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HomeMy WebLinkAbout2017-04-11 - Resolution No. 17-11 RESOLUTION NO. 17-11 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT APPROVING, AUTHORIZING AND DIRECTING THE EXECUTION OF A JOINT EXERCISE OF POWERS AGREEMENT BY AND BETWEEN THE YORBA LINDA WATER DISTRICT AND THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY TO FORM THE YORBA LINDA WATER DISTRICT FINANCING AUTHORITY WHEREAS, the Yorba Linda Water District (the "District") is a county water district duly organized and existing under and pursuant to Division 12 of the California Water Code (Section 30000 et seq.); and WHEREAS, pursuant to the provisions of the Joint Exercise of Powers Act, comprising Articles 1, 2, 3 and 4 of Chapter 5 of Division 7 of Title 1 (commencing with section 6500) of the California Government Code (the "JPA Act"), a number of California cities, counties and special districts, entered into a joint exercise of powers agreement pursuant to which California Municipal Finance Authority ("CMFA") was organized (the "CMFA Agreement"); and WHEREAS, CMFA, upon authorization by its Board, acting pursuant to the JPA Act, may enter into a joint exercise of powers agreement with one or more other public agencies pursuant to which such contracting parties may jointly exercise any power common to them; and WHEREAS, CMFA and the District desire to create and establish the Yorba Linda Water District Financing Authority (the "Authority") pursuant to the JPA Act; and WHEREAS, the District also desires to become a member of the CMFA; and WHEREAS, there has been presented to this meeting a proposed form of Joint Exercise of Powers Agreement (the "Authority Agreement"), by and between CMFA and the District, which agreement creates and establishes the Authority; and WHEREAS, under California law and the Authority Agreement, the Authority will be a public entity separate and apart from the parties to the Authority Agreement and the debts, liabilities and obligations of the Authority will not be the debts, liabilities or obligations of CMFA or the District or any representative of the District serving on the governing body of the Authority. Resolution No. 17-11 Approving Execution of JPA Agreement 1 NOW, THEREFORE, the Board of Directors of the Yorba Linda Water District hereby finds, determines, declares and resolves as follows: SECTION 1. The foregoing recitals are true and correct. SECTION 2. The Authority Agreement is hereby approved in substantially in the form on file with the Secretary of the Board. Any member of the Board or the General Manager of the District (each, an "Authorized Signatory") is hereby authorized and directed, for and on behalf of the District, to execute and deliver the Authority Agreement, in substantially said form, with such changes and insertions therein and as such Authorized Signatory, with the advice of counsel to the District, may approve, such approval to be conclusively evidenced by the execution and delivery thereof. SECTION 3. Pursuant to Section 12 of the CMFA Agreement, CMFA will consider approving the District becoming a member of CMFA, effective upon receipt by CMFA of an executed counterpart of the CMFA Agreement, together with a copy of the resolution of the governing board of the District approving the CMFA Agreement and the execution and delivery thereof. SECTION 4. The Authorized Officers, the Secretary of the Board or any other proper officer of the District, acting singly, be and each of them hereby is authorized and directed to execute and deliver any and all documents and instruments and to do and cause to be done any and all acts and things necessary or proper for carrying out the transactions contemplated by the this resolution. In the event that the President and Vice President of the Board are unavailable to sign any of the agreements described herein, any other member of the Board may sign such agreement. SECTION 5. This resolution shall take effect immediately. PASSED AND ADOPTED this 11th day of April, 2017 by the following called vote: AYES: Directors Hall, Hawkins, Jones, Miller and Nederhood NOES: None ABSENT: None ABSTAIN: None J. Wayne Miller, Ph.D., President Yorba Linda Water District Resolution No. 17-11 Approving Execution of JPA Agreement 2 ATTEST: Marc Marcan onio, Board Secretary Yorba Linda Water District Reviewed as to form by General Counsel: Andrev/B. Gagenetsq. Kidman Law LLP Resolution No. 17-11 Approving Execution of JPA Agreement 3 JOINT EXERCISE OF POWERS AGREEMENT by and between YORBA LINDA WATER DISTRICT and CALIFORNIA MUNICIPAL FINANCE AUTHORITY creating the YORBA LINDA WATER DISTRICT FINANCING AUTHORITY April 11, 2017 TABLE OF CONTENTS Section 1. Definitions ........................................................................................................................... 1 Section 2. Purpose ............................................................................................................................... 2 Section 3. Term .................................................................................................................................... 2 Section 4. The Authority ....................................................................................................................... 2 Section 5. Powers ................................................................................................................................ 5 Section 6. Termination of Powers ........................................................................................................ 