FISCAL AGENT AGREEMENT

Transcription

1 JH:SRF:JMG:brf AGENDA DRAFT 4/06/2016 FISCAL AGENT AGREEMENT Dated as of May 1, 2016 by and between the MT. DIABLO UNIFIED SCHOOL DISTRICT and U.S. BANK NATIONAL ASSOCIATION as Fiscal Agent Relating to: $ Mt. Diablo Unified School District Community Facilities District No. 1 Series 2016 Special Tax Refunding Bonds

2 TABLE OF CONTENTS ARTICLE I STATUTORY AUTHORITY AND DEFINITIONS Section Authority for this Agreement... 3 Section Agreement for Benefit of Owners... 3 Section Definitions... 3 ARTICLE II THE BONDS Section Principal Amount; Designation Section Terms of the Bonds Section No Redemption Section Form of Bonds Section Execution and Authentication Section Transfer of Bonds Section Exchange of Bonds Section Bond Register Section Temporary Bonds Section Mutilated, Lost, Destroyed or Stolen Bonds Section Limited Obligation Section No Acceleration Section Book-Entry System Section Additional Bonds Only for Refunding ARTICLE III ISSUANCE OF BONDS Section Issuance and Delivery of Bonds Section Pledge of Special Taxes Section Validity of Bonds ARTICLE IV FUNDS AND ACCOUNTS Section Deposits of Bond Proceeds Section Reserved Section Costs of Issuance Fund Section Reserve Fund Section Bond Fund Section Special Tax Fund Section Administrative Expense Fund ARTICLE V OTHER COVENANTS OF THE SCHOOL DISTRICT Section Punctual Payment Section Extension of Time for Payment Section Against Encumbrances Section Books and Records Section Protection of Security and Rights of Owners Section Reserved Section Collection of Special Taxes Section Covenant to Foreclose Section Further Assurances Section Tax Covenants Page -i-

3 Section Continuing Disclosure to Owners Section Reduction of Special Taxes Section Limits on Special Tax Waivers and Bond Tenders Section Modifications to the Special Tax Formula ARTICLE VI INVESTMENTS Section Deposit and Investment of Moneys in Funds Section Valuation and Disposition of Investments ARTICLE VII THE FISCAL AGENT Section Appointment of Fiscal Agent Section Liability of Fiscal Agent Section No Duty Section Information Section Notice to Fiscal Agent Section Compensation, Indemnification ARTICLE VIII MODIFICATION OR AMENDMENT OF THIS AGREEMENT Section Amendments Permitted Section Owners; Meetings Section Procedure for Amendment with Written Consent of Owners Section Disqualified Bonds Section Effect of Supplemental Agreement Section Endorsement or Replacement of Bonds Issued after Amendments Section Amendatory Endorsement of Bonds ARTICLE IX MISCELLANEOUS Section Benefits of Agreement Limited to Parties Section Successor is Deemed Included In All References to Predecessor Section Discharge of Agreement Section Execution of Documents and Proof of Ownership by Owners Section Waiver of Personal Liability Section Notices to and Demands on District and Fiscal Agent Section State Reporting Requirements Section Partial Invalidity Section Unclaimed Moneys Section Applicable Law Section Conflict with Act Section Conclusive Evidence of Regularity Section 9.13 Payment on Business Day Section Liability of District Section Employment of Agents by District Section Counterparts Exhibit A Exhibit B Exhibit C Form of Bond Costs of Issuance Payment Request Administrative Expense Payment Request -ii-

4 FISCAL AGENT AGREEMENT $ Mt. Diablo Unified School District Community Facilities District No. 1 Series 2016 Special Tax Refunding Bonds THIS FISCAL AGENT AGREEMENT (this Agreement ) is made and entered into and dated as of May 1, 2016, by and between the Mt. Diablo Unified School District (the School District ), on behalf of itself and the Mt. Diablo Unified School District Community Facilities District No. 1 (the Community Facilities District ), and U.S. Bank National Association, a national banking association duly organized and existing under the laws of the United States of America, as fiscal agent (the Fiscal Agent ). RECITALS A. The Board of Education (the Board ) of the Mt. Diablo Unified School District (the School District ), acting as legislative body of the Community Facilities District, has formed the Community Facilities District under the Mello-Roos Community Facilities Act of 1982, as amended (Section 53311, et seq. of the California Government Code) (the Act ) and its resolutions determining and deciding to reconfirm the establishment of the Community Facilities District originally adopted on January 17, 1989, as subsequently reconfirmed and amended (collectively, the Resolutions of Formation ). B. The Board, as the legislative body of the Community Facilities District, is authorized under the Act to levy special taxes to finance and refinance the costs of publicly owned facilities and to authorize the issuance of bonds secured by said special taxes under the Act. C. Under the Act, the Board has issued the following special tax bonds (collectively, the Prior Bonds ): $15,760,000 Mt. Diablo Unified School District Community Facilities District No. 1 Series 2005 Special Tax Revenue and Refunding Bonds (the 2005 Bonds ), issued under Resolution No. 1: adopted on August 7, 1990, as subsequently supplemented and amended (the Original Resolution ), as further supplemented by Resolution No. 04/05-48 adopted on May 10, 2005 (the Fifth Supplemental Resolution ), and $29,995,000 Mt. Diablo Unified School District Community Facilities District No. 1 Series 2006 Special Tax Refunding Bonds (the 2006 Bonds ), issued under Resolution No. 05/06-79 adopted on May 23, 2006 (the Sixth Supplemental Resolution and, collectively with the Original Resolution and the Fifth Supplemental Resolution, the Prior Resolution ). E. It is now the intent of the School District and District to issue a series of bonds captioned Mt. Diablo Unified School District Community Facilities District No. 1 Series 2016 Special Tax Refunding Bonds in an aggregate principal amount of $ (the Bonds ) in order to refund and defease the Prior Bonds, provided that such issuance would be in accordance with the Act and this Agreement, and authorized the execution hereof. -1-

