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May 27~ 1980
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<br />both principal and interest, the interest thereon payable prior to maturity shall be payable
<br />at the principal office of Virginia National Bank, in Norfolk, Virginia, or, at the option
<br />of the holder of such Bond, at the principal office of The Chase Manhattan Bank (National
<br />Association), in the City of New York, New York, as the paying agents for the Bonds. The
<br />interest on any Bond while registered as to both principal and interest shall be payable by
<br />the City by check or draft mailed to the registered owner at such owner's address as shown
<br />on the books of registry. The principal of and premium, if any, on the Bends are payable at
<br />the principal office of either of said paying agents for the Bonds.
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<br /> 3. The full £aith and credit of th~ City shall be and hereby is irrevocably pledged to
<br />the payment of the principal of and interest on the Bonds as the same become due. In each ye:
<br />while the Bonds, er any of them, are outstanding and unpaid, there shall be assessed, levied
<br />and collected, at the same time and in the same manner as other taxes in the City are assesse~
<br />levied and collected, upon all property within the City subject to taxation by the City, a
<br />tax sufficient to pr.ovide for the payment of the principal of and interest on the Bonds as
<br />the same become due, if the revenues of the aforesaid undertaking consisting of the water and
<br />sewerage system are insufficient to meet the obligations herein set forth.
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<br /> 4. The Bonds shall not be included in determining the limitation upon the power of the
<br />City to incur indeb'tedness under the provisions of Article VII, Section 10, of the Constituti,
<br />of Virginia, but from and after November 4, 1980, whenever and for so long as the City's wate~
<br />and sewerage system fails to produce sufficient revenue to pay the cost Of operation and ad-
<br />ministration (including interest on bonds issued therefor, and the cost of insurance against
<br />loss or injuries to persons and property), and an annual amount to be placed into a sinking
<br />fund sufficient to pay at or before maturity all bonds issued on account of said system, all
<br />such bonds outstanding shall be included in determining the limitation upon the power of the
<br />City to incur indebtedness.
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<br /> 5. The City shall make no use of the proceeds of the sale of the Bonds which would cau
<br />the Bonds to be "industrial development bonds" or "arbitrage bonds" under Section 103 of the
<br />U. S. Internal Revenue Code of 1954, as amended, and the City shall .comply with the applicabl
<br />regulations of the Internal Revenue Service adopted under said Section 103 so long as any Bom
<br />is outstanding.
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<br /> 6. The Bonds shall be sold in conjunction with the sale of the $-,000,000 General
<br />Obligation Public Improvement Bonds of the City authorized'by this Council at the meeting at
<br />which this resolution is adopted. The notice of sale of the Bonds referred to in Section
<br />10 hereof and the legal notice referred to in Section 11 hereof shall each contain provisions
<br />suitably recognizing and providing with respect to the foregoing.
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<br /> 7. The Bonds shall be executed, for and on behalf of the City, by the manual or facsim
<br />signatures of the Mayor and Director of Finance of the City, and the corporate seal of the
<br />Ci~ shall be impressed or a facsimile thereof imprinted on the Bonds and attested by the
<br />manual or facsimile signature of the City Clerk of the City; provided, however, that at
<br />least one of such s~gnatures on the Bonds shall be a manual signature. The Bonds, except
<br />when registered as to both principal and interest, shall have coupons attached thereto re-
<br />presenting the interest on the Bonds, which coupons shall be executed by the facsimile sign-
<br />ature of the said Director of Finance.
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<br /> 8. CUSIP identification numbers may be printed on the Bonds, but neither the failure t
<br />print any such number on an)- Bond nor any error or omission with respect thereto shall con-
<br />stitute cause for failure or refusal by the successful bidder fo~ the Bonds to accept deliver
<br />of and pay for the Bonds i~n accerdance with the terms of its bid. No such number shall con-
<br />stitute or be deemed to be a part of any Bond or a part of the contract evidenced thereby and
<br />no liability shall attach to the City of any of its officers or agents because of or on accour
<br />of any such number or any use made thereof. Ail expenses in relation to the printing of such
<br />numbers on the Bonds shall be paid by the City; provided, however, that the CUSIP Service
<br />Bureau charge for the assignment of such numbers shall be the responsibility of and shall be
<br />paid for by the successful bidder for the Bonds.
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<br /> A copy of the complete final legal opinion with respect to the Bonds, with the name of ti
<br />attorney or attorneys rendering same, together with a certification of the City Clerk, execute
<br />by a facsimile signature of that officer, to the effect that such copy is a true and correct
<br />copy of the legal opinion which was dated as of the date of delivery of and payment for the
<br />Bonds, may be printed on the Bonds.
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<br /> 9. The Bonds, the coupons pertaining to the Bonds and the provisions for registration
<br />to be endorsed on the Bonds shall be in substantially the following forms, respectively, to-
<br />wit:
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<br />(Form of Bond)
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<br />UNITED STAT~S OF AMERICA
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<br />COMMONWEALTH OF VIRGINIA
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<br />CITY OF PORTSMOUTH
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<br />GENERAl OBLIGATION PUBLIC UTILITY BOND
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<br />No. $5,000
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