Resolution 13-12 Exhibit A. Indenture of Trust v INDENTURE OF TRUST
by and among
CITY OF ATLANTIC BEACH, FLORIDA
and
U.S. BANK NATIONAL ASSOCIATION,
AS BOND TRUSTEE
Dated as of October 1, 2013
RELATING TO
CITY OF ATLANTIC BEACH, FLORIDA
HEALTH CARE FACILITIES REVENUE BONDS
(FLEET LANDING PROJECT),
SERIES 2013B
4826-1827-9445.4.
TABLE OF CONTENTS
Page
ARTICLE I
DEFINITIONS
SECTION 1.01. DEFINITIONS 14
SECTION 1.02. RECITAL INCORPORATION 14
ARTICLE II
AUTHORIZATION, TERMS, EXECUTION AND ISSUANCE OF BONDS
SECTION 2.01. AUTHORIZED AMOUNT OF BONDS 15
SECTION 2.02. ALL BONDS EQUALLY AND RATABLY SECURED,
BONDS NOT AN OBLIGATION OF ISSUER 15
SECTION 2.03. AUTHORIZATION OF BONDS 15
SECTION 2.04. EXECUTION OF BONDS, SIGNATURES 16
SECTION 2.05. REGISTRATION AND EXCHANGE OF BONDS;
PERSONS TREATED AS OWNERS 16
SECTION 2.06. LOST, STOLEN, DESTROYED, AND MUTILATED
BONDS 17
SECTION 2.07. DELIVERY OF BONDS 18
SECTION 2.08. BOND TRUSTEE'S AUTHENTICATION CERTIFICATE 19
SECTION 2.09. NO ISSUANCE OF ADDITIONAL BONDS 19
SECTION 2.10. CANCELLATION AND DESTRUCTION OF BONDS BY
THE BOND TRUSTEE 19
SECTION 2.11. BOOK ENTRY ONLY SYSTEM 19
SECTION 2.12. SUCCESSOR SECURITIES DEPOSITORY; TRANSFERS
OUTSIDE BOOK ENTRY ONLY SYSTEM 20
SECTION 2.13. PAYMENTS TO CEDE & CO 21
ARTICLE III
REVENUES AND FUNDS
SECTION 3.01. APPLICATION OF PROCEEDS OF BONDS 22
SECTION 3.02. CREATION OF THE BOND FUND 22
SECTION 3.03. PAYMENTS INTO THE BOND FUND 22
SECTION 3.04. USE OF MONEYS IN THE PRINCIPAL ACCOUNT AND
THE INTEREST ACCOUNT 22
SECTION 3.05. CUSTODY OF THE BOND FUND 23
SECTION 3.06. PROJECT FUND 23
SECTION 3.07. COMPLETION CERTIFICATE 23
SECTION 3.08. CREATION OF THE RESERVE FUND 24
4826-1827-9445.4.
SECTION 3.09. PAYMENTS INTO THE RESERVE FUND 24
SECTION 3.10. USE OF MONEYS IN THE RESERVE FUND 24
SECTION 3.11. CUSTODY OF THE RESERVE FUND 25
SECTION 3.12. NONPRESENTMENT OF BONDS 25
SECTION 3.13. BOND TRUSTEE'S AND PAYING AGENTS' FEES,
CHARGES, AND EXPENSES 26
SECTION 3.14. MONEYS TO BE HELD IN TRUST 26
SECTION 3.15. REPAYMENT TO THE OBLIGOR FROM THE FUNDS 26
SECTION 3.16. REBATE FUND 27
SECTION 3.17. COST OF ISSUANCE FUND 29
ARTICLE IV
COVENANTS OF THE ISSUER
SECTION 4.01. PERFORMANCE OF COVENANTS; AUTHORITY 30
SECTION 4.02. PAYMENTS OF PRINCIPAL, PREMIUM, IF ANY, AND
INTEREST 30
SECTION 4.03. SUPPLEMENTAL INDENTURES; RECORDATION OF
BOND INDENTURE AND SUPPLEMENTAL
INDENTURES 30
SECTION 4.04. LIEN OF BOND INDENTURE 31
SECTION 4.05. RIGHTS UNDER THE LOAN AGREEMENT 31
SECTION 4.06. TAX COVENANTS 31
SECTION 4.07. CHANGE IN LAW 32
SECTION 4.08. PROGRAM INVESTMENT 32
ARTICLE V
REDEMPTION OF BONDS
SECTION 5.01. OPTIONAL REDEMPTION OF BONDS 34
SECTION 5.02. SINKING FUND REDEMPTION 34
SECTION 5.03. METHOD OF SELECTION OF BONDS IN CASE OF
PARTIAL REDEMPTION; REDEMPTION PRIORITY 35
SECTION 5.04. NOTICE OF REDEMPTION 35
SECTION 5.05. BONDS DUE AND PAYABLE ON REDEMPTION DATE;
INTEREST CEASES TO ACCRUE 36
SECTION 5.06 CANCELLATION 37
SECTION 5.07. PARTIAL REDEMPTION OF FULLY REGISTERED
BONDS 37
SECTION 5.08. EXTRAORDINARY OPTIONAL REDEMPTION 37
ii
4826-1827-9445.4.
ARTICLE VI
INVESTMENTS
SECTION 6.01. INVESTMENT OF BOND FUND, PROJECT FUND AND
RESERVE FUND MONEYS 38
SECTION 6.02. ALLOCATION AND TRANSFERS OF INVESTMENT
INCOME 38
SECTION 6.03. VALUATION OF PERMITTED INVESTMENTS 39
ARTICLE VII
DISCHARGE OF BOND INDENTURE
SECTION 7.01. DISCHARGE OF THE BOND INDENTURE 41
ARTICLE VIII
DEFAULTS AND REMEDIES
SECTION 8.01. EVENTS OF DEFAULT 43
SECTION 8.02. REMEDIES ON EVENTS OF DEFAULT 43
SECTION 8.03. MAJORITY OF BONDHOLDERS MAY CONTROL
PROCEEDINGS 44
SECTION 8,04. RIGHTS AND REMEDIES OF BONDHOLDERS 45
SECTION 8.05. APPLICATION OF MONEYS 46
SECTION 8.06. BOND TRUSTEE MAY ENFORCE RIGHTS WITHOUT
BONDS 47
SECTION 8.07. BOND TRUSTEE TO FILE PROOFS OF CLAIM IN
RECEIVERSHIP, ETC 47
SECTION 8.08. DELAY OR OMISSION NO WAIVER 48
SECTION 8.09. DISCONTINUANCE OF PROCEEDINGS ON DEFAULT,
POSITION OF PARTIES RESTORED 48
SECTION 8.10. ENFORCEMENT OF RIGHTS 48
SECTION 8.11. UNDERTAKING FOR COSTS 49
SECTION 8.12. WAIVER OF EVENTS OF DEFAULT 49
ARTICLE IX
CONCERNING THE BOND TRUSTEE AND PAYING AGENTS
SECTION 9.01. DUTIES OF THE BOND TRUSTEE 50
SECTION 9.02. FEES AND EXPENSES OF BOND TRUSTEE AND
PAYING AGENT 54
SECTION 9.03. RESIGNATION OR REPLACEMENT OF BOND TRUSTEE 54
SECTION 9.04. CONVERSION, CONSOLIDATION OR MERGER OF
BOND TRUSTEE 55
SECTION 9.05. DESIGNATION AND SUCCESSION OF PAYING AGENT 56
4826-1827-9445.4.
ARTICLE X
SUPPLEMENTAL INDENTURES AND AMENDMENTS TO THE LOAN
AGREEMENT
SECTION 10.01. SUPPLEMENTAL INDENTURES NOT REQUIRING
CONSENT OF BONDHOLDERS 57
SECTION 10.02. SUPPLEMENTAL INDENTURES REQUIRING CONSENT
OF BONDHOLDERS 57
SECTION 10.03. EXECUTION OF SUPPLEMENTAL INDENTURE 58
SECTION 10.04. CONSENT OF OBLIGOR 59
SECTION 10.05. AMENDMENTS, ETC., OF THE LOAN AGREEMENT
NOT REQUIRING CONSENT OF BONDHOLDERS 59
SECTION 10.06. AMENDMENTS, ETC., OF THE LOAN AGREEMENT
REQUIRING CONSENT OF BONDHOLDERS 59
ARTICLE XI
MISCELLANEOUS
SECTION 11.01. EVIDENCE OF SIGNATURE OF BONDHOLDERS AND
OWNERSHIP OF BONDS 61
SECTION 11.02. NO PERSONAL LIABILITY 61
SECTION 11.03. LIMITED OBLIGATION 62
SECTION 11.04. PARTIES INTERESTED HEREIN 62
SECTION 11.05. TITLES, HEADINGS, ETC 62
SECTION 11.06. SEVERABILITY 62
SECTION 11.07. GOVERNING LAW 62
SECTION 11.08. EXECUTION OF COUNTERPARTS 62
SECTION 11.09. CONSEQUENTIAL/PUNITIVE DAMAGES 62
SECTION 11.10. WAIVER OF JURY TRIAL 62
SECTION 11.11. NO LIABILITY OF BOND TRUSTEE'S OFFICERS 63
SECTION 11.12. NOTICES 63
SECTION 11.13. PAYMENTS DUE ON HOLIDAYS 64
iv
4826-1827-9445.4.
INDENTURE OF TRUST
THIS INDENTURE OF TRUST dated as of October 1, 2013, between CITY OF
ATLANTIC BEACH, a municipality duly organized and existing under the laws of the
State of Florida (the "Issuer"), and U.S. BANK NATIONAL ASSOCIATION, a national
banking association with trust powers in the State of Florida having an office in
Jacksonville, Florida, as bond trustee (the "Bond Trustee"), being authorized to accept
and execute trusts of the character herein set out,
WITNESSETH
WHEREAS, the Issuer is an incorporated municipality organized and existing
under the laws of the State of Florida, and a "local agency" under and pursuant to
Chapter 159, Part II, Florida Statutes, as amended and supplemented (the "Act"); and
WHEREAS, the Issuer has determined to issue a series of Bonds hereunder,
designated "City of Atlantic Beach, Florida Health Care Facilities Revenue Bonds (Fleet
Landing Project), Series 2013B" (hereinafter called the "Bonds") in the Aggregate
Principal Amount of$17,610,000 for the purpose of loaning the proceeds and providing
funds to the Naval Continuing Care Retirement Foundation, Inc. (the "Obligor") to (a)
pay or reimburse the cost (i) the acquisition of approximately 0.5 acres of land located at
2935 Mayport Road, Atlantic Beach, Florida immediately adjacent to Fleet Landing, for
future use in connection with the operation of Fleet Landing, (ii) the acquisition,
construction and installation of renovations to the existing 80-bed skilled nursing center
which will reduce the number of skilled nursing beds to approximately 64 beds and
increase the number of private rooms, (ii) acquisition, construction and installation of a
one-story building containing approximately 20,000 square feet to house a 24-unit
memory care facility, (iii) the acquisition, construction and installation of a one-story
building containing approximately 7,200 square feet to be used as a facility operations
and maintenance center, (iv) the acquisition, construction and installation of the
expansion of and renovations to the existing outpatient clinic and outpatient therapy
spaces; (v) the acquisition, construction and installation of renovations to the Annex
building; (vi) the acquisition, construction and installation of renovations to the Coleman
Center's dining establishment; (vii) the acquisition and installation of a campus-wide
fiber optic and wireless network; and (viii) the acquisition, construction and installation
of related facilities, improvements, fixtures, furnishings and equipment in connection
with the foregoing and other capital improvements and expenditures to be used in
connection with the operation of Fleet Landing, all located or to be located at Fleet
Landing, One Fleet Landing Boulevard, in the City of Atlantic Beach, Florida, and all of
which is owned and operated or to be owned and operated by the Company (collectively,
the "Project"). and (b) pay costs and fund necessary reserves associated with the issuance
of the Bonds; and
1
4826-1827-9445.4.
WHEREAS, the Issuer has found and determined, and does hereby find and
determine, that in order to increase the commerce, welfare and prosperity of the
inhabitants of the Issuer and the citizens of Duval County and the State of Florida, and to
improve their health and living conditions by providing access to adequate medical care
and health care facilities, it has become necessary for the Issuer to issue the Bonds
pursuant to the Act and this Bond Indenture for the purposes set forth in the preceding
paragraph;
WHEREAS, the proceeds of the Bonds shall be loaned to the Obligor pursuant to
a Loan Agreement dated as of October 1, 2013 (the "Loan Agreement") between the
Issuer and the Obligor; and
WHEREAS, to secure the payment of the principal of the Bonds, premium, if
any, and the interest thereon and the performance and observance of the covenants and
conditions herein contained the Issuer has authorized the execution and delivery of this
Bond Indenture; and
WHEREAS, the execution and delivery of this Indenture of Trust (hereinafter
sometimes referred to as the "Bond Indenture"), and the issuance of the Bonds hereinafter
authorized under this Bond Indenture, pursuant to the provisions of the Act, have been in
all respects duly and validly authorized by a resolution duly adopted and approved by the
Issuer; and
WHEREAS, the Bonds, the Bond Trustee's authentication certificate and the
assignment are to be substantially in the following forms, with such necessary or
appropriate variations, omissions, and insertions as permitted or required by this Bond
Indenture:
* * * [BEGIN FORM OF BOND] * * *
CITY OF ATLANTIC BEACH, FLORIDA
HEALTH CARE FACILITIES REVENUE BONDS
(FLEET LANDING PROJECT),
SERIES 2013B
No. R- $
Interest Rate Maturity Date Delivery Date Dated CUSIP No.
October 24, 2013 October 24, 2013
REGISTERED OWNER:
PRINCIPAL AMOUNT: DOLLARS
2
4826-1827-9445.4.
The CITY OF ATLANTIC BEACH, a municipality duly organized and existing
under the laws of the State of Florida (the "Issuer"), for value received, promises to pay,
from the sources described herein, to the Registered Owner specified above, or registered
assigns, the principal amount specified above, on the maturity date specified above
(unless this Bond shall have been called for prior redemption) and to pay, from such
sources, interest on said sum on May 15 and November 15 of each year, commencing
May 15, 2014, at the interest rate specified above, until payment of the principal hereof
has been made or provided for. This Bond will bear interest from the most recent interest
payment date to which interest has been paid or provided for, or, if no interest has been
paid, from the Delivery Date of this Bond.
THE STATE OF FLORIDA AND ANY POLITICAL SUBDIVISION OR
AGENCY OF THE STATE OF FLORIDA, INCLUDING DUVAL COUNTY,
FLORIDA ("DUVAL COUNTY") SHALL NOT BE LIABLE OR OBLIGATED
(GENERALLY, SPECIALLY, MORALLY OR OTHERWISE) TO PAY THE
PRINCIPAL OF THIS BOND OR THE PREMIUM, IF ANY, OR INTEREST
HEREON, EXCEPT WITH RESPECT TO THE ISSUER AND SOLELY FROM THE
SOURCES IDENTIFIED IN THE BOND INDENTURE AND LOAN AGREEMENT
HEREINAFTER IDENTIFIED AND NEITHER THE FAITH AND CREDIT NOR THE
TAXING POWER OF THE ISSUER, DUVAL COUNTY, THE STATE OF FLORIDA,
OR ANY OTHER POLITICAL SUBDIVISION OR AGENCY THEREOF IS
PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF, PREMIUM, IF ANY, OR
INTEREST ON THE BONDS.
This Bond and the series of Bonds of which it is a part have been issued under and
pursuant to the Chapter 159, Part II, Florida Statutes, and other applicable provisions of
law (the "Act"). This Bond is a limited obligation of the Issuer payable solely from the
revenues, receipts and resources of the Issuer pledged to its payment and not from any
other revenues, funds or assets of the Issuer. No owner of any Bonds has the right to
compel the Issuer to pay the principal of, interest or redemption premium, if any, on the
Bonds, except from such sources.
The principal of and premium, if any, on this Bond are payable upon the
presentation and surrender hereof at the St. Paul, Minnesota, trust office of U.S. Bank
National Association, as bond trustee, or at the designated corporate trust office of its
successor in trust (the "Bond Trustee") under an Indenture of Trust dated as of October 1,
2013 (the "Bond Indenture") by and between the Issuer and the Bond Trustee. Interest on
this Bond will be paid on each interest payment date (or, if such interest payment date is
not a business day, on the next succeeding business day), by check or draft mailed to the
person in whose name this Bond is registered (the "Registered Owner") in the registration
records of the Issuer maintained by the Bond Trustee at the address appearing thereon at
the close of business on the last day of the calendar month next preceding such interest
3
4826-1827-9445.4.
payment date (the "Regular Record Date") or by wire transfer of same day funds upon
receipt by the Bond Trustee prior to the Regular Record Date of a written request by a
Registered Owner of $1,000,000 or more in aggregate principal amount of Bonds. The
CUSIP number and appropriate dollar amounts for each CUSIP number shall accompany
all payments of principal of, redemption premium, if any, and interest on the Bonds. Any
such interest not so timely paid or duly provided for shall cease to be payable to the
person who is the Registered Owner hereof at the close of business on the Regular
Record Date and shall be payable to the person who is the Registered Owner hereof at the
close of business on a Special Record Date (as defined in the hereinafter defined Loan
Agreement), for the payment of any defaulted interest. Such Special Record Date shall
be fixed by the Bond Trustee whenever moneys become available for payment of the
defaulted interest, and notice of the Special Record Date shall be given to the Registered
Owners of such Bonds not less than ten days prior to such Special Record Date.
Alternative means of payment of interest may be used if mutually agreed upon between
the owner of this Bond and the Bond Trustee, as provided in the Bond Indenture. All
such payments shall be made in lawful money of the United States of America without
deduction for the services of the Bond Trustee.
This Bond shall be issued pursuant to a book entry system administered by The
Depository Trust Company (together with any successor thereto, "Securities
Depository"). The book entry system will evidence beneficial ownership of the Bonds
with transfers of ownership effected on the register held by the Securities Depository
pursuant to rules and procedures established by the Securities Depository. So long as the
book entry system is in effect, transfer of principal, interest and premium payments, and
provisions of notices or other communications, to beneficial owners of the Bonds will be
the responsibility of the Securities Depository as set forth in the Bond Indenture.
This Bond is one of a duly authorized series of bonds of the Issuer dated October
1, 2013, known as "City of Atlantic Beach, Florida Health Care Facilities Revenue Bonds
(Fleet Landing Project), Series 2013B" (the "Bonds") and issued in an Aggregate
Principal Amount (as defined in the hereinafter defined Loan Agreement) of$17,610,000
for the purpose of providing funds to be loaned to the Naval Continuing Care Retirement
Foundation, Inc., a Florida nonprofit corporation (the "Obligor"), to be used to finance
the cost of capital improvements to a continuing care retirement community located in
the City of Atlantic Beach, Florida (the "Project"), to fund a debt service reserve fund and
to pay a portion of the cost of issuance.