6 Section 7. Fiscal Year .......................................................................................................................... 6 Section 8. Disposition of Assets ........................................................................................................... 6 Section 9. Contributions and Advances ............................................................................................... 6 Section 10. Bonds .................................................................................................................................. 6 Section 11. Agreement not Exclusive .................................................................................................... 7 Section 12. Accounts and Reports ......................................................................................................... 7 Section 14. Conflict of Interest Code ..................................................................................................... 8 Section 15. Breach ................................................................................................................................. 8 Section 16. Notices ................................................................................................................................ 8 Section 17. Withdrawal .......................................................................................................................... 8 Section 18. Effectiveness ....................................................................................................................... 8 Section 19. Severability .......................................................................................................................... 8 Section 20. Successors; Assignment ..................................................................................................... 8 Section 21. Amendment of Agreement .................................................................................................. 8 Section 22. Form of Approvals ............................................................................................................... 8 Section 23. Waiver of Personal Liability ................................................................................................. 9 Section 24. Notices ................................................................................................................................ 9 Section 25. Section Headings ................................................................................................................ 9 Section 26. Miscellaneous ..................................................................................................................... 9 JOINT EXERCISE OF POWERS AGREEMENT THIS AGREEMENT, dated April 11, 2017, by and between the YORBA LINDA WATER DISTRICT, a county water district duly organized and existing under and by virtue of the laws of the State of California (the “Local Agency”), and CALIFORNIA MUNICIPAL FINANCE AUTHORITY, a joint exercise of powers authority organized and existing under and by virtue of the laws of the State of California (“CMFA”). DECLARATION OF PURPOSE A. Chapter 5 of Division 7 of Title 1 of the California Government Code (the “Act”) authorizes the Local Agency and CMFA to create a joint exercise of powers entity which has the power to exercise any powers common to the Local Agency and CMFA and to exercise additional powers granted to it under the Act. This Agreement creates such an agency, which shall be known as the Yorba Linda Water District Financing Authority (the “Authority”) for the purposes and to exercise the powers described herein. B. The Local Agency is authorized to buy, sell, lease and use property and to incur indebtedness for public purposes pursuant to the California Government Code and other laws of the State of California. C. CMFA is authorized to buy, sell and lease property and to issue bonds, expend bond proceeds, and borrow and loan money for any of its corporate purposes pursuant to the Act and a Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January 1, 2004, as amended, by and among the cities, counties, districts and other political subdivisions that are parties to that agreement. D. Article 4 of the Act (known as the “Marks-Roos Local Bond Pooling Act of 1985”) authorizes and empowers the Authority to issue bonds and to purchase bonds issued by, or to make loans to, the Local Agency or CMFA for financing public capital improvements, working capital, liability and other insurance needs, or projects whenever there are significant public benefits, as determined by the Local Agency or CMFA. The Marks-Roos Local Bond Pooling Act of 1985 further authorizes and empowers the Authority to sell bonds so issued or purchased to public or private purchasers at public or negotiated sale. TERMS OF AGREEMENT Section 1. Definitions. Unless the context otherwise requires, the terms defined in this Section 1 shall for all purposes of this Agreement have the meanings herein specified. “Act” shall mean Articles 1, 2 and 4 of Chapter 5 of Division 7 of Title 1 of the California Government Code, as amended. “Agreement” shall mean this Joint Exercise of Powers Agreement, as it may be amended from time to time, creating the Authority. “Authority” shall mean the Yorba Linda Water District Financing Authority created by this Agreement. “Board” or “Board of Directors” shall mean the governing board of the