Chapter 104 - BONDS

Sec. 102.118. - Audits of Consolidated Government Constitutional Officers' agencies; discussion with Constitutional Officers; written reply by Constitutional Officers. Chapter 106 - BUDGET AND ACCOUNTING CODE Chapter 104 - BONDS[1]

Footnotes: --- (1) ---

Charter reference— Consolidated Government's power to issue bonds, § 14.04; ad valorem bonds of independent agencies, § 14.05.

State Law reference— Pledging credit, Fla. Const. Art. VII, § 10; local bonds, Fla. Const. Art. VII, § 12; bonds for pollution control and abatement and other water facilities, Fla. Const. Art. VII, § 14; bonds for housing and related facilities, Fla. Const. Art. VII, § 16; bond of circuit court clerk, F.S. § 28.02; bond of sheriff, F.S. § 30.02; bond validation, F.S. Ch. 75; County bonds, F.S. Ch. 130; refunding bonds, F.S. Ch. 131; general refunding law, F.S. Ch. 132; bonds required of County officers, F.S. § 137.01; bond of tax collector, F.S. § 137.02; bond of property appraisers, F.S. § 137.03; bond financing, F.S. Ch. 159; Florida Industrial Development Financing Act, F.S. § 159.25 et seq.; industrial development authorities, F.S. § 159.44 et seq.; municipal authority to borrow, F.S. § 166.111; issuance of municipal bonds, F.S. § 166.121; maximum interest rate on government bonds, F.S. § 218.84.

PART 1. - FIDELITY BONDS

Sec. 104.101. - Blanket bond.

Except as otherwise provided in this Section, officers and employees of the City who are not required by law to furnish an individual bond to qualify for office shall be bonded at the expense of the City in the sum of $100,000 by a public employees' faithful performance blanket bond in favor of the City. The bond shall insure against:

(a)

With respect to all law enforcement officers in the Office of the Sheriff, loss sustained by the City through any fraudulent or dishonest act or acts committed by any of the officers, acting alone or in collusion with others.

(b)

With respect to all other officers and employees of the City, loss caused to the City through the failure of any officer or employee, acting alone or in collusion with others, to perform faithfully his duties or to account properly for all moneys and property received by virtue of his position or employment.

(Ord. 70-650-526; Ord. 71-397-181; Ord. 76-790-428, § 1; Ord. 81-1047-479, § 1; Ord. 83-591-400, § 1)

Note— Former § 120.301.

Sec. 104.102. - Individual bonds.

The following officials shall be bonded at the expense of the City, by either separate coverage under the blanket bond required in Section 104.101 or a separate faithful performance bond insuring against loss as provided in Section 104.101(b), in any case in the following sums:

(a)

Treasurer .....$100,000

(b)

Tax Collector .....350,000

(c)

Property Appraiser .....100,000

(d)

Clerk of the Circuit and County Courts .....200,000

(e)

Sheriff .....250,000

(f)

Supervisor of Elections .....100,500

(g)

Duval County Medical Examiner .....100,000

(Ord. 70-650-526; Ord. 71-397-181; Ord. 76-920-428, § 2; Ord. 80-302-135, § 1; Ord. 81-1047-479, § 1; Ord. 83-591-400, § 1)

Note— Former § 120.302.

Sec. 104.103. - Qualifications of surety; approval and filing of bonds.

Bonds required by this Part shall be in the name of an insurance company authorized to carry on a fidelity insurance business in the State, as surety, and shall be approved by the Mayor and filed with the Corporation Secretary.

(Ord. 70-650-526; Ord. 71-397-181; Ord. 81-1047-479, § 1; Ord. 83-591-400, § 1)

Note— Former § 120.303.

Sec. 104.104. - Examination as to sufficiency of sureties.

The Mayor shall cause the bonds required by this Part to be examined at least once every two years for the purpose of ascertaining the sufficiency of the sureties thereon. If, in the opinion of the Mayor, the surety on a bond is not sufficient, he may require the substitution of sureties or proof of the continued strength of the present surety.

(Ord. 83-591-400, § 1)

Sec. 104.105. - Renewal; continuance of liability.

