Ordinance 2011-375 - Laserfiche WebLink

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Section 3.5. Securitv for the Bond. (a) Covenant to Budf!et and Appropriate. The City hereby covenants and agrees to appropriate in its annual budget, by amendment, if necessary, from Non-Ad Valorem Revenues lawfully available in each Fiscal Year, amounts sufficient to pay the principal and interest due on the Bond in accordance with their terms during such Fiscal Year. Such covenant and agreement on the part of the City to budget and appropriate such amounts of Non-Ad Valorem Revenues shall be cumulative to the extent not paid, and shall continue until such Non- Ad Valorem Revenues or other legally available funds in amounts sufficient to make all such required payments shall have been budgeted, appropriated and actually paid. Notwithstanding the foregoing covenant of the City, the City does not covenant to maintain any services or programs, now provided or maintained by the City, which generate Non-Ad Valorem Revenues. Such covenant to budget and appropriate does not create any lien upon or pledge of such Non-Ad Valorem Revenues, nor does it preclude the City from pledging in the future its Non-Ad Valorem Revenues, nor does it require the City to levy and collect any particular Non-Ad Valorem Revenues. The Bank acknowledges that it may not have a prior claim on the Non-Ad Valorem Revenues as opposed to claims of general creditors of the City. Such covenant to appropriate Non-Ad Valorem Revenue is subject in all respects to the payment of obligations secured by a pledge of such Non-Ad Valorem Revenues heretofore or hereafter entered into (including the payment of debt service on Bond and other debt instruments). However, the covenant to budget and appropriate in its general annual budget for the purposes and in the manner stated herein shall have the effect of making available in the manner described herein Non-Ad Valorem Revenues and placing on the City a positive duty to appropriate and budget, by amendment, if necessary, amounts sufficient to meet its obligations under this Agreement, subject, however, in all respects to the terms of this Agreement; and subject, further, to the payment of services and programs which are for essential public purposes affecting the health, welfare and safety of the inhabitants of the City or which arc legally mandated by applicable law. (b) Pledf!e of Pledf!ed Revenues. From and after the issuance of the Bond, and continuing until the payment in full of the Bond as to principal, interest (as the same may be adjusted in accordance with the provisions of this Agreement and the Bond), and any premium due, the Pledged Revenues shall be pledged for the prompt payment of the Bond. Without the prior written consent of the Holder, which consent may be granted, withheld or made subject to conditions in the Bank's sole discretion, the City will not terminate or modify its participation in the Half-Cent Sales Tax Program in any manner so as to impair or adversely affect in any manner the pledge of the Half-Cent Sales Tax made herein. Without the prior written consent of the Holder, the City will not change, revise or reduce its distribution of the Half-Cent Sales Tax. The City shall diligently enforce and collect the Half-Cent Sales Tax and shall take steps, actions and proceedings for the enforcement and collection of such Half-Cent Sales Tax as shall become delinquent to the full extent permitted or authorized by law, and will maintain accurate records with respect thereof. 7 MIA 182, 189,515v6 11-2-11