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Resolution 86-572Por e ample, a ing the Cost of Funds a of t e date of e , n), if themM m Cocpora[e T shdecreased rty-s n percent )3]8)ubut the Prefer ence cReduetion R to --its unchanged, the Base —I—- would be adjusted as Pec tentage .�38 (b) Bonds" I '1186 —de"shad m e 11,000,000 ted R ondsra uthorized Cc be i uednpursua nt [ this solutionvandeaBy additional parity bands hereafter issued in the manner herein provided. (c) "Cade" m 1 Revenue Code of 1951, as ended, any < ng Ming provision of any future laws Ifthe utited States of Am relating to federal i and cept a o therwiseep rovided herei e. o requ iredc bye[hexc hereof, includes i erpretations t ned o <nforth the applicable regulations of the 0 of t Treasury (including applicable final regulationsoandm temporarye regulations), the applicable rulings of the I nal R Service (including published R e Rulings anarp—atb letter rulings) and applicable court decisions. I' (d) "Commission" shall mean the City Comm rse[on of the City of Gong wood, Plor ida. (e) und" m Police Statill Construction F�ndcp ovi did Ffor inesectldh 14(e) he r eoE. IE) "Cost of Funds" shall rz e M1undred multiplied by a fraction, t If w neI_ t the t tal i st expense of S hrfor[[ mmedia toly precedingre endar qua rterum tiplledlby four (9),r the a rage t tal a s .1 for the immediately preceding—lendacet quarcerra reflected in t e quarterly financial statementsIfuS.C—t Hanks, Inc. .���---woras, Cost of il total Sun Trust interest expense Eor precedinq qua rte�r x 4 Funds = l00 x 2ver19e S-Trust total rise cs for preceding quarter ample, based o ce quarterly financial sIt for Sun__ Banks, Inc. for[he period ending June 30, 1986t the cost of Funds would be c culated as follows: cUnc of IrrIzle, 4os a4 ds = 100 x L1B, 25�� Cost of Funds _ 4.t6 (9) "County" shall mean Seminole County, Florida Prime Rate plus two percent (2%) per annum omponent of 11, Tef ra Adjustment) while the Bonds a _I i n9. uch e xed R shall bI adjusted cally a of i v--till I'll oftany change i Maxlmumr Corporate T any c ange i referencee Redaction R e bas edxuponet e follcwin9 formula u in9 the n m Corporate T x Rate and t w P r eferencesReductionebate xed R equal [11.44%jnmu ltiplied by [1 minus Maximum Corpoeatea Tax Rate[ plus [TeEra Adjustment]. icy -seven percent (3)&) but the Preference Reduction Rate r emaans unchanged, the Crxed Rate would be adjusted as follows: date of i of t onds t ou9h and i lading the s ann r ve rsaryo_I of the is suancerof the Bonds while such Bondsn bonds. (1) Issuer sha11 mean the City of Longwood, [lorida. (m) orpora to T marginal Federalrtax rate (currenclya46%)ma pplicablea Go nal Revenue Code of 1954, m en a ded, a uch marginal Federal tax rate sha11 beamodified from time to tame. (nj "P1a ns and Specif ica[icns" when used with reference the improvements comprising the Project, m the P1ans and Specifications prepared for t and filedsw Holder as the same may be revised from time to time duringt thehe (o) reference Reduction R shall m n the per tage reduction (cu r rent-, 20%) to be applied t the a allowable as a deduction under Chapter 1 of the Code with respect to any n 111(e) of the Code) as presently s t forth i 291(a)(3) of t Code, a uch percentage reduction shalltben modified from came to ti_ e by Sun Banks, r s principal office in Orlando, Florida, or by the C o[he prime r e (which only abenchsm s purely discretionary and �otsn illy t e best or lowest'. ir arged borrowingccustomers o_ any subsidiary bankof t Sunt Ba nks, Inc.). (q) "Project" shall m and include the improvements made o o bmade t ea la proper ty described o Exhibit A Itthld ree to and madeea part hereof, including, but n limited to, the t c a of a approximly 9,559 square foot police headquar to r sf a cilityas descateribed i the Plans and Specifications prepared for the sG I o and other c s associated with the Construction o_the polia ce I_ipn. (r) Regis erar" shall mean the Issuer. (s) Tefra Adjustment" shall .,It an adjustment equal to m Corporate T Rate] multiplied by the Preference Redu c{ion R ample, a inq the Cos[ of Funds .. of the date ofai e (4.78), ifs the M m Corporate Tax R to rs decreased t thirty-seven percent (37%)ibut t reference a Reduction remains unchanged, the Faxed Rate would be adjusted as follows: In other words, Tefra 1[-n f CT-- REtte Adjustment L as �x �ax x Creferan ce Reduction Rat] eor example, based upon conditions 11 of the dace of issuance the Te Era Adjustment woula be calculaced as follows: Tefra Adjustment = 4.]8 x .46 Tefra Adjus —t = .44 For e ample, a ing [he Cos[ of Funds a of the date of e (4e.]8), iE t orporace a s deceased c n percent (37%)xbutmthe Preference Reduction R morns u nchangedVthe Tefra Adjustment would be adjusted as follows;re Tefra (t) "Utilities Service T hall m imposed by the r pursuant t Code of Ordira nces ofa t hehCityx of Longwood, section 2 e pu...... of electricity, m red o b.ttlbd gas (naeurzl16iiqu ifiea o nu Eact-2), w rvice, telephone service and telegraph service within the Cityse. (u) iable A—' shall m [he B cage of t P rovidedarh atthat the v is ble R shallnn r be lessrthan 1-1 per a regreater than 9.0$ per a providede further, [ha tusaid m and in snfor Variable R shall be adjusted i [he e not ua changexi utheaM orporate Tax H the Preference Reduction R and m hall be adjusted a callyua oEsthet e ff e c t ivemdate ofxa nym change i the M .1porate T any change in the Preference Reduction Rate basedmupon [he followRnga form. las: NEW MINIMUM RATE = 8.9 multiplied by (1 - m Corporate Tax Rate) + (Tefra Adjustment) NEW MA%SHUN RATE 15.85 mu lttplied by (1 - MAxil m Corporate Tax Rate) I (Tefra Adjustme n t)u ample, a ing t e Cost of Eunds a of the date of i (4c]8), iE thesM m Corporate T s decreased t tbi rty<seven per ent (3]3) bu[x[ refe [ence Reduct ionr Rate r nchanged, the new minimum and maxvmum races would be adjusted asmf ollcws: NEW MINIMUM RAT_ _ (8.9 X (.63) - (4.]8 X .37 X. 28) 5.96 NEW —MUM RATE _ (15.85) X (.63) 1 (4,]8 X .37 X .20) 1 fiscal year" shall m the period beginning October 1 and endi nq sepxeniber 