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2021-08-04 VRA Revenue-Refunding Bonds RESOLUTION #2021-08-04 RESOLUTION AUTHORIZING AND PROVIDING FOR THE ISSUANCE,SALE AND AWARD OF TWO SERIES OF SOLID WASTE SYSTEM REVENUE AND REFUNDING BONDS OF PITTSYLVANIA COUNTY,VIRGINIA,IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $9,000,000, AND PROVIDING FOR THE FORM, DETAILS AND PAYMENT THEREOF WHEREAS, the Industrial Development Authority of Pittsylvania County, Virginia (the "Authority"), previously issued its $1,803,802 Lease Revenue Bond (County Projects), Series 2018A (Federally Tax-Exempt) (the "2018A Bond"), and loaned the proceeds thereof to Pittsylvania County, Virginia(the"County"), pursuant to a Lease Agreement dated as of April 1, 2006, as amended by the First Amendment to Lease Agreement dated as of January 1, 2018, each between the Authority and the County,to finance (a)solid waste system improvements, including (i) the acquisition of a bulldozer and pan scraper for the County landfill (the "2018 Landfill Project"), and (ii) the acquisition of a grappler truck and three roll off trucks for the County's compactor sites (the "2018 Compactor Site Project" and, together with the 2018 Landfill Project, the "2018 Projects"), (b) the acquisition and installation of a centrifugal water-cooled chiller for the courthouse building and (c)the acquisition, renovation and equipping of an existing building to convert it for public library purposes; WHEREAS, the Board of Supervisors of the County (the "Board") desires to refund the portion of the outstanding 2018A Bond allocable to the 2018 Landfill Project (such refunded portion,the"Refunded 2018A Landfill Installments")to(a)change the security for such financing from a pledge of subject-to-appropriation lease payments to a pledge of revenues of the County's solid waste system (the"System") and (b)afford the County greater flexibility with respect to the operation, management and use of the System; WHEREAS, the Board desires to refund the portion of the outstanding 2018A Bond allocable to the 2018 Compactor Project(such refunded portion,the"Refunded 2018A Compactor Installments"and,together with the Refunded 2018A Landfill Installments,the"Refunded 2018A Installments")to change the security for such financing from a pledge of subject-to-appropriation lease payments to a pledge of revenues of the System on the condition that the refunding of the Refunded 2018A Compactor Installments achieve an aggregate net present value debt service savings of not less than 3.00% of the refunded par amount of the Refunded 2018A Compactor Installments (the"Targeted Savings"); WHEREAS, the Board also desires to finance various capital projects related to the County's solid waste system (the"System"), including(without limitation)(a)opening a new cell in the County's landfill and acquiring equipment for use at the landfill(the"2021 Landfill Project") and (b) constructing and equipping three new convenience centers and improving an existing convenience center (collectively, the "2021 Convenience Center Project" and, together with the 2021 Landfill Project, the "2021 Projects"); r,� WHEREAS, the Board has determined to issue two solid waste system revenue and refunding bonds (the "Bonds" as further described in Section 3 herein) to (a) refinance the 2018 Landfill Project on a federally taxable basis, (b) refinance the 2018 Compactor Site Project on a federally tax-exempt basis, (c) finance the 2021 Landfill Project on a federally taxable basis and (d)finance the 2021 Convenience Center Project on a federally tax-exempt basis; WHEREAS, the Board has determined to provide additional security for the Bonds by entering into a non-binding undertaking to consider annual appropriations in amounts sufficient to pay debt service on the Bonds to the extent revenues of the System are insufficient therefor; WHEREAS,the County has applied to the Virginia Resources Authority("VRA")for the purchase of the Bonds, and VRA has indicated its willingness to purchase the Bonds from the proceeds of one or more series of its Infrastructure and State Moral Obligation Revenue Bonds (Virginia Pooled Financing Program) (collectively, the "VRA Bonds") in accordance with the terms of two Local Bond Sale and Financing Agreements to be dated as of a date specified by VRA (each a "Financing Agreement" and, collectively, the "Financing Agreements"), between VRA and the County, forms of which have been made available prior to this meeting; WHEREAS, the Financing Agreements shall indicate that the aggregate amount of VRA Bond proceeds requested will equal the sum of(a) $7,186,230 to finance the 2021 Projects plus (b) an amount sufficient to refund the Refunded 2018A Installments and pay the related costs of issuance and refunding,which amount may be revised at the written request of the County prior to VRA's bond pricing