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Reso 0311-10/1968 RESOLUTION NO. 311 RESOLUTION 0F THE BOARD 0F DIRECTORS 0F SAN MARCOS COUNTY WATER DISTRICT PROVIDING FOR THE ISSUANCE AND SALE OF BONDS 0F SAID DISTRICT FOR IMPROVE- MENT DISTRIOT N0. 6 THEREOF IN T~ AMOUNT OF $200,000 FOR THE ACQUISITION AND CONSTRUCTION OF CERTAIN DISTRICT IMPROVEMENTS. WHEREAS, pursuant to resolution adopted by the BOard of Directors of SAN MARCOS COUNTY WATER DISTRICT of San Diego County, California on May 15 , 1967 , a special election was duly and regularly held in Improvement District No. 6 of SAN MARCOS COUNTY WATER DISTRICT of San Diego County, Califomia, on June 27, 1967 , at which election there was submitted to the qualified voters of said Improvement District No. 6 the following proposition, to wit: BOND PROPOSITION: Shall the San Marcos County Water District for Improvement District No. 6 incur a bonded indebtedness in the principal sum of $1,200,000 for the purpose of the scquisltlon and construction of facilities for the collection, treatment and disposal of sewage within Improvement District No. 6 of San Marcos County Water District, including the acquisition of capacity rights in the sewage treatment plant and ocean outfall owned Jointly by the City of Carlshad and the Vista Sanitation District, and including the acquisition of capacity rights in a trunk dewar owned by the Buena Sanitation District, and including the con- struction of trunk and interceptor and collector sewers and pumping stations, and including the acquisition of the necessary land, easements, rights-of-way, works, machinery and other property, and including all engineering, inspection, legal and financial consultant fees, cost of the bond election and of the issuance of said bonds, and including Other costs and expenses incidental to or connected with such acquisition and construction? and WHEREAS, said proposition received the affirmative vote of more than two-thirds of all of the qualified voters voting at said election, and this Board is now authorized to issue bonds in the amount of $ 200,000 for the purposes hereinabove specified; WHEREAS. this Board of Directors deems it proper and the necessity therefor appears that said bonds be issued in the form and manner as hereinafter provided, and that bids be invited for said bonds, and that if bids are satisfactory said bonds be sold in the manner and at the time and place hereinafter set forth; NOW, THEREFORE, the Board of Directors of SAN MARCOS COUNTY WATER DISTRICT DOES HEREBY RESOLVE, DETERMINE AND ORDER as follows: Section 1. That bonds of SAN MARCOS COUNTY WATER DISTRICT of San Diego County, California, in the principal sum of $ 200,000 be issued and sold for the purposes set forth in the bond proposition in the recitals hereof Said bonds shall be designated" San Marcos County Water District for Improvement District NO. 6, Dewer Bonds 1968, Series B shall be 40 in number, numbered 1 to 40 both inclusive, and sh~ll be of the denomination of $5,000 each. Said bonds shall be dated October l, 1968 · and shall mature and be payable in consecutive numerical order on October 1 in the amounts for each of the several years as follows: Years Inclusive Principal Amount 1970-1989 $ 5,000 1990-1996 $10,000 1997-1998 15,000 Send bonds shall bearing interest at a rate or rates to be here- inafter fixed but not to exceed seven per cent (7%) per annu, payable annually the first year on October 1, 1969, and semi- annually thereafter on the 1st day of April and October of each year. Said bonds and the interest thereon shall be pay- able in lawful money of the United States of America at the office of the District Auditor in San Marcos, California, or at the Main Office of the Security First National Bank in Los Angeles or San Diego, California, or at any paying agent of the District in Chicago, Illinois, or New York, New Y~rk, at the option of the holder thereof. The interest coupons to be attached to the bonds shall be numbered in consecutive numerical order, beginning with Coupon No. l, which shall be for the annual interest due October 1, 1969, Section 2. Any of ssid bonds may be registered either as to principal only or as to both principal and interest, and the form of registration of any registered bond may be changed or any registered bond msy be discharged from registration in the manner and with the effect set forth in the provisions for registration contained in the form of bond set forth herein. Section 3. The President of San Marcos County Water Distrist and of the Board of Directors thereon and the Auditor of said District are hereby authorized and directed to sign all of said bonds, and the Secretary of said District and of the Board of Directors thereof is hereby authorized and directed to countersign said bonds and to affix