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HomeMy WebLinkAboutResolution 91-169 06/17/1991Resolution No. 91-169 N.C.s. of the City of Petaluma, California 1 RESOLUTION AUTHORIZING PARTICIPATION IN THE 2 CALIFORNIA ARBITRAGE MANAGEMENT TRUST 3 AND TO INVEST IN SHARES OF THE TRUST 4 AND IN INDIVIDUAL PORTFOLIOS 5 6 7 WHEREAS, Section 6502 of Title 1, Division 7, Chapter 5 of the 8 Government Code of the State of California (the "Joint Exercise of Powers 9 Act") provides that, if authorized by their legislative or other governing 10 bodies, two or more public agencies by agreement may jointly exercise any 11 power common to the contracting parties; and 12 WHEREAS, under Section 6500 of the Joint Exercise of Powers Act 13 a "public agency" includes but is not limited to any California county, county 14 board of education, county superintendent of schools, city, city and county, 15 public corporation, public district., regional transportation commission or 16 state department or agency; and 17 WHEREAS, public agencies which constitute local agencies, as that 18 term is defined in Section 53630 of Title 5, Division 2, Part 1, Chapter 4, 19 Article 2 of the Government Code of the State of California, are authorized 20 pursuant to Section 53635 thereof to invest all money belonging to, or in the 21 custody of, the local agency in certain specified investments; and 22 WHEREAS, the California Arbitrage Management Trust (the 23 "Trust")was established, pursuant to and in accordance with the Joint 24 Exercise Powers Act, by a Declaration of Trust, made as of Res. No91,-16.9 .............. N.CS. 1 December 15, 1989 (the "Declaration of Trust") by Monterey Peninsula 2 Water Management District and Placer County, as the initial Participants, 3 as a vehicle for public agencies to jointly exercise their common power to 4 invest bond proceeds, and to secure related record keeping, custodial and 5 Federal arbitrage rebate calculation services; and 6 III-IEREAS, pursuant to and in accordance with the Joint Exercise 7 of Powers Act, the City of Petaluma desires to join the other public agencies 8 which are or will be Participants of the Trust by adopting and executing the 9 Declaration of Trust, Exhibit A attached hereto; and 10 ~IHEIZEAS, the City of Petaluma is a public agency as that team is 11 defined in the Joint Exercise of Powers Act; and 12 WPIE1tEAS, there has been presented to this meeting an 13 Information Statement, Exhibit B attached hereto, describing the Trust and 14 the Individual Portfolios to be managed by the Investment Adviser to the 15 Trust (the "Information Statement"); 16 N®W, THEREF®RE ~E IT RES®LVED, the City Council of the 17 City of Petaluma as follows: 18 Section 1. City of Petaluma shall join with other public agencies 19 pursuant to and in accordance with the Joint Exercise of Powers Act by 20 executing the Declaration of Trust and thereby becoming a Participant in 21 the Trust, which Declaration of Trust is hereby approved and adopted. A 22 copy of the Declaration of Trust shall be filed with the minutes of the 23 meeting at which this Resolution was adopted. The City Manager is hereby 24 authorized to execute, and the City Clerk is hereby authorized to attest and 25 deliver, the Declaration of Trust, in substantially the form presented at this 26 meeting. Reso. 91-169 N.C.S. 1 Z 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Section 2. The City of Petaluma is hereby authorized to purchase shares in the Trust from time to time with available bond proceeds of the City of Petaluma, and to redeem some or all of those shares from time to time as such proceeds are needed for the purposes for which such bonds were issued. Section 3. The City of Petaluma is hereby authorized to invest available bond proceeds of the City of Petaluma from time to time in one or more Individual Portfolios managed by the Investment Adviser to the Trust and described in the Information Statement. Section 4. The appropriate officers, agents and employees of City of Petaluma are hereby authorized and directed in the name and on behalf of City of Petaluma to take all actions and to make and execute any and all certificates, requisitions, agreements, notices, consents, warrants and other documents, which they, or any of them, might deem necessary or appropriate in order to accomplish the purposes of this Resolution. Section 5. This Resolution shall take effect upon adoption. Under the power and authority conferred upon this Council by the Charter of said City. REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Approved as to Council of the City of Petaluma at a (Regular) (1~~'~3Ffdl'~ meeting foGr,.m~--- on the .__.1.7.~t~............ day of ..........Juzle ........................................ 19...~.I., by the ETC 1 following vote City Attorney AYES: Read, Davis., Woolsey, Sobel, Nelson, Vice Mayor Cavanagh NOES: ~ ABSENT: M or ss _~~ ATTEST : ..... ...:. ... ~~ ....... ......................... ..... y Clerk Council File :................................... CA 10-85 ~ Res. No . .............................. N.C.S. Ma Vice Mayor ~~ • . ~ ~ UST' '""California Arbitrage. Management Program ilia Seivice ' Mak,of the Californnia Arbitrage Management Trust. II 4 E Page P age ~ AR~cLE I. rrAi~E,..PUxPOSE~Arrn ~ ~.. . . AgtTICI.E vi. sIIARFS o~ B~rr~FICiAI. n~rrE~EST - REPItESENd'ATTONS....... -, '..,..........::; 1 Secfion.6:1. Beneficial Interest.,... .......,. ,Section.. 1:1. Name _ :..................,........................:...... 1 'Section 6.2.~ Rights of `Participants ......................__... . 7 Section 1.2. '~ Purpose ._ :„., .._... :..... ,.... 1 Section 6 3. Trust Only ,_... ..:... .... . H Section 1.3. ' Representations of the Participants ...... 1 . Section 6.'t. Register, of Shares .:.. .......:. ......:...,.... . t3 Section ~6.5. ................... Transfer of Shares .... ....... . 8 ', ARTICLE II. TRiJSTEES :....:..: ......... -,:............... 2 Section ~6.6. Notices- ............... ............................_...,. . 8 Seetion'?,.1. Initial T.nistees ..:....:.:,:..... ..;.:.....:.. .. 2 Section 6.7, Approval Powers .....: ._.:. ..... . 8 ..Section .2.2. ': Numher, `Qua'lification, 'Election and Section 6,8. ...................... Series of Shares ....... . 8 ' Term df Trustees ..:..: ......:.:.:......_. _ 2 Serti~n 2.3. Resi "riator[ and Removal ...,.:..... ...,.... g 2 ARTICLE V•II. ' REDEI4IPTI®1vS .............,:. ..._........._.... . 10 ;Section 2.4. Vacancies ..:..........:......,,...............,.,..:... 2 Section 7.1. ledemptions , .......: . ....._ ................:..._ 1 Section 7:2. Suspension of Right of Redemption ... . 10 ..ARTICLE ffi. , POWERS OF TR$JS'I'IES . ..:................ 3 Section 7.3.. .Redemptions to Reimburse'Trust for Seeti~n 3.1: General...:..; ::.....,. .::. ..::.:::,......... 3 ~ Loss on Nonpayment for Shares, or for Section:'3:2. Investments........... _........., ..:................. 3 Other Charges . 10 Section 3.3. Legal Title.,, ......, ..._... •.. ;••••• 3 Section 7.4. Redemptions~Pursuan[ o Constant Section 3:4. Issuance aril Redemption, of Shares .... 4 Net Asset Value Policy ,.,.... • . 10 Section, 3.5. Borrowing Money and Lending Section, 7:5. .Redemptions in Kind ., ............ . i0 • • Trust Property ...._ ..............,.._............... 4 Section 7.6., Minimum Investment 10 . Section 3:6.. ..... Delegation-and Committees..:... 4 Section;3'.7. ' Collection and Payrnenc ::.:;. .......... , 4 ARTICLE 'VIII. DETINt~TION' OF. NET AS5ET Secugn 3.8. Expenses and I::imits Thereon ..:....:...... 4 VALUE; I~1E'I':INC011~ Al Section 3.9. ~ -Litigation ... .:...:.: ........ ..,.., :.....::, 4 'DISTRIBUTIONS 11 Section 3.10. Manner of Acting and By-Laws .:;:..... 4 Section 8.1. By=Laws to Govern Net Asset Net ' Section 3.11: Miscellaneous Powers ... ................... 4 Income and Distribution Procedures . . 11 ARTICLE' IV. _ INVESTA~EN'I' i~DVISOItB AND . AR'I'ICI:E IX. A'I'ION A1VV DUItA'I'I®N, OTIIIi~ SERVICES T® 'T'RUS'T' ...:...: 5 • • AA~1VI)NIENT ....... ......... ............_.. . 11 Section 4.1. Irivestrnent Adviser and.Approval of Section.9:;1. . ..................... ... ...... Duration . 11 A reements .....::.. g •"'`~'~ """"'' ' ""' S Seetron 2.2: ~ _ : : Termi,natron of Trust 11 Section 4.2. Other Activities of Investment. r .Section •9:3. Amendment Procedure .. .........::.....::... , . 11 Adviser .,,.,. .. • • • ~ "• •"'' """""""'- 5 Section° 94. Merger; Consolidation and Sale of Section 4.3. Other Services to the Trust . .:..............., 6 ... ............................... ......... Assets . 12 ARTICLE V. LIld)ITI'A'H'IONS OF HIABILI'I'Y OF ~ AItTICIE ,X.; A~LSCELI.AIV]EOUS .............................. . 12 PARTICIPAN'H'S„'TRUSTEES ANI<D , Section 10.1. ... .... Governing Law :.,............ 12 ...... ........ ...:,... OT'd~EIZS::.. .....: 6' ~ Section 1'0 2 Counterparts ..:... .. ' _ •12 Section. 5.1. No Personal Liabilrty of Section IO 3. Adoption liy Calrfomra Publrc Agen~~e~' Participants; Trustees;arid'Others ....::.. 6. Section 10.4. Certificates ......:.... •. .•••..•: ~ - 12 .Section 5.2. d Indemnrfication of Non=Liability an Section 10::5. Provisions in Conflict with 'Law or hers .:. .................... Trustees and Ot . 6 Regulations .. ....... ... . i 3 Secaon:5.3: ;Surety Bond Requrred' .: ........ .•••.•• Seetron 1_Q.6: Index and Headrngs for Reference Only Section 5.4. No Duty of`Investigatron and.Notice rn Sectrori 10:7. Successors in Interest ........ ................ . 13 ... Trust Instruments ... 6 • Section 55. ... .... Reliance on Experts _..: 7 -~ Section 5.6. Immunity from Liability;, Etc..:.:: .. 7 _. Section 5.7. Further Restriction of Duties and , liabilities ...:....:.::.,:.. ~. .s , _, ---.--_.~~._.r _ _ -----t---..... ., . - - Ttt-s` ~ Dee-_4-tA~~~n of 'Ckc sT made as of December 17,1989 by 'Monterey Peninsula Water Management [~strice and'Placer Chanty, as lnitiaf Participants.. WrrrrESS~rx ' Wi--:xe~s, Section 6502 of Title 1; Dwisicin 7, Chapter. of the Gcwernment Code'of'the State of California (the "Joint Exe.reise of `Powers Acr') pco.vides that "if authorized by their legislative o~. other governing" bodies, two br more :Public Agencies by agreement-.;may jointly exercise any power-ce~mrnon to the- contracting parties;" WH~RI-:AS, Section G7g0 of the .Joint Exercise of ,Powers Act defines. "Public Agency" to include "any state cleparcment or agency, a county; county .board of education, city, public corporation, or public district of this Mate;" WtiExF.AS, the Initial'... Participants :ace both California ;Public Agencies and are both authorized to invest funds p~isuarit to the Gc~uernment Code of the State of California; W--t;x-•:.4s, the Initial Earticpants have heen~ authorized try their legislative or other governing bodies, and desire.. to agree b,y ~tliis Declaration of Trust, 'to jointly exercise their common power to invest bind proceeds thrcaugh creation of the California Arbitrage Management Trust (the, "Trust") as a separate entity under the Joint Exercise of Powers Act; and ~.Wi'tt:xr:AS, the initial Partieipants~ anticipate that other Califo,rni'a Public Agencies may wish to become Participants by: adopting 'arid executing; this • Declaration of Trust 'and thus: becoming parties. to it (the Initial Participants and any subsequent participants being referred toherein as the "Participants"). Now, TttexEFOkt, ehe Initial Participants hereby declare. that all, mgney and. property contributed to the Trust established under. this Declaration of Trust shall be held and managed in trust. for .the benefit of holders;-.from time to time, of the Shares of, Beneficial ;Interest• (the "Shares") issued .Hereunder and subject to the provisions hereof., ~ ' AR'FiCLE''I. NAME, 'PURP®SE AND ItEP1tESE1~1`I'ATIONS Section 1.1. N~ane. 'The names of the•~trust created Hereby .is CALIFORNI_A ARBITRAGE MANAGEMENT . TRUST: So far as may be practicable; the- Trustees shall. conduct the `Tn-st's activities, execute all, documents and sue or be sued under that name; .which name (and' the word "Trust" wherever used' herein) .shall refer to the Trustees as trustees, and not.. as individuals' or personally; and shall. not refer to the. officers, employees, agents r;r Participants of `the Tn-st. If the Trustees determine that .the use of.` that name i not advisable, fhey may uses another designation or adopt another name under which the Trust may hold 'property or conduct its activities. The Trust shall ;constitute a separate public entity witliri the meaning of Section..6507 of the Joint Exercise ~>t Powers Act. Section 1.2. Purpose. The .purpose of the.Trust is to provide California Public Agencies with :in instrumentality ~r agency to pool their'bond proceeds to facilitate the investment of and accounting' for sup h. proceeds in compliance with the arbitrage management requirements of the Internal. Revenue Code of 19x6. ;,: amended...Only Public ,Agencies of'the State of California, authorized under che. Joint Exercise of Powers. A~~t ~ ~r other applicable~Calfornia statutes: to ,enter into joint 'a`rrangements of this: nature, may-sown Shares, and such California Public Agencies may purchase Shares only after aheir governing bodies 'have become Participanc~ ~ ~t° this.`Trust by adopting and executing this ,Declaration of TruS[. , Section 1.3. ltep>resent~tions of the Participants. Each Participant represents and warrants to the cxh~~r Participants; but only as to''itself; as follows: ~ ~ ~ ~ . (a) The.Participant is duly organized and validly existing as a public agency of the.State of California, as that ,® .term is defined yin Sectiorn6500. of the Joint Exercise of Powers Act, and has full 'legal right, power and authoru~• to enter into this :Declaration of Trust, to observe and perform its obligations hereunder and to invest its asses .,~ '"`= provided herein; and by all° necessary official actions the Participant has duly authorized and approved -hr ~' ~ ~ ~ - - -~,_: r execution hereof, the observance and performance of .iis ohligaticros' hereunder and. the investment. ~~F its :assets as provided herein.. `• (h) 'This Declaration of Tnist constitutes a, legal, valid. and bending ohfiKatic•~n of the' Partci'pan.t. enfy>rceahle against ,the- Participant in accbrdanre with its 'terms, erce~t .as enforcement may br limited by f~;rnkcupt~-~', insolvency., reorganization, moratorium qr similar law;ti ;c>r equitable ,prineij~le5 relating to e=>r limiting creditc>cs rights generally,, and by ehe.~apiiltcation of equitable remedies. i'n •appropnate caties., = - ARTICd.E~ II..' TRUSTEES Section 2 1. Initial Trustees: E3 the execution .cif this Declar;iticSn Eaf Trust, the Ini =Y ~ . ~ fiat Pa rticiiiants, a fir>int the following five, individuals't~~ serve',as tntt-ial Tn;ititees: ;. - • Bnce Buel - • Earl C~~rin _ .. • • Nancy E. ,Hicks ~ ~ ~ ~ • • James S. Kennedy'- ~ ~ ~ .. • ~I2obert C. Leland ~ ~ ' Section. `2 2. l+Jumber, Quahfi _ ' . - ~ _ ~ `I I • bc• cation Electilon and Term'. o>F.'II'rustees.~ The number of TntSteeti ,h.% fixed from time to time'hy resolution of the Trus[ees; provided, hc5we_ver, chat the number c~f'Trustees shall. ncx be less than th"ree and. not greater' than ..fifteen and shall not `he less than. the number,. x~f ,classes c>>f CaliEczen-ia Public .Agencies entitled. =to representation on the. Boaria 'of Tistees as provided ,in the `By=Laws. All Trustec:ti shall be members of the, governing body;- officers or full time 'employees, of ,California Putilie Agencies:. Utlier than the initial; Trustees <and Tnisfees Warned .to fill yacancie5 as provided. in Seet:ion 24, the Trustees tihail Inc appointed by the Board of Trustees and approved annually by .the Par"ttcipanfs. Except in the e~ ~,nt ~,f resignations or removals. pursuant .to' Section 2;3; each, Trustee shall hold office until, his ~_~r her .succes.~~>i~. is appointed ,and approved by the Board~of Trustees and the: Pacticipanis and, qualified to serve a5 Trustee. 1-ac t~ Trustee shall either sign" ah"is Declaration of Trust. or agree an 'writing to he. hound~hy it: , s , Section 2 3: Resignation •and`RemovaL Any Trustee may resign: his or her ,rust (without need .f~~r pelt>r ,,r subsequent accouritiiig) by an;'instrument:.in writing signed.. by. such Trustee and delivered„to the other Tnisti~•;., and such 'resignation shall •be effective u,pon~-such delivery, or at a- later date' according to the teens. <>E rh~~ ; . instrument: A Trustee. who. has ceased to be qualified 'as pro~icied in the `By-Laws, who,has died; who has`Ia~•~~n judged. incompetent or 6ankreipt, or for whom a ,guardian or c~nservator~ has,been appointed,.. shall„bei deg ri~~c•d fo have re"s.igned as of the daterot such disqualification; death, adjudicahgri:or appointment. Any Trustee ma~• Ik• removed, with or without cause, by the action .of'[wo-thrds'of fhe.,remaining Trustees., ~ Upon the.resgnatic,n• ~r - removal of a Trustee; such-former.`Trustee-.shall execute ,arid deliver such documents a's .the. remaining Tristr~~.. , shall require for ihe: purpose:~of c~nveying.ab the Trust orahe remammg'Trustee"s any Trusr~property.held,~n ~lir name. of the resignirig..or removed Trustee. Upon the ineap"achy or death of` any Trustee; `his or her I~:~;~,I " representative shall, execute and, deliver sucfi documents as, the, remaining:. Trustees shall require as prov.id~xl ~r~ the preceding .sentence.. • .. - • ~, • The Superior Court of the City an_ holdin at least 10%• of he Shares cd County, of 'Sari 'Francisco, California; may at the suit of any° Partic`ip;uis., g :. erno"ve; from office' any Trustee in ease of fraudulent or dishonest: a~~t~ .,.,~ gross, abuse of authority' or sdiscretion, with reference. to they Trust and. may `bar from reelection any. Ttustee•~ ±,~ removed foe°a period:deter~rriined~by the Court: ~ • Sectio>ia 2 4 „ V~eana:iles. The term of• office of a~ Trustee ,hall terminate- and a vacancy shall occur in „t-, event of the disqualification, death, resignation; removal, `:bankruptcy, .adjudicated incompetence or ;<~Chri incapacity to perform :fhe duties of~~tke, office, of a Trustee. No such vacancy =shall operate to annul rli'r. Declaration of Trust or: to :remove'anyexisting.agency created.pursuant~to~;the terms of this Declaration of Tn~~r ., _ In the case of 'an ex-isfing.'vacancy. .including; a vacancy existing •by reason of :an increase in' fhe ~numh~r • ~; 2 __.. .„~,, ~.- e .~-- .. ~• ~'rustees; the~:remainirig Trustees .shall fill such vacancy by the ,appointment of such. ether .person as they in theic~ discretion shall see fit acid as is qualified as provided herein and •in the By-Laws. [f there. shall be no remaining Tnistee..any Participant may petition,'[he' Supecioi• Court of th'e City and County. of San Francisco to. appoint a~ Trustee who rs qualified' as provided, herein and by the By-laws. Any such appointment shall not beecime effective; .however, until. the person sapgointed shall have aceepfed in writing such appointmert a,nd agreed in ~~~ritng, to he, houniri hy- the terms Hof this Declaration ~f Trust. An appointment of a Trustee may be :made 'in anticipation, ~f a :vacancy to occur at a. later date by :reason of resignation, provided that: such appointment shall not. hecgme effective 'prior io such resignation. Whenever a vacancy in the ,number of Trustees shall occur, ,until ,ue_h waearicy is filled as provided in this Sectiori 2:4,, he Trustees in office.; regardless of their number, shall have .~rll the powers granted 'to the: Trustees and shall. discharge al[ the duties imposed upon the Trustees-hy this 'Declaration ~of~Tr<rst. AR'I'ICI:E III..;POWE)EtS -:OF TRUSTEES Section 3.•1. General. The Trustees sha1T. have exclusive and absolute. control over the Trust property ,and c>>ver the -affairs .of' the Trust o the same extent as if. [he ~'rustees were: .the sole owners of the Trust property in their own right, but with, such powers of delegation as may he permitted by this Declaration of Trust: The Trustees yshall have power to, conduct the affairs of the Trust and carry on its operations. in ariy and. all of its branches and maintain offices- bath witlir- and without the. State of`California, and to do all such other things and execute. all such instruments as •he `Trustees .deem necessary; proper or. desirable in order to .promote th`e interests of the Trust .although such.;things are .not herein specifically mentioned. Any determination' as to what is in the 'interests of the. Trust made by .the Trustees in .good faith, shall .be ,conclusive., In construirig the provisions of this Declaration of Trust, the presumption shall be in favor ~of a grant., of a power to the Trustees. ahe enurrieration qf' any. 'spec_-fic power herein shallriot be construed as limiting the aforesaid powers> ,Such powers of the Trustees may be exercised 'without order of or .resort, to, any court.