74-HA RESOLUTION SUPPL~!ENTING A RESOLUTION ENTITLED:
"A RESOLUTION PROVIDING FOR THE ACQUISITION AND
CONSTRUCTION OF EXTENSIONS, ADDITIONS, AND IM-
PROV~4ENTS TO THE S~ER SYSTEM~ OF'THE COMBINED
WATER AND SEWER SYSTEM OF THE CITY OF BOYNTON
BEACH, FLORIDA; PROVIDING FOR THE ISSUANCE OF
$6,000,000 REFUNDING AND IMPROVEmeNT REVENUE
BONDS OF SUCH CITY TO PROVIDE FOR THE REFUNDING
OF CERTAIN OUTSTANDING REVENUE OBLIGATIONS OF
THE CITY AND TO P~Y THE COST OF SUCH EXTENSIONS,
ADDITIONS AND IMPROVEMENTS;'PROVIDING FOR THE
RIGHTS OF THE HOLDERS OF SUCH BONDS; AND PRO-
VIDING FOR THE PAYMENT THEREOF; AND ~AKING CER-
TAIN OTHER COVENANTS AND AGREEMENTS IN CO~ECTION
WITH THE ISSUanCE AND SALE OF SUCH BONDS;" AND
PROVIDING FOR THE ISSUANCE OF NOT EXCEEDING
$2,050,000 WATER AND SEI~R REVENUE BONDS, SERIES
1974, OF SUCH CITY.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BOYNTON
BEACH, FLORIDA:
SECTION 1. AUTHORITY FOR THIS RESOLUTION. This Resolu-
tion is adopted pursuant to the charter of the City iof BoYnton
Beach constituting Chapter 24398, Laws of Florida, ActS of 1947,
as ~mended, Chapter 166~ Part II, Florida Statutes, and other appli-
cable provisions of law, and pursuant to Section 14 (L) of a Resolu-
tion entitled:
"A RESOLUTION PROVIDING FOR THE ACQUISITION AND
CONSTRUCTION OF EXTENSIONS, ADDITIONS, AND IM-
PROVEMENTS TO THE SEWER SYSTE~t OF THE COMBINED
WATER AND SEWER SYSTEDI OF THE CITY OF BOYNTON
BEACH, FLORIDA; PROVIDING FOR THE ISSUANCE OF
$6,000,000 P~FU~DING AND-IMPROVEMENT REVE~CJE
BONDS OF SUCH'CITY TO PROVIDE FOR~TIiE REFUNDING
OF CERTAIN OUTSTF~DING REVEi~UE OBLIGATIONS OF
THE CiTY AND TO PAY THE COST OF SUCH EXTENSIONS,
ADDITIONS AA-JD IMPROVE~IENTS; PROVIDING FOR ~HE- -
RIGHTS OF THE HOLDERS OF SUCH BONDS; AND PRO-
VIDING FOR THE PAYMENT THEREOF; AND ~KING CER-
TAIN OTHER COVENANTS AND AGREEMENTS-IN CONNECTION
WITH THE iSSU~JCE AND SALE OF SUCH BONDS"
adopted bY the 9overning body of the City on the 30th day of July,
1964 (hereinafter referred to as "Original Resolution"), and is
supplemental to said Original Resolution.
SECTION 2. DEFINITIONS'. Ail of the definitions contained
in Section 5 of the Original Resolution shall be deemed applicable
to this Supplemental Resolution except to the extent that the same
are inconsistent or in conflict with the definitions set forth be-
low:
A. "Issuer" shall mean the City of Boynton Beach, Florida.
B. "Act" shall'mean Chapter 24398, Laws of Florida, Acts
of 1947, as amended, and Chapter 166, Part II, Florida Statutes.
