Okaloosa County BOCC — April 21, 2015 — Bond Resolution.3 — reading text

NGN Draft No.3 4/13/15 019.23 OKALOOSA COUNTY, FLORIDA _______________________ WATER AND SEWER REVENUE REFUNDING BONDS RESOLUTION _______________________ ADOPTED APRIL 21, 2015  TABLE OF CONTENTS PAGE ARTICLE I GENERAL SECTION 1.01. DEFINITIONS ............................................................................................1 SECTION 1.02. AUTHORITY FOR RESOLUTION .........................................................12 SECTION 1.03. RESOLUTION TO CONSTITUTE CONTRACT....................................12 SECTION 1.04. FINDINGS ................................................................................................13 ARTICLE II AUTHORIZATION, TERMS, EXECUTION AND REGISTRATION OF BONDS SECTION 2.01. AUTHORIZATION OF BONDS..............................................................14 SECTION 2.02. EXECUTION OF BONDS........................................................................14 SECTION 2.03. AUTHENTICATION................................................................................15 SECTION 2.04. TEMPORARY BONDS ............................................................................15 SECTION 2.05. BONDS MUTILATED, DESTROYED, STOLEN OR LOST.................15 SECTION 2.06. INTERCHANGEABILITY, NEGOTIABILITY AND TRANSFER.......16 SECTION 2.07. FORM OF BONDS ...................................................................................17 ARTICLE III REDEMPTION OF BONDS SECTION 3.01. PRIVILEGE OF REDEMPTION..............................................................26 SECTION 3.02. SELECTION OF BONDS TO BE REDEEMED .....................................26 SECTION 3.03. NOTICE OF REDEMPTION....................................................................26 SECTION 3.04. REDEMPTION OF PORTIONS OF BONDS ..........................................27 SECTION 3.05. PAYMENT OF REDEEMED BONDS ....................................................28 ARTICLE IV SECURITY; FUNDS AND ACCOUNTS; APPLICATION OF GROSS REVENUES SECTION 4.01. BONDS NOT TO BE INDEBTEDNESS OF ISSUER ............................29 SECTION 4.02. SECURITY FOR BONDS ........................................................................29 SECTION 4.03. SEPARATE ACCOUNTS ........................................................................29 SECTION 4.04. CONSTRUCTION FUND ........................................................................30 SECTION 4.05. CREATION OF FUNDS AND ACCOUNTS ..........................................31 SECTION 4.06. DISPOSITION OF GOVERNMENT GRANTS, GROSS REVENUES AND SPECIAL ASSESSMENTS.................................32 SECTION 4.07. WATER CONNECTION FEES FUND....................................................40 SECTION 4.08. SEWER CONNECTION FEES FUND ....................................................40 SECTION 4.09. REBATE FUND........................................................................................41 SECTION 4.10. RATE STABILIZATION FUND..............................................................41 SECTION 4.11. INVESTMENTS .......................................................................................42 i  ARTICLE V COVENANTS SECTION 5.01. GENERAL ................................................................................................43 SECTION 5.02. OPERATION AND MAINTENANCE ....................................................43 SECTION 5.03. ANNUAL BUDGET .................................................................................43 SECTION 5.04 RATES ......................................................................................................43 SECTION 5.05. BOOKS AND RECORDS ........................................................................44 SECTION 5.06. ANNUAL AUDIT.....................................................................................44 SECTION 5.07. NO MORTGAGE OR SALE OF THE SYSTEM ....................................44 SECTION 5.08. INSURANCE ............................................................................................45 SECTION 5.09. NO FREE SERVICE .................................................................................46 SECTION 5.10. NO IMPAIRMENT OF RIGHTS; NO COMPETING SYSTEM ............46 SECTION 5.11. COMPULSORY CONNECTIONS...........................................................47 SECTION 5.12. ENFORCEMENT OF CHARGES............................................................47 SECTION 5.13. UNIT BILLS .............................................................................................47 SECTION 5.14. COVENANTS WITH CREDIT BANKS AND INSURERS....................47 SECTION 5.15. COLLECTION OF SPECIAL ASSESSMENTS......................................47 SECTION 5.16. RE-ASSESSMENTS.................................................................................48 SECTION 5.17. COLLECTION OF CONNECTION FEES...............................................48 SECTION 5.18. CONSULTING ENGINEERS ..................................................................48 SECTION 5.19. FEDERAL INCOME TAXATION COVENANTS; TAXABLE