Resolution 86-569RESOLUTION OF THE CITY COMMISSION OF TO.
CITY OF DONGWOOD, FLORIDA PROVIDING FOR THE
CONSTRUCTION AND EQUIPPING OF A APPROXIMATELY
SIX RUNDAEO THOUSAND (60 U,000) GALLON PER DAY
WASTE WAFACILITY A THE SITE OF THE CITY'S
SKYLARKWASTEWATER TREATMENT P PROVIDING
FOR T PAYMENT OF THE CITYLSNU..TING
INDEBTEDNESS TO FREEDOM SAVINGS AND LOAN
ASSOCIATION WHICH INDEBTEDNESS WAS INCURRED I
CONNECTION WITH PREVIOUS IMPROVEMENTS TO T
CI TY'S WASA
TEWATER T T
ENT P AND WATER
STORAGE FACILITIES ASAUTHORISEDBY ORDINANCES
NO, 683 AND 684 OF THE CITY COMMISSION;
AUTHORIZING THE ISSUANCE OF $3,000,000 WATER
ANDSEWER VENUE B E CITY O
$2, So0,000 OCH ARE TO
BELONGWOOD
FORFLORI
CONSTRUCTION OFFTHE AFORESAID
IMPROVEMENTS AND UP TO $800, C00 OF WHICH ARE
TO B USED FOR T PYMENT OF THE AFORESAIB
EXISTING INDEBTEDNESS,WHICR PREPAYMENT IS
NECESSARY IN ORDER TO PROVIDE THE HOLDERS OF
THE WATER AND SEWER REVENGE BONDS A FIRST AND
PRIOR LIEN
ON THE CITY'S WATER AND SEWER
OES AS SECURITY FOR THE BONDS;
AUTHORIZING T EAS SECURITYING OF THE
TY'S WATER
AND S REVENUES AD
BONDS;
AND PROVIDING FOR THE RIGHTS OF THE HOLDERS
THEREOF.
BE IT RESOLVED BY THE CITY OF LONGWOOD, FLORIDA, FLORIDA:
SECTION 1. ORITY OF THIS RESOLUTION. This
solueOputsuaH' t [i_ i ad.R_She provisions of Chapce. 15D,
Florida Statutes, as amended, and ocher applicable provisions of
law.
SECTION 2. £TIONS. The £O llowinq [ ssha11 have
[he follow i nq m tngei Ith ie Resolution unless the text
otherwise expressly tequites:
(a) cage" shall m xty-Five percent
which percentage shallo be subject t e.1-1meIt t the e 1n a
ange r the M m COrporaee T the Pref erenceat
Reduction R uch a the B cage shall be
equal c thetfollOw ing: xtyfive percen tr(6i8) mulciplied by a
fraction, the n of rwh ich i equal t e plus ib
_it Tonal o andro er qu atte' pe'Cent (1 1/49)rpe,Ra
multiplied by [one —the M Otporace T x RatI effect
the a of id]ust—tj plusx(TEFRA Adjustment i effect o
the d— It ad]ustment] and c e denominator of which r equalo to
(Pt e plus a e qu ar— pet— (1
1/48)eperta um7 T_iiplieaoby [Oneam the M olpo race
Tax rnoef feet on the dace of issuance of Cher Bonds? plus
[the T.— Milltlllt il effect 11 the date If ill .... I If the
_d', — shall b, adjusted .., ... tally —
change
i, the Maximum CI1pI1ItI TI,—ti
If [he effective date .1 1
Rate 11 any change
in
the
Preference
_fIt.III Reduction RIII I —Id upon
the -- E—Ill.
Sn other words,
]JI LDate
a—T.x R— D t.I,
B... m 1
l,tIIf Adjd.m ..t � 1-t—illl r-TIf1I Ad]—I.lr
T11 I I'll 11
f C. 2l .. It.
'tTmill. Corporate Tax Rate is dII1IIlId
il,9 the Cost If Funds— If the d.t. If
t, t"Ity-11111 the I I'll, but the
..... —lid dl adjusted
Reduction 11t,
— —td, —Z
follovs:
ds"
hall m
and Sever Revenue
I_ Id: _ I Id t. I. I __t t.
this R and .., additional parley bonds d—.ft- issued
in thl -- I-Ii. provided.
'C) 'Code" -I —l—I R .... I Code "— I'll, en
ded, It I. c I ":,PPIf _y future I.If the
United ;t.t.l of America
....."dq_,lti.g eo
ceps hereof,11 1-1— provided l—I It t: .I _ dy _t_
_,Igll thereof —-i-I It It firth
ehe applicable regulations __ If the D.PlItIllt If th, T—I—y
— ilIding —ble
final rulings
[ions
.. temporary
regulations),
gIl't i.- ), the pp"..III 1inIl If thd Internal
s-1111 (including published Revenue Rulings and privateelecte[
applicable
---- 11 mean the City ClIf the
Cityy If It., ... I, —
") ... I .. ..... . the Ct—t—
e and p—id.d Idt — —t-I illil hI _f
by which i. qt., to the
t ... I t.., Inc.expense oySunTcust links, — —
immediately preceding calendarcalendar
� tdllip—fourd by four (4),
the
denominator
....... . tl ..... � -f --t
auks, Inc. for
odic
ec, as
—h — ref sect i quarterly
financial statement of
—T—t Banks, In<.n
Cost 11 lltll sun Tlt- it,;rI I .-t—
a rise es for preced rn9 quay ter
ample, based o [he Y financial s
.....
for Su
che
Cost f —ds would bece-alculaced—ash follows:
ost of
Funds = 4.78%
(g) ^lef aide I shall m Brest a< the rate of
Prime R— plus two b-1.1
(�) -1—d 'It"shall I'llchange
ially ..... .. ...... to
adjusted
_ _, i— —tt y 4 . i � the .... —
C11P.I.- T.. R— — th, Pt.f.t.— .—t
of the Tef
L us
wn ill the Bonds a
he Fixed R— —11 be �3-tld 1.1 ... t-11Y f
the efl-t i'. d of y change
R.- —t91 thlPreference Reduct ton R e based upon
th. following f-.— —itq the n w Maximum Illpllltl T. Race
and the 11 _bR_:II
_.lf.—I multiplied by (I Tax Rate
`b
Ra
te = 11.44 T— Adjustment
Tax R.
I .. ..ample,the 1111 11 11 11 the 1 11 11
cs decreased
ehirty-seven percent (3l8) but the Preference Reduction R
[emalns unchanged, the Fixed Rate would be adjusted as follows.
New Fixed
Rate = 11.44(1-.3]) s 4.]8(.20)(.3])
New F xed
7.568
(i) xed Rate Period" shall m the period from the
est. i of the Bonds through and including the s nth
aryudate of the i of the Bonds wbi le such Bona.
bear vinterest at the Fixeds Rate•
(j) "Freedom Debt" shall m collectively, those c
Promissory n of the Issue[ heldbyF eedom Savings and L
Association ine aggregate original pc inc 1pal a of $ .....
uthoric ed by Ordinances 11. "' and 684 of theul which
notes a e Becured by a lien on the issuer's Watersandr Bewer
11) Rolder of bonds" o "Bondholder" o any s mila[ t
shall mean the registered owner of any anding bond o[ outstbonds.
(1) '1... r". shall mean City of Longwood, Florida.
(m) m corpoc a Tax A the mu.
a rginal Federalmt a (currentlyt469)e applicablex[
1
orpor it
s t forth in Section L1(b) of ehe
na 1R ecCode of 1954, a ended, a uch Tiu.
marginal Federal tax rate shall beamodified from time to time.
(n) tuhs. Plans and Specifications" when used with reference co
improvements comprisi ng the Proj ec [, m [he Plans and
Specifications prepared for the Issuer and of iled with the Holder
the s may be r sed from time to time during the
installation of the Pcojecc;
(o) reference Reduction R shall m ethe percentage
reduction (currently 208) to be applied [ thea allowable
a deduction u r Chapter 1 of t o Code with respect e any
financial i tu preference i m (as s cms defined rn
n 291(e)if
I tbe Cods presently set
291(a)(3) of CheCode, ae1 uch percentage [eduction Shiltbe
modified from time co time.
ts (p) shall m the r red from e
by S anks Ce lnc., a s pr inc ipal aof f ice i andoe
Florida, or by the co cporate s e prime r el(wh ich
only a bench m s purely discreti.onaiy and
�., ily the best or lowest i icharged
borr ow ingccustomer s of any or b— of Sun Banks, Inc.).
