Minutes 04/28/1998 - Laserfiche WebLink

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regulations, procedures and rulings thereunder. ' "Commonwealth" shall mean the Commonwealth of Virginia. "Council" shall mean the City Council of the City of Martinsville. "Interest Account" shall mean the Interest Account in the Note Fund established by Section 6. "Maturity Date" shall mean April 29, 2000. "Mayor" shall mean the Mayor or Vice Mayor of the Council. "Outstanding" when used in reference to the Note shall mean, as of a particular date, the Note authenticated and delivered under this Ordinance except: (i) if the Note is canceled by the City at or before such date; (ii) if cash equal to the principal amount of the Note, with interest to the date of maturity, shall have been deposited with the Paying Agent prior to maturity; (iii) the Note for the redemption or purchase of which cash or noncallable direct obligations of the United States of America, equal to the redemption Or purchase price thereof to the redemption or purchase date, shall have been deposited with the Paying Agent, for which notice of redemption or purchase shall have been given in accordance with the Ordinance; (iv) the Note in lieu of, or in substitution for which, another Note shall have been authenticated and delivered pursuant to this Ordinance; and (v) if the Note is deemed paid under the provisions of Section 9, except that such Note shall ha considered Outstanding until the maturity or redemption date thereof only for the purposes of actually being paid. "Paying Agent" shall mean the City Treasurer acting as Paying Agent hereunder as designated and authorized under Section 3 or the successors or assigns serving as such hereunder. "Payment Date" shall mean each July 1, October 1, January I and April 1 while any portion of the principal amount of the Note is Outstanding. "Principal Account" shall mean the Principal Account in the Note Fund established by Section 6. "Proceeds Fund" shall mean the Proceeds Fund established by Section 4. "Registrar" shall mean the Paying Agent, or the successors or assigns serving as such hereunder. Section 2 - Findings and Determinations The Council hereby finds and determines that (i) the City is in need of funds to be used by the City for purposes of making a grant or grants of funds to the Authority to assist in the acquisition, construction and equipping of certain redevelopment projects and for purposes of the acquisition, construction and equipping of additions and renovations to City of Martinsville public property for needs brought to the attention of the Council by the Martinsville City Manager which include the demolition of buildings and associated expenses for redevelopment purposes by the Authority, the acquisition, construction and equipping by the Authority of redevelopment projects in the City of Martinsville (including projects known as the Basseli and Toltex projects) and the acquisition, censtruction and equipping by the City of additions and renovations to City of Martinsville public property (together, the "Project"), for costs of issuance of the Note and for the payment of interest on the Note, (ii) the obtaining of such funds will be for municipal purposes of the City for the welfare of citizens of the City for purposes which will serve the City and its citizens pursuant to the authority of the City to provide funds for activities of the City and the Authority and otherwise support the City's municipal purposes, (iii) the most effective, efficient and expedient manner in which to provide such funds is by a general obligation note in the maximum principal amount of $2,000,000 issued by the City as further described herein (the "Note") to be sold to Patrick Hertry National Bank, which has offered to purchase the same on certain terms and conditions pursuant to a Note Purchase Agreement between the City Council and Patrick Henry National Bank (the "Note Purchase Agreement") the form of which has been presented to the City Council, the issuance of such Note being within the power of the City to contract debts, borrow money and make and issue evidence of indebtedness and (iv) the issuance of the Note is in the best interests of the City and its citizens. The Council hereby finds and determines that the probable useful life of the Project, and any and all portions of the Project, exceeds two years and that the Note is payable and shall mature within the probable useful life of the Project and the probable useful life of any and all portions of the Project (whether considered alone or as an average useful life of such portions). 3 2