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2016-29685 Reso RESOLUTION NO. 2016-29685 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING A LOAN IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $19,800,000 FROM TD BANK, N.A., TO REFUND THE OUTSTANDING TAXABLE SPECIAL OBLIGATION REFUNDING BONDS (PENSION FUNDING PROJECT), SERIES 2005; AUTHORIZING THE EXECUTION AND DELIVERY OF A LOAN AGREEMENT AND PROMISSORY NOTE TO EVIDENCE THE OBLIGATION OF THE CITY TO REPAY SUCH LOAN; PROVIDING SECURITY FOR THE REPAYMENT OF THE LOAN; AUTHORIZING THE REFUNDING, DEFEASANCE AND REDEMPTION OF THE OUTSTANDING PENSION BONDS AND THE EXECUTION AND DELIVERY OF AN ESCROW DEPOSIT AGREEMENT; APPOINTING AN ESCROW AGENT; AUTHORIZING OTHER ACTIONS IN CONNECTION WITH THE LOAN AND THE REFUNDING PROGRAM; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Miami Beach, Florida (the "City") has previously issued its $53,030,000 original principal amount of City of Miami Beach, Florida Taxable Special Obligation Refunding Bonds (Pension Funding Project), Series 2005, of which $19,215,000 principal amount is currently outstanding (the "Outstanding Pension Bonds"); and WHEREAS, the City has determined that as a result of the current low interest • . environment it is financially_ beneficial to authorize the refunding of the Outstanding Pension Bonds as more particularly described in this Resolution (the "Refunding Program"); and WHEREAS, in connection with the Refunding Program, in response to a request for proposals from the City, TD Bank, N.A. (the "Bank"), has offered to the City a loan in an aggregate principal amount not to exceed $19,800,000 (the "Loan"); and WHEREAS, the City has determined that it is in the best interests of the City to undertake the Refunding Program through the Loan; and WHEREAS, to evidence its obligation to repay the Loan, the City will execute and deliver to the Bank a Loan Agreement (the "Loan Agreement") and a Taxable Note (the "Note"); and WHEREAS, to repay the Loan, the City wishes to covenant to budget and appropriate Non-Ad Valorem Revenues (as defined in the Loan Agreement), in accordance with and subject to the limitations contained in the Loan Agreement and the Note. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA: 010-8272-6578/2/AMERICAS SECTION 1. DEFINITIONS. Terms defined in.the preambles shall have the meanings set forth in such preambles. All capitalized terms used in this resolution (the "Resolution") which are defined in the Loan Agreement shall have the meanings assigned in the Loan Agreement, unless the context affirmatively requires otherwise. SECTION 2. FINDINGS. The preambles are incorporated as findings. In addition, it is found, determined and declared that in accordance with Section 218.385, Florida Statutes, as amended, undertaking the Refunding Program on a negotiated basis through the Loan is in the best interest of the City (rather than a sale through competitive bidding) because it offers (i) borrowing at lower rates than those which the City could command in the market, and (ii) flexibility of financing which could not be obtained in a sale through competitive bidding. SECTION 3. LOAN AUTHORIZED. The Loan in an aggregate principal amount not to exceed $19,800,000 to undertake the Refunding Program, as described in this Resolution and in the manner provided in the Loan Agreement, is authorized and approved. SECTION 4. AUTHORIZATION OF EXECUTION AND DELIVERY OF LOAN AGREEMENT. The Loan Agreement, in substantially the form attached as Exhibit "A" to this Resolution, with such changes, alterations and corrections as may be approved by the Mayor of the City (the "Mayor"), after consultation with the Chief Financial Officer of the City (the "Chief Financial Officer") and the City Attorney of the City (the "City Attorney"), such approval to be presumed by the execution by the Mayor of the Loan Agreement, is approved by the City. The City authorizes and directs the Mayor to execute and the City Clerk or Deputy City Clerk of the City (the "City Clerk") to attest under the seal of the City the Loan Agreement and to deliver the same to the Bank. SECTION 5. ISSUANCE OF NOTE. The Loan shall be evidenced by the Note. The Note, in substantially the form attached to the Loan Agreement, with such changes, alterations and corrections as may be approved by the Mayor, after consultation with the Chief Financial Officer and the City Attorney, such approval to be presumed by the execution by the Mayor of the Note, are approved by the City. The City authorizes and directs the Mayor to make and execute the Note and to issue and deliver the Note to the Bank. SECTION 6. SECURITY FOR THE LOAN. The Loan shall be payable solely from Non-Ad Valorem Revenues, in accordance with and subject to the limitations contained in the Loan Agreement and the 2 010-8272-6578/2/AMERICAS Note. Neither the Loan nor the Note shall be a general obligation of the City, or a pledge of its faith, credit or taxing power within the meaning of any constitutional or statutory provisions or limitations, but shall be payable solely as provided in the Loan Agreement and Note. The City shall not be obligated to exercise its taxing power to pay the principal of the Loan and the Note, the related interest or other payments or costs. SECTION 7. REFUNDING AUTHORIZED; ESCROW DEPOSIT AGREEMENT; ESCROW AGENT; ESCROW DEPOSIT TRUST FUND. The refunding, defeasance and redemption of the Outstanding Pension Bonds is hereby authorized and approved. The Outstanding Pension Bonds shall be redeemed as set for in the Escrow Deposit Agreement (the "Escrow Deposit Agreement") to be executed and delivered by the City and U.S. Bank National Association, which is hereby appointed escrow agent thereunder (the "Escrow Agent"). The Escrow Deposit Agreement, in substantially the form attached as Exhibit "B" to this Resolution, with such changes, alterations and corrections as may be approved by the Mayor, after consultation with the Chief Financial Officer and the City Attorney, such approval to be presumed by the execution by the Mayor of the Escrow Deposit Agreement, is approved by the City. The City authorizes and directs the Mayor to execute and the City Clerk to attest under the seal of the City the Escrow Deposit Agreement and to deliver the same to the Bank. There is created pursuant to the Escrow Deposit Agreement an Escrow Deposit Trust Fund (as defined in the Escrow Deposit Agreement) to be held by the Escrow Agent, for the deposit of the proceeds of the Loan and any other available moneys to be applied as provided in the Escrow Deposit Agreement. SECTION 8. GENERAL AUTHORITY. The City's officials, officers, attorneys, agents and employees are authorized to do all acts and things and execute and deliver any and all documents necessary by this Resolution, the Loan Agreement, the Note or the Escrow Deposit Agreement, or desirable or consistent with the requirements of this Resolution, the Loan Agreement, the Note or the Escrow Deposit Agreement, in order to obtain the Loan, accomplish the Refunding Program and provide for the full, punctual and complete performance of all the terms, covenants and agreements contained in the Loan Agreement, the Note, the Escrow Deposit Agreement and this Resolution, including the investment of proceeds of the Loan and any other available moneys as may be provided in the Escrow Deposit Agreement. SECTION 9. SEVERABILITY OF INVALID PROVISIONS. If any one or more of the provisions contained in this Resolution shall be held contrary to any express provisions of law or contrary to the policy of express law, though not expressly prohibited, or against public policy, or shall for any reason whatsoever be held invalid, then such covenants, agreements or provisions shall be null and void and shall be deemed separable from the remaining covenants, agreements or 3 010-8272-6578/2/AMERICAS provisions and shall in no way affect the validity of any of the other provisions of this Resolution or of the Loan Agreement, the Note or the Escrow Deposit Agreement. SECTION 10. REPEALING CLAUSE. All resolutions or parts of such resolutions of the City in conflict with the provisions contained in this Resolution are, to the extent of such conflict, superseded and repealed. SECTION 11. EFFECTIVE DATE. This Resolution shall become effective immediately upon adoption. PASSED AND ADOPTED this 14 day of becember , 2016. ' f :5 . / M r Attest: `* INCORP ORATED. * % �/ 277,V. 'mC , 26C5` City Clerk APPROVED AS TO FORM&LANGUAGE &FOR EXECUTION � � 1 City Attorney v pe°to 4 010-8272-6578/2/AMERICAS Resolutions - R7 K MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: December 14, 2016 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING A LOAN IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $19,800,000 FROM TD BANK, N.A., TO REFUND THE OUTSTANDING TAXABLE SPECIAL OBLIGATION REFUNDING BONDS (PENSION FUNDING PROJECT), SERIES 2005; AUTHORIZING THE EXECUTION AND DELIVERY OF A LOAN AGREEMENT AND PROMISSORY NOTE TO EVIDENCE THE OBLIGATION OF THE CITY TO REPAY SUCH LOAN; PROVIDING SECURITY FOR THE REPAYMENT OF THE LOAN; AUTHORIZING THE REFUNDING, DEFEASANCE AND REDEMPTION OF THE OUTSTANDING PENSION BONDS AND THE EXECUTION AND DELIVERY OF AN ESCROW DEPOSIT AGREEMENT; APPOINTING AN ESCROW AGENT; AUTHORIZING OTHER ACTIONS IN CONNECTION WITH THE LOAN AND THE REFUNDING PROGRAM;AND PROVIDING FOR AN EFFECTIVE DATE. RECOMMENDATION Adopt the Resolution. ANALYSIS Currently, the City has $19,215,000 outstanding on the $53 million Taxable Special Obligation Refunding Bonds (Pension Funding Project), Series 2005. The City has determined that as a result of the current low interest environment it is financially beneficial to authorize the refunding of the outstanding Pension Bonds. The City's proposed refunding is the result of the Administration's continuous review of opportunities to refund outstanding bonds to ensure the City is paying the lowest possible rate within statutory and tax requirements. In response to a request for proposals from the City, TD Bank, N.A. (the "Bank"), has offered to the City a loan in an aggregate principal amount not to exceed $19,800,000 (the "Loan"). The City has determined that it is in the best interests of the City to undertake the refunding of the outstanding Pension Bonds through the Loan. The City's Financial Advisor, RBC Capital Markets, has determined that the City has the capacity to refinance the Series 2005 Pension Bonds, and that the refunding may provide, as of October 4, 2016, a present value savings of approximately $1,540,000 or approximately 8.02%, which includes conservative estimated costs of issuance of $100,000. The refunding of these bonds does not Page 916 of 1191 extend the term of the bonds beyond their original maturity date of September 1, 2021. The Series 2005 Pension Bonds are currently callable at par without any penalty. The short remaining maturities on the bonds make a taxable bank loan more economical than issuance of publicly offered taxable bonds. This Loan will be a fixed rate loan and payable from a covenant to budget and appropriate from the City's