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Exhibit G-Debt Reserve Policy DEBT RESERVE FUND POLICY AGREEMENT . . T DEBT SERVICE RESERVE FUND POLICY AGREEMENT AGREEMENT, dated as of , by and between [the] City of Miami Beach, Florida (the "Issuer") and Financial Guaranty Insurance Company (the "Insurer"). In consideration of the issuance by the Insurer of its Municipal Bond Debt Service Reserve Fund Policy (the "Reserve Policy") with respect to the Issuer's Florida Storrnwater Revenue Bonds Series 2000, together with any parity obligations secured by the same reserve fund (the "Bonds"), issued under the docwnent authorizing the issuance of the Bonds, as amended and supplemented (the "Authorizing Docwnent") and the Issuer's payment to the Insurer of the insurance premiwn for the Reserve Policy, the Insurer and the Issuer hereby covenant and agree as follows: 1. Upon any payment by the Insurer under the Reserve Policy, the Insurer shall furnish to the Issuer written instructions as to the manner in which repayment of amounts owed to the Insurer as a result of such payment shall be made. 2. The Issuer shall repay the Insurer the principal amount of any draws under the Reserve Policy and related reasonable expenses incurred by the Insurer and shall pay interest thereon at a rate equal to the lower of (i) the prime rate of Morgan Guaranty Trust Company of New York in effect from time to time plus 2% per annwn and (ii) the highest rate permitted by law. 3. Repayment of draws, expenses and the interest thereon (collectively, "Policy Costs") shall enjoy the same priority as the obligation to maintain and refill the reserve fund. 4. Payment of Policy Costs shall commence in the first month following each draw, and each such monthly payment shall be in an amount at least equal to 1/12th of the aggregate of Policy Costs related to such draw. 5. Amounts paid to the Insurer shall be credited first to interest due under the Reserve Policy and hereunder, then to the expenses due hereunder and then to principal due under the Reserve Policy and hereunder. As and to the extent that payments are made to the Insurer on account of principal due under the Reserve Policy and hereunder, the coverage under the Reserve Policy will be increased by a like amount. 6. If the Issuer shall fail to repay any Policy Costs in accordance with the requirements of the Authorizing Docwnent and this Agreement, the Insurer shall be entitled to exercise any and all remedies available at law or under the Authorizing Docwnent other than (i) acceleration of the maturity of the Bonds or (ii) remedies which would adversely affect Bondholders. 7. The Issuer shall ascertain the necessity for a claim upon the Reserve Policy and provide notice to the Insurer in accordance with the terms of the Reserve Policy at least two business days prior to each date upon which interest or principal is due on the Bonds. 8. All cash and investments in the reserve fund shall be utilized for making required transfers to the debt service fund for payment of debt service on the Bonds before making any draws on any alternative credit instrument. Repayment of any Policy Costs shall be made prior to replenishment of any such cash amounts. Draws on all alternative credit instruments on which there is available coverage shall be made on a pro rata basis (calculated by reference to coverage then available under each such alternative credit instrument) after applying available cash and investments in the reserve fund. Repayment of Policy Costs and reimbursement of amounts with respect to alternative credit instruments shall be made on a pro rata basis (calculated by reference to the coverage then available under each such alternative credit instrument) prior to replenishment of any cash draws on the reserve fund. 9. The Authorizing Document shall not be modified or amended without the prior written consent of the Insurer. 10. The Authorizing Document shall not be discharged until all Policy Costs owing to Financial Guaranty shall have been paid in full. II. As security for the Issuer's repayment obligations with respect to the Reserve Policy, to the extent that the Authorizing Document pledges or grants a security interest in any revenues or collateral of the Issuer (or other obligor) as security for the Bonds, the Issuer hereby pledges and grants a security interest in all such revenues and collateral, subordinate only to that of the Bondholders. The Issuer shall evidence the Insurer's pledge or security interest by the filing of appropriate Uniform Commercial Code financing and continuation statements. 12. The rate covenant and the additional bonds test (in each case, if applicable) in the Authorizing Document shall be calculated with at least one times coverage of the Issuer's obligations with respect to repayment of Policy Costs then due and owing. Furthermore, no additional bonds may be issued under the Authorizing Document without the Insurer's prior written consent if any Policy Costs are past due and owing to the Insurer. 13. The Issuer shall provide Financial Guaranty with the following information: (a) Budget for each year and annual audited financial statements, within 120 days after the end of its fiscal year. (b) Official statement or similar disclosure document, if any, prepared in connection with the issuance of additional debt. (c) Notice of the redemption, other than mandatory sinking fund redemption, of any of the Bonds. (d) Such additional information as Financial Guaranty may reasonably request from time to time. 14. Notices to the Insurer shall be sent to the following address (or such other address as the Insurer may designate in writing): Financial Guaranty Insurance Company, 115 Broadway, New York, New York 10006, Attention: Risk Management. 15. This Agreement may be executed in counterparts, each of which alone and all of which together shall be deemed one original Agreement. 16. If any one or more of the agreements, provisions or terms of this Agreement shall be for any reason whatsoever held invalid, then such agreements, provisions or terms shall be deemed severable from the remaining agreements, provisions or terms of this Agreement and shall in no way affect the validity or enforceability of the other provisions of this Agreement. 17. All capitalized terms used herein and not otherwise defmed shall have the meanings ascribed to them in the Authorizing Document. 18. This Agreement and the rights and obligations of the parties of the Agreement shall be governed by and construed and interpreted in accordance with Florida law. IN WITNESS WHEREOF, the parties hereto have set their hands as of the date written above. City of Miami Beach, Florida By: Name: Title: Financial Guaranty Insurance Company By: Name: Title: