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R-0887-91 RESOLUTION NO. 887-91 RESOLUTION PROVIDING FOR THE ACQUISITION OF EQUIPMENT AND CONSTRUCTION OF CERTAIN PUBLIC IMPROVEMENTS TO BE UTILIZED BY MIAMI SHORES VILLAGE, FLORIDA; AUTHORIZING THE ISSUANCE BY THE VILLAGE OF NOT EXCEEDING $443,782 CAPITAL IMPROVEMENT REVENUE BONDS TO FINANCE THE COST THEREOF; PLEDGING TO SECURE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON SUCH BONDS A PORTION OF CERTAIN PUBLIC SERVICE TAX REVENUES; AUTHORIZING A NEGOTIATED SALE OF THE BONDS; DESIGNATING THE BONDS FOR QUALIFICATION PURSUANT TO SECTION 265 (b) (3) OF THE INTERNAL REVENUE CODE; AND PROVIDING AN EFFECTIVE DATE. BE IT RESOLVED BY THE COUNCIL OF MIAMI SHORES VILLAGE, FLORIDA, AS FOLLOWS: TABLE OF CONTENTS Parte ARTICLE I GENERAL 1. 01 Definitions . . . . . . . . . . . . . . . . . . . 1 1. 02 Authority for this Instrument . . . . . . . . . . 3 1. 03 Findings . . . . . . . . . . . . . . . . . . . . . 3 1. 04 Project Authorized . . . . . . . . . . . . . . . . 4 ARTICLE II ALTIHORIZATION, TERMS, EXECUTION AND REGISTRATION OF BOND 2 . 01 Authorization of Bond . . . . . . . . . . . . . . 4 2 . 02 Payment of Bond and Interest . . . . . . . . . . . 4 2 . 03 Provisions for Redemption . . . . . . . . . . . . 5 2 . 04 Execution of the Bond . . . . . . , , . , , 6 2 . 05 Negotiability, Registration andAssignment . . . . 6 2 . 06 Bond Mutilated, Destroyed, Stolen or Lost . . . . 7 2 . 07 Form o: the Bond . . . . . . . . . . . . . . . . . 8 ARTICLE III COVENANTS, SPECIAL FUNDS 7-27D APPLICATION THEREOF 3 . 01 Bonds ::ot to Be General Obligations of Issuer 8 3 . 02 Security for Bonds . . . . . . . . . . . . . . . 8 3 . 03 Application of Section 2. 01 Bond Proceeds . . . . 8 3 . 04 Covenants of the Issuer . . . . . . . . . . . . . 9 ARTICLE IV MISCELLANEOUS PROVISIONS 4. 01 General Authority . . . . . . . . . . . . . . . . 15 4 . 02 No Personal Liability . . . . . . . . . . . . . 15 4 . 03 No Third Party Beneficiaries . . . . . . . . . 16 4 . 04 Compliance with Chapter 218, Part III, Florida Statutes . . . . . . . . . . . . . . . . . . . . . 16 4 . 05 Defeasance . . . . . . . . . . . . . . . . . . 16 4 . 06 Modification or Amendment . . . . . . . . . . . . 16 4 . 07 Sale of Section 2 . 01 Bonds . . . . . . . . . . . . 17 4. 08 Severability of Invalid Provisions . . . . . . . . 17 4 . 09 Repeal of Inconsistent Resolutions . . . . . . . . 18 -i- 4 . 10 Table of Contents and Headings not Part Hereof 18 4. 11 Effective Date . . . . . . . . . . . . . . . . . . 18 Appendix A - Additional Definitions Appendix B - Description of Section 2.01 Bonds Appendix C - Revenues Appendix D - Form of Bond -ii- ARTICLE I GENERAL 1. 01 Definitions. Unless the text clearly otherwise requires, when used in this Instrument the terms defined in Appendix A shall have the respective meanings assigned therein and the following terms shall have the following meanings: "Authorized Depository" shall mean the State Board of Administration and any state banking corporation or national banking association situated in the State of Florida which is a member of the Federal Deposit Insurance Corporation and which is eligible under the laws of the State of Florida to receive deposits of funds of the Issuer. "Authorized Investments" shall mean all accounts with the State Board of Administration of the State of Florida and, subject to any limitations which may be contained in Appendix F hereto, any investments which shall be authorized from time to time by applicable laws of the State of Florida for deposit or purchase by the Issuer for the temporary investment of its funds. Florida. "Bond Counsel" shall mean Foley & Lardner, Tampa, "Bond Register" shall mean the registration books of the Issuer, kept by the Issuer, for the purpose of registering ownership of the Bonds. "Bonds" shall mean the Section 2 .01 Bonds. "Bond Service Requirement" for any Bond Year shall mean the amount required to pay the principal of and interest on the Bonds during such Bond Year. "Bond Year" shall mean the period commencing on the day after the principal maturity date of the bonds each calendar year and ending on the principal maturity date of the Bonds in the next succeeding calendar year. Each Bond Year shall be designated with the number of the calendar year in which such Bond Year ends. "Closing" shall mean the delivery of the Bonds by the Issuer to the Purchaser upon payment by the Purchaser to the Issuer of the purchase price therefor in full. "Code" shall mean the United States Internal Revenue Code of 1986, as the same may be amended from time to time, or any successor enactment, and the regulations thereunder, whether proposed, temporary or final, promulgated by the Department of the Treasury, Internal Revenue Service. 1 "Cost" when used in connection with the Project, shall mean all expenses necessary, appurtenant or incidental to the acquisition, construction and installation of the Project, including without limitation the cost of any land or interest therein or of any fixtures, equipment or personal property necessary or convenient therefor, the cost of labor and materials to complete such construction, architectural, engineering and legal expenses, fiscal expenses, expenses for estimates of costs and of revenues, expenses for plans, specifications and surveys, interest during construction, administrative expenses related solely to the acquisition and construction of the Project and all expenses incident to the financing of the Project and the issuance of the Bonds. "Federal Securities" shall mean direct obligations of the United States of America (including obligations issued or held in book-entry form on the books of the Department of the Treasury) and obligations the principal of and interest on which are unconditionally guaranteed by the United States of America. "Fiscal Year" shall mean the period commencing on October 1 of each year and ending on September 30 in the next succeeding year. "_nst�vert" shall mean this resolution and all resolutions amendatc=y hereof which may be hereafter duly adopted by the Issuer. "C ner" shall mean the Person in whose name any outstanding Bond is registered according to the Bond Register. ":aymenz Dates" shall mean the dates designated as such in Appendix D hereto. "Person" shall mean an individual, a corporation, a partnership, an association, a joint stock company, a trust, any unincorporated organization or a government or political subdivision thereof. "Pledced Funds" shall mean the Revenues deposited in the Revenue Fund and the interest and earnings to be derived by the Issuer on the investment thereof. "Project Account" shall mean the special account created pursuant to Section 3 . 03 hereof into which the Issuer shall deposit a portion of Bond proceeds. "Purchaser" shall mean Bell Atlantic Tricon Government Finance, Inc. , the initial purchaser of the Section 2 . 01 Bonds. 2 "Registrar" shall mean the Issuer, or any bank or other qualified irstitutien hereafter appointed as successor registrar and paying agent -cr the Bonds by resolution of the Governing Body. "Reve-ue Fund" shall mean the account created pursuant to the provisions of Section 3 . 04 (A) of this Instrument, into which the Issuer shall deposit monthly, as received, the Revenues. "Revenues" shall mean the particular revenues of the Issuer described and defined in and by Appendix C hereto which the Issuer has pledged as security for the principal and interest on the Bonds. "Section 2 . 