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R2011-033 - 2011-03-28RESOLUTION NO. R2011 -33 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, APPROVING A BOND ORDER OF BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO. 4 AUTHORIZING THE ISSUANCE OF $2,640,000 UNLIMITED TAX BONDS, SERIES 2011. WHEREAS, the Brazoria County Municipal Utility District No. 4 (the "District is located within the extraterritorial jurisdiction of the City of Pearland, Texas (the "City and WHEREAS, by Resolution No. R80 -13 "Consent Ordinance dated June 9, 1980, the City consented to the creation of the District, and placed certain conditions on the issuance of bonds by the District, including the securing a letter(s) "Compliance Letter") from the City' mayor confirming the District's compliance with the Consent Ordinance and approving the District's resolution "Bond Order") authorizing the issuance of such bonds "Approval Letter and WHEREAS, the City Council has considered the Compliance Letter, the Bond Order and the Approval Letter in connection with the issuance of the District's proposed $2,640,000 Unlimited Tax Bonds, Series 2011 "2011 Bonds and has found all to be acceptable; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. All of the matters and facts set forth in the preamble hereof are true and correct. Section 2. The Bond Order of the Board of Directors of Brazoria County Municipal Utility District No. 4, authorizing the issuance of its 2011 Bonds is hereby approved. RESOLUTION NO. R2011 -33 Section 3. The Mayor of the City of Pearland is hereby authorized to execute the Compliance Letter, the Approval Letter and such other letters or documents required by the Consent Ordinance in connection with the issuance of the Bonds by the District. Section 4. This Resolution shall take effect immediately from and after its passage in accordance with the provisions of the Charter of the City of Pearland and it is accordingly so resolved. PASSED, APPROVED, and ADOPTED this the 14th day of March, 2011. ATTEST: APPROVED AS TO FORM: DARRIN M. COKER CITY ATTORNEY TOM ID MAYOR 2 TOM REID MAYOR TELEPHONE(281)652-1654 March ,2011 The Honorable Greg Abbott Attorney General,State of Texas P.O.Box 12548 Austin,Texas 78711-2548 Re: Brazoria County Municipal Utility District No. 4 - $2,640,000 Unlimited Tax Bonds, Series 2011 Dear General Abbott: Pursuant to the authority vested in me by Section 30.102(c)of the City of Pearland,Texas,Code of Ordinances,and the City Charter of the City of Pearland,Texas,I,Tom Reid,as Mayor of the said City of Pearland,Texas,do hereby state the following: 1. Brazoria County Municipal Utility District No. 4 is in compliance with Article 4 of Chapter 30 (Utilities) of the code of Ordinances of the City of Pearland,Texas, with the Ordinance Nos. 411, 411-1, 443, and 443-1 of the City of Pearland, Texas and with Resolution No.R80-13 of the City of Pearland,Texas; 2. I hereby,on behalf of the City Council of the City of Pearland,Texas,approve issuance of the above-referenced Municipal Utility District Unlimited Tax Bonds,Series 2011;and 3. I further hereby approve the attached Bond Order in form and substance,which will be adopted by said Brazoria County Municipal Utility District No. 4, in authorizing the issuance of said bonds, a copy of which final Bond Order will be attached hereto and made part hereof for all purposes as Exhibit"A" Sincerely, Tom Reid Mayor i . F!i RI RESOLUTION AUTHORIZING THE ISSUANCE OF$2,640,000 BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO.4 UNLIMITED TAX BONDS,SERIES 2011 If THE STATE OF TEXAS § COUNTY OF BRAZORIA § WHEREAS, the bonds hereinafter authorized were duly and favorably voted at an election held in the District on September 26,1987;and WHEREAS, the Board of Directors of the District hereby determines that bonds in the amount of$2,640,000 should be issued, as a portion and the ninth installment of the $18,785,000 bonds voted at such election, leaving the remaining $3,695,000 of such bonds, and any other bonds as may be authorized by the District voters, to be issued at a later date;Now,Therefore BE IT RESOLVED BY THE BOARD OF DIRECTORS OF BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO.4 THAT: ff 1. Definitions. Throughout this resolution the following terms and expressions as used herein shall have the meanings set forth below: "Accounting Principles means the accounting principles described in the notes ( to the Audit as such principles may be changed from time to time to comply with State laws or regulations. "Act" means Chapters 49 and 54,Texas Water Code,as amended, "Audit" means the audited financial statements of the District prepared by an independent auditor in accordance with the rules of the Texas Commission on Environmental Quality in effect at such time. "Blanket Issuer Letter of Representations" means the Blanket Issuer Letter of ►: Representations between the District, the Registrar and DTC. "Board"means the Board of Directors of the District. "Bond" or "Bonds" means one or more bonds of the issue of Brazoria County. Municipal Utility District No. 4 Unlimited Tax Bonds, Series 2011, authorized in this Resolution,unless the context clearly indicates otherwise. 320932 1 - k "Business Day" means any day which is not a Saturday, Sunday, or a day on which the Registrar is authorized by law or executive order to remain closed. "Capital Projects Fund" means the fund confirmed in this Resolution. k "Code" means the Internal Revenue Code of 1986,as amended. I[� "Debt Service Fund" means the debt service fund confirmed in this Resolution. "District"means Brazoria County Municipal Utility District No.4. "DTC" means The Depository Trust Company of New York, New York, or any successor securities depository. is "DTC Participant" means brokers and dealers, banks, trust companies, clearing corporations and certain other organizations on whose behalf DTC was created to hold securities to facilitate the clearance and settlement of securities transactions among DTC Participants. is "EMMA" means the MSRB via the Electronic Municipal Market Access System established by the MSRB. "Initial Bond" means the Initial Bond authorized by Section 4 of this Resolution. "Initial Purchaser" means the initial purchaser of the Bonds identified in Section 23 of this Resolution. "Interest Payment Date," when used in connection with any Bond, means March 1, 2012, and each September 1 and March 1 thereafter until maturity or prior redemption of such Bond. "Material",shaIl have the meaning of such word as used under federal securities laws. "MSRB" means the Municipal Securities Rulemaking Board. "Paying Agent"means the Registrar. "Record Date" means, for any Interest Payment Date, the fifteenth calendar day of the month next preceding each Interest Payment Date. 320932 r .. • • "Register" means the books of registration kept by the Registrar, in which are maintained the names and addresses of, and the principal amounts of the Bonds registered to,each Registered Owner. "Registered Owner" means any person who shall be the registered owner of any • outstanding Bond. "Registrar" means The Bank of New York Mellon Trust Company,Dallas,Texas, �I and its successors in that capacity, "Resolution" as used herein and in the Bonds means this Resolution authorizing • the Bonds. "Rule"means SEC Rule 15c2-12,as amended from time to time. "SEC" means the United States Securities and Exchange Commission. "SID" means the Municipal Advisory Council of Texas or any successor designated by the State of Texas and determined by the SEC or its staff to be a state information depository within the meaning of the Rule from time to time. 2. Authorization. The Bonds shall be issued in fully registered form,without coupons, in the total aggregate amount of TWO MILLION SIX HUNDRED FORTY • THOUSAND DOLLARS ($2,640,000) for the purpose or purposes of purchasing, • constructing, acquiring, owning, operating, repairing, improving, or extending a waterworks system, sanitary sewer system, and drainage and storm sewer system, is including, but not limited to, all additions to such systems and all works, improvements, facilities, plants, equipment, appliances, interests in property, and contract rights needed therefor and administrative facilities needed in connection therewith,under and in strict conformity with the Constitution and Iaws of the State of Texas, particularly Section 59 of Article XVI,Constitution of Texas,and the Act. 3. Designation, Date, and Interest Payment Dates. The Bonds shall be designated as the "BRAZORIA► COUNTY MUNICIPAL UTILITY DISTRICT NO. 4 UNLIMITED TAX BONDS, SERIES 2011," and shall be dated April 1,2011. The Bonds ff� shall bear interest at the rates set forth below from the later of April 1,2011, or the most recent Interest Payment Date to which interest has been paid or duly provided for, calculated on the basis of a 360-day year of twelve 30-day months, interest payable on is March 1, 2012, and semiannually thereafter on each September 1 and March 1 until maturity or prior redemption. 4. Initial Bond; Interest Rates; Maturities; Principal Amounts and • Denominations, The Bonds shall be issued bearingthe numbers, in the principal 320932 1` • P P • amounts, and bearing interest at the rates set forth in the following schedule, and may be transferred and exchanged as set out in this Resolution. The Bonds shall mature on March 1 in each of the years and in the amounts set out in such schedule, The Initial Bond shall be numbered IB-1 and all other Bonds shall be numbered in sequence beginning with R-1, Bonds delivered in transfer of or in exchange for other Bonds shall be numbered in order of their authentication by the Registrar, shall be in the denomination of$5,000 or integral multiples thereof,and shall mature on the same date and bear interest at the same rate as the Bond or Bonds in lieu of which they are delivered. Principal Amount Year Interest Rate $130,000 2013 130,000 2014 130,000 2015 130,000 2016 130,000 2017 130,000 2018 130,000 2019 130,000 2020 130,000 2021 130,000 2022 130,000 2023 130,000 2024 130,000 2025 130,000. 