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<br />(b) There is hereby authorized to be issued a general obligation Bond ofthC( Cily in
<br />the aggregate principal unounl of up to $2,500,000 for municipal purposes as described in
<br />Section 2 (b) above. The Bond authorized herein shall be designated "General Obligation Bond
<br />(Landfill Project), Series 2005, ~ shall be issuable as a fully registered Bond, without coupons.,
<br />shan be dated the Closing Date, shall be numbered R-l, shall bear interest payable on the Bond
<br />Paymenl Dates at . rate of 3.42% per annum on the First Bond Advance (defined in Ihe
<br />Financing Agreement) and at the rate or rates per annum calculated as follows on each
<br />Subsequent Bond Advance (defined in !be Financing AgJCCIJlent): gS% of the avenge yield of a
<br />10 year U.S. Trasury Certificate, calculoled as of the day bef_ the Suboequent Bond Advance
<br />i. made. The Bond shall mature oa the Bond Mllurity Date. Commencing on January IS. 2006.
<br />and continuing on each July IS and JOllUI1)' IS therafte<, in_ on principal UDOunls
<br />advanced under the Bond shall be doe and payable as set forth above, and commencing on
<br />January 15,2006, and continuing on each July IS and IIDuary IS _cr, principal arnounls
<br />advanced under the Bond shall be due in an amount such thai the principal balance of !be First
<br />Bond Advance is amortized so that pa)1nel1tS of principal and interest on the First Bond Advance
<br />are payable on an approximately level debt service basis until the Bond Maturity Date and lhe
<br />principal balance of any Subsequent Bond Advance is amortized so that payments of principal
<br />and interest on each such Subsequent Bond Advance are payable on an approximately level debt
<br />service basis until the Bond Maturity Date, provided, however, that ifprincipal advances up to
<br />the maximum amount authorized amount are not made, the principal amount due on the Bond
<br />shall not include such undisbursed amount. The Bond is subject to redemption prior to maturity
<br />at the option of the Council at any lime, in whole or in part, at a redemption price equal to 100%
<br />of the principal amount of the Bond to be redeemed, plus interest accrued to the redemption date.
<br />
<br />I~ any principal of, or in~erest on, the Bond is DOl paid when due (whether at maturity, by
<br />acc.eleral~on or call for redemption, or otherwise), then, to the extcnl penniUcd by law, the
<br />~ven:lue mstallments of principal shall bear interest until paid althe same rate or rates as set fOr1h
<br />m the Bond.
<br />
<br />The Bond shall be signed by the facsimile or manual signalurc of the Mayor. The
<br />facsimile of the City's seal shall be printed thereon or manually impressed thereon and anested
<br />by Ihe facsimile or manual signature of the Clerk. In case any officer whose signalure or
<br />facsimile of whose signature shall appear on the Bond shall cease to be such officer before
<br />delivery oft.be Bond. such signature or facsimile shall nevertheless be valid and sufficient for all
<br />pu~, ~ same as iChe remai~ in office until such delivery. The Bond may bear the
<br />facsimile Signature of or may be Signed by such persons II at the actual time o(thc execution
<br />thereof shall be the proper nfflCCl> \0 sign the Bond aIthougb on the date of delivery of the Bond
<br />such persons may not have been such officers.
<br />
<br />The Bond shall bear a certiHcaleofauthcntication, in the fonn set forth below, duly
<br />ex.ecuted by the Registrar. The Registrar shall authenticate the Bond with the signature of an
<br />authorized officer oCthe Registrar. Only the authenticated Bond shall be entilled to any right or
<br />benefit under lhis Ordinance, and such certificate on the Bond issued hereunder shall be
<br />conclusive evidence that the Bond has been duly issued and is secured by the provisions hereof.
<br />
<br />Principal oC, and interest on. the Bond shall be payable in lawful money of the United
<br />Statcs of America. Principal of and interest on the Bond shaH be payable by check or draft
<br />mailed to the registered owner thereof at its address.