thereto the official seal of said District, and the said Auditor is hereby authorized and directed to sign the interest coupons of said bonds. All such signatures and counter- signatures may be printed, lithographed, engraved or otherwise mechanically reproduced, except that one cf said signatures or countersignatures to said bonds shall be manually affixed. Section 4. Said bonds and the coupons for the interest thereon shall be issued in substantially the following form: UNITED STATES OF AMERICA STATE OF CALIFORNIA COUNTY OF SAN DIEGO SAN MARCOS COUNTY WATER DISTRICT FOR IMPROVEMENT DISTRICT NO. 6, SEWER BOND 1968, SERIES B SAN MARCOS COUNTY WATER DISTRICT, a public corpo- ration situated in the County of San Diego, State of California, and organized and existing under the laws of the State of California, FOR VALUE RECEIVED hereby acknowledges itself indebted and promises to pay to the bear hereof the sum of FIVE THOUSAND DOLLARS ($5,000) on the 1st day of October 19 , ~lth interest thereon at the rate of percent ( ~) ~or annum, payable semiannually on the 1st day of April and october of each and every year from the date hereof until this bond is paid, except that the interest for the first year shall be payable in one installment at the end of said year, on presentation and surrender of the respective interest coupons heroto attached. Both principal and interest are payable in lawful money of the United States of America at the office of the District Auditor in San Marcos, California, or at the Main Office of the Security First National Bank in Los Angeles or San Diego, California, or at any paying agent of the District in Chicago, Illinois, or New York, New at the option of the holder hereof. This bond is issued under and in pursuance of end in conferairy with the provisions of the County Water District Law, being Division XII of the Water Code of the State of California, and acts supplementary thereto, and in pursuance of the laws and Constitution of the State of California, and is authorlzod by a vote of more than two-thirds of all of the qualified voters of Improvement District No. 6 of said District voting at an election duly and regularly called, held and con- ' dusted in said Improvement District No. 6 on June 27, 1967. IT IS HEREBY CERTIFIED, RECITED AND DECLARED that . all acts, conditions and things required by law to exist, happen and be perfeared precedent to and in the issuance of this bond hnvo existed, happened and been performed in due time, form and manner as required by law. IN WITNESS WHEREOF, the Board of Directors of SAN MARCOS COUNTYWATER DISTRICT of San Diego County, California, has caused this bond to be signed by the President of said Dietriot and of the Board of Directors, and by the Auditor of said District and countersigned by the Secretary of said District by their printed, lithographed or engraved facsimile signatures, except, that the countersignature of the Secretary shall be manually affixed, and the corporate seal of said District to be hereto affixed, and the interest coupons to be attached to be signed by said Auditor by her printed, lithographed or engraved facsimile signature, and this bond to be dated the 1st day of 0ctober~ 1968. ~y Water District. County ~'jatep Dist~Ict COUNTERSIGNED y of said District. (O0UPON FORM) On the 1st day of SAN MARCOS COUNTY WATER 19 .... DISTRICT, California, will pay ~o the bearer hereof ~ne office of ~he District Auditor in San Marcos, California, or at ~ho Main Office of ~he Security First National Band in Los Angeles or San Diego, California, or a~ any paying agent of ~he District in Chicago, Illinois, or New York, New York, at ~he option of ~he holder hereof, ~ne sum of in lawful money of ~he United States of America, being ~he interest then due on San Marcos County Water District fo~ Impmvement District No. 6, Sewer Bond 1968, Series B. No. Dated: October 1, 1968 Auditor of San Marcos county Water District 9/64-5a Substantially the following provisions for regis- tration shall be printed on the reverse side of each bond: PROVISIONS FOR REGISTRATION This bond may be registered in the name of any person as the registered owner hereof, either as to principal only or as to both principal end interest, and, if registered in either of said forms may be changed to registration in the other of said forlns or discharged from registration. Each registration, transfer after registra- tion, change of form of registration, or discharge from registration of this bond shall be entered by the in books kept for the purpose and noted by said in the registration blank below. Registration as to principal only shall not affect the negotlability by delivery of the coupons pertaining hereto. Upon registration as to both principal and interest, all unmstured coupons pertaining heroic shall be surrendered