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R-86-525 · RESOLUTION NO. 525 RESOLUTION AWARDING $885,900 CITY OF CLERMONT, FLORIDA, 1984 WATER AND SEWER REVENUE BOND ANTICIPATION NOTES AND DESIGNATING THE PLACE OF PAYMENT FOR SAID BOND ANTICIPATION NOTES. e WHEREAS, the City of Clermont, Florida (the "Issuer"), has heretofore advertised for bids for the purchase of its reve- nue bond anticipation notes hereinafter described; and WHEREAS, the Issuer's City Clerk was present at the Issuer's City Hall on the date and at the time specified in said advertisement to receive, open and consider all bids submitted for said revenue bond anticipatio~ notes; and WHEREAS, the bid of Clermont Florida interest as hereinafter stated, received; Sun Bank, N.A. , in the amount and bearing is the highest and best bid NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CLERMONT, FLORIDA, as follows: SECTION 1. $885,900 principal amount of the Issuer's 1984 Water and Sewer Revenue Bond Anticipation Notes are hereby awarded to Sun Bank, N .A. " Clermont Florida , at the price, bearing interest at the rate and subject to the terms and conditions stated in the bid of said purchaser attached hereto as Exhibit A. SECTION 2. Sun. Bank, N.A. The said notes shall be payable at Clermont Florida SECTION 3. This resolution shall take effect immediately upon passage. DONE AND RESOLVED by the City Council of the City of Clermont, Lake County, Florida this 22nd day of April , 1986. CITY OF CLERMONT, FLORIDA (OFFICIAL SEAL) &{!~~ ATTEST: ~~ ß V')< .. . ~, e . BID PROPOSAL " .t CITY OF CLERMONT,FLORIDA OPTION -I. ,. The City of Clermont, Florida will 'be loaned $885,9DO on a drawdown or as needed basis for ~ period of 365 days that dan be rebired early with no penalty, at an interest rate of '. Interest . t: ~ will not accrue until monies are transferred to the accounts of the City of Clermont. OPTION '2. ~. The City of Clermont, Florida will be loaned $885,900 on ~ mutually agreeable date for a period_of' 365 days that can be retired early with no penalty, at an interest rate of We will execrite formal interim financing documents with the City. We have read and understarid the Loan Specifications and related documents. FIRM ADDRESS SIGNATURE ./ TYPED SIGNATURE TELEPHONE NUMBER DATE .,..Ii ~. ~ ___ VII r¡4t J ~~ .. J~ '------.---------.- -~.' .._-...~ - -..- ..- ..-..._----- --_. -.--.---.. -. .. ---.. - .----".- ---.---.,-- · < " e e Sun Bank, N.A. Clermont Office April 17, 1986 Mr. JOlseph E. Van Zile Finance Director City of Clermont P.o. Box 219 Clermont, Fl. 32711 Subject: Bid Proposal - $885,900 Loan Dear Mr. Van Zile: Sun Bank, National Association is pleased to submit the following bid for your consideration. 1) BORROWER: City of Clermont 2) AMOUNT OF LOAN: $885,900. 3) TERMS: Maturity twelve months from the da~e of issuance. This commitment is good until April 25, 1986 4) INTEREST RATE: a. Fixed rate of 6.25%, or b. A floating rate equal to 65.0% of the rate of interest announced from time to time by Sun Banks, Inc. as its prime rate; provided, however, that in the event of any change in the Maximum Corporate Tax Rate while the Loan is outstanding the interest rate shall be adjusted to the extent necessary to maintain the bank's after tax yeild at the level before such change in the Maximum Corporate Tax Rate. 5) COLLATERAL: Unsecured. The above bid is conditioned upon the income from the Loan being free of taxation for Sun Bank, National Association. In the event any change in law or the interpretation thereof occurs after the issuance of the Loan and such change results in (a) a disallowance, reduction, or loss of right to claim any deduction for credit for federal or state or local income tax purposes (a "Loss") ,and/or (b) the imposition of any preference, minimum or other special tax under the federal, state or local tax laws (a "Tax"), and such Loss or Tax as directly or indirectly related to