10A Action 2008 0602 Attach - Official Notice of Sale

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OPTIONAL REDEMPTION: The Bonds maturing on or before September 1, 2018, are not subject to optional redemption prior to maturity. The Bonds maturing on and after September 1, 2019, are subject to redemption, at the option of the Agency, on any date on or after September 1, 2018, as a whole or in part, by such maturities as shall be determined by the Agency, and by lot within a maturity, from any available source of funds, at a redemption price equal to the principal amount of the Bonds to be redeemed, together with accrued interest thereon to the date fixed for redemption. SINKING FUND REDEMPTION; Any bidder may, at its option, specify that one or more maturities of the Bonds will consist of Term Bonds which are subject to mandatory sinking fund redemption in consecutive years immediately preceding the maturity thereof, as designated in the bid of such bidder. In the event that the bid of the successful bidder specifies that any maturity of Bonds will be term Bonds, such term Bonds will be subject to mandatory sinking fund redemption on September 1 in each year so designated in the bid, in the respective amounts for such years as set forth above under the heading "MATURITIES", at a redemption price equal to the principal amount thereof to be redeemed together with accrued interest thereon to the redemption date, without premium. SECURITY; The Bonds are special obligations of the Agency, payable solely from and secured by a first lien on and pledge of the Tax Revenues pledged therefor in the Indenture, and from amounts held in the funds and accounts established under the Indenture. The Bonds are not obligations of the City of San Leandro. The Agency has no direct power of taxation and cannot control the rate of taxation imposed by taxing agencies upon property in the Project Area. Bidders should be aware of certain factors affecting the availability and amount of the Tax Revenues in amounts and at times sufficient to pay the Bonds, and the bidders are referred to the Indenture and the Official Statement for further details. RESERVE ACCOUNT; A Reserve Account for the Bonds will be established and maintained in the amount of the Reserve Requirement being, as of the date of any calculation, the lesser of (a) maximum annual debt service, or (b) one hundred and twenty five percent (125%) of average annual debt service on the Bonds. MUNICIPAL BOND INSURANCE: The issuance and delivery of the Bonds, a _ payment of the principal of and interest premium for such insurance policy. a commitment Agency has received to issue, simultaneously with insurance policy insurin on the Bonds when due. The Agency will pay from the g the the TAX-EXEMPT STATUS; In the opinion of Jones Hall, A Professional Law Corporation, San Francisco, California, Bond Counsel, subject, however to certain qualifications, under existing law, the interest on the Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations, although for the purpose of computing the alternative minimum tax imposed on certain corporations, such interest is taken into account in determining certain income and earnings. -3-