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Ordinance 615 , c • c . 1 . p 1 1 *T 1 ORDINANCE NO. 615 • 1 t, 61: 0j /J • AN OR.DIANCE PROVIDING FOR THE CONSTRUC= 5I0F, OPERATION AND MAINTENANCE OF A -\(1.0 • bc0 MUNICIPAL HOSPITAL FOR THE CITY OF MIAI BEACH, DADE COUNTY, FLORIDA; FOR THE ISSUANCE OF : 500,000 MUNICIPAL HOSPITAL REVENUE BONDS OF SAID CITY TO PAY THE COST OF CONSTRUCTING AND E ,UIPPING SUCH HOSPITAL, AND PROVIDING FOR THE SEGRE- GATION AND ALLOCATION OF REVENUES FOP. THE PAYMENT OF THE COSTS OF OPERATING AND MAINTAINING SUCH HOSPITAL AND PAYING THE INTEPEST ON AND P=INCIPAL OF SAID HOSPITAL REVENUE CEFTIFICATES AS THE SAME BECOME DUE. WHEREAS the City of Miami Beach, . a municipal corporation duly organized and operating under the constitution and. laws of the State of Florida is, pursuant to said constitution and laws and particularly its legislative charter, authorized among other things to acquire real and personal property for the benefit of the City, its citizens and its winter and summer visitors and to constrict and operate property, including hospitals , for revenue and to charge reasonable fees for privileges- afforded, and is further authorized to borrow money in connection with any such undertaking and to provide and enforce rules for the manner and time of payment of any service supplied by said City and to limit the use of and conditions under which any of such services may be supplied; and WHEREAS said City is in like manner authorized and. re- quired to provide for the preservation of the general health of the inhabitants of said City, to prevent the introduction of contagious or infectious diseases and prevent and suppress diseases generally and enforce the removal of persons afflicted with contagious or infectious diseases to hospitals or places of isolation provided by said City, and to establish and equip hospitals and prescribe rules and regulations respecting the poor, indigent, infirm and insane and do or regulate any other matter or thing that may tend to promote the health, welfare, prosperity and morals of the City, and to do and perform all things necessary for the government of the City not inconsistent with the constitution and laws of the United States , the consti- tution of Florida and the terms and the provisions of the charter law of said City; and WHEREAS the discharge of the duties and obligations of said City with respect to the hospital care of the poor, indigent, infirm and the employees of the City injured in performance of their duties has required the expenditure of large sums by said City each year from its corporate funds which amount approximated S35 ,000 for the past year, and the required amount to be expended for that purpose in future years will not be less but rather will be more by reason of constant increase in population of the City, and it has been determined to be advisable that said City construct , equip, operate and maintain a municipal hospital for the care of such persons and any other persons that may require the services of such hospital on a pay-patient basis ; and WHEREAS, in addition to all of the foregoing, said City is , in and by the provisions of Chapter 21401 of the Acts of the Legislature of Florida, 1941, authorized to construct, equip, operate and maintain hospitals and to issue bonds to finance the cost of such construction and equipment and secure the payment of such bonds as to both principal and interest solely by a, pledge of revenues to be derived from the operation of such hospital; and WHEREAS it is necessary and for the best interests of said City that a. municipal hospital be constructed and equipped . , / - j , f II/6 _ -1- 1 ti. t • r , 1 and that for the purpose of paying the cost thereof there be borrowed the sum of 4500,000, to be evidenced by revenue bonds as hereinafter provided, and that the control and operation of such hospital be carried out by a Board of Trustees hereinafter provided to be appointed and constituted; NOW, THEREFORE, Be It Ordained by the City Council of the City of Miami Beach, Dade County, Florida, as follows: Section 1. That there be and there is hereby ordered constructed, equipped, operated and maintained in and for the City of Miami Beach, a municipal hospital as referred to in the pre- amble hereof, and that , for the purpose of paying the cost of constructing and equipping such hospital, there be and there are hereby ordered issued Municipal Hospital Revenue Bonds of said City in the aggregate principal amount of $500,000 of the denomina- tion of $1,000 each, to be numbered consecutively from 1 to 500, inclusive, dated December 1, 1941, bearing interest at the coupon rate of three and one-half per cent (31-A) per annum, payable semi-annually on the first days of June and December of each year, and maturing in numerical order on December 1 of the respective years as follows: Year Amount Year Amount 1944 415,000 1954 $23,000 1945 17 .000 1955 24,000 1946 18,000 1956 25,000 1947 18,000 1957 26,000 1948 19,000 1958 