HomeMy WebLinkAbout1980-063SUN 5 1980 nox 43 PAF. 919
RESOLUTION NO. 80-63
RESOLUTION PROVIDING FOR THE ACQUISITION
AND CONSTRUCTION OF CERTAIN WATER FACILI`T'IES
IN INDIAN RIVER COUNTY, FLORIDA; AUTHORIZING
THE ISSUANCE BY THE COUNTY OF NOT EXCEEDING
$5,825,900 WATER REVENUE BONDS, SERIES 1980
(SOUTH COUNTY WATER SYSTEM), TO FINANCE•' A
PART OF THE COST THEREOF; PLEDGING TETE GROSS
REVENUES OF SUCH FACILITIES TO SECURE PAYMENT
OF THE PRINCIPAL OF AND INTEREST ON THE BONDS;
AND PROVIDING FOR THE RIGHTS OF THE HOLDERS OF
THE BONDS.
BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF
INDIAN RIVER COUNTY, FLORIDA, as follows:
ARTICLE I
GENERAL
1.01 Definitions. When used in this Instrument, the
following terms shall have the following meanings, unless the
text clearly otherwise requires:
"Annual Budget" shall mean the Annual Budget adopted by
the Issuer pursuant to Section 3.04(A) of this Instrument.
"Bonds" shall mean the obligations of the Issuer
authorized to be issued pursuant to Section 2.01 of this
Instrument, and shall be deemed to include also any obligations
issued hereafter by the Issuer pursuant to the provisions of
Section 3.04 (H) of this Instrument.
"Chairman" shall mean the Chairman of the Board of
County Commissioners of the Issuer.
"Clerk" shall mean the Clerk of the Circuit Court of
Indian River County, Florida, ex officio Clerk of the Board of
County Commissioners of the Issuer.
"Construction Account" shall mean the account or
accounts created pursuant to Section 3.03 of this instrument for
the purpose of receiving bond proceeds and other funds to pay the
Cost of the Project.
"Cost," when used in connection with the Project, shall
mean all expenses necessary, appurtenant or incidental to the
acquisition and construction of the Project, including, without
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e
limitation, the cost of any land or interest therein or of any
fixtures, equipment or personal property necessary or convenient
therefor; the cost of labor and materials to complete such
construction; engineering and legal expenses; fiscal expenses;
expenses for estimates of costs and of revenues; expenses for
plans, specifications and surveys; interest during construction;
repayment of interim financing obligations of the Issuer issued
with respect to the Project; and administrative expenses related
solely to the acquisition and construction of the Project..
"Fiscal Year" shall mean the period commencing on
October 1 of each year and continuing to and including the suc-
ceeding September 30.
"Government" shall mean the United States of America,
acting through the Farmers Home Administration, U.S. Department
of Agriculture.
"Gross Revenues" shall mean all moneys received from
rates, fees, rentals or other charges or income received by the
Issuer or accruing to it in the management_ and operation of the
System, all calculated ip accordance with accepted accounting
methods employed in the operation of public water and sewer
systems similar to the System.
"Instrument" shall mean this resolution and all resolu-
tions amendatory hereof which may be hereafter duly adopted by
the Issuer.
"Issuer" shall mean Indian River County, Florida.
"Net Revenues" shall mean Gross Revenues less Operating
Expenses.
"Operating Expenses" shall mean the current expenses,
paid or accrued, for the operation, maintenance and repair of all
facilities of the System, as calculated in accordance with such
accepted accounting methods, and shall include, without limiting
the generality of the foregoing, insurance premiums, administra-
tive expenses of the Issuer related solely to the System, labor,
cost of materials and supplies used for such operation and
charges for the accumulation of appropriate reserves for current
expenses not annually recurrent but which are such as may rea-
sonably be expected to be incurred in accordance with such
accepted accounting methods, but shall exclude payments into the
Sinking Fund or the Reserve Account therein and any allowance for
depreciation or for renewals or replacements of capital assets of
the System.
"Operation and Maintenance Fund" shall mean the account_
created pursuant to the provisions of Section 3.04(D) of this
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JAN 2 �
�_ 1980 Boa 43 ix -[920
JUN w 5 1880 BOOK 43 PAr, E 9
Instrument for the purpose of receiving funds transferred from
the Revenue Fund for the purpose of paying Operating Fxpenses.
"Pledged Funds" shall mean the Cross Revenues.
"Project" shall mean the water facilities in the
southern part of the Issuer, more commonly known as the South
County Water System, and any improvements to such facilities, to
be acquired and constructed pursuant to the authorization con-
tained in this Instrument in accordance with certain plans and
specifications now on file with the Clerk.
"Revenue Fund" shall mean the account created pursuant
to the provisions of Section 3.04(9) of this Instrument, into
which all Gross Revenues shall be deposited by the Issuer.
"Sinking Fund" shall mean the account created pursuant
to Section 3.04(C) of this Instrument, into which moneys shall be
transferred from the Revenue Fund for the payment of the prin-
cipal of and interest on the Bonds.
"System" shall mean the complete water facilities
acquired and constructed as the Project, together with any and
all improvements, extensions and additions thereto hereafter
constructed or acquired:
1.02 Authority for this Instrument. This Instrument is
adopted pursuant_ to the provisions of Ch. 159, Fla. Star_. (1979),
and other applicable provisions of law.
1.03 Findings. It is hereby found and determined that:
(A) The Issuer does not presently own or operate a
water system for the benefit of its inhabitants in southern
Indian River County, Florida, and the Project is necessary for
the continued preservation of the health, welfare, convenience
and safety of the Issuer and its inhabitants in such area.
(B) The Issuer has been advised by its consulting engi-
neers and it is hereby found and determined that the estimated
Cost_ of the Project i.s $6,662,800 which shall be paid with the
proceeds of the sale of the Bonds and a federal grant in the
amount of $796,900.
