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Hansen & Co. , bond underwriter ("Wulff, Hansen") of improvement <br />bonds ("the Bonds") in the principal amount of $4,900,000.00 <br /> <br /> to the Improvement Bond Act of 1915 ("the 1915 Act", <br /> 8500 and following, California Streets and Highways <br /> <br />pursuant <br />Sections <br />Code). <br /> <br /> C. <br />specifies a <br /> <br /> The offer to purchase the Bonds from Wulff, Hansen <br />special reserve fund for the Bonds in the amount of <br />$196,000, equal to four percent (4%) of the principal amount of <br />the Bonds. The willingness of the City to accept a special <br />reserve fund in this amount and to sell the Bonds to Wulff, <br />Hansen on these terms depends on the availability of <br />supplemental security, in addition to the special reserve fund, <br />in the form of a letter of credit ("the Letter of Credit") from <br />which to pay the principal of and interest on the Bonds if the <br />Owner or its successors are delinquent in the payment of <br />assessment instalments. <br /> <br /> D. The purpose of this agreement is to provide for <br />this Letter of Credit on terms acceptable to the parties. <br /> <br /> The parties therefore mutually agree as follows: <br /> <br /> AGREEMENT <br /> <br /> 1. The foregoing recitals are true. <br /> <br /> 2. As a condition precedent to delivery of the Bonds <br />by the City to Wulff, Hartsen (now scheduled for 11:00 Ao M. on <br />September 29, 1982), the Owner shall cause to be delivered to <br />the Finance Director-Treasurer of the City a Letter of Credit in <br />the face amount of $350,000.00, conforming to the terms of this <br />agreement and substantially in the form set forth in EXHIBIT A, <br /> <br />2 <br /> <br /> <br />