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<br />Be i( Ordained by (he City Council of (he City of Mminsville, Virginia'
<br />
<br />Stctio. I
<br />
<br />Definilions
<br />
<br />Unless thc contcxt shall clearly indicale someolher meaning. the following words and
<br />tenns shall for all purposes of the Ordinance and of any certificate, resolution or other instrument
<br />amendatory Ihereof or supplementallhereto for all purposes of any opinion or instrument or
<br />other documents therein or herein mentioned, have the following meanings
<br />
<br />"Act" shall mean the Public Finance Act. Chapter 26, Title 15.2 of the Code of Virginia
<br />of 1950. as amended
<br />
<br />CITY OF MARTINSVILLE, VIRGINIA
<br />
<br />"Bank" shall mean Patrick Henry Nalional Bank, Bassett, Virginia.
<br />
<br />AN ORDINANCE AlTfHORIZING THE ISSUANCE OF UP TO $2,500,000 MAXIMUM
<br />PRINCIPAL AMOUNT OF GENERAL OBLIGATION NOTES OF THE CITY OF
<br />MARTINSVILLE, VIRGINIA FOR PURPOSES OF ASSISTING IN THE
<br />ACQUISITION, CONSTRUcnON AND f.;QUlPPING OF SCHOOL CONSTRUCTION
<br />PROJECTS AND UP TO $2,500,000 MAXIMUM PRINCIPAL AMOUNT OF GENERAL
<br />OBLIGATION BONDS OF THE CITY OF MARTINSVILLE, VIRGINIA FOR TilE
<br />PURPOSES OF ASSISTING IN THE ACQUISITION, CONSTRUCTION AND
<br />EQUIPPING OF LANDFILL CONSTRUcnON PROJECTS AND PROVIDING FOR
<br />TilE FORM, DETAILS AND PAYMENT THEREOF
<br />
<br />"Doad" shall mean the City's General Obligation Bond, Series 2005, in the aggregate
<br />principal amount of up to $2,500,000, aulhorized to be issued hereunder.
<br />
<br />"Bondbolder" shall mean the registered holder of the Bond.
<br />
<br />"Bond Counn." shall mean Sands, Anderson, Marks & Miller. a Professional
<br />Corporation or another attorney or firm of attorneys nationally recognized on the subject of
<br />municipal bonds selecled by the Cily.
<br />
<br />"Bond Fund" shall mean the Bond Fund established by Section 6
<br />
<br />"Bond Malurity Date" shall mean July 15,2015.
<br />
<br />"Bond Payment Date" shall mean the 15lh day of each January and July, h,. oS
<br />January 15, 2006, up to the Bond Maturity Date
<br />
<br />"Boad Proce-eds FUDd" shall mean the Bond Proceeds Fund established by Section 4.
<br />
<br />"BusintSs Da),II shall mean any Monday, Tuesday, Wednesday, Thursday or I'r,
<br />which commercial banks generally are open for business in the CommonwealLh of Virgin.
<br />
<br />"City" shall mean the City of Maninsville, Virginia.
<br />
<br />"City Cbarter" shall mean the City Charter of the City of Martinsvi lIe, Virgima, as
<br />amended.
<br />
<br />Adopted 00 Jul)' 12, Z005
<br />
<br />VIRGINIA , "10 Circuit Court
<br />In Ci'X of Martlnsv.
<br />Clerk s ~...:. "'" arC Flied ... !he
<br />R,"",,- (}5
<br />/S" O&f 01 JUM .<E-
<br />aI ,/}..54 ~IA
<br />Tes\o:..L) l'J\lO:j e~ Clorl<
<br />
<br />"Clerk" shall mean the Clerk of the Councilor the Deputy Clerk of the Council.
<br />
<br />"Closing Date" shall mean the dale on whICh {he Note is Issued and delivered to lhe
<br />Noteholder and the Bond is issued and delivered 10 the Bondholder.
<br />
<br />(iii) the Note or the Bond, as applicable, in lieu of, or in substitution for which
<br />anolher Note or the Bond, as applicable, shall have been authenticated and'
<br />delivered pursuant to this Ordinance; and
<br />
<br />"Code" shall mean (he Internal Revenue Code of 1986, as amended, and appliC:lblc
<br />regulations, procedures and rulings thereunder
<br />
<br />"Commonwultb" shall mean the Commonweallh of Virginia
<br />
<br />(iv) If the Note or the Bond, as applicable is deemed paid under the provisions
<br />of Section 9, excepllhat such Note or the Bond, as applicable, shall be
<br />considered Outstanding until the malurity or redemption date (hereof only
<br />for the purposes of 3Clually being paid
<br />
<br />"Council" shall mean the City Council of the City of Martinsvillc.
