HomeMy WebLinkAbout1991-261
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RESOLUTION NO. 91-261
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AUTHORIZING THE EXECUTION OF AMENDMENT NO. FIVE TO
THE LOAN AGREEMENT RELATING TO CENTRAL CITY PROMENADE.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON
COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. The Mayor of the City of San Bernardino is
hereby authorized and directed to execute Amendment No. Five to the
Loan Agreement between the City of San Bernardino and Central City
Promenade, in the form of a copy of said Amendment attached hereto
as Exhi bi t "A".
SECTION 2. Said Amendment shall not take effect until
fully signed and executed by all parties. The City shall not be
obligated hereunder unless and until the Amendment is fully
executed and no oral agreement relating thereto shall be implied or
authorized.
Section 3. This resolution is rescinded if the parties
to the Amendment fail to execute it within sixty (60) days of the
passage of this resolution.
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DAB:bl: 1472A
June 13, 1991
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RESOLUTION.. .AUTHORIZING THE EXECUTION.. .RELATING TO
CENTRAL CITY PROMENADE.
I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Mayor and Common Council of the City of San
Bernardino at a requ1ar
meeting thereof, held on the 17th
day of
June
, 1991, by the following vote, to wit:
Counc i 1 Members: AYES NAYS ABSTAIN
ESTRADA -1L
REI LL Y x
HERNANDEZ -1L
MAUDSLEY x
MINOR x
POPE-LUDLAM x
MILLER
-1L
~~
day of
The foregoing resolution is hereby approved this 20th
June
, 1991.
Approved as to
form and legal content:
JAMES F. PENMAN,
Ci ty Attorney
~
DAB: b 1 : 1 472A
June 13, 1991
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~1'9?Yl R/G~
TOM MINOR, MAYOR PRO TEMPORE
City of San Bernardino
SUPPLEMENT NO. FIVE TO THE INDENTURE
This Supplement No. Five to the Trust Indenture, as
supplemented, dated as of December 15, 1984 between the City of
San Bernardino, a chartered city duly organized and existing
under the Constitution of the State of California and its City
Charter (the "Issuer") and Trust Services of America, Inc., a
California corporation, as succeeded by Manufacturers Hanover
Trust Company (the "Trustee") (the "Indenture") is made and
entered into as of June 1, 1991 between the Issuer and the
Trustee, with the consent of The Chase Manhattan Bank, N.A.
(the "Purchaser"), and Central City Promenade, a California
limited partnership (the "Company"), (the "Supplement").
Capitalized terms used in this Supplement and not otherwise
defined shall have the same meaning as in the Indenture.
WIT N E SSE T H:
WHEREAS, Section 1102 of the Indenture provides that the
Issuer and the Trustee may supplement the Indenture "as shall
be deemed necessary and desirable by the Issuer or the Trustee
for the purpose of modifying, altering, amending, adding to or
rescinding, in any particular, any of the terms or provisions
contained. . .[therein] or in any supplemental indenture;
provided, however, that nothing contained in . . .
Section [1102] shall permit, or be construed as permitting,
without the consent of the Holder or Owner of every bond,
(i) an extension of the maturity of the principal of or the
interest thereon or of any redemption dates from the Bond Fund
."; and
WHEREAS, the Purchaser is the "Holder or Owner of every
Bond"; and
WHEREAS, the Trustee or Issuer has deemed it "necessary and
desirable" to modify the Indenture; and
WHEREAS, Section 1102 of the Indenture provides further
that "a supplemental indenture . . . which affects the rights
of the Company shall not become effective unless and until the
Company shall have consented to the adoption of such
supplemental indenture"; and
WHEREAS, this Supplement "affects the rights of the
Company"; and
WHEREAS, Section 301(d) of the Indenture provides that
"prior to the Conversion Date, the Bonds are subject to
mandatory redemption, in whole, on July 1, 1991. . . unless the
Purchaser shall have given notice in writing to the
Issuer. the Trustee and the Company. stating that such
redemption shall be waived. at least forty-five (45) but no
more than sixty (60) days prior to each such redemption date";
and
WHEREAS. the Purchaser and the Company desire to further
amend Section 30l(d) of the Indenture to provide the necessary
time to supplement possibly further the Indenture.
NOW. THEREFORE. in consideration of the mutual covenants
and undertaking set forth herein. and other good and valuable
consideration. the receipt and sufficiency of which hereby are
acknowledged. the Issuer and the Trustee hereby agree as
follows:
1. Section 30l(d) of the Indenture is amended and
restated as follows:
"(d) Redemption Upon Demand Of
Purchaser. Prior to the Conversion Date. the
Bonds are subject to mandatory redemption. in
whole. on January 1. 1992. and on December 1.
1995 and on each fifth December 1 thereafter
until maturity. at a price equal to the
principal amount of Outstanding Bonds plus
accrued interest to the Redemption Date.
without premium. unless the Purchaser shall
have given notice in writing to the Issuer.
the Trustee and the Company. stating that such
redemption shall be waived. at least
forty-five (45) but no more than sixty (60)
days prior to each such redemption date."
2. This Supplement may be executed in several
counterparts. each of which shall be an original and all of
which shall constitute but one and the same instrument.
IN WITNESS WHEREOF, the parties hereto have caused this
Supplement to the Indenture to be executed on their behalf by
their duly authorized officers. and. if applicable. their
corporate seal to be affixed and duly attested all as of the
day first above written.
CITY OF SAN BERNARDINO
By:
Its: Mayor
ATTEST:
By:
Its: City Clerk
5764u/2266/04
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MANUFACTURERS HANOVER TRUST
COMPANY
By:
Its: Authorized Representative
CONSENT OF THE HOLDER OF EACH
BOND AS REQUIRED BY SECTION 1102
OF THE INDENTURE:
THE CHASE MANHATTAN BANK, N.A.
By:
Its: Authorized Representative
CONSENT OF THE COMPANY AS
REQUIRED BY SECTION 1102 OF THE
INDENTURE:
CENTRAL CITY PROMENADE, a
California Limited Partnership
By:
Mark SChurgin,
General Partner
By:
Rosiland Jonas Schurgin,
General Partner
5764u/2266/04
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CITY OF SAN BERNARDINO
INDUSTRIAL DEVELOPMENT REVENUE BONDS,
SERIES 1984A (CENTRAL CITY PROMENADE PROJECT)
CERTIFICATE OF THE COMPANY
The undersigned as the sole general partners of Central
City Promenade, a California Limited Partnership (the
"Company") hereby certifies that the Company has complied in
all material respects as of the date hereof with the terms and
conditions of the Indenture, as supplemented, the Loan
Agreement, as amended and the Regulatory Agreement, as amended,
and no event of default thereunder has been declared as of the
date hereof. All capitalized terms used herein and not
otherwise defined shall have the meaning given them in the
Indenture relating to the above-referenced financing.