30. (w) ords r importing singular number s c lode t plural n and v a ndswordsimpo rung persons sha 11 Include firms and corpoations. secmloN J. P 12 is hereby found, determined and declared as fall—, thats protection of the health, welfare and safety of its residents. (d) The c e i headquarters facility of the Issuer's police department Isprese ntly inadequa xe to meet the needs of (c7 It i dry and ..... till to the immediate protection of the health, safety and welfare of C tlzens of the Issuer that there be constructed and equippedhan 'd) The acquisition, c t public b and equipping of a police headquarters facility a sofa anefit t the citizens of the Issuer and constitute a valid municipal purpose. (e) The e ted c of the c acquisitio If t roject i sapproximately $1,000,0o0ti na99rega[e. Su chhe shall be deemed t nclude the c ofea cquisition and It any fix equipment or properties deemed aiyio teherefor; fiscal fees; architectural and l egalsexpe nses�nex penses for e of c and o£ r expenses far plans, spec if i cat i on wand s veyss administratives expen and s expen mayu be n dry o incidental to the hfinanc ing author l zed by thiscRes olu tion. (f) The Utilities S w pledged and w be sufficient C oper andrm then Project and Co pay the principal of and i Dods to be i ued pursuant t the provisions of this ees oluhi_ _ the same mature ana become (q) The principal of and i the Bonds to be ued pursuant c this R solutionuandeall o r payments provided for i solution will be paidtsolely from the tilixies 5 s herein provided, and i will n r be required Coe levyet of any n any red ltor personal property i o pay t pal of and iI. e Bonds totbe i— pars uanthx si Resolution orttoem any other payments provided f thietR solution; and that t Bonds Mud pursuant t this shall n to a upon any of the propertieseof l x u ceptnc Utilities Service Tax, or any part thereof or upon any -1- property whatsoever of the Issuer and b t bid i yr6ance w o bid published by thesS y 31, 1966Ch The Ei na lot e purchase of the Bondsr a snprovided and s t forth i thissR solution were omplished through neg oeiations with Sun e ..... Nationa thereby making Cia privately placed negotil te ad salecia b the e required1, law, the purchase of the Bonds of hrby a ardedto Sun e anal A nehe basis eial bid and Ches ubse -tly negotiatedt Puzsuantnt hapter 218, FS o r ida Statutes, reby the following findings with regard t t t h elnegotiated aspect ofh[ sale of t Dods: (a) negotiated sale of the Bonds a priceeequal t the principal aneof plus lasued oi fill e dacetef thee btecuhenDofthssu(b)lnWe% easelist of n general, due e the n of the i prevailing and the m tab ilitye of [ onds; and speci Eicall ye Eor C 11l11 ng additi—lh1 (i) I the bpi -on of the [suer, if competitive biddingswere insisted upon, purchaser for the Bonds on a competitive bid basis which off ;zed opinoof t e Issuer, e Bonds i belowi s forts mi lareobl iga t ions[ and could n t[ber lowerednve e nsiErbeen It tltive bidding had bor were to be u cilized, ued h under by t hall hold the s thiseA solu[ionhsha llhbes deemed to be a hallmc cute between t and t ondholders; and theci I--- and agreements h e rein se thfo th to be performed by the e legal holders of any and all of s onds, all of which Shall be of equal r ithout preferenceB priority o distinction of any ofkt ere onds o any other thof except as expressly provided therein and hereon. NDS. Su bJect and pursuant the provisions of this R solution, Bonds of C e Issuer to be icy of Longwood, eF ri da L ted Revenue Bonds, Series 1986' a e hereby authorized too be i ued i aggrega to principal amount of one Mrllron Dollars ($1,000,Ooo.00). (unless s r prepaid a rth herein); shall bear i rest t forth i sthetBo�d, which i est s 1 bece payable peri odica llY c inq M rch 33, 1 andho es sec forth in the Bond;oshall be issued initially as a singleat fully -registered B and shall be payable a o principal i eleven (11) a uaSoi ing Be ptember 2d 1 which i shalllbeeinsthenamoun is and on the dates sIt forth in thelBonde uch Bonds shall be payable w espec[ to both principal and i at t office of the F.o Sderrand shall be payable in lavfultmoney of the United St_ of America. in the name of the Issuer by the Mayor of the Issuer and of the Issuer a a facsimile C eof shall be affixed t reproduced thereon, The facsimile signatures of CM1e Mayoreo cehe City Clerk may be imprinted o reproduced o the Bonds, provided that at least one signature required to be placed thereon shall be signed o s s ealed any of t olds sha11 e c o be s of f iceraof the u I rbe Eore the Bonds signed andsealed sha llch I— actually s.Idand delivered, such Bonds may nevertheless be person who signed o ealed s onds had n sed to hold such office. Any Bonds may be signed and sealed on behalf of the Issuer by t such person who a the a ua1 C of the e of s onds s hail hold the proper officein the Issuer, although at theuda to of e facsimile signature of any person w hall have been such Mayor r City Clerk a any t after the de, t onds, iths —ding that h maynh sed to be s officer at the time such Bonds shall be actual iycsola and deli--d. N 8. AEGZBTRATION. The Bands S ECTIO NEGOTIABILITY ANO ued hereunder shall be and shall have all of the qualities and ci dents of negotiable instruments under the law m rdhant and the Laws of State of Florida, and each successive holder, in agreed that such Bonds sha11 be and have all the qualities and -—s �ii[niGR The Bonds shall be registered a o principal and i the off Ice of t Aeg is trar, o suffice of any o regis tract ha11 be duly appointed by r solution of t ard,h such r e9 is tration to be n ted o the back of said sondsosha Ll be v lid unless made a aid officenby the registered o r by his duly autborixea agent or representative and sr mils rly n hed on the Bonds. In c any Bond shall become m Cilated or be destroyed, stolen the Issuer may, i s discretion, i and deliver a and of li k, tenor 11 th, 1111 s tilatede, destroyed, or s d Sonde nuponlsurrenderxandngcancella[ion of such mu tilatedv Bond or n lieu ofand substitution Eor c and destroyed, stolen or lost, andupon C older's fu rn i.s Fieg