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Resolution 004-1993 Lp . - RESOLUTION NO. 004 -1993 A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA, AUTHORIZING THE CONSTRUCTION OF IMPROVEMENTS TO THE CARD SOUND ROAD AND BRIDGE FACILITIES ~ IN MONROE COUNTY, FLORIDA; PROVIDING FOR THE ~ -- ISSUANCE OF NOT EXCEEDING $5,000,000 CARD g ~ SOUND ROAD AND BRIDGE IMPROVEMENT REVENUE rr, C":> ~ BONDS, SERIES 1993, OF THE COUNTY TO FINANCE ci~ ~ THE COST THEREOF; PROVIDING FOR THE PAYMENT OF ~C":>: SUCH BONDS FROM THE NET REVENUES AND OTHER ~~~ FUNDS DESCRIBED HEREIN; MAKING CERTAIN ~<~ ~ COVENANTS AND AGREEMENTS If' CONNECTION ,:);-1 ~ THEREWITH; AND PROVIDING AN EFFECTIVE DATE ..,; (;-{ BE IT RESOLVED BY MONROE COUNTY, FLORIDA: THE ...... l'\J BOARD OF COUNTY COMMISSIONERS OF , ; ... to Co.) '.rl ~ r=:: Cb rq C'J c." 2;' :;rJ ::n ::rJ ~ /"r1 to g :u ',::I ARTICLE I AUTHORITY, DEFINITIONS AND PINDINGS SECTION 1.01 AUTHORITY FOR THIS RESOLUTION. This Resolution is adopted pursuant to the provisions of Chapter 125, Florida Statutes, Ordinance No. 056-1988 of the County, and other applicable provisions of law. SECTION 1.02 DEFINITIONS. Unless the context otherwise requires, the terms defined in this Section 1.02 shall have the meanings specified in this Section 1.02. Words importing singular number shall include the plural number in each case and vice versa, and words importing persons shall include firms and corporations. A, "Accountant" shall mean public accountant or firm of certified time employed by the Issuer under Resolution to perform and carry out Accountant by this Resolution. the independent certified public accountants at the the provisions of this the duties imposed on the B. "Act" shall Ordinance No. 056-1988 provisions of law. C. "Additional parity Bonds" shall mean additional obligations of the Issuer which have an equal lien on the Pledged Funds and rank equally in all applicable respects with the Bonds \ initially issued hereunder. mean Chapter 125, of the County, and Florida Statutes, other applicable # -...... .J L .. D. "Amortization Installment" with respect to any Current Interest Paying Bonds of a series, shall mean an amount so designated which is established for the CUrrent Interest Paying Term Bonds of such series, provided that (1) each such installment shall be deemed to be due on such interest or principal maturity date of each applicable year as is fixed by subsequent resolution of the Board, and (2) the aggregate of such installments for such series shall equal the aggregate principal amount of Current Interest Paying Term Bonds of such series authenticated and delivered on original issuance; and with respect to any Term Bonds of a series issued as Capital Appreciation Bonds, shall mean the Compounded Amounts so designated by subsequent resolution of the Board, provided that each such installment shall be deemed to be due on such date of each applicable year as is fixed by subsdquent resolution of the Board. E. "Authorized Investments" shall mean any of the following if and to the extent the same are at the time legal for investment of county funds: ) (1) Government Obligations which are held in a custody or trust account by a bank or savings and loan association which is either (a) a "qualified public depository" under the laws of the state of Florida or (b) has capital, surplus and undivided profits of not less than $50,000,000, and which is a member of the Federal Deposit Insurance Corporation ("FDIC"); (2) bonds, debentures, notes, participation certificates or other evidences of indebtedness issued, or the principal of and interest on which are unconditionally guaranteed, by the Federal Home Loan Bank System, the Export- Import Bank of the United states, the Federal Financing Bank, the Government National Mortgage Association, the Farmers Home Administration, the Federal Housing Administration or the Maritime Administration; (3) time and demand deposits savings and loan association which is "qualified public depository" under Florida; in any commercial bank or a member of FDIC and is a the laws of the state of (4) repurchase agreements fully and continuously secured by Government Obligations, with any bank, trust company, national banking association or savings and loan association which is a member of FDIC and is a "qualified public depository" under the laws of the state of Florida; or with any registered government bond broker/dealer which is subject to the jurisdiction of the Securities Investors' Protection Corporation; provided, (a) such Government Obligations are held by the Issuer \ or a third party which is (i) a Federal Reserve Bank, ,or (ii) a bank or savipgs and loan association which is a member of FDIC and is a "q1.lalified public depository" under the laws of the state of Florida, or (iii) a bank or savings and loan association 2 3247/MON59001/AAO J approved in writing for such purpose by the municipal bond insurer, if applicable; and the Issuer shall have received written confirmation from the third party that it holds such Government Obligations; and (b) a perfected first security interest in or title to such Government Obligations is created or obtained for the benefit of the Issuer; (5) shares in a money market fund, the investments of which are exclusively in Government Obligations; (6) any other agreements for the investment of money between the Issuer and a bank, trust company, national banking association or corporation subject to registration with the Board of Governors of the Federal Reserve Syste~under the Bank Holding Company Act of 1956 or the Federal National Mortgage Association, or any corporation, including insurance companies, (a) whose unsecured obligations or uncollateralized long term debt obligations have been assigned ratings by Standard & Poor's Corporation, New York, New York ("S&P"), and Moody's Investors Service, New York, New York ("MOody's"), which are equal to or higher thanl the ratings initially assigned by S&P and Moody's to the Bonds, or (b) which has issued a letter of credit contract, agreement or surety bond in support of debt obligations which have been so rated; or (7) any other investments authorized or permitted from time to time by Section 125.31, Florida Statutes, or any other law of the State of Florida controlling the investment of surplus public funds of a county. F. "Board" shall Commissioners of the Issuer. mean the Board of County G. "Bond Insurance policy" shall mean the municipal bond new issue insurance policy issued by the applicable Bond Insurer guaranteeing the timely payment of principal of and interest on a series of Bonds, when due. H. "Bond Insurer" shall mean, with respect to the Bonds originally issued hereunder, the municipal bond insurance company, if any, guaranteeing the timely payment of principal of and interest on the Bonds. I. "Bond Registrar" shall mean the officer of the Issuer or such bank or trust company, located within or without the State of Florida, who or which shall maintain the registration books of the Issuer and be responsible for the transfer and exchange of the Bonds, and who or which also may be the paying agent for the Bonds and interest thereon. J. "Bond Year" shall mean the one year period ending on a princi~l maturity date or Amortization Installment due date for the Bonds. 3 3247/MON5'OOl/AAO .~ l L ~ K. "Bonds" shall mean the Card Sound Road and Bridge Improvement Revenue Bonds, Series 1992, herein authorized to be issued, together with any Additional parity Bonds hereafter issued under the terms, conditions and limitations contained herein. L. "Capital Appreciation Bonds" shall mean Bonds, the interest on which (1) shall be compounded periodically, (2) shall be payable at maturity or redemption prior to maturity and (3) shall be determined by reference to the Compounded Amounts. M. "Card Sound Bridge" shall mean the bridge now owned, operated and maintained by the Issuer which crosses the Card Sound in northern Monroe County, Florida, and connects Monroe county Road 905A with u.S. Ol~ Dixie Highway on the Florida peninsular mainland in southern Dade County, Florida. N. "Card Sound Bridge Approach Road" or "Card Sound Road" shall mean the approach road on the northern and southern side of, and leading to, the Card Sound Bridge, all as more particularly described in Ordinance No. 034-1989 of the Issuer. I o. "Code" shall mean the Internal Revenue Code of 1986, as amended, 'together with the valid and applicable regulations and proposed and temporary regulations thereunder, and, if applicable, under the Internal Revenue Code of 1954, as amended; and any successor provisions. P. "Compounded Amounts" with respect to any Capital Appreciation Bonds, shall mean the amounts so designated in a subsequent resolution of the Board, representing principal and interest accrued on such Capital Appreciation Bonds. Q. "Consulting Engineers" shall mean one or more qualified and recognized consulting engineers or firm of consulting engineers having favorable repute, s~ill and experience with respect to (1) the planning and operation of road and bridge facilities and/or (2) traffic studies and toll revenue projections, as applicable, who shall be retained from time to time by the Issuer. R. "Cost of Operation and Maintenance" of the Facilities shall mean the current expenses, paid or accrued, of operation and maintenance of the Facilities as calculated in accordance with generally accepted accounting principles, but shall not include expenses not annually recurring, such as any reserve for renewals and replacements, repairs or extraordinary conditions, any allowance for depreciation or amortization, any Debt Service Requirement, or any payments in lieu of taxes. S. "CUrrent Interest paying Bonds, the interest on which shall be basis. " Bonds" shall mean the payable on a semiannual 4 3247/MON~'OOl/AAO L T. "Debt Service Requirement" for any Bond Year, as applied to the Bonds, shall mean the sum of: (1) The amount required to pay the interest becoming due on the Current Interest paying Bonds during such Bond Year, except to the extent that such interest shall have been provided by payments into the Sinking Fund out of Bond proceeds for a specified period of time. (2) The aggregate amount required to pay the principal becoming due on Current Interest Paying Bonds for such Bond Year. For purposes of this definition: (a) the stated maturity date of any Current Interest paying Term Bonds shall be disregarded and the Amortization Installments applicable to such CUrrent Interest paying Term Bonds in such Bond Year shall-be deemed to mature in such Bond Year; and (b) the principal amount of any CUrrent Interest paying Term Bonds having a single principal maturity and no Amortization Installments therefor shall be calculated as if the amount of such single maturity had been amortized over a term of years and was payable in such payments of principal and interest as1shall be set forth in a subsequent resolution of the Board adopted prior to the delivery of any such Bonds. (3) The aggregate amount required to pay the Compounded Amounts due on any Capital Appreciation Bonds maturing in such Bond Year. For purposes of this definition, the stated maturity date of any Capital Appreciation Term Bonds shall be disregarded and the Amortization Installments applicable to such Capital Appreciation Term Bonds in such year shall be deemed to mature in such year. U. "Facilities" shall mean (1) the Card Sound Bridge Approach Road, (2) the Card Sound Bridge, and (3) any and all improvements and additions thereto hereafter constructed or acquired by the Issuer. V. "Federal Securities" shall mean, collecti~ely, (1) Government Obligations; (2) bank certificates of deposit fully secured as to principal and interest by the obligations described in (1); (3) certificates evidencing ownership of portions of such obligations described in (1) held by a bank or trust company as custodian, under which the owner of the investment is the real party in interest and has the right to proceed directly and independently against the obligor on the underlying obligations if such underlying obligations are not available to satisfy any claim against the custodian; or (4) municipal obligations that have been advance refunded, are secured by an escrow within which are held obligations described in (1) and have been rated in the highest rating category by either S&P or Moody'.; none of which described in (1), (2), (3) or (4) above ere subject to redemption I prior to maturity at the option of the obligor. .. 