legally available non-ad valorem revenue. The Series 2005 Pension Bonds were also payable from non-ad valorem revenue. The remaining maturities on the Series 2005 Pension Bonds have an interest rate of approximately 5.23% compared to 1.69% offered by the selected financial institution. To evidence its obligation to repay the Loan, the City will execute and deliver to the Bank a Loan Agreement (the "Loan Agreement") and a Taxable Note (the "Note"). As stated above, to repay the Loan, the City will covenant to budget and appropriate Non-Ad Valorem Revenues (as defined in the Loan Agreement), in accordance with and subject to the limitations contained in the Loan Agreement and the Note. In addition, it is found, determined and declared that in accordance with Section 218.385, Florida Statutes, as amended, undertaking the Refunding Program on a negotiated basis through the Loan is in the best interest of the City (rather than a sale through competitive bidding) because it offers (i) borrowing at lower rates than those which the City could command in the market, and (ii) flexibility of financing which could not be obtained in a sale through competitive bidding. The City's officials, officers, attorneys, agents and employees are authorized to do all acts and things and execute and deliver any and all documents necessary by this Resolution, the Loan Agreement, the Note or the Escrow Deposit Agreement, or desirable or consistent with the requirements of this Resolution, the Loan Agreement, the Note or the Escrow Deposit Agreement, in order to obtain the Loan, accomplish the Refunding Program and provide for the full, punctual and complete performance of all the terms, covenants and agreements contained in the Loan Agreement, the Note, the Escrow Deposit Agreement and this Resolution, including the investment of proceeds of the Loan and any other available moneys as may be provided in the Escrow Deposit Agreement. CONCLUSION The Administration recommends that the Mayor and City Commission of the City of Miami Beach, Florida, adopt the attached resolution, authorizing a loan in an aggregate principal amount not to exceed $19,800,000 from TD Bank, N.A, to refund the outstanding Taxable Special Obligation Refunding Bonds (Pension Funding Project), Series 2005; authorizing the execution and delivery of a loan agreement and promissory note to evidence the obligation of the City to repay such loan; providing security for the repayment of the loan; authorizing the refunding, defeasance and redemption of the outstanding pension bonds and the execution and delivery of an escrow deposit agreement; appointing an escrow agent; authorizing other actions in connection with the loan and the refunding program; and providing for an effective date. KEY INTENDED OUTCOMES SUPPORTED Ensure Expenditure Trends Are Sustainable Over The Long Term FINANCIAL INFORMATION The Loan will be paid from the same sources as the Series 2005 Pension Bonds upon refinancing. Page 917 of 1191 Closing costs for this Loan of approximately $100,000 will be paid from the savings from the refinancing of the Series 2005 Pension Bonds to be paid from the following general ledger account: 266-4120-000730-00-408-589-00-00-00- Amount 1 $100,000.00 Account 1 266-4120-000730-00-408-589-00-00-00- Total $100,000 Legislative Tracking Finance ATTACHMENTS: Description ❑ Resolution, Loan Agreement& Escrow Deposit Agreement Page 918 of 1191 EXHIBIT "A" LOAN AGREEMENT . (including Note) A-1 010.8272-6578/2/AMERICAS Page 923 of 1191 LOAN AGREEMENT This LOAN AGREEMENT (the "Agreement") is made and entered into as of December _, 2016 (the "Closing Date"), and is by and between the City of Miami Beach, Florida, a municipal corporation in the State of Florida, and its successors and assigns (the "Borrower"), and TD Bank, N.A., and its successors and assigns, as holder(s) of the hereinafter defined Note (the "Bank"). The parties hereto, intending to be legally bound hereby and in consideration of the mutual covenants hereinafter contained, DO HEREBY AGREE as follows: ARTICLE I DEFINITION OF TERMS Section 1.01. Definitions. The words and terms used in this Agreement shall have the meanings as set forth in the recitals above and the following words and terms as used in this Agreemenfshall have the following meanings: "-A�vance"-has the meaning given such term in the Lines of Credit Agreement. "Agreement" means this Loan Agreement and any and all modifications, alterations, amendments and supplements hereto made in accordance with the provisions hereof. "Authorized Individual"means any one of the individuals identified on Attachment B. "Bond Counsel" means Squire Patton Boggs (US) LLP or such other attorney-at-law or firm of such attorneys having expertise in the legal aspects of the issuance of indebtedness by states and political subdivisions thereof and acceptable to the Bank. "Budgeted Revenues" means the Non-Ad Valorem Revenues budgeted and appropriated pursuant to Section 3.06 hereof. "Business Day" means any day except any Saturday or Sunday or day on which the Principal Office of the Bank is lawfully closed. "Default Rate"has the meaning given to such term in the Note. "Essential Government Services" means the provision of public safety and general governmental services by the Borrower, the expenditures for which are set forth as the line items entitled "General Government Expenditures" and "Public Safety Expenditures" as reflected in the City of Miami Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds and as reported in the City's latest Comprehensive Annual Financial Report. "Event of Default"means an Event of Default specified in Article VI of this Agreement. 010-8272-6424/2/AMERICAS Page 924 of 1191 "Governmental Authority" means the government of the United States of America or any political subdivision thereof or any governmental or quasi-governmental entity, including any court, department, commission, board, bureau, agency, administration, central bank, service, district or other instrumentality of any governmental entity or other entity exercising executive, legislative,judicial, taxing, regulatory, fiscal, monetary or administrative powers or functions of or pertaining to government, or any arbitrator, mediator or other person with authority to bind a party at law. "Lines of Credit Agreement"means the Amended and Restated Loan Agreement dated as of July 29, 2016, by and between the City and Wells Fargo Bank, National Association, or any subsequent line(s) of credit agreements entered into by the City. "Loan" means the loan by the Bank to the Borrower contemplated hereby. "Loan Amount"means $ principal amount. "Maturity Date"means September 1,.2021. "Non-Ad Valorem Revenues" means in any fiscal year of the Borrower, all revenues received by the Borrower in such fiscal year that are not derived from ad valorem taxation. "Note"means the Taxable Note in the form attached hereto as Attachment A. "Notice Address"means, As to the Borrower: As set forth on Attachment B As to the Bank: As set forth on Attachment B or to such other address as either party may have specified in writing to the other using the procedures specified in Section 7.06. "Principal Office" means, with respect to the Bank, the Notice Address, or such other office as the Bank may designate to the Borrower in writing. "Refunded Bonds" means the $19,215,000 outstanding principal amount of City of Miami Beach, Florida Taxable Special Obligation Refunding Bonds (Pension Funding Project), Series 2005. "Refunding Requirements" means the amount necessary to defease and redeem the Refunded Bonds and pay closing costs of the Loan. "Resolution" means Resolution No. 2016- adopted by the Mayor and City Commission of the Borrower.on December_, 2016. "State"means the State of Florida. Section 1.02. Titles and Headings. The titles and headings of the articles and sections of this Agreement have been inserted for convenience of reference only and are not to be 2 010-8272-6424/2/AMERICAS Page 925 of 1191 considered a part hereof, shall not in any way modify or restrict any of the terms and provisions hereof, and shall not be considered or given any effect in construing this Agreement or any provision hereof or in ascertaining intent, if any question of intent should arise. • ARTICLE II REPRESENTATIONS OF BORROWER The Borrower represents and warrants to the Bank that: Section 2.01. Powers of Borrower. The Borrower is a municipal corporation in the State, duly organized and validly existing under the laws of the State. The Borrower has the power to borrow the amount provided for in this Agreement, to execute and deliver the Note and this Agreement, to secure the Note in the manner contemplated hereby and to perform and observe all the terms and conditions of the Note and this Agreement on its part to be performed and observed. The Borrower may lawfully borrow funds hereunder in order to pay the Refunding Requirements. Section 2.02. Authorization of Loan. The Borrower had, has, or will have, as the case may be, at all relevant times, full legal right, power, and authority to execute this Agreement, to make the Note, and to carry out and consummate all other transactions contemplated hereby, and the Borrower has complied and will comply with all provisions of applicable law in all • material matters relating to such transactions. The Borrower has duly authorized the borrowing of the amount provided for in this Agreement, the execution and delivery of this Agreement, and the making and delivery of the Note to the Bank and to that end the Borrower warrants that it will take all action and will do all things which it is authorized by law to take and to do in order to fulfill all covenants on its part to be performed and to provide for and to assure payment of the Note. The Note has been duly authorized, executed, issued and delivered to the Bank and constitutes the legal, valid and binding obligation of the Borrower enforceable in accordance with its terms and the terms hereof, and is entitled to the benefits and security of this Agreement. All approvals, consents, and orders of and filings with any governmental authority or agency which would constitute a condition precedent to the issuance of the Note or the execution and delivery of or the performance by the Borrower of its obligations under this Agreement and the Note have been obtained or made and any consents, approvals, and orders to be received or filings so made are in full force and effect. Section 2.03. No Violation of Law or Contract. The Borrower is not in default in any material respect under any agreement or other instrument to which it is a party or by which it may be bound, the breach of which could result in a material and adverse impact on the financial condition of the Borrower or the ability of the Borrower to perform its obligations hereunder and under the Note. The making and performing by the Borrower of this Agreement and the Note will not violate any applicable provision of law, and will not result in a material breach of any of the terms of any agreement or instrument to which the Borrower is a party or by which the Borrower