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as those terms are hereinafter defined, are adequate within the meaning of the Act <br />for the security of the Bonds. <br />J. The Issuer is not obligated to pay the Bonds except from the <br />proceeds derived from the repayment of the Loan by the Borrower, or from the other <br />security pledged therefor or from draws under the Letter of Credit, as hereinafter <br />defined, and neither the faith and credit nor the taxing power of the Issuer or the <br />State of Florida or any political subdivision thereof, is pledged to the payment of the <br />principal of, premium, if any, or the interest on the Bonds. <br />K. The Issuer and the Borrower will concurrently with the issuance <br />of the Bonds execute the documentation required for the financing of the Project as <br />contemplated hereby. <br />L. A negotiated sale of the Bonds is required and necessary and is <br />in the best interest of the Issuer for the following reasons: the Bonds will be special <br />and limited obligations of the Issuer payable out of moneys derived by the Issuer <br />from the Borrower's operation of the Project or as otherwise provided herein and <br />will be secured by funds of the Borrower; the Borrower will be required to pay all <br />costs of the Issuer in connection with the financing; the cost of issuance of the <br />Bonds, which must be borne directly or indirectly by the Borrower would most likely <br />be greater if the Bonds are sold at public sale by competitive bids than if the bonds <br />are sold at negotiated sale, and there is no basis, considering prevailing market <br />conditions, for any expectation that the terms and conditions of a sale of the Bonds <br />at public sale by competitive bids would be any more favorable than at negotiated <br />sale; because prevailing market conditions are uncertain, it is desirable to sell the <br />Bonds at a predetermined price; and industrial development revenue bonds having <br />the characteristics of the Bonds are typically sold at negotiated sale under <br />prevailing market conditions. <br />M. First Union Capital Markets, Corp. (the "Underwriter"), has <br />provided, or prior to the issuance of the Bonds will provide, to the Issuer a <br />disclosure statement containing the information required by Section 218.385(6), <br />Florida Statutes. Said disclosure shall be acceptable to the Issuer and the Issuer <br />will not require any further disclosure from the Underwriter. <br />N. The Underwriter has submitted a proposal to place the Bonds <br />pursuant to the terms of the Bond Purchase Agreement hereinafter more <br />particularly described (the "Bond Purchase Agreement"). <br />O. The purposes of the Act will be more effectively served by <br />awarding, or causing to be awarded, contracts for the construction, improvement, <br />installation and equipping of the Project upon a negotiated basis rather than by <br />awarding, or causing to be awarded, such contracts based on competitive bids. <br />4 <br />