(q) ro ject" sha11 m be imp coveme nts m o be
eea ehe Pl proper des ty eEibed o xhib Eit A ached thereto
a ndmade a pact he[eoE, nc lud ing� but n t limited tt the
and equipping of a app[o tely "" "o gallon per
d aysw s desc£ibed [ mthe Plans and
Specificacions prepacedtEo[ the issuer.
(c) "Reg is ec ar" shall mean the Issuer.
(s) "Tef ra Adjustment" shall m adju-b— equal [
e p[odeet o e following: [Cost of shall —
multiplied by the
sea��m Cocporate Tax Rate] multiplied by the Pte£e£ence
c ion Rate.
rn omec woc as,
t f m Corpocaee ref e[ence
Adjustment = [CosFunds J. [aTax Ra[e X [Reduction Ra�
Foc a ample, based upon onditions a of the date o£ .ill
rssuance [he T.— Adjus[menccweula be calculated as follows:
TEF
Adjustment = 4.78 x .46 x .20
Adjustment = .a4
� ample, a ing the Cos[ of Funds a of the date of
e (4.]8), ifsthe M m Cocporate T x Rate Es decreased s tbic ty-s n per (3]8)o1u [he Preference Reduction R e
n.hanged, thetTef£a Adjustment would be ad jesced as
follows:V
(t) fable Rate" shall m the Base percentage of the
p[ovlded, however, theeV table R shall n [ be
lesse Nane5.... per a [ gceate [[than 9.o8eper a
provided 1—ther, howeve[,nehat said m and m
for C able R shall be adj--dni Vche a Eofma ange
theeM o[pocate T [efecencetR n
111 e and m sballobe [o
ad cedna 11yha lthe e f fecciveodatetof a change i
the MaxemumtCorpo[aee Tax Race 11any change rn the P[ef e[e nce n
Reduction Race based upon the fe llowin9 fo[mul as:
NEW MINIMUM RATE = 8.9 multiplied by (1 um -
orporate Tax Rate) (Tefra
Adjustment)
NEW MAXIMUM RATE 15.85 multiplied by (1 - um
ClIporate Tax Rate) + (Tef[alm
Adjustment)
For a ample, a ing the Cost of Funds a of Cbh dace of
t(37%)ubut
e (4.�8), if CheoM m Cocpoi s decreased
s thi[Cy-seven pet the Pr eferencetReduction Rate
u
nchanged, themin imam and maximum rates would be
adjustedas follows:
NEW MINIMUM AATB = (8.9) X (.63) + (4.]8 X .37 X .20)
5.96
NEW MAXIMUM RATE _ (15.85) X (.63) + (4.78 X .37 X .20)
= 10.33
(u) and Sewer Revenues" sha11 m all fees,
and a ing sWa including_c n fees, development a
fee and all other ings derived by. the Issue[nf[om
tbesop—ti— of its iwater andesewer system.
(v) ea[ "Y" o "fiscal year" shall m the piod
beginning October I[and ending Septembe[ 30n e[
(w) Words impo[ting singular numbe[ sha11 include the
plural number i ea., C and v and wo ids imp,[tin,
persons sh.11 include firms and corporations.
SECTION I.
FINDINGS. It is hereby found, determined and
declared as follows, that:
(a) The Issue[ n and m r
and s system and der ivesnr stf[om rhea[ ns£ees ate
talse and other cbarges madeeanducollecGed fo[athe se[vices
offset system.
(b) m
The Issue[ has p[eviously i red the Freedom Debt,
of which the s of 5 443,657.58 pc Inc ipal a u...y
and ing andunpafd, which de be w r
r edi n I [ht imp[oveme nes t the Issu e['s w andsew.[ system andis
s crated by the WIte[ and Sewe[ Revenues.
"I It 11
ndry and e val t the i medlate
pro teceion of ehehe—, safety=and twelt ate of th. ti tizens of
e Issue[ that ehe[e be 1 red and equipped a
app cox ima to ly 60U gallon -pet sdaycwas<ewater cr ea tmene Eac iliey on
6
property of the Issuer located a [he Issuer's Grant
s C[eet/Skylark Wastewater Tcea cmenc Plant.
(d) The c and equipping of the w
t fat ilftysa cof a public benefit t the cct czensrof the
It .... . Id cons «Cute a valid munrc ilid
l purpose.
c of the c iacqui i
of [he Project ist approximately $2,500,000rr the aggreq ate iton Such ct shall be deemed [ nclude the c tof acqui [ and
tallaeion of any fixtures o equipment orprope r tie s deemed
ary o therefor; fiscal fees; ai ch itect — and
legalsexpense sinexpefor e of c and of r
expert s foc plans, _if
if is ationsaand s veysstr s adminiat fi
ert hxpeves
expand s other enses mayube n ary o
r ncide oral [o [hef financing au[hociz ed by ch issResolu<ion.
(fj Zn older foc ehe Bonds to be s red by a [t lien
all Water and Sewec Revenues, the F eedom Debt m tbe prepaid
c pcioc t nof the Bonds and the I ruheceby finds
the rbes[r of the I andsc r s for
thet I ssue[s to prepay the lieedom De bt, swhicM1 prepaymentshall noe
exceed $500,"0.
(g) E cept for the pledge t n for the F eedom Debe,
ehe W and Sewer R w pledged and will be
sufficient t operates andum otheo Pcoj ect and to pay ehe
principal of and i rt he rBonds to be t ued pursuant t
ehe provisions of thissR solution a the s e [ and become
due, a other payments required tosbe madembym ther ptovfsions of
this Resolution.
(h) The principal of and i the Bonds to be
ued pucsuant [ this A so lut ion rands all no the, payments
provided f this R solution will be paid solely from ehe
t
and Sewec A s he ce in pcov ided, andtot pi will never
beeequf red to id, xof any n any tea lersonal
property i the Issue[I. pay the principal of and the
the Bonds [o be i ued pursuant t this R solution It mak I,
other payments provided foc i this R solution; and that the
Dods i ued pucsuant t e of tthis nR solution shall n
lien upon any of the proper t iesM1e Issuer, e ceptnt ater
and Sewer R any part thereof oe upon any other W
property whatsoever of the issue[.
(i) 5 ank, 1— nal A submitted C e lowest
d best bidui otdance withs checi o bidhpubl ished
by the I May ll, 1986. The finalat of the purchase
of the Bondsr asnprovided and s t forth i thissR solution were
omplis hed through negotiations with S ank,e1 nal
[hereby making this a privately p lbbida negotfiat ed
s alecia othe e [equi d by law, t e purchase of the B
s hereby a a[dedst na lhA " basis
of its rn itial bid atdu chess ubsequently negotiated nte[ms.
Chapter 218, Flocida s the I r hereby
makesathetEO Llowing findings wieh reg artist [he negotiated aspect
of the sale of the Bonds: (a) negotiated sale of ehe Bonds a
pci equal t the principal a c thereof plus a ued r
Ero ethe date of the Bonds t thendate of the salecthereofnwi list
best effectuate the needs ofothe Issuer; (b) oegoe iated sale of
the Bonds I. ehe P rchaser thereof Ss t the best r of [he
n gene[al' due t the n of the i ,nprevail ing
l leer es[[r and the marketabili<yeof [he Bondse and
spec allyefor the following additional sc
opin dof the 2 if pe comtitiveid bdi ng w en
eed upon,
It w did have b..h, and would be, impossible toflnda ny
pui Chas [ foc the Bonds o ompet e bid basis which offered
onld offer m e favocablecphithasev[ (it) the
opin of the I the r sthenBonds r
belowoi srfor s mila[eobligatiI_ and could n tt ber
lowered ne ns if r competitive bedding had been It were to be
.til Ez ed,ve
SECTION 4*
oLUTION mI.
s id eiat ion of t.. ceptance ofCo NlUds authorized to be
ued hereunder by those who shall hold ehe s e from e
this Resolution shall be deemed to be andms hall c Lute
t between the i and the Bondholders; and the[t
and ag reementss he rein s t forth to be pe[formed by the
I ssuerns the equal benefit, protection and s icy of
the legalaholdersdof any and all of such Bonds, all of which
If equal rank without pcefe[ence, p[foci<y o
of any of the Holds o any tithe[ checeof except as
expressly pcovided therein and he[ein.