(C) The revenues to be derived annually from the rates,
rentals, fees and other charges made and collected for the ser-
vices and facilities of the System are estimated to be $688,608,
and will be sufficient_ to pay, as the same shall become due and
payable, the principal of and interest on the Bonds and the
Operating Expenses, the aggregate annual amount of which is esti-
-3-
J 1980 BOOK 43 PAGE 923
Bond numbered 1 which shall be in the dr�nominati.on of $53,900)
and manuring on September 1 in the year.s and amounts as follows:
Years
Amounts
Years
Amounts
1983
$ 53,900
2002
$137,000
1984
57,000
2003
144,000
1985
60,000
2004
151,000
1986
63,000
2005
158,000
1987
66,000
2006
166,000
1988
69,000
2007
174,000
1989
72,000
2008
183,000
1990
76,000
20U9
192,000
1991
80,000
2010
202,000
1992
84,000
2011
212,000
1993
88,000
2012
223,000
1994
93,000
2013
234,000
1995
97,000
2014
245,000
1996
102,000
2015
258,000
1997
107,000
2016
271,000
1998
112,000
2017
284,000
1999
118,000
2018
2981000
2000
124,000
2019
313,000
2001
130,000
2020
329,000
Provided, however, if the Bonds shall be issued on
September 1, 1981, or thereafter, each of such installment or
maturity dates shall be deferred by one year for each year or
fraction of a year that the issuance of the Bonds shall be
deferred beyond August 31, 1981, and all other dares herein shall
be deferred correspondingly.
2.03 Places of Payment_. The Bonds shall be payable as
to both principal. and interest at such place or places as the
Issuer shall hereafter by resolution designate, in lawful money
of the United States of America; and shall bear interest from the
date of issue, and in the case of coupon Bonds, in accordance with
and upon surrender of the appurtenant: interest coupons as they
severally mature, unless registered; provided, however, that Bonds
held by the Government shall be payable at "Finance Office, U.S.
Department of Agriculture, Farmers Home Administration, 1520 Pfarket
Street:, St. Louis, Missouri 63103," or at such other places as the
Government shall from time to time in writing designate to the
Issuer.
2.04 Provisions forRedemption. In this section the
word "Bonds" shall be deemed to include the respective
installments of principal of the fully -registered single Bond
corresponding to the serially maturing coupon Bonds.
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Bonds maturing on or before September 1, 1990, are not
subject to redemption prior to their respective stated dares of
maturity. Bonds which shall mature September 1, 1991, and
thereafter shall, at the opti.on of the Issuer, be redeemable in
whole or in part, in inverse numerical and maturity order, on
September 1, 1990, or on any interest payment_ date thereafter at
par and accrued interest, plus the following premiums, re
as percentages of the par value of ssed
the Bonds so redeemed, expre
redeemed in the following years:if
5%, if redeemed on September 1, 1990, or thereafter,
to and including September 1, 1992;
if redeemed on September 1, 1993, or thereafter,
to and including September 1, 1997;
3 if redeemed on Sept_ernber
to and 1, 1998, or thereafter,
including September 1, 2001;
2a, if redeemed on September 1, 2002, or thereafter,
to and including September 1, 2005;
1D, if redeemed on September 1, 2006, or thereafter,
to and including September 1, 2009;
Without premium, if redeemed September 1, 2010, or
thereafter, but prior to maturity;
provided, however, that at least thirty (30) days prior to the
redemption date, written notice of such redemption shall be given
to the paying agents for the Bonds and to each of the registered
owners at their respective addresses as they appear upon the
registration books of the Clerk and shall be published at least
once in a financial newspaper published i.n the City of New York,
New York. Bonds held by bile Government may be redeemed by the
Issuer on any interest payment date prior to maturity at the
price of par and accrued interest_, without premium.
2.05 Execution of Bonds. Tile Bonds shall be executed
f the name ma r_an Issuer with the manual or facsimile signature
Of the Chairman and the corporate seal of the Issuer shall be
imprinted thereon, attested and countersigned with the manual or
facsimile si.gnakure of the Clerk, provided that the signature of
one of such officers shall be manually executed thereon. In case
any one or more of the officers who shall have signed or sealed
any of the Bonds or whose facsimile signature shall appear
thereon shall cease to be such officer of
Bonds so signed and sealed have been actually the Issuer before the
such Bonds may nevertheless be sold and delivered as herein ro-
sold and delivered,
vided and may be issued as if t_he person who signed or sealed
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JUN 21 511980
Mor, 43 ;a - "?4
,JUN 2 5 1580 BOOK 43 PACE 925
such Bonds had not ceased to hold such office. Any Bond may be
signed and sealed on behalf of the Issuer by such person who at
the actual time of the execution of. such Bond shall hold the
proper office of the Issuer, although at the dare of such Bonds
such person may not have held such office or may not have been so
authorized. The coupons attached to the Bonds shall be authen"
ticar_ed with the facsimile signatures of any present, or future
Chairman and Clerk. The Issuer may adopt and use for such pur-
poses the facsimile signatures of any such persons who shall have
held such offices at any time after the dare of the adoption of
this Instrument, notwithstanding that either or both shall have
ceased to hold such office at the time the Bonds shall be
actually sold and delivered.
2.06 Negotiability, Registration and Exchange. The
Bonds shall be and shall have all t_he qualities and incidents of
negotiable instruments under laws of the State of Florida, and
each successive holder, in accepting any of the Bonds or the
coupons appertaining thereto, shall be conclusively deemed to
have agreed that the Bonds shall be and have all of the qualities
and incidents of negotiable instruments.
The coupon Bonds may be registered, at the option of
the holder, as to both principal and interest upon the books kept
for the registration and transfer of Bonds by the Clerk, as Bond
Registrar, and endorsed upon the Bonds by the Bond Registrar in
the space provided thereon. After such registration, no transfer
of the Bonds shall be valid unless made at the office of the Bond
Registrar by the registered owner or by his duly authorized agent_
or representative and similarly noted on the Bonds, but at the
expense of the holder, the Bonds may be discharged from registra-
tion by being in.like manner transferred to bearer, and thereupon
transferability by delivery shall be restored. At the option and
expense of the holder, the Bonds may thereafter again from time
to time be registered or transferred to bearer as before. The
Bond Registrar shall not be required to make any such registra-
tion or transfer of Bonds during fifteen (15) days next preceding
an interest_ payment date on the Bonds, or in the case of any pro-
posed redemption of Bonds, after such Bonds have been selected
for redemption. The person in whose name any Bond shall be
registered shall be deemed and regarded as the absolute owner
thereof for all purposes, and payment of or on account of the
principal of any Bond and the interest_ on any Bond shall be made
only to or upon 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.
