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(b) Any moneys so deposited xvith the Paying Agent/Registrar may at the xvritten direction of the
<br />Issuer also be invested in Defeasance Securities, maturing in the amounts and times as hereinbefore set forth,
<br />and all income from such Defeasance Securities received by the Paying Agent/Registrar that is not required
<br />for the payment of the Bonds and interest thereon, xvith respect to xvhich such money has been so deposited,
<br />shall be tamed over to the Issuer, or deposited as directed in xvriting by the Issuer. Any Future Escroxv
<br />Agreement pursuant to xvhich the money and/or Defeasance Securities are held for the payment of Defeased
<br />Bonds may contain provisions permitting the investment or reinvestment of such moneys in Defeasance
<br />Securities or the substitution of other Defeasance Securities upon the satisfaction of the requirements
<br />specified in subsection 9(a)(i) or (ii). All income from such Defeasance Securities received by the Paying
<br />AgenffRegistrar xvhich is not required for the payment of the Defeased Bonds, xvith respect to xvhich such
<br />money has been so deposited, shall be remitted to the Issuer or deposited as directed in xvriting by the Issuer.
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<br /> (c) The term "Defeasance Securities" means (i) direct, noncallable obligations of the United States
<br />of America, including obligations that are unconditionally guaranteed by the United States of America., (ii)
<br />noncallable obligations of an agency or instrumentality of the United States of America, including obligations
<br />that are unconditionally guaranteed or insured by the agency or instrumentality and that, on the date of the
<br />purchase thereof are rated as to investment quality by a nationally recognized investment rating firm not less
<br />than AAA or its equivalent, and (iii) noncallable obligations of a state or an agency or a county, municipality,
<br />or other political subdivision of a state that have been refunded and that, on the date the goveming 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 not 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 of a
<br />maturity, the Paying AgenffRegistrar shall select, or cause to be selected, such amount of Bonds by such
<br />random method as it deems fair and appropriate.
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<br /> Section 10. 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 AgenffRegistrar shall cause to be printed, executed, and delivered, a nexv 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) Application for Replacement Bonds. Application for replacement of damaged, mutilated, lost,
<br />stolen, or destroyed Bonds shall be made by the registered oxvner thereof to the Paying Agent/Registrar. In
<br />every case of loss, theft, or destruction of a Bond, the registered oxvner applying for a replacement bond shall
<br />fumish 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 xvith respect thereto. Also, in every case of loss,
<br />theft, or destruction of a Bond, the registered oxvner shall fumish to the Issuer and to the Paying
<br />AgenffRegistrar 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 mutilation of a Bond, the registered oxvner shall surrender to the Paying
<br />Agent/Registrar for cancellation the Bond so damaged or mutilated.
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