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HomeMy WebLinkAboutRES 052615-P - GTEC Refund Bondst4 V I a Col.1% 9 no all) 'A THE STATE OF TEXAS § COUNTY OF WILLIAMSON § CITY OF GEORGETOWN § We, the undersigned officers and members of the City of Georgetown, Texas (the "City"), hereby certify as follows: I . The City Council of the City convened in a REGULAR MEETING ON THE 26TH DAY OF MAY, 2015 ' at the City Hall (the "Meetingand the roll was called of the duly constituted officers and members of the City, to -wit: Dale Ross, Mayor Keith Brainard, Mayor Pro Tem, Councilmember District 2 Anna Eby, Councilmember District I John Hesser, Councilmember District 3 Steve Fought, Councilmember District 4 Ty Gipson, Councilmember District 5 Rachael Jonrowe, Councilmember District 6 Tommy Gonzalez, Councilmember District 7 ITWO and all of the persons were present, except the following absentees: thus constituting a quorum. Whereupon, among other business, the following was transacted at the Meeting: a written I'M IS 11 wo an 19 Ye -1 k"'1111-01 IKII ley, 140 ! We Mmq I! lip NO RI'm -, MV, WAIIEW. halmalpitauTirmovolt .4 D1 w-4 I D11 i was duly introduced for the consideration of the City Council. It was then duly moved and seconded that the Resolution be passed; and, after due discussion, said motion carrying with it the passage of the Resolution, prevailed and carried by the following vote: AYES: NOES: 2. A true, full and correct copy of the Resolution passed at the Meeting described in the above and foregoing paragraph is attached to and follows this Certificate; that the Resolution has been duly recorded in the City Council's minutes of the Meeting; that the above and foregoing paragraph is a true, full and correct excerpt from the City Council's minutes of the Meeting pertaining to the passage of the Resolution; that the persons named in the above and foregoing paragraph are the duly chosen, qualified and acting officers and members of the City GTEC\Refg\2015: CityApprovingResCert Council as indicated therein; that each of the officers and members of the City Council was dulm and sufficiently notified officially and personally, in advance, of the time, place and purpose the Meeting, and that the Resolution would be introduced and considered for passage at t Meeting, and each of the officers and members consented, in advance, to the holding of t Meeting for such purpose, and that the Meeting was • to the public and public notice: •' t time, place and purpose of the meeting was given, all as required by Chapter 551, Gove me] Code, as amended. ETEC: CityApprovingResCeri Sigpg I Im"I ME, I " - I -s 6 Gt cretary ow- GTEC: CityApprovingResCert Sigpg STATE OF TEXAS COUNTY OF WILLIAMSON CITY OF GEORGETOWN created under the auspices ot the City ot (jeorgetown, Texas ("the Citypursuant to Nection 4 of the Development Corporation Act of 1979, as amended now codified as Local Governme Code, Title 12, Subtitle C, particularly Chapter 501 and 505 of the Local Government Co (collectively, the "Act"); and WHEREAS, at an election held on May 5, 2001, a majority of the czens of the City voting at said election authorized the City to levy a sales and use tax on the receipts at retail of taxable items within the City at a rate of one-half of one percent; and WHEREAS, the Issuer has determined to issue bonds to provide funds to refund for de service savings its outstanding bonds; and i WHEREAS, on May 20, 2015the Board of Directors of the Issuer adopted a resolutio attached hereto as Exhibit "A", which authorizes the issuance of not to exceed $8,750,000 principal amount of Senior Lien Sales Tax Revenue Refunding Bonds, Series 2015 (the "Bonds' for the purpose of providing funds for (i) refunding the outstanding bonds and (ii) paying the cos of issuing the Bonds-, and 11 WHEREAS, in accordance with the provisions of the Act the City shall timely transfer the Issuer the proceeds of the aforesaid sales and use tax, in accordance with the tenns• conditions of that certain Sales Tax Remittance A reement, dated as of Avril 25. 2006 as amend and restated as of April 10, 2007, between the City and the Issuer; and WHEREAS, it is deemed necessary and advisable that this Resolution be adopted by the City Council of the City (hereinafter referred to as the "City Council"). THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS THAT - 9 Ime MISSION GTEC\Refg2015: CityApprovingRes E= approve MR pursuant thereto for the purpose of refunding the outstanding bonds and paying the costs of issuance. Section 2. Execution of Documents; No LiabilitV of the Ci!j. The City Council of the City hereby authorizes the Mayor, the City Manager, the Assistant City Manager and the City Secretary to execute on behalf of the City all documents deemed necessary in connection with the issuance of the Bonds and the agreements approved by this Resolution. The City shall have no liability for the payment of the Bonds nor shall any of its assets be pledged to the payment of ths Bonds. Section 3. Incorporation of Recitals. The findings and preambles set forth in th Resolution are hereby incorporated into this Resolution and made a part hereof for a] i Section 4. Effective Date. This Resolution shall become effective immediately upon GTEC\Refg2015: CityApprovingRes Mayor, Dale Ross City of Georgetown, Texas NSE���M mmmmt#��� City Attorney, BAdget Vhapman GTEC\Refg20 15: CityApprovingRes 10.144,115, ETEC: CityApprovingRes A-1 Eli 01 R I 1511711" i I!,1111[ii 5,11"i'lill 111111 � THE STATE OF TEXAS § COUNTY OF WILLIAMSON § GEORGETOWN TRANSPORTATION ENHANCEMENT CORPORATION § We, the undersigned officers and members of the Georgetown Transportation Enhancement Corporation (the "Corporation"), hereby certify as follows: 1. The Board of Directors of the Corporation (the "Board") convened in a REGULAR MEETING ON THE 20th DAY OF MAY, 2015, at the Georgetown Municipal Complex (the "Meeting"), and the roll was called of the duly constituted officers and members of the Corporation, to -wit. Bill Connor, President Tom Crawford, Vice President Joe Pondrom, Secretary John Hesser, Director Jerry Hammerlun, Director Tommy Gonzalez, Director Leo Wood, Director and all of the persons were present, except the following absentees: Jerry Hammerlun, thus constituting a quorum. Whereupon, among other business, the following was transacted at the Meeting: a written was duly introduced for the consideration of the Board. It was then duly moved and seconded that the Resolution be passed; and, after due discussion, said motion carrying with it the passage of the Resolution, prevailed and carried by the following vote: GTEC\SrLienRevRefg12015: BondResCert I =eilvyu Ulu 157-Uguill— U11=0 (I to AIU 10110ITTS LIUS I-XRUIQULCUIUL LIM has been duly recorded in the Board's minutes of the Meeting; that the above and foregoing paragraph is a true, full and correct excerpt from the Board's minutes of the Meeting •- to the passage of the Resolution; that the persons named in the above oregoing paragrap are the duly chosen, qualified and acting officers and members of the Board as indicated therein; that each of the officers and members of the Board was duly and sufficiently notified officially and personally, in advance, • the time, place and purpose • the Meeting, and that the Resolution would be introduced and considered for passage at the Meeting, and each of the • and members consented, in advance, to the holding •. the Meeting • such purpose, and that the Meeting was open to the public and public notice of the time, place and purpose of the meeting was given, all as required by Chapter 5 5 1, Government Code, as amended. GTEC\SrLienRevRefg\2015: BondResCert Secretary Em GTEC\SrLienRevRefg\2015: BondResCert President rel DILTA i! i TICIN v b' pi! ! R i Il 16' I 1 !` • i r ! r I 'a I r• R i i i 1: R � r •. I r i i' I i!i 1 ito R al MAN V Well i ' ! i 1 9,11 Lu Adopted May 2, 2015 GTEC1SrLienRevRefgl2015: BondRes e e 1 i� 1 r �' [t■� �; ril lrii :i 1 1 F ! Section 2. DESIGNATION OF BONDS Section 'i FORM 1 1 t, Section PLEDGE 1 Section 6. SPECIAL FUNDS ......... ........................................................................... 11 Section 7. REVENUE FUND Section 8. FLOWOF 1 Section '' DEBT SERVICE!' Section 1. RESERVE T Section OPERATING ` 1 Section 12. TRANSFER '' Section 14. FUNDS SEC ............................... . ........................... ..................1 Section15. PAYMENT ...................................................................................................,15 • � � � 1 ' 1 is ' GTEG\SrLienRevRefgl2015: BondRes Section 19. GENERAL COVENANTS ............................................................................. I ...... 13 Seclon20, ...................... ................................ . ............... I't Section 21. DAMAGED, MUTILATED, LOST, STOLEN, OR DESTROYED BONDS ........................................................................................... 15 Section 22. CUSTODY, APPROVAL, AND REGISTRATION OF BONDS; BOND COUNSEL'S OPINION; CUSIP NUMBERS AND BOND INSURANCE, IFOBTAINED ................................................................................................ I ..... 16 ,] alkyj I tit] I I Section 29. FURTHER ACTIONS ............................................................................................ 28 Section 32. INTERPRETATIONS ............................................................................................ U �,ection 33. INCONSISTENT PROVISIONS .......................................................... v .............. :m Section 34. INTERESTED PARTIES ..................................... I ... I .......................................... I u Section 35. INCORPORATION OF RECITALS ................................................................... 31 Section 36. SEVERABILITY .................................................................................................... Section 37. REPEALER ................................... i ................................................................ i ..... I Section 38. EFFECTIVE DATE ......................................................... ............. ............... .... I GTEC\SrLienRevRefg12015: BondRes ii Section39, PREAMLE ..................................................... .................................................... 