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1987-08 Water/Sewer BondsRESOLUTION 87-8 A RESOLUTION OF THE CITY OF OKEECHOBEE, FLORIDA, AMENDING VARIOUS PROVISIONS OF RESOLUTION NO. 87-1 OF THE CITY, AS AMENDED BY RESOLUTION NO. 87-7 OF THE CITY; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Okeechobee, Florida, did on January 20, 1987, duly adopt Resolution No. 87-1, authorizing the issuance of not exceeding $9,885,000 Water and Sewer Refunding and Improvement Revenue Bonds, Series 1987 (the 'Bonds"), of the City, as amended and supplemented by Resolution No. 87-7 duly adopted by the City on July 8, 1987 (collectively, the "Resolution"); and WHEREAS, the City desires to amend certain provisions of the Resolution as requested by AMBAC Indemnity (as defined in the Resolution); NOW THEREFORE, FLORIDA: BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OKEECHOBEE, Section 1. AMENDMENTS TO THE RESOLUTION. Section 16 of the Resolution is hereby amended, in part, as follows: 'Section 16. COVENANTS OF THE ISSUER. Until all principal of and interest on the Bonds shall have been paid or provided for as herein permitted, the Issuer covenants with the Bondholders as follows: s s s B. DISPOSITION OF REVENUES All funds at any time remaining on deposit in the Revenue Fund shall be disposed of on or before the twentieth day of each month, commencing in the month immediately following the delivery of the Series 1987 Bonds, only in the following manner and in the following order of priority: s s s (3) Moneys remaining in the Revenue Fund shall next be applied by the Issuer to maintain a Reserve Account, which Reserve Account is hereby created and established, in a sum equal to and sufficient to pay the Maximum Bond Service Requirement on all outstanding Bonds becoming due in any ensuing Fiscal Year, all or a portion of which such sum may be initially provided from the proceeds of the sale of the Bonds and/or other moneys of the Issuer. If the Bonds or any Additional Bonds outstanding are insured the Issuer shall fully fund the Reserve Account on the date of issuance thereof, and if none of the Bonds or Additional Bonds outstanding are insured the Issuer may either fund the Reserve Account on the date of issuance thereof or may thereafter deposit into said Reserve Account an amount equal to one -twelfth (1/12) of twenty per cent (20%) of the difference between the amount, if any, so deposited upon the delivery of LKL-07/15/87-94B-2547 -I- the Bonds and the amount of the Maximum Bond Service Requirement on all outstanding Bonds becoming due in any ensuing Fiscal Year. No further payments shall be required to be made into such Reserve Account when there has been deposited therein and as long as there shall remain on deposit therein a sum equal to the Maximum Bond Service Requirement on all outstanding Bonds becoming due in any ensuing Fiscal Year. Any withdrawals from the Reserve Account shall be subsequently restored from the first moneys available in the Revenue Fund after all required current payments into the Sinking Fund and into the Reserve Account, including all deficiencies for prior payments, have been made in full. Moneys in the Reserve Account shall be used only for the purpose of the payment of maturing principal (including Amortization Installments) of or interest on the Bonds when the moneys in the Sinking Fund are insufficient therefor, and for no other purpose. Upon the issuance by the Issuer of any Additional Bonds under the terms, limitations and conditions provided in this Resolution, the payments into the Reserve Account shall be increased so that the amount on deposit therein shall be equal to the Maximum Bond Service Requirement on all Bonds outstanding and to be outstanding. Whenever the amount on deposit in the Reserve Account exceeds the Maximum Bond Service Requirement on all Bonds then outstanding, the excess shall immediately be withdrawn and deposited into the Sinking Fund. The Issuer shall not be required to make any further payments into the Sinking Fund or into the Reserve Account when the aggregate amount of moneys in the Sinking Fund and the Reserve Account are at least equal to the aggregate principal amount of Bonds then outstanding, plus the amount of interest then due or thereafter to become due on the Bonds then outstanding. Notwithstanding the foregoing provisions, in lieu of the required deposits of Revenues into the Reserve Account, but only with the consent of AMBAC, the Issuer may cause to be deposited into the Reserve Account a surety bond or an insurance policy issued by a reputable and recognized insurer for the benefit of the Bondholders in an amount equal to the difference between the Maximum Bond Service Requirement and the sums then on deposit in the Reserve Account, if any, which surety bond or insurance policy shall be payable (upon the giving of notice as required thereunder) on any interest payment date on which a deficiency exists which cannot be cured by funds in any other account held pursuant to this Resolution and available for such purpose. The insurer providing such surety bond or insurance policy shall be an insurer whose municipal bond LKL-07/13/87-94B-2547 -2- insurance policies insuring the payment, when due, of the principal of and interest on municipal bond issues results in such issues being rated in the highest rating category by either Standard & Poor's Corporation or Moody's Investors Service, Inc., or their successors. If a disbursement is made from a surety bond or an insurance policy provided pursuant to this paragraph, the Issuer shall be obligated to either reinstate the maximum limits of such surety bond or insurance policy immediately following such disbursement or to deposit into the Reserve Account, as herein provided in this paragraph for restoration of withdrawals from the Reserve Account, funds in the amount of the disbursement made under such policy, or a combination of such alternatives." Section 2. RESOLUTION TO REMAIN IN EFFECT. All other Sections and provisions of the Resolution, not expressly amended herein, shall remain in full force and effect. Section 3. SEVERABILITY OF INVALID PROVISIONS. If any one or more of the covenants, agreements or provisions herein contained shall be held contrary to any express provisions of law or contrary to the policy of express law, though not expressly prohibited, or against public policy, or shall for any reason whatsoever be held invalid, then such covenants, agreements or provisions shall be null and void and shall be deemed separable from the remaining covenants, agreements or provisions and shall in no way affect the validity of any of the other provisions hereof or of the Bonds issued hereunder. Section 4. REPEALING CLAUSE. All ordinances or resolutions or parts thereof of the Issuer in conflict with the provisions herein contained are, to the extent of such conflict, hereby superseded and repealed. Section 5. EFFECTIVE DATE. This resolution shall take effect immed- iately upon its adoption. LKL-07/13/87-94B-2547 -3- Introduced and adopted in regular session assembled this 21st day of July , 1987. CITY OF OKEECHOBEE, FLORIDA Mayor (SEAL) Attest: City Clerk LKL-07/13/87-948-2547 -4-