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HomeMy WebLinkAbout14-107RESOLUTION 14-107 A RESOLUTION OF THE ST. LUCIE COUNTY SUSTAINABILITY DISTRICT AUTHORIZING EXECUTION OF A FUNDING AGREEMENT BETWEEN THE DISTRICT, THE SOLAR AND ENERGY LOAN FUND OF ST. LUCIE COUNTY, INC. AND INLAND ST. LUCIE PACE, LLC, PROVIDING FOR THE ISSUANCE OF BONDS, THE PROCEEDS OF WHICH WILL FINANCE QUALIFYING IMPROVEMENTS; APPROVING THE FORM OF BOND TO BE USED IN CONNECTION THEREWITH; AUTHORIZING THE CHAIR AND OTHER DISTRICT OFFICIALS TO TAKE SUCH ACTIONS AND EXECUTE SUCH DOCUMENTS AS MAY BE NECESSARY TO EFFECTUATE THE TRANSACTIONS CONTEMPLATED HEREIN; PROVIDING FOR CERTAIN OTHER MATTERS IN CONNECTION THEREWITH; AND PROVIDING AN EFFECTIVE DATE. BE IT RESOLVED BY THE GOVERNING BOARD OF THE ST. LUCIE COUNTY SUSTAINABILITY DISTRICT AS FOLLOWS: SECTION 1. AUTHORITY. This Resolution of the St. Lucie County Sustainability District (the "District") is adopted pursuant to the provisions of Chapter 1-19 of the Code of Ordinances (the "Ordinance") of St. Lucie County, Florida (the "County"), Chapter 189, Florida Statutes, Section 163.08, Florida Statutes, County Resolution No. 10-259, and other applicable provisions of law (collectively, the "Act"). SECTION 2. DEFINITIONS. Capitalized terms not otherwise defined herein shall have the meanings set forth in the Ordinance, County Resolution No. 10-259, and the form of Funding Agreement attached hereto as Appendix A. SECTION 3. FINDINGS. It is hereby ascertained, determined and declared as follows: (A) The County enacted the Ordinance in order to create the District and establish the Energy Financing Program which offers qualified owners of real property an opportunity to acquire Qualifying Improvements and repay the costs associated with such improvements through voluntary special assessments imposed by the District pursuant to Financing Agreements (the "Project"). 1 (B) Pursuant to Resolution 2012-001 adopted on July 3, 2012, the District engaged the Solar and Energy Loan Fund of St. Lucie County, Inc. ("SELF") as Program Administrator for the Energy Financing Program. (C) Inland St. Lucie PACE, LLC (the "Lender") has expressed a willingness to purchase Bonds issued by the District for the ultimate purpose of financing the costs associated with Qualifying Improvements constructed pursuant to Financing Agreements, in accordance with a term sheet submitted by a corporate affiliate of the Lender dated February 24, 2014 (the "Term Sheet"). (D) The Lender is willing to provide the District with anon-revolving line of credit related to the issuance of the Bonds described above in the not to exceed amount of $1,000,000 (the "Loan") based on the terms set forth in the Term Sheet and documented in the form of a Special Assessment Funding Agreement (Energy and Sustainability Financing Program) between the District, SELF and the Lender attached hereto as Appendix A (the "Funding Agreement"). (E) The District shall make one or more draws under the Loan, each drawing shall constitute a separate borrowing evidenced by a separate revenue bond issued by the District to the Lender entitled "St. Lucie County Sustainability District Taxable Special Assessment Bond, Series 20_" and numbered sequentially (the "Bonds"). (F) Due to the nature of the security for the Bonds, the size of the Loan, the willingness of the Lender to purchase the Bonds at interest rates favorable to the District and the critical importance of timing of the sale of the Bonds, it is hereby determined under Section 218.385 that it is in the best interest of the public and the District to accept the offer of the Lender to purchase the Bonds at a negotiated sale pursuant to the terms of the Term Sheet and the Funding Agreement. (G) The Project is a capital project appropriately undertaken by the District under the Act and the District hereby authorizes the Project and the capital expenditures necessary to complete the Project. (H) The District hereby determines that it is necessary, desirable and in the best interests of the District and its inhabitants that the District undertake the Project and that the Project will serve the essential public purposes of the District. 2 SECTION 5. AUTHORIZATION OF BONDS. The District hereby approves and authorizes issuance of the Bonds for purposes of providing financing for the acquisition and construction of the Qualifying Improvements comprising the Project. The Bonds shall be dated, bear interest, be payable, mature, be subject to prepayment and have such other characteristics as provided in the form of Funding Agreement attached hereto as Appendix A and shall be secured by the Special Assessments as described therein. Such Funding Agreement, including the form of Financing Agreement and form of Bond attached thereto, are hereby approved. The District hereby authorizes the Chair to execute and deliver, and the Clerk of the District (the "Clerk") to attest, on behalf of the District, the Funding Agreement and the Bonds in substantially the forms attached hereto as Appendix A, with such changes, insertions, and additions as the Chair may approve after consultation with the County Attorney, the Chair's execution thereof being evidence of such approval, for purposes of providing financing for the Project. The approval of execution given herein includes the approval of the District to allow the Chair to execute and deliver, and the Clerk to attest, any requested documents on behalf of the District with respect to closing the Loan and issuance of the Bonds. SECTION 6. SECURITY FOR BONDS. The principal and interest of the Bonds issued hereunder shall be payable solely from and secured by a lien upon the Special Assessments, in the manner and to the extent provided in the Funding Agreement (the "Pledged Revenues"). SECTION 7. ADVANCES UNDER THE LOAN. The Loan may be drawn upon in multiple drawings in accordance with the terms set forth in the Funding Agreement. SECTION 8. AUTHORIZATION OF OTHER DOCUMENTS TO EFFECT TRANSACTION. To the extent that other documents, certificates, opinions, or items are needed to effect any of the transactions referenced in this Resolution, the Funding Agreement, Financing Agreements or the Bonds and the security therefore, the Chair and other District officials and staff are hereby authorized to execute and deliver and the Clerk is hereby authorized to attest on behalf of the District such documents, certificates, opinions, or other items and to take such other actions as are necessary or advisable for the full, punctual, and complete performance of the covenants, agreements, provisions, and other terms as are contained herein and in the documents included herein by reference. SECTION 9. LIMITED OBLIGATION. The Bonds are special and limited obligations of the District secured solely by the Pledged Revenues, and are payable from the Pledged Revenues, in the manner and to the extent described herein and in the Funding Agreement. The Bonds will not constitute a general debt, liability or obligation of the District, the County or the State of Florida or any political subdivision thereof within the meaning of any constitutional or statutory provision. Neither the faith and credit nor the taxing power of the 3 District, the County or of the State of Florida or any political subdivision thereof is pledged to the payment of the principal of or interest on the Bonds and neither the holder thereof nor any other party shall ever have the right to compel any exercise of any ad valorem taxing power of the District, the County or of the State of Florida or any political subdivision thereof, directly or indirectly to enforce such payment. The Bonds shall not constitute a lien upon any property of the District or the County except upon the Pledged Revenues in the manner and to the extent described herein and in the Funding Agreement. SECTION 10. FINANCING AGREEMENTS. The County Administrator or designee thereof is authorized and directed to execute, and the Deputy Clerk is authorized to attest, Financing Agreements on behalf of the District in substantially the form attached to the Funding Agreement, with such changes, insertions, and additions as the County Administrator may approve after consultation with the County Attorney, the County Administrator's execution thereof being evidence of such approval. SECTION 11. EFFECTIVE DATE. This Resolution shall take effect immediately upon its adoption. Passed and adopted by the St. Lucie County Sustainability District at a regular meeting duly called this 15th day of July, 2014. ST. LUCIE COUNTY ATTEST: SUSTAINABILITY DISTRICT By: ~ .. Chair APPRO~D AS TO FORM & CORRECTNESS: ~~%~% ~~i County Attorney 4 - -r °-~ ------ APPENDIX A FORM OF FUNDING AGREEMENT SPECIAL ASSESSMENT FUNDING AGREEMENT (ENERGY AND SUSTAINABILITY FINANCING PROGRAM) By and Between ST. LUCIE COUNTY SUSTAINABILITY DISTRICT and INLAND MORTGAGE INVESTMENT CORPORATION and SOLAR AND ENERGY LOAN FUND OF ST. LUCIE COUNTY, INC. Dated as of , 2014 TABLE OF CONTENTS (The Table of Contents for this Agreement is for convenience of reference only and is not intended to define, limit or describe the scope or intent of any provisions of this Agreement. Page ARTICLE I -- DEFINITION OF TERMS .................................................................................................. 2 Section 1.01. Definitions ....................................................................................................................... 2 Section 1.02. Interpretation .................................................................................................................. 4 Section 1.03. Titles and Headings ....................................................................................................... 4 ARTICLE II --REPRESENTATIONS AND WARRANTIES OF THE PARTIES ................................5 Section 2.01. Representations and Warranties of the District .........................................................5 Section 2.02. Representations and Warranties of Lender ................................................................ 5 Section 2.03. Representations and Warranties of SELF .................................................................... 6 Section 2.04. Program Administrator; Approvals ............................................................................ 6 ARTICLE III -- ADVANCES .....................................................................................................................8 Section 3.01. The Line of Credit; Purpose and Use ...........................................................................8 Section 3.02. The Loan .......................................................................................................................... 9 Section 3.04. Conditions Precedent to Advances ............................................................................12 Section 3.05. Application of Advances .............................................................................................15 ARTICLE IV -- COVENANTS OF THE DISTRICT .............................................................................17 Section 4.01. Performance of Covenants ..........................................................................................17 Section 4.02. Payment of Loan ...........................................................................................................17 Section 4.03. Compliance with Laws and Regulations ..................................................................18 Section 4.04. Compliance with Section 215.84, Florida Statutes ...................................................18 Section 4.05. Issuance of Other Debt ................................................................................................18 ARTICLE V -- EVENTS OF DEFAULT AND REMEDIES .................................................................19 Section 5.01. Events of Default ..........................................................................................................19 Section 5.02. Remedies ........................................................................................................................19 Section 5.03. Remedies Not Exclusive ..............................................................................................19 Section 5.04. Waivers, Etc ...................................................................................................................19 ARTICLE VI -- MISCELLANEOUS PROVISIONS ............................................................................. 