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ORDINANCE 12-99
00c_flORDINANCENO.12-99K-c,.-&L“Y9’iARE-ENACTMENTOFANORDNANCEAUTHORIZINGTHEISSUANCEBYTHETOWNOFESTESPARK,COLORADO,ACTINGBYANDTHROUGHITSLIGHTANDPOWERENTERPRISE,OFLIGHTANDPOWERREVENUEBONDS,SERIES1999,INTHEAGGREGATEPRINCIPALAMOUNTOF$3,135,000,FORTHEPURPOSEOFFINANCINGCERTAINIMPROVEMENTSTOTHETOWN’SLIGHTANDPOWERSYSTEM,FUNDINGADEBTSERVICERESERVEFUND,ANDPAYINGTHECOSTSOFISSUANCEOFTHEBONDS;PRESCRIBINGTHEFORMOFSAIDBONDS;PROVIDINGFORTHEIMPOSITIONANDCOLLECTIONOFRATES,FEES,ANDCHARGESFORLIGHTANDPOWERSERVICESANDFACILITIESTOPAYTHESAME;PROVIDINGOTHERDETAILSNCONNECTIONTHEREWITH;ANDDECLARINGANEMERGENCY.WHEREAS,theTownofEstesPark,Colorado,inLarimerCounty,Colorado(the‘Town’)isamunicipalcorporationandpoliticalsubdivisiondulyorganizedandexistingpursuanttothelawsoftheStateofColorado(the“State’);andWHEREAS,theBoardofTrustees(the“Board”)oftheTownhaspreviouslyactedbyOrdinancetorecognizeandconfirmtheexistenceoftheLightandPowerEnterpriseoftheDistrict(the“Enterprise”),suchOrdinancebeingadoptedandeffectiveonSeptember28,1999;andWHEREAS,theBoard,actingassuchandasthegoverningbodyoftheEnterprise,deemsitnecessaryandappropriatetoauthorizetheissuanceoflightandpowerrevenuebondsuponthetermsdescribedherein,forthepurposesof:(i)financingcertainimprovementstothelightandpowerfacilitiesoperatedbytheEnterpriseonbehalfoftheTown,(ii)ftindingadebtservicereservefund,and(iii)payingthecostofissuanceoftheBonds;andWHEREAS,theBonds,issuedbytheTownactingbyandthroughtheEnterprise,arepermittedunderArticleX,Section20oftheColoradoConstitution,tobeissuedwithoutanelection;WI-IEREAS,theTown,actingbyandthroughtheEnterprise,shallauthorizetheissuanceoflightandpowerrevenuebondsintheaggregateprincipalamountof$3,135,000,tobeissuedinoneseriesasLightandPowerRevenueBonds,Series1999(the“Bonds”);andWHEREAS,theTownpreviouslyadoptedthisOrdinanceasaparametersordinance,authorizingtheBondstobeissuedwithamaximumneteffectiveinterestrateandprovidingthatfinaldetailsinconnectionwiththeBondswouldbeestablishedinasupplementalresolutiontobeadoptedatalaterdate;thisOrdinancewassenttoanewspaperofgeneralcirculationintheTownforpublicationinfullasrequiredbylaw;however,thenewspaperfailedtopublishtheOrdinanceinitsentirety;thisOrdinanceisbeingre-enactedatthistimewithanemergencydeclarationsoas#575879vi2 C)toallowtheTowntoissuetheBondsasscheduledinlateDecemberof1999inordertomeetmarketingdeadlinesjeopardizedbytheincompletepublication;andWHEREAS,therehasbeensubmittedtotheBoardtheformof(i)thisOrdinanceauthorizingtheissuanceoftheBonds,(ii)theRegistrarAgreement(asdefinedhereinafter),(iii)theContinuingDisclosureCertificate(asdefinedhereinafter),and(iv)theBondPurchaseAgreement(asdefinedhereinafter);andWHEREAS,theBoarddesirestoapprovetheformofsuchdocuments,authorizetheexecutionthereof,andauthorizetheissuanceoftheBondspursuanttothisOrdinance;andWHEREAS,pursuanttoSection18-8-308,Section32-1-902(3),andSection24-18-110,ColoradoRevisedStatutes(‘C.RS.”),nomemberoftheBoardhasanysubstantialfinancialinterestinthesubjectofthisOrdinance,oranypersonalorprivateinterest,whetherornotfinancial,inthesubjectofthisOrdinance;andWHEREAS,bondsoftheTownmaybesoldbypublicorprivatesaletothebestadvantageoftheTownandtheBoarddeterminedtoselltheBondsatanegotiatedsaleafterrequestingproposalsfromprospectivepurchasers;andWHEREAS,theBondswillbesoldtoGeorgeK.Baum&Company,Denver,Colorado,whichfirmwillactastheUnderwriterfortheBonds.WHEREAS,theBoardThitherdeterminedtoengageJamesCapitalAdvisors,Inc.,ofDenverColoradoasfinancialadvisortotheTown(“JamesCapitalAdvisors”orthe‘FinancialAdvisor”);THETOWNOFESTESPARK,COLORADO,ORDAINS:Section1.Definitions.InthisOrdinancethefollowingtermshavethefollowingrespectivemeaningsunlessthecontexthereofclearlyrequiresotherwise:AcquireorAcquisition:thedesign,construction,reconstruction,purchase,lease,gift,transfer,assignment,optiontopurchase,grantfromthefederalgovernmentoranypublicbodyorotherperson,endowment,bequest,devise,installation,condemnation,contract,orotheracquirementorotherprovision,oranycombinationthereof,offacilities,otherproperty,anyproject,oraninteresttherein.AdditionalParityBonds:anyParity’SecuritiesissuedaftertheissuanceoftheBonds.Board:theBoardofTrusteesisthegoverningbodyoftheTown,actingassuchor,asthecontextrequires,actingasthegoverningbodyoftheEnterprise.BondYear:thetwelve(12)monthscommencingontheseconddayofNovemberinagivenyearandendingonthefirstdayofNovemberthenextsucceedingcalendaryear.#575S79vi3 00Bonds:theTownofEstesPark,Colorado,LightandPowerRevenueBonds,Series1999,intheaggregateprincipalamountof$3,135,000,authorizedbythisOrdinance.CombinedMaximumAnnualDebtServiceRequirements:thesumofthemaximumannualpaymentsofprincipalof,andinterestandanypremiumontheBondsandallissuesofParitySecuritiesandSubordinateSecuritiesforwhichthecomputationisbeingmade.CommercialBank:astateornationalbankortrustcompanywhichisamemberoftheFederalDepositInsuranceCorporationandoftheFederalReserveSystem,whichhascapitalandsurplusof$10,000,000ormoreandwhichislocatedwithintheUnitedStatesofAmerica.ComparableBondYear:inconnectionwithanyFiscalYear,theBondYearwhichendsinsuchFiscalYear.Forexample,fortheFiscalYearcommencingonJanuary1,2000,theComparableBondYearfortheBondsendsin2000onNovember1.ConstructionAccount:thespecialaccountcreatedandreferredtoinSection3.01hereofContinuingDisclosureCertificate:theContinuingDisclosureCertificate,insubstantiallytheformfiledwiththeTownatthetimeofintroductionofthisOrdinance,tobeexecutedbytheTownanddatedthedateofissuanceanddeliveryoftheBonds.CostoftheProject:alloranypartofthecostofAcquisition,ImprovementandEquipmentofalloranpartoftheProject,includingwithoutlimitationalloranyproperty,rights,easements,privileges,agreements,andfranchisesdeemedbytheTowntobenecessaryorusefulandconvenienttherefororinconnectiontherewith,interestordiscountontheBonds,costsofissuanceoftheBonds,engineeringandinspectioncostsandlegalexpenses,costsoffinancial,professional,andotherestimatesandadvice,contingencies,anyadministrative,operating,andotherexpensesoftheTownpriortoandduringsuchAcquisition,ImprovementandEquipmentandadditionallyduringaperiodofnotexceedingoneyearafierthecompletionthereofasmaybeestimatedanddeterminedbytheTown,andallsuchotherexpensesasmaybenecessaryorincidenttothefinancing,Acquisition,Improvement,Equipment,andcompletionoftheProjectoranypartthereof,andtheplacingofthesameinoperation,provisionofreservesforpaymentorsecurityofprincipaloforinterestontheBondsduringoraftersuchAcquisition,ImprovementorEquipmentastheTownmaydetermine,andalsoreimbursementstotheTownortoanyPersonofanymoneystheretoforeexpendedforthepurposesoftheTownorotherpublicbodyofanymoneystheretoforeexpendedfororinconnectionwiththeProject.C.R.S.:ColoradoRevisedStatutes,asamended.DebtServiceRequirements:theprincipalof,andintereston,andanypremiumdueinconnectionwiththeredemptionoftheBonds,anyParitySecurities,oranyothersecurities#575879vi4 0•0payablefromthePledgedRevenues,excludinganyamountsactuallyonhandandirrevocablycommittedtothepaymentofDebtServiceRequirements.DebtServiceReserveAccount:thespecialaccountcreatedandreferredtoinSection3.05hereofEnterprise:theLightandPowerEnterpriseconfirmedbyOrdinanceoftheTownonSeptember28,1999.EventofDefault:anyoneoftheeventsdescribedinSection8.01hereofExcessInvestmentEarningsAccount:thespecialaccountcreatedandreferredtoinSection3.10hereofFederalSecurities:bills,certificatesofindebtedness,notes,orbondswhicharedirectobligationsof,orthe.principalandinterestofwhichobligationsareunconditionallyguaranteedby,theUnitedStatesofAmerica.FinanceOfficer:theDirectorofFinanceoftheTown.FiscalYear:thetwelve(12)monthscommencingonthefirstdayofJanuaryofanycalendaryearandendingonthelastdayofDecemberofsuchcalendaryearorsuchothertwelve-monthperiodasmayfromtimetotimebedesignatedbytheBoardorbyStatestatuteastheFiscalYearoftheTown.ImproveorImprovement:theaddition,extension,enlargement,betterment,replacementorimprovementoranycombinationthereof,offacilities,otherproperty,anyproject,oranyinteresttherein,butnotincludingreconstruction,replacement,repairorotherrenewalofexistingfacilitiesthatdoesnotincreasethecapacityoftheLightandPowerFacilities.Income:allincomefromtherates,fees,andchargesimposedbytheTownforthelightandpowerfacilitiesandservices,togetherwithallinterestincomeoftheLightandPowerEnterpriseFund;providedhowever,thatnoretainedearningsshalleverbeincludedasIncome.Insurer:FinancialSecurityAssuranceInc.,aNewYorkstockinsurancecompany,oranysuccessortheretoorassigneethereof.InterestPaymentDate:MayIandNovember1,2000andMay1andNovember1ofeachyearthereafter,throughandincludingNovember1,2014.LightandPowerEnterpriseFund:theenterprisefundoftheTownusedtoaccountforrevenuesandexpendituresoftheEnterprise.#573%79v15 00LightandPowerFacilities:alllightandpowerfacilitiesoftheTownusedinprovidingelectricpowertocustomers,includingbutnotlimitedtotwoduplexsubstations,distributionandtransmissionfacilities,andanylightandpowerfacilitiesspecificallyaddedtothisdefinitionfromtimetotimebyOrdinanceoftheTown.MaximumAnnualDebtServiceRequirements:withrespecttotheBondsandeachissueofParitySecuritiesforwhichthecomputationisbeingmade,thelargestamountofDebtServiceRequirementscomingdueinanysingleBondYearwhensuchBondsorParitySecuritiesareOutstanding.MunicipalBondInsurancePolicy:themunicipalbondinsurancepolicyissuedbytheInsurerinsuringthepaymentwhendueoftheprincipalofandinterestontheBondsasprovidedtherein.OperationandMaintenanceAccount:thespecialaccountcreatedandreferredtoinSection3.03hereof.OperationandMaintenanceExpenses:suchreasonableandnecessarycurrentexpensesoftheEnterprise,paidoraccrued,ofoperating,maintainingandrepairingtheLightandPowerFacilitiesasmaybedeterminedbytheBoard.Thetermmayinclude,attheoptionoftheBoard,exceptaslimitedbycontractorothenviselimitedbylaw,withoutlimitingthegeneralityoftheforegoing:(a)Engineering,auditing,legalandotheroverheadexpensesdirectlyrelatedandreasonablyallocabletotheadministration,operationandmaintenanceoftheLightandPowerFacilities;(b)InsuranceandsuretybondpremiumsappertainingtotheLightandPowerFacilities;(c)Thereasonablechargesofanypayingagent,registrar,transferagent,depositoryorescrowbankappertainingtotheLightandPowerFacilitiesoranybondsorothersecuritiesissuedtherefor;(d)Annualpaymentstopension,retirement,healthandhospitalizationfundsappertainingtotheLightandPowerFacilities;(e)Anyassessmentsorfranchisefees;(f)OrdinaryandcurrentrentalsofequipmentorotherpropertyunderanyoperatingleasesandrentalswithrespecttocapitalleasesifthepaymentofsuchcapitalleasesismadesubjecttoannualappropriationbytheBoard;#575879vi6 00(g)Contractualservices,professionalservices,salaries,administrativeexpenses,andcostsoflaborappertainingtotheLightandPowerFacilitiesandthecostofmaterialsandsuppliesusedforcurrentoperationorroutinemaintenanceandrepairoftheLightandPowerFacilities;(h)RepairsandreplacementsofequipmentandotherpartsoftheLightandPowerFacilitiesnecessarytomaintaintherevenueproducingcapacitythereof(i)ThecostsincurredinthecollectionofalloranypartoftheIncome;(j)AllcoststopurchasepowerandanycostsofutilityservicesfurnishedtotheLightandPowerFacilities;and(k)ReasonableindirectadministrativecostsincurredforthebenefitoftheLightandPowerFacilities;(I)Costsofanyprofessionalservicesrelatedtothecalculation,paymentorapplicationforrefundofarbitragerebate;(m)AnyothersuchexpensesconsideredindeterminingtheamountoffeesandchargesimposedtocovercostsofoperationandmaintenanceoftheLightandPowerFacilities.Exceptasexpresslyprovidedherein,“OperationandMaintenanceExpenses”doesnotinclude:(a)Anyallowancefordepreciation;(b)Anypaymentsinlieuoftaxes;(c)AnycostsofImprovement,extensions,orbetterments;(d)Anyaccumulationofreservesforcapitalreplacements;(e)AnyaccumuLationofreservesforoperation,maintenance,orrepairoftheLightandPowerFacilities;(0Anyallowancefortheredemptionofanybondsorothersecuritiesorthepaymentofanyinterestthereon;(g)AnyliabilitiesincurredintheAcquisitionofanypropertiescomprisingtheLightandPowerFacilitiesoranyexistingpropertiescomprisingtheLightandPowerFacilitiesoranycombinationthereof;and575S79vi7 o0(h)Anyothergroundoflegalliabilitynotbasedoncontract.Ordinance:thisOrdinanceauthorizingtheissuanceoftheBonds,includinganyamendmenthereto.Outstanding:asofanyparticulardate,alltheBonds,AdditionalParityBonds,ParitySecuritiesoranysuchothersecuritiespayableinwholeorinpartfromthePledgedRevenueswhichhavebeenauthorized,executedanddelivered,exceptthefollowing:(a)AnyBond,AdditionalParityBond,ParitySecurityorothersecuritycanceledbythePayingAgentorotherwiseonbehalfoftheTownonorbeforesuchdate;(b)AnyBond,AdditionalParityBond,ParitySecurityorothersecurityheldbyoronbehalfoftheTown;(c)AnyBond,AdditionalParityBond,ParitySecurityorothersecurityoftheTownforthepaymentortheredemptionofwhichmoneysorFederalSecuritiessufficient(includingtheknownminimumyieldavailableforsuchpurposefromFederalSecuritiesinwhichsuchamountwhollyorinpartmaybeinitiallyinvested)topayalloftheDebtServiceRequirementsofsuchBond,AdditionalParityBond,ParitySecurityorothersecuritytothematuritydateorspecifiedRedemptionDatethereofshallhavetheretoforebeendepositedinescroworintrustwithaTrustBankforthatpurpose;and(d)Anylost,destroyed,orwrongfullytakenBond,AdditionalParityBond,ParitySecurityorothersecurityoftheTowninlieuoforinsubstitutionforwhichanotherbondorothersecurityshallhavebeenexecutedanddelivered.Owner:theholderofanybearerinstrumentorregisteredownerofanyregisteredinstrument.ParitySecurities:bonds,warrants,notessecurities,leasesorothercontractspayablefromthePledgedRevenuesequallyoronaparitywiththeBonds.PayingAgent:TheBankofCherryCreek,N.A.,oritssuccessor,whichshallperformthefunctionofpayingagentwithrespecttotheBonds.PermittedInvestments:anyinvestmentwhich,asofthetimemade,ispermittedbythelawsoftheStateandthepoliciesoftheTownpertainingtoTowninvestmentstobemadewithTownfunds;providedthatsuchinvestmentmustberatedatleastinvestmentgradebyStandard&Poor’sRatingsServicesandbyMoody’sInvestorsService,Inc.i575S79vi8 00Person:anyindividual,firm,partnership,corporation,company,association,jointstockassociation,limitedliabilitycompanyorbodypoliticoranytrustee,receiver,assigneeorsimilarrepresentativethereof.PledgedRevenues:allIncomeremainingafterthedeductionofOperationandMaintenanceExpenses.PrincipalandInterestAccount:thespecialaccountcreatedandreferredtoinSection3.04hereof.Project:(i)financingtherelocationandimprovementofoneoftheTown’stwoelectricsubstationsandcertainotherimprovementstotheTown’slightandpowerfacilities;(ii)fundingtheDebtServiceReserveAccount;and(iii)payingthecostsofissuingtheBonds.RecordDate:thefifteenthdayofthecalendarmonthnextprecedinganInterestPaymentDatefortheBonds.RedemptionDate:thedatefixedfortheredemptionpriortomaturityofanyBondsorotherdesignatedsecuritiespayablefromthePledgedRevenuesinanynoticeofpriorredemptiongivenbyoronbehalfoftheTown.Registrar:TheBankofChenyCreek,N.A.,oritssuccessorsandassigns,whichshallperformthefunctionofbondregistrarwithrespecttotheBonds.RegistrarAgreement:theagreementdatedasofDecember1,1999,betweentheTownandtheRegistrarandPayingAgent.SecurityorSecurities:anybondissuedbytheTownoranyotherevidenceoftheadvancementofmoneytotheTown.State:theStateofColorado.SubordinateBondsorSubordinateSecurities:bondsorsecuritiespayablefromthePledgedRevenueshavingalienthereonsubordinateorjuniortothelienthereonoftheBonds.SuperiorBondsorSuperiorSecurities:bondsorsecuritiespayablefromthePledgedRevenueshavingalienthereonsuperiororseniortothelienthereonoftheBonds.Town:theTownofEstesPark,inLarimerCounty,Colorado,actingassuchor,asthecontextrequires,actingbyandthrough,andastheoperatorof,theEnterprise.