27,000 1949 19,000 1959 28,000 1950 20,000 1960 29,000 1951 21,000 1961 30,000 1952 22,000 1962 31,000 1953 22,000 1963 32,000 1964 33,000 provided, however, bonds numbered 171 to 500, inclusive, as afore- said, shall be subject to redemption by said City prior to maturity, in whole or, from time to time, in part in the inverse order of numbering thereof, on any interest payment date on or after Decem- ber 1, 1952, and in the event of redemption of any of said bonds notice thereof identifying the bonds to be redeemed shall be given by publication at least once during each of two consecutive calendar weeks, the first of such publications to be not less than thirty days prior to such redemption date in a newspaper or financial journal of general circulation published in Dade County, Florida, and one published in the City of New York, New York. It is further agreed that should any of said bonds be redeemed prior to maturity as aforesaid said City will pay to the respective holders upon surrender of the bonds interest represented by the coupons thereto attached which have accrued as of the redemption date, and additional interest in an amount equal to three per cent (3A) of the principal amount of such bonds WO per 41,000 par value) if redeemed during the years 1952 or 1953; two per cent (2f ) of the principal amount of such bonds W20 per 31,000 par value ) if redeemed during the years 1954 or 1955; one per cent (1A) of the principal amount of such bonds ( 10 per 51, 000 par value) if redeemed during the years 1956 or 1957; and at no additional in- terest (par) if redeemed on any interest date thereafter. Interest at the rate of three and one-half per cent (3-1-10) as aforesaid shall be evidenced by coupons attached to each of said bonds, and both principal and interest be payable in lawful money of the United States of America, at the principal office of The Chemical Bank & Trust Company in the City of New York, New York. Each of said bonds shall be executed and signed on behalf of said City by its Mayor, attested by its City Clerk, and the official seal of said City shall be affi:red thereto. The interest coupons attached to said bonds shall be executed with the facsimile signatures of said Mayor and City Clerk, and said officials by the execution of said bonds shall thereby adopt as and for their A el -2- i o n proper signatures their respective facsimile signatures appearing on eacz of said coupons. Section 2. All of said bonds , togetier with the interest thereon , shall be payable solely from and secured only by revenues of the hospital, all as hereinafter more specifically provided. The 'tMunieipal Hospital Revenue Bond Fund, " hereinafter created, as well as all funds which are or should in accordance with the terms hereof be paid into said fund are hereby pledged for the purpose of equally securing, in priority to any other obligations of said City, the pro rata payment of both the prin- cipal of and interest on the bonds authorized by this ordinance and from time to time outstanding, and the equal pro rata benefit , security and protection of the holders of said bonds and the coupons attached thereto. Section . That upon presentation at the office of the City City Clerk of the Cit of Miami Beach of any of said bonds, such bonds may be registered as to principal in the name of the holder thereof on the books of the City to be kept for that purpose, which registration shall be noted on the back of the bonds so registered, and thereafter the principal of the bonds so regis- tered shall be paycble only to the registered holder, his legal representatives or assigns. Bonds so registered may be trans- ferred to another registered holder or to bearer upon presentation to the City Clem. with a legal assignment duly acknowledged or proved. Registration of any of said bonds as to principal shall not affect the transferability of the coupons thereto attached, and such coupons shall continue to be transferable by delivery. Each and every successive holder of any or all of said bonds during such time as they are payable to bearer, and such holder of each of such coupons thereto attached, shall be conclusively presumed to forego and renounce his and their equities in favor of subse- quent holders for value without notice , and to agree that said bonds while so payable to bearer, and each of the coupons thereto attached, may be negotiated by delivery by any person having possession thereof, howsoever such possession may have been ac- quired, and that any holder who shall have taken any of said bonds or any of the coupons from any person for value and without notice thereby has acquired absolute title thereto, free from any defenses enforceable against any prior holder and free from all equities and claims of ownership of any such prior holder, and the City of Miami Beach and its officials, and the paying agent , shall not be affected by any notice to the contrary. Section 4. That each of said bonds and coupons attached thereto, and provisions for registration