fgla[]* j]kgdmlagf* j]im]kl* [gfk]fl* gj\]j* []jla^a[Yl]* j]hgjl* oYjjYfl* =gf\ gj gl‘]j hYh]j gj \g[me]fl Z]da]n]\ Zq al lg Z] _]fmaf] Yf\ lg ‘Yn] Z]]f ka_f]\ gj hj]k]fl]\ Zq l‘] hjgh]j hYjlq gj hjgh]j hYjla]k, O‘] Aak[Yd <_]fl eYq [gfkmdl oal‘ [gmfk]d* o‘g eYq Z] [gmfk]d lg l‘] >alq* oal‘ j]_Yj\ lg d]_Yd im]klagfk* Yf\ l‘] ghafagf g^ km[‘ [gmfk]d k‘Ydd Z] ^mdd Yf\ [gehd]l] Yml‘gjarYlagf Yf\ hjgl][lagf af j]kh][l g^ Yfq Y[lagf lYc]f gj km^^]j]\ Zq al mf\]j l‘] Aak[Yd <_]fl <_j]]e]fl af _gg\ ^Yal‘ Yf\ af Y[[gj\Yf[] l‘]j]oal‘, O‘] Aak[Yd <_]fl k‘Ydd fgl Z] Zgmf\ lg j][g_far] Yfq h]jkgf Yk l‘] Jof]j g^ Y =gf\ mfd]kk Yf\ mflad km[‘ =gf\ ak kmZeall]\ ^gj afkh][lagf* a^ j]imaj]\* Yf\ ‘ak lald] l‘]j]lg kYlak^Y[lgjadq ]klYZdak‘]\* a^ \akhml]\, R‘]f]n]j af l‘] Y\eafakljYlagf g^ alk \mla]k mf\]j l‘] Aak[Yd <_]fl <_j]]e]fl l‘] Aak[Yd <_]fl k‘Ydd \]]e al f][]kkYjq gj \]kajYZd] l‘Yl Y eYll]j Z] hjgn]\ gj ]klYZdak‘]\ hjagj lg lYcaf_ gj km^^]jaf_ Yfq Y[lagf mf\]j l‘] Aak[Yd <_]fl <_j]]e]fl* km[‘ eYll]j ’mfd]kk gl‘]j ]na\]f[] af j]kh][l l‘]j]g^ Z] kh][a^a[Yddq hj]k[jaZ]\ af l‘] Aak[Yd <_]fl <_j]]e]fl( eYq* af l‘] YZk]f[] g^ oadd^md eak[gf\m[l gf l‘] hYjl g^ l‘] Aak[Yd <_]fl* Z] \]]e]\ lg Z] [gf[dmkan]dq hjgn]\ Yf\ ]klYZdak‘]\ Zq Yf J^^a[]j{k >]jla^a[Yl]* Yf\ km[‘ []jla^a[Yl] k‘Ydd Z] ^mdd oYjjYfl lg l‘] Aak[Yd <_]fl ^gj Yfq Y[lagf lYc]f gj km^^]j]\ mf\]j l‘] hjgnakagfk g^ l‘] Aak[Yd <_]fl <_j]]e]fl gj Yfq Nmhhd]e]flYd <_j]]e]fl mhgf l‘] ^Yal‘ l‘]j]g^* Zml af alk \ak[j]lagf l‘] Aak[Yd <_]fl eYq* af da]m l‘]j]g^* Y[[]hl gl‘]j ]na\]f[] g^ km[‘ eYll]j gj eYq j]imaj] km[‘ Y\\alagfYd ]na\]f[] Yk lg al eYq k]]e j]YkgfYZd], Compensation, Indemnification O‘] >alq k‘Ydd hYq lg l‘] Aak[Yd <_]fl ^jge lae] lg lae] j]YkgfYZd] [geh]fkYlagf ^gj Ydd k]jna[]k j]f\]j]\ Yk Aak[Yd <_]fl mf\]j l‘] Aak[Yd <_]fl <_j]]e]fl* Yf\ Ydkg Ydd j]YkgfYZd] ]ph]fk]k* [‘Yj_]k* [gmfk]d ^]]k Yf\ gl‘]j \akZmjk]e]flk* af[dm\af_ l‘gk] g^ l‘]aj Yllgjf]qk* Y_]flk Yf\ ]ehdgq]]k* af[mjj]\ af Yf\ YZgml l‘] h]j^gjeYf[] g^ l‘]aj hgo]jk Yf\ \mla]k mf\]j l‘] Aak[Yd <_]fl <_j]]e]fl* Zml l‘] Aak[Yd <_]fl k‘Ydd fgl ‘Yn] Y da]f l‘]j]^gj gf Yfq ^mf\k Yl Yfq lae] ‘]d\ Zq al mf\]j l‘] Aak[Yd <_]fl <_j]]e]fl, O‘] >alq ^mjl‘]j Y_j]]k* lg l‘] ]pl]fl h]jeall]\ Zq Yhhda[YZd] dYo* lg af\]efa^q Yf\ kYn] l‘] Aak[Yd <_]fl* alk g^^a[]jk* ]ehdgq]]k* \aj][lgjk Yf\ Y_]flk ‘Yjed]kk Y_Yafkl Yfq [gklk* ]ph]fk]k* [dYaek gj daYZadala]k o‘Ylkg]n]j* af[dm\af_ oal‘gml daealYlagf ^]]k Yf\ ]ph]fk]k g^ alk Yllgjf]qk* o‘a[‘ al eYq af[mj af l‘] ]p]j[ak] Yf\ h]j^gjeYf[] g^ alk hgo]jk Yf\ \mla]k mf\]j l‘] Aak[Yd <_]fl <_j]]e]fl o‘a[‘ Yj] fgl \m] lg alk f]_da_]f[] gj oadd^md eak[gf\m[l, O‘] gZda_Ylagf g^ l‘] >alq mf\]j l‘] Aak[Yd <_]fl <_j]]e]fl k‘Ydd kmjnan] j]ka_fYlagf gj j]egnYd g^ l‘] Aak[Yd <_]fl mf\]j l‘] Aak[Yd <_]fl <_j]]e]fl Yf\ hYqe]fl g^ l‘] =gf\k Yf\ \ak[‘Yj_] g^ l‘] Aak[Yd <_]fl <_j]]e]fl* Zml Yfq egf]lYjq gZda_Ylagf g^ l‘] >alq Yjakaf_ mf\]j l‘] Aak[Yd <_]fl <_j]]e]fl k‘Ydd Z] daeal]\ kgd]dq lg Yegmflk gf \]hgkal af l‘] <\eafakljYlan] @ph]fk] Amf\, ?+02 MODIFICATION OR AMENDMENT OF THE FISCAL AGENT AGREEMENT Amendments Permitted O‘] Aak[Yd <_]fl <_j]]e]fl Yf\ l‘] ja_‘lk Yf\ gZda_Ylagfk g^ l‘] >alq Yf\ g^ l‘] Jof]jk g^ l‘] =gf\k eYq Z] eg\a^a]\ gj Ye]f\]\ Yl Yfq lae] Zq Y Nmhhd]e]flYd <_j]]e]fl hmjkmYfl lg l‘] Y^^ajeYlan] ngl] Yl Y e]]laf_ g^ Jof]jk* gj oal‘ l‘] ojall]f [gfk]fl oal‘gml Y e]]laf_* g^ l‘] Jof]jk g^ Yl d]Ykl kaplq h]j[]fl ’4.$( af Y__j]_Yl] hjaf[ahYd Yegmfl g^ l‘] =gf\k l‘]f JmlklYf\af_* ]p[dmkan] g^ =gf\k \akimYda^a]\, Ig km[‘ eg\a^a[Ylagf gj Ye]f\e]fl k‘Ydd ’a( ]pl]f\ l‘] eYlmjalq g^ Yfq =gf\ gj j]\m[] l‘] afl]j]kl jYl] l‘]j]gf* gj gl‘]joak] Ydl]j gj aehYaj l‘] gZda_Ylagf g^ l‘] >alq lg hYq l‘] hjaf[ahYd g^* Yf\ l‘] afl]j]kl Yf\ Yfq hj]eame gf* Yfq =gf\* oal‘gml l‘] ]phj]kk [gfk]fl g^ l‘] Jof]j g^ km[‘ =gf\* gj ’aa( h]jeal l‘] [j]Ylagf Zq l‘] >alq g^ Yfq hd]\_] gj da]f mhgf l‘] Nh][aYd OYp]k kmh]jagj lg gj gf Y hYjalq oal‘ l‘] hd]\_] Yf\ da]f [j]Yl]\ ^gj l‘] Z]f]^al g^ l‘] =gf\k ’]p[]hl Yk gl‘]joak] h]jeall]\ Zq l‘] <[l* l‘] dYok g^ l‘] NlYl] g^ >Yda^gjfaY gj l‘] Aak[Yd <_]fl <_j]]e]fl(* gj j]\m[] l‘] h]j[]flY_] g^ =gf\k j]imaj]\ ^gj l‘] Ye]f\e]fl g^ l‘] Aak[Yd <_]fl <_j]]e]fl, <fq km[‘ Ye]f\e]fl eYq fgl eg\a^q Yfq g^ l‘] ja_‘lk gj gZda_Ylagfk g^ l‘] Aak[Yd <_]fl oal‘gml alk ojall]f [gfk]fl, O‘] Aak[Yd <_]fl <_j]]e]fl Yf\ l‘] ja_‘lk Yf\ gZda_Ylagfk g^ l‘] >alq Yf\ g^ l‘] Jof]jk eYq Ydkg Z] eg\a^a]\ gj Ye]f\]\ Yl Yfq lae] Zq Y Nmhhd]e]flYd <_j]]e]fl* oal‘gml l‘] [gfk]fl g^ Yfq Jof]jk* gfdq lg l‘] ]pl]fl h]jeall]\ Zq dYo Yf\ gfdq ^gj Yfqgf] gj egj] g^ l‘] ^gddgoaf_ hmjhgk]k8 ’<( lg Y\\ lg l‘] [gn]fYflk Yf\ Y_j]]e]flk g^ l‘] >alq af