the S ooE of hip [ eofeand s isEactory indemnieysandr complying with uchre nab le regulations and conditions a may pre ribeaa d paying s expenses as the S may i All Bonds s endered shall be c celled by the Secret aryc of the Board. oIfuany such Bonds shall have matured or be about to the s upon rnq indemnified a aEoresa id, and iE s Bond be lost, stolen or destroyed, without surrender thereofuch Any s h duplicate Bonds i aed pursuant tos Section s hail constr tut, original, additional eontract-I ob ligaeions on destroyed Bond be a any till found by anyone, and such duplicate Bonds shall be entitled torequal and proportionate benefits and bear i on as may b redeemed iehoutt premiumtochpenaltybPetoa tt their respective s -ted dates of m ity, a the option of C and upon the givi ng�of thirty )30)adays notice to the aondholders� may redeem all o a part of t e Bonds prior c icy upon the , i 'it, of thirty )SO) days n ondholders and i 11,11 e Issuer shall pay C e Holder a prepayment penaltyui equal to III the t tal a of i est t ould n havembeen paid o the a ool Bondsnbeing prepaid from the date of prepayment t end of tt xed R iod had the Fixed Rate been a rate per ant— eq.tlFto the aF r x edrRate in effect on orporate A ) less (ii) the .... the pr principal epaid uld wo yield if c e principal a ants sopre paid w tee o the date of prepayment i B.S. T ury s ing maturity date cornciding ewi th the end of the Frxed Aate Period or maturity date c ciding with the end of the F xed R e Period, n the date closest t end of the Fixed R Ibe, and radie, in the s ondaryhm ket i nableavolume a a price ithin 5% of pet.0 Any partial prepaym11ts o Che Bondt shall be 11 n sloo, 000 o tegral multiples of ss,0000t eafters a nda s hall be applied to the Bonds in rnverse order ofhthe stated maturrtres. 11 I'll F— OF —e. The Bonds shall b substantially Lhe following form, wit� /. and varr ations as may be necessary and desira blesandsauthorizedns r permitted by this Resolution or by any subsequent resolution adopted prior to the Issuance thereof: No. 5 UNITED S TEL£ A-,.,ASTATESAOF t' CITY OF LONGWOOD,3f FLORIDA LIMITED REVENUE BOND IINOW A .MEN e RESENTS, that the City of Longwood, rida, (hereinaf terY ref erEed t r"), for v ved, het promises to pay c registered holder, L regist lied n.—,Bs, nsol, t fromithe special funds hereinafter menel ned and noc o e pri cipal s of L 1S eh'ra ndeto tpay, solely from said speciao said pri cipal s the I— per annum as hereinafter se[ for th,opayable as se[ forthaM1erein;at ued i unpaid principal balance of the Eonds hall becpayableno the following dates: 23, 1988; September 23, 1988; September 2 989; September 23�a I. September 23, 1991; September 23, 1992; September 23, 1993; M 13, 1994; September 23, 1994; M rch 23, 1995; September 23, 1995aM rch 23, 1996; Septembet 23, 1996; M tcM1 23, 199]; September 23, 199]; M 23, 199P; and September 23, 199P. The principal o ondsas hall be repayable in eleven (11) consecutl ve aggtegHt, annuals installment payments as follows: _payment September 23, 19PP 54J,619.00 September 23, 1989 595,238.00 September 23, 1990 $95,238.00 September 23, 1991 595,238.00 September 23, 1111 595, 238.00 Sep tembee 23, I_ $95,238.00 September 23, 1111 $95,238.00 September 23, I_ 895,238.00 September 23, 1996 595, 238.00 September 23, 199] $95, 238.00 September II, 199P 595, 239.00 Oth principal of and i ts Bond Ill payable in lawful [hney of t e United St a t e sr of A_ lca at the principal office of e H.I_. SE no repa pyments of principal of the Bonds a made a n permitted, I_ o final i e duet - tem Sepber 23,e1998, upon the presen ta[iontand surrender hereof. From t e date of i .. the Bonds u ell the s ven th aIF date thereof ehea1 est r tunpaid e principal balance of t .— shall b e£ixed R defined in the Resolution, subject _o c erta i nad j us eme ass as provided in the Resolution thereafter the interest race on the If the principal of, o m1um, if any, or lnte_est on unpaid principal of and premium, iE any, and to the e permitted by 1 the a of such unpaid i shall. bear interest at I—', Ra[em(astdeEined in the Resolution) plus two full, su e being referred to herein a the "Default Rate," and ailinterest to be paid in respect of said Default Rate being of T xability" t (as hnI— defined) and gh e d of payment in full of rt he Bonds (the nclus ionCou P iod ) "Chs 1ate be the "Prime Rate" as defined in the Resolution) olus an additional have occurred upon the dace of issuance by the Internal Revenue effect that c n the Bonds i Rcloda ble Eor Federal x purpoes sei sthe groc ss i sof the Bondholder o on up eipc by c ondholder of a opinion of a Rally cognized bond c sei approved by the Issuer (which approval shall not be unreasonably withheld) to the effect that rnterest q ross i of t o Bondholder. In the e of the a of a the Bonds shall bear i It theuus Ndjted Rate from the Date of Taxability (as hereinaftert defined) to and any iiiltt.1.1.— ch D sebseque tly e sed o side, e r sha 11 be r sed immedia[elye(a Id r velY t tbb D of tT xability, a Rafter defined) t tthecrate of o effect immediatelyeprecedinq the Date of T xabiility, a ndeappropriate repa ymen[s of e ,(if any)as hall be paid to the Issuer. The term 'Dateso EnTaxa bili ty" means the Honds 1 ncSudable i the gross i of the Hondhold er a r esule of the occurrence of any Ili —stances giving 115e to the ex nq i" by the Bondholder due t he failure If theBondh.lderto include i o the Bonds 'I failure i for Federal x purpos e se forthat portion of the Incl.sion iod end ingnwith the date of the D —1. nIy a sultinq from such a Determinationand any penalties i th' of i otherwise s 1 be paid o the i e payment date next succeeding the Determination. Whenever it this be deemed t hide and man interest at the adjusted Rate during any �ncl-- Pi—d s provided 1 obligated t pay ter tarn ad di t iona It sums tolt he Bondholderoupons the occurrence of a Determination, If such D subsequent t payment of the Bonds in fu11, therIssuer specifically agrees and covenants with the Bondholder, to pay to each such Bondholder, as foregoing indemnities and payments required by t solution, f