R-75-256.'
r
R E S O L U T I O N N 0~, Z56.
~,.~(?LL'T~(~ 1 1. I-.OVIJ ~~~.~~ FC?,~. ~.iIl•: 11C~%iJI~~I':IOr~d.
CONSTRUCTIO_~I A:JD ~;ItECTIO~~1 OF T~XI'E;IS.T_O`dS A^1D
Ii~iPP.OV~~'`I~,'v`:CS TO TiIE PiUidICIPAI; C~7A`:I'E.R A:Ji~
SE:'~FR SY~'L~E^~1; 1~UTHOi~I~~Ii~G `i'iIE ISSUA'~iCE OF
i1GT E::C~EDI?d ,; ;323, 100 4';=\`I'ER Air?D SE~~'hR
1?r.`JEi1UE BOl`?DS, SERIES 19"75, TO FI>`1ANC~:
"':IE COST 'I'IIIrKIOI'; PI,EDGII~G TI-I1; ~1ET FE~iE-
NL'I?S OF SAID SYST:~°, CEP.TtiIiJ`1U','v'ICIPAL
EXCISE TAXES, ASSESSMENTS AGAINST SPECIALLY
BENEFITED PROPERTIES AND ALL MODIEYS OF THE
CITY llERIVED FROM SOURCES O`PHER THAN AD
VALOREM TAXATIOi~I AND LEGALLY AVAILABLE F'OR
FOR SUCH PURPOSE TO SECURE 'I'HE PAYMENT
THEREOF; AND PROVIDIbIG FOR THE RIGHTS OF
THE HOLDERS OF SUCH BONDS.
a3T IT P.ESOLVED hY THE CITY COUNCIL OE' TILE CITY OF
CLERi~lOP]T, FLORIDA, as folloc,~s:
ARTICLE I
GENERAL
•
1.01 Authority for this Resolution. This Resolution,
hereinafter called the "instrument," is adopted pursuant to the
provisions of Chapter 159, Part I, Florida Statutes, and other
applicable provisions of law.
1,02 Findings. It is hereby found and determined that:
(A) For the benefit of its inhabitants, the City of
Clermont (hereinafter sometimes called tine "Issuer") presently
owns a water and sewer system (hereinafter sometimes referred to
as the "system"); and it is necessary for the continued preserva-
tion of the health, welfare, convenience and safety of the Issuer
and its inhabitants to construct extensions and imt~rovements to
'_[?_ .:i_~:iC~:'ii i,_~~1.'`~-_ -._.!-': .. ...~~~._:?~. ?:.lJ ~l.`3 ~iZG n`J~Oj ..C"} 1~1 ~1'~i;7~."
anCe GJltli cE~rtain plans and specifications now on isle ~l.~th the
City Clerk of the Issuer (hereinafter sometimes called the "Clerk").
(B) The Issuer 'rras been advised by its consulting
en~~.ineers that the cost of constructing the project in accordance
with said plans and specifications is estimated at X323,100,
which shall be paid whiz the proceeds of the sale of the iJOiids
hcrei.n autiiorizec~ and small be deemed to include all expenses neces-
sarl`, appurtenant or incidental thereto, including the cost oz any
land or interest therein or of any fixtures or e~uiprlent, or pro-
p~rL-y necessary or convenient tizerefor, the cost of labor and
'~ •
rnat~~rials to co~!l~lete such construction, enninc!ering and legal
e?{C~F'.[iSC~7, f15C:11 ':':~~'n`,PS` C;~~)E'I1SE'_S ~01: i?;itl[itltt~~ Of COStS %:nd
i~_"T~'I:L!C',1, .~;~L ~'_n~': `i fog ~ lan5, S~?eC1f1Cat1Or1S and ~UrV(_'1~S, llltereS~
durs.ng construction, ii any, administrative expenses and all othf~r
nccessr~ry Iniscellan~o[_!s eaponses.
(C) (i) Pursuant to Section 167.431, Florida Statutes,
the Issuer did, on October 10, 1957, enact non-emergency Ordinance
No. 156 levying and imposing a utilities services 'tax on every
purchase of electricity. gas (natural liquefied petrole.'n gas or
manufactured), w~~rter service, telephone service and telegraph service
caiti!in the corporate li.:-nits of the Issuer.
Pursuant to law, the Issuer did on November 17, 1959,
under authority of an ordinance duly enacted, enter into an agree-
ment ~•rith Lake Apop'ra iJatural Gas District for a period of thirty
(30) years whereby the Issuer would receive a franchise tax by
reason of raving granted. to Lake Apop};a Natural Gas District the
right to supply natural gas to the Issuer or its inhabitants.
Pursuant to law, the Issuer did, on September 20, 1970,
under till authority of an ordinance duly enacted, enter into an
a:~r~~e.nent ~Tltll F'lo.rida Power and Lig'r!t Cor[!pary for a period of
thirty (30) years whereby file Issuer would receive a franchise tax
by reason of having granted to Florida Power and Lig`lt Company the
rig:lt to supply electric light and power facilities and services to
`I'lle proceeds to be derived by the Issuer from the
utilities services tax and from the franchise taxes are hereinafter
~~ ~~
referred to as tree e:{cise taxes.
(ii} A part of the cost of the construction of
the project will. be assessed against the lands to be specially
benefited by the project, in the manner provided by law.
(ii.i) The revenues to be derived annually from
the rates, rentals, fees and other charges made and collected for
the services aril facilities oz: the system are estimated to be
$ „~ 7/, 7/ 7 and, together with the proceeds of .the excise
taxes, and the proceeds of the special assessments, estimated to
b~ X11, 400, and interest thereon (the "P.ssessments") will be suf-
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ficient to pay the principal and interest on the prior lien
obligations, hereinafter defined, and the bonds herein authorized
as the same become due and the annual cost of operating, repairing
and maintaining 'the system, the aggregate annual amount of which
is estimated to be $ ,~ .3 j; 8 ~a ~ It is estimated that
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tn~~ period of usefulness of the system will exceed forty-one years.
(D) It is deemed necessary and desira}ale to pledge
tice net .r,evenues of tine system and t%~~~ proceeds of the excise taxes
to the payr^ent of the principal of and interest on the bonds herein
authorized. TIo part of such revenues and excise to;ties ~~rill be
pledged or hypothecated except with respect to the bonds herein
authorized, and except that sach revenues and excise taxes have
been pledged first to the payment of the principal of and interest
on the Issuer's outstanding Suter and Sewer Revenue Bonds, dated
Novertiuer 1, 1970, and 6~ater and -Sewer Revenue Refunding Bonds,
Series 1972, dated iJovember 1, 1972, hereinafter sometimes zeferred
to as the "prior lien obligations". It is deemed necessary and
desirable o pledge as additional security for the payment of the
principal of and interest on the bonds all moneys of the Issuer
derived from sources other than ad valorem taxation ~,rhich shall
be legally available for- such purpose.
(~) This instrument is declared to be and shall con-
sti-lute a contract between the Issuer and the holders of all such
bonds; and the covenants and agreements herein set forth. to be
performed by the Issuer are and shall be for the equal }~enefit,
protection and security of the legal holders of any and all such
bonds issued under this instrument, all of which shall be of equal
rani; and without preference, priority or distinction of any of
(i~) The Issuer is not, under this instrument, obiigated~
to levy any ad valorem taxes on any real or personal property
situated W1t111I1 its corporate territorial limits to pay the prin-
ci~.al of or interest on the bonds hereinafter authorized or to pay
the cost of maintaining, repairing and opPratinq the system. Such
bonds issued pursuant to this instrument shall not constitute a
lior: upon tie system or any other property of file Issuer or sit-u-
atr~d t~rithin i+-s corporate territorial limits,
1.03 Definitions. The fol.low~ng terms in this instru-
m~~nt shall gave the follo~,rirlg meanings unless the text other~~rise
e.:pressly roquires;
(a) "Gross Revenu~.s" derived from the or:c~ration of the
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k3~'iii=C::1 ._?~`%'~_]_ r~:~zn •_1 J.1 ::1017.f~1~.~ r:?CC1.'Ji?C't LI'O~~l r~=It^~i f-C'CS, CC,nt~11S
or othcr_ cil_lr.7es or incomes r_c,r_ni~~~cc; Y)y t.lc` Iuauer or accruin<~
t0 It lil tiiE' '(lilI1~lC~eiili~llt alld Gi(Jratl011 Oi t110 SVotei~t, call CalCU-
1~1teC? In ctCCOrt?anCe ~'Jlt'tl S~Ulld aCCOL1I1t1P.f1 practl~°.
('~) "C)~~'ratlrlCj Exp('nSf:S" Of the SyGt~^-r?[1 Shall mCc1n
al.l current ~;:.penscs, paid or accrues?, for the operation, main-
tenance and repair of the system and its facilities, as calcu-
lated in accordance :•rith sound accounting practice, and shall
include, without limiting the generality of the Eore~;oing, in-
surance ~~re:7;iurr.s, ad~ninistrativ~ expenses of the Issuer related
solely to tie system, labor, cost of rnaterials and supplies
used for current operation, and charges for the accumulation
of appropriate reserves for current expenses not annually recur-
rent .)ut which are such as may reasona:oly be expected to be
incurred in accordance with sound accounting practice. "Opera-
Ling Expenses" shall not include any allowance for depreciaticn
or for rene~~~,~ls or replaccnents of capital assets of the system.
(C) "`Iet Reven!les" of the system shall mean the gross
revenues thereof, as defined in subsection (A}, after deducting
therefrom only the operating expenses of the same, as defined in
subsection (~).
(U) "Fiscal Year" shall mean the period commencing
on October .l of each ~~ear and continuin~~ to and including tale
' ~~ ,
t
(E) "Assessments" shall mean the proceeds to be derived
from the assessments to be levied against the lands and properties
to be specially benefited by the construction of the project, in-
eluding interest on such assessments and any penalties thereon and
money received upon the foreclosure of the liens of any such assess-
menu.
1.~; t Project: r'_uti:orizo~i. Tile Is_,uer is 'lere.)y autilor-
izec? to con_ trust the prof cct as defined in S~.~ction i . 02 (T~.) above.
