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<br />8'1M
<br />BO~l) ~'"FOR..,gTIOè'i
<br />~ner11
<br />In~~ ",ill &..~ on the &mò and ~ principal of a:¡d i.r1~¡: on the Bond3 ",ill initially :x ::-ayab!:: as provi¿¿ cn the
<br />COY:::!" pagc of this Privæ Pla,--=:¡,ct M=orandum. In the evct tMt the Boc.d3 arc no longer subj;:çt to the Book-E.:l:::'-Ocly
<br />Syston é.escriè;çj herein, the pri¡lcipal of the &md3 will be payable to the principal offic.;: of thc Paying .-\g:-"'r.iR;:gi~ and
<br />intcr~ on the Bvnd3 ",ill b<= pa}'ablc to the regiS"..;:¡-d O""T.~ shown on th.e r=rd3 of the Paying AgcuR;:giS"::r?r cn ~
<br />!Ïr.:=th day ofth.e month next pr::=:futg es.ch in~~ paymct date by ch;:çk mailed on or before the in~::st pa}IDe-'ut date or
<br />by such oth:::!" method as d.::s...--rio.d in th.e Ord.inan.c.;:. T.a.e Bends are i",,-ud as .fully regiS"=-d bor.d3 in the d::nomfu.:.don of
<br />.$5,000 or an}' i.r1teg:ral mtÙtiple thcr;::ofwithin a ma.-crity.
<br />~curity for Bonds
<br />The: Bonds are sp.:cial obligatioIl3 of ~ City payable, both. as to principal and intcr~ soldy from and s;:curd by a B...-s-. liee.
<br />aD. and plc:dge: ofthc Net Rcvcu.es of the Syst=. Net Re:vcues means'the gros.s re:vee.ues of the System af-..:::r deduc~ the:
<br />msint:::nanc.;: e¡¡.d op<:rating e;...~. Maint:::nanc.;: and oF<='"-ting expe=s inc1ud::: contractual paymee.ts which unc:.cr Texas
<br />lAW3 and their provisioIl3 are: est3blis.hd as opc-atirlg expcL.~. The: Bonds are not a charge u;X¡D. e¡¡.y oth<:r i.r1C,jüle: or
<br />rcv'ee.ue.s of the City and shall ¡¡e:v:::!" coa,,-utut::: a..:J. i.r1c!.c:bt:::dnes.s or ple:dge of the: gencral credit or taxing powcrs of the City.
<br />Tne Ord.inan.c.;: do¿s not create a1i:-.,. or mortg2.ge: aD. De System and any juc!gm.::nt against the: City may not b<= ee.forcd by levy
<br />and e:x;:çutioû. a.gainse a..:J.y pro~ owû.e.d by the: City, e:xc..-pt net Re:venue:s.
<br />Pledged Revenues
<br />All of the: Net Revee.ues of the: syst.em ""ith the: exc=?tion of thes.:: in exc.::ss of the: amounts re:quired to estlblish and r=..lintain
<br />the Revenues, Ro::s....orve: and int:::r::st and Sinking Funds are irrevocably pledged for the pajme-'ut of tho:: bonds and i.r1~o::st
<br />thereon. Tne paymc::J.t of t..ì.e Boads and the interest thcrc:on shall CO!l5titut::: a first liee. upon t..ì.e: Net Revenu.es of the Sys-=.
<br />Application of System Rev'enu~
<br />All Sys".:em revo::nUè5 are deposited in tIle Ro::vee.~ Fund and applied fust to the payment of aU ¡¡~s.s.:uy and r=r.able
<br />O::xpë::n.S<:s of °F<='"-tion and maint.::=c.:: of tho:: Syst..--m., thee. th::rdu:r transf::rs are made: as r.:qutre.d to the Interest and S¡;t:Gng
<br />Fu..'1.d and the Res....orvo:: Fund (as n=ssary) in we ord.:=', e.S".3blisho::d by th~ Ordinanc.: authorizing t..'1~ issu.:J.::c~ of th~ Bonò.
<br />Surplus moneys not required for the: above purpos.::s æay be t!.Sd for any la\¥ful P,lli-pos.::.