31 EXHIBIT A - Definitions EXHIBIT B — Form of Bond EXHIBIT C — Description of Annual Financial Informatill GTEC1SrLienRevRefg\2015: BondRes iii THE STATE OF TEXAS § GEORGETOWN TRANSPORTATION ENHANCEMENT CORPORATION § WHEREAS, pursuant to Section 4B of the Development Corporation Act of 1979, Article 5190.6, Vernon's Annotated Texas Civil Statutes now codified as Local Government Code, Title 12, Subtitle C, particularly Chapters 501 and 505 o the Local Government o e (collectively, the "Act"), a majority of the citizens of the City of Georgetown, Texas (the "City") voting at an election held on May 5, 2001 (the "Election") authorized the City to levy a sales and use tax on the receipts at retail of taxable items within the City at a rate of one-half of one percent for the benefit of a development corporation operating on behalf of the City to be used for project costs for streets, roads, drainage and other transportation system improvements including the payment of maintenance and operating expenses associated with such authorized projects-, and WHEREAS, pursuant to the provisions of the Act the City created the Georgetown Transportation Enhancement Corporation (the "Issuera nonstock, nonprofit industrial development corporation created to act on behalf of the Issuer to satisfy the public purposes set forth in the Act as authorized at the Election, and WHEREAS, the Board of Directors of the Issuer (the "Board") hereby finds and determines that the issuance of the Bonds (as defined herein) in accordance with the Act to refund the Refunded Obli - ations . as defined 'in Exhibit "A" attached hereto, is in the best interest of the Issuer; and WHEREAS, after issuance, the Bonds will be the only series of Parity Obligations outstanding; and Ony 1,41110001 %W In 9 11105 Biel IM MINOR] 010 1 211gy Imei kmm: I Luen V GTEC\SrLienRevRefg12015: BondRes exceed the amount authorized in Section 3, which shall be sufficient to provide for the purposes for which the Bonds are authofized and to pay the costs of issuing the Bonds. To achieve advantageous borrowing costs for the Issuer, the Bonds shall be sold on a negotiated, placement or competitive basis as determined by the Pricing Officer in the Pricing Certificate. In determining whether to sell the Bonds by negotiated, placement or competitive ale th Pn*cin Officer hall tak•acco in terial disclosure issues which WNW placement, with the underwriters or placement purchasers at such price, with and subject to such terms as determined by the Pricing Officer pursuant to this Section 2(b) above. The Board determines that the delegation of the authority to the Pricing Officer to approve the final terms and conditions of the Bonds as set forth in this Resolution is, and the decisions made by the Pricing Officer pursuant to such delegated authority and incorporated in the Pricing Certificate will be, in the best interests and shall have the same force and effect as if su h rmi ffielerr-M,—her authe,,ized4&Taa1k-j--- Date, plus the portion of the difference between such amount and the amount set forth • the Accretion Table with respect to the next succeeding Compounding Date that the number of days (based on 30 -day months) from such last preceding Compounding Date to the date for which such determination is being calculated bears to the total number of days (based on 30 -day months) from such last preceding Compounding Date to the next succeeding Compounding Date. conditional upon the satisfaction of such prerequisites and receipt of such moneys by the Paying Agent/Registrar on or prior to the date fixed for such redemption, or upon any prerequisite set forth in such notice of redemption. If a conditional notice of redemption is given and such prerequisites to the redemption and sufficient moneys are not received, such notice shall be of no force and effect, the issuer shall not redeem such Bonds and the Paying Agent/Registrar shall give notice, in the manner in which the notice of redemption was given, to the effect that the Bonds have not been redeemed. Section 3. CHARACTERISTICS OF THE BONDS. (a) The Issuer shall keep or cause to be kept at the designated office for payment of the Paying Agent/Registrar the Registration Books, and the Issuer hereby appoints the Paying Agent/Registrar as its registrar and transfer agent to keep such books or records and make such registrations of transfers and exchanges under such reasonable regulations as the Issuer and Paying Agent/Registrar may prescribe, and the Paying Agent/Registrar shall make such registrations, transfers and exchanges as herein provided. law, shall not permit their inspection by any other entity. The Paying Agent/Registrar's standard or customary fees and charges for making such registration, transfer, exchange and delivery of a substitute Bond or Bonds shall be paid as provided in the FORM OF BOND set forth in Exhibit "B" of this Resolution. Registration of assignments, transfers and exchanges of Bonds shall be i�a—de in the manner provided and with the effect stated *in the FORM OF BOND set forth in Exhibit "B" of this Resolution. Each substitute Bond shall bear a letter and/or number to distinguish it from each other Bond. initially were issued and delivered pursuant to this Resolution, approved by the Attorney General, and registered by the Comptroller of Public Accounts. (b) The Issuer hereby finther appoints the Paying Agent/Registrar to act as the paying agent for paying the principal of and interest on the Bonds, all as provided in this Resolution. The Paying Agent/Registrar shall keep proper records of all payments made by the Issuer and the Paying y• r.' with respect to the Bonds. # (d) The Issuer covenants with the Registered Owners of the Bonds that at all times while the Bonds are Outstandia the Issuer will provide a competent and legally qualified bank, trust company, financial institution, or other entity to act as and perform the services of Paying Agent/Registrar for the Bonds under this Resolution, and that the Paying Agent/Reeistrar will be one entity. The Issuer reserves the right to, and may, at its option, change the Paying A ent/Re 1 trar u on written notice to the Pavin, A ent/Re istrar in accordance with is S GTEC\SrLienRevRefg\2015: BondRes 6 (e) Except as provided below, no Bond shall •` valid or obligatory for any purpose or be entitled to any security or benefit of this Resolution unless and until there appears thereon the Certificate of Paying Agent/Registrar substantially in the form provided in this Resolution, duly authenticated by manual execution of the Paying Agent/Registrar. It shall not be required that the same authorized representative of the Paying Agent/Registrar sign the Certificate of Paying A-SIPM described above, the Initial Bond delivered • the closing •. shall have attached thereto the Comptroller's Registration Certificate substantially in the form provided in this Resol ion, manually executed by the Comptroller of Public Accounts of the State of Texas or by his duly authorized a which c -ertificate shall be evidence that the Initial Bond has been dulw aM:-,roved by the Attorney General of the State of Texas and that it is a valid and binding obligation of the Issuer, and has been registered by the Comptroller. (f) The Bonds issued in exchange for the Initial Bond shall be initially issued in the form of a single fully re istered Bond for each of the maturities thereof. Upon initial issuance the 91 *VVMr&_iP tf and except as provided in subsection hereof, all of the outstanding Bonds shall be registere.4- in the name of Cede & Co., as nominee of DTC. With respect to Bonds registered in the name of Cede & Co., as nominee of DTC,1 the Issuer and the Paying Agent/Registrar shall have no responsibility or obligation to any DTC Participant to hold securities to facilitate the clearance and settlement of securities transaction among DTC Partici ants or to any person on behalf of whom such a DTC Participant holds an ip interest in the Bonds. Without limiting the immediately preceding sentence, the Issuer and the Paying Agent/Registrar shall have no responsibility or obligation with respect to (1) the accuracy of the records of DTC, Cede & Co. or any DTC Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any DTC Participant • any • person, • than a eli-t.—Id h B n h n R 9i ion Book f t* ewithres ectto pie 4 0 "1011 on Mmr fff- III 04-WD71-TUCI -f4ftypt, The Paying Agent/Registrar shall pay all principal • and interest • the Bonds only to • upon the order of the Registered Owners, as shown in the Registration Books as provided in this Resolution, or their respective attorneys duly authorized in writing, and all such payments shall be valid and effective to fully satisfy and discharge the Issuer's obligations with respect to payment of principal of and interest on the Bonds to the extent of the sum or sums so paid. No person other than a Re istered Owner, as shown in the Registration Books, shall receive a Bond 91 certificate evidencing the obligation • the Issuer to make payments of principal and interest pursuant to this Resolution. Upon delivery by DTC to the Paying Agent/Registrar of written noJij i Zect J, 7"-", _j lotlt e' AAt_ GTEC\SrLienRevRefg\2015: BondRes 7 Registered Owner at the close of business on the Record Date, the words "Cede & Co." in this Resolution shall refer to such new nominee of DTC. (g) In the event that the Issuer determines that DTC is micapable of discharging its responsibilities described herein and in the representation letter of the Issuer to DTC • that it is in the best interest of the beneficial owners of the Bonds that they be able to obtain certificated Bonds th Is u r 11 a a a a Section 5. PLEDGE. (a) The Bonds and any interest payable thereon and any Additional Parity Obligations which may be issued in accordance herewith and any interest payable thereon, are and shall be secured by and payable from a first lien on and pledge of the GTF-C\SrLienRevRefg\2015: BondRes 8 Pledged Revenues, which lien on and pledge is prior in right and claim to the lien and pledge on the Pledged Revenues securing the payment of the outstanding Junior Lien Obligations and any Subordinate Lien Obligations hereafter issued-, and the Pledged Revenues are pledged to the establishment and maintenance of the Debt Service Fund and the Reserve Fund as hereinafter provided. The Bonds are and will be secured by and payable only from the Pledged Revenues and amounts on deposit *in the Debt Service Fund and the Reserve Fund, and not from amounts . !JFA9L4p# mortgage or deed of trust on any real, personal or mixed properties. (b) Chapter 1208.1 Government Code, applies to the issuance of the Bonds and the pledge of Pledged Revenues granted by the Issuer under this Resolution, and such pledge is therefore valid, effective and perfected. If Texas law is amended at any time while the Bonds are outstanding and unpaid such that the pledge of Pledged Revenues granted by the Issuer under this Resolution is to be subject to the filing requirements of Chapter 9, Business & Commerce Code, then in order to preserve to the Registered Owners of the Bonds the perfection of the security interest in said pledge, the Issuer agrees to take such measures as it