l‘] Aak[Yd <_]fl <_j]]e]fl [gflYaf]\* gl‘]j [gn]fYflk Yf\ Y_j]]e]flk l‘]j]Y^l]j lg Z] gZk]jn]\* gj lg daeal gj kmjj]f\]j Yfq ja_‘l gj hgo]j j]k]jn]\ lg gj [gf^]jj]\ mhgf l‘] >alq af l‘] Aak[Yd <_]fl <_j]]e]fl9 ’=( lg eYc] eg\a^a[Ylagfk fgl Y\n]jk]dq Y^^][laf_ Yfq gmlklYf\af_ k]ja]k g^ =gf\k g^ l‘] >alq af Yfq eYl]jaYd j]kh][l9 ’>( lg eYc] km[‘ hjgnakagfk ^gj l‘] hmjhgk] g^ [mjaf_ Yfq YeZa_malq* gj g^ [mjaf_* [gjj][laf_ gj kmhhd]e]flaf_ Yfq \]^][lan] hjgnakagf [gflYaf]\ af l‘] Aak[Yd <_]fl <_j]]e]fl* gj af j]_Yj\ lg im]klagfk Yjakaf_ mf\]j l‘] Aak[Yd <_]fl <_j]]e]fl* Yk l‘] >alq Yf\ l‘] Aak[Yd <_]fl eYq \]]e f][]kkYjq gj \]kajYZd] Yf\ fgl af[gfkakl]fl oal‘ l‘] Aak[Yd <_]fl <_j]]e]fl* Yf\ o‘a[‘ k‘Ydd fgl Y\n]jk]dq Y^^][l l‘] ja_‘lk g^ l‘] Jof]jk g^ l‘] =gf\k9 ’?( af [gff][lagf oal‘ l‘] akkmYf[] g^ KYjalq =gf\k, Owners’ Meetings O‘] >alq eYq Yl Yfq lae] [Ydd Y e]]laf_ g^ l‘] Jof]jk, Df km[‘ ]n]fl l‘] >alq ak Yml‘gjar]\ lg ^ap l‘] lae] Yf\ hdY[] g^ kYa\ e]]laf_ Yf\ lg hjgna\] ^gj l‘] _anaf_ g^ fgla[] l‘]j]g^* Yf\ lg ^ap Yf\ Y\ghl jmd]k Yf\ j]_mdYlagfk ^gj l‘] [gf\m[l g^ kYa\ e]]laf_, Procedure for Amendment with Written Consent of Owners O‘] >alq Yf\ l‘] Aak[Yd <_]fl eYq Yl Yfq lae] Y\ghl Y Nmhhd]e]flYd <_j]]e]fl Ye]f\af_ l‘] hjgnakagfk g^ l‘] =gf\k gj g^ l‘] Aak[Yd <_]fl <_j]]e]fl gj Yfq Nmhhd]e]flYd <_j]]e]fl* lg l‘] ]pl]fl l‘Yl km[‘ Ye]f\e]fl ak h]jeall]\* lg lYc] ]^^][l o‘]f Yf\ Yk hjgna\]\ af l‘] Aak[Yd <_]fl <_j]]e]fl, < [ghq g^ km[‘ Nmhhd]e]flYd <_j]]e]fl* lg_]l‘]j oal‘ Y j]im]kl lg Jof]jk ^gj l‘]aj [gfk]fl l‘]j]lg* k‘Ydd Z] eYad]\ Zq ^ajkl [dYkk eYad* Zq l‘] Aak[Yd <_]fl lg ]Y[‘ Jof]j g^ =gf\k JmlklYf\af_* Zml ^Yadmj] lg eYad [gha]k g^ km[‘ Nmhhd]e]flYd <_j]]e]fl Yf\ j]im]kl k‘Ydd fgl Y^^][l l‘] nYda\alq g^ l‘] Nmhhd]e]flYd <_j]]e]fl o‘]f Ykk]fl]\ lg Yk af hjgna\]\ af l‘] Aak[Yd <_]fl <_j]]e]fl, ?+03 Nm[‘ Nmhhd]e]flYd <_j]]e]fl k‘Ydd fgl Z][ge] ]^^][lan] mfd]kkl‘]j] k‘Ydd Z] ^ad]\ oal‘ l‘] Aak[Yd <_]fl l‘] ojall]f [gfk]flk g^ l‘] Jof]jk g^ Yl d]Ykl kaplq h]j[]fl ’4.$( af Y__j]_Yl] hjaf[ahYd Yegmfl g^ l‘] =gf\k l‘]f JmlklYf\af_ ’]p[dmkan] g^ =gf\k \akimYda^a]\( Yf\ Y fgla[] k‘Ydd ‘Yn] Z]]f eYad]\ Yk hjgna\]\afl‘] Aak[Yd<_]fl <_j]]e]fl, @Y[‘ km[‘[gfk]flk‘Ydd Z] ]^^][lan] gfdqa^ Y[[gehYfa]\Zq hjgg^ g^ gof]jk‘ah g^ l‘] =gf\k ^gj o‘a[‘ km[‘ [gfk]fl ak _an]f* o‘a[‘ hjgg^ k‘Ydd Z] km[‘ Yk ak h]jeall]\, <fq km[‘ [gfk]fl k‘Ydd Z] Zaf\af_ mhgf l‘] Jof]j g^ l‘] =gf\k _anaf_ km[‘ [gfk]fl Yf\ gf Yfq kmZk]im]fl Jof]j ’o‘]l‘]jgj fgl km[‘kmZk]im]fl Jof]j ‘Ykfgla[] l‘]j]g^( mfd]kk km[‘ [gfk]fl akj]ngc]\ af ojalaf_ Zq l‘] Jof]j _anaf_ km[‘ [gfk]fl gj Y kmZk]im]fl Jof]j Zq ^adaf_ km[‘ j]ng[Ylagf oal‘ l‘] Aak[Yd <_]fl hjagj lg l‘] \Yl] o‘]f l‘] fgla[] hjgna\]\ ^gj af l‘] Aak[Yd <_]fl <_j]]e]fl ‘Yk Z]]f eYad]\, <^l]j l‘] Jof]jk g^ l‘] j]imaj]\ h]j[]flY_] g^ =gf\k k‘Ydd ‘Yn] ^ad]\ l‘]aj [gfk]flk lg l‘] Nmhhd]e]flYd <_j]]e]fl* l‘] >alq k‘Ydd eYad Y fgla[] lg l‘] Jof]jk af l‘] eYff]j hjgna\]\ af l‘] Aak[Yd <_]fl <_j]]e]fl ^gj l‘] eYadaf_ g^ l‘] Nmhhd]e]flYd <_j]]e]fl* klYlaf_ af kmZklYf[] l‘Yl l‘] Nmhhd]e]flYd <_j]]e]fl ‘Yk Z]]f [gfk]fl]\ lg Zq l‘] Jof]jk g^ l‘] j]imaj]\ h]j[]flY_] g^ =gf\k Yf\ oadd Z] ]^^][lan] Yk hjgna\]\ af l‘] Aak[Yd <_]fl <_j]]e]fl ’Zml ^Yadmj] lg eYad [gha]k g^ kYa\ fgla[] k‘Ydd fgl Y^^][l l‘] nYda\alq g^ l‘] Nmhhd]e]flYd <_j]]e]fl gj [gfk]flk l‘]j]lg(, Kjgg^ g^ l‘] eYadaf_ g^ km[‘ fgla[] k‘Ydd Z] ^ad]\ oal‘ l‘] Aak[Yd <_]fl, < j][gj\* [gfkaklaf_ g^ l‘] hYh]jk lg Z] ^ad]\ oal‘ l‘] Aak[Yd <_]fl*k‘YddZ]hjgg^g^l‘]eYll]jkl‘]j]afklYl]\ mfladl‘][gfljYjqakhjgn]\, O‘]Nmhhd]e]flYd<_j]]e]fl k‘Ydd Z][ge] ]^^][lan] mhgf l‘] ^adaf_ oal‘ l‘] Aak[Yd <_]fl g^ l‘] hjgg^ g^ eYadaf_ g^ km[‘ fgla[]* Yf\ l‘] Nmhhd]e]flYd <_j]]e]fl k‘Ydd Z] \]]e]\ [gf[dmkan]dq Zaf\af_ ’]p[]hl Yk gl‘]joak] kh][a^a[Yddq hjgna\]\ af l‘] Aak[Yd <_]fl <_j]]e]fl( mhgf l‘] >alq Yf\ l‘] Jof]jk g^ Ydd =gf\k Yl l‘] ]phajYlagf g^ kaplq ’4.( \Yqk Y^l]j km[‘ ^adaf_* ]p[]hl af l‘] ]n]fl g^ Y ^afYd \][j]] g^ Y [gmjl g^ [geh]l]fl bmjak\a[lagf k]llaf_ Yka\] km[‘ [gfk]fl af Y d]_Yd Y[lagf gj ]imalYZd] hjg[]]\af_ ^gj km[‘ hmjhgk] [gee]f[]\ oal‘af km[‘ kaplq+\Yq h]jag\, Disqualified Bonds =gf\k gof]\ gj ‘]d\ ^gj l‘] Y[[gmfl g^ l‘] >alq* ]p[]hlaf_ Yfq h]fkagf gj j]laj]e]fl ^mf\* k‘Ydd fgl Z] \]]e]\ JmlklYf\af_ ^gj l‘] hmjhgk] g^ Yfq ngl]* [gfk]fl gj gl‘]j Y[lagf gj Yfq [Yd[mdYlagf g^ JmlklYf\af_ =gf\k* Yf\ k‘Ydd fgl Z] ]flald]\ lg ngl] mhgf* [gfk]fl lg* gj lYc] Yfq gl‘]j Y[lagf, Effect of Supplemental Agreement Ajge Yf\ Y^l]j l‘] lae] Yfq Nmhhd]e]flYd <_j]]e]fl Z][ge]k ]^^][lan]* l‘] Aak[Yd <_]fl <_j]]e]fl k‘Ydd Z] \]]e]\ lg Z] eg\a^a]\ Yf\ Ye]f\]\ af Y[[gj\Yf[] l‘]j]oal‘* l‘] j]kh][lan] ja_‘lk* \mla]k Yf\ gZda_Ylagfk