if approved by VRA (such final amount, the "Proceeds Requested"); WHEREAS, VRA has advised the County that VRA's objective is to pay the County a purchase price for the Bonds (the "Purchase Price Objective") that, in VRA's judgment, reflects its market value taking into consideration the Proceeds Requested, the Targeted Savings and such other factors as the purchase price received by VRA for the VRA Bonds,the issuance costs of the VRA Bonds (consisting of the underwriters' discount and other costs incurred by VRA and collectively referred to herein as the"VRA Costs")and other market conditions relating to the sale of the VRA Bonds; WHEREAS, such factors are expected to result in the County's receiving a purchase price other than the par amount of the Bonds, and, consequently, (a) the aggregate principal amount of the Bonds may be greater than or less than the Proceeds Requested in order to receive an amount of proceeds that is substantially equal to the Proceeds Requested,or(b)if the maximum authorized principal amount of the Bonds set forth in Section 3 of this Resolution does not exceed the Proceeds Requested by at least the amount of the VRA Costs and any original issue discount,the amount to be paid to the County, given the Purchase Price Objective and market conditions, will be less than the Proceeds Requested; and WHEREAS, the Financing Agreements will provide that the terms of the Bonds may not exceed the parameters set forth below in Section 3; NOW,THEREFORE,BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF PITTSYLVANIA COUNTY, VIRGINIA: 2 1. Issuance of Bonds. Pursuant to the Constitution and statutes ofthe Commonwealth of Virginia, including the Public Finance Act of 1991, the Board hereby authorizes and provides for the issuance and sale of (a) a solid waste system revenue and refunding bond (the "2021 A Bond") to provide funds to (i) refinance the 2018 Landfill Project by refunding the Refunded 2018A Landfill Installments, (ii) finance the 2021 Landfill Project and (iii) pay the related costs of issuance and refunding and (b) a solid waste system revenue and refunding bond (the"2021B Bond") to provide funds to (i) refinance the 2018 Compactor Site Project by refunding the Refunded 2018A Compactor Installments, (ii) finance the 2021 Convenience Center Project and (iii)pay the related costs of issuance and refunding. 2. Authorization of Financing Agreements. The forms of the Financing Agreements made available prior to this meeting are hereby approved. The Chairman and Vice Chairman of the Board and the County Administrator, any of whom may act, are authorized to execute and deliver the Financing Agreements in substantially such forms,with such completions, omissions, insertions and changes not inconsistent with this Resolution as may be approved by the Chairman or Vice Chairman or the County Administrator, whose approval shall be evidenced conclusively by the execution and delivery thereof. The issuance and sale of the Bonds to VRA shall be upon the terms and conditions set forth in the Financing Agreements. The proceeds of the Bonds shall be applied in the manner set forth in the Financing Agreements. All capitalized terms used but not defined herein shall have the same meanings as set forth in the Financing Agreements. 3. Bond Details. (a) The 2021A Bond shall be issued as a single, registered bond, shall be designated "Taxable Solid Waste System Revenue and Refunding Bond, Series 2021A (Landfill Projects)," shall be numbered RA-1, shall be dated the date that is 30 days prior to the closing date of the VRA Bonds and shall be purchased with proceeds of or allocated to federally taxable VRA Bonds. The Board authorizes the issuance and sale of the 202IA Bond on such terms as shall be determined by VRA subject to VRA's Purchase Price Objective and the market conditions described in the Recitals hereof; provided, however, that the 2021 A Bond (i) shall be issued in a principal amount not to exceed $4,000,000, (ii) shall have a"true" interest cost not to exceed 3.00%(exclusive of"Supplemental Interest"as provided in the Financing Agreement),and (iii)shall be payable in principal installments ending not later than December 31, 2028. (b) The 2021B Bond shall be issued as a single, registered bond, shall be designated "Taxable Solid Waste System Revenue and Refunding Bond, Series 2021 B (Convenience Center Project)," shall be numbered RB-1, shall be dated the date that is 30 days prior to the closing date of the VRA Bonds and shall be purchased with proceeds of or allocated to federally tax-exempt VRA Bonds ("Tax-Exempt VRA Bonds"). The Board authorizes the issuance and sale of the 2021B Bond on such terms as shall be determined by VRA subject to VRA's Purchase Price Objective and the market conditions described in the Recitals hereof; provided, however, that (i) the 2021B Bond(A)shall be issued in a principal amount not to exceed$5,000,000,(B)shall have a"true" interest cost not to exceed 3.00%(exclusive of"Supplemental Interest"as provided in the Financing Agreement), and (C) shall be payable in principal installments ending not later than December 31, 2036, and (ii) the refunding of the Refunded 2018A Compactor Installments shall achieve at least the Targeted Savings. If the Targeted Savings cannot be realized, the County Administrator is authorized to proceed with the financing of the 2021 Convenience Center Project upon the terms and within the parameters authorized above. 