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HomeMy WebLinkAboutCity of Tamarac Resolution (125)I 1 CITY OI RESOL C, FLORIDA ). R-2002-125 Temp. Reso. #9674 February 27, 2002 Revised March 21, 2002 Revised April 18, 2002 Revised May 2, 2002 Page 1 i A RESOLUTION OF �HE CITY COMMISSION OF THE CITY OF j TAMARAC, FLORIDA SUPPLEMENTING AN AMENDING RESOLUTION NO. 98-156, AS REPLACED BY RESOLUTION NO.99-178 AND AS FURTHER AMENDED AND SUPPLEMENTED BY ' RESOLUTION NO. 99-192, AUTHORIZING THE ISSUANCE OF NOT EXCEEDING $13,500, 00 SALES TAX REVENUE BONDS, SERIES 2002 F THE CITY OF TAMARAC, FLORIDA, TO FINANC THE CONSTRUCTION OF A FIRE STATION, A DEVELOPMENT SERVICES BUILDING, A PUBLIC I VORKS STORAGE BUILDING, PARKS AND RECREA ZONAL FACILITIES, LAND ACQUISITION, SI E WORK, STREET IMPROVEMENTS, AND OTHER CAPITAL IMPROVEMENTS WI HIN THE CITY; FIXING CERTAIN TERMS ANDS DETAILS OF SUCH BONDS; AUTHORIZING A NE OTIATED SALE OF SUCH BONDS TO WILLIAM 4. HOUGH & CO. PURSUANT TO THE TERMS ANI) CONDITIONS DESCRIBED HEREIN; AUTHORIZI G THE EXECUTION AND DELIVERY OF A BO D PURCHASE CONTRACT; APPROVING THE FOIRM OF AND AUTHORIZING THE DISTRIBUTION 0 A PRELIMINARY OFFICIAL STATEMENT AND AUI HORIZING THE EXECUTION AND DELIVERY C F A FINAL OFFICIAL STATEMENT; SELECTING A PAYING AGENT AND REGISTRAR AND AUT ORIZING THE EXECUTION AND DELIVERY OF AN AGREEMENT BETWEEN THE CITY AND THg BOND REGISTRAR AND PAYING AGENT; RATIFYING THE SELECTION OF FINANCIAL GUARANTY INSURANCE COMPANY AS BOND INSURER AND PROVIDING FOR CERTAIN MATTERS IN C NNECTION THEREWITH; AUTHORIZING THE XECUTION AND DELIVERY Temp. Reso. #9674 February 27, 2002 Revised March 21, 2002 Revised April 18, 2002 Revised May 2, 2002 Page 2 OF A CONTINUING DISCLOSURE CERTIFICATE; AUTHORIZING OTHER REQUIRED ACTIONS; PROVIDING FOR SEVERABILITY AND AN EFFECTIVE DATE. LJ BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF TAMARAC, FLORIDA: SECTION 1. AUTHORITY FO THIS RESOLUTION. The City of Tamarac, Florida (the "City") is authorized to adopt this resolution (the "Resolution") under the authority granted by the provisions of Chapter 166, Florida Statutes, as amended, its municipal charter, and other applicable provisions of law. SECTION 2. FINDINGS. It is �ereby found and determined that: A. Pursuant to Res lution No. 98-156 adopted by the City Commission on May 27, 1998 as supplemented and amended from time to time, and as particularly replaped by Resolution No. 99-178 adopted by the City Commission on July 14, 1909 and as further supplemented and amended by Resolution No. 99-192 adopted by the City Commission on July 14, 1999, and as supplemented and jamended hereby, collectively, the "Bond Resolution"), the City authorized the issuance of "Additional Parity Bonds" from time to time. B. In furtherance theteof and pursuant to the Bond Resolution, the City deems it to be in its best i�terest to issue its Sales Tax Revenue Bonds, Series 2002 as "Additional Party Bonds" in the aggregate principal amount of not to exceed $13,500,000 (th "Series 2002 Bonds") in order to finance the construction of a fire station, a Development services building, a public works storage building, parks and rec eational facilities, land acquisition, site work, street improvements, and otherr capital improvements within the City (the "Project") for purposes of this Resolution. C. In consideration 4 the acceptance of the Series 2002 Bonds by those who shall own the same f$om time to time, the Bond Resolution shall be deemed to be and shall constitute a contract between the City and such Series 2002 Bondholders. D. All of the provisi s, covenants, pledges and conditions in the Bond Resolution shall be a licable to the Series 2002 Bonds herein authorized and such Series 20 2 Bonds shall constitute 'Bonds" within the meaning of the Bond Resolution. E. The Bond Resoluon provides that all Bonds shall be dated, shall mature on such dates a d in such amounts, shall bear such rates of interest, shall be payable in such places and shall be subject to such redemption provisions, among other matters, as shall be determined by resolution adopted by the City 4nd it is now appropriate to determine by this resolution such matters and the manner of finalizing such terms and details with respect to the Series 2002 Bonds. F. All capitalized terms used herein and not otherwise defined herein shall have the meaning ascribed thereto in the Bond Resolution, unless otherwise provided or unless the context otherwise clearly requires. To the extent necessary to effectuate the terms and conditions hereof, the Bond Resolution is hereby incorporated herein by reference. G. The City deems it necessary, desirable and in the best interests of the City and its citizens that the Project be acquired, constructed and equipped. H. The Project shall be paid for out of proceeds of the Series 2002 Bonds. I. The Project to be financed with the proceeds of the Series 2002 Bonds satisfies a paramount public purpose and will provide for and promote general economic benefit and social benefit to the City and its citizens. J. Except for the pledge thereof pursuant to the Bond Resolution to secure the City of Tamarac, Florida Sales Tax Revenue Bonds, Series 1999 (the "Series 1999 Bonds"), the Sales Tax Revenues have not heretofore been pledged or encumbered in any manner. K. The estimated Pledged Revenues will be sufficient to pay the principal of and interest on the Series 1999 Bonds and the Series 2002 Bonds (collectively, the "Bonds"), as the same become due, and all other payments provided for in the Bond Resolution. L. The principal of and interest on the Bonds and all other payments provided for in the Bond Resolution will be payable solely from the Pledged Revenues, and the ad valorem taxing power of the City has not been pledged to pay the principal of and interest on the Bonds and, except as otherwise provided in the Bond Resolution, the Bonds shall not constitute a lien upon any property of the City. M. The City desires to amend the flow of funds in the Bond Resolution in connection with the Debt Service Reserve Account pursuant to Section 4.1 of the Bond Resolution, which such amendment in conditioned on the receipt of written consent of the Financial Guaranty Insurance Company, as the insurer of the Series 1999 Bonds, which such consent has already been obtained. SECTION 3. DESCRIPTION OF THE SERIES 2002 BONDS; EXECUTION OF BOND PURCHASE CONTRACT There is hereby authorized to be issued a Series of Bonds designated as "City of Tamarac, Florida Sales Tax Revenue Bonds, Series 2002" as "Additional Parity B ds" authorized to be issued pursuant to the Bond Resolution for the purpose of financing the Project and casts of issuing the Series 2002 Bonds. In addition to the terms contained in the Bond Resolution, the Series 2002 Bonds (a) shall have an aggregate principal amount of not to exceed $13,500,000, (b) shall be sold at an underwriting discount (exclusive of any original issue discount or premium) of not toe teed 1% of the principal amount of the Series 2002 Bonds, (c) shall be issued as S rial Bonds or Term Bonds or a combination thereof, in denominations of $5,000 br any integral multiple thereof, numbered consecutively upward beginning with �'R-1," (d) shall be payable on such dates and in such amounts with a final maturit� date of not exceeding 21 years from the date of issuance, (e) shall have such inter�st payment dates and shall bear interest at rates not exceeding the maximum rat permitted by law and at a true interest cost not exceeding 6%, (f) if redeemable, all be redeemable at redemption prices not exceeding 102% of the principal amo nt thereof, and (g) shall be dated and shall have such other characteristics, all as shall be set forth in a Bond Purchase Contract between the City and the U derwriter in substantially the form attached hereto as Exhibit A (the "Bond Purc se Contract") and in the Series 2002 Bonds themselves. The Mayor or Vice Mayoi and the City Manager or assistant or deputy City Manager are authorized to apprgve the final terms of the Series 2002 Bonds, which terms shall be consistent with 1 the parameters set forth above without any further authorization of the City Com�mission, and such terms shall be set forth in the Bond Purchase Contract. Upon satisfaction of the conditi ns contained in the Bond Resolution and the Bond Purchase Contract, the City he�eby authorizes the Mayor or Vice Mayor and the City Manager or assistant or dep ty City Manager to execute and deliver the Bond Purchase Contract in substantially the form attached hereto as Exhibit A (with such changes and filling of bla4s as shall be approved by the Mayor or Vice Mayor and the City Manager or assistant or deputy City Manager) and the Series 2002 Bonds in substantially the form) included in the Bond Resolution (with such changes and filling of blanks as shall e approved by the Mayor or Vice Mayor and the City Manager or assistant or deputy City Manager) in the name of and on behalf of the City, such signatures to be attested by the City Clerk or assistant or deputy City Clerk, the form of whic� Bond Purchase Contract and Series 2002 Bonds to be approved by the City Attorney or assistant or deputy City Attorney, all of the provisions of which, when executed and delivered by the City as authorized in the Bond Resolution shall be deemed to be a part of this instrument as fully and to the same extent as if incorporated ve*batim herein. The execution and delivery of the Bond Purchase Contract and the Series 2002 Bonds shall constitute conclusive evidence of the approval thereof. A book -entry -only system of registration is hereby authorized for the Series 2002 Bonds. So long as the City shall maintain a book -entry -only system with respect to the Series 2002 Bonds, the following provisions shall apply: (1) A blanket letter of representation dated August 22, 1997 has been entered into by the City (the "Letter of Representation") with The Depository Trust Company ("DTC"). It is intended that the Series 2002 Bonds be registered so as to participate in a global book -entry system with DTC as set forth herein and in such Letter of Representation. The Series 2002 Bonds shall be initially issued in the form of a single fully registered bond of each maturity. Upon initial issuance, the ownership of such Series 2002 Bonds shall be registered by the Bond Registrar (hereinafter defined) in the name of Cede & Co., as nominee for DTC. With respect to Series 2002 Bonds registered by the Bond Registrar in the name of Cede & Co., as nominee of DTC, the City, the Bond Registrar and the Paying Agent (hereinafter defined) shall have no responsibility or obligation to any broker -dealer, bank or other financial institution for which DTC holds Series 2002 Bonds from time to time as securities depositary (each such broker -dealer, bank or other financial institution being referred to herein as a "Depository Participant") or to any person on behalf of whom such a Depository Participant holds an interest in the Series 2002 Bonds (each such person being herein referred to as an "Indirect Participant"). Without limiting the immediately preceding sentence, the City, the Bond Registrar and the Paying Agent shall have no responsibility or obligation with respect to (a) the accuracy of the records of DTC, Cede & Co., or any Depository Participant with respect to the ownership interest in the Series 2002 Bonds, (b) the delivery to any Depository Participant or any Indirect Participant or any other person, other than a registered owner of a Series 2002 Bond as shown in the bond register, of any notice with respect to the Series 2002 Bonds, including any notice of redemption or (c) the payment to any Depository Participant or Indirect Participant or any other person, other than a registered owner of a Series 2002 Bond as shown in the bond register, of any amount with respect to principal of, premium, if any, or interest on, the Series 2002 Bonds. No person other than a registered owner of a Series 2002 Bond as shown in the bond register shall receive a Series 2002 Bond certificate with respect to any Series 2002 Bond. Upon delivery by DTC to the Bond Registrar 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 hereof with respect to the payment of interest by the mailing of checks or drafts to the registered owners of Series 2002 Bonds appearing as registered owners in the registration books maintained by the Bond Registrar at the close of business on regular record date, the name "Cede & Co." in this Resolution shall refer to such new nominee of DTC. (2) In the event that (4) the City determines that DTC is incapable of discharging its responsibilitie described herein and in the Letter of Representation, (b) the agreeme t among the City, the Paying Agent and DTC evidenced by the Letter of Repre entation shall be terminated for any reason or (c) the City determines that it is lin the best interests of the beneficial owners of the Series 2002 Bonds that th y be able to obtain certificated Series 2002 Bonds, the City shall notify DTq of the availability through DTC of Series 2002 Bond certificates and the Serie$ 2002 Bonds shall no longer be restricted to being registered in the bond reoster in the name of Cede & Co., as nominee of DTC. At that time, the City may determine that the Series 2002 Bonds shall be registered in the name of and deposited with a successor depository operating a universal book -entry system, *s may be acceptable to the City, or such depository's agent or designee, end if the City does not select such alternate universal book -entry system, thin the Series 2002 Bonds may be registered in whatever name or names registered owners of Series 2002 Bonds transferring or changing Series 2002 Bondsl designate, in accordance with the provisions hereof. Notwithstanding any otlier provision of this Resolution to the contrary, so long as any Series 2002 Bond is registered in the name of Cede & Co., as nominee of DTC, all payments with respect to principal of, premium, if any, and interest on such Series 2002 Bald and all notices with respect to such Series 2002 Bond shall be made and gi4en, respectively, in the manner provided in the Letter of Representation. SECTION 4. REDEMPTION PROVISIONS. The Series 2002 Bonds shall be subject to redemption in such amounts and at such times as set forth in the final form of the Bond Purchase Contract. At least thirty (30) days before the redemption date, a notice of any such redemption, either in whole or in p t, shall be mailed, first class mail, postage prepaid, to all registered owners ofISeries 2002 Bonds to be redeemed at their addresses as they appear on the registration books. To supplement such notice to the registered owners, the notice of redemption may also be mailed by overnight mail to at least two national depositories and one national wire service used to distribute information relating to municipal bonds, at least thirty-five (35) days prior to the redemption date. Failure to mail any redemption notice to any Series 2002 Bondholder or any depositories oLnd wire services, or any defect in any notice so mailed, shall not affect the validity of the proceedings for the redemption of the Series 2002 Bonds of any other Holde# of Series 2002 Bonds. Each such notice shall set forth the date fixed for redemption, the redemption price to be paid and, if less than all of the Series 2002 Bonds them outstanding shall be called for redemption, the registration and CUSIP numbers of such Series 2002 Bonds. Each notice of redemption mailed to a registered o,pvner of a Series 2002 Bond to be redeemed shall, if less than the entire principal,, amount thereof is to be redeemed, also state the principal amount thereof to be redeemed and that such Series 2002 Bond must be surrendered to the Bond Registrar in exchange for the payment of the principal amount thereof to be redeemed and the issuance of a new Series 2002 Bond or Series 2002 Bonds equaling in principal amount that portion of the principal sum not to be redeemed of the Series 2002 Bonds to be surrendered. Notice having been given in the manner provided above, the Series 2002 Bonds or portions of Series 2002 Bonds so called for redemption shall, on the redemption date designated in such notice, become and be due and payable at the redemption price provided for redemption for such Series 2002 Bonds or portions of Series 2002 Bonds on such date. On the date so designated for redemption, interest on the Series 2002 Bonds or portions of Series 2002 Bonds so called for redemption shall cease to accrue, such Series 2002 Bonds and portions of Series 2002 Bonds shall cease to be entitled to any lien, benefit or security under the Bond Resolution and shall be deemed paid under the Bond Resolution, and the registered owners of such Series 2002 Bonds or portions of Series 2002 Bonds shall have no rights except to receive payment of the redemption price. SECTION 5. NEGOTIATED SALE OF THE SERIES 2002 BONDS. It is hereby found, ascertained, determined and declared by the City that a negotiated sale of the Series 2002 Bonds is in the best interest of the City in order to more effectively control the timing of the issuance of the Series 2002 Bonds and due to the size of the issue. The negotiated sale of the Series 2002 Bonds to William R. Hough & Co. (the "Underwriter") pursuant to the terms of the Bond Purchase Contract is hereby authorized and approved. Prior to the execution of the Bond Purchase Contract, the City will be provided all applicable disclosure information required by Section 218.385, Florida Statutes, a copy of which is attached to or otherwise included as part of the Bond Purchase Contract. SECTION 6. PRELIMINARY AND FINAL OFFICIAL STATEMENTS. The Preliminary Official Statement relating to the Series 2002 Bonds, in substantially the form attached hereto as Exhibit B, is hereby approved. The distribution and use of the Preliminary Official Statement in connection with the public offering for sale of the Series 2002 Bonds is hereby authorized. The execution by the City Manager or assistant or deputy City Manager of a certificate deeming the Preliminary Official Statement final within the meaning of Rule 15c2-12 of the Securities and Exchange Commission, promulgated under the Securities Exchange Act of 1934, is hereby authorized. The City is hereby authorized to have prepared and the Mayor or Vice Mayor and the City Manager or assistant or deputy City Manager of the City are hereby authorized to execute a final Official Statement, and, upon such execution, to deliver the same to the Underwriter for use by it in connection with the sale and distribution of the Series 2002 Bonds. The Official Statement shall be substantially in the form of the Preliminary Official Statement, with such changes and filling of blanks as shall be approved by the Mayor or Vice Mayor and the City Manager or assistant or deputy City Manager as necessary to confirm the details of the Series 2002 Bonds and such other inserti ns, modifications and changes as may be approved by the Mayor or Vice Mayor and City Manager or assistant or deputy City Manager. The execution and deliveiy of the Official Statement by the Mayor or Vice Mayor and City Manager or assi taut or deputy City Manager shall constitute conclusive evidence of the approval th reof. The City hereby authorizes the Official Statement and the information contai ed therein to be used in connection with the offering and sale of the Series 2002 B ds. SECTION 7. APPOINTMENT OF BOND REGISTRAR AND PAYING AGENT. U.S. Bank National Association, St. Paul, Minnesota, is hereby designated as the Paying Agent and Bond Registrar for the Series 2002 Bonds. The City hereby authorizes the Mayor or Vice IMayor and the City Manager or assistant or deputy City Manager to execute and deliver the Paying Agent and Bond Registrar Agreement in substantially the forr# attached hereto as Exhibit C (with such changes and filling of blanks as shall !be approved by the Mayor or Vice Mayor and the City Manager or assistant or d uty City Manager) in the name of and on behalf of the City, such signatures to be attested by the City Clerk or assistant or deputy City Clerk, the form of which aying Agent and Bond Registrar Agreement to be approved by the City Attorney * assistant or deputy City Attorney, all of the provisions of which, when executed a�d delivered by the City as authorized herein shall be deemed to be a part of this inotrument as fully and to the same extent as if incorporated verbatim herein. The exjecution and delivery of the Paying Agent and Bond Registrar Agreement shall constitute conclusive evidence of the approval thereof. I SECTION 8. MUNICIPAL BOND INSURANCE. A municipal bond new issue insurance policy that guarantees the payment of principal and interest on the Series 2002 Bonds (the "Policy") i$ hereby authorized to be purchased from Financial Guaranty Insurance Comp�ny (the "Bond Insurer") in accordance with the commitment for insurance attached hereto as Exhibit D (the "Insurance Commitment"), and payment for suc insurance is hereby authorized from Series 2002 Bond proceeds. The City Manger or assistant or deputy City Manager is hereby authorized to execute such In*urance Commitment. The provisions of the Insurance Commitment are hereby in�orporated by reference. To the extent of any inconsistency between the provisions pf the Insurance Commitment and provisions otherwise contained in the Bond Resolution, the provisions of the Bond Resolution shall prevail. A statement of insur*ce is hereby authorized to be printed on or attached to the Series 2002 Bonds for the benefit and information of the Series 2002 Bondholders. I So long as the Series 2002 Bonds are Outstanding and insured by the Bond Insurer and the Bond Insurer is not ix default under the Policy, all of the covenants and agreements made for the bene�it of the Bond Insurer made in Resolution No.99-192 adopted by the City Commission on July 14, 1999 relating to its municipal bond new issue policy which insures the Series 1999 Bonds shall apply whether or not the Series 1999 Bonds are Outstanding. Notwithstanding anything in the Bond Resolution to the contrary, the City and Paying Agent shall comply with the following payment procedures pursuant to the Policy: (i) If, on the business day preceding any interest payment date for the Series 2002 Bonds there is not on deposit with the Paying Agent sufficient moneys available to pay all principal of and interest on the Series 2002 Bonds due on such date, the Paying Agent shall immediately notify the Bond Insurer and State Street Bank and Trust Company, N.A., New York, New York or its successor as its Fiscal Agent (the "Fiscal Agent) of the amount of such deficiency. If by said interest payment date, the City has not provided the amount of such deficiency, the Paying Agent shall simultaneously make available to the Bond Insurer and to the Fiscal Agent the registration books for the Series 2002 Bonds maintained by the Paying Agent. In addition: (a) The Paying Agent shall provide the Bond Insurer with a list of the Series 2002 Bondholders entitled to receive principal or interest payments from the Bond Insurer under the terms of the Bond Insurance Policy and shall make arrangements for the Bond Insurer and its Fiscal Agent (1) to mail checks or drafts to Series 2002 Bondholders entitled to receive full or partial interest payments from the Bond Insurer and (2) to pay principal of the Series 2002 Bonds surrendered to the Fiscal Agent by the Series 2002 Bondholders entitled to receive full or partial principal payments from the Bond Insurer; and (b) The Paying Agent shall, at the time it makes the registration books available to the Bond Insurer pursuant to (A) above, notify Series 2002 Bondholders entitled to receive the payment of principal of or interest on the Series 2002 Bonds from the Bond Insurer (1) as to the fact of such entitlement, (2) that the Bond Insurer will remit to them all or part of the interest payments coming due subject to the terms of the Policy, (3) that, except as provided in paragraph (ii) below, in the event that any Series 2002 Bondholder is entitled to receive full payment of principal from the Bond Insurer, such Series 2002 Bondholder must tender his Series 2002 Bond with the instrument of transfer in the form provided on the Series 2002 Bond executed in the name of the Bond Insurer, and (4) that, except as provided in paragraph (ii) below, in the event that such Series 2002 Bondholder is entitled to receive partial payment of principal from the Bond Insurer, such Series 2002 Bondholder must tender his or her Series 2002 Bond for payment first to the Paying Agent, which shall note on such Series 2002 Bond that portion of principal paid by th Paying Agent, and then, with an acceptable form of assignment executed irl the name of the Bond Insurer, to the Fiscal Agent, which will then pay the anpaid portion of principal to the Series 2002 Bondholder subject to the terms of the Policy. (ii) In the event that the P principal of or interest on a Series 20( Bondholder pursuant to the Unite( bankruptcy in accordance with the competent jurisdiction, the Paying Ag Bond Insurer, notify all Series 2002 ] 2002 Bondholder's payment is so re( entitled to payment from the Bond Ii Paying Agent shall furnish to the Bor. ying Agent has notice that any payment of Bond has been recovered from a Series 2002 States Bankruptcy Code by a trustee in nal, nonappealable order of a court having nt shall, at the time it provides notice to the Dndholders that in the event that any Series vered, such Series 2002 Bondholder will be Surer to the extent of such recovery, and the Insurer its records evidencing the payments of principal of and interest on the Series 2002 Bonds which have been made by the Paying Agent and subsequently recovered from Series 2002 Bondholders, and the date on which such payments were mode. (iii) The Bond Insurer shall, Jo the extent it makes payment of principal of or interest on the Series 2002 Bons, become subrogated to the rights of the recipients of such payments in accordance with the terms of the Policy and, to evidence such subrogation, (A) in the I case of subrogation as to claims for past due interest, the Paying Agent shall note ithe Bond Insurer's rights as subrogee on the registration books maintained by the Paying Agent upon receipt from the Bond Insurer of proof of the payment of interest thereon to the holders of such Series 2002 Bonds and (B) in the case of subrogation as to claims for past due principal, the Paying Agent shall note the Pond Insurer's rights as subrogee on the registration books for the Series 20021 Bonds maintained by the Paying Agent upon receipt of proof of the payment of principal thereof to the holders of such Series 2002 Bonds. Notwithstanding anything irk this Resolution, the Bond Resolution or the Series 2002 Bonds to the contrary, the Paying Agent shall make payment of such past due interest and past due princi al directly to the Bond Insurer to the extent that the Bond Insurer is a subrogee w�th respect thereto. SECTION 9. DEBT SERVIC� RESERVE ACCOUNT POLICY. A Debt Service Reserve Account Policy to be deposited in the Debt Service Reserve Account (the "Debt Service Reserve Account Policy") is hereby authorized to be purchased from the Bond Insurer in accordance With the commitment for surety bond attached hereto as Exhibit E (the "Surety Commitment"), and payment for such surety bond is hereby authorized from Series 2002 Bond proceeds. The City Manager or assistant or deputy City Manager io hereby authorized to execute such Surety Commitment. The provisions of the (Surety Commitment are hereby incorporated by reference. To the extent of any inconsistency between the provisions of the Surety Commitment and provisions otherwise contained in the Bond Resolution, the provisions of the Bond Resolution shall prevail. The City hereby authorizes the Mayor or Vice Mayor and the City Manager or assistant or deputy City Manager to execute and deliver the Debt Service Reserve Account Agreement in substantially the form attached to the Surety Commitment (with such changes and filling of blanks as shall be approved by the Mayor or Vice Mayor and the City Manager or assistant or deputy City Manager) in the name of and on behalf of the City, such signatures to be attested by the City Clerk or assistant or deputy City Clerk, the form of which Debt Service Reserve Account Agreement to be approved by the City Attorney or assistant or deputy City Attorney, all of the provisions of which, when executed and delivered by the City as authorized herein shall be deemed to be a part of this instrument as fully and to the same extent as if incorporated verbatim herein. The execution and delivery of the Debt Service Reserve Account Agreement shall constitute conclusive evidence of the approval thereof. As long as the Debt Service Reserve Account Policy is in effect and the Bond Insurer is not in default thereunder, all of the covenants and agreements made for the benefit of the Bond Insurer made in Resolution No. 99-192 adopted by the City Commission on July 14, 1999 relating to the prior issuance of its debt service reserve account policy at the time of the issuance of the Series 1999 Bonds shall apply whether or not such existing debt service reserve account policy remains in effect. In addition, the Paying Agent shall be custodian of the Debt Service Reserve Account Policy and act as fiduciary for the Bondholders in respect thereof. The Debt Service Reserve Account Policy is a "Reserve Account Insurance Policy" within the meaning of the Bond Resolution. SECTION 10. INTERESTED PARTIES. Nothing in the Bond Resolution expressed or implied is intended or shall be construed to confer upon, or to give to any person or entity, other than the City, the Bond Insurer, the Bond Registrar, the Paying Agent, and the registered owners of the Series 2002 Bonds, any right, remedy or claim under or by reason of the Bond Resolution or any covenants, condition or stipulation thereof, and all covenants, stipulations, promises and agreements in the Bond Resolution contained by and on behalf of the City shall be for the sole and exclusive benefit of the City, the Bond Insurer, the Bond Registrar, the Paying Agent, and the registered owners of the Series 2002 Bonds. SECTION 11. EVENTS OF DEFAULT. The following events shall each constitute an event of default under the Bond Resolution and the Series 2002 Bonds: I 1 A. failure to pay the when due; B. the dissolution or liquids voluntary petition in bankruptcy, or bankruptcy, or adjudication of the Cit, the benefit of its creditors, or appoints the City into an agreement of compo: court of competent jurisdiction of a pe for its reorganization instituted under as amended, or under any similar act or may hereafter be enacted; and of or interest on the Series 2002 Bonds ;ion of the City, or the filing by the City of a the commission by the City of any act of as a bankrupt, or assignment by the City for tent of a receiver for the City, or the entry by ition with its creditors, or the approval by a ition applicable to the City in any proceeding bhe provisions of the Federal Bankruptcy Act, n any jurisdiction which may now be in effect C. the City shall default in I the due and punctual performance of any of the other covenants, conditions, agre ents and provisions contained in the Series 2002 Bonds or the Band Resolution n the part of the City to be performed, and such default shall continue for a peri of thirty (30) days after written notice from the Paying Agent, the Bond Insurer aly holder of Series 2002 Bonds. SECTION 12. CONTINUING DISCLOSURE. The City hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate. Tte City hereby authorizes the Mayor or Vice Mayor and the City Manager or assistant or deputy City Manager to execute and deliver the Continuing Disclosure C rtificate in substantially the form attached hereto as Exhibit F (with such changes and filling of blanks as shall be approved by the Mayor or Vice Mayor and the , City Manager or assistant or deputy City Manager) in the name of and on behal� of the City, such signatures to be attested by the City Clerk or assistant or deputy City Clerk, the form of which Continuing Disclosure Certificate to be approvedl by the City Attorney or assistant or deputy City Attorney, all of the provisions of which, when executed and delivered by the City as authorized herein shall be deemed to be a part of this instrument as fully and to the same extent as if incorpprated verbatim herein. The execution and delivery of the Continuing Disclosfure Certificate shall constitute conclusive evidence of the approval thereof. Notwithstanding any other provision of this Resolution, failure of the City to comply with the Continuing Disclosure Certificate will not be considered an event of default hereunder, or under the Fond Resolution; however any Series 2002 Bondholder may take such actions as! may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under this Section 12. Series 2002 Bondholders shall not be entitled to any damages for failure pf the City to comply with the terms of the Continuing Disclosure Certificate. SECTION 13. FEDERAL INCOME TAX COVENANTS. A. The City covenants with the Holders of the Series 2002 Bonds that it shall not use the proceeds of such Series 2002 Bonds in any manner which would cause the interest on such Series 2002 Bonds to be or become includable in the gross income of the Holder thereof for federal income tax purposes. B. The City covenants with the Holders of the Series 2002 Bonds that neither the City nor any person under its control or direction will make any use of the proceeds of such Series 2002 Bonds (or amounts deemed to be proceeds under the Internal Revenue Code of 1986, as amended (the "Code")) in any manner which would cause such Series 2002 Bonds to be "arbitrage bonds" within the meaning of Section 148 of the Code and neither the City nor any other person shall do any act or fail to do any act which would cause the interest on such Series 2002 Bonds to become includable in the gross income of the Holders thereof for federal income tax purposes. C. The City hereby covenants with the Holders of each Series 2002 Bonds that it will comply with all provisions of the Code necessary to maintain the exclusion of interest on the Series 2002 Bonds from the gross income of the Holder thereof for federal income tax purposes, including, in particular, the payment of any amount required to be rebated to the U.S. Treasury pursuant to the Code. SECTION 14. PLEDGE OF PLEDGED REVENUES. The Bond Resolution creates a valid and binding first lien pledge of the Pledged Revenues in favor of the Bondholders as security for payment of the Bonds, enforceable by the Bondholders in accordance with the terms thereof. Under Section 679.1091(4)(n), Florida Statutes, transfers by a government or a governmental unit are exempt from the perfection and priority requirements of Chapter 679, Florida Statues (Uniform Commercial Code - Secured Transactions - Article 9). SECTION 15. AMENDMENTS. Pursuant to Section 4.1 of the Bond Resolution, the following amendments will become effective upon adoption of this Resolution (the written consent of the Bond Insurer, in its capacity as insurer of the Series 1999 Bonds, already having been obtained): (A) At such time, Section 3.4(C)(iii) shall be amended and restated in its entirety to read as follows: (iii) Revenues shall next be used, to the full extent necessary, for deposits into the Debt Service Reserve Account on the twenty- fifth (25th) day of each month in each year, beginning with the twenty-fifth (25th) �Vay of the first full calendar month following the date on which any or all of the Bonds issued hereunder are delivered to the rchasers thereof such sums as shall be at least sufficient to pay an amount which, assuming twelve equal monthly deposits beginning on the twenty-fifth (25th) day of the calendar month after such deficiency occurred, will equal one - twelfth (1/12th) of the difference between the amount on deposit in the Debt ServicO Reserve Account on the date the deficiency occurred, and the �eserve Requirement; provided, further, that no payments shall i be required to be made into the Debt Service Reserve Account v henever and as long as the amount deposited therein (including any Reserve Account Insurance Policy or Reserve Account Letter of Credit) shall be equal to the Reserve Requirement. Notwithstanding t�e foregoing provisions, in lieu of the required deposits of Revenujes into the Debt Service Reserve Account, the City may cause to be deposited into the Debt Service Reserve Account a Reserve Account Insurance Policy or a Reserve Account Letter of Credit for the benefit of the Bondholders in an amount equal �o the difference between the Reserve Requirement and �he sums then on deposit in the Debt Service Reserve Account, if any, which Reserve Account Insurance Policy or Reserve (Account Letter of Credit shall be payable or available to be drawn upon, as the case may be, upon the giving of notice as required thereunder) on any Interest Payment Date on which a deficiency exists which cannot be cured by moneys in any other fund or account held pursuant to this Resolution and available for such urpose. If a disbursement is made under the Reserve Account I surance Policy or the Reserve Account Letter of Credit, the City shall be obligated to either reinstate the maximum limits of such Reserve Account Insurance Policy or Reserve Account setter of Credit immediately following such disbursement so hat amounts on deposit therein equal the Reserve Requireent, or to deposit into the Debt Service Reserve Account tom the Revenues, as herein provided, funds in the amount of Ithe disbursement made under such Reserve Account Insurancel, Policy or Reserve Account Letter of Credit, in twelve (12) equalonthly installments as provided in the first paragraph of this ection 3.4(C)(iii). In the event that 4ny moneys shall be withdrawn from the Debt Service Reserve Account for payments into the Interest Account, Principal Account and Bond Redemption Account, such withdrawals shall be subsequently restored in accordance with the first paragraph of this Section 3.4(C)(iii) from the Pledged Revenues available after all required payments have been made into the Interest Account, Principal Account and Bond Redemption Account, including any deficiencies for prior payments unless restored by the reinstatement of the maximum limits of the Reserve Account Insurance Policy or Reserve Account Letter of Credit. Moneys in the Debt Service Reserve Account shall be used for the purpose of making payments into the Interest Account, Principal Account and Bond Redemption Account when the moneys in the Revenue Account are insufficient therefor. Any moneys in the Debt Service Reserve Account in excess of the Reserve Requirement for the Bonds and any Additional Parity Bonds hereafter issued shall be transferred to the Construction Fund during construction of a Project and thereafter to the Revenue Account. If a disbursement is made from a Reserve Account Insurance Policy or a Reserve Account Letter of Credit (each a "Reserve Account Instrument"), the City shall reinstate the maximum limits of such Reserve Account Instrument immediately following such disbursement from moneys paid into the Debt Service Reserve Account in accordance with the foregoing provisions of this Section 3.4(C)(iii). In addition, and in the same manner, the City shall reimburse the issuer of the Reserve Account Instrument for all reasonable expenses incurred by such issuer in connection with the draw upon the Reserve Account Instrument, together with interest on unpaid amounts as set forth in the Reserve Account Instrument or a related agreement. The obligations of the City to make payments to the issuer of any Reserve Account Instrument shall not be a general obligation of the City but shall be payable from Pledged Revenues in the manner provided herein. The Debt Service Reserve Account shall be valued at least once in each Fiscal Year. f; 1 1 1 (B) At such time, the Article III of the Bond Resolution: (L) Eli ibility covenants and eligible under a Revenues. owing Section 3.4(L) is added to the end of Receive Sales Tax Revenues. The City yes to take all actions necessary to remain iiable law to continue to receive Sales Tax SECTION 16. PRIOR RESOUTIONS. All prior resolutions of the City inconsistent with the provisions of t e Bond Resolution are hereby amended and supplemented to conform with the pr visions herein contained and, except as may otherwise amended and supplemente hereby, the Bond Resolution shall remain in full force and effect. SECTION 17. NO PERSONA LIABILITY. Neither the members of the City Commission nor any person xecuting the Series 2002 Bonds shall be personally liable therefor or be subjec� to any personal liability or accountability by reason of the issuance thereof. i SECTION 18. GENERAL AU*ORITY. The Mayor or Vice Mayor, the City Manager or assistant or deputy City Manager, the Director of Finance or assistant or deputy Director of Finance, the City Attorney or assistant or deputy City Attorney and any other proper officials of the City are hereby authorized to do all acts and things required of them b� this Resolution, the Bond Resolution, the Official Statement, the Series 2002 Bonds, or any other agreement or contract relating to the Series 2002 Bonds, or that may otherwise be desirable or consistent with accomplishing the full, punctual and complete performance of all the terms, covenants and agreements contained in any of the foregoing and each member, employee, attorney and officer of tho City is hereby authorized and directed to execute and deliver any and all 0apers and instruments, including without limitation tax returns, non -arbitrage certificates, and various other certificates, and to cause to be done any and all acts aid things necessary or proper for carrying out the transactions contemplated thereby. SECTION 19. SEVERABILIT-g 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 lajw or contrary to the policy of express law, but 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 *om the remaining covenants, agreements or provisions and shall in no way affect the validity of the other provisions hereof or of the Series 2002 Bonds. SECTION 20. BOND RESOLUTION TO CONTINUE IN FORCE. Except as herein expressly provided in Section 15 hereof, the Bond Resolution and all the terms and provisions thereof, are and shall remain in full force and effect. [Remainder of page intentionally left blank] 1.1 I E SECTION 21. EFFECTIVE immediately upon its adoption. PASSED,ADOPTED,AND AT EST: �L40� MARION SWE ON, CMC CITY CLERK I HEREBY CERTIFY that I have approved this R MLUTION as to form. CITY ATTORNEY TE. This Resolution shall be effective D this Bch day of May, 2002. JOE SCHREIBER MAYOR RECORD O� COMMISSION VOTE: M OR SCHREIBER AM DI 1: V/M. PORTNER_6yg .+�ecL DI 2: COMM. MISHKIN_EA!!P DI 3: COMM. SULTANOF_Aye� DI 4: COMM. ROBERTS Agee. V- �F CONTRACT [-- CITY OFT MARAC, FLORIDA SALES TAX REVENUE BONDS, SI RIES 2002 BOND PUR�HASE CONTRACT May 12002 Honorable Members of the City Commission of the City of Tamarac, Florida 7525 N.W. 88th Avenue Tamarac, Florida 33321 Ladies and Gentlemen: The undersigned, William R. Hough & Co. (the "Underwriter"), offers to enter into this Bond Purchase Contract (this "Agreement") with the City of Tamarac, Florida (the "City"), which, upon the acceptance of this offer anj the execution of this Agreement by the City, shall be in full force and effect in accordance with its terms and shall be binding upon the City and the Underwriter. This offer is made subject to your acceptance and execution of this Agreement on or before 10:00 p.m., Eastern Time, on thO date hereof, and, if not so accepted, will be subject to withdrawal by the Underwriter upon orall or written notice delivered by the Underwriter to the City at any time prior to the acceptance hereof by the City. Unless otherwise indicated, capitalized terms used herein without definitions sh4l have the meanings ascribed thereto in the Bond Resolution (hereinafter defined). Purchase of Bonds: SecurityiDeposit, (a) Upon the terms and conditions and upon the basis of the representations, warranties and agreements hereinafter set forth, the Underwriter hereby agrees to purchase from the City, and the City hereby agrees to issuo, sell and deliver to the Underwriter, all (but not less than all) of the $ aggregate principal amount of City of Tamarac, Florida Sales Tax Revenue Bonds, Series 2002 (the "Series 2002 Bonds"), at a purchase price of $ (representing % of the principal amount thereof, taking into account a net original issue discount/premium of $ and a* Underwriter's discount of $ ) (the "Purchase Price"). The Underwriter agreels to make a bona fide public offering of substantially all of the Series 2002 Bonds to the public at ,' itial public offering prices not greater than (or yields not less than) the initial public offering pTjrices (or yields) set forth in the Official Statement (hereinafter defined); provided, however that the Underwriter reserves the right to make OR475934;7 concessions to certain dealers, certain dealer banks and banks acting as agents and to change such initial public offering prices as the Underwriter shall deem necessary in connection with the marketing of the Series 2002 Bonds. (b) The Underwriter has delivered to the City herewith a corporate check in the amount of $135,000A0 as a security deposit, payable to the City. In the event you do not accept this offer, such check shall be immediately returned to the Underwriter uncashed. If this offer is accepted, the check will be held uncashed as security for the performance by the Underwriter of its obligations to purchase, to accept delivery of and to pay for the Series 2002 Bonds at the Closing (hereinafter defined) and if the Underwriter so performs, shall be returned to the Underwriter on the Closing Date. In the event of your failure to deliver the Series 2002 Bonds at the Closing, or if you shall be unable to satisfy the conditions of the obligations of the Underwriter contained herein, or if the obligations of the Underwriter shall be terminated for any reason permitted by this Agreement, the check shall be immediately returned to the Underwriter uncashed, and such return shall constitute a full release and discharge of all claims by the Underwriter arising out of the transactions contemplated hereby. In the event that the Underwriter fails (other than for reasons permitted hereunder) to accept delivery of and to pay for the Series 2002 Bonds at the Closing, the check shall be cashed and the proceeds thereof retained by you as and for full liquidated damages for such failure and for any defaults hereunder on the part of the Underwriter, and such retention shall constitute a full release and discharge of all claims by the City against the Underwriter arising out of the transactions contemplated hereby. 2. The Series 2002 Bonds. The Series 2002 Bonds shall be as described in, and shall be issued and secured under and pursuant to, Chapter 166, Florida Statutes, the Constitution of the State of Florida, the municipal Charter of the City and other applicable provisions of law (collectively, the "Act") and Resolution No.98-156 adopted by the City Commission ofthe City (the "City Commission") on May 27, 1998 (as supplemented and amended from time to time, and as particularly replaced by Resolution No. 99-178 adopted by the City Commission on July 14, 1999 and as further supplemented and amended by Resolution No. 99-192 adopted by the City Commission on July 14, 1999, and as supplemented and amended by Resolution No. R-2002- adopted by the City Commission on , 2002) (collectively, the "Bond Resolution"). In connection with the public offering of the Series 2002 Bonds, the Underwriter has delivered to the City a letter containing the information required by Chapter 218.385(6) of the Florida Statutes which letter is attached hereto as Exhibit "A." The Series 2002 Bonds shall mature on the dates and in the amounts, bear interest at the rates and be subject to redemption all as set forth on Exhibit " B " hereto. 3. Purpose of the Series 2002 Bonds. The City is proposing to issue the Series 2002 Bonds to provide funds to (i) construct certain City owned capital projects, and (ii) finance the OR475934;7 2 • 0 is costs of issuance of the Series 2002 Bonds Policy premiums. It shall be a condition to the to the Underwriter, and the obligation of th Series 2002 Bonds, that the entire aggregat sold and delivered by the City and paid for the Policy and Debt Service Reserve Account of the City to sell and deliver the Series 2002 Bonds Underwriter to purchase and accept delivery of the principal amount of the Series 2002 Bonds shall be ry the Underwriter at the Closing. 4. Truth -In -Bonding Statement. �fhe Series 2002 Bonds are expected to be repaid over a period of approximately years. At the interest rates set forth in Exhibit B hereto, total interest paid over the life of the Series 20021 Bonds will be $ . As described in the Bond Resolution, the source of repaymeit or security for the Series 2002 Bonds are the Sales Tax Revenues (as defined in the Bond Resol tion). Authorizing the Series 2002 Bonds will result in a maximum of $ of suco Sales Tax Revenues not being available to finance other services of the City each year over tho approximate year period. 5. Official Statement. As soon a practicable after the date hereof, and, in any event, no later than seven (7) business days after die date hereof (or within each shorter period as may be requested by the Underwriter in order to accompany any confirmation that requests payment from any customer or to comply with Rule C -32 of the Municipal Securities Rule -Making Bond), but no later than three business days pr' r to closing, the City shall, so as to enable the Underwriter to comply with the provisions of the Securities and Exchange Commission ("SEC") Rule 15c2-12 (the "Rule"), deliver to the Un lerwriter a sufficient number of printed copies of the final Official Statement with respect to the S ries 2002 Bonds, dated the date hereof (including the cover page, the summary statement and the appendices contained therein, the "Official Statement"), together with all supplements 4nd amendments thereto, substantially in the form of the Preliminary Official Statement, with o�y such changes as shall have been accepted by the Underwriter. 6. Use of Preliminary Official P tatement and Official Statement. The City hereby authorizes and ratifies the use by the Underwriter of the Preliminary Official Statement, dated , 2002 (which, together *ith the cover page, summary statement and all appendices included therein is herein called t) a "Preliminary Official Statement"), prior to the date hereof, and authorizes the use by the Underw vriter of the Official Statement, as the same may be modified, amended or supplemented upon ij utual agreement of the City and the Underwriter in connection with the public offering and sale of the Series 2002 Bonds. 7. Conditions Precedent to Ex ution of this Agreement by the Underwriter. On or before the acceptance by the City of this A reement, the City shall deliver to the Underwriter, together with such reasonable number of copies thereof as the Underwriter may request, certified copies of the Bond Resolution. OR475934;7 13 8. Representations and Warranties of the City. The City represents and warrants to the Underwriter as follows: (a) As of their respective dates, at the time of acceptance hereof and at the time of Closing, the statements and information contained in the Preliminary Official Statement (other than as modified in the Official Statement), the Official Statement, and this Agreement (excluding the information relating to The Depository Trust Company and its book entry system and the Insurer, the Policy and the Debt Service Reserve Account Policy as to all of which no warranty or representation is given are and will be true, complete and accurate in all material respects for the purposes for which their use is authorized, and do not and will not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. In addition, any amendments to the Official Statement prepared and furnished by the City pursuant hereto will not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. (b) As of its date, the Preliminary Official Statement was deemed "final" by the City for purposes of paragraph (b)(1) of the Rule and as of this date, the Official Statement is deemed "final" by the City for purposes of the Rule. (c) The City has duly authorized the execution, delivery and due performance of this Agreement. (d) When executed and delivered by the City in accordance with the provisions of this Agreement, the Series 2002 Bonds will have been duly authorized by the City, in the manner required under applicable law, executed, issued and delivered and will constitute valid and binding special obligations of the City, enforceable against the City in accordance with their terms, in conformance with the Act and the Bond Resolution, such enforceability being subject to bankruptcy, insolvency, reorganization, moratorium or similar laws, relating to or affecting the enforcement of creditors' rights generally and to the exercise of judicial discretion in accordance with general principles of equity. (e) The adoption by the City of the Bond Resolution and the execution and delivery by the City of this Agreement, the Series 2002 Bonds, the City's Continuing Disclosure Certificate in regard to the Series 2002 Bonds (the "Continuing Disclosure Certificate"), the Debt Service Reserve Account Agreement between the City and the Insurer (hereinafter defined), the Paying Agent Agreement, and any other documents executed and delivered by the City in connection with the issuance of the Series 2002 Bonds (collectively, together with the Bond Resolution, the "Bond Documents") and the compliance by the City with the provisions thereof will not in any material respect conflict with or result in a breach or violation of any of the terms OR475934:7 4 • C� 1-1 or provisions of, or constitute a material d which the City is a party or by which the regulation, court order or consent decree toll (f) The City will furnish such other action in cooperation with the Un to (i) qualify the Series 2002 Bonds for offe or regulations of such states and other ju Underwriter may designate and (ii) deter investment under the laws of such states ai continue such qualifications in effect so for Bonds. This paragraph shall not, however, i of any state other than Florida. under, any agreement or other instrument to is bound, or any existing law, administrative a the City or its property is subject. uch information, execute such instruments and take -.rwriter as the Underwriter may reasonably request, and sale under the Blue Sky or other securities laws isdictions of the United States of America as the line the eligibility of the Series 2002 Bonds for 1 other jurisdictions and will use its best efforts to as required for the distribution of the Series 2002 quire the City to submit to the jurisdiction of a court (g) Between the date oft 's Agreement and the time of Closing, the City will not execute any bonds, notes or other obliga#ions for borrowed money secured by the Sales Tax Revenues, other than the proposed issuance of which is referred to explicitly in the Official Statement, without giving prior written noti� thereof to the Underwriter. (h) The City is, and will Oe at the date of Closing, duly organized and validly existing as a municipal corporation under tho Constitution and laws of the State of Florida, with the power and authority set forth in the Acts (i) The City (i) has full le al power and authority to adopt and execute the Bond Resolution; to execute and deliver this Agr ement and the other Bond Documents; to execute, issue, sell and deliver the Series 2002 Bond; and to carry out and consummate the transactions contemplated by this Agreement, the Offici 1 Statement and the other Bond Documents; (ii) has in full force and effect all consents, appro�als, permits or other actions by or filings with any governmental authority required for the execution and delivery by the City of this Agreement and the other Bond Documents, for the adoption'of the Bond Resolution, and for the performance by the City of the financing transactions contemplated thereby; (iii) represents that from the time of acceptance by the City hereof through the bate of the Closing, except as contemplated by the Official Statement, the City will not incur apy liabilities, direct or contingent, or enter into any transaction that could materially adversely alffect the transactions contemplated hereby or by the Bond Documents, and there shall not have �een any material adverse change in the condition, financial or physical, of the City that could 4dversely affect the transactions contemplated hereby other than changes in the ordinary course of business or in the normal operation of the facilities operated by the City; (iv) represents that the execution and delivery by the City of this Agreement and the other Bond Documents, and the a4option, as applicable, of the Bond Resolution, the compliance by the City with the provisions thereof, and the carrying out and consummation by the City of its obligations under such document$ and instruments will not conflict with or constitute OR475934;7 5 a material breach of or a default under any law, administrative regulation, court decree, instrument or agreement to which the City is subject or by which the City is or any of its properties are bound; and (v) represents that it has complied with the eligibility requirements for the receipt of the Sales Tax Revenues. 0) If between the date of this Agreement and the date which is twenty-five (25) days from the end of the underwriting period (as such term is defined in paragraph (e)(2) of the Rule) any event shall occur which, in the opinion of the City, would cause the Official Statement, as then supplemented or amended, to contain any untrue statement of a material fact or to omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, the City shall notify the Underwriter and, if in the reasonable opinion of the Underwriter, such event requires the preparation and publication of a supplement or amendment to the Official Statement, the City will at its expense supplement or amend the Official Statement in a form and in a manner approved by the Underwriter and provide the Underwriter with sufficient copies of such supplement or amendment so as to enable the Underwriter to comply with the provisions of paragraph (b)(4) of the Rule. (k) Except as disclosed in the Official Statement, 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 knowledge of the City, threatened against or affecting the City, affecting or seeking to prohibit, restrain or enjoin the sale, issuance or delivery of the Series 2002 Bonds or contesting the validity or enforceability of the Act in any respect relating to authorization for the issuance of the Series 2002 Bonds, the adoption of the Bond Resolution or the eligibility of the City to receive the Sales Tax Revenues or contesting the pledge of the Sales Tax Revenues to secure payment of the Series 2002 Bonds or contesting the collection and application of the Sales Tax Revenues in accordance with the provisions of the Bond Resolution or contesting the exclusion from gross income for federal income tax purposes of interest on the Series 2002 Bonds, or contesting the completeness or accuracy of the Official Statement or any supplement or amendment thereto, or contesting the powers or the authority of the City for the issuance of the Series 2002 Bonds, the adoption of the Bond Resolution, or the execution and delivery by the City of this Agreement and the other Bond Documents or wherein an unfavorable decision would otherwise have a material adverse effect on the financial condition of the City in the City's right to receive the Sales Tax Revenues. (1) The City is lawfully empowered to pledge and grant a first lien upon the Sales Tax Revenues for payment of the principal of, redemption premium, if any, and interest on the Series 2002 Bonds. The lien of the Series 2002 Bonds on the Sales Tax Revenues is on a parity with the lien thereon of the Series 1999 Bonds. (m) The City will not take or omit to take any action which action or omission will in any way cause the proceeds from the sale of the Series 2002 Bonds to be applied in a QR475934;7 6 manner contrary to that provided for in Statement. Bond Resolution and as described in the Official (n) The City has undertaken pursuant to the Continuing Disclosure Certificate to comply with the provisions of the Rule, as defined in Paragraph 5 above, by providing certain annual financial and statistical information, Audited Financial Statements and notice of Listed Events, as described in the Continuing Di closure Certificate. The City has never, except as described in the Official Statement, failed to comply with any undertakings pursuant to the continuing disclosure provisions of the Rulo. A description of the City's undertaking is also set forth in the Preliminary Official Statement grid will also be set forth in the Official Statement. (o) The City has not bee notified of any listing or proposed listing by the Internal Revenue Service to the effect that it is a bond issuer whose arbitrage certification cannot be relied upon. (p) Subsequent to the datO of the last audited financial statements included in the Preliminary Official Statement, there hive been no material adverse changes in the assets, liabilities, or condition of the City, financial or otherwise. (q) At the time of acceptance hereof and as of the Closing Date, the financial statements contained as an appendix to the Official Statement and the financial and operating data included in the Official Statement fairly prsent the financial position of the City as of the date and for the periods set forth therein in actor nce with GAAP applicable to governmental bodies, consistently applied. 9. The Closing. At 10:00 a.m., blew York time, on , 2002, or on such later time or date as may be mutually agreed upon by the City and the Underwriter (such time and date being herein referred to as the "Closing Date"), the City will, subject to the terms and conditions hereof, deliver the Series 2002 Bonds to The Depository Trust Company ("DTC") in New York, New York or an agent of DTC lin such form as shall be acceptable to DTC (which shall include printed or typewritten Series �002 Bonds if and to the extent required by DTC, registered in the name of its nominee, duly executed), and deliver to the Underwriter the other documents hereinafter mentioned; and, subject to the terms and conditions hereof, the Underwriter will pay the purchase price of the Series 2002 Bonds as set forth in Paragraph 1 (a) hereof in federal funds or other immediately available moneys drawn to the order of the City and the check delivered to the City pursuant to Paragraph I! (b) hereof shall be returned to the Underwriter (such delivery of and payment for the Series 2002I Bonds is herein called the "Closing"). The City shall cause CUSIP identification numbers provided by the Underwriter to be typed on the Series 2002 Bonds, but neitherlthe failure to type such numbers on any Series 2002 Bonds nor any error with respect thereto shall constitute cause for a failure or refusal by the OR475934-17 7 Underwriter to accept delivery of and pay for the Series 2002 Bonds in accordance with the terms of this Agreement. The Closing (except for delivery of the Series 2002 Bonds to DTC) shall occur at the offices of the City or such other location as shall be agreed upon between the parties hereto. 