The single fully -registered Bond may be exchanged by the
owner and holder thereof at any time, not more than ninety (90)
-7-
days after surrender of such Bond to the Bond Registrar, for an
equal aggregate principal amount of coupon Bonds maturing in thc.
years and amounts corresponding to the years and amounts of the
unpaid installments of principal of the single fully -registered
Bond, and in the form prescribed for coupon Bonds in Section 2.08
of this Instrument; and if all of the coupon Bonds outstanding
shall be owned and held by a single bondholder, such Bonds may,
in like manner, be exchanged at the expense of such bondholder,
at any time, not more than ninety (90) days after surrender of
such Bonds to the Bond Registrar, for a single fully -registered
Bond in principal amount equal to the aggregate principal amount
of such coupon Bonds surrendered, maturing in installments in the
years and amounts corresponding to the years and amounts of the
maturities of such coupon Bonds so surrendered and in the form
prescribed for the single fully -registered Bond in Section 2.08
of this Instrument.
2.07 Bonds_ Mutilated, 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
complying 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 Clerk. 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
shall constitute original, additional contractual obligations on
the part of the Issuer whether or not the lost, stolen or
destroyed Bonds be at any time found by anyone, and such dupli-
cate Bonds shall be entitled to equal and proportionate benefits
and rights as to lien on and source and security for payment from
the Pledged Funds to the same extent_ as all other Bonds issued
hereunder.
2.08 Form of Bonds. The text of the Bonds shall be in
substantially the following forms, with only such omissions,
insertions and variations as may be necessary and/or desirable
and approved by the Chairman or the Clerk prior to the issuance
thereof (whish necessity and/or desirability and approval shall
be presumed by such Officer's execution of the Bonds and the
Issuer's deliver_ of the Bonds to the Government or other
purchaser thereof):
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JUN 2 51980 BOOK 43;a':i ,3� fD
JUN u J 1980BOQd 3 f'A�E 27
N0.
(FORM OF COUPON BOND)
UNITED STATES OF AMP RICA
STATE OF FLORIDA
COUNTY OF .INDIAN RIVER
WATER REMWE' 130NDF SERIES 1980
(SOUTH COUNTY WATER SYSTEM)
$1,000
KNOW ALI, MEN BY THESE PRESENTS, that the County Of
Indian River, Florida, a public body created and existing under
and by virtue of the laws of the State of Florida (the "Issuer"),
for value received, hereby promises to pay to the bearer, or, if
this Bond be registered, to the registered holder as herein
Provided, on the first day of September, 19 from the special
funds hereinafter mentioned, the principal sum of
ONE THOUSAND DOLLARS
and to pay interest thereon, from the dare of the delivery of
this Bond to the purchaser thereof, solely from such special
funds, at the rate ofper centum ( %) per annum,
payable on September 1, 198'1, 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,
unless registered. 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
aggregate principal amount of $5,825,900 of like date, tenor and
effect, except as to number, denomination and date of maturity,
issued to finance a part of the cost_ of acquiring and construct-
ing certain water facilities in the southern part of the Issuer
(the "System"), under the authority of and in full compliance
with the Constitution and Statutes of the State of Florida, par-
ticularly Ch. 159, Fla. Star_. (1979), and a resolution duly
adopted by the Issuer on June 25, 1980 (the "Resolution"), and is
subject to all the terms and conditions of the Resolution.
This Bond and the interest thereon are payable solely
from and secured by a prior lien upon and a pledge of the gross
revenues to be derived from the operation of the System, in the
manner described in the Resolution. It is expressly agreed by
the holder of this Bond that the full faith and credit of the
Issuer are not pledged to the 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
-9-
C
the Issuer to the payment of such principal and interest_ or the
cost of maintaining, repairing and operatinq the System. This
0 ! Bond and the obligation evidenced hereby shall not constitute a
lien upon the System or any part thereof or upon any other pro-
perty of the Issuer or situated within its corporate limits, but
shall constitute a lien only on the gross revenues derived from
the operation of the System.
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
charges for the use of the product, services and facilities of
the System which will always produce cash revenues sufficient to
pay, and out of such funds pay, as the same shall become due, the
principal of and interest on the Bonds, the necessary expenses of
operating and maintaining the System and all reserve, Sinking
Fund or other payments required by the Resolution; and that such
rates, rentals, fees and other charges will not be reduced so as
to be insufficient to provide funds for such purposes.
As provided in the Resolution, this Bond and all. of the
Bonds then outstanding are exchangeable at the expense of the
holder or registered owner hereof, at any time, not less than
ninety days after surrender of this Bond and all of the Bonds
then outstanding to the Clerk hereinafter mentioned, as Bond
Registrar, for a single fully -registered Bond in the denomination
equal to the aggregate principal amount of this Bond plus all of
the Bonds then outstanding, and in the form of such single Bond as
provided for in the Resolution.
The Bonds of this issue maturing on or before September
1, 1990, are not subject to redemption prior to their respective
stated dates of maturity. Bonds which shall mature September 1,
1991, and thereafter shall, at the option of the Issuer, be
redeemable in whole or in part, in inverse numerical order and
maturity order, on September 1, 1990, or on any interest payment
date thereafter at par and accrued interest, plus the following
premiums, expressed as percentages of the par value of the Bonds
so redeemed, if redeemed in the following years:
5%, if redeemed on September 1, 1990, or thereafter,
to and including September 1, 1992;
4%, if redeemed on September 1, 1993, or thereafter,
to and including September 1, 1997;
3%, if redeemed on September 1, 1998, or thereafter,
to and including September 1, 2001;
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JUN 2 51980 BOOK 4;3 ...- `- r�
4b
n
0
of
JUN 2 5 1980
Boa 43 PAu 929
2`'s, if redeemed on Septti;Lcr 1, 2002, or thereafter,
to and including September 1, 2005,
1%, if redeemed on September 1, 2006, or thereafter,
to and including September 1, 2009;
Without premium, if redeemed September 1, 2010, or
thereafter, but prior to maturity;
provided, however, that notice of such redemption shall be given
in the manner required by the Resolution.
It is hereby certified and recited that all acts, con-
ditions, and things required to exist, to happen and to be per-
formed precedent to and in the issuance of this Bond, exist, have
happened and have been performed, in regular and due form and
time as required by the laws and Constitution of the State of
Florida applicable thereto; and that the issuance of this Bond,
and of the issue of Bonds of which this Bond is one, does not
violate any constitutional or statutory limitations or
provisions.