C. "Obligations" shall mean the $2,050,000 Water and
Sewer Revenue Bonds, Series 1974, herein authorized to be issued,
together with any additional parity obligations heretofore or here-
after issued under the terms, conditions and limitations contained
herein and in the Original Resolution.-
D. "Parity obligations" shall mean the Refunding and Im-
provement Revenue Bonds of the issuer dated June 1, 1964, issued
originally in the amount of $6,000,000, the Water and Sewer Revenue
Bonds~ Series 1969, dated October 1, 1969, issued originally in the
amount of $800,000 and the Water and Sewer Revenue Bonds, Series
1971, issued originally in the amount of $1,000,000.
E. "Fiscal year" shall mean the period commencing on
October 1 of each year and ending on the succeeding 30th day of
September.
F. Words importing singular n~ber shall include the
plural number in each case and vice versa,~ and words importing
persons shall include firms and corporationsm
SECTION 3. FINDINGS. It is hereby ascertained, determined
and declared that:
A. The issuer now owns, operates and maintains a Water
and Sewer System and derives revenues from rates, fees, rentals and
other charges made and collected for the services and facilities of
the Water and Sewer System.
B. It is necessary and desirable to acquire, and construct
extensions, additions and improvements to the Water and Sewer System,
as provided herein (hereinafter called "project"), in order to pre-
serve and protect the public health, safety and welfare of the
habitants of the issuer.
C. The net revenues derived from the operation of said
Water and Sewer System are not now pledged or encumbered in any'
~anner; except that the revenues of the Water System are pledged for
the payment of the principal of and interest on the outstanding bonds
of an original issue of $228,000 Water Revenue Bonds heretofore
issued by the issuer under date of December 1, 1950 (hereinafter
called "Outstanding 1950 Bonds"), and for the payment of certain
non-interest bearing refunding agreements heretofore entered into
by the issuer with various contractors (hereinafter called "Out-
standing Contractors' Refunding Agreements"), which Outstanding
Contractors' Refunding Agreements are payable from the revenues of
a portion of said Water System; and except that the revenues of
said Water and Sewer System are pledged for the payment of the
parity obligations.
D. The Original Resolution, in Section 14 (L) thereof,
provides for the issuance of additional parity Obligations under the
terms, limitations and conditions provided therein.
E. The obligations herein authorized to be issued shall
be on a parity and rank equally, as to lien on and source and security
for payment from the net revenues of the Water and Sewer System and
in all other respects, with the parity obligations.
F. The issuer is authorized to issue the obligations
authorized herein as additional Parity obligations within the au-
thorization contained in Section 14 (L) of the Original Resolution.
G. The estimated net revenues to be derived from the
operation of the Water and Sewer System will be sufficient to pay
all of the principal of and interest on the obligations to be issued
hereunder~ all annual debt service requirements on the Outstanding
1950 Bonds, the Outstanding Contractors' Refunding Agreements, and
the parity obligations, as the same become due, and to make all
required sinking fund~ reserve and other payments.
Ho The principal of and interest on the obliaations and
all required sinking fund, reserve and other payments shall be pay-
able solely from the net revenues derived from the operation of the
Water and Sewer System as herein provided. The issuer shall never be
-3-
required to levy ad valorem taxes on .any property therein to pay
the principal of and interest on the obligations or to make any of
the required sinking fund, reserve or other payments and such
obligations shall not constitute a lien upon any property of or in
the issuer.
SECTION 4. AUTHORIZATION OF CONSTRUCTION AND ACQUISITION
OF PROJECT. There is hereby authorized the construction and acquisi-
tion of the project pursuant to the engineering reports, plans and
specifications of Russell and Axon, Consulting Engineers, presently
on file 'with the issuer. The cost of such project, in addition to
the items set forth in the plans and specifications, may include, but
need not be limited to, the repayment of advances made by the City
for such purposes from the Operating Capital Improvement Fund, the
acquisition of any-lands or interest therein or any other properties
deemed necessary or convenient therefor; engineering, legal and
financing expenses; expenses for estimates of costs and of revenues;
expenses for plans, specifications and surveys; the fees of fiscal
agents~ financial advisors or consultants; a~inistrative expenses
relating solely to the construction and acquisition of the project;
interest upon the obligations herein authorized for one year after
the issuance of the obligations; the creation and establis~u~ent of
reasonable reserves for debt service; a~d such other costs and
expenses as may be necessary or incidental to the financing herein
authorized and the construction and acquisition of the project and
the placing of the same in operation.