is bound, the breach of which could result in a material and adverse impact on the financial condition of the Borrower or the ability of the Borrower to perform its obligations hereunder and under the Note. 3 Page 926 of 1191 010-8272-6424/2/AMERICAS Section 2.04. Pending or Threatened Litigation. There are no actions or proceedings pending against the Borrower or affecting the Borrower or, to the knowledge of the Borrower, threatened, which, either in any case or in the aggregate, might result in any material adverse change in the financial condition of the Borrower, or which questions the validity of this Agreement or the Note or of any action taken or to be taken in connection with the transactions contemplated hereby or thereby. Section 2.05. Financial Information. The financial information regarding the Borrower furnished to the Bank by the Borrower in connection with the Loan is accurate, and there has been no material and adverse change in the financial condition of the Borrower from that presented in such information. ARTICLE III COVENANTS OF THE BORROWER Section 3.01. Affirmative Covenants. For so long as any of the principal amount of or _ interest on the Note is outstanding or any duty or obligation of the Borrower hereunder or under the Note remains unsaid or un s erformed the Borrower covenants to the Bank as follows: (a) Payment. The Borrower shall pay the principal of and the interest on the Note at the time and place, and in the manner and from the sources provided herein and in the Note. b ( ) Use of Proceeds. Proceeds from the Note will be used only to pay the Refunding Requirements. (c) Notice of Defaults. The Borrower shall within ten (10) days after it acquires knowledge thereof, notify the Bank in writing at its Notice Address upon the happening, occurrence, or existence of any Event of Default, and any event or condition which with the passage of time or giving of notice, or both, would constitute an Event of Default, and shall provide the Bank with such written notice, a detailed statement by a responsible officer of the Borrower of all relevant facts and the action being taken or proposed to be taken by the Borrower with respect thereto. (d) Maintenance of Existence. The Borrower will take all legal action necessary to maintain its existence until all amounts due and owing from the Borrower to the Bank under this Agreement and the Note have been paid in full. (e) Records. The Borrower agrees that any and all records of the Borrower with respect to the Loan shall be open to inspection by the Bank or its representatives at all reasonable times at the offices the Borrower: (f) Notice of Liabilities. The Borrower shall promptly inform the Bank in writing of any actual or potential contingent liabilities or pending or threatened litigation of any amount that could reasonably be expected to have a material and adverse effect upon the financial condition of the Borrower or upon the ability of the Borrower to perform its obligation hereunder and under the Note. 4 010.8272.6424/2/AMERICAS Page 927 of 1191 (g) Insurance. The Borrower shall maintain such liability, casualty and other insurance as is reasonable and prudent for similarly situated governmental entities of the State of Florida. (h) Compliance with Laws. The Borrower shall comply with all applicable federal, state and local laws and regulatory requirements, the violation of which could reasonably be expected to have a material and adverse effect upon the financial condition of the Borrower or upon the ability of the Borrower to perform its obligation hereunder and under the Note. (i) Payment of Document Taxes. In the event the Note or this Agreement should be subject to the excise tax on documents or the intangible personal property tax of the State, the Borrower shall pay such taxes or reimburse the Bank for any such taxes paid by it. (j) Financial Information. The Borrower will cause an audit to be completed of its books and accounts and shall furnish to the Bank audited year-end financial statements of the Borrower together with a report by an independent certified public accountant acceptable to the Bank stating without qualification unacceptable to the Bank that the audit was conducted in accordance with generally accepted auditing standards and stating that such financial statements present fairly in all material respects the financial position of the Borrower and the results of its operations and cash flows for the periods covered by the audit report, all in conformity with generally accepted accounting principles applied on a consistent basis. The Borrower shall adopt an annual budget as required by law. The Borrower shall make publicly available (i) a copy of its annual operating budget for each fiscal year ending after September 30, 2017 within 60 days after its adoption, and (ii) its audited financial statements described above and its comprehensive annual financial report (if one is prepared by the Borrower) for each fiscal year ending on and after September 30, 2016 within 210 days after the end thereof. (k) Immunity. To the fullest extent permitted by law, the Borrower will not assert any immunity it may have as a public entity under the laws of the State from lawsuits with respect to the Note and this Agreement; provided, however, that nothing contained herein shall be deemed a waiver in any respect to the Borrower's immunity with respect to tort liabilities. • (1) General Obligation Rating. To the-extent the Borrower maintains a credit rating for its general obligation debt from one or more nationally recognized rating agencies, during any period that such rating is below "BBB" or its equivalent (i) from all such rating agencies if the debt is rated by either one or two rating agencies, or(ii) from two or more rating agencies if the debt is rated by more than two rating agencies, the Borrower agrees that the Note shall bear interest at the Default Rate. (m) Auto-Debit. At all times while this Agreement is in effect, loan payments from the Borrower shall be set up on auto debit, which will automatically transfer payments of principal of and interest on the Note held by the Bank on each payment date from an account of the Borrower maintained with a bank selected by the Borrower. Section 3.02. Additional Debt Payable from Non-Ad Valorem Revenues. For so long as any of the principal amount of or interest on the Note is outstanding or any duty or obligation of the Borrower hereunder or under the Note remains unpaid or unperformed, the Borrower 5 010-8272-6424/2/AMERICAS Page 928 of 1191 covenants to the Bank that, without the prior written consent of the Bank, the Borrower shall not hereafter incur any indebtedness payable from any Non-Ad Valorem Revenues (which includes any Advances under the Lines of Credit Agreement), other than any Non-Ad Valorem Revenues accounted for in an enterprise fund under governmental accounting principles ("Enterprise Revenues"), which could, but for such future indebtedness, be lawfully used to pay principal of or interest on the Note (any and all such indebtedness payable from Non-Ad Valorem Revenues, other than Enterprise Revenues, whether now existing or incurred in the future, is referred to as "Competing Debt"), unless (i) the amount of Non-Ad Valorem Revenues, other than Enterprise Revenues, if any, received by the Borrower during the fiscal year of the Borrower most recently concluded prior to the date of the incurrence of such indebtedness for which audited financial statements are available, minus the excess, if any, of the expenditures by the Borrower for Essential Government Services for such fiscal year over the amount of ad valorem taxes (other than any ad valorem taxes levied pursuant to referendum approval by the electorate) received by the Borrower in such fiscal year, equals or exceeds 200% of the maximum amount of principal and interest scheduled to be payable on the Note and all Competing Debt(including the proposed debt) during the then current or any future fiscal year and (ii) an Authorized Individual certifies in writing to.the Bank.that to the best of his or her knowledge no event has occurred -which •- - would cause him or her to believe that the amount of Non-Ad Valorem Revenues, other than any Enter-prise-Revenues, to-be—received-i-n-any-future-f seal-yeas=minus-tl-he-excess;i-f-any, oaf-the expenditures by the Borrower for Essential Government Services for such fiscal year over the amount of ad valorem taxes (other than any ad valorem taxes levied pursuant to referendum approval by the electorate) received by the Borrower in such fiscal year, would be less than 200% of the amount of principal and interest scheduled to be payable on the Note and all Competing Debt during such fiscal year. For purposes of calculating the foregoing, (A) if any indebtedness bears a rate of interest that is not fixed for the entire term of the debt (excluding any provisions that adjust the interest rate upon a change in tax law or in the tax treatment of interest on the debt or upon a default), then the interest rate on such indebtedness shall be assumed to be the highest of(i) to the extent applicable, the average rate of actual interest borne by such indebtedness during the most recent complete month prior to the date of issuance of such proposed indebtedness, (ii) for tax-exempt debt, The Bond Buyer Revenue Bond Index last-.,published in the month_preceding_the date .. issuance of such proposed indebtedness plus one percent, (iii) for taxable debt, the yield on a U.S. Treasury obligation with a constant maturity closest to but not before the maturity date of such indebtedness, as reported in Statistical Release H.15 of the Federal Reserve on the last day of the month preceding the date of issuance of such proposed indebtedness, plus three percent, provided that if the Borrower shall have entered into an interest rate swap or interest rate cap or shall have taken any other action which has the effect of fixing or capping the interest rate on such indebtedness for the entire term thereof, then such fixed or capped rate shall be used as the applicable rate for the period of such swap or cap, and provided further that if The Bond Buyer Revenue Bond Index or Statistical Release H.15 of the Federal Reserve is no longer available or no longer contains the necessary data, such other comparable source of comparable data as selected by the Bank shall be utilized in the foregoing calculations; (B) any Advances under the Lines of Credit Agreement shall be assumed to be payable over ten years on a level debt service basis; and (C) with respect to all Advances under the Lines of Credit Agreement, the above requirements may be satisfied by a certification delivered to the Bank at the time of any Advance 6 010-8272-6424/2/AMERICAS Page 929 of 1191 to the extent such certification assumes that the full loan amount under the Lines of Credit Agreement has been borrowed at the time of such.Advance. Nothing in this Agreement limits the Borrower's ability to incur indebtedness payable from Enterprise Revenues. Section 3.03. Bank Counsel Fees and Expenses. The Borrower hereby agrees