Authority. -2- “Bonds” shall mean bonds and any other evidence of indebtedness of the Authority authorized and issued pursuant to the Act. “CMFA” shall mean California Municipal Finance Authority, a joint exercise of powers authority, duly organized and existing under and by virtue of the laws of the State. “Indenture” shall mean each indenture, trust agreement or other such instrument pursuant to which Bonds are issued. “Local Agency” shall mean the Yorba Linda Water District, a county water district duly organized and existing under and by virtue of the laws of the State. “Member” or “Members” shall mean the Local Agency and/or CMFA, as appropriate. “State” shall mean the State of California. Section 2. Purpose. This Agreement is made pursuant to the Act for the purpose of assisting in the financing and refinancing of capital improvement projects of the Local Agency and to finance working capital for the Local Agency by exercising the powers referred to in this agreement and shall benefit no other entity. Any Bonds issued by the Authority shall be solely for projects benefiting the Local Agency. Section 3. Term. This Agreement shall become effective as of the date hereof and shall continue in full force and effect until terminated by a supplemental agreement of CMFA and the Local Agency; provided, however, that in no event shall this Agreement terminate while any Bonds or other obligations of the Authority remain outstanding under the terms of any indenture, trust agreement, contract, agreement, lease, sublease or other instrument pursuant to which such Bonds are issued or other obligations are incurred. Section 4. The Authority. (a) Creation of the Authority. There is hereby created pursuant to the Act an authority and public entity to be known as the “Yorba Linda Water District Financing Authority.” As provided in the Act, the Authority shall be a public entity separate from the Local Agency and CMFA. The debts, liabilities and obligations of the Authority shall not constitute debts, liabilities or obligations of the Local Agency or CMFA. Within 30 days after the effective date of this Agreement or any amendment hereto, the Authority will cause a notice of this Agreement or amendment to be prepared and filed with the office of the Secretary of State of the State in the manner set forth in sections 6503.5 of the Act. Such notice shall also be filed with the office of the Finance Director of the State. (b) Governing Board. The Authority shall be administered by the Board, which shall consist of the five members of the Board of Directors of the Local Agency. The term of office as a member of the Board shall terminate when such member of the Board shall cease to hold its respective office at the Local Agency, and the successor to such officer or director of the Local Agency shall become a member of the Board, upon assuming such office. Members of the Board shall not receive any compensation for serving as such, but shall be entitled to reimbursement for any expenses actually incurred in connection with serving as a -3- member if the Board shall determine that such expenses shall be reimbursed and there are unencumbered funds available for such purpose. (c) Meetings of Board. (1) Time and Place. The Board shall hold regular meetings concurrently with meetings of the Local Agency. The Board may suspend the holding of regular meetings so long as there is no need for Authority business. The Board may hold special meetings at any time and from time to time in accordance with law, provided that any action taken regarding the sale of Bonds shall occur by resolution placed on a noticed and posted meeting agenda for a regular meeting of the Authority. (2) Legal Notice. All regular and special meetings of the Board shall be called, noticed, held and conducted subject to the provisions of the Ralph M. Brown Act (Chapter 9 of Part 1 of Division 2 of Title 5 of the California Government Code), or any successor legislation hereafter enacted. (3) Minutes. The Secretary of the Authority shall cause minutes of all meetings of the Board to be kept and shall, as soon as practicable after each meeting, cause a copy of the minutes to be forwarded to each member of the Board and to the Local Agency and CMFA. (4) Quorum. A majority of the members of the Board shall constitute a quorum for the transaction of business, except that less than a quorum may adjourn meetings from time to time. (d) Officers; Duties; Bonds. (1) The officers of the Authority shall be the Chair, Vice Chair, Executive Director, Secretary and Treasurer. Such officers may be directors or officers of the Local Agency serving ex officio. (2) The Chair of the Authority shall be the Board member who is the President of the Board of Directors of the Local Agency. The term of office of the Chair shall be the same as the term of the President of the Board of Directors of the Local Agency. The Chair shall preside at all meetings of the Authority, and shall submit such information and recommendations to the Board as he or she may consider proper concerning the business, policies and affairs of the Authority. The Vice President of the Board of Directors of the Local Agency shall perform the duties of the Chair of the Authority in the absence or incapacity of the Chair of the Authority. (3) The Vice Chair shall be the Board member who is the Vice President of the Board of Directors of the Local Agency. The term of office of the Vice Chair shall be the same as the term of the Vice President of the Board of Directors of the Local