Common use of Covenant to Budget and Appropriate Clause in Contracts

Covenant to Budget and Appropriate. ‌‌ (a) The Town hereby covenants and agrees to prepare, approve and appropriate (in accordance with applicable law and budgetary processes) in its Annual Budget for each Fiscal Year, by amendment if necessary, Non-Ad Valorem Revenues of the Town in an amount which is sufficient to pay principal of and interest on the Non-Revolving Credit Note for the applicable Fiscal Year, plus an amount sufficient to satisfy any other payment obligations of the Town hereunder for the applicable Fiscal Year. Amounts so budgeted and appropriated shall be directly deposited to the credit of the Sinking Fund, as provided herein. (b) Such covenant and agreement on the part of the Town to budget and appropriate sufficient amounts of Non-Ad Valorem Revenues shall be cumulative, and shall continue until such Non-Ad Valorem Revenues in amounts sufficient to make all required payments on the Non-Revolving Credit Note when due, including any delinquent payments, shall have been budgeted, appropriated and actually paid into the Sinking Fund established hereunder; provided, however, that such covenant shall not constitute a lien, either legal or equitable, on any of the Town’s Non-Ad Valorem Revenues prior to deposit into the Sinking Fund, nor shall it preclude the Town from pledging in the future any of its Non-Ad Valorem Revenues or other revenues to other obligations, nor shall it give the Lender a prior claim on such Non-Ad Valorem Revenues, as opposed to claims of general creditors of the Town nor does it require the Town to levy or collect any particular source of Non-Ad Valorem Revenues. Anything in this Agreement to the contrary notwithstanding, all obligations of the Town hereunder shall be secured only by the Pledged Funds. (c) The Town recognizes the affirmative covenant and obligation to budget (to the extent permitted by and in accordance with applicable law and budgetary processes), appropriate and deposit Non-Ad Valorem Revenues into the Sinking Fund, in amounts sufficient to comply with its obligations under subsection (a) of this Section 5.03. During a Fiscal Year, the Town may not expend moneys not appropriated or in excess of its current budgeted revenues for such Fiscal Year. The covenant and obligation of the Town to budget, appropriate and make payments with respect to the Non-Revolving Credit Note from its Non-Ad Valorem Revenues is subject to the availability of such Non-Ad Valorem Revenues after satisfying funding requirements for obligations having an express lien on or pledge of such revenues and after satisfying funding requirements for essential services of the Town, related to the health, welfare and safety of the inhabitants of the Town, or which are legally mandated by applicable law. (d) The covenant to budget and appropriate in its Annual Budget for the purposes and in the manner stated in this Section 5.03 shall have the effect of making available in the manner described herein Non-Ad Valorem Revenues and placing on the Town a positive duty to budget and appropriate, by amendment, if necessary, amounts sufficient to meet its obligations hereunder; subject, however, in all respects to the restrictions of Section 166.241, Florida Statutes, which provides, in part, that the governing body of each municipality make appropriations for each Fiscal Year, which in any one year, shall not exceed the amount to be received from taxation or other revenue sources; and subject further to the payment of services and programs which are for essential public purposes affecting the health, welfare and safety of the inhabitants of the Town or which are legally mandated by applicable law. (e) Notwithstanding the foregoing covenant of the Town, the Town does not covenant to maintain or continue any of the activities of the Town which generate user service charges, regulatory fees or any other Non-Ad Valorem Revenues. The Town acknowledges that its covenant to budget and appropriate Non-Ad Valorem Revenues, in an amount sufficient to provide for the timely payment of the principal of and interest on the Non-Revolving Credit Note and to deposit such Non-Ad Valorem Revenues so appropriated into the Sinking Fund is for the benefit of the Lender as the holder of the Non-Revolving Credit Note.

Covenant to Budget and Appropriate. ‌‌ (a) The Town City hereby covenants and agrees to prepare, approve the extent permitted by and appropriate (in accordance with applicable law and budgetary processes) , to prepare, approve and appropriate in its Annual Budget for each Fiscal Year, by amendment if necessary, and to deposit to the credit of the Sinking Fund, legally available Non-Ad Valorem Revenues of the Town City in an amount which is sufficient equal to pay principal of and interest on the Non-Revolving Credit Note Bond Service Requirement with respect to the Series 2010 Bonds outstanding hereunder for the applicable Fiscal Year, plus an amount sufficient to satisfy any the other payment obligations of the Town City hereunder for the applicable Fiscal Year, if any. Amounts so budgeted and appropriated shall be directly deposited to the credit of the Sinking Fund, as provided herein. (b) Such covenant and agreement on the part of the Town City to budget and appropriate sufficient amounts of legally available Non-Ad Valorem Revenues shall be cumulative, and shall continue until such legally available Non-Ad Valorem Revenues in amounts sufficient to make all required payments on the Non-Revolving Credit Note hereunder as and when due, including any delinquent paymentsdeposits, shall have been budgeted, appropriated and actually paid into the Sinking Fund (and accounts therein) established hereunder; provided, however, that such covenant shall not constitute a lien, either legal or equitable, on any of the TownCity’s legally available Non-Ad Valorem Revenues prior to deposit into the Sinking Fundor other revenues, nor shall it preclude the Town City from pledging in the future any of its legally available Non-Ad Valorem Revenues or other revenues to other obligations, nor shall it give the Lender Bondholders a prior claim on such Non-Ad Valorem Revenues, as opposed to claims of general creditors of the Town nor does it require the Town to levy or collect any particular source of legally available Non-Ad Valorem Revenues. Anything in this Agreement herein to the contrary notwithstanding, all obligations of the Town City hereunder shall be secured only by the Pledged Funds. (c) The Town recognizes the affirmative covenant and obligation to budget (to the extent permitted by and in accordance with applicable law and budgetary processes), appropriate and deposit legally available Non-Ad Valorem Revenues actually budgeted and appropriated and deposited into the Sinking FundFund (and accounts therein) created under this Agreement, in amounts sufficient to comply with its obligations under subsection (a) of this Section 5.03as provided for herein. During a Fiscal Year, the Town The City may not expend moneys not appropriated or in excess of its current budgeted revenues for such Fiscal Yearrevenues. The covenant and obligation of the Town