5 3247/MON5iOOl/AAO , L .. October or such to time w. "Fiscal Year" shall mean the period conunencing on 1 of each year and ending on the succeeding September 30, other annual period as may be prescribed by law from time for the Issuer. x. "Government Obligations" shall mean direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the united states of America, including Interest Components of Resolution Funding Corporation bonds issued by the Resolution Funding Corporation under the authority of 12 U.S.C. S1441b or receipts, certificates or other similar documents evidencing ownership of future principal or interest payments due on such obligations. . Y. "Gross Revenues" or "Revenues" shall mean all tolls, income, fees, rentals, earnings or other charges derived by the Issuer from the operation of the Facilities; all state and federal grants received with respect to the Facilities, after completion of the Project (to the extent such inclusion is not violative of any applicable state and federal laws and regulations that pertain to such grants); and income from investments of Revenues from time to time on deposit in the Revenue Fund, operation and Maintenance Fund, Sinking Fund (including the Bond Amortization Account and Reserve Account therein), Renewal, Replacement and Improvement Fund and Construction Fund, except to the extent such investment income is required to be rebated to the united States Treasury. z. "Holder of Bonds" term shall mean any person who any such Bond or Bonds. or "Bondholders" or any similar shall be the Registered Owner of M. "Issuer" shall mean Monroe County, Florida. BB. "Maximum Debt S~rvice Requirement" shall mean, as of any particular date of calculation, the greatest amount of aggregate annual Debt Service Requirements for all series of outstanding Bonds for the then current or any future Bond Year. CC. "Net Revenues" Revenues or Gross Revenues operation and Maintenance. DO. "Non Ad valorem Revenues" means for purposes of the test for the issuance of additional debt obligations, all of the revenues of the Issuer derived from sources other than ad valorem taxation, other than enterprise fund revenues, subject to any prior liens or encumbrances on all or any specified portion thereof, whether now existing or hereafter created. The term "Non Ad Valorem Revenues" for purposes of the covenant to budget and appropriate for payment of the Debt Service Requirement and deficiencie. in the Reserve Account and/or the Business Interruption Reserve Fund, shall mean all of the revenue. of the Issuer derived from sources other than ad valorem taxation, other of the after Facilities shall mean the deduction of the Cost of 6 3247/MOHSt001/AA9 ~ ~ than enterprise fund revenues, legally available to fund the Debt Service Requirement and deficiencies in the Reserve Account and/or the Business Interruption Reserve Fund, subject to any prior liens or encumbrances on any portions thereof, whether now existing or hereafter created. EE. "pledged Funds" shall mean the Net Revenues. FF. "project" shall mean the construction of improvements to the Facilities, including raising the elevation of the Card Sound Bridge Approach Road, all in accordance with plans and specifications now on file or to be on file with the Issuer. GG. "Qualified Independent constlltant" shall mean one or more qualified and recognized independent consultants, having favorable repute, skill and experience with respect to the acts and duties required of a Qualified Independent Consultant to be provided to the Issuer, as shall from time to time be retained by the Issuer to perform the acts and carry out the duties herein provided for such consultants. HH. "Record Date" shall mean the 15th day of the month (whether or not a business day) immediately preceding any interest payment date for the Bonds. II. "Registered Owner" shall mean the owner of any Bond or Bonds as shown on the registration books of the Issuer maintained by the Bond Registrar. JJ. "Reserve Account Requirement" shall mean the lesser of (1) Maximum Debt Service Requirement, (2) 125% of the average Debt Service Requirement, or (3) an amount equal to 10% of the proceeds of the sale of the Bonds as set forth in Section 148(d)(2) of the Code. KK. "Resolution" shall mean, collectively, this resolution and all resolutions amendatory hereof or supplemental hereto. LL. "Serial Bonds" shall mean the Bonds which shall be stated to mature in semiannual or annual installments. MM. "Term Bonds" shall mean the Bonds which shall be stated to mature on one date and which shall be subject to mandatory redemption by operation of the Bond Amortization Account, or otherwise designated as such by resolution of the Board adopted prior to the delivery thereof. SECTION 1.03 FINDINGS. I determined and declared that: It is hereby ascertained, A. The Issuer now owns and operates the Pacilities and derives Revenues therefrom, . 7 3Z47/MONlt001/AAO L- B. It is necessary and desirable to construct the project, as provided herein, in order to further ensure the availability of the Card Sound Bridge Approach Road and Card sound Bridge as an evacuation route in the event of a natural disaster, and thereby preserve and protect the public health, safety and welfare of the inhabitants of the Issuer. C. The Pledged Funds are not now pledged or encumbered in any manner, and it is estimated that they will be sufficient to pay all principal of and interest on the Bonds originally issued hereunder, as the same become due, and to make all required sinking fund, reserve or other payments required by this Resolution. . D. The Issuer is authorized pursuant to the provisions of the Act to enter into a covenant to budget and appropriate from Non Ad Valorem Revenues, amounts necessary to pay the Debt Service Requirement on the Bonds in the event that the Pledged Funds are ever insufficient therefor, subject to the right of the Issuer to be repaid, with interest, from available Pledged Funds of the sums so budgeted and appropriated; and it is desirable and in the best interests of the Issuer that it agree so to budget and appropriate moneys to pay the Debt Service Requirement in the event that the Pledged Funds should ever be insufficient to pay the Debt Service Requirement on the Bonds. E. The Bond proceeds, together with Issuer contributions of approximately $6,250,000, representing funds currently on deposit and available to fund project costs, are estimated to be sufficient to fund the cost of construction of the Project. F. The principal of and interest on the Bonds and all required sinking fund, reserve and other payments shall be payable solely from the Pledg~d Funds. Neither the Issuer nor the State of Florida or any. political subdivision thereof or governmental authority or body therein shall ever be required to levy ad valorem taxes to pay the principal of and interest on the Bonds or to make any of the required sinking fund, reserve or other payments required by this Resolution or the Bonds, and such Bonds shall not constitute a lien upon any property owned by or situated within the corporate territory of the Issuer, except as provided herein with respect to the Pledged Funds. G. On the date of delivery of the Bonds originally issued hereunder, the Issuer expects to comply with the applicable provisions of Section 5.06 of Resolution No. 206-1990, as amended, of the Board regarding the issuance of additional obligations of the Issuer secured by a covenant to budget and appropriate certain legally available funds of the Issuer derived \ from sources other than ad valorem taxation. H. The Bonds will not be "private activity bonds" as defined in Section 141 of the Code. -. 8 3247/MON59001/AAO .. i I-.....-. does than face I. The Issuer (and all subordinate entities thereof) not reasonably expect to issue tax-exempt obligations (other "private activity bonds") in excess of $10,000,000 aggregate amount in the calendar year 1993. SECl'ION 1.04 RESOLUTION TO CONSTITUTE CONTRACl'. In consideration of the acceptance of the Bonds authorized to be issued hereunder by those who shall hold the same from time to time, this Resolution shall be deemed to be and shall constitute a contract between the Issuer and such Bondholders. The covenants and agreements herein set forth to be performed by the Issuer shall be for the equal benefit, protection and security of (a) the legal Holders of any and all of such Bonds, all of which shall be of equal rank and without preference, priority or distinction of any of the Bonds over any other thereof, except as expressly provided therein and herein, and (b) the Bond Insurer (if the outstanding Bonds are then covered by a Bond Insurance policy) . ., 9 3247/MONSV001/AAO ___"~____.____.,...,."......_",...."._>..."<~_""",,~,,."__.,..__.<~...,,,__,.""""'*....._._......W_~'""'."""N..~.._______,____'" L ARTICLE II AUTHORIZATION OF PROJECT AND OF ISSUAMCB OF BONDS; DESCRIPTION, DETAILS AND FORM OP BONDS SECTION 2.01 AUTHORIZATION OF PROJECT. There is hereby authorized the construction of the Project. The cost of such Project, in addition to the items set forth in the plans and specifications, may include, but need not be limited to, the acquisition of any lands or interest therein or any other properties deemed necessary or convenient-therefor; engineering, legal and financing expenses; expenses for estimates of costs and of revenues; expenses for plans, specifications and surveys; fees of fiscal agents, financial advisors or consultants; administrative expenses relating solely to the construction of the project (including, but not limited to, construction program management); premiums for municipal bond insurance policies; the creation and establishment of reasonable reserves for debt service; capitalized interest for a reasonable period after the date of delivery of the Bonds; the discount on the sale of the Bonds; and such other costs and expenses as may be necessary or incidental to the financing authorized by this Resolution and the construction of the Project and the placing of the same in operation, including (with the approval of bond counsel to the Issuer) reimbursement for money advanced for the cost of the Project from other funds of the Issuer. SECTION 2.02 AUTHORIZATION OF BONDS. Subj ect and pursuant to the provisions of this Resolution, obligations of the Issuer to be known as "Card Sound Road and Bridge Improvement Revenue Bonds, Series 1993," are hereby authorized to be issued in the aggregate principal amount of not exceeding $5,000,000. SECTION 2.03 DESCRIPTION OF BONDS. The Bonds. shall be dated, shall be issued in such denominations, shall bear interest at not exceeding the maximum rate authorized by applicable law, payable at such times, shall contain such other series designations if the Bonds are issued in installments and shall mature on such dates and in such years and in such amounts; all as shall be fixed by subsequent resolution or resolutions of the Board adopted at or prior to the sale of the applicable series of the Bonds. The Bonds shall be issued in fully registered form without coupons; shall be issued as CUrrent Interest paying Bonds or as Capital Appreciation Bonds, and as Serial Bonds or Term \ Bonds, or a combination thereof; shall be payable with respect to both princieal and interest at such bank or banks to be determined b~ the Issuer prior to the delivery of the Bonds; shall be payable in lawful money of the United States of America; and shall bear interest from their date or dates, payable by mail 10 3Z47/MONlt001/AAO I ~ to the Registered Owners at their addresses as they appear on the registration books. If Term Bonds are issued, Amortization Installments therefor may be fixed in the subsequent resolution described above. If Capital Appreciation Bonds are issued, Compounded Amounts therefor shall also be fixed in the subsequent resolution described above. All agreements between the Issuer and the paying agent for the Bonds shall incorporate applicable provisions from the commitment for the Bond Insurance policy. The Issuer shall provide the Bond Insurer notice of the resignation or removal of the paying agent and the appointment of any successor thereto. Notwithstanding any other provisions of this Section 2.03, the Issuer may, at its option,. prior to the date of issuance of any Bonds, elect to use an immobilization system or pure book-entry system with respect to issuance of the Bonds, provided adequate records will be kept with respect to the ownership of Bonds issued in book-entry form or the beneficial ownership of Bonds issued in the name of a nominee. Under such circumstances the Issuer is authorized to execute and deliver any letters of 'representation or completed eligibility questionnaires necessary to qualify for the book-entry program with The Depository Trust company, New York, New York, or any other recognized securities depositories, As long as any Bonds are outstanding in book-entry form, the provisions of Sections 2.04, 2.07 and 2.08 of this Resolution may not be applicable to such book-entry Bonds; and the provisions of this Section 2.03 may be modified as set forth in the resolution described in the succeeding sentence. The details of any alternative system of Bonds issuance, as