Resolution 2768-03
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RESOLUTION] NO. 216.8-03
SWI'H TAHOE PUBLIC
[ORDINANCE/RESOLUTIONL AUTHORIZING THE UTILITY DIST'ipUBLIC
AGENCY"
TO JOIN WITH OTHER PUBLIC AGENCIES
AS A PARTICIPANT OF THE
CALIFORNIA ASSET MANAGEMENT TRUST
AND TO INVEST IN SHARES OF THE TRUST
AND IN INDIVIDUAL PORTFOLIOS
WHEREAS, Section 6502 of Tide 1, Division 7, Chapter 5 of the Government
Code of the State of California (the 'Joint Exercise of Powers Act") provides that, if
authorized by their legislative or other governing bodies, two or more public agencies by
agreement may joindy exercise any power common to the contracting parties; and
WHEREAS, under Section 6500 of the Joint Exercise of Powers Act, a "public
agency" includes but is not limited to any California county, county board of education,
county superintendent of schools, city, city and county, public corporation, public district,
regional transportation commission or state department or agency; and
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WHEREAS, public agencies which constitute local agencies, as that term is defined
in Section 53630 ofTicle 5, Division 2, Part 1, Chapter 4, Article 2 of the Government Code
of the State of California (the "California Government Code"), are authorized pursuant to
Section 53601 and/or 53635 thereof to invest all money belonging to, or in the custody of,
the local agency in certain specified investments; and
WHEREAS, the California Asset Management Trost (the "Trust") was established, (
pursuant to and in accordance with the Joint Exercise of Powers Act, by a Declaration of
Trust, made as of December 15, 1989 and as subsequently amended (the "Declaration of
Trust'), as a vehicle for public agencies to jointly exercise their common power to invest
bond proceeds and other funds; and
WHEREAS, pursuant to and in accordance with the Joint Exercise of Powers Act,
the Public Agency desires to join the other public agencies which are or will be Participants
of the Trost by adopting and executing the Declaration of Trost, a form which has been
presented to this meeting; and
WHEREAS, the Public Agency is a public agency as that term is defined in the
Joint Exercise of Powers Act and a local agency as that term is defined in Section 53630 of
the California Government Code;
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WHEREAS, the Public Agency is otherwise permitted to be a Participant of the
Trust and to invest funds in the Trust and in the Individual Portfolios to be managed by the
Investment Adv1ser to the Trust ("Individual Portfolios'); and
WHEREAS, there has been presented to this meeting an Information Statement
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describing the Trust and the Individual Portfolios (the "Information Statement'');
NOW, THEREFORE, BE IT [ORDAINED/RESOLVED] by the (Governing
Body) of the Public Agency as follows:
Section 1. The Public Agency shall join with other public agencies pursuant to and
in accordance with the Joint Exercise of Powers Act by executing the Declaration of Trust
and thereby becoming a Participant in the Trust, which Declaration of Trust is hereby
approved and adopted. A copy of the Declaration of Trust shall be filed with the minutes
of the meeting at which this (Ordinance/Resolution) was (enacted/adopted). The
(presiding Officer of Governing Body) is hereby authorized to execute, and the (Attesting
Officer of Governing Body) is hereby authorized to attest and deliver, the Declaration of
Trust, in substantially the form presented at this meeting.
Section 2. The Public Agency is hereby authorized to purchase shares in the Trust
from time to time with available funds of the Public Agency, and to redeem some or all of
those shares from time to time as such funds are needed.
Section 3. The Public Agency is hereby authorized to invest available funds of the
Public Agency from time to time in one or more Individual Portfolios managed by the
Investment Adviser to the Trust and described in the Information Statement.
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Section 4. The appropriate officers, agents and employees of the Public Agency are
hereby authorized and directed in the name and on behalf of the Public Agency to take all
actions and to make and execute any and all certificates, requisitions, agreements, notices,
consents, warrants and other documents, which they, or any of them, might deem necessary
or appropriate in order to accomplish the purposes of this (Ordinance/Resolution).
Section 5. This (Ordinance/Resolution) shall take effect at the earliest date
permitted by law.
By:
(Tide) Board President
South Tahoe Public Utility District
A TrEST:
By: ,-~~::5J-,~
(Name) :Kath~arp
(Tide)
Clerk of the Board and Ex-0fficio Secretary to the
Board of Directors
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(Date) July 17, 2003
Ayes: Directors Schafer, Jones, Comte, Mosbacher
Absent: Director Wallace
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CALIFORNIA ASSET
MANAGEMENT PROGRAM
A PUBLIC JOINT POWERS AUTHORITY
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Page Page
ARTICLE I. Name, Purpose and Representations I ARTICLE VI. Shares of Beneficial Interest 10
Section 1.1. Name I Section 6.1. Beneficial Interest 10
Section 1.2. Purpose 2 Section 6.2. Rights of Participants 10
Section 1.3. Representations of the Participants 2 Section 6.3. Trust Only II
Section 6.4. Register of Shares II
ARTICLE II. Trustees 2 Section 6.5. Transfer of Shares II
Section 2.1. Initial Trustees 2 Section 6.6. Notices II
Section 2.2. Number, Qualification, Election Section 6.7. Approval Powers 12
and Tenn of Trustees 3 Section 6.8. Series of Shares 12
Section 2.3. Resignation and Removal 3
Section 2.4. Vacancies 3 ARTICLE VII. Redemptions 14
Section 7.1. Redemptions 14
ARTICLE III. Powers of Trustees 4 Section 7.2. Suspension of Right of
Section 3.1. General 4 Redemption 14
Section 3.2. Investments 4 Section 7.3. Redemptions to Reimburse Trust
Section 3.3. Legal Title 5 for Loss on nonpayment for Share
Section 3 A. Issuance and Redemption of Shares 5 or for Other Charges 14
Section 3.5. Borrowing Money and Lending Section 704. Redemptions Pursuant to Constant
Trust Property 5 Net Assct Value Policy 14
Section 3.6. Delegation and Committees 5 Section 7.5. Redemptions in Kind 15
Section 3.7. Collection and Payment 5 Section 7.6. Minimum Investment 15
Section 3.8. Expenses and Limits Thereon 6
Section 3.9. Litigation 6 ARTICLE VIII. Detennination of Net Asset Value,
Section 3.10. Manner of Acting and By-Laws 6 Net Income and Distributions 15
Section 3.11. Miscellaneous Powers 6 Section 8.1. By-Laws to Govern Net Asset, Net
Income and Distributi on Procedures 15
ARTICLE IV. Investment Advisory and Other
Services to Trust 7 ARTICLE IX. Duration, Termination and
\., Section 4.1. Investment Adviser and Amendment 15
Approval of Agreements 7 Section 9.1. Duration 15
Section 4.2. Other Activities of Investment Adviser 8 Section 9.2. Tennination of Trust 16
Section 4.3. Other Services to the Trust 8 Section 9.3. Amendment Procedure 16
Section 9.4. Merger, Consolidation and Sale
ARTICLE V. Limitations of Liability of of Assets 17
Participants, Trustees and Others 8
Section 5.1. No Personal Liability of Participants, ARTICLE X. Miscellaneous 17
Trustees and Others 8 Section 10.1. Governing Law 17
Section 5.2. Non-Liability and Indemnification Section 10.2. Counterparts 17
of Trustees and Others 9 Section 10.3. Adoption by California
Section 5.3. Surety Bond Required 9 Public Agencies 17
Section 5 A. No Duty of Investigation and Notice Section lOA. Certificates 17
in Trust Instruments 9 Section 10.5. Provisions in Conflict with Law or
Section 5.5. Reliance on Experts 10 Regulations 18
Section 5.6. Immunity from Liability, Etc. 10 Section 10.6. Index and Headings for
Section 5.7. Further Restriction of Duties and Reference Only 18
Liabilities 10 Section 10.7. Successors in Interest 18
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THIS DECLARATION OF TRUST made as of December 15, 1989 by Monterey Peninsula
Water Management District and Placer County, as Initial Participants, and amended as of November
25, 1996.