01 Bonds" shall mean the Bonds authorized to be issued pursuant to the provisions of Section 2 . 01 hereof. 1. 02 Authority for this Instrument. This Instrument is enacted pursuant to the provisions of the Act and other applicable provisions of lava. 1. 03 =indi nets. It is hereby found and determined that: (A) =he Project is necessary for the health, welfare, safety and ecorcm;: c= the citizens and inhabitants of the Issuer. (B) =t is necessary and in the best interest of the finances and ecencn_; of the Issuer that all or a part of the Cost of the Project :.e :financed with the proceeds from the sale of the Section 2 . 01 Bon::s. (C) .he Pledged Funds will be sufficient in each Bond Year to pay the =rin=ipal of and interest on the Section 2 . 01 Bonds which shall beccme due and payable in such Bond Year. It is deemed necessary and desirable to pledge the Pledged Funds to the payment of the principal c= and interest on the Section 2 . 01 Bonds. (D) The Issuer is not, under this Instrument, obligated to levy any ad valorem taxes on any real or personal property situated within its territorial limits to pay the principal of premium, if any, or interest on the Bonds. The Bonds shall not constitute a lien upon any property of the Issuer or situated within its territorial limits other than the Pledged Funds. (E) This Instrument is declared to be and shall constitute a contract between the Issuer and all Owners; and the covenants and agreements herein set forth to be performed by the Issuer are and shall be for the equal benefit, protection and security of all owners, all of which shall be of equal rank and without preference, priority or distinction of any of the Bonds over any other, except as hereinafter provided. 3 (F) The Governing Body is advised that due to the present volatility of the market for tax-exempt public obligations such as the Section 2 . 01 Bonds, it is in the best interest of the Issuer to sell the Section 2 .01 Bonds by a negotiated sale, allowing the Issuer to enter such market at the most advantageous time, rather than at a specified advertised future date, thereby permitting the Issuer to obtain the best possible price, interest rate and other terms for the Section 2.01 Bonds and, accordingly, the Issuer does hereby find and determine that it is in the best financial interest of the Issuer that a negotiated sale of the Section 2. 01 Bonds be authorized. The Purchaser has offered to purchase the Section 2 . 01 Bonds at the price and upon the terms herein stated and will file with the Issuer the Purchaser's Disclosure Statement in compliance with Section 218 .385 (4) , Florida Statutes, as amended; and the Governing Body does hereby find and determine that it is in the best financial interest of the Issuer that such offer be hereby accepted by the Issuer. (G) It is necessary and appropriate that the Issuer act as the registrar and a paying agent for the Bonds. 1. 04 Prosect Authorized. The acquisition, construction and installation of the Project is hereby authorized. ARTICLE II AUTHORIZATION, TERMS, EXECUTION AND REGISTRATION OF BOND 2 . 01 Authorization of Bond. Subject and pursuant to the provisions of this Instrument, a fully registered obligation of the Issuer described in Appendix C hereto is hereby authorized to be issued in the form of Appendix D, with such changes, amendments, modifications, insertions, and additions as may be approved by the signatories thereto, for the purpose of financing all or a part of the Cost of the Project and such obligations are to be registered in the name of the Purchaser in the aggregate principal amount of the Bonds. 2 . 02 Payment of Bond and Interest. The Bond shall be payable as to both principal and interest at the principal office of the Registrar in lawful money of the United States of America. The interest and principal payable on the Bond on any Payment Date will be paid by check or draft of the Registrar to the Owner in whose name such Bond shall be registered at the close of business on the date which shall be the fifteenth day (whether or not a business day) next preceding such Payment Date. In the event the interest and principal payable on the Bond is not punctually paid or duly provided for by the Issuer on such Payment Date, such defaulted interest and principal will be paid to the Owner in whose 4 name such Bond shall be registered at the close of business on a special record date for the payment of such defaulted interest as established by notice to such Owner, not less than ten (10) days preceding such special record date. From and after any maturity date of the Bond (deposit of moneys and/or Federal Securities for the payment of the principal and interest on such Bonds or part thereof having been made by the Issuer with the Registrar) , notwithstanding that Bond shall not have been surrendered for cancellation, no further interest shall accrue upon the principal of the Bond, no interest shall accrue upon the interest which shall have accrued and shall then be due on such date, and the Bond shall cease to be entitled to any lien, benefit or security under this Instrument, and the Owner shall have no rights in respect of the Bond except to receive payment of such principal and unpaid interest accrued to the maturity date. 2 . 03 Provisions for Redemr)tion. The Section 2 . 01 Bond shall be redeemable prior to the stated date of maturity only upon such terms and conditions as may be provided in the form of the Bond set out in Appendix D hereto. Unless waived by any Owner of the Bond to be redeemed, notice of redemption of the Bond prior to maturity shall be given by the Registrar on behalf of the Issuer by mailing a copy of an official redemption notice by registered or certified mail at least 30 days and not more than 60 days prior to the date fixed for redemption to the Owner of the Bond to be redeemed at the address of such Owner shown on the Bond Register or at such other address as shall be furnished in writing by such Owner to the Registrar. Every official notice of redemption shall be dated and shall state: (1) the redemption date, (2) the redemption price, (3) that on the redemption date the redemption price will become due and payable upon each such Bond or portion thereof called for rede=ption, and that interest thereon shall cease to accrue from and after said date, and (4) that such Bonds to be redeemed, in whole but not in part, are to be surrendered for payment of the redemption price at the principal office of the Registrar. Prior to any redemption date, the Issuer shall deposit in a special segregated account for the benefit of the Owner an amount of money sufficient to pay the redemption price of all the Bonds or portions of Bonds which are to be redeemed on that date. 5 Official notice of redemption having been given as aforesaid, the Bonds or portions of the Bond to be redeemed shall, on the redemption date, become due and payable at the redemption price therein s=ecified, and from and after such date (unless the Issuer shall default in the payment of the redemption price) such Bonds or portions of the Bond shall cease to bear interest. Upon surrender for redemption in accordance with said notice, such Bonds shall be paid by the Registrar at the redemption price. Each check or other transfer of funds issued by the Registrar for the purpose of the payment of the redemption price of the Bond being redeemed shall identify by 'issue and maturity, the Bonds being redeemed with the proceeds of such check or other transfer. Installments of interest due on or prior to the redemption date shall be payable as herein provided for payment of interest. All Bonds which have been redeemed shall be cancelled and destroyed by the Registrar and shall not be reissued. 