SECTION 5. RESOLUTION' TO CONSTITUTE CONTRACT. In
consideration of the acceptance of the obligations authorized to
be issued hereunder by those who shall hold the s~e from time to
time, this Resolution and the Original Resolution shall be deemed
to be and shall constitute a contract between the issuer and such
holders~ The covenants and agreements herein set forth to be per-
formed by the issuer shall be for the equal benefit, protection and
security of the legal holders of any and all of such obligations and
the parity~obligations and the coupons attached thereto, all of which
shall be of equal rank and without preference, priority or distinction
-4-
of any of the obligations or coupons over any other thereof, except
as expressly provided therein and herein.
SECTION 6. AUTHORIZATION OF OBLIGATIONS. Subject and
pursuant to the provisions hereof, obligations of the issuer to be
known as "Water and Sewer Revenue Bonds, Series 1974", herein
sometimes referred to as "obligations" are authorized to be issued
in the aggregate principal amount of not exceeding Two Million Fifty
Thousand Dollars ($2,050,000).
SECTION 7. DESCRIPTION OF OBLIGATIONS. The obligations
shall be dated February 1, 1974; shall be numbered consecutively
from one upward; shall be in the denomination of $5,000 each; shall
bear interest at such rate or rates not exceeding the maximum rate
fixed by the Act or by other applicable law, such interest to be
payable semi-annually on February 1 and August 1 of each year; and
shall mature serially in numerical order, lowest numbers first, on
February 1, in the years and amounts as follows:
YEAR ~4OUNT YEAR ~4OUNT
1976 $ 75,000 1986 $100,000
1977 75,000 1987 100,000
1978 100,000 1988 100,000
1979 100,000 1989 !00,000
1980 100,000 1990 100,000
1981 100,000 1991 100,000
1982 100,00~ 1992 100,000
1983 100,000 1993 100,000
1984 100f000 1994 100,000
1985 100,000 1995 100,000
1996 100,000
Such obligations shall be issued in coupon form; shall be
payable with respect to both principal and interest at a bank or banks
to be subsequently determined by the issuer prior to the delivery of
the obligations; shall be payable in lawful money of the United States
of America; and shall bear interest from their date, payable in ac-
cordance with and upon surrender of the appurtenant interest coupons
as they severally mature.
SECTION 8. EXECUTION OF OBLIGATIONS ~ND COUPONS. The
obligations shall be executed in the name of the issuer by the Mayor
and countersigned and attested by the City Clerk, and its corporate
seal or a facsimile thereof shall be affixed thereto or reproduced
thereon. The facsimile signatures of the Mayor or the City Clerk may
-5-
be imprinted orreproduced on the obligations, provided that at
least one signature required to be placed thereon shall be manu-
ally subscribed. In case any officer whose signature shall appear
on any of the obligations shall cease to be such officer befOre
the delivery of such obligations, such signature or facsimile shall
nevertheless be valid and sufficient for all purposes the same as
if he had remained in office until such delivery. ~my obligation
may be signed and sealed on behalf of the issuer by such person who
at the actual time of the-execution of such obligations shall hold
the proper office with the issuer, although at the date of such
obligations such person may not have held such office or may not
have been so authorized.
The coupons attached to the obligations shall be authenti-
cated with the facsimile signatures of any present or future Mayor
and City Clerk of the issuer, and the validation certificate on the
obligations shall be executed with the facsimile signature of the
Mayor. The issuer may adopt and use for such purposes the facsimile
signatures of any persons who shall have been such Mayor and Cit-y
Clerk at any time on or after the date of the obligations notwith-
standing that they may have ceased to be such officers at the time
such obligations shall be actually delivered.