City to budget, appropriate and make payments with in respect to of the Non-Revolving Credit Note Series 2010 Bonds from its legally available Non-Ad Valorem Revenues is subject to the availability of such legally available Non-Ad Valorem Revenues after satisfying funding requirements for obligations having an express lien on or pledge of such revenues and after satisfying funding requirements for essential governmental services of the Town, related to the health, welfare and safety of the inhabitants of the Town, or which are legally mandated by applicable lawCity. (d) The covenant to budget and appropriate in its Annual Budget for the purposes and in the manner stated in this Section 5.03 shall have the effect of making available in the manner described herein Non-Ad Valorem Revenues and placing on the Town a positive duty to budget and appropriate, by amendment, if necessary, amounts sufficient to meet its obligations hereunder; subject, however, in all respects to the restrictions of Section 166.241, Florida Statutes, which provides, in part, that the governing body of each municipality make appropriations for each Fiscal Year, which in any one year, shall not exceed the amount to be received from taxation or other revenue sources; and subject further to the payment of services and programs which are for essential public purposes affecting the health, welfare and safety of the inhabitants of the Town or which are legally mandated by applicable law. (e) Notwithstanding the foregoing covenant of the Town, the Town does not covenant to maintain or continue any of the activities of the Town which generate user service charges, regulatory fees or any other Non-Ad Valorem Revenues. The Town acknowledges that its covenant to budget and appropriate Non-Ad Valorem Revenues, in an amount sufficient to provide for the timely payment of the principal of and interest on the Non-Revolving Credit Note and to deposit such Non-Ad Valorem Revenues so appropriated into the Sinking Fund is for the benefit of the Lender as the holder of the Non-Revolving Credit Note.

Covenant to Budget and Appropriate. ‌‌ (a) The Town hereby covenants and agrees to prepare, approve budget and appropriate (in accordance with applicable law and budgetary processes) in its Annual Budget for each Fiscal YearBudget, by amendment if necessary, from Legally Available Non-Ad Valorem Revenues of the Town in an amount which is each Fiscal Year, sufficient moneys to pay the principal of and interest on the Non-Revolving Credit Note for the applicable in such Fiscal Year, plus an amount sufficient to satisfy any other payment obligations of until the Town hereunder for the applicable Fiscal YearNote is paid in full. Amounts so budgeted and appropriated shall be directly deposited to the credit of the Sinking Fund, as provided herein. (b) Such covenant and agreement on the part of the Town shall be cumulative to budget the extent not paid, and appropriate sufficient amounts of shall continue until Legally Available Non-Ad Valorem Revenues shall be cumulative, and shall continue until such Non-Ad Valorem Revenues or other available funds in amounts sufficient to make all required payments on the Non-Revolving Credit Note when due, including any delinquent payments, shall have been budgeted, appropriated and actually paid into paid. Notwithstanding the Sinking Fund established hereunder; provided, however, that such foregoing covenant shall not constitute a lien, either legal or equitable, on any of the Town’s , the Town does not covenant to maintain any services or programs now provided or maintained by the Town, which generate non-ad valorem revenues. Such covenant to budget and appropriate does not create any lien upon or pledge of such Legally Available Non-Ad Valorem Revenues prior to deposit until deposited into the Sinking Debt Service Fund, nor shall nor, except as provided in Section 3.10 hereof, does it preclude the Town from pledging in the future any of its Non-Ad Valorem Revenues or other revenues to other obligations, nor shall it give the Lender a prior claim on such Non-Ad Valorem Revenues, as opposed to claims of general creditors of the Town nor does it require the Town to levy or collect any particular source or sources of Nonnon-Ad Valorem Revenuesad valorem revenues. Anything in this Agreement to the contrary notwithstanding, all obligations of the Town hereunder shall be secured only by the Pledged Funds. (c) The Town recognizes the affirmative Such covenant and obligation to budget (to the extent permitted by and in accordance with applicable law and budgetary processes), appropriate and deposit Non-Ad Valorem Revenues into the Sinking Fund, in amounts sufficient to comply with its obligations under subsection (a) of this Section 5.03. During a Fiscal Year, the Town may not expend moneys not appropriated or in excess of its current budgeted revenues for such Fiscal Year. The covenant and obligation of the Town to budget, appropriate and make payments with respect to the Non-Revolving Credit Note from its Legally Available Non-Ad Valorem Revenues is subject in all respects to the availability payment of such Non-Ad Valorem Revenues after satisfying funding requirements for obligations having an express lien on heretofore or pledge of such revenues and after satisfying funding requirements for essential services of the Town, related hereafter (but only to the healthextent permitted by Section 3.10 hereof) entered into, welfare including but not limited to the payment of debt service on bonds and safety of other debt instruments. However, the inhabitants of the Town, or which are legally mandated by applicable law. (d) The covenant to budget and appropriate in its Annual Budget for the purposes and in the manner stated in this Section 5.03 herein shall have the effect of making available in the manner described herein Legally Available Non-Ad Valorem Revenues and placing on the Town a positive duty to budget and appropriate, by amendment, amendment if necessary, amounts sufficient to meet its obligations hereunder; subject, however, in all respects to the restrictions of Section 166.241, Florida Statutes, which provides, in part, that the governing body of each municipality make appropriations for each Fiscal Year, which in any one year, shall not exceed the amount to be received from taxation or other revenue sources; and subject further to the payment of services and programs which are for essential public purposes affecting the health, welfare and safety of the inhabitants of the Town or which are legally mandated by applicable law. (e) Notwithstanding the foregoing covenant of the Town, the Town does not covenant to maintain or continue any of the activities of the Town which generate user service charges, regulatory fees or any other Non-Ad Valorem Revenues. The Town acknowledges that its covenant to budget and appropriate Non-Ad Valorem Revenues, in an amount sufficient to provide for the timely payment of the principal of and interest on the Non-Revolving Credit Note and to deposit such Non-Ad Valorem Revenues so appropriated into the Sinking Fund is for the benefit of the Lender as the holder of the Non-Revolving Credit Note.