21 Section 6.01. Covenants of District; Successors ...............................................................................21 Section 6.02. Term of Agreement; Exclusivity .................................................................................22 Section 6.03. Notice of Changes in Fact ............................................................................................22 Section 6.04. Amendments and Supplements .................................................................................22 Section 6.05. Notices ............................................................................................................................22 Section 6.06. Benefits Exclusive .........................................................................................................23 i Section 6.07. Transfer or Assignment of Agreement ......................................................................23 Section 6.08. Severability ....................................................................................................................23 Section 6.09. Counterparts .................................................................................................................23 Section 6.10. Applicable La~v; Venue; Waiver of Jury Trial ..........................................................24 Section 6.11. No Personal Liability ...................................................................................................24 Exhibit A Form of Advance Request.... Exhibit B Form of Financing Agreement ........... Exhibit C Form of Bond ........................................ Exhibit D Loan Approval Flow Chart ................. Exhibit E Advance Disbursement Flow Chart.. ........................................................................ A-1 ........................................................................ B-1 ........................................................................ C-1 ........................................................................D-1 ........................................................................ E-l ii SPECIAL ASSESSMENT FUNDING AGREEMENT (ENERGY AND SUSTAINABILITY FINANCING PROGRAM) This SPECIAL ASSESSMENT FUNDING AGREEMENT (ENERGY AND SUSTAINABILITY FINANCING PROGRAM) (the "Agreement"), is made and entered into this day of 2014 by and between ST. LUCIE COUNTY SUSTAINABILITY DISTRICT (the "District"), a dependent special district of St. Lucie County (the "County"), INLAND ST. LUCIE PACE, LLC (the "Lender"), and SOLAR AND ENERGY LOAN FUND OF ST. LUCIE COUNTY, INC., a community development financial institution ("SELF"). WITNESETH: WHEREAS, capitalized terms used in these recitals and not otherwise defined shall have the meanings specified in Article I of this Agreement or in the Resolution hereinafter defined; and WHEREAS, pursuant to Chapter 1.25, Part I, Florida Statutes, Ordinance No. 10-025 as codified in Chapter 1-19 of the Code of Ordinances of St. Lucie County, Florida, Section 163.08, Florida Statutes (collectively, the "Act"), and other applicable provisions of law, and County Resolution No. 10-259 (the "Resolution"), the County established the District and the Energy and Sustainability Financing Program which promotes and encourages energy conservation and Sustainability within the County through various means including but not limited to the financing of related improvements through non-ad valorem assessments, sometimes referred to as special assessments; and WHEREAS, the Energy and Sustainability Financing Program, including the authority to impose Special Assessments pursuant to Financing Agreements with Property Owners, was validated by the Final Judgment entered by the Circuit Court of the Nineteenth Judicial Circuit in Case No. 10-CA-5410; and WHEREAS, the District entered into that certain Administration Agreement dated as of July 3, 2012 with SELF, pursuant to which SELF has agreed to administer the Energy and Sustainability Financing Program on behalf of the District; and WHEREAS, in accordance with the Energy and Sustainability Financing Program, the District is authorized to enter into Special Assessment Funding Agreements in order to establish a non-revolving line of credit with which to pay the costs of Qualifying Improvements pursuant to Financing Agreements; and WHEREAS, the Lender is willing to provide such non-revolving line of credit in accordance with the term sheet of the Lender dated February 24, 2014, as negotiated by the parties hereto; and 1 WHEREAS, it is estimated that the Pledged Revenues will be available in amounts sufficient to provide for repayment of Advances, including the payment of interest thereon; and WHEREAS, the Lender is willing to fund Advances upon the terms and conditions set forth in this Agreement. NOW, THEREFORE, the parties hereto agree as follows: ARTICLE I DEFINITION OF TERMS Section 1.01. Definitions. Capitalized terms used in this Agreement and not otherwise defined shall have the respective meanings ascribed thereto in the Resolution or as follows: "Act" shall have the meaning assigned to that term in the recitals hereof. "Advance" means a draw under the non-revolving line of credit contemplated hereunder to pay Program Costs. "Annual Payment Date" means May 1 of each year (unless not a Business Day, in which case the Annual Payment Date shall be the next succeeding Business Day). "Assessed Property" means each parcel of real property subject to a Special Assessment pursuant to a Financing Agreement which is specially benefitted by mitigating burdens described in the Act, through the construction and/or installation of one or more Qualifying Improvements. "Board" means the Board of Supervisors of the District. "Bonds" means the revenue bonds issued by the District to the Lender to evidence the District's obligation to repay each Advance. "Business Day" means any day other than a Saturday, a Sunday, or a day on which the payment office of the Lender is lawfully closed. "Chairman" means the chair of the Board, or in the absence of the chair, the vice-chair. "County Administrator" means the chief administrative officer of the County, or his or her designee. "Disbursement Amount" means the amount disbursed by the Program Administrator to the Vendor to pay in full the cost of providing the Qualifying Improvements. 2 "District Administration Fee" means the one-time fee equal to 2% of the amount financed pursuant to a Financing Agreement which shall be paid to the District from the proceeds of each Advance to compensate the District for administration, collection and staff expenses incurred each year in certifying the annual assessment roll(s) applicable to Financing Agreements entered into hereunder and providing related support services. "Energy and Sustainability Financing Program" means the program established by the County in accordance with the Act and the Resolution pursuant to which the District is authorized to enter into Special Assessment Funding Agreements, to enter into Financing Agreements with Property Owners providing for the funding, financing and repayment of Qualifying Improvements through the levy of Special Assessments, and to pledge the proceeds from the Special Assessments to repayment of Advances made under this Agreement, together with all reasonable and necessary actions or undertakings of any kind necessary or required to implement and administer such program. "Event of Default" means an Event of Default as defined in Section 5.01 of this Agreement. "Financing Agreement" means an agreement between the District and a Property Owner providing for the financing of Qualifying Improvements and the imposition of a Special Assessment against Assessed Property. Each Financing Agreement shall be in substantially the form attached hereto as Exhibit B. "Interest Rate" means the annual rate of interest to be borne on the principal amount of Advances made hereunder as described in Section 3.02 hereof, including the SELF Annual Fee. "Lender" shall mean Inland St. Lucie PACE, LLC, and its successors and assigns. "Loan" means the non-revolving line of credit contemplated hereunder in the aggregate principal amount of up to $1,000,000 granted by the Lender to the District pursuant to and in accordance with this Agreement. "Maturity Date" means September 1, 2016. "Pledged Revenues" means the proceeds of Special Assessments received by the District pursuant to Financing Agreements. "Program Administrator" means SELF, the District's designee for purposes of administering the Energy and Sustainability Financing Program. "Program Costs" means all costs associated with the Energy and Sustainability Financing Program, including but not limited to the provision of funds with which to finance Qualifying Improvements pursuant to Financing Agreements; accounting and legal fees and expenses; the costs associated with energy audits; the fees of fiscal agents, financial advisors, third party 3 administrators, and consultants; administrative expenses; interest on Financing Agreements including the SELF Annual Fee described in Section 3.02 hereof, origination fees imposed by the Lender, administration fees imposed by the District, recording fees, closing costs, and such other expenses as may be necessary or incidental to the Financing Agreements and the Energy and Sustainability Financing Program contemplated herein, and reimbursement to the District for any sums expended for the foregoing purposes in anticipation of execution of Financing Agreements. "Property Owner" means, collectively, all of the record owners of real property subject to a Financing Agreement. "Qualifying Improvement" means the energy conservation and efficiency improvements, renewable energy improvements, wind resistance improvements and eater conservation improvements as described in and authorized by the Act and the Resolution. "Special Assessments" means the non-ad valorem assessments levied pursuant to a Financing Agreement to finance Program Costs funded with Advances under this Agreement. "Tax Collector" means the St. Lucie County Tax Collector. "Vendor" means the contractor engaged by the Property Owner to provide, construct, deliver and install the Qualifying Improvements. Section 1.02. Interpretation. Unless the context clearly requires otherwise, words of masculine gender shall be construed to include correlative words of the feminine and neuter genders and vice versa, and words of the singular number shall be construed to include correlative words of the plural number and vice versa. Any capitalized terms used in this Agreement not herein defined shall have the meaning ascribed to such terms in the Resolution. This Agreement and all the terms and provisions hereof shall be construed to effectuate the purpose set forth herein and to sustain the validity hereof. Section 1.03. Titles and Headings. The titles and headings of the Articles and Sections of this Agreement, which have been inserted for convenience of reference only and are not to be considered a part hereof, shall not in any way modify or restrict any of the terms and provisions hereof, and shall not be considered or given any effect in construing this Agreement or any provision hereof or in ascertaining intent, if any question of intent should arise. [Remainder of Page Intentionally Left Blank] 4 ARTICLE II REPRESENTATIONS AND WARRANTIES OF THE PARTIES Section 2.01. Representations and Warranties of the District. The District represents and warrants as follows: (a) Existence. The District is a dependent special district of St. Lucie County, Florida, duly created by the County and validly existing under the laws of the State of Florida, with full power to enter into this Agreement, to pledge the Special Assessments in the manner and to the extent described herein, to perform its obligations hereunder, including specifically the obligation to reimburse all Advances made hereunder together with interest thereon at the Interest Rate. The making, execution and performance of this Agreement on the part of the District has been duly authorized by all necessary action on the part of the District and will not violate or conflict with the Act or any other provision of law, or any agreement, indenture or other instrument by which the District or any of its material properties is bound. (b) Validity, Etc. This Agreement is a valid and binding obligation of the District enforceable against the District in accordance with its terms, except to the extent that enforceability may be subject to valid bankruptcy, insolvency, financial emergency, reorganization, moratorium or similar laws relating to or from time to time affecting the enforcement of creditors' rights and except to the extent that the availability of certain remedies may be precluded by general principles of equity. (c) Compliance with the Act. The Energy and Sustainability Financing Program complies with the requirements of the Act. Section 2.02. Representations and Warranties of Lender. The Lender represents and warrants as follows: (a) Existence. The Lender has full power to enter into this Agreement, to perform its obligations hereunder and to make the Loan. The performance of this Agreement on the part of the Lender and the making of the Loan have been duly authorized by all necessary action on the part of the Lender and will not violate or conflict with applicable law or any material agreement, indenture or other instrument by which the Lender or any of its material properties is bound. (b) Validity. This Agreement is a valid and binding obligation of the Lender enforceable against the Lender in accordance with its terms, except to the extent that enforceability may be subject to valid bankruptcy, insolvency, financial emergency, reorganization, moratorium or similar laws relating to or from time to time affecting the enforcement of creditors' rights (and specifically creditors' rights as the same relate to banks) 5 and except to the extent that the availability of certain remedies may be precluded by general principles of equity. Section 2.03. Representations and Warranties of SELF. SELF represents and warrants as follo~~s: (a) Existence. SELF is a community development financial institution with full po~~er to enter into this Agreement, to perform its obligations hereunder and to act as Program Administrator. The performance of this Agreement on the part of SELF have been duly authorized by all necessary action on the part of SELF and will not violate or conflict with applicable law or any material agreement, indenture or other instrument by which SELF or any of its material properties is bound. (b) Validity. This Agreement is a valid and binding obligation of SELF enforceable against SELF in accordance with its terms, except to the extent that enforceability may be subject to valid bankruptcy, insolvency, financial emergency, reorganization, moratorium or similar laws relating to or from time to time affecting the enforcement of creditors' rights and except to the extent that the availability of certain remedies may be precluded by general principles of equity. (c) Compliance with the Act. The Energy and Sustainability Financing Program complies with the requirements of the Act. (d) Errors and Omissions Insurance. SELF shall obtain and maintain an errors and omissions insurance policy with coverage amounts of $1,000,000 through the Maturity Date. SELF shall direct its insurer to notify Lender of any lapse or within 30 days of each renewal/expiration date. Additionally, the Lender shall be named as an additional insured on the errors and omissions insurance policy. Section 2.04. Program Administrator; Approvals. Applications for financing of Qualifying Improvements will be processed for approval in accordance with this section and generally as described in the procedural flow chart included in Exhibit D attached hereto. The parties ackno~~ledge that the flow chart is conceptual, is included herein for example purposes only to illustrate how the approval process may unfold, and that deviations from or revisions to the flow chart may be necessary or desirable as actual Advances are approved and funded hereunder. (a) The District has engaged SELF to act as Program Administrator to administer the Energy and Sustainability Financing Program. The Program Administrator shall pre-screen applications for financing of Qualified Improvements in accordance with the approval criteria set forth below. The Lender will give final approval in writing to all applications including final loan terms, closing documentation and energy audits, as applicable, following which the Program Administrator will provide the Vendor with notice to proceed with construction of the 6 Qualifying Improvements. The Lender shall also give final approval to each Financing Agreement. (b) Contractors. The Lender will receive apre-approved contractor list from the Program Administrator. All contractors must be properly licensed, insured and qualified in order to perform work funded through an Advance provided by the Lender. No contractor shall be an affiliate, principal, executive, or employee of SELF. In the event that a member of the Board of Directors of SELF appears on the pre-approved contractor list, then (i) such board member shall disclose to the board the affiliate relationship(s) giving rise to the conflict of interest before any decisions are made that could benefit such member, (ii) the member shall abstain from casting any vote that could benefit them personally, and (iii) the pre-approved contractor list shall disclose any affiliate relationships. (c) Approval Criteria for Applications. The following criteria shall be utilized in determining whether an application for financing of Qualifying Improvements shall be approved by the Lender: (1) All property taxes and any other assessments levied on the same bill as property taxes for the Assessed Property are paid and have not been delinquent for the preceding 3 years or the Property Owner's period of ownership, whichever is less. (2) There are no involuntary liens, including, but not limited to, construction liens on the Assessed Property. (3) No notices of default or other evidence of property-based debt delinquency have been recorded during the preceding 3 years or the Property Owner's period of ownership, whichever is less. (4) The Property Owner is current on all mortgage debt on the Assessed Property and no notices of default or foreclosure due to non-payment of property taxes or mortgage loan payments within the preceding 3 years. (5) The Qualifying Improvement(s) proposed for funding shall be affixed to a building, facility or structure that is located upon and part of the Assessed Property and shall constitute an improvement to the Assessed Property. (6) Qualifying Improvements shall not be financed hereunder for buildings or facilities under new construction or construction for which a certificate of occupancy or similar evidence of substantial completion of new construction or improvement has not been issued. (7) Written consent of the holders or loan servicers of any mortgage encumbering or otherwise secured by the Assessed Property regarding execution of the Financing Agreement by the Property Owner, including an acknowledgement that upon recordation of the Financing 7 Agreement, the entire balance of the Special Assessment (including interest thereon) shall constitute a legal, valid and binding non-ad valorem assessment and a resulting lien upon the Assessed Property, equal in rank and dignity with the lien of all state, county, district and municipal taxes and superior in dignity to all other liens, titles and claims, until paid. (8) Qualifying Improvements may only be financed hereunder for non-residential and multi-family parcels, and parcels owned by non-profit entities. (9) The Assessed Property must be located in St. Lucie County, Florida. (10) The Property O~~ner must have fee simple title to the Assessed Property. (11) An energy audit demonstrating that the annual energy savings from the Qualified Improvement will equal or exceed the annual repayment amount of the Special Assessment; provided, however, that energy audits shall not be required for Qualifying Improvements consisting of wind resistance, water conservation or lighting retrofit improvements. (12) The just value of the Assessed Property must exceed the sum of all privately- held mortgages or encumbrances attached to the Assessed Property, if any. (13) The Property Owner must not have been subject to bankruptcy proceedings during the prior three (3) years. (14) The Assessed Property is not the subject of a pending or imminent eminent domain action, environmental litigation or other cause of action affecting the value of the Assessed Property, excluding actions initiated by the Property Owner regarding the value attributed to the Assessed Property by the Property Appraiser for purposes of ad valorem taxation. (15) There are no judgments against the Property Owner ~~hich could result in a lien against the Assessed Property. ARTICLE III ADVANCES Section 3.01. The Line of Credit; Purpose and Use. On the date of this Agreement, the Lender shall make available to the District the Loan in the aggregate principal amount of up to One Million Dollars ($1,000,000). The proceeds of Advances made as part of the Loan from time to time shall be used solely to fund Program Costs financed pursuant to Financing Agreements. 8 From the date hereof until the Maturity Date, or such future date to which the Maturity Date of the Loan may be extended (any such extension to be at the Lender's sole discretion and evidenced by a writing executed by the Lender), subject to the terms and conditions of this Agreement, and so long as there exists no Event of Default as defined in Section 5.01 hereof, the Lender agrees to extend to the District anon-revolving line of credit in an amount not to exceed One Million Dollars ($1,000,000) for purposes of financing Program Costs financed pursuant to Financing Agreements. In no event shall the aggregate sum of all principal advances made by the Lender to the District hereunder exceed the sum of $1,000,000 unless approved in advance by the Lender. Section 3.02. The Loan. The general terms of the Loan shall be as follo~~s: (a) Bonds. Each advance shall be accompanied by a Bond in substantially the form attached hereto as Exhibit C. (b) Amount of Loan. The Loan shall have a maximum principal amount of up to One Million Dollars ($1,000,000). (c) Interest. Each Advance shall correspond to a Financing Agreement. The Interest Rate applicable to each Advance (and each Financing Agreement) to be paid to Lender shall be a function of the term of the corresponding Financing Agreement, in accordance with the following table: Term of Financing Agreement Base Interest Rate 5 ears 4.50% + 5 ear treasur rate 10 years 4.50% + 10 year treasury rate 15 ears 4.50% + inter olated 15 ear treasur rate 20 years 4.50% + interpolated 20 year treasury rate (i) SELF will receive a 0.75% interest rate that will be added to the Interest Rate payable to Lender described above which will be a servicing fee (the "SELF Annual Fee") that will continue through the term of the Financing Agreement. Payment of the SELF Annual Fee is subordinate to Lender's receipt of interest. (ii) Interest on Financing Agreements shall begin to accrue thirty (30) days after the effective date thereof on a 30/360 day count basis. (iii) Notwithstanding anything herein to the contrary, the total rate of interest applicable to the Loan, Advances, and/or Financing Agreements shall never exceed the maximum rate authorized by law. 9 (d) Principal. The principal amount of each Financing Agreement shall amortize over the term thereof and shall be paid, together with interest as specified above, by the earlier of (i) thirty (30) days after receipt by the District of the proceeds of Special Assessments pursuant to a Financing Agreement, or (ii) the Annual Payment Date. On such date, the District shall forward proceeds of the Special Assessment (minus the SELF Annual Fee and any fees imposed by the Tax Collector as contemplated by Section 4.02 hereof) to the Lender for payment of the debt obligation evidenced by the applicable Financing Agreement(s); provided, however, that payment by the District to the Lender is subject in all cases to actual receipt of Special Assessment(s) by the District. The District shall make such payments by check mailed to the Lender at the address designated in writing by the Lender for purposes of payment or by bank wire or bank transfer as Lender may specify in writing to the District or otherwise as the District and the Lender may agree. The parties hereto acknowledge that some property owners may elect to pay annual ad valorem taxes and non-ad valorem assessments (including Special Assessments) on a quarterly installment basis, as authorized by Section 197.222, Florida Statutes. Any such installment payments received by the District shall be remitted to the Lender within thirty (30) days of receipt for payment of the amounts due under the respective Financing Agreement. (e) Origination Fee. Each Advance shall be subject to a 1% origination fee due to Lender upon payment of the Advance. Such fee shall be included in the principal amount of each Financing Agreement. (f) Program Administration Fee. Each Advance shall be subject to a 4.5% program administration fee due to SELF upon payment of the Advance. Such fee shall be included in the principal amount of each Financing Agreement and shall consist of three components: (i) 2% origination fee for origination and processing of application to pre- approval that will be submitted to Lender for final approval; and (ii) 2% project management fee for overseeing and managing the construction and/or installation of Qualifying Improvements from start to finish; and (iii) 0.5% for deposit into a "Business Development Fund" to be established and maintained as a trust fund by SELF from which SELF may pay third party referral fees, marketing expenses and other costs associated with developing the Energy and Sustainability Financing Program. An affiliate of Lender, or any other third party, will have the right to refer applicants for Financing Agreements in St. Lucie County to the Program Administrator (subject to program guidelines administered by the Program Administrator) for a referral fee that will be paid for by the Program Administrator from the Business Development Fund; provided, however, that the referral fee shall not exceed .5% of the principal amount of the Financing Agreement for which the referral was made. 10 (g) Capitalized Interest. Each Financing Agreement may include a capitalized interest component which shall be described in the Financing Agreement. Capitalized interest, if any, shall accrue at the rate of interest applicable to the respective Financing Agreement; provided, however, that such rate shall not include the SELF Annual Fee. Capitalized interest shall be determined as follows: (i) For Financing Agreements entered into anytime on or after May 1 of a given calendar year through August 15 of the same calendar year, there shall be no capitalized interest. (ii) For Financing Agreements entered into anytime after August 15 of a given calendar year, capitalized interest shall apply for the period between execution of the Financing Agreement and the immediately following April 30. (h) Security. Each Financing Agreement shall be secured solely by the Special Assessments imposed in accordance therewith, and such Special Assessments are hereby pledged to repayment of the Loan. The parties hereto acknowledge that the Special Assessments shall be collected on the annual property tax bill by the St. Lucie County Tax Collector in accordance with the Act, pursuant to which the Tax Collector assumes collection and enforcement responsibility through the tax certificate/tax deed process described in Chapter 197, Florida Statutes. The lien of the Special Assessments against Assessed Property shall be in the name of the District; provided, however, that, to the extent allowed by law, the lien against Assessed Property shall be assigned to the Lender at Lender's request for purposes of enforcing payment of delinquent Special Assessments through foreclosure or any other enforcement mechanism authorized by law. (i) Advances under the Loan. On or before the Maturity Date, the Loan may be drawn upon in multiple Advances under the following terms: (i) each Advance must be requested by the District through an advance request (an "Advance Request") in writing and executed by the County Administrator, from the Lender, no later than five (5) Business Days prior to such Advance, in substantially the form attached hereto as Exhibit A; (ii) each Advance Request must indicate which Financing Agreement it pertains to; (iii) No Advance Request will be presented to the Lender prior to the applicable Financing Agreement(s) being approved and executed; 11 (iv) each Advance Request must state that the District remains in full compliance with the terms of this Agreement, that no Event of Default currently exists and that no Event of Default would exist with the passage of time or the giving of notice; (v) no Advance Request shall be honored after the occurrence of an Event of Default; (vi) the conditions set forth in Section 3.04 of this Agreement must have been satisfied prior to the first Advance; (vii) the Advance must be for Program Costs; (viii) Advances shall be funded within three (3) Business Days of the Lender's final approval of a Financing Agreement and the recordation of such Financing Agreement or a summary memorandum thereof; and (ix) The minimum cost per project to be financed through a Financing Agreement, and therefore the minimum Advance, is $50,000 including all Program Costs applicable to such project and Financing Agreement. The Lender may, in its sole discretion, fund Advances below $50,000, provided two or more such Advances which in the aggregate equal or exceed $50,000 are funded simultaneously. (j) Prepayments. The amounts due and owing under each Financing Agreement may be prepaid prior to their respective maturities, in whole, on any date; provided, however, that the prepayment amount shall include all outstanding principal and interest accrued thereon together with a prepayment penalty of 5% of the outstanding principal balance payable to Lender. (k) Presentment. For so long as the Bonds are held by the Lender, the District agrees that all amounts payable to the Lender thereunder shall be made to the Lender without any presentment thereof, except upon payment of the final installment of principal, and without any notation of such payment being made thereon. (1) Records. The Program Administrator shall maintain accurate records of each Advance, Financing Agreement, prepayment of Special Assessments, and annual Special Assessment receipts including the allocation thereof among principal and interest components, capitalized interest, if any, and the SELF Annual Fee. Such records shall be maintained in a written report (which may be in electronic format) and available to any party hereto upon request. Section 3.04. Conditions Precedent to Advances. 12 (a) Conditions Precedent to All Advances. The Lender shall approve all applications for financing of Qualifying Improvements and all Financing Agreements prior to funding an Advance. In addition, there shall be filed with Lender the following, each in form and substance reasonably acceptable to the Lender, prior to funding an Advance. (i) An executed Bond in the amount of the Advance; (ii) Copies of permits necessary for construction or installation of the Qualifying Improvements; (iii) Copies of invoices pertaining to the Qualifying Improvements; (iv) Waivers of any mechanic's liens pertaining to the Qualifying Improvements; (v) A certification from the Program Administrator that the Advance complies with the Act; (vi) A list of all costs associated with a particular Financing Agreement; (vii) Written consent of the holders or loan servicers of any mortgage encumbering or otherwise secured by the Assessed Property regarding execution of the Financing Agreement by the Property Owner, including an acknowledgement that upon recordation of the Financing Agreement, the entire balance of the Special Assessment (including interest thereon) shall constitute a legal, valid and binding non-ad valorem assessment and a resulting lien upon the Assessed Property, equal in rank and dignity with the lien of all state, county, district and municipal taxes and superior in dignity to all other liens, titles and claims, until paid; and (viii) Executed Financing Agreement and proof of recording thereof within five (5) days of execution consistent ~~ith section 163.08(8), Florida Statutes. (b) Conditions Precedent to Initial Advance. Prior to or simultaneously with the delivery of the Advance Request hereunder by the District in connection with the initial Advance, there shall be filed with the Lender the following, each in form and substance reasonably acceptable to the Lender: (i) An opinion of counsel to the District to the effect that: 13 (1) this Agreement has been duly authorized, executed and delivered by the District and constitutes a valid, binding and enforceable agreement of the District in accordance with its terms, except to the extent that the enforceability of the rights and remedies set forth herein may be limited by bankruptcy, insolvency, financial emergency or other laws affecting creditors' rights generally or by usual equity principles; (2) the District's execution, delivery and performance of this Agreement is not subject to any authorization, consent, approval or review of any governmental body, public officer or regulatory authority not heretofore obtained or effected, and no taxes are payable in connection therewith; (3) the District (A) is a dependent special district created by St. Lucie County, and (B) has power and authority to execute and deliver this Agreement and to consummate the transactions contemplated by such instrument; (4) the execution, delivery and performance of this Agreement, and compliance with the terms hereof, under the circumstances contemplated hereby, do not and will not in any material respect conflict with, or constitute on the part of the District a breach or default under, any indenture, mortgage, deed of trust, agreement or other instrument to which the District or to which its properties are subject or conflict with, violate or result in a breach of any existing law, administrative rule or regulation, judgment, court order or consent decree to which the District or its properties are subject; (5) to the best of such counsel's knowledge, there is no claim, action, suit, proceeding, inquiry, investigation, litigation or other proceeding, at law or in equity, pending or threatened in any court or other tribunal, state or federal (W) restraining or enjoining, or seeking to restrain or enjoin, the issuance, sale, execution or delivery of this Agreement, (X) in any way questioning or affecting the validity or enforceability of any provision of this Agreement, (Y) in any way questioning or affecting the validity of any of the proceedings or authority for the authorization, execution or delivery of this Agreement, or of any provision made or authorized for the payment thereof, or (Z) questioning or affecting the organization or existence of the District or the right of any of its officers to their respective offices; and 14 (6) all conditions contained in the Act and The Resolution precedent to the issuance of this Agreement have been complied with; and (ii) Such other documents as the Lender reasonably may request. Section 3.05. Application of Advances. The process for disbursement of Advances is generally described in the procedural flow chart included in Exhibit E attached hereto. The parties acknowledge that the flow chart is conceptual, is included herein for example purposes only to illustrate how the disbursement process may unfold, and that deviations from or revisions to the flow chart may be necessary or desirable as actual Advances are approved and funded hereunder. At the time of delivery of each Advance herein authorized, proceeds thereof shall be used solely to fund Program Costs and shall be disbursed as follows: (a) The origination fee contemplated by Section 3.02(e) hereof shall be retained by the Lender. (b) The balance of the Advance shall be deposited into an account specified by the District and disbursed by the District as follows: (1) The program administration fee contemplated by Section 3.02(f) hereof shall be disbursed to the Program Administrator. (2) The District Administration Fee shall be disbursed to the County Administrator. (3) Capitalized interest associated with the Advance, if any, shall be retained by the District and paid to the Lender on the immediately following Annual Payment Date. (4) The balance of the Advance shall be forwarded to the Program Administrator for application as follows: (i) The Program Administrator shall pay or reimburse all recording fees and any other fees associated with recording the Financing Agreement. (ii) The Program Administrator shall reimburse the Property Owner for expenses associated with an energy audit, if any, if such reimbursement was approved in advance by the Program Administrator. (iii) The Program Administrator shall pay the Disbursement Amount directly to the Vendor; provided, however, that amounts disbursed to the 15 Vendor shall not exceed the maximum guaranty amount provided by the Vendor and approved by the Lender during the financing application. (c) The parties hereto acknowledge that the Lender anticipates that construction or installation of Qualifying Improvements shall be completed prior to payment of the Disbursement Amount to the Vendor. Accordingly, prior to payment of the Disbursement Amount to the Vendor, there shall be filed ~~ith the Lender a certificate of completion from the Vendor. The certificate of completion shall be in a form and substance reasonably acceptable to Lender. (d) In the sole discretion of the Lender, and if approved in advance by the Lender in writing, proceeds of an Advance may be disbursed to the Vendor prior to completion of the Qualifying Improvements pursuant to prudent construction lending practices; provided, ho~~ever, that the Vendor must provide a maximum guaranty for work performed. Interest shall accrue on the full loan amount as provided in the corresponding Financing Agreement. In order to make such partial payments to the Vendor, verification by the Program Administrator of partial completion will be necessary. Partial payments will be subject to the consent of the Lender as to the frequency and amount of the partial payment. [Remainder of page intentionally left blank) 16 ARTICLE IV COVENANTS OF THE DISTRICT Section 4.01. Performance