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<br />amount shall bear interest from the interest payment date next preceding the date of authentication,
<br />unless such date of authentication is after any Record Date (hereinafter defined) but on or before the
<br />next following interest payment date, in which case such principal amount shall bear interest from
<br />such next following interest payment date.
<br />
<br />THE PRINCIPAL OF AND INTEREST ON this Bond are payable in lawful money of the
<br />United States of America, without exchange or collection charges. The principal of this Bond shall
<br />be paid to the registered owner hereof upon presentation and surrender of this Bond at maturity or
<br />upon the date fixed for its redemption prior to maturity, at the principal corporate trust office of The
<br />Bank of New York, New York, New York, which is the "Paying AgentlRegistrar" for this Bond.
<br />The payment of interest on this Bond shall be made by the Paying AgentlRegistrar to the registered
<br />owner hereof on each interest payment date by check or draft, dated as of such interest payment date,
<br />drawn by the Paying AgentlRegistrar on, and payable solely from, funds of the Issuer required by
<br />the ordinance authorizing the issuance of the Bonds (the "Bond Ordinance") to be on deposit with
<br />the Paying AgentlRegistrar for such purpose as hereinafter provided; and such check or draft shall
<br />be sent by the Paying AgentlRegistrar by United States Mail, first-class postage prepaid, on each
<br />such interest payment date, to the registered owner hereof, at the address of the registered owner, as
<br />it appeared on the last business day of the month next preceding each such date (the "Record Date")
<br />on the Registration Books kept by the Paying AgentlRegistrar, as hereinafter described, or by such
<br />other method acceptable to the Paying AgentlRegistrar requested by, and the risk and expense of,
<br />the registered owner. Any accrued interest due upon the redemption of this Bond prior to maturity
<br />as provided herein shall be paid to the registered owner upon presentation and surrender of this Bond
<br />for redemption and payment at the principal corporate trust office of the Paying AgentlRegistrar.
<br />The Issuer covenants with the registered owner of this Bond that on or before each principal payment
<br />date, interest payment date, and accrued interest payment date for this Bond it will make available
<br />to the Paying Agent/Registrar, from the "Interest and Sinking Fund" created by the Bond Ordinance,
<br />the amounts required to provide for the payment, in immediately available funds, of all principal of
<br />and interest on the Bonds, when due.
<br />
<br />IF THE DATE for the payment of the principal of or interest on this Bond shall be a
<br />Saturday, Sunday, a legal holiday, or a day on which banking institutions in the City where the
<br />Paying AgentlRegistrar is located are authorized by law or executive order to close, then the date for
<br />such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday,
<br />or day on which banking institutions are authorized to close; and payment on such date shall have
<br />the same force and effect as if made on the original date payment was due.
<br />
<br />THIS BOND is one of an issue of Bonds initially dated March 15, 2000, authorized in
<br />accordance with the Constitution and laws of the State of Texas in the principal amount of
<br />$9,500,000 for the purpose of improving and extending the Issuer's Waterworks and Sewer System.
<br />
<br />ON JUNE 15,2010, or any date thereafter, the Bonds of this Series may be redeemed prior
<br />to their scheduled maturities, at the option of the Issuer, with funds derived from any available and
<br />lawful source, as a whole, or in part, and, if in part, the Issuer shall select and designate the maturity
<br />
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