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<br />Section 4.05. Cancellation of Bonds. All Bonds surrendered for payment, redemption, transfer,
<br />exchange, or replacement, if surrendered to the Bank, shall be promptly cancelled by it and, if
<br />surrendered to the Issuer, shall be delivered to the Bank and, if not already cancelled, shall be promptly
<br />cancelled by the Bank. The Issuer may at any time deliver to the Bank for cancellation any Bonds
<br />previously certified or registered and delivered which the Issuer may have acquired in any manner
<br />whatsoever, and all Bonds so delivered shall be promptly cancelled by the Bank. All cancelled Bonds
<br />held by the Bank shall be disposed of as directed by the Issuer.
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<br />Section 4.06. Mutilated, Destroyed, Lost, or Stolen Bonds. (a) Subject to the provisions of this
<br />Section 4.06, the Issuer hereby instructs the Bank to deliver fully registered Bonds in exchange for or
<br />in lieu of mutilated, destroyed, lost or stolen Bonds as long as the same does not result in an
<br />ovenssuance.
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<br />(b) If (i) any mutilated Bond is surrendered to the Bank, or the Issuer and the Bank receive
<br />evidence to their satisfaction of the destruction, loss, or theft of any Bond, and (ii) there is de livered to
<br />the Issuer and the Bank such security or indemnity as may be required by the Bank to save and hold each
<br />of them harmless, then, in the absence of notice to the Issuer or the Bank that such Bond has been
<br />acquired by a bona fide purchaser, the Issuer shall execute and upon its request the Bank shall register
<br />and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost, or stolen Bond, a new Bond
<br />of the same. stated maturity and of like tenor and principal amount bearing a number not
<br />contemporaneously outstanding.
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<br />(c) Every new Bond issued pursuant to this Section in lieu of any mutilated, destroyed, lost,
<br />or stolen Bond shall constitute a replacement of the prior obligation of the Issuer, whether or not the
<br />mutilated, destroyed, lost, or stolen Bond shall be at any time enforceable by anyone, and shall be
<br />entitled to all the benefits ofthe Bond Resolution equally and ratably with all other outstanding Bonds.
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<br />(d) Upon the satisfaction of the Bank and the Issuer that a Bond has been mutilated,
<br />destroyed, lost or stolen, and upon receipt by the Bank and the Issuer of such indemnity or security as
<br />they may require, the Bank shall cancel the Bond number on the Bond registered with a notation in the
<br />Register that said Bond has been mutilated, destroyed"lost or stolen; and a new Bond shall be issued of
<br />the same series and of like tenor and principal amount bearing a number, according to the Register not
<br />contemporaneously outstanding.
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<br />(e) The Bank may charge the Owner the Bank's fees and expenses in connection with issuing
<br />a new Bond in lieu of or exchange for a mutilated, destroyed, lost or stolen Bond.
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<br />(f) The Issuer hereby accepts the Bank's current blanket bond for lost, stolen, or destroyed
<br />Bonds and any future substitute blanket bond for lost, stolen, or destroyed Bonds that the Bank may
<br />arrange, and agrees that the coverage under any such blanket bond is acceptable to it and meets the
<br />Issuer's requirements as to security or indemnity. The Bank need not notify the Issuer of any changes
<br />in the security or other company giving such bond or the terms of any such bond, provided that the
<br />amount of such bond is not reduced below the amount of the bond on the date of execution of this
<br />Agreement. The blanket bond then utilized by the Bank for lost, stolen or destroyed Bonds by the Bank
<br />is available for inspection by the Issuer on request.
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