WITNESSETH
WHEREAS, Section 6502 of Title 1, Division 7, Chapter 5 of the Government Code of the
State of California (the "Joint Exercise of Powers Act") provides that "if authorized by their legislative
or other governing bodies, two or more Public Agencies by agreement may jointly exercise any power
common to the contracting parties;"
WHEREAS, Section 6500 of the Joint Exercise of Powers Act defines "Public Agency" to
include "any state department or agency, a county, county board of education, county superintendent
of schools, city, public corporation, public district, or regional transportation commission of this
state;"
WHEREAS, the Initial Participants are both California Public Agencies and are both
authorized to invest funds pursuant to the Government Code of the State of California;
WHEREAS, the Initial Participants have been authorized by their legislative or other
governing bodies, and desire to agree by this Declaration of Trust, to jointly exercise their common
power to invest funds through creation of the California Asset Management Trust (the "Trust") as a
separate entity under the Joint Exercise of Powers Act; and
WHEREAS, the Initial Participants anticipate that other California Public Agencies may wish
to become Participants by adopting and executing this Declaration of Trust and thus becoming parties
to it (the Initial Participants and any subsequent participants being referred to herein as the
"Participants").
NOW, THEREFORE, the Initial Participants hereby declare that all money and property
contributed to the Trust established under this Declaration of Trust shall be held and managed in trust
for the benefit of holders, from time to time, of the Shares of Beneficial Interest (the "Shares") issued
hereunder and subject to the provisions hereof.
ARTICLE I. NAME, PURPOSE AND REPRESENTATIONS
Section 1.1. Name. The name of the trust created hereby is CALIFORNIA ASSET
MANAGEMENT TRUST. So far as may be practicable, the Trustees shall conduct the Trust's
activities, execute all documents and sue or be sued under that name, which name (and the word
"Trust" wherever used herein) shall refer to the Trustees as Trustees, and not as individuals or
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personally, and shall not refer to the officers, employees, agents or Participants of the Trust. If the
Trustees determine that the use of that name is not advisable, they may use another designation or
adopt another name under which the Trust may hold property or conduct its activities. The Trust shall
constitute a separate public entity within the meaning of Section 6507 of the Joint Exercise of Powers
Act.
Section 1.2. Purpose. The purpose of the Trust is to provide California Public Agencies with
an instrumentality or agency to pool their bond proceeds and other funds and to facilitate the
investment of and accounting for such funds. Only Public Agencies of the State of California,
authorized under the Joint Exercise of Powers Act or other applicable California statutes to enter into
joint arrangements of this nature, may own Shares, and such California Public Agencies may purchase
Shares only after their governing bodies have become Participants of this Trust by adopting and
executing this Declaration of Trust.
Section 1.3. Representations of the Participants. Each Participant represents and warrants
to the other Participants, but only as to itself, as follows:
(a) The Participant is duly organized and validly existing as a public agency of the State of
California, as that term is defined in Section 6500 of the Joint Exercise of Powers Act, and has full
legal right, power and authority to enter into this Declaration of Trust, to observe and perform its
obligations hereunder and to invest its assets as provided herein; and by all necessary official actions
the Participant has duly authorized and approved the execution hereof, the observance and
performance of its obligations hereunder and the investment of its assets as provided herein.
(b) This Declaration of Trust constitutes a legal, valid and binding obligation of the Participant
enforceable against the Participant in accordance with its terms, except as enforcement may be limited
by bankruptcy, insolvency, reorganization, moratorium or similar laws or equitable principles relating
to or limiting creditors rights generally, and by the application of equitable remedies in appropriate
cases.
ARTICLE II. TRUSTEES
Section 2.1. Initial Trustees. By the execution of this Declaration of Trust, the Initial
Participants appoint the following five individuals to serve as initial Trustees:
Bruce Buel
Earl Corin
Nancy E. Hicks
James S. Kennedy
Robert C. Leland
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Section 2.2. Number, Qualification, Election and Term of Trustees. The number of
Trustees shall be fixed from time to time by resolution of the Trustees; provided, however, that the
number of Trustees shall not be less than three and not greater than fifteen and shall not be less than
the number of classes of California Public Agencies entitled to representation on the Board of Trustees
as provided in the By-Laws. All Trustees shall be members of the governing body, officers or full-time
employees of California Public Agencies. Other than the initial Trustees and Trustees named to fill
vacancies as provided in Section 2.4., the Trustees shall be appointed by the Board of Trustees and
approved annually by the Participants. Except in the event of resignations or removals pursuant to
Section 2.3., each Trustee shall hold office until his or her successor is appointed and approved by the
Board of Trustees and the Participants and qualified to serve as Trustee. Each Trustee shall either sign
this Declaration of Trust or agree in writing to be bound by it.
Section 2.3. Resignation and Removal. Any Trustee may resign his or her trust (without
need for prior or subsequent accounting) by an instrument in writing signed by such Trustee and
delivered to the other Trustees, and such resignation shall be effective upon such delivery, or at a later
date according to the terms of the instrument. A Trustee who has ceased to be qualified as provided in
the By-Laws, who has died, who has been judged incompetent or bankrupt, or for whom a guardian or
conservator has been appointed, shall be deemed to have resigned as of the date of such
disqualification, death, adjudication or appointment. Any Trustee may be removed, with or without
cause, by the action of two-thirds of the remaining Trustees. Upon the resignation or removal of a
Trustee, such former Trustee shall execute and deliver such documents as the remaining Trustees shall
require for the purpose of conveying to the Trust or the remaining Trustees any Trust property held in
the name of the resigning or removed Trustee. Upon the incapacity or death of any Trustee, his or her
legal representative shall execute and deliver such documents as the remaining Trustees shall require
as provided in the preceding sentence.
