R-69-158RESOLUTIOIJ NO. 158
RESOLUTION AUTHORIZING THE ISSUANCE OF NGT
EXCEEDING $800,000.00 SANITARY SE~9ERAGE
IMPROVEP•1ENT CERTIFICATES OF TFiE CITY OF
CLERMONT, FLORIDA; PROVIDING FOR THE
RIGHTS OF THE HOLDERS. THEREOF; AND .PLEDGING
FOR THE PAYMENT THEREOF THE PROCEEDS FROM
SPECIAL ASSESSMENTS.
BE IT RESOLVED by the City Council of the City of
Clermont, Florida, that:
SECTION 1. It has heretofore been determined
that it is necessary and desirable to make certain public
improvements within the area-known as Special Assessment
Improvement District Number One in the City of Clermont,
Florida (hereinafter referred to as the "City"), consisting of a
new municipal sewer. system in the City, includins force mains,.
pumping stations, interceptor lines, treatment facilities and
appurtenant facilities, all in accordance with certain plans
and specifications on file with'the City Clerk (hereinafter
called the "project").
SECTION 2. It is hereby found and determined as
follows:
A. A portiom of the cost of the construction of
such public improvements in Special Improvement District
Number One wiil be paid by .the issuance. and delivery of the
certificates herein authorized. Such certificates shall be
payable. from the proceeds derived from the -levy.. and collection
cif special assessments against the property abutting or ad-
joining the project. Such property will be specially benefited
by the contruction of the project and such special assessments
Y.ave been levied against such property in proportion to the
special positive benefits to be received from the construe-
tion of such project.
B. The contract for the construction of such public
improvements has been finally awarc~?c:, -
C. The assessment roll heretofore .prepared by the
City's Consulting Engineer imposes assessments upon the pro-
perties to be specially benefited by the proposed public
improvements. and the amount of such assessments as to each
parcel assessed does not exceed the amount by which such
parcel is determined to bek~e~nefited. 2fhe City Council has
heretofore equalized, adjusted and confirmed .such-assess-
meats pursuant to the provisions of Chapter 170,. Florida
Statutes.
D. It is deemed necessary and desirable to pledge
the proceeds of the special assessments levied against-the
properties specially benefited by the construction of the
public improvementsto the payment of the principal of and
interest on the c®rtificates herein authorized.
E. The amount of the above described proceeds, as
estimated, together with interest thereon and penalties, wi l
be sufficient in theeaggregate`tQ pay the.,, principal of and
interest on the certificates herein authorized as the same
.become due, as provided in this resolution.
F. The principal of and interest on .the certifi-
.canes to be issued pursuant to this res~~lution-and all other
payments provided for wi.llhe paid solelyfrom the proceeds
of the special... assessments- to the extent that `the same shall
be lawfully levied and collected :against. al1_property specially
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benefited by the construction of the public improvements
herein authorized. The City will not be authorized. to levy
ad valorem taxes on any real property therein to pay the.
principal of and interest on the certificates herein author-
ized or to make any other payments.. provided for herein.
SECTION 3. In consideration of the acceptance of
the certificates 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 be-
tween the City and such holders. The covenants and agree-
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ments herein set forth to be performed by the City. shall be
for the equal benefit, :protection and security of the Legal
holders of any and all of such certificates andthe coupons
attached thereto, all of which shall be of equal rank and
without preference, priority or distinction of any of thee-
. certificates or coupons..over.:any other thereof, except as
expressly provided therein and herein. ~ "
SECTION 4. Subject and pursuant to the provisions
of this resolution obligations of he City to be know as
."Sanitary Sewerage .Improvement. Certificates°, hereinsome-
times referred to as "certificates`,', are hereby authorized
to be issued in the aggregate principal amount of not ex-
ceeding Eight Hundred Thousand Dollars ($ 800, 000.0.0)
___..___ SECTION-5. Such certificates.shail be dated
and shall be .numbered consecutively
beginning with `.number one (No. 1),shail be in the denomina-
tion of $5,000 each, shall bear. interest from the date thereof
at a rate of not exceedings __ - 9b) per annum
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• until maturity, such interest to be payable annually, and ,
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. ~ shall mature. on April 1, ~~~: .. .