Da~d:
June ,1991
CENTRAL CITY PROMENADE, a
California limited partnership
By:
Mark Schurgin,
General Partner
By:
Rosaland Jonas SChurgin,
General Partner
5766u/2266/04
[FORM OF BOND COUNSEL OPINION]
As of June 1, 1991
City of San Bernardino
San Bernardino, California
Manufacturers Hanover Trust Company
New York, New York
Re: City of San Bernardino, Industrial Development
Revenue Bonds, Series 1984A (Central City
Promenade proiect) (the "Bonds")
Ladies and Gentlemen:
We have acted as counsel for the City of San Bernardino, a
chartered city duly organized and existing under the
Constitution of the State of California and its City Charter,
(the "Issuer"), in connection with the supplementing and
amending of the Indenture and Loan Agreement, as defined below.
In that connection, we have examined originals or copies
certified or otherwise identified to our satisfaction of
(1) the Trust Indenture dated as of December 15, 1984 between
the Issuer and Trust Services of America, Inc., a California
corporation as succeeded by Manufacturers Hanover Trust Company
(the "Trustee") (the "Indenture"); (2) the Loan Agreement dated
as of December 15, 1984 between the Issuer and Central City
Promenade, a California limited partnership (the "Company")
(the "Loan Agreement"); (3) Supplement No. One to the Indenture
dated as of November 30, 1989 between the Issuer and the
Trustee; (4) Amendment No. One to the Loan Agreement dated as
of November 30, 1989 between the Issuer and the Company; (5)
Supplement No. Two to the Indenture dated, as of February 19,
1990 between the Issuer and the Trustee;
City of San Bernardino
Manufacturers Hanover Trust Company
As of June 1, 1991
Page Two
(6) Amendment No. Two to the Loan Agreement dated as of
February 19, 1990 between the Issuer and the Company; (7)
Supplement No. Three to the Indenture dated as of August 24,
1990 between the Issuer and the Trustee; (8) Amendment No.
Three to the Loan Agreement dated as of August 24, 1990 between
the Issuer and the Company; (9) Supplement No. Four to the
Indenture dated as of February 1, 1991 between the Issuer and
the Trustee; (10) Amendment No. Four to the Loan Agreement
dated as of February 1, 1991 between the Issuer and the
Company; (11) Supplement No. Five to the Indenture dated as of
June 1, 1991 between the Issuer and the Trustee (the
.Supplement No. Five.); (12) Amendment No. Five to the Loan
Agreement dated as of June 1, 1991 between the Issuer and the
Company (the .Amendment No. Five.) and (13) the Internal
Revenue Code of 1986, as amended, and such regulations, revenue
rulings and private letter rulings promulgated or issued
thereunder (the .Code.) and predecessor statutes as we have
deemed relevant to the rendering of this opinion. For purposes
of the opinions rendered below, we have assumed, without
investigation, that the above-described documents represent all
agreements among the Bondholders and all other parties to the
transactions contemplated by the Indenture, as amended, and
Loan Agreement, as amended.
Based upon our examination of the foregoing, and in
reliance thereon, and on allegations of fact as we deem
relevant under the circumstances, we are of the opinion that:
1. The execution and delivery of the Amendment No. Five
and the Supplement No. Five have been authorized by
the Issuer and, assuming proper authorization,
execution and delivery by the respective other parties
thereto, including parties consenting thereto, are
valid and binding Obligations of the Issuer
enforceable in accordance with their terms, except to
the extent that enforceability may be limited by
moratorium, bankruptcy, reorganization, insolvency or
other laws affecting creditors' rights generally or by
the exercise of judicial discretion in accordance with
general principles of equity.
2. Assuming that interest on the Bonds is exempt from
federal income taxation currently, the Supplement No.
Five and the Amendment No. Five will not cause
interest on the Bonds to cease to be exempt from gross
income for purposes of federal income taxation or from
personal income taxes imposed by the State of
California.
City of San Bernardino
Manufacturers Hanover Trust Company
As of June 1, 1991
Page Three
We note that this office did not serve as bond counsel in
connection with the original issuance of the Bonds and has at
no time rendered an opinion regarding the exemption from
federal or State income taxation of interest on the Bonds. We
have not reviewed the documents or any underlying facts or
circumstances relative to the tax exempt status of interest on
the Bonds either at the date of original issuance of the Bonds
or at any time since such date. Moreover, in order for
interest on the Bonds to remain exempt from federal income
taxation subsequent to the bond issuance date, it is necessary
that the provisions of Section 103(b)(6)(D), among others, of
the Internal Revenue Code of 1954, as amended, be complied with
on a continuous basis. Because we have made no independent
investigation as to whether there has been such compliance in
the present case, for purposes of this opinion, we have assumed
that interest on the Bonds is exempt from federal income
taxation and State of California personal income taxation as of
the date of this opinion and express no opinion as to whether
interest on the Bonds is presently exempt from federal income
taxation or State of California personal income taxation. We
have not undertaken to verify through independent investigation
the accuracy of the representations made to us or of the
foregoing assumptions made by us in rendering this opinion.
The opinions expressed herein may be relied upon by the
addressees of this opinion and may not be relied upon by any
other party.
Respectfully submitted,
5769u/2266/04
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CITY OF SAN BERNARDINO
INDUSTRIAL DEVELOPMENT REVENUE BONDS
(CENTRAL CITY PROMENADE PROJECT)
SERIES 1984A
.
DOCUMENT INDEX
l. Supplement No. Five to the Indenture.
. 2 . Amendment No. Five to the Loan Agreement.
3 . Resolution Number 91-261 of the City.
4 . Resolution Number 91-262 of the City.
. 5. Certificate of the Company.
6. Opinion of Counsel for the City.
7. Opinion of Counsel for the Developer.
.
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SUPPLEMENT NO. FIVE TO THE INDENTURE
.
!.
This Supplement No. Five to the Trust Indenture, as
supplemented, dated as of December 15, 1984 between the City of
San Bernardino, a chartered city duly organized and existing
under the Constitution of the State of California and its City
Charter (the "Issuer") and Trust Services of America, Inc., a
California corporation, as succeeded by Manufacturers Hanover
Trust Company (the "Trustee") (the "Indenture") is made and
entered into as of June 1, 1991 between the Issuer and the
Trustee, with the consent of The Chase Manhattan Bank, N.A.