The Mayor shall cause the bonds required by this Part to be renewed every four years after their dates but he may require the bonds to be renewed more often if he deems this action necessary. The liability of the principal and surety on all fidelity bonds shall continue and cover the period of service ensuing until the appointment and qualification of the successor of the principal. The payment and acceptance of the annual premium on corporate surety bonds shall be a compliance with the requirement for the renewal of the bonds.

(Ord. 83-591-400, § 1)

Sec. 104.106. - Notice of deficiency of principal.

Whenever a deficiency is discovered in the accounts or property of any person covered by a bond under this Part, it shall be the duty of the accounting officers making such discovery to notify at once the head of the department having control over the official business of the person or, if the person is the head of a department, the Mayor, of the nature and amount of the deficiency. It shall be the immediate duty of the head of the department or the Mayor, as the case may be, to notify at once the surety upon the bond of the person of the nature and amount of the deficiency.

(Ord. 83-591-400, § 1)

Sec. 104.107. - Other positions may be covered.

The members of the Boards and Commissions included in Title IV (except the members of the Board of Pension Trustees), the members of the Advisory Boards, the members of the Planning Commission and the members of the Jacksonville Health Facilities Authority may also be included under the blanket facility bond authorized by Section 104.101(b), if authorized by the Mayor and under rules adopted by the Director of Finance and Administration. The cost of obtaining coverage shall be paid by the agencies when members are covered.

(Ord. 83-591-400, § 1; Ord. 86-1136-591, § 1; Ord. 2016-140-E, § 16)

Sec. 104.108. - Additional bond requirements for certain elected officers.

(a)

In addition to the City bond requirements set forth in Section 104.102, each of the elected officials listed below shall give a bond payable to the Governor of the State and his successors in office, in the following sums:

(1)

Tax Collector, pursuant to F.S. § 137.02, $10,000;

(2)

Property Appraiser, pursuant to F.S. § 137.03, $10,000;

(3)

Clerk of the Circuit and County Courts, pursuant to F.S. § 28.02, $100,000;

(4)

Sheriff, pursuant to F.S. § 30.02, $25,000;

(5)

Reserved.

(b)

Funds for the foregoing bonds shall be paid from the budgeted funds of the offices of the foregoing elected officials. The form of the bonds to be obtained under this Section and the surety or sureties therefor shall be approved by the General Counsel or his designee and must comply with the rules, regulations or standards applied by the Florida Department of Banking and Finance. All bonds so approved as being in accordance with the preceding rules, regulations and standards hereby are approved for issuance by the Council, and copies of all such bonds issued shall be filed with the Corporation Secretary.

(Ord. 86-1450-757, § 1)

Editor's note— Section 2 of Ord. 86-1450-757 provides as follows: "All bonds heretofore obtained in order to comply with the Florida Statutes listed in Section 1 are hereby approved and ratified."

PART 2. - AD VALOREM BONDS, REVENUE BONDS AND OTHER OBLIGATIONS

Sec. 104.201. - Definitions.

For the purpose of this Part:

(a)

Bonds mean ad valorem bonds, revenue bonds, certificates of indebtedness, special assessment bonds and certificates and other evidences of indebtedness.

(b)

Revenue bonds mean bonds payable solely from the revenues derived from sources of revenue other than ad valorem taxes on real and personal property.

(c)

Ad valorem bonds mean bonds and the interest thereon which are payable from the proceeds of ad valorem taxes levied on real and personal property situated in Duval County or any part thereof.

(Ord. 83-591-400, § 1)

Note— Former § 16.08 of the Charter.

Sec. 104.202. - Outstanding bonds issued by former governments.

Outstanding bonds issued by former governments are obligations of the Consolidated Government; however, payment of these obligations and the interest thereon shall be made solely from and charged solely against funds derived from the same sources from which the payment would have been made had the Charter not become effective. When ad valorem taxation is pledged to meet the debt service requirements of any bonds issued by a former government, taxes shall be levied by the Consolidated Government for the payment of the bonds only on property which is located in the area where property was taxable for the payment of the bonds immediately prior to October 1, 1968. Bonds payable from special assessments levied against the properties specially benefited by the improvements financed from the proceeds of the bonds shall continue to be payable solely from the particular special assessments. In the event obligations issued by a former government are replaced by refunding bonds issued by the Consolidated Government, the debt service requirements of the refunding bonds shall be payable solely from the same sources from which the refunded bonds were payable.