to the and may be preserved or cancelled in the discretion of said Treasurer So long as this bond is registered no trans- fer hereof shall be valid for any purpose unless made by the registered owner and entered end noted as herein provided, end the principal hereof and any redemption premium shall be payable only to the registered owner, or to his order interest on this bond, If registered as to botb principel and lnterest~ shall be payable to the person whose name appears upon the registry books as the regis- tered owner hereof at ~he close of business on the tenth day preceding the interest payment~ date, or to his order~ If this bond is registered as to both principal and interest and its registration is changed to registration as to principal only, or if it is discharged from registration, there shall be attached hereto coupons representing interest hereon to become due ~hereafter to the date of maturity hereof. In lieu thereof, and upon surrender and cancellation hereof, the treasurer may issue in exchange therefor a new bond, with such coupons attached, identical with this bond, except for the previous notations * Auditor 9,'~4 5b on the registration blank hereon, and except that the signatures on the new bond shall be those of the persons holding the offices at the time of affixing such signatures° The issuance of any such new bond or new coupons shall be at the ex- pense of the registered owner. Each discharge hereof from registration shall be effected by an entry on the registry books, and a notation in the blank below, that this bond is payable to bearer, whereupon this bond shall become an unregistered bearer instrument, negotiable by delivery as if it had never been registered Each request for registration, transfer, change or dis- charge must be in form satisfactory to the finance Auditor nor and must be made in writing, signed by the registered owner, or by his agent duly authorized in writing, or by the bearer, as the ease may be. · Date of In Whose Name Manner of S~gnature of Registration R_e_g!stered Registration (T0 BE INSERTED ON FACE OF BOND) Unless this bond matures on or prior to October 1, 1982 it is redeemable prior to maturity in accordance with the provisions for redemption endorsed hereon. (REVERSE OF COUPON) If the bond to which this coupon is attached is redeemable and is duly called for redemption on a date prior to the maturity date of this coupon, this coupon will be void. (REVERSE OF BOND) PROVISIONS FOR REDEMPTION Unless this bond matures on or prior to October 1 1982 it is redeemable in the manner an~ subJect to the terms and provi- sions, and with the effect, set forth in Res- olution No. (adopted by the Board of Directors of on ) at the option of said Board on October 1, 1982 or on any interest payment date thereafter prier to maturity, up- on at least thirty (30) days' prior notice in a financial newspaper or Journal of national circulation, published in the City and State of New York, at a redemption price equal to the principal amount hereof, plus a premium equal to one-quarter of one per cent of the principal amount for each year or fraction of a year from the redemption date to the maturity date of the bond. Resln. of Issuance Imp.Dist. of Co.W.D. Section 5. That the proceeds of the sale of said bonds, except the premium and accrued interests if any, shall forthwith be placed in a fund of said district hereby created and designated "IMPROVEMENT DISTRICT NO. 6 , SEWER BONDS 1968 CONSTRUCTION FUND," and the moneys in said fund shall be applied exclusively to the acquisition and construction of the improvement described in the bond proposition set forth in the recitals hereof, except as provided in Section 31428 of the Water Code of the State of California. Section 6. That so far as possible the interest on and principal of said bonds shall be paid from the revenues of the San Marcos County Water District. If the San Marcos County Water District has no revenue or if the revenues of the district are, or in the Judgment of this Board of Directors are likely to be, inadequate to pay the interest on or principal of said bends as it becomes due, an annual tax shall be levied and collected upon all tax- able property within Improvement District No. 6 of San Marcos County Water District sufficient to pay the interest on said bonds as the same falls due and also to constitute a sinking fund for the payment of the principal of said bonds on or be- fore maturity, all as provided in the County Water District Law, being Division XII of the Water Code of the State of California. The premium and accrued interest, if any, re- ceived from the sale of said bonds and all moneys derived from such tax and all other moneys allocated and designated for the payment of said bonds and the interest thereon shall be placed in a fund of