Okaloosa County BOCC — October 2, 2012 — Okaloosa Loan Agreement (Airport Revenues) — reading text

LOAN AGREEMENT (AIRPORT REVENUES) AMONG FLORIDA LOCAL GOVERNMENT FINANCE COMMISSION AND OKALOOSA COUNTY, FLORIDA AND JPMORGAN CHASE BANK, N.A. Dated as of December 4, 2012 FLORIDA LOCAL GOVERNMENT FINANCE COMMISSION POOLED COMMERCIAL PAPER LOAN PROGRAM  TABLE OF CONTENTS Page ARTICLE I DEFINITIONS SECTION 1.01. DEFINITIONS ...................................................................................... 6 ARTICLE II REPRESENTATIONS AND WARRANTIES OF PUBLIC AGENCY SECTION 2.01. REPRESENTATIONS AND WARRANTIES .................................. 17 ARTICLE III LOAN TERM AND THE LOANS SECTION 3.01. COMMENCEMENT OF LOAN TERM ............................................ 20 SECTION 3.02. TERMINATION OF LOAN TERM .................................................. 20 SECTION 3.03. THE LOANS. ..................................................................................... 20 SECTION 3.04. NOTICE OF DRAW........................................................................... 21 ARTICLE IV LOAN TERM AND LOAN CLOSING REQUIREMENTS SECTION 4.01. COMMENCEMENT DATE SUBMISSIONS ................................... 23 SECTION 4.02. CONDITIONS PRECEDENT TO LOANS AND DRAWS .............. 23 SECTION 4.03. LOAN SUBMISSIONS ...................................................................... 24 SECTION 4.04. DRAW SUBMISSIONS ..................................................................... 24 ARTICLE V LOAN REPAYMENTS SECTION 5.01. PAYMENT OF LOAN REPAYMENTS ........................................... 26 SECTION 5.02. CALCULATION OF LOAN RATE .................................................. 28 SECTION 5.03. LOAN REPAYMENTS ...................................................................... 29 SECTION 5.04. MAXIMUM LEGAL INTEREST RATE. ......................................... 30 SECTION 5.05. COSTS OF ISSUANCE ..................................................................... 30 SECTION 5.06. MANDATORY PREPAYMENT ....................................................... 31 SECTION 5.07. OBLIGATIONS UNCONDITIONAL ............................................... 31 SECTION 5.08. COORDINATION WITH AIRPORT INDENTURE ........................ 31 ARTICLE VI SECURITY FOR LOANS AND PUBLIC AGENCY COVENANTS SECTION 6.01. STATUS OF LOAN OBLIGATIONS ............................................... 33 i SECTION 6.02. SECURITY FOR LOAN REPAYMENTS ........................................ 33 SECTION 6.03. PLEDGED REVENUES .................................................................... 33 SECTION 6.04. COVENANT TO BUDGET AND APPROPRIATE ......................... 34 SECTION 6.05. PAYMENT COVENANT .................................................................. 35 SECTION 6.06. ADDITIONAL COVENANTS .......................................................... 36 ARTICLE VII ASSIGNMENT AND PAYMENT BY THIRD PARTIES SECTION 7.01. ASSIGNMENT BY COMMISSION .................................................. 41 SECTION 7.02. ASSIGNMENT BY PUBLIC AGENCY ........................................... 41 ARTICLE VIII EVENTS OF DEFAULT AND REMEDIES SECTION 8.01. EVENTS OF DEFAULT DEFINED. ................................................. 42 SECTION 8.02. NOTICE OF DEFAULT..................................................................... 43 SECTION 8.03. REMEDIES ON DEFAULT............................................................... 43 SECTION 8.04. ATTORNEY'S FEES AND OTHER EXPENSES ............................. 44 SECTION 8.05. APPLICATION OF MONEYS .......................................................... 44 SECTION 8.06. NO REMEDY EXCLUSIVE; WAIVER, NOTICE ........................... 44 SECTION 8.07. ASSIGNMENT TO BANK ................................................................ 45 ARTICLE IX EXCESS FUNDS SECTION 9.01. EXCESS FUNDS................................................................................ 46 ARTICLE X MISCELLANEOUS SECTION 10.01. NOTICES ............................................................................................ 47 SECTION 10.02. BINDING EFFECT ............................................................................ 48 SECTION 10.03. SEVERABILITY ................................................................................ 48 SECTION 10.04. AMENDMENTS, CHANGES AND MODIFICATIONS ................. 48 SECTION 10.05. EXECUTION IN COUNTERPARTS ................................................ 48 SECTION 10.06. APPLICABLE LAW .......................................................................... 49 SECTION 10.07. WAIVER OF JURY TRIAL ............................................................... 49 SECTION 10.08. BENEFIT OF NOTEHOLDERS; COMPLIANCE WITH INDENTURE ................................................................................. 49 SECTION 10.09. CONSENTS AND APPROVALS ...................................................... 49 SECTION 10.10. IMMUNITY OF OFFICERS, EMPLOYEES AND MEMBERS OF COMMISSION ........................................................................ 49 SECTION 10.11. CAPTIONS ......................................................................................... 