Miami-Dade
Legislative Item File Number: 961665 |
File Number: 961665 | File Type: Ordinance | Status: Adopted | ||||||
Version: 0 | Reference: 96-108 | Control: County Commission | ||||||
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Requester: County Manager | Cost: | Final Action: 7/2/1996 | ||||||
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Sunset Provision: No | Effective Date: | Expiration Date: |
Registered Lobbyist: | None Listed |
Legislative History |
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Acting Body | Date | Agenda Item | Action | Sent To | Due Date | Returned | Pass/Fail |
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Board of County Commissioners | 7/2/1996 | 4M | Adopted | P | |||
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Board of County Commissioners | 6/18/1996 | 9H | Adopted on first reading | 7/2/1996 | P | ||
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County Manager | 6/18/1996 | Referred | Planning Environment Consumer Services and Arts Committee | ||||
REPORT: | 6/24/96 COMM. MTG. DATE | ||||||
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County Manager | 6/13/1996 | Assigned | David Morris | 6/13/1996 | 6/13/1996 | ||
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County Manager | 6/13/1996 | Assigned | County Attorney | 6/13/1996 | |||
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Finance and Trust Funds Committee | 6/10/1996 | Forwarded to BCC with a favorable recommendation | Board of County Commissioners | 7/2/1996 | |||
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Legislative Text |
TITLE ORDINANCE AUTHORIZING ISSUANCE IN ONE OR MORE SERIES OF NOT EXCEEDING $70,000,000 PUBLIC SERVICE TAX REVENUE REFUNDING BONDS, SERIES 1996 FOR PURPOSE OF REFUNDING OUTSTANDING DADE COUNTY, FLORIDA SPECIAL OBLIGATION AND REFUNDING BONDS, SERIES 1986; PROVIDING FOR PAYMENT OF BONDS FROM CERTAIN PUBLIC SERVICE TAXES; PROVIDING FOR ESTABLISHMENT OF TERMS, MATURITIES, INTEREST RATES AND OTHER DETAILS OF BONDS BY SUBSEQUENT ORDINANCE OR RESOLUTION; PROVIDING FOR OTHER DOCUMENTATION FOR REFUNDING BY SUBSEQUENT ORDINANCE OR RESOLUTION; MAKING CERTAIN COVENANTS AND AGREEMENTS AND PROVIDING CERTAIN DETAILS IN CONNECTION THEREWITH; PROVIDING FOR EFFECTIVE DATE. BODY WHEREAS, the Board of County Commissioners (the "Board") of Dade County, Florida (the "County"), enacted Ordinance No. 83-67 on July 19, 1983 ("Ordinance No. 83-67"), pursuant to which the County issued the Dade County, Florida Special Obligation and Refunding Bonds, Series 1983A (the "Series 1983 Bonds") to finance certain capital projects, and to refund other obligations of the County; and WHEREAS, pursuant to Ordinance No. 83-67, as supplemented and amended, including, without limitation, by Ordinance No. 86-94, enacted by the Board on December 2, 1986, the County issued the Dade County, Florida Special Obligation and Refunding Bonds, Series 1986 (the "Series 1986 Bonds") to refund the Series 1983 Bonds; and WHEREAS, Ordinance No. 83-67 permits, upon compliance with certain specific conditions, the defeasance of the lien of the Series 1986 Bonds on the revenues and funds pledged to their repayment; and WHEREAS, it is in the best interest of the County to refund all of the outstanding Series 1986 Bonds as more fully set forth in this Ordinance, and to issue its Dade County, Florida, Public Service Tax Revenue Refunding Bonds, Series 1996 (the "Series 1996 Bonds") for said purpose; and WHEREAS, the Board is authorized under the Act to issue bonds for various projects, including the refunding of the Series 1986 Bonds, and the refunding of the Series 1986 Bonds constitutes a valid County purpose; and WHEREAS, it is necessary and in the best interests of the County to provide for the refunding of the Series 1986 Bonds in order to obtain substantial net interest cost savings; and WHEREAS, the Board finds it desirable to authorize the issuance of the Series 996 Bonds as provided in this Ordinance and to make provision for the issuance of other parity Bonds as provided in this Ordinance which is enacted pursuant to Article VIII, Section 1 of the Constitution of the State of Florida, Section 125.01, Florida Statutes, Section 159.11, Florida Statutes, Chapter 166, Florida Statutes, the Metropolitan Dade County Home Rule Amendment and Charter, as amended (the "Charter"), and other applicable provisions of law; NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF DADE COUNTY' FLORIDA: ARTICLE I INCORPORATION OF RECITALS; DEFINITIONS Section 101. Incorporation of Recitals. The Board hereby finds and determines, and does hereby incorporate as part of this Ordinance, the matters set forth in the foregoing recitals. Section 102. Meaning of Words and Terms. As used in this Ordinance, unless the context otherwise requires: "Act" means, collectively, Article VIII, Sections 1 and 6(f) of the Constitution of the State of Florida, Section 125.01, Florida Statutes, Section 159.11, Florida Statutes, Chapter 166, Florida Statutes, the Charter and other applicable provisions of law. "Additional Bonds" means additional obligations issued in compliance with the terms, conditions and limitations contained in Section 208 which shall have a lien, equal as to priority of payment with the Series 1996 Bonds, on the Pledged Funds. "Amortization Requirement" means the funds to be deposited in the Debt Service Fund in a given Bond Year for the payment at maturity or mandatory redemption of a portion of Term Bonds of a designated Series, as established by subsequent resolution of the Board adopted at or before the delivery of such Series of Term Bonds. "Annual Budget" means the budget or budgets, as amended and supplemented from time to time, and adopted in accordance with Section 706 of this Ordinance and the laws of the State of Florida. "Authorized Depositary" means any bank, trust company, national banking association, savings and loan association, savings bank or other banking association selected by the County as a depositary, which is authorized under Florida law to be a depositary of public funds of the County and which has qualified with all applicable state and federal requirements concerning the receipt of County funds. "Board" means the Board of County Commissioners of Dade County, Florida. "Bond Counsel" means nationally recognized legal counsel experienced in matters relating to the validity of, and the exclusion from gross income for federal income tax purposes of interest on obligations of states and their political subdivisions. "Bondholders," "Holders," "Registered Owners" or "Owners" means registered owners (or their authorized representatives) of Bonds. "Bond Insurance Policy" means a municipal bond policy of insurance insuring the payment, when due, of the principal of and interest on a Series of Bonds. "Bond Insurer" means with respect to any Series of Bonds, the issuer of a Bond Insurance Policy. "Bond Obligation" means, as of the date of computation, the sum of: (i) the principal amount of all Current Interest Bonds then Outstanding and (ii) the Compounded Amount on all Capital Appreciation Bonds then Outstanding. "Bond Registrar" means such banks or trust companies as shall be designated by the Board or appointed by the County Manager as authorized by subsequent resolution to serve as Bond Registrar performing such functions as required by this Ordinance. "Bonds" means any bonds issued pursuant to this Ordinance, including the Series 1996 Bonds, any Additional Bonds and any Refunding Bonds. "Bond Service Requirement" means for a given Bond Year the remainder, after subtracting any accrued and capitalized interest for that year that has been deposited into the Debt Service Fund or a separate subaccount in the Construction Fund for that purpose, from the sum of: (A) The amount required to pay the interest coming due on Bonds during that Bond Year, including the accreted interest component of the Compounded Amount of Capital Appreciation Bonds coming due during that Bond Year; (B) The amount required to pay the principal of Serial Bonds and the principal of Term Bonds, including the principal component of the Compounded Amounts of Capital Appreciation Bonds, maturing in that Bond Year that are not included in the Amortization Requirements for such Term Bonds; and (C) The Amortization Requirement for all Series of Term Bonds for that Bond Year. For purposes of calculating the Bond Service Requirement, the interest rate with respect to Bonds bearing interest at a Variable Rate and fixed rate Bonds with respect to which a Hedge Agreement has been entered into shall be determined as provided in the definition of "Variable Rate. " "Bond Year" means the annual period beginning on the first day of October of each year and ending on the last day of September of the following year; provided that when such term is used to describe the period during which deposits are to be made pursuant to Section 504 of this Ordinance to amortize the principal and interest on the Bonds maturing or becoming subject to redemption, the principal and interest maturing or becoming subject to redemption on the first day of the month immediately succeeding any Bond Year shall be deemed to mature or become subject to redemption on the last day of the preceding Bond Year. "Book-Entry Bonds" and "Bonds in Book-Entry Form" means Bonds which are subject to a Book-Entry System. "Book-Entry System" or "Book-Entry-Only-System" means a system under which either (a) bond certificates are not issued and the ownership of bonds is reflected solely by the registration books maintained by the Bond Registrar, or (b) physical certificates in fully registered form are issued to a securities depository or to its nominee as Registered Owner, with the certificated bonds held by and "immobilized" in the custody of such securities depository, and under which records maintained by or on behalf of the securities depository, rather than the Bond Registrar, constitute the written record that identifies the ownership and transfer of the beneficial interests in those bonds. "Capital Appreciation Bonds" means Bonds that bear interest, compounded semiannually, that is payable only at maturity or upon redemption prior to maturity in amounts determined by reference to the Compounded Amounts. "Chairperson" means the Chairperson of the Board, or in the absence of the Chairperson, the Vice Chairperson or the officer or officers succeeding to the functions of the Chairperson. "Charter" means the Metropolitan Dade County Home Rule Amendment and Charter, as amended. "Clerk" means the Clerk or any Deputy Clerk of the Board or the officer or officers succeeding to the principal functions of the Clerk. "Code" means the Internal Revenue Code of 1986, as amended, or any corresponding provisions of any future laws of the United States of America relating to federal income taxation, and except as otherwise provided in or required by the context of this Ordinance, includes interpretations contained or set forth in the applicable regulations of the Department of the Treasury (including applicable final regulations and temporary regulations), including applicable rulings of the Internal Revenue Service (including published Revenue Rulings and private letter rulings) and applicable court decisions. "Compounded Amounts" means the principal amount of the Capital Appreciation Bonds plus the amount of interest that has accreted on such Capital Appreciation Bonds, compounded semiannually, to the date of calculation, determined by reference to accretion tables contained in each such Capital Appreciation Bond or an offering circular with respect to such Capital Appreciation Bond. The Compounded Amounts for such Capital Appreciation Bonds as of any date not stated in such tables shall be calculated by adding to the Compounded Amount for such Bonds as of the date stated in such tables immediately preceding the date of computation a portion of the difference between the Compounded Amount for such preceding date and the Compounded Amount for such Capital Appreciation Bonds as of the date shown on such tables immediately succeeding the date of calculation, apportioned on the assumption that interest accretes during any period in equal daily amounts on the basis of a year of twelve 30-day months. "Construction Fund" means the Construction Fund established pursuant to Section 401 of this Ordinance. "Costs of the Project" means those costs described in Section 403 of this Ordinance. "Counterparty" means a party, other than the County, to a Hedge Agreement. "County" means Dade County, Florida, a political subdivision of the State of Florida. "County Code" means the Code of Metropolitan Dade County, Florida. "County Manager" means the County Manager of the County, any Assistant County Manager or a designee or the officer or officers succeeding to the functions of the County Manager. "Credit Facility" means a line of credit, letter of credit or similar credit enhancement device or arrangement providing support for the payment of the principal of and interest on one or more Series of Bonds. "Current Interest Bonds" means Bonds that bear interest which is payable annually, semiannually or monthly, or such more frequent interval as the County may determine. "Debt Service Fund" means the fund by that name established by Section 502 of this Ordinance. "Designated Revenues" means the payments received from the levy of the Public Service Tax by the County. "Escrow Agent" means a bank or trust company, either within or without the State of Florida, as shall be designated by the Board or appointed by the County Manager as authorized by subsequent resolution to act as Escrow Agent, performing such functions as required by this Ordinance