The Superior Court of the City and County of San Francisco, California, may at the suit of any
Participants holding at least 10% of the Shares, remove from office any Trustee in case of fraudulent
or dishonest acts or gross abuse of authority or discretion with reference to the Trust and may bar from
reelection any Trustee so removed for a period determined by the Court.
Section 2.4. Vacancies. The term of office of a Trustee shall terminate and a vacancy shall
occur in the event of the disqualification, death, resignation, removal, bankruptcy, adjudicated
incompetence or other incapacity to perform the duties of the office of a Trustee. No such vacancy
shall operate to annul this Declaration of Trust or to remove any existing agency created pursuant to
the terms of this Declaration of Trust. In the case of an existing vacancy, including a vacancy existing
by reason of an increase in the number of Trustees, the remaining Trustees shall fill such vacancy by
the appointment of such other person as they in their discretion shall see fit and as is qualified as
provided herein and in the By-Laws. If there shall be no remaining Trustee, any Participant may
petition the Superior Court of the City and County of San Francisco to appoint a Trustee who is
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qualified as provided herein and by the By-Laws. Any such appointment shall not become effective,
however, until the person appointed shall have accepted in writing such appointment and agreed in
writing to be bound by the terms of this Declaration of Trust. An appointment of a Trustee may be
made in anticipation of a vacancy to occur at a later date by reason of resignation, provided that such
appointment shall not become effective prior to such resignation. Whenever a vacancy in the number
of Trustees shall occur, until such vacancy is filled as provided in this Section 2.4., the Trustees in
office, regardless oftheir number, shall have all the powers granted to the Trustees and shall discharge
all the duties imposed upon the Trustees by this Declaration of Trust.
ARTICLE III. POWERS OF TRUSTEES
Section 3.1. General. The Trustees shall have exclusive and absolute control over the Trust
property and over the affairs of the Trust to the same extent as if the Trustees were the sole owners of
the Trust property in their own right, but with such powers of delegation as may be permitted by this
Declaration of Trust. The Trustees shall have power to conduct the affairs of the Trust and carry on its
operations in any and all of its branches and maintain offices both within and without the State of
California, and to do all such other things and execute all such instruments as the Trustees deem
necessary, proper or desirable in order to promote the interests of the Trust although such things are
not herein specifically mentioned. Any determination as to what is in the interests of the Trust made
by the Trustees in good faith shall be conclusive. In construing the provisions of this Declaration of
Trust, the presumption shall be in favor of a grant of a power to the Trustees. The enumeration of any
specific power herein shall not be construed as limiting the aforesaid powers. Such powers of the
Trustees may be exercised without order of or resort to any court. Notwithstanding the foregoing, the
investment powers of the Trustees under this Declaration of Trust shall be subject to any restrictions
upon the manner of exercising such powers imposed by the laws of the State of California, including
Section 53635 of Title 5, Division 7, Part l, Chapter 4, Article 2 of the Government Code on Placer
County, as an Initial Participant. In the event that such Initial Participant (or any successor Participant
designated as described below) ceases to be a party to this Declaration of Trust, the Trustees shall
designate another Participant as a successor Participant for purposes of this Section.
Section 3.2. Investments. The Trustees shall have the power to subscribe for, invest in,
reinvest in, purchase or otherwise acquire, own, hold, pledge, sell, assign, transfer, exchange,
distribute, lend or otherwise deal in or dispose of investments of every nature and kind, provided such
investment is (in the sole and absolute discretion of the Trustees) consistent with the investment
objectives and policies set forth in the Trust's Information Statement, as most recently amended or
supplemented, and to exercise any and all rights, powers and privileges of ownership or interest in
respect of any and all such investments of every kind and description, including without limitation, the
right to consent and otherwise act with respect thereto, with power to designate one or more persons,
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firms, associations or corporations to exercise any of such rights, powers and privileges in respect of
any of such investments.
Section 3.3. Legal Title. Legal title to all the Trust property shall be vested in the Trustees as
joint tenants, except that the Trustees shall have power to cause legal title to any Trust property to be
held by or in the name of one or more of the Trustees, or in the name of the Trust, or in the name of
any other person as nominee, on such terms as the Trustees may determine, provided that the interest
of the Trust therein is appropriately protected. The right, title and interest of the Trustees in the Trust
property shall vest automatically in each person who may hereafter become a Trustee. Upon the
resignation, removal, incapacity, disqualification or death of a Trustee they shall automatically cease
to have any right, title or interest in any of the Trust property, and the right, title and interest of such
Trustee in the Trust property shall vest automatically in the remaining Trustees. Such vesting and
cessation of title shall be effective whether or not conveyancing documents have been executed and
delivered.
Section 3.4. Issuance and Redemption of Shares. The Trustees shall have the power to
issue, sell, repurchase, redeem, retire, cancel, acquire, hold, resell, reissue, dispose of, transfer, and
otherwise deal in Shares and, subject to the provisions hereof, to apply to any such repurchase,
redemption, retirement, cancellation or acquisition of Shares any funds or property of the Trust,
whether capital or surplus or otherwise, to the full extent now or hereafter permitted by California law.
Section 3.5. Borrowing Money and Lending Trust Property. Sllbject to applicable law,
the Trustees shall have power to borrow money or otherwise obtain credit and to secure the same by
mortgaging, pledging or otherwise subjecting as security the assets of the Trust, to endorse, guarantee,
or undertake the performance of any obligation, contract or engagement of any other person and to
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Section 3.6. Delegation and Committees. The Trustees shall have power to delegate from
time to time to such of their number or to officers, employees or agents of the Trust the doing of such
things and the execution of such instruments either in the name of the Trust or the names of the
Trustees or otherwise as the Trustees may deem expedient, to the same extent as such delegation is
permitted by law and consistent with the By-Laws.
Section 3.7. Collection and Payment. The Trustees shall have power to collect all property
due to the Trust; to pay all claims, including taxes, against the Trust property; to prosecute, defend,
compromise or abandon any claims relating to the Trust property; to foreclose any security interest
securing any obligation by virtue of which any property is owed to the Trust; and to enter into
releases, agreements and other instruments.
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Section 3.8. Expenses and Limits Thereon. The Trustees shall have the power to incur and
pay any expenses which in the opinion of the Trustees are necessary or incidental to carry out any of
the purposes of this Declaration of Trust. The Trustees shall fix the compensation of all officers and
employees who are not Trustees.