mf\]j l‘] Aak[Yd <_]fl <_j]]e]fl g^ l‘] >alq Yf\ Ydd Jof]jk g^ =gf\k JmlklYf\af_ k‘Ydd l‘]j]Y^l]j Z] \]l]jeaf]\* ]p]j[ak]\ Yf\ ]f^gj[]\ mf\]j l‘] Aak[Yd <_]fl <_j]]e]fl kmZb][l af Ydd j]kh][lk lg km[‘ eg\a^a[Ylagfk Yf\ Ye]f\e]flk* Yf\ Ydd l‘] l]jek Yf\ [gf\alagfk g^ Yfq km[‘ Nmhhd]e]flYd <_j]]e]fl k‘Ydd Z] \]]e]\ lg Z] hYjl g^ l‘] l]jek Yf\ [gf\alagfk g^ l‘] Aak[Yd <_]fl <_j]]e]fl ^gj Yfq Yf\ Ydd hmjhgk]k, Endorsement or Replacement of Bonds Issued After Amendments O‘] >alqeYq \]l]jeaf] l‘Yl =gf\k akkm]\ Yf\ \]dan]j]\ Y^l]j l‘] ]^^][lan] \Yl] g^ Yfq Y[lagf lYc]f k‘Ydd Z]Yj Y fglYlagf* Zq ]f\gjk]e]fl gj gl‘]joak]* af ^gje Yhhjgn]\ Zq l‘] >alq* Yk lg km[‘ Y[lagf, Df l‘Yl [Yk]* mhgf \]eYf\ g^ l‘] Jof]j g^ Yfq =gf\ JmlklYf\af_ Yl km[‘ ]^^][lan] \Yl] Yf\ hj]k]flYlagf g^ ‘ak =gf\ ^gj l‘Yl hmjhgk] Yl l‘] Kjaf[ahYd J^^a[] gj Yl km[‘ gl‘]j g^^a[] Yk l‘] >alq eYq k]d][l Yf\ \]ka_fYl] ^gj l‘Yl hmjhgk]* Y kmalYZd] fglYlagf k‘Ydd Z] eY\] gf km[‘ =gf\, O‘] >alq eYq \]l]jeaf] l‘Yl f]o =gf\k* kg eg\a^a]\ Yk af l‘] ghafagf g^ l‘] >alq ak f][]kkYjq lg [gf^gje lg km[‘ Jof]jk{ Y[lagf* k‘Ydd Z] hj]hYj]\* ]p][ml]\ Yf\ \]dan]j]\, Df l‘Yl [Yk]* mhgf \]eYf\ g^ l‘] Jof]j g^ Yfq =gf\k l‘]f JmlklYf\af_* km[‘ f]o ?+04 =gf\k k‘Ydd Z] ]p[‘Yf_]\ Yl l‘] Kjaf[ahYd J^^a[] oal‘gml [gkl lg Yfq Jof]j* ^gj =gf\k l‘]f JmlklYf\af_* mhgf kmjj]f\]j g^ km[‘ =gf\k, Amendatory Endorsement of Bonds O‘]k] hjgnakagfk k‘Ydd fgl hj]n]fl Yfq Jof]j ^jge Y[[]hlaf_ Yfq Ye]f\e]fl Yk lg l‘] hYjla[mdYj =gf\k ‘]d\ Zq ‘ae* hjgna\]\ l‘Yl \m] fglYlagf l‘]j]g^ ak eY\] gf km[‘ =gf\k, MISCELLANEOUS Discharge of Agreement O‘] >alq k‘Ydd ‘Yn] l‘] ghlagf lg hYq Yf\ \ak[‘Yj_] l‘] ]flaj] af\]Zl]\f]kk gf Ydd gj Yfq hgjlagf g^ l‘] =gf\k JmlklYf\af_ af Yfqgf] gj egj] g^ l‘] ^gddgoaf_ oYqk8 ’<( Zq o]dd Yf\ ljmdq hYqaf_ gj [Ymkaf_ lg Z] hYa\ l‘] hjaf[ahYd g^* Yf\ afl]j]kl Yf\ Yfq hj]eame gf* km[‘ =gf\k JmlklYf\af_* Yk Yf\ o‘]f l‘] kYe] Z][ge] \m] Yf\ hYqYZd]9 ’=( Zq \]hgkalaf_ oal‘ l‘] Aak[Yd <_]fl* af ljmkl* Yl* gj Z]^gj] eYlmjalq* egf]q o‘a[‘* lg_]l‘]j oal‘ l‘] Yegmflk l‘]f gf \]hgkal af l‘] ^mf\k Yf\ Y[[gmflk ak ^mddq km^^a[a]fl lg hYq km[‘ =gf\k JmlklYf\af_* af[dm\af_ Ydd hjaf[ahYd* afl]j]kl Yf\ j]\]ehlagf hj]eamek9 gj ’>( Zq ajj]ng[YZdq \]hgkalaf_ oal‘ l‘] Aak[Yd <_]fl* af ljmkl* [Yk‘ gj A]\]jYd N][mjala]k af km[‘ Yegmfl Yk l‘] >alq k‘Ydd \]l]jeaf] Yk [gf^aje]\ Zq =gf\ >gmfk]d gj Yf af\]h]f\]fl []jla^a]\ hmZda[ Y[[gmflYfl oadd* lg_]l‘]j oal‘ l‘] afl]j]kl lg Y[[jm] l‘]j]gf Yf\ egf]qk l‘]f gf \]hgkal af l‘] ^mf\ Yf\ Y[[gmflk* Z] ^mddq km^^a[a]fl lg hYq Yf\ \ak[‘Yj_] l‘] af\]Zl]\f]kk gf km[‘ =gf\k ’af[dm\af_ Ydd hjaf[ahYd* afl]j]kl Yf\ j]\]ehlagf hj]eamek( Yl gj Z]^gj] l‘]aj j]kh][lan] eYlmjalq \Yl]k, D^ l‘] >alq k‘Ydd ‘Yn] lYc]f Yfq g^ l‘] Y[lagfk kh][a^a]\ af ’<(* ’=( gj ’>( YZgn]* Yf\ a^ km[‘ =gf\k Yj] lg Z] j]\]]e]\ hjagj lg l‘] eYlmjalq l‘]j]g^ fgla[] g^ km[‘ j]\]ehlagf k‘Ydd ‘Yn] Z]]f _an]f Yk af l‘] Aak[Yd <_]fl <_j]]e]fl hjgna\]\ gj hjgnakagf kYlak^Y[lgjq lg l‘] Aak[Yd <_]fl k‘Ydd ‘Yn] Z]]f eY\] ^gj l‘] _anaf_ g^ km[‘ fgla[]* l‘]f* Yl l‘] ]d][lagf g^ l‘] >alq* Yf\ fgloal‘klYf\af_ l‘Yl Yfq =gf\k k‘Ydd fgl ‘Yn] Z]]f kmjj]f\]j]\ ^gj hYqe]fl* l‘] hd]\_] g^ l‘] Nh][aYd OYp]k Yf\ gl‘]j ^mf\k hjgna\]\ ^gj af l‘] Aak[Yd<_]fl <_j]]e]fl Yf\Yddgl‘]jgZda_Ylagfkg^l‘]>alqmf\]j l‘]Aak[Yd <_]fl<_j]]e]fl oal‘j]kh][l lg km[‘ =gf\k JmlklYf\af_ k‘Ydd []Yk] Yf\ l]jeafYl], Igloal‘klYf\af_ l‘] ^gj]_gaf_* l‘] gZda_Ylagf g^ l‘] >alqlg hYqgj [Ymk] lg Z] hYa\ lgl‘] Jof]jk g^l‘] =gf\k fgl kgkmjj]f\]j]\ Yf\ hYa\ Ydd kmek \m] l‘]j]gf* Ydd Yegmflk goaf_ lg l‘] Aak[Yd <_]fl* Yf\ gl‘]joak] lg Ykkmj] l‘Yl fg Y[lagf ak lYc]f gj ^Yad]\ lg Z] lYc]f a^ km[‘ Y[lagf gj ^Yadmj] Y\n]jk]dq Y^^][lk l‘] ]p[dmkagf g^ afl]j]kl gf l‘] =gf\k ^jge _jgkk af[ge] ^gj ^]\]jYd af[ge] lYp hmjhgk]k* k‘Ydd [gflafm] af Yfq ]n]fl, Phgf [gehdaYf[] Zq l‘] >alq oal‘ l‘] ^gj]_gaf_ oal‘ j]kh][l lg Ydd =gf\k JmlklYf\af_* Yfq ^mf\k ‘]d\ Zq l‘] Aak[Yd <_]fl Y^l]j hYqe]fl g^ Ydd ^]]k Yf\ ]ph]fk]k g^ l‘] Aak[Yd <_]fl* o‘a[‘ Yj] fgl j]imaj]\ ^gj l‘] hmjhgk]k g^ l‘] hj][]\af_ hYjY_jYh‘* k‘Ydd Z] hYa\ gn]j lg l‘] >alq Yf\ Yfq Nh][aYd OYp]k l‘]j]Y^l]j j][]an]\ Zq l‘] >alq k‘Ydd fgl Z] j]eall]\ lg l‘] Aak[Yd <_]fl Zml k‘Ydd Z] j]lYaf]\ Zq l‘] >alq lg Z] mk]\ ^gj Yfq hmjhgk] h]jeall]\ mf\]j l‘] <[l, Bond Insurer Notice Provisions O‘] =gf\ Dfkmj]j k‘Ydd Z] hjgna\]\ oal‘ l‘] ^gddgoaf_ af^gjeYlagf Zq l‘] >alq gj Aak[Yd <_]fl* Yk l‘] [Yk] eYq Z]8 ?