ARTICLE II
AUTHO^1'7%~TIO[~1, TrPu'1SS, EYECUTIOi? ACID
i2EGIS`( nATION OF REVE?1UE T3Ui~1DS
?. ~l ~'~uthoriz~:tion of Revenue f3onds_ Su'Jjc~ct. and ~~ur-
:--~!l.atli: F_!7 t' 1:~rOVLS.7.OnS O~ tF113 1'_15i.rllment, O!)11<~atlUriS U~ 'C~7~
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~ •
]_g~tinY ±~r) 1)r? '-:nUSJIl .2= nnli~l' O~ C1"=~T?o:"Ir i':1tCr :.tIIC~ Si".l~l' T'.CV~nLl?
~;onds, Series 173" (herE~ina.tter sorneti:rles referred to as the
";lU.n.~S") arF? 1GIIE?;J~~ aL?tE1Ur1Z~d tU ~)? 1SSUE'_..~. In an ~g<3regate prlI1CZ`
paI amount not exceeding Three Hundred Twenty-three Thousand One
fIundred Dollars ($323,100) for the purpose of providing funds to pay
the cost of such project provided for in Section 1.02 hereof.
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~_~. lii~ r:=i?_r'(~ 'l'; t7~ Cllr-` Cj1l:E' ')i l:i1ClI: i. ~'}
l- l`.'~~ ~~; .`>1?111 })['. .1.11 tili'
denomination of $1,000.00, or any multiple thereof (except bond
numl)er one which shall be in thn denomination of $2,100), not
excceclin~ $1!?, 000 or the amount rliaturing in each year; shall be
numbered consecutively from 1 upward; shall bear interest at not
exceeding the legal rate per annum, payable on September 1, 1975,
and annually thereafter on Septembe.r,I of each year; and shall
mature serially in numerical order on September 1 of each year
in the years and amounts as fallow:
YEAR F~10UI1T YEAR AI•lOUNT YEAR A~dOUCiT
1973 $ 2,100 1991 $ 5,000 2004 $ 9,000
1979 3,000 1992 5,000 2005 10,000
1980 3,000 1993 6,000 2006 10,000
1981 3,000 1994 6,000 2007 11,000
1982 3,000 1995 6,000 2008 11,000
1983 3,000 1996 6,000 2009 12,000
1984 4,000 1997 7,000 2010 12,000
198 4,000 1998 7,000 2011 13,000
19ob 4,000 1999 7,000 2012 14,000
1987 46,000 2000 8,000 2013 15,000
1938 4,000 2001 8,000 2014 15,000
1989 4,000 2002 3,000 2015 15,OOG
1990 5,000 2003 9,000
2. U3 Tlaces of Payment. Su^h 1~onds shall be issued
in coupon form; shall be payable as to berth principal and interest-
at such place or places as the Issl)~~r sizall hereafter by resolution
designate, in la.~rful money of the United States of ~?merica; and
shall boar interest from the date of iss>>e, in accordance with
and anon surrender of the appurtenant interest coupons as they
severally mature, unless registered; 1)rovii?eci, hot•lr'~'('r, t~lc~.t bOndS
. __''_:! ,_)':T ~.::- --i l ~~:.1 ;~ ~_~ ~;':; U _ `umr~y'_C1, dClli! ~ ~.~1~OU ti it. _ !' .r~a_?_.'
"r'on~ Administration, t1, S. Dek~~artment of Agriculture, hereinafter
called the "Gov`rnment," shall be payable at "Finance Office, U. S.
Department of Agriculture, Farmers itorlo ~'~ ministration, 1520
'~ark~~t Street, St. Louis, i~iissouri G3103," or at such of?Ier places
as tiie '.lovernrient shall frU1Il time to time 1.n =.arltin<7 designate to
the Issuer.
2.Orl i~rovisions for Redemption. F~oncls maturinc; on or
:,r~~c,re r-~r:~ c:;~~k;~~r 1, 1`383 aria not su}~-ii?ct to redel~1f)ti.an k)rior to
t..;c>.r ~ ~>t=ccti~.ri~ sty.+t~~d. dates of m.zt-urit~r. , ",,, .-,:
Po_z~ls m~~turi_n•~ ., r., t.>,~. )_r
1, 1987 shall be redeemable in whole or in part, in inverse
numerical order, on any interest payment date, at par and
accrued interest and without premium, at the op-lion of the
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=C ssuer. After all 1~or~ds maturing Sc~ptf~mber 1, 1.987 st-tall
have been redeemed or s}lall h~;ve bean paid at maturit'~~ or
moneys .for such redemption or payment sha:1)_ have been
irrevocably set aside for such purpose, bonds other than
bonds maturing September 1, 1987 which shall mature September
1, 1986 and thereafter shall, at the option of the Issuer, be
•
r^. ;:1 C'.C:;l~}?1:' ] n `,v%lOlE~ Or 1_rl ~?c"ir't, 111 1nV~?I`SC' nUincrlCdl and nldtUrZty
order, on September 1, 1935 or on any interest pay:aont date there-
after at par and accrued interest, plus the following pre~:tiulr.s,
e:.~~ress~~d as percentages of the par value of the bonds so re-
deemed, it redeemed in the following years:
5~, if redeemed on September 1, 1985 or thereafter,
to and including September 1, 1988;
4~,, if redeemed. on September_ 1, 1989 car thereafter,
to and including September 1, 1992;
3~, if redeemed on September 1, 1993 or thereafter,
to and including Septem't~er 1, 1996;
29s, if redeemed on September 1, 1997 or thereafter,
to and including September 1, 2000;
lo, if redeemed on September 1, 2001 or thereafter,
to and including September 1, 2004;
4;it}-coat premium, if redeemed September 1, 2005 or
thereafter, but prior to maturity;
provided., hocvever, that at least thirty (30) days prior to the
redemption d~ to ~tiTritten notice of such redemption shall be given
to the aaying agents for the bonds and to each of tle registered
o:rn~,rs at t~.~ ~ ros;~ect~v~a auar~~sses as t:::~y :~;.~~__ur u;>or. t~:~~ r~~-
gistration boolts of the Clerk of the Issuer and shall b~ published
at least once in a financial ne~•rspaper published in the City of
ite.~r Yor}., i\iew York. Bonds held by the Government may b~ redeemed
by the ISSUer on any interest payment elate prior to maturity at
the price o.f par and accrued interest, witrlout prerlium.
2.05 r~;ecution of Ponds. The bonds shall be executed
in tide name of the Issuer by its *-Iayor
file Issuer shall i~c impressed tilercon,
?.~~~ its Clerk. In case any ono or more
havo sictned or sealed. any of thc> ;ponds
o ~:~`i_cPr of `i~o I SU~~r before t}ln bonds
[~;"•.ir~ ':1Ct L1~LLV .^O1(1 t?:1;~~ Ci`?)..L':~~~C',i, Sil~~'il
and the corporate seal of
attested and countersigned
of the' officors ~.vilo .~ha)_1
shall cease to be such
~'~ slCTned and s^al~d i'?c1VC?
:ion,=};' t~.":"~ 11 E::~:t~rt;l(_'.lE::;:~ }~~,
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SGi.~.: i1I1C1 C:E'._L-L'Jl_'I~GCI ~~i ilc_i'~''1I1 j~:'"~OV:L(1C?i~ dPiC ?Il~i'~/ ~~C? :L.~SUc?C: ~;:-i if tf1C
~;~_~t: son :~ha s ic~ned or sealed such binds ilad not ceased to hold such
of ficc. Tire validation certificate endorsed on file bones srlall
b^ exeGUted by the .Mayor. ~1ny bond may be sicined and sealed on
behalf of th~~ Issuer by such person ~~~ilo at the actual tine of the
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C'_::~'ClIt10:1 O`~ such }7011(:'1 S}1211 }1C)1Cl the ~JrO~)E32~ OLi1CC? OE ti1C' 1.Sili~?L,
C.i.}.~tlOil'Ji: at thy' date C)f 5>>Cil }:)OnCi~ .C i7C11 t)C?rSnrl I~~ll~ IiOt have 11E'ld
s>>ch o Efic~u or n:sy not have been so author i med. Tllc coupons
attached to the bends shall ba auth~aIlttCatect Tti~ til file facsimile
signatures of any present or future "-lay^r and Clerk of the Is_~~~er.
`~''ZE' Issllcr iila~' ad01~t anC~ USE? fOr Si1Ci7 p»1"1)^S~'S t}1 C' ~~1CS~iTt11E'
signatures of any sncil persons wllo shall }lave held such offioes
at any tide after the date of th~~ adoption of tills instrument,
not~:71 t-hstan~~inu that either or both shall have ceasr~d to Mold
s>>cl offi.r-e at the tir:~e the bonds shall bF-~ actually sold and
delivered.
2.0G T~egoti~abilit-y and Registration. The bonds shall
be and sh?11 have all the gl~alities and incidents of negotiable
instruments under the la~~r merchant and file La:~rG of the State of
Florida, and each successive holder, in accepting any of the ')onds
or the coupons appertaining thereto, shall bP conclusively deemed
to have a<,}reed that the bonds shall be and have all of saki quali-
ties and incidents of negotiable lost-.ruments.
The b^nds may be registered, at the option of tide holder,
as to both principal and interest- upon the books kept- for the
registration and transf=er of_ bonds by the Cler};, as 3ond Registrar,
and endorsed upon the bonds by the Lond Registrar in the sp=.ce
prova_-zad thereon. ?otter such rer,?_stration, no transfer or Lh~
!J'._.t11S ~i1~3.ii ,):. Vdl1':~ lli71L':» 1CaaC~-.. sir t:13 Ol~iCt_ Oi i:.'.=_' ti 0:^.d i~~? j~StTrar
by the registered o~~aner or by his duly authorised agent or repre- ,
sentative and similarly noted on the binds, b»t at file expense
of t_le holder the bonds lnay be discllarg~cl from registration by
})clog in like manner transferred to bearer, and thereupon trans-
ferability by delivery shall be resCored. ~1t t}le option and expense
of the holder, the bonds may thereafter again from time to time be
rc,~Tistered or transferred to bearer as before. `1'tle Bond Regis+-rar
sha].1 TlOt }~•~ required to make any such transfer of }x)n1s clurinq
fifteen (15) days next preceding -sn interest: ~.)ay~~lent c'~ate on the
bonds or, in the case of any proposed redemption of })Dods, a.-ter_
such }ponds }-lave been selected for recY~mp-lion. The r_~erson in ~•rhose
name any i~ond shall }~~~ registered shall be de^i14'.Ci and reardeci as
-7-
h,
the absolute owner thereof for al_1 purposes, and payment of or
on account of the principal of any 4~ond r::~d ti.e _int.erest on any
bond shall be made only to or u~~on the order of the registered
owner thereof or his legal representative. All such payments
shall be valid and effectual to satisfy and discharge the liability
upon such bond including the interest thereon to the extent of
the sum or sums so paid.