Section 3.9. Litigation. The Trustees shall have the power to engage in and to prosecute,
defend, compromise, abandon, or adjust, by arbitration or otherwise, any actions, suits, proceedings,
disputes, claims, and demands relating to the Trust or the Trust property, and, out of the Trust
property, to payor to satisfy any debts, claims or expenses incurred in connection therewith, including
those of litigation, and such power shall include without limitation the power of the Trustees or any
appropriate committee thereof, in the exercise of their or its good faith business judgment, consenting
to dismiss any action, suit, proceeding, dispute, claim, or demand, derivative or otherwise, brought by
any person, including a Participant in such Participant's own name or in the name of the Trust,
whether or not the Trust or any of the Trustees may be named individually therein or the subject
matter arises by reason of business for or on behalf of the Trust.
Section 3.10. Manner of Acting and By-Laws. Except as otherwise provided herein or in
the By-Laws, any action to be taken by the Trustees may be taken by a majority of the Trustees
present at a meeting of Trustees (a quorum being present). The Trustees may adopt By-Laws not
inconsistent with this Declaration of Trust to provide for the conduct of the affairs of the Trust and
may amend or repeal such By-Laws.
Section 3.11. Miscellaneous Powers. The Trustees shall have the power to: (a) employ or
contract with such persons as the Trustees may deem desirable for the transaction of the affairs of the
Trust; (b) to the extent permitted by law, enter into joint ventures, partnerships and any other
combinations or associations; (c) remove Trustees or fill vacancies in or add to their number, elect and
remove such officers and appoint and terminate such agents or employees as they consider
appropriate, and appoint from their own number and others, and terminate, anyone or more
committees which may exercise some or all of the power and authority of the Trustees as the Trustees
may determine; (d) purchase, and pay for out of Trust property, insurance policies insuring the
Trustees, officers, employees, agents, Participants, investment advisers, distributors, or independent
contractors of the Trust against all claims arising by reason of holding any such position or by reason
of any action taken or omitted by any such person in such capacity, whether or not constituting
negligence, or whether or not the Trust would have the power to indemnify such person against such
liability; (e) to the extent permitted by law, indemnify any person with whom the Trust has dealings to
such extent as the Trustees shall determine; (f) determine and change the fiscal year of the Trust and
the method by which its accounts shall be kept; and (g) adopt a seal for the Trust but the absence of
such seal shall not impair the validity of any instrument executed on behalf of the Trust.
In addition to these specific powers, the Trustees shall also have all other powers consistent
with the Joint Exercise of Powers Act and the laws of California governing California business trusts
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and reasonably necessary from time to time to carry out the purposes of the Trust as set forth in
Section 1.2.
ARTICLE IV. INVESTMENT ADVISORY AND OTHER SERVICES TO TRUST
Section 4.1. Investment Adviser and Approval of Agreements. The Trustees are
responsible for the general policies of the Trust and for such general supervision of the business of the
Trust conducted by all officers agents, employees, advisers, managers or independent contractors of
the Trust as may be necessary to insure that such business conforms to the provisions of this
Declaration of Trust. However, the Trustees shall not be required personally to conduct all the
business of the Trust, and consistent with their ultimate responsibility as stated above, the Trustees
shall have the power to appoint, employ or contract with any person (including one or more of
themselves or any corporation, partnership, or Trust in which one or more of them may be directors,
officers, stockholders, partners or trustees) as the Trustees may deem necessary or proper for the
transaction of the business of the Trust. The Trustees may in their discretion, from time to time, enter
into an investment advisory or management contract whereby the other party to such contract shall
undertake to furnish the Trust such management, investment advisory or supervisory, administrative,
accounting, legal, statistical, research, and promotional facilities and services, and such other facilities
and services, if any, as the Trustees may in their discretion determine. The Trustees may authorize the
investment adviser to effect purchases, sales, loans or exchanges of portfolio securities of the Trust on
behalf of the Trustees or may authorize any officer, employee or Trustee to effect such purchases,
sales, loans or exchanges pursuant to recommendations of the investment adviser, all without further
action by the Trustees. Any such purchases, sales, loans and exchanges shall be deemed to have been
authorized by all of the Trustees.
The Trustees shall have the power to determine the compensation and other terms of
employment or contract of the investment adviser or any other person whom they may employ or with
whom they may contract; provided, however, that any determination to employ or contract with any
Trustee or any person of which a Trustee is an Affiliate, shall be valid only if made, approved or
ratified by a majority of the Trustees who are not Affiliates of such person. The Trustees may exercise
broad discretion in allowing the investment adviser to administer and regulate the operations of the
Trust, to act as agent for the Trust, to execute documents on behalf of the Trustees, and to make
decisions which conform to general policies and general principles previously established by the
Trustees. For purposes of this Declaration of Trust and the By-Laws, Affiliate shall mean, as to any
person, any other person who owns beneficially, directly or indirectly, 1% of the outstanding capital
stock or equity interest of such person or of any other person who controls, is controlled by or is under
common control with such person, or is an officer, retired officer, director, employee, partner or
Trustee of such person or of any other person who controls, is controlled by or is under common
control with such person.
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Section 4.2. Other Activities of Investment Adviser. The investment adviser shall not be
required to administer the investment activities of the Trust as its sole and exclusive function and may
have other business interests and may engage in other activities similar or in addition to those relating
to the Trust, including the rendering of services and advice to other persons and the management of
other investments (including investments of the investment adviser and its Affiliates).
The investment adviser shall be required to use its best efforts to present a continuing and
suitable investment program to the Trust which is consistent with the investment policies and
objectives of the Trust but neither the investment adviser nor any Affiliate of the investment adviser
shall be obligated to present any particular investment opportunity to the Trust even if such
opportunity is of a character which, if presented to the Trust, could be taken by the Trust, and, subject
to the foregoing, shall be protected in taking for its own account or recommending to others any such
particular investment opportunity.
Section 4.3. Other Services to the Trust. The Trustees may from time to time in their
discretion enter into contracts or agreements with independent contractors to carry out the following
functions: (1) transfer agent and dividend disbursing agent; (2) administrator, to maintain the books
and records of the Trust, to supervise all aspects of the Trust's operations, including periodic updating
of the Trust's Information Statement, to prepare the Trust's tax returns and periodic reports to
Participants, to compute the Trust's daily net asset value and yield, to provide office space, equipment
and facilities necessary for the Trust's operations and to provide such other administrative services as
the Trustees may require; (3) distributor, to act as the Trust's sales agent for the distribution of the
Shares, (4) customer service agent, to provide information to California Public Agencies which are
Participants or are interested in becoming Participants; (5) custodian bank, to hold all money and
securities constituting the Trust property; (6) independent certified public accountants, to perform an
annual audit and provide such other services as the Trustees may require, and (7) legal counsel. The
foregoing specific list shall not prevent the Trustees from employing other persons to provide such
advice, assistance or services as the Trustees may from time to time require to carry out the purposes
of the Trust as set forth in Section 1.2.
