55B - RESO - WARNER ASSESSMENT DISTRICT

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(1) A primary dealer on the Federal Reserve reporting dealer list which is rated "A" or better by Standard & Poor's and Moody's, or (2) A bank rated "A" or above by Standard & Poor's and Moody's; (b) The written agreement must include the following: (1) Securities which are acceptable for transfer are: (A) direct obligations of the United States government, or (B) obligations of federal agencies backed by the full faith and credit of the United States of America (or the Federal National Mortgage Association (FNMA) or the Federal Home Loan Mortgage Corporation (FHLMC)), (2) The collateral must be delivered to the, City or the Fiscal Agent (if the Fiscal Agent is not supplying the collateral) or a third party acting as agent for the Fiscal Agent (if the Fiscal Agent is supplying the collateral) before or simultaneous with payment (perfection by possession of certificated securities), (A) The securities must be valued weekly, marked -to- market at current market price plus accrued interest, and (B) The value of the collateral must be at least equal to one hundred four percent (104 %) of the amount of money transferred by the Fiscal Agent to the dealer, bank or security firm under the agreement plus accrued interest. If the value of the securities held as collateral is reduced below one hundred four percent (104 %) of the value of the amount of money transferred by the Fiscal Agent, then additional acceptable securities and /or cash must be provided as collateral to bring the value of the collateral to one hundred four percent (104 %); provided, however, that if the securities used as collateral are those of FNMA or FHLMC, then the value of the collateral must be equal to one hundred five percent (105 %) of the amount of money transferred by the Fiscal Agent; and (c) A legal opinion must be delivered to the City and. the Fiscal Agent that the repurchase agreement meets the requirements of California law with respect to the investment of public funds; and (xii) the Local Agency Investment Fund in the State Treasury of the State of California as permitted by the State Treasurer pursuant to Section 16429.1 of the California Government Code. "Principal Office" means with respect to the payment, registration, surrender, exchange or transfer of any Bond or Bonds, the principal corporate trust office of the Fiscal Agent initially in St. Paul, Minnesota; provided, however, that for purposes of administering this Agreement, the principal office shall be the principal office at which the Fiscal Agent administers its corporate trust business in Los Angeles, California which, as of the date of this Agreement, is at the address set forth in Section 9.06 hereof. -9- 55B -29