Covenant to Budget and Appropriate. ‌‌ (a) The Town Until all Loan Repayments and other amounts owing hereunder are paid or deemed paid pursuant to the provisions of this Loan Agreement, the Public Agency hereby covenants and agrees to prepare, approve and appropriate (in accordance with applicable law and budgetary processes) in its Annual Budget for each Fiscal Yearannual budget, by amendment if necessary, from Non-Ad Valorem Revenues lawfully available in each fiscal year of the Town Public Agency in an amount which is sufficient to pay principal of and or interest on the Non-Revolving Credit Note for Loan Repayments and other amounts owing hereunder becomes due and payable, amounts sufficient, together with other available moneys, to pay the applicable Fiscal Year, plus an amount sufficient to satisfy any Loan Repayments and other payment obligations of the Town hereunder for the applicable Fiscal Year. Amounts so budgeted and appropriated shall be directly deposited to the credit of the Sinking Fundamounts owing hereunder, as provided herein. the same become due (b) whether by redemption, at maturity or otherwise). Such covenant and agreement on the part of the Town Public Agency to budget and appropriate sufficient such amounts of Non-Ad Valorem Revenues shall be cumulativecumulative to the extent not paid, and shall continue until such Non-Non- Ad Valorem Revenues or other legally available funds in amounts sufficient to make all such required payments on the Non-Revolving Credit Note when due, including any delinquent payments, hereunder shall have been budgeted, appropriated and actually paid into the Sinking Fund established hereunder; provided, however, that paid. Once such covenant shall not constitute a lien, either legal or equitable, on any of the Town’s Non-Ad Valorem Revenues prior are so budgeted and appropriated, the same shall constitute "Public Agency Moneys" hereunder. Notwithstanding the foregoing covenant of the Public Agency, the Public Agency does not covenant to deposit into maintain any services or programs, now provided or maintained by the Sinking FundPublic Agency, nor shall it preclude the Town from pledging in the future any of its which generate Non-Ad Valorem Revenues Revenues. (b) Such covenant to budget and appropriate does not create any lien upon or other revenues to other obligations, nor shall it give the Lender a prior claim on pledge of such Non-Ad Valorem Revenues, nor does it preclude the Public Agency from pledging in the future its Non-Ad Valorem Revenues, nor does it require the Public Agency to levy and collect any particular Non-Ad Valorem Revenues, nor does it give the Bank, the Commission, the Administrator, the Trustee or the Noteholders a prior claim on the Non-Ad Valorem Revenues as opposed to claims of general creditors of the Town nor does it require the Town Public Agency. Such covenant to levy or collect any particular source of Non-Ad Valorem Revenues. Anything in this Agreement to the contrary notwithstanding, all obligations of the Town hereunder shall be secured only by the Pledged Funds. (c) The Town recognizes the affirmative covenant and obligation to budget (to the extent permitted by and in accordance with applicable law and budgetary processes), appropriate and deposit Non-Ad Valorem Revenues into the Sinking Fund, in amounts sufficient to comply with its obligations under subsection (a) of this Section 5.03. During a Fiscal Year, the Town may not expend moneys not appropriated or in excess of its current budgeted revenues for such Fiscal Year. The covenant and obligation of the Town to budget, appropriate and make payments with respect to the Non-Revolving Credit Note from its Non-Ad Valorem Revenues is subject in all respects to the availability payment of obligations secured by a pledge of such Non-Ad Valorem Revenues after satisfying funding requirements for obligations having an express heretofore or hereinafter entered into (including the payment of debt service on bonds and other debt instruments). Such covenant to budget and appropriate Non-Ad Valorem Revenues shall not in any way detract from the pledge of and lien on or pledge of such revenues and after satisfying funding requirements for essential services of the TownPledged Revenues, related to if any, provided herein. However, the health, welfare and safety of the inhabitants of the Town, or which are legally mandated by applicable law. (d) The covenant to budget and appropriate in its Annual Budget general annual budget for the purposes and in the manner stated in this Section 5.03 herein shall have the effect of making available for the payment of the Loan Repayments and other amounts owing hereunder in the manner described herein Non-Ad Valorem Revenues and placing on the Town Public Agency a positive duty to budget appropriate and appropriatebudget, by amendment, if necessary, amounts sufficient to meet its obligations hereunder; subject, however, in all respects to the restrictions of Section 166.241, Florida Statutes, which provides, in part, that the governing body of each municipality make appropriations for each Fiscal Year, which in any one year, shall not exceed the amount to be received from taxation or other revenue sources; and subject further to the payment of services and programs which are for essential public purposes affecting the health, welfare and safety of the inhabitants of the Town Public Agency or which are legally mandated by applicable law; and subject, further, to the provisions of Section 129.07, Florida Statutes, insofar as there are not sufficient Non-Ad Valorem Revenues to comply with such covenant to budget and appropriate after the satisfaction of the funding requirements for obligations having an express lien on or pledge of such revenues and the funding requirements for legally mandated or essential governmental services and programs of the Public Agency. (ec) Notwithstanding During such time as any Loan Amounts are outstanding hereunder (including but not limited to at the foregoing time of issuance or incurrence of additional indebtedness which is secured by any Non-Ad Valorem Revenues or is payable from a covenant to budget and appropriate legally available Non-Ad Valorem Revenues that is similar to the one set