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Section 9 - Defeasance
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<br /> The obligations of the City under this Ordinance and covenants of the City provided for
<br />herein shall ble fully discharged and satisfied as to the Bonds and the Bonds shall no longer be
<br />deemed to be Outstanding thereunder when the Bonds shall have been purchased by the City and
<br />caneclef or destroyed, when the payment of principal of the Bonds, 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 Bonds, 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.
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<br />Section 10 - General Obligation
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<br /> The Council, in accordance with Section 7 of Chapter 11 of the City Charter and Section
<br />15.2-2624 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 Bonds, to the extent other funds of the City
<br />are not lawfully available and appropriated for such purpose.
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<br />Section 11 - Eventof Default
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<br />Each of the following shall constitute an event of default hereunder:
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<br />(a) Failure to pay the principal of the Bonds when due;
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<br />(b) Failure to pay interest on the Bonds when due;
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<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 after the notice thereof from the
<br />Holders of not less than twenty percent (20%) of the Bonds Ou, tstanding; 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;
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<br /> (d) The instituting of any proceeding with the consent of the 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
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<br /> (e) If the City for any reason shall be rendered incapable of fulfilling its
<br />obligations under this Ordinmme.
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<br /> Upon the occurrence of an Event of Default, the Holders of not less than twenty-five
<br />pement (25°/~;) in principal amount of the Bonds then Outstanding may declare the principal of all
<br />of the Outstanding Bonds 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 further action has been taken, all arrears of interest on, and prihcipal of, the
<br />Bonds shall have been paid and all other Events of Default, if any, which shall have occurred
<br />have been remedied, then the Holders of such majority in principal amount of the Outstanding
<br />Bonds may waive such default and annul such declaration.
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<br /> If an Event of Default shall have occurred and be continuing, then the Holders of not less
<br />than twenty-five percent (25%) in principal amount of the Bonds then Outstanding may call a
<br />meeting of the Holders of Bonds for the purpose of selecting a Bondholders' committee (the
<br />"Bondholders' Committee"). At such meeting the Holders of not tess than a majority in
<br />principal amount of the Outstanding Bonds must be present in person or by proxy in order to
<br />constitute a quorum for the transaction of business. A quorum being present at such meeting, the
<br />Bondholders present may, by a majority of the votes cast, elect one or more persons who may or
<br />may not be Bondholders to the Bondholders' Committee. The Bondholders' Committee is
<br />empowered to exercise, as trustee for the Bondholders, all the rights and powers conferred on the
<br />Bondholders in the Ordinance.
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<br /> In case an Event of Default shall occur, subject to the provisions referred to in the
<br />preceding paragraph, the Holders of the Outstanding Bonds shall have the right to protect the
<br />rights vested in such Holders by the Ordinance by such appropriate judicial proceeding as such
<br />Holders shall determine either by suit in equity or by action at law.
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<br />Section 12 - Enforcement bv Bondholders
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<br /> The Holders of the Bonds may.by mandamus or other appropriate proceeding at law or in
<br />equity in any court of competent jurisdiction, enfome and compel performance of this Ordinance
<br />and every provision and covenant thereof, including without limiting the generality of the
<br />foregoing, the enforcement of the performance of all obligations and duties and requirements to
<br />be done or performed by the City by the Ordinance or by the abplicable laws of the
<br />Commonwealth.
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<br />Section 13 - M0dification_gf Bond Ordinance
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<br /> The City may, without the consent of the Bondholders, 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 Bondholders additional rights.
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