Loading...
98-22820 RESO RESOLUTION NO. 98-22820 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, REGARDING A CERTAIN GEOGRAPHIC AREA WITHIN THE CITY OF MIAMI BEACH CALLED THE CITY CENTER/HISTORIC CONVENTION VILLAGE REDEVELOPMENT AND REVITALIZATION AREA, DESCRIBED GENERALLY AS BEING BOUNDED ON THE EAST BY THE ATLANTIC OCEAN, ON THE NORTH BY 24TH STREET, ON THE WEST BY WEST AVENUE AND ON THE SOUTH BY 14TH LANE; CONFIRMING THE PLEDGE FOR THE BENEFIT OF ALL BONDS (AS DEFINED HEREIN) OF PROCEEDS OF THE RESORT TAX LEVIED BY THE CITY TO THE EXTENT PROVIDED IN RESOLUTION NO. 94-21008 ADOPTED BY THE CITY ON JANUARY 5, 1994; AUTHORIZING THE ISSUANCE BY THE MIAMI BEACH REDEVELOPMENT AGENCY OF NOT MORE THAN $40,000,000 TAX INCREMENT REVENUE BONDS, TAXABLE SERIES 1998A (CITY CENTER/HISTORIC CONVENTION VILLAGE), AND NOT MORE THAN $10,000,000 TAX INCREMENT REVENUE BONDS, SERIES 1998B (CITY CENTER/HISTORIC CONVENTION VILLAGE), IN ACCORDANCE WITH THE REQUIREMENTS OF CHAPTER 163, PART III, FLORIDA STATUTES, AS AMENDED; COVENANTING TO PROVIDE CONTINUING DISCLOSURE IN CONNECTION WITH SAID SERIES 1998 BONDS IN ACCORDANCE WITH SECURITIES AND EXCHANGE COMMISSION RULE 15c2-12 AND AUTHORIZING THE FINANCE DIRECTOR TO EXECUTE AND DEUVER AN AGREEMENT WITH RESPECT THERETO; AND AUTHORIZING OFFICERS AND EMPLOYEES OF THE CITY TO TAKE ALL NECESSARY ACTIONS IN CONNECTION THEREWITH. WHEREAS, the Miami Beach Redevelopment Agency (the "Agency") has heretofore issued its (i) $25,000,000 Tax Increment Revenue Bonds, Series 1993 (City Center/Historic Convention Village), $37,500,000 Tax Increment Revenue Bonds, Series 1996A (City Center/Historic Convention Village) and $7,705,000 Tax increment Revenue Bonds, Series 1996B (City Center/Historic Convention Village) (collectively, the "Prior Bonds" and together with any additional bonds issued on a parity therewith under the provisions of the Bond Resolution (as defined below), the "Bonds"), under the provisions of Resolution No. 150-94 adopted by the Agency on January 5, 1994, as supplemented (as amended and supplemented from time to time, the "Bond Resolution"), for the purpose of providing funds for the acquisition DOA:[04548.DOCS.MIAl80298)CITY _ RESO-3 and clearing of certain property and the construction of certain public improvements in an area ofthe City of Miami Beach, Florida (the "City") known as the "City Center/Historic Convention Village Redevelopment and Revitalization Area", all in accordance with a redevelopment plan (the "Redevelopment Plan") adopted by the Agency under Chapter 163, Part III, Florida Statutes, as amended (the "Act"), and approved by the City pursuant to Resolution No. 93-20721 adopted by the City on February 12, 1993; and WHEREAS, the Bonds are primarily payable from certain Net Trust Fund Revenues (as defined in the Bond Resolution) received by the Agency pursuant to Section 163.387 of the Act, Ordinance No. 93-2836 adopted by the City on February 24, 1993 and Ordinance No. 93-28 enacted by Miami-Dade County, Florida on April 27, 1993; and WHEREAS, the Net Trust Fund Revenues initially were estimated not to be sufficient to pay the principal of and interest on the Bonds; and WHEREAS, because of the importance of the Redevelopment Plan to the economic development of the City, the City, pursuant to Resolution No. 94-21008 adopted on January 5, 1994, as supplemented (the "Supplemental Revenues Resolution"), provided a supplemental source of funds to the Agency for the payment of principal of and interest on the Bonds and to make certain other deposits required in respect of the Bonds, and, in furtherance of this end, the City pledged the Supplemental Revenues (as defmed in the Supplemental Revenues Resolution) to the payment of the principal of and interest on the Bonds and to make such other deposits as are required in respect of the Bonds, on the basis provided in the Supplemental Revenues Resolution and in the Bond Resolution; and WHEREAS, in furtherance of the Redevelopment Plan, the Agency now intends to issue its (i) Tax Increment Revenue Bonds, Taxable Series 1998A (City Center/Historic Convention 2 DOA:[04548.DOCS.MIAl80298]CITY _ RESO-3 Village) (the "Series 1998A Bonds"), in the principal amount not to exceed $40,000,000, and (ii) Tax Increment Revenue Bonds, Series 1998B (City Center/Historic Convention Village) (the "Series 1998B Bonds" and together with the Series 1998A Bonds, the "Series 1998 Bonds"), in the principal amount not to exceed $10,000,000, as additional parity bonds pursuant to Section 304(H) of the Bond Resolution and a resolution supplemental thereto adopted by the Agency on July 1, 1998 (the "Series 1998 Agency Resolution"), a copy of which is attached hereto as Exhibit A and made a part hereof, for the purposes described in the Series 1998 Agency Resolution, which Series 1998 Bonds shall be "Bonds" under the Bond Resolution and the Supplemental Revenues Resolution and shall be secured under the Bond Resolution and the Supplemental Revenues Resolution on a parity with the Prior Bonds and any additional Bonds hereinafter issued under the Bond Resolution; and WHEREAS, the City desires to confirm its pledge under the Supplemental Revenues Resolution; and WHEREAS, the City further desires to provide certain covenants for the benefit of MBIA Insurance Corporation ("MBIA") as the issuer of the Series 1998 Bond Insurance Policy and the Series 1998 Reserve Policy (as such terms are defined in the Series 1998 Agency Resolution); and WHEREAS, the City further desires to authorize and approve the issuance of the Series 1998 Bonds by the Agency, in accordance with the requirements of the Act; and WHEREAS, the City also desires to covenant to provide continuing disclosure in connection with the Series 1998 Bonds in accordance with Securities and Exchange Commission Rule 15c2-12 (the "Rule"). 3 DOA:[04548.DOCS.MIAl80298]CITY _ RESO-3 NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA: Section 1. The above recitals are incorporated herein as findings. All terms used in capitalized form herein and not defmed shall have the meanings set forth in the Bond Resolution (including the Series 1998 Agency Resolution) and the Supplemental Revenues Resolution. Section 2. This Resolution is adopted pursuant to the Act and Chapter 166, Part II, Florida Statutes, as amended, and other applicable provisions of law. Section 3. In consideration of the acceptance of the Bonds by those who shall own the same from time to time and the issuance of the Series 1998 Bond Insurance Policy and the Series 1998 Reserve Policy by MBIA, this Resolution shall be deemed to constitute a contract between the City, MBIA and the owners of the Bonds and the covenants and agreements herein set forth to be performed by the City shall be for the benefit, protection and security of MBIA and the owners of any and all such Bonds, all of which Bonds shall be of equal rank and without preference, priority or distinction of any of the Bonds over any other of the Bonds; provided, however, that the covenants contained in Section 5 below shall be solely for the benefit of MBIA. Section 4. Subject to the release provisions of Section 7 of the Supplemental Revenues Resolution, the City hereby confirms the pledge and application of Supplemental Revenues in connection with Bonds issued under the Bond Resolution from time to time as provided in the Supplemental Revenues Resolution. Section 5. Subject to the release provisions of Section 7 of the Supplemental Revenues Resolution, and solely for the benefit of MBIA: 4 DOA:[04S48.DOCS.MIA 180298]CITY _ RESO-3 (a) the City agrees to comply with the covenants for the benefit of MBIA applicable to the City contained in the Series 1998 Agency Resolution and the Series 1998 Insurance Agreement; (b) the City agrees that its obligation to fund deficiencies in the Debt Service Reserve Account from Supplemental Revenues pursuant to Section 5 of the Supplemental Revenues Resolution includes the reimbursement of amounts due MBIA for payments under the Series 1998 Reserve Policy in accordance with the provisions of the Series 1998 Agency Resolution and the Series 1998 Insurance Agreement; and (c) the City pledges and grants a lien upon the Supplemental Revenues to MBIA, subordinate to the lien thereon granted for the benefit of Bondholders, Credit Providers and Liquidity Providers, in order to secure the payment obligations to MBIA described in clause (b) above. The City's obligation to make the payments described in (b) above and the pledge and lien granted under this clause (c) are (i) a "subordinated obligation" under Section 304(G) of the Resort Tax Bond Resolution junior, inferior and subordinate in all respects to the revenue bonds issued by the City pursuant to the Resort Tax Bond Resolution as to lien on and source and security for payment from the Resort Tax Revenues and in all other respects and (ii) junior, inferior and subordinate in all respects to the Bonds and any Supplemental Revenues Bonds as to lien on and source and security for payment from the Supplemental Revenues and in all other respects. For purposes of Chapter 41, Article VI, Section 41-68(e)(4) of the City Code and that certain Interlocal Agreement entered into between the County, the City, the City of Miami and the Village of Bal Harbour and the Greater Miami Convention and Visitors Bureau, establishing a unified effort in the promotion and marketing of conventions and convention sales in the County, as each may be amended from time to time, the payment obligations of the City described in clause (b) above constitute indebtedness of the City secured by the Resort Tax entitled to priority over all payment obligations thereunder. Section 6. In accordance with the requirements of Sections 163.358(3) and 163.385(1) and (3) of the Act, the issuance by the Agency of (i) the Series 1998A Bonds, in the principal amount not to exceed $40,000,000, and (ii) the Series 1998B Bonds, in the principal amount not to exceed $10,000,000, under the provisions of the Bond Resolution, including the Series 1998 Agency Resolution, is hereby authorized and approved by the Mayor and City Commission of the City. 5 DOA:[04S48.DOCS.MIA180298]CITY _ RESO-3 Section 7. For the benefit of the holders and beneficial owners from time to time of the Series 1998 Bonds, the City agrees, in accordance with the Rule, to provide or cause to be provided such annual financial information and operating data, financial statements and notices, in such manner, as may be required for purposes of paragraph (b)(5) of the Rule. In order to describe and specify certain terms of the City's continuing disclosure agreement, including provisions for enforcement, amendment and termination, the City Finance Director (the "Finance Director") is hereby authorized and directed to enter into, execute and deliver, in the name and on behalf of the City, a Continuing Disclosure Agreement (the "Series 1998 Continuing Disclosure Agreement") with the Agency and the Trustee, in substantially the form presented at the meeting at which this Resolution was considered, subject to such changes, modifications, insertions and omissions and such filling-in of blanks therein as may be determined and approved by the Finance Director, after consultation with the City Attorney. The execution of the Series 1998 Continuing Disclosure Agreement, for and on behalf of the City by the Finance Director, shall be deemed conclusive evidence of the City's approval of the Series 1998 Continuing Disclosure Agreement. Notwithstanding any other provisions of the Bond Resolution, the Supplemental Revenues Resolution or this Resolution, any failure by the City or the Agency to comply with any provisions of the Series 1998 Continuing Disclosure Agreement shall not constitute a default under the Bond Resolution, the Supplemental Revenues Resolution or hereunder and the remedies therefor shall be solely as provided in the Series 1998 Continuing Disclosure Agreement. The Finance Director is further authorized and directed to establish procedures in order to ensure compliance by the City with the Series 1998 Continuing Disclosure Agreement, including the timely provision of information and notices. Prior to making any filing in 6 DOA: [04548. DOCS .MIAl80298]CITY _ RESO-3 accordance with such agreement, the Finance Director shall consult with, as appropriate, the City Attorney or the City's bond counsel. The Finance Director, acting in the name and on behalf of the City, shall be entitled to rely upon any legal advice provided by the City Attorney or the City's bond counsel in determining whether a filing should be made. Section 8. Nothing in this resolution shall be construed as constituting a pledge of the City's ad valorem taxing power or of its full faith and credit. The obligations of the City under the Supplemental Revenues Resolution and hereunder shall be a limited obligation of the City payable solely from the Supplemental Revenues pledged under the Supplemental Revenues Resolution and hereunder. Section 9. The officers and employees of the City are hereby authorized and directed to take all other necessary actions and execute all necessary documents to carry out the provisions of this Resolution and provide for the issuance of the Series 1998 Bonds by the Agency. Section 10. This Resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED this 1 s t day of July ,1998. ~ Mayor (SEAL) ATT~T: I i /\ ,; !', I I L\ L ",,'V - J \ '-' CitY Clerk illltell VI, (, L. '- APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION 1If, ~~CL It)' 1tomey J4tL 7 DOA:[04548.DOCS.MIAI80298]CITY _ RESO-3 iY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 ):\\cLmiam i-beach. fl. us :ITY OF MIAMI BEACH TO: FROM: SUBJECT: COMMISSION MEMORANDUM NO. Y <../ 1--9't Mayor Neisen Kasdin and Members of the City Commission DATE: July 1, 1998 Sergio Rodriguez City Manager A RESOLU I OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, REGARDING A CERTAIN GEOGRAPHIC AREA WITHIN THE CITY OF MIAMI BEACH CALLED THE CITY CENTER /HISTORIC CONVENTION VILLAGE REDEVELOPMENT AND BOUNDED ON THE EAST BY THE ATLANTIC OCEAN, ON THE NORTH BY 24TH STREET, ON THE WEST BY WEST A VENUE AND ON THE SOUTH BY 14TH LANE; CONFIRMING THE PLEDGE FOR THE BENEFIT OF ALL BONDS (AS DEFINED HEREIN) OF PROCEEDS OF THE RESORT TAX LEVIED BY THE CITY TO THE EXTENT PROVIDED IN RESOLUTION NO. 94-21008 ADOPTED BY THE CITY ON JANUARY 5, 1994; AUTHORIZING THE ISSUANCE BY THE MIAMI BEACH REDEVELOPMENT AGENCY OF NOT MORE THAN $40,000,000 TAX INCREMENT REVENUE BONDS, TAXABLE SERIES 1998A (CITY CENTER/HISTORIC CONVENTION VILLAGE), AND NOT MORE THAN $10,000,000 TAX INCREMENT REVENUE BONDS, SERIES 1998B (CITY CENTER/HISTORIC CONVENTION VILLAGE), IN ACCORDANCE WITH THE REQUIREMENTS OF CHAPTER 163, PART III, FLORIDA STATUTES, AS AMENDED; COVENANTING TO PROVIDE CONTINUING DISCLOSURE IN CONNECTION WITH SAID SERIES 1998 BONDS IN ACCORDANCE WITH SECURITIES AND EXCHANGE COMMISSION RULE 15c2-12 AND AUTHORIZING THE FINANCE DIRECTOR TO EXECUTE AND DELIVER AN AGREEMENT WITH RESPECT THERETO; AND AUTHORIZING OFFICERS AND EMPLOYEES OF THE CITY TO TAKE ALL NECESSARY ACTIONS IN CONNECTION THEREWITH. RECOMMENDATION Adopt the Resolution. FUNDING The bonds are primarily payable from the Net Trust Fund Revenues received by the Miami Beach Redevelopment Agency (the Agency) from the City Center/Historic Convention Village Redevelopment and a portion of the resort tax received by the City. AGENDA ITEM-B..J.K DATE i-l-9..a BACKGROUND The Agency has previously issued two series of bonds: (1) $25,000,000 Tax Increment Bonds Series 1993; and (2) $37,500,000 Tax Increment Bonds, Series 1996A and $7,705,000 Tax Increment Bonds, Series 1996B for the purpose of providing funds for the acquisition and clearing of certain property and the construction of certain public improvements for, and related to, the Convention Hotel(s). The Agency now intends to issue a third series of bonds in a principal amount not to exceed $50,000,000. ANAL YSIS The purpose of these bonds will be to: reimburse the City for advances plus interest made to the Agency; to pay for the acquisition of property for, and development of, certain portions of the cultural center facilities to be located in the Redevelopment Area and to pay for additional public improvements within the Redevelopment Area in accordance with the Redevelopment Plan. The advances from the City were made pursuant to a line of credit, in the amount of $20,000,000, authorized by the Mayor and Commission on November 20, 1996. The advances, totaling $20,000,000, were used for the acquisition of property for the development of the Royal Palm Crowne Plaza Hotel; the completion of development and construction of certain public areas of the Loews Miami Beach Hotel; the completion of the development and construction of a public parking garage within the Redevelopment Area and for the acquisition of property for, and development and construction of, a portion of certain cultural center facilities within the Redevelopment Area. In