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rehabilitation, equipping and improvement of the Project, and take such other steps as it may deem
appropriate in connection with the Project and the Plan of Financing, provided, however, thiat
nothing in this Resolution shall be deemed to authorize the Borrower to obligate the Authority
without its consent in each instance to the payment of any moneys or the performance of any acts
in connection with the Project and the Plan of Financing. The Authority agrees that the Borrower
may be reimbursed from the proceeds of the Bonds for all expenditures and costs so incurred by
it, provided such expenditures and costs are properly reimbursable under the Act, the Code, arid
any other applicable federal or state laws: :
4, The Borrower has represented to the Authority that interest on the Bonds is intended
to be generally excluded from the gross income of the holders thereof for federal and Virginia
income tax purposes, and that the Borrower shall pay to the authority an administrative fee for
issuing and carrying the Bonds, due to the Bonds’ expected maturity, equal to one-half of 1% of
the original principal amount of the Bonds, at closing.
5. All eligible tax-exempt costs and expenses in connection with the Plan of Financing
and the acquisition, renovation, rehabilitation, equipping and improvement of the Projeci,
including the fees and expenses of the Authority, Bond Counsel, and counsel for the Authority
shall be paid by the Borrower or, to the extent permitted by applicable law, from the proceeds of
the Bonds. If for any reason such Bonds are not issued, it is understood that all such expenses
shall be paid by the Borrower and that the Authority shall have no responsibility therefore.
6. In adopting this Resolution the Authority intends to take “official action” toward
the issuance of the Bonds and to establish its “official intent” to issue tax-exempt bonds within the
meaning of Treasury Regulation Section 1.150-2 as promulgated under the Code, and to allow the
Borrower to be reimbursed from the proceeds of the Bonds for any expenditures paid by the
Borrower to finance or refinance the acquisition, renovation, rehabilitation, equipping and
improvement of the Project and the planning therefore prior to the issuance of the Bonds, all within
the meaning of regulations issued by the Internal Revenue Service pursuant to Sections 103 and
141 through 150 and related sections of the Code.
7. The Borrower intends to utilize the proceeds from the sale of the Bonds and LIETC
proceeds or other debt incurred or equity obtained to pay the costs of the Project in an amount not
currently expected to exceed $93,000,000. Such amount may be revised as the Bond issue is sized
and structured, but the aggregate principal amount of the Bonds, without taking into account
original issue premium, shall not be increased without the approval of the Authority. Any taxable
debt incurred by the Borrower to finance the Project may be refinanced with tax-exempt bonds as
approved by Bond Counsel.
8 ‘The Bonds shall not be a general obligation debt of the Commonwealth or any
political subdivision thereof, including the Authority or the City, and neither the Commonwealth,
nor any political subdivision thereof, including the Authority or the City, nor any officials, officers,
commissioners and/or employees, past, present or future, of any or all of them, are or shall be
personally liable thereon. The Bonds, together with the premium, if any, and the interest payable
thereon, shall be a limited obligation of the Authority payable solely by the Borrower from”
revenues, receipts and payments specifically pledged therefor pursuant to the terms of the BondsJump to an indexed page (43 of 43)