3 (c) Subject to the preceding terms, the Board further authorizes the County Administrator to accept the final terms presented by VRA,including(i)the final principal amounts of the Bonds, (ii) the amortization schedules (including the principal installment dates and amounts) for the Bonds and (iii)the optional and extraordinary redemption provisions, if any, of the Bonds,all in such manner as the County Administrator shall determine to be in the best interests of the County. (d) As set forth in the Financing Agreements, the County agrees to pay such "Supplemental Interest" and other charges as provided therein, including such amounts as may be necessary to maintain or replenish the VRA Reserve. The principal of and premium, if any, and interest on the Bonds shall be payable in lawful money of the United States of America. 4. Payment and Redemption Provisions. The principal of and premium, if any,and interest on each Bond shall be payable as set forth in such Bond and the applicable Financing Agreement. The County may, at its option, redeem, prepay or refund each Bond upon the terms established by VRA in the applicable Financing Agreement. 5. Execution and Form of Bonds. The Bonds shall be signed by the Chairman or Vice Chairman of the Board, and the County's seal shall be affixed thereon and attested by the Clerk of Board. The Bonds shall be issued initially as typewritten bonds in substantially the form of Exhibit A attached hereto, with such completions, omissions, insertions and changes not inconsistent with this Resolution as may be approved by such officers, whose approval shall be evidenced conclusively by the execution and delivery of the Bonds. 6. Pledge of Revenues. (a) Subject to the right of the County to apply Revenues of the System to the payment of Operation and Maintenance Expenses, the County irrevocably pledges the Revenues for the payment of principal of and premium, if any, and interest on the Bonds. (b) The County is required to fix and collect rates, fees and other charges for the use of and for services furnished or to be furnished by the System and will from time to time revise such rates, fees and other charges, or provide other legally available funds, so that in each Fiscal Year the Net Revenues Available for Debt Service, and any such other funds provided by the County, will equal at least 100% of the amount required during the Fiscal Year to pay principal of and premium, if any, and interest on the Bonds and all other indebtedness of the County payable from Revenues, including, without limitation, indebtedness under leases which are treated as capital leases under generally accepted accounting principles. (c) Nothing in the Bonds,the Financing Agreements or this Resolution shall be deemed to constitute a pledge of the faith and credit of the Commonwealth of Virginia or any of its political subdivisions, including the County. The issuance of the Bonds shall not directly, indirectly or contingently obligate the Commonwealth of Virginia or any of its political subdivisions, including the County, to pledge its faith and credit or levy any taxes for the payment of the principal of or premium, if any,or interest on the Bonds or other costs incident thereto or make any appropriation for its payment except from the revenues and other funds pledged for such purpose. Additional bonds secured on a parity as to the pledge of the Revenues with the Bonds may be issued on terms provided in the Financing Agreements. 4 7. Support Agreement. The Board acknowledges that, in the event the Revenues pledged under the Financing Agreements are not sufficient to(a)satisfy the rate covenant set forth in the Financing Agreements and (b) pay any amounts due under the Financing Agreements, the Board agrees to a non-binding undertaking to consider annual appropriations in amounts sufficient to satisfy such deficiencies, all as set forth in the Financing Agreements. 