Subsequently other Florida governments joined the Commission including, among others, Palm Beach County, Dade County, the City of Miami, the City of Lakeland, the City of Vero Beach, Polk County and the City of Coral Gables. The Commission was created to provide large, sophisticated governments the opportunity to work together to create low cost flexible financing instruments. The program documents provide that each loan is responsible for its proportionate share of the accrued interest on the bonds together with all on-going administrative cost including letter of credit fees, remarketing cost, trustee fees and paying agent fees. Interest and administrative costs on the loans are billed by the Trustee on a monthly basis by the 5th of each month and are deemed delinquent if not paid by the 15th.
All loans are independent and there is no cross indemnification between and among the participants.
Prepayment of a portion or all of the outstanding balance can be made at any time without penalty. The loan is secured by a covenant to budget and appropriate from all non-advalorem revenues of the City and has no specific claims on any revenue stream. The loan further provides no mandatory amortization until the 25th year of the loan with all principal to be retired by January 30, 2016. The proceeds of the loan were originally used for system improvements for the City's water, sewer and gas systems. In 1992 the Commission began the development of a second variable rate program.