- Notwithstanding the foregoing, the: investment powers of the firu tees under this:. Declaration of Trust shall be subject to any restrictions' upon . the manner of exercising such powers imposed by the Maws 'of tle'State of California, including Section 53635 ~f Title 5; Division 7, Part, i, Chapter 4, Article .2 pf the Govtrnrnen"t 'Code on Placer County, `as an Initial Participant. In the event that such :Initial. Participant (or~any successor .Participant designated as, described below) ceases tq be a party. to this Declaration ofTrust,, the Trustees shall'designate another Participant as' a successor Participant for purposes of this-Section. ~ ~ ~ ' Section 3.2 Iinvestments. The Trustees. shall Have the, power to subscribe. for; invest'in, reinvest in, purchase or.otherwise .acquire, own, 'hold; .pledge; sell; assign, transfer; exchange, distribute, .lend or-otherwise . deal in or dispose ofnirivestments of'every nature and kind, provided sucl`inyestment is (in the Sole- and absolute .disc_rexion of the Tr"ustees) consistent with the investment. objectives and policies set forth in the Trusts [nformation Statement, ,as most- recently amended or supplemented.; and to exerci a any and all rights; powers and privileges. of ownership.. or interest in :respect of any ~arid all.; such. investments 'of.`every kind acid ;:description. including. without limitation, the right to :consent. and otherwise act with respect thereto, with power to designate " one or more persons, firms, associations 'or corporations to exercise any of such rights, powers and privileges in respect of any of such. investrrients:. Section 3.3:., Legal Title, •~Legal .title to" all the Trust; property shall' be vested ,in the Tiustees•~as joint tenants, except that. Ehe Trustees shall have~,power to cause aegal title to -any Trust pcoperfy. ;to be held by or in ,the name of one or more of !"the Tiustees,.:or-- in the name of ahe Trust,.,-.or in the name. bf any other person. as nominee, can such terms as the:~Trustees may determine,, provided that they,interest of the Trust therein its appropriatel~~. a protected, The right, title and; interest~.of the Trustees'. in the Tn-st property shall vest automatically' in each person who may heieafter•~becortie_„a Tnistee: Upon` the resignation, removal, incapacity., disqualification c>r death of a Trustee Heahall-automatically cease tohave any. right, title or interest in any of the, Trust .property; a nc the right,. aide and: interest of such Trustee. in, the Trust property shall vest automatically in the remaining Trustees: Stich vesting and. cessation of title shall be effective whether or not conveyancing documents hay ~- i ak- ` d. ,.N~. ~ R~' z;: - .~;~,, • ~ ~ _ _ `. been executed and' delivered. - ~ ~ ~ ~ ~ , Section 3.4. •Issuance and .Re Qemptiotn of Shares. The Trustee5.;~halC' have• [tie power tci r~tiue. ~tll: _, , repurchase; redeem, retire, cancel, ac utre; hold, "resell, rettisue; dispose, cif, transfer, and: cxherwise deal rn ~ti_~cres and,: suti,ject to the provrsions hereof, to apply to; an,y such`. `re;purcha5e : redempti~~n, retirement cahcellatii•ire i"s"r' ucqursition of Shares any fonds or• property- of she. Tctst,, whether' ca faital or surplus sir otherwr5e,.._to• the full eaten[, now..or hereafter permitted, by CalifiJrnia ;law. _ ~ 4 ` ,coon 3 5: Borrowtn Mone, and &.endiai Trust )Pro I PP "~ ~ ~ 8. _ y'- g party. 5uh'ect to a ltcahle law-,.'the Trutiteeti~shall . ha~~e power to borrow ;money or otherwise obtain credit and. to secure .the s"ame h mart a rn ~ leil -n ~>r c~therwtse suhjerfing as securit-y the asset5,~f the'=Trust, to endorse;. gu~iiantee, •or undertake [tie perform,inee cif • .cny obligat-ion, .contract br engagement of a_ny c~th'er• person.and t~ lend Trist property. Seetioa 3.6. Delegation,,and Committees. The 'Tn.ititees shall. have power t<~,: deleKate, from time' to une to, ' such of their number or to officers,. employees or agents of the--Trust the' d~~ing e~f" such''thrngs rnd the exeeutit>n of such instruments e>_ther in, the name of` the Trntst or""the names oF' the: Trustees c~_r- otherwise a5 ;the Trustees. may deem expedient„ to "the same 'extent a5 such delegation,. :i, per:mitted ;hy .law and, consistent wtti• the' [3y= :.` 1 Laws. • • A - „' Serfion 3 7- Collection and Payment. .The TruStee5 ,ball have power to c~~llect_ all `fiioperty due to the: Trust; to pay ala ~clairn"s'; including; taxes; against the. Trust ,lroperty, to' prosecute, defend, con~rorrn~e or abandon any claims relating ao the Trust property; to.t~reclo~e any,•.zsecuiity interest. Securing ,any ~hltgati<-%n hy~ .• ~ irtue of which any.,pro.petty is-owed .too- the.Trust; °an~a to :entec:into-releases,-agreeinerits and other instruments.' S.ectton 3 ~.: Ex expenses which in tl~e op ion ofLtheiTru~eers are Hares ~nl~t. ~ernciden ~~ Ve the power, to incur and pay' any ~ • -•' this Declaratton~ of Trust. TFie Trustees shall fix the compen5afion of a11. offices anti templd f the purposes cat' - yeas who aye' nt,~t ` 'i Trustees.:. ,~ ,. .:: g p ,- •P , . g g ~". ~• -. y,Q tend', comercom~se3abandotn otrad'ust hb arbitrattonhorl otherwie; •any actionsnsutts,t roceedtn`sr dts`utes 1. , . Y , .p $,^, ~ to ~ laimti; and demands ;relating; to the Trust: or •the Trust property, and,... out ciF the Tnst property;, Ito ,pay or go itt~ty°•ztny: :: debts; .claims ,or expenses•.incurred in connection wherewith, including: those of litigattori; and' sued: power sha.lf '' include without limitation the, power of the'Trustees, or any aPpropciate:,corrtmittee ,thereof, 'in th'e 'exerc.i5e ot. their or its ood faith business "ud men[ consentin fo• dtsrnts`s` an :action Butt ' g: l . g g ,y. ', procee~itng ,dispute, claim, cSr ,' . • demand, derivative or otherwise, brought by any person,. including a Participant igsuch.Parttctpant~s .own nane,;~ . - or in the..name of the, Trust, whether or noti~.tlie~ Trust 'or any: of the Tnistees' may be, named indrutduallyf~therein ~, or the subject matter,'arises by reason of busness.for or on behalf.of•the Trust: , • -Section'_3.10: Manner of"Actitnj~~,and•Byhws Except ay-otherwise provtded~hereinn or tnthe By=.Laws, .ins .action to betaken by, the; Trustees may be taken by,a majority ,of ahe.`Tcustees present at;,a,~meeting of,.,Tnrstee5 ~.,~ ~. ~' quorum being present). ~ "1 - • The• Trustees may adopt By-Laws not tncorisistent with ,th'is Declarattori -of Trust Fc~ ' provide for,the conduct ,of the affairs 'of the Trust and •t•riay amend., or repeal, such.•By-Laws'. dun 3 11. :Miscellaneous Fowea+s. The Tivstees shall have the power to: (a•) employ or contract «rth such persons as `th'e Trustees may deem desirable•for~the, transaction: of ;the affairs~of the-Trust; (b) to the, axis n`t+ permitted •by law, enter ;into joint ventures; ;partnerships and 'any other eomb~natons ocassociations; !(c)' remc~~ ~• • Trustees 'or fill yacancie"s in or:add to their,. number; .elect and; remove -such officers, and a nt and,'teiminar~ , sus ter h agents or employees a"s• they consider:;appropriate, and appoint; from their :own ,number and others, ~:ircJ 'f urinate, `any •one or more committees which •may exercise, some or al,'l. of the power and .authority of the '. ~ +_; .Trustees. as the Trustees may determine,. ('d) ~purehase,, and l~iy foie gout' of Trust, property„ ;insurance, potc«> insunng,the Trustees, officers,, employees,,. agents, Participants, investment advisers;. distributors; or ;irrdependeni. ' " ' contractors of the ;Trust against::all claims anstpg~'by 'reason. of holding any' ucli: position or by reason of !a~n action taken or omitted. by any such person in 'such capacity,: whether ,or not; consttuCing-..:negligence; or whether - . ~ -. • 4 '. • ~. - _ .° y , ,~ , +;a. .4 ;..,• " ' ~. or :not 'the Trust would have .the power ao indemnify such ;person against such liability; (e) to the extent - ~ .permitted by ^:law, indemnify arty person with whom. the Trust .has dealings 'fo such extent as the Trustees shall - determine; (t1 determine arid ,change the fiscal .year of the Trust and the method by which. its accounts. shall be - •~ 'kept; and (g) ,adopt a' seal; .for the Trust fiat the absence of such, seal shall not impair the validity of a'ny instrument executed on behalf of the Trust. ~ - [n addition to,-these specific .powers,. the Trustees shall also have all other '.powers consistent with the Joint. Exercise ~f Powers Act and the laws of California governing California business trusts and 'reasonably necessary from time to time to carry out .the purposes of the Trust as set forth in Section 1'.2. - ARTICLE„IV. INVEST1dIENT ADVISORY AND OTHER SRRVIGES T® TRUST ;. .Section 4.1 Investmeint? Adviser and. Approval of Agreements. Ttie Trustees :are responsible fir the .general policies of- the Trust .and for such general supervision 'of ,the business ~ of the Trust conducted by all c>fficers, agents., employees, advisers; managers or independznt contractors, of the Trust as may be necessary .[o insure that such 'business conforms to the provisions of this Declaration of Trust. However, 'the Tmstees shall not he required personally to conduct all the; bu"sines of•the. Trust, sand consistent. with their ultimate .responsibility. as stated above, the Tmstees shall .have the power to appoint, :employ or contract with. any person (including. one or more of themselves or any corporation, -partnership, or'trust. in which one or .more:: of them may he directors, gff-cers; stgckholders; partners or trustees)' as the Trustees. may deem necessary br proper for the ` transaction of the business of the: Trust. The,Trustees may in their discretion; from time to time, enter into an investment advisory or management contract, whereby the other party to such contracf shall undertake to furnish . the Trust such management, investment advisory or supervisory; administrative, .accounting, legal, statistical'; . _ research, and. promotional facilities and services; and -such ©ther' facilities and services, if arty,, as '.the 'Trustees may in their •discretiondetermine. 'The Trustees may authorize "the investment adviser to effect purchases, .sales, loans or' exchanges of portfolio secu~iCes of the' Trust on behalf of the Trustees- or may authorize any officer, employee or Trustee to effect such. purchases, 'sales,. loans or exchanges pursuant 't'o 'reconunendations of the investment adviser; all without further action, aiy the'Tnistees, Any such purchases, .sales; .loans and exchanges shall he deemed to:'have been authorized,;by all of'~he Trustees. The Trustees shall have the power, to deterrrtine the; compensation and other terms of employment. or contract of the investment adviser or arty. other` person whom they may employ `or -with whom they may contrict., '.provided; however, that any determination.. to employ or contraet~-with any Trustee- or ..any person: of'~ which a. Trustee 'is an Affiliate, shall be valid only' ifmade, app"roved' or ratified. by a. majority of the Trustees who a_re nc>t. ..Affiliates of such. person.. The Trustees ;may exercise- broad discretion in allowing the-,nyestment adviser tca: :administer aiid-regulate the,.operations of [he Trust; to, ae[ as :agent for the Trust, to~ execute.documents~ on hehalf of the Trustees; and to 'make decisions which conform to ,general policies and general ,principles previbu:~l~ establi hed by the Trustees. For purposes ~of `this ,Declaration of Trust and the By-Laws, Affiliate shall, mean, as t~:> any person; any oilier person who oavns'beneficially, directly or .indirectly; 1% of the outstanding capital. stock ~,~ equity interest of such person or ~of ,any othei person which controls, i"s controlled. by or is under c~rnnr~ Sri ., rcontrol-with such :person, or is~an_officer; retired "offices, director, employee, pastries os trustee ofsueh pei•sc,n , ~r of 'any other :person which; controls, is controlled. by "or is under common control. with such ,person.: •. Sertiota 4~.2. .~ttaeic Activities- of Investment Adyiiset: The .investment. adviser shall. not be;, required «~ ` administer the. investment activities-.of. the Trust as its sole: a'nd exclusive function and .may 'have other bu,cn~... interests. and .may engage •in other activities similar' or in addition to tho"se relating, to 'the Trust; including. ~ F~ rendering. of services~~ and advice io other 4persons and' the management of ottier~ investments (incl`udirr,~; investments of the investment ,adviser and its' Affiliates). The nvestmerir?adviser shall- ibe `required to use ;its best-efforts to .present a~,contiiuing and suitable investn~~~n~. ,o program to the Trust which is consistent°with "the investment policies aril objectives of the Trust but neither .~ hr investment adviser nor :any.Affiliate of the investmeni adviser shall 6e obligated to present any ~ panic a I.i r investment. opportunity to the Ti-uSt even. if such oppi"•zrtitnty is~ of a characte_r.• which„ if ,presented. ,to the Tni~t•. -• ^~ -: could he taken hy'?the Trust; arid, :5uhject t~ ".the foregoing; shall, he; protected .in taking foi• its. c;iwn account ~or-- recommendhg to others any such parti'eular in~estrnent' opportunity,; Section 4,3 Offier Services ta;the Trust. The Tntstee} may fr~•~ni "time tc-i time i'n [`heir dtsereticn enter int<.i ' e~ntraets or agreements with indepenelent c~ntract~~es, to carry out the follc,~wng hin~tcins; 11;) transfer°agent aril dt~ide_nd di5hursing [gent; (~2) ,administrator,., to maintain ahe .hcic•i;ks and' records cif the T:,rust,,ai supervise ~rll' aspect-s of "the Tnts"t's operations, inclu~ing,j?eriodtr"updating of the Trti,St s Intc~~m.iti~in Statement, tc~~. prepare" tt~r • ' Tnist's tax returns and penbdtc ;reports to Partiupants to ci.~mpntr the Tnist's da-ly _net .inset value ,aniJ yield, [o provide office space; equipment ,)nd, facilities necessary fi>r t`he Trust':ti• operatic<ms :and-" ~~ ptcwi(rle such, c~tht-r administrative. serv,-ces as the Trustees may-.reyiiire; (3) ~cli5erihutor; t~~ act'as", the Trusts sale"s' age=nt t<>>r the: distribution c~f.the Shares, (4) ciistomerservice;agent, tc~ prc">vide infe>rn~atiop C~~ C.ilf~>rnia ['iihl'ic,Agencieti «,l'.iclr are Partrupants cit!.aie interested in hecoming'`Participantti ,h) custodian hank; to hold a'll ;mcmeY and;sec,urities .,x,- con5tituUng the Trust rc~ •ert (6•) mile endent certified uhl'ic accotantants; to ertorm; an annual au v :.. - _ p ` Fi Y~ P ,• P ~ P dtt <<.ncf , pro •ide such n her. services as the Tnistees may require„ and (7) egal counsel The: fc~regc~tng ~speufie. Fist sh~rll not prevent 'fhe Trustees from` employing, ither •persons to pr~.wide such. adv.ire; assistance or services pis -tire ' Trustees may•from tirne> to times require` to carry out. the purpoties .cif fhe- TruSt.as'sef forth in ~tiect~n `1.2. • • ARTICLE; V. - LIMITATIONS O1F'"LIABILITY "OF PARTICIPA111TS; TRUS'T'EES' AND:OTT~ItS Section:5:1 No I'ersona.l I3abiility°of l'articipa><its, Trustees .and Others: No; Participant shill • tie sul5je~~'t `to any- personal. liability, whatsoever to;any .person in wrinectionwith Trust property cir the sets;. ohliga[ions car . affairs .of the Trust: Suhject,,to Section 5.2, no Trustee,. officer em~lc~yee ors agent. ~f the T,i-usf shall he sthlc.ct;t<~ -.any personal` liability whatsoever to any person in connection wuh. Trust property ~r the acts,. c~hlgatie~ns csr•. affairs: of the Trust; and all ,such persons shall' look solely ao the 'Tian[ property for satisfaction "cif' claims; of am~~, nature arising in connection with the affairs of the`Ti•ust. ;N,o Partiupant„ Trustee, cifficer.emph~.yee, or agent.•.a:~: such, of the Trust; made a :party to any".suit or proceeding t~ enf~rce_ any such ';liability;. shall .he .head tc~ :r{i~ personal - iahility:, The Trust shall: indemnify and-hold. eacYi~~Participant harmless from, and -against all claims x~n~l • - iabilities to which' such Participant .may become subject by reason of its'heing, or having been a .Participant r(:r~l such' la m or liabilu Pa~ro Pdet for all; legal and other expenses rea5onahly incurred by it n•~cprinectton with an~~ - _ _ y, p d hat such indemnity or reimbursement; shall, he made from asses (or proceed. thereof.'or income ,therefrom) qF the one or more Series oE' Sharees of the Trti"st.'in respe"cr ~f~`which; such. claim~~~ ;r _ - -. _ liability';argse and :not. from the ;assets (;or proceeds or iriconie~ therefrom°) of',any,other `Bevies of~ Shares of tl'~c• Trust'. The rights accruing ~to a; Participant uiidei this SSection 5'. 1" shall 'not exclude any oilier .rigtit't:o which ur~;f ~ - Participant' may' be lawfully entitled,. Hors shall anything herein contained. resfric€~ the .right' •of they :Tr~> t t~:~ •.- , indemnify or reimburse a Participant in any appropriate. situation even 'though :not specifically provided, herein.. ~ . .. Sections 5,2 Non=LialVillity and lndemniAcation of•'Prustees sand "Ot)faers No Trustee, officer, ernplc,~ ~•, or `agent of the 'Trus`t shall 6e liable to the• Trust; to. its Partic_ipanfs, or to any Partrctpant, T,rvstee:; c~tfiGC~r •employee, or agent: thereof for :any •action or ,failure to act (incauding.`withoUt:.limitation [tie failure to: compel' ~~ ~, . ~. ._ , any way any former or :acting Trustee°°to-;redoes"s any breach of ~tnist), except for. its, ;his or her: own bad ~fii~~a ~ -_ willful misfeasance;•.gross negligence,or~reckless :disregard.of•duty. •Each Tnistee, officer,:employee, and agent ~ ,i. the Trost shall be inderrinified; as provided in the By=laws and. to the" fullest exfenf provided by California. law... -' Secfilorn 5:3. Surety )Bond ;Ttequiined. The Trustees: -shall. obtain, a sucery bond' ;in such amounts and ~~.~)I;,i ..such terms as'•they shall. determine, pursuant to Section 6505.1 of Title: 1;, Division, 7,_Chapter,. 5 of rls~• . Government. Code of the State: of California. - - ~ - Seetion 54. 1Vo Hhety off.Investi>~ati®n and; Notice; itn Tres#.IEistnaments •'Ng~ purchaser, lender; `transtr-; aj;enC,or other person dealing. with the Trustees or any officer, -employee-~or, .agent of the; Trust shall~be ;bound t• make .any inquiry, concerning, ahe validty-of~ any transaction purporting: to be ;made. by the Tnistees -or' by ~u I' - officer, -'empl'oyee nor- agent"or ke aiable for the <application of .money or property paid;, loaned, or dehyered tc1 ter ~_ ., on the order of the; Tntstees or ~f such- officer, employee or agent. Every obligation, contract, instrument, ~~ certificate, Share 'fir other secur.i y ~of, the Trust and undertaking, and eveiy other." document executed i'n - c~~nnecticm with the''Tnist, shall, Fie conclusively presumed' to have peen executed' or'done by the executers =thereof canly iri the:i_r capacity as 'Trustees under this Declaration of Trust. or in Their capacity as officers, . . employ"ees c~c agents c•~t the Trtis[: Every wri[ten ohligaGion, contract; instrument, certificate, Share or other :security of the Tntst or undertaking :made- or issued by the Tn-istees shall recite thdt it is executed.. by them not ndivduaaly, .hut. a5 Trustees under 'this Declaration of Trust, and that t'he obligations of `any such instruments-are not binding upon any of ahe Tn.-stees or Participants :individually, bur. bind only the Trust property, but he omssitm of such recital shall. not c~pe.rate to bind `the Trustees 'or Participants individually. Section 5.5. ' Reliance on Ezpeirts~. Each Trustee, officers Viand employee of the Trust shall, in the performance of his. car tier deities, he. fu ly• protected with' regard t~ any _aet or any failure to act resulting from reaiance in gold faith upon the hooks of account oc other records: of "the Trust, upon an -opinion. of counsel, or upcan reports maele'to: the Ttust'•hy any of its offices or employees or by the investment adviser; administrator, transfer agent, custodian, distributor accountants, appraisers :or. other. experts or consultants selected' with . reasonable care f?y the Trustees, officers or employees of the Trust, Section 5.6• -Immunity from Liability., Etc, Ala of the. privileges arid-. immunities from liability. ;all exemptions from laws,, ordinances and rules;. and' all pension, relief, dsability`,•=workmen's compensation, and - richer °benefits which apply' to the activity of Board membe;s, officers,. agents or-employees of the Initial - `Participants and any° additional Participants -when performing their. ~fitncfions within the territorial limits oP their respective Public Agences,`shall. apply. to theta to the same degree and extent while engaged-in [lie perfor=manse of any of°their'funcbions~and"duties .associated with the TrusC. Section 5.7. Furihet Itestrictiota,of H)uuties and Liabilities, W.ithouc limiting. the foregoing proy,is'ons of this Article V, the> Ttustees; gfficers,, employees,.. agents, and. Participants :of. the Trust• shall in no event have any greater duties or liabilities than those imposed by applicable law as shall be in effect from time to time. AIt'I7[CI.E VI...SI~AItES OF .BENEFICI~,;I1~'I')EREST • Section 6,;1, :Beneficialt Inter-est. • The. -interest of: the :beneficiaries :hereunder shall be divided int<> transferable units to be called Shares of, Beneficial .Interest, $O1 par value (the "Shares")..The number of Shams. . • authorized hereunder; is unlimited. :Except as otherwise provided-in this Section 6.1 and i:n Section 6.8 herrc~t. each Share shall• represent an equal proportionate share` in'the Tier assets' of the Trust. "Each Share of any ~c'ri:rs shall repres Y t an equal proportionate share in th~ assets of 6hatg cries with each other oP shares of "that ~~ rirs Trustees ma divide or combine "the shares of an .Series into a neater or' lesser num r Share in that Series Fhe without thereby changing the° proportionate interests -n then assets of char Series. There is hereby established and designated three Series of.Shares to be known as the ''Treasury:Portfolio", the ``Money Market Portfolio", a!nd.ihr "Federal .Portfolio" "Series., Subject, to the provisions of Section- "6:8 :hereof; the Trustees "tray authorize r'hr. .. creation ~of 'additional Series of Shares (the; proceeds: of which rnay" be- invested in separate, independrrirl~ - managed: portfolios)'. All Shares 'i'ssued `hereunder, including; without: limitation, Shares issued in connection ~• n h a dividend in Shares or a division of"Shares, shall tie fully paid: and.