#575S79vI9 CCTrustBank:aCommercialBankwhichisauthorizedtoexerciseandisexercisingtrustpowers.Underwriter:GeorgeK.Baum&Company,Denver,Colorado,anditsassociates,ifany.Section1.Construction.ThisOrdinance,exceptwherethecontextbyclearimplicationhereinotherwiserequires,shallbeconstruedasfollows:(1)Wordsinthesingularincludetheplural,andwordsinthepluralincludethesingular.(2)Wordsinthemasculinegenderincludethefeminineandtheneuter,andwhenthesensesoindicateswordsoftheneutergenderrefertoanygender.(3)Sections,subsections,paragraphsandsubparagraphsmentionedbynumber,letter,orotherwise,correspondtotherespectivesections,subsections,paragraphsandsubparagraphsofthisOrdinancesonumberedorotherwisesodesignated.(4)TheleadlinesappliedtosectionsandsubsectionsofthisOrdinanceareinsertedonlyasamatterofconvenienceandeaseofreferenceandinnowaydefineorlimitthescopeorintentofanyprovisionsofthisOrdinance.Section2.Authorization.TheBonds,payableastoallDebtServiceRequirementssolelyoutofPledgedRevenues,areherebyauthorizedtobeissuedintheaggregateprincipalamountof$3,135,000inaccordancewiththeColoradoConstitution,particularlyArticleX,Section20thereof,Title31,Article15,Parts3and7,C.R.S.,andallotherlawsthereuntoappertaining.Section3.BondDetails.TheBondsshallbeissuedbytheBoard,asthegoverningbodyoftheEnterprise,infullyregisteredformindenominationsof$5,000oranyintegralmultiplethereof,providedthatnoBondshallbeissuedinanydenominationlargerthantheaggregateprincipalamountmaturingonthematuritydateofsuchBondandthatnoBondshallbemadepayableonmorethanonematuritydate.TheBondsshallbeissuedintheaggregateprincipalamountof$3,135,000anddatedDecember1,1999.shallbenumberedfromoneupward,andshallmatureandbearinterestattheratessetforthbelow:#575879v110 0.0MaturityDate(November1)PrincipalAmountInterestRate2000$160,0004.000%2001155,0004.300%2002160,0004.400%2003170,0004.500%2004175,0004.600%2005185,0004.700%2006195,0004.800%2007200,0004.900%2008210,0005.000%2009220,0005.050%2010235,0005.150%2011245,0005.250%2012260,0005.350%2013275,0005.400%2014290,0005.450%InterestispayablecommencingonMay1,2000,andsemiannuallythereafteronNovember1andMayIofeachyear,exceptthatBondswhicharereissuedupontransfer,exchange,orotherreplacementshallbearinterestattheratesshownabovefromthemostrecentinterestpaymentdatetowhichinteresthasbeenpaidordulyprovidedfor,orifnointeresthasbeenpaid,fromthedateoftheBonds.ThemaximumneteffectiveinterestrateauthorizedfortheBondsis6.00%.TheactualneteffectiveinterestrateontheBondsdoesnotexceedsuchmaximumrate.Section4.BookEntw.NotwithstandinganycontraryprovisionofihisOrdinance,theBondsinitiallyshallbeevidencedbyoneBondforeachmaturityindenominationsequaltotheaggregateprincipalamountoftheBondsofsuchmaturity.SuchinitiallydeliveredBondsshallberegisteredinthenameof“Cede&Co.asnomineeforDTC.TheBondsmaynotthereafterbetransferredorexchangedexcept:(1)toanysuccessorofDTCoritsnominee,whichsuccessormustbebotha“clearingcorporation”asdefinedinSection4-8-102(3),C.R.S.,andaqualifiedandregistered“clearingagency”underSection17AoftheSecuritiesExchangeActof1934,asamended;or(2)upontheresignationofDTCorasuccessororanewdeposhon’underpart(1)orthispart(2)ofthissection,oradeterminationbytheBoardthatDTCorsuchsuccessororanewdepositoryisnolongerabletocarryoutitsfunctions,andthedesignationbytheBoardofanotherdepositoryacceptabletotheBoardandtothedepositorythenholdingtheBonds,whichnewdepositorymustbebotha“clearingcorporation”asdefinedinSection4-8-102(3),C.R.S.,andaqualifiedandregistered“clearingagency”underSection17AoftheSecuritiesExchangeActof1934,asamended,tocarryoutthefunctionsofDTCorsuchsuccessornewdepository;or#575879vi11 00(3)upontheresignationofDTCorasuccessorornewdepositoryunderpart(1)orpart(2)ofthissection,oradeterminationoftheBoardthatDTCorsuchsuccessorornewdepository’isnolongerabletocarryoutitsfunctions,andthefailurebytheBoard,afterreasonableinvestigation,tolocateanotherdepositoryunderpart(2)ofthissectiontocarryoutsuchdepositoryfunctions.InthecaseofatransfertoasuccessorofDTCoritsnomineeasreferredtoinpart(1)above,uponreceiptoftheoutstandingBondsbytheRegistrartogetherwithwritteninstructionsfortransfersatisfactorytotheRegistrar,anewBondforeachmaturityoftheBondsthenoutstandingshallbeissuedtosuchsuccessorornewdepository,asthecasemaybe,oritsnominee,asisspecifiedinsuchwrittentransferinstructions.Inthecaseofaresignationordeterminationunderpart(3)aboveandthefailureafterreasonableinvestigationtolocateanotherqualifieddepositoryfortheBondsasprovidedinpart(3)above,anduponreceiptoftheoutstandingBondsbytheRegistrar,togetherwithwritteninstructionsfortransfersatisfactorytotheRegistrar,newBondsshallbeissuedindenominationsof£5,000oranyintegralmultiplethereofregisteredinthenamesofsuchpersons,andinsuchauthorizeddenominationsasarerequestedinsuchwrittentransferinstructions;providedhowever,thattheRegistrarshallnotberequiredtodeliversuchnewBondswithinaperiodoflessthan60daysfromthedateofreceiptofsuchwrittentransferinstructions.TheBoardandtheRegistrarshallbeentitledtotreattheOwnerofanyBondastheabsoluteownerthereofforallpurposeshereofandanyapplicablelaws,notwithstandinganynoticetothecontraryreceivedbyanyorallofthemandtheBoardandtheRegistrarshallhavenoresponsibilityfortransmittingpaymentsornoticestothe‘BeneficialOwners”oftheBondsheldbyDTCoranysuccessorornewdepositorynamedpursuanttothissection.TheBoardandtheRegistrarshallendeavortocooperatewithDTCoranysuccessorornewdepositorynamedpursuanttopart(I)orpart(2)aboveineffectuatingpaymentoftheprincipalamountoftheBondsuponmaturityorpriorredemptionbyarrangingforpaymentinsuchamannerthatfundsrepresentingsuchpaymentsareavailabletothedepositoryonthedatetheyaredue.UponanypartialredemptionofanymaturityoftheBonds,Cede&Co.,(oritssuccessor)initsdiscretionmayrequesttheTowntoissueandauthenticateanewBondorshallmakeanappropriatenotationontheBondindicatingthedateandamountofprepayment,exceptinthecaseoffinalmaturity,inwhichcasetheBondmustbepresentedtotheRegistrarpriortopayment.TherecordsofthePayingAgentshallgoverninthecaseofanydisputeastotheamountofanypartialprepaymentmadetoCede&Co.(oritssuccessor).Section5.PaymentofBonds:PavingAgentandRegistrar.TheprincipalofanyBondispayableinlawfulmoneyoftheUnitedStatesofAmericatotheOwnerofsuchBondattheprincipalofficeofthePayingAgent.PresentationandsurrenderoftheBondsisrequireduponmaturityorpriorredemptionthereofifanyBondshallnotbepaiduponsuchpresentationandsurrenderatoraflermaturity,itshallcontinuetodraworaccrueinterestattheinterestratebornebysaidinstrumentuntilitispaidinfull.#575879v112 C0InterestontheBondsispayablelothepersoninwhosenamesuchBondisregistered,athisaddressasitappearsontheregistrationbooksmaintainedbyoronbehalfoftheTownbytheRegistrar,atthecloseofbusinessontheRecordDate,irrespectiveofanytransferorexchangeofsuchBondsubsequenttosuchRecordDateandpriortosuchinterestpaymentdate.SuchpaymentshallbemadebycheckordraftmailedonorbeforetheinterestpaymentdatetosuchOwner.AllsuchpaymentsshallbemadeinlawfulmoneyoftheUnitedStatesofAmerica,withoutdeductionforservicesoftheRegistrarorPayingAgent.IfthedateformakinganypaymentorperforminganyactionhereundershallbealegalholidayoradayonwhichtheprincipalofficeoftheRegistrarisauthorizedorrequiredbylawtoremainclosed,suchpaymentmaybemadeoractperformedonthenextsucceedingdaywhichisnotalegalholidayoradayonwhichtheprincipalofficeoftheRegistrarisauthorizedorrequiredbylawtoremainclosed.TheprincipalofandinterestontheBondsshallbepaidinaccordancewiththetermsoftheRegistrarAgreement.Section6.PriorRedetñption.TheBondsmaturingonandbeforeNovember1,2009arenotsubjecttoredemptionpriortotheirrespectivematurities.BondsmaturingonandafterNovember1,2010aresubjecttoredemptionpriortomaturity,attheoptionoftheTown,asawholeorinintegralmultiplesof$5,000,onNovember1,2009,andonanydatethereafter,ataredemptionpriceofparplusaccruedinterest,withoutredemptionpremium.IflessthanalloftheBondswithinamaturitydatearetoberedeemedonanypriorredemptiondate,theBondstoberedeemedshallbeselectedbylotnotlessthanfifty(50)dayspriortothedatefixedforredemption,astheRegistrarshalldetermine.TheBondsshallberedeemedonlyinintegralmultiplesof$5,000.IntheeventaBondisofadenominationlargerthan$5,000,aportionofsuchBondmayberedeemed,butonlyintheprincipalamountof$5,000oranyintegralmultiplethereofSuchBondshallbetreatedforthepurposesofredemptionasthatnumberofBondswhichresultsfromdividingtheprincipalamountofsuchBondby$5,000.IntheeventanyoftheBondsorportionsthereof(whichshallbeinamountsequalto$5,000oranyintegralmultiplethereof)arecalledforredemptionasaforesaid,noticethereofidentiingtheBondsorportionsthereoftoberedeemedwillbegivenbytheRegistrarbymailingacopyoftheredemptionnoticebyfirstclassmail(postageprepaid)notlessthanthirty(30)dayspriortothedatefixedforredemption,totheOwnerofeachBondtoberedeemedinwholeorinpartattheaddressshownontheregistrationbooksmaintainedbytheRegistrar.FailuretogivesuchnoticebymailingtoanyOwner,oranydefecttherein,shallnotaffectthevalidityofanyprocecdingfortheredemptionofotherBonds.AllBondssocalledforredemptionwillceasetobearinterestafterthespecifiedredemptiondate,providedfundsfortheirredemptionareondepositattheplaceofpaymentatthattime.Inadditiontotheforegoingnotice,furthernoticemaybegivenbythePayingAgentinordertocomplywiththerequirementsofanydepositoryholdingtheBondsbutnodefectinsaidfurther#575879vi13 CCnoticenoranyfailuretogivealloranyportionofsuchfurthernoticeshallinanymannerdefeattheeffectivenessofacallforredemptionifnoticethereofisgivenasaboveprescribed.Section7.FormofBonds.TheBondsshallbesignedwiththemanualorfacsimilesignatureoftheMayoroftheTown,sealedwithafacsimileormanualimpressionofthesealoftheTown,attestedbythemanualorfacsimilesignatureoftheTownClerk,andcountersignedbytheTownTreasurer.ShouldanyofficerwhosemanualorfacsimilesignatureappearsontheBondsceasetobesuchofficerbeforedeliveryoftheBonds,suchmanualorfacsimilesignatureshallneverthelessbevalidandsufficientforallpurposes.TheBondsshallbeinsubstantiallythefollowingform:#575879v114 CC(FormofBond)No.R-$UNITEDSTATESOFAMERICASTATEOFCOLORADOCOUNTYOFLARIMERTOWNOFESTESPARKLIGHTANDPOWERREVENUEBOND,SERIES1999ORIGINALINTERESTRATEMATURITYDATEISSUEDATECUSIP%November1,____December1,1999REGISTEREDOWNER:PRINCIPALAMOUNT:DOLLARSTheTownofEstesPark(the‘Town),intheCountyofLarimer,intheStateofColorado,amunicipalcorporationdulyorganizedandoperatingundertheconstitutionandlawsoftheStateofColorado,forvaluereceived,herebypromisestopaytotheregisteredownernamedabove,orregisteredassigns,onthematurity’datespecifiedaboveoronthedateofpriorredemption,theprincipalamountspecifiedabove.InlikemannertheTownpromisestopayinterestonsuchprincipalamount(computedonthebasisofa360-dayyearoftwelve30-daymonths)fromtheinterestpaymentdatenextprecedingthedateofregistrationandauthenticationofthisBond,unlessthisBondisregisteredandauthenticatedpriortoMay1,2000,inwhicheventthisBondshallbearinterestfromDecember1,1999,attheinterestrateperannumspecifiedabove.InterestonthisBondispayablesemiannuallyonMay1andNovember1eachyear,commencingonMay1,2000,untiltheprincipalamounthereofispaidatmaturity.TheprincipalofthisBondispayableinlawffilmoneyoftheUnitedStatesofAmericatotheregisteredowneruponmaturityorpriorredemptionandpresentationandsurrenderhereofatTheBankofCherryCreek,N.A.,inDenver,Colorado,orattheprincipalofficeofitssuccessor,asPayingAgent.PaymentofeachinstallmentofinteresthereonshallbemadetotheregisteredownerhereofwhosenameshallappearontheregistrationbooksoftheTownmaintainedbyoronbehalfoftheTownbyTheBankofCherryCreek,N.A.,inDenver,Colorado,orbyoronbehalfofitssuccessorasRegistrar,atthecloseofbusinessonthefifteenthdayofthecalendarmonthnextprecedingeachinterestpaymentdate(the“RecordDate”),andshallbepaidbycheckordraftmailedonorbeforetheinterestpaymentdatetosuchregisteredownerathisaddressasitappearsonsuchregistrationbooks.#575879v115 00IfthedateformakinganypaymentorperforminganyactionshallbealegalholidayoradayonwhichtheprincipalofficeofthePayingAgentisauthorizedorrequiredbylawtoremainclosed,suchpaymentmaybemadeoractperformedonthenextsucceedingdaywhichisnotalegalholidayoradayonwhichtheprincipalofficeofthePayingAgentisauthorizedorrequiredbylawtoremainclosed.BondsofthisseriesmaturingonandbeforeNovember1,2009,arenotsubjecttooptionalredemptionpriortotheirmaturities.BondsofthisseriesmaturingonandafterNovember1,2010,aresubjecttoredemptionpriertomaturity,attheoptionoftheTown,asawholeorinintegralmultiplesof$5,000,andiflessthananentirematurityistoberedeemed,thenbylotwithinsuchmaturity,onNovember1,2009,andonanydatethereafter,uponpaymentofparandaccruedinterest,withoutredemptionpremium.ThisBondisoneofaseriesaggregatingThreeMillionOneFlundredThirty-FiveThousandDollars($3,135,000)parvalue,alloflikedate,tenor,andeffectexceptastonumber,principalamount,interestrate,anddateofmaturity,issuedbytheBoardofTrusteesoftheTownofEstesPark,intheCountyofLarimer,intheStateofColorado,forthepurposeof:(i)financingtherelocationandimprovementofoneoftheTown’stwoelectricsubstationsandcertainotherimprovementstotheTown’slightandpowerfacilities;(ii)findingadebtsen’icereservefund;(iii)and(iv)payingthecostsofissuingtheBonds.ThisBondisissuedundertheauthorityofandinfillconformitywiththeconstitutionoftheStateofColorado;Title31Article15,Parts3and7,ColoradoRevisedStatutes;allotherlawsoftheStateofColoradothereuntoenabling;andpursuanttotheBondOrdinance.Itisherebyrecited,certified,andwarrantedthatalloftherequirementsoflawhavebeenfullycompliedwithbytheproperofficersinissuingthisBond.ThisBondisaspecial,limitedobligationpayablesolelyoutofandsecuredbyanirrevocableandfirstlien(butnotnecessarilyanexclusivesuchlien)onthePledgedRevenues,asmorespecificallyprovidedintheBondOrdinance.ThisBonddoesnotconstituteadebtoranindebtednessoramultiple-fiscalyeardebtorotherfinancialobligationoftheTownwithinthemeaningofanyconstitutionalorstatutory’provisionorlimitation.ThisBondisnotpayableinwholeorinpartfromtheproceedsofgeneralpropertytaxesoranyotherformoftaxation,andthefullfaithandcreditoftheTownisnotpledgedforthepaymentoftheprincipaloforinterestonthisBond.Paymentoftheprincipa’ofandinterestonthisBondistobemadesolelyfrom,andassecurityforsuchpaymenttherearcirrevocably(butnotnecessarilyexclusively)pledged,pursuanttotheBondOrdinancc,twospecialaccounts,therebyidentifiedasthePrincipalandInterestAccountandtheDebtServiceReserveAccount,intowhichtheBoardofTrustees(the“Board”)oftheTown,actingasthegoverningbodyoftheLightandPowerEnterpriseoftheTown,hascovcnantedintheBondOrdinancetopay,fromcertainrevenuesderivedfromtheoperationanduscofandotherwisepertainingtotheLightandPowerFacilitiesoftheTown(the“Income’asdefinedintheBondOrdinance)afterprovisionismadeonlyforthepaymentofallnecessaryandreasonablecurrentexpensesofoperating,maintainingandrepairingtheLightandPowerFacilities(suchremainingrevenuesbeingreferredtoasthe“PledgedRevenues”),sumssufficienttopaywhenduetheprincipalofandinterestontheBondsandanyparitysecuritiespayablefromsuchrevenues.575%79vI16 00Itisherebyrecited,ccrtifiedandwarrantedthatforthepaymentoftheprincipalofandinterestonthisBond,theTownhascreatedandwillmaintainsaidspecialfundsandwilldepositthePledgedRevenuestherein,andoutofsaidspecialfunds,asanirrevocablechargethereon,willpaytheprincipalofandinterestonthisBondinthemannerprovidedbytheBondOrdinance.TheBondsofthisissueareequitablyandratablysecuredbythelienonthePledgedRevenues.Bondsandothertypesofsecurities,inadditiontotheBondsofthisissue,subjecttoexpressedconditions,maybeissuedandmadepayablefromthePledgedRevenueshavingalienthereonsubordinateandjuniortothelienoftheBondsofthisissueor,subjecttoadditionalexpressedconditions,havingalienthereononaparitywiththelienofsuchBondsinaccordancewiththeprovisionsoftheBondOrdinance.TheBoard,actingasthegoverningbodyoftheLightandPowerEnterpriseoftheTown,covenantsandagreeswiththeRegisteredOwnerthatitwillkeepandwillperformallofthecovenantsofthisBondandoftheBondOrdinance.ReferenceismadeherebytotheBondOrdinance,andtoanyandallmodificationsandamendmentsthereof,foradescriptionoftheprovisions,termsandconditionsuponwhichtheBondsofthisissueareissuedandsecured,including,withoutlimitation,thenatureandextentofthesecurityfortheBonds,provisionswithrespecttothecustodyandapplicationoftheproceedsoftheBonds,thecollectionanddispositionoftherevenuesandmoneyschargedwithandpledgedtothepaymentoftheprincipalofandinterestontheBonds,thetermsandconditionsonwhichtheBondsareissued,adescriptionofthespecialfundsreferredtoaboveandthenatureandextentofthesecurityandpledgeaffordedtherebyforthepaymentoftheprincipalofandinterestontheBonds,andthemannerofenforcementofsaidpledge,aswellastherights,duties,immunitiesandobligationsoftheTownandthemembersofitsBoard,actingassuchandasthegoverningbodyoftheLightandPowerEnterpriseoftheTown,andalsotherightsandremediesoftheregisteredownersoftheBonds.TotheextentandintherespectspermittedbytheBondOrdinance,theprovisionsoftheBondOrdinance,oranyinstrumentamendatorythereoforsupplementalthereto,maybemodifiedoramendedbyactionoftheBoardtakeninthemannerandsubjecttotheconditionsandexceptionsprovidedintheBondOrdinance.ThepledgeofrevenuesandotherobligationsoftheTownanditsLightandPowerEnterpriseundertheBondOrdinancemaybedischargedatorpriortothematurityorpriorredemptionoftheBondsuponthemakingofprovisionforthepaymentoftheBondsonthetermsandconditionssetforthintheOrdinance.Bondsofthisserieswillberedeemedonlyinintegralmultiplesof$5,000.IntheeventaBondisofadenominationlargerthan$5,000,aportionofsuchBondmayberedeemed,butonlyintheprincipalamountof$5,000oranyintegralmultiplethereofSuchBondwillbetreatedforthepurposesofredemptionasthatnumberofBondswhichresultsfromresultsfromdividingtheprincipalamountofsuchBondby$5,000.#575879v117 00Noticeofpriorredemptionshallbegivenbymailingacopyoftheredemptionnotice,notlessthanthirty(30)dayspriortothedatefixedforredemption,totheregisteredownerofthisBondattheaddressshownontheregistrationbooksmaintainedbytheRegistrar,inthemannersetforthintheauthorizingBondOrdinance.AllBondscalledforredemptionwillceasetobearinterestafterthespecifiedredemptiondate,providedfundsfortheirredemptionareondepositattheplaceofpaymentatthattime.*TheTownandtheRegistrarshallnotberequiredtoissueortransferanyBondsduringtheperiodbeginningonanydateofselectionofBondstoberedeemedandendingattheopeningofbusinessonthedayonwhichtheapplicablenoticeofredemptionismailed.TheRegistrarshallnotberequiredtotransferanyBondsselectedorcalledforredemption,inwholeorinpart.TheTown,thePayingAgent,andtheRegistrarmaydeemandtreattheregisteredownerofanyBondastheabsoluteownerthereofforallpurposes(whetherornotsuchBondshallbeoverdue)andanynoticetothecontrary’shallnotbebindingupontheTown,thePayingAgent,ortheRegistrar.ThisBondmaybeexchangedattheprincipalofficeoftheRegistrarforalikeaggregateprincipalamountofBondsofthesamematurityofotherauthorizeddenominations.ThisBondistransferablebytheregisteredownerhereofinpersonorbyhisattorney’dulyauthorizedinwriting,attheprincipalofficeoftheRegistrar,butonlyinthemanner,subjecttothelimitations,anduponpaymentofthechargesprovidedintheBondOrdinanceanduponsurrenderandcancellationofthisBond.ThisBondmaybetransferredupontheregistrationbooksupondeliverytotheRegistrarofthisBond,accompaniedbyawritteninstrumentorinstrumentsoftransferinformandwithguarantyofsignaturesatisfactorytotheRegistrar,dulyexecutedbytheownerofthisBondorhisattorney-in-factorlegalrepresentative,containingwritteninstructionsastothedetailsofthetransferoftheBond,alongwiththesocialsecuritynumberorfederalemployeridentificationnumberofthetransferee.IntheeventofthetransferofthisBond,theRegistrarshallenterthetransferofownershipintheregistrationbooksandshallauthenticateanddeliverinthenameofthetransfereeortransfereesanewfullyregisteredBondorBondsofauthorizeddenominationsofthesamematurityandinterestratefortheaggregateprincipalamountwhichtheregisteredownerisentitledtoreceiveattheearliestpracticabletime.TheRegistrarshallchargetheownerofthisBondforeverysuchtransferorexchangeanamountsufficienttoreimburseitforanyreasonablefee,anytaxorothergovernmentalchargerequiredtobepaidwithrespecttosuchtransferorexchange.*ttTheBondsarenottransferableorexchangeable,exceptassetforthintheBondOrdinance.****uponanypartialredemptionofthisBond,Cede&Co.initsdiscretionmayrequesttheRegistrartoauthenticateanewBondormakeanappropriatenotationonthisBondindicatingthedateandamountofprepayment,exceptinthecaseoffinalmaturity,inwhicheasethisBondmustbepresentedtotheRegistrarpriortofinalpayment.ttThisBondshallnotbevalidorbecomeobligatoryforanypurposeorbeentitledtoanysecurity,orbenefitundertheBondOrdinanceuntilthecertificateofauthenticationhereonshallhavebeensignedbytheRegistrar.#575879vi18 017NTESTIMONYWHEREOF,theBoardofTrusteesoftheTownofEstesPark,LarimerCounty,Colorado,hascausedthisBondtobesignedbythemanualorfacsimilesignatureoftheMayoroftheTown,sealedwithanimpressionorafacsimileofthesealoftheTown,attestedbythemanualorfacsimilesignatureoftheTownClerk,andcountersignedbytheTownTreasurer,allasofthe1stdayofDecember,1999.TOWNOFESTESPARK,LARIMERCOUNTY,COLORADO(FACSIMILESEAL)By:(ManualorFacsimileSignature)MayorATTESTED:COUNTERSIGNED:By:(ManualorFacsimileSignature)By:(ManualorFacsimileSignature)TownClerkTreasurer#575819vi19 00(FormofRegistrarsCertificateofAuthentication)CERTIFICATEOFAUTHENTICATIONThisBondisoneoftheBondsoftheissuedescribedinthewithin-mentionedBondOrdinance.DateofRegistrationTHEBANKOFCHERRYCREEK,N.A.andAuthentication:Denver,Colorado,asRegistrarBy:AuthorizedSignatory’(EndofFormofRegistrar’sCertificateofAuthentication)(FormofStatementofInsurance)STATEMENTOFINSURANCEFinancialSecurityAssuranceInc.(“FinancialSecurity”),NewYork,NewYork,hasdelivereditsmunicipalbondinsurancepolicywithrespecttothescheduledpaymentsdueofprincipalofandinterestonthisBondtoTheBankofCherryCreek,N.A.,inDenver,Colorado,oritssuccessor,aspayingagentfortheBonds(the“PayingAgent”).SaidPolicyisonfileandavailableforinspectionattheprincipalofficeofthePayingAgentandacopythereofmaybeobtainedfromFinancialSecurityorthePayingAgent.(EndofFormofStatementofInsurance)#575879vi20 0C**(FormofPrepaymentPanel)Thefollowinginstallmentsofprincipal(orportionthereof)ofthisBondhavebeenprepaidinaccordancewiththetermsoftheBondOrdinanceauthorizingtheissuanceofthisBond.SignatureofDateofPrincipalAuthorizedPrepaymentPrepaidRepresentativeoftheDepository(EndofFormofPrepaymentPanel)*InsertiftheBondsaredeliveredpursuanttoSection10oftheBondOrdinance.*lnsertonlyiftheBondsareinitiallydeliveredtoTheDepositoryTrustCompanypursuanttoSection4oftheBondOrdinance.i575879v121 00(FormofTransfer)ASSIGNMENTFORVALUERECEIVED,theundersignedsells,assigns,andtransfersuntoSOCIALSECURITYORFEDERALEMPLOYERIDENTIFICATIONNUMBEROFASSIGNEE(NameandAddressofAssignee)thewithinBondanddoesherebyirrevocablyconstituteandappoint__________________,attorney,totransfersaidBondonthebookskeptforregistrationthereofwithfillpowerofsubstitutioninthepremises.Dated:_____________________________________SignatureofRegisteredOwner:NOTICE:ThesignaturetothisassignmentmustcorrespondwiththenameoftheregisteredownerasitappearsuponthefaceofthewithinBondineveryparticular,withoutalterationorenlargementoranychangewhatsoever.Signatureguaranteed:(Bank,TrustCompany,orFirm)(EndofFormofTransfer)#575879vi 0aSection8.Authentication.NoBondshallbevalidorobligatoryforanypurposeorbeentitledtoanysecurityorbenefitunderthisOrdinanceunlessanduntilacertificateofauthenticationonsuchBondsubstantiallyintheformhereinabovesetforthshallhavebeendulyexecutedbytheRegistrar,andsuchexecutedéertificateoftheRegistraruponanysuchBondshallbeconclusiveevidencethatsuchBondhasbeenauthenticatedanddeliveredunderthisOrdinance.TheRegistrar’scertificateofauthenticationonanyBondshallbedeemedtohavebeenexecutedbyitifsignedbyanauthorizedofficerorsignatoryoftheRegistrar.Section9.DeliveryofBonds.UpontheadoptionofthisOrdinance,theTownshallexecuteoneBondforeachmaturityandshalldeliverthemtotheRegistrar.TheRegistrarshallauthenticatetheBondsanddeliverthemtoDTC,asdirectedbytheTown.Section10.Registration,ExchangeandTransferofBondsPersonsTreatedasOwners.SubjecttoSection4hereof,theRegistrarshallmaintainthebooksoftheTownfortheregistrationofownershipofeachBondasprovidedinthisOrdinance.Exceptasotherwiseprovidedherein,BondsmaybeexchangedattheprincipalofficeoftheRegistrarforalikeaggregateprincipalamountofBondsofthesamematurityofotherauthorizeddenominations.BondsmaybetransferredupontheregistrationbooksupondeliveryoftheBondstotheRegistrar,accompaniedbyawritteninstrumentorinstrumentsoftransferinformandwithguarantyofsignaturesatisfactorytotheRegistrar,dulyexecutedbytheOwneroftheBondstobetransferredorhisattorney-in-factorlegalrepresentative,containingwritteninstructionsastothedetailsofthetransferofsuchinstrumentorinstruments,alongwiththesocialsecuritynumberorfederalemployeridentificationnumberofsuchtransferee.NotransferofanyBondshallbeeffectiveuntilenteredontheregistrationbooks.InallcasesofthetransferofaBond,theRegistrarshallenterthetransferofownershipintheregistrationbooksandshallauthenticateanddeliverinthenameofthetransfereeortransfereesanewfullyregisteredBondorBondsofauthorizeddenominationsofthesamematurityandinterestrateoryield,fortheaggregateamountwhichOwnerisentitledtoreceiveinpaymentattheearliestpracticabletimeinaccordancewiththeprovisionsofthisOrdinance.TheRegistrarshallchargetheOwneroftheBondforeverysuchtransferorexchangeanamountsufficienttoreimburseitforanyreasonablefeesandanytaxorothergovernmentalchargerequiredtobepaidwithrespecttosuchtransferorexchange.TheTownandRegistrarshallnotberequiredtoissueortransferanyBondsduringtheperiodbeginningonanydateofselectionofBondstoberedeemedandendingattheopeningofbusinessonthedayonwhichtheapplicablenoticeofredemptionismailed.TheRegistrarshallnotberequiredtotransferanyBondsselectedorcalledforredemption,inwholeorinpart.NewBondsdelivered‘uponanytransfershallbevalidspecial,limitedobligationsoftheTown,evidencingthesameobligationastheBondssurrendered,shallbesecuredbythisOrdinance,andshallbeentitledtoallofthesecurityandbenefitshereoftothesameextentastheBondssurrendered.