To provide for its loan repayment obligations, the Obligor has issued its Note (the
"Note") under a Loan Agreement dated as of October 1, 2013, between the Issuer and the
Obligor (the "Loan Agreement"). The Note is issued pursuant to a Master Trust
Indenture dated as of April 1, 2013, as supplemented (the "Master Indenture"), between
the Obligor and U.S. Bank National Association, as master trustee (the "Master Trustee").
Pursuant to the Master Indenture, and a First Supplemental Mortgage and Security
4
4826-1827-9445.4.
Agreement and Notice of Future Advance dated as of April 1, 2013, from the Obligor to
the Master Trustee (the "Mortgage"), the Obligor has pledged and granted a security
interest in, among other things, the Gross Revenues (as defined in the Master Indenture)
and the Mortgaged Property (as defined in the Mortgage) to the Master Trustee to secure
the Note. Additional obligations on a parity with the Note may be issued pursuant to the
Master Indenture subject to the conditions and terms contained therein, and the payments
on such additional obligations will also be secured by a pledge of the Gross Revenues,
the Mortgaged Property and certain other property.
This Bond and the claims for interest hereon are payable only out of the revenues
derived by the Issuer pursuant to the Loan Agreement. The Bonds are issued under and
are equally and ratably secured and are entitled to the protection given by the Bond
Indenture.
No recourse under or upon any obligation, covenant, or agreement contained in the
Bond Indenture, or in any Bond, or under any judgment obtained against the Issuer or by
the enforcement of any assessment or by any legal or equitable proceeding by virtue of
any constitution or statute or otherwise or under any circumstances, under or independent
of the Bond Indenture, shall be had against any director, incorporator, officer, agent,
employee, or representative as such, past, present or future, of the Issuer, either directly
or through the Issuer or otherwise, for the payment for or to the Issuer or for or to the
Registered Owner of any Bond issued thereunder or otherwise, of any sum that may be
due and unpaid by the Issuer upon any such Bond.
Neither the elected officials, officers, agents, employees or representatives of the
Issuer past, present or future, nor any person executing this Bond or the Bond Indenture,
shall be personally liable hereon or thereon or be subject to any personal liability by
reason of the issuance hereof and thereof, whether by virtue of any constitution, statute or
rule of law or by the enforcement of any assessment or penalty, or otherwise, all such
liability being expressly released and waived as a condition of and in consideration for
the execution of the Bond Indenture and the issuance of this Bond.
Reference is hereby made to the Bond Indenture and all indentures supplemental
thereto and the Master Indenture for a description of the revenues pledged, the nature and
extent of the security, the rights, duties, and obligations of the Issuer, the Bond Trustee
and the owners of the Bonds, and the terms and conditions upon which the Bonds are,
and are to be, secured.
The Bonds are subject to optional redemption prior to maturity by the Issuer at the
direction of the Obligor in whole or in part on November 15, 2023 or on any date
thereafter, at the redemption price equal to the principal amount of such Bonds to be
redeemed, together with accrued interest to the redemption date.
5
4826-1827-9445.4.
The Bonds are subject to mandatory sinking fund redemption at a redemption
price equal to the principal amount thereof plus accrued interest to the redemption date.
As and for a sinking fund for the redemption of Bonds, the Issuer shall cause to be
deposited into the Principal Account of the Bond Fund a sum which is sufficient to
redeem on November 15 of each of the following years (after credit as provided below)
the following principal amounts plus accrued interest to the redemption date:
Year Principal Amount
2038 $2,550,000
2039 2,690,000
2040 2,845,000
2041 3,005,000
2042 3,170,000
2043* 3,350,000
*Stated Maturity
At the option of the Obligor to be exercised by delivery of a written certificate to
the Bond Trustee on or before the forty-fifth day next preceding any sinking fund
redemption date, it may (i) deliver to the Bond Trustee for cancellation Bonds or portions
thereof of the same maturity, in an Aggregate Principal Amount desired by the Obligor,
or (ii) specify a principal amount of Bonds or portions thereof of the same maturity,
which prior to said date have been redeemed (otherwise than through the operation of the
sinking fund) and canceled by the Bond Trustee at the request of the Obligor and not
theretofore applied as a credit against any sinking fund redemption obligation.
The Bonds shall be subject to optional redemption by the Issuer at the direction of
the Obligor prior to their scheduled maturities, in whole or in part at a redemption price
equal to the principal amount thereof plus accrued interest from the most recent interest
payment date to the redemption date on any date following the occurrence of any of the
following events:
(1) in case of damage or destruction to, or condemnation of, any
property, plant, and equipment of any Obligated Group Member, to the extent that
the net proceeds of insurance or condemnation award exceed the Threshold
Amount (as defined in the Master Indenture) and the Obligor has determined not
to use such net proceeds or award to repair, rebuild or replace such property, plant,
and equipment; or
6
4826-1827-9445.4.
(2) as a result of any changes in the Constitution or laws of the State of
Florida or of the United States of America or of any legislative, executive, or
administrative action (whether state or federal) or of any final decree,judgment, or
order of any court or administrative body (whether state or federal), the
obligations of the Obligor under the Loan Agreement have become, as established
by an Opinion of Counsel, void or unenforceable in each case in any material
respect in accordance with the intent and purpose of the parties as expressed in the
Loan Agreement.
If less than all Bonds are to be optionally redeemed, the Obligor may select the
maturities eligible for redemption which are to be redeemed. If less than all Bonds of a
single maturity are to be redeemed, the selection shall be made by the Securities
Depository or by lot by the Bond Trustee. Notice of the call for any redemption shall be
given by the Bond Trustee by sending a copy of the redemption notice by mail not more
than 60 nor less than 30 days prior to the redemption date to the Registered Owner of
each Bond to be redeemed as shown on the registration records kept by the Bond Trustee,
as provided in the Bond Indenture. All Bonds or portions thereof called for redemption
will cease to bear interest after the specified redemption date, provided funds for their
payment are on deposit at the place of payment at that time.
The Bonds are issuable as fully registered Bonds in denominations of$5,000 and
any integral multiple thereof and are exchangeable for an equal Aggregate Principal
Amount of fully registered Bonds of the same maturity of other authorized denominations
at the aforesaid office of the Bond Trustee but only in the manner and subject to the
limitations and on payment of the charges provided in the Bond Indenture.
This Bond is fully transferable by the Registered Owner hereof in person or by his
or her or its duly authorized attorney on the registration books kept at the principal office
of the Bond Trustee upon surrender of this Bond together with a duly executed written
instrument of transfer satisfactory to the Bond Trustee. Upon such transfer a new fully
registered Bond of authorized denomination or denominations for the same Aggregate
Principal Amount and maturity will be issued to the transferee in exchange herefor, all
upon payment of the charges and subject to the terms and conditions set forth in the Bond
Indenture.
The Bond Trustee will not be required to transfer or exchange any Bond after the
mailing of notice calling such Bond or any portion thereof for redemption has been given
as herein provided, nor during the period beginning at the opening of business 15 days
before the day of mailing by the Bond Trustee of a notice of prior redemption and ending
at the close of business on the day of such mailing.
The Issuer and the Bond Trustee may deem and treat the person in whose name
this Bond is registered as the absolute owner hereof for the purpose of making payment
(except to the extent otherwise provided hereinabove and in the Bond Indenture with
7
4826-1827-9445.4.
respect to Regular and Special Record Dates for the payment of interest) and for all other
purposes, and neither the Issuer nor the Bond Trustee shall be affected by any notice to
the contrary. The principal of, premium, if any, and interest on this Bond shall be paid
free from and without regard to any equities between the Obligor and the original or any
intermediate owner hereof, or any setoffs or counterclaims.
The owner of this Bond shall have no right to enforce the provisions of the Bond
Indenture or to institute action to enforce the covenants therein, or to take any action with
respect to any event of default under the Bond Indenture, or to institute, appear in or
defend any suit or other proceedings with respect thereto, except as provided in the Bond
Indenture. In case an event of default under the Bond Indenture shall occur, the principal
of all of the Bonds at any such time Outstanding under the Bond Indenture may be
declared or may become due and payable, upon the conditions and in the manner and
with the effect provided in the Bond Indenture. The Bond Indenture provides that such
declaration may in certain events be waived by the Bond Trustee or the owners of a
requisite principal amount of the Bonds Outstanding under the Bond Indenture.
To the extent permitted by, and as provided in, the Bond Indenture, modifications
or amendments of the Bond Indenture, or of any indenture supplemental thereto, and of
the rights and obligations of the Issuer and of the owners of the Bonds may be made with
the consent of the Issuer and the Bond Trustee and, in certain instances, of not less than a
majority in Aggregate Principal Amount of the Bonds then Outstanding; provided,
however, that no such modification or amendment shall be made which will affect the
terms of payment of the principal of, premium, if any, or interest on any of the Bonds,
which are unconditional. Any such consent by the owner of this Bond shall be
conclusive and binding upon such owner and upon all future owners of this Bond and of
any Bond issued upon the transfer or exchange of this Bond whether or not notation of
such consent is made upon this Bond.
IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts,
conditions and things required to exist, happen and be performed precedent to and in the
execution and delivery of the Bond Indenture and issuance of this Bond do exist, have
happened and have been performed in due time, form and manner as required by law.
THIS BOND shall not be entitled to any benefit under the Bond Indenture, or any
indenture supplemental thereto, or become valid or obligatory for any purpose until the
Bond Trustee shall have manually signed the certificate of authentication hereon.
8
4826-1827-9445.4.
IN WITNESS WHEREOF, the City of Atlantic Beach, Florida has caused this
Bond to be executed with the manual or facsimile signatures of its Mayor and City
Manager, and a facsimile of its corporate seal to be hereto affixed or printed, all as of the
date set forth above.
CITY OF ATLANTIC BEACH, FLORIDA
By:
Mayor
(SEAL)
Attest:
City Manager
9
4826-1827-9445.4.
(FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION)
This is one of the Bonds referred to in the within mentioned Bond Indenture.
Date of Authentication: U.S. BANK NATIONAL ASSOCIATION,
as Bond Trustee
By:
Authorized Signatory
(END OF FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION)
10
4826-1827-9445.4.
(FORM OF ASSIGNMENT)
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
the within Bond, and does hereby irrevocably
constitute and appoint attorney to transfer such Bond
on the books kept for registration and transfer of the within Bond, with full power of
substitution in the premises.
Date:
NOTICE: The signature to this
Assignment must correspond with the
name as it appears upon the face of the
within Bond in every particular, without
enlargement or alteration or any change
whatsoever.
Signature Guaranteed By:
Authorized Signatory
NOTE: The signature to this Assignment must be guaranteed by a financial
institution that is a member of the Securities Transfer Agents Medallion Program
("STAMP"), the Stock Exchange Medallion Program ("SEMP") or the New York Stock
Exchange, Inc. Medallion Signature Program ("MSP").
* * * [END OF BOND FORM] * * *
11
4826-1827-9445.4.
WHEREAS, all things necessary to make the Bonds, when authenticated by the
Bond Trustee and issued as in this Bond Indenture provided, the valid, binding, and legal
limited and special obligations of the Issuer and to constitute this Bond Indenture a valid,
binding, and legal instrument for the security of the Bonds in accordance with its terms,
have been done and performed.
NOW, THEREFORE, THIS INDENTURE OF TRUST WITNESSETH:
That the Issuer, in consideration of the premises and of the mutual covenants
herein contained and of the purchase and acceptance of the Bonds by the owners thereof
and of the sum of One Dollar to it duly paid by the Bond Trustee at or before the
execution and delivery of these presents, and for other good and valuable consideration,
the receipt of which is hereby acknowledged, in order to secure the payment of the
principal of, premium, if any, and interest on all Bonds at any time Outstanding under
this Bond Indenture, according to their tenor and effect, and to secure the performance
and observance of all the covenants and conditions in the Bonds and herein contained,
and to declare the terms and conditions upon and subject to which the Bonds are issued
and secured, has executed and delivered this Bond Indenture and has granted, bargained,
sold, warranted, alienated, remised, released, conveyed, assigned, pledged, set over, and
confirmed, and by these presents does grant, bargain, sell, warrant, alien, remise, release,
convey, assign, pledge, set over, and confirm unto the Bond Trustee, and to its successors
and assigns forever, all and singular the following described property, franchises, and
income:
A. All of the Issuer's right, title and interest in and to the Note delivered by the
Obligor to the Issuer pursuant to the Loan Agreement; and
B. All of the Issuer's right, title and interest in and to the Loan Agreement
(except for the rights of the Issuer to receive payments, if any, under Sections 5.7, 7.5,
and 9.5 of the Loan Agreement), together with all powers, privileges, options and other
benefits of the Issuer contained in the Loan Agreement; provided, however, that nothing
in this clause shall impair, diminish or otherwise affect the Issuer's obligations under the
Loan Agreement or, except as otherwise provided in this Bond Indenture, impose any
such obligations on the Bond Trustee; and
C. Amounts on deposit from time to time in the Bond Fund, Cost of Issuance
Fund, Reserve Fund and Project Fund, but excluding the Rebate Fund (all as defined in
the Loan Agreement), subject to the provisions of this Bond Indenture permitting the
application thereof for the purposes and on the terms and conditions set forth herein; and
D. Any and all property of every kind or description which may from time to
time hereafter be sold, transferred, conveyed, assigned, hypothecated, endorsed,
deposited, pledged, mortgaged, granted or delivered to, or deposited with the Bond
Trustee as additional security by the Issuer or anyone on its part or with its written
12
4826-1827-9445.4.
consent, or which pursuant to any of the provisions hereof or of the Loan Agreement or
any Note may come into the possession of or control of the Bond Trustee or a receiver
appointed pursuant to Article VIII hereof, as such additional security (except amounts
held in the Rebate Fund); and the Bond Trustee is hereby authorized to receive any and
all such property as and for additional security for the payment of the Bonds, and to hold
and apply all such property subject to the terms hereof.
TO HAVE AND TO HOLD the same with all privileges and appurtenances
hereby conveyed and assigned, or agreed or intended to be, to the Bond Trustee and its
successors in said trust and assigns forever;
IN TRUST, NEVERTHELESS, upon the terms herein set forth for the equal and
proportionate benefit, security, and protection of all owners of the Bonds issued under
and secured by this Bond Indenture without privilege, priority, or distinction as to the lien
or otherwise of any of the Bonds over any other of the Bonds;
PROVIDED, HOWEVER, that if the Issuer, its successors or assigns, shall pay,
or cause to be paid, the principal of the Bonds and the premium, if any, and the interest
due or to become due thereon, at the times and in the manner mentioned in the Bonds
according to the true intent and meaning thereof, and shall cause the payments to be made
into the Bond Fund as hereinafter required or shall provide, as permitted hereby, for the
payment thereof by depositing with the Bond Trustee the entire amount due or to become
due hereon, or certain securities as herein permitted and shall keep, perform, and observe
all the covenants and conditions pursuant to the terms of this Bond Indenture to be kept,
performed, and observed by it, and shall pay or cause to be paid to the Bond Trustee all
sums of money due or to become due to it in accordance with the terms and provisions
hereof, then upon such final payments this Bond Indenture and the rights hereby granted
shall cease, determine, and be void; otherwise this Bond Indenture to be and remain in
full force and effect.
THIS BOND INDENTURE FURTHER WITNESSETH and it is expressly
declared that all Bonds issued and secured hereunder are to be issued, authenticated, and
delivered and all said rights hereby pledged and assigned are to be dealt with and
disposed of under, upon, and subject to the terms, conditions, stipulations, covenants,
agreements, trusts, uses, and purposes as hereinafter expressed, and the Issuer has agreed
and covenanted, and does hereby agree and covenant, with the Bond Trustee and with the
respective owners from time to time of the Bonds as follows:
[END OF PREAMBLE]
13
4826-1827-9445.4.
ARTICLE I
DEFINITIONS
SECTION 1.01. DEFINITIONS. All defined words and phrases used in this
Bond Indenture shall have the meaning given and ascribed to such words and phrases in
Article I of the Loan Agreement or Article I of the Master Indenture.
SECTION 1.02. RECITAL INCORPORATION. The recitals set forth in
the beginning of this Bond Indenture are hereby incorporated herein.
14
4826-1827-9445.4.
ARTICLE II
AUTHORIZATION, TERMS, EXECUTION AND ISSUANCE OF BONDS
SECTION 2.01. AUTHORIZED AMOUNT OF BONDS. No Bonds may be
issued under this Bond Indenture except in accordance with this Article. The total
principal amount of Bonds that may be issued hereunder is hereby expressly limited to
$17,610,000, except as provided in Section 2.06 hereof.
SECTION 2.02. ALL BONDS EQUALLY AND RATABLY SECURED,
BONDS NOT AN OBLIGATION OF ISSUER. All Bonds issued under this Bond
Indenture and at any time Outstanding shall in all respects be equally and ratably secured
hereby, without preference, priority, or distinction on account of the date or dates or the
actual time or times of the issuance or maturity of the Bonds, so that all Bonds at any
time issued and Outstanding hereunder shall have the same right, lien, and preference
under and by virtue of this Bond Indenture, and shall all be equally and ratably secured
hereby. The Bonds shall be payable solely out of the revenues and other security pledged
hereby and shall not constitute an indebtedness of the Issuer within the meaning of any
state constitutional provision or statutory limitation and shall never constitute nor give
rise to a pecuniary liability of the Issuer.
SECTION 2.03. AUTHORIZATION OF BONDS.
(a) There is hereby authorized to be issued hereunder and secured hereby a series
of bonds designated as the "City of Atlantic Beach, Florida Health Care Facilities
Revenue Bonds (Fleet Landing Project), Series 2013B." The Bonds shall be numbered
consecutively upward from R-1.
(b) The Bonds shall bear interest from the most recent interest payment date to
which interest has been paid or provided for, or, if no interest has been paid, from the
Delivery Date of the Bonds. The Bonds shall bear interest on the basis of a 360 day year
composed of twelve 30 day months payable each May 15 and each November 15,
commencing May 15, 2014, at the rates per annum and shall mature on November 15 of
each year, in the principal amounts and at the interest rates set forth on each Bond.
(c) The Bonds shall be issued in Authorized Denominations and shall be dated
April 1, 2013. The Bonds are subject to prior redemption as herein set forth and shall be
substantially in the form and tenor hereinabove recited with appropriate variations,
omissions, and insertions as are permitted or required by this Bond Indenture.
