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HomeMy WebLinkAboutCity of Tamarac Resolution R-79-252C� Introduced by p4otion of V/M Massaro Temp. No. 1440 i CITY OF TAMARAC,` FLORIDA RESOLUTION NO.79-252 A RESOLUTION AUTHORIZING THE ISSUANCE OF NOT EXCEEDING $11,000,000 WATER AND SEWER UTILITY REVENUE BOND ANTICIPATION NOTES OF THE CITY.OF TAMARAC, FLORIDA, FOR THE PURPOSE OF PROVIDING FUNDS, TOGETHER WITH ANY OTHER AVAILABLE FUNDS, FOR PAYING THE COST OF ACQUIRING THE WATER TREATMENT AND DISTRIBUTION SYSTEM AND THE WASTEWATER COLLECTION AND DIS- POSAL SYSTEM OWNED BY TAMARAC UTILITIES, INC.; PROVIDING FOR THE PAYMENT OF SUCH NOTES AND THE INTEREST THEREON FROM THE PROCEEDS OF WATER AND SEWER UTILITY REVENUE BONDS AND BOND ANTICIPATION NOTES OF THE CITY OF TAMARAC OR FROM THE REVE- NUES DERIVED FROM SUCH SYSTEM; AND MAKING CERTAIN COVENANTS FOR THE BENEFIT OF THE HOLDERS OF SUCH NOTES. WHEREAS, under the authority granted by the Consti- tution and laws of the State of Florida, including the Home Rule Charter of the City of Tamarac, Florida (the "City") and Chapters 159 and 166, Florida Statutes, the City is authorized to issue water and sewer utility revenue bonds to pay the cost of acquiring an existing water treatment and distribution,system and wastewater collection and disposal system (collectively the "Water and Sewer Utility") and to pay the cost of improvements to the Water and Sewer Utility (hereinafter more particularly defined); .WHEREAS, the City Council has heretofore deter- mined and does hereby determine that the acquisition of the Water and Sewer Utility and proposed improvements thereto are necessary and desirable for the furtherance of the health, safety and welfare of the citizens of the City and others who will be customers of the Water and Sewer Utility; and WHEREAS, pursuant to the Home Rule Charter of the City a majority of the qualified electors of the City voting on the question at a special election held on October 9, 1979 approved the issuance of not exceeding $15,000,000 revenue bonds for the purpose of providing funds, together with any other available funds, for paying the cost of acquiring the water treatment and distribution system and the wastewater collection and disposal system owned by Tamarac Utilities, Inc. and acquiring and constructing improvements to such systems; and -1- WHEREAS, the City has heretofore entered into an Agreement of Purchase and Sale with Tamarac Utilities, Inc. for the acquisition by the City of the water treatment and distribution system and wastewater collection and disposal system owned and operated by Tamarac Utilities, Inc. and providing a domestic supply and sewage collection facility within the City and within a small area of the unincorpo- rated area in Broward County, Florida; and WHEREAS, the City Council has heretofore adopted Resolution No. 79-251 (the "Bond Resolution") entitled: "A RESOLUTION AUTHORIZING THE ISSUANCE OF NOT EXCEEDING $15,000,000 WATER AND SEWER UTILITY REVENUE BONDS OF THE CITY OF TAMARAC, FLORIDA, FOR THE PURPOSE OF PROVIDING FUNDS, TOGETHER WITH ANY OTHER AVAILABLE FUNDS, FOR PAYING THE COST OF ACQUIRING THE WATER TREATMENT AND DISTRIBUTION SYSTEM AND THE WASTEWATER COLLECTION AND DISPOSAL SYSTEM OWNED BY TAMARAC UTILITIES, INC. AND ACQUIR- ING AND CONSTRUCTING IMPROVEMENTS TO SUCH' SYSTEMS; PROVIDING FOR THE ISSUANCE OF ADDITIONAL WATER AND SEWER UTILITY REVENUE BONDS OR THE INCURRENCE OF INDEBTEDNESS TO THE STATE OF FLORIDA TO PAY ALL OR PART OF • THE COST OF ADDITIONAL IMPROVEMENTS TO THE CITY'S WATER AND SEWER UTILITY; PROVIDING FOR THE PAYMENT OF SUCH BONDS AND THE IN- TEREST THEREON FROM NET REVENUES OF THE CITY'S WATER AND SEWER UTILITY; AND SETTING FORTH THE RIGHTS AND REMEDIES OF THE HOLDERS OF SUCH BONDS" authorizing the issuance of not exceeding $15,000,000 Water and Sewer Utility Revenue Bonds of the City (the "Bonds"); and WHEREAS, the City Council has determined at this time to issue not exceeding $11,000,000 Water and Sewer Utility Revenue Bond Anticipation Notes of the City of Tamarac, Florida, for the purpose of providing funds, together with any other available funds, for paying the cost of acquiring the water treatment and distribution system and the wastewater collection and disposal system owned by Tamarac Utilities, Inc. in anticipation of the receipt of the proceeds of the Bonds; such notes together with the interest thereon to be payable from the proceeds of the Bonds or the net revenues to be derived from such systems; .10. -2- . NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF TAMARAC, FLORIDA: Section 1. For the purposes hereinabove mentioned, a temporary loan of Eleven Million Dollars ($11,000,000) is hereby authorized under and pursuant to the authority of Section 215.431 of the Florida Statutes, in anticipation of the receipt of the proceeds of the Bonds, which loan shall be evidenced by bond anticipation notes of the City in the principal amount of Eleven Million Dollars ($11,000,000). Said notes shall be designated "Water and Sewer Utility Revenue Bond Anticipation Notes" (hereinafter called the "Notes"), shall be dated as of their date of delivery, shall be stated to mature on October 15, 1980, and shall bear interest at a rate