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<br />any time, or be enforceable by anyone, and shall be entitled to all the benefits of this Ordinance equally and
<br />proportionately with any and all other Bonds duly issued under this Ordinance.
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<br />(e) In accordance with Section 6 of Article 717k-6, V,A.T.C.S" this Section of this Ordinance shall
<br />constitute authority for the issuance of any such replacement bond without necessity of further action by the
<br />governing body of the City or any other body or person, and the duty of the replacement of such bonds is hereby
<br />authorized and imposed upon the Paying Agent/Registrar, and the Paying Agent/Registraf shall authenticate and
<br />deliver such bonds in the fonn and manner and with the effect, as provided in Section 4(d) of this Ordinance for
<br />Bonds issued in exchange for other ~onds.
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<br />SECTION 18. DEFEASANCE OF THE BONDS. (a) Any Bond and the interest thereon shall be deemed
<br />to be paid, retired, and no longer outstanding (a "Defeased Bond") within the meaning of this Ordinance, except
<br />to the extent provided in subsection (d) of this Section, when payment of the principal of such Bond, plus
<br />interest thereon to the due date (whether such due date be by reason of maturity, upon redemption, or otherwise)
<br />either (i) shall have been made or caused to be made in accordance with the tenns thereof (including the giving
<br />of any required notice of redemption), or (ii) shall have been provided for on or before such due date by
<br />irrevocably depositing with or making available to the Paying Agent/Registraf for such payment (1) lawful
<br />money of the United States of America sufficient to make such payment or (2) direct obligations of the United
<br />States of America, including obligations the principal of and interest on which are unconditionally guaranteed by
<br />the United States of America, which may be United States Treasury obligations such as its State and Local
<br />Government Series, and which may be book entry fonn (herein "Government Obligations") which mature as to
<br />principal and interest in such amounts and at such time as will insure the availability, without reinvestment, of
<br />sufficient money to provide for such payment, and when proper arrangements have been made by the City with
<br />the Paying Agent/Registrar for the payment of its services until all Defeased Bonds shall have become due and
<br />payable, At such time as a Bond shall be deemed to be a Defeased Bond hereunder, as aforesaid, such Bond
<br />and the interest thereon shall no longer be secured by, payable from, or entitled to the benefits of, the revenue
<br />herein levied and pledged as provided in this Ordinance, and such principal and interest shall be payable solely
<br />from such money or Government Obligations,
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<br />(b) Any money so deposited with the Paying Agent/Registrar may at the written direction of the City also
<br />be invested as hereinbefore set forth, and all income from such Government Obligations received by the Paying
<br />Agent/Registraf which is not required for the payment of the Bonds and interest thereon, with respect to which
<br />such money has been so deposited, shall be turned over to the City, or deposited as directed in writing by the
<br />City,
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<br />(c) Until all Defeased Bonds shall have become due and payable, the Paying Agent/Registrar shall perfonn
<br />the services of Paying Agent/Registrar for such Defeased Bonds the same as if they had not been defeased, and
<br />the City shall make proper arrangements to provide and pay for such services as required by this Ordinance,
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<br />(d) In the event that the principal and/or interest due on the Bonds shall be paid by AMBAC Indemnity
<br />pursuant to the municipal bond guaranty insurance policy issued by AMBAC Indemnity insuring the payment
<br />when due of the principal of and interest on the Bonds as provided therein (the "Municipal Bond Guaranty
<br />Insurance Policy"), the Bonds shall remain outstanding for all purposes, not be defeased or otherwise satisfied,
<br />and not be considered paid by the City, and the assignment and pledge of the proceeds of pledged revenues and
<br />all covenants, agreements, and other obligations of the City to the registered owners shall continue to exist and
<br />shall run to the benefit of AMBAC Indemnity, and AMBAC Indemnity shall be subrogated to the rights of such
<br />registered owners.
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<br />SECTION 19. TAX COVENANTS. The City covenants to take any action to assure, or refrain from any
<br />action which would adversely affect, the treaunent of the Bonds as obligations described in section 103 of the
<br />Code, the interest on which is not includable in the "gross income" of the holder for purposes of federal income
<br />taxation, In furtherance thereof, the City covenants as follows:
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