to pay the fee and expenses of counsel to the Bank in connection with the issuance of the Note in the amount of$5,000.00, said amount to be due and payable upon the execution and delivery of this Agreement. Section 3.04. Registration and Exchange of Note; Persons Treated as Banks. The Note is owned by the Bank. The ownership of the Note may only be transferred, and the Borrower will transfer the ownership of the Note, upon written request of the Bank specifying the name, address and taxpayer identification number of the transferee, and the Borrower will keep a record setting forth the identification of the owner of the Note. The Bank will not transfer the Note except in compliance with all applicable laws. Section 3.05. Note Mutilated, Destroyed, Stolen or Lost. In case the Note shall become mutilated, or be destroyed, stolen or lost, the Borrower shall issue and deliver a new Note having the same terms as the Note, in exchange and in substitution for such mutilated Note, or in lieu of and in substitution for the Note destroyed, stolen or lost and upon the Bank furnishing the Borrower proof of ownership thereof and indemnity reasonably satisfactory to the Borrower and paying such expenses as the Borrower may incur. Section 3.06. Payment of Principal and Interest; Limited Obligation. The Borrower promises that it will promptly pay the principal of and interest on the Note at the place, on the dates and in the manner provided therein, provided that the Borrower may be compelled to pay the principal of and interest on the Note solely from the Non-Ad Valorem Revenues budgeted and appropriated for such purpose as provided herein, and nothing in the Note or this Agreement shall be construed as pledging any other fiends or assets of the Borrower to such payment. Nothing herein shall, however, prevent the Borrower from using any lawfully available funds to - _ p a ..its obligations-hereunder-and under the Note The City P edge s and �`ants alien-oh the Budgeted Revenues to secure the City's payment obligations hereunder and under the Note. Except with respect to the Budgeted Revenues, the covenant to budget and appropriate does not create a lien upon or pledge of the Non-Ad Valorem Revenues nor does it preclude the Borrower from pledging its Non-Ad Valorem Revenues. Such covenant to budget and appropriate Non-Ad Valorem Revenues 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 bonds and other instruments). The Borrower is not and shall not be liable for the payment of the principal of and interest on the Note or for the performance of any pledge, obligation or agreement for payment undertaken by the Borrower hereunder or under the Note from any property other than the Budgeted Revenues. The Bank shall not have any right to resort to legal or equitable action to require or compel the Borrower to make any payment required by the Note or this Loan Agreement from any source other than the Budgeted Revenues. 7 010-8272-6424/2/AMERICAS Page 930 of 1191 Subject to the provisions of this Section 3.06, the Borrower covenants that, so long as the Note shall remain unpaid or any other amounts are owed by the Borrower under this Agreement or the Note, it will budget and appropriate in its annual budget, by amendment, if required, from the Non-Ad Valorem Revenues, amounts sufficient to pay the principal of and interest on the Note and other amounts owed under this Agreement as the same shall become due. In the event that the amount previously budgeted for such purpose is ever insufficient to pay such principal and interest on the Note and other amounts owed under this Agreement, the Borrower covenants to take immediate action to amend its budget so as to budget and appropriate an amount from the Non-Ad Valorem Revenues sufficient to pay such debt service on the Note and such other amounts. Such covenant to budget and appropriate from Non-Ad Valorem Revenues shall be cumulative to the extent not paid and shall continue until such Non-Ad Valorem Revenues sufficient to make all required payments have been budgeted, appropriated and used to pay such debt service on the Note and such other amounts. The Bank and the Borrower acknowledge the existence of Section 166.241, Florida Statutes, which prescribes the budgetary process of the Borrower and which prohibits any expenditure or contractual obligation therefor from being made or incurred except in pursuance of budgeted appropriations. Notwithstanding any provisions of this Agreement to the contrary, the Borrower shall not be-ob l-i gated-to-mai ntain-or-continue-any-o-f-the activities-of the-Bo-r o--wer—which generate-Non Ad Valorem Revenues. In addition, in any fiscal year of the Borrower, the Borrower may pay or make provision for payment of the expenses of providing Essential Government Services of the Borrower due or coming due in such fiscal year from Non-Ad Valorem Revenues prior to being required to use any Non-Ad valorem Revenues to pay amounts due hereunder and under the Note. Any Non-Ad Valorem Revenues which are restricted by contract or prohibited by a general or special law of the State from being used to pay principal and interest on the Note shall not be subject to the covenant to budget and appropriate. The covenant to budget and appropriate Non-Ad Valorem Revenues contained in this Section 3.06 shall be on a parity with the Borrower's covenant to budget and appropriate Non- Ad Valorem Revenues with respect to any other indebtedness, with no preference being given to any particular issuance. Section 3.07. Officers and Employees of the Borrower Exempt from Personal Liability. No recourse under or upon any obligation, covenant or agreement of this Loan Agreement or the Note or for any claim based hereon or thereon or otherwise in respect thereof; shall be had against any officer (which includes elected and appointed officials), agent or employee, as such, of the Borrower past, present or future, it being expressly understood (a) that the obligation of the Borrower under this Agreement and under the Note is solely a corporate one, limited as provided in the preceding Section 3.06, (b) that no personal liability whatsoever shall attach to, or is or shall be incurred by, the officers, agents, or employees, as such, of the Borrower, or any of them, under or by reason of the obligations, covenants or agreements contained in this Agreement or implied therefrom, and (c) that any and all such personal liability of, and any and all such rights and claims against, every such officer, agent, or employee, as such, of the Borrower under or by reason of the obligations, covenants or agreements contained in this Agreement and under the Note, or implied therefrom, are waived and released as a condition of, 8 010-8272-6424/2/AMERICAS Page 931 of 1191 and as a consideration for, the execution of this Agreement and the issuance of the Note on the part of the Borrower. Section 3.08. Business Days. In any case where the due date of interest on or principal of the Note is not a Business Day, then payment of such principal or interest need not be made on such date but may be made on the next succeeding Business Day, provided that credit for payments made shall not be given until the payment is actually received by the Bank. ARTICLE IV CONDITIONS OF LENDING The obligations of the Bank to lend'hereunder are subject to the following conditions precedent: Section 4.01. Representations and Warranties. The representations and warranties set forth in this Agreement and the Note are and shall he true and correct on and as of the date hereof. - Section 4.02. No Default. On the date hereof the Borrower shall be in compliance with all the terms and provisions set forth in this Agreement and the Note on its part to be observed or performed, and no Event of Default nor any event that, upon notice or lapse of time or both, would constitute such an Event of Default, shall have occurred and be continuing at such time. - - Section-4.03. -Supporting Documents. On or prior to the date hereof, the Bank shall have - received the following supporting documents, all of which shall be satisfactory in form and substance to the Bank (such satisfaction to be evidenced by the purchase of the Note by the Bank): (a) The opinion of the City Attorney of the Borrower regarding the due authorization, execution, delivery, validity and enforceability of this Agreement and the Note; (b.) The_opinion_of_B.ond_Counsel_regarding_the_validity_and_enforceability_of_the --.-.-. Agreement and the Note and the exemption of the Note from certain taxes imposed under the laws of the State; (c) The opinion of Bond Counsel regarding the defeasance of the Refunded Bonds; and (d) Such additional supporting documents as the Bank may reasonably request. ARTICLE V THE LOAN Section 5.01. The Loan. The Bank hereby agrees to loan to the Borrower the amount of the Loan Amount to be evidenced by the Note to provide funds to finance the Refunding Requirements upon the terms and conditions set forth in this Agreement and the Note. The 9 010-8272-6424/2/AMERICAS Page 932 of 1191 proceeds of the Loan shall be applied as provided in a certificate of an Authorized Individual. The Borrower agrees to repay the principal amount borrowed plus interest thereon, upon the terms and conditions set forth in this Agreement and the Note. Section 5.02. Description and Payment Terms of the Note. To evidence the Loan, the Borrower shall issue and deliver to the Bank the Note in the form attached hereto as Attachment A. ARTICLE VI EVENTS OF DEFAULT Section 6.01. General. An "Event of Default" shall be deemed to have occurred under this Agreement if: (a) The Borrower shall fail to make any payment of(i) the principal of or interest on the Loan when the same shall become due and payable, or (ii) any other amount payable hereunder*hen the same shall be due and payable and such failure shall continue for a period of twenty(20) days; or (b) The Borrower does not comply with Section 3.01(c), (d), (e), (f) or (j) or Section 3.02; or (c) The Borrower shall default in the performance of or compliance with any term or l - - - covenant contained in-this-Agreement-and-the-Notes other-than-a-term-or-covenant-a-default--in the- -- performance of which or noncompliance with which is elsewhere specifically dealt with, which default or non-compliance shall continue and not be cured within thirty(30) days after(i) written notice thereof to the Borrower by the Bank, or(ii) the Bank is notified of such noncompliance or should have been so notified pursuant to the provisions of Section 3.01(c) of this Agreement, whichever is earlier; provided, however, that such continued breach shall not be an Event of Default at the end of such thirty (30) day period, so long as (i) such breach is, in the sole judgment of the Bank, capable of cure; (ii) the Borrower is proceeding diligently to cure such - — breach and-(iii)-such-breach,—in-any--eventTis-cured-within-one-hundred twenty (10) days-off— -- such written notification by the Bank; or (d) Any representation or warranty made in writing by or on behalf of the Borrower in this Agreement or the Note shall prove to have been