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<br />54 <br />disposition. The amount of original issue premium on a 2018A Bond is amortized each year <br />over the term to maturity of the 2018A Bond on the basis of a constant interest rate <br />compounded on each interest or principal payment date (with straight-line interpolations <br />between compounding dates). Amortized 2018A Bond premium is not deductible for federal <br />income tax purposes. Owners of premium 2018A Bonds, including purchasers who do not <br />purchase in the original offering, should consult their own tax advisors with respect to State of <br />California personal income tax and federal income tax consequences of owning such 2018A <br />Bonds. <br /> California Tax Status. In the further opinion of Bond Counsel, interest on the 2018 <br />Bonds is exempt from California personal income taxes. <br /> Other Tax Considerations. The opinions expressed by Bond Counsel are based upon <br />existing legislation and regulations as interpreted by relevant judicial and regulatory authorities <br />as of the date of such opinion, and Bond Counsel has expressed no opinion with respect to any <br />proposed legislation or as to the tax treatment of interest on the 2018 Bonds, or as to the <br />consequences of owning or receiving interest on the 2018 Bonds, as of any future date. <br />Prospective purchasers of the Bonds should consult their own tax advisors regarding any <br />pending or proposed federal or state tax legislation, regulations or litigation, as to which Bond <br />Counsel expresses no opinion. <br /> <br />Owners of the 2018 Bonds should also be aware that the ownership or disposition of, or <br />the accrual or receipt of interest on, the 2018 Bonds may have federal or state tax <br />consequences other than as described above. Other than as expressly described above, Bond <br />Counsel expresses no opinion regarding other federal or state tax consequences arising with <br />respect to the Bonds, the ownership, sale or disposition of the Bonds, or the amount, accrual or <br />receipt of interest on the Bonds. <br /> <br />RATING <br /> <br />S&P Global Ratings, a business unit of Standard & Poor’s Financial Services LLC <br />(“S&P”), has assigned its municipal bond rating of “___” to the 2018 Bonds. This rating reflects <br />only the view of S&P, and an explanation of the significance of the rating, and any outlook <br />assigned to or associated with the rating, should be obtained from the S&P. Generally, a rating <br />agency bases its rating on the information and materials furnished to it and on investigations, <br />studies and assumptions of its own. The Successor Agency has provided certain additional <br />information and materials to S&P (some of which does not appear in this Official Statement). <br /> <br />There is no assurance that this rating will continue for any given period of time or that <br />this rating will not be revised downward or withdrawn entirely by S&P, if in the judgment of S&P, <br />circumstances so warrant. Any such downward revision or withdrawal of any rating on the 2018 <br />Bonds may have an adverse effect on the market price or marketability of the 2018 Bonds. <br /> <br />CONTINUING DISCLOSURE <br /> <br />The Successor Agency will covenant for the benefit of owners of the 2018 Bonds to <br />provide certain financial information and operating data relating to the Successor Agency by not <br />later than March 31 after the end of each fiscal year of the Successor Agency (currently June <br />30th), commencing not later than March 31, 2019 with the report for the 2017-2018 fiscal year <br />(the “Annual Report”), and to provide notices of the occurrence of certain listed events. The <br />specific nature of the information to be contained in the Annual Report or the notices of listed <br />159