Okaloosa County BOCC — April 1, 2014 — Bond Trust Indenture.2BL — reading text

NGN Draft No.2 3/26/2014 019.14 BOND TRUST INDENTURE BETWEEN OKALOOSA COUNTY, FLORIDA, as Issuer AND __________________________, as Bond Trustee DATED AS OF APRIL 1, 2014 $___________ Okaloosa County, Florida Utilities System Revenue Bonds, Series 2014 (Auburn Water System, Inc. Project)  TABLE OF CONTENTS Page ARTICLE I DEFINITIONS SECTION 1.1. DEFINITIONS ............................................................................................4 ARTICLE II THE BONDS SECTION 2.1. AUTHORIZED AMOUNT OF BONDS ..................................................14 SECTION 2.2. ISSUANCE OF SERIES 2014 BONDS; ADDITIONAL BONDS ..........14 SECTION 2.3. EXECUTION; LIMITED OBLIGATION; NO LIABILITY OF STATE .................................................................................................16 SECTION 2.4. AUTHENTICATION................................................................................16 SECTION 2.5. FORM OF BONDS AND TEMPORARY BONDS .................................17 SECTION 2.6. DELIVERY OF SERIES 2014 BONDS ...................................................17 SECTION 2.7. MUTILATED, LOST, STOLEN OR DESTROYED BONDS ................18 SECTION 2.8. TRANSFER AND EXCHANGE OF BONDS; PERSONS TREATED AS OWNERS ...................................................................18 SECTION 2.9. BOOK-ENTRY ONLY SYSTEM FOR THE BONDS ............................19 SECTION 2.10. SUCCESSOR SECURITIES DEPOSITORY; TRANSFERS OUTSIDE BOOK-ENTRY ONLY SYSTEM ....................................20 SECTION 2.11. PAYMENTS AND NOTICES TO CEDE & CO .....................................20 ARTICLE III APPLICATION OF BOND PROCEEDS AND REQUIRED FUND DEPOSITS SECTION 3.1. EXPENSE FUND......................................................................................21 SECTION 3.2. PROJECT FUND ......................................................................................21 SECTION 3.3. DEPOSIT OF BOND PROCEEDS...........................................................22 ARTICLE IV REVENUES AND FUNDS SECTION 4.1. SOURCE OF PAYMENT OF BONDS ....................................................24 SECTION 4.2. BOND SINKING FUND ..........................................................................24 SECTION 4.3. REDEMPTION FUND .............................................................................24 SECTION 4.4. INVESTMENT OF FUNDS; INCOME ...................................................24 SECTION 4.5. TRUST FUNDS ........................................................................................25 SECTION 4.6. EXCLUDED FUNDS; TRANSFERS TO REBATE FUND....................25 i  ARTICLE V REDEMPTION OF BONDS SECTION 5.1. MANDATORY SINKING FUND REDEMPTIONS WITHOUT PREMIUM...........................................................................................26 SECTION 5.2. OPTIONAL REDEMPTION ....................................................................27 SECTION 5.3. PURCHASE IN LIEU OF REDEMPTION ..............................................28 SECTION 5.4. NOTICE OF REDEMPTION; CONDITIONAL NOTICE ......................28 SECTION 5.5. METHOD OF SELECTING BONDS IN CASE OF PARTIAL REDEMPTION....................................................................................29 SECTION 5.6. BONDS DUE AND PAYABLE ON REDEMPTION DATE; INTEREST CEASES TO ACCRUE ...................................................29 SECTION 5.7. CANCELLATION ....................................................................................29 ARTICLE VI GENERAL COVENANTS SECTION 6.1. PAYMENT OF PRINCIPAL, PREMIUM, IF ANY, AND INTEREST...........................................................................................30 SECTION 6.2. PERFORMANCE OF COVENANTS; LEGAL AUTHORIZATION.............................................................................30 SECTION 6.3. OWNERSHIP; INSTRUMENTS OF FURTHER ASSURANCE ...........30 SECTION 6.4. RECORDING AND FILING ....................................................................31 SECTION 6.5. BOOKS AND RECORDS ........................................................................31 SECTION 6.6. LIST OF BONDHOLDERS......................................................................31 SECTION 6.7. RIGHTS UNDER THE LOAN AGREEMENT .......................................31 SECTION 6.8. DESIGNATION OF ADDITIONAL PAYING AGENTS .......................31 SECTION 6.9. ARBITRAGE; COMPLIANCE WITH TAX EXEMPTION AGREEMENT.....................................................................................31 ARTICLE VII EVENTS OF DEFAULT AND REMEDIES SECTION 7.1. EVENTS OF DEFAULT ..........................................................................33 SECTION 7.2. ACCELERATION ....................................................................................34 SECTION 7.3. REMEDIES; RIGHTS OF BONDHOLDERS..........................................35 