+05 ’/( Og l‘] ]pl]fl fgl gl‘]joak]^ad]\ oal‘ l‘] HNM={k @HH< kqkl]e* km[‘ gl‘]j af^gjeYlagf* \YlY gj j]hgjlk Yk l‘] =gf\ Dfkmj]j k‘Ydd j]YkgfYZdq j]im]kl ^jge lae] lg lae], ’0( Igla[] g^ Yfq \jYo mhgf l‘] M]k]jn] Amf\ oal‘af log =mkaf]kk ?Yqk Y^l]j cfgod]\_] l‘]j]g^ gl‘]j l‘Yf ’a( oal‘\jYoYdk g^ Yegmflk af ]p[]kk g^ l‘] M]k]jn] M]imaj]e]fl Yf\ ’aa( oal‘\jYoYdk af [gff][lagf oal‘ Y j]^mf\af_ g^ =gf\k, ’1( Igla[] g^ Yfq \]^Ymdl Y[lmYddq cfgof lg l‘] Aak[Yd <_]fl gj >alq oal‘af ^an] =mkaf]kk ?Yqk Y^l]j cfgod]\_] l‘]j]g^, ’2( Kjagj fgla[] g^ l‘] Y\nYf[] j]^mf\af_ gj j]\]ehlagf g^ Yfq g^ l‘] Dfkmj]\ =gf\k* af[dm\af_ l‘] hjaf[ahYd Yegmfl* eYlmjala]k Yf\ >PNDK fmeZ]jk l‘]j]g^, ’3( Igla[] g^ l‘] j]ka_fYlagf gj j]egnYd g^ l‘] Aak[Yd <_]fl Yf\ l‘] Yhhgafle]fl g^* Yf\ Y[[]hlYf[] g^ \mla]k Zq* Yfq km[[]kkgj l‘]j]lg, ’4( Igla[] g^ l‘] [gee]f[]e]fl g^ Yf Dfkgdn]f[q Kjg[]]\af_ ’Yk \]^af]\ af l‘] <_j]]e]fl(, ’5( Igla[] g^ l‘] eYcaf_ g^ Yfq [dYae af [gff][lagf oal‘ Yfq Dfkgdn]f[q Kjg[]]\af_ k]]caf_ l‘] Ynga\Yf[] Yk Y hj]^]j]flaYd ljYfk^]j g^ Yfq hYqe]fl g^ hjaf[ahYd g^* gj afl]j]kl gf* l‘] Dfkmj]\ =gf\k, ’6( < ^mdd gja_afYd ljYfk[jahl g^ Ydd hjg[]]\af_k j]dYlaf_ lg l‘] ]p][mlagf g^ Yfq Ye]f\e]fl* kmhhd]e]fl* gj oYan]j lg l‘ak <_j]]e]fl, ’7( <dd j]hgjlk* fgla[]k Yf\ [gjj]khgf\]f[] lg Z] \]dan]j]\ lg =gf\gof]jk mf\]j l‘] l]jek g^ l‘] <_j]]e]fl, ’/.( O‘] =gf\ Dfkmj]j k‘Ydd ‘Yn] l‘] ja_‘l lg j][]an] km[‘ Y\\alagfYd af^gjeYlagf Yk al eYq j]YkgfYZdq j]im]kl, ’//( O‘] >alq oadd h]jeal l‘] =gf\ Dfkmj]j lg \ak[mkk l‘] Y^^Yajk* ^afYf[]k Yf\ Y[[gmflk g^ l‘] ?aklja[l gj Yfq af^gjeYlagf l‘] =gf\ Dfkmj]j eYq j]YkgfYZdq j]im]kl j]_Yj\af_ l‘] k][mjalq ^gj l‘] =gf\k oal‘YhhjghjaYl]g^^a[]jkg^l‘]>alqYf\oaddmk][gee]j[aYddqj]YkgfYZd]]^^gjlklg]fYZd]l‘]=gf\Dfkmj]j lg ‘Yn] Y[[]kklg l‘] ^Y[adala]k* Zggck Yf\ j][gj\k g^ l‘] ?aklja[l gf Yfq =mkaf]kk ?Yq mhgf j]YkgfYZd] hjagj fgla[], ’/0( O‘] Aak[Yd <_]fl k‘Ydd fgla^q l‘] =gf\ Dfkmj]j g^ Yfq cfgof ^Yadmj] g^ l‘] >alq lg hjgna\] fgla[]k* []jla^a[Yl]k Yf\ gl‘]j af^gjeYlagf mf\]j l‘] <_j]]e]fl, Bond Insurer as Third Party Beneficiary O‘] =gf\ Dfkmj]j ak ‘]j]Zq ]phj]kkdq eY\] Y l‘aj\ hYjlq Z]f]^a[aYjq g^ l‘] <_j]]e]fl, VOCDN K<B@ DIO@IODJI<GGT G@AO =G<IFW @+/ @ APPENDIX E FORM OF BOND COUNSEL’S OPINION V>dgkaf_ ?Yl]W >alq g^ @f[afalYk 3.3 Ngml‘ Qmd[Yf <n]fm] @f[afalYk* >< 70.02+1411 M]8 #/7*/.3*... >alq g^ @f[afalYk >geemfalq AY[adala]k ?aklja[l Ig, / ’@f[afalYk MYf[‘ KmZda[ Dehjgn]e]flk( 0.0/ OYpYZd] Nh][aYd OYp M]^mf\af_ =gf\k GY\a]k Yf\ B]fld]e]f8 R] ‘Yn] Y[l]\ Yk Zgf\ [gmfk]d af [gff][lagf oal‘l‘]akkmYf[] Zq>alqg^ @f[afalYk >geemfalqAY[adala]k ?aklja[l Ig, / ’@f[afalYk MYf[‘( ’l‘] y?aklja[lz(* g^ #/7*/.3*... Y__j]_Yl] hjaf[ahYd Yegmfl g^ >alq g^ @f[afalYk >geemfalq AY[adala]k ?aklja[l Ig, / ’@f[afalYk MYf[‘ KmZda[ Dehjgn]e]flk( 0.0/ OYpYZd] Nh][aYd OYp =gf\k* ’l‘] y=gf\kz(, O‘] =gf\k Yj] akkm]\ hmjkmYfl lg l‘] hjgnakagfk g^ l‘] H]ddg+Mggk >geemfalq AY[adala]k <[l g^ /760* Yk Ye]f\]\* Z]af_ >‘Yhl]j 0,3 ’[gee]f[af_ oal‘ N][lagf 311//( g^ KYjl / g^ ?anakagf 0 g^ Oald] 3 g^ l‘] Bgn]jfe]fl >g\] g^ l‘] NlYl] g^ >Yda^gjfaY ’l‘] y<[lz(* Y j]kgdmlagf Y\ghl]\ Zq l‘] >alq g^ @f[afalYk gf <m_mkl /* 0.0/ ’l‘] yM]kgdmlagfz(* Yf\ Y Aak[Yd <_]fl <_j]]e]fl* \Yl]\ Yk g^ Emf] 01* 0.0/ ’l‘] y<_j]]e]flz(* Z]lo]]f l‘] >alq g^ @f[afalYk Yf\ P,N, =Yfc IYlagfYd <kkg[aYlagf* Yk ^ak[Yd Y_]fl ’l‘] yAak[Yd <_]flz(, R] ‘Yn] ]pYeaf]\ l‘] <[l* l‘] M]kgdmlagf* l‘] <_j]]e]fl Yf\ []jla^a]\ [gha]k g^ l‘] hjg[]]\af_k lYc]f ^gj l‘] akkmYf[] Yf\ kYd] g^ l‘] =gf\k, <k lg im]klagfk g^ ^Y[l o‘a[‘ Yj] eYl]jaYd lg gmj ghafagfk* o] ‘Yn] j]da]\ mhgf l‘] j]hj]k]flYlagfk g^ l‘] >alq [gflYaf]\ af l‘] <_j]]e]fl Yf\ af []jla^a[Yl]k g^ alk Yml‘gjar]\ g^^a[]jk o‘a[‘ ‘Yn]Z]]f\]dan]j]\lgmk^gjl‘]hmjhgk]g^kmhhdqaf_km[‘^Y[lk*oal‘gml‘Ynaf_mf\]jlYc]flgn]ja^ql‘]Y[[mjY[q g^ Yfq km[‘ j]hj]k]flYlagfk Zq af\]h]f\]fl afn]kla_Ylagf, =Yk]\ mhgf km[‘ ]pYeafYlagf* o] Yj] g^ l‘] ghafagf* Yk g^ l‘] \Yl] ‘]j]g^* l‘Yl l‘] hjg[]]\af_k j]^]jj]\ lg YZgn] ‘Yn] Z]]f lYc]f af Y[[gj\Yf[] oal‘ l‘] dYok Yf\ l‘] >gfklalmlagf g^ l‘] NlYl] g^ >Yda^gjfaY* Yf\ l‘Yl l‘] =gf\k* ‘Ynaf_ Z]]f akkm]\ af \mdq Yml‘gjar]\ ^gje Yf\ ]p][ml]\ Zq l‘] hjgh]j g^^a[aYdk Yf\ \]dan]j]\ lg Yf\ hYa\ ^gj Zq l‘] hmj[‘Yk]j l‘]j]g^* Yf\ l‘] <_j]]e]fl [gfklalml] l‘] d]_Yddq nYda\ Yf\ Zaf\af_ gZda_Ylagfk g^ l‘] ?aklja[l ]f^gj[]YZd] af Y[[gj\Yf[] oal‘ l‘]aj l]jek kmZb][l lg l‘] imYda^a[Ylagfk kh][a^a]\ Z]dgo Yf\ l‘] =gf\k* ]p[]hl o‘]j] ^mf\k Yj] gl‘]joak] YnYadYZd]* Yk eYq Z] h]jeall]\ Zq dYo* Yj] hYqYZd]* Yk lg Zgl‘ hjaf[ahYd Yf\ afl]j]kl* kgd]dq ^jge []jlYaf kh][aYd lYp]k lg Z] d]na]\ Yf\ [gdd][l]\ oal‘af l‘] ?aklja[l Yf\ gl‘]j ^mf\k YnYadYZd] l‘]j]^gj ‘]d\ mf\]j l‘] <_j]]e]fl, R] Yj] g^ l‘] ghafagf l‘Yl* mf\]j ]paklaf_ klYlml]k* j]_mdYlagfk* jmdaf_k Yf\ [gmjl \][akagfk* Yf\ Ykkmeaf_ [gehdaYf[] Zq l‘] >alq oal‘ l‘] Y^gj]e]flagf]\ [gn]fYflk* l‘] afl]j]kl gf l‘] =gf\k ak fgl ]p[dm\]\ ^jge _jgkk af[ge] ^gj hmjhgk]k g^ ^]\]jYdaf[ge] lYpYlagf Yf\ ak ]p]ehl ^jgeh]jkgfYd af[ge] lYpYlagf aehgk]\ Zql‘] NlYl] g^ >Yda^gjfaY, O‘] ja_‘lk g^ l‘] gof]jk g^ l‘] =gf\k Yf\ l‘] ]f^gj[]YZadalq g^ l‘] =gf\k Yf\ l‘] <_j]]e]fl eYq Z] kmZb][l lg ZYfcjmhl[q* afkgdn]f[q* egjYlgjame Yf\ gl‘]j kaeadYj dYok Y^^][laf_ [j]\algjk{ ja_‘lk ‘]j]lg^gj] gj ‘]j]Y^l]j ]fY[l]\* Yf\ l‘]aj ]f^gj[]e]fl eYq Z] kmZb][l lg l‘] ]p]j[ak] g^ bm\a[aYd \ak[j]lagf af Y[[gj\Yf[] oal‘ _]f]jYd hjaf[ahd]k g^ ]imalq, M]kh][l^mddq kmZeall]\* VOCDN K<B@ DIO@IODJI<GGT G@AO =G<IFW A+/ A APPENDIX F BOOK-ENTRY ONLY SYSTEM The following description of the procedures and record-keeping of the Depository Trust Company (“DTC”) with respect to beneficial ownership interests in the Bonds, payment of principal, interest and other payments on the Bonds to DTC Participants or Beneficial Owners, confirmation and transfer of beneficial ownership interests in such Bonds and other related transactions by and between DTC, the DTC Participants and the Beneficial Owners is based solely on information provided by DTC. Accordingly, no representations can be made concerning these matters and neither the DTC Participants nor the Beneficial Owners should rely on the following information with respect to such matters, but should instead confirm the same with DTC or the DTC Participants, as the case may be. O‘] ?]hgkalgjq Ojmkl >gehYfq ’y?O>z(* I]o Tgjc* IT* oadd Y[l Yk k][mjala]k \]hgkalgjq ^gj l‘] =gf\k, O‘] =gf\k oadd Z] akkm]\ Yk ^mddq+j]_akl]j]\ k][mjala]k j]_akl]j]\ af l‘] fYe] g^ >]\] % >g, ’?O>{k hYjlf]jk‘ah fgeaf]]( gj km[‘ gl‘]j fYe] Yk eYq Z] j]im]kl]\ Zq Yf Yml‘gjar]\ j]hj]k]flYlan] g^ ?O>, Jf] ^mddq+j]_akl]j]\ []jla^a[Yl] oadd Z] akkm]\ ^gj ]Y[‘ eYlmjalq g^ l‘] =gf\k* ]Y[‘ af l‘] Y__j]_Yl] hjaf[ahYd Yegmfl g^ km[‘ eYlmjalq* Yf\ oadd Z] \]hgkal]\ oal‘ ?O>, ?O>* l‘] ogjd\{k dYj_]kl \]hgkalgjq* ak Y daeal]\+hmjhgk] ljmkl [gehYfq gj_Yfar]\ mf\]j l‘] I]o Tgjc =Yfcaf_ GYo* Y yZYfcaf_ gj_YfarYlagfz oal‘af l‘] e]Yfaf_ g^ l‘] I]o Tgjc =Yfcaf_ GYo* Y e]eZ]j g^ l‘] A]\]jYd M]k]jn] Nqkl]e* Y y[d]Yjaf_ [gjhgjYlagfz oal‘af l‘] e]Yfaf_ g^ l‘] I]o Tgjc Pfa^gje >gee]j[aYd >g\]* Yf\ Y y[d]Yjaf_ Y_]f[qz j]_akl]j]\ hmjkmYfl lg l‘] hjgnakagfk g^ N][lagf /5< g^ l‘] N][mjala]k @p[‘Yf_] <[l g^ /712, ?O> ‘gd\k Yf\ hjgna\]k Ykk]l k]jna[af_ ^gj gn]j 1,3 eaddagf akkm]k g^ P,N, Yf\ fgf+P,N, ]imalq akkm]k* [gjhgjYl] Yf\ emfa[ahYd \]Zl akkm]k* Yf\ egf]q eYjc]l afkljme]flk ^jge gn]j /.. [gmflja]k l‘Yl ?O>{k hYjla[ahYflk ’y?aj][l KYjla[ahYflkz( \]hgkal oal‘ ?O>, ?O> Ydkg ^Y[adalYl]k l‘] hgkl+ljY\] k]lld]e]fl Yegf_ ?aj][l KYjla[ahYflk g^ kYd]k Yf\ gl‘]j k][mjala]k ljYfkY[lagfk af \]hgkal]\ k][mjala]k* l‘jgm_‘ ]d][ljgfa[ [gehml]jar]\ Zggc+]fljq ljYfk^]jk Yf\ hd]\_]k Z]lo]]f ?aj][l KYjla[ahYflk{ Y[[gmflk, O‘ak ]daeafYl]k l‘] f]]\ ^gj h‘qka[Yd egn]e]fl g^ k][mjala]k []jla^a[Yl]k, ?aj][l KYjla[ahYflk af[dm\] Zgl‘ P,N, Yf\ fgf+P,N, k][mjala]k Zjgc]jk Yf\ \]Yd]jk* ZYfck* ljmkl [gehYfa]k* [d]Yjaf_ [gjhgjYlagfk* Yf\ []jlYaf gl‘]j gj_YfarYlagfk, ?O> ak Y o‘gddq+gof]\ kmZka\aYjq g^ O‘] ?]hgkalgjq Ojmkl % >d]Yjaf_ >gjhgjYlagf ’y?O>>z(, ?O>> ak l‘] ‘gd\af_ [gehYfq ^gj ?O>* IYlagfYd N][mjala]k >d]Yjaf_ >gjhgjYlagf* Yf\ Aap]\ Df[ge] >d]Yjaf_ >gjhgjYlagf* Ydd g^ o‘a[‘ Yj] j]_akl]j]\ [d]Yjaf_ Y_]f[a]k, ?O>> ak gof]\ Zq l‘] mk]jk g^ alk j]_mdYl]\ kmZka\aYja]k, <[[]kk lg l‘] ?O> kqkl]e ak Ydkg YnYadYZd] lg gl‘]jk km[‘ Yk Zgl‘ P,N, Yf\ fgf+P,N, k][mjala]k Zjgc]jk Yf\ \]Yd]jk* ZYfck* ljmkl [gehYfa]k* Yf\ [d]Yjaf_ [gjhgjYlagfk l‘Yl [d]Yj l‘jgm_‘ gj eYaflYaf Y [mklg\aYd j]dYlagfk‘ah oal‘ Y ?aj][l KYjla[ahYfl* ]al‘]j \aj][ldq gj af\aj][ldq ’yDf\aj][l KYjla[ahYflkz(, ?O> ‘Yk Z]]f jYl]\ Zq NlYf\Yj\ % Kggj{k Yk <<), O‘] ?O> Mmd]k Yhhda[YZd] lg alk KYjla[ahYflk Yj] gf ^ad] oal‘ l‘] N][mjala]k Yf\ @p[‘Yf_] >geeakkagf, Hgj] af^gjeYlagf YZgml ?O> [Yf Z] ^gmf\ Yl ooo,\l[[,[ge Yf\ ooo,\l[,gj_, Kmj[‘Yk]k g^ =gf\k mf\]j l‘] ?O> kqkl]e emkl Z] eY\] Zq gj l‘jgm_‘ ?aj][l KYjla[ahYflk* o‘a[‘ oadd j][]an] Y [j]\al ^gj l‘] =gf\k gf ?O>{k j][gj\k, O‘] gof]jk‘ah afl]j]kl g^ ]Y[‘ Y[lmYd hmj[‘Yk]j g^ ]Y[‘ =gf\ ’y=]f]^a[aYd Jof]jz( ak af lmjf lg Z] j][gj\]\ gf l‘] ?aj][l Yf\ Df\aj][l KYjla[ahYflk{ j][gj\k, =]f]^a[aYd Jof]jk oadd fgl j][]an] ojall]f [gf^ajeYlagf ^jge ?O> g^ l‘]aj hmj[‘Yk], =]f]^a[aYd Jof]jk Yj]* ‘go]n]j* ]ph][l]\ lg j][]an] ojall]f [gf^ajeYlagfk hjgna\af_ \]lYadk g^ l‘] ljYfkY[lagf* Yk o]dd Yk h]jag\a[ klYl]e]flk g^ l‘]aj ‘gd\af_k* ^jge l‘] ?aj][l gj Df\aj][l KYjla[ahYfl l‘jgm_‘ o‘a[‘ l‘] =]f]^a[aYd Jof]j ]fl]j]\ aflg l‘] ljYfkY[lagf, OjYfk^]jk g^ gof]jk‘ah afl]j]klk af l‘] =gf\k Yj] lg Z] Y[[gehdak‘]\ Zq ]flja]k eY\] gf l‘] Zggck g^ ?aj][l Yf\ Df\aj][l KYjla[ahYflk Y[laf_ gf Z]‘Yd^ g^ =]f]^a[aYd Jof]jk, =]f]^a[aYd