appertaining thereto, shall be in substantially the following form: (Form of Bond) UNITED STATES OF AMERICA STATE OF FLORIDA COUNTY OF DADE CITY OF I+iIAmI BLACK MUNICIPAL HOSPITAL nEVENUE BOND Number 31,000 KNOW ALL MEN BY ThreoE PRESENTS that the City of Miami Beach, in the County of Dade and State of Florida, for value received, hereby promises to pay to the bearer hereof or, if this bond be registered as hereinafter provided, to the registered holder hereof, solely from the special fund hereinafter provided, the sum of One Thousand Dollars ($1,000) on the first day of December, 19 , and from said special fund to pay interest thereon at the rate of three and one-half per cent (3e%) per annum, pay- 4 . ii.able semi-annually on June 1 and. December 1 of each year until is -3_ 1 paid except as the provisions hereinafter set forth with respect to prepayment and redemption may be applicable hereto, such interest as aforesaid as may accrue prior to the maturity date of this bond to be payable only upon presentation and surrender of tyle annexed interest coupons as the same severally become due; both principal and interest being payable in lawful money of the United States of America at the principal office of The Chemical Bank & Trust Company, in the City of New York, New York. This bond is one of a duly authorized issue aggregating 4500,000 principal amount , and has been issued by said City of Miami Beach pursuant to the Constitution and laws of the State of Florida including the legislative charter law of said City and as provided by an ordinance duly adopted by the City Council of said City for the purpose of paying the cost of constructing and equipping a municipal hospital in and for said City. The bonds of said authorized issue, together with all interest thereon, are payable solely from revenues to be derived from the operation of said municipal hospital, a sufficient portion of which revenues , exclusive of the amount of such revenues required for operation and maintenance of said hospital, has been ordered set aside as a special fund and pledged for that purpose. Under the provisions of said ordinance authorizing the issuance of this bond there shall be set aside into said special fund out of the revenues derived from the operation of said hospital, after provision for payment of all costs of operation and maintenance thereof, such sums as shall be sufficient for the payment of the principal of and interest on this bond and all other bonds outstanding under the provisions of said ordinance. Said City hereby reserves the right from time to time to redeem bonds numbered 171 to 500, inclusive, of the issue of which this bond is one, prior to maturity, as a whole or, from time to time, in part in the inverse order of their numbering on any scheduled interest payment date on or after December 1, 1952, and in the event said City exercises such right of redemp- tion, it is agreed that interest , in addition to that represented by the coupons hereto attached, which has accrued as of the redemption date, will be paid to the holder of the respective bonds upon surrender thereof in an amount equal to three per cent (3%) of the principal amount of such bonds ($30 per 1,000 par value) if redeemed during the years 1952 or 1953 ; two per cent (2%) of the principal amount of such bonds ($20 per $1,000 par value) if redeemed during the years 195+ or 1955; one per cent (1%) of the principal amount of such bonds ($10 per 41,000 par value) if redeemed during the years 1956 or 1957; and at no additional interest (par) if redeemed on any interest date thereafter. Notice of the exercise of such right of redemption, identifying the bonds to be thus redeemed, will be published at least once during each of two consecutive calendar weeks in a newspaper or financial journal of general circulation published in Dade County, Florida., and one published in the City of New York, New York, the first of such publications to be not less than thirty days prior to the redemption date. All such bonds, as to which said City reserves the right of redemption and as to which notice as aforesaid shall have been given and for the re- demption of which, upon the terms aforesaid, funds have been provided., will cease to bear interest on the redemption date. This bond is neither payable: from nor a charge upon any funds other than the revenues of the hospital pledged to the payment thereof, as provided in the ordinance pursuant to which this bond has been issued, and no holder or owner hereof or of any of the interest coupons hereunto appertaining shall aver have the right to compel any exercise of the taxing power of said City to pay this bond nor the interest thereon, nor enforce payment against any property of said City, nor shall this bond constitute a charge, lien or encumbrance upon any property or credit of said City other than the revenues of said hospital, as aforesaid. This bond does not represent nor constitute an indebtedness of the • A ji" _4_... City of Miami Beach within. the