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HomeMy WebLinkAbout05-222 RESOLUTION NO. 05-222 A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF ST. LUCIE COUNTY, FLORIDA, PROVIDING FOR THE ISSUANCE FROM TIME TO TIME OF STATE REVENUE SHARING IMPROVEMENT AND/OR REFUNDING BONDS; PROVIDING FOR THE COVENANTS OF THE COUNTY WITH THE HOLDERS OF THE BONDS; PROVIDING FOR THE RIGHTS, SECUR1TY, AND REMEDIES OF THE REGISTERED OWNERS OF SUCH BONDS; PROVIDING FOR THE ISSUANCE OF STATE REVENUE SHARING 1MPROVEMENT REVENUE BONDS, SERIES 2005; ACCEPTING THE COMMITMENT OF THE BOND INSURER FOR AND MAING CERTAIN COVENANTS IN CONNECTION WITH A MUNICIPAL BOND INSURANCE POLICY AND A DEBT SERVICE RESERVE FUND SURETY BOND; DELEGATING AUTHOR1TY TO AWARD THE SERIES 2005 BONDS AND TO EXECUTE A BOND PURCHASE CONTRACT; PROVIDING FOR THE APPROVAL OF FINAL TERMS OF THE SERIES 2005 BONDS; APPOINTING A BOND REG1STRAR AND PAYING AGENT; APPROVING THE FORMS OF VARIOUS DOCUMENTS; AUTHOR1ZING THE EXECUTION OF VARIOUS DOCUMENTS AND THE TAK1NG OF ALL NECESSARY ACTION IN CONNECTION WITH THE ISSUANCE AND DELIVERY OF THE SERIES 2005 BONDS; AND PROVIDING AN EFFECTIVE DATE. BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF ST. LUCIE COUNTY, FLORIDA, as follows: ARTICLE I STATUTORY AUTHOR1TY, DEFINITIONS, AND FINDINGS Section 1.01. Authority For This Resolution. This resolution is adopted pursuant to the provisions of the Act. 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 genders. In this resolution: U Accounting Principles" means generally accepted accounting principles applicable to governmental entities. I 1}5000/03/00008601.DOCv5} "Act" shall mean the Constitution of the State, Chapters 125, Part I, and 218, Part II, Florida Statutes, as amended, Ordinance No. 87-77 of the County, as amended by Ordinance No. 95-06, and other applicable provisions of law. "Additional Parity Bonds" shall mean any obligations hereafter issued pursuant to the terms and conditions of Section S.Ol(D) of this resolution and payable from the Pledged Revenues on a parity with the 2005 Bonds, originally issued hereunder. "Amortization Installment" shall mean, with respect to each maturity of Term Bonds of any Series of Bonds, the principal amounts (or Compounded Amounts) of such Term Bonds to be retired in consecutive years by mandatory redemption from the applicable Bond Amortization Account within the Debt Service Fund or, in the year in which such Term Bonds are stated to mature, through payment at maturity, provided that (i) each such installment shall be deemed to be due on the Interest Payment Date or Principal Maturity Date of each applicable year as set forth in the Purchase Contract or by resolution of the Board and (ii) the aggregate of such installments for each maturity shall equal the aggregate principal amount (or, if applicable, the Compounded Amounts at maturity) of Term Bonds of such maturity delivered on original issuance. "Authorized Investments" shall mean any obligations, deposit certificates, or other evidences of indebtedness legal for investment pursuant to applicable law, to the extent not inconsistent with the terms of any Credit Facility or with the formal investment policy of the County. With respect to the 2005 Bonds, Authorized Investments shall not include any investments not included on Exhibit H, Part II hereto. "Board" means the Board of County Commissioners of the County, as governing body of the County. "Bond Counsel" shall mean such firm of attorneys which is nationally recognized as being experienced in matters relating to the validity of, and the state and federal income tax treatment of interest on, obligations of states and their political subdivisions and whose opinions are generally accepted by purchasers of municipal bonds, as selected by the County. "Bond Purchase Contract" means an agreement between the County and an Underwriter for the sale and purchase of a Series of Bonds in a form approved by the County Administrator with the advice of the County Attorney and Bond Counsel, such approval to be presumed by the execution and delivery thereof. "Bond Registrar" shall mean the Person or corporation designated by the County 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. 2 2 {5000/03/O000860 I.DOCv51 "Bond Registrar and Paying Agent Agreement" means an agreement between the County and the Bond Registrar relating to the maintenance of books and records of ownership of Bonds and providing for the authentication of, and payment of the principal of, premium if any, and interest on, the Bonds, and other matters, with such modifications thereto as shall be approved by the Chairman upon the recommendation of the County Administrator with the advice of the County Attorney and Bond Counsel, such approval to be presumed by the execution and delivery thereof. "Bond Resolution" means this resolution, as amended and supplemented from time to time. "Bond Year" means each twelve-month period beginning the day after a Principal Maturity Date or any other annual period designated by the County. "Bonds" shall mean the 2005 Bonds and any Additional Parity Bonds issued pursuant to the terms and conditions of this resolution. "Book-Entry Form" or "Book-Entry System" means the form or system, as applicable, under which (i) Bonds are issued to a securities depository or to its nominee, as Registered Owner, (ii) Bonds are held by and "immobilized" in the custody of such securities depository, and (iii) records are maintained by the securities depository and/or other persons to identify and record the transfer of beneficial interests in the Bonds, more particularly described in Section 2.11 hereof. "Business Day" means any day on which (i) banks in the jurisdiction of the County or in any of the cities in which the designated office of the Paying Agent or the principal office of any Credit Facility Issuer are located, are not required or authorized by law to remain closed, and (ii) the Paying Agent and any Credit Facility Issuer and the New York Stock Exchange, Inc. are open for business. "Cede" means Cede & Co., as nominee for DTC. "Chairman" means the Chairman or Vice Chairman of the Board. "County" means St. Lucie County, Florida. "County Administrator" means the County Administrator of the County, as the chief executive officer of the County. "Clerk" means the Clerk of the Circuit Court, ex officio Clerk of the Board. "Code" means the Internal Revenue Code of 1986, as amended, together with the valid and applicable regulations and proposed and temporary regulations thereunder, and, if 3 3 {5000103/O000860 I.DOCv5} applicable, under the Internal Revenue Code of 1954, as amended, as the same may be in effect or amended, and any successor provisions thereto, from time to time. "Commitments" means collectively the commitments by a Credit Facility Issuer to issue a Credit Facility and/or a Reserve Account Credit Facility. "Compounded Amounts" means, with respect to any Compounding Interest Bonds, the amounts representing principal and interest on such Compounding Interest Bonds from time to time at and prior to the maturity thereof in accordance with a schedule of such amounts delivered at the original issuance of such Series of Bonds. "Compounding Interest Bonds" means Bonds, the interest on which (i) shall be compounded periodically, (ii) shall be payable only at maturity or redemption prior to maturity, and (iii) shall be determined by reference to the Compounded Amounts. "Continuing Disclosure Certificate" means a certificate related to any Series of Bonds to be executed by the proper officer of the County at or prior to the time the County delivers the Series of Bonds to the Underwriter, as it may be amended from time to time in accordance with the terms thereof, whereby the County undertakes to assist the Underwriter in complying with the continuing disclosure requirements of the Continuing Disclosure Rule. "Continuing Disclosure Rule" means the continuing disclosure requirements of Rule 15c2-12 of the United States Securities and Exchange Commission, as amended. "Credit Facility" means, with respect to the 2005 Bonds, the Policy, and as to other Bonds, each policy of municipal bond insurance, an irrevocable letter of credit, surety bond or other insurance or financial product which guarantees timely payment of all or any portion of the principal of, premium, if any, and interest on all or any portion of the Bonds. "Credit Facility Issuer" means, with respect to the 2005 Bonds, the 2005 Bond Insurer, and as to other Bonds, each insurance company, bank, or other organization which has provided a Credit Facility or Reserve Account Credit Facility in connection with the issuance of any Series of Bonds or any particular Bonds within a Series. "Current Interest Paying Bonds" means Bonds, the interest on which shall be payable on a periodic basis. "DTC" means The Depository Trust Company, New York, New York, a securities depository . "Debt Service" means, for any Series, the principal and interest on such Series. "Debt Service Requirement" means, for any Bond Year, as applied to the Bonds of any Series or all Bonds, as the case may be, the sum of: 4 4 {5000/03/0000860 I. DOCv5} (1) the amount required to pay the interest becoming due on the Current Interest Paying Bonds during such Bond Year; (2) the aggregate amount required to pay the principal becoming due on Current Interest Paying Bonds for such Bond Year; provided that, for purposes of this definition, the stated maturity date of any Current Interest Paying Term Bonds shall be disregarded and the Amortization Installments applicable to such Current Interest Paying Term Bonds in such Bond Year shall be deemed to mature in such Bond Year; and (3) the aggregate amount required to pay the Compounded Amounts due on any Compounding Interest Bonds maturing in such Bond Year; provided that, for purposes of this definition, the stated maturity date of any Compounding Interest Term Bonds shall be disregarded and the Amortization Installments applicable to such Compounding Interest Term Bonds in such Bond Year shall be deemed to mature in such Bond Year. In calculating the Debt Service Requirement for any period for any Series of Bonds or any Subordinated Debt, the County shall deduct from the amounts calculated in Subparagraphs (1) through (3) above: (a) any capitalized interest deposited into the applicable accounts of the Debt Service Fund for such period from the proceeds of the sale of such Bonds or otherwise and, while any Bonds are supported by a Credit Facility, held by a bond trustee or paying agent having combined capital, surplus and undivided profits of at least $50,000,000 (or approved by the Credit Facility Issuer) as agent for the Registered Owners and invested in Federal Securities; and (b) any investment earnings (i) received on moneys on deposit in or transferred to the Debt Service Fund and accounts established therein with respect to such Series and (ii) required by the terms of this resolution to be retained in such Debt Service Fund. "Defeasance Obligations" means: (1) Federal Securities; and (2) obligations described in Section 103(a) of the Code, provIsion for the payment of the principal of, premium, if any, and interest on which shall have been made by the irrevocable deposit with a bank or trust company (which is a member of the FDIC and which has a combined capital, surplus and undivided profits of not less than $50,000,000) acting as a trustee or escrow agent for holders of such obligations, of securities described in clause (1) above, the maturing principal of and interest on which, when due and payable, will provide sufficient moneys, without reinvestment, to pay when due the principal of, premium, if any, and interest on such obligations, and which securities described in clause (1) above are not available to satisfy any other claim, including any claim of the trustee or escrow agent or of any person claiming through the trustee or escrow agent or to whom the trustee or escrow agent may be obligated, including in the event of the insolvency of the trustee or escrow agent or proceedings 5 5 {5000103/O000860 1.DOCv5} arising out of such insolvency and which are rated "AAA" by Moody's and "Aaa" by S&P. (3) to the extent provided with respect to a Series, obligations described in the resolution authorizing such Series. "Depository" means any securities depository that is operating and maintaining, with its participants or otherwise, a Book-Entry System to record ownership of beneficial interests in Bonds or debt service on Bonds and to effect transfers of Bonds in Book-Entry Form, including, but not limited to, DTC. "Escrow Deposit Agreement" means an agreement between the County and an Escrow Holder, providing for the deposit of a portion of the proceeds of Refunding Bonds in trust with the Escrow Holder for the purpose of making payment of the principal, premium, if specified, and interest on any Refunded Bonds. "Escrow Holder" means the bank or trust company, which may be located within or without the State, to be appointed by resolution of the Board, to hold a portion of the proceeds of the sale of any Refunding Bonds in trust pursuant to the provisions of an Escrow Deposit Agreement. "Federal Securities" means direct noncallable obligations of the United States of America or obligations the timely payment when due of the principal of and interest on which is fully and unconditionally guaranteed by the United States of America. "Finance Director" means the Finance Director of the County. "Fiscal Year" means the period commencing on October 1 of each year and ending on the succeeding September 30, or such other period as may be prescribed from time to time as the fiscal year for the County. "Fitch" means Fitch, Inc., or its successor. "Funds and Accounts" means the Revenue Fund, the Debt Service Fund, and the Project Fund created pursuant to Section 3.03(A) hereof, together with the accounts and any subaccounts therein. "Funds and Accounts" do not include the Rebate Fund. "Guaranty Agreement" means an agreement between the County and a Credit Facility Issuer relating to the reimbursement by the County to the Credit Facility Issuer of amounts advanced under a Reserve Account Credit Facility, together with interest thereon and expenses in connection therewith. "Independent Certified Public Accountants" means such firm of certified public accountants, not in the regular employ of the County, as shall be retained by the County for the 6 ó{ 5000/03/0000860 I.DOCvS} purpose of auditing the books and records relating to the Pledged Revenues and performing such other functions as are specified in this resolution. "Interest Payment Date" means, with respect to any Series of Bonds, the semiannual or other periodic dates on which interest is payable on the Current Interest Paying Bonds, as determined by or pursuant to resolution of the Board adopted at or prior to the time of issuance of such Bonds. "Investment Earnings" means the interest, dividends, and capital gains received from the investment, purchase, and sale of Authorized Investments held in the various funds and accounts established pursuant to this resolution. "Letter of Representations" means the blanket Jetter agreement between the County and DTC, dated March 2,1999, with respect to Bonds issued in book-entry onJy form. "Maximum Annual Debt Service Requirement" means, as of any particular date of calcuJation, the Debt Service Requirement for the then current or any future Bond Year which is greatest in dollar amount with respect to a particular Series of Bonds, or all Bonds, as the case may be. "Moody's" means Moody's Investors Service, or its successor. "Outstanding" means as applied to Bonds, as of any applicable time, all Bonds which have been authenticated and delivered, or which are being delivered, under the Bond Resolution except: (a) Bonds cancelled upon surrender, exchange or transfer, or cancelled after purchase in the open market or because of payment at or redemption prior to maturity; (b) Bonds, or portions thereof, which are considered no longer Outstanding pursuant to Section 6.08 hereof; (c) Bonds, or portions thereof, which are deemed paid upon the redemption or maturity thereof for which moneys sufficient to pay the maturity amount or redemption price thereof have been deposited into the appropriate accounts of the Debt Service Fund by the County or in lieu of which other Bonds have been issued under Section 2.06 or 2.07 hereof. For purposes of voting, giving directions and granting consents, Bonds held by the County or by an agent of the County shall not be deemed Outstanding. "Paying Agent" means the Person serving as Registrar and, where the context so requires, shall include any co-paying agent appointed as provided in this resolution. 