of seven and one-half per centum (7;�%) per annum payable on the date of maturity of the Notes to the bearer of each such Note said interest being payable either from the proceeds of the Bonds, other bond antici- pation notes, or from the Net Revenues (as defined in the Bond Resolution). Said Notes shall be payable as to princi- pal and interest at the principal office of the Fiscal Agent, shall be in any denomination divisible by $25,000, shall be numbered consecutively from 1 upwards, and both the principal of and the interest on said Notes shall be payable in any coin or currency of the United States of America which at the date of payment thereof is legal tender for the payment of public and private debts. Section 2. The Notes will be callable at any time at the option of the City at the price of par plus accrued interest to the date of redemption. Section 3. The Notes shall be signed by the Mayor of the City and by the City Clerk and the official seal of the City shall be impressed on said Notes. Said Notes shall be substantially in the following form: -3- 0 C� No. United States of America State of Florida CITY OF TAMARAC Water and Sewer Utility Revenue Bond Anticipation Note The City of Tamarac (herein sometimes called the "City")', in the State of Florida, for value received, hereby promises to pay, from the proceeds received from the sale of $ Water and Sewer Utility Revenue Bonds referred to below other bond anticipation notes or Net Revenues as defined in the Resolution referred to below, to the bearer hereof on 1980,.upon the presentation and surrender hereof at $ in the principal sum of THOUSAND DOLLARS in any coin or currency of the United States of America which at the date of payment thereof is legal tender for the payment of public and private debts, and to pay to the bearer hereof interestspes d principal sum from. the date hereof at the rate of one f` -Ra per centum ( 71� %) per annum until payment of such principal sum, such interest to the maturity hereof being payable on , 1980. This bond anticipation note shall not be deemed to constitute a debt of the City or a pledge of its faith and credit, and the issuance of this note shall not directly or indirectly or contingently obligate the City to levy or to pledge any taxes for the payment of this note or the interest thereon. This note is one of a series of $ 11,000,000_ Water and Sewer Utility Revenue Bond Anticipation Notes, all of like date, issued by the City of Tamarac pursuant to the provisions of Section 215.431, Florida Statutes, for money borrowed in the amount of the face thereof in anticipation of the receipt of the proceeds of the sale of not to exceed $15,000,000 Water and Sewer Utility Revenue Bonds which were duly authorized at an election held on October 9, 1979 and by a Resolution adopted by the City Council of the City of Tamarac on October 13 , 1979. The City hereby covenants to attempt to issue a principal amount of said Water and Sewer Util'ity Revenue Bonds sufficient, with any other moneys —4— available therefor, to pay the principal of and interest on all of said Water and Sewer Utility Revenue Bond Antici- pation Notes of which this is one in time to provide funds to make such payment hereof. Said Water and Sewer Utility Revenue Bond Antici- pation Notes of which this is one may be redeemed prior to maturity. It is hereby certified and recited that all acts, conditions and things required by the Constitution and laws of the State of Florida to happen, exist and be performed precedent to and in the issuance of this note have happened, exist and have been performed in regular and due form and time as so required. IN WITNESS WHEREOF, the City of Tamarac has caused this note to be"signed by its Mayor and by its City Clerk and the official seal of said City to be impressed hereon, all as of the day of , 19T9• Mayor . (Official Seal) • City Clerk Section 4. The City hereby covenants to attempt to sell on or before the maturity date of the Notes not exceeding $15,000,000 Water and Sewer Utility Revenue Bonds, the proceeds of which, together with other moneys available therefor, shall be used to pay when due the principal and - interest on the Notes authorized by this Resolution. Section 5. The words and terms having initial capital letters used in this Resolution and not defined herein are defined words and terms under the Bond Resolution and shall have the same meaning herein as in the Bond Resolution. Section 6. The proceeds of the Notes shall be applied by the City Manager as follows: ©-M 1. The sum of $11,000,000 represented by • Bond Anticipation Notes in a like principal amount shall be paid to Tamarac Utilities, Inc. in payment for the Water and Sewer Utility simultaneously with the delivery by Tamarac Utilities, Inc. of the Bill of Sale and Deeds specified in Section 5.A. of the Agreement. Section 7. The City covenants that schedules of rates for water and sewer service by the Water and Sewer Utility will be adopted by the City Council prior to or simultaneously with the issuance of the Notes and that such schedules will not be revised except as hereinafter provided in this Section and except that there shall be no restriction on increasing rates at any time. The City