      .                  .    .               .                             

                                                        .                                              .               .  .                                    .       .         . .

 .           .             . .          .                                .                  .  .             .    .           . . .     .    .    .                 .    .                        .              .      .                           .                    .               .                      .                                                                                                                                                                                                                                           .             .        .       

    .        .  .   .        . .                     . .       .          .     .

  .          

    .             

 

   

.                                                                                                           

           

           

           

   

.                                                                  

                .     .                      .  .         . .   .             

This Official Statement does not constitute an offer to sell the Bonds in any jurisdiction in which or to any person to whom it is unlawful to make such an offer. No dealer, salesperson or other person has been authorized by the California Educational Facilities Authority (the “Authority”), Occidental College (the “College”), or Wells Fargo Bank, National Association (the “Underwriter”), to give any information or to make any representations, other than those contained herein, in connection with the offering of the Bonds and, if given or made, such information or representations must not be relied upon.

The information relating to the Authority set forth herein under the captions “THE AUTHORITY” and “ABSENCE OF MATERIAL LITIGATION—The Authority” has been furnished by the Authority. The Authority does not warrant the accuracy of the statements contained herein relating to the College, nor does it directly or indirectly guarantee, endorse or warrant (1) the creditworthiness or credit standing of the College, (2) the sufficiency of the security for the Bonds or (3) the value or investment quality of the Bonds. The Authority makes no representations or warranties whatsoever with respect to any information contained herein except for the information under the captions “THE AUTHORITY” and “ABSENCE OF MATERIAL LITIGATION—The Authority.”

Certain statements included or incorporated by reference in this Official Statement constitute “forward-looking statements.” Such statements are generally identifiable by the terminology used such as “plan,” “expect,” “estimate,” “anticipate,” “budget” or other similar words. The achievement of results or other expectations contained in such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements described to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Neither the Authority nor the College plans to issue any updates or revisions to those forward-looking statements if or when its expectations, or events, conditions or circumstances on which such statements are based occur.

Estimates and opinions are included and should not be interpreted as statements of fact. Summaries of documents do not purport to be complete statements of their provisions. The information and expressions of opinion herein are subject to change without notice, and neither the delivery of this Official Statement nor any sale made hereunder will, under any circumstances, create any implication that there has been no change in the affairs of the Authority or the College since the date hereof.

The Underwriter has provided the following sentence for inclusion in this Official Statement. The Underwriter has reviewed the information in this Official Statement in accordance with, and as part of, its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information.

In connection with this offering, the Underwriter may overallot or effect transactions that stabilize or maintain the market price of the Bonds at levels above those which might otherwise prevail in the open market. Such stabilizing, if commenced, may be discontinued at any time.

References to web site addresses presented herein are for informational purposes only and may be in the form of a hyperlink solely for the reader’s convenience. Unless specified otherwise, such web sites and the information or links contained therein are not incorporated into, and are not part of, this Official Statement for purposes of, and as that term is defined in, SEC rule 15c2-12.

    

TABLE OF CONTENTS

Page

INTRODUCTION ...... 1

GENERAL ...... 1 PLAN OF FINANCE ...... 1 THE BONDS ...... 1 REDEMPTION ...... 2 SECURITY AND SOURCES OF PAYMENT OF THE BONDS ...... 2 BOOK-ENTRY ONLY SYSTEM ...... 2 THE COLLEGE ...... 3 FINANCIAL CONDITION OF THE COLLEGE ...... 3 COVENANTS OF THE COLLEGE ...... 3 OUTSTANDING LONG-TERM INDEBTEDNESS ...... 3 CONTINUING DISCLOSURE ...... 3 CERTAIN INFORMATION RELATED TO THIS OFFICIAL STATEMENT ...... 4 PLAN OF FINANCE ...... 4

PROJECT AND PRIOR PROJECT ...... 4 PLAN OF REFUNDING...... 5 ESTIMATED SOURCES AND USES OF FUNDS ...... 6

DEBT SERVICE SCHEDULE ...... 7

THE BONDS ...... 8

GENERAL ...... 8 REDEMPTION ...... 8 REDEMPTION PROCEDURES ...... 9 SECURITY AND SOURCES OF PAYMENT FOR THE BONDS ...... 11

GENERAL ...... 11 LIMITED OBLIGATION OF AUTHORITY ...... 12 PAYMENTS UNDER THE LOAN AGREEMENT ...... 12 INSURANCE ...... 12 INVESTMENT CONSIDERATIONS ...... 13

GENERAL ...... 13 GENERAL FACTORS AFFECTING THE COLLEGE ...... 13 COLLEGE INDEBTEDNESS ...... 14 INSURANCE COVERAGE ...... 14 SEISMIC CONDITIONS ...... 14 INVESTMENT OF FUNDS RISK ...... 14 GIFTS AND FUNDRAISING ...... 15 TAX-EXEMPT STATUS ...... 15 POTENTIALLY ADVERSE TAX LEGISLATION ...... 16 BANKRUPTCY AND LIMITATIONS ON ENFORCEMENT OF REMEDIES ...... 16 THE AUTHORITY ...... 17

GENERAL ...... 17 ORGANIZATION AND MEMBERSHIP OF THE AUTHORITY ...... 17 OUTSTANDING INDEBTEDNESS OF THE AUTHORITY ...... 17 LEGALITY FOR INVESTMENT IN CALIFORNIA ...... 17

i

TAX MATTERS ...... 18

2013A BONDS ...... 18 2013B BONDS ...... 20 APPROVAL OF LEGAL PROCEEDINGS ...... 23

ABSENCE OF MATERIAL LITIGATION ...... 23

THE AUTHORITY ...... 23 THE COLLEGE ...... 23 UNDERWRITING ...... 23

CONTINUING DISCLOSURE ...... 24

RATING ...... 24

VERIFICATION ...... 24

FINANCIAL ADVISOR ...... 25

FINANCIAL STATEMENTS ...... 25

MISCELLANEOUS ...... 25

APPENDIX A – INFORMATION CONCERNING OCCIDENTAL COLLEGE ...... A-1 APPENDIX B – AUDITED FINANCIAL STATEMENTS OF THE COLLEGE ...... B-1 APPENDIX C – BOOK-ENTRY ONLY SYSTEM ...... C-1 APPENDIX D – SUMMARY OF CERTAIN PROVISIONS OF THE PRINCIPAL LEGAL DOCUMENTS ...... D-1 APPENDIX E – PROPOSED FORM OF OPINION OF BOND COUNSEL ...... E-1 APPENDIX F – FORM OF CONTINUING DISCLOSURE AGREEMENT ...... F-1

ii

$54,995,000 CALIFORNIA EDUCATIONAL FACILITIES AUTHORITY REVENUE BONDS (OCCIDENTAL COLLEGE) SERIES 2013

$48,625,000 $6,370,000 Series 2013A (Tax-Exempt) Series 2013B (Taxable)

INTRODUCTION

This Introduction contains only a brief summary of certain of the terms of the Bonds being offered and a full review should be made of the entire Official Statement, including the cover page and the appendices in order to make an informed investment decision. All statements contained in this Introduction are qualified in their entirety by reference to the entire Official Statement. References to, and summaries of, provisions of the Constitution and laws of the State of California (the “State”) or any documents referred to herein do not purport to be complete and such references are qualified in their entirety to the complete provisions thereof.

General

This Official Statement, including the cover page and appendices hereto (this “Official Statement”), provides certain information in connection with the offering of the $48,625,000 California Educational Facilities Authority Revenue Bonds (Occidental College) Series 2013A (Tax-Exempt) (the “2013A Bonds”) and the $6,370,000 California Educational Facilities Authority Revenue Bonds (Occidental College) Series 2013B (Taxable) (the “2013B Bonds” and together with the 2013A Bonds, the “Bonds”).

The Bonds will be issued pursuant to the provisions of the California Educational Facilities Authority Act, constituting Chapter 2 (commencing with Section 94100) of Part 59 of Division 10 of Title 3 of the Education Code of the State, as amended (the “Act”), and the Indenture (defined below). All capitalized terms used in this Official Statement and not otherwise defined herein have the same meanings as in the Indenture. See APPENDIX D – “SUMMARY OF CERTAIN PROVISIONS OF THE PRINCIPAL LEGAL DOCUMENTS – Definitions” for definitions of certain words and terms used but not otherwise defined herein.

The Bonds will be issued pursuant to and will be secured by an Indenture, dated as of June 1, 2013 (the “Indenture”), between the Authority and U.S. Bank National Association, as trustee (the “Trustee”). The Authority will lend the proceeds of the Bonds to Occidental College (the “College”) pursuant to a Loan Agreement, dated as of June 1, 2013 (the “Loan Agreement”), between the Authority and the College.

Plan of Finance

The Authority will lend the proceeds of the Bonds to the College to (i) refund a portion of the outstanding Authority’s Revenue Bonds (Occidental College), Series 2005A (the “Prior Bonds”), (ii) acquire and construct projects as more particularly described under herein, and (iii) pay costs of issuance for the Bonds. See “PLAN OF FINANCE” and “ESTIMATED SOURCES AND USES OF FUNDS” herein.

The Bonds

The Bonds will bear interest from the date of their initial delivery at the interest rates as set forth on the inside cover page hereof, and will be payable on each April 1 and October 1, commencing October 1, 2013. The Bonds will be issued in authorized denominations of $5,000 or any integral multiple thereof.

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Redemption

The Bonds are subject to redemption prior to maturity as described herein. While the Indenture provides for the Trustee to give notice of the redemption of Bonds, the failure of a Bondholder to receive such notice, or the insufficiency of any such notice, will not affect the validity of the proceedings for redemption, and if moneys are available on the redemption date to pay the redemption price, interest on the Bonds to be redeemed will cease to accrue from and after the date of redemption. See “THE BONDS – Redemption” and “– Redemption Procedures” herein.

Security and Sources of Payment of the Bonds

The Bonds will be payable solely from the Revenues received by the Authority or the Trustee from the College. “Revenues” means all payments received by the Authority or the Trustee from the College pursuant to the Loan Agreement (except Additional Payments, as defined in the Indenture, and certain other payments described in the Loan Agreement), including, without limiting the generality of the foregoing, Base Loan Payments (including both timely and delinquent payments), prepayments and all income derived from the investment of any moneys in any fund or account established pursuant to the Indenture, but not including amounts, including investment income, received for or on deposit in the Rebate Fund. The obligation of the College to make Base Loan Payments under the Loan Agreement is an unsecured general obligation of the College. The Loan Agreement contains certain covenants for the protection of the Bondholders and the Authority. The Bonds are not secured by a reserve fund, or a lien on, or security interests in, any funds, revenues or other assets of the College, except for certain funds and accounts held from time to time by the Trustee for the benefit of the Bondholders under the Indenture.

The Indenture provides that revenues received by the Trustee are to be held in trust and are exclusively and irrevocably pledged for the security and payment of the principal of and interest on the Bonds.

See “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS” and APPENDIX D – “SUMMARY OF CERTAIN PROVISIONS OF THE PRINCIPAL LEGAL DOCUMENTS” herein.

The Bonds shall not be deemed to constitute a debt or liability of the State of California or of any political subdivision thereof other than the Authority or a pledge of the faith and credit of the State of California or of any political subdivision thereof, but shall be payable solely from the funds therefor provided. Neither the State of California nor the Authority shall be obligated to pay the principal of the Bonds or the premium, if any, or the interest thereon except from Revenues and the other assets pledged under the Indenture and neither the faith and credit nor the taxing power of the State of California or of any political subdivision thereof is pledged to the payment of the principal of or the premium, if any, or the interest on the Bonds. The issuance of the Bonds shall not directly or indirectly or contingently obligate the State of California or any political subdivision thereof to levy or to pledge any form of taxation whatever therefor or to make any appropriation for their payment. The Authority has no taxing power.

Book-Entry Only System

When delivered, the Bonds will be registered in the name of Cede & Co., as nominee of The Depository Trust Company (“DTC”) which will act as securities depository for the Bonds. Purchases 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 certificated securities. Principal of and interest on the Bonds will be payable by the Trustee to DTC, which will in turn remit such payments to the DTC Participants, which will in turn remit such payments to the Beneficial Owners of the Bonds. In addition, so long as Cede & Co. is the registered owner of the Bonds, the selection of Bonds held by Beneficial Owners in book-entry form for redemption will be made pursuant to the procedures of DTC. See “THE BONDS – Redemption” and APPENDIX C – “BOOK-ENTRY ONLY SYSTEM.”

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The College

The College is a non-profit, privately endowed, national, highly selective coeducational college of liberal arts and sciences. Enrollment for the fall term of the 2012-13 academic year is 2,170 “full time equivalent students,” all but two of whom are undergraduate students. See APPENDIX A – “INFORMATION CONCERNING OCCIDENTAL COLLEGE” for a description of the College.

Financial Condition of the College

For the fiscal year ended June 30, 2012, the College had total operating revenues of approximately $105.96 million and total operating expenses of approximately $100.81 million. At June 30, 2012, the aggregate of all College net assets was approximately $462.48 million. In addition, important information on the financial condition of the College is set forth in APPENDIX A – “INFORMATION CONCERNING OCCIDENTAL COLLEGE” and in the College's financial statements and notes thereto set forth in APPENDIX B, all of which should be carefully reviewed.

Covenants of the College

The College has agreed to certain covenants for the protection of the Bondholders, including certain covenants not to encumber any of its Facilities except for Permitted Encumbrances, to maintain its accredited status, and not to take any action that would impair the tax-exempt status of interest on the Bonds. These and other covenants of the College are discussed further in APPENDIX D – “SUMMARY OF CERTAIN PROVISIONS OF THE PRINCIPAL LEGAL DOCUMENTS – Loan Agreement.”

Outstanding Long-Term Indebtedness

The College has certain outstanding long-term indebtedness as summarized below:

California Educational Facilities Authority Revenue Bonds (Occidental College) Series 2005A (the “2005A Bonds”), currently outstanding in the principal amount of $50,055,000 ($44,435,000 of the principal amount of the 2005A Bonds will be refunded with a portion of the proceeds of the Bonds);

California Educational Facilities Authority Revenue Bonds (Occidental College) Series 2005B (the “2005B Bonds” and together with the 2005A Bonds, the “2005 Bonds”), currently outstanding in the principal amount of $12,705,000; and

California Educational Facilities Authority Revenue Bonds (Occidental College) Series 2008 (the “2008 Bonds”), currently outstanding in the principal amount of $18,950,000;

See APPENDIX A – “INFORMATION CONCERNING OCCIDENTAL COLLEGE – Debt” attached hereto for more information.

The College is not prohibited by the Indenture or the Loan Agreement from incurring additional indebtedness in the future. See “INVESTMENT CONSIDERATIONS – College Indebtedness” herein.

Continuing Disclosure

For purposes of Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission under the Securities Act of 1934, as amended (the “Rule”), so long as the Bonds are Outstanding or are otherwise subject to the Rule, the College will covenant for the benefit of the Bondholders to provide (i) certain financial information and operating data relating to the College by no later than 180 days following the end of each fiscal year of the College (which fiscal year currently begins on July 1 of each year and ends on the next

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succeeding June 30), commencing with the report for the fiscal year ending June 30, 2013, and (ii) notice of the occurrence of certain enumerated events. See “CONTINUING DISCLOSURE” and APPENDIX F – “FORM OF CONTINUING DISCLOSURE AGREEMENT” herein.

Certain Information Related to this Official Statement

The descriptions herein of the Indenture, the Loan Agreement and other agreements relating to the Bonds are qualified in their entirety by reference to such documents and the description herein of the Bonds is qualified in its entirety by the form thereof and the information with respect thereto included in such documents. See APPENDIX D – “SUMMARY OF CERTAIN PROVISIONS OF THE PRINCIPAL LEGAL DOCUMENTS – The Indenture” for a brief summary of the rights and duties of the Authority, the respective rights and remedies of the Trustee and the Bondholders upon an event of default, provisions relating to amendments of the Indenture and procedures for defeasance of the Bonds and certain other provisions of the Indenture.

The information and expressions of opinion herein speak only as of their date and are subject to change without notice. Neither delivery of this Official Statement nor any sale made hereunder nor any future use of this Official Statement shall, under any circumstances, create any implication that there has been no change in the affairs of the Authority or the College.

PLAN OF FINANCE

The College plans to use the proceeds of the Bonds for the purpose of (a) financing the construction, renovation, rehabilitation, installation, expansion, furnishing and equipping of certain of the following educational facilities (the “New Money Project”), (b) refinancing a portion of the 2005A Bonds, the proceeds of which financed certain of the following educational facilities (the “Prior Project”) and (c) paying costs related to the sale and issuance of the Bonds.

Project and Prior Project

The facilities comprising the New Money Project and the Prior Project, except for the property located at 1480 Campus Road, are located or to be located on the main campus of the College, the address of which is 1600 Campus Road, Los Angeles, California, bounded by Campus Road on the south, north and west and by Avenue 51 on the east (the “Main Campus”).

The New Money Project is comprised of the following elements:

(a) renovation of the main library into an academic commons that will include library resources, group workplaces, academic support programs and electronic resource areas;

(b) renovation of the Norris Chemistry Building;

(c) replacement of the College’s chiller plant and thermal storage and cooling towers;

(d) upgrade of fire sprinkler systems, structural repairs, installation of air conditioning, and waterproofing for four student residence halls (Chillcott, E. Norris, Braun and Stewart-Cleland);

(e) renovation of the BioScience Building, including the Moore Laboratory of Zoology;

(f) renovation of the Weingart Hall for the Arts;

(g) repair of the HVAC system and asbestos abatement in the Arthur G. Coons Administrative Center; 4

(h) installation of a new lighting system and repair of the Remsen Bird Hillside Theater, an outdoor amphitheater; and

(i) related infrastructure improvements.

The portion of the Prior Project that was originally financed in 2005 was comprised of the acquisition, construction, installation, expansion, renovation, rehabilitation, furnishing and equipping of a residence hall, athletic facilities, parking facilities, academic buildings, administrative office buildings and related infrastructure improvements.

The portion of the Prior Project that was originally financed in 1997 was comprised of the following elements:

(a) construction and equipping of a split location chiller plant at the intersection of Campus Road and Baer Road and a second chiller plant located at the intersection of Armadale Road and Campus Road;

(b) construction and equipping of a new parking structure bounded by Campus Road and Armadale Drive;

(c) construction, expansion, rehabilitation, renovation, remodeling and equipping of Freeman Student Union, known as Johnson Student Center, located on Baer Road;

(d) expansion, rehabilitation, renovation, remodeling and equipping of Samuelson Pavilion located on Bird Road;

(e) expansion, rehabilitation, renovation, remodeling, equipping and infrastructure improvements of the Faculty Club located on Campus Road, the Coons Administration Building located on Bird Road, the central quad area on the Main Campus and property and structures located at 1480 Campus Road, adjacent to the Main Campus; and

(f) acquisition, construction, renovation, rehabilitation, equipping and infrastructure improvements of other educational facilities located on the Main Campus, including darkrooms, the Norris Chemistry Building, the Mosher building, Thorne Hall, Johnson Hall, the admissions building, Bell Young Hall, Fowler Hall, sidewalks and athletic facilities.

Plan of Refunding

A portion of the proceeds from the Bonds and certain other available moneys, together with interest to be earned thereon, will be used to defease and prepay a portion of the 2005A Bonds in the principal amount of $44,435,000 (the “Refunded Bonds”). Such moneys shall be deposited in an escrow fund (the “Escrow Fund”) to be held by U.S. Bank National Association, acting as escrow agent (the “Escrow Agent”) under the Escrow Agreement, dated the date of delivery of the Bonds (the “Escrow Agreement”), by and among the Authority, the College and the Escrow Agent. The amounts deposited in the Escrow Fund will enable the Escrow Agent to purchase federal securities, the interest on and principal of which will be sufficient to redeem the Refunded Bonds in full on the designated call date. See “VERIFICATION” herein. Such federal securities will be irrevocably pledged under the Escrow Agreement to the payment of the payments due with respect to the Refunded Bonds and will not be available to pay principal of and interest on the Bonds. Upon the deposit of such proceeds and said moneys into the Escrow Fund, the Refunded Bonds will no longer be deemed outstanding.

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ESTIMATED SOURCES AND USES OF FUNDS

The following table sets forth the estimated sources and uses of the proceeds of the Bonds.

Estimated Sources of Funds: 2013A Bonds 2013B Bonds Total Par Amount $48,625,000.00 $6,370,000.00 $54,995,000.00 Net Original Issue Premium 7,356,744.10 – 7,356,744.10 Total Sources $55,981,774.10 $6,370,000.00 $62,351,774.10

Estimated Uses of Funds: Project Fund $12,000,000.00 – $12,000,000.00 Escrow Fund for Refunded Bonds 43,454,069.29 6,301,513.98 49,755,583.27 Costs of Issuance(1) 527,674.81 68,486.02 596,160.83 Total Uses $55,981,744.10 $6,370,000.00 $62,351,744.10

(1) Includes Underwriter's discount and fees and expenses of the Authority, the Trustee, Bond Counsel, Underwriter's Counsel, College Counsel, the College's independent auditor, the financial advisor, rating agency fees, printing costs and other fees and expenses incurred in connection with the execution and delivery of the Bonds.

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DEBT SERVICE SCHEDULE

The following table shows the debt service schedule for the College's outstanding bonds upon the issuance of the Bonds:

Debt Service Fiscal Year on (ending Outstanding Principal on Interest on Principal on Interest on Total Debt June 30,) Bonds(1) 2013A Bonds 2013A Bonds 2013B Bonds 2013B Bonds Service

2013 $5,756,103 - - - - $5,756,103 2014 3,524,971 $315,000 $1,876,008 $140,000 $138,125 $5,994,104 2015 3,526,271 125,000 2,277,913 - 167,770 6,096,954 2016 3,529,971 310,000 2,272,013 - 167,770 6,279,754 2017 3,530,271 315,000 2,262,638 - 167,770 6,275,679 2018 3,525,940 330,000 2,252,963 - 167,770 6,276,673 2019 3,384,578 375,000 2,242,388 110,000 166,945 6,278,910 2020 2,861,828 385,000 2,227,138 645,000 160,476 6,279,441 2021 2,496,746 805,000 2,201,413 625,000 148,270 6,276,429 2022 2,504,087 840,000 2,168,513 630,000 134,620 6,277,219 2023 2,497,990 870,000 2,134,313 655,000 119,018 6,276,320 2024 2,503,915 895,000 2,106,844 670,000 101,458 6,277,216 2025 2,505,245 925,000 2,073,650 690,000 82,063 6,275,958 2026 2,499,075 980,000 2,026,025 710,000 60,530 6,275,630 2027 2,501,240 1,030,000 1,975,775 735,000 37,404 6,279,419 2028 2,498,830 1,070,000 1,933,975 760,000 12,730 6,275,535 2029 1,326,720 3,110,000 1,840,175 - - 6,276,895 2030 1,330,628 3,265,000 1,680,800 - - 6,276,428 2031 1,326,903 3,420,000 1,531,088 - - 6,277,990 2032 1,330,793 3,570,000 1,373,750 - - 6,274,543 2033 1,327,165 3,760,000 1,190,500 - - 6,277,665 2034 1,330,888 3,950,000 997,750 - - 6,278,638 2035 1,326,828 4,155,000 795,125 - - 6,276,953 2036 1,329,853 4,365,000 582,125 - - 6,276,978 2037 1,329,698 4,590,000 358,250 - - 6,277,948 2038 1,331,230 330,000 235,250 - - 1,896,480 2039 1,329,318 350,000 218,250 - - 1,897,568 2040 - 755,000 190,625 - - 945,625 2041 - 795,000 151,875 - - 946,875 2042 - 835,000 111,125 - - 946,125 2043 - 880,000 68,250 - - 948,250 2044 - 925,000 23,125 - - 948,125

(1) Debt service for fiscal year ending June 30, 2013 includes debt service on the Series 2005A, 2005B and 2008 Bonds prior to the defeasance of a portion of the 2005A Bonds. Debt service for fiscal years ending June 30, 2014 through June 30, 2044 includes debt service for the outstanding 2005 Bonds and 2008 Bonds after defeasance of a portion of the 2005A Bonds. See “PLAN OF FINANCE – Plan of Refunding” herein.