2026 130,000 2Q27 130,000 2028 130,000 2029 130,000 2030 130,000 2031 170,000 2032 - 5. Optional and Mandatory Redemption. Portions of the Bonds are subject to optional redemption on the dates and at the redemption prices set forth in the form of the Bonds in this Resolution. In addition, portions of the Bonds are subject to mandatory redemption on the dates and at the redemption prices set forth in the form of the Bonds in this Resolution. Principal amounts may be redeemed only in integral multiples of $5,000. If a is Bond subject to redemption is in a denomination larger than $5,000, a portion'of such Bond may be redeemed,but only in integral multiples of$5,000. In selecting portions of Bonds for redemption, the Registrar shall treat each Bond as representing that number • of Bonds of$5,000 denomination which is obtained by dividing the principal amount of 320932 k ' 4E6 such Bond by $5,000. The Registrar shall select the particular Bonds to be redeemed within any given maturity by lot or other random selection method. Upon surrender of any Bond for redemption in part,the Registrar,in accordance with this Resolution,shall authenticate and deliver in exchange therefor a Bond or Bonds of like maturity and interest rate in an aggregate principal amount equal to the unredeemed portion of the Bond so surrendered. Gf Notice of any redemption identifying the Bonds to be redeemed in whole or in part shall be given by the Registrar at least 30 days prior to the date fixed for redemption by sending written notice by first class mail to the Registered Owner of • each Bond to be redeemed in whole or in part at the address shown on the Register. Such notices shall state the redemption date, the redemption price, the place at which Bonds are to be surrendered for payment and, if less than all Bonds outstanding within any one maturity are to be redeemed, the numbers of the Bonds or portions thereof to be redeemed. Any notice given as provided in this Section shall be conclusively presumed to have been duly given, whether or not the Registered Owner receives such notice. By the date fixed for redemption, due provision shall be made with the Registrar for payment of the redemption price of the Bonds or portions thereof to be • redeemed, plus accrued interest to the date fixed for redemption. When Bonds have been called for redemption in whole or in part and due provision has been made to redeem same as herein provided, the Bonds or portions thereof so redeemed shall no longer be regarded as outstanding except for the purpose of receiving payment solely from the funds so provided for redemption, and the rights of the Registered Owners to collect interest which would otherwise accrue after the redemption date on any Bond or portion thereof called for redemption shall terminate on the date fixed for redemption. b. Execution of Bonds; Seal. The Bonds shall be signed by the President of the Board -and countersigned by the Secretary of the Board, by their manual, Iithographed, or facsimile signatures, and the official seal of the District shall be impressed or placed in facsimile thereon. Such facsimile signatures on the Bonds shall have the saarie effect as if each of the Bonds had been signed manually and in person by each of said officers,and such facsimile seal on the Bonds shall have the same effect as if the official seal of the District had been manually impressed upon each of the Bonds. If any officer of the District whose manual or facsimile signature shall appear on the Bonds shall cease to be such officer before the authentication of such Bonds or before the delivery of such Bonds, such manual or facsimile signature shall nevertheless be valid and sufficient for all purposes as if such officer had remained in such office. On the Closing Date,the Initial Bond, being a single bond representing the entire principal amount of the Bonds,(the"Initial Bond"),payable in stated installments to the Initial Purchaser or its designee, executed by manual or facsimile signature of the President and Secretary of the Board, approved by the Attorney General,and registered and manually signed by the Comptroller of Public Accounts, shall he delivered to the • 320932 Initial Purchaser or its designee. Upon payment for the Initial Bond, the Registrar shall cancel the Initial Bond and deliver Bonds to DTC in accordance with Section 13. • • 7. Approval by Attorney General; Registration by Comptroller. The Bonds to be initially issued shall be delivered to the Attorney General of Texas for approval • and shall be registered by the Comptroller of Public Accounts of the State of Texas. The manually executed registration certificate of the Comptroller of Public Accounts substantially in the form provided in this Resolution shall be attached or affixed to the Bonds to be initially issued. B. Authentication. Except .for the Initial Bond, which need not be authenticated by the Registrar, in the event the Book-Entry-Only system is discontinued, only such Bonds which bear thereon a certificate of authentication, substantially in the form provided in this Resolution, manually executed by an authorized representative of the Registrar, shall be entitled to the benefits of this Resolution or shall be valid or obligatory for any purpose. Such duly executed certificate of authentication shall be conclusive evidence that the Bonds so authenticated were delivered by the Registrar hereunder. 