49 ii SECTION 10.12. NO PECUNIARY LIABILITY OF COMMISSION ......................... 49 SECTION 10.13. PAYMENTS DUE ON SATURDAYS, SUNDAYS AND HOLIDAYS ................................................................................... 50 SECTION 10.14. RIGHT OF OTHERS TO PERFORM PUBLIC AGENCY'S COVENANTS................................................................................ 50 EXHIBIT A FORM OF PUBLIC AGENCY COUNSEL'S OPINION.............. A-1 EXHIBIT B FORM OF PUBLIC AGENCY'S CERTIFICATE ........................ B-1 EXHIBIT C CREDIT FACILITY FEE CERTIFICATE ................................... C-1 EXHIBIT D FORM OF NOTE ........................................................................... D-1 EXHIBIT E AGREEMENT RE: CONTINGENCY ACCOUNT ...................... E-1 iii  LOAN AGREEMENT THIS LOAN AGREEMENT (AIRPORT REVENUES), dated as of December 4, 2012 is entered into among the FLORIDA LOCAL GOVERNMENT FINANCE COMMISSION (the "Commission"), a legal entity and a public body corporate and politic created pursuant to Part I of Chapter 163, Florida Statutes (the "Interlocal Act"), and OKALOOSA COUNTY, FLORIDA (the "Public Agency"), a duly constituted political subdivision of the State of Florida (the "State") and JPMORGAN CHASE BANK, N.A. (the "Bank"), a national banking association. WHEREAS, the Commission was created for the benefit of duly constituted counties, municipalities and other public agencies as described in the Interlocal Act (collectively, the "Public Agencies"), desiring to participate in a pooled commercial paper loan program in order to obtain cost effective, short-term financing for acquiring, constructing and equipping capital improvements and for other governmental needs; and WHEREAS, the Commission has determined that there is substantial need within the State for a pooled commercial paper loan program (the "Program") which will allow loans to be made to Public Agencies in the State in order to provide funds to such Public Agencies to enable them to acquire, construct and equip capital improvements and to finance other governmental needs; and WHEREAS, the Commission is authorized under the Interlocal Act to issue its obligations to make loans in order to provide funds for such purposes; and WHEREAS, the Commission has determined that the public interest will best be served and that the purposes of the Interlocal Act can be satisfied by the Commission's issuance of commercial paper notes in order to make loans in order to provide funds to Public Agencies desiring to finance the cost of acquiring, constructing and equipping capital improvements and, to the extent permitted by the terms of this Loan Agreement, to finance other governmental needs; and WHEREAS, in furtherance of the foregoing, the Commission shall issue, from time to time, commercial paper notes to be known as "Florida Local Government Finance Commission Pooled Commercial Paper Notes" (the "Notes"), pursuant to the terms of a certain Indenture of Trust, dated as of June 6, 2011 between the Commission and the Trustee (as defined herein) (such Trust Indenture, as amended or supplemented, is referred to herein as the "Indenture"); and WHEREAS, such Notes may be issued under the Indenture as two separate series and shall be further designated as "Series A-1 (Governmental Issue)" and "Series B-1 (AMT Issue)"; and 4  WHEREAS, pursuant to the authority of the Interlocal Act, the Commission desires to loan, from time to time, to the Public Agency such amounts as shall be authorized herein in order to enable the Public Agency to finance various capital improvements and other governmental needs and to pay a pro rata share of the costs of issuing the aforementioned Notes, and the Public Agency desires to borrow various amounts from the Commission subject to the terms and conditions of and for the purposes set forth in this Loan Agreement; and WHEREAS, the Bank desires to provide its Credit Facility for credit and liquidity support for the Program; and WHEREAS, the Public Agency is authorized under and pursuant to Chapter 125, Florida Statutes, the Interlocal Act and other applicable provisions of law to enter into this Loan Agreement for the purposes set forth herein; and WHEREAS, the Commission and the Public Agency have determined that the provision of funds by the Commission to the Public Agency pursuant to the terms of this Loan Agreement and the Indenture will assist in the development and maintenance of the public welfare of the residents of the State and the areas served by the Public Agency, and shall serve a public purpose by improving the health and living conditions, and providing governmental services, facilities and programs and will promote the most efficient and economical development of such services, facilities and programs; NOW, THEREFORE, for and in consideration of the premises hereinafter contained, the parties hereto agree as follows: 5  ARTICLE I DEFINITIONS SECTION 1.01. DEFINITIONS. Unless the context or use indicates another meaning or intent, the following words and terms as used in this Loan Agreement shall have the following