(Ord. 83-591-400, § 1)

Note— Former § 16.01 of the Charter.

Note— The effective date of the Charter was supplied by the editors pursuant to Section 2.106(b)(5).

Sec. 104.203. - Authorization of bonds.

Revenue bonds may be issued when authorized by the Council. Ad valorem bonds may be issued when authorized by the Council and approved at an election as required by the State Constitution. In authorizing ad valorem bonds, the Council shall determine whether the bonds are to be the obligations of the entire General Services District or only the First Urban Services District, or of some lesser taxing district created by the Council for the issuance of such bonds. Ad valorem bonds shall be obligations of the entire General Services District unless the Council determines that the moneys received from the issuance of the ad valorem bonds will be used primarily for the benefit of the First Urban Services District or other taxing district which is to be obligated for the payment of the bonds and the interest thereon.

(Laws of Fla., Ch. 67-1535; Ord. 83-591-400, § 1)

Note— Former § 16.03 of the Charter.

Sec. 104.204. - Ad valorem bond elections.

When the Council authorizes the issuance of ad valorem bonds, the Council shall direct the holding of an election for the purpose of obtaining approval or disapproval of the proposed ad valorem bonds. The resolution of the Council calling the election shall state the purposes for which the bonds are to be issued, the maximum amount of the bonds, the maximum maturity date of the bonds and the maximum rate of interest which the bonds may bear. More than one bond proposal may be submitted at any bond election. A bond election may be held simultaneously with another election taking place throughout Duval County. If the ad valorem bonds are to be obligations of the entire General Services District, all qualified electors in the entire General Services District shall be entitled to vote thereon. If the ad valorem bonds are to be obligations of the First Urban Services District or some lesser taxing district, only electors residing in the First Urban Services District or the lesser taxing district shall be entitled to vote thereon.

(Laws of Fla., Ch. 67-1535; Ord. 83-591-400, § 1)

Note— Former § 16.04 of the Charter.

Sec. 104.205. - Ad valorem taxation.

When the funds to pay the debt service requirements of any bonds issued pursuant to Sections 104.203 and 104.204 are to be derived from ad valorem taxation, the taxes shall be levied only on the property located in the district the electors of which approved the issuance of the bonds.

(Laws of Fla., Ch. 67-1535; Ord. 83-591-400, § 1)

Note— Former § 16.05 of the Charter.

Sec. 104.206. - Reserved.

Editor's note— The provisions of former § 104.206, relative to the repeal of certain Sections of the Charter, were deleted as part of the Super Supplement to the Code. Former § 104.206 derived from Ord. 83-591-400, § 1.

Sec. 104.207. - Bonds required to be issued in registered form; book-entry systems.

All bonds issued by the City after June 30, 1983 shall be issued in registered form, except the types or classes of bonds as are exempt from this requirement by federal law. Registration shall be as to both principal and interest and must be effected (after the initial issuance to the first holder) only by:

(a)

The surrender of the old instrument, and

(b)

Either:

(1)

The reissuance of the old instrument to the new holder, or

(2)

The issuance of a new instrument to the new holder.

In lieu of the physical surrender and reissuance of an instrument, the Director of Finance and Administration may approve the use of a book-entry system that will reflect the ownership of an interest in the obligation, whether or not physical securities are issued; provided, that the book-entry system is compatible with and acceptable under the regulations issued by the Secretary of the Treasury concerning book-entry systems for municipal securities. The Director shall determine, for each bond issue, whether the City will maintain registration books or utilize a book-entry system and, in either case, whether the City will authorize a transfer agent to do so; and the determination of the Director will be incorporated into the bond instrument, notwithstanding that this is not required by the ordinance authorizing the bond issue. Where deemed necessary by the Director in order to facilitate the registration and reregistration of bonds, a number of preprinted, blank bond forms for each bond issue may be ordered and kept under adequate security or the Director may provide for the use of additional registration sheets to be attached to an instrument whenever the registration blanks on the instrument are filled. If preprinted, blank bond forms are used, they shall be executed in advance by the proper officials of the City in accordance with the ordinance authorizing the bond issue (including the use of facsimile signatures where authorized) but shall not be effective as evidence of a debt obligation of the City until manually endorsed by the Bond Registrar, a Deputy Bond Registrar or a transfer agent; and the signatures affixed at the time of execution of the preprinted, blank bond forms shall be deemed to be the signatures of the proper City officials even though at the time the bond form is endorsed by the Bond Registrar, a Deputy Bond Registrar or a transfer agent and becomes an effective debt obligation, a person who affixed his signature is no longer an official of the City.