(d) The principal of and premium, if any, on the Bonds shall be payable in
lawful money of the United States of America at the Payment Office of the Bond Trustee,
or at the designated corporate trust office of its successor, upon presentation and
surrender of the Bonds. Payment of interest on any Bond shall be made to the person
who is the Registered Owner thereof at the close of business on the Regular Record Date
15
4826-1827-9445.4.
for such Interest Payment Date by check mailed by the Bond Trustee on such Interest
Payment Date to such Registered Owner at his or her address as it appears on the
registration records kept by the Bond Trustee or by wire transfer of same day funds upon
receipt by the Bond Trustee prior to the Regular Record Date of a written request by a
Registered Owner of $1,000,000 or more in aggregate principal amount of Bonds. The
CUSIP number and appropriate dollar amounts for each CUSIP number shall accompany
all payments of principal, premium, if any, and interest on the Bonds. Any such interest
not so timely paid or duly provided for shall cease to be payable to the person who is the
Registered Owner of such Bond at the close of business on the Regular Record Date and
shall be payable to the person who is the Registered Owner thereof at the close of
business on a Special Record Date for the payment of any such defaulted interest. Such
Special Record Date shall be fixed by the Bond Trustee whenever moneys become
available for payment of the defaulted interest, and notice of the Special Record Date
shall be given to the Registered Owners of the Bonds not less than ten days prior thereto
by first class postage prepaid mail to each such Registered Owner as shown on the
registration records, stating the date of the Special Record Date and the date fixed for the
payment of such defaulted interest. Alternative means of payment of interest may be
used if mutually agreed upon between the owners of any Bonds and the Bond Trustee.
All such payments shall be made in lawful money of the United States of America.
Notwithstanding the foregoing, payments of the principal of and interest on any
Bonds that are subject to the book entry system as provided in Article II of this Bond
Indenture shall be made in accordance with the rules, regulations and procedures
established by the securities depository in connection with the book entry system.
SECTION 2.04. EXECUTION OF BONDS, SIGNATURES. The Bonds
shall be executed on behalf of the Issuer by its Chairman and its seal shall be thereunto
affixed and attested by the Secretary. The signatures of such officers and the seal of the
Issuer may be in facsimile. In case any officer who shall have signed any of the Bonds
shall cease to hold such office and any of such Bonds shall have been authenticated by
the Bond Trustee or delivered or sold, such Bonds with the signatures thereto affixed
may, nevertheless, be authenticated by the Bond Trustee, and delivered, and may be sold
by the Issuer, as though the person or persons who signed such Bonds had remained in
office.
SECTION 2.05. REGISTRATION AND EXCHANGE OF BONDS;
PERSONS TREATED AS OWNERS. The Issuer shall cause books for the registration
and for the transfer of the Bonds as provided in this Bond Indenture to be kept by the
Bond Trustee which is hereby appointed the bond registrar of the Issuer for the Bonds.
Upon surrender for transfer of any fully registered Bond at the Payment Office of the
Bond Trustee, duly endorsed for transfer or accomplished by an assignment duly
executed by the Registered Owner or his attorney duly authorized in writing, the Issuer
shall execute and the Bond Trustee shall authenticate and deliver in the name of the
16
4826-1827-9445.4.
transferee or transferees a new fully registered Bond or Bonds of a like Aggregate
Principal Amount for a like principal amount and maturity.
The Issuer shall execute and the Bond Trustee shall authenticate and deliver Bonds
which the Bondholder making the exchange is entitled to receive, bearing numbers not
contemporaneously Outstanding. The execution by the Issuer of any fully registered
Bond of any denomination shall constitute full and due authorization of such
denomination and the Bond Trustee shall thereby be authorized to authenticate and
deliver such Bond.
The Bond Trustee shall not be required to transfer or exchange any Bond after the
mailing of notice calling such Bond or any portion thereof for redemption has been given
as herein provided, nor during the period beginning at the opening of business fifteen
days before the day of mailing by the Bond Trustee of a notice of prior redemption and
ending at the close of business on the day of such mailing except for Bondholders of
$1,000,000 or more in aggregate principal amount of the Bonds.
As to any Bond, the Person in whose name the same shall be registered shall be
deemed and regarded as the absolute owner thereof for all purposes, and payment of
principal of or interest on any Bond shall be made only to or upon the written order of the
Registered Owner thereof or his legal representative, but such registration may be
changed as hereinabove provided. All such payments shall be valid and effectual to
satisfy and discharge the liability upon such Bond to the extent of the sum or sums paid.
The Bond Trustee shall require the payment by any Bondholder requesting
exchange or transfer of any tax or other governmental charge required to be paid with
respect to such exchange or transfer.
SECTION 2.06. LOST, STOLEN, DESTROYED, AND MUTILATED
BONDS. Upon receipt by the Bond Trustee of evidence satisfactory to it of the
ownership of and the loss, theft, destruction, or mutilation of any Bond and, in the case of
a lost, stolen, or destroyed Bond, of indemnity satisfactory to it, and upon surrender and
cancellation of the Bond if mutilated, (i) the Issuer shall execute, and the Bond Trustee
shall authenticate and deliver, a new Bond of the same series, date and maturity as the
lost, stolen, destroyed or mutilated Bond in lieu of such lost, stolen, destroyed, or
mutilated Bond, or (ii) if such lost, stolen, destroyed, or mutilated Bond shall have
matured or have been called for redemption, in lieu of executing and delivering a new
Bond as aforesaid, the Issuer may pay such Bond. Any such new Bond shall bear a
number not contemporaneously Outstanding. The applicant for any such new Bond may
be required to pay all expenses and charges of the Issuer and of the Bond Trustee in
connection with the issue of such new Bond. All Bonds shall be held and owned upon
the express condition that, to the extent permitted by law, the foregoing conditions are
exclusive with respect to the replacement and payment of mutilated, destroyed, lost, or
stolen Bonds, negotiable instruments, or other securities. If, after the delivery of such
17
4826-1827-9445.4.
new Bond, a bona fide purchaser of the original Bond in lieu of which such duplicate
Bond was issued presents for payment such original Bond, the Obligor or the Bond
Trustee shall be entitled to recover upon such new Bond from the person to whom it was
delivered or any person taking therefrom, except a bona fide purchaser, and shall be
entitled to recover upon the security or indemnity provided therefor to the extent of any
loss, damage, cost or expense incurred by the Obligor or the Bond Trustee in connection
therewith.
SECTION 2.07. DELIVERY OF BONDS. Upon the execution and delivery
of this Bond Indenture, the Issuer shall execute and deliver to the Bond Trustee and the
Bond Trustee shall authenticate the Bonds and deliver them to the initial purchasers
thereof as directed by the Issuer and as hereinafter in this Section provided.
Prior to the delivery by the Bond Trustee of any of the Bonds there shall be filed
with and delivered to the Bond Trustee at least:
(a) A certified resolution of the Issuer authorizing the execution and delivery
of the Loan Agreement, this Bond Indenture and the issuance of the Bonds.
(b) Original executed counterparts of the Loan Agreement, this Bond
Indenture, the Collateral Assignment, the Mortgage, the Tax Compliance Agreement, the
Continuing Disclosure Agreement, the Supplemental Indenture and the Master Indenture.
(c) The Note, duly executed and authenticated and duly assigned and payable
to the Bond Trustee.
(d) A request and authorization to the Bond Trustee on behalf of the Issuer and
signed by its Chairman to authenticate and deliver the Bonds to the purchasers therein
identified upon payment to the Bond Trustee but for the account of the Issuer of a sum
specified in such request and authorization plus accrued interest thereon to the date of
delivery, together with instructions (which may be in the form of a separate certificate) as
to the disposition of the proceeds of the Bonds.
(e) An Opinion of Bond Counsel addressed to the Bond Trustee (or a reliance
letter therefor) to the effect that the Bonds have been duly and validly authorized, issued
and delivered and constitute valid and binding obligations of the Issuer, enforceable
against the Issuer in accordance with their terms, that the interest payable on the Bonds is
excludable from gross income for federal income tax purposes and that each of the
instruments to which the Issuer is a party has been duly and validly authorized, executed
and delivered by the Issuer and constitutes the legal, valid and binding obligation of the
Issuer, enforceable against the Issuer in accordance with its terms, subject to customary
qualifications on enforceability.
18
4826-1827-9445.4.
SECTION 2.08. BOND TRUSTEE'S AUTHENTICATION
CERTIFICATE. The Bond Trustee's authentication certificate upon the Bonds shall be
substantially in the form and tenor hereinbefore provided. No Bond shall be secured
hereby or entitled to the benefit hereof, or shall be valid or obligatory for any purpose,
unless the certificate of authentication, substantially in such form, has been duly executed
by the Bond Trustee and such certificate of the Bond Trustee upon any Bond shall be
conclusive evidence and the only competent evidence that such Bond has been
authenticated and delivered hereunder. The Bond Trustee's certificate of authentication
shall be deemed to have been duly executed by it if manually signed by an authorized
signatory of the Bond Trustee, but it shall not be necessary that the same person sign the
certificate of authentication on all of the Bonds issued hereunder.
SECTION 2.09. NO ISSUANCE OF ADDITIONAL BONDS. The Issuer
agrees that it will not issue any additional bonds under this Bond Indenture. Only the
Bonds shall be Outstanding under this Bond Indenture and entitled to the security of the
Trust Estate.
SECTION 2.10. CANCELLATION AND DESTRUCTION OF BONDS
BY THE BOND TRUSTEE. Whenever any Outstanding Bonds shall be delivered to
the Bond Trustee for the cancellation thereof pursuant to this Bond Indenture, upon
payment of the principal amount or interest represented thereby or for replacement
pursuant to Section 2.06 hereof, such Bonds shall be promptly cancelled and treated in
accordance with the Bond Trustee's standard retention policies. In the event of
destruction of the Bonds by the Bond Trustee, a certificate of destruction evidencing such
destruction shall be furnished by the Bond Trustee to the Issuer and the Obligor upon
written request.
SECTION 2.11. BOOK ENTRY ONLY SYSTEM. The Bonds shall be
initially issued in the form of a single fully registered Bond for each maturity of the
Bonds registered in the name of Cede & Co., as nominee of DTC, and except as provided
in Section 2.12 hereof, all of the outstanding Bonds shall be registered in the name of
Cede & Co., as nominee of DTC.
With respect to Bonds registered in the name of Cede & Co., as nominee of DTC,
the Issuer and the Bond Trustee shall have no responsibility or obligation to any
participant in DTC (a "DTC Participant") or to any person on behalf of whom such a
DTC Participant holds an interest in the Bonds, except as provided in this Bond
Indenture. Without limiting the immediately preceding sentence, the Issuer and the Bond
Trustee shall have no responsibility or obligation with respect to (a) the accuracy of the
records of DTC, Cede & Co. or any DTC Participant with respect to any ownership
interest in the Bonds, (b) the delivery to any DTC Participant or any other person, other
than a Bondholder, as shown on the registration books, of any notice with respect to the
Bonds, including any notice of redemption, (c) any consent given or other action taken by
DTC or Cede & Co. as the Registered Owner, or (d) the payment to any DTC Participant
19
4826-1827-9445.4.
or any other person, other than a Bondholder as shown in the registration books, of any
amount with respect to principal of, premium, if any, or interest on, the Bonds.
Notwithstanding any other provision of this Bond Indenture to the contrary, the Issuer
and the Bond Trustee shall be entitled to treat and consider the person in whose name
each Bond is registered in the registration books as the absolute owner of such Bond for
the purpose of payment of principal, premium, if any, and interest with respect to such
Bond, for the purpose of giving notices of redemption and other matters with respect to
such Bond, for the purpose of registering transfers with respect to such Bond, and for all
other purposes whatsoever. The Bond Trustee shall pay all principal of, premium, if any,
and interest on the Bonds only to or upon the order of the respective owners, as shown in
the registration books as provided in this Bond Indenture, or their respective attorneys
duly authorized in writing, and all such payments shall be valid and effective to fully
satisfy and discharge the Issuer's obligations with respect to payment of principal of,
premium, if any, and interest on, the Bonds to the extent of the sum or sums so paid. No
person other than an owner, as shown in the registration books, shall receive a Bond
certificate evidencing the obligation of the Issuer to make payments of principal,
premium, if any, and interest, pursuant to this Bond Indenture. Upon delivery by DTC to
the Bond Trustee of written notice to the effect that DTC has determined to substitute a
new nominee in place of Cede & Co., and subject to the provisions in this Bond Indenture
with respect to payment of interest to the Registered Owner at the close of business on
the Record Date, the word "Cede & Co." in this Bond Indenture shall refer to such new
nominee of DTC.
SECTION 2.12. SUCCESSOR SECURITIES DEPOSITORY;
TRANSFERS OUTSIDE BOOK ENTRY ONLY SYSTEM.
(a) In the event that the Obligor determines that DTC is incapable of discharging
its responsibilities described herein and in the representation letter of the Issuer to DTC
(the "DTC Letter") and that it is in the best interest of the beneficial owners of the Bonds
that they be able to obtain certificated Bonds, the Issuer, at the direction of the Obligor,
shall (i) appoint a successor securities depository, qualified to act as such under Section
17(a) of the Securities Exchange Act of 1934, as amended, notify DTC and DTC
Participants, identified by DTC, of the appointment of such successor securities
depository and transfer one or more separate Bonds to such successor securities
depository, or (ii) notify DTC and DTC Participants, identified by DTC, of the
availability through DTC of Bonds and transfer one or more separate Bonds to DTC
Participants, identified by DTC, having Bonds credited to their DTC accounts. In such
event, the Bonds shall no longer be restricted to being registered in the registration books
in the name of Cede & Co., as nominee of DTC, but may be registered in the name of the
successor securities depository, or its nominee, or in whatever name or names
Bondholders transferring or exchanging Bonds shall designate, in accordance with the
provisions of this Bond Indenture.
20
4826-1827-9445.4.
(b) Upon the written consent of 100% of the beneficial owners of the Bonds,
the Bond Trustee, in accordance with the DTC Letter, shall withdraw the Bonds from
DTC, and authenticate and deliver Bonds fully registered to the assignees of DTC or its
nominee. If the request for such withdrawal is not the result of any Issuer action or
inaction, such withdrawal, authentication and delivery shall be at the cost and expense
(including costs of printing, preparing and delivering such Bonds) of the Persons
requesting such withdrawal, authentication and delivery.
SECTION 2.13. PAYMENTS TO CEDE & CO. Notwithstanding any other
provision of this Bond Indenture to the contrary, so long as any Bond is registered in the
name of Cede & Co., as nominee of DTC, all payments with respect to principal of,
premium, if any, and interest on, such Bond and all notices, transfers and deliveries with
respect to such Bond shall be made and given, respectively, in the manner provided in the
DTC Letter.
21
4826-1827-9445.4.
ARTICLE III
REVENUES AND FUNDS
SECTION 3.01. APPLICATION OF PROCEEDS OF BONDS. The Issuer
will sell and cause to be delivered to the initial purchasers thereto the Bonds and will
deliver the proceeds thereof to the Bond Trustee for disposal as follows:
(a) Deposit, into the Reserve Fund, the amount specified in the request and
authorization to the Bond Trustee described in Section 2.07(d) hereof.
(b) Deposit, into the Cost of Issuance Fund, the amount specified in the request
and authorization to the Bond Trustee described in Section 2.07(d) hereof.
(c) Deposit, into the Project Fund, the balance of the proceeds of the Bonds.
SECTION 3.02. CREATION OF THE BOND FUND. There is hereby
created by the Issuer and ordered established with the Bond Trustee a trust fund to be
designated as the "City of Atlantic Beach, Florida Health Care Facilities Revenue Bonds
(Fleet Landing Project) Series 2013B Bond Fund" (the "Bond Fund"). There are hereby
created by the Issuer and ordered established with the Bond Trustee two separate
accounts within the Bond Fund to be designated as the Principal Account and the Interest
Account, respectively. Moneys on deposit in the Principal Account shall be used to pay
the principal of and premium, if any, on the Bonds, when due and payable. Moneys on
deposit in the Interest Account shall be used to pay the interest on the Bonds.
SECTION 3.03. PAYMENTS INTO THE BOND FUND. There shall be
deposited into the Interest Account all accrued interest received from the sale of the
Bonds to the initial purchasers thereof. In addition, there shall also be deposited into the
Principal Account or the Interest Account, as and when received, (i) all payments on the
Note, (ii) all moneys transferred to the Bond Fund from the Reserve Fund pursuant to
Section 3.10 hereof, (iii) all other moneys required to be deposited therein pursuant to the
Loan Agreement, and (iv) all other moneys received by the Bond Trustee when
accompanied by directions that such moneys are to be paid into the Principal Account or
the Interest Account. There also shall be retained or deposited in the Principal Account
or the Interest Account all interest and other income received on investments or moneys
required to be transferred thereto, in accordance with Section 6.02 hereof. The Issuer
hereby covenants and agrees that so long as any of the Bonds are Outstanding it will
deposit, or cause to be deposited, into the Principal Account or the Interest Account for
its account sufficient sums from revenues and receipts derived from the Loan Agreement
promptly to meet and pay the principal of, premium, if any, and interest on the Bonds as
the same become due and payable.
SECTION 3.04. USE OF MONEYS IN THE PRINCIPAL ACCOUNT
AND THE INTEREST ACCOUNT. Except as provided in Sections 3.15 and 8.05
22
4826-1827-9445.4.
hereof, moneys in the Principal Account or the Interest Account shall be used solely for
the payment of the principal of, premium, if any, and interest on the Bonds on a pro rata
basis.
SECTION 3.05. CUSTODY OF THE BOND FUND. The Bond Fund shall
be in the custody of the Bond Trustee but in the name of the Issuer, and the Issuer hereby
authorizes and directs the Bond Trustee to withdraw sufficient funds from the Principal
Account or the Interest Account of the Bond Fund to pay the principal of, premium, if
any, and interest on the Bonds as the same come due and payable, which authorization
and direction the Bond Trustee hereby accepts.
SECTION 3.06. PROJECT FUND.
(a) There is hereby created and established with the Bond Trustee a trust fund
designated as the "City of Atlantic Beach, Florida Health Care Facilities Revenue Bonds
(Fleet Landing Project) Series 2013B Project Fund" (the "Project Fund"). Moneys in the
Project Fund shall be used to pay Costs of the Project or as hereinafter provided. Under
no circumstances shall moneys in the Project Fund be used to pay Cost of Issuance.
(b) Payments from the Project Fund shall be made in accordance with this
Article III and Article IV of the Loan Agreement. Upon receipt of the required
certificates, the Bond Trustee shall pay the amount requested to the extent that the
Obligor is entitled to payment pursuant to the Loan Agreement.
(c) If an Event of Default occurs under this Bond Indenture, and the Bond
Trustee declares the principal of all Bonds and the interest accrued thereon to be due and
payable, no moneys may be paid out of the Project Fund by the Bond Trustee during the
continuance of such an Event of Default; provided, however, that if such an Event of
Default shall be waived and such declaration shall be rescinded by the Bond Trustee or
the holders and owners of the Bonds pursuant to the terms of this Bond Indenture, the full
amount of any such remaining moneys in the Project Fund may again be disbursed by the
Bond Trustee in accordance with the provisions of the Loan Agreement and this Bond
Indenture.