the ownership of the Loan or the receipt of income therefrom, the City shall indemnify the Bank or Holder for such Loss or Tax by increasing the interest payments to be made or previously made with respect to the Loan so as to maintain the Bank's or Holder's after-tax economic yield and overall net after-tax cash flows resulting 581 East Highway 50, Clermont. Florida 32711 / (904) 326-4592 " ~ e e Mr. Joseph E. Van Zile 4/17/86 Page 2 from the holding of the Loan at the same levels which would have been realized if such change in .law or interpretation thereof did not occur. We appreciate the opportunity to make this bid and we look forward to a favorable reply from the City. It is our pleasure to provide banking services to the City of Clermont and we envision a continued beneficial relationship in the future. Sincerely, ~c~ Donald . Wickham Vice President DCW/ew enclosure ; ;:} ::'~'~'::~ ~=, ;'" ·.éoa VALUE.- Ri;{:'~1'Vil:i,', >; t;'ß.'èCtCi t:~',.oL ·CJ~.41~iI:H: t:,.,. a",µ'!~Hli·cj.p~~i t;y created and existing under and by virtue of the laws of the State of Florida (the "Issuer"), hereby promises to pay to the order of Sun Bank, National Association, Clermont, Florida, solely from the special funds hereinafter described, on May 22, 1987, the principal sum of EIGHT HUNDRED EIGHTY FIVE THOUSAND NINE HUNDRED DOLLARS ($885,900), and to pay interest (computed on the basis of ,... '--'a 360-day year of twelve 30-day months) on such pr incipal sum from the date hereof to such date of maturity hereof at a rate per annum (the "Note Rate") equal to sixty-five percent (65%) of the Base Rate ("Base Rate" means at any time that rate of inter- est described by Sun Banks, Inc., a Florida corporation; or its . corporate successor,. as its "prime rate" of· interest (which in- 'terest rate is only a benchmark, is purely discretionary and is not necessarily the best or lowest rate charged borrowing cus- -~ tomers of any banking subsidiary of Sun Banks, Inc.), whether or not such prime rate shall be otherwise published, as such rate . shall vary from time to time, or if said prime rate is discon- .-;!: .~ tinued or is not (in the opinion of' Sun Banks,Inc.) susceptible ~ïïi!:~ì:é>f.::ascertainment, -such·:·other'::rate as shall be· substantially'· ~::::_~!_:: :equivalent:. thereto 'as ·shall.be· designa ted d by Sun Banks,' Inc. ), to ï:.!!.:i~be·.¡adjusted-with·each'change·in··the Base Rate; ·provided,· however, ~;,~~.that the Note Rate (calculated as provided by law) shall never ~Jf~~~ exce~d ~he··~ax~.r~,\Um· ·r~te.·, of inter~.s,t· ~l'lowed ~:.om...t~rn~ t~. ,time by ~.~~?::_'":':sectlon 215.84, Florl.da Statutes,as...~J}ended.~·:d·'~' ..; .; -. - . In the event that the maximum federal' corporate' income tax rate shall , during any per iod with respect. to whi,ch interes t.. ... ....~ ~. .; ::::::····shall be accruing' on this note be other. than forty-six percent ....,...-\.'..- (46%), the Note Rate during such period shall be a "Revised Note Rate" equal to such percentage of the Base. Rate (subject to. .. periodic adjustment with changes in the Base Rate as hereinabove. ~; .' ::; :" 'provided) as shall equal .the product obtained by multiplying. the' .., .. ~.;;"_.' Note Rate by a fraction, the numerator of which shall be one . !'::;.:' . hundred percent (100%) minus the then applicable maximum federal·. -..- corporate income tax rate percentage,-and the denominator of ~:~¡:.}~.' which shall· be fifty-four percent (54%); such product to be 1::-::1 i rounded to the nearest one-tenth of one percent and any minimum \_ _ i or maximum limi ts on such rate shall be adjusted cor respondingly i ::ï¡:.~~~·i provided, however, that the Revised;· ,Note Rate (calculated as !--¡: . provided by law) shall never exceed th~ maximum rate of i~terest i:··..'·allowed from time to time by Section 215.84, Florida Statutes,. as amended. .. '. . e . a ..