Agenda - 03-02-2006-8bOS - Laserfiche WebLink

Browse Search

Purposes The County is entering into the Financing Contract to obtain funds from the sale of the 2006A Certificates to pay the costs of the construction, equipping and installation of a ne«~ middle school (the "Middle School") and certain other public improvement projects, as described herein under "THE PLAN OF FINANC:'E," and to pay certain costs incul•1•ed in connection with the initial delivery and execution of the 2006 A Certificates. The Middle School will be leased to The Orange County Board of Education (the "Board of Education") for school purposes for nominal rent, but the Board of Education will have no responsibility for payment of any amounts due with respect to the 2006A Certificates. See "THE PLAN OF FINANCE" and "ESTINL~TED SOURCES AND USES OF FUNDS" herein. The 2006A Certificates The 2006A Certificates will be dated April 1, 2006. Interest with respect to the 2006A Certificates will be payable from their date semiannually on each October 1 and April 1, beginning October 1, 2006, at the rates set forth on the cover. Principal ri~ith respect to the 2006A Certificates will be payable, subject to prepayment as described herein, on April 1 in the years and amounts set forth on the cover. See ``THE 2006A C"ERTIFICATES -General Terms" herein. Security The 2006A Certificates will represent proportionate and undivided interests in certain payments to be made by the County under the Financing Contract (as well as certain insurance and condemnation proceeds and proceeds from the exercise of remedies, all as may arise under the Financing Contract). The County's payments under the Financing Contract are designed to be sufficient in time and amount to pay the principal of and interest on the 2O06A Certificates. To secure the performance of its obligations under the Financing Contract, the County «7i11 execute and deliver to a deed of trust trustee (the "Deed of Trust Trustee") for the benefit of the Company, a. Deed of Trust and Security Agreement dated as of April 1, 2006 {the "Deed of Trust"}, granting a lien {subject to certain encumbrances permitted under the Deed of Trust) on the Middle School, the underlying real property (the "Site"}, and all buildings, fixtures and improvements on the Site (collectively, the "Mortgaged Property," which term shall include all replacements and proceeds of such property and the Fixtures, as defined Belo«~). In addition, the County will grant to the Deed of Trust Trustee a separate security interest in certain fixtures (the "Fixtures"), all pursuant to the Deed of Trust and in each case including all replacements and proceeds of such Fixtures. The County will not grant a security interest in any personal property other than the Fixtures. The Company will assign all of its rights in the Deed of Trust to the Trustee pursuant to the Trust Agreement. A release of all or part of the IVlortgaged Property from the Deed of Trust lnay be permitted provided that certain conditions are met. See the captions "SECURITY AND SOLJRCES OF PAYMENT -Release of Securty" herein and "SUl~Il~L4RY OF PRINC:'IPAL LEGAL DOCUMENTS -The Deed of Trust -Releases; Grants of Easements" in Appendix B hereto. If the County fails to make payments under the Financing Contract sufficient to pay the principal of and interest on the 2006A Certificates, the Trustee is authorized under the Financing C-883836v4 13361.00022 2