9. Payment of Principal and Interest. The Registrar is hereby appointed as the paying agent for the Bonds. The principal of and interest on the Bonds are payable, without exchange or collection charges, in any coin or currency of the United States of America which,on the date of payment,is legal tender for the payment of debts due the United States of America. Principal is payable upon presentation and surrender of the Bonds as they respectively become due and payable, whether at maturity or by prior redemption, at the principal payment office of the Registrar in Dallas,Texas. Interest is payable by cheek or draft dated as of the Interest Payment Date,mailed by the Registrar on each Interest Payment Date to the Registered Owner of record as of the Record Date, first class, postage prepaid, to the address of such Registered Owner as shown in the Register, or by such other customary banking arrangements as may be agreed upon by the Registrar and the Registered Owner, at the risk and expense of the Registered Owner. Any accrued interest payable at maturity on a Bond shall be paid upon presentation and surrender of such Bond at the operations office of the Registrar. k - If the date for payment of the principal of or interest on any Bond is not a '• Business Day,then the date for such payment shall be the next succeeding Business Day with the same force and effect as if made on the date such payment was originally due. 10. Successor Registrars. The District covenants that at all times while any Bonds are outstanding it will provide a national or state banking institution,which shall be organized and doing business under the laws of the United States of America or of any State, authorized under such laws to exercise trust powers, and which shall .be subject to supervision or examination by federal or state authority, to act as Registrar 320932 h ' tr' for the Bonds. The District reserves the right to change the Registrar for the Bonds on not less than 30 days written notice to the Registrar, so long as any such notice is effective not less than 60 days prior to the next succeeding principal or Interest Payment Date on the Bonds. Promptly upon the appointment of any successor Registrar, the previous Registrar shall deliver the Register or copies thereof to the new Registrar, and the new Registrar shall notify each Registered Owner, by United States mail, first class postage prepaid, of such change and of the address of the new Registrar. Each Registrar hereunder, by acting in that capacity, shall be deemed to have agreed to the provisions of this Section. 11. Special Record Date. If interest on any Bond is not paid on any Interest Payment Date and continues unpaid for 30 days thereafter, the Registrar shall establish a new record date for the payment of such interest, to be known as a Special Record Date. The Registrar shall establish a Special Record Date when funds to make such interest payment are received from or on behalf of the District. Such Special Record Date shall be 15 days prior to the date fixed for payment of such past due interest, and notice of the date of payment and the Special Record Date shall be sent by United States mail, first class, postage prepaid, not later than five days prior to the Special Record Date, to each affected Registered Owner of record as of the close of business on the day prior to the mailing of such notice. 12. Ownership; Unclaimed Principal and Interest. The District, the Registrar and any other person may treat the person in whose name any Bond is registered as the absolute Registered Owner of such Bond for the purpose of making and receiving payment of principal or interest on such Bond, and for all other purposes, whether or not such Bond is overdue, and neither the District nor the Registrar shall be bound by ( any notice or knowledge to the contrary. All payments made to the person deemed to be the Registered Owner of any Bond in accordance with this Section shall be valid and effectual and shall discharge the liability of the District and the Registrar upon such Bond to the extent of the sums paid. is Amounts held by the Registrar which represent principal of and interest on the Bonds remaining unclaimed by the Registered Owner after the expiration of three years from the date such amounts have become due and payable shall be reported and disposed of by the Registrar in accordance with the applicable provisions of Texas law including,to the extent applicable,Title 6 of the Texas Property Code,as amended. 