7 7 {500010310000860 I.DOCv5} "Person" or words importing persons means firms, associations, partnerships (including without limitation, general and limited partnerships), joint ventures, societies, estates, trusts, corporations, public or governmental bodies, other legal entities and natural persons. "Pledged Revenue Sharing Trust Fund Moneys" means, in each Fiscal Year, when and as received by the County, an amount of Revenue Sharing Trust Fund Moneys equal to fifty percent (50%) of the amount of Revenue Sharing Trust Fund Moneys received by the County during the immediately preceding Fiscal Year. "Pledged Revenues" means (1) the Pledged Revenue Sharing Trust Fund Moneys, (2) the moneys on deposit in the Funds and Accounts and (3) the Investment Earnings. "Policy" means a municipal bond insurance policy guaranteeing timely payment of principal of and interest on the Bonds of a Series. "Principal Maturity Date" means, with respect to any series of Bonds, the annual or other periodic date on which (i) principal matures on the Current Interest Paying Bonds and (ii) Compounded Amounts are payable on Compounding Interest Bonds, as set forth in the Purchase Contract or as determined by subsequent resolution of the Board adopted at or prior to the issuance of Bonds, and in each case including applicable dates on which Amortization Installments are required to be applied to retire Term Bonds. "Prohibited Payment" means a payment, or an agreement to pay, to a Person other than the United States of America, an amount that is otherwise required to be paid to the United States of America through a transaction or series of transactions that reduces the amount earned on an investment or deposit or that results in a smaller profit or a larger loss on such investment or deposit than would have resulted in an arm's length transaction in which yield on Bonds was not relevant to either party to such investment or deposit. "Project" means the acquisition and construction of certain capital improvements within the County, as more particularly described in a Series Resolution, and all purposes incidental thereto. "Project Costs" means, but shall not necessarily be limited to: the cost of the acquisition and construction of a Project; the acquisition of any lands or interests therein or any other properties deemed necessary or convenient therefor; engineering, accounting, and legal fees and expenses; expenses for plans, specifications 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; the cost of purchasing any Credit Facility with respect to the Bonds; such other expenses as may be necessary or incidental to the financing authorized by a 8 8 {5000/03/0000860 ¡DOCvS} Series Resolution, to the Project, and to the placing of the same in operation; and reimbursement to the County for any sums expended for the foregoing purposes. "Rating Agency" means Fitch, Moody's, or S&P or any thereof, and their successors, if any is then maintaining a rating on any Series of Bonds. "Rebate Amount" means the amount required to be paid to the Internal Revenue service on each Rebate Payment Date in order to satisfy the requirements of Section 148(f) of the Code. "Rebate Payment Date" means the latest date on which the County is permitted to make timely payment of the Rebate Amount to the Internal Revenue Service. "Record Date" means, for any Series, the fifteenth (15th) day (whether or not a Business Day) of the calendar month immediately preceding an Interest Payment Date. "Redemption Date" means, for any Series, the date specified in the Purchase Contract or in a resolution of the Board on which any Bonds are to be redeemed prior to the maturity thereof, whether at the option of the County or by operation of the applicable Bond Amortization Account in the Debt Service Fund. "Refunded Bonds" means Outstanding Bonds for the payment of which Refunding Bonds have been issued and a portion of the proceeds of such Refunding Bonds applied to or for payment of such Outstanding Bonds. "Refunding" means the providing for payment of Refunded Bonds by the deposit with the Escrow Holder of a portion of the proceeds of Refunding Bonds or Subordinated Debt and other moneys necessary to pay in full the principal and on the Refunded Bonds. "Refunding Bonds" means Additional Parity Bonds issued for the purpose of a Refunding. "Refunding Costs" means but shall not necessarily be limited to: the cost of payment of the principal of, premium, if specified, and interest on the Refunded Bonds; expenses for estimates of costs and of revenues; the fees of fiscal agents, financial advisors and consultants; administrative expenses; the establishment of reasonable reserves for the payment of debt service on the Refunding Bonds; discount upon the sale of the Refunding Bonds; the expenses and costs of issuance of the Refunding Bonds; the cost of purchasing any Credit Facility or Reserve Account Credit Facility with respect to the Refunding Bonds; such other expenses as may be necessary or incidental to the financing authorized by the Bond Resolution, to the Refunding, and to the accomplishing thereof, and reimbursement to the County for any sums expended for the foregoing purposes. 9 9 {5000103/O000860 1.DOCv5} "Registered Owner" or "Owner" or "Bondholder" means 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 Credit Facility" means a policy of insurance, surety bond or other insurance or financial product (a) issued by an insurance company rated in the highest rating category by the S&P and Moody's and, if rated by A. M. Best & Co., in their highest category, and (2) which provides for payment of amounts equal to all or a portion of the Reserve Account Requirement in the event of an insufficiency of moneys in the Debt Service Fund to pay principal of and interest on any Series or installment of Bonds. "Reserve Account Credit Facility Costs" means the amounts the County is required to pay to the Reserve Account Credit Facility Issuer as a result of a draw thereunder or otherwise pursuant to such Reserve Account Credit Facility or any Guaranty Agreement. "Reserve Account Credit Facility Coverage" means the amount then available to be paid to the Paying Agent under the terms of the Reserve Account Credit Facility at any particular time. "Reserve Account Requirement" shall be equal to the lesser of (i) the Maximum Annual Debt Service Requirement, and (ii) the amount permitted under the Code as a reasonably required reserve or replacement fund. "Reserve Account Value" means the aggregate of the Reserve Account Credit Facility Coverage and the value of moneys and Authorized Investments credited to the Reserve Account. "Revenue Sharing Trust Fund Moneys" means the moneys distributed to the County from the State Revenue Sharing Trust Fund pursuant to Chapter 218, Part II, Florida Statutes. "S&P" means Standard & Poor's, or its successor. "Serial Bonds" means any Current Interest Paying or Compounding Interest Bonds for the payment of the principal of which, at the maturity thereof, no fixed mandatory Debt Service Fund or bond redemption deposits are required to be made prior to the 12-month period immediately preceding the stated date of maturity of such Serial Bonds. "Series" means Bonds identified by a common series designation, such as "Series 2005". "Series Resolution" means the resolution of the Board specifying or providing for the fiscal and other details with respect to a Series. "State" means the State of Florida. 10 10 {5000/03/0000860] DOCvS} "Subordinated Debt" means any obligations issued or incurred by the County which are junior and subordinate to the Bonds as to security for payment from the Pledged Revenues and in all other respects. "Surety Bond" means a Reserve Account Credit Facility issued in the form of a surety bond. "Term Bonds" means the Current Interest Paying or Compounding Interest Bonds of a Series, all of which shall be stated to mature on one date and which shall be subject to retirement by operation of the applicable Bond Amortization Account in the Debt Service Fund herein established. "Underwriter" means the investment banking firm or firms selected by the County as the initial purchaser of a Series. "Variable Rate Bonds" means Bonds, the interest rate on which is subject to adjustment at such times and in such manner as shall be determined by the Board prior to the sale thereof. "Verification Agent" means any firm of Independent Certified Public Accountants or other financial professionals in the business of providing reports as to the adequacy of amounts deposited into an escrow account to effect a defeasance of Bonds or Subordinated Debt and other information relative thereto at any time acceptable to the County, Bond Counsel, and any Credit Facility Issuer providing a Credit Facility with respect to Bonds or Subordinated Debt proposed to be defeased. "2005 Bond Insurer" means, with respect to the 2005 Bonds, Ambac Assurance Corporation, a Wisconsin domiciled stock insurance company, and its successors and assigns. The 2005 Bond Insurer is deemed to be a Credit Facility Issuer hereunder with respect to the 2005 Bonds. "2005 Bond Registrar and Paying Agent Agreement" means the Registrar and Paying Agent Agreement between the County and the Paying Agent and Registrar, substantially in the form attached hereto as Exhibit F. "2005 Bonds" means the State Revenue Sharing Improvement Revenue Bonds, Series 2005. "2005 Bond Purchase Contract" means the Bond Purchase Contract in substantially the form of Exhibit E hereto, with such changes thereto as shall be acceptable to the County Administrator, upon the advice of the County Attorney and Bond Counsel. "2005 Commitments shall mean the proposals of the 2005 Bond Insurer to issue the 2005 Policy and the 2005 Surety Bond, copies of which are attached hereto as Exhibit C. 11 11 {5000/03/0000860 I.DOCv5} "2005 Guaranty Agreement" means the Financial Guaranty Agreement between the County and the 2005 Bond Insurer, in substantially the form included in Exhibit C hereto. "2005 Policy" means the financial guaranty insurance policy issued by the 2005 Bond Insurer insuring the payment when due of the principal of and interest on the 2005 Bonds as provided therein. "2005 Project" means the acquisition and construction of certain capital improvements within the County, as more particularly set forth in Exhibit G hereto. "2005 Project Costs" means Project Costs related to the acquisition and construction of the 2005 Project. "2005 Surety Bond" means the Surety Bond issued by the 2005 Bond Insurer. The 2005 Surety Bond is deemed to be a Reserve Account Credit Facility hereunder with respect to the 2005 Bonds. "2005 Underwriter means SunTrust Capital Markets Inc. Section 1.03. Findings. It is hereby ascertained, determined, and declared as follows: (A) It is necessary and desirabJe and in the best interests of the health, safety and welfare of the County and its inhabitants that the County, from time to time, undertake the acquisition of real property and/or the acquisition and construction of certain capital improvements within the County, including particularly the 2005 Project. The County is authorized pursuant to the provisions of the Act to undertake the 2005 Project. (B) The County is without adequate, currently available funds to pay for the 2005 Project, and it is necessary and desirable and in the best interests of the County that it borrow the moneys necessary to accomplish the financing of the 2005 Project through the issuance of the 2005 Bonds in an aggregate principal amount not to exceed $14,000,000. The County is authorized pursuant to the provisions of the Act, to undertake the 2005 Project and to issue the 2005 Bonds to provide the necessary monies to pay the costs of the 2005 Project. (C) The County currently receives Revenue Sharing Trust Fund Moneys in accordance with the provisions of Section 218, Part II, Florida Statutes, as amended, and such Revenue Sharing Trust Fund Moneys are not pledged or encumbered to pay any debts or obligations of the County. The County is authorized pursuant to the provisions of the Act to pledge the Revenue Sharing Trust Fund Moneys to secure the payment of the Bonds. (D) The County is in full compliance with all provisions of the Act relating to its eligibility to receive the Revenue Sharing Trust Fund Moneys. 12 12 {5000/03/0000860 1.DOCv5} (E) The principal of, premium, if any, and interest on the Bonds and all required Debt Service Fund, reserve and other payments therefor will be secured by a lien upon and pledge of the Pledged Revenues. The County shall never be required to levy ad valorem taxes on any property therein to pay the principal of, premium, if any, and interest on the Bonds, or to make any Debt Service Fund or other payments with respect thereto. The Bonds and the premium, if any, and interest thereon shall not constitute a lien upon the 2005 Project or upon any other properties owned by or located within the boundaries of the County, but shall be secured by a lien upon and pledge of the Pledged Revenues. (F) The Bonds do not constitute a general obligation of, or a pledge of the faith and credit or the taxing power of, the County, the State of Florida or any agency or political subdivision thereof within the meaning of any constitutional or statutory provision or limitation, but are limited, special obligations of the County, the principal of, premium, if any and interest on which are payable from the Pledged Revenues as provided herein. Neither the State of Florida nor any political subdivision thereof nor the County shall be obligated to exercise its ad valorem taxing power in any form on any real or personal property in the County to pay the principal of the Bonds, the interest thereon or other costs incidental thereto or to pay the same from any other funds of the County except from the Pledged Revenues in the manner provided herein. (G) The County has received the Commitments from the 2005 Bond Insurer for issuance of the Policy and the Surety Bond, and it is in the best interests of the County to purchase the Policy and the Surety Bond in order to reduce the present value of the Debt Service Requirements with respect to the 2005 Bonds. (H) Based upon the Commitments, the County expects to receive from one or more Rating Agencies, at or prior to the issuance of the 2005 Bonds, bond ratings in the highest classification. (I) A negotiated sale of the 2005 Bonds is in the best interest of the County and is found to be necessary for the following reasons, as to which the following specific findings are hereby made: (1) the nature of the security for the 2005 Bonds makes it necessary to utilize the marketing services of the Underwriter in order to achieve the lowest interest rate on the 2005 Bonds; and (2) the sensitivity of interest rates has increased the risk of sale upon advertisement, and it is more likely that the County will achieve better market timing by sale through negotiation. (J) In order to enable the underwriters for the Bonds to comply with Rule 15c2-12 under the Securities Exchange Act of 1934, as amended (the "Rule"), in connection with the offering and sale of the Bonds, it is necessary (1) that the County's Preliminary Official Statement with respect to the Bonds be "deemed final" (except for permitted omissions) by a representative of the County prior to the underwriter's making an offer for the purchase of the Bonds and (2) that the County agree to provide continuing disclosure with respect to the Bonds. 