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Home My WebLink About2001-113 RESOLUTION NO. 2001-113 A RESOLUTION APPOINTING FINANCIAL SECURITY ASSURANCE AS MUNICIPAL BOND INSURER FOR THE SERIES 2001 BONDS; PROVIDING CERTAIN OTHER MATTERS IN CONNECTION WITH THE MUNICIPAL BOND INSURANCE POLICY; AND PROVIDING AN EFFECTIVE DATE. WHEREAS,on May 16, 1995,the Board of County Commissioners of Indian River County, Florida(the"County" or the"Issuer")adopted Resolution No. 95-63, as supplemented(the"Original Resolution")to provide for the issuance of not to exceed$26,000,000 in aggregate principal amount of Indian River County General Obligation Bonds (the "Bonds") payable from the County's ad valorem taxes without limit on all taxable property in the County as provided in the Original Resolution; provided,however, that the Bonds shall be structured in such a manner that at the time of issuance of any series thereof, the millage rate required to make the maximum annual payment of the principal of and interest on the Bonds shall not exceed %2 mil of the then assessed value of all lands situated in the County subject to ad valorem taxation; and WHEREAS, on October 23, 2001, the County Commission of Indian River County, Florida adopted Resolution No. 2001-107 (the "Resolution"), supplementing the Original Resolution to provide for the issuance and sale of the County's not to exceed $11,000,000 General Obligation Bonds, Series 2001 (the "Series 2001 Bonds"); and WHEREAS, the Resolution provided for the County Administrator or his designee to solicit offers from municipal bond insurance firms to provide municipal bond insurance (the "Municipal Bond Insurance Policy") for the Series 2001 Bonds; and WHEREAS,the Issuer now desires to approve the commitment for municipal bond insurance provided by Financial Security Assurance Inc. as the municipal bond insurance firm (the "Bond Insurer") to provide the Municipal Bond Insurance Policy for the Series 2001 Bonds if such municipal bond insurance is elected by the purchaser of the Series 2001 Bonds, and if so selected, to supplement the Resolution to provide for the requirements of the Commitment. NOW,THEREFORE,BE IT RESOLVED BY THE COUNTY COMMISSION OF INDIAN RIVER COUNTY, FLORIDA: SECTION 1. The County approves the purchase of the Municipal Bond Insurance Policy for the Series 2001 Bonds from Financial Security Assurance, as Bond Insurer. SECTION 2. Pursuant to the Resolution, Financial Security Assurance Inc. ("FSA") has been selected to provide its Municipal Bond Insurance Policy(the "Bond Insurance Policy") as the Bond Insurance Policy (as defined in the Bond Ordinance) as additional security for payment of principal and interest on the Series 2001 Bonds. Selection of FSA as the Bond Insurer(as defined in the Resolution) is hereby ratified and confirmed, and if the successful bidder for the purchase of RESOLUTION NO. 2001-113 the Series 2001 Bonds elects to have the Series 2001 Bonds insured by the Bond Insurance Policy, then the provisions of this resolution shall apply and payment for such Bond Insurance Policy shall be made by the County from proceeds of the Series 2001 Bonds. The County hereby accepts the terms, conditions and agreements relating to the Bond Insurance Policy in accordance with the Municipal Bond Insurance Commitment (the "Commitment") as attached hereto as Exhibit A and incorporated herein. If the successful bidder elects to have the Series 2001 Bonds insured by the Bond Insurance Policy, a statement of insurance is hereby authorized to be printed on or attached to the Series 2001 Bonds for the benefit and information of the holders of the Series 2001 Bonds. SECTION 3. This resolution shall become effective immediately upon its adoption. Passed and adopted by the County Commission of the Indian River County, Florida, this 6th day of November, 2001. (SEAL) By. Chairman AT'TE : .. Caroline D. Ginn df Clerk w Approvedr-g�,,t fj�•and legal sufficiency: ' a Special County Attorney 2 EXHIBIT A MUNICIPAL BOND INSURANCE COMMITMENT ii 1 F SA Financial Security Assurance Inc- October 29, 200 3J !QCT 2 VIA FEDERAL EXPRESSis tm fc� 001 s Mr. Joseph A.J. Baird Indian River County 1840 25th Street Vero Beach, Florida 32960 Re: $11,000,000 in aggregate principal amount of Indian River County, Florida General Obligation Bonds, Series 2001 Dear Mr. Baird: Enclosed please find two signed originals of our commitment letter in respect of the above-referenced issue. Please have both documents signed, keep one original for your records, and return the other original to me at the address indicated below. The signed original, executed by an appropriate officer, must be returned to me prior to any reference to Financial Security Assurance Inc. ("Financial Security") as insurer of the issue being made in marketing efforts in respect of the issue. The bond proof and official statement drafts should be delivered to me with reasonable opportunity to submit any comments prior to final printing of these items. I would also appreciate being notified of a confirmed closing date as soon as it becomes available. Please note my phone number, fax numbers and e- mail address are as follows: (212)339-3537,(212)339-0872 or(212)339-3588 and LSantana@FSA.com. For your information, Financial Security's logo sheet, statement of insurance, disclosure language and specimen policy, premium payment, form of opinion of counsel and form of disclosure, no default and tax certificate is available on our website and may be accessed by working group members on the Legal Page of Financial Security's website: www.FSA.com/munidocs. Also, for your information, we will deliver to Bond Counsel, at the preliminary closing the executed policy, an opinion of counsel as to the enforceability of the policy, a disclosure, no default and tax certificate of Financial Security and other certificates needed in the transaction. Any inquiries regarding rating agency fees should be directed to the respective rating agencies. I