13. Book-Entry Only System. (a) The Initial Bond shall be registered in the name of Cede & Co. Except as provided in Section 13 hereof, all other Bonds shall be registered in the name of Cede&Co.,as nominee of DTC, (b) With respect to Bonds registered in the name of Cede & Co., as nominee of DTC, the District and the Registrar shall have no responsibility or obligation to any 32093Z . i r�F DTC Participant or to any person on behalf of whom such DTC Participant holds an interest in the Bonds, except as provided in this Resolution. Without limiting the immediately preceding sentence, the District and the Registrar shall have no responsibility or obligation with respect to(i) 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 or any other person, other than a Registered Owner, as shown on the Register,of any notice with respect to the Bonds,including any notice of redemption, or (iii) the payment to any DTC Participant or any other person, other than a Registered Owner,as shown on the Register,of any amount with respect to principal of, premium, if any, or interest on the Bonds. Notwithstanding any other provision of this Resolution to the contrary, the District and the Registrar shall be entitled to treat and consider the person in whose name each Bond is registered in the Register as the absolute owner of such Bond for the purpose of payment of principal of and interest on the Bonds, for the purpose of giving notices of redemption and other matters with respect to such Bond,for the purpose of registering transfer with respect to such Bond, and for all other purposes whatsoever. The Registrar shall pay all principal of, premium, if any, and interest on the Bonds only to or upon the resolution of the respective Registered.Owners, as shown in the Register 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 District's obligations with respect to payments of principal,premium,if any,and interest on the Bonds to the extent of the sum or sums so paid. No person other than a Registered Owner, as shown in the Register, shall receive a Bond certificate evidencing the obligation of the District to make payments of amounts due pursuant to this Resolution. Upon delivery by DTC to the Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co,, and subject to the provisions of this Resolution with respect to interest checks being mailed to the Registered Owner of record as of the Record Date, the phrase "Cede & Co." in this Resolution shall refer to such new nominee of DTC. I = . (c):The execution and delivery of the Blanket Issuer Letter of Representations is hereby approved with such changes as may be approved by the President of the Board, and the President of the Board is hereby authorized and directed to execute such Blanket Issuer Letter of Representations. 14. Successor Securities Depository; Transfer Outside Book-Entry Only System. In the event that the District in its sole discretion, determines that the beneficial is owners of the Bonds be able to obtain certificated Bonds, or in the event DTC discontinues the services described herein, the District shall (i) appoint a successor securities depository, qualified to act as such under Section 17(a) of the Securities and Exchange Act of 1934, as amended, notify DTC and DTC Participants, as identified by DTC, of the appointment of such successor securities depository and transfer one or more separate Bonds to such successor securities depository or(ii) notify DTC and DTC • 320932 i } • Participants, as identified by DTC, of the availability through DTC of Bonds and transfer one or more separate Bonds to DTC Participants having Bonds credited to their DTC accounts, as identified by DTC. In such event, the Bonds shall no longer he • restricted to being registered in the Register in the name of Cede & Co., as nominee of DTC, but may be registered in the name of the successor securities depository, or its nominee, or in whatever name or names Registered Owners transferring or exchanging • • Bonds shall designate, in accordance with the provisions of this Resolution. 15. Payments to Cede & Co. Notwithstanding any other provision of this Resolution to the contrary, so long as any Bonds are registered in the name of Cede & Co.,as nominee of DTC,all payments with respect to principal of, premium,if any,and interest on such Bonds, and all notices with respect to such Bonds, shall be made and given, respectively, in the manner provided in the Blanket Issuer Letter of Representations. 16. Registration, Transfer, and Exchange. This section is subject to the provisions of Section 13, entitled "Book-Entry-Only System." So long as any Bonds remain outstanding, the Registrar shall keep the Register at its principal payment office and, subject to such reasonable regulations as it may prescribe, the Registrar shall provide for the registration and transfer of Bonds in accordance with the terms of this Resolution. Each Bond shall be :.transferable only upon the presentation and surrender thereof at the operations office of the Registrar, duly endorsed for transfer, or accompanied by •an assignment duly executed by the Registered Owner or his authorized representative in form satisfactory to the Registrar. Upon due presentation of any Bond in proper form for transfer, the Registrar shall authenticate and deliver in exchange therefor, within three Business Days