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Section 6. DEFEASANCE OF BONDS. <br />(a) Any Bond and the interest thereon shall be deemed to be paid, retired and no longer <br />outstanding (a "Defeased Bond ") within the meaning of this Ordinance, except to the extent provided in <br />subsection (d) of this Section, when payment of the principal of such Bond, plus interest thereon to the due <br />date (whether such due date be by reason of maturity or otherwise) either (i) shall have been made or <br />caused to be made in accordance with the terms thereof, or (ii) shall have been provided for on or before <br />such due date by irrevocably depositing with or making available to the Paying Agent/Registrar in <br />accordance with an escrow agreement or other instrument (the "Future Escrow Agreement ") for such <br />payment (1) lawful money of the United States of America sufficient to make such payment or (2) <br />Defeasance Securities that mature as to principal and interest in such amounts and at such times as will <br />insure the availability, without reinvestment, of sufficient money to provide for such payment, and when <br />proper arrangements have been made by the Issuer with the Paying Agent/Registrar for the payment of its <br />services until all Defeased Bonds shall have become due and payable. At such time as a Bond shall be <br />deemed to be a Defeased Bond hereunder, as aforesaid, such Bond and the interest thereon shall no longer <br />be secured by, payable from, or entitled to the benefits of, the ad valorem taxes herein levied and pledged <br />as provided in this Ordinance, and such principal and interest shall be payable solely from such money or <br />Defeasance Securities. Notwithstanding any other provision of this Ordinance to the contrary, it is hereby <br />provided that any determination not to redeem Defeased Bonds that is made in conjunction with the <br />payment arrangements specified in Subsection (a)(i) or (ii) of this Section shall not be irrevocable, <br />provided that: (1) in the proceedings providing for such payment arrangements, the Issuer expressly <br />reserves the right to call the Defeased Bonds for redemption; (2) gives notice of the reservation of that <br />right to the owners of the Defeased Bonds immediately following the making of the payment <br />arrangements; and (3) directs that notice of the reservation be included in any redemption notices that it <br />authorizes. <br />(b) Any moneys so deposited with the Paying Agent/Registrar may at the written direction of the <br />Issuer be invested in Defeasance Securities, maturing in the amounts and times as hereinbefore set forth, <br />and all income from such Defeasance Securities received by the Paying Agent/Registrar that is not <br />required for the payment of the Bonds and interest thereon, with respect to which such money has been so <br />deposited, shall be turned over to the Issuer, or deposited as directed in writing by the Issuer. Any Future <br />Escrow Agreement pursuant to which the money and/or Defeasance Securities are held for the payment of <br />Defeased Bonds may contain provisions permitting the investment or reinvestment of such moneys in <br />Defeasance Securities or the substitution of other Defeasance Securities upon the satisfaction of the <br />requirements specified in Subsection (a)(i) or (ii) of this Section. All income from such Defeasance <br />Securities received by the Paying Agent/Registrar which is not required for the payment of the Defeased <br />Bonds, with respect to which such money has been so deposited, shall be remitted to the Issuer or <br />deposited as directed in writing by the Issuer. <br />(c) The term " Defeasance Securities" means any securities and obligations now or hereafter <br />authorized by State law that are eligible to refund, retire or otherwise discharge obligations such as the <br />Bonds. <br />(d) Until all Defeased Bonds shall have become due and payable, the Paying Agent/Registrar shall <br />perform the services of Paying Agent/Registrar for such Defeased Bonds the same as if they had not been <br />defeased, and the Issuer shall make proper arrangements to provide and pay for such services as required <br />by this Ordinance. <br />14 <br />