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<br />noncallable obligations of an agency or instnunentaiity of the United States of America, including obligations
<br />that are unconditionally guaranteed or insured by the agency or instnunentaJity and thaI, on the date of the
<br />purchase thereof are rated as to investment quality by a nationally recognized investment rating fIrm nolless
<br />than AAA or its equivalent, and (iii) noncallable obligations ofa state or an agency or a county, municipality,
<br />or other political subdivision of a state that have been refunded and thaI, on the date the governing body of
<br />the Issuer adopts or approves the proceedings authorizing the fInancial arrangements are rated as to
<br />investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent.
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<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 nol been
<br />defeased, and the Issuer shall make proper arrangements to provide and pay for such services as required
<br />by this Ordinance.
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<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 amounl of Bonds by such
<br />random method as il deems fair and appropriate.
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<br />Section 12. DAMAGED. MUTILATED LOST. STOLEN. OR DESTROYED BONDS. (a)
<br />Replacement Bonds. In the event any outstanding Bond is damaged, mutilated, lost, stolen, or destroyed, the
<br />Paying Agent/Registrar shall cause to be printed, executed, and delivered, a new bond of the same principal
<br />amount, maturity, and interest rate, as the damaged, mutilated,lost, stolen, or destroyed Bond, in replacement
<br />for such Bond in the manner hereinafter provided.
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<br />(b) Aoolication for Reolacement Bonds. Application for replacement of damaged, mutilaled, lost,
<br />stolen, or destroyed Bonds shall be made by the regislered owner thereof to Ihe Paying Agent/Registrar. In
<br />every case of loss, theft, or destruction of a Bond, the registered owner applying for a replacement bond shall
<br />furnish to the Issuer and to the Paying Agent/Registrar such security or indemnity as may be required by them
<br />to save each of them harmless from any loss or damage with respect thereto. Also, in every case of loss,
<br />theft, or destruction of a Bond, the registered owner shall furnish to the Issuer and to the Paying
<br />Agent/Registrar evidence to their satisfaction of the loss, theft, or destruction of such Bond, as the case may
<br />be. In every case of damage or mUlilation of a Bond, the registered owner shall surrender 10 the Paying
<br />Agent/Registrar for cancellation the Bond so damaged or mutilated.
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<br />(c) No Defaull Occurred Notwithstanding the foregoing provisions of this Section, in the event any
<br />such Bond shall have matured, and no default has occurred which is then continuing in the payment of the
<br />principal of, redemption premium, if any, or interest on the Bond, the Issuer may authorize the payment of the
<br />same (without surrender thereof except in the case of a damaged or mutilated Bond) instead of issuing a
<br />replacement Bond, provided security or indenullty is furnished as above provided in this Section.
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<br />(d) Char~e for Issuin~ Reolacement Bonds. Prior 10 the issuance of any replacement bond, the
<br />Paying Agent/Registrar shall charge the registered owner of such Bond with all legal, printing, and other
<br />expenses in connection therewith. Every replacement bond issued pursuant to the provisions of this Section
<br />by virtue of the fact that any Bond is lost, stolen, or destmyed shall constitute a contractual obligation of the
<br />Issuer whether or not the 10Sl, stolen, or destroyed Bond shall be found at any lime, or be enforceable by
<br />anyone, and shall be entitled to all the benefIts of this Ordinance equally and proportionately with any and all
<br />other Bonds duly issued under this Ordinance.
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