(the "purchaser"), and Central City Promenade, a California
1 imited partnership (the "Company"), (the "Supplement").
Capitalized terms used in this Supplement and not otherwise
defined shall have the same meaning as in the Indenture.
'.
WIT N E SSE T H:
.
WHEREAS, Section 1102 of the Indenture provides that the
Issuer and the Trustee may supplement the Indenture "as shall
be deemed necessary and desirable by the Issuer or the Trustee
for the purpose of modifying, altering, amending, adding to or
rescinding, in any particular, any of the terms or provisions
contained. . .[therein] or in any supplemental indenture;
provided, however, that nothing contained in . . .
Section [1102] shall permit, or be construed as permitting,
without the consent of the Holder or Owner of every bond,
(i) an extension of the maturity of the principal of or the
interest thereon or of any redemption dates from the Bond Fund
."; and
.
.
WHEREAS, the Purchaser is the "Holder or Owner of every
Bond"; and
WHEREAS, the Trustee or Issuer has deemed it "necessary and
desirable" to modify the Indenture; and
.
WHEREAS, Section 1102 of the Indenture provides further
that "a supplemental indenture . . . which affects the rights
of the Company shall not become effective unless and until the
Company shall have consented to the adoption of such
supplemental indenture"; and
.
WHEREAS, this Supplement "affects the rights of the
Company"; and
.
WHEREAS, Section 301(d) of the Indenture provides that
"prior to the Conversion Date, the Bonds are subject to
mandatory redemption, in whole, on July 1, 1991. . . unless the
Purchaser shall have given notice in writing to the
.
.
.
Issuer, the Trustee and the Company, stating that such
redemption shall be waived, at least forty-five (45) but no
more than sixty (60) days prior to each such redemption date";
and
WHEREAS, the Purchaser and the Company desire to further
amend Section 301(d) of the Indenture to provide the necessary
time to supplement possibly further the Indenture.
.
NOW, THEREFORE, in consideration of the mutual covenants
and undertaking set forth herein, and other good and valuable
consideration, the receipt and sUfficiency of which hereby are
acknowledged, the Issuer and the Trustee hereby agree as
follows:
.
1. Section 301(d) of the Indenture is amended and
restated as follows:
.
"(d) Redemption Upon Demand Of
Purchaser. Prior to the Conversion Date, the
Bonds are subject to mandatory redemption, in
whole, on January 1, 1992, and on December 1,
1995 and on each fifth December 1 thereafter
until maturity, at a price equal to the
principal amount of Outstanding Bonds plus
accrued interest to the Redemption Date,
without premium, unless the Purchaser shall
have given notice in writing to the Issuer,
the Trustee and the Company, stating that such
redemption shall be waived, at least
forty-five (45) but no more than sixty (60)
days prior to each such redemption date."
.
.
2. This Supplement may be executed in several
counterparts, each of which shall be an original and all of
which shall constitute but one and the same instrument.
.
IN WITNESS WHEREOF, the parties hereto have caused this
Supplement to the Indenture to be executed on their behalf by
their duly authorized officers, and, if applicable, their
corporate seal to be affixed and duly attested all as of the
day first above written.
By:
Its:
.
CITY OF SAN
.
ATTEST:
By: ~~~'-<--~1_
Its: ity ClerK c1
.
5764u/2266/04
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MANUFACTURERS HANOVER TRUST
COMPANY
.
~~~
By: ,~_
Its: Authorized Repres ative
CONSENT OF THE HOLDER OF EACH
BOND AS REQUIRED BY SECTION 1102
OF THE INDENTURE:
.
THE CHASE MANHATTAN BANK, N.A.
.
By:
Its: Authorized Representative
CONSENT OF THE COMPANY AS
REQUIRED BY SECTION 1102 OF THE
INDENTURE:
.
CENTRAL CITY PROMENADE, a
California Limited Partnership
.
By:
Mark Schurgin,
General Partner
By:
.
Rosiland Jonas Schurgin,
General Partner
.
I
:.
.
5764u/2266/04
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MANUFACTURERS HANOVER TRUST
COMPANY
.
By:
Its: Authorized Representative
CONSENT OF THE HOLDER OF EACH
BOND AS REQUIRED BY SECTION 1102
OF THE INDENTURE:
.
MANHATTAN BANK, N.A.
~. /t/(/I----
THE CHASE
By:
Its:
.
CONSENT OF THE COMPANY AS
REQUIRED BY SECTION 1102 OF THE
INDENTURE:
.
CENTRAL CITY PROMENADE, a
California Limited Partnership
By:
.
Mark Schurgin,
General Partner
By:
Rosiland Jonas Schurgin,
General Partner
.
.
.
.
5764u/2266/04
.
.
MANUFACTURERS HANOVER TRUST
COMPANY
.
By:
Its: Authorized Representative
CONSENT OF THE HOLDER OF EACH
BOND AS REQUIRED BY SECTION 1102
OF THE INDENTURE:
.
THE CHASE MANHATTAN BANK, N.A.
By:
Its: Authorized Representative
.
CONSENT OF THE COMPANY AS
REQUIRED BY SECTION 1102 OF THE
INDENTURE:
.
CENTRAL CITY PRO ENADE, a
California Limo ed Partnership
By:
. rgin,
artner
By: ~.
Rosiland Jon
. General Partner
.
.
.
5764u/2266/04
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AMENDMENT NO. FIVE TO THE LOAN AGREEMENT
.
.
This Amendment No. Five to the Loan Agreement, as amended,
as of December 15, 1984 between the City of San Bernardino, a
chartered city duly organized and existing under the
Constitution of the State of California and its City Charter
(the "Issuer") and Central City Promenade, a California Limited
Partnership (the "Company"), (the "Loan Agreement") is made and
entered into as of June 1, 1991 between the Issuer and the
Company, with the consent of Manufacturers Hanover Trust
Company, as successor to Trust Services of America, Inc., a
California corporation (the "Trustee"), and The Chase Manhattan
Bank, N.A. (the "Purchaser"), (the "Amendment"). Capitalized
terms used in this Amendment and not otherwise defined shall
have the same meaning as in the Loan Agreement.
.
WIT N E SSE T H:
.
WHEREAS, Section 9.06 of the Loan Agreement provides that
the Issuer and the Company may supplement the Loan Agreement
with the consent of the Trustee; and
.