Agency. The Vice Chair shall perform the duties of the Chair in the absence or incapacity of the Chair. In case of the resignation or death of the Chair, the Vice Chair shall perform such duties as are imposed on the Chair, until such time as a new Chair is selected or appointed. (4) The General Manager of the Local Agency is hereby designated as the Executive Director of the Authority and shall be responsible for execution and supervision of the affairs of the Authority. Except as otherwise authorized by resolution of the Board, the Executive Director or the Executive Director’s designee shall sign all contracts, deeds and other instruments executed by the Authority. In addition, subject to the applicable provisions of any -4- trust agreement, indenture or resolution providing for a trustee or other fiscal agent, the Executive Director is designated as the public officer or person who has charge of, handles, or has access to any property of the Authority, and shall file an official bond if so required by the Board and, as such, shall have the powers, duties and responsibilities specified in Section 6505.1 of the Act. (5) The Executive Secretary of the Local Agency is hereby designated as the Secretary of the Authority. The Secretary shall keep the records of the Authority, shall act as Secretary at the meetings of the Authority and record all votes, and shall keep a record of the proceedings of the Authority in a journal of proceedings to be kept for such purpose, and shall perform all duties incident to the office. (6) The Finance Manager of the Local Agency is hereby designated as the Treasurer of the Authority. The Treasurer of the Authority is designated as the public officer or person who has charge of, handles, or has access to any property of the Authority, and such officer shall file an official bond in the amount of $25,000 as required by Section 6505.1 of the Act; provided, that such bond shall not be required if the Authority does not possess or own property or funds with an aggregate value of greater than $500 (excluding amounts held by a trustee or other fiduciary in connection with any Bonds). The cost of the bond shall be paid by the Local Agency. (7) So long as required by Sections 6505 and 6505.5 of the Act, the Treasurer of the Authority shall prepare or cause to be prepared: (a) a special audit as required pursuant to Section 6505 of the Act every year during the term of this Agreement; and (b) a report in writing on the first day of July, October, January and April of each year to the Board, the Local Agency and CMFA, which report shall describe the amount of money held by the Treasurer of the Authority for the Board, the amount of receipts since the last such report, and the amount paid out since the last such report (which may exclude amounts held by a trustee or other fiduciary in connection with any Bonds to the extent that such trustee or other fiduciary provides regular reports covering such amounts). (8) The services of the officers shall be without compensation by the Authority. The Local Agency will provide such other administrative services as required by the Authority, and shall not receive economic remuneration from the Authority for the provision of such services. (9) The Board shall have the power to appoint such other officers and employees as it may deem necessary and to retain independent counsel, consultants and accountants. (10) All of the privileges and immunities from liability, exemptions from laws, ordinances and rules, all pension, relief, disability, worker’s compensation and other benefits which apply to the activities of officers, agents or employees of the Members when performing their respective functions within the territorial limits of their respective Member, shall apply to them to the same degree and extent while engaged in the performance of any of their functions and duties extraterritorially under the provisions of this Agreement. (11) None of the officers, agents or employees, if any, directly employed by the Authority shall be deemed, by reason of their employment by the Authority, to be employed by any Member or, by reason of their employment by the Authority, to be subject to any of the requirements of any Member. -5- (12) The Members hereby confirm their intent and agree that, as provided in Section 4(a) hereof and in the Act, the debts, liabilities and obligations of the Authority shall not constitute debts, liabilities or obligations of the Local Agency or CMFA, and they do not intend by the following sentence to impair this provision. Notwithstanding Section 4(a) hereof and the Act, the Local Agency and the Authority shall indemnify, defend and hold harmless CMFA and each of CMFA’s officers, directors, employees, attorneys and agents from and against any and all costs, expenses, losses, claims, damages and liabilities directly or indirectly arising out of or in connection with the activities of the Authority, including but not limited to any transaction or series of transactions undertaken by or for the benefit of the Local Agency. CMFA may elect to defend itself in any such action with counsel of its choice, the reasonable fees of such counsel to be paid by the Local Agency. The Authority and the Local Agency shall be jointly and severally liable for any indemnity obligation owed to CMFA or any other indemnified party under this paragraph. Notwithstanding the provisions of Section 895.6 of the Government Code of the State, the Local Agency shall not have any right to contribution from CMFA. This paragraph shall survive the termination of this Agreement. (13) In any event, the Authority or the Local Agency shall cause all records regarding the Authority’s formation, existence, operations, any Bonds issued by the Authority, obligations incurred by it and proceedings pertaining to its termination to be retained for at least six (6) years following termination of the Authority or final payment of any Bonds issued by the Authority, whichever is later. (14) Confirmation of officers shall be the first order of business at the first meeting of the Authority, regular or special, held in each calendar year. (15) No Board member, officer, agent or employee of the Authority, without prior specific or general authority by a vote of the Board, shall have any power or authority to bind the Authority by any contract, to pledge its credit, or to render it liable for any purpose in any amount. Section 5. Powers. The Authority shall have any and all powers which are common powers of the Local Agency and CMFA, and the powers separately conferred by law upon the Authority. All such powers, whether common to the Members or separately conferred by law upon the Authority, are specified as powers of the Authority, except any such powers which are specifically prohibited to the Authority by applicable law. The Authority’s exercise of its powers is subject to the restrictions upon the manner of exercising the powers of the Local Agency. The Authority is hereby authorized, in its own name, to do all acts necessary or convenient for the exercise of its powers, including, but not limited to, any or all of the following: to sue and be sued; to make and enter into contracts; to employ agents, consultants, attorneys, accountants, and employees; to acquire, hold or dispose of property, whether real or personal, tangible or intangible, wherever located; to issue Bonds or otherwise incur debts, liabilities or obligations to the extent authorized by the Act or any other applicable provision of law and to pledge any property or revenues or the rights thereto as security for such Bonds and other indebtedness. Notwithstanding the foregoing, the Authority shall have any additional powers conferred under the Act or under applicable law, insofar as such additional powers may be necessary to accomplish the purposes set forth in Section 2 hereof. -6- Section 6. Termination of Powers. The Authority shall continue to exercise the powers herein conferred upon it until the termination of this Agreement in accordance with Section 3 hereof. Section 7. Fiscal Year. Unless and until changed by resolution of the Board, the fiscal year of the Authority shall be the period from July 1 of each year to and including the following June 30, except for the first fiscal year, which shall be the period from the date of this Agreement to June 30, 2017. Section 8. Disposition of Assets. Upon termination of this Agreement pursuant to Section 3 hereof, any surplus money in possession of the Authority or on deposit in any fund or account of the Authority shall be returned in proportion to any contributions made as required by Section 6512 of the Act. The Board is vested with all powers of the Authority for the purpose of concluding and dissolving the business affairs of the Authority. After rescission or termination of this Agreement pursuant to Section 3 hereof, all property of the Authority, both real and personal, shall be distributed to the Local Agency, subject to Section 9 hereof. Section 9. Contributions and Advances. Contributions or advances of public funds and of personnel, equipment or property may be made to the Authority by the Local Agency and CMFA for any of the purposes of this Agreement. Payment of public funds may be made to defray the cost of any such contribution. Any such advance made in respect of a revenue- producing facility shall be made subject to repayment, and shall be repaid, in the manner agreed upon by the Local Agency or CMFA, as the case may be, and the Authority at the time of making such advance as provided by Section 6512.1 of the Act. It is mutually understood and agreed that neither the Local Agency nor CMFA has any obligation to make advances or contributions to the Authority to provide for the costs and expenses of administration of the Authority, even though either may do so. The Local Agency or CMFA may allow the use of personnel, equipment or property in lieu of other contributions or advances to the Authority. Section 10. Bonds. (a) Authority to Issue Bonds. When authorized by the Act or other applicable provisions of law and by resolution of the Board, the Authority may issue Bonds for the purpose of raising funds for the exercise of any of its powers or to otherwise carry out its purposes under this Agreement. Said Bonds shall have such terms and conditions as are authorized by the Board. Notwithstanding the foregoing, the Authority shall not incur any form of indebtedness for the repayment of money borrowed, including (but not limited to) bonds, debentures, notes, loans, leases, installment purchase agreements or other securities, without the prior written approval of CMFA, which approval shall not be unreasonably withheld or delayed; provided, however, that the Authority shall pay to CMFA: (i) upon the incurrence of such indebtedness, a closing fee in an amount equal to the issuance fee that a borrower would pay to CMFA for the same type of transaction issued by CMFA, in accordance with the CMFA fee schedule in effect on such date of incurrence; and (ii) annually