Loading...
HomeMy WebLinkAboutR-1989-133 RESOLUTION NO. 133-89 A RESOLUTION OF THE CITY OF DANIA, FLORIDA PROVIDING FOR THE ACQUISITION AND CONSTRUCTION OF ROADWAY, DRAINAGE AND INTERSECTION IMPROVEMENTS; PROVIDING FOR THE ISSUANCE OF $525,000 SPECIAL ASSESSMENT IMPROVEMENT BONDS, SERIES 1989 (N.E. 7TH AVENUE PROJECT) OF THE CITY TO FINANCE THE COST THEREOF; PROVIDING FOR THE RIGHTS, SECURITY, AND REMEDIES OF THE REGISTERED OWNERS OF SUCH BONDS; PROVIDING AN EFFECTIVE DATE. BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DANIA, FLORIDA: ARTICLE I STATUTORY AUTHORITY, DEFINITIONS, AND FINDINGS SECTION 1.01. AUTHORITY FOR THIS RESOLUTION. This Resolution is adopted pursuant to the provisions of Chapter 166, Part II, Florida Statutes, Chapter 170, Florida Statutes, the City Charter and other applicable provisions of law. SECTION 1.02. DEFINITIONS. Capitalized terms used in this Resolution shall have the following meanings, unless the context clearly requires otherwise. Words importing singular number shall include the plural number in each case and vice versa, and words of one gender shall be deemed to include the other gender, and words importing persons shall include firms and corporations. In this Resolution: "Act" shall mean Chapter 166, Part II, Florida Statutes, Chapter 170, Florida Statutes, the City Charter and other applicable provisions of law. "Authorized Investments" shall mean any of the following if and to the extent they are at the time legal for investment of City funds: (1) direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States of America, including obligations issued or held in book-entry form on the books or tu- of the Treasury of the United States; obligations of the Federal agencies set forth in clause (3) below to the extent unconditionaily guaranteed by the United States of America; and any certificates or other evidences of an ownership interest in obligations or in specified portions thereof (which may consist of specified portions of the interest thereon) of the character described in this clause (1) ; (2) any bonds or other obligations of any state of the United States of America or of any agency, instrumentality or local governmental unit of any such state (a) which are not callable prior to maturity or as to which irrevocable instructions have been given by the obligor to the trustee of such bonds or other obligations to give due notice of redemption and to call such i ) bonds for redemption on the date or dates specified in such instructions, and (b) which are insured and thereby rated by a nationally recognized bond rating agency within its highest rating category or which are secured as to principal, redemption premium, if any, and interest by a fund that (i) may be applied only to the payment of such principal of and interest and redemption premium, if any, on such bonds or other obligations on the maturity or interest payment date or dates thereof or the redemption date or dates specified pursuant to the irrevocable instructions referred to in subclause (a) of this clause (2) , as appropriate, and (ii) consists only of cash or bonds and obligations of the character described in clause (1) hereof in such amounts and of such maturities that the principal of and interest on the bonds and obligations deposited in such fund along with any cash on deposit in such fund are sufficient to pay principal of and interest and redemption premium, if any, on the bonds or other obligations described in this clause (2) on the maturity or interest payment date or dates thereof or on the redemption date or dates specified in the irrevocable instructions referred to in subelause (a) of this clause (2) , as appropriate; and any certificates or any other evidences of an ownership interest in obligations or specified portions thereof (which may consist of specified portions of the interest thereon) of the character described in this clause (2) ; (3 ) bonds, debentures, or other evidences of indebtedness issued or guaranteed by any agency or corporation which has been or may hereafter be created pursuant to an Act of Congress as an agency or instrumentality of the United States of America; (4) New Housing Authority Bonds or Project Notes issued by public agtncies of municipalities and fully secured as to the payment of both principal and interest by a pledge of annual contributions or a requisition or payment agreement with the United States of America; (5) direct and general obligations of any state of the United States of America to the payment of which the full faith and credit of said state is *,,.... pledged and which, at the time of investment, are rated by any nationally recognized bond rating agency by a rating which denotes a security with investment characteristics of a security presently rated by Moody's Investors Service, Inc. , or Standard S Poor's Corporation as "A" or better; (6) certificates of deposit, whether negotiable or nonnegotiable, issued by any bank, savings and loan association, trust company or national banking acsnriatinn that ;c a momhc. of �.vo... Insurance Corporation or the Federal Savings and Loan Insurance Corporation; provided, that such certificates of deposit are (a) fully insured by the Federal Deposit Insurance Corporation, the Federal Savings and Loan Insurance Corporation or (b) secured, to the extent not insured by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation, by such securities in clauses (1) through (5) above, having a market value (exclusive of accrued interest, other than accrued interest paid in connection with the purchase of such securities) at least equal to the principal amount of such certificates of deposit (or portion thereof not insured by the Federal Deposit -2- Insurance Corporation or the Federal Savings and Loan Insurance Corporation) which shall be lodged with the City, by such bank, trust company, national banking association or savings and loan association, and such bank, trust company, national banking association or savings and loan association shall furnish the City, with an undertaking satisfactory to the City that the aggregate market value of all such obligations securing such certificates of deposit will at all times be an amount which meets the requirements of this clause (6) and the City shall be entitled to rely on each such undertaking; further provided that the requirements of this clause (6) shall be deemed to be satisfied if the certificates of deposit are issued by a bank, savings and loan association, trust company, or national banking association at all times qualifying as a "qualified public depository" under the provisions of Chapter 280, Florida Statutes, and the deposits of moneys hereunder are collateralized in accordance with the provisions of Chapter 280, Florida Statutes; (7) obligations, providing for payment of principal and interest, of an insurance company which (a) is rated "A (Excellent)" or better, in "Class XV" by A.M. Best Company, Inc. or (b) whose claims paying ability is rated "AAA" by Standard & Poor's Corporation; and (8) units of participation in the Local Government Surplus Funds Trust Fund established pursuant to Chapter 218, Part IV, Florida Statutes, or any other similar common trust fund which is established pursuant to State law as a legal depository for public money and for which the State Board of Administration of the State acts as the custodian. "Bond Counsel" shall mean counsel experienced in matters relating to the validity of, and the tax exemption of interest on, obligations of states and their political subdivisions as selected by the City. "Bond Registrar" shall mean the person or corporation designated by the City to maintain the registration books required to be maintained hereunder and to serve as paying agent for purposes of making payments of principal of and interest on the Bonds to the Registered Owners. The initial Bond Registrar shall be Florida National Bank, Fort Lauderdale, Florida. "Bond Year" shall mean the one year period commencing on the date following each principal maturity date. "Bonds" shall mean the Special Assessment Improvement Bonds, Series 1989 (N.E. 7th Avenue Project) . "City" shall mean the City of Dania, Florida. "Code" shall mean the Internal Revenue Code of 1986, as amended, or any successor code thereto, together with the valid and applicable regulations thereunder, as the same may be in effect from time to time. "Commission" shall mean the City Commission, as the governing body of the City. -3- "Consulting Engineers" shall mean such independent, qualified, and recognized consulting engineers, having a favorable repute for skill and experience in the planning and construction of facilities similar to that of the Project, at the time retained by the City to perform the acts and carry out the duties as herein provided for such Consulting Engineers. "Debt Service Requirement" shall mean, for any Bond Year, as applied to the Bonds of any series, the sum of: (1) the amount required to pay the interest becoming due on the Bonds during such Bond Year; and (2) the aggregate amount required to pay the principal becoming due on Bonds for such Bond Year, whether by reason of the maturity of Bonds or by mandatory sinking fund redemption of the Bonds. In calculating the Debt Service Requirement for any period for any series of Bonds, the City shall deduct from the amounts calculated in subparagraphs (1) and (2) above: (a) any capitalized interest deposited into the Sinking Fund for such period from the proceeds of the sale of such Bonds or otherwise and (b) any investment earnings to be received on moneys on ALI deposit in the Sinking Fund and accounts therein, established with respect to such series of Bonds and required by the terms of this Resolution to be retained in such Sinking Fund. "Defeasarwe Securities" shall mean: (i) any bonds or other I obligations which as to principal and interest constitute direct obligations of, or are unconditionally guaranteed by, the United States of America, including obligations of any of the federal agencies set forth in clause (iii) below to the extent unconditionally guaranteed by the United States of America and any certificates or any other evidences of an ownership interest in obligations or in specified portions thereof (which may consist of specified portions of the in -..erest thereon) of the character described in this clause (i) ; (ii) any bonds or other obligations of any state of the United States of America or any agency, instrumentality or local governmental unit of any such state (a) which are rated in the highest rating category of either Standard 6 Poor's Corporation or Moody's Investors Service, or any successors thereto, (b) which are not callable prior to maturity or as to which irrevocable instructions have been given by the obligor to the trustee of such bonds or nhhar nhli phi t.. a.. .....e p. i�ii i.ti` .