(Ord. 83-591-400, § 1; Ord. 2016-140-E, § 16)

Editor's note— The Tax Equity and Fiscal Responsibility Act of 1982 [P.L. 97-248] requires all bonds issued by a municipality after June 30, 1983 to be issued in registered form (with certain exceptions) in order to be tax-exempt under the Internal Revenue Code.

Editor's note— Ordinance 2007-839-E, § 18, authorized updated department/division names pursuant to reorganization.

Sec. 104.208. - Transfer agents; duties, records.

There may be appointed and designated for each bond issue issued after June 30, 1983 one or more transfer agents pursuant to Section 110.207(b). A transfer agent:

(a)

Shall be a corporation authorized under the laws of the state wherein it is located to act as a transfer agent.

(b)

May be located within or without the City.

(c)

Shall enter into a written agreement with the City, which shall be executed by the Mayor and Corporation Secretary on behalf of the City, to serve as a transfer agent for the City and well and faithfully to perform the duties set out therein.

The agreement shall require the transfer agent to provide such security for the faithful performance of its duties as the Treasurer specifies with the approval of the Director of Finance and Administration. The records maintained by a transfer agent relative to any bond issue are and shall be considered to be public records, as defined in F.S. § 119.011, and the transfer agent shall observe and comply with the requirements of F.S. Ch. 119 with respect to those records.

(Ord. 83-591-400, § 1; Ord. 86-1305-736, § 3; Ord. 2016-140-E, § 16)

Editor's note— The Tax Equity and Fiscal Responsibility Act of 1982 [P.L. 97-248] requires all bonds issued by a municipality after June 30, 1983 to be issued in registered form (with certain exceptions) in order to be tax-exempt under the Internal Revenue Code.

Editor's note— Ordinance 2007-839-E, § 18, authorized updated department/division names pursuant to reorganization.

Sec. 104.209. - Physical form of bonds.

The Director of Finance and Administration shall specify the physical form of bonds issued after June 30, 1983 in order to comply with the requirements of Section 104.207 and to expedite transfers of registration under and in compliance with the regulations issued by the Secretary of the Treasury relative to municipal bonds issued after June 30, 1983.

(Ord. 83-591-400, § 1; Ord. 2016-140-E, § 16)

Editor's note— The Tax Equity and Fiscal Responsibility Act of 1982 [P.L. 97-248] requires all bonds issued by a municipality after June 30, 1983 to be issued in registered form (with certain exceptions) in order to be tax-exempt under the Internal Revenue Code.

Editor's note— Ordinance 2007-839-E, § 18, authorized updated department/division names pursuant to reorganization.

Sec. 104.210. - Standardization of bond instruments and registration procedures.

The Director of Finance and Administration and the Treasurer are authorized to conduct studies; attend conferences, workshops, seminars and similar gatherings; and cooperate with other local and State governmental officials, and commercial firms interested in the municipal bond market with respect to the standardization of bond instruments and registration procedures for the efficient, accurate and timely issuance, sale, transfer and registration of the City's bonds in the bond market throughout the life of each bond issue.

(Ord. 83-591-400, § 1; Ord. 86-1305-736, § 3; Ord. 2016-140-E, § 16)

Editor's note— The Tax Equity and Fiscal Responsibility Act of 1982 [P.L. 97-248] requires all bonds issued by a municipality after June 30, 1983 to be issued in registered form (with certain exceptions) in order to be tax-exempt under the Internal Revenue Code.

Editor's note— Ordinance 2007-839-E, § 18, authorized updated department/division names pursuant to reorganization.

Sec. 104.211. - Procedure for sale of bonds.