described in this paragraph, shall be set forth in a resolution of the Board duly adopted at or prior to the sale of any of the Bonds. SECTION 2.04 EXECUTION OF BONDS. The Bonds shall be executed in the name of the Issuer by the Mayor of the Board and countersigned and attested by the Clerk of the Board, either manually or with their facsimile signatures, and its corporate seal or a facsimile thereof shall be affixed thereto or reproduced thereon. The Certificate of Authentication of the Bond Registrar shall appear on the Bonds, and no Bond shall be valid or obligatory for any purpose or be entitled to any security or benefit under this Resolution unless such certificate shall have been duly executed on such Bond. The authorized signature for the Bond Registrar shall be either manual or in facsimile; provided, however, that at least one of the above signatures,' including that of the authorized signature for the Bond Registrar, appearing on the Bonds, shall at all times be a manual signature. In case anyone or more of the officers who shall have signed or sealed any of the Bonds shall cease to be such officer of the Issuer before the Bonds so signed and sealed shall have been actually sold and delivered, such Bonds may nevertheles~be sold and delivered as provided in this Resolution and may be issued as if the person who signed or sealed such 11 3Z47/MON59001/AAO L- Bonds had not ceased to hold such office, Any Bonds may be signed and sealed on behalf of the Issuer by such person as at the actual time of the execution of such Bonds shall hold the proper office, although at the date of such Bonds such person may not have held such office or may not have been so authorized. If the Bonds are validated by the Circuit Court for Monroe county, Florida, a certification as to validation, in the form provided in Section 2.10 below, shall be executed with the facsimile signature of any present or future Mayor of the Issuer. SECTION 2.05 NEGOTIABILITY. The Bonds shall be and have all the qualities and incidents of negotiable instruments under the Uniform Commercial Code - Investment Securities Laws of the state of Florida, and each success~e Holder, in accepting any of the Bonds, shall be conclusively deemed to have agreed that such Bonds shall be and have all of the qualities and incidents of negotiable instruments under the laws of the State of Florida. S~ION 2.06 REGISTRATION. The Issuer shall, prior to the proposed date of delivery of the Bonds, by resolution of the Board designate the Bond Registrar and, if applicable, paying agent. The Bond Registrar shall be responsible for maintaining the books for the registration of and for the transfer of the Bonds and, if a bank is so designated, in compliance with a written agreement to be executed between the Issuer and such bank as Bond Registrar on or prior to the delivery date of the Bonds. Upon surrender to the Bond Registrar for transfer or exchange of any Bond, duly endorsed for transfer or accompanied by an assignment or written authorization for exchange, ~hichever is applicable, duly executed by the Registered Owner or his attorney duly authorized in writing, the Bond Registrar shall deliver in the name of the Registered OWner or the transferee or transferees, as the case may be, a new fully registered Bond or Bonds of authorized denominations and of the same maturity and interest rate and for the aggregate principal amount which the Registered Owner is entitled to receive; provided, however, that Current Interest paying Bonds may only be exchanged for new Current Interest paying Bonds and Capital Appreciation Bonds may only be exchanged for new Capital Appreciation Bonds. All Bonds presented for transfer, exchange, redemption or payment (if so required. by the Issuer or the Bond Registrar) shall be accompanied by a written instrument or instruments of transfer or authorization for exchange, in form and with guaranty of signature satisfactory to the Issuer or the Bond Registrar, duly executed by the Registered OWner or by his duly ~uthorized attorney. ~ 12 3Z47/MON59001/AAO .,''''..c.,__._._....#,_._.---.~''''._"......^'...,'f' III 1 .... -- The Bond Registrar from the Registered Owner or cover any tax, fee or other imposed in connection with any Such charges and expenses shall be delivered. or the Issuer may require payment transferee of a sum sufficient to governmental charge that may be exchange or transfer of the Bonds. be paid before any new Bond shall Interest on the Bonds shall be paid to the Registered Owners whose names appear on the books of the Bond Registrar as of 5:00 p.m. (eastern time) on the Record Date. New Bonds delivered be valid obligations of the the Bonds surrendered, shall shall be entitled to all of the same extent as the Bonds upon any transfer or exchange shall Issuer, evidencing the same debt as be secured ~y this Resolution, and the security and benefits hereof to surrendered. The Issuer and the Bond Registrar may treat the Registered Owner of any Bond as the absolute owner thereof for all purposes, whether or not such Bond shall be overdue, and shall not be bound by any notice to the contrary. Notwithstanding the foregoing provisions of this Section 2.06, the Issuer reserves the right, on or prior to the delivery of the Bonds, to amend or modify the foregoing provisions relating to registration of the Bonds in order to comply with all applicable laws, rules and regulations of the United States or the State of Florida relating thereto, including, particularly, any provision of such laws, rules and regulations as shall permit the use of unregistered instruments and coupons. The provisions of such instruments and coupons, if applicable, shall be set forth in a subsequent resolution of the Board. SECTION 2.07 DISPOSITION OP BONDS PAID OR REPLACED. whenever any Bond shall be d~livered to the Bond Registrar for cancellation, upon payment of the principal amount thereof, or for replacement, transfer or exchange, such Bond shall, after cancellation, either be retained by the Bond Registrar for a period of time specified in writing by the Issuer, or at the option of the Issuer, shall be destroyed by the Bond Registrar as authorized by law, and counterparts of a certificate of destruction evidencing such destruction shall be furnished to the Issuer. SECTION 2.08 BONDS MUTILATED, DESTROYED, STOLEN OR LOST. In case any Bond shall become mutilated, or be destroyed, stolen or lost, the Issuer, acting through the Bond Registrar, may in its discretion issue and deliver a new Bond of like tenor as the Bond so mutilated, destroyed, stolen, or lost, in exchange and substitution for such mutilated Bond, upon surrender and \ cancellation of such mutilated Bond or in lieu of and substitutio~ for the Bond destroyed, stolen or lost, and upon the Registered OWner furnishing satisfactory proof of his ownership and the loss thereof (if lost, stolen or destroyed) and indemnity 13 3Z.7/MOH.tOOl/AAO ~ L satisfactory to the Issuer, and complying with such other reasonable regulations and conditions as the Issuer may prescribe and paying (in advance if so required by the Issuer or the Bond Registrar) such taxes, governmental charges, attorneys fees, printing costs and other expenses as the Issuer and/or the Bond Registrar may charge and/or incur. All Bonds so surrendered shall be cancelled by the Bond Registrar. If any such Bond shall have matured or will mature within 45 days, instead of issuing a substitute Bond, the Issuer may pay the same, upon being indemnified as aforesaid, and if such Bond be lost, stolen or destroyed, without surrender thereof. Any such duplicate Bonds issued pursuant to this Section 2.08 shall constitute original contractual obligations on the part of the Issuer, whether or not the l08t, stolen or destroyed Bonds be at any time found by anyone, and such duplicate Bonds shall be entitled to equal and proportionate benefits and rights as to lien, source and security for payment, pursuant to this Resolution from the funds, as hereinafter pledged, to the same extent as all other Bonds issued under this Resolution. SECTION 2.09 PROVISIONS FOR RBDBMPTION AND MANDATORY TENDER FOR PURCHASE. The Bonds or any portions thereof shall be subject to mandatory and/or optional redemption or tender for purchase prior to their respective stated dates of maturity, at such times and in such manner as shall be determined by subsequent resolution of the Board adopted on or prior to the sale thereof. To the extent permitted by law, the Issuer may, at its option, assign the power to exercise its optional redemption or mandatory tender for purchase rights (the "Call Options") with respect to any Bonds, to third parties without the consent of any Registered Owner, under the terms and conditions as may be specified in the resolution described above; provided, however, that the Issuer shall not be liable for the failure of the purchaser of a Call Option to pay the redemption or purchase price of the Bonds that such purchaser has caused to be.redeemed or purchased. Notice of such redemption or mandatory tender for purchase (the "Notice of Redemption or Purchase") shall, at least 30 days, but not more than 60 days, prior to the redemption and/or tender date, be filed with the Bond Registrar and paying agent and be mailed, postage prepaid, by the Bond Registrar to the Bond Insurer and all Registered Owners of Bonds to be redeemed and/or tendered for purchase at their addresses as they appear of record on the books of the Bond Registrar; provided, however, that failure to mail such notice to a Registered Owner shall not render ineffective any proceedings for redemption and/or mandatory tender for purchase with respect to Bonds held by Registered OWners to whom notice was properly mailed. Interest shall cease to accrue on any Bond duly called for prior redemption and/or tendered for purchase on the redemption and/or tender date/fif payment thereof has been duly provided. The 14 3Z~7/MON't001/AAO l L_ privilege of transfer or exchange of any of the Bonds selected for redemption and/or mandatory tender for purchase shall be suspended. Furthermore, at least 2 business days in advance of mailing the Notice of Redemption or Purchase as specified above, the Bond Registrar shall send such Notice of Redemption or Purchase by certified mail, overnight mail/delivery service or telecopy to the securities depositories then in the business of holding substantial amounts of obligations of the type comprising the Bonds (such depositories currently The Depository Trust Company, New York, New York; Midwest Securities Trust Company, Chicago, Illinois; Pacific Securities Depository Trust Company, San Francisco, California; and Philadelphia Depository Trust Company, Philadelphia, Pennsylvania); and .at least 30 days prior to the redemption and/or tender date, mail such Notice of Redemption or Purchase to one or more national information services which disseminate notices of redemption of obligations such as the Bonds; provided, however, that failure to distribute such Notice of Redemption or Purchase to such depositories and national information services shall not render ineffective any calling of Bonds for prior redemption and/or mandatory tender of Bonds for purchase. Each Notice of Redemption or Purchase shall state the date of dissemination of such notice; the date of issue of the Bonds; the redemption and/or tender date; the redemption and/or purchase price; the place or places of redemption and/or tender (including the name and appropriate address or addresses of the paying agent); the dates of maturity and interest rates borne by the Bonds to be redeemed and/or purchased; the CUSIP number (if any) of the maturity or maturities to be redeemed and/or purchased; and, if less than all of any such maturity, the distinctive certificate numbers of the Bonds of such maturity to be redeemed and/or purchased, and, in the case of Bonds to be redeemed and/or purchased in part only, the respective portions of the principal amount thereof to be redeemed and/or purchased. Each such notice shall also state that on such date there will become due and payable on each of such Bonds, the redemption and/or purchase price thereof, or of such specified portion of the principal amount thereof in the case of a Bond to be redeemed in part only, together with interest accrued thereon to the redemption and/or tender date; and that from and after such redemption and/or tender date, interest thereon shall cease to accrue, and shall require that such Bonds be then surrendered at the address or addresses of the paying agent specified in the notice. Failure to include in such notice all of the information specified in this paragraph, shall not render ineffective any proceedings for the redemption and/or mandatory tender for purchase of Bonds. At 15 3247/MON59001/AAO l I I ---------- . --, SEcrION 2.10 FORM OF. BONDS. The text of the