(d) The Bond Trustee shall not be accountable for the use or application of the
proceeds from the Project Fund disbursed in accordance with the provisions of the Loan
Agreement and this Bond Indenture.
SECTION 3.07. COMPLETION CERTIFICATE. At such time as the
Obligor determines that construction of the Project has been completed in substantial
compliance with the final plans and specifications for the Project or has determined to
terminate any further construction of the Project, it shall deliver the Completion
Certificate to the Bond Trustee in accordance with and to the extent required by the Loan
Agreement.
23
4826-1827-9445.4.
SECTION 3.08. CREATION OF THE RESERVE FUND.
(a) There is hereby created and established with the Bond Trustee a trust fund
designated as the "City of Atlantic Beach, Florida Health Care Facilities Revenue Bonds
(Fleet Landing Project) Series 2013B Debt Service Reserve Fund" (the "Reserve Fund").
(b) Moneys on deposit in the Reserve Fund shall be used to provide a reserve
for the payment of the principal of and interest on the Bonds.
SECTION 3.09. PAYMENTS INTO THE RESERVE FUND. In addition to
the deposits required by Section 3.01 hereof, there shall be deposited into the Reserve
Fund any Reserve Fund Obligations delivered by the Obligor to the Bond Trustee
pursuant to Section 5.6 of the Loan Agreement. In addition, there shall be deposited into
the Reserve Fund all moneys required to be transferred thereto pursuant to Section 6.02
hereof, and all other moneys received by the Bond Trustee when accompanied by
directions that such moneys are to be paid into the Reserve Fund. There shall also be
retained in the Reserve Fund all interest and other income received on investments of
Reserve Fund moneys in the Reserve Fund to the extent provided in Section 6.02 hereof.
SECTION 3.10. USE OF MONEYS IN THE RESERVE FUND. (a)
Except as provided in this Section 3.10 and in Section 3.15 hereof, moneys in the Reserve
Fund shall be used solely for the payment of the principal of and interest on the Bonds in
the event moneys in the Bond Fund and the Funded Interest Account are insufficient to
make such payments when due, whether on an interest payment date, redemption date,
maturity date, acceleration date or otherwise.
(b) Upon the occurrence of an Event of Default of which the Bond Trustee is
deemed to have notice hereunder and the election by the Bond Trustee of the remedy
specified in Section 8.02(a) hereof, any Reserve Fund Obligations in the Reserve Fund
shall, subject to the provisions of Section 3.16 hereof, be transferred by the Bond Trustee
to the Principal Account and applied in accordance with Section 8.05 hereof. In the event
of the redemption of a portion of the Bonds, any Reserve Fund Obligations on deposit in
the Reserve Fund in excess of the Reserve Fund Requirement on the Bonds to be
Outstanding immediately after such redemption may, subject to the provisions of Section
3.16 hereof, be transferred to the Principal Account and applied to the payment of the
principal of the Bonds to be redeemed. On June 1 and December 1 in each year, any
earnings on the Reserve Fund Obligations on deposit in the Reserve Fund that are in
excess of the Reserve Fund Requirement shall be transferred into the Interest Account of
the Bond Fund.
(c) On the final maturity date of the Bonds, any Reserve Fund Obligations in
the Reserve Fund in excess of the Reserve Fund Requirement after giving effect to such
maturity may, upon the direction of the Obligor, be used to pay the principal of and
interest on the Bonds on such final maturity date.
24
4826-1827-9445.4.
(d) If at any time moneys in the Reserve Fund are sufficient to pay the
principal or redemption price of all Bonds, the Bond Trustee may use the moneys on
deposit in the Reserve Fund to pay such principal or redemption price of the Bonds.
(e) In accordance with Section 651.035, Florida Statutes, not less than ten (10)
days prior to any withdrawal of monies from the Reserve Fund, notice of the withdrawal
from the Reserve Fund shall be given by the Bond Trustee or the Obligor by telephone
(850/413-3140) (promptly confirmed in writing) or facsimile (850/488-0313) to the
Florida Office of Insurance Regulation, Specialty Product Administration, The Larson
Building 200 East Gaines Street, Tallahassee, Florida 32399-0327 (the "Office of
Insurance"), provided that such notice by telephone, by facsimile or in writing may be
given to the Office of Insurance at other telephone numbers or other addresses if required
by the Office of Insurance to be used in lieu of the foregoing. The Bond Trustee shall
provide the Office of Insurance with any information concerning the Reserve Fund upon
request of the Office of Insurance or the Borrower.
SECTION 3.11. CUSTODY OF THE RESERVE FUND. The Reserve
Fund shall be in the custody of the Bond Trustee but in the name of the Issuer, and the
Issuer hereby authorizes and directs the Bond Trustee to transfer sufficient moneys from
the Reserve Fund to the Bond Trustee for deposit to the Bond Fund to pay the principal
of and interest on the Bonds for the purposes herein described, which authorization and
direction the Bond Trustee hereby accepts. In the event there shall be a deficiency in the
Principal Account or the Interest Account on any payment date for the Bonds, the Bond
Trustee shall promptly make up such deficiency from the Reserve Fund.
SECTION 3.12. NONPRESENTMENT OF BONDS. In the event that any
Bonds shall not be presented for payment when the principal thereof or interest thereon
becomes due, either at maturity, the date fixed for redemption thereof, or otherwise, if
funds sufficient for the payment thereof shall have been deposited into the Bond Fund or
otherwise made available to the Bond Trustee for deposit therein as provided in Section
3.03 hereof, all liability of the Issuer to the owner or owners thereof for the payment of
such Bonds shall forthwith cease, determine and be completely discharged, and
thereupon it shall be the duty of the Bond Trustee to hold such fund or funds, without
liability for interest thereon, for the benefit of the owner or owners of such Bonds, who
shall thereafter be restricted exclusively to such fund or funds for any claim of whatever
nature on his or their part under this Bond Indenture or on, or with respect to, said Bond,
and all such funds shall remain uninvested. If any Bond shall not be presented for
payment within the period of two years following the date of final maturity of such Bond,
the Bond Trustee shall, to the extent required by law, transfer such funds to the state
treasury of the state in which the principal office of the Bond Trustee is located, in which
case the owner of such Bonds shall look only to such state for payment, or, in the
alternative, to the extent permitted by law, the Bond Trustee shall, upon request in
writing by the Obligor, return such funds to the Obligor free of any trust or lien and such
25
4826-1827-9445.4.
Bond shall, subject to the defense of any applicable statute of limitation, thereafter be an
unsecured obligation of the Obligor. In either event, the Bond Trustee shall have no
further responsibility with respect to such moneys or payment of such Bonds. Thereafter,
the Bondholders shall be entitled to look only to the Obligor for payment, and then only
to the extent of the amount so repaid by the Bond Trustee. The Obligor shall not be
liable for any interest on any sums paid to it.
SECTION 3.13. BOND TRUSTEE'S AND PAYING AGENTS' FEES,
CHARGES, AND EXPENSES. Pursuant to the provisions of the Loan Agreement, the
Obligor has agreed to pay to the Bond Trustee and to each Paying Agent, commencing
with the effective date of the Loan Agreement and continuing until the principal of,
premium, if any, and interest on the Bonds shall have been fully paid or provision for the
payment thereof shall have been made in accordance with the provisions of this Bond
Indenture, the reasonable and necessary fees and expenses (including reasonable
attorneys fees) of the Bond Trustee and each Paying Agent, as and when the same
become due, upon the submission by the Bond Trustee and each Paying Agent of a
statement therefor.
SECTION 3.14. MONEYS TO BE HELD IN TRUST. All moneys required
to be deposited with or paid to the Bond Trustee under any provision of this Bond
Indenture (except moneys in the Rebate Fund) shall be held by the Bond Trustee in trust
for the purposes specified in this Bond Indenture, and except for moneys deposited with
or paid to the Bond Trustee for the redemption of Bonds for which the notice of
redemption has been duly given, shall, while held by the Bond Trustee, constitute part of
the Trust Estate and be subject to the lien hereof.
SECTION 3.15. REPAYMENT TO THE OBLIGOR FROM THE
FUNDS. Any amounts remaining in the Cost of Issuance Fund, Bond Fund, Reserve
Fund or Project Fund after payment in full of the Bonds (or after making provision for
such payment), the fees and expenses of the Bond Trustee and the Paying Agents
(including attorneys fees, if any), the Administration Expenses, and all other amounts
required to be paid hereunder and under the Loan Agreement shall be paid to the Obligor
upon the termination of the Loan Agreement.
26
4826-1827-9445.4.
SECTION 3.16. REBATE FUND.
(a) A special Rebate Fund, designated the "Series 2013B Rebate Fund," is
hereby established with the Bond Trustee by and in the name of the Issuer. The Rebate
Fund shall be for the sole benefit of the United States of America and shall not be subject
to the claim of any other Person, including without limitation the Bondholders. The
Rebate Fund is established for the purpose of complying with Section 148 of the Code.
The money deposited in the Rebate Fund, together with all investments thereof and
investment income therefrom, shall be held in trust and applied solely as provided in this
Section. The Rebate Fund is not a portion of the Trust Estate and is not subject to the lien
of this Bond Indenture. Notwithstanding the foregoing, the Bond Trustee with respect to
the Rebate Fund is afforded all the rights, protections and immunities otherwise accorded
to it hereunder.
(b) Within 60 days after the close of each fifth "Bond Year," the Obligor shall
provide the Bond Trustee a computation in the form of a certificate of an officer of the
Obligor of the amount of "Excess Earnings," if any, for the period beginning on the date
of delivery of the Bonds and ending at the close of such "Bond Year" and the Obligor
shall pay to the Bond Trustee for deposit into the Rebate Fund an amount equal to the
difference, if any, between the amount then in the Rebate Fund and the Excess Earnings
so computed. The term "Bond Year" means with respect to the Bonds each one-year
period ending on the anniversary of the date of delivery of the Bonds or such other period
as may be elected by the Issuer in accordance with the Code and notice of which election
has been given to the Bond Trustee. If, at the close of any Bond Year, the amount in the
Rebate Fund exceeds the amount that would be required to be paid to the United States of
America under paragraph (d) below if the Bonds had been paid in full, such excess may,
at the request of the Obligor, be transferred from the Rebate Fund and paid to the
Obligor.
(c) In general, "Excess Earnings" for any period of time means the sum of
(i) the excess of--
(A) the aggregate amount earned during such period of time on all
"Nonpurpose Investments" (including gains on the disposition of such
Obligations) in which "Gross Proceeds" of the issue are invested (other than
amounts attributable to an excess described in this subparagraph (c)(i)),
over
(B) the amount that would have been earned during such period
of time if the "Yield" on such Nonpurpose Investments (other than amounts
attributable to an excess described in this subparagraph (c)(i)) had been
equal to the yield on the issue, plus
27
4826-1827-9445.4.
(ii) any income during such period of time attributable to the excess
described in subparagraph (c)(i) above.
The term Nonpurpose Investments, Gross Proceeds, Issue Date and Yield shall
have the meanings given to such terms in Section 148 of the Code.
(d) The Bond Trustee shall, as directed in writing by the Obligor, pay to the
United States of America at least once every five years, to the extent that funds are
available in the Rebate Fund or otherwise provided by the Obligor, an amount that
ensures that at least 90 percent of the Excess Earnings from the date of delivery of the
Bonds to the close of the period for which the payment is being made will have been
paid. The Bond Trustee shall pay to the United States of America not later than 60 days
after the Bonds have been paid in full as directed by the Obligor in writing, to the extent
that funds are available in the Rebate Fund or otherwise provided by the Obligor, 100
percent of the amount then required to be paid under Section 148(f) of the Code as a
result of Excess Earnings.
(e) The amounts to be computed, paid, deposited or disbursed under this
section shall be determined by the Obligor acting on behalf of the Issuer within thirty
days after each Bond Year. By such date, the Obligor shall also notify, in writing, the
Bond Trustee and the Issuer of the determinations the Obligor has made and the payment
to be made pursuant to the provisions of this section. Upon written request of any
Registered Owner of Bonds, the Obligor shall furnish to such Registered Owner of Bonds
a certificate (supported by reasonable documentation, which may include calculation by
Bond Counsel or by some other service organization) showing compliance with this
section and other applicable provisions of Section 148 of the Code.
(f) The Bond Trustee shall maintain a record of the periodic determinations by
the Obligor of the Excess Earnings for a period beginning on the first anniversary date of
the issuance of the Bonds and ending on the date six years after the final retirement of the
Bonds. Such records shall state each such anniversary date and summarize the manner in
which the Excess Earnings, if any, was determined.
(g) If the Bond Trustee shall declare the principal of the Bonds and the interest
accrued thereon immediately due and payable as the result of an Event of Default
specified in this Bond Indenture, or if the Bonds are optionally or mandatorily prepaid or
redeemed prior to maturity as a whole in accordance with their terms, any amount
remaining in any of the funds shall be transferred to the Rebate Fund to the extent that the
amount therein is less than the Excess Earnings computed by the Obligor as of the date of
such acceleration or redemption, and the balance of such amount shall be used
immediately by the Bond Trustee for the purpose of paying principal of, redemption
premium, if any, and interest on the Bonds when due. In furtherance of such intention,
the Issuer hereby authorizes and directs its Chairman to execute any documents,
certificates or reports required by the Code and to make such elections, on behalf of the
28
4826-1827-9445.4.
Issuer, which may be permitted by the Code as are consistent with the purpose for the
issuance of the Bonds.
(h) The requirements contained in this Section relating to the computation and
payment of Excess Earnings shall not be applicable if all Gross Proceeds of the Bonds are
expended in compliance with Section 1.148-7 of the Code.
(i) Notwithstanding any of the provisions of this Section, the Bond Trustee
shall have no duty or responsibility with respect to the Rebate Fund except to follow the
specific written instructions of the Obligor.
SECTION 3.17. COST OF ISSUANCE FUND. There is hereby created and
established with the Bond Trustee a trust fund designated as the "City of Atlantic Beach,
Florida Health Care Facilities Revenue Bonds (Fleet Landing Project) Series 2013B Cost
of Issuance Fund" (the "Cost of Issuance Fund"). The Bond Trustee shall disburse
moneys in the Cost of Issuance Fund as provided in Article IV of the Loan Agreement.
Moneys in the Cost of Issuance Fund may be used only for payment of the Cost of
Issuance. On the earlier of (a) the day the Bond Trustee receives a certificate of the
Obligor to the effect that all Cost of Issuance relating to the Bonds has been paid, and (b)
the 180th day following the Delivery Date, any moneys remaining in the Cost of Issuance
Fund shall be transferred to the Interest Account of the Bond Fund. The Cost of Issuance
Fund shall then be closed.
29
4826-1827-9445.4.
ARTICLE IV
COVENANTS OF THE ISSUER
SECTION 4.01. PERFORMANCE OF COVENANTS; AUTHORITY.
The Issuer covenants that it will faithfully perform at all times any and all covenants,
undertakings, stipulations, and provisions contained in this Bond Indenture, in any and
every Bond and in all proceedings of the Issuer pertaining hereto; provided, however, that
except for the covenant of the Issuer set forth in Section 4.02 hereof relating to payment
of the Bonds, the Issuer shall not be obligated to take any action or execute any
instrument pursuant to any provision hereof until it shall have been requested to do so by
the Obligor or by the Bond Trustee, or shall have received the instrument to be executed
and at the option of the Issuer shall have received from the party requesting such
execution assurance satisfactory to the Issuer that the Issuer shall be reimbursed for its
reasonable expenses incurred or to be incurred in connection with taking such action or
executing such instrument. The Issuer covenants that it is duly authorized under the laws
of the State of Florida, including particularly and without limitation the Act, to issue the
Bonds and to execute this Bond Indenture, and to pledge the revenues and receipts hereby
pledged, and to assign its rights under and pursuant to the Loan Agreement and the Note
in the manner and to the extent herein set forth, that all action on its part and to the extent
herein set forth, that all action on its part for the issuance of the Bonds and the execution
and delivery of this Bond Indenture has been duly and effectively taken and will be duly
taken as provided herein, and that the Bonds in the hands of the owners thereof are and
will be valid and enforceable limited obligations of the Issuer according to the import
hereof, except as enforcement thereof and hereof may be limited by bankruptcy,
insolvency, moratorium, reorganization and other similar laws affecting the rights of
creditors and by the application of general principles of equity, if such remedies are
pursued.
SECTION 4.02. PAYMENTS OF PRINCIPAL, PREMIUM, IF ANY,
AND INTEREST. The Issuer will promptly pay or cause to be paid the principal of,
premium, if any, and interest on all Bonds issued hereunder according to the terms
hereof The principal, premium, if any, and interest payments are payable solely from
revenues and other amounts derived from the Note, and from the other security pledged
hereby, which revenues and security are hereby specifically pledged to the payment
thereof in the manner and to the extent herein specified. Nothing in the Bonds or in this
Bond Indenture shall be considered or construed as pledging any funds or assets of the
Issuer other than those pledged hereby.
SECTION 4.03. SUPPLEMENTAL INDENTURES; RECORDATION OF
BOND INDENTURE AND SUPPLEMENTAL INDENTURES. The Issuer will
execute and deliver all indentures supplemental hereto, and will cause this Bond
Indenture, the Loan Agreement, and all supplements hereto and thereto, as well as all
security instruments and financing statements relating thereto, to be filed in each office
30
4826-1827-9445.4.
required by law in order to publish notice of the liens created by this Bond Indenture and
the Loan Agreement. The Bond Trustee, at the Obligor's expense will cause all
continuation statements and all supplements to any financing statement or continuation
statement and other instruments as may be required, at all times to be recorded, registered
and filed in such manner and in such places as may be required by law in order fully to
preserve and protect the security of the Bondholders and all rights of the Bond Trustee
hereunder. Notwithstanding the preceding sentence, the Bond Trustee shall not be liable
for failure to effect any such filings.
SECTION 4.04. LIEN OF BOND INDENTURE. The Issuer hereby agrees
not to create any lien having priority or preference over the lien of this Bond Indenture
upon the Trust Estate or any part thereof, other than the security interest granted by it to
the Bond Trustee, except as otherwise specifically provided in Article VIII hereof. The
Issuer agrees that no obligations the payment of which is secured by payments or other
moneys or amounts derived from the Loan Agreement and the other sources provided
herein will be issued by it except in accordance with Sections 2.09 and 2.10 of this Bond
Indenture.
SECTION 4.05. RIGHTS UNDER THE LOAN AGREEMENT. The
Issuer will observe all of the obligations, terms and conditions required on its part to be
observed or performed under the Loan Agreement. The Issuer agrees that wherever in
the Loan Agreement it is stated that the Issuer will notify the Bond Trustee, give the
Bond Trustee some right or privilege, or in any way attempts to confer upon the Bond
Trustee the ability for the Bond Trustee to protect the security for payment of the Bonds,
that such part of the Loan Agreement shall be as though it were set out in this Bond
Indenture in full.
