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<br />(ii) to the Principal Accounl in the Bond fWld on cbe Business Day prior to each
<br />Bond Payment Date an amount equal to the principal thai is required to be
<br />deposited into the Principal Account in order to pay the principal due on the Bond
<br />on the next succeeding Bond Payment Date.
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<br />United States of America., maturing in such amounts and at such times as will insure the
<br />availabillty of suCftcient monies 10 make such payment
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<br />Seetloa 10 Geaenl OI>II..tlo.
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<br />SecdOD 7
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<br />Accounts Wlthl. Funds
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<br />laves.meat of Fuads
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<br />The Council, in accordance with Section 1 of Chapter II ofthc City Charter and Section
<br />15.2-2624 of the Act, is bereaJler authorized and required to levy and collect annually, at the
<br />same time and. in the same manner as other taxes of the City are asscssed.levicd and collected, a
<br />tax upon.n taxable property within the City, over and above all other taxes. authorized or
<br />limited by law and without llmitation as to rate or amoum. sufficient to pay when due the
<br />principal of and pmnium. if any and _ on the Note and the principal of and premium, if
<br />any and in_ on the Bond. to the extent other fimds of the City are not lawfUlly available and
<br />appropriated for such JlUIIlOSC-
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<br />Any fund or account created by this Ordinance may contain such accounts or subaccounts
<br />u may be necessary for the orderly administration thereof.
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<br />(i) The City shall separately inveat and moved any monieo beId in the fimds
<br />CItabIiabed by this Ordinance in inveslments which wou1d mature in amounts and at timeo so thai
<br />the principal of, pmnium, if any, and _ on, the Note can be paid when due at maturity
<br />thereof.
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<br />Seetloa 11 Eve.t of Default
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<br />(ii) Permissible investments include investments in securities that are legal
<br />investments under Chapter 45 ofTitle 2.2 of the Code ofViIginia of 1950, as amended (Section
<br />2.2-4500 ~.) and whicb are otherwise in compLiance with Section 15.2-2619 of the Act.
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<br />(a) AJ to the Note, each of the following shall constitute an event of default hereunder:
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<br />(i) Failure to pay the principal oftheNotewhendue~
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<br />Sedloa 9
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<br />Defeasance
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<br />(ii) Failure 10 pay interest on the Note when due;
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<br /><a> The obligations of the City under this Ordinance and covenants of the City
<br />provided for herein shall be fully discharged and satisfied as to the Note and the Note shall no
<br />longer be deemed to be Outstanding thereunder when the Note shall have been purchased by the
<br />City and canceled or destroyed, when the payment of principal of the Note, plus interest on such
<br />principal to the due date thereof either (a) shall have been made or (b) shall have been provided
<br />for by irrevocably depositing with a financial institution acting as escrow agent selected by the
<br />Paying Agent for the Note. money sufficient to make such payment, or direct and general
<br />obligations of, or obligations the principal of. and interest on. which are guaranteed by, the
<br />United States of America. maturing in such amounts and at such times as will insure the
<br />availability of sufficienl monies 10 make such payment.
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<br />(iii) Failure of the City to perform any other covenant or agreement contained in this
<br />Ordinance. which failure shall have continued for 60 days after the notice thereof from the
<br />Noteholder; provided, howcver, that if any such failure shall be such that it cannot be cured or
<br />corrected within a 6Q..day period but is, in fact, susceptible of cure or correction, it shall not
<br />constitute an Event of Default if curative or corrective action is instituted within said period and
<br />diligently pursued until the failure of performance is cured or corrected;
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<br />(iv) The instituting of any proceeding with the consent of the City for the purpose of
<br />effecting Nmposition between the City and its creditors or for the purpose of reducing the claims
<br />of creditors pursuant to any federal or state statute; or
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<br />(b) The obligations of the City under this Ordinance and covenants of the City
<br />provided for her<in shall be fully discharged and satisfied as to the Bond and the Bond shall no
<br />longer be deemed to be Outstanding thereunder wben the Bond shall bave been purcbased by the
<br />City and canceled or destroyed. when the paymenl of principal of the Bond, plus interest on such
<br />principal to the due date thercofeilher (a) shall have been made or (b) shall have been provided
<br />for by irrevocably depositing with a financial institution acting as escrow agent selected by the
<br />Paying Agent for the Bond, money sufficient to make such payment, or direct and general
<br />obligations of, or obligations the principal of, and interest on. which are guaranteed by, the
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<br />(v) If the City for any reason shall be rendered incapable of fulfilling its obLigations
<br />under this Ordinance as to the Note.
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<br />Upon the occurrence ofan Event of Default., the NOleholder may declare the prifl(;ipal .,t'
<br />all of the Outstanding Note and all accrued and unpaid interest thereon to be due and payable
<br />immediately. This provision is subject to the condition that if, at any time after such declaration
<br />and before any such fwther action has been taken, all arrears of interest on, and principal of, the
<br />Note shall have been paid and all other Events of Default, ifany, which shall have occurred 1,.),.('
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<br />been remedied, then the holders of such majority in principal amount of the Outstanding Note
<br />may waive such default and annul such declaration.