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THE BONDS

General

The Bonds will be issued and delivered pursuant to the Indenture. The Bonds will be dated as of their date of initial delivery and will be issued and will mature on the dates and in the principal amounts set forth on the inside cover page hereof. The Bonds will be issued in authorized denominations of $5,000 or any integral multiple thereof. The Bonds will be delivered in fully registered form, will be transferable and exchangeable as set forth in the Indenture and, when delivered, will be registered in the name of Cede & Co., as nominee of DTC. DTC will act as securities depository for the Bonds. Ownership interests in the Bonds may be purchased in book-entry form only, in authorized denominations. So long as the Bonds are registered in the name of Cede & Co., all payments with respect to principal of and interest on the Bonds will be made by the Trustee to DTC, which is obligated in turn to remit such payments to its Direct Participants for subsequent disbursement to the Beneficial Owners of the Bonds. See APPENDIX C – “BOOK-ENTRY ONLY SYSTEM.”

The Bonds will bear interest from the date of initial delivery, at the interest rates set forth on the inside cover page hereof, payable on each April 1 and October 1 of each year, commencing October 1, 2013 (each, an “Interest Payment Date”). Interest on the Bonds will be calculated on the basis of a 360-day year of twelve 30- day months, and is payable in arrears on each Interest Payment Date, upon maturity or upon prior redemption.

Redemption

The Bonds are subject to redemption prior to maturity as set forth below.

Optional Redemption of 2013A Bonds. The 2013A Bonds maturing on or prior to October 1, 2023 will not be subject to redemption prior to maturity. The 2013A Bonds maturing on or after October 1, 2024 will be subject to redemption prior to their respective stated maturities, at the option of the College, from lawfully available funds, as a whole or in part on any date on or after October 1, 2023, at a redemption price equal to 100% of the principal amount thereof, without premium, together with accrued interest to the date fixed for redemption.

Mandatory Sinking Fund Redemption of 2013A Bonds. The 2013A Bonds maturing on October 1, 2031 are subject to mandatory redemption, in part, by lot, on October 1 in each of the years and in the respective amounts set forth below, at a redemption price equal to the principal amount thereof to be redeemed, without premium, together with interest accrued thereon to the date fixed for redemption:

Redemption Date (October 1,) Sinking Fund Installment 2030 $1,430,000 2031† 3,570,000 ______† Maturity

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The 2013A Bonds maturing on October 1, 2036 are subject to mandatory redemption, in part, by lot, on October 1 in each of the years and in the respective amounts set forth below, at a redemption price equal to the principal amount thereof to be redeemed, without premium, together with interest accrued thereon to the date fixed for redemption:

Redemption Date (October 1,) Sinking Fund Installment 2033 $3,950,000 2034 4,155,000 2035 4,365,000 2036† 4,590,000 ______† Maturity The 2013A Bonds maturing on October 1, 2043 are subject to mandatory redemption, in part, by lot, on October 1 in each of the years and in the respective amounts set forth below, at a redemption price equal to the principal amount thereof to be redeemed, without premium, together with interest accrued thereon to the date fixed for redemption:

Redemption Date (October 1,) Sinking Fund Installment 2037 $330,000 2038 350,000 2039 755,000 2040 795,000 2041 835,000 2042 880,000 2043† 925,000 ______† Maturity

Optional Redemption of 2013B Bonds. The 2013B Bonds are subject to redemption prior to maturity by written direction of the College, in whole or in part, on any Business Day, in such order of maturity as directed by the College, at the Make-Whole Redemption Price. The “Make-Whole Redemption Price” is the greater of (i) 100% of the principal amount of the 2013B Bonds to be redeemed or (ii) the sum of the present value of the remaining scheduled payments of principal and interest to the maturity date of the 2013B Bonds to be redeemed, not including any portion of those payments of interest accrued and unpaid as of the date on which the 2013B Bonds are to be redeemed, discounted to the date on which the 2013B Bonds are to be redeemed on a semi-annual basis, assuming a 360-day year consisting of twelve 30-day months, at the adjusted Treasury Rate (as defined below) plus 15 basis points, plus, in each case, accrued and unpaid interest on the 2013B Bonds to be redeemed on the redemption date. The “Treasury Rate” is, as of any redemption date, the yield to maturity as of such redemption date of United States Treasury securities with a constant maturity (as compiled and published in the most recent Federal Reserve Statistical Release H.15 (519) that has become publicly available at least two Business Days prior to the redemption date (excluding inflation indexed securities) (or, if such Statistical Release is no longer published, any publicly available source of similar market data)) most nearly equal to the period from the redemption date to the maturity date of the 2013B Bonds to be redeemed; provided, however, that if the period from the redemption date to such maturity date is less than one year, the weekly average yield on actually traded United States Treasury securities adjusted to a constant maturity of one year will be used.

Redemption Procedures

Notice of Redemption. Notice of redemption will be given to Bondholders by the Trustee by first class mail, postage prepaid, not less than 30 days or more than 60 days prior to the date fixed for redemption.

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Each notice of redemption must state the date of such notice, the redemption date, the redemption price (including any premium) (or if applicable, pursuant to the College's right to purchase Bonds called for optional redemption, the purchase price thereof), the place or places of redemption (including the name and appropriate address or addresses of the Trustee), the CUSIP number (if any) of the maturity or maturities, and, if less than all the Bonds of any maturity are to be redeemed, the distinctive certificate numbers of the Bonds of such maturity to be redeemed and, in the case of Bonds to be redeemed in part only, the respective portions of the principal amount thereof to be redeemed. Each such notice must also state that on said date there will become due and payable on each of said Bonds the redemption price thereof or of said specified portion of the principal amount thereof in the case of a Bond to be redeemed in part only (or if applicable, pursuant to the College's right to purchase Bonds called for optional redemption, the purchase price thereof), together with interest accrued thereon to the redemption date, and that from and after such redemption date interest thereon will cease to accrue, and will require that such Bonds be then surrendered at the address or addresses of the Trustee specified in the redemption notice. Notwithstanding the foregoing, failure by the Trustee to give notice pursuant to this paragraph to the Municipal Securities Rulemaking Board or the insufficiency of any such notices will not affect the sufficiency of the proceedings for redemption. Failure of any Holder of any Bond designated for redemption to receive the notices required by this paragraph, or any defect in any notice so mailed, will not affect the validity of the proceedings for redemption of any Bonds. Failure to mail the notices required by this paragraph to any Holder of any Bonds designated for redemption shall not affect the validity of the proceedings for redemption of any other Bonds.

Notwithstanding the foregoing, with respect to any notice of redemption of the Bonds from the prepayment of Base Loan Payments by the College pursuant the Loan Agreement, unless upon the giving of such notice such Bonds are deemed to have been defeased within the meaning of the Indenture, such notice must state that the redemption will be conditional upon the receipt by the Trustee on or prior to the date fixed for such redemption of amounts sufficient to pay the principal of, and premium, if any, and interest on, the Bonds to be redeemed, and that if such amounts are not received said notice will be of no force and effect, the Bonds will not be subject to redemption on such date and the Bonds will not be required to be redeemed on such date. In the event that such notice of redemption contains such a condition and amounts are not so received, the redemption will not be made and the Trustee will, within a reasonable time thereafter, give notice to the persons and in the manner in which the notice of redemption was given, that such condition or conditions were not met and that the redemption was cancelled.

If upon the expiration of 60 days succeeding any date fixed for redemption, any Bonds called for redemption are not presented to the Trustee for payment, the Trustee will, no later than 90 days following such date fixed for redemption, send notice by mail to the Holder of each Bond not so presented. Failure to mail such notice to any Holder, or any defect in any notice so mailed, will not affect the validity of the proceedings for redemption of any Bonds nor impose any liability on the Trustee.

Selection of Bonds for Redemption. Whenever provision is made in the Indenture for the redemption of less than all of the 2013A Bonds, the Trustee will select the 2013A Bonds to be redeemed, from the outstanding 2013A Bonds not previously called for redemption, by lot within a maturity and, if from more than one maturity, in inverse order of maturity or in such other order of maturity as specified by the College.

Whenever provision is made in the Indenture for the redemption of less than all of the 2013B Bonds, the Trustee will select the 2013B Bonds to be redeemed, from the outstanding 2013B Bonds not previously called for redemption, if within a maturity, on a pro rata basis to each Holder in whose name such 2013B Bonds are registered at the close of business on the fifteenth day of the calendar month immediately preceding the redemption date, and, if from more than one maturity, in inverse order of maturity or in such other order of maturity as specified by the College. “Pro rata” means, with respect to the allocation of amounts to be redeemed, the application to such amounts of a fraction, the numerator of which is equal to the amount of the 2013B Bonds held by a Holder of such 2013B Bonds, and the denominator of which is equal to the total amount of the 2013B Bonds then outstanding.

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Notwithstanding anything herein to the contrary, so long as Cede & Co. as the nominee of DTC or any substitute Securities Depository for the Bonds is the registered owner of the Bonds, the selection of Bonds held by Beneficial Owners in book-entry form for redemption will be made by DTC or such substitute Securities Depository for the Bonds pursuant to the procedures of DTC or the substitute Securities Depository for the Bonds. The procedures of DTC or the Substitute Depository for the Bonds may not be consistent with the procedures outlined above. See “INTRODUCTION – Book-Entry Only System” and APPENDIX C – “BOOK-ENTRY ONLY SYSTEM.”

Partial Redemption of Bonds. Upon surrender of any Bond redeemed in part only, the Trustee will exchange the Bond redeemed for a new Bond of like tenor without charge to the Bondholder in the principal amount of the portion of the Bond not redeemed. In the event of any partial redemption of a Bond which is registered in the name of Cede & Co., DTC may elect to make a notation on the Bond certificate which reflects the date and amount of the reduction in principal amount of said Bond in lieu of surrendering the Bond certificate to the Trustee for exchange. The Authority and the Trustee will be fully released and discharged from all liability upon, and to the extent of, payment of the redemption price for any partial redemption and upon the taking of all other actions required hereunder in connection with such redemption.

Effect of Redemption. If notice of redemption is given pursuant to the Indenture and moneys for payment of the redemption price of, together with interest accrued to the redemption date on, the Bonds (or portions thereof) so called for redemption are being held by the Trustee, on the redemption date designated in such notice, the Bonds (or portions thereof) so called for redemption will become due and payable at the redemption price specified in such notice and interest accrued thereon to the redemption date, interest on the Bonds so called for redemption will cease to accrue from and after the redemption date, said Bonds (or portions thereof) will cease to be entitled to any benefit or security under the Indenture, and the Holders of said Bonds will have no rights in respect thereof except to receive payment of said redemption price and accrued interest to the redemption date.

Purchase in Lieu of Redemption. The Bonds called for optional redemption pursuant to the Indenture are subject to purchase by the College in accordance with the Loan Agreement at a purchase price equal to the redemption price therefor. If the Trustee receives a Request of the College and the purchase price of the Bonds to be purchased in accordance with the Loan Agreement, the Trustee will not redeem such Bonds but will: (i) pay the purchase price of such Bonds to the Holders surrendering such Bonds for redemption; and (ii) deliver such Bonds to the College pursuant to the Book-Entry System for the Bonds then in effect or, if no Book-Entry System is in effect for the Bonds, deliver such Bonds to the College.

SECURITY AND SOURCES OF PAYMENT FOR THE BONDS

General

The Authority is obligated to pay the principal of, premium, if any, and interest on the Bonds solely from the Revenues received from the College under the Loan Agreement and the other funds available therefor under the Indenture. Pursuant to the Indenture, the Authority has pledged to the Trustee for the benefit of the Bondholders all the Revenues. “Revenues” means all payments received by the Authority or the Trustee from the College pursuant to or with respect to the Loan Agreement (except Additional Payments, as defined in the Indenture, and certain other payments described in the Agreement), including, without limiting the generality of the foregoing, Base Loan Payments (including both timely and delinquent payments), prepayments and all income derived from the investment of any moneys in any fund or account established pursuant to the Indenture, but not including amounts, including investment income, received for or on deposit in the Rebate Fund. There will be no reserve fund with respect to the Bonds.

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Under the Loan Agreement, the obligation of the College to make payments thereunder, including Base Loan Payments, is a general, unsecured obligation of the College. The Base Loan Payments are due in amounts and at the times necessary to pay the principal of and interest on the Bonds when due.

The College's payment obligations under the Loan Agreement are not secured by a security interest in any revenues or assets of the College. Accordingly, the Trustee, acting on behalf of Bondholders, would be an unsecured creditor in any bankruptcy or insolvency proceeding involving the College. In addition, the legal right and practical ability of the Trustee to enforce its rights and remedies against the College under the Loan Agreement could be limited by laws relating to bankruptcy, insolvency, reorganization, fraudulent conveyance or moratorium and by other similar laws affecting creditors' rights. See “INVESTMENT CONSIDERATIONS – Bankruptcy and Limitations on Enforcement of Remedies.”

See APPENDIX D – “SUMMARY OF CERTAIN PROVISIONS OF THE PRINCIPAL LEGAL DOCUMENTS” for a summary of certain terms of the Indenture and the Loan Agreement.

Limited Obligation of Authority

The Bonds shall not be deemed to constitute a debt or liability of the State of California or of any political subdivision thereof other than the Authority or a pledge of the faith and credit of the State of California or of any political subdivision thereof, but shall be payable solely from the funds therefor provided. Neither the State of California nor the Authority shall be obligated to pay the principal of the Bonds or the premium, if any, or the interest thereon except from Revenues and the other assets pledged under the Indenture and neither the faith and credit nor the taxing power of the State of California or of any political subdivision thereof is pledged to the payment of the principal of or the premium, if any, or the interest on the Bonds. The issuance of the Bonds shall not directly or indirectly or contingently obligate the State of California or any political subdivision thereof to levy or to pledge any form of taxation whatever therefor or to make any appropriation for their payment. The Authority has no taxing power.

Payments Under the Loan Agreement

Under the Loan Agreement, the College agrees to make the Base Loan Payments and certain Additional Payments (generally consisting of ongoing costs and expenses of the Authority and the Trustee associated with the Bonds). The Loan Agreement provides that these payment obligations are absolute and unconditional general obligations of the College and are not secured by any revenues or assets of the College. The Loan Agreement does not contain financial covenants prohibiting the College from incurring additional indebtedness, or any covenants requiring the College to produce revenues at any specified level. See APPENDIX A – “INFORMATION CONCERNING OCCIDENTAL COLLEGE,” APPENDIX B – “AUDITED FINANCIAL STATEMENTS OF THE COLLEGE” and APPENDIX D – “SUMMARY OF CERTAIN PROVISIONS OF THE PRINCIPAL LEGAL DOCUMENTS” herein.

Insurance

So long as any Bonds remain outstanding, the College will maintain or cause to be maintained with respect to its Facilities (including the Project), with reputable insurance companies or by means of self- insurance, insurance of such type, against such risks and in such amounts as are customarily carried by private colleges and universities located in California of a nature similar to that of the College, which insurance includes property damage, fire and extended coverage, public liability and property damage liability insurance. See “INVESTMENT CONSIDERATIONS – Insurance Coverage.”

For a summary of certain other provisions under the Loan Agreement, see APPENDIX D – “SUMMARY OF PRINCIPAL LEGAL DOCUMENTS” hereto.

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INVESTMENT CONSIDERATIONS

The following are investment considerations that should be carefully considered by prospective purchasers of the Bonds. The following list should not be considered to be exhaustive and has been prepared within the context of this Official Statement. Inclusion of certain investment considerations below is not intended to signify that there are not other investment considerations or risks attendant to the Bonds that are material to an investment decision with respect to the Bonds that are otherwise described or apparent elsewhere herein.

General

As noted under “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS” herein, the Bonds are generally payable from Base Loan Payments made by the College. Future economic and other conditions, including the College's revenue and expenses, the College's fundraising plans, a shortfall in the amounts expected to be received by the College through fundraising efforts, litigation, investment returns, changes in the demand for the College's services or its reputation, demographic changes, legislation, governmental regulations or catastrophic or other events damaging or delaying the Project or existing Facilities at the College could adversely affect the College's ability to pay the Base Loan Payments. In addition, any developments affecting the nonprofit or tax-exempt status of the College could adversely affect the financial condition and operations of the College. There can be no assurance given that revenues of the College will not decrease or that expenses of the College will not increase. The College's obligation to make Base Loan Payments under the Loan Agreement is an absolute and unconditional general obligation of the College, however, such obligation is not secured by any property of the College. Any and all financial forecasts are only good faith estimates and are not intended as a representation or warranty as to the future financial condition of the College.

General Factors Affecting the College

Both the College's stature in the educational community and its revenues, expenditures, assets and liabilities may be affected by events, developments and conditions relating generally to, among other things, the ability of the College: (i) to provide educational services of the types and quality required to maintain its stature; (ii) to generate sufficient revenues while controlling expenses, so that these services can be provided at a cost acceptable to the College's students; (iii) to attract faculty, staff and management necessary to provide these services and sufficient students; and (iv) to build and maintain the Facilities necessary to provide these services.

In turn, success in these areas depends upon the ability of the College and its management to respond to substantial challenges in a rapidly changing environment including, among others, (i) competition in the provision of educational services particularly through new educational media and distance learning; (ii) developments in the regional, national and international economies, such as the high regional cost of living, the limited availability of affordable housing within reasonable commuting distance and increases in regional energy costs; (iii) volatility in the financial markets, variations in economic growth, changes in monetary policy and taxation, and the adequacy of the College's investment management policies and the performance of its investments in the face of such challenges, all of which may negatively impact funds available from the College's endowment, other investments and its donors to support College operations and capital needs; and (iv) legislation and regulation by governmental authorities, including developments affecting the tax-exempt status of educational institutions like the College, changes in levels of research funding and reimbursement for administrative overhead and infrastructure, regulation of tuition levels, and limitations on the College's expansion and use of Facilities. The preservation and growth of the College's endowment are affected not only by the factors noted above but by discretionary increases in the annual payout to operations from endowment earnings, transfers of expendable funds and other distributions, all of which are subject to changes in policies and practices made by the Board of Trustees and College management. See APPENDIX A – “INFORMATION

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CONCERNING OCCIDENTAL COLLEGE” and APPENDIX B – “AUDITED FINANCIAL STATEMENTS OF THE COLLEGE” attached hereto.

College Indebtedness

The College may incur additional debt from time to time. Any indebtedness which may be incurred by the College could have a material effect on the College's operations, which may, among other things, limit the College's ability to borrow additional amounts for working capital, capital expenditures, acquisitions, debt service requirements and other purposes; require the College to dedicate a significant portion of its cash flow to pay principal and interest on the Bonds, which will reduce the funds available for working capital, capital expenditures and other general administrative and educational purposes; and limit the College's ability to plan for and react to changes in its business and industry thereby making the College more vulnerable to adverse changes in general economic, industry and competitive conditions. Any of these factors could have a material adverse effect on the financial condition of the College and its ability to pay Base Loan Payments with respect to the Bonds.

Insurance Coverage

The insurance requirements imposed by the Loan Agreement are limited, and insurance proceeds may not be available to cover all claims or risks relating to the Project, the College or its Facilities. See APPENDIX A – “INFORMATION CONCERNING OCCIDENTAL COLLEGE – Risk Management” attached hereto. Litigation could arise from the business activities of the College, including from its status as an employer. See APPENDIX A – “INFORMATION CONCERNING OCCIDENTAL COLLEGE – Litigation” attached hereto. Many of these risks are covered by insurance, but some may not be covered completely or at all.

Subject to the requirements of the Loan Agreement, the College may change its insurance coverage at any time and certain coverages may not be available. Future increases in insurance premiums and future limitations on the availability of certain types of insurance coverage could have an adverse impact on the College's financial condition and operations and, ultimately, could adversely impact the ability of the College to make Base Loan Payments.

Seismic Conditions

Generally, throughout the State, some level of seismic activity occurs on a regular basis. Periodically, the magnitude of a single seismic event can cause significant ground shaking and potential for damage to property located at or near the center of such seismic activity. The Loan Agreement requires earthquake insurance only to the extent commercially available and economically practicable in the College's sole discretion. The College does not currently maintain earthquake insurance coverage.

Investment of Funds Risk

The College invests its money pursuant to investment policies adopted from time to time by its Board of Trustees. See the audited financial statements of the College attached as APPENDIX B for information regarding the investments of the College. All investments made by the College contain a degree of risk. Such risks include, but are not limited to, a lower rate of return than expected, loss of market value and loss or delayed receipt of principal. The occurrence of these events with respect to amounts invested by the College could have a material adverse effect on the availability of funds for the payment of Base Loan Payments by the College.

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Gifts and Fundraising

The College receives gifts, grants and donations from private and public sources. For a variety of reasons, the amount of annual gifts and fundraising results are difficult to project with precision. These reasons include the voluntary nature of charitable giving, the effect of the general and local economy on giving, the unpredictability of the effectiveness of the marketing of a fundraising campaign, the varying tax treatments of the deductibility of gifts and many other factors. A failure to attain sufficient levels of gifts and support could have a material adverse effect on the College's ability to maintain its current level of operations and pay debt service on the Bonds.

While the College believes its fundraising goals to be reasonable, it is possible that its goals will not be attained. There can be no guarantee that the College will be able to reach its fundraising goals. A failure to reach such goals could negatively affect the College's fundraising ability generally and the ability of the College to pay Base Loan Payments with respect to the Bonds. See APPENDIX A – “INFORMATION CONCERNING OCCIDENTAL COLLEGE.”

Tax-Exempt Status

The Internal Revenue Code of 1986, as amended (the “Code”), imposes a number of requirements that must be satisfied for interest on nonprofit corporation obligations, such as the 2013A Bonds, to be excludable from gross income for federal income tax purposes. These requirements include limitations on the use of the 2013A Bond proceeds, limitations on the investment earnings of 2013A Bond proceeds prior to expenditure, a requirement that certain investment earnings on 2013A Bond proceeds be paid periodically to the United States and a requirement that the Authority file an information report with the Internal Revenue Service (“IRS”). The Authority and the College have covenanted in certain of the documents referred to herein that they will comply with such requirements.

Failure by the College to comply with the requirements stated in the Code and related regulations, rulings and policies may result in the treatment of interest on the 2013A Bonds as taxable, retroactively to the date of issuance of the 2013A Bonds. Moreover, the occurrence of one or more of the other events described in this section also could adversely affect the exclusion from gross income for federal or State income tax purposes of the interest on the 2013A Bonds.

Tax-Exempt Status of the College. The tax-exempt status of the 2013A Bonds presently depends upon the maintenance by the College of its status as an organization described in Section 501(c)(3) of the Code. The maintenance of such status is contingent on compliance with general rules promulgated in the Code and related regulations regarding the organization and operation of tax-exempt entities, including its operation for charitable purposes and its avoidance of transactions which may cause its assets to inure to the benefit of private individuals.

In recent years, the IRS has increased the frequency and scope of its audit and other enforcement activity regarding tax-exempt organizations and such organizations are increasingly subject to a greater degree of scrutiny by the IRS. The primary penalty available to the IRS under the Code with respect to a tax-exempt entity engaged in unlawful, private benefit is the revocation of tax-exempt status. Although the IRS has not frequently revoked the 501(c)(3) tax-exempt status of nonprofit organizations, it could do so in the future. Loss of tax-exempt status by the College could result, among other consequences, in the College being in default of certain of its covenants regarding the Bonds. Loss of tax-exempt status of the College also would have material adverse consequences on the financial condition of the College and would cause interest on the 2013A Bonds and other tax-exempt bonds issued on behalf of the College to become taxable.