Bonds, together with the Certificate of Authentication of the Bond Registrar, shall be substantially of the following tenor, with such omissions, insertions and variations as may be necessary or desirable and authorized or permitted by this Resolution or any subsequent resolution adopted prior to the issuance thereof; or as may be necessary if the Bonds or a portion thereof are issued as Capital Appreciation Bonds or bear a variable rate of interest; or as may be necessary to comply with applicable laws, rules and regulations of the United states Government and the state of Florida in effect upon the issuance thereof: . ~ 16 3247/MON59001/AAO " l --d i ~ CUSIP: No. R- $ UNITED STATES OF AMERICA STATE OF FLORIDA MONROE COUNTY CARD SOUND ROAD AND BRIDGE IMPROVEMENT REVENUE BOND, SERIES 1993 RATE OF INTEREST MATURITY DATE DATE OF ORIGINAL ISSUE REGISTERED OWNER: PRINCIPAL SUM: . KNOW ALL MEN BY THESE PRESENTS, that Monroe County, Florida (the "County"), for value received hereby promises to pay to the Registered Owner designated above, or registered assigns, solely from the special funds hereinafter mentioned, on the Maturity Date specified above, the Principal Sum shown above, upon the presentation and surrender hereof at the corporate trust office of , as Paying Agent and Bond Registrar (collectively, the "Bond Registrar"), and to pay solely from such special funds interest hereon from the date of this bond or from the most recent interest payment date to which interest has been paid, whichever is applicable, until payment of such sum, at the rate per annum set forth above, payable on , and semiannually thereafter on 1 and 1 in each year (or if any such date is not a business day, then on the next business day thereafter), by check or draft mailed to the Registered Owner at his address as it appears at 5:00 P.M. (eastern time) on the fifteenth day of the month (whether or not a business day) preceding the, applicable interest payment date, on the registration books of the County kept by ,the Bond Registrar. The principal of, premium, if any, and interest on this Bond are payable in lawful money of the United States of America. This bond is one of an authorized issue of bonds issued to finance the cost of construction of improvements to the Card Sound Bridge facilities (the "Facilities") located in the County, under the authority of and in full compliance with the Constitution and Statutes. of the State of Florida, including particularly Chapter 125, Florida Statutes, Ordinance No. 056- 1988 of the County, and other applicable provisions of law, and a resolution duly adopted by the Board of County Commissioners of the County on , 1993, as [amended and] supplemented (collectively, the "ReSOlution"), and is subject to all the terms \ and conditions of such Resolution. '. 17 3247/HON59001/AAO . ...---:----..-~~,-,-.-~_"',.,.,.,:"."...,,".,,"'....,:.~,'...._.",._..,,"'..,.w,.-...___..~,._.'. L ... I . ~ This bond and the interest hereon are payable from and secured by a prior lien upon and pledge of the net revenues, derived by the Issuer from the operation of the Facilities, and certain investment income (collectively, the "pledged Funds"); all in the manner provided in the Resolution. It is expressly agreed by the Registered Owner of this bond that such Registered Owner shall never have the right to require or compel the levy of ad valorem taxes for the payment of the principal of and interest on this bond or for the making of any sinking fund or other payment specified in the Resolution. This bond and the indebtedness evidenced thereby shall not constitute an indebtedness of the County within the meaning of any constitutional or statutory provision or limitation, or a lien upon any other property of or in- the county, but shall constitute a lien only upon the Pledged Funds in the manner provided in the Resolution, (To be inserted where appropriate on face of bond: "REFERENCE ~S HEREBY MADE TO THE FURTHER PROVISIONS OF THIS BOND SET FORTH ON THE REVERSE SIDE HEREOF, AND SUCH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH ON THIS SIDE.") This bond may be transferred only upon the books of the County kept by the Bond Registrar upon surrender thereof at the principal office of the Bond Registrar with an assignment duly executed by the Registered Owner or his duly authorized attorney, but only in the manner, subject to the limitations and upon payment (in advance) of a sum sufficient to cover any tax, fee or governmental charge, if any, that may be imposed in connection with any such transfer, as provided in the Resolution. Upon any such transfer, there shall be executed in the name of the transferee, and the Bond Registrar shall deliver, a new registered bond or bonds of authorized denominations and in the same aggregate principal amount, series, maturity and interest rate as this bond. In like manner, subject to such conditions and upon the payment (in advance) of a sum sufficient to cover any tax, fee or governmental charge, if any, that may be imposed in connection with any such exchange, the Registered OWner of any bond or bonds may surrender the same (together with a written instrument of transfer satisfactory to the Bond Registrar duly executed by the Registered Owner or his duly authorized attorney) in exchange for an equal aggregate principal amount of fully registered bonds in authorized denominations and of the same series, maturity and interest rate as this bond. I It is hereby certified and recited that lall acts, conditions aid things required to exist, to bappen'and to be perfo~d precedent to and in the issuance of this bond exist, have happened and have been performed in regular and due form and 18 3247/MONse001/AAO l L_ time as required by the statutes and Constitution of the state of Florida applicable thereto; and that the issuance of this bond and of the issue of bonds of which this bond is one, does not violate any constitutional or statutory limitation. (Insert redemption and/or mandatory tender for purchase provisions) . Notice of such redemption [and mandatory tender for purchase] shall be given in the manner and to the extent required by the Resolution. This bond is and has all the qualities and incidents of a negotiable instrument under the Uni~orm Commercial Code- Investment Securities Laws of the state of Florida. This bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Resolution until the certificate of authentication hereon shall have been executed by the Bond Registrar. IN WITNESS WHEREOF, Monroe County, Florida, has issued this bond and has caused the same to be executed by the Mayor of its Board of County Commissioners and attested and countersigned by the Clerk of such Board, either manually or with their facsimile signatures, and the corporate seal of such Board or a facsimile thereof to be affixed, impressed, imprinted, lithographed or reproduced hereon, all as of the first day of , 1993. MONROE COUNTY, FLORIDA (SEAL) Mayor, Board of County Convnissioners ATTESTED AND COUNTERSIGNED: Clerk, Board of county Commissioners ~ 19 aa.7/NOH.IOOl/AAO L BOND REGISTRAR'S CERTIFICATE OF AUTHENTICATION This bond is one of the bonds of the issue described in the Resolution. As Bond Registrar By: Authorized Signature Date of Authentication: . VALIDATION CERTIFICATE This bond is one of a series validated and confirmed by judgment of Monroe County, Florida, rendered on of bonds which were the Circuit Court for , 19 Mayor, Board of County Commissioners, Monroe County, Florida The following abbreviations, when used in the inscription on the face of the'within bond, shall be construed as though they were written out in full according to applicable laws or regulations: TEN COM - as tenants in UNIF GIF/TRANS MIN ACT- common (Cust. ) TEN ENT - as tenants by the Custodian for entireties (Minor) JT TEN - as joint tenants with under Uniform Gifts/Transfers right of survivorship to Minors Act of and not as tenants in (state) common Additional abbreviations may also be used though not in list above. ... 20 3247/MON5g001/AAO ~-'"-"''''''----'-''''''''--,,.,,--,,,,.,.....--..-,..,....,,.~,----...,,,...,.,.....~ '. L '"----- ASSIGNMENT FOR VALUE RECEIVED, the undersigned sells, assigns and transfers to (PLEASE INSERT NAME, ADDRESS AND SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE) the within bond and does hereby irrevocably appoint to transfer the bond on the books kept with full power of substitution in the constitute and as his agent for registration thereof, premises. Dated: . Signature guaranteed: NOTICE: The signature to this assignment must correspond with the name of the Registered Owner as it appears upon the face of the within bond in every particular, without alteration or enlargement or change whatever. (Bank, Trust Company or Firm) (Authorized Officer) ~ 21 3247/NON5t.Dl/AA. L. ARTICLE III APPLICATION OF BOND PROC-'...., SECTION 3.01 proceeds, including received from the sale applied by the Issuer purchaser thereof, as APPLICATIONOP 80RD PRC) D.v$. The accrued interest and premium, if any, of any or all of the Bonds, shall be simultaneously with their delivery to the follows: A. Accrued shall be deposited in be used only for the the Bonds. interest and capitalized interest, if any, the Sinking Fund, herein created, and shall purpose of paying interest becoming due on . B. A sum which, together funds of the Issuer deposited in created, on the date of delivery Reserve Account Requirement, shall Account. with other legally available the Reserve Account, herein of the Bonds, will equal the be deposited into the Reserve C. To the extent not paid or reimbursed therefor by the original purchaser of the Bonds, the Issuer shall pay all costs and expenses in connection with the preparation, issuance and sale of the Bonds, including the premiums for the Bond Insurance policy and bond reserve insurance, if applicable. D. The remaining proceeds derived from the sale of the Bonds, plus any legally available funds contributed by the Issuer for the payment of Project costs and any funds received by the Issuer from any agency or instrumentality of the United States (collectively, the "Additional Project FundS") shall be deposited as received in the Construction Fund, herein created. The Construction Fund shall be continuously secured in the same manner as county deposits are authorized to be secur~d by the laws of the State of Florida. The money therein, to the extent not required to be rebated to the United states Treasury, shall be used only for the payment of the cost of the Project, but, pending such application, may be invested as provided in Section 4.03J hereof. The Issuer shall maintain appropriate accounting records or entries sufficient to trace the Additional Project Funds and any investment thereof. Any funds remaining in the Construction Fund after completion of the Project, not required to pay costs of the Project or to be rebated to the United States Treasury, shall, to the extent permitted by law, be deposited into the Sinking Fund and be used for the open market purchase or redemption of Bonds. E. All such money disbursed in accordance with this Section 3.01 shall be and constitute trust funds for such purposes and, to the extent not required to be rebated to the united stat~ Treasury, there is hereby cre.ted a lien in favor of the Holders of the Bonds upon such money until 80 applied. 22 3Z47/MON5.001/AAO i -----..~ ARTICLE IV SECURITY FOR BONDS; CREATION OF FUNDS AND ACCOUNTS; APPLICATION OJ!' REVENUES SECTION 4.01 SECURITY FOR BONDS. secured as follows: The Bonds shall be A. PLEDGED FUNDS. Neither the Bonds nor the interest thereon shall be or constitute a general indebtedness of the Issuer within the meaning of any constitutional.or statutory provision or limitation, but shall be payable from and secured by a lien upon and a pledge of the Pledged Funds as provided below. No Holder or Holders of any Bonds iss~d hereunder shall ever have the right to require or compel the exercise of the ad valorem taxing power of the Issuer or taxation in any form of any property therein for payment thereof, or be entitled to payment of such principal and interest from any other funds of the Issuer, except from the Pledged Funds in the manner provided herein. Until payment has been provided as herein permitted, the payment of the principal of and interest on the Bonds, and all other payments required by this Resolution, shall be secured forthwith equally and ratably by an irrevocable prior lien on the Pledged Funds, and the Issuer does hereby irrevocably pledge and grant a prior lien upon the same for such purposes. B. NON AD VALOREM REVENUES. The Issuer covenants with the Registered Owners of the Bonds that it will budget and appropriate in each Fiscal Year, from Non Ad Valorem Revenues, to the extent the Pledged Funds are insufficient therefor, sufficient money to pay the Debt Service Requirement on the Bonds, and to make any deposit into the Reserve Account as required by Section 4.03F below. This covenant shall not be deemed a pledge of or creation of a lien upon all, or any particular source, of the Non Ad Valorem Revenues, and the Issuer shall be entitled to issue obligations from time to time secured by a lien upon and pledge of all, or any source of, the Non Ad Valorem Revenues; provided, however, that the Issuer shall not encumber its Non Ad Valorem Revenues to the extent that the Issuer shall be unable to make the payments, if any, required to be made hereunder form such Non Ad Valorem Revenues. SECTION ".02 CREATION OJ!' FUNDS AND ACCOUNTS. The following Funds and Accounts are hereby created and established: the Revenue Fund, the Operation and Maintenance Fund, the Sinking Fund (including the Reserve Account and the Bond Amortization Account therein), the Renewal, Replacement and Improvement Fund, the Construction Fund, the Business Interruption Reserve Fund and the Enterprise Reserve Fund. .. 