further covenants that it will fix, charge and collect rates and charges for the use of the services and facilities furnished by the Water and Sewer Utility and that from time to time, and as often as.it shall be necessary, it will adjust such rates and charges by increasing or decreasing the same or any selected categories of rates and charges so that the Revenues will at all times be sufficient in each Fiscal Year to provide an amount at least equal to the sum of one hundred twenty per centum (120%) of the total of the Current Expenses of the Water and Sewer Utility for the current Fiscal Year and the interest accruing on the Notes for the Current Fiscal Year. The City further covenants that if at any time the Revenues shall not be sufficient to provide such amount, it will revise the rates and charges for the services and 0 -6- facilities furnished by the Water and Sewer Utility and, if necessary, it will revise its regulations in relation to the collection of bills for such services and facilities, so that the rates and charges collected in the current and each subsequent Fiscal Year will result in Revenues sufficient to provide such amount. The City covenants that if in any Fiscal Year the Revenues shall not have been sufficient to provide the amount set forth in the second paragraph of this Section, it will before the 1st day of November of the following Fiscal Year request the Consulting Engineers or the Utility Rate Consultant to make their recommendations as to a revision of the rates and charges for the use of the services and facilities furnished by the Water and Sewer Utility and copies of such request and such recommendations shall be filed with the City Manager. In the event that the City shall fail to adjust the schedule of rates and charges in accordance with the provisions of this Section, the Fiscal Agent may and upon the written request of the holders of not less than..twenty- five per centum (25%) in principal amount of all Notes then outstanding shall institute and prosecute in a court of competent jurisdiction an appropriate suit, action or proceeding to compel the City to adjust such schedule in accordance • with the requirements of this Section, and the City covenants that it will adopt and charge rates and charges in compliance with any judgment, order or decree entered in any such suit, action or proceeding. Section 8. The City covenants that on or before the first day of each Fiscal Year it will adopt a budget of Current Expenses and Capital Expenditures for such Fiscal Year (herein sometimes called the "Annual Budget"). Copies of the Annual Budget shall be filed with the City Clerk, the Fiscal Agent and mailed by the City to all No e o ers who shall have filed their names and addresses with the City Clerk for such purpose. If for any reason the City shall not have adopted the Annual Budget before the first day of any Fiscal Year, the Annual Budget for the preceding Fiscal Year shall until the adoption of the Annual Budget, be deemed to be in force and shall be treated as the Annual Budget under the provisions of this Section. The City may at any time adopt an amended or supplemental Annual Budget for the remainder of the then current Fiscal Year, and the Annual Budget so amended or supplemented shall be treated as the Annual Budget under the provisions of this Section. Copies of any such amendment or supplemental Annual Budget shall be filed with theme Clerk, and mailed by the City to all Noteholders wo shall have filed their names and addresses with=the City . Clerk for such purpose. The City further covenants that the amount expended for Current Expenses in any Fiscal Year will not exceed the reasonable and necessary amount thereof, and that it will not expend any amount for maintenance, repair and operation of the Water and Sewer Utility in excess of the total amount provided for Current Expenses in the Annual Budget. Section 9. The City covenants and agrees that so long as any Bonds are outstanding under this Resolution, it will employ an independent engineer or engineering firm or corporation having a favorable repute for skill and experience in the construction and operation of waterworks and sewer systems. The cost of employing Consulting Engineers shall be treated as a part of the cost of operation and maintenance of the Water and Sewer Utility. 6 . . It shall be the duty of the Consulting Engineers to prepare and file with the City on or before the 1st day of May in each year a report setting forth their recommen- dations as to any necessary or advisable revisions of rates and charges and such other advice and recommendations as they may deem desirable. The City further covenants that the Consulting Engineers shall at all times have free access to all properties of the Water and Sewer Utility and every part thereof for the purposes of inspection and examination, and that its books, records and accounts may be examined by the Consulting Engineers at all reasonable times. Section 10. Following the delivery of the.Notes and pending the issuance of the Bonds all Revenues will be collected by the City and deposited as received with a Depositary or Depositaries to the credit of the Revenue Fund. All moneys in the Revenue Fund shall be