2009-053 - Seller's Proposition 1A Recievable From the State

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from the proceeds of the Seller's Proposition lA Receivable and other Proposition lA Receivables sold to the Purchaser by local agencies in connection with the issuance of the Bonds; WHEREAS, the Seller acknowledges that (i) any transfer of its Proposition lA Receivable to the Purchaser pursuant to the Sale Agreement shall be treated as an absolute sale and transfer of the property so transferred and not as a pledge or grant of a security interest by tli ~ _ ~ to secure a borrowing, (ii) any such sale of its Proposition lA Receivable to the Purchaser shall automatically be perfected without the need for physical delivery, recordation, filing or further act, (iii) the provisions of Division 9 (commencing with Section 9101) of the California Commercial Code and Sections 954.5 to 955.1 of the California Civil Code, inclusive, shall not apply to the sale of its Proposition lA Receivable, and (iv) after such transfer, the Seller shall have no right, title, or interest in or to the Proposition lA Receivable sold to the Purchaser and the Proposition lA Receivable will thereafter be owned, received, held and disbursed only by the Purchaser or a trustee or agent appointed by the Purchaser; WHEREAS, the Seller acknowledges that the Purchaser will grant a security interest in the Proposition lA Receivable to the Trustee and any credit enhancer to secure payment of the Bonds; WHEREAS, a portion of the proceeds of the Bonds will be used by the Purchaser to, among other things, pay the purchase price of the Proposition lA Receivable; WHEREAS, the Seller will use the proceeds received from the sale of the Proposition lA Receivable for any lawful purpose as permitted under the applicable laws of the State; NOW THEREFORE, the of the hereby resolves as follows: Section 1. All of the recitals set forth above are true and correct, and this ~`r hereby so finds and determines. Section 2. The Seller hereby authorizes the sale of the Proposition lA Receivable to the Purchaser for a price equal to the amount certified as the Initial Amount (as defined in the Sale Agreement) b the County auditor pursuant to the Act. The form of Sale Agreement presented to the is hereby approved. An Authorized Officer (as set forth in Appendix A of this Resolution, attached hereto and by this reference incorporated herein) is hereby authorized and directed to execute and deliver the Sale Agreement on behalf of the Seller, which shall be in the form presented at this meeting. Section 3. Any Authorized Officer is hereby authorized and directed to send, or to cause to be sent, an irrevocable written instruction to the State Controller (the "Irrevocable Written Instruction") notifying the State of the sale of the Proposition lA Receivable and instructing the disbursement pursuant to Section 6588.6(c) of California Government Code of the Proposition lA Receivable to the Trustee, on behalf of the Purchaser, which Irrevocable Written Instruction shall be in the form presented at this meeting.