�cdci?ip ti.0 it d Ctlii SLLltl UU❑l15 fOI' .... redemption on the date or dates specified in such instructions, (c) which are secured as to principal and interest and redemption premium, if any, by a fund that will be held in trust to pay such principal of and interest and redemption premium, if any, on such bonds or other obligations on the maturity or interest payment date or dates thereof or the redemption date or dates specified pursuant to the irrevocable instructions referred to in subclause ( ii)(b) of this definition, as appropriate, and that consist only of cash or bonds or other obligations of the character described in clause (i) of this definition in such amounts and of such maturities that the principal of and _g. interest on the bonds and obligations deposited in such fund along with any / cash on deposit in such fund are sufficient (as verified by an independent certified public accountant) to pay principal of and interest and redemption premiums, if any, on the bonds or other obligations described in this clause (ii) on the maturity or interest payment date or dates thereof or on the redemption date or dates specified in the irrevocable instructions referred to in subclause (b) of this clause (ii), as appropriate, and any certificates or other evidences of an ownership interest in obligations or specified portions thereof (which may consist of specified portions of the interest thereon) of the character described in this clause (ii); or ( iii) bonds, debentures, or other evidences of indebtedness issued or guaranteed by any agency or corporation which has been or may hereafter be created pursuant to an Act of Congress as an agency or instrumentality of the United States of America. "District" shall mean the N.E. 7th Avenue Special Assessment District established pursuant to Resolution No. 94-89 adopted by the Commission on September 12, 1989. "Fiscal Year" shall mean the period commencing on October 1 of each year and ending on the succeeding September 30. AN "Independent Certified Public Accountants" shall mean such firm ` of certified public accountants, not in the regular employ of the City, as shall be retained by the City for the purpose of auditing the books and records relating to the Special Assessments and performing such other functions as are specified in this Resolution. "Interest Payment Date" shall mean May 1 and November 1 of each year, commencing May 1, 1990. "Maximum Debt Service Requirement" shall mean, as of any particular date of calculation, the Debt Service Requirement for the then current or any future Bond Year that is greater in dollar amount than the Drbt Service Requirement for any other current or future Bond Year with respect to the particular series of Bonds, or all Bonds, as the case may be. "Pledged Revenues" shall mean the Special Assessments and the moneys on deposit in the funds and accounts established hereunder. "Project" shall mean the cost of acquisition and construction of street and drainage improvements in the District, substantially in accordance with the report, plans, and specifications of the Consulting Engineers, heretofore filed or to be filed with the City. "Project Costs" shall mean, but shall not necessarily be limited to: the cost of the acquisition and construction of the street and drainage improvements and the construction and acquisition of additions, extensions, and improvements thereto; the acquisition of any lands or interest therein or any other properties deemed necessary or convenient therefor; engineering, accounting, and legal fees and expenses; expenses for plans, specifications -5- i and surveys; expenses for estimates of costs and of revenues; the fees of fiscal agents, financial advisors and consultants; administrative expenses; the capitalization of interest on the Bonds authorized hereby for a reasonable period of time after the date of issuance and delivery thereof; the establishment of reasonable reserves for the payment of debt service on the Bonds; discount upon the sale of the Bonds; the expenses and costs of issuance of the Bonds; such other expenses as may be necessary or incidental to the financing authorized by this Resolution, to the Project., and to the placing of the Project in operation; and reimbursement to the City for any sums expended for the foregoing purposes. "Record Date" shall mean the fifteenth day of the month prior to an Interest Payment Date for the Bonds, or such other date as may be specified by subsequent resolution of the Commission. "Registered Owner" or "Owner" shall mean any person who shall be the owner of any outstanding Bond or Bonds as shown on the registration books maintained by the Bond Registrar. "Reserve Account Requirement" shall mean an amount equal to the lesser of (i) the Maximum Debt Service Requirement for the Bonds or ( ii) the maximum amount allowed under the provisions of the Code to be funded from bond proceeds as a reasonably required reserve. "Special Assessments" shall mean all the proceeds derived from special assessments to be levied against the lands and real estate within the District to be specially benefited by the Project authorized by this Resolution, including interest and penalties on such special assessments and , any moneys received upon the foreclosure of the liens of such special assessments. "State" shall mean the State of Florida. SECTION 1.03. FINDINGS. It is hereby ascertained, determined, and ..wr declared as follows: (A) It is necessary and in the best interests of the health, safety, and welfare of the City and its residents that the City undertake the Project. The City is authorized pursuant to the provisions of the Act, particularly Chapter 170, Florida Statutes, to undertake the Project. : .cut adeq of rurrRnt1v available funds to (Bi Tl:a City _� :.._.._.._ �-._ , _ pay the Project Costs, and it is necessary and desirable and in the best interests of the City that it borrow the moneys necessary to accomplish the financing of the Project. The City is authorized pursuant to the provisions of the Act to borrow moneys necessary to pay the cost of the Project. (C) The City will receive the Pledged Revenues, and such Pledged Revenues are not pledged or encumbered to pay any other debts or obligations of the City. The City is authorized pursuant to the provisions of the Act to pledge the Pledged Revenues to secure the payment of debt issued to finance the Project Costs. (D) The Pledged Revenues are estimated to be sufficient to pay the Debt Service Requirement on Bonds and to make all other payments required to be made by the provisions of this Resolution. (E) The Bonds to be issued pursuant to this Resolution shall not be or be considered to be general obligations or indebtedness of the City within the meaning of any constitutional, statutory, charter or code provision or limitation, but shall be and are hereby declared to be special, limited obligations of the City, the principal of, premium, if any, and interest on which are payable solely from the Pledged Revenues in the manner provided herein. The principal of and interest on the Bonds to be issued pursuant to the provisions of this Resolution and all other payments provided for herein, will be paid solely from the Pledged Revenues, and it will never be necessary or authorized to levy taxes on any real property of or in the City to pay the principal of and interest on the Bonds to be issued pursuant to the provisions of this Resolution, or to make any of the sinking fund, reserve, or other payments provided for herein. Furthermore, neither the Bonds nor the _ principal thereof, premium, if any, or interest thereon, shall be or constitute a lien upon the Project or upon any other property of or in the City, but shall constitute a lien only upon the Pledged Revenues in the manner provided in this Resolution. SECTION 1.04. RESOLUTION CONSTITUTES A CONTRACT. In consideration of the acceptance of the Bonds authorized to be issued hereunder by those who shall be the Registered Owners of the same from time to time, this Resolution shall be deemed to be and shall constitute a contract between the City and such Registered Owners, and the covenants and agreements herein set frth and to be performed by the City shall be for the equal benefit, protection, security of the Registered Owners of any and all such Bonor ds, al l o ofhich shall be of equal rank and without preference, priority, any of the Bonds over any other thereof, except as expressly provided therein or herein. 