93-R-14RESOLUTION NO. 93-R-199
A RESOLUTION AMENDING RESOLUTION NO. 98-R-10
OF THE CITY OF EDGEWATER, FLORIDA. AS
SUPPLEMENTED, 80 AS TO CONFORM CERTAIN
PROVISIONS OF THE RESOLUTION WITH THE
RE9uIREMENTS OF THE COMMITMENT LETTER.
DATED JUNE S. 2993 OF THE INSURER; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Council of the City of Edgewater. Florida (the "Issuer") has,
by Resolution No. 93-R-10, duly adopted on June 3, 1993, as supplemented (the
"Authorizing Resolution") authorized the issuance of Water and Sewer Revenue
Refunding Bonds, Series 1993 of the Issuer In the aggregate principal amount of
$12.460.000 (the "Bonds'; and
WHEREAS, the Issuer has received from Municipal Bond Investors Assurance
Corporation (the "Insurer"), a commitment, dated June 3, 1993. to Insure the payment
of principal and interest on the Bonds (the "Commitment"); NOW THEREFORE,
WHEREAS, the Issuer desires to modify the Authorizing Resolution so as to
precisely conform certain provisions with the requirements of the Commitment; and
WHEREAS, the Issuer has determined that the amendments to the Authorizing
Resolution are not "materially adverse to the owners of the Bonds" within the meaning
of Section 19 of the Authorizing Resolution; NOW THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EDGEWATER,
FLORIDA:
Section 1. AMENDMENTS TO AUTHORIZING RESOLUTION. The
Authorizing Resolution is hereby amended, as follows:
(a) Subparagraph (10) of the following definition in Section 2 of the
Authorizing Resolution is hereby amended in its entirety to read as follows:
"Authorized Investments" shall mean any of the following If and
to the extent the same are at the time legal for investment of municipal
funds:
(10) Repurchase agreements which provide for the transfer of
securities from a dealer bank or securities Arm (seller/borrower) to the
Issuer (buyer/lender), and the transfer of cash from the Issuer to the
dealer bank or securities Arm with an agreement that the dealer bank or
securities firm will repay the cash plus a yield to the Issuer in exchange
for the securities at a specified date. Repurchase agreements must
satisfy the following criteria or be approved by the Insurer.
(a) The agreement must be between the issuer
and a dealer bank or securities firm described below:
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(i) Primary dealers on the Federal Reserve
Reporting dealer list which are rated A or better by Standard & Poor's
Corporation and Moody's Investor Services, or
(fi) Banks rated "A" or above by Standard &
Poor's Corporation and Moody's Investor Services.
(b) The written contract must include the
following:
(i) Securities which are acceptance for
transfer are:
(1) Direct U.S. governments, or
(2) Federal agencies backed by the
full faith and credit of the U.S. government (and FNMA & FHLMC)
(it) The term of the agreement may be up to
30 days
(fir) The collateral must be delivered to the
Issuer before or simultaneously with payment (perfection by possession
of certificated securities).
(iv) The securities must be valued weekly,
marked -to market at current market price plus accrued interest. The
value of collateral must be equal to 104% of the amount of cash
transferred by the Issuer to the dealer bank or security firm under the
agreement plus accrued interest. If the value of securities held as
collateral drops below 104% of the value of the cash transferred by
municipality, then additional cash and/or acceptable securities must be
transferred. If, however, the securities used as collateral are FNMA or
FHLMC, then the value of the collateral must equal 105%.
(c) A legal opinion must be delivered to the Issuer
to the effect that the repurchase agreement meets guidelines under state
law for legal investment of public funds."
(b) Section 15C.(6)(d) of the Authorizing Resolution is hereby amended in its
entirety to read as follows:
"(d) Notwithstanding the foregoing
provisions, in lieu of the required deposits of Gross Revenues into the
Reserve Account. the Issuer may with the prior written consent of the
Insurer cause to be deposited into the Reserve Account for any series of
Bonds a surety bond. a letter of credit or an insurance policy issued by a
reputable and recognized insurer for the benefit of the Owners in an
amount equal to the difference between the Reserve Requirement and the
sums then on deposit in the Reserve Account, if any, which surety bond,
letter of credit or insurance policy shall be payable (upon the giving of
notice as required thereunder) on any interest payment date on which a
deficiency exists which cannot be cured by funds in arty other fund or
account held pursuant to this Resolution and available for such purpose.
The insurer providing such surety bond or insurance policy shall be an
insurer whose municipal bond insurance policies insuring the payment,
when due, of the principal of and interest on municipal bond issues
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results in such issues being rated In the highest rating category by either
Standard & Poor's Corporation and Moody's Investors Service, Inc., or
their successors or any insurer who holds the highest policyholder rating
accorded insurers by A.M. Best & Co. or any comparable service. The
bank providing such letter of credit shall be a bank which Is rated In the
highest rating category by either Standard & Poor's Corporation and
Moody's Investors Service, or their successors. If a disbursement is
made from a surety bond, letter of credit or an insurance policy provided
pursuant to this paragraph, the Issuer shall be obligated to either
reinstate the maximum limits of such surety bond, letter of credit or
insurance policy Immediately following such disbursement or to deposit
into the Reserve Account, as herein provided in this paragraph (6)(d) for
restoration of withdrawals from the Reserve Account. funds in the
amount of the disbursement made under such policy, or a combination
of such alternatives."
Section 2. RESOLUTION TO REMAIN IN EFFECT. Except as expressly
amended herein, the Authorizing Resolution shall remain in full force and effect.
Section 3. SEVERABILITY OF INVALID PROVISIONS. If any one or more of
the covenants, agreements, or provisions herein contained shall 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 separable from the remaining covenants, agreements or provisions
and shall in no way affect the validity of any of the other provisions hereof.
Section 4. REPEALING CLAUSE. All ordinances and resolutions or parts
thereof of the Issuer in conflict with the provisions herein contained are, to the extent
of such conflict, hereby superseded and repealed.
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Section 5. Effective Date. This resolution shall take
effect immediately upon its adoption.
After Motion by Councilman Jones and Second by
Councilwoman Martin , the vote on this resolution was as
follows:
Mayor Jack H. Hayman, Sr. AYE
Councilman Kirk Jones AYE
Councilwoman Louise A. Martin AYE
Councilman Mike Hays AYE
Councilman
David L.
Mitchum
AYE
PASSED AND DULY
ADOPTED
this 19th
day
of
July, 1993.
ATTEST:
-4-
CITY COUNCIL OF THE
CITY OF EDGEWATER, FLORIDA
By:
Jack H. ay an, Sr.
Mayor