SECTION 9. NEGOTIABILITY AND REGISTRATION. The obligations
issued hereunder shall be and shall have all of the qualities and
incidents of negotiable instruments under the law merchant and the
Laws of the State of Florida, and each successive holder, in accept-
ing any of such obligations or the coupons appertaining thereto,
shall be conclusively deemed to have agreed that such obligations
shall be and have all of the qualities and incidents of negotiable
instruments under the law merchant and Laws of the State of Florida.
The obligations may be registered at the option of the
holder as to principal only at the office of the City Clerk, as
Registrar, or such other Registrar as may be hereafter duly appointed~
such registration to be noted on the back of the obligations in the
space provided therefor. After such registration as to principal only,
no transfer of the obligations shall be valid unless made at such
-6-
office by written assignment of the registered owner, or by his.duly
authorized attorney in a form satisfactory-to the Registrar, and
similarly noted on the obligations, but the obligations may be dis-
charged from registration by being in like manner transferred to
bearer and thereupon transferability by delivery shall be restored.
At the option of the holder, the obligations may thereafter again
from time to time be registered or transferred to bearer as before.
Such registration as to principal only ~shall not affect the negoti-
ability of the coupons which shall continue to pass by delivery.
SECTION 10. OBLIGATIONS ~TILATED, DESTROYED, STOLEN OR
LOST. In case any obligation shall become mutilated, or be destroyed,
stolen or lost, ~he issuer may in its discretion issue and deliver a
new obligation with all unmatured coupons attached, if any, of like
tenor as the obligation and attached coupons~ if any, so mutilated,
destroyed, stolen or lost, in exchange and substitution for such
mutilated obligation, upon surrender and cancellation of such muti-
lated obligation and attached coupons, if any, or in lieu of and
substitution for the obligation and attached coupons, if any, des-
troyed, stolen or lost, and upon the holder furnishing' the issuer
proof of his ownership thereof and satisfactory indemnity and comply-
ing with such o~her reasonable regulations and conditions as the
issuer may prescribe and paying such expenses as the issuer may incur.
All obligations and coupons so surrendered shall be cancelled by the
Clerk of the issuer. If any such obligations or coupons shall have
matured or be about to mature, instead of issuing a substitute obli-
gation or coupon, the issuer may pay the same, upon being indemnified
as aforesaid, and if such obligation or coupon be lostr stolen or
destroyed, withoutsurrender thereof.
Any such duplicate obligations and coupons issued pursuant
to this section shall constitute original, additional contractual
obligations on the part of the issuer whether or not the lost, stolen
or destroyed obligations or coupons be at any time found by anyone,
and any such duplicate obligations and coupons shall be entitled to
equal and proportionate benefits and rights as to lien on and source
and security for payment from the funds, as hereinafter pledged, to
the same extent as all other obligations and coupons issued hereunder.
SECTION 11. PROVISIONS FOR REDEMPTION. The obligations of
this issue maturing in the years 1976 to 1985, inclusive, shall not
beredeemable prior to maturity. The obligations maturing in the
years 1986 to 1996, inclusive, shall be redeemable on or after
February 1, 1985 at the option of the issuer, in whole on.any date,
and in part on any interest payment date, in the inverse order of
their maturities, and if less than all of the obligations of any one
maturity shall be called for redemption then the particular obliga-
tions to be redeemed shall be selected by lot, at the principal
amount of the obligations to be redeemed plus accrued interest to
the date fixed for redemption, plus a premi~ of one-fourth of one
per centum (1/4 of 1%) of the par value thereof for each
Period, or fraction thereof from the date fixed for redemption to
the stated date of maturity of the obligations so called for re-
demption~ such premium, however, not to eXceed~~per centum
of the par value thereof.
Notice of such redemption shall be published at least
thirty (30) days prior to the redemption date in a financial journal
published in the Borough of ~4anhattan~ City and State of New York.
Interest shall cease to accrue on any obligations duly called for
prior redemption on the redemption date, if payment thereof has
been duly provided.
SECTION 12. CITY ATTO~EY. The City Attorney shall
certify on the face of each obligation that such obligation and the
attached coupons have been approved by him as to form and correct-
ness.