2.07 Bonds tiiutilated, Destroyed, Stolen or Lost. In
case any bond shall become mutilated, or be destroyed, stolen or
lost, the Issuer 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 substitution for the bond destroyed, stolen or lost, and upon
the owner furnishing the Issuer satisfactory indemnity and comply-
ing with such other reasonable regulations and conditions as the
Issuer may prescribe and paying such expenses as the Issuer may
incur. All bonds so surrendered shall be cancelled by the C1erY..
If any such bonds shall have matured or be about to mature, 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
~'r_all c:On:~tltUr~ Or1Gln~i., a'ad~ _?O'.3_L :Oi?~Yu~'vCii} JC7_''_~<;t3`__i,:1S O`1 t: S:'
part of the Issuer ~~~hether or not tho lost, 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 on and source and security for payment from the funds,
as hereinafter pledged, to the same extent as all other bonds issued
hereunder.
2,03 Form of Bonds. The text of the bonds shall be in
substantially the following form, with only such omissions, inser-
tions and variations as may be necessary at~d desirable and approved
by the P~Iayor prior to the issuance thereof (~~rhich aparoval may
be presu;,led by his execution of the bonds and the Issuer's delivery
of the bonds to the purcizaser thereof)
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F
1
UidIT~:D STc'1T~. ~ GI ~'~:~iEI;ICA
STA`..PE Or' FLORIDA
COUN~~'Y r~L, I~,~,RE
CI`iY OF CC,ERi~IO~iT
j'IATE1;: t~ND SE4^:?';R Ri~V%ivUr' BOND
SERIES 1975
KcIOI^I ALL P~iEi~ BY TIIESE PP,ESEL?T5, that the City of Clermont,
a public body created and existing under and by virtue of the Laws
of the State of Florida (hereinafter sometimes referred to as the
"Issuer"), for value received, hereby promises to pay to the bearer,
or if this boi:d be registered to the registered holder as herein
provided, on the first day of September,l9_, from the special
funds hereinafter mentioned, the principal sum of
THOUSA?~1D DOLLARS
and to pay interest thereon, from the date of the delivery of this
bond to the purchaser thereof, solely from said special funds, at
the rate of
per centtun
~) per annum,
payable on September 1, 1975 and annually thereafter on the .first
day of September of each year upon the presentation and surrender
of the annexed coupons as they severally fall due. Both principal
of and interest on this bond are payable at
in lawful money of the United States
of America.
This bond is one of an authorized issue of bonds in the
a.Tgrngate principal amount of $3?3 ,10~) of liko date, tenor and
~~L~'Ct, °:iCept ~~:i t0 number, L:(.:IlOPilifiatlOn, lntE-'rG'3t rdte ~1L d.1.1
bonds do not bear the same rate of interest) and date of maturity,
issued to finance the cost of acquiring, erecting and constructing
extensions and improvements to the combined municipal crater and
sewer system of the Issuer, hereinafter referred to as the "system",
under the authority of and in full compliance with the Constitution
and Statutes of the State of Florida, particularly Chapter 159,
Part I, Florida Statutes,-and a resolution duly enacted by the
Issuer on , 1974 {herein referred to as the
"Resolution"), and is subject to all the terms and conditions
os such Resolution.
'iris bond and th` interest thereon are payable solely
-9-
rom and ;;r,curc~cz b~~ a l.i n ul~;c~~, anu a ple~lclc of uc~ n~:~t revenu~s
cc~ be derived froca u:~ o}~erati,ri~ o.`. the s1~st.em, the= praceeds of
cE~rtain tt~uniciPal exciso taxes, the proceeds o.f_ Assc~ssrzrents
1~-~viF~d on thc>_ lands specially benefit;~d by the construction
of such project and a pledge of all moneys of the
Issuer derived from sources other than ad valorerl taxation and
legally available for such purpose, in the manner described i_n the
Resolution, It is expressly agreed by the holder of th~.s bond that
the full faith and credit of the Issuer are not pledged to the
a payment of the principal of and interest on this bond and that such
holder shall never have the right to require or compel the exercise
of any taxing power of the Issuer to the payment of such principal
and interest or the cost of maintaining, repairing and operating the
system. This bond and the obligation evidenced hereby shall not
->,
constitute a lien upon the system or any part thereof or upon any
other property of the Issuer or situated within its corporate limits,
but shall constitute a lien only on the revenues derived from the
operation of the system, said excise taxes and said Assessments.
i
~, The lien of the holders of the bonds of the issue of
which this bond is one on the revenues of the system and the excise
taxes is junior, subordinate and inferior in every respect to the
lien on such revenues and excise taxes in favor of the Issuer's
outstanding taater and Sewer Revenue Bonds, dated November 1, 1970,
and Water and Sewer Revenue Refunding Bonds, Series 1972, dated
?'i':~vember 1, 1972, hereinafter referred to as the."prior lien obli-
j _. `. i.~:1~ ~~ ... __ i:~SU°.C :il] tYl°_ Yi ~~171u~ i~~n i'?~ii ti=~`J'~f13'? `°~~ i:ld ~'~r•~ed
with the holders of the bonds of the issue of which this bond is one
that it will not hereafter issue any additional obligations payable
from the revenues of the system or the excise taxes on a parity with
the prior lien obligations.
In and by the Resolution, the Issuer has covenanted and
agreed with the holders of the bonds of this issue that it will
fix, establish, revise from time to time whenever necessary,
maintain and collect always such fees, .rates, rentals and other
chargF~s for the use of the product, services and facilities of
the system which, toge uer with the proceeds of said exClSe taxes
and saiu Assessments, will always produce cash revenues sufficient to
I~a'r>, and out of such funds pay, as the same sha.tl b~~~come due,
the principal and interest on the prior lion ablutions and the bonds,
-10-
+~ •
the necessary expenses of operating and maintaining the system
Gnd alI reserve, Sinking Fund or other payments required by tine
r<esolution, and that such rates, rentals, fees and other charges
will not be reduced so as to be insufficient to provide funds
for such purposes, and that it will levy and collect said excise
taxes at such rates, not exceeding the maximum rates permitted
by law, as shall be necessary to provide funds which, together
with the revenues of
~.~Jill ue sufficient to
shall become due, the
necessary expenses of
reserve, Sinking Fund
and that the rates of
the system and the proceeds of the Assessments,
pay, and out of such funds pay, as the same
principal of and interest on the bonds, the
operating and maintaining the s~~stem and all
or other payments required by the Resolution,
such excise taxes grill not be reduced so as
to be insufficient to provide funds for such purposes.
The bonds of this issue maturing on or before Septe~~ber 1,
l9^a5 are not subject to redemption prior to their respective stated
dates of maturity. Bonds maturing September 1, 1987 shall be
redeemable in whole or in part, in inverse numerical order, on
any interest payment date, at par and accrued interest and
without premium, at the option of the Issuer. After all bonds
maturing September 1, 1987 shall have been redeemed or shall
have been paid at maturity or moneys for such redemption or
payment shall have been irrevocably set aside for such purpose,
~O.`.~.5 ~ ~~~~r ~h~?:1 L`0=1~~5 ?i.a ~LlrLt^.^y S ~',)t~~ 1beY' 1, 190 ,' ~~7'.^.1Ci: Sv!-.311
mature September 1, 1986 and thereafter shall, at the option of ~
the Issuer be redeemable in whole or in part, in inverse numerical
and maturity order, on September 1, 1985 or on any interest pay-
ment date thereafter at par and accrued interest, plus the following
premiums, expressed as percentages of the par value of the bonds
so redeemed, i.f redeemed in the following years:
5~, iE redeer~ecl on Septemb~'r 1, 19u^5 or t}iereaEt<~r,
to and including September 1, 1983;
4~, if_ redeemed on Septem}~er 1, 1989 or_ thereafter,
to and including September 1, 1992;
3 ~, i.f redeemed on September 1, 1993 or thereafter,
to and including September 1, 1996;
7_'~>, if rocleemed on September 1, 1997 or theroaftor,
to and including September 1,2000;
1',s, if redeemed on Septer~bc,r 1, 2001 or theroaftor,
to and including September 1, 2001;
;it.ae,:_zt ~)r'e[ai ur~i, if redeem<~~i September I, 2007 o_r
th~:reafter, b~.zt prior to maturity; .
pro%'1dF~d, l10~.9t~J~'r , tl"1~1~ T10~.1C:t' C,'`+l1Cil 1"f_tilE:Cl•,~tiJn ;:~ha 1.1 I)E' r7.1'JC[i
in the manner regt.li.rcd by the Rcs~al~ltio;l.
It is hereby certifitn.<.1 and recited that al_~1 zcts, con-
ditions ~~lnd things required to e..ist, to hap~~en ~~n: to be performr_~d
precedent to and in the issuance of this bond, exist, have happened
and have been performed, in regular and due form arzd time as re-
quired by the Laws and Constitution of the State of Florida appli-
cable thereto, and that the issuance of this bond, and of the
issue of bonds of which this bond is one, does-not violate any con-
stitutional, statutory or charter limitations or provisions.
This bond and the coupons appertaining thereto are and
have all the qualities and incidents of negotiable instruments
under the law merchant and the Laws of the State of Florida.
This bond may be registered as to both principal and
interest in accordance with the provisions endorsed hereon.