of Covenants. The District covenants that it will perform faithfully at all times its covenants, undertakings and agreements contained in this Agreement or in any proceedings of the District relating to the Loan. Section 4.02. Payment of Loan. (a) The District covenants that it will promptly pay the principal of and interest on the Loan at the place, on the dates and in the manner provided herein, in accordance with the terms hereof. (b) The Loan will be a special obligation of the District secured solely by the Pledged Revenues, and is payable solely from the Pledged Revenues, in the manner and to the extent described herein. The Loan will not constitute a general debt, liability or obligation of the District or the State of Florida or any political subdivision thereof within the meaning of any constitutional or statutory provision. Neither the faith and credit nor the taxing power of the District or of the State of Florida or any political subdivision thereof is pledged to the payment of the principal of or interest on the Loan and the Lender shall never have the right to compel any exercise of any ad valorem taxing power of the District or of the State of Florida or any political subdivision thereof, directly or indirectly to enforce such payment. The Loan shall not constitute a lien upon any property of the District except upon the Pledged Revenues in the manner and to the extent described herein. (c) The parties hereto acknowledge that the Special Assessments shall be collected and enforced in accordance with the Act and the "Uniform Collection Method" set forth in Section 197.3632, Florida Statutes, pursuant to which non-ad valorem assessments may be collected on the annual property tax bill administered by the Tax Collector. The annual amount of the Special Assessment may be increased by up to 2% for purposes of reimbursing the Tax Collector for administrative costs incurred in collecting and processing the Special Assessments pursuant to such method, as required by Section 197.3632(2), Florida Statutes. The District covenants to enforce collection of the Special Assessments through any means authorized by law including but not limited to the tax certificate process authorized by Chapter 197, Florida Statutes and administered by the Tax Collector, and/or Chapter 173, Florida Statutes. Nothing herein shall be construed to prohibit the Lender from purchasing tax certificates associated with real property subject to a Financing Agreement. In the event a tax certificate associated with Assessed Property is struck to the county within the meaning of section 197.432, Florida Statutes, then, to the extent allowed by law, the District shall take such actions as may be necessary to assign its rights of enforcement and collection against such Assessed Property to the Lender such that Lender may directly enforce payment by removing that property from the assessment roll and/or instituting foreclosure proceedings, or by any other 17 method authorized by law. The proceeds of default rates of interest and/or late payment penalties, if any, arising from delinquent Special Assessments shall be shared equally by the District and the Lender. (d) If through mistake or inadvertence a Special Assessment is omitted from the annual assessment roll(s) certified to the Tax collector for collection pursuant to Section 197.3632, Florida Statutes, then the District shall provide for direct billing of the amount due for that annual collection cycle. (e) Upon execution hereof, the District ~~ill establish an account through the County's finance department to be known as the "Special Assessment Funding Agreement Account" (the "Assessment Account"). The District ti~ill provide for deposit of the Special Assessment proceeds, minus the SELF Annual Fee and such fees as are necessary to reimburse the Tax Collector in accordance with paragraph (c) above, into the Assessment Account upon receipt. The Assessment Account shall constitute a trust fund for the benefit of the Lender. Such account shall be continuously secured in the same manner as municipal deposits of funds are required to be secured by the laws of the State of Florida. Section 4.03. Compliance with Laws and Regulations. The District shall maintain compliance with all federal, state and local laws and regulations regarding the Energy and Sustainability Financing Program. Section 4.04. Compliance with Section 215.84, Florida Statutes. The District represents, warrants, and covenants that the Interest Rate, as currently calculated in accordance with Section 215.84, Florida Statutes, is in compliance with Section 215.84, Florida Statutes. Section 4.05. Issuance of Other Debt. Through the Maturity Date, the District is not permitted to incur indebtedness secured by the Pledged Revenues other than the Loan or to pledge the Pledged Revenues to any other debt obligation of the District, without the prior written consent of the Lender. [Remainder of page intentionally left blank] 18 ARTICLE V EVENTS OF DEFAULT AND REMEDIES Section 5.01. Events of Default. The following shall constitute Events of Default: (a) If the District fails to make any payment of principal or interest under this Special Assessment Funding Agreement as the same becomes due and payable; (b) If the District defaults in the performance or observance of any covenant or agreement contained in this Special Assessment Funding Agreement (other than as set forth in (a) above) and fails to cure the same within thirty (30) days; (c) If the District shall be subject to a determination of financial emergency as provided for in Part V, Chapter 218, Florida Statutes; or (d) The filing of a petition by or against the District relating to bankruptcy, reorganization, arrangement or readjustment of debt of the District or for any other relief relating to the District under the United States Bankruptcy Code, as amended, or any other insolvency act or law now or hereafter existing, or the involuntary appointment of a receiver or trustee for the District, and the continuance of any such event for 90 days undismissed or undischarged. The District agrees that upon continuance of any such event for 90 days undismissed or undischarged, or if the District is unable for any reason to enforce collection of any Special Assessment, then the District shall, to the extent allowed by law, take such actions as may be necessary to assign its rights of enforcement and collection against Assessed Property to the Lender. Section 5.02. Remedies. Upon the occurrence and during the continuation of any Event of Default, the Lender may, in addition to any other remedies set forth herein or in the Resolution, either at law or in equity, by suit, action, mandamus or other proceeding in any court of competent jurisdiction, protect and enforce any and all rights under the laws of the State of Florida, or granted or contained herein or in the Resolution, and may enforce and compel the performance of all duties required herein or by the Resolution, or by any applicable statutes to be performed by the District or by any officer thereof. Section 5.03. Remedies Not Exclusive. No remedy herein conferred upon or reserved to the Lender is intended to be exclusive of any other remedy or remedies herein provided, and each and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder. Section 5.04. Waivers, Etc. No delay or omission of the Lender to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver of any such default or any acquiescence therein; and every power and remedy given by this Agreement to the Lender may be exercised from time to time and as often as may be deemed expedient. 19 The Lender may waive any default which, in its opinion, shall have been remedied before the entry of final judgment or decree in any suit, action or proceeding instituted by it under the provisions of this Agreement or before the completion of the enforcement of any other remedy under this Agreement, but no such waiver shall be effective unless in writing and no such waiver shall extend to or affect any other existing or any subsequent default or defaults or impair any rights or remedies consequent thereon. [Remainder of page intentionally left blank] 20 ARTICLE VI MISCELLANEOUS PROVISIONS Section 6.01. Covenants of District; Successors. (a) All of the covenants, stipulations, obligations and agreements contained in this Agreement shall be deemed to be covenants, stipulations, obligations and agreements of the District to the full extent authorized or permitted by law, and all such covenants, stipulations, obligations and agreements shall be binding upon the successor or successors thereof from time to time, and upon any officer, board, commission, authority, agency or instrumentality to ~~hom or to which any power or duty affecting such covenants, stipulations, obligations and agreements shall be transferred by or in accordance with law. (b) The District covenants that the District (or a third party administrator selected by the District if approved in writing, in advance, by the Lender) will succeed SELF as Program Administrator and will assume the rights, responsibilities and obligations contemplated for the Program Administrator hereunder, if: (i) SELF withdraws, voluntarily or involuntarily, from its role as Program Administrator; (ii) The filing of a petition by or against SELF relating to bankruptcy, reorganization, arrangement or readjustment of debt of SELF or for any other relief relating to SELF under the United States Bankruptcy Code, as amended, or any other insolvency act or law now or hereafter existing, or the involuntary appointment of a receiver or trustee for SELF, and the continuance of any such event for 90 days undismissed or undischarged; or (iii) There is any occurrence of fraudulent, unlawful, grossly negligent, dishonest or willful misconduct of SELF or any officer or director of SELF. (c) Upon the occurrence of any event set forth in Section 6.OI (b)(i) through (iii) (each an "Event") and/or if the District or a third party administrator selected by the District succeeds SELF as Program Administrator, then the Lender may, in its sole discretion, discontinue the funding of Advances hereunder by providing written notice of its intent to discontinue funding to the District. If such written notice indicates the Lender's intent to permanently discontinue funding Advances, or if funding is discontinued follo~n~ing an Event for more than sixty (60) days then the exclusivity provisions set forth in Section 6.02 below shall no longer apply. Notwithstanding the foregoing, if the Lender has discontinued funding following an Event for more than sixty (60) days and (1) all the other parties are not ready, willing and able to perform, or (2) the Event has not been resolved to Lender's reasonable satisfaction, then the exclusivity provisions set forth in Section 6.02 shall continue to apply. The Lender's determination to discontinue funding under this section shall not affect any Financing 21 Agreements then recorded or any then-pending applications for the financing of Qualifying Improvements. Section 6.02. Term of Agreement; Exclusivity. This Agreement shall be in full force and effect from the date hereof through the Maturity Date. The Lender shall have the exclusive right to fund all Financing Agreements entered into between the District and Property Owners for the financing of Qualifying Improvements constructed or installed in St. Lucie County from the date hereof through the Maturity Date, including any extension of the Maturity Date requested by the District and granted by the Lender. Any such extension shall be approved in writing by the Lender. Section 6.03. Notice of Changes in Fact. Promptly after the District becomes aware of the same, the District will notify the Lender of any default under this Agreement, specifying in each case the nature thereof and what action the District has taken, is taking and/or proposes to take with respect thereto. Section 6.04. Amendments and Supplements. This Agreement may be amended or supplemented from time to time only by a writing duly executed by each of the parties hereto. Section 6.05. Notices. Any notice, demand, direction, request or other instrument authorized or required by this Agreement to be given to or filed with the District or the Lender, shall be deemed to have been sufficiently given or filed for all purposes of this Agreement if and when sent by certified mail, return receipt requested: (a) To District: St. Lucie County Sustainability District Attn: County Administrator 2300 Virginia Avenue Ft. Pierce, Florida 34982 With a copy to: County Attorney 2300 Virginia Avenue Ft. Pierce, Florida 34982 (b) To SELF: Solar Energy Loan Fund of St. Lucie County, Inc. 2400 Rhode Island Avenue (P.O. Box 5506) Fort Pierce, Florida 34950 (34954) 22 (c) To Lender: Inland St. Lucie PACE, LLC 2907 Butterfield Road Oak Brook, Illinois 60523 Attn: Art Rendak With a copy to: The Inland Real Estate Group, Inc. 2901 Butterfield Road Oak Brook, Illinois 60523 Attn: General Counsel Any party may, by notice sent to the other parties, designate a different or additional address to which notices under this Agreement are to be sent. Section 6.06. Benefits Exclusive. Except as herein otherwise provided, nothing in this Agreement, expressed or implied, is intended or shall be construed to confer upon any person, firm or corporation, other than the District, SELF and the Lender, any right, remedy or claim, legal or equitable, under or by reason of this Agreement or any provision hereof, this Agreement and all its provisions being intended to be and being for the sole and exclusive benefit of the District, SELF and the Lender. Section 6.07. Transfer or Assignment of Agreement. This Agreement may not be transferred or assigned without the express written consent of the District. Section 6.08. Severability. In case any one or more of the provisions of this Agreement, any amendment or supplement hereto shall for any reason be held to be illegal or invalid, such illegality or invalidity shall not affect any other provision of this Agreement, any amendment or supplement hereto, but this Agreement, any amendment or supplement hereto shall be construed and enforced at the time as if such illegal or invalid provisions had not been contained therein, nor shall such illegality or invalidity or any application thereof affect any legal and valid application thereof from time to time. In case any covenant, stipulation, obligation or agreement contained in this Agreement shall for any reason be held to be in violation of law, then such covenant, stipulation, obligation, or agreement shall be deemed to be the covenant, stipulation, obligation or agreement of the District to the full extent from time to time permitted by law. Section 6.09. Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed and delivered, shall be an original; but such counterparts shall together constitute but one and the same Agreement, and, in making proof of this Agreement, it shall not be necessary to produce or account for more than one such counterpart. 23 Section 6.10. Applicable Law; Venue; Waiver of Jury Trial. This Agreement shall be governed exclusively by and construed in accordance with the applicable laws of the State of Florida. The exclusive venue of any legal or equitable action that arises out of or relates to this Agreement shall lie in State Court in St. Lucie County, Florida. In any action, the parties waive any right to jury trial. Section 6.11. No Personal Liability. Notwithstanding anything to the contrary contained herein, or in any other instrument or document executed by or on behalf of the District or SELF in connection herewith, no stipulation, covenant, agreement or obligation of any present or future member of the District Board of Supervisors, the County Board of County Commissioners, SELF, the Lender, employees or agents thereof, employees or agents of successors thereto, in any such person's individual capacity, and no such person, in his or her individual capacity, shall be liable personally for any breach or non-observance of or for any failure to perform, fulfill or comply with any such stipulations, covenants, agreements or obligations, nor shall any recourse be had for the payment of the principal of or interest on the Loan or for any claim based thereon or on any such stipulation, covenant, agreement or obligation, against any such person, in his or her individual capacity, either directly or through the District, the County, SELF or the Lender, under any rule or law or equity, statute or constitution or by the enforcement of any assessment or penalty or otherwise and all such liability of any such person, in his or her individual capacity, is hereby expressly waived and released. [Remainder of page intentionally left blank] 24 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date first set forth herein. (SEAL) ST. LUCIE COUNTY SUSTAINABILITY DISTRICT By: Chair ATTEST: Approved as to Form: Deputy Clerk County Attorney SOLAR AND ENERGY LOAN FUND OF ST. LUCIE COUNTY, INC. By: Name: Title: INLAND ST. LUCIE PACE, LLC sy: Name: Title: 25 EXHIBIT A FORM OF ADVANCE REQUEST [Lender and address] The St. Lucie County Sustainability District (the "District") does hereby request the following Advance Request made pursuant to the Special Assessment Funding Agreement (Energy and Sustainability Financing Program) by and between the District, Solar and Energy Loan Fund, and (the "Lender") dated , 20] 4 (the "Agreement"). 1. This advance shall be designated as the "Special Assessment Funding Agreement (Energy and Sustainability Financing Program) -Draw for Financing Agreement No. _." 2. The principal amount of this advance shall be $ and the advance date shall be , 20 The amount of the advance is determined as follows: Recording Fees: Program Administrator Fee: District Administration Fee: Origination Fee: Capitalized Interest: Reimbursement of energy audit expense to owner: Disbursement Amount Paid to Vendor: Total: $ 3. The wire instructions for the transfer are as follows: [To Come] 4. The District ~~arrants and represents that (a) it remains in full compliance with the terms of the Agreement and the agreements which are incorporated therein by reference, (b) that no Event of Default under the Agreement currently exists, and (c) that no Event of Default would exist ~~ith the passage of time or the giving of notice. 4. Following this advance, the remaining principal amount of advances the District may draw upon pursuant to the requirements of the Agreement is $ A-1 Dated , 20_ ST. LUCIE COUNTY SUSTAINABILITY DISTRICT By:_ Name: Title: A-2 Financing Agreement No. Prepared By and after Recording Return to: FINANCING AGREEMENT This Financing Agreement (the "Agreement") is made and entered into on 20J by and between the ST. LUCIE COUNTY SUSTAINABILITY DISTRICT (the "District"), a dependent special district established by St. Lucie County, Florida, and [OWNER(S)] ([collectively,] the "Owner"). RECITALS WHEREAS, pursuant to Ordinance No. 10-025 (as codified in Chapter 1-19 of the Code of Ordinances of St. Lucie County, the "sustainability Ordinance") and Resolution No. 10-259 (as may be amended from time to time, the "Resolution") and Section 163.08, Florida Statutes (the "Act"), St. Lucie County, Florida (the "County") established the District for purposes of accomplishing energy efficiency and renewable energy improvements through an energy financing program providing for the levy of non-ad valorem assessments against real property, with the consent of the owners of such property, to finance the acquisition and construction of energy conservation, energy efficiency and reneti~able energy improvements and sustainability improvements (the "Program"); and WHEREAS, Owner is the owner of that certain real property described in Appendix A attached hereto (the "Assessed Property"); and WHEREAS, Owner wishes to participate in the Program by entering into this Agreement with the District, thereby providing for the acquisition, construction, installation and financing of the improvements described in Appendix B hereto which will provide a special benefit to the Assessed Property (the "Improvements"); and WHEREAS, the District has determined that the Improvements are energy efficient improvements, renewable energy improvements or broader sustainability improvements as those terms are defined in Section 1-1.9.10 of the sustainability Ordinance, and/or "qualifying improvements" within the meaning of the Act. 1 NOW THEREFORE, in consideration of the mutual covenants contained herein and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: SECTION 1. INCORPORATION OF RECITALS AND APPENDICES. The recitals stated above are true and correct and, together ~~ith the appendices attached hereto, are incorporated herein as a material part of this Agreement. SECTION 2. DEFINITIONS. Capitalized terms not otherti~ise defined herein shall have the meanings set forth in the Resolution. As used in this Agreement, the following terms shall have the following meanings. "Administration Cost" means the cost incurred by the District in administering the Program and the Special Assessment contemplated hereunder, including but not limited to origination fees, Program Administrator fees, and any costs associated with recording of this Agreement or a summary memorandum in the public records of St. Lucie County, Florida, in the amount set forth in Appendix C. "Annual Payment" means the annual installment of the Special Assessment levied hereunder which is due in any given Tax Year, including interest. "Bondholder" means the beneficial oti~ner of any bonds or other debt obligations issued by the District for purposes of financing the Improvements. "Business Day" means any day the County is open for business. "Collection Costs" means the annual costs associated ~~ith collection of Annual Payments on the property tax bill, which costs may include administrative expenses incurred by the District, fees imposed by the St. Lucie County property appraiser and tax collector pursuant to Section 797.3632, Florida Statutes, and such amount as necessary to account for the maximum statutory discount for early payment of ad valorem taxes and non-ad valorem assessments, if any. "Contract Administrator" means the County Administrator or designee thereof. "Disbursement Amount" means the cost of the Improvements to be disbursed to the Vendor, as evidenced by the binding written invoice provided by the Vendor, a copy of which has been received by the District. "Program Administrator" means the Solar Energy and Loan Fund of St. Lucie County, Inc. 2 "Vendor" means the contractor engaged by the Owner to provide, construct, deliver and install the Improvements. "Special Assessment" means the non-ad valorem assessment levied by the District hereunder against the Assessed Property pursuant to the Act and collected pursuant to Section 197.3632, Florida Statutes, as more particularly described in Section 6 hereof. "Tax Year" means the period from January 1st through the following December 31st. SECTION 3. SPECIAL ASSESSMENT AND LIEN. (A) Owner agrees that upon recordation of this Agreement, the Assessed Property shall be subject to a Special Assessment levied by the District in the principal amount of $ , as shown in Appendix C. (B) Owner hereby expressly consents to the imposition of the Special Assessment against the Assessed Property in order to finance the Improvements. (C) Upon execution, the District will cause this Agreement or a summary memorandum to be recorded in the public records of St. Lucie County, Florida. (D) Upon recordation, the entire balance of the Special Assessment (including interest thereon) shall constitute a legal, valid and binding non-ad valorem assessment and a resulting lien upon the Assessed Property, equal in rank and dignity with the lien of all state, county, district and municipal taxes and superior in dignity to all other liens, titles and claims, until paid. (E) The execution and recordation of this Agreement (or summary memorandum thereof) by the parties constitutes the levy of the Special Assessment against the Assessed Property without any further action required by the parties. SECTION 4. OWNER REPRESENTATIONS AND ACKNOW- LEDGEMENTS. By execution hereof, Owner represents, warrants, acknowledges, consents and declares as follows: (A) Owner and no other person is vested with fee simple title of record to the Assessed Property. (B) Owner acknowledges that the Improvements confer direct special benefits to the Assessed Property equal to or in excess of any amounts due hereunder, and that such amounts due hereunder represent a fair and reasonable apportionment, in all respects, of the costs and charges attributed to the Assessed Property in association with the acquisition, construction and financing of the Improvements. (C) Owner waives all rights to subsequently challenge the Special Assessment on the basis of procedural irregularities, notice or due process claims, insufficient benefits, improper or unfair apportionment or any other basis, and acknowledges that this Agreement provides an alternative and extraordinary payment opportunity and is fundamental consideration given by 3 the District in exchange for resolving all questions about the validity, appropriateness, and enforceability of the Special Assessment and upon execution of this Agreement any question or controversy regarding the Special Assessment shall forever be conclusively resolved. (D) Owner acknowledges that the Special Assessment shall be pledged to the repayment of bonds or other debt obligations issued by the District to the Bondholder. (E) Owner agrees and covenants to timely pay each Annual Payment