SECTION 5. pu
AUTHORIZATION
of HONDs. H.....t and rsuant
the provisions I'
I— R olds of the Z o be
known a ity of Longwood,eFloridanW and sewer Revenue
olds, S s 1986" a e hereby authorized to be i ued in [he
aggregate principal amount of Three Million Dollars
(53,o0D,000.00).
sHCTION 6. .SCRIPT ION tie so Nos. The Bonds shall be
dated the date of i ial i shall m n August 19,
1998 (unless s rnp repaidsa tfor th hecein);o sh all bear
the r e forth i [he Bond, which i shall
betpayablet per iodically c ing February 19, 1988Yeandto the
dates s t fotth i the Bond; shall be i ued i ially a ingle
fully -registered Bond; and shall be payable a o principal s
e (12) a ual i tallments c ing August 19, 11.1 which
tallments shall besin ehe amounts and on the dates set forth in
the Bond.
Such Bonds sha11 be payable with respect to both p[inc ipal
and i the office of ehe Holder and shall be payable in
lawf ultmoney o£ the Unitad States of Ame[rca.
SECTION I. TION of BO ... The Bonds shall b
red i the a
n Cthe -I.
[ by— Mayor cof
tof the Issuer and
slq ned anda ted bysthe City Clerk, and the por It
ea lof the I a facsimile thereof shall be affixed
thereto o reproduced thereon. The facsimile signatures of the
Mayor o the City Clerk may be imprinted o reproduced o the
onds, provided that at least o sig na required to be placed
sbereon shall be "Illy
subscribed. any o of
the officers who .n all have signed o ealedsany of the Bondse
s hall c o be such officer of the Issuer before the Bonds s
signed Id,IIIshall been a wally sold and delivered, such o
onds may n rt he less b soldc and delivered as herein provided
III may be i wed a if the person who signed o Baled such
onds had n sed to hold such office. Any Bonds may be
B.—
and sealed on behalf of the Issue[ by such person who a
the a ual t of the e cation of such Bonds sha11 hold the t
propertofficemi the I although a the date of sucn Bonds
such person m.ynnot h.— held such office or may not have been so
facsimile signature of any person who shall have been such Mayot
r City Clerk a any t after the date of the Bonds,
it hs rand ingt that nemmayn111, c sed to be such officer at the
t[me such Bonds shall be actually sold and delivered.
N 8. NE . AB ILII. AND REGISTRATION. The Bonds
vs sued hereinder shall be and shall have all of the qualities and
the Laws of Stof Florida, and each s ss ive holder, r
.bti ng abyof es aid Bonds, shall be c nclusively deemed [o have
..teed that such Bonds shall be and have all the qualities and
c idenes of negotiable i under the law merchant and
the Laws of the State of Florida.
The Bonds shall be registered a o prior ipal and
the office of the Regis[[a[C o the office of any
otnerereg is tta[ who sM1a 11 be duly appointed r by tr solution of [he
a rd, such registration to be n ted o the backeo
hall be valid unless made a aid office by the registeredno
—by his duly authorized agent or representative and srmilarlyer
noted on the Bonds.
any Bond snap become m eilated or be d toyed, stolen
c los the Issuer may, s discretion, end deliver a
w Bond of like t [the Bond . til-1, a rayed,
Bolen or lose, t xcna nge and s n for sucn m tila tea
upon s uch m tilateduBona o
a.ars.e nc.aiccnc lcne eo�d destroyed, .—II or
lose,e endf upon the holders furnishing the Issuer proof of
ownership tnereof and satisfactory indems ity and complying .—
Ill o
Bonds s eyed shall be c celled h
by t dry of
the Board, 2fuany send uch eonds shallahave ma to r Id
I bera bout to
Scad of issuing a .....i.... Bond, the I may pay
tbb upon being indemnified a aforesaid, and if Us uch Bond
he loste stolen or destroyed, without surrender trier eof.
Any such duplicate Bonds i Ued pursuant t this s
shall c riginal, additional c Ual obligations on
the partnof r theel whee her o ther lost stolen o
�. destroyed Bond besa any t e found nby anyone, a .th duplicate
Bo— sba11 be e i[led -t teq..l and propor e benefits and
ights a o liento and s and s ityr fort payme nt from the
funds, s hereinafter pledged c[o [he same extent as all oth—
Bonds rs sued hereunder.
N 10. FROVIF—d — -MF—b. While the Bonds
bear i[tc or pe[he nalty prior
Variable A CheBonds may be redeemed
ithoutpremiumt the it respective s red daces
of mUity, the option of the Issuer Upon the giving of
thirty(30) days notice to the Bondholders.
While the Bonds bear i [he Fixed R the Z
may [ all o a par of theeBondsapr for e icy upons[her
givingdo Em[hircyr(30) days n the Bondholders and i uch
[he Issuer s 1 pay t tithe Holder a prepayment penalty i
egaal t n(I) the t Cal a of r that would n
havebeenpaid o [he a oof Bondsnbe ing pcepa id from [he date
of prepayme nth. end oft the a xed R iod had ene e xed
Rate been a e per equal t theaF xedrR effect on
the dace of paepaymentnd xvided by (one m the tMiFU
ocporaee Aate( less (ii) the a nt therpcinc ipal p[epa id would
^' yield if tine principal a oupeepa id w the
dace of -my'— t theoU.S. Treasury s ,shading
icy date c it
ing with the end o£ the[F xed R iod or
t the e there a U.S. T u y Securities havingea
ityvdate c cid ing with theee rid of [he Fixed R e Feriod o
eheu date closesttt the end of the F xed R iod, — trading
the s ondary mb"bt i Sable vo_. b a price within 58
f par ehby partial prepayments o the Bond shall b
t less t n 'I"" BU
I""Bo o teg cal multipl es rof a5,000
[hecel—, and shall be applied to the Bonds in rovers. order of
[he staged ma[urrtaes.
58CTly 11. FO[EM of BONGS. The Bonds snail b
s ubs Cant is i.. tine following form, with such o
and v may be n dry and des it ablesandsau[hoB izedns
c pe rmi ttednbyaehi s R.solueion or by any subsequent resolution
adapted prior to the issuance the[eo E:
a
KNOW A x
BY THESE P th- the City o ong... S,
Flo[ida, (heceinaf eer ref eccedt S"Issue["), for value
ved, he[eby p[omises to pay [os5un Bank, N aaI
the [e9ist...d ho Ldet, o [egi s t e[edla signs, solely
Itomc the[ spec ial funds hereinafte[ me ntroned and not otherwise,
the principal s uof
($ and to pay, solely fro aid special funds,
aid pcincipal s the t e pee a as
h e[elnafte[ see forth, payable as sec forth hetei-
'Accrued i tM1e unpaid pcincipal balance o the
Dods shall be payableto n[M1e following a February 1%
1988: August 19, 1988; August 19, 1989; Auq..t 11, 1990; Anqust
19, 1991; August 19, 1992; August 19, 1993; Feb[uaty 19, 1994;
August 19, 1994; February 11, 1995; August 19, 1995; Feb[ — 19,
1996; A.9.st 19, 1996; Fe br ua[y August 19, 199J;
February 19, 1998; and August 19, 1998. The p[inc ipal o the
Dods hall be [epayable i welvs (12) cons ecut[ve ag9[e9ate
annual installment paymenes as follows:
Pri—a.1 P y
August 19, 198] $100,000.00
August 19, 1988 $219,048.Oo
August 19, 15338,095.00
August 19, 1-990 ,338,095.00
August 19, 1991 5338,095.00
August i 1992 $238,095.00
August 19, 1993 5238,095.00
Anqust 19, 1994 5238,095.00
A.g... 19, 1995 $238,095.00
Auqust 19, 1996 5238,095.00
August 19, 199J $238, 095.00
August 19, 1998 $238,097.00
oth At i.. ipal of and i tthis Bond a e payable in lawful
ney of the Unrted St.—.1 A. rca ac the ptinc ipal office of
the Bolder.
