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November 21, 2008 Limited General Obligation Bond --- COLLIER COUNTY, FLORIDA (CONSERVATION COLLIER PROGRAM) $13,244,204 LIMITED GENERAL OBLIGATION BOND, SERIES 2008 DATED: NOVEMBER 21, 2008 . '"'\....-. / "'- $13,244,204 COLLIER COUNTY, FLORIDA LIMITED GENERAL OBLIGATION BOND (CONSERVATION COLLIER PROGRAM), SERIES 2008 List of Closing Documents November 21,2008 1. Certified copy of 2. 3. 4. 5. 6. 7. 8. 9. '-./ 10. (a) Resolution No. 2002-265, adopted on June 11, 2002, calling for a bond referendum election. (b) Ordinance No. 2004-78, enacted on December 14, 2004, authorizing the issuance of Limited General Obligation Bonds from time to time. (c) Resolution No. 2004-383, adopted on December 14, 2004, authorizing the issuance of Limited General Obligation Bonds and, particularly, the Series 2005A Bonds. (d) Resolution No. 2008-337, adopted on November 18, 2008, supplementing Resolution No. 2004-383 and authorizing the issuance of the Series 2008 Bond. Proposal of SunTrust Equipment Finance & Leasing Corp. Acceptance and Interest Rate Lock Letter of the County dated October 22, 2008. General Certificate. Signature Certificate. Certificate as to Arbitrage and Certain Other Tax Matters. Certificate Required by Section 5.01(B) of the Bond Resolution. Certificate as to Specimen Bond. Certificate of Delivery and Payment. Information Return to Internal Revenue Service. "-- 11. Advance Notice of Bond Sale. 12. Division of Bond Finance Information Form. 13. Affidavit of Publication regarding Notice of Bond Referendum Election. 14. Section 218.385, Florida Statutes, Disclosure Letter and Truth-in-Bonding Statement. 15. Wire Instruction Letter. 16. Approving Opinion of Nabors, Giblin & Nickerson, P.A., Bond Counsel. 17. Reliance Opinion of Nabors, Giblin & Nickerson, P.A., Bond Counsel. 18. Opinion of Jeffrey Klatzkow, Esq., County Attorney. '-- 1 '-.-- CERTIFICATE I, Derek M. Johnssen, the undersigned Deputy Clerk of the Board of County Commissioners of Collier County, Florida (the "County"), DO HEREBY CERTIFY: (a) Resolution No. 2002-265 entitled "A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF COLLIER, FLORIDA, ORDERING AND PROVIDING FOR HOLDING OF A REFERENDUM ELECTION TO DETERMINE IF THE ELECTORS OF THE COUNTY OF COLLIER, FLORIDA APPROVE THE LEVY OF AN ADDITIONAL AD VALOREM TAX NOT EXCEEDING 1/4 MILL FOR 10 YEARS AND THE ISSUANCE OF NOT EXCEEDING $75,000,000 LIMITED TAX GENERAL OBLIGATION BONDS, TO BE ISSUED IN ONE OR MORE SERIES, PAYABLE THEREFROM, IN ORDER TO FINANCE ACQUISITION AND MANAGEMENT OF ENVIRONMENTALL Y SENSITIVE LANDS FOR THE PROTECTION OF WATER RESOURCES, WILDLIFE HABITAT, AND PUBLIC OPEN SPACE IN PERPETUITY, AND PURPOSES INCIDENTAL THERETO; PROVIDING CERTAIN OTHER MATTERS IN CONNECTION THEREWITH; PROVIDING AN EFFECTIVE DATE," adopted at a regular meeting of the Board of County Commissioners duly called and held on June 11, 2002, at which meeting a quorum was present and acting throughout, which resolution has been compared by me with the original thereof as recorded in the Minute Book of said County and that said resolution is a true, complete and correct copy thereof, and said resolution has been duly adopted and has not been further modified, amended or repealed, and is in full force and effect on and as of the date hereof in the form attached hereto. '-' (b) Ordinance No. 2004-78 entitled "AN ORDINANCE AUTHORIZING THE ISSUANCE OF LIMITED GENERAL OBLIGATION BONDS (CONSERVATION COLLIER PROGRAM) FROM TIME TO TIME PAYABLE FROM THE LEVY OF AN AD VALOREM TAX LEVIED UPON ALL TAXABLE REAL PROPERTY IN THE COUNTY IN AN AMOUNT NOT TO EXCEED ONE-QUARTER OF ONE MILL FOR THE PRINCIPAL PURPOSE OF ACQUIRING CERTAIN ENVIRONMENTALLY SENSITIVE LANDS WITHIN THE COUNTY; PROVIDING FOR VARIOUS RIGHTS AND REMEDIES OF THE BONDHOLDERS; PROVIDING THAT THE BONDS AUTHORIZED HEREUNDER WILL BE LIMITED GENERAL OBLIGATIONS OF THE COUNTY; AND PROVIDING AN EFFECTIVE DATE," enacted at a regu,lar meeting of the Board of County Commissioners duly called and held on December 14, 2004, at which meeting a quorum was present and acting throughout, which ordinance has been compared by me with the original thereof as recorded in the Minute Book of said County and that said ordinance is a true, complete and correct copy thereof, and said ordinance has been duly enacted and has not been further modified, amended or repealed, and is in full force and effect on and as of the date hereof in the form attached hereto. '-.../ '-- (c) Resolution No. 2004-383 entitled "A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA AUTHORIZING THE ISSUANCE OF NOT EXCEEDING $75,000,000 IN AGGREGATE PRINCIPAL AMOUNT OF COLLIER COUNTY, FLORIDA LIMITED GENERAL OBLIGATION BONDS (CONSERVATION COLLIER PROGRAM), SERIES 2005A, TO FINANCE THE ACQUISITION OF CERTAIN ENVIRONMENTALLY SENSITIVE LANDS WITHIN THE COUNTY; PROVIDING FOR THE ISSUANCE OF ADDITIONAL LIMITED GENERAL OBLIGATION BONDS FROM TIME TO TIME FOR THE PRINCIPAL PURPOSE OF FINANCING THE ACQUISITION OF OTHER ENVIRONMENTALLY SENSITIVE LANDS WITHIN THE COUNTY; PROVIDING FOR THE PAYMENT OF SAID BONDS FROM AD VALOREM TAXATION LEVIED IN AN AMOUNT WHICH SHALL NOT EXCEED ONE-QUARTER OF ONE MILL ON ALL TAXABLE PROPERTY IN THE COUNTY; MAKING CERTAIN COVENANTS AND AGREEMENTS IN CONNECTION THEREWITH; PROVIDING FOR THE RIGHTS OF THE HOLDERS OF SUCH BONDS; AUTHORIZING THE AWARDING OF SAID SERIES 2005A BONDS PURSUANT TO A PUBLIC BID; DELEGATING CERTAIN AUTHORITY TO THE CHAIRMAN FOR THE AWARD OF THE SERIES 2005A BONDS AND THE APPROVAL OF THE TERMS AND DETAILS OF SAID SERIES 2005A BONDS; AUTHORIZING THE PUBLICATION OF A NOTICE OF SALE FOR THE SERIES 2005A BONDS OR A SUMMARY THEREOF; APPOINTING THE PAYING AGENT AND REGISTRAR FOR SAID SERIES 2005A BONDS; AUTHORIZING THE DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT AND THE EXECUTION AND DELIVERY OF AN OFFICIAL STATEMENT WITH RESPECT TO THE SERIES 2005A BONDS; AUTHORIZING THE EXECUTION AND DELIVERY OF A CONTINUING DISCLOSURE CERTIFICATE WITH RESPECT TO THE SERIES 2005A BONDS; AUTHORIZING MUNICIPAL BOND INSURANCE FOR THE SERIES 2005A BONDS; AND PROVIDING AN EFFECTIVE DATE," adopted at a regular meeting of the Board of County Commissioners duly called and held on December 14, 2004, at which meeting a quorum was present and acting throughout, which resolution has been compared by me with the original thereof as recorded in the Minute Book of said County and that said resolution is a true, complete and correct copy thereof, and said resolution has been duly adopted and has not been further modified, amended or repealed and is in full force and effect on and as of the date hereof in the form attached hereto. (d) Resolution No. 2008-337 entitled "A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, SUPPLEMENTING RESOLUTION NO. 2004-383, WHICH RESOLUTION NO. 2004- 383 AUTHORIZED, AMONG OTHER THINGS, THE ISSUANCE FROM TIME TO TIME OF COLLIER COUNTY, FLORIDA LIMITED GENERAL OBLIGATION --- BONDS (CONSERVATION COLLIER PROGRAM) TO FINANCE THE ACQUISITION OF ENVIRONMENT ALL Y SENSITIVE LAND; ACCEPTING THE PROPOSAL OF SUNTRUST EQUIPMENT FINANCE & LEASING CORP. TO PROVIDE THE COUNTY WITH A LOAN TO FINANCE THE ACQUISITION OF CERTAIN ENVIRONMENTALL Y SENSITIVE LAND; AUTHORIZING THE ISSUANCE OF THE COLLIER COUNTY, FLORIDA LIMITED GENERAL OBLIGATION BOND (CONSERVATION COLLIER PROGRAM), SERIES 2008 IN AN AGGREGATE PRINCIPAL AMOUNT OF NOT EXCEEDING $21,000,000 TO SUNTRUST EQUIPMENT FINANCE & LEASING CORP. IN ORDER TO EVIDENCE SUCH LOAN; AUTHORIZING SUCH BOND TO BE PAYABLE FROM AD VALOREM TAXATION LEVIED IN AN AMOUNT NOT TO EXCEED ONE- QUARTER OF ONE MILL ON ALL TAXABLE PROPERTY WITHIN THE COUNTY; MAKING CERTAIN COVENANTS AND AGREEMENTS WITH RESPECT TO SAID BOND; DELEGATING CERTAIN AUTHORITY TO THE CHAIRMAN AND OTHER OFFICERS OF THE COUNTY; APPOINTING THE COUNTY AS PAYING AGENT AND REGISTRAR FOR SAID BOND; AUTHORIZING THE EXECUTION AND DELIVERY OF OTHER DOCUMENTS IN CONNECTION THEREWITH; AND PROVIDING AN EFFECTIVE DATE," adopted at a regular meeting of the Board of County Commissioners duly called and held on November 18, 2008, at which meeting a quorum was present and acting throughout, which resolution has been compared by me with the original thereof as recorded in the Minute Book of said County and that said resolution is a true, complete and correct copy thereof, and said resolution has been duly adopted and has not been further modified, amended or repealed and is in full force and effect on and as of the date hereof in the form attached hereto. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the County as of this 21st day of November, 200 ,0''''; 1..)' Hi/let ." \. \ ""'. "t .." \' , ,i C r:- 'I" "-....... ,_) ~ J It.." 0 ~ III ~'.. " ~" ", ,...... r-, .. --, a "6 (, -', :;.' h' 1..>.. (';.. ;, ... jJ I ,~ ,.. .:" t"':.: 0') '^ '';. ::- ::-- 1" ~~ -:. .-- t lerk of the Board of County issioners of Collier County, Florida ~ --- RESOLUTION NO. 2002- 265 A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF COLLIER, FLORIDA, ORDERING AND PROVIDING FOR HOLDING OF A REFERENDUM ELECTION TO DETERMINE IF THE ELECTORS OF THE COUNTY OF COLLIER, FLORIDA APPROVE THE LEVY OF AN ADDITIONAL AD VALOREM TAX NOT EXCEEDING 1/4 MILL FOR 10 YEARS AND THE ISSUANCE OF NOT EXCEEDING $75,000,000 LIMITED TAX GENERAL OBLIGATION BONDS, TO BE ISSUED IN ONE OR MORE SERIES, PAYABLE THEREFROM. IN ORDER TO FINANCE ACQUISITION AND MANAGEMENT OF ENVIRONMENT ALLY SENSITIVE LANDS FOR THE PROTECTION OF WATER RESOURCES, WILDLIFE HABITAT, AND PUBLIC OPEN SPACE IN PERPETUITY.AND PURPOSES INCIDENTAL THERETO; PROVIDING CERTAIN OTHER MATTERS IN CONNECTION THEREWITH; PROVIDING AN EFFECTIVE DATE, 12A WHEREAS, Collier County recognizes the need to plan for future growth and desires to initiate a long-term program, known as Conservation Collier, to acquire and manage environmentally sensitive land in perpetuity for the protection of water resources, wildlife habitat and public open space, and WHEREAS, the history of Collier County is marked with efforts to conserve the County and region's unique ecological character and to preserve valuable ecosystems for future generations; and WHEREAS, it remains the goal of Collier County to conserve, manage and where necessary, restore the natural environment and provide appropriate access for the enjoyment and education of the public; and WHEREAS, Florida's groundwater, surface waters and related ecosystems are under pressure due to population growth and economic expansion and resolUces are needed to ensure that sufficient quantities of water are available to meet the current and future needs of the natlUal systems and citizens of the County; and WHEREAS, access to public lands support a broad range of outdoor recreational opportunities and the development of necessary infrastructure, where compatible with the resource values and management objectives for such lands, promotes an appreciation for Florida's natural assets and improves the quality of life; and WHEREAS, the need for high-quality resource based outdoor opportunities, greenways, trails and open space have not been fully met by previous acquisition programs and additional emphasis on acquiring, protecting, preserving and restoring open space, greenways and providing public access is necessary; and WHEREAS, acquisition to protect the integrity of ecological systems provide multiple benefits, including preservation of habitat, recreation space for urban as well as rural areas, and water recharge; and WHEREAS, a long-term acquisition and management program is needed and funding is '--- ~ required. and 12A WHEREAS, a long-term financial commitment to managing public lands must accompany any new land acquisition program to ensure that the natural resource values of such lands are protected and that the public has the opportunity to enjoy the lands to their fulIest potential; and WHEREAS, if said funding is authorized by the voters of ColIier County and the Board of County Commissioners, in its discretion, levies the necessary millage, it is in the public's interest to have any resulting acquisition and management program procedurally implemented in a manner that sets specific guidelines for the program to ensure effective and successful completion of the Conservation Collier program. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, IN OPEN MEETING DULY ASSEMBLED IN THE BOARD OF COUNTY COMMIS~IONERS CHAMBERS AT 3301 EAST TAMIAMI TRAIL, NAPLES, FLORIDA, THIS /L=..~A Y OF~ 2002, A.D" AS FOLLOWS: SECTION I. Findings It is found and declared that: (A) This Resolution is adopted pursuant to applicable provisions of law, (B) It is desired to ask the electors of the County if they desire the Board ofCounty Commissioners to authorize the annual levy of an additional ad valorem tax not exceeding 1/4 mill for ten years to fund the acquisition, preservation, and management of environmentally sensitive lands for the protection of water resources, wildlife habitat and public open space suitable for resource based recreation from taxes collected and on deposit and from the proceeds of the issuance of short andlor long term indebtedness authorized herein payable from the aforesaid additional ad valorem tax. (C) The expenditures authorized serve a paramount public purpose, (D) It is in the best interest of the County to issue such bonds as are necessary or desirable to finance projects payable as heretofore described. (E) The recitations of the preamble are hereby adopted as findings herein. SECTION II. Referendum Election Ordered. A referendum election be and is hereby ordered to be held in Collier County. Florida, on November 5. 2002, to determine whether or not the levy of an additional ad valorem tax and issuance of limited tax general obligation bonds for the afore said purposes shall be approved by the electors of the County. SECTION III. VotiDlz, The polls will be open at the voting places on the date of such election from 7 :00 a,m. to 7:00 p.m. on the same day, All qualified electors residing within the County shall be entitled and permitted to vote at such an election as hereinafter provided, The referendum election shall be beld and conducted in the place or places prescribed by law for general elections in the County. "- 'The referendum election shaH be held and conducted in the manner prescribed by law for holding general elections in the County, and the County Manager and Supervisor of Elections are 2 12A directed to take all necessary measures to conduct the election in all manner required by law, The returns shall be properly canvassed by a county canvassing board to be comprised of a County Court Judge, one member ofthe Board of County Commissioners and the Supervisor of Elections (collectively, the "Canvassing Board") and all procedures and requirements of state law and other applicable law shall be complied with for the purpose of conducting the computation of ballots and completion of election procedures. SECTION IV. Ballots, The ballots to be used in the referendum election shall be on plain white paper, or otherwise permitted electronic format, with a written description of the proposed issuance of the bonds and levy of the tax, and which will provide facilities for qualified electors to vote for or against the issuance of the Bonds paid for by the levy of the tax as they may choose, Voting equipment shall be used at such referendum election or the Supervisor of Elections deems such other means as appropriate and permitted by law. The question appearing on the ballots to be used in the referendum election shall be in substantially the following form: BALLOT CONSERVATION COLLIER: ACQUISITION AND MANAGEMENT OF ENVIRONMENTALLY SENSITIVE, WATER RESOURCE LANDS, AND PUBLIC OPEN SPACE SHALL COLLIER COUNTY BE AUTHORIZED TO ACQUIRE, PRESERVE AND MANAGE ENVIRONMENT ALL Y SENSITIVE LANDS FOR THE PROTECTION OF WATER RESOURCES, WILDLIFE HABITAT. AND PUBLIC OPEN SPACE BY ISSUING BONDS UP TO SEVENTY-FNE MILLION DOLLARS PAYABLE FROM AD VALOREM TAXES NOT EXCEEDING ONE QUARTER OF ONE MILL FOR A PERIOD OF TEN (10) YEARS, AND BEARING INTEREST AT A RATE NOT EXCEEDING THE MAXIMUM LEGAL RATE? YES (FOR BONDS) NO (AGAINST BONDS) SECTION V. Absentee Voting, Adequate provision shall be made for absentee voting. Ballots shall be used suitable for absentee voting at the election, The form of ballots to be used in the election for absentee voters shall be in substantially the fonn set out above and in accordance with the Florida Election Code, " ""- SECTION VI. Results of Election. Returns of the votes cast at the election shall be made to and canvassed by the Canvassing Board and the Canvassing Board shall declare the results and certify the same to the 3 12A County Manager to be recorded in the minutes of the County. If a majority of the votes cast at - - such election in respect to the levy of the tax and issuance ofthe bonds shall be "YES" (For Bonds), such bond issuance shall be approved, and bonds shall be issued by the County pursuant to the terms and provisions of applicable law, ordinances, or resolutions, Regardless of the results of the election, the Supervisor of Elections is hereby directed to submit such results to the Department of State pursuant to Section 100,351, Florida Statutes. SECTION VII. Publication of Resolution and Notice, At least 30 days' notice of the election shall be published in the Naples Daily News, or any other newspaper of general circulation within the County, at least twice, once in the fifth week and once in the third week prior to the week in which the election is held, in the manner provided in Section 100.342, Florida Statutes. The notice of election shall be in substantially the following form: NOTICE OF TAX AND BOND REFERENDUM COUNTY OF COLLIER, FLORIDA, ON NOVEMBER 5, 2002 NOTICE IS HEREBY GIVEN THAT A COUNTY OF COLLIER, FLORIDA, TAX AND BOND REFERENDUM will be held on the 5th day of November, 2002, in the County of Collier, Florida, for the purpose of determining whether or not an additional ad valorem tax not exceeding V. mill shall be levied annually for ten (10) years and limited tax general obligation bonds of the County issued in one or more series, payable there from shall be issued in the aggregate principal amount of not exceeding $75,000,000, bearing interest. payable at such interest rate or rates not exceeding the maximum rate permitted by law and redeemable as shall be determined at or before the time of sale thereof, maturing over a period of not to exceed ten years from the date of the bonds, to finance acquisition and management of environmentally sensitive lands for protection of water resources, wildlife habitat and public open space and purposes directly incidental thereto, The polls will be open at the voting places on the date of referendum election at 7:00 a,m. to 7:00 p.m. on the same day, all as provided in Resolution No, _ adopted by the Board of County Commissioners of Collier, Florida on , which is a matter of public record, All qualified electors residing within the County of Collier shall be entitled, qualified and permitted to vote at such election. The County of Collier, Florida James N. Coletta, Chairman Board of County Commissioners SECTION VIII. Oversight Committee, In order to implement a program to select and prioritize acquisitions and finance negotiations, acquisition, protection, restoration, access and management costs, the Board of County Commissioners shall create a citizens oversight committee to conduct an ongoing review '........' of all acquisitions under consideration and to make recommendations to the Board. The citizens oversight committee shall consist afnine members who shall be selected to provide ecological, 4 12 A,.; --.- real estate and land management expertise, as well as represent environmental, agricultural, and business interests, The members of this committee should include representatives from different areas of Collier COWlty. SECTION IX. Policies and Procedures. The oversight committee shall recommend a willing participant land acquisition program with policies, procedures, standards and criteria for the purchase and management of environmentally sensitive lands for the protection of water resources, wildlife habitat, and public open space in perpetuity. Perpetual management will be achieved through dedication of a portion oftax receipts to a management trust fund that will be designed to provide sufficient funds that may be invested, the earnings from which should be sufficient to provide for the ongoing management for the lands acquired. Each acquisition must be designed to serve a public purpose for the restoration, conservation or preservation of environmentally sensitive public open space, wildlife habitat and water resource protection land, and for providing public use opportunities. The program shall be designed to achieve maximum impact by partnering with other entities through award or acceptance of grants, joint projects and other cooperative efforts, Funds raised through the program shall also be used to apply for matching grants awarded under the Florida Forever Program set forth in Chapter 99-247, Laws of Florida, and any amendments thereto and any other appropriate state, district or federal funding program, to maximize the use of public monies to benefit Collier County, SECTION X. Acquisition Goals, The goals of the program are to acquire, protect and manage environmentally sensitive lands which contain rare, unique or endangered upland and wetland areas for the benefits of public open space, biodiversity, listed species habitat protection, water resources for natural systems and water supply, buffering or connection of existing conservation lands, restoration of critical resources, and appropriate access to low impact, resource based outdoor recreation and educational opportunities. AU program lands will be adequately and appropriately managed to achieve the stated goals of the program. Additionally, every effort will be made to partner with other funding agencies to maximize the program's benefits to the citizens of the County. SECTION XI. Acquisition Priorities The priorities for land acquisition of the program arc reflected in the criteria identified for selection and ranking of specific acquisition projects. A property must exhibit at least two of the initial screening criteria to be considered for acquisition under the program. These are as follows: INITIAL SCREENING CRITERIA: 1. Land with the most rare, unique or endangered habitats found in Collier County, in order of preference: I). Tropical hardwood hammocks, 2). Xeric oak scrub, 3). Coastal strand, 4). Native beach, 5), Xeric pine, 6), Riverine oak, 7), High marsh "-.... / (saline), 8). Tidal freshwater marsh, 9), Other native habitats, 5 12A '"",,_.' 2, Lands offering the best human social values, such as those that include equitable geographic distribution, appropriate public access for passive recreational, educational and compatible uses, and enhancement of the aesthetic setting of Collier County, 3, Land that protects the most water resource values, including aquifer recharge, surface water quality, wetland dependant species habitat, and flood control. 4. Land containing the most biological value, including biodiversity,listed species habitat, connectivity, restoration potential, and ecological quality, 5, Land that enhances and/or protects the environmental value of existing conservation lands through function as a buffer, ecological link, or habitat corridor. 6, Any qualified land that meets at least two of the above criteria, and has matching funds available, and/or which program funds' availability would leverage a significantly higher funding rank in another acquisition program, Without such funding circumstances, program funds shall not be available for projects within other agencies' acquisition boundaries, SECONDARY RANKING CRITERIA: Those proposed acquisition parcels which are qualified under the Initial Screening Criteria shall be evaluated and ranked by the County staff and the citizens oversight committee based on site visit infonnation (which confinns or refutes the screening criteria evaluation), and based on comparative size (larger of similar parcels is preferable), vulnerability to destruction (most threatened of qualified parcels is preferable), overall resource quality (to prefer highest quality), and the estimated feasibility and costs of management (most manageable parcels are preferable), SECTION XII. Public Access The program will acquire and manage environmentally sensitive lands with the primary objectives of maintaining and preserving their natural resource values, and providing appropriate resource based recreational and educational opportunities, by employing management techniques that are most appropriate for each parcel acquired so that our natural heritage may be preserved and appreciated by and for present and future generations. Examples of pennitted uses, subject to compatibility with specific parcels, include: hiking, nature photography, birdwatching, kayaking, canoeing, swimming, hunting and fishing. The program will also make the acquired sites available, with minimal risk: to the environmental integrity of the site, to educate Collier County's school-age population and the general public about the uniqueness and importance of Collier County's subtropical ecosystems and natura) communities. SECTION XIII. Effective Date, This Resolution shall go into effect immediately upon its passage and adoption, " -- 6 12A DONE AND ORDERED IN OPEN MEETING. "'-' I, ~_ ',' k ... ~ ..i .. I, 71'. .. _/ - , At~.t;.~ .~?IIn-'S s tgnltil..., GllJ.....- Approved as to Form and Legal Sufficiency: BOARD OF COUNTY COMMISSIONERS COUNTYOFC~ By ~ 'Jam . 0 , arm (,-11- () z.. cq ine Hubbard Robinson ssistant County Attorney """....-/' 7 ORDINANCE NO. 2004 - 78 "--.../ AN ORDINANCE AUTHORIZING THE ISSUANCE OF LIMITED GENERAL OBLIGATION BONDS (CONSERVATION COLLIER PROGRAM) FROM TIME TO TIME PAYABLE FROM THE LEVY OF AN AD VALOREM TAX LEVIED UPON ALL TAXABLE REAL PROPERTY IN THE COUNTY IN AN AMOUNT NOT TO EXCEED ONE-QU ARTER OF ONE MILL FOR THE PRINCIPAL PURPOSE OF ACQUIRING CERTAIN ENVIRONMENTALLY SENSITIVE LANDS WITHIN THE COUNTY; PROVIDING FOR VARIOUS RIGHTS AND REMEDIES OF THE BONDHOLDERS; PROVIDING THAT THE BONDS AUTHORIZED HEREUNDER WILL BE LIMITED GENERAL OBLIGATIONS OF THE COUNTY; AND PROVIDING AN EFFECTIVE DATE, BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA: SECTION 1. DEFINITIONS. When used in this Ordinance, the follo\\,ing terms shall have the following meanings, unless the conrext clearly otherwise requires: "Ad" shall mean Chapter 125, Florida Statutes. Article Vll, Section 12 of the Florida Constitution, and other applicable provisions of law. "Board" shall mean the Board of County Commissioners of Collier County, Florida, and any successor thereto, "Bond Resolution" shall mean the resolution of the County providing for the security for the Bonds, the now of funus. the rights and remedies of the Bondholders and various other terms and details relating to the Bonds, as the same may be amended or supplemented from time to time, "Bonds" shall mean limited general obligation bonds rebting to "Conservation Collier" (as described in the Referendum Resolution) issued by the County pursuant to this Ordinance, payable from the Limited Ad Valorem Tax, \. " --.- "Cost" when used in connection with a Project. shall. to the extent permitted by the Act, mean (1) the County's cost of physical construction; (2) costs of acquisition by or for the County of such Project or any portion thereof; (3) any costs of land and interests therein and the cost of the County incidental to such acquisition (including. withom limitatil)n. title insurance and related costs and costs associated with the examination, survey and any remediation required with respect to such land); (4) the cost of any indemnity and surety bonds and premiums for insurance during construction; (5) all interest due to be paid on Bonds and other obligations relating to the Project during. the period of construction of the Project and a reasonable period subsequent 10 completion or construction as the COUIll)' m:lY determine: (6) engineering. architectural, legal. financial advisory and other consultant fees and expenses; (7) costs and expenses of the financing incurred for the Project. including rees and expenses or any paying agent, registrar. lllUllicipal bond insurer. credit bank or depository; (8) paymenls, when due (whether at the maturity of principal or the due date of interest or upon redemption) on any interim or '-- 'temporary indebtedness of the County incurred for the Project; (9) costs of machinery, equipment, technology, supplies, spare parts, furniture and any other items required by the County for the commencement of operation of the Project; and (10) any other costs properly attributable to such construction or acquisition or to the issuance of the Bonds which finance the Project, as determined by generally accepted accounting principles and shall include reimbursement to the County for any such items of Cost heretofore paid by the County prior to the issuance of the Bonds or other obligations issued to finance the Project. The Bond Resolution may provide for additional items to be included in the aforesaid Costs. "County" shall mean Collier County, florida, a political subdivision of theState of Florida. "Limited Ad Valorem Tax" shall mean the ad valorem tax levied on all taxable property within the County in an amount not to exceed one-quarter (1/4) of one mill to pay the annual debt service on the Bonds as approved by the qualified electors of the County voting in the November 5,2002 bond referendum election. "Project", shall mean the acquisition of certain environmentally sensitive lands by the County and any additional capital improvements or working capital costs related thereto which may be financed with proceeds of the Bonds under the Act. The description of each Project shall be set forth in the Bond Resolution or supplemental resolution ~Iuthorizing the issuance of Bonds which shall finance the Costs of such Project. "Referendum Resolution" shall mean Resolution No, 2002-265 adopted by the Board on lune 11,2002, The words "herein." "hereunder," "hereby," "hereto," "hereof," and any similar terms shall refer to this Ordinance, Words importing the singular number include the plural number. and vice versa, SECTION 2, follows: FINDINGS. The Board hereby finds and determines as (a) Pursuant [0 the Referendum Resolution, (he County ordered the holding of a bond referendum election to determine if the qualified electors of the County would approve the issuance of not exceeding $75,000,000 principal amollnt of limited general obligation bonds payable from ad valorem tax to be levied in an amount not to exceed one-quarter (1/4) of one mill on all taxable property within the County for the principal purpose of financing the acquisition of certain environmentally sensitive lands within the County in order to protect waler resources, wildlife habitat and public open space suitable for resource based recreation. (b) On November 5, 2002, a bond referendum election was held and the issu:lI1ce of not exceeding $75,000,000 principal amount of limited general obligation bonds p:Jyahle from the Limited Ad Valorem Tax was approved by a majority of the qualified electors of the County voting in said referendum election, (c) It is in the best interests of the citizens and consistent with the goals and purposes of "Conservation Collier" as described in the Referendum Resolution to acquire environmentally sensitive lands from time to time to protect water resources, wildlife habitat and/or public open space suitable for resource based recreation, '- 2 '"'--, (d) It shall be necessary and desirable to issue Bonds from time to time to finance and refinance the Costs of Projects and such Bonds shall be payable from the Limited Ad Valorem Tax as provided herein and in the Bond Resolution, SECTION 3. ISSUANCE OF BONDS. (a) The Board shall have the power and it is hereby authorized to provide pursuant to the Bond Resolution, at one time or from time to time in series, for the issuance of Bonds of the County payable from the Limited Ad Valorem Tax as provided in the Bond Resolution for one or more of the following purposes: (1) paying all or a part of the Cost of one or more Projects, (2) refunding Bonds or refinancing other indebtedness of the County incurred to finance or refinance Projects, (3) funding a debt service reserve account, (4) capitaliz.ing interest on the Bonds, and (5) paying costs of issuance relating to the Bonds, The principal of and interest on each series of Bonds shall be payable from the Limited Ad Valorem Tax, as determined pursuant to the Bond Resolution. The County may secure each series of Bonds with the Limited Ad Valorem Tax in the manner and to the extent provided in the Bond Resolution. Such Limited Ad Valorem Tax shall immediately be subject to the pledge granted in the Bond Resolution without any physical delivery thereof and such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the County. (b) The Bonds of each series shall be dated, shall bear interest at such rate or rates, shall mature at such time or times not exceeding the time periods allowed under the Referendum Resolution, may be made redeemable before maturity, at the option of the County, at such price or prices and under such terms and conditions, all as shall be determined by the Board pursuant to the Bond Resolution, The Board shalJ determine the form of the Bonds, the manner of executing such Bonds, and shaH fix the denomination or denominations of such Bonds and the place or places of payment of the principal and interest, which may be at any bank or trust company within or without the State of Florida, In case any officer whose signature or a facsimile of whose signature shall appear on any Bonds shall cease to be such officer before the delivery of such Bonds, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes the same as if he or she had remained in office until such delivery, The Board may sell such Bonds in such manner and for such price as it may determine to be in the best interests of the County in 3ccord3nce with the terms of the Bond Resolution, In addition to the Limited Ad Valorem Tax, the Bonds may be secured by such credit enhancement as the Board determines to be appropriate pursuant to the Bond Resolution, The Bonds may be issued as capi131 appreciation bonds, current interest bonds, term bonds, serial bonds, variable rate bonds or any combination thereof, all as shall be determined pursuant to the Bond Resolution, (c) Prior to the preparation of definitive Bonds of any series, the Board may, lindeI' like restrictions, isslIe interim receipts, interim certificates or temporary Bonds exchangeable for definitive Bonds when such Bonds h3ve heen executed and are :1V<lilable for delivery, The Board may also provide for the replacement of any Bonds which shall become mutilated, or be destroyed or lost. Bonds may be issued without any other proceedings or the happening of uny other conditions or things than those proceedings, conditions or things which are specifically required by this Ordinance, (d) The proceeds of any series of Bonds shall be used for such purposes, and shall be disbursed in such manner und under such restrictions, if any, as the Board may provide pursuant to the Bond Resolution, \- (e) The Bond Resolution may also contain slIch limitations upon the issllance of additional Bonds as the Board may deem proper. and slIch additional Bonds sh:J1I be iss\K'd \lllder Slll'h restrictiolls ~111l1 lil1lilali\llls ~IS 111;1)' he prcsniheu hy slIch Bond 3 gesolulion, The Bond Resolulion may contain such provisions and lerms relating to the Bonds and Limited Ad Valorem Tax as shall nOI be inconsistent herewith. "'--- SECTION 4. LIMITED GENERAL OBLIGA nONS OF THE COUNTY. The faith, credit and taxing power of the County shall be pledged for the full and prompt payment of the principal of and interest on the Bonds; provided, that such pledge is a limited obligation of the County which shall not exceed one quarter (114) of one miJl of ad valorem taxes. A direct annual tax not in excess of one quarter (1/4) of one miJl shall be levied upon all taxable property of the County to make such payments. No Holder or Holders of the Bonds shall ever have the right to compel the full faith, credit and taxing power of the County in amount greater than the Limited Ad Valorem Tax, Provision shall be included and made in the annual budget and tax levy for the levy of the Limited Ad Valorem Tax hereinbefore provided, Whenever the County shall, in any fiscal year, have irrevocably deposited in th.e sinking fund established under the Bond Resolution any moneys derived from sources other than the aforementioned Limited Ad Valorem Tax, said Limited Ad Valorem Tax may be correspondingly diminished; but any such diminution must leave available an amount of such Limited Ad Valorem Tax, after allowance for anticipated delinquencies in collection, fully sufficient, with such moneys so deposited from other sources, to aSSllre the prompt payment of principal, interest and other related charges falling due prior to the time that the proceeds of the next annual Limited Ad Valorem Tax levy will be available, Such Limited Ad Valorem Tax shall be levied and collected at the same time, and in the same manner, as other ad valorem taxes of the County are assessed, levled and collected, SECTION 5. TRUST FUNDS. All moneys received pursuant to the authority of this Ordinance, whether as proceeds from the sale of Bonds or the Limited Ad Valorem Tax, shall be deemed to be trust funds, to be held and applied solely as provided in this Ordinance and in the Bond Resolution. Such Limited Ad Valorem Tax may be invested by the County, or its designee, in such manner as provided in the Bond Resolution. SECTION 6. REMEDIES OF BONDHOLDERS. Any holder of Bonds, except to the extent the rights herein given may be restricted by the Bond Resolution, may. either at law or in equity, by suit, action, mandamus or other proceeding, protect and enfon:e any and all rights under the laws of the State of Florida or granted hereunder or under such resolution, and may enforce and compel the performance of all duties required by this part, or by such resolution, to be performed by the County or the Board or by any officer thereof. SECTION 7. ALTERNATIVE METHOD. This Ordinance shull be deemed to provide an additional ami alternative method for the doing of the things authorized hereby and shall he regarded as suppJemenwl and additional to powers conferred by other laws, and shall not be regarded as in derogation of any powers now existing or which may hereafter come into existence, This Ordinance, being necessary for the welfare of the inhabitants of the County, shaIl be liberally construed to effect the purposes hereof. SECTION 8. SEVERABILITY. If any section, paragraph, clause or provision of this Ordinance shall be held to be invalid for any reason, such invalidity shall not effect the validity or enforcement of any of the remaining provisions hereof. This Ordinance shall take precedence over and sllpersede any other ordinance or resolution of the County to the extent of any conflict or inconsistency therewith. '- SECTION 9. EFFECTIVE DATE. A certified copy of this Ordinance shall be filed in the Department of State by the Clerk within len days after enactment by the Board and shall take effect upon filing, 4 PASSED AND DULY ADOPTED by the Board of County Commissioners of Collier County, Florida, this 14th day of December, 2004. , "- ',' . ., ',' ,. .... ". '.... . I, , , , A TIEST: , Dwight E: Br.o~:k:,,'1:'LERK ,',,~l'fJlD,1fl'qJ "". /";~~~' ';'::~:i::,~~:~'" '\ i~", BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY. FLORIDA BY {/t. ~ Donn iar.~ctrAI A -- Approved as to form and legal sufficiency: ,/?M tJ fl4 Michael W, Pettit Chief Assistant County Attorney .:>tate of FLORIPt\ County of COLUIR I HEREBY CERTlFYTHAT......1Ll f '\ correct copy 01 a document.... II ' Board MInutes and RlCOrdsofOallllr~ WITNESS my hpnd and offICfail.... _ ( ...JtJ!!:1 day of ~h1.JJ(Jri f.4I:Jlf ' DWIGHT~. BROCK, ClERK OF. . BI" +M)a.~ .... ,.~ '- 5 '-- .,,--- COLLIEH COUNTY, FLORIDA LIMITED GENERAL OBLIGATION BOND RESOLVTION (Conservation Collier Program) ADOPTED DECEMBER 14.2004 o EFINITI ONS........ ..... .......... ......... ........... ............... ................................ 2 AUTHORITY FOR RESOLUTION ...................................................... 9 RESOLUTION TO CONSTITUTE CONTRACT ..............................9 FIN DIN G S ............. ......... .......... ........... ................ ....................... .............. 9 AUTHORlZA TION OF THE 2005A PROJECT AND THE REFINANCING OF THE PRIOR NOTE..................................... II ARTICLE II AUTHORIZA nON, TERMS, SALE, EXECUTION AND REGISTRA TION OF BONDS SECTION 2.0]. AUTHORIZA nON OF BONDS ......................................................... 