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Se6jon 9 Defe'asanee
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<br /> The obligations of the City under this O~linance and covenants of the City provitied for
<br />hm~in mhall be fully disc, ht, gedsugd~fredutotheNotea;udtheNetem'~alinoinuSer~
<br />deenedtobeOu~mstlin~tbe.m=sieswhenteN~eahalll~v,~beenputchmodbYtheCityand
<br />
<br />totheduedatethc~ofoithcr(a) sha!lintvebeeumade~tCo}shallhavebeeupn~'vldedfotbY
<br />ifi~,ve~ly d~un~dngvdth tlg pay~g Agenl for the Note, men~y~ullideat lomake such
<br />times as ~I1 insure the availability ofsutrgieat monies to m_.~ke such
<br />
<br />Section 10 General
<br />
<br /> 'Fhe ~l, in accordance with Section 7 of Chapter 11 of the City ~ and Seelion
<br />t5.2-2624 of the Act, is h~r~t~er an~norize~ and required to |evy and coileel a~nually, at rig
<br />same time and in the s~m¢ manne~ ~s othe~ taxes of the City al~ assessed, levied and collected,
<br />tax upon all laxable property within the City, eves and above all other taxes, aufl~odzed or
<br />limited by |aw and without limttahon as te rate of amount, sufficient to pay wheat due the
<br />Finclpal of and Pr~nlum, if any and interest o~x the Note, to the e,xlent Other funds of llg City
<br />In: Rot la~vfutiy available axt~ approptiate~ for such purpose.
<br />
<br /> SeXton 11 Event of Default
<br />
<br /> Each oflhe fo|lowlng shah con~itu~ an event ofdefault hereundeE
<br />
<br /> FaRu~ to pay the principal of the Note when d
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<br /> b. F~lu~top~yimeres~on the Note wben due;
<br />
<br /> c. FaikweofthcCitytopedofmanyothercovenantora~e~ne~lcootainedinthis
<br /> Ordinance. which failure ~ have continued fo~ 60 days a~er fl~e notice thereof f~om
<br /> Holde~ of not h:us than ~,/enly percent (20*.4) of the Note Outs~nding; For|tied, howeyes, that
<br /> if any such failure sh~ll be such that it cannot be cured or corrected within a 60-day period bet
<br /> in fact, susceptible of cure or cot~eetioo, it shall not constitute an Event o f Default if curative or
<br /> corrective action is instituted within said period und diligently pox'sued until the failu~ of per-
<br /> formance is cured ot corrected;
<br /> d. 'f~ instlt~v~ of any proceeding with the consenl o~ th~ City for the ptuposu of
<br /> effectlug composition between the City and its eredlto~s or for the purpose of adjusfin,~ the
<br /> claims of creditors pursuant 1o any federal or state ~tatote; or
<br />
<br /> e. If the City for any reason shall be rendered incapable of fulfilling its obligations
<br />under lhis Odinanco.
<br />
<br /> Upon the o~ul. mlce of an Event of Defau|t, rig Hol&s of not less than twet~ty-tlve
<br />pm,ccot(25%)inF.~mmountoftheNot~'thcu. Outstandingtm. yd~clm'etkeptiuclpalofatl
<br />oftheOut~andingNotcanddlaeeru, ed and Wdd intorest thereon m be due and PaYable
<br />
<br />Not~d~a~havebeenpaidandal~therEveots~fDefmu`~ifm~y~whichsba~have~couw:dhave
<br />be~m t~nedied, amentheHoldersofsuchmajodtyinlnindlnlamountofthe~Nute
<br />nny waive such default and solo1 sl~ch decisra~un.
<br />
<br /> If an Event of Defauh shall have occ~n~i and be continuing, then the Holde~rs of not
<br />than twe~ty-llve ~ (25%) in pdncip~ amount o f the Note then Outs~-~ling
<br />meetin~ of the Holders of Note for the purpose of selectin~ a Noteholders' comraittec (the
<br />"NotehoMers Committee"). At such mceqlng the Holders of not less than a majority in
<br />principal amount of the Outs~nding Note must be pre~nt in pe~on or hy prox~ in order to
<br />constitute a quorum for tht h-an.~on of business A qttontra being present at such meetlog, the
<br />Notcholdus present may, by a majority of the votes c~sl, elect on~ or re, re perseus who may or
<br />may not be Noteholders to the Notcholden' Committee. The Notcholden' Connnitzee
<br />env~owered to exercise, as ~-dstee for the Noteholdcr~ all the tiShts and powers conferred on the
<br />Noteholder in the Ordinance.