The Issuer agrees that the Bond Trustee as assignee of the Loan Agreement may
enforce, in its name or in the name of the Issuer, all rights of the Issuer (except those
rights of the Issuer to indemnification and payment under Sections 5.7, 7.5 and 9.5
thereof) and all obligations of the Obligor under and pursuant to the Loan Agreement for
and on behalf of the Bondholders, whether or not the Issuer is in default hereunder.
SECTION 4.06. TAX COVENANTS.
(a) The Issuer covenants and agrees that until the final maturity of the Bonds,
based upon the Obligor's covenants in Section 4.9 of the Loan Agreement, it will not
knowingly take any action, use any money on deposit in any fund or account maintained
in connection with the Bonds, whether or not such money was derived from the proceeds
of the sale of the Bonds or from any other source, in a manner that would cause the
Bonds to be arbitrage bonds, within the meaning of Section 148 of the Code. In the event
the Obligor notifies the Issuer that it is necessary to restrict or limit the yield on the
investment of moneys held by the Bond Trustee pursuant to this Bond Indenture, or to
use such moneys in any certain manner to avoid the Bonds being considered arbitrage
31
4826-1827-9445.4.
bonds, the Issuer at the written direction and expense of the Obligor shall deliver to the
Bond Trustee appropriate written instructions of the Issuer, in which event the Bond
Trustee shall take such action as instructed to restrict or limit the yield on such
investment or to use such moneys in accordance with such instructions.
(b) The Issuer shall not knowingly use any proceeds of Bonds or any other
funds of the Issuer, directly or indirectly, in any manner, and shall not knowingly take
any other action or actions, that would result in any of the Bonds being treated other than
as an obligation described in Section 103(a) of the Code.
(c) The Issuer will not knowingly use any portion of the proceeds of the Bonds,
including any investment income earned on such proceeds, directly or indirectly, to make
or finance loans to Persons who are not "Exempt Persons." For purposes of the preceding
sentence, a loan to an organization described in Section 501(c)(3) of the Code for use
with respect to an unrelated trade or business, determined according to Section 513(a) of
the Code, constitutes a loan to a Person who is not an "Exempt Person."
(d) The Issuer will not knowingly take any action that would result in all or any
portion of the Bonds being treated as federally guaranteed within the meaning of Section
149(b)(2) of the Code.
(e) For purposes of this Section, the Issuer's compliance shall be based solely
on acts or omissions by the Issuer, and no acts, omissions or directions of the Obligor, the
Bond Trustee or any other Persons shall be attributable to the Issuer.
SECTION 4.07. CHANGE IN LAW. To the extent that published rulings of
the Internal Revenue Service, or amendments to the Code modify the covenants of the
Issuer that are set forth in this Bond Indenture or that are necessary for interest on the
Bonds to be excludable from gross income for federal income tax purposes, the Issuer,
upon receiving the written Opinion of Bond Counsel to such effect, will comply, at the
expense of the Obligor, with such modifications and direct the Bond Trustee to take such
action as may be required to comply with such modifications.
SECTION 4.08. PROGRAM INVESTMENT. The proceeds of the Bonds
are to be used to finance the Project. With respect to the Bonds, the Issuer asserts:
(a) At least 95 percent of all obligations acquired with the proceeds of the
Bonds, by amount of cost outstanding, will be evidences of loans to a substantial number
of persons representing the general public, loans to exempt persons, or loans to provide
housing and related facilities, or any combination of the foregoing.
(b) At least 95 percent of all amounts received by the Issuer with respect to the
Bonds will be used for one or more of the following purposes: to make loans to exempt
organizations, to pay the principal or interest or otherwise to service the debt on the
32
4826-1827-9445.4.
Bonds; to reimburse the Issuer or to pay for administrative costs of issuing such
obligations; or to redeem or retire such Bonds of the Issuer at the next earliest possible
date of redemption.
(c) Any person or any related party, as defined in Section 1.150-1 of the Code,
as amended, from whom the Issuer may acquire obligations, shall not, pursuant to an
arrangement, formal or informal, purchase the Issuer's bonds in an amount related to the
amount of the obligations to be acquired from such person by the Issuer.
(d) The Issuer does not waive the right to treat the Loan Agreement as a
program investment.
33
4826-1827-9445.4.
ARTICLE V
REDEMPTION OF BONDS
SECTION 5.01. OPTIONAL REDEMPTION OF BONDS. The Bonds are
subject to optional redemption prior to maturity by the Issuer at the written direction of
the Obligor in whole or in part on November 15, 2013, or on any date thereafter, at the
redemption price equal to the principal amount of such Bonds to be redeemed, together
with accrued interest to the redemption date.
SECTION 5.02. SINKING FUND REDEMPTION.
(a) The Bonds are subject to mandatory sinking fund redemption at a redemption
price equal to the principal amount thereof plus accrued interest to the redemption date.
As and for a sinking fund for the redemption of Bonds, the Issuer shall cause to be
deposited into the Principal Account of the Bond Fund a sum which is sufficient to
redeem on November 15 of each of the following years (after credit as provided below)
the following principal amounts plus accrued interest to the redemption date:
Year Principal Amount
2038 $2,550,000
2039 2,690,000
2040 2,845,000
2041 3,005,000
2042 3,170,000
2043* 3,350,000
*Stated Maturity
(b) On or before the thirtieth day prior to each sinking fund payment date, the
Bond Trustee shall proceed to select for redemption (by lot in such manner as the Bond
Trustee may determine) from all Bonds Outstanding, a principal amount of such Bonds
equal to the Aggregate Principal Amounts of such Bonds redeemable with the required
sinking fund payments, and shall call such Bonds or portions thereof ($5,000 or any
integral multiple thereof) for redemption from the sinking fund on the next November 15
and give notice of such call. At the option of the Obligor to be exercised by delivery of a
written certificate to the Bond Trustee on or before the forty-fifth day next preceding any
sinking fund redemption date, it may (i) deliver to the Bond Trustee for cancellation
Bonds or portions thereof, in the Aggregate Principal Amounts desired by the Obligor, or
(ii) specify a principal amount of Bonds or portions thereof, which prior to said date have
been redeemed (otherwise than through the operation of the sinking fund) and canceled
34
4826-1827-9445.4.
by the Bond Trustee at the request of the Issuer and not theretofore applied as a credit
against any sinking fund redemption obligation. Each such Bond or portion thereof so
delivered or previously redeemed shall be credited by the Bond Trustee at 100% of the
principal amount thereof against the obligation of the Issuer to redeem Bonds on such
sinking fund redemption date. Any excess shall be credited against the next sinking fund
redemption obligation to redeem Bonds. In the event that the Obligor shall avail itself of
the provisions of clause (i) of the second sentence of this paragraph, the certificate
required by the second sentence of this paragraph shall be accompanied by the Bonds or
portions thereof to be canceled.
SECTION 5.03. METHOD OF SELECTION OF BONDS IN CASE OF
PARTIAL REDEMPTION; REDEMPTION PRIORITY.
(a) In the event that less than all of the Outstanding Bonds are to be redeemed
as provided in Sections 5.01 or 5.08 hereof, the Obligor may select the particular
maturities to be redeemed. If less than all of the Outstanding Bonds of a single maturity
are to be redeemed, they shall be selected by the Securities Depository or by lot in such
manner as the Bond Trustee may determine.
(b) If a Bond is of a denomination larger than the minimum Authorized
Denomination, a portion of such Bond may be redeemed, but Bonds shall be redeemed
only in the principal amount of an Authorized Denomination and no Bond may be
redeemed in part if the principal amount to be Outstanding following such partial
redemption is not an Authorized Denomination.
SECTION 5.04. NOTICE OF REDEMPTION. Bonds shall be called for
redemption by the Bond Trustee as herein provided upon receipt by the Bond Trustee at
least 45 days prior to the redemption date of a certificate of the Obligor specifying the
principal amount of Bonds to be called for redemption, the applicable redemption price or
prices and the provision or provisions of this Bond Indenture pursuant to which such
Bonds are to be called for redemption. The provisions of the preceding sentence shall not
apply to the redemption of Bonds pursuant to the sinking fund provided in Section 5.02
hereof, and such Bonds shall be called for redemption by the Bond Trustee without the
necessity of any action by the Obligor or the Issuer. In case of every redemption, the
Bond Trustee shall cause notice of such redemption to be given by mailing by first class
mail, postage prepaid, a copy of the redemption notice to the owners of the Bonds
designated for redemption in whole or in part, at their addresses as the same shall last
appear upon the registration books, in each case not more than 60 nor less than 30 days
prior to the redemption date. In addition, notice of redemption shall be sent by first class
or registered mail, return receipt requested, or by overnight delivery service (1)
contemporaneously with such mailing: (A) to any owner of $1,000,000 or more in
principal amount of Bonds, and (B) to at least two or more information services of
national recognition that disseminate redemption information with respect to municipal
bonds; and (2) to any securities depository registered as such pursuant to the Securities
35
4826-1827-9445.4.
Exchange Act of 1934, as amended, that is an owner of Bonds to be redeemed so that
such notice is received at least two days prior to such mailing date. An additional notice
of redemption shall be given by certified mail, postage prepaid, mailed not less than 60
nor more than 90 days after the redemption date to any owner of Bonds selected for
redemption that has not surrendered the Bonds called for redemption, at the address as
the same shall last appear upon the registration books.
All notices of redemption shall state:
(1) the redemption date,
(2) the redemption price,
(3) the identification, including complete designation (including series)
and issue date of the Bonds and the CUSIP number (and in the case of partial
redemption, certificate number and the respective principal amounts, interest rates
and maturity dates) of the Bonds to be redeemed,
(4) the condition for redemption, if any,
(5) that on the redemption date the redemption price will become due
and payable upon each such Bonds, and that interest thereon shall cease to accrue
from and after said date, and
(6) the name and address of the Bond Trustee and any paying agent for
such Bonds, including the place where such Bonds are to be surrendered for
payment of the redemption price and the name and phone number of a contact
person at such address.
Provided, however, that failure to give any such notice, or any defect therein, shall
not affect the validity of any proceedings for the redemption of such Bonds.
SECTION 5.05. BONDS DUE AND PAYABLE ON REDEMPTION
DATE; INTEREST CEASES TO ACCRUE. On or before the Business Day prior to
the redemption date specified in the notice of redemption, an amount of money sufficient
to redeem all Bonds called for redemption at the appropriate redemption price, including
accrued interest to the date fixed for redemption, shall be deposited with the Bond
Trustee. If at the time of mailing of notice of any optional redemption the Obligor shall
not have deposited with the Bond Trustee moneys sufficient to redeem all of the Bonds
called for redemption, such notice may state that it is conditional in that it is subject to the
deposit of moneys with the Bond Trustee not later than the redemption date, and such
notice shall be of no effect unless such moneys are so deposited. On the redemption date
the principal amount of each Bond to be redeemed, together with the accrued interest
thereon to such date and redemption premium, if any, shall become due and payable; and
from and after such date, notice having been given and deposit having been made in
36
4826-1827-9445.4.
accordance with the provisions of this Article V, then, notwithstanding that any Bonds
called for redemption shall not have been surrendered, no further interest shall accrue on
any such Bonds. From and after such date of redemption (such notice having been given
and such deposit having been made), the Bonds to be redeemed shall not be deemed to be
Outstanding hereunder, and the Issuer shall be under no further liability in respect
thereof.
SECTION 5.06 CANCELLATION. All Bonds which have been redeemed
shall be cancelled by the Bond Trustee and treated as provided in Section 2.10 hereof.
SECTION 5.07. PARTIAL REDEMPTION OF FULLY REGISTERED
BONDS. Upon surrender of any fully registered Bond for redemption in part only, the
Issuer shall execute and the Bond Trustee shall authenticate and deliver to the owner
thereof, at the expense of the Obligor, a new Bond or Bonds of the same maturity of
Authorized Denominations in an Aggregate Principal Amount equal to the unredeemed
portion of the Bond surrendered.
SECTION 5.08. EXTRAORDINARY OPTIONAL REDEMPTION. The
Bonds shall be subject to optional redemption by the Issuer at the written direction of the
Obligor prior to their scheduled maturities, in whole or in part at a redemption price equal
to the principal amount thereof plus accrued interest from the most recent interest
payment date to the redemption date on any date following the occurrence of any of the
following events:
(1) in case of damage or destruction to, or condemnation of, any property,
plant, and equipment of any Obligated Group Member, to the extent that the net proceeds
of insurance or condemnation award exceed the Threshold Amount and the Obligor has
determined not to use such net proceeds or award to repair, rebuild or replace such
property, plant, and equipment; or
(2) as a result of any changes in the Constitution or laws of the State of Florida
or of the United States of America or of any legislative, executive, or administrative
action (whether state or federal) or of any final decree,judgment, or order of any court or
administrative body (whether state or federal), the obligations of the Obligor under the
Loan Agreement have become, as established by an Opinion of Counsel, void or
unenforceable in each case in any material respect in accordance with the intent and
purpose of the parties as expressed in the Loan Agreement.
37
4826-1827-9445.4.
ARTICLE VI
INVESTMENTS
SECTION 6.01. INVESTMENT OF BOND FUND, PROJECT FUND
AND RESERVE FUND MONEYS. Any moneys held as part of the Bond Fund,
Project Fund or Reserve Fund shall be invested or reinvested by the Bond Trustee at the
written request and direction of the Obligor (upon which the Bond Trustee is entitled to
rely) in Permitted Investments, subject to the provisions of this Bond Indenture. All
Permitted Investments shall be either subject to redemption at any time at a fixed value at
the option of the owner thereof or shall mature or be marketable not later than the
Business Day prior to the date on which the proceeds are expected to be expended. For
the purpose of any investment or replacement under this Section, the Permitted
Investments shall be deemed to mature at the earliest date on which the Obligor is, on
demand, obligated to pay a fixed sum in discharge of the whole of such obligation. The
Bond Trustee may make any and all investments permitted by the provisions of this
Section through its trust department and may charge its ordinary and customary fees for
such trades, including cash sweep account fees. In order to comply with the directions of
the Obligor, the Bond Trustee may sell, at the market price, or present for redemption, or
may otherwise cause liquidation prior to their maturities, any of the obligations in which
funds have been invested, and the Bond Trustee shall not be liable for any loss or penalty
of any nature resulting therefrom. In order to avoid loss in the event of any need for
funds, the Obligor may instruct the Bond Trustee, in lieu of a liquidation or redemption
of investments in the fund or account needing funds, to exchange such investment for
investments in another fund or account that may be liquidated at no, or at reduced, loss.
The Bond Trustee shall be under no liability for interest on any moneys received
hereunder unless specifically agreed to in writing. Notwithstanding anything to the
contrary in this Section 6.01, (i) the Obligor shall not direct the Bond Trustee to purchase
any Premium Security unless the written instructions of the Obligor to make such
purchase set forth the amount of premium on such Premium Security, and (ii) the Obligor
shall not direct the Bond Trustee to sell any Premium Security, unless prior to such sale,
the Obligor has directed the Bond Trustee as to the amount of realized premium on such
Premium Security to be transferred from the Funded Interest Account to the account in
which such Premium Security was held.
Ratings of Investment Securities shall be determined at the time of purchase of
such Investment Securities and without regard to ratings subcategories. The Bond
Trustee shall have no responsibility to monitor the ratings of Investment Securities after
the initial purchase of such Investment Securities.
SECTION 6.02. ALLOCATION AND TRANSFERS OF INVESTMENT
INCOME. Any investments in any Fund shall be held by or under the control of the
Bond Trustee and shall be deemed at all times a part of the Fund from which the
investment was made. Any loss resulting from such investments shall be charged to such
38
4826-1827-9445.4.
Fund. The Bond Trustee shall not be liable for any loss or penalty resulting from any
such investment made in accordance with any permitted direction by an Obligor or for
the Bonds becoming "arbitrage bonds" by reason of any such investment. Any interest or
other gain from any fund from any investment or reinvestment pursuant to Section 6.01
hereof shall be allocated and transferred as follows:
(a) On a monthly basis the Bond Trustee shall furnish to the Obligor a full and
complete statement of all receipts and disbursements of Permitted Investments in any
Fund and Account covering such period.
(b) Any interest or other gain realized as a result of any investments or
reinvestments of moneys in the Principal Account and the Interest Account of the Bond
Fund shall be credited at least semiannually to the Interest Account unless a deficiency
exists in the Reserve Fund, in which case such interest or other gain shall be paid into the
Reserve Fund forthwith.
(c) Any interest or other gain realized as a result of any investments or
reinvestments of moneys in the Reserve Fund shall be credited to the Reserve Fund if a
deficiency exists therein at that time. If a deficiency does not exist in the Reserve Fund at
that time, such interest or other gain on other amounts paid into the Reserve Fund shall be
paid during the construction period for the Project for deposit into the Funded Interest
Account of the Project Fund created in connection with the issuance of Bonds for the
Project or if after the completion of such construction period, for deposit into the Interest
Account of the Bond Fund, in each case at least semiannually.
The Bond Trustee shall sell and reduce to cash a sufficient portion of such
investments whenever the cash balance in any fund is insufficient for the purposes of
such fund.
SECTION 6.03. VALUATION OF PERMITTED INVESTMENTS.
Accounting and valuation of Permitted Investments in any Fund or Account will be
performed as follows:
(a) On a monthly basis the Bond Trustee shall furnish to the Obligor a full and
complete statement of all receipts and disbursements of Permitted Investments in any
Fund and Account covering such period.
(b) The Bond Trustee shall also furnish on or before November 15 of each year
a statement of the assets contained in each Fund and Account. Assets will be valued at
market value as of October 31 by the Bond Trustee in such statement in accordance with
the normal valuation procedures of the Bond Trustee; provided, however, in the event
monies are withdrawn from the Reserve Fund for a deficiency in the Principal Account or
Interest Account pursuant to Section 3.10(b) hereof, assets in the Reserve Fund shall also
39
4826-1827-9445.4.
be valued as of the first Business Day after such transfer is made (such date and each
October 31 referred to as a "Valuation Date").
(c) If on any Valuation Date, the amount on deposit in the Reserve Fund is less
than 90% of the Reserve Fund Requirement as a result of a decline in the market value of
investments on deposit in the Reserve Fund, the Obligor shall deposit with the Bond
Trustee an amount necessary to restore the Reserve Fund to the Reserve Fund
Requirement within 120 days following the date on which the Obligor receives notice of
such deficiency.
(d) If at any time, the amount on deposit in the Reserve Fund is less than 100%
of the Reserve Fund Requirement as a result of a draw on such Reserve Fund, the Obligor
shall deposit with the Bond Trustee an amount necessary to restore the Reserve Fund to
the Reserve Fund Requirement in not more than 12 substantially equal monthly
installments beginning on the first day of the seventh month after the month in which
such draw occurred.
