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<br />(c) The term "Defeasance Securities" means (i) direct, noncallable obligations of the United
<br />States of America, including obligations that are unconditionally guaranteed by the United States
<br />of America, (ii) noncallable obligations of an agency or instrumentality of the United States of
<br />America, including obligations that are unconditionally guaranteed or insured by the agency or
<br />instrumentality and that, on the date of the purchase thereof are rated as to investment quality by a
<br />nationally recognized investment rating firm not less than AAA or its equivalent, and (iii)
<br />noncallable obligations of a state or an agency or a county, municipality, or other political
<br />subdivision of a state that have been refunded and that, on the date the governing body of the Issuer
<br />adopts or approves the proceedings authorizing the financial arrangements are rated as to investment
<br />quality by a nationally recognized investment rating firm not less than AAA or its equivalent.
<br />
<br />(d) Until all Defeased Bonds shall have become due and payable, the Paying Agent/Registrar
<br />shall perform the services of Paying Agent/Registrar for such Defeased Bonds the same as if they
<br />had not been defeased, and the Issuer shall make proper arrangements to provide and pay for such
<br />services as required by this Ordinance.
<br />
<br />(e) In the event that the Issuer elects to defease less than all of the principal amount of Bonds
<br />of a maturity, the Paying Agent/Registrar shall select, or cause to be selected, such amount of Bonds
<br />by such random method as it deems fair and appropriate.
<br />
<br />Section 28. DAMAGED, MUTILATED, LOST, STOLEN, OR DESTROYED BONDS.
<br />(a) Reolacement Bonds. In the event any outstanding Bond is damaged, mutilated, lost, stolen, or
<br />destroyed, the Paying Agent/Registrar shall cause to be printed, executed, and delivered, a new bond
<br />of the same principal amount, maturity, and interest rate, as the damaged, mutilated, lost, stolen, or
<br />destroyed Bond, in replacement for such Bond in the manner hereinafter provided.
<br />
<br />(b) Aoolication for Reolacement Bonds. Application forreplacement of damaged, mutilated,
<br />lost, stolen, or destroyed Bonds shall be made by the registered owner thereof to the Paying
<br />Agent/Registrar. In every case ofloss, theft, or destruction of a Bond, the registered owner applying
<br />for a replacement bond shall furnish to the Issuer and to the Paying Agent/Registrar such security
<br />or indemnity as may be required by them to save each of them harmless from any loss or damage
<br />with respect thereto. Also, in every case ofloss, theft, or destruction of a Bond, the registered owner
<br />shall furnish to the Issuer and to the Paying Agent/Registrar evidence to their satisfaction of the loss,
<br />theft, or destruction of such Bond, as the case may be. In every case of damage or mutilation of a
<br />Bond, the registered owner shall surrender to the Paying Agent/Registrar for cancellation the Bond
<br />so damaged or mutilated.
<br />
<br />(c) No Default Occurred. Notwithstanding the foregoing provisions of this Section, in the
<br />event any such Bond shall have matured, and no default has occurred which is then continuing in
<br />the payment of the principal of, redemption premium, if any, or interest on the Bond, the Issuer may
<br />authorize the payment of the same (without surrender thereof except in the case of a damaged or
<br />mutilated Bond) instead of issuing a replacement Bond, provided security or indemnity is furnished
<br />as above provided in this Section.
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