WHEREAS, Section 1202 of the Trust Indenture dated as of
December 15, 1984 between the Issuer and the Trustee (the
"Indenture") provides that "neither the Issuer nor the Trustee
shall consent to any . . . amendment of the Loan Agreement
. . . without publication of notice and mailing and the written
approval or consent of the Holder and Owners of not less than
one hundred percent (100%) in aggregate principal amount of the
Bonds ..."; and
.
WHEREAS, the Purchaser is the "Holder or Owner of every
Bond"; and
.
WHEREAS, the Purchaser's consent to this Amendment as
indicated by its execution of this Amendment is sufficient to
meet the consent and notice requirements of Section 1202 of the
Indenture; and
.
WHEREAS, Section 6.03(c) of the Loan Agreement provides
that "prior to the Conversion Date, the Note is subject to
Mandatory Prepayment, in whole, on July 1, 1991 . . . unless
the Purchaser has given notice in writing evidencing its waiver
of such redemption at least forty-five (45) days, but no more
than sixty (60) days, prior to such Redemption Date to the
Issuer, the Trustee and the Company"; and
.
WHEREAS, the Company and the Purchaser desire to amend
Section 6.03(c) of the Loan Agreement to provide the necessary
time to amend possibly further the Loan Agreement.
.
.
.
!
NOW, THEREFORE, in consideration of the mutual covenants
and undertaking set forth herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the Issuer and the Trustee hereby agree as
follows:
1. Section 6.03(c) of the Loan Agreement is amended and
restated as follows:
.
.
"(c) Mandatory Prepayment Upon Demand of
Purchaser. Prior to the Conversion Date, the
Note is subject to mandatory prepayment, in
whole, on January 1, 1992, and on December 1,
1995 and on each fifth December 1 thereafter
until maturity, at a price equal to the
principal amount of Outstanding Bonds plus
accrued interest to the date of prepayment,
without premium, unless the Purchaser shall
have given notice in writing evidencing its
waiver of such redemption, at least forty-five
(45) days, but no more than sixty (60) days,
prior to each such Redemption Date to the
Issuer, the Trustee and the Company,"
'.
.
2. This Amendment may be executed in several
counterparts, each of which shall be an original and all of
which shall constitute but one and the same instrument.
.
IN WITNESS WHEREOF, the parties hereto have caused this
Amendment to the Loan Agreement to be executed on their behalf
by their duly authorized officers, and, if applicable, their
corporate seal to be affixed and duly attested all as of the
day first above written.~;
//
.
;7
ATTEST:
.
By: ~~,~
Its: Cl y Clerk
.
.
5765u/2266/04
.
CENTRAL CITY PROMENADE, a
California Ii "ted partnership
.
By:
donas Schurgin,
al Partner
.
By:
.
CONSENT OF THE TRUSTEE AS
REQUIRED BY SECTION 9.06 OF THE
LOAN AGREEMENT:
.
MANUFACTURERS HANOVER TRUST
COMPANY
By:
Its: Authorized Representative
.
CONSENT OF THE HOLDER OF EACH
BOND AS REQUIRED BY SECTION 1102
OF THE INDENTURE:
.
THE CHASE MANHATTAN BANK, N.A.
By:
Its: Authorized Representative
.
.
.
.
5765u12266/04
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CENTRAL CITY PROMENADE, a
California limited partnership
.
By:
Mark Schurgin,
General Partner
.
By:
Rosaland Jonas Schurgin,
General Partner
.
CONSENT OF THE TRUSTEE AS
REQUIRED BY SECTION 9.06 OF THE
LOAN AGREEMENT:
.
MANUFACTURERS HANOVER TRUST
COMPANY
BY:~~~
Its: Authorized Represen lve
.
CONSENT OF THE HOLDER OF EACH
BOND AS REQUIRED BY SECTION 1102
OF THE INDENTURE:
.
THE CHASE MANHATTAN BANK, N.A.
By:
Its: Authorized Representative
.
.
.
.
5765u/2266/04
.
CENTRAL CITY PROMENADE, a
California limited partnership
.
By:
Mark Schurgin,
General Partner
.
By:
Rosaland Jonas SChurgin,
General Partner
.
CONSENT OF THE TRUSTEE AS
REQUIRED BY SECTION 9.06 OF THE
LOAN AGREEMENT:
.
MANUFACTURERS HANOVER TRUST
COMPANY
By:
Its: Authorized Representative
.
CONSENT OF THE HOLDER OF EACH
BOND AS REQUIRED BY SECTION 1102
OF THE INDENTURE:
.
THE CHASE MANHATTAN BANK, N.A.
By: ~ /~../U:/L
Its :/ '" Authorized Representative
.
.
.
.
5765u/2266/04
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RESOLUTION NO. 91-261
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AUTHORIZING THE EXECUTION OF AMENDMENT NO. FIVE TO
THE LOAN AGREEMENT RELATING TO CENTRAL CITY PROMENADE,
NOW, THEREFORE, BE IT RESOLVED BY THE MAyOR AND COMMON
COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1.
The Mayor of the City of San Bernardino is
hereby authorized and directed to execute Amendment No. Five to the
Loan Agreement between the City of San Bernardino and Central City
Promenade, in the form of a copy of said Amendment attached hereto
as Exhibit "A".
SECTION 2.
Said Amendment shall not take effect until
fully signed and executed by all parties. The City shall not be
obligated hereunder unless and until the Amendment is fully
executed and no oral agreement relating thereto shall be implied or
authorized.
Section 3.
This resolution is rescinded if the parties
to the Amendment fail to execute it within sixty (60) days of the
passage of this resolution.
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DAB:bl: 1472A
June 13, 1991
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RESOLUTION.. .AUTHORIZING THE EXECUTION.. .RELATING TO
CENTRAL CITY PROMENADE.
I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Mayor and Common Council Jf the City of San
Bernardino at a requ1ar
meeting thereof, held on the 17th
, 1991, by the following vote, to wit:
day of June
Council Members:
ESTRADA
REILLY
HERNANDEZ
MAUDSLEY
MINOR
POPE-LUDLAM
MILLER
AYES
NAYS
ABSTAIN
~
x
~
~
x
x
x
~~
The foregoing resolution is hereby approved this 20th
day of
, 1991.
June
Approved as to
form and legal content:
JAMES F. PENMAN,
City Attorney
~
DAB:bl: 1472A
June 13, 1991
~,qJy( '71{t1-~
ToM MIIIOR, MAYOR PRO TEMPORE
City of San Bernardino
- 2 -
.
EXHIBIT A
AMENDMENT NO. FIVE TO THE LOAN AGREEMENT
.
.
