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Ordinance 2007-10 ORDINANCE NO. 2007-10 AN ORDINANCE AUTHORIZING THE ISSUANCE OF "CITY OF WYLIE, TEXAS, GENERAL OBLIGATION REFUNDING BONDS, SERIES 2007"; SPECIFYING THE TERMS AND FEATURES OF SAID BONDS; LEVYING A CONTINUING DIRECT ANNUAL AD VALOREM TAX FOR THE PAYMENT OF SAID BONDS; PROVIDING FOR THE REDEMPTION OF CERTAIN OUTSTANDING OBLIGATIONS OF THE CITY; AND RESOLVING OTHER MATTERS INCIDENT AND RELATED TO THE ISSUANCE, SALE, PAYMENT AND DELIVERY OF SAID BONDS, INCLUDING THE APPROVAL AND EXECUTION OF A PAYING AGENT/REGISTRAR AGREEMENT, A PURCHASE CONTRACT AND A SPECIAL ESCROW AGREEMENT AND THE APPROVAL AND DISTRIBUTION OF AN OFFICIAL STATEMENT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Wylie, Texas (the °City") has heretofore issued, sold, and delivered, and there is currently outstanding obligations totaling in original principal amount $4,745,000 of the following issues or series (hereinafter collectively called the "Refunded Obligations"), to wit: (1) City of Wylie, Texas, General Obligation Bonds, Series 1997, dated January 1, 2007, scheduled to mature on February 15 in each of the years 2008 through 2014 and 2017, and aggregating in principal amount of $1,790,000 (the "Series 1997 Refunded Bonds"); (2) City of Wylie, Texas, General Obligation Bonds, Series 1999, dated September 1, 1999, scheduled to mature on February 15 in each of the years 2011 through 2019, and aggregating in principal amount of $1,870,000 (the "Series 1999 Refunded Bonds"); and (3) City of Wylie, Texas, General Obligation Bonds, Series 2000, dated August 15, 2000, scheduled to mature on February 15 in each of the years 2013 through 2018 and 2020, and aggregating in principal amount of $1,085,000 (the "Se~ies 2000 Refunded Bonds"); and WHEREAS, pursuant to the provisions of V.T.C.A., Government Code, Chapter 1207, the City Council is authorized to issue refunding bonds and deposit the proceeds of sale directly with any place of payment for the Refunded Obligations, or other authorized depository, and such deposit, when made in accordance with said statute, shall constitute the making of firm banking and financial arrangements for the discharge and final payment of the Refunded Obligations; and WHEREAS, the City Council hereby finds and determines that the Refunded Obligations should be refunded at this time, and such refunding will result in the City saving approximately $290,301.46 in debt service payments on such indebtedness and further provide present value savings of approximately $207.298.43; now, therefore, NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS: SECTION 1: Authorization - Desianation - Principal Amount - Purpose. General obligation bonds of the City shall be and are hereby authorized to be issued in the aggregate principal amount of $4,815,000.00 to be designated and bear the title "CITY OF WYLIE, TEXAS, GENERAL OBLIGATION REFUNDING BONDS, SERIES 2007" (hereinafter referred to 45889459.1 /10613025 Ordinance No. 2007-10 General Obligation Refunding Bonds, Series 2007 as the "Bonds"), for the purpose of providing funds for the discharge and final payment of certain outstanding obligations of the City (identified in the preamble hereof and referred to as the "Refunded Obligations") and to pay costs of issuance, in accordance with the Constitution and laws of the State of Texas, including V.T.C.A., Government Code, Chapter 1207. SECTION 2: Fullv Reqistered Obliqations - Bond Date -Authorized Denominations-Stated Maturities-Interest Rates. The Bonds shall be issued as fully registered obligations only, shall be dated March 15, 2007 (the "Bond Date"), shall be in denominations of $5,000 or any integral multiple (within a Stated Maturity) thereof, and shall become due and payable semiannually on February 15 in each of the years and in principal amounts (the "Stated Maturities") in accordance with the following schedule: Year of Principal Interest Stated Maturity Amount Rate(s) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 The Bonds shall bear interest on the unpaid principal amounts from the Bond Date at the rate(s) per annum shown above in this Section (calculated on the basis of a 360-day year of twelve 30-day months). Interest on the Bonds shall be payable on February 15 and August 15 in each year, commencing August 15, 2007. SECTION 3: Terms of Pavment-Paving AqenURepistrar. The principal of, premium, if any, and the interest on the Bonds, due and payable by reason of maturity, redemption or otherwise, shall be payable only to the registered owners or holders of the Bonds (hereinafter called the "Holders") appearing on the registration and transfer books maintained by the Paying AgenURegistrar and the payment thereof shall be in any coin or currency of the United States of America, which at the time of payment is legal tender for the payment of public and private debts, and shall be without exchange or collection charges to the Holders. The selection and appointment of The Bank of New York Trust Company, N.A., Dallas, Texas to serve as Paying Agent/Registrar for the Bonds is hereby approved and confirmed. Books and records relating to the registration, payment, transfer and exchange of the Bonds (the "Security Register") shall at all times be kept and maintained on behalf of the City by the Paying Agent/Registrar, as provided herein and in accordance with the terms and provisions of a "Paying Agent/ Registrar Agreement", substantially in the form attached hereto as Exhibit A, and such reasonable rules and regulations as the Paying Agent/Registrar and the City may prescribe. The Mayor and City Secretary are authorized to execute and deliver such Agreement in connection with the delivery of the Bonds. The Ciry covenants to maintain and provide a 45889459.1/10613025 Ordinance No. 2007-10 Generat Obligation Refunding Bonds, Series 2007 2 Paying Agent/Registrar at all times until the Bonds are paid and discharged, and any successor Paying AgenURegistrar shall be a commercial bank, trust company, financial institution or other entity qualified and authorized to serve in such capacity and perform the duties and services of Paying Agent/Registrar. Upon any change in the Paying Agent/Registrar for the Bonds, the City agrees to promptly cause a written notice thereof to be sent to each Holder by United States Mail, first class postage prepaid, which notice shall also give the address of the new Paying Agent/Registrar. Principal of and premium, if any, on the Bonds shall be payable at the Stated Maturities or the redemption thereof, only upon presentation and surrender of the Bonds to the Paying Agent/Registrar at its designated offices in Dallas, Texas (the "Designated Payment/Transfer Office"). Interest on the Bonds shall be paid to the Holders whose name appears in the Security Register at the close of business on the Record Date (the last business day of the month next preceding each interest payment date) and shall be paid by the Paying Agent/Registrar (i) by check sent United States Mail, first class postage prepaid, to the address of the Holder recorded in the Security Register or (ii) by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the Holder. If the date for the payment of the principal of or interest on the Bonds shall be a Saturday, Sunday, a legal holiday, or a day when banking institutions in the City where the Designated Payment/Transfer Office of the Paying Agent/Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day when banking institutions are authorized to close; and payment on such date shall have the same force and effect as if made on the original date payment was due. In the event of a nonpayment of interest on a scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest payment (a "Special Record Date") will be established by the Paying Agent/ Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (which shall be 15 days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States Mail, ~rst class postage prepaid, to the address of each Holder appearing on the Security Register at the close of business on the last business day next preceding the date of mailing of such notice. SECTION 4: Redemption. (a) Optional Redemption. The Bonds having Stated Maturities on and after February 15, 2018, shall be subject to redemption prior to maturity, at the option of the City, in whole or in part in principal amounts of $5,000 or any integral multiple thereof (and if within a Stated Maturity by lot by the Paying Agent/Registrar), on February 15, 2017 or on any date thereafter at the redemption price of par plus accrued interest to the date of redemption. (b) Exercise of Redemation Option. At least forty-five (45) days prior to a redemption date for the Bonds (unless a shorter notification period shall be satisfactory to the Paying Agent/Registrar), the City shall notify the Paying Agent/Registrar of the decision to redeem Bonds, the principal amount of each Stated Maturity to be redeemed, and the date of redemption therefor. The decision of the City to exercise the right to redeem Bonds shall be entered in the minutes of the governing body of the City. (c) Selection of Bonds for Redemqtion. If less than all Outstanding Bonds of the same Stated Maturity are to be redeemed on a redemption date, the Paying Agent/Registrar 45889459.1~10613025 Ordinance No. 2007-10 Generat Obligation Refunding Bonds, Series 2007 3 shall treat such Bonds as representing the number of Bonds Outstanding which is obtained by dividing the principal amount of such Bonds by $5,000 and shall select the Bonds, or principal amount thereof, to be redeemed within such Stated Maturity by lot. (d) Notice of Redemqtion. Not less than thirty (30) days prior to a redemption date for the Bonds, a notice of redemption shall be sent by United States Mail, first class postage prepaid, in the name of the City and at the City's expense, to each Holder of a Bond to be redeemed in whole or in part at the address of the Holder appearing on the Security Register at the close of business on the business day next preceding the date of mailing such notice, and any notice of redemption so mailed shall be conclusively presumed to have been duly given irrespective of whether received by the Holder. All notices of redemption shall (i) specify the date of redemption for the Bonds, (ii) identify the Bonds to be redeemed and, in the case of a portion of the principal amount to be redeemed, the principal amount thereof to be redeemed, (iii) state the redemption price, (iv) state that the Bonds, or the portion of the principal amount thereof to be redeemed, shall become due and payable on the redemption date specified, and the interest thereon, or on the portion of the principal amount thereof to be redeemed, shall cease to accrue from and after the redemption date, and (v) specify that payment of the redemption price for the Bonds, or the principal amount thereof to be redeemed, shall be made at the Designated Payment/Transfer Office of the Paying Agent/Registrar only upon presentation and surrender thereof by the Holder. If a Bond is subject by its terms to prior redemption, and has been called for redemption, and notice of redemption thereof has been duly given as hereinabove provided, such Bond (or the principal amount thereof to be redeemed) shall become due and payable and interest thereon shall cease to accrue from and after the redemption date therefor; provided moneys sufficient for the payment of such Bond (or of the principal amount thereof to be redeemed) at the then applicable redemption price are held for the purpose of such payment by the Paying Agent/Registrar. SECTION 5: Reqistration - Transfer - Exchancte of Bonds-Predecessor Bonds. The Paying Agent/Registrar shall obtain, record, and maintain in the Security Register the name and address of each and every owner of the Bonds issued under and pursuant to the provisions of this Ordinance, or if appropriate, the nominee thereof. Any Bond may be transferred or exchanged for Bonds of other authorized denominations by the Holder, in person or by his duly authorized agent, upon surrender of such Bond to the Paying Agent/Registrar for cancellation, accompanied by a written instrument of transfer or request for exchange duly executed by the Holder or by his duly authorized agent, in form satisfactory to the Paying Agent/Registrar. Upon surrender of any Bond (other than the Initial Bond(s) referenced in Section 8 hereofl for transfer at the Designated Payment/Transfer Office of the Paying AgenURegistrar, the Paying Agent/Registrar shall