and acknowledges that failure to pay any Annual Payment may result in loss of title. (F) Owner acknowledges that this Agreement or a summary memorandum will be recorded in the public records of St. Lucie County, Florida, and that upon recordation the Special Assessment arising hereunder shall constitute a lien coequal with the lien of all state, county, district, and municipal taxes and assessments, superior in dignity to all other liens, titles, and claims, until paid. (G) Owner acknowledges and covenants that this Agreement shall run with, touch and concern the Assessed Property and shall be binding on such property and the Owner and all successors in interest. (H) Owner agrees to execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, from time to time such supplements hereto and such further instruments, corrective or otherwise, as may reasonably be required to carry out the intention of this Agreement. (I) Owner agrees to maintain the Improvements and provide for the timely repair of the Improvements, at Owner's expense, throughout the term of this Agreement. (n Owner is solely responsible for obtaining permits necessary for construction of the Improvements and for selecting and engaging the Vendor and, to the extent that any ~~ork involved with acquisition, construction and installation of the Improvements requires a license under any applicable law, for ensuring that the Vendor is properly certified or registered pursuant to part I or part II of Chapter 489, Florida Statutes. Owner shall provide copies of any permits necessary for construction of the Improvements to the District upon request. (I~ Owner represents that all property taxes and any other assessments levied on the same bill as property taxes for the Assessed Property are paid and have not been delinquent for the preceding 3 years or the Owner's period of ownership, whichever is less; there are no involuntary liens, including, but not limited to, construction liens on the Assessed Property; no notices of default or other evidence of property-based debt delinquency have been recorded during the preceding 3 years or the Owner's period of ownership, whichever is less; and Owner is current on all mortgage debt on the Assessed Property, if any, and no notices of default or foreclosure due to non-payment of property taxes or mortgage loan payments within the preceding 3 years. (L) [If applicable: Owner has obtained the written consent of the holders or loan servicers of any mortgage encumbering or otherwise secured by the Assessed Property regarding execution of this Agreement by the Owner, including an acknowledgement that upon recordation of the Financing Agreement, the entire balance of the Special Assessment (including 4 interest thereon) shall constitute a legal, valid and binding non-ad valorem assessment and a resulting lien upon the Assessed Property, equal in rank and dignity with the lien of all state, county, district and municipal taxes and superior in dignity to all other liens, titles and claims, until paid. Owner has provided the District with a copy of such written consent prior to execution hereof.] (NI) Owner acknowledges that any inspection of the Improvements required by applicable building codes or the Program do not insure quality of workmanship, and Owner is solely responsible for ensuring that the Improvements are completed as proposed in the proposal, estimate, and/or binding written invoice provided by the Vendor. (N) Owner agrees to provide utility records to assist the District in tracking utility savings resulting from the Improvements. (O) Owner hereby assigns to the District any carbon credits resulting from the Improvements in consideration for the District providing the financing option provided for herein. (P) Owner agrees to adjust any applicable mortgage escrow, or to start one, if requested by the holder of any mortgage pertaining to the Assessed Property, to pay the monthly equivalent of the Annual Payment. (Q) Owner hereby consents to providing the District with access to the Assessed Property for purposes of inspecting the Improvements. (R) Owner acknowledges that the repayment term contemplated hereunder may not exceed twenty (20) years. (S) Owner acknowledges that the Annual Payment will be collected on the annual property tax bill administered by the St. Lucie County Tax Collector and that the Annual Payment will include charges and fees imposed by the St. Lucie County Tax Collector in an amount up to 2% per year, in accordance with section 197.3632(2), Florida Statutes. (T) Owner acknowledges that there is no discount associated with prepaying the Special Assessment prior to its maturity, and that a premium will apply to any prepayment as provided in Section 12. SECTION 5. DISBURSEMENT. (A) Subject to the terms and conditions set forth herein, upon (i) execution and recording of this Agreement or a summary memorandum, (ii) completion of the Improvements by Vendor, and (iii) inspection and approval of the completed Improvements by the District, the District shall cause disbursement of the Disbursement Amount directly to the Vendor. 5 (B) By execution hereof, Owner ackno~~ledges and directs disbursement of the Disbursement Amount directly to the Vendor. SECTION 6. COLLECTION OF SPECIAL ASSESSMENT ON PROPERTY TAX BILL; CAPITALIZED INTEREST. (A) Annual Payments, including Collection Costs and annual interest on the Special Assessment as provided in paragraph (C) below, shall be collected on the property tax bill pertaining to the Assessed Property as provided for in the Act and Section 197.3632, Florida Statutes. The Annual Payment due in any Tax Year shall therefore be payable in the same manner and at the same time as ad valorem taxes on real property are payable and shall become delinquent at the same times and shall be subject to the same collection and enforcement mechanisms as ad valorem taxes. By execution hereof, Owner acknowledges that failure to pay the Special Assessment or any Annual Payment may result in the issuance of a tax certificate and/or tax deed and may result loss of title to the Assessed Property pursuant to Chapter 197, Florida Statutes. (B) Following recordation of this Agreement or a summary memorandum in the public records of St. Lucie County, Florida, Annual Payments shall be collected on the property tax bill as provided herein in the amounts and for the term set forth in Appendix C, commencing with the tax bill to be issued in November, 20_. (C) Interest shall accrue on the unpaid Special Assessment from [the effective date hereof/thirty days after approval of the financing agreement by Inland] at a simple interest rate of not to exceed percent (_%) per annum computed on a 30/360 day count basis. If applicable, the first Annual Payment may consist solely of capitalized interest representing interest accruing on the Special Assessment between the effective date hereof and April 30, 20 ,and shall be payable from proceeds of the Disbursement Amount. The amount of capitalized interest is set forth in Appendix C. SECTION 7. USE OF PROCEEDS. (A) Funds advanced by the District hereunder shall be used for the sole purpose of paying the costs and expenses of acquiring and constructing the Improvements. Such costs and expenses may include, but are not limited to, recording fees, accounting and legal fees, costs associated with energy audits, if applicable, including reimbursement to the Owner for energy audits related to the Improvements and approved by the Program Administrator, origination fees and Program Administrator fees, Capitalized Interest, if applicable, disbursement of the Disbursement Amount to the Vendor. Such costs and expenses are described in Appendix C hereto. SECTION 8. REBATES AND CREDITS. The Owner bears sole responsibility for identifying, applying for and obtaining any rebates, refunds, credits or allowances pertaining to the Improvements which may be available from manufacturers, federal, state or local authorities or any other source. 6 SECTION 9. SITE PREPARATION. The parties hereto acknowledge that a reasonable amount of site preparation may be necessary prior to installation of the Improvements, and Owner bears the responsibility for ensuring that the cost of such preparation has been included in the Disbursement Amount. Owner agrees and acknowledges that the District shall have no obligation to fund costs associated with extraordinary preparation of the site or repair work for any structure, building or facility to which the Improvements shall be affixed which were not included in the Disbursement Amount or which were otherwise not apparent to the Owner or Vendor prior to commencement of installation of the Improvements. Costs associated with such extraordinary preparation or repair work shall be the sole responsibility of the Owner. SECTION 10. DEFAULT; ACCELERATION. Failure to make an Annual Payment shall subject the Assessed Property to the tax certificate enforcement mechanism administered by the St. Lucie County Tax Collector under Chapter 197, Florida Statutes, which may result in loss of title. The District reserves the right to enforce any payment delinquency or default by the Owner or any successor owner of the Assessed Property in any manner authorized by law including foreclosure. Owner shall pay all costs incurred by the District for such enforcement, including reasonable attorney's fees. District will not seek to accelerate the unpaid balance of the Special Assessment in the absence of any such default or upon transfer of the Assessed Property to a successor owner provided no payment delinquency exists. SECTION 11. RESERVED. SECTION 12. PREPAYMENT OF SPECIAL ASSESSMENT. Owner may prepay the Special Assessment by paying the principal amount owing on the Special Assessment, and accrued interest, less a credit for interest paid and not yet accrued, if any, and a prepayment premium equal to 5% of the principal balance outstanding, all as determined by the District. Owner shall notify the Program Administrator in writing of O~~ner's determination to prepay the Special Assessment at least ten (10) Business Days prior to the date Owner intends to prepay the Special Assessment. SECTION 13. DISCLOSURE. During the term of this Agreement, Owner agrees that at or before the time a purchaser executes a contract for the sale and purchase of the Assessed Property, the Owner shall give the prospective purchaser a written disclosure statement in the following form, which shall be set forth in the contract or in a separate writing: QUALIFYING IMPROVEMENTS FOR ENERGY EFFICIENCY, RENEWABLE ENERGY, OR WIND RESISTANCE. The property being purchased is located within the jurisdiction of a local government that has placed an assessment on the property pursuant to section 163.08, Florida Statutes. The assessment is for a qualifying improvement to the property relating to energy efficiency, renewable energy, wind resistance or water conservation, and is not based on the value of property. You are encouraged to contact the county property 7 appraiser's office to learn more about this and other assessments that may be provided bylaw. SECTION 14. INDEMNIFICATION. Owner shall indemnify and hold harmless the Bondholder, the District and the Program Administrator, including their respective officers, agents and employees from, and, if requested, shall defend them against any and all loss, cost, damage, injury, or liability in connection with this Agreement including the manufacture, supply or installation of the Improvements. The foregoing indemnity shall include, without limitation, reasonable fees of attorneys, consultants and experts and related costs and costs of investigating any claims against the Bondholder, the District and the Program Administrator. SECTION 15. SEVERABILITY. Each and every provision of this Agreement is, and shall be construed to be, a separate and independent covenant and agreement. If any term or provision of this Agreement or the application thereof shall to any extent be held to be invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to circumstances other than those to which it is invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and shall be enforced to the extent permitted by law. SECTION 16. GOVERNING LAW; VENUE. This Agreement shall be governed by the law of the State of Florida. Unless otherwise required by law, venue for any action or proceeding to construe or enforce the provisions of this Agreement or any matters associated therewith shall lie in the Circuit Courtin and for St. Lucie County, Florida. SECTION 17. ASSIGNMENT. The District, at its option, may (i) assign any or all of its rights and obligations under this Agreement, and (ii) pledge and assign its right to receive the Special Assessment and any other payments due to District hereunder, ~~ithout obtaining the consent of Owner. SECTION 18. TERM. The term of this Agreement shall be until the Special Assessment, including all accrued interest thereon, has been paid in full. SECTION 19. THIRD PARTY BENEFICIARY. The parties hereto acknowledge that the Bondholder is a third party beneficiary of this Agreement. SECTION 20. ENTIRE AGREEMENT; COUNTERPARTS; AMENDMENT. This Agreement is the entire agreement between the parties. Any other agreement related to the Improvements, and any amendment to this Agreement, must be signed in writing by both parties. If there is more than one "Owner," the obligations hereunder of all Owners shall be joint and several. This Agreement may be executed in several counterparts, each of which shall be deemed an original, and all of such counterparts together shall constitute one and the same instrument. 