determines are reasonable and necessary under Texas law to comply with the applicable provisions of Chapter 9, Business & Commerce Code and enable a filing to perfect the security interest in said pledge 4t Section 6. SPECIAL FUND. (a) The below listed currently existing special. Funds ar� hereby confirmed and shall be maintained on the books of the Issuer, so long as any of the Bonds are outstanding and unpaid: (i) Georgetown Transportation Enhancement Corporation Revenue Fund, hereinafter called the "Revenue Fund." (ii) Georgetown Transportation Enhancement Corporation Debt Service Fund, hereinafter called the "Debt Service Fund." (iii) Georgetown Transportation Enhancement Corporation Operating Fund, hereinafter called the "Operating Fund." (b) The following special Fund is hereby created and shall be established and maintained on the books of the Issuer pursuant to Section 11 hereof, so long as any of a are outstanding and unpaid: Georgetown Transportation Enhancement Corporation Senior Lien Sales Tax Revenue Bonds Reserve Fund, hereinafter called the "Reserve Fund." (c) Though all of such funds may be subaccounts of the City's Funds held by the Depository, and, as such, not held in separate bank accounts, such treatment shall not constitute a commingling of the monies in such Funds or of such Funds and the Issuer shall keep full and complete records indicating the monies and investments credited to each of such Funds. Section 7. REVENUE FUND. All Pledged Revenues shall be credited to the Revenue Fund immediately upon receipt as provided in the Transfer Agreement. GTEC\SrLienRevRefg\2015: BondRes 9 W W now or hereafter permitted by law. Section 9. DEBT SERVICE FUND. The Debt Service Fund is for the sole -Purpose of paying the principal of and interest on the Parity Obligations Outstanding at any time, as the same come due (including principal coming due as a result of any mandatory redemption of the Parity Obligations). The Issuer covenants that there shall be deposited into the Debt Service Fund prior to each principal and interest payment date from the Pledged Revenues an amount equal to one hundred per cent (100%) of the interest on and the principal of the Parity Obligations then falling due and payable. The required deposits to the Debt Service Fund for the payment of princi al of and interest on the Parity Obligations shall continue to be made as hereinabove provided until (i) the GTEC\SrLienRevRefg\2015-. BondRes 10 total amount on deposit in the Debt Service Fund and in each debt service reserve fund (excluding any Reserve Fund Obligations) for Parity Obligations is equal to the amount required to fully pay and discharge all Parity Obligations (principal and interest) then Outstanding or (ii) the Parity Obligations are no longer Outstanding. Section 10. RESERVE FUND, (a) For purposes of (i) paying the 'Principal of, premium, • interest on Bonds a any Additional Parity Obligations, , t a e.fe �,.a d d available • • amounts shall become due are insufficient and paying,or providing for payment of, the final principal amount of the Bonds and any Additional Parity Obligations, as applicable so that they are no longer deemed to be "Outstanding" as such term is defined herein, the Issuer hereby creates and establishes a special account known as the "Georgetown Transportation Enhancement Corporation Senior Lien Sales Tax Revenue Bonds Reserve Fund" (hereinafter referred toas the "Reserve Fund"), which account shall continue to be kept separate and apart from other fundsor t of the Issuer. The Issuer shall maintaint equal Required Reserve at all times in or held for the benefit of the Reserve Fund. During such time as the Reserve Fund contains the total Required Reserve, the Issuer may, at its option, withdraw any amount in the Reserve Fund in excess of the Required Reserve and deposit such surplus in the Revenue Fund. Any cash or investments purchased with such cash in _ Reserve e shall be drawn uponby - •, ..- . "- prior . any • as '' # Obligation• #-!• • held is ~'!`s of, _ Reserve Fund. Any Reserve Fund Obligations on deposit *in, or held for the benefit of, the Reserve Fund shall be drawn upon by the Paying Agent/Registrar on a pro rata basis and exhausted prior to making demand for payment under the Bond Insurance Policy provided for the Bonds under Section 1' ,: °' -. - #. ' - _ . '. # t _ e i ...._ a .:_.. .... ,' f _. - # : : • :: _. e < _.... _ : . ! : covenantsThe Issuer finther and agrees that, subjectonly • the payment of Bonds and payments to be made to the Debt Service Fund for the benefit of Parity Obligations and to the payments to be made on pro rata basis to all debt service reserve funds (including Reserve Fund) and any Reserve Fund Obligation Payments as provided by Section 9 hereof, the 0BondRes 11 such time as the Reserve Fund contains the Required serve Amount or (10 the Revenues in each of two conPledgedsecutive years have been equal to not less than 1.40 times the Average Annual Debt Service Requirements. (d) A Reserve Fund Obligation permitted under (a) above, must be in the fonn of a surety bond, insurance policy or similar instrument meeting the requirements described below. WIN W11MIUMIRMIMi U-21 -TV-77s; Mg-71711.7up-Mi NZ; ML FT 177T TIL, 111"I"T UTT jT1 CUE timely payment of debt service on the Parity Obligations (a "municipal bond insurer") if the claims paying ability of the issuer thereof shall be rated "AAA" or "Aad". respectively, by S&P or Moody's, or (ii) a surety bond or insurance policy issued to the Paying Agent/Registrar, as agent of the Holders, by an entity other than a municipal bond insurer, if the form and substance of such instrument and the issuer thereof shall be approved in writing by each Bond Insurer of record. its payment obligations thereunder, or (c) the claims paying ability of the issuer of the insurance policy or surety bond falls below "AAA" or "Aaa", by S&P and Moody's, respectively, the obligation to reimburse the issuer of the Reserve Fund Obligation shall be subordinated to the cash replenishment of the Reserve Fund. a 10,611gation in accuruance WIFLITT17, us 7151 Wir, period as will, when combined with the timing of required payment under the Reserve Fund Obligation, ensure payment under the Reserve Fund Obligation on or before the interest payment date) prior to each date upon which the principal of or interest on the Parity Obligations will be due. It is recognized that a Reserve Fund Obligation may be issued which is payable only with respect to a part of the Bonds and the Outstanding Parity Obligations with the remainder of the Required Reserve Amount being satisfied by monies and investments and in that case any draws upon the Reserve Fund will have to be made on a pro -rata basis to ensure that every Parity Obligation enjoys an equal amount of security. Therefore, (i) draws upon one or more such Reserve Fund Obligations shall be made on a pro -rata basis with cash and investments available in the Reserve Fund and de;�osits and credits to the Reserve Fund to restore it to: the Required Reserve Amount shall be utilized on a pro -rata basis to pay Reserve Fund Obligation Payments to reimburse the issuers of the Reserve Fund Obligations, thus restoring that part of the Required Reserve Amount, and to restore with cash and investments the balance of the Required Reserve Amount. Section 11. OPERATMG FUND. Amounts on deposit in the Operating Fund may be (i) applied to pay or redeem any Parity Obligations at the option of the Issuer, or (ii) applied for any other lawful purpose of the Issuer. GTEC\SrLienRevRefg\2015: DondRes 13 Section 12. TRANSFER.Pursuant to the provisions of ' • ` which is hereby reconfirmed and approved, the City has agreed to do any and all things necessary to accomplish the transfer of the Sales Tax collected for the benefit of the Issuer to the Revenue Fund on a monthly basis. The Transfer Agreement shall govern matters with respect to 4-ce collection of the Sales Taxes from the Com,,ttroller- credits and refands due and owingjoAhe- Comptroller , and other matters with respect to the collection and transfer of the Sales Tax. t The President anr the Secretaryof ` Board .,. hereby ordered a` ii any and all things necessary to accomplish the transfer of money to the Funds established hereby in ample time to pay the principal of and interest on the Bonds, Section 13. INVESTMENTS. Money in any Fund established by this Resolution may, at the option of Board, be invested in Permitted - provided investments shall be made in such manner that the moneyrequired to be to #.• from Fund will be available at the Proper time or times. Investment earnings realized on investments a le to the Debt Service Fund shall be retained therein and shall constitute a credit a •! ;°. •, ; _ star i!' . - - - •' _, • t Section 16. DEFICIENCIES - EXCESS PLEDGED REVENUES. (a) If on any occasion there shall not be sufficient Pledged Revenues (after making all payments pertaining to all Parity Obligations) to make the required deposits and credits to the Debt Service and the Reserve Fund, then such deficiency shall be cured as soon as possible from the next available f BondRes 14 unallocated Pledged Revenues, or from any other sources available for such purpose, and such deposits and credits shall be in addition to the amounts otherwise required to be deposited and credited to these Funds. (b) Subject to making the deposits and credits required by this Resolution and any Additional Parity Obligations Resolution, and the payments and credits required by the Ms ituthorizin the issuance of Junior LiemDbligations or Subordinate Lien Obligations hereafter issued by 6e Issuer, the excess Pledged Revenues may be used for any lawful purpose. Section 17. ADDITIONAL PARITY OBLIGATIONS. The Issuer shall have the right and power at any time and from time to time and in one or more series or issues., to authorize, in accordance an amount W a W We UUSL V1 DIN Of ME Dellel, We ISSLOr IS 1141L U1011 III (LCIU-J-IL obligation or agreement contained in this Resolution or any Additional Parity Obligations Resolution. (b) The Issuer has secured from a certified public accountant a certificate or opinion to the effect that, according to the books and records of the Issuer, the Pledged Revenues received by the Issuer for either (i) the last completed Fiscal Year next preceding the adoption of the Additional Parity Obligations Resolution or (ii) any twelve (12) consecutive months out of e adoption of the- Additional Parity ObligAlt—ionsL Resolution equal to not less than 1.25 times the Average Annual Debt Service Requirements for a 6 RATIO - (c) The Issuer may create and establish a debt service reserve fiind pursuant to the provisions of any Additional Parity Obligations Resolution for the