13 13 {5000/03/0000860] . DOCv5} (K) It is necessary and desirable to approve the Commitments and the Official Statement for the Bonds; to establish the book-entry registration system provisions for the 2005 Bonds; to designate the Bond Registrar and Paying Agent for the 2005 Bonds, and to authorize the execution of certain other documents and the taking of all other necessary actions in connection with the issuance and delivery of the 2005 Bonds. (L) It is necessary and desirable to delegate to the County Administrator the authority to deem the preliminary official statement final and to execute the Purchase Contract and to fix the date, maturities, mandatory amortization installments, interest rates, redemption provisions and certain other details of the 2005 Bonds, subject to certain restrictions, hereinafter set forth. This resolution shall be the Series Resolution with respect to the 2005 Bonds. Section 1.04. Interpretation. Any reference herein to the County, to the Board or to any member or officer of either, includes entities or officials succeeding to their respective functions, duties or responsibilities pursuant to or by operation of law or lawfully performing their functions. Unless the context clearly indicates otherwise, any reference to a section or provision of the Constitution of the State or the Act, or to a section, provision or chapter of the Laws of Florida or the United States of America, includes that section, provision or chapter as amended, modified, revised, supplemented or superseded from time to time; provided, that no amendment, modification, revision, supplement or superseding section, provision or chapter shall be applicable solely by reason of this provision, if it constitutes in any way an impairment of the rights or obligations of the County, the officers, employees and members of the Board of the County, the Registrar, the Paying Agent, the Registered Owners, or any Credit Facility Issuer under the Bond Resolution, the Bonds or any other instrument or document entered into in connection with the issuance of any Bonds. Unless the context indicates otherwise, words importing the singular number include the plural number, and vice versa; the terms "hereof," "hereby," "herein," "hereto," "hereunder" and similar terms refer to this resolution; and the term "hereafter" means after, and the term "heretofore" means before, the date of this resolution or the date of issuance of any Bonds, as the case may be. Words of any gender include the correlative words of the other genders, unless the context indicates otherwise. Section 1.05. 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, the Bond Resolution shall be deemed to be and shall constitute a contract between the County and such Registered Owners, and the covenants and agreements herein set forth to be performed by the County shall be for the equal benefit, protection, and security of the Registered Owners of any and all such Bonds, all of which shall be of equal rank and without preference, priority, or distinction of any of the Bonds over any other thereof, except as expressly provided therein or herein. In consideration of the issuance of the Credit Facility, the Bond Resolution shall further be deemed to be and shall constitute a contract between the County and 14 14 (5000103/0000860 I.DOCv5} the Credit Facility Issuer. Except during any period when a default by the 2005 Bond Insurer exists under the 2005 Policy, the 2005 Bond Insurer is expressly recognized as and shall be a third-party beneficiary of the provisions of this resolution entitled to enforce any right, remedy or claim conferred, given or granted hereunder. Section 1.06. Captions and Headings. The captions and headings in this resolution are solely for convenience of reference and in no way define, limit or describe the scope or intent of any Articles, Sections, subsections, paragraphs, subparagraphs or clauses hereof. (End of Article I) 15 15 {5000/O310000860 1.DOCv51 ARTICLE II AUTHORIZATION OF 2005 PROJECT; DESCR1PTION, DETAILS AND FORM OF BONDS Section 2.01. Authorization Of Bonds. Subject and pursuant to the provisions of the Bond Resolution, obligations of the County, to be known as "State Revenue Sharing Improvement Bonds" are hereby authorized to be issued from time to time for the purpose of financing Project Costs and/or Refunding Costs. Section 2.02. Authorization Of 2005 Project And 2005 Bonds. The Board hereby specifically authorizes the 2005 Project. The Board hereby further authorizes the issuance of the 2005 Bonds in an aggregate principal amount not to exceed $14,000,000, to pay 2005 Project Costs. Section 2.03. Description Of Bonds. The Bonds of each Series shall be numbered; shall be in such denominations or maturity amounts; shall be dated as of the date of their delivery or such other date prior to the date of their delivery; shall bear interest, calculated on the basis of a 360-day year consisting of twelve 30-day months, at not exceeding the maximum rate allowed by law; payable on such dates; shall mature on the first day of such month, in such years, not to exceed thirty (30) years from the date thereof, and in such amounts; and shall be issued as Current Interest Paying Bonds, Compounding Interest Bonds, Variable Rate Bonds, Serial Bonds, Term Bonds, or any combination thereof; all the foregoing as shall be determined pursuant to the provisions of a Purchase Contract or by resolution of the Board. The fiscal details with respect to the 2005 Bonds shall be as set forth in the 2005 Purchase Contract. The Bonds of a Series may be issued all at one time or in installments from time to time. Different installments and Series of the Bonds may have such characteristics as shall be provided herein and by subsequent resolution of the Board and shall bear a designation to distinguish such Series or installment from other Series or installments of the Bonds. The Bonds of each Series shall be issued in fully registered form; shall be payable with respect to principal at the office of the Bond Registrar, as paying agent, or such other paying agent as shall be subsequently determined by the Board; 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, in the case of Current Interest Paying Bonds, 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, and in the case of Compounding Interest Bonds, at maturity upon presentation at the office of the Bond Registrar; provided that, for any Registered Owner of one million dollars ($1,000,000) or more in principal amount of Bonds, such payment shall, at the expense of, and upon the written request of such Registered Owner delivered to the Bond Registrar not later than the fifteenth (15th) Business Day preceding 16 16 {5000103/0000860 I.DOCv5} a Record Date, be made by wire transfer or other medium acceptable to the County and to such Registered Owner. Section 2.04. Execution And Authentication Of Bonds. The Bonds of each Series shall be executed in the name of the County by the Chairman and attested by the Clerk and the corporate seal of the Board or the County or facsimile thereof shall be affixed thereto or reproduced thereon. The signatures of the Chairman and Clerk may be manual or facsimile signatures imprinted or reproduced thereon. There shall be a Certificate of Authentication of the Bond Registrar on the Bonds, and no Bond shall 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. The authentication by the authenticating agent upon any Bond shall be conclusive evidence that the Bond so authenticated has been duly delivered hereunder and is entitled to the security and benefit hereof. In case anyone or more of the officers who shall have signed or sealed any of the Bonds shall cease to be such officer of the County before the 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 County by such person as at the actual time of the execution of such Bond shall hold the proper office in the County, 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 a bank or trust company located within or without the State of FJorida having a combined capital, surplus, and undivided profit of at least $50,000,000. The Bond Registrar shall be responsible for maintaining the books for the registration of the transfer and exchange of the Bonds. The County 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 County or the Bond Registrar) shall be accompanied by a written instrument or instruments of 17 17 {5000/03/0000860 I.DOCv5} transfer or authorization for exchange, in form and with guaranty of signature satisfactory to the County 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 County 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 County and the Bond Registrar shall not be required 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 Redemption Date and ending at the close of business on the Interest Payment Date or Redemption Date, as the case may be. New Bonds delivered upon any transfer or exchange shall be valid obligations of the County, evidencing the same debt as the Bonds surrendered, 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 County may elect to use a book-entry or immobilization system for issuance and registration of the Bonds of any Series, and the details of any such system shall be as fixed by subsequent resolution of the Board adopted prior to the time of issuance of such 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 shall be furnished to the County. 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 mutiJated 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 County and the Bond Registrar, complying with such other reasonable reguJations and conditions as the Bond Registrar and County may prescribe, and paying such expenses as the County may incur. All Bonds so surrendered shall be cancelled. If any such Bonds shall have matured or are about to mature, instead of issuing a substitute Bond, the Bond Registrar may pay the same, upon compliance with the foregoing conditions and requirements. 18 18 {5000/03/O000860 I.DOCv5} Any such duplicate Bonds issued pursuant to this Section shall constitute original contractual obligations on the part of the County, whether or not any lost, stolen or destroyed Bonds are found and shall be entitled to equal and proportionate benefits and rights with all other Bonds of such Series issued hereunder as to lien on and source and security for payment from the Pledged Revenues. Section 2.07. Temporary Bonds. Until Bonds in definitive form of any Series are ready for delivery, the County 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, limitations and conditions, one or more printed, lithographed or typewritten Bonds in temporary form, substantially of the tenor of the Bonds hereinbefore described and with appropriate omissions, variations and insertions. Until exchanged for Bonds in definitive form, such Bonds in temporary form shall be entitled to the lien and benefit of this resolution. The County shall, without uilleasonable 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 and deliver, in exchange therefor, Bonds of the same Series and 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 County and there shall be made no charge therefor to any Registered Owner. Section 2.08. Bond Anticipation Notes. In anticipation of the delivery of the Bonds of any Series and receipt of the proceeds thereof, the County may issue bond anticipation notes. Any bond anticipation notes except any series of notes which may be delivered pursuant to the applicable provisions hereof as Additional Parity Bonds; shall be considered to be Subordinated Debt for the purposes of, and shall be entitled to the benefits and protections of this resolution, junior and subordinate to the rights of the Registered Owners of any Outstanding Bonds. Provisions regarding the form of such bond anticipation notes and the security for any bond anticipation notes shall be set forth in a separate resolution of the Board adopted at or prior to the time of sale of such bond anticipation notes. Section 2.09. Provisions For Redemption. The Bonds may be redeemable, by operation of the applicable Bond Amortization Account or Redemption Account or, at the option of the County, as provided in the Purchase Contract or by subsequent resolution of the Board; provided that there shall be no optional redemption of Bonds at any time while any Reserve Account Credit Facility Costs are due and owing. (A) Notices To Owners. Not less than thirty (30) nor more than sixty (60) calendar days prior to the Redemption Date, notice of any such redemption, which shall be dated and state (a) the Redemption Date, (b) the Redemption Price, (c) the identification and respective principal amount of Bonds to be redeemed if less than all Bonds are to be redeemed, (d) that on the Redemption Date the Redemption Price will become due and payable on the Bond or portion thereof called for redemption, (e) that interest on each such Bond shall cease to accrue from and 19 ] 91500010310000860 I.DOCv51 after such date, and (f) the place where the Bonds are to be surrendered for payment of the Redemption Price (i) shall be filed with the Registrar, and (ii) shall be mailed by deposit in the U.s. Mail by First Class Mail, postage prepaid, to all Registered Owners of Bonds to be redeemed at their addresses as they appear on the registration books hereinabove provided for by the deposit of moneys with the Paying Agent. Interest shall cease to accrue on the Redemption Date on any Bonds duly called for prior redemption if payment of the Redemption Price has been duly provided for. Failure of any Registered Owner to receive notice properly given shall not affect (i) the validity of any such proceedings for redemption or (ii) the cessation from and after the Redemption Date of the accrual of interest on the Bonds called for redemption. (B) Notices To Depositories. In addition to the foregoing notice, further notice shall be given as set out below, but no defect in any such notice nor any failure to give all or any portion of any notice shall in any manner defeat the effectiveness of a call for redemption with respect to an Owner as to which notice is given as prescribed in Paragraph A above. Each such further notice of redemption given hereunder shall contain the information required above for an official notice of redemption plus: (i) the date of the Bonds of such Series being redeemed; (ii) the rate of interest borne by the Bonds being redeemed; (iii) the maturity date of the Bonds being redeemed; (iv) the CUSIP number of the Bonds being redeemed and (v) any other descriptive information needed to identify accurately the Bonds being redeemed. Each further notice of redemption under this Subsection (B) shall be sent at least thirty-two (32) days before the Redemption Date by registered or certified mail or overnight delivery service (at the expense of the addressee) to each Credit Facility Issuer and to all registered securities depositories then in the business of holding substantial amounts of obligations of types such as the Bonds (such depositories now being The Depository Trust Company of New York, New York, the Midwest Securities Trust Company of Chicago, Illinois, and the Philadelphia Depository Trust Company of Philadelphia, Pennsylvania) and to one or more national information services that disseminate notices of redemption of obligations such as the Bonds (such as Financial Information, Inc.' s Financial Daily Called Bond Service, Interactive Data Corporation's Bond Service, Kenny Information Service's Called Bond Service and Standard & Poor's Called Bond Record). Section 2.10. Fonn of Bonds. The text of the Bonds shall be in 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. Section 2.11. Book-Entry System. The 2005 Bonds shall be issued in book-entry only form. The County has entered into the Letter of Representations in the fonn furnished by DTC, and shall make such other provisions and perform such further acts as are necessary to provide for the issuance of the 2005 Bonds in book-entry only form. The 2005 Bonds shall be registered to Cede and immobilized in the custody of DTC. 20 20 {5000103/O000860 1.DOCv5) All payments for the principal of, interest and redemption premiums, if any, on the 2005 Bonds shall be paid by check, draft or wire transfer by the Paying Agent to Cede, without prior presentation or surrender of any Series 2005 Bond (except for final payment thereof); and shall constitute payment thereof pursuant to, and for all purposes, of the Bond Resolution. If less than all the outstanding 2005 Bonds of a single maturity are to be called for redemption, the County and the Paying Agent shall have no responsibility for the selection of the book-entry interests in the 2005 Bonds to be paid pursuant to the redemption, or for notification of that redemption or of that payment to, or for payment to, the beneficial owners of affected book-entry interests; all of which shall be handled by and in accordance with arrangements of DTC and its participants and others working through those participants. To the extent permitted by the provisions of the Letter of Representations referred to above, the County shall issue 2005 Bonds directly to beneficial owners of the Bonds other than DTC, or its nominee, in the event that: (a) DTC determines not to continue to act as securities depository for the 2005 Bonds; or (b) the County has advised DTC of its determination that DTC is incapable of discharging its duties; or (c) the County determines that it is in the best interest of the County not to continue the book-entry system or that the interests of the beneficial owners of the 2005 Bonds might be adversely affected if the book-entry system is continued. Upon occurrence of the events described in (a) or (b) above, the County shall attempt to locate another qualified securities depository, and shall notify holders of the 2005 Bonds through DTC if successful. If the County fails to locate another qualified securities depository to replace DTC, the County shall cause the Bond Registrar to authenticate and deliver replacement 2005 Bonds in certificate form to the beneficial owners of the 2005 Bonds. In the event the County makes the determination noted m (c) above (the County undertakes no obligation to make any investigation to determine the occurrence of any events that would permit the County to make any such determination), or if the County fails to locate another qualified securities depository to replace DTC upon occurrence of the events described in (a) or (b) above, the County shall mail a notice to DTC for distribution to the beneficial owners of the 2005 Bonds stating that DTC will no longer serve as securities depository, the procedures for obtaining such 2005 Bonds in certificated form, and the provisions which govern the 2005 Bonds including, but not limited to, provisions regarding authorized denominations, transfer and exchange, principal and interest payments, and other related matters. (End of Article II) 21 21 {5000/03/0000860] .DOCvS} ARTICLE III BONDS NOT GENERAL OBLIGATION OF COUNTY; PLEDGE OF REVENUES AND APPLICATION THEREOF Section 3.01. Bonds Not General Obligations or Indebtedness of the County. The Bonds do not constitute a general obligation of, or a pledge of the faith and credit or the taxing power of, the County, the State of Florida or any agency or political subdivision thereof within the meaning of any constitutional or statutory provision or limitation, but are limited, special obligations of the County, the principal of, premium, if any and interest on which are secured solely by a lien upon and pledge of the Pledged Revenues as provided herein and in the Series Resolution. Neither the County, nor the State of Florida or any agency or political subdivision thereof shaH be obligated to exercise its ad valorem taxing power or any other taxing power in any form on any real or personal property to pay the principal, premium, if any, or interest on the Bonds or other costs incidental thereto or to pay the same from any other funds except from the Pledged Revenues in the manner provided herein and in the Series Resolution. Section 3.02. Bonds Secured By Pledged Revenues. The payment of the Debt Service Requirement on aH of the Bonds issued hereunder shaH be secured forthwith equally and ratably with the other Bonds solely by a lien upon and pledge of the Pledged Revenues. The Pledged Revenues, in an amount sufficient to pay the Debt Service Requirement on the Bonds and to make aH other payments required hereunder are hereby, so long as any Bonds or Reserve Account Credit Facility Costs are Outstanding and unpaid hereunder, irrevocably pledged in the manner stated herein and in the Series Resolution to the payment of the Debt Service Requirement on the Bonds as the same becomes due and to the making of the other payments required hereunder. Notwithstanding the foregoing, no provision hereof is intended to prohibit the payment of Debt Service Requirement on any Series from, or the pledging to such payment of, any lawfully available additional reserves, security, obligations or sources of funds. The Bonds and the interest thereon shall not constitute a lien upon any Project or any other property of or in the County, but shall constitute a lien only upon the Pledged Revenues in the manner provided herein and in the Series Resolution. Section 3.03. Application Of Pledged Revenues. Until the Bonds shall no longer be Outstanding or until (a) there shaH have been set apart in the Debt Service Fund, including subaccounts therein for each Series, and the Bond Amortization Account and subaccounts therein, a sum sufficient to pay when due the entire Debt Service Requirement accrued and to accrue on such Series, or (b) provision for payment of the Bonds shaH have been made in accordance with the provisions of this resolution, the County covenants with the Registered Owners of, and any Credit Facility Issuer for, the Bonds as follows: 22 22 {5000/O3/O000860] .00Cv5} (A) Creation Of Funds And Accounts. There shall be created and established by the County on or before the first day that moneys are required by the terms hereof to be on deposit therein the following special funds and accounts, which shall be subject to the lien hereof; State Revenue Sharing Improvement Bonds Revenue Fund (hereinafter the "Revenue Fund"); State Revenue Sharing Improvement Bonds Debt Service Fund (hereinafter the "Debt Service Fund"), together with accounts therein to be known as the Reserve Account, the Bond Amortization Account and the Redemption Account (together with any subaccounts therein); State Revenue Sharing Improvement Bonds Project Fund (hereinafter, the "Project Fund"), together with any accounts therein; and State Revenue Sharing Improvement Bonds Rebate Fund (the "Rebate Fund"). (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 require a segregation of Pledged Revenues on the books and records of the County for the purposes and to establish priorities for application of such Pledged Revenues as provided herein. Cash and Authorized 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 restricted funds for the purposes provided herein and shall be maintained on the books of the County as separate and distinct from all other funds and accounts of the County, in the manner provided in this resolution. All moneys in such funds and accounts shall be continuously secured in the same manner as the County deposits are required to be secured by the laws of the State. Separate accounts may be maintained for different Series or 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 then current and any overdue payments to be made into such subaccounts unless specified otherwise); further provided that moneys on deposit in the accounts established for a particular Series may be specified not to be available to be used for payments required to be made from the corresponding accounts for any other Series. (C) Application Of State Revenue Sharing Funds. All Revenue Sharing Trust Fund Moneys shall, immediately upon receipt thereof, be deposited by the County into the Revenue Fund. Any moneys at any time on deposit in the Revenue Fund shall be disposed of in each month in each Bond Year only in the following manner and order of priority. 23 23 {5000/O3/O000860 1. DOCvS} (1) Moneys on deposit in the Revenue Fund shall first be used for deposit into the Debt Service Fund, of such sums as are necessary to pay one-sixth (1/6) of the interest becoming due on the Current Interest Paying Bonds on the next semi-annual Interest Payment Date, provided, however, that no deposit shall be required to the extent that payment of interest on the Bonds has been provided from the proceeds of the Bonds or from other moneys of the County legally available therefor. (2) Moneys on deposit in the Revenue Fund shall next be used for the deposit into the Debt Service Fund, in any year immediately before a Serial Bond maturity date, of such sums as are necessary to pay one-twelfth (1/12) of the principal maturing on Serial Bonds on the next principal maturity date, provided, however, that no deposit shall be required to the extent that payment of the principal on the Bonds has been provided from other moneys of the County legally available therefor. (3) Moneys on deposit in the Revenue Fund shall next be used for deposit into the Debt Service Fund, on a parity with the payments provided in Subsection (2) above, in any year immediately before a Compounding Interest Bond maturity date, of such sums as are necessary to pay one-twelfth (1/12) of the Compounded Amounts due on such maturity date, provided, however, that no deposit shall be required to the extent that payment of the Compounded Amounts on the Bonds has been provided from other moneys of the County legally available therefor. (4) Moneys on deposit in the Revenue Fund shall next be used for deposit into the Bond Amortization Account, on a parity with the payments provided in Subsections (2) and (3) above, a sum equal to one-twelfth (1/12) of the amount of the Amortization Installment for Term Bonds which shall become due and payable on the next Amortization Installment due date, provided, however, that no deposit shall be required to the extent that payment of the Amortization Installment on the Bonds has been provided from other moneys of the County Jegally available therefor. (5) Moneys shall next be used (a) first to repay to the Credit Facility Issuer any amounts drawn on a Reserve Account Credit Facility, (b) second to maintain on deposit in the Reserve Account moneys and Authorized Investments or Reserve Account Credit Facility Coverage, or a combination thereof, in an amount equal to the Reserve Account Requirement and (c) third to pay Reserve Account Credit Facility Costs. (6) Moneys shall next be used to cure any deficiency in the amounts required to be on deposit in the Debt Service Fund and Reserve Account. (7) Moneys shall next be used to pay the principal of and interest on any Subordinated Debt that may be outstanding in accordance with the terms thereof. (8) Remaining moneys may thereafter be withdrawn and used by the County for any lawful purpose. 24 24 {5000103/0000860 1.DOCv5} The foregoing provisions notwithstanding, the County shall not be obligated to deposit into the foregoing funds and accounts in any Fiscal Year any amount of Revenue Sharing Trust Fund Moneys in excess of the Pledged Revenue Sharing Trust Fund Moneys; further provided that the County shall not be prohibited from depositing amounts in excess of the Pledged State Revenue Sharing Moneys into the foregoing funds and accounts in its sole discretion. No further deposits shall be required to be made into the foregoing funds and accounts whenever there shall be on deposit in the Debt Service Fund, including the Reserve Account and the Bond Amortization Accounts therein, an amount of cash and Authorized Investments equal to all principal and interest due on the Bonds to the final maturity thereof or, if the Bonds have been duly called for prior redemption, to the redemption date. Credit shall be allowed against the required deposit amounts due as prescribed above for the payment of principal of and interest and Amortization Installment on Bonds to the extent of any other funds on deposit and available for such purpose in the applicable accounts of the Debt Service Fund including (i) capitalized interest, and (ii) any Investment Earnings transferred into such fund or account and available for such purposes. (D) Investment Of Moneys In Funds And Accounts: Application Of Investment Earnings. All moneys in the funds and accounts created hereunder shall be invested and reinvested only in Authorized Investments. Authorized Investments allocated to any fund or account shall mature not later than the respective dates, as estimated by the County, that moneys will be needed for the purposes thereof. In the case of the Reserve Account, investments shall mature not later than the earlier of five (5) years from their date or the final maturity of the Bonds, and Investment Earnings shall be retained in such account to the extent necessary to maintain the Reserve Account Requirement therein, or may be transferred to the Revenue Fund or to the Project Fund (or any account therein) created in connection with any Series, as determined by the County. Except as otherwise provided herein with respect to any particular moneys, and except in accordance with any Tax Compliance Certificate delivered in connection with the issuance of any applicable Series, all Investment Earnings shall, upon receipt, deposited into the Revenue Fund. (E) Use Of Moneys On Deposit In Funds And Accounts. The moneys on deposit in the funds and accounts herein established shall be used only in the following manner and only for the following purposes. (1) Debt Service Fund. Moneys on deposit in the Debt Service Fund and the Bond Amortization Account therein shall be used only to pay the principal of (including Amortization Installments), premium, if any, and interest on the Bonds as the same becomes due and for no other purpose. No further deposits shall be required to be made into said accounts in any Bond Year when the amount on deposit therein is equal to the Debt Service Requirement for the Bonds for such Bond Year. 25 25 {5000/O3/0000860 I.DOCvS} (2) Bond Amortization Account. Moneys held for the credit of the Bond Amortization Account shall be applied to the retirement of Term Bonds as follows: (a) the County in each Bond following order: Money in the Bond Amortization Account shall be applied by Year to the retirement of Term Bonds then outstanding in the (i) The Term Bonds of each issue of Bonds, to the extent of the Amortization Installment, if any, for such Bond Year for the Term Bonds of each such issue then outstanding, plus the applicable premium, if any, and if the amount available in such Bond Year shall not be sufficient therefor, then in proportion to the Amortization Installment, if any, for such Bond Year for the Term Bonds of each such issue then outstanding, plus the applicable premium, if any; provided, however, that if the Term Bonds of any such issue shall not then be subject to redemption from moneys in the Bond Amortization Account and if the County shall at any time be unable to exhaust the moneys applicable to the Term Bonds of such issue under the provisions of this clause or in the purchase of such Term Bonds under the provisions of Paragraph (b) below, such money or the balance of such money, as the case may be, shall be retained in the Bond Amortization Account and, as soon as it is feasible, applied to the purchase or redemption of Term Bonds of such issue; and (ii) Any balance then remaining, other than money retained under the first clause of this Paragraph (a), shall be applied to the retirement of such Term Bonds and Additional Parity Bonds as the County in its sole discretion shall determine, but only, in the case of the redemption of Term Bonds of any issue, in such amounts and on such terms as may be provided in the proceedings authorizing the issuance of the Bonds of such issue. (b) Subject to the provisions of Paragraph (a) above, the County may endeavor to purchase Term Bonds then outstanding at the most advantageous price obtainable with reasonable diligence, such price not to exceed the principal of such Term Bonds plus the amount of the premium, if any, which would be payable on the next redemption date to the Registered Owners of such Term Bonds if such Term Bonds should be called for redemption on such date from moneys in the Bond Amortization Account; provided, that no such purchase shall be made by the County within the period of 45 days immediately preceding any Interest Payment Date on which Term Bonds are subject to call for redemption, except from moneys in excess of the amounts set aside or deposited for the