5 F. It is in the public interest and for the benefit of the School District and the Community Facilities District that the School District enter into this Agreement to provide for the issuance of the Bonds, the disbursement of proceeds of the Bonds, the disposition of the special taxes securing the Bonds and the administration and payment of the Bonds. G. All things necessary to cause the Bonds, when executed by the School District and issued as in the Act, the Resolution and this Agreement to be legal, valid and binding, and special obligations of the School District in accordance with their terms, and all things necessary to cause the creation, authorization, execution and delivery of this Agreement and the creation, authorization, execution and issuance of the Bonds, subject to the terms hereof, have in all respects been duly authorized. NOW, THEREFORE, IN CONSIDERATION of the covenants and provisions herein set forth and for other valuable consideration the receipt and sufficiency of which are hereby acknowledged, the parties hereto do hereby agree as follows: -2-

6 ARTICLE I STATUTORY AUTHORITY AND DEFINITIONS Section Authority for this Agreement. This Agreement is entered into pursuant to the provisions of the Act and the Resolution. Section Agreement for Benefit of Owners. The provisions, covenants and agreements herein set forth to be performed by or on behalf of the School District are for the equal benefit, protection and security of the Owners. All of the Bonds, without regard to the time or times of their issuance or maturity, will be of equal rank without preference, priority or distinction of any of the Bonds over any other thereof, except as expressly provided in or permitted by this Agreement. The Fiscal Agent may become the owner of any of the Bonds in its own or any other capacity with the same rights it would have if it were not Fiscal Agent. Section Definitions. Unless the context otherwise requires, for all purposes of this Agreement, of any Supplemental Agreement, and of any certificate, opinion or other document herein mentioned, the terms defined in this Section 1.03 have the meanings herein specified. All references herein to Articles, Sections and other subdivisions are to the corresponding Articles, Sections or subdivisions of this Agreement, and the words herein, hereof, hereunder and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section or subdivision hereof. Act means the Mello-Roos Community Facilities Act of 1982, as amended, being Sections et seq. of the California Government Code. Administrative Expenses means the actual or reasonably estimated costs incurred by the School District directly related to the administration of the Community Facilities District and the Special Taxes, including without limitation the following: (A) the costs of computing the Special Taxes and of preparing the annual Special Tax collection schedules (whether by employees of or consultants employed by the School District); (B) otherwise); (C) the costs of collecting the Special Taxes (whether by the County or the costs of remitting the Special Taxes to the Fiscal Agent for the Bonds; (D) the fees and expenses of the Fiscal Agent (including its legal counsel) in the discharge of the duties required of it under this Agreement; (E) the costs incurred by the School District in complying with the disclosure requirements of applicable federal and state securities laws, California Government Code Section , et seq., the Continuing Disclosure Certificate, the Act, and this Agreement, including those related to public inquiries regarding the Special Tax; (F) Special Tax; the costs of the School District or its designee related to any appeal of the -3-

7 (G) any amounts required to be rebated to the federal government in order for the School District to comply with Section 5.10; (H) an allocable share of the salaries of the School District staff directly relating to all of the foregoing; (I) amounts advanced by the School District for Administrative Expenses or any other administrative purposes of the Community Facilities District; and (J) the costs of commencing and pursuing to completion any foreclosure action arising from delinquent Special Taxes. Administrative Expense Fund means the fund by that name established by Section 4.07(A) hereof. Administrative Expense Requirement means, for Fiscal Year , $69,931.40, and thereafter, an amount equal to the Administrative Expense Requirement for the prior Fiscal Year increased by %. Agreement means this Fiscal Agent Agreement, as it may be amended or supplemented from time to time by any Supplemental Agreement adopted pursuant to the provisions hereof. Annual Debt Service means, for each Bond Year, the sum of (A) the interest due on the Outstanding Bonds in such Bond Year, assuming that the Outstanding Bonds are retired as scheduled, and (B) the principal amount of the Outstanding Bonds due in such Bond Year. Auditor means the auditor-controller of the County. Authorized Officer means the Superintendent, the Director of Fiscal Services, the General Counsel, or any other officer or employee authorized by the Board or by an Authorized Officer to undertake the action referred to in this Agreement as required to be undertaken by an Authorized Officer. Board means the Board of Education of the School District, acting as legislative body of the Community Facilities District. Bond Counsel means Jones Hall, A Professional Law Corporation, or any attorney or firm of attorneys selected by the School District with expertise in rendering opinions as to the legality and tax-exempt status of securities issued by public entities. Bond Fund means the fund by that name established by Section 4.05(A). Bond Register means the books for the registration and transfer of Bonds maintained by the Fiscal Agent under Section