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Each of such certificates shall bear a certificate, .
': signed by the facsimile signature of the City Clerk, certi-
fying that the amount, of•special assessment liens levied
_ ~ against the benefited property is at least equal • to the
• aggregate amount of certificates issued .hereunder.
' ~ ~ SECTYON 6. Such certificates shall be issued in
• ~ coupon form; shall be payable with respect to both princi-
pal and interest at ~ (C /~ ~ o-,N
l ~~' -- , Florida, or at the option: of the holder,
. at the main, office of ,
. in the- Borough of Manhattan, City and State of New. York;
~~ shall be payable in lawful money"of the United States of America;
' and shall bear interest :from their date payable in accordance
,with. and upon surrender•of the appurtenant coupons as they
severally mature:
r"'!$ECTZON 7. 2'hecertificates shall-be executed..
in the name of the City by the Mayor. and countersigned ,,and
attested by the City Clerk;arzd the corporate seal of the City
• shall be'impressed thereon... The facsimile signatures of the.
'• Mayor or City Clerk may.bo imprinted or ,reproduced-on the
certificates, provided that at least one signature required to
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~be placed thereon shall be manually subscribed. In-case any
one or more of the officers who shall have signed or sealed
any of the certificates shall cease to be such officer of the
City before the certificates so signed and sealed, shall have
been actually sold and delivered, such certificates may never-
theless be sold and delivered as herein provided and. may be
issued as if the person who signed or sealed such certifi-
cater had not ceased to hold such office. Any certificate
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may be signed and. sealed on behalf of .the City by such person
who, at the actual time of the execution of such certificate,
shall hold the proper office in the City., although at .the
date of such ce`tificate such person may not have held such
.office or may not have beensoauthorized.
The coupons attached to the certificates shall be
authenticated with the facsimile. signatures of any present
.. or future. Mayor and City Clerk,...andthe-validation certifi-
sate on said certificates shall be executed with the facsimile
signature of the Mayor... The City may adopt and use for such
purposes the facsimile signature of any person who shall- have
been such Mayor or City Clerk at any .time on or after the
date of the certificates, notwithstandingthat he may have
ceased to be such officer at the time such certificates shall
be actually sold and delivered..
SECTION 8. The certificates issued hereunder shall
be, and shall-have all. of the qualities and incidents of, nego-
table instruments :under the laws of the; :State of Florida, and
each successive holder, in accepting any of said certificates. or the
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coupons appertaining thereto, shall be conclusively deemed
to have agreed that such certificates'shall be and have all`
of the qualities and incidents of negotiable instruments
and the laws of 'the State of Florida.
SECTION 9. In case any certificate shall become
mutilated or be destroyed, stolen or lost, the .City may in
its discretion issue and deliver a new certificate with all
unmatured coupons attached oflike tenor as the certificate
and attached coupons, if any, so mutilated, destroyed, stolen
or lost, in exchange and substitution for-such mutilated
certificate, upon surrender and cancellation of such mutilated
certificate and attached coupons, if any,..or in lieu of and
substitution for the certificate and attached coupons, if any,
destroyed, stolen or lost, and upon the holder-,furnishing
the City proof of his ownership thereof and satisfactory; in-
demnity and complying. with such other reasonable regulations
and conditions as the City-may prescribe and paying such ex-
penses as the City.may incur. A11 certificates and coupons
so surrendered shall be canceled by the City Clerk. if .any
such certificates or coupons shall havematured or be about
to mature, instead of issuing a substitute certificate or
coupon, the City may pay the same, upon beng.indemnified
as aforesaid,'and if suchcertficateor coupon be lost,-
stolen orsdestroyed, without surrender. thereof.
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Any such duplicate certificates and coupons issued
.pursuant to this section shall constitute original, additional
contractual obligations on the part. of the City whether or
not the lost, stolen or destroyed certificates or coupons.
be atany time found-by anyone, and such duplicate certifi-
~cates and coupons shall be entitled to equal. and .proportionate
benefits and rights as to lien on and source and security
for payment from the funds,. as hereinafter pledged,. to the
same extent as all other certificates and coupons issued
hereunder.
