98-040 ORD AUTHORIZE TEXAS TAX AND REVENUE REFUNDING BONDS, SERIES 1998

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then the certified public accountant shall determine and certify the amount of Net Revenues as being the total of (i) the actual Net Revenues for the entire period, plus (ii) a sum equal to the aggregate amount by which the actual billings to customers of the System during the entire period would have been increased if such increased rates or chazges had been in effect during the entire period. (c) An independent registered professional engineer of the State of Texas, or an independent firm of engineers acting by and through a registered professional engineer of the State of Texas, signs a written certificate to the effect that, in his or its opinion, during each fiscal year while any of the Outstanding Revenue Bonds, or any Revenue Bonds are scheduled to be outstanding, beginning with the fiscal year next following the date of the then proposed Revenue Bonds, the Net Revenues estimated to be received during each of said fiscal years, respectively, will be at least equal to 1.10 times the principal and interest requirements, during each such fiscal yeaz, respectively, of all bonds of any nature or lien which are payable from Net Revenues and which are scheduled to be outstanding after the issuance of the then proposed Revenue Bonds. In arriving at such opinion there may be taken into consideration any prospective additions to the System or the Net Revenues, any scheduled, projected, or reasonably expected changes in rates and charges, anticipated increases or decreases in Net Revenues or maintenance and operation expenses of the System, and any other factor which in his or its opinion would have a material impact on the Net Revenues. (d) Provision shall be made in the ordinance authorizing their issuance for establishing or contributing to a Reserve Fund for the Revenue Bonds so that the amount therein shall be equal to at least the average annual principal and interest requirements of all Outstanding Revenue Bonds, and the proposed Reserve Fund shall be funded, within not more than five years from the date of such delivery of the Revenue Bonds, by deposits of Net Revenues in approximately equal monthly installments on or before the lOth day of each month commencing in the month following the issuance of such Revenue Bonds. The Reserve Fund shall be used solely to pay the principal of and interest on the Revenue Bonds to the extent of any deficiency in the Interest and Sinking Fund for the Revenue Bonds. Any amounts so applied shall be replaced by equal monthly deposits over the period of time determined in the ordinance authorizing such Revenue Bonds. (e) That all calculations of principal and interest requirements of any bonds made in connection with the issuance of any then proposed Revenue Bonds shall be made as of the date of such Revenue Bonds; and also in making calculations for such purpose, and for any other purpose under this Ordinance, principal amounts of any bonds which must be redeemed prior to maturity pursuant to any applicable mandatory redemption requirements shall be deemed to be maturing amounts of principal of such Revenue Bonds. Section 14. DAMAGED, MUTILATED, LOST, STOLEN, OR DESTROYED BONDS. (a) Replacement Bonds. In the event any outstanding Bond is damaged, mutilated, lost, stolen, or destroyed, the Paying Agent/Registrar shall cause to be printed, executed, and delivered, a new bond of the same principal amount, maturity, and interest rate, as the damaged, mutilated, lost, stolen, or destroyed Bond, in replacement for such Bond in the manner hereinafter provided. 25