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governmental agencies to issue recovery zone economic development <br />bonds ( "Recovery Zone Economic Development Bonds ") upon compliance <br />with various requirements of the Code; <br />among other requirements, the Code requires that the net proceeds of any <br />Recovery Zone Economic Development Bonds be used for a "qualified <br />economic development purpose," including to fund capital expenditures <br />paid or incurred with respect to property located in a "recovery zone;" <br />on August 17, 2009, the City Council of the City of Santa Ana (the "City ") <br />adopted Resolution No. 2009 -046, designating the City as a "recovery <br />zone" (the "Santa Ana Recovery Zone ") for purposes of section 14000- <br />1(b) of the Code; <br />K. under the Federal Stimulus Act, the City has been allocated the authority <br />to issue up to $5,872,000 principal amount of Recovery Zone Economic <br />Development Bonds; <br />L. to finance the 2010 Project, which will promote development or other <br />economic activity in the Santa Ana Recovery Zone, as contemplated by <br />section 14000 -2(c) of the Code, the Agency has determined to issue its <br />Community Redevelopment Agency of the City of Santa Ana Tax <br />Allocation Bonds (Merged Project Area — Taxable Recovery Zone <br />Economic Development Bonds), 2010 Series B, in the aggregate principal <br />amount of not to exceed $5,870,000 (the "2010B Bonds" and, with the <br />2010A Bonds, the "2010 Bonds "), under the provisions of the <br />Redevelopment Bond Law; <br />M. the 2010B Bonds will be issued as bonds the interest on which is not <br />excluded from gross income for purposes of federal income taxation; <br />N. the Agency expects to receive a cash subsidy payment from the United <br />States Treasury equal to 45% of the interest payable on the 2010B Bonds; <br />O. the 2010 Bonds will be secured by a pledge of and lien on certain tax <br />increment revenues allocated to the Agency for the Redevelopment <br />Projects; and <br />P. the Authority has duly considered such transactions and wishes at this <br />time to approve the form and authorize execution of escrow agreements <br />relating to the refunding of the 1998 Bonds and to authorize the purchase <br />and sale of the 2010B Bonds and to approve the form and authorize <br />execution of a bond purchase agreement in connection therewith; <br />Resolution No. SAFA 2010 - <br />8OA -18 Page 3 of 2 <br />