SECTION 10. The certificates shall be redeemable '
prior to maturity, at the~~option of the City, in ,hole or
in part, in inverse numerical order if less. than all, on any
date-after the issuance thereof at the price of par and
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accrued. interest to the. date of redemption;_ provided, how-
- ~ ever, that a notice of such redemption shall have-.been pub-
fished at least once in a newspaper of general circulation
in the City,, and thatthe date of such publication shall be
not less than. thirty (30).days prior to the redemption date;.
and,. further, provided that written notice of such redemption
shall also be given to the.paying agents named in such certi-
ficates at least thirty (30); days before such redemption date.
SECTION 11. The certificates may be registered at
the option of the holder as to principal only at the office
of .the City Clerk, such registration to be noted. on the back
of said certificates in the pace provided therefor. After
such registration as to principal only, no transfer of the
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certificates shall be valid unless made at said office by
the registered owner, or by his duly authorized agent or
representative and similarly noted on the certificates,
but the certificates may be discharged from registration by
being in .like manner transferred to bearer and thereupon.
transferability by delivery shall be restored. At the
option of the holder, the certificates nay thereafter again
from time to time be registered or transferred to bearer as
before. Such registration as to principal only shall not
affect the negotiability of the coupons which shall continue
to pass by delivery.
SECTION 12. The text of the certificates, the.
interest coupons to be attached thereto, and the validation
.certific~t~ therean;~shall,be of substantially the following.
tenor,-with such variations, omissions and insertions as may
be necessary and. desirable. and authorized or permitted by:
this resolution or any subsequent resolution adopted prior
to the issuance thereof:
UNITED ~ STATES OF~ .AMERICA.
.STATE OF FLORIDA-
COUNTY Or^ LAKE
CITY OF CLERMONT '
SANITARY SEWERAGE IMPROVEMENT CERTIFICATE
.KNOW ALL MEN BY THESE PRESENTS, that the City. of
Clermont. in the County. of Lake ,State of Florida. (here-
inafter called "City"), for value received, hereby promises
to pay to the bearer hereof or,'if this certificate be regis-
feted, to the registered holder as herein provided, on the
first day of April, 1980, solely from the special _.
fund hereinafter described, the principal sum of
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FIVE THOUSADTD DOLLARS ($5,000.00),
.and to pay solely from said special fund interest thereon
from the .~7ate ofthis. certificate until `maturity atthe
rate of per centum ( ~) per annum,
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payable annually on the first day of November of each year upon
presentation and surrender of the. annexed coupons as they
severally fall due. Both principal and interest are payable
at par in lawful money of the United States of America at
the ~ ,
Florida, or, atth e option of the holder, at the main office
of ~ in the Borough of
Manhattan, City and State of New York.
Z'he certificates of this .issue are redeemable prior
to maturity, at the option of the City, in whole or in part,...
in inverse numerical order if less-than all, on any date after.
the issuance hereof at the price of par and accrued interest
to the date. of redemption, provided that a notice of such
redemption shall be given in the manner provided in the reso-
lution..
phis certificate is-one of an; authorized issue of
certificates in the aggregate-amount of not exceeding $800,000
of like.. date, tenor. and effect, except as to
number, issued to pay the cost and expenses of constructing
public sewer improvements. in Special Improvement District .
Number One in-.the City, under the authority of and in full
compliance with the-Constitution andLaws of the State of
Florida,. particularly Chapter 170, Florida Statutes,, and
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Resolution Number duly adopted by the City Council on
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the day of 19 (herein referred to
-• as the "resolution"), and is subject to all the terms and
conditions of such resolution.
This certificate is payable solely from special
assessments levied against benefited property to pay for said ..
improvements, the interest thereon and penalties therefrom.