This Bond and the coupons appertaining thereto are and
have all the qualities aiid incidents of negotiable instruments
under 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 WITNESS WHEREOF, the County of Indian River, Florida,
has issued this Bond and has caused the same to be signed by its
Chairman and attested and countersigned by its Clerk, either
manually or with their facsimile signatures, and its corporate
seal or a facsimile thereof to be affixed, impressed, imprinted
or engraved hereon, and the interest coupons hereto attached to
be executed with the facsimile signatures of such officers, all
as of
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40
C7
0
® ( SEAL)
ATTESTED AND COUNTERSIGNED:
Clerk
COUNTY OF INDIAN RIVER, FLORIDA
By
Chairman
(FORM OF COUPON)
No,
$
On the lsr_ day of September, 19 , unless the Bond to
which this coupon ie .s attached is callable shall have been
Previously duly called for prior redemption and payment thereof
duly made or provided for, the County of Indian River, Florida,
will pay to bearer at - __
_ , from the special func]s descr ibeci i.n the Bond to which
this Eoupon is attached, the amount shown hereon in lawful money
of the United States of America, upon presentation and surrender
Of this coupon, being interest then due on its Water Revenue
Bond, Series 1980 (South County Water System), dated
19_, No.
COUNTY OF INDIAN RIVER, FLORIDA
By
(SEAL)
ATTESTED AND COUNTERSIGNED:
Clerk
Chairman
(PROVISIONS FOR REGISTRATION ON COUPON BONDS)
PROVISIONS FOR REGISTRATION
This Bond may be registered as to both principal and
interest on books kept_ for such purpose by such Clerk, as Bond
-12-
JUN 2 51,980
800N 43 rare 931
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 by the registered holder or hi.:, legal
representative and similarly noted by the Bond Registrar on the
books and in the registration blank below, but it may be
discharged from registration by being transferred to bearer,
after which it shall be transferable by delivery, 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 attached hereto.
Date of Name and Address of Signature of
Registration Registered Owner Bond Registrar
(FORM OF SINGLE BOND)
UNITED STATES OF AMERICA
STATE. OF FLORIDA
COUNTY OF INDIAN RIVER
WATER REVENUE BOND, SERIES 1980
(SOUTH COUNTY WATER SYSTEM)
KNOW ALI. MEN BY THESE PRESENTS, that the County of
Indian River, Florida, a public body created and existing under
and by virtue of the laws of the State of Florida (the "Issuer"),
for value received, hereby promises to pay to
,
on the first day of September, 19 from s
the pe-
cial funds hereinafter mentioned, the principal sum of $5,825,900
on the first day of September in the years and installments as
follows:
-13-
6
i
40
®®
Years
Amounts
Years
Amounts
1983
$ 53,900
2002
$137,000
1984
57,000
2003
144,000
1985
60,000
2004
151,000
1986
63,000
2005
158,000
1987
1988
66,000
69,000
2006
166,000
1989
72,000
2007
2008
174,000
183,000
1990
1991
76,000
2009
192,000
1992
80,000
84,000
2010
202,000
1993
88,000
2011
2012
212,000
223,000
1994
1995
93,000
97,000
2013
234,000
1996
102,000
2014
2015
245,000
258,000
1997
107,000
2016
271,000
1998
1999
112,000
118,000
2017
284,000
2000
124,000
2018
2019
298,000
31.3,000
2001
130,000
2020
329,000
and to pay, solely from'such special funds, interest on the
balance of such principal sum from time to time retraining unpaid,
from the date of the delivery of this Bond to the purchaser
thereof, at the rate of per centum( �) per annum,
payable on September 1, 1981, and per
thereafter on the
first_ day of September of each year. Both principal of and
interest on this Bond are payable at:
--,
' i.n lawful money of
the xr
Uned Stakes of America.yrp�yment.s of principal and
interest, including prepayments of installments of principal as
hereinafter provided, shall be noted by t_he owner and holder
hereof on the payment Record made a part of this Bond, and writ-
ten notice of the making of such not,:;t_i.on shall be promptly sent
to the Issuer. Upon final payment of principal and interest, this
Bond shall be surrendered to tilt: Issuc2r.
This Bond represents an authorized issue of Bonds in the
aggregate principal amount of $5,825,900 issued to finance a part
Of t_he cost of acquiring and constructing certain water facili.-
ti.es in the southern part_ of the Issuer (tlte "System,,under the
authority of and in full compliance with
Sthe Constitution andStatutes of the State of Florida, particularly Ch. 159, Fla.
Stat. (1979), and a resolution duly adopted by the Issuer on June
25, 1980 (the "Resolution"), and is subject_ to all the terms and
conditions of the Resolution.
This Bond and the interest_ titc.reon are payZble solely
from and secured by a prior lien upon and a pledge of the gross
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51, if paid on September 1, 1990, or thereafter,
to and including September 1, 1992;
4%, if paid on September 1, 1993, or thereafter,
to and including September 1, 1997;
3%, if paid on September 1, 1998, or thereafter,
to and including September 1, 2001;
2%, if paid on September 1, 2002, or thereafter,
to and including September 1, 2005;
1%, if paid on September 1, 2006, or thereafter,
to and including September 1, 2009;
Without premium, if paid September 11 2010, or
thereafter, but prior to maturity;
Provided, however, that notice of such prepayment_ shall be given
in the manner required by the Resolution.
It_ is hereby certified and recited that all acts, con-
ditions, and things required to exist, to happen and to be per-
formed precedent_ to and in the issuance of this Bond, exist_, have
happened and have been performed, in regular and due form and
time as required by the laws and Constitution of the State of
Florida applicable thereto; and that the issuance of this Bond
does not, violate any constitutional or statutory limitations or
provisions.
This Bond is and has all the qualities and incidents of
a negotiable instrument under the laws of the State of Florida.
IN WITNESS WHEREOF, the County of Indian River, Florida,
has issued this Bond and has caused the same to be signed by its
Chairman and attested and countersigned by its Clerk, and its
corporate seal to be impressed hereon, all as of
-16-
•
• ( SEAL)
ATTESTED AND COUNTERSIGNED:
Clerk `
R0f,K 3 pm r 9.35
COUNTY OF INDIAN RIVER, FLORIDA
B
Chairman-- ----
(FORM OF VALIDATION CERTIFICATE ON ALL BONDS)
VALIDATION CERTIFICATE
This Bond was validated by judgment, of the Circuit Court
for Indian River County, Florida, rendered on
1980. '
Chairman
( FORM OF ASSIGNMENT)
ASSIGNMENT
For valuable consideration, the UNITED STATES OF
AMERICA, acting through the U.S. DEPARTMENT OF AGRICULTURE,
FARMERS HOME ADMINISTRATION, does hereby assign, transfer aril
deliver to all of its right,
title and interest. �.n andto r�-this-ffi nd and all rights belonging
or appertaining to the assignor under and by virtue of this Bond.
