|
September 27, 1977
<br />
<br /> The Bonds maturing on and after January 1, 1989, shall be subject to redemption at
<br />the option of the City prior to their stated maturities on or after January 1, 1988, in
<br />whole at any time, or in part from time to time on any interest payment date in any order
<br />determined by the City (except that if less than all of the Bonds of a maturity are called
<br />for redemption, the particular Bonds of such maturity to be redeemed shall be selected by
<br />lot), .uPOn payment of the principal amount of the Bonds to be redeemed together with the
<br />interest accrued thereon to the date fixed for redemption plus a premium of one-half of
<br />one percent of the principal amount of each Bond to be redeemed for each six month period
<br />or fraction thereof between the date fixed for redemption and the stated maturity date of
<br />such Bond, such premium in any event not to exceed three percent of such principal amount.
<br />Any such declaration of the maturity of Bonds to be redeemed and of the selection of Bonds
<br />within a maturity to be redeemed shall be made by the Director of Finance of the City.
<br />
<br /> Notice of such redemption, specifying the date, numbers and maturities of the Bonds
<br />to be redeemed, the date and place fixed for their redemption and'~the premium, if any, payabl~
<br />upon such redemption, shall be given by the City by publication of such notice once in a
<br />newspaper printed in the English language and customarily published on each business day
<br />and of general circulation in the City and once in at least one newspaper or financial public~
<br />tion printed in the English language and customarily published on each business day in the
<br />City of New York, New York, the date of publication of such notice in each case to be at
<br />least thirty days prior to the date fixed for redemption. If any Bond called for redemption
<br />is registered as to principal only or as to both principal and interest, notice of the redemp-
<br />tion thereof shall be mailed not less than thirty days prior to the date fixed for redemption
<br />by registered mail to the registered owner of such Bond at such owner's address as shown
<br />on the books of registry; provided, however, that notice of redemption by publication need
<br />not be given to the registered owner of any registered Bond if notice of redemption shall
<br />have been mailed as aforesaid, and if notice of redemption is given by publication as aforesaJ
<br />then neither the failure to mail such notice to the registered o~¢ner of any registered Bond
<br />nor any defect in any notice so mailed shall affect the sufficiency of the proceedings
<br />for the redemption of such Bonds. When notice of redemption of Bonds shall have been given
<br />as hereinabove set forth, and payment of the principal amount of the Bonds so called for
<br />redemption and of the accrued interest and premium, if any, payable upon such redemption
<br />shall have been duly made or provided for, interest on such Bonds shall cease from and after
<br />the date so specified for their redemption and any coupons representing such interest shall
<br />be void.
<br />
<br /> The Bonds may be registered by the holder as to principal only or as to both principal
<br />and interest in accordance with the provisions for such registration to be endorsed thereon
<br />as set forth in Section 9 hereof.
<br />
<br /> 2. The principal of, and premium, if any, and interest on the Bonds shall be payable
<br />in such coin or currency of the United States of America as at the respective dates of payment
<br />is legal tender for the payment of public and private debts. If any Bond shall not then
<br />be registered as to both principal and interest the interest thereon payable prior to maturit~
<br />shall be payable at the principal office of The Chase Manhattan Bank (National Association)
<br />in the City of New York, New York, as the paying agent for the Bonds. The interest on any
<br />Bond while registered as to both principal and interest shall be payable by the City by
<br />check or draft mailed to the registered owner at such owner's address as shown on the books
<br />of registry. The principal of and premium, if any, on the Fonds are payable at the principal
<br />office of the said paying agent for the Bonds.
<br />
<br /> 3. The full faith and credit of the City shall be and hereby is, irrevocably pledged
<br />to the payment of the principal of and interest on the Bonds as the same become due. In
<br />each year while the Bonds, or any of them, are outstanding and unpaid, there shall be assesse(
<br />levied and collected, at the same time and in the same manner as other taxes in the City
<br />are assessed, levied and collected, upon all property of the City subject to taxation by
<br />the City, a tax sufficient to provide for the payment of the principal of and interest on
<br />the Bonds as the same become due, if the revenues of the aforesaid undertaking consisting
<br />of the water and sewerage system is insufficient to meet the obligations herein set forth.
<br />
<br /> 4. The Bonds shall not be included in determining the limitation upon the power of
<br />the City to incur indebtedness under the provisions of Article VII, Section 10, of the Consti-
<br />tution of Virginia, but from and after November 4, 1980, whenever and for so long as the
<br />City's water and sewer system fails to produce sufficient revenue to pay the cost of operatio~
<br />and administration (including. interest on bonds issued therefor, and the cost of insurance
<br />against loss or injuries to persons and property), and an annual amount to be covered into
<br />a sinking fund sufficient to pay at or before maturity all bonds issued on account of said
<br />system, all such bonds outstanding shall be included in determining the limitation upon
<br />the power of the City to incur indebtedness.
<br />
<br /> S. The City shall make no use of the proceeds of the sale of the Bonds which would
<br />cause the Bonds to be "arbitrage bonds" under Section 1OS(c) of the U. S. Internal Revenue
<br />Code of 19S4, as amended, and the City shall comply with the applicable regulations of the
<br />Internal Revenue Service adopted under said Section 1OS(c) so long as any Bond is outstanding.
<br />
<br /> 6. The Bonds shall be sold in conjunction with the sale of the $7,000,000. General
<br />Obligation Bonds of the City authorized by this Council at the meeting at which this resolutic
<br />is adopted. The notice of sale of the Bonds referred to in Section 10 hereof and the legal
<br />notice referred to in Section 11 hereof shall each contain provisions suitably recognizing
<br />and providing with respect to the foregoing.
<br />
<br /> 7. The Bonds shall be executed, for and on behalf of the City, by the manual or facsimi]
<br />signatures of the Mayor and City Treasurer of the. City, and the corporate seal of the City
<br />shall be impressed or a facsimile thereof imprinted on the Bonds and attested by the manual
<br />or facsimile signature of the City Clerk of the City; provided, that at least one of such
<br />
<br />
<br />
|