an effort to reduce the need for funds from the City's resort tax revenues, this financing has been structured to provide three years of capitalized interest. We have aggressively pursued insurance for this issue, (prior issues were not insured) and anticipate that this will help us achieve substantial savings in annual interest costs as a result. Additionally, if possible, the structure will include the use of a surety in lieu of a fully funded debt service reserve fund. In addition, a copy of the Miami Beach Redevelopment Agency's Series 1998 Bond Resolution is attached as Exhibit A, and a copy of the Continuing Disclosure Agreement is attached hereto as Exhibit B. CONCLUSION It is recommended that the Mayor and Commission adopt the attached resolution authorizing: the issuance by the Miami Beach Redevelopment Agency of not more than $50,000,000 Tax Increment Revenue Bonds in accordance with Chapter 163, Part III, Florida Statutes; the Finance Director to execute and deliver an agreement with respect thereto; and authorizing officers and employees of the City to take all necessary actions in connection therewith. ') '~\j S~-RDW Attachment EXHIBIT A SERIES 1998 AGENCY RESOLUTION DOA:[04S48.DOCS.MIAl80298]CITY _ RESO-3 RESOLUTION NO. A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY AUTHORIZING ISSUANCE OF NOT MORE THAN $40,000,000 IN PRINCIPAL AMOUNT OF MIAMI BEACH REDEVELOPMENT AGENCY TAX INCREMENT REVENUE BONDS, TAXABLE SERIES 1998A (CITY CENTER/HISTORIC CONVENTION VILLAGE), AND NOT MORE THAN $10,000,000 IN PRINCIPAL AMOUNT OF MIAMI BEACH REDEVELOPMENT AGENCY TAX INCREMENT REVENUE BONDS, SERIES 1998B (CITY CENTER/HISTORIC CONVENTION VILLAGE), FOR THE PURPOSE OF FUNDING CERTAIN CAPITAL IMPROVEMENTS IN CONNECTION WITH THE AGENCY'S REDEVELOPMENT PLAN FOR THE CITY CENTER/HISTORIC CONVENTION VILLAGE REDEVELOPMENT AND REVITALIZATION AREA, INCLUDING REPAYMENT OF A LOAN, FUNDING ANY NECESSARY DEPOSIT TO THE DEBT SERVICE RESERVE ACCOUNT AND PAYING COSTS OF ISSUANCE, ALL PURSUANT TO SECTION 304(H) OF RESOLUTION NO. 150-94 ADOPTED BY THE AGENCY ON JANUARY 5, 1994; PROVIDING THAT SAID SERIES 1998 BONDS AND INTEREST THEREON SHALL BE PAY ABLE SOLELY FROM PLEDGED FUNDS; PROVIDING CERTAIN DETAILS OF THE SERIES 1998 BONDS; DELEGATING OTHER DETAILS AND MATTERS IN CONNECTION WITH THE ISSUANCE OF THE SERIES 1998 BONDS TO THE CHAIRMAN, WITHIN THE LIMITATIONS AND RESTRICTIONS STATED HEREIN; AUTHORIZING A BOOK-ENTRY REGISTRATION SYSTEM FOR THE SERIES 1998 BONDS; AUTHORIZING THE NEGOTIATED SALE AND AWARD BY THE CHAIRMAN OF THE SERIES 1998 BONDS TO THE UNDERWRITERS, WITHIN THE LIMITATIONS AND RESTRICTIONS STATED HEREIN; APPROVING THE FORM OF AND AUTHORIZING THE CHAIRMAN TO EXECUTE AND DELIVER A BOND PURCHASE AGREEMENT; APPROVING THE FORM OF AND DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT AND OFFICIAL STATEMENT AND AUTHORIZING THE EXECUTION AND DELIVERY OF THE OFFICIAL STATEMENT; COVENANTING TO PROVIDE CONTINUING DISCLOSURE IN CONNECTION WITH THE SERIES 1998 BONDS IN ACCORDANCE WITH SECURITIES AND EXCHANGE COMMISSION RULE 15c2-12 AND AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE AND DELIVER AN AGREEMENT WITH RESPECT THERETO; PROVIDING FOR A CREDIT FACILITY FOR THE SERIES 1998 BONDS; PERMITTING THE SATISFACTION OF ALL OR A PORTION OF THE RESERVE ACCOUNT REQUIREMENT WITH A RESERVE ACCOUNT INSURANCE POLICY AND APPROVING THE FORM OF AND AUTHORIZING THE CHAIRMAN TO EXECUTE AND DELIVER AN INSURANCE AGREEMENT WITH THE PROVIDER THEREOF; PROVIDING COVENANTS FOR THE PROVIDER OF SUCH CREDIT FACILITY AND/OR RESERVE ACCOUNT DOA: [04548.DOCS.MlAl80298]AUTH-RESO-3 INSURANCE POLICY; AND AUTHORIZING OFFICERS AND EMPLOYEES OF THE AGENCY TO TAKE ALL NECESSARY ACTIONS IN CONNECTION WITH THE SALE AND DELIVERY OF THE SERIES 1998 BONDS AND OTHER RELATED MA TIERS. WHEREAS, the Miami Beach Redevelopment Agency (the "Agency") has heretofore issued its (i) $25,000,000 Miami Beach Redevelopment Agency Tax Increment Revenue Bonds, Series 1993 (City Center/Historic Convention Village), (ii) $37,500,000 Miami Beach Redevelopment Agency Tax Increment Revenue Bonds, Taxable Series 1996A (City Center/Historic Convention Village) and (Hi) $7,705,000 Miami Beach Redevelopment Agency Tax Increment Revenue Bonds, Series 1996B (City Center/Historic Convention Village) (collectively, the "Prior Bonds "), to fund the acquisition and clearing of certain property and the construction of certain public improvements (collectively, the "Prior Projects") in connection with the Agency's redevelopment plan (the "Redevelopment Plan") for that portion of the City of Miami Beach, Florida (the "City") known as the "City Center/Historic Convention Village Redevelopment and Revitalization Area" (the "Redevelopment Area"), said Prior Bonds having been issued pursuant to Resolution No. 150-94, adopted by the Agency on January 5, 1994, as supplemented (as amended and supplemented from time to time, the "Bond Resolution") and Resolution No. 94-21008, adopted by the City on January 5, 1994, as supplemented; and WHEREAS, the Agency now desires to finance the completion of the Prior Projects, the acquisition and clearing of certain additional property and the development and construction of certain additional public improvements in connection with the Redevelopment Plan, as more particularly described in Exhibit A attached hereto and made a part hereof (collectively, the "Series 1998 Redevelopment Project"), including repayment of a $20,000,000 interim loan from the City to fund a portion of the Series 1998 Redevelopment Project (the "City Loan"); and 2 DOA: [04548.DOCS.MIAl80298]A UTH-RESO-3 WHEREAS, Section 304(H) of the Bond Resolution provides for the issuance of additional parity bonds for the purpose of financing community redevelopment projects undertaken by the Agency pursuant to the Redevelopment Plan within the Redevelopment Area in accordance with the Act (as such term is defined in the Bond Resolution) ("Redevelopment Projects"); and WHEREAS, the Series 1998 Redevelopment Project constitutes a Redevelopment Project under the Bond Resolution; and WHEREAS, the Agency has determined that it is desirable to issue additional parity bonds (collectively, the "Series 1998 Bonds") pursuant to the provisions of Section 304(H) of the Bond Resolution and this Resolution for the purpose of providing funds, together with any other available funds, to finance the Series 1998 Redevelopment Project, including repayment of the City Loan, to fund any necessary deposit to the Debt Service Reserve Account (as defined in the Bond Resolution) and to pay costs of issuance thereof; and WHEREAS, the Taxable Bond Act of 1987, being Chapter 159, Part VII, Florida Statutes, as amended (the "Taxable Bond Act"), provides for the issuance by governmental units, including the Agency, of bonds the interest on which is not excludable from gross income for federal income tax purposes; and WHEREAS, as a result of the provisions of the Internal Revenue Code of 1986, as amended (the "Code"), it is necessary to issue (i) a portion of the Series 1998 Bonds as bonds the interest on which is not excludable from gross income for federal income tax purposes (the "Series 1998A Bonds") and (ii) the balance of the Series 1998 Bonds as bonds the interest on which is excludable from gross income for federal income tax purposes (the "Series 1998B Bonds"); and 3 DOA: [04S48.DOCS.MIAl80298]AUTH-RESO-3 WHEREAS, the Chairman and Members of the Agency (the "Commission") have determined that it is in the best interest of the Agency to delegate to the Chairman the determination of various terms of the Series 1998 Bonds and their sale and other actions in connection with the issuance of the Series 1998 Bonds, all as provided and subject to the limitations contained herein; and WHEREAS, the Agency has determined that due to the character of the Series 1998 Bonds, current favorable market conditions, time constraints, the uncertainty inherent in a competitive bidding process and the recommendations of Dain Rauscher Incorporated, the financial advisor to the Agency in connection with the issuance of the Series 1998 Bonds (the "Financial Advisor"), it is in the best interest of the Agency to authorize the negotiated sale of the Series 1998 Bonds; and WHEREAS, based upon the recommendations of the Financial Advisor, the Agency has further determined to secure two separate financial guaranty insurance policies guaranteeing the scheduled payment of principal of and interest on the corresponding Series of the Series 1998 Bonds (collectively, the "Series 1998 Bond Insurance Policy") and to the extent so determined by the Chairman in accordance with the provisions of this Resolution, a debt service reserve fund surety bond for deposit to the credit of the Debt Service Reserve Account in satisfaction of all or any portion of the Reserve Account Requirement (as defined in the Bond Resolution) (the "Series 1998 Reserve Policy") from MBIA Insurance Corporation ("MBIA"); and WHEREAS, each of the Series 1998 Bond Insurance Policy shall constitute a Credit Facility under the Bond Resolution and, to the extent all or any portion of the Reserve Account Requirement is satisfied with the Series 1998 Reserve Policy, the Series 1998 Reserve Policy shall constitute a Reserve Account Insurance Policy under the Bond Resolution; and 4 DOA:[04S48.DOCS.MlAl80298]AUTH-RESO-3 WHEREAS, the Commission has found and detennined that the issuance of the Series 1998 Bonds and the undertaking of the Series 1998 Redevelopment Project will serve a valid public purpose; NOW, THEREFORE, BE IT RESOLVED BY THE CHAIRMAN AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY: Section 1. The above recitals are incorporated herein as findings. This Resolution supplements the Bond Resolution. All tenns used in capitalized fonn herein and not defmed shall have the meanings set forth in the Bond Resolution. Section 2. Two Series of additional parity Bonds of the Agency are authorized to be issued pursuant to Section 304(H) of the Bond Resolution and the authority granted to the Agency by the Act, including with respect to the Series 1998A Bonds, the Taxable Act. The Series 1998A Bonds shall be issued in a principal amount not to exceed $40,000,000, shall be designated "Miami Beach Redevelopment Agency Tax Increment Revenue Bonds, Taxable Series 1998A (City Center/Historic Convention Village)" and shall be issued for the purpose of providing funds, together with other available funds, to finance the portion of the Series 1998 Redevelopment Project described in Part I of Exhibit A (the "Series 1998A Redevelopment Project"), including repayment of any portion of the City Loan related thereto, to fund any necessary deposit to the Debt Service Reserve Account and to pay costs of issuance thereof. The Series 1998B Bonds shall be issued in a principal amount not to exceed $10,000,000, shall be designated "Miami Beach Redevelopment Agency Tax Increment Revenue Bonds, Series 1998B (City Center/Historic Convention Village)" and shall be issued for the purpose of providing funds, together with other available funds, to finance the portion of the Series 1998 Redevelopment Project described in Part II of Exhibit A (the "Series 1998B Redevelopment 5 DOA:[04548.DOCS.MIAl80298]AUTH-RESO-3 Project"), including repayment of any portion of the City Loan related thereto, to fund any necessary deposit to the Debt Service Reserve Account and to pay costs of issuance thereof. Each Series of the Series 1998 Bonds shall be issued in fully registered form as provided in Section 202 of the Bond Resolution, shall be in the denominations of $5,000 or any integral multiple thereof, and shall be dated and issued at such time, shall be in the form of Serial Bonds and/or Term Bonds, shall have such Interest Payment Dates, shall bear interest at such rates, but not to exceed 8.50% per annum with respect to the Series 1998A Bonds and 6.50% per annum with respect to the Series 1998B Bonds, shall be stated to mature, but not later than December 31, 2022, as to any Term Bonds, shall have Amortization Requirements payable in such amounts and on such dates, and shall be subject to redemption prior to maturity, all as shall be specified in a certificate of the Chairman executed prior to or at the time of the sale of the Series 1998 Bonds (the "Series 1998 Chairman's Certificate"). Term Bonds, if any, will be callable at par with accrued interest, without premium, each year in amounts equal to the respective Amortization Requirements therefor. Section 3. In accordance with the provisions of the Bond Resolution, the Series 1998 Bonds shall be limited obligations of the Agency payable solely from the Pledged Funds which are pledged to the payment thereof in the manner and to the extent provided in the Bond Resolution, and nothing shall be construed as obligating the Agency or the City to pay the principal, interest and premium, if any, thereon except from the Pledged Funds or as pledging the full faith and credit of the Agency or the City or as obligating the Agency or the City, directly or indirectly or contingently, to levy or pledge any form of taxation whatever therefor. Section 4. It is hereby found and determined that due to the character of the Series 1998 Bonds, current favorable market conditions, time constraints, the uncertainty inherent in a 6 DOA: [04548.DOCS.MIAl80298]AUTH-RESO.3 competitive bidding process and the recommendations of the Financial Advisor, the negotiated sale of the Series 1998 Bonds is in the best interest of the Agency. The negotiated sale of the Series 1998 Bonds to PaineWebber Incorporated (the "Senior Managing Underwriter") on behalf of itself and Prudential Securities Incorporated and William R. Hough & Co. (collectively with the Senior Managing Underwriter, the "Underwriters") is hereby authorized at a purchase price determined in such a fashion so that the total compensation to be derived by the Underwriters in connection with the public offering of the Series 1998 Bonds will not exceed 2 % of the aggregate principal amount thereof. The Chairman, after consultation with the Financial Advisor and the Executive Director, is hereby authorized to award the Series 1998 Bonds to the Underwriters at a price determined in accordance with the preceding sentence and as shall be further set forth in the Series 1998 Bond Purchase Agreement (as hereinafter defmed). The execution and delivery of the Series 1998 Bond Purchase Agreement for and on behalf of the Agency by the Chairman shall be conclusive evidence of the Agency's acceptance of the Underwriters' proposal to purchase the Series 1998 Bonds. Section 5. The Chairman, after consultation with the Financial Advisor and the Executive Director, with respect to each Series of Series 1998 Bonds, is hereby authorized to determine the principal amount of Series 1998 Bonds to be issued, the date of the Series 1998 Bonds and the time of issuance thereof, the Interest Payment Dates therefor, the maturities and dates upon which Amortization Requirements are payable, but not later than December 31, 2022, the redemption features thereof and the principal amounts of the Serial Bond maturities and the Term Bond Amortization Requirements, all of which shall be set forth in the Series 1998 Chairman's Certificate. The Chairman, after consultation with the Financial Advisor and the Executive Director, is also hereby authorized to determine the interest rates for the Series 1998 7 DOA: [04S48.DOCS.MIAl80298]AUTH-RESO-3 Bonds, which interest rates shall be set forth in the Series 1998 Chairman's Certificate and shall not exceed the limits hereinabove set forth. Section 6. The Commission hereby authorizes the Chairman to execute and deliver a Bond Purchase Agreement for the Series 1998 Bonds (the "Series 1998 Bond Purchase Agreement") for and on behalf of the Agency, in substantially the form presented at the meeting at which this Resolution was considered, subject to such changes, modifications, insertions and omissions and such filling-in of blanks therein as may be determined and approved by the Chairman, after consultation with the Executive Director and General Counsel of the Agency. The execution of the Series 1998 Bond Purchase Agreement for and on behalf of the Agency by the Chairman shall be conclusive evidence of the Agency's approval of the Bond Purchase Agreement. The Registrar is hereby authorized and directed to authenticate the Series 1998 Bonds and the Executive Director is hereby authorized to cause the Series 1998 Bonds to be delivered to or upon the order of the Underwriters upon payment of the purchase price, as shall be set forth in the Series 1998 Bond Purchase Agreement, and satisfaction of the conditions contained in Section 304(H) of the Bond Resolution. Section 7. The proposed Preliminary Official Statement (the "Series 1998 Preliminary Official Statement") and Official Statement (the "Series 1998 Official Statement") in connection with the issuance of the Series 1998 Bonds are hereby approved in