register and deliver, in the name of the designated transferee or transferees, one or more new Bonds of authorized denominations and having the same Stated Maturity and of a like aggregate principal amount as the Bond or Bonds surrendered for transfer. At the option of the Holder, Bonds (other than the Initial Bond(s) referenced in Section 8 hereofl may be exchanged for other Bonds of authorized denominations and having the same Stated Maturity, bearing the same rate of interest and of like aggregate principal amount as the Bonds surrendered for exchange, upon surrender of the Bonds to be exchanged at the Designated Payment/Transfer O~ce of the Paying Agent/Registrar. Whenever any Bonds are 45889459.1/10613025 Ordinance No. 2007-10 General Obligation Refunding Bonds, Series 2007 4 surrendered for exchange, the Paying AgenURegistrar shall register and deliver new Bonds to the Holder requesting the exchange. All Bonds issued in any transfer or exchange of Bonds shall be delivered to the Holders at the Designated Payment/Transfer Office of the Paying Agent/Regist~ar or sent by United States Mail, first class, postage prepaid to the Holders, and, upon the registration and delivery thereof, the same shall be the valid obligations of the City, evidencing the same obligation to pay, and entitled to the same benefits under this Ordinance, as the Bonds surrendered in such transfer or exchange. All transfers or exchanges of Bonds pursuant to this Section shall be made without expense or service charge to the Holder, except as otherwise herein provided, and except that the Paying AgenURegistrar shall require payment by the Holder requesting such transfer or exchange of any tax or other governmental charges required to be paid with respect to such transfer or exchange. Bonds cancelled by reason of an exchange or transfer pursuant to the provisions hereof are hereby defined to be "Predecessor Bonds," evidencing all or a portion, as the case may be, of the same obligation to pay evidenced by the new Bond or Bonds registered and delivered in the exchange or transfer therefor. Additionally, the term °Predecessor Bonds" shall include any mutilated, lost, destroyed, or stolen Bond for which a replacement Bond has been issued, registered, and delivered in lieu thereof pursuant to the provisions of Section 11 hereof and such new replacement Bond shall be deemed to evidence the same obligation as the mutilated, lost, destroyed, or stolen Bond. Neither the City nor the Paying Agent/Registrar shall be required to issue or transfer to an assignee of a Holder any Bond called for redemption, in whole or in part, within 45 days of the date fixed for the redemption of such Bond; provided, however, such limitation on transferability shall not be applicable to an exchange by the Holder of the unredeemed balance of a Bond called for redemption in part. SECTION 6: Book-Entrv Onlv Transfers and Transactions. Nofinrithstanding the provisions contained in Sections 3, 4 and 5 hereof relating to the payment, and transfer/exchange of the Bonds, the City hereby approves and authorizes the use of "Book-Entry Only" securities clearance, settlement and transfer system provided by The Depository Trust Company (DTC), a limited purpose trust company organized under the laws of the State of New York, in accordance with the operational arrangements referenced in the Blanket Issuer Letter of Representation, by and befinreen the City and DTC (the "Depository Agreement"). Pursuant to the Depository Agreement and the rules of DTC, the Bonds shall be deposited with DTC who shall hold said Bonds for its participants (the "DTC Participants"). While the Bonds are held by DTC under the Depository Agreement, the Holder of the Bonds on the Security Register for all purposes, including payment and notices, shall be Cede & Co., as nominee of DTC, notwithstanding the ownership of each actual purchaser or owner of each Bond (the "Beneficial Owners") being recorded in the records of DTC and DTC Participants. In the event DTC determines to discontinue serving as securities depository for the Bonds o~ otherwise ceases to provide book-entry clearance and settlement of securities transactions in general or the City determines that DTC is incapable of properly discharging its duties as securities depository for the Bonds, the City covenants and agrees with the Holders of 45889459.1/10613025 Ordinance No. 2007-10 General Obligation Refunding Bonds, Series 2007 5 the Bonds to cause Bonds to be printed in definitive form and provide for the Bond certificates to be issued and delivered to DTC Participants and Beneficial Owners, as the case may be. Thereafter, the Bonds in definitive form shall be assigned, transferred and exchanged on the Security Register maintained by the Paying Agent/Registrar and payment of such Bonds shall be made in accordance with the provisions of Sections 3, 4 and 5 hereof. SECTION 7: Execution - Reqistration. The Bonds shall be executed on behalf of the City by the Mayor under its seal reproduced or impressed thereon and countersigned by the City Secretary. The signature of said officers on the Bonds may be manual or facsimile. Bonds bearing the manual or facsimile signatures of individuals who are or were the proper officers of the City on the Bond Date shall be deemed to be duly executed on behalf of the City, notwithstanding that such individuals or either of them shall cease to hold such offices at the time of delivery of the Bonds to the initial purchaser(s) and with respect to Bonds delivered in subsequent exchanges and transfers, all as authorized and provided in V.T.C.A., Government Code, Chapter 1201, as amended. No Bond shall be entitled to any right or benefit under this Ordinance, or be valid or obligatory for any purpose, unless there appears on such Bond either a certificate of registration substantially in the form provided in Section 9(c), manually executed by the Comptroller of Public Accounts of the State of Texas, or his duly authorized agent, or a certificate of registration substantially in the form provided in Section 9(d), manually executed by an authorized officer, employee or representative of the Paying Agent/Registrar, and either such certificate duly signed upon any Bond shall be conclusive evidence, and the only evidence, that such Bond has been duly certified, registered, and delivered. SECTION 8: Initial Bond(s). The Bonds herein authorized shall be initially issued either (i) as a single fully registered bond in the aggregate principal amount of the Bonds with principal installments to become due and payable as provided in Section 2 hereof and numbered T-1, or (ii) as multiple fully registered bonds, being one bond for each year of maturity in the applicable principal amount and denomination and to be numbered consecutively from T-1 and upward (hereinafter called the "Initial Bond(s)") and, in either case, the Initial Bond(s) shall be registered in the name of the initial purchaser(s) or the designee thereof. The Initial Bond(s) shall be the Bonds submitted to the Office of the Attorney General of the State of Texas for approval, certified and registered by the Office of the Comptroller of Public Accounts of the State of Texas and delivered to the initial purchaser(s). Any time after the delivery of the Initial Bond(s), the Paying Agent/Registrar, pursuant to written instructions from the initial purchaser(s), or the designee thereof, shall cancel the Initial Bond(s) delivered hereunder and exchange therefor definitive Bonds of authorized denominations, Stated Maturities, principal amounts and bearing applicable interest rates for transfer and delivery to the Holders named at the addresses identified therefor; all pursuant to and in accordance with such written instructions from the initial purchaser(s), or the designee thereof, and such other information and documentation as the Paying AgenURegistrar may reasonably require. SECTION 9: Forms. (a) Forms Generallv. The Bonds, the Registration Certificate of the Comptroller of Public Accounts of the State of Texas, the Registration Certificate of Paying Agent/Registrar, and the form of Assignment to be printed on each of the Bonds, shall be substantially in the forms set forth in this Section with such appropriate insertions, omissions, substitutions, and other variations as are permitted or required by this Ordinance and may have such letters, numbers, or other marks of identification (including identifying numbers and letters of the 45889459.1/10613025 Ordinance No. 2007-10 General Obligation Refunding Bonds, Series 2007 6 Committee on Uniform Securities Identification Procedures of the American Bankers Association) and such legends and endorsements (including insurance legends in the event the Bonds, or any maturities thereof, are purchased with insurance and any reproduction of an opinion of counsel) thereon as may, consistently herewith, be established by the City or determined by the officers executing such Bonds as evidenced by their execution. Any portion of the text of any Bonds may be set forth on the reverse thereof, with an appropriate reference thereto on the face of the Bond. The definitive Bonds and the Initial Bond(s) shall be printed, lithographed, or engraved, typewritten, photocopied or otherwise reproduced in any other similar manner, all as determined by the officers executing such Bonds as evidenced by their execution thereof. (b) Form of Definitive Bond. REGISTERED REGISTERED NO. $ UNITED STATES OF AMERICA STATE OF TEXAS CITY OF WYLIE, TEXAS GENERAL OBLIGATION REFUNDING BOND, SERIES 2007 Bond Date: Interest Rate: Stated Maturity CUSIP NO: March 15, 2007 Registered Owner: Principal Amount: The City of Wylie (hereinafter referred to as the "City"), a body corporate and political subdivision in the County of Collin, State of Texas, for value received, acknowledges itself indebted to and hereby promises to pay to the Registered Owner named above, or the registered assigns thereof, on the Stated Maturity date specified above the Principal Amount hereinabove stated (or so much thereof as shall not have been paid upon prior redemption) and to pay interest on the unpaid principal amount hereof from the interest payment date next preceding the "Registration Date" of this Bond appearing below (unless this Bond bears a "Registration Date" as of an interest payment date, in which case it shall bear interest from such date, or unless the "Registration Date" of this Bond is prior to the initial interest payment date in which case it shall bear interest from the Bond Date) at the per annum rate of interest specified above computed on the basis of a 360 day year of twelve 30 day months; such interest being payable on February 15 and August 15 in each year, commencing August 15, 2007. Principal of this Bond is payable at its Stated Maturity or redemption to the registered owner hereof, upon presentation and surrender, at the Designated Payment/Transfer Office of the Paying Agent/Registrar executing the registration certificate appearing hereon, or its successor. Interest is payable to the registered owner of this Bond (or one or more Predecessor Bonds, as defined in the Ordinance hereinafter referenced) whose name appears on the "Security Register" maintained by the Paying AgenURegistrar at the close of business on the "Record Date", which is the last business day of the month next preceding each interest payment date, and interest shall be paid by the Paying Agent/Registrar by check sent United States Mail, first class postage prepaid, to the address of the registered owner recorded in the Security Register 45889459.1/10613025 Ordinance No. 2007-10 General Obligation Refunding Bonds, Series 2007 7 or by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the registered owner. If the date for the payment of the principal of or interest on the Bonds shall be a Saturday, Sunday, a legal holiday, or a day when banking institutions in the city where the Designated Payment/Transfer Office of the Paying AgenURegistrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day when banking institutions are authorized to close; and payment on such date shall have the same force and effect as if made on the original date payment was due. All payments of principal of, premium, if any, and interest on this Bond shall be without exchange or collection charges to the owner hereof and in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. This Bond is one of the series specified in its title issued in the aggregate principal amount of $4,815,000.00 (herein referred to as the "Bonds") for the purpose of providing funds for the discharge and final payment of certain outstanding obligations of the City (identified in the preamble hereof and referred to as the "Refunded Obligations") and to pay costs of issuance, under and in strict conformity with the Constitution and laws of the State of Texas and pursuant to an Ordinance adopted by the City Council of the City (herein referred to as the "Ordinance"). The Bonds maturing on and after February 15, 2018, may be redeemed prior to their Stated Maturities, at the option of the City, in whole or in part in principal amounts of $5,000 or any integral multiple thereof (and if within a Stated Maturity by lot by the Paying Agent/Registrar), on February 15, 2017, or on any date thereafter, at the redemption price of par, together with accrued interest to the date of redemption. At least thirty days prior to the date fixed for any redemption of Bonds, the City shall cause a written notice of such redemption to be sent by United States Mail, first class postage prepaid, to the registered owners of each Bond to be redeemed at the address shown on the Security Register and subject to the terms and provisions relating thereto contained in the Ordinance. If a Bond (or any portion of its principal sum) shall have been duly called for redemption and notice of such redemption duly given, then upon such redemption date such Bond (or the portion of its principal sum to be redeemed) shall become due and payable, and interest thereon shall cease to accrue from and after the redemption date therefor; provided moneys for the payment of the redemption price and the interest on the principal amount to be redeemed to the date of redemption are held for the purpose of such payment by the Paying Agent/Registrar. In the event a portion of the principal amount of a Bond is to be redeemed and the registered owner is someone other than Cede & Co., payment of the redemption price of such principal amount shall be made to the registered owner only upon presentation and surrender of such Bond to the Designated Payment/Transfer Office of the Paying Agent/Registrar, and a new Bond or Bonds of like maturity and interest rate in any authorized denominations provided by the Ordinance for the then unredeemed balance of the principal sum thereof will be issued to the registered owner, without charge. If a Bond is selected for redemption, in whole or in part, the City and the Paying Agent/Registrar shall not be required to transfer such Bond to an assignee of the registered owner within 45 days of the redemption date therefor; provided, however, such limitation on transferability shall not be applicable to an exchange by the registered owner of the unredeemed balance of a Bond redeemed in part. 45889459.1/10613025 Ordinance No. 2007-10 General Obligation Refunding Bonds, Series 2007 8 The Bonds are payable from the proceeds of an ad valorem tax levied, within the limitations presc~ibed by law, upon all taxable property in the City. Reference is hereby made to the Ordinance, a copy of which is on file in the Designated Payment/Transfer Office of the Paying Agent/Registrar, and to all of the provisions of which the owner or holder of this Bond by the acceptance hereof hereby assents, for definitions of terms; the description of and the nature and extent of the tax levied for the payment of the Bonds; the terms and conditions relating to the transfer or exchange of this Bond; the conditions upon which the Ordinance may be amended or supplemented with or without the consent of the Holders; the rights, duties, and obligations of the City and the Paying Agent/Registrar; the terms and provisions upon which this Bond may be discharged at or prior to its maturity or redemption, and deemed to be no longer Outstanding thereunder; and for other terms and provisions contained therein. Capitalized terms used herein have the meanings assigned in the Ordinance. This Bond, subject to certain limitations contained in the Ordinance, may be transferred on the Security Register only upon its presentation and surrender at the Designated Payment/Transfer Office of the Paying Agent/Registrar, with the Assignment hereon duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Paying Agent/Registrar duly executed by, the registered owner hereof, or his duly authorized agent. When a transfer on the Security Register occurs, one or more new fully registered Bonds of the same Stated Maturity, of authorized denominations, bearing the same rate of interest, and of the same aggregate principal amount will be issued by the Paying Agent/Registrar to the designated transferee or transferees. The City and the Paying Agent/Registrar, and any agent of either, shall treat the registered owner whose name appears on the Security Register (i) on the Record Date as the owner entitled to payment of interest hereon, (ii) on the date of surrender of this Bond as the owner entitled to payment of principal hereof at its Stated Maturity or its redemption, in whole or in part, and (iii) on any other date as the owner for all other purposes, and neither the City nor the Paying Agent/Registrar, or any agent of either, shall be affected by notice to the contrary. In the event of nonpayment of interest on a scheduled payment date and for thirty (30) days thereafter, a new record date for such interest payment (a °Special Record Date") will be established by the Paying AgenURegistrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (which shall be 15 days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States Mail, first class postage prepaid, to the address of each Holder appearing on the Security Register at the close of business on the last business day next preceding the date of mailing of such notice. It is hereby certified, recited, represented and declared that the City is a body corporate and political subdivision duly organized and legally existing under and by virtue of the Constitution and laws of the State of Texas; that the issuance of the Bonds is duly authorized by law; that all acts, conditions and things required to exist and be done precedent to and in the issuance of the Bonds to render the same lawful and valid obligations of the City have been properly done, have happened and have been performed in regular and due time, form and manner as required by the Constitution and laws of the State of Texas, and the Ordinance; that the Bonds do not exceed any Constitutional or statutory limitation; and that due provision has been made for the payment of the principal of and interest on the Bonds by the levy of a tax as aforestated. In case any provision in this Bond shall be invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected 45889459.1/10613025 Ordinance No. 2007-10 General Obligation Refunding Bonds, Series 2007 9 or impaired thereby. The terms and provisions of this Bond and the Ordinance shall be construed in accordance with and shall be governed by the laws of the State of Texas. IN WITNESS WHEREOF, the City Council of the City has caused this Bond to be duly executed under the official seal of the City as of the Bond Date. CITY OF WYLIE, TEXAS Mayor COUNTERSIGNED: City Secretary (SEAL) (c) Form of Reqistration Certificate of Comptroller of Public Accounts to aqpear on Initial Bond(s) onlv. REGISTRATION CERTIFICATE OF COMPTROLLER OF PUBLIC ACCOUNTS OFFICE OF THE COMPTROLLER ) ) OF PUBLIC ACCOUNTS ) REGISTER NO. ) THE STATE OF TEXAS ) I HEREBY CERTIFY that this Bond has been examined, certified as to validity and approved by the Attorney General of the State of Texas, and duly registered by the Comptroller of Public Accounts of the State of Texas. WITNESS my signature and seal of office this Comptroller of Public Accounts of the State of Texas (SEAL) 45889459.1/10613025 Ordinance No. 2007-10 General Obligation Refunding Bonds, Series 2007 10 (d) Form of Certificate of Pavinq Aqent/Reqistrar to appear on Definitive Bonds onlv. REGISTRATION CERTIFICATE OF PAYING AGENT/REGISTRAR This Bond has been duly issued and registered under the provisions of the within-mentioned Ordinance; the bond or bonds of the above entitled and designated series originally delivered having been approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts, as shown by the records of the Paying AgenURegistrar. The designated offices of the Paying Agent/Registrar in Dallas, Texas is the "Designated Payment/Transfer Office" for this Bond. THE BANK OF NEW YORK TRUST COMPANY, N.A., Dallas, Texas, as Paying Agent/Registrar Registration date: By Authorized Signature (e) Form of Assiqnment. ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sells, assigns, and transfers unto (Print or typewrite name, address, and zip code of transferee): (Social Security or other identifying number ) the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to transfer the within Bond on the books kept for registration thereof, with full power of substitution in the premises. DATED: NOTICE: The signature on this assignment must correspond with the Signature guaranteed: name of the registered owner as it appears on the face of the within Bond in every particular. 45889459.1/10613025 Ordinance No. 2007-10 General Obligation Refunding Bonds, Series 2007 11 (f) The Initial Bond(s) shall be in the form set forth in paraqraph (b) of this Section. except that the form of the sinqle fullv registered Initial Bond shall be modified as follows: REGISTERED REGISTERED NO. T-1 $ UNITED STATES OF AMERICA STATE OF TEXAS CITY OF WYLIE, TEXAS GENERAL OBLIGATION REFUNDING BOND, SERIES 2007 Bond Date: March 15, 2007 Registered Owner: Principal Amount: The City of Wylie (hereinafter referred to as the "City"), a body corporate and municipal corporation in the County of Collin, State of Texas, for value received, acknowledges itself indebted to and hereby promises to pay to the Registered Owner named above, or the registered assigns thereof, the Principal Amount hereinabove stated on February 15 in each of the years and in principal installments in accordance with the following schedule: STATED PRINCIPAL INTEREST MATURITY INSTALLMENTS RATE (Information to be inserted from schedule in Section 2 hereo~. (or so much principal thereof as shall not have been prepaid prior to maturity) and to pay interest on the unpaid principal installments hereof from the interest payment date next preceding the "Registration Date" of this Bond appearing below (unless this Bond bears a "Registration Date" as of an interest payment date, in which case it shall bear interest from such date, or unless the "Registration Date" of this Bond is prior to the initial interest payment date in which case it shall bear interest from the Bond Date) at the per annum rates of interest specified above computed on the basis of a 360 day year of twelve 30 day months; such interest being payable on February 15 and August 15 in each year, commencing August 15, 2007. Principal installments of this Bond are payable on the Stated Maturity dates or on a prepayment date to the registered owner hereof by The Bank of New York Trust Company, N.A., Dallas, Texas (the "Paying Agent/Registrar"), upon its presentation and surrender, at its designated offices in Dallas, Texas (the "Designated Payment/Transfer Office"). Interest is payable to the registered owner of this Bond whose name appears on the "Security Register" maintained by the Paying AgenURegistrar at the close of business on the "Record Date", which is the last business day of the month next preceding each interest payment date, and interest shall be paid by the Paying AgenURegistrar by check sent United States Mail, first class postage prepaid, to the address of the registered owner recorded in the Security Register or by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the registered owner. If the date for the payment of the principal of or interest on the Bonds shall be a Saturday, Sunday, a legal holiday, or a day when banking institutions in the City where the Designated Payment/Transfer Office of the Paying AgenURegistrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day when banking institutions are authorized to 45889459.1/10613025 Ordinance No. 2007-10 General Obligation Refunding Bonds, Series 2007 12 close; and payment on such date shall have the same force and effect as if made on the original date payment was due. All payments of principal of, premium, if any, and interest on this Bond shall be without exchange or collection charges to the owner hereof and in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. SECTION 10: Levv of Taxes. To