Ord 2010-063-1 - Laserfiche WebLink

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Page 3 Our procedures, as summarized in Exhibits B through B -5, prove the mathematical accuracy of the schedules provided by the Financial Advisor summarizing future escrow account cash receipts and disbursements. The schedules provided by the Financial Advisor and those prepared by us reflect that the anticipated receipts from the SLGS, together with an initial cash deposit of $2.34 to be deposited into the escrow account on December 2, 2010, will be sufficient to pay, when due, the principal and interest related to the Refunded Obligations assuming the 2001 Certificates will be redeemed on August 15, 2011 at 100 percent of par plus accrued interest and the 2002 Certificates, the 2003 Certificates, and the 2003 Bonds will be redeemed on August 15, 2012 at 100 percent of par plus accrued interest. VERIFICATION OF YIELDS The Financial Advisor provided us with schedules (Appendix I) which indicate that the yield on the cash receipts from the SLGS is less than the yield on the Bonds. These schedules were prepared based on the assumed settlement date of December 2, 2010 using a 360 -day year with interest compounded semi- annually. The term "yield ", as used herein, means that yield which, when used in computing the present value of all payments of principal and interest to be paid or received on an obligation produces an amount equal to, in the case of the cash receipts from the SLGS, the purchase price, and in the case of the Bonds, the issue price to the public as represented by the underwriter and provided by the Financial Advisor. In addition, we found that the schedules provided by the Financial Advisor, which assume the redemption of the August 15, 2021 through August 15, 2023 maturities identified on Exhibits C and C -1 at par on August 15, 2020 plus accrued interest, correctly treat those Bonds as yield -to -call Bonds as retired on the respective dates that for each Bond produces the lowest yield for the issue that includes the Bonds. Those Bonds identified as yield -to -call Bonds on the attached Exhibits C and C -1 are those Bonds that are subject to optional redemption and that are issued at an issue price that exceeds the stated redemption price at maturity of such Bonds by more than one - fourth of one percent multiplied by the product of the stated redemption price at maturity of such Bonds and the number of complete years to the first optional redemption date for the Bonds. We found that there are no other yield -to -call Bonds other than those identified on the attached Exhibits C and C -1. As part of our engagement to recalculate the schedules attached as Appendix I we prepared schedules attached hereto as Exhibits B -1 and C independently calculating the yields on (i) the cash receipts from the SLGS calculated on Exhibit B -1, and (ii) the Bonds using the Official Statement provided by the Financial Advisor insofar as the Bonds are described as to the maturity and interest payment dates, dated date, principal amounts, interest rates, optional redemption date and price, and issue price to the public. The results of our calculations, based on the aforementioned assumptions, are summarized below: Yield Exhibit • Yield on the cash receipts from the SLGS 0.280304% B -1 • Yield on the Bonds 2.529643% . C Our procedures, as summarized in Exhibits B -1 and C, prove the mathematical accuracy of the schedules provided by the Financial Advisor summarizing the yields. The schedules provided by the Financial Advisor and those prepared by us reflect that the yield on the cash receipts from the SLGS is less than the yield on the Bonds.