California Debt and Investment Advisory Commission

Draw on Reserve or Default Report

San Diego CFD No 2 Mello-Roos Community Facilities Districts

This report is based on unaudited information reported to the California Debt and Investment Advisory Commission pursuant to Government Code Section 53359.5(c) from sources considered to be reliable. The Commission is not liable for inadvertent errors or omissions that are reported as part of these reports.

Issuer:  San Diego CFD No 2
County:  San Diego
Project:  Multiple Capital Improvements, Santaluz IA No 1
Original Sale Date:  10/18/2000
CDIAC Number:  2000-0492
Type of Event:  Default
Date of Event:  9/4/2007
Amount of Default:  
Contact:  Jay M. Goldstone
Phone Number:  (619) 235-5835

Comments:  
A 45-day delay occurred in the mandatory sinking fund redemption of $405,000 in principal for the Special Tax Bonds, Series A. The City of San Diego provided in a timely manner sufficient funds to the Trustee prior to the redemption date. However, the Trustee failed to make the Special Tax Bonds – assigned CISIP number 802808BE4 – redemption on September 4, 2007 in accordance with the requirement of the Indenture between the District and the Trustee relating to the CFD No 2.

The Trustee issued on October 16, 2007 a Notice of Redemption for $405,000 in bonds assigned CUSIP number 802808BE4 and the actual redemption of these bonds occurred on October 19, 2007. The Trustee’s Notice of Redemption provides that accrued interest on the $405,000 will be paid from September 2, 2007 through October 18, 2007 and included with the principal redemption payment.

Date Received:   11/2/2007
Date posted to this website:   Friday, November 09, 2007