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(d) Upon the delivery of the purchase price for the Certificates of Obligation, the
<br /> proceeds shall be deposited into the Escrow Account and disbursed in accordance with the terms
<br /> of the "Escrow Agreement" as further described in Section 19 hereof.
<br /> (e) The Construction Fund created by this Ordinance shall be secured in the manner and
<br /> to the fullest extent permitted or required by law-for the security of public funds, including the
<br /> Public Funds Collateral Act, Chapter 2257, Government Code, as amended, as applicable, and the
<br /> Construction Fund shall be used only for the purposes and in the manner permitted or required by
<br /> this Ordinance
<br /> Section 12. INVESTMENTS. Money in every Fund created by this Ordinance may
<br /> be invested at the option of the Issuer, and if the Issuer exercises such option, investments must be
<br /> made as provided in the Public Funds Investment Act, Chapter 2256, Texas Government Code,
<br /> for the investment of funds of the entities described therein; provided that all such deposits and
<br /> investments shall be made in such manner that the money required to be expended from any Fund
<br /> will be available at the proper time or times when expected to be needed. Interest and income
<br /> derived from such deposits and investments shall be credited to the Fund from which the deposit
<br /> or investment was made and shall be used only for the purpose or purposes for which such Fund
<br /> is required or permitted to be used, except for interest and income derived from deposits or
<br /> investments in the Interest and Sinking Fund. Such investments shall be sold promptly when
<br /> necessary to prevent any default in connection with any Certificates.
<br /> Section 13. DAMAGED, MUTILATED, LOST, STOLEN, OR DESTROYED
<br /> CERTIFICATES. (a) Replacement Certificates. That in the event any outstanding Certificate
<br /> is damaged, mutilated, lost, stolen, or destroyed, the Paying Agent/Registrar shall cause to be
<br /> printed, executed, and delivered, a new certificate of the same principal amount, maturity, and
<br /> interest rate, as the damaged, mutilated, lost, stolen, or destroyed Certificate, in replacement for
<br /> such Certificate in the manner hereinafter provided.
<br /> (b) Application for Replacement Certificates. That application for replacement of
<br /> damaged, mutilated, lost, stolen, or destroyed Certificates shall be made by the registered owner
<br /> thereof to the Paying Agent/Registrar. In every case of loss,theft, or destruction of a Certificate,
<br /> the registered owner applying for a replacement certificate shall furnish to the Issuer and to the
<br /> Paying Agent/Registrar such security or indemnity as may be required by them to save each of
<br /> them harmless from any loss or damage with respect thereto. Also, in every case of loss,theft,or
<br /> destruction of a Certificate, the registered owner shall furnish to the Issuer and to the Paying
<br /> Agent/Registrar evidence to their satisfaction of the loss, theft, or destruction of such Certificate,
<br /> as the case may be. In every case of damage or mutilation of a Certificate, the registered owner
<br /> shall surrender to the Paying Agent/Registrar for cancellation the Certificate so damaged or
<br /> mutilated.
<br /> (c) No Default Occurred. That notwithstanding the foregoing provisions of this Section,
<br /> in the event any such Certificate shall have matured, and no default has occurred which is then
<br /> continuing in the payment of the principal of, redemption premium, if any, or interest on, if any,
<br /> the Certificate,the Issuer may authorize the payment of the same(without surrender thereof except
<br /> in the case of a damaged or mutilated Certificate) instead of issuing a replacement certificate,
<br /> provided security or indemnity is furnished as above provided in this Section.
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<br /> SAN MARCOS(TWDB)CTRCO 2023&2023A:Ordinance($1,120,000)
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