provide for the payment of the "Debt Service Requirements" of the Bonds, being (i) the interest on the Bonds and (ii) a sinking fund for their payment at maturity or redemption or a sinking fund of 2% (whichever amount is the greater), there is hereby levied, and there shall be annually assessed and collected in due time, form, and manner, a tax on all taxable property in the City, within the limitations prescribed by law, and such tax hereby levied on each one hundred dollars' valuation of taxable property in the City for the Debt Service Requirements of the Bonds shall be at a rate from year to year as will be ample and sufficient to provide funds each year to pay the principal of and interest on said Bonds while Outstanding; full allowance being made for delinquencies and costs of collection; separate books and records relating to the receipt and disbursement of taxes levied, assessed and collected for and on account of the Bonds shall be kept and maintained by the City at all times while the Bonds are Outstanding, and the taxes collected for the payment of the Debt Service Requirements on the Bonds shall be deposited to the credit of a"Special 2007 Bond Account" (the "Interest and Sinking Fund") maintained on the records of the City and deposited in a special fund maintained at an official depository of the City's funds; and such tax hereby levied, and to be assessed and collected annually, is hereby pledged to the payment of the Bonds. The Mayor, Mayor Pro Tem, City Manager, Finance Director and City Secretary of the City, individually or jointly, are hereby authorized and directed to cause to be transferred to the Paying Agent/ Registrar for the Bonds, from funds on deposit in the Interest and Sinking Fund, amounts sufficient to fully pay and discharge promptly each installment of interest and principal of the Bonds as the same accrues or matures or comes due by reason of redemption prior to maturity; such transfers of funds to be made in such manner as will cause collected funds to be deposited with the Paying Agent/Registrar on or before each principal and interest payment date for the Bonds. PROVIDED, however, in regard to the payments to become due on the Bonds on August 15, 2007, sufficient current funds will be available and are hereby appropriated to make such payments; and proper officials of the City are hereby authorized and directed to transfer and deposit in the Interest and Sinking Fund such current funds which, together with the accrued interest received from the initial purchasers, will be sufficient to pay the payments on the Bonds on August 15, 2007. SECTION 11: Mutilated-Destroved-Lost and Stolen Bonds. In case any Bond shall be mutilated, or destroyed, lost or stolen, the Paying Agent/Registrar may execute and deliver a replacement Bond of like form and tenor, and in the same denomination and bearing a number not contemporaneously outstanding, in exchange and substitution for such mutilated Bond, or in lieu of and in substitution for such destroyed, lost or stolen Bond, only upon the approval of the City and after (i) the filing by the Holder thereof with the Paying Agent/Registrar of evidence satisfactory to the Paying AgenbRegistrar of the destruction, loss or theft of such Bond, and of the authenticiry of the ownership thereof and (ii) the furnishing to the Paying Agent/Registrar of indemnification in an amount satisfactory to hold the City and the Paying Agent/Registrar harmless. All expenses and charges associated with such indemnity and with the preparation, 45889459.1/10613025 Ordinance No. 2007-10 Generat Obligation Refunding Bonds, Series 2007 13 execution and delivery of a replacement Bond shall be borne by the Holder of the Bond mutilated, or destroyed, lost or stolen. Every replacement Bond issued pursuant to this Section shall be a valid and binding obligation, and shall be entitled to all the benefits of this Ordinance equally and ratably with all other Outstanding Bonds; notwithstanding the enforceability of payment by anyone of the destroyed, lost, or stolen Bonds. The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement and payment of mutilated, destroyed, lost or stolen Bonds. SECTION 12: Satisfaction of Obliqation of Citv. If the City shall pay or cause to be paid, or there shall otherwise be paid to the Holders, the principal of, premium, if any, and interest on the Bonds, at the times and in the manner stipulated in this Ordinance, then the pledge of taxes levied under this Ordinance and all covenants, agreements, and other obligations of the City to the Holders shall thereupon cease, terminate, and be discharged and satisfied. Bonds or any principal amount(s) thereof shall be deemed to have been paid within the meaning and with the effect expressed above in this Section when (i) money sufficient to pay in full such Bonds or the principal amount(s) thereof at maturity or to the redemption date therefor, together with all interest due thereon, shall have been irrevocably deposited with and held in trust by the Paying Agent/Registrar, or an authorized escrow agent, or (ii) Government Securities shall have been irrevocably deposited in trust with the Paying Agent/Registrar, or an authorized escrow agent, which Government Securities have been certified by an independent accounting firm to mature as to principal and interest in such amounts and at such times as will insure the availability, without reinvestment, of sufficient money, together with any moneys deposited therewith, if any, to pay when due the principal of and interest on such Bonds, or the principal amount(s) thereof, on and prior to the Stated Maturity thereof or (if notice of redemption has been duly given or waived or if irrevocable arrangements therefor acceptable to the Paying Agent/Registrar have been made) the redemption date thereof. The City covenants that no deposit of moneys or Government Securities will be made under this Section and no use made of any such deposit which would cause the Bonds to be treated as "arbitrage bonds" within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended, or regulations adopted pursuant thereto. Any moneys so deposited with the Paying Agent/ Registrar, or an authorized escrow agent, and all income from Government Securities held in trust by the Paying Agent/Registrar, or an authorized escrow agent, pursuant to this Section which is not required for the payment of the Bonds, or any principal amount(s) thereof, or interest thereon with respect to which such moneys have been so deposited shall be remitted to the City or deposited as directed by the City. Furthermore, any money held by the Paying Agent/Registrar for the payment of the principal of and interest on the Bonds and remaining unclaimed for a period of three (3) years after the Stated Maturity, or applicable redemption date, of the Bonds such moneys were deposited and are held in trust to pay shall upon the request of the City be remitted to the City against a written receipt therefor. Notwithstanding the above and foregoing, any remittance of funds from the Paying AgenURegistrar to the City shall be subject to any applicable unclaimed property laws of the State of Texas. 45889459.1/10613025 O~dinance No. 2007-10 Generat Obligation Refunding Bonds, Series 2007 14 The term "Government Securities" shall mean (i) direct noncallable obligations of the United States of America, including obligations the principal of and interest on which are unconditionally guaranteed by the United States of America, (ii) noncallable obligations of an agency or instrumentality of the United States, including obligations unconditionally guaranteed or insured by the agency or instrumentality and on the date of their acquisition or purchase by the City are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent and (iii) noncallable obligations of a state or an agency or a county, municipality, or other political subdivision of a state that have been refunded and on the date of their acquisition or purchase by the City, are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent. SECTION 13: Ordinance a Contract - Amendments - Outstandinq Bonds. This Ordinance shall constitute a contract with the Holders from time to time, be binding on the City, and shall not be amended or repealed by the City so long as any Bond remains Outstanding except as permitted in this Section and in Section 29 hereof. The City may, without the consent of or notice to any Holders, from time to time and at any time, amend this Ordinance in any manner not detrimental to the interests of the Holders, including the curing of any ambiguity, inconsistency, or formal defect or omission herein. In addition, the City may, with the consent of Holders holding a majority in aggregate principal amount of the Bonds then Outstanding, amend, add to, or rescind any of the provisions of this Ordinance; provided that, without the consent of all Holders of Outstanding Bonds, no such amendment, addition, or rescission shall (1) extend the time or times of payment of the principal of, premium, if any, and interest on the Bonds, reduce the principal amount thereof, the redemption price therefor, or the rate of interest thereon, or in any other way modify the terms of payment of the principal of, premium, if any, or interest on the Bonds, (2) give any preference to any Bond over any other Bond, or (3) reduce the aggregate principal amount of Bonds required to be held by Holders for consent to any such amendment, addition, or rescission. The term "Outstanding" when used in this Ordinance with respect to Bonds means, as of the date of determination, all Bonds theretofore issued and delivered under this Ordinance, except: (1) those Bonds cancelled by the Paying Agent/Registrar or delivered to the Paying Agent/Registrar for cancellation; (2) those Bonds deemed to be duly paid by the City in accordance with the provisions of Section 12 hereof; and (3) those mutilated, destroyed, lost, or stolen Bonds which have been replaced with Bonds registered and delivered in lieu thereof as provided in Section 11 hereof. SECTION 14: Covenants to Maintain Tax-Exempt Status. (a) Definitions. When used in this Section 14, the following terms have the following meanings: "Closing Date" means the date on which the Bonds are first authenticated and delivered to the initial purchasers against payment therefor. 45889459.1 /10613025 Ordinance No. 2007-10 General Obligation Refunding Bonds, Series 2007 15 "Code" means the Internal Revenue Code of 1986, as amended by all legislation, if any, effective on or before the Closing Date. "Computation Date" has the meaning set forth in Section 1.148-1(b) of the Regulations. "Gross Proceeds" means any proceeds as defined in Section 1.148-1(b) of the Regulations, and any replacement proceeds as defined in Section 1.148-1(c) of the Regulations, of the Bonds. "InvestmenY' has the meaning set forth in Section 1.148-1(b) of the Regulations. "Nonpurpose Investment" means any investment property, as defined in section 148(b) of the Code, in which Gross Proceeds of the Bonds are invested and which is not acquired to carry out the governmental purposes of the Bonds. "Rebate Amount" has the meaning set forth in Section 1.148-1(b) of the Regulations. "Regulations" means any proposed, temporary, or final Income Tax Regulations issued pursuant to Sections 103 and 141 through 150 of the Code, and 103 of the Internal Revenue Code of 1954, which are applicable to the Bonds. Any reference to any specific Regulation shall also mean, as appropriate, any proposed, temporary or final Income Tax Regulation designed to supplement, amend or replace the specific Regulation referenced. "Yield" of (1) any Investment has the meaning set forth in Section 1.148- 5 of the Regulations and (2) the Bonds has the meaning set forth in Section 1.148-4 of the Regulations. (b) Not to Cause Interest to Become Taxable. The City shall not use, permit the use of, or omit to use Gross Proceeds or any other amounts (or any property the acquisition, construction or improvement of which is to be financed directly or indirectly with Gross Proceeds) in a manner which if made or omitted, respectively, would cause the interest on any Bond to become includable in the gross income, as defined in section 61 of the Code, of the owner thereof for federal income tax purposes. Without limiting the generality of the foregoing, unless and until the City receives a written opinion of counsel nationally recognized in the field of municipal bond law to the effect that failure to comply with such covenant will not