Ord 2022-053/authorizing the issuance and sale of an amount not to exceed $1,200,000.00 of Combination Tax and Surplus Revenue Certificates of Obligation, Series 2022A, for (1) planning, acquisition, design and

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Construction Fund after completing the improvements described herein and upon the completion of the final accounting as described in Section 16(c)hereof, shall be transferred to the Interest and Sinking Fund to (1) redeem, in inverse order of maturity, the Certificates owned by TWDB; (2) pay capitalized interest, if any, or principal on Certificates owned by TWDB; or, (3) pay for eligible project costs as authorized by the Executive Administrator. The foregoing notwithstand- ing, it is further provided, however, that any interest earnings on monies on deposit in the Construction Fund which are required to be rebated to the United States of America pursuant to Section 14 hereof in order to prevent the Certificates from being arbitrage Certificates shall be transferred to the "Rebate Fund" hereinafter established and shall not be considered as interest earnings for purposes of this subsection. (d) Upon the delivery of the purchase price for the Certificates of Obligation, the proceeds shall be deposited into the Escrow Account and disbursed in accordance with the terms of the "Escrow Agreement" as further described in Section 19 hereof. (e) The Construction Fund created by this Ordinance shall be secured in the manner and to the fullest extent permitted or required by law for the security of public funds, including the Public Funds Collateral Act, Chapter 2257, Government Code, as amended, as applicable, and the Construction Fund shall be used only for the purposes and in the manner permitted or required by this Ordinance Section 12. INVESTMENTS. Money in every Fund created by this Ordinance may be invested at the option of the Issuer, and if the Issuer exercises such option, investments must be made as provided in the Public Funds Investment Act, Chapter 2256, Texas Government Code, for the investment of funds of the entities described therein; provided that all such deposits and investments shall be made in such manner that the money required to be expended from any Fund will be available at the proper time or times when expected to be needed. Interest and income derived from such deposits and investments shall be credited to the Fund from which the deposit or investment was made and shall be used only for the purpose or purposes for which such Fund is required or permitted to be used, except for interest and income derived from deposits or investments in the Interest and Sinking Fund. Such investments shall be sold promptly when necessary to prevent any default in connection with any Certificates. Section 13. DAMAGED, MUTILATED, LOST, STOLEN, OR DESTROYED CERTIFICATES. (a) Replacement Certificates. That in the event any outstanding Certificate is damaged, mutilated, lost, stolen, or destroyed, the Paying Agent/Registrar shall cause to be printed, executed, and delivered, a new certificate of the same principal amount, maturity, and interest rate, as the damaged, mutilated, lost, stolen, or destroyed Certificate, in replacement for such Certificate in the manner hereinafter provided. (b) Application for Replacement Certificates. That application for replacement of damaged, mutilated, lost, stolen, or destroyed Certificates shall be made by the registered owner thereof to the Paying Agent/Registrar. In every case of loss,theft, or destruction of a Certificate, the registered owner applying for a replacement certificate shall furnish to the Issuer and to the Paying Agent/Registrar such security or indemnity as may be required by them to save each of them harmless from any loss or damage with respect thereto. Also, in every case of loss,theft, or destruction of a Certificate, the registered owner shall furnish to the Issuer and to the Paying Agent/Registrar evidence to their satisfaction of the loss, theft, or destruction of such Certificate, 16 SAN MARCOS(TWDB)CTRCO 2022:Ordinance