23 3Z47/MONSg001/AAO I L A. TRUST FUNDS. The Funds and Accounts created and established above and any other special funds and accounts created and established by this Resolution shall constitute trust funds for the purposes provided herein for such funds and accounts, and shall be kept separate and distinct from all other funds of the Issuer and used only for the purposes and in the manner provided by this Resolution. All such Funds and Accounts shall be continuously secured in the same manner as county deposits are authorized to be secured by the laws of the state of Florida. B. GOVERNMENT ACCOUNTING EFFECT. The cash required to be accounted for in each of the Funds and Accounts established herein may be deposited in a single bank account, provided that . adequate accounting records are maintained to reflect and control the restricted allocation of the cash on deposit therein for the various purposes of such Funds and Accounts. The designation and establishment of the various Funds and Accounts in and by this Resolution shall not be construed to require the establishment of any completely independent, self-balancing funds, as such term is commonly defined and used in governmental accounting, but rather is intended solely to constitute an earmarking of Pledged Funds for certain purposes and to establish certain priorities for application of such Pledged Funds as specified by this Resolution. SECTION 4.03 APPLICATION OF RBVENUBS. For as long as any of the principal of and interest on any of the Bonds shall be outstanding and unpaid, or until payment has been provided for as permitted by this Resolution, or until there shall have been set apart in the Sinking Fund (including the Bond Amortization Account and the Reserve Account therein), a sum sufficient to pay when due the entire principal of the Bonds remaining unpaid, together with interest accrued or to accrue thereon, the Issuer covenants with the Holders of ~ny and all Bonds as follows: A. REVENUE FUND. The Revenues shall be deposited, as received, in the Revenue Fund and shall be disposed of on or before the 25th day of each month, commencing in the month immediately following the delivery of the Bonds, only in the following manner and in the following order of priority; provided, however, that disposition of any state and federal grants comprising a portion of the Revenues shall not be in violation of any applicable state and federal laws and regulations that pertain to such grants. B. OPERATION AND MAINTENANCE FUND. Revenues shall first be deposited into the Operation and Maintenance Fund in an amount sufficient to pay 1/12th of the annual amount contained in the duly adopted operational budget for the Facilities, as \ described in Section 5.01 hereof, plus any additional amounts as may be requi~ed for operation and maintenance expenditure. 24 3247/MONSI001/AAQ L C. SINKING FUND. Revenues shall next be applied and allocated to the Sinking Fund in such sums as will be sufficient to pay 1/6th of all interest becoming due on the CUrrent Interest Paying Bonds on the next semiannual interest payment date therefor, plus the amount of any prior deficiencies (if Bonds with a variable rate of interest are outstanding, the Issuer shall deposit in lieu of the 1/6th interest deposit described above, the interest actually accruing on such Bonds for such month, assuming the interest rate thereon on the first day of such month will continue through the end of such month, plus any deficiencies in interest deposits for the preceding month); 1/6th or 1/12th, as the case may be, of all principal maturing on the CUrrent Interest paying Serial Bonds on the next maturity date, plus the amount of any prior deficiencies; and 1/6th or 1/12th, as the case may be, of the Compounded Amount next becoming due on any Capital Appreciation Serial Bonds whether by reason of maturity or earlier redemption thereof; plus the amount of any prior deficiencies; and an amount sufficient to pay the fees and charges of the Bond Registrar and paying agents. In the event the first interest payment date or first principal maturity date shall occur,either more or less than 6 months or 12 months, as the case may be, after the delivery of any of the Bonds, then the payments required above shall be adjusted accordingly to provide for the payment of such principal and interest. D. BOND AMORTIZATION ACCOUNT. On a parity with the payments required by Section 4,03C above, Revenues shall simultaneously be applied and allocated to the Bond Amortization Account, to the extent required, in such sums as will be equal to 1/12th of the Amortization Installment required to be made on the next annual payment date for Term Bonds, plus the amount of any prior deficiencies. Such allocations shall be credited to a separate special account for each series of Term Bonds outstanding, and if there shall be more than one stated maturity for Term Bonds of a series, then into a separate special account in the Bond Amortization Account for each such separate maturity of Term Bonds. Upon the sale of any Term Bonds, the Issuer shall, by resolution of the Board, establish the amounts and maturities of such Amortization Installments, and if there shall be more than one maturity of Term Bonds, the Amortization Installments for the Term Bonds of each maturity. Credit shall be allowed against the total interest, Amortization Installment and principal due on the next interest and principal payment dates, respectively, for any other funds on hand and available for such purposes in the Sinking Fund and Bond Amortization Account. Account purchase of Term Money held for the credit of the Bond Amortization sha}l be applied to the redemption or open market (at not exceeding the price of par and accrued interest) Bonds in accordance with the mandatory redemption 25 3Z47/NON,e001/AAO ~.' . provisions and/or the schedule of Amortization Installments for such Term Bonds. Amortization Installments for any Term Bonds shall be reduced on a reasonably proportionate basis to the extent that such Term Bonds are purchased in the open market, or shall be adjusted as otherwise approved by the County Administrator of the Issuer. The Issuer shall pay from the Sinking Fund all expenses in connection with such purchase or redemption. E. RESERVE ACCOUNT. Revenues shall then be applied by the Issuer to maintain in the Reserve Account a sum equal to the Reserve Account Requirement. Such sum shall initially be deposited therein from the proceeds of the sale of the Bonds. Any withdrawals from the Reserve Account ~all be restored within 12 months by depositing therein an amount equal to 1/12th of such withdrawal. No further payments shall be required to be made into the Reserve Account when there has been deposited therein and as long as there shall remain on deposit therein a sum equal to the Reserve Account Requirement. The Authorized Investments on deposit in the Reserve Account shall be valued annually on the last day o~ the Fiscal Year in accordance with generally accepted accounting practice. Money in the Reserve Account shall be used only for the purpose of the payment of maturing Amortization Installments or principal of or interest on the Bonds when the other money allocated to the Sinking Fund and Bond Amortization Account is insufficient therefor, and for no other purpose. However, if and whenever the money applied and allocated to the Reserve Account exceeds the Reserve Account Requirement on all then outstanding Bonds, such excess shall be withdrawn and deposited into the Sinking Fund. F. COMPLETION OF FUNDING REQUIREMENT. The Issuer shall not be required to make any further applications or allocations to the Sinking Fund (including the Bond Amortization Account and the Reserve Account therein) as long as the aggregate sums applied and allocated thereto are and remain at least equal to the sum of all of the annual Debt Service Requirements then due and becoming due in all ensuing years for the Bonds then outstanding, plus the amount of redemption premiums, if any, then due and thereafter to become due on the Bonds then outstanding by operation of the Bond Amortization Account. G. SUBORDINATE BONDS. Revenues shall next be applied to pay 1/6th or 1/12th, as the case may be, of the principal, mandatory term bond amortization installments, redemption premiums, if applicable, and interest due on the next applicable payment date for bonds, the payment of which is secured by a lien upon the Pledged Funds junior, subordinate and inferior to the \ lien thereon in favor of the Registered Owners of the Bonds. !I 26 3247/MON51001/AAO L H. RENEWAL, REPLACEMENT AND IMPROVEMENT FUND. Revenues shall then be applied and allocated to the Renewal, Replacement and Improvement Fund in an amount equal to $16,666.67 until there shall be on deposit therein $200,000. If the consulting Engineers shall have recommended in writing a different amount for anticipated requirements for renewals, replacements, extensions and additions to the Facilities, and the Issuer subsequently approves such recommendation, the foregoing monthly deposits shall be adjusted as appropriate to ensure accumulation of such revised amount within twelve months. The money in the Renewal, Replacement and Improvement Fund shall be used only for the purpose of paying the cost of extensions, improvements or additions to, or the replacement of capital assets of the Facilities or for repairs thereto, except that the money in such Fund shall first be used to. supplement the Reserve Account whenever necessary to prevent a default in the payment of principal, Amortization Installments and interest on the Bonds, and to restore any deficiency in the Reserve Account. I. BALANCE OF REVENUES. Thereafter the balance of any Revenues re~aining after the above required payments have been made shall be deposited into the Enterprise Reserve Fund and be used, first, to fund any deficiencies in the payments required in paragraphs B, C, D, E and H above, and any withdrawals from the Business Interruption Reserve Fund, and, then, in the discretion of the Issuer, for either (1) the open market purchase of bonds, the payment of which is secured by the Pledged Funds, or (2) the payment of any other expenditures with respect to the Facilities. J. INVESTMENT AND DISPOSITION OF INVESTMENT INCOME. . Revenues on deposit in the Revenue Fund, the Operation and Maintenance Fund, the Sinking Fund (including the Bond Amortization Account, but excluding the Reserve Account therein), the Renewal, Replacement and Improvement Fund, the Construction Fund and the Enterprise Reserve Fund may be invested and reinvested only in Authorized Investments maturing not l~ter than the date on which the money therein will be needed. The Revenues in the Reserve Account and the B~siness Interruption Reserve Fund may be invested and reinvested in Authorized Investments, provided such investments mature not later than the final maturity date of the Bonds. Any and all income received by the Issuer from such investments of Revenues in the above Funds and Accounts (excluding the Reserve Account, the Construction Fund and the Enterprise Reserve Fund) shall be deposited into the Sinking Fund. Income received from the investment of money on deposit in the Enterprise Reserve Fund shall remain on deposit therein. Income received from the investment of money on deposit in the Reserve Account shall remain in the Reserve Account unless it is fully funded, in which case such income shall be deposited into the Sinking Fund on the next business day following the \ receipt thereof. Income received from the investment of money on deposit in tge Construction Fund shall remain on deposit therein pending completion of the Project, and thereafter shall be deposited into the Sinking Fund. All investments of money on 27 3Z47/MON'IOOl/AAO L deposit from time to time in the Funds and Accounts created