SECTION 13. FO~ OF OBLIGATIONS DieD COUPONS. The obliga-
tions, the interest coupons to be attached thereto, and ~%e certifi-
cate of validation shall be in substantially the following form,
with such omissions, insertions and variations as may be necessary
and desirable and authorized or permitted by this Resolution or in
any subsequent Resolution adopted prior to the issuance thereof:
NO. $5~000
UNITED STATES OF A~RICA
STATEOF FLORIDA
COUNTY OF PALM BEACH
CITY OF BOYNTON BEACH
WATER AND SEWER.REVENUE BOND,
SERIES 1974
KNOW ALL MEN BY TtIESE PRESENTS, that the City of Boynton
Beach, Florida, (hereinafter called "City"), for value received,
hereby promises to pay to the bearer, or if this bond be registered,
to the registered holder as herein provided, on the first day of
February, 19__, from the special funds hereinafer mentiOned, the
principal sum of
FIVE THOUSAND DOLLARS
and to pay solely from such special funds, interest thereon from
~%e date hereof at the rate of per centum
( %) per annum until pa~ent of the principal sum, such interest
to the maturity hereof being payable semi-annually on the first day
of February and the first day of August in each year upon the pre-
sentation and surrender of the annexed coupons as they severally
fall due. Both principal of and interest on this bond are payable
in lawful money of the United States of America at
, or, at the option of the holder at
This bond is one of an authorized issue of bonds in the
aggregate principal amount of $2,050,000 of like date, tenor and
effect, except as to n~m~er, interest rate and date of maturity,
issued to finance the cost of the construction and acquisition of
extensions, additions and improvements to the Water and Sewer System
of the City (hereinafter called "Water and Sewer System"), under the
authority of and in full compliance with the Constitution and Statutes
of the State of Florida, including particularly Chapter 24398~ Laws
of Florida, Acts of 1947, as amended, Chapter 166, Part II, Florida
Statutes, and other applicable provisions of law, and a resolution
duly adopted by the City on the 30th day of July, 1964, as supple-
mented by a resolution duly adopted on the day of ,
1974 (hereinafter collectively called "Resolution"), and is subject
to all the terms and conditions of such Resolution.
It is provided in such Resolution that the bonds of this
issue will rank on a'parity with certain outstanding Refunding and
'Improvement Revenue Bonds of the City, d~ted june 1,'1964, outstand-
ing Water and Sewer Revenue Bonds, Series 1969, dated October 1, 1969,
and outstanding Water and Sewer Revenue Bonds, Series 19~71, dated
December 1, 1971 (hereinafter called "parity obligations") as to lien
and source of security. This bond, the parity obligations and the
coupons appertaining thereto are payable solely from and secured by a
lien upon and pledge of the net revenues derived by the City from the
operation of the Water and Sewer System; subject, however, to the
prior lien thereon of certain outstanding obligations more partic-
ularly described in the Resolution, in the manner provided in the
Resolution ................ ~ .....
The bonds of this issue maturing in the years 1976 to 1985,
inclusive, shall not be redeemable prior, to maturity. The bonds
maturing in the years 1986 to 1996, inclusive, shall be redeemable
on or after February 1, 1985, at the option of the City, in whole on
any date, and in part on any interest payment date, in the inverse
order of their maturities, and if less than all of the bonds of any
one maturity shall be called for redemption then the particular bonds
to be redeemed shall be selected by lot, at the principal amount of
the bonds to be redeemed plus accrued interest to the date fixed for
redemption~ plus a premium of one-fourth of one per centum (1/4 o'f 1%)
of the par value thereof for each .~0ns.~ye~r~ period, or fraction
thereof from the date fixed for redemption to the stated date of
maturity of the bonds so called for redemption, such premium, how-
ever, not to exceeded' per centum !~) of the par value thereof.
Notice of such redemption shall be given in ~e manner
required by the Resolution.