8 Bond Year means the one-year period beginning on August 2nd in each year and ending on August 1st in the following year, except that the first Bond Year will begin on the Closing Date and end on August 1, Bonds means Mt. Diablo Unified School District Community Facilities District No. 1 Series 2016 Special Tax Refunding Bonds. Business Day means any day other than (i) a Saturday or a Sunday, or (ii) a day on which banking institutions in California, the state in which the Fiscal Agent has a corporate trust office are authorized or obligated by law or executive order to be closed. CDIAC means the California Debt and Investment Advisory Commission of the office of the State Treasurer of the State of California or any successor agency or bureau thereto. Closing Date means, 2016, being the date upon which there is delivery of the Bonds in exchange for the amount representing the purchase price of the Bonds by the Original Purchaser. Code means the Internal Revenue Code of 1986 as in effect on the date of issuance of the Bonds or (except as otherwise referenced herein) as it may be amended to apply to obligations issued on the date of issuance of the Bonds, together with applicable temporary and final regulations promulgated, and applicable official public guidance published, under the Code. Community Facilities District means the Mt. Diablo Unified School District Community Facilities District No. 1, formed by the School District under the Act and the Resolutions of Formation. Community Facilities District Account means the account by that name within the Special Tax Fund established by Section 4.06(A). Continuing Disclosure Certificate means that certain Continuing Disclosure Certificate executed by the School District and acknowledged and consented to by Dale Scott & Company, as dissemination agent, dated the Closing Date, as originally executed and as it may be amended from time to time in accordance with the terms thereof. Costs of Issuance means items of expense payable or reimbursable directly or indirectly by the School District and related to the authorization, sale and issuance of the Bonds, which include, without limitation, printing costs, costs of reproducing and binding documents, closing costs, filing and recording fees, initial fees and charges of the Fiscal Agent including its first annual administration fee and fees and expenses of its counsel, expenses incurred by the School District in connection with the issuance of the Bonds, special tax consultant fees and expenses, bond underwriter s discount, legal fees and charges, including bond counsel, disclosure counsel, financial consultants fees, charges for execution, transportation and safekeeping of the Bonds and other costs, charges and fees in connection with the foregoing. Costs of Issuance Fund means the fund by that name established by Section 4.03(A). County means the County of Contra Costa, California. -5-

9 Debt Service means the scheduled amount of interest and amortization of principal payable by reason of Section 2.02(D) on the Bonds during the period of computation, excluding amounts scheduled during such period which relate to principal which has been retired before the beginning of such period. Depository means (a) initially, DTC, and (b) any other Securities Depository acting as Depository pursuant to Section DTC means The Depository Trust Company, New York, New York, and its successors and assigns. Escrow Agent means U.S. Bank National Association, acting in its capacity as escrow agent under the Escrow Agreement. Escrow Agreement means the Escrow Agreement dated as of May 1, 2016, by and between the School District and the Escrow Agent. Escrow Fund means the fund by that name established under the Escrow Agreement. Fair Market Value means the price at which a willing buyer would purchase the investment from a willing seller in a bona fide, arm's length transaction (determined as of the date the contract to purchase or sell the investment becomes binding) if the investment is traded on an established securities market (within the meaning of section 1273 of the Code) and, otherwise, the term "Fair Market Value" means the acquisition price in a bona fide arm's length transaction (as referenced above), if (A) the investment is a certificate of deposit that is acquired in accordance with applicable regulations under the Code, (B) the investment is an agreement with specifically negotiated withdrawal or reinvestment provisions and a specifically negotiated interest rate (for example, a guaranteed investment contract, a forward supply contract or other investment agreement) that is acquired in accordance with applicable regulations under the Code, (C) the investment is a United States Treasury Security--State and Local Government Series that is acquired in accordance with applicable regulations of the United States Bureau of Public Debt, or (D) any commingled investment fund in which the School District and related parties do not own more than a 10% beneficial interest therein if the return paid by the fund is without regard to the source of the investment. To the extent required by the applicable regulations under the Code, the term investment will include a hedge. Federal Securities means (A) any direct general obligations of the United States of America (including obligations issued or held in book entry form on the books of the Department of the Treasury of the United States of America), for which the full faith and credit of the United States of America are pledged; and -6-

