NEW ISSUE – Book-Entry Only Rating:S&P: AAA/A-1+(See “RATING” herein)
In the opinion of Orrick, Herrington & Sutcliffe
, Bond Counsel to the Authority, based upon an analysis of existing laws, regulations, rulings and court decisions, and assuming, among other matters, the accuracy of certain representations and compliance with certaincovenants, interest on the Bonds is excluded from gross income for federal income tax purposes under Section 103 of the Internal RevenueCode of 1986 (the “Code”). In the further opinion of Bond Counsel, interest on the Bonds is not a speciﬁc preference item for purposes of the federal individual or corporate alternative minimum taxes, although Bond Counsel observes that such interest is included in adjusted currentearnings when calculating corporate alternative minimum taxable income. Bond Counsel is also of the opinion that interest on the Bondsis exempt from present State of California personal income taxes. Bond Counsel expresses no opinion regarding any other tax consequences related to the ownership or disposition of, or the accrual or receipt of interest on, the Bonds. See “TAX MATTERS.”
$24,405,000CALIFORNIA MUNICIPAL FINANCE AUTHORITY
VARIABLE RATE REVENUE BONDS(LA SIERRA UNIVERSITY)SERIES 2008$12,000,000Series 2008A$12,405,000Series 2008B
Date of Delivery
August 1, as shown on inside cover page
This cover page contains certain information for general reference only. It is not intended to be a summary of this issue.Investors must read the entire Ofﬁcial Statement to obtain information essential to the making of an informed investment decision.Capitalized terms used in this cover page shall have the meanings given such terms herein.
The California Municipal Finance Authority is issuing its Variable Rate Revenue Bonds (La Sierra University), Series 2008A (the “Series2008A Bonds”), and its Variable Rate Revenue Bonds (La Sierra University), Series 2008B (the “Series 2008B Bonds” and collectively with theSeries 2008A Bonds, the “Bonds”). The Bonds are issuable as fully-registered bonds registered in the name of a nominee of The Depository Trust Company, which will act as securities depository for the Bonds. Purchases and tenders of the Bonds may be made in book-entry form only,through brokers and dealers who are, or who act through, DTC Participants. Beneﬁcial Owners of the Bonds will not receive physical delivery of bond certiﬁcates. Payments of the principal and Purchase Price of, premium, if any, and interest on the Bonds will be made to DTC by U.S. BankNational Association, as Trustee. Disbursement of payments to DTC Participants is the responsibility of DTC and disbursement of payments tothe Beneﬁcial Owners is the responsibility of DTC Participants. See APPENDIX C – “BOOK-ENTRY SYSTEM.”The Authority will loan the proceeds of the Bonds to La Sierra University (the “Corporation”) pursuant to a Loan Agreement to providefunds which the Corporation will use to (i) ﬁnance and reﬁnance the acquisition, construction, installation, improvement, renovation, remodeling,furnishing, and/or equipping of certain educational facilities on the campus of La Sierra University, and (ii) pay costs incurred in connection withthe issuance of the Bonds, all as more fully described herein See “ESTIMATED SOURCES AND USES OF PROCEEDS.”The Bonds are being issued as two series (each, a “Series”) of variable rate bonds. The Bonds will initially bear interest at a Weekly Interest Rate and will be available in denominations of $100,000 and any multiple of $5,000 in excess thereof. The Bonds of any Series are subject toconversion to a Term Interest Rate as more fully described herein and are subject to mandatory tender for purchase upon any such conversion.The speciﬁc interest rate with respect to each interest rate period is to be determined by the Remarketing Agent, initially Wells Fargo BrokerageServices, LLC. The Weekly Interest Rate will be computed on the basis of a 365/366-day year and actual days elapsed, payable on the ﬁrst BusinessDay of each calendar month, commencing September 1, 2008.With respect to Weekly Interest Rate Periods, payment of the principal, Purchase Price of, and interest on the Bonds initially will be supportedby an irrevocable, direct-pay letter of credit (the “Letter of Credit”) issued by Wells Fargo Bank, National Association (the “Bank”) pursuant toand subject to the terms of a Reimbursement Agreement. The Letter of Credit will be in effect from the date of issuance of the Bonds through theoccurrence of the earliest of the termination events described herein.
THE BONDS ARE SUBJECT TO OPTIONAL REDEMPTION AND OPTIONAL AND MANDATORY TENDER FOR PURCHASE ASDESCRIBED HEREIN.
The Authority is obligated to pay the principal, premium, if any, and interest on the Bonds solely from the Revenues, which include amountsreceived from the Corporation under the Loan Agreement and amounts received under Credit Facilities for the Bonds, and the other funds pledged therefor under the Indenture. The Corporation’s payment obligations under the Loan Agreement are general, unsecured obligations of the Corporation.
NONE OF THE AUTHORITY, ANY AUTHORITY MEMBER OR ANY PERSON EXECUTING THE BONDS IS LIABLE PERSONALLY ON THE BONDS OR SUBJECT TO ANY PERSONAL LIABILITY OR ACCOUNTABILITY BY REASON OF THEIR ISSUANCE. THEBONDS ARE LIMITED OBLIGATIONS OF THE AUTHORITY, PAYABLE SOLELY FROM AND SECURED BY THE PLEDGE OFCERTAIN REVENUES UNDER THE INDENTURE. NEITHER THE AUTHORITY, ITS MEMBERS, THE STATE OF CALIFORNIA,NOR ANY OF ITS POLITICAL SUBDIVISIONS SHALL BE DIRECTLY, INDIRECTLY, CONTINGENTLY, OR MORALLY OBLIGATEDTO USE ANY OTHER MONEYS OR ASSETS TO PAY ALL OR ANY PORTION OF THE DEBT SERVICE DUE ON THE BONDS, TOLEVY OR TO PLEDGE ANY FORM OF TAXATION WHATEVER THEREFOR OR TO MAKE ANY APPROPRIATION FOR THEIRPAYMENT. THE BONDS ARE NOT A PLEDGE OF THE FAITH AND CREDIT OF THE AUTHORITY, ITS MEMBERS, THE STATE OFCALIFORNIA OR ANY OF ITS POLITICAL SUBDIVISIONS, NOR DO THEY CONSTITUTE INDEBTEDNESS WITHIN THE MEANINGOF ANY CONSTITUTIONAL OR STATUTORY DEBT LIMITATION. THE AUTHORITY HAS NO TAXING POWER.
The Bonds are offered when, as and if issued by the Authority and accepted by the Underwriter subject to the approval of legality by Orrick,Herrington & Sutcliffe
, Bond Counsel, and subject to certain other conditions. Certain legal matters will be passed upon for the Corporationby DLA Piper, San Diego, California, Corporation Counsel, for the Bank by Chapman and Cutler LLP, San Francisco, California, Bank Counsel andfor the Authority by Squire, Sanders & Dempsey,
, Authority Counsel. It is expected that the Bonds will be available for delivery through theDTC book-entry system on or about August 14, 2008.
Wells Fargo Institutional Securities, LLC
Dated: August 7, 2008