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• A RESOLUTION AUTHORIZING THE CITY OF CHARLOTTESVILLE, VIRGINIA, TO CONTRACT A GENERAL OBLIGATION INDEBTEDNESS IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED TWO MILLION FIVE HUNDRED THOUSAND DOLLARS ($2,500,000) FOR THE PURPOSE OF PROVIDING FUNDS TO PAY THE COSTS OF CAPITAL SCHOOL IMPROVEMENT PROJECTS OF AND FOR THE CITY; AUTHORIZING THE CITY TO ENTER INTO A LOAN AGREEMENT OR FINANCING AGREEMENT WITH SUNTRUST BANK EVIDENCING SUCH INDEBTEDNESS AND AUTHORIZING THE CITY MANAGER TO EXECUTE AND DELIVER SUCH LOAN AGREEMENT OR FINANCING AGREEMENT TO SUNTRUST BANK; DESIGNATING SUCH GENERAL OBLIGATION INDEBTEDNESS AS A "QUALIFIED TAX-EXEMPT OBLIGATION' FOR PURPOSES OF SECTION 265 OF THE INTERNAL REVENUE CODE OF 1986; AND OTHERWISE PROVIDING WITH RESPECT TO SUCH GENERAL OBLIGATION INDEBTEDNESS WHEREAS, in the judgment of the Council of the City of Charlottesville, Virginia (the "City"), it is necessary and expedient to authorize the City to contract a general obligation . indebtedness in the principal amount of not to exceed Two Million Five Hundred Thousand Dollars ($2,500,000) for the purpose of providing funds to pay the costs of capital school improvement projects of and for the City; NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF CHARLOTTESVILLE, VIRGINIA: 1. Pursuant to Chapter 26 of Title 15.2 of the Code of Virginia, 1950 (the same being the Public Finance Act of 1991), for the purpose of providing funds to pay the costs of capital school improvement projects of and for the City, the City is authorized to contract a general obligation indebtedness in the principal amount of not to exceed Two Million Five Hundred Thousand Dollars ($2,500,000)(such general obligation indebtedness being referred to hereinafter as the 'Borrowing"). The Borrowing shall be made by the City from SunTrust Bank (the 'Bank") and shall be evidenced by a Loan Agreement or a Financing Agreement to be entered into by and between the City and the Bank, and the City Manager is authorized to execute and deliver to the Bank a Loan Agreement or Financing Agreement in such form as the City Manager shall approve upon advice of counsel (including the City Attorney and Bond Counsel to the City), such approval to be conclusively evidenced by the execution and delivery of such Loan Agreement or Financing Agreement by the City Manager; provided that (i) the term of the Borrowing shall be for a period of not to exceed five (5) years from the date the Borrowing is made; (ii) the principal of the Borrowing shall be paid in monthly installments, in arrears, commencing on such • date as shall be determined by the City Manager, such monthly installments to be based on a ten 381730.1 024331 RFS