false or incorrect in any material respect on the date made or reaffirmed; or (e) The Borrower admits in writing its inability to pay its debts generally as they become due or files a petition in bankruptcy or makes an assignment for the benefit of its creditors or consents to the appointment of a receiver or trustee for itself; or (f) The Borrower is adjudged insolvent by a court of competent jurisdiction, or it is adjudged a bankrupt on a petition in bankruptcy filed by or against the Borrower, or an order, judgment or decree is entered by any court of competent jurisdiction appointing, without the consent of the Borrower, a receiver or trustee of the Borrower or of the whole or any part of its 10 010-8272-6424/2/AMERICAS Page 933 of 1191 property, and if the aforesaid adjudications, orders,judgments or decrees shall not be vacated or set aside or stayed within ninety(90) days from the date of entry thereof; or (g) The Borrower shall file a petition or answer seeking reorganization or any arrangement under the federal bankruptcy laws or any other applicable law or statute of the United States of America or the State; or (h) The Borrower shall default in the due and punctual payment or performance of covenants related to any other obligation for the payment of money to the Bank or any other subsidiary or affiliate of any bank holding company of which the Bank is a subsidiary; or (i) The Borrower shall default in the due and punctual payment of any Competing Debt or an event of default exists with respect to any Competing Debt which results in the acceleration of the time for payment of such debt or entitles the holder of such Competing Debt to accelerate the time for payment of such debt; or (j) A debt moratorium, debt restructuring, debt adjustment or comparable restriction is imposed on the repayment when due and payable of the principal of or interest on any debt of the Borrower by the Borrower or any Governmental Authority with appropriate jurisdiction; or (k) Any material provision of this Agreement, the Note or the Resolution shall at any time for any reason cease to be valid and binding on the Borrower as a result of any legislative or administrative action by a Governmental Authority with competent jurisdiction or shall be declared in a final non-appealable judgment by any court with competent jurisdiction to be null and -void invalid,-or -unenforceable; or-the-validity or-enforceability-thereof-shall-be-publicly • contested by the Borrower. Section 6.02. Effect of Event of Default. Except as otherwise provided in the Note, immediately and without notice, upon the occurrence of any Event of Default, the Bank may declare all obligations of the Borrower under this Agreement and the Note to be immediately due and payable without further action of any kind-and--upon-such-declaration-the Note-and-the-interest-accrued--thereon=shall-become immediately due and payable. In addition, and regardless whether such declaration is or is not made, all amounts due and payable hereunder and the Note shall bear interest at the Default Rate and may also seek enforcement of and exercise all remedies available to it under any applicable law. ARTICLE VII MISCELLANEOUS Section 7.01. No Waiver; Cumulative Remedies. No failure or delay on the part of the Bank in exercising any right, power, remedy hereunder or under the Note shall operate as a waiver of the Bank's rights, powers and remedies hereunder, nor shall any single or partial exercise of any such right,power or remedy preclude any other or further exercise thereof, or the exercise of any other right, power or remedy hereunder or thereunder. The remedies herein and therein provided are cumulative and not exclusive of any remedies provided by law or in equity. 11 010-8272-8424/2/AMERICAS Page 934 of 1191 Section 7.02. Amendments, Changes or Modifications to the Agreement. This Agreement and the Note shall not be amended, changed or modified except in writing signed by the Bank and the Borrower. The Borrower agrees to pay all of the Bank's costs and reasonable attorneys' fees incurred in modifying and/or amending this Agreement at the Borrower's request or behest. Section 7.03. Counterparts. This Agreement may be executed in any number of counterparts, each of which, when so executed and delivered, shall be an original; but such counterparts shall together constitute but one and the same Agreement, and, in making proof of this Agreement, it shall not be necessary to produce or account for more than one such counterpart. Section 7.04. Severability. If any clause, provision or section of this Agreement shall be held illegal or invalid by any court, the invalidity of such clause, provision or section shall not affect any other provisions or sections hereof, and this Agreement shall be construed and enforced to the end that the transactions contemplated hereby be effected and the obligations contemplated hereby be_enforced, as if such illegal or invalid clause, provision or section had not _ been contained herein. Section 7.05. Term of Agreement. Except as otherwise specified in this Agreement, this Agreement and all representations, warranties, covenants and agreements contained herein or made in writing by the Borrower in connection herewith shall be in full force and effect from the date hereof and shall continue in effect as long as the Note is outstanding. Section 7.06.. NDtk-e—All nottees, requests demands–a dither communications which are required or may be given under this Agreement shall be in writing and shall be deemed to have been duly given when received if personally delivered; when transmitted if transmitted by telecopy, electronic telephone line facsimile transmission or other similar electronic or digital transmission method (provided customary evidence of receipt is obtained); the day after it is sent, if sent by overnight common carrier service; and five days after it is sent, if mailed, certified mail, return receipt requested, postage prepaid. In each case notice shall be sent to the Notice Address. Section 7.07. Applicable Law; Venue. This Agreement shall be construed pursuant to and governed by the substantive laws of the State. The parties waive any objection to venue in any judicial proceeding brought in connection herewith lying in Miami-Dade County, Florida. Section 7.08. Binding Effect; Assignment. This Agreement shall be binding upon and inure to the benefit of the successors in interest and permitted assigns of the parties. The Borrower shall have no rights to assign any of its rights or obligations hereunder without the prior written consent of the Bank. Section 7.09. No Third Party Beneficiaries. It is the intent and agreement of the parties hereto that this Agreement is solely for the benefit of the parties hereto and no person not a party hereto shall have any rights or privileges hereunder. Section 7.10. Attorneys Fees. To the extent legally permissible, the Borrower and the Bank agree that in any suit, action or proceeding brought in connection with this Agreement or 12 010-8272-6424/2/AMERICAS Page 935 of 1191 • the Note (including any appeal(s)), the prevailing party shall be entitled to recover costs and attorneys' fees from the other party. Section 7.11. Entire Agreement. Except as otherwise expressly provided, this Agreement and the Note embody the entire agreement and understanding between the parties hereto and supersede all prior agreements and understandings relating to the subject matter hereof. Attachments A and B hereto are a part hereof. Section 7.12. Further Assurances. The parties to this Agreement will execute and deliver, or cause to be executed and delivered, such additional or further documents, agreements • or instruments and shall cooperate with one another in all respects for the purpose of out the transactions contemplated by this Agreement. Section 7.13. Waiver of Jury Trial. This Section 7.13 concerns the resolution of any controversies or claims between the Borrower and the Bank, whether arising in contract, tort or by statute, that arise out of or relate to this Agreement or the Note (collectively a"Claim"). The parties irrevocably and voluntarily waive any right they may have to a trial by jury in respect of any Claim. This provision is a material inducement for the parties entering into this Agreement. Section 7.14. Patriot Act.. The Bank hereby notifies the Borrower that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), it is required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow the Bank to identify the Borrower in accordance with such Act. • 13 010-8272-6424/2/AMERICAS Page 936 of 1191 IN WITNESS WHEREOF, the parties have executed this Agreement to be effective between them as of the date of first set forth above. CITY OF MIAMI BEACH,FLORIDA By: Name: Philip Levine Title: Mayor Attest By: Name: Rafael E. Granado Title: City Clerk TD BANK,N.A. By: Name: Delle Joseph Title: Senior Vice President APPROVED AS TO FORM &LANGUAGE &FOR EXECUTION 1� Y` City Attorney iz,..0) Date 14 010-8272-6424/2/AMERICAS Page 937 of 1191 ATTACHMENT A TAXABLE PROMISSORY NOTE KNOW ALL MEN BY THESE PRESENTS that the undersigned maker(the "Borrower"), a municipal corporation created and existing pursuant to the Constitution and the laws of the State of Florida, for value received; promises to pay from the sources hereinafter provided, to the order of TD Bank, N.A., or registered assigns (hereinafter, the"Bank"), the principal sum of$ together with interest on the principal balance outstanding at the rate per annum equal to 1.69% computed based upon a 360-day year of twelve 30-day months. Principal of and interest on this Note are payable in immediately available funds constituting lawful money of the United States of America at such place as the Bank may designate to the Borrower. The Borrower shall pay the Bank interest hereon in arrears on March 1 and September 1 of each year, conunencing on March 1, 2017, and principal hereon as set forth in Schedule A attached hereto. All payments by the Borrower pursuant to this Note shall apply first to accrued interest and the balance thereof shall apply to the principal sum due. If any payment due the Bank is more than 15 days overdue, a late charge equal to 6% of the overdue payment shall be due and payable. The-principal-of-and-interest on-this-Note-may-be-prepaid-atthe-option-of-the-Borrower,-in whole or in part, at any time, with a prepayment fee equal to the greater of(i) 1.00%of the''principal balance multiplied by the number of remaining years, or (ii) a "Yield Maintenance Fee" in an amount computed as follows: The current cost of funds, specifically the bond equivalent yield for United States Treasury Securities (bills on a discounted basis shall be converted to a bond equivalent yield)with a maturity date closest to the Remaining Term (as defined below), shall be subtracted from the Note interest rateor-Default Rate-(as defined-below)-if-applicable—If-the-result:is-zero-or-a..negative-number, - -there shall be no Yield Maintenance Fee due and payable. If the result is a positive number, then the resulting percentage shall be multiplied by the