IN ~9ITNESS T•~HEREOF, the City of Clermont, Florida,
has issued this bond and has caused the same to be executed in its
name and on its behalf by its h4ayor and its corporate seal to be
impressed hereon, attested and countersigned by its Cler}c, all as
of
(SEAL)
A'~'"ESTED A~iD CC)U[vTERSIuNGD:
Clerk
FORM OF COUPOiJ
rIo . $
19
On the lst day of September, 19 unless the bond to
which this coupon is attached is callable and shall have begin
previously duly called for prior redemption and payment thereof
duly made or provided for, the City of. Clermont, Florida, ~•;ill
pay to the bearer at Florida, frorn
the special funds described in the bond to ~~~hich this coupon is
attached, the amount shown hereon in lawful money of the United
States of America, upon presentation and surr_ende.r of this coupon,
being one year's interest -then clue on iLs :vater_ ar.d Sewer Revenuo
CITY OF CLERP•10i1T, FLORIDA
By
i4ayor
-1~-
•
!?ond, da teci
(SEAL)
ATTESTED A?`1D COUi1TERSIG~diD:
Clerk
CI`.CY OF CLERi~iC)~~"t', r'LORIDi:
By
-iay o r
FOR~~I OF VALIDATIOII CERTIFICATE
•
This bond is one of a series of bonds ~•~hich were vali-
dated by judgment of the Circuit Court for Lake County, Florida
rendered on , 19
Mayor
PROVISIONS FOR REGISTRATION
This bond may be registered as to both principal and
interest on the books kept by said Clerk, as Bond Registrar; such
registration being .noted hereon by the Bond Registrar in the
registration blank below, the coupons being surrendered and the
interest being payable only to the registered holder, remitted by
mail, after which registration no transfer shall be valid unless
made on said books by the registered holder or his legal representa-
tive and similarly noted in the registration blank below, but it
;~,A,; ~;,~ ci_s~`: r ~~d ~.ro~ 1F~gi;~~at~~,,, ~~., `~e~.nc7 ``_:~.:~s _._-~c' ~~ ~~..a~o.-,
after which it shall be transferable by delivery, or it may again ~
be registered as before. Upon reconversion of this bond into a
coupon bond, coupons representing the interest to accrue upon
the bond to date of maturity shall be attacr-ed hereto.
Date of Name and Address of Signature of
Registration Registered Owner Bond ReUistrar
, _l9 ~o.
-13-
•
•
AP.TICLE III
COVETT~i;T~ , 5P~,'~' I~~L t~ UiTDS
~ANL~ APPLICATIOi1 TTTEREOF
3.0.1 Bonds Not To Tae Indebtedness of Issuer. PTeith°r
tine bonds nor the coupons attached thereto shall bo o:r constitute
rencral obligations or indebtedness of the Issuer as "bonds" within
the meaning of Article VII, Section 12 of the Constitution of
Florida, but shall be payable solely from and secured by a lien
upon and a pledge of said net revenues, excise taxes and Assessments, and
pledge of all moneys of the Issuer derived from sources other than
ad valorem taxation and legally available for such purpose, as
herein provided. No owner or holder of any bond or coupon issued
hereunder shall ever have the right to compel the exercise of any
ad valorem taxing power to pay such bond or coupon or the cost of
operating and maintaining the system, or be entitled to payment of
such bond or coupon from any funds of the Issuer except from the
net revenues derived from the operation of the system, the e::cise
taxes, the Assessments and all moneys of the Issuer derived from sources
other than ad valorem taxation and legally available for such purpose,
in the manner provided herein.
3.02 Security for Bonds The payment of the debt ser-
vice of all of the bonds issued hereunder shall be secured forthwith
equally and ratably by a pledge of and a lien upon the net revenues
derived from the operation of the system, as now or hereafter
.. ... ~ZJr~l.u vC~'.~ ..i-~Cl F'AL. LJ~ 1., :1„°EJ, A_ri ~~ ?b~~C~Jbull~:'.~5 .~l~.i ct N~ ,1y ~ i.~~ 3.L1 mo nc?Vo O.
_. J ~ i
the Issuer derived from sources other than ad valorem taxation and
legally available for such purpose. The Issuer does hereby irrevoc-
ably pledge such funds to the payment of the principal of and
interest on the bonds issued pursuant to this instrument and to the
pa1~ment into the Sin}:ing Fund at the times provided of the sums
required to secure. the holders of the bonds issued hereunder
the payment of the principal of and interest thereon at the res-
p~ctive matl.lrities of_ the bonds and coupons so held by them.
`i'he lien on and pledge of the revenues of the system and
the excise taxes in favor of the holders of the bonds is junior,
subordinate and inferior in every respect to the pledge of and
li~~r. on such revenues and excise ta:~es in favor of the holders of
_l~~
4
F
t':1,' Issuer_'s said outstanding prior lien o}~1i~;ation,:>>_
3.03 ~1~~pli.cation of bond I'roce:~as. The Issuer hereby
covenants that i.t wiil establisiz with tii,v EX~t~ANC-~~
Bank, C LC ~9 ~'r Florida, a separate account or accounts
(herein collectively called the "Construction Account") into
which shall he deposited the proceeds from the sale of the bonds
herein authorized (except such portion thereof as shall be necessary
to pay interest on the bonds during the construction of the project,
which shall be deposited in the Sinking Fund) and the additional
funds, if any, required to assure payment in full of the .cost of
the project. Withdrawals from the Construction Account shall be
made only for such purposes as shall have been previously speci-
fied in the project cost estimates and as shall be approved by
the Issuer's consulting engineers for the p~'oject.
The Issuer's share of any liquidated damages or other
moneys paid by defaulting contractors or their sureties, and all
proceeds of insurance compensating for damages to the project
during the period of construction, shall be deposited in the Con-
struction Account to assure completion of the project.
P~loneys in the Construction Account shall be secured by
the depository bank in accordance with U. S. Treasury Department
Circular 176 and in the manner prescribed by the Laws of the State
of Florida relating to the securing of public funds. Nhen the moneys
:1x1. .. :~: ~'. _ :L.^. :~.;C? ::oi'.S ~..~'_: ; _10'l rtCC'J~_1:.~' :?::C~~.`.Ci t.~ .~. ~ :_~:~.d ~"C1 ...1_,-
bursements o.-~ account of the project for the nest 90 days, the ~
Issuer ,aay direct the depository bank to invest such excess funds
in direct obligations of or obligations the principal of and inter-
est on which are guaranteed by the United States of ~'~merica, which
shall be subject to redemption at any time at face vacua by the
holder thereof, The earnings from any such investment shall be
deposited in the Construction Account.
Fvhen the construction of the project has been completed
and all construction costs }?ave been paid in full, all funds
rcmaininc~ in the Construction Account shall he dcr~osited in the
Sin::ing Fund hereinafter established, and the Construction Account
shall be closed.
_l~_
~ •
x'111 I;~OTlr'S':; depOSZ ted 1. r1 Sc71C~ C'OnStrUCtiOn T~:OOOUnt sha1:L
be and co;lsti~.ute a trust fund created for the purposes stated,
and them is hereby created a lion u~ on such fun~~l in favor of the
holders of the bonds until the moneys thereon shall have been
applied .in accordance with this instrument.
3.04 Covenants of the _Lssuer. So long as any of t:~e
principal of or interest on any of the bonds shall be outstanding
and unpaid, or until there shall have been set apart in the Sinking
Fund herein established, including the Reserve Account therein,
a sum sufficient to pay, when due, the entire principal of the
bonds remaining unpaid, together with interest accrued and to
accrue thereon, the Issuer covenants with the holders of any and
all of the bonds issued ,pursuant to this instrument as follows:
(A) Annual Budget of Current Expenses. The Issuer
covenants and agrees that on or before the date of delivery of
the bonds to the purchaser thereof, it will adopt a budget of
Current Expenses for the system for the remainder of the then
current fiscal year and thereafter, on or before the first day of
each fiscal year during which any of the bonds are outstanding, it
will adopt an Annual Budget of Current Expenses for the ensuing
fiscal year, and will mail a copy of such budget or amendments
thereto to any requesting bondholder. Current Expenses shall in-
clude all reasonable and necessary costs of operating, repairing,
.-~-i ..+__. _'.':~ C2~j c.i:~~ ?_'.i~urlnG F~~.F S`~/=~~_~iZ'~~ ~:J`lt 5C?~~i1 .__':<:~?_:Cis ~~'.r'` r"r.=,lt~'..iQ P.,
payments into the Sinking Fund and payments into the Reserve Account.
The Issuer covenants that the Current Expenses incurred in any year
;gill not exceed the reasonable and necessary amounts required
therefor, and that it Frill not expend any amount or incur any
obligations for the operation, maintenance and repair in excess
of the amount provided for Current Expenses in the Annual Budget,
e}:cept upon resolution of the City Council that such expenses
are necessary to operate and maintain the system.
(B) Revenue Fund. The Issuer covenants and agrees
that on or before the date of delivery of the bonds to the pur-
chaser thereof, it will establish with a depository in the State
of .i'lorida, caliich is a member of the Federal Deposit insurance
-16-
~ •
Co.rj~~oration and ~,~;hich is eligible un der the La~~;s of the: State of:
~~'laricla t:? rec~~ive municipal fun:. and maintain so long as any
of ttre bonc:.'s are out~tandirg, a special fund to be known as the
"1975 Clermont GJ~~.ter avid Server System Revenue Fund", hereinafter
called tl.e "Revenue Fund". The Revenue Fund shall be held by the
Issuer separate and apart from all Qther funds and shall be
expended and used only in the manner and order specified in
paragraphs (C), (D) and (E} of this Section.
The Issuer further covenants and agrees that whenever,
from time to time, at any time deposits from the revenues of the
system shall have been made sufficiently for minimum compliance
with the covenants, requirements and provisions of the ordinances
enacted by the Issuer authorizing issuance of the prior lien obli-
gations, and such required deposits shall be made monthly, the
balance of any and all revenues of the system and/or any balance
of moneys on deposit in. the "Revenue Fund" heretofore created
and established for the benefit of the prior lien obligations which
shall be in excess of the requirements for minimum compliance with
such covenants, requirements and provisions of said ordinances shall
forthcrith, and rot less frequently than monthly, be deposited into
said Revenue Fund hereby created. 69henever the said covenants,
requirements and provisions of such ordinances shall no longer re-
quire deposits of revenues of the system for the debt service of
..-._ ?` :? or ,_-'11 ,>...,1~?? ~...~J'.:S ~ l_:~ ~:i:1'c'r :ii._.~ 1_ ~ _~-~'. . _ _ ~TltO ti?c~'.