and established by this Resolution, including the Federal Securities specified in Section 6.06 below, shall be valued at the cost thereof. :K. APPLICATION OF NON AD VALOltBM RBVBMUBS. Non Ad valorem Revenues shall be used and applied in each month to (1) make the deposits into the Sinking Fund (including the Bond Amortization Account and the Reserve Account therein), pursuant to this Section 4.03, paragraphs C, D and E, above, when the Pledged Funds are insufficient therefor; and (2) to make the additional deposit into the Business Interruption Reserve Fund, as required by paragraph L below; provided, that any such Non Ad valorem Revenues, together with interest thereon, shall be restored to the funds and accounts of th~ Issuer from which such Non Ad Valorem Revenues were withdrawn, from the first available Pledged Funds, after the making of the required payments pursuant to paragraphs C, D, E, G and H above. L. BUSINESS INTERRUPTION RESERVE FUND. On the date of issuance of the Bonds, the Issuer will deposit from the FY 1993 capital oublay Card Sound Bridge infrastructure appropriations, into the Business Interruption Reserve Fund, an amount equal to 2.0 times the Maximum Debt Service Requirement. If in any subsequent year, the Issuer obtains business interruption insurance, as described and under the terms specified in Section 5.06 below, the amount on deposit in the Business Interruption Reserve Fund shall be reduced to an amount equal to the Maximum Debt Service Requirement, and the excess shall be deposited into the Enterprise Reserve Fund. Money on deposit in the Business Interruption Reserve Fund shall be used only for the purpose of the payment of maturing Amortization Installments or principal of or interest on the Bonds when the other money allocated to the Sinking Fund (including all accounts therein) is insufficient therefor, and for no other purpose. If the money on deposit in the Business Interruption Reserve Fund exceeds the amount required by this paragraph L, such excess shall be withdrawn and deposited into the Enterprise Reserve Fund. Any withdrawals from the Business Interruption Reserve Fund shall be restored from the Enterprise Reserve Fund as soon as practicable. SECTION (.o( UNCLAIMED MONEY. Notwithstanding any provisions of this Resolution, any money held by the paying agent for the payment of the principal or redemption price of, or interest on, any Bonds and remaining unclaimed for 5 years after the applicable date or dates when such principal, redemption price or interest has become due and payable (whether at maturity, call for redemption or otherwise), if such money were so held at such date or dates, or 5 years after the date or dates of deposit of such money if deposited after such date or dates, shall be repaid to the Issuer free from the provisions of this \ Resolution, and all liability of the paying agent with respect to such money shall thereupon cease; provided, however, that before the repayment of such money to the Issuer as aforesaid, the 28 3247/MON~9001/AAO ~ Issuer first publish at least once in a financial newspaper or journal published and/or of general circulation in New York, New York, a notice, in such form as may be deemed appropriate by the Issuer with respect to the Bonds so payable and not presented, or unclaimed interest thereon, and with respect to the provisions relating to the repayment to the Issuer of the money held for the payment thereof. . ~ 29 3Z47/NQM,tOOl/AAO L. ARTICLE V CERTAIN COVENANTS WITH BONDHOLDBRS; ADDITIONAL PARITY BONDS; RBMBDIBS SECTION 5.01 COMPLETION AND OPERATION OF PROJECT; ANNUAL BUDGET. The Issuer will complete the Project with all practicable dispatch; will maintain or cause to be maintained the Facilities and all parts thereof in good condition; and will operate or cause to be operated the same in an efficient and economical manner, making or causing to be made such expenditures for equipment and for renewals, repairs and replacements as may be proper for the economical operation and maintenance thereof. . The Issuer shall annually prepare and adopt, or cause to be prepared and adopted, on or prior to the beginning of such Fiscal Year, a detailed budget of the estimated income and expenditures for operation and maintenance of the Facilities during such next succeeding Fiscal Year. The Issuer shall mail a copy of sucp annual budget to the Bond Insurer and shall make such annual budget available for inspection and copying at reasonable times by any Holder or Holders of Bonds, upon request therefor. SECTION 5.02 RATE COVENANT. The Issuer will fix, establish and maintain such rates and will collect such tolls, fees, rentals and other charges for the use of the Facilities and revise the same from time to time, whenever necessary, as will always provide Gross Revenues in each Bond Year sufficient (1) to pay 100% of the Cost of Operation and Maintenance, 120% of the current Debt Service Requirement, and 100% of all Reserve Account payments, and (2) to pay 100% of the Cost of Operation and Maintenanc~100% of the current Debt Service Requirement, and 100% of all Reserve Account and Renewal, Replacement and Improvement Fund payments; provided, however, that the payments specified in clauses (1) and (2) shall not be cumulative to the extent the payment categories are the same. Such rates, tolls, fees, rentals and other charges shall not be reduced so as to be insufficient to provide Gross Revenues for such purposes. The Issuer further covenants and agrees that it will annually within a reasonable time after adoption of the budget described in Section 5.01 hereof, revise such rates, tolls, fees, rentals and other charges for the use of the Facilities to the extent necessary to comply with the rate covenant contained in the preceding paragraph. The Issuer will not reduce its schedule of rates, tolls, fees, rentals and other charges unless (1) the Issuer is not in I breach of any covenant or provision of this Resolution, (2) all required pay~ents under this Resolution have been made in full, and (3) the Accountant or Consulting Engineer certifies that the 30 3247/MON5e001/AAO L proposed reduced schedule will in each Bond Year to comply payments under this Resolution, SECTION 5.03 ACCOUNTING RECORDS. The Issuer shall maintain separately identifiable accounting records for the operation of the Facilities by the use of an "enterprise fund," as such term is commonly used in governmental accounting, and any Bondholder and the Bond Insurer (if the outstanding Bonds are then covered by a Bond Insurance policy) shall have the right at all reasonable times to inspect all records, accounts and data of the Issuer relating thereto. provide sufficient Gross Revenues with all covenants and required SECTION 5.04 ANNUAL AUDIT. The Issuer shall after the close of each Fiscal Year, cause the boo~, records and accounts relating to the Revenues and the Facilities to be properly audited by a recognized Accountant, and shall require the Accountant to complete its audit report within one year after the close of the Fiscal Year. Such audit shall contain, but not be limited to, the financial statements and reports required by generally accepted accounting principles applicable to governmental units. A certificate by the Accountant shall accompany the annual audit stating that no breach on the part of the Issuer of any covenant herein has been disclosed by reason of such audit or, alternatively, specifying in reasonable detail the nature of such breach, after discussing the same with bond counsel to the Issuer. A copy of such annual audit shall be mailed to the Bond Insurer and shall be made available, at all reasonable times, for inspection by any Bondholder, upon request therefor. SECTION 5.05 MORTGAGE OR SALE OF THE FACILITIES. As long as any of the Bonds are outstanding, the Issuer covenants not to sell, lease, encumber or in any manner dispose of the Facilities as a whole. The Issuer may sell or dispose of, for fair market value, any properties or parts of the Facilities if the Consulting Engineer certifies in writing that (1) such properties or parts of the Facilities are not necessary for the continued operation of the Facilities and (2) the sale or disposal of such properties or parts of the Facilities will not adversely affect the Revenues to such an extent that the Issuer will fail to comply with the covenants of this Resolution, and particularly the rate covenant contained in Section 5.02 hereof; provided, however, the Issuer shall have and hereby expressly reserves the right to sell, lease or otherwise dispose of any of the other property comprising a part of the Facilities, not in excess of 10% of the book value of the fixed assets of the Facilities according to the most recent annual audit, that it shall, in its sole discretion, determine to be no longer necessary or useful for the continued operation of the Facilities. The Issuer shall obtain the prior approval of the Bond Insurer for the sale of any part of the Facilities in excess of $100,000. 31 3247/MON59001/AAO I L The proceeds derived from any properties or parts of the Facilities paragraph shall, in the discretion deposited in the Renewal, Replacement used for the purposes of such Fund, or or retirement of the Bonds. sale or disposal of any as described in the above of the Issuer, be (1) and Improvement Fund and (2) used for the purchase SECTION 5.06 INSURANCE. For so long as any of the Bonds are outstanding, the Issuer will make adequate provision to maintain adequate fire and windstorm insurance on all buildings and structures of the works and properties of the Facilities which are subject to loss through fire or windstorm; public liability insurance; and other insurance of such types and in such amounts as are normally carried in the operation of facilities similar to the Facilities withtn the state of Florida, for all of which insurance the Issuer may be a self-insurer to the extent permitted by law. Furthermore, as set forth in Section 4.03L above, the Issuer shall in each year attempt to obtain business interruption loss insurance in an amount equal to the Maximum Debt Service Requirement, at a price deemed reasonable )by the Issuer. A copy of such policy, or certificate of insurance with respect to such policy, shall be sent to the Surveillance Department, or comparable department, of the Bond Insurer in each year during which such policy is in force. Any such insurance shall be placed with nationally-recognized and reputable insurers or under authorized self-insurance programs, or any combination thereof, and shall be carried for the benefit of the Holders of the Bonds. All money received for losses under any of such insurance, except public liability and for de minimus items which are not integral for the operation of the Facilities and which are not revenue-producing, are hereby pledged by the Issuer as security for the Bonds, until and unless such proceeds are used to remedy the loss or damage for which such proceeds are received, either by repairing the property damaged or replacing the property destroyed as soon as practicable after the receipt of such proceeds. SECTION 5.07 NO FREE SERVICE. The Issuer will not render, allow or cause to be rendered, any free services of any nature by its Facilities. Such covenant shall not prevent the classification of users according to volume or frequency of use, or the use of toll ticket booklets, tokens or electronic toll collection methods for such class or classes of users. The Issuer, including its departments, agencies and instrumentalities, shall avail itself of the services provided by the Facilities, or any part thereof, ~nd the same rates, fees or charges applicable to other customers receiving like services under similar circumstances shall be charged to the Issuer and any such department, agency or instrumentality. Such charges shall be paid as they accrue, and the Issuer shall transfer from its relevant funds sufficient sums to pay such charges. The revenues so received shall be deemed to be Revenues derived from the operati&n of the Facilities, and shall be deposited and accounted for in the same manner as other Revenues derived from such operation of the Facilities. 