This Amendment No. Five to the Loan Agreement, as amended,
as of December IS, 1984 between the City of San Bernardino, a
chartered city duly organized and existing under the
Constitution of the State of California and its City Charter
(the wIssuerW) and Central City Promenade, a California Limited
Partnership (the wCompanyW), (the wLoan AgreementW) is made and
entered into as of June I, 1991 between the Issuer and the
Company, with the consent of Manufacturers Hanover Trust
Company, as successor to Trust Services of America, Inc., a
California corporation (the wTrusteeW), and The Chase Manhattan
Bank, N.A. (the wPurchaserW), (the wAmendmentW). Capitalized
terms used in this Amendment and not otherwise defined shall
have the same meaning as in the Loan Agreement.
.
WIT N E SSE T H:
.
WHEREAS, Section 9.06 of the Loan Agreement provides that
the Issuer and the Company may supplement the Loan Agreement
with the consent of the Trustee; and
.
WHEREAS, Section 1202 of the Trust Indenture dated as of
December 15, 1984 between the Issuer and the Trustee (the
wIndentureW) provides that wneither the Issuer nor the Trustee
shall consent to any . . . amendment of the Loan Agreement
. . . without publication of notice and mailing and the written
approval or consent of the Holder and Owners of not less than
one hundred percent (100\) in aggregate principal amount of the
Bonds . . . w; and
.
WHEREAS, the Purchaser is the wHolder or Owner of every
Bondw; and
.
WHEREAS, the Purchaser's consent to this Amendment as
indicated by its execution of this Amendment is sufficient to
meet the consent and notice requirements of Section 1202 of the
Indenture; and
.
WHEREAS, Section 6.03(c) of the Loan Agreement provides
that .prior to the Conversion Date, the Note is sUbject to
Mandatory Prepayment, in whole, on July I, 1991 . . . unless
the Purchaser has given notice in writing evidencing its waiver
of such redemption at least fOrty-five (45) days, but no more
than sixty (60) days, prior to such Redemption Date to the
Issuer, the Trustee and the CompanyW; and
.
WHEREAS, the Company and the Purchaser desire to amend
Section 6.03(c) of the Loan Agreement to provide the necessary
time to amend possibly further the Loan Agreement.
.
.
.
NOW, THEREFORE, in consideration of the mutual covenants
and undertaking set forth herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the Issuer and the Trustee hereby agree as
follows:
.
1. Section 6.03(c) of the Loan Agreement is amended and
restated as follows:
.
-(c) Mandatorv Prepayment Upon Demand of
Purchaser. Prior to the Conversion Date, the
Note is subject to mandatory prepayment, in
whole, on January I, 1992, and on December 1,
1995 and on each fifth December 1 thereafter
until maturity, at a price equal to the
principal amount of Outstanding Bonds plus
accrued interest to the date of prepayment,
without premium, unless the Purchaser shall
have given notice in writing evidencing its
waiver of such redemption, at least forty-five
(45) days, but no more than sixty (60) days,
prior to each such Redemption Date to the
Issuer, the Trustee and the Company."
.
.
2. This Amendment may be executed in several
counterparts, each of which shall be an original and all of
which shall constitute but one and the same instrument.
.
IN WITNESS WHEREOF, the parties hereto have caused this
Amendment to the Loan Agreement to be executed on their behalf
by their duly authorized officers, and, if applicable, their
corporate seal to be affixed and duly attested all as of the
day first above written.
CITY OF SAN BERNARDINO
.
By:
Its: Mayor
ATTEST:
.
By:
Its: City Clerk
.
.
5765u/2266/04
r.
! '
.
CENTRAL CITY PROMENADE, a
California limited partnership
By:
Mark Schurgin,
General Partner
;.
By:
Rosaland Jonas SChurgin,
General Partner
I.
CONSENT OF THE TRUSTEE AS
REQUIRED BY SECTION 9.06 OF THE
LOAN AGREEMENT:
.
MANUFACTURERS HANOVER TRUST
COMPANY
.
By:
Its: Authorized Representative
CONSENT OF THE HOLDER OF EACH
BOND AS REQUIRED BY SECTION 1102
OF THE INDENTURE:
.
THE CHASE MANHATTAN BANK, N.A.
.
By:
Its: Authorized Representative
.
.
.
5765u/2266/04
.
.
1
2
:I
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7
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.
.
RESOLUTION NO. 91-262
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AUTHORIZING THE EXECUTION OF SUPPLEMENT NO. FIVE TO
THE INDENTURE RELATING TO CENTRAL CITY PROMENADE.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON
COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS;
SECTION 1.
The Mayor of the City of San Bernardino is
hereby authorized and directed to execute Supplement No. Five to the
Indenture between the City of San Bernardino and Central City
Promenade, in the form of a copy of said Supplement attached hereto
as Exhibit "A".
SECTION 2. Said Supplement shall not take effect until
fully signed and executed by all parties. The City shall not be
obligated hereunder unless and until the Supplement is fully
executed and no oral agreement relating thereto shall be impl ied or
authorized.
Section 3. This resolution is rescinded if the parties
to the Supplement fail to execute it within sixty (60) days of the
passage of this resolution.
I I I
i ; i
I
I I
I I I
I I I
I I I
I I I
I I /
/
/ /
DAB: b 1 : 14 73A
June 13, 1991
-1 -
I-~
.
1
.
2
3
4
.
5
6
i
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8
9
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10
11
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13
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15
16 II
I
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19,
20
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23
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25
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26
27
28
.
RESOLUTION.. .AUTHORIZING THE EXECUTION OF SUPPLEMENT...
RELATING TO CENTRAL CITY PROMENADE.
I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Mayor and Common Council of the City of San
Bernardino at a regular
meeting thereof, held on the 17th
day of
, 1991, by the following vote, to wit:
June
Council Members:
AYES
NAYS
ABSTAIN
ESTRADA
x
RE I LL Y
x
HERNANDEZ
MAUDSLEY
MINOR
x
x
x
POPE-LUDLAM
MILLER
x
x
~~~
Cit 1 erk
The foregoing resolution is hereby approved this 20th
day of
, 1991.
.~~ ~j~
TOM MIHOR, MAYOR PRO TEMPORE
City of San Bernardino
June
Approved as to
form and legal content:
JAMES F. PENHAN,
City Attorney
;/~~J
DAB: b 1 : 14 73A
June 13, 1991
- 2 -
~
EXHIBIT A
SUPPLEMENT NO. FIVE TO THE INDENTURE
.
.
