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CSG Advisors Incorporated January 28, 2015 Proposal: Housing Financial Analytical and Advisory Services Page 16 of 25 not in the particular interest of the issuer (as subordinate lender). Issuer Protection on Unrated Bonds. With the compression of yield spreads between highly rated and unrated debt, borrowers often suggest that the public agency issue unrated bonds to multiple buyers. We have helped many agencies establish policies to prohibit or highly constrain such bond issues. Examples of the protections we have helped build include: no more than one bond owner, sophisticated investor letter from the original purchaser and any subsequent purchaser, and — perhaps most innovative -- a provision that the issuer can never be in default on the bonds; rather the bondholder can cause the bonds to be redeemed by having the trustee simply assign all assets to the bondholder. We have helped negotiate these protections in issues sold to Bank of America, Cltigroup, GE Capital, a Merrill Lynch bond fund, U.S. Bank, Welts Fargo and other major purchasers. Outstanding Bond Issues. Many underwriters and financial advisors focus primarily on issuance of new bonds. In contrast, CSG recognizes the importance of ongoing management. We are available for follow -up work with public agency staff and bond trustees to better understand and manage outstanding debt, and to assure compliance with indenture / loan agreement / and other provisions. We do not charge separately for this work unless there are major changes to the transaction (like the potential need for a work -out or to deal with amendments to outstanding bonds). In addition, CSG has helped more than a dozen issuers to: • Address remaining regulatory restrictions and fee payments due to the City when the borrower may want to prepay the outstanding bonds, for Orange County, Hayward, Anaheim and many other issuers, • Avoid potential bond defaults for Denver, Oklahoma, Pasadena and Phoenix, • Review potential opportunities to refund old bonds at lower rates, with a renewed regulatory period on behalf of the City, • Sell whole loans and securities for clients including Los Angeles County, Orange County, Washington State, and the University of California, Evaluate residual assets from prior bond issues that can be released to the issuer, including for the "Southern California Home Finance Authority, City of Los Angeles, Cooney of Los Angeles, Orange County, Contra Costa County, Sacramento County, and City of San Francisco. Housing Financial Analytic Services Our aim in this work is to provide the level of assistance requested by our individual client, to help assure the most effective use of staff as well as to be cost - effective for the clients given needs. Our aim is to provide whatever support and training will best help the client. Examples of this approach include: Sharing the skills and strategies with the client's staff as the work proceeds. For example, we played a major role in drafting RFP's for developers and tax credit investors in the early years of our involvement with the San Francisco Housing Authority on its HOPE VI projects. We have done similar work more recently for the housing authorities of the County of Monterey and Santa Clara, with the staff of the those agencies taking on greater roles and responsibilities as their skills grew with each transaction. • Providing formal training on bonds, tax credits and affordable housing finance. We have clone this for numerous public agencies, including the San Francisco Mayor's Office of 25C -61