meaning of any constitutional provision or limitation. This bond may be registered as to principal in the name of the holder on the books of said City in the office of its City Clerk, such registration to be noted on the back hereof by such City Clerk, after which no transfer hereof shall be valid unless made on said books and similarly noted on the back hereof, but this bond may be discharged from registration by being transferred to bearer, after which it shall again be transferable by delivery but may be again registered as before. The registration of this bond as to principal shall not restrain the transferability by delivery merely of the coupons hereto attached. Each and every successive holder of this bond during such time as it is payable to bearer and each holder of each of the coupons hereto attached are conclusively presumed to forego and renounce his and their equities in favor of subsequent holders for value without notice , and to agree that this bond while so payable to bearer and each of the coupons hereto attached may be negotiated by delivery by any person having possession thereof, howsoever such possession may have been acquired, and that any holder who shall have taken this bond or any of the coupons from any person for value and without notice thereby has acquired absolute title thereto, free from any defenses enforceable against any prior holder and free from all equities and claims of ownership of any such prior holder, and the City of Miami Beach and its officials, and the paying agent , shall not be affected by any notice to the contrary. It is hereby certified, recited and declared that all acts , conditions and things requiredto exist , happen and be per- formed precedent to and in the issue of this bond do exist, have happened and have been performed in the manner and form required by law; that said City will cause the municipal hospital for the account of which this bond has been issued to be continuously operated as a revenue producing undertaking; that a schedule of rates for the use , occupancy and services of said hospital will be fixed, revised, charged, collected and accounted for so that the revenues will be sufficient to pay the cost of maintaining and operating the hospital (including costs of insurance thereon) and to pay promptly when due the interest on all of the bonds and to redeem and fully discharge all of said bonds at or prior to maturity thereof; that a sufficient amount of the revenues derived from the operation of the hospital has been pledged to and will be set aside each year into a special fund created and identified as the "Municipal Hospital Revenue Bond Fund" for the purpose of paying the interest on this bond and the issue of which it is a part , and redeeming and fully discharging said bonds at or prior to the maturity thereof; and that the amount of this bond, to- gether with all other obligations of said City, does not exceed any limitation prescribed by law. IN WITNESS WHEREOF, the said City of Miami Beach has caused this bond to be executed on its behalf by its Mayor, attested by its City Clerk, and its corporate seal to be hereunto affixed, and the interest coupons attached hereto to be executed with the facsimile signatures of said Mayor and City Clerk, all as of the first day of December, 1941. Attest : Mayor City Clerk (Form of Coupon) Number $17. 50 . On the first day of , 19_, the City of i 4' -5- • Miami Beach, in Dade County, Florida, will pay to bearer Seventeen Dollars and Fifty Cents (317. 50) in lawful money of the United States of America at The Chemical Bank & Trust Company, in the City of New York, New York, as provided in and being interest due that day on its Municipal Hospital Revenue Bond, dated December 1 , 1941, Number Attest : Mayor City Clerk (Form for Registration Blank) Date of Name of Signature of Registration Registered Holder City Clerk Section 5. That the bonds hereby authorized be executed as herein provided as soon after the adoption of this ordinance as may be and shall thereupon be sold and delivered to Leedy, Wheeler & Co. and Atwill and Company, pursuant to the agreement heretofore entered into under date of October 4, 1941, the terms and conditions of which agreement are in all respects hereby ratified and confirmed. All sums received as accrued interest in the issuance and delivery of said bonds and a sufficient portion of the proceeds to be equal to the interest to accrue on the bonds prior to completion of the hospital shall be paid into the "Municipal Hospital Revenue Bond Fund. " From and after the completion of the hospital as herein- before provided it shall be continuously operated as a revenue producing undertaking and the income and revenues therefrom shall be set aside daily as collected into a special and separate fund to be used and applied in the payment of the expenses of its operation and maintenance and to pay the interest on and principal of the bonds hereby authorized as may be outstanding, which revenues shall be apportioned as