any change in Savo Ill i erpretation tF ereof o s hereaftei, change i the M ocporate T Rate or P refe.:lb mReductionr Ra to las those terms are defined in former bondholder r opinion of a qualified t sel, ecerve5 an ax coon cnionb$h t the I and the T us tee, C of w opinion � be paiduby ehe I that s ange wrllhr an (1)nasdisallowance, elrmr nation, reduction„ disqualifica[eonit x purposes of s hondholder o of any grou affiliated pnofmwFuch Bondholderr ember (Fe red. andl— (2)athe imposition If anynpreference� minimum or other special tax under the "Tax"), and such Loss o s directly o indirectly related to such Bondholder's ownershipxof ehe Bonds or the receipt of income x by i ing [ t payments to be made r cpre.i ouslyTmade t old" espect t ehe Bonds by a which after deduction of allrc required to be paid as —.It of s h Holder's r eipt f uch .... (in bithgncluding, e limitation, any t ingfrom a reduction i wbichwould the, be allowable a a deduction) will sum Bondholder after-tax ewnom rc yield and over-all-nem "o rn tai the same levels whim would have been teali—d if such change in uch Holder's after-tax e c yield and o ra 11 n after-tax cash flows shall be de to rm in edion the basis of the assumptions benefit of t e deduction o redit if such change in law o e rpre n thereof did n and (ii) the Bondholder has marginaltf ederal, state and localo<orpotat e income tax rates e payment of the Bonds in full and discharge of [ issuer s other obligations under the Band and the Resolution and applicable s ­If" s (or limitation period) w espect t thetinclusion nofai n the gross i oftany uch Bondholder. Any such s sepayable her eunde[ shallabe payable by the I a date selected b but in no evenI more than sixty (10) days after the Determina Leon. a nding anything else s olutionW i i nshall 6 tepa id o agreed to be paid to the holder ofvtbe Bond foreuse,uforbea ranee r aetencion of f ney to be aacanced the 11, naer a eea the highest lawful r e peemi[[ed under 1 applicable t o by a art of compel t jurisdiction. If,from any c whatever, t e fulfillment of any provision of thisc[io nd o ache Resoluti on,ha the t e performance of s h provision shall be due shall i volve payment of i which e eeds the highest lawful r o determinedt thenti o factdthe obligation to be fulfilled sha 11 be reduced I. highest lawful r If, from any c what""' the holder of the Bondshall e cthe a of which would eed s highest la wfuler e por othe — which would be ce shall be appliedtt [he reduction of the unpaid pri ncipalrbala nce due under this Bond and not to the payment of aggregate principal amount of $1,000,000 of like date, tenor and to acquire and c ns tract and equip a approximately 9,— square -foot poli�e headquarters fa ci IIII on property o ned by the Issuer and for purposes i cidental thereto, under t hauthority If and in fu11 compliancenwith the Constitution and5 eof the S of Florida, and a solution duly adopted byat eMy If id I t22nd day of September, 1986 Ithe saimsolution"), saand is subilttto all the terms and conditions of a Resolution. This Bond, the i of which i a part, and any additional ':I e bonds�r ing o a parity therewith, w may be i uea anavo anaing under the conditions and t f orthsi the Resolution, a and will c e to beepayable solely a I. both princi paleand i to f I— and s red by a pledge of and lien upon the UtilitieseS-11,e Tax, as such term Resolution. Thrs Bond does not constrtute an indebtedness of the It— provisfon or limitation, and i expressly agreed by t older o this Bond that such holdertshall n r have the righIe r equI _.Pei t of the ad valorem t ing power of the Sssuer for the paymentcIfet e pri cipal of andi this Bond o the making of any other payments provided forr in — the Resolutions s further agreed between. the 3 and t older of I— Bond t e Issuer c t Sevy t uoE any n n any r personal pr operty i o paytt principal —If or anterest on this soedhands that this so ndea nd the tan a It" up"y o r properties of the I any parte t eof, but shall constrtu[e a lien only on the Utilities serviceT— �r� y Cle rc Tne HondsCshe111n c beNo indebted ISSUER. but s 1 be payablen h. ely ef... t lit ies Service s hereinhprovided. hold.. o .I ...Uo. any Band i ued under s right t ompel t of the t.iiHg poweraof the�I— ertto pay the Bonds o theei . bee itled to payment o£ such principal andri Ill. any other funds of the Issuer except the ❑[ilities Se r vicet Tax as prodded herein. SECTION 1 EDGE OF UTI LITZEs sHRVICE TA%. The payment of [he principal Df and i all of the 1ji1_� s all be s red forthwith, equally ander [ably, by a first and prior Iien o •the Utilities s e Utilities He.. ice T o pay thehpr i ncipal of and the eondsoand [ ma k eea llto t her payments provided for solution, i —by i .ably pledged t the payment of ihes pRencipal of andhinterest on the Bands herein authorized as the same become due. SECTION 1 PLICATION OF HOND PROCEE.. All moneys ved from the sale of any o all of the Bonds originally u thorized and i ued pursuant to this Resolution shall be dI bu..hd as follows: (a) T hall first be paid, o there shall be set aside and held forhsuchspayment, all expensesri red by o n behalf of the I ,.lion with the i of the Bonds, ncl udingsobItrn [olimited [ any feessandcex penses of the set, bond c sel, ial purchasers' c sel, the eof sprinting o e prepay inq the Bonds, if any, the ost of preparing o ording and filing Che i emplated herebyrandeany o expenses i .edam ich the Bonds o sale andhi Pa ymentnt eof shall be made upon bmrssron to the I s su e r�offs tatements or invoices therefor e,su (b) The balance of such proceeds 0E sale of the Bonds shall be deposited by the I n Bank, nal A o be known as thea CPol icea Station Con s tructlono Fundi' ich shall be kept sepa[ate and apart from all other funds of the I All m neys a any t aid Construceion Fund sha11 beat usly s red in the s s deposits 0E s andzm cipa1 funds a required to r bensecured by the pzesen ttLaws of u[he State of Floeida, The holders of said Bonds shall M1a ve a lien upon all neys i aid c and u til applied as provided i solution; ca ndrs neys shall be used only for the n and acquisition of