12 SECTION 2.02. AUTHORIZA nON AND rESCRlPTION OF THE SERlES 2005A BONDS; A WARD OF THE SERlES 2005A BONDS; NO REDEMPTION FOR SERlES 2005A BON 0 S .............................. ....... ............... .......................................... 12 APPLICATION OF BOND PROCEEDS ........................................... 14 EXECUTION OF BONDS ................................................................... 14 AUTHENTICATION ............................................................................ 15 TEMPO RAR Y BONDS.. ..... .................................... ....... ....... ....... ........ 1 5 BONDS MUTILATED, DESTROYED, STOLEN OR LOST........ 15 INTERCHANGEABILITY, NEGOTIABILITY AND TRANS FER........ .............. ........... ............ ..................... ........ ............ 16 SECTION 2.09. FULL BOOK ENTRY FOR SERIES 2005A BONDS .....................17 SECTION 2.] O. FORM OF BONDS................................................................................ 19 ARTICLE III REDEMPTION OF BONDS PRI VI LEGE OF REDEMPTION ................................... ...................... 26 SELECTION OF BONDS TO BE REDEEMED .............................. 26 NOTI CE OF RED EMPTION ..................... ....... ................ ................... 26 REDEMPTION OF PORTIONS OF BONDS ...................................28 PA YMENT OF REDEEMED BONDS............................................... 28 ARTICLE IV SECURITY, SPECIAL FUNDS AND APPLICATION THEREOF SECTION --LO 1. LIMITED GENERAL OBLIGATIONS OF THE ISSUER ............. 29 SEen ON 4.02. PROJECT FUN D ........................ "'_ ......... ........... ................................... 2 9 "--' SECTION 1 0 I. SECTION 1.02. SECTION 1.03. SECTION] .04. SECTION 1.05 SECTION 2.03. SECTION 2.04. SECTION 2.05. SECTION ]()6 SECTION 2.07 SECTION 2.0R. SECTION 3.0 I. SECTION 3.02. SECTION 3.03. SECTION 3.04. SECTION 3.05. TABLE OF CONTENTS ARTICLE I GENERAL CREATION OF SINKING FUND: .'\PPUC.\TIO>'; OF LIMITED AD V ALORE?'v1 TAX... ....... . .....d... ..... REBA TE FUND........................... .................. . ..........d. . ...... 31 INVESTMENTS................................................ ...... ........,........ . ......32 SEPARA YE ACCOUNTS ................................ ................... ......... 32 ARTICLE V ADDITIONAL BONDS AND COVENANTS OF ISSUER SECTION 5.01 ISSUANCE OF ADDITIONAL BONDS..................... .33 SECTION 5.02. BOOKS AND RECORDS ............................... ... ............................34 SECTION 5.03. NO IMP AIRMENT......................................... ............ ................. .....34 SECTION 5.04. FEDERAL INCOME TAX COVENANTS...................... ........34 ARTICLE VI DEF AUL TS AND REMEDIES EVENTS OF OEF AUL T....... .............................. ................. .......36 REI\.1EDIES. ..... .......... .......... ............ ................................. ........... .........36 DIRECTIONS TO RECEIVER AS TO REMEDIAL P ROC EED IN G S ........................................... .................................... 3 7 RErvlEDIES CUMULATIVE .................... ...................................... 3 7 WAIVER OF DEFAUL T..................................... ... .........................37 APPLICATION OF MONEYS AFTER DEfAULT.........................37 CONTROL BY CREDIT FACILITY PROVIDER........................... 3 8 ARTICLE VII SUPPLEMENTAL RESOLUTIONS SECTION 7.01. SUPPLEMENTAL RESOLUTION WITHOUT BONDHOLDERS' CONSENT ....................................................40 SECTION 7.02. SliPPLEMENTAL RESOLUTION WITH BONDHOLDERS' AND CREDIT FACILITY PROVIDER'S CONSENT............... 41 AMENDMENT WITH CONSENT OF CREDIT FACILITY' PROVI DER ONL Y.... ... .... .... ........ ..... ............ . ............ .............. ...... 42 SECTION -4 OJ "---- SECTION 4.04. SECTION 4.05. SECTION 4.06. SECTION 601. SECTION 6.02. SECTION 6.03 SECTION 6.04. SECTION 6.05. SECTION 6.06. SECTION 6.07 SECTION 7.03 .._ JO ARTICLE VIII PROVISIONS RELATING TO THE BOND INSURA.NCE pouey lx-NO INSCRER FOR THE SERIES 2005A BONDS SECTION S.Ol SECTION 8.02. SECTION 90\ i\'1UNICIPAL BOND INSURANCE ............................... .......43 PROVISIONS RELATING TO BO!'\D INSUR.r\.\iCE POll CY.... .............. ................................... .... ................................43 ARTICLE IX DEFEASANCE DEFEASANCE ...................................... ................................. -~9 .. il ARTICLE X PROVfSIONS RELATING TO SERlES 2005A BONDS '-. SECTION 100 I. OFFICIAL NOnCE OF SALE............................................................ 5 J SECTION 10.02. PRELlIvHNAR Y OFFICfAL STATEMENT; OFFICIAL S T A TEMENT .... ............... ......... ...... .......... ......... .............................. 5 I SECTION 10.03. APPOINTMENT OF PA YING AGENT AND REGISTRAR......... 52 SECTION 10.04. SECONDARY MARKET DISCLOSURE .........................................52 ARTICLE XI MISCELLANEOUS SECTION 11.0 1. CAPITAL APPRECIATION BONDS ................................................ 53 SECTION 11.02. SALE OF BONDS .................................................................................53 SECTION 11.03. GENERAL AUTHORlTY .................................................................... 53 SECTION] 1.04. SEVERABILITY OF INVALID PROVISIONS ...............................53 SECTION 11.05. REPEAL OF INCONSISTENT RESOLUTIONS ............................. 54 SECTION 11.06. EFFECTIVE DATE ............................................................................... 54 EXHIBIT A - EXHIBIT B - EXHIBIT C - EXHIBIT 0 - EXI-tIB IT E - GENERAL DESCRIPTION OF THE 2005A PROJECT FORM OF OFFICIAL NOTICE OF SALE FORM OF PRELIMINARY OFFICIAL STATEMENT FORM OF CONTINUING DISCLOSURE CERTIFICATE GENERAL OESCRlPTION OF THE PRlOR PROJECT III RESOLVTION NO. 383 '-----' A RESOLl:nON OF THE BOARD OF COlT?'\TY COf\.I\lISSION ERS OF COLLIER COUNTY, FLORIDA AUTHORIZING THE ISSU/-\.NCE OF NOT EXCEEDING $75.000,000 IN AGGREGATE PRINCIP.-\L A../\'10UNT OF COLLIER COUNTY~ FLORlOA Lll'vIITED GENER..'-\L OBUGA TION BONDS (CONSERVATION COLLIER PROGRAMl. SERIES :2005.A., TO FINANCE THE ACQUISITION OF CERTAf:-: ENVIRONrv'fENT ALL Y SENSITIVE LANDS WITHIN THE COUNTY: PROVIDING FOR THE ISSUANCE OF ADDITIONAL LIMITED GENERAL OBLIGATION BONDS FROM TIME TO TIME FOR THE PRINCIPAL PURPOSE OF FINANCING THE ACQUISITION OF OTHER ENVIRONMENT ALL Y SENSITIVE LANDS WITHIN THE COUNTY; PROVIDING FOR THE PA YMENT OF SAID BONDS FROM AD VALOREM TAXA TrON LEVIED IN AN AIvl0UNT WHICH SHALL NOT EXCEED ONE-QUARTER OF ONE MILL ON ALL TAXABLE PROPERTY IN THE COUNTY; f'v1AKING CERTAIN COVENANTS AND AGREEMENTS IN CONNECTION THEREWITH~ PROVIDING FOR THE RIGHTS OF THE HOLDERS OF SUCH BONDS: .c\UTHORlZING THE A WARDING OF SAID SERlES 2005:'\ BONDS PlRSUANT TO A PUBLIC BID: DELEGA TI0JG CERTAIN AUTHORITY TO THE CHAIR FOR THE A WARD OF THE SERIES 2005/\ BONDS AND THE APPROVAL OF THE TERt\1S AND DETAILS OF SAID SERIES 2005A BONDS; AUTHORIZING THE PUBUC..\TrON OF A NOTICE OF SALE FOR THE SERIES 2005A BONDS OR A SUMMARY THEREOF; APPOINTING THE PAYING AGENT AND REGISTRAR FOR SAID SERIES 2005A BONDS: AUTHORIZING THE DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT AND THE EXECUTION AND DELIVERY OF AN OITICIAL ST A TDvIENT WITH RESPECT TO THE SERIES 2005A BO\iDS: AUTHORIZING THE EXECUTION AND DELIVERY OF A CO\!TlNUING DISCLOSURE CERTIFICATE \VITH RESPECT TO THE SERIES 2005A BONDS: AUTHORlZING iVIUNICIPAL BOND INSURANCE FOR THE SEREIS :2005A BONDS; AND PROVIDING AN EfFECTIVE DATE. BE IT RESOL VED BY THE BOARD OF COUNTY COM~IISSI0NERS OF COLLIER COV;\TY, FLORIDA: '" --- ARTICLE I GENERAL SECTION 1.01. DEFINITIONS. When used in this Resolution., the following terms shall have the following meanings, unless the context clearly otherwise requires: "Accreted Value" shall mean, as of any date of computation with respect to any Capital Appreciation Bond, an amount equal to he principal amount of such Capital Appreciation Bond (the principal amount at its initial offering) plus the interest accrued on such Capital Appreciation Bond from the date of delivery to the original purchasers thereof to the Interest Date next preceding the date of computation, or the date of computation if an Interest Date, such interest to accrue at a rate not exceeding the legal rate, compounded semiannually, plus, with respect to matters related to the payment upon redemption or acceleration of the Capital Appreciation Bonds, if such date of computation shall not be an Interest Date, a portion of the difference between the Accreted Valuc :1S of the immediately preceding Interest Date and the Accreted Value as of the immediately succeeding Interest Date, calculated based on the assumption that Accreted Value accrues during any semi-annual period in equal daily amounts on the baSIS of a 360-cby year. "Act" shull mean Chapter 125, Florida Statutes, Article VII, Section 12 of the Florida Constitution, the Ordinance, and other applicable provisions of law. "Additional Bonds" shall mean the obligations issued at any time under the pro\ isions 0 r Section 5.0] hereof on a parity with the Series 2005A Bonds. "Amortization Installment" shall mean an amount designated as such by, or pro\icled for plllSllant to, this Resolution or Supplemental Resolution of the Issuer and estabJished with respect to the Term Bonds. "Annual Debt Service" shall mean, at any time, the aggregate amount in the then cllrrent Fiscal Ye8r of (1) interest required to be paid on the Outstanding Bonds during stich Fiscal Year. except to the extent that such interest is to be paid from deposits in the Sinking Fund or Project Fund from Bond proceeds for such purpose, (2) principal of Outstanding Serial Bonds maturing in such Fiscal Year, and (3) the Amortization InSl,:dlments with respect to slIch Fiscal Year. For purposes of this definition, all amounts payable on a Capital Appreciation Bond shall be considered a principal payment due in the :. ear or its maturity or datt: of redemption by Amortization Installment. ~ --..-- 2 -- "Authorized Investments" shall mean any investments or obligations !n \\.Iw,:h the Issuer may invest its funds under applicable law and the internal investment policy of the Issuer, as such policy may be amended and supplemented 1'1'0111 ume to time. "Authorized Issuer Officer" shall mean the Chair, the County Manager. the Clerk Dr their designee(s), and when used in reference to any act or document also means any other person authorized by ordinance or resolution of the Issuer to perform such act or sign such document. "no~lrd" shall mean the Board of County Commissioners of Collier County. Florida. "Bond Counsel" shall mean Nabors, Giblin & Nickerson. P.i\. or any other attornev at law or firm of attorne'vs. of nationallv reco~nizecl standin!! in matters , .. ' ,,-- ..... pertaining to the federal tax exemption of interest on obligmiolls Issued hy states and political subdivisions. and duly admitted to practice law before the highest coun of .:10:- state of the United States of America. "Bond Insurance Policy" shall mean a municipal bonJ insurance policy or fin;:ll1cial guaranty insurance poticy issued by an Insurer insuring the payment. when due. of th~ principal of Jnd interest on a Series of Bonds as provided therein. With respect to [he Senes 2005/\. Bonds, "Bond Insurance Policy" shall mean the financial guar~nty insur,:1I1cc policy issued by Ambac Assurance Corporation insuring the payment of the principal of and interest on the Series 2005A Bonds as provided th~rein. "Bondholder" or "Holder" or "holder of Bonds" or .::my similar term. when used \\lith reference to a Bond or Bonds. shall mean any Person who shall be the registered owner of any Outstanding Bond or Bonds as provided in the registration books of the IssLler. "Bonds" shallmeal1 the Series 2005:-'\ Bonds. together \\irh :In)' Additional Bonds issLled pursUJnllO this Resolution. "Capital Appreciation nonds" shall mean those Bonds. if any. so designated or pnwided for by Supplemental Resolution of the Issuer, which may be either Serial Bonds or Term Bonds and which shall bear interest payable at maturity ur redemption. "Chair" shall mean the Chair of the Board of County CL)mmissioners of the Issue-I' and such other person as may be duly authorized to Jct on his or her behalf. "Continuing Disclosure Certificate" shall mean the Cuntinuing. DisclosllJC Ceniticate to be executed by the Issuer on or prior to the cbte of issuance of the Series 2005.'\ Bonds, the substantial form of which is attached herelo as E:..J1Ibit D. .. - ~ .) ---- "Countv Manaocr" shall mean the County Manager of the Tssuer and such other . '" person as may be duly authorized 10 act on his or her behalf. "Cieri,," shall mean the Clerk of the Circuit Court of Collier County, Florida and Ex- Officio Clerk to the Board, and such other person as may be duly authorized to act on his or her behalf. "Code" shall mean the Tnternal Revenue Code of 1986, as amended, and the regulations and rules promulgated thereunder. "Cost" when used in connection with a Project and permitted by the Act, shall mean (I) the Issuer's cost of physical construction; (2) costs of acquisition by or for the Issuer of such Project or any portion thereof; (3) any costs of land and interests therein and the costs of the Issuer incidental to such acquisition (including, without limitation, title insurance <.lnd related costs and costs associated with the examination, survey and any remediation required with respect to such land); (4) the cost of any indemnity and surety bonds and premiums for insurance during construction; (5) all interest due to be paid on the Bonds and other obligations relating to the Project during the period of construction of the Project and a reasonable period subsequent to completion of construction as the Issuer shall determine; (6) engineering, architectural, legal, financial advisory and other consultant fees and expenses; (7) costs and expenses of the financing incurred for the Project, including fees and expenses of any Paying Agent, Registrar, Credit Facility Provider or depository; (8) payments, when due (whether at the maturity of principal or the due date of interest or upon redemption) on any interim or temporary indebtedness of the Issuer incurred for the Project; (9) costs of machinery, equipment, technology, supplies, spare parts, furniture and any other items required by the Issuer for the' commencement of operation of the Project; and (10) any other costs properly attributable to such construction or acquisition or to the issuance of the Bonds which tinance the Project. as determined by generally accepted accounting principles, and shall include reimbursement to the Issuer for any such items of Cost paid by the Issuer prior to the Issuance of the Bonds or other obligations issued to finance the Project. "Credit Facility" shall mean as to any particular Series of Bonds, a Bond Insurance Policy, a letter of credit a line of credit or another credit or liquidity enhancement facility, as approved herein or in the Supplemental Resolution providing for the issLlance of sLlch Series of Bonds "Credit Facility Provider" shall mean an Insurer, bank or other financial instItution issuing n Credit Facility for a particular Series of Bonds. "- 4 -- "Fedcr:1! Securities" shall mean and include nn) of the: foilo\\ing secunriL's. If and ro the extent the same are at the time legal for investmelll of funds of the Issue:- under the la\vs of the state of Florida: (J) any bonds or other obligations which as to principal and interest constiture direct obligations of. or are unconditionally guaranteed by, the United States of Americ3. includi ng obligations of any federal agency or corporation \\;/1ich has been or may hereafter be created pursuant to an act of Congress as an agency or Instrumentality of the United States of America to the extent unconditionallv "uaranteed bv the United States of .; - -' America or any other evidences of an ownership interest in obligations or in specified portions thereof (which may consist of specified portions of the interest thereon) of the character described in this clause (1); and (2) any bonds or other obligations of any state of the United States of America or of any agency, instrumentality or local governmental unit of any such state (3) which are noL c~lllabJe at the option of the obligor prior to maturity or as to which irrevocable instructions have been given to the trustee of such bonds or other obligations by the obligor to give due notice of redemption and to call such bonds for redemption on the date or dates specified in such instructions. (b) which are fully secured as to principal :J.nd interest nnd redemption premium, if any. by a fund consisting only of cash or bonds or other obligations of the character described in clause (1) hereof which fund may be applied only 10 the payment of such principal of and interest [ll1d redemption premium. if any. on such bonds or other obligations on the maturity date or dates thereof or the specified redemption date or dates pursuant to sLlch irrevocable instructions. as appropriate. and (c) as to which the principal of and interest on the bonds and obligations of the character descnbed in clause (1) hereof \lv'hich have been deposited in such fund along with any cash on deposit in such fund is sufficient to pay principal of and interest and redemption premium, if any. on the bonds or other obligations described in this d:.lllSe (2) on the maturity date or dates thereof or on the redemption date or dates specified in the ilTc\'ocable instructions referred 10 in subclause (a) of this clause (2), as appropriate: provided. however, such bonds or obligations must be approved by the [ns\.lrer that then insures the Bonds proposed to be defeased but only if such Insurer is not in default with respect to its payment obligations under the applicable Bond Insurance Poticy. "Fin.lncc Commission" sh311 mean the Florida Locol Government Finance Commission. the currel1l holder of the Prior Note. "Financial Advisor" shallmcan Public Financl::\1 Management. Inc. or such other tinanclal J,dvisory tirrn of nationally recognized standing in matk'rs pertaining to debt obligmions Issued by states and political subdivisions. \. ) "......... "Fiscal Yell 1''' shall mean the period commencing on October I of each year and continuing throud1 the next succeeding September 30, or such other period as may be ~ - prescribed by law. "Insure,-" shal1 mean Ambac Assurance Corporation, a Wisconsin-domiciled stock insurance company, with respect to the Series 2005A Bonds and, with respect to any other Series of Bonds, the Credit Facility Provider, if any, issuing a Bond Insurance Policy with respect to such Series of Bonds. "Interest Date" or "interest payment date" shaIJ be such date or dates for the payment of interest on the Bonds as provided pursuant to Sections 2.01 or 2.02 hereof. "Issuer" or "County" shall mean Collier County, Florida, a political subdivision of the State of Florida. "Limited Ad Valorem Tax" the ad valorem tax levied on all taxable property within the County in an amount not to exceed one-quarter (1/4) of one mill to pay the Annual Debt Service on the Bonds as approved by the qualified ejectors of the Issuer voting in the November 5, 2002 bond referendum election. "Maximum Annual Debt Service" shall mean the largest aggregate amount of the Annual Debt Service becoming due in any Fiscal Year in which Bonds are Outstanding, excluding all Fiscal Years which shall have ended prior to the Fiscal Year in which the Maximum Annual Debt Service shall at any time be computed. "J\:[aximum Interest Rate" shall mean, with respect to any particular Variable Rate Bonds, a numerical rate of interest, which shall be set forth or provided for in the Supplemental Resolution of the Issuer delineating the details of such Bonds, that shall be the 111a\:iIllUIll rate of interest such Bonds may at any particular time bear in the future in accord:mcc with the terms of such Supplemental Resolution. "Official Notice of Sale" shaJl mean the Official Notice of Sale as described in Section 10.01 hereof. the form of which is attached hereto as Exhibit B. "Official Statement" shall mean the Official Statement to be used in cormection with the issuance of the Series 2005A Bonds that shall be substantially in the form of the Preliminary Official Statement and which shalJ contain the financial terms and details of the Series 2005A Bonds. "Ordinance" shall mean the ordinance enacted by the Board on the date hereof authorizing the issu;.ll1ce of Bonds from time to time, as the same may be amended or supplemented frOll1lime to time. "......."\.. 6 ......~ "Outstnnding" when used \.vith reference to the Bonds and as of any partleLlla\' date, shall describe all of the Bonds theretofore and thereupon being authenticated and delivered except. (1) any Bond in lieu of which another Bond or Bonds have been issued to replace lost. mutilated or destroyed Bonds, (2) any Bond surrendered by the Holder thereof in exchange for another Bond or Bonds under Sections '}..07 and ~.08 hereof. (3) Bonds deemed to have been paid pursuant to Section 9.01 hereof. and (4) Bonds cancelled after purchase in the open market or because of payment at maturity or upon redemption. "Paying Agent" shall mean for each Series of Bonds, the paying agent appointed by the Issuer for such Series of Bonds and its successors and assigns. if any. With respect to the Series 2005A Bonds. "Paying Agent" shall mean U.S. Bank Nationnl AssociatIon. Fort Lauderdale. Florida. "Person" shall mean an individual, a corporation. a partnership. an association. a joint stock company, a trust, any unincorporated organization or governmental entity. "Pnliminary Official Statement" shall mean the Preliminary Official Statement to be used in connection with the marketing and sale of the Series 200SA Bonds, the form of which is attached hereto as Exhibit C. "p,'iar Note" shall mean the Collier County, Florida Revenue Note, Draw No. A- 30- J. dated as of August 15, 2004, issued to the Finance Commission in the aggregate principal amount of 521,200,000, all of \.V'hieh is currently outstanding. "Prior Project" shuU mean the 3cquisition of the environmentally sensitive lands generally described in Exhibit E attached hereto and more specifically described in the pJnns <1nd speeificnions on file with the Issuer. which acquisition was financed \vith proceeds of the Prior Note. "Project" shall mean the 2005.'\ Project and the acquisition. construction and/or equipping of such udditional capital improvements, properties and facilities and other activities or items chat are subsequently approved by the Issuer and which may be lawfully financed with Bonds pursuant to the Act. "Project Fund" shnll menn Collier COllnt\', FlOrIda Limited General Obligation . ~ Bonds (Consef\Jtion Collier Progr8m) Project FlUld established pursu:lnt to Section 4.01 hereof. "Rebate Fund" shall mean Collier County, Florida limited General Obl!gJtJOn Bonds ~Conser\'atiol1 Collier Program) Rebate Fund establish~d pursu~lI1t to Section -,U)..+ hereof. ... --~ 7 '""'I.~ "Redemption Price" shall mean, with respect to any Bond or portion thereof, the princIpal amount or portion thereof, pIlls the applicable premium, if any, payable upon redemption thereof pursuant to such Bond, this Resolution or a Supplemental Resolution. "Referendum ResoJution" shall mean Resolution No. 2002-265, adopted by the Board on June 11,2002. "Resolution" shall mean this Limited General Obligation Bond Resolution (Conservation Collier Program), as the same may from time to time be amended, modified or supplemented by Supplemental Resolution. "Registrar" shall mean for each Series of Bonds, any registrar appointed by the Issuer for such Series of Bonds and its successors and assigns, if any. With respect to the Series 2005A Bonds, "Registrar" shall mean shall mean U.S. Bank National Association, Fort Lauderdale, Florida. "Serial Bonds II shall mean all of the Bonds other than Term Bonds. "Series" shall mean all the Bonds delivered on original issuance in a simultaneous transaction and identified pursuant to Sections 2.0 I and 2.02 hereof or a Supplemental Resolution authorizjng the issuance by the Issuer as a separate Series, regardless of variations in maturity, interest rate, amortization installments or other provisions. "Series 2005A Bonds" shall mean Collier County, Florida Limited General Obligation Bonds (Conservation Collier Program), Series 2005A, authorized and issued pursuant to Section 2.02 of this Resolution. "Sinking Fun d" shall mean Collier County, Florida Limited General Obligation Bonds (Conservation Collier Program) Sinking Fund established pursuant to Section 4.03 hereo f. "State" shall mean the State of Florida. "Supplemental Resolution" shall mean any resolution of the Issuer amending or supplementing this Resolution enacted and becoming effective in accordance with the terms of Article VII hereof. "T~lxablc Bonus" shall mean any Bonds which state, in the body thereof, that the interest income thereon is includable in the gross income of the Holder thereof for federal income taxation purposes or that such interest is subject to federal income taxation. ......;;..... 8 "'-- "Term Bonds" shall mean Bonds which shall be desIgnated c'\S or authorized to he Term Bonds by this Resolution or Supplemental Resolution of rhi;' issuer and which urc subject to mandatory redemption by Amortization Installment. "200SA Project" shall mean the acquisition of the cn\lfonmentaily sensiti\'e lands generally described in Exhibit A attached hereto and more :::pecifically described in the plans and specifications on file with the Issuer. "Variable Rate Bonds" shall mean Bonds issued with a variable, adjustc:lble. convertible or other similar rate \vhich is not fixed in percentage for the entire term thereof at the date of issue. The terms "herein," "hereunder," "hereby," "hereto," "hereof" and any similar terms, shall refer to this Resolution: the term "heretofore" shall mean before the date of adoption of this Resolution; and the term "hereafter" shall mean Jhe:- the date of adoption of this Resolution. Words importing the masculine gender include every other gender. Words importing the singular number include the plural number. and vice versa. SECTrON 1.02. AUTHORITY FOR RESOLUTION. This Resolurion IS adopted pursuant to the provisions of the Act SECTION 1.03. RESOLUTION TO CONSTITliTE CONTRACT. In consideration of the purchase and accept~mce of any or all of rhe Bonds by those who shall hold the same ii'om time to time, tbe pro\'isions of this Rt:solution shall be a part of the contract of the Issuer with the Holders of the Bonds and the Credit Facility Providers Jnd shJl1 be deemed to be and shall constitute a contract between the Issuer and the Holders from time ro time of the Bonds .:lI1d the Credit Facility Providers. The pledge made in this Resolution and the provisions. -covenants Jnd agreements herein set forth to be performed by or on behalf of the Issuer shall be for the equJI benefit protection and security of the Holders of any and all of said Bonds and for the benefit. protection and security of the Credir Facility Providers. All of the Bonds. regardless of the time or times of their issuance or maturity. shall be of equal rank withour preference, priority or distinction of any of the Bonds over any other rhereof except as c:\pressly provided in or pursuanr to this Resolution. SECTION 1.04. declared: FINDrNGS. It IS hereby asccrtZlined. determined and (A) Pursuant to the Referendum Resolution. the ISSUer urdered the holding of J bond referendum election to determine if the qUZllifiecl electors .Jf the Issuer \voldd , -.' 9 --~ approve the issuance of not exceeding $75,000,000 principal amount of limited general obligation bonds payable from ad valorem tax to be levied in an amount not to exceed one-quarter (1/4) of one mill on all taxable property within the Issuer for the principal purpose of financing the acquisition of certain environmentally sensitive lands within the Issuer in order to protect water resources, wildlife habitat and public open space suitable for resource based recreation. (B) On November 5, 2002, a bond referendum election was held and the issuance of not exceeding $75,000,000 principal amount of limited general obligation bonds payable from the Limited Ad Valorem Tax was approved by a majority of the qualified electors of the Issuer voting in said referendum election. (C) On August 25, 2004, the Issuer issued the Prior Note in the principal amount of $21,200,000 in order to finance, on an interim basis, Costs of the Prior Project. (0) It is in the best interests of the citizens and consistent with the goals and purposes of "Conservation Collier" as described in the Referendum Resolution to have acquired the Prior Project, as generally described in Exhibit E attached hereto, and to acquire the 2005A Project, as generally described in Exhibit A attached hereto, and as each is more particularly described in the plans and specifications related thereto which are on file with the Issuer. (E) Acquiring the Prior Project and the 2005A Project shall protect water wildlife habitat and/or public open space suitable for resource based reso urces. recreation. (F) The Prior Note bears interest at a variable rate and was issued to finance Costs of the Prior Project on an interim basis; in order to provide permanent financing with respect to the Prior Project and to eliminate interest rate risk inherent with variable rate debt obligations slIch as the Prior Note, it is now appropriate and in the Issuer's best interest to refinance the Prior Note through the issuance of a longer term, fixed interest rate obligation. (G) The most efficient and cost effective method of financing Costs of the 2005A Project and refinancing the Prior Note is through the issuance of not exceeding $75.000,000 aggregate principal amount of Collier County, Florida Limited General Obligation Bonds (Conservation Collier Program), Series 2005A (H) In accordance with Section 218.385, Florida Statutes, and pursuant to this Resolution. the 2005A Bonds shall be advertised for competitive bids pursuant to the Ofticial Notice of Sale, the form of which is attached hereto as Exhibit B, or a summary thereof. " ~- 10 ............-. (I) Pursuant to the Official Notice of Sale, competitive bIds for the purchase of the Senes 2005A Bonds received in accordance with the Offici.1] Notice of Sale on or prior [0 10:00 a.I11., local time, on January 18, 2004 or such other date or time as is determined by the Chair in accordance with the terms and provisions hereof and of the Official Notice of Sale. shall be publicly opened and announced. (1) Due to the present volatility and uncertainty of the market for tax-exempt obligations such as the Series 2005A Bonds. it is desirable for the Issuer to be able to advertise and award the Series 2005A Bonds at the most advantageous time and date instead of restricting the sale and award to the date of a partlcular meeting of the Board: and, accordingly, the Issuer hereby determines to relegate the advertising and av-.arding of the Series 2005A Bonds to the Chair within the parameters described herein. (K) It is necessary and appropriate that the Issuer determine certain parameters for the terms and details of the Series 2005A Bonds and to delegate certain authority to the Chair for the award of the Series 2005A Bonds and the Jpproval of the terms of the Series 2005A Bonds in accordance with the provisions hereof ':ll1d of the Official Notice of Sale. (l) fn the event Bond Counsel shall determine that the Series 2005A Bonds have not been mvarded competitively in accordance with the provisions of Section 118.385, Florida Statutes, the Issuer shall adopt such resolutions and make such findings as shall be necessary to authorize and ratify a negotiated sale of the Series 2005A Bonds in accordance with said Section 2] 8.385. (M) The Costs associated with the retinancing of the Prior Note and the acquisition of the 2005A Project shall be deemed to include legal expenses. underwriting discounts. the premium for the Bond Insurance Policy. financial advisory fees, and such other expenses as may be necessary or inCidental for the issuance of the Sereis 1005 A Bonds herein authorized. (N) It is necessnry nt this time that provision be made for the issuance of Bonds. including the Series 20051\ Bonds. and for the lev)' and pledging of the Limited Ad Valorem Tax to pay the same. SECTION 1.0S. AUTHORIZATION OF THE 200SA PROJECT AND THE HEFINANCING OF THE PRIOn NOTE. The Issuer hereby authorizes the '2005A Project and the refinancing of the Prior Note. \ ......- II '-- ARTICLE II AUTHORlZATION, TERMS, SALE, EXECUTION AND REGISTRATION OF BONDS SECTION 2.01. AUTHORIZATION OF BONDS. This Resolution creates an issue of Bonds of the Issuer to be designated as 'Collier County, Florida Limited General Obligation Bonds (Conservation Collier Program) II which may be issued in one or more Series as hereinafter provided. The aggregate principal amount of Bonds of all Series which may be executed and delivered under this Resolution is not limited except as is or may hereafter be provided in this Resolution or as limited by the Act. The Bonds may. if and when authorized by the Issuer pursuant to this Resolution., be issued in one or more Series, with such further appropriate particular designations <tdded to or incorporated in such title for the Bonds of any particular Series as the Issuer may determine and as may be necessary to distinguish such Bonds from the Bonds of any other Series. Each Bond shall bear upon its face the designation so determined for the Series to which it belongs. The Bonds shall be issued for such purpose or purposes; shall bear interest at such . rale or rates not exceeding the maximum rate permitted by law; and shall be payable in I a\'vtu I money of the United States of America on such dates; all as determined hereby and by Supplemental Resolution. The Bonds shall be issued in such denominations and such form, whether coupon or registered; shall be dated such dates; shaJJ bear such numbers; shall be payable at such place or places; shall be payable on such Interest Dates and principal payment dates; shall contain such redemption provisions; shall have such Paying Agents and Registrars; shall mature in such years and amounts; and the proceeds shall be used in such manner; all as determined hereby and by Supplemental Resolution of the Issuer in accordance with the provisions of the Act. The Issuer may issue Bonds which may be secured by a Credit Facility all as shall be determined hereby or by Supplemental Resolution of the Issuer. SECTION 2.02. AUTHORIZATION AND DESCRIPTION OF THE SERIES 200SA BONDS; A WARD OF THE SERIES 2005A BONDS; NO REDEMPTION FOR SERIES 2005A BONDS. (A) In accordance with the Act and the terms of this Resolution. this Resolution hereby creates an issue of Bonds of the Issuer to be designated as "Collier County, Florida Limited General Obligation Bonds (Conservation Collier Program), Series 2005A" (or such other Series designation as the Chair /l18Y determine) to be issued in the aggregate principal amolU1t of not exceeding $75.000.000. The Series 2005A Bonds shall be issued for the principal purposes of '-...~ 12 ."-..- financl11g Costs oftlle :::005A Project. refinancing the PrIor Note. :1I1J paYlJ1g certain COStS and e.'<penses incurred in connection with the issuance of the Seri~s 2005r\ Bonds. The exact principal amount of the Series 2005A Bonds to be issued by the Issuer shall be determined by the Chair in accordance \vith the Official Notice of Sale provided such rrincip.::d amount does not exceed $75,000.000. The Series 2005A Bonds shall be dated as of the date of their delivery (or such other date as determined by the Chair), shall be issued in the form of fully registered bonds in the denominations of $5,000 and any integral multiple thereof, and shal1 be numbered consecutively from one upward in order of maturity preceded by the Jetter "R." The Series 2005A Bonds shall bear interest computed on the basis of a 360-day year consisting of twelve 30-day months. from their dated c1ate, payable semiannually, on July 1 and January 1 of each year (each an "Interest Date"), commencing on July 1, 2005 (or such other date as determined by the Chair), at sLlch rates and maturing in such amounts on January 1 of such years as shall be determined by the Chair, subject to the conditions set forth in this Section 2.02 and the provisions of the Official Notice of Sale. The final maturity orthe Series 2005A Bonds shall not be later than January L 2013. All of the terms of tht: Series 2005A Bonds will be included in a certificate to be executed by the Chair folJowing the award of the Series 2004 Bonds (the "A\\ard Certificate") and shJll be set forth in the final OfficiJI Statement, JS deSCrIbed herein. The principal of the Series 200SA Bonds is payable upon presentation and surrender of the Series 200SA Bonds at the designated corporate frust office of the Paying Agent. Interest payable on the Series 2005A Bonds on any Interest Date \vill be paid by check or draft mailed to the Holder in whose name such Series 2005A Bond shall be registered at the close of business on the date which shall be the fifteenth day (IA.'hether or not J business day) of the calendar month next preceding such lmerest Date, or, at the request of such Holder. by bank wire transfer for the :..lCcount of such Holder. All payments of principal of and interest on the Series 200SA Bonds shall be payable in any coin or currency of the United States of America which at the time of paymen1 is legal tender for the payment of public and private debts. (3) The Chair, on behalf of the Issuer and only in accordance with the terms hereof and of the Otlicial Notice of Sale, shall award the Series 2005A Bonds to the undenvriter or underwriters that submit a bid proposal which complies in all respects Vvith this Resolution Jnd the Official Nl)tice of Sale Jnd otTers to purchase the Series 2005.'\ Bonds at the lo\vest true interest cost to the Issuer. as calculated by the Financial /\d\'isor in accordance with the terms and provisions of the Official Notice of Sale: provided. however. the Series 2005A Bonds 5h<1I1ll0t be awarded to any bidder unless the lrue interest cost set forth in the wi.nning bid (as calculated by the FinJncial Advisor) is 13 ",".,...~ ~" equal to or less than 6.00%. In accordance with the provisions of the Official Notice of Sale. the Chair may, in his or her sole discretion, reject any and all bids. (C) The Series 2005A Bonds shall not be subject to redemption prior to their respective maturities. SECTION 2.03, APPLICATION OF BOND PROCEEDS. (A) The proceeds received from the sale of the Series 2005A Bonds shall be applied by the Issuer simultaneously with the delivery of such Series 2005A Bonds to the purchaser or purchasers thereof, as follows: (i) A sufficient amount of the Series 2005A Bond proceeds shall be deposited into the Project Fund and shall be used to pay to oosts of the 2005A Project. (ii) A sufficient amount of the Series 2005A Bonds shall be transferred to the Finance Commission to pay the Prior Note in full. (iii) A sufficient amount of the Series 2005A Bond proceeds shall be applied to the payment for the premium for the Bond Insurance Policy. (iv) A sufficient amount of the Series 2005A Bond proceeds shall be held by the Issuer to pay costs and expenses associated with the issuance of the Series 2005A Bonds. (v) Any remaining amounts of the Series 2005A Bond proceeds shall be deposited in the Sinking Fund and shall be used to pay interest becoming due on the Series 200SA Bonds. (B) The proceeds of any Series of Additional Bonds shall be applied by the Issuer in accordance with the provisions of the Supplemental Resolution authorizing such Series of Bonds. SECTION 2.04. EXECUTION OF BONDS. The Bonds shall be executed in the name of the Issuer with the manllal or facsimile signature of the Chair and the official sea] of the Issuer shall be imprinted thereon, and attested with the manual or facsimile signature of the Clerk. In case anyone or more of the officers who shall have signed or sealed any of the Bonds or whose facsimile signature shall appear thereon shall cease to be slIch officer of the Issuer before the Bonds so signed and sealed have been actually sold and delivered, such Bonds may nevertheless be sold and delivered as herein pro\'ided :md may be issued as if the person who signed or sealed such Bonds had not ceaseJ to hold such office. Any Bond may be signed and sealed on behalf of the Issuer by such person \-vho at the actual time of the execution of such Bond shall hold the proper '....~..