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• The full faith and credit of the City are pledged to the payment of the Bonds and interest thereon. The City is authorized and required to levy on all property within the City subject to taxation by the City such ad valorem taxes as may be necessary to pay the Bonds and the interest thereon, without limitation as to rate or amount. Each bid must be accompanied by a certified or bank cashier's check for $ drawn upon an incorporated bank or trust company and payable to the order of the City of Charlottesville, Virginia, to secure the City against any loss resulting from failure of the bidder to comply with the terms of its bid. The check of the bidder whose bid is accepted will be deposited by the City and credited on the purchase price. The proceeds of the check will be retained by the City as liquidated damages in case the bidder fails to accept delivery of and pay for the Bonds. No interest will be allowed on such good faith check. Checks of unsuccessful bidders will be returned upon the award of the Bonds. The right to reject any or all of the bids or to waive irregularities or informalities in any bid is hereby reserved. All bids must be unconditional. The Bonds will be delivered to the successful bidder in New York, New York, or Richmond, Virginia, or such other place as is mutually agreed upon by the City and the successful bidder, on • , or as soon thereafter as possible. Settlement for the Bonds must be in FEDERAL FUNDS. The opinion of Wood Dawson Smith & Hellman, New York, New York, Bond Counsel to the City, approving the validity of the Bonds, will be furnished the successful bidder for the Bonds at the expense of the City, and such opinion will be printed on the reverse of the Bonds. Such opinion will state that the Bonds constitute valid and legally binding obligations of the City, and the City has power and is obligated to levy ad valorem taxes for the payment of the Bonds and the interest thereon upon all property within the City subject to taxation by the City, without limitation of rate or amount, it being understood that the rights of the holders of such Bonds and the enforceability thereof may be subject to judicial discretion, to the exercise of the sovereign policy powers of the Commonwealth of Virginia and the constitutional powers of the United States of America, and to valid bankruptcy, insolvency, moratorium and other laws affecting creditors' rights. Such opinion will also state that, under existing law and regulations, the interest on the Bonds (i) is excluded from gross income for federal income tax purposes, and (ii) is not an item of tax preference for purposes of the federal alternative minimum tax imposed on corporations and taxpayers other than corporations; it will be further stated that Bond Counsel expresses not opinion regarding other federal tax consequences arising with respect to the Bonds. The opinion will • further state that, under the existing law of the Commonwealth of Virginia, the interest on the Bonds is not includable in computing the Virginia income tax on individuals. The City will