the P[0ject as provided in this Resolution nand for n other purpose. ifor an fy r there shall be a expended balance i the C undo of ter omple[i" of t qu acisitioan n d c nof the project, t such unexpended balance ofsa idcsond proceeds shall be used to redeem the Bonds on [he next practical payment date. All such proceeds of the sale of t e Bonds shall be and e t[u st funds foc such purpos and there is he_by [edua lien upon all s neys u ti1 s applied as provided herein, in Eavo[ of the holder of the Bonds. will be made of the proceeds o£ [ onds w if uch u bly expected o e date ofei M1ofD the onds, eulaec tithe s o be 'azbitzage bondsssW themi ngwoh theaCode. TM1eml ss uer a all t while — Honda and est thereon a ,odinq, will m_ply with the requirements of Sec ti 0ne103(c) of the Code and anY valid and applicable [ales and regulations promulgated thereunder. With zespect to Section 303(c7 of t e Code, the ma Yor of the I r has e tad the Arbitrage Certificate" o mains rep[esenta [ions of et arbitrage which representations by thisr efere nceta orpor aced ondsand made a part h Hof, tcf the bond c sal shall renderPa oopi�i- ss toa arbitzage matters based in part upon the representations c ned i Issuer's Arbitrage Certificate. The Issuer agreestt hat i ing wi 11 do s omp liance with the zepresentations nedti e Issuer's Arbitrage Certificate and i or dance i tha the provisions hereof. neys c n be i tad without [eqa to t the yield limitations of Section 103(c) of the Code only t the e t permitted by t applicable regulations of t United S ta[esxTreasu ry .epa r tmenthpr timid ga tad undez s h sectione 103(1) 0f t e Code (including any regulations p—posedcto be pr.mulgatedh thereunder) a e presently a may ErOm r evrsea,ci me hereafter besamendedm modified, suppleme�[ed 0r r The Issuer sha11 have the sole responsibility for m ing s hereunder and for compliance with all applicable law ande r egulati0ns. Subject t the preceding paragraphs, the I the _ett permitted by law, may, pending application[ eof a provided unh neys on deposit i the c n d; provided, however,mthat any such i eel, beio Omplished through the c ercill invest men tdepartment of Sun Hank, National As soda tioc. tshall be eemed C et times a part of the Cons [ructnons Funda nd any n dt gain r zed from 11ch ms between i rI payment dates shall be reditedt hf und, and any n tloss r salting from such investments shall be charged to such fund, isbursemen is from the Construction Fund shall be fully documented by the Issuer inuch ferm and c isfactory t l the Holde rwhich dccumentationes et forth the a ant of the withdrawalt e person or personst whom such i thdrawal is payable, [ ,of [ thdrawc and a t ific n by t o Chief F iaie0fficer of the I r that the purpose for such wit hdrawalnc valid u uof the funds on deposit i the Cone trueti" "I eoi costs oe the r oject. The Issuer cha11 provide, not less often than m nthly, copies of a h documentation t the Holder of the bonds and s ha11 provide copies of each monthly account statement on the disbursements I— said Construction Fund. Withdrawals from the Construction Fund shall be only by t nsfer t the general fund operating account of the Issuer; by transfer to the Commercial ent as provided h r by check signed by any c of investm er ein o wo the Following authorized offices of the Issuer. the mayor, the Horeby repx.... le, warxanes and covenants with and to the ndholde r a, A. The Issuer is a political subdivs ion of the State of the State of Florida and is duly empowered under the Constitution and the L of t of Florida t enter into lhe t ransactibte contemplated by this Resolution and to pexform its of t oof the roject as provided h through the of the Bonds c appropriate use of the Issuer s power and wf 11 oresu lttin a substantial public benefit. All necessary actions on the part of the Issuer has further approved the sale and issuance of the Bonds and all sale and del iwery of the Bonds have been validly ndu[M1at the taken, aBonds, w ued, shall be a valid and enforceable obligation of the I ordinq c import thereof, e cept as enforcement thereof ma Ycbe Srmrted byeba n kruptcy, insolvency, 01 the dace hereof, except for that certain surf filed Circuit Court o the Eighteenth Judicial Circuit of Seminole n ty, F lori dar bea r i ng Case N s6-3o 26-CA-1)-£, which sit shall be finally disposed of t the s rs Faction of bond 111nsel pri of the Bonds action, s proceedingssinquiiy o tigationeats law o equity, before r by any c of any judeci a 1, admin i str ativer or public agency, board or bodyrt pending, o the I owledge, t ned against o Iffecti nq t wherein a unfavorablehdecision, r ulinq or[finding woulder enjoinnche i sale or delivery of the Bonds, o eadwersely affect t emplated by, or the validity o enf orceabi lityno%C11, s¢Dods 'bisolar adversely affect the e organization ofr the Issuer or the tr 11, to Ifficen of any of the governmental public agency o ith.lity, other than the I required by the I ection w andr sale of the Bonds ors it, r adopting and performing itsu obligations The I omply Eu 11y, during the term of then BondsitwithaalStappli cable rules, rulings, [eg ul at ions and decisions promulgated by t Department of t ury o the I nal A e service with respec[ t thehe sDods s co manta rn thevtax exempt status of the interest on he eonaaae A. he Utilities Service T s free of any lien o umbranc —a the I r has t right, power and au thocity to pledge the utilities se rvr ce Tax as security for the Bonds. H. The Issuer is not in default in the performance, omit ned i any"' of inaebceaness, o any lease, agreement o a party o by which it or any[of tits properties is or may be bound, which i ndividoally o the aggregate, h may h eial adve effectro n[he financial condition, sultsmoopera[ions r properties ofnthe I ither wi the e cation and delivery r by the I of this 0. and the Ronds n the ithmmationof c sshere in c emplaced,rn ompliance the t anda ondi ci ons of this R solution andr[he Honds ill,emprovis ion of any appcable lilaw, n onf lists th, s ul tshi a breach If, any of the t ondi. Liens o provisions of any r any r solutions It ordinances adopted