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conversion and exchange or replacement of any Bond or portion thereof, and the Paying Agent/Registrar
<br />shall provide for the printing, execution, and delivery of the substitute Bonds in the manner prescribed
<br />herein, and said Bonds shall be of customary type and composition and be printed on paper with lithographed
<br />or steel engraved borders of customary weight and strength. Pursuant to Tex. Gov't Ann. ch. 1201, as
<br />amended, and particularly subchapter D thereof, the duty of conversion and exchange or replacement of
<br />Bonds as aforesaid is hereby imposed upon the Paying Agent/Registrar, and, upon the execution of the above
<br />Paying Agent/Registrar's Authentication Certificate, the converted and exchanged or replaced Bonds shall
<br />be valid, incontestable, and enforceable in the same manner and with the same effect as the Initial Bond
<br />which was originally delivered pursuant to this Ordinance, approved by the Attorney General, and registered
<br />by the Comptroller of Public Accounts.
<br />
<br /> (c) Bonds issued in conversion and exchange or replacement of any other Bond or portion
<br />thereof, (i) shall be issued in fully registered form, without interest coupons, with the principal of and interest
<br />on such Bonds to be payable only to the registered owners thereof, (ii) may be redeemed prior to their
<br />scheduled maturities, (iii) may be transferred and assigned, (iv) may be converted and exchanged for other
<br />Bonds, (v) shall have the characteristics, (vi) shall be signed and sealed, and (vii) shall be payable as to
<br />principal and interest, all as provided, and in the manner required or indicated, in the Form of Bonds set forth
<br />in this Ordinance.
<br />
<br />Section 3.08. Replacement Bonds.
<br />
<br /> (a) Upon the presentation and surrender to the Paying Agent/Registrar, at the Designated
<br />Payment/Transfer Office, of a mutilated Bond, the Paying Agent/Registrar shall authenticate and deliver in
<br />exchange therefor a replacement Bond of like tenor and principal amount, bearing a number not
<br />contemporaneously outstanding. The City or the Paying Agent/Registrar may require the Owner of such
<br />Bond to pay a sum sufficient to cover any tax or other governmental charge that is authorized to be imposed
<br />in connection therewith and any other expenses connected herewith.
<br />
<br /> (b) In the event that any Bond is lost, apparently destroyed or wrongfully taken, the Paying
<br />Agent/Registrar, pursuant to the applicable laws of the State of Texas and in the absence of notice or
<br />knowledge that such Bond has been acquired by a bona fide purchaser, shall authenticate and deliver a
<br />replacement Bond of like tenor and principal amount, bearing a number not contemporaneously outstanding,
<br />provided that the Owner first:
<br />
<br /> (i) furnishes to the Paying Agent/Registrar satisfactory evidence of his or her ownership
<br />of and the circumstances of the loss, destruction or theft of such Bond;
<br />
<br /> (ii) furnishes such security or indemnity as may be required by the Paying
<br />Agent/Registrar and the City to save them harmless;
<br />
<br /> (iii) pays all expenses and charges in connection therewith, including, but not limited
<br />to, printing costs, legal fees, fees of the Paying Agent/Registrar and any tax or other governmental
<br />charge that is authorized to be imposed; and
<br />
<br /> (iv) satisfies any other reasonable requirements imposed by the City and the Paying
<br />Agent/Registrar.
<br />
<br /> (c) If, after the delivery of such replacement Bond, a bona fide purchaser of the original Bond
<br />in lieu of which such replacement Bond was issued presents for payment such original Bond, the City and
<br />the Paying Agent/Registrar shall be entitled to recover such replacement Bond from the person to whom it
<br />was delivered or any person taking therefrom, except a bona fide purchaser, and shall be entitled to recover
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