follows, to wit: There shall be and there is hereby created, and so long as any of said bonds remain outstanding there shall be maintained, an account to be known as the "Municipal Hospital Operation and Maintenance Account" and into which there shall be paid during each month an amount sufficient for the purpose of paying all reasonable and normal expenses of operation and maintenance of the hospital for such month and which shall be used for that purpose and no other; but if in any month for any reason there be a failure to pay the required amount into said account , then the amount of any deficiency shall be added to the amount otherwise required to be paid into said account in the next succeeding month. Fixed annual charges suchas insurance and the cost of major maintenance expenses shall be computed and set up on an annual basis and one-twelfth of the amount thereof shall be charged and accumulated each month. There shall be and there is hereby created a special fund to be known as the "Municipal Hospital Revenue Bond Fund" (hereinafter called the "sinking fund") , into which there shall be set apart and paid from the balance of said revenues, amounts sufficient to pay the interest on and principal of the bonds as the same become due, and it is hereby determined that rates f1 -6- •� and charges for use, occupancy and services of the hospital shall at all times be such as will permit the following minimum amounts to be so set apart and paid into said sinking fund during the periods of twelve mont:ls preceding December 1 of the respective years : (1) A sum equal to one hundred per cent (100%) of the principal of all bonds maturing on or prior to December 1 next succeeding, plus (2 ) a sum- equal to one hundred per cent (100%) of the interest on all outstand- ing bonds becoming due on or prior to December 1 next succeeding, and (3) in addition to the foregoing a sum equal to ten per cent (100) of the total of the amounts defined by (1) and (2) , payment of such additional amount to be continued until there is accumulated in such sinking fund as a reserve an amount equal to interest for two years on the bonds outstanding. No further payments need be made into said sinking fund when and so long as the amount therein (including the reserve) is suffi- cient to retire the bonds then outstanding plus the amount of interest due and thereafter to become due on said bonds on and prior to such retirement. All moneys held in said sinking fund shall be kept apart from all other municipal funds and shall be deposited in banks, and all such deposits in excess of $5,000 shall be continuously secured by a valid pledge of at least an equivalent principal amount of direct obligations of the United States Government ; provided, however, that the provisions of the charter law of said City governing the deposit of City funds shall always be observed in the deposit of the moneys in said sinking fund. Such payments shall be set apart and paid into said sinking fund monthly on the first day of each month, except that when the first day of any month shall be a Sunday or legal holiday, then such payments shall be made on the next succeeding secular day. Said sinking fund, as hereinabove provided, shall be used solely and only, and is hereby pledged , for the purpose of paying the bonds hereby authorized or permitted to be issued, together with interest thereon, and for no other purpose whatso- ever. Not less than fifteen days prior to each interest pay- ment date there shall be withdrawn from the sinking fund and remitted to the place of payment a sufficient amount to pay the interest and principal (if any) becoming due on such bonds on such succeeding interest payment date. If and when bonds are called for redemption prior to maturity as hereinbefore provided, funds sufficient to accomplish sucei redemption shall also be withdrawn and remitted as aforesaid in ample time prior to the redemption date . Section 6. That it is hereby recognized that the value of services and benefits to be rendered by said hospital to the City of Miami Beach as a whole in furnishing hospital care to the poor, indigent, infirm and other charity patients , as well as to employees of the City injured while engaged in the perform- ance of their duties, will be not less than $35,000 per year, and it is therefore hereby covenanted and agreed on behalf of said City to pay not less than that amount each year for the services aforesaid to be furnished by said hospital, such payments to be made in semi annual installments on May 15 and November 15 of each year, provided, however, if on May 15 or November 15 of any year there be insufficient funds in the sinking fund to pay the interest on and principal ( if any) becoming due on the next succeeding June 1 or December 1 respectively of the bonds hereby authorized, then the City shall take credit on such payment due from the City for the services aforesaid by depositing all or such portion of the amount so due as will be equal to the de- ficiency directly into the sinking fund so that the City will thereby be assured of continued use and occupancy of the hospital free of any interference by any bondholder. 