forth herein) which are secured by the covenant to budget and appropriate legally available Non-Ad Valorem Revenues, the Public Agency agrees and covenants with the Commission and the Bank that: (i) Non-Ad Valorem Revenues (average of actual receipts over the prior two years) must cover projected maximum annual debt service on Debt secured by and/or payable from any Non-Ad Valorem Revenues by at least 1.5x; and (ii) projected maximum annual debt service requirements for all Debt secured by and/or payable from any Non-Ad Valorem Revenues will not exceed 20% of Governmental Fund Revenues (defined as general fund, special fund, debt service fund and capital projects funds), exclusive of (i) ad valorem revenues restricted to payment of debt service on any Debt and (ii) any Debt proceeds, and based on the Public Agency's audited financial statements. For the purposes of these covenants maximum annual debt service means the lesser of the Town, the Town does not covenant to maintain actual maximum annual debt service on all Debt or continue any 15% of the activities original par amount of the Town which generate user service chargesDebt, regulatory fees in each case, secured by or any other payable from Public Agency Non-Ad Valorem Revenues. The Town acknowledges Public Agency agrees that, as soon as practicable after the end of each fiscal year, it shall deliver to the Bank a certificate setting forth the calculations of the financial ratios provided in this Section 6.04(c) and certifying that its it is in compliance with the provisions of this Section 6.04(c). For purposes of the foregoing covenant, all Debt (including Loans hereunder) bearing interest at a variable rate shall be assumed to bear interest at the higher of 6.00% per annum or the actual interest rate borne during the month immediately preceding the date of calculation and shall be assumed to amortize on a level basis over 20 years. Notwithstanding the foregoing covenant, for purposes of calculating annual debt service on any Loan hereunder for which a Draw has been funded, such Loan shall be assumed to be fully funded. (d) The covenant to budget and appropriate Non-Ad Valorem Revenuesprovided in this Section may, in an amount sufficient to provide for with the timely payment consent of the principal of Administrator and interest on the Non-Revolving Credit Note and to deposit such Non-Ad Valorem Revenues so appropriated into the Sinking Fund is for the benefit Bank, be released in lieu of the Lender pledge of Pledged Revenues as provided in Section 6.02 hereof. The release of such covenant shall be evidenced by a certificate executed by the holder of Public Agency and approved in writing by the Non-Revolving Credit NoteBank and the Administrator.

Covenant to Budget and Appropriate. ‌‌(A) The City will require the City Manager to include an amount equal to the Annual District Payment (which amount shall be specifically identified to this Agreement) and the Annual Forest Park Payment in the tentative budget transmitted by the City Manager to the Board of City Commissioners for each Fiscal Year during the term of this Agreement. The tentative budget shall be balanced: i.e., the total of the estimated receipts, including balances brought forward, shall equal the total of the appropriations and reserves. (aB) The Town hereby City covenants and agrees to prepare, approve and appropriate (in accordance with applicable law and budgetary processes) in its Annual Budget for Budget, by amendment, if necessary, from TIF Revenues lawfully available in each Fiscal Year, by amendment if necessary, Non-Ad Valorem Revenues of amounts required to fund the Town in an amount which is sufficient to pay principal of and interest on the Non-Revolving Credit Note for the applicable Fiscal Year, plus an amount sufficient to satisfy any other payment obligations of the Town hereunder for the applicable Fiscal YearAnnual Payment. Amounts so budgeted and appropriated shall be directly deposited to the credit of the Sinking Fund, as provided herein. (b) Such The City's covenant and agreement on the part of the Town to budget and appropriate sufficient such amounts of Non-Ad Valorem TIF Revenues shall be cumulativecumulative to the extent not paid, and shall continue until such Non-Ad Valorem TIF Revenues in amounts sufficient to make all required payments on the Non-Revolving Credit Note when due, including any delinquent payments, shall have been budgeted, appropriated and actually paid into paid. Notwithstanding the Sinking Fund established hereunder; providedforegoing, howeverthe City does not covenant to maintain any services or programs, that such now provided or maintained by the City, which generate TIF Revenues. (C) The foregoing covenant shall to budget and appropriate does not constitute a lien, either legal create any lien upon or equitable, on any pledge of the Town’s Non-Ad Valorem Revenues prior to deposit into the Sinking FundFunds, nor shall does it preclude the Town City from pledging in the future any of its Non-Ad Valorem Revenues or other revenues to other obligationsFunds in the future, nor shall does it require the City to levy and collect any particular Non- Ad Valorem Funds, nor does it give the Lender parties to this Agreement or the holders of the Bonds a prior claim on such to Non-Ad Valorem Revenues, Funds as opposed to claims of general creditors of the Town nor does it require the Town to levy or collect any particular source of Non-Ad Valorem Revenues. Anything in this Agreement to the contrary notwithstanding, all obligations of the Town hereunder shall be secured only by the Pledged FundsCity. (cD) The Town recognizes the affirmative covenant and obligation to budget (to the extent permitted by and in accordance with applicable law and budgetary processes), appropriate and deposit Non-Ad Valorem Revenues into the Sinking Fund, in amounts sufficient to comply with its obligations under subsection (a) of this Section 5.03. During a Fiscal Year, the Town may not expend moneys not appropriated or in excess of its current budgeted revenues for such Fiscal Year. The covenant and obligation of the Town to budget, appropriate and make payments with respect to the Non-Revolving Credit Note from its Non-Ad Valorem TIF Revenues