in advance, on the date of incurrence of such indebtedness and on each anniversary thereof until the indebtedness is retired, an annual fee equal to the annual fee, if any, that a borrower would pay to CMFA for the same type of transaction issued by CMFA, in accordance with the CMFA fee schedule in effect on the date of such incurrence. (b) Bonds Limited Obligations. The Bonds, including the principal and any purchase price thereof, and the interest and premium, if any, thereon, shall be special obligations of the Authority payable solely from, and secured solely by, the revenues, funds and other assets pledged therefor under the applicable Indenture(s) and shall not constitute a charge against the -7- general credit of the Authority. The Bonds shall not be secured by a legal or equitable pledge of, or lien or charge upon or security interest in, any property of the Authority or any of its income or receipts except the property, income and receipts pledged therefor under the applicable Indenture(s). The Bonds shall not constitute a debt, liability or obligation of the State or any public agency thereof, including CMFA and the Local Agency, other than the special obligation of the Authority as described above. Neither the faith and credit nor the taxing power of the State or any public agency thereof, including CMFA and the Local Agency, shall be pledged to the payment of the principal or purchase price of, or the premium, if any, or interest on the Bonds nor shall the State or any public agency or instrumentality thereof, including CMFA and the Local Agency, in any manner be obligated to make any appropriation for such payment. The Authority shall have no taxing power. No covenant or agreement contained in any Bond or Indenture shall be deemed to be a covenant or agreement of any director, officer, agent or employee of the Authority, the Local Agency or CMFA, in his or her individual capacity, and no director or officer of the Authority executing a Bond shall be liable personally on such Bond or be subject to any personal liability or accountability by reason of the issuance of such Bond. Section 11. Agreement not Exclusive. This Agreement shall not be exclusive and shall not be deemed to amend or alter the terms of other agreements between the Local Agency and CMFA, except as the terms of this Agreement shall conflict therewith, in which case the terms of this Agreement shall prevail. Section 12. Accounts and Reports. All funds of the Authority shall be strictly accounted for in books of account and financial records maintained by the Authority, including a report of all receipts and disbursements. The Authority shall establish and maintain such funds and accounts as may be required by generally accepted accounting principles and by each Indenture for outstanding Bonds (to the extent such duties are not assigned to a trustee for owners of Bonds). The books and records of the Authority shall be open to inspection at all reasonable times by the Local Agency and CMFA and their representatives. The Authority shall require that each Indenture provide that the trustee appointed thereunder shall establish suitable funds, furnish financial reports and provide suitable accounting procedures to carry out the provisions of such Indenture. Said trustee may be given such duties in said Indenture as may be desirable to carry out the requirements of this Section 12. (a) Audits. The Treasurer of the Authority shall cause an independent audit to be made of the books of accounts and financial records of the Authority in compliance with the requirements of the Act. Any costs of the audit, including contracts with, or employment of, certified public accountants or public accountants in making an audit pursuant to this Section 12, shall be borne by the Authority and shall be a charge against any unencumbered funds of the Authority available for that purpose. (b) Audit Reports. The Treasurer of the Authority, as soon as practicable after the close of each Fiscal Year but in any event within the time necessary to comply with the requirements of the Act shall file a report of the audit performed pursuant to this Section 12(b) as required by the Act and shall send a copy of such report to public entities and persons in accordance with the requirements of the Act. -8- Section 13. Funds. Subject to the provisions of each Indenture for outstanding Bonds providing for a trustee to receive, have custody of and disburse funds which constitute Authority funds, the Treasurer of the Authority shall receive, have the custody of and disburse Authority funds pursuant to accounting procedures approved by the Board and shall make the disbursements required by this Agreement or otherwise necessary to carry out the provisions and purposes of this Agreement. Section 14. Conflict of Interest Code. The Authority shall, by resolution, adopt a Conflict of Interest Code to the extent required by law. Such Conflict of Interest Code may be the conflict of interest code of the Local Agency. Section 15. Breach. If default shall be made by the Local Agency or CMFA in any covenant contained in this Agreement, such default shall not excuse either the Local Agency or CMFA from fulfilling its obligations under this Agreement and the Local Agency and CMFA shall continue to be liable for the performance of all conditions herein contained. The Local Agency and CMFA hereby declare that this Agreement is entered into for the benefit of the Authority created hereby and the Local Agency and CMFA hereby grant to