Okaloosa County BOCC — August 19, 2014 — Note Resolution — reading text

NGN Draft No.2 8/11/14 019-19 OKALOOSA COUNTY, FLORIDA SALES TAX BOND ANTICIPATION NOTE RESOLUTION ADOPTED AUGUST 19, 2014  TABLE OF CONTENTS PAGE ARTICLE I GENERAL SECTION 1.01. DEFINITIONS..............................................................................................1 SECTION 1.02. AUTHORITY FOR RESOLUTION ............................................................5 SECTION 1.03. RESOLUTION TO CONSTITUTE CONTRACT.......................................5 SECTION 1.04. FINDINGS....................................................................................................5 SECTION 1.05. AUTHORIZATION OF PROJECTS ...........................................................5 ARTICLE II AUTHORIZATION, TERMS, EXECUTION AND REGISTRATION OF SERIES 2014 NOTE SECTION 2.01. AUTHORIZATION AND DESCRIPTION OF SERIES 2014 NOTE; THE SERIES 2014 NOTE............................................................................6 SECTION 2.02. APPLICATION OF SERIES 2014 NOTE PROCEEDS..............................6 SECTION 2.03. EXECUTION OF SERIES 2014 NOTE ......................................................7 SECTION 2.04. SERIES 2014 NOTE MUTILATED, DESTROYED, STOLEN OR LOST ............................................................................................................7 SECTION 2.05. INTERCHANGEABILITY, NEGOTIABILITY AND TRANSFER ..........7 SECTION 2.06. ADJUSTMENTS TO INTEREST RATE ....................................................8 SECTION 2.07. NON-USAGE FEE .......................................................................................9 SECTION 2.08. FORM OF SERIES 2014 NOTE ..................................................................9 ARTICLE III REDEMPTION OF NOTE SECTION 3.01. NOTICE OF REDEMPTION.....................................................................15 SECTION 3.02. PAYMENT OF REDEEMED NOTE.........................................................15 SECTION 3.03. PERMITTED AND REQUIRED REDEMPTIONS OF THE SERIES 2014 NOTE.................................................................................................15 ARTICLE IV SECURITY, SPECIAL FUNDS AND APPLICATION THEREOF SECTION 4.01. SERIES 2014 NOTE NOT TO BE INDEBTEDNESS OF COUNTY ......16 SECTION 4.02. SECURITY FOR SERIES 2014 NOTE .....................................................16 SECTION 4.03. NOTE CONSTRUCTION FUND ..............................................................16 SECTION 4.04. DEBT SERVICE FUND ............................................................................17 SECTION 4.05. APPLICATION OF SALES TAX REVENUES........................................17 SECTION 4.06. ARBITRAGE REBATE .............................................................................17 SECTION 4.07. INVESTMENTS.........................................................................................18 SECTION 4.08. SEPARATE ACCOUNTS..........................................................................18 SECTION 4.09. PAYMENT COVENANT ..........................................................................18 SECTION 4.10 SPECIAL COVENANT .............................................................................18 ARTICLE V COVENANTS OF THE COUNTY SECTION 5.01. BOOKS AND RECORDS..........................................................................20 SECTION 5.02. ISSUANCE OF ADDITIONAL INDEBTEDNESS ..................................20 SECTION 5.03 ANNUAL AUDIT ......................................................................................20 SECTION 5.04. NO IMPAIRMENT ....................................................................................20 SECTION 5.05. FEDERAL INCOME TAX COVENANTS ...............................................20 SECTION 5.06. COLLECTION OF SALES TAX REVENUES.........................................21 SECTION 5.07. OTHER MONEYS .....................................................................................21 SECTION 5.08. ADDITIONAL COVENANTS WITH RESPECT TO THE SERIES 2014 NOTE.................................................................................................21 ARTICLE VI DEFAULTS AND REMEDIES SECTION 6.01. EVENTS OF DEFAULT............................................................................22 SECTION 6.02. REMEDIES ................................................................................................22 SECTION 6.03. REMEDIES CUMULATIVE .....................................................................23 SECTION 6.04. WAIVER OF DEFAULT ...........................................................................23 ARTICLE VII SUPPLEMENTAL RESOLUTIONS SECTION 7.01. SUPPLEMENTAL RESOLUTIONS .........................................................24 ARTICLE VIII MISCELLANEOUS SECTION 8.01. DEFEASANCE ..........................................................................................25 SECTION 8.02. SALE OF SERIES 2014 NOTE .................................................................25 SECTION 8.03. NO ADVISORY OR FIDUCIARY RELATIONSHIP ..............................26 SECTION 8.04. VALIDATION AUTHORIZED.................................................................26 SECTION 8.05. APPOINTMENT OF PAYMENT