adversely affect the exemption from federal income tax of the interest on any Bond, the City shall comply with each of the specific covenants in this Section. (c) No Private Use or Private Pavments. Except as permitted by section 141 of the Code and the Regulations and rulings thereunder, the City shall at all times prior to the last Stated Maturity of Bonds: (1) exclusively own, operate and possess all property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with Gross Proceeds of the Bonds (including property financed with Gross Proceeds of the Refunded Obligations), and not use or permit the use of such Gross Proceeds (including all contractual arrangements with terms different 45889459.1/10613025 Ordinance No. 2007-10 General Obligation Refunding Bonds, Series 2007 16 than those applicable to the general public) or any property acquired, constructed or improved with such Gross Proceeds in any activity carried on by any person or entity (including the United States or any agency, department and instrumentality thereofl other than a state or local government, unless such use is solely as a member of the general public; and (2) not directly or indi~ectly impose or accept any charge or other payment by any person or entity who is treated as using Gross Proceeds of the Bonds or any property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with such Gross Proceeds (including property financed with Gross Proceeds of the Refunded Obligations), other than taxes of general application within the City or interest earned on investments acquired with such Gross Proceeds pending application for their intended purposes. (d) No Private Loan. Except to the extent permitted by section 141 of the Code and the Regulations and rulings thereunder, the City shall not use Gross Proceeds of the Bonds to make or finance loans to any person or entity other than a state or local government. For purposes of the foregoing covenant, such Gross Proceeds are considered to be °loaned" to a person or entity if: (1) property acquired, constructed or improved with such Gross Proceeds is sold or leased to such person or entity in a transaction which creates a debt for federal income tax purposes; (2) capacity in or service from such property is committed to such person or entity under a take-or-pay, output or similar contract or arrangement; or (3) indirect benefits, or burdens and benefits of ownership, of such Gross Proceeds or any property acquired, constructed or improved with such Gross Proceeds are otherwise transferred in a transaction which is the economic equivalent of a loan. (e) Not to Invest at Hipher Yield. Except to the extent permitted by section 148 of the Code and the Regulations and rulings thereunder, the City shall not at any time prior to the final Stated Maturity of the Bonds directly or indirectly invest Gross Proceeds in any Investment (or use Gross Proceeds to replace money so invested), if as a result of such investment the Yield from the Closing Date of all Investments acquired with Gross Proceeds (or with money replaced thereby), whether then held or previously disposed of, exceeds the Yield of the Bonds. (f) Not Federallv Guaranteed. Except to the extent permitted by section 149(b) of the Code and the Regulations and rulings thereunder, the City shall not take or omit to take any action which would cause the Bonds to be federally guaranteed within the meaning of section 149(b) of the Code and the Regulations and rulings thereunder. (g) Information Report. The City shall timely file the information required by section 149(e) of the Code with the Secretary of the Treasury on Form 8038-G or such other form and in such place as the Secretary may prescribe. (h) Rebate of Arbitrage Profits. Except to the extent otherwise provided in section 148(f) of the Code and the Regulations and rulings thereunder: (1) The City shall account for all Gross Proceeds (including all receipts, expenditures and investments thereof) on its books of account separately and apart from all other funds (and receipts, expenditures and investments thereof) and shall retain all records of accounting for at least six years after the day on which the last Outstanding Bond is discharged. However, 45889459.1/10613025 Ordinance No. 2007-10 General Obligation Refunding Bonds, Series 2007 17 to the extent permitted by law, the City may commingle Gross Proceeds of the Bonds with other money of the City, provided that the City separately accounts for each receipt and expenditure of Gross Proceeds and the obligations acquired therewith. (2) Not less frequently than each Computation Date, the City shall calculate the Rebate Amount in accordance with rules set forth in section 148(f) of the Code and the Regulations and rulings thereunder. The City shall maintain such calculations with its official transcript of proceedings relating to the issuance of the Bonds until six years after the final Computation Date. (3) As additional consideration for the purchase of the Bonds by the Purchasers and the loan of the money represented thereby and in order to induce such purchase by measures designed to insure the excludability of the interest thereon from the gross income of the owners thereof for federal income tax purposes, the City shall pay to the United States out of the Interest and Sinking Fund or its general fund, as permitted by applicable Texas statute, regulation or opinion of the Attorney General of the State of Texas, the amount that when added to the future value of previous rebate payments made for the Bonds equals (i) in the case of a Final Computation Date as defined in Section 1.148-3(e)(2) of the Regulations, one hundred percent (100%) of the Rebate Amount on such date; and (ii) in the case of any other Computation Date, ninety percent (90%) of the Rebate Amount on such date. In all cases, the rebate payments shall be made at the times, in the installments, to the place and in the manner as is or may be required by section 148(f) of the Code and the Regulations and rulings thereunder, and shall be accompanied by Form 8038-T or such other forms and information as is or may be required by Section 148(fl of the Code and the Regulations and rulings thereunder. (4) The City shall exercise reasonable diligence to assure that no errors are made in the calculations and payments required by paragraphs (2) and (3), and if an error is made, to discover and promptly correct such error within a reasonable amount of time thereafter (and in all events within one hundred eighty (180) days after discovery of the error), including payment to the United States of any additional Rebate Amount owed to it, interest thereon, and any penalty imposed under Section 1.148 3(h) of the Regulations. (i) Not to Divert Arbitrape Profits. Except to the extent permitted by section 148 of the Code and the Regulations and rulings thereunder, the City shall not, at any time prior to the earlier of the Stated Maturity or final payment of the Bonds, enter into any transaction that reduces the amount required to be paid to the United States pursuant to Subsection (h) of this Section because such transaction results in a smaller profit or a larger loss than would have resulted if the transaction had been at arm's length and had the Yield of the Bonds not been relevant to either party. (j) Elections. The City hereby directs and authorizes the Mayor, Mayor Pro Tem City Manager, Finance Director and City Secretary, individually or jointly, to make elections permitted or required pursuant to the provisions of the Code or the Regulations, as they deem necessary or appropriate in connection with the Bonds, in the Certificate as to Tax Exemption or similar or other appropriate certificate, form or document. 45889459.1/10613025 Ordinance No. 2007-10 General Obligation Refunding Bonds, Series 2007 18 (k) Bonds Not Hedqe Bonds. (1) At the time the original bonds refunded by the Bonds were issued, the City reasonably expected to spend at least 85% of the spendable proceeds of such bonds within three years after such bonds were issued and (2) not more than 50% of the proceeds of the original bonds refunded by the Bonds were invested in Nonpurpose Investments having a substantially guaranteed Yield for a period of 4 years or more. (I) Current Refundinq of Series 1997 Refunded Bonds. The Bonds are a current refunding of the Series 1997 Refunded Bonds in that the Bonds will be issued less than 90 days before the redemption of the Series 1997 Refunded Bonds. (m) Qualified Advance Refundinq of Series 1999 and Series 2000 Refunded Bonds. With respect to the Series 1999 Refunded Bonds and the Series 2000 Refunded Bonds (the "Advance Refunded Obligations"), the Bonds will be issued more than 90 days before the redemption of the such Advance Refunded Obligations. The City represents as follows: (1) The Bonds are the first advance refunding of the Advance Refunded Obligations, within the meaning of section 149(d)(3) of the Code. (2) The Advance Refunded Obligations are being called for redemption, and will be redeemed not later than the earliest date on which such bonds may be redeemed. (3) The initial temporary period under section 148(c) of the Code will end: (i) with respect to the proceeds of the Bonds not later than 30 days after the date of issue of such Bonds; and (ii) with respect to proceeds of the Advance Refunded Obligations on the Closing Date if not ended prior thereto. (4) On and after the date of issue of the Bonds, no proceeds of the Advance Refunded Obligations will be invested in Nonpurpose Investments having a Yield in excess of the Yield on such respective series of refunded obligations. (5) The Bonds are being issued for the purposes stated in the preamble of this Ordinance. There is a present value savings associated with the refunding. In the issuance of the Bonds the City has neither: (i) overburdened the tax-exempt bond market by issuing more bonds, issuing bonds earlier or allowing bonds to remain outstanding longer than reasonably necessary to accomplish the governmental purposes for which the Bonds were issued; (ii) employed on °abusive arbitrage device" within the meaning of Section 1.148-10(a) of the Regulations; nor (iii) employed a"device" to obtain a material financial advantage based on arbitrage, within the meaning of section 149(d)(4) of the Code, apart from savings attributable to lower interest rates and reduced debt service payments in early years. SECTION 15: Sale of Bonds - Official Statement Apqroval. The Bonds authorized by this Ordinance are hereby sold by the City to Citigroup Global Markets, Inc. and Morgan Keegan & Company, Inc. (herein referred to as the "Underwriters") in accordance with the Bond Purchase Agreement, dated March 27, 2007, attached hereto as Exhibit B and incorporated herein by reference as a part of this Ordinance for all purposes. The Mayor is hereby authorized and directed to execute said Bond Purchase Agreement for and on behalf of the City and as the act and deed of tnis City Council, and in regard to the approval and execution of the 45889459.1~10613025 Ordinance No. 2007-10 General Obligation Refunding Bonds, Series 2007 19 Bond Purchase Agreement, the City Council hereby finds, determines and declares that the representations, warranties and agreements of the City contained in the Bond Purchase Agreement are true and correct in all material respects and shall be honored and performed by the City. Furthermore, the use of the Preliminary Official Statement by the Underwriters in connection with the public offering and sale of the Bonds is hereby ratified, confirmed and approved in all respects. The final Official Statement, which reflects the terms of sale (together with such changes approved by the Mayor, City Secretary, City Manager, and Finance Director, one or more of said officials), shall be and is hereby in all respects approved and the Underwriters are hereby authorized to use and distribute said final Official Statement, dated March 27, 2007, in the reoffering, sale and delivery of the Bonds to the public. The Mayor and City Secretary are further authorized and directed to manually execute and deliver for and on behalf of the City copies of said Official Statement in final form as may be required by the Underwriters, and such final Official Statement in the form and content manually executed by said officials shall be deemed to be approved by the City Council and constitute the Official Statement authorized for distribution and use by the Underwriters. SECTION 16: Special Escrow Aqreement Approval and Execution. The "Special