40
4826-1827-9445.4.
ARTICLE VII
DISCHARGE OF BOND INDENTURE
SECTION 7.01. DISCHARGE OF THE BOND INDENTURE. If, when
the Bonds secured hereby shall become due and payable in accordance with their terms or
otherwise as provided in this Bond Indenture and the whole amount of the principal of,
premium, if any, and interest due and payable upon all of the Bonds shall be paid, or
provision shall have been made for the payment of the same, together with all other sums
payable hereunder (including but not limited to the fees and expenses of the Bond Trustee
and any Paying Agent, in accordance with Section 3.13 hereof), then the right, title and
interest of the Bond Trustee in and to the Trust Estate and all covenants, agreements and
other obligations of the Issuer to the Bondholders shall thereupon cease, terminate and
become void and be discharged and satisfied. In such event, upon the written request of
the Issuer or of the Obligor, and upon receipt of an Opinion of Counsel to the effect that
all conditions precedent herein provided relating to the satisfaction and discharge of this
Bond Indenture have been complied with, the Bond Trustee shall execute such
documents as may be reasonably required by the Issuer and shall turn over to the Obligor
any surplus in the Cost of Issuance Fund, Bond Fund, Reserve Fund and Project Fund.
All Outstanding Bonds of any one or more series shall prior to the maturity or
redemption date thereof be deemed to have been paid within the meaning and with the
effect expressed in this Section if(i) in case said Bonds are to be redeemed on any date
prior to their maturity, the Obligor shall have given to the Bond Trustee in form
satisfactory to it irrevocable written instructions to give on a date in accordance with the
provisions of Section 5.04 hereof notice of redemption of such Bonds on said redemption
date, such notice to be given in accordance with the provisions of Section 5.04 hereof, (ii)
there shall have been deposited with the Bond Trustee (or another Paying Agent) either
moneys in an amount which shall be sufficient, or Government Obligations which shall
not contain provisions permitting the redemption thereof at the option of the issuer, or
any other Person other than the holder thereof, the principal of and the interest on which
when due, and without any reinvestment thereof, will provide moneys which, together
with the moneys, if any, deposited with or held by the Bond Trustee or any Paying Agent
at the same time (including the Bond Fund and the Reserve Fund), shall be sufficient, in
the opinion of an independent certified public accountant, to pay when due the principal
of, premium, if any, and interest due and to become due on said Bonds on or prior to the
redemption date or maturity date thereof, as the case may be, and (iii) in the event that
said Bonds are not by their terms subject to redemption within the next 45 days, the
Obligor shall have given the Bond Trustee in form satisfactory to it irrevocable written
instructions to give, as soon as practicable in the same manner as the notice of
redemption is given pursuant to Section 5.04 hereof, a notice to the owners of such Bonds
that the deposit required by subclause (ii) above has been made with the Bond Trustee (or
41
4826-1827-9445.4.
another depository) and that said Bonds are deemed to have been paid in accordance with
this Section and stating such maturity or redemption date upon which moneys are to be
available for the payment of the principal of, premium, if any, and interest on said Bonds.
Neither the Government Obligations nor moneys deposited with the Bond Trustee
pursuant to this Section nor principal or interest payments on any such Government
Obligations shall be withdrawn or used for any purpose other than, and shall be held in
trust for, the payment of the principal of, premium, if any, and interest on said Bonds;
provided any such cash received from such principal or interest payments on such
Government Obligations deposited with the Bond Trustee, if not then needed for such
purpose, shall, at the written direction of the Obligor, either (1) be reinvested, to the
extent practicable, in Government Obligations of the type described in clause (ii) of this
paragraph maturing at the times and in amounts sufficient to pay when due the principal
of, premium, if any, and interest to become due on said Bonds on or prior to such
redemption date or maturity date thereof, as the case may be, or (2) be used to pay
principal and/or interest on the Bonds. At such time as any Bond shall be deemed paid as
aforesaid, it shall no longer be secured by or entitled to the benefits of this Bond
Indenture, except for the purpose of any payment from such moneys or Government
Obligations deposited with the Bond Trustee and the purpose of transfer and exchange
pursuant to Section 2.05 hereof.
The release of the obligations of the Issuer under this Section shall be without
prejudice to the rights of the Bond Trustee to be paid reasonable compensation for all
services rendered by it hereunder and all its reasonable and necessary expenses, charges
and other disbursements incurred on or about the administration of the trust hereby
created and the performance of its powers and duties hereunder.
42
4826-1827-9445.4.
ARTICLE VIII
DEFAULTS AND REMEDIES
SECTION 8.01. EVENTS OF DEFAULT. If any of the following events
occur, it is hereby defined as and shall be deemed an "Event of Default":
(a) Default in the payment of the principal of or premium, if any, on any Bond
when the same shall become due and payable, whether at the stated maturity thereof, or
upon proceedings for redemption or as required by the sinking fund provisions hereof or
otherwise.
(b) Default in the payment of any installment of interest on any Bond when the
same shall become due and payable.
(c) Declaration under the Master Indenture that the principal of, and accrued
interest on, any Obligation issued thereunder is immediately due and payable.
(d) Failure by the Issuer in the performance or observance of any other of the
covenants, agreements or conditions on its part in this Bond Indenture or in the Bonds
contained, which failure shall continue for a period of 60 days after written notice
specifying such failure and requesting that it be remedied, is given to the Issuer and the
Obligor by the Bond Trustee or to the Issuer, the Obligor and to the Bond Trustee by the
owners of not less than 25% in principal amount of the Bonds Outstanding; provided that
such failure is the result of the failure of the Obligor to perform its obligations under the
Loan Agreement.
SECTION 8.02. REMEDIES ON EVENTS OF DEFAULT. Upon the
occurrence of an Event of Default, the Bond Trustee shall have the following rights and
remedies:
(a) The Bond Trustee shall, in the event that the payment of the principal of
and accrued interest on any Note has been declared due and payable immediately by the
Master Trustee, by notice in writing given to the Issuer and the Obligor, declare the
principal amount of all Bonds then Outstanding and the interest accrued thereon to be
immediately due and payable and said principal and interest shall thereupon become
immediately due and payable. Upon any declaration of acceleration hereunder, the Bond
Trustee shall give notice to the Bondholders in the same manner as a notice of
redemption under Article V hereof, stating the date upon which the Note and the Bonds
shall be payable.
The provisions of the preceding paragraph, however, are subject to the condition
that if, after the payment of the principal of, and accrued interest on, the Note and the
Bonds has been declared due and payable immediately, the declaration of the acceleration
of the Note shall be annulled in accordance with the provisions of the Master Indenture,
43
4826-1827-9445.4.
the declaration of the acceleration of the Bonds shall be automatically annulled, and the
Bond Trustee shall promptly give written notice of such annulment to the Issuer and the
Obligor and notice to Bondholders in the same manner as a notice of redemption under
Article V hereof; but no such annulment shall extend to or affect any subsequent Event of
Default or impair any right or remedy consequent thereon;
(b) The Bond Trustee may, by mandamus, or other suit, action or proceeding at
law or in equity, enforce the rights of the Bondholders, and require the Issuer or the
Obligor or both of them to carry out the agreements with or for the benefit of the
Bondholders and to perform its or their duties under the Act, the Loan Agreement and
this Bond Indenture.
(c) The Bond Trustee may, by action or suit in equity, require the Issuer to
account as if it were the trustee of an express trust for the Bondholders but any such
judgment against the Issuer shall be enforceable only against the funds and accounts
hereunder in the hands of the Bond Trustee.
(d) The Bond Trustee may, by action or suit in equity, enjoin any acts or things
which may be unlawful or in violation of the rights of the Bondholders.
(e) The Bond Trustee may, upon the filing of a suit or other commencement of
judicial proceedings to enforce the rights of the Bond Trustee and the Bondholders, have
appointed a receiver or receivers of the Trust Estate upon a showing of good cause with
such powers as the court making such appointment may confer.
No right or remedy is intended to be exclusive of any other right or remedy, but
each and every such right or remedy shall be cumulative and in addition to any other
remedy given hereunder or now or hereafter existing at law or in equity or by statute.
If any Event of Default shall have occurred and if requested by the owners of at
least 25% in Aggregate Principal Amount of Bonds then Outstanding and indemnified as
provided in Section 9.01(m) hereof(except the remedy under Section 8.02(a) above, for
which no indemnity may be required), the Bond Trustee shall be obligated to exercise
such one or more of the rights and powers conferred by this Section as it, being advised
by counsel, shall deem most expedient in the interests of such Bondholders. In the event
the Bond Trustee shall receive inconsistent or conflicting requests and indemnity from
two or more groups of owners of Outstanding Bonds, each representing less than a
majority of the aggregate principal amount of the Outstanding Bonds, the Bond Trustee,
in its sole discretion, may determine what action, if any, shall be taken.
SECTION 8.03. MAJORITY OF BONDHOLDERS MAY CONTROL
PROCEEDINGS. Anything in this Bond Indenture to the contrary notwithstanding the
owners of at least a majority in Aggregate Principal Amount of the Bonds then
Outstanding shall have the right, at any time, to the extent permitted by law, by an
44
4826-1827-9445.4.
instrument or instruments in writing executed and delivered to the Bond Trustee, to direct
the time, method, and place of conducting all proceedings, to be taken in connection with
the enforcement of the terms and conditions of this Bond Indenture, or for the
appointment of a receiver, and any other proceedings hereunder; provided that such
direction shall not be otherwise than in accordance with the provisions hereof and
provided, further, that notwithstanding anything to the contrary in this Bond Indenture,
the Issuer shall have the sole ability to direct the method and place of conducting all
proceedings to be taken in connection with the enforcement of Section 4.10 of the Loan
Agreement. The Bond Trustee shall not be required to act on any direction given to it
pursuant to this Section until indemnity as set forth in Section 9.01(m) hereof is provided
to it by such Bondholders.
SECTION 8.04. RIGHTS AND REMEDIES OF BONDHOLDERS. No
owner of any Bond shall have any right to institute any suit, action, or proceeding in
equity or at law for the enforcement of this Bond Indenture or for the execution of any
trust hereof or for the appointment of a receiver or any other applicable remedy
hereunder, unless a default has occurred of which the Bond Trustee has been notified as
provided in Section 9.01 hereof, or of which by said Section it is deemed to have notice,
nor unless such default shall have become an Event of Default and the owners of at least
a majority in Aggregate Principal Amount of Bonds then Outstanding shall have made
written request to the Bond Trustee and shall have offered reasonable opportunity either
to proceed to exercise the powers hereinbefore granted or to institute such action, suit, or
proceeding in their own names, nor unless they have also offered to the Bond Trustee
indemnity as provided in Section 9.01(m) hereof, nor unless the Bond Trustee shall
thereafter fail or refuse to exercise the powers hereinbefore granted, or to institute such
action, suit, or proceeding in its own name; and such notification, request, and offer of
indemnity are hereby declared in every case at the option of the Bond Trustee to be
conditions precedent to the execution of the powers and trusts of this Bond Indenture, and
to any action or cause of action for the enforcement of this Bond Indenture, or for the
appointment of a receiver or for any other remedy hereunder; it being understood and
intended that no one or more owners of the Bonds shall have the right in any manner
whatsoever to affect, disturb, or prejudice the lien of this Bond Indenture by his, her, its,
or their action or to enforce any right hereunder except in the manner herein provided and
that all proceedings at law or in equity shall be instituted, had, and maintained in the
manner herein provided and for the equal benefit of the owners of all Bonds then
Outstanding. Nothing in this Bond Indenture contained shall, however, affect or impair
the right of any owner of Bonds to enforce the payment of the principal of, premium, if
any, or interest on any Bond at and after the maturity thereof, or the obligation of the
Issuer to pay the principal of, premium, if any, and interest on each of the Bonds to the
respective owners of the Bonds at the time and place, from the source and in the manner
herein, and in the Bonds expressed.
45
4826-1827-9445.4.
SECTION 8.05. APPLICATION OF MONEYS.
(a) Subject to the provisions of subparagraph (c) hereof, all moneys received by
the Bond Trustee pursuant to any right given or action taken under the provisions of this
Article shall, after payment of the costs and expenses (including reasonable attorney fees)
of the proceedings resulting in the collection of such moneys and the expenses, liabilities,
and advances incurred or made by the Bond Trustee, be deposited into the Bond Fund,
and all moneys so deposited into the Bond Fund and all moneys held in or deposited into
the Bond Fund during the continuance of an Event of Default and available for payment
of the Bonds under the provisions of Section 3.04 hereof shall (after payment of the fees
and expenses of the Bond Trustee and the Issuer) be applied as follows:
(i) Unless the principal of all of the Bonds shall have become or shall
have been declared due and payable, all such moneys shall be applied:
First: To the payment to the Persons entitled thereto of all installments of
interest then due on the Bonds in the order of the maturity of the installments of
such interest and, if the amount available shall not be sufficient to pay in full any
particular installment, then to the payment ratably, according to the amounts due
on such installment, to the Persons entitled thereto, without any discrimination or
privilege; and
Second: To the payment to the Persons entitled thereto of the unpaid
principal of any of the Bonds which shall have become due (other than Bonds
called for redemption for the payment of which moneys are held pursuant to the
provisions of this Bond Indenture), in the order of their due dates, with interest on
such Bonds from the respective dates upon which they become due at the rate of
interest borne by such Bonds and, if the amount available shall not be sufficient to
pay in full Bonds due on any particular date, together with such interest, then to
the payment ratably, according to the amount of principal due on such date, to the
persons entitled thereto, without any discrimination or privilege.
(ii) If the principal of all the Bonds shall have become due or shall have
been declared due and payable, all such moneys shall be applied to the payment of
the principal and interest then due and unpaid upon all of the Bonds (together with
interest on overdue installments of principal at the rate of interest borne by each
Bond), without preference or priority of principal over interest, any other
installment of interest, or of any Bond over any other Bond, or of any series of
Bonds over any other series of Bonds ratably, according to the amounts due
respectively for principal and interest, to the Persons entitled thereto without any
discrimination or privilege.
(iii) If the principal of all the Bonds shall have been declared due and
payable, and if such declaration shall thereafter have been rescinded and annulled
46
4826-1827-9445.4.
under the provisions of this Article then, subject to the provisions of paragraph (ii)
of this Section in the event that the principal of all the Bonds shall later become
due or be declared due and payable, the moneys shall be applied in accordance
with the provisions of the foregoing paragraph (i) of this Section.
(b) Whenever moneys are to be applied pursuant to the provisions of this
Section, such moneys shall be applied at such times, and from time to time, as the Bond
Trustee 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. Whenever the Bond Trustee shall apply such moneys, it shall
fix the date (which shall be an Interest Payment Date unless it shall deem another date
more suitable) 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 Bond Trustee
shall give such notice as it may deem appropriate of the deposit of any such moneys and
of the fixing of any such date, and shall not be required to make payment to the owner of
any unpaid Bond until such unpaid Bond shall be presented to the Bond Trustee for
appropriate endorsement or for cancellation if fully paid.
(c) Notwithstanding the foregoing, any moneys transferred into any Account of
the Bond Fund from the Reserve Fund shall be held by the Bond Trustee separate and
apart from any other moneys in such Account of the Bond Fund.
(d) Whenever all of the Bonds and interest thereon have been paid under the
provisions of this Section and all expenses and fees of the Bond Trustee and the Paying
Agents and all Administration Expenses have been paid, any balance remaining in any
funds shall be paid to the Obligor as provided in Section 3.15 hereof.
SECTION 8.06. BOND TRUSTEE MAY ENFORCE RIGHTS
WITHOUT BONDS. All rights of action and claims under this Bond Indenture or any
of the Bonds Outstanding hereunder may be enforced by the Bond Trustee without the
possession of any of the Bonds or the production thereof in any trial or proceedings
relative thereto; and any suit or proceeding instituted by the Bond Trustee shall be
brought in its name as Bond Trustee, without the necessity of joining as plaintiffs or
defendants any owners of the Bonds and any recovery of judgment shall be for the ratable
benefit of the owners of the Bonds, subject to the provisions of this Bond Indenture.
SECTION 8.07. BOND TRUSTEE TO FILE PROOFS OF CLAIM IN
RECEIVERSHIP, ETC. In the case of any receivership, insolvency, bankruptcy,
reorganization, arrangement, adjustment, composition, or other judicial proceedings
affecting the Obligor, the Bond Trustee shall, to the extent permitted by law, be entitled
to file such proofs of claims and other documents as may be necessary or advisable in
order to have claims of the Bond Trustee and of the Bondholders allowed in such
proceedings for the entire amount due and payable by the Issuer under this Bond
Indenture or by the Obligor at the date of the institution of such proceedings and for any
47
4826-1827-9445.4.
additional amounts which may become due and payable by it after such date, without
prejudice, however, to the right of any Bondholder to file a claim in his, her or its own
behalf.
No provision of this Bond Indenture empowers the Bond Trustee to authorize,
consent to, accept or adopt on behalf of any Bondholder any plan or reorganization,
arrangement, adjustment or composition affecting any of the rights of any Bondholders,
or authorizes the Bond Trustee to vote in respect of the claim in any proceeding described
in this Section.
In the event the Bond Trustee incurs expenses or renders services in any
proceedings affecting the Obligor and described in this Section, the expenses so incurred
and compensation for services so rendered are intended to constitute expenses of
administration under the United States Bankruptcy Code or equivalent law.
SECTION 8.08. DELAY OR OMISSION NO WAIVER. No delay or
omission of the Bond Trustee or of any Bondholder to exercise any right or power
accruing upon any default or Event of Default shall exhaust or impair any such right or
power or shall be construed to be a waiver of any such default or Event of Default, or
acquiescence therein; and every power and remedy given by this Bond Indenture may be
exercised from time to time and as often as may be deemed expedient.
SECTION 8.09. DISCONTINUANCE OF PROCEEDINGS ON
DEFAULT, POSITION OF PARTIES RESTORED. In case the Bond Trustee shall
have proceeded to enforce any right under this Bond Indenture, and such proceedings
shall have been discontinued or abandoned for any reason or shall have been determined
adversely to the Bond Trustee, then and in every such case the Issuer and the Bond
Trustee shall be restored to their former positions and rights hereunder with respect to the
Trust Estate, and all rights, remedies, and powers of the Bond Trustee shall continue as if
no such proceedings had been taken.