10 (B) obligations of any agency, department or instrumentality of the United States of America, the timely payment of principal and interest on which are fully, unconditionally and directly or indirectly secured or guaranteed by the full faith and credit of the United States of America. Fiscal Agent means U.S. Bank National Association appointed by the School District and acting as an independent fiscal agent with the duties and powers herein provided, its successors and assigns, and any other corporation or association which may at any time be substituted in its place, as provided in Section Fiscal Year means the twelve-month period extending from July 1 in a calendar year to June 30 of the succeeding year, both dates inclusive. Independent Financial Consultant means any consultant or firm of such consultants appointed by an Authorized Officer, and who, or each of whom: (A) is judged by the Authorized Officer to have experience in matters relating to the issuance and/or administration of bonds under the Act; (B) is in fact independent and not under the domination of the School District; (C) does not have any substantial interest, direct or indirect, with or in the School District, or any owner of real property in the Community Facilities District, or any real property in the Community Facilities District; and (D) is not connected with the School District as an officer or employee of the School District, but who may be regularly retained to make reports to the School District. Information Service means the Electronic Municipal Market Access (EMMA) system maintained by the Municipal Securities Rulemaking Board, accessible at the emma.msrb.org website, and, in accordance with then-current guidelines of the Securities and Exchange Commission, such other services providing information with respect to called bonds as the School District may designate in a Written Request delivered to the Fiscal Agent. Interest Payment Dates means February 1 and August 1 of each year, commencing August 1, Maximum Annual Debt Service means the largest Annual Debt Service for any Bond Year after the calculation is made through the final maturity date of any Outstanding Bonds. Moody s means Moody s Investors Service, and any successor thereto. Net Special Taxes means, after the Administrative Expense Requirement is funded to the Administrative Expense Fund pursuant to Section 4.06(B); the proceeds of the Special Taxes received by the School District; any scheduled payments, interest thereon, collections of any delinquent Special Taxes; and proceeds of the redemption or sale of property sold as a result of foreclosure of the lien of the Special Taxes to the amount of said lien and interest thereon. Net Special Taxes does not include any penalties or costs of collecting delinquent Special Taxes collected in connection with delinquent Special Taxes. -7-

11 Ordinance means any ordinance adopted by the Board as legislative body of the Community Facilities District providing for the levy of the Special Taxes. Original Purchaser means Stifel, Nicolaus & Company, Incorporated, as representative of itself and Brandis Tallman LLC, the first purchasers of the Bonds from the School District. Outstanding, when used as of any particular time with reference to Bonds, means (subject to the provisions of Section 8.04) all Bonds except: (i) Bonds theretofore canceled by the Fiscal Agent or surrendered to the Fiscal Agent for cancellation; (ii) Bonds paid or deemed to have been paid within the meaning of Section 9.03; and (iii) Bonds in lieu of or in substitution for which other Bonds have been authorized, executed, issued and delivered by the School District pursuant to this Agreement or any Supplemental Agreement. Owner means any person who is the registered owner of any Outstanding Bond. Permitted Investments means, subject to applicable law: (A) Federal Securities. (B) U.S. dollar denominated deposit accounts, federal funds and bankers acceptances with domestic commercial banks, which may include the Fiscal Agent and its affiliates, which have a rating on their short term certificates of deposit on the date of purchase of P-1 by Moody s Investors Service and A-1 or A-1+ by S&P and maturing not more than 360 calendar days after the date of purchase. (Ratings on holding companies are not considered as the rating of the bank); (C) Commercial paper which is rated at the time of purchase in the single highest classification, P-1 by Moody s and A-1+ by S&P and which matures not more than 270 calendar days after the date of purchase; (D) Investments in a money market fund rated AAAm or AAAm-G or better by S&P, including such funds for which the Fiscal Agent, its affiliates or subsidiaries provide investment advisory or other management services or for which the Fiscal Agent or an affiliate of the Fiscal Agent serves as investment administrator, shareholder servicing agent, and/or custodian or subcustodian, notwithstanding that (i) the Fiscal Agent or an affiliate of the Fiscal Agent receives fees from funds for services rendered, (ii) the Fiscal Agent collects fees for services rendered pursuant to this Agreement, which fees are separate from the fees received from such funds, and (iii) services performed for such funds and pursuant to this Agreement may at times duplicate those provided to such funds by the Fiscal Agent or an affiliate of the Fiscal Agent; (E) Pre-refunded Municipal Obligations defined as follows: any bonds or other obligations of any state of the United States of America or of any agency, instrumentality or local governmental unit of any such state which are not callable at the option of the obligor prior to maturity or as to which irrevocable instructions have been given by the obligor to call on the date specified in the notice, and which at the time of purchase are rated, based on an irrevocable escrow account or fund, at rates at least as high as direct and general obligations of the United States of America by either of Moody s or S&P or any successors thereto; or -8-

