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<br />prior to the appropriate date of payment, by United States Mail first
<br />class postage prepaid, to the registered owner hereof ~n the
<br />app~icabl~ dates specified, at the address appearing on the
<br />RegIstratIon Books, or by such other method acceptable to the Paying
<br />Agent/Registrar requested by the registered owner at the Holder's risk
<br />and expense.
<br />, THI~ Certificate is one of the series designated in its title,
<br />~ssue? ,In ~~e aggregate principal amount of $1,500,000 (the
<br />CertIfIcates) for the purpose of paying contractual obligations for
<br />additions, extensions and improvements to the City's sewer system in
<br />accordance with the Constitution and laws of the State of Texas 'and
<br />particularly Article 2368a.l of the Revised Civil Statutes of T~xas,
<br />and pursuant to an order by the City Council authorizing the issuance
<br />sale and delivery of the Certificates (the "Ordinance"). '
<br /> THE CERTIFICATES maturing on and after January 1, 1995, may be
<br />redeemed prior to their Stated M~turities, at the option of the City,
<br />on January 1, 1994, or on any Interest payment date thereafter, in
<br />whole or in part, in pr incipal amounts of $5,000 or any integral
<br />multiple thereof (and if within a Stated Maturity at random and by lot
<br />by the p~ying Agent/~egistrar) at the redemption price of par,
<br />together wIth accrued Interest to the date of redemption, and upon 30
<br />days prior written notice being given at the direction of the City, and
<br />subject to the terms and provisions relating thereto contained in the
<br />Ordinance. If this Certificate be of a denomination in excess of
<br />$5,000 portions of the principal sum hereof in installments of $5,000
<br />or any integral multiple thereof may be redeemed, and, if less than all
<br />of the principal sum hereof is to be redeemed, upon the surrender of
<br />this Certificate to the Paying Agent/Registrar at its principal office
<br />there shall be issued to the registered owner hereof, without charge
<br />therefor, for the then unredeemed balance of the principal sum hereof,
<br />a new Certificate or Certificates of like maturity and interest rate
<br />in any authorized denominations provided by the Ordinance. If this
<br />Certificate (or any portion of the principal sum hereof) shall have
<br />been duly called for redemption and notice of such redemption duly
<br />given, then upon such redemption date this Certificate (or the portion
<br />of the principal sum hereof to be redeemed) shall become due and
<br />payable, and, if moneys for the payment of the redemption price and
<br />interest on the principal amount to be redeemed to the date of
<br />redemption are held by the Paying Agent/Registrar for the purpose of
<br />such payment, interest shall cease to accrue and be payable from and
<br />after the redemption date on the principal amount hereof so redeemed.
<br />Neither the City nor the Paying Agent/Registrar shall be required to
<br />transfer or exchange this Certificate if selected for redemption, in
<br />whole or in part, when such redemption is scheduled to occur within 45
<br />calendar days; provided, however, that such limi tat ion of transfer
<br />shall not be applicable to an exchange by the Holder of the unredeemed
<br />balance of a Certificate called in part for redemption.
<br /> THE CERTIFICATES, together with Outstanding Bonds of the City,
<br />are secured by and payable from a first lien on and pledge of the Net
<br />Revenues of the City's Waterworks and Sewer System, as more fully set
<br />forth in the Ordinance. The holder hereof shall never have the right
<br />to demand payment of this obligation out of any funds raised or to be
<br />raised by taxation.
<br /> AS PROVIDED in the Ordinance and subject to certain limitations
<br />set forth therein, this Certificate is transferable on the
<br />Registration Books of the City, upon surrender of this Certificate ~or
<br />transfer at the principal corporate office of the PaYIng
<br />Agent/Registrar, duly endorsed by, or ,accompanied by a writ~en
<br />instrument of transfer in form satIsfactory to the PaYIng
<br />Agent/Registrar duly executed by, the registered owner hereof or his
<br />attorney duly authorized in writing, and thereupon one or more new
<br />fully registered Certificates of the same Stated Maturity, of
<br />authorized denominations, bearing the same rate of interest, and for
<br />the same aggregate principal amount will be issued to the designated
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