purpose of securing that particular issue or series of Parity Obligations or any specific group of issues or series of Parity Obligations, including combining such fund with the Reserve Fund for the Bonds, and the amounts once deposited or credited to said debt service reserve fimds shall no longer constitute Pledged Revenues and shall be held solely for the benefit of the owners of the particular Parity Obligations for which such debt service reserve flind was established. Each such debt service reserve fund shall be designated in such manner as is necessary to identify the Parity Obligations GTEC\SrLienRevRefg\2015: BondRes 15 it secures and to distinguish such debt service reserve fund from the debt service reserve fLmds created for the benefit of other Parity Obligations. taken, and that the Bonds in the hands of the registered owners thereof are and will be valid and legally binding special obligations of the Issuer in accordance with their terms except as the enforceability thereof may be limited by bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws now or hereafter enacted relating to creditors' rights generally or by general principles of equity which permit the exercise ofjudicial discretion. (c) (i) The Issuer hereby • the earlier levy by the Issuer of the Sales Tax at the rate voted at the Election, and the Issuer hereby warrants and represents that the Issuer has duly and lawfully ordered the imposition and collection of the Sales Tax upon all sales, uses and as su7n Dounuanes existect on Me Me 7Y SMU UXUL1011 AJO-Wi-Mr-i time, GTEC\SrLienReYRefg\2015: BondRes 16 (ii) For so long as any Bonds are Outstanding, the Issuer covenants, agrees and warrants to take and pursue all action permissible under applicable law to cause the Sales Tax, at said rate or at a higher rate if permitted by applicable law, to be levied and collected continuously, in the manner and to the maximum extent permitted by applicable law, and to cause no reduction, abatement or exemption in the Sales Tax or rate of tax below the rate stated, confirmed and ordered in subsection (i) of this Section to be ordered or permitted so long as any Bonds shall remain Outstanding. (iii) If the City shall be authorized hereafter by applicable law to apply, impose and levy the Sales Tax on any taxable items or transactions that are not subject to the Sales Tax on the date of the adoption hereof, the Issuer, to the extent it legally may do so, hereby covenants ant agrees to use its best efforts to cause the Issuer to take such action as may be required by applicable law to subject such taxable items Or transactions to the Sales Tax. (iv) The Issuer agrees to take and pursue all action permissible under applicable law to cause the Sales Tax to be collected and remitted and deposited as herein required and as required b the Act, at the earliest and most frequent times permitted by applicable law. y (y) The Issuer agrees and covenants at all times to use its best efforts to cause the Issuer to comply with the Transfer Agreement. (d) It will keep proper books of record and account in which full, true and correct entries will be made of all dealings, activities and transactions relating to the Pledged Revenues and the Funds created pursuant to this Resolution, and all books, documents and vouchers relating thereto shall at all reasonable times be made available for inspection upon request of any bondholders, (e) It will maintain its corporate existence during the time that any Bonds are Outstanding hereunder. I privnin-IN OKI] M.Mel gi GTEC\SrLienRevRefg\2015: BondRes 17 (4). At such time as a Bond shall be deemed to be a Defeased Bond hereunder, as aforesaid, such Bond and the interest thereon shall no longer be secured by, payable from, or entitled to the benefits of, the ad valorem taxes herein levied as provided in this Resolution, and such principal issuer will have no further responsibility with respect to amounts available to such Paying Agent/Registrar (or other financial institution pen-nitted by applicable law) for the payment of such Defeased Bond, including any insufficiency therein caused by the failure of the Paying Agent/Registrar (or •other financial institution permitted by law) to receive payment when due on the Defeasance Securities. OTO ffM UTC OU011 UUPOSILCU U1 NUL W5141C 'ITIUI -T company or commercial bank pursuant to this Section for the payment of Bonds and such Bonds shall not have in fact been actually paid in full, no amendment of the provisions of this Section shall be made without the consent of the registered owner of each Bond affected thereby. (e) Notwithstanding the provisions of subsection (a) immediately above, to the extent that, upon the defeasance of any Defeased Bond to be paid at its maturity, the Issuer retains the right under Texas law to later call that Defeased Bond for redemption in accordance with the provisions of this Resolution, the Issuer may call such Defeased Bond for redemption upon complying with the provisions of Texas law and upon the satisfaction of the provisions of subsection (a) immediately above with respect to such Defeased Bond as though it was being defeased at the time of the exercise of the option to redeem the Defeased Bond and the effect of GTEC\SrLienRevRefg\2015: BondRes 18 �! f: # i.' . _ ba... #_ :1, - f,,,R • �,,. - is i. _. _ f".-. a.'..- •. _ e#.-,!` • _ _ i # • -. # . i. • ! � - # : •. _ `4 f _. ` . . " : ! '. - i •, i ..' - , - it ,:... l: 1 ff., , l' • �.# . .... _ •:,. i. .:.•'f ,.....i 1. • '. t M_ #...`i �.3'. i. _b _i ! _ ! � - _. • , • . •' t is «�- - #- . _ • r# # ,i #, a -! i• f • • ir# • !' _# fund,(1) to take any action to assure that no more than 10 percent of the proceeds of the Bonds or the Droiects financed or refinanced therewith (less amounts deposited to a reserve used for any "privatebusiness defined in section 141(b)(6) of the Code or, if more than 10 percent of the proceeds of the Bo s or the projects fin_ or refinanced therewith are ; used, such amounts, whetheror not received by the issuer, with respect to such private business use, do not, under the terms of this Resolution or any underlying arrangement, directly or indirectly, secure or provide for the payment of more than 10 percent of the debt service on the Bonds, in contravention of section141(b)(2) of ie GTEC\SrLienRevRefg12015: BondRes 20 (2) to take any action to assure that 'in the event that the "private business use" ,,-,-d 5 f fhe•mreeds of the Bonds or the W Gas acquire investment propus umineu in se=XM(6)7� a materially higher yield over the term of the Bonds, other than investment property acquired with -- (A) proceeds of the Bonds invested for a reasonable temporary period 3 years or less or, in the case of a refunding bond, for a period of 30 days, I (B) amounts invested in a bona fide debt service fund, within the inearil of section 1.148-1(b) of the Treasury Regulations, and (C) amounts deposited in any reasonably required reserve or replacemelM fund to the extent such amounts do not exceed 10 percent of the proceeds of Bonds; I (7) to otherwise restrict the use of the proceeds of the Bonds or amounts treated as proceeds of the Bonds, as may be necessary, so that the Bonds do not otherwise contravene the requirements of section 148 of the Code (relating to arbitrage) and, to the extent applicable, section 149(d) of the Code (relating to advance refimdings), and (8) to pay to the United States of America at least once during each five-year period (beginning on the date of delivery of the Bonds) an amount that is at least equal to 90 percent of the "Excess Earnings," within the meaning of section 148(f) of the Code and to pay to the United States of America, not later than 60 days after the Bonds have been paid in full, 100 percent of the amount then required to be paid as a result of Excess Earnings under section 148(f) of the Code. GTEC\SrLienRevRefg\2015BondRes 21 (b) Rebate Fund.. In order to facilitate compliance with the above covenant (8), a "Rebate Fund' is hereby established by the Issuer for the sole benefit of the United States of America, and such fund shall not be subject to the claim of any other person, including without limitation the bondholders. The Rebate Fund is established for the additional purpose of compliance with section 148 of the Code. Sol W 0 9 0 k COUrSe Snall I101 De LrCULCU US d M-011SUCLIOR rulou'Juiur --rm For purposes hereof, the Issuer shall not be obligated to comply with this covenant if it obtains an opinion of a nationally recognized bond counsel to the effect that such failure to comply will not adversely affect the excludability for federal income tax purposes from gross income of thi interest. Section 24. APPROVAL OF OFFERING DOCUMENTS, PAI'MIG AGENT/REGI8TRAR AGREEMENT AND ESCROW AGREEMENT. The Pricm*g Officer is hereby authorized to approve the Preliminary Official Statement, the Official Statement relating to the Bonds and any addenda, supplement or amendment thereto and to deem such documents final in accordance with Rule 15c2-12. The Issuer further approves the distribution of such Official Statement in the reoffening of the Bonds by the underwriters in final form, with such changes therein or additions thereto as the Pricing Officer executing the GTEC\SrLienRevRefg12015: BondRes 22 same may deem advisable, such determination to be conclusively evidenced by his execution thereof. i � I 11�� � gg�11111�11!1�jw' i 11117M i , I of this Resolution, being information designated by the Pricing Officer in the Pricing Certificate, including financial statements of the Issuer if audited financial statements of the Issuer are then available, and (2) if not provided as part of such financial information and operating data, audited financial statements of the Issuer, when and if available. Any financial statements to be provided shall be (i) prepared in accordance with the accounting principles described in Exhibit M� hereto, or such other accounting principles as the Issuer may be required to employ from time to time pursuant to state, law or regulation, and *in substantially the form included in the official statement, and (ii) audited, if the Issuer commissions an audit of such financial statements and the audit is completed within the period during which they must be provided, If not complete within -12 m• - b ecomes availar''- • • le ormation and operating data to be provided pursuant to this Section may be set forth in full in one or more documents or may be included by specific reference to any document that is available to the public on the MSRBs internet web site or filed with the SEC. All documents provided to the MSRB pursuant to this Section shall be accompanied by identifying information as prescribed by the MSRB. (b) Event Notices. The Issuer shall