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(d) Until all Defeased Bonds shall have become due and payable, the Paying Agent /Registrar
<br />shall perform the services of Paying Agent /Registrar for such Defeased Bonds the same as if they had
<br />not been defeased, and the Issuer shall make proper arrangements to provide and pay for such services
<br />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, stolen
<br />or destroyed, the Paying Agent /Registrar shall cause to be printed, executed and delivered, a new
<br />Bond of the same principal amount, maturity and interest rate, as the damaged, mutilated, lost, stolen
<br />or destroyed Bond, in replacement for such Bond in the manner hereinafter provided.
<br />(b) Application for Replacement Bonds. Application for replacement of damaged, mutilated,
<br />lost, stolen or destroyed Bonds shall be made by the registered owner thereof to the Paying
<br />Agent /Registrar. In every case of loss, theft or destruction of a Bond, the registered owner applying
<br />for a replacement Bond shall furnish to the Issuer and to the Paying Agent /Registrar such security or
<br />indemnity as may be required by them to save each of them harmless from any loss or damage with
<br />respect thereto. Also, in every case of loss, theft or destruction of a Bond, the registered owner shall
<br />furnish to the Issuer and to the Paying Agent /Registrar evidence to their satisfaction of the loss, theft
<br />or destruction of such Bond, as the case may be. In every case of damage or mutilation of a Bond,
<br />the registered owner shall surrender to the Paying Agent/Registrar for cancellation the Bond so
<br />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, and
<br />other expenses in connection therewith. Every replacement Bond issued pursuant to the provisions
<br />of this Section by virtue of the fact that any Bond is lost, stolen or destroyed shall constitute a
<br />contractual obligation of the Issuer whether or not the lost, stolen or destroyed Bond shall be found
<br />at any time, or be enforceable by anyone, and shall be entitled to all the benefits of this Ordinance
<br />equally and proportionately with any and all other Bonds duly issued under this Ordinance.
<br />(e) Authority for Issuing Replacement Bonds. In accordance with Sec. 1206.022, Government
<br />Code, this Section 7 of this Ordinance shall constitute authority for the issuance of any such
<br />replacement Bond without necessity of further action by the governing body of the Issuer or any other
<br />body or person, and the duty of the replacement of such Bonds is hereby authorized and imposed upon
<br />the Paying Agent /Registrar, and the Paying Agent /Registrar shall authenticate and deliver such Bonds
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