8. Preparation of Printed Bonds. The County shall initially issue the Bonds in typewritten form. Upon request of the registered owner and upon presentation of a Bond at the office of the Registrar(as hereinafter defined),the County shall arrange to have prepared,executed and delivered in exchange as soon as practicable the applicable Bond in printed form in a principal amount equal to the unpaid principal of such Bond in typewritten form and of the same form and maturity and registered in such names as requested by the registered owner or its duly authorized attorney or legal representative. The printed Bond may be executed by manual or facsimile signature of the Chairman or Vice Chairman of the Board and the County's seal affixed thereto and attested by manual or facsimile signature of the Clerk of the Board;provided,however,that if both such signatures are facsimiles, no Bond shall be valid until it has been authenticated by the manual signature of the Registrar and the date of authentication noted thereon. The typewritten Bond surrendered in any such exchange shall be canceled. 9. Registration and Transfer of the Bonds. The County appoints the County Treasurer as paying agent and registrar(the"Registrar")for the Bonds. If deemed to be in the best interests of the County,the County Administrator may at any time appoint a qualified bank or trust company as successor Registrar. Upon surrender of a Bond at the office of the Registrar, together with an assignment duly executed by the registered owner or its duly authorized attorney or legal representative in such form as shall be satisfactory to the Registrar, the County shall execute, and the Registrar shall authenticate and deliver in exchange, a new Bond or Bonds having an equal aggregate principal amount, of the same form and maturity, bearing interest at the same rates and registered in such name as requested by the then registered owner or its duly authorized attorney or legal representative. Any such exchange shall be at the expense of the County, except that the Registrar may charge the person requesting such exchange the amount of any tax or other governmental charge required to be paid with respect thereto. The Registrar shall treat the registered owner of the Bonds as the person or entity exclusively entitled to payment of principal thereof and premium, if any,and interest thereon,and the exercise of all other rights and powers of the owner of the Bonds, except that regular installments of principal and interest shall be paid to the person or entity shown as owner on the registration books on the 15th day of the month preceding each payment date. 10. Mutilated, Lost or Destroyed Bonds. If a Bond has been mutilated, lost or destroyed,the County shall execute and deliver a new Bond of like date and tenor in exchange and substitution for, and upon cancellation of, such mutilated Bond or in lieu of and in substitution for such lost or destroyed Bond; provided, however,that the County shall so execute and deliver only if the registered owner has paid the reasonable expenses and charges of the County in connection therewith and, in the case of a lost or destroyed Bond, (a) has filed with the County evidence satisfactory to the County that such Bond was lost or destroyed and(b)has furnished to the County satisfactory indemnity. 5 • err 3 r ,` t•F,a 11. Preparation and Delivery of Bonds. The officers of the County are authorized and directed to take all proper steps to have the Bonds prepared and executed in accordance with their terms and to deliver them to VRA as the purchaser thereof upon receipt of the purchase prices from VRA as set forth in the Financing Agreements. 12. Tax Compliance Agreement. Such officers of the County as may be requested are authorized and directed to execute and deliver a nonarbitrage certificate and tax compliance agreement (the "Tax Compliance Agreement") in a form not inconsistent with this Resolution as may be approved by the officers of the County executing such document, whose approval shall be evidenced conclusively by the execution and delivery thereof. 13. Arbitrage Covenants. The County covenants that it shall not take or omit to take any action the taking or omission of which will cause the Tax-Exempt VRA Bonds to be"arbitrage bonds"within the meaning of Section 148 of the Internal Revenue Code of 1986,as amended,and regulations issued pursuant thereto (the "Code"), or otherwise cause interest on the Tax-Exempt VRA Bonds to be includable in the gross income of the registered owner thereof under existing law. Without limiting the generality of the foregoing,the County shall comply with any provision of the Tax Compliance Agreement that may require the County at any time to rebate to the United States any part of the earnings derived from the investment of the gross proceeds of the 2021 B Bond, unless the County receives an opinion of nationally recognized bond counsel that compliance with any such covenant is not required to prevent interest on the Tax-Exempt VRA Bonds from being included in the gross income for federal income tax purposes of the registered owners thereof under existing law. The County shall pay any such required rebate from legally available funds. 