or the Escrow Deposit Agreement. "Escrow Deposit Agreement" means the Escrow Deposit Agreement, by and between the County and the Escrow Agent pursuant to which funds will be held for the payment of the Series 1986 Bonds. "Finance Director" means the Finance Director of the County, or his successor or designee. "Fiscal Year" means, initially, the period commencing on October 1 of each year and ending on the next succeeding September 30, or such other consecutive 12-month period as may hereafter be designated as the fiscal year of the County pursuant to general law. "Governmental Obligations" means: (i) direct noncallable obligations of, or obligations the payment, when due, of the principal of and interest on which is unconditionally guaranteed by, the United States of America; and (ii) stripped interest obligations on bonds, notes, debentures and similar obligations issued by Resolution Funding Corporation. "Hedge Agreement" means an interest rate exchange agreement, an Interest Swap Agreement or other financial product which is used by the County as a hedging device with respect to its obligation to pay debt service on any of the Bonds, entered into between the County and a Counterparty; provided that such Counterparty shall be an entity whose long-term debt obligations, or whose payment obligations under the Hedge Agreement are guaranteed by an entity whose senior long-term debt obligations, are rated (on the date the Hedge Agreement is entered into) by Moody's and S & P or their respective successors in a rating category not less than "A" by Moody's and "A" by S & P; and further provided that such arrangement shall be specifically designated in a certificate of the Finance Director as a "Hedge Agreement" for purposes of this Ordinance; and provided further that at the time of entering into such Hedge Agreement the County shall have obtained written evidence that entering into such Hedge Agreement will not, in and of itself, result in a withdrawal or reduction of any rating assigned to the Bonds by a Rating Agency. "Hedge Charges" means charges payable by the County to a Counterparty upon the execution, renewal or termination of any Hedge Agreement and any periodic fee payable by the County to keep such Hedge Agreement in effect and other required payments, exclusive of Hedge Obligations. "Hedge Obligations" means (i) net payments required to be made by the County under a Hedge Agreement from time to time as a result of fluctuation in hedged interest rates, or fluctuation in the value of any index of payment and (ii) termination charges payable by the County with respect to a Hedge Agreement, provided that with respect to any such termination charge, such termination charge may be considered as a Hedge Obligation (and not a Hedge Charge) if, on or before the date of entering into such Hedge Agreement, the County shall have obtained written evidence from each Rating Agency that such Hedge Agreement and treatment of such termination charges as a Hedge Obligation under this Ordinance will not, in and of itself, result in the withdrawal or reduction of the rating(s) then applicable to the Bonds. "Hedge Receipts" means net payments received by the County from a Counterparty under a Hedge Agreement. "Interest Swap Agreement" means an agreement between the County and a Counterparty under which the County is obligated to make periodic payments on a "notional amount" to the Counterparty at a fixed rate of interest and the Counterparty is obligated to make periodic payments to the County on such "notional amount" at a variable rate of interest, or vice versa, and under which the amounts so payable by the County and such Counterparty on any date are netted against each other with the party owing the larger amount making a net payment to the other party. "Liquidity Facility" means a line of credit, letter of credit or similar enhancement device or arrangement creating a source to be drawn upon by the County to pay the purchase price of one or more Series of Bonds. "Maximum Bond Service Requirement" means, as of any particular date of calculation, the largest Bond Service Requirement for any remaining Bond Year, except that with respect to any Bonds for which Amortization Requirements have been established, the amount of principal coming due on the final maturity date with respect to such Bonds shall be reduced by the aggregate principal amount or Compounded Amounts, as the case may be, of such Bonds that are to be redeemed or paid from Amortization Requirements to be made in prior Bond Years. For purposes of this Ordinance, the Maximum Bond Service Requirement shall be calculated at least annually as of the first day of each Bond Year and as of the date of issuance of any Series of Bonds. "Moody's" means Moody's Investors Service, Inc., and its successors. "Outstanding" or "Bonds Outstanding" means all Bonds which have been issued pursuant to this Ordinance except: (a) Bonds cancelled after purchase in the open market or because of payment at or redemption prior to maturity; (b) Bonds for the payment or redemption of which pursuant to Article X of this Ordinance cash funds or Governmental Obligations or any combination of them shall have been previously irrevocably set aside in a special account with the Paying Agent or an Authorized Depositary acting as an escrow agent (whether upon or prior to the maturity or redemption date of any such Bonds) in an amount which, together with earnings on such Governmental Obligations, will be sufficient to pay the principal of, redemption premiums, if any, and interest on such Bonds at maturity or upon their earlier redemption; and (c) Bonds which are deemed paid pursuant to Section 304 or in lieu of which other Bonds have been issued under Section 206. "Paying Agent" means any Authorized Depositary designated by the Board or appointed by the County Manager as authorized by subsequent resolution to serve as a Paying Agent performing such functions as are required by this Ordinance. All Paying Agents shall have a combined capital, surplus and undivided profits of at least $100,000,000. "Permitted Investments" means, to the extent permitted by law, (i) Governmental Obligations; (ii) bonds, debentures or notes issued by any of the following Federal agencies: Banks for Cooperatives, Federal Intermediate Credit Banks, Federal Home Loan Banks, Export-Import Bank of the United States, Government National Mortgage Association, Federal Land Banks, or the Federal National Mortgage Association (including participation certificates issued by such Association), (iii) all other obligations issued or unconditionally guaranteed as to principal and interest by an agency or person controlled or supervised by and acting as an instrumentality of the United States Government pursuant to authority granted by the Congress, (iv) general obligations of any state of the United States (other than obligations rated lower than the three highest grades by at least two Rating Agencies, including any Rating Agencies then rating Bonds Outstanding), (v) repurchase agreements with any bank or trust company organized under the laws of any state of the United States of America or any national banking association or government bond dealer reporting to, trading with, and recognized as a primary dealer by the Federal Reserve Bank of New York, which agreement is fully secured by Governmental Obligations delivered to another bank or trust company organized under the laws of any state of the United States of America or any national banking association, as custodian, (vi) certificates of deposit or similar arrangements with any Federal or State of Florida bank, trust company or savings and loan association which is a member of the Federal Deposit Insurance Corporation, (vii) investment agreements or contracts which are rated or are issued or guaranteed by an entity whose long-term unsecured obligations are rated in one of the two highest rating categories by both Moody's and S & P or their respective successors, and which are not required to be registered under the Securities Act of 1933 but may be so registered, whereby under each such investment agreement or contract the party is absolutely and unconditionally obligated to repay the moneys invested by the County and interest thereon at a guaranteed rate, without any right of recoupment, counterclaim or set off; provided, however, that such party may have the right to assign its obligations under any such agreements or contracts to any other entity if the investment agreements or contracts shall continue to be rated in one of the two highest rating categories by both Moody's and S & P or their respective successors and if such agreements or contracts shall not be registered, the agreements or contracts shall not be required to be registered under the Securities Act of 1933 by reason of such assignment; and (viii) any other investment which is a permitted investment for public funds under County ordinance or rule approved by each Rating Agency. "Pledged Funds" means the Designated Revenues and all funds held in trust by the County under this Ordinance for the benefit of the Bondholders, and all earnings and investment income derived from the investment of such funds, but in no event including moneys held in the Rebate Fund. "Project" means any capital project or projects authorized by subsequent ordinance or resolution to be acquired, constructed or repaired with proceeds of Additional Bonds. "Public Service Tax" means the excise tax levied by the County upon the purchase in the unincorporated areas of Dade County, Florida of electricity, metered or bottled gas (natural liquified petroleum gas or manufactured), coal, fuel oil, water service and telecommunications service pursuant to Article VIII, Section 6(f), Constitution of the State of Florida, Section 166.231, Florida Statutes and as provided in Article IV of Chapter 29 of the County Code. "Rating Agency" means any nationally recognized securities rating service that is providing a rating for any Series of Bonds Outstanding. "Rebate Amount" means the excess of the future value, as of a computation date, of all receipts on non-purpose investments (as defined in Section 1.148-3 of the Income Tax Regulations) over the future value, as of that date, of all payments on non-purpose investments, all as provided by regulations under the Code implementing Section 148 thereof. "Rebate Fund" means the Rebate Fund established pursuant to Section 502 of this Ordinance. "Refunding Bonds" means Bonds issued pursuant to the provisions of Section 209 to refund Outstanding Bonds. "Reserve Fund" means the fund by that name established pursuant to Section 502 of this Ordinance. "Reserve Fund Facility" means bond insurance, a surety bond, a letter of credit or other credit facility used in lieu of a cash deposit in the Reserve Fund and meeting the terms and conditions of Section 504(2) hereof. "Reserve Fund Facility Provider" means a reputable and nationally recognized bond insurance provider or a bank or other financial institution providing a Reserve Fund Facility, whose bond insurance policies insuring, or whose letters of credit, surety bonds or other credit facilities securing, the payment, when due, of the principal of and interest on bond issues by public entities results in such issues (as of the date of issuance of the Series of Bonds for which the Reserve Fund Facility is to be utilized) being rated, in the case of a bond insurance provider, in the highest rating category by at least one Rating Agency, including all Rating Agencies then rating any Outstanding Bonds, and in the case of a bank or other financial institution, in one of the two highest rating categories by a nationally recognized securities rating agency. "Reserve Requirement" means the amount of money, if any, or available amount of Reserve Fund Facility or Reserve Fund Facilities, if any, as provided for by subsequent resolution adopted prior to the issuance of the Series 1996 Bonds to be maintained in the Reserve Fund. "Revenue Fund" means the fund by that name established by Section 502 of this Ordinance. "S & P" means Standard & Poor's, a division of McGraw Hill Companies, and its successors. "Serial Bonds" means Bonds of a Series (other than Term Bonds) which mature in annual or semiannual installments. "Series" means any portion of the Bonds of an issue authenticated and delivered in a single transaction, payable from an identical source of revenue and identified pursuant to the supplemental ordinance or resolution authorizing such Bonds as a separate Series of Bonds, regardless of variations in maturity, interest rate, Amortization Requirements or other provisions, and any Bonds thereafter authenticated and delivered in lieu of or in substitution of a Series of Bonds issued pursuant to this Ordinance. "Series 1986 Bonds" means the outstanding Dade County, Florida Special Obligation and Refunding Bonds, Series 1986. "Series 1996 Bonds" means the Dade County, Florida Public Service Tax Revenue Refunding Bonds, Series 1996, authorized in this Ordinance to be issued in an aggregate principal amount of not exceeding $70,000,000. "Taxable Bonds" means Bonds the interest on which is not intended at the time of their issuance to be excluded from gross income for federal income tax purposes. "Term Bonds" means Bonds of a Series for which Debt Service Fund Deposits are established, all of which mature on one date and which are subject to mandatory redemption by operation of the Amortization Requirement. "Variable Rate" means, when used with respect to any Bonds or Hedge Obligation, Bonds or H Hedge Obligations having (or determined by reference to) an interest rate which is subject to future change so that at the date any