is subject in all respects to the availability payment of such Non-Ad Valorem Revenues after satisfying funding requirements for obligations having an express lien on or secured by a pledge of such revenues TIF Revenues heretofore or hereafter entered into (including the payment of debt service on bonds and after satisfying funding requirements for essential services of other debt instruments). However, the Town, related to the health, welfare and safety of the inhabitants of the Town, or which are legally mandated by applicable law. (d) The covenant to budget and appropriate in its Annual Budget for the purposes and in the manner stated in this Section 5.03 herein shall have the effect of making TIF Revenues available for the Annual Payment, in the manner xxxxxx described herein Non-Ad Valorem Revenues in this Agreement and placing on the Town City a positive duty to budget appropriate and appropriatebudget, by amendment, if necessary, amounts sufficient to meet its obligations hereunder; subject, however, in all respects to the restrictions of Section 166.241129.07, Florida Statutes, which provides, in part, provides that the governing body of each municipality City shall not make appropriations for each in a Fiscal Year, Year which in any one year, shall not exceed the amount to be received from taxation or other revenue sourcessources during such Fiscal Year; and subject further subject, further, to the payment of for services and programs which are necessary for essential public purposes affecting the health, welfare and safety of the inhabitants of the Town City or which are legally mandated by applicable law. (eE) Notwithstanding the foregoing covenant of the Townany other provision hereof, the Town does not covenant City's obligation to maintain or continue any of make the activities of the Town which generate user service charges, regulatory fees or any other Non-Ad Valorem Revenues. The Town acknowledges that Annual Payment will be secured solely by its covenant agreement to appropriate TIF Revenues in its annual budget and appropriate Non-Ad Valorem Revenues, in an amount sufficient pursuant to provide for the timely payment of the principal of and interest on the Non-Revolving Credit Note and to deposit such Non-Ad Valorem Revenues so appropriated into the Sinking Fund is for the benefit of the Lender as the holder of the Non-Revolving Credit Notethis Section 5.02.

Covenant to Budget and Appropriate. ‌‌ (a) The Town In addition to the foregoing Section, the Issuer hereby covenants and agrees to prepare, approve budget and appropriate (in accordance with applicable law and budgetary processes) in its Annual Budget for each Fiscal YearBudget, by amendment if necessarynecessary and to deposit to the credit of the Debt Service Account, from Legally Available Non-Ad Valorem Revenues of the Town in an amount which is each Fiscal Year, sufficient moneys to pay the principal of and interest on the Non-Revolving Credit Note for the applicable in such Fiscal Year, plus an amount sufficient to satisfy Year and any other payment obligations of amounts payable under the Town Note or hereunder, until the Note is paid in full and all other amounts owing hereunder for the applicable Fiscal Yearhave been paid. Amounts so budgeted and appropriated shall be directly deposited to the credit of the Sinking Fund, as provided herein. (b) Such covenant and agreement on the part of the Town Issuer shall be cumulative to budget the extent not paid, and appropriate sufficient amounts of shall continue until Legally Available Non-Ad Valorem Revenues shall be cumulative, and shall continue until such Non-Ad Valorem Revenues or other available funds in amounts sufficient to make all required payments on the Non-Revolving Credit Note when due, including any delinquent payments, shall have been budgeted, appropriated and actually paid into paid. Notwithstanding the Sinking Fund established hereunder; provided, however, that such foregoing covenant shall not constitute a lien, either legal or equitable, on any of the Town’s NonIssuer, the Issuer does not covenant to maintain any services or programs now provided or maintained by the Issuer, which generate non-Ad Valorem Revenues prior ad valorem revenues. Such covenant to deposit into the Sinking Fund, nor shall it preclude the Town from pledging in the future budget and appropriate does not create any lien upon or pledge of its Non-Ad Valorem Revenues or other revenues to other obligations, nor shall it give the Lender a prior claim on such Legally Available Non-Ad Valorem Revenues, nor, except as opposed to claims of general creditors of the Town nor provided in Section 12 hereof, does it require preclude the Town to levy or collect any Issuer from pledging in the future a particular source or sources of Nonnon ad-Ad Valorem Revenuesvalorem revenues. Anything in this Agreement to the contrary notwithstanding, all obligations of the Town hereunder shall be secured only by the Pledged Funds. (c) The Town recognizes the affirmative Such covenant and obligation to budget (to the extent permitted by and in accordance with applicable law and budgetary processes), appropriate and deposit Non-Ad Valorem Revenues into the Sinking Fund, in amounts sufficient to comply with its obligations under subsection (a) of this Section 5.03. During a Fiscal Year, the Town may not expend moneys not appropriated or in excess of its current budgeted revenues for such Fiscal Year. The covenant and obligation of the Town to budget, appropriate and make payments with respect to the Non-Revolving Credit Note from its Legally Available Non-Ad Valorem Revenues is subject in all respects to the availability payment of such Non-Ad Valorem Revenues after satisfying funding requirements for obligations having an express lien on heretofore or pledge of such revenues and after satisfying funding requirements for essential services of the Town, related hereafter (but only to the healthextent permitted by Section 12 hereof) entered into, welfare including but not limited to the payment of debt service on bonds and safety of other debt instruments. However, the inhabitants of the Town, or which are legally mandated by applicable law. (d) The covenant to budget and appropriate in its