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<br />April 14, 2009
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<br />Section 7 Accounts Within Funds
<br />Any fund or account created by this Ordinance may contain such accounts or sub accounts as may be necessary for the orderly
<br />administration thereof
<br />Section 8 Investment of Funds
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<br />(a) The City shall sepaniely invest and reinvest any monies held in the funds established by this Ordinance in investments which
<br />would mature in amounts and at times so that the principal of, premium, if any, and interest on, the Bond can be paid when due at maturity
<br />thereof
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<br />(b) Pemlissible investments include investments in securities that are legal investments under Chapter 45 of Title 21 of the Code
<br />of Virginia of 1950, as amended (Section 2.2-4500 et seg.) and which arc othcrwise in compliancc with Section 15.2-2619 of the Act.
<br />Section 9 Defeasance
<br />The obligations of the City under this Ordinance and covenants of the City
<br />provided for herein shall be fully disdlarged and satisfied as to the Bonds and the Bonds shall no longer be deemed tobe Outstanding thereunder
<br />when the Bonds shall have been purchased by the City and canceled or destroyed, when the payment of principal of the Bonds, plus interest on such
<br />principal to the due date thercof either (a) shall have been made or (b) shall have been provided for by irrevocably depositing with a financial
<br />institution acting as escrow agent selected by the Paying Agent for the Bmds, money sufficient to make such payment, or direct and general
<br />obligations of, or obligaions the principal of, and interest on, which are guaranteed by, the United States of Ameriea, maturing in such amounts and at
<br />such times as will insure the availability of sufticient monies to make such payment.
<br />Section IOGeneral Oblil!ation
<br />The Council, in accordance with Section 7 of Chapter II of the City Charter and Section 15.2-2624 of the Act, is hereafter authorized and
<br />required to levy and collect amually, at the same timc and in the same manner as othcr taxes of dle City are assessed, levied and collected, a tax upon
<br />all taxable property withil the City, over and above all other taxes, authorized or limited by law and without limitation as to rate or amount, sufficient
<br />to pay when due the principal of and premium, if any and interest on the Bonds, to the extent other funds of the City are not lawfully available and
<br />appropriated for such purpose.
<br />Section II Event of Default
<br />Each of the following shall constitute ,m event of default hereunder as to any partieular Bond:
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<br />(a) Failure to pay the principal of the Bond when due;
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<br />(b) Failure to pay interest on the Bond when due;
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<br />(c) Failure of the City to perform any oth:r covenant or agreement cortained in this
<br />Ordinance, whieh failure shall have continued for 60 days after the notice thereof from the Bondholder; provided, however, that if any such failure
<br />shall be such that it cannot be cured or corrected within a 60-day period but is, in fact, susceptible of cure or correction, it shall not constitute an Event
<br />of Default if curative or corrective action is instituted within said period and diligently pursued until the failure of perfomlance is cured or corrected;
<br />(d) The instituting of any proceedilg with the consent of the City for the purpose of
<br />effecting composition between the City and its creditors or for the purpose of reducing the claims of creditors pursuant to any federal or state staute;
<br />or
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<br />(e) lfthe City for any reason shall be remered incapable offultilling its obligations under this Ordinance as to the Bond.
<br />Upon the occurrence of an Event of Default, the Bondholder may declare tll.: principal of the Outstanding Bond and all accrued and unpaid
<br />interest thereon to be due and payable immediately This provision is subject to the condition that if, at any time after such declaration and before any
<br />such further action has been taken, all arrears of interest on, and principal of, the Bond shall have been paid and all other Events of Default, if any,
<br />which shall havc occurred have been remedied, dlen the Bondholder may waive such default and annul such declaration.
<br />In case an Event of Default shall occur, subject to the provisions referred to in the preceding paragraph, the Bondholder shall have the rigtJt
<br />to protect the rights vested in such Bondholder by the Ordinance by such appropriate judicial proceeding as such Bondholder shall detennine either by
<br />suit in equity or by actim at law. Enforcement bv BonciJolder
<br />The Bondholders may by mandllnus or other appropriate proceeding at law or in equity in any court of competent jurisdiction, enforce and
<br />compel performance of this Ordinance and every provision and covenant thereof concerning the Bonds, including without limiting the generality of
<br />the foregoing, the enforcement ofthe performance of all obligatims and duties and requirements to be done or performed by the City by the
<br />Ordinance or by the ",plicable laws ofthe Commonwealth as to the Bonds.
<br />Section 12 Modification of Bond Ordinance
<br />The City may withoutthe consent of the Bondholder make any modification or amendment of this Ordinance required to cure any
<br />anlbiguity or error herein contained or to make any anlendments hereto or to grant to the Bondholder additional rights. The Bondholder shall have the
<br />power to authorize any modifications to this Ordin,mee proposed by the City other than as permitted above: provided that without the consent of the
<br />Bondholder affected thereby, no modifications shall be made which will (a) extend the time of payment of principal of; or interest on, a Bond or
<br />reduce the principal anlOunt thereof or the rate of interest thereon: (b) give to a Bond any preference over any other bond secured equally and ratably
<br />therewith; (cl deprive the Bondholder of the security afforded by this Ordinance, or (d) reduce the pereentage in principal amOlUlt ofa Bond required
<br />to authorize any modification to the Ordinanee.
<br />Section 13 Avvlication of Proceeds; Sale of Bond
<br />Proceeds derived from the sale of the Bonds together with other monies available therefor shall be used to pay the eosts of issuance and
<br />other expenses of the City relating to the issuanee of the Bonds and therealler any remaining funds to be deposited in the Bond Proceeds Fund shall be
<br />used for the purposes specified in Section 2 of this OrdimUlce and otherwise used in aeeordance with the provisions of this Ordinance or an opinion of
<br />Bond CounseL Interest accruing on the principal of the Proceeds Fund and any profit realized from it may be transferred to the Bond Fund to be
<br />applied to the payment of interest on the Project Bond during the aequisition, construction, improvement and equipping of the Project.
<br />Section 14 No Arbitral!e Covenant and Covenants and Desil!nations as to the Code
<br />The City hereby cO\enants that it will not use or invest, or permit the use or investment of any proceeds of the Bonds in a manner that
<br />would cause fue Bonds to be subjected to treatment under Section 148 of the Code and the regulations adopted thereunder as an "arbitrage bond," and
<br />to that end the City shall comply with applicable regulations adopted under said Section 148 of the Code.
<br />The City covenants to comply with dle Code provisions requiring that any issuance of "governmental bords," as detined therein, be subject
<br />to certain requirements as to rebate and timing and type of payments to be paid for from the proceeds of such bonds, as well as other additional
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