10. Conditions of Closing. The Underwriter has entered into this Agreement in reliance upon the representations and warranties of the City herein contained and the performance by the City of its obligations hereunder, both as of the date hereof and as of the time of Closing. The obligations of the Underwriter hereunder are subject to the following conditions: (a) At the time of the Closing, (i) the Bond Documents, and any other documents deemed necessary in connection with the issuance of the Series 2002 Bonds shall be in full force and effect and shall not have been amended, modified or supplemented in any material respect prior to the Closing, except as may have been agreed to in writing by the City and the Underwriter, and the City shall have duly enacted and/or adopted, as applicable, and executed and there shall be in full force and effect the Bond Resolution and such additional resolutions, or ordinances or agreements as shall, in the opinion of Mitchell S. Kraft, Esq., Counsel to the City, Bryant, Miller and Olive, P.A., Bond Counsel, or Akerman, Senterfitt & Eidson, P.A., Disclosure Counsel, be necessary in connection with the issuance of the Series 2002 Bonds, (ii) the representations and warranties of the City herein shall be true and accurate in all material respects and (iii) the City shall perform or have performed all obligations required under or specified in this Agreement and the other Bond Documents to be performed at or prior to the Closing. (b) At or prior to the Closing, the Underwriter shall have received the following documents: (i) The approving opinion of Bond Counsel, dated the Closing Date, substantially in the form appended to the Official Statement and a letter of such Bond Counsel, dated the date of Closing and addressed to the Underwriter, to the effect that the foregoing opinion addressed to the City may be relied upon by the Underwriter to the same extent as if such opinion were addressed to it. (ii) The supplemental opinion of Bond Counsel, dated the date of the Closing and addressed to the Underwriter to the effect that: (A) the Series 2002 Bonds are not required to be registered under the Securities Act of 1933, as amended, and the Bond Resolution is not required to be qualified under the Trust Indenture Act of 1939, as amended; and (B) the information contained in the Official Statement (other than financial or statistical information set forth therein) as of its date and as of the Closing Date under oR475934;7 8 • the captions "SUMMARY STATEMENT "Security for the Series 2002 Bonds," " ) only), "DESCRIPTION OF THE SERIES information thereunder relating to DTC ar. THE SERIES 2002 BONDS", (other the Revenues" and "Reserve Policy") and "A extent such information purports to sumrna Bonds are accurate and fair statements of tb that the information contained under the ci law. (under the subcaptions "The Series 2002 Bonds," ditional Parity Bonds" and "Optional Redemption" 002 BONDS" (other than the financial and statistical DTC's book -entry only system), "SECURITY FOR the information under the subcaption "Sales Tax PENDIX B - COMPOSITE RESOLUTION" to the ze portions of the Bond Resolution or the Series 2002 matters set forth or documents referred to therein and don "TAX EXEMPTION" is correct as to matters of (iii) A certificate Or certificates, dated the date of Closing, signed by the Mayor and the City Manager, in form a d substance satisfactory to Bond Counsel and the Underwriter, in which such officials state: (A) that the representations and warranties of the City herein contained are true and correct in all material respects as of the Closing, that the City has satisfied all conditions on its part to be performed or satisfied hereunder at or prior to the Closing, and that the information and statements contained ir� the Official Statement are true, correct and complete in all material respects for the purposes forl which such Official Statement is to be used, and that such information in the Official Statement es not include any untrue statement of a material fact or omits to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were Ode, not misleading; provided, however, that such certification shall not include the informatioconcerning DTC and DTC's book -entry only system and the Insurer and its Policy and Reserve Policy (as all are hereinafter defined) contained in the Official Statement; (B) that n� event affecting the City has occurred since the date of the Official Statement which should be d sclosed in the Official Statement for the purposes for which it is to be used or which is necessary be disclosed therein in order to make the statements and information therein not misleading in 4ny material respect; (C) that t#e financial statements and the other financial and statistical data relating to the City and the $ales Tax Revenues included in the Official Statement are true and correct as of their dates and nol event has occurred since such dates that would cause such statements and data not to be materialjy correct as of the Closing Date; (D) that since the date of the financial statements included in the Official Statement, (i) no material adverse phange has occurred in the financial condition of the City and (ii) the City has not incurred any aterial liabilities other than in the ordinary course of business, except as set forth in or contemplated by the Official Statement; oR475934;7 9 (E) that no obligations issued or guaranteed by the City are in default as to payment of principal or interest or have been in default as to payment of principal or interest at any time after December 31, 1975 (except with respect to conduit issues for which the City has no repayment obligation as to which no representation is made). (F) the City has in the current fiscal year and in all prior fiscal years taken all necessary actions required to receive the Sales Tax Revenues. (iv) An opinion, dated the date of Closing, of Counsel to the City, addressed to the City and to the Underwriter, in form and substance satisfactory to the Underwriter, substantially to the effect that: (A) The City is a municipal corporation, duly organized and existing under and pursuant to the Constitution and laws of the State of Florida and is authorized (a) to issue the Bonds, (b) to secure the Bonds in the manner contemplated by the Bond Resolution, and (c) to adopt the Bond Resolution. (B) The adoption of the Bond Resolution, the execution and delivery by the City of the Bonds, the Continuing Disclosure Certificate dated as of , 2002, (the "Continuing Disclosure Certificate"), the Paying Agent and Registrar Agreement dated as of , 2002 (the "Paying Agent Agreement") and the Debt Service Reserve Account Agreement and compliance with the provisions thereof will not conflict with or constitute breach of or default under the existing law, ordinance, administrative regulation, court decree, resolution or agreement to which the City is subject. (C) The City has the power and statutory authority under the Constitution and laws of the State of Florida to pledge, and by the Bond Resolution has pledged, the Pledged Revenues, consisting of the Sales Tax Revenues, all as defined in the Bond Resolution. A The Bond Resolution has been duly adopted, and the Continuing Disclosure Certificate, the Paying Agent Agreement, the Debt Service Reserve Account Agreement and the Bonds have been duly authorized, executed and delivered by the City and each constitute valid and binding agreements of the City enforceable in accordance with their terms (subject as to enforceability any remedies to any applicable bankruptcy or insolvency laws or other laws affecting creditors' rights generally, from time to time in effect.) (E) Except as disclosed in the Official Statement dated 2002, in regard to the Bonds (the "Official Statement"), no litigation or other proceedings are pending or threatened in any court or other tribunal of competent jurisdiction, state or federal, in any way (a) restraining or enjoining the issuance, sale or delivery OR475934;7 10 • of any of the Bonds; or (b) questioning or of ecting the validity of the Bonds, the Resolution, the Continuing Disclosure Certificate, the Pa3 'ng Agent Agreement, the Debt Service Reserve Account Agreement or the pledge by the Cit of the Pledged Revenues or any monies, investment income or other security provided under the esolution; or (c) questioning or affecting the validity of any of the proceedings of the authorization , sale, execution, registration, issuance or delivery of the Bonds; or (d) questioning or affectingl the organization or existence of the City or the title to office of the officers thereof, or the po*er or authority of the City to pledge the Pledged Revenues as defined in the Bond Resolution; or (e) which could materially adversely affect the operation of the City or the financial condition of the City. M The Official Statement has been duly approved, authorized, executed and delivered to the City for distribution in connection with the offering and sale of the Bonds. (G) Nothin has come to my attention to lead me to believe that the information contained in the Official Statement relating to the City (except financial and statistical information thereof as to which $io opinion is expressed), as to legal matters only, contains any untrue statement of material fact or omits to state any material fact required to be stated therein or necessary to make the stat�rnents therein, in light of the circumstances under which they were made, not misleading. (H) All ap*ovals, authorizations, permits, consents and orders of any governmental authority, legislative bcoy, board, commission or agency having jurisdiction in the matter, which would constitute a cond ion to the performance by the City of its obligations hereunder or under the Bond Resolution arel in full force and effect. (I) All co itions precedent to the issuance of the Series 2002 Bonds contained in resolutions or ordinanc of the City have been complied with. (v) An opinion of Disclosure Counsel dated the date of the Closing and addressed to the City with a reliance letter to the Underwriter to the effect that based upon their participation in the preparation of the Of$cial Statement and without having undertaken to determine independently the accuracy, completeness or fairness of the statements contained in the Official Statement, as of the Closing Date Inothing has come to the attention of such Counsel causing them to believe that the Official Statement as of its date contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or to make the statements therein, in the light of the circumstances under which they were made, not misleading (except for the financial and statistical information contained in the Official Statement and information in the Official Statement relating to DTC, the DTC Book -Entry Only system, the Insurer and its Policy and Debt Service Reserve Account Policy, as to all of which no view need be expressed). oR475934;7 11 0 (vi) The written consent of Rachlin, Cohen & Holtz LLP, certified public accountants, to the use of their report as an appendix to the Preliminary Official Statement and the Official Statement for the City's audit for the fiscal year ended September 30, 2001 and the references to their name therein. (vii) A letter from Standard and Poor's Ratings Services ("S&P") and a letter from Moody's Investors Service, Inc. ("Moody's") confirming that such rating agencies have issued ratings of "AAA" and "Aaa" respectively, for the Series 2002 Bonds, conditioned upon the delivery of the Municipal New Issue Bond Insurance Policy (the "Policy") by Financial Guaranty Insurance Company (the "Insurer"). (viii) An executed copy of each of the Bond Documents. (ix) A Certificate of an authorized representative of U.S. Bank National Association (the "Bank") as Bond Registrar and Paying Agent to the effect that: (A) the Bank is a national banking association organized, validly existing and in good standing under the laws of the United States and is duly authorized to serve as Bond Registrar and Paying Agent for the Series 2002 Bonds; (B) the Bank has all the requisite authority, power, licenses, permits and franchises, and has full corporate power and legal authority to execute and perform its functions under the Bond Resolution and the Paying Agent Agreement; (C) the performance by the Bank of its functions under the Bond Resolution will not result in any violation of any organizational documents of the Bank, any court order to which the Bank is subject or any agreement, indenture or other obligation or instrument to which the Bank is a party or by which the Bank is bound, and no approval or other action by any governmental authority or agency having supervisory authority over the Bank is required in order for the Bank to perform its functions under the Bond Resolution; and (D) to the best of such authorized representative's knowledge, there is no action, suit, proceeding, or investigation at law or in equity before any court, public board or body pending or, to his or her knowledge, threatened against or affecting the Bank wherein an unfavorable decision, ruling or finding on an issue raised by any party thereto is likely to materially and adversely affect the ability of the Bank to perform its obligations under the Bond Resolution. (x) A duly executed copy of the Policy and the Municipal Bond Debt Service Reserve Fund Policy of the Insurer (the "Reserve Policy"). OR475934;7 12 • (xi) An opinion If eneral counsel to the Insurer and certificates of an officer of the Insurer dated the date of thesing and addressed to the Underwriter, concerning the Insurer, the Policy, the Reserve Policyd the information relating to the Insurer, the Policy and the Reserve Policy, contained in the Oial Statement, in form and substance satisfactory to the Underwriter and Counsel for the Undriter. (xii) A certificate t xecuted by the appropriate officer of the City, dated the Closing Date, satisfactory to Bond Cou el setting forth the facts, estimates and circumstances which establish that it is not expected that t e proceeds of the Series 2002 Bonds will be used in a manner that would cause the Series 2002 onds to be "arbitrage bonds" within the meaning of the Internal Revenue Code of 1986, as am ed, and to the best of the knowledge and belief of such officer, such expectations are reasons (xiii) Letters from W and Moody's, confirming the underlying ratings as set forth under the caption "RATINGS" lin the Official Statement; (xiv) Such the City, Bond Counsel, Disclosure 11. Termination. The Underwri the Underwriter to the City, if at the time by the Congress of the United States or a( Representatives or recommended by the Pr or favorably reported for passage to either Senate or a decision by a Court of the Unit l certificates, instruments or opinions, as Counsel to or the Underwriter may deem necessary or desirable. may terminate this Agreement by notification from prior to the Closing (a) legislation shall be enacted ►ted by either the United States Senate or House of dent of the United States to the Congress for passage )use of Congress by any committee of the House or States, including the United States Tax Court shall be rendered or a ruling, regulation or official statement by or on behalf of the Treasury Department of the United States, the Interns Revenue Service, or other governmental agency shall be made, with respect to federal taxation of interest upon the Series 2002 Bonds or other action or events shall have occurred which have the purpose or effect, directly or indirectly, of materially adversely affecting the federal income tax Consequences of any of the transactions contemplated in connection herewith, which in the reasonable opinion of the Underwriter, materially adversely affects the market for the Series 2002 Bons or the sale by the Underwriter of the Series 2002 Bonds; or (b) legislation shall be enacted! or any action shall be taken by the Securities and Exchange Commission ("SEC") which, in the reasonable opinion of the Underwriter, has the effect of requiring the contemplated distrib*tion of the Series 2002 Bonds to be registered under the Securities Act of 1933, as amended, on the Bond Resolution to be qualified under the Trust Indenture Act of 1939, as amended, or there shall exist a stop order, ruling or regulation by the SEC the effect of which is that the issua4tce, offering or sale of the Series 2002 Bonds, as contemplated hereby or by the Official Statement, is in violation of any provision of the Securities Act of 1933, as amended and as then in effect, or of the Securities Exchange Act of 1934, as amended and as then in effect, or that th4 Bond Resolution is not exempt from qualification OR475934;7 13 11 pursuant to the Trust Indenture Act of 1939, as amended and as then in effect; or (c) there shall exist any event which in the reasonable judgment of the Underwriter either (i) makes untrue or incorrect in any material respect any statement of information contained in the Official Statement or (ii) is not reflected in the Official Statement but should be reflected therein or in an attachment thereto in order to make any statement and the information contained therein not misleading in any material respect; or (d) there shall have occurred any outbreak or escalation of hostilities or other national or international calamity or crisis, the effect of such outbreak, calamity or crisis on the financial markets or the United States being such as to materially adversely affect the marketability of the Series 2002 Bonds (it being agreed by the parties hereto that no such outbreak, calamity or crisis exists as of the date hereof which would materially adversely affect the marketability of the Series 2002 Bonds); or (e) there shall be in force a general suspension of trading or other material restrictions not now in force on the New York Stock Exchange; or (f) a general banking moratorium shall have been declared by either federal, Florida or New York authorities having jurisdiction and then in force the effect of which on the financial markets of the United States is such as, in the reasonable judgment of the Underwriter, would materially adversely affect the market for the Series 2002 Bonds or the sale or distribution by the Underwriter of the Series 2002 Bonds; or (g) except as disclosed in the Official Statement any litigation shall be instituted or be pending at Closing to restrain or enjoin the issuance, sale or delivery of the Series 2002 Bonds or that in any way contests or affects any authority for the validity of the Series 2002 Bonds or any of the Bond Documents, the pledge or application of any moneys or securities provided for the payment of the Series 2002 Bonds or the existence or powers of the City; or (h) the City has, without prior written consent of the Underwriter, offered or issued any bonds, notes or other obligations for borrowed money, or incurred any material liability for borrowed money, or incurred any material liability direct or indirect, in each case secured by the Sales Tax Revenues, or there has been an adverse change of a material nature in the financial position, results of operation or condition, financial or otherwise, of the City in all cases other than in the ordinary course of its business, or other than as contemplated in the Official Statement, which change could materially adversely affect the transactions contemplated hereby. This Agreement shall also be subject to termination in the absolute discretion of the Underwriter, by notice given to the City prior to delivery of and payment for the Bonds, if at any time prior to such time (i) trading in the City's outstanding securities shall have been suspended by the Securities and Exchange Commission or trading in securities generally on the New York Stock Exchange or the American Stock Exchange or the Nasdaq National Market shall have been suspended or limited or minimum prices shall have been established on either of such Exchanges; (ii) a banking moratorium shall have been declared either by Federal or New York State authorities; or (iii) there shall have occurred any outbreak or escalation of hostilities, declaration by the United States of a national emergency or war or other calamity or crisis (it being agreed by the parties hereto that no such hostilities, declaration, emergency, war, calamity or crisis exists as of the date hereof) the effect of which on financial markets is such as to make it, in the reasonable sole judgment of the Underwriter, impractical or inadvisable to proceed with the OR475934:7 14 • offering or delivery of the Series 2002 Bonds! of any amendment or supplement thereto). contemplated by the Official Statement (exclusive If the City shall be unable to satisfy toe conditions to the obligation of the Underwriter to purchase, to accept delivery of and to pay for the Series 2002 Bonds contained in this Agreement and the Underwriter does not waive such inability in writing, or if the obligations of the Underwriter shall be terminated for any reason permitted by this Agreement, this Agreement shall be terminated and neither the Underwrite nor the City shall have any further obligations hereunder, except as provided in Sections 1(, 12 and 13 hereof. However, the Underwriter may, in its discretion, waive, by written notice one or more of the conditions imposed by this Agreement and proceed with the closing, except that the Underwriter may not waiver receipt of the Continuing Disclosure Certificate. 12. Expenses. (a) The Underwriter shall �e under no obligation to pay, and the City shall pay, all expenses incident to the performance of th� City's obligations under this Agreement, including, without limitation, (i) the cost of preparation and printing of the Preliminary Official Statement and the Official Statement (including amendments or supplements thereto), (ii) the cost of the preparation, printing and execution of the Series 2002 Bonds, (iii) the fees and disbursements of Bond Counsel, Disclosure Counsel, the Insurer, Counsel to the City and the City's financial advisor, (iv) the fees and disbursements of the bond registrar, the paying agent, the City's independent certified public accountants and Of any other experts, advisors or consultants retained to assist the City, (v) fees for bond ratings, $nd (vi) the cost of reproducing all necessary copies of any of the Bond Documents. (b) The Underwriter shall pay (a) the cost of all "blue sky" and legal investment memoranda and related filing fees; (b) all adv rtising expenses; and (c) all other expenses incurred by it in connection with the public offering of the Series 2002 Bonds. In the event that either party shall have assumed obligations of the other! as set forth in this Section 12, adjustment shall be made at the time of the Closing or Closing Date. 13. Survival of Contract. The respective agreements, representations and warranties and other statements of the City, the Underwriter and their respective officials and officers and directors set forth in, or made pursuant to, ;this Agreement will remain in full force and effect regardless of any investigation, or statement has to the results thereof, made by or on behalf of the City, the Underwriter or any of their respective officials, officers or directors or any controlling person, and will survive delivery and paym4nt of the Series 2002 Bonds. OR475934;7 15 14. Benefit. This Agreement is made for the benefit of the parties hereto including the successors or assigns of the Underwriter. No other person shall acquire or have any right hereunder or by virtue thereof. 15. Execution in CounteMarts. This Agreement may be executed in any number of counterparts, all of which taken together shall be one and the same instrument, and any parties hereto may execute this Agreement by signing any such counterpart. The execution of this Agreement has been duly authorized by the City Commission of the City. 16. Notices. Any notices or other communications to be given to the City under this Agreement may be given by mailing the same to the City Manager of the City of Tamarac, Florida at City Hall, 7525 N.W. 88th Avenue, Tamarac, Florida 33321, and any such notice or other communication to be given to the Underwriter may be mailed to William R. Hough & Co., 100 2nd Avenue South, Suite 800, St. Petersburg, Florida 33701, Attention; Kevin Conitz. 17. Severability. The invalidity or enforceability of any provision of this Agreement as to any one or more jurisdictions shall not affect the validity or enforceability of the balance of this Agreement as to such jurisdiction or jurisdictions, of affect in any way such validity or enforceability as to any other jurisdictions. 18. Waiver or Modifications. No waiver or modification of any one or more of the terms and conditions of this Agreement shall be valid unless in writing and signed by the party or parties making such waiver or agreeing to such modification. oR475934;7 16 19. Governing Law. This, with the laws of the State of Florida. ACCEPTED on i i 204 shall be governed by and construed in accordance Very truly yours, William R. Hough & Co. I0 Kevin Conitz, Senior Vice President i i (SEAL) ITHE CITY OF TAMARAC, FLORIDA ATTEST: IBy: Joel Schreiber, Mayor By: iBy: Marion Swenson, CMC, City Clerk Jeffrey L. Miller, City Manager Approved as to form: Mitchell S. Kraft, City Attorney OR475934:7 • 17 EXHIBIT "A" Form of Disclosure Letter pursuant to Section 218.385, Florida Statutes May _, 2002 Members of the City Commission of the City of Tamarac, Florida Tamarac, Florida Re: $ City of Tamarac, Florida Sales Tax Revenue Bonds, Series 2002 Ladies and Gentlemen: In connection with the proposed issuance by the City of Tamarac, Florida (the "City"), of $ in aggregate principal amount of its Sales Tax Revenue Bonds, Series 2002, referred to above (the "Series 2002 Bonds"), William R. Hough & Co. (the "Underwriter") is preparing to underwrite a public offering of the Series 2002 Bonds. Arrangements for underwriting the Series 2002 Bonds will include a Bond Purchase Contract (the "Agreement") between the City and the Underwriter that will embody the negotiations in respect thereof. The purpose of this letter is to have the Underwriter furnish to the City, pursuant to the provisions of Section 218.385(6), Florida Statutes, certain information in respect of the arrangements contemplated for the underwriting of the Series 2002 Bonds as follows: (a) The nature and estimated amounts of expenses to be incurred by the Underwriter in connection with the purchase and offering of the Series 2002 Bonds are set forth in Schedule I attached hereto. (b) The Underwriter has employed no "finders", as defined in Section 218.386, Florida Statutes, as amended, connected with the issuance of the Series 2002 Bonds. (c) The underwriting spread (i.e., the difference between the price at which the Series 2002 Bonds will be initially offered to the public by the Underwriter OR475934;7 A - 1 and the price to be p to the City for the Series 2002 Bonds exclusive of original issue discoun and accrued interest in both cases) will be $ per $1000 par value the principal amount of the Series 2002 Bonds. (d) Based on and as part) of the estimated underwriting spread set forth in paragraph (c) above,' a Underwriter will charge a management fee of $ per $1000 pat value of the principal amount of the Series 2002 Bonds. (e) There is no other fe4, bonus or other compensation to be paid by the Underwriter in tonne tion with the issuance of the Series 2002 Bonds to any person not regula#y employed or retained by the Underwriter, except as specifically enume#ated as expenses referred to in paragraph (a) above to be incurred by the gnderwriter as set forth in Schedule 1 attached hereto. (f) The name and corpor4te headquarters address of the Underwriter is: William R. Hough & Co. 100 2nd Avenue Sout*, Suite 800 St. Petersburg, Florido 33701 We understand that you do not require any further disclosure from the Underwriter pursuant to Section 218.385, Florida Statutos, as amended. OR475934;7 A - 2 Very truly yours, William R. Hough & Co. ILM Kevin Conitz, Senior Vice President SCHEDULEI ESTIMATED EXPENSES ITEM TOTAL OK475934;7 A - 3 TOTAL • MATURITIES, AMOUNTS, MATURITIES (April 1) E OR475934;7 • AMOUNT TEREST RATES, AND YIELDS SERIAL BONDS INTEREST RATE YIELD CUSIP Redemption (To Be Provided) Optional Redemption of Series 2002 Bonds OR475434;7 B - 2 lea-] F RM OF PRELIMINARY FFICIAL STATEMENT PRELIMINARY OFFICIAL STATEMENT DATED MA Y 2002 Ci --"— F n NEW ISSUE- BOOK -ENTRY ONLY RATINGS: See"BOND INSURANCE" and "RATINGS" c herein a `u u O y ° In the opinion of Band Counse4 assuming continuing compliance by the City with various covenants in Ahe Resolution, under w d v exisdngstatuies, rtWulations, andjudicialdecisions, theinterest on die Series 2001 Bonds will be exdudedfrom gross incomeforFederal E c v income tax purposes of die holders thereof and is not an item of tax preference for purposes ofthe Federal alternatiie minimum tax c r imposed on individuals and corporations The Series 2002 Bonds are, under existing laws and regulations, also exempt from intangible ctaxes imposed pursuant to Chapter i99, Florida Statutes, as amended. See "TAX EXEMPTION" herein for a description ofalternative a minimum tax treatment and certain other tax consequences to holders of the Series 2001 Bonds. m v b' $13,275,000* ° CITY OF TAMARAC, FLORIDA SALES TAX REVENUE BONDS, SERIES 2002 c W Dated: May 1, 2002 Doe: April 1, as shown below The City of Tamarac, Florida (the "City") is issuing its Sales Tax Revenue Bonds, Series 2002 (the "Series 2002 Bonds") only ae in the form of fully registered bonds in the denomination of S5,000 principal amount or any integral multiple thereof. The Series 2002 a ,a Bonds will bear interest at the fixed rates setforth below payable semi-annually on each April 1 and October 1, commencing October 1, E b 2002. The Series 2002 Bonds, when issued, will be registered in the name of C ede & Co., as nominee for The Depository Trust Company, F New York, New York ("DTC") which will act as securities depository for the Series 2002 Bonds, Purchases of beneficial interests in the o ` q Series 2002 B onds will be made in book -entry form. Purchasers of the Series 2002 Bonds ("Beneficial Owners") will notreceive physical $ delivery of Series 2002 Bonds. Accordingly, principal and interest on the Series 2002 Bonds will be paid by U.S. Bank National cr Association, St. Paul, Minnesota, as paying agent directly to DTC as the registered owner thereof. Disbursements ofsuch payments lathe ° u DTC Participants is the responsibility ofDTC and disbursements of such payments to the Beneficial Owners is the responsibility of Direct w H Participants and Ind irect Participants, as more fully described herein. Sce "DESCRiPTION OF THE SERIES 2002 BONDS - Book -Entry ° Only System" herein. ° m o o Certain of the Series 2002 Bonds are subject to optional redemption prior to maturity as set firth herein. a ° The Series 2002 Bonds are beingissued pursuant to Chapter 166, Florida Statutes, themunicipal charter of the City, and other ~.W applicable provisions oflaw, and,pursuantto City Resolutions No. 98-156, No. 99-178, No. 99-192 and No. R-2002-____ (collectively, the "Resolution"). The Series 2002 Bonds are being issued to finance aportion ofthe construction of certain publiccapital projects described G herein (the "Project"), and to pay certain costs of issuance of the Series 2002 Bonds includingthe municipal bond insurance and Reserve ° ro Policy premiums. 0 0 ° 2 The Series 2002 Bonds and the interest thereon are secured by and payable solely from Saks Tax Revenues as defined in the o A .!2 Resolution. The lien of the Series 200 2 Bond s on the Sales Tax Revenues is on a parity with the lien thereon of th a City's outstanding Sales it v Tax Revenue Bonds, Series 1999 currently outstanding in the aggregate principal amount of $7,865,000 (the "Parity Bonds"). Pursuant ou .0 to the Resolution, the City may in the future pledge to the Series 2002 Bonds and the Parity Bonds "Additional Pledged Revenues" d (collectively, with the Sales 'fax Revenues, the "Pledged Revenues"). See "SECURITY FOR THE SERIES 2002 BONDS" and "DEBT ' SERVICE REQUIREMENTS" herein. t ua The Series 2002 Bonds do not constitute general obligations of the City. The City is not obligated to pay the principal s d o of, redemption premium, if any, or interest on the 2002 Bands, except from the Pledged Revenues. Neither the full faith and credit u o d nor the taxing power of the City to levy any ad valorem real or tangible personal property taxes is pledged to the payment of the u .0 Series 2002 Bonds. " Payment of the principal of and interest on the Series 2002 Bonds, when due will be guaranteed by a municipal bond ,g E v insurance policy to be issued simultaneously with the delivery of the Series 2002 Bonds by Financial Guaranty Insurance o a Company. t a [INSURER'S LOGO] n a` u For discussion of the terms and provisionsof such policy, including the limitations thercot see "BOND INSURANCE" herein and Appendix eD hereto. c b c `0 This cover page contains certain information for quick reference only. it is not a summaryof the Series 2002 Bonds.Investors must read the 'a entire OffcialStatementto obtain information essential tothe making ofan informed investment decision, W ° u ,j~ MATURiTIES,AMOUN'IS, INTEREST RATES, AND PRICES OR YIELDS AND CUSIP NUMBERS c a S__—�--SERIALBONDS e a Price Intefes Price i o e Maturities interest or Maturities t or ° 0 Z (April l)" Amounts" Rates Yield CUSIP (April I ' Amounts' Retes Yield CUSIP c 3 a 2003 $390,000 2014 $ 680,000 b e c w 8 2004 455.000 2015 710.000 ] `v u 2005 470.000 2016 745,000 12 y 2006 485,000 2017 780.000 a e 2007 505.000 2018 820,000 a C '4 -5 2008 525,000 2019 865,000 2009 545,000 2020 910,000 a� ' a 1 c 2010 570,000 2021 953,000 2011 593,000 2022 1,005,000 a '0 2012 620,000 2013 645,000 The Series 2002 Bonds are offered when, as ad if issued and accepted by the Underwriter subject to the approval of legality by Bryant, Millerand Olive, P.A., Tampa, Florida, Bond ou nsel. Certain other legal matters will be passed on for the City by its counsel, Mitchell S. Kraft, Esquire, City Attorney and by A kerm an, Senterfitt & Eidson, P.A., Orlando, Florida, Disclosure Counsel. Public Financial Management, Inc„ Ft Myers, Florida is serm Wg as f hancial advisor to the City in connection with the issuance of the Series 2002 Bonds, The Series 2002 Bonds are expected to be ielivered through the facilities of DTC in New York, New Yorkon or about May 2002, liam R. Hough & Co. Dated .2002 *Preliminary, subject to change L-1 IsORa72121;9 CITY OF TAMARAC, FLORIDA OFFICIALS CITY COMMISSION Joe Schreiber - Mayor Edward C. Portner - Vice -Mayor Gertrude Mishkin Marc L, Sultanof Karen L. Roberts CITY MANAGER Jeffrey L. Miller CITY ATTORNEY Mitchell S. Kraft, Esq. ASSISTANT CITY MANAGER AND INTERIM DIRECTOR OF FINANCE Michael C. Cernech FINANCE AND POLICY QFFICER Leanne Williams, CPA CITY AUDITORS Rachlin Cohen & Holtz, LLP Fort Lauderdale, Florida BOND COUNSEL Bryant, Miller and Olive, P.A. Tampa, Florida FINANCIAL ADVISOR Public Financial Managemcnt, Inc. Fort Myers, Florida DIS LOSURE COUN EL Akerman, Senterfitt & Eidson, P.A. Orlando, Florida OR472121; 9 No dealer, broker, salesman or other person as been authorized by the City, the Insurer or the Underwriter to give any information or to mak a any repre sentation w th re spect to the S eries 2002 Bond s other than tho se contained in this Official Statement, and, if given or made, such of information or representati ons must not be relied upon as having been authorized by any of the foregoing. This Offic- l Statement does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the ries 2002 Bonds by any person in any jurisdiction in which it is unlawful for suchperson to make such offer, solicitati n orsale. The information setforth herein has been obtained from the City, OTC, the Insurer, and other sources which re believed to be reliable. The Underwriter has reviewed the infotmat n in this Official Statement in accordance with, and as a part of its responsibilities to investors under the federal se urities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee qie accuracy or completeness of such information. The information herein is subject to change without notice and neither the delivery hereof not any sale hereunder at any time implies that information herein is correct a#of anytime subsequent to its date. Any statements in this Official Statement involving estimates, assumptions and mat*rs of opinion, whether or not so expressly stated, ate intended as such and not as representations of fact, IN CONNECTION WITH THE OFFERIN OF THE SERIES 2002 BONDS, THE UNDERWRITER MAY OVER -ALLOT OR EFFECT TRANSACTIONS W ICII STABILIZE OR MAINTAIN THE MARKET PRICE OF THE SFRIES2002 BONDSAT A LEVEL ABOVE JHAT WHICH MIGHT OTHERWISE PREVAILIN THE OPEN MARKET. SUCH STABILIZATION, IF COMME CED, MAY BE DISCONTINUED AT ANY TIME. NO REGISTRATION STATEMENT RE TING TO THE SERIES 2002 BONDS HAS BEEN FILED WITH TILE SECURITIES AND EXCHANGE COMMISSION (THE "COMMISSION") OR WITH ANY STATE SECURITIES COMMISSION. IN MAKING ANY INVESTMENT DECISION, INVESTORS MUST RELY ON THEIR OWN EXAMINATIONS OF THE CITY *NO THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. THE SERIES 2002 BONDS HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE COMMISSION OR ANY STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY. THE FOREGOING AUTHORITIES HAVE NOT PASSED UPON THE ACCURACY OR ADEQUACY OF THIS OFFICIAL STATEMENT. ANY REPRESENTATION TO THE CONTRARY MAY BE A CRIMINAL OFFENSE. References herein to laws, rules, regulatior s, resolutions, agreements, reports and other documents do not purport to be comprehensive or definitive -All references to such documents are qualified in their entiretyby reference to the particular document, the full text ofwhich may contain qualifications of and exceptions to statements made herein. Where full texts have not been included as appendic to this Official Statement, they may be obtained from the City of Tamarac, Florida, City Hall, 7525 N.W . 88th Avenue Tamarac, Florida 33321, (954) 724-13 18, Attention: Finance and Policy Officer, upon prepayment of reproduction co+, postage and handling expenses. [REMAINDER OF PAG� INTENTIONALLY LEFT BLANK] OP47212119 0 TABLE OF CONTENTS SUMMARY STATEMENT................................................................... v TheCity............................................................................ v The Series 2002 Bonds................................................................ v Purpose of the Series 2002 Bonds ........................................................ v Security for the Series 2002 Bonds ....................................................... v Optional Redemption..................................................................vi Additional Parity Bonds................................................................vi Municipal Bond Insurance .......... .... ........ ........................................ vi Professionals........................................................................ vi Delivery of the Series 2002 Bonds ....................................................... vii Continuing Disclosure ................ . .... ...................... I .............. I..... vii Additional Information................................................................ vii Miscellaneous...................................................................... vii INTRODUCTION..................................................................I.I.I.... 1 PURPOSE OF THE SERIES 2002 BONDS ............................................ I .......... 2 THE PROJECT............................................................................. 2 DESCRIPTION OF THE SERIES 2002 BONDS ................................................... 2 GeneralDescription................................................................... 1 Book -Entry Only System ......................... ... ...I ....... I...................... 2 Redemption Provisions................................................................ 5 SECURITY FOR THE SERIES 2002 BONDS ................................................. I ... 5 General............................................................................. 5 Sales Tax Revenues................................................................... 6 ............................................................................ 7 Funds and Accounts................................................................... 8 ReservePolicy...................................................................... 10 Additional Parity Bonds....................... ..................................... 10 Subordinate Indebtedness............................................................. 11 Other Covcnants..................................................................... 11 Investments........................................................................ 11 BOND INSURANCE........................................................................ 12 DEBT SERVICE REQUIREMENTS........................................................... 13 ESTIMATED SOURCES AND USESOF FUNDS ................................................ 14 THECITY................................................................................ 14 BONDHOLDER RISKS..................................................................... 14 LITIGATION.............................................................................. 15 LEGALMATTERS......................................................................... 15 OR472121;9 in • TAX EXEMPTION ......................... General ........................... Tax Treatment of Original Issue Discount . Tax Treatment of Bond Premium ........ UNDERWRITING .......................... INVESTMENT POLICY ..................... ............................................. 16 .........................................1.... 16 ........................... 17 .......................................... 17 ...................................... 17 ................................................ 18 RATINGS................................ F............................................... 18 FINANCIAL STATEMENTS ................................................................ 19 CONTINUING DISCLOSURE ................ ...... .................... ...................... 19 DISCLOSURE REQUIRED BY FLORIDA BLUE SKY REGULATIONS .............................. 19 ENFORCEABILITY OF REMEDIES ........... :............................................... 19 FINANCIAL ADVISOR ..................... M............................................... i 20 CONTINGENTFEES....................................................................... 20 MISCELLANEOUS......................................................................... 20 CERTIFICATE AS TO OFFICIAL STATEMENT �............................................... 20 APPENDIX A City of Tamarac, Florida APPENDIX B Composite Resolution APPENDIX C General Purpose Financig Ended September 30, 20 APPENDIX D Specimen Municipal Boi APPENDIX E Form of Opinion of Boni APPENDIX F Form of Continuing Disc APPENDIX G Form of the Reserve Pol al Information. tatements and Independent Auditors'Report for the Fiscal Year Insurance Policy ure Certificate and Existing Reserve Policy OR472121;9 iv 0 6YUulul_\:41MhIRT4ds1uIWhQ This Summary Statement, being part of the Official Statement, is subject to the more complete information contained herein and should not be considered to be a complete statement of the facts material to making an investment decision. The offering by the City of Tamarac, Florida, of its $13,275,000* Sales Tax Revenue Bonds, Series 2002 (the "Series 2002 Bonds") to potential investors is made only by means of the entire Official Statement. No person is authorized to detach this Summary Statement from the Official Statement or otherwise use it without the entire Official Statement. Capitalized terms used but not defined in this Summary Statement shall have the same meaning as in the Resolution (as hereinafter defined), unless the context would clearly indicate otherwise. See "Composite Resolution" - Appendix B hereto. The City The City of Tamarac, Florida (the "City") located in Broward County, Florida, had an estimated 2001 population of S2,413. The City was incorporated in 1963 and operates under its own charter. The governing body of the City consists of a five member commission of which four members are elected by district, and a mayor is elected at large. The City provides a full range of municipal services, including police and fire protection, highways and streets, planning, zoning, parks, recreation, water, sewer, sanitation and general administrative services. The Series 2002 Bonds The City is issuing the Series 2002 Bonds only in the form of fully registered bonds in the denomination of $5,000 principal amount or any integral multiple thereof. The Series 2002 Bonds will bear interest at the fixed rates set forth on the cover page hereofpayable semi-annually on each April 1 and October 1, commencing October 1, 2002. The Series 2002 Bonds, when issued, will be registered in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York ("DTC") which will act as securities depository for the Series 2002 Bonds. Purchases of beneficial interests in the Series 2002 Bonds will be made in book -entry form. Purchasers of the Series 2002 Bonds ("Beneficial Owners") will not receive physical delivery of Series 2002 Bonds. Accordingly, principal and interest on the Series 2002 Bonds will be paid by U.S. Bank National Association, aspaying agent directly to DTC as the registered owner thereof. Disbursements of such payments to the DTC Participants is the respons ibility of DTC and disbursements of such payments to the Beneficial Owners is the responsibility of Direct Participants and Indirect Participants,as more fully described herein. See "DESCRIPTION OF THE SERIES 2002 BONDS - Book -Entry -Only System" herein. Certain of the Series 2002 Bonds are subject to optional redemption prior to maturity as set forth herein. See "DESCRIPTION OF THE SERIES 2002 BONDS - Redemption Provisions" herein. Purpose of the Series 2002 Bonds The Series 2002 Bonds are being issued pursuant to Chapter 166, Florida Statutes, the municipal charter of the City, and other applicable provisions of law, and City Resolutions No. 98-156, No. 99-178, No. 99-192 and No. R-2002- _ (collectively the "Resolution"). The Series 2002 Bonds are being issued to finance a portion of the construction of certain public capital projects described herein (the "Project") and to pay certain costs of issuance of the Series 2002 Bonds including the municipal bond insurance and Reserve Policy (hereinafter defined) premiums. Security for the Series 2002 Bonds The Series 2002 Bonds and the interest thereon are secured by and payable solely from the proceeds derived by the City from the local government half -cent sales tax levied and collected pursuant to Chapter 212, Part 1, Florida Statutes, and distributed to the City pursuant to Chapter 218, Part VI, Florida Statutes, as amended (the "Sales Tax Revenues"). The lien of the Series 2002 Bonds on the Sales Tax Revenues is on a parity with the lien thereon of the City's outstanding Sales Tax Revenue Bonds, Series 1999 (the "Parity Bonds") currently outstanding in the aggregate * Preliminary, subject to change OR472121;9 principal amount of $7,865,000. Pursuantto the Re and the Parity Bonds "Additional Pledged Revei Revenues"). Currently,the only Pledged Revenues 2002 BONDS" and "DEBT SERVICE REQUIRE: lution, the City may in thefuture pledgeto the Series2002 Bonds .s" (collectively, with the Sales Tax Revenues, the "Pledged e the Sales Tax Revenues. See "SECURITY FOR THE SERIES ENTS" herein. The Series 2002 Bond s do not c onstitute g nera 1 obligateo ns of the C ity. The C ity Is not obligated to pay the principalof, redemption premium,if any, on Iterest on the 2002 Bonds, exceptfrom the Pledged Revenues. Neither the full faith and credit nor the taxing po r of the City to levy any ad valorem real or tangible personal property taxes is pledged to the payment of the S ries 2002 Bonds. The City will, in connection with the issuan a of the Series 2002 Bonds, deposit to the Debt Service Reserve Account the Municipal Bond Debt Service Reserve F nd Policy (the "Reserve Policy") of Financial Guaranty Insurance Company ("Financial Guaranty"), in an amount equal together with the reserve policy of Financial Guaranty previously deposited to the Debt Service Reserve Account in 4nnection with the issuance of the Parity Bonds, to the Reserve Requirement for the Series 2002 Bonds and the Parilly Bonds. Amounts in the Debt Service Reserve Account shall be used only for the purpose of making payments into the Interest Account, Principal Account and Bond Redemption Account when the other moneys in the Revenue Account are insufficient therefor. The "Reserve Requirement" is the lesser of (i� the M aximum A nnual Deb t Service, (ii) one hundred twenty-five percent (125%) of Average AnnualDebtService,or (i+i)ten percent (10%) of the original principal amount of the B onds. See "SECURITY FOR THE 2002 BOND S - Reservq Account" and "SECURITY FOR TH E SERIES 2002 BONDS - Reserve Policy" herein. The City has covenanted in the Resolution, ai nong other matters, to take all actions necessary to remain eligible under applicable law to continue to receive Sales Tax Revenues and to diligently collect all Pledged Revenues and to take all steps, action and proceedings for the collectimi of such Pledged Revenues which shall become delinquent to the full extent permitted or authorized by applicable laws and regulations. See "SECURITY FOR THE SERIES 2002 BONDS - Other Covenants" herein. Optional Redemption The Series 2002 Bondsmaturing on or after April 1, ___are subjectto optional redemption on or after April 1, _—_ at the redemption prices described herein. See 'DESCRIPTION OF THE SERIES 2002 BONDS -Redemption Provisions" herein. I Additional Parity Bonds Upon compliance with certain requirement3lset forth in the Resolution, the City may issue Additional Parity Bonds secured on a parity with the Series 2002 Bons and the Parity Bonds. The Series 2002 Bonds, the Parity Bonds and any Additional Parity Bonds issued pursuant ;to the Resolution are referred to herein as the "Bonds." See "SECURITY FOR TILE SERIES 2002 BONDS - Additional Parity Bonds" herein. Municipal Bond Insurance Payment of the principal of and interest on tl�e Series 2002 Bonds, when due will be guaranteed by a municipal bond insurance policy to be issued simultaneously with the delivery of the Series 2002 Bonds by Financial Guaranty. See "BOND INSURANCE" herein and Appendix Dlhereto. Professio nals U.S. Bank National Association, St. Paul, Minnesota, will serve as Registrar and Paying Agent pursuant to the Resolution. OR472121;9 yr Bryant, Millerand Olive, P,A., Tampa, Florida, is serving as Bond Counsel. Mitchell S. Kraft, Esquire is the City Attorney, and Akerman, Senterfitt & Eidson, P.A., Orlando, Florida, is serving as Disclosure Counsel. Public Financial Management, Inc. is the City' financial advisor. Delivery of the Series 2002 Bonds It is anticipated that the Series 2002 Bonds in fully registered form will be available for delivery through the facilities of DTC on or about May ___, 2002. Continuing Disclosure The City has agreed and undertaken for the benefit of the Holders and beneficial owners of Series 2002 Bonds, to provide certain financial information and operating data relating to the City and the Series 2002 Bonds and notice of certain enumerated events pursuant to Rule 15c2-12 of the Securities and Exchange Commission ("SEC") under the Securities Exchange Act of 1934. See "CONTINUING DISCLOSURE" herein and Appendix F hereto. Additional Information This Official Statement speaks only as of its date and the information contained herein is subject to change. Descriptions of the Series 2002 Bonds, and other agreements and documents contained herein constitute summaries of certain provisions thereof and do not purport to be complete. Reference is made to the Resolution, and such other agreements and documents for a more complete description of such provisions. Investors should contactthe Finance and Policy Officer(954) 724-1318 at City Hall, 7525 N.W. 88th Avenue, Tamarac, Florida 33321, to obtain copies ofbasic documentation referred to herein or with questions concerning this Official Statement of the Series 2002 Bonds. Except to the extent otherwise indicated, information contained in this Official Statement was compiled by the City. Miscellaneous The references, excerpts and summaries of all documents referred to herein do not purport to be complete statements of the provisions of such documents, and reference is directed to all such documents for full and complete statements of all matters of fact relating to the Series 2002 Bonds, the security for the payment of the Series 2002 Bonds, and the rights and obligations of holders thereof. The information contained in the Official Statement involving matters of opinion or estimates, whether or not so expressly stated, are set forth as such and not as representations of fact, and no representation is made that any of the estimates will be realized. Neither this Official Statement nor any statement which may have been made verbally or in writing is to be construed as a contract with the holders of the Series 2002 Bonds. (END OF SUMMARY STATEMENT] OR472121;9 vii • OFFICI11kL STATEMENT CITY OFT MARAC, FLORIDA SALES TAX REVIINUE BONDS, SERIES 2002 UCTION The purpose of this Official Statement, inclu ing the cover p age, Summary Statement and all appendices, is to set forth certain information in connection with the sa bythe City of Tamarac, Florida (the City") of its $13,275,000'" aggregate principal amount of Sales Tax Revenue Bo ds, Series 2002 (the "Series 2002 Bonds"). The Series 2002 Bonds are issued under andlpursuant to Chapter 166 Florida Statutes, the municipal charter of the City and other applicable provisions of lavA, and Resolutions No. 98-156, No. 99-178, No. 99-192 and No. R-2002-__ (collectively, the "Resolution"). Oee Appendix B, "Composite Resolution". The Series 2002 Bonds and the interest therelon are secured by and payable solely from the proceeds derived by the City from the local government half -cent sales tax levied and collected pursuant to Chapter 212, Part I, Florida Statutes, and distributed to the City pursuant to Chatter 218, Part VI, Florida Statutes, as amended (the "Sales Tax Revenues"). The lien of the Series 2002 Bonds on tho Sales Tax Revenues is on a parity with the lien thereon of the City's outstanding Sales Tax Revenue Bonds, Series 1999 (the "Parity Bonds") currently outstanding in the aggregate principal amount of $7,865,000. Pursuant to the Resolution, the City may in the future pledge to the Series 2002 Bonds and the Parity Bonds "Additional Pledged Revenues" (collectively, with the Sales Tax Revenues, the "Pledged Revenues"). Currently, the onlyPlcdged Revenuesar� the Sales Tax Revenues. See "SECURITY FOR THE SERIES 2002 BONDS" and "DEBT SERVICE REQUIREMONTS" herein. The Series 2002 Bonds do not constitute goneral obligations of the City. The City is not obligated to pay the principal of, redemption premium, if any, or interest on the 2002 Bonds, except from the Pledged Revenues. Currently, the only Pledged Revenues are the SaleslTax Revenues. Neither the full faith and credit nor the taxing power of the City to levy any ad valorem real or t4ngible personal property taxes is pledged to the payment of the Series 2002 Bonds. The Series 2002 Bonds are issuable only in the form of fully registered bonds in denominations of $5,000 principal amount or any integral multiple thereof. Th4 Series 2002 Bonds, when issued, will be registered in the name of Cede & Co., as nominee for The Depository True t Company, New York, New York ("DTC") which will act as securities depository for the Series 2002 Bonds. Purebasesof beneficial interests in the Series 2002 Bonds wit lbe made in book -entry form. Purchasers of the Series 2002 Bonds ("Beneficial Owners") will not receive physical delivery of Series 2002 Bonds. Accordingly, principal and interest on the Series 2002 Bonds will be paid by U.S. Bank National Association, St. Paul, Minnesota, as payingagent direcoy to DTC as the registered owner thereof. Disbursements of such payments to the DTC Participants is the responsibility of DTC and disbursements of such payments to the Beneficial Owners is the responsibility of Direct Participants $nd Indirect Participants, as more fully described herein. See "DESCRIPTION OF THE SERIES 2002 BONDS - Book -Entry -Only System" herein. Certain of the Series 2002 Bonds are subjectito optional redemption prior to maturity as set forth herein. See "DESCRIPTION OF THE SERIES 2002 BONDS - gedemption Provisions" herein. This Official Statement speaks only as of its date and the information contained herein is subject to change. * Preliminary, subject to change OR472121;9 0 Capitalized terms used herein but not defined herein have the same meanings as when used in the Resolution unless the context clearly indicates otherwise. Complete descriptions of the terms and conditions of the Series 2002 Bonds are set forth in the Resolution, a composite of which is attached to this Official Statement as Appendix B. The description ofthe Series 2002 Bonds,the documents authorizing and securing the same, and the information from various reports and statements contained herein am not comprehensive or definitive. All references herein to such documents, reports and statements are qualified by the entire, actual contentof such documents, reports and statements. Copies of such documen ts, reports and statements referred to herein that are not included in their entirety in this Official Statement may be obtained, after payment of applicable copying and mailing costs, from the City of Tamarac, at City Hall, 7525 N.W. 88th Avenue, Tamarac, Florida 33321, Attention: Finance and Policy Officer, (954) 724-1318. PURPOSE OF THE SERIES 2002 BONDS The Series 2002 Bonds are being issued to finance the acquisition and construction of certain public capital projects described herein (the "Project") and to pay certain costs of issuance of the Series 2002 Bonds including the municipal bond insurance and Reserve Policy (hereinafter defined) premiums. THE PROJECT The Project consists of the acquisition and construction of certain capital projects within the City. More specifically the proceeds of the Series 2002 Bonds deposited in the Construction Fund will be expended primarily to construct • street improvements • site work and engineering • a fire station • a development services building • a public works storage building • parks and recreational facilities. • and to acquire land DESCRIPTION OF THE SERIES 2002 BONDS General Description The Series 2002 Bonds will be issued as fullyregistered bonds in the denomination of $5,000 each or integral multiples thereof and will be initially registered in the name of Cede & Co., as nominee of DTC, New York, New York, which will act as securities depository for the Series 2002 Bonds. Unless the book -entry system is discontinued as described herein, individual purchases of the Series 2002 Bonds will be made in book -entry form only, and the purchasers will not receive physical delivery of the Series 2002 Bonds or any certificate representing their beneficial ownership interests in the Series 2002 Bonds. See "Book -Entry Only System" below. Interest on the Series 2002 Bonds is payable on October 1, 2002 and on each April I and October 1 thereafter until maturity or redemption. Amounts due on the Series 2002 Bonds will be paid to Cede & Co., as nominee for DTC, as registered owner of the Series 2002 Bonds, to be subsequently disbursed to Direct Participants and Indirect Participants and thercafter to the Beneficial Owners of the Series 2002 Bonds. Book -Entry Only System The information set forth under this caption concerning DTC and DTC Is book -entry system has been obtained from sources the City believes to be reliable, but the City takes no responsibility for the accuracy thereof. OR472121;9 The Series 2002 Bonds will be issued as full registered bonds without coupons. DTC, New York, New York, will act as securities depository for the Series 2002 1 londs. The Series 2002 Bonds will be issued as fully registered securities registered in the name of Cede & Co. (DT( 6s partnership nominee). One fully registered Series 2002 Bond will be issued for each maturity of the Series 2002 H rids. Individual purchases of beneficial ownership interests will be made in book -entry form only, in the principal amo int of $5,000 or any integral multiple thereof. Beneficial owners of the Series 2002 Bonds will not receive physical de ivery of Series 2002 Bonds. DTC, the world's largest depository, is a limit Law, a "banking organization" within the meaning o System, a "clearing corporation" within the meaning agency" registered pursuant to the provisions of Secti provides asset servicing for overt million issues ofU. and money market investments from over 85 countrie also facilitates the post -trade settlement among Direct securities through electronic computerized book -entry eliminatesthe need for physical movement of securiti securities brokers and dealers, banks, trust companie a wholly -owned subsidiary of The Depository Trust a number of Direct Participants of DTC and Membe Securities Clearing Corporation, MSS Clearing Cor GSCC, MBS CC, and EMCC, also subsidiaries of E American Stock Exchange LLC, and the National As also available to others such as both U.S. and non-1 clearing corporations that clear through or maintain a indirectly ("Indirect Participants"), DTC has Standan Participants are on file with the Securities and Excha www.dtce.com. Purchases of Series 2002 Bonds under the h will receive a credit for the Series 2002 Bonds on D' each Series 2002 Bond ("Beneficial Owner") is in to Beneficial Owners will not receive written confirm expected to receive written confirmation providing holdings, from the Direct or Indirect Participant th Transfers of ownership interests in the Series 2002 Participants acting on behalf of Beneficial Owners. ownership interest in Series 2002 Bonds,exceptin th is discontinued. A purpose trustcompany organized underthe New York Banking the New York Banking Law, a member of the Federal Reserve of the New York Uniform Commercial Code, and a "clearing )n 17A of the Securities Exchange Act of 1934. DTC holds and . and non-U.S. equity issues, corporate and municipal debt issues that Participants ("Direct Participants') depositwidt DTC, DTC Participantsof sales and other securities transactions in deposited aansfers and pledg es between Direct P articipants' accounts. This certificates. Direct Participants includeboth U.S. and non-U.S. ,clearing corporations, and certain other organizations, DTC is c Clearing Corporation ("DTCC"). DTCC, in turn, is owned by s of the National Securities Clearing Corporation, Government ioration, and Emerging Markets Clearing Corporation, (NSCC, TCC), as well as by the New York Stock Exchange, Inc., the aciation of Securities Dealers, Inc. Access to the DTC system is .S. securities brokers and dealers, banks, trust companies, and ,ustodial relationship with a Direct Participant, either directly or & Poor's highest rating: AAA. The DTC Rules applicable to its me Commission. More information about DTC can be found at 'C system most be made by or through Direct Participants, which C's records. The ownership interest ofeach actual purchaser of t to be recorded on the Direct and Indirect Participant's records, ion from DTC of their transaction, but Beneficial Owners are etails of the transaction, as well as periodic statements of their )ugh which the Beneficial Owner entered into the transaction. 3onds are to be accomplished by entries made on the books of leneficial Owners will not receive certificates representing their event that use ofthe book -entry system for the Series 2002 Bonds To facilitate subsequent transfers, all Series 002 Bond s deposited by Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co. he deposit of Series 2002 Bonds with DTC and their registration in the name of Cede & Co. effect no change in bene ial ownership. DTC has no knowledge of the actual Beneficial Owners of the Series 2002 Bonds, DTC's records re et onlythe identityof the Direct Participants to whose accounts such Series 2002 Bonds are credited, which may o may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping acco int of their holdings on behalf of their customers. Conveyance of notices and other cornmuniclations by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory O� regulatory requirements as may be in effect from time to time. Beneficial Owners of Series 2002 Bonds may wish toltake certain steps to augment the transmissionto them ofnotices of significant events with respect to the Series 200� Bonds, such as redemptions, tenders, defaults, and proposed amendments to the security documents. For example] Beneficial Owners of Series 2002 Bonds may wish to ascertain that the nominee holding the Series 200 2 Bonds for their benefit has agreed to obtain and transmit notices to Beneficial OR411111-19 I� • Owners. In the alternative Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them. Redemption notices shall be sent to DTC. If less than all of the Series 2002 Bonds are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Series 2002 Bonds. Under its usual procedures, DTC will mail an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts the Series 2002 Bonds arc credited on the record date (identified in a listing attached to the Omnibus Proxy). Principal and interest payments on the Series 2002 Bonds will be made to Cede & Co. or such other nominee as maybe requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information from the City or the Paying Agent on the payable date in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accountsof customers in bearer form or registered in "street name," and will be the responsibility ofsuch Participant and not ofDTC, DTC's nominee, the Paying Agent, or the City, subject to any statutory or regulatory requirements as may be in effect from time totime. Payment of principal, and interest to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the City or the Paying Agent, disbursement of such payments to Direct Participants shall be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners shall be the responsibility of Direct and Indirect Participants. DTC may discontinue providing its services as depository with respect to the Series 2002 Bonds at any time by giving reasonable notice to City or paying agent. Under such circumstances, in the event that a successor depository is not obtained, Series 2002 Bonds certificates are required to be printed and delivered. The City may decide to discontinue use of the system of book -entry transfers through DTC (or a successor securities depository). In that event Series 2002 Bonds certificates will be printed and delivered. SO LONG AS CEDE & CO. ISTHE REGISTERED OWNER OF THE SERIES 2002 BONDS, ASNOMINEE OF DTC, REFERENCES HEREIN TO THE HOLDER OF THE SERIES 2002 BOND OR REGISTERED OWNERS OF THE SERIES 2002 BONDS SHALL MEAN DTC AND SHALLNOT MEAN THE BENEFICIAL OWNERS OF THE SERIES 2002 BONDS. The City can make no assurances that DTC will distribute payments of principal of, redemption price, if any, or interest on the Series 2002 Bonds to the Direct Participants, or that. Direct and Indirect Participants will distribute payments of principal of, redemption price, if any, or interest on the Series 2002 Bonds or redemption notices to the Beneficial Owners of such Series 2002 Bonds or that they will do so on a timely basis, or that DTC or any of its Participants will act in a manner described in this Official Statement. The City is not responsible or liable for the failure of DTC to make any payment to any Direct Participant or failure of any Direct or Indirect Participant to give any notice or make any payment to a Beneficial Owner in respect to the Series 2002 Bonds or any error or delay relating thereto. The rights ofholders of beneficial interests in the Series 2002 Bonds and the manner of transferring or pledging those interests is subject to applicable state law. Holders of beneficial interests in the Series 2002 Bonds may want to discuss the manner of transferring or pledging their interest in the Series 2002 Bonds with their legal advisors. In the event the book -entry system is terminated, the transfer and exchange of Series 2002 Bonds shall be accomplished as described in Appendix B "Composite Resolution." OR472121;9 4 • • Redemption Provisions Optional Redemption The Series 2002 Bonds maturing prior to Ap The Series 2002 Bonds maturing on April 1, the City, as a whole or in part on April 1, , or as the City shall designate and by lot within a maturit, the principal amountof the Series2002 Bonds to be re during the following periods: Redemption Period l (both dates inclusive Notice and Effect of Redemption it 1, shall not be subject to redemption prior to maturity. or thereafter may be redeemed prior to maturity at the option of xn any date thereafter, if in part, from such maturity or maturities at the fallowing redemption prices (expressed as a percentage of leemed) plus accrued interest to the redemption date, if redeemed Redemption Price At least thirty (30) days before the redemption date, a notice ofredemption, either in whole or in part, shall be mailed, first class mail, postage prepaid, to allregister,W owners of Series 2002 Bonds to be redeemed at their addresses as they appear on the registration books. Failure to tt+ail any redemption notice to any Series 2002 Bondholder or any depositories and wire services, or any defect in any notice so mailed, shall not affect the validity of the proceedings for the redemption of the Series 2002 Bonds of any otheii Holder of Series 2002 Bonds. Notice having been given in the manner provided in the Resolution, the Series 2002 Fonds or portions of Series 2002 Bonds so called for redemption shall, on the redemption date designated in such notice become and be due and payable atthe redemption price provided for redemption for such Series 2002 Bonds or portio s of Series 2002 Bonds on such date. On the date so designated for redemption, interest on the Series 2002 Bonds or*rtionsof Series 2002 Bonds so called for redemption shall cease to accrue, such Series 2002 Bonds and portions of Series 2002 Bonds shall cease to be entitled to any lien, benefit or security under the Resolution and shall be deemed pa d under the Resolution, and the registered owners of such Series 2002 Bonds or portions of Series 2002 Bonds shall ve no rights except to receive payment of the redemption price. SECURITY FORITHE SERIES 2002 BONDS General The Series 2002 Bonds are limited obligations of the City payable solely from and secured by a pledge of the proceeds derived by the City from the local governmc*t half -cent sales tax levied and collected pursuant to Chapter 212, Part I, Florida Statutes, and distributed to the City pursuant to Chapter 218, Part V1, Florida Statutes, as amended (the "Sales Tax Revenues" or "Pledged Revenues"). The Ilien of the Series 2002 Bonds on the Sales Tax Revenues is on a parity with the lien thereon of the Parity Bonds. Pursu)int to the Resolution, the Citycovenants that if, in any Fiscal Year, Sales Tax Revenues are less than one hundred twenty4ive percent (125%) ofthe Annual Debt Service Requirement for all Bonds outstanding, it shall pledge, to the extent Iogally available, Additional Pledged Revenues (collectively with the Sales Tax Revenues, the "Pledged Revenues") so fat the Pledged Revenues shall be adequate in the next succeeding Fiscal Year to pay at least one hundred twenty-five Percent (125%) of the Annual Debt Service Requirement for all Bonds outstanding,and that such Pledged Revenues s allbe sufficient to make allof the otherpayments provided in the Resolution as the same become du in such Fiscal YOr. No assurance can be given that, should such an event occur, the City will be able to pledge legally available Additional Pledged Revenues in amounts sufficient to complywith such covenant. Additional Pledged Revenues are defined �s any revenues, other than those revenues previously pledged pursuant to the Resolution, that may hereafter be pledged by the City for the payment of Bonds by subsequent proceedings of the City, provided, however, that the City shall have received an opinion of Bond Counsel or the City OR472121;9 Attorney to the effect that such sourceof revenue is legally available to be pledged as security for the Bonds and the City has full authority to pledge said revenues. Currently there are no Additional Pledged Revenues. The City further covenants in the Resolution that it has power to irrevocably pledge said Pledged Revenues to the payment of principal of and