ARTICLE V.
LIMITATIONS OF LIABILITY OF PARTICIPANTS, TRUSTEES AND OTHERS
Section 5.1. No Personal Liability of Participants, Trustees and Others. No Participant
shall be subject to any personal liability whatsoever to any person in connection with Trust property or
the acts, obligations or affairs of the Trust. Subject to Section 5.2., no Trustee, officer, employee or
agent of the Trust shall be subject to any personal liability whatsoever to any person in connection
with Trust property or the acts, obligations or affairs of the Trust, and all such persons shall look
solely to the Trust property for satisfaction of claims of any nature arising in connection with the
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affairs of the Trust. No Participant, Trustee, officer, employee, or agent, as such, of the Trust, made a
party to any suit or proceeding to enforce any such liability, shall be held to any personal liability. The
Trust shall indemnify and hold each Participant harmless from and against all claims and liabilities to
which such Participant may become subject by reason of its being or having been a Participant and
shall reimburse such Participant for all legal and other expenses reasonably incurred by it in
connection with any such claim or liability; provided that such indemnity or reimbursement shall be
made from assets (or proceeds thereof or income therefrom) of the one or more Series of Shares of the
Trust in respect of which such claim or liability arose and not from the assets (or proceeds or income
therefrom) of any other Series of Shares of the Trust. The rights accruing to a Participant under this
Section 5.1. shall not exclude any other right to which such Participant may be lawfully entitled, nor
shall anything herein contained restrict the right of the Trust to indemnify or reimburse a Participant in
any appropriate situation even though not specifically provided herein.
Section 5.2. Non-Liability and Indemnification of Trustees and Others. No Trustee,
officer, employee or agent of the Trust shall be liable to the Trust, to its Participants, or to any
Participant, Trustee, officer, employee or agent thereof for any action or failure to act (including
without limitation the failure to compel in any way any former or acting Trustee to redress any breach
of trust), except for its, his or her own bad faith, willful misfeasance, gross negligence or reckless
disregard of duty. Each Trustee, officer, employee and agent of the Trust shall be indemnified as
provided in the By-Laws and to the fullest extent provided by California law.
Section 5.3. Surety Bond Required. The Trustees shall obtain a surety bond in such
amounts and with such terms as they shall determine pursuant to Section 6505.1 of Title 1, Division 7,
Chapter 5 of the Government Code of the State of California.
Section 5.4. No Duty of Investigation and Notice in Trust Instruments. No purchaser,
lender, transfer agent or other person dealing with the Trustees or any officer, employee or agent of the
Trust shall be bound to make any inquiry concerning the validity of any transaction purporting to be
made by the Trustees or by such officer, employee or agent or be liable for the application of money or
property paid, loaned, or delivered to or on the order of the Trustees or of such officer, employee or
agent. Every obligation, contract, instrument, certificate, Share or other security of the Trust and
undertaking, and every other document executed in connection with the Trust, shall be conclusively
presumed to have been executed or done by the executors thereof only in their capacity as Trustees
under this Declaration of Trust or in their capacity as officers, employees or agents of the Trust. Every
written obligation, contract, instrument, certificate, Share or other security of the Trust or undertaking
made or issued by the Trustees shall recite that it is executed by them not individually, but as Trustees
under this Declaration of Trust, and that the obligations of any such instruments are not binding upon
any of the Trustees or Participants individually, but bind only the Trust property, but the omission of
such recital shall not operate to bind the Trustees or Participants individually.
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Section 5.5. Reliance on Experts. Each Trustee, officer and employee of the Trust shall, in
the performance of his or her duties, be fully protected with regard to any act or any failure to act
resulting from reliance in good faith upon the books of account or other records of the Trust, upon an
opinion of counsel, or upon reports made to the Trust by any of its officers or employees or by the
investment adviser, administrator, transfer agent, custodian, distributor accountants, appraisers or
other experts or consultants selected with reasonable care by the Trustees, officers or employees of the
Trust.
Section 5.6. Immunity from Liability, Etc. All of the privileges and immunities from
liability, all exemptions from laws, ordinances and rules, and all pension, relief, disability, workmen's
compensation, and other benefits which apply to the activity of Board members, officers, agents or
employees of the Initial Participants and any additional Participants when performing their functions
within the territorial limits of their respective Public Agencies, shall apply to them to the same degree
and extent while engaged in the performance of any of their functions and duties associated with the
Trust.
Section 5.7. Further Restriction of Duties and Liabilities. Without limiting the foregoing
provisions of this Article V, the Trustees, officers, employees, agents and Participants of the Trust
shall in no event have any greater duties or liabilities than those imposed by applicable law as shall be
in effect from time to time.
ARTICLE VI. SHARES OF BENEFICIAL INTEREST
Section 6.1. Beneficial Interest. The interest of the beneficiaries hereunder shall be divided
into transferable units to be called Shares of Beneficial Interest, $0.01 par value (the "Shares"). The
number of Shares authorized hereunder is unlimited. Except as otherwise provided in this Section 6.1.
and in Section 6.8. hereof, each Share shall represent an equal proportionate share in the net assets of
the Trust. Each Share of any Series shall represent an equal proportionate share in the assets of that
Series with each other Share in that Series. The Trustees may divide or combine the shares of any
Series into a greater or lesser number of shares of that Series without thereby changing the
proportionate interests in the assets of that Series. There is hereby established and designated one
Series of Shares to be known as the "Cash Reserve Portfolio" Series. Subject to the provisions of
Section 6.8. hereof, the Trustees may authorize the creation of additional Series of Shares (the
proceeds of which may be invested in separate, independently managed portfolios). All Shares issued
hereunder, including, without limitation, Shares issued in connection with a dividend in Shares or a
division of Shares, shall be fully paid and nonassessable.
Section 6.2. Rights of Participants. The ownership of the Trust property of every
description and the right to conduct the affairs of the Trust herein before described are vested
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exclusively in the Trustees, and the Participants shall have no interest therein other than the beneficial
interest conferred by their Shares, and they shall have no right to call for any partition, division,
dividend or distribution of any property, profits, rights or interests of the Trust nor can they be called
upon to assume any losses of the Trust or suffer an assessment of any kind by virtue of their
ownership of Shares. The Shares shall be personal property giving only the rights specifically set forth
in this Declaration of Trust. The Shares shall not entitle the holder to preference, preempti'/e,
appraisal, conversion or exchange rights, except as the Trustees may determine.