#575879vi23 00TheTown,thePayingAgent,andtheRegistrarmaydeemandtreattheOwnerofanyBondastheabsoluteownerthereofforallpurposes(whetherornotsuchBondshallbeoverdue),andanynoticetothecontraryshallnotbebindingupontheTown,thePayingAgent,ortheRegistrar.Section11.CancellationofBonds.WheneveranyoutstandingBondshallbedeliveredtotheRegistrarforcancellationpursuanttothisOrdinanceanduponpaymentoftheprincipalamountandinterestrepresentedthereby,orwheneveranyoutstandingBondshallbedeliveredtotheRegistrarfortransferorexchangepursuanttotheprovisionshereof,suchBondshallbecanceledbytheRegistrarandcounterpartsofacertificateofcancellationevidencingsuchcancellationshallbefurnishedbytheRegistrartotheTown.Section12.LostBonds.AnyBondthatislost,stolen,destroyed,ormutilatedmaybereplacedorpaidbytheRegistrarinaccordancewithandsubjecttothelimitationsofapplicablelaw.TheapplicantforanysuchreplacementBondshallpostsuchsecurity,paysuchcosts,andpresentsuchproofofownershipandlossasmayberequiredbyapplicablelaw,orintheabsenceofspecificrequirements,asmayberequiredbytheRegistrar.Section13.FundsandAccounts.TheproceedsoftheBonds,andtheIncome,shallbedepositedbytheTowninthefundsandaccountsdescribedinthisSection13,tobeaccountedforinthemannerandprioritysetforthherein.NeithertheUnderwriternoranysubsequentOwnerofanyBondsshallbeinanymannerresponsiblefortheapplicationordisposalbytheTownorbyanyofitsofficers,agentsandemployeesofthemoneysderivedfromthesaleoftheBondsorofanyothermoneysdesignatedinthisSection13.ThePledgedRevenuesandallmoneysandsecuritiespaidortobepaidtoorheldortobeheldinanyfundoraccounthereunder(excepttheOperationandMaintenanceAccountandtheExcessInvestmentEarningsAccount)areherebypledgedtosecurethepaymentoftheDebtServiceRequirementsoftheBonds,subjccttotheprovisionshereinrelatingtotheConstructionAccountandsubjecttotheapplicationofthePledgedRevenuesforthepaymentofDebtServiceRequirementsofParitySecurities.ThispledgeshallbevalidandbindingfromandafterthedateofthefirstdeliveryoftheBonds,andthemoneys,asreceivedbytheTownandherebypledged,shallimmediatelybesubjecttothelienofthispledgewithoutanyphysicaldeliverythereof,anyfiling,orfurtheract.ThelienofthispledgeandtheobligationtoperformthecontractualprovisionsherebymadeshallhavepriorityoveranyorallotherobligationsandliabilitiesoftheTown(exceptashereinotherwiseexpresslyprovided),andthelienofthispledgeshallbevalidandbindingasagainstallpartieshavingclaimsofanykindintort,contractorotherwiseagainsttheTown(exceptashereinotherwiseexpresslyprovided),irrespectiveofwhethersuchpartieshavenoticethereof.A.ConstructionAccount.TheproceedsoftheBonds,exceptthesums,ifany,requiredinparagraphsDandEhereoftobedepositedinthePrincipalandInterestAccountandtheDebtServiceReserveAccount,shallbedepositedintheConstructionAccountherebycreatedwithintheLightandPowerEnterpriseFundandshallbemaintained,usedandwithdrawnonlyasprovidedhereinsolelyforthepurposeofpaying,orreimbursingtheTownforpaymentsof,theCostoftheProjectandarcpledgedtherefor.AnysuchproceedsremainingintheConstructionAccountafter#575879vi24 CCcompletionoftheProject,excludinginvestmentearningswhichmayberequiredtoberebatedtothefederalgovernment,shallbedepositedinthePrincipalandInterestAccountandusedfirsttopaythecostsofanyadditionalcapita!improvementsthattheTownmaydeterminetobepartoftheProject;thentobeusedforthepurposesofthePrincipalandInterestAccountorshallbeusedtotheextentfeasibletocallandredeemBondsinadvanceofmaturity.TheTownshalluseanyproceedsoftheBondscreditedtotheConstructionAccount,withoutfurtherorder,topaytheDebtServiceRequirementsoftheBondsasthesamebecomeduewheneverandtotheextentmoneysinthePrincipalandInterestAccountandtheDebtServiceReserveAccountormoneysotherwiseavailablethereforareinsufficientforthatpurpose,unlesssuchproceedsshallbeneededtodefrayobligationsaccruedandtoaccrueunderanycontractsthenexistingandpertainingtotheProject.AnymoneyssousedshallberestoredtotheConstructionAccountfromthefirstPledgedRevenuesthereafterreceivedandnotneededtomeettherequirementsprovidedinparagraphsDandEhereofB.LirzhtandPowerEnterpriseFund.Exceptasotherwiseprovidedherein,theentireIncome,uponreceiptthereoffromtimetotimebytheTown,shallbesetasideandcreditedimmediatelytotheLightandPowerEnterpriseFund.Inaddition,theTownmayatitsoptioncredittotheLightandPowerEnterpriseFundanyothermoneysoftheTownlegallyavailableforexpenditureforthepurposesoftheLightandPowerEnterpriseFundasprovidedherein.TheLightandPowerEnterpriseFundshallbeadministeredandthemoneysondepositthereinshallbedepositedandappliedinthefollowingorderofpriority:(1)First,totheOperationandMaintenanceAccounttopayOperationandMaintenanceExpensesinthemannersetforthinparagraphChereof;(2)Second,tothePrincipalandInterestAccounttopaytheDebtServiceRequirementsoftheBonds,anyAdditionalParityBondsandanyotherParitySecuritiesthenoutstandinginthemannersetforthinparagraphDhereof;(3)Third,totheDebtServiceReserveAccount,inthemannersetforthinparagraphEhereof;(4)Fourth,tothepaymentoftheDebtServiceRequirementsofSubordinateBondsorotherSubordinateSecuritiesinaccordancewithparagraphGhereof;and(5)Fifth,tobeusedinaccordancewithparagraphsFandHhereofC.OperationandMaintenanceAccount.AsafirstchargeontheLightandPowerEnterpriseFund,thereshallbecreditedfromtimetotimetotheOperationandMaintenanceAccountherebycreatedwithintheLightandPowerEnterpriseFundmoneyssufficienttopaytheOperationandMaintenanceExpensesoftheLightandPowerFacilitiesastheybecomedueandpayable,andthereupontheOperationandMaintenanceExpensesshallbepromptlypaid.11575879vi25 00D.PrincipalandInterestAccount.TheTownshalldepositinthePrincipalandInterestAccountherebycreatedwithintheLightandPowerEnterpriseFund,forthwithuponreceiptoftheproceedsoftheBonds,interestaccruedthereonfromtheirdatetothedateofdeliverythereoftotheUnderwriter,toapplytothepaymentofinterestfirstdueontheBonds.SubjecttothepaymentsrequiredbyparagraphChereof;forsolongastheBondsareoutstanding,theTownshalldepositinthePrincipalandInterestAccountfromthePledgedRevenuesonorbeforethelastdayofeachmonthbeginningwiththemonthofissuanceoftheBonds,theamountofinterestaccruingontheBondsduringsaidmonth(withacreditfortheamountofanyaccruedinterestdepositedinthePrincipalandInterestAccountandnottheretoforecredited)andonorbeforethelastdayofeachmonthafterthefirstInterestPaymentDateofiheBonds,thefollowingamounts:(1)InterestPayments.One-sixth(/6)oftheaggregateamountofthenextinstallmentofinterestdueinthethen-currentBondYearplusanyotheramountsdueforinterestontheBonds,anyAdditionalParityBondsandanyotherParitySecuritiesthenOutstanding.(2)PrincipalPayments.One-twelfth(1/12)oftheaggregateamountofthenextinstallmentofprincipaldueinthethen-currentBondYearplusanyotheramountsdueforprincipaloftheBonds,anyAdditionalParityBondsandanyotherParitySecuritiesthenOutstanding.Suchinterestandprincipalshallbepromptlypaidwhendue.ThemoneyscreditedtothePrincipalandInterestAccount,excludinginvestmentearningswhichmayberequiredtoberebatedtothefederalgovernment,shallbeusedtopaytheDebtServiceRequirementsoftheBonds,anyAdditionalParityBondsandanyotherParitySecuritiesthenOutstanding,assuchDebtServiceRequirementsbecomedue,exceptasotherwiseprovidedinthisOrdinance.ThePrincipalandlntercstAccountshallalsobemaintainedasasinkingfindforthemandatoryredemptionofanyBondswhicharesubjecttomandaton’sinkinghindredemption.AnymandatorysinkingfundredemptionshallbetreatedasaninstallmentofprincipalforpurposesofthisparagraphD.NothinghereinshallbeconstruedtopreventtheTownfromcreatingseparateprincipalandinterestaccountsfortheBondsandanyAdditionalParityBondsandaccountingseparatelyforanydepositsmadetheretoonaccountoftheBondsandanyAdditionalParityBonds,ifsuchactionisdeemedbytheTowntobenecessaryordesirableinordertocomplywithanystatuteorregulationgoverningtheexemptionfromfederalincometaxesofinterestontheBondsoranysuchAdditionalParityBonds,providedthatanysuchseparateaccountsshallhaveclaimstothePledgedRevenuesequaltoandonaparitywiththoseoftheothersuchaccounts.NothinghereinshallbeconstruedtopreventtheTownfromcreatingsubfundsorsubaccountsforthepurposeofrecordingthepaymentsandaccumulationsmadehereunderinamannerconsistentwiththeaccountingprincipleswhichmaybeemployedbytheTownfromtimetotime.11575879vi26 00E.DebtServiceReserveAccount.FromproceedsoftheBonds,theTownshalldepositandmaintainintheDebtServiceReserveAccountherebycreatedwithintheLightandPowerEnterpriseFundasumequaltothelesserof10%oftheproceedsoftheBondsortheMaximumAnnualDebtServiceRequirementsoftheBondscomingdueinanyBondYear,butnottoexceed$315,000(the“ReserveRequirement”).SubjecttothepaymentsrequiredbyparagraphsCandDhereof,fromthePledgedRevenuesthereshallbecreditedashereinafterprovidedtotheDebtServiceReserveAccountmoneyssufficienttomaintaintheDebtServiceReserveAccountattheReserveRequirement.IntheeventthattheamountoftheDebtServiceReserveAccountfallsbelowtheReserveRequirement,theTownshallcreditimmediatelytotheDebtServiceReserveAccount,fromthePledgedRevenues,thatsumofmoneyneededtomaintaintheReserveRequirement.ThemoneysrequiredtobedepositedintheDebtServiceReserveAccount,excludinginvestmentearningswhichmayberequiredtoberebatedtothefederalgovernmentandanyamountsgreaterthantheRequiredReserve,shallbesetasideandmaintainedasacontinuingreservetobeused,exceptashereinafterprovidedinthisparagraphEandSection50hereof,onlytopreventdeficienciesinpaymentoftheDebtServiceRequirementsoftheBonds,anyAdditionalParityBondsandanyotherParitySecuritiesthenoutstandingresultingfromfailuretodepositintothePrincipalandInterestAccountsufficientfundstopaysuchDebtServiceRequirementsasthesamebecomedue.NothinginthisOrdinanceshallbeconstruedaslimitingtherightoftheTowntosubstituteforthecashdepositrequiredtpbemaintainedhereunderaletterofcredit,suretybond,insurancepolicy,agreementguaranteeingpayment,orotherundertakingbyafinancialinstitutiontoensurethatcashintheamountotherwiserequiredtobemaintainedhereunderwillbeavailabletotheTownasneeded,providedthatanysuchsubstitutionshallnotcausethethen-currentratingorratingsoftheBondstobeadverselyaffected.Ifsuchletterofcredit,suretybond,insurancepolicy,agreementguaranteeingpayment,orotherundertakingistobeprovidedbyanyentityotherthantheInsurer,theTownshallobtainthewrittenconsentoftheInsurertoeffectsuchsubstitution.Initially,theInsurerisprovidingamunicipalbonddebtservicereserveinsurancepolicy(the“ReservePolicy”)asasubstituteforthecashdepositrequiredtobemaintainedhereunder.ThefollowingtermsandconditionsapplywithrespecttotheReservePolicy:(1)TheTownshallrepayanydrawsundertheReservePolicyandpayallrelatedreasonableexpensesincurredbytheInsurer.InterestshallaccrueandbepayableonsuchdrawsandexpensesfromthedateofpaymentbytheInsurerattheLatePaymentRate.“LatePaymentRate”meansthelesserof(a)thegreaterof(i)theperannumrateofinterest,publiclyannouncedfromtimetotimebyTheChaseManhattanBankatitsprincipalofficeintheCityofnewYork,asitsprimeorbaselendingrate(“PrimeRate”)(anychangeinsuchPrimateRatetobeeffectiveonthedatesuchchangeisannouncedbyTheChaseManhattanBank)plus3%,and(ii)thethenapplicablehighestrateofinterestontheBondsand(b)themaximumratepermissibleunderapplicableusuryorsimilarlawslimitinginterestrates.TheLatePaymentRateshallbecomputedonthebasisoftheactualnumberofdayselapsedoverayearof360days.IntheeventTheChaseManhattanBankceasestoannounceitsPrimeRatepublicly,PrimeRateshallbethepubliclyannouncedprimeorbaselendingrateofsuchnationalbankastheInsurershallspecify.I575879vI27 0CRepaymentofdrawsandpaymentofexpensesandaccruedinterestthereonattheLatePaymentRate(collectively,PolicyCosts)shallcommenceinthefirstmonthfollowingeachdraw,andeachsuchmonthlypaymentshallbeinanamountatleastequalto1/12oftheaggregateofPolicyCostsrelatedtosuchdraw.AmountsinrespectofPolicyCostspaidtotheInsurershallbecreditedfirsttointerestdue,thentotheexpensesdueandthentoprincipaldue.AsandtotheextentthatpaymentsaremadetotheInsureronaccountofprincipaldue,thecoverageundertheReservePolicywillbeincreasedbyalikeamount,subjecttothetermsoftheReservePolicy.AllcashandinvestmentsintheDebtServiceReserveFundshallbetransferredtothePrincipalandInterestAccountforpaymentofdebtserviceonBondsbeforeanydrawingmaybemadeontheReservePolicyoranyothercreditfacilitycreditedtotheDebtServiceReserveFundinlieuofcash(CreditFacility”).PaymentofanyPolicyCostsshallbemadepriortoreplenishmentofanysuchcashamounts.DrawsonallCreditFacilities(includingtheReservePolicy)onwhichthereisavailablecoverageshallbemadeonapro-ratabasis(calculatedbyreferencetothecoveragethenavailablethereunder)_rapplyingallavailablecashandinvestmentsintheDebtServiceReserveFund.PaymentofPolicyCostsandreimbursementofamountswithrespecttootherCreditFacilitiesshallbemadeonapro-ratabasispriortoreplenishmentofanycashdrawnfromtheDebtServiceReserveFund.(2)IftheTownshallfailtopayanyPolicyCostsinaccordancewiththerequirementsofthisSection13(E),theInsurershallbeentitledtoexerciseanyandalllegalandequitableremediesavailabletoit,includingthoseprovidedunderthisOrdinanceotherthanremedieswhichwouldadverselyaffectownersoftheBonds.(3)ThisOrdinanceshallnotbedischargeduntilallPolicyCostsowingtotheInsurershallhavebeenpaidinfull.TheTown’sobligationtopaysuchamountsshallexpresslysurvivepaymentinfulloftheBonds.(4)InordertosecuretheTown’spaymentobligationswithrespecttothePolicyCoststhereisherebygrantedinfavoroftheInsurerasecurityinterest(subordinateonlytothatoftheownersoftheBonds)inthePledgedRevenues.