`nonassessable. ~ . gah8s of'1!?articilpauts The ownership of the Trust property :of every description a.nd the n:;lit .Section 6:2., Ri - = ._~ - - to. conduct the affairs-of the Trusr: hereinbefgre,descr"'ibed are vestedexclusively in the Trustees,~and ~tat• :< -. Participants shall. have :no.'interest'therein other. than she: beneficial interest conferred' by their•Shares, arid'il,~•v • shall have no right "ta call for` any `partition, division; drvtderid on distribution ~ of any property; piofits, riKht• ~ •r interests of the Ttvst :nor. can 'they.be. called upon to assume any';losses of the Trust. or suffer an assessment , ~f . any kind`by,virtue o~~ their .ownership of Shares. The Shares shall' be personal property giving, only the n,cht~ specifically- set:- forth in this Declaration of" Trust- -The Shares: shall not entitle the .holder to preferrn«.. ---~ -. preemptive,, appraisal; conversion or "exchange 'rights, except as'the' Trustees may determine. - Section.6.3. Trust.. Ox1ty,. It .is~ the intention :cif fhe Trustees to create only; the relation~hi " of Trustee: anil - . :. p - heneficiarybetween chef T,rustees• and each Participant from time, tb ume: [t ~is not the intenU~n ~~f the `Tru'stees to " create a general partnership, limited, partnership, .joint. stock: association corporation bailment. car any :f~>rm cat; legal. relationship ocher "than. a trust.. Nothing in this,Decla~at~~n, czf Trust. shalC;he construes-i tc•~. make he. Participants; 'either. by themsel~gs o`r- with the Tru tees, partners or members of _a partnership :i7~ a ~jc~int stcick; association.. - Section :6'.4. Register of-Stiares. A register shall he kept at the principal office of ,the Tnist ~~r a[ such ;place as the Trustees shall designate =containing flies names andaddresses ~f all Farticipanfs and the number of Shares held. by them respectively and ;a record ~f: ail transfers. thereof: Such .register shall he° ebncltitiye. as to which California Public Agencies' are the holders dE the Shares an<.1 which Ca{if~rnia Puhl_ic Agencies shall .he, enti[l'el to receive distributions ~r ~itherwise to; exercise or enjoy [he. rights of Participants. :N~~ Partieiparit •sliall he entitled'. i Ito receive payment of any; distribution, nor to' have nglits given t%~ it as herein ~r [n; the-B;y-Laws proy,i~ed, until . .-- - • ._ its. correct name ,and saddcess has been given to the transfer agent; cis such, other officer ~c agen[ :of the Trustee'as' shall .keep. the register: The Trustees; in [heir dsereti~n, may hii -need not ;atitlcirize 'the •itisuance ot. ti,ha~re - _.. certificates and promulgate appropriate rules =and regulations as to their use. - ~ • - • - - Section. 65. 'Transfer off'Stiares. ;=shares. shall he transferable on- 'the- records -if'the'Trust gnl:y by the record .. holder thereof or by :its agent thereunto duly authorized in writing upon delivery to the:.transfer, agent c~F a ,duly ., :executed mstiument of. trarisfer together with .such evidence eif° the genuineness ,of each such. execution and authorizatio"n and of other. matters as may ~_reasonanly 6e: r~,qui'red;, -.Uponsuch delivery the- transfer shall he - . recorded on the register of the Trust. Until suchrecord ;is made; the~.:Participant ~f :record 'shall .tie, deemed to he the hold . officer; eer of such.,Shares. for all purposes. hereunder and neither the. Trustees ,nor any ~fransfer agent: nor zany ' mployee of agent of the Trust shall be affected by any notice of the; proposed. transfer: 'Nn SfiSreti may " - be aransferred to a transferee "ot_her than a. California Pulile~ Agency. or the `Trust itself: Ariy' a't_te'mpted transfer'a any oilier person shall be void,and of. no :effect. ' • ~: ' - , : Section. 6:6. Notices:, Any and, all notices and communications to whieh a Participant. may be entitled sliall be deemed -duly" given: or made :if ~detivered in person or mailed postage. prepaid„ addi•esse~ to :the Participant_,ciE' - record at its address as, recorded on the register of the. Trash. ~- In.addition to any .other notice or, communic;ition to which a Paricipant may be: entitled,. each, Participant 'shall he entitled to notice; of any aineridment toy this -' :Declaration of Trust., or of any matter which' is approved hy_"the ,Participants.. - . ., . Section 6.7. ,Approve Powers., 'The following matters alone-shall require, Elie; approval .of Participants 'ti') .: the appointment of Trustees as. provided in ;Section 2.2, (ii)'termination{ of ;the Trust;~as provided in Section '9.,'?.' (iii) amendment of'this Declaration of Trust ,Co "the extent.,provded in,-Sectiori 9 3;•:(iv).merger, consolidation car ' sale ,of,..-assets; of the .Trust as provided :in. Section 9:4, (.v) a change, `in .the investment i•estretions or fundamental . - - .. policies, set forth in the Information Statement, exeepr as set; forth therein, aiid'. (vr) such, additional mattcrti, .relating to the Trust as may be required, by ahis, Declaration of Trust, ~or, the By-Laws .-.or as° the Trustees . cna~. - consider necessary or desirable.. Participants shall; be entitled tc~ ~exerci e such; approval powers iri proportion tc~r 't the .number. of .full; and. fractional Shares held. • Shares. shall nit ties euinalated for .the< purpose, of. approving Tn-stees. Until Share"s .ace issued, :fhe Trustees-.may exercise ,.ail ,;rights of 'Participants a_nd may take :any acci~n "required `by .law,,this Declaration, of Trust or' the B,y=Laws to lie takeri 6y Participants: The By-Laws;,may .inclueir ,._ - .._. •. further provisions. for the approval .of' Participants sand related. matters. ~- Section; 68., Series off•`Shares. The followingprovisions pare applicable regarding the Series;of Shares ~~t:'~t•hr ,_ Trast° established: and designated by Section .C,:~1 hereof' and shall he applicable if: ahe Trustees. shall. e--stablishe anei - ,:. -. designate additiorial Series;as~ provided in that Section:: - ;'- ~ - .. (a) The number 'of -shares of each ;Series~ahat may- be issued; shall be unlimited.. 'The'Tii`stees inay classify or. _ -.. . -reclassify any unissued shares :of any. Series or any shares, pi•uvipusly, issued".and reacquired .,into one~~or m~rr_ - . "Series. that. may _be, establi bed ;and designated fi=gm time to ime. .Shares .reacquired'"by ahe Trustshall. be ~ ` .. . cancelled. and restored fo [he; sta_ tus of :authorized :and unissued. Sfiares undesignated; as to• Series. - 8 - i~ a , ~ (h) A1C consideration,;receve¢ by the Trust. for the issue. or sale of Shares of a. particular Series; together with.: all assets in which:. such consideration is invested or reinvested, all 'income, earnings;, profits _ and proceeds _ :.,thereof,: ineludmg'any'prmceeds derived from .the sale, exchange or liquidation of. such :assets, ,and any funds :fir payments derived from ::reinvestment of such proceeds in. whatever form ~~the same, may be; shall irrevocably hel~ng to that Series foi` all .purposes; subject only to the ,rights of creditors, and shall,ibe so recorded upon the_ '° hooks of account ~of ;the Trust. In the event that. there.. :are any .assets, income, earnings, profits, or proceeds. ,a p. y g• g ny particular Series, the thereof, o ~ , Trustees shall allocate themeamo g any one ort more~lof the Ser est establ shed and designated from time tci time in Such manner and ~on, such basis as they; iri their sole discretion, deem, fair and 'equitable. Each such allocation - ,:. • by the. Trustees shall he conclusive and hinding upon.:fhe-Shareholders of alt .Series for all purposes. (c)' The assets helorg~ng to~ each particularSeries shall be charged. with ;the.. liabilities, of the Trust. in respect of that- Series, `as will :all' expenses;, ,costs; charges and' reserves. ;attributable to that' Series, and. any .general liahitties, expenses, costs, :charges or reserves of the Trust wlxich are ;not readily identifiable as belonging;ao any , particular Series shall be allocated and' charged by 'the Trustees to and "a`rnong any one or more of ,;the• Series established and designated' frorri time. to .time insuch manner and on such basis as ttie Trustees in their sale discretion .deemfair sand equitable: Each :allocation ,of `liabilities, expenses; .costs;. charges and reserve's by ahe Tivstees shall be conclusive and binding .upon. the Participants in all :Series for alI purposes. , - - ,. _ ~ . (~) _ All dividends and distributions .onShares of a particular :Series. shall, be distributed •pro rata to .the holders ._ . of that, Series ~in,,proportion to the number-~of Shares of that Series held by such holders at the dateand 'time of record established'in the 13y=Laws for he payment of such dividends or distributions. (e) In the event of the. 'liquidation. Hof°'a particular Series', the 'P'articipants in that 8eces which is being liqudateii shall,. be: entitled to receive, when aril as declared by the;'Tru'stees„ the excess of the: assets belonging to that ;Series .over the liabilities belonging, to that Series. The holders of •Shares of any SSeries shall not, be entitled. thereby to•any distnbution upon. liquidations.of any<other Series°. The assets: so distributable,'to the Participants •in any Series: shall he distributed among sued Participants in proportion °to.~the number of Shares .of that Series. held. ,. by them and recorded on the books of the Trust. T?he .liquidation of any` particular Series in~which there are: - Sharesahen outstanding may be authorized',by,an instrument. in writing,. without°.a meeting; signed by a° majority. ' . • of the, Tn- tees then in .office:; subject to the: affirmative-vote of a majority- of the outstanding -voCing securities ~f . Ghat Series. (f~ The Tnistees shall: have. the authority to provide that the>holders of'Sliares• of any Series shall have~_the . right'to convect or exchange-.such Shares .for or_ into Shares of one or more other Seriesin accordance with. such. ~ ~: ... requirements and.. procedures as may he established by the Trustees. (g) The: Trustees shall have,",the power "to detemnine 'the designations,:;preferences,; privileges, 'limitations' and rglz"ts; 'including approval. and' dividend rights, of -each. Series of 'Shares. Subject to `the .provision"s of 'this Sect ion 6:8, all Shares of all 'Series :`shall have identical rights and privileges; 'except .insofar'as variations thereof•'among . Series. shall hake been ~deterrnired, and' fixed. by 'the Trustees. (h) The establishment and designation. of any'Series of Shares in addition to those established and designatt~d , in Section 6.1 hereof shall be effective upon the execution: by a majority of. the then Trustees of an instrument, setting .forth .such .establ`shment and designation and the 'relative' rights, preferences; approval powers, restrictions,,, `limitations as to dividends, qualifications,. and terms aril ebndition"s' of redemption of such Series ~~r. _ v as otherwise .provided.'in such,•insfn.tmentt At -any time, fhat there 'are no shares outstanding of°<any particular Series revtousl established and desi Hated, the' Trustees ma b " an instrument executed b ;a; ma'on of their ..' ;number abolish that Series. and ,the establishment and designahon ^ Hereof: Each instrument referred to : in this paragraph shall constitute an amendment to tfiis Declaration of. Trusts ~ . .,,~ _ ~> AR'i'IGIjE; VII. REDEMPTIOMS~ ~ ~ -_ Section 71 Redemptions.; [n casE any Participant at any time desires. to clsp~se caf its,,Shares, it nay ~ deposit,;a written ,request or other Such, korm..of request as the•Tnistees may from time to time authorize, •at t'he " office of the.'transfer agent or of the office Hof any han;'k or teas[ ec~mpany,:either 'in <~r ~~utside ~~f Califor,nia whi~~h. is a •memher ~~f the Federal Reserve :,S'ystem 'and wh•tch the Crantifcr itgent has elesignatec7 in w~Ung;. tc~r that • purpose. to have the•.Shares redeemed by the Trust at.,the, net asset vafue..therec~t per Share next determined after ~ . such depos,t •as pr~~,ded in ,the 'B,y'Laws Payment; for redempti~~in Shall he. made to the Participant within [tie: number- of husiness. days specified in, the T'rust's current [nbrmatwn titatement, unles"s', [tie. date of ,payment. is • ;po~t[oned, pursuanr'to Section 7.2. hereof, in, which event: payment may he _delayecl heyond..tiuc,t pencil, ~` . , " Section 7.2 Suspension of;Right off`Redemption The TrliStees, may, ile~lare;;a sutipens~on of the~righl cat _ .- , redenptton or po~tp~ne, the date of payment'<~r redempt~an• t<~r t~he• whole .car any ,part <~f--,any peru~~d,) ~li,rn); which .the Ivew York. Stock Exchange ;is closed other, than custcimary wetkend .andJ holiday clbsinKs (;ii) during . . ' -= _ which trading ^on [he New York Stock Exchange ,s `restr~eted; or ('iii) during which .an, emergency exists, as°a rc~ult of which disposal by the 'Trust of Securities .owned. by ;it is not: reasonahly practtcahle ' car, tt ?is ^not re:isonat~l,y'°,.. - r "practicable 'for "the Trust .fairly 'to: detecrnine the~"walue- cat its net itisctti:~ Such suspension shall take effect at x,c•~h ' time,as'ahe Trustees :Shall specify':h`tit not later than, the close, of"'husiness on 'the husiness, clay next fcSll'owing the ' ,suspension, and [hereafter there shall', he no rtght fit redemption or payment- on relempton~i,ntf h 1Ti s osh ll d ~' '" " ' ~~ ,, t e u tees a eclare the sus enston at ~ , p an end °excePt that the suspens_iG"n shall' terminate in' any e:~ent can.. - ~ - `the ftrst day•on which the New 'York Stock Exchange shall,:have ;reopened oc "the, pertod speuf~ed to Ci`) or (;ii'i) " shall -hare expired. (as to •w•hieh the; determination of the Trustees shall, be c:onc'lusiye~). Cn the: case cif a suspension of ~ahe right oE':redemption; a Participant .may` either ,withdraw its. request fear redempton. ~~=i"r receive , payment based on the, net assef .value existing-rafter the terminati~:~n of, the suspension. _ ' ' f. Section 7.3 Redemptions: to Reim6ulrse-Trust for Loss on Nonpayment for :Shares o~ir 'for' Other i - E ;~, n Charges Ttie Trustees shall ~have~ the power to redeem Shares ~iwried tzy any `P-articiparit to the extent necessary° ~ , (~i) to: reimburse ..the Tres[ foi•' any loss it has ,sustained by reason of the failure of such Parttcipant to make frill payment for: Shares purchased hy° such ::Participant;; or (~ii) to collect any charge•.relating to ;a ^transaetion `effected " . for the-!benefit; of such Participant which is applicable to~-Shares as provided in~ahe Information Statement Anv . such redemption=shall be, effected.at•the~.redemption; price, determined ;in accordance. with S'ection~ 7.1 hereof.,:. Section 7.4." Redemptons;;Pursuant to Coinstant Net.Asset`Yalue':Policy. The: following provisions :tih~ill apply' to~.any Series of Shares of ';tlie Trust during 'any petibil "that [tie; Trustees, in their discretion, estahlc'sh .a • policy ;of maintaining a constant net asset value per Share: ~ Gf' for any reason `[fie, net ..income of .[fie Trust y - .. attributable to such. Series shall" at the time of an deterrrii'riatton thereof in accordance with Section 8.1 here>f; .~ ' , ,,. He a negative: amount, then the,_Trustees shall. have. power to cause. the number of outstandmg;;Shares of, such- Series: ;to be ,reduced by .requiring each Participant` to, contribute to [tie capital, of` the Trust, such Part~tpa'nr: " ..,proportionate part ;qf the total number. of Shares of such Series which have; ~an aggregate current net asset value g . equal a"s..nearly as may. 6e practicable to. "they negative samounf cif the' Trust s .net income: - `Each Participant, h~~ .~ , _ ~hecoming a registered holder of.Shares,;•agr`ees to make any such ecintribntion which maybe required,, ~ • . - Section 7;5. tedemptibns itn Kind. .Payment for Shares redeemed pursuant to Se-coon 7:,1 aiia.y--, at ^the: ,option, of 'the Trustees, or' such; officer,• or offcers as;ahey may duly. authorize for he purpose,, in theta cam"plea, discretion, be made in cash; or in kind, or" partially :in cash..and part-allyn kind, In„case" ofpayment iri kind,, t}c• Trustees, or their d'elegate_.,, shall; have ~atsolu,te: discretion' as to what security or seeurities'shall be dtstributed:`n . _ ,,., k~nd;and the.amounrof•the;same, and.the securities shall be vilued foe purposes of dtstribution.at the 'figure at which, they were yappratsed:;in computing?. the; net asset val"ue of the Shares. Section 7.6. Minimum' Inge$tment Tfie Trustees shalh have the power'fo ftx the minimurri~~ :investment for . _ : `P,articipa"nts expressed in dollars: or S}5ares,, or both. Whenever a.'Particpant's investment is less ,than. h~, ~. f;: mintinum established by 'the Tnisfees,• the Trustee"s may "redeem the" Shares of° such Participant„ provtded th,rt~ days prior notice •is ,giyer% to..sueh Participant.: If the Trustees"change the. minimum. investment' to. an arribunt" -. . - .. n ,. : . to `. - ~ s' . -_ - ~ •.e ~ +, greater ahan the investment of any Participant: at the: time, that such change becomes effective, thee. investment of such Participant shall not be redee"med without such Shareholder's.~conserit. ARTICI;E VIII:. DETERMI1VrLTIO1V' OF: NET ASSET`VALLTE, NET' INC011~E' ANI)'DISTItYBUTIONS p ~. set, Net income and Distrib~ition Procedures` The Trustees, in Section ~.,1 By-Laws to Govern Net As their absolute. discretion, ma rescribe and shallset forth in the• ;By-Laws such bases and fimes~ for determining,. YP- the .per Share ne.G asset value of the: Shares, the net: income of the. Trust,,. and the declaration and payment of distrihutions, as they may deem necessary or desirable, • ' AItTICLE.IX: DLTRATI®N,'TERMIIVATION AND AMENDA~IENT Section 9:1. 1~~~®n. The. Tc~u t shall. continue without. limitation o'f time. but subject to the- provisions of ihiti Article IX. ' Section 9.2; Terininadon of Talest. • Ca) ~ The Trust may be terminated by the vote of the majority of the authorized Trustees; sutject to approval by' the approval of the 'holders 'of ,not `less Phan two-thirds of the Shares ~_ outstanding. Upon the termination of the Trust; ' • .: . (.i) The, Trust shall carry on no activities except; for the purpose of wording up its affairs; (ii) The Trustees shall roceed to'wind, up the :affairs of` the Trust and all. of the.. powers,of the Trustees under P this Declaration of Trust shall" continue until the affairs of the, Trust shall have ,been wound. up; including-the power to fulfill. or discharge the cont;acts of the Tnast; collect itsassets, sell,. convey, assign,, exchange, transfer or . otherwise :dispose of al.l or any, part: of the Trust ,property to one or •rnore: persons at public or private: sale for :consideration-which may consist,-in whole or `in part of cash, securities or other property of any kind, discharge ` p y - : ~' e to aiquidate its. Business; provided that. any sale.