the district designated, "IMPROVEMENT DISTRICT SERIES B SINKING NO. 6 , SEWER BONDS 1968~ , INTEREST AND)~FUND," and until all of said bonds, and all interest thereon has been fully paid the moneys in said fund shall be used for no other purpose than the payment of said bonds and the interest thereon. Section 7 The bonds maturing on or prior to October 1, 1982 shall not be subject to call or redemp- tion prior to maturity. The bonds maturing on or after October 1, 1983 or any of them, my be called before maturity and redeemed at the option of the Board of Directors of the district on October l, 1982 or on any interest payment date thereafter prior to maturity, at a redemption price for each redeemable bond equal to the principal amount thereof, plus a premium equal to one-quarter of one per cent of the principal amount thereof For each year or fraction of a year from the redemption date to the maturity date of the bond. All or any of the bonds subject to call may be called for redemption at any one time. If less than all of the bonds are redeemed at any one time, such bonds shall be redeemed only in inverse order of maturity and nmber beginning with the highest numbered bond. The interest payment date on which bonds which are called are to be presented for redemp- tion is hereinafter sometimes called the "redemption date." Section 8 Notice of the intended redemption shall be published by one (1) publication in a financial newspaper or Journal of national circulation, published in the City and State of New York, said publication to be at least thirty (30) days but not more than sixty (60) days prior to the ll. redemption date. The notice of redemption shall (a) state the redemption date; (b) state the redemption price; (c) state the numbers and dates of maturity of the bonds to be redeemed; provided, however, that whenever any call includes all of the bonds of a maturity, the numbers of such maturity need not be stated; (d) require that such bonds be surrendered with all interest coupons maturing subsequent to the redemption date (except that no coupons need be surrendered on bonds registered as to both principal and interest) at the office of the District Auditor in San Marcos, California, or at the Main Office of the Security First National Bank in Los Angeles or San Diego, California, or at any paying agent of the District in Chicago, illinois, or New York, New York, at the option of the holder thereof'; (e) require that bonds which at the time of call are regis- tares so as to be payable other than to bearer shall be accompanied by appropriate instruments of assignment duly executed in blank; and (f) give notice that further interest on such bonds will not accrue after the designated redemption date. If any of the bonds designated for redemption shall be registered so as to be payable otherwise than to Auditor bearer, the Auditor of the district shall, on or before the date of the publication of said notice of redemption, mail a similar notice, postage prepaid, to the respective registered owners thereof at the addresses appearing on the bond registry books. The actual receipt by the holder of any bond (hereinafter referred to as "bondholder") of notice of such 12. redemption shall not be a condition precedent to redemption, and failure to receive such notice shall not affect the validity of the proceedings for the redemption of such bonds or the cessation of interest on the date fixed for redemption. The notice or notices required by this section Auditor shall be given by the of the district. A certificate Auditor by said that notice of call and redemption has been given to holders of registered bonds as herein provided shall be conclusive as against all parties, and no bondholder whose registered bond is called for redemption may object thereto or object to the cessation of interest on the redemption date fixed by any claim or showing that he failed to actually re- ceive such notice of call and redemption. Section 9 . Prior to the time the Board of Directors determines to call and redeem any of said bonds there shall be established in the treasury of the district a redemption fund to be described or known as "San Marcos County Water District for Improvement District No. 6, Sewer Bonds 1968, Series B, Redemption Fund" and prior to the publication of the notice Of a redemption there must be set aside in said Redemption Fund moneys avail- able for the purpose and sufficient to redeem, at the premiums Dayable as in this resolution provided, the bonds designated in such notice of redemption. Said moneys must be set aside in said fund solely for that purpose and shall be applied on or after the redemption date to payment (principal and premium) for the bonds to be redeemed upon presentation and surrender of such bonds and all interest coupons maturing after the redemption date, and shall be used only for that purpose. 