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<br />January I, 1998, or any interest payment date thereafter, at the par value thereof plus accrued interest to
<br />the date fixed for redemption. If less than all of the Bonds are to be redeemed by the City, the City shall
<br />determine the maturity or maturities and the amounts thereof to be redeemed and if less than all of a
<br />maturity is to be redeemed, the Paying Agent/Registrar shall determine by lot the Bonds, or portions
<br />thereof, within such maturity to be redeemed. Not less than 30 days prior to a redemption date for the
<br />Bonds, the City shall cause a notice of redemption to be sent by United States mail, first class, postage
<br />prepaid, to each Holder of a Bond to be redeemed, in whole or in part, at the address of the Holder
<br />appearing on the registration books of the Paying Agent/Registrar at the close of business on the business
<br />day next preceding the date of mailing such notice.
<br />
<br />Payment Record: The City has never defaulted.
<br />
<br />Le2ality: Attorney General of the State of Texas, and
<br />Hutchison Price Bo Ie &: Brooks Bond Counsel Austin Texas.
<br />(Opinion Printed on the Bonds; See Le2al Opinions.
<br />
<br />Delivery: Anticipated on or about March 22, 1988.
<br />
<br />Payin2 A2ent/Re2istrar . . . The initial Paying Agent/Registrar will be MTrust Corp, N. A., Austin, Texas.
<br />In the Ordinance the City retains the right to replace the Paying Agent/Registrar. The City covenants to
<br />maintain and provide a Paying Agent/Registrar at all times while the Bonds are outstanding and any
<br />successor Paying Agent/Registrar shaH be a bank, trust company, financial institution, or other entity
<br />duly qualified and legally authorized to serve as and perform the duties and services of Paying
<br />Agent/Registrar for the Bonds. Upon any change in the Paying Agent/Registrar for the Bonds, the City
<br />agrees to promptly cause a written notice thereof to be sent to each registered Owner of the Bonds by
<br />United States mail, first class, postage prepaid, which notice shaH also give the address of the new Paying
<br />A gent/Registrar.
<br />
<br />Record Date for Interest Payment. . . The record date ("Record Date") for the interest payable on any
<br />interest payment date means the 15th day of the preceding month.
<br />
<br />In the event of a non-payment of interest on a scheduled payment date, and for 30 days thereafter, a new
<br />record date for such interest payment (a "Special Record Date") will be established by the Paying
<br />Agent/Registrar, if and when funds 'for the payment of such interest have been received from the City.
<br />Notice of the Special Record Date and of the scheduled payment date of the past due interest (the
<br />"Special Payment Date" which shall be 15 days after the Special Record Date) shall be sent at least five
<br />business days prior to the Special Record Date by United States mail, first class, postage prepaid, to the
<br />address of each Holder of a Bond appearing on the books of the Paying Agent/Registrar at the dose of
<br />business on the last business day next preceding the date of mailing of such notice.
<br />
<br />Transfer Exchan e and Re istration. . . The Bonds may be transferred and exchanged on the registration
<br />books of the Paying Agent Registrar only upon presentation and surrender thereof to the Paying
<br />Agent/Registrar, and such transfer or exchange shall be without expense or service charge to the Holder,
<br />except for any tax or other governmental charges required to be paid with respect to such registration,
<br />exchange and transfer. A Bond may be assigned by the execution of an assignment form on the Bond or by
<br />other instrument of transfer and assignment acceptable to the Paying Agent/Registrar. A new Bond or
<br />Bonds will be delivered by the Paying Agent/Registrar, ih lieu of the Bond being transferred or exchanged,
<br />at the principal corporate office of the Paying Agent/Registrar, or sent by United States mail, first class,
<br />postage prepaid, to the new registered Holder or his designee. To the extent possible, new Bonds issued in
<br />an exchange or transfer of Bonds will be delivered to the registered Holder or assignee of the Holder in
<br />not more than three business days after the receipt of the Bonds to be cancelled, and the written
<br />instrument of transfer or request for exchange duly executed by the Holder or his duly authorized agent,
<br />in form satisfactory to the Paying Agent/Registrar. New Bonds registered and delivered in an exchange
<br />or transfer shall be in any integral multiple of $.5,000 for anyone maturity and for a like aggregate
<br />principal amount as the Bond or Bonds surrendered for exchange or transfer.
<br />
<br />Limitation on Transfer of Bonds Called for Redemption... Neither the City nor the Paying
<br />Agent/Registrar shall be required to transfer or exchange to an assignee of the Holder of the Bonds any
<br />Bond called for redemption, in whole or in part, within ~.5 days of the date fixed for redemption; provided,
<br />however, such limitation of transfer shall not be appHcable to an exchange by the Bond Holder of an
<br />unredeemed balance of a Bond caUed for redemption in part.
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