P.e~.~enue Fund, promptly as received, all cash income received from`
the ownership and operation of the system.
(C) Bond and Interest Sinking Fund. The Issuer cove-
Hants and agrees to establish with a depository in the State of
Florida, which is a member of the Federal -~eposit Insurance Corp-
oration, and which is eligib]_e under the Laws of the State of
Florida to receive municipal funds a special fund or funds, coll.ec-
tivc~ly called "1975 Clermont ~~7ater and Sewer System Bond and Interest
Sinl:inq Fund" , he.reinaf-ter called the "Si,~king Fund" , to be used
exclusively for the purposes hereinafter mentioned. After delivery
of the bonds to the purchaser thereof, the Issuer shall transfer
on or before the 15tH day of each month from the Revenue rung and
-17-
•
d^posit to the credit of the.Sinking Fund the follo~,aing amounts:
(.1) F~ sum equal to 1!12 of the amount of one year's
interes~ on all the L-onds glen o~rtsta;iding, together with L-he
amount of any deficiency in prior deposits for interest; and
(2} Beginning on September 15, 1977, a Burn equal to
1/12 of the principal of the bonds maturing on the next succeed-
ing anniversary date, together with the amount of any deficiency
in prior deposits for principal.
(3) After fulfillment of the requirements of para-
graphs (C)(1) and (2), the Issuer shall transfer on or before the
15th day of each month from the Revenue Fund and deposit to the
credit of a special account in the Sinking Fund, herein called
the "Reserve Account", the sum of One hundred Sixty Dollars {$160.00)
until such time as the funds and investments therein shall equal
Nineteen Thousand Two Hundred Dollars ($19,200), and monthly there-
after such amount as may be necessary to maintain in the Reserve
Account the sum of Nineteen Thousand Two Hundred Dollars ($19,200)
but not exceeding One Hundred Sixty Dollars ($160.00) monthly. rloneys
in the Reserve Account shall be used only for (1) paying the cost
of repairing or replacing any damage to the system which shall be
caused by an unforeseen catastrophe, (2) constructing improve-
menu or extensions to the system which shall increase its net
revenues and which shall be approved by said consulting engineers,
__:!~~ 15'1 ii°C~ ~ :%ii i nOt ~hC-'.!? :~ y_. ~,i~~=3'_1Lt ,::1~.:~i Orly ti'.'` iJi`U_
visions of this instrument, and {3) paying the principal o.f and
interest on the bonds in the event that the moneys in the Sinking
Fuld shall ever be insufficient to meet such payments.
(D) Operation of Maintenance Fund. t'+hene~rer provision
f_or the payment of the reasonable current expenses of the operating,
maintaining and repairing of the system pursuant to the provisions
of said ordinances authorizing issuance of the prior lien obliga-
tions shall e~;pire or cease by reasor_ of the terms of such ordinances,
or for any o+.her .reason., the Issuer covenants and agrees to
establish :•~ith a depositary in the State o; Florida, which is a
r~r~,nbcr. of the T'eaoral Deposit Insurance Corporation, ana which is
-13-
•
•
cl_ic?iL>l.~v~ ur.d~~:t' the La~,rs c)f the State of 1lorida to rer_eive munici-
~)dl ~UndS, a special ftlncl t_O k]FJ r:.n0`~Jn as trl(' "C:lcrmont ~'Jater
anr3 S~,wer System Operation and 'Maintenance Fund", herein called
til('_ "O~ ~_Y'atlOn and l~lallltf'nanCC FUI1C1," S9h1C~i Sr1111 b~~ tlSed e;CCIU-
lively for the purpose of receiving fu?ids to be transferred monthly
by the Issuer from tho Revenue Fund, and for paying, as they
accrue, the Current Ixpenses of the system pursuant to the Annual
Budget. After delivery of the bonds to the purchaser thereof,
and after having made the deposits to the S.inkinc~ Fund as pro-
vided in paragraph (C) above, the Issuer shall transfer on or
before the 15th day of each month from the Revenue Fund arld
deposit to the credit of the Operating and PMaintenance Fund a sum
sufficient to pay the Current Expenses of the system fo.r the
current month, all in accordance with the Annual Budget. Any
balance remaining in tale Operation and LMaintenance Fund at the
end of the fiscal year and not required to pay costs incurred
during said fiscal year shall b~ deposited promptly into t'ne
(E) Excise Taxes Fund and Special Assessments Fund. The
Issuer covenants and agrees to establish with a depository in
the State of Florida, which is a member of the Federal Deposit
Insurance Corporation, and which is eligible under the Laws of
the State of Florida to receive municipal funds, a special fund
~`1 ._,~_ ~~.;7':Jti~`l :S _?fin "977 Ci°i?!:O:lL liXC_..S° Ta?:~S I•and"~ h°reir.-
After called the "Excise Taxes r'unci" .
The Issuer further covenants and agrees that c•rilen~ver,
from time to tim°, at any time deposits from the excise taxes
s!~lall have been raacte sufficiently for minimum compliance with the
covenants, .requirements and provisions o~ the ordinances enacted
by the Issuer_ authorizing issuance of the prior lien obligations,
and such required deposits shall be made monthly, the balance of
moneys on deposit in the "1972 excise Taxes Funcl" heretofore
crc.~ted and establishE~u for the benefit of the prior lien obliga-
tion~, dated ;lovembe.r 1, 1972, which shall be in excess of the
recruir~~1nents for mini.i~um compliance with such covenants, require-
ment, and provi~~ions of lair? ordinances shall forthwith, and not
lass +=r~c;;:,ently than rnonth:Ly, b~ cleposi.t~u into said 1975 Excise
-19-
• •
`~':'ixC?S FUIld 11'rei~y Created. tidhL~rl:'VL'r t17E' Gzd COVellantS, require-
^'nt.S .::1d i?rJV1S7.0i1S of SLrCii OrdlllanCe:~ Sh 11 n0 lOnci+''.r' rG~u1rP
CSC[%O~lt~ O~ ~.1E' OY.Clse ta1:CS fOr' the :~;_'CJt S('rV1C~' G~ tll~' prior
lier. obligations, the Issuer snail. deposit into the 1975 ~:xcise
Ta:~:es Fund, pro:~Iptly as received, all or the excise taxes as soon
as the'sam~ are collected by the Issuer.
Whenever by reason of the insufficiency of moneys on
deposit in the Revenue Fund the Issuer is not abbe to ma}:e promptly
the currant monthly payments required to be made pursuant to the
provisions of paragraphs (C) and (D) above, there shall be paid
into the Revenue Fund from the moneys on deposit in the 1975
Excise Taxes Fund whatever sums are necessary to cure such ex-
isting deficit. After the 15th day of each month, if all of the
above-required current payments have been made from the Revenue
Furd, and from the 1975 Excise Taxes Fund to the extent neces-
sary, the balance of arry moneys on c:eposit in the 1975 Excise
Taxes Fund may be withdrawn and used by the Issuer for any lawful
municipal purpose.
The Issuer covenants and agrees to establish with a
depository irr the State of Florida, which is a member of the
Federal Deposit Insurance Corporation, and which is eligible
under the Laws of the State of Florida to receive municipal
funds, a special fund to be known as the "Clermont Water and
-. 1 :J :J 1.~G~ tJ ~ LA a~ , "l~._ I 1.1~:.~-
.S. ~~pP,''c..'i`_ L'I1'~S S;~iNrJ131 :>:~ 3' ~ " ". ? ,;:~~ '•'7
the "Assessments Fund," which shall be used exclusively
for the purpose of receiving, as soon as the same are collected
by the Issuer, all of the Assessments. Such portion of the
.Assessments as shall represent interest shall be forthwith with-
drawn from the Assessments Fund and deposited to the credit of
the Sinking Fund and applied to the payment of interest next
maturing on the Bonds and to a corresponding reduction in the
c urrent amounts required to be deposited from the Revenue Fund
into the Sinking Fund pursuant to the provisions of paragraph
(C)(1) above. The Issuer shall be mandatorily obligated to use
the balance of the moneys at any time remaining on deposit in -the
:'assessments Fund, to the extent possible, to purchase Bonds
-20-
:natur_ii1c~ Se~~`_ecnb~~r. ] , ?.9~7 ~:+_ ~.'.1e ~~cst ~~i_~ices <~~;~t~~in:tl~le, but
at price; not greater than par and accrued interest, or to redeem
such Bonds maturi_nq Seternber 1, 19;7 prior to maturity on the
next ensuing interest payment date i.n tho mangler provic:~d herein,
or to pay the sa?ne upon the maturity thereof i.f the next interest
payment date shall be September ]_, 1987; provided, however, if
on any September 1 prior to September 1, 1987 moneys on deposit
in the Sinking Fund, including the Reserve F~ccount therein,
shall be insufficient to pay the principal of any Bonds
maturing on such date, the Issuer shall not be required to apply
.funds on deposit in the Assessments Fund to the purchase or re-
demption prior to maturity of Bonds maturing on September 1, 1987
to the extent that the Issuer shall use moneys in the Assess-
ments Fund for the payment of such Bonds then maturing, and the
Issuer shall be required to use such funds on deposit in the
Assessments Fund for the payment of the principal of any Bonds
maturing prior to September 1, 1987 whenever the moneys on
deposit to the credit of the Sinking Fund shall be insufficient
for such purpose. ~~~henever moneys in the Assessments Fund
shall have been applied to pay the principal of any Bonds
maturing prior to September 1, 1987, the monthly deposits required
by paragraph (C)(2) above for all months remaining prior to
September 1, 1987 shall be increased by such amount as shall be
necessary to restore to the Assessments Fund by September 1, 1987
.. __-? diiiOl!rit `~`'~..._.,ti .. ~:C1il i:=.7c. .. _.:~n '>v__~har:~:..°.•m t:~1`~•. :I_.Cill~. _C)~ i_:"~
payment of the principal of Bands maturing prior to September l,~
1987. Whenever all Bonds maturing September ]_, 1987 shall have
been retired, all moneys remaining on deposit to the credit of
the f~ssessments Fund and all of the Assessments which may subse-
quently be deposited therein sha_11 be promptly withdrawn from
the Assessments Fund and deposited to the credit of the Reserve
ACCOUnt.