- 14 -.c office of the Issuer. although at the date of such Bond such person may not have held sllch office or may not have been so authorized. The Issuer may adopt and use for such purposes the facsimile signatures of any such persons who shall have held such offices at any time after the date of the adoption of this Resolution., notwithstanding that either or both shall have ceased to hold such office at the time the Bonds shail be actually sold and ddivered. SECTION 2.05. A UTHENTICA TION. No Bond shall be secured hereunder or entitled to the benefit hereof or shall be valid or obligatory for any purpose unless there shall be manually mdorsed on such Bond a certificate of authentication by the Registrar or such other entity as may be approved by the Issuer for such purpose. Such certificate on any Bond shall be conclusive evidence thar such Bond has been duiy authenticated and delivered under this Resolution. The form of such certificate shall he substantially in the form provided in Section 2.10 hereof SECTION 2.06. TEMPORARY BONDS. Until the definitive Bonds are prepared, the Issuer may execute, in the same manner as is provided in Section 1.04 hereof, and deliver, upon authentication by the Registrar pursuant to Section 2.05 hereof. in lieu of definitive Bonds, but subject to the same provisions, limitations and conditions as the definitive Bonds, except as to the denominations thereof one or more temporary Bonds substantially of the tenor of the definitive Bonds in lieu of which such temporary Bond or Bonds are issued, in denominations authorized by the Issuer by Supplemental Resolution.. and with such omissions. insertions and variations as may be appropriate to temporary Bonds. The Issuer, at its own expense, shall prepare and execute detinitive Bonds. which shall be authenticated by the Registrar. Upon the surrender of such temporary Bonds for exchange, the Registrar. without charge to the Holder thereof, shall deliver in exchange therefor definitive Bonds, of the same aggregate principal amount and maturity as the temporary Bonds surrendered. Until so exchanged. the temporary Bonds shall in all respects be entitled to the same benefits and security as definitive Bonds issued pursuant to this Resolution. :\Il temporary Bonds ~urrendered in exchange for another temporary Bond or Bonds or for a definitive Bond or Bonds shall be forthwith cancelled by the Registrar. SECTION 2.07. BONDS MlJTILA TED, DESTROYED, STOLEN OR LOST. In case any Bond shall become mutilated. or be destroyed, stolen or lost. the Issuer may, in its discretion, issue and deliver, and th~ Registrm shall authenticate. a nevv Bond of like tenor as the Bond so mutilated. destroyed, stolen or lost, in exchange and substitution for such mutilated Bond upon surrender and cancellation of such mutilated Bond or in lieu of and substitution for the Bond destroyed. stolen or lost. and upon the Holder furnishing the Issuer and the Registrar proof of his ownership thereof and satisfactory indell1l11ty and complYing WITh such other re2sonJble regulations and \. ....- 15 '- conditions as the Issuer or the Registrar may prescribe and paying such expenses as the Issuer and the Registrar may incur. All Bonds so surrendered or otherwise substituted shall be cancelled by the Registrar. If any of the Bonds shall have matured or be about to mature, instead of issuing a substitute Bond, the Issuer may pay the same or cause the Bond to be paid, upon being indemnified as aforesaid, and if such Bonds be lost, stolen or destroyed, without surrender thereof. Any such duplicate Bonds issued pursuant to this Section 2.07 shall constitute original contractual obligations on the part of the Issuer whether or not the lost, stolen or destroyed Bond be at any time found by anyone, and such duplicate Bond shall be entitled to equal and proportionate benefits and rights provided hereunder to the same extent as all other Bonds issued hereunder. SECTION 2.08. INTERCHANGEABILITY, NEGOTIABILITY AND TRANSFER. Bonds, upon surrender thereof at the office of the Registrar with a written instrument of transfer satisfactory to the Registrar, duly executed by the Holder thereof or his attorney duly authorized in writing, may, at the option of the Holder thereof, be exchanged for an equal aggregate principal amount of registered Bonds of the same maturity of any other authorized denominations. The Bonds issued under this Resolution shall be and have all the qualities and incidents of negotiable instruments under the law merchant and the Uniform Commercial Code of the State of Florida, subject to the provisions for registration and transfer contained in this Resolution and in the Bonds. So long as any of the Bonds shall remain Outstanding, the Issuer shall maintain and keep, at the office of the Registrar, books for the registration and transfer of the Bonds. .. The transfer of any Bond shall be registered only upon the books of the Issuer, at the office of the Registrar, under such reasonable regulations as the Issuer may prescribe, by the Holder thereof in person or by his attorney duly authorized in writing upon surrender thereof together with a written instrument of transfer satisfactory to the Registrar duly executed and guaranteed by the Holder or his duly authorized attorney. Upon the registration or transfer of any such Bond, the Issuer shall issue, and cause to be authenticated. in the name of the transferee a new Bond or Bonds of the same aggregate principal amollnt and maturity as the surrendered Bond. The Issuer, the Registrar and any Paying Agent or fiduciary of the Issuer may deem and treat the Person in whose name any Outstanding Bond shall be registered upon the books of the Issuer as the absolute owner of such Bond, whether such Bond shall be overdue or not, for the purpose of receiving payment of. or on account of, the principal and interest on such Bond and for all other purposes. and all sLlch payments so made to any such Holder or upon his order shall be valid and effectual to satisfy and discharge the liability upon such Bond to the '-..- 16 '-.. extent of the sum or sums so paid and neither the Issuer nor the Registrar nor any Paying Agent or other fiduciary of the Issuer shall be affected by Jny notice to the contrary. The Registrar, in any case Mere it is not also the Paying Agent with respect to the Bonds, forthwith (A) following the fifteenth day prior to an Interest Date for the Bonds. and (B) at any other time as reasonably requested by the Paying Agent, certify and furnish to the Paying Agent the names, addresses and holdings of the Bondholders and any other relevant information reflected in the registration books. Any Paying Agent of any fully registered Bond shall effect payment of interest on such Bonds by mailing a check to the Holder entitled thereto or may, in lieu thereof, upon the request and at the expense of such Holder, transmit such payment by bank wire transfer for the account of such Holder. In all cases in which the privilege of exchanging Bonds or the transfer of Bonds shall be registered, the Issuer shall execute and the Registrar shall authenticate and deliver such Bonds in accordance with the provisions of this Resolution. Execution of Bonds by the Chair and Clerk for purposes of exchanging, replacing or registering the transfer of Bonds may occur at the time of the original delivery of the Bonds. A1J Bonds surrendered in any such exchanges or registration of transfer shall be held by the Registrar for safekeeping until directed by the Issuer to be cancelled by the Registrar. For every such exchange or registration of transfer, the I SSLler or the Registrar may make :l charge sufficient 10 reimburse it for any tax, fee. expense or other governmental charge required to be paid with respect to such exchange or registration of transfer. The fssuer and the Registrar shall not be obligated to make any stich exchange or transfer of the Bonds during the period commencing on the fifteenth day of the month immediately preceding an Interest Date on the Bonds and ending on such Interest Date, or, in the case of ::my proposed redemption of Bonds of such Series, then, for the Bonds subject to redemption, during the 15 days next preceding the date of the lirst mailing of notice of such redemption and continuing until such redemption date. The Issuer may elect to issue any Bonds as uncl?rtiticated registered public obligations (not represented by instruments), commonly known as book-entry obligations, provided it shall establish a system of registration therefor by Supplemental Resolution. In accordance with Section 2.09 hereof. the Issuer elects to initially provide for a book entry only system of registration for the Series :::005A Bonds. SECTION 2.09. FULL BOOK ENTRY FOR SERIES 200SA BONDS. Notwithstanding the provisions set forth in Section 2.08 hereof. the Series 2005A Bonds shall be initially issued in the form of a separate Sll1gJe certificated fully registered Bond for each of the maturities of the Series 2005A Bonds Upon inlIial issuance. the o\\nership of each such Bond shall be registered in the regisnatlon books kepI by the Registrar in the name of Cede & Co.. as nominee \)f The Depository Trust, Company '''-..-' 17 '-..- COTe"). All of the Outstanding Series 2005A Bonds shall be registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee of DTe. As long as the Series 2005A Bonds shall be registered in the name of Cede & Co., all payments of principal on the Series 2005A Bonds shall be made by the Paying Agent by check or draft or by bank wire transfer to Cede & Co., as Holder of the Series 2005A Bonds, upon presentation of the Series 2005A Bonds to be paid, to the Paying Agent. With respect to the Series 2005A Bonds registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee of OTC, the Isster, the Registrar and the Paying Agent shall have no responsibility or obligation to any direct or indirect participant in the OTC book-entry program (the "Participants"). Without limiting the immediately preceding sentence, the Issuer, the Registrar and he Paying Agent shall have no responsibility or obligation with respect to (A) the accuracy of the records of DTC, Cede & Co. or any Participant ".,'ith respect to any ownership interest on the Series 2005:\ Bonds, (B) the delivery to any Participant or any other Person other than a Bondholder, as shown in the registration books kept by the Registrar, of any notice with respect to the Series 2005A Bonds, or (C) the payment to any Participant or any other Person, other than a Bondholder, as shown in the registration books kept by the Registrar, of any amollnt with respect to principal of or interest on the Series 2005A Bonds. The Issuer. the Registrar and the Paying Agent shall treat and consider the Person in whose name each Series 2005A Bond is registered in the registration books kept by the Registrar as the Holder and absolute owner of such Bond for the purpose of payment of principal and interest with respect to such Bond, for the purpose of giving notices and other matters v"ith respect to such Bond, for the p..1rpose of registering transfers with respect to such Bond, and for all other purposes whatsoever. The Paying Agent shall pay all principal of and interest on the Series 200SA Bonds only to or upon the order of the respective Holders, as shown in the registration books kept by the Registrar, or their respective attorneys duly authorized in writing, as provided herein and all such payments shall be valid and effective to fully satisfy and discharge the Issuer's obligations with respect to payment of principal and interest on the Series 2005A Bonds to the extent of the sum or sums so paid. No Person other than a Holder, as shown in the registration books kept by the RegIstrar, shall receive (] certificated Bond evidencing the obligation of the Issuer to make payments of principal and interest pursuant to the provisions of this Resolution. Upon delivery by DTC to the Issuer 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 Section 2.08 with respect to transfers during the 15 days next preceding an Interest Date, the words "Cede & Co." shall refer to such new nominee of OTC; and upon receipt of such notice, the Issuer shall promptly deliver a copy of the same to the Registrar and the Paying Agent. "-.- 18 ",-. Upon (A) receipt by the Issuer of written notice from DTe (i) to the dfecT lhal .1 continuation of the requirement that al1 of the Outstc:Jnding Series ~OOSA Bonds be registered in the registration books kept by the Registrar in the name of Cede & CO.. J.S nominee of DTC, is not in the best interest of the beneficia! owners of the Series 2005/\ Boncb or (ii) to the effect that DYC is unable or unwilling to discharge its responsibilities and no substitute depository willing to undertake the functions of DTC hereunder can be found which is willing and able to undertake such funclions upon reasonable and customary terms, or (B) determination by the Issuer that sllch book-entry only system is burdensome or undesirable to the Issuer and complianc e by the Issuer with all then applicable rules and procedures of DYC, the Series 2005A Bonds shall no longer be restricted to being registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee of DTC, but may be registered in whatever name or names Holders shall designate, in accordance with the provisions of this Resolution. In such event, the Issuer shall issue, and the Registrar shall authenticClte. trClnsfer Clnd exchange the Series 2005A Bonds of like principal amount and maturity, in denominations of $5,000 or any integral multiple thereof to the Holders thereDf. The foregoing notWithstanding, until such time as participation in the book-entry only system is discontinued, the provisions set forth in the Blanket Letter of Representations previously executed by the Issuer and delivered to DYC shall apply to the payment of principal of and interest on the Series 200SA Bonds. SECTION 2.10. FORM OF BONDS. The text of the Bonds, except for Capital Appreciation Bonds and Variable Rate Bonds, the form of which shall be provided by Supplemental Resolution of the Issuer, shall be in substantially the following form with such omissions, insertions and variations as may be necessary and/or desirable and approved by the Chair or the Oerk prior to the issuance thereof (which necessity and/or desirability and approval shall be presumed by such officer's execution of the Bonds and the Issuer's delivery of the Bonds to the purchaser or purchasers thereot): [Remainder of page intentionally left blanK] '- 19 '-.-. No. R- $ UNITED STATES OF AMERICA COLLIER COUNTY, FLORIDA LIMITED GENERAL OBLIGATION BOND (CONSERV A TION COLLIER PROGRAM), SERIES Interest Rate Maturity Date Date of Original Issue CUSIP % ,20 Registered I.folder: Principal Amount: KNOW ALL MEN BY THESE PRESENTS, that Collier County, Florida, a political subdivision of the State of Florida (the "Issuer"), for value received, hereby promises to pay to the Registered Holder identified above, or registered assigns as hereinafter provided. on the Maturity Date identified above, the Principal Amount identified above and to pay interest on such Principal Amount from the Date of Original Issue identified above or from the most recent interest payment date to which interest has been paid at the Interest Rate per annum identified above on 1 and I of each year. commencing I, , until such Principal Amount shall have been paid. Such Principal Amount and interest on this Bond are payable in any coin or currency of the United States of America which, on the respective dates of payment thereof, shall be legal tender for the payment of public and private debts. Such Principal Amount is II1yable at the designated corporate trust office of , as Paying Agent. Payment of each installment of interest shall be made to the person in whose name this Bond shall be registered on the registration books of the Issuer maintained by (the "Registrar"), at the cJose of business on the fifteenth day (whether or nor a business day) of the calendar month next preceding each interest payment date and shall be paid by a check or draft of such Paying Agent mailed to such Registered Holder at the Jddress appearing on such registration books or, at the wrinen request of such ............ 20 "'--- Regist(;reJ Holder. by bank wire trnnsfer to an account of sllch Holder designJted in such wrnten request. This Bond is one of an authorized issue of Bonds in the aggregate principal amount of $ (the "Bonds") of like date, tenor LlI1d effecl. except as to number. rn2.turity, interest rate and redemption provisions, issued to finance (or refinance] the acquisition of certain environmentally sensitive lands within the County, as more particularly described in the hereinafter defined Resolution. and in full compliance with the Constitution and Statutes of the State of Florida, including panicularly Chapter ]25. Florida Statutes, Article VII, Section] 2 of the Florida Constitution. Ordinance No. _' enacted by the Board of County Commissioners of the County (the "Board") on December 14, 2004, as it may be amended or supplemented from time to time. the Referendum Resolution (as defined in the Resolution) and Resolution No. _ of Collier County, Florida duly adopted by the Board on December 14,2004 (the "Resolution') as it may be amended or supplemented from time to time, and is subject to all the terms and conditions of such Resolution. In accordance with the terms of the Resolution, the IssLler has made a limited pledge of its faith. credit and taxing power for the full and prompt payment of the principal of and interest on the Bonds. A direct annual tax shall be levied, not in excess ofon~ quarter (1/4) of one milL upon all taxable property within the Issuer to make such p<J)'mems. ProvisIOn shall be included and made in the annu<J1 budget and tax levy for the levy of sLlch taxes, which tax shall be levied and collected at the same time. and in the same manner, 3S othe r :Id valorem taxes of the Issuer are assessed, levied and collected. Reference to the Resolution is hereby mode for a description of the funds charged with Jnd pledged to the payment of the principal of and interest on the Bonds. the nature and extent of the security for the payment of the Bonds. a statement of the rights, duties and obligations of the Issuer, the rights of the Holders of the Bonds. to all the provisions of which Resolution the holder hereof by the acceptance of this Bond assents. It is hereby certitied and recited that all acts. conditions and things required to exist. to happen and to be performed precedent to and in the issuance of this Bond exist. have happened and ha\'t~ been performed in regular and due form and time as required by the lavvs and Constitution of the State of Florida applicable thereto. ~md that the issuance of the Bonds of this issue does not violate any constitutional. statutory, or charter limitation or provision. and that provision has been made for the collection of a drecr annual tax, without limitation, on all propeny in the Issuer taxable for such purpose sufficient to pay and discharge the principal hereof at maturity. The Issuer has established a book-entry system of registration for the Bonds exc:eot as specificall~ provided othef\vise in the Resolutllln. dn agent ""ill hold this BonG '-" 21 "-'~ on behalf of the beneficial O\\iner hereof. By acceptance of a confirmation of purchase, delivery or transfer, the beneficial owner of this Bond shaJJ be deemed to have agreed to such arrangement. The transfer of this Bond is registrable by the Bondholder hereof in person or by his attorney or legal representative at the designated corporate trust office of the Registrar but only in the maru1er and subject to the conditions provided in the Resolution and upon surrender and cance!lation of this Bond. [Insert redemption provisions, if any.] This Bond shall not be valid or become obligatory for any purpose or be entitled to any benefit or security under the Resolution until it shall have been authenticated by the execution by the Registrar of the certificate of authentication endorsed hereon. IN WITNESS \VHEREOF, Collier County, Florida has issued this Bond and has caused the same to be signed by the Chair of its Board of County Commissioners and attested to by the Clerk of the Circuit Court for Collier County, Florida and Ex-Officio Clerk of the Board of County Commissioners and its official seal or a facsimile of thereof to be affixed, impressed, imprinted, lithographed or reproduced hereon, all as of the _ day of COLLIER COUNTY, FLORIDA (SEAL) By: Chair, Board of County Commissioners ATTESTED: Clerk, Circuit Court for Collier County, Florida and Ex-Officio Clerk of the Board of County Commissioners '-' 22 "--, "-' CERTIFICATE OF AUTHENTICATJON This Bond is one of the Bonds issued under the provisions of the within- mentioned Resolution. , as Registrar Date of Authentication: By: Authorized Signatory ,'" .:...J "'-./ Unkss this certificate is presented by an authorized representative of The Depository Trust Company to the Issuer or its agent for registration of transfer, exchange or payment and any certificate issued is registered in the name of Cede & Co. or such other name as requested by the authorized representative of The Depository Trust Company and any payment is made to Cede & Co., ANY TRANSFER, PLEOGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the registered owner hereof, Cede & Co., has an interest herein. ASSIGNMENT AND TRANSFER FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto (Please insert Social Security or other identifying number of assignee) the attached Bond of Collier County, Florida, and does hereby constitute and appoint attorney, to transfer the said Bond on the books kept for registration thereof, with full power of substitution in the premises. Date: Signature Guaranteed by: NOTICE: Signature must be guaranteed by an institution \vhich is a participant in the Securities Transfer Agent Medallion Program (ST AtvIP) or similar program. NOTICE: The signature to this assignment must correspond with the name of the Registered Holder as it appears upon the face of the within Bond in every particular. without alteration or enlargement or any change whatever and the Social Securi ty or other identifying number of such assignee must be supplied. ~ 24 "-...."" The following abbreviations, v,.hen used in the inscription on [he face of the \\'ithin Bond. shall be construed as though they were written out in full Dccording to appJic8b!;: laws or regulations: TEN COM -- as tenants in common TEN ENT -- as tenants by the entireties JT TEN -- as joint tenants with right of survivorship and not as tenants In common UNIF TRANS MIN ACT -- (Cust.) Custodian for under Uniform Transfers to Minors Act of (State) Additional abbreviations may also be used though not In list above. "'-./ .., - -) '"'-'" ARTICLEIII REDEMPTION OF BONDS SECTION 3.01. PRIVILEGE OF REDEMPTION. (A) The terms of this Article III shall apply to redemption of Bonds other than Capital Appreciation Bonds or Variable Rate Bonds. The terms and provisions relating to redemption of Capital Appreciation Bonds and Variable Rate Bonds shall be provided by Supplemental Resol ution. (B) The Series 2005A Bonds shall not be subject to redemption pnor to maturity. (C) Additional Bonds shall be subject to redemption in accordance with and as provided in the terms of the Supplemental Resolution setting forth the details of such Additional Bonds. SECTION 3.02. SELECTION OF BONDS TO BE REDEEMED. The Bonds shall be redeemed only in the principal amount of $5,000 each and integral multiples thereof. The Issuer shall, at least forty-five (45) days prior to the redemption date (unless a shorter timeperiod is satisfactory to the Registrar, but in no event less !han thirty-tive (35) days) notify the Registrar of such redemption date and of the principal amount of Bonds to be redeemed. For purposes of any redemption of less than all of the Outstanding Bonds of a single maturity, the particular Bonds or portions of Bonds to be redeemed shall be selected not more than forty-five (45) days and not less than thirty-five (35) days prior to the redemption date by the Registrar from the Outstanding Bonds of the maturity or maturities designated by the Issuer or by such method as the Registrar shall deem bir and appropriate and which may provide for the selection for redemption of Bonds or portions of Bonds in principal amounts of $5,000 and integral multiples thereof. If less than all of the Outstanding Bonds of a single maturity are to be redeemed, the Registrar shall promptly notify the Issuer and Paying Agent (if the Registrar is not the Paying Agent for such Bonds) in writing of the Bonds or portions of Bonds selected for redemption and, in the case of any Bond selected for partial redemption, the principal amount thereof to be redeemed. SECTION 3.03. NOTICE OF REDEMPTION, Notice of such redemption, which shall speci fy the Bond or Bonds (or portions thereof) to be redeemed and the date and place for redemption. shall be given by the Registrar on behalf of the Issuer, and (A) shall be filed with the Paying Agent of such Bonds and (B) shall be mailed first class, postage prepaid, at least thirty (30) days prior to the redemption date to all Holders of "-~ 26 ------ Bonds to be redeemed at their addresses as they appear on the regJstLJtlon books kept b:- the Registrar as of the date of mailing of such notice. Failure to mail notice to the Holders of the Bonds to be redeemed, or any defect therein, shall not affect the proceedings for redemption of Bonds as to which no such failure or defect has occurred. Failure of Jny Holder to receive any notice mailed as herein provided shall not affect the proceedings for redemption of such Holder's Bonds. Each notice of redemption shall state: (I) the CUSIP numbers of all Bonds being redeemed, (2) the original issue date of such Bonds, (3) the maturity date and rate of interest borne by each Bond being redeemed, (4) the redemption date, (5) the Redemption Price, (6) the date on which such notice is mailed, (7) if less than all Outstanding Bonds are to be redeemed, the certiticate number (and, in the case of a partial redemption of any Bond, the principal amount) of each Bond to be redeemed, (8) that on such redemption date there shall become due and payable upon each Bond to be redec:med the Redemption Price thereof, or the Redemption Price of the specified portions of the principal thereof in the case of Bonds to be redeemed in part only, together with interest accrued thereon to the redemption date, and that from and after such date interest thereon shall cease to accrue <lnd be payable. (9) that the Bonds to be redeemed, whether <.IS a whole or in part. are to be surrendered for payment of the Redemption Price at the designated office of the Paying Agent at an address specified, and (10) unless sufficient funds have been set aside by the Issuer for such purpose prior to the mailing of the notice of redemption, that such redemption is conditioned upon the deposit of suffLcient funds for such purpose on or prior to the date set for redemption; and provided, further, that such notice and the redemption set forth therein may be subject to the satisfaction of one or more additional conditions set forth therein. Within sixty (60) days of the date of redemption, the Registrar shall give a second notice of redemption by mailing another copy of the redemption notice to the registered Holders of Bonds called for redemption but which have not been presented for payment within thirty (30) days after the date set for redemption; provided. however, the failure to provide such further notice of redemption or to comply \vith the terms of this paragraph shall not in any manner defeat the effectiveness of a call for redemption if notice thereof is given as prescribed above. 1n addition to [he mailing of the notice described above. ~ach notice of redemption and payment of the redemption price shall meet the following requirement; provided. however. the failure to provide sllch further notice of redemption or to comply \vith the terms of this paragraph shall not in any manner defeat the effectiveness of a call for redemption if notice thereof is given as prescribed above: Each further notice of redemption shall be sent by certified mail or overnight deli vcry service or telecopy to all registered securities depositories then \.......... 27 -~ in the business of holding substantial amounts of obligations of types comprising the Bonds (such depositories now being The Depository Trust Company, New York New York and Midwest Securities Trust Company, Chicago, Illinois) and to tvv'o or more national information services which disseminate notices of prepayment or redemption of obligations such as the Bonds (such information services now being Financial Jnfonnation, Inc.'s "Daily Called Bond Service," Jersey City, New Jerse)i, Kenny Infonnation Services "Called Bond Service," New York, New York, Moody's "Municipal and Government," New York, New York and Standard & Poor's "Called Bond Record," New York, New York). SECTION 3.04. REDEMPTION OF PORTIONS OF BONDS. Any Bond which is to be redeemed only in part shall be surrendered at any place of payment specified in the notice of redemption (with due endorsement by, or written instrument of transfer in form satisfactory to the Registrar duly executed by, the Holder thereof or his attorney duly authorized in writing) and the Issuer shall execute and the Registrar shall authenticate and deliver to the Holder of such Bond, without service charge, a new Bond or Bonds, of the same interest rate and maturity, and of any authorized denomination as requested by such Holder, in an aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bonds so surrendered. SECTION 3.05. PAYMENT OF REDEEMED BONDS. Notice of redemption having been given substantially as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the redemption date, become due and payable at the Redemption Price therein specified, and from and after such date (unless the Issuer shall default in the payment of the Redemption Price) such Bonds or portions of Bonds shall cease to bear interest. Upon surrender of such Bonds for redemption in accordance with said notice, such Bonds shall be paid by the Registrar and/or Paying Agent at the appropriate Redemption Price, plus accrued interest. Each check or other transfer of funds issued by the Paying Agent to pay the Redemption Price of Bonds being redeemed shall bear the CUSIP number or numbers of such Bonds and identify the payments applicnb!c to each CUSIP number. All Bonds which have been redeemed shall be cancelled by the Registrar and shall not be reissued. [Remainder of page intentionally left blank] ,-' 28 '-.- ARTICLE IV SECURITY, SPECIAL FUNDS AND APPLICA TION THEREOF SECTION 4.01. LIMITED GENERAL OBLIGATIONS OF THE ISSUER The faith, credit and taxing power of the Issuer shall be and are hereby pledged for the full and jIompt payment of the principal of and interest on the Bonds. provided, that such pledge is a limited obligation of the Issuer which shall not exceed one quarter (1/4) of one mill of ad valorem taxes. A direct annual tax not in excess of one quarter (1/4) of one mill shall be levied upon all taxable property within the Issuer to make such payments. No Holder or Holders of the Bonds shall ever have the right to compel the full faith, credit and taxing power of the Issuer in amount greater than the Limited Ad Valorem Tax. Provision shall be included and made in the annual budget and tax levy for the levy of the Limited Ad Valorem Tax hereinbefore provided. Notwithstanding any other provision of this Resolution, in determining the amount of the Limited Ad Valorem Tax to be levied for a particular Fiscal Year to pay debt service on the Bonds, the Issuer shall levy, at a minimum, an amount that assumes that the percentage of Limited Ad Valorem Tax that will be collected in such Fiscal Year will be no higher than the percentage of Limited Ad Valorem Tax collected for the immediately preceding Fiscal Year. Whenever the Issuer shall, in any Fiscal Year. have irrevocably deposited in the Sinking Fund any moneys derived from sources other than the aforementioned Limited Ad VaIorem Tax, said Limited Ad Valorem Tax may be correspondingly diminished: but any such diminution must leave available an amount of such Limited Ad Valorem Tax, after allowance for anticipated delinquencies in collection, fully sufficient, with such moneys so deposited from other sources, to assure the prompt payment of principal, interest and other related charges falling due prior to the time that the proceeds of the next annual Limited Ad Valorem Tax levy will be available. Such Limited Ad Valorem Tax shall be levied and collected at the same time, and in the same manner, as other ad valorem taxes of the Issuer are assessed. levied and coJ/ecred. The limited Ad Valorem Tax shall be levied and collected in accordance with all applicable law, including, hit not limited to, the Referendum Resolution. The Issuer hereby irrevocably pledges such Limited Ad Valorem Tax to the payment of the Bonds. SECTION 4.02. PROJECT FUND. The Issuer co"'enants and agrees to establish a special fund to be kno\vn as the "Collier County. Florida Limited General Obligation Bonds (Conservation Collier Program) Project Fund," which' shall be used only for payment of the COStS of Projects. Moneys in the Project Fund.. until applied to p<ryment of any item of the Costs of a Project in the manner herein;.tfter provided. shall be ",-' 29 "'-./ held in [rust by the Issuer and shall be subject to a lien and charge in favor of the Holders of the Bonds and for the further security of such Holders. The Issuer shall establish within the Project Fund a separate account for each Project (including the 200SA Project), the Costs of which are to be paid in whole or in part out of the Project Fund. The Issuer covenants that the acquIsitIOn, construction and equipping of each Project will be completed without delay and in accordance with sound engineering practices. The Issuer shall only make disbursements or payments from the applicable account of the Project Fund to pay Costs of the Project for which such account was established, except as provided below with respect to any surplus proceeds in a particular account. The Issuer shall keep records of such disbursements and payments and shall retain all such records for such periods of time as is required by applicable law. Notwithstanding any of the other provisions of this Section 4.02, to the extent that other moneys are not available therefor, amounts in an account of the Project Fund shall be applied to the payment of principal and interest on the Series of Bonds for which such account was established or to reimburse a Credit Facility Provider for the payment of such principal and interest. The date of completion of acquisition, construction and equipping of a Project shaii be filed by the Clerk with the Issuer. Promptly after the date of the completion of a Project, LInd after paying or making provisions for the payment of all unpaid items of the Costs of such Project, the Issuer shall apply any balance of moneys remaining in the Project Fund in the following order of priority: (A) deposit such balance to any other accOWH established in the Project Fund for which the Clerk certifies that there are insufficient moneys to pay the Costs of the Project for which such account was established, (B) deposit such balance to such other fund or account established hereunder as shall be determined by the Issuer; provided the Issuer has received an opinion of Bond Counse I to the effect that such transfer shall not adversely affect the exclusion, if any, of interest on the Bonds (other than Taxable Bonds) from gross income for pUI'JDses of federal income taxation, and (C) apply such balance for any other lawful purpose; provided the Issuer has received an opinion of Bond Counsel to the effect that such application shall not adversely affect the exclusion, if any, of interest on the Bonds (other than Taxable Bonds) from gross income for purp:>ses of federal income taxation SECTION 4.03. CREATION OF SINKING FUND; APPLICATION OF LIMITED AD VALOREM TAX. (A) There is hereby created the "Collier County, Florida Limited General Obligation Bonds (Conservation Collier Program) Sinking Fund" which shall be held in trust [or the benefit of the Bondholders. There is hereby ordered levied upon all the property taxable for such purpose within the Issuer, the "--' 30 ......- Limited Ad Valorem Tax in an amount sufficient to produce amounts to pay the principal, interest, charges of the Paying Agents and Registr.J.fs. and any other amounts that are properly due and owing with respect to the repayment of the Bonds: provided. however that in no event shall the levy of the Limited Ad Valorem Tax be in excess of , . one-quarter (1/4) of one mill on all taxable property within the lssller. The Limited Ad Valorem Tax levied pursuant to this Resolution as collected shall be paid over for deposit into the Sinking Fund. (B) Money in tre Sinking Fund shall be used solely for the purpose of paying the Annual Debt Service on the Bonds coming due (whether by maturity, scheduled mandatory redemption or otherwise). Moneys in the Sinking Fund shalt be disbursed for (i) the payment of the interest on the Bonds secured hereby as such interest falls due, (ii) the payment of the principal of the Bonds secured hereby at their respective maturities, (iii) the payment of the Redemption Price of Bonds being redeemed: (iv) the purchase of Bonds in the cpen market. provided. however, the price paid shall not exceed the principal amount plus accrued interest; and (v) the payment of the necessary charges for paying Bonds and interest thereon. (C) At least one business day prior to the date establtshed for payment of any principal of or interest on the Bonds, the Issuer shall withdraw from the Sinking Fund sufficient moneys to pay such principal or interest and deposit such moneys with the Paying Agent. Such deposits with the Paying Agent shall be made in moreys available to make payments of the principal of and interest on the Bonds as the same becomes due. SECTION 4.04. REBATE FUND. Amounts on deposit in the Rebate Fund shall be held in trust by the Issuer and llsed solely to make required rebates to the United Slates (except to the extent the same may be transferred to the Issuer) and the Bondholders shall have no right to have the same applied for debt service on the Bonds. If the rebate requirements of Section 148(f) of the Code Jre l1pplicable, the fssuer agrees to undertake all actions required of it in its arbitrage certificate related to the Bonds, including, but not limited to: (A) making a determination in accordance with the Code of the amount required to be deposited in the Rebate Fund: (B) depositing the amount determined 111 claus~ (A) c1bove into the Rebate Fund; (C) paying on the dates nnd in the manner required by the Code to the United States Treasury from the Rebate Fund and any other legally available moneys of the ............ 31 '...v" Issuer such amounts as shall be required by the Code to be rebated to the United States Treasury; and CD) keeping such records of the determinations made pursuant to this Section 4.04 as shall be required by the Code, as well as evidence of the fair market value of any investments purchased with proceeds of the Bonds. The provisions of the above-described arbitrage certificate may be amended without the consent of any Holder or the Credit Facility Provider from time to time as shall be necessary, in the opinion of Bond Counsel, to comply with the provisions of the Code. SECTION 4.05. INVESTMENTS. Moneys on deposit in the Project Fund and the Sinking Fund shall be continuously secured in the manner by which the deposit of public funds are authorized to be secured by the laws of the State. Moneys on deposit in the Project Fund and the Sinking Fund may be invested and reinvested in Authorized Investments maturing not later than the date on which the moneys therein will be needed for the purposes of such Funds. All investments shall be valued at market at least annually. Any and all income received by the Issuer from the investment of moneys in the Project Fund and the Sinking Fund shall be retained in such respective Fund. Nothing contained in this Resolution shall prevent any Authorized Investments acquired as investments of or security for funds held under this Resolution from being issued or held in book-entry form on the books of the Department of the Treasury of the United States. SECTION 4.06. SEPARATE ACCOUNTS. The moneys required to be accounted for in each of the foregoing funds and accounts established herein may be deposited in a single, non-exclusive bank account, and funds allocated to the various funds and accounts established herein may be invested in a common investment pool, provided that adequate accounting records are maintained to reflect and control the restricted allocation of the moneys on deposit therein and such investments for the various purposes of such funds, accounts and subaccounts as herein provided. The designation and establishment of the various funds and accounts in and by this Resolution shall not be construed to require the establishment of any completely independent, self-balancing funds as such term is commonly defined and used in governmental accounting, but rather is intended solely to constitute an earmarking of certain revenues for certain purposes and to establish certain priorities for application of such revenues as herein provided. ......