redemption of Term Bonds. (3) Reserve Account. Moneys in the Reserve Account shall be used only: (i) for the purpose of the payment of maturing Amortization Installments or principal of or interest on the Bonds when the other moneys allocated to the Debt Service Fund are insufficient therefor, and (ii) if there has been a draw upon a Reserve Account Credit Facility, to restore such Reserve Account Credit Facility in the amount of such draw, and (iii) to pay Reserve Account Credit Facility Costs. Any withdrawals from the Reserve Account shall be restored from the first available moneys after all required current payments have been made into the Debt Service Fund, including deficiencies for prior payments. The County shall comply with the provisions of Exhibit H, Part III, with respect to the 2005 Surety Bond. 26 26 {5000/O3/0000860 I.DOCv5} If and to the extent that the Reserve Account Requirement has been provided with a combination of cash and one or more Reserve Account Credit Facilities, all such cash shall be used (or Authorized Investments purchased with such cash shall be liquidated and the proceeds applied as required) prior to any drawing under a Reserve Account Credit Facility, and repayment of any draw on a Reserve Account Credit Facility shall be made prior to the replenishment of any such cash amount. If more than one Reserve Account Credit Facility is provided, drawings under such Reserve Account Credit Facilities shall be made on a pro rata basis (calculated by reference to the original maximum amounts available under each Reserve Account Credit Facility) after applying all available cash and Authorized Investments in the Reserve Account and prior to replenishment of any such cash draws, respectively. The Paying Agent shall ascertain the necessity of a claim or draw upon the Reserve Account Credit Facility and provide notice to the Credit Facility Issuer in accordance with its terms but not later than two business days prior to each Interest Payment Date. Upon the issuance of Additional Parity Bonds, additional moneys shall be deposited into the Reserve Account from the proceeds of such Additional Parity Bonds, or from other moneys of the County available therefor, in order to make the amount on deposit in the Reserve Account at the time of issuance thereof equal to the Reserve Account Requirement on both the outstanding Bonds and the Additional Parity Bonds. The foregoing provision notwithstanding, the County shall be entitled at the time of issuance of the Additional Parity Bonds to provide a Reserve Account Credit Facility in an amount equal to the difference between the Reserve Account Requirement calculated with respect to the Bonds outstanding and the Additional Parity Bonds proposed to be issued and the amount on deposit in the Reserve Account. Notwithstanding the foregoing, the County at any time may substitute a Reserve Account Credit Facility for all or any portion of the cash and Authorized Investments on deposit in the Reserve Account, subject only to such conditions and approvals as may be imposed by the Credit Facility Issuer providing such Reserve Account Credit Facility or by any Credit Facility Issuer having a Credit Facility or Reserve Account Credit Facility in effect as to any Bonds. The Authorized Investments on deposit in the Reserve Account shall be valued annually as of the last day of the Fiscal Year at their fair market value thereof, exclusive of accrued interest. If and whenever the moneys and Authorized Investments applied and allocated to the Reserve Account (except investment income to be deposited into the Revenue Fund as hereinafter provided) exceed the Reserve Account Requirement on all then Outstanding Bonds, such excess may be withdrawn and applied and allocated into the Revenue Fund. (4) Revenue Fund. Moneys on deposit in the Revenue Fund shall be used in each month first to make the required deposits into the Debt Service Fund and accounts therein in such month. Thereafter, the moneys on deposit in the Revenue Fund may be deposited into the Rebate Fund to the extent required or may be withdrawn and used by the County for any lawful purpose. 27 27 (5000/03/0000860 1.DOCv5} (5) Rebate Fund. Moneys on deposit in the Rebate Fund, if any, shall be used to make required payments to the U. S. Treasury at the times and in the amounts necessary to comply with the Code and thereafter may be withdrawn and used for any lawful purpose. (F) Payment Accounts. On or prior to each Interest Payment Date when Debt Service Requirement is due on any Bonds, funds for the payment of the Debt Service Requirement then due shall be transferred from the accounts in the Debt Service Fund and deposited in a payment account with the Paying Agent. The payment account shall be established in the name of the County, and moneys therein may be invested in overnight repurchase agreements fully collateralized by United States Obligations held by a third party. The payment account shall be held soJely for the benefit of the persons entitled to receive payment of the Debt Service Requirement with respect to which such moneys were deposited, subject however to the provisions of the next paragraph. All income on the investment of such moneys may be applied by the County for any lawful purpose and shall not be considered Pledged Revenues hereunder. The procedures contained in Exhibit H, Part I, shall be applicable with respect to payment of the 2005 Bonds. (G) Unclaimed Moneys. Moneys held by the paying agent for the payment of Debt Service Requirement and remaining unclaimed for a period of one (1) year from the date on which such moneys were due to pay such Debt Requirement Service may be withdrawn by the County 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 from the Pledged Revenues of the principal and interest thereon to the Interest Payment Date with respect to which such moneys were originally deposited. 28 28 {5000/03/O000860 I.DOCv5} ARTICLE IV APPLICATION OF 2005 BOND PROCEEDS; PROJECT FUND Section 4.01. Application of 2005 Bond Proceeds. The proceeds, including accrued interest and premium, if any, received from the sale of any or aH of the 2005 Bonds shall be applied by the County in the following manner and order of priority, simultaneously with their delivery to the Underwriters thereof, except to the extent provided otherwise in an officer's certificate or tax compliance certificate executed by the County in connection with the issuance and delivery of the 2005 Bonds: (A) The County shaH pay to the 2005 Bond Insurer the premiums for the 2005 Policy and the 2005 Surety Bond. (B) The accrued interest, if any, shaH be deposited in the Debt Service Fund herein created and used for the purpose of paying interest becoming due on the 2005 Bonds. (C) To the extent not paid or reimbursed therefor by the Underwriter of the 2005 Bonds in accordance with the provisions of the Purchase Contract, the County shall pay all costs and expenses in connection with the preparation, issuance and sale of the 2005 Bonds. (D) The balance of the proceeds shall be deposited in the 2005 Project Account hereby created and established in the Project Fund. Section 4.02. Project Fund. Moneys on deposit in the Project Fund shaH be withdrawn, used and applied by the County solely for the payment of the Project Costs and purposes incidental thereto, as described and set forth in the Series Resolution related to the particular Project. AH expenditures or disbursements from the Project Fund shaH be made only after such expenditures or disbursements shall have been approved in writing by the Board or its designee. All funds on deposit in the Project Fund, which in the opinion of the County, 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 to pay Project Costs. 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 shaH, subject to receipt of an opinion of Bond Counsel that such use will not adversely affect the exclusion from gross income for federal income tax purposes of interest on the Bonds, (1) first, be deposited into the Debt Service Fund, to the extent of any deficiency therein, and (2) second, be deposited into the Reserve Account to the extent of any deficiency therein, (3) third, be used to pay any Reserve Account Credit Facility Costs then due and owing, (4) fourth, be used for any 29 29{5000103100008601.DOCv5{ lawful capital purpose for which the Pledged Revenues can be used, and (5) fifth, be used to defease or redeem any outstanding Bonds. (End of Article IV) 30 30 {5000103/0000860] . DOCv5} ARTICLE V COVENANTSOFTHECOUNT~ REMEDIES Section 5.01. Covenants Of The County. So long as any of the Bonds shall be Outstanding, or until (a) there shall have been set apart in the Debt Service Fund and accounts therein, a sum sufficient to pay when due, the entire principal amount of the Bonds remaining unpaid, together with the premium, if any, with respect thereto and the interest accrued and to accrue thereon, or (b) provision for payment of the Bonds shall have been made in accordance with the provisions hereof, the County covenants with the Registered Owners of the Bonds and any Credit Facility Issuer for the Bonds as follows: (A) Books And Records: Annual Audit. The County will keep books and records of the Pledged Revenues, in which complete and correct entries shall be made in accordance with Accounting Principles, of all transactions relating to the Pledged Revenues; any Registered Owner and each Credit Facility Issuer shall have the right at all reasonable times to inspect all books, records, accounts and data of the County relating thereto. The County shall, within one hundred and eighty (180) days after the close of each Fiscal Year (or such other date as shall be specified by State law), cause the books, records and accounts of the County for such preceding Fiscal Year to be properly audited by the Independent Certified Public Accountants, and the County shaU mail upon written request, and make available generally, the audit report, or a reasonable summary thereof, to any Registered Owner and each Credit Facility Issuer. (B) Maintenance Of Eligibility To Receive Pledged Revenues. The County will take all actions as are necessary in order to maintain the eligibility of the County to receive the Revenue Sharing Fund Moneys, in accordance with the provisions of Section 218, Part II, Florida Statutes. (C) Issuance Of Other 2005 Bonds Payable Out Of Pledged Revenues. The County will not issue any obligations other than the 2005 Bonds and Additional Parity Bonds secured by a lien upon and pledge of 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 2005 Bonds and the interest thereon, upon the Pledged Revenues. Any obligations secured by a lien upon and pledge of the Pledged Revenues issued by the County other than the 2005 Bonds or Additional Parity Bonds, shall contain an express statement that such obligations are junior, inferior, and subordinate in all respects to the 2005 Bonds and any such Additional Parity Bonds as to lien on and source and security for payment from the Pledged Revenues, and in all other respects. 31 31 {5000/03/O000860 I.DOCv5} (D) Issuance Of Additional Parity Bonds. No Additional Parity Bonds shall be issued after the issuance of any Bonds pursuant to this resolution, except upon the following terms and conditions: Additional Parity Bonds payable from the Pledged Revenues may be issued by the County only if the average of the State Revenue Sharing Funds received by the County in each of the two Fiscal Years immediately preceding the date of sale of the Additional Parity Bonds, as evidenced by the written certificate of the County Administrator, shall have been at least equal to the sum of (a) one hundred thirty-five per centum (135%) of the Maximum Debt Service Requirement on (i) the Bonds issued pursuant to this resolution then outstanding, (ii) any Additional Parity Bonds theretofore issued and then outstanding, and (iii) the Additional Parity Bonds proposed to be issued, and (b) one hundred per centum (100%) of Reserve Account Credit Facility Costs, if any; provided, that the County shall not be required to comply with the foregoing test with respect to any Additional Parity Bonds issued for the purpose of refunding Outstanding Bonds where such refunding does not result in any increase in (x) the aggregate Debt Service Requirement with respect to the Bonds being refunded and (y) the Maximum Debt Service Requirement for the Bonds. No Additional Parity Bonds, shall be issued at any time, however, unless all of the payments into the respective funds and accounts provided for in this Resolution on Bonds then outstanding, and all other Debt Service Fund, Reserve Account or other payments provided for in this resolution, shall have been made in full to the date of issuance of said Additional Parity Bonds, and the County shall be in substantial compliance with all of the covenants, agreements and terms of this resolution. Such Additional Parity Bonds shall be deemed to have been issued pursuant to the Bond Resolution the same as the 2005 Bonds originally authorized and issued pursuant to the Bond Resolution, and all of the covenants and other provisions of the Bond Resolution (except as to details of such Additional Parity Bonds inconsistent herewith), shall be for the equal benefit, protection and security of the Registered Owners of the 2005 Bonds originally authorized and issued pursuant to the Bond Resolution and the Registered Owners of any Additional Parity Bonds. All of such Additional Parity Bonds, regardless of the time or times of their issuance, shall rank equally with other Bonds with respect to their lien on and source and security for payment from the Pledged Revenues without preference of any Bond over any other. (E) Tax Compliance. The County covenants that it will use, and will restrict the use and investment of, the proceeds of the Bonds in such manner and to such extent as may be necessary so that (a) the Bonds will not (i) constitute private activity bonds, arbitrage bonds or hedge bonds under Section 141, 148 or 149 of the Code or (ii) be treated other than as bonds to which Section 103(a) of the Code applies, and (b) the interest thereon will not be treated as a preference item under Section 57 of the Code. The County further covenants (a) that it will take or cause to be taken such actions that may be required of it for the interest on the Bonds to be and remain excluded from gross income 32 32 {5000/03/O000860 1. DOCv5{ for federal income tax purposes, (b) that it will not take or authorize to be taken any actions that would adversely affect that exclusion, and (c) that it, or persons acting for it, will, among other acts of compliance, (i) apply the proceeds of the Bonds to the governmental purposes of the borrowing, (ii) restrict the yield on investment property, (iii) make timely and adequate payments to the federal government, (iv) maintain books and records and make calculations and reports, and (v) refrain from certain uses of those proceeds and, as applicable, of property financed with such proceeds, all in such manner and to the extent necessary to assure such exclusion of that interest under the Code. The Chairman or the County Administrator, or any other officer having responsibility for the issuance of the Bonds of any Series, will give an appropriate certificate of the County for inclusion in the transcript of proceedings, setting forth the reasonable expectations of the County regarding the amount and use of all the proceeds of the Bonds of such Series, the facts, circumstances and estimates on which they are based, and other facts and circumstances relevant to the tax treatment of interest thereon. Each such officer is further authorized to make or effect any election, selection, choice, consent, approval, or waiver on behalf of the County with respect to the Bonds of any Series as the County is permitted or required to make or give under the federal income tax laws, for the purposes of assuring, enhancing or protecting favorable tax treatment or characterization of the Bonds of such Series or interest thereon or assisting compliance with requirements for that purpose, reducing the burden or expense of such compliance, reducing the rebate amount or payments of penalties thereon, or making payments in lieu thereof, or obviating such amounts or payments, as determined by such officer. Any such action of such officer will be in writing and signed by the officer. The County (a) will take or cause to be taken such actions which may be required of it for the interest on the Bonds of any Series to be and remain excluded from gross income for federal income tax purposes, and (b) will not take or permit to be taken any actions which would adversely affect that exclusion, and that it, or persons acting for it, will, among other acts of compliance, (i) apply the proceeds of the Bonds of such Series to the governmental purpose of the borrowing, (ii) restrict the. yield on investment property acquired with those proceeds, (iii) make timely rebate or penalty payments, if any, to the federal government, (iv) maintain books and records and make calculations and reports, and (v) refrain from certain uses of proceeds, all in such manner and to the extent necessary to assure such exclusion of that interest under the Code. The Chairman, the County Administrator and other appropriate officers are hereby authorized and directed to take any and all actions, make calculations and rebate or penalty payments, and make or give reports and certifications, as may be appropriate to assure such exclusion of that interest. The foregoing provisions of this Paragraph (E) shall not be applicable to Bonds of any Series which are issued by the County pursuant to Chapter 159, Part VII, Florida Statutes. 