scheduled outstanding principal balance for each remaining monthly period of the Remaining Term. Each resulting amount shall be divided by 360 and multiplied by the number of days in the monthly period. Said amounts shall be reduced to present values calculated by using the above reference current cost of funds divided by 12. The resulting sum of present values shall be the Yield Maintenance Fee due the Bank upon prepayment of the principal of the Note plus any accrued interest due as of the prepayment date. "Remaining Term" as used herein shall mean the remaining term of the Note. Upon the occurrence of an Event of Default (as defined in the Loan Agreement), the Bank may declare the entire debt then remaining unpaid hereunder immediately due and payable; and in any such default and acceleration, the Borrower shall also be obligated to pay (but only from the Budgeted Revenues) as part of the indebtedness evidenced by this Note, all costs of collection and enforcement hereof, including such fees as may be incurred on appeal or incurred in any proceeding A-1 Page 938 of 1191 010-827.2-B424/2/AMERICAS under bankruptcy laws as they now or hereafter exist, including specifically but without limitation, claims, disputes and proceedings seeking adequate protection or relief from the automatic stay. Upon the occurrence of an Event of Default or during any period described in Section 3.01(1) of the Loan Agreement, the Note shall bear interest at the Default Rate. For purposes of this Note, "Default Rate"means the Prime Rate plus 6% but not to exceed the maximum rate permitted by law. "Prime Rate" means the rate published from time to time in The Wall Street Journal as the "U.S. Prime Rate" or, in the event The Wall Street Journal ceases to be published, goes on strike, is otherwise not published or ceases publication of "Prime Rates," the base, reference or other rate then designated by the Bank, in its sole discretion, for general commercial loan reference. The Prime Rate is not necessarily the lowest or best rate of interest offered by the Bank to any borrower or class of borrowers. The Borrower to the extent permitted by law hereby waives presentment, demand, protest and notice of dishonor. THIS NOTE AND THE INTEREST HEREON DOES NOT AND SHALL NOT CONSTITUTE A GENERAL INDEBTEDNESS OF THE BORROWER BUT SHALL BE PAYABLE SOLELY FROM THE MONEYS AND SOURCES DESIGNATED THEREFOR PURSUANT TO THE LOAN AGREEMENT. NEITHER THE FAITH AND CREDIT NOR ANY AD VALOREM TAXING POWER OF THE BORROWER IS PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF OR INTEREST ON THIS NOTE OR OTHER COSTS INCIDENTAL HERETO. This Note is issued in conjunction with a Loan Agreement, dated of even date herewith between the Borrower and the Bank (the "Loan Agreement") and is subject to all the terms and conditions of the Loan Agreement. All terms, conditions and provisions of the Loan Agreement and Resolution No. 2016- adopted by the Mayor and City Commission of the Borrower are by this reference thereto incorporated herein as a part of this Note. Terms used herein in capitalized form and not otherwise defined herein shall have the meanings ascribed thereto in the --- Loan Agreement. This Note is payable solely from and is secured by a lien upon and pledge of the"Budgeted Revenues" as described in the Loan Agreement. Notwithstanding any other provision of this Note, the Borrower is not and shall not be liable for the payment of the principal of and interest on this Note or otherwise monetarily liable in connection herewith from any property other than the Budgeted Revenues. This Note may be exchanged or transferred but only as provided in the Loan Agreement. It is hereby certified, recited and declared that all acts, conditions and prerequisites required to exist, happen and be performed precedent to and in the execution, delivery and the issuance of this Note do exist, have happened and have been performed in due time, form and manner as required by law, and that the issuance of this Note is in full compliance with and does not exceed or violate any constitutional or statutory limitation. A-2 010-8272-6424/2/AMERICAS Page 939 of 1191 IN WITNESS WHEREOF, the Borrower has caused this Note to be executed in its name as of the date hereinafter set forth. The date of this Taxable Promissory Note is December_, 2016. CITY OF MIAMI BEACH, FLORIDA By: Name: Philip Levine Title: Mayor A-3 010-8272-6424/2/AMERICAS Page 940 of 1191 SCHEDULE A Date Principal September 1,2017 $ September 1, 2018 September 1, 2019 September 1, 2020 September 1, 2021 is 010-8272-6424/2/AMERICAS Page 941 of 1191 ATTACHMENT B • 1. Authorized Individual(s): Allison R. Williams, Chief Financial Officer Juan Rodriguez,Treasury and Debt Manager 2. Notice Address of Borrower: City of Miami Beach, Florida 1700 Convention Center Drive 3`d Floor Miami Beach, Florida 33139 Attention: Chief Financial Officer 3. Notice Address of Bank: TD Bank, N.A. 255 Alhambra Circle 2nd Floor Coral Gables, Florida 33134 Attention: Delle Joseph, Senior Vice President B-1 010-8272-6424/2/AMERICAS Page 942 of 1191 EXHIBIT "B" ESCROW DEPOSIT AGREEMENT B-1 Page 943 of 1191 010-8272-6578/2/AMERICAS CITY OF MIAMI BEACH, FLORIDA and U7SBAI-K-NATIONAL-A�OCeIA1 PION, 1 AS ESCROW AGENT ESCROW DEPOSIT AGREEMENT relating to TAXABLE SPECIAL OBLIGATION REFUNDING BONDS (PENSION FUNDING PROJECT), SERIES 2005 DA'Z'ED AS OF DECEMBER Page 944 of 1191 010-8278.5795/2/AMERICAS ESCROW DEPOSIT AGREEMENT THIS ESCROW DEPOSIT AGREEMENT (the "Agreement") made and entered into as of December_, 2016, by and between the CITY OF MIAMI BEACH, FLORIDA (the "City") and U.S. BANK NATIONAL ASSOCIATION, as Escrow Agent(the"Escrow Agent"). WITNESSETH: WHEREAS, the City has heretofore issued its $53,030,000 aggregate principal amount of City of Miami Beach, Florida Taxable Special Obligation Refunding Bonds (Pension Funding Project), Series 2005, dated September 1, 2005, presently outstanding in the principal amount of $19,215,000 (the "Outstanding Series 2005 Bonds"), pursuant to the provisions of Resolution No. 2005-25951 adopted by the Mayor and City Commission of the City(the "Commission") on July 6, 2005 (the"Prior Bond Resolution"); and WHEREAS, the City desires to refund and defease all of the Outstanding Series 2005 Bonds (the "Refunded Bonds"), as more particularly described in Schedule A attached hereto and made a part hereof., and WHEREAS, the City has issued a Taxable Note to TD Bank, N.A., in the aggregate principal amount of$ (the "Note"), pursuant to the provisions of Resolution No. 2016- adopted by the Commission on December _, 2016, a portion of the proceeds of which Note is to be deposited with the Escrow Agent to provide, with investment earnings j thereon;for-the-refunding, defeasance-and-redemption-of-theRefunded-Bonds and WHEREAS, a portion of the proceeds derived from the sale of the Note will be applied to the purchase of Government Obligations (as such term is hereinafter defined), which will mature and produce investment income and earnings at such time and in such amount as will be sufficient, together with certain moneys remaining uninvested, to pay upon the redemption thereof,the principal of and interest on the Refunded Bonds as more specifically set forth herein; and WHEREAS, in order to provide for the proper and timely application of the moneys deposited hereunder, the maturing principal amount of the Government Obligations purchased therewith, and investment income and earnings derived therefrom to the payment of the Refunded Bonds, it is necessary for the City to enter into this Agreement with the Escrow Agent; NOW, THEREFORE, the City and the Escrow Agent, in consideration of the foregoing and the mutual covenants herein set forth and in order to secure the payment of the principal of and interest on all of the Refunded Bonds according to their tenor and effect, do hereby agree as follows: Page 945 of 1191 010-8278-5795/2/AMERICAS ARTICLE I CREATION AND CONVEYANCE OF TRUST ESTATE Section 1.01. Creation and Conveyance of Trust Estate. The City hereby grants, warrants, remises, releases, conveys, assigns, transfers, aliens, pledges, sets over and confirms unto the Escrow Agent and to its successors in the trust hereby created, and to it and its assigns forever, all and singular the property hereinafter described, to wit: DIVISION I All right, title and interest in and to $ in moneys deposited directly with the Escrow Agent and derived from the proceeds of the Note upon issuance and delivery of the Note and execution of and delivery of this Agreement. DIVISION II All right, title and interest in and to the Government Obligations described in Schedule B attached hereto and made a part hereof, together with the income and earnings thereon. DIVISION III Any and all other property of every kind and nature from time to time hereafter, by delivery or by writing of any kind, conveyed, pledged, assigned or transferred as and for additional_security hereunder_hy_the_City,_orb_y_anyone_on-behalf-of-the-City-to-the Escrow - - - Agent for the benefit of the Refunded Bonds. DIVISION IV All property which is by the express provisions of this Agreement required to be subject to the pledge hereof and any additional property that may, from time to time hereafter, by delivery or by writing of any kind, by the City, or by anyone on its behalf; be subject to the pledge hereof. TO HAVE AND TO HOLD, all and singular, the Trust Estate(as such term is hereinafter defined), including all additional property which by the terms hereof has or may become subject to the encumbrances of this Agreement, unto the Escrow Agent, and its successors and assigns, forever in trust, however, for the sole benefit and security of the holders from time to time of the Refunded Bonds, but if the principal of and interest on all of the Refunded Bonds shall be fully and promptly paid upon the redemption thereof, in accordance with the terms thereof, then this Agreement shall be and become void and of no further force and effect except as otherwise provided herein; otherwise the same shall remain in full force and effect, and upon the trusts and subject to the covenants and conditions hereinafter set forth. 