interest on the Bonds issued pursuant to the Resolution and that the pledge of said Pledged Revenues in the manner provided in the Resolution shall not be subject to repeal, modification or impairment by any subsequent ordinance or other proceedings ofthe governing body ofthe City, exceptas provided in the Resolution or by any subsequent act or acts of the Legislature of Florida. The Series 2002 Bonds do not constitute general obligations of the City. The City is not obligated to pay the principal of, redemption premium, if any, or interest on the 2002 Bonds, except from the Pledged Revenues. Currently, the only Pledged Reven ties are the Sales Tax Revenues. Neither the fu Il faith and credit nor thetaxing power of the City to levy any ad valorem real or tangible personal property taxes is pledged to the payment of the Series 2002 Bonds. Sales Tax Revenues Pursuant to Chapter 212, Florida Statutes, the State of Florida levies and collects a salestax ofsix percent(6%) on, among other things, the sales price of each item or article of tangible personal property sold at retail in the State of Florida, subject to certain exceptions and dealer allowances as setforth therein. Chapter 212 provides that 9.653% of the proceeds remitted to the State of Florida by a sales tax dealer located within a participating county, after certain required deposits to the State's General Revenue Fund and Solid Waste Management Trust Fund, is required to be deposited in the Local Government Half -cent Sales Tax Clearing Trust Fund in the State Treasury (the "Trust Fund") and earmarked for distribution to the governing body of such county and of each municipality within that county pursuant to a distribution formula. Such funds have been designated by law as the "Local Government Half -Cent Sales Tax" (the "Half -Cent Sales Tax"). The Half -Cent Sales Taxis distributed from the Trust Fund on a monthly basis to participating units of local government in accordance with Chapter 2 18, Part VI, Florida Statutes, Chapter 218, Part VI, Florida Statutes, permits the local governments to pledge their shares of the Half -Cent Sales Tax for the payment of principal and interest on indebtedness incurred to finance any capital project. The Half -Cent Sales Tax collected within a county is distributed to the cities therein in accordance with the following formula: City's Share= city population total county 2/3 incorporated area population + population The City has complied with all of the requirements set forth in Chapter 218, Part VI which are necessary in order for the City to receive its portion of funds from the Trust Fund during the 2001-2002 fiscalyear and has covenanted in the Resolution to take all actions necessary to remain eligible under applicable law to continue to receive Sales Tax Revenues. To be eligible to participate in distributions from the Trust Fund, the City must comply with certain requirements set forth in Section 218.23, Florida Statutes, as required by Section 219,63 Florida Statutes, Otherwise, the City will not be entitled to any Trust Fund distribution for twelve (12) months following a "determination of noncompliance" by the State Department of Revenue. These requirements include requirements concerning the reporting and auditing of its finances, the levying of ad valorem taxes or receipt of other revenue sources, certifying certain requirements pertaining to employment and compensation of law enforcement officers, the employment of firefighters, the auditing of certain dependent special districts of the City, and the method of fixing millagc rates for the levying of ad valorem taxes. Although Chapter 218, Part Vl, does not impose any limitation on the number of years during which the City can receive distributions of the Half -Cent Sales Tax from the Trust Fund, there maybe amendments to Chapter 218, Part VI, in subsequent years imposing additional requirements of eligibility for cities and counties participating in the Trust Fund. See "BONDHOLDER RISKS" herein. OR472121;9 0 The following table sets forth the allocation for the fiscal year ending June 30, 2001, Half-CentSales Tax among the cities within Broward County Broward County 14If-Cent Sales Tax Allocation (State of Florida Fis al Year ending June 30, 2001) ` Percentage Name Amount Share Broward County $� 61,019,365.33 42.76% City of Dania Beach 1,095,483.73 0.76 City of Deerfield Beach 3,519,122.12 2.46 City of Fort Lauderdale 8,824,687.40 6.18 City of Hallandale 1,867,538.95 1.30 City of Hollywood 7,567,134.80 5.30 City of Oakland Park 1,673,338.31 1.17 City of Cooper City 1,702,741.77 1.19 City of Pompano Beach 4,402,741,11 3.08 Town o f Davie 4,002,249.36 2.80 Town of Hillsboro Beach 104,095.19 0.07 Town of Lauderdale -by -the- 225,143,83 0.15 Sea Village of Lazy Lake 2,074,78 0.001 City of Lighthouse Point 631,029.43 0.44 City of Margate 3,007,066,57 2.10 City of Miramar 3,235,647.88 2.26 City of Pembroke Pines 7,094,558.38 4.97 City of Plantation $4,768,078.83 3.34 City of Wilton Manors 699,200.01 0.49 City of Lauderhill 2,996,514.35 2.09 City of Lauderdale Lakes 1,520,946.13 1.15 City of Sunrise 4,648,275.91 3.25 City of Sea Ranch Lakes 36,516.77 0.02 City of Coral Springs 6,622,932.28 4.64 City of Tamarac 3,107,010.79 2.17 Town of Pembroke Park 283,592.66 0.19 City of Coconut Creek 2,344,737.23 1.64 City of North Lauderdale 1,772,631.83 1.24 City of Parkland 783,614.84 0.54 The City of Weston 2,520,678.78 1.76 City of South West Ranches 483,957_.68 0.33 TOTAL $I142,562,707.03 100% • The distribution factor for the City for the State fiscalyear ending June 30, 2002 is 2.114783%. Source: Florida Department of Revenue. * May not add 100% due to rounding. [REMAINDER OF PAGO INTENTIONALLY LEFT BLANK] OR472121;9 7 HISTORICAL STATEMENT OF SALES TAX REVENUES AND OF PRO -FORMA DEBT SERVICE COVERAGE Fiscal Years Ended September 30 1995 1996 1997 1998 1999 2000 2001 Sales Tax $2,280,414 $2,392,542 $2,493,915 $2,636,045 $2,766,192 $2,966,244 $3,131,981 Revenues:0) Maximum Annual Debt Service on Series 2002 Bonds and Parity Bonds" 3,760,879 $1,760,879 $1,760,879 $1,760,879 $1,760,879 3,760,879 $1,760,879 Debt Service Coverage 1.29 1.36 1.41 1.49 1.57 1.68 1.79 Maximum Annual Debt Services on the Series 2002 Bonds has been estimated by the City's financial advisor based on an assumption of an all inclusive true interest costof W_%, an assumption of substantially level debt service, and a final maturity date ofApril 1, 2022. (t) Source: City of Tamarac Comprehensive Annual Financial Reports and City Finance Department, Funds and Accounts The Resolution establishes the "Pledged Revenue Account" and the "Pledged Revenue Sinking Fund Account" and four (4) separate accounts in the Pledged Revenue Sinking Fund Account known as "Interest Account"; the "Principal Account"; the "Bond Redemption Account" and the "Debt Service Reserve Account". The Resolution provides that all Pledged Revenues shall be deposited into the Pledged Revenue Account. The monies in the Pledged Revenue Account are to be applied monthly as follows: (a) Pledged Revenues shall first beused, to the full extent necessary, for deposit into the Interest Account in the Sinking Fund, on the twenty-fifth (25`h) day of each month in each year, such sums as shall be sufficientto pay one -sixth of the interestbecoming due on the Bonds on the next semi-annual InterestPayment Date, provided, however, that such monthly deposits for interest shall not be required to be made into the Interest Account to the extent that money on deposit therein is sufficient for such purpose. (b) (1) Pledged Revenues shall next be used, to the full extent necessary for deposit in the Principal Account on the twenty-fifth (25th) day of each month in each year, one -twelfth (1/12th) of the principal amount of the Serial Bonds which will mature and become due on such annual maturity dates; provided, however, that such monthly deposits for principal shall not be required to be made into the Principal Account to the extent that money on deposit therein is sufficient for such purpose. (2) Pledged Revenues shall next be used, to the full extent necessary, for deposit into the Bond Redemption Account on thetwenty-fifth (25th) day ofeach month in each year, one -twelfth (1/12th) of the principal amount of the installmentcoming due onthe next sinking fund paymentdate, beginning at least one year prior to the first such sinking fund paymentdate, in such amount and in each year as may be required for the payment of the principal amount of Term Bonds payable from the Bond Redemption Account, OR472121;9 The moneys in the Bond Redemption Accoui t shall be used solely for the purchase or redemption of the Term Bonds payable therefrom. The City mayat any time pu rchase Term Bonds at prices not greater than the then redemption price of said Term Bonds. If, by the application of in )neys in the Bond Redemption Account, the City shall purchase or call for redemption in any year Term Bonds in exc Iss of the installment requirement for such year, such excess of Term Bonds so purchased or redeemed shall be credit d in such manner and at such times as the Director ofFinance of the City shall determine over the remaining installmeit payment dates. No distinction or preference shallexist in theise of the moneys on deposit in the Revenue Account for payment into the Interest Account, the Principal Accountand th4 Bond Redemption Account, such accounts being on a paritywith each other as to payment from the Revenue Account. (c) The Resolution creates a ebt Service Reserve Account and provides that there shall be on deposit therein an amount equal to the Reservio Requirement. The Reserve Requirement is defined as the lesser of (i) Maximum Annual Debt Service, or (ii)J0% of the original principal amount of the Bonds, or (iii) 125% of Average Annual Debt Service. In connection with the issuance of the Parity Bonds, the City deposited to the Debt Service Reserve Account a municipal bond debt service reserve bond policy (the "Existing Reserve Policy")of Financial Guaranty Insurance Company ("Financial Guaranty") in an amount equal to the Reserve Requirement for the Parity Bonds. In conn ction with the issuance of the Series 2002 Bonds, the City will purchase from Financial Guaranty for depost to the Debt Service Reserve Account the Reserve Policy in an amount equal to the difference between the IReserve Requirement for the Parity Bonds and the Series 2002 Bonds, less the amount of the Existing Reserve Policy. See "Reserve Policy" below. The form of the Reserve Policy and the Existing Reserve Policy are iattached as Appendix G hereto. The maximum amount of the Existing Reserve Policy and the Reserve Pol cy will be equal to the Reserve Requirement for the Parity Bonds and the Series 2002 Bonds. Amounts in the ebt Service Reserve Account shall be used only for the purpose of making payments into the Interest Acco t, Principal Account and Bond Redemption Account when the moneys in the Revenue Account are insuffie ent therefor- (d) Pledged Revenues shall ext be used for the payment of any subordinated obligations hereafterissued bythe City in accordance wi -le"the Resolution, which subordinated obligations shall have such lien on the Pledged Revenues junior, subordi ate and inferior to the lien thereon of Bonds and as the City shall determine in the proceedings authorizing th issuance of such subordinated obligations. (e) After the twenty-fifth (25k) day of each month, any moneys remaining in the Revenue Account, after all required current payme s into the Interest Account, the Principal Account, the Bond Redemption Account, and the Debt Service eservc Account including any deficiencies for prior payments, have been made in full, as provided in t Resolution, shall be withdrawn from the Revenue Account, transferred to general fund of the City and .used by the City for any lawful purpose, but no moneys in the Revenue Account shall ever be used for an such purpose until all such required current payments into the Interest Account, the Principal Account, the Fond Redemption Account, and the D cbt Service Reserve A ccount, including any deficiencies for prior required payments, have been made in full, and the City shall have complied fully with all the covenants and provisions df the Resolution. (f) If on any payment date th� Pledged Revenues are insufficient to place the required amount in any of the funds or accounts or for any of the poses provided above, the deficiency shall be made up on the subsequent payment dates, i (g) All moneys levied and collected by the City as Pledged Revenues shall be deposited into the Revenue Account within twenty-four (24) hpurs after the receipt thereof to the extent practicable. i For additional information concerning the application of the Pledged Revenues, see Appendix B hereto. 0 OR472121;9 Reserve Policy Concurrently with the issuance of the Series 2002 Bonds, Financial Guaranty will issue its Municipal Bond Debt Service Reserve Fund Policy (the "Reserve Policy"). The Reserve Policy and the Existing Reserve Policy unconditionally guarantee the payment ofthat portion of the principal of and interest on the Series 2002 Bonds and the Parity Bonds which has become due for payment, but shall be unpaid by reason of nonpayment by the City, provided that the aggregate amount paid under the Reserve Policy and the Existing Reserve Policy may not exceed the maximum amount set forth in the Re serve Po licy and the Existing Resery a Policy, resp ectively, which m aximum am ount repre sents the Reserve Requirement on the Series 2002 Bonds and the Parity Bonds. Financial Guaranty will make such paym ents to the paying agent (the "Paying Agent") on the later of the date on which such principal and interest is due or on the business day next following the day on which Financial Guaranty shall have received telephonic or telegraphic notice subsequently confirmed in writing or written notice by registered or certified mail from the Paying Agent of the nonpayment of such amount by the City, The term "nonpayment" includes any payment of principal or interest made to an owner which has been recovered from such owner pursuant to the United States Bankruptcy Code by a trustee in bankruptcy in accordance with a final nonappealable order of a court having competent jurisdiction. The Reserve Policy is non -cancellable and the premium will be fullypaid at the time of delivery of the Series 2002 Bonds. The Reserve Policy and the Existing Reserve Policy cover failure to payprincipal of the Series2002 Bonds and on the Parity Bonds on their respective stated maturity dates,or dates on which the same shall have been called for mandatory sinking fund redemption, and not on any other date on which the Series 2002 Bonds and the Parity Bonds may have been accelerated, and covers the failure to pay an installment of interest on the stated date for its payment. The Reserve Policy shall terminate on the earlier of the scheduled final maturity date of the Series 2002 Bonds or the date on which no Series 2002 Bonds, Parity Bonds or Additional Bonds secured thereby are outstanding under the Resolution. The Existing Reserve Policy terminates on April 1, 2019 and has been issued in the maximum amount of $698,062.50. Genera Ily, in connection with its issuance of a Reserve P olicy, Financial Guaranty requires, amo ng other things, (i) that, so long as it has not failed to comply with its payment obligations under the Reserve Policy, it be granted the power to exercise any remedies available at law or under the authorizing document other than (a) acceleration of bonds or (b) remedies which would adversely affect holders in the event that the City fails to reimburse Financial Guaranty for any draws on the Reserve Policy; and (ii) that any amendment or supplement to or other modification of the principal legal documents be subject to Financial Guaranty's consent. The spec ific rights, if any, granted to Financial Guaranty in connection with its issuance of the Reserve Policy are set forth in the description of the principal legal documents appearing elsewhere in this Official Statement including Appendix B hereto. Reference should be made aswell to such description for a discussion of the circumstances, if any, under which the City is required to provide additional or substitute credit enhancement, and related matters. For information regarding Financial Guaranty, see 'BOND INSURANCE" herein. The Reserve Policy is not covered by the P roperty/Casualty Insurance Security Fund specified in Article 76 of the New York Insurance Law or by the Florida Insurance Guaranty Association (Florida Insurance Code §§ 631.50 et seq.). Additional Parity Bonds No Additional Parity Bonds payable one parity with the Series 2002 Bonds and the Parity Bonds shall be issued unless, among other conditions, the following are complied with: The amount of the Pledged Revenues during the immediate preceding Fiscal Year or any twelve (12) consecutive months selected by the City of the twenty-four (24) months immediately preceding the issuance of said Additional Parity Bonds, adjusted as provided in the Resolution, as certified by the City's Director of Finance, will be equal to one hundred twenty-five percent (125%) of the Maximum Annual Debt Service on (1) the Bonds originally issued pursuant to the Resolution then Outstanding, (2) any Additional Parity Bonds theretofore issued and then Outstanding, and (3) the Additional Parity Bonds thenproposed to be issued. Forpurposes ofsuch test, the interest rate OR472121;9 10 on Variable Rate Bonds shall be assumed to be the Variable Rate B onds. imum rate provided therefor in the proceedings authorizing such If the City, prior to the issuance of the prop ed Additional Parity Bonds, shall have increased any rates, fees or charges which constitute a portion of the Pledged venues, in connection with the issuance of any Additional Parity Bonds the Pledged Revenues for the twelve (12) ci nsecutive months immediately preceding the issuance of said Additional Parity Bonds shall be adjusted to show the Iledged Revenues which would have been derived in such twelve (12) consecutive months as if such increased Pledgi d Revenues had been in effect during all of such twelve (12) consecutive months. j The term "Additional Parity Bonds" as usell in the Resolution shall not be deemed to include bonds, notes, certificates or other obligations subsequently issued t*der the terms of the Resolution, the lien ofwhich on the Pledged Revenues is subject to the prior and superior lien of t �any Pledged Revenues to Bonds issued pursuant to the Resolution. For additional information concerning the issuance o Additional Parity Bonds, see Appendix B hereto. Subordinate Indebtedness The City may issue, in addition to the Bond authorized by the Resolution or Additional Parity Bonds, other obligations secured by the Pledged Revenues, provided such obligations contain an express statement that such obligations are junior, inferior and subordinate in all r�spects to the Bonds issued pursuantto the Resolutionas to alien on, and source and security for payment from the Pledged Revenues, and in all other respects. Other Covenants Pursuant to the Resolution, the City has additionally covenanted to take all actions necessary to remain eligible under applicable law to continue to receive Sales Tax kevenu es and to diligently collect all Pledged Revenues, and take all steps, action and proceedings for the collection of�uch Pledged Revenues which shall become delinquent to the full extent permitted or authorized by applicable laws an 1 regulations. Investments The Interest Account, Principal Account, Bond Redemption Account, Debt Service Reserve Account, Construction Fund, Revenue Account and all other tpecial funds created and established by the Resolution, but not including the Rebate Account, shall constitute trust f nds and shall be invested at the direction of the City as provided in the Resolution. Moneys on deposit in the Revenue Fund, )nterest Account, Principal Account and the Bond Redemption Account may be invested in Permitted Investments oaturing not later than the dates on which such moneys will be needed for the purposes of such fund or account. Any moneys on deposit in the Debt ServicelReserve Account may be invested (i) in direct obligations of the United Statesof America, or (ii) in obligations fully guaranteed by the United States ofAmerica, maturing not laterthan the dates on which such moneys will be needed for tNe purposes of such fund or account. All income and earnings received from the investment and reinvestment of moneys on deposit in the Interest Account, PrincipalAccount, and Bond RedemptionA0ount shall be transferred on the next busine ss day following their receipt to the Revenue Account and used in the same Imanner and order of priority as other moneys on deposit therein. Moneys on deposit in the Construction Fund may be invested and reinvested to the fullest extent practicable in Permitted Investments, maturing not later than sych date or dates on which such moneys will be needed for the purposes of the Construction Fund. The earnings andj investment income derived from the moneys and investments on deposit in the Construction Fund shall be deposited aid maintained in the Construction Fund and used for the purposes thereof. 0 OR411121:9 11 For the purpose of investing or reinvesting, the City may commingle moneys in the funds and accounts created and established under the Resolution in order to achieve greater investment income; provided that the City shall separately account for the amounts so commingled. The amounts required to be accounted for in each of the funds and accounts other than the Rebate Fund may be deposited in a single bank account provided that adequate accounting procedures are maintained to reflect and control the restricted allocation of the amounts on deposit therein for the various purposes of such funds and accounts. BOND INSURANCE Concurrently with the issuance of the Series 2002 Bonds, Financial Guaranty Insurance Company ("Financial Guaranty") will issue its Municipal Bond New Issue Insurance Policy for the Series 2002 Bonds (the "Policy"). The Policy unconditionally guarantees the payment of that portion of the principal of and interest on the Series 2002 Bonds which has become due for payment, butshallbe unpaid byreason ofnonpaymentby the issuer ofthe Series 2002 Bonds (the "Issuer"). Financial Guaranty will make such payments to State Street Bank and Trust Company, N.A., or its successor as its agent (the "Fiscal Agent") on the later of the date on which such principal or interest is due or on the business day next following the day on which Financial Guaranty shall have received telephonic or telegraphic notice, subseque ntly confirmed in writing, or written notice by registered or certified mail, from an owner ofSeries 2002 Bonds or the Paying Agent of the nonpayment of such amount by the Issuer. The Fiscal Agent will disburse such amount due on any Series 2002 B and to its owner upon receipt by the Fiscal Agent of evidence satisfactory to the Fiscal Agent of the owner's right to receive payment of the principal or interest due for payment and evidence, including any appropriate instruments of assignment, that all of such owner's rights to payment of such principal or interest shall be vested in Financial Guaranty. The term "nonpayment" in respect of a Series 2002 Bond includes any payment of principal or interest made to an owner of a Series 2002 Bond which has been recovered from such owner pursuant to the United States Bankruptcy Code by a trustee in bankruptcy in accordance with a final, nonappealable order of a court having competent jurisdiction. The Policy is non -cancellable and the premium will be fully paid at the time of delivery of the Series 2002 Bonds, The Policy covers failure to pay principal of the Series 2002 Bonds on their respective stated maturity dates or dates on which the same shall have been duly called for mandatory sinking fund redemption, and not on any other date on which the Series 2002 Bonds may have been otherwise called for redemption, accelerated or advanced in maturity, and covers the failure to pay an installment of interest on the stated date for its payment. Generally, in connection with its insurance of an issue of municipal securities, Financial Guaranty requires, among other things, (i) that it be granted the power to exercise anyrights granted to the holders of such securities upon the occurrence of an event of default, without the consent of such holders, and that such holders may not exercise such rights without Financial Guaranty's consent, in each case so long as Financial Guaranty has not failed to comply with its payment obligations under its insurance policy; and (ii) that any amendment or supplement to or other modification of the principal legal documents to subject to Financial Guaranty's consent. The specific rights, if any, granted to Financial Guaranty in connection with its insurance of the Series 2002 Bonds are set forth in the description of the principal legal documentsappearing elsewhere in this Official Statement including Appendix B hereto. Reference should be made as well to such description fora discussion of the circumstances, if any, under which the Issuer is required to provide additional or substitute credit enhancement, and related matters. This Official Statement containsa section regarding the ratings assigned to the Series 2002 Bonds and reference should be made to such section for a discussion of such ratings and the basis for their assignment to the Series 2002 Bonds. The Policy is not covered by the Property/Casualty Insurance Security Fund specified in Article 76 of the New York Insurance Law or by the Florida Insurance Guaranty Association (Florida Insurance Code, §§ 631.50 et seq.). OR472121;9 12 • Financial Guaranty is awholly-ownedsubsi iary ofFGIC Cotporation(the "Corporation") a Delaware holding company. The Corporation is a subsidiary of Gen iral Electric Capital Corporation ("GE Capital'). Neither the Corporationnor GE Capital is obligated to pay the det Is of orthe claims against Financial Guaranty, Financial Guaranty is a monoline financial guaranty insurer domiciled int ie State ofNew York and subject to regulation by the State of New York Insurance Department. As of December 31,,2001, the total capital and surplus of Financial Guaranty was approximately $1.002 billion. Financial Guarantypre ares financial statements on the basis ofboth statutory accounting principles and generally accepted accounting principl s. Copies of such financial statements may be obtained in writing to Financial Guaranty at 125 Park Avenue, New Y k, New York 10017, Attention: Communications Department (telephone number: 212-312-3000) or to the New Yor� State Insurance Department at 25 Beaver Street, New York, New York 10004-231 9, Attention: Financial Condition Property/Casualty Bureau (telephone number: 212-480-5187). DEBT S)E;RVKCE REQUIREMENTS The following table shows the scheduled anitual principal and interest requirements for the Series 2002 Bonds, total annual debt service on the Series 2002 Bonds, total debt service for the Parity Bonds and combined debt service for all such Bonds. Total Series Series 2002 Bonds 2002 Bonds and Year Ending Parity Bonds Parity Bonds (April I Principal Interest Total Debt, Service Debt Service Debt Service 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Total 0 011472121;9 13 $ 694,837.50 696,922.50 698,062.50 693,227,50 697,607.50 695,732.50 697,792.50 693,522.50 693,335.00 696,752.50 693,722.50 694,222.50 693,472.50 695,932.50 696,862.50 696,112.50 693,825.00 $11 821942.50 ESTIMATED SOURCES AND USES OF FUNDS Sources of Funds: Principal Amount of Series 2002 Bonds Less/Plus Original Issue Discount/Premium Total Estimated Sources of Funds Uses of Funds: Deposit to Construction Fund for Project Costs of Issuance(l) Total Estimated Uses of Funds S 0) Includes costs of issuance including underwriter's discount, legal fees and expenses, and other fees and expenses including the municipal bond insurance and Reserve Policy premiums associated with the issuance of the Series 2002 Bonds. THE CITY The City of Tamarac, Florida (the "City") located in Broward County, Florida, had an estimated 2001 population of 52,413. The City was incorporated in 1963 and operates under its own charter. The governing body of the City consists of a five member commission of which four members are elected by district and a mayor is elected at large, The City provides a full range of municipal services, including police and fire protection, highways and streets, planning, zoning, parks, recreation, water, sewer, sanitation and general administrative services. For additional information concerning the City see Appendices A and C hereto. BONDHOLDER RISKS Any purchaserof the Series 2002 Bonds must make an independent evaluation of the risks of purchasing Series 2002 Bonds and an independent decision as to the creditworthiness of the City. In an effort to assistpotential purchasers in their evaluation of the Series 2002 Bonds, the following represents a summary of certain of the risks associated with the Series 2002 Bonds. This section should not be considered all-inclusive and any risk not listed should not be presumed to be immaterial, The amount of Half -Cent Sales Tax Revenues received by the City is directly related to the volume of transactions in Broward County subject to the state sales tax, Prior to September 11, 2001, the United States, Broward County and the City were experiencing an economic slowdown. As a result of the terrorist attackson that date,various segments of the economyof the United States and the region, including Broward County, have been disrupted, including and in particular the tourism industry. The short and long term effects of these conditions and subsequent events could have a material effect on the Sales Tax Revenues received by the City, which could vary significantly from the historical receipts reflected above. As a result of the events which occurred on September 11, 2001, the Florida Department of Revenue has estimated that for the current fiscal year sales tax receipts in Broward County will be 4.8% less than the original estimate. At this time, the City has not amended its budget, reduced staff or taken any other action directly attributable to such department of revenue revised estimates. The full effect of a reduction in sales tax receipts below budgeted amounts cannot be predicted with any accuracy. OR472121;9 14 The amount of Sales Tax Revenues distrtb ed to the City is also dependent of the ratio of the population of the City to the population of Broward County and th population of other incorporated areas in Broward County. See "SECURITY FOR THE SERIES 2002 BONDS - ales Tax Revenues" herein. More rapid population growth in unincorporated Broward County or in the other into rated areas of B toward C ounty as com pared to p opulation g rowth within the City could have an adverse effect on the a ount of Sales Tax Revenues distributed to the City. The amount of Sales Tax Revenues distrib ed to the City can also be affected by changes in slate law to the rate of the state sales tax, changes to the scope of tax le sales, changes to the amountof Sales Tax Revenues deposited in the Trust Fund, or to changes in the formula for distribution of the Sales Tax Revenues. The Florida Legislature adopted a resolution in its 2002 regular session agree ng to submit to the electors of the State an amendment to Article VII, Section 3 of the State Constitution, creating a jo nt legislative committee to conduct a review of exemptions from the tax on sales, use, and other transactions imposed ty law and exclusions of services from such taxation. The City is unable to predict the IikeIiihood that such proposal wi l become law or the effect any such change in law would have on the amount of Sales Tax Revenues available to the Ciity, Pursuant to federal law retail sales via the Internet are exempt from sales tax until November 1, 2003. A continuing increase in retail sales via electronic co Imercc could adversely affect the amount of Sales Tax Revenues available to the City. LITIGATION i There is not now pending any litigation res raining or enjoining the issuance or delivery of the Series 2002 Bonds or questioning or affecting the validity of the Series 2002 Bonds or the proceedings and authority under which they are to be issued. Neither the creation, organi ation or existence of the City, nor the title of the present City Commission members or other officials of the City to their respective offices is being contested. There is no litigation pending which in any manner questions the right of the City to issue the Series 2002 Bonds in accordance with the provisions of the Resolution and the laws of the Stall: of Florida or to receive and pledge the Sales Tax Revenues. The City experiences routine litigation and claims incidental to the conduct of its affairs, The City carries substantial insurance for most of these exposures, ind any pending claims are defended by and, if necessary, are anticipated to be paid by the insurance carriers less the applicable insurance deductible amounts. LE AL MATTERS Certain legal matters incident to the validit of the Series 2002 Bonds and the issuance thereof by the City are subject to the approval of Bryant, Miller and Olive, P A., Tampa, Florida, Bond Counsel, whose approving opinion will be available at the time of delivery of the Series 2004 Bonds. Certain legal matters will be passed upon for the City by Mitchell S. Kraft, Esquire, City Attorney, and by A erman, Senterfitt & Eidson, P.A., Orlando, Florida, Disclosure Counsel. Bond Counsel has not been engaged to, tjor has it undertaken to, review the accuracy, completeness or sufficiency of this Official Statement or any otheroffe ing material relating to the Series2002 Bonds; provided, however, that Bond Counsel will render an opinion to the Underwriter of the Series 2002 Bonds relating to the accuracy of the statements contained herein under the heading "TAX 4XEMPTION" and certain statements which summarize provisions of the Resolution and the Series 2002 Bonds. Neither Bond Counsel nor the City Attorney