12 (F) Municipal Obligations rated Aaa/AAA or general obligations of States with a rating of A2/A or higher by both Moody s and S&P. Principal Office means the corporate trust office of the Fiscal Agent set forth in Section 9.06 or such other or additional offices as may be designated by the Fiscal Agent. Prior Bonds means, collectively, the bonds captioned $15,760,000 Mt. Diablo Unified School District Community Facilities District No. 1 Series 2005 Special Tax Revenue and Refunding Bonds, and $29,995,000 Mt. Diablo Unified School District Community Facilities District No. 1 Series 2006 Special Tax Refunding Bonds. Prior Resolution means Resolution No. 1: adopted on August 7, 1990, as subsequently supplemented and amended, as further supplemented by Resolution No. 04/05-48 adopted on May 10, 2005, and by Resolution No. 05/06-79 adopted on May 23, 2006, under which the Prior Bonds were issued. Record Date means the 15th day of the month (whether or not such day is a Business Day) next preceding the month of the applicable Interest Payment Date. Representation Letter means the representation letter between the School District and DTC in effect as of the Closing Date. Reserve Fund means the fund by that name established pursuant to Section 4.04(A) hereof. Reserve Requirement means, as of any date of calculation, an amount equal to the least of (i) the then Maximum Annual Debt Service, (ii) 125% of the then average Annual Debt Service, or (iii) 10% of the initial principal amount of the Bonds issued hereunder. Resolution means Resolution No., adopted by the Board on, 2016, authorizing issuance of the Bonds. Resolutions of Formation means the resolutions of the Board determining and deciding to reconfirm the establishment of the Community Facilities District originally adopted on January 17, 1989, as subsequently reconfirmed and amended. S&P means Standard & Poor s Ratings Service, a Standard & Poor s Financial Services LLC business, and any successor thereto. School District means the Mt. Diablo Unified School District, and any successor thereto. Securities Depositories means The Depository Trust Company, 55 Water Street, 50th Floor, New York, N.Y Attn. Call Notification Department, Fax (212) , and, in accordance with then current guidelines of the Securities and Exchange Commission, -9-

13 such other addresses and such other securities depositories as the School District may designate in a written direction of an Authorized Officer delivered to the Fiscal Agent. Special Tax Formula means the Special Tax Formula for the Community Facilities District, as approved by the qualified voters of the Community Facilities District. Special Tax Fund means the fund by that name established by Section 4.06(A). Special Taxes means the special taxes levied within the Community Facilities District pursuant to the Act, the Special Tax Formula, the Ordinance and this Agreement. Supplemental Agreement means an agreement the execution of which is authorized by a resolution that has been duly adopted by the legislative body of the School District under the Act and which agreement amends or supplements this Agreement, but only if and to the extent that such agreement is specifically authorized under this Agreement. Tax Consultant means any independent financial or tax consultant retained by the School District for the purpose of computing the Special Taxes. -10-

14 ARTICLE II THE BONDS Section Principal Amount; Designation. Bonds in the aggregate principal amount of $ are hereby authorized to be issued by the School District under and subject to the terms of the Resolution and this Agreement, the Act and other applicable laws of the State of California. The Bonds shall be designated as the Mt. Diablo Unified School District Community Facilities District No. 1 Series 2016 Special Tax Refunding Bonds. Section Terms of the Bonds. (A) Form; Denominations. The Bonds shall be issued as fully registered Bonds without coupons in the denomination of $5,000 or any integral multiple in excess thereof. (B) Date of Bonds. The Bonds shall be dated the Closing Date. (C) CUSIP Identification Numbers. CUSIP identification numbers shall be imprinted on the Bonds, but such numbers will not constitute a part of the contract evidenced by the Bonds and any error or omission with respect thereto shall not constitute cause for refusal of any purchaser to accept delivery of and pay for the Bonds. In addition, failure on the part of the School District or the Fiscal Agent to use such CUSIP numbers in any notice to Owners shall not constitute an event of default or any violation of the School District s contract with such Owners and shall not impair the effectiveness of any such notice. (D) Maturities, Interest Rates. The Bonds shall mature and become payable on August 1 in each of the years, and shall bear interest at the rates per annum, as follows: Maturity Date (August 1) Principal Amount Interest Rate (E) Interest. The Bonds shall bear interest at the rates set forth above payable on the Interest Payment Dates in each year. Interest shall be calculated on the basis of a 360-day year composed of twelve 30-day months. Each Bond shall bear interest from the Interest Payment Date next preceding the date of authentication thereof unless -11-