<br />Ro::demption of Bonds
<br />T.a.e City res....orvo::s tho:: right, at its option., to red= Bends hav-æg S".3ted maturitio::s on and aftcr Jaat:.3...ry 1,2007, in whole or in
<br />par" in princi¡:.al aoOWlts of 55 ,COO or any i.r1tegra! multiple: th::rc:of on January I, 200ó. or any dat.::: the::r~it::r. at the: par value::
<br />thaeof plus ac..-n.ted int::ro::st to tho:: dat.::: fi..xed for r.::d....--:::ption. If le:s.s than all of the: Bonds of a maC'~-¡ty is to be rc::d=::d, the:
<br />Bonds to b<: rd=::d shall be s::!;:çtd by tho:: City. If a Bond (or any POrtioCl of t..'1.e: principal 5U..-:J. there:of) shall !-.av'e bc:=
<br />called for reå::-::lption and notic.:: of such red..>mption sh.all have ~n giv~il, such Bond (or the pr1.1cipa.t amOl:.,1t th<:r::of to be
<br />r::de...>med) sh.all c~me: due:: and y<>}'able: on such red=ption 6.t.::: and int.:::Test thero::on shall = to = from and a¡'-~r the
<br />red..>mptioa 6.t.::: provided funds for tho:: y<>ymee.t of tho:: r~ption pric.:: aad accrued intcro::st thcreoo. aro:: held by the:: ?a>ing
<br />Ag:::ttIRegist:ar OCl t..ì.e rec!.cmptioCl è.atc::. .
<br />--
<br />Not less th= 30 days prior to a red=ptioCl dat::: for the Bonò. the:: City shall <:aus.:: a no tic.:: of red=ption to be: =t by United
<br />Stat:=S mail, first class, pas-cage pr::p.aid., to es.ch r.::giS".::red ow¡:¡cr of a Bond to be: redecrned, in ....'hole or in part, at the:: a::.:re::ss
<br />of the: regiS"..:::red ov.ü.<:r ap~g on tho:: registration books of t..ì.e Paying Ag::rltIRe::gistrar at t..'1o:: clos::: of business c¡¡ t..1.~
<br />busi.r1= day ncXt preceding the dat.:: of mailing suÒ ¡¡otic.::. .Any notic.: of ro::d=ption so r::ailed shall be coClclusivdy
<br />presumed to !:.avo:: Oc:Q duly giv'o ÍIT;:s-~tivo:: ofwho::ther r=i,,'ed by tho:: boû.dholw.
<br />Rates
<br />Tne: City COv';:-'.2llts kd agr~c::s that it will at all times fi..x, C::S".3blish. rrcintain and collo::ct such rat::s, cb.arg::s a.'1d fè:S for the:
<br />us.:: and availability of th.: System and at ill times as a:e o..::-:P<""~:y to produce Gross R':v'::rlue:s suI:lci::rlt (1) to pay all C'J.ITcnt
<br />o~ting a.'1.d r::aint=œ o::;...~ oft..\e Syst:::m, and (1) to make all deposits now or hae:l.ftcr required to be mad:: i.,to t..ì.e
<br />FU:J.ds created.
<br />Additional B.:J¡¡ds
<br />Tho:: City re...",=";ed t..ie: right to is..:"'~ adiition;:J parity rev'e:1~ bo:J.ds, to be bown as Additional Bonò, ",,'hich whee. i5.>~ a.'1d
<br />d.::livered, sh:ill b<: payable: from and s<:cured by a first lio on and pledge of t..'1e: Net R':V::rlue:s of the: SyS"'-=, in t..':e:: $;1.7\':
<br />rr.a.:J...1cr a.'1.d to tho:: sa.'!lO:: o::xtent as the Boads and aU A¿¿jtiorul30nds shall in all ro::spe:cts be a parity and of ~q::al ¿igr..i~'. Tne:
<br />A¿¿¡tioDß.l Bo;:¡ds may be issued Ùl on.: or moro:: inS"..allm::rlts or S<..-ri~s. prov'i¿ed, aow.:ver, that roo inst:lI!.;TI::rlt or s.::rio::s of
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