Section 6.3. Trust Only. It is the intention of the Trustees to create only the relationship of
Trustee and beneficiary between the Trustees and each Participant from time to time. It is not the
intention of the Trustees to create a general partnership, limited partnership, joint stock association,
corporation bailment or any form of legal relationship other than a trust. Nothing in this Declaration of
Trust shall be construed to make the Participants, either by themselves or with the Trustees, partners or
members of a partnership or a joint stock association.
Section 6.4. Register of Shares. A register shall be kept at the principal office of the Trust
or at such place as the Trustees shall designate containing the names and addresses of all Participants
and the number of Shares held by them respectively and a record of all transfers thereof. Such register
shall be conclusive as to which California Public Agencies are the holders of the Shares and which
California Public Agencies ,hall be entitled to receive distributions or otherwise to exercise or enjoy
the rights of Participants. N, Participant shall be entitled to receive payment of any distribution, nor to
have rights given to it as herein or in the By-Laws provided, until its correct name and address has
been given to the transfer agent or such other officer or agent of the Trustee as shall keep the register.
The Trustees, in their discretion, may but need not authorize the issuance of Share certificates and
promulgate appropriate rules and regulations as to their use.
Section 6.5. Transfer of Shares. Shares shall be transferable on the records of the Trust only
by the record holder thereof or by its agent thereunto duly authorized in writing, upon delivery to the
transfer agent of a duly executed instrument of transfer, together with such evidence of the
genuineness of each such execution and authorization and of other matters as may reasonably be
required. Upon such delivery the transfer shall be recorded on the register of the Trust. Until such
record is made, the Participant of record shall be deemed to be the holder of such Shares for all
purposes hereunder and neither the Trustees nor any transfer agent nor any officer, employee or agent
of the Trust shall be affected by any notice of the proposed transfer. No Shares may be transferred to a
transferee other than a California Public Agency or the Trust itself. Any attempted transfer to any
other person shall be void and of no effect.
Section 6.6. Notices. Any and all notices and communications to which a Participant may be
entitled shall be deemed duly given or made if delivered in person or mailed, postage prepaid,
addressed to the Participant of record at its address as recorded on the register of the Trust. In
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addition to any other notice or communication to which a Participant may be entitled, each Participant
shall be entitled to notice of any amendment to this Declaration of Trust or of any matter which is
approved by the Participants.
Section 6.7. Approval Powers. The following matters alone shall require the approval of
Participants: (i) the appointment of Trustees as provided in Section 2.2., (ii) liquidation of any Series
as provided in Section 6.8.(e), (iii) termination of the Trust as provided in Section 9.2., (iv)
amendment of this Declaration of Trust to the extent provided in Section 9.3., (v) merger,
consolidation or sale of assets of the Trust as provided in Section 9.4., (vi) a change in the investment
restrictions or fundamental policies set forth in the Information Statement, except as set forth therein,
and (vii) such additional matters relating to the Trust as may be required by this Declaration of Trust
or the By-Laws or as the Trustees may consider necessary or desirable. Participants shall be entitled to
exercise such approval powers in proportion to the number of full and fractional Shares held. Shares
shall not be cumulated for the purpose of approving Trustees. Until Shares are issued, the Trustees
may exercise all rights of Participants and may take any action required by law, this Declaration of
Trust or the By-Laws to be taken by Participants. The By-Laws may include further provisions for the
approval of Participants and related matters.
Section 6.8. Series of Shares. The following provisions are applicable regarding the Series
of Shares of the Trust established and designated by Section 6.1. hereof and shall be applicable if the
Trustees shall establish and designate additional Series as provided in that Section:
(a) The number of shares of each Series that may be issued shall be unlimited. The Trustees
may classify or reclassify any unissued shares of any Series or any shares previously issued and
reacquired into one or more Series that may be established and designated from time to time. Shares
reacquired by the Trust shall be canceled and restored to the status of authorized and unissued Shares
undesignated as to Series.
(b) All consideration received by the Trust for the issue or sale of Shares of a particular Series,
together with all assets in which such consideration is invested or reinvested, all income, earnings,
profits and proceeds thereof, including any proceeds derived from the sale, exchange or liquidation of
such assets, and any funds or payments derived from reinvestment of such proceeds in whatever form
the same may be, shall irrevocably belong to that Series for all purposes, subject only to the rights of
creditors, and shall be so recorded upon the hooks of account of the Trust. In the event that there are
any assets, income, earnings, profits, or proceeds thereof, or funds or payments which are not readily
identifiable as belonging to any particular Series, the Trustees shall allocate them among anyone or
more of the Series established and designated from time to time in such manner and on such basis as
they, in their sole discretion, deem fair and equitable. Each such allocation by the Trustees shall be
conclusive and binding upon the Shareholders of all Series for all purposes.
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(c) The assets belonging to each particular Series shall be charged with the liabilities of the
Trust in respect of that Series, as will all expenses, costs, charges and reserves attributable to that
Series, and any general liabilities, expenses, costs, charges or reserves of the Trust which are not
readily identifiable as belonging to any particular Series shall be allocated and charged by the Trustees
to and among anyone or more of the Series established and designated from time to time in such
manner and on such basis as the Truste es in their sole discretion deem fair and equitable. Each
allocation of liabilities, expenses, costs, charges and reserves by the Trustees shall be conclusive and
binding upon the Participants in all Series for all purposes.
(d) All dividends and distributions on Shares of a particular Series shall be distributed pro rata
to the holders of that Series in proportion to the number of Shares of that Series held by such holders
at the date and time of record established in the By-Laws for the payment of such dividends or
distributions.
(e) In the event of the liquidation of a particular Series, the Participants in that Series which is
being liquidated shall be entitled to receive, when and as declared by the Trustees, the excess of the
assets belonging to that Series over the liabilities belonging to that Series. The holders of Shares of
any Series shall not be entitled thereby to any distribution upon liquidation of any other Series. The
assets so distributable to the Participants in any Series shall be distributed among such Participants in
proportion to the number of Shares of that Series held by them and recorded on the books of the Trust.
The liquidation of any particular Series in which there are Shares then outstanding may be authorized
by an instrument in writing, without a meeting, signed by a majority of the Trustees then in office,
subject to the affirmative vote of a maj ority of the outstanding voting securities of that Series.
(t) The Trustees shall have the authority to provide that the holders of Shares of any Series
shall have the right to convert or exchange such Shares for or into Shares of one or more other Series
in accordance with such requirements and procedures as may be established by the Trustees.
(g) The Trustees shall have the power to determine the designations, preferences, privileges,
limitations and rights, including approval and dividend rights, of each Series of Shares. Subject to the
provisions of this Section 6.8., all Shares of all Series shall have identical rights and privileges, except
insofar as variations thereof among Series shall have been determined and fixed by the Trustees.