--' 32 ,,/ ARTICLE V ADDITIONAL BONDS AND COVENANTS OF ISSUER SECTION 5.01. ISSUANCE OF ADDITIONAL BONDS. (A) No Additional Bonds, payable from the Limited Ad Valorem Tax shall be issued except upon the conditions and in the manner herein provided. The Issuer may issue one or more Series of Additional Bonds for anyone or more of the follov.'ing purposes: financing or refinancing the Costs of a Project, or the completion thereof, or refunding any or all Outstanding Bonds or refunding any other indebtedness of the Issuer that may lawfully be refunded with proceeds of Bonds. (8) No such Additional Bonds shall be issued unless: (i) no Event of Default (as specified in Section 60 I hereof) shall have occurred and be continuing hereunder, and (ii) an Authorized Issuer Officer certifies that the amount of Limited Ad Valorem Tax which would have been collected by the Issuer in the Fiscal Year immediately preceding the Fiscal Year in which the Additional Bonds are proposed to be issued had the full one-quarter (1/4) of one mill been levied, is at least equal to 1.00 times the Maximum Annual Debt Service of the proposed Additional Bonds and any Bonds that shall be Outstanding at the time of issuance of such Additional Bonds. (C) For the purpose of determining the Maximum Annual Debt Service under this Section 5 0 I, the interest rate on additional parity Vnriable Rate Bonds then proposed to be issued shall be deemed to be the Bond Buyer Rnenue Bond Index most recently published prior to the sale of such Additional Bonds. (D) For the purpose of determining the Maximum Annual Debt Service under this Section 5.0 I, the interest rate on Outstanding Varinble Rate Bonds shall be deemed to be (i) if such Variable Rate Bonds have been Outstanding for at least 12 months prior to the dale of sale of such Additional Bonds, the higher of (a) the actual rate of interest borne by such Variable Rate Bonds on the date of sale, and (b) the average interest rate borne by such Variable Rate Bonds during the 12-month period P'eceding the dale of sale, or (ii) if such Variable Rate Bonds have not been Outstanding for at least 12 months prior to the date of sale of such Additional Bonds, the higher of (a) the actual rate of interest borne by the Variable Rate Bonds on the date of sale. and (b) the Bond Buyer Revenue Bond Index most recently published prior to tb~ sale of sllch Additional Bonds. '-.-' ..,..., .)j "'-/ (E) Additional Bonds shall be deemed to have been issued pursuant to this Resolution the same as the Outstanding Bonds, and all of the other covenants and other provisions of this Resolution (except as to details of such Additional Bonds inconsistent therewith) shaH be for the equal benefit, protection and security of the Holders of all Bonds issued pursuant to this Resolution. (F) In the event any Additional Bonds are issued for the purpose of refunding any Bonds then Outstanding, the conditions of Section 5.01(B) hereof shall not apply, provided that the issuance of such Additional Bonds shall result in a reduction of aggregate debt service. (G) The Issuer agrees that at the time of issuing any Variable Rate Bonds it shall establish the Maximum Interest Rate with respect thereto and a Maximum Interest Rate with respect to amounts owed to the Credit Facility Provider which provides liquidity for such Bonds. Any Credit Facility Provider which provides a Credit Facility for liquidity purposes must be rated in one of the two highest short-term rating categories assigned by each rating agency rating the Bonds secured by such Credit Facility. SECTION 5.02. BOOKS AND RECORDS. The Issuer will keep books and records of the receipt of the Limited Ad Valorem Tax in accordance with generally accepted accounting principles, and any Credit Facility Provider, or Holder or Holders of at least $1,000,000 aggregate principal amount of Bonds shall have the right at all reasonable times to inspect the records, accounts and data of the Issuer relating thereto. SECTION 5.03. NO IMPAIRMENT. The pledging of the Limited Ad Valorem Tax in the manner provided herein shall not be subject to repeal, modification or impairment by any subsequent ordinance, resolution, agreement or other proceedings of the Issuer. SECTION 5.04. FEDERAL INCOME TAX COVENANTS. (A) The Issuer covenants with the Holders of the Bonds (other than Taxable Bonds) that it shall not use the proceeds of the Bonds in any manner which would cause the interest on the Bonds to be or become incl udable in gross income for purposes of federal income taxation. (B) The Issuer covenants with the Holders of the Bonds (other than Taxable Bonds) that neither the Issuer nor any Person under its control or direction will make any use of the proceeds of the Bonds (or amounts deemed to be proceeds under the Code) in any manner which would cause the Bonds to be "arbitrage bonds" within the meaning of the Code and neither the Issuer nor any other Person shall do any act or fail to do any act which \,,'ould cause the interest on the Bonds to become includable in gross income for purposes of federal income taxation. .............-.' 34 ,/ '......-~ (C) The Issuer hereby covenants with the Holders of the Bonds (other than Taxable Bonds) that it will comply with all provisions of the Code necessary to maintain the exclusion of interest on the Bonds from gross income for purposes of federal income taxation, including, in particular, the payment of any amount required to be rebated to the U.S. Treasury pursuant to the Code. [Remainder of page intentionally left blank] 35 "" ARTICLE VI DEFAULTS AND REMEDIES SECTION 6.01. EVENTS OF DEF AUL T. The following events shall each constitute an "Event of Default": (A) Default shall be made in the payment of the principal of or interest on any Bond when due. In determining whether a payment default has occurred, no effect shall be given to payment made under a Bond Insurance Policy. . (B) There shall occur the dissolution or liquidation of the Issuer, or the filing by the Issuer of a voluntary petition in bankruptcy, or the commission by the Issuer of any act of bankruptcy, or adjudication of the Issuer as bankrupt, or assignment by the Issuer for the benefit of its creditors, or appointment of a receiver for the Issuer, or the entry by the Issuer into an agreement of composition with its creditors, or the approval by a court of competent jurisdiction of a petition applicable to the Issuer in any proceeding for its reorganization instituted under the provisions of the Federal Bankruptcy Code, as amended, or under any similar act in any jurisdiction which may now be in effect or hereafter enacted. (C) The Issuer shall default in the due and punctual performance of any other of the covenants, conditions, agreements and provisions contained in the Bonds or in this Resolution on the part of the Issuer to be performed, and such default shall continue for a period of thirty (30) days after written notice of such default shall have been received from the Holders of not less than twenty-five percent (25%) of the aggregate principal amount of the Outstanding Bonds or any Insurer. Notwithstanding the foregoing, the Issuer shall not be deemed in default hereunder if such default can be cured within a reasonable period of time and if the ssuer in good faith institutes curative action and diligently pursues such action until the default has been corrected. SECTION 6.02. REMEDIES. Any Holder of the Bonds or any trustee or receiver acting for such Bondholders may either at law or in equity, by suit, action, mandamus or other proceedings in any court of competent jurisdiction, protect and enforce any and all rights under the laws of the State of Florida, or granted and contained in this Resolution., and may enforce and compel the performance of all duties required by this Resolution or by any applicable statutes to be performed by the Issuer or by any officer thereof; provided, however, that no Holder, Credit Facility Provider, trustee, receiver or other person shall have the right to declare the Bonds immediately due and payable. ".......' 36 "'-., The Holder or Holders of Bonds in an aggregate principal amount of not less than twenty-five per cent (25%) of the Bonds then Outstanding may by a duly executed certificate in writing appoint a trustee for Holders of Bonds issued pursuant to this Resolution with authority to represent such Bondholders in any legal proceedings for the enforcement and protection of the rights of such Bondholders and such certificate shall be executed by such Bondholders or their duly authorized attorneys or representatives, and shall be filed in the office of the Clerk. Notice of such appointment, together with evidence of the requisite signatures of the Holders of not less than twenty-five percent (25%) in aggregate principal amount of Bonds Outstanding and the trust instrument under which the trustee shall have agreed to serve shall be filed with the Issuer and the trustee and notice of appointment shall promptly be given to all Holders of Bonds by first class mail, postage prepaid. After the appointment of the first trustee hereu'nder, no further trustees may be appointed; however, the holders of a majority in aggregate principal amount of all the Bonds then Outstanding may remove the trustee initially appointed and appoint a successor and subsequent successors at any time. SECTION 6.03. DIRECTIONS TO RECEIVER AS TO REMEDIAL PROCEEDINGS. The Holders of a majority in principal amount of the Bonds then Outstanding (or the Credit Facility Provider for any Series of Outstanding Bonds) have the right, by an instrument or concurrent instruments in writing executed and delivered to any receiver, to direct the method and place of conducting all remedial proceedings to be taken by any receiver hereunder, provided that such direction shall not be otherwse than in accordance with law or the provisions hereof, and that the trustee shall have the right to decline to follow any such direction which in the opinion of such receiver would be unjustly prejudicial to Holders of Bonds not parties to such direction. SECTION 6.04. REMEDIES CUMULATIVE. No remedy herein conferred upon or reserved to the Bondholders is intended to be exclusive of any other remedy or remedies, and each and every such remedy shall be cumulative, and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity or by statute. SECTION 6.05. WAIVER OF DEFAVL T. No delay or omISSIon of any Bondholder to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver of any such default, or an acquiescence therein; and every power and remedy given by this Section 6.05 to the Bondholders may be exercised from time to time, and as often as may be deemed expedient. No Event of Default may be waived without the consent of each Credit Facility Provider, which has honored all its obligations under its Credit Facility. SECTION 6.06. APPLICATION OF MONEYS AFTER DEFAULT. If an Event of Default shall happen and shall not have been remedied, the Issuer or a trustee or "- 37 ',,-/' receiver appointed for the purpose shall ~\pply all Limited Ad Valorem Tax JS 10\/0\\5 and in the follo\ving order: (A) To the payment of the reasonable and proper charges. expenses and Jiabilities of the trustee or receiver, Registrar and Paying Agent hereunder: and (B) To the payment of the interest and principal then due on the Bonds (provided such payments are made in accordance with applicable law), as follows: (1) Unless the principal of all the Bonds shall have become 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, in the order of the maturity of such installments, and, if the amount availablt: 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 ~ntjtled thereto, without any discrimination or preference; and SECOND: to the payment to the Persons entitled thereto of the unpaid principal of any of the Bonds which shall have become due at maturity in the order of their due dates. \'vith interest upon such Bonds from the respective dates upon which they became due. 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 first of such interest. ratably according to the amount of such interest clue on such date, and then to the payment of such principal. ratably according to the amount of such principal due on such date, to the Persons entitled thereto without any discrimination or preference. (2) If the principal of all the Bonds shall have become due and payable, all such moneys shall be applied tirst. to payment of any unfunded rebatabk arbitrage, and second, to the payment of the principal and interest then due und unpaid upon the Bonds, with interest thereon as aforesaid. \vithout preference or priority of principal over interest or of interest over principal, or of any installment of interest ove r any other installment of interest. or of any Bond over any other Bond. ratably, according to the umounts due respectively for principal and interest. to the Persons entitled thereto v...ithout any discrimination or preference. SECTION 6.07. CONTROL BY CREDIT FACILITY PROVIDER. To the t:'\tent ~1 Credit Facility Provider makes any payment of princip.1i of or interest on Bonds in accordance with its Credit Facility, such Credit Facility Pro\ider shall become '-- 38 '-"....,< '-' subrogated to the rights of the recipients of such payments in accordance with the terms of its Credit Facility. Upon the occurrence and continuance of an Event of Default, a Credit Facility Pro\ider of a Series of Bonds, if such Credit Facility Provider shall not be in payment default under its Credit Facility, shall be deemed to be the sole owner of such Bonds for purposes of (A) directing and controlling the enforcement of all rights and remedies with respect to such Series of Bonds, including any waiver of an Event of Default and removal of any trustee, and (B) exercising any voting right or privilege or giving any consent or direction or taking any other action that the Holders of such Bonds are entitled to take pursuant to this Article VI hereof. No provision expressly recognizing or granting rights in or to a Credit Facility Provider shall be modified without the consent of such Credit Facility Provider. A Credit Facility Provider's rights under this Section 6.07 shall be suspended during any period in which such Credit Facility Provider is in default in its payment obligations under its Credit Facility (except to the extent of amounts previously paid by such Credit Facility Provider and due and owing to such Credit Facility Provider) and shall be of no force or effect if its Credit Facility is no ionger in effect or if the Credit Facility Provider asserts that its Credit Facility is not in effect or if the Credit Facility Provider waives such rights in writing. The rights granted to a Credit Facility Provider under this Section 6.07 are granted in consideration of such Credit Facility Provider issuing its Credit Facility. The Issuer shall provide each Credit Facility Provider immediate notice of any Event of Default described in Section 6.01 (A) hereof and notice of any other Event of Default occurring hereunder within five days of the occurrence thereof. Each Credit Facility Provider of any Bonds hereunder shall be considered a third- party beneficiary to this Resolution with respect to such Bonds. [Remainder of page intentionally left blank] 39 '-.. ARTICLE VII SUPPLEMENTAL RESOLUTIONS SECTION 7.01. SVPPLEJ\.lENTAL RESOLUTION WITHOUT BONDHOLDERS' CONSENT. The Issuer, from time to time and 3t any time. may adopt such Supplemental Resolutions without the consent of the Bondholders (which Supplemental Resolution shall thereafter form a part hereot) for any' of the following purposes: (A) To cure any ambiguity or formal defect or 0l111SSJOn or to correct any inconsistent provisions in this Resolution or to clarify any matters or questions arising hereunder. (B) To grant to or confer upon the Bondholders any additional rights, remedies. povvers, authority or security that may lawfully be granted \0 or conferred upon the Bondholders. (C) To add to the conditions. limitations and restrictions on the issuance of Bonds under the provisions of this Resolution other conditions, limitations and restrictions thereafter to be observed. (D) To add to the covenants and agreements of the Issuer in this Resolution other covenants and 3greements thereafter to be observed by the Issuer or to surrender any right or power herein reserved to or conferred upon the Issuer. (E) To specify and determine any matters an~ things relative to such Bonds which are not contrary' to or inconsistent \vith this ResolutIon as theretofore in effect. or to amend, modify or rescind any SLlch authorization. specification or determination at any time prior to the first delivery of such Bonds. (F) To specify and determine the matters and things referred to in Sections 2.01, 2.02, 2.10 or 5.01 hereof. and also any other n"l1ttcrs Jnd things relative to such Bonds \vhich are not contrary to or inconsistent with this Resolution as theretofore in effect. or to amend. modify or rescind any such authorization, specification or determination at uny time prior to the first delivery of such Bonds. (G) To authorize Additional Bonds or Projects. (I-f) To make any other change that. in {he opinion of the 1sS\.ler. \vouid nOt materiillly adversely affect the security for the Bonds. ,_/ -f0 '"'-, SECTION 7.02. SUPPLEMENTAL RESOLUTION \VITH BONDHOLDERS' AND CREDIT FACILITY PROVIDER'S CONSENT. Subject to the terms and pro\"isions contained in this Section 7,02 and Sections 7.0 I and 7.03 hereof, the Holder or Holders of not less than a majority in aggregate principal amount of the Bonds then Outstanding shall have the right, from time to time, anything contained in this Resolution to the contrary notwithstanding, to consent to and approve the adoption of such Supplemental Resolution or Resolutions hereto as shall be deemed necessary or desirable by the Issuer for the purpose of supplementing, modifying, altering, amending, adding to or rescinding, in any particular, any of the terms or provisions contained in this Resolution; provided, however, that if such modification or amendment will, by its terms, not take effect so long as any Bonds of any maturity remain Outstanding, the consent of the Holders of such Bonds shall not be required and such Bonds shall not be deemed to be Outstanding for the purpose of any calculation of Outstanding Bonds under this Section 7.02. Any Supplemental Resolution which is adopted in accordance with the provisions of this Section 7.02 shall also require the written consent of the Insurer. No Supplemental Resolution may be approved or adopted which shall permit or require (A) an extension of the maturity of the principal of or the payment of the interest on any Bond issued hereunder, (B) reduction in the principal amount of any Bond or the rate of interest thereon, (C) the creation of a lien upon or a pledge of the Limited Ad Valorem Tax other than the lien and pledge created by this Resolution or as otherwise permitted hereby, (D) a preference or priority of any Bond or Bonds over any other Bond or Bonds, or (E) a reduction in the aggregate principal amount of the Bonds required for consent to such Supplemental Resolution. Nothing herein contained, however, shall be construed as making necessary the approval by Bondholders or a Credit Facility Provider of the adoption of any Supplemental Resolution as authorized io Section 7.01 hereof. If at any time the Issuer shall determine that it is necessary or desirable to adopt any Supplemental Resolution pursuant to this Section 7.02, the Clerk shall cause the Registrar to give notice of the proposed adoption of such Supplemental Resolution and the form of consent to stich adoption to be mailed, postage prepaid, to all Bondholders at their addresses as they appear on the registration books and to all Insurers of Bonds Outstanding. Such notice shall briefly set forth the nature of the proposed Supplemental Resolution and shall state that copies thereof are on file at the offices of the Clerk and the Registrar for inspection by all Bondholders. The Issuer shall oot, however, be subject to any liability to any Bondholder by reason of its failure to cause the notice required by this Section 7.02 to be mailed and any such failure shall not affect the validity of such Supplemental Resolution \vhen consented to and approved as provided in this Section 7.02. Wheneyer the Issuer shall deliver to the Clerk an instrument or instruments in writing purporting to be ~\ecuted by the Holders of not less than a majority in aggregate '...-' 41 ~ principal amollnt of the Bonds then Oursranding, which insrrument or instruments shall refer to the proposed Supplemental Resolution described in such notice and shull specifically consent to and approve the adoption thereof in subsrJn[]ally the form of the copy thereof referred to in such notice, thereupon, but not otherwise. the Issuer may adopt such Supplemental Resolution in substantially such form. \.vithout liability or responsibility to any Holder of any Bond, \vhether or not such Holder shall have consented thereto. If the Holders of not less than a majority in aggregate principal amount of the Bonds Outstanding at the time of the adoption of such Supplemental Resolution shall have consented to and approved the adoption thereof as herein provided, no Holder of any Bond shall have any right to object to the adoption of such Supplemental Resolution. or 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 adoption thereof. or to enjoin or restrain the Issuer from adopting the same or from taking any action pursuant to the provisions thereof. Upon the adoption of any Supplemental Resolution pursuJl1t to the provisions of this Section 7.02, this Resolution shall be deemed to be modified and amended in accordance therewith, and the respective rights, duties and obligations under this R~solutJon of the Issuer Jnd all I-blders of Bonds then Outs!:1llding shall thereafter be determined. exercised and enforced in all respects under the provisions of this Resolution as so modified and amended. SECTION 7.03. AMENDMENT WITH CONSENT OF CREDIT FACILITY PROVIDER ONLY. For purposes of amending this Resolution pursuant to Section 7.02 hereof. a Credit Facility Provider of a Series of Bonds shall be considered {he Holder thereof, provided such Series of Bonds, at the time of the adoption of the amendment, shall be rated by the rating agencies which shall have rated the Bonds no lower than the initial ratings <1ssigned thereto by such rating ::1gencies. The consent of the I-{olders of Bonds shall not be required if the Credit Facility Provider shall consent to the amendment as provided by this Section 7.03. The fore~()lI1g right of amendment. hO\.vc\'er, does not apply to any amendment to Section 5.04 hereof with respect to the exclusion of interest on the Bonds from gross income for purposes of federal income taxation or the amendments described in the penultimate sentence of the first paragraph of Section 7.02 hereof. Prior to adoption of any amendment made pursuant to this Section 7.03. notice of such amendment shall be delivered to the rating agencies rating the Bonds. Upon filing with the Clerk of evidence of such consent of ,\ Credit Facility Provider <1S aforesaid, the Issuer may adopt sllch Supplemental Resollltil1!l. A.fter the adoption by the Issuer of such Supplemental Resolution, notice thereof s!ull be mailed in the same lTIanner as notice of an omendment under Section 7.02 h\:"ILL~!' '-- ,n "-.. ARTICLE VIII PROVISIONS RELATING TO THE BOND INSURANCE POLICY AND INSURER FOR THE SERIES 200SA BONDS SECTION 8.01 MUNICIPAL BOND INSURANCE. Subject in all respects to the award of the Series 2005A Bonds in accordance with this Resolution and the Official Notice of Sale, the Issuer hereby authorizes the payment of the principal of and interest on the Series 2005A Bonds to be insured pursuant to the Bond Insurance Policy issued by Ambac Assurance Corporation ("Ambac Assurance" or the "Insurer"). The Chair is hereby authorized to execute such documents and instruments necessary to cause Ambac Assurance to insure the Series 2005A Bonds. Ambac Assurance shall be deemed to be an Insurer and a Credit Facility Provider pursuant to this Resolution. SECTION 8.02. PROVISIONS RELATING TO BOND INSURANCE POLICY. (A) The commitment from Ambac Assurance to issue its Bond Insurance Policy with respect to the Series 2005A Bonds is hereby approved and authorized and payment for the premium for such insurance is hereby authorized from proceeds of the Series 2005A Bonds. A statement of insurance is hereby authorized to be printed on or attached to the Series 2005/\ Bonds for the benefit and information of the Bondholders of the Series 200SA Bonds. (B) Subject in all respects to the award of the Series 2005A Bonds in accordance with this Resolution and the Official Notice of Sale, so long as the Bond Insurance Policy issued by Ambac Assurance is in full force and effect and Ambac Assurance has not defaulted in its payment obligations under the Bond Insurance Policy, the Issuer agrees to comply with the following provisions: (I) Notices to be !liven to Ambac Assurance. The Issuer or the Paying Agent shall furnish to Ambac Assurance, upon request (to the attention of the Surveillance Department unless otherwise indicated), the following: (a) as soon as practicable after the filing thereof, a copy of any tinancial statement of the Issuer and a copy of any audit and annual report of the Issuer; (b) a copy of any notice to be given to the registered owners of the Series 2005A Bonds, including, without limitation, notice of any redemption ot or defeasance of Series 2005/\ Bonds, and any certificate rendered pursuant to this Resolution relating to the security for the Series 2005A Bonds: '----" 43 "-"" (c) To the extent that the lssuer has entered into a continuing disclosure agreement with respect to the Series 2005/\ Bonds. Ambac Assurance shall be included as party to be notified; and (d) such additional information Ambac Assurance ma\ reasonably request. The Paying Agent or Issuer shall notify Ambac Assurance (to the attention of the General Counsel Office) of any failure of the Issuer to provide Jny relevant notices, certificates, etc. The Issuer will permit Ambac Assurance to discllss the affairs, finances and accounts of the Issuer or any information Amb~c Assurance may reasonably request regarding the security for the Series 2005.'-\ Bonds with appropriate officers of the Issuer. The Paying Agent or Issuer will permit Ambac Assurance to have access to and to make copies of all books and records relating to the Series 2005A Bonds at any reasonable time. Notwithstanding any other provision of this Resolution, the Issuer shall immediately notify Ambac Assurance (to the attention of the General Counsel Office) jf at any time there are insufficient moneys to make Jny payments of principal and/or interest <IS required and immediately upon the occurrence of any event of default under this Resolution. (2) Payment Procedure Pursuant to Bond Insurance Policv. As long as the Bond Insurance Policy shall be in full torc~ and effect the Issuer and the Paying Agent agree to comply with the following provisions: (a) at least one (J) day prior to Llll Interest Dates the Paying Agent or the Issuer will determine whether there will be sufficient funds in the funds and accounts estJblished under this Resolution to pay the principal of or interest on the Senes 2005A Bonds 011 such Interest Date. If the Paying Agent or the lssuer determines that there \vill be insufficient funds in slIch funds or accounts. the Paying .Agent or the Issuer shall so notit)r AmbLlc Assurance. Such notice sh~lll specify the amount of the anticipated deficiency. the Series 2005A Bonds to which such deficiency is applicable and whether such Series 2005A Bonds will be deficient as to principal or interest. or both. If the Paying !\.gent or tbe Issuer has not so notified Ambac Assurance at least one (I) day rrior to an Interest Date. Ambac Assurance will make payments of lTincipal or interest due on the Series :2005A Bonds on or before the tirst \. i 51) day next following the date '-...-- 44 '-...-- on which Ambac Assurance shall have received notice of nonpayment from the Paying Agent or' the Issuer. (b) the Registrar or the Paying Agent shall, after notice has been given to Ambac Assurance as provided in (2)(a) above, make available to Ambac Assurance and, at Ambac Assurance's direction, to The Bank of New York, in New York, New York, as insurance trustee for Ambac Assurance or any successor insurance trustee (the "Insurance Trustee"), the registration books of the Issuer maintained by the Registrar and all records relating to the funds and accounts maintained under this Resolution. (c) the Paying Agent or the Registrar shall provide Ambac Assurance and the Insurance Trustee with a list of registered owners of Series 2005A Bonds entitled to receive principal or interest payments from Ambac Assurance under the terms of the Bond Insurance Policy, and shall make arrangements with the Insurance Trustee (i) to mail checks or drafts to the registered owners of the Series 2005A Bonds entitled to receive full or partial interest payments from Ambac Assurance and (ii) to pay principal upon the Series 2005A Bonds surrendered to the Insurance Trustee by the registered owners of the Series 2005A Bonds entitied to receive full or partial principal payments from Ambac Assurance. (d) the Paying Agent or Registrar shall, at the time it provides notice to Ambac Assurance pursuant to (2)(a) above, notify registered owners of Series 200SA Bonds entitled to receive the payment of principal or interest thereon from Ambac Assurance (i) as to the fact of such entitlement, (ii) that Amhac Assurance will remit to them all or a part of the interest payments next coming due upon proof of Series 2005A Bondholder entitlement to interest payments and delivery to the Insurance Trustee, in form satisfactory to the Insurance Trustee, of an appropriate assignment of the registered owner's right to payment, (iii) that should they be ernitled to receive full payment of principal from Ambac Assurance, they must surrender their Series 2005A Bonds (along with an appropriate instrument of assignment in form satisfactory to the Insurance Trustee to permit ownership of such Series 2005A Bonds to be registered in the name of Ambac Assurance) for payment to the Insurance Trustee, and not the Paying Agent. and (iv) that should they be entitled to receive partial payment of principal from Ambac Assurance they must surrender their Series 2005A Bonds for payment thereon first to the Paying Agent who shall note on Stich Series 2005A Bonds the portion of the principal paid by the Pa; ing Agent and then, along with an appropriate instrument of .'-.,..-. 45 '--- assignment in form satisfactory to the Insura.nce Trustee, to the Insurance Trustee, \vhich will then pay the unpaid portion of principal. (e) in the e\ent that the PaYll1g Agent bas notice that an: payment of principal of or interest on a Series 2005A Bond \vhich has become due for payment and which is made to a Series 200SA Bondholder by or .on behalf of the Issuer has been deemed a preferential transfer and theretofore recovered from its registered owner pursuant to the United States Bankruptcy Code by a trustee in bankruptcy in accordance with the final, nonappealable crder of a court having competent jurisdiction, the Paying .Agent shall, at the time Ambac Assurance is notified pursuant to (a) above, notify all registered owners that in the event that any registered owner's payment is so recovered, such registered owner will be entitled to payment from Ambac Assurance to the extent of such recovery if sufficient funds are not otherwise available, and the Paying Agent shall furnish to Ambac Assurance its records evidencing the payments of principal of and interest on the Series 2005A Bonds \.vhich have been made by the Paying Agent and subsequently recovered from registered owners and the dates on which such payments were made. (0 in addition to those rights granted Ambac Assurance under this ResolutIOn, Ambac Assurance shall, to the ex-tent it makes payment of principal of or interest on Series 2005A Bonds. become subrogated to the rights of the recipients of such payments in accordance with the terms of the Bond Insurance Policy, and to evidence such subrogation (i) in the case of subrogation as to claims for past due interest the Registrar shall note Ambac Assurance's rights as subrogee on the registration books of the Issuer maintained by the Registrar upon receipt from /\mbac A.ssurance of proof of the payment of interest Ulereon to the registered owners of the Series 2005A Bonds. and (ii) in the case of subrogation as to claims for past due principaL the Registr:lr shall note Amb.1c Assurance's rights as subrogee on the registration books of the Issuer maintained by the Regi strar upon surrender of the Series 2005A Bonds by the registered owners thereof together with proof of the payment of principal thereof. (3) Consent of Ambac Assurance. Any pro\ iSlOn of this Resolution expressly recognizing or granting rights in or to Ambac Assurance may not be amended in any manner which JtTects the rights of A.mbac Assurance hereunder without the prior written consent of Amb:lc ASSllr::lllCC. Ambac Assurance reserves the right to charge the Issuer a fee for any consent or amendment to this Resolution while the Bond InsurJ!lce Policy !s outstanding. "'---' .+6 .. '-.-' (4) Consent of Ambac Assurance in Addition to Bondholder's Consent. Unless otherwise provided in this Section, Ambac Assurance's consent shall be required in addition to Series 2005A Bondholder consent when Series 2005A Bondholder consent is required for the following purposes: (a) execution and delivery of any Supplemental Resolution; (b) removal of the Paying Agent and selection and appointment of any successor trustee or paying agent; and (c) initiation or approval of any action not described in (a) or (b) above which requires consent of the Series 2005A Bondholders. (5) Consent of Ambac Assurance in the Event of Insolvency. Any reorganization or liquidation plan with respect to the Issuer must be acceptable to Ambac Assurance. In the event of any reorganization or liquidation, Ambac Assurance shall have the right to vote on behalf of all Holders of Series 2005A Bonds absent a default by Ambac Assurance under the Bond Insurance Policy. (6) Consent of Ambac Assurance Upon Default. Anything in this Resolution to the contrary notwithstanding, upon the occurrence and continuance of an event of default as described in this Resolution, Ambac Assurance shall be entitled to control and direct the enforcement of all rights and remedies granted to the Series 2005A Bondholders or the Paying Agent for the benefit of the Series 2005A Bondholders under this Resolution. (7) Provisions Concerning the Paying Agent. (a) The Paying Agent may be removed at any time, at the request of Ambac Assurance, for any breach of the trust set forth herein. (b) Ambac AssurCll1ce shall receive prior written notice of any Paying Agent resignation or removal. (c) Every successor Paying Agent appointed pursuant to this Resolution shall be a trust company or bank in good standing located in or incorporated under the laws of the State, duly authorized to exercise trust powers and subject to examination by federal or state authority, having a reported capital and surplus of not less than $75,000,000 and acceptable to Ambac Assurance. (d) Notwithstanding any other provision of this Resolution, in determining whether the rights of the Series 2005A Bondholders will be adversely affected by any action taken pursuant to the terms and provisions of this Resolution, the Paying Agent shall consider the effect on the Series 2005/\ Bondholders as if there were no Bond Insurance Policy. '''--' 47 '--' ARTICLE IX DEFEASANCE SECTION 9.01. DEFEASANCE. If (A) the Issner shall payor cause to be paid or there shall othenvise be paid to the Holders of any Series of Bonds the principai and interest or Redemption Price due or to become due thereon, or the times and in the manner stipulated therein and in this Resolution.. and (ii) the Issuer shall pay all amounts owinn to any Credit Facility Provider issuing a Credit Facility with respect to such Series ::> - , of Bonds. and all covenants, agreements and other obligations of the Issuer to the holders of such Series of Bonds, shall thereupon cease, terminate and become void and be discharged and satisfied. In such event, the Paying Agents shall pay over or deliver to the Issuer all money or securities held by them pursuant to this Resolution which are not required for payment or redemption of any Series of Bonds not theretofore surrendered for SLlch payment or redemption. Any Bonds or interest installments appertaining thereto shall be deemed to have been paid within the meaning of this Section 9.0 I if there .shal] han:: been deposited in irrevocable trust with a banking institution or trust company by or on behalf of the Issuer either moneys in an amount which shall be sufficient. or Federal Securities verified by an Independent certified public accountant [0 be in such amount that the principal of and the interest on or redemption price which \\hen due will provide moneys which, together with the moneys, if any, deposited with sLlch banking institution or trust company at the same time shall be sufficient, to pay the principal of and interest due and to become due on said Bonds on and prior to the maturity date thereof. Except as hereafter provided, neither the Federal Securities nor any moneys so deposited with such banking institution or trust company nor any moneys recei \'cd by such bank or trust company on account of principal of or redemption price. if applicable, or interest 011 said Federal Securities shall be withdrawn or used for any purpose other than, and all such moneys shall be held in trust for and be applied to. the payment. when due. of the principJI of or redemption price of the Bonds for the payment of which they were deposited and the interest accruing thereon 10 the date of maturity; provided. however. the Issuer l11<lY substitute new Federal Securities and moneys for the deposited FederJl Securities Jnd moneys if the new Federal Securities and moneys are sufficient to pay the principal of and interest on or redemption price of the refunded Bonds. For purposes of determining \\hether Variable RZlte Bonds shall be deemed to have been paid prior to the maturity or the redemption date thereof. as the case may be, by the deposit of moneys, or speCIfied Federal Securities ;,1110 moneys, if any. in :lCcordance with this Section 9.01. the interest to come due on sdch '/ariabk Rate Bonds on 'JI' prior to the maturity or redemption date thereof. ,1S the case may be. shall be '-.-. 