<br />
<br /> In ~ an Event o f Defa~t shall occur, stthjea to the provisions re fen'ed to in the
<br />precedin~ pm:a~aph. the Holder of the Outsounding Note ~hall have ~e figla to proreel the rights
<br />vested in such Holder by the Ordinax'we Ity such aplxopdate judicial proceiling
<br />shah datennine either by suit in equity or by action at law.
<br />
<br /> Se~lien 1'~ Enforcement hy Noteholder
<br />
<br /> 'Ihe Holdu of the Note may liy mandames cr other appropriate proceedin~ at law or in
<br /> equity in any court ofco~entjudsdiclion, erietee and cornpal perlenuance of this Oniinance
<br /> and every ~vision and coveant thez~o~ including without limiting the generality of the
<br /> foregoing, the erdoreemen~ of the perfonnance of all obligations and dnti~ and requit~nnents to
<br /> be done or performed by the City by the Ordinance or by the applicable laws of the
<br /> Conunonwealth.
<br />
<br /> Section 13 Modification of Note Ordinance
<br />
<br /> The City may without the consent of the Noteholder make any r~fic~tion or
<br /> amendment of this Ordin~ce r~tuired to cure any ~mbiguity or error he~-in co~ or to
<br /> make any ame~adments ho~'to ~r to l~t to the Notcholder additional rig|us.
<br />
<br /> The Holder~ of not le~s than six~-six and two-fidrds pesceot (66-2/3%) in principal
<br />smomxtoftheO~NoteshallhavethepowertoauthotizeanYm°dificafi°nstothis
<br />oftheHohkroffl,eNotoa/feotedtheRby, no modifications dall be made which will (a) e~e~d
<br />tle~ingofln~,anentofpfincipalof;ori~t~reston,theN°~eorreducethePtin°iP~lam°unt
<br />thete~f~rtherate~finteteat~iere~n;(b~give~h~N~cau~`p~ef~tznc~:~vetmy~thernote~r
<br />I~mdsec~equ~andr~the~ (e)deptivetheNeteholderOf~hesuco-'~ym~orded
<br />by thls Ot~ or (d) reducothepen~nUgeinprindP~lamountoftheNoterequlredto
<br />anthodze~ymodificathmtotheOrdin. auce.
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<br />Section 14 Apnlication of pro~eds: Slle of Note
<br />
<br /> Pwceeds derived from the ~ of the Note together with other monies availshie therefor
<br />shglbeusedtopaylhecos~sofis~neea~dotherexPensesoftheCityretatingtothexesuancc
<br />oftheNoteandtherosfieranyrenulningfundstobedePositedinthePt°ceedsFut~dshallbe
<br />medfecthepuxposes~:alledinSection2ofthisOrdinanceandcth~'wiseme~inaee°rdance
<br />~ththeprovlsinnsofthisOrdinanceoranoVinionofBondC. ounsd. Intorestaeerulngonthe
<br />principal of the Proceeds Fund and any proill seallzed f~om it my be lrdsufen~d to the Note
<br />Fund to be opplied to the payment of int erosl cn the Note during the acquisition, cottsuuc~ot~
<br />inxprove~rteot and equipping of the Project.
<br />
<br /> Seallea 15 No Arb|lra~e Covenant and Covenants and Deserter|one as t~ the Code
<br /> The City bereby coveunnL~ that it will not use or inves~ or petrail the use or investnero of
<br /> any proceeds of the Note, in a manner ~ wo~ki cause the Note to be subjected to treatment
<br /> ~nde~ Section t46 oflhe Code and the tegulat~oes adopted thereunder as ~n "srbitrage
<br /> and to that end the City shell comply with tpplicable se~ulations adopted unde~ said Section
<br /> offfi~ Code.
<br />
<br /> Ihe City covenants to comply with the Cc<le provisions t~tu~in8 th~ any issuanc~ of
<br /> 'gov~-p/Deutal bo~ds," as de~ned thefei~ be ~-ubjec~ to ~ fequirezr~ents as to t~b,~e and
<br /> timing and typeofpayments to bel~id for from thePr°eeeds ofsuchnotes, as well as°ther
<br /> addilional requirements. In o~les to assure complhnce v.4th such Code pro,,is~ous, th~ City has
<br /> entered into a Con~liance C~fF.,~e, to comply with such t~lui~en~nts and covenan~ therein
<br /> thatitwiHno~breachthetermsthereof.
