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<br /> a> o PRELIMINARY OFFICIAL STATEMENT DATED .IDLY 10, 1996
<br /> x :,.,
<br /> NEW ISSUE: FULL BOOK-ENTRY RATINGS:
<br /> Standard & Poor's: "AAA"
<br /> Q- ".� Moody's: "Aaa"
<br /> MBIA Insured
<br /> a) Q (See "RATINGS" herein)
<br /> a>
<br /> ro.� J In the opinion of Jones Hall Hill& White, A Professional Law Corporation, San Francisco, California, Bond Counsel, subject, however, to certain
<br /> qualifications described herein,under existing law,the interest on the Bonds is excluded from gross income for federal income tax purposes and such interest is
<br /> .n 4513 not an item of tax preference for purposes of the federal alternative ntininmm7 tax imposed on individuals and corporations, although for the purpose of
<br /> =oCi, computing the alternative minimum tax imposed on certain corporations,such interest is taken into account in determining certain income and earnings.In the
<br /> ca further opinion of Bond Counsel,such interest is exempt from Californianiaa personal income taxes.See"TAX MATTERS"herein.
<br /> u,Ocri. $28,000,000*
<br /> Cr) . COUNTYWIDE PUBLIC FINANCING AUTHORITY
<br /> o O U
<br /> O:- N
<br /> 1996 Revenue Bonds
<br /> E'0 0 Dated as of: Date of Delivery Due: August 1, as shown below
<br /> w, The above-captioned bonds (the"Bonds") are being issued by the Countywide Public Financing Authority(the"Authority"),a joint exercise of powers
<br /> ID
<br /> -o i c authority established by the Cities of Brea, Buena Park, Fullerton, Garden Grove, Orange, Santa Ana, Seal Beach, Stanton and Tustin (collectively, the
<br /> 0 o c "Members"),in accordance with the provisions of Article 1 through 4(commencing with Section 6500)of Chapter 5 of Division 7 of Title 1 of the California
<br /> a,a.,.o Government Code(the"Act").The Bonds will be delivered as fully registered bonds without coupons,and when delivered,will be registered in the name of
<br /> IDCede&Co.,as nominee of the Depository Trust Company,New York,New York("DTC").See"THE BONDS—Book-Entry Only System"herein.
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<br /> c m Payment of the principal of and interest and premium, if any,on the Bonds will be made by U.S.Trust Company of California, N.A.,Los Angeles,
<br /> ca'63a. California,as trustee (the "Trustee") to DTC,which will in turn remit such principal and interest (and premium, if any) to its participants for subsequent
<br /> E o o dispersal to beneficial owners of the Bonds,as described herein.Interest on the Bonds is payable semiannually on each February 1 and August 1,commencing
<br /> ai a February 1,1997.Principal of any Bond and any premium upon redemption will be paid by check of the Trustee upon presentation and surrender thereof at the
<br /> L a,.o corporate trust office of the Trustee in Los Angeles,Califomia.
<br /> c7.>_..- The Bonds are subject to mandatory redemption as described herein under the captions "THE BONDS—Mandatory Redemption from Optional
<br /> ui .� Prepayment of Lease Payments"and"—Special Mandatory Redemption."
<br /> °i 0 o °' The Bonds are being issued and delivered pursuant to an Indenture of Trust,dated as of July 1,1996(the"Indenture"),by and between the Authority and
<br /> 0 the Trustee,and in accordance with the provisions of Article 4 of the Act (the"Bond Law").The proceeds from the sale of the Bonds will be used by the
<br /> o Authority(i) to provide financing for the portions of a County-wide communications system within Orange County allocable to the Members and to finance
<br /> aei 0 Q other capital projects for certain Members within their respective geographical boundaries (collectively,the"Project"), (ii) to fund a Reserve Account,and
<br /> E in (iii) to pay the costs of issuance of the Bonds.In order to provide for the repayment of the Bonds,each Member has agreed to lease certain real property and
<br /> e "- improvements(collectively,the"Leased Premises") to the Authority pursuant to separate Site and Facility Leases,each dated as of July 1,1996 between the
<br /> E•� m Authority,as lessee,and each Member,as lessor(the"Site Leases") and to lease back said Leased Premises from the Authority pursuant to separate Lease
<br /> ca o Agreements,each dated as of July I, 1996 between the Authority,as lessor,and each Member,as lessee (the"Lease Agreements").Pursuant to the Lease
<br /> Q „ Agreements,each Member has agreed to pay installments of rent for the Leased Premises to the Authority(the"Lease Payments")which have been calculated
<br /> co to be sufficient,in the aggregate,to enable the Authority to pay the principal of and interest and premium,if any,on the Bonds when due and payable.See
<br /> •�.•
<br /> o' "DEBT SERVICE FOR THE BONDS"and"APPENDIX A—Summary of Principal Legal Documents—The Lease Agreements"herein.
