1999-09-08 Special Called Regular Meeting, Public Hearing, and Workshop Meeting

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. e I hereby certify that this Bond has been examined, certified as to validity, and approved by the Attorney General of the State of Texas, and that this Bond has been registered by the Comptroller of Public Accounts of the State of Texas. Witness my signature and seal this Comptroller of Public Accounts of the State of Texas COMPTROLLER'S SEAL [END OF FORMS] Section 4. APPLICATION OF BOND PROCEEDS AND OTHER MONEY. Proceeds from the sale of the Bonds will be disbursed in accordance with this Section. $ $ shall be deposited to the Escrow Fund, and shall be deposited to the Bond Fund as accrued interest. The Authority hereby appropriates $ from the Bond Fund for the Refunded Bonds available funds for deposit into the Escrow Fund to pay the principal of the Refunded Bonds and the interest thereon to December 1, 1999. The Authority will pay all costs of issuance from available funds. Section 5. PLEDGE. The Parity Bonds, redemption premium, if any, and any interest payable thereon, are and shall be secured by and payable from a lien on and pledge of the Pledged Revenues, and the Pledged Revenues are further pledged irrevocably to the establishment and maintenance of the Funds created by this Resolution. The Parity Bonds are not and will not be secured by or payable from a mortgage or deed of trust on any real, personal, or mixed properties constituting the System. The registered owner of the Parity Bonds shall never have the right to demand payment of such obligations out of any funds raised or to be raised by taxation, or from any source whatsoever other than the Pledged Revenues. This Resolution shall not be construed as requiring the Authority to expend any funds which are derived from sources other than the operation of the System, but nothing herein shall be construed as preventing the Authority from doing so. Section 6. RATES. The Authority covenants and agrees with the holders of the Parity Bonds that it will: (a) subject to any restrictions in the Water Sales Contracts, fIx and maintain rates and collect charges for the facilities and services afforded by the System which will provide revenues suffIcient at all times (i) to pay all Operating Expenses; (ii) to establish and maintain the Bond Fund; and (iii) to pay all indebtedness outstanding against the System, other than the Parity Bonds, as and when the same become due; and (b) deposit as collected all Gross Revenues into the Revenue Fund. Section 7. FUNDS AND REVENUES. 7.01. Creation of Funds. All Revenues shall be kept separate and apart from all other funds of the Authority, and the following special funds ("Funds") shall be established and maintained in an official depository bank or depository banks of the Authority so long as any of the Parity Bonds, or interest thereon, are outstanding and unpaid: (a) La Porte Area Water Authority Revenue Fund (the "Revenue Fund"); (b) La Porte Area Water Authority Bond Fund (the "Bond Fund"); (c) La Porte Area Water Authority Reserve Fund (the "Reserve Fund"); and (d) La Porte Area Water Authority Escrow Fund (the "Escrow Fund"). 14