after such presentation, a new Bond or Bonds, registered in the name of the transferee or transferees, in authorized denominations and of the same maturity and aggregate principal amount and bearing interest at the same rate as the Bond or Bonds so presented. All Bonds shall be exchangeable upon presentation and surrender thereof at the principal payment office of the Registrar for a Bond or Bonds of Iike maturity and • interest rate and in any authorized denomination,in an aggregate amount equal to the unpaid principal amount of the Bond or Bonds presented for exchange. The Registrar shall be and is hereby authorized to authenticate and deliver exchange Bonds in accordance with the provisions of this Section. Each Bond delivered in accordance with this Section shall be entitled to the benefits and security of this Resolution to the same extent as the Bond or Bonds in lieu of which such Bond is delivered. The District or the Registrar may require the Registered Owner of any Bond to pay a sum sufficient to cover any tax or other governmental charge that may be 320932 . to pf imposed in connection with the transfer or exchange of such Bond. Any fee or charge of the Registrar for such transfer or exchange shall be paid by the District. 17. Mutilated, Lost, or Stolen Bonds. Subject to the provisions of Section 13, entitled "Book-Entry-Only System," upon the presentation and surrender to the Registrar of a mutilated Bond, the Registrar shall authenticate and deliver in exchange therefor a replacement Bond of like maturity, interest rate, and principal amount, bearing a number not contemporaneously outstanding. If any Bond is lost,apparently destroyed,or wrongfully taken, the District,pursuant to the applicable Iaws of the State of Texas and in the absence of notice or knowledge that such Bond has been acquired by a bona fide purchaser, shall execute and the Registrar shall authenticate and deliver a replacement Bond of like maturity, interest rate and principal amount, bearing a number not contemporaneously outstanding. The District or the Registrar may require the Registered Owner of a mutilated Bond to pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith and any other expenses connected therewith, including the fees and expenses of the Registrar. The District or the Registrar may require the Registered Owner of a lost,apparently destroyed or wrongfully taken Bond, before any replacement Bond is issued,to: (1) furnish to the District and the Registrar satisfactory evidence of the ownership of and the circumstances of the loss,destruction or theft of such Bond; (2) furnish such security or indemnity as may be required by the Registrar and the District to hold,them harmless; (3) pay all expenses and charges in connection therewith, including, but not limited to, printing costs, legal fees, fees of the Registrar and any tax or other governmental charge that may be imposed;and (4) meet any other reasonable requirements of the District and the Registrar. If, after the delivery of such replacement Bond, a bona fide purchaser of the original Bond in lieu of which such replacement Bond was issued presents for payment such original Bond, the District and the Registrar shall be entitled to recover such replacement Bond from the person to whom it was delivered or any person taking • therefrom, except a bona fide purchaser, and shall be entitled to recover upon the security or indemnity provided therefor to the extent of any loss, damage, cost or expense incurred by the District or the Registrar in connection therewith. is 320932 • • • If any such mutilated, lost, apparently destroyed or wrongfully taken Bond has become or is about to become due and payable, the District in its discretion may, instead of issuing a replacement Bond,authorize the Registrar to pay such Bond. Each replacement Bond delivered in accordance with this Section shall be entitled to the benefits and security of this Resolution to the same extent as the Bond or Bonds in Iieu of which such replacement Bond is delivered. 18. Cancellation of Bonds. Subject to the provisions on Section 13, entitled "Book-Entry-Only System," all Bonds paid in accordance with this Resolution, and all Bonds in lieu of which exchange Bonds or replacement Bonds are authenticated and delivered in accordance herewith, shall be canceled and destroyed upon the making of proper records regarding such payment. Upon request, the Registrar shall furnish the District with appropriate certificates of destruction of such Bonds. 19. Forms. The form of the Bonds, including the form of the Registrar's Authentication Certificate, the form of Assignment, and the form of Registration Certificate of the Comptroller of Public Accounts of the State of Texas, which shall be attached or affixed to the Bonds initially issued, shall be, respectively, substantially as follows, with such additions, deletions and variations as may be necessary or desirable and not prohibited by this Resolution, including any legend regarding bond insurance if such insurance is obtained by the purchaser: • is 320932 •