AGENT AND REGISTRAR ..............26 SECTION 8.06. SEVERABILITY OF INVALID PROVISIONS .......................................26 SECTION 8.07. REPEAL OF INCONSISTENT RESOLUTIONS .....................................27 SECTION 8.08. EFFECTIVE DATE....................................................................................27 EXHIBIT A -- THE PROJECTS EXHIBIT B -- FORM OF DRAW CERTIFICATE  A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF OKALOOSA COUNTY, FLORIDA, AUTHORIZING THE ISSUANCE BY THE COUNTY OF A $_________ OKALOOSA COUNTY, FLORIDA SALES TAX BOND ANTICIPATION NOTE, SERIES 2014, IN ORDER TO FINANCE AND REFINANCE CERTAIN CAPITAL COSTS ASSOCIATED WITH COUNTY FACILITIES; PLEDGING THE PROCEEDS OF THE COUNTY'S SALES TAX REVENUE BONDS, SERIES 2014 AND THE MONEYS RECEIVED BY THE COUNTY FROM THE COUNTY'S HALF-CENT SALES TAX REVENUES AS SECURITY THEREFOR; PROVIDING FOR THE RIGHTS OF THE HOLDERS OF SAID NOTE; AWARDING THE SALE OF SAID NOTE; AND PROVIDING FOR AN EFFECTIVE DATE FOR THIS RESOLUTION. BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF OKALOOSA COUNTY, FLORIDA, AS FOLLOWS: ARTICLE I GENERAL SECTION 1.01. DEFINITIONS. When used in this Resolution, the following terms shall have the meanings set forth below, unless the context clearly otherwise requires. All capitalized but undefined terms shall have the meanings set forth in the Bond Resolution. "After-Tax Yield" shall mean: (a) the amount received as interest on the Series 2014 Note less (i) any federal income taxes directly or indirectly payable on such interest; and (ii) any federal income tax liability directly or indirectly imposed on the Series 2014 Noteholder as a result of its purchase or ownership of or receipt of interest from such Series 2014 Note (including any tax liability resulting from disallowance or limitation on any deductions, credits or other tax benefits), all on an annualized basis, divided by: (b) the outstanding principal amount held by the Series 2014 Noteholder. Unless the Series 2014 Noteholder shall otherwise determine (as, for example, in the case of an alternative minimum tax), the income is subject to taxation at a rate applicable to the highest bracket of corporate income. If the Series 2014 Noteholder is a member of a consolidated corporate tax filing, determination of the effect on After-Tax Yield shall be made on a consolidated basis unless the Series 2014 Noteholder shall deem a different basis to more accurately reflect the impact of such change in tax treatment. "Bond Resolution" shall mean Resolution No. 09-190 of the Board, adopted December 17, 2009. 1  "Bonds" shall mean those bonds issued pursuant to the Bond Resolution, including the Outstanding Bonds. "Business Day" shall mean, with respect to Interest Periods applicable to the LIBOR Rate, a day on which the Holder is open for business and on which dealings in U.S. dollar deposits are carried on in the London Inter-Bank Market. "Default Rate" shall mean the lesser of 18% per annum or the maximum rate allowed by law. "Determination of Taxability" shall mean the occurrence after the date of issuance of the Series 2014 Note of a final decree or judgment of any Federal court or a final action of the Internal Revenue Service determining that interest paid or payable on all or a portion of the Series 2014 Note is or was includable in the gross income of the Series 2014 Noteholder for Federal income tax purposes; provided, that no such decree, judgment, or action will be considered final for this purpose, however, unless the County has been given written notice and, if it is so desired and is legally allowed, has been afforded the opportunity to contest the same, either directly or in the name of the Series 2014 Noteholder, and until the conclusion of any appellate review, if sought. A Determination of Taxability does not include and is not triggered by a change in law by Congress that causes the interest to be includable under the Series 2014 Noteholder's gross income. Upon the occurrence of a Determination of Taxability the interest rate on the Series 2014 Note shall be adjusted to assure the Series 2014 Noteholder's receipt of the After-Tax Yield. "Event of Default" shall mean any Event of Default specified in Section 6.01 of this Resolution. "Interest Period" shall mean a period of one (1) calendar month, provided that (i) the initial Interest Period shall be less than one month, based on the initial funding date of August 21, 2014, and (ii) no Interest Period shall extend beyond the Maturity Date. "Interest Rate Determination Date" shall mean August 1, 2014 and the first Business Day of each calendar month thereafter. "Interest Rate" means the LIBOR Rate plus 1.30% x 68%. Notwithstanding the foregoing, (i) after a Determination of Taxability the Interest Rate shall be the Taxable Rate, and (ii) after and during the continuance of and Event of Default, the Interest Rate shall be the Default Rate. "LIBOR Rate" shall mean that rate per annum effective on any Interest Rate Determination Date which is equal to the quotient of: (i) the rate per annum equal to the offered rate for deposits in U.S. dollars for a one (1) month period, which rate appears on that page of Reuters reporting service, or such similar service as determined by