8 THE DECLARATIONS, ACKNOWLEDGEMENTS AND AGREEMENTS CONTAINED HEREIN SHALL RUN WITH THE LAND DESCRIBED IN APPENDIX A HERETO AND SHALL BE BINDING ON THE OWNER AND ON ALL PERSONS (INCLUDING CORPORATIONS, ASSOCIATIONS, TRUSTS, AND OTHER LEGAL ENTITIES) TAKING TITLE TO ALL OR ANY PART OF THE LAND, AND ITS SUCCESSORS IN INTEREST. BY TAKING SUCH TITLE, SUCH PERSONS SHALL BE DEEMED TO HAVE CONSENTED AND AGREED TO THE PROVISIONS OF THIS AGREEMENT TO THE SAME EXTENT AS IF THEY HAD EXECUTED IT AND BY TAKING SUCH TITLE, SUCH PERSONS SHALL BE ESTOPPED FROM CONTESTING, IN COURT OR OTHERWISE, THE VALIDITY, LEGALITY AND ENFORCEABILITY OF THIS AGREEMENT IN WITNESS WHEREOF, Owner and District have entered into this Agreement as of the last day signed below. ST. LUCIE COUNTY SUSTAINABILITY DISTRICT By: Contract Administrator Date ATTEST: Deputy Clerk 20 9 IN WITNESS WHEREOF, Oti~ner and District have entered into this Agreement as of the last day signed below. OWNER [add additional signature blocks if Assessed Property is owned jointly] Signed, sealed and delivered In our presence: Witness #1 sy: [Name] (Witness #7 printed name) Witness #2 (Witness #2 printed name) STATE OF FLORIDA COUNTY OF ST. LUCIE The foregoing Agreement was acknowledged before me this _ day of 20 by as Owner of He/she [ ] is personally known to me, or [ ] has produced as identification. (Notary Seal) Signature of Notary Public Name of Notary Typed, Printed or Stamped Date: 20 10 APPENDIX A DESCRIPTION OF ASSESSED PROPERTY Owner Name(s): Property Address: Parcel Identification No.: Legal Description: A-1 APPENDIX B DESCRIPTION OF IMPROVEMENTS [DESCRIBE OR AFFIX VENDOR INVOICE] B-1 APPENDIX C SPECIAL ASSESSMENT AND ANNUAL PAYMENTS Parcel Identification No.: Svecial Assessment Amount Recording Fees: $ Program Administrator Fee: District Administration Fee: Origination Fee: Capitalized Interest: Reimbursement of energy audit expense to owner: Disbursement Amount Paid to Vendor: TOTAL SPECIAL ASSESSMENT $ Interest Rate: Annual Payment (including interest and Collection Costs): $ Number of Annual Payments: Annual Payments Commence: November, 20_ Payment Schedule/Amortization Table: [TO COME] isbursement Dates: First Payment Will Appear on Tax Bill for Year: Annual Payment Due No Later Than: Se tember 1, 2013 - Au ust 15, 2014 2014 March 31, 2015 Se tember 1, 2014 - Au ust 15, 2015 2015 March 31, 2016 Se tember 1, 2015 - Au ust 15, 2016 2016 March 31, 2017 Se tember 1, 2016 - Au ust 15, 2017 2017 March 31, 2018 C-1 [FORM OF SERIES 2014 BOND] R- STATE OF FLORIDA ST. LUCIE COUNTY SUSTAINABILITY DISTRICT TAXABLE SPECIAL ASSESSMENT BOND, SERIES 20_ Interest Rate Date of Original Issuance J 20_ Owner: [OWNER] Principal Amount: AND NO/100 DOLLARS KNOW ALL PERSONS BY THESE PRESENTS that the St. Lucie County Sustainability District (the "Issuer"), for value received, hereby promises to pay (the "Owner"), on each Annual Payment Date commencing with the first Annual Payment Date of the calendar year in ~n~hich a Special Assessment imposed pursuant to a Financing Agreement is due, the aggregate annual principal and interest of the Special Assessments funded with proceeds of a draw of principal of this Bond, each such payment of principal and interest as reflected on the respective Reconciliation. Principal of and interest on this Bond is payable in lawful money of the United States of America pursuant to written instructions received from such Owner. Capitalized terms used in this Bond and not otherwise defined shall have the meanings set forth in the Special Assessment Funding Agreement dated , 2014 (the "Funding Agreement") by and between the Issuer, the Owner and the Solar And Energy Loan Fund of St. Lucie County, Inc. (the "Program Administrator"). THIS BOND IS A LIMITED OBLIGATION OF THE ISSUER PAYABLE SOLELY OUT OF THE PLEDGED REVENUES PLEDGED THEREFOR UNDER THE FUNDING AGREEMENT AND NEITHER THE PROPERTY, THE FULL FAITH AND CREDIT, NOR THE TAXING POWER OF THE ISSUER, ST. LUCIE COUNTY, FLORIDA, THE STATE OF FLORIDA, OR ANY POLITICAL SUBDIVISION THEREOF, IS PLEDGED AS SECURITY FOR THE PAYMENT OF THE BOND, EXCEPT THAT THE ISSUER IS OBLIGATED UNDER THE FUNDING AGREEMENT TO LEVY AND TO EVIDENCE AND CERTIFY, OR CAUSE TO BE CERTIFIED, FOR COLLECTION, SPECIAL ASSESSMENTS (AS DEFINED IN THE FUNDING AGREEMENT) TO SECURE AND PAY THE BOND. THE BOND DOES NOT CONSTITUTE AN INDEBTEDNESS OF THE ISSUER, ST. LUCIE COUNTY, FLORIDA, THE STATE OF FLORIDA, OR ANY POLITICAL SUBDIVISION THEREOF WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY PROVISION OR LIMITATION. This Bond shall not be valid or become obligatory for any purpose or be entitled to any benefit or security under the Funding Agreement until it shall have been authenticated by 1 execution of the Program Administrator, or such other authenticating agent as may be appointed by the Issuer, of the certificate of authentication endorsed hereon. This Bond is an authorized issue of the St. Lucie County Sustainability District, a dependent special district established by St. Lucie County, Florida (the "County") designated as "St. Lucie County Sustainability District Taxable Special Assessment Bond, Series 2014" (the "Bond"), in the aggregate principal amount of Dollars ($ ). The Bond is being issued under authority of the laws and Constitution of the State of Florida, including particularly Section 163.08, Florida Statutes (the "Supplemental Act") and County Ordinance No. 10-025, to pay the Program Costs associated with Qualifying Improvements funded through Financing Agreements. The Bond is issued under and secured by the Funding Agreement. Reference is hereby made to the Funding Agreement for the provisions, among others, with respect to the application of the proceeds Advances made under the Funding Agreement, the operation and application of the funds and accounts charged with and pledged to the payment of the principal of and the interest on the Bond, the levy and the evidencing and certifying for collection, of Special Assessments, the nature and extent of the security for the Bond, the terms and conditions on which the Bond is issued, the rights, duties and obligations of the Issuer and of the Program Administrator under the Funding Agreement, the conditions under which such Funding Agreement may be amended, and as to the rights and remedies of the Owner. The Owner of this Bond shall have no right to enforce the provisions of the Funding Agreement or to institute action to enforce the covenants therein, or to take any action with respect to any event of default under the Funding Agreement or to institute, appear in or defend any suit or other proceeding with respect thereto, except as provided in the Funding Agreement. It is expressly agreed by the owner of this Bond that such owner shall never have the right to require or compel the exercise of the ad valorem taxing power of the Issuer, the County, the State of Florida or any political subdivision thereof, or taxation in any form of any real or personal property of the Issuer, the County, the State of Florida or any political subdivision thereof, for the payment of the principal of, premium, if any, and interest on this Bond or the making of any other payments provided for in the Funding Agreement, except for Special Assessments to be assessed and levied by the Issuer as set forth in the Funding Agreement. By the acceptance of this Bond, the owner hereof assents to all the provisions of the Funding Agreement. This Bond is payable from and secured by Pledged Revenues, as such term is defined in the Funding Agreement, all in the manner provided in the Funding Agreement. The Funding Agreement provides for the levy and the evidencing and certifying, of non-ad valorem assessments in the form of Special Assessments to secure and pay the Bonds. 2 This Bond is subject to prepayment prior to its maturity, in whole, on any date; provided, however, that the prepayment amount shall include all outstanding principal and interest accrued thereon together with a prepayment penalty of 5% of the outstanding principal balance. 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, including particularly the Act, and that the issuance of this Bond is in full compliance with all constitutional and statutory limitations or provisions. IN WITNESS WHEREOF, the St. Lucie County Sustainability District has issued this Bond and has caused the same to be executed by its Chair, either manually or with her/his facsimile signature, and the corporate seal of said District or a facsimile thereof to be affixed hereto or imprinted or reproduced hereon and attested by the manual or facsimile signature of the Clerk, all as of the Date of Issue above. (SEAL) ST. LUCIE COUNTY SUSTAINABILITY DISTRICT By: ATTEST: By: Chair, Board of Commissioners Clerk of the Circuit Court, ex-officio Secretary/Treasurer of the Board of Commissioners 3 CERTIFICATE OF AUTHENTICATION This Bond is delivered pursuant to the within mentioned Funding Agreement. Date of Authentication: SOLAR AND ENERGY LOAN FUND OF ST. LUCIE COUNTY, INC., as Program Administrator By: Authorized Officer C-4 STATEMENT OF VALIDATION This Bond is one of a series of debt obligations which were validated by judgment of the Circuit Court of the Nineteenth Judicial Circuit of Florida, in and for St. Lucie County, Florida, issued on the 30th day of November, 2010. ST. LUCIE COUNTY SUSTAINABILITY DISTRICT By: Name: Title: Chair C-5 SELF submtts Pre- r^ ~--- -----' ._ Approved Loan to (~ ' "--~ ' ` " LENDER ...--. ., _._ Contractor Proposal, ,... ., Application, EA (when i applicable), and total ! i ~ amount of ~= LENDER Revses ~, Improvements. t.--. _..-__ project and `' PACE Loan A royal Process Documents accordng ..-- .---. pP to agreed crtere. Loan Is ~ SELF s Nottied of SELF revises dots and Pre- Declnatbn and reasons for decides to resubmit Or Approved Decination notifies Client by LENDER Yes Notificatbn of Pre- Approval and 6 sent t0 SELF ..._.__-°_~_"'_'_,....._-~- Pre-Approval Memo from Inland SELF sends complete LENDER APPROVAL: SELF fnafees Loan "Appication Package" Reviews and Provides SELF Documents wth complete to LENDER for "Final and County with "Appicatfon Package" Assessment "ASSESSMENTAPPROVAL" Approval" ,.e..~ _ _. _. "ASSESSMENT APPROVAL FORM" includes name of client and amount of Financing SELF Prepares LENDER Prepares "Request for and sends SELF Advance" Payment Schedule Interest Starts ' Acuuing ,i SELF Not~ies Contractor to Proceed * Prepared by SELF 06.30.2014 SELF presents Payment Schedule to Client Property Owner (CLIENT) Accepts and Signs Payment Schedule" Payment Schedule is Issued by INLAND to SELF & Client D-2 Loan Disbursement Process i W i ~ Confndpr Compktts ' SELF prepares 'Advance Request" i 9roJedand Presents li -~ InvokeLOSEIF „Ad Peq est Form ` t.. _ i DISTRICTrecieves SELF verifies Advance Request" With Completion of Final Documents ' project and s verifies againstLENDER Submits "Assessment Approval Form" "Verification and Approval to Fund" to Lender and District ' Prepared try SELF o6.3~.2~14 ,, =_ _ ~ r ~ (Lender retains 1% originatbn = fee ) iu !€ a . SELF submits ~ ~ ~' tk u n ~ W ~ DI51'RlRpays out ~ ~ - V ~ upfront fees, retains Verfidtion of LENDER Deposits Project Capitalized Interest, if Completionand ~~ Funds into DISTRICT ~: ~ ,_ ~; any,for paymertm Approval to Fund ~" ` ~ ~ ESCROW ACCT. ; s:. lender, deposits toIFNDER& ° er f / ~ ~ e w balanceto SEtF ..._/ r ~ as DISI'RIR LLL...... ~ a w ~ b ~ s Ir e "Verification and ~; k Projen n . ~ in SELF ~ r ~ Completion' PREPARES I _ TAX ROLL FOR f DISTRICT , ~'B ~ ~ ~ d~i~~~~~ ~ ~ a k',.~ <: r ~ ~ DISTRICT Certifies In c re ar ® r< Tax Roll ii c ~ k .g ~ f":. :u r,. I .: •° a SELF Records r r puessemdd E-2 Yes D4STRlCT pays Capitalized Interest to Lender on annual payment date. ,I I I DISTRICT ADMINISTRATION FEE 2°/a f SELF ORIGINAT]ON AND PROJECT MGMT I FEE 4.5°Jo ' V DISTRICT Retains I Capidlited I Interest if any. I I I Wpkalixed I Interest I acttued No 1 I I Balance of Funds are deposited by DISTAIR I into SELF"PACE" Account I f SELF DISBURSES I PJNDS TO CONTRACTORS AND OTHER COSTS a r