15 (i) it is authenticated on an Interest Payment Date, in which event it shall bear interest from such date of authentication, or (ii) it is authenticated prior to an Interest Payment Date and after the close of business on the Record Date preceding such Interest Payment Date, in which event it shall bear interest from such Interest Payment Date, or (iii) it is authenticated prior to the Record Date preceding the first Interest Payment Date, in which event it shall bear interest from the Closing Date; provided, however, that if at the time of authentication of a Bond, interest is in default thereon, such Bond shall bear interest from the Interest Payment Date to which interest has previously been paid or made available for payment thereon. (F) Method of Payment. Interest on the Bonds (including the final interest payment upon maturity) is payable by check of the Fiscal Agent mailed on the Interest Payment Dates by first class mail to the registered Owner thereof at the registered Owner s address as it appears on the registration books maintained by the Fiscal Agent at the close of business on the Record Date preceding the Interest Payment Date, or by wire transfer (i) to the Depository (so long as the Bonds are in book-entry form pursuant to Section 2.13), or (ii) to an account within the United States made on such Interest Payment Date upon written instructions of any Owner of $1,000,000 or more in aggregate principal amount of Bonds, which instructions shall continue in effect until revoked in writing, or until such Bonds are transferred to a new Owner. The principal of the Bonds is payable by check in lawful money of the United States of America upon surrender of the Bonds at the Principal Office of the Fiscal Agent. All Bonds paid by the Fiscal Agent pursuant to this Section shall be canceled by the Fiscal Agent. The Fiscal Agent shall destroy the canceled Bonds and issue a certificate of destruction thereof to the School District. Section No Redemption. The Bonds are not subject to redemption before maturity. Section Form of Bonds. The Bonds, the form of Fiscal Agent s certificate of authentication and the form of assignment, to appear thereon, shall be substantially in the forms, respectively, set forth in Exhibit A attached hereto and by this reference incorporated herein, with necessary or appropriate variations, omissions and insertions, as permitted or required by this Agreement, the Resolution and the Act. Section Execution and Authentication. The Bonds shall be signed on behalf of the School District by the manual or facsimile signature of the President or Vice-President of the Board and attested by the manual or facsimile signature of the Secretary of the Board in their capacity as officers of the School District. If any one or more of the officers who have signed any of the Bonds cease to be such officer before the Bonds so signed have been authenticated and delivered by the Fiscal Agent (including new bonds delivered pursuant to this provisions hereof with reference to the transfer and exchange of Bonds or to lost, stolen, destroyed or mutilated Bonds), such Bonds shall nevertheless be valid and may be issued as if the person who signed or sealed such Bonds had not ceased to hold such office. Only such Bonds as bear thereon such certificate of authentication duly executed by the Fiscal Agent shall be entitled to any right or benefit under this Agreement, and no Bond shall be -12-

16 valid or obligatory for any purpose until such certificate of authentication has been duly executed by the Fiscal Agent. Section Transfer of Bonds. Any Bond may, in accordance with its terms, be transferred, upon the books required to be kept pursuant to the provisions of Section 2.08 by the person in whose name it is registered, in person or by his duly authorized attorney, upon surrender of such Bond for cancellation, accompanied by delivery of a duly written instrument of transfer in a form acceptable to the Fiscal Agent. The cost for any services rendered or any expenses incurred by the Fiscal Agent in connection with any such transfer shall be paid by the School District. The Fiscal Agent shall collect from the Owner requesting such transfer any tax or other governmental charge required to be paid with respect to such transfer. Whenever any Bond is or Bonds are surrendered for transfer, the School District shall execute and the Fiscal Agent shall authenticate and deliver a new Bond or Bonds, for like aggregate principal amount of authorized denominations. No transfers of Bonds will be required to be made between a Record Date and the succeeding Interest Payment Date. Section Exchange of Bonds. Bonds may be exchanged at the Principal Office of the Fiscal Agent for a like aggregate principal amount of Bonds of authorized denominations and of the same series and maturity. The cost for any services rendered or any expenses incurred by the Fiscal Agent in connection with any such exchange shall be paid by the School District. The Fiscal Agent shall collect from the Owner requesting such exchange any tax or other governmental charge required to be paid with respect to such exchange. No exchanges of Bonds will be required to be made between a Record Date and the succeeding Interest Payment Date. Section Bond Register. The Fiscal Agent will keep or cause to be kept, at its Principal Office, sufficient books for the registration and transfer of the Bonds, which books shall show the series number, date, amount, rate of interest and last known Owner of each Bond and shall at all times be open to inspection by the School District during regular business hours upon reasonable notice; and, upon presentation for such purpose, the Fiscal Agent shall, under such reasonable regulations as it may prescribe, register or transfer or cause to be registered or transferred, on said books, the ownership of the Bonds as hereinbefore provided. The School District and the Fiscal Agent will treat the owner of any Bond whose name appears on the Bond Register as the absolute Owner of such Bond for any and all purposes, and the School District and the Fiscal Agent shall not be affected by any notice to the contrary. The School District and the Fiscal Agent may rely on the address of the Owner as it appears in the Bond Register for any and all purposes. Section Temporary Bonds. The Bonds may be initially issued in temporary form exchangeable for definitive Bonds when ready for delivery. The temporary Bonds may be printed, lithographed or typewritten, shall be of such authorized denominations as may be determined by the School District, and may contain such reference to any of the provisions of this Agreement as may be appropriate. Every temporary Bond shall be executed by the School District upon the same conditions and in substantially the same manner as the definitive Bonds. If the School District issues temporary Bonds it will execute and furnish definitive Bonds without delay and thereupon the temporary Bonds shall be surrendered, for cancellation, in exchange -13-