The Issuer covenants that it will forthwith, ,,~henever
it shall first b: timely, adopt all resolutions and ordinances,
hold all hearings and perform all acts cahich ar~~~ conditions pre-
cedent to and are necessary for the lawful levy and collection
or such special assessments against all lands and properties
specially b~:.,nef_Lted by the con~~truction of the Project.
-20A-
• •
(~) ~Ef1C1E-`i1C~I Or' ~~XCE_SS L'i.1I1C'~S. l'JCl?Cl2V~'C_ i~'t/ r°_~1SOn O1
file insufficiency o` rnone~.rs on dei.~osit in the R.evoruc Fund the
Issuer is not able to make piolnptly file cl:rrellt month:Ly nay~llents
reruired to be made pursuant to the provisions of paragraph (C)
above, ~ the Issuer covenants anti a~~;rees that it jvi11 pay into the
Revenue Fund front any moneys of the Issuer derived from sources
other than ad valorem taxation and legally avail.a.ble for such
purpose whatever sums arm necessary to cure such eristillg defi-
cit. Subject to the provisions for the disposition of revenues
i.n paragraphs (C) and (D), which are cumulative, the Issuer shall,
on or before the 15th day of September of each year, transfer to
the Reserve Account in the Sinking Fund the balance of moneys re-
maining in the Revenue Fund for the prompt use by the Issuer to
redeem bonds in inverse numerical and maturity order or to acquire
outstanding bonds for retirement at not exceeding the price of par
and accrued interest, to the extent that funds and investments in the
Reserve Account exceed the amount of Nineteen Thousand Two Hundred
Dollars ($1,200}, or the Issuer may use such balance of moneys re-
-ZOD-
•
maini.nR ir. the R~Vf_'IlllF' F;znd for the payment of debt service on
subordinate obligations.
(G) Trust Fu.zds. Tile funds and accounts crzated anti
est~blishc.d by this instrument shall constitute trust fund, for
the purposes provided herein for such f~_ulds. All of such funds,
except as h~r.einafter provided, shall be continuously secured in
the same manner as municipal deposits of funds are required to be
secured by the Laws of the State of Florida. Moneys on deposit to
the credit of the Reserve Account shall be invested by the deposi-
tory bark, upon request by the Issuer, in direct obligations of,
or obligations the principal of and interest on which are guaran-
teed by the United States of America and ~ehich shall be subject to
redemption at face value at any time by the holder thereof at the
option or such holder; and the moneys on deposit to the credit of
the Sinking Fund and the Assessments Fund may be so invested in such
obligations which shall-mature not later than fifteen (15) days prior to
the date on which such moneys shall be needed to. nay the principal of ~.nd
interest on the bonds in the manner herein provided, but moneys
on deposit to the credit of the P.evenue Fund, the 1975 Excise
Taxes Fund and the Operation and Maintenance Fund shall not be
invested at any time. The securities so purchased as an invest-
ment of funds shall be deemed at all times to be a part of the
accor~nt from which the sai d investment caas ~r~ithdra~•;n, and the
ir: l.. -arc:: :ate ~?CC.~Ulnc, to°r'~On d:lu ~~_7 ,~ `Jr0?-1. _ r'~'a~ l;: °_:.~ ~"_~:t'.r E?.%r0,~:
shall be credited to such account and any loss resulting from ~
SLCh investment shall likewise be charged to said account.
(H) Rates and Charges. The Issuer covenants and
agre4.~s to maintain and collect, so long as any of the bonds are
outstanding, such schedule of rates and charges for the services
and facilities of the system which, together ~•~ith the excise taxes and
the Assessm~.nts, will produce revenues which shall be sufficient to pro-
v.iue fo.r ci.~rrent debt service and reserve requirements fo:c the said out-
standing prior lien obli~~ations and for the bonds herein authorized
and pay the reasonable expenses of op~='ration and maintenance of
the syster.~; and the Issuer covenants and agrees tl;at so lone as
any of the bonds arc' outstanding and unpaid, at the same time and.
.~ 1
• •
in like mannr~~r that the Issuer. preE~ar.es its F:nnual 13uuget of thM
CUrrCi~t l~i:p~?nS`--_` , tY;i'. ~SSL1E'.r sf1a11 anT'1Llal1V ~)reparE' aI"1 <'Stlmc3~.~
oi= gross revenues to be derived from the operation of the system
for the ensuing fiscal year, and to the extent that said gross
revenues, together with tine e5>ci se taxes and the Assessments, are i n-
sufficient to pay debt service requirements during such ensuing year on
all outstanding bonds payable from the revenues of the system, build up
and maintain the required reserves for all such outstanding bonds
and pay Current Expenses, the Issuer shall revise the fees and
rates charged for the use of the services and facilities of the
system sufficiently to provide the funds required.
(I) Levy of Excise Taxes. The Issuer covenants and
agrees that it will not repeal the ordinances now in effect levying
the excise taxes and twill not amend or modify said ordinances in
any manner so as to impair or adversely affect the pos~~er and obli-
gation of the Issuer to_levy and collect such excise taxes or im-
pair or adversely affect in any manner the pledge of such excise
taxes made herein or the rights of the holders of the bonds. The
Issuer shall be unconditionally and irrevocably obligated, so long
as any of the bonds or the interest thereon are outstanding and
unpaid, to levy and collect such excise taxes at such rates, not
exceeding the maximum rates permitted by law, as shall be necessary
to provide funds which, together with the gross revenues of the
~_'~~~_';;'l, SL. a i~ ~~- :iLi}=~-~.:1<~r~t t0 ~~c:`,~, ~ 5 ~.i. ~ 3d:~.~ s~Zci~._ 1)_'~~Gi~°_ Ul ;
_ ~
ttt.° principal of and interest on the bonds, the principal of and
interest on the prior lien obligations, the Current Expenses of
operating and maintaining the system and the other payments pro-
vided for_ herein. This provision shall not be construed to
prevent reasonable revisions of the rates of such excise taxes as
lop; as the proceeds of such excise taxes to be collected by the
Issuer in each year thereafter, together t,rith the gross revenues
of th~~ s~Tstc~m, <<~i11 be sufficient to nay the principal of ar_d
inte.rc1t on the bonds ~.nd the prior lien obligations ~-~s the same
5h:z11 be-come due and pay tl-~.e current c::~penses of operating and main-
taii.ing the system and to make the other payments h~v~rein .required
i_:: such year.
{3) Iss~.ia~1c~~ of- Ottl~~r Ob7.igations.
-22-
•
•
(1} The Issuer covenants and agrees that in the event
the cost of. construction.or completion of the project shall exceed
the dollar amount of bonds heroin authorized, it shall deposit
into the Construction Account the amount of such excess out of
funds available to it for such purpose, and the Issuer may provide
such excess, and only such excess, throagh the issuance of parity
bonds conforming to the requirements of paragraph (3) of this sub-
section; but except to complete the project, it will not issue any
other obligations payable from or secured by the revenues of the
system and the proceeds of the excise taxes or any other security
pledged to secure payment of the bonds herein authorized, unless
the conditions hereinafter set forth shall be met, or unless the
lien of such obligations is junior and subordinate in all respects
to the lien of these bonds. The Issuer covenants and agrees that
it will not issue any additional obligations payable from the
revenues of the system or the proceeds of the excise taxes on a
parity with the outstanding prior lien obligations.
(2) The Issuer shall have the right to add new water
or sewer facilities and related auxiliary facilities, by the
issuance of one or more additional series of bonds to be secured
by a parity lien on and ratably payable from the net revenue s
o~ the system and any other security pledged to these bonds,
provided in each instance that:
(a) Tha facility or facilities t.o be a~~i ' t :.rem t::e
`proceeds of the additional parity bonds is or are made a part of
the system and its or their revenues are pledged as additional
security fo.r the additional parity bonds and the .outstanding ,ponds.
(b) The Issuer is in compliance with all covenants and
undertakings in connection witYi all of its bonds then outstanding
acid payable from the revenues of the system or any part thereof
and has not been in default as to any payments required to be
made under this instrument for a period of at Icast the nett pre-
ceding 24 months, or if at such time the bonds shall not have been
outstanding for 24 months then for the period that the bonds shall
have been outstanding.
(c) The annual net revenues (plus the proceeds of the
-23-
~~
E'xC1S~_' ta:{CS, if Sl1Cl1 E_;~v1St? t.a:{r?S Silali bi? r.)l~d jed aS S~~CUrlty
for the outstanding bonds rZnd the additional parity t_~onds) for
tiie fiscal year next preceding the issuance of additional parity
~ bonds are cert=ified by an inciependerit certified pu'alic accountant
not regularly employed by the Issue r_, to have been equal to at
least one and twenty-hundredths (1,20) times the average annual
requirements for principal and interest on all the bonds then
outstanding and payable from such pledged revenues.
(d) Tha estimated average annual net revenues of the
facility or facilities to be constructed and acquired ~~:ith the
proceeds of such additional bonds (and any other funds pledged
and set aside for such purpose), wizen added to the estimated fu-
i ture average annual net revenues of the then existing system (plus
the proceeds of the excise taxes, if such excise tares shall be
pledged as security for the outstanding bonds and the additional
parity bonds) shall be at least one and twenty-hundredths (1.20)
times the average annual debt service requirements for principal and
interest on all outstanding bands payable from the revenues of the
system and on the additional bonds proposed to be issued,
For the purpose of this subsection $4,000 in principal amount
of bonds shall be deemed to mature on September 1, 1987 for the
reason that the balance of the principal amount of bonds
maturing on Septemb`e7r 1, 1987 {in the amount of $42.,000) shall
1?r ,i°i~l1C.E;~:t ~itli :ti %31:1 ~:S L'J `,JULil ~rlr'i~_ 3 _ c1i::i 1 ~F.'S?' =O;;I ~~.~
Assessments; and the $42,000 principal amount of bonds payable ~
from the Assessments shall not be deemed to be outstanding fo.r
the purposes of this subsection, except pargarph (2)(b) hereof.