32 3247/MON59001/AAO L SECTION 5.08 CONSULTING ENGINEERS AND QUALIFIED INDEPENDENT CONSULTANTS. The Issuer will retain Consulting Engineers and Qualified Independent Consultants from time to time as needed to perform the duties set forth herein. SECTION 5.09 NO COMPETING FACILITIES. Except with respect to the Jewfish Creek Bridge and approach road, the Issuer, to the full extent permitted by law, will not grant, or cause, consent to, or allow the granting of, any franchise or permit to any person, firm, corporation or body, or agency or instrumentality whatsoever, for the furnishing of services which will materially compete with those of the Facilities. SECTION 5.10 ENFORCEMENT OF 9JLLECTIONS. The Issuer will diligently enforce and collect the Revenues herein pledged; will take all reasonable steps, actions and proceedings for the enforcement and collection of such Revenues to the full extent permitted or authorized by law; and will maintain accurate records with respect thereof. All such Revenues herein pledged shall, as collected, be held in trust to be applied as herein provided. SECTION 5.11 NO IMPAIRMENT OF CONTRACT. The Issuer has full power and authority to covenant to budget and appropriate in each Fiscal Year, from Non Ad Valorem Revenues, to the extent the Pledged Funds are insufficient therefor, sufficient money to pay the Debt Service Requirement on the Bonds, and to make any deposit into the Reserve Account as required by Section 4.03E above. The covenant to budget and appropriate such amounts, if any, from Non Ad Valorem Revenues, in the manner provided herein, shall not be subject to repeal, modification or impairment by any subsequent resolution, ordinance or other proceedings of the Issuer, unless the Issuer shall have either (1) provided such additional or supplemental funds which shall be sufficient to retire such Bonds and the ipterest thereon in accordance with their terms or (2) obtained the required written consent of the requisite number of Bondholders, or the consent of the Bond Insurer, as applicable, as set forth in Section 6.01 hereof, to modify such covenant to budget and appropriate. SECTION 5.12 ISSUANCE OF ADDITIONAL OBLIGATIONS. Except as provided below, the Issuer. hereby covenants and agrees not to incur any other obligations or indebtedness payable from the Net Revenues, unless such obligations contain an express statement that such obligations are junior and subordinate in all respects to the Bonds. herein authorized as to lien on and source and security for payment from the Net Revenues. No Additional Parity Bonds, payable on a parity from the Net Revenues with the Bonds, herein authorized, shall be issued after the issuance of any Bonds, herein authorized, except for the construction and \ acquisition of additions, extensions and improvements to the Facilities ~r for refunding purposes, and except upon the conditions and in the manner provided below. 33 3247/MONS'OGl/AAO L-. (1) There shall have been obtained and filed with the Issuer a certificate of an Accountant or Consulting Engineer: (a) stating that the books and records of the Issuer relating to the collection and receipt of Revenues have been reviewed by him; (b) stating that the Net Revenues for 12 consecutive months immediately preceding the proposed date of delivery of such Additional Parity Bonds with respect to which such certificate is made, equal at least 1.20 times the Maximum Debt Service Requirement on (i) all Bonds and all Additional parity Bonds, if any, then outstanding and (ii) the Additional parity Bonds with respect to which such certificate is made. (2) Each resolution authorizing the issuance of Additional parity Bonds will recite that all of the covenants herein contained applicable to the Additi~nal parity Bonds, will be applicable to such Additional parity Bonds. (3) The Issuer shall not be in breach and obligations assumed hereunder, and all required to have been made into the Funds provided hefeunder, shall have been made to required. of the covenants payments herein and Accounts, as the full extent (4) The Issuer shall not be required to comply with the requirements of paragraph (1) above with respect to any Additional parity Bonds issued for the sole purpose of refunding a portion of the outstanding Bonds. (5) No Additional parity Bonds bearing interest at a variable rate per annum may be issued. (6) Furthermore, no additional obligations of the Issuer to be secured by all or any portion of the Non Ad Valorem Revenues ("Specific Lien Debt") or a covenant to budget and appropriate from Non Ad-valorem Revenues ("Budget Covenant Debt" and collectively with Specific' Lien Debt, "Non Ad Valorem Debt") shall be issued unless the following conditions are met: (a) The average of the total Non Ad Valorem Revenues in the preceding 2 Fiscal Years must equal or exceed 2 times the maximum annual debt service on all outstanding and proposed Non Ad Valorem Debt. (b) The total Non Ad Valorem Revenues for the preceding Fiscal Year, less (i) the debt service on outstanding and proposed Specific Lien Debt for the next Fiscal Year, and (ii) the Non Ad Valorem Revenue Share of Essential Services Expenditures, must be at least 1.1 times the maximum annual debt service on all outstanding and proposed Budget Covenant Debt. The term "Non Ad Valorem Revenue Share of Essential Services EXRenditures" shall be deter.mined by multiplying the total cost of Essential Services for the preceding Fiscal Year by a fraction, the numerator of which is the total Non Ad valorem 34 3247/MON5g001/AAO L-. Revenues for the preceding Fiscal Year and the denominator of which is total revenues for the preceding Fiscal Year. The term "Essential Services" shall include the total expenditures by the Issuer for public safety and general governmental purposes as reported in the annual audited financial statements of the Issuer, or, if such audited financial statements are unavailable, in other financial records of the Issuer. SECTION 5.13 REMEDIES. Any trustee or any Holder of Bonds acting for the Holders of all Bonds may by suit, action, mandamus or other proceedings in any court of competent jurisdiction, protect and enforce any and all rights, including the right to the appointment of a recei.er, existing under the laws of the state of Florida, or granted and contained herein, and may enforce and compel the performance of all duties herein required or by any applicable statutes to be performed by the Issuer or by any officer thereof. Nothing herein, however, shall be construed to grant to any Holder of such Bonds any-lien on any property of, or within the corporate boundaries of the Issuer, except as provided herein. No Holder of Bonds, however, shall have any right in any manner whatever to affect, disturb or prejudice the security of this Resolution or to enforce any right hereunder except in the manner herein provided, and all proceedings at law or in equity shall be instituted and maintained for the benefit of all Holders of Bonds. If any payments of Debt Service Requirements are made by a Bond Insurer with respect to Bonds which have not been defeased in accordance with the provisions of Section 6.06 hereof, the lien upon and pledge of the Net Revenues and all covenants and other obligations of the Issuer to the Holders of such Bonds shall continue to exist and the Bond Insurer shall be subrogated to the rights of the Holders of such Bonds. SECTION 5.14 TAX EXEMPTION; QUALIPIED TAX-EXEMPT OBLIGATION DESIGNATION. The Issuer at all times while the Bonds and the interest thereon are outstanding will comply with the requirements of the Code to the extent necessary to preserve the exemption from federal income taxation of the interest on the Bonds. The chief financial officer of the Issuer, or his designee, is authorized to make or effect any election, selection, choice, consent, approval or waiver on behalf of the Issuer with respect to the Bonds as the Issuer is required to make or give under the federal income tax laws, for the purpose of assuring, enhancing or protecting favorable tax treatment or characterization of the Bonds or interest thereon or assisting compliance with requirements for that purpose, reducing the burden or expense of such compliance, reducing the rebate amount or payments of penalties thereon, or making payments in lieu thereof, or pbviating such amounts or payments, as determined by such officer, or his designee. Any action of such officer, or 35 3247/NON59001/AAO :!::>., ..~" :. ~ L his designee, in that regard shall be in writing and signed by the officer, or his designee. Furthermore, the Issuer hereby designates the Bonds, to the extent issued, as "qualified tax- exempt obligations" as described in section 265 of the Code. SECTION 5.15 PAYMENT OF BONDS. The Issuer will duly and timely payor cause to be paid from the Net Revenues, the principal of, redemption premiums, if any, and interest on the Bonds, when due, by transferring money in the required amounts from the Funds and Accounts created herein to the principal office of the paying agent at least one business day prior to the date on which such payments of principal, premium and interest are due. . ~ 36 12.7/NONIIOOl/AAO ---------- ARTICLE VI MISCELLANEOUS PROVISIONS SECTION 6.01 MODIFICATION OR AMENDMENT. No adverse material modification or amendment of this Resolution or of any ordinance or resolution amendatory hereof or supplemental hereto may be made without the consent in writing of the Holders of 51% or more in aggregate principal amount of the Bonds to be affected by such modification or amendment; provided, however, that no modification or amendment shall permit a change in the maturity of the Bonds or a reduction in the rate of interest thereon, or in the amount of principal obligation thereof, or affect the promise of the Issuer to pay the principal of and interest on the Bonds as the same shall become due frdm the Net Revenues, or authorize less than 30 days' notice of mandatory tender for purchase and/or redemption, by mail to Holders of any Bonds to be called for prior redemption or tendered for purchase, or reduce the percentage of the Holders of the Bonds required to consent to any adverse material modification or amendment hereof without the consent of ;the Holders of all Bonds; provided further, however, that the Issuer may at any time amend this Resolution to provide for the issuance or exchange of Bonds in coupon form, if and to the extent that doing so will not affect the tax exempt status of the interest on the Bonds. If the Bonds or any series of Bonds then outstanding are insured by a Bond Insurance policy, the consent of the Bond Insurer shall be required in lieu of the consent of the Holders of the Bonds so insured, and under such circumstances a copy of such amendments shall be sent to S&P and Moody's. For the purpose of computing the amount of Bonds held by the Holder of Capital Appreciation Bonds, the principal amount of a Capital Appreciation Bond shall be deemed to be its Compounded Amount. SECTION 6.02 SALE OF BONDS. The Bonds shall be issued and sold at public or private sale, at one time or in installments from time to time, at such price or prices consistent with the provisions of the Act and the requirements of this Resolution as the Board shall hereafter determine by resolution. SECTION 6.03 TEMPORARY BONDS. Until Bonds are ready for delivery in definitive form, the Issuer may execute, and upon its request in writing, the Bond Registrar shall authenticate and deliver in lieu of such definitive Bonds, one or more printed, lithographed or typewritten Bonds in temporary form. The Bonds in temporary form shall be substantially of the tenor of the Bonds described in this Resolution, with appropriate omissions, variations and insertions, and shall be subject to the same provisions, limitations and conditions set forth in this Resolution. The Issuer shall without unreasonable delay prepare, execute and~deliver to the Bond Registrar, and upon surrender of the Bond or Bonds in temporary form to the Bond Registrar, the Bond Registrar shall authenticate and deliver, in exchange 37 3247/NON,e001/AAO I ~ therefor, a Bond or Bonds of the same maturity, in definitive form, in authorized denominations and for the same aggregate principal amount as the Bond or Bonds in temporary form surrendered. The expense of such exchange shall be borne by the Issuer and there shall be no charge therefor to any Bondholder. SECTION 6.04 SEVERABILITY OF INVALID PROVISIONS. If anyone or more of the covenants, agreements or provisions herein contained shall be held contrary to any express provision of law or contrary to the policy of express law, though not expressly prohibited, or against public policy, or shall for any reason whatsoever be held invalid, then such covenants, agreements or provisions shall be null and void and shall be deemed separable from the remaining covenants, agreements pr provisions and shall in no way affect the validity of any of the other provisions hereof or of the Bonds issued hereunder. SECTION 6.05 VALIDATION its option, institute appropriate of the Bonds. OPTIONAL. The Issuer may, at proceedings for the validation SECTION 6.06 DEFEASANCE. If, at any time, the Issuer shall have paid, or shall have made provision for the payment of, the principal, interest and redemption premiums, if any, with respect to the Bonds or any portion thereof, then, and in that event, the pledge of and lien on the Net Revenues in favor of the Bondholders of those Bonds, or applicable portions thereof, shall be no longer in effect; provided, however, that (1) if any of the Bonds are to be redeemed prior to their respective stated dates of maturity, notice of the redemption thereof will be given in accordance with the provisions of Section 2.09 hereof or irrevocable provision will be made for the giving of such notice, and (2) in the event that any Bonds are not by their terms subject to redemption or will mature, as applicable, within the next succeeding 60 days following a deposit of money with the escrow holder in accordance with this Section 6.06, the Issuer will mail, or cause to be mailed, to the Holders of such Bonds at their addresses as they appear on the registration books of the Issuer maintained by the Bond Registrar, a notice stating that a deposit in accordance with this Section 6.06 has been made with the escrow holder and that the Bonds are deemed to have been paid in accordance with this Section 6.06, and stating such maturity or redemption date upon which money will be available for the payment of the principal of, redemption premium, if any, and interest on such Bonds; but failure to give such notice of redemption or notice of refunding, as applicable, shall not affect any defeasance otherwise in accordance with this Section 6.06. For purposes of the preceding sentence, deposit of sufficient cash and/or principal and interest of Federal Securities in irrevocable trust with a banking institution or \ trust company as escrow holder, for the sole benefit of such Bondholders,Ito make timely payment of the principal, interest, and redemption premiums, if any, on such outstanding Bonds, shall be considered "provision for payment." 