calculation of interest thereon is required to be made under this Ordinance or under any ordinance or resolution authorizing a Series of Bonds, the interest payable at any future time or for any interest period (which is relevant to such calculation) is not known. For the following purposes, interest on Variable Rate Bonds shall be calculated as follows: If, as of the date of any calculation, any Outstanding Bond is a Variable Rate Bond, or if any Additional Bond or Refunding Bond to be issued is a Variable Rate Bond, the following rules shall apply: (i) The rate of interest on any outstanding Variable Rate Bond shall be deemed to be (A) if no Hedge Agreement relating to such Bond shall be in effect, the mean average interest rate borne by such Bond during the preceding twelve (12) months (or such shorter period as such Bond has been Outstanding), or (B) if a Hedge Agreement relating to such Bond is in effect for any period during such Fiscal Year, the interest rate determined by taking into account the payments expected to be made or expected to be received by the County under such Hedge Agreement (other than Hedge Charges) shall be used for such period, such that if the Bonds and the Hedge Agreement taken together result in a net fixed rate payable by the County for such period, such net fixed rate shall be deemed to be the rate of interest on such Bonds for purposes hereof, or (C) if two Variable Rate Bonds taken together result in a net fixed rate payable by the County, such net fixed rate shall be deemed to be the interest rate for such Bonds for the purpose of this Ordinance. If a Hedge Agreement is in effect and the County's Hedge Obligation is a Variable Rate, then such rate shall be deemed to be the Assumed Interest Rate set forth in subparagraph (iii) below. (ii) For purposes of determining whether Additional Bonds or Refunding Bonds may be issued under Sections 208 and 209 of this Ordinance, as applicable, the rate of interest on any then outstanding Variable Rate Bonds shall be determined as set forth in (i) above. (iii) For purposes of determining whether Additional Bonds or Refunding Bonds may be issued, the interest rate on the proposed Variable Rate Bond shall be deemed to be the "Assumed Interest Rate" as defined below; or if a Hedge Agreement is in effect the interest rate shall be as set forth in (i) B above. If a Hedge Agreement is in effect and the County's Hedge Obligation is a variable rate, then such rate shall be deemed to be the Assumed Interest Rate. As used in this paragraph the "Assumed Interest Rate" shall be deemed to be the greater of (A) the sum of the average of the actual interest rates on seven day obligations for the immediately preceding 52 weeks (or if not available for the 52 week period, then for the period for which available), as shown by the Public Securities Association Municipal Swap Index, published by Thompson Financial Services (or if such index is not published, a like 7 day index for high quality variable rate demand obligations selected by the County) for such period, plus 50 basis points, or (B) if the Variable Rate is determined by reference to an index or formula based on an index, the average of the interest rate which would have been applicable to such Variable Rate Bonds pursuant to the index or formula specified for determination on the interest on such Variable Rate Bonds during the immediately preceding 52 weeks (or if not available for such 52 week period, for the period for which available). Section 103. Gender, Number and Miscellaneous Definitions. Words of the masculine gender shall be deemed and construed to include correlative words of the feminine and neuter genders. Words importing singular number shall include the plural number in each case and vice versa, and words importing persons shall include firms, corporations or other entities including governments or governmental bodies. The word "Ordinance" shall include this Ordinance and any ordinance which amends or supplements it. ARTICLE II AUTHORIZATION OF REFUNDING OF THE SERIES 1986 BONDS AND OF ISSUANCE OF SERIES 1996 BONDS; TERMS OF BONDS; ISSUANCE OF ADDITIONAL BONDS AND REFUNDING BONDS; REGISTRATION OF BONDS Section 201. Authorization of Refunding. The refunding of the Series 1986 Bonds with proceeds of the Series 1996 Bonds and all fees for fiscal agents, escrow agents, underwriters and financial advisors, costs of bond insurance, if any, and such other costs and expenses that may be incidental or necessary for the issuance of the Series 1996 Bonds and such refunding are hereby authorized. Approval of the form of an Escrow Deposit Agreement and the appointment of an Escrow Agent in connection with such refunding shall be accomplished by subsequent resolution of the Board. Section 202. Authorization of Series 1996 Bonds' Hedge Agreement and Interest Swap Agreements. Subject and pursuant to the provisions of this Ordinance, the Series 1996 Bonds to be known as "Dade County, Florida, Public Service Tax Revenue Refunding Bonds, Series 1996" are hereby authorized to be issued at one time or from time to time as needed in one or more Series in an aggregate principal amount not to exceed $70,000,000 for the purpose of refunding the Series 1986 Bonds and paying the related costs of issuance subject to the terms and conditions of this Ordinance and of any subsequent related ordinance or resolution. The County may enter into Hedge Agreements and Interest Swap Agreements as permitted by this Ordinance and as authorized by subsequent ordinance or resolution. Section 203. Details and Terms of Bonds. The Board shall by supplemental ordinance or resolution specify, or provide for specification, for each Series of Bonds prior to their issuance, their terms and provisions, including, but not limited to the date and terms of maturity or maturities of the Bonds; the principal amount and place and manner of payment; the principal and interest payment dates and the manner in which interest is to be calculated; the interest rate or rates of the Bonds, which may include variable, dual, convertible or other rates, compound interest, Capital Appreciation Bonds, original issue discount and zero interest rate bonds, provided that the average net interest cost rate on such Bonds shall never exceed the maximum interest rate permitted by law in effect at the time such Bonds are issued, and provided further that in the event original issue discount, zero interest rate, Capital Appreciation Bonds, or similar Bonds are issued, only the original principal amount of such Bonds shall be deemed to be issued on the date of issuance for the purposes of the maximum amount of Bonds authorized under the supplemental ordinance or resolution authorizing such Bonds; the denominations, numbering and lettering of such Bonds; the Bond Registrar, the Paying Agent and place or places of payment of such Bonds; the terms of redemption for such Bonds; the use of proceeds of such Bonds; and the Reserve Requirement, if any, with respect to such Bonds. Section 204. Execution and Form of Bonds. (a) Bonds shall be signed by, or bear the facsimile signature of, the Chairperson and shall be signed by, or bear the facsimile signature of the Clerk and the official seal of the County or a facsimile thereof shall be imprinted on the Bonds. When applicable, the Bonds shall be authenticated by manual signature of an authorized signer on behalf of an authenticating agent for such Bonds. The County may provide any other uniform method for execution and authentication of Bonds by supplemental ordinance or resolution related to such Bonds. (b) The form of any Bonds shall be specified in or provided for in the supplemental ordinance or resolution under which such Bonds are issued. (c) Bonds issued pursuant to any supplemental ordinance or resolution may be issued in Book-Entry Form, or may be issued in fully certificated form. Section 205. Negotiability. Registration and Transfer of Bonds. The Bond Registrar shall keep books for the registration and transfer of Bonds and for the registration of transfers of Bonds. The Bonds shall be transferable by the Registered Owner in person or by his attorney duly authorized in writing only upon the registration books of the County kept by the Bond Registrar and only upon their surrender together with a written instrument of transfer satisfactory to the Bond Registrar duly executed by the Registered Owner or his duly authorized attorney. Upon the transfer of any such Bond, the Bond Registrar on behalf of the County shall issue in the name of the transferee a new Bond or Bonds. The County, the Paying Agent and the Bond Registrar shall deem and treat the person in whose name any Bond shall be registered upon the books kept by the Bond Registrar as the absolute owner of such Bond, whether such Bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such Bond as the same become due and for all other purposes. All such payments so made to any such Registered Owner or upon his order shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid, and neither the County, the Paying Agent nor the Bond Registrar shall be affected by any notice to the contrary. At the option of the Registered Owner and upon surrender of the Bonds at the designated corporate trust office of the Bond Registrar with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the Registered Owner or his duly authorized attorney, and upon payment by such Registered Owner of any charge which the Bond Registrar may make as provided in this Section, the Bonds may be exchanged for Bonds of the same Series, interest rate, maturity date and tenor of another authorized denomination. In all cases in which the privilege of exchanging Bonds or transferring Bonds is exercised, the County shall execute and the Bond Registrar shall authenticate and deliver Bonds in accordance with the provisions of this Ordinance or any applicable supplemental ordinance or resolution. All Bonds surrendered in any such exchanges or transfers shall forthwith be delivered to the Bond Registrar and canceled by the Bond Registrar in the manner provided in this Section. There shall be no charge for any such exchange or transfer of Bonds, but the County or the Bond Registrar may require the payment of a sum sufficient to pay any tax, fee or other governmental charge required to be paid with respect to such exchange or transfer. Neither the County nor the Bond Registrar shall be required (a) to transfer or exchange Bonds for a period from a record date established by the ordinance or resolution authorizing that Series of Bonds to the next succeeding interest payment date on such Bonds or 15 days next preceding any selection of Bonds to be redeemed or thereafter until after the mailing of any notice of redemption; or (b) to transfer or exchange any Bonds called for redemption. However, if less than all of a Term Bond is redeemed or defeased, the County shall execute and the Bond Registrar shall authenticate and deliver, upon the surrender of such Term Bond, without charge to the Bondholder, for the unpaid balance of the principal amount of such Term Bond so surrendered, a registered Term Bond in the appropriate denomination and interest rate. All Bonds paid or redeemed, either at or before maturity shall be delivered to the Bond Registrar when such payment or redemption is made, and such Bonds, together with all Bonds purchased by the County, shall thereupon be promptly canceled. Bonds so canceled may at any time be destroyed by the Bond Registrar, who shall execute a certificate of destruction in duplicate by the signature of one of its authorized officers describing the Bonds so destroyed, and one executed certificate shall be filed with the Finance Director and the other executed certificate shall be retained by the Bond Registrar. The Board, by supplemental ordinance or resolution, may provide for the registration of the Bonds of any Series by adopting a Book-Entry System for such Series. Beneficial ownership of such Bonds shall be transferred in accordance with the procedures of the securities depository and its participants. Section 206. Bonds Mutilated, Destroyed' Stolen or Lost. In case any Bond shall become mutilated, or be destroyed, stolen or lost, the County may in its discretion cause to be executed, and the Bond Registrar shall authenticate and deliver, a new Bond of like date and 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 Registered Owner furnishing the County and the Bond Registrar proof of his ownership thereof and satisfactory indemnity and complying with such other reasonable regulations and conditions as the County and the Bond Registrar may prescribe and paying such expenses as the County and the Bond Registrar may incur. All Bonds so surrendered shall be canceled by the Bond Registrar or Paying Agent on behalf of the County. If any of the Bonds shall have matured or be about to mature, instead of issuing a substitute Bond, the County may pay the same, upon being indemnified as aforesaid, and if such Bond be lost, stolen or destroyed, without its surrender. Any such duplicate Bonds issued pursuant to this Section 206 shall constitute original, additional contractual obligations on the part of the County whether or not the lost, stolen or destroyed Bonds be at any time found by anyone, and such duplicate Bonds shall be entitled to equal and proportionate benefits and rights as to lien on and source and security for payment from the funds, as pledged in this Ordinance, to the same extent as all other Bonds. Section 207. Temporary Bonds. Pending the preparation of definitive Bonds, the County may execute and deliver temporary Bonds. Temporary Bonds shall be issuable as registered Bonds without coupons, of any authorized denomination, and