10/65-5a after the redemption date, and shall be used only for that purpose Any interest coupons due on or prior to the redemption date shall be paid from the Interest and Sinking Fund provided for herein upon presentation and surrender thereof. Any interest due on or prior to the redemption date upon bonds registered as to both principal and interest shall be paid from said Interest Fund~ Each bond presented (if unreglstered or registered as to principal only) must have attached thereto or presented therewith all interest coupons maturing after the redemption date~ If after all of the bonds have been redeemed and cancelled or paid and cancelled there are moneys remaining in said Redemption Fund, said moneys shall be transferred to the general fund of said district~ provided~ however, that if sa~d moneys are part of the proceeds of refunding bonds~ said moneys shall be transferred to the fund created for the payment of principal of and interest on such refunding bondsl Section 10 When notice of redemption has been given, substantially as provided for herein and when the amount necessary for the redemption of the bonds called for redemption (principal and premium) is set aside for that purpose in the Redemption Fund, as provided for herein, the bonds designated for redemption shall become due and payable on the date fixed for redemption thereof, and upon presenta- tion and surrender of said bonds and (except as to bonds registered as to both principal and interest) all interest coupons maturing after the redemption date, at the place specified in the notice of redemption and, if any of said bonds be registered, upon the appropriate assignment thereof 10/65-6a in blank, such bonds shall be redeemed and paid at said re- demption price out of the Redemption Fund, and no interest will accrue on such bonds called for redemption or on any interest coupons thereof after the redemption date specified in such notice, and the holders of said bonds so called for redemption after such redemption date shall look for the pay- ment of such bonds and the premium thereon only to said Re- demption Fund° All bonds redeemed and all interest coupons thereof shall be cancelled forthwith by the Auditor of the district and shall not be reissued. All interest coupons pertaining to any redeemed bonds, which coupons have matured on or prior to the time fixed for redemption, Shall continue to be payable to the respective holders thereof but without interest thereon. All unpaid interest payable at or prior to the date fixed for re- demption upon bonds registered in such manner that the interest is payable only to the registered owners shall continue to be payable to the respective registered owners of such bonds, or their order, but without interest thereon. Section 11. That sealed proposals for the purchase of $200,000 bonds be received by this Board of Directors at its meeting place, Office of the District, 788 West Encinitas Road, San Marcos, California, up to the hour of 3:00 o'clock p.m. (California Daylight Saving Time) on September 24, 1968 Section 12. That the Secretary of this Board is hereby authorized and directed to publish notice inviting such sealed proposals once in the ESCONDIDO DAILY NEWS - ADVOCATE, a newspaper of general circulation, circulated within said district, said publication to be a least ten (10) days prior to the date of opening bids stated in said notice. Section 13. That the Secretary of this Board is hereby authorized and directed to cause to be furnished to prospective bidders copies of the notice inviting proposals and of an official statement relating to the properties, operations and finances of said district and of Improvement District No. 6, but failure in whole or in part ot comply with this section shall not in any manner affect the validity of the sale. Section 14. That said notice shall be substantially as follows: Hey, 11/6~-1 NOTICE INVITING BIDS ON $200, 000 GENERAL 0BLIGATION BONDS OF SAN MARCOS COUNTY WATER DISTRICT FOR IMPROVEMENT DISTRICT NO, 6 NOTICE IS HEREBY GIVEN that sealed proposals for the purchase of $ 200,000 par value general obligation bonds of San Marcos County Water District of San Diego County, California, will be received by the Board of Directors of said district at the place and up to the time below specified: TIME: 3:00 o'clock P.M. California Daylight Time September 24, 1968. PLACE: 0ffice of the District 788 West Encinitas Road San Marcos, Califonia MAILED BIDS: San Marcos County Water District 788 West Encinitas Road San Marcos, California Attention: Secretary ISSUE: $ 900,000 designated "San Marcos County Water District for Improvement District No. 6, Sewer Bonds 1968, consisting of 40 bonds, numbered 1 to 40 , both inclusive, of the denomination of $ 5,000 each, dated October 1 , 1968 · MATUTRITIES: The bonds will mature in consecutive numerical order on October 1 in the amounts for each of the several years as follows: Years Principal Inclusive Amount 1970-1989 $ 5,000 1990-1996 10, 000 1997-1998 15,000 INTEREST: The bonds shall bear interest at a rate or rates to be fixed upon the sale thereof but not to exceed 7 % per annum, payable annually the first year and semiannually thereafter. PAYMENT: Said bonds and the interest thereon are payable in lawful money of the United States of America at the office of the District Auditor in San Marcos, California or at the Main Office of the Security First National Bank in Los Angeles or San Diego, California, or at any paying agent of the District in Chicago, Illinois, or New York, New York, as the option of the holder thereof. 18. REGISTRATION: The bonds will be coupon bonds regis- trable as to principal only or as to both principal and in- terest, and the form of registration may be changed, or the bonds discharged from registration, all in accordance with the provisions in the resolution providing for the issuance of the bonds. REDEMPTION: The bonds maturing on or prior to 0ctober 1, 1982, shall not be subject to call or redemp- tion prior to maturity. The bonds maturing on or after October 1, 1983, or any of them, Pay be called before maturity and redeemed at the option of the Board of Directors of the district on October 1, 1982 or on any interest payment date thereafter prior to maturity, at a redemption price for each redeemable bond equal to the principal amount thereof, plus a proalum equal to one-quarter of one per cent of the principal amount thereof for each year of fraction of a year from the redemption date to the maturity date of the bond . All or any of the bonds subject to call may be called for redemption at any one time. If less than all of the bonds are redeemed at any one time, such bonds shall be redeemed only in inverse order of maturity and number beginning with the highest numbered bond. PURPOSE OF ISSUE: Said bonds were authorized for the . purpose of acquiring and constructing sewage facilities for the lands and inhabitants of Improvement District No. 6, including capacity rights in the treatment plant and outfall now jointly owned by the City of Carlsbad and the Vista Sanitation District, and in a transmission main now owned by the Buena Sanitation District. SECURITY: Said bonds are issued pursuant to the County Water District Law being Division XII of the Water Code of the State of California. Under said law, to the extent that payments are not made from revenues, an annual tax shall be levied upon all taxable property within said improvennt District No 6 sufficient to pay the interest on said bonds as the same falls due, and also to constitute a sinking fund for the payment of the principal of said bonds on or before maturity. Rev~ 12/64-4 TERMS OF SALE Interest Rate: The maximum rate bid may not excesd 7 % per annum payable annually the first year and semi- annually thereafter. Each rate bid must be a multiple of 1/ath or 1/20thof 1%. No bond shall bear more than one interest rate, and all bonds of the same maturity shall bear the same rate. Each bond must bear interest at the rate Specified in the bid from its date to its fixed maturity date. Only one coupon will be attached to each bond for each install- ment of interest thereon, and bids providing for additional Or supplemental coupons will be rejected The rate on any maturity or group of maturities shall not be more than 1-1/2 % higher thatn the interest rate on any other maturity or group of maturities. Award: The bonds shall be sold for cash only. All bids must be for not less than all of the bonds hereby offered for sale and each bid shall state that the bidder offers par and accrued interest to the date of delivery, the promium, if any, and the interest rate or rates not exceed those specified herein, at which the bidder offers to buy said bonds. Each bidder shall state in his bid the total net interest cost in dollars nad the average net interest rate determined thereby, which shall be considered informative only and not a part of the bid. Highest bidder: The bonds will be awarded to the highest responsible bidder or bidders considering the interest rate or rates specified and the promium offered, Bey. 12/6~:5 if any. The highest bid will be determined by deducting the amount of the premium bid (if any) from the total amount of interest which the district would be required to pay from the date of said bonds to the respective maturity dates thereof at the coupon rate or rates specified in the bid, and the award will be made on the basis of the lowest net interest cost to the district° The purchaser must pay accrued interest from the date of the bonds to the date of