SUBJECT:     Adoption of Resolution Authorizing Replacement of Lost Bond

 

 

RECOMMENDATION

 

Adoption of a resolution authorizing the replacement of the lost City of San Jose bond listed in the scheduled entitled “Request for Replacement of Lost Bond” dated May 17, 2001.

 

BACKGROUND

 

The owner of the previously issued City of San Jose Improvement District #83-176sj (Senter Road-Wool Creek Drive) has lost one (1) bond certificate and has requested replacement.  U.S. Bank Trust National Association (U.S. Bank), the trustee and paying agent for this bond issue, has delivered an indemnity bond to the City of San Jose which will protect the City against future loss if the original bond is subsequently found and presented for payment.

 

Section 53460 et. seq. of the California Government Code requires action by the legislative body of the issuing municipality to replace lost bonds.

 

ANALYSIS

 

The City Attorney has reviewed the affidavit of loss presented by the bondholder as well as the indemnification policy submitted to the City.  Based on this review, the City Attorney has prepared a resolution indicating a finding of competent proof that the bond discussed herein has been lost and that the indemnification policy provided adequately protects the City against any loss from its replacement.

 

Costs of replacing the bond is borne by the bond owner.  The bond to be replaced is shown on the attached schedule.  The resolution, if adopted, will direct the Director of Finance to cause U.S. Bank to replace the lost certificate.

 

COORDINATION

 

This action has been coordinated with the City Attorney’s Office.

 

 

SCOTT P. JOHNSON

Director, Finance Department

 


City of San Jose

REQUEST FOR REPLACEMENT OF LOST BOND

 

May 17, 2001

 

Bond Owner

Bond Lost

Issue

Date Lost

Principal

Trustee/ Paying Agent & Indemnity Bond Co.

Kenneth H. Stringfellow & Myrtle A. Stringfellow Trust

Certificate Number 853

City of San Jose Improvement District #83-176sj CUSIP Number 798160JK4,

unknown

$5,000

U.S. Bank , N.A. Seabord Surety Company