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<br />DRAFT OF 9/1199
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<br />RESOLUTION AUTHORIZING THE ISSUANCE AL'JD SALE OF "LA PORTE AREA
<br />WATER AUTHORITY CONTRACT REVENUE REFUNDING BONDS, SERIES 1999";
<br />APPROVING AND AUTHORIZING INSTRUMENTS AL"l'D PROCEDURES RELATING
<br />THERETO; AND AUTHORING OTHER MATTERS RELATED THERETO
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<br />WHEREAS, the La Porte Area Water Authority (the "Authority") was organized pursuant to the provisions
<br />of Section 59 of Article XVI of the Constitution of the State of Texas, by special act, namely, Chapter 729, page
<br />2,678 et seq., of the 67rh Legislature of Texas, Regular Session, 1981 (the "Act"), and operates under the Act and
<br />Chapters 49 and 54 of the Texas Water Code, as amended; and
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<br />WHEREAS, the Act authorizes the Authority, with the approval of the City Council of the City of La Porte,
<br />to issue its revenue bonds, which revenue bonds may be secured by and payable from pledges of all or any part of
<br />the revenues, receipts, or assets of the Authority or the revenues of anyone or more leases or other contracts made;
<br />and
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<br />WHEREAS, the Board of Directors of the Authority (the "Board") has issued revenue bonds in the original
<br />aggregate principal amount of $9,800,000 now outstanding in the aggregate principal amount of $8,080,OOO(the
<br />"Refunded Bonds"), the net proceeds of which were used to acquire an undivided interest in the Southeast Water
<br />Purification Plant of the City of Houston, Texas, and a transmission and distribution system to provide a reliable
<br />supply of potable fresh water to serve persons and businesses in the Authority and in certain areas in Harris County,
<br />Texas outside the Authority but within its authorized service area;
<br />
<br />WHEREAS, Chapter 1207, Texas Government Code ("Chapter 1207") authorizes the Authority to issue
<br />refunding bonds and to deposit the proceeds from the sale thereof, and any other available funds or resources,
<br />directly with a place of payment (paying agent) for the Refunded Bonds, and such deposit, if made before such
<br />payment dates, shall constitute the making of firm banking and financial arrangements for the discharge and final
<br />payment of the Refunded Bonds;
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<br />WHEREAS, Chapter 1207 further authorizes the Board to enter into an escrow agreement with any paying
<br />agent for the Refunded Obligations with respect to the safekeeping, investment, reinvestment, administration. and
<br />disposition of any such deposit, upon such terms and conditions as the Board and such paying agent may agree,
<br />provided that such deposits may be in the gross amount necessary, or invested and reinvested in obligations and
<br />principal of and interest on which are unconditionally guaranteed by the United States of America, and which shall
<br />mature and bear interest payable at such times and in such amounts, as will be sufficient to provide for the scheduled
<br />payment or prepayment of the Refunded Obligations;
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<br />WHEREAS, the Chase Bank of Texas, National Association., the successor to First City National Bank of
<br />Houston, is the paying agent for the Refunded Bonds, and the Escrow Agreement hereinafter authorized constitutes
<br />an escrow agreement of the kind authorized and permitted by Chapter 1207;
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<br />THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE LA PORTE AREA
<br />WATER AUTHORITY THAT:
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<br />Section 1. CERTAIN DEFINITIONS. When used in this Resolution, except in Section 3, in addition to
<br />terms defined elsewhere herein, the terms listed below shall have the meanings indicated opposite each of them,
<br />unless otherwise expressly provided or unless the context otherwise requires:
<br />
<br />"Accountant" means an independent certified public accountant, or an independent firm of certified public
<br />accountants, either case, with demonstrative experience and competence in public accounting, appointed from time
<br />to time by the Board.
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<br />"Act" has the meaning assigned in the preamble.
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