7 J ARTICLE II AUTHORIZATION OF PROJECT; DESCRIPTION, DETAILS AND FORM OF BOND SECTION 2.01. AUTHORIZATION OF PROJECT. The Project is hereby specifically authorized. SECTION 2.02. AUTHORIZATION OF BONDS. Subject and pursuant to the provisions of this Resolution, obligations of the City, to be known as "Special Assessment Improvement Bonds, Series 1989 (N.E. 7th Avenue Project) , " are hereby authorized to be issued in an aggregate principal amount of Five Hundred Twenty-Five Thousand Dollars ($525,000) , for the purpose of financing Project Costs. SECTION 2.03. DESCRIPTION OF BONDS. The Bonds shall be numbered; shall be in denominations of $5,000 or integral multiples thereof; shall be dated; shall bear interest; shall be payable on such dates, shall mature on the first day of such month, in such years, and in such amounts, all as shown on Exhibit B hereto. The Bonds shall be issued in fully registered form; shall be payable with respect to principal at the principal corporate trust office of the Bond Registrar, as paying agent, or such other paying agent as shall be subsequently determined by the Commission; shall be payable in lawful money of ) the United States of America; and shall bear interest from their date, or from the most recent date to which interest has been paid, payable on each Interest Payment Date by check or draft mailed to the Registered Owner at his address as it appears upon the books of the Bond Registrar as of 5:00 P.M. Eastern Time on the Record Date. SECTION 2.04. EXECUTION OF BONDS. The Bonds shall be executed in the name of the City by the Mayor and City Manager of the City, and countersigned and attested by the City Clerk, and its corporate seal or facsimile thereof shall be affixed thereto or reproduced thereon. The signatures of the City Manager, the Mayor and the City Clerk may be manual or facsimile signatures imprinted or reproduced thereon. There shall be a Certificate of Authentication of the Bond Registrar uai the Bonds, and no Bond shaii be valid or obligatory for any purpose or be entitled to any security or benefit under the provisions of this Resolution unless such certificate shall have been duly executed on such Bond. The authorized signature for the Bond Registrar shall be either manual or in facsimile, provided, however, that at least one of the above signatures, including that of the authorized signature for the Bond Registrar, appearing on the Bonds shall be a manual signature. In case any one or more of the officers who shall have signed or sealed any of the Bonds shall cease to be such officer of the City before the -A- Bonds so signed and sealed shall have been actually sold and delivered, such Bonds may nevertheless be sold and delivered as herein provided and may be issued as if the person who signed or sealed such Bonds had not ceased to hold such office. Any Bond may be signed and sealed on behalf of the City by such person as at the actual time of the execution of such Bond shall hold the proper office in the City, although at the date of such Bonds such person may not have held such office or may not have been so authorized. SECTION 2.05. NEGOTIABILITY AND REGISTRATION. The Bonds shall be and have all the qualities and incidents of negotiable instruments under the Uniform Commercial Code-Investment Securities Laws of the State of Florida, and each successive Registered Owner, in accepting any of said Bonds shall be conclusively deemed to have agreed that the Bonds shall be and have all of the qualities and incidents of such negotiable instruments. There shall be a Bond Registrar, who may also be the paying agent for the Bonds, which shall be the City or a bank or trust company located within or without the State of Florida. The Bond Registrar shall be responsible for maintaining the books for the registration of the transfer and exchange of the Bonds. The City and the Bond Registrar may treat the Registered Owner of any Bond as the absolute owner thereof for all purposes, whether or not such Bond shall be overdue, and shall not be bound by any notice to the contrary. All Bonds presented for transfer, exchange, redemption or payment (if so required by the City or the Bond Registrar) shall be accompanied by a written instrument or instruments of transfer or authorization for exchange, in form and with guaranty of signature satisfactory to the City or the Bond Registrar, duly executed by the Registered Owner or by his duly authorized attorney. The Bond Registrar may charge the Registered Owner a sum sufficient to reimburse it for any expenses incurred in making any exchange or transfer after the first such exchange or transfer following the initial delivery of the Bonds. The Bond Registrar or the City may also require payment from the Registered Owner or his transferee, as the case may be, of a sum sufficient to cover any tax, fee or other governmental charge that may be imposed in relation thereto. Such charges and expenses shall be paid before any such new Bonds shall be delivered. The City and the Bond Registrar shall not be required (a) to issue, transfer or exchange any Bonds during a period beginning at the opening of business on the 15th day next preceding either any Interest Payment Date or any date of selection of Bonds or parts thereof to be redeemed and ending at the close of business on the Interest Payment Date or day on which the applicable notice of redemption is given, or (b) to transfer or exchange any Bonds selected, called or being called for redemption in whole or in part. New Bonds delivered upon any transfer or exchange shall be valid obligations of the City, evidencing the same debt as the Bonds surrendered, -9- shall be secured by this Resolution, and shall be entitled to all of the security and benefits hereof to the same extent as the Bonds surrendered. The City may elect to use a book-entry or immobilization system issuance and registration of the Bonds, and the details of any such system for shall be as fixed by subsequent resolution of the Commission adopted prior to the time of issuance of the Bonds. Whenever any Bond shall be delivered to the Bond Registrar for cancellation, upon payment of the principal amount thereof, or for replacement, transfer or exchange, such Bond shall be cancelled and destroyed by the Bond Registrar, and counterparts of a certificate of destruction evidencing such destruction sha11 be furnished to the City. SECTION 2.06. BONDS MUTILATED, DESTROYED, STOLEN OR LOST. In case any Bond shall become mutilated or be destroyed, stolen or lost, the Bond Registrar may in its discretion issue and deliver a new Bond, of like tenor as the Bond so mutilated, destroyed, stolen or lost, either in exchange and substitution for such mutilated Bond upon surrender and cancellation of such mutilated Bond or in lieu of and substitution for the Bond destroyed, stolen or lost, upon the Registered Owner's furnishing the Bond Registrar proof of his ownership thereof, furnishing satisfactory indemnity in favor of both the City and the Bond Registrar, complying with such other reasonable regulations and conditions as the Bond Registrar and City may prescribe, and paying such expenses as the City may incur. All Bonds so surrendered shall be cancelled. If any such Bond shall have been matured or be about to mature, instead of t issuing a substitute Bond, the Bond Registrar may pay the same, upon compliance with the foregoing conditions and requirements. Any such duplicate Bonds issued pursuant to this section shall constitute original, additional contractual obligations on the part of the be City, whether or not any lost, stolen or destroyed Bonds are found and shall benef a.... Bonds n issued hereutitled to nder as andual proportionate lien r on na d sources andts asecur nd t y sforst all other the Pledged Revenues. Payment from SECTION 2.07. TEMPORARY BONDS. Until Bonds in definitive form of any series are ready for delivery, the city may execute, and upon its request in writing, the Bond Registrar shall authenticate and deliver in lieu of any thereof, and subject to the same provisions or more printed, lithographed or typewrit ten te,n .,lulls and conditions, one substantially of the Bonds in temporary form, tenor of the Bonds hereinbefore described and with appropriate omissions, variations and insertions. :'he Bonds in temporary form will be in such principal amounts as the City shall determine. Until exchanged for Bonds in definitive form, such Bonds in temporary form shall be entitled to the lien and benefit of this Resolution. The City shall, without unreasonable delay, prepare, execute and deliver to the Bond Registrar and thereupon, upon the presentation and surrender of the Bonds in temporary form to the Bond Registrar, the Bond Registrar shall authenticate -10- L� and deliver, in exchange therefor, a Bond of the same maturity, in definitive form in the authorized denominations, and for the same aggregate principal amount, as the Bonds in temporary form surrendered. The expense of such exchange shall be paid by the City and there shall be made no charge therefor to any Registered Owner. SECTION 2.08. PROVISIONS FOR REDEMPTION. The Bonds maturing on or after May 1, 1998 may be redeemed prior to their respective maturities on or after May 1, 1997, at the option of the City from any moneys legally available therefor, other than moneys which are to be applied to the extraordinary mandatory redemption of Bonds, in whole at any time or in part on any interest payment date at the redemption prices (expressed as percentages of the principal amount of the Bonds or portions thereof to be redeemed) together with accrued interest to the redemption date, as follows: Redemption Period (dates inclusive) Redemption Price May 1, 1997 through April 30, 1998 102.0% May 1, 1998 through April 30, 1999 101. 