2 . 01-4t Execution of the Bond. The Bond shall be executed in the name of the Issuer with the manual signature of the Designated Office= and the corporate seal of the Issuer shall be imprinted thereon:, attested and countersigned with the manual signature of the Clerk. In case any one or more of the officers who shall have signed or sealed the Bond or whose facsimile signature shall appear thereon shall cease to be such officer of the Issuer before such Bond has been actually sold such Bond may nevertheless be sold as herein provided and may be issued as if the person who signed or sealed the Bond had not ceased to hold such office. The Bond may be signed and sealed on behalf of the Issuer by such person. «he at the actual time of the execution of the Bond shall hold the proper office of the Issuer, although at the date of such Bond such erson may not have held such office or may not have been so authorized. The Issuer may adopt and use for such purposes the facsimile signatures of any such persons who shall have held such offices at any time after the date of the adoption of this Instrument, not-W4 thstanding that either or both shall have ceased to hold such office at the time the Bond shall be actually sold. 2 . 05 Negotiability, Registration and Assignment. The Bond shall be and shall have all the qualities and incidents of negotiable instruments under the law merchant and the Uniform Commercial Code of the State of Florida, subject to the provisions for registration and transfer contained in this Instrument and in the Bond. Each Bond shall be transferable only upon the Bond Register of the issuer, at the principal office of the Registrar, upon delivery to the Registrar of (i) a written instrument or instruments of transfer in form and with guarantee of signatures satisfactory to the Registrar, duly executed by the Owner of the Bonds to be transferred, or by such Owner's attorney duly authorized in writing, containing such identification information for the transferee as the Registrar shall reasonably require, (ii) 6 the certificate for the Bond or Bonds to be transferred and (iii) a notarized certificate from the Purchaser to the Issuer that such transfer is being undertaken after full compliance with all applicable securities laws. The Issuer hereby acknowledges that such transfer will in no way alter or affect the terms and conditions of the Bonds, and the rights and interests of the new Owner shall be the same as though such Owner was the original Purchaser of the Bond. In all cases of the transfer of any Bond, the Registrar shall enter the transfer of ownership in the Bond Register and deliver in the name of the transferee or transferees a new registered Bond or the Bond, of authorized denominations of the same maturity and interest rate for the aggregate principal amount which the Owner is entitled to receive at the earliest practicable time in accordance with the provisions of this Instrument. The Issuer or the Registrar may charge the Owner for every such transfer of the Bond sufficient to reimburse it for any tax, fee or other governmental charge required to be paid with respect to such transfer and may require that such charge be paid before any such transfer shall be made or any new Bond shall be delivered. The Issuer shall not assign any of its obligations under this Resolution, and no purported assignment thereof shall be effective. The Bond may be exchanged at the principal office of the Registrar for a like aggregate principal amount of the Bond of the same series, maturity and interest rate in other authorized denominations. The Issuer and the Registrar shall not be required to issue, transfer or exchange any Bonds during the period beginning with the fifteenth day next preceding either any Interest Payment Date or any day on which such Bonds shall have been duly called for redemption, in whole or in part and with respect to which the applicable notice of redemption shall have been duly given. New Bonds delivered upon any transfer or exchange shall be valid, limited obligations of the Issuer, evidencing the same debt as the Bonds surrendered, shall be payable solely from the Pledged Funds and shall be entitled to all of the security and benefits hereof to the same extent as the Bonds surrendered. The Issuer and the Registrar may treat the Owner of any Bond, whether or not such Bond shall be overdue, as the absolute owner thereof for all purposes, and any notice to the contrary shall not be binding upon the Issuer or the Registrar. 2 . 06 Bond !Mutilated, Destroyed, Stolen or Lost. In case any Bond shall become mutilated, or be destroyed, stolen or lost, the Issuer may in its discretion issue and deliver a new Bond of like tenor as the Bond so mutilated, destroyed, stolen or lost, in exchange and substitution for such mutilated Bond, upon surrender to and cancellation of such mutilated Bond by the Registrar, or in 7 lieu of and substitution for the Bond destroyed, stolen or lost, and upon the Owner furnishing to the Issuer satisfactory indemnity and complying with such other reasonable regulations and conditions as the Issuer may prescribe and paying such expenses as the Issuer may incur. If any such Bonds shall have matured or be about to mature, instead of issuing a substitute Bond the Issuer may pay the same, upon being indemnified as aforesaid, and if such Bond be lost, stolen or destroyed, without surrender thereof. Any such duplicate Bonds issued pursuant to this section shall constitute original, additional contractual obligations on the part of the Issuer whether or not the lost, stolen or destroyed Bonds be at any time found by anyone, and such duplicate Bonds shall be entitled to equal and proportionate benefits and rights as to lien on and source and security for payment from the Pledged Funds to the same extent as all other Bonds issued hereunder. 2. 07 Form of the Bond. The text of the Bond shall be in substantially the form therefor provided in Appendix D hereto, with only such omissions, insertions and variations as may be necessary and/or desirable (which necessity and/or desirability shall be presumed by the Issuer' s delivery of such Bonds to the Purchaser) . ARTICLE III COVENANTS, SPECIAL FUNDS PAID APPLICATION THEREOF 3 . 01 Bonds Not to Be General Obligations of Issuer. Neither the Bonds nor the interest thereon shall be or constitute general obligations or indebtedness of the Issuer as "bonds" within the meaning of Article VII, Section 12 of the Constitution of Florida, but shall be payable solely from and secured by the Pledged Funds as herein provided. No Owner shall ever have the right to compel the exercise of any ad valorem taxing power to pay such Bond or be entitled to payment of such Bond from any moneys of the Issuer, except from the Pledged Funds in the manner provided herein. 3 . 