SECTION 8.10. ENFORCEMENT OF RIGHTS. The Bond Trustee, as
pledgee and assignee for security purposes of all the right, title, and interest of the Issuer
in and to the Loan Agreement (except those rights of the Issuer under Section 5.7, 7.5,
and 9.5 thereof) and the Note shall, upon compliance with applicable requirements of law
and except as otherwise set forth in this Article VIII, be the sole real party in interest in
respect of, and shall have standing, exclusive of owners of Bonds to enforce each and
every right granted to the Issuer under the Loan Agreement and under the Note. The
Issuer and the Bond Trustee hereby agree, without in any way limiting the effect and
scope thereof, that the pledge and assignment hereunder to the Bond Trustee of any and
all rights of the Issuer in and to the Note and the Loan Agreement shall constitute an
agency appointment coupled with an interest on the part of the Bond Trustee which, for
all purposes of this Bond Indenture, shall be irrevocable and shall survive and continue in
full force and effect notwithstanding the bankruptcy or insolvency of the Issuer or its
48
4826-1827-9445.4.
default hereunder or on the Bonds. Subject to Section 9.01 hereof, in exercising such
right and the rights given the Bond Trustee under this Article VIII, the Bond Trustee shall
take such action as, in the judgment of the Bond Trustee, would best serve the interests of
the Bondholders, taking into account the provisions of the Master Indenture, together
with the security and remedies afforded to owners of the Note.
SECTION 8.11. UNDERTAKING FOR COSTS. All parties to this Bond
Indenture agree, and each Bondholder by his acceptance thereof shall be deemed to have
agreed, that any court may in its discretion require, in any suit for the enforcement of any
right or remedy under this Bond Indenture, or in any suit against the Bond Trustee for
any action taken or omitted by it as Bond Trustee, the filing by any party litigant in such
suit of an undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys' fees, against any party
litigant in such suit, having due regard to the merits and good faith of the claims or
defenses made by such party litigant; but the provisions of this Section shall not apply to
any suit instituted by the Bond Trustee, to any suit instituted by any Bondholder, or group
of Bondholders, holding in aggregate more than 10% in principal amount of the
Outstanding Bonds, or to any suit instituted by a Bondholder for the enforcement of the
payment of the principal of(or premium, if any) or interest on any Bond on or after the
respective maturities thereof expressed in such Bond (or, in the case of redemption, on or
after the redemption date).
SECTION 8.12. WAIVER OF EVENTS OF DEFAULT. The Bond Trustee
may in its discretion waive any Event of Default hereunder and its consequences, and
shall do so upon the written request of the Owners of a majority in aggregate principal
amount of the Bonds then Outstanding; provided, however, that the Bond Trustee may
not waive an Event of Default described in subparagraph (a) of Section 8.01 hereof
without the written consent of the Registered Owners of all Bonds then Outstanding; and
provided, further, that notwithstanding anything to the contrary in this Bond Indenture,
the Issuer shall have the sole ability to waive any Event of Default in connection with the
covenants and obligations of the Obligor under Section 4.10 of the Loan Agreement.
49
4826-1827-9445.4.
ARTICLE IX
CONCERNING THE BOND TRUSTEE AND PAYING AGENTS
SECTION 9.01. DUTIES OF THE BOND TRUSTEE. The Bond Trustee
hereby accepts the trust imposed upon it by this Bond Indenture and agrees to perform
said trusts, but only upon and subject to the following express terms and conditions, and
no implied covenants or obligations shall be read into this Bond Indenture against the
Bond Trustee:
(a) The Bond Trustee, prior to the occurrence of an Event of Default and after
the curing of all Events of Default which may have occurred, undertakes to perform such
duties and only such duties as are specifically set forth in this Bond Indenture. In case an
Event of Default has occurred (which has not been cured) the Bond Trustee shall exercise
such of the rights and powers vested in it by this Bond Indenture and use the same degree
of care and skill in its exercise as a prudent person would exercise or use under the
circumstances in the conduct of his or her own affairs.
(b) The Bond Trustee may execute any of the trusts or powers hereof and
perform any of its duties hereunder, either directly or by or through attorneys, agents,
receivers, or employees, and the Bond Trustee shall not be responsible for any
misconduct or negligence on the part of any receiver, agent or attorney appointed with
due care by it hereunder, and shall be entitled to act upon an Opinion of Counsel
concerning all matters of trust hereof and the duties hereunder, and may in all cases pay
such reasonable compensation to all such attorneys, agents, receivers, and employees as
may reasonably be employed in connection with the trust hereof. The Bond Trustee may
act upon an Opinion of Counsel and shall not be responsible for any loss or damage
resulting from any action or nonaction taken by or omitted to be taken in good faith in
reliance upon such Opinion of Counsel.
(c) The Bond Trustee shall not be responsible for any recital herein or in the
Bonds (except in respect to the certificate of authentication by the Bond Trustee endorsed
on the Bonds and the acceptance of the trusts hereunder).
(d) The Bond Trustee shall not be accountable for the use of any Bonds
authenticated or delivered hereunder or the proceeds thereof, or for any moneys disbursed
by the Bond Trustee in accordance with this Bond Indenture. The Bond Trustee makes
no representations as to the validity or sufficiency of this Bond Indenture or the Bonds.
The Bond Trustee is not a party to, is not responsible for, and makes no representations
with respect to matters set forth in any preliminary or final official statement, or similar
document prepared and distributed in connection with the sale of the Bonds. The Bond
Trustee may become the owner of the Bonds with the same rights which it would have if
not Bond Trustee.
50
4826-1827-9445.4.
(e) The Bond Trustee shall be protected in acting upon any notice, request,
consent, certificate, order, affidavit, letter, telegram, teletransmission or other paper or
document reasonably believed to be genuine and correct and to have been signed or sent
by the proper person or persons. Any request or direction of the Issuer or the Obligor
mentioned herein shall be sufficiently evidenced by a written request, order, or consent
signed in the name of the Issuer or Obligor, by the Issuer Representative, or Obligor, as
the case may be. Any action taken by the Bond Trustee pursuant to this Bond Indenture
upon the request or authority or consent of any person who at the time of making such
request or giving such authority or consent is the owner of any Bonds shall be conclusive
and binding upon all future owners of the same Bond and upon Bonds issued in place
thereof
(f) As to the existence or nonexistence of any fact or matter or as to the
sufficiency or validity of any instrument, paper, or proceeding, the Bond Trustee shall be
entitled to rely and shall be protected in acting or refraining to act upon a certificate
signed on behalf of the Issuer or the Obligor by the Issuer Representative or Obligor or
such other person as may be designated for such purpose as sufficient evidence of the
facts therein contained, and prior to the occurrence of a default of which the Bond
Trustee has been notified as provided in subsection (h) of this Section, or of which by
said subsection it is deemed to have notice, shall also be at liberty to accept a similar
certificate to the effect that any particular dealing, transaction, or action is necessary or
expedient, but may at its discretion secure such further evidence deemed necessary or
advisable, but shall in no case be bound to secure the same.
(g) The permissive right of the Bond Trustee to do things enumerated in this
Bond Indenture shall not be construed as a duty (except as otherwise herein provided)
and the Bond Trustee shall not be answerable for other than its own negligence or willful
misconduct, except that:
(1) the Bond Trustee shall not be liable for any error of judgment made
in good faith by a Responsible Officer, unless it shall be proved that the Bond
Trustee was negligent in ascertaining the pertinent facts;
(2) the Bond Trustee shall not be liable with respect to any action taken
or omitted to be taken by it in good faith in accordance with the direction of the
Bondholders of at least a majority in Aggregate Principal Amount of the
Outstanding Bonds relating to the time, method, and place of conducting any
proceeding for any remedy available to the Bond Trustee, or exercising any trust
or power conferred upon the Bond Trustee, under this Bond Indenture; and
(3) the Bond Trustee shall not be liable if the Bond Trustee reasonably
relies in good faith upon an Officer's Certificate delivered pursuant to this Bond
Indenture or an Opinion of Counsel.
51
4826-1827-9445.4.
(h) The Bond Trustee shall not be required to take notice or be deemed to have
notice of any default hereunder except failure by the Issuer to cause to be made any of the
payments to the Bond Trustee required to be made by Article III hereof unless the Bond
Trustee shall be specifically notified in writing of such default by the Issuer or by the
owners of at least a majority in Aggregate Principal Amount of Bonds then Outstanding
and all notices or other instruments required by this Bond Indenture to be delivered to the
Bond Trustee, must, in order to be effective, be delivered to a Responsible Officer at the
designated corporate trust office of the Bond Trustee, and in the absence of such notice so
delivered, the Bond Trustee may conclusively assume there is no default except as
aforesaid.
(i) All moneys received by the Bond Trustee shall, until used or applied or
invested as herein provided, be held in trust in the manner and for the purposes for which
they were received, but need not be segregated from other funds except to the extent
required by this Bond Indenture or law.
(j) At any and all reasonable times the Bond Trustee and its duly authorized
agents, attorneys, experts, engineers, accountants, and representatives shall have the right,
but shall not be required, to inspect the Project, including all books, papers, and records
of the Issuer and the Obligor pertaining to the Project and the Bonds.
(k) The Bond Trustee shall not be required to give any bond or surety in
respect of the execution of the said trusts and powers or otherwise in respect of the
premises, and no provision of this Bond Indenture shall require the Bond Trustee to
expend or risk its own funds or otherwise incur any financial liability in the performance
of any of its duties hereunder, or in the exercise of any of its rights or powers, without
regard to whether it shall have grounds for believing that repayment of such funds or
indemnity satisfactory against such risk or liability is not assured to it.
(1) Notwithstanding anything in this Bond Indenture contained, the Bond
Trustee shall have the right, but shall not be required, to demand in respect of the
authentication of any Bonds, the withdrawal of any cash, or any action whatsoever within
the purview of this Bond Indenture, any showings, certificates, opinion, appraisals, or
other information, or corporate action or evidence thereof, in addition to that by the terms
hereof required, as a condition of such action by the Bond Trustee deemed desirable for
the purpose of establishing the right of the Issuer to the authentication of any Bonds, the
withdrawal of any cash, or the taking of any other action by the Bond Trustee.
(m) Before taking any action under this Section or Article VIII hereof, the Bond
Trustee may require that indemnity reasonably satisfactory to it be furnished to it for the
reimbursement of its reasonable fees, costs, liabilities and all expenses (including
attorneys fees) which it may incur and to protect it against all liability, except liability
which may result from its negligence or willful misconduct, by reason of any action so
taken.
52
4826-1827-9445.4.
(n) Except as provided in Section 9.01(a) above, it shall not be the duty of the
Bond Trustee, except as expressly provided herein, to see that any duties or obligations
imposed herein or in the Loan Agreement upon the Issuer, the Obligor, or other Persons
are performed, and the Bond Trustee shall not be liable or responsible because of the
failure of the Issuer, the Obligor, or other Persons to perform any act required of them
pursuant to the terms of this Bond Indenture.
(o) In acting or omitting to act pursuant to the provisions of the Loan
Agreement, the Bond Trustee shall be entitled to and be protected by the rights and
immunities accorded to it by the terms of this Bond Indenture.
(p) In the event the Bond Trustee receives inconsistent or conflicting requests
and indemnity from two or more groups of holders of Bonds, each representing less than
a majority in aggregate principal amount of the Bonds Outstanding, the Bond Trustee, in
its sole discretion, may determine what action, if any, shall be taken.
(q) The Bond Trustee's immunities and protections from liability in connection
with the performance of its duties under this Bond Indenture shall extend to the Bond
Trustee's officers, directors, agents and employees. Such immunities and protections,
together with the Bond Trustee's right to compensation, shall survive the Bond Trustee's
resignation or removal and final payment of the Bonds.
(r) The Bond Trustee shall not be responsible or liable for any failure or delay
in the performance of its obligation under this Bond Indenture arising out of or caused,
directly or indirectly, by circumstances beyond its reasonable control, including, without
limitation, acts of God; earthquakes; fire; flood; wars; terrorism; similar military
disturbances; sabotage; epidemic; riots; interruptions; loss or malfunctions of utilities,
computer (hardware or software) or communications services; accidents; labor disputes;
acts of civil or military authority or governmental action; it being understood that the
Bond Trustee shall use commercially reasonable efforts which are consistent with
accepted practices in the banking industry to resume performance as soon as reasonably
practicable under the circumstances.
(s) Notwithstanding the effective date of this Bond Indenture or anything to the
contrary in this Bond Indenture, the Bond Trustee shall have no liability or responsibility
for any act or event relating to this Bond Indenture which occurs prior to the date the
Bond Trustee formally executes this Bond Indenture and commences acting as Bond
Trustee hereunder.
(t) The permissive right of the Bond Trustee to do things enumerated in this
Bond Indenture shall not be construed as a duty.
53
4826-1827-9445.4.
SECTION 9.02. FEES AND EXPENSES OF BOND TRUSTEE AND
PAYING AGENT. The Issuer agrees, but solely from any funds received from the
Obligor pursuant to the Loan Agreement,
(a) to pay to the Bond Trustee, each Paying Agent and all other agents their
reasonable and necessary fees for services rendered hereunder as and when the same
become due and all expenses (including attorneys fees) reasonably and necessarily made
or incurred by the Bond Trustee, such Paying Agent or such other agent in connection
with such services as and when the same become due as provided in Section 3.13 hereof;
and
(b) to reimburse the Bond Trustee upon its request for all reasonable expenses,
disbursements, and advances incurred or made by the Bond Trustee in accordance with
any provisions of this Bond Indenture (including the reasonable compensation, expenses,
and disbursements of its agents and counsel), except any such expense, disbursement, or
advance as may be attributable to the negligence or bad faith of the Bond Trustee.
As security for the performance of the obligations of the Issuer under this Section,
the Bond Trustee shall be secured under this Bond Indenture by a lien subject and
subordinate to the Bonds, in the case of money held for the credit of the Project Fund or
the Reserve Fund, and otherwise prior to the Bonds, and for the payment of the expenses
and reimbursements due hereunder, the Bond Trustee shall have the right to use and
apply any trust funds held by it hereunder, unless held or required to be held in the
Rebate Fund.
SECTION 9.03. RESIGNATION OR REPLACEMENT OF BOND
TRUSTEE. The present or any future Bond Trustee may resign by giving to the Issuer,
the Obligor and each Bondholder thirty days' notice of such resignation. Such
resignation shall not be effective until such time as a successor Bond Trustee shall have
accepted its appointment. The present or any future Bond Trustee may be removed (a) at
any time by an instrument in writing executed by the owners of at least a majority in
Aggregate Principal Amount of Bonds Outstanding, or (b) if an Event of Default
hereunder has not occurred and is continuing, by an instrument in writing executed by the
Obligor.
In case the present or any future Bond Trustee shall at any time resign or be
removed or otherwise become incapable of acting, a successor may be appointed by the
owners of at least a majority in Aggregate Principal Amount of the Bonds Outstanding by
an instrument or concurrent instruments signed by such Bondholders, or their attorneys in
fact duly appointed; provided that the Issuer may, by an instrument executed by order of
the Governing Body, appoint a successor until a new successor shall be appointed by the
Bondholders as herein authorized. The Issuer upon making such appointment shall
forthwith give notice thereof to each Bondholder and to the Obligor, which notice may be
given concurrently with the notice of resignation given by any resigning Bond Trustee.
54
4826-1827-9445.4.
Any successor so appointed by the Issuer shall immediately and without further act be
superseded by a successor appointed in the manner above provided by the owners of at
least a majority in Aggregate Principal Amount of the Bonds Outstanding. In the event
that the Issuer does not so act within thirty days after notice of resignation, the Bond
Trustee shall have the right to petition a court of competent jurisdiction to appoint a
successor Bond Trustee.
Every successor Bond Trustee shall always be a bank, banking corporation or trust
company duly organized under the laws of the United States of America or any state or
territory thereof, with trust powers in good standing, qualified to act hereunder, and
having a combined capital and surplus of not less than $50,000,000. Any successor
appointed hereunder shall execute, acknowledge, and deliver to the Issuer and the
predecessor Bond Trustee an instrument accepting such appointment hereunder and
thereupon such successor shall, without any further act, deed, or conveyance, become
vested with all the estates, properties, rights, powers, and trusts of its predecessor in the
trust hereunder with like effect as if originally named as Bond Trustee herein; but the
Bond Trustee retiring shall, nevertheless, on the written demand of its successor, execute
and deliver an instrument conveying and transferring to such successor, upon the trusts
herein expressed, all the estates, properties, rights, powers, and trusts of the predecessor,
who shall, upon payment of the expenses, charges and other disbursements which are due
and owing to it pursuant to Sections 3.13 and 9.02 hereof, duly assign, transfer and
deliver to the successor all properties and moneys held by it under this Bond Indenture.
Should any instrument in writing from the Issuer be required by any successor for more
fully and certainly vesting in and confirming to it all of such estates, properties, rights,
powers, and trusts, the Issuer shall, on request of such successor, make, execute,
acknowledge, and deliver the deeds, conveyances, and necessary instruments in writing.
The notices herein provided for shall be given by mailing a copy thereof to the
Obligor and the Registered Owners of the Bonds at their addresses as the same shall last
appear on the registration books. The instruments evidencing the resignation or removal
of the Bond Trustee and the appointment of a successor hereunder, together with all other
instruments provided for in this Section shall be filed and/or recorded by the successor
Bond Trustee in each recording office where this Bond Indenture shall have been filed
and/or recorded.
SECTION 9.04. CONVERSION, CONSOLIDATION OR MERGER OF
BOND TRUSTEE. Any bank, banking corporation or trust company into which the
Bond Trustee merges or is consolidated, or to which it (or a receiver on its behalf) may
sell or transfer its corporate trust business as a whole, or substantially as a whole, shall be
the successor of the Bond Trustee under this Bond Indenture with the same rights,
powers, duties, and obligations and subject to the same restrictions, limitations, and
liabilities as its predecessor, all without the execution or filing of any papers or any
further act on the part of any of the parties hereto, anything herein to the contrary
55
4826-1827-9445.4.
notwithstanding. In case any of the Bonds to be issued hereunder shall have
authenticated, but not delivered, any successor Bond Trustee may adopt the certificate of
any predecessor Bond Trustee, and deliver the same as authenticated; and, in case any of
such Bonds shall not have been authenticated, any successor Bond Trustee may
authenticate such Bonds in the name of such successor Bond Trustee.
SECTION 9.05. DESIGNATION AND SUCCESSION OF PAYING
AGENT. The Bond Trustee and any other banks or trust companies, if any, designated
as Paying Agent or Paying Agents in any supplemental indenture shall be the Paying
Agent or Paying Agents for the Bonds.
Any bank or trust company with or into which any Paying Agent may be merged
or consolidated, or to which the assets and business of such Paying Agent may be sold,
shall be deemed the successor of such Paying Agent for the purposes of this Bond
Indenture. If the position of Paying Agent shall become vacant for any reason, the Issuer
shall, within thirty days thereafter, appoint such bank or trust company as shall be
specified by the Obligor and located in the same city as such Paying Agent to fill such
vacancy; provided, however, that if the Issuer shall fail to appoint such Paying Agent
within said period, the Bond Trustee shall make such appointment.
The Paying Agents, if any, shall enjoy the same protective provisions in the
performance of their duties hereunder as are specified in Section 9.01 hereof with respect
to the Bond Trustee insofar as such provisions may be applicable.