substantially the form of the Series 1998 Preliminary Official Statement presented at the meeting at which this Resolution was considered, subject to such changes, modifications, insertions and omissions and such filling-in of blanks therein as may be determined and approved by the Chairman, after consultation with the Executive Director and General Counsel of the Agency. The execution of the Official Statement, for and on behalf of the Agency by the Chairman shall be conclusive evidence of the 8 DOA:[04S48.00cS.MIAl80298]AUTH-RESO-3 Agency's approval of the Series 1998 Preliminary Official Statement and the Series 1998 Official Statement. The distribution of said Series 1998 Preliminary Official Statement and Series 1998 Official Statement in connection with the marketing of the Series 1998 Bonds and the execution and delivery of the Series 1998 Official Statement by the Chairman are hereby authorized. The Chairman or his designee after consultation with the Executive Director and General Counsel of the Agency, is hereby authorized to make any necessary certifications to the Underwriters regarding a near final or deemed final Series 1998 Official Statement, if and to the extent required by Rule 15c2-12 of the United States Securities and Exchange Commission (the "Rule"). Section 8. The proceeds of each Series of the Series 1998 Bonds (including accrued interest, if any) shall be applied as provided in Section 303(b) of the Bond Resolution and a certificate of the Executive Director delivered concurrently with the issuance of the Series 1998 Bonds. With respect to each Series of the Series 1998 Bonds, there are hereby created accounts within each of the Acquisition and Construction Fund and the Cost of Issuance Fund established under the Bond Resolution designated as the "Series 1998A Account" and the "Series 1998B Account". Proceeds of each Series of the Series 1998 Bonds for deposit to the credit of the Acquisition and Construction Fund and the Cost of Issuance Fund shall be deposited in the applicable accounts hereinabove created in accordance with clauses (2) and (4) of Section 303(b) of the Bond Resolution and disbursed pursuant to Section 303 of the Bond Resolution. Section 9. Upon issuance of the Series 1998 Bonds and solely for accounting purposes, the Trustee is hereby authorized to establish separate subaccounts with respect to each Series of Bonds Outstanding under the Bond Resolution within each account of the Sinking Fund in order 9 DOA:(04548.00CS.MIAl80298]AUTH-RESO-3 to permit compliance with the arbitrage rebate requirements under the Code relating to each Series of tax-exempt Bonds issued under the Bond Resolution. Section 10. The Series 1998 Bonds shall be executed in the form and manner provided in the Bond Resolution. The Series 1998 Bonds are hereby authorized to be issued initially in book-entry form and registered in the name of The Depository Trust Company, New York, New York ("DTC"), or its nominee which will act as securities depository for the Series 1998 Bonds. The Executive Director is hereby authorized and directed to execute any necessary letters of representations with DTC and, notwithstanding the provisions of the Bond Resolution, to do all other things, comply with all requirements and execute all other such documents as are incidental to such book-entry system. In the event a book-entry system for the Series 1998 Bonds ceases to be in effect, the Series 1998 Bonds shall be issued in fully registered form without coupons. Section 11. For the benefit of the holders and beneficial owners from time to time of the Series 1998 Bonds, the Agency agrees, in accordance with the Rule, to provide or cause to be provided such annual financial information and operating data, financial statements and notices, in such manner, as may be required for purposes of paragraph (b)(5) of the Rule. In order to describe and specify certain terms of the Agency's continuing disclosure agreement, including provisions for enforcement, amendment and termination, the Executive Director is hereby authorized and directed to enter into, execute and deliver, in the name and on behalf of the Agency, a Continuing Disclosure Agreement (the "Series 1998 Continuing Disclosure Agreement") with the City and the Trustee, in substantially the form presented at the meeting at which this Resolution was considered, subject to such changes, modifications, insertions and omissions and such filling-in of blanks therein as may be determined and approved by the Executive Director, after consultation with General Counsel of the Agency. The execution of 10 DOA: [04548. DOCS .MIA 180298]AUTH-RESO-3 the Series 1998 Continuing Disclosure Agreement, for and on behalf of the Agency by the Executive Director, shall be deemed conclusive evidence of the Agency's approval of the Series 1998 Continuing Disclosure Agreement. Notwithstanding any other provisions of the Bond Resolution or this Resolution, any failure by the Agency or the City to comply with any provisions of the Series 1998 Continuing Disclosure Agreement shall not constitute a default under the Bond Resolution and the remedies therefor shall be solely as provided in the Series 1998 Continuing Disclosure Agreement. The Executive Director is further authorized and directed to establish, or cause to be established, procedures in order to ensure compliance by the Agency with the Series 1998 Continuing Disclosure Agreement, including the timely provision of information and notices. Prior to making any filing in accordance with such agreement, the Executive Director shall consult with, as appropriate, General Counsel of the Agency or the Agency's bond counsel. The Executive Director, acting in the name and on behalf of the Agency, shall be entitled to rely upon any legal advice provided by General Counsel of the Agency or the Agency's bond counsel in determining whether a filing should be made. Section 12. The Agency is hereby authorized to secure the Series 1998 Bond Insurance Policy guaranteeing the scheduled payment of principal of and interest on the Series 1998 Bonds and to pay the premiums with respect thereto. Each Series 1998 Bond Insurance Policy shall constitute a Credit Facility under the Bond Resolution. For so long as the Series 1998 Bond Insurance Policy is in effect and MBIA has not defaulted in its obligations thereunder, and notwithstanding any provisions to the contrary contained in the Bond Resolution, the Agency, the Trustee, the Paying Agent, the Registrar and 11 DOA:[04548.DOCS.MIAl80298]AUTH-RESO-3 the Holders of the Series 1998 Bonds, as applicable, covenant and agree, but solely for the benefit of MBIA, as follows: (a) In connection with the issuance of additional parity Bonds under the Bond Resolution, the Agency shall deliver to MBIA a copy of the disclosure document, if any, circulated with respect to such additional parity Bonds. (b) MBIA will be deemed the Bondholder of all Series 1998 Bonds under the Bond Resolution, in lieu of the registered owners thereof, for purposes of (i) consenting to the adoption of any supplemental resolution which requires the consent of Bondholders pursuant to the Bond Resolution and (ii) exercising any rights and remedies granted to the Bondholders of the Series 1998 Bonds under the Bond Resolution upon the occurrence of a default thereunder; provided, however, that MBIA shall not have the right to decrease the amount of principal or interest due and owing on the Series 1998 Bonds or extend the dates of payment of installments of principal of and interest on the Series 1998 Bonds. (c) The Agency shall provide MBIA and Standard & Poor's Ratings Services ("S&P") with a copy of all supplemental resolutions adopted pursuant to the Bond Resolution. (d) Defeasance Obligations in connection with any defeasance of the Series 1998 Bonds shall be limited to: 1. U.S. Treasury Certificates, Notes and Bonds (including State and Local Government Series--" SLGS "). 2. Direct obligations of the Treasury which have been stripped by the Treasury itself, CATS, TIGRS and similar securities. 3. The interest component of Resolution Funding Corp. securities ("REFCORP") which have been stripped by request to the Federal Reserve Bank of New York in book entry fonn. 4. Pre-refunded municipal bonds rated "Aaa" by Moody's Investors Service, Inc. ("Moody's") and "AAA" by S&P. If however, the issue is only rated by S&P (Le., there is no Moody's rating), then the pre-refunded bonds must have been pre-refunded with cash, direct U.S. or U.S. guaranteed obligations, or AAA rated pre-refunded municipals. 5. Obligations issued by the following agencies which are backed by the full faith and credit of the U. S. : 12 DOA:[04548.00CS .MIA 180298]AUTH-RESO-3 a. u.s. Export-Import Bank (Eximbank) Direct obligations or fully guaranteed certificates of beneficial ownership b. Farmers Home Administration (FmHA) Certificates of beneficial ownership c. Federal Financing Bank d. General Services Administration Participation certificates e. U.S. Maritime Administration Guaranteed Title XI financing f. U.S. Department of Housing and Urban Development (HUD) Project Notes Local Authority Bonds New Communities Debentures - U.S. government guaranteed debentures U.S. Public Housing Notes and Bonds - U.S. government guaranteed public housing notes and bonds. (e) Permitted Investments under the Bond Resolution shall be limited to: 1. Direct obligations of the United States of America (including obligations issued or held in book-entry form on the books of the Department of the Treasury, and CATS and TGRS) or obligations the principal of and interest on which are unconditionally guaranteed by the United States of America. 2. Bonds, debentures, notes or other evidence of indebtedness issued or guaranteed by any of the following federal agencies and provided such obligations are backed by the full faith and credit of the United States of America (stripped securities only if they have been stripped by the agency itself) : a. U.S. Export-Import Bank (Eximbank) Direct obligations or fully guaranteed certificates of beneficial ownership b. Farmers Home Administration (FmHA) Certificates of beneficial ownership c. Federal Financing: Bank 13 DOA: [04548. DOCS. MIA 180298]AUTH-RESO-3 d. Federal Housing Administration Debentures (FHA) e. General Services Administration Participation certificates f. Government National Mortgage Association (GNMA or Ginnie Mae) GNMA - guaranteed mortgage-backed bonds GNMA - guaranteed pass-through obligations g. U.S. Maritime Administration Guaranteed Title XI financing h. U.S. Department of Housing and Urban Development (HUD) Project Notes Local Authority Bonds New Communities Debentures - U.S. government guaranteed debentures U.S. Public Housing Notes and Bonds - U.S. government guaranteed public housing notes and bonds. 3. Bonds, debentures, notes or other evidence of indebtedness issued or guaranteed by any of the following non-full faith and credit U.S. government agencies (stripped securities only if they have been stripped by the agency itselt): a. Federal Home Loan Bank System Senior debt obligations b. Federal Home Loan Mortgage C01l'oration (FHLMC or Freddie Mac) Participation Certificates Senior debt obligations c. Federal National Mortgage Association (FNMA or Fannie Mae) Mortgage-backed securities and senior debt obligations d. Student Loan Marketing Association (SLMA or Sallie Mae) Senior debt obligations e. Resolution Funding C01l'. (REFCORP) Obligations f. Farm Credit System Consolidated systemwide bonds and notes 14 DOA:[04548.DOCS.MIAl80298)AUTH-RESO.3 4. Money market funds registered under the Federal Investment Company Act of 1940, whose shares are registered under the Federal Securities Act of 1933, and having a rating by S&P of AAAm-G, AAAm, or Aam and if rated by Moody's, having a rating by Moody's of Aaa, Aal or Aa2. 5. Certificates of deposit secured at all times by collateral described in (1) and/or (2) above. Such certificates must be issued by commercial banks, savings and loan associations or mutual savings banks. The collateral must be held by a third party and the Bondholders must have a perfected first security interest in the collateral. 6. Certificates of deposit, savings accounts, deposit accounts or money market deposits which are fully insured by the Federal Deposit Insurance Corporation. 7. Investment agreements acceptable to MBIA. 8. Commercial paper rated, at the time of purchase, "Prime-I" by Moody's and "A-I" or better by S&P. 9. Bonds or notes issued by any state or municipality which are rated by Moody's and S&P in one of the two highest rating categories assigned by such agencies. 10. Federal funds or bankers acceptances with a maximum term of one year of any bank which has an unsecured, uninsured and unguaranteed obligation rating of "Prime-I" or "A3" or better by Moody's and "A-I" or "A" or better by S&P. 11. Repurchase agreements for 30 days or less which satisfy the following criteria or which exceed 30 days as are otherwise approved by MBIA: 1. Entered into by the Agency or the Trustee, as applicable, with: a. Primary dealers on the Federal Reserve reporting dealer list which are rated A or better by S&P and Moody's. b. Banks rated "A" or above by S&P and Moody's. 2. The repurchase agreement includes the following: a. Securities which are acceptable for transfer are: (1) Direct U.S. government obligations, or 15 DOA: [04548. DOCS .MIAl80298]AUTH-RESO-3 (2) Federal agencies backed by the full faith and credit of the U.S. government (and FNMA & FHLMC). b. The term of the repurchase may be up to 30 days. c. The collateral must be delivered to the Agency, the Trustee or a third party acting as agent simultaneous with payment (perfection by possession of certificated securities). d. Valuation of collateral: (1) The securities must be valued weekly marked-to- market at current market price plus accrued interest; and (2) The value of collateral must be equal to 104 % of the amount of cash transferred by the Agency or the Trustee, as applicable, to the dealer bank or security firm plus accrued interest. If the value of securities held as collateral falls below 104% of the value of the cash transferred by the Agency or the Trustee, as applicable, then additional cash or acceptable securities must be transferred by the dealer bank or security firm. If, however, the securities used as collateral are FNMA or FHLMC, then the value of collateral must equal 105 % . 3. A legal opinion must be delivered to the Agency to the effect that the repurchase agreement meets guidelines under State of Florida law for legal investment of public funds. 12. Any State of Florida administered pool investment fund in which the City is statutorily permitted or required to invest. (t) Investments of moneys held under the Debt Service Reserve Account shall be valued at fair market value, marked to market at least once per year and have maturities not exceeding five (5) years except for investment agreements approved by MBIA. (g) The Trustee, the Paying Agent and the Registrar must each be a commercial bank with trust powers. (h) The Agency shall provide MBIA notice of the resignation or removal of the Trustee, the Paying Agent or the Registrar and the appointment of a successor thereto. 