• . ur a its liabilities, and do all other acts appropnat P pertY conveyance;. assignmerit, exchange, transfer .or other disposition, of •all or substantially all ~he Trust ro shall. require .approval in' accordance w-th Section 9.4 hereof; and . K - ('iii')~ :After paying or adequately providing for, the payment. of all liabilities,. and upon receipt: of such releases. • indemnities :and refundin a regiments as they deem, necessa ; ~ 'for their i•otection, the Trustee`s. may.distribute the remaining Trust ,property;. in cash..or "in kind or partly rn cash and partly in kind, 'among the Participants according to their respective beneficial interests. on tot ~ _ ~ _ P (b)~ After termination'. ,. •t of ' of the'Tn-st .and d eco ds of, the. Trust an nstrumerit in writing setting: forth the fa the S_ g such terminaauone a_ nd the T~ tees shall thereu n be. "discharged from all further' liabilities and: duties hereunder. grid the rights and interests,of all Participants sh 11. thereupon cease,.; __ _ - _tion of Trust ;may be amended by the vote of ta.~~• -Section,9.3. Amendmnent Procedure.; "(a)' This Declara Trustees, suE~ect to approval of such amendment by a majority of the ;Shares •outstanding and by, _a majority .,~~.t the Shares of any' Series affected 6 such; amendment: The Trustees;,may also amend this Declaration of Tn~-~ Y' without such Parte~parit approval•tb.change 'the :name: of the 'Trust~or any Series, to establish and designate additional- Series, to supply any ,omission herein .or .to~ correct or, upplement any ambiguous, defective ~ ~~ . inconSisEent provision hereof, or ~f, `they deem it necessary," fo .conform this. Declaration 'of Trust to t't ~~~ requirements of applicable laws• or .regulations or to eliminate or reduce any taxes which may be payable by rhe- Trust or the Participants,.but'the Trustees shall not be liable for failing`Co do so. `(b) No amendment maybe made under°this Section 93 which would eliarige any rights with respect w .~~~~ Share• by reducing 'the amount -payable thereori~ upon liquidation. of the Trust or by diminishing or elirninau nit any .approval rights .pertaining,. thereto, except with the vote pf a majority ~of the authorized Trustees and e 1;~~• .approval of the holders:of two-thirds of the Shares outstandtng~and the holders of`two-thirds of the Shaves of any ii ! ~ ~ tierces affected h such amend ~ •~ _y __ment.; Nothing to ~thrs :IJeciaration of Tntst shallf~~erm~t i[s am.endmenC tc~°•i.~ip~nr the. exemption from. personal liahility of the Participants, Trustees, ciffcers,~ emplciye.es anil agents of •thc. Tr:utit e>r to permit assessments :upon Rarticipants: ~ . (cJ A ~certtfeate signed hy'a majority of the'Trustees setting, forth.an ameridinent ~and~,reciCitg that. it w~iti ~ful,~; adapted by`-the `Truuees and/"or' by ahe'Parttc[liants or;a copy c>f '.the De~lacatizan of`Trust a;5 .imended,. ~~nct ~ - esecuted• hy~ a majority ~f tie Trustee`s, shall he e~nclusve evi'derice of siieh amendrne;nt when h>dged among • the records of the Trust:, ~ ~ - , Section y.9.4. ,Merger, Consolidation and Sale of Asset, To the exien"t permitted by Ia,w the: Teittit niay . merge into ~r «ins~lidate withany, ether c~rporatgn ass~acratii,>>n; mist, or richer organizatie~sn c.tr `inay Nell leatie <ir • exchange :all or •suh~iaiatially• alh of the. Tnnist pm,perty„ including, its good will,, up2.zn .such terms and conc7itic~~ns :and Eor' :5ueh corisidera"tion•'w-Tien. a'nd ati.`authoi ized 'h;y vc~Ste cif a majG.rity ~>>f the a7t~horized Trutit~e~ urid . - approved by the holde"rs of two .thirds ot: the Shares ~~utstanding and by the .holders, cif .two thirds c>F the ti'harc.-s of'ariy Series affected; _ ~ ~ - ~ I, ,, . . . . ,, ARTICLE. X. MISCELLANEOUS ~ • ~ - ., , :Section Y0.1. Governingalaw: This `Declaration of'T.i-ust is; executed ;hy the; [nitiaj 1?articipants -and deli,c~e-rr~l' '~ in the State of California and with ,reEerertce to the laws; thereot:~ anil~"the rights„ of`all parnes• aril the v-ahdrty'-arid ' construction of every 'provision hereof shall. be; subjec"t~ to .and. construed ,according, to,; the,laws of the ,State c>t GalifornZa.` _ `, ~ Section, 10 $;~ Couinterp~trts., This, Decl^aration ~f Trust'~ma.y ,he simulcaneousjy executed, in .several p _ shall' be .deemed, ro be an original, and such "c~~unterpa-r[s,, together; 5h51{ he . .. • constitut d one and thes!ame 'instrument, which, shall be •suffic_ently evidenced ny .any such original. cqunterpart. • .- - ,, Section 10.3• .Adoption by Califotrnia :Ptablic. Agencies: A f?nhlc :Agency .of' the 'State of*~,California may ,:_ - become; a .Participant, of~ this Tiust by .taking appropriate ;action ;to ai_iopt this Declaration of Trust 'fuintshng .thee _ `T " Trust with satisfactory evidence that such .action has been °taken,,•and signing; a countetpait of,;fti`ts Declarat~~ri ciF , Trust:. A copy. of this :Declaration of_Trust may be adopted through incorporation. by reference -into an.ordinanre or resolution, of such P.ubjic.Agency,.~ard a certified copy~of`-such ordriance`or r"esolution~shall contittut;e` satisfactory evidence oE,adbption contemplated by~this Seaton'. . ~~ ~ `~• Section 10.4, fxrtilticates. Any certificate :.executed by an individual~~ who, according o the. records c~~F rhe~ Trust, appears to be a Trustee hereunder or Secretary or Assistant Secretary of. the Tiusr, eercifying~ to (,a)~ the'. nitrnber or _dentity of`Tivsfees or 1?arttcipants,;~(.b) die dues authorization of^•the `execution of any instrument c~~ ,. . writing, (c)"the fo"rm of any'votevpassed ar;a meeting of Trustees (d) ,the nurnber;of Trustees, present ors voting at any' meeting, (e) 'the form of `a.ny By-Laws adopted by or the identity" of any-,officers elected ~by the TruStces.. cr~ (f) _the existence of Fang fact or facts which,`in any manner reiate,-to~ the affairs of 'the Trust;; shall be, conclutiiu>e_ ev-idence as to the matters so ceRified~ in:fayor,-of any°.person dealing... with the Trustees _and theirsuccessors. ~ ~' Section 10.5:. Provisi®ns n:C®~i~4'wit~ L2~w:oir ltegulatio_ns (a) TYie: provisions ~of this Declaraticin:~cit . Trust are severable, and'if,.the Trustees shall<deterinine, with the advice~~of counsel;, that, any 'of such' provisions is' ~ • in cgnflict with appl>cable, aws and,regula_tions, "the cor-tlicting provisions shall ,be ,deemed "superseded hy, surh, - _ ~ - laws or•regutations to the: extent necessary to eliminate sucheonflict, provided, however;!thatouch•determinatic-~;n ' shall nor affect. an of the remainin rovtstoris =of this -Declaration of-Trust or xender'°invalid :or improper any action taken.or;omitted prior;fo such, determination:: ~ - -: ~ - < (b) If any provision of, this Deel'aratiori< of. Trust shall be' held 'invalid or unenfotceatile in any `jurisdiction„ ,such. invalidtry.~or unenforceablity shall.,pectaim orily, to such provision in ,such jirisdtction and, shall' not in any manner affect; such provision; in• any other jiirisdietion or any other .provision of this, Declaraton of `Tntst 'in ariy. ' ,jurisdiction. - --~ - . -_ .,. Section :10.6. Index and Headiings for Reference Only. The index and headings preceding the text, articles and,sect~ns-hereafhave been.inserted for convenience and• reference only and shall not be construed to affect the meaning; constructon~or; effect of'this. Declaration •of Trust. ~ , Section 10:7. Successors iln Interest. This Declaration of Trust and ,the Bylaws shall be •biriding upon and inure to the benefit of° the undersigned Initial Participants and their successors; assigns, heirs, distributees and legal cepresenta,tves; and every Participant and its successors; assigns, heirs,. distributees and Iegal representatives. . IN WITNESS VG'HEREOF, the undersigned have executed this Declaration of Trust as of the date first hereinahove set forth. 'Ii~dbN'I'lER1EY. PENIr1SULA: WA'I"ER PLACER COLJIV'TY iNANAGEIWE]VT DISTRICT E3y: /s/ Dick Heuer - By: /s/ Alex Ferreira Name: Dick Heuer Name: Alex Ferreira Title; Chairman Title: Chairman, Board of Supervisors The undersigned Public Agency hereby represents that the: governing body of the undersigned. has duly adapted by appropriateaction the. "Declaration of Trust of. the California Arbitrage Management Truss (the "Tn~st'')' dated. as of December 15; 1989, hereby executes such Declaration of TrusC_ and,, by such execution, hereby becomes a pasty to. and Participant of the Trust; and agrees to be bound by all the provisions of the Declaration of Trust. Date: Public. Agency: • 'By: Name: Title: ,. li F~LFTTBIT B Nov~,Mti1:x 13; 1990 `" Califcxnia :Arhiti•agr Manal;ement PrrJl;ram is a tiervirr Mark cit the Calilt~mia ArhitraKe,Mana~en)r:nt Trust. 275 l3attery Street, Suite 2140 tian Francisco, CA 94:1"1,1 1-ttW-729-7665 • TRUSTEES Nancy E: Hicks,,_I). resitlrnC, l~cc~ctur of /•'i1lu1lce-/7ri'uslrrer, City of Lukc'uax~d F.:Earl Corm,'Secretary, Treusurc_r-Tur C'u!leclur, /'lucc'r L'U!!)lt y Conny M. Jamison, 'City Treusttrc r, City of •Su)t Dicl;g James S. Kennedy_,`Treasurer, 'Trecuurer-Tux Cullcetor, lilbu Culiifttir ~ ' Robert C. Leland, h'irlunee Dir~etur, G'iry i f'~'airficlcl Ron'Zenlt, 7reci~lirer/!)irectur of Firiuuce. urld ,9iA1linistruiiott, /-vine-Runch Wa1rr~Uulrict Ti\BIE OF CONCEM'S NJ1;r 'I~nleti-r5..anJ-K9flicrs...._:.rr._:_ ....:........::......:..........:............., ..._.:......... ~~ ,Invcautlcm Olijri'ii~~cs JnJ 1'olicks ........................................ .............._ 5 I'r<k'iJylrs.li,r i'artiiipatinµ in the NruKrrm .......................... ................ n Huw u,lnvcsi ...~ ...............................:..............._,..................... ................ n I~t,N' l,1' Vi~lIItCIfJW' ...............:...'.........................:.......:..:......:..... ....:..:....... IU e;rn. ul I'uGi'ic~ GunirlninK ArhilrJµr Rcliaic ~ I I Exirp[iun".k•rviirs ..........................:............................ HrtiJlr~ ~ ~ ................ I ~ ' Krhrlc C.il~ulutiun_.Si~l•,vi~r+ : .................. :........... .. 1 .-..........,,... I . (•)Ilii•r tirn'icrs ~u NJnlclt78n11 ................................................. ................•I S I)aiiy Incumr JnJ.lliyiJcnJ+ iIF thr Nix,Is ............................ ..........:...... ti ' ~':IlllJtlllnl,l Nlli)I.tillarl•1 .:................:.................................... . .................1 1 .. lSirlJ Inli,nnatjim ..:................................................................. ................. I-I IrSJiviJuul Nunbilius ....... .. ' ........... .. ........ .... . ...... ,... i-~ Invriuucn[_AJvLxrunJ~.AJmint+trrux ..::.................::........... ................. I S Cusu xll:m....,:: . ..... ........ 16 Rrhatr CalculrUOn AKrm ....................................................... ................. 16 AuJili,c ........................................:....:..:................................... ................. 17 Cuumcl ..... ~.'....,. ... .. ...... ..,.... .. 17 . .... . EXlxn.+rs uf'ihc I'rugrrm ................:.... ............ ...... ... . ...... 1? ' ~•JX ~iJlll'f.~... ,... ..... .......... .......................... .... .... .......... IN Ik'si fll)IIUniJl ,l )C'CIJfJlllln ul ~•rU]t JnJ tiilrfl'ti .. ..... _ ................: IM Naniiipant anJ Tru±trr Lirllility ............................................. .............. I `1 Anat'hnxril A ' Alcxlrl Orilin~nii~'Keulution .:........ ............ ........... .. ..........A-1 AiiSclimrnt i Aii`uunt Hcgistrrtiun Flirin ., :............................:..:....... . .:.............li-1 ® 1')'X1, GJlilumir Arbilrrgr MxrugrmrnGP:rgpr~m '', C A L I F O `R N I' A • A R B I T R A G.:E M A N S C. E Iv1 E N T P R Q G K :-~ ~I INFURMAI'IOIY' STt~TEMEN'r pA1'ED NOVEMBER 13, 1990 Thin: Ink~rmauon :~tiiten~ent contains information regarding ~,he Calift~rnia' ArhiCrage` Management ,I?rogr.~m (the "Progrim" ); ~ti.hich .has been est;hlcshed t~ prcivide any Gal,ifornia Public Agency (as herecnaher .defined), together with any bond tricstee acting, z>n behalf dF such Public Agency, ass-stance with the investment of and. accounting for.hond".proceeds in compliance 'with the:. arbitrage rtmanage.ment and rebate requirements, of ttie Internal Revenue Code. of 1986, as amended (the ~~Internal Kevenue Ccxle~' ). "I?~ihli~ ~Agenc.y''",includes ..lout is 'not limited to. an,y Califori--ia county,. county hoard. of education, county .~iperintendent of schools; city, city and county, public' corporaticin. public... district, regional transportation cornmissican or :titate' ilepartme:nt or agency. The P~cigram 'consists of the California. Arhierage :~lanagenient TrustYthe "Trust"), a California cc>nunon law tnrst organized in 19H9 that currently offers three professionally managed money market investment portfe-~lios, a "I'reatiury Pt~rttolc~;;;a Federal Portfolio and,a. Money MarkerPortfol~ (c~llec[ively the "Poolss''), to provide Public Agencies with a convenient method of p<)oling proceeds' of bonds 'and notes for temporary investment pending •their expenditure. The Tinist als(>> provides record 'keeping, custodial and :arbitrage ;rebate caleulaticin services. As part of the; Program,- Public Agencies may ~ilso establish individual.; professionally managed ,investment accounts ("Individual Portfolios") by separate ~igreement with the Pcggram's Investmenr~Adviser and ocher agents~'(See "Individual. Portfolios.':').The Individual Portfolios phi not form part cif the assets of the~•Trust`' . m~sEl~rr oBdECTIVEs The I'ocils seek to,.attain as high a leveL;of current ;income as: is. consistenrwith the preservation of. principal T,he Pools. purchase only investments cif the type in which :P;ublic Agencies generally .are permitted by statute t~ invest' the: proceeds of their own bonds. However, the charter of a particular Public Agency or fhe `trust indenture or ordinance or resolution under whrch its bonds. are :issued may !impose additional limitations. ('See "Investment 06jectives and Policies.") THE'TRUST' The Trust is governed.. by a Board of'six Trustees al,l .of'whom are otficials,or employees of Public Agencies. The Tn:,stees~ are responsible for setting overall policies and procedures.for,the Trust and for hiring and supervising, the activities of the Investment Adviser, Custodian,,:Rehate'Calculation Agent, and other agerits~of'the Trust. .. ~ , IlvVE.STMII~d'I' ADVISER AND ADMINISTRATOR _ The. Program's Investment Adviser and Administrator (.the `'Inwesiment Adviser") is Public Financial Management, Fnc.. 27T Battery Street, Suite 2140, 'San "Francisco,.. California 941:11•.. CUSTODIAN First Interstate Bank, 345 California.S.treet, °S,an Francisco; California 94.104 is custodian (the "Custodian").for all Trust rah ..and investments and all cash and investments.of Individual Portfolios. COUNSEL AND REBATE CALCULATION AGENT, ;;~ ~~ :; Orrick, I-Ierrington,t~ Sutcliffe, 400 Sansome Street, `San Francisco; California 94111, is counsel ("Counsel.") to the `i"nr<.i and also provides rebate calculation services. AUDITOR The. financial statements of the Trust will' be audited annually by Price Waterhouse, 5>5 California Street; San Franc i:.~ ~ >. California 94104. For further;information :or.assistance, call toll free. 1-800-729-766:>_ THIS. INFORMATION STATEMSENT PROV®ES_DET'AII.ED.~TFORM't1TI01V ABO>(J1' ~7E~ PROGRAMS. ]E'I~A.SE RE.aD TT'CAREFITI.I:Y AND RETAIN°TT.FOR,`k'[TTIJRE REFERENCE: ` . ;.: ``~ C A ~I F O `R~ N ~I A A R B' I. T~ R A G E ~NI A ~N to "G_ E 'M E ~N T P R O G 'R ~ t> -- . .-. Y ~S The Trust-was estahh5hea as a use arafe ublic a enc under r~ivitii~ins of the: Cahtcirma c~~mt ,Exerc~st of I o h ~' ..., g y .'~ l? 1 '• ~ w'erti Act " t~~ provide California PublicAgencies, with comprehensive, investment. management, ac«xmtmg anti arhitra~e rebate cad- eulation services for proceeds•c~f tax-ezerrm}~t financings. The,TniSr currently ~rcavides three, tihort=term, investment ,porctolioti. a:Treaseiry l?~~rtfdlio (the 'Treasury 'Portfolio"); aFederal Portfolio ('the 'Federal. Pc~rttolic~'')~anel.a M<aney Miirkec+P~ittcs~lic`i (;the `'Money `Market Portfolio ), (collectively the `'Pools") as;a means• for ['uhlic ;Agencies tci invetit these firt:~ceedti.. 'Public. . Agencies'ahat invest in the `POo15 (;ParticipanCs") purchase shareti~oE~heneficial interest in the approprr~tc., I?s>I t'`'tiharts':):- • • .• I. I'irtieipants may -also establish mdi'vidual, professicmally managed in~~esunent aceoiuntti ('?'Indi'vidual ['o=~ittol~t>s"~) `hy se}~ar.ue agreemeni with thg.Investment Adviser. ~ •- ' . Through appropriate, combination 'of investment in .the P,cx>lti ,rind Incl'ividuat Porttc•lic~ti the'Prc.~gram peeks tc~ pri>~ ide the following benefits:. ' ~ Arbitrage;RellDaLe Compllanc~The ,Program is designed; t~> atitiitit P irti~ipantti, in complyinK~-with cetain art~itrage rt.h -tr: requirements of the Interriat Revenue. Code., Investments area.<puruhasr:cd::and ~rivestrnenf, doumentaticm, is ma-ntained I~y~'~ the Program in accordance- with requirements cif [he Internal_ Izeven fie C<arie, and Rebate C.rlulation Reports; are lirepared~, for all :Participants by the Rebate Calculation Agent in a ;manner and, ai such, tunes ati to, enahle'Participantti,~to cc"~rppay w ith% ..these: requirements."-,.The Program'is also designed to assist Particip rots, in determining whether they have tiaUtited the erpen- :diture test for:any'availatle exceptions to the arbitrage rehate:.requrtilrents, and.to prcrvide=calculati~~~ns.c~f'pen.ittic.ti~drit: ' in lieu of rebate payments, ";, . _ P~servation of:Prlnciipal-Investments are made only in high. quality, -mteuments in which Puhli'c. Agencies. Kentr~rlly° ",are perriitted',by California statute to invest [heir bond. proceeds; and~in accordance with certain <•xher investmenr,;polic'ic~:. designed to preserve:.capital. The Pools seek;to mai'ntain.a; etm~t~mt net astiet value cif $I OO. per-share. :. - ' yai~uidity-Investments,in the P.ools_'"may be made at any time, anti Participants.inay' withdraw fimd5 from a ~Poc~l ~t in~~ time to pay for the costs of projects for .which their Bonds were issued `, .: ".~ M1 ' Incoffie-The. Pools seek to earn the highest;ncome" consistent with preserving principal and riatntainin~ liyu~~lii~~_` . `. . Conveniefice Participants m' he !Pools•do not have to,schedule: investment maturities tom' meet: prolect'.draw 5~~he~lc~1~•s. ° - .. - - , Professional'A~i~tageffietat-Investments are managed by mvustment,professionals that fellow hoth:general, e~onc,,~"~u~' and current. market. eonditQns affecting interest rates:, .-. Diversiticatilon-Each Particpantin'the Pools will,own Sh}i'es in~a diversified~.portfolio~of high quality'instruni~~~t< ~ . Accounting, Safelceepi[a~,at~ S~aaa~ate Accounts-The Proigram. aecounts~:for. each Participant`s investments in ~ s ~in,_ ' pliance with governmental accounting `and auditing requirements, and does all. of the bookkeeping and safekeej-in~; .~~~~~~~-- _ ; .~ dated with ahe ownership of.-securities. .. -~ .. 2 r _ " ., ,, .. ~ _ ~ ~:~ .: A C I~ ''F 0. R ,1v :h A A R 'B I T' R' A G E` iY1 A N A G E ,M ~ ,_E N T,' P R O G R A :~~I _ DIVIDENDS -'The net inc~>me <~F each I?~x~l rs~calculated daily and dividend's. are declared daily. Each month dividends are'•re-invested in Shares of fhe~appropriate-'Pool. (see"`Daily Income and Dividends. of the' Pods.") HOW T® OPEN AM ACCO.iJN'i' Te~• participate in the. I'rc~gram, a Puhlic ,Agency must enact an ordinance or adopt a ,resolution, as appropriate,' and sign a~ conformed copy ot: the _Deelaratic~n. of Trust: (See °'~Procedures for Participating in the Program. ") 'Prior to investing any funds.. finder the I'rggram, an Account. Registration Form must he completed and suhmitted to the Investment :Adviser. Inv_ estments are made: by wire: transfer to the Custodian. Participants that'wsh to 'invest by check may .request an exceition to this procedure from the Investment Adviser. (See "How to Invest:")'' . ~ -I-IOVV'TO WITHDRAW FCINDS . Fund's' may he withd'raw,n .from the Pools ny wire trarisfec by calling. the.:Investment Adviser (1-800-729-7665) to initiate ::a requisiticm. Upon request,• the Investment. Adviser will provide. a Participant with. checks which. the Participant may make , j~ayah,le to any payee. When a check is, presented. to the Custodian for payment, Shares in the appropriate Pool will he redeemed'automatically.in the amount ne~essary`'to cover the check: (See "How to Withdraw.") COST Each Pool pays all of its expenses which ace,<acccued-daily as a deduction from income. The Trust has entered-nto arrangements for investment management and, administrative, .legal, accounting, audit,. and custodial services and also pays for organization and other ;costs. Certain costs,,:iiicluding ,the fees of the Rebate Calculation .Agent and all costs associated with IndividuaC Portfolios,, must' he paid by the ;indi'vidtal R.aeticipant. (See. ':Expenses of the Program:") . TAX .-EXEA~P-'I' BOND PROCEEDS ONLY . The ..Program is designed to~ invest exclusively, the proceeds of tax-exempt borrowings by.Puhlic Agencies: The -Investment .Adviser will not accept for investment iri: the Program. other `funds,of `Public' Agencies., i . s - -• , C A L I T O R N I .A ~ A R B I T ,R. A G E` ~ M A. N :A G E Ivt `ENT P R O G R' a :~L TRUSTEES AND OFFICERS The, Tnist~ curreritl,y h~i5 a _l3oard that copyists .of tix Trustees. The Tiiistees are; resp<~m-htie ac''t .and overrtiee- [he a~t-v iI e.