Bonds issued by the City or its independent agencies pursuant to F.S. Ch. 130 or F.S. Ch. 166, special acts of the Legislature or the Charter shall be offered for public sale and shall be awarded to the bidder whose bid produces the lowest net interest cost for the bonds, calculated in the manner the Council may prescribe in accordance with sound financial practices. Notice of a sale of bonds shall be published at least twice in a newspaper published in and having a general circulation in Duval County, and the first publication shall be made at least 15 days prior to the date set for opening bids. In addition to this publication, notice in writing of the proposed sale shall be given to at least three recognized bond dealers in the State. The Consolidated Government shall reserve the right to reject any and all bids.

(Ord. 81-432-188, § 1; Ord. 83-591-400, § 1)

Note— Former § 128.401.

PART 3. - INDUSTRIAL DEVELOPMENT REVENUE BONDS

Sec. 104.301. - Scope.

The provisions of this Part apply to industrial development revenue bonds issued pursuant to F.S. Ch. 159.

(Res. 82-1110-382, § 1; Ord. 83-591-400, § 1; Ord. 2006-1125-E, § 2)

Editor's note— This Part codifies into positive law the rules adopted by Res. 82-1110-382 for the issuance of industrial revenue bonds by the Council. The rules were adapted from the rules and regulations previously used by the Jacksonville Port Authority.

Sec. 104.302. - Statement of policy.

The Council recognizes the importance of industrial development revenue bonds as a viable method of financing industrial relocation and expansion. The Council encourages both companies interested in locating in Duval County and companies presently located in Duval County to explore the use of industrial development revenue bonds to finance industrial projects. The legislative policy is to issue industrial development revenue bonds in accordance with procedures that will afford protection to the persons involved and will comply with federal and State laws and regulations. The policies and procedures set forth in this Part are for the purpose of providing guidance in the orderly processing of public business and are not intended to provide and do not provide legal, financial or business inducements, advice or counseling for a particular person, firm, corporation or other business entity. Industrial development revenue bonds, or other "conduit" bonds for the benefit of nongovernmental project owners, may be issued by the Council of the City of Jacksonville. Accordingly, as used in this Part, the term "Issuer" shall refer to the City.

(Res. 82-1110-382; Ord. 83-591-400, § 1; Ord. 2006-1125-E, § 2; Ord. 2012-681-E, § 1)

Sec. 104.303. - Reserved.

Editor's note— The provisions of former § 104.303, relative to industrial development revenue bonds subject to State and federal laws and regulations, were deleted as part of the Super Supplement to the Code. Former § 104.303 derived from Res. 82-1110-382; Ord. 83-591-400, § 1; Ord. 85-133-3, § 1.

Sec. 104.304. - Reserved.

Editor's note— The provisions of former § 104.304, relative to bonds exempt from registration, were deleted as part of the Super Supplement to the Code. Former § 104.304 derived from Res. 82-1110-382; Ord. 83-591-400, § 1.

Sec. 104.305. - Application for issuance of bonds; fee.

Application for the issuance of bonds pursuant to this Part shall be made in writing by the applicant to the Economic Development Officer and shall include the following information:

(a)

The applicant's name, its parent company's name, the names of the principal operating officers, business address and telephone number.

(b)

A description of the applicant, its history and operations, including the state(s) of incorporation.

(c)

A description of the proposed project, including its function.

(d)

A specific amount (in U.S. dollars) of the proposed industrial development revenue bonds and a statement by the applicant as to the allocation pool (State or County) from which the bonds are requested to be allocated.

(e)

A detailed schedule of the intended use of the bond proceeds with regard to land acquisition, renovation, construction, engineering and architectural fees, machinery and equipment and legal and financial fees.

(f)

A statement indicating the applicant's estimate of company performance as a result of new investment made possible by industrial development revenue bonds, including the number of new employment positions to be created. This statement shall include a listing of the types of new jobs to be created, including job title of the personnel to be hired, if known.

(g)

A statement indicating the proposed security for the bonds.

(h)

A statement as to the project's compliance with applicable federal, State and local laws, to the effect that interest on the bonds will be exempt from federal income taxation, together with an opinion of the applicant's legal counsel as to the project's compliance with all other applicable laws and regulations. This opinion shall also note under which definition of project in the Florida Industrial Development Financing Act the proposed project intends to qualify and shall contain statements as to whether the project is subject to the State allocation cap, whether the project qualifies as a priority project, and whether the project requires or would be eligible for carryforward consideration.