5`b May 1, 1999 through April 30, 2000 101.0% May 1, 2000 through April 30, 2001 100.5% May 1, 2001 and thereafter 100.00 The Bonds maturing on May 1, 2010 are subject to mandatory redemption by lot through sinking fund payments on May 1 of each year, commencing May 1, 2000, at a redemption price equal to 100% of the principal amount thereof, plus accrued interest to the redemption date in the amounts set forth below. Year Amount 2000 $25,000 2001 25,000 2002 25,000 2003 30,000 2004 30,000 2005 35,000 2006 35,000 2007 40,000 2008 40,000 2009 45,000 2010* 50,000 * Final Maturity The Bonds are subject to extraordinary redemption on May 1 of each year, commencing May 1, 1991 from excess moneys deposited in the Redemption Account as a result of the collection of ( i) delinquent assessments and penalties; (ii) excess assessment collections; (iii) surplus moneys remaining in the Project Fund after the completion of the Project; (iv) prepayment of Special Assessments which are accelerated due to foreclosure of benefitted -11- property; (v) voluntary prepayment of Special Assessments; (vi) prepayment of Special Assessments which are accelerated due to the sale or subdivision of benefitted property; or (vii) earnings from investment of funds and accounts created hereunder that are deposited in the Redemption Account. The redemption price for any such extraordinary redemption shall be 1000 of the principal amount of Bonds to be redeemed, plus a premium equal to one percent (1%) of the principal amount to be redeemed for each year or portion thereof in advance of the stated maturity of the Bond to be redeemed, but in no event shall the premium exceed three percent (3'.) of the principal amount of the Bonds to be redeemed, plus accrued interest to the redemption date. If less than all of the Bonds are to be redeemed, the Bonds shall be redeemed in ascending order of maturity and by lot within each maturity. Not more than sixty (60) de.:s or less than thirty ( 30) days prior to the redemption date, notice of such redemption (i) shall be filed with the Bond Registrar, (ii) sent by registered or certified mail or overnight delivery service to all registered securities depositories and to national information services that disseminate redemption notices, and (iii) shall be mailed, postage preoaid, to all Registered Owners of Bonds to be redeemed at their addresses as they appear on the registration books hereinabove provided for. Interest shall cease to accrue on any Bonds duly called for prior redemption on the redemption date, if payment thereof has been duly provided. SECTION 2.09. FORM OF BONDS. The text of the Bonds shall be of substantially the form of Exhibit A hereto, with such omissions, insertions, and variations as may be necessary and desirable, and as may be authorized or permitted by this Resolution or by subsequent resolution adopted prior to the issuance thereof. -12- 1� J ARTICLE III BONDS NOT GENERAL OBLIGATION OF CITY; PLEDGE OF REVENUES AND APPLICATION THEREOF SECTION 3.01. BONDS NOT GENERAL OBLIGATION OR INDEBTEDNESS OF THE CITY. The Bonds shall not be or constitute a general obligation or indebtedness of the City within the meaning of any constitutional, statutory, charter or code provision or limitation, but shall be special, limited obligations of the City, the principal of, premium, if any, and .interest on which are payable solely from the Pledged Revenues as herein provided. No Registered Owner or Owners of any Bonds issued hereunder shall ever have the right to require or compel the exercise of the ad valorem taxing power of the City, or taxation in any form of any property of or in the City, to pay the Bonds or the interest thereon. SECTION 3.02. BONDS SECURED BY PLEDGED REVENUES. The payment of the principal of and interest on all of the Bonds issued hereunder shall be secured equally and ratably with the other Bonds by a first lien upon and pledge of the Pledged Revenues. The Special Assessments, in an amount sufficient both to pay the principal of and interest on the Bonds herein authorized and to make the payments into the Reserve Account and Sinking Fund and all other payments provided for in this Resolution, are hereby irrevocably pledged in the manner stated herein to the payment of the principal of and interest on the Bonds herein authorized as they become due; provided that said pledge and lien may be released and extinguished by defeasance as provided in i Section 6.04 hereof. SECTION 3.03. APPLICATION OF SPECIAL ASSESSMENTS. For as long as any of the principal of and interest on any of the Bonds shall be outstanding and unpaid or until (a) there shall have been set apart in the Sinking Fund, herein established, including the Reserve Account and Redemption Account, a sum sufficient to pay when due the entire principal of the Bonds remaining unpaid, together with the premium, if any, with respect thereto. and the interest accrued or to accrue thereon, or (b) provision for payment of the Bonds shall have been made in accordance with the terms of Section 6.04 of this Resolution and the Bonds shall have been defeased, the City covenants with the Registered Owners of any and all Bonds as follows: (A) CREATION CT FUNDS AND ACCOUNTS. There are hereby created and established the following funds and accounts: the Special Assessment Improvement Bonds, Series 1989 (N.E. 7th Avenue Project) Revenue Fund, hereinafter referred to as the "Revenue Fund;" the Special Assessment Improvement Bonds, Series 1989 (N.E. 7th Avenue Project) Sinking Fund, hereinafter called the "Sinking Fund, " together with the subaccounts therein to be known as the "Debt Service Account, " "Reserve Account" and the "Redemption Account;" and the Special Assessment Improvement Bonds, Series 1989 (N.E. 7th Avenue Project) Rebate Fund, hereinafter called the "Rebate Fund. " -13- J �I (B) MAINTENANCE OF FUNDS AND ACCOUNTS. The designation and establishment of the various funds and accounts in and by this Resolution shall not be construed to require the establishment of any completely independent, self-balancing funds or accounts, as such terms are commonly defined and used in governmental accounting, but rather is intended solely to constitute an earmarking of Pledged Revenues for certain purposes and to establish certain priorities for application of such Pledged Revenues as provided herein. Cash and investments required to be accounted for in each of the funds and accounts established by this Resolution may be deposited in a single bank account, provided that standard accounting records are maintained to reflect control or restricted allocation of the moneys therein for the various purposes of such funds and accounts. The foregoing provisions notwithstanding, the funds and accounts created and established pursuant to this Resolution shall constitute trust funds for the purposes provided herein and shall be maintained on the books of the City as separate and distinct from all other funds and accounts of the City, in the manner provided in this Resolution. All moneys in such funds and accounts shall be continuously secured in the same manner as deposits of City funds are required to be secured by the laws of the State. Separate accounts may be maintained for different series or `..q installments of Bonds and identified by the appropriate designation, and •� deposits into the accounts for each such series or installment of Bonds shall be on a parity with the deposits, if any, into the corresponding accounts for each other series of Bonds (or, in the case of a deficiency, shall be on a pro rata basis computed with regard to the aggregate principal amount of Bonds of each series then outstanding and unpaid) unless specified otherwise; further provided that moneys on deposit in the accounts established for a particular series of Bonds may be specified not to be available to be used for payments required to be made from the corresponding accounts for any other series of Bonds. ^�•« (C) APPLICATION OF SPECIAL ASSESSMENTS. All Special Assessments shall, immediately upon receipt thereof, be deposited by the City into the Revenue Fund. Any moneys at any time on deposit in the Revenue Fund shall be disposed of only in the following manner and order of priority. Moneys on teposit in the Revenue Fund shall be applied, on or before the loth day after receipt thereof, as follows: ,l) M^neos shell tin .ifhdrawn f. om, ♦ c o..... nuc Fund and .�, ..v....ry �..ui. .,.. ..«..v.u.... ••uw u.� auvv.ua. • w+u uuu deposited into the Debt Service Account in the Sinking Fund to the extent necessary to pay the Debt Service Requirement on the Bonds during the current Bond Year. (2) Moneys shall next be used to cure any deficiency for prior deposits into the Debt Service Account in the Sinking Fund to the extent that such deficiency had not been paid from the Reserve Account. -14- (3) Moneys shall be transferred from the Revenue Fund to the Rebate Fund to the extent necessary to comply with the Rebate Covenants (defined in Section 5.01(G) hereof) when such amounts are required to be transferred. The Rebate Fund and all earnings thereon shall be excluded from the pledge and lien of this Resolution. (4) Moneys shall next be used to maintain on deposit in the Reserve Account in the Sinking Fund an amount equal to the Reserve Account Requirement. Moneys in the Reserve Account shall be used only for the purpose of the payment of principal of or interest on the Bonds when the other moneys allocated to the Sinking Fund are insufficient therefor, and for no other purpose. (5) Any remaining moneys shall be deposited into the Redemption Account. The foregoing provisions notwithstanding, no further deposits shall be required to be made into the foregoing funds and accounts whenever there shall be on deposit in the Sinking Fund, including the Reserve Account and Redemption Account therein, an amount of money and Authorized Investments equal to all principal and interest due on the Bonds to the final maturity thereof. (D) INVESTMENT OF MONEYS IN FUNDS AND ACCOUNTS. All moneys on deposit in the Revenue Fund and the Sinking Fund may be invested and reinvested in Authorized Investments; provided, however, that such investments shall mature not later than the respective dates when such moneys will be required for the purposes of such funds and accounts. In the. case of the Reserve Account, the investments shall mature not later than five years from their date. All income from such investments shall upon receipt be deposited into the Revenue Fund and applied to the Sinking Fund as set forth in Section -.�._.. 