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March 13, 2001
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<br /> WHEREAS, of the $3,720,000 principal amount of City of Portsmouth, Virginia
<br />General Obligation Public Improvement Bonds authorized for issuance under the 1998
<br />Resolution, a portion of the 2000 Notes in the principal amount of $3,000,000 was
<br />issued in anticipation of the issuance of the bonds authorized by the 1998 Resolution;
<br />and
<br />
<br /> WHEREAS, the City Council, on April 27, 1999, after a duly advertised and
<br />conducted public hearing, adopted a resolution authorizing the issuance of $5,200,000
<br />principal amount of City of Portsmouth, Virginia, General Obligation Public Improvement
<br />Bonds for the purpose of providing funds to pay the costs of various public
<br />improvements to be located in the City and authorizing the issuance of a like principal
<br />amount of City of Portsmouth, Virginia, General Obligation Public Improvement Bond
<br />Anticipation Notes in anticipation of the issuance of such bonds (the "1999 Resolution");
<br />and
<br /> WHEREAS, of the $5,200,000 principal amount of City of Portsmouth, Virginia
<br />General Obligation Public Improvement Bonds authorized for issuance under the 1999
<br />Resolution, a portion of the 2000 Notes in the principal amount of $5,000,000 was
<br />issued in anticipation of the issuance of the bonds authorized by the 1999 Resolution;
<br />and
<br /> WHEREAS, the City has determined to issue $28,000,000 aggregate principal
<br />amount of City of Portsmouth, Virginia General Obligation Public Improvement and
<br />Public Utility Bond Anticipation Note, Series 2001 (the "2001 Notes") for the purpose of
<br />refinancing the 2000 Notes which mature on March 31, 2001.
<br />
<br /> NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
<br />OF PORTSMOUTH, VIRGINIA.
<br />
<br /> 1. Authorization of Bonds and Use of Proceeds. The City Council hereby
<br />determines that it is advisable to contract a debt and to issue and sell general obligation
<br />bond anticipation notes of the City in the aggregate principal amount not to exceed
<br />$28,000,000 and the issuance and sale of the 2001 Notes are hereby authorized. The
<br />proceeds from the issuance and sale of the 2001 Notes shall be used to pay the
<br />principal of the 2000 Notes at maturity (or to be exchanged therefor).
<br />
<br /> 2. Pled.qe of Full Faith and Credit. The full faith and credit of the City are hereby
<br />irrevocably pledged for the payment of the principal of and interest on the 2001 Notes
<br />as the same become due and payable. The City Council shall levy an annual ad
<br />valorem tax upon all property in the City, subject to local taxation, sufficient to pay the
<br />principal of and interest on the 2001 Notes as the same become due and payable
<br />unless other funds are lawfully available and appropriated for the timely payment
<br />thereof.
<br />
<br /> 3. Details and Sale of the 2001 Notes. The City Manager and the Chief
<br />Financial Officer of the City, or either of them, are authorized and directed to provide for
<br />the issuance and sale of the 2001 Notes in exchange for the 2000 Notes or to such
<br />other purchaser of the 2001 Notes as such officer or officers may determine, upon the
<br />terms and conditions as such officers, or either of them, may approve; provided that the
<br />final maturity of the 2001 Notes shall be not more than one year from their date and the
<br />2001 Notes shall bear interest at an annual rate not in excess of 6%. The form of the
<br />2001 Notes attached to this resolution as Exhibit A is hereby approved, ratified and
<br />confirmed by the Council.
<br />
<br /> 4. Tax Covenant. The City covenants that it shall comply with the provisions of
<br />Sections 103 and 141-150 of the Internal Revenue Code of 1986, as amended, and the
<br />Treasury Regulations promulgated thereunder, applicable to the 2001 Notes,
<br />throughout the term of the 2001 Notes.
<br />
<br /> 5. Appointment of Reqistrar. The Chief Financial Officer shall serve as Registrar
<br />for the 2001 Notes.
<br />
<br /> 6. Execution of 2001 Notes. The City Manager is authorized and directed to
<br />execute and deliver the 2001 Notes to the purchaser thereof upon payment of the
<br />purchase price (or in exchange for the 2000 Notes) and the City Clerk is authorized and
<br />directed to affix the seal of the City thereto and to attest the same. The manner of
<br />execution and affixation of the seal may be by facsimile, provided, however, that if all of
<br />the signatures are by facsimile, the 2001 Notes shall not be valid until signed at the foot
<br />thereof by the manual signature of the Registrar.
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