This certificate: does not constitute an indebtedness of the
City within the meaning of any constitutional, statutory
or charter provisions, and the holder hereof shall have no
right to compel the exercise of the taxing power of said
City for the payment of the principal of and interest on
this. certificate. The City, iri such resolution, has covenanted
and agreed to enforce the collection of all special assessments
levied against benefited property to pay for said public im-
provement s, to deposit into a special fund designated as
"Sanitary Sewerage Improvement Certificate Fund" all of the
receipts derived from said special assessment s; interest
thereon and penalties therefrom, and to pay th is `certificate'
and the interest thereon from. moneys on deposit in said hind
in the manner provided by the resolution.
. It is hereby recited, warranted and. certified that
" all of the requirements of the law.have bearfully complied
with by the. City and its officers in the issuance of this
certificate and that all of-the proceedings with reference to
the making of said improvements and the levying: of said assess-
merits have. been regularly. had in compliance with law; and all
of the prerequisites to the imposing of the assessment liens
against. the., property, benefited for said public improvements
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have been performed.
This certificate and the coupons appertaining there-
to are and have .all the qualities and incidents of negotiable
instruments under the laws of the State of Florida, and the
original holder and each successive holder of this certificate
and the coupons appertaining thereto, shall be conclusively
deemed, by his acceptance thereof, to have agreed that this
certificate and the coupons appertaining thereto shall be and
have all the qualities and incidents of negotiable instruments
under the laws of the State of Florida.
This certificate may be registered as to principal
only, in accordance with. the provisions endorsed hereon.
IN WITNESS WHEREOF, the City of Clermont ,..Florida,-
has caused its corporate seal to be impressed hereon and this
certificate to be executed by the manual or facsimile signature
of its Mayor, attested and countersigned by the manual
or facsimile signature of its City Clerk, and the interest
coupons thereto attached to be executed with the facsimile
signatures of said Offic®rs, all. as of the first day of
April, 1969. .
. , ~ CITY OF CLERMONT ., .FLORIDA
.BY.
Mayor
(SEAL)
ATTESTED AND COUNTERSIGNED:
• City Clerk
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INTEREST COUPON
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Coupon No. $
On the first day of April, A. D. 19 the City
of Clermont, Florida, will pay to the bearer hereof the
amount shown hereon, in lawful money of the United States
of America, at , Florida,
or, at the option of the holder, at the main office of
in the Borough of Manhattan,
City and State of New York, from the special fund described
in the certificate to which this coupon is attached, provided.
the certificate to zahich this coupon: is attached shall note
have been heretofore paid in accordance with. the terms thereof;
being one year's interest then due on its Sanitary.Sewerage-
Improvement Certificate, dated the first day of April, A.D.
1969.
CITY OF CLERMONT, FLORIDA
. By
Maya r
ATTESTED AND COUNTERSIGNED:
City Clerk
VALSDATION CERTIFICATE
This certificate is one of a series of certificates
which were validated by judgment of the Circuit Court for
Lake County, Florida, rendered on 1970.
Mayor
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.PROVISION FOR REGISTRATION
This certificate may be registered in the name of
the holder on the books to be kept by the City Clerk, as
Registrar, or such other Registrar as may hereafter be duly
appointed, as to principal only,' such registration being
noted hereon by such Registrar. in the registration blank
below, after which no transfer shall be valid unless made
on said books by the registered holder or attorney duly
authorized and similarly noted in the registration blank
below, but it may be discharged from registration by being
transferred to bearer, after which it shall be transferable
by delivery, but it may be again registered as before. 2'he
registration of .this bond as to principal shall not.re-
strain the negotiability of the coupons by delivery: merely.
Date of In Whose Name Signature of
Registration Registered Registrar
STATE OF FLORIDA
COUNTY OF. LAKE. . ~
I, the undersigned, City Clerk of the_City of Clermont,
Florida, hereby certify that the amountof:liens levied, the
proceeds of which are pledged to thepayment of the certificates
~~ of which this certificate is one, are equal to the aggregate
amount. of the Sanitary Sewerage .Improvement Certificates issued
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by the City.