16 DOA: [04548. DOCS .MIA 180298]AUTH-RESO-3 (i) MBIA shall receive copies of all notices required to be delivered to Bondholders of the Series 1998 Bonds under the Bond Resolution and, on an annual basis, copies of the Agency's audited financial statements and annual budget. (j) All notices required to be given to MBIA shall be in writing and shall be sent by registered or certified mail addressed as follows: MBIA Insurance Corporation 113 King Street Armonk, New York 10504 Attention: Insured Portfolio Management (k) The Trustee shall, not later than the third business day preceding each payment date on the Series 1998 Bonds, transfer from moneys on deposit in the applicable Accounts to the Paying Agent the amounts necessary to pay the principal of and interest on the Series 1998 Bonds. In the event that, on the second business day, and again on the business day, prior to the payment date on the Series 1998 Bonds, the Paying Agent has not received sufficient moneys to pay all principal of and interest on the Series 1998 Bonds due on the second following or following, as the case may be, business day, the Paying Agent shall immediately notify MBIA or its designee on the same business day by telephone or telecopy, confirmed in writing by registered or certified mail, of the amount of the deficiency. If the deficiency is made up in whole or in part prior to or on the payment date, the Paying Agent shall so notify MBIA or its designee. In addition, if the Paying Agent has notice that any Bondholder has been required to disgorge payments of principal or interest on the Series 1998 Bonds to a trustee in bankruptcy or creditors or other pursuant to a fmal judgment by a court of competent jurisdiction that such payment constitutes a voidable preference to such Bondholder within the meaning of any applicable bankruptcy laws, then the Paying Agent shall notify MBIA or its designee of such fact by telephone or telegraphic notice, confirmed in writing by registered or certified mail. (1) The Paying Agent is hereby irrevocably designated, appointed, directed and authorized to act as attorney-in-fact for Bondholders of the Series 1998 Bonds as follows: 1. If and to the extent there is a deficiency in amounts required to pay interest on the Series 1998 Bonds, the Paying Agent shall (a) execute and deliver to State Street Bank and Trust Company, N .A., or its successors under the Bond Insurance Policy (the "Insurance Paying Agent"), in form satisfactory to the Insurance Paying Agent, an instrument appointing MBIA as agent for such Bondholders in any legal proceeding related to the payment of such interest and an assignment to MBIA of the claims for interest to which such deficiency relates and which are paid by MBIA, (b) receive as designee of the respective Bondholders (and not as Paying 17 DOA:[04548.DOCS.MIAl80298]AUTH-RESO-3 Agent) in accordance with the tenor of the Series 1998 Bond Insurance Policy payment from the Insurance Paying Agent with respect to the claims for interest so assigned and (c) disburse the same to such respective bondholders; and 2. If and to the extent of a deficiency in amounts required to pay principal of the Series 1998 Bonds, the Paying Agent shall (a) execute and deliver to the Insurance Paying Agent in form satisfactory to the Insurance Paying Agent an instrument appointing MBIA as agent for such Bondholder in any legal proceeding relating to the payment of such principal and assignment to MBIA of any of the Series 1998 Bonds surrendered to the Insurance Paying Agent of so much of the principal amount thereof as has not previously been paid or for which moneys are not held by the Paying Agent and available for such payment (but such assignment shall be delivered only if payment from the Insurance Paying Agent is received), (b) receive as designee of the respective Bondholders (and not as Paying Agent) in accordance with the tenor of the Series 1998 Bond Insurance Policy payment therefor from the Insurance Paying Agent, and (c) disburse the same to such Bondholders. (m) Payments with respect to claims for interest on and principal of Series 1998 Bonds disbursed by the Paying Agent from proceeds of the Series 1998 Bond Insurance Policy shall not be considered to discharge the obligation of the Agency with respect to such Series 1998 Bonds, and MBIA shall become the owner of such unpaid Series 1998 Bonds and claims for the interest in accordance with the tensor of the assignment made to it under the provisions of this section or otherwise. (n) Irrespective of whether any such assignment is executed and delivered, the Agency, the Trustee, the Paying Agent and the Registrar hereby agree for the benefit of MBIA that: 1. They recognize that to the extent MBIA makes payments, directly or indirectly (as by paying through the Paying Agent), on account of principal of or interest on the Series 1998 Bonds, MBIA will be subrogated to the rights of such Bondholders to receive the amount of such principal and interest from the Agency, with interest thereon as provided and solely from the sources stated in the Bond Resolution and the Series 1998 Bonds; and 2. They will accordingly pay to MBIA the amount of such principal and interest (including principal and interest recovered under subparagraph (ii) of the first paragraph of the Series 1998 Bond Insurance Policy, which principal and interest shall be deemed past due and not to have been paid), with interest thereon as provided in the Bond Resolution and the Series 1998 Bonds, but only from the sources and in the manner provided in thei 18 DOA: [04548 , DOCS ,MIA 180298]AUTH-RESO-3 Bond Resolution for the payment of principal of and interest on the Series 1998 Bonds to Bondholders, and will otherwise treat MBIA as the owner of such rights to the amount of such principal and interest. Section 13. The Chairman, based upon the recommendations of the Financial Advisor, is hereby authorized to determine to satisfy all or a portion of the Reserve Account Requirement with the deposit of the Series 1998 Reserve Policy to the credit of the Debt Service Reserve Account, to provide for the payment of the premium with respect thereto and, subject to the provisions of the Bond Resolution, to apply any moneys released from the Debt Service Reserve Account as a result of the deposit of the Series 1998 Reserve Policy therein, all as shall be provided in the Series 1998 Chairman's Certificate. The Commission hereby approves the form of a Financial Guaranty Agreement to be entered into between the Agency and MBIA to the extent the Series 1998 Reserve Policy is deposited to the credit of the Debt Service Reserve Account (the "Series 1998 Insurance Agreement"), a copy of which draft form of Series 1998 Insurance Agreement has been presented at the meeting at which this Series Resolution was considered. To the extent applicable, the Chairman is hereby authorized to execute the Series 1998 Insurance Agreement in substantially the form presented at the meeting at which this Series Resolution was considered, subject to such changes, modifications, insertions and omissions and such filling-in of blanks therein as may be necessary to secure delivery of the Series 1998 Reserve Policy. The execution and delivery by the Chairman of the Series 1998 Insurance Agreement for and on behalf of the Agency shall be conclusive evidence of the Agency's approval of the Series 1998 Insurance Agreement. For so long as the Series 1998 Reserve Policy is in effect and MBIA has not defaulted in its obligations thereunder, and notwithstanding any provisions to the contrary contained in the Bond Resolution, the Agency ~ the Trustee, the Paying Agent, the Registrar and the Holders of 19 DOA:[04S48.DOCS.MIA 180298]AUTH-RESO-3 the Series 1998 Bonds, as applicable, covenant and agree, but solely for the benefit of MBIA, as follows: (a) A Reserve Account Insurance Policy or Reserve Account Letter of Credit shall be limited to (i) those facilities issued by an insurance company rated in the highest rating category by Moody's and S&P and, if rated by A.M. Best & Company, rated in the highest rating category by A.M. Best & Company or (ii) such other facilities authorized under the Bond Resolution and approved by MBIA. (b) Net Trust Fund Revenues shall be applied under the prOVIsIons of Section 304(D)(3) of the Bond Resolution and Supplemental Revenues shall be applied under the provisions of the Supplemental Revenues Resolution first, to reimburse MBIA for any payments made under the Series 1998 Reserve Policy, thereby reinstating the Series 1998 Reserve Policy, and second, for deposit with the Trustee of any cash required to be deposited in the Debt Service Reserve Account after taking into account the amounts available under all Reserve Account Insurance Policies and/or Reserve Account Letters of Credit, including the Series 1998 Reserve Policy; provided, however, that if reimbursements are also due to issuers of other Reserve Account Insurance Policies or Reserve Account Letters of Credit, the reimbursements to MBIA and such other providers shall be paid on a pro-rata basis. (c) The Paying Agent shall deliver a "Demand for Payment" in the form attached to the Series 1998 Reserve Policy at least three days prior to the date on which funds are required. (d) The Paying Agent shall maintain adequate records, verified with MBIA, as to the amount available to be drawn at any given time under the Series 1998 Reserve Policy. In addition, so long as amounts are due and owing to MBIA under the Series 1998 Insurance Agreement, the Agency, the Trustee, the Paying Agent, the Registrar and the Holders of the Series 1998 Bonds, as applicable, covenant and agree, but solely for the benefit of MBIA, as follows: (a) The Agency hereby pledges and grants a lien upon the Pledged Funds, subordinate to the lien thereon granted for the benefit of Bondholders, Credit Providers and Liquidity Providers under the provisions of the Bond Resolution, in order to secure the Agency's payment obligations under the Series 1998 Insurance Agreement. Such payment obligations under the Series 1998 Insurance Agreement are junior, inferior and subordinate in all respects to the Bonds as to 20 DOA: (04548. DOCS .MIA I80298]AUTH-RESO-3 lien on and source and security for payment from the Pledged Funds and in all other respects. (b) The Bond Resolution shall not be discharged until all amounts due and payable to MBIA have been paid in full or provision for their payment in full has been made. (c) The Agency shall maintain adequate records, verified by MBIA, as to the amounts paid and owing to MBIA under the terms of the Series 1998 Insurance Agreement. (d) The Agency shall not optionally redeem any Bonds or apply Net Trust Fund Revenues pursuant to Section 304(D)(5) of the Bond Resolution, other than for the payments required in clauses (1) through (4) of said Section 304(D), unless the Agency is current in all of its payment obligations under the Series 1998 Insurance Agreement. Section 14. The officers, agents and employees of the Agency, Trustee, Registrar and Paying Agent are hereby authorized and directed to do all acts and things required of them by the provisions of the Series 1998 Bonds, the Bond Resolution, the Series 1998 Bond Purchase Agreement, the Series 1998 Continuing Disclosure Agreement, the Series 1998 Bond Insurance Policy, the Series 1998 Reserve Policy, the Series 1998 Insurance Agreement and this Resolution, for the full, punctual and complete performance of all the terms, covenants, provisions and agreements of the Series 1998 Bonds, the Bond Resolution, the Series 1998 Bond Purchase Agreement, the Series 1998 Continuing Disclosure Agreement, the Series 1998 Bond Insurance Policy, the Series 1998 Reserve Policy, the Series 1998 Insurance Agreement and this Resolution. 21 DOA:[04548.DOCS.MIAl80298]AUTH-RESO-3 Section 15. This Resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED this _ day of , 1998. Chairman (Seal) Attest: Secretary 22 DOA:[04S48.DOCS.MIAl80298]AUTH-RESO-3 EXHIBIT A PART I SERIES 1998A REDEVELOPMENT PROJECT 1. Completion of development and construction of certain public areas of the Loews Miami Beach Hotel located in the Redevelopment Area at 1601 Collins Avenue. 2. Completion of development and construction of a public parking garage located in the Redevelopment Area between Washington Avenue and Collins Avenue proximate to 16th Street. 3. Acquisition of property for the development and construction of the Royal Palm Crowne Plaza Resort Hotel to be located in the Redevelopment Area at 15th Street and Collins Avenue. 4. Acquisition of property for and development and construction of a portion of the cultural center facilities to be located in the Redevelopment Area between 20th Street and 23rd Street, proximate to Collins A venue, consisting of Collins Park, a regional library facility, the Miami City Ballet building and a public parking garage. PART II SERIES 1998B REDEVELOPMENT PROJECT 1. Acquisition of property for and development and construction of a portion of the cultural center facilities to be located in the Redevelopment Area between 20th Street and 23rd Street, proximate to Collins A venue, consisting of Collins Park, a regional library facility, the Miami City Ballet building and a public parking garage. 2. Additional public improvements which the Agency by resolution determines to undertake within the Redevelopment Area in accordance with the Redevelopment Plan and which may be funded from proceeds of bonds the interest on which is excludable from gross income for federal income tax purposes. DOA: [04548.DOCS.MIA 180298]AUTH-RESO-3 EXHIBIT A RESOLUTION NO. A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY AUTHORIZING ISSUANCE OF NOT MORE THAN $40,000,000 IN PRINCIPAL AMOUNT OF MIAMI BEACH REDEVELOPMENT AGENCY TAX INCREMENT REVENUE BONDS, TAXABLE SERIES 1998A (CITY CENTER/HISTORIC CONVENTION VILLAGE), AND NOT MORE THAN $10,000,000 IN PRINCIPAL AMOUNT OF MIAMI BEACH REDEVELOPMENT AGENCY TAX INCREMENT REVENUE BONDS, SERIES 1998B (CITY CENTER/HISTORIC CONVENTION VILLAGE), FOR THE PURPOSE OF FUNDING CERTAIN CAPITAL IMPROVEMENTS IN CONNECTION WITH THE AGENCY'S REDEVELOPMENT PLAN FOR THE CITY CENTER/HISTORIC CONVENTION VILLAGE REDEVELOPMENT AND REVITAUZATION AREA, INCLUDING REF A YMENT OF A LOAN, FUNDING ANY NECESSARY DEPOSIT TO THE DEBT SERVICE RESERVE ACCOUNT AND PAYING COSTS OF ISSUANCE, ALL PURSUANT TO SECTION 304(H) OF RESOLUTION NO. 150-94 ADOPTED BY THE AGENCY ON JANUARY 5, 1994; PROVIDING THAT SAID SERIES 1998 BONDS AND INTEREST THEREON SHALL BE PAYABLE SOLELY FROM PLEDGED FUNDS; PROVIDING CERTAIN DETAILS OF THE SERIES 1998 BONDS; DELEGATING OTHER DETAILS AND MATTERS IN CONNECTION WITH THE ISSUANCE OF THE SERIES 1998 BONDS TO THE CHAIRMAN, WITHIN THE UMITATIONS AND RESTRICTIONS STATED HEREIN; AUTHORIZING A BOOK-ENTRY REGISTRATION SYSTEM FOR THE SERIES 1998 BONDS; AUTHORIZING THE NEGOTIATED SALE AND AWARD BY THE CHAIRMAN OF THE SERIES 1998 BONDS TO THE UNDERWRITERS, WITHIN THE UMITATIONS AND RESTRICTIONS STATED HEREIN; APPROVING THE FORM OF AND AUTHORIZING THE CHAIRMAN TO EXECUTE AND DEUVER A BOND PURCHASE AGREEMENT; APPROVING THE FORM OF AND DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT AND OFFICIAL STATEMENT AND AUTHORIZING THE EXECUTION AND DEUVERY OF THE OFFICIAL STATEMENT; COVENANTING TO PROVIDE CONTINillNG DISCLOSURE IN CONNECTION WITH THE SERIES 1998 BONDS IN ACCORDANCE WITH SECURITIES AND EXCHANGE COMMISSION RULE 15c2-12 AND AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE AND DEllVERAN AGREEMENT WITH RESPECT THERETO; PROVIDING FOR A CREDIT FACIllTY FOR THE SERIES 1998 BONDS; PERMIlTING THE SATISFACTION OF ALL OR A PORTION OF THE RESERVE ACCOUNT REQillREMENT WITH A RESERVE ACCOUNT INSURANCE POllCY AND APPROVING THE FORM OF AND AUTHORIZING THE CHAIRMAN TO EXECUTE AND DEllVER AN INSURANCE AGREEMENT WITH THE PROVIDER THEREOF; PROVIDING COVENANTS FOR THE PROVIDER OF SUCH CREDIT FACILITY AND/OR RESERVE ACCOUNT DOA: [04548.00CS.MlA 180298]A UTH-RESO-3 INSURANCE POllCY; AND AUTHORIZING OFFICERS AND EMPLOYEES OF THE AGENCY TO TAKE ALL NECESSARY ACTIONS IN CONNECTION WITH THE SALE AND DELIVERY OF THE SERIES 1998 BONDS AND OTHER RELATED MA TIERS. WHEREAS, the Miami Beach Redevelopment Agency (the "Agency") has heretofore issued its (i) $25,000,000 Miami Beach Redevelopment Agency Tax Increment Revenue Bonds, Series 1993 (City Center/Historic Convention Village), (ii) $37,500,000 Miami Beach Redevelopment Agency Tax Increment Revenue Bonds, Taxable Series 1996A (City Center/Historic Convention Village) and (iii) $7,705,000 Miami Beach Redevelopment Agency Tax Increment Revenue Bonds, Series 1996B (City Center/Historic Convention Village) (collectively, the "Prior Bonds "), to fund the acquisition and clearing of certain property and the construction of certain public improvements (collectively, the "Prior Projects") in connection with the Agency's redevelopment plan (the "Redevelopment Plan") for that portion of the City of Miami Beach, Florida (the "City") known as the "City Center/Historic Convention Village Redevelopment and Revitalization Area" (the "Redevelopment Area"), said Prior Bonds having been issued pursuant to Resolution No. 150-94, adopted by the Agency on January 5, 1994, as supplemented (as amended and supplemented from time to time, the "Bond Resolution") and Resolution No. 94-21008, adopted by the City on January 5, 1994, as supplemented; and WHEREAS, the Agency now desires to fInance the completion of the Prior Projects, the acquisition and clearing of certain additional property and the development and construction of certain additional public improvements in connection with the Redevelopment Plan, as more particularly described in Exhibit A attached hereto and made a part hereof (collectively, the "Series 1998 Redevelopment Project"), including repayment of a $20,000,000 interim loan from the City to fund a portion of the Series 1998 Redevelopment Project (the "City Loan"); and 2 DOA:[04S48.DOCS.MIA18(298)AUTH-RESO-3 WHEREAS, Section 304(H) of the Bond Resolution provides for the issuance of additional parity bonds for the purpose of fInancing community redevelopment projects undertaken by the Agency pursuant to the Redevelopment Plan within the Redevelopment Area in accordance with the Act (as such term is defIned in the Bond Resolution) ("Redevelopment Projects"); and WHEREAS, the Series 1998 Redevelopment Project constitutes a Redevelopment Project under the Bond Resolution; and WHEREAS, the Agency has determined that it is desirable to issue additional parity bonds (collectively, the "Series 1998 Bonds") pursuant to the provisions of Section 304(H) of the Bond Resolution and this Resolution for the purpose of providing funds, together with any other available funds, to fInance the Series 1998 Redevelopment Project, including repayment of the City Loan, to fund any necessary deposit to the Debt Service Reserve Account (as dermed in the Bond Resolution) and to pay costs of issuance thereof; and WHEREAS, the Taxable Bond Act of 1987, being Chapter 159, Part VII, Florida Statutes, as amended (the "Taxable Bond Act"), provides for the issuance by governmental units, including the Agency, of bonds the interest on which is not excludable from gross income for federal income tax purposes; and WHEREAS, as a result of the provisions of the Internal Revenue Code of 1986, as amended (the "Code"), it is necessary to isme (i) a portion of the Series 1998 Bonds as bonds the interest on which is not excludable from gross income for federal income tax purposes (the "Series 1998A Bonds") and (ii) the balance of the Series 1998 Bonds as bonds the interest on which is excludable from gross income for federal income tax purposes (the "Series 1998B Bonds"); and 3 DOA:[04S48.DOCS.MIA18(298)AUTH-RESO-3 WHEREAS, the Chairman and Members of the Agency (the "Commission") have determined that it is in the best interest of the Agency to delegate to the Chairman the determination of various terms of the Series 1998 Bonds and their sale and other actions in connection with the issuance of the Series 1998 Bonds, all as provided and subject to the limitations contained herein; and WHEREAS, the Agency has determined that due to the character of the Series 1998 Bonds, current favorable market conditions, time constraints, the uncertainty inherent in a competitive bidding process and the recommendations of Dain Rauscher Incorporated, the rmancial advisor to the Agency in connection with the issuance of the Series 1998 Bonds (the "Financial Advisor"), it is in the best interest of the Agency to authorize the negotiated sale of the Series 1998 Bonds; and WHEREAS, based upon the recommendations of the Financial Advisor, the Agency has further determined to secure two separate rmancial guaranty insurance policies guaranteeing the scheduled payment of principal of and interest on the corresponding Series of the Series 1998 Bonds (collectively, the "Series 1998 Bond Insurance Policy") and to the extent so determined by the Chairman in accordance with the provisions of this Resolution, a debt service reserve fund surety bond for deposit to the credit of the Debt Service Reserve Account in satisfaction of all or any portion of the Reserve Account Requirement (as dermed in the Bond Resolution) (the "Series 1998 Reserve Policy") from MBIA Insurance Corporation ("MBIA"); and WHEREAS, each of the Series 1998 Bond Insurance Policy shall constitute a Credit Facility under the Bond Resolution and, to the extent all or any portion of the Reserve Account Requirement is satisfied with the Series 1998 Reserve Policy, the Series 1998 Reserve Policy shall constitute a Reserve Account Insurance Policy under the Bond Resolution; and 4 DOA:[04S48.DOCS.MIAI80298]AUTH-RESO-3 WHEREAS, the Commission has found and determined that the issuance of the Series 1998 Bonds and the undertaking of the Series 1998 Redevelopment Project will serve a valid public purpose; NOW, THEREFORE, BE IT RESOLVED BY THE CHAIRMAN AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY: Section 1. The above recitals are incorporated herein as rmdings. This Resolution supplements the Bond Resolution. All terms used in capitalized form herein and not dermed shall have the meanings set forth in the Bond Resolution. Section 2. Two Series of additional parity Bonds of the Agency are authorized to be issued pursuant to Section 304(H) of the Bond Resolution and the authority granted to the Agency by the Act, including with respect to the Series 1998A Bonds, the Taxable Act. The Series 1998A Bonds shall be issued in a principal amount not to exceed $40,000,000, shall be designated "Miami Beach Redevelopment Agency Tax Increment Revenue Bonds, Taxable Series 1998A (City Center/Historic Convention Village)" and shall be issued for the purpose of providing funds, together with other available funds, to fInance the portion of the Series 1998 Redevelopment Project described in Part I of Exhibit A (the "Series 1998A Redevelopment Project"), including repayment of any portion of the City Loan related thereto, to fund any necessary deposit to the Debt Service Reserve Account and to pay costs of issuance thereof. The Series 1998B Bonds shall be issued in a principal amount not to exceed $10,000,000, shall be designated "Miami Beach Redevelopment Agency Tax Increment Revenue Bonds, Series 1998B (City Center/Historic Convention Village)" and shall be issued for the purpose of providing funds, together with other available funds, to rmance the portion of the Series 1998 Redevelopment Project described in Part II of Exhibit A (the "Series 1998B Redevelopment 5 DOA:(04S48.DOCS .MIA180298]AUTH-RESO-3 Project"), including repayment of any portion of the City Loan related thereto, to fund any necessary deposit to the Debt Service Reserve Account and to pay costs of issuance thereof. Each Series of the Series 1998 Bonds shall be issued in fully registered form as provided in Section 202 of the Bond Resolution, shall be in the denominations of $5,000 or any integral multiple thereof, and shall be dated and issued at such time, shall be in the form of Serial Bonds and/or Term Bonds, shall have such Interest Payment Dates, shall bear interest at such rates, but not to exceed 8.50% per annum with respect to the Series 1998A Bonds and 6.50% per annum with respect to the Series 1998B Bonds, shall be stated to mature, but not later than December 31, 2022, as to any Term Bonds, shall have Amortization Requirements payable in such amounts and on such dates, and shall be subject to redemption prior to maturity, all as shall be specifIed in a certifIcate of the Chairman executed prior to or at the time of the sale of the Series 1998 Bonds (the "Series 1998 Chairman's CertifIcate"). Term Bonds, if any, will be callable at par with accrued interest, without premium, each year in amounts equal to the respective Amortization Requirements therefor. Section 3. In accordance with the provisions of the Bond Resolution, the Series 1998 Bonds shall be limited obligations of the Agency payable solely from the Pledged Funds which are pledged to the payment thereof in the manner and to the extent provided in the Bond Resolution, and nothing shall be construed as obligating the Agency or the City to pay the principal, interest and premium, if any, thereon except from the~Pledged Funds or as pledging the full faith and credit of the Agency or the City or as obligating the Agency or the City, directly or indirectly or contingently, to levy or pledge any form of taxation whatever therefor. Section 4. It is hereby found and determined that due to the character of the Series 1998 Bonds, current favorable market conditions, time constraints, the uncertainty inherent in a 6 DOA: [04S48.DOCS.MIA 180298]AUTH-RESO-3 competitive bidding process and the recommendations of the Financial Advisor, the negotiated sale of the Series 1998 Bonds is in the best interest of the Agency. The negotiated sale of the Series 1998 Bonds to PaineWebber Incorporated (the "Senior Managing Underwriter") on behalf of itself and Prudential Securities Incorporated and William R. Hough & Co. (collectively with the Senior Managing Underwriter, the "Underwriters") is hereby authorized at a purchase price determined in such a fashion so that the total compensation to be derived by the Underwriters in connection with the public offering of the Series 1998 Bonds will not exceed 2 % of the aggregate principal amount thereof. The Chairman, after consultation with the Financial Advisor and the Executive Director, is hereby authorized to award the Series 1998 Bonds to the Underwriters at a price determined in accordance with the preceding sentence and as shall be further set forth in the Series 1998 Bond Purchase Agreement (as hereinafter dermed). The execution and delivery of the Series 1998 Bond Purchase Agreement for and on behalf of the Agency by the Chairman shall be conclusive evidence of the Agency's acceptance of the Underwriters' proposal to purchase the Series 1998 Bonds. Section 5. The Chairman, after consultation with the Financial Advisor and the Executive Director, with respect to each Series of Series 1998 Bonds, is hereby authorized to determine the principal amount of Series 1998 Bonds to be issued, the date of the Series 1998 Bonds and the time of issuance thereof, the Interest Payment Dates therefor, the maturities and dates upon which Amortization Requirements are payable, but not later than December 31, 2022, the redemption features thereof and the principal amounts of the Serial Bond maturities and the Term Bond Amortization Requirements, all of which shall be set forth in the Series 1998 Chairman's CertifIcate. The Chairman, after consultation with the Financial Advisor and the Executive Director, is also hereby authorized to determine the interest rates for the Series 1998 7 DOA:(04S48.DOCS.MIA180298)AUTH-RESO-3 Bonds, which interest rates shall be set forth in the Series 1998 Chairman's CertifIcate and shall not exceed the limits hereinabove set forth. Section 6. The Commission hereby authorizes the Chairman to execute and deliver a Bond Purchase Agreement for the Series 1998 Bonds (the "Series 1998 Bond Purchase Agreement") for and on behalf of the Agency, in substantially the form presented at the meeting at which this Resolution was considered, subject to such changes, modifIcations, insertions and omissions and such fIlling-in of blanks therein as may be determined and approved by the Chairman, after consultation with the Executive Director and General Counsel of the Agency. The execution of the Series 1998 Bond Purchase Agreement for and on behalf of the Agency by the Chairman shall be conclusive evidence of the Agency's approval of the Bond Purchase Agreement. The Registrar is hereby authorized and directed to authenticate the Series 1998 Bonds and the Executive Director is hereby authorized to cause the Series 1998 Bonds to be delivered to or upon the order of the Underwriters upon payment of the purchase price, as shall be set forth in the Series 1998 Bond Purchase Agreement, and satisfaction of the conditions contained in Section 304(H) of the Bond Resolution. Section 7. The proposed Preliminary OffIcial Statement (the "Series 1998 Preliminary OffIcial Statement") and Official Statement (the "Series 1998 Official Statement") in connection with the issuance of the Series 1998 Bonds are hereby approved in substantially the form of the Series 1998 Preliminary Official Statement presented at the meeting at which this Resolution was considered, subject to such changes, modifIcations, insertions and omissions and such fIlling-in of blanks therein as may be determined and approved by the Chairman, after consultation with the Executive Director and General Counsel of the Agency. The execution of the OffIcial Statement, for and on behalf of the Agency by the Chairman shall be conclusive evidence of the 8 DOA:[04S48.DOCS.MIA 180298]AUTH-RESO-3 Agency's approval of the Series 1998 Preliminary OffIcial Statement and the Series 1998 OffIcial Statement. The distribution of said Series 1998 Preliminary OffIcial Statement and Series 1998 OffIcial Statement in connection with the marketing of the Series 1998 Bonds and the execution and delivery of the Series 1998 OffIcial Statement by the Chairman are hereby authorized. The Chairman or his designee after consultation with the Executive Director and General Counsel of the Agency, is hereby authorized to make any necessary certifIcations to the Underwriters regarding a near fInal or deemed rmal Series 1998 Official Statement, if and to the extent required by Rule 15c2-12 of the United States Securities and Exchange Commission (the "Rule"). Section 8. The proceeds of each Series of the Series 1998 Bonds (including accrued interest, if any) shall be applied as provided in Section 303(b) of the Bond Resolution and a certificate of the Executive Director delivered concurrently with the issuance of the Series 1998 Bonds. With respect to each Series of the Series 1998 Bonds, there are hereby created accounts within each of the Acquisition and Construction Fund and the Cost of Issuance Fund established under the Bond Resolution designated as the "Series 1998A Account" and the "Series 1998B Account". Proceeds of each Series of the Series 1998 Bonds for deposit to the credit of the Acquisition and Construction Fund and the Cost of Issuance Fund shall be deposited in the applicable accounts hereinabove created in accordance with clauses (2) and (4) of Section 303(b) of the Bond Resolution and disbursed pursuant to Section 303 of the Bond Resolution. Section 9. Upon issuance of the Series 1998 Bonds and solely for accounting purposes, the Trustee is hereby authorized to establish separate subaccounts with respect to each Series of Bonds Outstanding under the Bond Resolution within each account of the Sinking Fund in order 9 DOA: (04S48. DOCS .MIA180298]AUTH-RESO-3 to permit compliance with the arbitrage rebate requirements under the Code relating to each Series of tax-exempt Bonds issued under the Bond Resolution. Section 10. The Series 1998 Bonds shall be executed in the form and manner provided in the Bond Resolution. The Series 1998 Bonds are hereby authorized to be issued initially in book-entry form and registered in the name of The Depository Trust Company, New York, New York ("DTC"), or its nominee which will act as securities depository for the Series 1998 Bonds. The Executive Director is hereby authorized and directed to execute any necessary letters of representations with DTC and, notwithstanding the provisions of the Bond Resolution, to do all other things, comply with all requirements and execute all other such documents as are incidental to such book-entry system. In the event a book-entry system for the Series 1998 Bonds ceases to be in effect, the Series 1998 Bonds shall be issued in fully registered form without coupons. Section 11. For the benefit of the holders and beneficial owners from time to time of the Series 1998 Bonds, the Agency agrees, in accordance with the Rule, to provide or cause to be provided such annual rmancial information and operating data, rmancial statements and notices, in such manner, as may be required for purposes of paragraph (b)(S) of the Rule. In order to describe and specify certain terms of the Agency's continuing disclosure agreement, including provisions for enforcement, amendment and termination, the Executive Director is hereby authorized and directed to enter into, execute and deliver, in the name and on behalf of the Agency, a Continuing Disclosure Agreement (the "Series 1998 Continuing Disclosure Agreement") with the City and the Trustee, in substantially the form presented at the meeting at which this Resolution was considered, subject to such changes, modifications, insertions and omissions and such fIlling-in of blanks therein as may be determined and approved by the Executive Director, after consultation with General Counsel of the Agency. The execution of 10 DOA:[04S48.DOCS.MIAI80298]AUTH-RESO-3 the Series 1998 Continuing Disclosure Agreement, for and on behalf of the Agency by the Executive Director, shall be deemed conclusive evidence of the Agency's approval of the Series 1998 Continuing Disclosure Agreement. Notwithstanding any other provisions of the Bond Resolution or this Resolution, any failure by the Agency or the City to comply with any provisions of the Series 1998 Continuing Disclosure Agreement shall not constitute a default under the Bond Resolution and the remedies therefor shall be solely as provided in the Series 1998 Continuing Disclosure Agreement. The Executive Director is further authorized and directed to establish, or cause to be established, procedures in order to ensure compliance by the Agency with the Series 1998 Continuing Disclosure Agreement, including the timely provision of information and notices. Prior to making any fIling in accordance with such agreement, the Executive Director shall consult with, as appropriate, General Counsel of the Agency or the Agency's bond counsel. The Executive Director, acting in the name and on behalf of the Agency, shall be entitled to rely upon any legal advice provided by General Counsel of the Agency or the Agency's bond counsel in determining whether a fIling should be made. Section 12. The Agency is hereby authorized to secure the Series 1998 Bond Insurance Policy guaranteeing the scheduled payment of principal of and interest on the Series 1998 Bonds and to pay the premiums with respect thereto. Each Series 1998 Bond Insurance Policy shall constitute a Credit Facility under the Bond Resolution. For so long as the Series 1998 Bond Insurance Policy is in effect and MBIA has not defaulted in its obligations thereunder, and notwithstanding any provisions to the contrary contained in the Bond Resolution, the Agency, the Trustee, the Paying Agent, the Registrar and 11 DOA:[04S48.DOCS.MIA180298]AUTH-RESO-3 the Holders of the Series 1998 Bonds, as applicable, covenant and agree, but solely for the benefit of MBIA, as follows: (a) In connection with the issuance of additional parity Bonds under the Bond Resolution, the Agency shall deliver to MBIA a copy of the disclosure document, if any, circulated with respect to such additional parity Bonds. (b) MBIA will be deemed the Bondholder of all Series 1998 Bonds under the Bond Resolution, in lieu of the registered owners thereof, for purposes of (i) consenting to the adoption of any supplemental resolution which requires the consent of Bondholders pursuant to the Bond Resolution and (ii) exercising any rights and remedies granted to the Bondholders of the Series 1998 Bonds under the Bond Resolution upon the occurrence of a default thereunder; provided, however, that MBIA shall not have the right to decrease the amount of principal or interest due and owing on the Series 1998 Bonds or extend the dates of payment of installments of principal of and interest on the Series 1998 Bonds. (c) The Agency shall provide MBIA and Standard & Poor's Ratings Services ("S&P") with a copy of all supplemental resolutions adopted pursuant to the Bond Resolution. (d) Defeasance Obligations in connection with any defeasance of the Series 1998 Bonds shall be limited to: 1. U.S. Treasury Certificates, Notes and Bonds (including State and Local Government Series--" SLGS "). 