~ z~f. the Trust, including formulation of its''°investment and operating, ~.c~lic-es. In •adeht-on, they . c,lc~ _ ~~f'the, Investment Adviser, the'Ci-stcxlian, and°the.Rehate•C;lculat_ic~n.Agent and monitiir the invetment peif~~ircaianct oftt~e' ' N~xals and the• method of. ~:alu-ng; their .shares.. ' es and Officers cif the Tr<ist ~-nd'their pr'in~-pal~ ~~~r~up~iuons ~an~l rxher The. narne.s and. hus-nes5 addresses. ~~f'the T,ruste 3 atfilrati~ns dur-ng,ahe. Bast five years are as, fillowti: ~ ` - . Nancy.E. )Eiicks; Trustee; President offhe Trust: ,I?recti~~r of Finance/Treasurer, City of t~kewx"xxl ~USO Clark Ave,nue., _. Lakewood, GA 90714 tiince 1980 Past.P.res-cfent of the Californ-a S~ic`iery'~~f Munic-pal;Fin.-n~e•Officerti (C~MFO) and mtmherr~f thc. li~~r-rd c-t [)-rc~tr~~s of,[he CSMFO since 1984; 'Chairman .cif the Enan~e Comnittee'c~t the Si~x-thern C -fifi~rn-.~ ];omt l'inver~ [nnur.-n~e , Authority; 198E - 1988.. First-Uice'President, Geague of`Cal'torni: C-t-es~F-scal..Ott-~ers i~ep~irtment, ~• F: Earl (;oAin,'Trustee, Secretary of the Ttu [. Treasurer Tax Cc~>llectcir, I'l:ic.erGc•aunty; ;137. Eulweiler: Avenue, Aulaern'; since 1958.: CA 95603, ; ' Past 'President of the_.Galifornia ,Association <f County Treasurers and Taz~ Gc~llectors and the National As~o~ iat~ic.m. ' of County Tce35urers anil,F-nance'Offi~ers(-NAC'I'FO) C~irrently the Tax Cc~~llectors:''Leg-slat-ve Cha-rpe~s<m to>r'tht California Assoc-ation of;Count Treasurers and Tax Collectors, Y ® nn lyg, amison, Trustee, Cit Treasurer; C-ty bf 5an DieKc~~..202 "C' Street San; D-ego, CA.92?lOl inc~ Ic)~?. , g inept Ccnnnuttc ' ~ Y ~ y the Catih Nlaiia e' _ e c ~f President-elect of the ,California Muriiripal Treasurers Atis<~xiatiort Memher ciF •~ • ' the. Govermen[.Finance Officers Asscxiation~(GFOA), .and' memher.•i~f the I3c~ard cif Tn-titees of the San h~~-s~~, ~ ~i~D` _ .. . Employees :Retirement System,," - ~ - ~ ~ - - ~ . .., ~ " James S. Kennedy; Treasurer `Tiustee, Treasurer=Tax Cc'~tle~tor, YuFia County, ;215 Fifth Street [vtarys~ -ll<<. '~ ~ `~~`?~ l 1,.. since 1980;: ' _ ty r _ . .. ~ „~ ~ I chc Director of the-;National Association of Coun ~ Treasurers and.;Finance Officers (NACTFO), 1'asr: Presic~~~~- ~ ~ . Galifomia. Assocaaon of Coun, Treasucers:'and Tax Collectors„ :1:987 = 1988. Current; Legislative C~x>rclinat t: the _ - tY • . California Association of County Treasurers and Tax Collectors:,.. . Itolt~ert C...)Leland, Trustee,'Finance. Director, City of'Fairfield, 1000 Webster Street, Fairfield,, CA 9~+~_~_~- +~ c ~ ,inr~t o. ' ~ he redeyelopmen[ a envy acid re);i~ ~~- ~ I ~cw ~ r AIBo De u Treasurer of the Ci of Fairfield and'financtal officer of t P ~' district Assistant .Finance Director,and:-Bud et Officer for .the City of .Sacramento, 1981. 1984`_ President c ~t i i ~ ~`~':«<« of California Cities Fiscal Officers' Department and member of the $oard of Directors of tie Californiac • ~ Municipal`Finance Officers. '. . .• ... • Roin..Zex~, Trustee,, Director:of Finance and Administration/Treasurer, Irvine Ranch Water_:Di tnu. 1~`~`+~ ~= `{ +!:~ ~c-~- Avenue, Iivine; CA 92715; since 197,7... - >>- Ctiair of the. Revenue and Dues,Committeeof ftie Asscxiatign of ~alifomia:WaterAgencies (AGWA) .t°.~ •~.~~r cat the ACWA Finance•and Accounting PaneL:Member ofahe American Institute of°Certified Public A«<~i~n~ : ~~~ thr' National. Association of: Accountants; ands the ,California Society of Certified. Public: Accountants: ! The. Trustees are appointed by the Board of Trustees and a bproA eric es alartb~patingiPn..the Trustaat Ica<t • •,.~. ~>t t-h~• Trusteesnmust beeoher of memsber of the gove_r~ngabody,oan officer; or:a full-p[iirie emplo ee of:a California. ~~ ~~~~~~~ .~~ e`tt` y _ ~ ~ ~' .4 - i C A, L I F' :O R- N. I; A A R" $ I T. R A; G E IvI ~, N A G E M E N T P R O G R' .-~ :t i ;an~l;:a public district•so aong~as at .least one {?wblie Agency :from-that el:-ss is a Participant of the Trust: The Officcn c>f the Trutit serf-:e at the dscret_i~n•c~f the I3oard of~Tri-stees; " The present,Tni.Stees'nnd Offcecs serve wthoureompensation, but -all' es~ept affiliates, cif the In~-estment Adviser; it anv. =dire ceimhursed'hy ahe TRtst for reasonable travel and ~cxhec out-of-pocket expenses incurred.. in connection with their duties as Trustees and Officers. ` ' INVESTMENT OBJECTIVES AND'POLICIES The Prc>gr:un is designed to: • Purchase investments; dcxument.-investment. transartionti: rind account for all fu"nds in a mariner that is in arr<ardance with arbitrage rebate provisions of he Internal Rec~enue Code and applicable regulations, ntlings :md procedures. d'reserve principal. ~ ~ ' " • Prcayide liquidity so that` Participants in a Pool" have rea%iy ,access to their funds fo pay for costs of projects. • Provide as high a level ot: current income'in each Pool as is; eonsi"sfent with preservation of;principal and maintenance «f IiyuiditY. There can be' no assurance tlsaf flee •ilnvestanent objjeetives of the Program will be'achieved. Authoriized Investiinents:'The Investment,Adviser will invest the cash in.fhe Pools and Individual Ponfolios exclusi~ e1y - , ;... in he :following investments. These investments are authorized ;investments under the California Government Code for all money belonging to, or in the custody`of, a• local agency. The term °local agency" .is defined in the California Government Ctxle to-mean a Californiacounty, city, city `and county, including a chartered city or county, a community colleKe district, or (>ther public agency or .corporation. , Cash in the T Pertfolilo'will be invested only in United States Treasury"notes, bonds.,. bills or certificates ~~t inclelx- reasua'S' edriess or other obligations for which the full .faith."and credit of the~Uriited States are pledged .for the payment of prim ipal and interest. ~ - - Cash in the Federal Portfolio will .be ingested "in: (1) United States Tceasury~Notes, bonds, ,bills orcertiEicates of indebtedness or other obligations in which tfa~~ toll faith and- credit of the United States are pledged .for the ,payment;of principal and interest; " (2) Obligations, partcipations~or other~instivmen[s of; or issued;by: federal home. loan-banks or the Federal I I. ~n~e Loan `Bank Board, or :obligations; •;participations; oc'other instruments;of, or issued. by; or fully guaranteed .~ ~ u> principal,. and 'interest by, the fFederal" Home Loan Mortgage_ Corporation or the ,Federal Natiorial ~t~ ~c~,.;.~~;e Association; and, (3) Repurchase,ag;eeme_nts with respect'to securities described in•paragraphs (1) and (2) above; provided ii~.~c tl~r .term thereof sEiall be one_ year or less.- Cash in the Money Mai'l~t PortfoDio'and `in.Individual,Po~tfolios. may be invested in those investments dro~.r~i K. ;1 cn paragraphs' (1); (2) and (3)' above and in'the following:. , =• ,: ~. ' (a) Obligations, participations or' other `instruments'of or isluedby a federal"agency or a United States ~c~<<•,r~:~~~•nt sponsored.enterprise°other;•ihan.those'described,in paragraph (2) afiove ~• (ti) Bills of exchange •or ime drafts. drawn. on and accepted by a commercial' bank• (otherwise known a ~ ~ ~.~ ~ • ~~: rs" • acceptances) which are,eligible'for purchase by~the Federal Reserve System; provided, that such 6anhen ~. , ~~p- tancesmay not exceed 270 days maturity or 40 percent oFthe assets :of the Money Market Portfolio or In~!:~ ~•.u~:~l - Portfolio;'•'and provided•=further that the~accepting bank has `the highest short-term letter<and numerical r:.;~~,t .~ C A L'. I F 'O . R N I A A R ;B. I T '~R A. G E. ~,NI~ A~ A G~ E. 'M E IV T- „P R O'' G~ 2 '~, .~i -• prcivided by Ivt~xdy`s' Investors tiervire, [nc. (NIc•xxJy'ti") <>r ~tanilacd''~`~ Pcx>r'ti~Ci~rlx~ration;(` titandard,~~c- l'cx>r~~~,)~, (c) Negotiable certificates; ~-~f'depcnit issued'. by a natie>nally e>r tit iCe:=chartered hank'c-ic a,~,tate cirEedaral ~a~n~;ti ~incL Irian ;asti~~ciaticm or .hy astate=licensed branch c~t;~a torei'Kn hank;. provided that nc ,ixic~re Chan 30'Iieccent of the assets. coif the Mi~ney Nlarket~:P.oitfclio or Individual I'i>itfcf_ia may. I~ invested in ceittcates of de fx~~~tt, and hirther pr€~vided that;the~senior deht.~~hligati~m,,cfsthe ~.uung-insu[uton:are ratcil ~'~AA" cx faetter hy. Ivtcxxly's c>r titamEl<+rel. ~ P'rior's; - ~ , r • (d) C~~innier~ial paper of '`prime" quality of the highest~rank~ng cr x~F the highest, Ictter,iind n~mcrical r iUng in ~pr<~ ;~' ' vide! .f<~r by `Mcxxay's ;or Standard. ~~i 1'cxxti prirvided that. the: `itisuing`c•{>>r7x>rti~~n iti. <a~garnreel and 'i>peru'ing'~~~ith- 'in the United States; has t~~~tal`~as5ets in excetis:e>t~~:700'rnillion,and his ~n 'A=' c>raiighec rating tear its cleht;'c~tlitr: F ahan-commercial paper, if any; as prcwided ~hy Mi~xxly°s ear Standard ~~-a'cx~rs and prodded frirther th~iC its n)atu city". may not exceed 1130 days. The M<mey' Market I'ortf~>lio or, Individual I'<>>rttolio~m ty nc>t c>wn uu~rr• th +n LU ' percent of the.`butstanding rc)inmercial, paper of'.an issuer :and n<~ iric~re than 15: perce-nt of"the i~setti cif tiic .. ~ '. Money Market Portfolio or-Individual Pc~rtfolic~ iiiay°He inverted; in ecnnmeccial paper unlesti the dollar_w~+,=htrd average maturity of ail cc~mmereial paper field by the• Ntone,y [vtarket.Pcirtf~~~lx~i c~~r:Indivdual Pc<rttc~lici does ne>t -' exceed, 3'~1 days,. in, whichcase nc~ mc~re'than,3Q percent of'~the,astieLti ciF'fhe• Money Market ~Pc~itfcilio.oc, Inch iehiuf l `Portfolio may he invested, in commercial pa tier; ; ,r ('e) Medium=term 'note"s issued~by corpe~ratx~ns organized and operating within the United ~tates~cr~hy deprn+tciry i'.. .institutions licensed' shy the United-Scales c~~r. any state anel operating witliin'the United Stated prcvided that ~urh .~ notes are rated''`AA"' or better 6y Mcxxly's, c.~r Standard' ~`~, I'ocar' , and;hirtter p'rcwided th"at no'-ric.ire than ~i~'h~r- '' cent of`the assets of the.Nloney Market, Pcirtfolic~ for' Individual; P~~rtfclii> may he, inveti[ed'in such medium i~•n~l notes; 'and . - .. - ... ~ ~ , (f) "Obligatgns of the State of'Califoi•nia or any, Icxal:agency wichin;the State;, including hcinds payable-sc,l~I.: ~,,[+t , „ of revenues from a.revenue-:producing property awned, .contrc,,~lled sir operated liy'the State or any lcxal i~~r~~• . or by a department', boa"rd, a'geney or authority <~t'the titate ~>r' any lcxal agency; provided that. the cil~l,)t~ u+~~inti, t: ai•e rated in~one.of the twq;highesi:categories.by Mcx3dy ti sir Standard~~ Pix~r'.ti ~• -" l~ . ; 'I'He~cliarter ofd Public Agency or the itavst~indenttaineroir ordnance~oir resohaton undeir~vvhitch the bonds: cif' . S cy Y' a Public more of the al>~v itna contai>Q vestmeiats. Accordiingly,P~lilchpAgencies stio~ o uld~with Eheir I~~al .:. ~iin one ozr _._ ' .. counsel oir~Ainaincial adviser iregarding itfie:l~aiiity of'lnyestitng end' piroceeds.under tlie~Mogra>Qa. . ~ ,, Investments of assets"9f each Pool wilQ,have°a remaining maturity ~f one~year oraess; and the dollar-weighted ,~ ~ ,;,,);e ;} maturity of'Pool assets,.wll' not.~exceed,';1;20.days Investments for Individual Portfolios`may-have a_:-maturity,gi~eat~r"t h.. r;, ~-s~~e l year. The repurchase date: of a repurchase agreement shall, be used. to ~deterrnne, its remaining.maturity. - - . Olbligations of;Agendes or Ynstavffieatalities of ~e LTriited Stages Gov~n>ment, .Certain hort-term ol~li}; ~+~< < ,.. ~>f 'agencies' or instrumentalities of`the United~~States Government purchased for .the Federal Portfolio, the Monc•;~ ~~ .r:h~•c Portfolio or Individual Portfolios may only be backed by ;the issuing. agency or: instrumentality and'^may not hc. Iru I, ~i >>~~ ' ahe~ full.farth and. credit .of •the United Stares. G'overriment. ;For example, securities issued, ti the'_federal home 'I~ ~ ~ n ~ ~ . i,i I;, .. _y and the Federal;"Home Loan.Mort a e Co ration are •su . " rted only by the credit: of the agency or instrum~ nt.+ ~,+ <" i I i.it g $ ~ PPO ... issued. them,; aril not ;by'the United States Government; andsecurities issued, by"the Feiiet•al Faun .Credit" Sytiteni .r~ ~. ~ +Ise .rat National Mortgage Association are supported 6y the agency'"s or- instrumentality?s right to borrow ~mon~;j Ir~.~~~r 'iae Fede . U'S .,. - Treasury under certain circumstances,. „ „' , '~ ' .: .. Itepuirrltase-Agreeffients. A ,repurchases agreement involves •the sale .of, securities to the ;FederaU'Portfolio or t h~~. ~ t ~ ~.r~~y 1Vlarket~ Portfolio or'to an Lndividual'Portfolio, and the concurrent agreement' by the seller.to. repurchase the=secunt+~•~ •~~~rliin 6 . ~. - ~, . . ". ,. `'-:C~~ A L I' F ~O R N I A: A ~R. "B I T R A G. E NI A N A G E M E~ N, T P -R .O G R~ ~I a !Specified period cif time, at an agreed. upon price, thereby establishing tfie. yield during the buyer's holding. period. The yield established' for the'reparchase ~igreemer-t is determined by current short-teem rates and, may he more,`or less than the interest rate <~n the iinderlying.securities. T.he securities underlying a repurchase. agreement are, in effect, collateral under ahe agreement.; [t iti the Prc~grarns policy to, enter into :repurchase agreements only with' dealers, in. U.S...GovernineriC securities ., which are .recognized as ",primary dealers" h-y` the F,ed'eral, Reserve System, or with comri-tercial.hanks that have. assets in .excess of $1 billion. Securities purchased, hy, the Federal Portfolio or the :Money Market Portfolio or. an Individual Portfolio subject to" repirrehase agreements are limited to'the obligations of the United Slates Government and agencies of the United titates~, but may have. maturities lc.~nger t11an one year. ,Ar;the time a repurchase agreement is made, ,the underlying securities will always have a market value at least equal, Co the~sale price. If an :agreement is' in effect for more than one da}•,.the Investment Adviser is 'responsible, for monitoring'the value of the underlying, securities arid, 'in the event ,their <<alue dr~~ps below the.. value required try ,the repurchase agreement; the .other. party is Yequired to• provide ,additional securities.; or money. All'securities underlying repurchase agreements are required to he delivered to the~Custodian. At'.the expiration ~f each agreement,, the Gust<xlian receives ,payment of~the repurchase price as. a ,condition for'the transfer of the underlying securities ,. tea the. other party. If, the other party fails. to .pay the agreed upon repurchase price.on the repurchase date, the risks to the Federal or.Money Market,,Portfolio or to-an .Individual Portfolio would.include:any decline in the value of the underlying securities. to ;an ,amount which: is aess than. tlie° repurchase price, any costs of disposing of such... securities, and any loss fmm any delay_in foreclosing on such securities: ~ " DmcaiYnentadon.:of I~tai'ket Price. TheIm~estment. Adviser will, follow certain procedures to document that investments are purchased at a "market- price" in accordance with requirements of the Internal Revenue,"Code andrelated rulings and regulations. These procedures~irelude okitaining three bids or offers for-allsecurities~transactions on he secondary. market, documenting transaction prices using, independent pricing services, and following: practices to avoid making " prohibited .payments" or receiving `imputed receipts" (as these terms pare used in fhe applicable U.S. Treasury regulations)' that irnpre.~p- erly reduce the yield on investments. ~ " ~' " Inyest~e_nt ltestta~icfitons. The Trusfees~have adopted.:,the following 'invesfinentrestrictions: and.fundamental p<~Ii~i~~ti.. which may he-changed only by approval of the`Trustees and•the Participants holding a majority of the outstanding ~hrres of each Pool. The Pools ,will not: ~(1) Purchase any securities o[herthan those described°under ":Inxestment Objective`s and Policies;"-unless California I:+w at some future dates redefines the, types;of securities which ale legal. iriyestriients for some or all classes of Parti~+h.~ts: inwliich case the permitted hive"stments for the P®ttfolio may be;changed by the Tcusteesto conform to Cal~f~'~rn~a _ jaw. No change iri ;the ,permitted, investments: for a Pool will be. effected`. without prior written, notifican.•n c~>• Participants in that: Pool.. • (2) Invest in,securities.of.any.issuer:in:.which a Trustees officer; employee;Yagent, or adviser of the Trust. is an ~ ~+;~, c~r. director, or lq% hareliolder unless such-investment is periodically autliorized.by resolutions adopted by a nr ~;~ ~%,r~ of the'Ttvstees who are not officers; directors or 10°lo sharefiolders•of`sueh issuer. (3,) ,Make loans, except that the Federal. and the'Money Market Portfolios may enter into repurchase: agreeme>>nt• (4) Borrow money or pledge, ,hypothecate,, or mortgage its assets to an extent.greater. than 25% of fhe. marker ~ :rl~,~• , ~f total assets of'each~.Pool; and then only as°a temporary measure for~extraordinaryor emergency purposes t~ t:+~ ~I~t.~+r withdrawal: requests which .might otherwise require untimely dtspositions of portfolio securities. All such, hi~rr<;u ~r,t~, must te• repaid befoe `the Poolmakes any .additional investments. Interest. paid on such borrowings will r«lu< <• ~+~•t income. (5) Purchase any security or enter into a repurchase agreement in the :case of the Federal.-and the Mone~• ~i.,~-.ut •Portfolios, >f, as a result; more than 10%'of `the Pool's total'. assets~would,'be invested in. ecurities subject to [re~tn~ ~ H ~iti: C .A L. [ F' O R N I, A A ;R B 'I: T R_ A G `E. :cUt `A ti A~_G 'E M E tic T P R 'O G R :~':~I~ on' resale",.tiecurities t<-ir ~ti,htcl'there iti',n<i:~eadih c~iiil_ahle nrtrl.et, and rcPurchase i);~eem~mts,with i~~itii"rtes ~sc~ce~1'- ing seen lay:ti. - . ; neither the Feder~il niir the iVtoney 'victrket Porifiihci will purch~cse tht see-unties ~ot my iti,ut~'e:c{ither Ciiah i>I,~li~; it~ins Issued and guaranteed as fo (~tincipal and interest by the 'gcn~erni~ent'of the Clniteei titatcs, fits tgencitti <.ir'i~nstnui~cntalifi~si ~'it, as :i result'; at the time of ~tit~h,se; ~ ' (a) nu>re thanr,,l;~°iu,cif the.,P<~iol 5 "t(itctl assets would he ingested in. the ~e~urtneti; i)t~ ~tny: c~>ne _itis[ier: " (h)' more' Chan 20,°,4. cif fhe 'P~x~l's tcital assets w;oulct t,ie invi'~tect i_n securities- issued <:ir giiat•anteel hy'the titate ,cif California;: (~i` , (c) mc~re.'than ~~/, of [he Pcxil=ti tcital:.assets wciild:ht im~e~t~tl~:'.in.securiue~ is~ued;cir~guacinteed F?y a,~e>'liticd :~ulacli~isicin ~if`the State of Gilifoi`ni'a. - - ~ • . - ... ' - . ~ PROCEL)UR)ES FOR PAR1'IGIPA'TING' IN 'I'1(-1(E, PROGRAM 1?artiepation:;in~.tfie,P.:rogram;regtiires~the f(~rti~:i ~appr~yal of`he ~overriing`Ixidy ~_~t each Piihl~ AKrn~.y°hy cirelir~mc~t;' ~r retiolutior as appropriate; I'uthc, Agencies should ~cros~ilt with `their legal e~ziintiei ;`regardinK the~reyuii•ed tort; c>t act(~,n (:eif_her oreinance or `res~ilution~)'and the firocedures for en~-ctment c°>r adoptior-. A m~'~del fcirm <~t'ordinar-ce/'resc~lutii'in ;iti attached to a--his Information. Statement as -Attachment A. No repre~entaticin is.`inade, as'to the: legal' sufficiency, c>t` the meidc l form.~for any given Puhlic.Agency. ~ - Once this aet:on has ,Been ta!ken, ~pr~~spective~i'"arttcipants (eir "the, appltcahle hon~l. tnrstee) must c<~mplete rn ~1~~<iunt~ Registration;.Form;(attached to~the Informatitm.Statement'as Attacl(nenG E3:;) and ;an apprcipriate signature card.if cl,teck~~riting _ _.:. is desired, and forward diem along with a certified ccipy`cf"the cirdinance or resolt.iti~>>n as~adcifiCeel'and an` erecut~cL;~~c.ipy of the Declaration of'Trust o:, ~ _ ~~ Californ~,a Arhitrage Management Pro;ram ~ ~ ~. ~ '. , . ~ ;275 Battery Street; tiucte :2140 ~ - San F.rancisc~„'GA 94,111 ' There is no limit to. the. nuniher of accounts that ran he_ openc,l by a I?aitiepant..Acldthcnal Ac~«~unt, Etegistrat;~>n F~ ~;ri»s are provided forahts purpose. `The'Investment Adviser .w;ill ncatify the Puhlic Agency of its, apprcaval cif, ttie,~-p(jl'ii:cl.i uva ), and the account-number(s) assigned.. The; Investment Adviser reserves ihe: r-ght't~~ reject, any application '1n its ;clip r~ i~ic >n. Instructions on the Account ~Reg> tration.Forms~will° remain 'in etfert'~intil, the'Investment -Adviser receives ~tirit`t~•c~. r.~c:~ti-• fixation to change~them..Any. changes to addresses, account registratic2ns; or names c~r•sigrtatures of autti~i~izecl, <>tM~ ia,l,~_,'c~~r - _ , .other cr-iti¢al inforrnatiom will,.i'equ~reappiopriate documentati~~n. InStiiccti~iis or form5~may he-~htairied by .~:cllin,~ tl)t` . :Investment Adviser 'at the:. toll;'free number (1:-800-729-7665'!), A ' -HOW `TO, INVEST Before funds are iiavested'under tei~rris;of'the Program, `Patttcpants should contact the Investment Adviser tea c:;hi:r>> ;~js~arc~- , - .... , priate accounts and ;must; complete ,an' Account Regi tradon Form, for each account, in the form attached .ati Aftr~.l ~ ia,i~ is t :13. The InvestirientAdviser will request. a schedule of"expected withdrawals which will be, useia in, managing ins c~~t ~, u~,uf,~ to. " .