substantially in the form of the definitive Bonds but with such omissions, insertions, and variations as may be appropriate for temporary Bonds, all as may be determined by the County. Temporary Bonds may contain such reference to any provisions of this Ordinance as may be appropriate. Every temporary Bond shall be executed and authenticated upon the same conditions and in substantially the same manner, and with like effect, as the definitive Bonds. As promptly as practicable the County shall execute and shall furnish definitive Bonds and thereupon temporary Bonds may be surrendered in exchange for definitive Bonds without charge at the principal office of the Bond Registrar, and the Bond Registrar shall authenticate and deliver in exchange for such temporary Bonds a like aggregate principal amount of definitive Bonds of authorized denominations. Until so exchanged, the temporary Bonds shall be entitled to the same benefits under this Ordinance as definitive Bonds. Section 208. Issuance of Additional Bonds. Additional Bonds, payable on a parity from the Pledged Funds with the Series 1996 Bonds, as provided in this Ordinance, can be issued and delivered only if there shall have been obtained and filed with the Finance Director the following: (a) a copy, certified by the Clerk, of an ordinance or ordinances or a resolution or resolutions, which shall further include a brief and general description of purpose for which the Additional Bonds are to be issued; (b) a copy, certified by the Clerk, of an ordinance or resolution (which may be the same ordinance or resolution described in (a) above), awarding such Additional Bonds, specifying the interest rate of each such Additional Bond and directing the delivery of such Additional Bonds to or upon the order of the purchasers therein named upon payment of the purchase price therein set forth; (c) an opinion of the County Attorney to the effect that the issuance of such Additional Bonds has been duly authorized and that all conditions precedent to the delivery of such Additional Bonds have been fulfilled; and (d) a certificate of the Finance Director stating that the Sales Tax for a period of any twelve consecutive months out of the twenty-four months immediately preceding the sale of Additional Bonds is 1.20 times the Maximum Bond Service Requirement on all Bonds then Outstanding and the proposed Additional Bonds. Section 209. Issuance of Refunding Bonds. The County may issue at any time and from time to time Refunding Bonds for the purpose of refunding any Series of Bonds, or any maturity of Bonds within a Series or any portion of such maturity, without the necessity of complying with the requirements contained in Section 208(d) above provided that prior to or simultaneously with the issuance of such Refunding Bonds there shall be filed with the Finance Director a report from an independent certified public accountant and/or an opinion of Bond Counsel to the effect that (i) the net proceeds from such Refunding Bonds will be sufficient to cause the lien created by this Ordinance with respect to the Series of Bonds to be refunded to be defeased pursuant to Article X and (ii) the Maximum Bond Service Requirement with respect to Bonds Outstanding following the issuance of the Refunding Bonds shall be less than the Maximum Bond Service Requirement with respect to the Bonds Outstanding immediately prior to the issuance of such Refunding Bonds, including the Bonds to be refunded. In addition, prior to or simultaneously with the issuance of such Refunding Bonds, there shall be filed with the Finance Director, an opinion of the County Attorney to the same effect as the opinion required by Section 208(c) and an opinion of Bond Counsel to the effect that (a) the proceeds from the sale of the Refunding Bonds have been set aside in irrevocable escrow for the payment of the Bonds to be refunded in the manner described in Article X below and (b) the issuance of the Refunding Bonds and the use of the proceeds of the Refunding Bonds as described above will not have the effect of causing the interest on any Bonds other than Taxable Bonds then Outstanding under this Ordinance (including the Bonds to be refunded) to become includable in gross income for federal income tax purposes. Section 210. Additional Requirements for Issuance of Additional Bonds and Refunding Bonds. In addition to the other requirements of Sections 208 and 209 of this Ordinance, each ordinance or resolution authorizing the issuance of Additional Bonds or Refunding Bonds will recite that all of the material covenants of this Ordinance will be applicable to such Additional Bonds or Refunding Bonds, and no default shall have occurred and be continuing in the performance of any of the covenants and obligations and all payments required to have been made into the accounts and funds under the terms of this Ordinance shall have been made to the full extent required before any Additional Bonds or Refunding Bonds may be issued. Bonds issued pursuant to the terms and conditions of Section 208 or Section 209 shall be deemed on a parity with all Bonds then Outstanding, and all of the covenants and other provisions of this Ordinance, to the extent provided hereby, shall be for the equal benefit, protection and security of the Holders of any Bonds originally authorized and issued pursuant to this Ordinance and the Registered Owners of any Bonds evidencing additional obligations subsequently created within the limitations of and in compliance with Section 208 or Section 209. Bonds shall be issued only for the purpose of financing one or more Projects, to finance termination payments relating to Hedge Agreements or for the purpose of refunding any obligations previously issued for such purposes. Section 211. Issuance of Other Obligations. The County shall not issue any other obligations payable from the Pledged Funds, nor voluntarily create or cause to be created any debt, lien, pledge, assignment, encumbrance or other charge having priority to or being on a parity with the lien on the Pledged Funds in favor of the Registered Owners of the Bonds issued pursuant to this Ordinance, except under the conditions and in the manner provided in this Ordinance and except for Hedge Agreements permitted under this Ordinance. Any obligations issued by the County other than the Series 1996 Bonds, Additional Bonds, Refunding Bonds and Hedge Agreements shall contain an express statement that such obligations are junior and subordinate in all respect to the Bonds as to lien on, source of and security for payment from the Pledged Funds. Section 212. Negotiability. The Bonds shall be and have all the qualities of investment securities under the Uniform Commercial Code-Investment Securities Law of the State of Florida. ARTICLE III REDEMPTION Section 301. Provisions for Redemption. Except as otherwise provided in this Ordinance, each Series of Bonds shall be subject to redemption prior to maturity at such times, in such manner and at such redemption price or redemption premium as shall be established by subsequent resolution or ordinance of the Board adopted or enacted, as the case may be, at or before the delivery of such Bonds. Section 302. Notice of Redemption. Notice of redemption shall be given by the Paying Agent on behalf of the County by deposit in the U.S. Mail of a copy of a redemption notice, postage prepaid, at least thirty (30) and not more than sixty (60) days before the redemption date to all Registered Owners of such Series of Bonds or portions of such Series of Bonds to be redeemed at their addresses as they appear fifteen days prior to the date such notice is mailed on the registration books to be maintained in accordance with the provisions of this Ordinance. Failure to mail any such notice to a Registered Owner of a Bond to be redeemed or any defect therein, shall not affect the validity of the proceedings for redemption of any Bond or portion of a Bond with respect to which no failure or defect occurred. Such notice shall set forth the date fixed for redemption, the rate of interest borne by each Bond to be redeemed, the redemption price of each Bond to be paid, the date of the notice of redemption, the name and address of the Paying Agent and, if less than all of the Bonds of such Series then Outstanding shall be called for redemption, the distinctive numbers and letters, including CUSIP numbers, if any, of such Bonds to be redeemed and, in the case of Bonds to be redeemed in part only, the portion of the principal amount to be redeemed. If any Bond is to be redeemed in part only, the notice of redemption which relates to such Bond shall also state that on or after the redemption date, upon surrender of such Bond, a new Bond or Bonds in a principal amount equal to the unredeemed portion of such Bond will be issued. Any notice mailed as provided in this Section shall be conclusively presumed to have been duly given, whether or not the Owner of such Bond receives such notice. In addition to the mailing of the notice described above, each notice of redemption and payment of the redemption price shall meet the requirements of this paragraph set forth below; provided, however, that failure of such notice or payment to comply with the terms of this paragraph shall not in any manner defeat the effectiveness of a call for redemption or in any way create a default under or violation of the terms of this Ordinance if notice is given as prescribed above: (a) Each notice of redemption shall be sent at least 35 days before the redemption date by registered or certified mail or overnight delivery service or telecopy to all registered securities depositories then in the business of holding substantial amounts of obligations of types comprising the Bonds (such depositories now being The Depository Trust Company, New York, New York, Midwest Securities Trust Company, Chicago, Illinois, and Philadelphia Depository Trust Company, Philadelphia, Pennsylvania) and to one or more national information services that disseminate notices of redemption of obligations such as the Bonds. (b) Each notice of redemption shall be published on behalf of the County by the Paying Agent one time in The Bond Buyer of New York, New York or, if such publication is impractical or unlikely to reach a substantial number of the Holders of the applicable Series of Bonds, in some other financial newspaper or journal which regularly carries notices of redemption of other obligations similar to the Bonds, such publication to be made at least thirty days prior to the date fixed for redemption. (c) Upon the payment of the redemption price of Bonds being redeemed, each check or other transfer of funds issued for such purpose shall bear the CUSIP number identifying, by issue and maturity, the Bonds being redeemed with the proceeds of such check or other transfer. The Bond Registrar shall not be required to transfer or exchange any Bond after the publication and mailing of a notice of redemption nor during the period of fifteen days next preceding publication and mailing of a notice of redemption. Section 303. Redemption of a Portion of Bonds. In case part but not all of an Outstanding fully registered Bond shall be selected for redemption, the Registered Owner thereof shall present and surrender such Bond to the Paying Agent for payment of the principal amount thereof so called for redemption, and the Bond Registrar shall authenticate and deliver to or upon the order of such Registered Owner, without charge therefor, for the unredeemed balance of the principal amount of the Bond so surrendered, a Bond or Bonds fully registered as to principal and interest. Section 304. Bonds called for Redemption not Deemed Outstanding. Bonds or portions of Bonds that have been duly called for redemption under the provisions hereof, and with respect to which amounts sufficient to pay the principal of, redemption premium, if any, and interest to the date fixed for redemption shall be delivered to and held in separate accounts by an escrow agent or any Paying Agent in trust for the Registered Owners thereof, as provided in this Ordinance, shall not be deemed to be Outstanding under the provisions of this Ordinance and shall cease to be entitled to any lien, benefit or security under this Ordinance, except to receive the payment of the redemption price on or after the designated date of redemption from moneys deposited with or held by such escrow agent or the Paying Agent, as the case may be, for such redemption of the Bonds and, to the extent provided in the preceding paragraph to receive Bonds for any unredeemed portion of the Bonds. ARTICLE IV CONSTRUCTION FUND Section 401. Creation of Construction Fund; Lien on Such Fund. There is hereby created and established a fund to be designated the "Dade County, Florida, Public Service Tax Revenue Bonds (Public Service Tax) Construction Fund" (the "Construction Fund"). The Finance Director on behalf of the County shall cause to be established a separate account in the Construction Fund for each Project or Projects to be financed by any Series of Bonds (the "Project Account") and two separate subaccounts in each Project Account, one for deposit, at the election of the Finance Director, of an amount of proceeds or other funds of the County to be used to pay the capitalized interest for such Series of Bonds, and the other for the deposit of an amount of proceeds or other funds of the County to pay all or a portion of the costs of issuance of such Bonds. The proceeds of Bonds not needed for capitalized interest or to pay costs of issuance shall remain in the Project Account to pay other Costs of the Project. Each account and subaccount shall be kept separate and apart from all other funds and accounts of the County, and the moneys on deposit in the Project Account and subaccounts shall be withdrawn, used and applied by the Finance Director, as trustee for such funds for the purposes of this Ordinance, solely for the payment of the Costs of the Project for which the Project Account and its two subaccounts were created and related purposes. There is hereby created a lien on such moneys in favor of the Bondholders of the applicable Series of Bonds until applied as provided in this Ordinance. Section 402. Payments from Construction Fund. Payments of the Costs of Projects shall be disbursed subject to such controls and procedures as the County may establish from time to time, subject to any applicable provisions of this Ordinance. Section 403. Costs of Project. With respect to each Project, the Costs of the Project shall be deemed to include, but shall not be limited to, cost of the items described in the plans and specifications, the cost of any lands or interest in lands or any other properties deemed necessary or convenient, engineering, design, planning, legal and financing expenses, including, without limitation, the cost of any Bond Insurance Policy, Reserve Fund Facility, Credit Facility or Liquidity Facility, Hedge Charges, Rating Agency fees and printing costs, fees payable to accountants or others, expenses for plans, specifications and surveys, fees for fiscal agents, underwriters, financial advisors and consultants, if any, administrative expenses relating solely to the construction and acquisition of the Project, all expenses for estimates of costs and of revenues, costs of obtaining governmental and regulatory permits, licenses, consents and approvals, all costs relating to claims or judgments arising out of the construction of the Project, all federal, state and local taxes and payments in lieu of taxes required to be paid in connection with the acquisition and construction of the Project, the reimbursement to the County of all such costs of the Project that have been advanced by the County from its available funds before the delivery of a Series of Bonds issued to finance such costs, interest on the Bonds accruing during construction of such Project, and such other costs and expenses that may be necessary or incidental to the financing and construction of such Project or are permitted under applicable law. Capitalized interest, if any, deposited to a subaccount to the applicable Project Account in the Construction Fund and any investment income shall be transferred to the extent necessary, to the Debt Service Fund to pay interest on the related Series of Bonds. Any funds on deposit in the Construction Fund that, in the opinion of the Finance Director, are not immediately necessary for expenditure may be invested and reinvested in Permitted Investments which shall mature or be redeemable at face value not later than the dates on which such funds are needed. All income derived from investment of funds in an account or subaccount in the Construction Fund shall be deposited in such account or subaccount to which such investment income is attributable and shall be used to pay capitalized interest or Costs of the Project, as the case may be. Any liquidated damages or settlement in payments received by the County as a result of the breach by any contractor, subcontractor or supplier working on or supplying goods for a Project of any representation, warranty or performance guaranty, and all insurance proceeds received with respect to damages to such Project during construction, shall be deposited into the appropriate account in the Construction Fund to insure completion of such Project. Section 404. Construction of Projects: Disposition of Construction Fund Balance. The County covenants to commence the acquisition and construction of each Project promptly upon delivery of the applicable Series of Bonds and to thereafter work with due diligence to complete such Project. Upon completion of each Project, any amounts then remaining in the related Project Account in the Construction Fund and not reserved by the County for the payment of any remaining Costs of the Project shall be deposited into the Debt Service Fund and used to purchase or redeem Bonds in the manner that Bonds are to be redeemed under the terms of this Ordinance or to pay principal or interest on the Bonds. Upon the occurrence of a payment default, the moneys in an account in the Construction Fund related to a Series of Bonds may be applied to the payment of such Bonds. ARTICLE V PLEDGE OF PLEDGED FUNDS; FUNDS AND ACCOUNTS Section 501. Pledge of Pledged Funds. The payment of the principal of, redemption premium, if any, and interest on the Bonds and the payment of Hedge Obligations, shall be secured, as provided in this Ordinance, equally and ratably by an irrevocable lien on the Pledged Funds, prior and superior to all other liens or encumbrances on the Pledged Funds, and the County does hereby irrevocably pledge the Pledged Funds for the payment of the principal of and interest on the Bonds, for the reserves for such Bonds, for Hedge Obligations and for all other payments provided in this Ordinance, in the manner and with the priority of application as provided in this Ordinance. The County has the authority to irrevocably pledge the Pledged Funds, and the Pledged Funds are estimated to be sufficient to pay the principal of and interest on the Series 1996 Bonds as they become due and all other amounts required to be deposited by this Ordinance. Notwithstanding the foregoing, nothing in this Ordinance shall be deemed to grant or create a lien in favor of the Bondholders on any moneys, including investment earnings, in the Rebate Fund. The Bonds and Hedge Obligations are secured solely by a pledge of the Pledged Funds and the Bonds shall not be or constitute general obligations or indebtedness of the County within the meaning of the Constitution of the State of Florida, but shall be payable from and secured by a lien solely upon and a pledge of the Pledged Funds. No Bondholder or Counterparty shall ever have the right to compel the exercise of the ad valorem taxing power of the County or taxation in any form on any property to pay the principal of, any redemption premium, if any, and interest on such Bonds, or any Hedge Obligations or Hedge Charges, nor shall any such Bondholder be entitled to payment of such principal, redemption premium, if any, or interest thereon or any Counterparty be entitled to payment of any Hedge Obligations or Hedge Charges from any other funds of the County except the Pledged Funds. Section 502. Creation of Funds and Accounts. There are hereby created and established the "Dade County, Florida Public Service Tax Revenue Bonds (Public Service Tax) Revenue Fund" (the "Revenue Fund"), the "Dade County, Florida Public Service Tax Revenue Bonds (Public Service Tax) Debt Service Fund" (the "Debt Service Fund"), the "Dade County, Florida Public Service Tax Revenue Bonds (Public Service Tax) Reserve Fund" (the "Reserve Fund") and the "Dade County, Florida Public Service Tax Revenue Bonds (Public Service Tax) Rebate Fund" (the "Rebate Fund"). Section 503. Trust Funds. Such funds and accounts constitute trust funds for the specific purposes for which they are created under this Ordinance, shall be delivered to and held by the Finance Director (or an Authorized Depositary designated by the Finance Director), who in each case, shall act as trustee of such funds and accounts for the purposes of this Ordinance, and shall at all times be kept separate and distinct from all other funds of the County and used only as provided in this Ordinance. Moneys held in the Revenue Fund, the Debt Service Fund and the Reserve Fund shall be subject to a lien and charge in favor of the Registered Owners of-the Bonds as provided by the terms of this Ordinance. Section 504. Disposition of Revenue Fund. Commencing immediately following the issuance of the Series 1996 Bonds, and periodically thereafter as soon as received, the County shall deposit into the Revenue Fund all Designated Revenues. Commencing as soon as the Designated Revenues shall be received following the delivery of the Series 1996 Bonds and continuing monthly thereafter, the funds in the Revenue Fund shall be disposed of only in the following order and priority: (1) First by deposit into the Debt Service Fund (after taking into account any amount held in a fund, account or subaccount created under this Ordinance as capitalized or accrued interest from the proceeds of Bonds which is available for payment of interest) an amount equal to one-sixth (1/6th) of the interest maturing on the Bonds on the next interest payment date, with respect to Bonds that bear interest payable semiannually, the amount of interest next maturing on Bonds that bear interest payable monthly, the amount of interest accruing in such month on Bonds that bear interest on other than a monthly or semiannual basis (other than Bonds that bear interest only payable upon maturity or redemption), one-twelfth (1/12th) of all principal and, with respect to Bonds that pay interest only upon maturity or redemption, principal and accreted interest, maturing or becoming payable during the current Bond Year on the various Series of Serial Bonds that mature annually, one-sixth (1/6th) of all principal and, with respect to Bonds that pay interest only upon maturity or redemption, principal and accreted interest, maturing or becoming payable on the next maturity date in such Bond Year on the various Series of Serial Bonds that mature semiannually, and one-twelfth (1/12th) of the Amortization Requirements and unamortized principal balances of Term Bonds coming due during the then-current Bond Year with respect to the Bonds, until there are sufficient funds then on deposit equal to the sum of the interest, principal and redemption premium, if any, due on the Bonds on the next interest, principal and redemption dates in such Bond Year. Hedge Receipts (other than those constituting termination payments) shall be deposited into the Debt Service Fund upon receipt. The amount specified in this subparagraph (1) shall be reduced to take into account Hedge Receipts (other than those constituting termination payments) received on or before an interest payment date and shall be increased to provide for the payment of any Hedge Obligations to be paid on or before the succeeding interest payment date; provided, however, that unless the County shall have obtained an opinion of counsel at the time of execution of the Hedge Agreement that the Hedge Receipts shall not constitute preferential payments by the Counterparty for purposes of the Federal Bankruptcy Code, such Hedge Receipts shall not be taken into account for the purpose of this sentence until such time as they have been in the possession of the County for at least ninety (90) days. If any Bonds (or any Hedge Obligations) bear interest at a Variable Rate, the amount of scheduled interest due on such Bonds (or Hedge Obligations) in a Bond Year for the purposes of this Section shall be calculated assuming such interest will accrue, with respect to such Bonds (or Hedge Obligations), at the deemed rate of interest on Variable Rate Bonds (or Hedge Obligations) pursuant to the definition of the term "Variable Rate" in this Ordinance, unless otherwise provided by the ordinance or resolution authorizing such Series of Bonds. Deposits required pursuant to the foregoing shall be increased or decreased each month to the extent required to pay interest, principal and redemption premium, if any, next becoming due and payable, after making allowance for any accrued and capitalized interest, and to make up any deficiency or loss that may otherwise arise in such fund or account. Notwithstanding anything in this subparagraph (1) to the contrary, if principal or interest payments have been made on behalf of the County by a Bond Insurer or the provider of a Liquidity Facility or Credit Facility or other entity insuring, guaranteeing or providing for the payment of Bonds or any Series thereof, moneys on deposit in the Debt Service Fund and allocable to such Bonds shall be paid to such Bond Insurer or issuer of the Liquidity Facility or Credit Facility or other entity having theretofore made a corresponding payment on the Bonds. Deposits from the Revenue Fund into the Debt Service Fund may be decreased or funds previously deposited into the Debt Service Fund may be withdrawn and deposited in the manner provided in subparagraphs (2) and (3) of this Section, as appropriate, to adjust for Bonds purchased, redeemed or otherwise paid from excess construction funds as provided in Section 404. Funds in the Debt Service Fund shall be used only to pay interest on the Bonds when due, to pay the principal of maturing Bonds, if any, the current Amortization Requirement (or the principal of Term Bonds payable from the Amortization Requirement) and any applicable redemption premiums and to pay Hedge Obligations when due. At the maturity date of each Bond and at the due date of each Amortization Requirement and installment of interest on each Bond, the County shall transfer from the Debt Service Fund to the Paying Agent for such Bonds sufficient moneys to pay all principal of, redemption premium, if any, interest and Amortization Requirements then due and payable with respect to such Bonds. Such payments may be made by wire transfer or other electronic means or as may be provided with respect to any applicable Book-Entry System. (2) Then, by deposit into the Reserve Fund amounts, if any, which, after taking into account other funds then on deposit in the Reserve Fund, will be sufficient to make the funds on deposit in the Reserve Fund equal to the Reserve Requirement. Notwithstanding