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<br />(b) Covenants Rel!ardinl! Sale. Lease. or Disoosition of Financed Prooertv. The Authority covenants that
<br />the Authority will regulate the use of the property fmanced, directly or indirectly, with the proceeds of the Refunded
<br />Bonds and will not sell, lease, or otherwise dispose of such property unless (i) the Authority takes the remedial
<br />measures as may be required by the Code and the regulations and rulings thereunder in order to preserve the
<br />exclusion from gross income of interest on the Bonds under section 103 of the Code or (ii) the Authority seeks the
<br />advice of nationally-recognized bond counsel with respect to such sale, lease, or other disposition.
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<br />Section 10. LIMITED OBUGA TIONS. The Bonds are special obligations of the Authority payable solely
<br />from the revenues and funds pledged hereunder, and the registered owners thereof shall never have the right to
<br />demand payment thereof out of any other revenues or properties of the Authority, or out of funds raised or to be
<br />raised by taxation by the Authority, the Participants, the State of Texas, or any subdivision of any of them.
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<br />Section 11. DEFAULT PROVISIONS.
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<br />11.01. Remedies of Rel1istered Owners. In addition to all rights and remedies of any registered owner of
<br />the Bonds provided by the laws of the State of Texas, the Authority and the Board covenant and agree that in the
<br />event the Authority defaults in the payment of the principal of or interest on any of the Bonds when due, fails to
<br />make the payments required by this Resolution to be made into the Bond Fund, or defaults in the observance or
<br />performance of any of the covenants, conditions, or obligations set forth in this Resolution, the registered owner of
<br />any of tlie Bonds shall be entitled to a writ of mandamus issued by a court of proper-jurisdiction compelling and
<br />requiring the Board and other officers of the Authority to observe and perform any covenant, obligation, or
<br />condition prescribed in this Resolution. No delay or omission by any registered owner to exercise any right or
<br />power accruing to him upon default shall impair any such right or power, or shall be construed to be a waiver of any
<br />such default or acquiescence therein, and every such right or power may be exercised from time to time and as often
<br />as may be deemed expedient. The specific remedies mentioned in this Resolution shall be available to any
<br />registered owner of any of the Bonds and shall be cumulative of all other existing remedies. In no event, however,
<br />shall acceleration of the maturities of the Bonds be an available remedy.
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<br />11.02. Resolution is Contract. In consideration of the purchase and the acceptance of the Bonds authorized
<br />to be issued hereunder by those who shall hold the same from time to time, the provisions of this Resolution shall be
<br />deemed to be and shall constitute a contract between the Authority and the registered owners of the Bonds, and the
<br />covenants and agreements herein set forth to be performed on behalf of the Authority shall be for the equal benefit,
<br />protection, and security of the registered owners of any and all of the Bonds, all of which, regardless of the time or
<br />times of their issue or maturity, shall be of equal rank without preference, priority, or distinction except as expressly
<br />provided herein.
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<br />Section 12. DEFEASANCE OF THE BONDS. (a) Any Bond and the interest thereon shall be deemed to
<br />be paid, retired, and no longer outstanding (a "Defeased Bond") within the meaning of this Resolution, except to the
<br />extent provided in subsection (d) of this Section, when payment of the principal of and premium, if any, on such
<br />Bond, plus interest thereon to the due date (whether such due date be by reason of maturity, upon redemption, or
<br />otherwise) either (i) shall have been made or caused to be made in accordance with the terms thereof (including the
<br />giving of any required notice of redemption), or (ii) shall have been provided for on or before such due date by
<br />irrevocably depositing with or making available to the Paying AgentlRegistrar for such payment (A) lawful money
<br />of the United States of America suffIcient to make such payment or (B) Defeasance Obligations which mature as to
<br />principal and interest in such amounts and at such time as will insure the availability of sufficient money to provide
<br />for such payment, and when proper arrangements have been made by the Authority with the Paying AgentlRegistrar
<br />for the payment of its services until all Defeased Bonds shall have become due and payable. At such time as a Bond
<br />shall be deemed to be a Defeased Bond hereunder, as aforesaid, such Bond and the interest thereon shall no longer
<br />be secured by, payable from, or entitled to the benefits of, the revenue herein levied and pledged as provided in this
<br />Resolution, and such principal and interest shall be payable solely from such money or Defeasance Obligations.
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<br />(b)Any money so deposited with the Paying AgentlRegistrar may at the written direction of the Authority
<br />also be invested as hereinbefore set forth, and all income from such Defeasance Obligations received by the Paying
<br />AgentlRegistraf which is not required for the payment of the Bonds and interest thereon, with respect to which such
<br />money has been so deposited, shall be turned over to the Authority, or deposited as directed in writing by the
<br />Authority.
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