~ help :assui=e adequateoverall liquidity..` Participants are generally required t"o deposit bond proceeds ii;ith the~:Custodian ,ny wire. tr~insfer..A Federal Kt~~~ n ~~ I tank. ' p . ` .. ,_ ... ^_ an. Individual Portfolio,~immediately upon rece ht ~ ~a~ 'the wire . etmits the .investment of funds in Shares in, the Pools or in . _ ' Gustodtan. It is strongly recommended; that the entire amount of bond- .proceeds' be ingested in CiZis mariner on, il~~~ ~I:~v t~ 8 .. -.. . .. ~ ~ ~ _~. ~- - r ~.C :.~ L 'I' F' O R N I, A, A R B: I T R .A G E Vii' A, N A G ,E .:tile -E .N. T P R O G <~R :~ ~I ti,tirtit received hy. the ;l?articip~rnt Te .establish a clear audit tail sufficient tc~r rebate calculations for all investment earnings. T<r nuke an investment. 'a Participant Hurst f<~llc~w both of the f~~l~~n~~ing. steps: ' ;Step ,1. Call Che Investment Adviser Ci-R00-729-766>> and :give the follo~~ing' information: 'Participant's areount name o Arliount being wired • Participant', ~rccciu_nt number _ ' ~ Type <~f wire.-Federal 'Reserve or hank ~ ' ® Name cif hank sending wire Step ?. Instnrct your hank to wire funds (°Federal 'Reserve wire if 'possible) to: _ ' Fi'rst'Interstale Bank ~ ` ' 1200 West 7th Street Los Angeles, CA 90017 ~ • AI3A #122000213 ' Further Credit tci California Arbitrage Management Program Account~368-H=Q1~45 4 ~: Impoirtant-Participants must:call `the Investment.Adyiser before 9OO.a;m.,.Paci>ac time,. and a:Federal Reserve wire ar bank wire convertible to. federal Elands on a same-day basis _must;be~received that-.day by the Custodian if'fhe'investment is to begin earning income that day. The Trusr does not: charge a :fee for receipt of `these w-res. However, a Participant's bank may charge a fee for « firing fund;. . .. ~ _ I'artie_ipants may request an exception to tHis wire `transfer procedure from tle_ InvestmenC Adviser, but exceptions rc>rld result in delays in investing ;funds 'under he 1?rogram, ..and for rebate, calculation .purposes may limit the Rebate Ca{cu lac ii ~n .- Agent's anility~to track the investment of all bond proceeds. hrough a single account from the time of actual settlemerit'~ ~n the bond issue. The Inves[menr Adviser can provde.::instructions on how to invest by check. Checks will be deposited «Fic•n -eceved hy,the Custodian and proceeds wil_I' be invested when they areconverted to federal funds. This procedure in:r~~ ake ta~~:or more business days.., ~~ ~ . 'The Investment Adviser will process nvestmerits.only on the days thar'fhe Custodian:is.open foe business '(a ~~13o~inc~~: ":day`'): The investment Adviser reserves .fhe rigli't to reject ariy .investment in the Program and to Iimii the sire ~ ~E :r l?anticipant s: account.. ~ - ' The Program may ac~ept•,funds~which"have previously been deposited or ingested outside of the Program, suhit•~t ~~~~:: .the'preparation of a Rebate Calculation Repoit: The Irivestinent Adviser~w~ill pro~•ide instructions and assistance in,arr.rnkin~; f~~r preparation of this :report. , • .. , Unless<all funds,froaaas particular bond_issue arc invested.in the Program innmediately upon;receipt by the .: ° Participants and~unless the recomaxended witt~r3ravval: procedures are followed,, the Rebate Calculation Agent m:ay ~~require"additional.inf®rnnation from-'the Parficipane, may not be able to complete.a~Itebate Gaflculation Repc~ri, or may have to qualify the Rebate°Calculatiton Report.. ~ . ~.~ C A L I F' ~O R ,N I A A' R B I T R ,A G E -;11~ A N' A. G E M E N T P R O G R ~-~: `> i HOW 'TO' WITHDRAW - A P trttcpant may withdraw hrnds~-'from any of:ts .Pool acec~iunts at any time- to pay-t<~r the~rtastti of j~r~>je~~ts hy: ~~;ritin~' a check payahle:tei a [hire! party or rriitiating a requisrtic•~ri;t~~r a w'i•e transfer. ln,either• case,~:tihares in the,~rppr~>pri Itr f'c><~C ` will he redeeme%l in ~tlie ~imoiir5t' of the wi[hdrawal ac, the net asset value prr tihare neYt.detemii'ned'after rtc~eipt <-?r a request ' for withdrawal - ~ , • BY Check. Checks are. the rec<anunended niethc~d of w rth~lrawing funds, since. they prcrvrde .a ~lcaY <<<u~lt trail of the eYPenduure of'hond pr~xeeds~and.funds remain invested in the ~rpprc>priate Porf until the check is,"pres~ntccl to (h Custodian fpr payment. Upon cegire~t, the,`(nvestment Adyrtier will. provide each I?~irtici`pariC' tit; each ('cxil ar-dcpunt with a ~. . yup(ly'of cheeks imprinted with [tie ;Participant's name ~rncl account nitmhar. - " Checks may he;maile ;payable to' anyone and depc~siteel. by tlre, p iyee is any other check When tht~r c h~c.ls rre~ pre- rented to the, Custodian fc~r payment„ the Custodian will cause-the; Trust to redeem the happi•~:iprate' nunifk r of :Rill c >r feiu- nonal Shares ft~m .the Participant s acc~unG with the apprc~pnate Pool ai_i cover the amount, of the check: Wti'en ~~ ntin~; .<< check, (or checks) totaling more Phan X500,000 a Participant should notify the [nves[menr. Awiser by tele(h~me (1-t~(x1-7?~)- 7660. to assist the :Investment-;Adviser in schediilirig investment maturities. ~ ~ - = ; Hinds will continue to earn daily income .until the 'c'heck c°lears. (f'there are nc~t tiufficient 5hareti in thr- 1'crr(i~~i'j~rnt account"to_ cover. [tie cheek, it`will, he returned unpaid to the hank at which it .was° presented for payment;. , - - .. Cancelled checks which have kieen paid'hy the Trust'will` he returned tc~ the Participant: .: By Wire= Transfer. Partici ants' ma call t re uis P~ - ~y he Investment Adviseror any I3iisiness,:I~ay at: (1 1300-729-7660 ti:i initiit~ ,i . q ition for wire transfer of funds " If the telephone call 'i received prior tc~ 900 am , Pacahc time funds will. he «ircd , to the: Participant's designated a~coun"t that.. same day. Requests received after 9 00 a,.m_, will heprocessed c>n the ne:xr --, Business Day Funds wil to the bank =accounts e i `remain invested in; the Pools until. the clay "they are wired. Funds may he transferred hy•« ~re• ~,>ral,~r p, cified in,the,:P,artieipant's Aecoun[:Registr~tic~n Fcirrrr.'Ghanges~t<~'fhe ~I'articipant's spec;iliccl ,a;,rrik account most be'received i_n writing before°they, can he effective. ~ - If is recommended that cheek"s payable to the`P,:articiparit.and' wire 'transfers ,to.'the Participant's: aecctunt be; utied rrnl.v to reimburse the `Participant .for project costs ;already;mcurred', and that; appropriate; docuirieritation c~~f such rermf~urs~~tnt , he, retained by the Participant.to maintain a clear audit trail of -the expenditure. of funds for rota"te calcu~l'ati<m purp~ Esc sty.. ; °, Failure to .follow this"procedure could result in additiona_l;rehate calculation costs and/or ssuance.of a qualified ft~'lrite, ; ' Calculation Report.~or Rebate. _Exceptoris ,Compliance Report. In, the ease of wre,trarisfers„ such ~transferti' will, fie, (i~ iclr :f.c ~r . , purposes other thane reimbursement only in exceptional circumstances:, approved by' the I_rivestmerit Adviser. Reba¢e°ra~+~'~*~ons Upo>n.WithdrawaL'If,, at the tune-bonds are issued a Participant elects to make rehatey h r~ nr~•~1is,, the Investment Adviser will tracks withdrawals' and `avi1F notify. the I?arttoipant when;. curnulatrye withil'-awals;'from. an ,r~ ~- {°;~rnr . ,_ ' =total: the amount of :original bond: proceeds deposited, in, that accc,>ant Within five days ~f, such: nofiee_ the.Inves[irerit ~~I~ itic~r' will provide an estimate of the:Fartici`pant's.rebate_oblgation, if'any, with respect"to [Fie account;+and the Partici~a inr ~+:i.iv~: then .withdraw u" to :one=half of. the. excess .of. the a ' . .: P - _ - .mount; remaining in,the account over tie estimated ceha~e araic>irrit -• :, U on receiving the above-described notification, the; Partr~ ipant ;P .: ~ sh,guld! promptly request preparation of: ;i fl<~hue Calculation Report. by the RebatetCalct-lation,Agerit: Ttus may he .done: by,,coniaeting the, Investment Adviser by cel~laf<,n~ ~: (1.-g00-729=7665): _ ,. ~ , Upon-completion of the Rebate Calculation Report;.the Rehate~CalculationAgent wtll provide the,Part~ciparc rrref if'~e Investment Adviser'with ebpies; of the Report, and'the• Investment Adviserwill. deposit'the'rebate amount :ident~te~l ~n rite' Report in-a separate Participant rebate accoiint.:The.;Participant will he able ;to withdraw the balance, as !orig. a thc° <~ nth drawal i .made within -Ci0 days gf the Report date. ~ -- ,# 10 ~ - . . .. _ .. ,. .a . ~ ~ ~, - -- ~ .. ' ~._: .. ~-r J. tr. :C :A; L I F O R Ni I A A R, B I T R A G E FYI A N A G E ttil E N T P R O G R .-~ ~ l A Participant could he liable for rehate; payments in addition to the amount ictentil'ied in the Report if; among other things, the date. cif `t_he Repoit dcies not c~trespc~nd with an Installment- Cotrtputation Date (as' defined in the applicable U.S. Treasury regulations), if payment-of the amount is not made within 60 days of the installment Computation Date, or if some future :action by the Participant efia!nges the .,yield of the related to-x-exe_ mpt ~hligations: The Tn+sr'reserveti cer[a'-n amounts from withdrawal, requires: completion ~of rebate estimates and a Rebate C:.tlrulation I~cpon; and requ+re5' wtthdrawals~ within, a-certain. time frame as described above in order to track all earnings accurately and to :atisist the I'articr tnt;in fulfilling its rehate obligation. Participants may request an exception from these n_+les, but p~ finch an exception may result ih the Patttctpant having to fulfill its rehate: obligation. from. other,~sources of funds, and may make it impossible for the RehaCe'Caleulatton Agent to prepare an unqualified Rebate Calculation Report. Withdrawal Only to l~feet Project Qosts. Participants are req~iested nit to withdraw funds from the Pool for the pur- pose c-~f re investing them, at a higher yiejd.~ Failure to follow this procedure could mean that the Rebate Cal'cuiation Agent will he, unable to; issue an unqualified Rebate Calcul'atgn Report. Emergencies: Right to„Suspend Withdrawals. The'Declaration of Trust permits the Trustees: to suspend the right of withdrawal, from a Pool or to postponer the date of payment of redemption proceeds if the New York .Stock Exchange is closed other than for~cusfomary weekend and holiday closings, if trading on that Exchange• is restricted; or if, in the opinion of ahe Trustees,..an. emergency exists such"that disposal of a Pool's securities:~or determination of iIS riet asset value is not :reasonably. practicable: [f the :right of withdrawal 'is tiuspeniled, 'a Participant may: either withdraw its request for, withdrawal or receive payment based on the net asset value of the Pool next deterrriined~, after termination:' of the suspension. met` Redemption Policies: The Trust may :redeem Shares owned by a'.Particpant to reimburse the; Pool for any failure by that Participant to make full payment for Shares .purchased by the Participant; Redemption payments may he made in whole or in part in securities or other property of'the Pool Participants receiving any such securities o~ other property cm 'redemption will incur any costs of sale: GENERAL POI:ICIES CONCERNING ARBTI'RAGE RIEBATE To further the objective `of providing.. Participants with simplified arbitrage:rebate compliance, the Trust -has adopted ,+ recommended set of practices. The Trust strongly recommends that they be followed to minimize the Participants rehate: compliance costs. The procedures include:the following, (I') Participants'should:nvest all Mond proceeds subject to arbitrage rehate in the Program on the same day as they- are received by the Participant. This will enable the Program to track the investment. and expenditure of these Funcis. (2) A Participant should identify all bond proceeds subject to the same bond .y,.ield at the time of'initial investment.: separate.account should be established foreach fund or group: of funds havng,.a, different Mond yield,. by complt r ~ns~ _.. an Account Registration. Form. The InvesCrnent ,Adviserand' Rebate Calculation. Agent will, provide advice on the num- ber and type of accounts that will. be needed to provide a clear audit trail. q (3> Federal tax .law :re urres issuers of tax-exempt otlig_ ations either to make certain rebate. payments to the Federal ~;c ~~ - ernment or to meet certain expenditure :guidelines; If the Participant expects ao meet one of'the .expenditure rxc cp- ~ions, it should notify the-InvestmenCAdviser when making: its iniiial._inves[ment'so the Investment Adviser`can pry ~- vide information'regarding the expenditure of bond:~proceeds. ('4) If the Participant expects to make rebate. payments;, it should .note that; Federal tax law requires issuers of tax-exeaiE~t obligations to meet certain rebate payment requirements at .least every five years. However, Participants may nreel to account for their rebate liability on an, annual basis: Tle, Investment Adviser will provide estimates 'of rehate amounts at any time for a Participant, and'"the Rebate Calculation Agent will provide a Rebate Calculation Rep<>rt. • 1 1 C A L I F_ O R iv I •A A R B' I T •R ~ A G, E" - ~; M A Iv .A G E M E .~~ T P R O G R' r1 Vii. more;frequently`than-every,five;"years if rege-ested. There w-ll'he a ~ej~arate'charge fc~r each~~lZepocc. (.tiee `l:xperise~ of the. Pr~~gram:"), ~: .. .. .. (~) If"the Participant is eligible and'has elected,to pa,y a,penalty''in lir~'c~iF n~:.-k-nK Rehate ~aynentti, -t:~houl~d nr~tify~fhe' • `Investment Aw,iser when making, its initial investment. - ' . CG) It is recommended. that .Participants ~ncx draw- down the enures lxind" prci<eedti acccnint h'efore `prc•rviding'Rir ~-ny rebate requirement or penalty payment. ~ - ~ -. . REBA'PE.EXCEPTION SEItV,ICES '~ - , - ' . Ulion.infial investment PartiZ-pantti'shciiild inf<~rmthe'Investment Advis~ir':if theyrxpect,te~ qual-ty h_i~:in e:rpendit-re ' exception to the Federal rebate requireiients, or if'th~.y hake elected tci pay a penalty_ in ,lieu of relaa[e; Th-rty. ~iayti heti-r•e - ~ . ..: , y expenditure. test date •contained in_ the Internal'. Revenue Code car .regulatioons wh-~h -ti•,related fc•~ an ex~ep'ticin. "troni the rehate•requirements,•the Investment Adviser will,^prcwide,a notice;tc:~-each s~i~h Partieip.~nCt;hat traeks`the~eunuilati~e..per- centage :of`hond. proceeds drawn fmm, h-nds :invested in Elie Progra'in f~c,~rn ~my himd issue• who,e• prcxeedti are then,;inveht- .. . . ed in.;the Program: and-compares: the cumulative percentage of ftin~h drawn t<i the reyiiremeniti; c>f any exception u,mt~rineZl in the Internal Revenue Code or regulations. to assists the Participant in determin-ng •its~eligibil-ty Fein such.."exception. Th'irt~y . _. days after any expenditure .test date, the Investment Adv-Ser=will ;provide a. report (a: 'Rehate Exeepficins Cc<>niplianee .Itep<irr' ) to such Paiticipant`showing~the~cumulative percentage 'of bond proceeds (inclilirig investment inc~>me) actually dr.--.n anZl .,, _. . . calculating;'the'penalty,'if any, due to rthe Internal Revenue Servic•t if actual amounts drawn, dca nct meet•'the cxpe,niliti"re. ..test.. ~ , ~- ItEBt~'I'E~C"AI:CiTLATIUN SERVICES ~ - The Rebate,Calculation Agent avill provide each Particpane: w.ho sir requests with a repcirt~ and ei~inion (thy ~Kea;~ate Calculation;Report") for any given: Report Period that summa_r`izes caieulations :~f:` The allowable investment •yteld; - f ~ " .. ,.. ® - All Program investment ;activities for the ''Report Period; and ` A calculation of the ~re_bate liability'at the end of the: Rep_<~t E'erod using "the methcxlolcigy prescribed' hy, e'he :rli~l'i- cable. Treasury" regulations. ~ " . _ ; When an account= is opened, the Investment Adviser ~anil Rebate Calculation Agent will, request certain infe>rinatu ~n~ krc~m - a ,Pa_rticipant; including information necessary' to,permit scheduling: ~f ttie Rebate Calculation Report or Rehate_ Erc ~ h~;'ics~riti Compliance-Report.. The Rebate Calculation.Agent will regu'ire.certain additional information.from a",Participanr, in~I~iolitlg, copies of the official statement, non=arbitrage or tax" certificate, hc'ind~re5olution.and similar~ocuments, lief~re the tic>~ ~:eich ' ., :~ Rebate. Calculation Report or Rebate Exceptions :Compliance Report can be prepared. ~• - Normally; the `Rebate 'Calculation Report will be eompletcd :iris fucriished ao the, Participant for„- each bond istiue r~~ 1 I:i-er than 30 days after'the; Installment Computation 1?ate provided .ihat the Participant has authorized its. preparation.. i~~l jrt.i_ vided the necessary information to the Rebate Calculation AKe"nf..buta "Participant. may request that a'.Rehate'(:.il~i°rl.-i~is>n R'eporr be completed. of shorter intetvalss , ~ - The Investment Adyiserwill provide Interimrebate calculatiim estintates :upon request. to enable Participants c ~ ~~-~c ~i ri:-te rebate liabilities~'for financial: repoRing purposes. ~ ~ - To open an :account for~bonds with proceeds:,that have lxe;n ~nvesied:outside of the Program; ahe Investment ~\,~I~ ~:,r- will,ieguirea Rebate Calculation Report from the date~of bond; issuance to the date .of investment;in the Program I ~~~~•.to the uncertainties, of elapsed time since the issuance~of'the honCh, types`of investments, volurrie and "type of tr.-n..~l ci~.lns; ~,~ .number of ~funds,,condition,and avai abrhty of"records, "the Rehate Caleulatiori Agent`eannot estimate,a,generalize~~l t~~c• 1oi- 12 - i~ . ~ :.C A L I~ .F O IZ,~..V I„ A A R B ~I T 'R A G E 1VI A~ N A G E M .E . N T P R O 'G R :~ :~I' tktis fist Itehate Ca'Iculatic-zn Report: _Howe~~er. at the request of-the. Participant, the Rebate Ca{cuCatiori Agent will prc~•ide an-estimated ccist fc•~r:firep:ring this Reh:.ite Caleulat<~n Report hase~i can the Participant's 5perficcircumstances. . ~ ~ , OTHER:SERVICES TO PAdtTICIPAN'd'S Stateiments Confirm ttic~ris of .each investment and. each withdrawal of funds will` he mailed to .Participants within- ~-~~ dais of the tr ' ~msactiori. At month, encl. ~a. statement,of .each, account. will t~e.;matled to each Participant which .will show the divrdend- tern - • vested a;nd the acco~mt balance as of the statement date, T,he statement -will also show total inceime earned sin« the ;inception c~'f the account. Any checks the Participant has,wruten against .a Tnist account which .have been laid. by the Trust and cancelled during-the month will 6e; included n,a separate statement. ' :Information Services. Toll free telephgne Service (1-800 729 7665-) r5 available ao Publc• Agency officials to c~htain inf~_~r- rn~ition, including current. :yield, up-to-date account information -and a ~transaetion history, and'~to receive instnietions for-the 'invesuiaent:c~f bond firoceeds or withdrawaLof funds. , Technical Assistance. Technical and'opeiational assistance rs a~ailahle through the same toll free: number to Public 'Agency officials whiff ae considering the Program for investment purposes: Estinnated ;Earnin .and _, 'ecte~ I)iaws. U ' q ~ _ p arcs of future earn- gs Pro' pon re nest, the Investment Adviser will iovide estim ings for Participants; haled on the projecte""d drawdown schedule pro~~ided by the Participant. The°Investment Adviser may cequesG estimates ~f project drawdown schedules ~Erorn Participants from time: to time to facilitate efficient investment of Pool ,funds. - .. DAILY INCOARE Aim DIVIDENDS'OF 'I'IIE POOIS At 9:00 a.m. `Pacific time.each•Bu"sines Day; the net~income: of each Pool isdeterrnined grid deelared:as a dividend to ;Participants cif record as of the- close of~busness•on that day:, Shares purchased as of 9:00 a.m. begin earning dividends on the date of purchase. Shares redeemed asp of 9:00 a~.m. each day ~do ncx, earn dividends for that day: Earnings for Saturdays. Sitidays and holidays are declared on the next.Business;Day. Dividends~declaied are paid' monthly on the last~l3usinesti lay of each month, and arere=invested in each account fjy purchase of'adiitional Shares of the .appropriate Pool. For the: purpose of-ea{culating dividends, net;ncorne•of a Pool ec~nsists of interest earned plus or. minus. any discounts •,e>r• premiums ratably amortized. to the, date of maturi and all realized gains and losses on the sale ofsecurfies prior to manr= ~riry, less all accrued expenses' of the Pool; including the fees payable ro the. Investment Adviser, Custodian; and others ~t h~.,, nrcwide services to the Pool (See "Expense"s of'.the Program.") ` ' .The investments made by the Pools are in short-term instruments. The Pools may attempt ao maximize yields, through ding to take advantage of short=term market.vanations..These,holiricti may result.;in high .portfolio .turnover. Ho~te-~~<r. . tce the cost of transactions of the'type in which~~the Pools :engage is small, a high urnover rate is not expected to ~rtfrrt . _rtecially'income or. net asset value: ~~ ' VAI.