33 33 {5000/O3/0000860 1. DOCv5} (F) Payment Of Bonds. The County will pay the principal of, premium, if any, and interest on the Bonds when due. Section 5.02. Events Of Default. It shall be an event of default under this resolution if the County shall: (1) fail to deposit with the Paying Agent on the due date thereof sufficient funds to pay the Debt Service Requirement when due; (2) fail to deposit or pay within ten (10) days after the due date thereof any other required deposit or payment under this resoJution pursuant to Section 3.03C(1) through (6) hereof; (3) fail to comply in any material respect with any other covenant made in this resolution, if (a) such failure shall continue for more than thirty (30) days following notice of such failure to the County or (b) the County shall not within thirty (30) days of receipt of such notice have initiated steps to cure such default and thereafter have proceeded diligently to cure such default; provided however that the Credit Facility Issuer may waive any such defect if compliance shall be determined to be impossible of performance; or (4) there shall occur the filing by the County of a voluntary petition in bankruptcy, or the commission by the County of any act of bankruptcy, or the adjudication of the County as a bankrupt, or the assignment by the County for the benefit of its creditors, or the entry by the County into an agreement of composition with its creditors, or the approval by a court of competent jurisdiction of a petition applicable to the County in any proceeding for its reorganization, instituted under the provisions of the Federal Bankruptcy Act, as amended, or any similar act in any jurisdiction which may now be in effect or hereafter amended. Section 5.03. Remedies. Any Registered Owner, any Credit Facility Issuer, or any trustee acting for 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 of Florida 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 County or by any officer thereof, including the receipt and application of the Pledged Revenues and the taking of any and all actions necessary to entitle the County to receive the Pledged Revenues The foregoing provisions notwithstanding, so long as it is not in default under a Policy, a Bond Insurer, (a) acting alone, shall have the right to direct all remedies in an Event of Default; (b) shall be recognized as the Registered Owner of each Bond which it insures for purposes of exercising all rights and privileges available to bondholders, (c) shall have the right to institute any suit, action, or proceeding at law or in equity under the same terms as a Registered Owner 34 34 {5000/03/0000S60 I.DOCv5} under this resolution, and (d) must give its prior consent before any acceleration of principal on Bonds may be declared. If an event of default shall occur, 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 County, the Registered Owners of not less than twenty-five percent (25%) 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 trustee is also seeking or shall have sought to enforce any other right or exercise any other remedy in connection with Bonds. The receiver so appointed shall forthwith, directly or by his agents and attorneys, take possession of the various funds and accounts established hereunder, and shall hold, manage and control such funds and accounts, and in the name of the County shall exercise all the rights and powers of the County with respect to such funds and accounts as the County itself might do. Such receiver shall collect and receive all Pledged Revenues and maintain and apply the funds and accounts established by this resolution in the manner provided herein, 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 the Bonds, together with interest thereon, and all payments required under any covenants of this resolution for reserve, Debt Service 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 resolution shall have been cured and made good, possession of the funds and accounts created hereby shall be surrendered to the County upon the entry of an order of the court to that effect. Upon any subsequent default, any Registered Owner, 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 and apply the funds and accounts established hereunder in the name of the County, any Credit Facility Issuer for the Bonds, and the Registered Owner of the Bonds issued pursuant to this resolution as their interests shall appear. Such receiver shall have no power to sell, assign, mortgage, or otherwise dispose of any assets of any kind or character belonging or pertaining to the County, but the authority of such receiver shall be limited to the possession, and control, including the disbursement of moneys 35 3515000103100008601.DOCv5) from, the funds and accounts established hereby, for the sole purpose of the protection of the County, any Credit Facility Issuer and the Registered Owners as their interests shall appear. The Registered Owners of Bonds in an aggregate principal amount of not less than twenty-five per centum (25%) of Bonds then Outstanding may, by a duly executed certificate in writing, appoint a trustee for Registered Owners 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 County Clerk and with the Chairman. (End of Article V) 36 36 {5000103/O000860 I.DOCv5} ARTICLE VI M1SCELLANEOUS PROVISIONS Section 6.01. Sale Of 2005 Bonds; Delegation Of Authority To Execute Purchase Contract; Conditions To Exercise Of Authority. Based on the nature of the financing and the prevailing market conditions, the Board, in compliance with Section 218.385(1)(a), Florida Statutes, hereby finds, determines and declares that it is in the best interest of the County to sell the 2005 Bonds at negotiated sale to the Underwriter, pursuant to the provisions of the 2005 Purchase Contract. The County Administrator is hereby, subject to the conditions set forth on Exhibit B hereto, authorized and empowered to execute the Purchase Contract on behalf of the County and to deliver an executed copy thereof to the Underwriter. This delegation of authority is expressly made subject to certain conditions set forth on Exhibit B hereto, the failure of any of which shall render the Purchase Contract voidable at the option of the County. Section 6.02. Credit Facility and Reserve Account Credit Facility. The 2005 Commitments are hereby accepted and approved. There shall be printed on the back of each Series 2005 Bond a statement to the effect that payment of the principal of and interest on the 2005 Bonds is insured by the 2005 Bond Insurer under the 2005 Policy, and the proper officers of the County are hereby authorized and directed to payor cause to be paid the premiums stated in the 2005 Commitments upon the delivery of the 2005 Policy and the 2005 Surety Bond and to execute the 2005 Guaranty Agreement. Section 6.03. Notices To Credit Facility Issuer; Credit Facility Issuer Deemed Sole Bondowner And A Party In Interest. Whenever a Credit Facility Issuer shall be providing a Credit Facility with respect to any Bonds issued hereunder, such Credit Facility Issuer shall be entitled to receive and shall be provided by certified mail all notices and reports which are required herein to be prepared and to be sent or made available to Registered Owners of such Bonds. Notwithstanding any other provIsions of this resolution to the contrary, the Credit Facility Issuer, so long as it is not in default under the Policy, shall be deemed to be the sole Registered Owner of all Bonds insured by it for purposes of exercising rights, consents or remedies granted under this resolution. Any provision of this resolution to the contrary notwithstanding, if under any provision hereof any action is to be taken only with the consent or approval of a Credit Facility Issuer, and if at the time such consent or approval would otherwise be called for such Credit Facility Issuer is not in compliance with its payment obligations of or is contesting its obligations under its Credit Facility, then the rights of such Credit Facility Issuer to any consent or approval hereunder shall be suspended while any such noncompliance or contest is ongoing. 37 37 {5000/03/0000860 I. DOCv5} Except as expressly provided herein to the contrary, neither the County nor the Paying Agent shall take the Credit Facility into effect in determining whether the rights of Registered Owners are adversely affected by actions taken pursuant to the terms and provisions of the Bond Resolution. Each Credit Facility Issuer shall be included as a party in interest and as a party entitled to notify the Paying Agent or any trustee or the County to intervene in judicial proceedings that affect the Bonds or the security therefor. Any trustee, the Paying Agent and the County shall be required to accept notice of default from the Credit Facility Issuer. Section 6.04. Bond Registrar And Paying Agent And Agreement Therefor. The Bank of New York Trust Company, N. A., Jacksonville, Florida (the "Bank"), is hereby designated Bond Registrar and Paying Agent for the 2005 Bonds. The Chairman and Clerk are hereby authorized to execute a Paying Agent and Registrar Agreement between the County and such Bank and in a form to be approved by the County Attorney and Bond Counsel, upon delivery of the 2005 Bonds. Section 6.05. Authorization For Execution Of 2005 Bonds And Of Additional Documents And Certificates 1n Connection With The Delivery Thereof; Approval Of The Necessary Action; Approval Of Preliminary And Final Official Statements. The Chairman, County Administrator, Finance Director and Clerk, on the advice of the County Attorney and Bond Counsel, are hereby authorized and empowered, collectively and individually, to take all action and steps and to execute and deliver, on behalf of the County, and in their official capacities, the 2005 Bonds, and any and all instruments, documents, or certificates, including temporary 2005 Bonds, if necessary, a Tax Compliance Certificate, and a Continuing Disclosure Certificate, which are necessary or desirable in connection with the issuance and delivery of the 2005 Bonds. The certification by the County Administrator to the 2005 Underwriter that the form of preliminary Official Statement (the "Preliminary Official Statement") was deemed final (except for permitted omissions), and authorizing the distribution and use of that Preliminary Official Statement by the 2005 Underwriter in connection with the offering for sale of the 2005 Bonds is hereby ratified and confirmed. The proper officers of the County and each of them are authorized and directed, on behalf of the County, in their official capacities, to complete the Preliminary Official Statement, with such modifications, changes and supplements as those officers shall approve or authorize for purposes of preparing and determining, and to certify and otherwise represent, that the Preliminary Official Statement as so completed (the "Official Statement") is "final" for purposes of SEC Rule 15c2-12(b)(3) and (4). Those officers and each of them are also authorized to sign and deliver on behalf of the County, in their official capacities, the final Official Statement and such certificates in connection with the accuracy of the final Official Statement and any amendment thereto as may, in their judgment, be necessary or appropriate, to the Purchaser. The distribution and use of the final Official Statement by the 2005 Underwriter in connection with the original issuance of the 2005 Bonds is further approved. 38 38 {5000/03/O000860 I.DOCv5 } The approval of various documents and certificates hereby is hereby declared to be of such documents in substantially the form attached hereto as exhibits or as subsequently prepared, upon the advice of the County Attorney and Bond Counsel, with such insertions, deletions, and variations thereto as shall be approved by the officers executing such documents and certificates on behalf of the County, and in their official capacities, upon the advice of the County Attorney and Bond Counsel, such officers' approval thereof to be presumed by their execution. Section 6.06. Continuing Disclosure. The County hereby covenants and agrees that, in order to assist the Underwriter in complying with the Continuing Disclosure Rule with respect to the Bonds of any Series, it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate to be executed by the County prior to the time the County delivers the Bonds of such Series to the Underwriter, as it may be amended from time to time in accordance with the terms thereof. Notwithstanding any other provision of this resolution, failure of the County to comply with such Continuing Disclosure Certificate shall not be considered an event of default hereunder. However, the Continuing Disclosure Certificate shall be enforceable by the Series 2005 Bondholders in the event that the County fails to cure a breach thereunder within a reasonable time after written notice from a Series 2005 Bondholder to the County that a breach exists. Any rights of the Series 2005 Bondholders to enforce the provisions of the covenant shall be on behalf of all Series 2005 Bondholders and shall be limited to a right to obtain specified performance of the County's obJigations thereunder. Section 6.07. Defeasance. Notwithstanding the foregoing provisions of this resolution, if, at any time, the County 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 Jien on the Pledged Revenues in favor of the Registered Owners of such Bonds shall be no longer in effect. For purposes of the preceding sentence, deposit of noncallable Defeasance Obligations 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 Obligations, the principal and interest received will be sufficient, without reinvestment, in the opinion of a Verification Agent to make timely payment of the principal of, interest, and redemption premiums, if any, on such outstanding Bonds designated to be defeased, and receipt of an opinion of Bond Counsel to the effect that such deposit (1) satisfies the requirements of the Bond Resolution for a defeasance and (2) has no adverse effect on the exclusion from gross income for federal income tax purposes of interest on the Refunded Bonds, shall be considered "provision for payment". Nothing herein shall be deemed to require the County to call any of the Outstanding Bonds for redemption prior to maturity pursuant to any appJicable optional redemption provisions, or to impair the discretion of the County in determining whether to exercise any such option for early redemption. Notwithstanding the foregoing, (a) amounts paid by a Credit FaciJity Issuer with respect to any Bonds shall not be deemed paid for the purposes of this Section and such Bonds shall be deemed to be outstanding hereunder, and owned by such Credit Facility Issuer and such amounts shall remain due and owing hereunder until paid in accordance with the Bond Resolution; and (b) no defeasance shall be deemed to occur hereunder with respect to the County's obligation to pay Reserve Account Credit FaciJity Costs as long as 39 39{ 5000/03/0000860 1.DOCv5 any such costs are due and owing under the Guaranty Agreement. The 2005 Bond Insurer shall be provided at least fifteen (15) days' advance notice of any refunding of the 2005 Bonds. Section 6.08. 