<br />
<br />"Inlerest Account" shall mean the lnleresl Account in the Nole Fund established bv
<br />Section 6 or the Interesl Account in the Bond Fund established by Section 6, as the context -
<br />requires.
<br />
<br />"Paying Agenl" shall mean the Cily Treasurer acting as Paying Agent for the Note and
<br />the Bond hereunder or (he successors or assigns serving as such hereunder.
<br />
<br />"Mayor" shall mean the Mayor or Vice Mayor of the Council.
<br />
<br />. "Principal. Account" shall mean the Principal Account in Ihe Note Fund established by
<br />Section 6 or the Pnoclpal Account in the Bond Fund established by Section 6, as (he conlext
<br />reqUIres
<br />
<br />"NOle" shall mean the City's General Obligation Note, Series 2005, In the aggregate
<br />principal amount of up 10 $2,500,000 aUlhonzed to be issued hereunder.
<br />
<br />"Notebolder" shall mean the registered owner of the Nole
<br />
<br />"Registrar" shall mean the Payjng Agent, or the Successors or assigns serving as such
<br />hereunder
<br />
<br />"Note Fund" shall mean the Note Fund established by Section 6.
<br />
<br />Seclion 2
<br />
<br />FindioE!5 and Determinations
<br />
<br />{l) if the Note or the Bond, as applicable, is canceled by the City al or before
<br />such date;
<br />
<br />(a) The Council hereby finds and detemlines thaI (i) the City is in need of funds to be
<br />used by the City for purposes of the acquisition, construction and equipping of renovations,
<br />additions and improvements to classrooms and other spaces at Patrick Hmry Elementary School
<br />located in the City (tbe "'Scbool Project"), for costs of issuance of the Note and for the payment
<br />ofmterest on the Note, (ii) the oblaining of such funds will be for municipal purposes of the City
<br />for the welfare ofci(izens of the City for purposes which will serve the City and its citizens
<br />pursuant to the authority of the City to provide funds for and otherwise support the City's pubhc
<br />schools and serve the City's municipal pwposes, (iii) the most effective, efficient and expedient
<br />manner in which to provide such funds is by general obligation notes in the maximum principal
<br />amount ofS2,500,OOO issued by the City as further described herein (tbe "Note") to be sold 10
<br />the Bank, which has offered to purchase the same on certain terms and conditions pursuant to the
<br />Bank's proposal, a Bond and Note Purchase Agreement between the City Council and the Bank
<br />dated as of July 15, 2005 (tbe "Bond aDd Note Purchase Agreement") and a Financing
<br />Agreement between the Cily and the Bank dated as of July 15,2005 (tbe "Financing
<br />Agr~meol"), the fonns of which have been presented to Ihe Cily Council, Ihe issuance of such
<br />N~te being within the power of the City to contract debts, borrow money and make and issue
<br />~vldence ofindebledness and (iv) the issuance of the No(e is in the best interests of the City and
<br />Its citizens. The Council hereby finds and determines that the probable useful life of the School
<br />ProJ~l. and any and all ponions of the School Project, exceeds twenty-five years and thai the
<br />NOle IS payable and shall mature within the probable useful life of the School Project and the
<br />probable useful life of any and all portions of the School Project (whether considered atone or as
<br />
<br />"Note Maturily Date" shall mean January IS, 2009.
<br />
<br />"Note PaymcDt Date" shall mean the 15th day of each January and July, beginning
<br />January J 5,2006, up to the Nore Maturity Dale
<br />
<br />"Note PrOC:ee(is Fuod" shall mean the Nole Proceeds Fund established by Section 4
<br />
<br />"Outstaadiag" when used in reference to the Note or the Bond, as applicable, shall
<br />mean, as of a panicular dale, (he Note or the Bond, as applicable, authenticated and delivered
<br />under lhis Ordinance except.
<br />
<br />(ii) the Note or the Bond, as applicable, for the redemption or pwchase of
<br />which cash or noncaJlable direct obligations of the United Slates of
<br />America, equal 10 the redemption or purchase price thereof to lhe
<br />redemption or purchase date. shall have been deposited with the Paying
<br />Agent, for which notice of redemplion or purchase shall have been given
<br />In accordance with the Ordinance;
<br />
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