U.S. DEPARTMENT OF AGRICULTURE,
FARMERS HOME ADMINISTRATION
By
Title:
Witnesses:
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(FORM OF PAYMENT RECORD)
PAYMENT RECORD
Principal
Due Date Principal Balance Interest Date Signature of.
(Sept. 1) Payment Due Pavment Paid Bondholder
1981 -0-
1982
0-
1982 -0-
1983
0-1983 $ 53,900 ---
1984 57,000-
1985 60,000 `- ----- `--
1986 63,000 — —
1987 661000 _ --"--- --'
1988 69,000 -- --
1989 72,000 -- - -`-
1990 76,000 --- - `--
19 91 801000
----- - --- -- -- ------ - -- 1992 84,000
1993 88,000
1994 93,000
-- - - ----- -- --- -------------_
1995 97,000
__-� -- --- - - — --- —-----
1 9 9 6 102,000 -` -- -_--J-
19 9 7 107,000 ----- -�---
19 9 8 112,000---_-��_--_--_--
19 9 9 118,000 --- `---`- -- - -- 2000 124,000 _— --- -_ _-- --------___-_--
2001 130,000 __ ---- " --- ---` -`- 2002 137,000 -- "- _`-`---`�-
2003 144,000 - ---- - 2004 151,000 --"T -- 2005 158,0002006 166,000 --- -'- -- -- -----_-`
2007 174,000 --- ----- -- ----- ---
2 0 0 8 183,000 - -�--- `- `--`--
2009 192,000
2010 2021000
2011 212 , 0 0 0---- ------ - --
2012 223,000 _ -- -- -�
2013 234,000 --
2014 245,000
2015 258,000-
2016 271,000 -- -` -
2017 284,000 -- ----- -� -- —
2018 298,000 - - -- --- 2019 313 , 000
----
2 0 20 3 2 9, 0 0 0 --"-- -` ---
-18-
JUN 2 5 1980 BnoK 43 Fnr,E7
w
PRINCIPAL INSTALLMENTS ON WHICH PAYMENTS HAVE
BEEN MADE PRIOR TO DUE DATE
®
Principal
Principal Du(2 Pri.nci.pal. Balance Date
Date Amount Prepaid Duo Si.rnar_ure o,
-- — _ Pai•d Bondholder
-19-
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40
ARTICLE III
COVENANTS, SPECIAL FU„DS
AND APPLICATION THEREOF
4 ® 3.01 Bonds Not to Be Indebtedness of Issuer. Neither
the Bonds nor t_le coupons attached r_}1eLero Shall be or constitute
obli.gat_i.ons or indebtedness of the Issuer as "bonds"
within the meaning of Art_. VII, 512, Fla. Const. (1968), but
shall be payable solely from and secured by a prior lien upon and
pledge of the Pledged Funds as herein provided. No owner or
holder of any Bond or coupon appertaining thereto shall ever have
the right to compel the exercise of any ad valorem taxing power
to pay such Bond or coupon or Operating Expenses, or be entitled
to payment-_ of such Bond or coupon from any moneys of the Issuer
except_ from the Pledged Funds in the manner provided herein.
3.02 Security for Bonds. The payment_ of the principal
of and interest_ on the Bonds small be secured forthwith equally
and ratably by a pledge of and prior lien upon the Pledged
Funds. The Issuer does hereby irrevocably pledge the Pledged
Funds to the payment_ of the principal of and interest_ on the
Bonds and to the payment into the Sinking Fund at the times pro-
vided of the sums required to secure to t_he holders of the Bonds
the payment of the principal thereof and interest_ thereon at the
respective maturities of the Bonds and coupons so held by them.
3.03 Application of Bond Proceeds. The Issuer hereby
covenants that i. t_ will establish a separate account: or accounts
into which shall be deposited the proceeds from the sale of t_he
Bonds (except such portion thereof as shall be necessary to pay
interest on the Bonds during the acquisition and construction of
the Project, which shall be deposited in the Sinking Fund), grant
funds 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 specified in the Project Cost estima-
tes and as shall be approved by the Issuer's consulting Engineers
for the Project.
The Issuer's share of any liquidated damages or other
moneys paid by defaulting contractors or rhei.r sureties, and all
proceeds of insurance compensating for damages to the Project_
during the period of acqui.si.t:i.on and construction, shall be depo-
sited in the Construction Account: to assure completion of the
Project.
Moneys in the Construction Account shall be secured by
the depository bank in accordance wi.t:il U.S. Treasury Department
Circular 176 and i.n the manner prescribed by the laws of the
-- 20-
j U N 2`5 1990 MOK 43 F,Au 939
State of Florida relating to the securing of public funds. When
the moneys on deposit in the Construction Account_ exceed the
estimated disbursements on account_ of the Project for the next 90
days, the Issuer may direct the depository bank to i.tivest- such
excess funds in direct obligations of, or obligations the prin-
cipal of and interest on which are guaranteed by, the Un j. ted
States of America, which shall be subject to redemption at any
time at face value pursuant to the re<iuest_ of the holder thereof.
The earnings from any such investment shall be deposited in the
Construction Account..
When the construction of the Project has been completed
and all construction costs have been paid in full, all funds
remaining in the Construction Account_, except_ grant funds, shall
be deposited in the Sinking Fund, and the Construction Account
shall be closed.
All moneys deposited in the Construction Account shall
be and constitute a trust fund created for the purposes stated,
and there is hereby created a lien upon such fund in favor of the
holders of the Bonds until the moneys thereof shall have been
applied in accordance with this Instrument.
3.04 Covenants of the Issuer. So long as any of the
principal of or interest: on any of tike Bonds shall be outstanding
and unpaid, or until there shall have been set, apart in the
Sinking Fund, including the Reserve Account_ therein, a sum Suf-
ficient 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 as follows:
(A) Annual Budget of Operating Pxenses. 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
Operating Expenses for the remainder of the then current Fiscal
Year. 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 Operating Expenses for the ensuing Fiscal Year,
and will mail a copy of such Annual Budget or amendments thereto
to any requesting bondholder. The Issuer covenants that the
Operating Expenses incurred in any year will not exceed the
reasonable and necessary amounts required therefor, and that it
will not expend any amount or incur any obligations for the
Operation, maintenance and repair of the System in excess of the
amount provided for Operating Expenses in the Annual Budget,
except upon resolution of the its Board of County Commissioners
that such expenses are necessary to operate and maintain the
System.
