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<br />[Form of Back Panel of Bond]
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<br />THE BONDS are issued pursuarit to the Bond Ordinance whereunder the City covenants to levy a
<br />continuing direct annual ad valorem tax on taxable property within the City, not to exceed $2.50 per assessed $100
<br />valuation, as provided in Article XI, Section 5 of the Texas Constitution, for each year while any part of the Bonds
<br />are considered outstanding under the provisions of the Bond Ordinance, in sufficient amount to pay interest on each
<br />Bond as it becomes due, to provide a sinking fund for the payment of the principal of the Bonds when due, and to
<br />pay the expenses of assessing and collecting such tax, all as more specifically provided in the Bond Ordinance.
<br />Reference is hereby made to the Bond Ordinance for provisions with respect to the custody and application of the
<br />City's funds, remedies in the event of a default hereunder or thereunder, and the other rights of the registered owner.
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<br />THIS BOND IS TRANSFERABLE OR EXCHANGEABLE only upon presentation and surrender at the
<br />principal corporate office of the Paying Agent/Registrar. If this Bond is being transferred, it shall be duly endorsed
<br />for transfer or accompanied by an assignment duly executed by the registered owner, or his authorized
<br />representative, subject to the terms and conditions of the Bond Ordinance.
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<br />IF THE DATE for the payment of the principal of or interest on this Bond shall be a Saturday, a Sunday, a
<br />legal holiday, or a day on which banking institutions in the city where the designated payment office of the Paying
<br />AgentlRegistrar is located are authorized by law or executive order to close, or the United States Postal Service is
<br />not open for business, then the date for such payment shall be the next succeeding day which is not such a Saturday,
<br />Sunday, legal holiday, or day on which banking institutions are authorized to close, or the United States Postal
<br />Service is not open for business; and payment on such date shall have the same force and effect as if made on the
<br />original date payment was due.
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<br />ON MARCH 15,2010, or on any date thereafter, the Bonds of this series may be redeemed prior to their
<br />scheduled maturities, at the option of the City, with funds derived from any available and lawful source, as a whole,
<br />or in part (provided that a portion of a Bond may be redeemed only in an integral multiple of $5,000) at the
<br />redemption price of the principal amount of Bonds called for redemption, plus accrued interest thereon to the date
<br />fixed for redemption. If less than all of the Bonds are to be redeemed, the City shall determine the maturity or
<br />maturities and the amounts thereof to be redeemed and shall direct the Paying Agent/Registrar to call by lot Bonds,
<br />or portions thereof, within such maturity or maturities and in such principal amounts, for redemption.
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<br />AT LEAST 30 days prior to the date for any such redemption, a notice of such redemption shall be sent by
<br />the Paying Agent/Registrar by United States mail, first class, postage prepaid, to the registered owner of each Bond,
<br />or portion thereof to be redeemed, at its address as it appeared on the Registration Books on the 45th day prior to
<br />such redemption date and to major securities depositories, national bond rating agencies, and bond information
<br />services; provided, however, that the failure to send, mail, or receive such notice, or any defect therein or in the
<br />sending or mailing thereof, shall not affect the validity or effectiveness of the proceedings for the redemption of any
<br />Bond. By the date fixed for any such redemption, due provision shall be made by the City with the Paying
<br />Agent/Registrar for the payment of the required redemption price for this Bond or the portion hereof which is to be
<br />so redeemed, plus accrued interest thereon to the date fixed for redemption. If such notice of redemption is given,
<br />and if due provision for such payment is made, all as provided above, this Bond, or the portion thereof which is to be
<br />so redeemed, thereby automatically shall be redeemed prior to its scheduled maturity, and shall not bear interest
<br />after the date fIXed for its redemption, and shall not be regarded as being outstanding except for the right of the
<br />registered owner to receive the redemption price plus accrued interest to the date fixed for redemption from the
<br />Paying Agent/Registrar out of the funds provided for such payment. The Paying AgentlRegistrar shall record in the
<br />Registration Books all such redemptions of principal of this Bond or any portion hereof. If a portion of any Bond
<br />shall be redeemed, a substitute Bond or Bonds having the same maturity date, bearing interest at the same rate, in
<br />any denomination or denominations in any integral multiple of $5,000, at the written request of the registered owner,
<br />and in an aggregate principal amount equal to the unredeemed portion thereof, will be issued to the registered owner
<br />upon the surrender thereof for cancellation, at the expense of the City, all as provided in the Bond Ordinance.
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<br />ALL BONDS OF THIS SERIES are issuable solely as fully registered Bonds, without interest coupons, in
<br />the denomination of any integral multiple of $5,000. As provided in the Bond Ordinance, this Bond, or any
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