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with an escrow agreement or other instrument (the "Future Escrow Agreement") for such payment <br />(1) lawful money of the United States of America sufficient to make such payment or (2) Defeasance <br />Securities that mature as to principal and interest in such amounts and at such times as will insure <br />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 <br />of its services until all Defeased Certificates shall have become due and payable. At such time as <br />a Certificate shall be deemed to be a Defeased Certificate hereunder, as aforesaid, such Certificate <br />and the interest thereon shall no longer be secured by, payable from, or entitled to the benefits of, <br />the ad valorem taxes or revenues herein levied and pledged as provided in this Ordinance, and such <br />principal and interest shall be payable solely from such money or Defeasance Securities, and <br />thereafter the Issuer will have no further responsibility with respect to amounts available to the <br />Paying Agent/Registrar (or other financial institution permitted by applicable law) for the payment <br />of such Defeased Certificates, including any insufficiency therein caused by the failure of the Paying <br />Agent/Registrar (or other financial institution permitted by applicable law) to receive payment when <br />due on the Defeasance Securities. Notwithstanding any other provision of this Ordinance to the <br />contrary, it is hereby provided that any determination not to redeem Defeased Certificates that is <br />made in conjunction with the payment arrangements specified in subsection 7(a)(i) or (ii) shall not <br />be irrevocable, provided that: (1) in the proceedings providing for such payment arrangements, the <br />Issuer expressly reserves the right to call the Defeased Certificates for redemption; (2) gives notice <br />of the reservation of that right to the owners of the Defeased Certificates immediately following the <br />making of the payment arrangements; and (3) directs that notice of the reservation be included in <br />any redemption notices that it authorizes. <br />(b) Any moneys so deposited with the Paying Agent/Registrar may at the written <br />direction of the Issuer be invested in Defeasance Securities, maturing in the amounts and times as <br />hereinbefore set forth, and all income from such Defeasance Securities received by the Paying <br />Agent/Registrar that is not required for the payment of the Certificates and interest thereon, with <br />respect to which such money has been so deposited, shall be turned over to the Issuer, or deposited <br />as directed in writing by the Issuer. Any Future Escrow Agreement pursuant to which the money <br />and/or Defeasance Securities are held for the payment of Defeased Certificates may contain <br />provisions permitting the investment or reinvestment of such moneys in Defeasance Securities or <br />the substitution of other Defeasance Securities upon the satisfaction of the requirements specified <br />in subsection 7(a)(i) or (ii). All income from such Defeasance Securities received by the Paying <br />Agent/Registrar that is not required for the payment of the Defeased Certificates, with respect to <br />which such money has been so deposited, shall be remitted to the Issuer or deposited as directed in <br />writing by the Issuer. <br />(c) The term "Defeasance Securities" means any securities and obligations now or <br />hereafter authorized by Texas law that are eligible to refund, defease or otherwise discharge <br />obligations such as the Certificates. <br />(d) Until all Defeased Certificates shall have become due and payable, the Paying <br />Agent/Registrar shall perform the services of Paying Agent/Registrar for such Defeased Certificates <br />15 <br />