Annual Budget for the purposes and in the manner stated in this Section 5.03 herein shall have the effect of making available in the manner described herein Legally Available Non-Ad Valorem Revenues and placing on the Town Issuer a positive duty to budget and appropriate, by amendment, amendment if necessary, amounts sufficient to meet its obligations hereunder; subject. The Issuer covenants that as long as the Note shall remain unpaid, howeverit will continue to impose and collect its non-ad valorem revenues at not less than the rates currently in effect, in all respects and will not amend or repeal the provisions of the resolutions, ordinances and/or agreements of the Issuer that impose the non-ad valorem revenues as of the date hereof so as to reduce the rate at which the non-ad valorem revenues are imposed, or otherwise modify the proceedings of the Issuer relevant to the restrictions of Section 166.241, Florida Statutes, which provides, in part, that the governing body of each municipality make appropriations for each Fiscal Year, which non-ad valorem revenues in any one year, shall not exceed manner that would impair or adversely affect the amount to be received from taxation or other revenue sources; and subject further to the payment of services and programs which are for essential public purposes affecting the health, welfare and safety ability of the inhabitants of Issuer to impose and collect the Town or which are legally mandated by applicable law. (e) Notwithstanding the foregoing covenant of the Town, the Town does not covenant to maintain or continue any of the activities of the Town which generate user service charges, regulatory fees or any other Nonnon-Ad Valorem Revenuesad valorem revenues. The Town acknowledges Issuer represents that its covenant to budget and appropriate Nonnon-Ad Valorem Revenuesad valorem revenues are not pledged or encumbered in any manner, except as set forth in an amount sufficient to provide the Issuer’s audited financial statements for the timely payment of the principal of and interest on the Non-Revolving Credit Note and to deposit such Non-Ad Valorem Revenues so appropriated into the Sinking Fund is for the benefit of the Lender as the holder of the Non-Revolving Credit Noteits Fiscal Year ended September 30, 2023.

Covenant to Budget and Appropriate. ‌‌(A) The City will require the City Manager to include an amount equal to the Annual District Payment (which amount shall be specifically identified to this Agreement) and the Annual Forest Park Payment in the tentative budget transmitted by the City Manager to the Board of City Commissioners for each Fiscal Year during the term of this Agreement. The tentative budget shall be balanced; i.e., the total of the estimated receipts, including balances brought forward, shall equal the total of the appropriations and reserves. (aB) The Town hereby City covenants and agrees to prepare, approve and appropriate (in accordance with applicable law and budgetary processes) in its Annual Budget for Budget, by amendment, if necessary, from TIF Revenues lawfully available in each Fiscal Year, by amendment if necessary, Non-Ad Valorem Revenues of amounts required to fund the Town in an amount which is sufficient to pay principal of and interest on the Non-Revolving Credit Note for the applicable Fiscal Year, plus an amount sufficient to satisfy any other payment obligations of the Town hereunder for the applicable Fiscal YearAnnual Payment. Amounts so budgeted and appropriated shall be directly deposited to the credit of the Sinking Fund, as provided herein. (b) Such The City's covenant and agreement on the part of the Town to budget and appropriate sufficient such amounts of Non-Ad Valorem TIF Revenues shall be cumulativecumulative to the extent not paid, and shall continue until such Non-Ad Valorem TIF Revenues in amounts sufficient to make all required payments on the Non-Revolving Credit Note when due, including any delinquent payments, shall have been budgeted, appropriated and actually paid into paid. Notwithstanding the Sinking Fund established hereunder; providedforegoing, howeverthe City does not covenant to maintain any services or programs, that such now provided or maintained by the City, which generate TIF Revenues. (C) The foregoing covenant shall to budget and appropriate does not constitute a lien, either legal create any lien upon or equitable, on any pledge of the Town’s Non-Ad Valorem Revenues prior to deposit into the Sinking FundFunds, nor shall does it preclude the Town City from pledging in the future any of its Non-Ad Valorem Revenues or other revenues to other obligationsFunds in the future, nor shall does it require the City to levy and collect any particular Non- Ad Valorem Funds, nor does it give the Lender parties to this Agreement or the holders of the Bonds a prior claim on such to Non-Ad Valorem Revenues, Funds as opposed to claims of general creditors of the Town nor does it require the Town to levy or collect any particular source of Non-Ad Valorem Revenues. Anything in this Agreement to the contrary notwithstanding, all obligations of the Town hereunder shall be secured only by the Pledged FundsCity. (cD) The Town recognizes the affirmative covenant and obligation to budget (to the extent permitted by and in accordance with applicable law and budgetary processes), appropriate and deposit Non-Ad Valorem Revenues into the Sinking Fund, in amounts sufficient to comply with its obligations under subsection (a) of this Section 5.03. During a Fiscal Year, the Town may not expend moneys not appropriated or in excess of its current budgeted revenues for such Fiscal Year. The covenant and obligation of the Town to budget, appropriate and make payments with respect to the Non-Revolving Credit Note from its Non-Ad Valorem TIF Revenues is subject in all respects to the availability payment of such Non-Ad Valorem Revenues after satisfying funding requirements for obligations having an express lien on or secured by a pledge of such revenues TIF Revenues heretofore or hereafter entered into (including the payment of debt service on bonds and after satisfying funding requirements for essential services of other debt instruments). However, the Town, related to the health, welfare and