notify the MSRB, in an electronic • as prescribed by the MSRB, in a timely manner not in excess of ten business days after the occurrence of the event, of any of the following events with respect to the Bonds. B. Non-payment related defaults, if material within the meaning of the -•" securities laws-, C. Unscheduled draws on debt service reserves reflecting financial difficulties; D. Unscheduled draws on credit enhancements reflecting financial difficulties; E. Substitution of credit or liquidity providers, or their failure to perform; F. Adverse tax opimions, the issuance by the Internal • Service AN proposed • final determinations • taxability, Notices of Proposed Iss • Form 5701-TEB) • • material • or determinations wi I GTEC\SrLienRevRefg2g15: BondRes 24 respect to the tax status of the Bonds, or other events affecting the status of the Bonds; G. Modifications to rights • holders of the Bonds, if material within meaning • the f -t- :$ • de ond calls, if material within the meaning • the federal securities lal and tender offers; Release, substitution, or sale of property securing repayment of the Bond if material within the meaning of the federal securities laws-, I M. The consummation Of a merger, consolidation, or acquisition involving the Issuer or the sale of all • substantially all • the assets of the Issuer, •': than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material within the meaning of the federal securities laws; and N. Appointment of a successor or additional trustee or the change of -name of a trustee, if material within the meaning of the `•` securities laws, awmar, ksol - 1 9 - - I IN -01 - 11r-W.Uj-1&1fWV To ;i accordance with subsection (a) of this Section by the time required by such subsection. All documents provided to the MSRB pursuant to this Section shall be accompanied by identifying information as prescribed by the MSRB. (c) Limitations, Disclaimers, and Amendments. The Issuer shall be obligated to observe and perform the covenants specified in this Section for so long as, but only for so long as, the Issuer remains an "obligated person" with respect to the Bonds within the meaning of the Rule, except that the Issuer in any event will give notice of any de osit made in accordance with I p Section 21 of this Resolution that causes the Bonds no longer to be outstanding. The provisions of this Section are for the sole benefit of the holders and beneficial owners of the Bonds, and nothing in this Section, express or implied, shall give any benefit or any legal or equitable right, remedy, or claim hereunder to any other person. The Issuer undertakes to provide only the financial information, operating data, financial statements, and notices which it has expressly agreed to provide pursuant to this Section and does not hereby undertake to provide any •'' information that may be relevant or material to a complete GTEC\SrLienRevRefg\2015: :+ +' 25 presentation of the Issuer's financial results, condition, or prospects or hereby undertake to update any information provided in accordance with this Section or otherwise, except as expressly provided herein. The Issuer does not make any representation or warranty concerning such information or its usefulness to a decision to invest 'in or sell Bonds at any future date. MIMAM 61MM-111 No default by the Issuer in observing or performing its obligations under this Section wri-?160" this Resolution. GTEC\SrLienRevRefg12015: BondRes 26 (a) Events of Default. Each of the following occurrences or events for the purpose of this Resolution is hereby declared to be an Event of Default: (i) the failure to make payment of the priinci al of or interest on any of the Bonds IP when the same becomes due and payable; or (ii) default in the performance or observance of any other covenant, agreement or obligation of the issuer, the failure to perform which materially, adversely affects the rights of the Registered Owners of the Bonds, includmig, but not limited to, their prospect d of 60 days after notice of su default is given by any Registered Owner to the a peno ch Issuer. "Pil -W AW trustee or trustees therefor, may proceed against the Issuer, or any official, officer or employee of the Issuer in their official capacity, for the purpose of protecting and enforcing the rights of the Registered Owners under this Resolution, by mandamus or other suit, action or special proceeding in equity or at law, in any court of competent jurisdiction, for any relief permitted by law� 'including the specific performance of any 4 *vvitrw*tr unlawful or in violation of any night of the Registered Owners hereunder or any combination of such remedies. (ii) It is provided that all such proceedings shall be instituted and maintained for the equal benefit of all R's istered Owners of Bonds then outstanding. (c) Remedies Not Exclusive. (1) No remedy herein conferred or reserved is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or under the Bonds or now or hereafter existing at law or in eiuitvi Drovidedi however, that notwithstandin i any oiner provision o s esoiuilonuierigniLoac(;eierateine(ieot-e7,T'i(jenceuoi-Lrienoilas shall not be available as a remedy under this Resolution. (ii) The exercise of any remedy herein conferred or reserved shall not be deemU- a waiver of any other available remedy. (iii) By accepting the delivery of a Bond authorized under this Resolution, such Registered Owner agrees that the certifications required to effectuate any covenants or representations contained in this Resolution as not and shall never constitute or give rise GTEC\SrL1enRevRefg\20BondRes 27 the Issuer or the Issuer Council. M ulrj liminq, or ite Zia personauji iiaoie to Trie WegisTerea s ITTIUI 1 n ten provision of this Resolution, or because of any Event of Default or alleged Event of Default under this • pnncipat amount oY Tnenflusumuing TarlujvIsIngTaLions snan OYU Me ngm to time to approve any amendment to this Resolution which may be deemed necessary or desirable by the issuer, provided, however, that without the consent of the Bond Insurer and the registered owners of all of the effected Parity Obligations at the time outstanding, nothing herein contained shall permit or be construed to permit the amendment of the terms and conditions in this Resolution or in the Parity Obligations so as to: (ii) Reduce the rate of interest borne by any of the outstanding Parity Obligations; GTEC\SrLienRevRefg12015: BondRes 28 (iii) Reduce the amount of the principal payable on the outstanding Parity Obligations,* (iv) Modify the terms of payment of principal of or interest on the outstanding Parity Obligations or impose any conditions with respect to such payment; (v) Affect the rights of the registered owners of less than all of the Parity Obligations then outstanding; (vi) Change the minimum percentage of the principal amount of Parity Obligations necessary • •' to such amendment. For the purpose of this Section, the fact of the holding of Parity Obligations issued in registered form without coupons and the amounts and numbers of such Parity Obligations and the date of their holding same shall be proved by the Registration Books of the Paying Agent/Registrar. For purposes of this Section, the registered owner of a Parity Obligation in such reizistered form shall be the owner thereof as shown on such Registration Books. The issuer may conclusively assume that such ownership • until written • to the • is served •• the Issuer. I roler. Ito at -11MIM01 I MON a I I I ROW, (1) To add to the covenants and agreements of the Issuer in this Resolution contained, other covenants and agreements thereafter to be observed, grant additional rights or remedies to bondholders or to surrender, restrict or limit any right or power herein reserved to • conferred !• the Issuer; (2) To make such provisions for the purpose of curing any ambiguity, or curing, correcting or supplementing any defective provision contained in this Resolution, or in regard to clarifying matters or questions arising under this Resolution, as are neces M 01- not • to or inconsis "en with this Resolution and which shall not adversely affect the interests of the registered owners of the Parity Obligations-, (3) To make any changes or amendments requested by any Rating Agency, as a condition to the issuance or maintenance of a rating, which changes or amendments do not, 'in the judgment of the Issuer, materially adversely affect the interests of the owners of the outstanding Parity Obligations; (4) To make such changes, modifications or amendments as may be necessary or desirable, which shall not adversely affect the interests of the owners of the outstanding ELni,'JuVig 111ri'& i —ts, *e e-Yte-jt;1,e-,wtcbfed by law!,�� WN ��ITAQWI MIN (5) To modify any of the pro -visions of this Resolution in any other respect whatever, provided that (i) such modification shall be, and •` expressed to be, effective only after all Parity Obligations outstanding at the date of the adoption of such IM -2S9.4 �—� -SP�Aaal* referred to in the text of all Additional Parity Obligations issued after the date of the adoption of such modification. GTEC\SrLienRevRefg\2015: BondRes 30 publish such notice shall not adversely affect the implementation of such amendment as adopted pursuant to such amendatory resolution. Section 31. PAYMENT OF ATTORNEY GENERAL FEE. The Issuer hereby authorizes the disbursement of a fee equal to the lesser of (i) one-tenth of one percent of the principd amount of the Bonds or (ii) $9,500, provided that such fee shall not be less than $750, to the Attorney General of Texas Public Finance Division for payment of the examination fee 8 2izi 2FIe* and credit agreements, as required by Section 1202.004 of the Texas Government Code. The appropriate member of the Issuer's staff is hereby instructed to take the necessary measures to make this payment. The Issuer is also authorized to reimburse the appropriate funds for such payment from proceeds of the Bonds. Section 32. INTERPRETATIONS. All terms- defined heremi and all pronouns used in this Resolution shall be deemed to apply equally to singular and plural and to all genders. The titles and headings of the articles and sections of this Resolution and the Table of Contents of this Resolution have been inserted for convenience of reference only and are not to be considered a part hereof and shall not in any way modify or restrict any of the terms or provisions hereof This Resolution and all the terms and provisions hereof shall be liberally construed to effectuate the purposes set forth herein and to sustain the validity of the Bonds and the validity of the lien on and pledge of the Pledged Revenues to secure the payment of the Bonds. Section 33. INCONSISTENT PROVISIONS. All ordinances, orders or resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict and the provisions of this Resolution shall be and remain controlling as to the matters contained herein. Section 34. INTERESTED PARTIES. Nothing in this Resolution expressed or implied is intended or shall be construed to confer upon, or to give to, any person or eiitity, other than the Issuer and the Reaistered Owners of the Bonds, any right, remedy or claim under or by reason of this Resolution or any covenant, condition or stipulation hereof, and all covenants, stipulations, promises and agreements in this Resolution contained by and on behalf of the Issuer shall be for the sole and exclusive benefit of the Issuer and the registered owners of the Bonds. Section 35. INCORPORATION OF RECITALS. The issuer hereby finds that the statements set forth 'in the recitals of this Resolution are true and correct, and the Issuer hereby incorporates such recitals as apart of this Resolution. Section 36. SEVERABILITY. if any provision of this Resolution or the application thereof to any circumstance shall be held to be invalid, the remainder of this Resolution and the application thereof to other circumstances shall nevertheless be valid, and this governing body hereby declares that this Resolution would have been enacted without such invalid provision. Section 37. REPEALER. All orders, resolutions and ordinances, or parts thereof, inconsistent herewith are hereby repealed to the extent of such inconsistency. GTEC\SrLienRevRefg\2015: BondRes 31 Section 38. EFFECTIVE DATE. This Resolution shall become effective upon adoption by the issuer and approval by the Issuer. Section 39. PREAMBLE. The findigs and preambles set forth in this Resolution are hereby incorporated into this Resolution and made a part hereof for all purposes. ------------------------ GTEC\SrLienRevRefg12015: BondRes 32 As used in this Resolution, the following terms and expressions shall have the meanings set forth below, unless the text of this Resolution specifically indicates otherwise. "Act" shall mean the Development Corporation Act of 1979, Article 5190.6, V.A.T.C.S., as whe -1. "Additional Parity Obligations" shall mean bonds or other debt obligations authorized by law which the Issuer reserves the night to issue or enter into, as the case may be, in the future in accordance with the terms and conditions provided *in Section 18 of this Resolution and which, together with the Bonds, are equally and -ratably secured by a first lien on and pledge of the Pledged Revenues on a parity with the Bonds under the tenns of this Resolution and an Additional Parity Obligations Resolution. "Additional Parity Obligations Resolution" shall mean any resolution of the Board authorizing and providing the terms and provisions of the Additional Parity Obligations. "Amortization Installmentil means, with respect to any Term Bonds of any series of Parity Obligations, the amount of money which is required to be deposited into a mandatory redemption account for retirement of such Term Bonds (whether at maturity or by mandatory redemption and including redemption premium, if any) provided that the total Amortization Installments for such Term Bonds shall be sufficient to provide for retirement of the aggregate principal amount of such Term Bonds. "Annual Debt Service Requirements" means, as of the date of calculation, the principal of and interest on all Parity Obligations coming is at Maturity or Stated Maturity (or that could come due on demand of the owner thereof other than by acceleration or other demand conditioned upon default by the Issuer on such Debt, or be payable in respect of any required purchase of such Debt by the Issuer) in such Fiscal Year, and, for such purposes, any one or more of the following rules shall apply at the election of the Issuer: (a) if the princi al (including the accretion of interest resulting from original issue ip discount or compoundi of interest) of any series or issue of Funded Debt due (or mg payable in respect of any required purchase of such Funded Debt by the Issuer) in any Fiscal Year either is equal to at least 25% of the total principal (including the accretion of interest resulting from original issue discount or compounding of interest) of such Funded Debt or exceeds by more than 50% the greatest amount of principal of such series or issue of Funded Debt due 'in any preceding or succeeding Fiscal Year (such principal due in such Fiscal Year for such series or issue of Funded Debt being referred to herein and throughout this Resolution as "Balloon Debt"), the amount of principal of such Balloon Debt taken into account during any Fiscal Year shall be equal to the debt service calculated using the original rinci)2al amount of such Balloon Debt amortized over the GTEC\SrLienRevRefg\2015: BondRes A-1 Tenn of Issue on a level debt service basis at an assumed interest rate equal to the rate borne by such Balloon Debt on the date of calculation; (c) Principal of and interest on Parity Obligations, or portions thereof, shall not be included in the computation of the Annual Debt Service Requirements for any Fiscal Year for which such Drincipal or interest are p able from funds on dggosit or set 2L_ (d) As to any Parity Obligations that bear interest at a variable interest rate which cannot be ascertained at the time • calculation of the Annual Debt Service Requirement then, at the option of the Issuer, either (A) an interest rate equal to the average rate borne by such Parity Obligations (or by comparable debt in the event that such Parity O�b ations has not been outstandin during the receding, 2,4 months for an 24 month I 411CAL"W1.�= W V I ILWIM 0) IMIA to I I a *?Mr. MOM I I I 111INS I ILT-M IF =- Obligations); With respect to any calculation of historic data, only those payments actually made in the subject period shall be taken into account in making such calculation and, with respect to prospective calculations, only those payments reasonably expected to be made in the subject period shall be taken into account in making the • GTEOSrUenRevRefgV0.• •. A-2 "Average Annual Debt Service Requirements" means that average amount which, at the time of computation, will be required to pay the Annual Debt Service Requirements when due (either at Stated Maturity or mandatory redemption) and derived by dividing the total of such Annual Debt Service Requirements by the number of Fiscal Years then remaining before Stated Maturity of such Parity Obligations. For the purposes of this definition, a fractional period of a Fiscal Year shall be treated as an entire Fiscal Year. Capitalized interest payments provided from bond proceeds, accrued interest on any Debt, and interest earnings thereon shall be excluded in making such computation. "Bond� or "Bonds" shall mean the Georgetown Transportation Enhancement Corporation Sales Tax Revenue Refunding Bonds, Series 2015 authorized to be issued by this Reso ution. "Bond Insurance Policy" means the municipal bond new issue insurance policy issued by the Bond Insurer that guarantees payment of principal of and interest on the Bonds. "Book -Entry -Only System " means the book -entry system of bond registration provided in Section 4, or any successor system of book -entry registration. "Cede & Co. " means the designated nominee and its successors and assigns of The Depository Trust Company, New York. "Comptroller" shall mean the Comptroller of Public Accounts of the State of Texas, and any successor official or officer thereto. I I Ism -74 MM 1191F 1J1§1rr1V7TF9- MY 7=0 7=171irg 41011gaurvils PTUM110 that, in accordance with generally accepted accounting principles, are shown on the liability side of a balance sheet; and (b) all other indebtedness payable from Pledged Revenues (other than indebtedness otherwise treated as Debt hereunder) for borrowed money or for the acquisition, construction or improvement of property or capitalized lease obligations that is guaranteed, directly or indirectly, in any manner by the Issuer, or that is in effect guaranteed, directly or indirectly, by the Issuer through an agreement, contingent or otherwise, to purchase any such indebtedness or to advance or supply funds for the payment or purchase of any such indebtedness or to purchase property or services primarily for the purpose of enabling the debtor or seller to make payment of such GTEC\SrLienRevRefg\2015- BondRes A-3 indebtedness, or to assure the owner of the indebtedness against loss, or to supply funds to or in any other manner, *invest in the debtor (including any agreement to pay for property or services irrespective of whether or not such property is delivered or such services are rendered), or otherwise. I I WWWW"', I - UMV411 a U 4,11 d U C C 171MU M-0-LIQUil SLUM111011US 41 UIC; 0 p1pur prior Fiscal Years. O'Defeasance Securities" means (i) Federal Securities, (ii) noncallable obligations of an agency or instrumentality of the United States of America, including obligations that are unconditionally guaranteed or insured by the agency or instrumentality and that, on the as the Board of Directors adopts or approves proceedings authorizing the issuance of refunding bonds 4if -typ- V. as to investment quality by a nationally recognized investment rating firm not less than "AAA" or its equivalent, and (iii) noncallable obligations of a state or an agency or a county, municipality, or other political subdivision of a state that have been refunded and that, on the date the Board of Directors adopts or approves proceedings authorizing the issuance of refunding bonds or otherwise provide for the funding of an escrow to effect the defeasance of the Bonds, are rated as to investment quality by a nationally recognized investment rating firm no less than "A,,%A" or its equivalent. "DTO means The Depository Trust Company, New York, New York and its successors and assigns. •0 .1 04-M It V -- "Election" means the sales and use tax election held by the Issuer on May 5, 2001 pursuant to the provisions of the Act. "Federal Securities" means direct, noncallable obligations of the United States of America, including obligations that are unconditionally guaranteed by the United States of America. "Fiscal Year" means the twelve-month accounting period used by the Issuer in connection with the operation of the System, currently ending on September 30 of each year, GTEC\SrLienRevRefg\2015: BondRes A-4 which may be any twelve consecutive month period established by the Issuer, but in no event may the Fiscal Year be changed more than one time in any three calendar year period. "Funded Debt" means all Parity Obligations created or assumed by the Issuer that mature by their terms (in the absence of the exercise of any earlier right of demand), or that are renewable at the option of the Issuer to a