>IJATION OF POOL SHARES -The .net asset value ~f Shares.of each Pool rs,~determined.by. the [n~~estment Adviser.as of:9:OO.a:m.. Pacific time on ~•:r.~h Business Day. The net.asset value per,,Share of~each Pool is computed hy,dividing [he total value of the~seeurities and c>th~~r assets of the Pool; less. any labrlities,aby the total outstanding Shares ~>f the Pool'. Liabilities include :all accrued expt•n:~ ,. and fees of the Pool, including fees of~the -Investment Adviser, Custodian and others who provide services to the Pool ~ti h i. !, are accrued daily. (See "Expenses~of the Program:") }- . For the purpose of calculating,the:net asset value per Share for ea~'h_Pool,;rivestmen[s held by the Pool shall be ~aliic•d at ~~st, plus or minus any amortized. discount or premium.. As a result, thy. price-at which Shares are sold'or redeemed ~~,!I ~~ t .~ . „" ` .. ,C A. " L :I F: O R N .L ~ ,,~~ R B I • ~T R` ~~ G. , E M A ~ A ,G E : `~1~1 . E ~ T P• R, O' G ,R ~ :~~,{ .~, not reflect unrealized gains or h~sseti yin portfolio ~ecurrtes. ;•~ ~ ~ • 'The Poolti°seek'Ic maintain ~i:net asset-~alie of X1:00 pe.,r'tihare-,.lx-r thert can•he nr~.atisur~nctahat the„~ntt ~~>~t ~~alr~'' will not. ~ a fcorn ~,1 QUO. The In~~esunent Adviser ~tne4 the Tntstees, will eriodicall, monitor as tht deer}~ a ro ti:ue and . ~' ry, ` . . , , .. p ,. y Y'~ . pp F~.. at such intervals ati are reatic•>nahle m l ght:c-~t.~urrent iYlarket u>ndtuc~~ns, the relattontihtp httwc:c.n.ti~e: ~ul~c>cttaecLccnt.~:tlue ~.r ~h~ire tnd.a net atiset va _ pe pc icattonti rst market valrie The. marker v clut,`h ttiiti nct tsset. t~~tlue per share in the-t cx~l lue r"Share: h~tsed ~i~ • an ,awailahle rnd ' ti~may;he affected~hy general changes-'in interest rites rewltmg m ia~r~. ises o~"de~rc.~ises in the - Value of securities,held hy'fhe-Rc`xh. The;market`valefe of ui~tsecur'itte5 will vary mvei'stly tci:changes in."{irevulmg interest' rates. Thus, if interest rateti-~nse after a. sec urtty ti {~e[rchasei_l sueh~~i, security iF`sc_~Id,, night• he sold :at a..pricc, less thin its cost. S'iintlacl.y, if' interest .rates deeltne, tiiac`h ;~ee_urity, 'it' sold„ rni~ht he ~<>Id at ~t {~ri,ce• ~;re~tter than 'its, cc_~sr. '[t ~i ecurity `iti , field to matunty, no less c~rgatn"is normally realzed.as a result c~t:;t_hetic, "{~ri~~e tliic+ruaeic~~ns. Wifhdraw~tlti;l~y I?~titic-{~~ints ci>iilcl, 'require the gale of portfoli~~ securifes~,~rior tca maturity,,. [n, tlc event thrU the differc.n~e hctwf:en ,tle.=am~xCirecL post vale ' 'per Share and the market valae basis net asset vahte, exceeds 1/2. c>E" 1 {percent the. InYestntent Advitiet'.~n'd ate Tristc.c.~ ~ti lJ • , consider what,.. f any, corrective action„sh~uld` t~e•taken to minimize any.inatenal elilution or.c~tler unfair results wliirh might' _ ... ' arise from differences' between the,two. Th>_ti action may tnclucte. the reducti~~n x~f the;;numf~er c~F otitstart'ding aharea hy, ha - • .1 ing~ each Partcipant.'prop~itionately confrihute Shares••tc~ the Porttcili~ ti ralii_tal; suspension ezr' [escCssi<m ,oP div,ielench. ~lt~:- , laratio_n of a special capital' distrihution,.sales of portfoltc~ seruritieti, prier to naati~ity ti~> reduce the averaKe:;matir•ity cir tri realize capital gains or.losses, ~r;i•.edempttons',cah Stares;`in kind, If the. neiniher <,af'e~utsta'ndinK ~hareti tti 'reduced in •c +r~ler to maintains constant net-. asset "value cif-:$;1.00 per Share,'invt.~tcirs wtll ci~ntrihrte prc~pc~ttionately to the Rriol s ~a{~it~il"the riumber,of'Shares "wlich represent the i1ifference hietween he~ani~~irtized cost valuation and market valuatirm oF;the, G'~~ctl. - Each I'art•icpant will he• deemed tci: have agreed .[o .5ueh contribution hy'tts~ nvestmenC in; ttie 1?i~iL " To minimize the ~possihle; ad,,vei'se affects of changes in interest rate, and ,to help. main[ain a stahl'e .net asset .valae;~ ~ot ti l :r'N), " _ .. -. - per-Stiaie; each P,cxl will,maintan;a dcillar weighted averagepontol~ matirity•~of'not mc»;ahan. 120.,elays, nca ['cx~l ~~,ill [~~ir• . chase• any security with a remaining matunty of'm~re [hart one. year; and the Pcx~ls will curly invest ~in> securities deter~iiiia~•cl . hy, the Inve"stment Advi er•and ChesTrus[ees to. he.of High quality with .miriimaL.erei_lit.ntik, ., . -~ '` ~7i'~ID INF09thiA'I'ION , ' The "current annualized ytelei"' of ~a Pool.. may; from time. to time;. he quoted iri ,reports;; literture aril aclve-tttic.n~~;nt.~ ,;~~~`i l;i= . lshed',by the Tn-st. Cunen[;annualized yield``is•c~mputed't%y averaging the daily :dividend declared;hy the,'I''cx~l during it,~~• - 'prior seven .calendar'.day .period', dni-ang. by the, average daily net asset. value per Share: (~nocma.lly ,$1:00;) over i ~~• ,.++a,~~. • period, and multiplying the result, by 365`:. ~ , ~, ~ ~' ~ , . •. . 1fie yields quoted should not be considered; a •representation of the .yield of the Pool: in tte future; ,since; she y ic•t~ ~~ ~:~~. ~~' Mixed:. Actual yields will depend.on the type,~'quality, yield, and maturities bf. securities .held hyahe Pcol, changes in ine~~rc~~t ,. rates, market condifons~and other factors.. ~ • . INDIV>~BJAL PORTFOLIOS ~ ' The..Investment: Adviser offers, Participants the"option of investing a porton,of their proceeds in~one or more, t~:~.•~~ ;,:~<<.: investments outside: of the~Pools;'These Individual :Portfolios wtll.te managed by the ,`Investment, Actvtser' ipcan +re+ < , .~ _;, ~C' specific tnstruettonsfrom,the{ Partictpant.and will be; coordinated wtth a Partiapant s~ Pool account. In order tar•e•.~..+.~~i+ :h an ;Individual' _Portfoliq,.:a, Participant. must: Have an account'in ,a Pool,: Each Individual Portfolio will ~be liekh 6y she ~:~: ~~• , ; ~:+n . - ~ - - ir1 a, separate,.account°in [he Participant's name: Earnngs•and proceeds from the matunty:or~sale of;any°nvestni~•nt ~,+ sn Individual Portfoiio~ will `be deposited automatically into :a Participant's pre-designated ,Pool' account: Individual' `Portfolios are designed'to::complement in~e"stmenrin a Pool, by providing a fixed rate' of in, serest can' :i• 1` ~n+, ,n of bond proceeds. They may ~be appropriate. for Participants ~witl. relatively lengthy project drawdowri'schedule- ~ ~ ~r r~.~,i-' ' L4 . ;f . ~~ A •L, I F 'O: R N I` A, A' R, ''-B. i T R r1, G E• !41 A N A G E, M, E N T 'P R O G. R .-~ \I Iarticipants that wish to niatch:ex petted. e~nstr~ coon draw;5. rn~te-closely with investment maturities. to fix earnings on some ;car all of their funds. Jndn ic.Fual Porctolios may,also he appropriate for the investment of deb't~service resecve,!funds and ter- " , ' ain firnias subject tc,r investl~entyield restrictions. The ;Investment Adviser cvtill assist each Participant" in evaluating.'the pc~s- ihle use-.tit' an Individual I'~rtf~lio Fora further information,: call the toll=free' number (1-800-7.29-766>): All costs ;associated w'.th any Individual 'P~r[folo .will be charged` separately to each Participant.. ('See, "Expenses of the INYESTA~ENT ADVISER AND t1DA~IIIVISTRATOR l'uhlic `Financial Management, Inc,;'an investment advisory firm wit.Fi an office at 27> Battery Street, San. Francisco, California 94.111 is the Program's Investment Adyjser. The daily management of the: investment affairs and research relating ~;tci the !?cx~ls .find"Individual I?cmffolips are'condueted by or underthe supervision of the:. Investment Adviser: The'Investment• Adviser ;is registered as an' investment adviser under the Investment advisers Act of 1940, and the California Corporate tie~urites Law: The :Investment Adviser `i currently :acting as financial adviser and/or investment adviser to.rnore than.300 ... , ~~ities, tcwntihips, boroughs',. eciuntes; school districts and authorities in. 30 states;, providing its clients with financial, invest- naent advisory, and cash management services:. As of September 1, 1990, the:'Investment Adviser had approximately S4 billion 'in funds under management. The. Investment Adviser's also investment manager for the Cornmonwealth'of Virginia State N~in-Arbitrage Program grid the. Pennsylvania Local•.Government Investriient "Crust ArbitrageRebate °Management Program, Ixitli state wide programs• that provide investment management, accounting; and arbitrage rebate calculation services. similar tc~ the California •Arbitrage Management Program. .The, investment A.dviser;is an independently-operated, wholly.=owned affiliate of Marine Midland Bank, N:A:, which is ,part of the Hongkong Bank,group,,'ari":international bankirig~group. Adviisory`Sergitces. The Investment Adviser.manages the investment of..the assets of-the Pools, including-the pfacectirnt -~f ciders for the purchase and sale of ~iriyestments, pursuant Co an investment advisory .agreement. with the Trust c the "Advisory Agreement"). The:Advisory Agreement' will remain in effect until, janua ;ry° 15, 1.993. The,Advisory Agreement n~av be terminated at any time,.by the; Trustees upon not less than 30 days; or more than. 60 days wrirtten notice and may.ncu I,c. assigned by the Investment Adviser wirhout~zhe~eonsent of the. Trustees .and Participants with Individual,Pottfolios.:~ftrr Janaary 15, 1991, the investment Adviser°may germinate the Advisory' Agreement upon 60 days written notice} to the Tn~a. The Ad~isory,Agreernent may also. be terminated as go any Individual Portfolio upon' not; less than. 30 days written nc ~i ~~ ~• by the appropriate Participant to the Investment;Adviser. The. Investment Adviser obtains and evaluates such informat+~.n nd advice relating to the economy and the~sectrities markets as ii considers.neeessary or useful to manage contirn,c ~u~lv ie assets of the Trust and the Individual Portfolios .im a manner consistent w-ith:-the Program's investment objectivr~ .+nd ~olicies• - Invesc~eint Tiraiisons; The, Inve tment •Adviser:is responsible-`for decisions to. biiy acid sell securities.'for.the I'rc;~,;r:+in "nel arranges for the. execution of seeurity`transactions on•behalf of"the"Program. Purchases of securities are made frc,~ ~h~-,~1- yrs.. underwriters: ands issuers; sales~prior`CO maturity are"made to dealers and other persons.• Moriey market instn;~r~~~t~i. hough[ from dealers are generallyaraded on a "net'' basis, with dealers acting; as principal for heir own accounts ~~~ri;~~ •+,r a stated commission, althou~tt: the,price of the. instrument usually includes,<'a profit to the dealer: Thus; the Program :!t ~: -• not normall incur an brokera a commission ex include a fixed amount of tom nsation'to the' ~~,on such transactions. Securities purchased in underwritten c~ttrr',r~. pe _ - nderwriter, generally referred to as the underwriter's commission ~ ~ r , :, :count. When securities are,;purchased. or sold'. directly from or to ~an.~issuer; no commissions or discounts are paid. The policy of the ;P.rogram, regarding pureha`ses .and sales 'of securit~es':s that primary consideration will. Fie gig ~•.i ~, obtaining ;the most .favorable 'price:~and efficient :execution of .transactions: In-seeking to implement this' "policy„ 'the Invest ; ~ i~ ~r,r Adviser will .effect transactions with: those dealers whom "[tie: investment Adviser'believes provide the•most favorable i~•r'~ ~; G A L I' ,F O R N I' ' A A R °B': `~h T :R- A •G E" M ~A N A G E ~~ E'. N; 'T P R O G ;R' A >`d "` ,. ,- - - _ , and efficient .e-Yec~itic~m. [f •the, Investment Ach~isei hel_ieves sac=h price ;und• eseciiti~>n c.in he chtainecL from Hair[ tli ln.c=itit' • _.. dealer; it may ~gt~e ~c~mcderati<<~n t<~ placing ~c=xttol,ici transactu;ntiwith ttcsc.. de~tle,rs w'lo -Itii> tur,nish .re~eurch•:un~l e ~th~~r services to the' Program such tierti•ices n~iy include, but ace ncat limited .t~~, ;cny one c>r nu~re <~F the f~,il~~,~~•ing. ~int~>r:m.uie,n- ;cs to [tie availahtlity,c~t tiec~cr~Ues~fi~r purchase ~~r ,ale; statistical orf~icncal inti>r~iiatie>n car c~pinicins pert~itnfng C~~ cn~e~tmtnt~; ~iire':tie,rvcces; and appcatsals,c.~r ev.ileiatitms.<if partfc~Sfii~~a~curities~.'The.services r't~ei~ed by f~he.Investment Ad~~itier.fri>~~: dealers may he c~~f henefit'tt~i it in;tiie iiiana~;emen`t,cif acccitints'hh;`some e;r. ,-II c~iF;cts <<iChLrcl'ients•,ind m;t.,y ni;r'in all c;tse• henefitthe Program dtrcctly. While utch:5er~;iees,are useful and'in~r~,>rtant in sup~lementing~`ts owri;:'Ccse~treh anei'a~t~itities,° ~' the Imestnlen[ Adviser laelie~es the: value ~~t,uiclr services cs~nc;t de.Cecininahh ~ind' dcx~s: not signihcantl,y reduce its~tx.pcnses.. - The Pri~gram does °net reduce' the; management 'tee. paid .to [lie, Investment ;Adviser h,y any anuiunt: that may he ~itrihurihle. to the value of such services. ~ ~ ~ ~ • The •Investment-`Advi:~er also '~,rovides the,fcillowing,aelainitirrative srr~ccea'ici the'Prc~grim iri ;icu~;rd'anC•e kith ih~ ' Advisory Agreement:: Gustomer:Servlce. Opera[ion. of a [till=free ~telephcme facility to he. useia' exclusively, hy' Participants ~~i• by 1'clilic .Ai;c neic:~ . , -.,interested in hecoming Participanr5 in 'the Tncst::. ~ ~ _ ~ . - Administration.;and`14I_arketin~ _Matntenance ~f`the: hczokti and records cif the P~~x~ls tnc lading Partietpant ;ceeocint ' records; supeivtston under- the eneral~ directton ~~t the Trustees _ ~ _ , g . _ eat all .idminititratCve atipects•of"cperati~~nti„ pericxlic apdiitn~; . . and preparation of atae Infcirmaton Statement; ;pre;paratton .cif tax returns; financial statements and, reports fcar the Pc3;c~l~.: _ _ supervision and coordtnaton.of the aetivities;~f the. Custodian; determination cif dividends and'.net:assef "vale of'i_lie I'cxil~ti in accoi`dance with the policies.of:,the Trust anhthe prcivisie~n cf,c~~Ffice space, eyuipment;;and=,persc~mnel tc~,ailmini~tcr tlie~ ,Trust.. The,In~estment,Adviser also arranges and pays for'co,ts cif printing, and,distnt~iiting the,tnfe~rmaticn ~~tatement t~:; Public Agencies, pi`epares;and:dstributes other•.explanafory and~ritcimi~ticinal matenals;,"prcwides technical atisistin~c <~n~cl guidance to Public Agencies •consdering; use of the Program ,as, an•in"vestment vehicle, and its perscannel make ~ itiity tee Pi if }I c~ ; Agencies to present [he facts ahout'the Program and,. to, explain. its use, advantages and hone"fits. : . • .. .. . PaRilcipant.Act®unt`Iteports. Preparation and provision to Participants of confirmation of each;Partte~pant, in~;c•an~~•,it~ and redemption transactiorr, and of°monthly' and annual Statements, Summarizing, transactions;; earnings and,atisec: c ~l c;,c~ l'i!., Participant account':andprovision of statement's of transactcns and earnings u~ ahe Rebate Calculation .Agent. ~ • . j. .CUSTODIAN, , "'First Interstate ,Bank, San: Francisco,, California, is Custodian fc~r•°the :Programr The Custodian: holds; all', cash ;and ~~~~ ~ ~ t i ~~ of"the.Pools,and:the''Individual'Portfolios:and also:acts;as check clearing"and disbursing-ageiit for the..Pools:"The: Lcc~t~.K,Iia'r~ does :riot paitcipate in determining the:inyestment policies of fhe.,Program or tninvestment decisions: The Prc->};r':iiit ~,.._~~ ' _invest in [tie Custodian's obligations•and may buy or sell securities through [tie Custodian; ',. ', .. - ~ `'~ ' ~ RiI~A~'E'CAE:CLJLATION AGENJC - Orrick, Hemngtgn.'8c Sutcliffe°;provides rebate calculation. services to Participants -n fhe :Erogram. These yen<i< <•~. ,;~ ~• designed to as"sist. Public .Agencies; iii complying with the arbitrage mtate :requii•ements';of the `Iniecnal Revenue c:~-x l~ :~ ~;,;1 , •• 'related ridings;, regulations; and ;procedures:'The; Rebate Calculation Agent-will rely on'infortnation provided. by;the P'an~. •~~~.~~;it related to each bond,issue and .account: information: ~ompiled,by the Investment' Adviser.:. . • " ~ . i ,,. . ~, ._-~~. G; :A L, I F O R. Iv' I A A R B. I T R A °;G E. M, A 1V A G E M E N T P R O G R :~ :~i Fees fc~r all reFi.~te e~lculat~n services will :he billed to the Partcpant.'(See °" Expenses of the P, rogi•a_m::") The Rehate Calculation Agent :reserves the right to decline an engagement with; respect •ta any bond issue, and the agreement with the Kehate -Calculation Agent may.; he. terrr-inated at' any time by the Tn~sf or the `Rebate Calcul`tion Agent upon. 30 days written AUDITOR The financial statements.of-the Pools will be.,audited. annually by Price. Waterhouse, X57 Califomia Street, San :Francisco, California 94104. The fiscal year for the Pools ends December 31. ` '. :' COUNSEL • Orrick, Heriington_t~ Sutcliffe, 400.Sansome'Sti•eet, Sari Francisco, California 94:1.11; is Counsel to ihe'TiUSt: ' EXPEiVSFS .OF T~ PR~RA11 The Trust' has entered into arrangements ;for the_ •Pools 'for investment management, custodial:; legal;, accounting,- audit, and rekrate calc-iilation services. `The Trust. also ,pays for. grganizatignal expense`s, insurance premiums, Trustees' and officers' expenses, and other expenses: not expressfy~ assumed .by he Investment Adviser. .. - •. For the. services prodded to; the Pools by •the Inyestment,Adviser the;'Investment Adviser is paid a monthly fee based c>n the following percentages of. the average daily net assets of ;each of the Pools:: . Average ;Daily Net. Assets Annual ,Rate ' . First $200 million .........: •:..... 0:17% • . ~ Next $200 rntllign .. .... . ......:.:, :. 0...15% Next _$200 million........ '.....:.. ". 0..,13% Over $600. million ........~ , , .: • .. •..: 0.12% :The `Investment Adviser may, ft`orm time: to tune,: waive some, or all of its.; fees but is under no obligation to do so. such. waiver will have the effect. of ;increasing the yield of the appropriate Pool during. the period the fees are waived. , .All expenses related„to operation of .each;Pool ate pad~from the income of the appropriate Pool (see "Daily Iricome and nividends"); and :the Investment •Adviser has a ,, greed to, reimburse each. Pool for the amount.by.°which the total ezprntie: ~.if the Pool;'including inyestment;managemerit custod~al._legal, accounting and•aud_it "services;. exceed 0.25%°of its arinualir~til. iverage daily ner assets for ~the• first 12 months:. ~ ~ - ' For services provided for Individual Ponfolios~by the`Invertment.Adviser,each,,.Participant will be billed:•a fee, in monthh •nstallments, based on the following.percentages;of the average daily nec assets of each Individual''Portfolio: Ae~er.e~+e :' Net As.~ts Annu~lRate First $25 •mllioa ................ ....... 0...10% Cover $25-million .. ..... ,.. .0.08%0 • Addtional,fees are charged for custodial;'legal rebate'caliulation:and' other services for'an IndividualPortfolio. A s<hcY1- ;~le of custodial`fees is available on:request. C A, L[ F `O R' :iv I .A A R .B.. I T R A G:. E ~ ~' °°~ _ M A. N' -~~_ ,G , E ~ !~l E ,ti T P R, O (:, R, ~ = ~ [ The fee of the Rebate Caleulatic~n- AKent will f~e;'billed to the ['artteipant~~it thc, fcllow~ng r itess ` . ' ~ ~ ~ O"ne-time. :tier-uIi fee per Fond ~tiiie: ` :. ,,..., :.$. ~~0 ' ' .. I I2e- hate Calculati<in. Report, e p r bond issue:..... ~`~ 1,>~0 There will ,he additional char es fog reftindtn s~ re uirin g g~ q : g alli->cauons of tramt~rred pc5~cetd5~, ;tor E?ehate; Cale ul~uion Repc~~rts.tnv:~ilving }pond proceeds rnvested outside the Prc3gr,~rn, and tor'other`calurlattonti involving more exten~r~e I'egal. services. .. :. TAX'.MA'I'I'gRS - I'urutant to Section 1,1(1) of the_:Internal Revenue, Gc~de, federal gross .income does nc~t 'include ,incE>inc ° ~leri~ eci fr'c~ri,~. ' the exercrse of an essential ovecnrnental function that acerueti tci a Mate or an olrtreal sulxlrvrsican of a ti Y_ - g.- - ' ~ Y p . ' fate. In the cipin-. a not `..t. tax' ~>n rJf Counsel to the T~r~t, the~Tntst r~,Trttst n~zr ~ ~ ' ' able entit-y and the.rncome <~~t the I?artrcipantti t:ti. not included in fecl~~c:rl rocs income Ace~idin 1 norther the. the I artictpants~ will he requrred t~~ hle federal rnccm~e fax~~r~turns ~~,th . respect to [he rncome~ ~f the Tres"t: or derive~t from, the Trust by the: Participants., The Interrial_ Revenue~'Code .generally requires rssuers :caf tax-exempt ~:~hligatic-~ns tci ;rebate there- arhitcage prcrtit~ derv ed from. investment 'of gross proceeds rn nonpurpose~obligations to the federal government. Van~,rirs ex~eptic~ns trim thc. r~hat~: ' ~ requirements are available; and each, Participant-should consult with their~hond ec-~unsel Ito determine whether and tc r :~~-hat extent appropriate- exceptions might he' available. fiThe rn"ve:~tment° fey ['artici'~ants,c-~f gross° proceeds of h~~nd :i'ssuex rn tl.