<br />
<br />The Paying Agent shall act as Regislrar and shall maintain RegIstration Books for the
<br />registration and lhe registration of transfer of the Bond. The Cily Treasurer is hereby designated
<br />and authorized to act as Paying Agent and Registrar hereunder. The transfer of the Bond may be
<br />regislered only on the books kept for the registration and registration of transfer oflhe Bond
<br />upon surrender thercofto the Registrar together wilh an assignment duly executed by the
<br />regislered Bondholder in person or by his duly authorized attomey or legal represenlat' ; n such
<br />fonn as shall be satisfactory to the Registrar. Upon any such transfer, the City shall ex- lIld
<br />the Registrar shall authenticate and deliver, in exchange of the Bond. a new registered Hond
<br />registered in the name of the transferee of the same series. maturity and interest rate as the Bond
<br />50 exchanged in any denomination or denominations authorized by this Ordinance.
<br />
<br />The Bond is hereby authorized to be issued under the City Charter and the Act. The
<br />Bond shall bear interest from lhe date on which it is authenticated. Interest on the Bond shall be
<br />computed on the basis of 30-day months and a 36O-day year.
<br />
<br />The Bond shall be printed, lithographed or typewritten and shall be substantially in the
<br />fonn herein below set forth, with such appropriate variations, omissions and insertions as are
<br />permitted or required by this Ordinance, including such variations. insertions and omissions as
<br />shall be necessary to issue the Bond under a system of book. entry for recording the ownership
<br />and transfer of ownership of rights to receive payments of principal of and jnlerest on the Bond
<br />and may have endorsed thereon such legends or text as may be necessary or appropriate to
<br />conform. to any applicable rules and regulations 0 f any governmental authority or any usage or
<br />requirement of law with respect thereto.
<br />
<br />The Registrar shall not be required to make any such registration or registration of
<br />transfer during the thit1y (30) days immediately precc:ding any Bond Paymenl Date or a
<br />redemption date.
<br />
<br />Prior 10 due presentment for regislrat~n of tranSfer for the Bond, the Registrar :";1<1" ~at
<br />the registered Bondholder as the person exclusively entitled to payment of principal of, premium,
<br />if any, and interest on, the Bond and the exercise of all other rights and powers of the
<br />Bondholder.
<br />
<br />12
<br />
<br />13
<br />
<br />If the Bond has been mutilated, lost or destroyed. the City shall execute and the Registrar
<br />shall authenticate and deliver a new Bond of like date and tenor in exchange or substitution for,
<br />and upon cancellation of, such mutilated Bond or in lieu of and in substitution for such los1 or
<br />destroyed Bond; provided. however, that the City and the Regislrar shall execute, authenticate
<br />and deliver such Bond only if the Bondholder has paid the reasonable expenses and charges or
<br />the City and the Registrar in connection therewith and, in the case of a lost or destroyed Bond,
<br />has furnished to the City and the Registrar (a) evidence satisfactory to them that such Bond was
<br />lost or destroyed and the Bondholder was the Owner thereof and (b) indemnity satisfactory to
<br />them. If the Bond has matured, instead of issuing a new Bond, the Registrar may pay lhe same
<br />without surrender thereof upon receipt of the aforesaid evidence and indemnity.
<br />
<br />$1,500,000
<br />
<br />The Bond, the Certificate of Authentication and the provision for the assignment to be
<br />inserted in the Bond shall be substantially in the following form, to.-wit:
<br />
<br />. KNOW ALL MEN BY THESE PRESENTS, that the City of Martinsville, Virginia
<br />(herelDafru ~omdimes referr~ 10 as tbc "City"), a City of the Commonwealth of Virginia,
<br />for ~alue received hereby p,:>mlscs to p.ay to the registered holder (named above), or assigns.