Less onerous sanctions also have been imposed by the IRS, which sanctions focus enforcement on private persons who transact business with a tax-exempt organization rather than the tax-exempt organization

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itself, but these sanctions do not replace the other, more severe remedies available to the IRS as mentioned above.

Unrelated Business Taxable Income. The IRS and state, county and local taxing authorities have been undertaking audits and reviews of the operations of tax-exempt organizations with respect to their exempt activities and the generation of unrelated business taxable income (“UBTI”). The College has not historically generated any significant amounts of UBTI. The College may participate in activities which generate UBTI in the future. Management of the College believes it has properly accounted for and reported UBTI; nevertheless, an investigation or audit could lead to a challenge which could result in taxes, interest and penalties with respect to unreported UBTI and in some cases could ultimately affect the tax-exempt status of the College as well as the exclusion from gross income for federal income tax purposes of the interest on the 2013A Bonds.

State Income Tax Exemption. The loss by the College of its State income tax exemption could be adverse and material to the College and to the value of the Bonds.

Exemption from Property Taxes. State, county and local taxing authorities have been undertaking audits and reviews of the operations of tax-exempt organizations with respect to their real property tax exemptions. The management of the College believes that its Facilities and, once completed, the Project, are or will be exempt from State real property taxes; however, there can be no assurance that this will continue to be the case, and any loss of exemption could have a material adverse effect on the financial condition of the College.

Potentially Adverse Tax Legislation

There are or may be pending in the Congress of the United States legislative proposals, including some that carry retroactive effective dates, that, if enacted, could alter or amend the federal tax matters referred to above or affect the market value of the 2013A Bonds. It cannot be predicted whether or in what form any such proposal might be enacted or whether, if enacted, it would apply to bonds issued prior to enactment. Prospective purchasers of the 2013A Bonds should consult their own tax advisors regarding any pending or proposed federal tax legislation. Bond Counsel expresses no opinion regarding any pending or proposed federal tax legislation.

Bankruptcy and Limitations on Enforcement of Remedies

The remedies available to the Trustee or the Bondholders upon an Event of Default under the Indenture or Loan Agreement are in many respects dependent upon judicial actions, which are often subject to discretion and delay, and such remedies may not be readily available or may be limited. In particular, under the United States Bankruptcy Code, a bankruptcy case may be filed by or against the College or by or against any of its affiliates. In general, the filing of any such petition operates as a stay against enforcement of the terms of the agreements to which the bankrupt entity is a party, and, in the bankruptcy process, executory contracts may be subject to assumption or rejection by the bankrupt party. In the event of any such rejection, the non-rejecting party or its assigns may become an unsecured claimant of the rejecting party. The various legal opinions to be delivered concurrently with the Bonds (including Bond Counsel's approving opinion and the opinion of counsel to the College) will be qualified, as to the enforceability of the various legal instruments, by limitations imposed by bankruptcy, reorganization, insolvency or other similar laws affecting the rights of creditors generally and by general principles of equity applied in the exercise of judicial discretion.

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THE AUTHORITY

General

The Authority is a public instrumentality of the State of California created pursuant to the provisions of the Act. The Authority is authorized to issue the Bonds under the Act, to make the loan contemplated by the Loan Agreement and to secure the Bonds by a pledge of the Revenues received by the Authority pursuant to the Loan Agreement and certain other sources of payment as provided in the Indenture, including amounts held in the funds or accounts established pursuant to the Indenture (excluding the Rebate Fund).

Organization and Membership of the Authority

The membership of the Authority consists of the Treasurer, the Controller and the Director of Finance of the State of California and two members appointed by the Governor of the State of California. Of the two appointed members, one must be affiliated with a public institution of higher education as a governing board member or in an administrative capacity and the other must be affiliated with a private institution of higher education as a governing board member or in an administrative capacity.

The members of the Authority serve without compensation but are entitled to reimbursement of actual and necessary expenses incurred in the performance of their duties.

The present members and officers of the Authority and their occupations are as follows:

Bill Lockyer, Chairman, Treasurer of the State of California

John Chiang, Member, Controller of the State of California

Ana J. Matosantos, Member, Director of Finance of the State of California

William G. McGinnis, Member, Trustee, Butte-Glenn Community College District Board of Trustees

Stacy Lewis Daher, Member, Associate Vice President, Office of Finance and Treasury, University of San Francisco

Ronald L. Washington is the Executive Director of the Authority and is responsible to the Authority for the management of its affairs. The Attorney General of the State of California is acting as counsel to the Authority. Public Financial Management, San Francisco, California, serves as financial advisor to the Authority.

Outstanding Indebtedness of the Authority

The Act does not limit the amount of indebtedness the Authority may have outstanding from time to time. As of March 31, 2013, the Authority had outstanding $4,318,546,294 aggregate principal amount of bonds and notes (excluding certain bonds and notes which have been defeased) issued on behalf of various California independent colleges and universities.

LEGALITY FOR INVESTMENT IN CALIFORNIA

Obligations issued by the Authority under the Act are, under California law, securities in which all banks, savings banks, trust companies, savings and loan associations, investment companies and other persons carrying on a banking business, all insurance companies, insurance associations and other persons carrying on an insurance business, and all administrators, executors, guardians, trustees and other fiduciaries and all other persons whatsoever, who now are or may hereafter be authorized to invest in bonds or other obligations of the 17

State, may properly and legally invest any funds, including capital belonging to them or within their control; and such obligations are securities which may properly and legally be deposited with and received by any state or municipal officer or agency of the State for any purpose for which the deposit of bonds or notes or other obligations of the State is now or may hereafter be authorized by law.

TAX MATTERS

2013A Bonds

In the opinion of Orrick, Herrington & Sutcliffe LLP, Bond Counsel to the Authority (“Bond Counsel”), 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 certain covenants, interest on the 2013A Bonds is excluded from gross income for federal income tax purposes under Section 103 of the Code and is exempt from State of California personal income taxes. Bond Counsel is of the further opinion that interest on the 2013A 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 current earnings when calculating corporate alternative minimum taxable income. A complete copy of the proposed form of opinion of Bond Counsel is set forth in Appendix E hereto.

To the extent the issue price of any maturity of the 2013A Bonds is less than the amount to be paid at maturity of such 2013A Bonds (excluding amounts stated to be interest and payable at least annually over the term of such 2013A Bonds), the difference constitutes “original issue discount,” the accrual of which, to the extent properly allocable to each Beneficial Owner thereof, is treated as interest on the 2013A Bonds which is excluded from gross income for federal income tax purposes and State of California personal income taxes. For this purpose, the issue price of a particular maturity of the 2013A Bonds is the first price at which a substantial amount of such maturity of the 2013A Bonds is sold to the public (excluding bond houses, brokers, or similar persons or organizations acting in the capacity of underwriters, placement agents or wholesalers). The original issue discount with respect to any maturity of the 2013A Bonds accrues daily over the term to maturity of such 2013A Bonds on the basis of a constant interest rate compounded semiannually (with straight- line interpolations between compounding dates). The accruing original issue discount is added to the adjusted basis of such 2013A Bonds to determine taxable gain or loss upon disposition (including sale, redemption, or payment on maturity) of such 2013A Bonds. Beneficial Owners of the 2013A Bonds should consult their own tax advisors with respect to the tax consequences of ownership of 2013A Bonds with original issue discount, including the treatment of Beneficial Owners who do not purchase such 2013A Bonds in the original offering to the public at the first price at which a substantial amount of such 2013A Bonds is sold to the public.

2013A Bonds purchased, whether at original issuance or otherwise, for an amount higher than their principal amount payable at maturity (or, in some cases, at their earlier call date) (“Premium Bonds”) will be treated as having amortizable bond premium. No deduction is allowable for the amortizable bond premium in the case of bonds, like the Premium Bonds, the interest on which is excluded from gross income for federal income tax purposes. However, the amount of tax-exempt interest received, and a Beneficial Owner’s basis in a Premium Bond, will be reduced by the amount of amortizable bond premium properly allocable to such Beneficial Owner. Beneficial Owners of Premium Bonds should consult their own tax advisors with respect to the proper treatment of amortizable bond premium in their particular circumstances.

The Code imposes various restrictions, conditions and requirements relating to the exclusion from gross income for federal income tax purposes of interest on obligations such as the 2013A Bonds. The Authority and the College have made certain representations and covenanted to comply with certain restrictions, conditions and requirements designed to ensure that interest on the 2013A Bonds will not be included in federal gross income. Inaccuracy of these representations or failure to comply with these covenants may result in interest on the 2013A Bonds being included in gross income for federal income tax purposes, possibly from the date of original issuance of the 2013A Bonds. The opinion of Bond Counsel assumes the accuracy of these representations and compliance with these covenants. Bond Counsel has not 18

undertaken to determine (or to inform any person) whether any actions taken (or not taken), or events occurring (or not occurring), or any other matters coming to Bond Counsel’s attention after the date of issuance of the 2013A Bonds may adversely affect the value of, or the tax status of interest on, the 2013A Bonds. Accordingly, the opinion of Bond Counsel is not intended to, and may not, be relied upon in connection with any such actions, events or matters.

In addition, Bond Counsel has relied, among other things, on the opinion of Allen Matkins Leck Gamble Mallory & Natsis LLP, Los Angeles, California, Counsel to the College, regarding the current qualification of the College as an organization described in Section 501(c)(3) of the Code. Such opinion is subject to a number of qualifications and limitations. Bond Counsel has also relied upon representations of the College concerning the College’s “unrelated trade or business” activities as defined in Section 513(a) of the Code. Neither Bond Counsel nor Counsel to the College has given any opinion or assurance concerning Section 513(a) of the Code and neither Bond Counsel nor Counsel to the College can give or has given any opinion or assurance about the future activities of the College, or about the effect of future changes in the Code, the applicable regulations, the interpretation thereof or the resulting changes in enforcement thereof by the Internal Revenue Service. Failure of the College to be organized and operated in accordance with the Internal Revenue Service’s requirements for the maintenance of its status as an organization described in Section 501(c)(3) of the Code, or to operate the facilities financed and refinanced by the 2013A Bonds in a manner that is substantially related to the College’s charitable purpose under Section 513(a) of the Code, may result in interest payable with respect to the 2013A Bonds being included in federal gross income, possibly from the date of the original issuance of the 2013A Bonds.

Although Bond Counsel is of the opinion that interest on the 2013A Bonds is excluded from gross income for federal income tax purposes and is exempt from State of California personal income taxes, the ownership or disposition of, or the accrual or receipt of interest on, the 2013A Bonds may otherwise affect a Beneficial Owner’s federal, state or local tax liability. The nature and extent of these other tax consequences depends upon the particular tax status of the Beneficial Owner or the Beneficial Owner’s other items of income or deduction. Bond Counsel expresses no opinion regarding any such other tax consequences.

Current and future legislative proposals, if enacted into law, clarification of the Code or court decisions may cause interest on the 2013A Bonds to be subject, directly or indirectly, in whole or in part, to federal income taxation or to be subject to or exempted from state income taxation, or otherwise prevent Beneficial Owners from realizing the full current benefit of the tax status of such interest. As one example, the Obama Administration’s proposed 2014 budget includes a legislative proposal which, for tax years beginning after December 31, 2013, would limit the exclusion from gross income of interest on obligations like the 2013A Bonds to some extent for taxpayers who are individuals and whose income is subject to higher marginal income tax rates. The introduction or enactment of any such legislative proposals or clarification of the Code or court decisions may also affect, perhaps significantly, the market price for, or marketability of, the 2013A Bonds. Prospective purchasers of the 2013A Bonds should consult their own tax advisors regarding the potential impact of any pending or proposed federal or state tax legislation, regulations or litigation, as to which Bond Counsel is expected to express no opinion.

The opinion of Bond Counsel is based on current legal authority, covers certain matters not directly addressed by such authorities, and represents Bond Counsel’s judgment as to the proper treatment of the 2013A Bonds for federal income tax purposes. It is not binding on the IRS or the courts. Furthermore, 2013A Bond Counsel cannot give and has not given any opinion or assurance about the future activities of the Authority or the College, or about the effect of future changes in the Code, the applicable regulations, the interpretation thereof or the enforcement thereof by the IRS. The Authority and the College have covenanted, however, to comply with the requirements of the Code.

Bond Counsel’s engagement with respect to the 2013A Bonds ends with the issuance of the 2013A Bonds, and, unless separately engaged, Bond Counsel is not obligated to defend the Authority, the College or the Beneficial Owners regarding the tax-exempt status of the 2013A Bonds in the event of an audit

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examination by the IRS. Under current procedures, parties other than the Authority, the College and their appointed counsel, including the Beneficial Owners, would have little, if any, right to participate in the audit examination process. Moreover, because achieving judicial review in connection with an audit examination of tax-exempt bonds is difficult, obtaining an independent review of IRS positions with which the Authority or the College legitimately disagrees, may not be practicable. Any action of the IRS, including but not limited to selection of the 2013A Bonds for audit, or the course or result of such audit, or an audit of bonds presenting similar tax issues may affect the market price for, or the marketability of, the 2013A Bonds, and may cause the Authority, the College or the Beneficial Owners to incur significant expense.

2013B Bonds

The following discussion summarizes certain U.S. federal tax considerations generally applicable to holders of the 2013B Bonds that acquire their 2013B Bonds in the initial offering. The discussion below is based upon laws, regulations, rulings, and decisions in effect and available on the date hereof, all of which are subject to change, possibly with retroactive effect. Prospective investors should note that no rulings have been or are expected to be sought from the IRS with respect to any of the U.S. federal income tax consequences discussed below, and no assurance can be given that the IRS will not take contrary positions. Further, the following discussion does not deal with all U.S. federal income tax consequences applicable to any given investor, nor does it address the U.S. federal income tax considerations applicable to categories of investors some of which may be subject to special taxing rules (regardless of whether or not such persons constitute U.S. Holders), such as certain U.S. expatriates, banks, REITs, RICs, insurance companies, tax-exempt organizations, dealers or traders in securities or currencies, partnerships, S corporations, estates and trusts, investors that hold their 2013B Bonds as part of a hedge, straddle or an integrated or conversion transaction, or investors whose “functional currency” is not the U.S. dollar. Furthermore, it does not address (i) alternative minimum tax consequences or (ii) the indirect effects on persons who hold equity interests in a holder. In addition, this summary generally is limited to investors that acquire their 2013B Bonds pursuant to this offering for the issue price that is applicable to such 2013B Bonds (i.e., the price at which a substantial amount of the 2013B Bonds are sold to the public) and who will hold their 2013B Bonds as “capital assets” within the meaning of Section 1221 of the Code.

As used herein, “U.S. Holder” means a beneficial owner of a 2013B Bond that for U.S. federal income tax purposes is an individual citizen or resident of the United States, a corporation or other entity taxable as a corporation created or organized in or under the laws of the United States or any state thereof (including the District of Columbia), an estate the income of which is subject to U.S. federal income taxation regardless of its source or a trust where a court within the United States is able to exercise primary supervision over the administration of the trust and one or more United States persons (as defined in the Code) have the authority to control all substantial decisions of the trust (or a trust that has made a valid election under U.S. Treasury Regulations to be treated as a domestic trust). As used herein, “Non-U.S. Holder” generally means a beneficial owner of a 2013B Bond (other than a partnership) that is not a U.S. Holder. If a partnership holds 2013B Bonds, the tax treatment of such partnership or a partner in such partnership generally will depend upon the status of the partner and upon the activities of the partnership. Partnerships holding 2013B Bonds, and partners in such partnerships, should consult their own tax advisors regarding the tax consequences of an investment in the 2013B Bonds (including their status as U.S. Holders or Non-U.S. Holders).

For U.S. Holders

In the opinion of Bond Counsel, based upon an analysis of existing laws, regulations, rulings and court decisions and assuming compliance with certain covenants, interest on the 2013B Bonds is exempt from State of California personal income taxes. Interest on the 2013B Bonds is not excluded from gross income for federal income tax purposes under Section 103 of the Code. Bond Counsel expresses no opinion regarding any other tax consequences related to the ownership or disposition of, or accrual or receipt of interest on, the 2013B Bonds.

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The 2013B Bonds are not expected to be treated as issued with original issue discount (“OID”) for U.S. federal income tax purposes because the stated redemption price at maturity of the 2013B Bonds is not expected to exceed their issue price, or because any such excess is expected to only be a de minimis amount (as determined for tax purposes)

Prospective investors that are not individuals or regular C corporations who are U.S. persons purchasing the 2013B Bonds for investment should consult their own tax advisors as to any tax consequences to them from the purchase, ownership and disposition of the 2013B Bonds.

Disposition of the 2013B Bonds. Unless a nonrecognition provision of the Code applies, the sale, exchange, redemption, defeasance, retirement (including pursuant to an offer by the Authority) or other disposition of a 2013B Bond, will be a taxable event for U.S. federal income tax purposes. In such event, in general, a U.S. Holder of a 2013B Bond will recognize gain or loss equal to the difference between (i) the amount of cash plus the fair market value of property received (except to the extent attributable to accrued but unpaid interest on the 2013B Bond which will be taxed in the manner described above) and (ii) the U.S. Holder's adjusted tax basis in the 2013B Bond (generally, the purchase price paid by the U.S. Holder for the 2013B Bond). Any such gain or loss generally will be capital gain or loss. In the case of a noncorporate U.S. Holder of the 2013B Bonds, the maximum marginal U.S. federal income tax rate applicable to any such gain will be lower than the maximum marginal U.S. federal income tax rate applicable to ordinary income if such U.S. holder's holding period for the 2013B Bonds exceeds one year. The deductibility of capital losses is subject to limitations.

For Non-U.S. Holders

Interest. Subject to the discussion below under the heading “Information Reporting and Backup Withholding,” payments of principal of, and interest on, any 2013B Bond to a Non-U.S. Holder, other than (1) a controlled foreign corporation, as such term is defined in the Code, which is related to the Authority through stock ownership and (2) a bank which acquires such 2013B Bond in consideration of an extension of credit made pursuant to a loan agreement entered into in the ordinary course of business, will not be subject to any U.S. withholding tax provided that the beneficial owner of the 2013B Bond provides a certification completed in compliance with applicable statutory and regulatory requirements, which requirements are discussed below under the heading “Information Reporting and Backup Withholding,” or an exemption is otherwise established.

Disposition of the 2013B Bonds. Subject to the discussion below under the heading “Information Reporting and Backup Withholding,” any gain realized by a Non-U.S. Holder upon the sale, exchange, redemption, retirement (including pursuant to an offer by the Authority) or other disposition of a 2013B Bond generally will not be subject to U.S. federal income tax, unless (i) such gain is effectively connected with the conduct by such Non-U.S. Holder of a trade or business within the United States; or (ii) in the case of any gain realized by an individual Non-U.S. Holder, such holder is present in the United States for 183 days or more in the taxable year of such sale, exchange, redemption, retirement (including pursuant to an offer by the Authority) or other disposition and certain other conditions are met.

U.S. Federal Estate Tax. A 2013B Bond that is held by an individual who at the time of death is not a citizen or resident of the United States will not be subject to U.S. federal estate tax as a result of such individual's death, provided that at the time of such individual's death, payments of interest with respect to such 2013B Bond would not have been effectively connected with the conduct by such individual of a trade or business within the United States.

Information Reporting and Backup Withholding. U.S. information reporting and “backup withholding” requirements apply to certain payments of principal of, and interest on the 2013B Bonds, and to proceeds of the sale, exchange, redemption, retirement (including pursuant to an offer by the Authority) or other disposition of a 2013B Bond, to certain noncorporate holders of 2013B Bonds that are United States

21

persons. Under current U.S. Treasury Regulations, payments of principal and interest on any 2013B Bonds to a holder that is not a United States person will not be subject to any backup withholding tax requirements if the beneficial owner of the 2013B Bond or a financial institution holding the 2013B Bond on behalf of the beneficial owner in the ordinary course of its trade or business provides an appropriate certification to the payor and the payor does not have actual knowledge that the certification is false. If a beneficial owner provides the certification, the certification must give the name and address of such owner, state that such owner is not a United States person, or, in the case of an individual, that such owner is neither a citizen nor a resident of the United States, and the owner must sign the certificate under penalties of perjury. If a financial institution, other than a financial institution that is a qualified intermediary, provides the certification, the certification must state that the financial institution has received from the beneficial owner the certification set forth in the preceding sentence, set forth the information contained in such certification, and include a copy of such certification, and an authorized representative of the financial institution must sign the certificate under penalties of perjury. A financial institution generally will not be required to furnish to the IRS the names of the beneficial owners of the 2013B Bonds that are not United States persons and copies of such owners' certifications where the financial institution is a qualified intermediary that has entered into a withholding agreement with the IRS pursuant to applicable U.S. Treasury Regulations.

In the case of payments to a foreign partnership, foreign simple trust or foreign grantor trust, other than payments to a foreign partnership, foreign simple trust or foreign grantor trust that qualifies as a withholding foreign partnership or a withholding foreign trust within the meaning of applicable U.S. Treasury Regulations and payments to a foreign partnership, foreign simple trust or foreign grantor trust that are effectively connected with the conduct of a trade or business within the United States, the partners of the foreign partnership, the beneficiaries of the foreign simple trust or the persons treated as the owners of the foreign grantor trust, as the case may be, will be required to provide the certification discussed above in order to establish an exemption from withholding and backup withholding tax requirements. The current backup withholding tax rate is 28% (subject to future adjustment).

In addition, if the foreign office of a foreign “broker,” as defined in applicable U.S. Treasury Regulations pays the proceeds of the sale of a 2013B Bond to the seller of the 2013B Bond, backup withholding and information reporting requirements will not apply to such payment provided that such broker derives less than 50% of its gross income for certain specified periods from the conduct of a trade or business within the United States, is not a controlled foreign corporation, as such term is defined in the Code, and is not a foreign partnership (1) one or more of the partners of which, at any time during its tax year, are U.S. persons (as defined in U.S. Treasury Regulations Section 1.1441-1(c)(2)) who, in the aggregate hold more than 50% of the income or capital interest in the partnership or (2) which, at any time during its tax year, is engaged in the conduct of a trade or business within the United States. Moreover, the payment by a foreign office of other brokers of the proceeds of the sale of a 2013B Bond, will not be subject to backup withholding unless the payer has actual knowledge that the payee is a U.S. person. Principal and interest so paid by the U.S. office of a custodian, nominee or agent, or the payment by the U.S. office of a broker of the proceeds of a sale of a 2013B Bond, is subject to backup withholding requirements unless the beneficial owner provides the nominee, custodian, agent or broker with an appropriate certification as to its non-U.S. status under penalties of perjury or otherwise establishes an exemption.

Circular 230

Under 31 C.F.R. part 10, the regulations governing practice before the IRS (Circular 230), the Authority and the University and their tax advisors are (or may be) required to inform prospective investors that:

Any advice contained herein is not intended or written to be used, and cannot be used, by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer;

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Any such advice is written to support the promotion or marketing of the 2013B Bonds and the transactions described herein; and

Each taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.

APPROVAL OF LEGAL PROCEEDINGS

The validity of the Bonds and certain other legal matters are subject to the approving opinion of Orrick, Herrington & Sutcliffe LLP, Bond Counsel to the Authority. A complete copy of the proposed form of Bond Counsel opinion is contained in APPENDIX E hereto. Approval of other legal matters will be passed upon for the Authority by the Honorable Kamala D. Harris, the Attorney General of the State of California (the “Authority Counsel”), for the College by Allen Matkins Leck Gamble Mallory & Natsis LLP, Los Angeles, California, and for the Underwriter by Hawkins Delafield & Wood LLP, San Francisco, California. Authority Counsel does not undertake any responsibility to the Holders of the Bonds for the accuracy, completeness or fairness of this Official Statement. Bond Counsel undertakes no responsibility for the accuracy, completeness or fairness of this Official Statement.