Jof]jk oadd fgl j][]an] []jla^a[Yl]k j]hj]k]flaf_ l‘]aj gof]jk‘ah afl]j]klk af =gf\k* ]p[]hl af l‘] ]n]fl l‘Yl mk] g^ l‘] Zggc+]fljq kqkl]e ^gj l‘] =gf\k ak \ak[gflafm]\, Og ^Y[adalYl] kmZk]im]fl ljYfk^]jk* Ydd =gf\k \]hgkal]\ Zq ?aj][l KYjla[ahYflk oal‘ ?O> Yj] j]_akl]j]\ af l‘] fYe] g^ ?O>{k hYjlf]jk‘ah fgeaf]]* >]\] % >g,* gj km[‘ gl‘]j fYe] Yk eYq Z] j]im]kl]\ Zq Yf Yml‘gjar]\ j]hj]k]flYlan] g^ ?O>, O‘] \]hgkal g^ =gf\k oal‘ ?O> Yf\ l‘]aj j]_akljYlagf af l‘] fYe] g^ >]\] % >g, gj km[‘ A+0 gl‘]j ?O> fgeaf]] \g fgl ]^^][l Yfq [‘Yf_] af Z]f]^a[aYd gof]jk‘ah, ?O> ‘Yk fg cfgod]\_] g^ l‘] Y[lmYd =]f]^a[aYd Jof]jk g^ l‘] =gf\k9 ?O>{k j][gj\k j]^d][l gfdq l‘] a\]flalq g^ l‘] ?aj][l KYjla[ahYflk lg o‘gk] Y[[gmflk km[‘ =gf\k Yj] [j]\al]\* o‘a[‘ eYq gj eYq fgl Z] l‘] =]f]^a[aYd Jof]jk, O‘] ?aj][l Yf\ Df\aj][l KYjla[ahYflk oadd j]eYaf j]khgfkaZd] ^gj c]]haf_ Y[[gmfl g^ l‘]aj ‘gd\af_k gf Z]‘Yd^ g^ l‘]aj [mklge]jk, >gfn]qYf[] g^ fgla[]k Yf\ gl‘]j [geemfa[Ylagfk Zq ?O> lg ?aj][l KYjla[ahYflk* Zq ?aj][l KYjla[ahYflk lg Df\aj][l KYjla[ahYflk* Yf\Zq?aj][l KYjla[ahYflk Yf\ Df\aj][l KYjla[ahYflklg =]f]^a[aYd Jof]jk oadd Z] _gn]jf]\ Zq YjjYf_]e]flk Yegf_ l‘]e* kmZb][l lg Yfq klYlmlgjq gj j]_mdYlgjq j]imaj]e]flk Yk eYq Z] af ]^^][l ^jge lae] lg lae], =]f]^a[aYd Jof]jk g^ =gf\k eYq oak‘ lg lYc] []jlYaf kl]hk lg Ym_e]fl l‘] ljYfkeakkagf lg l‘]e g^ fgla[]k g^ ka_fa^a[Yfl ]n]flk oal‘ j]kh][l lg l‘] =gf\k* km[‘ Yk j]\]ehlagfk* l]f\]jk* \]^Ymdlk* Yf\ hjghgk]\ Ye]f\e]flk lg l‘] =gf\ \g[me]flk, Agj ]pYehd]* =]f]^a[aYd Jof]jk g^ =gf\k eYq oak‘ lg Yk[]jlYaf l‘Yl l‘] fgeaf]]‘gd\af_ l‘] =gf\k ^gj l‘]aj Z]f]^al ‘Yk Y_j]]\ lg gZlYaf Yf\ ljYfkeal fgla[]k lg =]f]^a[aYd Jof]jk, Df l‘] Ydl]jfYlan]* =]f]^a[aYdJof]jkeYqoak‘lghjgna\]l‘]ajfYe]k Yf\Y\\j]kk]klgl‘]j]_akljYj Yf\j]im]kll‘Yl [gha]kg^fgla[]k Z] hjgna\]\ \aj][ldq lg l‘]e, M]\]ehlagffgla[]koaddZ]k]fllg?O>,D^d]kkl‘YfYddg^l‘]=gf\koal‘afYeYlmjalqYj]Z]af_j]\]]e]\* ?O>{k hjY[la[] ak lg \]l]jeaf] Zq dgl l‘] Yegmfl g^ l‘] afl]j]kl g^ ]Y[‘ ?aj][l KYjla[ahYfl af km[‘ eYlmjalq lg Z] j]\]]e]\, I]al‘]j ?O> fgj >]\] % >g, ’fgj Yfq gl‘]j ?O> fgeaf]]( oadd [gfk]fl gj ngl] oal‘ j]kh][l lg =gf\k mfd]kk Yml‘gjar]\ Zq Y ?aj][l KYjla[ahYfl af Y[[gj\Yf[] oal‘ ?O>{k Kjg[]\mj]k, Pf\]j alk mkmYd hjg[]\mj]k* ?O> eYadk Yf JefaZmk Kjgpq lgl‘] ?aklja[l Yk kggf Yk hgkkaZd] Y^l]j l‘] j][gj\ \Yl],O‘] JefaZmk Kjgpq Ykka_fk >]\] %>g,{k[gfk]flaf_gj nglaf_ja_‘lklgl‘gk]?aj][l KYjla[ahYflklgo‘gk]Y[[gmflk=gf\kYj][j]\al]\gfl‘]j][gj\ \Yl] ’a\]fla^a]\ af Y daklaf_ YllY[‘]\ lg l‘] JefaZmk Kjgpq(, M]\]ehlagf hjg[]]\k* \akljaZmlagfk* Yf\ \ana\]f\ hYqe]flk gf l‘] =gf\k oadd Z] eY\] lg >]\] % >g,* gj km[‘ gl‘]j fgeaf]] Yk eYq Z] j]im]kl]\ Zq Yf Yml‘gjar]\ j]hj]k]flYlan] g^ ?O>, ?O>{k hjY[la[] ak lg [j]\al ?aj][l KYjla[ahYflk{ Y[[gmflk mhgf ?O>{k j][]ahl g^ ^mf\k Yf\ [gjj]khgf\af_ \]lYad]\ af^gjeYlagf ^jge l‘] ?aklja[l gj l‘] Aak[Yd <_]fl* gf l‘] hYqe]fl \Yl] af Y[[gj\Yf[] oal‘ l‘]aj j]kh][lan] ‘gd\af_k k‘gof gf ?O>{k j][gj\k, KYqe]flk Zq KYjla[ahYflk lg =]f]^a[aYd Jof]jk oadd Z] _gn]jf]\ Zq klYf\af_ afkljm[lagfk Yf\ [mklgeYjq hjY[la[]k* Yk ak l‘] [Yk] oal‘ k][mjala]k ‘]d\ ^gj l‘] Y[[gmflk g^ [mklge]jk af Z]Yj]j ^gje gj j]_akl]j]\ af yklj]]l fYe]*z Yf\ oadd Z] l‘] j]khgfkaZadalq g^ km[‘ KYjla[ahYflk Yf\ fgl g^ ?O> fgj alk fgeaf]]* l‘] Aak[Yd <_]fl* gj l‘] ?aklja[l* kmZb][l lg Yfq klYlmlgjq gj j]_mdYlgjq j]imaj]e]flk Yk eYq Z] af ]^^][l ^jge lae] lg lae], KYqe]fl g^ j]\]ehlagf hjg[]]\k* \akljaZmlagfk* Yf\ \ana\]f\ hYqe]flk lg >]\] % >g, ’gj km[‘ gl‘]j fgeaf]] Yk eYq Z] j]im]kl]\ Zq Yf Yml‘gjar]\ j]hj]k]flYlan] g^ ?O>( ak l‘] j]khgfkaZadalq g^ l‘] Aak[Yd <_]fl* \akZmjk]e]fl g^ km[‘ hYqe]flk lg ?aj][l KYjla[ahYflk oadd Z] l‘] j]khgfkaZadalq g^ ?O>* Yf\ \akZmjk]e]fl g^ km[‘ hYqe]flk lg l‘] =]f]^a[aYd Jof]jk oadd Z] l‘] j]khgfkaZadalq g^ ?aj][l Yf\ Df\aj][l KYjla[ahYflk, < =]f]^a[aYd Jof]j k‘Ydd _an] fgla[] lg ]d][l lg ‘Yn] alk =gf\k hmj[‘Yk]\ gj l]f\]j]\* l‘jgm_‘ alk KYjla[ahYfl*lgl‘]Aak[Yd<_]fl*Yf\k‘Ydd]^^][l\]dan]jqg^km[‘=gf\kZq[Ymkaf_l‘]?aj][lKYjla[ahYfllgljYfk^]j l‘] KYjla[ahYfl{k afl]j]kl af l‘] =gf\k* gf ?O>{k j][gj\k* lg l‘] Aak[Yd <_]fl, O‘] j]imaj]e]fl ^gj h‘qka[Yd \]dan]jq g^ =gf\k af [gff][lagf oal‘ Yf ghlagfYd l]f\]j gj Y eYf\Ylgjq hmj[‘Yk] oadd Z] \]]e]\ kYlak^a]\ o‘]f l‘] gof]jk‘ahja_‘lkaf l‘]=gf\k Yj] ljYfk^]jj]\ Zq?aj][l KYjla[ahYflk gf ?O>{k j][gj\k Yf\^gddgo]\ ZqY Zggc+ ]fljq [j]\al g^ l]f\]j]\ =gf\k lg l‘] Aak[Yd <_]fl{k ?O> Y[[gmfl, ?O> eYq \ak[gflafm] hjgna\af_ alk k]jna[]k Yk \]hgkalgjq oal‘ j]kh][l lg l‘] =gf\k Yl Yfq lae] Zq _anaf_ j]YkgfYZd] fgla[] lg l‘] j]kh][lan] ?aklja[l gj l‘] Aak[Yd <_]fl, Pf\]j km[‘ [aj[meklYf[]k* af l‘] ]n]fl l‘Yl Y km[[]kkgj \]hgkalgjq ak fgl Yhhgafl]\* h‘qka[Yd =gf\k Yj] j]imaj]\ lg Z] hjafl]\ Yf\ \]dan]j]\, O‘] RYl]j ?aklja[l eYq \][a\] lg \ak[gflafm] mk] g^ l‘] kqkl]e g^ Zggc+]fljq ljYfk^]jk l‘jgm_‘ ?O> ’gj Y km[[]kkgj k][mjala]k \]hgkalgjq(, Df l‘Yl ]n]fl* h‘qka[Yd =gf\k oadd Z] hjafl]\ Yf\ \]dan]j]\, A+1 O‘] af^gjeYlagf af l‘ak k][lagf [gf[]jfaf_ ?O> Yf\ ?O>{k Zggc+]fljq kqkl]e ‘Yk Z]]f gZlYaf]\ ^jge kgmj[]k l‘Yl l‘] RYl]j ?aklja[l Z]da]n]k lg Z] j]daYZd]* Zml lYc] fg j]khgfkaZadalq ^gj l‘] Y[[mjY[q g^ km[‘ af^gjeYlagf, NJ GJIB <N >@?