Escrow Agreement" (the "Agreement") by and between the City and The Bank of New York Trust Company, N.A., Dallas, Texas (the "Escrow Agent"), attached hereto as Exhibit C and incorporated herein by reference as a part of this Ordinance for all purposes, is hereby approved as to form and content, and such Agreement in substantially the form and substance attached hereto, together with such changes or revisions as may be necessary to accomplish the refunding or bene~t the City, is hereby authorized to be executed by the Mayor and City Secretary for and on behalf of the City and as the act and deed of this City Council; and such Agreement as executed by said officials shall be deemed approved by the City Council and constitute the Agreement herein approved. Furthermore, appropriate officials of the City in cooperation with the Escrow Agent are hereby authorized and directed to make the necessary arrangements for the purchase of the escrowed securities referenced in the Agreement and the delivery thereof to the Escrow Agent on the day of delivery of the Bonds to the Underwriters for deposit to the credit of the "SPECIAL 2007 CITY OF WYLIE, TEXAS, REFUNDING BOND ESCROW FUND" (the "Escrow Fund"); all as contemplated and provided in V.T.C.A., Government Code, Chapter 1207, as amended, this Ordinance and the Agreement. SECTION 17: Control and Custodv of Bonds. The Mayor of the City shall be and is hereby authorized to take and have cha~ge of all necessary orders and records pending investigation by the Attorney General of the State of Texas, including the printing and supply of definitive Bonds, and shall take and have charge and control of the Initial Bond(s) pending the approval thereof by the Attorney General, the registration thereof by the Comptroller of Public Accounts and the delivery thereof to the Underwriters. Furthermore, the Mayor, Mayor Pro Tem, City Secretary, City Manager, and Finance Director, any one or more of said o~cials, are hereby authorized and directed to furnish and execute such documents and certifications relating to the City and the issuance of the Bonds, including certifications as to facts, estimates, circumstances and reasonable expectations pertaining to the use, expenditure, and investment of the proceeds of the Bonds, as may be necessary for the approval of the Attorney General, the registration by the Comptroller of Public Accounts and the delivery of the Bonds to the Underwriters, and, together with the City's 45889459.1/10613025 Ordinance No. 2007-10 General Obligation Refunding Bonds, Series 2007 20 financial advisor, bond counsel and the Paying Agent/Registrar, make the necessary arrangements for the delivery of the Initial Bond(s) to the Underwriters and the initial exchange thereof for definitive Bonds. SECTION 18: Proceeds of Sale. Immediately following the delivery of the Bonds, proceeds of sale in the sum of (i) $4,729,632.27 shall be deposited to the credit of the Escrow Fund and (ii) $25,169.48 shall be deposited to the credit of the Interest and Sinking Fund. The balance of the proceeds of sale of the Bonds shall be expended to pay costs of issuance and municipal bond insurance premium and any excess amount budgeted for such purpose shall be deposited to the credit of the Interest and Sinking Fund. SECTION 19: Redemption of Refunded Obliqations. (a) The bonds of that series known as "City of Wylie, Texas, General Obligation Bonds, Series 1997", dated January 1, 1997, maturing in the years 2008 through 2014 and 2017, and aggregating in principal amount $1,790,000, shall be redeemed and the same are hereby called for redemption on June 1, 2007, at the price of par and accrued interest to the date of redemption. The City Secretary is hereby authorized and directed to file a copy of this Ordinance, together with a suggested form of notice of redemption to be sent to bondholders, with The Bank of New York Trust Company, N.A., Dallas, Texas (successor paying agenUregistrar to Texas Commerce Bank, National Association), in accordance with the redemption provisions applicable to such bonds; such suggested form of notice of redemption being attached hereto as Exhibit D and incorporated herein by reference as a part of this Ordinance for all purposes. (b) The bonds of that series known as °Ciry of Wylie, Texas, General Obligation Bonds, Series 1999", dated September 1, 1999, maturing in the years 2011 through 2019, and aggregating in principal amount $1,870,000, shall be redeemed and the same are hereby called for redemption on February 15, 2009, at the price of par and accrued interest to the date of redemption. The City Secretary is hereby authorized and directed to file a copy of this Ordinance, together with a suggested form of notice of redemption to be sent to bondholders, with The Bank of New York Trust Company, N.A., Dallas, Texas (successor paying agenUregistrar to Chase Bank of Texas, N.A.), in accordance with the redemption provisions applicable to such bonds; such suggested form of notice of redemption being attached hereto as Exhibit E and incorporated herein by reference as a part of this Ordinance for all purposes. (c) The bonds of that series known as "City of Wylie, Texas, General Obligation Bonds, Series 2000", dated August 15, 2000, maturing in the years 2013 through 2018 and 2020, and aggregating in principal amount $1,085,000, shall be redeemed and the same are hereby called for redemption on February 15, 2010, at the price of par and accrued interest to the date of redemption. The City Secretary is hereby authorized and directed to file a copy of this Ordinance, together with a suggested form of notice of redemption to be sent to bondholders, with The Bank of New York Trust Company, N.A., Dallas, Texas (successor paying agent/registrar to The Chase Manhattan Bank), in accordance with the redemption provisions applicable to such bonds; such suggested form of notice of redemption being attached hereto as Exhibit F and incorporated herein by reference as a part of this Ordinance for all purposes. The redemption of the obligations described above being associated with the advance refunding of such obligations, the approval, authorization and arrangements herein given and provided for the redemption of such obligations on the redemption dates designated therefor and in the manner provided shall be irrevocable upon the issuance and delivery of the Bonds; and the City Secretary is hereby authorized and directed to make all arrangements necessary to notify the holders of such obtigations of the City's decision to redeem such obligations on the 45889459.1~10613025 Ordinance No. 2007-10 General Obligation Refunding Bonds, Series 2007 21 dates and in the manner herein provided and in accordance with the ordinances authorizing the issuance of the obligations and this Ordinance. SECTION 20: Notices to Holders-Waiver. Wherever this Ordinance provides for notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and sent by United States Mail, first class postage prepaid, to the address of each Holder appearing in the Security Register at the close of business on the business day next preceding the mailing of such notice. In any case where notice to Holders is given by mail, neither the failure to mail such notice to any particular Holders, nor any defect in any notice so mailed, shall affect the sufficiency of such notice with respect to all other Bonds. Where this Ordinance provides for notice in any manner, such notice may be waived in writing by the Holder entitled to receive such notice, either before or after the event with respect to which such notice is given, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Paying Agent/Registrar, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver. SECTION 21: Cancellation. All Bonds surrendered for payment, redemption, transfer, exchange, or replacement, if surrendered to the Paying Agent/Registrar, shall be promptly cancelled by it and, if surrendered to the City, shall be delivered to the Paying Agent/Registrar and, if not already cancelled, shall be promptly cancelled by the Paying AgenURegistrar. The City may at any time deliver to the Paying Agent/Registrar for cancellation any Bonds previously certi~ed or registered and delivered which the City may have acquired in any manner whatsoever, and all Bonds so delivered shall be promptly cancelled by the Paying Agent/Registrar. All cancelled Bonds held by the Paying Agent/Registrar shall be returned to the City. SECTION 22: Leaal Opinion. The obligation of the Underwriters to accept delivery of the Bonds is subject to being furnished a final legal opinion of Fulbright & Jaworski L.L.P. approving such Bonds as to their validity, said opinion to be dated and delivered as of the date of delivery and payment for such Bonds. A true and correct reproduction of said opinion is hereby authorized to be printed on the definitive Bonds or an executed counterpart thereof shall accompany the global Bonds deposited with the Depository Trust Company. SECTION 23: CUSIP Numbers. CUSIP numbers may be printed or typed on the definitive Bonds. It is expressly provided, however, that the presence or absence of CUSIP numbers on the definitive Bonds shall be of no significance or effect as regards the legality thereof and neither the City nor attorneys approving the Bonds as to legality are to be held responsible for CUSIP numbers incorrectly printed or typed on the definitive Bonds. SECTION 24: Benefits of Ordinance. Nothing in this Ordinance, expressed or implied, is intended or shall be construed to confer upon any person other than the City, the Paying Agent/Registrar and the Holders, any right, remedy, or claim, legal or equitable, under or by reason of this Ordinance or any provision hereof, this Ordinance and all its provisions being intended to be and being for the sole and exclusive benefit of the City, the Paying Agent/Registrar and the Holders. SECTION 25: Inconsistent Provisions. All ordinances, orders or resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Ordinance are hereby repealed to the extent of such conflict, and the provisions of this Ordinance shall be and remain controlling as to the matters contained herein. 45889459.1/10613025 Ordinance No. 2007-10 General Obligation Refunding Bonds, Series 2007 22 SECTION 26: Governinq Law. This Ordinance shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. SECTION 27: Effect of Headinqs. The Section headings herein are for convenience only and shall not affect the construction hereof. SECTION 28: Construction of Terms. If appropriate in the context of this Ordinance, words of the singular number shall be considered to include the plural, words of the plural number shall be considered to include the singular, and words of the masculine, feminine or neuter gender shall be considered to include the other genders. SECTION 29: Continuing Disclosure Undertakinq. (a) Definitions. As used in this Section, the following terms have the meanings ascribed to such terms below: "MSRB" means the Municipal Securities Rulemaking Board. "NRMSIR" means each person whom the SEC or its staff has determined to be a nationally recognized municipal securities information repository within the meaning of the Rule from time to time. "Rule" means SEC Rule 15c2-12, as amended from time to time. "SEC" means the United States Securities and Exchange Commission. "SID" means any person designated by the State of Texas or an authorized department, officer, or agency thereof as, and determined by the SEC or its staff to be, a state information depository within the meaning of the Rule from time to time. (b) Annual Reports. The City shall provide annually to each NRMSIR and any SID, within six months after the end of each fiscal year (beginning with the fiscal year ending September 30, 2007) financial information and operating data with respect to the City of the general type included in the final Official Statement approved by Section 15 of this Ordinance, being the information described in Exhibit G hereto. Financial statements to be provided shall be (1) prepared in accordance with the accounting principles described in Exhibit G hereto and (2) audited, if the City commissions an audit of such statements and the audit is completed within the period during which they must be provided. If audited financial statements are not available at the time the financial information and operating data must be provided, then the City shall provide unaudited financial statements for the applicable fiscal year to each NRMSIR and any SID with the ~nancial information and