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DRAFT 1:03/03/99 <br /> <br />Section 9 - Defeasance <br /> <br /> The obligations of the City under this Ordinance and covenants of the City provided for <br />herein shall be fully discharged and satisfied as to the Notes and the Notes shall no longer be <br />deemed to be Outstanding thereunder when the Notes shall have been purchased by the City and <br />canceled or destroyed, when the payment of principal of the Notes, plus interest on such prin- <br />cipal to the due date thereof either (a) shall have been made or (b) shall have been provided for <br />by irrevocably depositing with the Paying Agent for the Notes, money sufficient to make such <br />payment, or direct and general obligations of, or.obligations the principal of, and interest on, <br />which are guaranteed by, the United States of America, maturing in such amounts and at such <br />times as will insure the availability of sufficient monies to make such payment. <br /> <br />Section 10 - General Obligation <br /> <br /> The Council, in accordance with Section 7 of Chapter 11 of the City Charter 'and Section <br />15.2-262,4 of the Act, is hereafter 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 assessed, levied and collected, a <br />tax upon all taxable property within the City, over and above all other taxes, authorized or <br />limited by law and without limitation as to rate or amount, sufficient to pay when due the <br />principal of and premium, if any and interest on the Notes, to the extent other funds of the City <br />are not lawfully available and appropriated for such purpose. <br /> <br />Section 11 - Event of Default <br /> <br />Each of the following shall constitute an event of default hereunder: <br /> <br />(a) Failure to pay the principal of the Notes when due; <br /> <br />(b) Failure to pay interest on the Notes when due; <br /> <br /> (c) Failure of the City to perform any other covenant or agreement contained <br />in this Ordinance, which failure shall have continued for 60 days aRer the notice thereof from the <br />Holders of not less than twenty percent (20%) of the Notes Outstanding; provided, however, that <br />if any such failure shall be such that it cannot be cured or corrected within a 60-day period but is, <br />in fact, susceptible of cure or correction, it shall not constitute an Event of Default if curative or <br />corrective action is instituted within said period and diligently pursued until the failure of per- <br />formance is cured or corrected; <br /> <br /> (d) The instituting of any proceeding with the. consent ofthe City for the <br />purpose of effecting composition between the City and its creditors or for the purpose of <br />adjusting the claims of creditors pursuant to any federal or state statute; or <br /> <br />14 <br /> <br /> <br />