3.03(C) hereof, except that income from investments of amounts in the Rebate Fund shall be retained therein. (E) OPERATION OF REDEMPTION ACCOUNT. Moneys held for the credit of the Redemption Account shall be applied to the retirement of Bonds in accordance with Section 2.09 hereof as follows: whenever sufficient money is on deposit in the Redemption Account to redeem $5,000 or more principal amount of Bonds, the City shall call for redemption from money in the Redemption Account such amount of Bonds as, with the redemption premium, if any, will exhaust the money then held in the Redemption Account as nearly as may be practicable. Prior to calling Bonds for redemption, the City shall withdraw from the Sinking Fund and deposit with the Bond Registrar the respective amounts required for paying the interest on the Bonds so called for redemption. (F) UNCLAIMED MONEYS. Any moneys deposited into the Sinking Fund for the payment of principal of, premium, if any, and interest on the -15- L Bonds and remaining unclaimed for a period of seven (7) years from the date on which such moneys were due to pay maturing principal of, premium, if any, or . interest on such Bonds may be withdrawn by the City and used for any lawful purpose, provided (1) that such withdrawal shall not give rise to any claim for additional interest due on such Bonds on account of payment thereof not having been duly provided for under the terms of this Resolution and (2) that such withdrawal shall not affect the right, to the extent existing under the provisions of this Resolution or of the laws of the State, of the Registered Owner of such Bonds to payment of the principal and interest thereon to the Interest Payment Date with respect to which such :honeys were originally deposited. I i -16- j ARTICLE IV APPLICATION OF BOND PROCEEDS SECTION 4.01. APPLICATION OF BOND PROCEEDS. All moneys received from the sale of any or all of the Bonds originally authorized and issued pursuant to this Resolution, shall be disbursed as follows: (A) Accrued interest received upon the delivery of the Bonds shall be deposited into the Sinking Fund and applied to the interest coming due on the Bonds on the first Interest Payment Date. (B) An amount equal to $20,375 shall be deposited into the Sinking Fund and applied to pay interest coming due on the Bonds during the construction period of the Project. (C) An amount equal to the Reserve Account Requirement ($52,500) shall be deposited into the Reserve Account. (D) The City shall next pay the costs of issuance of the Bonds. (E) The balance of such proceeds of the sale of the Bonds shall be deposited with a bank or trust company, in a special fund hereby created to be known as the "Series 1989 Bonds Project Fund, " (hereinafter referred to as the "Project Fund") under the management and control of the City, to be used to pay Project Costs. The moneys on deposit in the Project Fund shall be withdrawn, used and applied by the City solely for the payment of the Project Costs and purposes incidental thereto, as described and set forth in this Resolution. All expenditures or disbursements from the Project Fund shall be made only after such expenditures or disbursements shall have been approved in writing by the City. All funds on deposit in the Project Fund, which in the opinion of the City, are not immediately necessary for expenditure, as hereinabove provided, may be invested in Authorized Investments, maturing at such time or times as such moneys will be needed for the purposes of the Project Fund. All income derived from such investments shall be retained in the Project Fund and used Lu pay Life PiujecL CvV Lb. If, for any reason, the moneys on deposit in the Project Fund, or any part thereof, are not necessary for or are not applied to the payment of Project Costs, then the unapplied proceeds shall be deposited by the City into the Redemption Account. -17- J r r ARTICLE V COVENANTS OF THE CITY; REMEDIES SECTION 5.01. COVENANTS OF THE CITY. So long as any of the principal of, premium, if any, or interest on any of the Bonds shall be outstanding and unpaid, or until there shall have been set apart in the Sinking Fund and the Accounts therein, a sum sufficient to pay, when due, or to redeem prior to maturity, the entire principal of the Bonds remaining unpaid, together with interest accrued and to accrue thereon, the City covenants with the Registered Owners of any and all of the Bonds issued pursuant to this Resolution as follows: (A) PERFECTION OF SPECIAL ASSESSMENTS. The City represents that it has adopted all resolutions, held all hearings and performed all acts which are conditions precedent to and are necessary for the lawful levy of the Special Assessments against all lands and properties specially benefited by the construction of the Project and the collection thereof in an amount equal to or not less than the Project Costs to be paid from such Special Assessments. If any Special Assessment made with respect to this Project shall be either in whole or in part annulled, vacated or set aside by the judgment of any court, or if the City shall be satisfied that any such Special Assessment is so irregular or defective that it cannot be enforced or collected, or if the City shall have omitted to make any such Special Assessment when it might have done so, the City covenants that it will take all necessary steps to cause a new Special Assessment to be made for the whole or any part of any improvement or against any property benefited by any improvement of this Project, in the manner provided by law, and in any case any such second Special Assessment or an initial Special Assessment for one that shall have been omitted, shall be either in whole or in part annulled, vacated, or set aside, or be unenforceable or uncollectible by reason of defect or irregularity, the City shall obtain and make other Special Assessments until a valid assessment shall be made. (B) COLLECTION OF SPECIAL ASSESSMENTS. The Special Assessments shall be payable at the office of the City Clerk in twenty equal annual installments. The first installment of such special assessment, together with interest upon the whole special assessment, shall be due and payable in cash on the first day of the first month, thirty (3U) days atter the date of acceptance of the Project by resolution of the City Commission, or such other date as shall be determined by resolution of the City Commission, and a like payment, together with interest upon the unpaid balance of the special assessment, shall be due and payable on the anniversary of the first installment date in each and every year thereafter until paid in full; provided, however, that such special assessments may be paid in full without interest at any time within thirty (30) days- after the adoption of such resolution accepting the completed Project, and that unpaid balances of special assessments may be prepaid at any time by payment. in full of the principal thereof and interest accrued and to accrue thereon to the six (ti) month or annual anniversary date next occurring after the date of prepayment. -18- L_ � (C) USE OF AD VALOREM METHOD. At its option, the City may elect to use the method of collection of the Special Assessments provided for in Section 197.363, Florida Statutes. (D) ENFORCEMENT OF SPECIAL ASSESSMENTS. The City will diligently enforce the payment of all the Special Assessments and all of the installments thereof, interest thereon and penalties therefrom, in the manner prescribed by this resolution and the laws of the State pertaining thereto; provided that the City may select a trustee to act on its behalf for purposes of this paragraph. If the owner of any lot or parcel of land assessed shall be delinquent in the payment of any Special Assessment, installment thereof, interest due thereon or penalty thereon for a period of sixty (60) days, then the City shall declare the entire unpaid balance of said Special Assessment, interest and penalties to be in default and, shall cause such delinquent property to be foreclosed in the manner now or hereafter provided by law for the foreclosure of mortgages- on real estate, or as otherwise provided by law. If said foreclosure is not promptly filed and prosecuted, then any Registered Owner may file and prosecute said foreclosure action in the name of the City for the benefit of all outstanding and unpaid Bonds and interest thereon. All moneys realized thereby shall be deposited in the Redemption Account and applied in the manner hereinbefore provided. If any property shall be offered • � for sale for the non-payment of any Special Assessment, installment thereof, or interest or penalty thereon, and no person or persons shall purchase the same for an amount equal to the full amount due for the Special Assessment r (principal, interest, penalties and the costs and expenses of collection) , the ) said property shall then be purchased in the name of the City for an amount equal to the balance due on such Special Assessment, and the City shall receive title to said property for the benefit of the Registered Owners. The City covenants to use its best efforts to sell, lease or rent said property, for the highest return obtainable, and to deposit all of the net proceeds of any such sale, lease or rental into the Redemption Account. -z....,, (E) BOOKS AND RECORDS. The City will keep books acid records of the Special Assessments, which shall be separate and apart from all other books, records and accounts of the City, and in which complete and correct entries shall be made in accordance with standard principles of governmental accounting of all transactions relating to the Special Assessments; any Registered Owner of Bonds issued pursuant to this Resolution shall have the right at all reasonable times to inspect all records, accounts and data of the Citv relating thereon. The City shall, within 120 days after the close of each Fiscal Year, cause the books, records and accounts of the Special Assessments for such preceding Fiscal Year to be properly audited by the Independent Certified Public Accountants, and shall file with the City Manager such report which shall cover in reasonable detail the collection and application of the Special Assessments. The City shall mail upon written request, and make available generally, said report, or a reasonable summary thereof, to any Registered Owner of Bonds issued pursuant to this Resolution. -19- I I, (F) ISSUANCE OF OTHER OBLIGATIONS PAYABLE OUT OF PLEDGED REVENUES. The City will not issue any other obligations payable from the Pledged Revenues nor voluntarily create or cause to be created any debt, lien, pledge, assignment, encumbrance or any other charge having priority to or being on a parity with the lien of the Bonds issued pursuant to this Resolution and the interest thereon, upon any of the Pledged Revenues. Any other obligations issued by the City, in addition to the Bonds authorized by this Resolution, shall contain an express statement that such obligations are junior, inferior, and subordinate in all respects to the Bonds issued pursuant to this Resolution as to lien on and source and security for payment from the Pledged Revenues, and in all other respects. (G) TAX COMPLIANCE. The City will take all actions and