17 for the definitive Bonds at the Principal Office of the Fiscal Agent or at such other location as the Fiscal Agent designate, and the Fiscal Agent shall authenticate and deliver in exchange for such temporary Bonds an equal aggregate principal amount of definitive Bonds of authorized denominations. Until so exchanged, the temporary bonds will be entitled to the same benefits under to this Agreement as definitive Bonds authenticated and delivered hereunder. Section Mutilated, Lost, Destroyed or Stolen Bonds. If any Bond becomes mutilated, the School District, at the expense of the Owner of the mutilated Bond, shall execute, and the Fiscal Agent shall authenticate and deliver, a new Bond of like tenor and principal amount in exchange and substitution for the mutilated Bond, but only upon surrender to the Fiscal Agent of the mutilated Bond. Every mutilated Bond surrendered to the Fiscal Agent shall be canceled and destroyed by the Fiscal Agent, who shall deliver a certificate of destruction to the School District. If any Bond is lost, destroyed or stolen, evidence of such loss, destruction or theft may be submitted to the Fiscal Agent and, if such evidence be satisfactory to it and the Owner indemnifies the School District and the Fiscal Agent in a form satisfactory to the Fiscal Agent, the School District, at the expense of the Owner, shall execute, and the Fiscal Agent shall authenticate and deliver, a new Bond of like tenor and principal amount in lieu of and in substitution for the lost, destroyed or stolen Bond. The School District may require payment of a sum not exceeding the actual cost of preparing each new Bond delivered under this Section 2.10 and of the expenses which may be incurred by the School District and the Fiscal Agent for the preparation, execution, authentication and delivery. Any Bond delivered under the provisions of this Section 2.10 in lieu of any Bond alleged to be lost, destroyed or stolen shall constitute an original additional contractual obligation on the part of the School District whether or not the Bond alleged to be lost, destroyed or stolen is at any time enforceable by anyone, and shall be equally and proportionately entitled to the benefits of this Agreement with all other Bonds issued pursuant to this Agreement. Section Limited Obligation. All obligations of the School District under this Agreement and the Bonds shall be special obligations of the School District, payable solely from the Net Special Taxes and the funds pledged therefor hereunder. Neither the faith and credit nor the taxing power of the School District (except to the limited extent set forth herein) or the State of California or any political subdivision thereof is pledged to the payment of the Bonds. Section No Acceleration. The principal of the Bonds shall not be subject to acceleration hereunder. Nothing in this Section shall in any way prohibit the defeasance of the Bonds and discharge of this Agreement under Section Section Book-Entry System. (A) All Bonds shall be initially issued in the form of a separate single certificated fully registered Bond for each maturity date of the Bonds. Upon initial issuance, the ownership of each Bond shall be registered in the Bond Register in the name of Cede & Co., as nominee of DTC. Except as provided in Section 2.13(d) hereof, all Outstanding Bonds shall be registered in the Bond Register in the name of Cede & Co., as nominee of DTC. -14-

18 (B) With respect to Bonds registered in the Bond Register in the name of Cede & Co., as nominee of DTC, the School District and the Fiscal Agent shall have no responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any DTC Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any DTC Participant or any other person, other than an Owner, as shown in the Bond Register, of any notice with respect to the Bonds, or (iii) the payment to any DTC Participant or any other person, other than an Owner, as shown in the Bond Register, of any amount with respect to principal of and interest on the Bonds. The School District and the Fiscal Agent may treat and consider the person in whose name each Bond is registered in the Bond Register as the holder and absolute owner of such Bond for the purpose of payment of principal, and interest on such Bond, for the purpose of giving notices with respect to such Bond, for the purpose of registering transfers with respect to such Bond, and for all other purposes whatsoever. The Fiscal Agent shall pay all principal of and interest on the Bonds only to or upon the order of the respective Owners, as shown in the Bond Register, as provided in Section 2.08 hereof, or their respective attorneys duly authorized in writing, and all such payments shall be valid and effective to fully satisfy and discharge the School District s obligations with respect to payment of principal of and interest on the Bonds to the extent of the sum or sums so paid. No person other than an Owner, as shown in the Bond Register, shall receive a certificated Bond evidencing the obligation of the School District to make payments of principal and interest pursuant to this Agreement. Upon delivery by DTC to the Fiscal Agent of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., and subject to the provisions herein with respect to Record Dates, the word Cede & Co. in this Agreement shall refer to such new nominee of DTC. (C) The delivery of the Representation Letter by the School District and the Fiscal Agent shall not in any way limit the provisions of Section 2.13(b) hereof or in any other way impose upon the School District or the Fiscal Agent any obligation whatsoever with respect to persons having interests in the Bonds other than the Owners, as shown on the Bond Register. The Fiscal Agent shall take all action necessary for all representations in the Representation Letter with respect to the Fiscal Agent to be complied with at all times. (D) DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving written notice to the School District and the Fiscal Agent and discharging its responsibilities with respect thereto under applicable law. (E) The School District, in its sole discretion and without the consent of any other person, may terminate the services of DTC with respect to the Bonds if the School District determines that: or (i) DTC is unable to discharge its responsibilities with respect to the Bonds, -15-