02 Security for Bonds. The payment of the principal of and interest on the Bonds shall be secured forthwith equally and ratably by a pledge of and lien upon the Pledged Funds. The Issuer does hereby irrevocably pledge the Pledged Funds to the payment of the principal of and interest on the Bonds and to the payment to the Owner at the times provided of the sums required to secure to the Owners thereof the payment of the principal of and interest and premium, if any, on the Bonds as the same shall become due. 3 . 03 Application of Section 2 . 01 Bond Proceeds. The Issuer has established with an Authorized Depository an account (the "Project Account") into which shall be deposited the proceeds 8 from the sale of the Section 2.01 Bonds and the additional funds, if any, required to assure payment in full of the Cost of the Project. There shall exist no lien upon or pledge of funds in the Project Account in favor of the Owners, and the Owners shall have no duty or obligation to see that the proceeds of the Section 2 . 01 Bonds shall be applied as herein specified or that the moneys in the Project Account shall be expended in the manner provided in this section, however the Owner may request that the Issuer provide invoices reflecting payment for the Cost of the Project. Moneys deposited from the sale of the Bonds in the Project Account shall be expended only for Costs of the Project and shall be continuously secured by such Authorized Depository in the manner prescribed by the laws of the State of Florida relating to the securing of funds of the Issuer. The Issuer may direct the Authorized Depository to invest in Authorized Investments all or any portion of such funds on deposit in the Project Account which shall not be needed immediately to pay items of the Cost of the Project. The earnings from any such investment shall be deposited in the Project Account. Provided, however, anything herein to the contrary notwithstanding, no use will be made of the proceeds of the Section 2. 01 Bonds which, if such use were reasonably expected on the date of issuance of the Section 2 . 01 Bonds, would cause the same to be "arbitrage bonds" within the meaning of the Code. The Issuer will at all times while the Section 2 . 01 Bonds and the interest thereon shall remain outstanding and unpaid comply with the requirements of Section 148 of the Code. 3 . 04 Covenants of the Issuer. So long as any of the principal of or premium, if any, or interest on any of the Bonds shall be outstanding and unpaid, or until provision for payment thereof shall have been made within the meaning of Section 4. 05 hereof, the Issuer covenants with the Owners as follows: (A) Revenue Fund. The Issuer covenants and agrees that it will establish (or has established) with an Authorized Depository a special account into which the Issuer shall deposit the Pledged Revenues for the repayment of the Bonds in an amount which will be sufficient to pay the next succeeding interest and principal (and redemption premium, if any) due on the Bonds. The Revenue Fund shall be held by the Issuer and expended and applied by the Issuer only in the manner specified in this section. The Issuer covenants to pay therefrom all of the interest on the Bonds as the same shall come due and the principal of the Bonds on the Payment Dates therefor. At the end of each month after such Revenues have been deposited into the Revenue Fund to the extent required, the Issuer may withdraw the balance of the moneys on deposit in the Revenue Fund, if any, and any interest or other earnings which may accrue 9 thereafter, to the extent the balance of such funds exceeds the amount due the Owner on the next succeeding Payment Date, whereupon the lien in favor of the Bonds upon the Pledged Funds so withdrawn shall be and is hereby released, and such moneys and earnings so withdrawn may be used by the Issuer for any lawful public purpose. (B) Trust Funds. The Revenue Fund shall constitute a trust fund for the purposes provided herein for such funds. All moneys on deposit therein, except those invested as hereinafter provided, shall be continuously secured in the same manner as deposits of funds of the Issuer are required to be secured by the laws of the State of Florida. There is hereby created a lien upon such funds in favor of the Owners until the moneys deposited therein shall have been applied in accordance with this Instrument. Moneys on deposit to the credit of the Revenue Fund may be invested in Authorized Investments which shall mature not later than the date on which such moneys shall be needed to pay the principal of and interest on the Bonds in the manner herein provided. The securities so purchased as an investment of funds shall be deemed at all times to be a part of the Revenue Fund. The cash required to be accounted for in any of the funds and accounts created pursuant to Sections 3 . 03 and 3 . 04 hereof may be deposited in a single account with an Authorized Depository, and the moneys allocated to such funds and accounts may be invested in a common investment pool, provided that adequate accounting records are maintained to reflect and control the restricted allocation of the cash on deposit therein and such investments for the purposes of such funds and accounts as herein provided. The designation and establishment of the funds and accounts in and by this Instrument shall not be construed to require the establishment of any completely independent, self-balancing fund as such term is commonly defined and used in governmental accounting, but rather is intended solely to constitute an earmarking of certain revenues for certain purposes and to create a lien upon and pledge thereof in favor of the Bonds and establish certain priorities for application of such revenues as herein provided. (C) Issuance of Additional Junior and Subordinate Debt Payable from the Pledged Funds. The Issuer covenants and agrees that while any Bonds shall be outstanding it will not issue any other obligations payable from or secured by the Pledged Funds or any part thereof on a junior and subordinate basis, unless the lien on and pledge of all or part of the Pledged Funds in favor of such obligations shall be junior and subordinate in all respects to the lien thereon and pledge thereof in favor of the Bonds and each such obligation shall contain on its face a statement to that effect. (D) Levy of Utility Service Taxes. The Issuer shall not repeal the ordinances now in effect levying the Utility Service 10 Taxes and will not amend or modify said ordinances in any manner so as to impair or adversely affect the power and obligation of the Issuer to levy and collect the Utility Service Taxes or impair or adversely affect in any manner the pledge of the Utility Service Taxes made herein or the rights of the Owners. The Issuer shall be unconditionally and irrevocably obligated, so long as any of the Bonds or the interest thereon are outstanding and unpaid, to levy and collect the Revenues at such rates, not exceeding the maximum rates permitted by law, as shall be sufficient to pay, as the same shall become due, the principal of and interest on the Bonds. This provision shall not be construed to prevent reasonable revisions of the rates of the Revenues as long as the proceeds of the Revenues to be collected by the Issuer in each year thereafter, will be sufficient to pay, as the same shall become due, the