(h) The establishment and designation of any Series of Shares in addition to those established
and designated in Section 6.1. Hereof shall be effective upon the execution by a majority of the then
Trustees of an instrument setting forth such establishment and designation and the relative rights,
preferences, approval powers, restrictions, limitations as to dividends, qualifications, and terms and
conditions of redemption of such Series or as otherwise provided in such instrument. At any time that
there are no shares outstanding of any particular Series previously established and designated, the
Trustees may by an instrument executed by a majority of their number abolish that Series and the
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establishment and designation thereof. Each instrument referred to in this paragraph shall constitute an
amendment to this Declaration of Trust.
ARTICLE VII. REDEMPTIONS
Section 7.1. Redemptions. In case any Participant at any time desires to dispose of its
Shares, it may deposit a written request or other such form of request as the Trustees may from time to
time authorize, at the office of the transfer agent or at the office of any bank or trust company, either in
or outside of California which is a member of the Federal Reserve System and which the transfer
agent has designated in writing for that purpose, to have the Shares redeemed by the Trust at the net
asset value thereof per Share next determined after such deposit as provided in the By-Laws. Payment
for redemption shall be made to the Participant within the number of business days specified in the
Trust's current Information Statement, unless the date of payment is postponed pursuant to Section
7.2. hereof, in which event payment may be delayed beyond such period.
Section 7.2. Suspension of Right of Redemption. The Trustees may declare a suspension of
the right of redemption or postpone the date of payment or redemption for the whole or any part of any
period (i) during which the New York Stock Exchange is closed other than customary weekend and
holiday closings, (ii) during which trading on the New York Stock Exchange is restricted, or (iii)
during which an emergency exists as a result of which disposal by the Trust of securities owned by it
is not reasonably practicable or it is not reasonably practicable for the Trust fairly to determine the
value of its net assets. Such suspension shall take effect at such time as the Trustees shall specify but
not later than the close of business on the business day next following the declaration of suspension,
and thereafter there shall be no right of redemption or payment on redemption until the Trustees shall
declare the suspension at an end, except that the suspension shall terminate in any event on the first
day on which the New York Stock Exchange shall have reopened or the period specified in (ii) or (iii)
shall have expired (as to which the determination of the Trustees shall be conclusive). In the case of a
suspension ofthe right of redemption, a Participant may either withdraw its request for redemption or
receive payment based on the net asset value existing after the termination of the suspension.
Section 7.3. Redemptions to Reimburse Trust for Loss on Nonpayment for Shares or for
Other Charges. The Trustees shall have the power to redeem Shares owned by any Participant to the
extent necessary (i) to reimburse the Trust for any loss it has sustained by reason of the failure of such
Participant to make full payment for Shares purchased by such Participant, or (ii) to collect any charge
relating to a transaction effected for the benefit of such Participant which is applicable to Shares as
provided in the Information Statement. Any such redemption shall be effected at the redemption price
determined in accordance with Section 7.1. hereof.
Section 7.4. Redemptions Pursuant to Constant Net Asset Value Policy. The following
provisions shall apply to any Series of Shares of the Trust during any period that the
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Trustees, in their discretion, establish a policy of maintaining a constant net asset value per Share. If
for any reason the net income of the Trust attributable to such Series shall, at the time of any
determination thereof in accordance with Section 8.1. hereof, be a negative amount, then the Trustees
shall have power to cause the number of outstanding Shares of such Series to be reduced by requiring
each Participant to contribute to the capital of the Trust such Participant's proportionate part of the
total number of Shares of such Series which have an aggregate current net asset value equal as nearly
as may be practicable to the negative amount of the Trust's net income. Each Participant, by becoming
a registered holder of Shares, agrees to make any such contribution which may be required.
Section 7.5. Redemptions in Kind. Payment for Shares redeemed pursuant to Section 7.1.
may, at the option of the Trustees, or such officer or officers as they may duly authorize for the
purpose, in their complete discretion be made in cash, or in kind, or partially in cash and partially in
kind. In case of payment in kind, the Trustees, or their delegate, shall have absolute discretion as to
what security or securities shall be distributed in kind and the amount of the same, and the securities
shall be valued for purposes of distribution at the figure at which they were appraised in computing the
net asset value of the Shares.
Section 7.6. Minimum Investment. The Trustees shall have the power to fix the minimum
investment for Participants expressed in dollars or Shares, or both. Whenever a Participant's
investment is less than the minimum established by the Trustees, the Trustees may redeem the Shares
of such Participant, provided thirty days prior notice is given to such Participant. If the Trustees
change the minimum investment to an amount greater than the investment of any Participant at the
time that such change becomes effective, the investment of such Participant shall not be redeemed
without such Shareholder's consent.
ARTICLE VIII.
DETERMINATION OF NET ASSET VALUE, NET INCOME AND DISTRIBUTIONS
Section 8.1. By-Laws to Govern Net Asset, Net Income and Distribution Procedures.
The Trustees, in their absolute discretion, may prescribe and shall set forth in the By-Laws such bases
and times for determining the per Share net asset value of the Shares, the net income of the Trust, and
the declaration and payment of distributions, as they may deem necessary or desirable.
ARTICLE IX. DURATION, TERMINATION AND AMENDMENT
Section 9.1. Duration. The Trust shall continue without limitation of time but subject to the
provisions of this Article IX.
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Section 9.2. Termination of Trust. (a) The Trust may be terminated by the vote of the
maj ority of the authorized Trustees, subject to approval by the approval of the holders of not less than
two-thirds of the Shares outstanding. Upon the termination of the Trust:
(i) The Trust shall carry on no activities except for the purpose of winding up its affairs;
(ii) The Trustees shall proceed to wind up the affairs of the Trust and all of the powers of the
Trustees under this Declaration of Trust shall continue until the affairs of the Trust shall have been
wound up, including the power to fulfill or discharge the contracts of the Trust, collect its assets, sell,
convey, assign, exchange, transfer or otherwise dispose of all or any part of the Trust property to one
or more persons at public or private sale for consideration which may consist in whole or in part of
cash, securities or other property of any kind, discharge or pay its liabilities, and do all other acts
appropriate to liquidate its business; provided that any sale, conveyance, assignment, exchange,
transfer or other disposition of all or substantially all the Trust property shall require approval in
accordance with Section 9.4. hereof; and
(iii) After paying or adequately providing for the payment of all liabilities, and upon receipt of
such releases, indemnities and refunding agreements as they deem necessary for their protection, the
Trustees may distribute the remaining Trust property, in cash or in kind or partly in cash and partly in
kind, among the Participants according to their respective beneficial interests.