38 3247/MON5tOOl/~O l '---- SECTION 6.07 NOTICES TO BOND INSURER. For the purposes of this Resolution, all notices sent to the Bond Insurer shall be sent by registered or certified mail to the address set forth in the commitment for the Bond Insurance policy. The Issuer shall send the Bond Insurer copies of notices required by this Resolution to be sent to Registered Owners. In addition, the Issuer shall send the Bond Insurer a copy of any disclosure statement circulated with respect to any additional obligations of the Issuer. SECTION 6.08 CUSTODIAL TRUST AGREEMENT. On or prior to the issuance of the Bonds, the Issuer shall enter into a custodial trust agreement with a bank or trust company, in regard to the Revenue Fund, the Operation and Maintenance Fund, the Sinking Fund (including all accounts therein), the Renewal, Replacement and Improvement Fund, and the Business Interruption Reserve Fund established herein, in substantially the form attached hereto as Exhibit A. SECTION 6.09 REPEAL OF INCONSISTENT RBSOLUTIONS. All resolutionsl or parts thereof in conflict herewith are hereby repealed to the extent of such conflict. SECTION 6.10 EFFECTIVE DATE. This Resolution shall take effect immediately upon its adoption. passed and adopted by of Monroe County, Florida, at January 13, 1993. the Board of County Commissioners a special meeting of the Board on (SEAL) ATTEST: ~kL~. ~ C erR, Board 0 un y Commissioners ~ 39 3247/MON5D001/AAO l L Exhibit A CUSTODIAL TRUST AGREEMENT THIS AGREEMENT, made and entered into this , 1993, by and between Monroe County, Florida (hereinafter called "county"), and Florida (hereinafter sometimes called "Custodial Trustee"); WIT N E SSE T H: WHEREAS, the County has heretofore authorized the issuance of not exceeding $5,000,000 Car~ Sound Road and Bridge Improvement Revenue Bonds, Series 1993 (hereinafter called "Bonds"), by a resolution duly adopted by the Board of County Commissioners of Monroe county, Florida (hereinafter called "Board"), on , 1993, as [amended and] supplemented (hereinafter collectively called "Resolution"); and I WHEREAS, the County by the Resolution established a Revenue Fund, a Sinking Fund (including a Reserve Account and a Bond Amortization Account therein) an Operation and Maintenance Fund, a Renewal, Replacement and Improvement Fund, a Business Interruption Reserve Fund, and a Enterprise Reserve Fund; provided for money to be paid into such Funds and Accounts; and set forth the purposes of such Funds and Accounts; and WHEREAS, the Board desires that Florida, serve as custodial trustee for Accounts; and , the above Funds and WHEREAS, it is considered advisable and in the best interest of the County and the holders of the Bonds that the terms of the trust be set forth in writing; and WHEREAS, the Custodial Trustee is willing to accept appointment as custodial trustee for the above Funds and Accounts, and the execution of this agreement has been duly authorized by the Board and by the Board of Directors of the Custodial Trustee; NOW, THEREFORE, it is mutually covenanted and agreed by and between the County and the Custodial Trustee as follows: Section 1. Defined the Resolution which appear meaning ascribed to them by herein otherwise requires. Terms. That all defined terms in in this agreement shall have the the Resolution, unless the context ,~ " '.~ I ~ Section 2. Appointment of CUstodial Trustee. That , Florida, is hereby appointed custodial Trustee to do and perform all acts required of the Custodial Trustee under the Resolution and in accordance with the provisions of this agreement. Section 3. Funds Held by custodial Trustee. That the Revenue Fund, the Sinking Fund, the Reserve Account, the Bond Amortization Account, the Operation and Maintenance Fund, the Renewal, Replacement and Improvement Fund, and the Business Interruption Reserve Fund created by the Resolution are hereby established with and shall be held by the CUstodial Trustee. The Construction Fund and the Enterprise Reserve Fund, created by the Resolution, shall be held by the County. . Section 4. Disposition of Trust Funds. That there is annexed hereto as composite Exhibit "A," and incorporated herein by reference, a certified copy of the Resolution which bears directly upon the duties of the CUstodial Trustee and the manner of handling such Funds and Accounts. The Pledged Funds (to the extent their disposition is subject to the terms of this agreement) lshall be deposited, held, invested and disbursed in accordance with Sections 4,02 and 4.03 of the Resolution. The County shall furnish the CUstodial Trustee instructions, from time to time, regarding the investment of Pledged Funds subject to the custody of the CUstodial Trustee. Section 5. Inspection of Documents. That all original documents received by the CUstodial Trustee as required herein, and evidence of payment, shall be retained in possession of the Custodial Trustee, subject at all reasonable times to the inspection of the Board, the holders of the Bonds and the agents and representatives thereof. Section 6. Acceptance of Trust. That the CUstodial Trustee accepts and agrees to execute the trust hereby ,created, but only upon the terms set forth in this agreement, to all of which the parties hereto agree. Section 7. or Trustee. That the CUs 0 a Trus ee may execu e any 0 e trusts or powers hereof and perform the duties required by it, by or through attorneys, agents or employees, and shall be entitled to advice of counsel concerning all matters of trust hereof and its duty hereunder. Section 8. Reliance b of County. That the CUs 0 ia Trus ee shall incur no liability in acting or proceeding in good faith upon any resolution, notice, telegram, request, consent, statement, affidavit, certification, voucher, bond or other paper or document which it shall in good faith believe to be genuine and to have'~een passed or signed by the proper officers, agents, or employees of the County, or to have been prepared and 2 3247/MON59001/A.. , ~ l ~ ~ . furnished pursuant to any of the provisions of this agreement; and the Custodial Trustee shall be under no duty to make any investigation or inquiry as to any statements contained or matters referred to in any such instrument, but may accept and rely upon the same as conclusive evidence of the truth and accuracy of such statement. Section 9. Custodial Trustee may be Bondholder. That the custodial Trustee may in good faith, buy, sell, own, hold and deal in any of the Bonds and may join in any action which any bondholder may be entitled to take with like effect as if the Custodial Trustee were not a party to this agreement. The Custodial Trustee may also engage in or be interested in any financial or other transaction with the County and may act upon, or as depositary, trustee, or agent for, ~y committee or body of holders of the Bonds secured hereby, or other obligations of the County as freely as if it were not Custodial Trustee hereunder. Section 10. Construction of Trustee. That the Cus 0 ia Trus ee may cons rue any 0 e provisions pf this agreement insofar as the same may appear to be ambiguous or inconsistent with any other provisions hereof, and any construction of any such provisions thereof by the Custodial Trustee in good faith shall be binding upon the parties hereto. Section 11. Resignation of Custodial Trustee. That the Custodial Trustee may resign and be discharged of the trust created by this agreement by executing an instrument in writing resigning such trust, specifying the date when such resignation shall take effect, and filing the same with the Clerk of the Board not less than 60 days before the date specified in such instrument when such resignation shall take effect. Such resignation shall take effect on the day specified in such instrument unless a successor trustee shall be previously appointed as hereinafter provided, in which event such resignation shall take effect . immediately on the appointment of such successor trustee. Section 12. Transfer of Trust Estate to Successor Custodial Trustee. That any successor trustee appointed hereunder shall execute, acknowledge and deliver to the County an instrument accepting such appointment hereunder, and thereupon such successor trustee, without any further act, deed or conveyance, shall become fully vested with all the estate, property, rights, powers, trusts, duties and obligations of its predecessors in the trust hereunder, with like effect as if originally named trustee herein. Upon request of such trustee, the trustee ceasing to act and the County shall execute and deliver an instrument transferring to such successor trustee all the estates, properties, rights, powers and trusts hereunder of \ the trustee so ceasing to act; and the trustee so ceasing to act shall pay ov~r to the successor trustee all money at the time held by it hereunder. 3 3241/MONseOOl/AB4 " , -- Section 13. Consolidation or Merger of Custodial Trustee. That any corporation into which any trustee may be merged or with which it may be consolidated, or any corporation resulting from any merger or consolidation to which any trustee hereunder shall be a party, shall be the successor trustee under this agreement without the execution or filing or any paper or further act on the part of the parties hereto, anything herein to the contrary notwithstanding. Section 14. payment of Ex~enses of Custodial Trustee. That the County shall pay the Custo ial Trustee its proper fees and expenses from the Operation and Maintenance Fund, created and established by the Resolution. Section 15. Modification or Amen~ment. That no adverse material modification or amendment of this agreement or of any agreement amendatory hereof or supplemental hereto, may be made without the consent in writing of the holders of 51\ or more in aggregate principal amount of the Bonds then outstanding to be affected by such modification or amendment and, if the Bonds are then covered by a municipal bond insurance policy issued by Municipal Bond Investors Assurance Corporation ("MBIA"), and MBIA is not then in default under such policy, the consent of MBIA; provided, however, that no modification or amendment shall reduce such percentage of holders of such Bonds, required above, for such modifications or amendments, without the consent of the holders of all of such Bonds. under such circumstances a copy of such amendments shall be sent to S&P and Moody's. Section 16. Agreement for Benefit of Bondholders. That this agreement shall be deemed to have been and is made for the benefit of the holders from time to time of the Bonds and shall be enforceable by any of the holders thereof in the manner provided in the Resolution and the laws of Florida. ,." 4 3Z47/NOM5.001/AB4 ,. - " L IN WITNESS WHEREOF, Monroe county, Florida, has caused its seal to be hereunto affixed and attested by the Clerk of the Board and these presents to be signed by the Mayor of the Board; and Florida, has caused attested by its signed by its above written. , its corporate seal to be hereunto affixed and , and these presents to be as of the day and year first MONROE COUNTY, FLORIDA . (Seal) By Mayor, Board of county Commissioners Attest: clerk, Board of County Commissioners (Corporate Seal) custodial Trustee Attest: By ~ 5 3247/MON59001/AB4