safety of the inhabitants of the Town, or which are legally mandated by applicable law. (d) The covenant to budget and appropriate in its Annual Budget for the purposes and in the manner stated in this Section 5.03 herein shall have the effect of making TIF Revenues available for the Annual Payment, in the manner described herein Non-Ad Valorem Revenues in this Agreement and placing on the Town City a positive duty to budget appropriate and appropriatebudget, by amendment, if necessary, amounts sufficient to meet its obligations hereunder; subject, however, in all respects to the restrictions of Section 166.241129.07, Florida Statutes, which provides, in part, provides that the governing body of each municipality City shall not make appropriations for each in a Fiscal Year, Year which in any one year, shall not exceed the amount to be received from taxation or other revenue sourcessources during such Fiscal Year; and subject further subject, further, to the payment of for services and programs which are necessary for essential public purposes affecting the health, welfare and safety of the inhabitants of the Town City or which are legally mandated by applicable law. (eE) Notwithstanding the foregoing covenant of the Townany other provision hereof, the Town does not covenant City's obligation to maintain or continue any of make the activities of the Town which generate user service charges, regulatory fees or any other Non-Ad Valorem Revenues. The Town acknowledges that Annual Payment will be secured solely by its covenant agreement to appropriate TIF Revenues in its annual budget and appropriate Non-Ad Valorem Revenues, in an amount sufficient pursuant to provide for the timely payment of the principal of and interest on the Non-Revolving Credit Note and to deposit such Non-Ad Valorem Revenues so appropriated into the Sinking Fund is for the benefit of the Lender as the holder of the Non-Revolving Credit Notethis Section 5.02.

Covenant to Budget and Appropriate. ‌‌ (a) The Town hereby ‌ Subject to the next paragraph, the City covenants and agrees to prepare, approve budget and appropriate (in accordance with applicable law and budgetary processes) in its Annual Budget for each Fiscal Year, by amendment if necessary, Year such amount of Non-Ad Valorem Revenues sufficient to provide for the timely payment of the Town in an amount which is sufficient to pay principal of and interest on the Note and any other amounts required to be paid hereunder. Subject to the next paragraph, the City covenants and agrees and has a positive and affirmative duty to appropriate in its annual budget, by amendment, if necessary, from Non-Revolving Credit Note for Ad Valorem Revenues, and to deposit into the applicable Fiscal Year, plus an amount Debt Service Fund amounts sufficient to satisfy any pay the principal of, premium, if any, and interest on the Note not being paid from other payment obligations of amounts as the Town hereunder for the applicable Fiscal Yearsame shall become due. Amounts so budgeted and appropriated shall be directly deposited to the credit of the Sinking Fund, as provided herein. (b) Such covenant and agreement on the part of the Town City to budget budget, appropriate and appropriate sufficient deposit such amounts of Non-Ad Valorem Revenues shall be cumulativecumulative to the extent not paid, and shall continue until such Non-Ad Valorem Revenues or other legally available funds in amounts sufficient to make all such required payments on the Non-Revolving Credit Note when due, including any delinquent payments, shall have been budgeted, appropriated appropriated, deposited and actually paid into the Sinking Fund established hereunder; provided, however, that paid. No lien upon or pledge of such covenant shall not constitute a lien, either legal or equitable, on any of the Town’s budgeted Non-Ad Valorem Revenues prior shall be in effect until such monies are budgeted, appropriated and deposited as provided herein. The City further acknowledges and agrees that the obligations of the City to deposit into include the Sinking Fund, nor shall it preclude the Town from pledging amount of such amendments in the future any each of its annual budgets and to budget and pay such amounts from Non-Ad Valorem Revenues may be enforced in a court of competent jurisdiction in accordance with the remedies set forth herein. Until such monies are budgeted, appropriated and deposited in the Debt Service Fund as provided herein, such covenant to budget and appropriate does not create any lien upon or other revenues to other obligations, nor shall it give the Lender a prior claim on pledge of such Non-Ad Valorem Revenues, nor does it preclude the City from pledging in the future its Non-Ad Valorem Revenues, nor does it require the City to levy and collect any particular Non-Ad Valorem Revenues, nor does it give the Noteholders a prior claim on the Non-Ad Valorem Revenues as opposed to claims of general creditors of the Town nor does it require the Town to levy or collect any particular source of Non-Ad Valorem RevenuesCity. Anything in this Agreement to the contrary notwithstanding, all obligations of the Town hereunder shall be secured only by the Pledged Funds. (c) The Town recognizes the affirmative Such covenant and obligation to budget (to the extent permitted by and in accordance with applicable law and budgetary processes), appropriate and deposit Non-Ad Valorem Revenues into the Sinking Fund, in amounts sufficient to comply with its obligations under subsection (a) of this Section 5.03. During a Fiscal Year, the Town may not expend moneys not appropriated or in excess of its current budgeted revenues for such Fiscal Year. The covenant and obligation of the Town to budget, appropriate and make payments with respect to the Non-Revolving Credit Note from its Non-Ad Valorem Revenues is subject in all respects to the availability prior payment of obligations secured by a pledge of such Non-Ad Valorem Revenues heretofore or hereafter entered into (including the payment of debt service on bonds and other debt instruments). Anything in this Agreement, the Resolution or the Note to the contrary notwithstanding, it is understood and agreed that nothing herein shall compel the City to maintain or