1995 Ordinances - Laserfiche WebLink

Home Browse Search

requirements of Section 15.1-227.8 of the Code of Virginia of 1950, as amended, and the Authority has informed the City that the Authority intends Eo designate the Note as a "qualified Eax-exempt obligation" under Section 265(b) of the Internal Revenue Code of 1986, as amended (the "Code"), to encourage its purchase by commercial banks and similar financial institutions. (e) The City has determined that, taking into account all of the facts and circumstances surrounding the Project, including, without limitation, its benefits to the City, the location of the Project in the City of Portsmouth, and the anticipated service no be provided by the Project, it is fair and equitable that the liability represented by the Note be apportioned among the Guaranteeing Units. (f) The City has determined that the relative expected utilization by the City of the Project, compared to the total utilization of the Project, by all Guaranteeing Units as set forth in the Guaranty Agreement, is a fair and equitable method to apportion, once and for all times, the liability assumed by the Guaranteeing Units in the Guaranty Agreement. (g) It is in the best interests of the City to adopt this ordinance and thereby authorize the Guaranty Agreement subject to the execution and delivery thereof by the other three Guaranteeing Units and to the issuance by the Authority of the Note meeting the criteria of the Guaranty Agreement. 2. That the City hereby approves the Guaranty Agreement, in substantially the form presented at this meeting, and the Council hereby authorizes and directs the appropriate City officials to execute and deliver one or more counterparts thereof, when and as requested by the Authority. The full faith and credit of the City are irrevocably pledged to the City's obligation under the Guaranty Agreement to pay its pro rata share (22%) of the principal of, premium, if any, and interest on the Authority's Note as the same become due and payable. The Council shall levy an annual ad valorem tax upon all property in the City subject to local taxation sufficient to pay such amounts on the Note unless other funds are lawfully available and appropriated for timely payment. The Council irrevocably agrees that the final original aggregate principal amount of the Note will be allocated for purposes of Section 265(b) (3) (C) of the Code to the City and the other Guaranteeing Units on the basis of each Guaranteeing Unit's pro rata share of the costs of the Project as follows: