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<br />DESCRIPTION OF REVENUE BONDS
<br />$6,000,000
<br />CITY OF LA PORTE, TEXAS
<br />(Harris County)
<br />WATERWORKS AND SEWER SYSTEM REVENUE BONDS
<br />SERIES 1985
<br />The Bonds will be dated September 15, 1985 and interest on the Bonds will be due on
<br />March 15, 1986, and each September 15 and March 15 thereafter until the earlier of
<br />maturity or prior redemption. The Bonds will be issued in fully registered form in
<br />integral multiples of $5,000, and principal and semi-annual interest will be payable
<br />by the First City National Bank of Housotn, Houston, Texas, the paying agent/registrar
<br />(the "Registrar"). Principal of the Bonds will be payable to the registered owner at
<br />maturity or redemption upon presentation of such Bonds to the Registrar. Interest on
<br />the Bonds will be payable by check or draft, dated as of the interest payment date,
<br />and mailed by the Registrar to registered owners as shown on the records of the
<br />Registrar as of the last business day of the month next preceding each interest
<br />payment date.
<br />March 15
<br />Maturity Schedule
<br />Year Amount Year Amount Year Amount
<br />1986 $300,000 1993 $300,000 2000 $300,000
<br />1987 300,000 1994 300,000 2001 300,000
<br />1988 300,000 1995 300,000 2002 300,000
<br />1989 300,000 1996 300,000 2003 300,000
<br />1990 300,000 1997 300,000 2004 300,000
<br />1991 300,000 1998 300,000 2005 300,000
<br />1992 300,000 1999 300,000
<br />Optional Provisions
<br />All Bonds maturing on or after March 15, 1996 are optional for redemption in whole or
<br />in part on March 15, 1995 or any interest payment date thereafter at par and accrued
<br />interest to the date fixed for redemption. If less than all of the Bonds are redeemed
<br />at any time, the particular Bonds to be redeemed shall be selected by the City in
<br />integral multiples of $5,000 within any one maturity. The registered owner of any
<br />Bond, all or a portion of which has been called for redemption, shall be required to
<br />present same to the Registrar for payment of the redemption price on the portion of
<br />the Bond so called for redemption and a new Bond in the principal amount equal to the
<br />portion of such Bond not redeemed will be issued to such registered owner.
<br />Authorization
<br />These $6,000,000 Bonds are the first installment sale out of $9,350,000 Revenue Bonds
<br />approved at an election held on June 15, 1985 by a majority of the votes cast as
<br />follows:
<br />Amount Purpose For Against
<br />$ 800,000 Waterworks System Improvements 614 208
<br />8,550,000 Sanitary Sewer System Improvements 620 198
<br />$9,350,000
<br />Use of Proceeds
<br />The proceeds from the sale of these $6,000,000 Bonds will be used for sewer system
<br />improvements. After the issuance and sale of the Bonds, there will remain $3,350,000
<br />Revenue Bonds authorized but unissued.
<br />Security
<br />These Bonds; in~the opinion of Counsel, will constitute valid and legally binding
<br />special obligations of the City of La Porte, Texas, payable from and secured by a
<br />first lien on and pledge of the revenues derived from the operation of the City's
<br />Wateworks and Sewer System, after deduction of the reasonable expenses of maintenance
<br />and operation of said system. The holder or holders of the Bonds shall never have the
<br />right to demand payment of the principal and interest on the Bonds out of any funds
<br />raised or to be raised by taxation.
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