Estimates of future revenues and operating expenses shall be fur-
nishecl by recognized independent consulting engi_noers and approved
by the City Council of the Issuer and by the P~iayor thereof, and
shall he forecast over a period of not exceocli_ng ten y`ars from
the elate of the additional bands proposed to be issued. Pro-
vided, however, the conditions provided by this paragraph and by
the nc.:t preceding paragraph (c) may be waived or modified by the
;~:ritten con,>^nt of tho holders of seventy-five r~er centtim. (75~ )
oL the bonds their ou±-standing,
-23A-
• •
(3) `! h~~ Is:uer lterebl~ covenants anc. a<~rees tli~~t in t;~^
event additional series of_ parity bonds are i ssu~d, it ;vi]_1 provide
that s~~id parity bonds shall mature ~lccorcling to a sc]zedule ~,r~ich
most closely approximates equal annual installments of combined
principal and interest payments for such parity bonds and all other
bonds payable from the revenues of the system; it will adjust the
required deposits into the maximum amount to be maintained in the
Sinking I'uncl, inclu.',.inr the Reserve Account therein, on the same
-24-
• •
t~ciS1S as 11:-'Y'CLnc-1~OV? tart sCrli:E:d, t0 L'C'~lE'Ct ~11C= .7.~C'.rc1C1t', %1T'inLl_ll. :1~:,'bt
S~_'r~T1C(? Oil th? ~1dd1t10Ilal bon:ls; an<' It ~^~il). ma'r:~' S11Cil aClClltlOn~il
b Oild.~'~ payable a~ t0 pr L_^. C.ip.`-..l O.^. 5~~;?~°iTl~`c~r 1 Of E~aCl'? ye 3r 1.n 1.7121Ch
principal falls due and the coupons attached thereto payable on
September 1 of each year. If in any sul:~sequently issued series ~f
bonds secured by a parity lien on the revenues of the system it
is provided that excess .revenues shall b~ used to redeem bonds in
a:lvance of scheduled maturity, or if the Issuer at its option under-
takes to redeem outstanding bonds in advance of scheduled maturity,
the Issuer covenants that calls of bonds ~.ti~ill be applied to each
series of bonds on an equal pro rata basis, proportionate to the
principal amount of bonds of each series outstanding at the time
of such call, to the extent that this may be accomplished in
accordance with the call provisions of the respective bond series,
but the Issuer shall have the right to call any or all outstand-
ing bonds which may be called at par prior to calling any bonds
that are callable at a premium.
(tC) Disposal of Facilities. The Issuer covenants and
agrees that, so Long as any of the bonds are outstanding, it will
maintain its corporate identity and existence and will not sell
or otherwise dispose of any of the system facilities or any part
thereof, and, except as provided for above, it will not create
or permit to be created any charge or lien on the revenues thereof
_ ~~ ii, _! n~~: ~... ... _.. •7 _ .li .i •J _~ _J ~.. ~.: gin.. i'7 _ - _.. is :.~-'_ .... ~ _,. ~ ~.. i.~. J ~.
withstanding the foregoing, the Issuer may at any time permanently
abandon t'rie use of, or sell at fair market value, any of its system
facilities, provided that:
(a) It is in compliance ~,~ith all covenants and und~r-
takings in connection with all of its bonds then outstanding an3
payable from the revenues of the system, and the debt service
.reserve for such bonds has been fully established;
(b) It will, in the event of sale, aP1~1y the proceeris
to either (].} redemption of outstanding-bonds in accordance w_itll
the provisions governing repayment of bonds in adv~-lnce of maturity,
or (2) replacement of the facility so clispossd of by another facili-
-25-
• •
tV t_i)^_. r~tJ(')l'.Zf'_'~; of ~~1~11CY1 Shall Y~%_' 1nCOr>QCated lt) ~O the Sy it_(:::?l as
ht'L:'_1'1bE_foC'E' ~")YOV ~.ClE?Q;
(c) It cortifics, prior. to any abandonment of uso,
t'rlat the f<cility to be abzndoned is no longer economically feasi-
ble of pro~:ucing net rovent:os; and
(d) It certifies -that the estimated net revenues of
tho remaining system facilities for the next succeeding fiscal
year, plus the estimated net revenues of the facility, if any, to
be added to the system, satisfy the earninc;s lost hereinbefore
provide~~ in this section governing issuance of additional
parity bonds.
(L) Insurance on System. [~lhile any of the bonds. shall
remain outstanding, the Issuer shall carry at least the following
insurance coverage:
(1) Fire and extended coverage insurance on the insur-
able portions of the system, in amounts sufficient to provide for
not less than full recovery cahenever a loss from perils insured
acJainst does not exceed eighty per centum (800) of the full insura-
ble value of the damaged facility.
In the event of any damage to or destruction of any
facility or facilities of the system, the Issuer shall deposit
the insurance proceeds in the Reserve Account and promptly arrange
for the apc~lication thereof to the repair or reconstruction of the
_ ~.
(2) Public liability insurance relating to the operation
of the system, with limits of not less than $100,000 for one person
and $300,000 for more than one person involved in one accident, to
protect the Issuer from claims for bodily injury and/or death and
not less than $10,000 for claims for damage to property of others
~,ihich may arise from the Issuer's operation of the system.
(3) If the Issuer owns or operates a vehicle in the
operation of the system, vehicular public liability insurance with
limits of not less than $100,000 for one person and ;300,000 f:or
more than one person involved in one accident to protect the
Iss~_ier from clair)s Eor bodily injury and death, and not less than
$10,000 against claims for damages to property of others which m,y
-2G-
arise from the Issuer's operation of vehicles.
(4) AlI such insu=ance shall be carried for the benefit
of the holders of the bonds. :.ll moneys received for losses
under any of such insurance, except public liability, are hereby
pledged by the Issuer as security for the bonds herein authorized,
until and unless such proceeds are used to remedy the loss or damage
for which such proceeds are received, either by repairing the pro-
perty damaged or replacing the property destroyed within ninety
(90) days from the receipt of such praceeds.
(M) riaintenance of System. The Issuer will complete the
construction of the project in an economical and efficient manner
with all practicable dispatch, and thereafter will maintain the
system in good condition and continuously operate the same in an
efficient manner and at a reasonable cost.
(N) No r^ree Services. The Issuer will not render or
%ause to be rendered any free services of any nature by its system,
nor twill any preferential rates be established for users of the
same clasw•; and if the Issuer shall avail itself of the facilities
or services provided by the system, or any part thereof, then the
same rates, fees or charges applicable to other customers receiv-
ing like service under similar circumstances shall be charged
to the Issuer. Such charges shall be paid as they accrue, and the
t
~ Issuer shall transfer from its general funds sufficient sums to pay
such charges. The revenues so received shall be deemed to be
revenues derived from the operation of the system, and shall be
deposited and accounted for in the same manner as other revenues
derived from such operation of the system.
(O) Failure of User to Pats for Services. Upon failure
of any user to pay for services rendered within sixty (60) days,
the Issuer shall shut off the connection of such user and shill not
furnish him or permit him to receive from the system further ser-
vice until all obligations owed by him to the Issuer on account
of services shall have been Paid in full. This covenant shall not,
however, prevent the Issuer from causing any system connection to
be shut off sooner.
-7.7-
,' ,
(F') T,nforce.ncnt of Col_1~ctians. llle l~~_1-.F,r :~~i_l.l di li--
~?elltly c niOrCe? anCi COllr'Ct tl"1O r~itE'.S, fees and Other Char~~er; ~Or
the-' Set""V1CE~`.'> c"lnd faCllit.l.c''.S Oi: tl"le SySter'i; arld Sltll`_1;:E_' all Steps,
actions ancJ. proceedintrs for the enforcement and ca]_lection of
such rates, charges and fees as shill become delinquent to the
full e~:tent Permitted or authorized by la~~~; and Twill maintain accu-
rate records with respect thereof. All such fens, rates, charges
and revcnu~~s herein pledged shall, as collected, be 'rlel~l in trust
to ba appl_iec? as Provided in this instrument and not otherwise.
The Issuer will collect and enforce the payment of
all Assessments .and of all of the installments thereof, in the
manner prescribed by this instrument and the laws of Florida
thereunto appertaining. If the o:oner of any lot or parcel of
land assessed shall be delinquent in the payment of any Assess-
ment, installment, interest due thereon or penalty thereon for
a period of sixty (60) days, then the Issuer shall declare the
entire unpaid balance of the Assessment to b~ in default and,
at the Issuer's expense, shall cause the lien of the Assessment
against such delinquent lot or parcel to be foreclosed in the
manner now or hereafter provided by law for the foreclosure of
mortgages on real estate, or as otherwise provided by law. If
said foreclosure be not promptly filed and prosecuted, then any
bonJ.holdor may file and prosecute said forecloSUr~~ ~icti~n i-: the
_ , , _.
iia^'~°,~._ Oi cnc iSSUer tOr tl"12 rJcirl'~L1t Oi X111 CT,kt~itrlTl'~ii:g ci.1C1 L1:11J~i1d
Bonds and interest thereon. All moneys realized thereby shall ,
be deposited in the Assessments Fund and distributed in the
manner hereinabove provided. The Issuer further covenants, at
its expense, to furnish to any bondholder requesting the same,
sixty (60) days after the due date of each annual installment,
a list of all delinquent installments, together with an annual
audit of the Assessments Fund by a certified public accountant
not .regularly employed by the Issuer or by an auditing official
of the State of Florida. If any property shall bc~ o.[fered at
public sale for the non-payment of t'rle Assessraer.t against it
and no person or persons shall purchase t'tle same for an amount
equal to the ful]_ amount due for th~~ Assessr;lent ( principal,
-, ,
• •
_ ~ ,
LI:tE'reS:, E?r~na.ltlE's dJld the COStS ~1rld <_X~P''.:•~."~ O~ GO.i]_O'CtlOn ,
the said pl:ope:r t,~~ _:~~al' ::e r. be p1lr~-~~~ased i.n thy, name: of t}Ie
Issuer. for_ an amount equal to the balance due on the Assess-
merJt, and the Issuer shall receive tit]_e to said property for
the benefit of the bondholders. The Issuer covenants to use its
best efforts to sell, lease or rent said property, for the
highest return obtainable, and to deposit all of the net proceeds
of any such sale, lease or rental into the Assessments Fund.