19 (ii) a continuation of the requirement that all Outstanding Bonds be registered in the Bond Register in the name of Cede & Co., or any other nominee of DTC, is not in the best interest of the beneficial owners of such Bonds. (F) Upon the termination of the services of DTC with respect to the Bonds pursuant to subsection (E) above, or upon the discontinuance or termination of the services of DTC with respect to the Bonds pursuant to subsection (D) above after which no substitute securities depository willing to undertake the functions of DTC hereunder can be found which, in the opinion of the School District, is willing and able to undertake such functions upon reasonable and customary terms, the School District is obligated to deliver Bond certificates, as described in this Agreement and the Bonds shall no longer be restricted to being registered in the Bond Register in the name of Cede & Co. as nominee of DTC, but may be registered in whatever name or names DTC shall designate to the Fiscal Agent in writing, in accordance with the provisions of this Agreement. (G) Notwithstanding any other provisions of this Agreement to the contrary, as long as any Bond is registered in the name of Cede & Co., as nominee of DTC, all payments with respect to principal of and interest on such Bond and all notices with respect to such Bond shall be made and given, respectively, in the manner provided in the Representation Letter. Section Additional Bonds Only for Refunding. The School District may from time to time issue additional bonds or other indebtedness payable from Special Taxes only to refund and discharge the Bonds or any portion thereof in accordance with the Act. Any additional bonds or other indebtedness shall constitute Bonds hereunder and shall be secured by a lien on the Net Special Taxes and funds pledged for the payment of the Bonds hereunder on a parity with all other Outstanding Bonds hereunder. -16-

20 ARTICLE III ISSUANCE OF BONDS Section Issuance and Delivery of Bonds. At any time after the execution of this Agreement, the School District may issue the Bonds in the aggregate principal amount set forth in Section 2.01 and deliver the Bonds to the Original Purchaser. The Authorized Officers of the School District are hereby authorized and directed to deliver any and all documents and instruments necessary to cause the issuance of the Bonds in accordance with the provisions of the Act, the Resolution and this Agreement, to cause the defeasance and refunding of the Prior Bonds, to authorize the payment of Costs of Issuance by the Fiscal Agent from the proceeds of the Bonds, and to do and cause to be done any and all acts and things necessary or convenient for delivery of the Bonds to the Original Purchaser. Section Pledge of Special Taxes. The Bonds shall be secured by a first pledge (which shall be effected in the manner and to the extent herein provided) of all of the Net Special Taxes and all moneys deposited in the Bond Fund and the Reserve Fund and, until disbursed as provided herein, in the Special Tax Fund. The Net Special Taxes and all moneys deposited into said funds (except as otherwise provided herein) are hereby dedicated to the payment of the principal of, and interest on, the Bonds as provided herein and in the Act until all of the Bonds have been paid and retired or until moneys or Federal Securities have been set aside irrevocably for that purpose in accordance with Section Amounts in the Administrative Expense Fund are not pledged to the repayment of the Bonds. The facilities acquired with the proceeds of the Bonds are not in any way pledged to pay the Debt Service on the Bonds. Any proceeds of condemnation or destruction of any facilities financed with the proceeds of the Bonds are not pledged to pay the Debt Service on the Bonds and are free and clear of any lien or obligation imposed hereunder. Section Validity of Bonds. The validity of the authorization and issuance of the Bonds shall not depend upon the completion of the refunding and defeasance of the Prior Bonds. -17-

21 ARTICLE IV FUNDS AND ACCOUNTS Section Deposits of Bond Proceeds. (A) Bond Proceeds. The net proceeds of the purchase of the Bonds by the Original Purchaser in the amount of $ (calculated as the principal amount of the Bonds of $, less net original issue discount of $, less the Original Purchaser s discount of $ ) shall be paid to the Fiscal Agent on the Closing Date, who shall immediately apply such proceeds as follows: (i) $ to the Reserve Fund (being an amount equal to the Reserve Requirement as of the Closing Date). (ii) (iii) $ to the Costs of Issuance Fund. $ to the Escrow Agent for deposit into the Escrow Fund. (B) Transfers and Deposits of Other Amounts. In addition to the foregoing deposits of Bond proceeds, the School District shall cause all amounts held in the funds and accounts established under the Prior Resolution to be transferred and deposited to the Escrow Fund in accordance with and as set forth in the Escrow Agreement. Section Reserved. Section Costs of Issuance Fund. (A) Establishment of Costs of Issuance Fund. The Costs of Issuance Fund is hereby established, as a separate fund to be held by the Fiscal Agent, designated as the Mt. Diablo Unified School District Community Facilities District No. 1 Series 2016 Special Tax Refunding Bonds, Costs of Issuance Fund, to the credit of which a deposit shall be made as required by Section 4.01(A). Moneys in the Costs of Issuance Fund shall be held in trust by the Fiscal Agent and shall be disbursed as provided in subsection (B) of this Section for the payment or reimbursement of Costs of Issuance. (B) Disbursement. Amounts in the Costs of Issuance Fund shall be disbursed from time to time to pay Costs of Issuance, as set forth in a requisition in the form attached hereto as Exhibit B containing respective amounts to be paid to the designated payees, signed by an Authorized Officer and delivered to the Fiscal Agent concurrently with the delivery of the Bonds and from time to time thereafter. The Fiscal Agent shall pay all Costs of Issuance after receipt of an invoice from any such payee which requests payment in an amount which is less than or equal to the amount set forth with respect to such payee pursuant to a requisition requesting payment of Costs of Issuance. (C) Closing of Fund. The Fiscal Agent shall maintain the Costs of Issuance Fund for a period of 180 days after the Closing Date, or until all funds deposited in the Costs of Issuance Fund have been paid, if earlier, and then shall transfer any moneys remaining therein not -18-