City Clerk
SECTION 13. Neither the certificates ro r the coupons
appertaining thereto shall be or: constitute general obliga-
~tions or indebtedness of the City of Clermont, Florida, as
"bonds" within the meaning of the
Constitution of Florida, but shall be payable solely from
and secured by a lien upon and a pledge of the special assess-
ments, as herein provide3. No holder or holders of any cer-
tificate issued hereunder, or of any coupon appertaining
thereto, shall ever have the right to compel the exercise
of the ad valorem taxing power of the City, or taxation in
any form of any. real property therein, to pay said certifi-
Cates or the interest,-thereon, or be entitled to payment of
such principal and interest from any;.other funds of the
City.
SECTIONI4. The payment of the debt service of all
the certificates.. issued hereunder: shall be secured forthwith
equally and ratably by a pledge ofand a prior lien upon the
proceeds of the special assessments, includ n Q:interest and
penalties. thereon, levied and collected against .all property
specially benefited by the construction of the public improve-
menu. The City does hereby irrevocably pledcp such proceeds
to the payment of the principal of and interest on the certi-
ficates issued pursuant to this resolution andtn the payment
into the Sanitary Sewerage Improvement CE~tifcate Fund.,.here-
inafter created, at the times provided, the sums required to
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secure to the holders of the certificates issued hereunder
payment of the principal of and interest thereon at the ma-
turity of the certificates so held by them.
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SECTION i5. For as long as .any of the principal of
and interest on any of the certificates shall be outstanding
and unpaid, or until there shall have been set apart in the
Sanitary Sewerage Improvement Certificate `Fund, a sum suffi-
cient to pay when due, .the entire grincipal of the certifi-
cates remaining unpaid, together with interest accrued or to
accrue thereon, the City covenants with the holder of any
and all of the certificates issued pursuant to this resolu-
tion as follows, that:
A.. The City shall establish with
Florida, a bank or
trust company which is a member of the Federal Deposit Insurance
Corporation, and maintain so long as any of the certificates
are outstanding, a special-fund, which is hereby created and
designated "Sanitary Sewerage Improvement Certificate Fund"
(herein called the "'Certificate Fund"), into which the City
shall deposit all accrued interest received upon the sale of
the certificates and all moneys received from the
collection of assessment installments, interest thereon
and penalties therefrom. Such funds shall constitute trust'
funds and shall be used solely, and are hereby so irrevocably
pledged,. for the purpose of paying the principal of and interest
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on the certificates when the same shall become due. Such
.certificates and the interest thereon shall be paid out of
the Certificate Fund in the following manner and order of
priority:
(1) First, for the payment of matured certificates
and all interest due and payable, and for the payment of certi-
ficates to mature and interest becoming due and payable on
the certificates on the next annual maturity and interest
payment date.
(2) Second, all moneys in tY~e Certificate Fund
not needed for the gayments provided in subsection (1) above
shall be used for the redemption of certificates, at prices
not exceeding par and accrued interest, after reserving suffi-
cient moneys to pay certificates which will mature and interest
accrued and to accrue during he succeeding twelve (12) months.
(3) ~ After the principal of and interest, on: all _the.-, .
certificates shall have been,-gad, or there shall~have'.beef.
set apart a sum sufficient to pay when due thee-entire prnci-
pal of the certificates remaining unpaid and interest accrued
or to accrue thereon,_any moneys remaining on deposit to the
credit of the Certificate Fund shall be withdrawn therefrom
by .the City-and may be used by the City for any lawful munic-
ipal purpose.
B. The City will receive, collect and enforce the
-payment of all the assessments levied for the public.improve-
,meets. and all of the installments thereof,; interest thereon
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and penalties therefrom, in the manner prescribed by this
resolution and all other resolutions or laws thereunto ap-
pertaining, and to pay and deposit the proceeds of ali assess-
ments received into the Certificate Fund.