Not less than thirty (30) days prior to any proposed sale of
any lot or tract of land acquired by foreclosure by the Issuer,
it shall give written notice thereof to any bondholder who shall
have filed his name with the Issuer for such purpose. The
Issuer covenants and agrees that it shall take the measures
provided by law for the sale of property acquired by it as trustee
for the bondholders within thirty (30) days after the receipt of
the request therefor signed by at least fifteen percent (15Q)
of the holders of the Bonds then outstanding.
(~~) Suff.iciencv of Rates. The Issuer covenants and
agrees that it will fi:~, establish, revise from time to time whenever
necessary and maintain alwa1°s such fees, rates, rentals and other
charges for the use of the product, services and facilities of the
system which, together with tine e.~cise taxes, ~•~ill always :produce
-•
_. ~ ,... ~ .. ._ _'. 'l
same shall become due, the principal of and interest on the prior
lien obligations and the bonds, tine necessary e;;penses of opera-
ting and mair_taining the system and all reserve, Sinking Fund or
ot'rler payments required by this instrument, and that such rates,
fees, rentals or other charges ~~~ill rot be reduced so as to be
insl.Ifficient to provide funds for such purposes.
-2HA-
• •
h~~ 1:0 ;:?t71_:L:.tI1C:~~ ~'ll`h Lll~•; J ~~!n~~ R_6-_'.~~Ul_~3`.=1017:x. 1I1<~ rid>~•u~~~_
CUVenantS an:l aCjrE'E?S t0 pE:riUi""711 anCi COF1p1,,1 w:.tth, 111 Very I:'E'ap(aCt,
th<~ Loan ~~creem:nts `•ahich it might have ~~~i th the Government or
;~~i t~h any other cJove.rnmental agency anc: al.l applicable Frrderal and
State La~•~s and regulations .
(S) Remedies. Any holder of the bonds or any coupons
appertaining thereto issued under the provisions of this instrument,
or any trustees acting for the holdars of such bonds and coupons,
may either at law or in equity, by suit, action, mandamus or
other proceedings in any court of competent jurisdiction, protect
and enforce any and all rights, including the right to the appoint-
ment of a receiver, existing under the Laws of the State of Florida,
or granted and contained in this instrument, and may enforce and
compel the performance of all duties required by this instrument
or by any applicable State or Federal statutes to be performed by
the Issuer or by any officer thereof, including the levlr and collec-
-28B-
• •
lion of th.~ e;.c:ise ta:•:es grid the Assessments.
Nothing herein, ho~.•rever, _>ha11 be construed to grant to
any holder of s~.rch bonds or coupon~~ an1~ lien on any real property
of tide Issuer.
(T) F.ecorcls and 1ludits. The Issues r shall keep books
anc~ records of the revenues of the system and the proceeds of the
excise ta:;es and Assessments, which such boo}:s and records shall be kept
separate and apart from all other books, records and accountsof. the Issuer,
and any holder of a bond or bonds or -the coupons applicable there-
to issued pursuant to this instrument shall have the right to, at
all reasonable times, inspect all records, accounts and data of
the Issuer relating thereto.
So long as any of the bonds shall be outstandin,f, the
Issuer will furnish on or before ninety (90) days after the close
of each fiscal year, to any bondholc'.er who shall request the same
in Meriting, copies of an-annual audit report prepared by an indepen-
dent certified public accountant or an auditing official of the
State of Florida, covering for the preceding fiscal year, in rea-
sonable detail, the financial condition and record of operation
of the system and any other facilities the revenues of which are
l~ledgecl to the payment of the bonds and fire collection of the
excise ta~:es and Assessments .
(U) Connection with System. The Issuer will, to the
~'_,! i_ ~.'.::'--:~_"rF ;~_-._::Li _'a?CG iJ`~ ~c'..S~I, ._~~,-1 _rri ~:~_1 !'1.:1~i5~ ..~,.5_-'Ci-' _. :'f -'-tiS
d.ence_~ and structures within its corporate limits ?which can use the
facilities and services of the system to connect therewith and use
the facilities and services thereof, and to cease the use of all
other facilities. The Issuer will not grant a franchise for the
operation of any competing water or. sewer system until all bonds
issued hereunder, together with interest thereon, shall have been
paid in full.
(V) Fidelity T3ond. The Issuer will require each employee
,•rho .nay ilk-ve possession of the revenues of the system or the proceeds
of ctre excise taxes and Assessments to be covered by a fidelity band
written ley a responsibleindomnity company in an amount fully adequate
to protect th^ Issuer from loss.
-2 °--
i
(,, } r,ovornr.~ent p,7rov~~.1 0 ~ '_.;tension and Fin~~ncing.
lt:ythi.nr, herein to the contrary not~,~ithstarding, wil~_le the Goverri-
?nent is the holder of ~~.ny of the bonds, the Issuer will not borrow
any <<~or~ey from any source or enter into airy contract or agreement
or incur any other liab:Ll:i_tl~ in connection ,with malting extensions
or ir,prove:aents other -than, norrial maintenance of the system, or
make any extensions. or enlargements of the system, or permit others
to do so, without obtaining the prior ~~~ritten consent of the
Government.
{1{) Reimbursement of 1:c.vances and Interest Thereon.
t~hile the Government shall be the holder of any of the bonds, the
Government shall have the right to make advances for the payment
of insurance premiums and/or other advances which, in the opinion
of the Government, may be required to protect tiie Government's
security interest. In the event of any such advances, the Issuer
covenants and agrees to repay the same, together with interest
thereon at the same rate per annum as specified in the bonds, upon
demand made at any time after any such expenditure by the Govern-
ment. Any such amount due the Government shall take priority over
ary other payments from the P.eserve Account.
{y) Release of F::cise Taxes. At such time as the Issuer
may be able to obtain and file in the minutes of its City Council
a certificate of a certified public accountant not regularly
_i'y -. •~'1 I J J U ~ t a -i, 1 i i.. .... ~. L o ~:. ~. ~_ ~:;1 ~~ a t) . . l i ::;
fiscal year the net revenues derived from the operation of tr~e
syste:a~equaled at least one hundred forty percentum (140} of the
combined maximum principal and interest maturing in any one ensu-
ing fiscal year on all outstanding ob1_igations payable from the
re=.renues oL the system, then upon a declaration by resolution of
the City Council tiie lien hereby impressed upon trio excise
taxes as security for payment of the bonds and the interest thereon
shall be permanently released, and thereafter the payment of the
!~on~~ls anci the interest thereon si~.all be solely secured by a lien
~_~~,on and pledere of the revenues to be derived .from tl?~ operation of
the _>ystem and the I~ssessmer~fs; provided, however, the excise taxes shall
not be rele~ised unless all payments required by this instrument to have
-30-
• •
be^n made to the several account_~ and F~_inus horein sl~eci`ied shall
have been made in full, anci the Reserve Account shall 'nave on
deposi t therein at least the sum o{ 3?.rl^teen Thousand T~vo Hundred
Dollars ($19,20?).
(`L) E~Lpiration of E~:istinr Francllises. T'rIe IsG»er
covenants an::i agrees that if at the e:tipiration of the said franchise
agreements with Florida Po:aer & Light Company and Lake Apopka
Natural Gas District it shall enter into new franchise agreements
with said companies or any other electric power or natural gas
supplier, then the franchise taxes resulting from such agreements
shall be deposited into the Excise Taxes Fund in the carne manner
as it is herein provided for the payment therein of the existing
franchise taxes; and the Issuer does further covenant and
agree that if at any time the Issuer should undertake to o~an and
operate a municipal electric or natural gas system, it shall
deposit into the Excise Taxes Fund six percentum (6°) of th.^ gross
revenues derived by the Issuer from the operation of such munici-
pal electric or natural gas system.
ARTICLE IV
P•~ISCELLANEOUS PPOVISIONS
4.01 i•lodification or Amendment. No .Material modifica-
tion or amendment of this instru:^Ient or of any instrument amendatory
,~_:_::~ ~ ~ c; i_ s~~_~~.' .~"';J,`v31 ~~=Yeto, ~r,~~_~ _. :;1.~_4:~ .~:~ti,~~~'.1t `.,. ~ `. ;:~s?'lt
in ~ari~ting of the holders of two-thirds or more in principal amount
of the bands then outstanding; provided, however, that no modifi-
cation or amendment shall permit a change in the maturity of such
I)oIlds or a reduction in the rate of interest thereon, or in the
~~r~,ourt of the principal obligation, or affect the unconditional
promise of the Issuer to charge and collect such rates, fees and
charges fo.r the use of the product, services and facilities of the
s~>,'stem and to levy and collect the excise taxes and the Assessments and
apply -the same as herein provided, or reduce the number_ of such bonds the
~~ritten consent of the holders of ;which are re:~uired by this
Section fcr such modifications or amendments, without the consent
o~ the holders of all such bonds.
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,.:,• •
4.02 Creation of Superior Liens. The Issuer covenants
that except as herein provided it will not issue any other bonds,
certificates or obligations of any kind or nature or create or
cause or L.ermit to be created any debt, lien, pledge, assignment
or encumbrance or charge payable from or enjoying a lien upon
the revenues of the system or the excise taxes or the Assessments
ranking prior and superior to the lien created by this instrument
for the benefit of the bonds herein authorized.
4.03 Severability of Invalid Provisions. If any one
or more of the covenants, agreements or provisions of this instru-
ment should he 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 separate
from the remaining covenants, agreements or provisions of this
instrument and of the bonds issued hereunder.
4.04 Validation Authorized
hereby authorized and directed to ins
in the Circuit Court for Lake County,
of said bonds and the proper officers
authorized to verify on behalf of the
proceedings.
4.0~ Sale of Bonds.
awarded to the Government.
~ 4.06 Conflicts Repealed. All resolutions or part of
resolutions in conflict herewith are hereby repealed.
4.07 Effective Date. This instrument shall take effect
' immediately upon its passage.
• DONE ANU RESOLVED BY T1iE CITY COUNCIL OF THE CITY OF CLERMONT, LAKE
COUNTY, FLORIDA, THIS 27th day of May, A.D. 1975.
CITY OF CLERMONT
ATTEST:
0 ores Carrol , City Cler
The Issuer's Attorney is
titute appropriate proceedings
Florida, for the validation
of the Issuer are hereby
Issuer any pleadings in such
The bonds are hereby sold and
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BY: Claude E. Smc~a ,Jr.,Mayor