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WHEREAS, as authorized by the First Resolution, the City Manager issued a request for proposals for the purchase of QZABs to be issued by the City and the proposal of Wachovia Bank, National Association ("Wachovia") was selected; and WHEREAS, the foregoing arrangements will be reflected in the following documents, forms of which have been filed with the City's official records: (i) a general obligation QZAB of the City; (ii) the Commitment Letter of Wachovia (the "Commitment Letter"); (iii) the Funding Agreement between the City and Wachovia, and its successors and assigns (the "Funding Agreement"); and (iv) the Tax Compliance Agreement of the City and the Portsmouth School Board (the "School Board") (the "Tax Compliance Agreement"); NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Portsmouth, Virginia: The Council hereby determines that it is advisable to contract a debt and to issue and sell general obligation QZABs of the City in an original aggregate principal amount not to exceed $5,950,764.00. The issuance and sale of the general obligation QZABs in one or more series from time to time in accordance with the terms of this resolution are authorized. Each series of the general obligation QZABs shall be styled "City of Portsmouth, Virginia, General Obligation Qualified Zone Academy Bonds," with an appropriate series designation. All such general obligation QZABs shall be referred to below as the "Bonds." The proceeds from the assuance and sale of the Bonds shall be used to pay all or a portion of the costs of the School Projects. The Bonds are designated as qualified zone academy bonds for purposes of Section 1397E of the Tax Code. The full faith and credit of the City are irrevocably pledged for the payment of the principal of and premium, if any, on the Bonds. The Council is authorized to and shall levy and collect annually, at the same time and in the same manner as other taxes of the City are assessed, levied and collected, a tax upon all taxable property within the City, over and above all other taxes authorized or limited by law, and without limitation as to rate or amount, sufficient to pay when due the principal of and premium, if any, on the Bonds to the extent other funds of the City are not lawfully available and appropriated for such propose. Each reference to the payment of the Bonds and the security therefor shall be deemed to include the City's payment obligations under the Funding Agreement. The Bonds shall be dated such date as shall be determined by the City Manager, shall be issued in fully registered form an denominations of $5,000 each or whole multiples thereof (except for a single denomination of less than $5,000), and may be issued at one time or from time to time in a single or multiple series (with appropriate series designations). The Bonds of any series shall be numbered from R-1 upward consecutively. The Bonds shall be issued in such principal amount and shall mature in such amounts and on such dates as may be determined by the City Manager; provided that (i) the original aggregate principal amount of the Bonds shall not exceed $5,950,764.00, (ii) the true interest cost of any series of the Bonds shall not exceed zero percent (0%) per annum thereof, and (iii) the final maturity of any series of Bonds shall not