<br /> o-= Payment of the principal of and interest on the Bonds when due will be guaranteed by a municipal bond insurance policy to be issued by MBIA Insurance
<br /> o ri m Corporation (the"Insurer") concurrently with the delivery of the Bonds.See"MUNICIPAL BOND INSURANCE POLICY"herein.
<br /> LE
<br /> 0 ,_ AiB1A
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<br /> • c The Bonds are special obligations of the Authority payable solely from the revenues pledged under the Indenture as described herein,consisting primarily of
<br /> F).ro the Lease Payments.The Lease Payments are subject to abatement under certain circumstances as described herein.See"SECURITY FOR THE BONDS—
<br /> (0 8.� Lease Payments"and"RISK FACTORS—Abatement"herein.
<br /> cc o Each Member has covenanted under its respective Lease Agreement that it will take such action as may be necessary to include its Lease Payments in its
<br /> e en c" budgets during the term of its Lease Agreement and to make the necessary annual appropriations therefor.Neither the Bonds nor the obligation of each Member
<br /> E to make Lease Payments constitutes an obligation of such Member for which such Member is obligated to levy or pledge any form of taxation or for which such
<br /> s= 2. o Member has levied or pledged any form of taxation.The Authority has no taxing power.Neither the Bonds nor the obligation of each Member to make Lease
<br /> -o-c3 L Payments under its Lease Agrement constitutes a debt of such Member,Orange County,the State of California or any of its political subdivisions within the
<br /> c
<br /> O 0 meaning of any constitutional or statutory debt limitations or restrictions.
<br /> - c cn
<br /> a, MATURITY SCHEDULE*
<br /> C.-= Due Principal Interest Due Principal Interest
<br /> D (August 1) Amount Rate Price (August 1) Amount Rate Price
<br /> c —
<br /> E'- 1997 $1,990,000 2005 $2,980,000
<br /> 0 g 1998 $2,085,000 2006 $3,145,000
<br /> -' .� 1999 $2,175,000 2007 $ 520,000
<br /> =•c' 2000 $2,285,000
<br /> " 2008 $ 545,000
<br /> —
<br /> i '_ 2001 $2,410,000
<br /> '5 2002 $2,530,000 2009 $ 580,000
<br /> 3 a?i c 2003 $2,670,000 2010 $ 615,000
<br /> a > CO 2004 $2,815,000 2011 $ 655,000
<br /> C_
<br /> E) , THIS COVER PAGE CONTAINS CERTAIN INFORMATION FOR QUICK REFERENCE ONLY.IT IS NOT A SUMMARY OF THIS ISSUE.
<br /> m ti.� INVESTORS MUST READ THE ENTIRE OFFICIAL STATEMENT TO OBTAIN INFORMATION ESSENTIAL TO THE MAKING OF AN
<br /> INFORMED INVESTMENT DECISION.
<br /> cu
<br /> To cQn The Bonds will be offered when,as and if delivered to and received by the Underwriter,subject to the approval of their validity and the legality of the Lease
<br /> .5 21 a> Agreements by Jones Hall Hill&White,A Professional Law Corporation,San Francisco,California,Bond Counsel,and certain other conditions.Certain matters
<br /> Ps ,° will be passed upon for the Underwriter by Cox,Castle&Nicholson,LLP,Los Angeles,California,for the Authority by Jones Hall Hill&White,A Professional
<br /> O•
<br /> Law Corporation,San Francisco, California, and for each Member by its City Attorney.It is anticipated that the Bonds will be available for delivery to The
<br /> 73 m 'o Depository Trust Company in New York,New York on or about July 31, 1996.
<br /> .E0 Stone & Youngberg LLC
<br /> m m C° Dated: , 1996 -
<br /> H- • . *Preliminary,subject to change.
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