held by the City in trust and applied as provided in Section 11 of this Resolution. Section 11. A special fund is hereby created and designated the "Tamarac Water and Sewer Utility Revenue Fund" (herein called the "Revenue Fund"). The City -covenants that all Revenues will be collected by the City and deposited as received with a Depositary or Depositaries to the credit of the Revenue Fund. A special fund is hereby created and designated "Tamarac Water and Sewer Utility Bond Anticipation Notes Interest Fund" (herein called the "Interest Fund"). All moneys in the Revenue Fund shall be held by the City in trust and applied as provided in this Resolution. The City Manager and the Mayor shall, on or before the 20th day of the month next succeeding the month in which the Notes are issued and not later than the 20th day of each month there- after withdraw an amount equal to the balance remaining in the Revenue Fund on the last day of the preceding month, less an amount (to be held for the payment of Current Expenses) equal to the amount necessary for Current Expenses during the next ensuing two (2) months as determined by the City Manager to the credit of the following funds in the following order: (a) to the credit of the Interest Fund an amount equal to one --eleventh (1/11) of the amount of interest payable on the Notes at maturity; and (b) to the credit of a special fund hereby created and designated "Tamarac Water and.Sewer Utility Renewal and Replacement Fund" to the credit of the Renewal and Replacement Fund such amount, if any, as may have been recommended in writing by the Consulting Engineers to be deposited to the credit of the Renewal and Replacement Fund in such month, which recommendation shall contain the respective amounts to be applied to capital expenditure items and to extraordinary maintenance items. Section 12. Except as hereinafter provided in this Section, or except in case of an emergency caused by some extraordinary occurrence, so characterized in a certificate signed by the Consulting Engineers and filed with the City Manager, and there shall be an insufficiency of moneys held for the credit of the Revenue Fund to meet such emergency, moneys held for the credit of the Renewal and Replacement Fund shall be disbursed only for the purpose of paying the cost of additions, extensions and improvements to the Water and Sewer Utility, the cost of unusual or extraordinary maintenance or repairs, the cost of renewals and replacements and the cost of acquiring, installing or replacing equipment and engineering, legal and administrative expenses relating to the foregoing and the cost of providing a local share of moneys required to entitle the City to receive Federal or State grants or participate in Federal or State assistance programs related to the Water and Sewer Utility or.for paying principal and interest on the Notes. Section 13. If for any reason the City shall be i unable to issue the Bonds in an amount sufficient to pay the principal of the Notes, together with the accrued interest thereon, or if the City shall for any reason be unable to renew the Notes, the moneys on deposit to the credit of the Interest and Principal Fund and the moneys to be deposited thereafter to the credit of the Interest and Principal Fund shall be applied first to the payment of the interest on the Notes and second to the payment of the principal of the Notes until the total principal of the Notes shall have been paid, together with the interest accrued thereon to the date of such payment and the moneys in the Renewal and Replacement Fund also shall be so applied. Section 14. All moneys received by the City under the provisions of this Resolution shall be held either by the City Manager in accordance herewith or shall be deposited with a Depositary or Depositaries, shall be held -in trust, shall be applied only in accordance with the provisions of this Resolution are hereby pledged to the pa ment of the principal of and -interest on the Notes subject to prior application only as herein provided and shall not ba subject to Ilen or attachment by any creditor of the City. All moneys held by the City Manager or deposited with any Depositary hereunder in excess of the amount guaranteed by the Federal Deposit Insurance Corporation or other Federal • Agency shall be continuously secured for the benefit of the City and the .holders of the Notes, either (a) by lodging with a bank or trust company approved by the City as custodian, or, if then permitted by law, by setting aside under control of the trust department of the bank holding such deposit, as collateral security, Government Obligations, or, with the approval of the City Manager, other Investment Obligations eligible as security for the deposit of trust funds under applicable regulations of the Comptroller of the Currency of the United States or applicable State of Florida law or regulations, having a market value (exclusive of accrued interest) not less than the amount of such deposit, or (b), if the furnishing of security as provided in (a) of this Section is not permitted by applicable law, in such other manner as may then be required, or permitted by applicable State of Florida or Federal laws or regulations regarding