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(B) Revenue Fund. The Issuer covenants and agrees that
on or before the dare ofdeliveryof the Bonds to the purchaser
thereof, it will 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 county funds, and maintain so long as any of
the Bonds are outstanding, a special fund to be known as the
"Indian River County water System Revenue Fund (South County
Water System)." Into the Revenue Fund the Issuer shall deposit
promptly as received all Gross Revenues. The Revenue Fund shall
be held by the Issuer separate and apart from all other funds and
shall be expended and used only in the manner and order specified
in this subsection (B) and in subsections (C); -(D) and (G) of
this section.
(C) Bond and Interest Sinking Fund. The Issuer cove-
nants and agrees to establish with ai 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 county funds, a special fund or funds, collec-
tively called the "Indian River County water System Bond and
Interest Sinking Fund (South County water System)," to be used
exclusively for the purposes hereinafter mentioned. After deli-
very of the Bonds to the purchaser thereof, the Issuer shall
transfer on or before the 15th day of each month from the Revenue
Fund and deposit to the credit of: the Sinking Fund the following
amounts:
(1) A sum equal to 1/12 of the amount of one year's
interest on all the Bonds then outstanding, together with the
amount of any deficiency in prior deposits for interest; and
(2) Beginning on September 15, 1982, a sum equal to
1/12 of the principal of the Bonds maturing on the next_ suc-
ceeding anniversary date, together with the amount of any defi-
ciency in prior deposits for principal.
(3) After fulfillment of the requirements of paragraphs
(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 Reserve Account in the Sinking Fund the sum of $2,880 until
such time as the funds and investments therein shall equal
$345,500 and monthly thereafter such amount as may be necessary
to maintain in the Reserve Account the sum of $345,500 but not
exceeding $2,880 monthly. Moneys in tile 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 improvements or extentions to the
System which shall increase its Net Revenues and which shall be
approved by the consulting engineers, if the Issuer shall not
-22-
JUN 2 5 1980 Booz 43 pma 941
then be in default under any of the provisions of this
Instrument, and (3) paying tho principal of and interest on the
Bonds in the event that the other moneys in the Sinking Fund
shall ever be insufficient to meet such payments.
(D) Operation and Maintenance Fund. The Issuer cove-
nants 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 Stare of
Florida to receive county funds, a special fund to be known as
the "Indian River County Water System Operation and Maintenance
Fund (South County Water System)," which shall be used exclusi-
vely for the purpose of receiving funds to be•transferred monthly
by the Issuer from the Revenue Fund, and for paying, as they
accrue, Operating Expenses pursuant to the Annual Budget_. After
delivery of the Bonds to the purchaser thereof, and after having
made the deposits to the Sinking Fund as provided in subsection
(C) above, the Issuer shall transfer on or before the 15th day of
each month from the Revenue Fund and deposit to the credit of the
Operation and Maintenance Fund a sum sufficient to pay Operating
Expenses for the current month, all in accordance with the Annual
Budget. Any balance remaining in the Operation and Maintenance
Fund at the end of each Fiscal Year and not required to pay costs
incurred during such Fiscal Year shall be deposited promptly into
the Revenue Fund.
(E) Deficiency or Excess Funds. Subject to the provi-
sions for the disposition of Gross Revenues in subsections (C)
and (D), which are cumulative, the Issuer shall, on or before the
15th day of each month, transfer to the Reserve Account in the
Sinking Fund the balance of moneys remaining in the Revenue Fund
until the funds and investments in the Reserve Account equal the
amount of $345,500 and thereafter whenever funds and investments
in the Reserve Account equal $345,500, the Issuer may use the
surplus funds in the Revenue Fund for the purchase or redemption
of Bonds or for any other lawful purpose.
(F) Trust Funds. The funds and accounts created and
established by this Instrument shall constitute trust_ funds for
the purpose provided herein for such funds. All of such funds,
except as hereinafter provided, stall be continuously secured in
the same manner as county 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
depository bank, upon request_ by the Issuer, in direct obliga-
tions of, or obligations the principal of and interest on which
are guaranteed by, the United States of America and which shall
be subject to redemption at face value at anytime at the option
of such holder; and the moneys on deposit to the credit of the
Sinking Fund may be so invested in such obligations which shall
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mature not later than fifteen (15) days prior to the dare on
® whish such moneys shall be needed to pay the pri.nci.pal of and
interest on the Bonds in the manner herein provided, but moneys
on deposit to the credit of the Revenue Fund and the operation
and I,ai.ntenance Fund shall be not invested at any time. The
�i
securities so purchased as an investment of funds shall be deemed
at all times to be a part of the account from which such funds
were withdrawn, and any loss resulting from such i.nvestr;cnt shall
be charged to such account., and any interest accruing on such
investment or any other profit realized therefrom shall be depos-
ited to the Reserve Account until there shall be on deposit to
the credit of the Reserve Account the maximum amount required by
this Instrument_, after which such interest or profit. shall be
deposited in the Revenue Fund.
(G) Rates and Charges. The Issuer covenants and
agrees that it. gill fix, estai)lish, revise from time to time
whenever necessary and maintain always, so long as any of the
Bonds are outstanding, such schedule of rates, fees, rentals and
charges for the services and facilities of the System which will
produce revenues which shall be sufficient to provide for current
debt service and reserve requirements for the Bonds and pay
Operating Expenses; and -that such rates, fees, rentals or other
charges will not be reduced so as to be insufficient to provide
funds for such purposes. The Issuer covenants and agrees that so
long as any of the Bonds are outstanding and unpaid, at the same
time and in like manner that the Issuer prepares its Annual
Budget of Operating Expenses, the Issuer shall annually prepare
an estimate of Gross Revenues for the ensuing Fiscal Year, and to
the extent that Gross Revenues are insufficient to pay such debt
service requirements during such ensuing year, build up and main-
tain the required reserves for all such obligations and pay
Operating 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.
(H) Issuance of Other Obli.cati.ons.