o prepaymenf p[i cipal of the Bonds a made a
herein pe.. it— the£f nal [ tallmenc s n Au
Fro- 19, 1998, upon the pcesentatlon and su[[ender he[eof.o
the date of [ of the Bonds . til c ...th
�. evy a thereof b
cheat .npaiase
pcincipal b nashallb _ E xed x
de Efned i Nex solution eosaub3ect t adjustments a
p covided in the Aesol.tron tha—ftet chetincecest cat. on the
Bonds sha11 be It the Vllilble Rats defined i the
esolution. If the p[inc ipal o£p rem ium, ff anyR o on
his Bond sha11 n t be paid when due, then the a oftsucht
unpaid pri cipal of and premium, it
any, and t thenextent
pet led by law the amof such unpaid v sha11 beat
tIt (astdef fined i the Resolution) plus t
perce nC l28) Ppemea m from the due date thereof until paid In
full, such r e being referred [o herein a the "Default R t and a o be paid i espect of said Default Aa[e he ing
c of err ed rtt herein as "Default Inteces
In the e there should a of
xability" (thee" n") (as[he[elnafCer ndefined) the
thetBond sa(the "Adjusted from
o1—Ibility"o(II hereinafter defined) and through the date
of payment in full of the Bonds (the " nclusion P iod") shall be
the s defined 1 the R on) pine a additional
e per ceneR(18) per a shall be ndeemed e
red upon thendate of 1 ea by the I nal R e
cof a ory "till
of sdef iciency whichta
effectsthat thea in retest o athe Bonds i ncludables f or tFedecal
x purposes in thengross i sof the Bondholder o upon
theor eipt by the Bondholde[ of a copinion of a pally[
cogntzed bond c approved by the i s(which approval
shall n t be u nably withheld) theeect [Mae i ff
the Bonds i nc ludable for Federal i x purposessi sthe
gross i of the Bondholder. the e of the o
of a the Bonds shall bear i theuAdj us led
Rate fromr thtDate of Taxability (as hereinaf teetdef i ned) and
through the date of payment in full of the Bonds. In the e
any such D rmination is subsequently e sed o sldeen the
shall be [ sed i mediatelye land r vely to
CheeO of tT xability, asche[einafter defined) t to het[ of
I— f med lately preceding the Date of T xability,
andeappropr late eepayments of e (if any)ashall be
pal the 2 The [ sof nTaxab i l i<y" m <he
a. liest effective date a sof which the i st payable o the
onds i ncludable i Che gloss 1 o[t theBond holder a
salt I,
c
o r f any cv as giving r the
The 111—agreestoupayany penalties vo arty
I.ing by the Bondholder due t the failure of
then andhalde[xt nclude c e Bonds rn gross r
fo[ Federal i x par pal I.
par of the Inclusion
PI—dend ing nwith the date oI therD Any a
s lilting from such a and any penalties in
,I.It-o[ i otherwioetshallibe paid o the i
payment dace n -a ing the D
and the t lied i nshall
e deemed I.
nclude andnm vntecest at thetAdjusteddRate
du[ing any Inclusion Per iodan
As provided i the R solution, the I ligated t
pay c the Bond Fold,_ nsthe o
of a Deeerm vnatvon, If
ssuchtDeterma pat ton _oc_curs su bsequenerco
payment of the Bonds in full, ehe Issue[ specifically agrees and
ith the Bondho Sdee, to pay t ach such Bondholder, as
indemnity, s additional s s provided Eounder the
so_ton upoI — [ t forth therein. in addi[Eo_ t [he
foregoing indemnit ie wand payments required by the ..........
if
any change in law o the i erp[etatlon [hereof o s here of te[,
other than a change i the M muCo[pora
Rate or .......b— Rbdb-i.h Rate (as those C e defined in
the solution', and, a salt t elf, the Bondno ldec o
forme[ Bondholder c pin of a qualified t se1,
ceptable C the I andnthe T the c which
n
opinion shall be paiduby <he I sthat such change will r sole
(1) a el im ina[ie nr reduction, disqualification
r ills ofr"1 htwt ccl aim any deduction o redit for federal o
c local i x purposes of such Bondholder o of anyc
affiliated groupnofmwh i ch such Bondho lde[ c ember
(hereinafter re Eerred a s"', and/o[o(2)athe mmposicion
of any ptef erence, m other special t under [he
federal, s [ localm[ s (hereinaf eecare Eetred e
x"), andasuch L s directly o ind is ec tly related t
such Bondholder's ownershipxoE the Bonds or the cure ipe oY income
ach L Ts
x by i ing the [ t payments co be made
[ pre uslym.bi t uchsHolder withf e spec[ t the Bonds by a
vwhich of ter deduction of all t required to be paid as
suit of such Hoid er's r eipt of such s (including,
ath— limicacion, any c ing from a reduction ihh
which would otherwise be allowable a a deduction) will m _tarn
ondholdec of ter -cal e c yield and o -all-net
ai
after -tax cash flows r salting from the holdingeof such Bonds a
the s e levels which would have been realized if such change i
e cpcetae ion thereof did n All calculations o£
ach Holder's after-eax e c yield and[o [all n after-tax
ash flows shall be dece[m ined ro the basis of the a umptions
chat (1) the Bondholder would have realized [he a mud t
benefit of the deduce ion o redit if such changes in law o
ec pretat ion thereof did rn and (if) ehe Bondholder has
arginal federal, s and locals corporate 1 es
ich a hlghesctmac h.1 c imposed by c
ipplicablett ach Bondholder. Thus foregoing indemnifications
shall repce ing obiig anon of the x whlch shall
e payment ofcthe [Bonds in full and discharge uof the
Issuer's other obligations under the Bond and ehe R solution and
shall effect"" r rrce n full foand ct uto expiration of
any
appl icables of limitations (or limitation period)wicM1
I—— — C nclusfon of r sthe gross 1 of any
ndholderi Any s spayable h s under shall h
payable by ehe I a date seL_b bythe I--
but in no
event more than sr xty (60) days after the Be<erm[nat[on.
r o
ithstand ing anything else E eh Es Bond o [he
so lu tNonW ingency ^shall [he a t paid o
agreed < e paid [ e holdecro4 [he Bond Eor u �ufo ..hear....
or de to ntron of the money to he advanced eheceundec exceed the
M1 ighest lawful e e pe tmiteed under law applicable thereto by a
of competent jut indiction. If, from any c c whatever, the fulfillment o£ any pro of tM isBondae o the
solution, a the t e pet£ocmance of such provision shall be
due, shall i volvaynt i e pmeof which e eeds
highest Sawf ul i o determinedc the n[i o factoc the
obligation eo be fulfilled shall b ced t Pch highest
,� lawful [ate. If, from any circumstances whatever, the holder of
eed such highest lawful [[ the potion thereof which would
t
bete shall be plied[ the reduction of the unpaid
principalba lance due unapdet this Bond and not to the payment of
This Bond i of ab of Bonds i the
aggteqate p[incipal a o£ $3 t0oo,000 of like date, t and
effect, e cept a umbel, I ued f va11a publicurpo pse,
acquire and c and equip II oapp rouimately 600gallon
pet day w t Tacit l[y on property o — nea by the
Issue[ andsfot apu[poses [mnc idental ehereeo, and to prepay the
of and to full compliance with the C and at eves of
the S so l eof Florida, and a tionduly by adopted by the City
Commiss ion of said Issuer— 18 th day of August, 1986 (the
be is ued and o standing under the conditions and t rms set
for Ihsi the so R luta ion, awill c o be epayable
"Illy
a o both ptincipa le nd and t etnfromea a by a
pledge o£ and lien upon the Water and8 ewer Ae venuescuas such
issuer within the meaning of any constttue tonal, statutory or
of the Is r for t e payment of t e pti cipal o£ and t
this Bondor the making of any other payments p[ovtded Eor [nethe
Ili, Bond that the i evy t any n n any
teal estate or personal properly in chea25suer to pay[the o
upon any other properties of the I any
par thereof, b shall constltute a lien only on — Water and
The I or has en red i oith the
holders of CheBonds ofthis i ,f or athec termsnof which
eefe[ence rs made to the Resowcion.
s hereby c tified and recited
that all a
onditions [and th ingse[ egaired L o happen and to be
per Eo [med, peecedent t and i the ev of this Bond, e
have happened, and have been performedai regular and d e fo[m
[egat
and t ired by the L sand Constitution of the B of
Flol idae applicable there to, andthat [he i the Bonds
doe iol ate any constrtutvonal, se at uto rynor oche[
l tation
This Bond 1 and has all the qualities and i cidents of
negotiable v and ex the Law m [chant and the L the
state of F lorida�,mands[he original holder and each s ve
holdex of this Hond shall be c nclusively deemed by eheeesi
c epta eher eof to have aq[eed ihae eh is Bond shall be and
have allcthe qualities and 1—de— of negotiable i s
t under the law merchant and the Laws of the State of Floridan
This Bond i subject t optional redemption by the Issuer
any t upon the s ing of at least thirty (30) business
days the Bondholder and upon payme of a prepayment
penaltyty mu
if "y
. s
a specified i the R solution. Any partial
prepayments o the Bond shall be i at less than
5100,000 eg[al ltiples of 5,0➢0.0B thereafter 0 r[thereof
and shall Beappli,d to the Bonds in inverse oId- of the stated
This Bond shall be registered a o principal and i est
.... with the provisions endorsed II—h. No B.hhs
shallBe [eg iste ced [o "Bearer."