(5)TheRegistrarshallascertainthenecessityforaclaimupontheReservePolicyandshallprovidenoticetotheInsurerinaccordancewiththetermsoftheReservePolicyatleastfivebusinessdayspriortoeachdateuponwhichinterestorprincipalisdueontheBonds.F.TerminationofDeposits.NopaymentneedbemadeintothePrincipalandInterestAccountortheDebtServiceReserveAccountiftheamountinthePrincipalandInterestAccountandtheamountintheDebtServiceReserveAccounttotalasumatleastequaltotheentireamountoftheOutstandingBonds,anyOutstandingAdditionalParityBondsandanyother#575879v128 CCOutstandingParitySecurities,astoallDebtServiceRequirements,totheirrespectivematuritiesortoanyRedemptionDateorRedemptionDatesasofwhichtheTownshallhaveexercisedorshallhaveobligateditselftoexerciseitsoptiontoredeem,priortotheirrespectivematuritydates,anyBonds,anyAdditionalParityBondsandanyotherParitySecurities,thenoutstandingandthereaftermaturing(providedthat,solelyforthepurposeofthisparagraphF,thereshallbedeemedtobeacredittotheDebtServiceReserveAccountofmoneys,FederalSecuritiesandbankdeposits,oranycombinationthereof,accountedforinanyotherfundoraccountoftheTownandrestrictedsolelyforthepurposeofpayingtheDebtServiceRequirementsoftheBonds,anyAdditionalParityBondsoranyotherParitySecurity),inwhichcasemoneysinthePrincipalandInterestAccountandtheDebtServiceReserveAccountinanamount,exceptforanyknowninterestorothergaintoaccruefromanyinvestmentordepositofmoneyspursuanttoSection15hereoffromthetimeofanysuchinvestmentordeposittothetimeorrespectivetimestheproceedsofanysuchinvestmentordepositshallbeneededforsuchpayment,atleastequaltosuchDebtServiceRequirements,shallbeusedtogetherwithanysuchgainfromsuchinvestmentsanddepositssolelytopaysuchDebtServiceRequirementsasthesamebecomedue.AnymoneysinexcessthereofinthePrincipalandInterestAccountandtheDebtServiceReserveAccountandanyothermoneysderivedfromtheIncomeorotherwisepertainingtotheLightandPowerFacilitiesmaybeusedinanylawfulmannerdeterminedbytheTown.0.PaymentofSubordinateSecurities.AftertherehasbeendepositedtothePrincipalandInterestAccountanamountsufficienttopayalltheDebtServiceRequirementsdueduringthecurrentBondYearonallBonds,AdditionalParityBondsandotherParitySecuritiesthenOutstandingandafterthereplenishmentoftheDebtServiceReserveAccounttobemadeinthecurrentBondYearhavebeenmade,anymoneysremainingintheLightandPowerEnterpriseFundforsuchBondYearmaybeusedbytheTownforthepaymentofDebtServiceRequirementsofSubordinateSecuritiespayablefromthePledgedRevenuesandauthorizedtobeissuedinaccordancewiththisordinanceincludingreasonablereservesforsuchSubordinateSecurities;butthelienofsuchSubordinateSecuritiesonthePledgedRevenuesandthepledgethereofforthepaymentofsuchSubordinateSecuritiesshallbesubordinatetothelienandpledgeoftheBonds,anyAdditionalParityBondsandanyotherParitySecuritiesashereinprovided.1-I.UseofRemainingRevenues.AfterthepaymentsrequiredtobemadebyparagraphsAthrough0hereofaremade,attheendofanyBondYear,orwheneverinanyBondYearthereshallhavebeencreditedtothePrincipalandIntercstAccountandtheDebtServiceReserveAccountallamountsrequiredtobedepositedinthosespecialfundsduringsaidBondYear,ashereinprovided,anyremainingmoneyscreditedtotheLightandPowerEnterpriseFundmaybeusedfortheAcquisitionofImprovementsfortheLightandPowerFacilitiesorforanyoneoranycombinationofotherlawfulpurposesastheTownmayfromtimetotimedetermine.I.BudgetandAppropriationofSums.ThesumsprovidedtomakethepaymentsspecifiedinthisSection13areherebyappropriatedforsaidpurposes,andsaidamountsforeachyearshallbeincludedintheannualbudgetandtheappropriationordinanceormeasurestobeadoptedorpassedbytheBoardineachyearrespectivelywhileanyoftheBonds,eitherastoprincipalorinterest,areoutstandingandunpaid.Noprovisionsofanyconstitution,charter,statute,ordinance,#575M79vI29 00thisOrdinance,orotherorderormeasureenactedaftertheissuanceoftheBondsshallinanymannerbeconstruedaslimitingorimpairingtheobligationoftheTowntokeepandperformthecovenantscontainedinthisordinancesolongasanyoftheBondsremainOutstandingandunpaid.NothinghereinshallprohibittheBoardfromappropriatingotherfundsoftheTownlegallyavailableforthispurposetotheLightandPowerEnterpriseFundforthepurposesthereofJ.ExcessInvestmentEarnintzsAccount.TheFinanceOfficershalltransferintoandpayfromtheExcessInvestmentEarningsAccountherebycreatedwithintheLightandPowerEnterpriseFundtheamountofrequiredarbitragerebate,ifany,duetothefederalgovernmentunderSections103and148(0(2)oftheInternalRevenueCodeof1986,asamended,andregulationspromulgatedthereunder.TheFinanceOfficershalldeterminesuchamountsinthemannerrequiredbysaidsectionsandrelatedregulationsandSection43hereof.TransferoftherequiredarbitragerebateamountsshallbemadefromtheConstructionAccount,thePrincipalandInterestAccountandtheDebtServiceReserveAccdunt,provided,however,thatrequiredarbitragerebatepaymentsshallbemadetothefederalgovernmentfromlegallyavailablefundsregardlessofwhetherthereareanyremainingproceedsorotherfundsattributabletotheBondsthatareavailableforthepurpose.AllamountsintheExcessInvestmentEarningsAccount,includingincomeearnedfrominvestmentthereof,shallbeheldbytheFinanceOfficerfreeandclearofanyliencreatedbythisOrdinance,andtheFinanceOfficershallremitthesametothefederalgovernmentfromtimetotimeasprovidedinSection43(B)hereof.Section14.PlacesandTimesofDeposits.EachofthespecialfundsoraccountscreatedorreferredtoinSection13hereofshallbemaintainedasabookaccountoftheTownandallmoneysaccountedforthereinshallatalltimesbeeitherdepositedinaCommercialBankorinvestedinPermittedInvestments.Forpurposesofsuchdepositsorinvestmentsofmoneys,nothinghereinpreventsthecomminglingofmoneysaccountedforinanytwoormoresuchfundsoraccountspertainingtotheIncome.SuchfundsoraccountsshallbecontinuouslysecuredtothefullestextentrequiredorpermittedbythelawsoftheStateforthesecuringofpublicfundsandshallbeirrevocableandnotwithdrawablebyanyoneforanypurposeotherthantherespectivedesignatedpurposesofsuchfundsoraccounts.Eachperiodicpaymentshallbecreditedtotheproperfundoraccountnotlaterthanthedatethereforhereindesignated,exceptthatwhenanysuchdateshallbeaSaturday,aSundayoralejalholiday,thensuchpaymentshallbemadeonorbeforethenextsucceedingbusinessday.Section15.InvestmentofFunds.AnymoneysinanyfundoraccountdescribedinArticleThreehereofmaybeinvested,reinvestedordepositedonlyinPermittedInvestments.Securitiesorobligationssopurchasedasaninvestmentofmoneysinanysuchfundoraccountshallbedeemedatalltimestobeapartoftheapplicablefundoraccount;providedthat(withtheexceptionoftheDebtServiceReserveAccountandtheExcessInvestmentEarningsAccount)theinterestaccruingonsuchinvestmentsandanyprofitrealizedtherefromshallbecreditedtotheLightandPowerEnterpriseFund,andanylossresultingfromsuchinvestmentsshallbechargedtotheparticularfundoraccountinquestion.InterestandprofitrealizedfrominvestmentsintheDebtServiceReserveAccountshallbecreditedtotheDebtServiceReserveAccount,providedthat,solongastheamount11575879vi30 00intheDebtServiceReserveAccountequalstheRequiredReserve,suchinterestandprofitmaybetransferredtothePrincipalandInterestAccountanddistributedinthesamemannerasothermoneysinthePrincipalandInterestAccount.AnylossresultingfromsuchinvestmentsintheDebtServiceReserveAccountshallbechargedtotheDebtServiceReserveAccount.TheTownshallpresentforredemptionorsaleontheprevailingmarketanysecuritiesorobligationssopurchasedasaninvestmentofmoneysinagivenfundoraccountwheneveritshallbenecessarytodosoinordertoprovidemoneystomeetanyrequiredpaymentortransferfromsuchfundoraccount.TheTownshallnotinvestanymoneysaccountedforhereunderifanysuchinvestmentwouldcontravenethecovenantconcerningarbitrageinSection43(A)hereofSection16.NoLiabilityforLossesIncurredinPerformingTermsofOrdinance.NeithertheTownnoranyofficeroftheTownshallbeliableorresponsibleforanylossresultingfromanyinvestmentorreinvestmentmadeinaccordancewiththisOrdinance.Section17.CharacterofFunds.ThemoneysinanyfundoraccounthereindescribedshallconsistoflawfulmoneyoftheUnitedStatesofAmericaorinvestmentspermittedbySection15hereoforbothsuchmoneyandsuchinvestments.MoneysdepositedinademandortimedepositaccountinorevidencedbyacertificateofdepositofaCommercialBankpursuanttoSections14and15hereof,appropriatelysecuredaccordingtothelawsoftheState,shallbedeemedlawfiulmoneyoftheUnitedStatesofAmerica.Section18.FirstLienonPledaedRevenues:EqualityofBonds.ExceptasexpresslyprovidedinthisOrdinancewithrespecttoAdditionalParityBonds,otherParitySecuritiesandSubordinateSecurities,thePledgedRevenuesshallbeandherebyareirrevocablypledgedandsetasidetopaytheDebtServiceRequirementsoftheBonds.TheBondsconstituteanirrevocableandfirstlien(butnotnecessarilyanexclusivefirstlien)uponthePledgedRevenues.TheBonds,anyAdditionalParityBondsandanyotherParitySecuritieshereafterauthorizedtobeissuedandfromtimetotimeOutstandingareequitablyandratablysecuredbyalienonthePledgedRevenuesandshallnotbeentitledtoanypriorityoneovertheotherintheapplicationofthePledgedRevenuesregardlessofthetimeortimesoftheissuancethereof,itbeingtheintentionoftheBoardthatthereshallbenopriorityamongtheBonds,anyAdditionalParityBondsandanyotherParitySecurities,regardlessofthefactthattheymaybeactuallyissuedanddeliveredatdifferenttimes.Section19.IssuanceofAdditionalParityBonds.Nothingherein,exceptthelimitationsslatedinSection23hereof,preventstheissuancebytheTownofAdditionalParityBondspayablefromthePledgedRevenuesandconstitutingalienonthePledgedRevenuesonaparitywith,butnotpriororsuperiorto,thelienthereonoftheBonds;butbeforeanysuchAdditionalParityBondsareauthorizedoractuallyissuedtheTownshallsatisfythefollowingconditions:A.AbsenceofDefault.AtthetimeoftheadoptionofthesupplementalOrdinanceorotherinstrumentauthorizingtheissuanceoftheAdditionalParityBondsasprovided#515879vi31 00inSection23hereof,theTownshallnotbeindefaultinmakinganypaymentsrequiredbySection13hereof.B.HistoricRevenuesTests.(1)ExceptashereinafterprovidedinthecaseofAdditionalParityBondsissuedforthepurposeofrefundinglessthanalloftheBondsandotherParitySecuritiesthenoutstanding,thePledgedRevenuesforthelastcompleteFiscalYearpriortotheissuanceoftheproposedAdditionalParityBonds,ascertifiedbytheFinanceOfficer,musthavebeenequaltoatleast150%oftheCombinedMaximumAnnualDebtSen’iceRequirementsoftheBondsthenOutstanding,everyotherissueofOutstandingAdditionalParityBondsorotherParitySecurities,andtheAdditionalParityBondsproposedtobeissuedplus100%ofanyPolicyCosts.(2)Ifanyadjustmentinrates,fees,tollsorchargesismadebytheTownduringsuchFiscalYear,theFinanceOfficershalladjustthecalculationofthePledgedRevenuestoreflecttheamountthereofthatwouldhavebeenreceivedifsuchadjustmenthadbeenineffectthroughoutsuchFisca’Year.(3)ForpurposesofthisparagraphB,whencomputingtheMaximumAnnualDebtServiceRequirementsforanyissueofsecuritiesbearinginterestatavariable,adjustable,convertibleorothersimilarratewhichisnotfixedfortheentiretermthereof,itshallbeassumedthatanysuchsecuritiesOutstandingatthetimeofthecomputationwillbearinterestduringanyperiod,iftheinterestrateforsuchperiodsshallnothavebeendetermined,atafixedrateequaltothehigherof6%perannumorthehighestinterestrateborneduringtheprecedingtwenty-four(24)monthsbyoutstandingsecuritiesoftheTownbearinginterestatavariable,adjustable,convertibleorothersimilarrateor,ifnosuchsecuritiesoftheTownareoutstandingatthetimeofthecomputation,byanysimilarsecuritiesforwhichtheinterestrateisdeterminedbyreferencetoanindexcomparabletothattobeutilizedinconnectionwiththesecuritiesproposedtobeissued,oriftheinterestrateforsuchperiodhasbeendeterminedandisnotsubjecttovariation,adjustmentorconversionpriortotheexpirationofsuchperiod,attheratesodetermined.Itshallfurtherbeassumedthatanysuchsecuritieswhichmaybetenderedpriortomaturityforpurchaseattheoptionoftheowner’thereofwillmatureontheirstatedmaturityormandatoryredemptiondates.Further,theTownshallobtainthewrittenconsentoftheInsurerbeforeissuingAdditionalParityBondsbearinginterestatavariable,adjustable,convertibleorothersimilarratewhichisnotfixedfortheentiretermthereof.(4)InthecaseofAdditionalParityBondsissuedforthepurposeofrefundinglessthanalloftheBondsandotherParitySecuritiesthenOutstanding,compliancewiththisparagraphBshallnotberequiredsolongastheDebtSen’iceRequirementspayableastoallBondsandotherParitySecuritiesOutstandingaftertheissuanceofsuchAdditionalParityBondsoneachInterestPaymentDatedonotexceedtheDebtServiceRequirementspayableonallBondsandotherParitySecuritiesOutstandingpriortotheissuanceofsuchAdditionalParityBondsonsuchInterestPaymentDate.#575879v132 CCC.AdequateReserves.TheproceedingsunderwhichanysuchAdditionalParityBondsareissuedmustprovidqforthedepositofmoneystotheDebtServiceReserveAccountonsubstantiallythesametermsasprovidedinSection13(E)hereofandcontainacovenantbytheTowntomaintainintheDebtServiceReserveAccountanadditionalamountequaltothelesserof10%oftheproceedsoftheAdditionalParityBondsorthemaximumDebtServiceRequirementsofsuchAdditionalParityBondscomingdueinanyBondYear.Alternatively,ifsuchactionisdeemedbytheTowntobenecessary’ordesirableinordertocomplywithanystatuteorregulationgoverningtheexemptionfromfederalincometaxesofinterestonanysuchAdditionalParityBonds,theproceedingsunderwhichanysuchAdditionalParityBondsareissuedmayprovideforthedepositofmoneystoareserveaccount(otherthantheDebtServiceReserveAccount)establishedandmaintainedsolelyforsuchAdditionalParityBondsonsubstantiallythesameternmasprovidedinSection13(E)hereofandcontainacovenantbytheTowntomaintainsuchreservefundoraccountinanamountequaltothelesserof10%oftheproceedsoftheAdditionalParityBondsorthemaximumDebtServiceRequirementsofsuchAdditionalParityBondscomingdueinanyBondYear,exceptasmaybenecessarytocomplywithsuchstatuteorregulation.AnysuchreserveaccountshallhaveaclaimtothePledgedRevenuesequaltoandonaparitywiththatoftheDebtServiceReserveAccount.Section20.EffectofCertificationofRevenues.V/herecertificationsofrevenuesarerequiredbythisOrdinance,thespecifiedandrequiredwTittencertificationsoftheFinanceOfficertotheeffectthatrevenuesarespfficienttopaytherequiredamountsshallbeconclusivelypresumedtobeaccurateindeterminingtherightoftheTowntoauthorizeissue,sellanddeliverAdditionalParityBondsorotherParitySecurities.Section21.SubordinateSecuritiesPermitted.Nothingherein,exceptthelimitationsstatedinSection23hereof,preventstheTownfromissuingSubordinateSecuritiesforanylawfulpurpose.Section22.SuperiorSecuritiesProhibited.NothinghereinpermitstheTowntoissueSuperiorBondsorSuperiorSecurities.Section23.SupplementalOrdinances.AdditionalParityBondsorSubordinateSecuritiesshallbeissuedonlyafterauthorizationthereofbyOrdinance,supplementalOrdinanceorlegislativemeasureadoptedbytheBoard,insubstantiallythesameformasthisOrdinance,statingthepurposeorpurposesoftheissuanceofsuchadditionalSecurities,directingtheapplicationoftheproceedsthereoftosuchpurposeorpurposes,directingtheexecutionthereof,andfixinganddeterminingthedate,seriesdesignation,principalamount,maturityormaturities,maximumrateorratesofinterestandpriorredemptionprivilegesoftheTownwithrespectthereto,andprovidingforpaymentstoandfromtheLightandPowerEnterpriseFundinaccordancewiththisOrdinance.AlladditionalSecuritiesshallbearsuchdate,shallbepayableastoprincipalandinterestonthesamesemiannualdatesastheBondsandshallbe.subjecttoredemptionpriortomaturityonsuchtermsandconditionsasmaybeprovided,andshallbearinterestatsuchrateorratesasmaybefixedbyOrdinanceoftheBoard.NothinghereinshallbeconstruedtoprohibittheissuanceofadditionalSecuritiespayablefromthePledgedRevenues,theprincipalofwhichispayablemorefrequentlythanannuallyortheinterestonwhichispayablemorefrequentlythansemiannually.