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Home My WebLink AboutR-91-0645i - _-. - - _. _-.-_____..._ �.� �-.. ..�-.__ i` � � .. 1. _ _ :�4$�� First Union National Bank of Floriaa, successuL j a;A-- � National Bank, as depository of the Debt Service Reserve Account (the "Bank"), a Surety Bond of the Insurer (the ,Surety Bond") in satisfaction of the debt service reserve requirement established under the Bond Resolution; and WHEREAS, the City, the Bank and the Insurer are, entering into a Financial Guaranty Agreement (the "Financial Guaranty Agreement") pursuant to which the Insurer will issue the Surety Bond and the City will make certain payments in respect of the Surety Bond; and WHEREAS- under the Constitution and laws of the State and a resolution adopted by the City Commission of the City on this ,a date (the "Surety Bond Resolution") approving, among other _ things, the entry by the City into the Financial Guaranty Agreement, the City is authorized to do or cause to be done all the acts and things herein provided or required to be. done as hereinafter covenanted; and WHEREAS, all acts, conditions and.: things. required by the Constitution and laws of the State, the:Surety:.,Bond Resolution F and the Bond Resolution to happen, exist.; and be. performed precedent to and in the execution and :deliver of his°:First P y k Supplemental- Resolution have. happened, -exist and have -been, performed as so required in.order to make this First Supplemental Resolution valid_ and binding for: the security of the Bonds in Y ` accordance with their respective terms; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF:THE`CITY. OF MIAMI , FLORIDA: " Section 1. Definitions. All, capitalized ;terms not ... s herein defined shall be as defined in the Bond Resolution. 3x Sec ions 2 MAUdMOAts definitidA The ca1lQ inq° new shah be .neexted .n e` Y r ''Rank" shall mean First Union National Bank of riorida, successor to Florida National Rank, Fort Lauderdale, Plorida, as depository of the Debt Service Reserve Account established hereunder, and its - successors and assigns, "Debt,Service .Reserve Requirement" shall mean, at any time, the amount which is required under Section 304(D)(3) to be, credited to the Debt Service Reserve Account established hereunder. "Reserve Account Insurance Policy" shall mean the insurance policy, surety bond or other acceptable evidence of insurance, if any, deposited in the Debt Service Reserve Account in lieu of or in partial substitution for cash or securities on deposit therein. The issuer providing such insurance shall be a municipal bond insurer rated, at the time of deposit in the Debt Service Reserve Account, in the highest rating category of either Moody's Investors Service, Inc. or any successors thereof or Standard & Poor 's Corporation or any successors thereof. "Reserve Account Letter of Credit" shall mean the irrevocable, transferable letter of credit, if any, deposited in the Debt Service Reserve Account in lieu of or in partial substitution for cash or securities on deposit therein. The issuer providing such letter of credit shall be a banking association, bank or trust company or branch thereof rated, at the time of deposit in to the Debt Service Reserve Account, in the highest rating category of either Moody's Investors Service, Inc. or any successors thereof or .Standard & Poor's Corporation or any successors thereof. - (b) Section 304(D)(31 shall be amended by inserting the following paragraphs after the second paragraph: "If a disbursement is made pursuant to -a Reserve Account. Insurance Policy or a Reserve. Account Letter _- of Credit, the City shall be obligated'. either (i) to - reinstate the maximum limitsof such Reserve Account ce PolicyAccount of Credit, Reserveinto Debtetter ors, (ii to deposit theService. Reserve Account, funds in the amount of the disbursement made under stch Reserve Account Insurance Policy or Reserve Account < Letter of Credit, or a. combination of such alternatives, so, that the amount in the Debt ;Service : Reserve Account equals the Debt Service Reserve' Requirement. At the written request of the City.. the -1 Bank shall apply amounts.credited to the Debt Service - Reserve Account pursuant to this Section to the -( satisfaction of the obligation of the City to reimburse the issuer of any Reserve Account Insurance Policy, Reserve Account Letter of Credit, `any amount -- that is due to such issuer under the terms of any financial guaranty agreement, credit -agreement, reimbursement agreement..or,,other similar agreementn, respect of -such Reserves Account Insurance Policy. .Or Reserve Accounty Letter of Credit, but -only so1ong_as such reimbursement shall first be applied by .. snch issuer to reinstate the coverage of such Reserve Account Insurance Policy or Reserve Account Letter'of Credit, but not to exceed the coverage limit .thereof, <} The City, shall give such direction to the. Bank whenever- an amount is so credited to the Debt ; Service Reserve Account at a,t3me when the City has such an unsatin fled reimbursement obligation. So, long -as any such reimbursement amount is owing to the issuer of any such Reserve Account Insurance Policy or Reserve. Account Letter of Credit, a the City► Ohall not cancel. � discharge or otherwise terminate any,o� the covens�ts [ b* 0 contained in thin Bond Resolution pertaining to the payment of any Reserve Account Insurance Policy or Reserve Account Letter of Credit or other similar obligation. The provisions of this paragraph and the three paragraphs that follow it apply only with respect to the Surety Bond (the "Surety Bond") issued by the Insurer with respect to the Bonds outstanding on the date the Surety Bond is issued. In the event that, on the third day (or if such day is not a business day, then on the next preceding business day) preceding any date on which principal of or interest on the Bonds shall, be due and payable, there are not credited to or on deposit in the Interest Account, the Principal Account, the ,Bond Redemption Account or the Debt Service Reserve Account sufficient moneys to pay all principal of and interest on the Bonds, the Bank shall immediately