(i)

The economic and environmental impact of the project upon Duval County and the municipality, if any, in which the project is to be located, together with letters from the appropriate authorities giving evidence of the availability of all necessary utilities and other required public services.

(j)

Independently audited or reviewed financial statements for the applicant for the preceding three years or for such other period as may be required and a schedule of principal repayments of long-term liabilities for such period. In the event of a new company, a letter of commitment from a recognized bank and/or underwriter may be accepted in lieu of the financial statements or in the event the applicant is a wholly-owned subsidiary of a parent company, and no separate financial data is available for such subsidiary, the consolidated financial statements of the parent company may be accepted. All applications submitted shall include that financial information required by and in the detail specified in F.S. § 159.29(2).

(k)

The names and addresses of the attorney and certified public accountant who presently represent the applicant.

(l)

A statement as to the applicant's intent to go, or not to go, through validation proceedings as permitted by the Council, which statement shall also be included in all legal documents pertaining to the issue.

(m)

Copies of all proposed documents which will be utilized in connection with the sale of the bonds, which may be submitted after preliminary approval by the Issuer.

(n)

A draft of the resolution to be considered by the Issuer.

(o)

A draft of the resolution to be considered by the Council giving elected official approval of the bonds in a form approved by the Office of General Counsel.

(p)

Application fee. The amount of the fee is found in www.coj.net/fees.

The application shall be accompanied by payment to the Issuer of a nonrefundable application fee. Applicants shall pay to the Issuer at closing an issuance fee of 0.25 percent of the principal amount of the bond issue, provided that with respect to an applicant that is a not-for-profit organization described in Section 501(c)(3) of the United States Internal Revenue Code, (i) the issuance fee to be paid by such applicant shall not exceed $25,000 and (ii) to the extent that such applicant (including for this purpose affiliates of such applicant that are obligated to repay such bond issue) demonstrates that such applicant is a health care provider that provides indigent patient health care to residents of the City, an amount equal to one-sixth of the amount of such indigent patient health care provided during such applicant's most recent fiscal year for which audited financial statements are available shall be taken as a credit against the issuance fee. All applicants shall also pay at closing all fees charged by the Issuer's special review counsel for its review of the bond documents and representation of the Issuer. As provided in Section 490.108, Ordinance Code, the provisions of this Section 104.305, Ordinance Code, relating to the amount of the application fee, issuance fee and special review counsel fee, shall apply to all bonds issued pursuant to Chapter 490 (Jacksonville Health Facilities Authority), Ordinance Code, in the manner provided in Section 490.108, Ordinance Code. Should inordinate costs occur to the City in the review of the application, such as travel, express mailing or other such extended review costs, the applicant shall be responsible for reimbursement or payment of these costs. Both the application fee and the issuance fee shall be deposited into the City's Countywide Economic Development Fund. If it is intended that interest on the industrial development revenue bonds be excluded from gross income for federal income tax purposes, then the sum of the application fee and the issuance fee shall be reduced, if necessary, to the maximum fee permitted by applicable federal income tax laws and regulations, as advised by bond counsel for the issue.

(Res. 82-1110-382; Ord. 83-591-400, § 1; Ord. 83-1237-716, § 3; Ord. 85-133-3, § 1; Ord. 2006-1125-E, § 2; Ord. 2010-354-E, § 2; Ord. 2012-681-E, § 1; Ord. 2017-665-E, § 3)

Sec. 104.306. - Application review.

(a)

Application submission. The application must be submitted to the Issuer at least two weeks prior to the meeting of the appropriate Issuer committee which will consider the application. Bond counsel should be engaged and directed to contact the Issuer for presentation of the initial resolution of inducement authorizing the proposed industrial development revenue bond issue for the project. The Issuer will not require a particular bond counsel or law firm to be used for preparation of legal documents or bond validation for the industrial development revenue bonds, if the applicant's selection is nationally recognized bond counsel capable of performing these services in accordance with the requirements of Florida law.