ABSENCE OF MATERIAL LITIGATION

The Authority

To the knowledge of the officers of the Authority, there is no litigation of any nature now pending (with service of process having been accomplished) or threatened against the Authority, seeking to restrain or enjoin the issuance, sale, execution or delivery of the Bonds, or in any way contesting or affecting the validity of the Bonds, any proceedings of the Authority taken concerning the issuance or sale thereof, the pledge or application of any moneys or security provided for the payment of the Bonds, or the existence or powers of the Authority relating to the issuance of the Bonds.

The College

There is no litigation of any nature now pending or threatened against the College, which seeks to restrain or enjoin the issuance or the sale of the Bonds or which in any way contests or affects the validity of the Bonds and proceedings of the College taken with respect to the issuance or sale thereof, or the pledge or application of any moneys or security provided for the payment of the Bonds, the use of the Bond proceeds or the existence or powers of the College relating to the Bonds. See APPENDIX A – “INFORMATION CONCERNING OCCIDENTAL COLLEGE.”

UNDERWRITING

The Treasurer, with the approval of the Authority and the College, will enter into a purchase contract with Wells Fargo Bank, National Association (the “Underwriter”), pursuant to which the Underwriter will agree, subject to certain conditions, to purchase the 2013A Bonds and the 2013B Bonds from the Authority at an underwriter's discount of $275,506.77 and $36,092.09, respectively, from the initial public offering prices of the Bonds set forth on the inside cover page of this Official Statement. The Underwriter is obligated under the purchase contract to purchase all of the Bonds if any of the Bonds are purchased. The Bonds may be offered and sold by the Underwriter to certain dealers and others at prices lower than the public offering prices set forth on the inside cover page hereof, and such public offering prices may be changed, from time to time, by the Underwriter.

23

                    .         

                                                                                                          .                   .      .

 

            .              .           .    .                   .    .        .       

                                        .     .       .   . .   .    .                   .                       .                      

      .        .       .



.    .          .        . .    .

                      .               .        . .       .                      .   



               .          .   .       .      .                       

herein); and (b) certain computations to be relied upon by Bond Counsel for purposes of its opinion to the effect that the interest on the Bonds is excluded from gross income for federal income tax purposes. Such verification will be based in part on schedules and information provided by the Underwriter with respect to the foregoing computations.

FINANCIAL ADVISOR

Public Financial Management, San Francisco, California, has served as financial advisor to the Authority.

FINANCIAL STATEMENTS

The financial statements of the College as of and for the years ended June 30, 2012 and June 30, 2011, included in APPENDIX B of this Official Statement, have been audited by Grant Thornton LLP, independent accountants, as stated in their report appearing herein.

MISCELLANEOUS

All quotations from and summaries and explanations of the Act, the Indenture, the Loan Agreement and of other statutes and documents contained herein do not purport to be complete, and reference is made to said documents and statutes for full and complete statements of their provisions. Copies in reasonable quantity of the Indenture and the Loan Agreement may be obtained upon request directed to the Underwriter or the College.

The Authority furnished only the information contained under the captions “THE AUTHORITY” and “ABSENCE OF MATERIAL LITIGATION – The Authority” and, except for such information, makes no representation as to the adequacy, completeness or accuracy of this Official Statement or the information contained herein.

Any statements in this Official Statement involving matters of opinion are intended as such and not as representations of fact. This Official Statement is not to be construed as a contract or agreement between the Authority or the College and Holders of any of the Bonds.

25

This Official Statement has been delivered by the Authority and approved by the College. This Official Statement is not to be construed as a contract or agreement among any of the Authority, the College and the purchasers or Holders of the Bonds.

CALIFORNIA EDUCATIONAL FACILITIES AUTHORITY

By: /s/ Ronald L. Washington Ronald L. Washington Executive Director

The execution and delivery of this Official Statement by the Treasurer/Vice President for Finance and Planning of the College have been duly authorized by the College.

OCCIDENTAL COLLEGE

By: /s/ Amos Himmelstein Amos Himmelstein Treasurer/Vice President for Finance and Planning

26

APPENDIX A

INFORMATION CONCERNING OCCIDENTAL COLLEGE

The information presented in this Appendix A has been provided by Occidental College and has not been independently verified or reviewed by the Authority.

General

Occidental College (“Occidental” or the “College”) is a non-profit, privately endowed, national, highly selective coeducational college of liberal arts and sciences. Enrollment for the fall term of the 2012-13 academic year is 2,170 “full time equivalent students,”† ninety-nine percent of whom are undergraduate students.

Founded in 1887, the College was originally located in the Boyle Heights area of Los Angeles. In 1914 the College moved to its new campus in the Eagle Rock section of Los Angeles, where it has the distinction of being one of only a few premier liberal arts colleges in the nation to be located in a major urban center. The 120-acre campus was designed by famed architect Myron Hunt, who also designed 23 of Occidental’s 46 major buildings. The campus constitutes another kind of major endowment for Occidental, a beautiful system of facilities and grounds that remains true to the original master plan. The campus includes 13 residence halls, the Belle Wilber Thorne Hall, the Remsen Bird Hillside Theater, the Keck Theater, the Johnson Student Center and Freeman Student Union and other academic, administrative, and athletic facilities.

Although founded by a group of Presbyterian ministers and laymen, Occidental has had no formal religious association since 1910. The mission of Occidental College is to provide its students with a total educational experience of the highest quality – one that prepares them for leadership in an increasingly complex, interdependent and pluralistic world. The distinctive interdisciplinary and multicultural focus of the College’s academic program seeks to foster both the fulfillment of individual aspirations and a deeply rooted commitment to the public good.

Board of Trustees

The College is governed by a self-perpetuating Board of Trustees composed of up to 45 members. The Bylaws require that the Board of Trustees include as members the President of the College, the President of the Alumni Association Board of Governors, and four alumni-elected trustees. With the exception of the President of the College and the President of the Alumni Association Board of Governors, who serve by virtue of their offices, all members of the Board of Trustees are elected for staggered four-year terms. Approximately one-fourth of the members are elected annually.

The Board of Trustees elects a Chair, who serves for a three-year term, and one or more Vice Chairs to serve for one year. A Treasurer and a Secretary, who need not be members of the Board, are also elected to serve for a similar term. In addition to an Executive Committee, which acts for the Board between meetings, the Board has two advisory committees, the Audit Committee and the Trustee Affairs Committee, and at the beginning of each year the Board votes to create additional committees as it deems appropriate. The full Board meets four times a year.

† For an explanation of how “full time equivalent” (or “FTE”) enrollment is computed, see “FINANCIAL CONDITION OF THE COLLEGE – Revenue and Expenses – Student Enrollment.” All enrollment figures, unless otherwise stated, represent full time equivalent enrollment.

As of April 1, 2013, the members of the Board of Trustees and their primary affiliations were as follows:

† PETER ADAMSON ’84, Chief Investment Officer, OW Management LLC PATRICIA LEBRE ALIREZA ’94, Director, Cambridge Pressure Cells DAVID H. ANDERSON ’63, Attorney-at-Law, retired CARL A. BALLTON ’69. Senior Vice President, Union Bank † DAVID W. BERKUS ’62, President, Berkus Technology Ventures JOHN G. BRANCA ’72, Partner, Ziffren, Brittenham, Branca, Fischer, Gilbert-Lurie, Stiffelman & Cook, LLP † EILEEN ANISGARTEN BROWN ’73, Brown’s Building Blocks † CHRISTOPHER C. CALKINS ’67, President, Carltas Co. ANNE CANNON ’74, Independent Financial Advisor and CPA DON CONLAN President, Capital Group Companies Inc., retired JENNIFER TOWNSEND CROSTHWAITE ’84, National Bank Examiner-Comptroller of the Currency HECTOR DE LA TORRE ’89, Vice President of Communications and Government Relations, Free Conferencing Corporation JEFF DENNIS ’94, ex officio; Managing Partner, Newmeyer & Dillon, LLP GLORIA DUFFY, ’75, President and CEO, The Commonwealth Club LOUISE EDGERTON ’67, Secretary, Treasurer, and Director, Edgerton Foundation. † JOHN FARMER, Senior Director, Goldman Sachs † GARY S. FINDLEY ’76, President, Gary Steven Findley and Associates CHARLES D. GOLD ’89, Principal/Leadership Coach, Champions for Growth J. EUGENE GRIGSBY III, Ph.D. ’66, President and CEO, National Health Foundation RONALD R. HAHN ’66, Chairman, Lotus Separations LLC FRED HAMEETMAN ’61, Chairman, American Group OCTAVIO V. HERRERA ’98, Executive Vice President and Co-Founder, AlphaGenius, Inc. † STEPHEN HINCHLIFFE ’55, Chairman and CEO, The Leisure Group Inc. JULIE DEES JOHNSON ’61, Marriage and Family Therapist JOHN KEISTER ’89, President and Director, Marchex, Inc. BARBARA KEMP, Manhattan Prosecutor for Crime Reduction Programs, retired † CHARLENE CONRAD LIEBAU, Director of College Counseling Services † SUSAN MALLORY ’76 M’78, President, Southern California Northern Trust GORDON MACINNES ’63, Senior Education Policy Expert, Princeton University’s Woodrow Wilson School, retired JANET MCINTYRE ’96, Executive Coach † ROBERT NEITHART ’87, Executive Vice President and Director, Capital International Research † JOAN A. PAYDEN, President & CEO, Payden & Rygel ADAM PORTNOY ’93, President and CEO, Reit Management & Research † JOHN B. POWER ’58, Retired Partner, O’Melveny & Myers LLP STEPHEN R. ROBINSON ’77, President, SRR Trading RICK RUGANI ’75, Independent Financial Advisor, retired STEPHEN D. ROUNTREE ’71, President and CEO, Los Angeles Music Center JANETTE SADIK-KHAN ’82, Commissioner, New York Department of Transportation REID SAMUELSON ’72, Director, Samuelson Partners † CATHERINE YOUNG SELLECK ’55, President and CEO, Metaphor, Inc.,retired † ANDREA L. VAN DE KAMP, Director, Andrea Van de Kamp Counseling Services † CHRISTOPHER VARELAS, ’85, Partner, Riverwood Capital

______† Members of the Executive Committee.

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TRUSTEES EMERITI

RONALD J. ARNAULT, Retired Director and Executive Vice President, Atlantic Richfield Company NORMAN BARKER, JR., Retired Chairman of the Board, First Interstate Bank of California DENNIS COLLINS, Retired President and CEO, James Irvine Foundation HARRY W. COLMERY, JR., Senior Vice President, Capital Guardian Trust Co. VIRGINIA G. CUSHMAN ’55, Civic Volunteer ALICE WALKER DUFF ’69, President, HMWorks IRWIN FIELD, Chairman and CEO, Liberty Vegetable Oil Co. WALTER B. GERKEN, Retired Chairman of the Board and CEO, Pacific Life Insurance Company STAFFORD R. GRADY, Vice Chairman Emeritus, Sullivan Group ALLEN BROOKS GRESHAM ’53, Attorney, Gresham, Savage, Nolan & Tilden JOHN T. KNOX ’49, Partner, Nossaman, Guthner, Knox & Elliott ALLEN W. MATHIES, JR., MD, President Emeritus, Huntington Memorial Hospital DANIEL IAN MCKINNON ’89, Managing Partners, Ziff Brothers Investments DONN B. MILLER, President and CEO, Pearson-Silbert Oil Company of Texas KRISTINE A. MORRIS ’76, Partner, Morris & Berger PETER W. MULLIN, Chairman and CEO, Mullin Consulting, Inc. CATHERINE A. PEPE ’64, Retired Partner, O’Melveny & Myers JACK D. SAMUELSON ’46, Founding Partner, Samuelson Partners ROSEMARY BERNHEIM SIMMONS ’53, Former Councilmember, City of San Marino TOD WHITE ’59, Founder and CEO, Blessing/White Inc., retired CHARLES E. YOUNG, Chancellor Emeritus, UCLA

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Management

The following table sets forth the names of the principal executive officers of the College, their positions, and tenure in office. A brief career summary of each of the officers appears following the table.

Position Name Position Since Jonathan Veitch President 2009

Jorge Gonzalez Vice President for Academic Affairs / Dean of the College 2010

Amos Himmelstein Vice President for Finance and Planning/Treasurer 2011

Vincent T. Cuseo Vice President for Admission and Financial Aid 2010

Shelby Radcliffe Vice President for Institutional Advancement 2012

Barbara Avery Vice President for Student Affairs and Dean of Students 2005

Jonathan Veitch. Jonathan Veitch became the 15th president of Occidental College on July 1, 2009. Prior to joining Occidental College, he served as Dean of The New School's Eugene Lang College in New York City, from 2003 to 2008, where he had formerly held the positions of Associate Provost and Chair of Humanities. President Veitch is a leading advocate for liberal arts education. At Occidental, President Veitch launched a new integrated strategic planning process to better chart the College's future, strengthened Occidental's civic engagement, arts, and global literacy programs, and sought to create new partnerships with premier cultural institutions in Southern California. Under his leadership, Occidental completed the construction of the new Samuelson Alumni Center and the renovation and expansion of 98-year-old Swan Hall, which houses more than one-third of Oxy's faculty. A Los Angeles native and graduate of Stanford University, President Veitch received his doctoral degree in the History of American Civilization from Harvard.

Jorge Gonzalez. A distinguished economist and academic administrator, Jorge Gonzalez became Occidental College's vice president for academic affairs and dean of the college in August, 2010. He was previously a member of the Trinity University faculty in El Paso, Texas for 21 years, where he served as chair of the economics department for nine years and special assistant to the president from 2008 to 2010. He served as an American Council on Education fellow at Pomona College in 2007-08. A graduate of the Monterrey Institute of Technology in Monterrey, Mexico, Mr. Gonzalez earned his master's degree and Ph.D. in economics from Michigan State University. He has published extensively on such topics as foreign investment, undocumented immigration, international trade in the Americas, the Mexican financial system, and the political economy of U.S. trade and immigration legislation.

Amos Himmelstein. A native New Yorker, Amos Himmelstein moved to Los Angeles in 2009 when he was appointed Associate Vice President for Institutional Planning of Occidental College. In spring 2011, Mr. Himmelstein was appointed Vice President for Finance & Planning and Treasurer. Mr. Himmelstein oversees the College’s Business Office, Human Resources, Facilities Management and Hospitality Services. Prior to joining Occidental College, Mr. Himmelstein spent 14 years as an administrator at The New School in New York City, where he served as Chief of Staff in the Provost’s Office and most recently as Associate Dean for Planning and Administration at Eugene Lang College, the undergraduate liberal arts division of The New School. Mr. Himmelstein earned an M.B.A. degree in International Business Strategies from the Zicklin School of Business at Baruch, CUNY and a B.A. degree from The New School.

Vincent T Cuseo. Vincent Cuseo joined the Admission Office at Occidental in 1999. He previously served as director of admission at Grinnell College, and has also worked in admission at Stanford University, Santa Clara University, and Boston College. Mr. Cueso is a philosophy graduate of Fordham University who earned his master's at Columbia’s Teachers College.

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Shelby Radcliffe. Shelby Radcliffe was appointed vice president for institutional advancement in March 2012. During her previous 14 years at Bucknell University, Ms. Radcliffe worked as executive director of campaign administration, director of prospect research and management, and research specialist. This hands-on experience has given her experience in all aspects of the fundraising enterprise, most notably in operations, management and strategy. Her success at Bucknell University was recognized in 2008 when she was awarded the Distinguished Service to the Profession Award by the Association of Professional Researchers in Advancement. An alumna of Mt. Holyoke and Penn State, she recently earned a master’s degree in education from Bucknell University.

Barbara Avery. Barbara Avery has served as vice president for student affairs and dean of students since July 2005. Prior to coming to Occidental, she served as vice president of student affairs at Holy Names University in Oakland, dean of students at Loyola Marymount University in Los Angeles, and dean of campus life at Pomona College. A native of Washington, D.C., she is a graduate of UC San Diego.

Faculty Summary

The following table reflects the number of full time and part time faculty for the current academic year and the past four academic years together with the number of tenured full time faculty members. There are no unions representing members of the faculty.

FACULTY SUMMARY

Fall Tenured Other Part Total Semester Full Time Full Time Time FTE FTE 2008 92 71 31 194 2009 96 70 32 198 2010 98 89 31 218 2011 99 85 27 211 2012 101 81 21 203 ______Source: Occidental College.

Occidental’s student-faculty ratio is 10 to 1. Although faculty members regard teaching as their primary function, all are engaged in research or creative work. All the College full time faculty members above the rank of instructor hold doctoral degrees (except in fields where another degree is appropriate).

Academic Programs

Occidental offers a liberal arts curriculum, with 31 separate majors in 30 departments and programs, including interdisciplinary majors in 9 areas, and an independent pattern of study and combined plan programs in liberal arts and engineering with Columbia University and the California Institute of Technology (“Caltech”). There are also exchange programs with Caltech and the Art Center College of Design in Pasadena, a B.A.-J.D. program with Columbia University School of Law, and a joint B.A.-M.S. degree program with the Keck Graduate Institute. A Master of Arts is offered in Biology.

Undergraduate Education. The College provides an education of high quality in the best tradition of the liberal arts, emphasizing thorough competence in a chosen field of study with a broad understanding of our historic and cultural heritage, and the relationships among fields of knowledge. The College is committed to a philosophy of total education. The refinement of intellectual capability is the primary educational goal, but the liberal arts embrace personal, ethical, social, and political development as well.

Graduate Education. Occidental College offers graduate study in academic areas for which the College is able to provide distinctive offerings at the graduate level. Admission to graduate study is competitive, and the number of students admitted is sufficiently small to ensure flexibility in arranging individual programs of study within a general framework of policies that assure high academic standards. The Master of Arts degree is offered in the Biology Department.

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Off-Campus Study. Occidental College recognizes the importance of study abroad in the liberal arts and sciences curriculum and therefore encourages its students to participate in a number of opportunities for off-campus study which do not interrupt affiliation with the College. The College has established formal relationships with a variety of study abroad programs in forty-one countries. Most programs enable students to pursue a course of study abroad for one semester. In addition, the College offers a residential semester program at the United Nations

Accreditation

The College is accredited by Western Association of Schools and Colleges (“WASC”) and holds membership in a number of regional and national organizations related to higher education. WASC most recently accredited the College in 2012 and is scheduled for its next accreditation visit in 2021. The Delta of California Chapter of Phi Beta Kappa was established at Occidental in 1926.

Cultural Activities

The College offers a wide variety of cultural events on campus, including films, speakers, concerts, dramatic presentations and art displays. The College sponsors the Occidental College Children’s Theater, and the Intercultural Speakers Series. Performing and creative arts programs include glee club, orchestra, drama, dance, film, painting, drawing, printmaking, graphics and sculpture and theater. College students write, edit and publish a weekly student newspaper and operate KOXY radio station.

Athletics

Occidental is part of the Southern California Intercollegiate Athletic Conference at the National Collegiate Athletic Association Division III level and the National Consortium for Academics and Sports. The College offers 21 intercollegiate sports (10 for men and 11 for women) including baseball, basketball, cross country, football, golf, lacrosse, soccer, softball, swimming and diving, tennis, track and field, volleyball, and water polo.

In addition to offering competitive intercollegiate athletics, the College has a wide variety of intramural activities. Many additional activities are offered for students whose interests are largely recreational. Intramural sports range from football and basketball to club sports including rugby and lacrosse. Both league competition and special tournaments are offered throughout the year.

Litigation

The College is a party to lawsuits in the ordinary course of its business, none of which involve amounts which would either individually or in the aggregate be expected to have a materially adverse effect on the College's finances or operations. Additionally, a group of students has announced that they have filed a complaint with the U.S. Department of Education Civil Rights Office alleging that the College failed to adequately report and/or respond to sexual assaults on and around its campus. The College intends to vigorously defend itself against these claims. The College does not expect that its response or an adverse judgment related to these issues would have a materially adverse impact on its finances or operations.

FINANCIAL CONDITION OF THE COLLEGE

Financial Statements

The financial statements of the College are presented in Appendix B, and comprise audited statements for the fiscal year ended June 30, 2012. The College maintains its accounts in accordance with generally accepted accounting principles as applicable to educational institutions. See Appendix B – “FINANCIAL STATEMENTS OF THE COLLEGE” and Note 1 thereto.

The College maintains its accounts divided into three major groupings: Unrestricted Net Assets, Temporarily Restricted Net Assets and Permanently Restricted Net Assets. The Unrestricted Net Assets group is composed of the College’s resources which are available for day-to-day operations and liabilities incurred in

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connection therewith. These net assets are available for any College activity. Temporarily Restricted Net Assets result from contributions and other inflows of assets the use of which is limited by donor-imposed stipulations that either expire by the passage of time or can be fulfilled and removed by actions of the College pursuant to those stipulations. Permanently Restricted Net Assets result from contributions and other inflows of assets the use of which is limited by donor-imposed stipulations that neither expire by passage of time nor can be fulfilled or otherwise removed by actions of the College.

Recent Developments

The College expects financial and operating results for its 2012-2013 fiscal year to be stable to positive as compared to fiscal year 2011-12 results. Enrollment for the 2012-13 fiscal year has increased slightly over the prior fiscal year, and the College expects another net operating surplus for its 2012-2013 fiscal year. Applications for fall 2013 enrollment are strong and the College expects to meet its enrollment targets.

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Revenues and Expenses

The following table, which should be read in conjunction with the College’s Financial Statements and accompanying notes, provide a summary of the Activities for each of the last five fiscal years.

STATEMENT OF ACTIVITIES Fiscal Year Ended June 30

2008 2009 2010 2011 2012 Operating Revenues Tuition and fees $ 64,706,361 $ 67,003,519 $ 75,397,868 $ 83,321,084 $ 89,149,193 Room and board 11,710,089 14,086,884 15,492,578 17,028,846 18,693,265 Less: Financial assistance (23,350,334) (24,836,708) (29,081,439) (33,363,213) (37,005,895) Net student revenues 53,066,116 56,253,695 61,809,007 66,986,717 70,836,563

Private gifts, grants, and contracts 9,977,202 9,868,589 13,242,884 8,742,667 8,286,621 Federal and state grants and contracts 2,874,125 2,481,122 2,702,287 3,022,889 3,268,968 Investment income designated for operations 14,494,351 15,581,616 17,512,184 17,424,344 17,882,595 Other 4,536,880 4,800,046 4,697,556 5,107,847 5,689,587 Net assets released for operations Total revenues 84,948,674 88,985,068 99,963,918 101,284,464 105,964,334

Operating Expenditures Academic program 43,664,188 45,147,773 47,118,231 47,725,533 48,859,533 Co-curricular program 24,286,220 26,264,564 27,312,491 28,036,450 28,682,935 Public service 3,353,260 4,111,338 3,865,204 4,516,598 4,278,435 Marketing 8,374,514 9,442,621 9,485,092 10,136,024 10,849,401 Institutional support 6,794,630 8,549,489 8,187,943 7,554,770 8,139,121 Total expenditures 86,472,812 93,515,785 95,968,961 97,969,375 100,809,425

Operating income (1,524,138) (4,530,717) 3,994,957 3,315,089 5,154,909

Other Changes in Net Assets Private gifts, grants and contracts non-operating* - - - 12,476,414 9,120,572 Other - - - 50,910 45,900 Present value adjustment for annuities (1,347,479) 2,163,349 (1,207,210) (2,139,384) (245,076) Change in fair market value of assets held in trust (1,145,454) (3,222,786) 575,836 1,441,992 (10,453) Realized and unrealized gains (losses), net (15,669,917) (87,667,269) 24,406,192 43,762,247 (19,677,769)

Total other changes in net assets (18,162,850) (88,726,706) 23,774,818 55,592,179 (10,766,826)

Changes in net assets (19,686,988) (93,257,423) 27,769,775 58,907,268 (5,611,917)

Net assets, beginning of year 494,354,512 474,667,524 381,410,101 409,179,876 468,087,144

Net assets, end of year $474,667,524 $381,410,101 $409,179,876 $468,087,144 $462,475,227 ______* The College changed the presentation of temporarily restricted and permanently restricted Private gifts, grants and contracts and Other revenue in 2011 from operating revenues to Other Changes in Net Assets. Previously these amounts were included in those same categories in operating revenues. Source: Occidental College.