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 Board or any person executing the Bonds. Section 6.09. Modification Or Amendment. (A) No material modification or amendment of this resolution or of any resolution amendatory hereof or supplemental hereto, adverse to the interests of the Registered Owners, 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. (B) The County, 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 then outstanding, for anyone or more of the following purposes: (1) to make any changes or corrections in this resolution which the County 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 County for the purpose of further securing the payment of the Bonds; (3) to surrender any right, power or privilege reserved to or conferred upon the County 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; (7) to provide such changes which, in the opinion of the County, based upon such certificates and opinions of Independent Certified Public Accountant, Bond Counsel, financial advisors or other appropriate advisors as the County 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 40 40 {5000/O3/0000860 ¡.DOCv5} facilitate the issuance of other types of obligations, including, but not limited to, bonds, notes, certificates, warrants or other evidences of indebtedness, which are Subordinated Debt; (8) to modify any of the provisions of this resolution in any other respects, provided that such modification shall not be effective (a) with respect to the Bonds outstanding at the time such amendatory or supplemental resolution is adopted or (b) shall not be effective (i) until the Bonds Outstanding at the time such amendatory or supplemental resolution is adopted shall cease to be Outstanding, or (ii) until the Registered Owners thereof consent thereto. (C) The foregoing provisions of (A) and (B) notwithstanding, (1) no consent of any Registered Owners shall be required with respect to modification or amendment as to which modification or amendment the Credit Facility Issuer has provided its prior written consent and (2) no modification or amendment pursuant to paragraph (A) above shall be effective without the prior written consent to such modification or amendment of the Credit Facility Issuer, and (3) no modification or amendment shall (x) permit a change in the maturity of such Bonds, a reduction in the rate of interest thereon, a reduction in the amount of the principal obligation represented thereby or a reduction in the redemption premium required to be paid in connection with any optional redemption thereof; or (y) either affect the unconditional promise of the County to pay the principal of and interest on the Bonds, as the same 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, in either case (x or y) without the consent of the Registered Owners of all such Bonds. A notice and a copy of any amendment or modification shall be sent to each Credit Facility Issuer and to each Rating Agency at least 20 days prior to the execution or adoption thereof. Section 6.10. Severability Of Invalid Provisions. 1£ anyone 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 Jaw, though not expressly prohibited, or to be against public policy, or should for any reason whatsoever be held invalid, then such 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 6.11. Repealing Clause. All resolutions of the Board, or parts thereof, in conflict with the provisions of this resoJution are to the extent of such conflict, hereby superseded and repealed. 41 4115000/03/0000860 1.DOCv5} Section 6.12. Effective Date. This resolution shall take effect immediately upon its adoption. Passed and Adopted by the Board of County Commissioners at a regular meeting duly called and held this 17"' day of May 2005. (SEAL) ST. LUCIE COUNTY, FLORIDA \ i. . ,'-.,::..-- \...... -. --j-- By; .~ ,,:~:¡y¿¡jc:·:=Q¡17'i:·,..1~+-._ Chair, Board of County Commissioners, ATTEST: B)i. erk of the Circuit Court, ex officio Clerk of the Board County Attorney 42 42 {5000/O3/0000860 I.DOCvS} EXHIBIT A FORM OF BOND No. $ UNITED STATES OF AMERICA STATE OF FLORIDA ST. LUCIE COUNTY STATE REVENUE SHARING IMPROVEMENT BOND SERIES 2005 [FORM OF FIRST PARAGRAPH OF CURRENT INTEREST PAYING BOND] RATE OF INTEREST MATURITY DATE DATE OF ISSUE CUSIP % 1, REGISTERED OWNER: Cede & Co. PRINCIPAL AMOUNT: KNOW ALL MEN BY THESE PRESENTS, that SI. Lucie County, Florida (the "County"), for value received, hereby promises to pay to the Registered Owner designated above, or registered assigns, solely from the special funds hereinafter mentioned, on the Maturity Date specified above, the Principal Amount shown above, upon presentation and surrender hereof at the corporate trust office of The Bank of New York Trust Company, N.A., Jacksonville, 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 such interest to the maturity or prior redemption hereof being payable on , and semiannually thereafter on and 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 County kept by the Bond Registrar; provided, that for any Registered Owner of One Million Dollars ($1,000,000) or more in principal amount of Bonds, such payment shall, at the written request of such Registered Owner be by wire transfer or other medium acceptable to the County and to such Registered Owner. The principal of, premium, if any, and interest on this Bond are payable in lawful money of the United States of America. A-I (5000/03/0000860 I.DOCv5} [FORM OF FIRST PARAGRAPH OF COMPOUNDING INTEREST BOND] MATURITY DATE DATE OF ISSUE PRINCIPAL AMOUNT AT ISSUANCE PER $5,000 MATURITY AMOUNT $ CUSIP APPROXIMATE YIELD % 1, REGISTERED OWNER: MATURITY AMOUNT: KNOW ALL MEN BY THESE PRESENTS, that St. Lucie County, Florida (the "County"), for value received, hereby promises to pay to the Registered Owner designated above, or registered assigns, solely from the special funds hereinafter mentioned, on the Maturity Date specified above, the Maturity Amount shown above, upon presentation and surrender hereof at the corporate trust office of The Bank of New York Trust Company, N. A., Jacksonville, Florida, as Bond Registrar and Paying Agent; provided, that for any Registered Owner of One Million Dollars ($1,000,000) or more in principal amount of Bonds, such payment shall, at the written request of such Registered Owner, be by wire transfer or other medium acceptable to the County and to such Registered Owner. The Maturity Amount and premium, if any, of this Bond are payable in lawful money of the United States of America. [FORM OF REMAINING PARAGRAPHS FOR ALL BONDS] This Bond is payable from and secured solely by a lien upon and pledge of (i) the Pledged Revenue Sharing Trust Fund Moneys when and as received by the County pursuant to Chapter 218, Part II, Florida Statutes, as amended., (ii) moneys on deposit in certain funds and accounts established pursuant to the Bond Resolution (hereinafter defined), and (iii) certain Investment Earnings (collectively, the "Pledged Revenues"), all as defined and provided in Resolution No. 05-118, adopted by the Board on March 22,2005, as supplemented by Resolution No. 05-222, adopted on May 17, 2005, as amended and supplemented from time to time (collectively, the "Bond Resolution") hereinafter referred to. This Bond does not constitute a general obligation or indebtedness of the County, and it is expressly agreed by the Registered Owner of this Bond that such Registered Owner shall never have the right to compel the exercise of the ad vaJorem taxing power of the County, or the taxation of any property of or in the County, for the payment of the principal of and interest on this Bond or for the making of any payments provided for in said Bond Resolution. It is further agreed between the County and the Registered Owner of this Bond, that this Bond and the obligation evidenced hereby shall not constitute a lien upon the 2005 Project or any part thereof, or on any other property of or in the County, but shall constitute a lien only on the Pledged Revenues, in the manner provided in the Bond Resolution. This Bond is one of an authorized issue of Bonds, originally issued in the aggregate principal amount of $ , of like date, tenor and effect, except as to number, interest rate, and date of maturity, issued to finance (a) the acquisition and construction of certain capital improvements within the County, (b) the funding of a Reserve Account [through the purchase of a Surety Bond,] and (c) payment of the costs of issuance of the 2005 Bonds, all under the authority of and in full compliance with Chapters 125, Part I, and 218, Part II, Florida Statutes, Ordinance No. 87-77 of the County, as amended, and other applicable provisions of law, and the Bond Resolution, and is subject to all the terms and conditions of the Bond Resolution. Capitalized terms used herein shall have the meaning specified in the Bond Resolution. The County has entered into certain covenants with the Registered Owners of the Bonds of this issue for the terms of which reference is made to the Bond Resolution. In particular, the County has reserved the right to issue additional obligations payable from and secured by a lien upon and pledge of the Pledged Revenues on a parity with the Bonds of this issue and series, upon compliance with certain conditions set forth in the Bond Resolution. The County has also 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 Bond Resolution. . [Insert Redemption Provisions] Notice of such redemption shall be given in the manner provided in the Bond Resolution. 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. 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 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 Bond Resolution until the Certificate of Authentication hereon shall have been executed by the Bond Registrar. A-3 {5000103/O000860 I. DOCv5} IN WITNESS WHEREOF, St. Lucie County, Florida, has issued this Bond and has caused the same to be executed by the Chairman or Vice Chairman of the County, either manually or with his facsimile signature, and the corporate seal of the Board, or a facsimile thereof to be affixed hereto or imprinted or reproduced hereon, and the foregoing attested by the manual or facsimile signature of the Clerk of the Circuit Court, ex officio Clerk of the Board, all as of the Date of Issue above. (SEAL) ST. LUCIE COUNTY, FLORIDA By: Chair, Board of County Commissioners ATTEST: By: Clerk of the Circuit Court, ex officio Clerk of the Board of County Commissioners BOND REGISTRAR'S CERTIFICATE OF AUTHENTICATION This Bond is one of the Bonds of the issue described in the within-mentioned Bond Resolution. THE BANK OF NEW YORK TRUST COMPANY, N.A., as Bond Registrar By Authorized Signature Date of Authentication: STATEMENT OF INSURANCE A-5 {5000/0J/00008601.DOCvS} 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 - TEN ENT - JT TEN - as tenants in common as tenants by the entireties as joint tenants with right of survivorship and not of tenants in common UNIF GIF MIN ACT - (Cust.) Custodian for (Minor) Additional abbreviations may also be used although not listed above. ASSIGNMENT FOR VALUE RECEIVED, the undersigned sells, assigns and transfers to (Please insert Social Security or other Identifying Number of Assignee) the within Bond and does hereby irrevocably constitute and appoint the Bond Trustee as his agent to transfer the Bond on the books kept for registration thereof, with full power of substitution in the premises. Dated: Signature guaranteed: NOTICE: The signature to this assignment must correspond with the name of the Registered Owner as it appears upon the face of the within note in every particular, without alteration or enlargement or change whatever. NOTICE: Signature must be guaranteed by in institution which is a participant in the Securities Transfer Agent Medallion Program (STAMP) or similar program. (Authorized Officer) EXHIBIT B CONDITIONS OF AWARD The conditions to exercise by the County Administrator of the authority to execute the Purchase Contract are as follows: IA) The Purchase Contract shall be executed on or before [uly 1. 2005. IB) The Purchase Contract shall be executed by and on behalf of the County by the County Administrator in substantially the form approved by the County Administrator upon the advice of Bond Counsel and the County Attorney. the execution of the Purchase Contract for and on behalf of the County by the County Administrator being conclusive evidence of the approval of any such changes. insertions. omissions or filling in of blanks. IC) The aggregate principal amount Iwithout regard to any original issue discount or premium) of the 2005 Bonds to be sold shall not exceed $14.000.000. 1m The purchase price for the 2005 Bonds shall be equal to not less than 99% of the aggregate principal amount of the 2005 Bonds Iwithout regard to original issue discount or premium), plus accrued interest from their dated date to their date of delivery. IE) The true interest cost rate on the 2005 Bonds shall not exceed 5.25% per annum. IF) The County shall have received a disclosure statement from the Underwriter, setting forth the information required by Section 218.385, Florida Statutes, as amended. IG) The Underwriter shall have delivered to the County its good faith deposit in such form as is acceptable to the County Administrator upon the advice of the Financial Advisor in an amount equal to not less than one percent 11 %) of the par amount of the 2005 Bonds. IH) The 2005 Bonds shall be subject to redemption at the option of the County no later than [10 years 1 from their date. and at a redemption price not greater than [102%1 of the principal amount redeemed. {5000/0J/0000860 I.DOCv5} B-1 EXHIBIT C COMM1TMENTS 15000/03/0000860 I.DOCv5} C-I {5000103/0000860 1.DOCv5) EXHIBIT D PRELIMINARY OFFICIAL STATEMENT D-I EXHIBIT E BOND PURCHASE CONTRACT {5000/03/0000860 ¡DOCv5 { E-I EXHIBIT F BOND REGISTRAR AND P A Y1NG AGENT AGREEMENT {500010310000860 I.DOCvS} F-I EXHIBIT H BOND INSURER COVENANTS Part I. Payment Procedure Under the 2005 Policy As long as the 2005 Policy shall be in full force and effect, the County and any Paying Agent agree to comply with the following provisions: (a) At least one (I) Business Day prior to all Interest Payment Dates the County will detennine whether there will be sufficient funds in the Funds and Accounts to pay the principal of or interest on the 2005 Bonds on such Interest Payment Date. If the County detennines that there will be insufficient funds in such Funds or Accounts, the County shall so notifY the 2005 Bond Insurer. Such notice shall specify the amount of the anticipated deficiency, the 2005 Bonds to which such deficiency is applicable and whether such 2005 Bonds will be deficient as to principal or interest, or both. If the County has not so notified the 2005 Bond Insurer at least one (I) business day prior to an Interest Payment Date, the 2005 Bond Insurer will make payments of principal or interest due on the 2005 Bonds on or before the first (I st) Business Day next following the date on which the 2005 Bond Insurer shall have received notice of nonpayment from the County. (b) the County shall, after giving notice to the 2005 Bond Insurer as provided in (a) above, make available to the 2005 Bond Insurer and, at the 2005 Bond Insurer's direction, to The Bank of New York, in New York, New York, as insurance trustee for the 2005 Bond Insurer or any successor insurance trustee (the "Insurance Trustee"), the registration books of the County maintained by the Paying Agent and all records relating to the Funds and Accounts maintained under this resolution. (c) the County will cause the Paying Agent to provide the 2005 Bond Insurer and the Insurance Trustee with a list of registered owners of 2005 Bonds entitled to receive principal or interest payments from the 2005 Bond Insurer under the terms of the 2005 