2002-07-22 Regular Meeting and Workshop Meeting

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e e FORM OF REGISTRATION CERTIFICATE OF THE COMPTROLLER OF PUBLIC ACCOUNTS* *To be printed or attached to Initial Bond only COMPTROLLER'S REGISTRATIQN CERTIFICATE: REGISTER NO. I hereby certit)' that this Bond has been examined, certified as to validity, and approved by the Attorney G~n~al of the State of T exa~, 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'S SEAL Comptroller of Public Accounts of the State of Texas [END OF FORMS] Section 5. TAX LEVY. A special Interest and Sinking Fund (the "Interest and Sinking Fund") is hereby crei;lted solely for the benefit of the Bonds, and the Interest and Sinking Fund shall be established and maintained by the City at an official depository bank of the City. The Interest and Sinking Fund shall be kept separate and apart from i;l11 other funds and accounts of the City, and shall be used only for p_aying the interest on and principal of the Bonds. All ad valorem taxes levied and collected for and on account of the Bonds shall be deposited, as collected, to the cr~dit of the Interest i;lIlq Sinking Fund. During each year while any of the Bonds or interest thereon are outstanding and unpaid, the Council shall compute and ascertain a rate and amount of ad valorem tax which will be sufficient to reVse and produce the money required to Qay the interest on the Bonds as such interest comes due, and to provide and maintain a sinking fund adequate to pay the principal of its Bonds as such principal matures (but never less than 2% ofth~ original principal amolIDt of said Bonqs as a sinking fund each year); and said tax shall be based on the latest approved tax rolls of the City, with full allowance being made for tax delinquencies and the cost of tax collection, Said ri;lte and amount of ad valorem tax is hereby levied, and is hereby ordered to be levied, against all taxable property in the City for each year while any of the Bonds or interest thereon are outstanding and QIlpaiq; anq said tax shall be assessed and collected each such year and deposited to the credit of the aforesaid Interest and Sinking FlIDd. Said ad valorem taxes sufficient to provide for the payment of the interest on and principal of the Bonds, as such interest comes que and such principal matures, are hereby pledged for such payment, within the limit prescribed by law. Section 6, PEFECTED SECURITY INTEREST. Chapter 1208, Texas Government Code, applies to the issuance of the Bonds and th~ pledge of the taxeG granted by the City under this Ordinarlce and such pledge is, t1H,:r((fore, valid, effective, and {?erfected. Should Texas law be amended at any time while the Bonds are outstanding and unpaid, the result of such amendment being that the pledge of the taxes granted by the City under this Orqinance is to be subject to the filing requirements of ChaQter 9, Texas Business & Commerce Code, in order to preserve to the Registered Owners of the Bonds a security interest in such pledge, the City agrees to take such measures as it determines are reasonable i;lIld necessary to enable a filing of a seC\ITity interest in said pledge to occur . Section 7. DISPOSITION OF BOND PROCEEDS. The proceeds of the Bonds shall be placed into the Interest and Sinking Fund and the Construction Fund of the City as follows: (a) Interest and Sinkin~ Fund. An amount equal to the accrued interest on the Bonds from the date of the Bonds to the date of delivery to the Initial Purchasers shall be deposited in the Interest and Sinking Fund. (b) Construction Fund. The proceeds of the Bonds remaining after the above described deposit into the Interest and Sinking Fund shall be placed in the Construction Fund (hereby created) to be used by the City for the 12~oses described in this Ordinance. 063939.0001 AUSTIN 280348 9