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Tuition and Fees. The principal component of revenues is student tuition and fees. Tuition revenues are a function of enrollment and tuition rates. See “Student Enrollment” below for information concerning enrollment. The College has raised its rates of tuition in each of the past five years and believes that its rates of tuition remain attractive compared to those of other private institutions with which it competes for students.

The following table sets forth the tuition charged full time students for the current academic year and each of the last four academic years:

TUITION

Undergraduate Academic Year Full Time Tuition

2008-09 $36,160 2009-10 37,970 2010-11 39,870 2011-12 41,860 2012-13 43,490 ______Source: Occidental College.

Room and board.

The following table sets forth the room charges combined with the maximum board charges for the current academic year and each of the last four academic years:

ROOM AND BOARD FEES

Academic Year Per Academic Year 2008-09 $10,820 2009-10 11,360 2010-11 11,980 2011-12 12,620 2012-13 12,880 ______Source: Occidental College.

Student Enrollment. The College enrolled a total of 2,170 full time equivalent students in Fall 2012. In view of its historic achievements in the area of enrollment during the past several years, the College projects, although no assurance can be given, that it will be able to maintain stable enrollment as respects its operating revenue forecasts. The College believes that its location in one of the largest population centers in the country and its attractiveness to academically qualified students of diverse backgrounds will enable it to maintain a relatively stable enrollment for the foreseeable future.

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The following table sets forth the College’s full time equivalent enrollment for the current academic year and each of the past four academic years and the number of degrees conferred in each such year completed.

ENROLLMENTS AND DEGREES

Enrollments Degrees Awarded Academic Undergrad Graduate Total Year FTE FTE FTE Bachelor Graduate Total 2008-09 1,838 17 1,855 440 6 446 2009-10 1,962 14 1,976 450 7 457 2010-11 2,082 11 2,093 448 8 456 2011-12 2,117 8 2,125 447 6 453 2012-13(1) 2,168 2 2,170 N/A(2) N/A(2) N/A(2) ______Source: Occidental College (1) Fall semester data only (2) Data not yet available, pending completion of the current academic year.

For the purpose of remaining consistent with historical data, “full time equivalent” enrollment is computed in the following manner: Undergraduates taking 12 or more units in a semester (the full time undergraduate course load) are counted as one full time equivalent. Undergraduates taking fewer than 12 units in a semester are counted as a fraction of a full time equivalent equal to the number of units being taken divided by 12. Graduate students taking nine or more units in a semester (the full time graduate course load) are counted as one full time equivalent. Graduate students taking fewer than nine units a semester are counted as a fraction of a full time equivalent equal to the number of units being taken divided by nine.

The following table sets forth applications, admissions and new enrollments for the undergraduate program for freshman and transfer students for the current academic year and the prior four academic years:

APPLICATION POOL(1)

Freshmen Freshmen and Transfers Fall Offered New Offered New Semester Applications Admission Enrollments Applications Admission Enrollments 2008 5,790 2,280 467 6,164 2,413 519 2009 6,013 2,582 576 6,468 2,684 617 2010 5,882 2,466 573 6,346 2,554 608 2011 6,120 2,369 537 6,569 2,490 577 2012 6,145 2,415 532 6,623 2,533 576 ______Source: Occidental College (1) Headcount, not full-time equivalent

The College received 6,072 freshman applications for the 2013 fall semester.

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Scholarships. Approximately 78% of the undergraduate student body receives some form of financial assistance. The following table shows the College’s total student assistance programs for all students, graduate and undergraduate, for the current academic year and the prior four academic years.

FINANCIAL AID PROGRAMS

Grants Loans

California Federal and College State Private Funded Federal and Total Grants Academic Year Programs Assistance Assistance Private College and Loans 2007-08 $2,362,069 $2,736,934 $22,994,113 $ 7,938,277 $2,435,893 $38,467,286 2008-09 2,354,187 2,829,517 24,480,487 7,314,345 3,233,155 40,211,691 2009-10 2,596,864 3,586,195 28,705,439 7,582,229 3,776,006 46,246,733 2010-11 2,993,941 3,693,369 33,088,213 9,561,260 2,964,776 52,301,559 2011-12 2,923,194 3,137,772 36,676,691 11,678,837 2,656,608 57,073,102 ______Source: Occidental College

A significant number of the College’s students depend on sources of student financial aid other than the College to pay tuition fees, room, board and other expenses. The majority of such aid comes from state and federal governmental sources. The continued availability of those funds is contingent upon continued legislative support.

Expenses.

The most significant categories of expense are Academic program, Co-curricular program, Public service, Marketing and Institutional support. Academic program expenses include faculty salaries and benefits and other expenses related to Instruction, Research and Academic support. Institutional support expenses include expenses related to executive management, administrative services, College relations, legal and audit and other similar expenses which benefit the College as a whole. Co-curricular program expenses include expenses related to student services, the residential program, providing meals to students, athletics, student publications, counseling and career guidance. Public service expenses include events and programs targeted to outside audiences which are both College and grant funded. Marketing expenses include expenses related to admissions and financial aid administration, fund raising, communication, and bookstore expenses not associated with book sales.

Bonded Indebtedness and Liabilities.

In April 2005, the College caused the issuance through the Authority of its Revenue Bonds (Occidental College) Series 2005A and Series 2005B in an aggregate principal amount of $70,335,000 (collectively, the “Series 2005 Bonds”), of which $64,135,000 remained outstanding as of June 30, 2012. The Series 2005 Bonds bear interest at rates ranging from 3.50% to 5.25% and mature through October 1, 2036. In March 2008, the College caused the issuance through the Authority of its Revenue Bonds (Occidental College) Series 2008 in an aggregate amount of $20,000,000, of which $19,315,000 remained outstanding as of June 30, 2012. The Series 2008 Bonds bear interest at rates ranging from 4.00% to 5.30% and mature through October 1, 2038. The remainder of the liabilities consisted of accounts payable, accruals, student deposits, government loans payable and annuities payable. The College’s liabilities at June 30, 2012 are shown on the balance sheet included in the College’s financial statements set forth in Appendix B.

See “DEBT SERVICE SCHEDULE” in the Official Statement for a table showing the annual debt service requirements of the College for all outstanding bonded indebtedness in each fiscal year after the issuance of the Bonds and the defeasance of a portion of the Series 2005A Bonds as described under “PLAN OF FINANCE – Plan of Refunding” in the Official Statement.

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Endowment and Similar Funds

The Endowment and Similar Funds are comprised of assets restricted by the original donor and which must be applied for the purposes originally specified (true endowment) and unrestricted assets designated by the College’s Board of Trustees to serve as endowment (quasi-endowment). Quasi-endowment funds may be released from their designation by the Board of Trustees and could be made available for any purpose, including debt service.

The following table sets forth the Endowment and Similar Funds (Unrestricted-Designated Functioning as Endowment) balances at book value on June 30 for each of the last five fiscal years:

ENDOWMENT AND SIMILAR FUNDS (Market Value in Thousands of Dollars) as of June 30,

2008 2009 2010 2011 2012

Restricted Endowment $290,026 $232,179 $250,336 $282,716 $274,478 Unrestricted -Designated Endowment 66,909 44,282 48,555 59,677 56,242 Total Endowment Funds $356,935 $276,461 $298,891 $342,393 $330,720 ______Source: Occidental College.

As of March 31, 2013, the College had total endowment funds of approximately $359 million.

The College’s Endowment and Similar Funds are overseen by the Board of Trustees’ Investment Committee and are invested principally in professionally managed pools of securities. The total return on the College’s pooled investments for the past four fiscal years was as follows:

ENDOWMENT AND SIMILAR FUNDS (Total Rate of Returns)

2009 2010 2011 2012

Pooled Endowment Funds - Return -18.4% 13.1% 19.0% -0.1% ______Source: Occidental College.

The total rate of return on pooled endowment funds was 11.9% for the period from July 1, 2012 to March 31, 2013.

Grants, Contributions and Pledges.

The College conducts fund raising programs to obtain gifts, pledges, grants and bequests from private sources including alumni, parents, friends, corporations and foundations.

Over the past three years the fund raising operation has raised an average of $15,871,374/year in Receipts (outright gifts and pledge payments, which include some deferred gifts). In the most recent fiscal year (2012), the College raised $20,315,942 in Receipts (as defined above) from 8,206 individuals. In addition, in the most recent fiscal year (2012), the College raised $20,820,212 in Commitments (outright gifts and new pledges, including pledges to be received in future years). The foregoing amounts are presented based on and consistent with CASE (Council for Advancement and Support of Education) and IRS regulations for non-profit fundraising.

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Facilities

The College has a single campus located on a hillside in the Eagle Rock community of Los Angeles, between the cities of Pasadena and Glendale. It has been at this location since 1914. It is situated on 120 acres and has 47 major buildings or facilities including 13 residential halls (bed capacity for fiscal year 2012-13 is 1,657 students) with a total of more than one million square feet. The primary architect of the College’s early buildings is Myron Hunt, and the architectural style is California Southwest or Southern California Mediterranean.

Risk Management

The College maintains a full program of insurance, although these coverages may change from time to time. These coverages currently include commercial property coverages, commercial general and excess liability coverages, boiler and machinery coverages and educators’ legal liability. In addition, the College secures automobile coverage, crime coverage, workers compensation coverage and assorted accident coverages. Property, liability and auto policies are purchased by the College.

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    

APPENDIX B

AUDITED FINANCIAL STATEMENTS OF THE COLLEGE

    

Financial Statements and Report of Independent Certified Public Accountants

OCCIDENTAL COLLEGE

June 30, 2012 and 2011

Contents

Page Report of Independent Certified Public Accountants 1 Balance sheets 2 Statements of activities 3-4 Statements of cash flows 5 Notes to financial statements 6-30

Audit Tax Advisory

Grant Thornton LLP Report of Independent Certified Public Accountants 515 South Flower Street, 7th Floor Los Angeles, CA 90071-2201

T 213.627.1717 Board of Trustees F 213.624.6793 Occidental College www.GrantThornton.com

We have audited the accompanying balance sheets of Occidental College (the “College”) as of June 30, 2012 and 2011 and the related statements of activities and cash flows for the years then ended. These financial statements are the responsibility of the College’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America as established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the College’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Occidental College as of June 30, 2012 and 2011, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Los Angeles, California November 29, 2012

Grant Thornton LLP U.S. member firm of Grant Thornton International Ltd Occidental College BALANCE SHEETS As of June 30, 2012 and 2011

2012 2011 ASSETS Cash and cash equivalents $ 5,099,712 $ 4,654,236 Assets whose use is limited 2,053,400 5,021,555 Student accounts receivable, less allowance for doubtful accounts of $265,882 and $258,247 at June 30, 2012 and 2011, respectively 479,619 529,606 Contracts and grants receivable 1,278,975 1,111,053 Contributions receivable, net 8,843,874 10,169,449 Inventories 617,026 534,233 Other assets 2,125,345 3,700,542 Trust deeds receivable 1,204,975 1,304,050 Investments 375,618,824 394,157,412 Student notes receivable, net 21,914,020 20,919,846 Bond issuance costs 1,551,726 1,619,420 Assets held in trust by others 9,738,693 9,511,195 Property and equipment, net 156,115,909 139,657,896

Total assets $ 586,642,098 $ 592,890,493

LIABILITIES AND NET ASSETS LIABILITIES Accounts payable and accrued expenses $ 13,740,070 $ 12,930,263 Student deposits and deferred revenue 5,095,869 4,698,378 Bonds payable 83,450,000 85,125,000 Bonds premium, net 1,606,378 1,679,395 Government loans payable 4,167,567 4,167,567 Annuities payable 13,277,802 13,580,392 Asset retirement obligations 2,829,185 2,622,354 Total liabilities 124,166,871 124,803,349

NET ASSETS Unrestricted 136,384,918 134,557,615 Temporarily restricted 178,066,163 190,732,089 Permanently restricted 148,024,146 142,797,440

Total net assets 462,475,227 468,087,144

Total liabilities and net assets $ 586,642,098 $ 592,890,493

The accompanying notes are an integral part of these financial statements.

2 Occidental College STATEMENT OF ACTIVITIES Year ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)

Temporarily Permanently Unrestricted Restricted Restricted 2012 Total 2011 Total

Operating Revenues: Student revenues: Tuition and fees $ 89,149,193 $ - $ - $ 89,149,193 $ 83,321,084 Room and board 18,693,265 - - 18,693,265 17,028,846 Less: Financial assistance (37,005,895) - - (37,005,895) (33,363,213)

Net student revenues 70,836,563 - - 70,836,563 66,986,717

Private gifts, grants and contracts 8,286,621 - - 8,286,621 8,742,667 Federal and state grants and contracts 3,268,968 - - 3,268,968 3,022,889 Investment income designated for operations 3,108,017 14,774,578 - 17,882,595 17,424,344 Other 5,689,587 - - 5,689,587 5,107,847 Net assets released from restrictions 14,294,034 (14,294,034) - - -

Total operating revenues 105,483,790 480,544 - 105,964,334 101,284,464

Operating Expenditures: Academic program 48,859,533 - - 48,859,533 47,725,533 Co-curricular program 28,682,935 - - 28,682,935 28,036,450 Public service 4,278,435 - - 4,278,435 4,516,598 Marketing 10,849,401 - - 10,849,401 10,136,024 Institutional support 8,139,121 - - 8,139,121 7,554,770

Total operating expenditures 100,809,425 - - 100,809,425 97,969,375

Operating income 4,674,365 480,544 - 5,154,909 3,315,089

Other changes in net assets: Net assets released for capital expenditures 1,364,820 (1,364,820) - - - Private gifts, grants and contracts non-operating 1,116,769 4,054,390 3,949,413 9,120,572 12,476,414 Other - - 45,900 45,900 50,910 Present value adjustment for annuities (112,347) (133,051) 322 (245,076) (2,139,384) Change in fair value of assets held in trust by others - 36,683 (47,136) (10,453) 1,441,992 Realized and unrealized (losses) gains, net (3,336,734) (17,483,063) 1,142,028 (19,677,769) 43,762,247 Change in underwater funds (1,128,822) 1,128,822 - - - Redesignation of net assets (750,748) 614,569 136,179 - -

Total other changes in net assets (2,847,062) (13,146,470) 5,226,706 (10,766,826) 55,592,179

Changes in net assets 1,827,303 (12,665,926) 5,226,706 (5,611,917) 58,907,268

Net assets, beginning of year 134,557,615 190,732,089 142,797,440 468,087,144 409,179,876

Net assets, end of year $ 136,384,918 $ 178,066,163 $ 148,024,146 $ 462,475,227 $ 468,087,144

The accompanying notes are an integral part of these financial statements.

3 Occidental College STATEMENT OF ACTIVITIES Year ended June 30, 2011 (with comparative totals for the year ended June 30, 2010)

Unrestricted Temporarily Restricted Permanently Restricted 2011 Total 2010 Total

Operating Revenues: Tuition and fees $ 83,321,084 $ - $ - $ 83,321,084 $ 75,397,868 Room and board 17,028,846 - - 17,028,846 15,492,578 Less: financial assistance (33,363,213) - - (33,363,213) (29,081,439)

Net student revenues 66,986,717 - - 66,986,717 61,809,007

Private gifts, grants and contracts 8,742,667 - - 8,742,667 10,093,419 Federal and state grants and contracts 3,022,889 - - 3,022,889 2,702,287 Investment income designated for operations 2,978,460 14,445,884 - 17,424,344 17,512,184 Other 5,106,755 1,092 - 5,107,847 4,656,722 Net assets released from restrictions 14,481,058 (14,481,058) - - -

Total operating revenues 101,318,546 (34,082) - 101,284,464 96,773,619

Operating Expenditures: Academic program 47,725,533 - - 47,725,533 47,118,231 Co-curricular program 28,036,450 - - 28,036,450 27,312,491 Public service 4,516,598 - - 4,516,598 3,865,204 Marketing 10,136,024 - - 10,136,024 9,485,092 Institutional support 7,554,770 - - 7,554,770 8,187,943

Total operating expenditures 97,969,375 - - 97,969,375 95,968,961

Operating income (loss) 3,349,171 (34,082) - 3,315,089 804,658

Other changes in net assets: Net assets released for capital expenditures 1,072,306 (1,072,306) - - - Private gifts, grants and contracts non-operating 2,035,000 5,969,462 4,471,952 12,476,414 3,149,465 Other 50,910 50,910 40,834 Present value adjustment for annuities (117,589) (463,872) (1,557,923) (2,139,384) (1,207,210) Change in fair value of assets held in trust by others - 1,158,851 283,141 1,441,992 575,836 Realized and unrealized gains, net 7,342,329 33,227,934 3,191,984 43,762,247 24,406,192 Change in underwater funds 2,201,493 (2,201,493) - - - Redesignation of net assets (291,851) - 291,851 - -

Total other changes in net assets 12,241,688 36,618,576 6,731,915 55,592,179 26,965,117

Changes in net assets 15,590,859 36,584,494 6,731,915 58,907,268 27,769,775

Net assets, beginning of year 118,966,756 154,147,595 136,065,525 409,179,876 381,410,101

Net assets, end of year $ 134,557,615 $ 190,732,089 $ 142,797,440 $ 468,087,144 $ 409,179,876

The accompanying notes are an integral part of these financial statements.

4 Occidental College STATEMENTS OF CASH FLOWS Year Ended June 30, 2012 and 2011 2012 2011 Cash flows from operating activities: Changes in net assets $ (5,611,917) $ 58,907,268 Adjustments to reconcile changes in net assets to net cash used in operating activities: Depreciation and amortization 6,409,246 6,431,207 Gifts of stock and securities (4,738,697) (1,109,073) Net unrealized and realized losses (gains) on investments 6,746,666 (55,011,476) Contributions restricted for long-term investments (3,949,413) (4,471,952) Contributions for capital expenditures (1,116,769) (2,035,000) Student notes receivable, net 273,384 (75,952) Changes in assets and liabilities: Student accounts receivable, net 49,987 82,961 Contracts and grants receivables (167,922) (167,176) Contributions receivable, net 1,887,837 (7,860,755) Inventories (82,793) (18,914) Other assets 1,575,197 (2,349,971) Accounts payable and accrued expenses (3,288,034) (906,934) Student deposits and deferred revenue 397,491 (20,208) Asset retirement obligations 206,831 218,763

Net cash used in operating activities (1,408,906) (8,387,212)

Cash flows from investing activities: Decrease in trust deeds receivable 99,075 277,199 Change in assets whose use is limited 2,968,155 5,723,413 Disbursement of student loan receivables (3,441,634) (3,622,916) Collection of student loan receivables 2,174,076 2,071,697 Purchases of investments (176,513,067) (147,026,244) Proceeds from sales and maturities of investments 193,043,686 157,410,183 Purchases of property and equipment (18,774,741) (9,631,827)

Net cash (used in) provided by investing activities (444,450) 5,201,505

Cash flows from financing activities: Contributions restricted for long-term investment 3,387,151 4,921,339 Contributions for capital expenditures 1,116,769 2,035,000 Change in assets held in trust by others (227,498) (1,441,992) Repayment of long-term debt (1,675,000) (1,610,000) Change in annuities payable (302,590) 1,214,224

Net cash provided by financing activities 2,298,832 5,118,571

Net increase in cash and cash equivalents 445,476 1,932,864

Cash and cash equivalents at beginning of year 4,654,236 2,721,372

Cash and cash equivalents at end of year $ 5,099,712 $ 4,654,236

Supplemental cash flow information: Cash paid for interest $ 4,080,886 $ 4,142,127 Gifts of stock and securities $ 4,738,697 $ 1,109,073 Unpaid fixed asset purchases $ 4,097,841 $ 1,616,285

The accompanying notes are an integral part of these financial statements.

5 Occidental College NOTES TO FINANCIAL STATEMENTS As of June 30, 2012 and 2011

NOTE 1 – ORGANIZATION

Nature of Operations

Occidental College (the “College”) is an independent, coeducational college of liberal arts and sciences, founded in 1887. Occidental College seeks to provide an education of high quality in the best tradition of the liberal arts, emphasizing thorough competence in a chosen field of study together with a broad understanding of our historical and cultural heritage and the relationships among fields of knowledge. The College is accredited by the Western Association of Schools and Colleges.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting and Reporting

The accompanying financial statements of the College, a not-for-profit educational institution, have been prepared on the accrual basis of accounting in accordance with Generally Accepted Accounting Principles in the United States of America (“GAAP”).

The College reports information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets and permanently restricted net assets.

Unrestricted Net Assets

Unrestricted net assets are comprised of assets which are for operating purposes or assets which are not subject to donor-imposed restrictions and are general in nature. Unrestricted net assets have been segregated into the following categories:

Designated – Educational and general – includes funds that are internally designated for operational or special use.

Designated – Functioning as endowment – includes certain gifts not otherwise restricted and Board designations of assets to function as endowment.

Designated – Student loans funds – includes lending activity to students utilizing College resources designated for that purpose as well as funds intended for a general College loan program.

6 Occidental College NOTES TO FINANCIAL STATEMENTS - CONTINUED As of June 30, 2012 and 2011

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued

Unrestricted Net Assets (continued)

Designated – Life income and annuity contracts – the College has legal title to life income and annuity contracts and agreements, subject to life interests of the beneficiaries. No significant financial benefit is or can be realized until the contractual obligations are released.

Designated – Renewal and replacement – includes amounts internally designated for renewal and replacement of property and equipment.

Invested in property and equipment – includes property and equipment stated at cost or fair value at the date of gift, less accumulated depreciation and any related debt. Depreciation is computed on a straight-line basis over the estimated useful lives for land improvements (up to 20 years), buildings and improvements (up to 40 years), and equipment and library books (up to 10 years). The College follows the policy of generally recording contributions of long-lived assets directly to unrestricted net assets. However, if the donor stipulates how long the assets must be used, the contributions are recorded as temporarily restricted support. Upon disposition of assets, the cost and related accumulated depreciation is removed with the resulting gain or loss recognized in unrestricted net assets.

Temporarily Restricted Net Assets

Temporarily restricted net assets are those assets whose use by the College is subject to donor- imposed stipulations that can be fulfilled by actions of the College pursuant to those stipulations or that expire by the passage of time. Such assets include accumulated endowment investment gains, certain charitable remainder unitrusts, pooled income funds, gift annuities, and certain pledges receivable for which the ultimate purpose of the proceeds is not permanently restricted.

Permanently Restricted Net Assets

Permanently restricted net assets are those assets subject to donor-imposed stipulations that they be maintained in perpetuity by the College. Generally, the donors of these assets permit the College to use all or part of the investment return on these assets for unrestricted purposes. Such assets primarily include the College’s permanent endowment, certain charitable remainder unitrusts, and loan funds established by outside donors.

7 Occidental College NOTES TO FINANCIAL STATEMENTS - CONTINUED As of June 30, 2012 and 2011

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued

Revenues and Expenses

Student tuition and fees are recorded as revenues in the period during which the related academic services are rendered. Student tuition and fees received in advance of services to be rendered are recorded as deferred revenue.

Contributions are reported as increases in the appropriate category of net assets, except contributions that the donor restricts where the restrictions are met within the same fiscal year, as these contributions are included in unrestricted net assets. Contributions other than cash are recorded at their fair value or net realizable value at the date of gift.

Revenues from grants and contracts are exchange transactions and are recognized as allowable expenditures under such agreements as costs are incurred.

Revenues from sources other than contributions are reported as increases in unrestricted net assets. Gains and losses on investments are reported as increases or decreases to the appropriate net asset category.

Expenses are generally reported as decreases in unrestricted net assets. Expirations of temporary restrictions on net assets are reported as “net assets released from restrictions” from temporarily restricted net assets to unrestricted net assets. Temporary restrictions on gifts to acquire long-lived assets are met in the period in which the assets are acquired or placed into service.

Contributions, including unconditional promises to give, are recognized as revenue in the period received. Conditional promises to give are not recorded as contributions until the conditions on which they depend are substantially met. Unconditional promises to give are donor commitments where there is sufficient evidence they exist, verifiable documentation, no ambiguous conditions, and they are legally enforceable. If these contributions are to be received after a year and/or over a number of years, they are discounted at a rate equivalent with the short-term and mid-term applicable risk adjusted rate. The discount is amortized and recorded as additional contribution revenue in accordance with the donor-imposed restrictions, if any. In addition, an allowance for uncollectible promises to give, based on past collection experience, is recorded.

The financial statements present expenses by functional classification in accordance with the overall educational mission of the College.

Depreciation expense is allocated directly based upon the nature of the underlying assets. Interest expense on external debt is allocated to the functional categories which have benefited from the proceeds. Plant operations and maintenance represents space-related costs that are allocated to the functional categories directly and/or based on the square footage occupancy.

8 Occidental College NOTES TO FINANCIAL STATEMENTS - CONTINUED As of June 30, 2012 and 2011

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued

Cash and Cash Equivalents

Cash and cash equivalents include short-term, highly liquid investments with a maturity of three months or less at the time of purchase. Cash and cash equivalents representing assets held as endowment and similar funds and assets held for annuity and life income payments are included in long-term investments. Cash and cash equivalents are reported at cost which approximates fair value.

The College has cash balances that periodically exceed the Federal Deposit Insurance Corporation limit. The Dodd-Frank Wall Street Reform and Consumer Protection Act ensures that all funds in a noninterest-bearing transaction account are insured in full by the Federal Deposit Insurance Corporation (“FDIC”) through December 31, 2012. This temporary unlimited coverage is in addition to, and separate from, the coverage of at least $250,000 available to depositors under the FDIC's general deposit insurance rules. Cash and cash equivalents as reflected on the balance sheets is fully FDIC insured.

Assets Whose Use Is Limited

Certain proceeds of the serial bonds (see Note 9) held by trustees are limited as to use in accordance with the requirements of the trust agreements. The workers’ compensation bank account is also limited as to use in accordance with State of California and insurance requirements. The assets whose use is limited are comprised of cash and cash equivalents and are recorded at fair value.

Investments

Investments are stated at fair value. The fair value of investments is based on quoted prices from national security exchanges, except for limited partnerships, mortgages, and venture capital which are based on information provided by external investment managers at the most recent valuation period date for the fiscal year-end. Real estate is stated at the lower of cost or fair value. Fair value for real estate is based on market appraisals. In order to ensure real estate is carried at the lower of cost or market, market appraisals are obtained every four years unless a trend in the market warrants more frequent appraisals. Management monitors the activity of external investment managers and performs reconciliations and other procedures to assure that the valuations used in the financial statements are fairly stated. The College believes the carrying amounts of these investments are a reasonable estimate of fair value. Because the limited partnership investments are not readily marketable, their estimated value is subject to uncertainty and, therefore, may differ from the value that would have been used had a ready market for such investments existed. Such differences could be material. Realized and unrealized gains and losses on investments are the difference between the fair market value and the cost basis of the investments. The net realized and unrealized gains and losses are reported in the statements of activities.

9 Occidental College NOTES TO FINANCIAL STATEMENTS - CONTINUED As of June 30, 2012 and 2011

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued

Investments (continued)

All investments of permanently restricted net assets and unrestricted net assets designated as endowment funds are carried in an investment pool unless special considerations or donor stipulations require that they be held separately.

Management of Pooled Investments

The College follows an investment policy for its pooled endowment investments which anticipates a greater long-term return through investing for capital appreciation and long-term growth. According to the College’s endowment spending policy, the amount of investment return available for current operations is determined by applying a specified percentage, 5.4%, of a twenty-one-quarter average unit market value to the units held as of September 30 of the prior fiscal year.

Inventories

Inventories in the bookstore, campus dining, and stockroom are stated at the lower of cost or market. Cost has been determined using the average-cost method.

Bond Issuance Costs

Bond issuance costs represent insurance, issuance and underwriters’ costs related to the California Educational Facilities Authority (“CEFA”) Series 2005A and 2005B Bonds and the CEFA Series 2008 Bonds (see Note 9). These amounts are amortized over the life of the bonds using the straight-line method, which approximates the effective interest method.

Collections

Collections, such as rare books and works of art, which were acquired through purchases and contributions since the College’s inception, are not recognized as assets on the balance sheets. These collections are held solely for their potential educational value or historical significance. Management has determined that the cost to establish the current market value is deemed to exceed the benefit and therefore the collections were not assigned a value for the purpose of capitalization. Purchases of collection items are recorded as decreases in unrestricted net assets in the year in which the items are acquired or as temporarily or permanently restricted net assets if the assets used to purchase the items have been restricted by donors. Contributed collection items are not reflected in the financial statements. Proceeds from deaccessions or insurance recoveries are reflected as increases in the appropriate net asset category.

10 Occidental College NOTES TO FINANCIAL STATEMENTS - CONTINUED As of June 30, 2012 and 2011

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued

Estates and Trusts

The College is named beneficiary of various estates in probate. Unless the ultimate amount available for distribution can be determined before the close of the probate proceedings, the College does not record these amounts until the point of asset distribution. Trusts in which the College is named as irrevocable beneficiary, but is not trustee, are recorded as assets held in trust by others when the College is notified by the trustee.

Actuarial Liability

The College uses the actuarial method of recording life income and annuity contract net assets. Under this method, when a gift is received, cash or investments received are recorded at market value, while the present value of the aggregate annuity obligation is recorded as a liability, based upon life expectancy tables. The remainder is recorded as revenue in the appropriate net asset category. Investment income and some gains are credited, and annuity payments and investment losses are charged to the liability accounts, with periodic adjustments made between the liability and the net assets to record actuarial gains or losses. The actuarial liability is based on the present value of future payments discounted at rates ranging from 3.6% to 11.2% and the 2000 Annuity Mortality Table.

Asset Retirement Obligation

GAAP defines a conditional asset retirement obligation as a legal obligation to perform an asset retirement activity in which the timing and (or) method of settlement are conditional on a future event that may or may not be within the control of the entity. Uncertainty with respect to the timing and/or method of settlement of the asset retirement obligation does not defer recognition of a liability. The obligation to perform the asset retirement activity is unconditional, and accordingly, a liability should be recognized.

There were $206,831 and $218,763 asset retirement costs for the years ending June 30, 2012 and 2011, respectively and $2,829,185 and $2,622,354 of conditional retirement asset obligations included in the balance sheets as of June 30, 2012 and 2011, respectively.

Student Loans

The College administers a federal student loan program, the Perkins Student Loan program. Loans made under this program have a ten-year repayment period, with interest rates between 3% and 6%. In the event of termination of the program, the loan repayments would be distributed to the federal government and the College on the basis of their relative contributions to the program. It is anticipated that any uncollectible loan balances would be treated in a similar manner.

11 Occidental College NOTES TO FINANCIAL STATEMENTS - CONTINUED As of June 30, 2012 and 2011

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues, expenses and other changes in net assets during the reporting period. While management believes that these estimates are adequate as of June 30, 2012, it is possible that actual results could differ from those estimates.

Income Taxes

The College operates as a not-for-profit organization and has been recognized by the Internal Revenue Service as an organization exempt from income taxation pursuant to Internal Revenue Code Section 501(c)(3) on its income other than unrelated business income and has also been recognized by the Franchise Tax Board as exempt from state franchise or income tax pursuant to California Revenue and Taxation Code Section 23701(d) on its income other than unrelated business income.

As required by GAAP, the College has identified and evaluated its significant tax positions for which the statute of limitations remain open and has determined that there is no material unrecognized benefit or liability to be recorded. The open tax years are the years ended June 30, 2008 through June 30, 2012 for federal tax purposes and the years ended June 30, 2007 through June 30, 2012 for California tax purposes. There have been no material changes in unrecognized benefits as of June 30, 2012, nor are any material changes anticipated in the twelve months following June 30, 2012. There have been no related tax penalties or interest, which would be classified as a tax expense in the statement of activities.

Fair Value of Financial Instruments

For those financial instruments for which it is practical, the following methods and assumptions are used to estimate fair value:

Receivables – Amounts receivable under student accounts receivable, contracts and grants receivable, contributions receivable, and trust deeds receivable are carried at cost, less allowing for doubtful accounts, which approximates fair value. Determination of the fair value of student loans receivable, which are primarily federally sponsored student loans with U.S. governmental mandated interest rates and repayment terms and subject to significant restrictions as to their transfer or disposition, could not be made without incurring excessive costs.

12 Occidental College NOTES TO FINANCIAL STATEMENTS - CONTINUED As of June 30, 2012 and 2011

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued

Fair Value of Financial Instruments (continued)

Long-term debt – Fair value was estimated based upon the discounted amount of future cash outflows based on current rates available to the College for debt of the same remaining maturities.

Recent Accounting Pronouncements

In January 2010, the Financial Accounting Standards Board (“FASB”) issued guidance to improve the disclosures related to fair value measurements. The new guidance requires expanded fair value disclosures, including the reasons for significant transfers between Level 1 and Level 2 and the amount of significant transfers into each level disclosed separately from transfers out of each level. For Level 3 fair value measurements, information in the reconciliation of recurring Level 3 measurements about purchases, sales, issuances and settlements shall be presented separately on a gross basis, rather than as one net number. In addition, clarification is provided about existing disclosure requirements, such as presenting fair value measurement disclosures for each class of assets and liabilities that are determined based on their nature and risk characteristics and their placement in the fair value hierarchy (that is, Level 1, 2, or 3), as opposed to each major category of assets and liabilities, as required in the previous guidance. Disclosures about the valuation techniques and inputs used to measure fair value for both recurring and nonrecurring fair value measurements will be required for fair value measurement that fall in either Level 2 or Level 3. The new guidance is effective for annual reporting periods beginning after December 15, 2010, except for the disclosures related to the gross presentation of purchases, sales, issuances and settlements for Level 3 fair value measurements, which are effective for reporting periods beginning after December 15, 2011. The expanded disclosures are included in the College’s financial statements effective June 30, 2010, except for the disclosures related to the gross Level 3 presentation, which was included in the College’s financial statements effective June 30, 2011.

Functional Expense Reporting

The costs of providing program and supporting services have been summarized by function, based on estimates developed by management.

Redesignation of Net Assets

Certain amounts previously received from donors have been transferred among net asset categories due to changes in donor designations.

13 Occidental College NOTES TO FINANCIAL STATEMENTS - CONTINUED As of June 30, 2012 and 2011

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued

Reclassifications

Certain reclassifications have been made to the prior year amounts to conform to the current year presentation.

NOTE 3 – INVESTMENTS

The carrying value of investments is based on the quoted market prices, analytical pricing methods for investments for which there is no market, and the carrying value of limited partnership net assets in proportion to the College’s interest. The carrying values are considered fair values, except for real estate, which is reported at the lower of cost or market. The following schedule summarizes the assets in pooled investments and the assets held as separate investments at June 30:

2012 2011 Cash and cash equivalents $ 38,825,788 $ 35,312,441 U.S. equities 78,016,227 75,906,654 Global equities (developed) 29,133,365 41,341,166 Emerging markets 28,793,405 33,107,139 Domestic fixed income 48,317,205 49,740,786 Global fixed income 5,857,097 6,367,918 Marketable alternative investments 57,972,207 61,794,476 Marketable inflation hedging assets 36,579,568 39,640,513 Private equity and venture capital 51,159,465 48,070,174 Real estate 964,497 2,876,145

$ 375,618,824 $ 394,157,412

14 Occidental College NOTES TO FINANCIAL STATEMENTS - CONTINUED As of June 30, 2012 and 2011

NOTE 3 – INVESTMENTS – Continued

The following schedule summarizes the College’s investment return for the years ended June 30:

2012 2011 Dividends, interest and rents $ 6,331,373 $ 7,477,716 Realized gains, net 16,898,518 8,885,766 Unrealized (losses) gains, net (21,197,136) 48,724,697 2,032,755 65,088,179 Less: Investment expense (3,827,929) (3,901,588) Investment income designated for operations (17,882,595) (17,424,344) Realized and unrealized (losses) gains, net of allocation to operations and investment expense $ (19,677,769) $ 43,762,247

Investment income was classified as follows for the year ended June 30:

June 30, 2012 Temporarily Permanently Unrestricted Restricted Restricted Total Dividends, interest and rents $ 1,599,316 $ 4,355,087 $ 376,970 $ 6,331,373 Realized gains, net 3,633,586 11,931,784 1,333,148 16,898,518 Unrealized losses, net (4,721,946) (16,006,331) (468,859) (21,197,136) Total $ 510,956 $ 280,540 $ 1,241,259 $ 2,032,755

June 30, 2011 Temporarily Permanently Unrestricted Restricted Restricted Total Dividends, interest and rents $ 1,394,990 $ 5,661,756 $ 420,970 $ 7,477,716 Realized gains, net 1,548,572 7,220,987 116,207 8,885,766 Unrealized gains, net 8,073,209 37,911,227 2,740,261 48,724,697 Total $ 11,016,771 $ 50,793,970 $ 3,277,438 $ 65,088,179

15 Occidental College NOTES TO FINANCIAL STATEMENTS - CONTINUED As of June 30, 2012 and 2011

NOTE 3 – INVESTMENTS – Continued

Where permitted by gift agreement and/or applicable government regulations, investments are pooled. Pooled investments and allocations of pooled investment income are accounted for on a unit-making value method. The following schedule summarized the College’s pooled investments for the years ended June 30:

2012 2011

Unit-market value at end of year $ 376.27 $ 400.94

Units owned: Unrestricted: Funds functioning as endowment 153,417 147,982

Total unrestricted 153,417 147,982

Permanently restricted: Endowment funds 723,114 703,463

Total permanently restricted 723,114 703,463

Total units 876,531 851,445

At June 30, 2012 and 2011, investments include approximately $28,331,000 and $31,098,000 respectively, in securities related to life income and annuity contracts.

NOTE 4 – FAIR VALUE MEASUREMENTS

The College accounts for its investments at fair value. Accounting Standards Codification (“ASC”) 820, Fair Value Measurements, defines fair value, established a framework used to measure fair value, and expands disclosures about fair value measurements. The standard prioritized, within the measurement of fair value, the use of market-based information over entity-specific information and established a three-level hierarchy for fair value measurement based on the transparency of information, such as the pricing source used in the valuation of an asset or liability as of the measurement date.

Investments measured and reported at fair value are classified and disclosed in one of the following categories:

Level 1 Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the College has the ability to access.

16 Occidental College NOTES TO FINANCIAL STATEMENTS - CONTINUED As of June 30, 2012 and 2011

NOTE 4 – FAIR VALUE MEASUREMENTS – Continued

Level 2 Inputs to the valuation methodology include:

Quoted prices for similar assets or liabilities in active markets; Quoted prices for identical or similar assets or liabilities in inactive markets; Inputs other than quoted prices that are observable of the asset or liability; Inputs that are derived principally from or corroborated by observable market data by correlation or to other means.

If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.

Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The determination of where an asset or liability falls in the hierarchy requires significant judgment. The College evaluates its hierarchy disclosures each reporting period and, based on various factors, it is possible that an asset or liability may be classified differently from period to period. However, the College expects that changes in classifications between different levels will be rare.

The asset or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

The College’s valuation methodologies used for alternative investments measured at fair value is based on net asset value (“NAV”) of shares held by the College at fiscal year end. There have been no changes in the methodologies used at June 30, 2012. The preceding method described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the College believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

17 Occidental College NOTES TO FINANCIAL STATEMENTS - CONTINUED As of June 30, 2012 and 2011

NOTE 4 – FAIR VALUE MEASUREMENTS – Continued

The following table summarizes the valuation of the College’s investments by the ASC 820 fair value hierarchy levels as of June 30:

June 30, 2012

Level 1 Level 2 Level 3 Total

Cash and cash equivalents $ 38,825,788 $ - $ - $ 38,825,788 US equities 47,542,221 - 30,474,006 78,016,227 Global equities (developed) 9,977,752 19,155,613 - 29,133,365 Emerging markets 8,405,541 20,387,864 - 28,793,405 Domestic fixed income 38,621,580 9,695,625 48,317,205 Global fixed income - 5,857,097 - 5,857,097 Marketable alternative investments - - 57,972,207 57,972,207 Marketable inflation hedging assets 9,821,559 - 26,758,009 36,579,568 Private equity and venture capital - - 51,159,465 51,159,465 Assets held by others 9,317,718 - 420,975 9,738,693

Total $ 162,512,159 $ 45,400,574 $ 176,480,287 $ 384,393,020

June 30, 2011

Level 1 Level 2 Level 3 Total

Cash and cash equivalents $ 35,312,441 $ - $ - $ 35,312,441 US equities 48,275,869 - 27,630,785 75,906,654 Global equities (developed) 11,837,135 29,504,031 - 41,341,166 Emerging markets - 33,107,139 - 33,107,139 Domestic fixed income 39,421,191 - 10,319,595 49,740,786 Global fixed income - 6,367,918 - 6,367,918 Marketable alternative investments - - 61,794,476 61,794,476 Marketable inflation hedging assets 8,932,319 - 30,708,194 39,640,513 Private equity and venture capital - - 48,070,174 48,070,174 Assets held by others 9,074,310 - 436,885 9,511,195

Total $ 152,853,265 $ 68,979,088 $ 178,960,109 $400,792,462

18 Occidental College NOTES TO FINANCIAL STATEMENTS - CONTINUED As of June 30, 2012 and 2011

NOTE 4 – FAIR VALUE MEASUREMENTS – Continued

The following table summarizes the valuation of the College’s Level 3 reconciliation by the ASC 820 standards for the year ended June 30:

Level 3 Assets Year Level 3 Assets Year Ended June 30, 2012 Ended June 30, 2011

Beginning balance $ 178,960,109 $ 150,349,359 Total gains or losses (included in changes in net assets) 1,717,106 27,947,972 Purchases 15,298,869 18,514,375 Sales (19,495,797) (17,851,597)

Ending balance $ 176,480,287 $ 178,960,109

19 Occidental College NOTES TO FINANCIAL STATEMENTS - CONTINUED As of June 30, 2012 and 2011

NOTE 4 – FAIR VALUE MEASUREMENTS – Continued

The College uses the NAV to determine the fair value of all the underlying investments which (a) do not have a readily determinable fair value and (b) prepare their financial statements consistent with the measurement principles or have the attributes of an investment company. The following table lists those investments by major category:

Fair Value June 30, Unfunded Redemption Redemption Notice 2012 Strategy Commitments Frequency Period

Commingled funds $ 85,570,205 These funds invest mostly in $ - Range from daily to 5 - 30 days notice domestic and international debt and quarterly equity securities. The investments are mostly public securities, and the funds are held in partnership or trust format. Marketable alternative investments 57,972,207 Hedge funds looking to generate - Range from quarterly 45 - 90 days notice steady returns in the range of 7 to 12 to annually percent with relatively low volatility and relatively low correlations to the equity markets.

Marketable inflation hedging assets 26,758,009 Investments in natural resource - Range from monthly 10 - 45 days notice equities, commodities, Treasury to semi-annually Inflation-Protected Securities that are meant to generate long-term returns similar to the US stock market but would also be expected to perform better in a market in which inflation is rapidly rising.

Private equity 42,320,576 Investments in privately held energy 22,077,714 N/A* N/A* and or mining companies that are meant to generate long- term returns similar to the US stock market but would also be expected to perform better in a market in which inflation is rapidly rising.

Venture capital 8,838,889 Investments in privately held start 625,000 N/A* N/A* up and or fast growing companies expected to generate returns above traditional equity markets.

Totals $ 221,459,886 $ 22,702,714

* These funds are in a private equity structure

NOTE 5 - TRUST DEEDS RECEIVABLE

The College held notes receivable from faculty members and administrators totaling approximately $1,138,000 and $1,219,000 at June 30, 2012 and 2011, respectively. These notes are included in the trust deeds receivable balance on the balance sheets and are recorded at cost. Such loans were issued under the College’s housing assistance program, and are collateralized by first or second deeds of trust. The interest rate is 5.0% with maturities up to 25 years. As of June 30, 2012 and 2011, no amounts were past due and no amounts have been written off. All semi-monthly payments are made through payroll deductions. Management has determined no allowance on the trust deed receivable balance is necessary as of June 30, 2012 and 2011, based on prior collection experience and current economic factors.

20 Occidental College NOTES TO FINANCIAL STATEMENTS - CONTINUED As of June 30, 2012 and 2011

NOTE 6 – CONTRIBUTIONS RECEIVABLE

Unconditional promises to give are included in the financial statements as contributions receivable and gift revenue in the appropriate net asset category. Contributions are recorded after discounting at the risk adjusted rate. The risk adjusted rates range from .19% and 4.38% for the years ended June 30, 2012 and 2011. Amortization of the discount is included in gift revenue.

As of June 30, unconditional promises to give are expected to be realized in the following periods: 2012 2011 Less than one year $ 2,638,832 $ 3,056,032 Between one year and five years 6,592,507 7,646,142 9,231,339 10,702,174 Less: Discount (113,942) (218,206) Allowance for uncollectible amounts (273,523) (314,519) Contributions receivable, net $ 8,843,874 $ 10,169,449

Contributions receivable at June 30, 2012 have the following restrictions:

Endowment for programs, activities and scholarships $ 3,897,892 Building construction 4,811,061 Education and general 522,386 Total contributions receivable, net $ 9,231,339

Unconditional promises to give include amounts from members of the College’s Board of Trustees of $5,489,000 and $8,735,000 as of June 30, 2012 and 2011, respectively.

NOTE 7 – STUDENT LOANS RECEIVABLE

The College makes uncollateralized loans to students based on financial need. Student loans are funded through Federal government loan programs or institutional resources. At June 30, 2012 and 2011, student loans represented 3.7% and 3.5% of total assets, respectively.

21 Occidental College NOTES TO FINANCIAL STATEMENTS - CONTINUED As of June 30, 2012 and 2011

NOTE 7 – STUDENT LOANS RECEIVABLE – Continued

At June 30, student loans consisted of the following:

2012 2011 Federal government programs $ 5,466,037 $ 5,177,415 Institutional programs 19,615,767 18,738,266 25,081,804 23,915,681 Less allowance for doubtful accounts: Beginning of year (2,995,835) (3,179,726) (Increases)/decreases (172,963) 169,123 Write-offs 1,014 14,768 End of year (3,167,784) (2,995,835) Student loans receivable, net $ 21,914,020 $ 20,919,846

The College participates in the federal Perkins revolving loan program. The availability of funds for loans under the program is dependent on reimbursements to the pool from repayments on outstanding loans. Funds advanced by the Federal government of $4,167,567 at June 30, 2012 and 2011, respectively, are ultimately refundable to the government and are classified as liabilities in the balance sheets.

Outstanding loans cancelled under the program result in a reduction of the funds available for loan and a decrease in the liability to the government.

At June 30, 2012 and 2011, the following amounts were past due under student loan programs:

In default In default between 240 In default less than 240 days and 2 more than 2 June 30, days years years Total past due 2012 $ 1,305,072 $ 356,589 $ 1,130,520 $ 2,792,181 2011 $ 997,560 $ 335,018 $ 1,031,283 $ 2,363,861

Allowances for doubtful accounts are established based on prior collection experience and current economic factors which, in management’s judgment, could influence the ability of loan recipients to repay the amounts per the loan terms. Institutional loan balances are written off only when they are deemed to be permanently uncollectible.