date, more than one year after the original creation or assumption of such Debt by the Issuer. "Investment Act" shall mean the Public Funds Investment Act, Chapter 2256, Texas Government Code, as amended. "Issuer" shall mean Georgetown Transportation Enhancement Corporation. "Junior Lien Obligations" shall mean any obligations issued which the Issuer reserves the right to issue in Section 19 of this Resolution which have a lien on the Pledged Revenues junior to the Bonds. WSRB" means the Municipal Securities Rulemaking Board. I'm's of Section 4 of this Resolution and any successor thereto. "Permitted Investments" means, to the extent authorized by the Investment Act and the Issuerls investment policy. "Pledged Revenues" shall mean all of the issuer's receipts of the Sales Tax, less any amounts due or owing to the Comptroller as charges for collection or retention by the Comptroller for refunds and to redeem dishonored checks and drafts, to the extent such charges and retentions are authorized or required by law. "Pricing Certificate" shall mean the Pricing Certificate of the Issuer's Pricing Officer to be executed and delivered pursuant to Section 2 herein in connection with the issuance of the Bonds. "Pricing Officer" shall mean the President or Vice President of the Issuer, acting as the designated pricing officer of the Issuer to execute the Pricing Certificate. "Project" shall mean the project as described in Section I of this Resolution. "Record Date" means Record Date as defined in the Form of Bond in Exhibit "C" to this Resolution. "Refunded Obligations" means the Senior Lien Sales Tax Revenue Bonds, Series 2007 outstanding in the amount of $8,470,000. "Registered Owner" or "Registered Owners" means the registered owner, whose name appears in the Security Register, for any Parity Obligation. "Registration Books" means the books or records for the registration of the transfer and exchange of the Bonds. "Required Reserve" shall mean the amount to be maintained on deposit in, or held as cash securities, a Revenue Fund Obligation permitted by State law for the benefit of the Reserve Fund (as defined in Section 11 hereof) which shall equal or exceed, or have a face value of Average Annual Debt Service Requirements on the Bonds and any Additional Parity Obligation. "Reserve Fund" means the special fund created, established and maintained by the provisions of Sections 7 and I I of this Resolution. "Reserve Fund Obligation" means a surety bond, insurance policy or other similar instrument deposited in the Reserve Fund to satisfy the Required Reserve or similar obligation deposited in any reserve fund for another series of Parity Obligations whereby the issuer of such GTEC\SrLienRevRefg\2015: BondRes A-6 obligation is obligated to provide funds up to and including the maximum amount and under the conditions specified in such agreement or instrument, "Reserve Fund Obligation Payment" means any subrogation payment the issuer is obligated to make from Pledged Revenues deposited in the Reserve Fund or any reserve fund for another series of Parity Obligations with respect to a Reserve Fund Obligation. With respect to the Bonds, the Reserve Fund Obligation Payment means the repayment of any draws and expenses under the Reserve Fund Obligation together with interest. 1111 All 1 11 1 t 111`111i'll 1 11 1 1,1111111 1 ll Ill 111!1�111 I I NI -MV "NEW REE -el - Mel c VAISL-reir-C tr -cot Nu, MI-LiTaTies oiL Me isst r as I 1107T UT HUMUIL r Icn�-0-LIJ ulrwge�� I n together with any increases in the aforesaid rate if provided and authorized by the laws of the State of Texas, including specifically the Act, and collected for the benefit of the Issuer, all in accordance with the Act. "Stated Maturity" means the annual principal payments of tile Parity Obligations payable *n the respective dates set forth in the Resolutions which authorized the issuance of such Parity *bligations. "Subordinate Lien Obligations" means (i) any bonds, notes, warrants, certificates of obligation, contractual obligations or other Debt issued by the Issuer that are payable, in whole or in part, from and equally and ratably secured by a lien on and pledge of the iledged Revenues, such pledge being subordinate and inferior to the lien on and pledge of the Pledged Revenues that are or will be pledged to the payment of any Parity Obligations and Junior Lien Obligations issued by the Issuer, and (ii) obligations hereafter issued to refund any of the foregoing if issued in a manner that provides that the refunding bonds are payable from and equally and ratably Subordinate Lien Obligations. "Term Bonds" means those Parity Obligations so designated in the resolutions authorizing such bonds which shall be subject to retirement by operation of a mandatory redemption account. "Term of Issue" means with respect to any Balloon Debt, a period of time equal to the greater of (1) the period of time commencing on the date of issuance of such Balloon Debt and ending on the final maturity date of such Balloon Debt or (ii) twenty-five years. I'Transfer Agreement" shall mean the Amended and Restated Sales Tax Remittance Agreement dated as of April 10, 2007, between the City and the Issuer. GTEC\SrLienReYRefg12015: BondRes A-7 •' r NO. PRINCIPAL sV UNITED STATES (! • t, STATE OF TEXAS SERIESSENIOR LIEN SALES TAX REVENUE REFUNDING BOND, 1 InterestRate Dated Date Maturity Date CUSIP No. , 201,5 rr ► ,'.. •'!! . : • - - !- :. a 4':. i ! •'• ':f - �' _ •# • r•'. 1 ' : r ♦ ## ! ♦ int • •! -* a" ON FAWO-It 01"Or-3110M WO in which case such fincipal amount shall bear interest from such next following interest payment t,' provided, however,. on date of authentication hereofinterest • : the To be completed as determined by the Pricing Officer in the Pricing Certificate: To the extent that the Pricing Certificate relating to the Bonds is inconsistent with any provisions in the Form of Bond or contains information to complete missing information in this Form of Bond; the language in the Pricing Certificate shall be used in the executed Bonds. GTEC\SrLienRevRefg\2015: BondRes B-1 Bond or Bonds, if any, for which this Bond is being exchanged is due but has not been paid, then this Bond shall bear interest from the date to which such interest has been paid in full. Notwithstanding the foregoing, during any period in which ownership of the Bonds is determined only by a book entry at a securities depository for the Bonds, any payment to the securities depository, or its nominee or registered assigns, shall be made in accordance with existing arrangements between the Issuer and the securities depository. Aglaia All N'Talf for this Bond it will make available to the Paying Agent/Registrar, from the "Debt Service Fund" created by the Bond Resolution, the amounts required to provide for the payment, in immediately available funds, of all principal of and interest on the Bonds, when due. �M oil) F1111van ii ii =41 Me, UnU at a sec.3-unies W", 11 uic JD,4111W6-1V"1C n and bearing the same interest rate are to be redeemed, the particular Bonds of such maturity ant beatina such interest rate shall be selected in accordance with the arrangements between th* Issuer and the securities depository. GTEC\SrLienRevRefg\2015: BondRes B-2 4 IN I I oil 11,11,11, 1 'IfIr THIS BOND is one of an issue of Bonds initially dated the Dated Date specified on tho face of this Bond, authorized 'in accordance with the Constitution and laws of the State of Texas, including particularly the Act, in the original princi al amount of $ for the purposs I ip of (i) refunding the Refunded Obligations and (ii) paying the costs of issuing the Bonds. or on any date thereafter, the Bonds of this Series maturing on and after 20 * may be redeemed prior to their scheduled maturities, at the option of the Issuer, with funds derived from any available and lawful source, t par lu, accrued i erest to the date fixe re in tion ole or- from time to line in THE BONDS maturing on August 15, 20 (the "Tenn Bonds") are subject to mandatory sinking fund redemption by lot prior to maturity in the following amounts, on the following dates and at a price of par plus accrued interest to the redemption date. Bonds Maturing August 15, 20 Redemption Date Principal Amount August 15, 20 $ August 15, 20 t t t Final Maturity THE PRINCIPAL AMOUNT of the Term Bonds required to be redeemed pursuant to the op'eration of the mandatory sinking fund redemption provisions shall be reduced, at the option of the Issuer by the principal amount of any Tenn Bonds of the stated maturity which, at least 50 days prior to a mandatory redemption date, (1) shall have been acquired by the Issuer, at a price not exceeding the principal amount of such Term Bonds plus accrued interest to the date of purchase thereof, and delivered to the Paying Agent/Registrar for cancellation, (2) shall have been purchased and canceled by the Paymig Agent/Registrar at the request of the Issuer with monies in the Interest and Sinking Fund at a price not exceeding the principal amount of the *To be completed as determined by the Pricing Officer in the Pricing Certificate. To the extent that the Pricing Certificate relating to the Bonds is inconsistent with any provisions in the Form of Bond or contains information to complete missing information in this Form of Bond, the language in the Pricing Certificate shall be used in the executed Bonds. GTEC\SrLienRevRefg\2015: BondRes B-3 Tenn Bonds plus accrued interest to the date of purchase thereof, or (3) shall have been redeemed pursuant to the optional redemption provisions and not theretofore credited against a mandatory sinking fimd redemption requirement." AT LEAST 30 days prior to the date fixed for any redemption of Bonds or portions thereof prior to maturity, the Issuer shall cause written notice of such redemption to be sent by United States mail, first class, postage prepaid, to each Registered Owner of a Bond to be redeemed, in whole or in part, at the address of the Registered Owner appeanng on the registration books of the PaM,-L A ent/Registrar at the close of business on the business dar, next preceding the date of mailing of such notice. Any notice of redemption so mailed shall be conclusively presumed to have been duly given irrespective of whether received by the Registered Owner. By the date fixed for any such redemption, due provision shall be made with the Paying Agent/Registrar for the payment of the required redemption price for the Bonds or portions thereof which are to be so redeemed. If such written notice of redemption is mailed and if due I provision for such payment is made, all as provided above, the Bonds or portions thereof which are to be so redeemed thereby automatically shall be treated as redeemed prior to their scheduled ma 'ties, and