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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 eyuivalent, 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 />(d) Until all Defeased Bonds shall have become due and payable, the Paying
<br />AgendRegistrar shall perform the services of Paying Agent/Registrar for such Defeased Bonds the
<br />same as if they had not been defeased, and the Issuer shall make proper arrangements to provide and
<br />pay for such services as required by this Ordinance.
<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 />Section 7. DAMAGED, MUTILATED, LOST, STOLEN, OR DESTROYED BONDS.
<br />(a) Replacement Bonds. In the event any outstanding Bond is damaged, mutilated, lost,
<br />stolen or destroyed, the Paying Agent/Registrar shall cause to be printed, executed and delivered,
<br />a new Bond of the same principal amount, maturity and interest rate, as the damaged, mutilated, lost,
<br />stolen or destroyed Bond, in replacement for such Bond in the manner hereinafter provided.
<br />(b) Application for Replacement Bonds. Application for replacement of damaged,
<br />mutilated, lost, stolen or destroyed Bonds shall be made by the registered owner thereof to the
<br />Paying Agent/Registrar. In every case of loss, theft or destruction of a Bond, the registered owner
<br />applying for a replacement Bond shall furnish to the Issuer and to the Paying Agent/Registrar such
<br />security or indemnity as may be required by them to save each of them harmless from any loss or
<br />damage with respect thereto. Also, in every case of loss, theft or destruction of a Bond, the
<br />registered owner shall furnish to the Issuer and to the Paying AgentlRegistrar evidence to their
<br />satisfaction of the loss, theft or destruction of such Bond, as the case may be. In every case of
<br />damage or mutilation of a Bond, the registered owner shall surrender to the Paying AgentlRegistrar
<br />for cancellation the Bond so damaged or mutilated.
<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 that is then continuing in the
<br />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.
<br />(d) Charge for Issuing Replacement Bonds. Prior to the issuance of any replacement Bond,
<br />the Paying Agent/Registrar shall charge the registered owner of such Bond with all legal, printing,
<br />and other expenses in connection therewith. Every replacement Bond issued pursuant to the
<br />provisions of this Section by virtue of the fact that any Bond is lost, stolen or destroyed shall
<br />constitute a contractual obligation of the Issuer whether or not the lost, stolen or destroyed Bond
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