the security for, or granting a preference in the case of, the deposit of trust funds; provided, however, that it shall not be necessary for the Fiscal Agent to give security for the deposits of any moneys with it for the payment of the principal of or the interest on the Notes, or for the City Manager to give security for any moneys which shall be represented by obligations purchased under the provisions of this Section as an investment of such moneys. -10- All moneys held by the City Manager and deposited with each Depositary shall be credited to the particular Fund or Account to which such moneys belong. Moneys held for the credit of the Revenue Fund, the Renewal and Replacement Fund and the Interest and Principal Fund, shall, as nearly as may be practicable, be continuously invested and reinvested by the City Manager in Investment Obligations which shall mature, or which shall be subject to redemption by the holder thereof at the option of such holder, not later than the respective dates when moneys held for the credit of said Funds and Accounts will be required for the'purposes intended, or in Time Deposits; provided, however, that each such Time Deposit shall permit the moneys so placed to be available for use at the times provided above. Investment Obligations and Time Deposits so purchased as an investment of moneys in any such Fund shall be deemed at all times to be part of such Fund. The interest accruing thereon and any profit realized from such investment shall be credited to such Fund and any loss resulting f rom.such investment shall be charged to such Fund. The City Manager shall sell or present for payment or redemption any Investment Obligations so acquired whenever it shall be necessary so to do in order to provide moneys to meet any payment from such Fund or Account. Neither the City Manager nor any agent thereof shall be liable or responsible for any loss resulting from any such investment. In computing the amount in any Fund created pursuant to the provisions of this Resolution, obligations purchased as an investment of moneys therein shall be valued at the cost or market price thereof, whichever is lower, exclusive of accrued interest. Section 15. The City further covenants that, from the Revenues, it will pay all governmental charges lawfully levied or assessed upon the Water and Sewer Utility or any part thereof or upon any Revenues when the same shall become due, that it will duly observe and comply with all valid requirements of any municipal or governmental authority relative to the Water and Sewer Utility, that it will not create or suffer to be created any lien or charge upon the Water and Sewer Utility or any part thereof, or on the Revenues, other than as provided herein, ranking equally with or prior to the Notes, and that, out of the Revenues, it will pay or cause to be discharged, or will, make adequate —11— �J provision to satisfy and discharge all lawful claims and demands for labor, materials, supplies or other objects which, if unpaid, might by law become a lien upon the Water and Sewer Utility or any part thereof or the Revenues; provided, however, that nothing contained in this Section shall require the City to pay or cause to be discharged, or • make provision for, any such lien or charge so long.as the validity thereof shall be contested in good faith and by appropriate legal proceedings. Section 16. The City covenants that it will at all times carry insurance, in a responsible insurance company or companies authorized and qualified under the laws of the State of Florida to assume the risk thereof, covering such properties belonging to the Water and Sewer Utility as are customarily insured, and against loss or damage from such causes as are customarily insured against, by companies engaged in similar business: All such policies shall be for the benefit of the City, shall be made payable to the City and shall be deposited with the City Manager, and copies of such policies shall be filed with the Fiscal Agent and the City Manager shall have the sole right to receive the proceeds of such policies and to collect and receipt for claims thereunder. The proceeds of any and all such insurance shall be deposited by the City Manager in the name of the City in a Depositary. The City covenants that, upon any loss or damage to any properties of the Water and Sewer Utility resulting from any cause, whether or not such loss or damage shall be covered by insurance, it will proceed with the repairing, replacing or reconstructing (either in accordance with the original or a different design) of the damaged or destroyed property, and that it will forthwith commence and diligently prosecute the repair, replacement or reconstruction of the damaged or destroyed property unless it shall determine after consultation with the Consulting Engineers that the repair, replacement or reconstruction of such property is not essential to the efficient operation of the Water and Sewer Utility. The proceeds of all insurance referred to in this Section shall be available for and shall, to the extent necessary, be applied to the repair, replacement or recon- struction of the damaged or destroyed property, and shall be paid out in the manner provided in the Bond