~t non ur ose ohlr ati~n and will he to TmThe rUni e an investment, in a p _ p g ~ ken tnto~ account -n .determining any' re,hate ,Ir il~ilit~., . __ fed States Treasury Department has not yet issued regulatrc~ns ,relating ao the: treatment uflthe inyetitmeni <it.tx;~nd: proceeds in.enatres~"s_uch as the Trust..However the pi=eam.hle to Tein "ra ancf'I'rc 5eii'Re ulaficros n>mtil~ ated cm ~'tay Ix? ry :. Imo. g p g 1~, 1989, provides hat,an: issuer, that invests Mond, proceeds: in a widely-held;mutuaf;funil'can calculate reh~u ihle,.trfaitr,is~e based upon ahe arnounts.oF the `mutual. fund redemptions spent fi">r °governrnental pur~h~~es. The ~prearrihle -turthee ~nclr~~t~~ ' ~: that future regulations will provide specific rules regarding the treatment .of h.rnds~ organized. h-y states tp, enhance `inv~•~t n ~~ nt opportunities; of local governments and states and that in a ro rate cases thestates and fecal cwernments;in~eain~ in ', Pp .p a g such .funds will be allowed to take rntq account Drily the, dividends actually paid iii computing rebate amt)unt"s:11th~ ~u,~h the,preamble:is not brndrrig it'indtcatesihatao_ long,as the: Trust.ts widelyheld.arid is.ofherwise,operated like a' nii>nc~ ~ri,tr- ket fund, the Participants should tie allowed to treat, their.: Shares ;as nonpurpgse .investments and will not: he rt~~lu+rrei t~~ look to the underlying investments of the, Trust. Iri..addrtion; alie )7reamble indicates that any expenses ~f the; Tntst p,t id pi-i~ >r J ' to distributing: dividends on the;Shares will- not be coated. as if received hy~ the Participants. ~ `~ No~;i-uling-~wi11 be sought Erom the Internal, Revenue Serv--ice regarding he ~establrshment:oc operation of the "rrt~a.. I~l.ic conclusions,. reactied''in this ,discussion .are ~noG binding, ,upgn `the Internal Revenue Service: or the courts anii `there i:~ n<,, ;t„u r- an~ethat contrary pgsrtions; might not be asserted, by the Internal,'Revenue,~Seevice, Successful: assertion"of a conirar- h~ ,.iri~,n might, result in increased ,rebate liability. The Trust will rriai'ntain adequate :records to :redetermine any cehate liaf~r[i't~ ~~~ ; he event, the Internal Revenue Service require"s a redetermination. ' ~ ' -. . _ The:, yield: on the: Shares will, fluctuate' daIly arid, accordingly Participants should consult with their ~toriil coumc I' ~ >r t ,r.rn; , cial ad'yiser as to~the appropriateness,of;investment'n Stares,or in:Inctiyidual.Poitfolios in?the event the pi-oc~r"~1 ~ ~,t Pfir;i'r ` , bond. issues. may. rrot,:be invested. at yields in excess of "the: iefds on their, bonds.: , ' Y~ ` DFSCRIPTI0IV OF DECLAIZATIOI±L OF `I`RiJST:.ANIDsS1fIARF.S . . , The Trust. is a.separate public agency .established as a common law trust: undei.the laws of the State 'of California: Pn- ~~~~, cution of a Declaratort:of Trust. by two California: Pu6lic.Agencies'as the initial Participants in the Trust.. Addition) I'cil:~l'i~ lg ~:. ski ~. f~'; A L .I F 'O ' R N I :A , A. R B I T. R A G E M A N A G E M- ,E N T P' R O' G R .~ :~,I ., ,-. - r - _ ~. _ - ... ~~enc.'ies rnay.'.tecc~me. Participants in ;the Trust by either enacting an ordinance or' passing a r"esolution'to adopt the 1)e~laratican ~?f Test and by signing a cc~nf~~med copy of the Declaration of Trust. ' :. '. Gi>pies of tte Deelarati~in of Trust. and :i3y-[;.tws. of` the Tnrrst' are rn~luded,~vti_~itl this- Information. Statement. All descriptions ., t ec>ntained in-this [nformaaon Statement ace sut~ect to the specific language of the Declaration of Trust and sy-Laces. The Declarati~m iiE Trust perrnits~the Tnrstees td issue an :unlimited nrmher ot`Shares of ~heneficial interest in the Trust. .The Triisteeti, in~;their discretion, may authorize the'diuision cit:Sha`res into rise oc more series. The Pools are currently the cinly series cif the Trust'. The arse"ts iif each Pciol, are "invested. in accordance' ~~~itt"`'the investment ohjeet`ives and j~<5licies of -that Pool., The :Shares of each Pool are only. payable from that portion of the TnisCs assets Held by the Trustees ~~~~ith respect. tc~ that Pi>ol ,Each Share represents'.an equal proportionate interest in the Pool with each. other outstanding Share c~f`that t'c-tol. 'Upc~m redeeming shares, a Participant receives th_e' current net asset value per Share of the Pool: If. liquidation of the Tnrst or '('Zx>I shcxrld occur, ;Participants will. tie entitled' to receive their proportionate share' of the assets° of the appropriate Pexrl,'as well, as their pr<<~portionate Share of`.ariy general assets 'of the Ttust;not attributable to any other series of the Trust. . The Shares of each Pcx~l are fully laid and non-assessahle; except° asset forth under `'Participant. and Trustee L'iability;'' and have no preemptive c>>r conversion rights. Shares are transferahle nn .the records. of'the Tn;tst only by .the" record. holder thereof or by its duly authorized agent,. upon delivery t~ the Investment. Adviser of a duly executed ;iriswment of .transfer„'together with such. evidence ,of the genuineness of each such execution acid authorizatton and of other matters as may reasonably, be required.. `Upon such delivery, the trans- ;fer will be recorrsed on the register of the Trust.. ~Un[il such record is .made, the. Participant of record 'will be deemed to he the holder of such Shares ;for all .purposes and neither the Tnistees".nor any~.transfer agent,. not any officer, employee; -~r Agent of the Trust shall he affected by any notice of the proposed transfer. Nq Shares may be transferred to atransferee other than a Pthlir Agency, or to the Trust itself. . _. For all matters requiring action by Participants, such .action. will he taken in, proportion to the .number of full and fractional ~~hares held by each Participant in the Pool"s of the Trust.. The Trust may he terminated by the vote of~a.majority'of its Trustees with the approval of the !holders of two-thirds of the Shares of the. Tnrst outstanding. Upon the, termination of the Trust, and after paying or adequately ,providing for the pa~- ment of all liahilities and upon `receipt of such releases; indemnities and refunding .agreements as they may deem necessary; fcir their pr~xection; the. Trustees may distribute he remaining Trust assets,, in cash 'or in kind or .,partly in cash .and, partl,v~ in 'kind, among the Participants according to their respective beriefieial interests: The:Declaration,of`T'nrsr may be. amended by .the vote. of the Trustees, with the approval. of a majority of the Shares ~>ut- anding:and the approval of a majorityofthe Shares of any series affected by such amendment. The Trustees may uL;o ` mend the Declaration of Trust without the approval of Participants to:change the name of the Trust or any series, to escrh- =., h additional series, to supply orriissions or coned ambiguous, defective or inconsistent provisions or, 'if they deers it nc~~ - sarv; t~ conform the Declaration of Trust to'tfie; requirements of or to elirriinate. or reduce any, taxes which may be paa <rhle ~~-Y the Trust or the Participants, but the Trustees will not't~e liahle for failing to do so. 'vo amendment,-may 6e made «hiclr~ would change any rights of any Shares by reducing the amount payable thereon upon liquidation of the Trust or- by, ditiin-. fishing or -eliminating any approval rights pertaining thereto, except with the vote of a majority of the. Trustees, ancf the approval of the holders of two-thirds oPthe Shares outstanding and of two=thirds of the Shares of any series affected by s~i~t~ .amendment:. - PAIt'I'dCIPt~N'd' AND TRUSTEE'LYABIITTY ~~ Under California law, Participants:'of acommon lacy trust° may be held personally liable for the obligations of the tn,~t ~~if`they ~are•:deenied to control the management of tte "trust. Because the Board .of'Tcustees has: ultimate control over all r>>ar- "tern relating 'to the Trust;, the Trust~does notbelieve thatPaiticipants would be deemed to have such control. Ttie Dectaran~ ~n l ~i .. r C A ~L I F .O R' N I, A -A R. B I T' R. A G E IvI A. N A ,G E ;Nl. E'. N T P :R O G ~R .~ :yt , of Trust ccntains' an expretiti disclairiier of iE?articipant ltahility f<~t••a~ts,~i>r ,ohfigationti: ~~f the, Tn~tit and'recliiires th tt n<;~ti~.e ~) Trustees. The Declaratiem' c ' agreement, cihligatii~n or intitni,ment entered into i>r e,xc.ciited .lzy the Tni~t i,r the _ _ ., .. _ ~ J t.y _ v suc i5c aimer he ~~ ~ TRitiC ~~ o provides that the TniSt ~~~ilG'indenin-ty each• ! anticipant a ainst; all cl'airiis and;lial.~ilities - ~ g cart cat the as5et5 cat the l?cx~l5, Thus, the rtsk cif a 'Paiticipant incurring personal 'liahility is~ limited tip urcun~stances in ~t;hich g; lion ( liahil_ity to E'arfici antsois remc ter ohli ationti, [n, view of "these ec~nsideratxms, the Tnist °laelieves'ttlat the r;tik ¢~it .per- „ >'~ ~ ~ .. .The Deelaratic~n of Tnitit pr<<w«les that n~ Tnistee otti~er,,em~li~yee or:age,nt cif'the Trust will, he liat,le fc>r ~rny .«ti<>n; ;~1 or'falure to ;act which does nc-~t. nvcil~;e had'Fatth, willful cnititeatian~e,,gross negltgerice~~c~r reckhtis;~lisre~ard.c>Feluty k;~ich, Tnistee officer employee: and aKent.caf ,the. Tnist will he indemntlied by the'Trist agains[ all .cla'inn and Iialailitieti =a.ti prop ideel in the By-LawS,and to the fullest extent prc~yidec] by Calitc)rnia'law: . _. T`he~ Calif->rnia~ Joint, Exercise, ~~f Powers Aet .provides Ghat all irtiit~unitieti~ frr>m 1-,ihility which apply to tht activity <-,F c,tfi> A encgents~ or, employees cif ParEiypants when'pertc>rming their functions -within ttie ,territorial aimiGti c~~f then respective. P~illi't~ g _ res will apply to them to ttie~ same' extent. while engalei :in ahe perti~rrnance of any ~oF' their Functicros tsscx~iuted ~rtf ' the'Trust, .. . . Under the Declarauon of Trust, the Trustees rriay.ohtarn ,rnu-rance or etitahlish self.=insurance Fiinds•u~ ebver ec.rtain;~lia,- hrlities This ;may 'he done on a jornt .hash with other srinilar entities, and the: Tnrst may et«~ntrihute more than itti prc? r,it~i share of such insurance premtums car self-insurance °funds: ~., . ,. , - ,. . _ ~ ~ ~ . 20 ~ _ ., r i G =,;~ • `L .I F O R~. [• „A A, R_ B; I T R, A G E :vI A N A G E. ~~I E N T P R "O' G R :~ ~ :` I ATTACHMEN`d' A. (ORDINANCE/RESOLUTION)'ti`O. . (Oltl~[NAiVCE/KESOLUTION) AUTHORIZING THE •°PUBLIC AGENCY" • TO JOIN WITH OTHER PUBLIC AGE°NCIES: ' AS.A~ PARTICIPANT OF THE CALIEOItNIf1 ARBITRAGE' .yIANAG:Eti1ENT TRUST AND TO INVEST'fiN SHARES OF THE TRUST .AND IN.INDIVIDUAL PORTFOLIOS WHEREAS, Section 6~02~ of Title -1, Division 7,; :Chapter'? of. the Government Code of the State of California l~the "Joint :xercise of Powers Act") provides that, if authorized. ;by their'.legislative or other governing bodies, two or more' public agen- :ies by agreement may jointly exercise any powercommon to the contracting parties; and WHEREAS, Under Section. 6500 of the Joint Exercise of Powers Act a."puhlc agenty" includes but i not limited to any .:alifcirnia .county, county hoard of education,, county superintendent of schools, city, city and county, public cgrporation, public district, cegic~nal transportation commission oc state department- or agency; and V~HEREA.S, pu.hlic agencies which constitute local agencies, as ,that term is defined in Section 53630 of Title 5, Division ', Part 1, Chapter 4,. Article. 2 oF,~the -Government Code of the State of California, are authorized pursuant to Section 53~3~ hereof to invest all money belonging to, or in the custody of, the local agency ,in. certain specified .investments; and Vr~HEREAS; the .California Arbitrage Management Trust (the "Trust") was established, pursuant o an_d in accordance ~~'ith he Joint Exercise of .Powers Act, by ~:a Declaration of Trust,, made as of December 15, 1989 (the "Declaration of Trust'`) by ,Monterey, Peninsala Water ,Management District arid. Placer County, as the initial Participants, as a: vehicle for public agencies ~> jointly .exercise (heir common power to invest; bond proceeds, and. to secure related `record keeping, custodial grid Federal ~~itrige iehate calculation services; .and WHF.RF.A$, pursuant. to and in accordance with. the Joint Exercise of Powers. Act; the Public Agency desires to join tht. ~r public agencies. which are. or will' be Participants of'the Trust by adopting and executing the Declaration of Tn~st. a is which has peen presented tathis meeting; and • WHEREAS, the Public Agency is a public agency as that term is defined in the Joint Exercise of Powers Act; and ,, WHEREAS,, there has been presented to this meeting an :Information Statement describing the Trust and the. Individual ''ortfolios to be managed by the Investment: Adviser to the,Trust (the.'~`Informat[on. Statement"); . . 'NOW, THE1tEFORE,..BE I'I"[ORDA~PIED%RESOLYEDJ by the [Governing Body] of~the :Public Agency as follows: Section ;l. ~ Public: Agency.. sh$IT join with' other public agencies pursuant to and iri accordance with the Joint Exercise ~ >t 'ciwers Act by executing; the; Declaration of'Tnist :and thereby becoming a Panicipanr in the Trust, which Declaration c ~,f Crust is hereby approved: and adopted: A copy of the Declaration of Trust shall 'be filed with, the minutes of the meeti n ~; u which !this [OrdinancelResolution] was [enacted/adopted].. The (Presiding Officer of`Goveming Body] is hereby authorized - cs execute, and the (Attesting Officer of Governing' Body,] is hereby authorized to attest and deliver, the. Declaration of Tn,a. n substantially the form presented at .this meeting. A-1 _ :.:' . ,, _,. C, A L I F 'O R Iv . I A A R B`' I T R: A G E M A ;N A G E' M E N T P R O G R' ~~ y1 Section ?.. The Puh(ie,.Ageney is,herehy~tuthorized tci ~E%urchase tih rtes in the Trust From time tc->;tune. ~~ith a~:~rilahle Ix,incl proceeds of the Pihlre Agency; ana. [o redeem tiome c,~~ a"Il of those shares frc)rn, time t<~ "time as sc~h r~xeech,~ire..<ne~dtcl for the. purposes'Eor w.hi~h such honks were issued: - ~ - :Sectron ~3. The Puhl.ic Agency is herehy authorized ,t~ ,invest a~arlahle hiand proceeds cF the 1'uhle A~;eney t~rorn time', to time rn,:one .or• more Individ~ial I'~~~rtt~ilios managed by the„ Investment Advrse_r ti-~ the Tnrst and ~leserihed in the' [nformat~n'Statement., . ., ,.. Secticin 4. The. apprc~~~irrate otficers, agents and emplc~yeeti cif Puhlic Agency [rc, ~htr-ehy authori7td ind chirerteci in the'` name aridon hehalt ot'I?ihlic Agency Ci7 take all actcans and to make anei e:xeet.ite any "vmdalf certificates; ceduitii[i~)ns: ~r~;ree ~' ntents notices ci>n5ents, warrants and other, documents, w,'hrch they;. cot any.i~f them, might deem,'ncce~tiary crr :~ippropri ut '! . in order to ~accc~inphsh. ~ttie purposes: c-if this [Ordinance/'Reticil'[itiian . _ _ ~J_ Sects This ,[Ordinance%Resoltifron] shall" take•~ efF~t .-t ,t-he carlietit.date permitted fy law. . k • .. ~;y;: _ -.(,!name:) • ~. r. • `~ ~ _,, ', ' - ~. ATTEST: ~ - ~ ~ . By,, . , .. ~ .. w _ .~• 3 ("name) _ ~ ~ ~ F ' . ,. T t - (tifle) ~; ' - ('date) • , ~ - • .. ~ ~ - ., ~ •, ~ .. . c ~~ - f A2 . ACCOUN'T' REGISTRATION `FORA'fi INSTRUCTIONS Please complete P,Irts I thrcxlgh [II oF.the'Account Regstration,Form, Schedule ,A, anti the Signature Authorization Card, :Ind return. them to ..the [nvesnnent Adviser. `If yau. have. any° questions c~)ncerning 'any part' of the .Account Registration Form, '~Ie:ase call the toll-free numher 1-I300-729-766 For assistance. PART'L 'REGISI'ItATdON NAME OF PUI3tIC AGENCY: 'MAILING ADDRESS: ~ ' CITY: _ . . , CA ZIP: ' T'I'E OF PUBLIC AGENCY:: , ' (COI:NTY, COUNTY IIOARD,OF F.DCCATIO\. COI \Tl SCPF.RINTENDE.NT OF SCHOOLS; CITY, CITY ANO COUCaTI'. REGIONAL TRANtiPORT'A710ti CO.~Utititil~~\. I'C fjLIC CORPORATION; PUBLIC DISTRICT; OTHER (NAhtEj) TAX ID NUMBER: 9 ACCOUNT TITLE: E)RIMARY CONTACT NAME: TITLE: .. . ' .['ELEPHONE NUMBER: . :FAX NUMBER: SECONDARX CONTACT NAME: . TITLE; ::~ ' TELEPHONE iVUMBER: B-1 ~„ ~. :' . `~ C, A L. I F O R iv, :I A A R B' I T R A G E• M A NAG E M E. 'iv. T P R O G' R; .~"~~ ~~L :PART II. WiTIFIDRr#WAL INSTRUCTIONS" • (Chcxise withdrawal by wire,;~or.c-heck, oc both'? ~ ~ . ( ): By "Wire:- The Programagrees.to honc~rall properly au[horized wire ~Crantiter7eyuests c>n fflt Business•.,CS~ry~iiiiiu~li.ately ti~llc>~~"in);~ the.. ~iafe, received. ~: At any time; you may change ('a) wiring imtn.tcuom (,h) .cCliorized rerresentative5 (c )' c~>the~~ irtc>'rni;rtic'~n. `Ir{c ~~t e~"t ~; y~r,~ agree that we may rely ~~n the infcxrnatic•n_ lirev(iu51y scj~rlird by ye~U until'we re~erve,.aUthc~irizc,el. wri'tt~n nc~tiFic.rtiiii ~e'"iY' any change on f~~rms EreSCrihed by tihe I?rogram.~ Changes will heecni~e eFfeetive, c~n [he 13iticnetis.I)ay'fE>Ilc>wins~ reeci(~t <;it: written. nouce•hy the [nyestment,Ad~iser. - The Investment Adviser is hereby as"thorized to aci uBon intitructii>ns received by telephcine by the aitlc>nz~•cl re~rc- Sentative(s) listed below to: hsve amounts withdrawn from tlacti a«ount with,the `I?rogram.and,w~red c-inly tc_> the F~cl~•ral Reserve member hank 'acazunt desgnafed.helow:; unless changed by written instructions to he Investment rtcl~ isrr `[t'..i: undei'sto~d that; the Program will he under no.ohltgation to I)oncir, ;in whole c•~r in dart, :iny [ransfe_r- reyueat ~~~liich (;a ( exceeds available funds with. the .Pr~•~gram,, Ch) "is~ prciviiled by any person: tither than~~the~ authcirized Iieruin~ d~ ~i'i~nactxl 'below, ('cJ ts. not in accordance with any' other. requirements Mated herein...: ' BANK NAME: ,. •. ABA, NUMBER: - ' ' `ACCOUNT ivAME: - , AGCOU,NT `NU,NIBER; BANK' ADDRESS: •. ( ) RY'"Check: • Completew~e enclosedSignatnire Autlaorizatioa Card;. and ®irdes chec&s by-.c9aoosiin"g ei~ner checrk ~.;-~•;kage • below: .. • - - (, )Small"checkbook.~(SO.checks) (' ~•~ Large eleckbook (30Q'checks;) " B-2 .. .. _. .,. ~- _,` I'Cihlir ,agency hereby atichorizes First Interstate Bank, San Francisco, California to honor checks drawn by itc~r can its ._.,~?ehalf cm the account of Californra Arhitrtge Management Titrst and t~ effect a redemption of'sufficient shares Cn the apprc>- (~riate•7`ni~t aeccxrnt Co cover=payment of such checks. Public Agency understandsahat: (1) this privilege may. he terminated at an tine fa the Trust car the Bank an~i neithe"r shall incur any„ iability-to it for Bono"ring such checks,. or for :effecting y. Y , reden}ptions,to pay such checks, ~r for returning;checks,which have not been accepted; (2) all checks drawn will require - 'the exact nurnher cif signatures as is indicated below; (3) no check shall be issued or honored,. or redem.ptiori effected, tirr any ~uncunts represented hy.shares, unless payment for such shares',has''been made in full and any checks given in,such __ payment have been collected through normal'"banking channels; (4) shares purchased hy-.eheok must be; recorded, on the Trusts fa<x>ks• ai' least 10 rbusiness days •hefore a; reetemption..can be effected; and (SJ this privilege is subject to all of the ,terms and conditions contained in the California Arbitrage Management -Program Information. Statement. - Prir~r notification, :tihoulil be given ,to:.the Trust by calling, the Investment Adviser at-the, toll-free numf7er for a check or -checks Totalling mere than $;j00;000. PART' III. CERTIFYCA'IITOM,AI~IID SIG1~1A'I'[JYtES' - . The undersigned .certify that:. - 0 the Ordinance/Resolution enclosed herewith; •authorizing Public Agency'to become a Participant in the California ~Achitcage Management Trust ts.tn.effect-. - ~J the Ordinance%Resolution has been previously submitted and his in .effect.. - The wndersigned certify that the amounts shown on Schedule A-Deposit Information represent the total original proceed, ~~f the 'related bonds.. - The. undersigned certify shat any (number) of;the persons signing below as auehorized-representatir~•s have ttie full. authority and: capacity to open an accounr•with'the Program, 'arid to invest funds in and withdraw funds ,frc mi the Program. The undersigned affirm t-hat Public: Agency has r"ecerved-arid read the Program's; Information "Statemeni..:rn~l agrees to he .hound fzy~its terms. The. undersigned- agree that .the certifications, .instructions, and authorizations costa inc•d rn this Account Re i'str ~~ ~ scion Form, will remarn in:effect until the Investrnent,Advi er receives written. notice of change. Authoezed Representatives `rvame• ~f Trustee or other- Fi~iucia if a . licable: ~ 1 ry, pp - -int Name Signature' Title -int Name - ~ Signature: _ Title ['nnt Name ~ _ -. ° - -Signature Additional signatures; if any,. may be added on a separate sheet. Title Name of :Public Agency: (SEAL) Finance .Official Date Secretary/Clerk ~ Date it ~ ~~ ~ i _ ~ 'I SCI~EDLJLE A-DEPOSIT INFORMt1TION ~ ~ ;I .. ~~ - I NAME _AND~`F.ULL, TITLE OF BOND ISSUE: ~ ' ` ~ J ' :DATE. I30ND ISSUE, SETT.I;ED:' ~ ~ ~ _ . PURPOSE OF I30ND ISSU'E:; ~ . ~ ~ ~ ~ - 1 ORIGINAL I'ROCEEDS_ OF THE <BONDS (_PAR, LESS ANY' G30N;I) AND UNOEKWRITING ` n[SCOUNT, PLLti Ati}' + PREMIUM' AND ACCRU~E~D INTEREST); $ `. .. 2. TOTAL,AMOUNT O`F;HO.NI~: PROCEEDS' AVAILA_I3LE FOR DEPOSIT: $ ~ ~ '~ '~ ;3: DIFFERENCE, BETWEEN 1. ANp 2~.; IF ANY;,~$ ~ ~ ~ ~ ~~ ~- .DIFFERENCE. RESULTS FROM (A) REIMBURSEMENT O,N CLOSING DATE FOR !?RIOR ADVANCES (Y%N) (,I;)'I'AYNIE~VT C)h~ CLOSING DATE OF' ,ACCUMULATED INVOICES THEN DUE. AND :PAYABLE (Y/N); ANI~/OK; , ' (C) ~C-THER (-EXPLAIN:), .. . . - . - ~ .u ACCOUNT;NAME; _ ACCOUNT.'.NUMBER: B-4 ::