2 Page 946 of 1191 010-8278-579S/2/AMERICAS ARTICLE II DEFINITIONS Section 2.01. Definitions. In addition to words and terms elsewhere defined in this Agreement, the following words and terms as used in this Agreement shall have the following meanings, unless some other meaning is plainly intended. Capitalized terms not otherwise defined in this Agreement shall have the meanings given to such terms in the Prior Bond Resolution. "Government Obligations" shall mean Defeasance Obligations (as defined in the Prior Bond Resolution) which are not subject to redemption prior to maturity. "Trust Estate," "trust estate" or "pledged property" shall mean the property, rights and interests described or referred to under Divisions I, II, III and IV in Article I above. Words of the masculine gender shall be deemed and construed to include correlative words of the feminine and neuter genders. Words importing the singular number shall include the plural number and vice versa unless the context shall otherwise indicate. The word "person" shall include corporations, associations, natural persons and public bodies unless the context shall otherwise indicate. Reference to a person other than a natural person shall include its successors. ARTICLE III ESTABLISHMENT OF ESCROW DEPOSIT TRUST FUND; FLOW OF FUNDS Section 3.01. Creation of Escrow Deposit Trust Fund and Deposit of Moneys. There is hereby created and established with the Escrow Agent a special and irrevocable trust fund designated "City of Miami Beach, Florida Taxable Special Obligation Refunding Bonds (Pension Funding Project), Series 2005 Escrow Deposit Trust Fund" (the "Escrow Deposit Trust Fund"), to be held by the Escrow Agent for the sole benefit of the holders of the Refunded Bonds and accounted for separate and apart from the other funds of the City and, to the extent required by law, of the Escrow Agent. Concurrently with the delivery of this Agreement, the City herewith causes to be deposited with the Escrow Agent and the Escrow Agent acknowledges receipt of immediately available moneys for deposit in the Escrow Deposit Trust Fund in the amount of$ consisting of proceeds of the Note, which, when invested in Government Obligations (other than $ to be held uninvested), will provide moneys sufficient to pay the principal of and interest on the Refunded Bonds, upon redemption thereof, as more particularly described in Schedule C attached hereto and made a part hereof. Section 3.02. Payment of Refunded Bonds. The Bond proceeds received by the Escrow Agent will be sufficient to purchase $ par amount of Government Obligations, all as listed in Schedule B attached hereto and made a part hereof, which will mature in principal amounts and earn income at such times so that sufficient moneys will be available to pay as the 3 Page 947 of 010-8278-5795/2/AMERICAS 1191 same are redeemed all principal of and interest on the Refunded Bonds. Notwithstanding the foregoing, if the amounts deposited in the Escrow Deposit Trust Fund are insufficient to make said payments of principal and interest, the City shall cause to be deposited into the Escrow Deposit Trust Fund the amount of any deficiency immediately upon notice from the Escrow Agent. Section 3.03. Irrevocable Trust Created. The deposit of moneys and Government Obligations or other property hereunder in the Escrow Deposit Trust Fund shall constitute an irrevocable deposit of said moneys and Government Obligations and other property hereunder for the sole benefit of the holders of the Refunded Bonds, subject to the provisions of this Agreement. The holders of the Refunded Bonds, subject to the provisions of this Agreement, shall have an express lien on all moneys and principal of and earnings on the Government Obligations and other property in the Escrow Deposit Trust Fund. The moneys deposited in the Escrow Deposit Trust Fund and the matured principal of the Government Obligations and other property hereunder and the interest thereon shall be held in trust by the Escrow Agent, and shall be applied for the payment of Refunded Bonds, as more specifically set forth in Schedule C hereto. SeGtion_3.94. Purchase of C;overnment_Ohligations. The Escrow Agent is hereby directed immediately to purchase the Government Obligations listed in Schedule B from the proceeds of the Note described in Sections 3.01 and 3.02 hereof. The Escrow Agent shall purchase the Government Obligations solely from the moneys deposited in the Escrow Deposit Trust Fund as provided in this Agreement. The Escrow Agent shall-apply the moneys deposited ih t--ie-Escrow Depesit Trust Fluid and the Government Obligations purchased therewith, together with all income or earnings thereon, in accordance with the provisions hereof The Escrow Agent shall have no power or duty to invest any moneys held hereunder or to make substitutions of the Government Obligations held hereunder or to sell, transfer or otherwise dispose of the Government Obligations held hereunder except as provided in this Agreement. The Escrow Agent is hereby directed not to invest $ _deposited in the Escrow Deposit Trust Fund simultaneously with the delivery of this Agreement. Section 3.05. Substitution of Certain Government Obligations. (a) If so directed in writing by the City on the date of delivery of this Agreement, the Escrow Agent shall accept in substitution for all or a portion of the Government Obligations listed in Schedule B, Government Obligations (the "Substituted Securities"), the principal of and interest on which, together with any Government Obligations listed in Schedule B for which no substitution is made and moneys held uninvested by the Escrow Agent, will be sufficient to pay all principal of and interest of the Refunded Bonds as set forth in Schedule C hereof The foregoing notwithstanding, the substitution of Substituted Securities for any of the Government Obligations listed in Schedule B may be effected only upon compliance with Section 3.05(b)(1) and (2)below. (b) If so directed in writing by the City at any time during the term of this Agreement, the Escrow Agent shall sell, transfer, exchange or otherwise dispose of, or request the redemption of all or a portion of the Government Obligations then held in the Escrow 4 Page 948 of 1191 010-8278.5795/2/AMERICAS Deposit Trust Fund and shall substitute for such Government Obligations other Government Obligations, designated by the City, and acquired by the Escrow Agent with the proceeds derived from the sale, transfer, disposition or redemption of or by the exchange of such Government Obligations held in the Escrow Deposit Trust Fund, but only upon the receipt by the Escrow Agent of: (1) an opinion of nationally recognized counsel in the field of law relating to municipal bonds stating that such substitution is not inconsistent with the statutes and regulations applicable to the Refunded Bonds and the Note; and (2) verification by a firm of independent certified public accountants stating that the principal of and interest on the substituted Government Obligations, together with any Government Obligations and any uninvested moneys remaining in the Escrow Deposit Trust Fund will be sufficient, without reinvestment, to pay the remaining principal of and interest on the Refunded Bonds as set forth in Schedule C hereof. Any moneys resulting from the sale, transfer, disposition or redemption of the Government Obligations held hereunder and the substitution therefor of other Government Obligations not required to be applied for the payment of such principal of and interest on the Refunded Bonds (as shown in the verification report described in Section 3.05(b)(2) hereof delivered in connection with such substitution), shall be released to the City. Upon any such substitution of Government Obligations pursuant to Section 3.05, Schedule B hereto shall be appropriately amended to reflect such substitution. The EgcrowAgent may rely on all specific directions in this Agreement providing for the investment or reinvestment of the Escrow Deposit Trust Fund. Section 3.06. Transfers from Escrow Deposit Trust Fund. As the principal of the Government Obligations set forth in Schedule B shall mature and be paid, and the investment income and earnings thereon are paid, the Escrow Agent, in its capacity of Bond Registrar with respect to the Refunded Bonds (the "Refunded Bonds Bond Registrar"), shall, no later than the payment date for the Refunded Bonds, as specified in Schedule C hereof, pay from such moneys the principal of and interest on the Refunded Bonds, as specified in Schedule C hereof. The City hereby irrevocably determines, and instructs the Refunded Bonds Bond Registrar and the Escrow Agent, to call for redemption prior to maturity, pursuant to their optional redemption provisions, the Refunded Bonds on , 2017 at a redemption price of 100% of the principal amount thereof plus accrued interest thereon, in accordance with the Prior Bond Resolution. The City, the Refunded Bonds Bond Registrar and the Escrow Agent shall perform the responsibilities, described in the Prior Bond Resolution, in connection with the redemption of such Refunded Bonds, including the giving of notice of defeasance and redemption as required therein by the Escrow Agent and Refunded Bonds Bond Registrar in the form attached hereto as Schedule E. The Refunded Bonds Bond Registrar shall mail a copy of such notice of defeasance and redemption to Ambac Assurance Corporation and file a copy of such notice of defeasance and redemption with the Municipal Securities Rulemaking Board. Section 3.07. Investment of Certain Moneys Remaining in Escrow Deposit Trust Fund. Subject to the provisions of Section 3.04 of this Agreement, the Escrow Agent shall invest and 5 Page 949 of 1191 010.8278-5795/2/AMERICAS reinvest, at the written direction of the City, in Government Obligations any moneys remaining from time to time in the Escrow Deposit Trust Fund until such time as they are needed. Such moneys shall be reinvested in such Government Obligations for such periods and at such interest rates, as the Escrow Agent shall be directed to invest by the City, which periods and interest rates shall be set forth in an opinion from nationally recognized counsel in the field of law relating to municipal bonds to the City and to the Escrow Agent, which opinion shall also be to the effect that such reinvestment of such moneys in such Government Obligations is not inconsistent with the statutes and regulations applicable to the Refunded Bonds and the Note. Any interest income resulting from reinvestment of moneys pursuant to this Section 3.07 not required to be applied for the payment of the principal of and interest on the Refunded Bonds shall be released to the City. Section 3.08. Escrow Deposit Trust Fund Constitutes Trust Fund. The Escrow Deposit Trust Fund created and established pursuant to this Agreement shall be and constitute a trust fund for the purposes provided in this Agreement and shall be kept separate and distinct from all other funds of the City and, to the extent required by law, of the Escrow Agent and used only for the purposes and in the manner provided in this Agreement. Sectior_192.Sransfer of Funds_A.fter All_Ea-ynz.ents Requir_ed_l y_this_Agreem.ent-are Made. After all of the transfers by the Escrow Agent to the payment of the principal of and interest on the Refunded Bonds provided in Schedule C have been made, all remaining moneys and securities, together with any income and interest thereon, in the Escrow Deposit Trust Fund shall be released to the City; provided, however, that no such transfers (except transfers made in accordance with Sections 3.05 and 3.07 hereof) shall be made until all of the principal of and - interest on the Refunded Bonds have been paid. ARTICLE IV CONCERNING THE ESCROW AGENT Section 4.01. Liability of Escrow Agent. The Escrow Agent shall not be liable in connection with the performance of its .duties hereunder except for its own negligence, misconduct or default. The Escrow Agent shall not be liable for any loss resulting from any investments made pursuant to the terms of this Agreement. The Escrow Agent shall not be liable for the accuracy of the calculations as to the sufficiency of moneys and of the principal amount of the Government Obligations and the earnings thereon to pay the Refunded Bonds. So long as the Escrow Agent applies any moneys, Government Obligations and interest earnings therefrom to pay the Refunded Bonds as provided herein, and complies fully with the terms of this Agreement, the Escrow Agent shall not be liable for any deficiencies in the amounts necessary to pay the Refunded Bonds caused by such calculations. The duties and obligations of the Escrow Agent shall be determined by the express provisions of this Agreement. The Escrow Agent may consult with counsel with respect to any matter relevant to this Agreement, who may or may not be counsel to the City, and be entitled to receive from the City reimbursement of the reasonable fees and expenses of such counsel, and in reliance upon the opinion of such counsel have full and complete authorization and protection in respect of any action taken, suffered or omitted by it in good faith in accordance therewith. 