Policy, and shall make arrangements with the Insurance Trustee (i) to mail checks or drafts to the Registered Owners of 2005 Bonds entitled to receive full or partial interest payments from the 2005 Bond Insurer and (ii) to pay principal upon 2005 Bonds surrendered to the Insurance Trustee by the registered owners of 2005 Bonds entitled to receive full or partial principal payments from the 2005 Bond Insurer. (d) the County shall, at the time it provides notice to the 2005 Bond Insurer pursuant to (a) above, notifY Registered Owners of 2005 Bonds entitled to receive the payment of principal or interest thereon from the 2005 Bond Insurer (i) as to the fact of such entitlement, (ii) that the 2005 Bond Insurer will remit to them all or a part of the interest payments next coming due upon proof of the Registered Owner entitlement to interest payments and delivery to the Insurance Trustee, in fonn satisfactory to the Insurance Trustee, of an appropriate assignment of the Registered Owner's right to payment, (iii) that should they be entitled to receive full payment of principal from the 2005 Bond Insurer, they must surrender their 2005 Bonds (along with an appropriate instrument of assignment in fonn satisfactory to the Insurance Trustee to pennit ownership of such 2005 Bonds to be registered in the name of the 2005 Bond Insurer) for payment to the Insurance Trustee, and (iv) that should they be entitled to receive partial payment of principal from the 2005 Bond Insurer, they must surrender their 2005 Bonds for payment thereon first to the Paying Agent who shall note on such 2005 Bonds the {5000/O310000860 I.DOCvS} H-6 portion of the principal paid by the Paying Agent and then, along with an appropriate instrument of assignment in fonn satisfactory to the Insurance Trustee, to the Insurance Trustee, which will then pay the unpaid portion of principal. (e) in the event that the County or Paying Agent, if any, has notice that any payment of principal of or interest on a 2005 Bond which has become Due for Payment and which is made to a Registered Owner by or on behalf of the County has been deemed a preferential transfer and theretofore recovered from its Registered Owner pursuant to the United States Bankruptcy Code by a trustee in bankruptcy in accordance with the final, nonappealable order of a court having competent jurisdiction, the County shall cause the Paying Agent to, at the time the 2005 Bond Insurer is notified pursuant to (a) above, notify all Registered Owners that in the event that any Registered Owner's payment is so recovered, such Registered Owner will be entitled to payment !Tom the 2005 Bond Insurer to the extent of such recovery if sufficient funds are not otherwise available, and the Paying Agent shall furnish to the 2005 Bond Insurer its records evidencing the payments of principal of and interest on the 2005 Bonds which have been made by the Paying Agent and subsequently recovered !Tom Registered Owners and the dates on which such payments were made. (f) in addition to those rights granted the 2005 Bond Insurer under this resolution, the 2005 Bond Insurer shall, to the extent it makes payment of principal of or interest on 2005 Bonds, become subrogated to the rights of the recipients of such payments in accordance with the tenns of the 2005 Policy, and to evidence such subrogation (i) in the case of subrogation as to claims for past due interest, the Paying Agent shall note the 2005 Bond Insurer's rights as subrogee on the registration books of the County maintained by the Paying Agent upon receipt from the 2005 Bond Insurer of proof of the payment of interest thereon to the Registered Owners of the 2005 Bonds, and (ii) in the case of subrogation as to claims for past due principal, the Paying Agent shall note the 2005 Bond Insurer's rights as subrogee on the registration books of the County maintained by the Paying Agent upon surrender of the 2005 Bonds by the Registered Owners thereof together with proof of the payment of principal thereof Part II. Authorized Investments A. With respect to the Series 2005 Bonds, for all purposes under this resolution, including defeasance, Authorized Investments and Defeasance Obligations shall mean: (I) Cash (insured at all times by the Federal Deposit Insurance Corporation), Obligations of, or obligations guaranteed as to principal and interest by, the U.S. or any agency or instrumentality thereof, when such obligations are backed by the full faith and credit of the U.S. including: U.S. treasury obligations All direct or fully guaranteed obligations Fanners Home Administration General Services Administration Guaranteed Title XI financing Government National Mortgage Association (GNMA) State and Local Government Series Any security used for defeasance must provide for the timely payment of principal and interest and cannot be callable or prepayable prior to maturity (excluding securities that do not have a fixed par value and/or whose tenns do not promise a fixed dollar amount at maturity or call date). {5000/03100008601.DOCv51 H-6 B. With respect to the Series 2005 Bonds, for all purposes other than defeasance investments In refunding escrow accounts, Authorized Investments shall mean. (I) obligations of any of the following federal agencies which obligations represent the full faith and credit of the United States of America, including: -Export-Import Bank -Rural Economic Community Development Administration -U.S. Maritime Administration -Small Business Administration -U.S. Department of Housing & Urban Development (PHAs) -Federal Housing Administration -Federal Financing Bank (2) direct obligations of any of the following federal agencies which obligations are not fully guaranteed by the full faith and credit of the United States of America: -Senior debt obligations issued by the Federal National Mortgage Association (FNMA) or Federal Home Loan Mortgage Corporation (FHLMC). -obligations of the Resolution Funding Corporation (REFCORP) -Senior debt obligations of the Federal Home Loan Bank System -Senior debt obligations of other Government Sponsored Agencies approved by Ambac (3)U.S. dollar denominated deposit accounts, federal funds and bankers' acceptances with domestic commercial banks which have a rating on their short term certificates of deposit on the date of purchase of "P-I" by Moody's and "A-I" or "A-I +" by S&P and maturing not more than 360 calendar days after the date of purchase. (Ratings on holding companies are not considered as the rating of the bank); (4) Commercial paper which is rated at the time of purchase in the single highest classification, "p- I" by Moody's and "A-1+" by S&P and which matures not more than 270 calendar days after the date of purchase; (5)Investments in a money market fund rated "AAAm" or "AAAm-G" or better by S&P; (6)Pre-refunded Municipal obligations defined as follows: 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 which are not callable at the option of the obligor prior to maturity or as to which irrevocable instructions have been given by the obligor to call on the date specified in the notice; and which are rated, based on an irrevocable escrow account or fund (the "escrow"), in the highest rating category of Moody's or S&P or any successors thereto; or (i) which are fully secured as to principal and interest and redemption premium, if any, by an escrow consisting only of cash or obligations described in paragraph A(2) above, which escrow 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 date or dates thereof or the specified redemption date or dates pursuant to such irrevocable instructions, as appropriate, and (ii) which escrow is sufficient, as verified by a nationally recognized independent certified public accountant, to pay principal of and interest and redemption premium, if any, on the bonds or other obligations described in this paragraph on the maturity date or dates 15000/03/00008601.DOCv5} H-6 specified in the irrevocable instructions referred to above, as appropriate; [Pre-refunded Municipal obligations meeting the requirements of subsection (B) hereof may be used as Permitted Investments for annual appropriation lease transactions. (7) Municipal obligations rated "Aaa/AAA" or general obligations of States with a rating of "A2/A" or higher by both Moody's and S&P. (8) Investment Agreements approved in writing by the 2005 Bond Insurer (supported by appropriate opinions of counsel); (9) Investments in the Local Government Surplus Funds Trust Fund of the State of Florida, created and established pursuant to Part IV, Chapter 218, Florida Statutes, administered by the State Board of Administration (10) other forms of investments (including repurchase agreements) approved in writing by Ambac. C. The value of the above investments shall be determined as follows: F or the purpose of determining the amount in any fund, all Authorized Investments credited to such fund shall be valued at fair market value. The County shall detennine the fair market value based on accepted industry standards and from accepted industry providers. Accepted industry providers shall include but are not limited to pricing services provided by Financial Times Interactive Data Corporation, Merrill Lynch, Salomon Smith Barney, Bear Steams, or Lehman Brothers. As to certificates of deposit and bankers' acceptances: the face amount thereof, plus. accrued interest thereon; and c) As to any investment not specified above: the value thereof established by prior agreement among the County and Ambac. Part III. Payments under the 2005 Surety Bond A. As long as the 2005 Surety Bond shall be in full force and effect, the County and Paying Agent agree to comply with the following provisions: (a) In the event and to the extent that moneys on deposit in the Debt Service Fund, plus all amounts on deposit in and credited to the Reserve Account in excess of the amount of the Surety Bond, are insufficient to pay the amount of principal and interest corning due, then upon the later of: (i) one (I) day after receipt by the General Counsel of the 2005 Bond Insurer of a demand far payment in the form attached to the 2005 Surety Bond as Attachment I (the "Demand for Payment"), duly executed by the Paying Agent certifying that payment due under the resolution has not been made to the Paying Agent; or (ii) the payment date of the 2005 Bonds as specified in the Demand for Payment presented by the Paying Agent to the General Counsel to the 2005 Bond Insurer, Ambac will make a deposit of funds in an account with the Paying Agent or its successor, in New Yark, New York, sufficient for the payment to the Paying Agent, of amounts which are then due to the Paying Agent under the resolution (as specified in the Demand for Payment) up to but not in excess of the 2005 Surety Bond Coverage, as defined in the 2005 Surety Bond; provided, however, that in the event that the amount on deposit in, or credited to, the Reserve Account in addition to the amount available under the 2005 Surety Bond, includes amounts available under a letter of credit, insurance policy, 2005 Surety Bond or other such funding instrument (the "Additional Funding {5000/O3/0000860 1. DOCvS} H-6 Instrument"), draws on the 2005 Surety Bond and the Additional Funding Instrument shall be made on a pro rata basis to fund the insufficiency. (b) the County or Paying Agent shall, after submitting to the 2005 Bond Insurer the Demand for Payment as provided in (a) above, make available to the 2005 Bond Insurer all records relating to the Funds and Accounts maintained under this resolution. (c) the County or Paying Agent shall, upon receipt of moneys received from the draw on the 2005 Surety Bond, as specified in the Demand for Payment, credit the Reserve Account to the extent of moneys received pursuant to such Demand. (d) the Reserve Account shall be replenished in the following priority: (i) principal and interest on the 2005 Surety Bond shall be paid from first available Pledged Revenues [principal and interest on the 2005 Surety Bond and on the Additional Funding Instrument shall be paid from first available Pledged Revenues on a pro rata basis]; (ii) after all such amounts are paid in full, amounts necessary to fund the Reserve Account to the required level, after taking into account the amounts available under the 2005 Surety Bond and the Additional Funding Instrument shall be deposited from next available Pledged Revenues. Part IV. General Covenants and Agreements With respect to the Series 2005 Bonds, in this resolution (1) all references to the Credit Facility Issuer shall be deemed to be references to the 2005 Bond Insurer, (2) all references to the Credit Facility shall be deemed to be references to the 2005 Policy, and all references to the Reserve Account Credit Facility shall be deemed references to the 2005 Surety Bond. All notices required to be sent to the 2005 Bond Insurer shall be sent to the following address: Ambac Assurance Corporation One State Street Plaza New Yark, New Yark 10004 Attention: Surveillance Department Except during any period when the 2005 Bond Insurer is in default of its obligations under the 2005 Policy, the 2005 Bond Insurer (1) shall enjoy and have all rights, privileges and benefits granted to the Credit Facility Issuer under the provisions of this resolution and, in addition (2) shall have the following rights, privileges and benefits: A. The County shall mail a copy of its annual audit report and such additional information as it shall request to the 2005 Bond Insurer, attention Surveillance Department. B. The 2005 Bond Insurer shall have the right to direct an accounting of the Pledged Revenues at the County's expense, and any failure by the County to comply within 30 days of receipt of written notice of such direction from the 2005 Bond Insurer shall be deemed an event of default hereunder, provided that, if compliance cannot occur within such period, then such {5000103/O000860 ¡DOCv5 { H-6 period will be extended if compliance is begun within such period and diligently pursued, but only if such extension does not adversely affect the interests of the Registered Owners of the 2005 Bonds. C. Any reorganization or compromise of creditor's rights with respect to the County must be acceptable to the 2005 Bond Insurer to the extent that the right of such approval is vested in or granted to the Registered Owners of the 2005 Bonds. D. The 2005 Bond Insurer shall be provided with (i) any certificate provided with respect to the Pledged Revenues, (ii) each Continuing Disclosure Report, and (iii) a full transcript of any proceedings relating to the execution of any supplemental resolution hereto. Notices to the 2005 Bond Insurer shall be sent to the address specified above. E. The County will permit the 2005 Bond Insurer to discuss the affairs, finances and accounts of the County or other information the 2005 Bond Insurer may reasonably request regarding the Pledged Revenues with appropriate County officials. F. The County shall promptly notify the 2005 Bond Insurer of (i) any failure by the County to provide notices or certificates required under this resolution, (ii) the occurrence of any event of default hereunder or (iii) any deficiency in the amounts required to be on deposit in the Debt Service Fund. G. The Paying Agent for the 2005 Bonds may be removed by the 2005 Bond Insurer at any time for any breach of trust; further provided, that the 2005 Bond Insurer shall be notified of any resignation, removal or replacement of the Paying Agent for the 2005 Bonds; further, provided that the 2005 Bond Insurer shall have the right to approve any Paying Agent for the 2005 Bonds. The consent of the 2005 Bond Insurer shall be required for the removal and/or replacement of the Paying Agent. H. Any provision of this resolution expressly recognizing or granting rights in or to the 2005 Bond Insurer may not be amended in any manner which affects the 2005 Bond Insurer without the prior written consent of the 2005 Bond Insurer; the 2005 Bond Insurer shall be entitled to charge the County a reasonable fee in connection with the giving of any consent to, or otherwise in connection with, any amendment to this resolution so long as the 2005 Policy is in effect and the 2005 Bond Insurer is not in default thereunder. 15000103/00008601DOCv5 H-6