22 Occidental College NOTES TO FINANCIAL STATEMENTS - CONTINUED As of June 30, 2012 and 2011

NOTE 8 – PROPERTY AND EQUIPMENT

Property and equipment consists of the following at June 30:

2012 2011 Land and improvements $ 6,338,280 $ 6,338,280 Buildings 180,424,637 177,937,698 Furniture and equipment 19,663,374 21,238,763 Construction-in-progress 30,194,803 10,339,048 236,621,094 215,853,789 Less: Accumulated depreciation (80,505,185) (76,195,893)

Property and equipment, net $156,115,909 $139,657,896

Depreciation expense for the years ended June 30, 2012 and 2011 was $6,414,568 and $6,436,530, respectively.

NOTE 9 – DEBT

California Educational Facilities Authority (“CEFA”) Bonds

In March 2008, the College issued $20,000,000 in bonds through the CEFA (Series 2008 Bonds). The College issued serial bonds with fixed-interest rates ranging from 4.00% to 5.30%, payable on April 1 and October 1 through 2038.

The CEFA Series 2008 Bonds were used for certain capital projects.

The Series 2008 Bonds are collateralized by the pledge of certain revenues of the College including all tuition, room, board fees, and other fees or charges arising out of general College operations.

The loan agreements for the 2008 CEFA issue contain restrictive covenants which include the maintenance of certain minimum enrollment levels as well as maintaining assets available for debt coverage at a specified level. The College was in compliance with all bond covenants at June 30, 2012 and 2011.

In March 2005, the College issued $70,335,000 in bonds through the CEFA (Series 2005A and 2005B Bonds). The College issued serial bonds with fixed-interest rates ranging from 3.00% to 5.25%, payable on April 1 and October 1 through 2036.

23 Occidental College NOTES TO FINANCIAL STATEMENTS - CONTINUED As of June 30, 2012 and 2011

NOTE 9 – DEBT – Continued

The CEFA Series 2005A and 2005B Bonds were used to legally defease the outstanding debt from the College’s CEFA Series 1997 Bonds, as well as to provide funds for certain capital projects.

The Series 2005A and 2005B Bonds are collateralized by the pledge of certain revenues of the College including all tuition, room, and board fees, and other fees or charges arising out of general College operations.

The loan agreements for the 2005A and 2005B CEFA issue contain restrictive covenants which include the maintenance of certain minimum enrollment levels as well as maintaining assets available for debt coverage at a specified level. The College was in compliance with all bond covenants at June 30, 2012 and 2011.

Bonds payable at June 30, 2012 are summarized as follows:

Remaining Authorized Remaining Bonds and Issued Interest Rates Outstanding California Educational Facilities Authority (“CEFA”) Revenue Bonds Series 2005A & 2005B $ 70,335,000 3.50 to 5.25% $ 64,135,000

Series 2008 20,000,000 4.00 to 5.30% 19,315,000

Total $ 90,335,000 $ 83,450,000

Future principal payment requirements on the bonds payable are summarized as follows:

Series 2005A & 2005B CEFA Series 2008 CEFA Year Ending June 30, Bonds Bonds Total 2013 $ 1,375,000 $ 365,000 $ 1,740,000 2014 1,430,000 375,000 1,805,000 2015 1,485,000 395,000 1,880,000 2016 1,555,000 410,000 1,965,000 2017 1,625,000 425,000 2,050,000 2018 and thereafter 56,665,000 17,345,000 74,010,000 Total $ 64,135,000 $ 19,315,000 $ 83,450,000

24 Occidental College NOTES TO FINANCIAL STATEMENTS - CONTINUED As of June 30, 2012 and 2011

NOTE 9 – DEBT – Continued

The estimated fair value of the College’s bonds payable was approximately $88,772,000 and $87,625,000 at June 30, 2012 and 2011, respectively. This fair value was estimated based upon the discounted amount of future cash outflows based on current rates available to the College for debt of the same remaining maturities (Level 2).

Lines of Credit

The College has two $5,000,000 lines of credit outstanding. The first line of credit was issued to the College on April 12, 2011 and the second line of credit was issued to the College on November 9, 2011. Both lines of credit will expire on February 1, 2013. The lines of credit are collateralized by all blanket UCC filings. No amounts were drawn on either line of credit as of or during the year ended June 30, 2012.

25 Occidental College NOTES TO FINANCIAL STATEMENTS - CONTINUED As of June 30, 2012 and 2011

NOTE 10 – NET ASSETS

Net assets consist of the following at June 30, 2012 and 2011:

2012 2011

Unrestricted Designated – educational and general $ 9,909,622 $ 7,162,434 Designated – functioning as endowment 56,242,008 59,677,226 Designated – student loan funds 2,857,932 2,718,938 Designated – life income and annuity contracts 3,419,023 3,383,547 Designated – renewal and replacement 3,409,786 1,639,717 Invested in property and equipment 60,546,547 59,975,753

Total unrestricted net assets 136,384,918 134,557,615

Temporarily restricted Current restricted 1,180,938 1,213,386 Accumulated endowment investment gains 149,987,980 166,212,045 Life income and annuity contracts 5,796,521 6,071,186 Property and equipment funds 8,139,206 3,900,145 Contributions receivable, net 5,134,515 5,782,958 Assets held in trust by others 7,827,003 7,552,369

Total temporarily restricted net assets 178,066,163 190,732,089

Permanently restricted Endowment corpus 124,489,898 116,504,074 Life income and annuity contracts 5,859,857 7,915,292 Student loan funds 12,053,342 12,032,757 Contributions receivable, net 3,709,359 4,386,491 Assets held in trust by others 1,911,690 1,958,826

Total permanently restricted net assets 148,024,146 142,797,440

Total net assets $462,475,227 $468,087,144

26 Occidental College NOTES TO FINANCIAL STATEMENTS - CONTINUED As of June 30, 2012 and 2011

NOTE 10 – NET ASSETS – Continued

Net assets were released from donor restrictions by incurring expenses satisfying the restricted purpose or by occurrence of other events specified by donors, as follows:

June 30, 2012 2011

Expenditures for program activities, $ 14,294,034 $ 14,481,058 Expenditures for fixed assets 1,364,820 1,072,306 $ 15,658,854 $ 15,553,364

NOTE 11 – RETIREMENT PLAN

All academic and nonacademic employees are eligible to participate in the Teachers Insurance and Annuity Association (“TIAA”) and/or the College Retirement Equity Fund (“CREF”) defined contribution programs. TIAA is a nonprofit, legal reserve life insurance and annuity company and CREF is a nonprofit corporation companion to TIAA.

Benefits are funded by contributions from both the College and participating employees. All contributions are credited to participant accounts, and all College contributions are fully vested. The College’s contributions for the years ended June 30, 2012 and 2011 were approximately $3,723,000 and $3,618,000, respectively, which are included as expenditures in the statements of activities.

NOTE 12 – FUNDRAISING EXPENSES

During the years ended June 30, 2012 and 2011, the College incurred fundraising expenses of approximately $5,137,000 and $4,396,000, respectively, exclusive of expenses for Alumni Relations and Public Relations.

NOTE 13 – COMMITMENTS AND CONTINGENCIES

In connection with certain other equity investments, the College has committed to make additional investments totaling approximately $22,702,000 over the next several years.

In the normal course of operations, the College is named as a defendant in lawsuits and is subject to periodic examinations by regulatory agencies. After consultation with legal counsel, management is of the opinion that liabilities, if any, arising from such litigation and examinations would not have a material effect on the College’s financial position.

27 Occidental College NOTES TO FINANCIAL STATEMENTS - CONTINUED As of June 30, 2012 and 2011

NOTE 13 – COMMITMENTS AND CONTINGENCIES – Continued

Certain federal grants which the College administers and for which it receives reimbursements are subject to audit and final acceptance by federal granting agencies. The amount of expenditures that may be disallowed by the grantor, if any, cannot be determined at this time. The College expects that such amounts, if any, would not have a significant impact on the financial position of the College.

NOTE 14 – ENDOWMENT FUNDS

The Board of Trustees of the College interpreted the California Uniform Prudent Management of Institutional Funds Act (“UPMIFA”) to state that the College, in the absence of explicit donor stipulations to the contrary, may appropriate for expenditure or accumulate so much of an endowment fund as the College determines prudent for the uses, benefits, purposes, and duration for which the endowment fund is established. As a result of this interpretation, the College classifies as permanently restricted net assets, the original value of gifts donated to the endowment, original value of subsequent gifts to the endowment, and accumulations to the endowment made in accordance with the direction of the applicable donor gift instrument. The remaining portion of the donor-restricted endowment fund that is not classified in permanently restricted net assets is classified as temporarily restricted net assets until those amounts are appropriated for expenditures by the College in a manner consistent with the standard of prudence prescribed by UPMIFA which includes the:

1) Duration and preservation of the fund 2) Mission of the College and the donor-restricted endowment fund 3) General economic conditions 4) Possible effects of inflation and deflation 5) Expected total return from income and appreciation of investments 6) Other resources of the College 7) Investment policy of the College

28 Occidental College NOTES TO FINANCIAL STATEMENTS - CONTINUED As of June 30, 2012 and 2011

NOTE 14 – ENDOWMENT FUNDS – Continued

The following represents a description of the changes in net endowment assets for the years ended June 30:

June 30, 2012 Temporarily Permanently Unrestricted Restricted Restricted Total

Net endowment assets, beginning of year $ 59,677,226 $ 166,212,045 $ 116,504,074 $ 342,393,345

Investment return: Investment income, net 3,886,577 13,257,203 - 17,143,780 Net appreciation (4,642,452) (15,835,512) - (20,477,964)

Total investment return (755,875) (2,578,309) - (3,334,184)

New gifts 1,170,747 - 3,816,119 4,986,866 Matured life income and annuity contracts 3,499,757 3,499,757 Pledge payments 634,545 634,545 Other changes, including redesignations 386,749 - 35,403 422,152 Appropriation for expenditures (3,108,017) (14,774,578) - (17,882,595) Change in underwater endowments (1,128,822) 1,128,822 - - Net endowment assets, end of year $ 56,242,008 $ 149,987,980 $ 124,489,898 $ 330,719,886

June 30, 2011 Temporarily Permanently Unrestricted Restricted Restricted Total

Net endowment assets, beginning of year $ 48,554,818 $ 136,588,447 $ 113,747,341 $ 298,890,606

Investment return: Investment income, net 1,105,474 5,363,638 - 6,469,112 Net appreciation 8,299,697 40,907,337 - 49,207,034

Total investment return 9,405,171 46,270,975 - 55,676,146

New gifts 1,151,709 - 2,214,317 3,366,026 Appropriation for expenditures (2,978,460) (14,445,884) - (17,424,344) Other changes, including redesignations 1,342,495 - 542,416 1,884,911 Change in underwater endowments 2,201,493 (2,201,493) - - Net endowment assets, end of year $ 59,677,226 $ 166,212,045 $ 116,504,074 $ 342,393,345

From time to time, the fair value of the assets associated with individual donor-restricted endowment funds may fall below the value of the initial and subsequent donor gift amounts. Deficits of this nature were reported as an adjustment to unrestricted net assets of $(1,519,000) and $(390,000) as of June 30, 2012 and 2011, respectively.

29 Occidental College NOTES TO FINANCIAL STATEMENTS - CONTINUED As of June 30, 2012 and 2011

NOTE 15 – SUBSEQUENT EVENTS

The College evaluated its June 30, 2012 financial statements for subsequent events through November 29, 2012, the date the financial statements were available to be issued. The College is not aware of any subsequent events which would require recording or disclosure in the financial statements.

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APPENDIX C

BOOK-ENTRY ONLY SYSTEM

THE INFORMATION HEREIN CONCERNING DTC AND DTC'S BOOK-ENTRY SYSTEM HAS BEEN OBTAINED FROM SOURCES THAT THE AUTHORITY, THE COLLEGE, THE TRUSTEE AND UNDERWRITER BELIEVE TO BE RELIABLE, BUT THE AUTHORITY, THE COLLEGE, THE TRUSTEE AND THE UNDERWRITER TAKE NO RESPONSIBILITY FOR THE ACCURACY THEREOF. THE BENEFICIAL OWNERS SHOULD CONFIRM THE FOLLOWING INFORMATION WITH DTC OR THE DTC PARTICIPANTS (AS DEFINED HEREIN).

The Depository Trust Company (“DTC”), New York, NY, will act as securities depository for the Bonds. The Bonds will be issued as fully-registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered Bond certificate will be issued for each maturity of the Bonds, each in the aggregate principal amount of such maturity, and will be deposited with DTC.

DTC, the world's largest securities depository, is a limited-purpose trust company organized under the New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC's participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post- trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com and www.dtc.org.

Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Bonds on DTC's records. The ownership interest of each actual purchaser of each Bond (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Bonds, except in the event that use of the book- entry system for the Bonds is discontinued.

To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds; DTC's records reflect only the identity of the Direct Participants

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to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers.

Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Bonds may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Bonds, such as redemptions, tenders, defaults, and proposed amendments to the Bond documents. For example, Beneficial Owners of Bonds may wish to ascertain that the nominee holding the Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them.

Redemption notices shall be sent to DTC. If less than all of the 2013A Bonds within an issue are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. If less than all of the 2013B Bonds of an issue are being redeemed, DTC will determine pro rata the amount of the interest of each Direct Participant in such issue to be redeemed as notified by the Trustee.

Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Bonds unless authorized by a Direct Participant in accordance with DTC's MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the Authority as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy).

Redemption proceeds, distributions, and dividend payments on the Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information from the Authority or the Trustee, on payable date in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of DTC, the Trustee, or the Authority, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the Authority or the Trustee, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.

A Beneficial Owner shall give notice to elect to have its Bonds purchased or tendered, through its Participant, to the Trustee, and shall effect delivery of such Bonds by causing the Direct Participant to transfer the Participant's interest in the Bonds, on DTC's records, to the Trustee. The requirement for physical delivery of Bonds in connection with an optional tender or a mandatory purchase will be deemed satisfied when the ownership rights in the Bonds are transferred by Direct Participants on DTC's records and followed by a book- entry credit of tendered Bonds to the Trustee's DTC account.

DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving reasonable notice to the Authority or the Trustee. Under such circumstances, in the event that a successor depository is not obtained, Bond certificates are required to be printed and delivered.

The Authority may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor securities depository). In that event, Bond certificates will be printed and delivered to DTC.

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The foregoing information concerning DTC and DTC's book-entry system has been obtained from sources that the Authority believes to be reliable, but the Authority takes no responsibility for the accuracy thereof.

BENEFICIAL OWNERS WILL NOT RECEIVE PHYSICAL DELIVERY OF BONDS AND WILL NOT BE RECOGNIZED BY THE TRUSTEE AS OWNERS THEREOF UNDER THE TERMS OF THE INDENTURE, AND BENEFICIAL OWNERS WILL BE PERMITTED TO EXERCISE THE RIGHTS OF OWNERS ONLY INDIRECTLY THROUGH DTC AND THE PARTICIPANTS. THE AUTHORITY WILL HAVE NO RESPONSIBILITY OR OBLIGATION TO SUCH DTC PARTICIPANTS OR THE PERSONS FOR WHOM THEY ACT AS NOMINEES WITH RESPECT TO THE PAYMENTS TO DTC PARTICIPANTS OR THE INDIRECT PARTICIPANTS OR THE BENEFICIAL OWNERS.

The Authority, the Underwriter and the College cannot and do not give any assurances that DTC, DTC Participants or others will distribute payments of principal, redemption price (if any) and interest with respect to the Bonds paid to DTC or its nominee as the registered owner, or will distribute any redemption notices, notices of mandatory tender or other notices, to the Beneficial Owners, or that they will do so on a timely basis or will serve and act in the manner described in this Official Statement. The Authority the Underwriter and the College are not responsible or liable for the failure of DTC or any DTC Participant to make any payment or give any notice to a Beneficial Owner with respect to the Bonds or any error or delay relating thereto.

The foregoing description of the procedures and record-keeping with respect to beneficial ownership interests in the Bonds, payment of principal, redemption price (if any) and interest with respect to the Bonds to DTC Participants or Beneficial Owners, confirmation and transfer of beneficial ownership interests in such Bonds and other related transactions by and between DTC, the DTC Participants and the Beneficial Owners is based solely on information provided by DTC. Accordingly, no representations can be made concerning these matters and neither the DTC Participants nor the Beneficial Owners should rely on the foregoing information with respect to such matters, but should instead confirm the same with DTC or the DTC Participants, as the case may be.

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      

        

    .                     .                           



      .                       .  

      .                        

  .  .       .     .     .     .          .      . .      .    .                  .        .          .      . .            .  .   .  .                     .              .            . .          

 .   .    .     .       

        .   .  .          .     .   .              .

                .                .     .        

  .      

                   .               .          

.      .   .        

 .       .    . .    .            . .     .  .    . .   

                .  .   

    .           .   .      .                                 . .      .     

.           

  .  .        .       

      . .                   .   

   . .      .  .        .                .      .          .          .

          

 .     .   .             .  .   . .      

                      .      

        

.   .       .  .   .     

                  .          

               

 .  . .     . .  .   .       .             .          .         

   .     .   . 

        .    

    .      .  .  .   .  .   .     .  .  .              

          

                         .     .                

            .                      .                       .       .           .   

        .  . . .     .            .                                         .              .                             

       .       

   .  .     

                     .

     .                  

           .    .              

                           

    .        .                        .        

       .    .          .              .     .  

            .                 .        .  .    .     .  .  .       .     

  .                                       .   .  .   .                   

         .              . .     .     

        . 

      .           .     .          . .           

 .            

   .                           .                        .          

       .                 

          .         .      

   .  .  .  .     .                  

  

   .   .    

   

   

   

       

   

    

   

   .   

       .    

     .  .  .  .  .    .  .                  

    

     

     .

       .    

    

                .      .   . .   .      .   .        .     

                                                       .          .             

    .               .  .           .   .            .                               .                     .   . .   .      .   

       .      .          . . .      .               .          .            

                   .         .    

    .           . .                  .   .   .           .         .                   

       .     .         .             .                  

                                          .                        .  .

    .             .      . .              . .      .  .                .                                            .                             .          . .                       .                             

                

 .      .  .

               

.  .                        .                 . .       .  .    .       .  .       .    

                       .    .  .  .      

            .     .         .     .    .      .

 .     .    .              .     

             

          .            .   

      .           

      .                              .      

    .         

                  .          

       .   .                   

           .                       .     .

                                     .                                                  .                    .           . .      .        .  .      .     .      . .      .    .                       .      .       .                           .    . .        .                .      .   .                              . .                 .        .    .         .                 . .  .                    .     .               .                         .             .     .           .     . 

        . .       .        .  . .    

                  .     .               

       .            

             .    .    

      

           

     .       

          .  .              .     .           .       

 .  .                          .               .  . .  .   .                  

         .       

            

        .   .         . 

                          

        

                 .    .   .    .    .           .     .              .    

   .  .  .            .  .  . .  .              .     .      .   .   . .         . .  .                        

      .               .        

               .                 .        .  .    .     .  .  .       .    

      

       .   .       .           

                .    .       .            

     .          

       .                          .                                               .  .         .         

     .          

              

                          .       

       .                   .            

       .                   .            

       .  .        .      . .   . 

         .     

 

 

. .     .           .                          .                                . 

   .         .    .     .      .        .    .         .        .       .   .    .   .     .        .  .   .              .        .       .  .   .              .         .         .      .      .                   . .       .       . .    .     .      .                 .      .                              .                                           

                       .   .       .         

  .       .            .      .                 . .         .  .    .    .                            .      .                

  .       .              .     .      .     .    .             .  .                       .                                   .   .  .                 .     .                                                   .     .                            .                           .   

    .          .     .        .                   .               .   .     .   .        . .        .       .      .   

        .  .                          .            .  .  .         .          .   .   .          .                          . .       .                       .   .                       .         .         .          .      .          

 .                       .        .                       . .       .                       .   .                 .         .         .               .        

                                                 .  .                   .                      

   .    .      .                                          .           .           .   .        .           .   .     .         .          .     .         .    . .      .          .     .                                    .     .              . .         . .    . .  .              .     .   .  .    .          .      .        .               .             .      .   . .    .  .             .  

   

              .          .         .                       .      .                .                                          

                               .        .         .                    .      .             

   .        .    .                        .                            .    .           .      .        .   

    .                        .   .           .     .  .     .                  .                  

.    .                   . . . .   .  .                                            .           

                  .                           .      .      

    .     . .      .             .     .       .    

    . .      .            .

    . .                   .   .      

          .      .                                .          

         .   .    .         .               .     .       .   .                    .                     .    .      .  .      .          .            .  .       .             

         .                         .           .           .          .        . .            .     .          .             

  . . .  .         .                  .        .          .      .          .                   .            .  .              .               .    .               .    .      .   .                .              . .               

.      .   .  .                        .      .        .     .   . .           .         .           .     .  .               

 .    .                 .    . .   .           .   .   .    .          .        .                 .     

    .    .          .   .               .   .          .   .                      .           

      .        .          .          .                 .                         .  

  

 .                                           .  .  .        .  .            .               .     .       .                                         .          

 .      .                                                            .            . .   .     .  .              .  .            .  .          .        .   .  .    .                                                    .   .                     .                    .                     . .                  .          .  .                          .         

  .               .     .    .          .     .     .  .        .    .      .   .          

   .

.      .  . .  .                     .

  .                                 .    .                 .            .             .       .   

           .       .  .   .  .            .  .     .       .  .   .    .   .        .     .                  .                               .                           

    .    .       .                                .             .      .   .      .  .        

    .         .    .  .      .                  .         .            

     .     .         .      . .     .                  

      .         .       .   .  .     .             .           .      .                  .             .         .   .             .        .    .     

           .              .                          .    .     .     .                     .  .          .          .           .           .      .       .               .                .       .                   .  .   .     .                 .           

                                           .    .                .     .          .       .    .               

  .                   . .              .                             .      

  .                        .          .                                                  . . . .     .                        

           .    .  .                     .              .  .  .        .                          .                 

          .  .                               .                                    .         .           .                                         

           .             .    .        .                       .   .                  .              .                      .                  .             .            .  .                        .     .     .  .         .        .          .          .      

     .    .       .            . .        .      .                    .      .  .  .     . 

   

                    

    .  .     .    .      .

       .        .  .    .      .     .           .  . 

           

  .  .       .                             .  .     .                .    .      .      .                  

              .              .                                    .  .         .          .          .          .    .     .      .   .                        .      .            .     .                  .    .    .

      .        .              .                        .   .           .   .                 .              .                                  .          .    .           .   .       .          

            .               .   .      .   .                          .         

   .                   .          .      .     .         .           . . .                         .          

    .                      .           .                                              .    .           .               .       .          .     .           .        

  .  .  . .  .    .                                  .           .        .            .  . .       . 

   .                          . .  .   .                        

                    .              .   .    .  .                    .         .   .  .    .  .      . .      .    .    .                

      .         .          .              .         .      .      .  .   .    .                    .             .   .  .     .      . .      .    .    .                 

  .     .  .        .      .      .    .              .       .   .  .            .                        .                   .        .       .    . 

        .  .                     .                  

   .             .          .  .    .  .          .  .              .

  .       .       .     .  .       .     .                        .  .                .       .        .              .     .         .    .                              .  .                    .             .      . .     .                                  .  .                      .    .     .         

            .                .     

                         .                          .                                                                          .       .               .       .                       

.           .   .     .          .      .  .         .      .    .  .  .                                        

        .         .            .         .  . .            .                  

       .                                                 .                         .        .  .         .     .       

     .        .         . .     . .                 .   .   .         .                     .   .                                    

    .    .        .          .                              .  .                         

 

                                 .        .     .             .                        .                               

             .                   

      .                   .                . .                        .                       

