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<br />(a) The term "Additional Bonds" shall mean the additional parity obligations which the City reserves the
<br />right to issue in the future, as provided in Section 15 of this Ordinance.
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<br />(b) The term "AMBAC Indemnity" shall mec'\n AMBAC Indemnity Corporation, a Wisconsin-domiciled
<br />stock insurance company,
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<br />(c) The terms "Bond" or "Bonds" shall mean one or more, as the case may be, of the Bonds authorized to
<br />be issued by this Ordinance.
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<br />(d) The terms "City" and "Issuer" shall mean the City of La Porte, Texas, or where appropriate the City
<br />Council thereof,
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<br />(e) The term "City Council" shall mean the governing body of the City.
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<br />(f) The term "Interest and Sinking Fund" means the fund provided for in Section 11 hereof.
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<br />(g) The term "Municipal Bond Guaranty Insurance Policy" shall mean the municipal bond insurance policy
<br />issued by AMBAC Indemnity insuring the payment when due of the principal of and interest on the Bonds as
<br />provided therein.
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<br />(h) The term "Net Revenues" means all gross revenues of the System after deducting the necessary and
<br />reasonable expenses of operation and maintenance of the System, including all salaries, labor, material, repairs,
<br />and extensions necessary to render efficient service; provided, however, that only such repairs and extensions, as
<br />in the judgment of the City Council, reasonably and fairly exercised, are necessary to keep the System in
<br />operation and render adequate service to the City and the inhabitants thereof, or such as might be necessary to
<br />meet some physical accident or condition which would otherwise impair the Parity Bonds shall be deducted in
<br />determining the "Net Revenues", Depreciation and payments into and out of the Interest and Sinking Fund and
<br />the Reserve Fund shall never be considered as expenses of operation and maintenance,
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<br />(i) The term "Parity Bonds" shall mean collectively the Previously Issued Parity Bonds, the Bonds, and
<br />any Additional Bonds,
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<br />(j) The term "Parity Bonds Ordinances" shall mean coIlectively the ordinances authorizing the Previously
<br />Issued Parity Bonds, the Bonds, and any Additional Bonds.
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<br />(k) The term "Previously Issued Parity Bonds" shall mean the outsk'U1ding "City of La Porte, Texas,
<br />Waterworks and Sewer System Revenue Bonds, Series 1985", the "City of La Porte, Texas, Waterworks and
<br />Sewer System Revenue Bonds, Series 1990", and the "City of La Porte, Texas, Waterworks and Sewer System
<br />Revenue Refunding Bonds, Series 1991".
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<br />(I) The term "Reserve Fund" shall mean that fund described in Section 12 hereof.
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<br />(m) The term "System" shall mean the City's entire existing waterworks and sanity sewer system, together
<br />with all future extensions, enlargements, additions, replacements, and improvements thereto.
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<br />(n) The "System Fund" shall mean that fund described in Section 10 hereof.
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<br />(0) The term "Year" or "fiscal year" shall mean the regular fiscal year used by the City in connection with
<br />the operation of the System, which may be any 12 consecutive months period established by the City.
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<br />SECTION 7. PLEDGE, The Parity Bonds, redemption premium, if any, and any interest payable thereon,
<br />are and shall be secured by and payable from a first lien on and pledge of the Net Revenues, and the Net
<br />Revenues are further pledged irrevocably to the establishment and maintenance of the Funds created by the
<br />Parity Bonds Ordinances, The Parity Bonds are not and will not be secured by or payable from a mortgage or
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