has been engaged to opine as to compliance with any federal or state law with re Ord to the sale or distribution of the Series 2002 Bonds. Regarding this Official Statement, the City Attorney will renfer an opinion only as to the accuracy and sufficiency of the information set forth herein regarding legal matters relating to the City. 0 OR472121;9 15 • TAX EXEMPTION General The Internal Revenue Code of 1986, as amended (the "Code") establishes certain requirements which mustbe met subsequent to the issuance and delivcryof the Series 2002 Bonds in order that interest on the Series 2002 Bonds be and remain excluded from gross income for purposes of Federal income taxation. Noncompliance may cause interest on the Series 2002 Bonds to be included in federal gross income retroactive to the date of issuance of the Series 2002 Bonds, regardless of the date on which such noncompliance occurs or is ascertained. These requirements include, but are not limited to, provisions which prescribe yield and other limits within which the proceeds ofthe Series 2002 Bonds and the other amounts are to be invested and require that certain investment earnings on the foregoing must be rebated on a periodic basis to the Treasury Department of the United States. The City has covenanted in the Resolution to comply with such requirements in order to maintain the exclusion from Federal gross income of the interest on the Series 2002 Bonds. In the opinion of Bond Counsel, assuming compliance with the aforementioned covenants, under existing statutes, regulations and judicial decisions, interest on the Series 2002 Bonds isexcluded from grossincome for purposes of Federal income taxation, interest on the Scrics 2002 Bonds isnot an item oftax preferencefor purposes of the federal alternative minimum tax imposed on individuals and corporations and the Series2002 Bonds are exemptfrom all present intangible personal property taxes imposed pursuant to Chapter 199, Florida Statutes. However, the interest on the Series 2002 Bonds may be subjectto the alternative minimum tax when any Scrics 2002 Bond is held by a corporation. The alternative minimum taxable income of a corporation must be increased by 75% of the excess of such corporation's adjustedcurrent earnings over its alternative minimum taxable income (before this adjustment and thealternative tax net operating loss deduction). "Adjusted current earnings" will include interest on the Series 2002 Bonds. Except as described above, Bond Counsel expresses no opinion regarding other federal tax consequences resulting from ownership of, receipt or accrual of interest on, or disposition of the Scrics 2002 Bonds. Prospective purchasers of the Series 2002 Bonds should be aware that (i) except as may be hereinafter described, Section 265 of the Code denies a deduction for interest on indebtedness incurred o r continued to purchase or carry the Series 2002 Bonds; (ii) with respect to insurance companies subject to the tax imposed by Section 831 of the Code, Section 832(b)(5)(B)(i) reduces the deduction for loss reserves by 15% of the sum ofcertain items, including interest on the Series 2002 Bonds; (iii) interest on the Series 2002 Bonds earned by certain foreign corporations doing business in the United States could be subject to a branch profits tax imposed by Section 884 of the Code; (iv) passive investments income, including interest on the Series 2002 Bonds, may be subject to federal income taxation under Section 1375 of the Code for Subchapter S corporations that have Subchapter C earnings and profits at the close of the taxable year if greater than 25% of the gro ss receipts of such Subchapter S corporations is passive investment income; and (v) Section 86 of the Code requires recipients of certain Social Security and certain Railroad Retirement benefits to take into account, in determining the taxability of such benefits, receipts or accruals of interest on the Series 2002 Bonds. Other provisions of the Code may give rise to adverse federal income tax consequences to particular Series 2002 Bondholders. Holders of the Series 2002 Bonds should consult their own tax advisers with respect to the tax consequences to them of owning the Series 2002 Bonds. During recent years, legislative proposals have been introduced in Congress, and in some cases enacted, that altered certain federal tax consequences resulting from the ownership of obligations that are similar to the Series 2002 Bonds. In some cases, these proposals have contained provisions that altered these consequences on a retroactive basis. Such alteration of federal tax consequences may have affected the market value of obligations similar to the Series 2002 Bonds. From time to time, legislative proposals are pending which could have an effect on both the federal tax consequences resulting from ownership of the Series 2002 Bonds and their market value. No assurance can be given that additional legislative proposals will not be introduced or enacted that would or might apply to, or have an adverse effect upon, the Series 2002 Bonds. OR472121;9 16 � 0 Tax Treatment of Original Issue Discount Under the Code, the difference between the ___ and ____, and the initial offering price to th organizations acting in the capacity of underwriters Bonds of the same maturity was sold is "original iss such Series 2002 Bonds at a constant interest rate com Bonds in the initial public offering at a price equal receiving an amount of interest excludable from gross) discount accruing during the period he or she holds s in such Series 2002 Bonds by the amount ofsuch ace the sale or other disposition of such Series 2002 ownership, sale, or other disposition of Series 2002 offering price may be determined according to rules should consult their own tax advisors with respect to thl accrued upon sale or other disposition of Series 2002 owning and disposing of Series 2002 Bonds. Tax Treatment of Bond Premium The Series 2002 Bonds maturing on April I in excess of the principal amount thereof. Underth amount of the bond (other than for a bondholder who in the ordinary course of business) is generally characl premium is amortized over the term of such Series 20 basis in such Series 2002 Bonds by the amount of an such Series 2002 Bond. The amount of the amortim on an actuarial basis at a constant interest rate con premium attributable to a taxable year is not deducti naturity amounts of the Series 2002 Bonds maturing in the years public, excluding bond houses, brokers or similar persons or wholesalers, at which price a substantial amount of Series 2002 discount" Original issue discount will accrue over the term of ioundedperiodically. A purchaserwho acquires such Series 2002 the initial offering price thereof to the public will be treated as income for federal income tax purposes equal to the original issue ch Series 2002 Bonds, and will increase his or her adjusted basis .ling discount forpurposes of determining taxable gain or loss on ands. The federal income tax consequences of the purchase, onds which are not purchased in the initial offering at the initial hich differ from those above. Owners ofsuch Series 2002 Bonds precise determination for federal income tax purposes of interest Bonds and with respect to the state and local tax consequences of through April 1, , inclusive, were offered atprices Code, the excess of the cost basis of a bond over the principal olds a bond as inventory, stock in trade, or for sale to customers rized as "bond premium". For federal income tax purposes, bond Bonds. A b ondowncr will therefore be required to decrease his rtizable bond premium attributable to each taxable yearhe holds le bond premium attributable to each taxable year is determined ounded on each interest payment date. The amortizable bond e for federal income tax purposes. In addition, the Series 2002 Bonds maturing Dn April 1, __, wereofferedat prices in excess ofthe principal amount thereofto achieve a yield based on the date oil which such Series 2002 Bonds are subject to optional redemption by the City (the "Call Date") rather than the maturity c ate (the "Callable Premium Bonds"). Under the Code, the excess of the cost basis of a Callable Premium Bond over the amount payable at the Call Date of the Callable Premium Bond that minimizes the yield to a purchaser of a Callable remium Bond (other than for a bondowner who holds a bond as inventory, stock in trade, or for sale to customers in the ordinary course of business) is generally characterized as "bond premium". For federal income tax purposes, bond pr mium is amortized over the period to the C all Date of a Callable Premium Bond. A bondowner will therefore be required to decrease his basis in the Callable Premium Bond by the amount of the amortizable bon d premium attributablelto each taxable year he holds such Callable Premium Bond. The amount of the amortizable premium attributable to a#ch taxable year is determined on an actuarial basis at a constant interest rate compounded on each interest payment dite. The amortizable bond premium attributable to a taxable year is not deductible for federal income tax purposes. Owners of the Series 2002 Bonds described above should consult their own tax advisors with respect to the precise determination for federal income tax purposei of the treatment of bond premium upon sale,redemption or other disposition of such Series 2002 Bonds. UNDERWRITING William R. plough & Co. (the "Underwriter'!) has agreed, subject to certain conditions, to purchase the Series 2002 Bonds from the City at a purchase price of $_ ($_ original par amount, less Underwriter's discount of$ and less net original issue discount of $ ). The Underwriter's obligation is subject to certain conditions precedent, and it will be ob ligated to purchase all oft a Series 2002 Bonds if any Series 2002 Bonds are purchased. The Series 2002 B onds may be offered and sold to certain Dealers (including dealers depositing such Series 2002 B onds into 0 OR47212 1;9 17 investment trusts) at prices lower than the public offering price, and such public offering prices may be changed from time to time by the Underwriter. INVESTMENT POLICY The City investment policy applies to all the funds held by the City, with the exc eption of Pension Fund assets and Funds whose uses are restricted by debt covenants, prior contracts, legal, regulatory or other constraints. Permitted investments of the City funds pursuant to the City investment policy include the following: I . The Florida Local Government Surplus Trust Fund (administered by the State Board of Administration and commonly referred to as the "SBA"). 2. Direct obligations of the U.S. Government which include but are not limited to Treasury Bills, Treasury Notes, Treasury Bonds and Treasury Strips, 3. Obligations guaranteed by the U.S. Government as to principal and interest which include, but are not limitedto, Government N ational M ortgage Association (GNMA), Farmers Home Administration (FmHA), Small Business Administration (SBA), General Services Administration (GSA), Federal Housing Administration (FHA), Housing and Urban Development (HUD), Tennessee Valley Authority (TVA). 4. Time deposits and savings accounts in banks and savings and loan associations, under the laws of Florida and the United States, doing business in and situated in -state and collateralized as provided for by Florida Statutes Chapter280. 5, Securities issued and guaranteed by a federally sponsored corporation which are backed by, or the entity is capable o f borrowing from, the U.S. Treasury. These securities carry the"implied guarantee" of the U.S. Government and include the Federal Farm Credit Banks (FFCB), Federal Home Loan Bank Mortgage Corporation (FHLMC) (participation certificates), Federal National Mortgage Association (FNMA), Federal Home Loan Bank (FHLB) or its banks. b. Commercial Paper of anyUnited States corporation provided such notes have a rating ofAl/P1 by at least two of the five rating agencies. 7. Bankers Acceptance eligible for purchase by the Federal Reserve System issued by banks having a Moody's or Standard and Poor's commercial paper rating of at least Al/P1. 8. Securities and Exchange Commission registered money market funds shares that are open-ended, no -bad funds registered under the Federal Investment Company Act of 1940 Rule 2a-7 - Money Market Funds. The City may revise the aforementioned investment poIicy from time to time Amounts on deposit in the various funds and accounts created pursuant to the Resolution will be invested as provided in the Resolution; see Appendix B hereto and "SECURITY FOR THE SERIES 2002 BONDS - Investments" herein. I:0r91eW Standard & Poor's Ratings Service, a division of The McGraw-Hill Companies ("S&P") and Moody's Investors Service, Inc. ("Moody's") are expected to assign ratings of "AAA" and "Aaa", respectively, to the Series 2002 B onds, with the understanding that, upon delivery of the Series 2002 Bonds a municipal bond new issue insurance policy will be issued by Financial Guaranty, S&P has assigned an underlying rating of A- and Moody's has assigned an underlying rating of A2 to the Series 2002 Bonds if the Series 2002 Bonds were to be issued without credit enhancement. Such ratings reflect only theviews of such organizations and any desired explanation of the significance of such ratings should OR472121;9 18 be obtained from the rating agency furnishing the s& 55 Water Street, New York, New York 10041-0003, New York 10007-2796. Generally, a rating agency on investigations, studies and assumptions of its ow period of time or that such ratings will not be revise judgment of such rating agencies, circumstances so i may have an adverse effect on the market price of tl at the following addresses: Standard & Poor's Rating Services, id Moody's Investors Service, Inc., 99 Church Street,New York, ices its ratingon the information and materials furnished to it and There is no assurance such ratings will continue for any given downward or withdrawn entirely by the rating agencies, if in the rrant. Any such downward revision or withdrawal of such ratings Series 2002 Bonds. FINANCIAL STATEMENTS The City's general purpose financial state ents for its Escal year ended September 30, 2001 appearing in Appendix C hereto have been audited by Rachlin C hen & Holtz LLP, Fort Lauderdale, Florida, (the "Independent Auditor")as stated in their report i ncluded as partof ppendix C hereto. The Independent Auditor has consented to the use of such report herein. CONTINUING DISCLOSURE The City has agreed and undertaken for th benefit of the Holders and beneficial owners of the Series 2002 Bondholders and in order to assist the Underwriter io complying with the continuing disclosure requirements of SEC Rule 15c2-12 (the "Rule"), to provide certain financial information and operating data relating to the City and the Series 2002 Bonds in each year (the "Annual Report"), and in provide notices ofthe occurrence of certain enumerated events, if material. Such undertaking shall only apply so long is the Series 2002 Bonds remain outstanding under the Resolution. Any failure to comply with such undertaking is not "In event of default under the Resolution. The Annual Report and audited financial statements will be filed annually by the City pursuant to the undertaking with each Nationally Recognized Municipal Securities information Rep sitory ("NRMSIRs") described in the Continuing Disclosure Certificate (Appendix F hereto) as well as any state information depository that is subsequently established in the State of Florida (the "SID"). The notices of material events; will be filed by the City with the Municipal Securities Rulemaking Board or the NRM SIRS and with the SID. The specil c nature of the information to be contained in the Annual Report and the notices of material events are described in t Appendix F. With respect to the Series 2002 Bonds, no rty other than the City is obligated to provide, nor is expec red to provide, any continuing disclosure information with espect to the aforementioned Rule. The City has never failed to timely complywith the continuing disclosure obligallons of the Rule. DISCLOSURE REQUIRED BIV FLORIDA BLUE SKY REGULATIONS Pursuant to Section 5 17.051 , Florida Statut City except by an offering circular containing full obligations since December 31, 1975, as provided "Department"). Pursuant to Rule3E-400.003, Florii of the amounts and types of defaults, any legal pros has been appointed over the assets of the City, and i good faith that such information would not be consic been in default on any bond issued since Decembr investor. , no perso n may directly or indirectly offer or sell securities ofthe d fair disclosure of all defaults as to principal or interest on its y rule of the Florida Department of Banking and Finance (the Administrative Code, the Department has required the disclosure dings resulting from such defaults, whether a trustee or receiver tain additional financial information, unless the City believes in ed materialby a reasonable investor. The City is not and has not 31, 1975 which would be considered material by a reasonable ENFORCEAVILITY OF REMEDIES The rcmedies available to the owners of the ISeries 2002 Bonds upon an event of default under the Resolution and any policy of bond insurance referred to herein ar in many respects dependent upon judicial actions which are often subject to discretion and delay. Undcr existing cons rtutional and statutory law and judicial decisions, the remedies specified by the federal bankruptcy code, the Reso tion, the Series 2002 Bonds and any policy of bond insurance referred to herein may not bereadily available or may e limited. The various legal opinions to be delivered concurrently with the delivery of the Series 2002 Bonds (includini Bond Counsel's approving opinion) will be qualified, as to the OR472121;9 19 enforceability of the remedies provided in the various legal instruments, by limitations imposed by bankruptcy, reorganization, insolvency or other similar laws affecting the rights of creditors enacted before or after such delivery. FINANCIAL. ADVISOR Public Financial Management, Inc., Fort Myers, Florida, is serving as financial advisor to the City with respect to the issuance and sale of the Series 2002 Bonds. CONTINGENT FEES The City has retained Bond Counsel, the Financial Advisor and Disclosure Counsel with respect to authorization, sale, execution and delivery of the Series 2002 Bonds. Payment of certain ofthe fees of such professionals and a discount to the Underwriter are each contingent upon the issuance of the Series 2002 Bonds. MISCELLANEOUS Any statements made in this Official Statement involving matters of opinion or of estimates, whether or not so expressly stated, are set forth as such and not as representations of fact, and no representation is made that any of the estimates will be realized. The information contained above is neither guaranteed as to accuracy or completeness nor to be construed as a representation by the City or the U nderwriter. The informatio n and expressions of pinion here in are subject to change without notice and neither the delivery of this Official Statement nor any sale made hereunder is to create, under any circumstances, any implication that there has been no change in the affairs of the City from the date hereof. This Official Statem ent is submitted in conncctio n with the sale of the securities referred to herein and may not be reproduced or used, as a whole or in part, for any other purpose. Any statements in this Official Statement involving matters of opinion, whether or not expressly so stated, are intended as such and not as representations of fact. This Official Statement is notto be construed as a contract oragreement between the City and the purchasers or the Holders of any of the Series 2002 Bonds. CERTIFICATE AS TO OFFICIAL STATEMENT The execution and delivery of this Official Statement has been duly authorized by the City Commission of the City. At the time of delivery of the Series 2002 Bonds to the Underwriter, the City will provide to the Underwriter a certificate (which may be included in a consolidated closing certificate of the City) signed by those City officials who signed this Official Statement, relating to the accuracy and completeness of certain materials in this Official Statement and to its being a final official statement in the judgment of the undersigned for the purposes of SEC Rule I 5c2-12(b)(3). CITY OF TAMARAC, FLORIDA By: /s/ Joe Schreiber, Mayor By: /s/ Michael C. Cernech, Assistant City Manager and Interim Director of Finance OR472121;9 20 0 EJHBIT C FIRM OF PAYING AGENT AND B D REGISTRAR AGREEMENT 0 PAYING AGENT AND BOND., REGISTRAR AGREEMENT THIS PAYING AGENT AND BOND REGISTRAR AGREEMENT, dated as of 1, 2002, by and between the CITY OF TAMARAC, FLORIDA (the "Issuer"), and U.S. Bank National Association, a national banking association, having its principal place of business at 180 E. 5th Street, St. Paul, Minnesota 55101 (the "Bank"). WITNESSETH WHEREAS, the Issuer, by the Resolution (as hereinafter defined), has designated the Bank as Paying Agent and Bond Registrar for its $ Sales Tax Revenue Bonds, Series 2002, dated . 2002 (the "Bonds"); and WHEREAS, the Issuer and the Bank desire to set forth the Bank's duties as Paying Agent and Registrar and the compensation to be paid the Bank for its services. NOW, THEREFORE, it is agreed by the parties hereto as follows: SECTION 1. DUTIES. The Bank agrees to serve as Paying Agent and Bond Registrar for the Bonds and to perform the duties of Paying Agent and Registrar as specified in or contemplated by Resolution No. 98-156 adopted by the City Commission of the Issuer on May 27, 1998, as supplemented and amended from time to time, and as particularly replaced by Resolution No. 99-178 adopted by the City Commission of the Issuer on July 14, 1999 and as further supplemented and amended by Resolution No. 99- 192 adopted by the City Commission of the Issuer on July 14, 1999, and as amended and supplemented by Resolution No. 02 adopted by the City Commission of the Issuer on , 2002 (collectively, the "Resolution"). All capitalized undefined terms used herein shall have the meanings ascribed thereto in the Resolution. SECTION 2. DEPOSIT OF FUNDS. The Issuer shall deposit or cause to be deposited with the Bank, on or before the business day prior to the date payment is due on the Bonds, sufficient funds from the Pledged Revenues pledged for the payment of the Bonds under the Resolution to pay when due and payable the principal of, premium, if any, and interest on the Bonds. SECTION 3. USE OF FUNDS; CANCELED BONDS. The Bank shall use the funds received from the Issuer pursuant to Section 2 of this Agreement to pay the principal of, premium, if any, and interest on the Bonds in accordance with the Resolution. The Bank shall cremate canceled Bonds and transmit to the Issuer a certificate of destruction therefor. SECTION 4. STATEMENTS. The Bank shall prepare and shall send to the Issuer written statements of account relating to all transactions effected by the Bank pursuant to this Agreement at the end of each fiscal year of the Issuer. SECTION 5. OBLIGATION TO ACT, The Bank shall be obligated to act only in accordance with the Resolution and any written instructions received in accordance therewith; provided, however, that the Bank is authorized hereby to comply with any r� orders, judgments or decrees of any cou# with or without jurisdiction and shall not be 0 liable as a result of its compliance with th same. 11 • SECTION 6. RELIANCE BY b genuineness and authorization of the si€ any instruction, notice, release, reque pursuant to the Resolution. K. The Bank may rely absolutely upon the ,ure and purported signature of any part upon affidavit or other document delivered to it SECTION 7. COUNSEL; LIMIT�D LIABILITY. The Bank may consult with counsel of its own choice and shall have sale and complete authorization and protection for any action taken or suffered by it under the Resolution in good faith and in accordance with the opinion of such counsel. The Bank sh4II otherwise not be liable for any mistakes of fact or errors of judgment, or for any acts or oknissions of any kind unless caused by its willful misconduct or negligence. SECTION S. FEES AND EXPEL\ the Bank as Paying Agent and Bond Rc bank its proper fees and all expenses, incurred by it or its attorneys, agents a. powers and duties as Paying Agent and ] A. The Bank shall not be obligated to all of principal, interest or premium, if any, time receive under any of the provisions c SECTION 9. FURNISHING IND at all times, when requested to do so by pertaining to its functions as the Payir Bonds, and shall without further author slips, checks, certificates and other docun SECTION 10. CANCELLATION; its option, may cancel this Agreement al other party of its intention to cancel, and mutual consent of the parties hereto. 7 action upon final payment of the Bonds an ;S. In consideration of the services rendered by ,tray, the Issuer agrees to and shall pay to the irges, attorneys' fees and other disbursements employees in and about the performance of its A Registrar as set forth in the attached Exhibit and credit interest upon any moneys in respect �e in respect of the Bonds, which it shall at any he Resolution or this Agreement. MATION; AUTHORIZATION. The Bank shall, e Issuer, furnish full and complete information Agent and Bond Registrar with regard to the rtion, execute all necessary and proper deposit ►ts with reference thereto. IRMINATION. Either of the parties hereto, at it giving thirty (30) days written notice to the his Agreement may be canceled at any time by is Agreement shall terminate without further interest appertaining thereto. SECTION 11. SURRENDER OF FUNDS; REGISTRATION RECORDS; NOTIFICATION OF BONDHOLDERS. I the event of a cancellation of this Agreement, the Issuer shall deliver any proper and neqessary releases to the Bank (in a form acceptable to the Bank) upon demand and the Bank Ohall upon demand pay over the funds on deposit with the Bank as Paying Agent and Bo d Registrar in connection with the Bonds and surrender all registration books and relatod records, and the Issuer may appoint and name a successor to act as Paying Agent and Bond Registrar for the Bonds. The Issuer shall, in such event, at its expense, notify all holdgrs of the Bonds of the appointment and name of the successor, by providing notice in the manner required for the redemption of the Bonds. SECTION 12. NONASSIGNABILITY. This Agreement shall not be assigned by either party without written consent of tho other party. 2 SECTION 13. MODIFICATION. No modification of this Agreement shall be valid unless made by a written agreement, executed and approved by the parties hereto. SECTION 14. SEVERABILITY. Should any action or part of any section of this Agreement be declared void, invalid or unenforceable by any court of law for any reason, such determination shall not render any void, invalid or unenforceable any other section or other party of any section of this Agreement. SECTION 15. GOVERNING LAW. This Agreement shall be governed by and interpreted in accordance with the laws of the State of Florida. [Remainder of Page Intentionally Left Blank] 3 I] SECTION 16. MERGER OR COI SOLIDATION OF THE BANK. Any corporation into which the Bank may be merged or with which it may be consolidated, or any corporation resulting from any merger oi consolidation to which the Bank shall be a party, shall be the successor Paying Agent aid Registrar under this Agreement, without the execution or filing of any paper or any fu her act on the part of the parties hereto. IN WITNESS WHEREOF, the p axties hereto have caused this Agreement to be executed by their duly authorized officers and their official seals to be hereunto affixed and attested as of the date first above writtem (SEAL) CITY OF TAMARAC, FLORIDA i ATTEST: By: Name: Marion Swenson, CMC Title: City Clerk APPROVED AS TO FORM: By: Name: Mitchell S. Kraft Title: City Attorney (SEAL) 4 By: Name: Joe Schreiber Title: Mayor By: Name: Jeffrey L. Miller Title: City Manager U.S. BANK NATIONAL ASSOCIATION By: Name: Title: EXHIBIT A Fee for services as Paying Agent and Bond Registrar will be $ Out-of-pocket expenses will be reimbursed at cost. J:\Bonds\4415\para2,dm May I, 2002 0 INSURANCIE COMMITMENT Financial Guaranty Insurance Company 125 Park Avenue New York, NY 10017 (212)312-3000 (800)352-0001 MEMORANDUM REVISED Re: City of Tamarac, Florida Sales Tax Revenue Bonds, Series 2002 Enclosed please find one original and one copy of our commitment to provide municipal bond insurance or other credit or liquidity support for the above -referenced bonds. The commitment may include some or all of the following, as applicable: • Specimen bond insurance policy or surety bond and applicable endorsements. • Statement of insurance to be printed on the bonds. • Official Statement disclosure language. • Additional exhibits may be attached to the commitment letter, including conditions to the issuance of the policy and provisions to be incorporated into the legal documents. Commitment Due Date: May 23, 2002 FGIC Contact: Seth Lehman, Public Finance Closing Coordinator: Sonia Leon -Williamson (Phone 212-312-3282; Fax 212-312-3206) Payment Instructions: Wire transfer instructions are enclosed. Please fax a copy of the signature page of the original commitment letter by the due date noted above and return the original executed commitment letter to FG1C's Closing Coordinator. The Closing Coordinator should also receive bond proofs, official statement drafts and bond documentation, as well as any inquiries regarding commitment letter conditions or closing procedures. Please inform us as soon as possible of the closing date/policy issuance date. We look forward to working with you on this transaction. Thank you. cc: Dale Robert Bicknell, Florida Resident Agent :mjm 6003528 G:/PF/Lehman/FL - City Tamarac -Sales Tax Rev Bonds-Revised2 Financial Guaranty Insurance Company 125 Park Avenue New York, NY 10017 (212)312-3000 (800) 352-Ml AGE Capital Qupany Commitment For Municipal Bond Insurance Issuer: City of Tamarac, Florida i Bonds Insured: Not to exceed $13,500,DOO�n principal amount of Sales Tax Revenue Son , Series 2002 REVISED Date of Commitment: April 17, 2002 Expiration Date: July 17, 2002* Premium: 0.39% of total debt service on the Bonds Insured" FINANCIAL GUARANTY INSURANCE COMPANY ("Financial Guaranty") A Stock I0surance Company hereby commits to issue a Municipal Bond ew Issue Insurance Policy (the "Policy"), in the form attached hereto as Exhibit A, relating to the above -described debt obligations (the "Bonds"), subject to the terms and conditions contained herein or added hereto. To keep this Commitment in effect after the expiration Date set forth above, a request for renewal must be submitted to Financial Guaranty nor to such Expiration Date. Financial Guaranty reserves the right to refuse wholly or in part t grant a renewal. THE MUNICIPAL BOND NEW ISSUEJINSURANCE POLICY SHALL BE ISSUED IF THE FOLLOWING CONDITIONS ARE ATISFIED: 1. The documents to be executed and del vered in connection with the issuance and sale of the Bonds shall not contain any untrue or misleading statement of a material fact and shall not fail to state a material fact necessary ii i order to make the information contained therein not misleading. 2. No event shall occur which would pen*it any purchaser of the Bonds, otherwise required, not to be required to purchase the Bonds ion the date scheduled for the issuance and delivery thereof. Subject to written acceptance of thi Commitment being furnished to Financial Guaranty by the earlier of the date on which the disclosure document relating to the Bonds is circulated and May 23, 2002. ** The amount of Bond proceeds deposlied with the Trustee or Paying Agent at closing for the payment of accrued interest shall) not be applied as a credit in calculating total debt service on the Bonds Insured. Page I of 4 Financial Guaranty Insurance Company There shall be no material change in or affecting the Bonds (including, without limitation, the security for the Bonds) or the financing documents or the official statement (or any similar disclosure documents) to be executed and delivered in connection with the issuance and sale of the Bonds from the descriptions or forms thereof approved by Financial Guaranty. 4, The Bonds shall contain no reference to Financial Guaranty, the Policy or the municipal bond insurance evidenced thereby except as may be approved by Financial Guaranty. 5. Financial Guaranty shall be provided with the following: (a) (i) Executed copies of all financing documents, the official statement (or any similar disclosure document), and all Bond documentation evidencing the Issuer's ability and intent to comply with the Internal Revenue Code of 1986, as amended (if in the opinion of bond counsel (described below) ongoing compliance would be necessary to maintain the exemption from federal income taxation of interest on the Bonds), which shall be in form and substance acceptable to Financial Guaranty; (ii) the various legal opinions delivered in connection with the issuance and sale of the Bonds, including, without limitation, the unqualified approving opinion of bond counsel rendered by a law firm acceptable to Financial Guaranty and addressed to (or with a reliance letter addressed to) Financial Guaranty, which opinion shall include a statement to the effect that the interest on the Bonds is excludable from gross income of the holders thereof for federal income tax purposes under the Internal Revenue Code of 1986, as amended (if the Bonds are issued as tax-exempt obligations); and (iii) opinion(s) of counsel, addressed to and in form and substance satisfactory to Financial Guaranty, as to the due authorization, validity and enforceability of all financing and bond documentation. Copies of all drafts of such documents and legal opinions (blacklined as appropriate) prepared subsequent to the date of this Commitment shall be furnished to Financial Guaranty. Final drafts of such documents shall be provided to Financial Guaranty at least five (5) business days prior to the issuance of the Policy unless Financial Guaranty shall approve a shorter period and such documents shall be satisfactory to Financial Guaranty in all respects. (b) Evidence of wire transfer in federal funds in an amount equal to the insurance premium, unless alternative arrangements for the payment of the premium acceptable to Financial Guaranty have been made prior to the delivery date of the Bonds. 