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367
<br />
<br />January 2~, 1980
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<br />at the principal office of The Chase Manhattan Bank (National Association), in the City of
<br />New York, New York, except that interest on any Bond while registered as to both principal
<br />and interest shall be paid by the City.
<br />
<br /> The Bonds of each issue maturing on and after March 1, 1991, shall be subject to redemp-
<br />tion at the option of the City prior to their stated maturities on or after March 1, 1990,
<br />in 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 of such issue
<br />are called for redemption, the particular Bonds of such maturity of such issue to be redeemed
<br />shall be selected by lot~, upon payment of the principal amount of the Bonds to be redeemed
<br />together with the interest accrued thereon to the date fixed for redemption plus a premium of
<br />one-quarter of one percent (1/4 of 1%) of the principal amount of each Bond to be redeemed fo~
<br />each twelve (12) month period or fraction thereof between the date fixed for redemption and
<br />the stated maturity date of such Bond.
<br />
<br /> The Public Improvement Bonds are to be issued for the purpose of providing funds to pay
<br />the cost of various public improvement projects. The full faith and credit of the City shall
<br />be pledged to the payment of the principal of and interest on such Bonds as the same become
<br />due. For the payment of such principal and interest, the City has power and will be obligate~
<br />to levy ad valorem taxes without limitation of rate or amount upon all property within the
<br />City subject to taxation by the City.
<br />
<br /> The Public Utility Bonds are to be issued for the purpose of providing funds to pay the
<br />cost of capital improvements, extensions and additions to the City's revenue-producing water
<br />and sewerage system. The full faith and credit of the City ~hall be pledged to the principal
<br />of and interest on such Bonds as the same become due. For the payment of such principal and
<br />interest, the City has power and will be obligated to levy ad valorem taxes without limitatio
<br />of rate or amount, upon all property within the City subject to taxation by the City, if
<br />the revenues of the undertaking consisting of the water and sewerage system of the City are
<br />insufficient for that purpose.
<br />
<br /> BiRders shall specify the rate or rates of interest per annum to be borne by the Bonds,
<br />to be expressed in multiples of one-eighth or one-twentieth of one percent. Bidders shall
<br />not be restricted as to the number of rates which may be named but the difference between the
<br />highest and the lowest interest rates specified shall not exceed two percent in coupon rate.
<br />All Bbnds of both issues maturing on the same date must bear interest at the same single rate
<br />from their date to such maturity date, which single rate of interest shall be represented
<br />by a single coupon. Unless all proposals are rejected the Bonds will be awarded on February
<br />28, %980 to the responsible bidder offering to purchase the bonds at the lowest cost to the
<br />City, to be computed by determining the interest to maturity at the rate or rates specified b}
<br />the bidder and deducting therefrom any premium offered. No bid will be considered for less
<br />than all of the Bonds of both issues, or for a price less than par and accrued interest from
<br />the date of the Bonds to the date of their delivery. The right is reserved to reject any and
<br />all bids or to waive any irregularities or informalities in any bid.
<br />
<br /> Proposals must be unconditional, must be on the City's proposal form prepared for the
<br />purpose, must be submitted in sealed envelopes marked "Proposal for City of Portsmouth, Vir-
<br />ginia, Bonds" addressed to the undersigned and must be g~comoanied by a certified or bank
<br />cashier's check in the amount of $240,000 payable to the ~ordSr of the City of Portsmouth,
<br />Virginia, as a guarantee of good faith on the part of the bidder. No interest will be paid b}
<br />the City on said good faith deposit. Good faith checks of unsuccessful bidders will be prompt]
<br />returned to the representatives thereof. The good faith check of the successful bidder will
<br />be deposited by the City and the proceeds thereof credited against the purchase price due for
<br />the Bonds upon their delivery or retained as and for liquidated damages in the event the sucs~
<br />cessful bidder fails to take up and pay for the Bonds in accordance with its bid.
<br />
<br /> The Bonds will be printed at the expense of the City. Delivery of the Bonds, properly
<br />executed, and the usual closing papers, including a certificate that no litigation is pending
<br />affecting the validity of the Bonds, will be made to the successful bidder in New York, New
<br />York, on March 13, 1980, or as soon thereafter as the Bonds may be prepared. Payment of the
<br />balance of the purchase price, including of any premium offered, must be made in Federal Funds
<br />
<br /> It is anticipated that CUSIP identification numbers will be printed on the Bonds, but
<br />neither the failure to print any such number on any Bond nor any error or omission with respe¢
<br />thereto shall constitute cause for faiIure or refusal by the successful bidder for the Bonds
<br />to accept delivery of and pay for the Bonds in accordance with the terms of its proposal. No
<br />CUSIP identification number shall constitute or be deemed to be a part of any Bond or a part
<br />of the contract evidenced thereby and no liability shall attach to the City or any of its
<br />officers or agents because of or on account Of any such number or any use made thereof. All
<br />expenses in relation to the printing of CUSIP identification numbers on the Bonds shall be
<br />paid for by the City; provided, however, that the CUSIP Service Bureau charge for the assign-
<br />ment of said numbers shall be the responsibility of and s!hall be paid by the successful bidde~
<br />for the Bonds.
<br />
<br /> The respective opinion of Messrs. Wood ~ Dawson approving the validity of each issue of
<br />Bonds will be furnished the successful bidder for the Bonds. Each such opinion will state the
<br />the respective Bonds constitute valid and legally binding obligations of the City and that the
<br />City has power and is obligated to levy ad valorem taxes for the payment of such Bonds and
<br />the interest thereon upon all property within the City, s.ubject to taxation by the City, withe
<br />limitation of rate or amount, it being understood that the rights of the holders of such Bonds
<br />and the enforceability thereof may be subject to judicial discretion, to the valid exercise
<br />of the sovereign police powers of the Commonwealth of Vir:ginia and the Constitutional powers
<br />of the United States of America, and ~o valid bankruptcy~ insolvency, reorganization, morato--
<br />rium and other laws for the relief of debtors, and will also state that the interest on such
<br />Bonds is exempt from taxation by the United States of Ame~rica under existing law and regulatio
<br />under the existing law of the Commonwealth of Virginia such interest is not includable in
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