IN WITNESS WHEREOF, the City of Longwood, Florida has
and and has c sed the s o be signed by i
Mayord andva ted and c siy ned wiehte he m al or facsimile
s ig na of ti icy Clerktand the m ual oc facsimiled E it
ocpo[a ealt<oC be imprinted hereonaall as of the /E da ysof
August,t1986.
CITY OF LONGWOOD, FLGRIDA
(SEAL; By:
aYo[
AT. AND COUNTERSIGNED:
APPROVED A511 FOeel AND LEGALITY
icy C
Ann E Colby
15 L%e«o�4 nx
SECTION 12. BONDS NOT T INDE
BTEDNESS O THE
ISSUER.
The Bonds sha11 n t be o n 1llt ea inde btednessof the
Iss _ but shall be payablesolely from the Utilities Service
s Merein provided. No holder or holders o£ any Bond i
heteundet sha11 e t have the right [ ompel the e ofot he
ing power of the Issuer to pay the Bonds o ehe c
thereon of be e i<1 ed to payment of such principal and re
from any other funds o the Issuer except the Util is ies Setvrce
Tax as prow ided hereinE
BECTION 13. BONDS SECURED B E OF W D SEWER
REVENUES. e payment of the print ipal£ob and i all of
the Bonds shall b red forthwith, equally andtr tablyn by a
first a d prior lieneo the W and Sewet R The Water
and Sewer R sufficient Go payethe princpal
Of and i the Bondsoand t make all other payments
providednforei this R 1-ion, is hereby i cably pledged t
the payment ofnthe principal of and interest oD _ Bonds hereino
authorized as the same become due.
SECTION 14. RRLICATION OF BOND PROCEEDS. All m neys
wed from the sale of any o all of the Bonds originally
utb1—tS and a ued pursuant to this Resolution shall be
disbursed as follows:
(a) There shall first be paid, o re tbeshall b side
and held for such payment, all e red by o ne behalf
of the I ecoichxthe5e sc of the Bonds,
nclud ing5bu[n tlim is ednt any feesandexpenses o£ ehe
Issuer's c sel, bond c Bel, r fal purchasers' c sel, the
f print ing o e ......
r eoaring the Bonds, if oany, ehe
"Itof predating o Drying and filing ehe i
iemplaced he r e byrandcany oe her expenses i redum
th the Bonds o the sale and i f eather ymentne of
shall be made upon submission tosthenIssuerr ofstatements or
cnvo aces eh--- re.
(b) There shall -It be paid, o there sball be seaside
and held far such payme " a Buff tc lent a o prepayinfull
the Freedom Debt, but not in excess of $Sh , h..
(c) The balance of such proceeds of sale of the Bonds
sha11 be deposited by the I ank,
National A
to be known a theacU till ti esSCon st.uct ion
Fund", which shall bekept separate and apart from all other
funds of the Issues . All m neys tany traid Construction
Fund shall be c usly s cedc [hes ms deposits
of s and m cipal fundsea requited tobemsecuced by the
p.esent Laws ofn the State of Fl..ida.
TM1e holders of said Bonds shall have a Lien upon all
neys Cons is act ion Fund a til applied as provided rn
this A solution; and such m neys shall be used only for the
and ab
qui of the Pro}ec I. provided i this
so lue ion�nand £o. n cne. par Pose. If for any [ the.e
shall be a expended balance r the Constcucci.n Fund of ter
the completion of the acquisition and c of the
.oject, then such u expended balance of nsa idcBond proceeds shall
be used to redeem the Bonds on the next practical payment date.
All such of the sale o the eonds s all b and
e trust funds proceeds for such purposes; and ther en is Hereby
tedua lien upon all such ...... u tiI s applied as provided
herein, rn favo[ of the nol ders of the Bonds.
w i11 be made of the proceeds of t onds which, if
nably expected o [he d o£ the
ondsusw uldsc .the s o be " a rbitragee bonasssw i thin the
ing of ene.Code. TTemIssuer a all t while the Bonds and
t henr thereon a ing, will comply with the
c equi of Section 103(c)a.1 the Code and any valid and
applicablet c ales and regulations promulgated [hereunder.
'it'
respect t n lo3 (c) of the Code, the Mayor of
t IdSt he r� Arbitrage C ofirate"
wM1ichsc represen<ationsso£ the Issuer a arbitrage
nwhich ce presen tat ions by this r orpora ted
n er einsand made a pace hereof. etheei yof the
Bonds, bond c sel shall re nde[Fa oopin arbitrage
s based in pact upon the r epresentat it ons c ned i the
Issuer's Arbitrage Certificate. The Issuer agceesthat i ing
w i11 do s ompli... with the rlpre
edi [the Issuer's Arbitrage C cif irate and i ..dance
beh athe provisions hereof. neys c n be r ted w
r egacd t the yield 1 of 5 n Al(c) o
only e x
the e t pe.mitted by the applicable regulations .
.hitld State sT sury Department promulgated under such 5 t[ on
1, lo3 (b, of the C e(including any .egulations proposed to be
promulgated thereunder) a the I— presently e may from
rme hereafter be amendeam modified, eoppie b-1 or
rev rhea.
The Issuer shall have the sole tesponsibiii[y for making
s hereunder and for compliance with 11 applicable law
ands regal at ions.
Sabject t [he preceding paragraphs, the Issuee, t the
c pet ted by law, may, pending application [hereof a
Fr ovided herein, invest mneys on deposit r [he Construct ion
and; provided, however,_t any such i shall be
omplis hed <hiough the c etc l investment department of Sun
Bank, National Association.
Such i shall be deemed to be a a par of
the Construct ions£undtand any n [tg ainereal ized
I... such f s between i tmpayment dates shall be
eedited t uchmfand, and any n tr loss c sc1[ing from such
cnvestmen[s shall be charged to such fands.
SECTION li. A PLSCAT ION OF CONSTRUCTION £ NOS.
isbursemenes from the Cons t[uct ion Fund shall be fully
documented by the I e to such form and c
i sf ac toty t [hes Bolder which documene ationeshall s et forth
the of � w tanal, ehe person oc persons t whom sucM1
rawa i[hdl is payable,, the a the a fehdr aI and a
t fffcat ion by the Chief £ ial OEf icer of the Issuer that
the purpose fo[ such wfthd r awalnc valid a of ehe
fu nde o aepos ehe 11 p—vide, t I fo[ Costs ofethe
c of ec [� The Issue[ Shall ptov idI, n t less often than m nthly,
copie of all such documentation t [he Holder of the Bonds and
s hallsprov ide copies of each m nthly a e
Construction Fund and such additional c of icatf on of theth
application of the C and a athe Bolder may r na bly
require me ludf ng, bu[sn [cl imi[ed e suppor all
disbutsements from said Construction fun... f[hdrawal5 from the
Construction Fund shall be only by c nsfer t [he general fund
operating a [ by at nsfer t the Commercial
Uepar tof SuncBank, N nal ASsociaeion for
s provided herein or by check signed by any t of
<heefollow ing au[horized offices of the Issuer. the Mayor the
C iey Clerk or the eepu ty Mayor.
SECTION 16. EEPRESENTATIONS BY THE ISSUER. The Issuer
reby represents, warrants and covenants with and to the
Bo ndho lde[s:
The I a political subdivision of the State of
eloridaAorg anizeds and a ing under and by v of t o£
[he S[a<e of Florida a s duly empowered underathe C stout con
and t of ehe B ioI FSotida [ the n
empla[ed by [his Resolation[andt to perform its
obl igat ionsshe�eunder.