2. Direct obligations of the Treasury which have been stripped by the Treasury itself, CATS, TIGRS and similar securities. 3. The interest component of Resolution Funding Corp. securities ("REFCORP") which have been stripped by request to the Federal Reserve Bank of New York in book entry form. 4. Pre-refunded municipal bonds rated "Aaa" by Moody's Investors Service, Inc. ("Moody's") and "AAA" by S&P. If however, the issue is only rated by S&P (Le., there is no Moody's rating), then the pre-refunded bonds must have been pre-refunded with cash, direct U.S. or U.S. guaranteed obligations, or AAA rated pre-refunded municipals. 5. Obligations issued by the following agencies which are backed by the full faith and credit of the U. S. : 12 DOA:[04S48.DOCS.MIA18(298)A UTH-RESO-3 a. U.S. Export-Imoort Bank (Eximbank) Direct obligations or fully guaranteed certificates of beneficial ownership b. Farmers Home Administration (FmHA) Certificates of beneficial ownership c. Federal Financing Bank d. General Services Administration Participation certificates e. U.S. Maritime Administration Guaranteed Title XI financing f. U.S. De\>artment of Housimz and Urban Development (HUD) Project Notes Local Authority Bonds New Communities Debentures - U.S. government guaranteed debentures U.S. Public Housing Notes and Bonds - U.S. government guaranteed public housing notes and bonds. (e) Permitted Investments under the Bond Resolution shall be limited to: 1. Direct obligations of the United States of America (including obligations issued or held in book-entry form on the books of the Department of the Treasury, and CATS and TGRS) or obligations the principal of and interest on which are unconditionally guaranteed by the United States of America. 2. Bonds, debentures, notes or other evidence of indebtedness issued or guaranteed by any of the following federal agencies and provided such obligations are backed by the full faith and credit of the United States of America (stripped securities only if they have been stripped by the agency itself) : a. U.S. Export-Iml'ort Bank (Eximbank) Direct obligations or fully guaranteed certificates of beneficial ownership b. Farmers Home Administration (FmHA) Certificates of beneficial ownership c. Federal Financine Bank 13 DOA: [04S48.DOCS .MIAl8(298)A UTH-RESO-3 d. Federal Housine Administration Debentures (FHA) e. General Services Administration Participation certificates f. Government National Mortgaee Association (GNMA or Ginnie Mae) GNMA - guaranteed mortgage-backed bonds GNMA - guaranteed pass-through obligations g. U. S. Maritime Administration Guaranteed Title XI rmancing h. U.S. Department of Housing and Urban Development (HUD) Project Notes Local Authority Bonds New Communities Debentures - U.S. government guaranteed debentures U.S. Public Housing Notes and Bonds - U.S. government guaranteed public housing notes and bonds. 3. Bonds, debentures, notes or other evidence of indebtedness issued or guaranteed by any of the following non-full faith and credit U.S. government agencies (stripped securities only if they have been stripped by the agency itselt): a. Federal Home Loan Bank System Senior debt obligations b. Federal Home Loan Mortgage Comoration (FHLMC or Freddie Mac) Participation Certificates Senior debt obligations c. Federal National Mortgage Association (FNMA or Fannie Mae) Mortgage-backed securities and senior debt obligations d. Student Loan Marketine Association (SLMA or Sallie Mae) Senior debt obligations e. Resolution Funding COIl>. (REFCORP) Obligations f. Farm Credit System Consolidated systemwide bonds and notes 14 DOA:[04S48.DOCS . MIA 180298]A UTH-RESO-3 4. Money market funds registered under the Federal Investment Company Act of 1940, whose shares are registered under the Federal Securities Act of 1933, and having a rating by S&P of AAAm-G, AAAm, or Aam and if rated by Moody's, having a rating by Moody's of Aaa, Aal or Aa2. 5. Certificates of deposit secured at all times by collateral described in (1) and/or (2) above. Such certificates must be issued by commercial banks, savings and loan associations or mutual savings banks. The collateral must be held by a third party and the Bondholders must have a perfected fIrst security interest in the collateral. 6. Certificates of deposit, savings accounts, deposit accounts or money market deposits which are fully insured by the Federal Deposit Insurance Corporation. 7. Investment agreements acceptable to MBIA. 8. Commercial paper rated, at the time of purchase, "Prime-I" by Moody's and "A-I" or better by S&P. 9. Bonds or notes issued by any state or municipality which are rated by Moody's and S&P in one of the two highest rating categories assigned by such agencies. 10. Federal funds or bankers acceptances with a maximum term of one year of any bank which has an unsecured, uninsured and unguaranteed obligation rating of "Prime-I" or "A3" or better by Moody's and "A-I" or "A" or better by S&P. 11. Repurchase agreements for 30 days or less which satisfy the following criteria or which exceed 30 days as are otherwise approved by MBIA: 1. Entered into by the Agency or the Trustee, as applicable, with: a. Primary dealers on the Federal Reserve reporting dealer list which are rated A or better by S&P and Moody's. b. Banks rated "A" or above by S&P and Moody's. 2. The repurchase agreement includes the following: a. Securities which are acceptable for transfer are: (1) Direct U.S. government obligations, or 15 DOA:[04S48.DOCS.MIA180298]AUTH-RESO-3 (2) Federal agencies backed by the full faith and credit of the U.S. government (and FNMA & FHLMC). b. The term of the repurchase may be up to 30 days. c. The collateral must be delivered to the Agency, the Trustee or a third party acting as agent simultaneous with payment (perfection by possession of certificated securities). d. Valuation of collateral: (1) The securities must be valued weekly marked-to- market at current market price plus accrued interest; and (2) The value of collateral must be equal to 104% of the amount of cash transferred by the Agency or the Trustee, as applicable, to the dealer bank or security fIrm plus accrued interest. If the value of securities held as collateral falls below 104% of the value of the cash transferred by the Agency or the Trustee, as applicable, then additional cash or acceptable securities must be transferred by the dealer bank or security fIrm. If, however, the securities used as collateral are FNMA or FHLMC, then the value of collateral must equal 10S % . 3. A legal opinion must be delivered to the Agency to the effect that the repurchase agreement meets guidelines under State of Florida law for legal investment of public funds. 12. Any State of Florida administered pool investment fund in which the City is statutorily permitted or required to invest. (t) Investments of moneys held under the Debt Service Reserve Account shall be valued at fair market value, marked to market at least once per year and have maturities not exceeding five (S) years except for investment agreements approved by MBIA. (g) The Trustee, the Paying Agent and the Registrar must each be a commercial bank with trust powers. (h) The Agency shall provide MBIA notice of the resignation or removal of the Trustee, the Paying Agent or the Registrar and the appointment of a successor thereto. 16 DOA:(04S48.DOCS.MIA 18(298)A UTH-RESO-3 (i) MBIA shall receive copies of all notices required to be delivered to Bondholders of the Series 1998 Bonds under the Bond Resolution and, on an annual basis, copies of the Agency's audited fmancial statements and annual budget. (j) All notices required to be given to MBIA shall be in writing and shall be sent by registered or certified mail addressed as follows: MBIA Insurance Corporation 113 King Street Armonk, New York 10504 Attention: Insured Portfolio Management (k) The Trustee shall, not later than the third business day preceding each payment date on the Series 1998 Bonds, transfer from moneys on deposit in the applicable Accounts to the Paying Agent the amounts necessary to pay the principal of and interest on the Series 1998 Bonds. In the event that, on the second business day, and again on the business day, prior to the payment date on the Series 1998 Bonds, the Paying Agent has not received sufficient moneys to pay all principal of and interest on the Series 1998 Bonds due on the second following or following, as the case may be, business day, the Paying Agent shall immediately notify MBIA or its designee on the same business day by telephone or telecopy, confIrmed in writing by registered or certified mail, of the amount of the deficiency. If the deficiency is made up in whole or in part prior to or on the payment date, the Paying Agent shall so notify MBIA or its designee. In addition, if the Paying Agent has notice that any Bondholder has been required to disgorge payments of principal or interest on the Series 1998 Bonds to a trustee in bankruptcy or creditors or other pursuant to a rmal judgment by a court of competent jurisdiction that such payment constitutes a voidable preference to such Bondholder within the meaning of any applicable bankruptcy laws, then the Paying Agent shall notify MBIA or its designee of such fact by telephone or telegraphic notice, confIrmed in writing by registered or certified mail. (1) The Paying Agent is hereby irrevocably designated, appointed, directed and authorized to act as attorney-in-fact for Bondholders of the Series 1998 Bonds as follows: 1. If and to the extent there is a deficiency in amounts required to pay interest on the Series 1998 Bonds, the Paying Agent shall (a) execute and deliver to State Street Bank and Trust Company, N .A., or its successors under the Bond Insurance Policy (the "Insurance Paying Agent"), in form satisfactory to the Insurance Paying Agent, an instrument appointing MBIA as agent for such Bondholders in any legal proceeding related to the payment of such interest and an assignment to MBIA of the claims for interest to which such deficiency relates and which are paid by MBIA, (b) receive as designee of the respective Bondholders (and not as Paying 17 DOA: (04S48. DOCS .MIA18(298)AUTH-RESO-3 Agent) in accordance with the tenor of the Series 1998 Bond Insurance Policy payment from the Insurance Paying Agent with respect to the claims for interest so assigned and (c) disburse the same to such respective bondholders; and 2. If and to the extent of a deficiency in amounts required to pay principal of the Series 1998 Bonds, the Paying Agent shall (a) execute and deliver to the Insurance Paying Agent in form satisfactory to the Insurance Paying Agent an instrument appointing MBIA as agent for such Bondholder in any legal proceeding relating to the payment of such principal and assignment to MBIA of any of the Series 1998 Bonds surrendered to the Insurance Paying Agent of so much of the principal amount thereof as has not previously been paid or for which moneys are not held by the Paying Agent and available for such payment (but such assignment shall be delivered only if payment from the Insurance Paying Agent is received), (b) receive as designee of the respective Bondholders (and not as Paying Agent) in accordance with the tenor of the Series 1998 Bond Insurance Policy payment therefor from the Insurance Paying Agent, and (c) disburse the same to such Bondholders. (m) Payments with respect to claims for interest on and principal of Series 1998 Bonds disbursed by the Paying Agent from proceeds of the Series 1998 Bond Insurance Policy shall not be considered to discharge the obligation of the Agency with respect to such Series 1998 Bonds, and MBIA shall become the owner of such unpaid Series 1998 Bonds and claims for the interest in accordance with the tensor of the assignment made to it under the provisions of this section or otherwise. (n) Irrespective of whether any such assignment is executed and delivered, the Agency, the Trustee, the Paying Agent and the Registrar hereby agree for the benefit of MBIA that: 1. They recognize that to the extent MBIA makes payments, directly or indirectly (as by paying through the Paying Agent), on account of principal of or interest on the Series 1998 Bonds, MBIA will be subrogated to the rights of such Bondholders to receive the amount of such principal and interest from the Agency, with interest thereon as provided and solely from the sources stated in the Bond Resolution and the Series 1998 Bonds; and 2. They will accordingly pay to MBIA the amount of such principal and interest (including principal and interest recovered under subparagraph (ii) of the fIrst paragraph of the Series 1998 Bond Insurance Policy, which principal and interest shall be deemed past due and not to have been paid), with interest thereon as provided in the Bond Resolution and the Series 1998 Bonds, but only from the sources and in the manner provided in the 18 DOA:[04S48.DOCS.MIA18(298)AUTH-RESO-3 Bond Resolution for the payment of principal of and interest on the Series 1998 Bonds to Bondholders, and will otherwise treat MBIA as the owner of such rights to the amount of such principal and interest. Section 13. The Chairman, based upon the recommendations of the Financial Advisor, is hereby authorized to determine to satisfy all or a portion of the Reserve Account Requirement with the deposit of the Series 1998 Reserve Policy to the credit of the Debt Service Reserve Account, to provide for the payment of the premium with respect thereto and, subject to the provisions of the Bond Resolution, to apply any moneys released from the Debt Service Reserve Account as a result of the deposit of the Series 1998 Reserve Policy therein, all as shall be provided in the Series 1998 Chairman's CertifIcate. The Commission hereby approves the form of a Financial Guaranty Agreement to be entered into between the Agency and MBIA to the extent the Series 1998 Reserve Policy is deposited to the credit of the Debt Service Reserve Account (the "Series 1998 Insurance Agreement"), a copy of which draft form of Series 1998 Insurance Agreement has been presented at the meeting at which this Series Resolution was considered. To the extent applicable, the Chairman is hereby authorized to execute the Series 1998 Insurance Agreement in substantially the form presented at the meeting at which this Series Resolution was considered, subject to such changes, modifications, insertions and omissions and such filling-in of blanks therein as may be necessary to secure delivery of the Series 1998 Reserve Policy. The execution and delivery by the Chairman of the Series 1998 Insurance Agreement for and on behalf of the Agency shall be conclusive evidence of the Agency's approval of the Series 1998 Insurance Agreement. For so long as the Series 1998 Reserve Policy is in effect and MBIA has not defaulted in its obligations thereunder, and notwithstanding any provisions to the contrary contained in the Bond Resolution, the Agency, the Trustee, the Paying Agent, the Registrar and the Holders of 19 DOA:[04S48.DOCS.MIA 18(298)AUTH-RESO-3 the Series 1998 Bonds, as applicable, covenant and agree, but solely for the benefit of MBIA, as follows: (a) A Reserve Account Insurance Policy or Reserve Account Letter of Credit shall be limited to (i) those facilities issued by an insurance company rated in the highest rating category by Moody's and S&P and, if rated by A.M. Best & Company, rated in the highest rating category by A.M. Best & Company or (ii) such other facilities authorized