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1972-05 (Authorizing Loan)M A RESOLUTION AUTHORIZING THE CITY OF OKEECHOBEE, FLORIDA, TO BORROW, AS AN INTERIM LOAN, NOT EXCEEDING $400,000, TO INITIATE THE PROGRAM FOR THE ACQUISITION, CONSTRUCTION AND ERECTION OF EXTENSIONS AND IMPROVEMENTS TO THE WATER DIS- TRIBUTION FACILITIES OF THE CITY'S WATER AND SEWER SYSTEM; TO ISSUE SAID CITY'S PROMISSORY NOTE EVIDENCING SUCH INDEBTEDNESS; AND TO PRO- VIDE FOR THE PAYMENT THEREOF. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OKEECHOBEE, Florida, as follows: SECTION 1. This Resolution is adopted pursuant to the provisions of Section 215.431, Florida Statutes, and other appli- cable provisions of law. SECTION 2. It is hereby found, ascertained and deter- mined that the City of Okeechobee, Florida (hereinafter called the "City") has heretofore by Ordinance No. 356, duly adopted on February 22, 1972, authorized the acquistion, construction and erection of extensions and improvements to the water distribution facilities of the City's water and sewer system and the issuance by the City of not exceeding $400,000 Water and Sewer Revenue Bonds of the City, hereinafter called "obligations:, to finance the cost thereof, and that it is necessary and proper that the funds be made available at this time and prior to the sale and delivery of said obligations for the purpose of initiating said project. SECTION 3. The City is hereby authorized to borrow from Okeechobee County Bank, Okeechobee, Florida, up to $400,000, to be evidenced by a promissory note or notes not exceeding such amount in the aggregate, be payable on or before May 23, 1974, and bear interest at the rate of Five per centum (5%) per annum. Such note or notes shall be executed in the name of the City by its Mayor and countersigned and attested by its City Clerk. The corporate seal of the City shall be impressed thereon. A form for such promissory note or notes is hereto attached and made a part of this Resolution. SECTION 4. Such note or notes, as hereinabove authorized, shall be payable solely from and secured by a first lien upon the proceeds of the obligations hereinabove described, at such time as the same are delivered to the purchaser thereof, or in the alternative, such promissory note or notes shall be payable solely from and secured by a prior lien upon and pledge of the net revenues of the City's water and sewer system and the pro- ceeds of the City's municipal cigarette taxes as described in said Ordinance, in the event that such note or notes shall not be paid on the due date thereof. SECTION 5. The City hereby covenants that it will establish with Okeechobee County Bank, Okeechobee, Florida, a separate account or accounts, to be designated "Water and Sewer System Construction Fund" (hereinafter referred to as the "Con- struction Fund") into which shall be deposited all the proceeds from the promissory note or notes herein authorized. Moneys in the Construction Fund shall be expended only after the expiration of the appeal period applicable to the judicial proceedings to validate the obligations, there having been no appeal of a final judgment validating the obligations, and expended only for the purposes provided in said Ordinance authorizing the issuance of said obligations. Moneys in the Construction Fund shall be secured by the depository bank in the manner prescribed by Florida Statutes relating to the securing of public funds. The City may direct the depository bank to invest such funds in the manner provided in said Ordinance authorizing the issuance of said obligations, until such funds shall be needed to -pay project costs. SECTION 6. This Resolution shall take effect immediately upon its passage. DONE, RESOLVED and made effective the 23rd, day of May, 1972, at a regular adjourned meeting of the City Council, City of Okeechobee, Florida. ATTEST: City Clerk -2- President Pro -tempore, City Council City of Okeechobee, Florida $400,000 1972 UNITED STATES OF AMERICA STATE OF FLORIDA OKEECHOBEE COUNTY .CITY OF OKEECHOBEE WATER AND SEWER REVENUE BONDS ANTICIPATION NOTE FOR VALUE RECEIVED, the City of Okeechobee, Florida (hereinafter referred to as the "City"), hereby promises to pay to the order of Okeechobee County Bank, at its principal office in the City of Okeechobee, Florida, on or before May 23, 1974, solely from the special funds hereinafter mentioned, in lawful money of the United States of America, the principal sum of Four Hundred Thousand Dollars ($400,000) and to pay solely from such special funds, quarterly after the date hereof, interest on such principal sum at the rate of Five per centum (50) per annum. This note is issued pursuant to the Constitution and Laws of the State of Florida, particularly Section 215.431, Florida Statutes, other applicable provisions of law and a resolution duly adopted by the City on May 23, 1972 (hereinafter referred to as the "resolution"), in anticipation of the receipt of the proceeds from the sale of certain revenue bonds authorized to be issued by the City pursuant to Ordinance No. 356, duly adopted by its City Council on February 22, 1972, to pay the cost of the project described in said Ordinance. This note and the interest due thereon are payable solely from and secured by a prior lien upon and a pledge of the proceeds to be derived from the sale of such revenue bonds or, in the alternative, solely from and secured by a prior lien upon and pledge of the net revenues of the City's water and sewer system and the proceeds of the City's municipal cigarette taxes as described in said Ordinance, in the event that such note or notes shall not be paid on the due date thereof. This note shall not constitute a general indebtedness of the City,,and the holder thereof shall never have the right to require or compel the exercise of the power of the City to levy ad valorem taxes or to tax real estate in the City for the payment of the principal of and interest on this note. At the option of the City, this note is payable at any time prior to the stated maturity thereof at par and ac- crued interest to the date of such payment. It is hereby certified, recited and declared that all acts, conditions and things required to exist, to happen and to be performed precedent to the passage of the resolution and said Ordinance and to the issuance of this note, exist, have happened and have been performed in regular and due form and time as re- quired by the laws and the Constitution of the State of Florida applicable thereto, and that the issuance of this note does not violate any constitutional, statutory or charter limitations or provisions. IN WITNESS WHEREOF, The City of Okeechobee, Florida, has issued this note and caused the same to be signed by its Mayor and countersigned and attested by its City Clerk, and its corporate seal to be hereunto impressed, all as of this day of , X972. CITY OF OKEECHOBEE, FLORIDA By Mayor COUNTERSIGNED AND ATTESTED: City Clerk (SEAL) - 2 -