-.I. REGJ:STEltED $035 r ~~OO REGISTERED $üeS,900 . .. .. , tJt-~t1~J-:D $'XATFS \i\? JJ·Œl1ICA ·$;i'il~.'f~· Of:' ..J:'LORID)\ CCUN'I"~' DE': I;l\~B C. pry OJ? c.:r,r:;,:tHON'I' .. 19n:1 WL\Tj:;J:t AND SEW1W. REVt.:~~P}.LD(}1-JD ANTltrí~AT¡C'N NO~N~ . : := I ! ~ I ¡ :: ... , .. ::- ~ \ " :'. ::~.~;~.} ~~:' :..~ ': . . . '. In the event any change in law or. the interp~etdtion' :~~ ~::::.; thereof occurs after the issuance of this . note which resul ts in .. ,.' ..,;. (a) a disallowance, reduction or loss of right to claim any ._ .deduction or credit for federal or state or local income tax . purposes (a "Loss"), and/or (b) the imposition of any preference, minimum or other sDecial tax under the fed~ral, ~tat~ or local tax laws (a "Tax" ), and such Loss or Tax is di rect ly or indirectly related to the ownership of this note or the receipt of income therefrom, the Issuer agrees to indemnify the holder hereof for such Loss or Tax by increasing the interest payments to be made or previously made with respect to this note by such an amount which after ¿eduction of all taxes required to be paid as a result of the holder's receipt of such sums will maintain the holder's after-tax economic yield and overall net after-tax -1- '.,' . 0':'" ..... :::. ...", . ........: / J . .. .. ',." -. ..... .. . ' j .. ':, : . . .. . . ·f J: ! :/ ;¡ ..., '.:* ." ·1. '. .:. '...' ....~: . :~. ~-:.: ; . . f: . :" ¡¡'" 'cash flows" resulting' from the holding of this noteat·:the·same·I!...:....'::-.· I:: ':I,·::..,:-~· levels which woA:i have been realizèd ifsa1change.in;·law.' or:·.i(.:~;:. :"':';:: :-;. ... interpretation ~~e;;reof did not o",=cur; prov.d, however I that the '.~ .. .... rate per annum of inte~est payable hereunder (calculated as ,-.., ". provided by. law) shall never exceed the maximum . rate of interest =1;::'::;:.:::: allowed from time to time by Section 215.84, Florida Statutes, as amended. any the . for Both principal and interest on this note are payable in coin or currency of the United States of America which, on respective dates of payment thereof, shall be legal tend~r:li::~:¡i~:' the pavment of public and private debts. .' " . .... .:I,':',¡":_:II.;:;:li . . ·I-··~,.·.~:·¡::-.:::~J!:.~,· This note and the interest due hereon are payable solely from and secured by a prior lien upon and a pledge of the proceeds to be derived from the sale of the Bonds hereinafter described or the sale of bond anticipatión notes issued to extend and, renew the . indebtedness evidenced by this note and, if . . . necessary, from and secured by a lien upon, and a pledge of the ~~'. :.. following Pledged Funds : the net revenues to be der i ved from the·'·..·....·.. ~ operation of the Issuerts combined municipal water and sewer . ~ system (the "Facilities") and certain municipal Excise Taxes ~ ~ (def ined in the Resolution hereinafter descr ibed), all in the "'::. l~~ 8 . manner provided in said Resolution. It is expressly agreed by' - ' ,,.. "\ the holder of this note that the full faith and credit of the· I.. .;;_.. ;. . ~ Issuer are not pledged t'o the' payment of the pr incipal of and . ~ .~._: :;:~ ~~.' ~.... interest on this note and that such holder shall never have the . - .. right to require or compel the exercise of the ad valorem taxing ...~;J~: ~ .¿~.. power of the Issuer to the payment of such principal and interest, ;:::,;,.:: .- ~. or. t~e:' cost ?f·· maintaining, r7pai:ing . and . operating the.";;~;~'-i~.: ~.:; ~ ::" Facl.ll. tJ.es. ThlS note and the obllgatl.On eVJ.denced hereby shall." :'.; ,'; :':'ï . ", 'I not. constitute a .lien upon the Faciliti'es or any part· thereof ·or;··~<~::~~=:: :' ~:':.:;:'!:::.:::"I upon:": any.- other' ··property. of the Issuer 'or sitl.late!d within . its!"'.'::::"':'. ,..... corporate territorial limits,. but shall constitute a lien only on:,.·~·: !.:::.~~: ".':.'::!I.'.:', the proceeds to be derived from the sale of the Bonds or the sale:"I!.:·:ï~~¡~"; .. of bond anticipation notes issued to extend and renew the .., .._. . :", ,-..: ::-: :.:.' indebtedness..:, evidenced by;";: .this:..:. note; _. and,.