anything in this Ordinance to the contrary, the County shall not be required to fully fund in the Reserve Fund, if (i) at the time of issuance of any Series of Bonds, it elects, by ordinance or resolution enacted or adopted, as the case may be, prior to the issuance of such Series of Bonds and subject to the limits described below, to fully fund the Reserve Fund over a period specified in such ordinance or resolution not to exceed sixty (60) months, during which it shall make substantially equal monthly installments in order that the amounts on deposit therein at the end of such period shall equal the Reserve Requirement, or (ii) it provides at any time or from time to time in lieu of such funds a Reserve Fund Facility issued by a Reserve Fund Facility Provider in an amount equal to the difference between the Reserve Requirement and the sums then on deposit (or required to be on deposit over a specified period of time as authorized above) in the Reserve Fund. Such Reserve Fund Facility as provided above must provide for payment on any interest or principal payment date (provided adequate notice is given) on which a deficiency exists (or is expected to exist) in moneys held under this Ordinance for a payment with respect to Bonds which cannot be cured by funds in any other account held pursuant to this Ordinance and available for such purpose, and which shall name the Paying Agent or an Authorized Depositary who has agreed to serve as trustee for the benefit of the Bondholders as the beneficiary. In no event shall the use of such Reserve Fund Facility be permitted if it would cause an impairment in any existing rating on the Bonds or any Series of Bonds. If the Reserve Fund is to be funded in installments pursuant to clause (i) above upon the issuance of any Series of Bonds, the deposits required pursuant to the foregoing may be limited to the amount which will be sufficient to pay the required monthly installments specified in the ordinance or resolution authorizing such Bonds, plus an additional amount necessary to make up any deficiencies caused by withdrawals or resulting from the valuation of the funds on deposit in the Reserve Fund. If a disbursement is made from a Reserve Fund Facility as provided pursuant to clause (ii) above, the County shall be obligated to reinstate the maximum limits of such Reserve Fund Facility immediately following such disbursement or to replace such Reserve Fund Facility by depositing into the Reserve Fund from the first available Pledged Funds for deposit pursuant to this clause (2), funds in the maximum amount originally payable under such Reserve Fund Facility, plus amounts necessary to reimburse the Reserve Fund Facility Provider for previous disbursements made pursuant to such Reserve Fund Facility, or a combination of such alternatives, and for purposes of this clause (2), amounts necessary to satisfy such reimbursement obligation and other obligations of the County to such a Reserve Fund Facility Provider shall be deemed required deposits into the Reserve Fund, but shall be used by the County to satisfy its obligations to the Reserve Fund Facility Provider. Notwithstanding the foregoing, if the Reserve Fund has been funded with cash or Permitted Investments and no event of default shall have occurred and be continuing under this Ordinance, the County may, at any time in its discretion, substitute a Reserve Fund Facility meeting the requirements of this Ordinance for the cash and Permitted Investments, and the County may then withdraw such cash and Permitted Investments and apply them to any lawful purpose, so long as (i) the same does not adversely affect any rating by a Rating Agency then in effect for the Outstanding Bonds and (ii) the County obtains an opinion of Bond Counsel that such actions will not, in and of themselves, adversely affect the exclusion from gross income of interest on the Bonds (if other than Taxable Bonds) for federal income tax purposes. Cash on deposit in the Reserve Fund shall be used (or investments purchased with such cash shall be liquidated and the proceeds applied as required) prior to any drawing on any Reserve Fund Facility. If and to the extent that more than one Reserve Fund Facility is deposited in the Reserve Fund, drawings thereunder and repayments of costs associated therewith shall be made on a pro rata basis, calculated by reference to the maximum amounts available thereunder. Funds on deposit in the Reserve Fund may be used only for the purpose of curing deficiencies in the Debt Service Fund. If funds on deposit in the Reserve Fund exceed, in the aggregate, the Reserve Requirement, such excess shall be paid into the Debt Service Fund; provided, however, that excess funds in the Reserve Fund attributable to the refunding of Bonds of a Series may be applied in the manner provided in the proceedings of the County with respect to such refunding. Any proceeds received from a Reserve Fund Facility shall be applied immediately to cure deficiencies in the Debt Service Fund and for no other purpose. Prior to the issuance of the Series 1996 Bonds, the Board shall by resolution provide for the determination of the Reserve Requirement. (3) Then by payment to the County to be used for any lawful purpose, including, without limitation, payments of the Rebate Amount and the payment of Hedge Charges. The County shall not be required to make any further payments into the Debt Service Fund or the Reserve Fund when the aggregate amount of moneys in the Debt Service Fund and Reserve Fund are at least equal to the aggregate Bond Obligation of Bonds issued pursuant to this Ordinance and then Outstanding, plus the amount of interest then due or thereafter to become due on said Bonds then Outstanding, plus the amount of Hedge Obligations due or to become due, or if all Bonds then Outstanding have otherwise been defeased pursuant to Article X below. Section 505. Security for Deposits. The funds and accounts established by this Ordinance shall constitute trust funds for all of the purposes provided in this Ordinance and shall be continuously secured in the same manner as governmental deposits are authorized to be secured by the laws of the State of Florida. Section 506. Redemption of Bonds from Amortization Requirements. In each Bond Year moneys deposited in the Debt Service Fund as Amortization Requirements shall be applied to the retirement of Term Bonds of each Series as follows: (1) First, if so elected by the Finance Director, the County shall endeavor to purchase outstanding Term Bonds redeemable from Amortization Requirements during such Bond Year, and pro rata (based on the principal amount of the Amortization Requirement due in such Bond Year for each such Series of Term Bonds) among all such Bonds if more than one Series of such Term Bonds are outstanding. The County shall purchase Bonds hereunder only to the extent moneys are available therefor, at the most advantageous price obtainable with reasonable diligence, but that price cannot exceed the principal of such Term Bonds and the redemption premium which would be applicable if the moneys applied to such purchase were otherwise applied to the redemption of Term Bonds under paragraph (2) below, and no such purchase shall be made by the County within sixty-one (61) days immediately preceding the date on which such Term Bonds are subject to call for redemption. (2) Then, to the extent such moneys were not used under paragraph (1) above, the County shall call by lot for redemption on the date on which Term Bonds of such Series are subject to mandatory redemption from the Amortization Requirement such amount of Term Bonds of such Series then subject to redemption as will as nearly as may be practicable exhaust the remainder of the Amortization Requirement of the current Bond Year. (3) The County shall pay from the Debt Service Fund the principal of, the redemption premium, if any, and the interest accrued on such Term Bonds to the date of delivery or the date of redemption thereof. If Term Bonds are purchased or redeemed pursuant to this Section in excess of the Amortization Requirements for such Bond Year, such excess principal amount of such Term Bonds so purchased or redeemed shall be credited against subsequent Amortization Requirements for Bonds in such Series in such Bond Year or Years as the County may determine and as may be reflected in the County's permanent accounting records. Such election shall be included in the annual audited reports of County referred to in Section 702 below. ARTICLE VI INVESTMENT OF MONEY IN FUNDS AND ACCOUNTS Section 601. Revenue Fund and Debt Service Fund. Funds in the Revenue Fund and Debt Service Fund may be invested and reinvested in Permitted Investments, but all such investments shall mature or be redeemable at not less than par and not later than the dates on which the funds are required for the purposes for which they were established. Such investments shall mature no later than five (5) years from the date such investments are made. Section 602. Reserve Fund. (a) Funds in the Reserve Fund may be invested and reinvested in Permitted Investments, but all such investments must not mature later than the final maturity of the applicable Series of Bonds. (b) All income on investments of funds in the Reserve Fund shall be retained therein until amounts on deposit in the Reserve Fund equal the Reserve Requirement; thereafter, all such income from Reserve Fund investments shall be deposited into the Debt Service Fund. Section 603. Other Funds. All income on investment of funds in any other fund established hereby shall be retained in such fund and disposed of as provided under the terms of this Ordinance. ARTICLE VII COVENANTS Section 701. Books and Records. The County shall keep separately identifiable financial books, records, accounts and data concerning the collection of the Designated Revenues, and any Bondholder shall have the right at all reasonable times to inspect the same. Section 702. Reports and Annual Audits. The County shall, as soon as practicable after the end of each Fiscal Year, cause the books, records, accounts and data relating to the Pledged Funds for the then ended Fiscal Year to be properly audited by an independent certified public accountant of recognized standing. Section 703. Enforcement of Collections. The County will diligently enforce its right to receive the Designated Revenues. The County will not repeal the ordinance or the County Code provision now in effect levying the Public Service Tax, will not amend or modify such ordinances or County Code provisions or take any other action so as to impair or adversely affect in any manner the pledge of the Pledged Funds made in this Ordinance or the rights of the Bondholders under this Ordinance. The County shall be unconditionally and irrevocably obligated, so long as any of the Bonds are outstanding and unpaid, to take all lawful action necessary or required to continue to entitle the County to receive the Designated Revenues in the same or greater amounts and at the same or greater rates as now provided by law to pay the principal of and interest on the Bonds and to make the other payments provided for in this Ordinance, including, without limitation, levying at collecting the Public Service Tax at a rate up to the maximum rate permitted by law. This provision shall not be construed to prevent revisions of the rates of the Public Service Tax as long as the amount of Pledged Funds in each year will be at least equal to 120% of the Maximum Annual Bond Service Requirement for any ensuing Bond Year. Section 704. County Depositories. All funds and accounts created under this Ordinance shall be deposited and maintained in one or more banks which are qualified to hold public funds of the County as county depositories under the laws of the State of Florida. Section 705. Paying Agents. The County shall transfer from the Debt Service Fund, or to the extent necessary and as permitted by the terms of this Ordinance, from other funds and accounts established in this Ordinance to the Paying Agents, an amount sufficient to pay when due the principal of, interest on and redemption premium, if any, with respect to the applicable Bonds. Section 706. Annual Budget. The Board shall cause to be prepared, approved and enacted each year by ordinance, a detailed Annual Budget pursuant to which it shall allocate, from the Pledged Funds, an amount which is sufficient to pay the Bond Service Requirement for the current Bond Year plus all other amounts required to be paid by the County pursuant to this Ordinance into the funds and accounts established hereunder, or otherwise, for such Bond Year. The covenant and agreement on the part of the County to budget and appropriate such amount shall be cumulative and shall continue until all required payments shall have been budgeted, appropriated, and actually paid into the Debt Service Fund, the Reserve Fund and the Rebate Fund. Copies of its Annual Budget shall be available for inspection at the offices of the Finance Director, and shall be mailed to any Bondholder requesting the same who shall pay the cost of reproducing the budget and to any Bond Insurer, Counterparty, Provider of a Reserve Fund Facility or provider of a Credit Facility or Liquidity Facility who shall have filed a request for the same with the County. Section 707. Instrument to Constitute a Contract. In consideration of the acceptance of the Bonds by those who shall hold the same from time to time, this Ordinance shall be deemed to be and shall constitute a contract between the County and the Registered Owners of the Bonds. The covenants and agreements set forth in this Ordinance to be performed by the County shall be for the equal benefit, protection and