(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 herein 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, through the issuance
of parity Bonds conforming to the requirements of paragraph (3)
of this subsection; but except_ to complete the Project, it will
not issue any other obli.cjati.ons payable from or secured by the
Pledged Funds or any part_ thereof, unless the conditions
hereinafter set forth shall be met, oc: unlet:; the lien of such
Obligations is junior and suhordi.nate in all respects to the lien
Of the Bonds.
-24-
JUN- 25 19l]0 1ii0t 43 PACE 943
(2) The Issuer shall have the right to finance addi.--
tional water and/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 Gross Revenues and any other security pledged to the Fronds,
provided in each inst_ancr3 that.;
(a) The facility or facilities to be acquired or built
from the proceeds of the additional parity Bonds is or are made a
part of the System and its or their revenues are pledged as addi-
tional security for the additional parity Bonds and the
outstanding Bonds.
(b) The Issuer is in compliance with all covenants and
undertakings of the Issuer (i.) herein contained, in connection
with all Bonds then outstanding and (ii) made with respect to any
other bonds or other obligations of the Issuer payable from the
Gross Revenues 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 least_ the next preceding 7.4 months, or if at such
time the Bonds shall not have been outstanding for 24 months, then
for the period ghat the Bonds shall have been outstanding.
(c) The annual Net Revenues for the Fiscal Year next_
preceding the issuance of additional parity bonds are certified
by an independent certified public accountant not regularly
employed by the Issuer, to have been equal to at least_ one and
twenty -hundredths (1.20) times the average annual requirements
for the payment of the principal of and interest on all Bonds
then outstanding.
(d) The estimated average annual net revenues of the
facility or facilities to be constructed and acquired with the
proceeds of such additional Bonds (arid any other funds pledged
and set aside for such purpose), when added to the estimated
future average annual Net Revenues of the then existing System,
shall be at least one and twenty -hundredths (1.20) times the
average annual debt, service requi.rement_s for principal and
interest on all outstanding Bonds and on the additional Bonds
proposed to be issued. Estimates of future revenues and
Operating Expenses shall be furnished by recognized independent
consulting engineers and approved by the Board of County
Commissioners of the Issuer and by the Chairman thereof, and
shall be forecast over a period of riot. exceeding ten (10) years
from the date of the additional Bonds proposed to be issued.
Provided, however, the conditions provided by this paragraph and
by the next preceding paragraph (c) may be waived or modified by
the written consent of the holders of seventy-five per centum
(75%) of the Bonds then outstanding.
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(3) The Issuer hereby covenants and agrees that in the
event additional series of parity Bonds are issued, it will pro-
vide that such parity Bonds shall mature according to a schedule
which most closely approximates equal annual installments of com-
bined 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 and the maximum amount to be
maintained in the Sinking Fund, including the Reserve Account
therein, on the same basis as hereinabove prescribed, to reflect.
the average annual deb_ service on the additional Bonds; and it
will make such additional Bonds payable as to principal on
7eptember 1 of each year in which principal falls due and the
oupons attached thereto payable on September 1 of each year. If
i,; any subsequently issued series of Bonds secured by a parity
lien on the revenues of the System it is provided that excess
revenues shall be used to redeei,i Bonds in advance of scheduled
maturity, or if the Issuer at its option undertakes to redeem
Outstanding Bonds in advance of scheduled maturity, the Issuer
covenants that calls of Bonds will be applied to each series of
Bonds on an equal pro rata basis (reflecting the proportion that
the amount originally issued of each series bears to the amount
originally issued of• eacu of the other Series) 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 Outstanding Bonds which may be called at
par prior to calling any Bonds that are callable at a premium.
(I) 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
ranking equal or prior to the charge or lien of the holders of
the Bonds. Notwithstanding the foregoing, the Issuer may at any
time permanently abandon use of, or sell at fair market value,
any of its System faci.li.t_i.es, provided that:
(a) It is in compliance with all covenants and under-
takings in connection with all of its Bonds then outstanding, and
the debt service reserve for such Bonds has been fully
established;
(b) Ir_ will, in the event of sale, apply t_he proceeds
to either (1) redemption of Outstanding 13onc3s in accordance with
the provisions governing repayment of Bonds in advance of
maturity, or (2) replacement of r_he facility so disposed of by
another faci.li.ty the revenues of which shall be incorporated into
the System as hereinbefore provided;
-26-
.JUN 15 1980, am 43 f'A-,E 945
•M -
t®
I (c) It is certified, prior to any abandonment of use,
that the facility to be abandoned is no longer economically
®
feasible of producing Net Revenues; and
(d) It_ is certified that the estimated Net Revenues of
the 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 earnings test hereinbefore
provided in this subsection governing issuance of additional
parity bonds.
(J) Insurance on System. While any of the Bonds shall
remain outstanding, the Issuer shall carry at -least the following
insurance coverage to the extent_ deemed necessary by the Issuer's
Attorney:
(1) Fire and extended coverage on the insurable por-
tions of the system, in amounts sufficient to provide for not
less than full recovery whenever a loss from perils insured
against does not exceed eighty per centum (80%) of the full
insurable value of the damaged facility; and flood damage
insurance shall be carried to the full insurable value, as recom-
mended by consulting engineers, of all property of the System
which may be subject to -flood damage and shall be situated in
flood plain area.
(2) Public liability insurance relating to the opera-
tion 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 which 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
for more than one person involved in one accident to protect the
Issuer from claims for bodily injury and death, and not less than
$10,000 against claims for damage to property of others which may
arise from the Issuer's operation of vehicles.
All such insurance shall be carried for the benefit of -
the holders of the Bonds. AJ.1 moneys received by the Issuer by
reason of insurance coverage, except_ liability coverage, shall be
deposited to the credit, of the Reserve Account and are hereby
pledged by the Issuer as security for the Bonds, until and unless
such proceeds are used to rememdy the loss or damage for which
such proceeds are received, either by repairing the property
damaged or replacing the property destroyed within ninety (90)
days from the receipt_ of such proceeds.
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(K) Maintenance of Svstem. The Issuer will complete
® the acduisi.r.i.on and consr_ructi.on of the Project in an economical
and efficient manner with all practicable dispatch, and
thereafter will maintain the System in good condition and con-
tinuously operate the same in an efficient manner at a reasonable
i W cost.
(L) No Free Services. The Issuer will not render or
cause to be rendered any tree services of any nature by its
System, nor will any preferential rates be established for users
Of the same class; 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 receiving like service under similar circumstances
shall be charged to the Issuer. Such charges shall be oai.d as
they accrue, and the 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 ocher revenues derived from such operation of the
System.
