Sarasota County, Florida Notes to Financial Statements September 30, 2021 G. Legal Debt Margin The County has no legal debt limit as set forth in the Florida constitution per Florida Statute 200.181. H. Debt Agreements Terms specified in debt agreements entered into by the County includes provisions related to remedies available to the lender in the event of default. A summary of the default remedies expressed in the County’s debt agreements, summarized by type of borrowing include the following: Issue Type Default Remedy General obligation bonds Enforcement of pledge of the general tax power of the County. Revenue bonds Lender may protect and enforce any and all rights under the Laws of the State of Florida or granted and contained in the Bond Resolution. Notes payable Note shall bear interest at the Default Rate and the Lender may seek enforcement of and exercise all remedies available to it under any applicable law. Commercial paper Lender may seek enforcement of and exercise all remedies available to it under the loan agreement or any applicable law. State Infrastructure Bank loan Lender may pursue any available remedy at law or in equity, including those listed in the loan agreement. Commercial lease Lender may enforce the Florida Local Governnment Prompt Payment Act and/or bring an action at law or in equity to remedy and enforce the lender’s rights under the lease or terminate the Lease. Other than the standard default remedies listed above, there are no terms specified in the County’s debt agreements relating to significant events of default with finance-related consequences, termination events with finance-related consequences, or subjective acceleration clauses. I. Restrictive Debt Covenants Governmental Activities Official statements and County resolutions authorizing the general obligation and revenue bonds and notes establish certain accounts and determine the order in which certain revenues are to be deposited into those accounts. All required balances were maintained at year-end. In connection with the commercial paper debt the County has covenanted to appropriate in its annual budget, from Non-Ad Valorem Revenues lawfully available, amounts sufficient to pay the debt service in each fiscal year. The County was in compliance with this covenant to budget and appropriate at year-end. Additional details on the relationship of the pledged amounts to the total, for specific revenues and principal and interest, can be found in the Pledged Revenue Coverage Schedules. 124
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