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<br />
<br />R-07-57
<br />
<br />A RESOLUTION EXPRESSING THE CONCURRENCE OF THE CITY COUNCIL OF
<br />THE CITY OF PORTSMOUTH, VIRGINIA WITH THE INDUCEMENT RESOLUTION
<br />ADOPTED BY THE ECONOMIC DEVELOPMENT AUTHORITY OF HENRICO
<br />COUNTY, VIRGINIA AND APPROVING THE ISSUANCE OF REVENUE BONDS FOR
<br />THE BENEFIT OF MARYVIEW HOSPITAL AND BON SECOURS HEALTH SYSTEM,
<br />INC.
<br />
<br />WHEREAS, Maryview Hospital ("Maryview"), is a Virginia nonstock, non-profit
<br />corporation, which is affiliated with Bon Secours Health System, Inc. ("BSHSI"), a Maryland
<br />nonstock membership corporation, and which has facilities located in the City of Portsmouth,
<br />Virginia; and
<br />
<br />WHEREAS, on October 18, 2007, the Economic Development Authority of Henrico
<br />County, Virginia (the "Henrico Authority") adopted an inducement resolution (the "Inducement
<br />Resolution") (a copy of which is attached hereto as Attachment A) relating to the issuance of its
<br />Revenue Bonds, Series 2008 (Bon Secours Health System, Inc.) (the "Series 2008 Bonds") in
<br />one or more series to, among other things, (i) payor reimburse, or refinance certain indebtedness
<br />the proceeds of which were used by, Maryview for the payment of the costs of acquiring,
<br />constructing, equipping, expanding, enlarging and improving the acute care hospital and related
<br />facilities of Maryview (the "Project"), (ii) provide working capital for BSHSI and Maryview, if
<br />deemed necessary or desirable by BSHSI and Maryview, (iii) pay a portion of the interest on the
<br />Series 2008 Bonds, if deemed necessary or desirable by BSHSI and Maryview, (iv) establish a
<br />debt service reserve fund, if deemed necessary or desirable by BSHSI and Maryview, and (v)
<br />pay certain costs, including the costs of credit enhancement or a liquidity facility, incurred in
<br />connection with the issuance of the Series 2008 Bonds (collectively, the "Financing Purposes"),
<br />all pursuant to a master financing plan for certain health care facilities affiliated with BSHSI,
<br />which plan includes the above-described financing by the Henrico Authority for the benefit of
<br />Maryview; and
<br />
<br />WHEREAS, the Series 2008 Bonds to be issued for the benefit of Maryview shall not
<br />exceed $30,000,000; and
<br />
<br />WHEREAS, the Series 2008 Bonds will be issued pursuant to the Virginia Industrial
<br />Development and Revenue Bond Act, Chapter 49, Title 15.2, Code of Virginia of 1950, as
<br />amended (the "Act"), and will be limited obligations of the Henrico Authority payable solely
<br />from the revenues and receipts derived from payments provided by BSHSI, Maryview, and
<br />certain other related corporations; and
<br />
<br />WHEREAS, the facilities of Maryview to be financed are located within the boundaries
<br />of the City of Portsmouth, Virginia, which has created the Economic Development Authority of
<br />the City of Portsmouth, Virginia (the "Portsmouth Authority"), and Section 15.2-4905 of the Act
<br />permits the issuance of the Series 2008 Bonds by the Henrico Authority for the benefit of
<br />Maryview if the governing body of the City of Portsmouth, Virginia concurs in the Inducement
<br />Resolution adopted by the Henrico Authority; and
<br />
<br />WHEREAS, Section 147 (f) of the Internal Revenue Code of 1986, as amended (the
<br />"Code"), provides that the highest elected governmental official of the governmental unit having
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