This Supplement No. Five to the Trust Indenture, as
supplemented, dated as of December 15, 1984 between the City of
San Bernardino, a chartered city duly organized and existing
under the Constitution of the State of California and its City
Charter (the "Issuer") and Trust Services of America, Inc., a
California corporation, as succeeded by Manufacturers Hanover
Trust Company (the "Trustee") (the "Indenture") is made and
entered into as of June I, 1991 between the Issuer and the
Trustee, with the consent of The Chase Manhattan Bank, N.A.
(the "Purchaser"), and Central City Promenade, a California
limited partnership (the "Company"), (the "Supplement").
Capitalized terms used in this Supplement and not otherwise
defined shall have the same meaning as in the Indenture.
.
WIT N E SSE T H:
.
WHEREAS, Section 1102 of the Indenture provides that the
Issuer and the Trustee may supplement the Indenture "as shall
be deemed necessary and desirable by the Issuer or the Trustee
for the purpose of modifying, altering, amending, adding to or
rescinding, in any particular, any of the terms or provisions
contained. . . [therein] or in any supplemental indenture;
provided, however, that nothing contained in . . .
Section [1102] shall permit, or be construed as permitting,
without the consent of the Holder or Owner of every bond,
(i) an extension of the maturity of the principal of or the
interest thereon or of any redemption dates from the Bond Fund
. . ."; and
.
.
WHEREAS, the Purchaser is the "Holder or Owner of every
Bond"; and
WHEREAS, the Trustee or Issuer has deemed it .U~C~~~dLY and
.desirable" to modify the Indenture; and
.
WHEREAS, Section 1102 of the Indenture provides further
that "a supplemental indenture . . . which affects the rights
of the Company shall not become effective unless and until the
Company shall have consented to the adoption of such
supplemental indenture"; and
.
WHEREAS, this Supplement "affects the rights of the
Company"; and
.
WHEREAS, Section 30l(d) of the Indenture provides that
"prior to the Conversion Date, the Bonds are sUbject to
mandatory redemption, in whole, on July I, 1991. . . unless the
Purchaser shall have given notice in writing to the
.
.
.
Issuer, the Trustee and the Company, stating that such
redemption shall be waived, at least forty-five (45) but no
more than sixty (60) days prior to each such redemption date";
and
WHEREAS, the Purchaser and the Company desire to further
amend Section 301(d) of the Indenture to provide the necessary
time to supplement possibly further the Indenture.
.
NOW, THEREFORE, in consideration of the mutual covenants
and undertaking set forth herein, and other good and valuable
consideration, the receipt and sUfficiency of which hereby are
acknowledged, the Issuer and the Trustee hereby agree as
follows:
.
1. Section 301(d) of the Indenture is amended and
restated as follows:
.
-(d) Redemption Upon Demand Of
Purchaser. Prior to the Conversion Date, the
Bonds are subject to mandatory redemption, in
whole, on January 1, 1992, and on December 1,
1995 and on each fifth December 1 thereafter
until maturity, at a price equal to the
principal amount of Outstanding Bonds plus
accrued interest to the Redemption Date,
without premium, unless the Purchaser shall
have given notice in writing to the Issuer,
the Trustee and the Company, stating that such
redemption shall be waived, at least
forty-five (45) but no more than sixty (60)
days prior to each such redemption date."
.
.
2. This Supplement may be executed in several
counterparts, each of which shall be an original and all of
which shall constitute but one and the same instrument.
.
IN WITNESS WHEREOF, the parties hereto have caused this
Supplement to the Indenture to be executed on their behalf by
their duly authorized officers, and, if applicable, their
corporate seal to be affixed and duly attested all as of the
day first above written.
.
CITY OF SAN BERNARDINO
By:
Its: Mayor
.
ATTEST:
By:
Its: City Clerk
.
5764u/2266/04
.
.
MANUFACTURERS HANOVER TRUST
COMPANY
.
By:
Its: Authorized Representative
.
CONSENT OF THE HOLDER OF EACH
BOND AS REQUIRED BY SECTION 1102
OF THE INDENTURE:
THE CHASE MANHATTAN BANK, N.A.
.
By:
Its: Authorized Representative
.
CONSENT OF THE COMPANY AS
REQUIRED BY SECTION 1102 OF THE
INDENTURE:
CENTRAL CITY PROMENADE, a
California Limited Partnership
.
By:
Mark Schurgin,
General Partner
.
By:
Rosiland Jonas SChurgin,
General Partner
.
,
:.
.
5764u/2266/04
.
.
CITY OF SAN BERNARDINO
INDUSTRIAL DEVELOPMENT REVENUE BONDS,
SERIES 19B4A (CENTRAL CITY PROMENADE PROJECT)
CERTIFICATE OF THE COMPANY
.
The undersigned as the sole general partners of Central
City Promenade, a California Limited Partnership (the
"Company") hereby certifies that the Company has complied in
all material respects as of the date hereof with the terms and
conditions of the Indenture, as supplemented, the Loan
Agreement, as amended and the Regulatory Agreement, as amended,
and no event of default thereunder has been declared as of the
date hereof. All capitalized terms used herein and not
otherwise defined shall have the meaning given them in the
Indenture relating to the above-referenced financing.
.
Dated:
June ,1991
.
CENTRAL CITY PROM NADE, a
California l'mi d partnership
By:
------
Jonas SChurgin,
Partner
.
By:
.
5766u/2266/04
.
.
.
.
l
.
,.RITZ A. STRAOl-ING
I'll leI< E, VOCCA
C. CRAIG CARLSON
WI'-'..IAM R. RAUTH III
K. C. SCHAAF"
RICHARD C. GOODMAN
,JOHN .J. MURPHY
THOMAS P. CLARIl;, .JR.
BEN A. FRYOMAN
DAVID R. MCEWEN
PAUL L. G"LE
RUCOLPH C. SHEPARD
ROBERT J. KANE
M. O. TAl-SOT
BRUCE C. STUART
E. KURT YEAGER
ROBERT .J. WHALEN
ROBERT E. RICH
THOMAS A. PISTONE:
F1",NOAI..L J. SHERMAN
BRUCE W. F"EUCHTER
MARK oJ. HUEBSCH
KAAEN A. ELLIS
ELIZABETH C. GREEN
BRUCE O. MAY
DONALD oJ. HAMMAN
.JOHN .... SWIGART, .JR.
