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September 15, 2017, and each March 15 and September 15 thereafter until maturity or earlier
<br /> redemption of this Certificate, by check sent by United States mail, first class, postage prepaid,
<br /> by the Paying Agent/Registrar to the Registered Owner of record as of the close of business on
<br /> the fifteenth calendar day of the month immediately preceding the applicable interest payment
<br /> date, as shown on the registration books kept by the Paying Agent/Registrar. Any accrued
<br /> interest payable at maturity or earlier redemption shall be paid upon presentation and surrender
<br /> of this Certificate at the principal corporate trust office of the Paying Agent/Registrar.
<br /> Notwithstanding the foregoing, while the Certificates are held by the Texas Water Development
<br /> Board (the "TWDB"), payment of principal of and interest on the Certificates shall be made by
<br /> federal funds wire transfer, at no cost to the Purchaser, to an account at a financial institution
<br /> located in the United States designated by the Purchaser.
<br /> THIS CERTIFICATE IS ONE OF A DULY AUTHORIZED SERIES OF
<br /> CERTIFICATES (the "Certificates") in the aggregate principal amount of $10,635,000 issued
<br /> pursuant to an ordinance adopted by the City Council of the City on January 23, 2017 (the
<br /> "Ordinance"), for the purpose of providing all or part of the funds to pay contractual obligations
<br /> to be incurred for the construction of public works and the purchase of materials, supplies,
<br /> equipment, machinery, buildings, land and rights-of-way for authorized needs and purposes and
<br /> for the payment of contractual obligations for professional services, to wit (i) improvements and
<br /> extensions to the City's water and sewer system, (ii) street improvements, (iii) drainage
<br /> improvements, and (iv) professional services rendered in connection with the above listed
<br /> projects.
<br /> THE CITY RESERVES THE RIGHT, at its option, to redeem, prior to their maturity,
<br /> Certificates maturing on or after March 15, 2028, in whole or in part, in inverse order of
<br /> maturity, on March 15, 2027, or any date thereafter, at par plus accrued interest to the date fixed
<br /> for redemption.
<br /> THE CERTIFICATES MAY BE REDEEMED IN PART only in integral multiples of
<br /> $5,000. If a Certificate subject to redemption is in a denomination larger than $5,000, a portion
<br /> of such Certificate may be redeemed, but only in integral multiples of $5,000. In selecting
<br /> portions of Certificates for redemption, each Certificate shall be treated as representing that
<br /> number of Certificates of $5,000 denomination which is obtained by dividing the principal
<br /> amount of such Certificate by $5,000. Upon surrender of any Certificate for redemption in part,
<br /> the Paying Agent/Registrar, in accordance with the provisions of the Ordinance, shall
<br /> authenticate and deliver in exchange therefor a Certificate or Certificates of like maturity and
<br /> interest rate in an aggregate principal amount equal to the unredeemed portion of the Certificate
<br /> so surrendered.
<br /> NOTICE OF ANY SUCH REDEMPTION, identifying the Certificates or portions
<br /> thereof to be redeemed, shall be sent by United States mail, first class, postage prepaid, to the
<br /> Registered Owners thereof at their addresses as shown on the books of registration kept by the
<br /> Paying Agent/Registrar, not less than thirty (30) days before the date fixed for such redemption.
<br /> By the date fixed for redemption, due provision shall be made with the Paying Agent/Registrar
<br /> principal is legal tender for the payment of debts due to the United States of America, and to pay interest thereon at
<br /> the rate shown above,calculated on a basis of a 360-day year composed of twelve 30-day months, from the later of
<br /> the Issuance Date identified above or the most recent interest payment date to which interest has been paid or duly
<br /> provided for.
<br /> A-2
<br /> HOU:3746876.1
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