operating data and will file the audited financial statements, when and if audited financial statements become available. If the City changes its fiscal year, it will notify each NRMSIR and any SID of the change (and of the date of the new fiscal year end) prior to the next date by which the City otherwise would be required to provide financial information and operating data pursuant to this Section. The financial information and operating data to be provided pursuant to this Section may be set forth in full in one or more documents or may be included by specific reference to any document (including an official statement or other offering document, if it is available from the MSRB) that theretofore has been provided to each NRMSIR and any SID or filed with the SEC.. 45889459.1/10613025 Ordinance No. 2007-10 General Obligation Refunding Bonds, Series 2007 23 (c) Material Event Notices. The City shall notify any SID and either each NRMSIR or the MSRB, in a timely manner, of any of the following events with respect to the Bonds, if such event is material within the meaning of the federal securities laws: 1. Principal and interest payment delinquencies; 2. Non-payment related defaults; 3. Unscheduled draws on debt service reserves reflecting financial difficulties; 4. Unscheduled draws on credit enhancements reflecting financial difficulties; 5. Substitution of credit or liquidity providers, or their failure to perform; 6. Adverse tax opinions or events affecting the tax-exempt status of the Bonds; 7. Modifications to rights of holders of the Bonds; 8. Bond calls; 9. Defeasances; 10. Release, substitution, or sale of property securing repayment of the Bonds; and 11. Rating changes. The City shall notify any SID and either each NRMSIR or the MSRB, in a timely manner, of any failure by the City to provide financial information or operating data in accordance with subsection (b) of this Section by the time required by such Section. (d) Limitations, Disclaimers, and Amendments. The City shall be obligated to observe and perform the covenants specified in this Section while, but only while, the City remains an "obligated person" with respect to the Bonds within the meaning of the Rule, except that the City in any event will give the notice required by subsection (c) hereof of any Bond calls and defeasance that cause the City to be no longer such an "obligated person." The provisions of this Section are for the sole benefit of the Holders and beneficial owners of the Bonds, and nothing in this Section, express or implied, shall give any benefit or any legal or equitable right, remedy, or claim hereunder to any other person. The City undertakes to provide only the financial information, operating data, financial statements, and notices which it has expressly agreed to provide pursuant to this Section and does not hereby undertake to provide any other information that may be relevant or material to a complete presentation of the City's financial results, condition, or prospects or hereby undertake to update any information provided in accordance with this Section or otherwise, except as expressly provided herein. The City does not make any representation or warranty concerning such information or its usefulness to a decision to invest in or sell Bonds at any future date. UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE HOLDER OR BENEFICIAL OWNER OF ANY BOND OR ANY OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY THE CITY, WHETHER NEGLIGENT OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS SECTION, BUT EVERY RIGHT AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC PERFORMANCE. No default by the City in observing or performing its obligations under this Section shall constitute a breach of or default under this Ordinance for purposes of any other provision of this Ordinance. Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the duties of the City under federal and state securities laws. Notwithstanding anything to the contrary in this Ordinance, the provisions of this Section may be amended by the City from time to time to adapt to changed circumstances resulting 45889459.1~10613025 Ordinance No. 2007-10 General Obligation Refunding Bonds, Series 2007 24 from a change in legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the City, but only if (1) the provisions of this Section, as so amended, would have permitted an underwriter to purchase or sell Bonds in the primary offering of the Bonds in compliance with the Rule, taking into account any amendments or interpretations of the Rule to the date of such amendment, as well as such changed circumstances, and (2) either (a) the Holders of a majority in aggregate principal amount (or any greater amount required by any other provision of this Ordinance that authorizes such an amendment) of the Outstanding Bonds consent to such amendment or (b) a Person that is unaffiliated with the City (such as nationally recognized bond counsel) determines that such amendment will not materially impair the interests of the Holders and beneficial owners of the Bonds. The provisions of this Section may also be amended from time to time or repealed by the City if the SEC amends or repeals the applicable provisions of the Rule or a court of final jurisdiction determines that such provisions are invalid, but only if and to the e~ent that reservation of the City's right to do so would not prevent underwriters of the initial public offering of the Bonds from lawfully purchasing or selling Bonds in such offering. If the City so amends the provisions of this Section, it shall include with any amended financial information or operating data filed with each NRMSIR and SID pursuant to subsection (b) of this Section an explanation, in narrative form, of the reasons for the amendment and of the impact of any change in the type of financial information or operating data so provided. SECTION 30: Severabilitv. If any provision of this Ordinance or the application thereof to any circumstance shall be held to be invalid, the remainder of this Ordinance and the application thereof to other circumstances shall nevertheless be valid, and the City Council hereby declares that this Ordinance would have been enacted without such invalid provision. SECTION 31: Public Meetinq. It is officially found, determined, and declared that the meeting at which this Ordinance is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Ordinance, was given, all as required by V.T.C.A., Government Code, Chapter 551, as amended. 45889459.1/10613025 Ordinance No. 2007-10 General Obligation Refunding Bonds, Series 2007 25 SECTION 32: Effective Date. This Ordinance shall take effect and be in fuil force from and after its adoption on the date shown below in accordance with V.T.C.A., Government Code, Section 1201.028. ('remainder of page left b/ank intentionally] 45889459.1/10613025 Ordinance No. 2007-10 General Obligation Refunding Bonds, Series 2007 26 PASSED AND ADOPTED, this March 27, 2007. CITY OF WYLIE, TEXAS ~ ``~~~~~iiina~i~~~~~ p F W y%,~ M r ;.~`•~'r .1~~•. ATTEST: ; C..~~~ . ~ ; - E~L = : = - o . - : . ~ `a`~ City Secretary Ei~~ E~~~.~`~~ (City Seal) Date of publication in The Wylie News - April 4, 2007 Ordinance No. 2007-10 General Obligation Refunding Bonds, Series 2007 45889459.1/10613025 S-1 EXHIBIT A PAYING AGENT/REGISTRAR AGREEMENT 45889459.1~10613025 A-1 Ordinance No. 2007-10 General Obligation Refunding Bonds, Series 2007 EXHIBIT B BOND PURCHASE AGREEMENT 45889459.1 /10613025 B- ~ Ordinance No. 2007-10 General Obligation Refunding Bonds, Series 2007 _ EXHIBIT C SPECIAL ESCROW AGREEMENT 45889459.1/10613025 C-~ Ordinance No. 2007-10 General Obiigation Refunding Bonds, Series 2007 EXHIBIT D NOTICE OF REDEMPTION CITY OF WYLIE, TEXAS GENERAL OBLIGATION BONDS SERIES 1997 DATED JANUARY 1, 1997 NOTICE IS HEREBY GIVEN that the bonds of the above series maturing on and after February 15, 2008, and aggregating in principal amount $1,790,000 have been called for redemption on June 1, 2007 at the redemption price of par and accrued interest to the date of redemption, such bonds being identified as follows: Year of CUSIP Year of CUSIP Maturitv Principal Amount Number Maturitv Principal Amount Number 2008 $135,000 2012 $170,000 2009 $145,000 2013 $180,000 2010 $150,000 2014 $195,000 2011 $160,000 2017 $655,000 ALL SUCH BONDS shall become due and payable on June 1, 2007, and interest thereon shall cease to accrue from and after said redemption date and payment of the redemption price of said bonds shall be paid to the registered owners of the bonds only upon presentation and surrender thereof to The Bank of New York Trust Company, N.A., Dallas, Texas (successor paying agent/registrar to Texas Commerce Bank, National Association) at its designated offices at the following addresses: First Class/ Reqistered/Certified Express Deliverv/Courier Bv Hand Onlv JPMorgan Chase Bank N.A. JPMorgan Chase Bank N.A. JPMorgan Chase Bank N.A. Institutional Trust Services Institutional Trust Services Room 234-North Building P. O. Box 2320 2001 Bryan Street, Institutional Trust Dallas, Texas 75221-2320 9th Floor Securities Window Dallas, Texas 75201 55 Water Street New York, New York 10041 THIS NOTICE is issued and given pursuant to the terms and conditions prescribed for the redemption of said bonds and pursuant to an ordinance by the City Council of the City of Wylie, Texas. THE BANK OF NEW YORK TRUST COMPANY, N.A., Dallas, Texas Address: 2001 Bryan Street, 8th Floor Dallas, Texas 75201 45889459.1/10613025 Ordinance No. 2007-10 General Obligation Refunding Bonds, Series 2007 D-1 _ _ EXHIBIT E NOTICE OF REDEMPTION CITY OF WYLIE, TEXAS GENERAL OBLIGATION BONDS SERIES 1999 DATED SEPTEMBER 1, 1999 NOTICE IS HEREBY GIVEN that the bonds of the above series maturing on and after February 15, 2011, and aggregating in principal amount $1,870,000 have been called for redemption on February 15, 2009 at the redemption price of par and accrued interest to the date of redemption, such bonds being identified as follows: Year of CUSIP Year of CUSIP Maturitv Principal Amount Number Maturitv Princiqal Amount Number 2011 $165,000 2016 $215,000 2012 $175,000 2017 $230,000 2013 $185,000 2018 $245,000 2014 $195,000 2019 $255,000 2015 $205,000 ALL SUCH BONDS shall become due and payable on February 15, 2009, and interest thereon shall cease to accrue from and after said redemption date and payment of the redemption price of said bonds shall be paid to the registered owners of the bonds only upon presentation and surrender thereof to The Bank of New York Trust Company, N.A., Dallas, Texas (successor paying agent/registrar to Chase Bank of Texas, N.A.) at its designated offices at the following addresses: First Class/ Reqistered/Certified Express Deliverv/Courier Bv Hand Onlv JPMorgan Chase Bank N.A. JPMorgan Chase Bank N.A. JPMorgan Chase Bank N.A. Institutional Trust Services Institutional Trust Services Room 234-North Building P. O. Box 2320 2001 Bryan Street, Institutional Trust Dallas, Texas 75221-2320 9th Floor Securities Window Dallas, Texas 75201 55 Water Street New York, New York 10041 THIS NOTICE is issued and given pursuant to the terms and conditions prescribed for the redemption of said bonds and pursuant to an ordinance by the City Council of the City of Wylie, Texas. THE BANK OF NEW YORK TRUST COMPANY, N.A., Dallas, Texas Address: 2001 Bryan Street, 8th Floor Dallas, Texas 75201 45889459.1/10613025 Ordinance No. 2007-10 General Obligation Refunding Bonds, Series 2007 E-1 EXHIBIT F NOTICE OF REDEMPTION CITY OF WYLIE, TEXAS GENERAL OBLIGATION BONDS SERIES 2000 DATED AUGUST 15, 2000 NOTICE IS HEREBY GIVEN that the bonds of the above series maturing on and after February 15, 2013, and aggregating in principal amount $1,085,000 have been called for redemption on February 15, 2010 at the redemption price of par and accrued interest to the date of redemption, such bonds being identified as follows: Year of CUSIP Year of CUSIP Maturitv Principal Amount Number Maturitv Princiqal Amount Number 2013 $110,000 2017 $140,000 2014 $115,000 2018 $145,000 2015 $125,000 2016 $130,000 2020 $320,000 ALL SUCH BONDS shall become due and payable on February 15, 2010, and interest thereon shall cease to accrue from and after said redemption date and payment of the redemption price of said bonds shall be paid to the registered owners of the bonds only upon presentation and surrender thereof to The Bank of New York Trust Company, N.A., Dallas, Texas (successor paying agenUregistrar to The Chase Manhattan Bank) at its designated offices at the following