Sarasota County, Florida Notes to Financial Statements September 30, 2023 The Industrial Revenue Bonds and the Health Facilities Authority Bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership for the acquired facilities transfers to the private-sector entity served by the bond issuance. Neither the County, the State, nor any political subdivision thereof is obligated in any manner to repay the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. G. Legal Debt Margin The County has no legal debt limit as set forth in the constitution of the State of Florida, 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 Countys 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 Government Prompt Payment Act and/or bring an action at law or in equity to remedy and enforce the lenders rights under the lease or terminate the Lease. Commercial Subscription Lender may enforce the Florida Local Government Prompt Payment Act and/or bring an action at law or in equity to remedy and enforce the lenders rights under the subscription or terminate the subscription. Other than the standard default remedies listed above, there are no terms specified in the Countys debt agreements relating to significant events of default with finance-related consequences, termination events with finance-related consequences, or subjective acceleration clauses. 132
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