1. The Issuer has found and deeecmined ththe financing
of the coat of the Pt.jec[ and the prepayment oEthe Iteedom Ue bt
s p[ov ided herein through the i of the Bonds c ss
appropriate u of the I-- sapower and will --tin a
sobstant ial public benef it.s
C. All n ary actions o the pat[ of the I
relating t the au thor f z a t ion, e and de liverysIfa this
solut and the Bonds have beencvalfdly taken and the Issuer
has further approved the sale and i of the Bonds and all
ary a the pact of then Issues relating t the
s ale oand delivery o the Bonds have been validly taken,
andochat the Bonds, when Issued, shall be a valid and enforceable
obligation of the I ording t the fmpo[t thereof, e cept
enfo[cement thereof emaycbe limieed by "I'llptcy. I solvency,
organion, er laws foe the relief of
debtors acizatmme oth
the tiinr effect.
h On ce reof, except tht ee[a ta n letr
E tom �Y er'Boe �2xy dick dated A,+gvs�91986 iw teith respect
to a possible claim against the i reg a[ding r s Grant
et/Skylark W tofacility, the[e i
.... dingas i nqu i[y I.
tigatfon at law o nequ n
bef oee " by any c of any i1 odic i al, adm inis[rat ive nI oubl is
agency, board oc body, pending, o the Issuee's knowledge,
threatened against o affecting whexein a
unfavo[able decision, ruling or Ei f-d ndingnwould r enjoin
the issuance, sale or delivery of the Bonds, o eadversely affect
the t etions c empla[ed by, o the validity o
enfo[ eability of ,o the Bonds o this A solution o adversely
the e f organ ization of the I the ertlet. office of %any ofe the members of the Iss uetso eo"Ecers of the
1-1 the validity of any of the p[oceedings taken by the
.1
[ the authorization, a on, sale, issuance
otsdel iveey of the Bonds or eh is Reso lot ionti
approval, c any
governmental public age ntyno uthoai ty,rothe. than the I
required by the I ct ion with l an dt
sale of the Bonds o radopttnga and performing res aoblig ations
u nde[ this Resoloti—cs
The I [bat r shall comply fully,
ing the t of orbs Bondsntwith alltapPlid
eg—tions and decisions promulgated by the Department of tl.
ury o the I nal A e — ice witb respect t
tonds s to maintain thev tax exempt status of the rnte[est on
he Bondsas
cept fl, the pledge thereon for the F[eedom Debt the
and Sewer A e free of any lien o umbrance and
[heeIssuer has they ight,apower and authority co pledge the Water
�. and Sewer Revenues as security for [he Bonds.
n defai the peefo[mance,
observance orefulfillme nc thI not any of the obLig ations, covenants or
ondieions c nea i any evidence of indebtedness, o any
lease, agreement ro of he[ i which i a patty o
by which i auyt of it, peopec ties i may be b und, which[
individually o the ggate, has o may have m eial
adverse of Eectro noche fagre
inancial condition, [ since of ope[ s r p[oies If the I ither the e ta delivery
pe[t
by the Issue[ of this A solution and the Bondst
n the
at ion of .......
as herein c emplatea,n r ompliance
ithuthe t and conaitions of this R solution audthe Bonds
Ibiates themprov ision of any applicable 1 onflicts with,
It suits r a breach of, any of the a onditions o
provisions of any r any .... lutions o ordinances
adopted by the Issuer, nor constitutes a default under any of the
I__ing.
SECTION ll. COVENANTS OF THE ISSUE'. So long a any of
the principal of and i any of the Bonds shall be
and ing and unpa ianto til there shall have been s apart
bytthe Issuer a sufficient to pay, when due, the e
principal of the sBonds r ing unpaid, together withni t
abb,I
and t the I ithn thew
holders of any ana[all tofr the Bonds asu followsn that:w
(A) ISSUANCE OF OTHER OBLIGATIONS PAYABLE OUT OF
RATES E. The I will n an
uany other
o blig at�ions, ' cep[EUEupon the conditions and in rhem
provided Herein, payable Erom the W and Sewer R
Buy pat thereof, n voluntarily c ovbeuc ded
any debt, lien, pledge, ass i9 nment,re any otheh
Charge having priority t c being o auparityew ith <he lien of
the B and the v ehereon.n Any other obligations
ube by the Issuernr raddition t e Bonds authorized by the
solution, o additional Bonds provided EOr i subsection 17(1),
shall c express s that such Bonds shall be
junior,o inferior and subordinate nc the Bonds i ued pursuant t
o this R solution a o Lien and s e and security for payment
from the Water and sewer Revenues.
(Ei INSURANCE. The I will c ty sucn inan ce
ordinarily c ied by governmental atsing a nd
operating s mil'[ facilitles 11
the 1-3-1-3—twi tha reputable
ncluding puhlic liability
a ndvi raglihlt loss or damage by fire (with
niEermcExtendednC rage Endorsement), explosion, hurricane,
_
ado, e rthquakeVscyclone o other haeaeds and rvs ks, and said
property 1 I.
damage i shall a all e s au
equal t appraisal value If
bu ilaings,ap[operties, turn itureav f fixtures and equipmenehof said
Pr0)ec L. Additionally, the I sha11 pcovIII the HOIder
v ideh'e o ri
sle r uwith _Ft cc t. ea1
pr ope[ty desdcibedo Exh,lit"A attached hereto to an amount
not less Chan $B, 000 n000.
(CI ehe e .E any
p[oceedi ng s, legal,Bequ ftabi eoNo otherw is or any llengin9 the
v al ld ity of the Bonds . this Resolution, o any p[ovislons
ned therein, the Z anaragrees [ nify
a.dthold the Bondholder ssharm l es...romsand against any raadmall
and expenses, [nclud Zng c sable a neys' fees i red
bysthe Bondholders [n conj unct ionswi<M1, o[ az [s ing ou< oE,nany
� such proceedings.
(OI BOOKS A RFCOHOS. The 111,
will m
books and r orris, which complete and c [shall be
made r .[dance wzeh general principles .Eea tng
appliC.— to political subdivisions of all t [-lacing
the Project and the I and s tsystemti
general; and any holder of ua .ndaor[Bonds shall have the tight
all r able t nspect ehe Project and ail parts
t here.f,eand tall r... Id., �accounts and data of the Issue[
[elating thereto.
The I shall, at Seast o a year, c ehe b_11,00ks,
olds and a of [he I solid acing and
soi idr_ basis tto be properly audited by a ompe<ent auditor
of r cognized s and ing and a ceptable t the
Ho lde[.0 ands s hall furnish t ehe Holder within . e hundred t my
(—) days o the end of the I s fiscal yea[, a copy .fws ch
audited financial s shad i t ion. lly, the I shall u
furnish t the Holdeato is p[[or to May 11 of e..hsyea[,
sal s - — £inane..I s s for the Issuer o
solidating and c s.lidated basismwhich sM1all be certified by
the Chief Financial Officer of ehe Issuer.
(H) MAINTENANCE O The I
will complete the Project p—WdI I., i BthisTA soluci.nsi
cal and efficient m ith all practicable df spatchan
and[ thereafter will m aid P[.jec and the w and s
system of which i atpa[t it good condition and c uslyeL
operate the s rn an efficient and economical manner and at a
reasonable cost.
(FI ITY O ATIONB. She
r hereby r CtheFr"gh<Tc BAd_T onal P ity
Obligations, such -add, ti—r obl ig a[ionseb ing payable ao
parley with the Bonds and being for — purpose of financing the
acqul aid [ calla[ ion of additional
I—
mprovements o the Project or for the purpose of
refunding the Bondsens nAdd it Tonal P ity Oblig ac ions shall be
ued aft-[ the i of any B.ndsr her ein auc ho[iz ed, except
upon eM1e conditfonssandc the manse[ hereinafter provided:
(1) Additional P icy Obligacions sha11 be
[
ithout t of ehe Holders of ...
r—1
h"d"d
wpe....t (loo" I aggregate principal a mof
ondsthen Outstanding; provided, however, thatn uch
consent of the Bondholders shall be required for —
of Additional P ity Obligations for refunding of
a llueonds then Ou[stand ing; and
(2) The Issue. shall approve a solution
supplementing the Resolution, in form a ceptable t the
I ssue['s c sel Ild bond c sel, making all of the
no
s herein c ned applicable t uch Additional
ityo_gat ionse ce pt vb_ di f ferentsp[ ovI.I.ec
applicable to
such Additional P rity obligations shall
have n t effecupon the i e ofthe Holders of the
Bonds herein authorised andthen outstanding; and
(I) The Issue[ shall n t be is default i
performing any of the c ons u and obligatia med
under this solution o[vne ae under and all payments
required herein to have been made inhe'. beenc
Fhe a s and
funds, as provided hereunder, shat lmadeco the
full extent [egei[ed; and
11) No Additional P ity Obligations snail be
ued if the i thereof shall r salt i the
of any Bondsethen Ou[sF ending becoment .able £o[
Fadecalti x purposes and ehe I shall provide
the Holders withaa opinion of a pally r cognized
bona c sel t the effect that theF Bonds will not become
ta.ableu as a [.salt of such rssuance); and
(5) No ueAdd icional P ity obllg at ions shall be
d if a the t of r a•the Z es debt
rage with r..Tatt the Wate[and Sewer
and the Bonds, tncl ud ing any paci<y obligations
previously or piopos ed to be issued, rs less than 1.25 to
1.