by the Issuer, nor constrCutes a default under any of the the principal of and isany of t onds s en1 be a ndinq and unpaidi o til there shal lHhave bes apart the bys I s s sufficient to pay, h w n due, t n principalof r theHonds r ing unpaid, together withi t ued and to a thereon, the Issuer c i[hnthees accr ccrue ovenants w holders of any and all of the Bonds as follows that: obligations, except upon the conditions and in the manner part t eof, n voluntarily c o be c ted any debt, 1ien, pledge, signment,rI umbranceso any o arge having priority to oas being o a parity with the lienhof the tonds, and the i thereon. Any other obligations i ued by he Issuer in additions to the Bonds out—i-d by the Resolutron, express s ent that s onds shall be junior, inferioraa nd subordinate t [he Hondshi ued pursuant t this Resolution as to lien and source and security for payment from ordinarily c ied by govarnmental a ing and operating s milar facilities a roj ectswi[hsa reputable —il- ncluding public liability a nsu ra nce, andtinsuranceagainst loss or damage by fire (with nado, e tlquake, cyclone o ards and risks, and said property loss or damage i ssnallaa all t s be i n equal t s[nefa it appraisal value of the a bu ildings,aproperti es, t— cure, r and equipment of said roject. Additionally, the I shalleprovide the Holder v idence of o itle i ith respt t the roreal pperty describedso xhibituA attachedereechto an an amount not less than H1,doo,_ b validity of t onds o ehis P solution, o any provisions contained therein, [he Issuer covenants andrag rees to indemnify I'd hold t ondholders Harmless f and against any ana all osts and expel ludinq r sable a Heys' Eees i red by the Bondholders 1n conjunctionsvith, or arlsing out of, I, books and r ords, i which complete and c shall be made i ord— wl[h general principles ifea inq applicablecGo political subdivisions of all t relating the Project; ana any holder o and o onasas le have the right at all r sable t aspect the Pro jectaat, all pares thereof, edd all r ewi dstoaccou n t s and data of the Issuer soli11111 basis to be properly audited by a ompe to" auditor Id IIF r cognized s anding and a ceptable C the Holde rivandnshall furnish t the Holder within o undyed t enty (120) days of t end of the I s fiscal yea ri a copy ofwsuid audited financial statements. sAdditionally, the Ihall furnish e the Holder o r prior t May 15 of 'achsyears internal .bo_al financial s s for the I solidating and c solidatedt ba sls w ha llobea certified by the Chief Fr nano al Officer of the Issuer. (E) ANCE OF PROJECT. The I will complete rojec[ provided for i this Resolution i cal and efficient m all practicable d is patch, a andc� eaft" will m aid lPr oject in good condition and c usly operatelthel same vn an efficient mannet and at a reasonable cost. (F) TI OBLIGATIONS. he r hereby r ri IF [ Additional P ity T Obligations, s aabditio—1 obl to f o nsebe inq paya bleao parity with thecBOnds and being for the purpose of finale inq the acqui and i td1llation of additional improvements o s to the Project or fot the purpose of r eEu ndi ng the Pondsens nAdditional P rity Obligations shall be ued of rer c of any Bonds herein authorized, except upon the conaitionssa bdc the manner herelna Iter provided: (1) Additio..... alP ity Obligations shall be ued w of t e Holders of o hundred per�entt(100&)ti acgregate principal a oft Dods then Outstanding; provided, however, thatmb uch of the Bondholders shall be required for the of Additional P ity Obligations Eor refunding of .11 Ed— [hen Outs landing; and (2) The i approve o solution supplementing t rm en foa ceptable t e sela ndsbondlO making all of c covenants hereto cootalned applicable to such Additional ity 061iga Lions I." Ipt w e different provisions aapli cable [ och AdditionalrP i[y Obligations shall effectsupon the interestrIf the HOlaers of the Bo�asnnere.n anene a zea ana Chen outacanaiag; aea any oE tq ( The I sM1a11 not be in default i performing s the c and obligations a med under t solution ory her eunder and all pa ymen[su r equiredr' o have been made i the a and u nds, as provided h undez, shallnave hbeen cmades to the full extent require de and 19) o aea Additional P it Obligations shall be i reof shall r salt i the f of hanys eonase then0 --ge be comen[ xable for Federaltr x purpos s be (and t 1 provide olders ow opinion of a tna11y r cognized 111d set t effect t eBonds will not come taxable as a resole of such „ssuance(; and T Aaaf [i onal P ity Obligations It asM1al1 be ued if of i the I s debt rage with respects[ 'he Utilities 5 andv the Bonds, including any parity obligations previously or proposed Co be issued, is less Chan 1— to 1. och Additional P icy Obligaci ons s 1 be deemed t ve been i aea pursuane e enis R solution chehs onaaha riginally a zed and i aea pursuant C ChisaResoluBion, ana ali Of the c and other provisions of this R solution (ex cepc Ovdetails o onds e inq B eAdaiti-I, Obligations ti ithl. shallcbI forcthe equal benefit, protec� ions andts i[y of [he holders of any Bonds r igina lay authorized andei ued pursuant to [his Resolution and Molders of a onds evidencing additional obligations su bs equentlync ted within [he limitations of and i ompliance with t subsection. All of such Bonds, regardlessnOf the C sof their i shall rank equally wit' respect t theitmIien on the Utilities B and tneit s and o ity Eor payment Erom saidrr ithout preference of anyuBonds or coupon, if a y, over atysother. The t "Additional Parity Obligations", a sed in this subsection, shall not be deemed to include bonds, n ti Efcates o other obligations subsequently i ued PSt e lien Ofrwbich on the Utilities S su b11 M the pr for and superior lien o och Ut ilftiescServi ceaT aE Bands 1 ued pursuant to this A solution, ana the I shall n any obiigatiow er pays bie from c cil it f es s whi c' rankk equallya o lien and s and s yvfor payment fro 1t1h Utilities Service Taonds i 11.p rsuI I t tbis R solution a cep[ i t'emanner and undeu r the conditions provided in this subsection. �S) DCTEAMINATIDN El —ABILITY; I BST RATE ADJUSTMENT A IFICATIUN, the e ould occur N" T xa bility° Ithe