56
4826-1827-9445.4.
ARTICLE X
SUPPLEMENTAL INDENTURES AND AMENDMENTS TO THE LOAN
AGREEMENT
SECTION 10.01. SUPPLEMENTAL INDENTURES NOT REQUIRING
CONSENT OF BONDHOLDERS. The Issuer and the Bond Trustee may, without the
consent of, or notice to, the Bondholders, enter into such indentures or agreements
supplemental hereto (which supplemental indentures or agreements shall thereafter form
a part hereof) for any one or more or all of the following purposes:
(a) To add to the covenants and agreements in this Bond Indenture contained
other covenants and agreements thereafter to be observed for the protection or benefit of
the Bondholders.
(b) To cure any ambiguity, or to cure, correct, or supplement any defect or
inconsistent provision contained in this Bond Indenture, or to make any provisions with
respect to matters arising under this Bond Indenture or for any other purpose if such
provisions are necessary or desirable and do not, in the judgment of the Bond Trustee,
adversely affect the interests of the owners of Bonds.
(c) To subject to this Bond Indenture additional revenues, properties, or
collateral.
(d) To qualify this Bond Indenture under the Trust Indenture Act of 1939, if
such be hereafter required in the Opinion of Counsel.
(e) To satisfy any requirements imposed by a Rating Agency if necessary to
maintain the then current rating on the Bonds.
(f) To maintain the extent to which the interest on the Bonds is not includable
in the gross income of the recipients thereof, if in the Opinion of Bond Counsel such
supplemental indenture or agreement is necessary.
SECTION 10.02. SUPPLEMENTAL INDENTURES REQUIRING
CONSENT OF BONDHOLDERS. Exclusive of supplemental indentures covered by
Section 10.01 hereof, the owners of not less than a majority in Aggregate Principal
Amount of the Bonds then Outstanding affected thereby shall have the right, from time to
time, to consent to and approve the execution by the Issuer and the Bond Trustee of such
indenture or indentures supplemental hereto as shall be deemed necessary or desirable by
the Issuer for the purpose of modifying, altering, amending, adding to, or rescinding, in
any particular, any of the terms or provisions contained in this Bond Indenture; provided,
however, that without the consent of the owners of all the Bonds at the time Outstanding
nothing herein contained shall permit, or be construed as permitting any of the following:
57
4826-1827-9445.4.
(a) An extension of the maturity of, or a reduction of the principal amount of,
or a reduction of the rate of, or extension of the time of payment of interest on, or a
reduction of a premium payable upon any redemption of, any Bond.
(b) The deprivation of the owner of any Bond then Outstanding of the lien
created by this Bond Indenture (other than as originally permitted hereby).
(c) A privilege or priority of any Bond or Bonds, over any other Bond.
(d) A reduction in the Aggregate Principal Amount of the Bonds required for
consent to any supplemental bond indenture.
Upon the execution of any supplemental bond indenture pursuant to the provisions
of this Section, this Bond Indenture shall be deemed to be modified and amended in
accordance therewith, and the respective rights, duties, and obligations under this Bond
Indenture of the Issuer, the Bond Trustee and all owners of Bonds then Outstanding shall
thereafter be determined, exercised, and enforced hereunder, subject in all respects to
such modifications and amendments.
If at any time the Issuer shall request the Bond Trustee to enter into such
supplemental bond indenture for any of the purposes of this Section, the Bond Trustee
shall, upon being satisfactorily indemnified with respect to costs, fees and expenses
(including attorneys fees), cause notice of the proposed execution of such supplemental
indenture to be mailed to the Registered Owners of the Bonds at their addresses as the
same last appear on the registration books. Such notice shall briefly set forth the nature
of the proposed supplemental bond indenture and shall state that copies thereof are on file
at the designated office of the Bond Trustee for inspection by all Bondholders. If, within
sixty days or such longer period as shall be prescribed by the Issuer following the giving
of such notice, the owners of not less than a majority in Aggregate Principal Amount of
the Bonds Outstanding at the time of the execution of any such supplemental bond
indenture shall have consented to and approved the execution thereof as herein provided,
no owner of any Bond shall have any right to object to any of the terms and provisions
contained therein, or the operation thereof, or in any manner to question the propriety of
the execution thereof, or to enjoin or restrain the Bond Trustee or the Issuer from
executing the same or from taking any action pursuant to the provisions thereof.
SECTION 10.03. EXECUTION OF SUPPLEMENTAL INDENTURE. The
Bond Trustee is authorized to join with the Issuer in the execution of any such
supplemental bond indenture and to make further agreements and stipulations which may
be contained therein, but the Bond Trustee shall not be obligated to enter into any such
supplemental bond indenture which affects its rights, duties, or immunities under this
Bond Indenture. The Bond Trustee shall be entitled to receive, and shall be fully
protected in relying upon, an Opinion of Counsel stating that the execution and delivery
of a supplemental bond indenture is authorized or permitted by this Bond Indenture and
58
4826-1827-9445.4.
has been effected in compliance with the provisions hereof. In connection with a
supplemental bond indenture entered into pursuant to Section 10.01(b) hereof, the Bond
Trustee may in its discretion determine whether or not in accordance with such provision
the Bondholders would be affected by modification or amendment of this Bond
Indenture, and any such determination shall be binding and conclusive upon the Issuer,
the Obligor, and Bondholders. The Bond Trustee may receive an Opinion of Counsel as
conclusive evidence as to whether the Bondholders would be so affected by any such
modification or amendment to this Bond Indenture.
Any supplemental bond indenture executed in accordance with the provisions of
this Article shall thereafter form a part of this Bond Indenture; and all the terms and
conditions contained in any such supplemental bond indenture as to any provision
authorized to be contained therein shall be deemed to be part of this Bond Indenture for
any and all purposes. In case of the execution and delivery of any supplemental bond
indenture, express reference may be made thereto in the text of the Bonds issued
thereafter, if any, if deemed necessary or desirable by the Bond Trustee.
SECTION 10.04. CONSENT OF OBLIGOR. Anything herein to the contrary
notwithstanding, a supplemental bond indenture under this Article shall not become
effective unless and until the Obligor shall have consented in writing to the execution and
delivery of such supplemental bond indenture unless the Obligor is in default under the
Loan Agreement or an Event of Default described under Section 8.01(a), (b) or (c)
hereunder has occurred and is continuing, in which case no consent of the Obligor shall
be required. The Bond Trustee shall cause notice of the proposed execution of any
supplemental indenture together with a copy of the proposed supplemental bond
indenture to be mailed to the Obligor at least fifteen days prior to the proposed date of
execution of such supplemental bond indenture.
SECTION 10.05. AMENDMENTS, ETC., OF THE LOAN AGREEMENT
NOT REQUIRING CONSENT OF BONDHOLDERS. The Issuer and the Bond
Trustee shall, without the consent of or notice to the Bondholders, consent to any
amendment, change, or modification of the Loan Agreement as may be required (a) by
the provisions of the Loan Agreement and this Bond Indenture, (b) for the purpose of
curing any ambiguity or formal defect or omission, (c) to satisfy any requirements
imposed by a Rating Agency if necessary to maintain the then current rating on the
Bonds, (d) to maintain the extent to which the interest on the Bonds is not includable in
the gross income of the recipients thereof, if in the Opinion of Bond Counsel such
amendment is necessary, and (e) in connection with any other change therein which does
not adversely affect the Bond Trustee or the owners of the Bonds.
SECTION 10.06. AMENDMENTS, ETC., OF THE LOAN AGREEMENT
REQUIRING CONSENT OF BONDHOLDERS. Except for the amendments,
changes, or modifications as provided in Section 10.05 hereof, neither the Issuer nor the
Bond Trustee shall consent to any other amendment, change, or modification of the Loan
59
4826-1827-9445.4.
Agreement without the giving of notice to and the written approval or consent of the
owners of not less than a majority in Aggregate Principal Amount of the Bonds at the
time Outstanding given and procured as provided in Section 10.02 hereof. If at any time
the Issuer and the Obligor shall request the consent of the Bond Trustee to any such
proposed amendment, change, or modification of the Loan Agreement, the Bond Trustee
shall, upon being satisfactorily indemnified with respect to expenses, cause notice of such
proposed amendment, change, or modification to be given in the same manner as
provided in Section 10.02 hereof. Such notice shall briefly set forth the nature of such
proposed amendment, change, or modification and shall state that copies of the
instrument embodying the same are on file at the designated office of the Bond Trustee
for inspection by all Bondholders.
In executing any amendment, change or modification of the Loan Agreement, the
Bond Trustee shall be entitled to receive, and shall be fully protected in relying upon, an
Opinion of Counsel stating that the execution and delivery of such amendment, change,
modification of the Loan Agreement is authorized or permitted by this Bond Indenture
and the Loan Agreement and has been effected in compliance with the provisions of this
Bond Indenture and the Loan Agreement. The Bond Trustee may, but shall not be
obligated to, enter into any such amendment, change, or modification which affects the
Bond Trustee's own rights, duties or immunities. In connection with any amendment,
change or modification in connection with Section 10.05(e), the Bond Trustee may in its
discretion determine whether or not in accordance with such provision the Bond Trustee
or the Bondholders would be prejudiced by such amendment, change, modification. Any
such determination shall be binding and conclusive on the Issuer, the Obligor, and the
Bondholders. The Bond Trustee may receive an Opinion of Counsel as conclusive
evidence as to whether the Bondholders would be so affected by any such amendment,
change, or modification of the Loan Agreement.
60
4826-1827-9445.4.
ARTICLE XI
MISCELLANEOUS
SECTION 11.01. EVIDENCE OF SIGNATURE OF BONDHOLDERS
AND OWNERSHIP OF BONDS. Any request, consent, or other instrument which this
Bond Indenture may require or permit to be signed and executed by the Bondholders may
be in one or more instruments of similar tenor, and shall be signed or executed by such
Bondholders in person or by their attorneys appointed in writing. Proof of the execution
of any such instrument or of an instrument appointing any such attorney, or of the
ownership of Bonds shall be sufficient (except as otherwise herein expressly provided) if
made in the following manner, but the Bond Trustee may, nevertheless, in its discretion,
require further or other proof in cases where it deems the same desirable:
(a) The fact and date of the execution by any Bondholder or his attorney of
such instrument may be proved by the certificate of any officer authorized to take
acknowledgments in the jurisdiction in which he purports to act that the person signing
such request or other instrument acknowledged to him the execution thereof, or by an
affidavit of a witness of such execution, duly sworn to before a notary public.
(b) The ownership of any fully registered Bond and the amount and numbers of
such Bonds and the date of holding the same shall be proved by the registration books of
the Issuer kept by the Bond Trustee.
Any request or consent of the owner of any Bond shall bind all future owners of
such Bond in respect of anything done or suffered to be done by the Issuer or the Bond
Trustee in accordance therewith.
SECTION 11.02. NO PERSONAL LIABILITY. No recourse under or upon
any obligation, covenant or agreement contained in this Bond Indenture, or in any Bond
hereby secured, or under any judgment obtained against the Issuer, or by the enforcement
of any assessment or by any legal or equitable preceding by virtue of any constitution or
statute or otherwise or under any circumstances, under or independent of this Bond
Indenture, shall be had against any elected official, officer, director, agent or employee,
as such, past, present or future, of any of the Issuer, the Bond Trustee, or Duval County,
Florida, either directly or through the Issuer, or otherwise, for the payment for or to the
Issuer or any receiver thereof, or for or to the holder of any Bond issued hereunder or
otherwise of any sum that may be due and unpaid by the Issuer upon any such Bond.
Any and all personal liability of every nature, whether at common law or in equity, or by
statute or by constitution or otherwise, of any such person to respond by reason of any act
or omission on his part or otherwise, for the payment for or to the Issuer or any receiver
thereof or for or to the holder of any Bond issued hereunder or otherwise, of any sum that
may remain due and unpaid upon the Bonds hereby secured or any of them, is hereby
expressly waived and released as a condition of and consideration for the execution of
this Bond Indenture and the issue of such Bonds.
61
4826-1827-9445.4.
SECTION 11.03. LIMITED OBLIGATION. The Issuer, Duval County,
Florida, or any political subdivision thereof, except the Issuer to the extent set forth
herein, shall in any event be liable for the payment of the principal of, premium, if any, or
interest on any of the Bonds issued hereunder. The Bonds are limited obligations of the
Issuer payable solely from the revenues, receipts and resources of the Issuer pledged to
their payment and not from any other revenues, funds or assets of the Issuer. None of the
Bonds of the Issuer issued hereunder shall be construed or constitute an indebtedness of
the Issuer or an indebtedness or obligation (special, moral or general) of the Issuer, Duval
County, Florida, or any political subdivision thereof, except the Issuer to the extent set
forth herein, within the meaning of any constitutional or statutory provision whatsoever.
SECTION 11.04. PARTIES INTERESTED HEREIN. With the exception of
rights herein expressly conferred on the Obligor, nothing in this Bond Indenture
expressed or implied is intended or shall be construed to confer upon, or to give to, any
person other than the Issuer, the Bond Trustee, the Paying Agents, and the owners of the
Bonds, any right, remedy, or claim under or by reason of this Bond Indenture, and any
covenants, stipulations, promises, and agreements in this Bond Indenture contained by
and on behalf of the Issuer shall be for the sole and exclusive benefit of the Issuer, the
Bond Trustee and the owners of the Bonds.
SECTION 11.05. TITLES, HEADINGS, ETC. The titles and headings of the
articles, sections, and subdivisions of this Bond Indenture have been inserted for
convenience of reference only and shall in no way modify or restrict any of the terms or
provisions hereof
SECTION 11.06. SEVERABILITY. In the event any provision of this Bond
Indenture shall be held invalid or unenforceable by any court of competent jurisdiction,
such holding shall not invalidate or render unenforceable any other provision hereof.
SECTION 11.07. GOVERNING LAW. This Bond Indenture shall be
governed and construed in accordance with the laws of the State of Florida.
SECTION 11.08. EXECUTION OF COUNTERPARTS. This Bond
Indenture may be executed in several counterparts, each of which shall be an original and
all of which shall constitute but one and the same instrument.
SECTION 11.09. CONSEQUENTIAL/PUNITIVE DAMAGES. Anything in
this Bond Indenture to the contrary notwithstanding, in no event shall the Bond Trustee
be liable for special, indirect, punitive or consequential loss or damage of any kind
whatsoever (including but not limited to lost profits), even if the Bond Trustee has been
advised of the likelihood of such loss or damage and regardless of the form of action.
SECTION 11.10. WAIVER OF JURY TRIAL. Each party hereto hereby
agrees not to elect a trial by jury of any issue triable of right by jury, and waives any right
62
4826-1827-9445.4.
to trial by jury fully to the extent that any such right shall now or hereafter exist with
regard to this Bond Indenture, or any claim, counterclaim or other action arising in
connection herewith. This waiver of right to trial by jury is given knowingly and
voluntarily by each party, and is intended to encompass individually each instance and
each issue as to which the right to a trial by jury would otherwise accrue.
SECTION 11.11. NO LIABILITY OF BOND TRUSTEE'S OFFICERS. No
recourse under or upon any obligation, covenant, or agreement contained in this Bond
Indenture, or in the Bonds, or for any claim based thereon, or under any judgment
obtained against the Bond Trustee, or by the enforcement of any assessment or penalty or
otherwise or by any legal or equitable proceeding by virtue of any constitution, rule of
law or equity, or statute or otherwise or under any other circumstances, under or
independent of this Bond Indenture, shall be had against any incorporator, member, or
officer, as such, past, present, or future of the Bond Trustee, or any incorporator,
member, or officer of any successor corporation, as such, either directly or through the
Bond Trustee, or any successor corporation, or otherwise, for the payment for or to the
Bond Trustee as trustee hereunder or otherwise, of any sum that may be due and unpaid
by the Issuer upon the Bonds. Any and all personal liability of every nature, whether at
common law or in equity, or by statute or by constitution or otherwise, of any such
incorporator, member, or officer, as such, to respond by reason of any act or omission on
his part, on the part of the Bond Trustee, or otherwise, for or to the Bond Trustee as
trustee hereunder or otherwise, of any sum that may remain due and unpaid hereunder, is
hereby expressly waived and released as a condition of and in consideration for the
execution of this Bond Indenture
SECTION 11.12. NOTICES. Any notice, request or other communication
under this Loan Agreement shall be given in writing and shall be deemed to have been
given by either party to the other party at the addresses shown below upon any of the
following dates:
(a) The date of notice by facsimile, electronic mail or similar communications,
which is confirmed promptly in writing;
(b) Three Business Days after the date of the mailing thereof, as shown by the
post office receipt if mailed to the other party hereto by registered or certified mail;
(c) The date of the receipt thereof by such other party if not given pursuant to
(a) or (b) above.
The address for notice for each of the parties shall be as follows:
63
4826-1827-9445.4.
To the Issuer: City of Atlantic Beach, Florida
800 Seminole Road
Atlantic Beach, Florida 32233-5445
Attn: City Manager
Telephone: (904) 247-5809
Telecopier: (904) 247-5805
To the Obligor: Naval Continuing Care Retirement
Foundation, Inc.
1 Fleet Landing Boulevard
Atlantic Beach, Florida 32233
Attn: Executive Director
Telephone: (904) 246-9900
Telecopier: (904) 246-9447
To the Bond Trustee: U.S. Bank National Association
1349 N. Peachtree Street, Suite 1050
Atlanta, Georgia 30309
Attention: Stephanie Cox
Telephone: (404) 898-8837
Notwithstanding the foregoing, notices to the Bond Trustee shall be effective only
upon receipt.
SECTION 11.13. PAYMENTS DUE ON HOLIDAYS. If the date for making
any payment or the last day for performance of any act or the exercising of any right, as
provided in this Bond Indenture, shall be a legal holiday or a day on which banking
institutions in Atlanta, Georgia, are authorized by law to remain closed, such payment
may be made or act performed or right exercised on the next succeeding day not a legal
holiday or a day on which such banking institutions are authorized by law to remain
closed with the same force and effect as if done on the nominal date provided in this
Bond Indenture.
[Remainder of this Page Intentionally Left Blank; Signature Page Follows.]
64
4826-1827-9445.4.
IN WITNESS WHEREOF, CITY OF ATLANTIC BEACH, FLORIDA has
caused this Bond Indenture to be executed on its behalf by its Mayor, and U.S. BANK
NATIONAL ASSOCIATION has caused this Bond Indenture to be executed on its
behalf by its duly authorized officer to evidence its acceptance of the trusts hereby
created, all as of the date first above written.
CITY OF ATLANTIC BEACH, FLORIDA
By: #4,14-4-4. /1'1. A
Louis M. Borno, Jr., May r
[Signature Page to Indenture of Trust]
U.S. BANK NATIONAL ASSOCIATION, as
Bond Trustee
By: CO
Stephanie Cox, Vice President
[Signature Page to Indenture of Trust]