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<br /> The Council, on beh~ of the City, hazby designates the Note o.~ a "q~alifled
<br /> oblige" as aleruled in Seelion 265CoX3XB) of the Code and coaif~es by this Oeilnance theat is
<br /> doesnota:ason,blyonticipa~etheiss~mncehyilorilssuboniinateer'titiesofm°eeffian
<br /> $10,000,000 in "q~alif, ed tsx-exe~ obligations* dining the ~&knder yexr 2000 and win no~
<br /> ~m~s(~¢~me~fi~s~a~dinateentities~du~ngtheodeadat~e~r2~*dich~u~d¢aasethe
<br /> $~0,000,000 limiminn of ~ec~m 2650~X3X D) of me Coae to be ~
<br />
<br /> The Council intends for tt~ Note to be treated as enn~lylng with the provisions of
<br />S~ction 148(Q(4XD) of the Code, which provides an axeopt|on flora the "rebate tequir~nnent."
<br />sincetheNoto(I)isissuedbythoCitywhichisagovernmentalunitwiffigenenhs-xingP°wen,
<br />C2) no bend which is apart ofthis issac is ap6vate aotivity bend, O) 9~%°rm°re°flbene~
<br />jutisdicfionoftheCity, and(4) the~f:zeamountofaHtax-exemPtnutesnndhond~
<br />(otherthanprivate~c~vityb~nds~issuedbytheCitydurin~fl~eealendaryeer2~(andnores
<br />and bends issued by any subordinate entity of the Cily) is not reasonably e~od to exceed
<br />$5,0Q0,000 except theat, pursuam to the pro~islous of Sec'~ 1 d~(f. K4)(DX vii) of the Code, thjs
<br />amoon~ of S 5,000,000 may ~ by the lesser of $5,000,000 or so much of the a~e fac~
<br />moourn of ~l ~x -axerapt bond~ (other ~ private antivlty bends) issued by the City dinlug
<br />calendar year 2:000 (and notes and bends issued by ,ny ~ubordinate et~i~ of ~ City)
<br />am'thutabte to ~ the coupon (within the meaning ofSeclion 148(t)(4X C~iv) of the
<br />Code) of public school facilities.
<br />
<br />Seelion 16 Further Action~ Aorhorlzed
<br />
<br /> The Mayor and Clerk of the Council and the City ManSes, City Ttusurer, City
<br />Attorney, Bond Coume[ and all other ofiiesrs. employees and agents of the City am hereby
<br />authorized and direaed to take any and all such further action as shall be dae~ed necessary or
<br />desirable in order to effectuate <ietivery of, and payment for, the Note all in accordanc~ with the
<br />
<br /> Section 17 Invaliditv of Sections
<br />
<br /> If ~ny s~xion, parch, clatse or provision of this Ordi nanc~ sh~l be hold invalid or
<br /> uncoforceabte for any reesut~ the uiv~lidity or unelnforeeability of such ~:c~ion, paragraph,
<br /> clause or pro'de|on shall not affecl ~y of the remainlug portions of this Ordinar~e.
<br />
<br /> Se6jou 18 Headin~ of Sections, T~ble ~,fContents
<br />
<br /> The beadlugs of the ~-~io~ of this Ch-dinanc~ ar, d rite Table of Conicors ~pended hor~o
<br /> or to copies hereof shall be soldy for c~y~tv~jence oftde~ence sod ~hall noi aff. ea the meaning,
<br /> coralfuel|on, inte~reta6on or effect of such sect|cos of this Ordinance.
<br />
<br /> See~on 19 Effectiveness and Fllilx[ of Ordinane,
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<br /> The Council hereby dec[awes in the public inter'eat that ~n e~nugency exists and that this
<br /> Otdinance~hallbecomeeffec~ivcuponiispessag~asptovidedfotintheAotanda~an
<br /> e~measurep,srsuanttoSectio~a3ofC~usptot3oftheCitYChafler- A~:~f~edcopyof
<br /> thisOniin,neeshllbe~ileabytheCletkwithlheClet'koftheCitcuitC°m"t°flheCitY°f
<br /> Masfinsville, Virginia. The filingofthis Orditumce wlth the Cle~kofthe Citcuit C°m't°fthe
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