under the Bond Resolution and approved by MBIA. (b) Net Trust Fund Revenues shall be applied under the provisions of Section 304(D)(3) of the Bond Resolution and Supplemental Revenues shall be applied under the provisions of the Supplemental Revenues Resolution fIrst, to reimburse MBIA for any payments made under the Series 1998 Reserve Policy, thereby reinstating the Series 1998 Reserve Policy, and second, for deposit with the Trustee of any cash required to be deposited in the Debt Service Reserve Account after taking into account the amounts available under all Reserve Account Insurance Policies and/or Reserve Account Letters of Credit, including the Series 1998 Reserve Policy; provided, however, that if reimbursements are also due to issuers of other Reserve Account Insurance Policies or Reserve Account Letters of Credit, the reimbursements to MBIA and such other providers shall be paid on a pro-rata basis. (c) The Paying Agent shall deliver a "Demand for Payment II in the form attached to the Series 1998 Reserve Policy at least three days prior to the date on which funds are required. (d) The Paying Agent shall maintain adequate records, verified with MBIA, as to the amount available to be drawn at any given time under the Series 1998 Reserve Policy. In addition, so long as amounts are due and owing to MBIA under the Series 1998 Insurance Agreement, the Agency, the Trustee, the Paying Agent, the Registrar and the Holders of the Series 1998 Bonds, as applicable, covenant and agree, but solely for the benefit of MBIA, as follows: (a) The Agency hereby pledges and grants a lien upon the Pledged Funds, subordinate to the lien thereon granted for the benefit of Bondholders, Credit Providers and Liquidity Providers under the provisions of the Bond Resolution, in order to secure the Agency's payment obligations under the Series 1998 Insurance Agreement. Such payment obligations under the Series 1998 Insurance Agreement are junior, inferior and subordinate in all respects to the Bonds as to 20 DOA:(04S48.DOCS.MIA180298]AUTH-RESO-3 lien on and source and security for payment from the Pledged Funds and in all other respects. (b) The Bond Resolution shall not be discharged until all amounts due and payable to MBIA have been paid in full or provision for their payment in full has been made. (c) The Agency shall maintain adequate records, verified by MBIA, as to the amounts paid and owing to MBIA under the terms of the Series 1998 Insurance Agreement. (d) The Agency shall not optionally redeem any Bonds or apply Net Trust Fund Revenues pursuant to Section 304(0)(5) of the Bond Resolution, other than for the payments required in clauses (1) through (4) of said Section 304(D), unless the Agency is current in all of its payment obligations under the Series 1998 Insurance Agreement. Section 14. The offIcers, agents and employees of the Agency, Trustee, Registrar and Paying Agent are hereby authorized and directed to do all acts and things required of them by the provisions of the Series 1998 Bonds, the Bond Resolution, the Series 1998 Bond Purchase Agreement, the Series 1998 Continuing Disclosure Agreement, the Series 1998 Bond Insurance Policy, the Series 1998 Reserve Policy, the Series 1998 Insurance Agreement and this Resolution, for the full, punctual and complete performance of all the terms, covenants, provisions and agreements of the Series 1998 Bonds, the Bond Resolution, the Series 1998 Bond Purchase Agreement, the Series 1998 Continuing Disclosure Agreement, the Series 1998 Bond Insurance Policy, the Series 1998 Reserve Policy, the Series 1998 Insurance Agreement and this Resolution. 21 DOA:[04S48.DOCS.MIA180298]AUTH-RESO-3 (Seal) Attest: Section 15. This Resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED this _ day of ,1998. Secretary DOA:(04S48.DOCS.MIA180298]AUTH-RESO-3 Chairman 22 EXHIBIT A PART I SERIES 1998A REDEVELOPMENT PROJECT 1. Completion of development and construction of certain public areas of the Loews Miami Beach Hotel located in the Redevelopment Area at 1601 Collins Avenue. 2. Completion of development and construction of a public parking garage located in the Redevelopment Area between Washington Avenue and Collins Avenue proximate to 16th Street. 3. Acquisition of property for the development and construction of the Royal Palm Crowne Plaza Resort Hotel to be located in the Redevelopment Area at 15th Street and Collins Avenue. 4. Acquisition of property for and development and construction of a portion of the cultural center facilities to be located in the Redevelopment Area between 20th Street and 23rd Street, proximate to Collins Avenue, consisting of Collins Park, a regional library facility, the Miami City Ballet building and a public parking garage. PART II SERIES 1998B REDEVELOPMENT PROJECT 1. Acquisition of property for and development and construction of a portion of the cultural center facilities to be located in the Redevelopment Area between 20th Street and 23rd Street, proximate to Collins A venue, consisting of Collins Park, a regional library facility, the Miami City Ballet building and a public parking garage. 2. Additional public improvements which the Agency by resolution determines to undertake within the Redevelopment Area in accordance with the Redevelopment Plan and which may be funded from proceeds of bonds the interest on which is excludable from gross income for federal income tax purposes. DOA: (04S48. DOCS. MIA 18(298)AUTH-RESO-3 EXHIBIT B SS&D DRAFT #2 6/24/98 CONTINUING DISCLOSURE AGREEMENT THIS CONTINillNG DISCLOSURE AGREEMENT (the II Agreement") dated as of , 1998, is made by and among the MIAMI BEACH REDEVELOPMENT AGENCY, a public body corporate and politic duly created and existing under the Constitution and laws of the State of Florida (the "Agency"), the CITY OF MIAMI BEACH, FLORIDA, a political subdivision duly organized and existing under the Constitution and laws of the State of Florida (the "City"), and FIRST UNION NATIONAL BANK, a national banking association duly organized and existing under the laws of the United States of America, with its principal place of business located in Miami, Florida, as trustee (the "Trustee"), under the circumstances summarized in the following recitals (each capitalized term used but not otherwise dermed herein has the meaning assigned to it in Section 1 below or in the Resolution hereinafter defmed): A. The Agency has determined to issue and sell the Bonds, and the Bonds will be issued pursuant to and secured by the Resolution. B. The Original Purchaser is required under the Rule to not purchase or sell the Bonds in a primary offering unless the Original Purchaser has reasonably determined that the Agency and the City have made an agreement in accordance with the provisions of the Rule. NOW, THEREFORE, in consideration of the recitals and the mutual representations and agreements hereinafter contained, the Agency, the City and the Trustee agree, in accordance with the provisions of the Rule, for the benefit of the holders and beneficial owners from time to time of the Bonds, as follows: Section 1. Deftnitions and Inte1l'retation. In addition to the words and terms defmed elsewhere in this Agreement or by reference to the Resolution, unless the context or use clearly indicates another or different meaning or intent: II Accounting Principles" means the accounting principles applied from time to time in the preparation of each of the Obligated Person's annual rmancial statements, initially generally accepted accounting principles as recommended from time to time by the Governmental Accounting Standards Board of the American Institute of Certified Public Accountants. "Agency Annual Information II means rmancial information and operating data to be provided by the Agency for each Fiscal Year as follows: information appearing in the Official Statement in the table under the caption "ESTIMATED DEBT SERVICE COVERAGE II and in the table entitled "Miami Beach Redevelopment Agency Historical Taxable Real Property and Tax Increment Revenues City Center Historic Convention Village, II the release of the pledge of Supplemental Revenues and issuance of additional debt payable from the Pledged Funds. II Annual Information" means (i) with respect to the Agency, the Agency Annual Information and (ii) with respect to the City, the City Annual Information. DOA:[04S48.DOCS . MIA 180298]CONT _DISC _ AGR-2. II Authorized Disclosure Representative II means (i) with respect to the Agency, the Executive Director of the Agency and (ii) with respect to the City, the Finance Director, or, in either case, any other person or persons at the time designated to act on behalf of such Obligated Person by written certificate furnished to the Trustee, containing the specimen signature of such person or persons and signed on behalf of the Agency by the Executive Director or on behalf of the City by the Finance Director. That certificate may designate an alternate or alternates, each of whom shall have the same authority, duties and powers as such Authorized Disclosure Representative. II Bonds II means collectively, the $ Miami Beach Redevelopment Agency Tax Increment Revenue Bonds, Taxable Series 1998A (City Center/Historic Convention Village), and $ Miami Beach Redevelopment Agency Tax Increment Revenue Bonds, Series 1998B (City Center/Historic Convention Village), each dated as of , 1998. "Business Day II means any day other than a Saturday, Sunday or a day on which the Trustee is required, or authorized or not prohibited by law (including executive orders), to close and is closed. "City Annual Information" means rmancial information to be provided by the City for each Fiscal Year as follows: Resort Tax Revenues and Supplemental Revenues, issuance of additional debt payable form the Resort Tax Revenues or Supplemental Revenues and changes in the Resort Tax with respect to the percentage rate imposed or the exemptions therefrom. "Filing Date" means, with respect to each Obligated Person, the 240th day following the end of each Fiscal Year of such Obligated Person (or the next preceding Business Day if that day is not a Business Day). "Fiscal Year" means the fiscal year of each Obligated Person ending on or after September 30, 1998. "Holder II has the meaning assigned to it in the Resolution. "MSRB" means the Municipal Securities Rulemaking Board. "NRMSIR" means each nationally recognized municipal securities information repository designated from time to time by the SEC in accordance with the Rule. "Notice Addresses": As to the Trustee: First Union National Bank First Union Financial Center 200 South Biscayne Boulevard Miami, Florida 33131 Attention: Corporate Trust Department Telephone No.: (305) 789-4682 Facsimile No.: (305) 789-4678 2 DOA: [04S48. DOCS. MIA 18(298)CONT _DISC _AGR-2. As to the Agency: Miami Beach Redevelopment Agency 1700 Convention Center Drive Miami Beach, Florida 33139 Attention: Executive Director Telephone No.: (305) 673-7010 Facsimile No.: (305) 673-7782 As to the City: City of Miami Beach, Florida 1700 Convention Center Drive Miami Beach, Florida 33139 Attention: Finance Director Telephone No.: (305) 673-7466 Facsimile No.: (305) 673-7795 "0bligated Person" means the Agency or the City, as applicable. "0bligated Persons" means collectively, the Agency and the City. "Official Statement II means the Official Statement dated August 2, 1996 relating to the Bonds. "Original Purchaser" means collectively, PaineWebber Incorporated, Prudential Securities Incorporated and William R. Hough & Co. "Resolution" means collectively, Resolution No. 150-94, adopted by the Agency on January 5, 1994, as supplemented by Resolution No. _-98, adopted by the Agency on July 1, 1998, and as further supplemented and amended from time to time, and Resolution No. 94- 21008, adopted by the City on January 5, 1994, as supplemented by Resolution No. 98-_, adopted by the City on July 1, 1998, and as further supplemented and amended from time to time. "Rule" means Rule 15c2-12 promulgated by the SEe pursuant to the Securities Exchange Act of 1934. II SEC" means the Securities and Exchange Commission. "Specified Events" means the occurrence of any of the following events, within the meaning of the Rule, with respect to the Bonds: principal and interest payment delinquencies; non-payment related defaults; unscheduled draws on the Debt Service Reserve Account reflecting rmancial difficulties; unscheduled draws on credit enhancements reflecting fmancial diffIculties; substitution of credit or liquidity providers, or their failure to perform; adverse tax opinions or events affecting the tax-exempt status of the Bonds; modifications to rights of Holders or 3 DOA:(04S48.DOCS.MIAI80298]CONT _DISC _ AGR-2. beneficial owners; bond calls; defeasances; release, substitution, or sale of property securing repayment of the Bonds; and rating changes. II SID II means the state information depository, if any, designated by the State of Florida and with which filings are required to be made by the Obligated Person in accordance with the Rule. The captions and headings in this Agreement are solely for convenience of reference and in no way derme, limit or describe the scope or intent of any Sections, subsections, paragraphs, subparagraphs or clauses hereof. Reference to a Section means a section of this Agreement and to an Exhibit means an exhibit to this Agreement, unless otherwise indicated. Section 2. Provision of Annual Information: Audited Financial Statements. (a) Each Obligated Person hereby agrees to provide or cause to be provided to each NRMSIR, to any SID and to the Trustee, (i) its Annual Information for the preceding Fiscal Year not later than the Filing Date for that Fiscal Year; and (ii) when and if available, audited rmancial statements of such Obligated Person for each Fiscal Year prepared in accordance with the Accounting Principles. Each Obligated Person expects that audited annual rmancial statements of such Obligated Person will be prepared and will be available together with its Annual Information. (b) Each Obligated Person expects that its Annual Information will be provided directly by such Obligated Person or through the other Obligated Person as its designated agent. (c) If the Trustee has not received the Annual Information for a Fiscal Year by its close of business on the fifteenth Business Day preceding the Filing Date for that Fiscal Year, the Trustee shall provide a notice to the applicable Authorized Disclosure Representative, not later than its close of business on the next Business Day, substantially in the form of Exhibit A, by facsimile transmission (or other means similarly prompt) and by certified or registered mail, postage prepaid, return receipt requested. If the Trustee has not received that Annual Information by its close of business on the Filing Date, the Trustee shall provide a notice to the applicable Authorized Disclosure Representative, not later than its close of business on the next Business Day, substantially in the form of Exhibit B, by facsimile transmission (or other means similarly prompt). The applicable Obligated Person shall be entitled to provide written evidence of the submission of the Annual Information in accordance with subsection 2(a)(i), including a certificate of the Authorized Disclosure Representative as to the relevant facts, and, if applicable, a written statement regarding any failure to comply with subsection 2(a)(i). The Trustee shall be entitled to rely conclusively upon any written evidence provided by the Obligated Person regarding the provision of that information to any NRMSIR or SID. If, in any instance, the required information was not timely filed or the Obligated Person fails to provide evidence, by 3:00 p.m., eastern time, on the second Business Day following the Filing Date, of its timely 4 DOA: [04S48. DOCS.MIA 180298]CONT _DISC _AGR-2. fIling with each NRMSIR and any SID, the Trustee shall send or cause to be sent promptly after receipt of any such evidence or statement from the Obligated Person, but in any event not later than its close of business on the second Business Day following the Filing Date, a notice substantially in the form of Exhibit C, modified to reflect the pertinent facts, to each NRMSIR or to the MSRB, and to any SID by facsimile transmission (or other means similarly prompt). Section 3. Notice of Specified Events: Changes in Accountinll Principles or Fiscal Year. (a) The Agency, with respect to (i) below, and each Obligated Person, as applicable, with respect to (ii) and (Hi) below, agrees to provide or cause to be provided to each NRMSIR or to the MSRB, and to the Trustee and to any SID, in a timely manner, (i) notice of any Specified Event, if that Event is material, (ii) in the manner described in subsection 2(c), notice of its failure to provide or cause to be provided the Annual Information on or prior to the Filing Date, and (Hi) notice of any change in the Accounting Principles applied in the preparation of the annual fInancial statements of