49 '- calculated at the Maximum Interest Rate; provi.ded, however, that if on any date, as a result of such Variable Rate Bonds roving borne interest at less than the Maximum Interest Rate for any period, the total amount of moneys and specified Federal Securities on deposit for the payment of interest on such Variable Rate Bonds is in excess of the total amount which would have been required to be deposited on such date in respect of such Variable Rate Bonds in order to satisfy this Section 9.0 I, such excess shall be paid to the lssuer free and clear of any trust, lien, pledge or assignment securing the Bonds or otherwise existing under this Resolution. If Bonds are not to be redeemed or paid within 60 days after any such defeasance described in this Section 9.01, the Issuer shall cause the Registrar to mail a notice to the Holders of such Bonds that the deposit required by this Section 9.01 of moneys or Federal Securities has been made and said Bonds are deemed to be paid in accordance with the provisions of this Section 9.01 and stating such maturity date upon which moneys are to be available for the payment of the principal of and interest on or redemption price of said Bonds. Failure to provide said notice shall not affect the Bonds being deemed to have been paid in accordance with the provisions of this Section 9.01. Notwithstanding anything herein to the contrary, in the event that the principal of or interest due on the Bonds shall be paid by a Credit Facility Provider, such Bonds shall remain Outstanding, shall not be defeased or otherwise satisfied and shall not be considered paid by the Issuer, and the pledge of the Limited Ad Valorem Tax and all covenants, agreements and other obligations of the Issuer to the Bondholders shall continue to exist and Credit Facility Provider shall be subrogated to the rights of such Bondholders. [Remainder of page intentionally left blank] '-- 50 '-- ARTICLE X PROVISIONS RELATING TO SERIES 2005A BONDS SECTION 10.01. OFFICIAL NOTICE OF SALE. The form of the Official Notice of Sale attached hereto as Exhibit 8 and the terms and provisions thereof are hereby authorized and approved. The Chair is hereby authoriz~d to make such changes. insertions and modifications as he or she shall deem necessary prior to the advertisement of such Official Notice of Sale or a summary thereof. The Chair is hereby authorized 10 advertIse and publish the Official Notice of Sale or a summary thereof Clt such time as he or she shall deem necessary and appropriate, upon the advice of the Financial Advisor. to accomplish the competitive sale of the Series 2005A Bonds in accordance with applicable law. SECTION 10.02. PI~ELIMINARY OFFICIAL STATEMENT; OFFICIAL ST A TEMENT. (A) The Issuer hereby authorizes the distribution and use of the Preliminary Official Statement in substantially the form attached hereto as Exhibit C in connection with the offering of the Series 2005A Bonds for sale. If between the date hereof and the mailing of the Preliminary Official Statement, it is necessary to make insertions, modifications or changes in the Preliminary Official Statement, the Chair is hereby authorized to approve such insertions. changes and modifications. The Chair is hereby authorized to deem the Preliminary Official Statement "final" within the meaning of Rule 15c2-12(b)( I) under the Securities Exchange Act of 1934 in the form as mailed. Execution of a certificate by the Chair deeming the Preliminary Official Statement "final" as described above shall be conclusive evidence of the approval of any insertions. changes or modifications. (8) The form. terms and provisions of the Offici::d Statement relating to the Series 2005A Bonds shall be substanticdly as set fonh in the Preliminary Official Statement and shall include atl of the specific financial terms of the Series 2005A Bonds. Subject in all respects to the award of the S~ries ~005A Bonds in accordance v,:ith this Resolution and the Official Notice of Sale. the Chair is hereby authorized and directed to execute and deliver said Ofticial Statement in the name and on behalf of the Issuer. and thereupon to calise such Official Statement to be delivered [0 the winning bidder with such changes, amendments. modifications. omissions and additions as may be approved by the Chair. Said Official Statement, including any slIch changes. amendments. modifications, omissions and additions as approved by the Chair and the information contained therein are hereby authorized to be used in connection with the sale of the Series 2005A Bonds to the public. Execution by the Chair of th~ OfticiaJ Statement shall be deemed to be conclusive evidence of approval of such chal1~es '-- 51 '- SECTION 10.03. APPOINTMENT OF PAYING AGENT AND REG ISTRAR. Subject in all respects to the award of the Series 2005A Bonds in accordance with this Resolution and the Official Notice of Sale, U.S. Bank National Association, Fort Lauderdale, Florida, is hereby designated Registrar and Paying Agent for the Series 2005A Bonds. The Chair and/or the Clerk are hereby authorized to enter into any agreement which may be necessary to effect the transactions contemplated by this Section 10.03 and by this Resolution. SECTION 10.04. SECONDARY MARKET DISCLOSURE. Subject in all respects to the award of the Series 2005A Bonds in accordance with this Resolution and the Official Notice of Sale, the Issuer hereby covenants and agrees that, in order to provide for compliance by the Issuer wjth the secondary market disclosure requirements of the Rule, it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate {O be executed by the Issuer and dated the dated date of the Series 2005A Bonds, as it may be amended from time to time in a::cordance with the terms thereof. The Continuing Disclosure Certificate shall be substantially in the form of Exhibit D hereto with SLlch changes, amendments, modifications, omissions and additions as shall be approved by the Chair who is hereby authorized to execute and deliver such Certificate. Notwithstanding any other provision of this Resolution, failure of the Issuer to comply with such Continuing Disclosure Certificate shall not be considered an Event of Default under this Resolution; provided, however, to the extent permitted by law, the sole and exclusive remedy of any Series 2005A Bondholder for the enforcement of the provisions of the Continuing Disclosure Certificate shall be an action for mandamus or specific performance. as applicable, by court order, to cause the Issuer to comply with its obligations under this Section 10.04 and the Continuing Disclosure Certificate. For purposes of this Section 10.04, "Series 2005A Bondholder" shall mean any person who (A) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Series 2005A Bonds (including persons holding such Bonds through nominees, depositories or other intermediaries), or (B) is treated as the owner of any such Bond for federal income tax purposes. 52 ARTICLE XI MISCELLANEOUS SECTION 11.0 1. CAPITAL :\PPRECIA lION BONDS. For the purposes of \Ai receiving payment of the Redemption Price if a Capital Appreciation Bond is redeemed prior to maturity: or (B) recei\'ing payment of a Capital Appreciation Bond if the principal of all Bonds becomes due and payable under the provisions of this Resolution, or (C) computing the amount of Bonds held by the Holder of a Capital Appreciation Bond in giving to the Issuer or any trustee or receiver appointed to represent the Bondholders any notice, consent, request or demand pursuant to this Resolurion for any purpose whatsoever, the principal amount of a Capital Appreciation Bond shall be deemed to be its Accreted Value. SECTION 11.02. SALE OF BONDS. The Bonds shail be issued and sold at public or private sale at one time or in installments from time to time and at such price or prices as shall be consistent with the provisions of the Act. the requirements of this Resolution and other applicable provisions of law. SECTION 11.03. GENERAL AUTHORITY. The members of the Board and the officers. attorneys and other agents l)r employees of the Issu-.:r are he:-eby authorized to do all acts and things required of thel11 by this Resolution or (he Bond Insurance Policy or which are desirable or consistent with the requirements of this Resolution or the Bond Insurance Policy for the full punctual and complete performance of all the terms. covenants and agreements contained herein or in the Bonds and this Resolution. including the execution of any docllments or instruments relating to insuring payment of the Bonds, and each member. employee. attorney and officer of the Issuer or the Issuer are hereby authorized and directed to execute and deliver any and all papers and instruments and to be and cause to be done any and Zlll acts and things necessary or proper for carrying out the transactions contemplated hereunder. If the Chair is unavailable or unable at any time to perform any duties or functions hereunder. the Vice- Chair is hereby authorized and directed to act on his or h~r behalf SECTION 11.04. SEVERABILITY OF INVALID PROVISIONS. If any one or more of the covenants. agreemems or provisions of this Resolution shall be held contrary to any express provision of la\\ or contrary to the policy of express law, though not expressly prohibited, or against public policy, or sh:111 for any reason whatsoever be held invalid, then such co\'enants, agreements or provisions shall be null and void and shall be deemed separable from (he rCI11::lining co\'enants. agreements and provisions of this Resolution and shall in no way at'fcct the validity \)f any of \he other covenants. agreements or provisions hereof or of the Bonds issued hereunder ~.......-_.... 53 '----' SECTION 11.05. REPEAL OF INCONSISTENT RESOLUTIONS. All ordinances, resolutions or parts thereof in conflict herewith are hereby superseded and repealed to the extent of such conflict. SECTION 11.06. EFFECTIVE DATE. This Resolution shall take effect immediately upon its enactment in accordance with law. DUL Y ADOPTED, in Regular Session this 141h day of December, 2004. (SEAL) COLLIER COUNTY, FLORIDA ~~d~ Chair By: A TrEST: ... '..~'l:~:::' ~ ~:.:J/;;")~~~, , ) ,\ ".,;;-."- , , ~r (kw ~j.~~~D(. {Jerk .' I '-.:' :f': . . ~"Vf."~"';: ' .~-- .' ~".'. # ~.. ' ' ., . . - " C''t','~,' ',' ,"",. ';!".':, ""'.,. 'J _' ~~ ~~~'tl~~~.>.j.' _:j-' Approved as to Form and Legal Sufficiency: I '.. j-" '. ,-' County Attorney State of FLOJltIOA County of COLLIER - -.;..............-.r ..,..-...- :-'"';r.;;~;t~ "\.,,\~ I HEREBY CERTIFY THAT thIs rs . true and correct copy of a document en file in Board Minutes andR~cords of CoWer CounlJ I~--\WESS m. y ~~.~nd'Ofti9.ia.1 seal this : day~', /~~I aoot- ',z..:..~ /~..\.,,</r!/)'..~':: . DWIGHt.E~ BROCK~Ct~~K OFCOU RTS .~~ ~)t .... D.C. , '.' i:~, ..t ...... ; .~ .'. .~:.. 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VlVlVlVl ~ "" Vl '0 Vi III ClI 1:> C tll '" ClI ~ '" --' ~ E !!! ~ "0 c - g III ~ ~~ III III 1:>"0 a:: a:: 4J ll> 010'1 '0"0 ,Ea:cr '0 4J Q) ~.~ S ...lQ.Q. ~-g -g ::l tll '" o C c u'" '" og'g ...l-' W _ Z Q) Q) ~ ~ ~ E U U ,..,~~ ;: Z Z '0 Vi tll 4J 1:> C '" III 4J ~ I1l --' ~ E !!! ~ -c 00 ~5 ~~ "ONCC 0000 0000 0000 CCNc:QD ""''''''00 O'l"'~ mMOlcn ..- (""') ('P') ("") oococo OOM~ '" C' ." I W -0 '" .r::. Vi t.g ::l llJ .= ~ .r::. o"2~ .f;. c c IlJ ~ - ~~~ ;;; o I- III III 'i: ., c. E 0.. Vi III :> U ..:: >. ~;;;~ .91~ g :I~~ N ,.,..,.", ~--- EXHIBIT B FORM OF OFFICIAL NOTICE OF SALE Not Included in this Transcript EXHIBIT C FORM. OF PRELIMINARY OFFICIAL ST A TEM ENT Not Included in this Transcript EXHIBIT D ---- FORM OF FORM OF CONTINUING DISCLOSURE CERTIFICATE Not Included in this Transcript _.- -- EXHIBIT E GENERAL DESCRlPTION OF THE PRIOR PROJECT The Prior Project generally included the acquisition of certain real property within the County, collectively known as America's Business Park, as more particularly described in the plans and specifications on file with the Issuer. The Tax Identification Numbers for the parcels are 00143120009, 00144200009, 00144800001, 0014484003, 00144880005,00145000004,00144920004, 00144440005,00145480006,00144640009, 00145681009 and 00145680204. -' ~-- RESOLUTION NO. 2008 - 337 A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, SUPPLEMENTING RESOLUTION NO. 2004-383, WHICH RESOLUTION NO. 2004-383 AUTHORIZED, AMONG OTHER THINGS, THE ISSUANCE FROM TIME TO TIME OF COLLIER COUNTY, FLORIDA LIMITED GENERAL OBLIGA TION BONDS (CONSERVATION COLLIER PROGRAM) TO FINANCE THE ACQUISITION OF ENVIRONMENT ALL Y SENSITIVE LAND; ACCEPTING THE PROPOSAL OF SUNTRUST EQUIPMENT FINANCE & LEASING CORP. TO PROVIDE THE COUNTY WITH A LOAN TO FINANCE THE ACQUISITION OF CERTAIN ENVIRONMENT ALL Y SENSITIVE LAND; AUTHORIZING THE ISSUANCE OF THE COLLIER COUNTY, FLORIDA LIMITED GENERAL OBLIGATION BOND (CONSERVATION COLLIER PROGRAM), SERIES 2008 IN AN AGGREGATE PRINCIPAL AMOUNT OF NOT EXCEEDING $2 I ,000,000 TO SUNTRUST EQUIPMENT FINANCE & LEASING CORP. IN ORDER TO EVIDENCE SUCH LOAN; AUTHORIZING SUCH BOND TO BE PAYABLE FROM AD VALOREM TAXA TION LEVIED IN AN AMOUNT NOT TO EXCEED ONE-QUARTER OF ONE MILL ON ALL TAXABLE PROPERTY WITHIN THE COUNTY; MAKING CERTAIN COVENANTS AND AGREEMENTS WITH RESPECT TO SAID BOND; DELEGATING CERTAIN AUTHORITY TO THE CHAIRMAN AND OTHER OFFICERS OF THE COUNTY; APPOINTING THE COUNTY AS PA YING AGENT AND REGISTRAR FOR SAID BOND; AUTHORIZING THE EXECUTION AND DELIVERY OF OTHER DOCUMENTS IN CONNECTION THEREWITH; AND PROVIDING AN EFFECTIVE DATE. BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA: SECTION 1. FINDINGS. It is hereby found and determined that: '--.....' (A) Pursuant to the Resolution No. 2002-265, adopted by the Board of County Commissioners (the "Board") of Collier County, Florida (the "Issuer") on June 11, 2002, '........... the Issuer ordered the holding of a bond referendum election to determine if the qualified electors of the Issuer would approve the issuance of not exceeding $75,000,000 aggregate principal amount of limited general obligation bonds payable from ad valorem tax to be levied in an amount not to exceed one-quarter (1/4) of one mill on all taxable property within the Issuer for the principal purpose of financing the acquisition of certain environmentally sensitive land within the Issuer in order to protect water resources, wildlife habitat and public open space suitable for resource based recreation. (B) On November 5, 2002, a bond referendum election was held and the issuance of not exceeding $75,000,000 principal amount of limited general obligation bonds payable from an ad valorem tax levied on all taxable property within the Issuer in an amount not to exceed one-quarter (1/4) of one mill was approved by a majority of the qualified electors of the Issuer voting in said referendum election. (C) On December 14, 2004, the Board duly adopted Resolution No. 2004-383 (as supplemented hereby, the "Resolution"), which Resolution authorized, among other things, the issuance of Collier County, Florida Limited General Obligation Bonds (Conservation Collier Program), Series 2005A (the "Series 2005A Bonds"), which Series 2005A Bonds were issued in the aggregate principal amount of $32,815,000 for the principal purpose of financing the acquisition of certain environmentally sensitive land within the Issuer. (D) The Issuer hereby determines that it is in the best interests of the citizens and consistent with the goals and purposes of "Conservation Collier" as described in the Referendum Resolution to acquire certain additional environmentally sensitive land (the "2008 Project"), as generally described in Exhibit A attached hereto, and as more particularly described in the plans and specifications related thereto which are on file with the Issuer. (E) SunTrust Equipment Finance & Leasing Corp. (the "Initial Purchaser") has submitted a proposal to provide the Issuer with a loan to finance costs of the 2008 Project, which proposal is attached hereto as Exhibit B. (F) The Resolution provides for the issuance of Additional Bonds (as defined in the Resolution) on parity with the outstanding Series 2005A Bonds for the purposes of acquiring the 2008 Project upon meeting the requirements set forth herein and in the Resolution. (G) The Issuer deems it to be in its best interest to accept the proposal of the Initial Purchaser and to issue its Collier County, Florida Limited General Obligation Bond (Conservation Collier Program), Series 2008 (the "Series 2008 Bond") to the Initial Purchaser for the principal purpose of financing the costs of the acquisition of the 2008 '-..... 2 "'- / Project. The Series 2008 Bond shall be issued on parity in all respects with the Series 2005A Bonds pursuant to the terms of the Resolution. (II) Due to the present volatility and uncertainty of the market for tax-exempt obligations such as the Series 2008 Bond, it is in the best interest of the Issuer to sell the Series 2008 Bond by a negotiated sale to the Initial Purchaser pursuant to the provisions hereof and of the Resolution, allowing the Issuer to choose the date of issuance of the Series 2008 Bond rather than issuing the Series 2008 Bond on an advertised date, thereby permitting the Issuer to obtain the best possible price, terms and interest rate for the Series 2008 Bond. (I) The Issuer hereby certifies that no Event of Default (as defined in the Resolution) has occurred and is continuing and all of the covenants and other provisions of the Resolution shall apply to the Series 2008 Bond. (J) All of the representations, warranties and covenants of the Issuer set forth in the Resolution are confirmed and remade as of the date hereof. (K) The Resolution provides that the Series 2008 Bond shall mature on such dates and in such amounts, shall bear such rates of interest, shall be payable in such places and shall be subject to such redemption provisions as shall be determined by Supplemental Resolution adopted by the Issuer; and it is now appropriate that the Issuer determine such provisions, terms and details. (L) The Series 2008 Bond shall be repaid solely from the Limited Ad Valorem Tax (as defined in the Resolution) in the manner and to the extent set forth herein and in the Resolution. (M) It is necessary at this time that provision be made for the issuance of the Series 2008 Bond. SECTION 2. DEFINITIONS. When used in this Supplemental Resolution, the terms defined in the Resolution shall have the meanings therein stated, except as such definitions may be hereinafter amended or defined. SECTION 3. AUTHORITY FOR THIS SUPPLEMENT AL RESOLUTION. This Supplemental Resolution is adopted pursuant to the provisions of the Act and the Resolution. SECTION 4. AUTHORIZATION OF THE 2008 PROJECT. The Issuer hereby authorizes and approves the acquisition of the 2008 Project. The 2008 Project is generally described in Exhibit A attached hereto and is more particularly described in the ---. 3 -..-- records, plans and specifications on file with the Issuer. The 2008 Project may be subsequently amended by the Issuer from time to time. SECTION 5. ACCEPTANCE OF PROPOSAL. The Issuer hereby accepts the proposal of the IIlitial Purchaser to provide the Issuer with a term loan to finance the acquisition of the 2008 Project in the form attached hereto as Exhibit B, and selects Option 2 with respect thereto. To the extent of any conflicts between the provisions of the proposal and the Resolution, the provision of the Resolution shall apply.. The Chair, the Clerk and the County Manager are each hereby authorized to execute and deliver any documents required to formally accept such proposal and the terms thereof. All actions taken by such officers or their designees with respect to such proposal prior to the date hereof are hereby authorized and ratified. SECTION 6. DESCRIPTION OF THE SERIES 2008 BOND. The Issuer hereby authorizes the issuance of a Series of Bonds in the aggregate principal amount of not exceeding $21,000,000 to be known as the "Collier County, Florida Limited General Obligation Bond (Conservation Collier Project), Series 2008" (or such other series designation as the Chair may determine), for the principal purpose of financing all or a portion of the acquisition of the 2008 Project. The aggregate principal amount of the Series 2008 Bond to be issued pursuant to the Resolution shall be determined by the Chair provided such aggregate principal amount does not exceed $21,000,000. The Series 2008 Bond shall be dated as of its date of delivery to the Initial Purchaser, shall be issued in the form of one, fully registered term bond in the denomination of its aggregate principal amount, and shall be numbered "R-I." The text of the Series 2008 Bond shall be substantially in the form set forth in Section 2.10 of the Resolution with such changes as the Bank and the Issuer may mutually agree. The Series 2008 Bond shall bear interest from its dated date at a fixed interest rate per annum equal to 4.138% (the "Interest Rate"). The Interest Rate shall be calculated on a 30/360-day basis and is subject to adjustment as provided in Section 10 hereof. Interest shall be payable semi-annually, on January 1 and July 1 of each year (the "Interest Dates"), commencing on July 1, 2009, as set forth in the debt service schedule to be attached to the Series 2008 Bond. The Series 2008 Bond shall mature on January 1, 2013 and the principal of the Series 2008 Bond will be subject to mandatory sinking fund redemption in Amortization Installments commencing on January 1, 2010 and on each January 1 thereafter through the maturity date, the principal amounts of such Amortization Installments to be determined by the Chair and approved by the Initial Purchaser prior to the issuance of the Series 2008 Bond and set forth in the debt service schedule to be attached to the Series 2008 Bond; provided, however, notwithstanding any other provision of the Resolution to the contrary, the Issuer shall not be required to give the holder of the Series 2008 Bond any notice of redemption with respect to the scheduled .-........ ' 4 -.......- payment of such Amortization Installments. When the Series 2008 Bond has been paid in full accordance with the terms of the Resolution and of the Series 2008 Bond, the holder shall, upon request of the Issuer, cancel the Series 2008 Bond and deliver it to the Issuer or shall otherwise provide evidence to the Issuer that such Series 2008 Bond has been cancelled. The Series 2008 Bond shall be sold on a negotiated basis to the Initial Purchaser at a purchase price equal to 100% of the aggregate principal amount thereof. The Interest Rate on the Series 2008 Bond shall comply in all respects with Section 215.84, Florida Statutes. Principal and interest on the Series 2008 Bond shall be payable by check, draft, bank wire transfer or in such other manner as is agreed to between the Issuer and the holder of the Series 2008 Bond, made payable to and distributed to the holder in whose name such Bond shall be registered at the close of business on the date which shall be the fifteenth day (whether or not a Business Day) of the calendar month next preceding each Interest Date. All payments of principal and interest on the Series 2008 Bond shall be payable in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. The Issuer shall keep registration books and records as to the holder or holders of the Series 2008 Bond and shall act in the capacity of Paying Agent and Registrar for purposes of the Resolution. SECTION 7. LIMITED GENERAL OBLIGATION OF THE ISSUER. The Series 2008 Bond shall be a limited general obligation of the Issuer secured by and payable from the Limited Ad Valorem Tax as provided in the Resolution, particularly Section 4.0 I thereof. The Series 2008 Bond shall be on parity in all respects and shall rank equally as to lien on and source and security for payment from the Limited Ad Valorem Tax with the Series 2005A Bonds and any other Additional Bonds that may hereafter be issued. SECTION 8. REDEMPTION PROVISIONS FOR SERIES 2008 BOND. The Issuer may redeem the Series 2008 Bond, in whole or in part, at any time or from time to time by paying to the holder thereof the principal amount of the Series 2008 Bond to be prepaid, together with the unpaid interest accrued on the amount of principal so redeemed to the date of such redemption, plus a redemption premium equal to three percent (3.00%) of the principal amount so redeemed. Notwithstanding the foregoing, the Issuer may redeem the Series 2008 Bond in part only once per calendar year. Each redemption of the Series 2008 Bond shall be made on such date and in such principal amount as shall be specified by the Issuer in a notice delivered to the holder of the Series 2008 Bond not less than thirty (30) days prior thereto specifying the principal amount of the Series 2008 Bond to be redeemed and the date of such redemption. So long as the Issuer provides such notice of redemption, the provisions of Section 3.03 of ,~~ 5 '"'-- the Resolution shall not apply with respect to the Series 2008 Bond. Upon any redemption as provided herein and in the Resolution, the holder of the Series 2008 Bond and the Issuer shall mutually agree to a revised amortization schedule for the outstanding principal amount, if any, of such Series 2008 Bond and the holder of the Series 2008 Bond shall provide the County with evidence of such revised amortization. Amortization Installments for the Series 2008 Bonds shall be determined in accordance with Section 6 hereof. Notwithstanding any other provision hereof or of the Resolution to the contrary, the Issuer shall not be required to give the holder of the Series 2008 Bond any notice of redemption with respect to the scheduled payment of such Amortization Installments. SECTION 9. APPLICA TION OF SERIES 2008 BOND PROCEEDS. The proceeds derived from the sale of the Series 2008 Bond shall be applied by the Issuer as follows: (A) A sufficient amount of the Series 2008 Bond proceeds shall be held by the Issuer to pay costs and expenses associated with the issuance of the Series 2008 Bond, including but not limited to a fee of $5,500 for counsel to the Initial Purchaser. (B) The remaining proceeds of the Series 2008 Bond shall be deposited into an account established in the Project Fund and shall be used to pay to costs of the 2008 Project. SECTION 10. ADJUSTMENTS TO INTEREST RATE. (A) In the event of a Determination of Taxability (as defined below), the Interest Rate on the Series 2008 Bond shall be increased to such rate as shall provide the holder thereof with the same rate of return that the holder would have otherwise received on the Series 2008 Bond taking into account the increased taxable income of the holder of the Series 2008 Bond as a result of such Determination of Taxability (the "Adjusted Rate"); provided, however, such Adjusted Rate shall never exceed the maximum rate allowable by law. Immediately upon a Determination of Taxability, the Issuer agrees to pay to the holder of the Series 2008 Bond subject to such Determination of Taxability the Additional Amount. "Additional Amount" means (i) the difference between (a) interest on the Series 2008 Bond for the period commencing on the date on which the interest on the Series 2008 Bond (or portion thereof) loses its tax-exempt status and ending on the earlier of the date the Series 2008 Bond ceased to be outstanding or such adjustment is no longer applicable to the Series 2008 Bond (the "Taxable Period") at a rate per annum equal to the Adjusted Rate and (B) the aggregate amount of interest payable on the Series 2008 Bond for the Taxable Period under the provisions of the Series 2008 Bond, plus (ii) any penalties, fines, fees, costs and interest paid or payable by the holder of the Series 2008 Bond to the Internal Revenue Service by reason of such Determination of Taxability. '""-,. 6 ........./ For purposes of this Section 10, "Determination of Taxability" shall mean the circumstance of interest paid or payable on the Series 2008 Bond becoming includable for federal income tax purposes in the gross income of the holder thereof as a consequence of any act, omission or event whatsoever and regardless of whether the same was within or beyond the control of the Issuer. A Determination of Taxability will be deemed to have occurred upon (x) the receipt by the Issuer or the holder of the Series 2008 Bond of an original or a copy of an Internal Revenue Service Technical Advice Memorandum or Statutory Notice of Deficiency or other official letter or correspondence from the Internal Revenue Service which holds that any interest payable on the Series 2008 Bond is includable in the gross income of such holder; (y) the issuance of any public or private ruling of the Internal Revenue Service that any interest payable on the Series 2008 Bond is includable in the gross income of the holder thereof, or (z) receipt by the Issuer or the holder of an opinion of a Bond Counsel that any interest on the Series 2008 Bond has become includable in the gross income of the holder for federal income tax purposes. For all purposes of this definition, a Determination of Taxability will be deemed to occur on the date as of which the interest on the Series 2008 Bond is deemed includable in the gross income of the holder of the Series 2008 Bond. (B) If the Maximum Corporate Tax Rate (as defined below) as applicable to the holder of the Series 2008 Bond decreases from 35%, the Interest Rate otherwise borne by the Series 2008 Bond shall be increased to the product obtained by multiplying the interest rate otherwise borne by the Series 2008 Bond by a fraction, the numerator of which is 1 minus the Maximum Corporate Tax Rate as decreased and the denominator of which is .65. For purposes of this Section 10, "Maximum Corporate Tax Rate" shall mean the highest marginal United States federal income tax rate applicable to the taxable income of corporations without regard to any increase in tax designed to normalize the rate for all income at the highest marginal tax rate, which as of the date hereof is 35%. (C) If any holder of the Series 2008 Bond has not received payment of principal and interest within ten (10) days after it becomes due, regardless of whether any holder has declared an event of default under the Resolution, the Issuer shall be subject to and required to pay additional interest at an interest rate equal to 12.0% per annum for the total number of days for which the late payment is past due. SECTION 11. PROVISION OF INFORMATION. (A) The Issuer will furnish to the holder of the Series 2008 Bond within 180 days after the close of each fiscal year of the Issuer a copy of the annual audited financial statements of the Issuer. The Issuer shall provide the holder with a copy of the adopted annual budget of the Issuer each year within 30 days of the adoption of such budget. The Issuer shall also provide '-..- 7 ,",,--- the holder of the Series 2008 Bond any other information that the holder shall reasonably request in writing. (B) The holder of the Series 2008 Bond shall have the right to inspect all pertinent books, records, accountings, statements or other documentation as may relate to the Bonds, the 2008 Project, the security for the Bonds, any of the funds and accounts established under the Resolution, or any other provision of the Resolution, regardless of the outstanding principal amount of the Series 2008 Bond. SECTION 12. GENERAL AUTHORITY. The members of the Board, the County Manager, the Clerk and the officers, attorneys and other agents or employees of the Issuer are hereby authorized to do all acts and things required of them by this Supplemental Resolution, the Resolution, or desirable or consistent with the requirements hereof or the Resolution for the full punctual and complete performance of all the terms, covenants and agreements contained herein, in the Series 2008 Bond and in the Resolution, and each member, employee, attorney and officer of the Issuer or the Board, the County Manager and the Clerk is hereby authorized and directed to execute and deliver any and all papers and instruments and to do and cause to be done any and all acts and things necessary or proper for carrying out the transactions contemplated hereunder. If the Chair is unavailable or unable at any time to perform any duties or functions hereunder the Vice-Chairman of the Board is hereby authorized to act on his or her behalf. SECTION 13. SEVERABILITY AND INVALID PROVISIONS. If any one or more of the covenants, agreements or provisions herein contained shall be held contrary to any express provision 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 and stricken solely to the extent required by law 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 Series 2008 Bond. SECTION 14. RESOLUTION TO CONTINUE IN FORCE. The Series 2008 Bond shall be issued pursuant to the Resolution. Except as herein expressly provided, the Resolution and all the terms and provisions thereof are and shall remain in full force and effect. '" ..~ --- 8 ~.' SECTION 15. EFFECTIVE DATE. This Supplemental Resolution shall become effective immediately upon its adoption. DULY ADOPTED, in Regular Session this 18th day of November 2008. BOARD OF COUNTY COMMISSIONERS OF COLLIER CO TY, FLORIDA (SEAL) A TTEST:"~\"o'!r.""';", .....~~f~. Lt~;'J,tJ f"'fi 'i;, ,;y' \\..:.... ....~..:~~~... ...... . ~'., '. .~J '. ~.... . l..~ *~~ .... "1\!.1'-!l.. ~_\IVIoU" ,._..~~ I HEREBY CERTIFYTHATWI__._ ~o'rect CODY Of a aocumpor an fife fit""k,,' 80ard Minutes and Re~asof ColUet: CciJnb IfJIm:SS mv nl"<t.~?1Q:qf1f~ijl ~~","" .L:J..l:' aay 01 ~u..u:t" . ..,. ......' . " . . ~.. . _.~ '3WIGKTE. BROCK.~iEm( 'OF ~U'lI.::~ ... .~ ~~L~. .4 - \ , ... --- 9 "- -"'-...- EXHIBIT A DESCRIPTION OF 2008 PROJECT The 2008 Project generally consists of the acquisition of ten parcels of property consisting of approximately 2,511.9 acres of real property located in the Lake Trafford Area and commonly known as Pepper Ranch. ""'.- "-...-. EXHIBIT B PROPOSAL OF SUNTRUST EQUIPMENT FINANCE & LEASING CORP. /\ \ ----- '.- .\III~ SUNTRUST~ October 14, 2008 Collier County Board of County Commissioners Purchasing Department 3301 Tamiami Trail East, Bldg. "G" Naples, Florida 34112 Attn: Michael F. Hauer, CPPO-CPPB Purchasing Acquisitions Manager RE: $20,500,000 "Non Bank Qualified" Limited General Obligation Bond, Series 2008 SunTmst Equipment Finance and Leasing Corporation (SEFL), in cooperation with SunTmst Bank, is pleased to provide this proposal for $20,500,000 to The County for the refunding of bonds used for the acquisition of environmentally sensitive lands. Borrower: Collier County, Florida Lender: SunTmst Equipment Finance and Leasing Corp. Amount: $20,500,000 Terms: Maturity 1/1/2013 Interest Rates: OPTION 1: 4.492% Borrower may prepay in whole or in part at any time, during the term of the loan by giving Lender 30 days advance notice. OPTION 2: 4.331 % Borrower may prepay the Loan, in whole or in part, by giving the Lender 30 days advance notice. The Loan may be prepaid by paying the outstanding principal and interest then due plus 103%. "',-, Rate Lock: In order to hold either Fixed Interest Rate through a closing date no later than November 13, 2008, the Borrower must notify the '-,. Lender by October 17, 2008, in writing (confirmed receipt required) that the Lender is the apparent winner of the bid, subject to final council approval. If notification occurs by this date, the Lender will honor the selected Fixed Interest Rate for a closing on, or before, November 13, 2008. There will not be a penalty to the Borrower if notice is made by the indicated date, but the transaction is not fonnally awarded to the Lender. If the transaction does not close by November 13, 2008, Lender, at Lender's sole discretion, may extend the rate lock. Security: Amounts due under the Term Loan will be exclusively secured by a covenant to appropriate in the County's annual budget an amount from legally available ad valorem revenues not-to- exceed on quarter (114) mill on all taxable property within the County. The loan shall be on a parity basis with the Series 2005A Bonds pursuant to the Bond Resolution. The Limited Ad Valorem Tax pledged to pay debt service on the bonds shall be levied and collected in each fiscal year (September) ending September 30, 2009 through 2013 (the "Sunset Period"). Covenants: A) All matters relating to this loan, including all instruments and documents required, are subject to SEFL policies and procedures in effect, applicable governmental regulations and/or statutes, and approval by SEFL's Counsel. B) Borrower shall submit annual financial statements within 180 days of fiscal year end, together with an annual budget within 30 days of adoption, together with any other information SEFL may reasonably request. C) A written opinion from Borrower's Counsel, in form and substance acceptable to the SEFL's Counsel, that all documents are valid, binding and enforceable in accordance with their terms, that execution and delivery of said documents has been duly authorized, and addressing such other matters as the SEFL's Counsel deem appropriate. D) The interest rates quoted herein take into consideration a corporate tax rate of 35%. In the event of a change in the maximum corporate tax rate, the Lender shall have the right to adjust the interest rate in order to maintain the same after tax yield. . E) The Lender shall have the right to adjust the tax-exempt interest rate in order to maintain the same after tax yield if any amendments to existing law are enacted which would adversely affect the Lender's after tax yield. F) The Borrower shall comply with and agree to such other covenants, terms, and conditions that may be reasonably required by the Lender's and its counsel and are customary in taxable and/or tax exempt financings of this nature. These covenants would include, but are not to be limited to, covenants regarding compliance with laws and r~ulation, remedies in the event of default. "-... "-...- ,-. Loan Structure: Legal: Expiration: . -. Interest payments on the outstanding principal balance of the Term Lo~n will be calculated on a 30/360 day-count basis and will be paid semiannually on January 1 and July I, of each year, beginning July 1, 2009. The principal amount of the Term Loan will be payable annually January 1 of each year commencing January I, 2010 through January 1, 2013. Funding will be scheduled as the parties may agree. Borrower to provide all legal document.ation and i>ond counsel approving opinions and related documents at the expense of the borrower. SEFL will charge a Document Review fee of $5,500, payable at closing. Proposal expires in 30 days if not accepted by the Borrower or extended by Lender. " Although these provisions, terms and conditions are intended to be comprehensive, they are not necessarily inclusive of all the anticipated terms that will be applicable to the loan. All of such terms will be set forth in the fmal, definitive loan documents, and all such terms must be acceptable to Lender and its counsel. This proposal is contingent upon the accuracy of all facts, statements and financial information submitted to the Lender by the Borrower and is conditioned upon the tems outlined above. " SunTrust Leasing and SunTrust Bank greatly appreciate the opportunity to provide this financing proposal and look forward to building on our excellent partnership. Please call if you have any questions or comments. Sincerely, G. Victor Bryson V.P. - Public Finance Group SunTrust Equipment Finance and Leasing Corp. Accepted By: Collier County, Florida Name and Title ~ Date /\ ---.. '- - .\JI~ . . -=- SUNTRUST- October 14, 2008 C9llier County Board of County Commissioners Purchasing Department 3301 Tamiami Trail East, Bldg. "G" Napl~s, Florida 34112 Attn: Michael F. Hauer, CPPO-CPPB PurChasing Acquisitions Manager RE: $20,500,000 "Non Bank Qualified" Limited General Obligation Bond, Series 2008 SunTrust Equipment Finance and Leasing Corporation (SEFL), in cooperation with SunTrust Bank, is pleased to provide this proposal for $20,500,000 to The County for the refunding of bonds used for the acquisition of environmentally sensitive lands. Borrower: Collier County, Florida Lender: SunTrust Equipment Finance and Leasing Corp. Amount: $20,500,000 Terms: Maturity 1/112013 Interest Rates: OPTION 1: 4.492% Borrower may prepay in whole or in part at any time, during the terni. of the loan by giving Lender 30 days advance notice. OPTION 2: 4.331% Borrower may prepay the Loan, in whole or in part, by giving the Lender 30 days advance notice. The Loan may be prepaid by paying the outstanding principal anfl interest then due plus 103%. ""-- Rate Lock: In order to hold either Fixed Interest Rate through a closing date no later than November 13, 2008, the Borrower must notify the ... - Lender by October 17, 2008, in writing (confirmed receipt required) that the Lender is the apparent winner of the bid, subject to final council approval. If notification occurs by this date, the Lender will honor the selected Fixed Interest Rate for a closing on, or before, November 13, 2008. There will not be a penalty to the Borrower if notice is made by the indicated date, but the transaction is not formally awarded to the Lender. If the transaction does not close by November 13, 2008, Lender, at Lender's sole discretion, may extend the rate lock. Security: Amounts due under the Term Loan will be exclusively secured by a covenant to appropriate in the County's annual budget an amount from legally avaiJable ad valorem revenues not-to- exceed on quarter (114) mill on all taxable property within the County. The loan shall be on a parity basis with the Series 2005A Bonds pursuant to the Bond Resolution. The Limited Ad Valorem Tax pledged to pay debt service on the bonds shall be levied and collected in each fiscal year (September) ending September 30, 2009 through 2013 (the "Sunset Period"). Covenants: A) All matters relating to this loan, including all instruments and documents required, are subject to SEFL policies and procedures in effect, applicable governmental regulations and/or statutes, and approval by SEFL's Counsel. B) Borrower shall submit annual financial statements within 180 days of fiscal year end, together with an annual budget within 30 days of adoption, together with any other information SEFL may reasonably request. C) A written opinion from Borrower's Counsel, in form and substance acceptable to the SEFL's Counsel, that all documents are valid, binding and enforceable in accordance . with their terms, that execution and delivery of said documents has been duly authorized, and addressing such other matters as the SEFL's Counsel deem appropriate. D) The interest rates quoted herein take into consideration a corporate tax rate of 35%. In the event of a change in the maximum corporate tax rate, the Lender shall have the right to adjust the interest rate in order to maintain the same after tax yield. . E) The Lender shall have the right to adjust the tax-exempt interest rate in order to maintain the same after tax yield if any amendments to existing law are enacted which would adversely affect the Lender's after tax yield. F) The Borrower shall comply with and agree to such other covenants, terms, and conditions that may be reasonably required by the Lender's and its counsel and are customary in taxable and/or tax exempt financings of this nature. These covenants would include, butgare not to be limited to, covenants regarding compliance with laws and r~lation, remedies in the event of default. . -.....