14. Private Activity Bond Covenant. The County covenants that it shall not permit the proceeds of the 2021 B Bond or the facilities financed therewith to be used in any manner that would result in(a) 5%or more of such proceeds or such facilities being used in a trade or business carried on by any person other than a governmental unit,as provided in Section 141(b)of the Code, (b) 5% or more of such proceeds or such facilities being used with respect to any output facility (other than a facility for the furnishing of water), within the meaning of Section 141(b)(4) of the Code, or (c) 5% or more of such proceeds being used directly or indirectly to make or finance loans to any persons other than a governmental unit, as provided in Section 141(c) of the Code; provided, however, that if the County receives an opinion of nationally recognized bond counsel that compliance with any such covenant is not required to prevent the interest on the Tax-Exempt VRA Bonds from being includable in the gross income for federal income tax purposes of the registered owners thereof under existing law, the County need not comply with such covenant to the extent provided in such opinion. 15. Official Statement. The County authorizes and consents to the inclusion of information with respect to the County contained in VRA's Preliminary Official Statement and VRA's Official Statement in final form, both prepared in connection with the sale of the VRA Bonds. If appropriate, such disclosure documents shall be distributed in such manner and at such times as VRA shall determine. The County Administrator is authorized and directed to take such actions as may be necessary or appropriate to aid VRA in ensuring compliance with Securities and Exchange Commission Rule 15c2-12. 6 16. Prepayment of the Refunded 2018A Installments. The County Administrator is authorized and directed to take or direct the Authority to take all proper steps to prepay the Refunded 2018A Installments and to prepare and deliver any such notices and correspondence necessary therefor. The Chairman and Vice Chairman of the Board and the County Administrator, any of whom may act, are authorized to approve changes to the 2018A Bond and related financing documents, including the execution and delivery of an allonge to the 2018A Bond and any amendments to the related financing documents,as may be necessary to provide for the unrefunded portion of the 2018A Bond. The Clerk of the Board is authorized to affix the County's seal on any such documents and attest the same. 17. SNAP Investment Authorization. The County has heretofore received and reviewed the Information Statement describing the State Non-Arbitrage Program of the Commonwealth of Virginia("SNAP")and the Contract Creating the State Non-Arbitrage Program Pool (the "Contract"), and the Board hereby determines to authorize the County Treasurer to use SNAP in connection with the investment of the proceeds of the 2021B Bond. The Board acknowledges the Treasury Board of the Commonwealth of Virginia is not, and shall not be, in any way liable to the County in connection with SNAP, except as otherwise provided in the Contract. 18. Other Actions. All other actions of officers of the County in conformity with the purposes and intent of this Resolution and in furtherance of the issuance and sale of the Bonds,the financing of the 2021 Projects and the refinancing of the 2018 Projects are ratified, approved and confirmed. The officers of the County are authorized and directed to execute and deliver all certificates and other instruments and to take all such further action as may be considered necessary or desirable in connection with the issuance, sale and delivery of the Bonds, the financing of the 2021 Projects and the refinancing of the 2018 Projects. 19. Repeal of Conflicting Resolutions. All resolutions or parts of resolutions in conflict herewith are repealed. 20. Effective Date. This Resolution shall take effect immediately. 7 Exhibit A - Form of Bond Interest on this bond is intended by the issuer thereof to be included in gross income for federal income tax purposes. REGISTERED REGISTERED R[A/B]-1 , 2021 UNITED STATES OF AMERICA COMMONWEALTH OF VIRGINIA PITTSYLVANIA COUNTY Taxable Solid Waste System Revenue and Refunding Bond Series 2021[A/B] ([Landfill Projects/Convenience Center Project]) Pittsylvania County,Virginia(the"County"),a political subdivision of the Commonwealth of Virginia, for value received, acknowledges itself in debt and promises to pay to the Virginia Resources Authority, or its registered assigns or legal representative ("VRA"), solely from the sources hereinafter described and pledged to the payment of this bond the principal sum of DOLLARS ($ ). Principal of this bond shall be payable in annual installments in the amounts and on the dates set forth in Schedule I attached hereto. Interest on this bond shall be payable on each April 1 and October 1, commencing 