Ord 2021-056/authorizing the issuance of $34,530,000 Combination Tax and Revenue Certificates of Obligation Series 2021A

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Section 4.02. Redemption of Certificates Prior to Maturity. (a) Optional Redemption. (i) The City reserves the option to redeem the Certificates maturing on and after August 15, 2031, in whole or from time to time in part, before their scheduled maturity date, on August 15, 2030, or on any date thereafter (such redemption date or dates to be fixed by the City) at a price equal to the principal amount of the Certificates called for redemption plus accrued interest from the most recent interest payment date on which interest has been paid or duly provided for to the redemption date. (ii) The City, at least forty-five (45) days before the redemption date (unless a shorter period shall be satisfactory to the Paying Agent/Registrar), shall notify the Paying Agent/Registrar of such redemption date and of the principal amount of Certificates to be redeemed. (b) Mandatory Sinking Fund Redemption (i) The Certificates scheduled to mature on August 15, 2040 (the "Term Certificates") are subject to scheduled mandatory redemption by the Paying Agent/Registrar (or DTC or a successor securities depository, as applicable, if the Certificates are in Book-Entry form) by lot, or by any other customary method that results in a random selection, at a price equal to the principal amount thereof, plus accrued interest to the redemption date, out of moneys available for such purpose in the Interest and Sinking Fund, in the dates and in the respective principal amounts, set forth in the following schedule: Term Certificate Maturity: August 15, 2040 Mandatory Redemption DatePrincipal Amount August 15, 2039 $2,245,000 August 15, 2040 2,295,000 (maturity) (ii) The principal amount of Term Certificates of a stated maturity required to be redeemed on any mandatory redemption date pursuant to the operation of the mandatory sinking fund redemption provisions hereof shall be reduced, at the option of the City, by the principal amount of any Term Certificates of the same maturity which, at least 50 days prior to a mandatory redemption date (1) shall have been acquired by the City and delivered to the Paying Agent/Registrar for cancellation, (2) shall have been purchased and canceled by the Paying Agent/Registrar at the request of the City, or (3) shall have been redeemed pursuant to the optional redemption provisions and not theretofore credited against a mandatory sinking fund redemption requirements. (iii) The City reserves the right to purchase Term Certificates, in lieu of redemption, at a price not exceeding the principal amount thereof, plus accrued interest, with moneys on deposit in the Interest and Sinking Fund which are available for 19 San Marcos CTRCO 2021A: Ordinance