- '---' ---- - f .. Loan Structure: Interest payments on the outstanding principal balance of the Term Lo~ will be calculated on a 30/360 day-count basis and will be paid semiannually on January 1 and July 1, of each year, beginning July 1, 2009. The principal amount of the Term Loan will be payable annually January 1 of each year commencing January ~. 2010 through January 1, 2013. Funding will be scheduled as the parties may agree. Legal: Borrower to provide all legal document.ation and ~ond counsel approving opinions and related documents at the expense of the borrower. SEFL will charge a Document Review fee of $5,500, payable at closing. Expiration: Proposal expires in 30 days if not accepted by the Borrower or extended by Lender. " fO Although these provisions, terms and conditions are intended to be comprehensive, they are not necessarily inclusive of all the anticipated terms that will be applicable to the loan. All of such terms will be set forth in the fmal, definitive loan documents, and all such terms must be acceptable to Lender and its counsel. This proposal is contingent upon the accuracy of all facts, statements and financial information submitted to the Lender by the Borrower and is conditioned upon the temis outlined above. SunTrust Leasing and SunTrust Bank greatly appreciate the opportunity to provide this financing . proposal and look forward to building on our excellent partnership. Please call if you have any questions or comments. Sincerely, G. Victor Bryson V.P. - Public Finance Group SunTrust Equipment Finance and Leasing Corp. Accepted By: Collier County, Florida " Name and Title Date '-- DECLARATION STATEMENT BOARD OF COUNTY COMMISSIONERS Collier County Government Complex Naples, Florida 34112 RE: RFC 08-5139 -- "Request for Commitment, limited General Obligation Bond, Series 2008 Bank Term Loan" Dear Commissioners: The undersigned, as submitter (herein used in the masculine, singular. irrespective of actual gender and number) declares that he is the only person interested in this RFC or in the contractual agreement to which this RFC pertains, and that this submission is made without connection or arrangement with any other person and this submission is in every respect fair and made in good faith, without collusion or fraud. The submitter further declares that he has complied in every respect with all the requirements issued prior to the closing of responses, and that he has satisfied himself fully relative to all matters and conditions with respect to the general condition of the contractual agreement to which the RFC pertains. The submitter puts forth and agrees, if this response is accepted, to execute an appropriate Collier County document for the purpose of establishing a formal contractual relationship between him, and Collier County, for the performance of all requirements to which the RFC pertains. The submitter states that the response is based upon the documents listed by RFC#08-5139. '-- (Statement Continued on Next Page) "-- 5T A TEMENT CONTINUED IN WITNESS WHEREOF I WE have hereunto s!Jbscrib~d our names. on this / ~ of (Je-fd ~"Y , 2008 in the County of 0 rb,/'l,f f!. I in the State of F 1()~"'Jt . ,/ . fc/nfv}f &Pff/(JI1lH'lr r:~{fnc(J, / L e-~S//Uj (c:/~ Firm's Complete Legal Name' f;/ 700 >cJvf t. () ra4fiY I!.~, I /)r!q"kl fi~:/~ ~~~ J I I ;2 go I (City, State, ZIP) Phone No: 1107- J- J 7" 6g~3 Fax No: 1/117- '2'17- /, 7 d It day By: k~~ Typed and ritten Signature Check one of the following: ~sole Proprietorship /l II . Corporation or P .A. State of U' Limited Partnership D General Partnership Title I ************* **************************************************************************************** ADDITIONAL CONTACT INFORMATION Send Payments To: . (REQUIRED ONLY if Contact Name: (Company Name used as Payee) . Title: (Address) (City, State, ZIP) Phone No: Fax No: Email address: Office Servicing Collier County Account /Place Orders/Request Supplies (REQUIRED ONLY if different from above) (Address) Contact Name Phone No: · Title (City, State, ZIP) Fax No: Email Address: ---..... ,~- CONFLICT OF INTEREST AFFIDAVIT By the signature below, the firm (employees, officers and/or agents). certifies, and hereby discloses, that, to the best of their knowledge and belief, all relevant facts . concerning past, present, or currently planned interest or activity (financial, contractual, organizational, or otherwise) which relates to the proposed work; and bear on whether the firm (employees, officers and/or agents) has a possible conflict have been fully disclosed. Additionally, the firm (employees, officers and/or agents) agrees to immediately notify in writing the Purchasing/General Services Director, or designee, if any actual or potential conflict of interest arises during the contract and/or project duration. ? <In /r~r ~1:/!t fhHtFG 11aJty tot, h/~ /P)!2to1 Y t '71 rP/J , Name Printed C--eal}e ./ 1/;/ Title of Person Signing Affidavit , State of ~ ) County of ) SUB~CRIBED AND SWORN to before me this \'-rlhaayof DrJoW ,20!L'i by oA dIif . V .~ & ~ , who is personally known to me to be the for the FIrm, OR who produced the following identification: ~ Notary Public My Commission Expires: jM). !)~ :;Db' I ........... MICHElLE ttAGAN MY COMMISSION' 00 3S7784 EXPIRES: JllIIUIlV 28, 2009 ~ '\'hIlI Ndlry PIdc UndIIWI\lIlI v~ COLLIER COUNTY OFFICE OF MANAGEMENT & BUDGET 3301 East Tamiami Trail. Naples, Florida 34112. (239) 252-8973eFAX: (239) 252-8828 October 22, 2008 Mr. G. Victor Bryson Vice President Public Finance Group SunTrust Equipment Finance and Leasing Corp. RE: RFC 08-5139 - "Request for Commitment, Limited General Obligation Bond, Series 2008 Bank Term Loan" Dear Mr. Bryson: This letter is to inform you that SunTrust Equipment Finance and Leasing Corp. has been determined by Collier County to be the lowest overall cost of borrowing bidder under RFC 08-5139. Your commitment offer will be recommended, by staff, to the Board of County Commissioners on November 18, 2008. During discussions with and email of October 21,2008, to the County's Financial Advisor, you have agreed to extend your offe"r' of a revised rate of 4.138%, interest rate option #2, until November 22,2008: The offer is; subject to approval by the Board .of County Commissioners ,on:November18; 20Q8. Please be advised that the County will not be subject to any costs or charges should the Board of County Commissioners fail to accept your commitment. .......... 4 "-- INCUMBENCY CERTIFICATE We, Tom Henning, Chairman of the Board of County Commissioners of Collier County, Florida (the "County"), and Derek M. Johnssen, Deputy Clerk of the Board of County Commissioners of the County, DO HEREBY CERTIFY as follows: 1. The following are now, and have continuously been since the dates of beginning of their respective current terms shown below, the duly elected, qualified and acting members of the Board of County Commissioners of Collier County, Florida, and the dates of the beginning and ending of their respective current terms are hereunder correctly designated opposite their names: Member Beginning Date of Current Term Ending Date of Current Term James N. Coletta, Jr. Tom Henning Donna L. Fiala Fred W. Coyle Frank Halas November, 2008 November, 2008 November, 2008 November, 2006 November, 2006 November, 2012 November, 2012 November, 2012 November, 2010 November, 2010 2. The following are now, and have continuously been since the dates of beginning of their respective current terms of office shown below, the duly elected or appointed (as the case may be), qualified and acting officers of the County and the dates of the beginning and ending of their respective current terms of office are hereunder correctly designated opposite their names: Office Name Beginning Date of Current Term Ending Date of Current Term Chairman Tom Henning January, 2008 January, 2009 Clerk Dwight E. Brock January, 2005 January, 2009 3. To the best of our knowledge, there are no actions, suits or proceedings pending or threatened against or affecting the County, at law or in equity, or before or by any governmental authority, that, if adversely determined, would materially impair the ability of the County to perform the County's obligations under the Resolution or under the Series 2008 Bond. 4. The financial information concerning the County heretofore delivered to the --- Bank is complete and correct and fairly presents the financial condition of the County for '-- the period(s) referred to and has been prepared in accordance with generally accepted accounting principles applied on a consistent basis throughout the period(s) involved. There are no liabilities (of the type required to be reflected on balance sheets prepared in accordance with generally accepted accounting principles), direct or indirect, fixed or contingent, of the County as of the date of such financial information which are not reflected therein. There has been no material adverse change in the financial condition or operations of the County since the date of such information (and to the County's knowledge no such material adverse change is pending or threatened), and the County has not guaranteed the obligations of, or made any investment in or loans to, any person except as disclosed in such information. 5. No event has occurred which would constitute a payment-related event of default or an event of termination due to a failure to appropriate funds under any debt, note, revenue bond, lease-purchase, payment agreement, contract or obligation which the County has issued or entered into during the past ten (10) years. All terms not otherwise defmed herein shall have the meanings ascribed thereto in Resolution No. 2004-383 adopted on December 14,2004, as supplemented. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the County as of this 21st day of November, 2008. . , . , , r I, ~ I' F,." _:: ,,' .- r: ~ . .,,\ ::. ~~,. -: ~ issioners of (SEAL) , ~ I -,. / ~,. ., ('''' n = Chairman, Board of County Collier Coun , lorida , . , , " ' , . " , I '1Ifl. , . . ' .,~... ~. '0,.' '. . , . ~ . ' '''':- " .,' t ~ t , . . , t \ l . ' Depu lerk of the Board of County Commissioners of Collier County, Florida 1:;r7!r::t Deputy County Attoraey ------ 5 ............. SIGNATURE CERTIFICATE We, the undersigned, DO HEREBY CERTIFY as follows: 1. That we did heretofore cause to be officially executed the obligations described in Schedule A attached hereto (the "Bond") of Collier County, Florida (the "County"). 2. That Tom Henning, Chairman of the Board of County Commissioners of Collier County, Florida, has executed the Bond by his manual signature, and that said Chairman was on the date he signed the Bond and is now the duly chosen, qualified and acting Chairman of the County. 3. That we have caused the official seal of the County to be imprinted on the Bond, said seal imprinted hereon being the official seal of the County, and that Dwight E. Brock, Clerk of the Circuit Court of the County and Ex-Officio Clerk of the Board of County Commissioners of the County, has caused such seal to be attested by his manual signature with respect to the Bond, and that said Dwight E. Brock was on the date he signed the Bond and is now the duly elected and acting Clerk of the County. 4. That the seal which has been impressed on or otherwise reproduced on the Bond and upon this certificate is the legally adopted, proper and only seal of the County. .,.~.JN.;~X~INE~S WHEREOF, ,,:e have hereunto set our hands and affixed the ,:~Rftl~i;;rl se,alfb~~,COl.lllty as of this 21 s day of November, 2008. '<\{~.:~:>\) ;-."":::";' L' ". r (<::\ ;\P'~~e.AL):,.,; . .,p". ':;, ;~ -::--', - ',::f""-,:~>" ,:# Title of Office Term of Office Expires Chairman January 2009 Clerk January 2009 '............ ~it72'~ o.,.ty CoUDty Attoney '-- '-- I, Derek M. Johnssen, Deputy Clerk of the Board of County Commissioners of Collier County, Florida, do hereby certify that the signatures of the officers which appear above are true and genuine and that I know said officers and know them to hold the offices set opposite their names. lerk of the Board of County issioners of Collier County, Florida SCHEDULE A '--- - $13,244,204 COLLIER COUNTY, FLORIDA LIMITED GENERAL OBLIGATION BOND (CONSERVATION COLLIER PROGRAM), SERIES 2008 Date Amortization Interest (January 1) Installment Rate 2010 $3,067,279 4.138% 2011 3,257,597 4.138 2012 3,390,147 4.138 2013 3,529,181 4.138 '-,- 6 '-~ CERTIFICATE AS TO ARBITRAGE AND CERTAIN OTHER TAX MATTERS We, Tom Henning, Chairman of the Board of County Commissioners (the "Board") of Collier County, Florida (the "County"), and Derek Johnssen, Deputy Clerk of the Board, being persons duly charged, together with others, with the responsibility for issuing the $13,244,204 Collier County, Florida Limited General Obligation Bond (Conservation Collier Program), Series 2008 (the "Series 2008 Bond"), dated as of November 21,2008, and being issued this day, DO HEREBY CERTIFY that: 1. AUTHORIZATION AND DEFINITIONS. The Series 2008 Bond is being issued pursuant to the authority contained in Chapter 125, Florida Statutes, Article VII, Section 12 of the Florida Constitution, Ordinance No. 2004-78 enacted by the County on December 14, 2004, and other applicable provisions of law and Resolution No. 2008-383, adopted by the County on December 14, 2004, as supplemented (collectively, the "Resolution"). The terms defmed in the Resolution shall retain the meanings set forth therein when used in this Certificate unless the context clearly indicates another meaning is intended. Other terms used in this Certificate shall have the meanings set forth herein or in the Internal Revenue Code of 1986, as amended, and the applicable Treasury Regulations promulgated thereunder and under the Internal Revenue Code of 1954, as amended (collectively, the "Code"), or in the Arbitrage Rebate Statement attached hereto as Exhibit A, in each case unless the context clearly indicates another meaning is intended. 2. PURPOSE. The Series 2008 Bond are being issued for the principal purposes of (a) financing the costs of the acquisition of environmentally sensitive lands as more fully described in the Resolution (the "2008 Project") and (b) paying certain costs of issuance of the Series 2008 Bond. 3. FACTS, ESTIMATES AND CIRCUMSTANCES. On the basis of the facts, estimates and circumstances in existence on the date hereof, I reasonably expect the following with respect to the Series 2008 Bond and with respect to the proceeds of the Series 2008 Bond: (a) NET PROCEEDS. (i) Total. The amount of proceeds received by the County from the sale of the Series 2008 Bond (the "Net Proceeds") will be $13,244,204.00. '- ,- '-~ (ii) Project Fund Deposit. An amount of the Net Proceeds of the Series 2008 Bond equal to $13,200,000.00 will be deposited to the Project Fund and will be applied to fmance certain costs of the acquisition of the 2008 Project. (iv) Costs of Issuance. An amount of the Net Proceeds of the Series 2008 Bond equal to $44,204.00 will be held by the County and will be used within six months of the date hereof to provide for the payment of the expenses of issuing the Series 2008 Bond. (b) NO OVERlSSUANCE. The Net Proceeds of the Series 2008 Bond ($13,244,204.00), less payment of the costs of issuance of $44,204.00 will be $13,200,000.00 (the "Original Proceeds"). Taking into account other available funds, the amount of Original Proceeds necessary to pay the costs of the 2008 Project equals or exceeds $13,200,000.00 plus investment earnings thereon. (c) AS TO THE 2008 PROJECT. (i) Project Fund. An amount of the Original Proceeds equal to $13,200,000 will be deposited in the Project Fund and such amount and the investment earnings thereon will be used to pay the costs of the 2008 Project. (ii) Use ofProiect Fund Moneys. The County expects to spend all of the Original Proceeds of the Series 2008 Bond deposited in the Project Fund and any investment proceeds related thereto on or before November 20, 2011. (iii) Binding Obligations. The County has spent or expects, within six months of the date hereof, to spend (or to enter into binding obligations with third parties obligating the County to spend) from the Original Proceeds and any investment proceeds thereon, an amount at least equal to 5% of the costs of the 2008 Project to be financed from such Original Proceeds (including any capitalized interest) in order to acquire such portion of the 2008 Project. (iv) Due Diligence. Work on the acquisition of the 2008 Project funded from the Original Proceeds will proceed with due diligence to the completion thereof. (v) Disposal of 2008 Proiect. The 2008 Project is not expected to be sold or disposed of prior to the maturity date of the Series 2008 Bond, except such portions as may be disposed of in the normal course of business. (vi) Reimbursement. The County will not reimburse itself from proceeds of the Series 2008 Bond for any expenditures made by the County prior to the date the Series 2008 Bond were issued except for (A) any expenditures that were made "- /' 2 "-.- within 60 days prior to the adoption date of Resolution No. 2008-337 (November 18, 2008), and (B) any "preliminary expenditures" authorized to be reimbursed pursuant to Treasury Regulations Section 1.150-2. (d) FLOW OF FUNDS. (i) Sinking Fund. The Limited Ad Valorem Tax levied pursuant to the Resolution to pay debt service on the Bonds shall be deposited as collected into the Sinking Fund established under the Resolution. The County has not created and established, and does not expect to create or establish any fund or account in connection with the Bonds that is reasonably expected to be used to pay debt service on the Bonds other than the Sinking Fund. The Sinking Fund will be used primarily to achieve a proper matching of revenues and debt service within each bond year and will be depleted at least annually except for a reasonable carryover amount not to exceed the greater of (A) one year's earnings on amounts in the Sinking Fund, or (B) one-twelfth of annual debt service on the Bonds. Amounts deposited in the Sinking Fund will be used to pay debt service on the Bonds within a thirteen month period beginning on the date of deposit therein. (e) INVESTMENT EARNINGS. Any and all income received from the investment of moneys in the Sinking Fund shall be retained in such Fund. (t) NO OTHER FUNDS OR ACCOUNTS. Other than the Sinking Fund, no Fund or Account has been established pursuant to any instrument which secures or otherwise relates to the Bonds. 4. YIELD. (a) GENERAL. For purposes of this Certificate, bond yield is, and shall be, calculated in the manner provided in Treasury Regulations Section 1.148-4, and the provisions therein will be complied with in all respects. The term "bond yield" means, with respect to a bond, the discount rate that when used in computing the present value of all the unconditionally payable payments of principal and interest and all the payments for a qualified guarantee paid and to be paid with respect to the bond produces an amount equal to the present value of the issue price of the bond. In computing the purchase price of the Series 2008 Bond, which is equal to the issue price, the County did not take into consideration the costs of issuance. The purchase price of the Series 2008 Bond, therefore, is $13,244,204. For purposes hereof, yield is, and shall be, calculated on a 360-day year basis with interest compounded semiannually. As of the date hereof, the yield on the Series 2008 Bond calculated in the above-described manner is 4.135727% (the "2008 Bond Yield"). Such yield calculation has been computed for the County by Public Financial Management Inc., the Financial Advisor for the County ("PFM"). It ',/ 3 '-- should be noted, however, that such yield may, under certain circumstances set forth in the Treasury Regulations, be subject to recalculation. The purchase price of all obligations other than certain tax-exempt investments ("Taxable Obligations") to which restrictions as to yield or rebate of excess earnings under this Certificate applies shall be calculated using (i) the price, taking into account discount, premium, and accrued interest, as applicable, actually paid or (ii) the fair market value if less than the price actually paid and if such Taxable Obligations were not purchased directly from the United States Treasury. The County will acquire all such Taxable Obligations directly from the United States Treasury or in arms length transactions without regard to any amounts paid to reduce the yield on such Taxable Obligations. The County will not payor permit the payment of any amounts to reduce the yield on any Taxable Obligations. (b) SINKING FUND - DEBT SERVICE. Amounts held in the Sinking Fund which are set aside for the payment of the principal of and interest on the Series 2008 Bond will be invested without regard to yield restrictions for a period not to exceed 13 months from the date of deposit of such amounts in such Fund. Any amounts not expended within the period set forth above shall be invested at a yield not in excess of the 2008 Bond Yield. (c) PROJECT FUND. The amounts on deposit in the Project Fund, including any investment earnings thereon, shall be invested without regard to yield restrictions for a period of not to exceed 36 months from the date of deposit therein. Any such amounts not expended within such period shall be invested at a yield not in excess of the 2008 Bond Yield. (d) INVESTMENT EARNINGS. All investment earnings on amounts deposited in the Sinking Fund may be invested without regard to yield restrictions for a period not to exceed one year from the date of receipt of the amount earned. Any investment earnings not expended within the applicable period set forth above shall be subject to yield restrictions. (e) OTHER FUNDS AND ACCOUNTS. Any other funds and accounts not described in subsection (b) of this Section 4 may be invested without regard to yield restrictions. (f) YIELD REDUCTION PAYMENTS. Any amounts subject to yield restrictions may be subject to yield reduction payments pursuant to Treasury Regulations Section 1.148-5( c). 5. FURTHER CERTIFICATIONS. The County will take no action which would cause the Series 2008 Bond to become Private Activity Bonds (as such term is '-- ~ -/ 4 -- defined in the Code). None of the Gross Proceeds of the Series 2008 Bond will be used directly or indirectly in any trade or business carried on by any person other than a governmental unit. No bonds or other obligations of the County (a) were sold in the 15 days preceding the date of sale of the Series 2008 Bond or (b) were sold or will be sold within the 15 days after the date of sale of the Series 2008 Bond, pursuant to a common plan of financing with the plan for the issuance of the Series 2008 Bond and payable out of substantially the same source of revenues. The County does not expect that the proceeds of the Series 2008 Bond will be used in a manner that would cause them to be arbitrage bonds under Section 148 of the Code. The County does not expect that the proceeds of the Series 2008 Bond will be used in a manner that would cause the interest on the Series 2008 Bond to be includable in the gross income of the holder of the Series 2008 Bond under Section 103 of the Code. 6. REBATE. The County has established a Rebate Fund for the Series 2008 Bond and shall deposit moneys therein as required by the terms of the Arbitrage Rebate Statement attached hereto as Exhibit A. Moneys in the Rebate Fund shall be held in trust by the County and, subject to the provisions hereof, shall be held for the benefit of the United States Government as contemplated under the provisions hereof and shall not constitute part of the trust estate held for the benefit of the holders of the Series 2008 Bond or the County. The County acknowledges and agrees to comply with the terms of the Arbitrage Rebate Statement attached hereto as Exhibit A. 7. AMENDMENTS. The provisions hereof need not be observed and this Certificate may be amended or supplemented at any time by the County if, in each case, the County receives an opinion or opinions of Bond Counsel that the failure to comply with such provisions will not cause, and that the terms of such amendment or supplement will not cause, any of the Series 2008 Bond to become arbitrage bonds under Section 148 of the Code, or other applicable section of the Code, or otherwise cause interest on any of the Series 2008 Bond to become includable in gross income for federal income tax purposes under the Code. 8. SERIES 2008 BOND NOT FEDERALLY GUARANTEED. Payment of debt service on the Series 2008 Bond is not directly or indirectly guaranteed in whole or in part by the United States, within the meaning of Section 149(b) of the Code. None of the Original Proceeds will be invested directly or indirectly in federally insured deposits or accounts except for Original Proceeds invested during the applicable temporary periods described herein until such Original Proceeds are needed for the purpose for which the Series 2008 Bond are being issued. ......../ 5 '--- 9. SERIES 2008 BOND NOT HEDGE BOND. It is reasonably expected that not less than 85% of the Original Proceeds will be used to carry out the governmental purposes of the Series 2008 Bond within three years from the date of its issuance. Not more than 50% of such Original Proceeds were invested in nonpurpose investments having a substantially guaranteed yield for four years or more (including but not limited to any investment contract or fixed yield investment having maturity of four years or more). The reasonable expectations stated above were not based on and did not take into account any expectations or assumptions as to the occurrence of changes in market interest rates or of federal tax. law or regulations or rulings thereunder. These reasonable expectations were not based on any prepayments of items other than items which are customarily prepaid. 10. ADDITIONAL COVENANTS. The County further agrees to (a) impose such limitations on the investment or use of moneys or investments related to the Series 2008 Bond, (b) make such rebate payments to the United States Treasury, (c) maintain such records, (d) perform such calculations, (e) enter into such agreements, and (f) perform such other acts as may be necessary under the Code to preserve the exclusion from gross income for purposes of federal income taxation of interest on the Series 2008 Bond, which it may lawfully do. 11. INFORMATION. The County agrees to file all information statements as may be required by the Code. 12. VALUATION AND MARKET PRICE RULES. In determining the amounts on deposit in any fund or account for purposes of this Certificate, the purchase price of the obligations, including accrued interest, shall be added together, and adding to or subtracting from such purchase prices any discount, computed ratably on an annual basis. With respect to any amounts required to be restricted as to yield, the "market price rules" set forth in Exhibit A attached hereto shall apply. 13. NO REPLACEMENT. No portion of the amounts received from issuance, conversion, sale or remarketing of the Series 2008 Bond will be used as a substitute for other funds which were otherwise to be used for the purposes for which the Series 2008 Bond are being issued, and which have been or will be used to acquire, directly or indirectly, obligations producing a yield in excess of the 2008 Bond Yield. The weighted average maturity of the Series 2008 Bond does not exceed 120% of the average reasonably expected economic life of the 2008 Project. 14. RELIANCE. The County has relied on certain representations made by Public Financial Management, Inc. in its certificate attached hereto as Exhibit B. The County is not aware of any facts or circumstances that would cause it to question the accuracy of such representations. ""......-,/ 6 ",-. 15. NO ADVERSE ACTION. The County has neither received notice that its Certificate may not be relied upon with respect to its issues, nor has it been advised that any adverse action by the Commissioner of Internal Revenue Service is contemplated. To the best of our knowledge and belief there are no facts, estimates or circumstances other than those expressed herein that materially affect the expectations herein expressed, and, to the best of my knowledge and belief, the County's expectations are reasonable. I further represent that the County expects and intends to be able to comply with the provisions and procedures set forth herein, including Section 148 of the Code. IN WITNESS WHEREOF, we have hereunto set our hands as of the 21st day of November, 2008. COLLIER COUNTY, FLORIDA ty Commissioners lerk of the Board of County ISSlOners ~toron"~r tI- I( ~ { - Deputy County Attorney ,~ 7 EXHffiIT A '-..- ARBITRAGE REBATE STATEMENT This Arbitrage Rebate Statement ("Statement") is intended to set forth certain duties and requirements necessary for compliance with Section 148(f) of the Code to the extent necessary to preserve the tax-exempt treatment of interest on the $13,244,204 Collier County, Florida Limited General Obligation Bond (Conservation Collier Program), Series 2008 (the "Series 2008 Bond"). This Statement is based upon Section 148(f) of the Code and by analogy, to the Regulations. However, it is not intended to be exhaustive. Since the requirements of such Section 148(f) are subject to amplification and clarification, it may be necessary to supplement or modify this Statement from time to time to reflect any additional or different requirements of such Section and the Regulations or to specify that action required hereunder is no longer required or that some further or different action is required to maintain or assure the exemption from federal income tax of interest with respect to the Series 2008 Bond. For purposes hereof, any covenant relating to a fund, account or subaccount established under the Resolution shall be deemed to apply only to that portion of such fund, account or subaccount allocable to the Series 2008 Bond. SECTION 1. TAX COVENANTS. Pursuant to the Resolution, the County has made certain covenants designed to assure that the interest with respect to the Series 2008 Bond is and shall remain excludable from gross income for purposes of federal income taxation. The County shall not, directly or indirectly, use or permit the use of any proceeds of the Series 2008 Bond or any other funds or take or omit to take any action that would cause the Series 2008 Bond to be "arbitrage bonds" within the meaning of Section 148 of the Code or that would cause interest on the Series 2008 Bond to be included in gross income for federal income tax purposes under the provisions of the Code. The County shall comply with all other requirements as shall be determined by Bond Counsel to be necessary or appropriate to assure that interest on the Series 2008 Bond will be excludable from gross income for purposes of federal income taxation. To that end, the County shall comply with all requirements of Section 148 of the Code to the extent applicable to the Series 2008 Bond. SECTION 2. DEFINITIONS. Capitalized terms used herein, not otherwise defined herein, shall have the same meanings set forth in the Resolution and in the County's Certificate as to Arbitrage and Certain Other Tax Matters relating to the Series 2008 Bond. '\."........ A-I "-..- "Bond Counsel" means Nabors, Giblin & Nickerson, P.A., Tampa, Florida or such other firm of nationally recognized bond counsel as may be selected by the County. "Bond Year" means anyone-year period (or shorter period from the Issue Date) ending on the close of business on the day preceding the anniversary of the Issue Date. "Code" means the Internal Revenue Code of 1986, as amended. "Computation Date" means each date selected by the County as a computation date pursuant to Section 1.148-3(e) of the Regulations and the Final Computation Date. "Fair Market Value" means, when applied to a Nonpurpose Investment, the Fair Market Value of such Investment as determined in accordance with Section 4 hereof. "Final Computation Date" means the date the Series 2008 Bond are discharged. "Gross Proceeds" means, with respect to the Series 2008 Bond: (1) Amounts constituting Sale Proceeds of the Series 2008 Bond. (2) Amounts constituting Investment Proceeds ofthe Series 2008 Bond. (3) Amounts constituting Transferred Proceeds of the Series 2008 Bond. (4) Other amounts constituting Replacement Proceeds of the Series 2008 Bond, including Pledged Moneys. "Investment Proceeds" means any amounts actually or constructively received from investing proceeds of the Series 2008 Bond. "Investment Property" shall have the meaning as ascribed to such term in Section 148(b)(2) of the Code, which includes any security, obligation or other property held principally as a passive vehicle for the production of income, within the meaning of Section 1.148-1 (e) of the Regulations. "Issue Date" means November 21,2008. "Net Proceeds" means Sale Proceeds, less the portion of such Proceeds invested in a reasonably required reserve or replacement fund under the Code. "Nonpurpose Investment" means any Investment Property in which Gross Proceeds are invested which is not an investment that is acquired to carry out the governmental purpose of the Series 2008 Bond, e.g., obligations acquired with Gross Proceeds that are invested temporarily until needed for the governmental purpose of the ""-' A-2 ,--- 15. NO ADVERSE ACTION. The County has neither received notice that its Certificate may not be relied upon with respect to its issues, nor has it been advised that any adverse action by the Commissioner of Internal Revenue Service is contemplated. To the best of our knowledge and belief there are no facts, estimates or circumstances other than those expressed herein that materially affect the expectations herein expressed, and, to the best of my knowledge and belief, the County's expectations are reasonable. I further represent that the County expects and intends to be able to comply with the provisions and procedures set forth herein, including Section 148 of the Code. IN WITNESS WHEREOF, we have hereunto set our hands as of the 21st day of November, 2008. COLLIER COUNTY, FLORIDA By: Chairman, Board of County Commissioners By: Deputy Clerk of the Board of County Commissioners ,/ 7 '--' Series 2008 Bond, that are used to discharge a prior issue, or that are invested in a reasonably required reserve or replacement fund, as referenced in Section 1.148-1(b) of the Regulations. "Nonpurpose Payments" shall include the payments with respect to Nonpurpose Investments specified in Section 1.148-3(d)(1)(i)-(v) of the Regulations. "Nonpurpose Receipts" shall include the receipts with respect to Nonpurpose Investments specified in Section 1.148-3(d)(2)(i)-(iii) of the Regulations. "Pledged Moneys" means moneys that are reasonably expected to be used directly or indirectly to pay debt service on the Series 2008 Bond or as to which there is a reasonable assurance that such moneys or the earnings thereon will be available directly or indirectly to pay debt service on the Series 2008 Bond if the County encounters financial difficulties. "Pre-Issuance Accrued Interest" means amounts representing interest that has accrued on an obligation for a period of not greater than one year before its issue date but only if those amounts are paid within one year after the Issue Date. "Proceeds" means any Sale Proceeds, Investment Proceeds and Transferred Proceeds of the Bonds. "Qualified Administrative Costs" means reasonable, direct administrative costs, other than carrying costs, such as separately stated brokerage and selling commissions that are comparable to those charged nongovernmental entities in transactions not involving tax-exempt bond proceeds, but not legal and accounting fees, recordkeeping, custody or similar costs. In addition, with respect to a guaranteed investment contract or investments purchased for a yield restricted defeasance escrow, such costs will be considered reasonable if (1) the amount of the fee the County treats as a Qualified Administrative Cost does not exceed the lesser of (a) $34,000 (for calendar year 2008), or (b) the greater of (x) .2% of the "computational base", or (y) $3,000; and (2) the County does not treat as Qualified Administrative Costs more than $95,000 (for calendar year 2008) in brokers' commissions or similar fees with respect to all guaranteed investment contracts and investments for yield restricted defeasance escrows purchased with Gross Proceeds of the issue. For purposes of this definition only, "computational base" shall mean, with respect to guaranteed investment contracts, the amount of Gross Proceeds the County reasonably expects, as of the date the contract is acquired, to be deposited in the guaranteed investment contract over the term of the contract and for investments other than guaranteed investment contracts, "computational base" shall mean the amount of Gross Proceeds initially invested in such investments. The above-described safe harbor \,-/ A-3 ......--- dollar amounts shall be increased each calendar year for cost-of-living adjustments pursuant to Section 1. 148-5(e) of the Regulations. "Rebatable Arbitrage" means, as of any Computation Date, the excess of the future value of all Nonpurpose Receipts over the future value of all Nonpurpose Payments. "Rebate Fund" means the Rebate Fund established pursuant to the Resolution and described in Section 3 hereof. "Regulations" means Treasury Regulations Sections 1.148-0 through 1.148-11, 1.149(b)-1 and (d)-I, and 1.150-0 through 1.150-2, as amended, and any regulations amendatory, supplementary or additional thereto. "Replacement Proceeds" means amounts that have a sufficiently direct nexus to the Series 2008 Bond or to the governmental purpose of the Series 2008 Bond to conclude that the amounts would have been used for that governmental purpose if the Proceeds of the Series 2008 Bond were not used or to be used for that governmental purpose. For this purpose, governmental purposes include the expected use of amounts for the payment of debt service on a particular date. The mere availability or preliminary earmarking of amounts for a governmental purpose, however, does not in itself establish a sufficient nexus to cause those amounts to be Replacement Proceeds. Replacement Proceeds include, but are not limited to, amounts held in a sinking fund or a pledged fund. For these purposes, an amount is pledged to pay principal of or interest on the Series 2008 Bond if there is reasonable assurance that the amount will be available for such purposes in the event that the County encounters [mancial difficulties. "Sale Proceeds" means any amounts actually or constructively received by the County from the sale of the Series 2008 Bond, including amounts used to pay underwriters' discount or compensation and interest other than Pre-Issuance Accrued Interest. Sale Proceeds shall also include, but are not limited to, amounts derived from the sale of a right that is associated with a Series 2008 Bond and that is described in Section 1.148-4(b)( 4) of the Regulations. "Tax-Exempt Investment" means (i) an obligation the interest on which is excluded from gross income pursuant to Section 103 of the Code, (ii) United States Treasury-State and Local Government Series, Demand Deposit Securities, and (iii) stock in a tax-exempt mutual fund as described in Section 1.150-1(b) of the Regulations. Tax- Exempt Investment shall not include a specified private activity bond as defined in Section 57(a)(5)(C) of the Code. For purposes of this Statement, a tax-exempt mutual fund includes any regulated investment company within the meaning of Section 851 ( a) of the Code meeting the requirements of Section 852(a) of the Code for the applicable ,--. A-4 ,..