03-10-10 Regular Meeting of the La Porte Area Water Authority

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ARTICLE EIGHT DEFEASANCE SECTION 8.1. Defeasance. The Authority may defease the provisions of this Resolution and discharge its obligations to the Holders of any or all of the Bonds to pay the principal of and interest thereon in any manner now or hereafter permitted by law, including by depositing with the Paying Agent/Registrar or with the Comptroller of Public Accounts of the State of Texas either: A. cash in an amount equal to the principal amount of such Bonds plus interest thereon to the date of maturity; or B. pursuant to an escrow or trust agreement, cash and/or Defeasance Obligations, which may be in book-entry form, and the principal of and interest on which will, when due or redeemable at the option of the holder, without further investment or reinvestment of either the principal amount thereof or the interest earnings thereon, provide money in an amount which, together with other moneys, if any, held in such escrow at the same time and available for such purpose, shall be sufficient to provide for the timely payment of the principal of and interest thereon to the date of maturity. Upon such deposit, such Bonds shall no longer be regarded to be Outstanding or unpaid. Any surplus amounts not required to accomplish such defeasance shall be returned to the Authority. ARTICLE NINE SALE AND ISSUANCE OF BONDS; OTHER COVENANTS SECTION 9.1. Sale of the Bonds. The sale of the Bonds to (the "Purchaser") at a price of the par value thereof, plus a cash premium of $ plus accrued interest on the Bonds, is hereby approved, and delivery of the Bonds to the Purchaser shall be made upon payment therefor in accordance with the terms of sale and the terms and conditions of the Purchaser's bid, attached hereto as Exhibit C. It is hereby officially found, determined and declared that the Purchaser is the highest bidder for the Bonds as a result of invitations for competitive bids. It is further officially found, determined and declared that the Bonds have been sold at public sale to the bidder offering the lowest interest cost, which is hereby determined to be a net effective interest rate of %, after receiving sealed bids pursuant to an Official Notice of Sale and Preliminary Official Statement prepared and distributed in connection with the sale of the Bonds. The President, Vice President and Secretary of the Authority, or any of them, are hereby authorized and directed to furnish such information, execute such instruments, and take such action as is necessary to comply with the terms, conditions, and agreements specified in the Official Notice of Sale or the Purchaser's Bid or to effect issuance of the Bonds. 32 HOU:3003369.1