RESOLUTION NO. ______

A RESOLUTION OF THE CITY OF LEESBURG, FLORIDA AMENDING SECTION 17 OF CITY RESOLUTION NO. 7965, BY PROVIDING THAT “PERMITTED INVESTMENTS” IN REGARD TO THE CITY’S UTILITY SYSTEM REVENUE BONDS, SERIES 2007A AND TAXABLE UTILITY SYSTEM REVENUE BONDS, SERIES 2007B MAY ALSO INCLUDE FLORIDA SURPLUS ASSET FUND TRUST AS PROVIDED HEREIN AND PROVIDING AN EFFECTIVE DATE.

            WHEREAS, pursuant to Resolution No. 7143, as amended and supplemented, and particularly as amended and supplemented by Resolution No. 7965 (collectively, the “Bond Resolution”), the City of Leesburg, Florida (the “City” or the “Issuer”) has issued its Utility System Revenue Bonds, Series 2007A and its Taxable Utility System Revenue Bonds, Series 2007B (collectively, the “2007 Bonds”); and

           

            WHEREAS, Section 17 of City Resolution No. 7965 contains a list of “Permitted Investments” in which proceeds of the 2007 Bonds and amounts related thereto may be invested; and

           

            WHEREAS, the City hereby determines it to be in the best interest of the City and its residents that Resolution No. 7965 of the City be amended to provide that included as part of “Permitted Investments” is the Florida Surplus Asset Fund Trust; and

 

            WHEREAS, Section 15.03 of the Bond Resolution provides that when a Credit Facility is in full force and effect as to a Series of Bonds and the Bond Insurer is not insolvent and no default under the Credit Facility exists on the part of the Bond Insurer, the Bond Insurer in place of the Registered Owner of Bonds may consent to supplemental resolutions and such consent shall be deemed to constitute the consent of the Registered Owners of all the Bonds secured by such Credit Facility, and

 

            WHEREAS, the only Series of Bonds affected by the proposed amendment set forth herein are the 2007 Bonds; and

 

            WHEREAS, the Bond Insurer of the 2007 Bonds is MBIA Insurance Corporation (“MBIA”); and

 

            WHEREAS, MBIA in its consent attached hereto has certified that its financial guaranty insurance policy issued in connection with the issuance of the 2007 Bonds (the “Credit Facility”) is in full force and effect and that it is not insolvent and there is no default under the Credit Facility.


 

 

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA, AS FOLLOWS:

 

SECTION 1.  The “WHEREAS” clauses contained hereinabove are true and accurate in all respects and are hereby included as a material part of this Resolution.

 

SECTION 2.  Subsection 1 of Section 17 of Resolution No. 7965 is hereby amended by adding a subsection (M) to read as follows:

“ (M) Florida Surplus Asset Fund Trust; so long as the trust (i) maintains AAAm criteria and is rated AAAm by S&P, (ii) the final maturity of all investments therein are 397 days or less, and (iii) the weighted average maturity of the investments therein is less than 60 days.”

SECTION 3.  All prior resolutions of the City, including the Bond Resolution, inconsistent with the provisions of this Resolution are hereby modified, supplemented and amended to conform with the provisions herein contained and, except as so modified, supplemented and amended hereby, shall remain in full force and effect.

 

 

SECTION 4.  This Resolution shall become effective immediately upon its adoption.

Adopted this 23rd day of March, 2009.

 

 

 

[OFFICIAL SEAL]

 

 

CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA

 

 

 

By:                                                                      

       Mayor

 

 

 

ATTEST:

 

 

_________________________

City Clerk

 

 

 

Approved as to Form and Correctness:

 

 

_________________________

City Attorney