security of the Registered Owners of the Bonds, and each Bond shall be of equal rank with all other Bonds, without preference, priority or distinction over any other thereof, except as expressly provided in this Ordinance. ARTICLE VIII EVENTS OF DEFAULT; REMEDIES Section 801. Events of Default. Each of the following events is hereby declared an "Event of Default," that is to say if: (a) Payment of principal of any Bond shall not be made by the County when the same shall become due and payable, either at maturity (whether by acceleration or otherwise) or on required payment dates by proceedings for redemption or otherwise; or (b) Payment of any installment of interest shall not be made by the County when the same shall become due and payable; or (c) The County shall fail to cause any Bond to be purchased at the time required by the ordinance or resolution pursuant to which such Bond was issued; or (d) The County shall for any reason be rendered incapable of fulfilling its obligations hereunder to the extent that the payment of or security for the Bonds would be materially adversely affected, and such conditions shall continue unremedied for a period of thirty (30) days after the County becomes aware of such conditions; or (e) Any proceedings shall be instituted, with the consent or acquiescence of the County, for the purpose of effecting a composition between the County and its creditors or for the purpose of adjusting the claims of such creditors, pursuant to any federal or state statutes now or hereafter enacted, if the claims of such creditors are under any circumstances payable from the Designated Revenues; or (f ) The County shall default in the due and punctual performance of any other of the covenants, conditions, agreements and provisions contained in the Bonds or in this Ordinance on the part of the County to be performed, and such default shall continue for thirty (30) days after written notice specifying such default and requiring the same to be remedied shall have been given to the County by the registered owners of not less than ten percent (10%) of the Bond Obligation; or (g) The County shall default on any payments which are due under any agreement related to a Bond Insurance Policy, Reserve Fund Facility, Credit Facility or Liquidity Facility and the Bond Insurer or provider thereof shall notify the Finance Director in writing that it elects to treat such default as an Event of Default. Notwithstanding the foregoing, with respect to the events described in clause (f), the County shall not be deemed in default hereunder if such default can be cured within a reasonable period of time and if the County in good faith institutes appropriate curative action and diligently pursues such action until the default has been corrected. Section 802. Notice of Default. If any Event of Default shall occur, the Finance Director shall give, or cause to be given, within thirty (30) days after the Finance Director has knowledge of the Event of Default, unless such Event of Default shall have been cured, written notice of the Event of Default, by first class mail to the Registered Owners of all Bonds and to each Counterparty, Bond Insurer, Provider of a Reserve Fund Facility and provider of a Credit Facility or Liquidity Facility. Section 803. Remedies. Any trustee or any Registered Owner of Bonds issued under the provisions hereof acting for the Registered Owners of all Bonds may by suit, action, mandamus or other proceedings in any court of competent jurisdiction, protect and enforce any and all rights, including the right to the appointment of a receiver, existing under the laws of the State of Florida, or granted and contained in this Ordinance, and may enforce and compel the performance of all duties in this Ordinance required or by any applicable statutes to be performed by the County or by any officer thereof. Nothing in this Ordinance, however, shall be construed to grant to any Registered Owner of Bonds any lien on any property of or within the corporate boundaries of the County. No Registered Owner of Bonds shall have any right in-any manner whatever to affect, disturb or prejudice the security of this Ordinance or to enforce any right under this Ordinance except in the manner provided in this Ordinance, and al proceedings at law or in equity shall be instituted and maintained for the benefit of all Registered Owners of Bonds. Nothing in this Ordinance shall be construed to preclude any Counterparty from exercising any and all rights and remedies, including the right to the appointment of a receiver, available to it under the laws of the State of Florida as a pledgee to enforce the obligations of the County under an applicable Hedge Agreement. If any payments are made by a Bond Insurer, the provider of a Credit Facility or provider of a Liquidity Facility with respect to Bonds which have not been defeased in accordance with the provisions of Article X of this Ordinance, the lien upon and pledge of the money on deposit from time to time in the funds and accounts created and established in this Ordinance and all covenants and other obligations of the Issuer to the Registered Owners of such Bonds shall continue to exist and the provider of the Credit Facility or provider of the Liquidity Facility shall be subrogated to the rights of the Registered Owners of such Bonds with respect to the payments paid, insured or secured by such Bond Insurer, provider of such Credit Facility or provider of such Liquidity Facility. Section 804. Pro Rata Application of Funds. Anything in this Ordinance to the contrary notwithstanding, if at any time the available moneys in the Debt Service Fund shall not be sufficient to pay the principal of or the interest on the Bonds and Hedge Obligations as the same become due and payable, such moneys together with any moneys then available or thereafter becoming available for such purpose, whether through the exercise of the remedies provided for in this Article or otherwise, shall be applied as follows: First: to the payment of the persons entitled thereto of all installments of interest then due and payable on the Bonds and all Hedge Obligations (other than termination payments), in the order in which such amounts become due and payable, and, if the amount available shall not be sufficient to make payment in full, then to the payment ratably, according to the amounts due, to the persons entitled thereto, without any discrimination or preference except as to any difference in the respective rates of interest specified in the Bonds or applicable Hedge Agreement; Second: to the payment of the persons entitled thereto of the unpaid principal of any of the Bonds and Hedge Obligations which are termination payments that have become due (other than Bonds called for redemption for the payment of which sufficient moneys are held pursuant to the provisions of this Ordinance), in the order of their due dates, and, if the amount available shall not be sufficient to pay in full the principal of Bonds due on any particular date and then to the payment of such principal, ratably according to the amount of such principal due on such date, to the persons entitled thereto without any discrimination or preference except as to any difference in the respective rates of interest specified in the Bonds; and Third: to the payment of the interest on and the principal of the Bonds, and Hedge Obligations and to the purchase and retirement of Bonds and to the redemption of Bonds, all in accordance with the provisions of Article V of this Ordinance. For purposes of the foregoing provisions of this Section, if any principal or interest on any particular Bonds is paid with funds advanced under any Bond Insurance Policy, Credit Facility or Liquidity Facility, the Bond Insurer or provider of such Credit Facility or Liquidity Facility shall become subrogated to the Registered Owners' right to payment from the County of such principal or interest and shall be entitled to receive payment from the County under the foregoing provisions. Whenever moneys are to be applied by the County pursuant to the provisions of this Section, such moneys shall be applied by the County at such times, and from time to time, as the Finance Director in his sole discretion shall determine, having due regard to the amount of such moneys available for application and the likelihood of additional moneys becoming available for such application in the future; the deposit of such moneys with the Paying Agents, or otherwise setting aside such moneys, in trust for the proper purpose, shall constitute proper application by the County; and the County shall incur no liability whatsoever to any Bondholder or to any other person for any delay in applying any such funds, so long as the County acts with reasonable diligence, having due regard to the circumstances, and ultimately applies the same in accordance with such provisions of this Ordinance as may be applicable at the time of application. Whenever the Finance Director shall exercise such discretion in applying such funds, he or she shall fix the date upon which such application is to be made and upon such date interest on the amounts of principal to be paid on such date shall cease to accrue. The Finance Director shall give such notice as he may deem appropriate of the fixing of any such date, and shall not be required to make payment to the Registered Owner of any Bond until such Bond shall be surrendered to him for appropriate endorsement. The pro-rata application of moneys pursuant to this Section shall be adjusted with respect to Variable Rate Bonds and any Bonds bearing interest payable other than semiannually so as to ensure that each person entitled to receive payment shall receive as nearly as practicable the same proportion of the total amount due to such person, taking into account any interest paid since the preceding semiannual interest payment date. Section 805. Effect of Discontinuance of Proceedings. In case any proceeding taken by any Bondholder or Bond Insurer, Provider of any Credit Facility or provider of any Reserve Fund Facility or Liquidity Facility on account of any default shall have been discontinued or abandoned for any reason, then and in every such case the County and the Bondholder, Bond Insurer, Provider of the Reserve Fund Facility or provider of the Credit Facility or Liquidity Facility shall be restored to their former position and rights hereunder, respectively, and all rights and remedies of the Bondholders and Bond Insurers and Providers of Reserve Fund Facilities or providers of Credit Facilities or Liquidity Facilities shall continue as though no such proceeding had been taken. Section 806. Restriction on Individual Bondholder Actions. No Holder of any of the Bonds hereby secured nor any Counterparty shall have any right in any manner whatever by his or their action to affect, disturb or prejudice the security of this Ordinance or to enforce any right hereunder except in the manner provided in this Ordinance, and all proceedings at law or in equity shall be instituted, had and maintained for the benefit of all Registered Owners of such Bonds, all Counterparties and all Providers of Reserve Fund Facilities and all providers of Credit Facilities and Liquidity Facilities, as their respective interests may appear. Nothing in this Ordinance shall be construed to preclude any Counterparty from exercising any and all rights and remedies, including the right to the appointment of a receiver, available to it under the laws of the State of Florida as a pledgee to enforce the obligations of the County under the applicable Hedge Agreement. Section 807. Right to Enforce Payment of Bonds. Nothing in this Article shall affect or impair the right of any Registered Owners of a Bond to enforce the payment of the principal of and interest on his/her Bond, or the obligation of the County to pay the principal of and interest on each Bond to the Registered Owners thereof at the time and place stated in said Bond or the right of any Counterparty to enforce payment of amounts due under a Hedge Agreement or the obligation of the County to make such payments in accordance with such Hedge Agreement. ARTICLE IX SUPPLEMENTAL ORDINANCES Section 901. Supplemental Ordinance Without Bondholders' Consent. The Board, from time to time and at any time may enact such supplemental ordinances which are compatible with the terms and provisions of this Ordinance, in order to: (a)cure any ambiguity or formal defect or omission or to correct any inconsistent provisions in this Ordinance or in any supplemental ordinance, or (b)grant to or confer upon the Bondholders any additional rights, remedies, powers, authority or security that may lawfully be granted to or conferred upon the Bondholders, or (c)add to the conditions, limitations and restrictions on the issuance of Bonds or the entering of Hedge Agreements under the provisions of this Ordinance other conditions, limitations and restrictions thereafter to be observed, or (d)add to the covenants and agreements of the County in this Ordinance other covenants and agreements thereafter to be observed by the County or to surrender any right or power in this Ordinance reserved to or conferred upon the County, or (e)to make other changes or modifications to the provisions of this Ordinance which are not adverse to the interests of the Bondholders, any Counterparty or any Bond Insurer or Provider of a Reserve Fund Facility or provider of a Credit Facility or Liquidity Facility; or (f)to make any changes required by a Bond Insurer, Provider of a Reserve Fund Facility or provider of a Credit Facility or Liquidity Facility in order for it to issue its Bond Insurance Policy, Reserve Fund Facility, Credit Facility or Liquidity