-.if~:... necessary,,; the :.;·11··..: !.:¡ i~~ Pledged Funds.' . ...., ._, .. . ... . .:::':' ¡ ~ :: :: :. . . . ,. ", ", -I .. -j' . This notei:;;~· . issued ......pursuant to the .Consti tu tion". and '., !:-:::"'i i=~ .. ....laws of· th·e· State of Florida,' particularly' Part ·II;:.Chapter 166,;'.\ :::'::;~:=:':- . Flor ida Statutes, ..·as amended, and a .resolution duly.~· adopted·· by"".::: i:..:'::¡¡. the' Issuer on August 14,· 1984 (the "Resolution"), in anticipation::=¡~~~ . of the receipt by. the- Issuer of the proceeds .from the sale. of. not <;: I:: ~:i ¡::'. ..., :' :.: exceeding $885,900' pr incipal. amount of Water' and Sewer Revenue.} ?:~ ~:; -::~:, ;.. ", Bonds,. Series 1984, of .the·Issuer·.·(the:o..IIBonds"),·andis'subject"':':-ïï:.~~":-11 . .., to. all of the terms and conditions .of.the Resolution. ::. : ',,:':'.:':\j':':: :w. ~ :: :: í ; .:: ~:~ : ..... .. .. -. . . ... . ~ . . . .... The' lien in favor of the holder of this note on the revenues of the Facili ties and the. Excise Taxes is·. junior ~ . ..:. : .:. . subordinate and inferior in every respect to· the lien thereon 1n.·· .:: favor of the holders of the Issuer's outstanding Water and Sewer .< 1.:.:1 ;:.. Revenue 'Bonds dated November 1, 1970, Water and Sewer Revenue:!~10~~ Refunding Bonds, Series 1972, dated November 1, 1972, Water and:'::~';;J~¡¡: Sewer Rev-enue Bonds, Ser ies 1975, dated January 25, 1977, Water .::·II~: :':'11'=-:- and Sewer Revenue Bonds, Ser ies 1980, dated September 21, 1982,,:' ::; ~::::::!. and Water and Sewer Revenue Bonds, Series 1982, dated December 2, '. 1983 . ' . ,. ._.¡: c.. . This note may be prepaid, as a whole or in part, at any. time prior to maturity, at par plus accrued interest and w~thout premium or penalty, at the option of ,the Issuer. This note was validated by judgment of the Circuit Court of the Fifth Judicial Circuit, in and for Lake County, Florida, rendered on October 16, 1984. It is herêby certified and recited that all acts, conditiuns ~nd things r~quired to. exist, to happen and to be . performed precedent to and in the issuance of this note, exist, ,. " .... 'I:' .' -2- \ .. ~--" . ... ...:, c' . .../. . .. . . .. .... . . ";''';':''''''' .. {..; '-:'''--, . ". . '. \:'.\ \. 0\ ~~~~~G{if~~~?F;jif~~~~£~:0~f.~~i%~~~~tf~ti~~$~~~~~~~;~~~1~!?~~~t~;:'grl~t~~\3~Jr~ " s14~ e 10 6U1PT04 a4~ wOl1 6u1~T~sa;-~~~Tj'4~;~ e / aUles atn ~ e a~ou -, . .. ; , have happened and have been performed, in regular and time as required by the laws and Constitution of Florida applicable hereto, and that the issuance does not violate any constitutional, statutory limitations or provisions. This note is and has all the qualities and incidents of a negotiable instrument under the law merchant and the laws of the State of Florida. and due form the State of of this note or charter . . " . .' ~ ; ~: .~ . IN WITNESS WHEREOF, the City of Clermont, Florida,has issued this note and has caused the same to be signed by its Mayor and attested and countersigned by its City Clerk, and its corporate seal to be affixed, impressed, imprinted or engraved hereon, and for identification purposes only has caused such officers to sign in the margin of page 2 hereof, all as of May 23, 1986. , . " ~ ;.: CITY OF CLERMONT, FLORIDA : r : ::. ::.: '..' .... ... ._. . 1_' .., ._, ,- ..... . .. ~J ~~)~.::. :";':" I';' ' ," 0" · .......... . By ~ r.? ¡C?.--L Mayor >' . :í .~ . , .'J ,: ;:'{ ::... (SEAL j · ,\ ~ ........ . '. .. · ','. .P,. ; ..... -- .. . :.: .,,;~ 'ATTES'TED AND COUNTERSIGNED: .. " " f J '-'J" .., ,. ~ ",' I "1... t" , : .: ~ ' :./.): ~ ... . '.' . ~~ g\ ~V?#,E//; V : :~:i.~' ~~ ~~ t1. e r k . . /l/' ::.(.L: ï::V.: :: _ ". .' '.. , = U ~ ~..:.: ::. : : :. .. '. :..-,..... :~.:=~!~-.:::PŠ9·CLWNT1":~! ~'::;: ¡.. :-..- _.¡I-·_.¡~....,.. .. 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