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designation "Series 1996,, were issued on February 13, 1996, and $9,900,000 principal amount
<br />of the City of Portsmouth, Virginia, General Obligation Public Utility Bonds authorized for
<br />issuance under the Authorizing Ordinance are authorized but unissued as of the date hereof; and
<br />
<br />WHEREAS, Section 2 of the Authorizing Ordinance authorizes the City to issue and sell general
<br />obligation public utility bond anticipation notes of the City in an aggregate principal amount
<br />equal to the principal amount of the Bonds authorized for issuance thereunder, the sale of any
<br />such general obligation public utility bond anticipation notes and the form and other details
<br />thereof to be approved, ratified and confirmed by the Council; and
<br />
<br />WHEREAS, on August 12, 1998 the City issued and sold $9,900,000 principal amount of the
<br />General Obligation Public Utility Bond Anticipation Notes, dated August 12, 1998 and maturing
<br />on August 15, 1999 (the "1998 Notes"), authorized for issuance by the Authorizing Ordinance in
<br />anticipation of the issuance of the Bonds authorized for issuance thereunder; and
<br />
<br />WHEREAS, the City has determined to issue to the purchaser of the 1998 Notes $9,900,000
<br />principal amount of General Obligation Public Utility Bond Anticipation Notes, dated August
<br />15, 1999 and maturing on March 31, 2000 (the "1999 Notes"), in exchange for the 1998 Notes
<br />and has requested the Council to adopt a resolution to authorized and approve the issuance of the
<br />1999 Notes and the form and other details thereof;
<br />
<br />NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
<br />PORTSMOUTH, VIRGINIA:
<br />
<br />1. In accordance with and pursuant to Section 2 of the Authorizing Ordinance, the Council
<br />hereby approves the issuance to Crestar Securities Corporation of $9,900,000 principal amount
<br />of City of Portsmouth, Virginia, General Obligation Public Utility Bond Anticipation Notes (the
<br />"1999 Notes") in exchange for the 1998 Notes: The 1999 Notes shall be dated August 15, 1999
<br />and shall mature on March 31, 2000. The 1999 Notes shall not be subject to redemption prior to
<br />their stated maturity. There is hereby delegated to the Deputy City Manager for Finance of the
<br />City the authority to determine the rate of interest per annum the 1999 Notes shall bear, such
<br />interest to be calculated on the basis of a 365-day year and the actual number of days between the
<br />date of the 1999 Notes and the stated maturity date thereof; provided, however, that such rate of
<br />interest shall not exceed five percent (5%) per annum: The 1999 Notes shall be numbered from
<br />No. R-1 upwards in order of issuance, shall be of the denomination of $1,000,000 each or any
<br />integral multiple thereof (except that one 1999 Note may be issued in the denomination of
<br />$900,000) and shall be in fully registered form. The form of the 1999 Notes attached to this
<br />resolution as Exhibit A is hereby approved, ratified and confirmed by the Council.
<br />
<br />2. The City covenants that it shall comply with the provisions of Sections 103' and 141-150
<br />of the Internal Revenue Code of 1986, and the Treasury Regulations promulgated or proposed to
<br />be promulgated thereunder, applicable to the 1999 Notes, throughout the term of the 1999 Notes.
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