This bond does not constitute an indebtedness of the City
within the meaning of any constitutional, statutory or charter pro-
vision or limitation, and it is expressly agreed by the holder of
this bond and the coupons appertaining thereto that such holder shall
never have the right to require or compel the exercise of the ad
valorem taxing power of the City for the payment of the principal of
and interest on this bond or the making of any sinking fund, reserve
or other pas~ents provided for in the Resolution.
It is further agreed between the Cit~ and the holder
of this bond that this bond and the obligation evidenced thereby
shall not constitute alien upon 'the Water and Sewer System, or any
part thereof, or on any other property of or in the City, but shall
constitute a lien only on the net revenues derived from the operation
of the Water and Sewer System in the manner provided in the Resolu-
tion.
The City, in the Resolution, has covenanted and agreed
with the holders of the bonds of this issue to fix, establish and
maintain such rates and collect such fees, rentals or other charges
for the services of the facilities of the Water and Sewer System
and to revise the same from time to time whenever necessary, as will
always provide funds in each year sufficient to pay all costs of
operation and maintenance of the Water and Sewer SyStem in such year,
one hundred twenty-five per centum (125%) of the maximum annual debt
service requirements for the bonds of this issue, and certain other
outstanding revenue obligations described in the Resolution, and on
all other obligations payable on a parity therewith in any succeeding
year~ and that such rates, fees, rentals or other charges shall not
be reduced so as to be insufficient to provide adequate revenues for
such purposes; and the City has entered into certain further covenants
with the holders of the bonds of this issue for the terms of which
reference is made to the Resolution.
It is hereby certified and recited that all acts, conditions
and things required to exist, to happen and to be performed precedent
to and in the issuance of this bond, exist, have happened and have
been performed in regular and due form and time as required by the
Laws and Constitution of the State of Florida applicable ~lereto, and
that the issuance of the bonds of this issue does not violate any
constitutional or statutory limitation or provision.
This bond, and the coupons appertaining thereto are and have
all the qualities and incidents of a negotiable instrument under the
law merchant and the Laws of the State of Florida.
This bond may be registered as to principal only, in accor-
dance with the provisions endorsed hereon.
IN WITNESS ~EREOF, the City of Boynton Beach, Florida,
has issued this bond and has caused the same to be sSgned by its
-11-
Mayor, and attested and countersigned by its City Clerk· either
manually or with their facsimile signatures· and the corporate
seal of said City or a facsimile thereof to be affixed· impressed,
imprinted, lithographed or reproduced hereon and the interest coupons
hereto attached to be executed with the facsimile signatures of such
officers all as of the 1st day of February, 1974.
CITY OF BOYNTON BEACH· FLORIDA
(SEAL)
ATTESTED AND COUNTERSIGNED:
Mayor
City Clerk
The foregoing bond and attached
coupons have been approved by
me as to form and correctness.
No.
FO~M OF COUPON
On the 1st day of
· 19
Beach, Florida, will pay to the bearer at
City Attorney
$
the City of Boynton
, or at the option of ~he holder, at
, from the special funds described in the
bond to which this coupon is attached, the s~ount shown hereon, in
lawful money of the United States of America, upon presentation ~nd
surrender of this coupon, being six months' interest then due on its
Water and Sewer Revenue Bond~ Series 1974~ dated February 1, 1974.
CITY OF BOYNTON BEACH, FLORIDA
(SEAL)
ATTESTED AND COUNTERSIGNED:
Mayor
City Clerk
(To be inserted in coupons maturing after callabe date)
"Unless the bond to which this coupon is attached s~all have been
-12-
previously duly called for prior redemption and payment thereof
duly made or provided for."
· VALIDATION CERTIFICATE
This bond is one of a series of bonds which were validated
and confirmed by judgment of the Circuit Court for Palm Beach County,
Florida rendered on the day of _, 1974.
Mayor
PROVISION FOR REGISTRATION
This bond may be registered in the name of the holder on
the books to be kept by ~he City Clerk as Registrar, or such other
Registrar as may be hereafter duly appointed, as to principal only·
such registration being noted hereon by such Registrar in the regis-
tration blank below, after which no transfer shall ba valid unless
made on said books by the registered holder or attorney duly author-
ized and similarly noted in the registration blank below, but it may
be discharged from registration by being transferred to bearer,
after which it Shall be transferable by delivery, but it may be
again registered as before. The registration of this bond as to
principal shall not restrain the negotiability of the coupons by
delivery merely.