@ % >J, DN OC@ M@BDNO@M@? JRI@M JA OC@ =JI?N* <N IJHDI@@ JA ?O>* M@A@M@I>@N C@M@DI OJ < y=JI? JRI@Mz JM yJRI@M JA =JI?Nz H@@?@ % >J,* <N <AJM@N<D?* <I? NC<GG IJO H@D<G JRI@MN JA OC@ =JI?N, O‘] RYl]j ?aklja[l [Yffgl Yf\ \g fgl _an] Yfq YkkmjYf[]k l‘Yl ?O>* ?O> KYjla[ahYflk gj gl‘]jk oadd \akljaZml] hYqe]flk g^ hjaf[ahYd* afl]j]kl gj hj]eame oal‘ j]kh][l lg l‘] =gf\k hYa\ lg ?O> gj alk fgeaf]] Yk l‘] j]_akl]j]\ gof]j* gj oadd \akljaZml] Yfq j]\]ehlagf fgla[]k gj gl‘]j fgla[]k* lg l‘] =]f]^a[aYd Jof]jk* gj l‘Yl l‘]q oadd \g kg gf Y lae]dq ZYkak gj oadd k]jn] Yf\ Y[l af l‘] eYff]j \]k[jaZ]\ af l‘ak J^^a[aYd NlYl]e]fl, O‘] RYl]j ?aklja[l ak fgl j]khgfkaZd] gj daYZd] ^gj l‘] ^Yadmj] g^ ?O> gj Yfq ?O> KYjla[ahYfl lg eYc] Yfq hYqe]fl gj _an] Yfq fgla[] lg Y =]f]^a[aYd Jof]j oal‘ j]kh][l lg l‘] =gf\k gj Yf ]jjgj gj \]dYq j]dYlaf_ l‘]j]lg, O‘] ^gj]_gaf_ \]k[jahlagf g^ l‘] hjg[]\mj]k Yf\ j][gj\+c]]haf_ oal‘ j]kh][l lg Z]f]^a[aYd gof]jk‘ah afl]j]klk af l‘] =gf\k* hYqe]fl g^ hjaf[ahYd* afl]j]kl Yf\ gl‘]j hYqe]flk gf l‘] =gf\k lg ?O> KYjla[ahYflk gj =]f]^a[aYd Jof]jk* [gf^ajeYlagf Yf\ ljYfk^]j g^ Z]f]^a[aYd gof]jk‘ah afl]j]klk af km[‘ =gf\k Yf\ gl‘]j j]dYl]\ ljYfkY[lagfk Zq Yf\ Z]lo]]f ?O>* l‘] ?O> KYjla[ahYflk Yf\ l‘] =]f]^a[aYd Jof]jk ak ZYk]\ kgd]dq gf af^gjeYlagf hjgna\]\ Zq ?O>, <[[gj\af_dq* fg j]hj]k]flYlagfk [Yf Z] eY\] [gf[]jfaf_ l‘]k] eYll]jk Yf\ f]al‘]j l‘] ?O> KYjla[ahYflk fgj l‘] =]f]^a[aYd Jof]jk k‘gmd\ j]dq gf l‘] ^gj]_gaf_ af^gjeYlagf oal‘ j]kh][l lg km[‘ eYll]jk* Zml k‘gmd\ afkl]Y\ [gf^aje l‘] kYe] oal‘ ?O> gj l‘] ?O> KYjla[ahYflk* Yk YhhjghjaYl], VOCDN K<B@ DIO@IODJI<GGT G@AO =G<IFW APPENDIX G SPECIMEN MUNICIPAL BOND INSURANCE POLICY AssURED MUNICIPAL BOND GUARANTY MUNICIPAL INSURANCE POLICY ISSUER: "P licy No- -N BONDS: $in aggregate principal amount of Eft Date: Pre $ ASSURED GUARANTY MUNICIPAL CORP_ ("AGM"'), fae consic{�ration eived, hereby UNCONDITIONALLY AND IRREVOCABLY agrees to pay to the trustee(the"Trustee")or paying ent(the "Paysng Agenit")(as set forth in the documentation providing for the uance ofand securing thr nds) �or the Bonds,for the benefit of the Owners or,at the election of AGM,directly to each Owner,subject only to the terms of this Policy(which includes each endorsement hereto), that portion of the principal of and interest on the Bonds that shall become Due for Payment bur.shall be unpaid by reason of Nonpayment by the tssuor. On the later of the day on whch such &d iNerest become Due for Payment or the Business Day next following the Business Da n wrhi shall have received Notice of Nonpayment, AGM will disburse to or for the beneft of e nor of at the face amount of principal of and interest on the Bond that F then Due for Payme t unpalr�by reason of Nonpayment by the Issuer,but only upon receipt by AGM, in a form r bly actory t��it,of(a)evidence of the Ow er's right to receive payment of the principal inter then for Payment and (b) evidence, including any appropriate instruments of assignment, that all of t ner's Jights with respect to payment of such principal or interest that is Cue for Payment shall thereu m AGM. A Notice of Nonpayment will be deemed received on a given Basins Day rf t is eiv rior to 1:00 p.m. (Near York ti )on such Business Day; othe wise,,a6�ri.I. be�5eemed receiv the next Business Day. If any Notice of Nonpayment received by AGM is incomplete, it shaI a deemed not to have been received by AGM for purposes of the prec®'dirg ;entente and'Y� M sh promptly so advise the Trustee, Paying Agent or Owner, as approp who may submit an amen ed Notice of Nonpayment. Upon disbursement in respect of a Bond,AGM sha,!becem3th owr er oaf the Bond,any appurtenant coupon to the Bond or right to receipt of payment of principal of cr into st on the Bond and sham be fully subrogated to the rights of the Owner,including the Owner'p ri' t to re payments under the Band,to the extent of any payment by AGM hereunder. Payment by to Trustee or Paying Agent for the beneft of the Owners shall,to the a ent thereof,discharge the o n of AGM underthis Policy.Except to the extent expressly modified by an endorsement hereto,the following terms