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The interest on ~ny Bond ~hile registered as to both principal ~nd interest shall be payable by the City by check or draft mailed to the registered owner at such o~er's address as shown on the books of zegistry. The principal of and premium, if any, on the Bonds are payable at the principal office of either of said paying agents for the 3. The' full faith and credit of the City shall be and hereby is irrevocably pledged to the payment of the principal of and interest on the Bonds as the sa~e be~Dm.e due.. In each year white the Bonds, or any of them, are outstanding and unpaid, there s]~ll be assessed, levied and collecbed, at the ssme ti~ ~nd in the s~r~ mz~nner as o~/ner' taxes in the City are assessed, levied and collected, ~upon ~li proper~y within the City su~ech to taxation by the City, a tax sufficient to provide for payment of the principal of and interest on the Bond~ as the same become due, if the revenues of the afore=am undertaking consisting of the water and sewerage system are insufficient to ~et the obligations herein set forth. 4. The Bonds shall not be included in determining the limitation upon the pc~er of the City to incur J~ldebtedness under the provisions of Article VII, Section 10, of the Oons%itu~ion of Virginia, but from and a~ter November 4, 1980, whenever and for so long as the City's water ~d sewerage system fails to produce sufficient revenue to pay the cos~ of operation and ad,ministration (including interest on bonds issued therefor, and the cost of insurance against loss or injuries to persons and property), and an annual amo~%~-ko be placed into a sinkJ-ng fund sufficient to pay at or before maturibf all bonds issued on account of said system, all such bends outstanding shall be included in determining the limitation upon the power of the City to incur indebtedness. 5. The City shall make no use of the proceeds of the sale of %he Bonds wkich would ca~se ~-he Bonds to be "industrial development bends" or "arbitrage bond~!' under Section 103 of the U. S. /nlternal Revenue Code of 1954, as amended, ~nd the City shall comply %~th the applicable reg~la~io~s of the internal Revenhe Service adopted unde~ said Section 103 so long as any Bond is' outstanding. 6. The Bonds shall be sold in conjunction ~rith ~he sale of the $7,000,0CO General] Obligation Public Implement Bonds of the City authorized by this Council at the meeting at which this resolution is adopted. ~ne notice of sale of the Bon~s referred to in Sec+ion tO hereof and the legal notice referred to in Section 11 hereof shall each contain provisions suitably recognizing 'and pro¥.iding with respect to the foregoing. 7. The Bonds shall be executed, for and on behalf of ~_he City, by the ~nual or facsimile signatures of the ~yor and Director of Finance of the City, and the corporate seal o~ the City shall be i~p_ressed or-a facsimile thereof imprinted on the Bonds and attested by the manual or facsimile signature of the City Clerk of the City; provided_, 4