DATE OF IN ~OSE N~;~ SIGNATURE OF
REGISTRATION P~GISTERED REGISTRAR
SECTION 13. APPLICATION OF PROVISIONS OF THE ORIGINAL
RESOLUTION. The obligations, herein authorized, shall for all
purposes (exceptas herein expressly changed) be considered to be
additional parity obligations issued under the authority of Section
14 (L) of the Original Resolution, and shall be entitled to all the
protection and security provided therein for the parity obligations,
as respectively issued and Shall be in all respects entitled to the
same security, rights and privileges enjoyed by the parity obliga-
tions.
The obligations herein authorized and the coupons represent-
ing interest thereon shall not be or constitute an indebtedness of
the issuer within the meaning of any constitutional or statutory
limitation of indebtedness, but shall be payable solely from and
secured by a lien upon the net revenues of the Water and Sewer System
herein provided for and in the Original Resolution, isubject only to
the prior lien thereon of ~he Outstandi~g 1950 Bonds~ and of the
Outstanding Contractors' Refunding Agreements. No holder of
any of the obligations or of the coupons shall ever have the right to
compel the exercise of the ad valorem taxing power of the issuer or
taxation in any form on real property therein for payment thereof,
but the obligations and couTons shall be secured by a pledge of and
be payable from the.net revenues of the Water and Sewer System as
provided herein and in the Original Resolution.
The covenants and pledges contained in Section 14 of the
Origi~a! Resolution, shall be applicable to the obligations herein
authorized in like manner as applicable to the parity obligations.
The principal of, interest on and redemption premiums on the obliga-
tions herein authorized shall be payable from the Sinking Fund
heretofore established on a parity with the parity obligations, and
payments shall be made into such Sinking Fund by the issuer in amounts
fully sufficient to pay the principal of and interest on the parity
obligations and on the obligations herein authorized as such principal
and interest become due.
The reserve account established in the Original Resolution
shall be applicable prorata to the obligations herein authorized
in the same manner as applicable to the parity obligations~
Commencing with the fifteenth day of the first full
calendar month following the delivery of the obligations, payments
into the Reserve Account in the Sinking Fund shall be increased by
depositing into said Reserve Account, on the fifteenth day of each
month in each year, an amount equal to-one-twelfth of twenty per
centum (1/12 of 20%) of the largest amount of principal of and in-
terest on the obligations and the parity obligations, and any ob-
ligations hereafter issued on a parity therewith pursuant to Section
14 (L) of the Original Resolution, becoming due in any ensuing year.
.No further payments shall be required to be made into said Reserve
Account when there has been deposited therein and as long as there
shall remain on deposit therein an amount eqUal to the largest amount
of principal of and interest on the obligations and the parity obli-
gations, and any obligations hereafter issued on a parity therewith
pursuant to Section 14 (L) of the Original Resolution, becoming due
in any ensuing year.
SECTION 15. A/RBITRAGE. No use will be made of the pro-
ceeds of the obligations which will cause the same to be "ar~bitra~e
bonds'~ within the meaning of the Internal Revenue Code. The issuer
at all times while the obligations and the interest thereon are
outstanding will comply with the requirements of Section 103(d) of
the Internal Revenue Code and any valid and applicable rules and
regulations of the Internal Revenue Service.
SECTION 16. APPLICATION OF PROCEEDS OF OBLIGATIONS. All
moneys received from the sale of the obligations shall be deposited
by the issuer in a special account in a bank or trust company, and
applied by the issuer as follows:
Ao All interest accrued or to accrue on the obligations
for one year after delivery of the obligations shall be deposited
in the Sinking Fund.
B. Moneys in said special fund shall next be used to
reimburse the Operating Capital Improvement Fund of the City for any
advances made from'said fund for the construction or acquisition of
the improvements herein authorized.