principal of and interest on the Bonds. (E) Events of Default and Remedies. If one or more of the following events, herein called "Events of Default, " shall happen, that is to say, in case: (1) default shall be made in the payment of the principal or redemption price of any Bond when the same shall become due and payable, either at maturity or by proceedings for redemption or otherwise; or (2) default shall be made in the payment of any installment of interest on any Bond when and as such installment of interest shall become due and payable; or (3) the Issuer shall (1) admit in writing its inability to pay its debts generally as they become due, (2) file a petition in bankruptcy or take advantage of any insolvency act, (3) make an assignment for the benefit of its creditors, (4) consent to the appointment of a receiver of itself or of the whole or any substantial part of its property, or (5) be adjudicated a bankrupt; or (4) a court of competent jurisdiction shall enter an order, judgment or decree appointing a receiver of the Pledged Funds or any part thereof, or of the whole or any substantial part of the Issuer's property, or approving a petition seeking reorganization of the Issuer under the federal bankruptcy laws or any other applicable law or statute of the United States of America or the State of Florida pertaining to bankruptcy or insolvency, and such order, judgment or decree shall not be vacated or set aside or stayed within 60 days from the date of the entry thereof; or (5) under the provisions of any other law for the relief or aid of debtors, any court of competent jurisdiction shall assume custody or control of the Pledged Funds, or any part thereof, or of the Issuer or of the whole or any substantial part of the Issuer's property, and such custody or control shall not be terminated or 11 stayed within 60 days from the date of assumption of such custody or control; or (6) the Issuer shall default in the due and punctual performance of any other of the covenants, conditions, agreements and provisions contained in the Bonds or in this Instrument on the part of the Issuer to be performed, and such default shall continue for 30 days after written notice specifying such default and requiring the same to be remedied shall have been given the Issuer by the Owners of not less than 25% in principal amount of the Bonds then outstanding; then in each and every such case any Owner of the Bonds affected by the Event of Default and then outstanding hereunder or an agent or trustee therefor may proceed to protect and enforce its rights and the rights of the Owners by a suit, action or special proceeding in equity or at law, by mandamus or otherwise, either for the specific performance of any covenant or agreement contained herein or in aid or execution of any power herein granted or for any enforcement of any proper legal or equitable remedy (including the appointment of a receiver) as said Owner or Owners shall deem most effectual to protect and enforce the rights aforesaid. No remedy herein conferred upon or reserved to the Owners is intended to be exclusive of any other remedy or remedies, and each and every such remedy shall be cumulative, and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity or by statute. No delay or omission of any Owner to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver of any such default, or an acquiescence therein; and every power and remedy given by this section to the Owners may be exercised from time to time, and as often as may be deemed expedient. Nothing herein, however, shall be construed to waive any venue privileges of the Issuer or to grant to any Owner any right to or lien on the Project or any part thereof or on any other property or income of the Issuer or situated within its territorial limits except the Pledged Funds. If an Event of Default shall happen and shall not have been remedied, the Issuer or a receiver appointed for the purpose shall apply all Pledged Funds as follows and in the following order: (1) to the payment of the reasonable and proper charges, expenses and liabilities of the receiver, the Registrar and the paying agents hereunder; 12 (2) to the payment of the interest and principal or redemption price then due on the Bonds, as follows: Unless the principal of all the Bonds shall have become due and payable, all such moneys shall be applied first: to the payment to the Persons entitled thereto of all installments of interest then due, in the order of the maturity of such installments (with interest on defaulted installments of interest at the rate or rates borne by the Bonds with respect to which such interest is due to the extent permitted by law) , and, if the amount available shall not be sufficient to pay in full any particular installment, then to the payment ratably, according to the amount due on such installment, to the Persons entitled thereto, without any discrimination or preference; second: to the payment to the Persons entitled thereto of the unpaid principal of any of the Bonds which shall have become due at maturity or upon mandatory redemption prior to maturity (other than Bonds called for redemption for the payment of which moneys are held pursuant to the provisions of Section 4 . 05 of this Instrument) , in the order of their due dates, with interest upon such Bonds at the rate or rates borne by such Bonds, from the respective dates upon which they became due, and, if the amount available shall not be su'ficient to pay in full Bonds due on any particular date, together with such interest, then to the payment first of such interest, ratably according to the amount of such interest due on such dates, and then to the payment of such principal, ratably according to the amount of such principal due on such date, to the Persons entitled thereto without any discrimination or preference; and third: to the payment of the redemption , premium on and the principal of any Bonds called for optional redemption pursuant to the provisions of this Instrument. If the principal of all the Bonds shall have become due and payable, all such moneys shall be applied to the payment of the principal and interest then due and unpaid upon the Bonds, with interest thereon as aforesaid, without preference or priority of principal over interest or of interest over principal, or of any installment of interest over any other installment of interest, or of any Bond over any other Bonds, ratably, according to the amounts 13 due respectively for principal and interest, to the Persons entitled thereto without any discrimination or preference. (F) Records and Audits. The Issuer shall keep books and records of the Pledged Funds, which such books and records shall be kept in accordance with other books, records and accounts of the Issuer, and any owner shall have the right, at all reasonable times, to inspect such books and records. So long as any of the Bonds shall be outstanding, the Issuer will furnish on or before one hundred eighty (180) days after the close of each Fiscal Year, to any Owner who shall request the same in writing, copies of an annual audit report prepared by an independent certified public accountant or an auditing official of the State of Florida, covering for the preceding Fiscal Year, in reasonable detail, the financial condition of the Issuer, receipts of the Revenues and all transactions