do all things necessary or desirable in order to maintain the exclusion from gross income for federal income tax purposes of interest on the Bonds, and shall refrain from taking any actions that would cause interest on the Bonds to be included in gross income for federal income tax purposes. (H) ARBITRAGE REBATE COVENANTS. Moneys in the Rebate Fund shall be held by the City separate and apart from all other funds and accounts held by ... the City under this Resolution and from all other moneys of the City. Notwithstanding anything in this Resolution to the contrary, the City shall transfer from the Revenue Fund to the Rebate Fund as set forth in Section 3.03 hereof the amounts required to be transferred in order to comply with the Rebate Covenants attached as an exhibit to the Arbitrage Certificate to be delivered by the City on the date of delivery of the Bonds (the "Rebate Covenants") , when such amounts are so required to be transferred, but in no event later than 50 days after the end of each Bond Year. The City shall make or cause to be made payments from the Rebate Fund of amounts required to be deposited therein to the United States of America in the amounts and at the times required by the Rebate Covenants. The City covenants for the benefit of ,x the Owners that it will comply with the requirements of the Rebate Covenants. There shall be excluded from the pledge and lien of this Resolution the Rebate Fund, toqether with all moneys and securities from time to time held therein and all investment earnings derived therefrom. The City shall not be required to comply with the requirements of this Section 5.01(H) in the event that the City obtains an opinion of Bond Counsel that ( 1) such compliance is not required in order to maintain the Federal income tax exemption of interest on the Bonds and/or (2) compliance with some other requirement is necessary_ to maintain the Federal income tax exemption of interest on the Bonds. If after transferring the amount to the Rebate Fund as specified in the preceding paragraph the amount therein is greater than the amount required to make the applicable rebate payment to the United States of America as specified in the Rebate Covenants, the City may transfer an amount equal to such excess to the Redemption Account. ( 1) DESIGNATION UNDER SECTION 265(b) (3) OF THE; CODE. The City hereby designates the Bonds as qualified tax-exempt obligations under Section -20- 265(b) (3) of the Code, and shall make all necessary filings in order to effectuate such election. The City (including any subordinate entities or entities issuing tax-exempt obligations on behalf of the City within the meaning of Section 265(b)(3) of the Code) has not issued, and does not reasonably expect to issue, tax-exempt obligations within the calendar year 1989 which, together with the Bonds, will exceed $10,000,000. SECTION 5.02.. REMEDIES. Any Registered Owner of Bonds issued under the provisions of this Resolution, or any trustee acting for such Registered Owners in the manner hereinafter provided, may, either at law or in equity, by suit, action, mandamus, or other proceedings, in any court of competent jurisdiction, protect and enforce any and all rights, either under the laws of the State or granted and contained in this Resolution and may enforce and compel the performance of all duties required by this Resolution or by any applicable statutes to be performed either by the City or by any officer thereof. In the event that default shall be made in the payment of the interest on or the principal of any of the Bonds issued pursuant to this Resolution as the same become due, or in the making of the payments into the Debt Service Account or the Reserve Account or any other payments required to be made by this Resolution, or in the event that the City or any officer, agent, or employee thereof shall fail or refuse to comply with provisions of this Resolution, or shall default in any covenant made herein, and in the further event that any such default shall continue for a period of thirty (30) days after the giving of notice thereof to the City, the Registered Owners of not less than twenty-five percent (250) in aggregate principal amount of Bonds outstanding, or any trustee appointed to represent Registered Owners as hereinafter provided, shall be entitled as of right to the appointment of a receiver of the Pledged Revenues in an appropriate judicial proceeding in a court of competent jurisdiction, whether or not such Registered Owners or ti trustee is also seeking or shall have sought to enforce any other right or exercise any other remedy in connection with Bonds issued pursuant to this Resolution. The receiver so appointed shall forthwith, directly or by his agents and attorneys, take possession of the funds and accounts created hereunder, and shall hold, maintain, manage and control such funds and accounts and in the name of the City shall exercise all the rights and powers of the City with AG. Such rec..-"er respect to sucn funds and accounts as Lice CiLy itself ,Hight �•• shall collect and receive all Pledged Revenues and comply, under the jurisdiction of the court appointing such receiver, with all of the provisions of this Resolution. Whenever all principal that is due upon Bonds issued pursuant to this Resolution, together with interest thereon, and all payments required under any covenants of this Resolution for reserve, sinking funds, or other funds• and all principal upon any other obligations, together with interest thereon, having a charge, lien or encumbrance upon the Pledged Revenues, shall have been paid and made good, and all defaults under the provisions of this -21- Resolution shall have been cured and made good, possession of the funds and accounts established hereunder shall be surrendered to the City upon the entry of an order of the court to that effect. Upon any subsequent default, any Registered Owner of Bonds issued pursuant to this Resolution, or any trustee appointed for Registered Owners as hereinafter provided, shall have the right to secure the further appointment of a receiver upon any such subsequent default. Such receiver shall, in the performance of the powers hereinabove conferred upon him, be under the direction and supervision of the court making such appointment, shall at all times be subject to the orders and decrees of such court and may be removed thereby and a successor receiver appointed in the discretion of such court. Nothing herein contained shall limit or restrict the jurisdiction of such court to enter such other and further orders and decrees as such court may deem necessary or appropriate for the exercise by the receiver of any function not specifically set forth herein. Any receiver appointed as provided herein shall hold the funds and accounts established hereunder in the name of the City and the Registered Owners of Bonds issued pursuant to this Resolution. Such receiver shall have no power to sell, assign, mortgage, or otherwise dispose of any Pledged Revenues other than as provided herein, but the authority of such receiver shall be limited to the possession, and maintenance of the funds and accounts established hereunder for the sole purpose of the protection of both the City and said Registered Owners. The Registered Owners of Bonds in an aggregate principal amount of ) not less than twenty-five per centum (250) of Bonds issued under this Resolution then outstanding may, by a duly executed certificate in writing, appoint a trustee for Registered Owners of Bonds issued pursuant to this Resolution with authority to represent such Registered Owners in any legal proceedings for the enforcement and protection of the rights of such Registered Owners. Such certificate shall be executed by such Registered Owners or their duly authorized attorneys or representatives, and shall be - •• filed in the office of the Clerk of the Circuit Court, Clerk of the Commission and with the Chairman. -22- i ARTICLE VI MISCELLANEOUS PROVISIONS SECTION 6.01. NO RECOURSE. No recourse shall be had for the payment of the principal of, premium, if any, and interest on the Bonds, or for any claim based thereon or on this Resolution, against any present or former member or officer of the Commission or any person executing the Bonds. SECTION 6.02, SALE OF BONDS; APPROVAL OF OFFICIAL STATEMENT. William R. Hough 6 Co. is hereby appointed Underwriter for the Bonds (the "Underwriter") . The Commission has received a proposed purchase contract for the Bonds (the "Bond Purchase Agreement") dated November 21, 1989, with respect to the purchase of the Bonds by the Underwriter. The Commission hereby finds and determines that entering into of the Bond Purchase Agreement with the Underwriter is in the best interest of the City. The Commission hereby authorizes and approves the Bond Purchase Agreement and directs that it shall be executed by and on behalf of the City by the Mayor and the City Manager of the City, and attested by the City Clerk of the City with the official seal of the City impressed or imprinted thereon, in substantially the form attached hereto as Exhibit C, subject to such changes, insertions and omissions and such filling-in of blanks therein as may be approved by the officers of the City executing th same pursuant to this Section. The execution and delivery ` of such Bond Purchase Agreement for and on behalf of the City by such officers is conclusive evidence of the approval of such officers of any such changes, insertions, omissions or filling-in of blanks. Due to the present volatility of the market for tax-exempt obligations and the complexity of structuring a special assessment issue, the Commission hereby finds and determines that a negotiated sale of the Bonds to the Underwriter is in the best interest of the City. The Commission hereby awards the Bonds to the Underwriter in accordance with the provisions of the Bond Purchase Agreement for the purchase price set forth in the Bond Purchase 'e...a.