theyv shall not bear interest after the date fixed for redem Aurit -- Aftion- and Jgpm shall not be regarded as being Outstanding except for the right of the Registered Owner to receive the redemption price from the Paying Agent/Registrar out of the s provided or suc payment. If a portion of any Bond shall be redeemed a substitute Bond or Bonds having the same maturity date, bearing interest at the same rate, in any denomination or denominations in any integral multiple of $5,000, at the written request of the Registered Owner, and in an aggregate principal amount equal to the unredeemed portion thereof, will be issued to the Registered Owner upon the surrender thereof for cancellation, at the expense of the Issuer, all as provided in the Bond Resolution. Any notice of redemption shall either (1) explicitly state that the proposed redemption is conditioned on there being on deposit in the Debt Service Fund -tl7x if sufficient money to pay the full redemption price of the Bonds to be redeemed is on deposit in the Debt Service Fund. ALL BONDS OF TMS SERIES are issuable solely as fully registered Bonds, without interest coupons, in the denomination of any integral multiple of $5,000. As provided in the Bond Resolution, this Bond, or any unredeemed portion hereof, may, at the request of the nets-herl- .. Use of Term Bonds, if any, to be determined by the Pricing Officer. GTEC\SrLienRevRefg\2015: BondRes B-4 and registered. The form of Assignment printed or endorsed on this Bond shall be executed by the Registered Owner or its duly authorized attorney or representative to evidence the assignment hereof. The Issuer shall pay the Paying Agent/Re istrar's standard or customary fees 91 tm'"rf rg4i&i6mk�ng such transfer- but -the one resuesting such transfer shall jaXW taxes or other governmental charges required to be paid with respect thereto. The Paying Agent/Registrar shall not be required to make transfers of registration of this Bond or any portion hereof (i) during the period commencing with the close of business on any Record Date and ending with the operimig of business on the next followin9 or principal interest D , ayment date, or, (ii with respect to any Bond or any portion thereof called for redemption prior to maturity, within 45 days prior to its redemption date. The Registered Owner of this Bond shall be deemed and treated by the Issuer and the Paying Agent/Registrar as the absolute owner hereof for all purposes, including payment and discharge of liability upon this Bond to the extent of such payment, and the Issuer and the Paying Agent/Registrar shall not be affected by any notice to the contrary. WHENEVER the beneficial ownership of this Bond is determined by a book entry at a securities depository for the Bonds, the foregoing requirements of holding, delivering or transferring this Bond shall be modified to require the appropriate person or entity to meet the requirements of the securities depository as to registering or transferring the book entry to produce the same effect. IN THE EVENT any Paying Agent/Registrar for the Bonds is changed by the Issuer, Jczd in the Bond Resolution that it promptly will appoint a competent and legally qualified substitute therefor, and promptly will cause written notice thereof to be mailed to the Registered Owners of the Bonds. IT IS HEREBY certified, recited, and covenanted that this Bond has been duly and validly authorized, issued, sold, and delivered; that all acts, conditions., and things required or proper to be performed, exist, and be done precedent to or in the authorization, issuance, and delivery of this Bond have been performed, existed, and been done *in accordance with law-, that this Bond is a special obligation of the Issuer; that neither the State of Texas, the City, nor any political corporation, subdivision, or agency of the State of Texas, nor any member of the Board of Directors of the Issuer, either individually or collectively, shall be obligated to pay the principal of or the interest on this Bond and neither the faith and credit nor the taxing power (except as described below) of the State of Texas, the City, or any other political corporation, --rision or .•``f'eledgedo the qmMjent of the %crincii*al of or the interest on this Bond-, that the principal of and interest on this Bond, together with any Additional Parity Obligations (as defined in the Bond Resolution) hereafter issued, are secured by and payable from a first lien on and pledge of certain funds created under the Bond Resolution and the revenues defined in the Bond Resolution as the "Pledged Revenues", which include the proceeds of a one-half of one percent sales and use tax levied for the benefit of the Issuer by the City (the "Sales Tax") pursuant to Section 4B of the Act which lien on and pledge is prior in right and claim to the lien and pledge on the Pledged Revenues securing the payment of the outstanding Junior Lien Obligations and any Subordinate Lien Obligations; and that the Registered Owner hereof shall not have the ri*6t to demand payment of the principal of or interest on this Bond from any tax proceeds other than the Sales Tax proceeds levied for the benefit of the Issuer by the City pursuant to Section 4B of the Act, or from any other source. GTEC\SrLienRevRefgVO15: BondRes B-5 THE ISSUER HAS RESERVED the right in the Bond Resolution, subject to certain conditions set forth therein, to issue obligations or incur indebtedness from time to time in the rature on a parity with the Bonds with respect to the pledge of and lien on the Pledged Revenues which secures the Bonds. The Issuer may also issue obligations or incur indebtedness which is secured on a junior and subordinate lien with respect to the Pledged Revenues. The Bond Resolution finther provides that the Issuer may create a debt service reserve fund and fund it or any indebtedness which possesses a lien on and pledge of the Pledged Revenues on a parity with the Bonds, and that such reserve shall secure only the obligations or indebtedness for which it was funded or is to be flinded. The Issuer has created a debt service reserve fund for the benefit of the Bonds. THE ISSUER ALSO HAS RESERVED THE RIGHT to amend the Bond Resolution as provided therein, and under some (but not all) circumstances amendments thereto must be approved by the Registered Owners of a majority in aggregate principal amount of the Outstanding Bonds. BY BECOMING the Registered Owner of this Bond, the Registered Owner thereby 4s* -f it-nd ri J-Zasghitio d bv suel, -14010- M-- awilm- 11"115"N"'Offil -a-Nine 11 m# -04- 4 10 W12", the terms and provisions of this Bond and the Bond Resolution constitute a contract between each Registered Owner hereof and the Issuer. IN WITNESS WHEREOF, the Issuer has caused this Bond to be signed with the manual or facsimile signature of the President of the Board of Directors of the Issuer and countersigned with the manual or facsimile signature of the Secretary of the Board of Directors of the Issuer. (facsimile signature) (facsimile signature) Secretary, Board of Directors President, Board of Directors M] (To be executed if this Bond is not accompanied I I - 011, I s 0 - 3 a mm r*5 GTEC\SrLienRevRefgV015: BondRes B-6 It is hereby certified that this Bond has been issued under the provisions of the Bond replacement of, or in exchange •' a Bond, Bonds, • a portion • a Bond or Bonds of a series which originally was approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts of the State of Texas. Dated: The Bank of New York Trust Company, National Association Dallas, Texas Paying Agent/Registrar By: Authorized Representative ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unt;t 1601� MEIN � RFTIFI� I I I F I i I Fk I � I I ��� I I I!! I 111liqlp 11111yi� 11�1111��g 1 1111 111��! Iffm 4 1111115! U MOW 1, im�� the within Bond and all rights thereunder, and hereby irrevocably constitutes and .#i• , attorney, to register the transfer • the within Bond on a kept for registration thereof, with full power • substitution in the premises. Dated: Signature Guaranteed: NOTICE: Signature(s) must be guaranteed NOTICE- The signature above must by an eligible guarantor institution correspond with the name of the Registered participating in a securities transfer • as it .•a upon the front • this association recognized signature guarantee Bond in every particular, without alteration program. or enlargement or any change whatsoever. GTEC\SrLienRevRefg\2015: BondRes B-7 VlarsawN O' :O BOND ONLY: 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) A. immediately under the name of the Bond, the headings "Interest Rate" an' 'Maturity Date" shall both be completed with the words "As shown below" an,16 "CUSIP No." shall be deleted. I;qiqqici!!!I�11�1 E3= "ON THE MATURITY DATE SPECIFIED BELOW, the Georgetown Transportation Enhancement Corporation (the "Issuer"), being a nonstock, nonprofit industrial development corporation organized and existing under the laws of the State of Texas, including particularly the Development Corporation Act of 1979, Article 5190.6, V.A.T.C.S., as amended amended now codified as Local Government Code, Title 12, Subtitle C. particularly Chapters 501 and 505 of the Local Government Code (the "Act"), and acting on behalf of the City of Georgetown, Texas (the "City"), hereby promises to pay to the registered owner set forth above or to the assignee or assignees thereof (either being hereinafter called the "Registered Owner") on the August 15 in each of the years, 'in the principal 'installments and bearing interest at the per annum rates set forth in the following schedule: Year of Maturity Principal Amount Interest Rate (Information from Sections 2 and 3 to be inserted) GTEC\SrLienRevRefg\2015: BondRes B-8 the respective Interest Rate per annum specified above. Interest 'Is payable on , 2015 and semiannually on each and August 15 and February 15 thereafter to the date of payment of the principal installment specified above, or the date of redemption prior to maturity; except, if this Bond is required to be authenticated and the date • its authentication is later than the first Record Date (hereinafter defined), such principal amount shall bear interest from the interest payment date next preceding the date of authentication, unless such date of in which case such principal amount shall bear interest from such next following interest payment date; provided, however, that if on the date of authentication hereof the interest on the Bond • Bonds, if any, for which this Bond is being exchanged is due but has not been paid, then this Bond shall bear interest from the date to which such interest has been paid in full." GTEC\SrLienRevRefg\2015: BondRes B-9 EXHIBIT C Accounting Principles GTEC\SrLienRevRefg\2015: BondRes C-1