20_, computed on the basis of a 360-day year of twelve 30-day months at the rates set forth in Schedule I. If any installment of principal of or interest on this bond is not paid to the registered owner of this bond within five days after its due date,the County shall pay to VRA a late payment charge in an amount equal to five percent (5.0%)of the overdue installment. Subject to the provisions of the Local Bond Sale and Financing Agreement dated as of September 17, 2021 (the "Financing Agreement"), between VRA and the County, so long as this bond is held by or for the account of VRA or its registered assigns or legal representative, interest is payable by (i) check or draft mailed to the registered owner of this bond at the address that appears on the 15th day of the month preceding each interest payment date on the registration books kept by the County Treasurer, who has been appointed registrar and paying agent, or any successor bank or trust company (the "Registrar")or(ii)wire transfer pursuant to the most recent wire instructions received by the Registrar from such registered owner. Principal of and premium, if any,and interest on this bond shall be payable in lawful money of the United States of America. In case any payment date on this bond shall not be a Business Day (as defined below), then payment of principal, premium, if any, and interest need not be made on such date, but may be made on the next succeeding Business Day, and, if made on such next succeeding Business Day, no additional interest shall accrue for the period after such payment date. "Business Day"means any Monday,Tuesday, Wednesday,Thursday or Friday on which commercial banking institutions generally are open for business in New York and Virginia. A-1 This bond has been authorized by a resolution adopted by the Board of Supervisors of the County (the "Board") on August 17, 2021 (the "Resolution"), and is issued pursuant to the Constitution and statutes of the Commonwealth of Virginia, including the Public Finance Act of 1991, and the Financing Agreement. Proceeds of this bond will be used to provide funds to (a) finance various capital projects related to the County's solid waste system (the "System"), including(without limitation) [opening a new cell in the County's landfill and acquiring equipment for use at the landfill] [constructing and equipping three new convenience centers and improving an existing convenience center], (b) refund a portion of the outstanding principal installments of the $1,803,802 Lease Revenue Bond (County Projects), Series 2018A (Federally Tax-Exempt), issued by the Industrial Development Authority of Pittsylvania County, Virginia, for the benefit of the County, and (c)pay the related costs of issuance and refunding. Subject to the County's right to apply Revenues (as defined in the Financing Agreement) to the payment of Operation and Maintenance Expenses(as defined in the Financing Agreement), Revenues are irrevocably pledged for the payment of principal of and premium, if any,and interest on this bond and the payment and performance of the County's obligations under the Financing Agreement. The pledge of Revenues securing this bond is on a parity with the pledge of Revenues securing the County $[ ] Taxable Solid Waste System Revenue and Refunding Bond, Series 2021[A/B] ([Landfill Projects/Convenience Center Project]) (the "Parity Bond"). Additional bonds secured on a parity as to the pledge of the Revenues with this bond and the Parity Bond may be issued on terms provided in the Financing Agreement and the financing agreement relating to the Parity Bond. The Financing Agreement also contains a non-binding undertaking of the Board to consider annual appropriations in amounts sufficient to pay amounts due under this bond or the Financing Agreement to the extent Revenues are insufficient therefor. If any failure of the County to pay all or any portion of any required payment of the principal of or premium, if any, or interest on this bond results in a withdrawal from or drawing on any VRA Reserve(as defined in the Financing Agreement),the interest rates applicable to this bond shall be increased to interest rates sufficient to reimburse the VRA Reserve for any foregone investment earnings on the funds withdrawn therefrom and pay any interest, fees or penalties assessed as a result of the withdrawal from or the drawing on the VRA Reserve. The increment of interest payable pursuant to the increase in rates shall be referred to as "Supplemental Interest." The term "interest"as used in this bond shall include Supplemental Interest, when and if payable. The County's obligation to pay Supplemental Interest shall commence on the date of the withdrawal or drawing of funds from the VRA Reserve occasioned by the County's failure to pay a required payment or portion thereof as described above (the "Supplemental Interest