4 Section Z. That , in order to provide for the efficient0;1 /14144 s _7_ operation of the hospital when constructed, the management and control thereof shall be carried on by a Board of Trustees con- sisting of nine (9) members who shall be persons of outstanding reputation for business ability and integrity and who shall be appointed in the first instance by the City Manager with the consent and approval of the City Council of said City. These trustees shall be appointed to serve as long as any of the bonds herein authorized remain outstanding and unpaid. Trustees will be subject to removal from office only on proof of malfeasance, misfeasance or non-feasance. Such removal shall take effect after a full hearing before the trustees and upon a majority vote of that body. In_ the event of a vacancy of any appointed trustee, a successor shall be appointed by the trustees themselves. Any person who shall have held an elective office of said City shall not be eligible for appointment as such trustee until at least one year after the expiration of the term for which he was elected. A majority of said trustees at any meeting shall constitute a quorum and the Board may adopt rules and by-laws for the time and place of its meetings and the conduct thereof. Each trustee shall receive compensation for his services at the rate of not more than $5.00 per meeting attended, as may be fixed from time to time by the City Council, with a maximum compensation to each trustee in any one year of $100.00. At the first meeting of the Board of Trustees, and annually thereafter, it shall organize by designating one of the trustees to act as chairman and by the appointment of a secretary. Section 8. An Annual budget of expenses of operation and maintenance of the hospital shall be prepared by the Board of Trustees which, after the first year of operation, shall be based upon the experienced percentage of occupancy, revenues and ex- penses, and for the first year shall be based upon percentage of occupancy, revenues and expenses approved by an independent architect or engineer experienced in hospital operation. Not less than ninety (90) days prior to the beginning of eaca fiscal year of the City a "Proposed Annual Budget" shall be prepared and submitted to the City Council of said City by the Board of Trustees of the hospital covering the anticipated monthly requirements and expenditures for operation and maintenance of the hospital and the anticipated revenues from the operation of the hospital during the ensuing fiscal year. Such budget shall be prepared so as to show revenues sufficient to pay all operating and maintenance expenses as well as annual interest and principal requirements for the bonds hereby authorized. A copy of such proposed annual budget shall, at least sixty days prior to the beginning of such ensuing fiscal year, be mailed to any bond- holder who may have theretofore requested same. If the holder or holders of five per cant (5A or more of the aggregate principal amount of revenue bonds then outstanding shall so request, at least thirty days prior to commencement of the fiscal year the City Council shall hold a public hearing on such proposed annual budget , at which hearing any person in interest may appear and file written objections. If no objections are filed by any bond- holders, or if such objections are filed then after the hearing thereon, the budget may be approved by the City Council and same shall constitute the operating budget for the hospital for the year for which prepared. The rates and charges for use, occupancy and services shall be fixed and maintained so that based on anticipated percentage of use, occupancy and services, ascertained as aforesaid, the revenues each year will be sufficient to balance with the respective annual budgets. The total expenditures in any fiscal year shall not exceed the respective items as shown by the annual budget for such year, and if for any reason beyond the control of the City an annual budget shall not have been finally appr.)ved. bef,)re the commencement of the fiscal year, the budget for the preceding fiscal year shall control until the prepared budget for such year has been approved. The unexpended and unappropriated balance of revenues in excess of the budget for any year may after the close of such year be withdrawn, transferred and expended as the City Council of said city may from time t o time direct , including the purchase of Miami Beach Hospital Revenue bonds in the ooen market . .. The bond redemption and interest payments shall -Wik, constitute a direct charge and lien on the required portion or amount of net revenues received from the use, occupancy and services of the hospital, and all revenues paid into the sinking fund shall constitute a trust fund for the security and payment of such bonds and shall not be used or pledged for any other