such Obligated Person or any change in the dates on which the Fiscal Year of such Obligated Person begins and ends. (b) The Trustee shall promptly notify each Authorized Disclosure Representative upon becoming aware of the occurrence of any Specified Event (other than the giving of a notice of optional redemption of any Bonds or defeasance of the Bonds). (c) If the Agency becomes aware of a Specified Event that is material, the Agency shall provide or cause to be provided notice of that Event in accordance with subsection 3(a). (d) The Trustee shall mail to each Holder, by fIrst class mail, postage prepaid, a copy of any notice that is filed with it by an Obligated Person in accordance with subsection 3(a). Section 4. Obligated Persons: Dissemination Allent. The Obligated Persons represent that they will be the only obligated persons with respect to the Bonds at the time the Bonds are delivered by the Agency to the Original Purchaser and that no other person is expected to become so committed at any time after issuance of the Bonds. Either Obligated Person or the Trustee may, from time to time, appoint or engage an agent to act on its behalf in performing its obligations under this Agreement and may discharge any such agent, with or without appointing a successor; provided, that neither the Obligated Persons nor the Trustee shall be relieved in any respect by appointment of an agent from primary liability for the performance of their obligations under this Agreement. Section 5. Remedy for Breach. This Agreement shall be solely for the benefit of the holders and beneficial owners from time to time of the Bonds. The exclusive remedy for any breach of this Agreement by an Obligated Person shall be limited, to the extent permitted by law, to a right of holders and beneficial owners, or the Trustee, to institute and maintain, or to cause to be instituted and maintained, such proceedings in Miami-Dade County, Florida as may be authorized at law or in equity to obtain the specific performance by such Obligated Person of its obligations under this Agreement. The Trustee may exercise any such right and, if requested to do so by the Holders of at least 25 % in aggregate principal amount of the Bonds then outstanding, subject to the same conditions, limitations and procedures that would apply 5 DOA:[04S48.DOCS.MIA180298]CONT _DISC _ AGR-2. under the Resolution, the Trustee shall exercise any such right. Any holder or beneficial owner may exercise any such right; provided that, except in the instance of an alleged failure of an Obligated Person to provide or cause to be provided a pertinent filing if such a filing is due and has not been made, any such right shall be exercised in the same manner and subject to the same conditions and limitations that would apply under the Resolution. Holders and beneficial owners shall not be entitled to institute or maintain any such proceedings individually that assert a breach of this Agreement that is based on the alleged inadequacy of any pertinent filing that has been made. Section 6. Performance by the Trustee: Compensation. (a) Solely for the purpose of (i) defIning the standards of care and performance applicable to the Trustee in the performance of its obligations under this Agreement, (ii) the manner of execution by the Trustee of those obligations, (iii) derIDing the manner in which, and the conditions under which, the Trustee may be required to take any action at the direction of Holders, including the condition that indemnification be provided, and (iv) matters of removal, resignation and succession of the Trustee under this Agreement, the Resolution is hereby made applicable to this Agreement as if this Agreement were contained in the Resolution; provided that the Trustee shall have only such duties under this Agreement as are specifically set forth in this Agreement. (b) Subject to Section 9, the Obligated Persons agree to pay to the Trustee from time to time reasonable compensation for services provided by the Trustee under this Agreement and to payor reimburse the Trustee upon request for all reasonable expenses, disbursements and advances incurred or made in accordance with this Agreement (including the reasonable compensation and the expenses and disbursements of its counsel and of all agents and other persons regularly in its employ), except to the extent that any such expense, disbursement or advance is due to the negligence or bad faith of the Trustee. (c) The obligations of the Obligated Persons under this Section shall survive resignation or removal of the Trustee and termination of other provisions of this Agreement pursuant to Section 8. (d) The Trustee is a party to this Agreement for and on behalf of the holders and beneficial owners of the Bonds and shall not be considered to be the agent of the Obligated Persons when performing any actions required to be taken by the Trustee under this Agreement. (e) The Trustee shall not have any obligation under this Agreement to investigate or determine whether any filing made under this Agreement complies with federal securities laws or rules. Section 7. Amendment: Waiver. This Agreement may be amended, and noncompliance with any provision of this Agreement may be waived, as may be necessary or appropriate to achieve its compliance with any applicable federal securities law or rule, to cure any ambiguity, inconsistency or formal defect or omission, and to address any change in circumstances arising from a change in legal requirements, change in law, or change in the identity, nature, or status 6 DOA:(04S48.DOCS.MIA180298)CONT _DISC _ AGR-2. of the Obligated Persons, or either of them, or type of business conducted by the Obligated Persons, or either of them. Any such amendment or waiver shall not be effective unless the Agreement (as amended or taking into account such waiver) would have complied with the requirements of the Rule at the time of the primary offering of the Bonds, after taking into account any applicable amendments to or official interpretations of the Rule, as well as any change in circumstances, and until the Obligated Persons and the Trustee shall have received either (a) a written opinion of bond or other qualified independent special counsel selected by the Agency, or determination by the Trustee, that the amendment or waiver would not materially impair the interests of holders or beneficial owners, or (b) the written consent to the amendment or waiver of the Holders of at least a majority of the principal amount of the Bonds then outstanding. Annual Information containing any revised operating data or rmancial information shall explain, in narrative form, the reasons for any such amendment or waiver and the impact of the change on the type of operating data or rmancial information being provided. Section 8. Term. The obligations of each Obligated Person under this Agreement shall remain in effect only for such period that (i) the Bonds are outstanding in accordance with their terms and (ii) such Obligated Person remains an "obligated person" with respect to the Bonds within the meaning of the Rule, subject to the survival of certain provisions to the extent expressly provided in Section 6. The obligation of each Obligated Person to provide the Annual Information and notices of events set forth in subsection 3(a) shall terminate, if and when such Obligated Person no longer remains an "obligated person" with respect to the Bonds, provided such Obligated Person shall provide notice of such termination to each NRMSIR, the MSRB, any SID and the Trustee. Section 9. Sources of Payments: Extent of Covenants: No Personal Liability. The Agency shall be required to use only Trust Fund Revenues (as dermed in the Resolution) and the City shall be required to use only Supplemental Revenues (as dermed in the Resolution) to pay any costs and expenses to be incurred in the performance of this Agreement, and the performance of the obligations hereunder shall be subject to the availability of Trust Fund Revenues and Supplemental Revenues, as applicable, for that purpose. This Agreement does not and shall not constitute a general obligation of the Agency or the City. All covenants, stipulations, obligations and agreements of the Obligated Persons contained in this Agreement are and shall be deemed to be covenants, stipulations, obligations and agreements of the Obligated Persons to the full extent authorized by law. No covenant, stipulation, obligation or agreement of the Obligated Persons contained in this Agreement shall be deemed to be a covenant, stipulation, obligation or agreement of any present or future officer, agent or employee of the Obligated Persons in other than that person's official capacity. Section 10. Notices. Except as otherwise expressly provided in this Agreement, it shall be suffIcient service or giving of any notice, if that notice is either mailed by first class mail, postage prepaid, addressed to the relevant party at its Notice Address, or transmitted by facsimile transmission addressed to the relevant party at its number for receipt of facsimile transmissions set forth in its Notice Address. The Obligated Persons and the Trustee may designate from time to time, by notice given hereunder, any further or different addresses (including facsimile transmission numbers) to which any subsequent notice shall be sent. 7 DOA:(04S48.DOCS.MIA180298]CONT _DISC _ AGR-2. Section 11. Beneficiaries. This Agreement shall inure solely to the benefit of the Obligated Persons, the Trustee and the holders and beneficial owners from time to time of the Bonds, and any official, employee or agent thereof acting for and on its behalf, and shall not create any rights in any other person or entity. Section 12. Severability. In case any section or provision of this Agreement, or any covenant, stipulation, obligation, agreement, act or action, or part thereof made, assumed, entered into, or taken thereunder or any application thereof, is for any reason held to be illegal or invalid, such illegality or invalidity shall not affect the remainder thereof or any other section or provision thereof or any other covenant, stipulation, obligation, agreement, act or action, or part thereof made, assumed, entered into, or taken thereunder (except to the extent that such remainder or section or provision or other covenant, stipulation, obligation, agreement, act or action, or part thereof is wholly dependent for its operation on the provision determined to be invalid), which shall be construed and enforced as if such illegal or invalid portion were not contained therein, nor shall such illegality or invalidity of any application thereof affect any legal and valid application thereof, and each such section, provision, covenant, stipulation, obligation, agreement, act or action, or part thereof shall be deemed to be effective, operative, made, entered into or taken in the manner and to the full extent permitted by law. Section 13. Countemarts. This Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. 8 DOA: [04S48.DOCS.MIA 180298JCONT _DISC _ AGR-2. Section 14. Governing Law. This Agreement shall be deemed to be an agreement made under the laws of the State of Florida and for all purposes shall be governed by and construed in accordance with the laws of the State of Florida. IN WITNESS WHEREOF, the Agency, the City and the Trustee have caused this Agreement to be duly executed in their respective names, all as of the date set forth above. MIAMI BEACH REDEVELOPMENT AGENCY By: Executive Director CITY OF MIAMI BEACH, FLORIDA By: Finance Director FIRST UNION NATIONAL BANK, as Trustee By: Authorized OffIcer 9 DOA:(04S48. DOCS.MIA 180298]CONT _DISC _ AGR-2. EXHmIT A MIAMI BEACH REDEVELOPMENT AGENCY $ TAX INCREMENT REVENUE BONDS, TAXABLE SERIES 1998A (CITY CENTER/HISTORIC CONVENTION VILLAGE) and $ TAX INCREMENT REVENUE BONDS, SERIES 1998B (CITY CENTER/HISTORIC CONVENTION VILLAGE) NOTICE TO OBLIGATED PERSON OF FAILURE TO FILE ANNUAL INFORMATION TO: [Authorized Disclosure Representative], [Obligated Person] The undersigned, as the trustee with respect to the captioned bonds (the "Bonds"), and serving in that capacity under the Continuing Disclosure Agreement dated as of , 1998 (the "Agreement"), among the undersigned and the Miami Beach Redevelopment Agency and the City of Miami Beach, Florida (each an "0bligated Person") hereby notifies you (with each capitalized term used but not dermed herein having the meaning assigned to it in the Agreement), that you, as an Obligated Person, as of the date of this notice, have not provided or caused to be provided to the undersigned the Annual Information that is required under the Agreement to be so provided not later than . The Annual Information is required under the Agreement to be provided both to the undersigned and to each NRMSIR and any SID not later than that date. FIRST UNION NATIONAL BANK, as Trustee Dated: By: Title: DOA:[04S48.DOCS.MIA180298]CONT _DISC _AGR-2. A-I EXHIBIT B MIAMI BEACH REDEVELOPMENT AGENCY $ TAX INCREMENT REVENUE BONDS, TAXABLE SERIES 1998A (CITY CENTER/HISTORIC CONVENTION VILLAGE) and $ TAX INCREMENT REVENUE BONDS, SERIES 1998B (CITY CENTER/HISTORIC CONVENTION VILLAGE) SECOND NOTICE TO OBLIGATED PERSON OF FAILURE TO FILE ANNUAL INFORMATION TO: [Authorized Disclosure Representative], [Obligated Person] The undersigned, as the trustee with respect to the captioned bonds (the "Bonds"), and serving in that capacity under the Continuing Disclosure Agreement dated as of , 1998 (the "Agreement"), among the undersigned and the Miami Beach Redevelopment Agency and the City of Miami Beach, Florida (each an "0bligated Person"), hereby notifies you (with each capitalized term used but not dermed herein having the meaning assigned to it in the Agreement), that you, as an Obligated Person, as of the date of this notice, have not provided to the undersigned the Annual Information that was required under the Agreement to be so provided not later than Please provide the required Annual Information to the undersigned, together with written evidence as to whether that information has been provided to each NRMSIR and any SID and, if so, when it was provided. If, in any instance, the Annual Information was not timely provided to a NRMSIR or any SID in accordance with subsection 2(a)(i) of the Agreement, you may submit a written statement regarding the Obligated Person's failure to comply that would be provided to each NRMSIR or to the MSRB, and to any SID with the notice that the undersigned must give of that failure to comply under subsection 2( c) of the Agreement. Any such written evidence or statement must be received by the undersigned not later than 3:00 p.m., eastern time, on . If the undersigned has not received written evidence by that time that a timely fuing was made, a notice will be filed promptly thereafter with each NRMSIR or the MSRB, and any SID, substantially in the form attached as Exhibit C to the Agreement. FIRST UNION NATIONAL BANK, as Trustee Dated: By: Title: DOA:(04S48.DOCS.MIA180298]CONT _DISC _ AGR-2. B-1 EXHffiIT C MIAMI BEACH REDEVELOPMENT AGENCY $ TAX INCREMENT REVENUE BONDS, TAXABLE SERIES 1998A (CITY CENTER/HISTORIC CONVENTION VILLAGE) and $ TAX INCREMENT REVENUE BONDS, SERIES 1998B (CITY CENTER/HISTORIC CONVENTION VILLAGE) NOTICE TO REPOSITORIES[, MSRB AND] [SID] OF FAILURE TO [TIMELY] FILE ANNUAL INFORMATION TO: [NRMSIRs or MSRB, SID] The undersigned, as the trustee with respect to the captioned bonds (the "Bonds"), and serving in that capacity under the Continuing Disclosure Agreement dated as of , 1998 (the "Agreement"), among the undersigned and the Miami Beach Redevelopment Agency and the City of Miami Beach, Florida (each an "0bligated Person"), hereby notifies you (with each capitalized term used but not dermed herein having the meaning assigned to it in the Agreement), that: [1. , as an Obligated Person, as of the date of this notice, has not provided or caused to be provided to the Trustee the Annual Information for its Fiscal Year that ended " and has not provided any written evidence to the Trustee concerning the timeliness of its filing of that Annual Information with each NRMSIR and any SID. That Annual Information was required under the Agreement to be provided to the Trustee, each NRMSIR and any SID not later than ] [1. , as an Obligated Person provided or caused to be provided the Annual Information that was required to be provided to each NRMSIR and any SID not later than , to [ ] on ]. [2. , as an Obligated Person has provided the attached statement concerning its failure to provide or cause to be provided the Annual Information in accordance with the Agreement. The Trustee does not assume any responsibility for the accuracy or completeness of that statement and has not undertaken, and will not undertake, any investigation to determine its accuracy or completeness.] FIRST UNION NATIONAL BANK, as Trustee Dated: By: Title: cc: [Authorized Disclosure Representative, Obligated Person] DOA:[04S48.DOCS.MIA 18(298)CONT _DISC _ AGR-2. C-l