§ 7. Power to Borrow Money, Incur Indebtedness and Issue Notes; Competitive Bidding Procedure.

(1)

In addition to the power and authority to borrow money otherwise provided by any other provision of this Act or of general law, the Orlando Utilities Commission shall also have power to borrow money and incur indebtedness from time to time with a maturity date of not more than 3 years for the purposes of paying current operating expenses of the Utilities Commission and expenses in connection with the acquisition, operation, maintenance, repair, extension, or improvement of any project relating to electric and water facilities which indebtedness shall be evidenced by notes of the Utilities Commission issued in the manner and subject only to the limitations hereinafter set forth in this section.

(2)

Notes issued by the Utilities Commission pursuant to this section may be negotiable or non-negotiable, and all such notes shall be payable both as to principal and interest solely out of rates, fees, revenues, receipts, charges, or other income including investment income of the Utilities Commission. The notes shall not constitute indebtedness of the Utilities Commission or the City of Orlando within the meaning of any constitutional, statutory or charter provisions or limitations. Such requirement, however, shall not preclude payment from the proceeds of sale of other notes issued pursuant to this section or from amounts drawn on lines of credit pursuant to this section or from any other lawfully available source of funds.

(3)

In order to exercise the power to borrow money pursuant to this section, the Utilities Commission shall adopt a resolution authorizing the sale and issuance of notes for such purpose, which resolution shall specify:

(a)

The purpose or purposes for which the proposed notes are to be issued;

(b)

The maximum principal amount of the notes which may be outstanding at any one time;

(c)

The maximum interest rate or interest rate formula, to be determined in the manner specified in the resolution, to be incurred through the issuance of such notes; and

(d)

The obligations to holders of notes while such notes are outstanding.

(4)

The Utilities Commission may also provide in the resolution, at its discretion, but subject to the limitations contained in this section:

(a)

For the sale and issuance of notes at such times, and in such manner (either through public or private sale), in such amounts, with such maturities, at such rate of discount or interest, and with such other terms and conditions, as may be deemed appropriate by the President of the Utilities Commission or such other officer as may be designated by the Utilities Commission;

(b)

For the appointment of one or more banks or trust companies, either inside or outside the State of Florida, as depository for safekeeping, and as agent for the delivery and payment, of the notes;

(c)

For the employment of one or more persons or firms to assist the Utilities Commission in the sale of the notes;

(d)

For the refunding of the notes, from time to time, without further action by the Utilities Commission, unless and until the Utilities Commission specifically revokes such authority to refund, provided that in no event shall any refunding note be issued with a maturity date later than 3 years from the date of issuance of the original note; and

(e)

For such other terms and conditions as the Utilities Commission may deem appropriate.

(5)

The Utilities Commission may arrange for credit for the purpose of providing an additional source of repayment for indebtedness incurred under this section. Amounts drawn on available lines of credit may be evidenced by negotiable or nonnegotiable promissory notes or other evidences of indebtedness. Such notes or other evidences of indebtedness shall have such terms and conditions as the Utilities Commission may authorize in the resolution approving the same.

(6)

No amount shall be borrowed under the authority of this section which, when added to the amount of all notes or other evidences of indebtedness previously issued pursuant to the authority of this section and then outstanding, shall exceed 50 percent of the total assets of the Utilities Commission as shown on its most recently prepared balance sheet.

(7)

This section is complete authority for the issuance of notes as herein provided and the obtaining of credit hereunder, and no action or proceeding not required by this section shall be necessary for the valid authorization of such indebtedness. The powers conferred by this section are in addition and supplemental to, and are not in substitution for, and the limitations imposed by this section shall not affect, the powers conferred by any other section of this Act or by law. (Laws of Fla. ch. 9861(1923), § 7; Laws of Fla. ch. 80-560, § 1; Laws of Fla. ch. 82-343, § 1; Laws of Fla. ch. 82-415, § 2)

(8)

The Commission shall develop and maintain a competitive bidding procedure which shall be published and made a part of its administrative procedures manual.

(Laws of Fla. ch. 86-421, §1)