purpose. Section 2. That the City covenants and agrees that so long as any of the bonds hereby authorized remain outstanding proper books of record and account will be kept separate from all other records and accounts showing complete and correct entries of all transactions relating to the hospital, and that the holder or holders of any of said bonds shall have the right at all reasonable times to inspect all records, accounts and data relat- ing thereto. The City further covenants and agrees that it will in each year, so long as any of said bonds remain outstanding, cause an audit of the books and accounts to be made by an inde- pendent accountant not regularly in the employ of the City on a monthly salary, showing the receipts and disbursements for account of the hospital and of the retirement of bonds, and that a copy of the report of such audits will be available for inspection by any bondholder so requesting. Section 10. That said City hereby covenants and agrees with each and every of the holder or holders of the bonds herein authorized to be issued that it will faithfully and punctually perform all duties with reference to the hospital required by the Constitution and laws of the State of Florida and will cause to be charged, collected and accounted for sufficient revenues from its operation to meet the requirements of this ordinance and will segregate said revenues and make the application thereof as herein provided; and that said hospital, including all extensions and additions thereto, shall not be sold, leased, mortgaged, or in any manner disposed of beyond control of the City except as here- inbefore provided, unless and until all the bonds herein author- ized to be issued shall have been paid in full, both principal and interest, or adequate provision for such payment shall have been made; and the City further covenants and agrees with the holders of said bonds to maintain in good condition and cause said hospital to be continuously operated, and to cause to be charged, collected and accounted for, such rates and charges for use, occupancy and services thereof so that the gross revenues will be sufficient at all times to provide funds for such of the expenses of its operation and maintenance as are not otherwise paid and to make the prescribed payments into the sinking fund, as provided herein. Section 11. That said City covenants and agrees it will keep the hospital insured under a policy or policies of a responsible insurance company or companies authorized and quali- fied under the laws of the State of Florida to assume the risks. Coverage of such insurance shall include damage by fire and lightning, tornado and winds, earthquake, flood, collapse, mali- cious damage and explosion, and shall be for the full amount of the insurable value subject to the deduction from such loss or damage ( except in case of a total loss ) of not more than five per cent (5i6) of such insurable value, nor more than $25,000. The proceeds of any and all such insurance, are hereby pledged by the City as security for the bonds issued hereunder until such proceeds are paid out in making good the loss or damage in respect of which such proceeds are received, either by repairing the property damaged or replacing the property destroyed; provided, that if the property cannot be repaired or restored to an in- surable risk then such proceeds shall be used to retire bonds as herein otherwise provided. The proceeds of any insurance not applied to the work of repairing or replacing the property insured or destroyed within six months after its receipt shall be placed in the sinking fund. Section 12. That said City may at its option also insure the hospital in a responsible insurance company or com- panies authorized and qualified under the laws of the State of Florit-:a to assume the risk thereof against loss of the use and A A occupancy thereof resulting from any of the causes set forth in j J • 1 g►' 41) -9_ the next preceding section in such an amount as will provide an income equivalent to at least $35,000 per annum during the period of suspension of use. Such insurance may be subject to the deduction at the option of the City of not more than ten days from such period of suspension. The proceeds of such insurance shall be paid into the sinking fund and shall be subject to use and application as hereinbefore provided for moneys in said fund. Section 12. The bonds authorized or permitted to be issued hereunder and from time to time outstanding shall not be entitled to priority one over the other in the application of the revenues regardless of the time or times of their issuance, it being the intention that there shall be no priority among the bonds regardless of the fact that they may be actually issued and delivered at different times, and that any other bonds or obligations thereafter issued or incurred shall be subject to the priority of security and source of payment of the bonds hereby authorized and interest thereon. Section lel-. Each of the following events