(b)

Application review criteria. Unless waived by the Issuer for good cause shown, the Issuer shall adhere to the following selection criteria, policies and procedures in considering bond project approval pursuant to this Part:

(1)

No project shall create a materially adverse effect on the environment.

(2)

No conduit bond issue will be sold in the public bond market without a minimum rating from at least one of the three major bond rating agencies of "A" or better without regard to modifiers. If the rating is achieved based upon third party credit enhancement, the bond documents must prohibit any remarketing of the Issuer's bonds by a remarketing agent, following an optional or mandatory tender for purchase and remarketing, without such minimum rating, unless the Issuer has given its prior written approval to remarket such bonds without the minimum rating.

(3)

A conduit bond issue which does not meet the requirements of (2) above must meet the requirements of (i) or (ii) below:

(i)

A company which is required to file annual or more frequent financial information under a governmental regulatory scheme such as, but not limited to, the Securities Exchange Act of 1934, must meet the following requirements to market its bonds:

(A)

The bonds must be offered only to "qualified institutional buyers" as defined in Rule 144A of the Securities and Exchange Commission ("SEC") in a transaction which qualifies for exemption under Rule 15c2-12(d)(1) of the SEC; and

(B)

An offering document shall be prepared for use in marketing the bonds which must have a legend prominently displayed in bond type that the offering is made only to qualified institutional buyers; and

(C)

The company for whose benefit the bonds are issued must enter into a continuing disclosure agreement to provide the information required under Rule 15c2-12 of the SEC, whether or not the transaction would be exempt from such requirements under such Rule.

(ii)

A company not described in (i) above must meet the following additional requirements to market its bonds:

(A)

The bonds shall be issued in fully registered, certificated form only (not book entry) and shall be marketed only in minimum denominations of $250,000 to investors who deliver an investment letter to the Issuer or its issuing trustee in form satisfactory to the Issuer and its counsel and who agree to resell the bonds only to a purchaser who delivers a similar letter to the Issuer and its counsel as a condition to transfer of ownership on the books of the bond registrar.

(4)

Upon request, and upon demonstration of good cause shown, the Issuer may approve marketing the bonds to "accredited investors" as defined in Regulation D of the Securities and Exchange Commission in addition to, or in lieu of, marketing to "qualified institutional buyers;" and may waive any of the above requirements in its sole and absolute discretion, or may impose additional requirements if in its sole and absolute discretion the credit risk of the company's bonds requires such additional safeguards."

(Res. 82-1110-382; Ord. 83-591-400, § 1; Ord. 85-133-3, § 1; Ord. 2006-1125-E, § 2)

Sec. 104.307. - Resolution of inducement; memorandum of agreement.

At the request of the applicant, the Issuer may, if it decides that the project is sound, meets the selection criteria specified in Section 104.306 and applicable State law, and will benefit the City and State and its residents, adopt a resolution of inducement to authorize the Mayor, the Economic Development Officer, or Chairman of the City's Industrial Development Bond Review committee, whichever is appropriate, to sign a memorandum of agreement between the Issuer and the applicant specifying the terms under which the Issuer will issue industrial development revenue bonds to finance the project for the applicant. After elected official approval has been obtained from the Council or the Mayor, this memorandum of agreement may be utilized for the purpose of applying for a volume cap allocation from the State. Elected official approval will generally expire one year after it has been granted, unless otherwise provided in the approval document.

(Res. 82-1110-382; Ord. 83-591-400, § 1; Ord. 83-1218-614, § 3; Ord. 83-1237-716, § 1; Ord. 85-133-3, § 1; Ord. 2006-1125-E, § 2; Ord. 2012-681-E, § 1)

Sec. 104.308. - Right of Issuer to defer or decline.

The Issuer may decide that it requires additional information prior to a final determination and may instruct the applicant as to its requirements, or the Issuer may decline to consider the application further and suggest that the applicant seek alternative sources of financing.

(Res. 82-1110-382; Ord. 83-591-400, § 1; Ord. 2006-1125-E, § 2)

Sec. 104.309. - Final review and approval.

After all required information has been obtained and reviewed, the appropriate notice has been published and a public hearing on the proposed project has been held pursuant to applicable State and federal law, and the elected official approval has been granted by the Council or the Mayor, the applicant and his attorney shall appear before the Issuer for final review and approval of the completed bond documents.