�''. Agreement, and confirms its receipt of a disclosure statement from the Underwriter complying with Statutes, as amended. the provisions of Section 218.385, Florida The proper officers of the City are hereby authorized and directed to execute the Bonds when prepared and to deliver the same to the Underwriter upon payment of the purchase price therefor in accordance with rho a...,a Purrhn�_ A— The Commission approves and ratifies the distribution of the Official Statement in the form attached hereto as Exhibit D by the Underwriter in connection with the offering and sale of the Bonds, with such changes, insertions, omissions and such filling-in of blanks therein as may be approved and made in such Official Statement by the officers of the City executing the same pursuant to this Section. The Mayor, the City Manager and the City Clerk -23- of the City are hereby directed to execute the Official Statement for and on behalf of the City. The execution and delivery of such Official Statement for and on behalf of the City by such officers is conclusive evidence of the approval of such officers of any such changes, insertions, omissions or filling-in of blanks. SECTION 6.03. AUTHORIZATION OF OFFICERS. The Mayor, Vice Mayor, City Clerk, Assistant City Clerk and the City Manager of the City, and other officers, employees and agents of the City are hereby authorized and directed to execute such instruments, certificates and documents, as may be necessary and appropriate for carrying out the transactions contemplated by the issuance and delivery of the Bonds and to do all acts and take all actions required by the terms, covenants, provisions and agreements of this Resolution, the Bonds and the Bond Purchase Agreement. SECTION 6.04. MODIFICATION OR AMENDMENT. Except as hereinafter provided, no material modification or amendment of this Resolution or of any ordinance or resolution amendatory hereof or supplemental hereto, may be made without the consent in writing of the Registered Owners of fifty-one percent (51%) or more in principal amount of the Bonds then outstanding, provided, however, that no modification or amendment shall permit a change in the maturity of such Bonds, a reduction in the rate of interest thereon, or a reduction in the amount of the principal obligation represented thereby; nor shall any modification or amendment either affect the unconditional promise of the City to pay the principal of and interest on the Bonds, as they shall become due, from the Pledged Revenues, or reduce the percentage of Registered Owners of Bonds above required to consent to such material modifications or amendments, without the consent of the Registered Owners of all such Bonds; provided further, however, that no such modification or amendment shall allow or permit any acceleration of the payment of principal of or interest on the Bonds upon any default in the payment thereof whether or not the Registered Owners of the Bonds consent thereto. The City, from time to time and at any time and without the consent or concurrence of any Registered Owners of any Bonds, may adopt a resolution amendatory hereof or supplemental hereto, if the provisions of such supplemental resolution shall not adversely affect the rights of the Registered Owners of the Bonds the❑ outstanding, for any one or more of the following purposes: (1) to make any changes or corrections in this Resolution which the City shall have been advised by counsel are required for the purpose of curing or correcting any ambiguity or defect or inconsistent provision or omission or mistake or manifest error contained herein, or to insert in this Resolution such provisions clarifying matters or questions arising hereunder as are necessary or desirable; (2) to add additional covenants and agreements of the City for the purpose of further securing the payment of the Bonds; -24- (3) to surrender any right, power or privilege reserved to or conferred upon the City by the terms hereof; (4) to confirm by further assurance any lien, pledge or charge created or to be created by the provisions hereof; (5) to grant to or confer upon the Registered Owners any additional right, remedies, powers, authority or security that lawfully may be granted to or conferred upon them; (6) to assure compliance with the Code; or (7) to provide such changes which, in the opinion of the City, based upon such certificates and opinions of the Consulting Engineer, Independent Certified Public Accountant, Bond Counsel, financial advisors or other appropriate advisors as the City may deem necessary or appropriate, will not materially adversely affect the security of the Registered Owners, including, but not limited to, such changes as may be necessary in order to adjust the terms hereof so as to facilitate the issuance of other types of obligations, including, but not limited to, bonds, notes, certificates, warrants or other evidences of indebtedness, that are subject and subordinate to the rights of the Registered Owners of the Bonds. SECTION 6.05. DEFEASANCE. Notwithstanding the foregoing provisions of this Resolution, if, at any time, the City shall have paid, or shall have ) made provision for payment of, the principal, interest and redemption premiums, if any, with respect to any Bonds, then, and in that event, the pledge of and lien on the Pledged Revenues, and the covenants contained in this Resolution, in favor of the Registered Owners of such Bonds shall be no longer in effect, except that the provisions of Section 5.01(H) hereof shall continue in effect until all payments of rebate to the United States of � . America have been made in accordance with the Rebate Covenants. For purposes of the preceding sentence, deposit of Defeasance Securities, which shall not be subject to redemption prior to their maturity other than at the option of the holder thereof, in irrevocable trust with a banking institution or trust company, for the sole benefit of the Registered Owners of such Bonds, in respect to which such Defeasance Securities, the principal and interest received will be sufficient to make timely payment of the principal, interest, and redemption premiums, if any, on such outstanding Bonds designated to be defeased, shall be considered "provision for paymeni." Go t;u 4 rg ,•c.c.•-• shal••..-- be deemed to require the City to call any of the outstanding Bonds for redemption prior to maturity pursuant to any applicable optional redemption provisions, or to impair the discretion of the City in determining whether to exercise any such option for early redemption. SECTION 6.06. SEVERABILITY OF INVALID PROVISIONS. If any one or more of the covenants, agreements or provisions of this Resolution should be held to be contrary to any express provision of law or to be contrary to the policy of express law, though not expressly pronibited, or to be against public policy, or should for any reason whatsoever be held invalid, then such -25- I . covenants, agreements, or provisions shall be null and void and shall be deemed separate from the remaining covenants, agreements, or provisions of, and in no way affect the validity of, all the other provisions of this Resolution or of the Bonds. SECTION 6.07. REPEALING CLAUSE. All ordinances and resolutions of the City, or parts thereof, in conflict with the provisions of this Resolution are to the extent of such conflict hereby superseded and repealed. SECTION 6.08. EFFECTIVE DATE. This Resolution shall take effect in the manner provided by law. PASSED AND ADOPTED this 12th day of December, 1989. /��(SEAL) MAYOR - COMMISSION ATTEST: QvsY CITY CLERK - AUDITOR APPROVED AS TO FORM AND CORRECTNESS: By: 4- f.• FRANK ADLER, City Attorney DAN IA/ Re501oe ion/M-05fl5S/11- II -fl9 -26- I 1 J EXHIBIT A (Face of Bond] No. R $ UNITED STATES OF AMERICA STATE OF FLORIDA CITY OF DANIA SPECIAL ASSESSMENT IMPROVEMENT BOND, SERIES 1989 (N.E. 7TH AVENUE PROJECT) DATED DATE MATURITY DATE INTEREST RATE CUSIP December 1, 1989 REGISTERED OWNER: PRINCIPAL AMOUNT: KNOW ALL MEN BY THESE PRESENTS, that the City of Dania, Florida (the "City"), for value received, hereby promises to pay to the Registered Owner y� designated above, or registered assigns, solely from the special funds hereinafter mentioned, on the Maturity Date specified above, or redemption date if earlier redeemed, the principal amount shown above, upon presentation and surrender hereof at the corporate trust office of Florida National Bank, r Fort Lauderdale, Florida, as Bond Registrar and Paying Agent, and to pay solely from such funds, interest thereon from the date of this Bond or from the most recent Interest Payment Date to which interest has been paid, whichever is applicable, at the rate per annum set forth above until the Maturity Date or earlier redemption date, such interest to the maturity hereof being payable on May 1, 1990, and thereafter on November 1 and May 1 of each year by check or draft mailed to the Registered Owner at his address as it appears, at 5:00 P.M. Eastern Time on the fifteenth day of the month preceding the applicable interest payment date, on the registration books of the City kept by the Bond Registrar. The principal of, premium, if any, and interest on this Bond are payable in lawful money of the United States of America. This Bond is payable solely from and secured by a first lien upon and pledge of the Special Assessments (hereinafter, the "Special Assessments") accruing to the City, and the moneys on deposit in the funds and accounts created pursuant to, all as defined and provided in, Resolution No. of the City duly adopted on December 12, 1989 (the "Resolution") (collectively, the "Pledged Revenues") . This Bond does not constitute a general obligation or indebtedness of the City within the meaning of any constitutional, statutory or charter provision or limitation, and it is expressly agreed by the Registered Owner of this Bond that such Registered Owner shall never have the right to require or compel the exercise of the ad valorem taxing power of the City, or the taxation of any property of or in the City, for the payment of the principal of and interest on this Bond or for the making of any sinking fund, reserve or other payments provided for in the Resolution. A-1 It is further agreed between the City and the Registered Owner of this Bond, that this Bond and the obligation evidenced hereby shall not constitute a lien upon the Project or any part thereof, or on any other property of or in the City, but shall constitute a lien only on the Pledged Revenues, in the manner provided in the Resolution. This Bond is one of an authorized issue of Bonds, originally issued in the aggregate principal amount of $525,000, of like date, tenor and effect, except as to number, interest rate, and date of maturity, issued to finance the cost of street and drainage improvements in the City, under the authority of and in full compliance with the Constitution and Statutes of the State of Florida, including particularly Chapter 166, Part II, Florida Statutes, Chapter 170, Florida Statutes, the City Charter of the City and other applicable provisions of law, and the Resolution, and is subject to all the terms and conditions of said Resolution. Capitalized terms used herein shall have the meaning specified in the Resolution. The City has entered into certain covenants with the Registered Owners of the Bonds of this issue for the terms of which reference is made to said Resolution. The City has reserved the right to defease the lien of the Bonds of this issue upon the Pledged Revenues upon making provision for payment of the Bonds as provided in the Resolution. Reference is hereby made to the further provisions of this Bond set forth on the reverse side hereof and such further provisions shall for all purposes have the same effect as if .set forth on the front side hereof. 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 Laws and Constitution of the State of Florida applicable thereto, and that the issuance of this Bond, and of the issue of Bonds of which this Bond is one, does not violate any `a....J'. constitutional or statutory limitation. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon shall have been executed by the Bond Registrar. A-2 IN WITNESS WHEREOF, the City of Dania, Florida has issued this Bond and has caused the same to be executed by its Mayor and City Manager, either manually or with their facsimile signatures, and the corporate seal of said City or a facsimile thereof to be affixed hereto or imprinted or reproduced hereon and attested by the manual or facsimile signature of the City Clerk, all as of the Dated Date specified above. CITY OF DANIA, FLORIDA (SEAL) -- Mayor ATTEST: By: By City Clerk City Manager A-] J BOND REGISTRAR'S CERTIFICATE OF AUTHENTICATION This Bond is one of the Bonds of the issue described in the within-mentioned Resolution. FLORIDA NATIONAL BANK, As Bond Registrar By: —--- Authorized Signature Date of Authentication: A-4 J J [Back of Bond] The Bonds maturing on or after May 1, 1998 may be redeemed prior to their respective maturities on or after May 1, 1997, at the option of the City from any moneys legally available therefor, other than moneys which are to be applied to the extraordinary mandatory redemption of Bonds, in whole at any time or in part on any interest payment date at the redemption prices (expressed as percentages of the principal amount of the Bonds or portions thereof to be redeemed) together with accrued interest to the redemption date, as follows: Redemption Period (dates inclusive) Redemption Price May 1, 1997 through April 30, 1998 102.00. May 1, 1998 through April 30, 1999 101. 5% May 1, 1999 through April 30, 2000 101.0% May 1, 2000 through April 30, 2001 100.5% May 1, 2001 and thereafter 100.00. The Bonds maturing on May 1, 2010 are subject to mandatory redemption by lot through sinking fund payments on May 1 of each year, commencing May 1, "± 2000, at a redemption price equal to 100° of the principal amount thereof, plus accrued interest to the redemption date in the amounts set forth below. Year Amount 2000 $25,000 2001 25,000 2002 25,000 2003 30,000 2004 30,000 2005 35,000 2006 35,000 2007 40,000 2008 40,000 2009 45,000 2010* 50,000 iiriai iid tuf ity The Bonds are subject to extraordinary mandatory redemption on May 1 of each year, commencing May 1, 1991 from excess moneys deposited in the Redemption Account as a result of the collection of (i) delinquent assessments and penalties; ( ii) excess assessment collections; (iii) surplus moneys remaining in the Project Fund after the completion of the Project; ( iv) prepayment of Special Assessments which are accelerated due to foreclosure of benefitted property; (v) voluntary prepayment of Special Assessments; (vi) prepayment of Special Assessments which are accelerated due to the sale or subdivision of benefitted property; or (vii) earnings from the investment of A-5 funds and accounts created under the Resolution that are heposited in nthe Redemption Account. The redemption price for any l00% of the principal amount of Bonds to be redeemed, plus redemption shall be a premium equal to one percent (la) of the principal amount. to be redeemed for each year or portion thereof in advance of the stated maturity of the Bond to be redeemed, but in no event shall the premium exceed three percent (3%) of amount to be redeemed, plus accrued interest to the redemption the principal date. ifi less than n ascending all of ofematurity and 3onds are tbyblotewithin each maturity.hall be red This Bond is and has all the qualities and incidents of a negotiable instrument under the Uniform Commercial Code--Investment Securities Laws of the State of Florida, and the Registered Owner and each successive Registered owner of this Bond, shall be conclusively deemed by his acceptance hereof to have agreed that this Bond shall be and have all the qualities and incidents of negotiable instruments under the laws of the State of Florida. A-6 J (Form of Opinion of Bond Counsel] The following abbreviations, when used in the inscription on the face of the within bond, shall be construed as though they were written out in full according to applicable laws or regulations: TEN COM - as tenants in common UNIF GIF MIN ACT - TEN ENT - as tenants by the entireties (Cust. ) JT TEN - as joint tenants with right Custodian for _ of survivorship and not as (Minor) tenants in common under Uniform Gifts to Minors Act of ------- (State) ------- Addition-1 abbreviations may also be used though not in list above. ASSIGNMENT FOR VALUE RECEIVED, the undersigned sells, assigns and transfers to PLEASE INSERT NAME, ADDRESS AND SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE the within bond and does hereby irrevocably constitute and appoint as his agent to transfer the bond on the books kept for registration thereof, with full power of substitution in the premises. Dated: M NOTICE: The signature to this Signature guaranteed: assignment must correspond with the name of the Registered Owner as it appears ___ upon the face of the within irm (Bank, Trust Company or F ) bond in every particular, - without alteration or enlarge- ment or any change whatever. (Authorized Officer) DANIA/ EXA/M-O ] IAS/11 - I /-119 A-7 EXHIBIT B DATE, PRINCIPAL AMOUNT, MATURITIES AND INTEREST RATES Dated Date: December 1, 1989 Principal Amount: $525,000 Maturity Date: May 1 Maturity Years, Amounts and Interest Rates: Year Amount Interest Rate Price or Yield 1991 $ 10,000 6.60 100% 1992 15,000 6.80 100% 1993 15,000 6.90 100e 1994 15,000 7.Oo 100% 1995 15,000 7.1. 100% 1996 15,000 7.20 100% 1997 20,000 7.30. 100% 1998 20,000 7.4% 100% 1999 20,000 7.50 100`6 2010 380,000 8.0% 100% DANIA/ Exa/M-05425/12-II -8'1 B-1 J F-1 RUDEN, BAL• ?'T, MCCLOSKY, SMITH SCHUSTEH & Ru.� .LL, P.A. ATTORNEYS AT LAW j -1 701 BPICHELL AVENUE 1 CE. w CA.'$C C` SUITE 1900 ? E �- n 1 /Err PE. n rPPv'S "I m.w'LN n SC....TI F ILPvn' PDPmS MIAMI FLORIBA 33131 BR�PN r LEPP•^uPN g rv�pP�wD jCL._DE B PRPirrG'ON eiC r.nuC`E rR EN] epwwpwp0 J u -pq N E Sv,Enmpv ( SCOT' a ALS- (305) 769 2700 P vGE-nGgv P_ L. n S ELEL SEC.._ cERS SCO.-.. a OL u ± SLPviS ..OPNi B.nCa rv.50- Pu! ERE r Sup LLw000 PLACE a..LR vIN ' Ps OEN--E TELECOPIER (305)TB9.2793 STEVENL r.C�EL E w 1 LLOT B B.RNf-- s-E Pr.EN] cCpNN LLENv v sr^i. ..ESP LEGRCE TELEX 441'372 p.IILCI m CLOs,• .B smn. -Err REv I BCC' w N 5 uc...:L.' -p A . ..OnPi..PNO BCLOrr .'.LE N^.P .'iEREE Eu B • SPu-'E-5 $u'i' 1 am..wD E an E^"' w u sa L maw m[ m - 9" E sp.EISTEI BLP •. P wCEEI.B LO-^LPN nOODwOw..up' pj .ann SOUS LIIE'N vi0 n GLENN E OCLCS'E.N PLIES a BJOSSEP R..CE P OGOO•'^M1 S.U..EL x rp'E]'.90. 980) RCBfwi m L ENBERLEP EC'xN S.PC^Eq D'-.OURS R BOLr iCCP,..NC $AMLE PCuOILEI •v'w•w P•L•N•'• :OO]BO00 'r S.mCN R,/DEv'.y.5 i36i1 '.w C v N p LL ]La'.^ V . .SSBA' u, E' oLC" RSO.. x ENCE C C.L-Pw'.- mPNC• x 3.Es.., BPPv r O CONNGq A, .-Ow.RO. CPU,:^ .I-Om.S r LLs:.r50' IA. L P 'I m I—ELB CnCSP. vP / OLwPOv B-E—E5 CE'_L CAN..F_LLER I. r[_D9 [L:.O.i.. 5-EnnEN R vERB• Pn pPE.B C-.ODOROw L-ER c u ^C..o.. o ..E p I .. we»occoorsn. es-.�^�'s s-E_nor.e REN x R C Ew BE ROSE`.BL.' ]Pv D P /.E R^.- •"B . ". ' 050v ;SEORG[ xE.NS'E�v N ^. O B.vrvON TILE' w uiCu.a 5 RO55 C 55 E--s�'P .E .Eq PE VC[ RJSSE'-L r RC•O J/CPR�C MP E..O•-•.EOv U mi$PLL-Pa-E"FOC BEV N[•i rPLn _CwCUC ... S E'M P _CSEou BCVC E 5 SPi:ERr� OCN<L]C xOR^5 9 ,I." awOL�ew ��p.p50 LPCn C r vnELUPN -EI.w'P-E' w . n voEP C_EL-C . NE'�5 ^L[nE ..RON. rC09PV I. .PL n.•PSSEE OrfiCE :.'.:�'.C•OrriCE_ w0.-ROE wAR •OwEa ' SJ E 0= c•.Jqi LP..p EP]PEE CrriCE BOCP Pp'ZON Orr CE 5 xC5''.5-iNL'ON EPEE- �ROC^Ew P 5- CS r,CplD. 3235 O NOw'u uCNPOC S.REE' m u' BEAC. Gcc'CE -v- •, ..RISE'. r-pw'C]2]O rLOOw O CPS'BgObp RD E0..-[raPp 955'Cxv CE`.-Ew u0.o 30A'.62' 95e9 •.;9p4 6e' 902' P E.L^ n POI.Crr CE BG•.30C DOCp Pe'CN r_ n,-..]JaBO O . 'CO ` wOPD u.,. _ ...DERDPLE r-OPOP]]JC2 39 ie00 u�.m.BC.C. r-CA D.33 39 'C '/ _ 1305',6w3 �-0O 1305,'64 5660 xa,:EP S D PE] -uBCw December 12 , 1989 789-2783 BY MESSENGER Wanda Mullikin Frank C. Adler, Esq. City Clerk City Attorney City of Dania City of Dania 100 West Dania Beach Boulevard 100 West Dania Beach Boulevard Dania, FL 33004 Dania, FL 33004 Re: $525, 000 City of Dania, Florida Special Assessment 'ect ) Improvement Bonds, Series 1989 (N.E. 7th Avenue Pro Dear Frank and Wanda: thorizing 'a .. Enclosed is the final Bond Rwhichtmay be ion presented the issuance of the above-captioned bonds, to the City Commission this evening for approval . I look forward to seeing you this evening at the City Commission meeting. Very truly yours , RUDEN, BARNETT, McCLOSKY , SMITH, SCHUSTER & RUSSELI , P.A. j Glenn A. Gerea GAG :sy/l Enclosure