Such Additional ..
icy Obligations snail be deemed to nave
been 1 ued pursuant t this A solution the s the Bonds
r iginally authorized and i ued o FhisaR solution, and
all of the c and other pcov is ions of this e solution
(except a ovdetailc of such Bonds evidencing s ucheedditi.e.i
Obligationsti therewith), shall be for the equal
benefit, protections andts icy of the holders of any Bonds
r i9Ically authorized andei ued o this R solution and
holders of any Bonds e ing addieionaltob1 igat ions
subsequently c ted within the lim i[at ions of and i ompliance
it' this subsection. All of such Bonds, regardless of the [
tM1e i[ c shall rank equally wren respect <
t he irml <be W and B and t ande
ityef , paymenttf rom saidMr ilh— preference of
anyu.—ds or coupon, it any, over anyot here
The e "Additional Parity Obligations", a led in this
snail n med c nclea. bones, n
of wtefi...e o other obligations s sequently i uea, he Lien
hich on the Water and Sewer Revenues is subj etc co the prior
ana super io[ 1 ana s of Boas i eea
p.[ Yh isnA solution, aneshall n any
obligations wFa csoeve[ payable I— from ehesW [d S
which rank equally a o lien and s ands anityefo epayme
Etom such W and Sewe[ R iCMSBonds i d pue o
this so u cep. i theeanne mr
iis suand under [Feeconditions c
p[ovided n Chbsece ion.
he[elnaf [ec defined) ehe v [he Bonds (the
"Ad)usteRate") from the n soft Taxab i lit (as here inaEtet
defiined and [FrougM1 the date of payment fn full of the bonds
(ehe .cl.s ion P iod") shall be the P[ime Rate plus a
additional one pei ce nC (18) pet a.num. A Dete[minationns hall be
veff e
e Service of a o[y not of deficiency which a sects
ce chic the v thevBonds is includable fo[ s
Fedec al 1 x purposes n loss 1 Che gi of the
e holder of
the Bonds ao coupon the t eipta by the Bondholder o£ opinion of
a nationally [e<ogn Ez Idbond counsel approved by thenIss uer
Chat ve enChe Bonds s
v .....able for Federal i
putposesIt.— v of the Bondholder. these nta v sthe of
the o nof the D the Bonds shall bear
inte[est atthe Adj.stediRate n f[omn the Date of Tauability (as
:SiiiL�ZSSF+
sed i mediateiy (and r ely < the D of T xabilicy,
svhereinaf ter defined) t ethear of i effect
medlately preceding the D of LT it icy' sandnapp[op[ f ace
r epaymen<s of encess inte[es[ (lE any)y) sM1all be paid to the
effective date a of which the i c payable o the Bonds i
Gable [ the gloss v of c chesBo.dho ldee a re sulc of
the to of any c s giving [
The I uag reese to pay anyv penalties o any
o [he t it. by the B...holde[ due ..
Che[£a ilure
of t thesaondholderac .dude i the bonds in geo
income for Federal income tax purposes for that portion of sche
ac teats vn vn[e[esY [e s ulc ing f[om such a Determination and any
penalties in the form of ine eve se or of he[wlse shall be paid on
l ig area to pay c Ill i<ional s the
ssue[ vs o erta in ums co
Bondho laec upon [he o of a
De[erminac ion occurs subs equenc co payment voEYthe enndssinnfull,
the I specifically agrees and c ith the Bondholder
o pay to [each such Bondholde[, a suc
nity, h additional
s provided Eat under this subsectionupon the [ sort fth
herein. Sn addition t [he Fo[e9 oing indemnities andpayments
tequired by the[is subsection, if any change in law o the
pre thereof ors hereafter, other than -,
v
change [ the M otpotate T e
Redor
Pc of ec enceuction R and, a salt thereof,' theat
ohdho ld— of former Bondholde. r r optn of a
qualified t ansel, cepta blefor the Issuer and the T s the c of whichoPihioh shall be paid by the Issuer, thit1111
changesw ill r salt in (1) a disallowance, el fm ina tion, reduction,
disqualification oe loss o eight t claim any deduction o
t,— For Federal o t local i x purposes of such
ondholder o of atyt'f£ilI tee group of which such Bondholder i
embet (heteinafter [efer[ed t "Loss"), and/or (2)
,he impos i t ion of any p[ef etence, m other special t
under the federal, state or local taxi laws (hereinafter referred
x"), and such L s directly o indirectly
[elated t uch Bondho lder�sso -ship of the Bonds o the
receipt of vncome therefrom, Chen the Issuer agrees [o indemnify
expect 1, the fds by anwhich after deduction of all
te.requitedon
to be pa id a asalt of such Bondho Ldet's
t ere ipt of such sums (including,without limitation, any tax
allowable a a deduction) will m uch Bondholder's
after-tax economic yield and oveiallane[s aftee-tax cash flows
after-eax e c yield and o -all n of eer-tax cash flows
shall be determmned o the basis of theta umpti Chat (i) the
ondholder would haven re a li ned the e medst x benefit of the
deduction of credit if such change ihs law o[ ih tecpretatioh
highest marginal [ imposed by the laws applicable c
Bondho lde[. The forego ing i hdemnif ica< ions shall represent-'
iI
ing obligation of the i which shall s e payment
ofntheuB—, [n 1u11 and discharger of the Issuer's of her
obligations under this R solution and t shall [ mart
n full force and effecteu til expiration of navy applicable e
of Simicetions (ornlimi[ation period) wvth respect t the
nelus of v the gross [—If any such Bondholder.
Any suchns s payable hereunder 1111l1 beepayable by t n
a date selected by the Issuer, but in no event mo ce than svxty o
(60) days after the Oete[mvnatron.
(B) MA ENANCE of DEBT .ERVSCE COVERAGE. The I
shall budge[ each fiscal year a of the [ sofethe
Water and B equal t en hu ndted [ .tyfive percent
(125%) of theedebtvserv[ce coming due that fiscal year. Until
payment 11 "1 I'll 11 the '.N" — — year such. ipmad
'Z II -It It.. 11 11, budgeted for _:tt.
— —, h.11 the
SdIde' I _It ' I i a I.Py If —
........ .. p .. budget ... ... . i"" Y' 11 — lItIt than the
—h day .1 E 1— 1-1 d.li—itg S,pt..b.t 30, 1986.
(i) RA E COVENANT. The I
-d f.tili— f P.—t, and
"I sy— hith dill I—y, provide —U— i� -th yd., —11MU,
t, ,y, — If 1,11 funds, 11, 1,11111d p-111t 1 11 " " all
... I. ' P__U _d .:1 h t� I I t . bete 1
:.ldIt,y I:t,, i I—h y1l, Ild Ill th- E,—
I_ — hundred
--y-fi— p.—:''
debe
-luit—'t'..1""'isuchyr l
"'*.....' I tand otherIg.. shall —
b.
Reduced Ias t. be t. -—I revenues for such
b--
2
VICE.
o bewill
i"�'Td%-td. T. free f , byi
�It dt
system, —d'll Ity P—T—ti.l I . RI .—bli—d for
11 the 1class; provided, h—,, that
any
I'angement
,.t fire
I_tly i— —y
g—I —Ily 1—Illy approved by 1ity
c..i:ItdUf ... I:11111:1' bI''R''
diligently 'tf ...e td_11ctthe
_ and .h—charges
fl, the ....d facilities of th, and I--
system heceincpledged; will take all steps, a and
proceedings for ti. enforcement 'f .... . — and — — . %t
rges aIshall delinquent the 1.1i Ee .. tt'd . ... T' by law; and will —ttaccurate
—
records with ces
rt
1,11 ,,,ittd by
law t
the t.0 t., t allow
9[anting of, any f—U.— — P—it taUy P—t'
I --—LI . agency
""u ..tality whatsoever, foe
the b �q of . It � I...J11—. I I to oc within
bl—I—I It the 111—
Ill CONSTRUCTION REQUIREMENTS. Th. Ihall make
_ _Id' , , 0 the
N-11— I copy 11 11:
for the —j— -d shall provide the
Holder I copy of ehe
Is ttt—tith the general th. d—.—j"—
I
whic'C"lshalltbesul'approvalt' thIh
The 1—1 1:be b.d.d —h_I
the Holder .,y—Py ,U—I- —ly, the 111—
I t
—11 p-- — Ntd., I_—y f —1 p-p-ty
N_t'id.d E-111 --th1—y .hallo ,1 prepared by
___d_tid, I— ....y- and shall ReE_p_
e' t
—11d — with the It-d-d, set forth it Chapter21-HH-6 f th.
Florida AdministrativeC.R..
othing "I"i .. ........
any ..—old" — lien a a.,
..y — silent
facilities or ..y ..I P—p-ty se
by the falilitiof said Project.
