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AN ORDINANCE AUTHORIZING THE PLACING OF A DE~N~D NOTE C~ DEC~ER 31,
<br />1959, WITS T~LE CF-ASE M-a~NPIATT~N BANK IN ANTICIPATION OF THE PROCEEDS
<br />FRO~ THE ISSUE OF $6,800,000. GENERAL OBLIGATION BONDS WI{ICH ~ERE
<br />AUTHORIZED BY AN ORDIKANCE ADOPTED ON OCT~IBER 13, 1959, SUCH NOTE NOT
<br />TO EXCEED ~5,000,000. AT AN INTEREST RATE NOT TO EXCEED THREE (3) PER
<br />CE~TU~ PER A-NNU~, AND ASSIGNING THE PROCEEDS OF SAID BOND ISSUE AS
<br />COLLATERAL o
<br />
<br /> WHEREAS, by virtue of an order entered in the Circuit Court of Norfolk
<br />County on Au~uSt 20, 1959, annexin3 certain territory to the City Of Portsmouth
<br />effect, ire January 1, t980, the City will be required to pay to said County on
<br />the effective date of annexation a sum, sub3ect to adjustment based on inventory
<br />of certain equipment, which is estimated to be not in excess of $5,000,000; and
<br />
<br /> ~VrLEREAS, in order to finance the aforesaid payment due said County on the
<br />effective date of annexation and other obligations imposed by the aforesaid order,
<br />the issuance of $8,800,000. General Obligation Bonds of this City, to be dated
<br />January 1, 1980, was authorized by an ordinance duly adopted on October 13, 1959;
<br />and
<br />
<br /> %Wn-ERFAS, the delivery of said General Obligation Bonds to the purchasers
<br />and payment therefor cannot be accomplished until January 4, 1960, because of
<br />legal and b~nkin~ holidays, thereby making it necessary that the City borrow not
<br />to exceed ~5,000,000. in anticipation of the receipt of the proceeds of said bond
<br />sale for the period betwee~ Dece~er 31, 1959, and the date of delivery of ~nd
<br />payment for the said bonds, which action is authorized by Section 15-886~64 of
<br />the Code of Virginia, 1950~ as ~mended; and
<br />
<br /> W~EREAS, The Chase Manhattan Bank has a~reed to lend on demand up ~o
<br />88,000,000. for this purpose a~ an annual ~ate of interest not 5o exceed three
<br />(~) per cen~um per annum, provided the proceeds of the said bond sale are pledged
<br />to payment of the note and interest thereon.
<br />
<br /> NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Portsmouth,
<br />Virginia:
<br />
<br /> Section 1. That the City Treasurer and the City Clerk are hereby authorized
<br />and directed to siam and deliver in behalf of the City of Portsmouth, Virginia, a
<br />bond anticipation note pursuant to Section 15-888o84 of the Code of Virginia,
<br />1950, as amended, in an amount not to exceed $5,000,000., bearing interest at a
<br />r~te not to exceed three ($) per centnm per annum, to be dated December 31, 19~9,
<br />payable to the order of The Chase ~mnhattan Baok in the City of New York, New
<br />York, within thirty days, on demand, said note to be in form substantially as
<br />follows:
<br />
<br />Portsmouth, Virginis
<br />December 31, 1959.
<br />
<br /> Within thirty days, on d~ma~d, the City of Portsmouth promises
<br />to pay to The Chase ~a~hattan Ba~, or order, negotiable and pay-
<br />able withomt offset. ~ saia ~nk in New York, New York,
<br /> Dollars for value
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