Resolution for payments from the Construction Fund. If such proceeds are more than sufficient for such purpose, the balance remaining shall be deposited to the credit of the Renewal and Replacement 0 -12- Fund. If such proceeds shall ,be insufficient for such purpose, the deficiency may be supplied out of any moneys in the Renewal and Replacement Fund. All insurance policies shall be open to the inspection of the Fiscal Agent and the Noteholders and their repre- sentatives at all reasonable times. The City Manager is hereby authorized in the name of the City to demand, collect, sue and receipt for the insurance money which may become due and payable under any policies payable to it. Any appraise- ment or adjustment of any loss or damage and any settlement or payment of indemnity therefor which may be agreed upon beween the City and any insurer shall be evidenced to the City Manager by a'certificate signed by the officer or officers of the City responsible for managing the Water and Sewer Utility. Notwithstanding the foregoing provisions of this Section, the City may institute and maintain fiscally sound and prudent self-insurance programs with regard to such risks as shall be consistent with the recommendations of a qualified and regionally recognized insurance consultant. Section 17. The City covenants and agrees that, so long as any of the Notes secured hereby shall be out- standing, none of the Revenues will be used for any purpose . other than as provided in this Resolution, and that no contract or contracts will be entered into or any action taken by which the rights of holders of the Notes might be impaired or diminished. Section 18. (a) The City covenants that so long as any Notes shall be outstanding under the provisions of this Resolution and except as in this Resolution otherwise permitted, it will not sell, lease.or otherwise dispose of or encumber the Water and Sewer Utility or any part thereof. The City may, however, from time to time, sell any machinery, fixtures, apparatus, tools, instruments, or other movable property acquired by it in connection with the Water and Sewer Utility, or any materials used in connection therewith, if the City shall determine that such articles are no longer needed or are no longer useful in connection with the construction or operation and maintenance of the Water and Sewer Utility, • an(T the proceeds thereof shall be applied to the replacement of'the properties so sold or disposed of or shall be deposited to the credit of the Renewal and Replacement Fund, at the option of the City. 0 (b) Notwithstanding the provisions of paragraph (a) of this Section, the City may from time to time sell, trade -13- • or lease such other property forming part of the Water and Sewer Utility as is not needed or serves no useful purpose • in connection with the maintenance and operation of the Water and Sewer Utility and the proceeds of any such sale of property which is declared by resolution of the City Council to be unnecessary for the Water and Sewer Utility shall be deposited to the credit of the Renewal, and Replacement Fund. The property received in exchange pursuant to any trade shall be deemed to be a part of the Water and Sewer Utility. The rentals under any such lease shall be deposited to the credit of the Revenue Fund. Section 19. If, when the Notes secured hereby shall have.become.due and payable in accordance with their terms or irrevocable instructions to pay the Notes..at their maturity shall have been given by the City to the Fiscal Agent acting as escrow agent, the whole amount of the principal and the interest so due and payable upon all of the'Notes then outstanding shall be paid or sufficient moneys, or Government Obligations, not callable at the option of the obligor, either the principal of and the interest on which when due or the principal of which when due will provide sufficient moneys, shall be held by the Fiscal Agent for such purpose under the provisions of this Resolution, and provision shall also be made for paying all other sums payable hereunder by the'City, then and in that case the right, title and interest of the holders of the Notes secured hereby in the Revenues and Funds mentioned in this Resolution • shall thereupon cease, determine and become void, and the City Council in such case, shall repeal and cancel this Resolution and may apply any surplus in any Fund other than moneys held for the payment of Notes and the interest thereon to any lawful purpose of the City'as the City Council shall determine; otherwise this Resolution shall be, continue and remain in,full force and effect. All moneys and obligations held by the Fiscal Agent pursuant to this Section shall be held in trust and the principal and interest of said obligations when received, and said moneys, applied to the payment, when due, of the principal and interest of the Notes to be paid. 11 11 s Section 20. This Resolution becomes effective immediately upon 1--tv passage. Passed, Approved and Adopted this / day of - - l 1979. - Mayor ATTEST;... Record of Council Vote Mayor Cit VI erk District. 1.' I hereby certify that I have approved the form District 2 and correctness of this Resolution. District 3 District 4 (, h City Attorney —15—