C. If the owner of any lot or parcel of land
assessed for said improvements shall be.delinquent. in the
payment. of any assessment,.installments, or interest due,
for a period of sixty (60) days, hen the City~Council
shall declare the entire unpaid balance of said. assessment,
interest and penalties to be in default and, at its own
expense, shall cause such delinquent property to be fore-
closed in the same method now or hereafter provided by the law
for the foreclosure of mortgages on real.estate, or other-
w ise as provided by law. If said foreclosure be not promptly
filed and prosecuted, then .any ce~rtificateholder may file
and prosecute said foreclosure action in the name of the City
for the benefit of all outstanding or unpaid certificates
and interest. thereon. All moneys realized thereby-shall be
deposited in ~e Certificate Fund and distributed as above.
provided. The. City further covenants., at-its expense,. to
furnish to any certificateholderrequesting't3~e same., sixty
(60) days after. the .due-date of eachannual installment, a
list of all delinquent installments, together with an annual
audit of the Certificate Fund b;, a certified public accountant.
. D. If any property shall lee offered forsalefor
the non-payment>of any,assessment,installment thereof or
interest or penalty thereon, and no person or persons shall
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purchase the same for an amount equal to the full amount due
on the assessments (principal, interest, penalties and costs),
the said property shall then be purchased in the name of the
City for an amount equal to the balance due on the assess-
ment (principal., interest penalties and costs), and said
' City. shall receive in its corpora~e name the title to said"
property for the benefit of the holders of the certificates.
T'he City shall have the power and shall lease or sell said
property, and deposit all of the net proceeds of any such.
lease or sale into the Certificate Fund. Not less than
ten (10} days prior tothe filing of any foreclosure action
as herein provided, the City shall cause written notice
thereof ~ be mailed to any designated agents of the certi-
ficates. Not less than thirty (30p days prior to the proposed
sale of y lot or tract of land acquired by foreclosure by
the City it shall give written notice 'thereof to said-re-
presentatives. The City agrees that it shall be- required
to take the measures-provided by law for sale of property
acquired by it as trustee for the cert~ficateholders within
thirty (30) days after the. receipt c~ the request therefor signed
. by fifteen per cent (15%) of the holders of the outstanding
certificates.
E. - Z'he City, will .not issue .any other obligations
payable from the proceeds of the special assessments. herein
pledged. nor voluntarily create or cause to be created any
• debt,.lien,-pledge, assignment, encumbrance or other charge
upon .any of_the moneys in the Certificate Fund or .upon such
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special assessments.
SECTION 16. -The certificates may be sold at public
or private. sale for not less than par and accrued interest or
may be delivered to the Contractor in full payment of his
contract. .
SECTION 17. No material modification or amendment
of this resolution or of any resolution amendatory .hereof
or supplemental hereto, may be made without the consent
in writing of the holders of sixty-seven per centum (67 /) or
more in principal amount of the obligations then outstanding;.
provided, however, that no modification o r amendment shall
permit a change in the.maturity_of such obligations or a
reduction in the rate of interest thereon, or in the amount
of the principal obligation or affecting the unconditional
.promise of the City to levy and collect such special assess-
menu, as herein provided, or to pay..the ~ principal `of and
interest on the certificates as the-same shall become due
from the- assessments, or reduce-such percentage of holders of
such certificates, required above, for such modifications or
amendments, without the consent of the holders of all of
such certificates.
-SECTION 18. If any one or more of the covenants,
agreements or_;provisions of this resolution should 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, ar shall for any reasorr whatsoever
be held invalid, then such covenants, agreements `or provisions
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shall be null and void and shall.be deemed separate from the
remaining covenants,. agreements or provisions, and in no
way affect the validity of all the other provisions of this
resolution or of the Certificates or coupons issued hereunder.
SECTION 19. The City Attorney be and he is hereby
authorized and directed to institute appropriate: proceedings
in the Circuit Court of the Fifth ,~dicial Circuit
of Florida, in and for Lake County, Florida, for the valida-
tion of said certificates, and the. proper offi.:ers of tl~
City are hereby authorized to verify on behalf of the City
any. pleadings in such proceedings.
. SECTION 20. All resolutions or parts of resolutio ns
in conflict herewith are .hereby repealed.
SECTION 21. This resolution shall take effect.
immediately upon its adoption by the City Council and approval
by the Mayor.
ADOPTED at an. Adjourned~Meeting of the City Council of the .
City. of Clermont, Lake County, Florida, held on December 23, 1969.
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