<br />subJ~t ~o prepayment or pnor redemption as hereinafter provided, the sum equal to the amount
<br />of pnnclpal advances made hereunder but not to exceed the maximum principal sum specified
<br />above, and to pay interest on the principal amount disbursed under the Firsl Bond Advance
<br />(defined i~ the Financing Agreement) allhe rate of 3.42% per annum and on the principal
<br />amount disbursed under each Subsequent Bond Advance (defined in the Financing Agreement)
<br />calculated as follows: 850/. of the average yield of a 10 year U.S. Treasury Certificate,
<br />calculated as of the day before the Subsequent Bond Advance is made; such payments shall be
<br />made on the disbursed and unpaid principal balance from Ute date of each disbursement until
<br />payment oflhe entire disbursed principal sum, from the date of authentication hereof, as follows:
<br />
<br />Commencing on.J~uary 15, 2006, and continuing on each July 15 and January IS
<br />thereafter, interest on pnnc.lpal amounts advanced under the Bond shall be due and payable as set
<br />forth above, and. co~encmg on January IS, 2006, and continuing on each July IS and January
<br />15 thereafter, pnnclpal amounts advanced under the Bond shall be due in an amount such that
<br />the principal balance of the First Bond Advance is amortized so that payments of principal and
<br />mterest ~ ~yable on an approximately level debt service basis until the Bond Maturity Dale
<br />and the pnn(:1~1 bal~e o~ any Subsequent Bond Advance is amortized on an approximately
<br />level debt service basiS until the Bond Maturity Date, provided, however, that if principal
<br />adv~es up to the m~imum amount authorized amount are not made, lhe principal amount due
<br />on thiS Bond shall not Include such undisbursed amount.
<br />
<br />If the Bond has been paid (whether at maturity, by accc:leration or otherwise) or delivered
<br />to the Paying Agent for cancellation, the Bond shall not be reissued and the Registrar shall,
<br />unless otherwise directed by the City, cremale, shrtd or othezwise dispose oflhe Bond. The
<br />Registrar shall deliver to the City a certificate of any such cremation. shredding or other
<br />disposition of lhe Bond.
<br />
<br />CUSIP identification numbers may be printed on the Bond, but such numbers shall not be
<br />deemed to be a part of the Bond or a part of the contract evidenced thereby and no liability shall
<br />hereafter attach to the City or any of the officers or agents thereof because or on account of said
<br />CUSIP numbers.
<br />
<br />"FORM OF BOND"
<br />
<br />Both principal ofand interest on this Bond are payable in any coin or currency of the
<br />United States of America which at the time of payment is legal tender for public and private
<br />debls.
<br />
<br />Nn.R-I
<br />
<br />UNITED STATES OF AMERICA
<br />COMMONWEALTH OF VIRGINIA, CITY OF MARTINSVILLE
<br />
<br />GENERAL OBLIGATION BOND
<br />SERIES 2005
<br />
<br />It is hereby ce:rtiflOd, recited and declared thal all acts, conditions and things required to
<br />have happened. to exist and to have been perfonned precedent to and in the issuance of this Bond
<br />do exist, have happened and have been perfonned in regular and due time, form and manner as
<br />required by law; that this Bond does nol exceed any constitutional, statutory or charter limitation
<br />of indebtedn~; and thai provision has been made for the paymenl of the principal of, and
<br />mterest on, this Bond as provided in the Ordinance.
<br />
<br />Re&lslered Holder.
<br />PATRICK HENRY NATIONAL BANK
<br />
<br />Mlturity Date: July IS. 2015
<br />
<br />No registration, transfer or exchange of this Bond shall be permitted within thirty (30)
<br />days of the Maturity Date or lhe date ofprepaymenl or redemption of this Bond.
<br />
<br />This Bond is in the amounl of principal advances made hereunder, not to exceed the
<br />a~egale princ:ip~ amount of$2,500,OOO, and is issued under and pursuant to and in compliance
<br />With the Constltu1Jon and laws of the ConunonweaJth of Virginia. including the City Charter of
<br />
<br />Dacrd: _-,100s
<br />
<br />Maximum PriDdpal Sum:
<br />
<br />t4
<br />
<br />IS
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