delivery, computed on a 360-day year basis. The cost of printing the bonds will be borne by the district° Right of Rejection The district reserves the right, in its discretion, to reject any and all bids and to the extent not prohibited by law to waive any irregu- larity or informality in any bid° Prompt Award: The district will take action awarding the bonds or rejecting all bids not later than twenty-six (26) hours after the time herein prescribed for the receipt of proposals~ provided that the award may be made after the expiration of the specified time if the bidder shall not have given to said Board notice in writing of the withdrawal of such proposal. Place of Delivery~ Delivery of said bonds will be made to the successful bidder at the Main Office, Security First National Bank, San Diego, California, except as may be otherwise agreed upon between the District and the successful bidder. Rev 12/64-5 Prompt Delivery Cancellation for Late Delivery: It is expected that said bonds will be delivered to the successful bidder within 30 days from the date of sale thereof. The successful bidder shall have the right, at his option, to cancel the contract of purchase if the district shall fail to execute the bonds and tender them 60 for delivery within days from the date heroin fixed for the receipt of bids, and in such event the successful bidder shall be entitled to the return of the check accom- panying his bid. Form of Bid Each bid, together with the bid check, must be in a sealed envelope, addressed to the district with Bonds of the envelope and bid clearly marked "Proposal for San Marcos County Water District for lmprovement District No. 6, Sewer Bonds 1958, Series B Bid Check~ A certified or chasler's check on a responsible bank or trust company in the amount of 3% of the principal amount of the bonds, payable to the order of the district must accompany each proposal as a guaranty that the bidder, if successful, will accept and pay for said bonds in accordance with the terms of his bid° The check accompany- ing any accepted proposal shall be applied on the purchase price or, if such proposal is accepted but not performed, unless such failure of performance shall be caused by any act or omission of the district, shall then be cashed and the pro- ceeds retained by the district° The check accompanying each unaccepted proposal will be returned promptly° Change in Tax Exempt Status At any time before the bonds are tendered for delivery, the successful bidder may disaffirm and withdraw the proposal if the interest received by private holders from bonds of the same type and character shall be declared to be taxable income under present federal income tax laws, either by a ruling of the Internal Revenue Service or by a decision of any federal court, or shall be declared taxable by the terms of any federal income tax law enacted subsequent to the date of this notice. Legal Opinion: The unqualified opinion of O'Melveny & Myers, attorneys, approving the validity of said bonds will be furnished the successful bidder at or prior to the time of delivery of the bonds, at the expense of the district. A copy of such opinion, certified by an officer of the district by his facsimile signature will be printed on the back of each bond. No charge willbe made to the purchaser for such printing or certification. No Litigation Certificate: At the time of payment for and delivery of said bonds, the district will furnish the successful bidder a certificate that there is no litigation pending affecting the validity of the bonds. INFORMATION AVAILABLE: Requests for information concerning the district should be addressed to Schwabacher - Hafferty & Co. 625 Market Strset San Francisco, California 94105 Tel. (AC 415)- 392-7672 GIVEN by order of the Board of Directors of San Marcos County Water District adopted on September 3, 1968 of s County Water District. ADOPTED, SIGNED AND APPROVED this 3rd day of September, , 1968. County Water District. ATTES · the ~oard f said district. (SEAL) STATE OF CALIFORNIA as. COUNTY OF SAN DIEGO I, C. J. Houeon, Secretary of the Board Of Directors of SAN MARC0S COUNTY WATER DISTRICT, DO HEREBy CERTIFY that the foregoing resolution was duly adopted by the Board of Directors of said district at a regular meeting of said Board held on the 3rd day Of September , 1968, and that it was so adopted by the following vote: AYES: Directors: Dow, Dutton, Mahr, Vanderbeck NOES: Directors: None ABSENT: Directors: Blanchard of Directors thereof. STATE OF CALIFORNIA MS. COUNTY OF SAN DIEGO I, C. J. Houson, Secretary of the Board of Directors of SAN MARC0S COUNTY WATER DISTRICT, DO HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of Resolution No. 299 of said Board, and that the same has not been amended or repealed. DATED: 5 September , 1968. of Directors thereof.