the Authority the right to enforce by whatever lawful means the Authority deems appropriate all of the obligations of each of the parties hereunder. Each and all of the remedies given to the Authority hereunder or by any law now or hereafter enacted are cumulative and the exercise of one right or remedy shall not impair the right of the Authority to any or all other remedies. Section 16. Notices. Notices and other communications hereunder to the parties shall be sufficient if delivered to the clerk or secretary of the governing body of each party. Section 17. Withdrawal. Neither CMFA nor the Local Agency may withdraw from this Agreement prior to the end of the term of this Agreement determined in accordance with Section 3. Section 18. Effectiveness. This Agreement shall become effective and be in full force and effect and a legal, valid and binding obligation of CMFA and the Local Agency when each party has executed a counterpart of this Agreement. Section 19. Severability. Should any part, term, or provision of this Agreement be decided by the courts to be illegal or in conflict with any law of the State, or otherwise be rendered unenforceable or ineffectual, the validity of the remaining parts, terms or provisions hereof shall not be affected thereby. Section 20. Successors; Assignment. This Agreement shall be binding upon and shall inure to the benefit of the successors of the parties hereto. Except to the extent expressly provided herein, neither party may assign any right or obligation hereunder without the consent of the other. Section 21. Amendment of Agreement. This Agreement may be amended by supplemental agreement executed by the Members at any time; provided, however, that this Agreement may be terminated only in accordance with Section 3 hereof and, provided further, that such supplemental agreement shall be subject to any restrictions contained in any Bonds or documents related to any Bonds to which the Authority is a party. Section 22. Form of Approvals. Whenever an approval is required in this Agreement, unless the context specifies otherwise, it shall be given, in the case of CMFA, by resolution duly -9- adopted by the board of directors of CMFA, and, in the case of the Local Agency, by resolution duly adopted by the Board of Directors of the Local Agency, and, in the case of the Authority, by resolution duly adopted by the Board. Whenever in this Agreement any consent or approval is required, the same shall not be unreasonably withheld. Section 23. Waiver of Personal Liability. No member, officer or employee of the Authority, the Local Agency or CMFA shall be individually or personally liable for any claims, losses, damages, costs, injury and liability of any kind, nature or description arising from the actions of the Authority or the actions undertaken pursuant to this Agreement, and the Local Agency shall defend such members, officers or employees against any such claims, losses, damages, costs, injury and liability. Without limiting the generality of the foregoing, no member, officer or employee of the Authority or of any Member shall be personally liable on any Bonds or be subject to any personal liability or accountability by reason of the issuance of Bonds pursuant to the Act and this Agreement. To the full extent permitted by law, the Board shall provide for indemnification by the Authority of any person who is or was a member of the Board, or an officer, employee or other agent of the Authority, and who was or is a party or is threatened to be made a party to a proceeding by reason of the fact that such person is or was such a member of the Board, or an officer, employee or other agent of the Authority, against expenses, judgments, fines, settlements and other amounts actually and reasonably incurred in connection with such proceeding, if such person acted in good faith and in the course and scope of his or her office, employment or agency. In the case of a criminal proceeding, the Board may provide for indemnification and defense of a member of the Board, or an officer, employee or other agent of the Authority to the extent permitted by law. Section 24. Notices. Notices to the Local Agency hereunder shall be sufficient if delivered to the Finance Manager of the Local Agency, and notices to CMFA hereunder shall be sufficient if delivered to the financial advisor of CMFA. Section 25. Section Headings. All section headings contained herein are for convenience of reference only and are not intended to define or limit the scope of any provision of this Agreement. Section 26. Miscellaneous. This Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. Where reference is made to duties to be performed for the Authority by a public official or employee, such duties may be performed by that person’s duly authorized deputy or assistant. Where reference is made to actions to be taken by CMFA or the Local Agency, such action may be exercised through the officers, staff or employees of CMFA or the Local Agency, as the case may be, in the manner provided by law. THIS AGREEMENT IS MADE IN THE STATE, UNDER THE CONSTITUTION AND LAWS OF THE STATE AND IS TO BE CONSTRUED AS A CONTRACT MADE AND TO BE PERFORMED IN THE STATE. This Agreement is the complete and exclusive statement of the agreement among the parties with respect to the subject matter hereof, which supersedes and merges all prior proposals, understandings, and other agreements, whether oral, written, or implied in conduct, between the parties relating to the subject matter of this Agreement.