in the Revenue Fund. (G) Fidelity Bond. The Issuer will require each employee who may have possession of any Pledged Funds to be covered by a fidelity bond written by a responsible indemnity company in an amount fully adequate to protect the Issuer from loss. (H) Creation of Superior Liens. The Issuer covenants that it will not issue any other notes, bonds, certificates of obligations of any kind or nature or create or cause or permit to be created any debt, lien, pledge, assignment or encumbrance or charge payable from or enjoying a lien upon any of the Pledged Funds ranking prior and superior to the lien created by this Instrument for the benefit of the Bonds unless the Issuer receives the written consent to such a lien from 75% in principal amount of the Owners of the Bonds. (I) Federal Income Tax Covenant. (1) The Issuer covenants that it will not make any investments or acquiesce in the making of any investments by any depository pursuant to or under the provisions of this Instrument which could cause the Bonds to be "arbitrage bonds" within the meaning of Section 148 of the Code. The Issuer covenants and agrees that it will take any reasonable action required to be taken pursuant to the nonarbitrage certificate or instructions from bond counsel, whether delivered in connection with or subsequent to the issuance and sale of the Bonds, in order to comply with all provisions of the Code compliance with which is required to maintain the tax-exempt status of the interest payable on the Bonds. (2) The Issuer hereby covenants that it will use its best efforts to comply with all provisions of the Code necessary to maintain the exclusion of interest on the Bonds from the gross income of the Holders thereof for federal income tax purposes. 14 (3) The Issuer represents and covenants that it is a governmental unit with general taxing powers; that at least 95% of the net proceeds (as defined in the Code) of the Bonds will be used for local governmental activities of the Issuer; and that the aggregate face amount of all tax-exempt obligations, other than private activity bonds (as defined in the Code, issued by or on behalf of the Issuer (and *all subordinate entities of the Issuer) , during the 1991 calendar year is not reasonably expected to exceed $5, 000, 000. (4) The Issuer desires to qualify for the exception contained in Section 265 (b) (3) of the Code which would allow financial institutions a deduction for interest expense allocable to tax-exempt obligations acquired after August 7, 1986, and therefore hereby designates the Bonds for the purpose of qualifying for such exception. The Issuer does hereby find and determine that the aggregate face amount of all qualified tax-exempt obligations, including the Bonds issued by or on behalf of the Issuer during the 1991 calendar year is not expected to exceed $10, 000, 000 and that as of the date hereof no tax-exempt obligations (including leases) issued or authorized to be issued by or on behalf of the Issuer other than the Bonds, have been designated for the purpose of qualifying for such exception. ARTICLE IV MISCELLANEOUS PROVISIONS 4 . 01 General Authority. The members of the Governing Body and the Issuer' s officers, attorneys and other agents and employees are hereby authorized to do all acts and things required of them by this Instrument or desirable or consistent with the requirements hereof for the full, punctual and complete performance of all of the terms, covenants and agreements contained in the Bonds and this Instrument, and they are hereby authorized to execute and deliver all documents which shall be reasonably required by bond counsel or the Purchaser to effectuate the sale of the Section 2 . 01 Bonds to the Purchaser. 4. 02 No Personal Liability. No representation, statement, covenant, warranty, stipulation, obligation or agreement herein contained, or contained in any of the Bonds, or in any certificate or other instrument to be executed on behalf of the Issuer in connection with the issuance of any of the Bonds, shall be deemed to be a representation, statement, covenant, warranty, stipulation, obligation or agreement of any member of the Governing Body, officer, employee or agent of the Issuer in his or her individual capacity, and none of the foregoing persons nor any officer of the Issuer executing any of the Bonds, or any certificate or other instrument to be executed in connection with the issuance of any of the Bonds, shall be liable personally 15 thereon or be subject to any personal liability or accountability by reason of the execution or delivery thereof. 4 . 03 No Third Party Beneficiaries. Except as otherwise expressly provided herein or in the Bonds, nothing in this Instrument, or in the Bonds, expressed or implied, is intended or shall be construed to confer upon any Person other than the Issuer and the Owners any right, remedy or claim, legal or equitable, under and by reason of this Instrument or any provision hereof, or of the Bonds, all provision hereof and thereof being intended to be and being for the sole and exclusive benefit of the Issuer and the Persons who shall from time to time be the Owners. 4 . 04 Comnliance with Chapter 218 , Part III Florida Statutes. The Issuer hereby approves and authorizes bond counsel to complete and file with the Division of Bond Finance, Department of General Services of the State of Florida, an advance notice of the impending sale of the Bonds, and to perform any other acts as may be necessary to comply with Chapter 218, Part III, Florida Statutes, as amended. 4 . 05 Defeasance. If, at any time, the Issuer shall have paid, or shall have made provision for payment of, the principal, interest and redemption premiums, if any, with respect to any of the Bonds, then, and in that event, the pledge of and lien on the Pledged Funds in favor of the Owners of such Bonds shall be no longer in effect. For purposes of the preceding sentence, deposit by the Issuer of direct obligations of the United States of America (including obligations issued or held in book-entry form on the books of the Department of Treasury) , none of which permit redemption prior to maturity at the option of the obligor, in irrevocable trust with a banking institution or trust company, for the sole benefit of such Owners, in respect to which obligations the principal and interest received will be sufficient to make timely payment of the principal of and interest and redemption premiums, if any, on such Bonds, shall be considered "provision for payment. " Nothing in this section shall be deemed to require the Issuer to call any Bonds for redemption prior to maturity pursuant to any applicable optional redemption provisions, or to impair in any way the discretion of the Issuer in determining whether or not to exercise any such option for early redemption. 4 . 06 Modification or Amendment. Any modification or amendment of this Instrument or of any resolution amendatory hereof or supplemental hereto may be made with the consent in writing of the provider of municipal bond insurance insuring all of the Bonds then outstanding which shall be materially and adversely affected by such modification or amendment, if as a result of which insurance such Bonds shall be rated in the highest rating category by either Moody's Investors Service or Standard & Poor's Corporation; or if such Bonds shall not be so insured or such insurance provider shall be in default or bankrupt, with the 16 consent in writing of the Owners of fifty-one per centum (510) or more in principal amount of such Bonds; provided, however, that no such modif icatio-,. or amendment shall permit a change in the maturity of such Bonds, or a reduction in the rate of interest thereon or in the amount of the principal obligation thereof, or affecting the prcmise of the Issuer to pay the principal of and interest on such Bonds as the same shall become due from the Pledged Funds, or reduce the percentage of such Bonds the Owners of which are required to consent to any such modification or amendment without the consent of the Owners of one hundred per centum (1000) of such Bonds. This Instrument and any resolution amendatory hereof or supplem=ental hereto may be amended, to the extent that the amendment shall not materially and adversely affect any of the Bonds, without the consent of such insurance provider or any of the Owners for any of the following purposes: (1) To cure any ambiguity or formal defect or omission or to correct any inconsistent provisions in this Instrument, as supplemented, or to clarify any matters or questions arising hereunder. (2) To grant to or confer upon the Owners any additional rights, remedies, powers, authority or security that may lawfully be granted to or conferred upon the Owners. (3) =o add to the conditions, limitations and restrictions on to issuance of Bonds under the provisions of this Instrument other conditions, limitations and restrictions thereafter to be cbserved. (4) To add to the covenants and agreements of the Issuer in this Instrumen= other covenants and agreements thereafter to be observed by the Issuer or to surrender any right or power herein reserved to or conferred upon the Issuer. (5) Tc specify and determine any matters and things relative to the Bonds which are not contrary to or inconsistent with this Instrument as theretofore in effect. 4 . 07 Sale of Section 2 . 01 Bonds. The Section 2 .01 Bonds are sold and awarded to the Purchaser in accordance with the terms and conditions stated herein. The Designated Officer and the Clerk are hereby authorized and the other officers, agents and employees of the Issuer are hereby authorized and directed to conclude the issuance and delivery of the Section 2. 01 Bonds in accordance with the provisions thereof. 4 .08 Severability of Invalid Provisions. If any one or more of the covenants, agreements or provisions herein contained shall be held contrary to any express provision of law or contrary to the policy of express law, though not expressly prohibited, or against public policy, or shall for any reason whatsoever be held 17 invalid, then such covenants, agreements or provisions shall be null and void and shall be deemed separable from the remaining covenants, agreements or provisions and shall in no way affect the validity of any of the other provisions hereof or of the Bonds. 4. 09 Repeal of Inconsistent Resolutions. All resolutions or parts thereof in conflict herewith are hereby repealed to the extent of such conflict. 4. 10 Table of Contents and Headings not Part Hereof. The Table of Contents preceding the body of this Instrument and the headings preceding the several articles and sections hereof shall be solely for convenience of reference and shall not constitute a part of this Instrument or affect its meaning, construction or effect. 4. 11 Effective Date. This Instrument shall take effect immediately upon its adoption. PASSED, APPROVED AND ADOPTED this 1st day of October, 1991. COUNCIL OF MIAMI SHORES VILLAGE, FLORIDA (SEAL] By Steven Z6hnsbn Attest: Gall MacDonald, Clerk I, Gail MacDonald, Clerk of the Council of Miami Shores Village, Florida, hereby certify that the foregoing is a true and correct copy of Resolution No. 887-91 of said Council passed and adopted on October 1 , 1991 IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the Co * 1 this 1st day of October 19 91 un (OFFICIAL SEAL) Clerk 18 APPENDIX A ADDITIONAL DEFINITIONS (1991) . "Act" shall mean Chapter 166, Part II, Florida Statutes "Clerk" shall mean the Clerk of the Issuer. "Designated Officer" shall mean the Mayor of the Issuer. "Governing Body" shall mean the Council of the Issuer. "Issuer" shall mean Miami Shores Village, Florida. "Issuer's Counsel" shall mean Yates and Fann, Miami Shores, Florida. "Project" shall mean the acquisition of a street sweeper and a tub chipper and the construction, erection, renovation or reconstruction of additions, extensions and improvements to certain facilities of the Issuer's including certain street resurfacing, a fuel depot system, and crosswalk paving, and shall also include reimbursement to the Issuer for the purchase of a mower in June of 1991 in the amount of $12,200. Appendix A - Page 1 APPENDIX B DESCRIPTION OF SECTION 2. 01 BONDS The Section 2. 01 Bonds shall be known as 'Capital Improvement Revenue Bonds, Series 1991, " shall be dated as of October 1, 1991, and shall be issued as fully registered bonds in the principal amounts and bearing interest at the rate and payable on the Payment Dates stated in such Bond. Appendix B - Page 1 APPENDIX C The Revenues shall consist of the Utility Service Tax which is a portion of the Issuer's Public Service Taxes levied pursuant to Article III of the Miami Shores Village Code, and authorized pursuant to Florida Statute §166.231, which portion shall be the amounts collected by the Issuer as an excise tax upon the purchase of electricity within the Issuer. The Revenues shall not include the Public Service Tax imposed upon the purchase of metered gas, bottled gas, fuel oil, and telecommunication services, but rather shall only include the tax levied upon the purchase of electricity. The Revenue shall be exclusive of the deduction allowed under the Miami Shores Village Code for the seller of the electricity (currently Florida Power and Light Company, Inc. ) in the amount of one percent (1%) of the amount of the tax collected as compensation for keeping the records and collecting and remitting the revenue. Appendix C - Page 1 APPENDIX D FORM OF BOND REGISTERED October _, 1991 $443, 782 UNITED STATES OF AMERICA STATE OF FLORIDA MIAMI SHORES VILLAGE CAPITAL !MM- ROVEMENT REVENUE BOND, SERIES 1991 REGISTERED OWNER: Bell Atlantic Tricon Government Finance, Inc. PRINCIPAL AMOUNT: $443 ,782 MATURITY DATE: October _, 1997 FOR VALUE RECEIVED, Miami Shores Village, a municipal corporation and a political subdivision created and existing under and by virtue of the laws of the State of Florida (the "Issuer") , hereby promises to pay, solely from the special funds hereinafter described, to the Registered Owner identified above, or registered assigns as hereinafter provided, the Principal Amount identified above in installments in the amounts and on the- installment payment dates hereinafter provided, and interest on the unpaid balance of such Principal P�ount from the date identified above or from the most recent Payment Date (hereinafter defined) to which interest has been paid, at the rate of 7.4% per annum, on October of each Year commencing October , 1991 (the "Payment Dates") , until such Principal Amount shall Flava been paid, except as the provisions hereinafter set forth with respect to redemption prior to maturity may be and become applicable