#575879v133 00Section24.RateMaintenanceCovenant.TheTownshallprescribe,revise,andcollectrates,feesandchargesforuseoftheLightandPowerFacilitieswhichshallproduceIncomesufficient,togetherwithanyothermoneyslegallyavailablethereforandcreditedtotheLightandPowerEnterpriseFund,tomakethepaymentsandaccumulationsrequiredbythisOrdinance;andwhichshallproduceIncomesufficient,afterpaymentofOperationandMaintenanceExpenses,topayanamountatleastequalto125%ofthecombinedannualdebtservicerequirementsfortheOutstandingBondsandeveryotherissueofOutstandingAdditionalParityBondsorotherParitySecurities.SuchIncomeremainingafterpaymentofOperationandMaintenanceExpensesandtheDebtServiceRequirementsoftheBondsandOutstandingAdditionalParityBondsandotherParitySecuritiesalsoshallbesufficienttopay100%ofthecombinedannualdebtservicerequirementsofallOutstandingSubordinateSecurities,plusanyamountsrequiredtomeetthenexistingdeficienciespertainingtoanyfundoraccountrelatingtothePledgedRevenuesoranysecuritiespayabletherefrom,plusanyPolicyCosts.TheBoardwillincreaserates,feesandchargesinsuchmannerandtosuchextentastoreasonablyinsurethepaymentsandaccumulationsrequiredbytheprovisionsofthisOrdinance.Section25.CollectionofCharges.TheTownshallcauseallrates,feesandchargestobebilledpromptlyandcollectedassoonasreasonable,andshallprescribeandenforcerulesandregulationsorimposecontractualobligationsforthepaymentthereof,totheendthatthePledgedRevenuesshallbeadequatetomeettherequirementsofthisOrdinanceandanyotherOrdinanceorinstrumentsupplementalthereto.Therates,feesandchargesshallbecollectedinanylawfulmanner.Section26.CompetentManagement.TheTownshallemployexperiencedandcompetentmanagementpersonnelforcachcomponentoftheLightandPowerFacilities.IftheTownshallfailtopaytheDebtServiceRequirementsoftheBondspromptlyasthesamebecomedue,oriftheTownshallfailtokecpanyofthecovenantshereincontained,andifsuchdefaultshallcontinueforaperiodofsixty(60)days,orifinanyFiscalYearthePledgedRevenues,togetherwithanyothermoneyslegallyavailablethereforandcreditedtotheLightandPowerEnterpriseFund,shouldfailtoequalatleasttheamountoftheDebtServiceRequirementsoftheBondsandotherobligationspayablefromthePledgedRevenuesdueintheComparableBondYear,theTownshallretainafirmofcompetentmanagementPersonsskilledandknowledgeableintheoperationoflightandpowerfacilitiesandservicestoassistinthemanagementoftheLightandPowerFacilitiessolongassuchdefaultordeficiencycontinues.Section27.PerformanceofDuties.TheTown,actingbyandthroughitsofficers,orotherwise,shallfaithfullyandpunctuallyperform,orcausetobeperformed,alldutieswithrespecttotheIncomeandtheLightandPowerFacilitiesrequiredbytheconstitutionandlawsoftheStateandtheordinancesandcontractsoftheTown,includingwithoutlimitationthepropersegregationoftheproceedsoftheBonds,andtheIncomcandtheirapplicationfromtimetotimetotherespectivefundsprovidedtherefor.Section28.CostsofBondIssueandofPerformance.Exceptasotherwisespecificallyprovidedherein,allcostsandexpensesincurredinconnectionwiththeissuanceoftheBonds,paymentoftheDebtServiceRequirements,ortheperformanceoforcompliancewithanycovenant#575879v134 00oragreementcontainedinthisOrdinanceshallbepaidexclusively(butonlyfromtheappropriatespecialfundoraccountinthmannerauthorizedherein)fromtheproceedsoftheBonds,thePledgedRevenues,orotherlegallyavailablemoneys,andinnoeventshallanyofsuchcostsorexpensesberequiredtobepaidoutoforchargedtothegeneralfundoftheTown.Section29.ContractualObligations.TheTownwillperformallcontractualobligationsundertakenbyitunderitscontractwiththeUnderwriterandanyotheragreementsrelatingtotheBonds,theIncomeortheLightandPowerFacilities.Section30.FurtherAssurances.AtanyandalltimestheTownshall,sofarasitmaybeauthorizedbylaw,pass,make,doexecute,acknowledge,deliver,andfileorrecordallandeverysuchfurtherinstruments,acts,deeds,conveyances,assignments,transfers,otherdocuments,andassurancesasmaybenecessaryordesirableforthebetterassuring,conveying,granting,assigningandconfirmingallandsingulartherights,thePledgedRevenuesandotherfundsherebypledgedorassigned,orintendedsotobe,orwhichtheTownmayhereafterbecomeboundtopledgeorassign,orasmaybereasonableandrequiredtocarryoutthepurposesofthisOrdinance.TheTown,actingbyandthroughitsEnterpriseanditsofficers,orotherwise,shallatalltimes,totheextentpermittedbylaw,defend,preserveandprotectthepledgeofthePledgedRevenuesandotherfundsandaccountspledgedhereunderandalltherightsofeveryownerofanyoftheBondsagainstallclaimsanddemandsofallPersons.Section31.ConditionsPrecedent.UponthedateofissuanceofanyoftheBonds,allconditions,actsandthingsrequiredbytheConstitutionorlawsoftheUnitedStatesofAmerica,theconstitutionorlawsoftheStateandthisOrdinancetoexist,tohavehappened.andtohavebeenperformedprecedenttoorintheissuanceoftheBondsshallexist,havehappenedandhavebeenperformed,andtheBonds,togetherwithallotherobligationsoftheTown,shallnotcontraveneanydebtorotherlimitationprescribedbytheConstitutionorlawsoftheUnitedStatesofAmericaortheconstitutionorlawsoftheState.Section32.EfficientOperationandMaintenance.TheTownshallatalltimesoperatetheLightandPowerFacilitiesproperlyandinasoundandeconomicalmanner.TheTowshallmaintain,preserveandkeeptheLightandPowerFacilitiesproperlyorcausethesamesotobemaintained,preserved,andkept,withtheappurtenancesandeverypartandparcelthereofingoodrepair,workingorderandcondition,andshallfromtimetotimemakeorcausetobemadeallnecessaryandproperrepairs,replacementsandrenewalssothatatalltimesthemaintenanceoftheLightandPowerFacilitiesmaybeproperlyandadvantageouslyconducted.Allsalaries,fees,wagesandothercompensationpaidbytheTowninconnectionwiththerepair,maintenanceandoperationoftheLightandPowerFacilitiesshallbefairandreasonable.Section33.RecordsandAccounts.TheTownwillkeepproperbooksofrecordandaccounts,separateandapartfromallotherrecordsandaccounts,showingcompleteandcorrectentriesofalltransactionsrelatingtothefundsreferredtoherein.1575879vi35 00Section34.Rules,RetulationsandotherDetails.TheTown,actingbyandthroughitsofficers,shallestablishandenforcereasonablerulesandregulationsgoverningtheconstruction,operation,care,repair,maintenance,management,control,anduseoftheLightandPowerFacilities.TheTownshallobserveandperformallofthetermsandconditionscontainedinthisOrdinanceandshallcomplywithallvalidacts,rules,regulations,ordersanddirectivesofanylegislative,executive,administrativeorjudicialbodyapplicabletotheLightandPowerFacilitiesortheTown.Section35.PaymentofGovernmentalCharges.TheTownshallpayorcausetobepaidalltaxesandassessmentsorothermunicipalorgovernmentalcharges,ifany,lawfullyleviedorassesseduponorinrespectoftheLightandPowerFacilities,oruponanypartthereof,oruponanyportionoftheIncome,whenthesame.shallbecomedue,andshalldulyobserveandcomplywithallvalidrequirementsofanymunicipalorgovernmentalauthorityrelativetotheLightandPowerFacilities,oranypartthereof,exceptforanyperiodduringwhichthesamearebeingcontestedingoodfaithbyproperlegalproceedings.TheTownshallnotcreateorsuffertobecreatedanylienorchargeupontheLightandPowerFacilities,oranypartthereof,orupontheIncome,exceptthepledgeandliencreatedbythisOrdinanceforthepaymentoftheDebtServiceRequirementsdueinconnectionwiththeBonds,andexceptashereinotherwisepermitted.TheTownshallpayorcausetobedischargedorshallmakeadequateprovisiontosatisfyandtodischarge,withinninety(90)daysafterthesameshallbecomepayable,alllawftilclaimsanddemandsforlabor,materials,suppliesorotherobjectswhich,ifunpaid,mightbylawbecomealienupontheLightandPowerFacilities,oranypartthereo1ortheIncome,butnothinghereinrequirestheTowntopayortocausetobedischargedortomakeprovisionforanysuchtax,assessment,lienorcharge,solongasthevaliditythereofiscontestedingoodfaithandbyappropriatelegalproceedings.Section36.ProtectionofSecurity.TheTown,itsofficers,agentsandemployees,shallnottakeanyactioninsuchmaimerortosuchextentasmightprejudicethesecurityforthepaymentoftheDebtServiceRequirementsoftheBondsandanyothersecuritiespayablefromthePledgedRevenuesaccordingtothetermsthereof.NocontractshallbeenteredintonoranyotheractiontakenbywhichtherightsofanyownerofanyBondsorothersecuritiespayablefromPledgedRevenuesmightbeprejudiciallyandmateriallyimpairedordiminished.Section37.AccumulationoflnterestClaims.Inordertopreventanyaccumulationofclaimsforinterestaftermaturity,theTownshallnotdirectlyorindirectlyextendorassenttotheextensionofthetimeforthepaymentofanyclaimforinterestonanyoftheBondsoranyotherSecuritiespayablefromthePledgedRevenues;andtheTownshallnotdirectlyorindirectlybeapartytoorapproveanyarrangementsforanysuchextensionorforthepurposeofkeepingaliveanyofsuchclaimsforinterest.Ifthetimeforthepaymentofanysuchinstallmentofinterestisextendedincontraventionoftheforegoingprovisions,suchinstallmentorinstallmentsofinterestaftersuchextensionorarrangementshallnotbeentitledincaseofdefaulthereundertothebenefitorthesecurityofthisOrdinance,exceptuponthepriorpaymentinfulloftheprincipalofalloftheBondsandanysuchSecuritiesthepaymentofwhichhasnotbeenextended.#575879vi36 00Section38.PromptPaymentofBonds.TheTownshallpromptlypaytheDebtServiceRequirementsofeveryBondattheplaces,onthedates,andinthemannerspecifiedhereinandintheBondsaccordingtothetrueintentandmeaninghereofSection39.UseofPrincipalandInterestAccountandDebtServiceReserveAccount.ThePrincipalandInterestAccountandtheDebtServiceReserveAccountshallbeusedsolelyandonlyforthepurposeofpayingtheDebtServiceRequirementsoftheBonds,anyAdditionalParityBondsandanyotherParitySecuritiestotheirrespectivematuritiesoranyRedemptionDateorRedemptionDatesonwhichtheTownisobligatedtoredeemBonds,subjecttoSection50hereof.Section40.AdditionalSecurities.TheTownshallnothereaflerissueanybondsorSecuritiesrelatingtotheLightandPowerFacilitiesandpayablefromthePledgedRevenues,otherthantheBonds,withoutcompliancewiththerequirementswithrespecttotheissuanceofAdditionalParityBondsorothersecuritiessetforthhereintotheextentapplicable.Section41.OtherLiens.AtthetimeofissuanceoftheBonds,thereshallbenoliensorencumbrancesofanynaturewhatsoeveronoragainsttheLightandPowerFacilitiesoranypartthereoforonoragainstthePledgedRevenues.Section42.SuretyBonds.EachofficialorotherpersonhavingcustodyoftheIncomeorresponsibleforitshandling,shallbefullybondedatalltimes,whichbondshallbeconditionedupontheproperapplicationofsaidmoneys.ThecostofeachsuchbondshallbeconsideredanOperationandMaintenanceExpense,unlessotherwiseprovidedbylaw.Section43.FederalIncomeTaxCovenants.TheTownCovenantstoandforthebenefitoftheOwnersoftheBondsasfollows:A.Arbitrage.TheTownwillnotdirectlyorindirectlyuseorpermittheuseofproceedsoftheBonds,oranyotherfundsoftheTownfromwhateversourcederived,toacquireanyinvestment,anditvillnottakeorpermittobetakenanyotheraction,whichwouldcausetheBondstobecharacterizedasarbitragebondswithinthemeaningofSection148oftheInternalRevenueCodeof1986,asamended(the“lixCode”),orwhichwouldotherwisecausetheinterestontheBondstobeincludableingrossincomeforfederalincometaxpurposes.IntheeventthatatanytimetheTownisoftheopinionthat,forpurposesofthisparagraph,itisnecessarytorestrictorlimittheyieldontheinvestmentofanymoneysheldbytheTownunderthisOrdinance,theTownshalltakesuchactionasmaybenecessary.B.Rebate.TheFinanceOfficershallcalculatetherebateamountfortheBonds,ifany,oneachcomputationdateinthemannerrequiredbyTreas.Reg.§1.148-3(oranysuccessorprovisiontheretothatisapplicabletotheBonds).Forthispurpose,acomputationdateisanydateselectedbytheFinanceOfficer,providedthefirstcomputationdateisnolaterthanthefiflhanniversaryofthedateofissueoftheBonds,asubsequentcomputationdateisnolaterthanfiveyearsafterthepreviouscomputationdateandthefinalcomputationdateisthedatethatalloftheBondsareretired.TheFinanceOfficershallpayovertotheUnitedStatesgovernment,from#575879v137 0CamountsondepositintheExcessInvestmentEarningsAccountorotherlegallyavailableThnds,anamountequalto90%oftherebateamountsocalculatedwithin60daysofeachcomputationdate(otherthanthefinalcomputationdate),andanamountequalto100%oftherebateamountsocalculatedwithin60daysofthefinalcomputationdate,inthemannerandattheplacerequiredbyTreas.Reg.§1.148-3(oranysuccessorprovisiontheretothatisapplicabletotheBonds).C.PrivateUseorLoan.TheTownwillnottakeorpermittobetakenanyactionthatwouldcausetheBondstobecharacterizedasprivateactivitybondswithinthemeaningofSection141oftheTaxCode,anditwilltakeallactionswithinitspowerandpermittedbylawwhichareormaybenecessarytopresenttheBondsfrombeingcharacterizedasprivateactivitybonds.Tothisend,theTownwilLnotpermitmorethan10%oftheproceedsoftheBondstobeused(directlyorindirectly)inthetradeorbusinessofnongovernmentalpersons,andwillnotuse(directlyorindirectly)anyoftheproceedsoftheBondstomakeorfinancealoan(ordeemedloan)tonongovernmentalpersons,inamannerthatcouldcausetheBondstobecharacterizedasprivateactivitybonds.Forthispurpose,apersonusestheproceedsoftheBondsif(A)itownsorleasesalloraportionoftheProjectfinancedwiththeBonds,(B)itisloanedalloraportionofthoseproceeds,(C)ithasactualorbeneficialuseofalloraportionoftheProjectfinancedwiththeBondspursuanttoamanagementorincentivepaymentcontract,anoutputcontractoranotherarrangementor(D)theproceedsareusedtosatisfyaprimaryandunconditionalobligationofsuchpersontoprovidetheProjectfinancedbytheBonds.ApersonisnottreatedasusingtheproceedsforthispurposemerelybecauseitusestheProjectfinancedbytheBondsasamemberofthegeneralpublic;however,usewillnotbetreatedasgeneralpublicuseifsuchpersonhaspriorityrightsorotherpreferentialbenefitsinrespectoftheProjectfinancedbytheBondspursuanttoanarrangementwiththeTown.D.FurtherActions.TheTownwilltakeallactionswithinitspowerandpermittedbylawwhichareormaybenecessarytoassurethatinterestontheBondsatalltimesremainsexcludablefromgrossincomeforfederalincometaxpurposes,includingcomplyingwiththeprovisionsoftheTownsTaxCertificate,thecovenantssetforthhereinandallrequirementsoftheTaxCodethatmustbesatisfiedsubsequenttotheissuanceofiheBondsforinterestontheBondstobe,orcontinuetobe,excludedfromgrossincomeforfederalincometaxpurposes.E.InformationReporting.TheTownwilltimelyfileafederalinformationreturnwithrespecttotheBondsasrequiredbysection149(e)oftheTaxCode.NotwithstandinganyprovisionofthisSection,theTownmayrelyconclusivelyonanopinionofBondCounselincomplying,orinanydeviationfromcomplying,withtheprovisionshereofSection44.DisposalofProperty.ExceptfortheuseoftheLightandPowerFacilitiesandservicespertainingtheretointheordinarycourseofbusiness,nopartoftheLightandPowerFacilitiesshallbesold,leased,mortgaged,pledged,encumberedorotherwisedisposedoforotherwisealienated,untilalloftheBondshavebeenpaidinfull,orunlessprovisionhasbeenmadetherefor,oruntiltheBondshaveotherwisebeenredeemed;provided,however,thattheTownmaysell,exchangeorleaseatanytimeandfromtimetotimeanypropertyorfacilitiesconstitutingpartoftheLightandPowerFacilitiesandnotneededintheconstruction,reconstructionoroperation#575879vi38 