---' taxable year; having only one class of stock authorized and outstanding; investing all of its assets in tax-exempt obligations to the extent practicable; and having at least 98% of (1) its gross income derived from interest on, or gain from the sale of or other disposition of, tax-exempt obligations or (2) the weighted average value of its assets represented by investments in tax-exempt obligations. "Transferred Proceeds" shall have the meaning provided therefor in Section 1.148-9 of the Regulations. "Universal Cap" means the value of all then outstanding Series 2008 Bond. "Value" (of a Series 2008 Bond) means with respect to a Series 2008 Bond issued with not more than two percent original issue discount or original issue premium, the outstanding principal amount, plus accrued unpaid interest; for any other Series 2008 Bond, its present value. "Value" (of an Investment) shall have the following meaning in the following circumstances: (1) General Rules. Subject to the special rules in the following paragraph, an issuer may determine the value of an investment on a date using one of the following valuation methods consistently applied for all purposes relating to arbitrage and rebate with respect to that investment on that date: ( a) an investment with not more than two percent original issue discount or original issue premium may be valued at its outstanding stated principal amount, plus accrued unpaid interest on such date; (b) date; and a fixed rate investment may be valued at its present value on such (c) an investment may be valued at its Fair Market Value on such date. (2) Special Rules. Yield restricted investments are to be valued at present value provided that (except for purposes of allocating Transferred Proceeds to an issue, for purposes of the Universal Cap and for investments in a commingled fund other than a bona fide debt service fund unless it is a certain commingled fund): (a) an investment must be valued at its Fair Market Value when it is first allocated to an issue, when it is disposed of and when it is deemed acquired or deemed disposed of, and provided further that; '--' A-5 (b) in the case of Transferred Proceeds, the Value of a Nonpurpose Investment that is allocated to Transferred Proceeds of a refunding issue on a transfer date may not exceed the Value of that investment on the transfer date used for purposes of applying the arbitrage restrictions to the refunded issue. "Yield on the Series 2008 Bond," "2008 Bond Yield" or "Bond Yield" means, for all Computation Dates, the Yield expected as of the date hereof on the Series 2008 Bond over the term of such Series 2008 Bond computed by: (1) using as the purchase price of the Series 2008 Bond, the amount at which such Series 2008 Bond were sold to the public within the meaning of Sections 1273 and 1274 of the Code; and (2) assuming that all of the Series 2008 Bond will be paid at their scheduled maturity dates or in accordance with any mandatory redemption requirements. "Yield" means, generally, the discount rate which, when used in computing the present value of all the unconditionally payable payments of principal and interest on an obligation and all the payments for qualified guarantees paid and to be paid with respect to such obligation, produces an amount equal to the present value of the issue price of such obligation. Present value is computed as of the date of issue of the obligation. There are, however, many additional specific rules contained in the Regulations which apply to the calculation and recalculation of yield for particular obligations and such rules should be consulted prior to calculating the yield for the Series 2008 Bond on any Computation Date. Yield shall be calculated on a 360-day year basis with interest compounded semi-annually. For this purpose the purchase price of a Nonpurpose Investment or a Tax-Exempt Investment is its Fair Market Value, as determined pursuant to Section 4 of this Statement, as of the date that it becomes allocated to Gross Proceeds of the Series 2008 Bond. SECTION 3. REBATE REQUIREMENTS. (a) The County shall pay to the United States Government at the times and in the amounts determined hereunder, the Rebatable Arbitrage. For purposes of determining the Rebatable Arbitrage, the County shall cause the calculations to be made by competent tax counselor other financial or accounting advisors or persons to ensure correct application of the rules contained in the Code and the Regulations relating to arbitrage rebate. (b) Pursuant to the Resolution, there has been established an account separate from any other fund or account established and maintained under the Resolution designated the "Rebate Fund." The County or its designated agent shall administer the '"--' A-6 ----. Rebate Fund and continuously invest all amounts held in the Rebate Fund in Federal Securities (as defined in the Resolution) or Tax-Exempt Investments. (c) Within 30 days after any Computation Date, the County shall calculate or cause to be calculated the Rebatable Arbitrage or any penalty due pursuant to Section 3(f) hereof. Immediately following such calculations, but in no event later than 60 days following the Computation Date (90 days in the case of any penalty payment due pursuant to Section 3(f) hereof), the County shall remit an amount which when added to the future value of previous rebate payments shall not be less than 90% (100% with respect to the Computation Date on the final repayment or retirement of the Series 2008 Bond) of the Rebatable Arbitrage or 100% of any penalty due pursuant to Section 3(f) hereof as of the applicable Computation Date. Each payment shall be accompanied by Internal Revenue Service Form 8038- T. (d) The obligation to pay Rebatable Arbitrage to the United States, as described herein, shall be treated as satisfied with respect to the Series 2008 Bond if (i) Gross Proceeds are expended for the governmental purpose of the Series 2008 Bond by no later than the date which is six months after the Issue Date and if it is not anticipated that any other Gross Proceeds will arise during the remainder of the term of the Series 2008 Bond and (ii) the requirement to pay Rebatable Arbitrage, if any, to the United States with respect to the portion of the Reserve Account allocable to the Series 2008 Bond is met. For purposes of the preceding sentence, Gross Proceeds do not include (i) amounts deposited in a bona fide debt service fund, so long as the funds therein constitute bona fide debt service funds, or a reasonably required reserve or replacement fund (meeting the requirements of Section 1.148-2(f) of the Regulations), (ii) amounts that, as of the Issue Date, are not reasonably expected to be Gross Proceeds but that become Gross Proceeds after the date which is six months after the Issue Date, (iii) amounts representing Sale or Investment Proceeds derived from any Purpose Investment (as defmed in Section 1.148-1 of the Regulations) and earnings on those payments, and (iv) amounts representing any repayments of grants (as defined in Section 1.148-6(d)(4) of the Regulations). If Gross Proceeds are in fact expended by such date, then, except as to the Reserve Account, Rebatable Arbitrage with respect to such Gross Proceeds need not be calculated and no payment thereof to the United States Department of Treasury need be made. Use of Gross Proceeds to redeem the Series 2008 Bond shall not be treated as an expenditure of such Gross Proceeds. Notwithstanding the foregoing, if Gross Proceeds which were reasonably expected to be Gross Proceeds on the Issue Date actually become available after the date which is six months after the Issue Date, then the requirements described herein relating to the calculation of Rebatable Arbitrage and the payment thereof to the United States must be satisfied, except that no such calculation or payment need be made with respect to the '''-..-/ A-7 "'--- initial six-month period. Any other amounts not described in this Section 3(d) which constitute proceeds of the Series 2008 Bond, other than a bona fide debt service fund, will be subject to rebate. (e) As an alternative to Section 3( d) above, the obligation of the County to pay Rebatable Arbitrage to the United States, as described herein, shall be treated as satisfied with respect to the Series 2008 Bond if (i) the rebate requirement is met for all proceeds of the Series 2008 Bond other than Gross Proceeds (as defined in Section 3(d) hereot) and (ii) the Gross Proceeds are expended for the governmental purposes of the issue within the periods set forth below: (i) at least 15% of such Gross Proceeds are spent within the six-month period beginning on the Issue Date; (ii) at least 60% of such Gross Proceeds are spent within the I-year period beginning on the Issue Date; and (iii) at least 100% of such Gross Proceeds are spent within the I8-month period beginning on the Issue Date. As set forth in Section l.I48-7(d)(2) of the Regulations, for purposes of the expenditure requirements set forth in this Section 3( e), 100% of the Gross Proceeds Issue shall be treated as expended for the governmental purposes of the issue within the 18- month period beginning on the Issue Date if such requirement is met within the 30-month period beginning on the Issue Date and such requirement would have been met within such I8-month period but for a reasonable retainage (not exceeding 5% of the Net Proceeds of the Series 2008 Bond). If Gross Proceeds are in fact expended by such dates, then Rebatable Arbitrage need not be calculated and no payment thereof to the United States Department of Treasury need be made. Any failure to satisfy the final spending requirement shall be disregarded if the County exercises due diligence to complete the project fmanced by the Series 2008 Bond and the amount of the failure does not exceed the lesser of (i) 3% of the issue price of the Series 2008 Bond or (ii) $250,000. Use of Gross Proceeds to redeem the Series 2008 Bond shall not be treated as an expenditure of such Gross Proceeds. For purposes of this Section 3(e), "Gross Proceeds" shall be L modified as described in Section 3 (d) above. THE FOLLOWING PARAGRAPH (1) SHALL NOT APPLY WITH RESPECT TO THE SERIES 2008 BOND. (t) As an alternative to Sections 3(d) and (e) above, the obligation to pay Rebatable Arbitrage to the United States, as described herein, shall be treated as satisfied with respect to the Series 2008 Bond if the Available Construction Proceeds (as defined '----' A-8 '-.....-- in Section 148(t)(4)(c)(vi) of the Code and described below) are expended for the governmental purposes of the issue within the periods set forth below: (i) at least 10% of such Available Construction Proceeds are spent within the six-month period beginning on the Issue Date; (ii) at least 45% of such Available Construction Proceeds are spent within the I-year period beginning on the Issue Date; (iii) at least 75% of such Available Construction Proceeds are spent within the eighteen-month period beginning on the Issue Date; and (iv) at least 100% of such Available Construction Proceeds are spent within the 2-year period beginning on the Issue Date. For purposes of this Section 3(t), the term Available Construction Proceeds means the Net Proceeds of the Series 2008 Bond, increased by earnings on such Net Proceeds, and earnings on all of the foregoing earnings, and reduced by the amount of such Net Proceeds deposited to the Reserve Account and amounts used to pay issuance costs. Any amounts which constitute proceeds of the Series 2008 Bond other than Available Construction Proceeds and amounts on deposit in a bona fide debt service fund will be subject to rebate. As set forth in Section 148(t)(4)(C)(iii) of the Code, for purposes of the expenditure requirements set forth in this Section 3(t), 100% of Available Construction Proceeds of the Series 2008 Bond shall be treated as expended for the governmental purposes of the issue within the 2-year period beginning on the Issue Date if such requirement is met within the 3-year period beginning on the Issue Date and such requirement would have been met within such 2-year period but for a reasonable retainage (not exceeding 5% of the Net Proceeds of the Series 2008 Bond). Use of Available Construction Proceeds to redeem the Series 2008 Bond shall not be treated as an expenditure of such Proceeds. Any failure to satisfy the final spending requirement shall be disregarded if the County exercises due diligence to complete the project financed by the Series 2008 Bond and the amount of the failure does not exceed the lesser of (i) 3% of the issue price of the Series 2008 Bond or (ii) $250,000. For purposes of Section 148(t)(4)(C)(vii) of the Code, in the event the County fails to meet the expenditure requirements referred to above, the County may elect to pay, in lieu of the Rebatable Arbitrage otherwise required to be paid with respect to such Gross Proceeds, a penalty with respect to the close of each 6-month period after the Issue Date equal to 1.5% of the amount of the Available Construction Proceeds of the Series 2008 '--/ A-9 -........- Bond which, as of the close of such period, are not spent as required by the expenditure provisions set forth above. The penalty referred to above shall cease to apply only after the Series 2008 Bond (including any refunding bonds issued with respect thereto) are no longer outstanding. The County makes no election in regard to the above-described penalty . In order to qualify for the exemption from the obligation to pay Rebatable Arbitrage to the United States pursuant to this Section 3(f), at least 75% of the Available Construction Proceeds must be used for construction expenditures (as defined in Section 1.148-7(g) of the Regulations) with respect to property which is owned by a governmental unit or an organization described in Section 50 I (c )(3) of the Code. The term "construction" includes reconstruction and rehabilitation of existing property and rules similar to the rules of Section 142(b)(1)(B) of the Code shall apply. If only a portion of an issue is to be used for construction expenditures, such portion and the other portion of such issue may, at the election of the issuer, be treated as separate issues for purposes of this Section 3(f) (although the remaining portion may not be entitled to the benefits of Section 3( d) hereof). The County does not elect to treat any portion of the Series 2008 Bond as a separate issue. (g) The County shall keep proper. books of records and accounts containing complete and correct entries of all transactions relating to the receipt, investment, disbursement, allocation and application of the moneys related to the Series 2008 Bond, including moneys derived from, pledged to, or to be used to make payments on the Series 2008 Bond. Such records shall, at a minimum, be adequate to enable the County or its consultants to make the calculations for payment of Rebatable Arbitrage as required by this Statement. The records required to be maintained under this Section 3(g) shall be retained by the County until six years after the retirement of the last obligation of the Series 2008 Bond or for such other period as the United States Treasury may by regulations otherwise provide. Such records shall at least specify the account or fund to which each investment (or portion thereof) is to be allocated and shall set forth, in the case of each investment security, (i) its purchase price (including the amount of accrued interest to be stated separately), (ii) identifying information, including par amount, coupon rate, and payment dates, (iii) the amount received at maturity or its sale price, as the case may be, including accrued interest, (iv) the amounts and dates of any payments made with respect thereto, (v) the dates of acquisition and disposition or maturity, (vi) the amount of original issue discount or premium (if any), (vii) the frequency of periodic payments (and actual dates and amounts of receipts), (viii) the period of compounding, (ix) the transaction costs (e.g., commissions) incurred in acquiring, carrying or disposing of the Nonpurpose Investments, and (x) market price data sufficient to establish that the purchase price (disposition price) was not greater than (less than) the arm's-length price (see Section 4 below) on the date of acquisition (disposition) or, if earlier, on the date of a binding contract to acquire (dispose of) such Nonpurpose Investment. ---... . A-IO ,-- SECTION 4. MARKET PRICE RULES. Except as provided below, the County agrees to comply with the requirements relating to the "Fair Market Value" of acquired Nonpurpose Investments, as defined in Section 1.148-5(d) of the Regulations ("Fair Market Value"). All investments required to be made pursuant to this Statement shall be made to the extent permitted by law. In this regard, the County agrees, among other things, that it will not acquire or cause to be acquired a Nonpurpose Investment (or any other investment acquired with Gross Proceeds or on deposit in the Rebate Fund) for a price in excess of its Fair Market Value or sell any such investment at a price (determined without any reduction for transaction costs) less than its Fair Market Value, except as provided below. For this purpose, the following rules shall apply: (a) Established securities markets. Except as otherwise provided below, any market especially established to provide a security or obligation to an issuer of municipal obligations shall not be treated as an established market and shall be rebuttably presumed to be acquired or disposed of for a price that is not its Fair Market Value. (b) Arm's-length price. Any transaction in which a Nonpurpose Investment is directly purchased with Gross Proceeds, or in which a Nonpurpose Investment allocable to Gross Proceeds is disposed of, shall be undertaken in an arm's-length manner, and no amount shall be paid to reduce the yield on the Nonpurpose Investment. (c) Safe harbor for establishing Fair Market Value for guaranteed investment contracts and Nonpurpose Investments purchased for a yield restricted defeasance escrow. In the case of a guaranteed investment contract or Nonpurpose Investments purchased for a yield restricted defeasance escrow, the purchase price shall not be considered to be an arm's-length price unless all the following conditions are met: (i) The County makes a bona fide solicitation ("Bona Fide Solicitation") for the purchase of the investment that satisfies all of the following requirements: (1) The bid specifications are in writing and are timely forwarded to potential providers; (2) The bid specifications include all terms of the bid that may directly or indirectly affect the yield or the cost of the investment; (3) The bid specifications include a statement notifying potential providers that submission of a bid is a representation that the potential provider did not consult with any other potential provider about its bid, that the bid was determined without regard to any other formal or informal agreement that the potential provider has with the County or any other person (whether or not in connection with the bond issue), and that the bid "-'-" A-ll "'--- - is not being submitted solely as a courtesy to the County or any other person for purposes of satisfYing these requirements; (4) The terms of the bid specifications are such that there is a legitimate business purpose for each term other than to increase the purchase price or reduce the yield of the investment (e.g., for solicitations of Nonpurpose Investments for a yield restricted defeasance escrow, the hold firm period must be no longer than the County reasonably requires); (5) For purchases of guaranteed investment contracts only, the terms of the solicitation take into account the County's reasonably expected deposit and draw down schedule for the amounts to be invested; (6) All potential providers have an equal opportunity to bid (e.g., no potential provider is given the opportunity to review other bids before providing a bid); and (7) At least three providers are solicited for bids that have an established industry reputation as a competitive provider of the type of investments being purchased. (ii) The bids received by the County must meet all of the following requirements: (1) The County receives at least three bids from providers that the County solicited under a Bona Fide Solicitation and that do not have a material financial interest in the issue. A lead underwriter in a negotiated underwriting transaction is deemed to have a material [mancial interest in the issue until 15 days after the issue date of the issue. In addition, any entity acting as a financial advisor with respect to the purchase of the investment at the time the bid specifications are forwarded to potential providers has a material financial interest in the issue. A provider that is a related party to a provider that has a material financial interest in the issue is deemed to have a material [mancial interest in the issue. (2) At least one of the three bids described in paragraph (c) (ii)(I) above is from a provider that has an established industry reputation as a competitive provider of the type of investments being purchased; and (3) If the County uses an agent to conduct the bidding process, the agent did not bid to provide the investment. (iii) The winning bid must meet the following requirements: --- A-12 '''--' (I) Guaranteed investment contracts. If the investment is a guaranteed investment contract, the winning bid is the highest yielding bona fide bid (determined net of any broker's fees). (2) Other Nonpurpose Investments. If the investment is not a guaranteed investment contract, the following requirements are met: (A) The winning bid is the lowest cost bona fide bid (including any broker's fees). The lowest bid is either the lowest cost bid for the portfolio or, if the County compares the bids on an investment-by-investment basis, the aggregate cost of a portfolio comprised of the lowest cost bid for each investment. Any payment received by the County from a provider at the time a guaranteed investment contract is purchased (e.g., an escrow float contract) for a yield restricted defeasance escrow under a bidding procedure meeting these requirements is taken into account in determining the lowest cost bid. (B) The lowest cost bona fide bid (including any broker's fees) is not greater than the cost of the most efficient portfolio comprised exclusively of State and Local Government Series Securities from the United States Department of the Treasury, Bureau of Public Debt. The cost of the most efficient portfolio of State and Local Government Series Securities is to be determined at the time that bids are required to be submitted pursuant to the terms of the bid specifications. If such State and Local Government Series Securities are not available for purchase on the day that bids are required to be submitted because sales of those securities have been suspended, the cost comparison described in this paragraph is not required. (iv) The provider of the investments or the obligor on the guaranteed investment contract certifies the administrative costs that it pays (or expects to pay) to third parties in connection with supplying the investment. (d) The County shall retain certificates and records documenting compliance with the above requirements until three years after the last outstanding Series 2008 Bond is redeemed including, but not limited to, the following: (i) For purchases of guaranteed investment contracts, a copy of the contract, and for purchases of Nonpurpose Investments other than guaranteed investment contracts, the purchase agreement or confirmation; --- A-13 '---~ (ii) The receipt or other record of the amount actually paid by the County for the investments, including a record of any administrative costs paid by the County and the certification required in paragraph (c)(iv) above; (iii) For each bid that is submitted, the name of the person and entity submitting the bid, the time and date of the bid, and the bid results; (iv) The bid solicitation form and, if the terms of the purchase agreement or the guaranteed investment contract deviated from the bid solicitation form or a submitted bid is modified, a brief statement explaining the deviation and stating the purpose for the deviation; and (v) For purchase of Nonpurpose Investments other than guaranteed investment contracts, the cost of the most efficient portfolio of State and Local Government Series Securities, determined at the time that the bids were required to be submitted. SECTION 5. MODIFICATION UPON RECEIPT OF BOND COUNSEL OPINION. Notwithstanding any provision of this Statement, if the County shall receive an opinion of Bond Counsel that any specified action required under this Statement is no longer required or that some further or different action is required to maintain or assure the exclusion from federal gross income of interest with respect to the Series 2008 Bond, the County may conclusively rely on such opinion in complying with the requirements of this Statement and the covenants herein shall be deemed to be modified to that extent. This Statement shall be amended or modified by the parties hereto in any manner which is necessary to comply with such regulations as may be promulgated by the United States Treasury Department from time to time. SECTION 6. ACCOUNTING FOR GROSS PROCEEDS. In order to perform the calculations required by the Code and the Regulations, it is necessary to track the investment and expenditure of all Gross Proceeds. To that end, the County must adopt reasonable and consistently applied methods of accounting for all Gross Proceeds. Appendix I hereto sets forth a description of the required allocation and accounting rules with which the County agrees to comply. SECTION 7. ADMINISTRATIVE COSTS OF INVESTMENTS. Except as otherwise provided in this Section 7, an allocation of Gross Proceeds to a payment or receipt on a Nonpurpose Investment is not adjusted to take into account any costs or expenses paid, directly or indirectly, to purchase, carry, sell or retire the Nonpurpose Investment (administrative costs). Thus, administrative costs generally do not increase the payments for, or reduce the receipts from, Nonpurpose Investments. _.- A-14 ----' In determining payments and receipts on Nonpurpose Investments, Qualified Administrative Costs are taken into account by increasing payments for, or reducing the receipts from, the Nonpurpose Investments. Qualified Administrative Costs are reasonable, direct administrative costs, other than carrying costs, such as separately stated brokerage or selling commissions, but not legal and accounting fees, recordkeeping, custody and similar costs. General overhead costs and similar indirect costs of the County such as employee salaries and office expenses and costs associated with computing Rebatable Arbitrage are not Qualified Administrative Costs. Allocation and accounting rules are provided in Appendix I attached hereto. -......- A-I5 APPENDIX I ALLOCATION AND ACCOUNTING RULES (a) General Rule. Any issuer may use any reasonable, consistently applied accounting method to account for Gross Proceeds, investments and expenditures of an issue. An accounting method is "consistently applied" if it is applied uniformly within a Fiscal Period (as hereinafter defmed) and between Fiscal Periods to account for Gross Proceeds of an issue and any amounts that are in a commingled fund. (b) Allocation of Gross Proceeds to an Issue. Amounts are allocable to only one issue at a time as Gross Proceeds. Amounts cease to be allocated to an issue as Proceeds only when those amounts (i) are allocated to an expenditure for a governmental purpose; (ii) are allocated to Transferred Proceeds of another issue of obligations; or (iii) cease to be allocated to that issue at retirement of the issue or under the Universal Cap. ( c) Allocation of Gross Proceeds to Investments. Upon the purchase or sale of a Nonpurpose Investment, Gross Proceeds of an issue are not allocated to a payment for that Nonpurpose Investment in an amount greater than, or to a receipt from that Nonpurpose Investment in an amount less than, the Fair Market Value of the Nonpurpose Investment as of the purchase or sale date. The Fair Market Value of a Nonpurpose Investment is adjusted to take into account Qualified Administrative Costs allocable to the investment. Thus, Qualified Administrative Costs increase the payments for, or decrease the receipts from, a Nonpurpose Investment. (d) Allocation of Gross Proceeds to Expenditures. Reasonable accounting methods for allocating funds from different sources to expenditures for the same governmental purpose include a "specific tracing" method, a "gross-proceeds-spent-first" method, a "first-in-first-out" method or a ratable allocation method, so long as the method used is consistently applied. An allocation of Gross Proceeds of an issue to an expenditure must involve a current outlay of cash for a governmental purpose of the issue. A current outlay of cash means an outlay reasonably expected to occur not later than five banking days after the date as of which the allocation of Gross Proceeds to the expenditure is made. (e) Commingled Funds. Any fund or account that contains both Gross Proceeds of an issue and amounts in excess of $25,000 that are not Gross Proceeds of that issue if the amounts in the fund or account are invested and accounted for collectively, without regard to the source of the funds deposited therein, constitutes a "commingled fund." All payments and receipts (including deemed payments and receipts) on investments held by a commingled fund must be allocated (but not necessarily distributed) among each different source of funds invested in the commingled fund in -~- A-I-l accordance with a consistently applied, reasonable ratable allocation method. Reasonable ratable allocation methods include, without limitation, methods that allocate payments and receipts in proportion to either (i) the average daily balances of the amounts in the commingled fund from each different source of funds during any consistent time period within its fiscal year, but at least quarterly (the "Fiscal Period"); or (ii) the average of the beginning and ending balances of the amounts in the commingled fund from each different source of funds for a Fiscal Period that does not exceed one month. Funds invested in the commingled fund may be allocated directly to expenditures for governmental purposes pursuant to a reasonable consistently applied accounting method. If a ratable allocation method is used to allocate expenditures from the commingled fund, the same ratable allocation method must be used to allocate payments and receipts on investments in the commingled fund. Generally a commingled fund must treat all its investments as if sold at Fair Market Value either on the last day of the fiscal year or on the last day of each Fiscal Period. The net gains or losses from these deemed sales of investments must be allocated to each different source of funds invested in the commingled fund during the period since the last allocation. This mark-to-market requirement does not apply if (i) the remaining weighted average maturity of all investments held by a commingled fund during a particular fiscal year does not exceed 18 months, and the investments held by the commingled fund during that fiscal year consist exclusively of obligations; or (ii) the commingled fund operated exclusively as a reserve fund, sinking fund or replacement fund for two or more issues of the same issuer. Subject to the Universal Cap limitation, and the principle that amounts are allocable to only one issue at a time as Gross Proceeds, investments held by a commingled fund must be allocated ratably among the issues served by the commingled fund in proportion to either (i) the relative values of the bonds of those issues; (ii) the relative amounts of the remaining maximum annual debt service requirements on the outstanding principal amounts of those issues; or (iii) the relative original stated principal amounts of the outstanding issues. (f) Universal Cap. Amounts that would otherwise be Gross Proceeds allocable to an issue are allocated (and remain allocated) to the issue only to the extent that the Value of the Nonpurpose Investments allocable to those Gross Proceeds does not exceed the Value of all outstanding bonds of the issue. Nonpurpose Investments allocated to Gross Proceeds in a bona fide debt service fund for an issue are not taken into account in determining the Value of the Nonpurpose Investments, and those Nonpurpose Investments remain allocated to the issue. To the extent that the Value of the Nonpurpose Investments allocable to the Gross Proceeds of an issue exceed the Value of all outstanding bonds of that issue, an issuer should seek the advice of Bond Counsel for the procedures necessary to comply with the Universal Cap. '"'-" - A-I-2 (g) Expenditure for Working Capital Purposes. Subject to certain exceptions, the Proceeds of an issue may only be allocated to "working capital expenditures" as of any date to the extent that those expenditures exceed "available amounts" as of that date (i.e., "proceeds-spent-Iast"). F or purposes of this section, "working capital expenditures" include all expenditures other than "capital expenditures." "Capital expenditures" are costs of a type properly chargeable (or chargeable upon proper election) to a capital account under general federal income tax principles. Such costs include, for example, costs incurred to acquire, construct or improve land, buildings and equipment having a reasonably expected useful life in excess of one year. Thus, working capital expenditures include, among other things, expenditures for current operating expenses and debt service. For purposes of this section, "available amount" means any amount that is available to an issuer for working capital expenditure purposes of the type financed by the issue. Available amount excludes Proceeds of the issue but includes cash, investments and other amounts held in accounts or otherwise by an issuer for working capital expenditures of the type being fmanced by the issue without legislative or judicial action and without a legislative, judicial or contractual requirement that those amounts be reimbursed. Notwithstanding the preceding sentence, a "reasonable working capital reserve" is treated as unavailable. A working capital reserve is reasonable if it does not exceed five percent of the actual working capital expenditures of an issuer in the fiscal year before the year in which the determination of available amounts is made. For purpose of the preceding sentence only, in determining the working capital expenditures of an issuer for a prior fiscal year, any expenditures (whether capital or working capital expenditures) that are paid out of current revenues may be treated as working capital expenditures. The proceeds-spent-Iast requirement does not apply to expenditures to pay (i) any Qualified Administrative Costs; (ii) fees for qualified guarantees of the issue or payments for a qualified hedge for the issue; (iii) interest on the issue for a period commencing on the Issue Date and ending on the date that is the later of three years from the Issue Date or one year after the date on which the financed project is placed in service; (iv) the United States for yield reduction payments (including rebate payments) or penalties for the failure to meet the spend down requirements associated with certain spending exceptions to the rebate requirement; (v) costs, other than those described in (i) through (iv) above, that do not exceed five percent of the Sale Proceeds of an issue and that are directly related to capital expenditures financed by the issue (e.g., initial operating expenses for a new capital project); (vi) principal or interest on an issue paid from unexpected excess sale or Investment Proceeds; (vii) principal or interest on an issue paid from investment earnings on a reserve or replacement fund that are deposited in a bona fide debt service fund; and (viii) principal, interest or redemption premium on a prior ~- A-I-3 '------ issue and, for a crossover refunding issue, interest on that issue. Notwithstanding the preceding paragraph, the exceptions described above do not apply if the allocation merely substitutes Gross Proceeds for other amounts that would have been used to make those expenditures in a manner that gives rise to Replacement Proceeds. ,-,- A-I-4 EXHffiIT B FINANCIAL ADVISOR'S CERTIFICATE The undersigned, acting on behalf of Public Financial Management, Inc., Financial Advisor with respect to the $13,244,204 Collier County, Florida Limited General Obligation Bond (Conservation Collier Program), Series 2008 (the "Series 2008 Bond"), hereby certifies to Collier County, Florida (the "County") that the 2008 Bond Yield as described in the hereafter defined Arbitrage Certificate is accurate as of the date hereof. We understand that the representations set forth above are being relied on by the County in the County's Certificate as to Arbitrage and Certain Other Tax Matters (the "Arbitrage Certificate"). Capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the Arbitrage Certificate. Dated: November 21,2008 PUBLIC FINANCIAL MANAGEMENT, INC. By: '-./ 7 '-- CERTIFICATE REQUIRED BY SECTION 5.01(B) OF THE RESOLUTION The undersigned, Tom Henning, Chairman of the Board of County Commissioners of Collier County, Florida (the "County"), is delivering this Certificate pursuant to Section 5.0l(B) of Resolution No. 2004-383, adopted by the County on December 14, 2004, as supplemented (collectively, the "Resolution"), in connection with the issuance by the County of its Limited General Obligation Bond (Conservation Collier Program), Series 2008 (the "Series 2008 Bond"). All terms not otherwise defined herein shall have the meanings ascribed thereto in the Resolution. I hereby certify on behalf of the County as follows: (A) No Event of Default has occurred and is continuing under the Resolution. (B) The Limited Ad Valorem Tax that would have been collected by the Issuer for the Fiscal Year ended September 30, 2008, had the full one-quarter (1/4) of one mill been levied, is equal to $20,635,523 greater than 1.00 times the Maximum Annual Debt Service of the Series 2008 Bond and all Bonds Outstanding under the Resolution as of the date hereof. See attached schedule. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the County as of this 21st day of November, 2008. .,' ." '''-'.J , 't + J ; . .., ~ ..._-"', l. - ........ . .::' ~ ." .' ". ,; 4. --:r '..~ :: ..... (SEAL) ( . ,...~. . [ S;;.i'~,.;.~~:/ }.{.:':: ..r;'> _..~\>s \ ... --, "~*I ~.. .- ~ \ ~-,'~~~, .. p'. ~~ "'" = ,. ./;.'. ,'" "'" ., '" ,,-.., .... .<"...... ,....:- Tom Henning, Chai Commissioners oard of County ~ :'1" ~~-i7C Deputy (:ounty Attorney ,---- ,---"LIER COUNTY, FLORIDA LIMTED GENERAL OBLIGATION BONDS (CONSERVATION COLLIER PROGRAM) Series 2005A Pmposed Series 2008 .Ag~elZate Debt Service Period Ending Principal Interest Debt Service Principal Interest Debt Service Principal Interest Debt Service 1/1/2009 4,030,000.00 1,015,150.00 5,045,150.00 - - - 4,030,000.00 1,015,150.00 5,045,150.00 1/1/2010 4,150,000.00 894,250.00 5,044,250.00 3,067,279.00 608,939.07 3,676,218.07 7,217,279.00 1,503,189.07 8,720,468.07 1/1/2011 4,355,000.00 686,750.00 5,041,750.00 3,257,597.00 421,121.16 3,678,718.16 7,612,597.00 1,107,871.16 8,720,468.16 1/1/2012 4,575,000.00 469,000.00 5,044,000.00 3,390,147.00 286,321.80 3,676,468.80 7,965,147.00 755,321.80 8,720,468.80 1/1/2013 4,805,000.00 24D,250.oo 5,045,250.00 3,529,181.00 146,037.50 3,675,218.50 8,334,181.00 386,287.50 8,720,468.50 TOTAL 21,915,000.00 3,305,400.00 25,220,4D0.00 13,244,204.00 1,462,419.53 14,706,623.53 35,159,204.00 4,767,819.53 39,927,023.53 MADS 8,720,468.80 Taxable Value FY 2008 Taxable Value FY 2009 $ $ 82,542,090,227 .25 mills 79,175,284,679 .25 mills $ $ 20,635,523 19,793,821 '-- 8 '--- CERTIFICATE AS TO SPECIMEN BOND I, Derek M. Johnssen, the undersigned Deputy Clerk of the Board of County Commissioners of Collier County, Florida (the "County") DO HEREBY CERTIFY that attached hereto as Exhibit A is a specimen of the $13,244,204 Collier County, Florida Limited General Obligation Bond (Conservation Collier Program), Series 2008 (the "Series 2008 Bond"), dated as of November 21, 2008, which specimen is identical in all respects with said Series 2008 Bond this day delivered to the initial purchaser thereof. IN WITNESS WHEREOF, I have hereunto set my hand as of this 21st day of November, 2008. p L---- uty Clerk of the Board of County Commissioners of Collier County, Florida ""-...--- '--"' No. R-l $13,244,204.00 UNITED STATES OF AMERICA COLLffiRCOUNT~FLORIDA LIMITED GENERAL OBLIGATION BOND (CONSERVATION COLLffiR PROGRAM), SERIES 2008 Maturity Date Date of Original Issue Interest Rate 4.138% January 1,2013 Registered Holder: SUNlRUST EQUIPMENT FINANCE & LEA Principal Amount: ORTY-FOUR NO/100 DOLLARS KNOW ALL MEN BY THESE ENTS, that Collier County, Florida, a political subdivision of the State of Florida "Issuer"), for value received, hereby promises to pay to the Registered er ide ed above, or registered assigns as hereinafter provided, on the Ma ity Da e identified above, the Principal Amount identified above and to pay intere n suc Principal Amount from the Date of Original Issue identified above or from the ent interest payment date to which interest has been paid at the Interest e er annum. identified above on January 1 and July 1 of each year, commencing Jul 2 , til such Principal Amount shall have been paid. The Interest Rate shall be ca te on a 30/360-day basis and is subject to adjustment as provided in the lution. ch Principal Amount and interest on this Bond are payable in any coin or y of the United States of America which, on the respective dates of .I payment there 11 be legal tender for the payment of public and private debts. The Paying gent an istrar for the Bond shall be the Issuer. '-...