shaDl have t meanie'Is specified for all purposes of this Policy. "Business Day" means any day other than (a)a Saturday or Sunday or(bhON@y on which banking institutions in the State of New York or the Insurer's Fiscal Agent are a-uthorizcliff or required by law or executive order to remain closed. "Due for Payment" means(a)when referrng to the principal of a Bond,payable on the stated maturity date thereof or the date on which the seine dual have been duly,called for mandatory sinking fund redemption and does not refer to any eartee*te on,yvhich payment is due by reason of call for redemption(other than by mandatory sinking fund redemptionj8acceleration or other advancement of maturity unless ACM shall elect, sn its sole discretion,to pay such principal due upon such acceleration together with any accrued interest to the date of acceleration and (b)when referring to interest on a Bond, payable on the stated date for payment of interest. "Nonpayment" means, in respect of a Bond,the failure of the Issuer to have provided sufficient funds to the Trustee or, t there is no Trustee,to the Paying Agent for payment in full of all principal and interest that is Due for Payment on such Bond. "Nonpayment"shad also include,in respect of a Bond,any payment of prindpad or interest that is Due for Payment made to an Owner by or on behaF of the Issuer which has been recovered from such Owmr pursuant to the G-I Page 2 of 2 Policy No.-N United States Bankruptcy Code by a trustee in bankruptcy in accordance with a final,nonappealable order of a court having competent jurisdiction. "Notice" means telephonic or telecopied notice, subsequently confirmed in a signed writing,or written notice by registered or certified mail,from an Owner,the Trustee or the Paying Agent to AGM which notice shall specify(a)the person or entity making the claim,(b)the Policy Number,(c)the claimed amount and(d)the date such claimed amount became Due for Payment. "Owner" means,in respect of a Bond,the person or entity who,at the time of Nonpayment,is entitled under the terms of such Bond to payment thereof,except that"Owner'shall not include the Issuer r any person or entity whose direct or indirect obligation constitutes the underlying security for the Bonds. AGM may appoint a fiscal agent(the "Insurer's Fiscal Agent")for purposes o is Policy by giving written notice to the Trustee and the Paying Agent specifying the name and notice address of the Insurer's Fiscal Agent. From and after the date of receipt of such notice by the Trustee and the Paying Agent, (a) copies of all notices required to be delivered to AGM pu�jlant to this Policy shall be simultaneously delivered to the Insurer's Fiscal Agent and to AGM and shall not be deemed receivedygil received by both and(b)all payments required to be made by AGM u r this Policy may be made directly by AGM or by the Insurer's Fiscal Agent on behalf of AGM. The Insurers Fiscal Agent is the agent of AGM only and the Insurer's Fiscal Agent shall in no event be liable to an wner for any act of the Insurers Fiscal Agent or any failure of AGM to deposit or cause to be depos sufficient fypds to ma a payments due under this Policy. To the fullest extent permitted by applicable law,AG grees not to asse t,a d hereby waives, only for the benefit of each Owner,all rights(whether by counte laim,setoff or otherwise)and defenses (including, without limitation, the defense of fraud), w ether a uired by subtogation, assignment or otherwise,to the extent that such rights and de9f6ses m available to AGilM to avoid payment of its obligations under this Policy in accordance wit a express provisions of this�licy. This Policy sets forth it a un ing of AGM, and shall not be modified, aRered or affected by any other agreement or ,inc any modificationoramendmentthereto. Except to the extent expressly modified by aorse nt he (a)any premium paid in respect of this Policy is nonrefundable for any reason whatr,including pa t,orpFovision being made for payment,of the Bonds prior to maturity and (b)tlicy may not be ncAed or revoked. THIS POLICY IS NOT COVERED BY THE PROPEJZTY/CLTY INSURAICE SECURITY FUND SPECIFIED IN ARTICLE 76 OF THE NEW YORK INS ANCE In witnes hereof,ASSURED GUARANTY MUNICIPAL CORP.has caused this Policy to be executed on its behany its Authorized OfficeN A0 ASSURED GUARANTY MUNICIPAL CORP. ' BY Authorized Officer A subsidiary of Assured Guaranty Municipal Holdings Inc. 1633 Broadway,New York,N.Y. 10019 (212)974-0100 Form 500 NY(5/90) G-2 CITY OF ENCINITAS • COMMUNITY FACILITIES DISTRICT NO. 1 (ENCINITAS RANCH PUBLIC IMPROVEMENTS)2021 TAXABLE SPECIAL TAX REFUNDING BONDS