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request the Council of the City of Portsmouth, Virginia (the "Council") to incur debt and to issue <br />general obligation QZABs in an amount not in excess of $6,143,000 either through the City or the <br />Virginia Public School Authority ("VPSA"), and (ii) to take such actions as maybe necessary or <br />desirable to or for the issuance of valid QZABs under Sections 54A and 54E of the Tax Code and <br />Virginia law; and <br />WHEREAS, in the School Board Resolution the School Board also (i) designated and <br />established the K-12 academic program conducted in the schools listed in Attachment A thereto <br />as a qualified zone academy (the "Portsmouth QZA") and (ii) specified the type and quality of <br />contributions acceptable to be counted as qualified contributions for purposes of the private <br />business contribution requirement; <br />NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of <br />Portsmouth, Virginia: <br />1. That the Council hereby determines that it is advisable to contract a debt and to <br />issue and sell general obligation QZABs of the City in an original aggregate principal amount not <br />to exceed $6,143,000. The issuance and sale of the general obligation QZABs in one or more <br />series from time to time in accordance with the terms of this resolution are authorized. Each series <br />of the general obligation QZABs shall be styled "City of Portsmouth, Virginia, General Obligation <br />Qualified Zone Academy Bonds," with an appropriate series designation. All such general <br />obligation QZABs shall be referred to below as the "Bonds". The proceeds from the issuance and <br />sale of the Bonds shall be used to pay costs of the School Projects and to pay the costs of issuance <br />of the Bonds. <br />2. That the Bonds are hereby designated as qualified zone academy bonds for <br />purposes of Section 54E of the Tax Code. <br />3. That the full faith and credit of the City are irrevocably pledged for the payment of <br />principal and premium, if any, on the Bonds. The Council is authorized to and shall levy and <br />collect annually, at the same time and in the same manner as other taxes of the City .are assessed, <br />levied and collected, a tax upon all taxable property within the City, over and above all other taxes <br />authorized or limited by law, and without limitation as to rate or amount, sufficient to pay when <br />due the principal of and premium, if any, on the Bonds to the extent other funds of the City are not <br />lawfully available and appropriated for such purpose. <br />4. That the Bonds shall be dated such date as shall be determined by the City Manager, <br />shall be issued in fully registered form in denominations of $5,000 each or whole multiples thereof <br />(except for a single denomination of less than $5,000), and maybe issued at one time or from time <br />to time in a single or multiple series (with appropriate series designations). The Bonds of any <br />series shall be numbered from R-1 upward consecutively. The Bonds shall be issued in such <br />principal amount, and shall, if applicable, bear interest at such rate or rates, as shall be determined <br />by the City Manager, and shall mature in such amounts and on such dates as maybe determined <br />by the City Manager; provided that (i) the original aggregate principal amount of the Bonds shall <br />not exceed $6,143,000, (ii) the true interest cost of any series of the Bonds shall not exceed two <br />percent (2%) per annum, and (iii) the final maturity of any series of Bonds shall not exceed the <br />maximum term provided for in Section 54E(d)(5) of the Tax Code. For purposes of the preceding <br />sentence, "true interest cost" shall be determined without regard to any interest to be paid to <br />provide yield protection to the purchaser of the Bonds or its successors and assigns in the event of <br />