hereto. such Principal Amount and interest and the premium (if any) on this bond are payable in any coin or currency of the United States of America which, on the respective Payment Dates, shall be legal tender for the payment of public and private debts, at the registered address of the Owner hereof. Payments shall be made to the person in whose name this bond shall be registered on the registration books of the Issuer at the close of business on the date which shall be the fifteenth day (whether or not a business day) next preceding the Payment Date for such installment and shall be paid by a check or draft of the Issuer mailed to such registered owner at the address appearing on such registration books or at such other address as may be furnished in writing by such registered owner to the Issuer. In the event the interest on and the principal of this bond is not punctually paid or duly provided Appendix D - Page 1 for by the Issuer on such Payment Date, payment of each installment of such defaulted interest and principal shall be made to the person in whose name this bond shall be registered of thedef close aulof business on a special record date for the payor ed interest and principal as established by s notice tpreceding such registered days hereof, not less than ten (10) Y record date. This bond represents an authorized issue of Bonds in the aggregate principal amount of $443 ,782 (the "Bonds") issued to finance the acquisition of a street sweeper and a tub chipper and the construction, erection, renovation or reconstruction of additions, extensions and improvements to certain facilities of the Issuer's including certain street resurfacing, a fuel depot system, and crosswalk paving, and shall also include reimbursement to the Issuer for the purchase of a mower in June of 1991 in the amount of $12, 200 (the "Project") , under the authority of and in full compliance with the Constitution and statutes of the State of Florida, particularly Chapter 166, Part II, Florida Statutes, as amended, and Resolution No. duly adopted by the Issuer on (collectively, the "Resolution") , and is subject to all the terms and conditions of the Resolution. This bond and the interest and any premium hereon are payable solely from and secured by a prior lien upon and a pledge of all of the moneys of the Issuer which are deposited monthly with an Authorized Depository (as defined in the Resolution) into the Revenue Fund which are the moneys allocated and paid of the hesIssuer as Utility Service Taxes, which are a portion Public Service Taxes established pursuant to Section 166.231, Florida Statutes and the interest and earnings to be derived by the Issuer from the investment thereof (the "Pledged Funds") , all in the manner described in the Resolution. Neither this bond nor the interest or any premium hereon shall constitute a general indebtedness of the Issuer within the meaning of any constitutional or statutory provision or limitation, and neither lthe faith nor expressly credit of the Issuer is pledged for their payment. agreed by the owner of this bond that such owner shall never have the right to require or compel the exercise f dvalore taxing power of the Issuer to the payor ofsuchprincipal, interest and premium, if any, or the payment of any other payments lution. This bond and the obligation provided for in the Reso evidenced hereby shall not constitute a lien upon the Project or any other property owned by or situated within the territorial limits of the Issuer, but shall constitute a lien only from o n and shall be payable solelythe Pledged Funds in the mannerabove recited. The Bonds may bee prepaid in whole by the w th the following schedule:Issuer on any Payment Date in accordanc Appendix D - Page 2 [REDEMPTION PROVISIONS] Notice of such prepayment, unless waived, is to be given by the Issuer by mailing notice by registered or certified mail at least 30 days and not more than 60 days prior to the date fixed for prepayment to the registered owners of the Bonds to be prepaid at such owners' addresses shown on the registration books maintained by the Issuer. This bond is transferable only upon the registration books of the Issuer, as registrar, or such other registrar as the Issuer shall hereafter duly appoint (the "Bond Registrar") , but only in the manner, subject to the limitations and upon payment of the charges provided in the Resolution, and upon surrender of this bond to the Bond Registrar, with an instrument or instruments of transfer in form and with guaranty of signature satisfactory to the Bond Registrar, duly executed by the registered owner hereof, or by such owner's attorney duly authorized in writing and containing satisfactory information identifying the transferee. In all cases of the transfer of this bond, the Bond Registrar shall enter the transfer of ownership in such registration books and shall deliver in the name of the transferee or transferees a new Bond or Bonds of authorized denomination or denominations and of the same maturity, interest rate and aggregate principal amount, at the earliest practicable time but only upon compliance with Section 2 . 05 of the Resolution. Prior to every such transfer the Bond Registrar shall be entitled to receive from the owner of this bond a sum sufficient only to reimburse it for any tax, fee or other governmental charge required to be paid with respect to such transfer. It is hereby certified and recited that all acts, conditions and things required to exist, to happen and to be performed precedent to and in the issuance of this bond, exist, have happened and have been performed, in regular and due form and time as required by the Constitution and laws of the State of Florida applicable hereto, and that the issuance of the Bonds does not violate any constitutional, statutory or charter limitations or provisions. This bond is and has all the qualities and incidents of a negotiable instrument under the law merchant and the Uniform Commercial Code of the State of Florida. IN WITNESS WHEREOF, Miami Shores Village, Florida, has issues this bond and has caused the same to be signed with the signature of the Mayor of its Village Council and attested and countersigned with the signature of the Clerk of the Village Appendix D - Page 3 Council, and of its corporate seal to be imprinted hereon, all as of the date first above mentioned. MIAMI SHORES VILLAGE, FLORIDA (SEAL] By: A9W...' '4�z_ '4� Its: MyI17 ATTESTED AND COUNTERSIGNED: Clerk ASSIGNMENT AND TRANSFER FOR VALUE RECEIVED, the undersigned sells, assigns and t r a n s f e r s u n t o the within bond and does hereby irrevocably constitute and appoint as attorneys to register the transfer of the said bond on the books kept for registration thereof with full power of substitution in the premises. Dated: NOTICE: The signature to this Signature Guaranteed: assignment must correspond with the name of the Registered Holder as it appears upon the face of the within Bond in every particular, without NOTICE: Signature(s) must alteration or enlargement or any be guaranteed by a member change whatever and (i) the Social of the New York Stock Security or other identifying number Exchange or a commercial of such assignee and (ii) proof of bank or trust company. compliance with Section 2 .05 of the Resolution, must be supplied. Q%WP51ND0C=E aELR=2j9rA91ITPA819I6EDeb Appendix D - Page 4