91-055 ORD AUTHORIZING ISSUANCE OF TAX AND REVENUE REFUNDING BONDS SERIES 1991

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the State of Texas, signs a written certificate to the effect that, in his or its opinion, during each fiscal year while any Bonds or 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 year, 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 so that the amount therein shall be equal to at least the average annual principal and interest requirements of all outstanding and the proposed Revenue Bonds. The 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 Revenue Bond 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 Revenue Bond Interest and Sinking Fund. 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 bonds. The Issuer has reserved the right to issue, not to exceed $9,900,000, as Revenue Bonds, for improvements and extensions to the System, without complying with paragraph (b) of this Section. Section 15. DEFEASANCE OF BONDS. (a) Any Bond and the interest thereon shall be deemed to be paid, retired, and no longer outstanding (a Defeased Bond ) within the meaning of this Ordinance, except to the extent provided in subsection (d) of this Section 15, when payment of the principal of such Bond, plus interest thereon to the due date (whether such due date be by reason of maturity, upon redemption, or otherwise) either (i) shall have been made or caused to be made in accordance with the terms thereof (including the giving of any required notice of redemption), or (ii) shall have been provided for on or before such due date by irrevocably depositing with or making available to the Paying Agent/Registrar for such payment (1) lawful money of the United States of America sufficient to make such payment or (2) Government Obligations which mature as to principal and interest in such amounts and at such times as will insure the availability, without rein- 25