C. The issuer shall next use the moneys in said special
fund to pay all engineering fees, legal fees, fees of financial
advisors, cost of the issuanCe of the obligations, and all other
similar costs incurred in connection with the acquisition and con-
struction of the project and the issuance of the obligations to
finance the cost thereof.
D. A special fund is hereby created, established and
designated as the "1974 Water and Sewer System Construction Fund"
(herein called the "Construction Fund"). There shall be paid into
the Construction Fund the balance of the moneys remaining after
making all the deposits and payments provided for in paragraphs A~
B and C above.
Such fund shall be kept separate and apart from all other
accounts of the issuer, and the moneys on deposit therein shall be
withdra%~, used and applied by the issuer solely to the payment of
the cost of the project and purposes incidental thereto, as herein-
above described and set forth° If for any reason such proceeds or
any part thereof are not necessary for or are not applied to the
payment of such cost, then the unapp!ied proceeds shall be deposited
by the issuer in the Reserve Account in the Sinking Fund. All
such proceeds shall be and constitute trust funds for such Purposes,
and there is hereby created a lien upon such moneys until so applied
in favor of the holders of the obligations.
Any funds on deposit in the Construction Fund which, in the
opinion of the issuer, acting upon the recommendation of the con-
sulting engineers, are not immediately necessary for expenditures as
hereinabove provided, may be invested and reinvested in direct ob-
ligations of the United States of America or in certificates of
deposit in banks or trust comp~nies~ maturing in a period of 2 years
or less. All such securities shall be held by the depository bank,
and all income derived therefrom shall be deposited in the Sinking
Fund.
Ail expenditures or disbursements from ~e Construction
Fund shall be made only after such expenditures or disbursements
shall have been approved in writing by the consulting engineer and
the City Manager. The date of completion of the project shall be
determined by the consulting engineers~ ~lo will certify such facts
in writing to the governing body of the issuer.
SECTION 17. MODIFICATION OR A~NDMENT. No material modi-
fication or amendment of this Resolution or of any resolution
or ordinance amendatory hereof or supplemental hereto may be made
without the consent in writing of the holders of two-thirds or more
in the principal amount of ~3he obligations then Outstanding; providedr
however, that no modification or amendment shall permit a change in
the maturity of such obligations or reduction in the rate of interest
thereon or in the amount of the principal obligation thereof or af-
fecting the promise of the issuer to pay the principal of and interest
on the obligations as the same shall become due from the revenues of
the Water and Sewer System or reduce the percentage of the holders
of the obligations required to consent to any material modification
or amendment hereof without the consent of the holder or holders of
all such obligations.
SECTION 18. SEVERABILITY OF INVALID PRovISIONS. If any
one or more of the covenants, agreements or provisions herein con-
tained shall be held contrary to any express provision of law or
contrary to the. policy of express law, though not expressly pro-
hibited, 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 shal~ be deemed separable from the remaining
covenants, agreements or provisions and shall in no way affect the
validity of any of the other provisions hereof or of the obligations
or coupons issued hereunder.
SECTION 19o SALE OF OBLIGATIONS. The obligations shall
be issued and sold in such manner and at such price or prices con-
sistent with the Act, all at one time or in installments from time
to time, as shall be hereafter determined by the governing body of
the issuer.
SECTION 20. VALIDATION AUTHORIZED. The Attorney for the
issuer is authorized and directed to prepare and file proceedings
to validate the obligations in the manner provided by law.
SECTION 21. P~PEALING CLAUSE. All Resolutions or parts
thereof of the issuer in conflict with the provisions herein con-
tained are, to the extent of such conflict, hereby superseded and
repealed.
-17-
SECTION 221
effect in the manner provided by law.
PASSED AND ADOPTED this ~5~ day of
1974.
EFFECTIVE DATE. This Resolution shall take
A.D.,
CITY OF BOYNTON BEACH, FLORIDA
Vice Mayor
ATTEST:
Counciiman
(com. SEAL)
-18-