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Home My WebLink AboutRDA RES 350RESOLUTION NO. 350 A RESOLUTION OF THE PALM DESERT REDEVELOPMENT AGENCY APPROVING A SUPPLEMENTAL INDENTURE RELATING TO THE AGENCY'S SERIES 1995 BONDS RECITALS: A. The Palm Desert Redevelopment Agency, by Resolution No. 312, adopted July 13, 1995, authorized the issuance of its Palm Desert Redevelopment Agency Project Area No. l, As Amended (Added Territory Only) Tax Allocation (Housing Set-Aside) Refunding Bonds, Series 1995 (the "Series 1995 Bonds"). B. The Agency determined to issue the Series 1995 Bonds pursuant to an Indenture and to secure the Series 1995 Bonds in the manner provided therein. C. The Official Statement for the Series 1995 Bonds states, with respect to the issuance of additional bonds and parity debt, as follows: "The Pledged Tax Revenues based upon the most recent assessed valuation of taxable property in the Added Territory as shown on the most recently equalized assessment roll of Riverside County, California, as reported by the Auditor-Controller or other appropriate officer of Riverside County, preceding the date of the Agency's adoption of the Supplemental Indenture providing for the issuance of the Parity Debt, and assuming a combined tax rate of 1.00%, shall be in an amount equal to at least 1150 of the Maximum Annual Debt Service on all then Outstanding Agency Securities and such Parity Debt and any unsubordinated loans, advances or indebtedness payable from Pledged Tax Revenues." Provisions of the Indenture between the Agency and the Trustee, however, state that such Pledged Tax Revenues shall be in an amount equal to at least 150 percent of such Maximum Annual Debt Service. D. Based upon records of the Agency, the Agency has determined that the foregoing described provisions of the Indenture which state a"coverage test" of 150 percent, rather than 115 percent, are clerical errors. NOW THEREFORE, THE PALM DESERT REDEVELOPMENT AGENCY HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section l. The foregoing recitals are true and correct. - •-�- p`;_�- '`�-- - , ,_. �6;`6 - RESOLUTION NO. 350 Section 2. The form of the Supplemental Indenture presented to the Agency at this meeting is hereby approved and the Executive Director is hereby authorized and directed, for and in — the name and on behalf of the Agency to execute such Supplemental Indenture, with such modifications thereto as may be approved by the Executive Director after consultation with Agency Counsel. PASSED, APPROVED AND ADOPTED this llth day of December, 1997. AYES: CRITES, FERGUSON, KELLY, SPIEGEL, BENSON NOES: NONE ABSENT: NONE ABSTAIN: NONE � � � � � � U Je . Benson, Chairperson ATTEST: \ ( ` ' ��`�-� � � Sheil . Gilligan,Secretary U �-__-. r<:ac_-�.��:�i _ ,.. ;e-:��F , — 2 — RESOLDTION N0. 350 SUPPLEMENTAL INDENTURE THIS SUPPLEMENTAL INDENTURE (the "Supplemental Indenture") is made and entered into as of December 1, 1997, by and between the PALM DESERT REDEVELOPMENT AGENCY, a public body, corporate and politic, organized and existing under and by virtue of the laws of the State of California (the "Agency"), and FIRST TRUST OF CALIFORNIA, NATIONAL ASSOCIATION, a national banking association, authorized to accept and exec�zte trusts of the character herein set forth with a corporate trust office located in Los Angeles, California, as successor trustee (the "Trustee"); RECITALS: r A. The Agency, by Resolution No. 312, adopted July 13, 1995, authorized the issuance of its Palm Desert Redevelopment Agency Project Area No. 1, As Amended (Added Territory Only) Tax Allocation (Housing Set-Aside) Refunding Bonds, Series 1995 (the "Series 1995 Bonds"). B. The Agency determined to issue the Series 1995 Bonds pursuant to an Indenture dated as of August l, 1995 between the Agency and Bank of America National Trust and Savings Association as trustee (the "Indenture") and to secure the Series 1995 Bonds in the manner provided therein. C. The Official Statement for the Series 1995 Bonds states, with respect to the issuance of additional bonds and parity debt, as follows: "The Pledged Tax R�"3venues based upon the most recent assessed valuation of taxable property in the Added Territory as shown on the most recently equalized assessment roll of Riverside County, California, as reported by the Auditor-Controller or other appropriate officer of Riverside County, preceding the date of the Agency's adoption of the Supplemental Indenture providing for the issuance of the Parity Debt, and assuming a combined tax rate of 1.00o, shall be in an amount equal to at least 115% of the Maximum Annual Debt Service on all then Outstanding Agency Securities and such Parity Debt and any unsubordinated loans, advances or indebtedness payable from Pledged Tax Revenues." Provisions of the Indenture between the Agency and the Trustee, however, state that such Pledged Tax Revenues shall be in an amount equal to at least one 150 percent of such Maximum Annual Debt Service. D. Based upon records.of the Agency, the Agency has determined that the foregoing described provisions of the Indenture which state a"coverage test" of 150 percent, rather than 115 percent, are defective, as a result of clerical error. 