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APFA-2007-002RESOLUTION NO. R- 2007- 002 A RESOLUTION OF THE ANAHEIM PUBLIC FINANCING AUTHORITY DECLARING ITS OFFICIAL INTENT TO REIMBURSE CERTAIN EXPENDITURES FROM PROCEEDS OF INDEBTEDNESS WHEREAS, the Board of Directors of the Anaheim Public Financing Authority (the "Issuer") intends to acquire, construct, and improve certain facilities relating to the City of Anaheim's sewer infrastructure system (the "Project"); WHEREAS, the Issuer expects to pay certain expenditures (the "Reimbursement Expenditures") in connection with the Project prior to the issuance of indebtedness for the purpose of financing costs associated with the Project on a long-term basis; WHEREAS, the Issuer reasonably expects that debt obligations in an amount not expected to exceed $55,000,000 will be issued and that certain of the proceeds of such debt obligations will be used to reimburse the Reimbursement Expenditures; WHEREAS, proceeds of such debt obligations will be allocated to Reimbursement Expenditures no later than 18 months after the later of (i) the date the cost is paid, or (ii) the date the project is placed in service or abandoned (but in no event more than three years after the cost is paid); and WHEREAS, Section 1.150-2 of the Treasury Regulations requires the Issuer to declare its reasonable official intent to reimburse prior expenditures for the Project with proceeds of a subsequent borrowing. NOW, THEREFORE, the Issuer hereby resolves and declares: Section 1. The Issuer finds and determines that the foregoing recitals are true and correct. Section 2. This resolution and declaration is made solely for purposes of establishing compliance with the requirements of Section 1.150-2 of the Treasury Regulations. This resolution and declaration does not bind the Issuer to make any expenditure, incur any indebtedness, or proceed with the Project. Section 3. The Issuer hereby declares its official intent to use proceeds of indebtedness to reimburse itself for Reimbursement Expenditures. Section 4. This resolution and declaration shall take effect from and after its adoption. 1 THE FOREGOING RESOLUTION is approved and adopted by the Board of Directors of the Anaheim Public Financing Authority this 27tYtiay of February 2007, by the following roll call vote: AYES: Chairman Pringle, Authority Members Hernandez, Galloway, Sidhu, Kring NOES: NONE ABSENT: NONE ABSTAIN: NONE ANAHEIM PU FINANCIN THORITY By CHAIRMAN ATTEST• SECRETARY 64543.1 2