00thereof;butanyproceedsofanysuchsaleorexchangereceivedandnotusedtoreplacesuchpropertysosoldorexchangedshallbedepositedintheLightandPowerEnterpriseFund,andanyproceedsofanysuchleasereceivedshallbedepositedbytheTownasrevenuesoftheLightandPowerFacilities.NotwithstandingtheprovisionsofthisSection44,theTownmaydisposeofanyfacilityconstitutingapartoftheLightandPowerFacilities,providedthat(a)atthetimeofsuchdispositionsuchfacilityhasnotproducedIncomeatleastequaltotheOperationandMaintenanceExpensesreasonablyallocabletoitforaperiodofatleastonefullfiscalyearand(b)suchdispositionwillnot,intheopinionofBondCounsel,haveamaterialadverseeffectuponthefederalincometaxtreatmentofinterestontheBonds.Section45.InspectionofRecords.AnyOwnerofanyoftheBondsoranyothersecuritiespayablefromthePledgedRevenues,anydulyauthorizedagentoragentsofsuchOwner,ortheUnderwritershallhavetherightatallreasonabletimestoinspectallrecords,accountsanddatarelatingthereto,concerningtheLightandPowerFacilitiesortheIncome,tomakecopiesofsuchrecords,accountsanddataattheOwner’sorUnderwriter’sexpense,andtoinspecttheLightandPowerFacilitiesandpropertiescomprisingtheLightandPowerFacilities.Section46.AuditsRequired.TheTown,annuallyfollowingthecloseofeachFiscalYear,shallorderanauditfortheFiscalYearofthebooksandaccountspertainingtotheLightandPowerFacilitiestobemadeforthwithbyanIndependentAccountantaspartoftheTown’sannualauditprocedure.TheBoardshallorderthattheTown’sauditreportshowthereceiptsanddisbursementsforeachfundoraccountpertainingtotheLightandPowerFacilitiesortheIncome.AprorataportionoftheexpensesincurredinconnectionwiththeTown’sannualauditproceduremayberegardedandpaidasanOperationandMaintenanceExpense.Section47.InsuranceandReconstruction.ExcepttotheextentthattheTownelectstoinsureitself,theTownshallatalltimesmaintainwithresponsibleinsurersallsuchinsurancereasonablyrequiredandobtainablewithinlimitsandatcostsdeemedreasonablebytheTownasiscustomarilymaintainedwithrespecttolightandpowerfacilitiesandservicesoflikecharacteragainstlossofordamagetotheLightandPowerFacilitiesandagainstpublicandotherliabilitytotheextentatleastreasonablynecessarytoprotecttheinterestoftheTownandofeachOwnerofBondsoranyothersecuritypayablefromthePledgedRevenues,exceptashereinotherwiseprovided.Ifanyrevenuc-generatingpartoftheLightandPowerFacilitiesshallbedamagedordestroyed,theTownshall,asexpeditiouslyaspossible,commenceanddiligentlyproceedwiththerepairorreplacementofthedamagedordestroyedpropertysoastorestorethesametouse,providedthatnosuchrepairorreplacementshallberequirediftheTownshalldetermineingoodfaiththatthedamagedordestroyedpropertywasnot,priortosuchdamageordestruction,materiallycontributingtothePledgedReA’enues.TheproceedsofanyinsuranceappertainingtotheLightandPowerFacilitiesshallbepayabletotheTownand(exceptforproceedsofuseandoccupancyinsurance)shallbeappliedtothenecessarycostsinvolvedinsuchrepairandreplacement,andtotheextentnotsoappliedshall(togetherwiththeproceedsofanysuchuseandoccupancyinsurance)bedepositedintheLightandPowerEnterpriseFundasIncome.NothinghereinshallbedeemedtobeawaiverbytheTownortheEnterpriseoftheprotectionsaffordedbytheColoradoGovernmentalImmunityAct.#575879vi39 00Section48.CompletionofProject;EstimatedLifeofProject.TheTown,withtheproceedsderivedfromthesaleoftheBonds,andanyotherlegallyavailablemoneys,includingtheproceedsderivedfromtheissuanceofAdditionalParityBondsandotherPantSecurities,shallproceedpromptlyandwithallduespeedtocausetheProjecttobecompletedwithoutdelaytothebestoftheTownsabilityandwithduediligence,ashereinprovided.TheBoardherebydeterminesthattheestimatedlifeoftheProjectisnotlessthanthemaximumtermoftheBonds1ermittedhereunder.Section49.Continuin2Disclosure.TheTownherebycovenantsandagreeswiththeUnderwriterandtheOwnersoftheBondsthatitwillcomplywithandcam’outalloftheprovisionsoftheContinuingDisclosureCertificate.NotwithstandinganyotherprovisionofthisOrdinance,failureoftheTowntocomplywiththeContinuingDisclosureCertificateshallnotbeconsideredanEventofDefault;providedthattheOwnersoftheBondsmaytakesuchactionsasmaybenecessaryorappropriate,includingseekingamandatoryinjunctionorspecificperformance,tocausetheTowntocomplywithitsobligationsunderthisSection49.Section50.Defeasance.WhenallDebtServiceRequirementsoftheBondshavebeendulypaid,thepledgeandlienandallobligationshereundershalltherebybedischargedandtheBondsshallnolongerbedeemedtobeoutstandingwithinthemeaningofthisOrdinance.ThereshallbedeemedtobesuchduepaymentwhentheTownhasplacedinescroworintrustwithaTrustBank,locatedwithinorwithouttheState,cashorFederalSecuritiesinanamountsufficient(includingtheknownminimumyieldavailableforsuchpurposefromFederalSecuritiesinwhichsuchamountwhollyorinpartmaybeinitiallyinvested)topayallDebtServiceRequirementsoftheBonds,asthesamebecomedueattheirmaturitydateoruponanyRedemptionDateasofwhichtheTownshallhaveexercisedorshallhaveobligateditselftoexerciseitsoptiontocallBondsforpriorredemption.TheFederalSecuritiesshallb&omeduepriortotherespectivetimesatwhichtheproceedsthereofshallbeneeded,inaccordancewithascheduLeestablishedandagreeduponbetweentheTownandsuchbankatthetimeofthecreationoftheescrowortrust,ortheFederalSecuritiesshallbesubjecttoredemptionattheoptionoftheOwnerthereoftoassuresuchavailabilityassonecdedtomeetsuchschedule.NothinghereinshallbeconstruedtoprohibitapartialdefeasanceoftheoutstandingBondsinaccordancewiththeprovisionsofthisSection50.Section51.EventsofDefault.EachofthefollowingeventsisherebydeclaredtobeandtoconstituteanEventofDefault:A.NonpaymentofPrincipal.PaymentoftheprincipalofanyoftheBondsisnotmadewhenthesamebecomesdueandpayable,eitheratmaturity’orbyproceedingsforpriorredemption,orotherwise;B.NonpaymentofInterest.Paymentofanyinstallmentofinterestisnotmadewhenthesamebecomesdueandpayable;#575879vi40 0’0C.IncapacitytoPerform.TheTownforanyreasonbecomesincapableoffulfillingitsobligationshereunder;D.NonperfomianceofDuties.TheTownshallhavefailedtocarryoutandtoperform(oringoodfaithtobegintheperformanceof)allactsandthingsla±ullyrequiredtobecarriedoutortobeperformedbyitunderanycontractrelatingtotheIncomeortotheLightandPowerFacilitiesorotherwise,including,withoutlimitation,thisOrdinance,andsuchfailureshallcontinueforsixty(60)daysafterreceiptofnoticefromtheOwnersoftwenty-fivepercent(25%)inaggregateprincipalamountoftheBondsthenOutstanding;providedthatifsuchfailurecannotbecuredwithinsuchsixty(60)daysandifduringthatperiodcorrectiveactionhascommencedtoremedysuchfailureandsubsequentlyisdiligentlypursuedbytheTowntothecompletionofsuchperformance,anEventofDefaultshallnotbedeemedtohaveoccurred;E.FailuretoReconstruct.TheTowndiscontinuesorunreasonablydelaysorfailstocarryoutwithreasonabledispatchthereconstructionofanyessentialpartoftheLightandPowerFacilitieswhichiscondemned,destroyedordamagedandisnotpromptlyrepairedorreplaced(whethersuchfailuretorepairthesameisduetoimpracticalityofsuchrepairorreplacement,orisduetoalackofmoneystherefor,orforotherreason);F.AppointmentofReceiver.Anorderordecreeisenteredbyacourtofcompetentjurisdiction,withtheconsentoracquiescenceoftheTown,appointingareceiverorreceiversfortheLightandPowerFacilitiesorfortheIncomeandanyothermoneyssubjecttothelientosecurethepaymentoftheBonds,orboththeLightandPowerFacilitiesandsuchmoneys,orifanyorderordecree,havingbeenenteredwithouttheconsentoracquiescenceoftheTown,isnotvacatedordischargedorstayedonappealwithinsixty(60)daysafterentry;0.DefaultofAnyProvision.TheTowndefaultsinthedueandpunctualperformanceofanyotheroftherepresentations,covenants,conditions,agreementsandotherprovisionscontainedintheBondsorinthisOrdinanceonitsparttobeperformed,andifsuchdefaultcontinuesforsixty(60)daysaftcrwrittennotice,speci’ingsuchdefaultandrequiringthesametoberemedied,isgiventotheTownbytheOiersoftwenty-fivepercent(25%)inaggregateprincipalamountoftheBondsthenOutstanding;providedthatifsuchfailurecannotbecuredwithinsuchsixty(60)daysandifduringthatperiodcorrectiveactionhascommencedtoremedysuchdefaultandsubsequentlyisdiligentlypursuedtothecompletionofsuchperformance,anEventofDefaultshallnotbedeemedtohaveoccurred.Section52.RemediesforDefaults.UponthehappeningandcontinuanceofanyoftheEventsofDefault,asprovidedinSection51hereof,thenandinevery’casetheOwnerorOwnersofnotlessthantwenty-fivepercent(25%)inaggregateprincipalamountoftheBondsthenOutstanding,including,withoutlimitation,atrusteeortrusteestherefor.mayproceedagainsttheTownanditsagents,officersandemployeestoprotectandtoenforcetherightsofanyOwnerofBondsunderthisOrdinancebymandatoryinjunctionorbyothersuit,action,orspecialproceedingsinequityoratlaw,inanycourtofcompetentjurisdiction,eitherfortheappointmentofareceiveroranoperatingtrusteeorforthespecificperformanceofanycovenantoragreementcontainedherein#575819vi41 00orforanyproperlegalorequitableremedyassuchOwnerorOwnersmaydeemmosteffectualtoprotectandtoenforcetherightsaforesaid,ortherebytoenjoinanyactorthingwhichmaybeunlawfulorinviolationofanyrightofanyOwnerofanyBond,ortorequiretheTowntoactasifitwerethetrusteeofanexpresstrust,oranycombinationofsuchremediesorasotherwisemaybeauthorizedbyanystatuteorotherprovisionoflaw.Allsuchproceedingsatlaworinequityshallbeinstituted,hadandmaintainedfortheequalbenefitofallownersoftheBonds,andanyAdditionalParityBondsorotherParitySecuritiesthenOutstanding.An)’receiveroroperatingtrusteeappointedinanyproceedingstoprotecttflerightsofsuchOwnershereundermaycollect,receiveandapplyallIncomearisingaftertheappointmentofsuchreceiveroroperatingtrusteeinthesamemannerantheTownitselfmightdo.TheconsenttoanysuchappointmentinherebyexpresslygrantedbytheTown.Section53.RightsandPrivilegesCumulative.ThefailureofanyOwnerofanyOutstandingBondtoproceedinanymannerhereinprovidedshallnotrelievetheTownoranyofitsofficers,agentsoremployeesofanyliabilityforfailuretoperformtocarryoutanyduty,obligationorothercommitment.EachrightorprivilegeofanysuchOwnerortrusteethereforisinadditionandiscumulativetoanyotherrightorprivilege,andtheexerciseofanyrightorprivilegebyoronbehalfofanyOwnershallnotbedeemedawaiverofanyotherrightorprivilegethereof.EachOwnerofanyBondshallbeentitledtoalloftheprivileges,rightsandremediesprovidedorpermittedinthisOrdinanceandasotherwiseprovidedorpermittedbylaworinequityorbystatute,subjecttotheapplicableprovisionsconcerningtheIncomeandtheproceedsoftheBonds.NothinghereinaffectsorimpairstherightofanyOwnerofanyBondtoenforcethepaymentoftheDebtServiceRequirementsdueinconnectionwiththisBondortheobligationoftheTowntopaytheDebtServiceRequirementsofeachBondtotheOwnerthereofatthetimeandtheplaceexpressedinsuchBond.Section54.DutiesUpbnDefault.UponthehappeningofanyoftheEventsofDefaultasprovidedinSection51hereof,theTown,inaddition,willdoandperformallproperactsonbehalfofandfortheOwnersoftheOutstandingBondstoprotectandtopreservethesecuritycreatedforthepaymentoftheirBondsandtoinsurethepaymentoftheDebtServiceRequirementspromptlyasthesamebecomedue.Duringanyperiodofdefault,solongasanyoftheBonds,astoanyDebtServiceRequirements,areOutstanding,excepttotheextentitmaybeunlawfultodoso,allPledgedRevenuesshallbepaidintothePrincipalandInterestAccountonanequitableandproratedbasis,andusedforthepurposesthereinprovided.IftheTownfailsorrefusestoproceedasinthisSection54provided,theownerorOwnersofnotlessthantwenty-fivepercent(25%)inaggregateprincipalamountoftheBondsthenOutstanding,afterdemandinwriting.mayproceedtoprotectandtoenforcetherightsoftheOwnersoftheBondsashereinaboveprovided;andtothatendanysuchownersofOutstandingBondsshallbesubrogatedtoallrightsoftheTownunderanyagreementorcontractinvolvingthePledgedRevenuesenteredintopriortotheeffectivedateofthisOrdinanceorthereafterwhileanyoftheBondsareOutstanding.NothinghereinrequirestheTowntoproceedasprovidedhereinifitdeterminesingoodfaithandwithoutanyabuseofitsdiscretionthatifitsoproceedsitismorelikelythannottoincuranetlossratherthananetgainorthatsuchactionislikelytoaffectmateriallyandprejudiciallytheOwnersoftheOutstandingBondsandanyOutstandingParitySecurities.#575879vi42 aCSection55.AmendmentsofOrdinanceNotReguirinaConsentofBondOwners.TheTow-nmay,withouttheconsentof,ornoticeto,theOwnersoftheBonds,adoptanordinancesupplementalhereto(whichamendmentsshallthereafterformaparthereof)foranyoneormoreorallofthefollowingpurposes:(I)Tocureorcorrectanyformaldefect,ambiguityorinconsistentprovisioncontainedinthisOrdinance;(2)ToappointsuccessorstothePayingAgentorRegistrar;(3)TodesignateatrusteefortheOwnersoftheBonds,totransfercustodyandcontroloftheIncometosuchtrustee,andtoprovidefortherightsandobligationsofsuchtrustee;(4)foaddtothecovenantsandagreementsoftheTownorthelimitationsandrestrictionsontheTownsetforthherein;(5)Topledgeadditionalrevenues,propertiesorcollateraltothepaymentoftheBonds;(6)TocausethisOrdinancetocomplywiththeTrustIndentureActof1939,asamendedfromtimetotime;or(7)ToeffectanysuchotherchangesheretowhichdonotintheopinionofnationallyrecognizedbondcounselmateriallyadverselyaffecttheinterestsoftheOwnersoftheBonds.Section56.AmendmentofOrdinanceReQuiringConsentofBondOwners.ExclusiveoftheamendatoiyordinancescoveredbySection55hereof,thisOrdinancemaybeamendedormodifiedbyordinancesorotherlegislativemeasuresdulyadoptedbytheBoard,withoutreceiptbyitoranyadditionalconsideration,butwiththewrittenconsentoftheOwnersofsixty-sixpercent(66%)inaggregateprincipalamountoftheBondsthenoutstandingatthetimeoftheadoptionofsuchamendatoiyordinance,providedthatnosuchamendatoryordinanceshallpermit:A.ChangingPayment.AchangeinthematurityorinthetermsofredemptionoftheprincipalofanyOutstandingBondoranyinstallmentofinterestthereon;orB.ReducingReturn.AreductionintheprincipalamountofanyBondortherateofinterestthereonwithouttheconsentoftheowneroftheBond;orC.PriorLien.ThecreationofalienuponorapledgeofrevenuesrankingpriortothelienortothepledgecreatedbythisOrdinance;or#575879vi43 