         .     

        .        .                        

      .     .      .                  .      .                       .   . .       .           

               . . .                

 .                    .           .                 

   .  .                   .   .                                .        . .       .    

                        .     .         .                            .     

    .             

   . .        .                     .            .   .  

 .          .          .  .         . .   .   .    .       .   

   .        .         .                     .     .                 

                .               .              .     .                   .    .     .      .                       .     .           

      .    .      .      .           

                      .                

   .       .  . .       .       . .  .                    

              .  

             .               .                     

                                                      .        . .    .                .    .              .         .    .                                               .                         .           

         

   .  .   .      .     .       .                  .   .           .  .        .        .          .     .                   .  .         .       .  .             .               .       .   .            .      .   .    .     

    .       

                         .  .  .               

                         .     .              .          

  .    . .                 .      .               .       .   .                    .      .   .    .           .     .                

   .              .            .  .          .         .  .       . 

 .               .          .     .        

   .   .                .                                  .     .                           .               .                                               .     .   .      .     .  .               .            .      .              .    .  

                             

    .                   .                              

     .         .       .    .       .           .  .         .                          .   .       .       .      .               

          .                  .     .  .                                               .           .         

          .   .      .   .   .                             .    .    .     .  .                            .              .              

                   . .        .        .      .     .          .          .    .                .    .     .            .      .   .    .     

 .      .   .        .     .  .               .               .  .   .                                       .        .              

   

      .           .        .            .                                         .                  .  .   .         .       

          .                           .  .       .           .               . .         

          . . .         .                          . .  .             . .         

  .       .                    .         .         .          .   .               . .         

    .      .                     . .          

  .    .  .   

         .                             .     

                

                  

  .      .          .  

    .      .   .                . .            .       

  .               .                              .     .  .         .                   .    .          .         .                     .                     .        .          .          

                    .                       .                      .      .          

                   .                              .    .       .              .      .    .         .       .   .                       .   .    . .                                    .  .              .             .  .                                          .            .            .                  .   .   .                    .             .                            .    .   .      .     

   .       .     .       .         .                        .                     .        .          .                            .                           .                       .                                    

    .                .                  

.    .     .                 .                                . .          .       . .     .  .      

          .    .                    .                              .                                          .                       .   .   

                        .          .                                    .  .  .



                .       .

 .  .        .              . 

 .  .      .     

 .    .        

      .    .  .              .   .              .      .      .  .         .  .          .     .            .                         .                                 .  .            .    .             .                                              .       .                       .    .    .       

  .               .  .     .        .   .         .                    .                 .                .   .           .   .          .          .  .   .      .  .    .           .            .   

 .    .  .        .  .  .      .    . .    .                  

.        .       .         . .         .          .       .   .     .     .   .      .         .                       .     .    .   .        .          .          .    .       .    .            .   .                              .    .            .               .      .    .       .  .  .                .                         .     .              

 

           .           .     .          .                  .  .       

   . 

.       .      .  .   .      .    .   .      .    .         .            .       .                .         

       . .   .         .   .          .    . .      .   .         .                             .      .     .      .     .            .    

       .   

.          .                     .       .     .        

                       .              .  . .    . .          . .  .  .    .          .    .                      .                 .  .        .                       .               .                   .  .    .          .    .                  .  .               

    .           .                               . .             .  

   .       .   .   .  .    .           .          .  .  . .     

         .       .   .     .  .  .   .  

   .             .       . .             .                .           

                             .     

 . .        .  .                  .       .       .                            .       .     .       .   .   .       .    .                 .       .   .               

    .    .      .     .  .    .      .      .     .      .  .           .                .     .      .        .      .   .        .           . .

 

.  

 .                 .           .    .         .    .   .              

           .     .    . .   .                     .         .      .              .      .            .      .           .    .       . .   .          .                                  .            .     .         .  .               .   

   .             .          .         .    .        .  .   .          .       .                .                            .     .          .           .       .         .    .  .            .     .           .  .      .           .       .       .  .     .   

      . .     .        . .  .      .  .    .  

 .

     .     .   .       .   .        . .        . . .           .      .  .            .                           .     .      .                    .        

  .   . 

      . .      .       .  .         . .       .          . .  .   .       .               .         .         .                  .  .        .            .        .       .  .   .   .  .        

          .     .   .  .                   

      . .       .         .  .          .  . .     .  .                      .   .     .  .             .      .  .  .

           . .                                       

   .   .          

     .                 .      

  .    

      . .               .         . .       .          . .  .   .       .               .                  .                  .  .        .            .                 .   .   .          

          .     .   .                     

   .             

     .                 .      

.

   .  .  .   .      . .    .       .     . .                  . .     .   .        .      .     .                   .                                                   .              .  .                    .       .          

          .  .   .   .  .        .     .               . .                  

                      .  .              .            .       .  



  .       .    .    .                                .       .          .    . .    .   .      .       .              .                          .    .                                    .           .           

    

           

          .                             .                                .                                        .       .    

          . 

        

                                    .            .  .     .       .                                        .    .        .  .    

          .    

                        

                         .        

  .                               

     .                                            

                                               

  . .        .  .       .                                 .           .              .                .       .                  

       .  .       .  .          .     .    .             .

  

   .                      .       .          .  .                      .       .  .  . 

               .   .                                                     .          .    . 

             .     

  .         .       .        

      .                                .        . 

                           

           .      .                                        .          .                .           .         

  .              .          .                                    . . .     .                         

      .        .                .       .           .          . .        .   . .                     .        

         

                                            .             .             .                         

         .                                         .          .    .     . .    

      .     .         .         .   .        .           .    .    .      . .   .        .             . .                     .  .       .        .  

       .       .              .  .  .      .       .    .                      .             

              .       

  .                        .        .     . .                     .                       . .         .    .           .  .          .     .                           .      .            .                    .       

           . .               .                                   .                 

      .    .     .                             .     .                     

  .         

        .  

  .   .                       .  .    .                         .                     .              . 

  .                   .             . .            

    .                 .       . .    .  .  .   .      

   

                             .  

 .                      .    .  .  .   .       

  .                       

 .     . .          .       .     .     .   .                             .   .  .  .   .   .      .     .     .        .    . .              

                           .                           .  . .                             

  

         

      .   .   . .    

        .                             .  .    .              .  .                     .   .               .        .       

 .               .       .     .                        .     

  .     .   .                         .                 .                .      . 

           .            .     .      .  .    .                             .  .     .       . . . 

                 .   .     .               .  .            

     

   .                .             .                .    .  .        

  .    .          . .            .   .      .   .

  .    .        . .  .      .                  .                    .          

                                             .            .    .       .    .  .            .       .    . .                            .    

 .          .          .   .      .  .          .  .              .  .   .       .      .    .               .     .           .         .      . .    .       .   .       .  .           .          



          .   .             .           .  .                    .     .                            .        .  .       .        .      

                           .     

. .        .  .                    .       .       .                            .       .     .       .   .   .       .    .                  .       .   .               

.    .           . .             .     

          .             .          .               

                   .                       .   .           .                         .                  

                                  

                                    .                                                     .       .    .       .                .                    

   .       .   .  .     .      .  .    .  .           .             .  .  . .      .            .       .     .  .  .   .  

  

      

                         .   

  .

   .  

   .       



   .         

  

           .  .               .                    .                                  .                                                   .                  

                   .         .                   .       

           .                                                                                                                                                                                        .                  .        

         .              .  .     .   .                     .   .            .           .    .           .           .                     .                                .  .  .  .     .       .  .                                                             .                                                     . .    . .    .                                                   .     .  . .     .               .           .        .       .                     .  .               .             .    .   .                      

                     

            .

     .    .          .          .              .    .    .                                     

      .    .          .

                                                                                                   

. .



APPENDIX F

FORM OF CONTINUING DISCLOSURE AGREEMENT

This Continuing Disclosure Agreement (the "Disclosure Agreement"), dated as of June 1, 2013, is executed and delivered by Occidental College (the "College") and U.S. Bank National Association, a national banking association, as trustee and as dissemination agent (the "Trustee" and "Dissemination Agent") in connection with the issuance of $54,995,000 California Educational Facilities Authority Revenue Bonds (Occidental College) Series 2013A (Tax-Exempt) and Series 2013B (Taxable) (collectively, the "Bonds"). The Bonds are being issued pursuant to an Indenture, dated as of June 1, 2013 (the "Indenture"), between the California Educational Facilities Authority (the "Authority") and the Trustee. The proceeds of the Bonds are being loaned by the Authority to the College pursuant to a Loan Agreement, dated as of June 1, 2013 (the "Loan Agreement"), between the Authority and the College. The College, the Trustee and the Dissemination Agent covenant and agree as follows:

SECTION I. Purpose of the Disclosure Agreement. This Disclosure Agreement is being executed and delivered by the College, the Trustee and the Dissemination Agent for the benefit of the Holders and Beneficial Owners of the Bonds and in order to assist the Participating Underwriter in complying with the Rule (defined below). The College, the Trustee and the Dissemination Agent acknowledge that the Authority has undertaken no responsibility with respect to any reports, notices or disclosures provided or required under this Agreement, and has no liability to any person, including any Holder or Beneficial Owner of the Bonds, with respect to the Rule.

SECTION II. Definitions. In addition to the definitions set forth in the Indenture, which apply to any capitalized term used in this Disclosure Agreement unless otherwise defined in this Section, the following capitalized terms shall have the following meanings:

"Annual Report" shall mean any Annual Report provided by the College pursuant to, and as described in, Sections III. and IV. of this Disclosure Agreement.

"Beneficial Owner" shall mean any person which (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of any Bonds for federal income tax purposes.

"Disclosure Representative" shall mean the person designated by the College on the signature page hereof or such person's designee, or such other person as the College shall designate in writing to the Trustee and Dissemination Agent from time to time.

"Dissemination Agent" shall mean U.S. Bank National Association, acting in its capacity as Dissemination Agent hereunder, or any successor Dissemination Agent designated in writing by the College and which has filed with the Trustee a written acceptance of such designation.

"Listed Events" shall mean any of the events listed in Section V.A. of this Disclosure Agreement.

"MSRB" means the Municipal Securities Rulemaking Board established pursuant to Section 15B(b)(1) of the Securities Exchange Act of 1934, as amended.

"Participating Underwriter" shall mean the original underwriter of the Bonds required to comply with the Rule in connection with offering of the Bonds.

"Repository" means the MSRB or any other information repository as recognized from time to time by the Securities and Exchange Commission for the purposes referred to in the Rule.

F-1 "Rule" shall mean Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time.

"State" shall mean the State of California.

SECTION III. Provision of Annual Reports.

A. The College shall, or, upon written direction, shall cause the Dissemination Agent to, not later than 180 days after the end of the College's fiscal year (presently as indicated on the signature page hereof), commencing with the report for the 2012-13 Fiscal Year, provide to the Repository an Annual Report which is consistent with the requirements of Section IV. of this Disclosure Agreement. In each case, the Annual Report may be submitted as a single document or as separate documents comprising a package, and may cross- reference other information as provided in Section IV. of this Disclosure Agreement; provided that the audited financial statements of the College may be submitted separately from the balance of the Annual Report and later than the date required above for the filing of the Annual Report if they are not available by that date. If the College's fiscal year changes, it shall give notice of such change in the same manner as for a Listed Event under Section V.C.

B. Not later than fifteen (15) Business Days prior to the date specified in subsection A. for providing the Annual Report to the Repository, the College shall provide the Annual Report to the Dissemination Agent and the Trustee (if the Trustee is not the Dissemination Agent). If by such date the Trustee has not received a copy of the Annual Report, the Trustee shall contact the College and the Dissemination Agent to determine if the College is in compliance with the first sentence of this subsection B.

C. If the Trustee is unable to verify that an Annual Report has been provided to the Repository by the date required in subsection A, the Trustee shall send a notice the Authority and the Repository in substantially the form attached as Exhibit A.

D. The Dissemination Agent shall file a report with the College, the Authority and the Trustee certifying that the Annual Report has been provided pursuant to this Disclosure Agreement, stating the date it was provided.

SECTION IV. Content of Annual Reports. The College's Annual Report shall contain or include by reference the following:

A. The audited financial statements of the College for the prior fiscal year, prepared in accordance with generally accepted accounting principles as promulgated from time to time by the Financial Accounting Standards Board. If the College's audited financial statements are not available by the time the Annual Report is required to be filed pursuant to Section III.A., the Annual Report shall contain unaudited financial statements in a format similar to the financial statements required for the fiscal year being audited, and the audited financial statements shall be filed in the same manner as the Annual Report when they become available.

B. The completed form attached hereto as Exhibit B or such other form which contains substantially the same information.

Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues with respect to which the College is an "obligated person" (as defined by the Rule), which have been filed with the Repository or the Securities and Exchange Commission. If the document included by reference is a final official statement, it must be available from the Repository. The College shall clearly identify each such other document so included by reference.

F-2 SECTION V. Reporting of Listed Events.

A. Pursuant to the provisions of this Section V., the College shall give, or cause to be given, notice of the occurrence of any of the following events with respect to the Bonds:

1. Principal and interest payment delinquencies;

2. Non-payment related defaults, if material;

3. Unscheduled draws on debt service reserves reflecting financial difficulties;

4. Unscheduled draws on credit enhancements reflecting financial difficulties;

5. Substitution of credit or liquidity providers, or their failure to perform;

6. Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the Bonds, or other material events affecting the tax status of the Bonds;

7. Modifications to rights of Bondowners, if material;

8. Bond calls, if material (the giving of notice of regularly scheduled mandatory sinking fund redemption shall not be deemed material for this purpose);

9. Defeasances;

10. Release, substitution, or sale of property securing repayment of the Bonds, if material;

11. Rating changes;

12. Tender offers;

13. Bankruptcy, insolvency, receivership or similar event with respect to an obligated person;

14. The consummation of a merger, consolidation, acquisition or sale of all or substantially all of the assets of an obligated person, other than in the ordinary course of business, the entry into an agreement to take such an action or termination of an agreement to undertake any such action, other than pursuant to its terms, if material; and

15. Appointment of a successor or an additional trustee or change in the name of a trustee, if material.

B. The Trustee shall, as soon as reasonably practicable, of a responsible officer's obtaining actual knowledge of the occurrence of any of the Listed Events contact the Disclosure Representative, inform such person of the event, and request that the College promptly notify the Dissemination Agent in writing whether or not to report the event pursuant to subsection C below. The Trustee shall have no duty to determine the materiality of any such Listed Events. For purposes of this Disclosure Agreement, "actual knowledge" of the occurrence of such Listed Events shall mean actual knowledge by the officer at the corporate trust office of the Trustee with regular responsibility for the administration of matters related to the Indenture.

C. Upon the occurrence of a Listed Event, the Corporation shall, in a timely manner not to exceed ten (10) Business Days, direct the Dissemination Agent to file a notice of such occurrence with the MSRB as provided in Section VI. The Corporation shall provide a copy of each such notice to the Issuer, the

F-3 Trustee and the Underwriter. The Dissemination Agent, if other than the Corporation, shall have no duty to file a notice of an event described hereunder unless it is directed in writing to do so by the Corporation, and shall have no responsibility for verifying any of the information in any such notice or determining the materiality of the event described in such notice.

SECTION VI. Electronic Filing. The College, the Trustee and the Dissemination Agent may satisfy its disclosure obligations hereunder to file any notice, document or information by filing the same with the MSRB through its Electronic Municipal Market Access system, in the format and with identifying or other information as may be required by the Securities and Exchange Commission and the MSRB, or any other Repository that may be recognized by the Securities and Exchange Commission, and in such manner as may be specified by the Securities and Exchange Commission and such Repository.

SECTION VII. Termination of Reporting Obligation. The College's, the Trustee's and the Dissemination Agent's obligations under this Disclosure Agreement shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds. If the College's obligations under the Loan Agreement are assumed in full by some other entity, such person shall be responsible for compliance with this Disclosure Agreement in the same manner as if it were the College and the original College shall have no further responsibility hereunder. If such termination or substitution occurs prior to the final maturity of the Bonds, the College shall give notice of such termination or substitution in the same manner as for a Listed Event under Section V.C.

SECTION VIII. Dissemination Agent. The College may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Agreement, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. The Dissemination Agent shall not be responsible in any manner for the content of any notice or report prepared by the College pursuant to this Disclosure Agreement. If at any time there is not any other designated Dissemination Agent, the College shall be the Dissemination Agent. The Dissemination Agent may resign by providing 30 days written notice to the College and the Trustee.

SECTION IX. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Agreement, the College, Dissemination Agent and the Trustee may amend this Disclosure Agreement (and the Trustee and Dissemination Agent shall agree to any amendment so requested by the College provided, the Trustee and Dissemination Agent shall not be obligated to enter into any such amendment that modifies or increases its duties or obligations hereunder) and any provision of this Disclosure Agreement may be waived, provided that the following conditions are satisfied:

A. If the amendment or waiver relates to the provisions of Sections III.A, IV. or V.A., it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature or status of an obligated person with respect to the Bonds, or the type of business conducted;

B. The undertaking herein, as amended or taking into account such waiver, would, in the opinion of nationally recognized bond counsel, have complied with the requirements of the Rule at the time of the original issuance of the Bonds, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and

C. The amendment or waiver either (i) is approved by the Holders in the same manner as provided in the Indenture for amendments to the Indenture with the consent of Holders, or (ii) does not, in the opinion of nationally recognized bond counsel, materially impair the interests of the Holders or Beneficial Owners of the Bonds.

In the event of any amendment or waiver of a provision of this Disclosure Agreement, the College shall describe such amendment in the next Annual Report, and shall include, as applicable, a narrative explanation of the reason for the amendment or waiver and its impact on the type (or, in the case of a change of

F-4 accounting principles, on the presentation) of financial information or operating data being presented by the College. In addition, if the amendment relates to the accounting principles to be followed in preparing financial statements, (i) notice of such change shall be given in the same manner as for a Listed Event under Section V.C., and (ii) the Annual Report for the year in which the change is made should present a comparison (in narrative form and also, if feasible, in quantitative form) between the financial statements as prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles.

SECTION X. Additional Information. Nothing in this Disclosure Agreement shall be deemed to prevent the College from disseminating any other information, using the means of dissemination set forth in this Disclosure Agreement or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Agreement. If the College chooses to include any information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is specifically required by this Disclosure Agreement, the College shall have no obligation under this Agreement to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event.

SECTION XI. Default. In the event of a failure of the College or the Dissemination Agent to comply with any provision of this Disclosure Agreement, the Trustee shall at the written request of any Participating Underwriter or the Holders of at least 25% of the Outstanding Bonds, and upon provision of indemnification satisfactory to the Trustee, or any Holder or Beneficial Owner of the Bonds may, take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the College or the Dissemination Agent, as the case may be, to comply with its obligations under this Disclosure Agreement. A default under this Disclosure Agreement shall not be deemed an Event of Default under the Indenture or the Loan Agreement, and the sole remedy under this Disclosure Agreement in the event of any failure of the College or the Dissemination Agent to comply with this Disclosure Agreement shall be an action to compel performance.

SECTION XII. Duties, Immunities and Liabilities of Trustee and Dissemination Agent. The Dissemination Agent and the Trustee shall have only such duties as are specifically set forth in this Disclosure Agreement, and the College agrees to indemnify and save the Dissemination Agent and Trustee, their officers, directors, employees and agents, harmless against any loss, expense and liabilities which they may incur arising out of or in the exercise or performance of its powers and duties hereunder, including the costs and expenses (including attorneys fees) of defending against any claim of liability, but excluding liabilities, costs and expenses (including attorneys fees) due to the Dissemination Agent's or Trustee's respective fraud, violation of law, whether willful or negligent, negligence, willful misconduct or breach of this Disclosure Agreement. The Dissemination Agent shall be paid compensation by the College for its services provided hereunder in accordance with its schedule of fees as amended from time to time and all expenses, legal fees and advances made or incurred by the Dissemination Agent in the performance of its duties hereunder. The Dissemination Agent and the Trustee shall have no duty or obligation to review any information provided to them hereunder and shall not be deemed to be acting in any fiduciary capacity for the College, the Holders, or any other party. The Dissemination Agent shall have no duty to prepare any information report nor shall the Dissemination Agent be responsible for filing any report not provided to it by the College in a timely manner and in a form suitable for filing. The obligations of the College under this Section shall survive resignation or removal of the Dissemination Agent and payment of the Bonds.

SECTION XIII. Notices. Any notices or communications to or among any of the parties to this Disclosure Agreement may be given as follows:

To the College: At the address set forth for the College on the signature page hereof.

F-5 To the Trustee and Dissemination Agent: U.S. Bank National Association 633 W. Fifth Street, 24th Floor Los Angeles, CA 90071 Attention: Corporate Trust Services Telephone: (213) 615-6005 Fax: (213) 615-6196 Ref: CEFA Bonds (Occidental College)

Any person may, by written notice to the other persons listed above, designate a different address or telephone number(s) to which subsequent notices or communications should be sent.

SECTION XIV. Beneficiaries. This Disclosure Agreement shall inure solely to the benefit of the Authority, the College, the Trustee, the Dissemination Agent, the Participating Underwriters, and Holders and Beneficial Owners from time to time of the Bonds, and shall create no rights in any other person or entity.

SECTION XV. Counterparts. This Disclosure Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument.

OCCIDENTAL COLLEGE

By: ______Authorized Signatory

U.S. Bank National Association, as Trustee and Dissemination Agent

By: ______Authorized Representative

College's Notice Address: Occidental College 1600 Campus Road Los Angeles, CA 90041 Attention: Vice-President for Finance & Planning

College's Disclosure Representative: Vice-President for Finance & Planning

College's Fiscal Year: June 30

[Signature Page to the Continuing Disclosure Agreement]

F-6 EXHIBIT A

NOTICE TO MSRB OF FAILURE TO FILE ANNUAL REPORT

Name of Issuer: California Educational Facilities Authority

Name of Bond Issue: California Educational Facilities Authority Refunding Revenue Bonds (Occidental College) Series 2013A (Tax-Exempt) and Series 2013B (Taxable)

Name of Corporation: Occidental College

Date of Issuance: June 5, 2013

NOTICE IS HEREBY GIVEN that Occidental College (the "College") has not provided an Annual Report with respect to the above-named Bonds as required by Section 6.09 of the Indenture, dated as of June 1, 2013, between the Authority and Trustee and by Section 17 of the Loan Agreement, dated as of June 1, 2013, between the Authority and the College. The College anticipates that the Annual Report will be filed by ______.

Dated: ______

U.S. Bank National Association, as Trustee

By: ______

cc: Occidental College

F-7 EXHIBIT B

OCCIDENTAL COLLEGE CONTINUING DISCLOSURE ANNUAL REPORT

Operating Data

Non-Financial

Please answer each of the following questions:

a) Has there been a change in the name and titles of officers since the last annual report? (Check one)

b) Please describe any new material litigation, or a material result in a material litigation since the date of the last report.

c) Please describe any changes in the accreditation of the College since the date of the last report.

d) Please describe any significant sale, destruction or loss of real property or other material assets relating to the College, since the date of the last report. In addition, please describe any sale or loss of any collateral since the date of the last report.

Please update the following information for the most recent or fiscal year. Only the data for the most recent fiscal year needs to be included in your annual report:

Financial

a) Please attach a copy of your most recent financial statements.

b) Updates to the following information in APPENDIX A – "INFORMATION CONCERNING THE COLLEGE":

1) The Statement of Activities (if not included in the financial statements);

2) The table under the subheading "Faculty Summary";

3) The tables under the subheading "Tuition & Fees";

4) The tables under the subheading "Student Enrollment";

F-8 5) The tables and financial information under the subheading "Endowment and Similar Funds."

Listed Events

a) Please review Section V of the Continuing Disclosure Agreement and confirm that no Listed Event has occurred. Please describe any Listed Event that has occurred since the date of the last report.

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