n")h(as hereinaf ter'def fined) the interest r ether Bonds (the "Adjusted a e") from t of m bility" (as hereinafter defined i and through the dace of payment in full of t Bonds (the "Inclusion P iod")hsball b e plus a r additional o e percent fib) per a nshall be deemed t red upon C e dace Df Ai enbyi the Internal IIfuI tatu[oryhn of deficiency which a sects hh V effect' that' the i the Bonds i ncludable far s Federal i x purposes i e gross i of the holder If the Bondsno coupon the r eiptnbyh the Bondholder of a opinion Df 11y r cognie..'bond c se1 approved by thI Issuer (which approval shall not be a nably w eld) [ effect the Bonds i ncludable fort Federal puipos stheng ross i sIE the Bondholder. n thee' ntaof the o of the D nation, the Bonds shall bearVe interest a nt he AdjustedtElte from the D of Taxability (as natter defined) [ and through the date of payment in full ofr the Bonds. In the event — such Determination is II come. i.it ely preceding the D of T xa bility, and appropriate repayments of a te(iE any) sha 11 be paid c The t tIE'Taxability" m the earliesthe of Eecttve da[e'a ofaw the i t payable o Che Bonds is ncludable i the gross ii Ift" IUIndholde[ a result of the occurrence of any ei rcums[ances giving ..,III interest on the taxes owing by the Bondholder due co the failure e for Federal i x purposes for chat porcion of the n elusion P iod endingmwith the date of [he D Any surfing from such a Det"-inat o p1d any tend Stiesni ntha fotmlet i otherwise shall be paid on the i t payment date n ''ding the Determination. —te—t" solu[ionPxe ued i incerese rs aside fie aha11 oe'aeemea co rncluaetahaemean issuer is obligated to pay certain additional sums to the Determination -I—subsequent to payment of the Inds in full, specifically agrees and c ith the Sondholder to paysto each such Bondholder, as an indemnity, such additional herein. In addition t the foregoing indemnities and payments requited by t if any c ange in law o the e rpreta tioni thereofco s hereafter, o a nge ci the M Irpor a tII a or Prese�e��e aed-tioIhaate, and, as a resuie the riot ache qondn laer or former Eondnolder r ce opinion of a ualified t sel, a ceptablee tore and C ustee, the cost oB w nopic mall be paid by [hers tenet such a nge will r sole in (17 a disallowance, elimine[ion, reaucti on, disqualification oc loss of right to claim any deduction o [edit for federal o r locai x purposes o[ such ondholder I.I. an y[a Efilia tes grcup of w h Bondholder i ember )hereinafter referred t s"i, and/or (2) thewimpllitiln of any preEere nee, midim or other special tax "Tax"), and such Loss o[ Tax ie di[ectly o indirectly led to s ondholder't o rsh ip of the Bonds o eipt of i mtherefrom, then the Issuer agrees [ indemnify uch Bondholdeif x by i rng c payments to be made orcprev rous 1,T de to such Bondholdertwitbt required to be paid a salt of such Bondholder's receipt of such sums ( inc ludi ng 1ewlthou t limrtatron, any tax w-tax a deduc on) w ondholder after-tax e c yield andlo ..Ilan safte efax c h flows salting Heel e holding of s hods a the s tale vels whict would M1ave been realized if suchcchange vntlaw or �. nterpretatvon after-tax e c yield and -,ell letafter-tax ca h flows shall be determined on the basis of the assumptions that (i) the deduction o =edit if s ange i erpretation thereof didrn andc(ii) the Boce—d— h arginal federal, s andc local co[por which a e the highest ...ginal [ imposed byte ec layst appl i cable t uch ondholder. ne re Tforegoing indre emnifications shall repsent a contvnuing ligation of the Issuer which sha 11 su rvvve payment ob obligations under this A solution and the Bonds, and shall r marn n Eull force and effecteu til expiration of any applicable e cute of 1 Cations (orn limitation period) with respect t the n. cion ofvm the gross i of any s ondholder. Any such sums payable hereunder shallc beepayable bycthe Issuer on (60) days after the eltermina tion "' s - ANCE o E COVERAGE. The I shall budget each fiscal year a of the r sofethe Utilities Servrce max equal tc one h.ed[ed eve nty-fivepercent pay me of c e debt s n the fonds for each s year i made the I snail n reduce Ehe a t budgeted for .0 chpeyment. The issuer .hail provide the Bole- e certified copy of the 30th day of September of each year beginning September 30, 1986. (i) L x epeal the ordinance now I effect levying the UtI lr tres Servace and will n end o modify s ordinance i any m impair o tadversely affect thehpower and obligationnofr[he o levyrand collect s h Utilities LT impair sIdvers ely affect i any m the pledge of Utilities made herein o rights of t holders of [ ondsCe ha 11 beta onditio nallyeand i ca bly obligatedFesos long a any of the Bonds or the i thereon are outstanding and unpaid, to levy and colieccnsucelti li ties ary to pay t e deb[ s requirements o Dods and the other payments provided Eor herein. nTh�is provision shallkn t be c ued to pre nable r of races of such Utte e Service Tae of longsas proceedss of ns Utilities Service T o be collected by the Issuer i ach year thereafter, will beasufE ie nt to meet the requi. ementse.1 Bolds, and to make all ocher payments required hereunder in such year. (C) U 111.1 SERVICE T NOT B —11 To R The I_ has full power to irrevocably pledge the Uti1 iities Service n the pledging of t o Utilities Service T the m provided herein shall n t be subject t repea l� modification or impairment by any subsequent ordinance, resolution, or other (N) coNSTRUCTION REQUIREMENTS. shall provide Holder w copy of the Plans and Specificatio r ons for t ject and tecce ral I c the Proje c tw—htc sh allbewect subjt ero appval If the Holder. The generaltc n Project shall be bonded in ant a holder oayrr nably requi Additionally the I shallpr —de the Hold- a vey of t eal propertyedesc iibed on Exhibit "A hereto which survey sha11 be �iiE.fv�L•Sf[EfS•ffitILP: any Bondholder any lien o any real property of the Issuer o of any r sident o inhabitant thereof, or any real property served by the faciiit i es of said Project. If Default" under this R solution, and the t ent of Default" shall m whenever it sed in [his Resolution, any one or more