look forward to working with you. S cerely yours, Lillie Santana Assistant Vice President Documentation and Closing Supervisor Enclosures cc: Robert C. Reid, Esquire; Bryant, Miller and Olive, P.A. Mr. Art Diamond; Fishkind &Associates, Inc. 350 Park Avenue•New York,New York 10022-Tel:212.826.0100•Fax:212.688.3101 New York-Dallas-San Francisco-London-Madrid-Paris•Singapore-Sydney �-' FSA MUNICIPAL BOND INSURANCE COMMITMENT FINANCIAL SECURITY ASSURANCE INC. ("Financial Security" or "FSA") hereby commits to issue its Municipal Bond Insurance Policy(the"Policy") relating to whole maturities of the debt obligations described in Exhibit A attached hereto (the "Bonds"), subject to the terms and conditions set forth in this Commitment, of which Commitment Exhibit A is an integrated part, or added hereto(the "Commitment"). To keep this Commitment in effect after the Expiration Date set forth in Exhibit A attached hereto, a request for renewal must be submitted to Financial Security prior to such Expiration Date. Financial Security reserves the right to refuse wholly or in part to grant a renewal. THE MUNICIPAL BOND INSURANCE POLICY SHALL BE ISSUED IF THE FOLLOWING CONDITIONS ARE SATISFIED: 1. The documents to be executed and delivered in connection with the issuance and sale of the Bonds shall not contain any untrue or misleading statement of a material fact and shall not fail to state a material fact necessary in order to make the information contained therein not misleading. 2. No event shall occur which would permit any underwriter or purchaser of the Bonds, otherwise required, not to be required to underwrite or purchase the Bonds on the date scheduled for the issuance and delivery thereof("Closing Date"). 3. There shall be no material change in or affecting the Bonds (including, without limitation, the security for the Bonds) or the financing documents or the Official Statement (or any similar disclosure documents) to be executed and delivered in connection with the issuance and sale of the Bonds from the descriptions or forms thereof approved by Financial Security. 4. The Bonds shall contain no reference to Financial Security, the Policy or the insurance evidenced thereby except as may be approved by Financial Security. BOND PROOFS SHALL HAVE BEEN APPROVED BY FINANCIAL SECURITY PRIOR TO PRINTING. The Bonds shall bear a Statement of Insurance in the form provided by Financial Security. 5. Financial Security shall be provided with: (a) Executed copies of all financing documents, any disclosure document (the "Official Statement") and the various legal opinions delivered in connection with the issuance and sale of the Bonds (which shall be dated the Closing Date and which, except for the opinions of counsel relating to the adequacy of disclosure, shall be addressed to Financial Security or accompanied by a letter of such counsel permitting Financial Security to rely on such opinion as if such opinion were addressed to Financial Security), including, without limitation, the approving opinion of bond counsel. Each of the foregoing shall be in form and substance acceptable to Financial Security. Copies of all drafts of such documents prepared subsequent to the date of the Commitment (blacklined to reflect all revisions from previously reviewed drafts) shall be furnished to Financial Security for review and approval. Final drafts of such documents shall be provided to Financial Security at least three (3) business days prior to the issuance of the Policy, unless Financial Security shall agree to some shorter period. (b) Evidence of wire transfer in federal funds of an amount equal to the insurance premium, unless alternative arrangements for the payment of such amount acceptable to Financial Security have been made prior to the delivery date of the Bonds. (c) Standard & Poor's Ratings Services, Moody's Investors Service Inc. and Fitch IBCA, Inc. will separately present bills for their respective fees relating to the Bonds. Payment of such bills should be made directly to such rating agency. Payment of the rating fee is not a condition to release of the Policy by Financial Security. 6. Promptly after the closing of the Bonds, Financial Security shall receive three completed sets of executed documents (one original and either(i)two photocopies(each unbound)or(ii)three compact discs). 7. The Official Statement shall contain the language provided by Financial Security and only such other references to Financial Security or otherwise as Financial Security shall supply or approve. FINANCIAL SECURITY SHALL BE PROVIDED WITH SIX PRINTED COPIES OF THE OFFICIAL STATEMENT. EXHIBIT A TERM SHEET FOR MUNICIPAL BOND INSURANCE COMMITMENT Issuer: Indian River County, Florida Principal Amount of Bonds Insured: Not to Exceed$11,000,000 Name of Bonds Insured: General Obligation Bonds, Series 2001 Date of Commitment: October 29,2001 Expiration Date: Friday, December 28, 2001' Premium: $26,007.19 Bond Counsel Opinion-- Language Requirements: The approving opinion of Bond Counsel shall include language to the effect that the Bonds are a full faith and credit obligation of the Issuer, the payment for which the Issuer is obligated to exercise its ad valorem taxing power, without limit as to rate or amount, upon all taxable property within the Issuer. Additional Conditions: None. FINANCIAL SECURITY ASSURANCE INC. l/ Authorized Officer 'To keep the Commitment in effect to the Expiration Date set forth above, Financial Security must receive a duplicate of this Exhibit A executed by an appropriate officer by the earlier of the date on which the Official Statement containing disclosure language about Financial Security is circulated and ten days from the Date of Commitment. The undersigned agrees that if the Bonds are insured by a policy of municipal bond insurance, such insurance shall be provided by Financial Security in accordance with the terms of the Commitment. INDIAN RIVER COUNTY, FLORIDA l � f) Authorized OffiJer LALEGAUMUN&STATESTU48041 C.doc