Reso 2010-1538 - Laserfiche WebLink

Home Browse Search

(a) Use of Proceeds. The City covenants that the proceeds from the Bonds will be used only to finance the Project and to pay closing costs. The City represents that, as of the date of issuance of the Bonds, there are no other bonds or obligations of the City secured by a covenant to budget and appropriate from Non-Ad Valorem Revenues, other than (i) the $20,000,000 City of Sunny Isles Beach, Florida Promissory Note, dated June 8, 2009, (ii) a loan in the original principal amount of $10,320,000 made on November 30, 2001 from a portion of the proceeds of the Florida Municipal Loan Council Revenue Bonds, Series 2001A and (iii) a loan in the original principal amount of$17,945,000 made on November 22,2002 from a portion of the proceeds of the Florida Municipal Loan Council Revenue Bonds, Series 2002C (collectively, (i), (ii) and (iii) are hereinafter referred to as the "Prior Debt"). (b) Notice of Defaults. The City shall within fifteen (15) days after it acquires knowledge thereof, notify the Bank in writing upon the happening, occurrence, or existence of any Event of Default, and any event or condition which with the passage of time or giving of notice, or both, would constitute an Event of Default, and shall provide the Bank with such written notice, a detailed statement by a responsible officer of the City of all relevant facts and the action being taken or proposed to be taken by the City with respect thereto. (c) Records. The City agrees that any and all records of the City shall be open to inspection by the Bank or its representatives at all reasonable times at the offices of the City. (d) Maintain Existence. The City shall do all things lawfully within its power to maintain its existence as a municipal corporation of the State, and shall not voluntarily dissolve. (e) Notice of Liabilities. The City shall promptly inform the Bank of any actual or potential contingent liabilities or pending or threatened litigation of any amount that could reasonably be expected to have a material and adverse effect upon the financial condition of the City. (1) Insurance. The City shall maintain such liability, casualty and other insurance as is reasonable and prudent for similarly situated municipal corporations of the State and shall upon the request of the Bank, provide evidence of such coverage to the Bank. (g) Comply with Laws. The City is in compliance with and shall comply with all applicable federal, state and local laws and regulatory requirements. (h) Taxes. In the event the Bonds, this Agreement or any other Loan Document should be subject to the excise tax on documents or the intangible personal property tax, or any similar tax, of the State of Florida, the City shall pay such taxes or reimburse the Bank for any such taxes paid by it. (i) Investments. The City shall invest only III obligations permitted by Section 218.345, Florida Statutes. {MI883440_2} 5