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Notwithstanding the requirements of Section 6(a), if Net Revenues are actually on deposit or budgeted for deposit in the Interest and Sinking Fund in advance of the time when ad valorem taxes are scheduled to be levied for any year, then the amount of taxes which otherwise would have been required to be levied pursuant to Section 6(a) may be reduced to the extent and by the amount of the Surplus Revenues then on deposit in the Interest and Sinking Fund or budgeted for deposit therein. The Mayor and city Clerk are hereby ordered to do any and all things necessary to accomplish the transfer of monies to the Interest and Sinking Fund of this issue in ample time to pay such items of principal and interest. (c) Chapter 1208, Texas Government Code, applies tot ? rysuance of the Bond and the pledge of the ad valorem taxes granted by the City under this Section, are. therefore valid, effective, and perfected. If Texas law is amended at any time while the Bond i? ?u?? ,ding and unpaid such that the pledge of the ad valorem taxes granted by the City under th ? Section '?? re subject to the filing requirements of Chapter 9, Business & Commerce Code, then ir. t?der to prE , ve to the Owner of the Bond the perfection of the security interest in said r'??ae, ?'itv ? frees to take such measures as it determines are reasonable and necessary unde? i ex? , law to ?, ? ?_l?,ly with the applicable provisions of Chapter 9, Business & Comme? ,P Code ar ? eY dble a ? ding to perfect the security interest in said pledge to occur. Section 7. ESTABLISHMENT OF ESCRt? FUND. (a) Escrow Fund. The proceeds of the Bond, together with any cash contribu?? ^ ?n an al? ??t ?lecessary to refund the Refunded Obligations shall be deposited in th , ,rove una ?, ted an• governed by the terms of the Escrow Agreement dated September 1, 2008 a?. '? 'd hereto , Exhibit "A." (b) Interest Earnings. InterPr' ??rnings ,;vP?' ?romthe investment ofproceeds fromthe sale of the Bond shall be used along v? .ch the end pro?Ceds for the purpose for which the Bond is issued as set forth in Section ? ?l?reof c +o ? ?y ?, ?; ?al or interest payments on the Bond; provided that after completion ? such purpose, if any c ? each interest earnings remain on hand, such interest earnings shall be ??, ??ted in the Intel - .? Sinking Fund. It is further provided, however, that any interest earnir ,s on b? ??roceeds which are required to be rebated to the United States of America pursuant to St ?tion 11 h, f in order to prevent the Bond from being arbitrage bonds shall be so rebated and not considered u. ?P,? Est earnings for the purposes of this Section. Section 8. DEFEAS?NCE OF BOND. (a) The 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 caused to be made in accordance with the terms thereof (including the giving of any required notice of redemption) or (ii) shall have been provided for on or before such due date by irrevocably depositing with or making available to the Paying Agent/Registrar or a commercial bank or trust company for such payment (1) lawful money of the United States of America sufficient to make such payment, (2) Defeasance Securities, certified by an independent public accounting firm of national SAN MARCOSI CO Rfdg Bonds2008:Ordinance 1