(M) Failure of User to T'c.�•� for Servi.crS. Upon failure
of any user oL any product, servi.ees or facilities of the System
to pay for the same within sixty (60) days after the Issuer shall
have billed such user therefor, the lssuer shall shut off the
connection of such user and shall not furnish him or permit him
to receive from t_he System further service until all obligations
owed by him to the Issuer on account of services, including
disconnection and reconneL'_i.on charges, shall have been paid in
full. This covenant shall not, however, prevent-_ the Issuer from
causing any System connection to be shut: off sooner.
(N) Enforcement_ of Collections. The Issuer will dili-
gently enforce and collect the rages-, fees, rentals and other
charges for the services and facilities of the System; and will
take all steps, actions and proceedings for the enforcement and
collection of such rates, fees, rentals and other charges as
shall become delinquent_ to t_he full extent permitted or
authorized by law; and will maintain accurate records with
respect thereto. All such fees, rates, rentals, charges and
revenues herein pledged shall, as collected, be held in trust to
be applied as provided in this Instrument and not otherwise.
(0) ComEli.ance with Laws and Regulations. The Issuer
covenants and agrees to perLoriit and comply with, in every
respect, the loan and grant agreements which it might have with
the Government_ or with any other governmental agency, and all
applicable federal and state laws and regulations.
-28-
s
i,. JUN w 51980 BOOK 43 pAu 94 f
(P) Remedies. Any bolder of the Bonds or any coupons
appertaining thereto issued under the Prov. -ions of this
Instrument, or any trustee acting for the h�_ders of such Bonds
and coupons, ;ay either at law or in equity, by suit, action,
mandamus or other proceedings in any court of competent_ jurisdic-
tion, protect and enforce any and all rights, including the right
to the appointmo nt of a receiver, exi.st_i.ng under the laws of the
State of Florida, or granted and contained in this Instrument_,
and may enforce and compel the perfori7ance 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.
Nothing herein, however, shall be construed to grant_ to
any holder of such Bonds or coupons any lien on any real property
of the Issuer.
(Q) Records and Audits. The Issuer shall keep books
and records of the Pledged Funds, which such books and records
shall be kept separate and apart from all other books, records
and accounts of the Issuer, and any holder of a Bond or Bonds or
the coupons applicable thereto shall have the right, at all
reasonable times, to inspect such books and records.
So long as any'of the Bonds shall be outstanding, the
Issuer. will furnish on or before ninety (90) days after the close
of each Fiscal Year, to any bondholder who shall request the same
in writing, copies of an annual audit_ report prepared by an Inde-
pendent certified public accountant or an auditing official of
the State of Florida, covering for the preceding Fiscal Year, in
reasonable detail, the financial condition and record of opera-
tion of the System.
(R) Connection with System. The Issuer will, to the
full extent_ permitted by law, require all lands, buildings, resi.-
dences 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.
(S) Fidelity Bond. The Issuer will require each
employee who may have possession of any Pledged Funds to be
covered by a fidelity bond written by a responsible indemnity
company in an amount fully adequate to protect_ the Issuer from
loss.
(T) Government Approval of Extensions and Financi.nq.
Anything herein to -the contrary notwithstanding, while the
-29-
0i JCe
Government is the holder of any of the Bonds, the IGSLl r will not
borrow any money from any source or enter into any contract or
agreement or incur any other li.abi.li.t:y in connection with making
extensions of or improvements to the System,, other than normal
maintenance oC the System, or permi.t others to cio so, without
obtaining the prior written consent_ of the Government_,
(U) Reimbursement of Advances and Interest Thereon.
While the Government_ shall be the holder OLE 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 requi.r-2d to protect the 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 aft-z!r any such expenditure by the
Government_. Any such amount_ due the Governmment_ shall be secured
by a pledge of and lien upon the Pledged Funds, on a parity with
the Bonds, and payment thereof shall take priority over any Other
payments from the Reserve Account.
ARTICLE IV
MISCF;r,r,ANEOUS PROVISIOT-IS
4.01 Modification or A_mendtment. No material modifica-
tion or amendment of this Inst_runtent may be made without the con-
sent_ in writing of the holders of two-thirds or more ill princi.pal
amount_ of the Bonds then outstanding; provided, however, that no
modification or amendment shall permit a change in the maturity
Of such Bonds or a reduction in the rate of interest thereon, or
in the amount of the principal obligation, or affect the uncon-
ditional promise of the Issuer to charge and collect such rates,
fees, rentals and charges for the use of the product, services
and facilities of the System and apply the same as herein
provided, or reduce the number of: such Bonds the written consent
of the holders of which are required by this Section for such
modification or amendment_, without the consent_ of the holder, of
all such Bonds,
4.02 Creation of Superior Liens. The Issuer covenants
that except as i��rcin provided, it will not issue any other Bonds,
certificates or obligations of any kind or nature or create or
cause or permit to be created any debt, lien, pledge, assignment
or encumbrance or charge payable from or enjoying a lien upon any
of the Pledged Funds ranking prior and superior to the lien
created by this Instrument for the benefit- of the holders of the
Bonds.
4.03 Arbit-rade, No use wi.]-1 be made of the proceeds
of the Bonds or tie cross Revenues which will cause the Bonds to
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JUN 19ilo BOOT( 43 PACE 949
be "arbitrage bends" within the menni.ng of the Internal Revenue
Code. The issuer at all h_i.mes while the Bonds and the interest
thereon are outstanding will comply with the reyui.rements of
Section 103(c) of: the Internal Revenue Code and any valid and
applicable rules and regulations of. the Internal Revenue Service
issued thereunder. ,
4.04 Severability of_Inva.li.d Provisions. If any one or
more of the covenants, agreements or provisions of this
Instrument or of the Bonds should be held contrary to any express
provision of law or contrary to t_he 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 pro-
visions of this Instrument_ and of the Bonds.
4.05 Validation Authorized. The Issuer's Attorney is
hereby authorized and directed to institute appropriate pro-
ceedings in the Circuit Court for Indian River County, Florida,
for the validation of t_he Bonds.
4.05 ConflicUfl Repealed. All reg>olut.i.ons or parts of
resolutions in conf:li.ct herewith are hereby repealed.
4.07 Effective Date. This Instrument shall take effect
immediately upon its passage.
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