continue any of the activities of the City which generate user service charges, regulatory fees, or any other Non-Ad Valorem Revenues. Notwithstanding Anything herein to the contrary, it is understood and agreed that all obligations of the City hereunder shall be payable from the portion of Non-Ad Valorem Revenues budgeted and appropriated as provided for herein and nothing herein shall be deemed to pledge ad valorem tax power or ad valorem taxing revenues or to permit or constitute a mortgage or lien upon any assets owned by the City and no holder of the Note nor any other Person, may compel the levy of ad valorem taxes on real or personal property within the boundaries of the City or the use or application of ad valorem tax revenues in order to satisfy any payment obligations hereunder or to maintain or continue any of the activities of the City which generate user service charges, regulatory fees, or any other Non-Ad Valorem Revenues. Until such monies are budgeted, appropriated and deposited as provided herein, neither this Agreement, the Resolution, nor the obligations of the City hereunder shall be construed as a pledge of or a lien on all or any Non-Ad Valorem Revenues of the City, but shall be payable solely as provided herein subject to the availability of Non-Ad Valorem Revenues after satisfying satisfaction of funding requirements for obligations having an express lien on or pledge of such revenues and after satisfying funding requirements for essential services of the Townrevenues, related to the health, welfare and safety of the inhabitants of the Town, or which are legally mandated by applicable law. (d) The covenant to budget and appropriate in its Annual Budget for the purposes and in the manner stated in this Section 5.03 shall have the effect of making available in the manner described herein Non-Ad Valorem Revenues and placing on the Town a positive duty to budget and appropriate, by amendment, if necessary, amounts sufficient to meet its obligations hereunder; subject, however, in all respects to the restrictions of Section 166.241, Florida Statutes, which provides, in part, that the governing body of each municipality make appropriations for each Fiscal Year, which in any one year, shall not exceed the amount to be received from taxation or other revenue sources; and subject further to the payment of services and programs which are for essential public purposes affecting the health, welfare and safety of the inhabitants of the Town or which City, and the provisions of Section 129.03 and 129.07, Florida Statutes insofar as there are legally mandated by applicable law. (e) Notwithstanding the foregoing covenant of the Town, the Town does not covenant to maintain or continue any of the activities of the Town which generate user service charges, regulatory fees or any other sufficient Non-Ad Valorem Revenues. The Town acknowledges that its Revenues to comply with such covenant to budget and appropriate after the satisfaction of the funding requirements for obligations having an express lien on or pledge of any Non-Ad Valorem RevenuesRevenues and the funding requirements for essential governmental services of the City. The City agrees that its covenant and agreement to budget, appropriate and deposit Non- Ad Valorem Revenues shall be deemed entered into for the benefit of the registered owner of the Note and this obligation may be enforced by a court of competent jurisdiction in accordance with the remedies set forth herein or in the Resolution. There is hereby created and established a “Capital Improvement Non-Ad Valorem Revenue Note, Series 2024 Debt Service Fund,” which shall be maintained on the books of the City as a separate account (but need not be maintained as a separate bank or deposit account) (the “Debt Service Fund”). Moneys in the Debt Service Fund shall be used only to pay principal of and interest on the Note and for no other purpose. Amounts on deposit in the Debt Service Fund may be invested and reinvested by the City in Authorized Investments maturing or redeemable at the option of the City not later than the date such amounts are needed for the payments required hereunder. All income from the investment of moneys in the Debt Service Fund shall be retained therein and used for the purposes thereof. The City shall not be required to make any further payments into the Debt Service Fund when the aggregate amount of money and Authorized Investments therein is at least equal to the maximum principal amount outstanding on the Note plus accrued interest thereon through maturity. The designation of the Debt Service Fund as a special fund for this Loan Agreement shall not be construed to require the establishment of completely independent, self-balancing fund, as such term is commonly used and defined in governmental accounting, but is intended solely to constitute an amount earmarking of certain moneys and investments for certain purposes and to establish certain priorities for application of such moneys and investments as herein provided. The moneys and investments required to be accounted for in such funds may be pooled with other moneys in a single fund or account, provided that adequate accounting records are maintained to reflect the allocation of the moneys and investments on deposit therein to the respective funds and to control the restricted uses of such moneys and investments for the various purposes as herein provided. Until applied in accordance with this Resolution, the Non-Ad Valorem Revenues of the City on deposit in the Debt Service Fund and other amounts on deposit from time to time therein, plus any earnings thereon, are pledged to the repayment of the Note. In addition, the Grant Receipts are hereby pledged to the repayment of the Note. The City has lawful power and authority to pledge such Non-Ad Valorem Revenues and Grant Receipts and expects that Non- Ad Valorem Revenues of the City together with the Grant Receipts will be sufficient to provide for the timely payment of pay the principal of and interest on the Non-Revolving Credit Series 2024 Note when due as provided herein and to deposit such Non-Ad Valorem Revenues so appropriated into in the Sinking Fund is for the benefit of the Lender as the holder of the Non-Revolving Credit Note.