deliver to the Insurer, or its designee, on the same business day a document for payment (which may be delivered by prepaid telecopy, telex or telegram) in the form set forth as Attachment I to the Surety Bond in the manner set forth in the Surety Bond, of the amount of the deficiency. In the event that, at the time of giving any, such notice, there shall be an additional Reserve Account Insurance Policy or Reserve Account Letter of Credit credited to the Debt Service Reserve Account, the City shall, as part of such notice, inform the Insurer of the pro rata portion (as hereinafter defined) of such deficiency allocable to the Surety Bond and'shall take such steps as and when required under the terms of such other Reserve Account Insurance Policy or Reserve Account Letter of Credit in order to cause payment under such other Reserve Account Insurance Policy, or Reserve Account Letter of Credit of the pro rata portion of such deficiency allocable to it not later, than the time when the corresponding payment is made under the. Surety Bond. For purposes of -the preceding sentence, "pro rata portion" means the portion of such deficiency allocable to a_particular Reserve Account Insurance Policy or Reserve Account Letter of Credit (including the Surety Bond). calculated_by -multiplying the amount of such deficiency by a fraction, the .,numerator of which is equal to the maximum amount of such Reserve Account Insurance Policy or Reserve Account Letter of Credit and the denominator of which is equal to the sum of the maximum amounts of all Reserve Account Insurance Policies or Reserve Account Letters of Credit then on deposit in the Debt Service Reserve Account. If the deficiency is made up _in whole ,or in part prior to or on the scheduled payment date for the Bonds, the Bank shall notify the Insurer, or its designee in the same manner as is set forth in the immediately preceding paragraph. In addition, 'if the Bank has received actual notice from any Bondholder that it has been required to disgorge payments of principal of or interest on the Bonds to a trustee in bankruptcy or creditors or others pursuant to a final judgment by a court of competent jurisdiction that such.payment constitutes a voidable preference to such Bondholder within the meaning of any applicable bankruptcy laws, then the Bank shall notify the Insurer or its designee of such fact by telephone or telegraph confirmed in writing by registered or72 certified mail. - t The City and the Bank shall utilize moneys credited to the Interest Account, the Pr,hcpal. 4rk ■ w ,y r F Acoount� the tO td Redemption Ac count and the Debt the extend such moneys are service Reserve ,ocount r to and under the terms of this Bond available permitted be se used, to satisfy and obligation atiution to ohe~w.e rewired to be satisfied by the Surety fond before utilising any moneys drawn upon the Surety Action. The Mayor, price . section 3. Yrtc;dntat city Manager, Assistant City Manager, Director of Finance , Ma or, y city Clerk and other officials and officers of the y City Attorneyr hereby authorized to execute and deliver such further City are opinions and documents and to take such agreements, instruments, further action as may be necessary and desirable to effectuate Y._ ' and carry out the intent and purposes of the Surety Bond, the } j Financial Guarantee Agreement and this First Supplemental Resolution. l i d Pr,--,,s i ons_. If Section 4. Severab; t v of In--' i ara rah clause or provisions of this First section, p g P any Su lemental Resolution shall for any reason be held to be PP the invalidity or unenforceability of invalid or unenforceabler such section, paragraph, clause or provision shall not affect any remaining provisions hereof, but this First Supplemental be construed and enforced as if such illegal or - Resolution shall = invalid provision or provisions had not been contained herein. 3, C�Any resolution Section 5. Repealing ause. with this First Supplemental Resolution is hereby. - inconsistent" ' to the extent of such inconsistency. ?t� repealed Ef ect. This First Section 5. gim of Takincr Supplemental Resolution shall become effective immediately upon = its adoption. = day of r , 1991. _ PASSED AND ADOPTED this lit y XAVIER L. UAREZ, MAYOR' �i G - f V .. TT*HIRAI l Yk tk CITY CLERIC tttTTT ..;fir. r,� Y� T, Y r*fir i'x r t' n - t Y IF 01 CITY O MIAM�°It3tl�► 2 1 = e . INTER -OFFICE MEMORANDUM to . Honorable Mayor and McYttbers DATA :tl i'f the ty Canmission MAI 1 1 su et : i.ty coimi�►iss�ion ji, stidli Item Cesar 14. ddio €1SFEgENCE$ Pn City Manager �NCLCSURE$: PIFCnNDATIOI�s It is respectfully recommended that the attached resolution 89-443-1 adopted on making certain amendments to Resolution No. the bonds hereinafter May lit 1989 authorizing the issuance of d amended Resolution mentioned, as. supplemented an540 appropriate officers of the adopted on June 7, 1989; authorizing City to take such incidental actions as shall be necessary and Debt Service appropriate to accomplish the issuanceof the ity and Reserve Account Surety Bond; providing severab be approved. providing for an effective date, - BACKGROUND• The, City issued $6,500,O0o Guaranteed En titlement`ee insured venue Bonds Series 1989, on June 15, 1989. The bonds were making the Corporation (MBIA), Municipal Bond.Investors Assurance '- bonds AAA rated. ' The trust indenture for the bonds required a debt service reserve which account °.equivalent to. the highest annual debt service approximates $G12,000. - At this time MBtA has agreed to issue a reserve account surety in the debt' service - bond, in 'substitution for the cash on deposit the surety bond amounts to reserve account, at a premium of 4% of released by the placement •of the surety be-paid..:.from the 'funds bond. The attached resolution specifies the procedure.,.ta be "surety bond. -, followed if'funds';w"ere to be disbursed against the the This resolution is companion to resolution authorizing on deposit. The _ substitution of the surety bond for cash the, General fund $587,500F - issuance of the surety bond will save 'payments within the next twelve months. in=debt service 3 s x �s ° h r� Z - g..7 7. 'f it a�'-