(Res. 82-1110-382; Ord. 83-591-400, § 1; Ord. 83-1237-716, § 4; Ord. 85-133-3, § 1; Ord. 2006-1125-E, § 2)

Sec. 104.310. - Marketability and sale of bonds.

The action of the Issuer in entering into a memorandum of agreement with the applicant for the issuance of industrial development revenue bonds shall not be construed as indicating the marketability of the bonds, but shall only be an expression of general intent that the Issuer will issue the bonds if a willing purchaser can be found and upon the execution of bond sale documents mutually agreeable to all parties. The obligation for repayment of industrial development revenue bonds rests solely with the applicant and neither the Issuer, the City (if not the Issuer), the State nor any municipality therein is responsible for their repayment or any associated expense. Accordingly, it is the legislative policy that, subject to the conditions contained herein or as may be adopted from time to time, the manner in which the bonds are sold shall be the prerogative of the applicant, so long as the sale complies with applicable federal and State laws and the express policies in this Part. The Issuer shall not require a particular investor, financial institution or investment banker to be used in the sale of the industrial development revenue bonds, if the applicant's selection is deemed responsible by the Issuer and is duly authorized to perform these services in accordance with the requirements of Florida law. The Issuer may, in its discretion, (i) require that its governing body approve by resolution all final terms of sale of the bonds, or (ii) specify guidelines and parameters for such final terms of sale of the bonds without further approval by its governing body. In such later case, the Issuer shall require notification after the sale of the bonds as to the total amount actually sold, the term of the bonds, the date of sale, interest rate and the purchaser and its compensation, all in addition to disclosures required by State law. This information shall be received in writing by the Issuer not later than 24 hours after the sale of the bonds. In addition, the applicant shall forward a bound copy of all executed closing documents, or a CD containing all such documents, to the Issuer within 60 days after the closing on the bond issue.

(Res. 82-1110-382; Ord. 83-591-400, § 1; Ord. 85-133-3, § 1; Ord. 2006-1125-E, § 2)

Sec. 104.311. - Bond validation.

Industrial development revenue bonds issued by the Issuer may go through validation proceedings at the discretion of the Issuer or the applicant. If validation is elected by the applicant, or required by the Issuer, a certified copy of the final judgment validating the bonds and a certificate of no appeal relating thereto or favorable opinion of the Supreme Court of Florida shall be included in the closing documents. Otherwise the General Counsel will be authorized and directed to refuse delivery of the bonds. Whether or not the bonds are validated, the Issuer shall receive an unqualified legal opinion from bond counsel as to validity of the bonds, and as to such other matters as the General Counsel may require, all in form acceptable to the Office of General Counsel.

(Res. 82-1110-382; Ord. 83-591-400, § 1; Ord. 83-1218-614, § 3; Ord. 83-1237-716, § 2; Ord. 2006-1125-E, § 2)

Sec. 104.312. - Waiver of policies and procedures.

The Council reserves the right to waive by resolution any of the policies and procedures established by this Part upon good cause shown.

(Res. 82-1110-382; Ord. 83-591-400, § 1; Ord. 85-133-3, § 1; Ord. 2006-1125-E, § 2)

Sec. 104.313. - Signatories.

All documents necessary to allow bonds to be issued pursuant to this Part shall be prepared by the applicant and shall be executed on behalf of the Issuer as follows:

(a)

Documents to be executed by the City shall be executed by the Economic Development Officer and attested by the Corporation Secretary.

(b)

Documents authenticating official action by the Council shall be executed by the Council Secretary.

(c)

Any document may be modified, updated, altered or amended prior to closing, without further approval of the Issuer, provided that such modification, updating, alteration or amendment does not conflict with or substantially change the provisions for issuance and sale provided in the approving resolution and the signature of the respective signatory for the Issuer on such document shall constitute approval of the change.

(Ord. 2006-1125-E, § 2; Ord. 2012-681-E, § 1)

Sec. 102.118. - Audits of Consolidated Government Constitutional Officers' agencies; discussion with Constitutional Officers; written reply by Constitutional Officers. Chapter 106 - BUDGET AND ACCOUNTING CODE