is hereby declared an-7-event of default" , that is, if (a) Payment of the principal of any of the bonds, either at the date therein specified for their payment or by proceedings for redemption or otherwise , shall not be made; or (b) Payment of any installment of interest shall not be made on the date specified for the payment of such interest or within thirty days thereafter; or ( c) Default shall be made in the due and punctual observance or performance of any of the covenants, con- ditions and agreements on the part of the City in the bonds or in this ordinance, or in any pertinent law contained, and such default shall continue for a period of thirty days after written notice specifying such de- fault and requiring the same to be remedied shall have been given to the. City by the holders of not less than ten per cent (10%) in principal amount of the bonds then outstanding. Section 15.. Upon the happening of any event of default , then and in every such case, the holder or holders of any of the bonds then outstanding may proceed to protect and enforce the rights of the bondholders by a suit, action or special proceeding in equity or at law, or by a proceeding in the office of any state or federal board or officer raving jurisdiction either for the specific performance of any covenant or agreement or execution. of any power, or for the enf_}rcement of any proper legal or equitable remedy as shall be deemed most effectual to protect and. enforce the rights aforesaid. The bonds hereby authorized and from time to time outstanding shall be neither payable from nor a charge upon any funds other than the revenues of the hospital pledged to the payment thereof and as hereinbefore provided. No holder or owner of any of said bonds or coupons appertaining thereto shall ever have the right to compel any exercise of the taxing power of said City to pay any of said bonds nor interest thereon, nor have the right to enforce payment of any of said bonds nor interest thereon against any property of the City. Said bonds shall not constitute a charge, lien or encumbrance upon any property or credit of said City other than revenues of said hospital as aforesaid. Said bonds shall not represent nor constitute an indebtedness of the City of Miami Beach within the meaning of any constitutional, statutory or charter provision or limitation. Section 16. That BEN SHEPAhD, City Attorney, is hereby authorized and directed to institute appropriate pro- ceedings in the Circuit Court of the Eleventh Judicial Circuit of Florida, in and for Dade County, and to conduct such pro- ceedings for the purpose of procuring a final decree of court 0 v alidatins said bonds. The properofficials of said Cityare , 4►/ 1 _10- , hereby authorized to verify and execute any pleadings in such proceedings for and on behalf of said City. Section 1j. The provisions of this ordinance shall constitute a contract between the City and the holders of the bonds herein authorized to be issued, and after the issuance of any of the bonds no change, variation or alteration of any kind of the provisions of this ordinance shall be made in any manner except as herein provided until such time as all of said bonds issued hereunder and the interest thereon have been paid in full. Section 18. That all acts heretofore performed and proceedings heretofore taken not inconsistent with the provisions of this ordinance with respect to the hospital, financing the cost thereof, including the issuance and sale of bonds, and with respect to the operation and maintenance of said hospital, are hereby ratified and confirmed, and it is certified that all acts required at this time to be performed and proceedings required to be taken for the construction, operation and maintenance of the hospital and the issuance and sale of bonds as herein con- templated have been duly and legally performed and taken in the manner and form required by law. Section 19. If any section, paragraph, clause or provision of this ordinance shall be held invalid, the invalidity of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this ordinance. Section 20. All ordinances, resolutions and orders, or parts thereof in conflict with the provisions of this ordinance are, to the extent of such conflict , hereby re,Dealed. Section 21. That it is hereby declared that the health and welfare of the City is in peril and that this ordinance be and the same is hereby declared to be an emergency measure and that same shall become effective forthwith following its passage and approval as by the charter law of said City provided. PASSED AND ADOPTED this 12th day of November, A. D. , 1941. OF Mayor Attest : lty Clerk Passed as an emergency measure : 1st reading November 10th, 1941, being an adjourned session of the regular meeting held November 5th, 1941. Second reading, by titic only and the third time in full on November 12th, 1941, being also an adjourned session of said regular meeting held November 5th 1941. Posted -- November 15th, 1941. J00 -11- 1.1) No • 4610 •