Ord 2018-017/general obligation Bonds; levying an ad valorem tax in support of the bonds; approving a paying agent/registrar agreement, an official Statement, and a purchase agreement; establishing procedures For selling and delivery of one or more series

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Chapter 1208,Texas Government Code,applies to the issuance of the Bonds and the pledge of the ad valorem taxes granted by the City under this Section, and is therefore valid,effective,and perfected. If Texas law is amended at any time while the Bonds are outstanding and unpaid such that the pledge of the ad valorem taxes granted by the City under this Section is to be subject to the filing requirements of Chapter 9,Business&Commerce Code,then in order to preserve to the Owners of the Bonds the perfection of the security interest in said pledge,the City agrees to take such measures as it determines are reasonable and necessary under Texas law to comply with the applicable provisions of Chapter 9, Business & Commerce Code and enable a filing to perfect the security interest in said pledge to occur. Section 8. ESTABLISHMENT OF PROJECT FUND. (a) Project Fund. The Project Fund is hereby created and shall be established and maintained by the City at an official depository bank of the City. Proceeds from the sale of the Bonds minus any amounts deposited into the Interest and Sinking Fund and any Escrow Fund, shall be deposited in the Project Fund. (b) Investment of Funds. The City hereby covenants that the proceeds of the sale of the Bonds will be used as soon as practicable for the purposes for which the Bonds are issued. Obligations purchased as an investment of money in any fund shall be deemed to be a part of such fund. Any money in any fund created by this Ordinance may be invested in Permitted Investments as permitted by the Public Funds Investment Act, as amended and the City's Investment Policy. (c) Security for Funds. All funds created by this Ordinance shall be secured in the manner and to the fullest extent required by law for the security of funds of the City. (d) Maintenance of Funds. Any funds created pursuant to this Ordinance,other than the Escrow Fund,may be created as separate funds or accounts or as subaccounts of the City's General Fund held by the City's depository,and,as such,not held in separate bank accounts, such treatment shall not constitute a commingling of the monies in such funds or of such funds and the City shall keep full and complete records indicating the monies and investments credited to each such fund. (e) Interest Earnings. Interest earnings derived from the investment of proceeds from the sale of the Bonds shall be used along with the Bond proceeds for the purpose for which the Bonds are issued as set forth in Section 3 hereof or to pay principal or interest payments on the Bonds; provided that after completion of such purpose,if any of such interest earnings remain on hand,such interest earnings shall be deposited in the Interest and Sinking Fund. It is further provided,however, that any interest earnings on bond proceeds which are required to be rebated to the United States of America pursuant to Section 12 hereof in order to prevent the Bonds from being arbitrage bonds shall be so rebated and not considered as interest earnings for the purposes of this Section. Section 9. DEFEASANCE OF BONDS(a)Any Bond and the interest thereon shall be deemed to be paid,retired and no longer outstanding(a"Defeased Bond")within the meaning of this Ordinance,except to the extent provided in subsections(c)and(e)of this Section,when payment of the principal of such Bond, plus interest thereon to the due date or dates(whether such due date or dates be by reason of maturity, upon redemption, or otherwise) either (i) shall have been made or 20 s.u.Marco:;wuzmS o,a'woaoo