6. All drafts of the preliminary official statement, official statement or any other disclosure documents and the form of the Bonds should be directed to the attention of Sonia Leon -Williamson (212-312-3282) at Financial Guaranty for approval. All other documentation and any inquiries concerning this Commitment should be directed to Seth Lehman, the Financial Guaranty analyst assigned to this transaction. The applicable supplemental authorizing document shall contain all of the same terms granted to or for the benefit of Financial Guaranty to the same extent set forth in the authorizing documents relating to the Issuer's Financial Guaranty -insured Series 1999 Bonds. Such supplemental authorizing document shall be subject to Financial Guaranty review and approval. 8. If the subject transaction includes the issuance of refunding bonds, the following additional conditions shall be met: (a) The Escrow Agreement (the "Escrow Agreement") providing for the refunding of the bonds to be refunded with the proceeds of the Bonds (the "Prior Bonds') shall permit Page 2 of 4 Financial Guaranty Insurance Company the deposit solely of cash, dire America and securities fully and of principal and interest by the U guarantee the full faith and credit Refcorp interest strips, CATS, 7 AAA by S&P or Aaa by Moody'i and shall permit substitution of E upon the receipt by the escrow aA escrowed securities (assuming si payment of the Prior Bonds in ao (ii) an opinion of bond counsel b tax-exempt status of interest on Escrow Agreement shall not be F consent to such modification. t non -callable obligations of the United States of mconditionally guaranteed as to the timely payment cited States of America, to which direct obligation or of the United States of America has been pledged, IGRS, STRPS, or defeased municipal bonds rated (or any combination thereof) ("Direct Obligations") irect Obligations for other Direct Obligations solely ent of (i) a new verification of the sufficiency of the ch substitution has been made) to provide for the ordance with the tcrms of the escrow agreement and the effect that such substitution shall not affect the he Prior Bonds or the Bonds. Modification of the ermitted unless the holders of all of the Prior Bonds (b) At least five business days prier to the proposed date for delivery of the Policy, Financial Guaranty shall receive] for its review and approval (i) the verification by independent certified public accountants satisfactory to Financial Guaranty of the accuracy of the mathematical computation of the adequacy of the escrow established to provide for the payment of th$ Prior Bonds in accordance with the terms and provisions of the Escrow Agreement, (ii) as applicable, copies of the subscription forms for the purchase and issue of U.S. Treasury Securities - State and Local Government Series which have boen stamped as received by the Federal Reserve Bank or copies of the confirmations of Ourchase of open market Direct Obligations, and (iii) the form of an opinion of bond counsel addressed to Financial Guaranty (or a reliance letter relating thereto) to the effect that, upon the making of the required deposit to the escrow, the legal defeasance of t* Prior Bonds shall have occurred. An executed copy of such opinion shall be fo arded to Financial Guaranty, together with the documentation requested by Con�ition 5 hereof. (c) The Escrow Agreement may ptbvide that cash received by the escrow agent not required for purchase of the init' l investments that are referenced in the verification report may be invested, in accordlance with an opinion of bond counsel as described in Condition (a)(H) above, by t escrow agent, but only in noncallable Direct Obligations that mature in an amount at least equal to the purchase price of such Direct Obligations prior to the next scheduled interest payment date for the Prior Bonds. The escrow agent shall be responsiblelfor determining compliance with this requirement. (d) A forward supply contract rela ' g to the provision of such investments which is acceptable to Financial Guaranty1may be entered into at closing if (i) the terms thereof are consistent with the foregoing requirements, (ii) the Escrow Agreement provides that in the event of any discrep cy or difference between the terms of the forward supply contract and the Escrow Agreement, the terms of the Escrow Agreement shall be controlling, and (iii) the verification report shall expressly state that the adequacy of the escrow to accomplish the rerunding project relies solely on the initial escrowed investments and the maturing principal thereof and interest income thereon and does not assume performance under orl compliance with the forward supply contract. 9. The Bonds shall bear a Statement of In$urance in the form attached hereto as Exhibit B (also available online on our web site www.(elc tom). BOND PROOFS SHALL BE E APPROVD BY FINANCIAL GUARANTY PRIOR TO PRINTING. 0 Page 3 of 4 Financial Guaranty Insurance Company 10. The preliminary official statement and the official statement shall (a) be satisfactory in form and substance to Financial Guaranty and (b) shall contain the language attached hereto as Exhibit C and only such other references to Financial Guaranty as we shall supply or approve. Financial Guaranty's ofcial statement language and cover logo are also available online on our web site at www.fgfc.com 11. Promptly after the closing of the Bonds, Financial Guaranty shall receive three completed sets of executed documents (one original and two photocopies), copies of which we will deliver to each agency rating the Bonds. Authorized Representative To keep this commitment in effect to the Expiration Date set forth on the first page, Financial Guaranty must receive a duplicate of this Commitment executed by an appropriate officer of the Issuer by the earlier of the date on which the disclosure document relating to the Bonds is circulated and May 23, 2002. The undersigned agrees that if the Bonds are insured by a policy of municipal bond insurance, such insurance shall be provided by Financial Guaranty in accordance with the terns of this Commitment. Accepted as of by the City of Tamarac, Florida. 0 Name: Title: 6003528 QJPF/Lehman/M - City Tamw=-Sales Tax Rev Bonds-ReviscQ Page 4 of 4 Financial Guaranty Insurance Company 125 Park Avenue New York, NY 10017 (212) 312-3000 (800)352-0001 A GE Capital Company Municipal Bond New Issue Insurance Policy Issuer: Y Policy Number: Bonds: Financial Guaranty Insurance Company ("Finar consideration of the payment of the premium and irrevocably agrees to pay to State Street 13gpki "Fiscal Agent"), for the benefit of Bond , d debt obligations (the "Bonds") which e Nonpayment by the Issuer. Financial Guaranty will make such payments to t Due for Payment or on the Business Day next received Notice of Nonpayment, whichever is lat amount of principal and interest which is then Di Issuer but only upon receipt by the Fiscal Agen Bondholder's right to receive payment of the prig any appropriate instruments of assignment, that interest Due for Payment shall thereupon vest Guaranty shall become the owner of the Bond, a on such Bond and shall be fully subrogated Bondholder's right to payment thereof. Exhibit A FGIC. Control Number, 0010001 OPWka",V New York stock insurance company, in eUterms of this Policy, hereby unconditionally and 1Company, N.A., or its successor, as its agent (the ortion of the principal and interest on the above -described e Due for Payment but shall be unpaid by reason of Fiscal Agent on the date such principal or interest becomes bllowing the day on which Financial Guaranty shall have % The Fiscal Agent will disburse to the Bondholder the face for Payment but is unpaid by reason of Nonpayment by the in form reasonably satisfactory to it, of (i) evidence of the ipal or interest Due for Payment and (ii) evidence, including l of the Bondholder's rights to payment of such principal or i Financial Guaranty. Upon such disbursement, Financial :)urtenant coupon or right to payment of principal or interest all of the Bondholder's rights thereunder, including the This Policy is non -cancellable for any reason. a premium on this Policy is not refundable for any reason, including the payment of the Bonds prior to thee# maturity. This Policy does not insure against loss of any prepayment premium which may at any time be p4yable with respect to any Bond. As used herein, the term "Bondholder" means, as Ito a particular Bond, the person other than the Issuer who, at the time of Nonpayment, is entitled under the t s of such Bond to payment thereof. "Due for Payment" means, when referring to the principal of a Bond, a stated maturity date thereof or the date on which the same shall have been duly called for mandatory sinki g fund redemption and does not refer to any earlier date on which payment is due by reason of call for red ption (other than by mandatory sinking fund redemption), acceleration or other advancement of maturity an means, when referring to interest on a Bond, the stated date FGIC is a registered service mark used by Financial Guaranty Ins nce Company under license from its Patent company. FGIC Corporation. Form 9000 (10193) Pagel of 2 Financial Guaranty Insurance Company [; (`� I('t 125 Park Avenue 1 V 11 ++ New York, NY 10017 (212)312-3000 (800) 352-0001 A GE Capital Company Municipal Bond New Issue Insurance Policy for payment of interest. "Nonpayment" in respect of a Bond means the failure of the Issuer to have provided sufficient funds to the paying agent for payment in full of all principal and interest Due for Payment on such Bond. "Notice" means telephonic or telegraphic notice, subsequently con umed in writing, or written notice by registered or certified mail, from a Bondholder or a paying age fo the Bonds to Financial Guaranty. "Business Day" means any day other than a Saturday, Sunday or n ich the Fiscal Agent is authorized by law to remain closed. In Witness Whereof, Financial Guaranty has signed by its duly authorized officer in facsi� virtue of the countersignature of its duly President Effective Date: be affixed with its corporate seal and to be ve and binding upon Financial Guaranty by Authorized Representative State Street Bank and Trust Company, N.A., acknowledges that it has agreed to perform the duties of Fiscal Agent under this Policy. Authorized Officer FDIC is a registered service mark used by Financial Guaranty Insurance Company under license from its parent company, FGIC Corporation. Form 9000 (10/93) Page 2 of2 • • Financial Guaranty Insurance Company 125 Park Avenue New York, NY 10017 (212)312-3000 (900)352-0001 A GE Capita/ Company Endorsement To Financial Guaranty Insuran4e Company Insurance Policy rue. Policy Number: Control Number: 0010001 It is further understood that the term "Nonpayl interest made to a Bondholder by or on behalf Bondholder pursuant to the United States Bat final, nonappealable order of a court having col NOTHING HEREIN SHALL BE CONCH l IN ANY OTHER SECTION OF THE P In Witness Whereof, Financial Guaranty has to be signed by its duly authorized officer in by virtue of the countersignature of its duly a President Effective Date: ]�1 includes any payment of principal or 14d which has been recovered from such a trustee in bankruptcy in accordance with a 06 WAIVE, ALTER, REDUCE OR AMEND COVERAGE IF FOUNT] CONTRARY TO THE POLICY LANGUAGE, .SERE THE POLICY LANGUAGE. this Endorsement to be affixed with its corporate seal and to become effective and binding upon Financial Guaranty d representative. Authorized Representative Acknowledged as of the Effective Date written iabove: Authorized Officer State Street Hank and Trust Company, N.A., Fiscal Agent FGIC is aregistered service mark used by Financial Guaranty In ranee Company under license from its pavwt company. FGIC Corporation. Form E-0W2 (10/93) Page I of I EXHIBIT B Page B-1 (To be printed on the Bonds) STATEMENT OF INSURANCE Financial Guaranty Insurance Company ("Financial Guaranty") has issued a policy containing the following provisions with respect to the Bonds, such policy being on file at the principal office of [Paying Agent], as paying agent (the "Paying Agent"): Financial Guaranty hereby unconditionally and irrevocably agrees to pay for disbursement to the Bondholders that portion of the principal or accreted value (if applicable) of and interest on the Bonds which is then due for payment and which the issuer of the Bonds (the "Issuer") shall have failed to provide. Due for payment means, with respect to principal or accreted value (if applicable) the stated maturity date thereof, or the date on which the same shall have been duly called for mandatory sinking fund redemption and does not refer to any earlier date on which the payment of principal or accreted value (if applicable) of the Bonds is due by reason of call for redemption (other than mandatory sinking fund redemption), acceleration or other advancement of maturity, and with respect to interest, the stated date for payment of such interest. Upon receipt of telephonic or telegraphic notice, subsequently confirmed in writing, or written notice by registered or certified mail, from a Bondholder or the Paying Agent to Financial Guaranty that the required payment of principal, accreted value or interest (as applicable) has not been made by the Issuer to the Paying Agent, Financial Guaranty on the due date of such payment or within one business day after receipt of notice of such nonpayment, whichever is later, will make a deposit of funds, in an account with State Street Bank and Trust Company, N.A., or its successor as its agent (the "Fiscal Agent'), sufficient to make the portion of such payment not paid by the Issuer. Upon presentation to the Fiscal Agent of evidence satisfactory to it of the Bondholder's right to receive such payment and any appropriate instruments of assignment required to vest all of such Bondholder's right to such payment in Financial Guaranty, the Fiscal Agent will disburse such amount to the Bondholder. As used herein the term "Bondholder" means the person other than the Issuer or the borrower(s) of bond proceeds who at the time of nonpayment of a Bond is entitled under the terms of such Bond to payment thereof. The policy is non -cancellable for any reason. FINANCIAL GUARANTY INSURANCE COMPANY is • 0 [Disclosure Bond Insurance Concurrently with the issuance of the Bonds, Guaranty") will issue its Municipal Bond New The Policy unconditionally guarantees the pz value (if applicable) of and interest on the Boi unpaid by reason of nonpayment by the issuer make such payments to State Street Bank and (the "Fiscal Agent"), on the later of the date o; applicable) is due or on the business day next have received telephonic or telegraphic notice, by registered or certified mail, from an owner such amount by the Issuer. The Fiscal Agerr owner upon receipt by the Fiscal Agent of evil right to receive payment of the principal, accrf and evidence, including any appropriate instru to payment of such principal, accreted value e Guaranty. The term "nonpayment" in resp accreted value or interest (as applicable) mad from such owner pursuant to the United Sta accordance with a final, nonappealable order o The Policy is non -cancellable and the premil Bonds. The Policy covers failure to pay prine! their respective stated maturity dates or dates mandatory sinking fund redemption, and not o otherwise called for redemption, accelerated o an installment of interest on the stated date for Generally, in connection with its insurance of requires, among other things, (i) that it be gra holders of such securities upon the occurrence holders, and that such holders may not exerci in each case so long as Financial Guaranty h: under its insurance policy; and (ii) that any ai the principal legal documents be subject to F any, granted to Financial Guaranty in connecti description of the principal legal document Reference should be made as well to such desi under which the Issuer is required to provi( related matters. EXHIBIT C Page C-1 For Official Statement] Financial Guaranty Insurance Company ("Financial .ssue Insurance Policy for the Bands (the "Policy"). anent of that portion of the principal or accreted is which has become due for payment, but shall be ,f the Bonds (the "Issuer"). Financial Guaranty will Trust Company, N.A., or its successor as its agent which such principal, accreted value or interest (as )]lowing the day on which Financial Guaranty shall subsequently confirmed in writing, or written notice rf Bonds or the Paying Agent of the nonpayment of will disburse such amount due on any Bond to its ence satisfactory to the Fiscal Agent of the owner's ed value or interest (as applicable) due for payment nents of assignment, that all of such owner's rights interest (as applicable) shall be vested in Financial :t of a Bond includes any payment of principal, to an owner of a Bond which has been recovered :s Bankruptcy Code by a trustee in bankruptcy in a court having competent jurisdiction. a will be fully paid at the time of delivery of the ial or accreted value (if applicable) of the Bonds on )n which the same shall have been duly called for any other date on which the Bonds may have been advanced in maturity, and covers the failure to pay :s payment. ,n issue of municipal securities, Financial Guaranty ted the power to exercise any rights granted to the of an event of default, without the consent of such such rights without Financial Guaranty's consent, not failed to comply with its payment obligations endment or supplement to or other modification of iancial Guaranty's consent. The specific rights, if n with its insurance of the Bonds are set forth in the appearing elsewhere in this Official Statement. -iption for a discussion of the circumstances, if any, additional or substitute credit enhancement, and This Official Statement contains a section pegarding the ratings assigned to the Bonds and reference should be made to such section forj a discussion of such ratings and the basis for their assignment to the Bonds. Reference should be made to the description of the Issuer for a discussion of the ratings, if any, assigned to su�h entity's outstanding parity debt that is not secured by credit enhancement. The Policy is not covered by the Property/Casualty Insurance Security Fund specified in Article 76 of the New York Insurance Law or by the Florida Insurance Guaranty Association (Florida Insurance Code, §§ 631.50 et seq.). EXHIBIT C Page C-2 Financial Guaranty is a wholly -owned subsidiary of FGIC Corporation (the "Corporation"), a Delaware holding company. The Corporation is a subsidiary of General Electric Capital Corporation ("GE Capital"), Neither the Corporation nor GE Capital is obligated to pay the debts of or the claims against Financial Guaranty. Financial Guaranty is a monoline financial guaranty insurer domiciled in the State of New York and subject to regulation by the State of New York Insurance Department. As of September 30, 2001, the total capital and surplus of Financial Guaranty was approximately $1.033 billion. Financial Guaranty prepares financial statements on the basis of both statutory accounting principles and generally accepted accounting principles. Copies of such financial statements may be obtained by writing to Financial Guaranty at 125 Park Avenue, New York, New York 10017, Attention: Communications Department (telephone number. 212-312-3000) or to the New York State Insurance Department at 25 Beaver Street, New York, New York 10004-2319, Attention: Financial Condition Property/Casualty Bureau (telephone number. 212-480-5187). E SURETY COMMITMENT • Financial Guaranty Insurance Company 125 Park Avenue New York, NY 10017 (212)312-3000 (800)352-0001 A GE Cq*# 0w aV Commitment For Municipal Bond Insurance Issuer: City of Tamarac, Florida FDIC. REVISED Date of Commitment: April 17, 2002 Expiration Date: July 17, 2002* Bonds Insured: Sales Tax Revenue Bonds, Series Premium: 2.25% of Maximum Amount of Policy 2002, together with any parity obligations issued under the document authorizing the issuance of the Maximum Amount: A dollar amount equal to the Bonds, as amended and supplemented, and secured debt service reserve requirement for the Bonds, as by the same debt service reserve fund specified in the authorizing document FINANCIAL GUARANTY INSURANCE COMPANY ("Financial Guaranty") A Stock Insurance Company hereby commits to issue a Municipal Bond Debt Service Reserve Fund Policy (the "Reserve Policy"), in the form attached hereto as Exhibit A, relating to the above -described debt obligations (the "Bonds"), subject to the terms and conditions contained herein or added hereto. To keep this Commitment in effect after the expiration date set forth above, a request for renewal must be submitted to Financial Guaranty prior to such expiration date. Financial Guaranty reserves the right to refuse wholly or in part to grant a renewal. THE MUNICIPAL BOND DEBT SERVICE RESERVE FUND POLICY SHALL BE ISSUED IF THE FOLLOWING CONDITIONS ARE SATISFIED: 1. The documents to be executed and delivered in connection with the issuance and sale of the Bonds shall not contain any untrue or misleading statement of a material fact and shall not fail to state a material fact necessary in order to make the information contained therein not misleading. 2. No event shall occur which would permit any purchaser of the Bonds, otherwise required, not to be required to purchase the Bonds on the date scheduled for the issuance and delivery thereof. 3. There shall be no material change in or affecting the Bonds (including, without limitation, the security for the Bonds) or the financing documents or the official statement (or any * Subject to written acceptance of this Commitment being furnished to Financial Guaranty not later than May 23, 2002. Page 1 of 4 • C Financial Guaranty Insurance Company similar disclosure documents) to be ex cuted and delivered in connection with the issuance and sale of the Bonds from the deE criptions or fortes thereof approved by Financial Guaranty. 4. The Bonds shall contain no referenci to Financial Guaranty, the Reserve Policy or the reserve fund insurance evidenced t reby except as may be approved by Financial Guaranty. 5. Financial Guaranty shall be provided v ith: (a) Executed copies of all financ" g documents, the official statement (or any similar disclosure document), and all Bond documentation evidencing the Issuer's ability and intent to comply with the Internal Revenue Code of 1986 (if in the opinion of bond counsel (described below) on -going compliance would be necessary to maintain the exemption from federal income taxation of interest on the Bonds), which shall be in form and s4bstance acceptable to Financial Guaranty, and the various legal opinions delive d in connection with the issuance and sale of the Bonds, including, without li itation, the unqualified approving opinion of bond counsel rendered by a law fi acceptable to Financial Guaranty, which opinion shall include a statement to ti e effect that the interest on the Bonds is excludable from gross income for feder. 1 income tax purposes under the Internal Revenue Code of 1986 (if the Bonds are issued as tax-exempt obligations). (b) A letter from bond counsel iddrcssed to Financial Guaranty to the effect that Financial Guaranty may rely on the approving opinion of bond counsel as if such opinion were addressed to Fin ncial Guaranty. (c) An opinion of bond counsel, addressed to and in form and substance satisfactory to Financial Guaranty, as to the ue authorization, validity and enforceability of the authorizing document (ash einafter defined) and all other principal financing documents. (d) Evidence of wire transfer in Federal funds in an amount equal to the insurance premium, unless alternative arrangements for the payment of such amount acceptable to Financial Guaranty have been made prior to the delivery date of the Reserve Policy. The document authorizing the issuan" of the Bonds, as amended and supplemented (the "authorizing document') shall includelthe following terms and conditions: (a) The flow of funds shall be vised to provide that the Issuer's repayment of any draws under the Reserve P�licy and related reasonable expenses incurred by Financial Guaranty (together ith interest thereon at a rate equal to the lower of (i) the prime rate of Morgan G*ranty Trust Company of New York in effect from time to time plus Z% per a m and (ii) the highest rate permitted by law) shall enjoy the same priority as t"F obligation to maintain and refill the reserve fund. Repayment of draws, expenses and accrued interest (collectively, "Policy Costs') shall commence in the first xponth following each draw, and each such monthly payment shall be in an amount at least equal to 1/12 of the aggregate of Policy Costs related to such draw. Ifland to the extent that cash has also been deposited in the reserve fund, all such ca shall be used (or investments purchased with such cash shall be liquidated and t� proceeds applied as required) prior to any drawing under the Reserve Policy, an repayment of any Policy Costs shall be made prior Page 2 of 4 Financial Guaranty Insurance Company to replenishment of any such cash amounts. If, in addition to the Reserve Policy, any other reserve fund substitute instrument ("Additional Reserve Policy") is provided, drawings under the Reserve Policy and any such Additional Reserve Policy, and repayment of Policy Costs and reimbursement of amounts due under the Additional Reserve Policy, shall be made on a pro rata basis (calculated by reference to the Maximum Amounts available thereunder) after applying all available cash in the reserve fund and prior to replenishment of any such cash draws, respectively. (b) If the Issuer shall fail to repay any Policy Costs in accordance with the requirements of Paragraph 6(a) hereof, Financial Guaranty shall be entitled to exercise any and all. remedies available at law or under the authorizing document other than (i) acceleration of the maturity of the Bonds or (ii) remedies which would adversely affect Bondholders. (c) The authorizing document shall not be discharged until all Policy Costs owing to Financial Guaranty shall have been paid in full. (d) As security for the Issuer's repayment obligations with respect to the Reserve Policy, to the extent that the authorizing document pledges or grants a security interest in any revenues or collateral of the Issuer (or other obligor) as security for the Bonds, Financial Guaranty shall be granted a security interest in all such revenues and collateral, subordinate only to that of the Bondholders. (e) The additional bonds test and the rate covenant, if any, in the authorizing document shall expressly provide for at least one times coverage of the Issuer's obligations with respect to repayment of Policy Costs then due and owing. Furthermore, no additional bonds may be issued without Financial Guaranty's prior written consent if any Policy Costs are past due and owing to Financial Guaranty. The authorizing document shall be amended to provide that upon the issuance of additional parity obligations secured by the reserve fund, such reserve fund shall be fully funded (at the debt service reserve fund requirement) upon the issuance of such parity obligations, either with cash or permitted investments or by a reserve fund credit instrument acceptable to Financial Guaranty. (f) The authorizing document shall require the Trustee or Paying Agent, as applicable (the "Trustee") to ascertain the necessity for a claim upon the Reserve Policy and to provide notice to Financial Guaranty in accordance with the terms of the Reserve Policy at least two business days prior to each interest payment date. (g) The authorizing document shall not be modified or amended without the prior written consent of Financial Guaranty. (h) Financial Guaranty shall be provided with written notice of the resignation or removal of the Trustee and the appointment of a successor thereto and of the issuance of additional indebtedness of the Issuer at 125 Park Avenue, New York, New York 10017, Attention: Risk Management. (i) All of the conditions set forth in Financial Guaranty's Commitment for Municipal Bond Insurance in connection with the issuance of the Bonds shall have been met. Page 3 of 4 • Financial Guaranty Insurance Company 7. The Trustee, the Paying Agent or Guaranty shall be the custodian Bondholders in respect thereof. 8. The Reserve Policy shall terminate other third party as shall be acceptable to Financial the Reserve Policy and act as fiduciary for the scheduled final maturity date of the Bonds. 4. Prior to delivery of the Reserve Policy, the Issuer shall deliver to Financial Guaranty an executed Debt Service Reserve Fund I lolicy Agreement in substantially the form of Exhibit B hereto (the "Agreement") and an opinion of counsel to the Issuer in form and substance satisfactory to Financial Guaranty as to the due authorization, validity and enforceability of the Agreement. 10. Any official statement or similar dis osure document relating to the Bonds insured shall contain only (i) the language include in Exhibit C hereto and (ii) such other references to Financial Guaranty and the Reserve P liey as we shall supply or approve. 11. Promptly after the issuance of the lKeserve Policy, Financial Guaranty shall receive a completed set of executed documents. Authorized Representative To keep this commitment in effect to the Upiration Date set forth on the first page, Financial Guaranty must receive by May 23, 2002, a duplicate of this Commitment executed by an appropriate officer of the Issuer. The undersigned agrees that if the reserve fun requirement for the Bonds is met in whole or in part by a surety bond, letter of credit or insurance licy, such reserve fund credit instrument shall be a Reserve Policy provided by Financial Guarani in accordance with the terms of this Commitment. Accepted as of by the City of Tamarac, Florida. By: Name: Title: G:/Lehma /FL -City ofTamaroc-Sales Tax Rev 130nds-DW-4,evised Page 4 of 4 Financial Guaranty Insurance Company 125 Park Avenue New York, NY 10017 (212)312-3000 (800)352-0001 A GE Capital Company Municipal Bond Debt Service Reserve Fund Policy Issuer: Bonds: , together with any parity obligations issued under the authorizing document, as amended and supplemented, and secured by the same debt service reserve fund Paying Agent: Policy Number: Control Number: 0010001 Premi m ount: \ erminatlon Date: Exhibit A FDIC_ Financial Guaranty Insurance CompanIVancraal Guaranty"), a New York stock insurance company, in consideration of the payment of the premiW and subject to the terms of this Policy, hereby unconditionally and irrevocably agrees to pay the paying agent named above or its successor, as paying agent for the Bonds (the "Paying Agent"), for the benefit of Bondholders, that portion (not to exceed the Maximum Amount set forth above) of the amount required to pay principal and interest (but not any prepayment premium) on the Bonds which shall become Due for Payment but shall be unpaid by reason of Nonpayment by the Issuer. No payment shall be due hereunder for any event of Nonpayment that occurs after the Termination Date set forth above. Financial Guaranty will make such payment to the Paying Agent on the date such principal or interest becomes Due for Payment or on the Business Day next following the day on which Financial Guaranty shall have received Notice of Nonpayment, whichever is later. Upon such disbursement, Financial Guaranty shall become entitled to reimbursement therefor (together with interest thereon) all as provided in the Debt Service Reserve Fund Policy Agreement between the Issuer and Financial Guaranty dated as of the Effective Date of this Policy. The Maximum Amount shall be automatically reinstated when and to the extent that the Issuer repays amounts disbursed hereunder, but shall not be reinstated to the extent of amounts received by Financial Guaranty constituting interest on amounts disbursed to the Paying Agent pursuant to this Policy. Financial Guaranty shall provide Notice to the Paying Agent of any reinstatement of any portion of the Maximum Amount within one Business Day of such reinstatement. This Policy is non -cancellable for any reason, including the failure of the Issuer to reimburse Financial Guaranty for any payment made hereunder. As used herein, the term "Bondholder" means, as to a particular Bond, the person other than the Issuer who, at the time of Nonpayment, is entitled under the terms of such Bond to payment thereof. "Due for Payment" means, when referring to the principal of a Bond, the stated maturity date thereof or the date on which the same shall have been duly called for mandatory sinking fund redemption and does not refer to any earlier date on which payment is due by reason of call for redemption (other than by mandatory sinking fund redemption), acceleration or other advancement of maturity and means, when referring to interest on a Bond, the stated date for payment of interest. "Nonpayment" in respect of a Bond means the failure of the Issuer to have provided FGIC is a registered service mark used by Financial Guaranty Insurance Company under license from its parent company, FDIC Corporation. Form 9008 (12/94) Page I of 2 r1 • Financial Guaranty Insurance Company 125 Park Avenue New York, NY 10017 (212)312-3000 (800)352-0001 A GE Capital Company Municipal Bond Debt Service Reserve Fund Policy sufficient funds to the Paying Agent for payment Bond and includes any payment of principal or ii such Bond which has been recovered from such B, trustee in bankruptcy in accordance with a final, I "Notice" means telephonic or telegraphic notic registered or certified mail, from the Paying Al Guaranty to the Paying Agent, as the case in Sunday or a day on which the Paying Agent In Witness Whereof, Financial Guaranty caw signed by its duly authorized officer in facsimile virtue of the countersignature of its duly authorize President Effective Date: full of all principal and interest Due for Payment on such est made to a Bondlvldcr by or on behalf of the issuer of holder pursutip itWnited States Bankruptcy Code by a appealabletp a court having competent jurisdictiott. Tubs TtWrmed in writing, or written nonce oy s to Financial Guaranty or from Financial B ss Day" means any day other than a Saturday, z lll v law to remain closed. d this Policy to be affixed with its corporate seal and to be become effective and binding upon Financial Guaranty by representative. Authorized Representative State Street Bank and Trust Company, N.A., ackni#vledges that it has agreed to perform the duties of Fiscal Agent under this Policy. Authorized Officer FGIC is a registered service mark used by Financial Guaranty Ina nce Company under license from its parent company, FGIC Corporation. Form 9008 (12194) Page 2 o1`2 EXHIBIT B Page B-1 DEBT SERVICE RESERVE FUND POLICY AGREEMENT AGREEMENT, dated as of [Closing Date], by and between the City of Tamarac, Florida (the "Issuer') and Financial Guaranty Insurance Company (the "Insurer'). In consideration of the issuance by the Insurer of its Municipal Bond Debt Service Reserve Fund Policy (the "Reserve Policy") with respect to the Issuer's Sales Tax Revenue Bonds, Series 2002, together with any parity obligations secured by the same reserve fund (the "Bonds"), issued under the document authorizing the issuance of the Bonds, as amended and supplemented (the "Authorizing Document") and the Issuer's payment to the Insurer of the insurance premium for the Reserve Policy, the Insurer and the Issuer hereby covenant and agree as follows: 1. Upon any payment by the Insurer under the Reserve Policy, the Insurer shall furnish to the Issuer written instructions as to the manner in which repayment of amounts owed to the Insurer as a result of such payment shall be made. 2. The Issuer shall repay the Insurer the principal amount of any draws under the Reserve Policy and related reasonable expenses incurred by the Insurer and shall pay interest thereon at a rate equal to the lower of (i) the prime rate of Morgan Guaranty Trust Company of New York in effect from time to time plus 2% per annum and (ii) the highest rate permitted by law. 3. Repayment of draws, expenses and the interest thereon (collectively, "Policy Costs") shall enjoy the same priority as the obligation to maintain and refill the reserve fund. 4. Payment of Policy Costs shall commence in the first month following each draw, and each such monthly payment shall be in an amount at least equal to 1/12th of the aggregate of Policy Costs related to such draw. 5. Amounts paid to the Insurer shall be credited first to interest due under the Reserve Policy and hereunder, then to the expenses due hereunder and then to principal due under the Reserve Policy and hereunder. As and to the extent that payments are made to the Insurer on account of principal due under the Reserve Policy and hereunder, the coverage under the Reserve Policy will be increased by a like amount. b. If the Issuer shall fail to repay any Policy Costs in accordance with the requirements of the Authorizing Document and this Agreement, the Insurer shall be entitled to exercise any and all remedies available at law or under the Authorizing Document other than (i) acceleration of the maturity of the Bonds or (ii) remedies which would adversely affect Bondholders. 7. The Issuer shall ascertain the necessity for a claim upon the Reserve Policy and provide notice to the Insurer in accordance with the terms of the Reserve Policy at least two business days prior to each date upon which interest or principal is due on the Bonds. S. All cash and investments in the reserve fund shall be utilized for making required transfers to the debt service fund for payment of debt service on the Bonds before making any draws on any alternative credit instrument. Repayment of any Policy Costs shall be made prior to replenishment of any such cash amounts. Draws on all alternative credit instruments on which there is available coverage shall be made on a pro rata basis • 11 9 (calculated by reference to coveral instrument) after applying availa Repayment of Policy Costs and re: credit instruments shall be made coverage then available under e replenishment of any cash draws on EXHIBIT B Page B-2 then available under each such alternative credit e cash and investments in the reserve fund. ibursement of amounts with respect to alternative a pro rata basis (calculated by reference to the ,h such alternative credit instrument) prior to ie reserve fund. 9. The Authorizing Document shall notl be modified or amended without the prior written consent of the Insurer. 10. The Authorizing Document shall not be discharged until all Policy Costs owing to Financial Guaranty shall have been p#id in full. 11. As security for the Issuer's repayment obligations with respect to the Reserve Policy, to the extent that the Authorizing Doc ment pledges or grants a security interest in any revenues or collateral of the Issuer ( other obligor) as security for the Bonds, the Issuer hereby pledges and grants a secu ' oy interest in all such revenues and collateral, subordinate only to that of the Bo holders. The Issuer shall evidence the Insurer's pledge or security interest by the riling of appropriate Uniform Commercial Code financing and continuation statement¢. 12. The rate covenant and the additioOl bonds test (in each case, if applicable) in the Authorizing Document shall be ca ulated with at least one times coverage of the Issuer's obligations with respect to I repayment of Policy Costs then due and owing. Furthermore, no additional bonds ay be issued under the Authorizing Document without the Insurer's prior written consent if any Policy Costs are past due and owing to the Insurer. 13. The Issuer shall provide Financial G ranty with the following information: I (a) Notice of any drawing upeol or deficiency due to market fluctuation in the amount, if any, on deposit, iii� the debt service reserve fund; (b) Notice of any material ev"ts pursuant to Rule 15c2-12 under the Securities Exchange Act of 1934; (c) Notice of the redemption, of er than mandatory sinking fund redemption, of any of the Bonds, or of any advapce refunding of the Bonds, including the principal amount, maturities and CUSIP numbers thereof; and (d) Such additional information ps Financial Guaranty may reasonably request from time to time. 14. Notices to the Insurer shall be sent to the following address (or such other address as the Insurer may designate in writing). Financial Guaranty Insurance Company, 125 Park Avenue, New York, New York 100IV, Attention: Risk Management. 15, This Agreement may be executed in counterparts, each of which alone and all of which together shall be deemed one originaj Agreement. K If any one or more of the agreementqq, provisions or terms of this Agreement shall be for any reason whatsoever held invalid,lthen such agreements, provisions or terms shall be EXHIBIT B Page B-3 deemed severable from the remaining agreements, provisions or terms of this Agreement and shall in no way affect the validity or enforceability of the other provisions of this Agreement. 17. All capitalized terms used herein and not otherwise defined shall have the meanings ascribed to them in the Authorizing Document. 18. This Agreement and the rights and obligations of the parties of the Agreement shall be governed by and construed and interpreted in accordance with Florida law. IN WITNESS WHEREOF, the parties hereto have set their hands as of the date written above. City of Tamarac, Florida By: _ Name: Title: Financial Guaranty Insurance Company By: _ Name: Title: • 0 DISCLOSURE LANGUAGE (As used herein, "Bonds" means all Bc Debt Service Reserve Fund Policy Concurrently with the issuance of the Bonds, Guaranty") will issue its Municipal Bond Policy'). The Reserve Policy unconditiona principal or accreted value (if applicable) of i payment, but shall be unpaid by reason of nc amount paid under the Reserve Policy may Reserve Policy, [$ _ �,. Financial Gua (the "Paying Agent") for the Bonds on the 1; value (if applicable) and interest is due or o► Financial Guaranty shall have received teleph writing or written notice by registered or cert of such amount by the Issuer. The term "non of principal, accreted value or interest (as app recovered from such owner pursuant to th bankruptcy in accordance with a final ni jurisdiction. The Reserve Policy is non -cancellable and th the Bonds. The Reserve Policy covers failui the Bonds on their respective stated maturit called for mandatory sinking fund redemptio have been accelerated, and covers the failure its payment. The Reserve Policy shall termii being issued. Generally, in connection with its issuance of a other things, (i) that, so long as it has not fail Reserve Policy, it be granted the power to e authorizing document other than (A) accele adversely affect holders in the event that the draws on the Reserve Policy; and (ii) that an, of the principal legal documents be subject to any, granted to Financial Guaranty in connei forth in the description of the principal let Statement. Reference should be made as circumstances, if any, under which the issue substitute credit enhancement, and related mat The Reserve Policy is not covered by the 1 Article 76 of the New York Insurance L, (Florida Insurance Code, §§ 631.50 et seq.). EXHIBIT C Page C-1 INCLUSION IN O.S., IF ANY to which FGIC's Reserve Policy applies) 'inancial Guaranty Insurance Company ("Financial iebt Service Reserve Fund Policy (the "Reserve y guarantees the payment of that portion of the A interest on the Bonds which has become due for payment by the Issuer, provided that the aggregate iot exceed the maximum amount set forth in the 3nty will make such payments to the paying agent er of the date on which such principal or accreted the business day next following the day on which nic or telegraphic notice subsequently confirmed in ied mail from the Paying Agent of the nonpayment iyment" in respect of a Bond includes any payment cable) made to an owner of a Bond which has been United States Bankruptcy Code by a trustee in iappealable order of a court having competent premium will be fully paid at the time of delivery of to pay principal or accreted value (if applicable) of dates, or dates on which the same shall have been and not on any other date on which the Bonds may ► pay an installment of interest on the stated date for v on the scheduled final maturity date of the bonds Reserve Policy, Financial Guaranty requires, among -d to comply with its payment obligations under the Kercise any remedies available at law or under the ation of the Bonds or (B) remedies which would issuer fails to reimburse Financial Guaranty for any amendment or supplement to or other modification Financial Guaranty's consent. The specific rights, if Lion with its issuance of the Reserve Policy are set tl documents appearing elsewhere in this Official well to such description for a discussion of the of the Bonds is required to provide additional or )erty/Casualty Insurance Security Fund specified in or by the Florida Insurance Guaranty Association Financial Guaranty is a wholly -owned subsidiary of FGIC Corporation (the "Corporation"), a Delaware holding company. The Corpo tion is a subsidiary of General Electric Capital Corporation ("GE Capital"), Neither the Coloration nor GE Capital is obligated to pay the debts of or the claims against Financial Guaranty. Financial Guaranty is a monoline financial guaranty insurer domiciled in the State of New York and subject to regulation by the State of New York EXHIBIT C Page C-2 Insurance Department. As of September 30, 2001, the total capital and surplus of Financial Guaranty was approximately $1.033 billion. Financial Guaranty prepares financial statements on the basis of both statutory accounting principles and generally accepted accounting principles. Copies of such financial statements may be obtained by writing to Financial Guaranty at 125 Park Avenue, New York, New York 10017, Attention: Communications Department (telephone number. 212-312-3000) or to the New York State Insurance Department at 25 Beaver Street, New York, New York 10004-2319, Attention: Financial Condition Property/Casualty Bureau (telephone number: 212-480-5187). C 11 FINANCIAL GUARAWY INSURANCE COMPANY PROCEDURES FORIPAYMENT OF PREMIUM Financial Guaranty's issuance of its Municip Bond New Issue Insurance Policy (or Debt Service Reserve Fund Policy, if appropriate) at closi is contingent upon its receipt of the premium. NO POLICY WILL BE RELEASED UNTIL ORAL CONFIRMATION OF THE FEDERAL RESERVE WIRE REFERENCE NUMBE HAS BEEN RECEIVED. Set forth below are the procedures to be followed for confirming th amount of the premium to be paid and for paying such amount: Confirmation of Upon determination the final debt service schedule, provide such Amount to be Paid: schedule to Financial Guaranty, to the attention of the FGIC Closing Co inator, whose name and telephone number are referenced ill commitment letter, and subsequently confirm the amount of tho premium with the Closing Coordinator. Pint: Premium Dul Date Method of Payment: Wire Transfet of Federal Funds Wire Transfer BANKERS I ItUST NEW YORK Instructions: ABA Numb 021-001-033 16 Wall Stre , New York, New York For Credit to inancial Guaranty Insurance Company Account # 50 256-127 FGIC Policy FGIC Contact: FGIC Closinj Coordinator — see commitment letter Any questions concerning these procedures any premium payment method other than outlined above should be directed to the attention of he FGIC Closing Coordinator at least two banking days prior to the scheduled payment date. CONFIRMATION Or RECEIPT OF PREMIUM Financial Guaranty will accept as confirmati n of the premium payment a wire transfer number and the name of the sending bank, to be cor#municated on the closing date to the FGIC Closing Coordinator. Upon confirmation of the premium payment �nd satisfaction of the other conditions set forth in the commitment letter, Financial Guaranty will rocase the Policy. REQUESTS FOR F THER INFORMATION OR ALTERNATIVE PA MENT ARRANGEMENTS Requests for additional information regardf ng the procedures described above or as to the acceptability of alternate payment proceduregl should be directed to the FGIC Closing Coordinator at least two business days prior to the closing date. EXHIBIT F FORM OF CONTINUING DISCLOSURE CERTIFICATE d:\Bonds\441 S\omso7.dw May 1. 2002 • Pj • XI ►�I I Kim Q10i CERTIFICATE THIS CONTINUING DISCLOSUrdu CERTIFICATE ("Certificate") is executed and delivered by THE CITY OF TAMARAC, LORIDA (the "City" or the "Issuer"), in connection with the issuance of its $ Sal s Tax Revenue Bonds, Series 2002 (the "Series 2002 Bonds"). WIJNESSETH; WHEREAS, the Series 2002 Bonds fare being issued pursuant to Resolution No. 98-156 adopted by the City Commission of the City (the "City Commission") on May 27, 1998 (as supplemented and amended from time to time# and as particularly replaced by Resolution No. 99-178 adopted by the City Commission on July 14 1999 and as further supplemented and amended by Resolution No. 99-192 adopted by the City Commission on July 14, 1999, and as supplemented by Resolution No. 2002- adopted by the Citf Commission on April , 2002) (collectively, the "Resolution"); and WHEREAS, the City now desires to i Rule (hereinafter defined) to enable the P; connection with the issuance and sale of the NOW, THEREFORE, in consider contained and for other good and valuable hereby acknowledged, the City agree as fol into this Certificate with respect to the Disclosure gating Underwriter to comply with the Rule in :s 2002 Bonds; of the mutual agreements and covenants herein ideration, the receipt and sufficiency of which is 1. Recitals; Definitions. The fo egoing recitals are true and correct and incorporated herein by this reference. All capitalized to not otherwise defined herein shall have the meaning ascribed thereto in the Resolution. 2. Definitions. "Annual Report" shall mean a�y Annual Report provided by the City pursuant to, and as described in, Sections 3 and 4 hereof. "Beneficial Owner" shall megn any person which: (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Series 2002 Bonds (including persons holding Series 2002 Bonds through nominees, depositories or other intermediaries); or (b) is treated as t* owner of any Series 2002 Bonds for federal income tax purposes. "Business Day" shall mean a'4y other than a Saturday, Sunday or a day on which the New York Stock Exchange is closed OR475932;7 "Disclosure Rule" shall mean Rule 15c2-12(b)(5) promulgated by the Securities and Exchange Commission under the authority of the Securities Exchange Act of 1934, as the same may be amended or officially interpreted by the Securities and Exchange Commission from time to time. " Dissemination Agent" shall mean the City or any successor Dissemination Agent designated in writing by the City and which has filed with the City written acceptance of such designation. "Fiscal Year" shall mean the period commencing on October 1 and ending on September 30 of the next succeeding year, or such other period of time provided by applicable law. "Listed Events" shall mean any of the events listed in Section 5(a) hereof. "National Repository" shall mean any Nationally Recognized Municipal Securities Information Repository for purposes of the Disclosure Rule. Currently, the following are National Repositories: Bloomberg Municipal Repository 100 Business Park Drive Skillman, NJ 08558 Phone: (609) 279-3225 Fax: (609) 279-5962 Email: Munis@Bloomberg.com FT Interactive Data Attn: NRM SIR 100 William Street New York, NY 10038 Phone: (212) 771-6999 Fax: (212) 771-7390 (Secondary Market Information) (212) 771-7391 (Primary Market Information) Email: NRMSIR@FTID.com Standard & Poor's J.J. Kenny Repository 55 Water Street, 45th Floor New York, NY 10041 Phone: (212) 438-4595 Fax: (212) 438-3975 Email: nrrnsir—repository@sandp.com DPC Data, Inc. One Executive Drive Fort Lee, NJ 07024 Phone: (201) 346-0701 Fax: (201) 947-0107 Email: nrmsir@dpcdata.com A list of the names and addresses of all designated Nationally Recognized Municipal Securities Repositories as of any point in time is available by visiting the Securities and Exchange Commission's website at www.sec.gov/info/municipal/nnnsir.htm. oRa7s9a2;7 • "Obligated Person(s)" shall person(s), other than the bond insur( either generally or through an enteiT contract or other arrangement to suf Series 2002 Bonds, which person is nean, with respect to the Series 2002 Bonds, those for the Series 2002 Bonds (the "Bond Insurer"), who ise fund or account of such persons are committed by ort payment of all or a part of the obligations on such he City. "Participating Underwriter" s all mean the original underwriter of the Series 2002 Bonds that is required to comply wi the Disclosure Rule in connection with the offering of such Series 2002 Bonds. "Repository" shall mean eachl National Repository and each State Repository. "State Repository" shall mea i any public or private repository or entity designated by the State of Florida as a stater sitory for the purpose of the Disclosure Rule and recognized as such by the Securities nd Exchange Commission. As of this date, no such designation has been made by the Stg to of Florida. 3. Provisi (a) Not later than April 30 feach year commencing April 30, 2003, the City shall provide an Annual Report consistent with the requirements of Section 4 below to each Repository and to the Bond Insurer. The Annual Report may be submitted as a single document or as separate documents comprising a package; provided I iat the City's annual audited financial statements (the "Audit") may be submitted separately from the balance of the Annual Report and later than the date required above for the filing of the Annual Re ort if they are not available by that date; provided that in such event unaudited financial statement shall be delivered in a format similar to the audited financial statements contained in the final C Ifficial Statement (hereinafter defined) for the Series 2002 Bonds together with the balance of the'Anrival Report. If the City's Fiscal Year changes, the City shall give notice of such change in the dame manner as for a Listed Event under Section 5. (b) Not later than fifteenj(15) Business Days prior to the date set forth in (a) above, the City shall provide the Annual Reort to the Dissemination Agent (if other than the City). If the City is unable to provide to the Repositories an Annual Report by the date required in subsection (a), the City shall send a notice to (i) each National Repository or the Municipal Securities Rulemaking Board, and (ii) the Sjtate Repository in substantially the form attached as Exhibit A. (c) The Dissemination Agent shall: (i) determine eac year prior to the date for providing the Annual Report the name and address oftacli National Repository and the State Repository, if any; and oR475932;7 • (ii) if the Dissemination Agent is other than the City, file a report with the City certifying that the Annual Report has been provided pursuant to this Disclosure Certificate, stating the date it was provided and listing all the Repositories to which it was provided. 4. Contents of Annual Report. The Annual Report shall contain or incorporate by reference the following: (a) The Audit for the immediately preceding Fiscal Year, prepared in accordance with generally accepted accounting principles applicable to operations of the City, as same may be modified from time to time by Florida statutory requirements and the governmental accounting standards promulgated by the Government Accounting Standards Board. If the Issuer's audited financial statements are not available by the time the Annual Report is required to be filed pursuant to Section 3(a), the Annual Report shall contain unaudited financial statements in a format similar to the financial statements contained in the final Official Statement dated , 2002 (the "Official Statement"), and the audited financial statements shall be filed in the same manner as the Annual Report when they become available; and (b) an update of the financial information and operating data contained in the Official Statement under the following table: Historical Statement of Sales Tax Revenues and of Pro -Forma Debt Service Coverage. [To Be Further Developed] The information provided under Section 4(b) may be included by specific reference to other documents, including official statements of debt issues of the Issuer or related public entities, which have been submitted to each of the Repositories or the Securities and Exchange Commission. If the document included by reference is a final official statement, it must be available from the Municipal Securities Rulemaking Board. The Issuer shall clearly identify each such other document so included by reference. Reporting of Listed Events. (a) Pursuant to the provisions of this Section 5, the City shall give, or cause to be given, notice of the occurrence of any of the following Listed Events with respect to the Series 2002 Bonds, if material: (i) Delinquency in payment when due of principal or interest on the Series 2002 Bonds; OR475932:7 4 1.1 (ii) Non-payment kelated defaults; (iii) Amendment t the Resolution modifying the rights of the Holders of the Series 2002 Bonds (i eluding the pledge of any Additional Pledged Revenues as provided in the Resolut on; (iv) Optional, contingent or unscheduled prepayment of the Series 2002 Bonds; (v) Defeasance of1the Series 2002 Bonds or any portion thereof; (vi) Any change ij any rating of the Series 2002 Bonds; (vii) Adverse tax anions or events adversely affecting the tax- exempt status of the interest on the Series 2002 Bonds; (viii) Any unscheduled draw on the reserve account for the Series 2002 Bonds reflecting financial difficulties; (ix) Any unscheduled draw on the insurance policy issued by the Bond Insurer reflecting financial difoculties; (x) Any substitution of the Bond Insurer or any failure of the Bond Insurer to perform on its insurance p�licy, reserve policy, or surety bond; and (xi) The release, substitution, or sale of any property securing repayment of the Series 2002 Bonds Or any portion thereof. (b) Whenever the City obtains knowledge of the occurrence of a Listed Event, the City shall, as soon as possible, detertn4ie if such event would be material under applicable federal securities laws. Notwithstanding the foregoing, any event under clauses (i), (vi), (vii), (viii), (ix) or (x) shall always be deemed to be material. (c) If the City has determined that knowledge of the occurrence of a Listed Event would be material under applicable federal securities laws, the City shall promptly report the occurrence pursuant to subsection (d) below (d) If the City determitips that the Listed Event would be material under applicable federal securities laws, the City shlall file a notice of such occurrence with the Municipal Securities Rulemaking Board or each Nation4l Repository and the State Repository, and send a copy thereof to the Bond Insurer. Each such noti* shall be captioned "Material Event Notice" and shall prominently state the date, title and CUSIP Numbers of the Series 2002 Bonds to which it relates. OR475932;7 0 6. Termination of Reporting Obligations. The obligations of the City hereunder shall terminate upon the legal defeasance, prior prepayment or payment in full of all Outstanding Series 2002 Bonds orupon the termination of the continuing disclosure requirements ofthe Disclosure Rule by legislative, judicial or administrative action. If such termination occurs prior to the final maturity of the Series 2002 Bonds, the City shall give notice of such termination in the same manner as for a Listed Event under Section 5(d). 7, Dissemination_ Agent. The City may, from time to time, appoint or engage a Dissemination Agent other than itself to assist it in carrying out its obligations hereunder and may discharge any such Dissemination Agent with or without appointing a successor Dissemination Agent. Obligated Persons, The Obligated Person with respect to the Series 2002 Bonds shall be the City. 9. Default. In the event of a failure of the City or the Dissemination Agent to comply with any provision of this Certificate, any Holder or Beneficial Owner of Outstanding Series 2002 Bonds may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City or the Dissemination Agent, as the case may be, to comply with its obligations under this Certificate. Notwithstanding any other provision of the Resolution to the contrary, failure of the City or the Dissemination Agent to comply with the requirements of this Certificate shall not be considered an event of default under the Resolution, and the sole remedy under this Certificate in the event of any failure of the City or Dissemination Agent to comply with the provisions of this Certificate shall be an action to compel performance. 10. Amendment; Waiver. Notwithstanding any other provision hereof, the City and the Dissemination Agent may amend the provisions of this Certificate without consent of the Holders or Beneficial Owners of Series 2002 Bonds and any provision of this Certificate may be waived provided the undertaking, as amended or taking into account such waiver, would, in the opinion of nationally recognized bond counsel, have complied with the requirements of the Disclosure Rule at the time of the original issuance of the Series 2002 Bonds, after taking into account any amendments or interpretations of the Disclosure Rule, as well as any change in circumstances. In the event of any amendment or waiver of a provision of this Certificate, the City shall describe such amendment in the next Annual Report, and shall include, as applicable, a narrative explanation of the reason for the amendment or waiver and its impact on the type (or, in the case of a change of accounting principles, on the presentation) of financial information or operating data being presented by the City. In addition, if the amendment relates to the accounting principles to be followed in preparing financial statements: (i) notice of such change shall be given in the same manner as for a Listed Event under Section 5(d); and (ii) the Annual Report for the year in which the change is made should present a' comparison (in narrative form and also, if feasible, in OR475932:7 quantitative form) between the financial st principles and those prepared on the basis 11. Additional Information. No disseminating any other information, using or any other means of communication, or in notice of occurrence of a Listed Event, in ad( City chooses to include any information in Event in addition to that which is specifica obligation to update such information or occurrence of a Listed Event, 12. PuroOse of this Certificate. the benefit of the Holders and Benefi Section (b)(S)(i) of the Disclosure Rule. 13. Beneficiaries. The covenants City, the Dissemination Agent, the Participate from time to time of the Series 2002 Bonds 14. Governing Law. This C and Federal law and venue shall be in IN WITNESS WHEREOF, the day of , 2002. its as prepared on the basis of the new accounting former accounting principles. ig herein shall be deemed to prevent the City from means of dissemination set forth in this Certificate ding any other information in any Annual Report or )n to that which is required by this Certificate. If the Annual Report or notice of occurrence of a Listed required by this Certificate, the City shall have no lude it in any future Annual Report or notice of s Certificate constitutes the written undertaking for Owners of the Series 2002 Bonds required by ntained herein shall inure solely to the benefit of the Underwriter and the Holders and Beneficial Owners shall create no rights in any other person or entity. shall be governed bythe laws of the State of Florida County, Florida. have executed this Certificate as of the OF TAMARAC, FLORIDA Joe Schreiber, Mayor [SEAL] y: ATTEST Jeffrey L. Miller, City Manager Marion Swenson, CMC, City Clerk APPROVED AS TO FORM: Mitchell S. Kraft, City Attorney OR475932;7 7 EXHIBIT "A" NOTICE OF FAILURE TO FILE ANNUAL REPORT Name of Issuer: City of Tamarac, Florida Name of Bond Issue: S Sales Tax Revenue Bonds, Series 2002 (the "Series 2002 Bonds") Date of Issuance: 72002 NOTICE IS HEREBY GIVEN that the City has not provided an Annual Report with respect to the above -named Bonds as required by Sections 3 and 4 of the Continuing Disclosure Certificate, The City anticipates that the Annual Report will be filed by Dated: CITY OF TAMARAC, FLORIDA By:____ Name: Title: oR475932;7 10 STATE OF FLORIDA: COUNTY OF BROWARD: Each of the undersigned members (the "Issuer"), recognizing that the purcha� Florida Sales Tax Revenue Bonds, Series this Certificate, DOES HEREBY CERTII I the Commission of the City of Tamarac, Florida � of the not to exceed $13,500,000 City of Tamarac, 2 will have purchased said Bonds in reliance upon (1) that he or she has no person a l knowledge that any two or more members of the Commission meeting together, reached any prior conclusion as to whether the actions taken by the Commission with respect to said Bonds, the security therefor and the application of the proceeds thereof, should or should not bet ken by the Commission or should or should not be recommended as an action to be taken or npt to be taken by the Commission, except at public meetings of the Commission held after d*e notice to the public was given in the ordinary manner required by law and custom of thO Commission; and (2) that he or she does not have with any business entity which is purcha IN WITNESS WHEREOF, we have J J:\BONDS\4415\ C ERTPM,DOC hold any employment or contractual relationship .a the Bonds from the Issuer. V�. C our official si�i tures this�li day // * ^ I, Marion Swenson, City Clerk c connection with the issuance this day by Florida Sales Tax Revenue Bonds, Series 1. The following is a correct Commission of the City of Tamarac, Flori of commencement and expiration of their � OFFICE Mayor Vice Mayor Commissioner Commissioner Commissioner City Clerk City Manager Assistant City Manager/Interim Finance Director City Attorney OFFICER Joe Schreiber Edward C. Portner Gertrude Mishkin Karen L. Roberts Marc L. Sultanof Marion Swenson Jeffrey L. Miller Michael C. Cernech Mitchell S. Kraft, Esq. 2. The official seal of the City said City, is the seal an impression of Certificate. e City of Tamarac, Florida (the "Issuer"), in Issuer of the $ IS, 2?-Q, 000 City of Tamarac, 2 DO HEREBY CERTIFY: of the names of the members of the City and of certain other officers, and of the dates ective terms of office: COMMENCEMENT OF SERVICE �'l19� jaoA � V/9Iaoa� ,alo 0 EXPIRATION OF TERM At the pleasure of the Commission At the pleasure of the Commission At the pleasure of the City Manager At the pleasure of the Commission of Tamarac, Florida, being the only seal used by which is affixed opposite my signature on this WITNESS my ha d and the official seal of the City of Tamarac, Florida, referred to above; this, day of , 2002. CITY OF TAMARAC, FLORIDA (SEAL) i By: City Clerk J:\Bonds\4415\closing\certinc.doc May 2, 2002 Page 1 of 1 Marion Swenson From: Duane D. Draper [ddraper@bmolaw.com] Sent: Thursday, May 09, 2002 11:58 AM To: Leanne Williams; Marion Swenson Subject: RE: Reso numbers She does not need to sign since she was not presen -----Original Message ----- From: Leanne Williams [mailto:LeanneW Sent: Thursday, May 09, 2002 11:22 AM To: Marion Swenson Cc: Duane D. Draper Subject: RE: Reso numbers Marion: Since she didn't vote, I don't think she will sigi Duane: The bond is R2002-125, the other is thanks, Leanne PS I will let Mike know the reso number -----Original Message ----- From: Marion Swenson Sent: Thursday, May 09, 2002 11:04 To: Leanne Williams Subject: Reso numbers TR9772 — Resolution R2002-124 TR9674 — Resolution R2002-125 but Duane will confirm. - the underwriter. Also, Gert Mishkin did not vote on TR9f74 or TR9772 — does she need to sign the certificate a to public meetings and no conflict of inter st? Bond Counsel may need to answer that for us. 5/9/2002