SECTION 7.4. DIRECTION OF PROCEEDINGS BY HOLDERS.................................35 SECTION 7.5. APPOINTMENT OF RECEIVERS ..........................................................36 SECTION 7.6. APPLICATION OF MONEYS.................................................................36 SECTION 7.7. REMEDIES VESTED IN BOND TRUSTEE...........................................37 SECTION 7.8. RIGHTS AND REMEDIES OF BONDHOLDERS .................................37 SECTION 7.9. TERMINATION OF PROCEEDINGS.....................................................38 SECTION 7.10. WAIVER OF EVENTS OF DEFAULT ...................................................38 SECTION 7.11. BORROWER'S RIGHTS OF POSSESSION AND USE OF PROPERTY.........................................................................................39 ii SECTION 7.12. WAIVER OF REDEMPTION; EFFECT OF SALE OF TRUST ESTATE...............................................................................................39 SECTION 7.13. NOTICE OF DEFAULT. ..........................................................................39 ARTICLE VIII THE BOND TRUSTEE SECTION 8.1. ACCEPTANCE OF THE TRUSTS ..........................................................40 SECTION 8.2. FEES, CHARGES AND EXPENSES OF BOND TRUSTEE AND ANY ADDITIONAL PAYING AGENT ............................................42 SECTION 8.3. NOTICE TO THE ISSUER AND BONDHOLDERS IF DEFAULT OCCURS ..........................................................................43 SECTION 8.4. INTERVENTION BY BOND TRUSTEE ................................................43 SECTION 8.5. SUCCESSOR BOND TRUSTEE .............................................................43 SECTION 8.6. BOND TRUSTEE REQUIRED; ELIGIBILITY ......................................43 SECTION 8.7. RESIGNATION BY THE BOND TRUSTEE ..........................................44 SECTION 8.8. REMOVAL OF THE BOND TRUSTEE .................................................44 SECTION 8.9. APPOINTMENT OF SUCCESSOR BOND TRUSTEE BY THE BONDHOLDERS; TEMPORARY BOND TRUSTEE ......................44 SECTION 8.10. CONCERNING ANY SUCCESSOR BOND TRUSTEES ......................45 SECTION 8.11. BOND TRUSTEE PROTECTED IN RELYING UPON RESOLUTION, ETC...........................................................................45 SECTION 8.12. SUCCESSOR BOND TRUSTEE AS BOND TRUSTEE OF FUNDS, PAYING AGENT AND BOND REGISTRAR ...................45 SECTION 8.13. PAYING AGENTS; APPOINTMENT AND ACCEPTANCE OF DUTIES; REMOVAL .........................................................................46 ARTICLE IX SUPPLEMENTAL INDENTURES SECTION 9.1. SUPPLEMENTAL INDENTURES NOT REQUIRING CONSENT OF BONDHOLDERS ......................................................47 SECTION 9.2. SUPPLEMENTAL INDENTURES REQUIRING CONSENT OF BONDHOLDERS................................................................................48 ARTICLE X AMENDMENTS, ETC. TO BORROWER'S DOCUMENTS SECTION 10.1. AMENDMENTS TO THE BORROWER'S DOCUMENTS NOT REQUIRING CONSENT ....................................................................50 SECTION 10.2. AMENDMENTS TO THE BORROWER'S DOCUMENTS REQUIRING CONSENT OF BONDHOLDERS ...............................50 iii  ARTICLE XI SATISFACTION OF THIS BOND INDENTURE SECTION 11.1. DEFEASANCE .........................................................................................52 SECTION 11.2. LIABILITY OF ISSUER NOT DISCHARGED ......................................53 SECTION 11.3. SELECTION OF DEFEASED BONDS ...................................................53 SECTION 11.4. WHEN REFUNDING IS NOT PERMITTED..........................................53 ARTICLE XII MANNER OF EVIDENCING OWNERSHIP OF BONDS SECTION 12.1. PROOF OF OWNERSHIP........................................................................54 ARTICLE XIII MISCELLANEOUS SECTION 13.1. LIMITATION OF RIGHTS ......................................................................55 SECTION 13.2. UNCLAIMED MONEYS .........................................................................55 SECTION 13.3. SEVERABILITY ......................................................................................55 SECTION 13.4. NOTICES ..................................................................................................56 SECTION 13.5. ADDITIONAL NOTICES TO RATING AGENCIES .............................56 SECTION 13.6. COUNTERPARTS....................................................................................57 SECTION 13.7. APPLICABLE LAW.................................................................................57 SECTION 13.8. IMMUNITY OF OFFICERS, EMPLOYEES AND MEMBERS OF ISSUER..........................................................................................57 EXHIBIT A FORM OF BOND EXHIBIT B FORM OF REQUISITION FOR EXPENSE FUND AND PROJECT FUND iv  BOND TRUST INDENTURE THIS BOND TRUST INDENTURE ("Bond Indenture") is dated as of April 1, 2014 and is