Facility with respect to a particular Series of Bonds, so long as the same does not materially adversely affect the rights of the Registered Owners of any other Series of Bonds Outstanding or any other Bond Insurer or Provider of a Reserve Fund Facility or provider of a Credit Facility or Liquidity Facility. Section 902. Supplemental Ordinance With Bondholders' Consent. Subject to the terms and provisions contained in this Section, and not otherwise, the Holders of not less than two-thirds (2/3) in aggregate principal amount of the Bonds then outstanding shall have the right, from time to time, anything contained in this Ordinance to the contrary notwithstanding, to consent to and approve the enactment of such supplemental ordinance or ordinances as shall be deemed necessary or desirable by the County for the purpose of modifying, altering, amending, adding to or rescinding, in anY particular, any of the terms or provisions contained in this Ordinance or in any supplemental ordinance; provided, however, that nothing in this Section shall permit, or be construed as permitting, (a) an extension of the maturity of the principal of or the interest on any Bonds, or (b) a reduction in the principal amount of, or the redemption premium or the rate of interest on, any Bonds, or (c) the creation of a lien upon or a pledge of the Pledged Funds other than a lien and pledge created by this Ordinance, or (d) a preference or priority of any Bond or Bonds over any other Bond or Bonds, or (e) a reduction in the aggregate principal amount of the Bonds required for consent to such supplemental ordinance. Nothing in this Section, however, shall be construed as making necessary the approval by Bondholders of the enactment of any supplemental ordinance as authorized in Section 901. If the Registered Owners (and Bond Insurers or providers of Credit Facilities who are entitled to act in lieu of Registered Owners) of not less than two-thirds (2/3) of the Bond Obligation at the time of the enactment of such supplemental ordinance shall have consented to and approved its enactment, no Registered Owner of any Bond, Bond Insurer, Provider of any Credit Facility or provider of any Liquidity Facility or Reserve Fund Facility shall have any right to object to the adoption of such supplemental ordinance, or to object to any of its terms and provisions, or in any manner to question the propriety of its enactment, or to enjoin or restrain the Board from enacting the same or from taking any action pursuant to its provisions. Upon the enactment of any supplemental ordinance pursuant to the provisions of this Section, this Ordinance shall be modified and amended in accordance with such supplemental ordinance, and the respective rights, duties and obligations under this Ordinance of the County and all Registered Owners of Bonds then outstanding shall thereafter be determined, exercised and enforced in all respects under the provisions of this Ordinance as so modified and amended. Section 903. Rights of Bond Insurers and Credit Facility Providers. In the event that a Bond Insurance Policy or Credit Facility is in full force and effect as to a Series of Bonds and the Bond Insurer or provider of the Credit Facility is not insolvent and no default under the Bond Insurance Policy or Credit Facility exists on the part of the Bond Insurer or provider of the Credit Facility, as the case may be, then the Bond Insurer or provider of the Credit Facility, in place of the Registered Owners of that Series of Bonds, shall have the power and authority to give any consents and exercise any and all other rights which the Registered Owners of that Series would otherwise have the power and authority to make, give or exercise, including, but not limited to, the exercise of remedies provided in Article VIII, and the giving of consents to supplemental ordinances when required by Section 902, and such consent shall be deemed to constitute the consent of the Registered Owners of all of those Bonds which are secured by such Bond Insurance Policy or Credit Facility. Section 904. Supplemental Ordinances Part of Ordinance. Any supplemental ordinance enacted in accordance with the provisions of this Article and approved as to legality by the County Attorney shall thereafter form a part of this Ordinance, and all of the terms and conditions contained in any such supplemental ordinance shall be part of the terms and conditions of this Ordinance for any and all purposes. Express reference to any supplemental ordinance may be made in the text of any Bonds issued after its enactment, if deemed necessary or desirable by the County. Section 905. Notice of Supplemental Ordinances. The County shall give to the Rating Agencies advance notice of the proposed enactment of any supplemental ordinance, which notice shall include the substantial form of such supplemental ordinance. ARTICLE X DEFEASANCE Section 1001. Defeasance. If, at any time, the County shall have paid or shall have made provision for the payment of the principal, interest and redemption premiums, if any, with respect to the Bonds or any Series or maturity or portion of a maturity of Bonds, and the related fees and charges, then, in that event, the pledge of and lien on the Pledged Funds in favor of the Bondholders of such Bonds, or Series or maturity or portion of maturity of Bonds and all other liens created hereby in favor of such Bondholders, shall no longer be in effect with respect to such Bonds or Series or maturity or portion of maturity of such Bonds. For purposes of the preceding sentence, the deposit of cash, Governmental Obligations or bank certificates of deposit fully secured as to principal and interest by Governmental Obligations (or deposit of any other securities or investments which may be authorized by law from time to time and sufficient under such law to effect such a defeasance) in irrevocable trust with a banking institution or trust company, for the sole benefit of the Bondholders, in an aggregate principal amount which, together with interest to accrue thereon, will be sufficient to make timely payment of the principal, interest, and redemption premiums, if any, on said Bonds, and the paying agent fees and expenses with respect thereto, shall be considered "provision for payment;" notwithstanding the foregoing, "provision for payment" shall not be deemed to have been made if such Bonds are to be redeemed before their maturity, unless notice of such redemption shall have been given according to the requirements of this Ordinance or irrevocable instructions directing the timely publication of such notice and directing the payment of the principal of and interest on all Bonds at such redemption dates shall have been given to the Paying Agent. Nothing in this paragraph shall be deemed to require the County to call any of the Outstanding Bonds for redemption prior to maturity pursuant to any applicable optional redemption provisions, or to impair the discretion of the County in determining whether to exercise any such option for early redemption. If such conditions have been satisfied with respect to all Bonds issued hereunder and then Outstanding, all moneys held in any fund or account created hereby that are in excess of the amounts required to pay or make provision for payment of the principal of, redemption premium, if any, and interest on said Bonds may be withdrawn and used by the County for any lawful purpose. When all amounts due under any Hedge Agreement and any Credit Facility or Liquidity Facility shall have been paid or provided for (in the manner permitted under such Hedge Agreement or Credit Facility or Liquidity Facility), then and only in that case the right, title and interest of the Counterparty or the provider of such Credit Facility or Liquidity Facility in this Ordinance shall thereupon cease, determine and become void. For purposes of this Article X, the amount of interest to accrue on Variable Rate Bonds to maturity or redemption shall be determined by assuming interest on such Bonds will accrue at the maximum rate of interest such Variable Rate Bonds may bear pursuant to the ordinance or resolution authorizing their issuance, or the maximum rate permitted by law if such authorizing ordinance or resolution provides no maximum rate of interest. Notwithstanding any other provision of this Ordinance, including in particular this Article X, the obligation to pay over the Rebate Amount to the United States of America and to comply with all other covenants or agreements by the County established by subsequent resolution to preserve the exclusion from gross income for federal income tax purposes of interest on the Bonds (other than Taxable Bonds) shall survive the defeasance or payment in full of such Bonds. ARTICLE XI MISCELLANEOUS Section 1101. Severability. If any one or more of the covenants, agreements or provisions of this Ordinance should be held contrary to any express provision of law or contrary to the 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 provisions of this Ordinance or of the Series 1996 Bonds issued hereunder. Section 1102. Inconsistent Ordinances. All ordinances and parts of such ordinances which are inconsistent with any of the provisions of this Ordinance are hereby declared to be inapplicable to the provisions of this Ordinance. Section 1103. Further Acts. The officers and agents of the County are hereby authorized and directed to do all acts and things required of them by the Bonds and this Ordinance, for the full, punctual and complete performance of all of the terms, covenants, provisions and agreements contained in the Bonds and this Ordinance. Section 1104. Headings Not Part of Ordinance. Any headings preceding the texts of the several Articles and Sections hereof and any table of contents, marginal notes or footnotes appended to copies of this Ordinance shall be solely for convenience of reference, and shall not constitute a part of this Ordinance, nor shall they affect its meaning, construction or effect. Section 1105. No Third Party Beneficiaries. Nothing in this Ordinance, expressed or implied, is intended or shall be construed to confer upon any person, firm or corporation, other than the County, a Bond Insurer, a Counterparty, a Provider of a Reserve Fund Facility, a provider of a Credit Facility or Liquidity Facility and the Registered Owners of the Bonds issued under and secured by this Ordinance, any right, remedy or claim, legal or equitable, under or by reason of this Ordinance or any of its provisions, this Ordinance and all its provisions being intended to be and being for the sole and exclusive benefit of the County, such Counterparties, Bond Insurers or providers and the Registered Owners from time to time of the Bonds issued hereunder. Section 1106. Application of Florida Law. The Bonds are issued and this Ordinance is enacted with the intent that the laws of the State of Florida shall govern their construction. ARTICLE XII EFFECTIVE DATE Section 1201. Effective Date. This Ordinance shall be effective ten days after its enactment. - PASSED AND ENACTED ON this 2nd day of July, 1996. HEADER TO: Hon. Chairperson and Members DATE: July 2, 1996 Board of County Commissioners SUBJECT: Ordinance Authorizing FROM: Armando Vidal, P.E. Issuance of Public Service County Manager Tax Revenue Refunding Bonds STAFF RECOMMENDATION It is recommended that the Board enact the accompanying Ordinance authorizing the issuance, in one or more series, of Public Service Tax Revenue Refunding Bonds, Series 1996 (the "Series 1996 Bonds") in an aggregate principal amount of not to exceed $70,000,000. This Ordinance further provides for the establishment of terms, maturities, interest rates, issuance of Additional Bonds and Refunding Bonds (collectively, the "Bonds") and other details of the Bonds by subsequent resolutions. The proceeds from the Series 1996 Bonds will be used to: (i) refund the currently outstanding Dade County, Florida Special Obligation and Refunding Bonds, Series 1986 (the "Series 1986 Bonds"); (ii) provide for a Reserve Fund; and (iii) pay for the cost of issuing the Series 1996 Bonds, including the cost of credit enhancement, if applicable and necessary. MANAGER'S BACKGROUND On July 19, 1983, the Board enacted Ordinance No. 83-67 pursuant to which, the County issued the Dade County, Florida Special Obligation and Refunding Bonds, Series 1983A (the "Series 1983 Bonds") to finance certain capital projects and to refund other obligations of the County. On December 2, 1986, the Board enacted Ordinance No. 86-94, pursuant to which, the County issued the Series 1986 Bonds to refund the Series 1983 Bonds. It was determined that in order to achieve debt service savings and modernize the provisions by which the County can issue Public Service Tax revenue bonds in the future, the Series 1986 Bonds would have to be refunded. This Ordinance provides for the issuance of not to exceed $70,000,000 Series 1996 Bonds for the purpose of refunding the Series 1986 Bonds, funding a Reserve Fund and paying the costs associated with the issuance of the Series 1996 Bonds. Additionally, the accompanying Ordinance provides for the establishment of terms, maturities, interest rates and other details of the Bonds by submission of subsequent resolutions to the Board. The Finance & Trust Funds Committee, at its meeting of January 24, 1996, considered this refunding transaction and approved submission to the Board. The Series 1996 Bonds, or any Bonds issued pursuant to this Ordinance, will not constitute an indebtedness, direct obligation or pledge of the full faith and credit of Dade County, but will be payable solely from the levy of the Public Service Tax by the County. |
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