addresses: First Class/ Reqistered/Certified Express Deliverv/Courier Bv Hand Onlv JPMorgan Chase Bank N.A. JPMorgan Chase Bank N.A. JPMorgan Chase Bank N.A. Institutional Trust Services Institutional Trust Services Room 234-North Building P. O. Box 2320 2001 Bryan Street, Institutional Trust Dallas, Texas 75221-2320 9th Floor Securities Window Dallas, Texas 75201 55 Water Street New York, New York 10041 THIS NOTICE is issued and given pursuant to the terms and conditions prescribed for the redemption of said bonds and pursuant to an ordinance by the City Council of the City of Wylie, Texas. THE BANK OF NEW YORK TRUST COMPANY, N.A., Dallas, Texas Address: 2001 Bryan Street, 8th Floor Dallas, Texas 75201 45889459.1~10613025 Ordinance No. 2007-10 General Obligation Refunding Bonds, Series 2007 F-1 Exhibit G to Ordinance DESCRIPTION OF ANNUAL FINANCIAL INFORMATION The following information is referred to in Section 29 of this Ordinance. Annual Financial Statements and Operatinq Data The financial information and operating data with respect to the City to be provided annually in accordance with such Section are as specified (and included in the Appendix or under the headings of the Official Statement referred to) below: 1. The financial statements of the City appended to the Official Statement as Appendix B for the most recently concluded fiscal year. 2. The information contained in Tables 1 through 6 and 8 through 15 in the Official Statement. Accounting Principles The accounting principles referred to in such Section are the accounting principles described in the notes to the financial statements referred to in paragraph 1 above 45889459.1~10613025 Ordinance No. 2007-10 General Obligation Refunding Bonds, Series 2007 G-1 Cety of'~41y1i¢ General Obligation Refunding Bonds, Series 2007 Combination Tax and Revenue Certificates of Obligation, Series 2007 Feb-07 Mar-07 Apr-07 117ay-07 S M T W T F S S M T W T F S S M T W T F S S M T W T F S I 2 3 I 2 3 I 2 3 4 5 6 7 1 2 3 4 5 4 5 6 7 8 9 10 4 5 6 7 8 9 10 8 9 10 11 12 13 14 6 7 8 9 10 11 12 II 12 13 14 15 16 17 11 12 13 14 IS 16 17 15 16 17 18 19 20 21 13 14 15~16 17 ISi 19 18 19 20 21 22 23 24 18 19 20121 22 23 24 22 23 24 25 26 27 28 20 21 22 23 24 25 26 25 26 27 28 25 26 27 28 29 30 31 29 30 27 28 29 30 31 Complete By Day Event 14-Feb-07 Wednesday Begin preparation of Official Statemen 21-Feb-07 Wednesday Initial Draft of Official Statement distributed to City and t Bond Counsel for reviev~ 27-Feb-07 Tuesday Council passes resolution authorizing Notice of Intent Publication for Certificates of Obiigation 7-Mar-07 Wednesday Receive Official Statement information from City TBD First Publication of Notice of Intent to Issue Certificate no later than March 10, 2007 8-Mar-07 Thursday Provide draft of Preliminary Official Statement to credit rating agencies and insurance companies for review TBD Second Publication of Notice of Intent to Issue Certificates (same day of the week following lst publication) 16-Mar-07 Friday Finalize Preliminary Official Statement Distribute Preliminary Official Statement electronically through i-Deal Prospectus to Underwriters 21-Mar-07 Wednesday Receive credit ratings and insurance bids 26-Mar-07 Monday Pricing and verbal award to Underwriters 27-Mar-07 Tuesday City Adopts Ordinances and Awards Bonds and Certificates to Underwriters 2-Apr-07 Monday Prepare and distribute Final Official Statement 9-May-07 Wednesday Closing and delivery of funds ~ First Southwest Company Preliminary $4,890,000 City of Wylie, Texas General Obligation Refunding Bonds Series2007 Debt Service Comparison Date Total P+i Existinp D/S Net New DIS Old Net D/S Savinps 09/30/2007 82,06354 23,830.00 80,72739 80,727.39 (0.00) 09/30/2008 358,65250 260,830.00 619,482.50 642,432.51 22,950.01 09/30/2009 361,85250 263,125.00 624,977.50 647,603.14 22,625.64 09/30/2010 359,75250 261,125.00 620,877.50 643,043.77 22,166.27 09/30/2011 524,05250 ]02,625.00 626,677.50 647,292.52 20,615.02 09/30/2012 519,65250 A' 107,625.00 ~ 627,277.50 654,938.14 27,660.64 09/30/2013 632,45250 - 632,452.50 656,026.26 23,573.76 09/30/2014 637,15250 - 637,152.50 660,458.76 23,306.26 09/30/2015 640,85250 - 640,852.50 663,028.13 22,175.63 09/30/2016 638,65250 638,652.50 663,823.75 _ 25,171.25 09/30/2017 645,45250 - 645,452.50 667,823.75 22,371.25 09/30/2018 415,660.00 - 415,660.00 431,406.25 15,746.25 09/30/2019 409,57125 - 409,571.25 430,031.25 20,460.00 09l30/2020 153,18750 - 153,187.50 169,537.50 16,350.00 Total $6,379,007.29 $1,019,160.00 $7,373;001.14 $7,658,173.12 $285,17198 PV Analysis Summarv (Net to Net) Gross PV Debt Service Savings _ 256,83951 Net PV Cashflow Savings @ 4.353%(AIC) ~ _ 256,83951 Accrued Interest Credit to Debt Service Fund 25,16615 - _ _ Transfers from Prior Issue Debt Service Fund ___________i~68,10824) Net Present Value Benefit $213,897A2 Net PV Benefit / $4,745,000 Refunded Principal _ 4.508% Refundinq Bond Information Refunding Dated Date 3/152007 Refundir~ Delivery Date 5/012007 Pricinp Files - 2007 ~ GO Refundinp ~ 3/19l2007 ~ 3:47 PM • • ' ~ Preliminary $4,890,000 City of Wylie, Texas General Obligation Refunding Bonds Series 2007 Sources & Uses Dated 03/15/2007 ~ Delivered 05/01/2007 Sources Of Funds Paz Amount of Bonds $4,890,000.00 Reoffering Premium 36,96620 Accrued Interest from 03/15/2007 to05/O1/2007 25,166.15 Transfe~s from Prior Issue Debt Service Funds ' 68, ] 0824 Total Sources SS,OZO,Z40.59 Uses Of Funds Original Issue Discount (OID) 1,273.85 Total Undawriters Discount (0.750%) 36,675.00 Costs oflssuance 70,OOOAO Gross Bond Insurance Premium ( 35.0 bp) 22,32653 Deposit to Debt Service Fund 25,166.15 Deposit to Net Cash Escrow Fund 4,863,579.39 Rounding Amount 1,219.67 Total Uses $5 020 240.59 Pricing Files - 2007 ~ GO Refunding ~ 3/19/2007 ~ 3:47 PM • • ~ ~ Preliminary $4,890,000 City of Wylie, Texas General Obligation Refunding Bonds Series2007 Debt Service Schedule Part 1 of 2 Date Principal Coupon Interest Total P+i Fiscal Total os/ot/2oo7 - - _ _ _ 08/ 15/2007 - - 82,06354 82,063.54 - 09/30/2007 - - - - 82,06354 02/15/2008 165,000.00 4.000% 98,47625 263,476.25 - 08/15/2008 _ - - 95,17625 95,176.25 - 09/30/2008 - - - - 358,65250 02/15/2009 1'I5,000.00 4.000% 95,17625 270,176.25 - 08/15/2009 - - 91,67625 91,676.25 - 09/30/2009 - - - - 361,85250 02/15/2010 _ 180,000.00 4.000% 91,67625 271,676.25 - 08/ I S/2010 - - 88,07625 88,076.25 - 09/30/2010 - - - - 359,75250 02/15/2011 355,000.00 4.000% 88,07625 443,076.25 - 08/ 15/2011 - - 80,97625 SQ976.25 - 09/30/2011 - - - - 524,05250 02/15/2012 365,000.00 ` 4.000% 80,97625 445,976.25 - 08/IS/2012 - - 73,67625 73,676.25 - 09/30/2012 - - - - 519,65250 02/15/2013 495,000.00 4.000% 73,67625 568,676.25 - 08/15/2013 - - 63,77625 63,776.25 - 09/30/2013 - - - - 632,45250 02/15/2014 520,000.00 4.000% 63,77625 583,776.25 - 08/15/2014 - - 53,37625 53,376.25 - 09/30/2014 - - - - 637,15250 02/15/2015 545,000.00 4.000% 53,37625 598,376.25 - 08/ 15/2015 - - 42,47625 42,476.25 - 09/30/2015 - - - - 640,85250 02/15/2016 565,000.00 4.000% 42,47625 607,476.25 - 08/ 15/2016 - - 31,17625 31,176.25 - 09/30/2016 - - - - 638,65250 02/IS/2017 595,000.00 4.000% 31,17625 626,176.25 - 08/I S/2017 - - 19,27625 19,276.25 - 09/30/2017 - - - - 645,45250 02/IS/2018 385,000.00 4.100% 19,27625 404,276.25 - 08/15/2018 - - 11,383.75 11,383.75 - 09/30/2018 - - - - 415,660.00 02/15/2019 395,000.00 4.150% 11,383.75 406,383.75 - OS/15/2019 - - 3,18750 3, t 87.50 - 09/30/2019 - - - - 409,57125 02/15/2020 150,000.00 4.250% 3,18750 153,187.50 09/30/2020 - - - - 153,18750 Total $4,890~U00.00 - 51,489,007.29 $6,379,007.29 - Pricinp FGes - 2007 ~ GO Refundinp ~ 3/19/2007 ~ 3:47 PM • • ~ Preliminary $4,890,000 City of Wylie, Texas General Obligation Refunding Bonds Series2007 Debt Service Schedule Part 2 of 2 Yield Statistics Accrued Inte~est Gom 03/15/2007 to05/O1/2007 25,166.15 Bond Year Dollars $36,197b7 Average Life 7.402 Years Average Coupon 41135450% Net Interest Cost (NIC) 4.1162596% True Interest Cost (TIC) 4.0447966% Bond Yield for Arbitrage Pwposes 4.2173789% All Inclusive Cost (AIC) 4.3527543% IRS Form 8038 Net Interest Cost 3.9215366% WeightedAverage Maturiry 7.393 Yeazs Pricinp Files - 2007 ~ GO Refundi~p ~ 3l19I2007 ~ 3:47 PM ~ • ~ • Preliminary $4,890,000 City of Wylie, Texas General Obligation Refunding Bonds Series 2007 Summary Of Bonds Refunded of Maturity Issue Maturitv Type Bond Coupon Value Call Date Cali Price Dated 8/15/1998 ~ Detivered 8/15/1998 gobds97 02/15/2008 Serial Coupon 5.050% 135,000 O6/O1/2007 100.000% gobds97 02/15/2009 Serial Coupon 5.125% 145,000 O6/O1/2007 100.000% gobds97 02/15/2010 Serial Coupon 5.125% 150,000 O6/O1/2007 100.000% gobds97 02/15/2011 Serial Coupon 5.250% 160,000 O6/O1/2007 100.000% gobds97 02/15/2012 Serial Coupon 5.250% 170 000 06/O1/2007 100.000% gobds97 02/IS/2013 Serial Coupon 5.250% 180,000 06/O1/2007 ]00.000% gobds97 02/15/2014 Serial Coupon 5.250% 195,000 O6/O1/2007 ]00.000% gobds97 02/15/2015 Serial Coupon 5.375% 205,000 06/O1/2007 100.000% gobds97 02/15/2016 Serial Coupon 5.375% 220,000 06/O1/2007 100.000% ~obds97 02/15/2017 Serial Counon 5375% 230,000 06/O1/2007 100.000% Subtotai - $1,790~D00 - - Dated 8/15/1998 ~ Delivered 8/15/1998 gobds99 02/15/2011 Serial Coupon 5.100% 165,000 02/15/2009 ]00.000% gobds99 02/15/2012 Serial Coupon 5.125% ]75,000 02/15/2009 100.000% gobds99 02/15/2013 Serial Coupon 5.200% 185,000 02/15/2009 100.000% gobds99 _ 02/IS/2014 Serial Coupon 5.250% 195,000 02/15/2009 ]00.000% gobds99 02/15/2015 Serial Coupon 5.250% 205,000 02/15/2009 ]00.000% gobds99 02/IS/2016 Serial Coupon 5.250% 215,000 02/15/2009 ]00.000% gobds99 02/15/2017 Serial Coupon 5.250% 230,000 02/15/2009 100.000% gobds99 02/15/2018 Serial Coupon 5.250% 245,000 02/15/2009 ]00.000% r;obds99 02/IS/2019 Serial Couaon 5.250% 255.000 02/15/2009 ]00.000% Subtotal $1,870~00 - Dated 8/15/2000 ~ Delivered 9/262000 GO Bonds Series 2000 02/15/?A13 Serial Coupon 5.100% 110,000 02/15/2010 100.000% GO Bonds Series 2000 02/15/?A14 Serial Coupon 5.200% 115,000 02/15/2010 ]00.000% GO Bonds Series 2000 02/15/7A15 Serial Coupon 5.300% 125,000 02/IS/2010 ]00.000% GO Bonds Series 2000 02/15/2016 Serial Coupon 5.300% 130,000 02/15/2010 ]00.000% GO Bonds Series 2000 02/15/2017 Serial Coupon 5.400% 140,000 02/15/2010 100.000% GO Bonds Series 2000 OZ/15/2018 Serial Coupon 5.500% 145,000 02/15/2010 100.000% GO Bonds Series 2000 02/15/2019 Term 1 Coupon 5.500% 155,000 02/15/2010 100.000% GO Bonds Series 2000 02/IS/2020 Term 1 Couuon 5.500% 165,000 02/15/2010 100.000% Subtotal - - $1,085,000 - - Total - - $4,745~00 - Pricinp Files - 2007 ~ GO Refunding ~ 3/79/2007 ~ 3:47 PM • ~ ~ . ~ ~ ~ C8S Media, Inc. ~~je ~Farrner~bitCe aGittte~ • Murphy Monitor • The Princeton Herald • The Sachse News • THE WYL[E NEWS . A ~~f,,,..~ STATE OF TEXAS ~ COUNTY OF COLLIN l~ 2 Before me, the undersigned authority, on this day personally appeared Chad Engbrock, publisher of The Wylie News, a newspaper regularly published in Collin County, Texas and having general circulation in Collin County, Texas, who being by me duly sworn, deposed and says that the foregoing attached City of Wylie Ordinance No. 2007-09, 2007-10 was published in said newspaper on the Following dates, to-wit: Apri14, 2007 Chad Engbrock, Publisher . ~ Subscribed and sworn before me on this, the ~ day of , 2007 to certify which witness my hand and seal of office. ~ ~ ~~Ar PdB ~ k,~. , o MARY SWANK otar Public in and for Notary Public, State of Texas :,~~l,,; My Commission Expires The State of Texas ~''%,',;;o~~~;.r 5ept6rrlb@r 22, 2010 My commission expires ~ ~ ~ °Z ~ ~ ~ Murphy/Sachse/Wylie Office • 110 N. Ballard • P.O. Box 369 • Wylie, TX 75098 • 972-442-5515 • fax 972-442-4318 Farmersville/Princeton Office • 101 S. Main • P.O. Box 512 • Fam~sville, TX 75442 • 972-784-6397 • faa~ 972-782-7023 ORDINANCE NO. 2007-10 AN ORDINANCE AU'~HORIZING THE ISSUANCE OF "CITY ' OF WYLIE, TEXA$, GENERAL OBLIGA- TION REFUNDING BO-NDS, SERIES 2007' ; SPECIF'YTNG TI~E TERMS AND FEA- TURES OF SAID BONDS; LEVYING A CONTINUIl'~ifs DIRECT ANNUAL AD VAL- OREM TAX FOR THE , PAYMENT OF SAID BONDS; PROVIDING . FOR THE RED~IVIP- TION OF CERTAIN OUTSTANDING` OBLIGATIONS OF THE CI;fY; AND RESOL~ING OTHER MA1'FERS INCI- DENT AND RELATED' TO THE ISSUANCE, SALE, PAYMENT AND DELIVE~Y OF SAID BONDS, INCLUDING THE APPROVAL AND E~ECUTIfJN OF A PAY- ING": AGENT/~2EGIS- TRAR AGREEMENT, .A PURCHASE CdN- TRACT AI~D A SPE- CIAL ESCROW AGREE- MEN'~ AND THE APPROVAL AND DIS- TRIBUTION OF AN OFFICIAL . STATE- MENT; AND . PROVID- ING AN EFFECTIVE DATE. John Mondy, IVlayor ATTEST: Carole Etirlich, . City Secretary f • 46-1t-339-941i