CCD.ModifyingAmendmentTerms.AreductionoftheprincipalamountorpercentagesofBonds,oranymodificationothenviseaffectingthedescriptionofBonds,otherwisechangingtheconsentoftheOwnersofBonds,whichmayberequiredhereinforanyamendmenthereto;orE.PrioritiesBetweenBonds.TheestablishmentofprioritiesasbetweenBondsissuedandOutstandingundertheprovisionsofthisOrdinance;orF.PartialModification.AnymodificationsothenvisemateriallyandprejudiciallyaffectingtherightsorprivilegesoftheOwnersoflessthanalloftheBondsthenOutstanding.WhenevertheBoardproposestoamendormodi’thisOrdinanceundertheprovisionsofthisSection56itshallgivenoticeoftheproposedamendmentbymailingsuchnoticetotheUnderwriter,ortoanysuccessorthereofknowntotheFinanceOfficer,andtoallownersofBondsattheaddressesappearingontheregistrationbooksoftheTown.SuchnoticeshallbrieflysetforththenatureoftheproposedamendmentandshallstatethatacopyoftheproposedamendatoryordinanceorotherinstrumentisonfileintheofficeoftheFinanceOfficerforpublicinspection.Section57.TimeforandConsenttoAmendment.Wheneveratanytimewithinone(1)yearfromthedateofthecompletionofthenoticerequiredtobegivenbySection56hereofthereshallbefiledintheofficeoftheFinanceOfficeraninstrumentorinstrumentsexecutedbytheOwnersofatleastsixty-sixpercent(66%)inaggregateprincipalamountoftheBondsthenOutstanding,whichinstrumentorinstrunientsshallrefertotheproposedamendatoryordinanceorotherinstrumentdescribedinsuchnoticeandshallspecificallyconsenttoandapprovetheadoptionofsuchordinanceorotherinstrument,thereupon,butnototherwise,theBoardmayadoptsuchamendatoryordinanceorinstrumentandsuchordinanceorinstrumentshallbecomeeffective.IftheOwnersofatleastsixty-sixpercent(66%)inaggregateprincipalamountoftheBondsthenOutstanding,atthetimeoftheadoptionofsuchamendatoryordinanceorinstrument,orthepredecessorsintitleofsuchowners,shallhaveconsentedtoandapprovedtheadoptionthereofashereinprovided,noOwnerofanyBond,whetherornotsuchOwnershallhaveconsentedtoorshallhaverevokedanyconsentashereinprovided,shallhaveanyrightorinteresttoobjecttotheadoptionofsuchamendatoiyordinanceorotherinstrumentortoobjecttoanyofthetermsorprovisionsthereincontainedortotheoperationthereofortoenjoinorrestraintheTownfromtakinganyactionpursuanttotheprovisionsthereofAnyconsentgivenbytheOwnerofaBondpursuanttotheprovisionsthereofshallbeirrevocableforaperiodofsix(6)monthsfromthedateofthecompletionofthenoticeaboveprovidedforandshallbeconclusiveandbindinguponallfutureOwnersofthesameBondduringsuchperiod.Suchconsentmayberevokedatanytimeaftersix(6)monthsfromthecompletionofsuchnotice,bytheownerwhogavesuchconsentorbyasuccessorintitle,byfilingnoticeofsuchrevocationwiththeFinanceOfficer,butsuchrevocationshallnotbeeffectiveiftheOwnersofsixty-sixpercent(66%)inaggregateprincipalamountoftheBondsOutstandingashereinprovided,priortotheattemptedrevocation,shallhaveconsentedtoandapprovedtheamendatoryinstrumentreferrddtoinsuchrevocation.#575879vi44 CCSection58.UnanimousConsent.Notwithstandinganythingintheforegoingprovisionscontained,thetermsandtheprovisionsofthisOrdinance,orofanyordinanceorinstrumentamendatorythereof,andtherightsandtheobligationsoftheTownandoftheOwnersoftheBondsmaybemodifiedoramendedinanyrespectupontheadoptionbytheTownanduponthefilingwiththeFinanceOfficerofaninstrumenttothateffectandwiththeconsentoftheOwnersofallthethenOutstandingBonds,suchconsenttobegiveninthemannerprovidedinSection57hereotandnonoticetoOwnersofBondsshallberequiredasprovidedinSection56hereof,norshallthetimeofconsentbelimitedexceptanmaybeprovidedinsuchconsent.Section59.ExclusionofBonds.AtthetimeofanyconsentorotheractiontakenhereundertheRegistrarshallfurnishtotheFinanceOfficeracertificate,uponwhichtheFinanceOfficermayrely,describingallBondstobeexcludedforthepurposeofconsentorotheractionoranycalculationofOutstandingBondsprovidedforhereunder,and,withrespecttosuchexcludedBonds,theTowiishallnotbeentitledorrequiredwithrespecttosuchBondstogiveorobtainanyconsentortotakeanyotheractionprovidedforbereunder.Section60.NotationonBonds.AnyoftheBondsdeliveredaftertheeffectivedateofanyactiontakenasprovidedinSection56orBondsoutstandingattheeffectivedateofsuchaction,maybearanotationthereonbyendorsementorotherwiseinformapprovedbytheBoardastosuchaction;andifanysuchBondssoexecutedanddeliveredaftersuchdatedoesnotbearsuchnotation,thenupondemandoftheOwnerofanyBondOutstandingatsucheffectivedateanduponpresentationofhisBondforsuchpurposeattheprincipalofficeoftheTown,suitablenotationshallbemadeonsuchBondbytheFinanceOfficerastoanysuchaction.IftheBoardsodetermines,newBondssomodifiedasintheopinionoftheBoardtoconformtosuchactionshallbeprepared,executedanddelivered;andupondemandoftheOwnerofanyBondthenOutstanding,shallbeexchangedwithoutcosttosuchOwnerforBondsthenoutstandinguponsurrenderofsuchoutstandingBonds.Section61.NoPledgeofProperty.ThepaymentoftheBondsisnotsecuredbyanencumbrance,mortgage,orotherpledgeofpropertyoftheTown,exceptforthePledgedRevenues.NopropertyoftheTown,subjecttosuchexception,ispledgedforthepaymentoftheBondsorshallbeliabletobeforfeitedortakeninpaymentoftheBonds.Section62.Provisions.RelatingtoBondInsurance.TheprovisionsofthisSection62shallgoverninallcircumstances,notwithstandinganythingtothecontrarysetforthinthisOrdinance.A.InsurerSoleHolderoftheBonds.TheInsurershallbedeemedtobethesoleholderoftheBondsinsuredbyitforthepurposeofexercisinganyvotingrightorprivilegeorgivinganyconsentordirectionortakinganyotheractionthattheholdersoftheBondsinsuredbyitareentitledtotakepursuanttothisOrdinance.ThematurityofBondsinsuredbytheInsurershallnotbeacceleratedwithouttheconsentoftheInsurer.B.Waiver.Modification.Amendment,orSupplementtothisOrdinance.Nowaiver,modification,amendmentorsupplementtothisOrdinancemaybecomeeffectiveexcept#575S79vI45 00uponobtainingthepriorwrittenconsentoftheInsurer.CopiesofanymodificationoramendmenttothisOrdinanceshallbesenttoStandard&Poor’sRatingsServicesatleast10dayspriortotheeffectivedatehereof.C.PaymentsbytheInsurer.AmountspaidbytheInsurerundertheMunicipalBondInsurancePolicyshallnotbedeemedpaidforpurposesofthisOrdinanceandshallremainOutstandingandcontinuetobedueandowinguntilpaidbytheTowninaccordancewiththisOrdinance.TheInsurershall,totheextentitmakesanypaymentofprincipaloforinterestontheBonds,becomesubrogatedtotherightsoftherecipientsofsuchpaymentsinaccordancewiththetermsoftheMunicipalBondInsurancePolicy.ThisOrdinanceshallnotbedischargedunlessallamountsdueortobecomeduetotheInsurerhavebeenpaidinfullordulyprovidedfor.D.ClaimsUpontheMunicipalBondInsurancePolicyandPaymentsbyandtotheInsurer.If,onthebusinessdaypriortotherelatedscheduledinterestpaymentdateorprincipalpaymentdate(“PaymentDate”)thereisnotondepositwiththePayingAgent,aftermakingalltransfersanddepositsrequiredunderthisOrdinance,moneyssufficienttopaytheprincipalofandinterestontheBondsdueonsuchPaymentDate,thePayingAgentshallmakeaclaimundertheMunicipalBondInsurancePolicyandgivenoticetotheInsurerandtoitsdesignatedagent(ifany)(the“Insurer’sFiscalAgent”)bytelephoneortelecopyoftheamountofsuchdeficiencyoftheamountofsuchdeficiency,andtheallocationofsuchdeficiencybetweentheamountrequiredtopayinterestontheBondsandtheamountrequiredtopayprincipaloftheBonds,confirmedinwritingtotheInsurerandtheInsurer’sFiscalAgentby12:00noon,NewYorkCitytime,onsuchBusinessDaybyfillingintheformofNoticeofClaimandCertificatedeliveredwiththeMunicipalBondInsurancePolicy.Intheeventtheclaimtobemadeisforamandatorysinkingfundredemptioninstallment,uponreceiptofthemoneysdue,thePayingAgentshallauthenticateanddelivertoaffectedBondholderswhosurrendertheirBondsanewBondorBondsinanaggregateprincipalamountequaltotheunredeemedportionoftheBondsurrendered.ThePayingAgentshalldesignateanyportionofpaymentofprincipalonBondspaidbytheInsurer,whetherbyvirtueofmandatorysinkingfundredemption,maturityorotheradvancementofmaturity,onitsbooksasareductionintheprincipalamountofBondsregisteredtothethencurrentBondholder,whetherDTCoritsnomineeorotherwise,andshallissueareplacementBondtotheInsurer,registeredinthenameofFinancialSecurityAssuranceInc.,inaprincipalamountequaltotheamountofprincipalsopaid(withoutregardtoauthorizeddenominations);providedthatthePayingAgent’sfailuretosodesignateanypaymentorissueanyreplacementBondshallhavenoeffectontheamountofprincipalorinterestpayablebytheTownonanyBondorthesubrogationrightsoftheInsurer.ThePayingAgentshallkeepacompleteandaccuraterecordofallfundsdepositedbytheInsurerintothePolicyPaymentsAccountandtheallocationofsuchfindstopaymentofinterestonandprincipalpaidinrespectofanyBond.TheInsurershallhavetherighttoinspectsuchrecordsatreasonabletimesuponreasonablenoticetothePayingAgent.11575879vi46 00UponpaymentofaclaimundertheMunicipalBondInsurancePolicythePayingAgentshallestablishaseparatespecialpurposetrustaccountforthebenefitofBondholdersreferredtohereinasthe“PolicyPaymentsAccount”andoverwhichthePayingAgentshallhaveexclusivecontrolandsolerightofwithdrawal.ThePayingAgentshallreceiveanyamountpaidundertheMunicipalBondInsurancePolicyintrustonbehalfofBondholdersandshalldepositanysuchamountinthePolicyPaymentsAccountanddistributesuchamountonlyforpurposesofmakingthepaymentsforwhichaclaimwasmade.SuchamountsshallbedisbursedbythePayingAgenttoBondholdersinthesamemannerasprincipalandinterestpaymentsaretobemadewithrespecttotheBondsunderthesectionshereofregardingpaymentofBonds.Itshallnotbenecessaryforsuchpaymentstobemadebychecksorwiretransfersseparatefromthecheckorwiretransferusedtopaydebtservicewithotherhindsavailabletomakesuchpayments.FundsheldinthePolicyPaymentsAccountshallnotbeinvestedbythePayingAgentandmaynotbeappliedtosatis’anycosts,expensesorliabilitiesofthePayingAgent.AnyfundsremaininginthePolicyPaymentsAccountfollowingaPaymentDateshallpromptlyberemittedtotheInsurer.E.NoticeProvisions.TheInsurershallbeprovidedwithallreports,noticesandcorrespondencetobedeliveredunderthetermsofthisOrdinance.ThenoticeaddressoftheInsureris:FinancialSecurityAssuranceInc.,350ParkAvenue,NewYork,NewYork10022-6022,Attention:ManagingDirector-Surveillance;Re:PolicyNo.______,Telephone:(212)826-0100;Telecopier:(212)339-3529.IneachcaseinwhichnoticeorothercommunicationreferstoanEventofDefault,thenacopyofsuchnoticeorothercommunicationshallalsobesenttotheattentionofGeneralCounselandshallbemarkedtoindicate“URGENTMATERIALENCLOSED.”F.InsurerThirdPartyBeneficiary.TheInsurershallbedeemedtobeathirdpartybeneficiarytothisOrdinance.Section63.AuthorizationtoExecuteCollateralDocuments.TheMayorandtheTownClerk,otherofficersoftheTown.andthemembersoftheBoardarcherebyauthorizedanddirectedtotakeanyandallactionsnecessaryorappropriatetoeffectuatetheprovisionsofthisOrdinance,includingbutnotlimitedto:(i)theexecutionoftheRegistrarAgreement,theContinuingDisclosureCertificate,andtheBondPufthaseAgreement;and(ii)theexecutionofsuchcertificatesandaffidavitsasreasonablymayberequiredbytheUnderwriter.Section64.CostsandExpensesofIssuance.AllcostsandexpensesincurredinconnectionwiththeissuanceandpaymentoftheBonds,includingwithoutlimitationtheUnderwriter’sdiscount,andallotherexpensesrelatedtotheissuanceoftheBonds,shallbepaidfromproceedsoftheBonds,inanaggregateamountnottoexceed560,000andsuchmoneysareherebyappropriatedforthatpurpose.Section65.RatificationandApprovalofPriorActions.AllactionsheretoforetakenbytheofficersoftheTownandmembersoftheBoard,consistentwiththeprovisionsofthisOrdinance,#575879vi47 CCrelatingtotheauthorization,sale,issuance,anddeliveryoftheBonds,areherebyratified,approved,andconfirmed.Section66.Approval.ofOfficialStatement.TheBoardherebyapprovesthePreliminaryOfficialStatementdatedNovember22,1999,intheformpresentedtotheBoard,anddeemssuchdocumentfinalasofitsdatewithinthemeaningofRule15c2-12oftheU.S.SecuritiesandExchangeCommission,andauthorizesthepreparationofafinalOfficialStatementcontaininganyupdatedinformationregardingitemsdescribedinthePreliminaryOfficialStatementwhichbecomeknowntotheTownpriortothedateofdeliveryoftheBonds.CopiesofthePreliminaryOfficialStatementandfinalOfficialStatementareherebyauthorizedtobedistributedbytheUnderwritertoallinterestedpersonsincoimectionwiththesaleoftheBonds.Section67.OrdinanceIrrepealable.AftertheBondsareissued,thisOrdinanceshallbeandremainirrepealableuntiltheBondsandtheinterestaccruedthereonshallhavebeenfi.illypaid,satisfied,anddischarged.Section68.Repealer.Allacts,orders,ordinances,orpartsthereof,inconflictwiththisOrdinanceareherebyrepealed,butonlytotheextentofsuchconflict.Section69.Severability.IfoneormoresectionsorpartsofthisOrdinanceshallbeadjudgedunenforceableorinvalid,suchjudgmentshallnotaffect,impair,orinvalidatetheremainingprovisionsofthisOrdinance,itbeingtheintentionthatthevariousprovisionshereofareseverable.Section70.RecordingandAuthentication.ThisOrdinance,immediatelyuponitspassage,shallberecordedintheTownbookofOrdinanceskeptforthatpurpose,shallbeauthenticatedbythesignaturesoftheMayorandoftheTownClerk.Section71.EmergencyDeclaration.ThisOrdinanceasre-enactedherebyisdeclaredtobenecessarytotheimmediatepreservationofthepublichealthorsafetyforthereasonthattheTownandtheUnderwriterhaveconfirmedtocommittedpurchasersoftheBondsauthorizedhereinthattheBondsaretobeissuedonDecember29,1999;itisnecessaryforthisOrdinancetobeeffectivebeforetheBondscanbeissuedandtheincompletepublicationofthisOrdinancebeforethisreenactmentpreventeditstakingeffectpriortoDecember29,1999.IftheTownwereforanyreasonunabletoissueanddelivertheBondsonDecember29,1999,thepotentialresultwouldbeaseverefinanciallosstotheTown.#575879vi48 CCSection72.EffectiveDate.ThisOrdinanceasre-enactedshalltakeeffectandbeenforceduponitsadoptionifitisadoptedbytheaffirmativevoteofthree-fourthsofthemembersoftheBoard.RE-ENACTEDANDADOPTEDasanemergencyordinanceonthe14IhdayofDecember,1999.(SEAL)ATTEST:TOWNOFESTESPARK,LARIMERCOUNTY,COLORADOTownClerkMaybr#575879vi49 00ThosevotingAYE:31aetezt)‘6—tALk>ThosevotingNAY:11L41S.Three-fourthsofthemembersoftheBoardhavingvotedinfavorofthemotion,thepresidingofficerthereupondeclaredthemotioncarriedandtheOrdinancere-enactedandadoptedasanemergencyordinance.Thereupon,afterconsiderationofotherbusinesstocomebeforetheBoard,themeetingwasadjourned.#575879vi50 00STATEOFCOLORADO))COUNTYOFLARIMER)ss.)TOWNOFESTESPARK)I,VickieO’Connor,TownClerkoftheTownofEstesPark,LarimerCounty,Colorado,doherebycerti1’thattheforegoingpagesnumberedfromIto48,inclusive,constituteafull,true,andcorrectcopyoftherecordoftheproceedingstakenbytheBoardofTrusteesoftheTownataregularmeetingthereofheldattheTownHall,170MacGregor,inEstesPark,Colorado,theregularmeetingplaceoftheBoard,onTuesday,December14,1999,at7:00p.m.,insofarassaidproceedingsrelatetothere-enactmentandadoptionoftheOrdinancethereinsetforthconcerningtheissuanceofLightandPowerRevenueBonds.There-enactedOrdinancehasbeendulysignedbytheMayoroftheTownandbymyself,astheTownClerk,andsealedwiththecorporatesealoftheTown.INWITNESSWHEREOF.IhavehereuntosetmyhandandofficialsealoftheTownofEstesPark,Coloradothis14thdayofDecember,1999.(SEAL)TownClerk#575879vi51