of thenfollowing events. (1) default i e c due and pun ua1 payment of any principal or interest required to bepaid under the Bonds; ta) aef ault i e aae ana puneeual pavmanc o r equiredhto be paid h under and the onsof such default for a period of ten (1 days toot (3) default i e performance of Che 2 obligation Co keep the Project insured as required it,obi l.ity t cry o operation of the project o to try o its oobligacionstunder this a solution o the o nds, o the c t by the Issuer of a voluntary under any presentmor future federal bankruptcy aI. a oyes r federal o e III, o the c t ey i o the appointment of o state possession by a ligeiaazor, re eoaaan o other s mime oeeicial o fotheeZssuer, or of all or any subs tan[ial portion of its the creditors, or the failure of the Issuer generally to any a e by the Z n furtherance of any of t foreg ing, [ entryrof a decree o order Eor relief by a court havingjurisdiction ie the premises in respect of fut e federal b ruptcy a any s milar federal o e law, o tneenty rataecree o order by a having j is di ctionnin the premises in res peer of ehe milar official of the I of all o any substantial portion of r ordering the winding up or liquidation of i taffairssandr[ ontinuance of any such decree o order e toyed and ineffect for a period of nr nety (9.) consecutive days;or representation o my o the t of t rn this R s I lu tion,rther Bonds and parc hofls default or breach for a period of nt ctyi(30) daysefter notice of s h default h s been given t the I r by the Holder, which n sha ill specify t eacofusuch default or bcha nd require i o be r medied and s ate t ha[ such notice rs a It ce of Defaul [e he reunder� et period the issuer has, in the sole opinion of the Trustee, older may e end said period to provide a opportunity for the default to be remedied; or (1) The e istence of any material s which i fal any m espe ct i any c Inca tet report s or other aocumentr f u rnished by the Ss suer or on its behalf pursuant to this Resoluhion or the Bonds; or SECTION 19. R any E of Default r eEexxed I. n Sectill 1PEbereofe sha 11 h red and be ontinuin the Holder may e uof t e following medial steps, provided t oo£ [ of Oef aulf h n given t the I ruby t Holdereandet sucb Event of --it and all o of Oefault h theretofore been cured within anyeapplicable cure periodtprovided in section — (i) Holder may, at its option, declare the unpaid [hereon to be .immediately due and payable, w eupon the na11 become immediately due and payable; and (ii) t Holde[ may, either at law o equity, by s a andamus r proceedings i any c of compe[enttjurisdiction, protect and enforce any and al It rights, including the right t th,employment of a tistinq under the laws of the o State of Florida, orgranted and contained herein, and may r by any applicable s o be performed by t by I t eoE. Nocb ing h hall b strued o grant t the rholder of the Bonds anywli en o any realon property of the Issuer or proceeds of ad valorem taxation Any bolder of Bonds, o any t ing for such ondhnlders i the m na£ teru provi ded, may e [ law equity,nby s andamus o other proceedingai any is of competent jurisdiction, protect and enforce any and all rights under [ of [ of Florida, or granted and ottai—d i this P solution, andsmay enforce and compel the performancenof all duties required by this R solution or by any applicable statutes to be performed by the Issuer or by any and r nable ee '—Illy'' fs of any Holder of Bonds, or ahyt[ usteee acting for —I,Bondholders in any such legal or equitable proceeding. Any r appointed pu rsuanc t s Section shall forthwitb, directly oz by h agents and a neys, collect and all the Utilities Service Tax, l,ai mply under e jurisdiction of the I — appointing such recer vex, with all of the provisions of thisResolution. thereon, ltd upon any other obligations and interest thereon shall have been paid and made good, and all defaults under ons e provisiof this l R hall h e been c red and made good, the [ thall longersc. llectva nd r y funds, upon the entryiofbbata ordholderof Bonds, t tIt any [rusteeaappbl—I s bsequen tdefau lt,a ny III Bondholders as hereinafter provided, shall Fave t right to s e the further III. intment of a receaverhuponmany such subsequent default. Such r sha 11, in the performance of the powers F ereinabove conferred upon him, be under t e direction and supervision of [he ..... making... sappoa intmene, s ll It all s be subject [ theorbers anddecrees of su cF c u and may to l ved thereby and a uccessor receiver ippointedin the discretion of such court. SECTION IG. AUTHORIZATION OF E LIVERY OF OOCU.MBNTS. mhe ,Mar 11 [ emIssuer andCt" EXECUTION OCleck of the r eby au tF orized and directed t n behalf of cne Ze scree and under i official seal, [heoBon dsUta zed Arbitrage C of irate and s r documentsnand <ific of the Issuer a may be r.N—.deby Ake —, erfiteI Eidson, Bond Counsel, 1 ection wit the issuance, sale and de livery of the 3ondsnn modification 11 endmen1 of t nany r solution enDete, t eof o suppl emen to SRt_It �may be made w the I__ ning o rthe older. of t o-thirds o e in principalu a of the Bonds then o and ing; provided, however, thatno modification or amendment shall permit a change 11 affecting the u onditional promise of the Issuer co pay t principal of and i sDods, a the s sha 11 become doe Ero til itiess eeNax, o reduce such percentage of Sol ders of tsuch Bonds required above for s modifications o amendments without to consent of — holders of all the Bonds to SECTION 12. s ABILITY OP INVALID e .ION. if any one ROV oft vaagreements or pro.oEY of t Resolution shouldbeheld c ary t ny aexprss eprovision of I.- o ary t the policy t of express I.though n expresslynproh i b i t ed. o against public policy, 0 1 for any hatsoever be held i valid, t uch cAh agreements o hall be nullnand mold i�an: deemed s eparater fromi t ing c , provisionslo agreemen cs, and i wayraffect c validity of all t other provisions of this Resolution or ofethe Bonds issued thereunder. SECTION 23. HEREATING CLAUSE. Al r solutions of the r parts t eof, i onf lict w h the provisions of thecent of such conflict, hereby ded anderepealed.e%