SECTION18. EVENTS Cl
DEFAULT. The l be
.
of
bad— t_Sot'f_—, and
the
t..
shall �l I ib,d i. this R—t 'oEb-rI rt ro
one or of the
f
r.bt,z
-f.." i , the p—o—I payme f any
principal oa, :Sl
or i.—required
o I rad to pa I a _arr too E—d.;
'2) default - the -: Na'p"payment
any
other _to'ahereunderataNd the
o of such
Nor— it' - P'd of to' (IT) days; —
default
ibthe peefo[mance of the Issuer's
obligation to keep the Project Ia..as regu iced
-
--rdar; or
Ill th, Ibilure by the Issuee promptly to lift any
_' I ob ot att oh. b I
I . ... i'y to ""Y " it . operation
of the
Project
o to
—
o try - t - t. blll.tib— brd., this Ra.--b or
—N.' - the or-ra ..... 1 by the fa —Ilary
b.— under any P—_ or '.t.ra federal1 bankruptcy
t b r
— a,. ilar federal or , Ia., or the —"t by it to
the bPV' I rt._ r of or tlk-9tatpossession by —,i—,
t .. to%_I�, —ot.di— orother s
or 'Ia " of all" any substantial
portion of
i ehe —' ir, .1 any .i1 the ir—fil of
ally t I
th tors, pay it, dlbl,-r, �t�hh —1— f It. I-- g—
debts
"'b"t or th, t a, i g of
any oti- by tb, Issue[ P 11 "y " t"
f.'ago
ii, or — .—Y . f a N— order — by
a ""t "'i" jurisd is [ion
i, to, ""i i '—S—t of
I-- ia — --r—Y _ —d— a, ":d:'tl" --o b.alt, — — —y —ii— federal —
a der tee b orde[byrf oburt
atatt or `7 rbtry of r hab i ng P_ I a 1,, o , r.
It—, appointing "g a or blh,,
:i ilar official of Issuer
or 'I al, or _y rot-
lbltllll " portion
of ita -- or the — .' _ I I —lira .1 it� alfai,a aid tal ritl— .... of
any such decree for period
or n I nty N, _.o days;
y ; ,
(5) llf"It I, tl:lol'll .... abbaorof y
art I or a".da.tol. tbo .'. h of, _— any
,that
___r111, ti— or warranty .. the t of the I—, in
this R solution, [he Bonds and c of such
def aude oc bteach for a pei iod ofn thirtyi(30( days a
If such default has been given t the Issuer byethe
wh Holder, ich n sha
[ shall specify the f—h
default or breachatd requite it o be c—Idand s ate
that such n of Default" h.r—d— t
provided, h s tha tNifiduring such chitty (3o� day
period the r has, i [he sole opinion of the T
taken scepslr -ably calculated t medy such default,
Che Holder mayae end said period Co p[ov ide a
oppoi Cunity fot the default to be remedied; o[
(6) The e cof any m [al s which i
false i any m r ialrespect i any c of it—, report s
other documen tf u rnished by the Issuer .1 behalf
pursuant to this Resolution or the Bonds; or
SECTION 19. RE IES. Whenever any Event of Oef ault
referred t n Secti-nE 11 he[ell shall have o red and be
ntinuing, the Holder may take any o If the following
medial steps, provided that w oof' Che Even< of
Default has been given t -by CIlf--der and that such
Eef ault and all other lE of Default have n
e hereeof ore been cured within anysappl icable cure pe [fodiprovided
In Section lo:
(i) Holder may, a option, decl ate the -npa id
principal balance of the Bond plus all a ued and unpaid
thereon eo be i med iately due and r payable, whereupon the
rshall become i mediately due and payable; a d (ii) e
older may, ither at law o icy, by s andamus
It It— proceedings [ anyrI oof compe[entt j u risdiction,
protect and enforce any.-d allr rights, i-eluding the eight e
the employment of a ing under the laws of the o
State of Florida, orrgcan[ed a — herein, and may
enforce and compel the p— rmanceoIf aall duties required herein
t by any applicable s u o be performed by the I t by
any officer thereof. -thing herein, however, shall bese sit
-I
o grant t e hold— I any 1 any real n
property of ehe Zssu ec oc proc eedIIf ad valorem taxation
received by Che Issuer.
Any hold"[ of Bonds, o any t ing for such
ondholders i tM1e m r he re inait_ r_dedI may either at law
e,I ity,nby s andainus o Ithe[ proceeding i
a-yic -E comp"[ t ju[isdiction, protect and enforce any and
all rights under thenL of the S of Florida, or granted and
ned i this R solution, and mlyaenforce and compel the
performance -of all duties required by this R solatio- of by any
applicable s o be per --d by the I r by any
officer c and t ands ag tees co pay all
andhr nable a -eys'o E ee saofs any Holder of Bonds, or
any tt ing for is �ch BondM1olders in any such legal or
"quit ableepcoceeding.
Any r appo En[ed pursuant to this section shall
fore hw ith, directly o[ by Fi
ans agents and a neys, collect and
all the W d Sewer Revenues, andtc.mply under the
jurisdiction of the sc appointing such rece ivex, wi[F all of
ehe pcov is ions of thisuResolution.
Whnever all that is due upon the Bnd and i
n thereone
, and upon any other obligat loos and t.ereon
having a charge, lien o umbcance upon thenW and Sewe[
Revenues, shall have bid and made good, andeall defaults
under the provisions off t—this R solution shall have been C red and
made good, the c shall no long ec collect and r any
funds, upon the e tr- a order of the c that..£feet.
Upon any subsequent default, any Folder of eondl� o any t
appointed foe Bondholders as hereipp t pcov ided, sha 11 FaveteFe
anyeight e the fu[chec appointment If a rece tver upon
sucF subsequenh de aude.
uch t shall, the pecfocmahce of ehe powers
herein..... conferred upon hIm, be under the ditectioh
tand
supervision suof the c making such...
c sha11 all
s be bject t the I—rs and decrees of such nd may
bemt ..d thereby and a cc essot 1-1—app.—du inaathe
discretion of such court.
SECTION 11. PREPAYMENT OF F EDOM D ehe
of the Hoods, the I uthotized t and es hall
ptepaycthe Freedom Debt suehsehat cheaBonds, when i ued, shall
have a first and p[ior lien o all W and S The
Dtayor and the City Cle[k of the I uthocizedve take all
aty steps e any documenesccequii ed co provide EOr
theept.payment of [he I eedom Debt including the s Eng of a
of such prepayment to Freedom Savings I DoannA
notxless than ten (I., days ptfor to the issuance Of thecBonds.
SECTION 21. A TNORI2ATION OF E%ECUTII. AND D
DOCUMENTS. The Mayor of the Issue[ and the City Cle[k of ehe
e hereby authorized and directed t n behalf If
theuI and under i official seal, [Fe Bondsta uthorized
hexeins ua Axbitrage Cerc if irate and such other documents and
of icaces of the Issue[ a may be [equ ix ed by A
Sente[fitt 6 Eidson, Bond_
ec[ron with the
rssuance, sale and delivery of the Bondsnn
SECTION 22. MODIFICATION O ial
modification o endment o azsoLUMEOn o Nof manytt sOlut ion
ocy t eof O supplementalRth... to, may be made without
e he nd ing of the holde[s of cn
print ipal na x.1 the Bands then o anding; provide1,xe
however, th- difica[ion o endmenc s hall per ange
the m ity of such Hoods o [eductioni a thereon, o the a Of the principal oblig aeion,
oct --
ing the unconditional promise of the Issuer to pay the
p[incipal of and i the fonds, a ehe s shall become
due, from <he Wate[tands5 ewer Revenues, o cedu<em sucF percentage
of M1Olders of such Bonds required above fo[ sucM mod if i<at ions o
enamencs wien,,b eM1e oonsanc oe ene nolae[s of all ehe aonae co
be affected [hereby.
GECTION 23. S Y OF INVALID P ny If aone
of [he c �Eagreemenis o[a
pcovi�ions0of [M1is
so lue ion sM10 uldvbeaM1eld c a[y t ny express provision of
law o acy [ d'e po l tcytof express law, though n
e xpcess Synprohib lied, o pco
against public policy, o shall fo[ any
at a
wh[ be held c valid, then such c
agaeements Orpcovisi one shall be null and v0 idvand eshall be
deemed sepac ate from the r tnI c , vis ions o
agreements, and it way i ethe validity of all [he oche[
pcovis ions of this AesOlutionoc of tM1e Bonds issued thereu
SECTION 24. REPEALING CLAUSE. All r solutions of the
r pacts thereof, onflict wt[h the p[ov isions of this
Resolution, a the a tent of such conEl is t, hereby
superseded an de repealed. x
l
N 21. T FECT. This Reso lotion snail
take e f fectI_dia tely opoep_._.