MICHAEL A. ZABL.OCKI
NEIl-A R. l!!lERNSTEIN
eEl-ESTE STAHL BRADY
CHRISTOPHER J. KILPATRICK
,JOEL H. GUTH
.JULIE MCCOY AKINS
DAWN C. HONEYWELL
OWEN B. LUBOW
LAWRENCE. B. COHN
WARREN 8. DIVEN
..JAMES DElCTEFI CLARK
STEPHEN H. LACOUNT
HARL.E:Y 1... B.JEL.LANO
STEPHEN T, F"REEMAN
PERRY..J. TAANOF"SKY
ROBERT A. WIl.SON
l.ISA M. KITS UTA
CHERYl. A. DOW
NICHOl.AS ..J. YOCCA
..JUl.IE M. PORTER
MARl'; T. PAl.l N
ROBERT C. F"UNSTEN
Al.ETA l.OUISE BRYANT
RONAl.D A. VAN Bl.ARCOM
STEPHEN M. MCNAMARA
GARY A. PEMBERTON
..JOHN M. ANTOCI
CAROl. l.. l.EW
..J. MICHAEl. VAUGHN
DENtSE E. HARBAUGH
BARBARA l.. ZEID
ERIC T. SAl.TZMAN
..JON E. GOETZ
Al.AN ..J. I';ESSEl.
GARY P. DOWNS
..JOHN D. IREl.AND
MICHAEl. ..J. PENDERGAST
DAVID H. MANN
GAl.E I. SCHl.ESINGER
CHRISTOPHER M. MOROPOUl.OS
DANA M. I';EZMOH
DARRYl. S. GIBSON
..JOHN G. MCCl.ENDON
TODD R. THAI';AR
RICHARD T. NEEDHAM
ROBERT C. WAl.l.ACE
DAMON C. MOSl.ER
STRADLING, YOCCA, CARLSON & RAUTH
A t=>ROF"ESS10NAL CORPORATION
ATTORNEYS AT LAW
660 NEWPORT CENTER DRIVE, SUITE 1600
POST OF"F"ICE 80X 7680
..JOHN E. BRECKENRIDGE
RENA C. STONE
OF COU"9~"
NEWPORT BEACH, CALIFORNIA a2eeO-e441
TELEt=>HONE (714) 7.25-4000
TELEPHONE (714) 640-70.3~
WRITER'S DIRECT DIAL:
""AX NUMBER
(714) 72S'4100
.
As of June 1,
1991
.
.
City of San Bernardino
San Bernardino, California
Manufacturers Hanover Trust Company
New York, New York
.
Re:
City of San Bernardino, Industrial Development
Revenue Bonds, Series 1984A (Central City
Promenade proiectl (the "Bonds"l
Ladies and Gentlemen:
.
We have acted as counsel for the City of San Bernardino, a
chartered city duly organized and existing under the
Constitution of the State of California and its City Charter,
(the "Issuer"), in connection with the supplementing and
amending of the Indenture and Loan Agreement, as defined below.
.
.
In that connection, we have examined originals or copies
certified or otherwise identified to our satisfaction of
(1) the Trust Indenture dated as of December 15, 1984 between
the Issuer and Trust Services of America, Inc., a California
corporation as succeeded by Manufacturers Hanover Trust Company
(the "Trustee") (the "Indenture"); (2) the Loan Agreement dated
as of December 15, 1984 between the Issuer and Central City
Promenade, a California limited partnership (the "Company")
(the "Loan Agreement"); (3) Supplement No. One to the Indenture
dated as of November 30, 1989 between the Issuer and the
Trustee; (4) Amendment No. One to the Loan Agreement dated as
of November 30, 1989 between the Issuer and the Company; (5)
Supplement No. Two to the Indenture dated, as of February 19,
1990 between the Issuer and the Trustee;
.
.
.
City of San Bernardino
Manufacturers Hanover Trust Company
As of June 1, 1991
Page Two
(6) Amendment No. Two to the Loan Agreement dated as of
February 19, 1990 between the Issuer and the Company; (7)
Supplement No. Three to the Indenture dated as of August 24,
1990 between the Issuer and the Trustee; (8) Amendment No.
Three to the Loan Agreement dated as of August 24, 1990 between
the Issuer and the Company; (9) Supplement No. Four to the
Indenture dated as of February 1, 1991 between the Issuer and
the Trustee; (10) Amendment No. Four to the Loan Agreement
dated as of February 1, 1991 between the Issuer and the
Company; (11) Supplement No. Five to the Indenture dated as of
June 1, 1991 between the Issuer and the Trustee (the
"Supplement No. Five"); (12) Amendment No. Five to the Loan
Agreement dated as of June 1, 1991 between the Issuer and the
Company (the "Amendment No. Five") and (13) the Internal
Revenue Code of 1986, as amended, and such regulations, revenue
rulings and private letter rulings promulgated or issued
thereunder (the "Code") and predecessor statutes as we have
deemed relevant to the rendering of this opinion. For purposes
of the opinions rendered below, we have assumed, without
investigation, that the above-described documents represent all
agreements among the Bondholders and all other parties to the
transactions contemplated by the Indenture, as amended, and
Loan Agreement, as amended.
.
.
.
.
.
Based upon our examination of the foregoing, and in
reliance thereon, and on allegations of fact as we deem
relevant under the circumstances, we are of the opinion that:
.
1.
.
.
.
.
The execution and delivery of the Amendment No. Five
and the Supplement No. Five have been authorized by
the Issuer and, assuming proper authorization,
execution and delivery by the respective other parties
thereto, including parties consenting thereto, are
valid and binding obligations of the Issuer
enforceable in accordance with their terms, except to
the extent that enforceability may be limited by
moratorium, bankruptcy, reorganization, insolvency or
other laws affecting creditors' rights generally or by
the exercise of judicial discretion in accordance with
general principles of equity.
2 .
Assuming that interest on the Bonds is exempt from
federal income taxation currently, the Supplement No.
Five and the Amendment No. Five will not cause
interest on the Bonds to cease to be exempt from gross
income for purposes of federal income taxation or from
personal income taxes imposed by the State of
California.
.
.
City of San Bernardino
Manufacturers Hanover Trust Company
As of June 1, 1991
Page Three
.
We note that this office did not serve as bond counsel in
connection with the original issuance of the Bonds and has at
no time rendered an opinion regarding the exemption from
federal or State income taxation of interest on the Bonds. We
have not reviewed the documents or any underlying facts or
circumstances relative to the tax exempt status of interest on
the Bonds either at the date of original issuance of the Bonds
or at any time since such date. Moreover, in order for
interest on the Bonds to remain exempt from federal income
taxation subsequent to the bond issuance date, it is necessary
that the provisions of Section l03(b)(6)(D), among others, of
the Internal Revenue Code of 1954, as amended, be complied with
on a continuous basis. Because we have made no independent
investigation as to whether there has been such compliance in
the present case, for purposes of this opinion, we have assumed
that interest on the Bonds is exempt from federal income
taxation and State of California personal income taxation as of
the date of this opinion and express no opinion as to whether
interest on the Bonds is presently exempt from federal income
taxation or State of California personal income taxation. We
have not undertaken to verify through independent investigation
the accuracy of the representations made to us or of the
foregoing assumptions made by us in rendering this opinion.