BONDS................................................................................................48 SECTION 5.20. COVENANTS RELATING TO FEDERAL SUBSIDY BONDS ............49 ARTICLE VI SUBORDINATED INDEBTEDNESS AND ADDITIONAL BONDS SECTION 6.01. SUBORDINATED INDEBTEDNESS .....................................................50 SECTION 6.02. ISSUANCE OF ADDITIONAL BONDS .................................................50 SECTION 6.03. BOND ANTICIPATION NOTES.............................................................53 SECTION 6.04. ACCESSION OF SUBORDINATED INDEBTEDNESS TO PARITY STATUS WITH BONDS.....................................................53 ARTICLE VII DEFAULTS AND REMEDIES SECTION 7.01. EVENTS OF DEFAULT ..........................................................................54 SECTION 7.02. REMEDIES ...............................................................................................54 SECTION 7.03. DIRECTIONS TO TRUSTEE AS TO REMEDIAL PROCEEDINGS..................................................................................55 SECTION 7.04. REMEDIES CUMULATIVE....................................................................55 SECTION 7.05. WAIVER OF DEFAULT..........................................................................55 SECTION 7.06. APPLICATION OF MONEYS AFTER DEFAULT ................................55 SECTION 7.07. CONTROL BY INSURER........................................................................56 ii  ARTICLE VIII SUPPLEMENTAL RESOLUTIONS SECTION 8.01. SUPPLEMENTAL RESOLUTION WITHOUT BONDHOLDERS' CONSENT...........................................................................................58 SECTION 8.02. SUPPLEMENTAL RESOLUTION WITH BONDHOLDERS' AND INSURER'S CONSENT......................................................................58 SECTION 8.03. AMENDMENT WITH CONSENT OF INSURER ONLY ......................60 ARTICLE IX DEFEASANCE SECTION 9.01. DEFEASANCE .........................................................................................61 ARTICLE X MISCELLANEOUS SECTION 10.01. CAPITAL APPRECIATION BONDS......................................................63 SECTION 10.02. SALE OF BONDS ....................................................................................63 SECTION 10.03. SEVERABILITY OF INVALID PROVISIONS ......................................63 SECTION 10.04. VALIDATION AUTHORIZED................................................................63 SECTION 10.05. REPEAL OF INCONSISTENT RESOLUTIONS ....................................63 SECTION 10.06. EFFECTIVE DATE ..................................................................................63 iii  RESOLUTION NO. ______ A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF OKALOOSA COUNTY, FLORIDA AUTHORIZING THE ISSUANCE OF WATER AND SEWER SYSTEM REVENUE BONDS FROM TIME TO TIME FOR THE PRINCIPAL PURPOSES OF FINANCING AND REFINANCING THE ACQUISITION, CONSTRUCTION AND EQUIPPING OF CAPITAL IMPROVEMENTS TO THE COUNTY'S WATER AND SEWER UTILITY SYSTEM AND FOR OTHER LAWFUL PURPOSES; PLEDGING THE NET REVENUES OF THE COUNTY'S WATER AND SEWER UTILITY SYSTEM AND OTHER FUNDS TO SECURE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON BONDS ISSUED HEREUNDER; PROVIDING FOR PAYMENT OF THE BONDS FROM SUCH REVENUES AND OTHER FUNDS; PROVIDING FOR THE RIGHTS OF THE HOLDERS OF BONDS ISSUED HEREUNDER; MAKING CERTAIN OTHER COVENANTS AND AGREEMENTS IN CONNECTION WITH BONDS ISSUED HEREUNDER; AND PROVIDING FOR AN EFFECTIVE DATE FOR THIS RESOLUTION. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF OKALOOSA COUNTY, FLORIDA that: ARTICLE I GENERAL SECTION 1.01. DEFINITIONS. When used in this Resolution, the following terms shall have the following meanings, unless the context clearly otherwise requires: "Accreted Value" shall mean, as of any date of computation with respect to any Capital Appreciation Bond, an amount equal to the principal amount of such Capital Appreciation Bond (the principal amount at its initial offering) plus the interest accrued on such Capital Appreciation Bond from the date of delivery to the original purchasers thereof to the Interest Date next preceding the date of computation or the date of computation if an Interest Date, such interest to accrue at a rate not exceeding the legal rate, compounded semiannually, plus, with respect to matters related to the payment upon redemption or acceleration of the Capital Appreciation Bonds, if such date of computation shall not be an Interest Date, a portion of the difference between the Accreted Value as of the immediately preceding Interest Date and the Accreted Value as of the immediately succeeding Interest Date, calculated based on the assumption that Accreted Value accrues during any semi-annual period in equal daily amounts on the basis of a 360-day year. "Act" shall mean Chapter 125, Florida Statutes, the Constitution of the State of Florida, and other applicable provisions of law. "Additional Bonds" shall mean the obligations issued at any time under the provisions of Section 6.02 hereof on parity with any Outstanding Bonds.  "Annual Audit" shall mean the annual audit prepared pursuant to the requirements of Section 5.06 hereof.