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Notice, a Summary of Statements at the Public Hearing, and a copy of the Authority's authorizing • resolution (the "Resolution") approving the issuance of the Bond, subject to the terms to be agreed upon, have been filed with the City Council as required by law. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CHARLOTTESVILLE, VIRGINIA: 1. Approval of Authority's Issuance of Bond For Benefit of IPI. The City Council concurs with the Resolution and approves the Project and the issuance of the Bond by the Authority for the benefit of IPI. 2. No Endorsement to Bond Purchasers. The approval of the issuance of the Bond does not constitute an endorsement to prospective purchasers of the Bond or the creditworthiness of the Project or IPI. 3. No Full Faith and Credit Pledge. The Bond shall provide that it shall not be deemed to constitute a debt or pledge of the faith and credit or taxing power of the Commonwealth of Virginia, or any political subdivision thereof, including the Authority and the City, and neither the Authority nor any other political subdivision shall be obligated to pay the principal of, premium, if any, or interest on the Bond or other costs incident thereto, except from the revenues and monies pledged therefor, and neither the faith and credit nor the taxing power of the Commonwealth of Virginia, or any political subdivision thereof, including the Authority and the City, shall be pledged • for the payment of principal or premium, if any, or interest on the Bond or other costs incident thereto. 4. "Bank -Qualified" Designation Matters. A. Deemed "Bank -Qualified" Designation - Refunding Portion of Bond: It is to be understood that bond counsel for the Bonds has advised the City that such allocable portion of the Bond that shall refinance and refund the outstanding amount of the Prior Bonds (the "Refunding Portion") has previously been designated by the Authority as "bank -qualified", and accordingly, shall be deemed designated for purposes of Section 265(b)(3)(D) of the Internal Revenue Code of 1986, as amended (the "Code") regarding the $10,000,000 small issuer exemption thereof. Accordingly, such portion of the Bonds allocable to the Refunding Portion (to retire the Prior Bonds) will not be taken into account in determining the status of the City (including any subordinate entities thereof) as a qualified small issuer for the calendar year 2002 pursuant to Section 265(b)(3)(C)(ii)(p of the Code. B. "Bank Qualified" Designation as to New Money Portion of Bonds: As to the New Money Portion of the Bonds, the City hereby approves the Authority's designation of the New Money Portion of the Bonds as "bank -qualified" under the Code. In such regard, the City does not reasonably anticipate having more than $10,000,000 in qualified tax-exempt obligations during calendar year 2002 and the City, including any subordinate entities thereof, do not reasonably 0 2