-/ nd is issued to finance the acquisition of certain environmentally sensitive lands WI the County, as more particularly described in the hereinafter defmed Resoluti ,. and in full compliance with the Constitution and Statutes of the State of Florida, including particularly Chapter 125, Florida Statutes, Article VII, Section 12 of the Florida Constitution, Ordinance No. 2004-78, enacted by the Board of County Commissioners of the County (the "Board") on December 14, 2004, as it may be amended or supplemented from time to time, Resolution No. 2002-265 adopted by the Board on June 11, 2002 and Resolution No. 2004-383 adopted by the, Board on December 14, 2004 (the "Resolution"), as it may be amended or supplemented from time to time, and is subject to all the terms and conditions of such Resolution. "'---' In accordance with the terms of the Resolution, the Issuer has made a limited pledge of its faith, credit and taxing power for the full and prompt payment of the principal of and interest on the Bonds. A direct annual tax shall be levied, not in excess of one quarter (1/4) of one mill, upon all taxable property within the Issuer to make such payments. Provision shall be included and made in the annual budget and tax levy for the levy of such taxes, which tax shall be levied and collected at the same time, and in the same manner, as other ad valorem taxes of the Issuer are assessed, levied and collected. 2010 2011 2012 2013* Amortization Installments The Bond will be subject to mandatory sinking fund redemption in the fo Amortization Installments commencing on January 1, 2010 and on thereafter through the maturity date. Year January 1 *Final Maturity A debt service schedule for Notwithstanding any othe the Issuer shall not be required to holder of this Bond any notice of redemption with respect to the sched paymen of such Amortization Installments. This Bond is sore mption, in whole or in part, at any time or from time to time by paying to the ho ereof the principal amount of the Bond to be prepaid, together with paid in rest accrued on the amount of principal so redeemed to the date of suc tion, plus a redemption premium equal to three percent (3.00%) of the principal t so redeemed. redemption of the Bond shall be made on such date and in such principal am 11 be specified by the Issuer in a notice delivered to the holder of the Bond not less thirty (30) days prior thereto specifying the principal amount of the Bond to be redeemed and the date of such redemption. So long as the Issuer provides such notice of redemption, the provisions of Section 3.03 of the Resolution shall not apply with respect to the this Bond. Upon any redemption as provided in the Resolution, the holder of the Series 2008 Bond and the Issuer shall mutually agree to a revised amortization of the outstanding principal amount, if any, of such Bond and the holder of the Bond shall '_ / provide the Issuer with evidence of such revised amortization. 2 / '--_ Reference to the Resolution is hereby made for a description of the funds charged with and pledged to the payment of the principal of and interest on the Bonds, the nature and extent of the security for the payment of the Bonds, a statement of the rights, duties and obligations of the Issuer, the rights of the Holders of the Bonds, to all the provisions of which Resolution the holder hereof by the acceptance of this Bond assents. It is hereby certified and recited that all acts, conditions and things required to exist, to happen and to be performed precedent to and in the issuance of this B exist, have happened and have been performed in regular and due form and time as requ by the laws and Constitution of the State of Florida applicable thereto, and e of the Bonds of this issue does not violate any constitutional, statutory, charter limitation or provision, and that provision has been made for the ection 0, a direct annual tax, not in excess of one quarter (1/4) of one mill, upon in the Issuer taxable for such purpose sufficient to pay and discharge.the princip at maturity. IN WITNESS WHEREO caused the same to be signed by th an of its Board of County Commissioners and attested to by the Clerk e Circuit Court for Collier County, Florida and Ex-Officio Clerk of the Board of 0 issioners and its official seal to be impressed hereon, all as of the 21 st day of b , 2008. lder her of in person or by s office of the Registrar e Resolution and upon The transfer of this Bond is registrable by the Bo his attorney or legal representative at the designated corpo but only in the manner and subject to the conditio J surrender and cancellation of this Bond. This Bond shall not be valid or beco any benefit or security under the Resolution un execution by the Registrar of the ce. te of au ligato for any purpose or be entitled to .t hall have been authenticated by the ntication endorsed hereon. , '..,.~. " .. " \ " I ( l . , . , I . . ~~~4)- COLLIER COUNTY, FLORIDA BYPY: ~ Chairman, Board of C~ty Commissioners :...... ." - .-,.,.. . _. ' ;"-.'- ('""~ - cuit Co or Collier Co Flori and Ex-Officio Clerk of the Board of County Commissioners ~1r~1~~~ ....., CoBty AU......, "-/ 3 ASSIGNMENT AND TRANSFER '-....- FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto (Please insert Social Security or other identifying number of assignee) the attached Bond of Collier County, Florida, and does hereby constitute and appoint attorney, to transfer the said Bond on the books kept for registration thereof power of substitution in the premises. Signature Guaranteed by: Date: NOTICE: Signature must be guaranteed by an institution which is a participant in the . Securities Transfer Agent Medallion Program (STAMP) or similar program. NO CE: The signature to this assignment must correspond with the name of the Registered Holder as it appears upon the face of the within Bond in every particular, without alteration or enlargement or any change whatever and the Social Security or other identifying number of such assignee must be supplied. ........, 4 ......~ Collier County, Florida Limited General Obligation Bond (Conservation Collier Program), Series 2008 Debt Service Schedule Period Ending Principal Coupon Interest Debt Service 07/01/2009 334,916.49 01/01/2010 3,067;179 4.138% 274,022.58 07/01/2010 210,560.58 01/0112011 3,257,597 4.138% 210,560.58 07/01/2011 143,160.90 01101/2012 3,390,147 4.138% 143,160.90 07/01/2012 73,018.75. 01/01/2013 3,529,181 4.138% 73,018.75 13;144,204 1,462,419.53 \, . - 9 , -' CERTIFICATE OF DELIVERY AND PAYMENT November 21,2008 Board of County Commissioners of Collier County, Florida Naples, Florida Gentlemen: We have transferred to you herewith an amount equal to $13,238,704 (par amount of $13,244,204, less $5,500 for our legal expenses) being payment for your Limited General Obligation Bond (Conservation Collier Program), Series 2008 (the "Series 2008 Bond"), received today from you by the undersigned. Such amount shall be wired to your account at Fifth Third Bank. The undersigned hereby acknowledges delivery of said Series 2008 Bond. SUNTRUST EQUIPMENT FINANCE & LEASING CORP. By: ~~~ D.S. Keough, Vice President .. Please acknowledge receipt of the foregoing deposit by signing and returning the original or a counterpart of this letter. COLLIER COUNTY, FLORIDA Deputy Clerk of the Board of County Commissioners of Collier County, Florida , ~~- 9 -- CERTIFICATE OF DELIVERY AND PAYMENT November 21,2008 Board of County Commissioners of Collier County, Florida Naples, Florida Gentlemen: We have transferred to you herewith an amount equal to $13,238,704 (par amount of $13,244,204, less $5,500 for our legal expenses) being payment for your Limited General Obligation Bond (Conservation Collier Program), Series 2008 (the "Series 2008 Bond"), received today from you by the undersigned. Such amount shall be wired to your account at Fifth Third Banle The undersigned hereby acknowledges delivery of said Series 2008 Bond. SUNTRUST EQUIPMENT FINANCE & LEASING CORP. By: D.S. Keough, Vice President Please acknowledge receipt of the foregoing deposit by signing and returning the original or a counterpart of this letter. ep Clerk of the Board 0 ty Commissioners of Collier County, Florida Form 8038-6 Information Return for Tax-Exempt Governmental Obligations ~ Under Internal Revenue Code section 149(e) ~ See separate Instructions. Caution: If the issue price is under $100,000, use Form B03B-GC. If Amended Return, check here ~ 0 Z Issuer's employer identification number 59 : 6000558 Room/suite 4 Report number 3 05 6 Date of issue 11/21/2008 OMS No. 1545-0720 \.._~ (Rev. November 2000) Department of the Treasury Internal Revenue Service \.._/ Sign Here 3 Re ortin Issuer's name Collier County, Florida Number and street (or P.O. box if mail is not delivered to street address) 3301 East Tamiami Trail 5 City, town, or post office, state, and ZIP code Naples, Florida 33962 Name of issue Collier County, Florida Limited General Obligation Bond (Conservation Collier Program), Series 2008 Name and title of officer or legal representative whom the IRS may call for more information 10 Steven E. Miller, Esq., Bond Counsel T e of Issue (check a o Education o Health and hospital o Transportation . o Public safety. . ~ Environment (including sewage bonds) .. o Housing . . . o Utilities o Other. Describe ~ If obligations are TANs or RANs, check box ~ 0 If obligations are BANs, check box ~ 0 If obli ations are in the form of a lease or installment sale, check box ~ 0 Descri lion of Obli ations. Com lete for the entire issue for which this form is bein 13,244,204.00 7 8 CUSIP number N/A 9 Telephone number of officer or legal representative ( 813 ) 281-2222 licable box(es) and enter the issue rice) See instructions and attach schedule 11 12 13 14 15 16 17 18 (c) Stated redemption price at maturity (d) Weighted average maturity (e) Yield 2.668 ears 4.135727 % 22 23 24 25 26 27 28 29 30 1/1/2013 $13,244,204 Uses of Proceeds of Bond Issue Proceeds used for accrued interest . . Issue price of entire issue (enter amount from line 21, column (b)) . Proceeds used for bond issuance costs (including underwriters' discount) Proceeds used for credit enhancement. . Proceeds allocated to reasonably required reserve or replacement fund Proceeds used to currently refund prior issues Proceeds used to advance refund prior issues Total (add lines 24 through 28). .. Nonrefundin roceeds of the issue subtract line 29 from line 23 and enter amount here.. . Descri tion of Refunded Bonds (Com lete this art onl for refundin bonds.) Enter the remaining weighted average maturity of the bonds to be currently refunded .. ~ Enter the remaining weighted average maturity of the bonds to be advance refunded . ~ Enter the last date on which the refunded bonds will be called . . ~ Enter the date(s) the refunded bonds were issued ~ Miscellaneous Enter the amount of the state volume cap allocated to the issue under section 141 (b)(5) Enter the amount of gross proceeds invested or to be invested in a guaranteed investment contract (see instructions) Enter the final maturity date of the guaranteed investment contract ~ Pooled financings: a Proceeds of this issue that are to be used to make loans to other governmental units 37a If this issue is a loan made from the proceeds of another tax-exempt issue, check box ~ 0 and enter the name of the issuer ~ and the date of the issue ~ If the issuer has designated the issue under section 265(b)(3)(B)(i)(II1) (small issuer exception), check box ~ 0 If the issuer has elected to pay a penalty in lieu of arbitrage rebate, check box ~ 0 If the issuer has identified a hed e, check box ~ 0 Under penalties of perjury, I declare hat I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are e. correct. a complete. 44,204.00 13,200,000.00 -0- 13,244,204.00 24 25 26 27 28 44,204.00 -0- -0- -0- -0- 31 32 33 34 N/A N/A 35 36a b 37 b N/A 38 39 40 11/21/08 Tom Henning, Chairman, Board of County .. Commissioners ,. Type or print name and title Date age 2 of the Instructions. cl! * AMista.Dt County Attol'1lq Bond Finance - Local Bond Monitoring: Notice of Sale Confirmation Page 1 of 1 STATE OF FLORIDA - DIVISION OF BOND FINANCE LOCAL BOND MONITORING '--- Hon18 L:, gou t NOTICE OF SALE STATUS Notice of Sale submission successful. SUBMIT DATE: 10/30/2008 SALE DATE: CLOSING DATE: Collier County, Florida Limited General Obligation Bond (Conservation Collier Program), Series 2008 11/18/2008 11/20/2008 BOND ISSUE NAME: f>.c[nt this_p-age '-- https:/ /www.sbafla.comlissue/nosprocess.aspx?redirectPage=nosprocess.aspx 10/30/2008 Bond Finance - Local Bond Monitoring: Print Form , .....- NAME OF GOVERNMENTAL UNIT Collier County, Florida MAILING ADDRESS OF GOVERNMENTAL UNIT OR ITS MANAGER Address(l) 3301 East Tamiami Trail Address(2) City Naples State FL Zip 34112 COUNT(IES) IN WHICH GOVERNMENTAL UNIT HAS JURISDICTION Collier TYPE OF ISSUER County Is THE ISSUER A COMMUNITY DEVELOPMENT DISTRICT? n ISSUE NAME AMOUNT Collier County, Florida Limited General Obligation Bond (Conservation Collier Program), Series 2008 AMOUNT AUTHORIZED $13,244,204.00 $21,000,000.00 DATED DATE (MMlDD/YYYY) 11/21/2008 SALE DATE (MMlDD/VYYY) 11/21/2008 DELIVERY DATE (MMlDD/YYYY) 11/21/2008 LEGAL AUTHORITY FOR ISSUANCE Ch. 125, F.S. TYPE OF ISSUE General Obligation Is THIS A PRIVATE ACTIVITY BOND (PAB)? Did This Issue Receive a PAB Allocation? Amount of Allocation $0.00 SPECIFIC REVENUES{S) PLEDGED Primary Ad Va lorem Taxes Secondary -.........- Other https://bondissue.sbafla.com/print.aspx?print_id=2026 INTEREST CALCULATION Arbitrage Yield YIELD 4.135727 Page 1 of5 11/1812008 Bond Finance - Local Bond Monitoring: Print Form Page 2 of5 ............. PURPOSE(S) OF THE ISSUE Primary Env. Sensitive Land Purchase Secondary Other Is THIS A REFUNDING ISSUE? III REFUNDED DEBT HAS BEEN DID THE REFUNDING ISSUE CONTAIN NEW MONEY? ApPROXIMATELY WHAT PERCENTAGE OF PROCEEDS IS NEW MONEY? TYPE OF SALE Negotiated INSURANCEfENHANCEMENTS No Credit Enhancement RATING(S) Moody's NR S&P NR Fitch NR Other DEBT SERVICE SCHEDULE PROVIDED BY E-mail OPTIONAL REDEMPTION PROVISIONS PROVIDED BY E-mail -- PROVIDE THE NAME AND ADDRESS OF THE SENIOR MANAGING UNDERWRITER OR SOLE PURCHASER Underwriter SunTrust Equipment Finance & Leasing Corp. Address(l) 300 E. Joppa Road Address(2) Suite 700 City Towson State M D Zip 21286 CO-Underwriter None Address( 1 ) Address(2) City State Zip PROVIDE THE NAME(S) AND ADDRESS(ES) OF ANY ATTORNEY OR FINANCIAL CONSULTANT WHO ADVISED https:/lbondissue.sbafla.com/print.aspx?print_id=2026 11/18/2008 Bond Finance - Local Bond Monitoring: Print Form Page 3 of5 ""'--' THE UNIT OF LOCAL GOVERNMENT WITH RESPECT TO THE BOND ISSUE. Bond Counsel Address(l) Address(2) City State Zip CO-Bond Counsel Address( 1 ) Address(2) City State Zip Financial Advisor/Consultant Nabors, Giblin & Nickerson 2502 Rocky Point Drive Suite 1060 Tampa FL 33607 None Address( I) Address(2) City State Zip Public Financial Management, Inc. 12730 New Brittany Boulevard Suite 439 Fort Myers FL 33907 None CO-Financial Advisor/Consultant Address( 1 ) Address(2) City State Zip Other Professionals Address( I ) Address(2) City State Zip PAYING AGENT None REGISTRAR None BF2004-A AND BF2004-B NOTE: The following items are required to be completed in full for all bond issues except those sold pursuant to Section 154 Part III, Sections 159 Parts II, III, or V; or Section 243 Part I, Florida Statutes. HAS ANY FEE, BONUS, OR GRATUITY BEEN PAID BY ANY UNDERWRITER OR FINANCIAL CONSULTANT, IN CONNECTION WITH THE BOND ISSUE, TO ANY PERSON NOT REGULARLY EMPLOYED OR ENGAGED BY SUCH UNDERWRITER OR CONSULTANT? IF YES, PLEASE PROVIDE THE FOLLOWING INFORMATION WITH RESPECT TO EACH SUCH UNDERWRITER OR CONSULTANT. HAVE ANY OTHER FEES BEEN PAID BY THE UNIT OF LOCAL GOVERNMENT WITH RESPECT TO THE BOND ISSUE, INCLUDING ANY FEE PAID TO ArrORNEYS OF FINANCIAL CONSULTANTS? IF YES, PLEASE PROVIDE THE TOTAL FEES PAID TO ApPLICABLE PARTICIPANTS. Total Bond Counsel Fees Paid "--"' $18,750.00 Total Financial Advisor Fees Paid $15,000.00 https:/lbondissue.sbafla.com/print.aspx?print_id=2026 11/18/2008 Bond Finance - Local Bond Monitoring: Print Form Page 4 of5 .-,.",,-"" Other Fees Paid FILING OF THIS FORM HAS BEEN AUTHORIZED BY THE OFFICIAL OF THE ISSUER IDENTIFIED BELOW Name Tom Henning, Chairman Board of County Commissioners Title Governmental Officer primarily responsible for coordinating issuance of the bonds FEES CHARGED BY UNDERWRITER Management Fee (Per Thousand Par Value) o Private Placement Fee o UNDERWRITER'S EXPECTED GROSS SPREAD (PER THOUSAND PAR VALUE) o FOR ADDITIONAL INFORMATION, THE DIVISION OF BOND FINANCE SHOULD CONTACT: Name Steven E. Miller Title Bond Counsel Phone 813-281-2222 Company Nabors Giblin & Nickerson, P.A Address(l) 2502 Rocky Point Drive Address(2) Suite 1060 City Tampa State FL Zip 33607 INFORMATION RELATING TO PARTY COMPLETING THIS FORM (IF DIFFERENT FROM ABOVE) Name Same Title Phone Company Address( 1 ) Address(2) City State Zip In order to better serve local governments, the Division of Bond Finance will remind issuers as their deadlines approach for filing continuing disclosure information required by SEC Rule 15c2-12, based on the following information: IF THE ISSUER IS REQUIRED TO PROVIDE CONTINUING DISCLOSURE INFORMATION IN ACCORDANCE WITH SEC RULE 15c2-12, DO YOU WANT THE DIVISION OF BOND FINANCE TO REMIND YOU OF YOUR FILING DEADLINE? ON WHAT DATE IS THE CONTINUING DISCLOSURE INFORMATION REQUIRED TO BE FILED? (MM/DD) ... . ........ PROVIDE THE FOLLOWING INFORMATION REGARDING THE PERSON(S) RESPONSIBLE FOR FILING CONTINUING DISCLOSURE INFORMATION REQUIREDBY SEC RULE 15c2-12 AND THE CONTINUING DISCLOSURE AGREEMENT (INCLUDING OTHER OBLIGATED PARTIES, IF APPROPRIATE). Name Title https:/lbondissue.sbafla.comlprint.aspx?print_id=2026 11/1812008 Bond Finance - Local Bond Monitoring: Print Form Page 50[5 Phone Company "--/ Address( 1 ) Address(2) City State Zip Fax Email '-- https:/lbondissue.sbafla.com/print.aspx?print_id=2026 11/18/2008 06/22/2B04 14:06 2392634864 NAPLESDAILV PAGE 62/02 2.17 ~- - I' NAPLES DAD.. Y NEWS fubli:Jh..d Daily 1:Japl6, FL 34 t 02 Mtidav~t of Publication State of Florida County of Collier Bc;fore; the undersigned they serve a~ tho 8)1thOrity, personally lJ)J)e8red B. Lamb, who on oath says that they serve as the Assistant Corporate Secretary' of the Naples Daily, a daily neu.-spaper published at Naples, in Collier County, ~~; di$ttibutt:d in Comer and Lee counties of Plorlda~ that 'r~ohcd cop~' of the advertising, being a . PUBUC NOnCE in the ma~r of hbli(. Notice as published. in said newspaper 2 time in the issue on September 290 and October 13th., 2002 iBlratBi ".JEIF~1:i===: ...- ................ ...~, Ii Aft".... JUnhcr oa.,. that the ...id :iapb DIu'7 New;> i~ a ~ publisllcd atNaplCI, in !IIIidCollicrOJanly. floridl. atldtbllttb~ said . /lC'llIJpIlpef bas horetoforo beeD CODlil11lOUdy published in said eonier CGUllty, Flahcla; diaIa'1mted in Colier....t t..ce eounti",,,t't'torv,b, CIIlb day Inii bL, bcc:n cnrcn:d 3' sa:oJd elass mail ~r It the JlOSl otnoc fn "N1lpk& fa raid Collier Counry. f'IoridlI,1br . period of J yCIIr lied prcacdinc the first pubUeatiOl1 o(th~ lIUIChed COl7Y of ~ ad alrllUlC l\Ird1er says that be Mllteitber ,aid IlOt' pt'OIlIiM4 auy ~ firm ar aarpanotlan a1l)' dWmunt, robeta, c:mmrlssioa or n:I\md. for the JlIIlIlO!C of KCUring 1his ooyertiselnent for (lIIb1iCltior)..(D tile ,,-id new..,er. IJ. ~ . ( SignatlJte of affiant) . SWorn to and subscribed before me This 21st day of June ,20Q4 ~~..<:tI ~ ignature of notary public) ;f~t.i)qt'~\ Harrie1l811Shong . {:i J-i MY eot.t.AlSSION, D02J.tm ElCI'lReI .::':". . ; July 2'" 2007 ~. IONPfO 1HN TIOr FAA'lIl<:iURANCf,1NC '--- j I 14 "'-- SUNTRUST EQUIPMENT FINANCE & LEASING CORP. DISCLOSURE LETTER AND TRUTH-IN-BONDING STATEMENT November 21,2008 Board of County Commissioners of Collier County, Florida Naples, Florida Re: $13,~44,204 Collier County, Florida Limited General Obligation Bond (Conservation Collier Program), Series 2008 Ladies and Gentlemen: In connection with the purchase of Collier County, Florida Limited General Obligation Bond (Conservation Collier Program), Series 2008 (the "Bond") authorized to be issued by Resolution No. 2004-383, adopted by the Board of County Commissioners of Collier County, Florida (the "County") on December 14, 2004, as supplemented (collectively, the "Resolution"), the undersigned purchaser of the Bond (the "Original Purchaser"), hereby acknowledges and represents that (1) the Original Purchaser is familiar with the County as it relates to the above transaction; (2) the Original Purchaser has been furnished certain business and [mandaI information about the County; (3) the County has made available to the Original Purchaser the opportunity to obtain additional information and to evaluate the merits and risks of an investment in the Bond; and (4) the Original Purchaser has had the opportunity to ask questions of and receive answers from representatives of the County concerning the terms and conditions of the offering and the information supplied to the Original Purchaser. The Original Purchaser acknowledges and represents that it has been advised that the Bond has not been registered under the Securities Act of 1933, as amended, in reliance upon the exemption contained in Section 3(a)(2) thereof, and that the County is not presently registered under Section 12 of the Securities and Exchange Act of 1934, as amended. Further, no trading market now exists for the Bond. Accordingly, the Original Purchaser understands that it may need to bear the risks of this investment for an indefinite time, since any sale prior to the maturity of the Bond may not be possible or may be at a price below that which the Original Purchaser is paying for the Bond. '--' The Original Purchaser has conducted its own investigation to the extent it deemed necessary. The Original Purchaser has been offered an opportunity to have made "--' available to it any and all such information it might request from the County. On this basis, it is agreed by acknowledgment of this letter that the Original Purchaser hereto is not relying on any other party or person to undertake the furnishing or verification of information relating to this transaction. The Original Purchaser acknowledges that the Bond is being purchased as part of a private placement of the Bond negotiated directly between the County and representatives of the undersigned. Accordingly, no Official Statement or other disclosure document has been prepared in connection with the issuance of the Bond and we hereby acknowledge that we have made our own independent examination of all facts and circumstances surrounding the Bond. The Original Purchaser is purchasing the Bond primarily for its own investment purposes and not with a present intent to distribute or resell the Bond. The Original Purchaser hereby agrees that prior to any distribution or resale of the Bond, it will comply in all respects with all applicable securities laws. Notwithstanding the foregoing, nothing contained herein shall otherwise restrict the assignability or transferability of the Bond. The Original Purchaser further acknowledges and represents that (1) it is the only initial purchaser of the Bond, (2) it has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of the Bond, and (3) it is not currently purchasing the Bond for more than one account or with a present view to distributing the Bond. The Original Purchaser acknowledges that the representations contained in this paragraph are being made in order to meet one of the exceptions to the continuing disclosure requirements set forth in Rule 15c2-12 promulgated under the Securities Exchange Act of 1934. Pursuant to the provisions of Section 218.385, Florida Statutes, the Original Purchaser is providing the following information with respect to the purchase of the Bond. The Original Purchaser represents to you as follows: (a) The nature and estimated amounts of expenses to be incurred and paid by the Original Purchaser in connection with the issuance and sale of the Bond are: $5,500 fees and expenses of counsel to the Original Purchaser to be paid by you. (b) There are no "finders," as defmed in Section 218.386, Florida Statutes, as amended, in connection with the issuance of the Bond. (c) No underwriting fee will be charged by the Original Purchaser m connection with the issuance of the Bond. (d) No management fee will be charged by the Original Purchaser m connection with the issuance of the Bond. '-- "--' (e) No other fee, bonus or other compensation will be paid by the Original Purchaser in connection with the issuance of the Bond to any person not regularly employed or retained by the Original Purchaser (including a "finder" as defined in Section 218.386, Florida Statutes). (f) The name and address ofthe Original Purchaser is: SunTrust Equipment Finance & Leasing Corp. 300 E. Joppa Road, 7th Floor Towson, Maryland 21286 (g) The Authority is proposing to issue the Bond for the principal purpose of financing the acquisition of environmentally sensitive lands within the County. The Bond is expected to be repaid over approximately 4.11 years. The interest rate on the Bond is 4.138%. Total interest paid over the life of the Bond will be $1,462,419.53. The expected sources of repayment for the Bond are certain limited ad valorem tax revenues of the County. The Bond will result in $3,577,286.80 (average annual debt service) of such revenue of the County being expended to pay debt service on the Bond each year and not being available to pay for other services or purposes of the County. Very truly yours, SUNTRUST EQUIPMENT FINANCE & LEASING CORP. By: ~~ D. S. Keough, Vice President --- SunTrust Equipment Finance & Leasing Corp. Donald S. Keough, Esquire Vice President, Corporate Counsel & Operations Mgr. 300 East Joppa Road, 7th Floor Towson, MD 21286 ,-- Tel 410/307-6648 Fax 410/307-6702 November 21,2008 Collier County Board of County Commissioners Naples, FL Re: Limited General Obligation Bond, Series 2008 in the amount of $13,244,204.00 ("Bond'') sold on November 21,2008 by Collier County Board of County Commissioners ("Issuer'') to Sun Trust Equipment Finance & Leasing Corp. ("Initial Purchaser ''). Dear Sir or Madam: In connection with the above-referenced Bond, the Issuer agreed to make all payments of principal and interest via wire transfer if requested by the Initial Purchaser or any registered owner and in accordance with the express terms and conditions of the Resolution, Bond, and the Payment Schedule attached thereto. Any capitalized terms herein shall be given their defmed meaning in the Resolution. Kindly note that the Initial Purchaser, who is the registered owner of the Bond as of the date of this letter, requests that all payments of principal and interest be made to the Initial Purchaser via wire transfer in accordance with the instructions as follow: SunTrust Equipment Finance & Leasing Corp. SunTrust Bank ABA 061000104 Acct # 201-150-263 For Credit to STEFL Acct. No. 443-5007043-001 Bond Payment Due semi-annually on January 1 & July 1 Fed ill 26-1256148 It is the intent of the parties that all payments of principal and interest will be made in accordance with the Payment Schedule attached to the Bond, without surrender or presentation of the Bond. Along with all other U.S. Financial institutions, the Original Purchaser is required to comply with Section 326 ofthe USA Patriot Act effective October 1,2003. Designed to assist the government in preventing the funding of terrorist and money laundering activities, this section of the USA Patriot Act requires any Bondholder to know the business entities with which they do business. To accomplish this, the Initial Purchaser will obtain, verify and record information that identifies business entities that open new accounts or sell Bonds to "----- Collier County Board of County Commissioners Limited General Obligation, Series 2008 --Page 2-- "'-- us. What this means to the Issuer: when you open your account with Original Purchaser, we will ask you for full and correct legal name, physical address, taxpayer identification number and other information that will allow us to verify your identity. The information requested may include documents, such as resolutions, incumbency information and formative documents such as a charter or bylaws or evidence of your existence, all of which will attempt to verify the identifying information provided to the Initial Purchaser Very truly yours, ~'e:::J~:':)-r-----2;;-/-- (_::...."~/..,- ~.._--"...._- Donald S. Keough Agreed and acknowledged: Collier County Board of County Commissioners Naples, FL, as Issuer Tom Henning Chairman, Boa of County Commissioners -'r;~-;rt::: Deputy C(ln~!t, Aitorl1c:,' ~ TAMPA Suite 1060 '--- 2502 Rocky Point Drive Tampa, Florida 33607 (813) 281-2222 Tel (813) 281-0129 Fax Nabors& Giblin Nickersonp.A. FORT LAUDERIfff 208 S.E. Sixth Street Fort Lauderdale. Florida 33301 (954) 525-8000 Tel (954) 525-8331 Fax ATTORNEYS AT LAW TALLAHASSEE Suite 200 1500 Mahan Drive Tallahassee, Florida 32308 (850) 224-4070 Tel (850) 224-4073 Fax November 21,2008 Board of County Commissioners of Collier County, Florida Naples, Florida Commissioners: We have examined a record of proceedings relating to the issuance of $13,244,204 aggregate principal amount of Collier County, Florida Limited General Obligation Bond (Conservation Collier Program), Series 2008 (the "Series 2008 Bond"). The Series 2008 Bond is issued under and pursuant to the Laws of the State of Florida, including, particularly, Chapter 125, Florida Statutes, Article VII, Section 12 of the Florida Constitution, Ordinance No. 2004-78 enacted on December 14, 2004 (the "Ordinance") and Resolution No. 2004-383 adopted on December 14, 2004, as supplemented (collectively, the "Resolution"). The Series 2008 Bond is dated and shall bear interest from its date of delivery, except as otherwise provided in the Resolution. The Series 2008 Bond will mature on the dates and in the principal amounts, and will bear interest at the respective rates per annum, as provided in the Resolution. Interest on the Series 2008 Bond shall be payable on January 1 and July 1 of each year, commencing on July 1, 2009. The Series 2008 Bond is subject to redemption prior to maturity as provided in the Resolution. The Series 2008 Bond is issued for the principal purpose of financing the acquisition of certain environmentally sensitive lands, as described in the Resolution. As to questions of fact material to our opinion, we have relied upon the representations of the County contained in the Resolution and in the Ordinance and the certified proceedings relating thereto and to the issuance of the Series 2008 Bond and other certifications of public officials furnished to us in connection therewith without undertaking to verify the same by independent investigation. "- --.- '-- Collier County, Florida Board of County Commissioners Page 2 November 21,2008 Based on the foregoing, we are of the opinion that: 1. The County is a duly created and validly existing political subdivision of the State of Florida. 2. The County has the right and power under the Constitution and Laws of the State of Florida to enact the Ordinance and adopt the Resolution, and the Ordinance and the Resolution have been duly and lawfu.lly enacted and adopted by the County, are in full force and effect in accordance with their respective terms and are valid and binding upon the County and enforceable in accordance with their respective terms, and no other authorization for the Ordinance and Resolution is required. In accordance with the terms of the Resolution, the County has made a limited pledge of its faith, credit and taxing power for the payment of the principal of and interest on the Series 2008 Bond. A direct annual tax shall be levied in an amount which does not exceed one quarter (1/4) of one mill, upon all taxable property of the County to make such payments. The Resolution requires that the provision shall be included and made in the County's annual budget and tax levy for the levy of such taxes, which tax shall be levied and collected at the same time, and in the same manner, as other ad valorem taxes of the County are assessed, levied and collected. 3. The County is duly authorized and entitled to issue the Series 2008 Bond, and the Series 2008 Bond has been duly and validly authorized and issued by the County in accordance with the Constitution and Laws of the State of Florida, the Ordinance and the Resolution. The Series 2008 Bond constitutes a valid and binding obligation of the County as provided in the Resolution, is enforceable in accordance with its terms and the terms of the Resolution and is entitled to the benefits of the Resolution and the laws pursuant to which it is issued; provided, however, no holder or holders of the Series 2008 Bond shall ever have the right to compel the full faith, credit and taxing power of the County in an amount greater than one quarter (1/4) of one mill upon all taxable property of the County. --- 4. Under existing statutes, regulations, rulings and court decisions, the interest on the Series 2008 Bond (a) is excluded from gross income for federal income tax purposes and (b) is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations; however, it should be noted that with respect to certain corporations (as defined for federal income tax purposes), such interest is taken into account in determining adjusted current earnings for the purpose of computing the alternative minimum tax. The opinion set forth in clause (a) above is subject to the condition that the County comply with all requirements of the Internal '-- Collier County, Florida Board of County Commissioners Page 3 November 21,2008 Revenue Code of 1986, as amended, that must be satisfied subsequent to the issuance of the Series 2008 Bond in order that interest thereon be (or continues to be) excluded from gross income for federal income tax purposes. Failure to comply with certain of such requirements could cause the interest on the Series 2008 Bond to be so included in gross income retroactive to the date of issuance of the Series 2008 Bond. The County has covenanted to comply with all such requirements. Ownership of the Series 2008 Bond may result in collateral federal tax consequences to certain taxpayers. We express no opinion regarding such federal tax consequences arising with respect to the Series 2008 Bond. It should be noted that we have not been engaged or undertaken to review the accuracy, completeness or sufficiency of any offering material relating to the Series 2008 Bond and we express no opinion relating thereto. We have not been engaged or undertaken to review the compliance with any federal or state law with regard to the sale or distribution of the Series 2008 Bond and we express no opinion relating thereto. The opinions expressed in paragraphs 2 and 3 hereof are qualified to the extent that the enforceability of the Ordinance, the Resolution and the Series 2008 Bond may be limited by any applicable bankruptcy, insolvency, moratorium, reorganization or other similar laws affecting creditors' rights generally, or by the exercise of judicial discretion in accordance with general principles of equity. We have examined the form of the Series 2008 Bond and, in our opinion, the form of the Series 2008 Bond is regular and proper. Respectfully submitted, ;1/~/ GJL- v-A/~/A-' ~ TAMPA Suite 1060 '-./ 2502 Rocky Point Drive Tampa, Florida 33607 (813) 281-2222 Tel (813) 281-0129 Fax Nabors& Giblin Nickersonp.A. FORT LAUDERW 208 S.E. Sixth Street Fort Lauderdale, Florida 33301 (954) 525-8000 Tel (954) 525-8331 Fax ATTORNEYS AT LAW TALLAHASSEE Suite 200 1500 Mahan Drive Tallahassee, Florida 32308 (850) 224-4070 Tel (850) 2244073 Fax November 21,2008 SunTrust Equipment Finance & Leasing Corp. Towson, Maryland Re: $13,244,204 Collier County, Florida Limited General Obligation Bond (Conservation Collier Program), Series 2008 Dear Sir or Madam: We have this date delivered our approving opinion as Bond Counsel in connection with the issuance of the above-captioned Bonds. You and your permitted successors and/or assigns are entitled to rely upon such opinion as if such opinion were addressed to you. Sincerely, ;tik, G'JL o/-Al~ll-a, "---- Office of the County Attorney "'-.-- Deputy CouDI:y Aaomey Scott R. Teach A....... CouDI:y AItomc:p Jennifer A. Belpedio Colleen M. Greene William E. Mountford M;ujorie M. Student-Stirling Steven T. Williams JeffE. Wright Robert N. ZachaIy Set::tioD CJWJj Heidi F. Ashton-Cicko. Jacqueline W. Hubbard. . Board Certified City, County and Local Government Law Jeffrey A KlCJIp.kow County Attorney November 21,2008 Board of County Commissioners of Collier County Naples, Florida SunTrust Equipment Finance & Leasing Corp. Towson, Maryland Re: $13.244.204 Collier County. Florida Limited General Obligation Bond (Conservation Collier Program). Series 2008 Dear Sir: This letter shall serve as the opinion of the County Attorney of Collier County, Florida (the "Issuer"). I have participated in various proceedings in connection with the issuance by the Issuer of $13,244,204 aggregate principal amount of Collier County, Florida Limited General Obligation Bond (Conservation Collier Program), Series 2008 (the "Bond"). All terms not otherwise defined herein shall have the meanings ascribed thereto in Resolution No. 2004-383, adopted by the Board of County Commissioners of the Issuer on December 14,2004, as supplemented (the "Resolution"). I am of the opinion that: 1. The Issuer is a political subdivision of the State of Florida, duly organized and validly existing and has full legal right, power and authority to enact the Ordinance, adopt the Resolution and perform its obligations under the Ordinance and Resolution, and to authorize, execute and deliver and to perform its obligations under the Bond. 2. The Issuer has duly enacted the Ordinance, adopted the Resolution, and has duly authorized, executed and delivered the Bond, and such instruments constitute legal, binding and valid obligations of the Issuer, enforceable in accordance with their terms; provided, however, the enforceability thereof may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights generally ~ 3301 East Tamiami Trail- Naples, Florida 34112-4902 - Phone (239) 252-8400 - Facsimile (239) 252-6300 and subject, as to enforceability, to general principles of equity and the exerCIse of '-.~ judicial discretion. 3. The enactment of the Ordinance, adoption of the Resolution and the authorization, execution and delivery of the Bond, and compliance with the provisions thereof, will not conflict with, or constitute a material breach of or default under, any law, administrative regulation, consent decree, ordinance, resolution or any agreement or other instrument to which the Issuer is subject nor will such enactment, adoption, execution, delivery, authorization or compliance result in the creation or imposition of any lien, charge or other security interest or encumbrance of any nature whatsoever upon any of the property or assets of the Issuer, or under the terms of any law, administrative regulation, ordinance, resolution or instrument, except as expressly provided by the Resolution. 4. All approvals, consents, authorizations and orders of any governmental authority or agency having jurisdiction in any matter which would constitute a condition precedent to the performance by the Issuer of its obligations under the Resolution have been obtained and are in full force and effect. 5. The Issuer is lawfully empowered to levy, collect and pledge the Limited Ad Valorem Tax for the payment of the principal of and interest on the Bond. 6. The issuance of the Bond payable from the Limited Ad Valorem Tax was approved pursuant to a properly called, noticed and held referendum election on November 5, 2002. 7. To my knowledge after due inquiry, as of the date hereof, there is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, government agency, public board or body, pending or, to the best of my knowledge, threatened against the Issuer, affecting or seeking to prohibit, restrain or enjoin the sale, issuance or delivery of the Bond or the levy or collection of the Limited Ad Valorem Tax to pay the principal of and interest on the Bond, or contesting or affecting the Issuer's authority to issue the Bond, enact the Ordinance, adopt the Resolution, or contesting the tax-exempt status of interest on the Bond, or contesting the powers of the Issuer or any authority for the issuance of the Bond, the enactment of the Ordinance, or the adoption of the Resolution. The addressees hereof, as well as their permitted successors and/or assigns, are permitted to rely on this opinion, but only with regard to those matters expressly set forth herein. ''---~ Resp~etful submitted, '""~, ~ L ~~ . Teach Deputy County Attorney 3301 East Tamiami Trail - Naples, Florida 34112-4902 - Phone (239) 252-8400 - Facsimile (239) 252-6300