51-06 Issuance/Sale of Water System Revenue Bonds $12,500,00

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(c) Interest and Place ofPavrnent. The Series 2006 Bonds shall bear interest, computed on the basis of a 360"day year composed of twelve 30-day months, from the most recent date to which interest haS been paid or duly provided for or, if no interest has been paid or duly provided for, from their date. Interest on the Series 2006 Bonds shall be payable semi- annually on the Interest Payment Dates at their respective Specified Interest Rates. The principal of and any premium on the Series 2006 Bonds shall be payable at the principal corporate trust office of the Trustee as provided in Section 3.05 of the Origiual Indenture, and interest on the Series 2006 Bonds shall be payable as provided in Section 3 .05 of the Original Indenture, in each instance without deduction for the services of any Paying Agent. (d) Principal Maturities of the Series 2006 Bonds. The Series 2006 Bonds shall mature on the Principal Payment Dates, in accordance with the Principal Retirement Schedule (subject to mandatory and optional redemption as described below); provided that no Series 2006 Bond shall rnature later than July 1, 2046; and provided, finther, that the Bond Service Charges with respect to the Series 2006 Bonds m the Bond Year in which principal of the Series 2006 Bonds is payable and such Bond Service Charges are the largest shall be no more than 120% of the Bond Service Charges with respect to the Series 2006 Bonds in the Bond Year in which principal of the Series 2006 Bonds is payable and such Baud Service Charges are the smallest. Subject to the provisions of the inmaediately preceding sentence, the Fiscal Officer shall determine and shall specify in the Certificate of Award the Series 2006 Bonds that shall be issued as Serial Bonds and the Series 2006 Bonds that shall be issued as Term Bonds. (e) Use ofBook-entrv Svstem. The Series 2006 Bonds shall originally be issued solely in Bqok-entry fonu to a Depository to be held in a Book-entry system iu accordance with this Series 2006 Bond Legislation. The Fiscal Officer is hereby authorized and' directed to engage the services of The Depository Trust Company ("DTC") in connection with depository services for Series 2006 Bonds, including holding the Series 2006 Bonds in Book-entry form, and to enter into any agreements determined necessary or appropriate in connection with such engagement or the registration, authentication, immobilization, and transfer of Series 2006 Bonds, including arrangements for the payment of principal, premium, if any, and interest by wire transfer, after determining that the execution thereof will not endanger the funds or securities of the Issuer, which detennination shall be conclusively evidenced by the signing of any such agreement. If and as long as a Book-entry system is utilized, (i) the Series 2006 Bonds shall be issued in the fonu of one fully registered Series 2006 Bond for each rnaturity registered in the name of the Depository or its nominee, as registered owner, and immobilized in the custody of the Depository; (ii) (a) the principal of and any premium on the Series 2006 Bonds shall be payable in next day or federal funds delivered or transmitted to the Depository or its nominee and (b) interest on the Series 2006 Bonds shall be payable in next day or federal fuuds delivered to the Depository or its nominee on the applicable Interest Payment Date; (iii) the beneficial owners in Book-entry form shall have no right to receive Series 2006 Bonds in the fonn of physical securities or certificates; (iv) ownership of beneficial interests in Book-entry form shall be shown by a book entry on the system rnaintained and operated by the Depository and its Participants, and transfers of the ownership of beneficial interests shall be rnade ouly by book entry by the Depository and its Participants; and (v) the Series 2006 Bonds as such shall not be transferable of exchangeable, except for transfer to another Depository or to another nominee of a Depository, without finther action by the Legislative Authority. If any Depository determines not to continue to act as a Depository for the Series 2006 Bonds for use in a Book-entry system, the Fiscal Officer may attempt to have established a securities depositorylbook-eutry relationship with another qualified Depository. If the Fiscal Officer does not or is unable to do so, the Fiscal Officer, after making provision for notification of the beneficial owners by the then Depository and any other arrangements he/she deems necessary, shall permit withdrawal of the Series 2006 Bonds from the Depository, and authenticate and deliver bond certificates in bearer or registered form, as he/she determines, to the assigns of the Depository or its nominee, all at the cost and expense (including any costs of printing), if the event is not the result of Legislative Authority action or inaction, of those persons requesting such issuance. (I) Redemption of the Series 2006 Bonds. If Series 2006 Bonds or portions are duly called for redemption and if on such redemption date moneys for redemption of all such Series 2006 Bonds to be redeemed, together with accrued interest to the redemption date, and any applicablé redemption premium shall be held by the Trustee or Paying Agents so as to be available therefor, then from and after such redemption date such Series 2006- Bonds or portions thereof shall cease to bear interest.