Commencement Date"). The County's obligation to pay Supplemental Interest shall terminate on the date on which the County makes all payments required but outstanding since the date of the initial failure to pay (the "Supplemental Interest Termination Date"). From the Supplemental Interest Commencement Date to the Supplemental Interest Termination Date, Supplemental Interest shall be due and payable on the regularly scheduled interest payment dates provided for in this bond. As soon as reasonably possible after the Supplemental Interest Commencement Date and before the next regularly scheduled interest payment date provided for in this bond,VRA shall deliver to the County a certificate as to the increase in interest rates and the amount of A-2 Supplemental Interest. The certificate shall set forth in reasonable detail the basis for the increase in interest rates and the manner of calculation of the increase and the amount of Supplemental Interest. Such certificate shall be conclusive(absent manifest error) as to the interest rate increase and amount of Supplemental Interest set forth therein. In determining the interest rate increase and the amount of Supplemental Interest, VRA may use any reasonable averaging and attribution methods. This bond may be redeemed, prepaid or refunded at the option of the County upon the terms set forth in the Financing Agreement and the Resolution. This bond is issuable as a fully registered bond. Upon surrender of this bond at the Registrar's office, together with an assignment duly executed by the registered owner or such owner's duly authorized attorney or legal representative in such form as shall be satisfactory to the Registrar, the County shall execute, and the Registrar shall authenticate and deliver in exchange, a new bond or bonds in the manner and subject to the limitations and conditions provided in the Resolution,having an equal aggregate principal amount, in authorized denominations,of the same series, form and maturity,bearing interest at the same rates and in the same manner,and registered in such names as requested by the then registered owner of this bond or such owner's duly authorized attorney or legal representative. Any such exchange shall be at the County's expense, except that the Registrar may charge the person requesting such exchange the amount of any tax or other governmental charge required to be paid with respect to it. The Registrar shall treat the registered owner of this bond as the person exclusively entitled to payment of principal hereof and premium, if any, and interest hereon and the exercise of all other rights and powers of the owner hereof, except that regular installment payments of principal and interest shall be made to the person shown as the owner on the registration books as of the 15th day of the month preceding each payment date. All acts, conditions and things required by the Constitution and statutes of the Commonwealth of Virginia to happen, exist or be performed precedent to and in connection with the issuance of this bond have happened, exist and have been performed. A-3 IN WITNESS WHEREOF, the Board of Supervisors of Pittsylvania County, Virginia, has caused this bond to be signed by its [Vice] Chairman and the County's seal to be affixed hereto and attested by the Clerk of the Board of Supervisors,and this bond to be dated the date first above written. (SEAL) q/451 Gus [Vice] Chairman, Board of Supervisors of Pittsylvania County, Virginia ATTEST: erk, o of Supervisors of Pittsylvania County, Virginia 1 Tir ''- A-4 ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sell(s), assign(s) and transfer(s) unto (please print or typewrite name and address including postal zip code of Transferee) PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF TRANSFEREE the within bond and all rights thereunder, hereby irrevocably constituting and appointing Attorney, to transfer said bond on the books kept for the registration thereof, with full power of substitution in the premises. Dated: Signature Guaranteed NOTICE: Signature(s)must be guaranteed (Signature of Registered Owner) by an Eligible Guarantor Institution such as a Commercial Bank, Trust Company, NOTICE: The signature above must Securities Broker/Dealer, Credit Union or correspond with the name of the Savings Association who is a member of a registered owner as it appears on the medallion program approved by The Securities front of this bond in every particular, Transfer Association, Inc. without alteration or enlargement or any change whatsoever. A-5 SCHEDULE I TO PITTSYLVANIA COUNTY,VIRGINIA TAXABLE SOLID WASTE SYSTEM REVENUE AND REFUNDING BOND SERIES 2021[A/B] ([LANDFILL PROJECTS/CONVENIENCE CENTER PROJECT]) Principal Principal Principal Installment Installment Installment Interest Number Amount Due Date Rate [to be completed after pricing of VRA Bonds] A-6 036841.0000016 EMF_US 86054097v5