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<br />BOND INFORMATION
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<br />Authority for Issuance
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<br />The Bonds were authorized at elections held on various dates, and passed by a majority of the participating voten. The City is
<br />authorized to incur debt by voter authorization by Article 1175 of the general laws of the State of Texas and by Ordinance as
<br />authorized in the City Charter adopted by voters on February 24, 1967,
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<br />Security fol' Bonds
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<br />All taxable property within the City is subject to a continuing direct annual ad valorem tax levied by the City sufficient to provide
<br />for the payment of principal of and iutereat on aU obligations payable in whole or in part from ad valorem taxes, which tax must
<br />be levied within limits prescribed by law. The City operates under a homc>-Nle charter as authorized by Article XI, Section S
<br />of the Constitution of the State of Texas, The City's charter restricts luch tax levy to no more than $2.50 per $100 of Assessed
<br />Valuation for payment of debt.
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<br />Redemption of Bonds
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<br />The City reserves the right, at its option, to redeem Bonds having stated maturitiea on and after August I, 2002, in whole or in
<br />part in principal amounts of $5,000 or any integral multiple thereof, on August I, 2001, or any date thereafter, at the par value
<br />thereof plus accrued interest to the date fixed for redemption. If less than aU of the Bonds are to be redeemed and if less than
<br />all of a maturity is to be redeemed, the Paying AgentlRegistrar shall detennine by lot the Bonds, or portions thereof, within luch
<br />maturity to be redeemed.
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<br />Not less than 30 days prior to a redemption date for the Bonds, the City shall cause a notice of redemption to be sent by United
<br />States mail, first class, postage prepaid, to each registered owner of a Bond to be redeemed, in whole or in part, at the address
<br />of the registered owner appearing on the registration books of the Paying AgentlRegistrar at the close of business on the business
<br />day next preceding the date of mailing such notice. Any notice of redemption so mailed shall be conclusively presumed to have
<br />been duly given irrespective of whether received by the bondholder.
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<br />Paying AgenURegistrar
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<br />The initial Paying AgentlRegistrar is Ameritrust Texas N .A., Dallas, Texas. In the Ordinance the City retains the right to replace
<br />the Paying AgentlRegistrar. The City covenants to maintain and provide a Paying AgentIRegistrar at all times while the Bonds
<br />are outstanding and any successor Paying AgentIRegistrar shall be a commercial bank or trust company organized under the laws
<br />of the State of Texas or other entity duly qualified and legally authorized to serve as and perform the duties and services of Paying
<br />AgentIRegistrar for the Bonds. Upon any change in the Paying AgentlRegistrar for the Bonds, the City agrees to promptly cause
<br />a written notice thereof to be sent to each registered owner of the Bonds by United States mail, first class, postage prepaid, which
<br />notice shall also give the address of the new Paying AgentlRegistrar.
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<br />Principal of the Bonds will be payable to the registered owner at maturity or prior redemption upon presentation at the principal
<br />office of the Paying AgentlRegistrar. Interest on the Bonds will be payable by check, dated as of the interest payment date, and
<br />mailed by the Paying AgentfRegistrar to registered owners as shown on the records of the Paying AgentfRegistrar on the beard
<br />Date (see "Record Date for Interest Payment" herein), or by such other method, acceptable to the Paying Agent/Registrar,
<br />requested by, and at the risk and expense of, the registered owner. If the date for the payment of the principal of or interc:lt on
<br />the Bonds shaD be a Saturday, Sunday, legal holiday, or day on which banking institutions in the city where the Paying
<br />AgentlRegistrar is located are authorized by law or executive order to close, then the date for such payment shaD be the next
<br />succeeding day which is not such a Saturday, Sunday, legal holiday, or day on which banking institutions are authorized to close;
<br />and payment on such date shaD have the same force and effect u if made on the original date payment was due.
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<br />TransCer, Exchange and Registratioa
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<br />The Bonds may be transferred and exchanged on the registration books of the Paying AgentfRegistrar only upon presentation and
<br />surrender thereof to the Paying AgentlRegistrar and such transfer or exchange sball be without expense or service charge to the
<br />registered owner, except for any tax or other governmental charges required to be paid with respect to such registration, exchange
<br />and transfer. A Bond may be assigned by the execution of an assignment form on the Bond or by other instrument of transfer
<br />and usignmc:ntacccptable to the Paying AgentlRegistrar. A new Bond or Bonds will be delivered by the Paying AgentIRegistru,
<br />in lieu of the Bonds being transferred or exchanged, at the principal office of the Paying AgentlRegistrar, or ICDt by United Stata
<br />mail, first class, postage prepaid, to the new registered owner or his designee. To the extent possible, new Bonds issued in an
<br />exchange or transfer of Bonds will be delivered to the registered owner or assignee of the registered owner in not more than dutle
<br />business days after the receipt of the Bonds to be canceled, and the written instrument of transfer or request for exchange duly
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