971202 P64C�-OC'v61 syc �3�1624 3 RESOLOTION N0. 350 NOW THEREFORE, THIS SUPPLEMENTAL INDENTURE WITNESSETH, in consideration of the premises and of the mutual covenants herein contained, the Agency does hereby covenant and agree with the Trustee as follows: Section l. Paragraph (c) of Section 4.01 of the Indenture is hereby corrected and amended to read as follows: "(c) The Pledged Tax Revenues based upon the assessed valuation of taxable property in the Added Territory as shown on the most recently equalized assessment roll of Riverside County, California, as reported by the Auditor-Controller or other appropriate officer of Riverside County, preceding the date of the Agency's adoption of the Supplemental Indenture providing for the issuance of such Additional Bonds, and assuming a combined tax rate of 1.00o, shall be in an amount determined by the Agency to be equal to at least one hundred fifteen percent (115%) of the Maximum Annual Debt Service on all then Outstanding Bonds and such Additional Bonds and any unsubordinated loans, advances or indebtedness payable from Pledged Tax Revenues pursuant to the Law." "For the purposes of the issuance of Additional Bonds, Outstanding Bonds shall not include any Bonds the proceeds of which are deposited in an escrow fund held by an escrow agent, provided that the Supplemental Indenture authorizing issuance of such Additional Bonds shall provide that: (i) such proceeds shall be invested in Authorized Investments rated AA/Aa or better (unless otherwise approved by the Bond Insurer, if any) at a rate of interest which, together with amounts made available by the Agency from bond proceeds or otherwise, is at least sufficient to pay Annual Debt Service on the foregoing Bonds; (ii) moneys may be transferred from said escrow fund only if Pledged Tax Revenues (calculated in accordance with the preceding paragraph of this subsection (c)) for the then current Fiscal Year shall be at least equal to 1.15 times Maximum Annual Debt Service on all Outstanding Bonds (exclusive of disqualified Bonds described in Section 8.02) less a principal amount of Bonds which is equal to moneys on deposit in said escrow fund after each such transfer; and (iii) Additional Bonds shall be redeemed from moneys remaining on deposit in said escrow fund at the expiration of a specified escrow period in such manner as may be determined by the Agency." "In the event such Additional Bonds are to be issued solely for the purpose of refunding and retiring any Outstanding Bonds, interest and principal payments on the Outstanding Bonds to be so refunded and retired from the proceeds of such Additional Bonds being issued shall be excluded from the foregoing computation of Maximum Annual Debt Service. Nothing contained in the Indenture shall limit the issuance of any tax allocation bonds of the Agency payable from the Pledged Tax Revenues and secured by a lien and charge on the Pledged Tax Revenues if, after the issuance and delivery of such tax allocation bonds, none of the 971202 ?6402-COOCi s�c 032162<: 3 — 2— RESOLUTION N0. 350 Bonds theretofore issued hereunder will be Outstanding nor shall anything contained in this Indenture prohibit the issuance of any tax allocation bonds or other indebtedness by the Agency secured by a pledge of tax increment revenues (including Pledged Tax Revenues} subordinate to the pledge of Pledged Tax Revenues securing the Bonds." Section 2. The Agency has determined, in accordance with Section 8.01(b) of the Indenture, that the foregoing amendment is necessary for the purpose of correcting a defective provision contained in the Indenture, and that such amendment is not inconsistent with the true intent of the Indenture and will not adversely affect the interest of the Owners of the Series 1995 Bonds. IN WITNESS WHEREOF, the PALM DESERT REDEVELOPMENT AGENCY has caused this Supplemental Indenture to be signed in its name by its Executive Director and attested by its Secretary, and FIRST TRUST OF CALIFORNIA, N.A. NATIONAL ASSOCIATION, has caused this Supplemental Indenture to be signed in its corporate name by its officer thereunto duly authorized, all as of the date and year first above written. PALM DESERT REDEVELOPMENT AGENCY By Executive Director ' FIRST TRUST OF CALIFORNIA, NATIONAL ASSOCIATION, as Trustee By Authorized Officer 9�1202 P6402-G2.�01 syc C32iE24 3 — 3—