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R-1082-04 t Res®(Aw t iolSa-04 dW VILLAGE OF MIAMI SHORES,FLORIDA GENERAL OBLIGATION BONDS, SERIES 2004 RESOLUTION ADOPTED JULY 20,2004 TABLE OF CONTENTS Page ARTICLE I GENERAL.................................................................................................................. 1 Section 1.01 DEFINITIONS............................................................................................ 1 Section 1.02 AUTHORITY FOR RESOLUTION .......................................................... 7 Section 1.03 RESOLUTION TO CONSTITUTE CONTRACT..................................... 7 Section 1.04 FINDINGS.................................................................................................. 7 Section 1.05 AUTHORIZATION OF THE PROJECT................................................... 8 ARTICLE II AUTHORIZATION, TERMS, EXECUTION AND REGISTRATION OF BONDS8 Section 2.01 AUTHORIZATION OF BONDS............................................................... 8 Section 2.02 APPLICATION OF BOND PROCEEDS .................................................. 9 Section 2.03 EXECUTION OF BONDS......................................................................... 9 Section 2.04 AUTHENTICATION................................................................................. 9 Section 2.05 TEMPORARY BONDS ........................................................................... 10 Section 2.06 BONDS MUTILATED, DESTROYED, STOLEN OR LOST................ 10 Section 2.07 INTERCHANGEABILITY,NEGOTIABILITY AND TRANSFER.............................................................................................. 10 Section 2.08 PROVISIONS FOR REDEMPTION ....................................................... 11 Section 2.09 FORM OF BONDS................................................................................... 13 ARTICLE III SECURITY, SPECIAL FUNDS AND APPLICATION THEREOF.................... 19 Section 3.01 PLEDGE OF AD VALOREM TAX REVENUES .................................. 19 Section 3.02 PROJECT FUND...................................................................................... 19 ARTICLE IV COVENANTS OF THE ISSUER.......................................................................... 21 Section 4.01 COVENANTS OF THE ISSUER............................................................. 21 Section 4.02 FEDERAL INCOME TAX COVENANTS ............................................. 23 i Section4.03 NO IMPAIRMENT.................................................................................. 24 Section4.04 ANNUAL AUDIT.................................................................................... 24 Section 4.05 BOOKS AND RECORDS........................................................................ 24 Section 4.06 BUDGET PROCESS................................................................................ 24 ARTICLE V DEFAULTS AND REMEDIES.............................................................................. 25 Section 5.01 EVENTS OF DEFAULT.......................................................................... 25 Section 5.02 REMEDIES ON DEFAULT..................................................................... 25 Section 5.03 DIRECTIONS TO TRUSTEE AS TO REMEDIAL PROCEEDINGS....................................................................................... 26 Section 5.04 REMEDIES CUMULATIVE................................................................... 26 Section 5.05 WAIVER OF DEFAULT......................................................................... 26 Section 5.06 APPLICATION OF MONEYS AFTER DEFAULT ............................... 26 Section 5.07 CONTROL BY INSURER....................................................................... 27 ARTICLE VI SUPPLEMENTAL RESOLUTIONS.................................................................... 28 Section 6.01 SUPPLEMENTAL RESOLUTION WITHOUT BONDHOLDERS' CONSENT................................................................ 28 Section 6.02 SUPPLEMENTAL RESOLUTION WITH BONDHOLDERS' AND INSURER'S CONSENT................................................................. 28 Section 6.03 AMENDMENT WITH CONSENT OF INSURER ONLY..................... 29 ARTICLE VII FINANCIAL GUARANTY BOND INSURANCE............................................. 31 Section 7.01 PROVISIONS REGARDING INSURER................................................ 31 Section 7.02 PAYMENT PROCEDURE RELATING TO THE FINANCIAL GUARANTY INSURANCE POLICY..................................................... 31 Section 7.03 ADDITIONAL PROVISIONS RELATING TO THE FINANCIAL GUARANTY INSURANCE POLICY.............................. 32 ARTICLE VIII MISCELLANEOUS ........................................................................................... 35 Section8.01 DEFEASANCE......................................................................................... 35 ii Section 8.02 CONDITIONS TO EXECUTION OF BOND PURCHASE AGREEMENT.......................................................................................... 36 Section 8.03 PRELIMINARY OFFICIAL STATEMENT........................................... 36 Section 8.04 OFFICIAL STATEMENT........................................................................ 36 Section 8.05 APPOINTMENT OF REGISTRAR AND PAYING AGENT................. 37 Section 8.06 SECONDARY MARKET DISCLOSURE............................................... 37 Section 8.07 DESIGNATION OF BONDS AS QUALIFIED TAX-EXEMPT OBLIGATIONS........................................................................................ 37 Section 8.08 GENERAL AUTHORITY........................................................................ 37 Section 8.09 SEVERABILITY OF INVALID PROVISIONS...................................... 38 Section 8.10 REPEAL OF INCONSISTENT RESOLUTIONS ................................... 38 Section 8.11 EFFECTIVE DATE.................................................................................. 38 EXHIBIT A FORM OF PURCHASE AGREEMENT EXHIBIT B FORM OF PRELIMINARY OFFICIAL STATEMENT EXHIBIT C DESCRIPTION OF PROJECT iii