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<br />SectioD 12 En(orcemtnt bv Noteholdtr and Bondholder
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<br />In case an Event of Defaul1 shall occur, subject to the provisions referred to in the
<br />preceding paragraph, the Noteholder shall have the right to protect the rights vested in such
<br />Noteholder by the Ordinance by such appropriate judicial proceeding as such Noteholder shall
<br />determine either by suit in equity or by action at law.
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<br />The Noteholder .m~y ~y ~andamus or other appropriate proceeding at law or in equity in
<br />any coun of compet:enl Junsdlctlon, enforce and compel performance of this Ordinance and
<br />every p~ovision and co~enanl thereof concerning the Note, including without limiting the
<br />gene:ahty of the foregomg, the enforcement of the performance of all obligations and duties and
<br />reqUirements to be done or perfonned by the City by the Ordinance or by the applicable laws of
<br />the Co~onwea1th ~ to th.e ~ote. The Bondholder may by mandamus or other appropriate
<br />proceeding at law .or In ~ulty m any court of cornpet:enl jurisdiction, enforce and compel
<br />perfo~anc~ ofthl~ ~mance and every provision and covenant thereof concerning the Bond,
<br />Includ~ng :-Vlthout hml!mg the generality of the foregoing, the enforcement of the performance of
<br />all obhgatlo~ and duties and requirements to be done or penonned by the City by the Ordinance
<br />or by the applicable laws of the Commonwealth as to the Bond.
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<br />(b) As to the Bond, each of the following shall constitute an cvent of default hereunder:
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<br />(i) Failure to pay the principal of the Bond when due;
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<br />(ii) Failure to pay interest on the Bond wben due;
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<br />(iii) Failure of the City to perfonn any otber covenant or agreement contained in this
<br />Ordinance, which failure shall have continued for 60 days after the notice thereof
<br />from the Bondholder; provided, however, that if any such failure shall be such
<br />that il cannol be cured or corrected within a 6O-day period but is. in fact,
<br />susceptible of cure or correction, il shall not constitute an Event of Default if
<br />curative or corrective action is instituted within said period and diligently pursued
<br />until the failure ofperfonnance is cured or corrected;
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<br />. (vi) ~. instituting of any proceeding with the consent of the City for the purpose of
<br />errect~g composlhon between the City and its creditors or for the purpose of reducing the claims
<br />of credl10rs pursuant to any federal or state statute; or
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<br />(vii) Utile City for any reason shall be rendered incapable of fulfilling its obligations
<br />under this Ordinance as to the Bonet
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<br />SeclioD 13 Modification o(Notc aDd Bond Ordinaace
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<br />(a) ~e Cit~ may without the consent of the Noteholder make any modification or
<br />amendment of this Ordinance required to cure any ambiguity or error herein contained or to
<br />make any amendments hereto or to grant to the Noteholder additional rights. The Noteholder
<br />shall have th~ power to authorize any modificalions to this Ordinance proposed by the City other
<br />than.as pe.multed above~ provld~ th~t without the consent ofebe Noteholder affected thereby, no
<br />modificatIons shall be made :wh~ch Will (a) extend the time of payment of principal of, or interest
<br />on, the Nole or reduce the pnnclpal amount thereof or the rale of interest thereon; (b) give 10 the
<br />Note an~ preference over any other note or bond secured equ&lIy and ratably therewith;
<br />(c) depnve ~he Not~holder of the security afforded by lhis Ordinance, or (d) reduce the
<br />percenlage In pnnclpal amount of the Note required to authorize any modification to the
<br />Ordinance.
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<br />Upon the ~ of an Event of Default., the Bondholder may declare the principal of
<br />~1I of ~e ~mg Bond and all accrued and unpaid interest thereon to be due and payable
<br />Immediately. This provision is subject to the condition lhal if, at any time after such declaration
<br />and before any such further action has been taken, all arrears of interest on, and principal of, the
<br />Bond shall have been paid and all other Events of Default, if any, which shall have occurred
<br />have been remedied, then the Bondholder may waive such default and annul such declaration.
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<br />(b) The City may without the consent of the Bondholder make any modification or
<br />amendment of this Ordinance required to cure any ambiguity or error herein contained or to
<br />make any amendments hereto or to grant to the Bondholder additional rights. The Bondholder
<br />shall have th~ power 10 authorize any modifications to this Ordinance proposed by the Cily other
<br />than as ~rm~lIed above; provided that withoul the consent oflhe Bondholder affected thereby,
<br />no modifications shall be made which will (a) extend the time of payment of principal of, or
<br />Inter~t on, the Bond or reduce the principal amount thereof or the rate of interest thereon'
<br />(b) gJv~ to the Bo~ any preference over any otha' note or bond secured equally and ratab'ry
<br />therewith; (c) ~ve ~e Bondholder of the security afforded by this Ordinance, or (d) reduce
<br />the ~centage In pnoclpal amount of the Bond required to authorize any modification to the
<br />Ordmance.
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<br />.In case an Event of Defaull shall occur, subject to the provisions referred to in the
<br />preceding paragraph, the Bondholder shall have the rigblto protect the rigbts vested in such
<br />Bondholder by the Ordinance by such appropriate judicial proceeding as such Bondholder shall
<br />detennine either by suit in equity or by action at law.
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