(b) After termination of the Trust and distribution to the Participants as herein provided, a
majority of the Trustees shall execute and lodge among the records of the Trust an instrument in
writing setting forth the fact of such termination, and the Trustees shall thereupon be discharged from
all further liabilities and duties hereunder, and the rights and interests of all Participants shall
thereupon cease.
Section 9.3. Amendment Procedure. (a) This Declaration of Trust may be amended by the
vote of the Trustees, subject to approval of such amendment by a majority of the Shares outstanding
and by a majority of the Shares of any Series affected by such amendment. The Trustees may also
amend this Declaration of Trust without such Participant approval to change the name of the Trust or
any Series, to establish and designate additional Series, to supply any omission herein or to correct or
supplement any ambiguous, defective or inconsistent provision hereof, or if they deem it necessary, to
conform this Declaration of Trust to the requirements of applicable laws or regulations or to eliminate
or reduce any taxes which may be payable by the Trust or the Participants, but the Trustees shall not
be liable for failing to do so.
(b) No amendment may be made under this Section 9.3. which would change any rights with
respect to any Share by reducing the amount payable thereon upon liquidation of the Trust or by
diminishing or eliminating any approval rights pertaining thereto, except with the vote of a majority of
the authorized Trustees and the approval of the holders of two-thirds of the Shares outstanding and
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the holders of two-thirds of the Shares of any Series affected by such amendment. Nothing in this
Declaration of Trust shall permit its amendment to impair the exemption from personal liability of the
participants, Trustees, officers, employees and agents of the Trust or to permit assessments upon
Participants.
(c) A certificate signed by a majority of the Trustees setting forth an amendment and reciting
that it was duly adopted by the Trustees and/or by the Participants or a copy of the Declaration of
Trust as amended, and executed by a majority of the Trustees, shall be conclusive evidence of such
amendment when lodged among the records of the Trust.
Section 9.4. Merger, Consolidation and Sale of Assets. To the extent permitted by law, the
Trust may merge into or consolidate with any other corporation, association, trust or other
organization or may sell, lease or exchange all or substantially all of the Trust property, including its
good will, upon such terms and conditions and for such consideration when and as authorized by vote
of a majority of the authorized Trustees and approved by the holders of two-thirds of the Shares
outstanding and by the holders of two-thirds of the Shares of any Series affected.
ARTICLE X. MISCELLANEOUS
Section 10.1. Governing Law. This Declaration of Trust is executed by the Initial
Participants and delivered in the State of California and with reference to the laws thereof, and the
rights of all parties and the validity and construction of every provision hereof shall be subject to and
consented according to the laws of the State of California.
\., Section 10.2. Counterparts. This Declaration of Trust may be simultaneously executed in
several counterparts, each of which shall be deemed to be an original, and such counterparts, together,
shall be constituted one and the same instrument, which shall be sufficiently evidenced by any such
original counterpart.
Section 10.3. Adoption by California Public Agencies. A Public Agency of the State of
California may become a Participant of this Trust by taking appropriate action to adopt this
Declaration of Trust, furnishing the Trust with satisfactory evidence that such action has been taken,
and signing a counterpart of this Declaration of Trust. A copy of this Declaration of Trust may be
adopted through incorporation by reference into an ordinance or resolution of such Public Agency, and
a certified copy of such ordinance or resolution shall constitute satisfactory evidence of adoption
contemplated by this Section.
Section 10.4. Certificates. Any certificate executed by an individual who, according to the
records of the Trust, appears to be a Trustee hereunder, or Secretary or Assistant Secretary of
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the Trust, certifying to: (a) the number or identity of Trustees or Participants, (b) the due authorization
of the execution of any instrument or writing, (c) the form of any vote passed at a meeting of Trustees,
(d) the number of Trustees present or voting at any meeting, (e) the form of any By-Laws adopted by
or the identity of any officers elected by the Trustees, or (f) the existence of any fact or facts which in
any manner relate to the affairs of the Trust, shall be conclusive evidence as to the matters so certified
in favor of any person dealing with the Trustees and their successors.
Section 10.5. Provisions in Conflict with Law or Regulations. (a) The provisions of this
Declaration of Trust are severable, and if the Trustees shall determine, with the advice of counsel, that
any of such provisions is in conflict with applicable laws and regulations, the conflicting provisions
shall be deemed superseded by such laws or regulations to the extent necessary to eliminate such
conflict; provided, however, that such determination shall not affect any of the remaining provisions of
this Declaration of Trust or render invalid or improper any action taken or omitted prior to such
determination.
(b) If any provision of this Declaration of Trust shall be held invalid or unenforceable in any
jurisdiction, such invalidity or unenforceability shall pertain only to such provision in such jurisdiction
and shall not in any manner affect such provision in any other jurisdiction or any other provision of
this Declaration of Trust in any jurisdiction.
Section 10.6. Index and Headings for Reference Only. The index and headings preceding
the text, articles and sections hereof have been inserted for convenience and reference only and shall
not be construed to affect the meaning, construction or effect of this Declaration of Trust.
Section 10.7. Successors in Interest. This Declaration of Trust and the Bylaws shall be
binding upon and inure to the benefit of the undersigned Initial Participants and their successors,
assigns, heirs, distributees and legal representatives, and every Participant and its successors, assigns,
heirs, distributees and legal representatives.
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IN WITNESS WHEREOF, the undersigned have executed this Declaration of Trust as of the
date frrst herein above set forth.
MONTEREY PENINSULA WATER
MANAGEMENT DISTRICT
PLACER COUNTY
By: /s/ Dick Heuer
By: /s/ Alex Ferreira
Name: Dick Heuer
Name: Alex Ferreira
Title: Chairman
Title: Chairman, Board of Supervisors
The undersigned Public Agency hereby represents that the governing body of the undersigned
has duly adopted by appropriate action the Declaration of Trust of the California Asset Management
Trust (the "Trust") dated as of December 15,1989, and amended as of November 25,1996; hereby
executes such Declaration of Trust and, by such execution, hereby becomes a party to and Participant
of the Trust and agrees to be bound by all the provisions of the Declaration of Trust.
Date:;:::J ~ / 7 .:.2 0 cj 3
By:
Name:
Title: ~v"r~ )-J~S Id~
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f... '1 f;:'l~~q:.{.\ r )
diJ' :{y1LJ
CALIFORNIA ASSET
MANAGEMENT PROGRAM
A PUBLIC JOINT POWERS AUTHORITY
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505 MONTGOMERY STREET
SUITE 800
SAN FRANCISCO
CALIFORNIA 94111
PHONE 800 729-7665
FAX415882-4513
smCalifomia Asset Management Program is a Service Mark of the California Asset Management Trust