.
.
.
.
The opinions expressed herein may be relied upon by the
addressees of this opinion and may not be relied upon by any
other party.
.
;Jt;;:it~ ~~
.
.
.
5769u/2266/04
.
.
.
.
.
.
.
.
.
.
.
.
. CENTRAL CITY PROMENADE
.
FEDERAL EXPRESS
As of June I, 1991
City of San Bernardino
San Bernardino, California
.
RE:
City of San Bernardino (the "Issuer") Industrial Development Revenue
Bonds - Series 1984 A (Central City Promenade Project) (the "Bonds")
Gentlemen:
.
I am the General Counsel for Central City Promenade, a California Limited Partnership
(the "Borrower"). In my capacity as such General Counsel, I have examined originals or copies
certified or otherwise identified to our satisfaction as being true copies of the following
documents:
I. The Trust Indenture dated as of December 15, 1984 between the Issuer and Trust
Services of America, Inc., a California corporation (the "Trustee") (the
"Indenture");
.
2. The Loan Agreement dated as of December 15, 1984 between the Issuer and
Central City Promenade, a California Limited Partnership (the "Company") (the
"Loan Agreement");
3.
Supplement No. One to the Indenture dated as of November 30, 1989 among the
Issuer, the Trustee and Chase Manhattan Bank, N.A. (the "Purchaser") (the
"Supplement");
.
4. Amendment No. One to the Loan Agreement dated as of November 30, 1989
among the Issuer, the Trustee and the Company (the "Amendment");
5. Amendment No. Two to the Loan Agreement dated as of February 19, 1990;
.
6. Supplement No. Two to the Indenture dated as of February 19, 1990;
7. Amendment No. Three to the Loan Agreement dated as of August 24, 1990;
8. Supplement No. Three to the Indenture dated as of August 24, 1990; and
.
9.
Amendment No. Four to the Loan Agreement dated as of February I, 1991;
10. Supplement No. Four to the Indenture dated as of February I, 1991;
II. Amendment No. Five to the Loan Agreement dated as of June I, 1991;
.
12.
Supplement No. Five to the Indenture dated as of June I, 1991;
13. Certificate of the Company dated June 1991; and
14. The Borrower's Partnership Agreement dated as of May 30, 1984, as amended
(collectively the "Loan Documents").
.
In the course of my examinations, I have assumed the genuiness of all signatures on all
documents and the authenticity of all documents submitted to us as copies. As to questions of
fact material to such opinions, I have, when relevant facts were not independently established,
relied upon certificates of partners, officers or representatives of the Borrower. I have not
independently verified the accuracy of the factual matters contained in such certificates or
.
.
City of San Bernardino
As of June I, 1991
Page 2
.
opinion nor have you requested or required us to undertake any responsibility to independently
verify the accuracy of the factual matters contained in such certificates. However, I have no
actual knowledge that any statement contained in such certificates is inaccurate or misleading in
any material respect. "To the best of my knowledge," as used in this opinion, means to the best of
my actual knowledge without independent inquiry, investigation or verification of any facts and
without any obligation imposed by you or otherwise to make any independent inquiry,
investigation or verification of any facts.
.
Furthermore, the use of the term "enforceable" below shall not imply an opinion by me as
to the availability of specific performance or other equitable remedies. I further advise you that
enforcement of your rights and remedies must be undertaken in a commercially reasonable
manner and may be additionally limited by bankruptcy, insolvency, reorganization, moratorium
or similar laws or equitable principles relating to or affecting the rights of creditors generally.
.
In giving this opinion, I advise you that a California court may not strictly enforce certain
covenants or allow acceleration of the maturity of the indebtedness if it concludes that such
enforcement or acceleration (i) would be unreasonable or (ii) would violate the lender's implied
covenant of good faith and fair dealing under the then-existing circumstances.
.
On the basis of such examination and assumptions, and subject to the qualifications and
limitations set forth herein, I am of the opinion that:
.
.
.
.
.
I. The Borrower has been duly organized and validly exists as a limited partnership
under the laws of the State of California and has the power and authority to enter
in into the transactions contemplated by the Loan Documents.
2.
To the best of my knowledge, there are no actions, suits or proceedings at law or
in equity (including, without limitation, condemnation or eminent domain
proceedings) currently pending against or affecting Borrower or involving the
validity or enforceability of the Loan Documents or for or by any governmental
authority having or exercising jurisdiction over the Borrower. To the best of my
knowledge, Borrower is not in default with respect to any order, writ, injunction,
decree or demand of any court or any governmental authority having or exercising
jurisdiction over Borrower.
3.
To the best of my knowledge, the consummation of the transactions contemplated
by the Loan Documents and the performance by Borrower of its obligations under
the Loan Documents will not result in any breach of, or constitute a default under,
any mortgage, deed of trust, lease, bank loan or security agreement, or any other
instrument to which Borrower is a party or by which Borrower may be bound or
affected.
4.
Borrower has full power and authority to execute the Loan Documents to which it
is a party and to undertake and consummate the transactions contemplated
thereby, and to pay, perform and observe the conditions, covenants, agreements
and obligations herein and therein contained; and the Loan Documents to which it
is a party have been duly and validly executed by Borrower. The Loan
Documents, subject to the qualifications listed herein, constitute the legal, valid
and binding obligations of Borrower, and are enforceable under the laws of the
State of California in accordance with their respective terms.
.
3425 McLaughlin Avenue. Los Angeles. CA 90066
(213) 391-1200 Fax: (213) 390-3660
.
City of San Bernardino
As of June I, 1991
Page 3
.
.
This opinion letter should not be used or relied upon by any other person or entity or in
any other connection, and is not to be quoted in whole or in part in any letter or document
without the prior written consent of the undersigned. The opinions set forth in this letter are
rendered as of the date of this letter, and we disclaim any undertaking to advise you of any
changes that may be brought to our attention subsequent to that date.
~
trUIY~~'
J ~ ... .
R hard S. Arfa
Vice President and
General Counsel
.
.
.
.
.
.
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3425 McLaughlin Avenue. Los Angeles, CA 90066
(213) 391-1200 Fax: (213) 390-3660
.