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July 19. 1960

Mr. Whitfield Palmer. Jr.
P. O. Bax 1504

Ocala, Florida
Dear Whit:

I am listing {or your information some questions
and answers which might be asked you relatiVe to this bond
issue:

Question; Will Shoaraon Hanunill 8: Co. buy bonds
at an interest rate which cannot be greater than 5% including
bond discount?

Answer: Yes. See Paragraph d. Page 3.

Question: When will Shearson Hanunill buy bonds?

Answer: Within 30 days after final mandath' (M. the
Supreme Court. See Paragraph b, Page 7.

Question: What will be the cost of the project?

 

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Answer: $50. 000, 000 to $55, 000, 000 depending on t e ."H 
amount of reserves and contingencies required by the enginee 3-5:. _
and bankers to make the bonds readily saleable. "ffj'
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Question: Does this contract prohibit a further extension.
of the Turnpike?

Answer: Absolutely not.

 

Question: How can it be extended?

page two
Mr. Whitfield Palmer. Jr.
July 19, 1960

Answer: (1) As a separate entity at any time it is
feasible (Florida law)

(2) By refunding the bonds on Projects 1
and Z on call date. which is 1970, or five years earlier by placing in
escrow the proceeds of the bond sale equivalent to the amount
necessary to purchase the outstanding bonds. (This is legal under
the Florida law.)

(3) At any time the annual average net
earnings available for debt service on Project 2(Orlando extension)
during the preceding two years plus,

The annual average net earnings available {or
debt service on Project 2 during the preceding two years from
Project 1. plus

The annual average additional estimated
earnings available for debt service for the succeeding five years
on Projects 1. Z and 3.

Shall not be less than 1. 50 x level debt service.

(Note: This is an open end indenture. and of
course under Option 3 these would be parity bonds. See chart
attached. )

Whit. this pari-paeeu business means "parity entitled
to receive out of same fund without any precedence over each other
and the third option describes the sources of the revenues which
may be used in estimated coverage required to extend an open end
bond issue of this type (parinpassu).

page three
Mr. Whitfield Palmer. Jr.

Alsop has a Trust Agreement under which we ere now
operating, and should you desire to check you will find that before
a turnpike project other than the one alrendy validated from Ft. Pierce
to Jacksonville csn be built as an extension to any turnpike in
operstion. similar procedures and sources of revenue are described.

It was certainly good to be with you, and I am very grateful
to you for your help in getting this Turnpike extended. I hope that
we can get together this weekend in Arcadia. By the way, don't
forget to call me about it.

With best wishes. i am
Sincerely

0.1:.

Thomas B. Manuel

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