6 Page 950 of 1191 010-8278-5795/2/AMERICAS Whenever the Escrow Agent shall deem it necessary or desirable that a matter be proved or established prior to taking, suffering or omitting any action under this Agreement, such matter may be deemed to be conclusively established by a certificate signed by an authorized officer of the City and the Escrow Agent may in good faith conclusively rely upon such certificate. The Escrow Agent shall have no lien, security interest or right of set-off whatsoever upon any of the moneys or investments in the Escrow Deposit Trust Fund for the payment of fees or expenses for the services rendered by the Escrow Agent under this Agreement. Section 4.02. Permitted Acts. The Escrow Agent and its affiliates may become the owner of all or may deal in the Refunded.Bonds as fully and with the same rights as if it were not the Escrow Agent. Section 4.03. Payment to Escrow Agent. The City shall pay to the Escrow Agent. reasonable compensation for all services rendered by it hereunder and also its reasonable expenses incurred in and about the administration and execution of the trusts hereby created and the performance of its powers and duties hereunder, all as provided in Schedule D hereto. ARTICLE V MISCELLANEOUS Section 5.01. Amendments to this Agreement. This Agreement is made for the benefit of the holders from time to time of the Refunded Bonds and shall not be repealed, revoked, — altered or-amended without the-written-consent-of all such-holders-of the Refunded Bonds,-the -- - Escrow Agent and the City; provided,however, that the City and the Escrow Agent may, without the consent of, or notice to, such holders enter into such agreements supplemental to this Agreement which shall not adversely affect the rights of such holders and shall not be inconsistent with the terms and provisions of this Agreement for any one or more of the following purposes: (a) to cure any ambiguity or formal defect or omission in this Agreement; or (b) to grant to or confer upon the Escrow Agent for the benefit of the holders of the Refunded Bonds any additional rights, remedies, powers or authority that may lawfully be granted to or conferred upon the Escrow Agent. The Escrow Agent shall be entitled to rely upon an unqualified opinion of a nationally recognized counsel in the field of law relating to municipal bonds with respect to compliance with this Section. Section 5.02. Severability. If any one or more of the covenants or agreements provided in this Agreement on the part of the City or the Escrow Agent to be performed should be determined by a court of competent jurisdiction to be contrary to law, such covenant or agreement shall be deemed and construed to be severable from the remaining covenants and agreements herein contained and shall in no way affect the validity of the remaining provisions of this Agreement. 7 Page 951 of 1191 010-8278-5795/2/AMERICAS Section 5.03. Agreement Binding. All the covenants, proposals and agreements in this Agreement contained by or on behalf of the City or by or on behalf of the Escrow Agent shall bind and inure to the benefit of their respective successors and assigns, whether so expressed or not. Section 5.04. Notices to Escrow Agent and City. Any notice, demand, direction, request or other instrument authorized or required by this Agreement to be given to or filed with the Escrow Agent or the City, shall be deemed to have been sufficiently given or filed for all purposes of this Agreement if personally delivered and receipted for, or if sent by registered or certified United States mail, return receipt requested, addressed as follows: (a) As to the City- City of Miami Beach, Florida 1700 Convention Center Drive Miami Beach, Florida 33139 Attention: Chief Financial Officer (b) As to the Escrow Agent- U.S. Bank National Association 225 Water Street �4 Suite 700 Jacksonville, Florida 32202 Attention: Corporate-Trust-Services - -- Any party hereto may, by notice sent to the other parties hereto, designate a different or additional address to which notices under this Agreement are to be sent. Section 5.05. Termination. This Agreement shall terminate when all transfers and payments required to be made by the Escrow Agent under the provisions hereof shall have been made. Section 5.06. Execution by Counterparts. This Agreement may be executed in several counterparts, all or any of which shall be regarded for all purposes as one original and shall constitute and be but one and the same instrument. Section 5.07. Governing Law. This Agreement shall be governed by the laws of the State of Florida.. 8 Page 952 of 1191 010.8278.5795/2/AMERICAS IN WTTNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed by its duly authorized officers. CITY OF MIAMI BEACH,FLORIDA By: Mayor U.S. BANK NATIONAL ASSOCIATION, as Escrow Agent By: Assistant Vice President U.S. Bank National Association, as Refunded Bonds Bond Registrar, hereby agrees to the provisions of this Agreement applicable to the Refunded Bonds Bond Registrar. U.S. BANK NATIONAL ASSOCIATION, as Refunded Bonds Bond Registrar By: Assistant Vice President APPROVED AS TO FORM&LANGUAGE &FOR EXECUTION City Attorney RAP pate 9 Page 953 of 1191 010-8278-5795/2/AMERICAS • SCHEDULE A REFUNDED BONDS Maturity Date Principal Amount Interest Rate 09/01/2021 $ 19,215,000 5.23% it A-1 Page 954 of 1191 010-8278-5795/2/AMERICAS • SCHEDULE B INVESTMENT OF BOND PROCEEDS Type of Security Maturity Date Principal Amount Interest Rate 1 3 B-1 Page 955 of 1191 010-8278-5795/2/AMERICAS SCHEDULE C SCHEDULE OF PAYMENTS ON REFUNDED BONDS Principal Date Redeemed Interest Total 1 C-1 Page 956 of 1191 010-8278-5795/2/AMERICAS SCHEDULE D ESCROW AGENT FEES AND EXPENSES (i) In consideration of the services to be rendered by the Escrow Agent under the Agreement, the City agrees to pay the Escrow Agent a one time fee of $500.00 for all services to be incurred as Escrow Agent in connection with such services, and agrees to reimburse at cost all ordinary out-of-pocket expenses incurred by the Escrow Agent. The term "ordinary out-of-pocket expenses" means expenses of holding, investing and disbursing the Escrow Deposit Trust Fund as provided herein and includes, but is not limited to travel and publication costs,postage and legal fees as incurred. (ii) The City also agrees to reimburse the Escrow Agent for any extraordinary expenses incurred by it in connection with the Agreement. The term "extraordinary expenses" includes (a) expenses arising out of the assertion of any third party to any interest in the Escrow Deposit Trust Fund or any challenge to the validity hereof, including reasonable attorneys' fees, (b) expenses relating to any substitution under Section 3.05 or reinvestment under Section 3.07, and (c) expenses (other than ordinary expenses) not occasioned by the Escrow Agent's miscond r or negligennc_e. (iii) The fees and expenses payable by the City under clause (i) or(ii) above shall not be paid from the Escrow Deposit Trust Fund, but shall be paid by the City from legally available funds of the City. D-1 Page 957 of 1191 010-8278-5795/2/AMERICAS-5795/2/AMERICAS 1 SCHEDULE E NOTICE OF DEFEASANCE AND REDEMPTION City of Miami Beach, Florida Taxable Special Obligation Refunding Bonds (Pension Funding Project), Series 2005 Dated: September 1, 2005 Maturity Date Principal Amount Interest Rate CUSIP Numbers* 09/01/2021 $19,215,000 5.23% 593240BL7 NOTICE IS HEREBY GIVEN that monies have been deposited with U.S. Bank National Association, as Escrow Agent, for the payment of the principal of and interest on the outstanding bonds identified above (the "Bonds"), and such monies, except to the extent maintained in cash, have been invested in direct obligations of the United States of America. U.S. Bank National Association, as Bond Registrar for the Bonds, and the Escrow Agent have been irrevocably instructed to call for redemption prior to maturity, pursuant to their optional redemption provisions;the-Bonds-on , 201-7-(the Redemption,Date")-at-a-redemption priee-of 100% of the principal amount thereof plus accrued interest to the Redemption Date (the "Redemption Price"). The amount so deposited as aforesaid has been calculated to be adequate to pay the principal of and interest on the Bonds on the Redemption Date. The Bonds are therefore deemed to have been paid in accordance with Section 304(G) of Resolution No. 2005-25951 adopted by the City on July 6, 2005. NOTICE IS HEREBY FURTHER GIVEN that the Bonds will be called for redemption on the Redemption Date at the Redemption Price. Payment of the Redemption Price of the Bonds due on the Redemption Date will be made on or after the Redemption Date, upon presentation and surrender of the Bonds at the office of the Bond Registrar for the Bonds located at the following address: U.S. Bank Global Corporate Trust Services, 111 Filmore Avenue E, St. Paul, Minnesota 55107. Bonds held in book-entry form need not be presented. Interest on the Bonds hereby called for redemption will cease to accrue on and after the Redemption Date. Important: The provisions of the Jobs and Growth Tax Relief Reconciliation Act of 2003 (the "Act") require owners to submit their Taxpayer Identification Number (either their social security or employer identification number, as appropriate) with each Bond presented for payment (whether by purchase or redemption). Failure to comply will subject the payment of the principal portion to the withholding of twenty-eight percent (28%) of such principal portion. To No representation is made as to the correctness of these CUSIP numbers either as printed on the Bonds or contained in this Notice. E-1 Page 958 of 1191 010-8278-5795/2/AMERICAS avoid being subject to such withholding, owners should submit an IRS Form W-9 at the time the Bonds are presented for payment. Form W-9 is available from your local bank or broker. U.S. BANK NATIONAL ASSOCIATION, as Escrow Agent and Bond Registrar Dated: December_, 2016 E-2 010-8278-5795/2/AMERICAS Page 959 of 1191 •