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maturity thereof, there shall have been taken all action necessary to call such Bonds for
<br /> redemption and notice of such redemption shall have been duly given or provision shall have
<br /> been made for the giving of such notice, and (B) there shall have been deposited in irrevocable
<br /> trust with a banking institution or trust company by or on behalf of the Issuer either moneys in
<br /> an amount which shall be sufficient, or Federal Securities the principal of and the interest on
<br /> which when due will provide moneys which, together with the moneys, if any, deposited with
<br /> such bank or trust company at the same time shall be sufficient, to pay the principal of or
<br /> Redemption Price,if applicable, and interest due and to become due on said Bonds on and prior
<br /> to the redemption date or maturity date thereof, as the case may be. Except as hereafter
<br /> provided, neither the Federal Securities nor any moneys so deposited with such bank or trust
<br /> company nor any moneys received by such bank or trust company on account of principal of or
<br /> Redemption Price, if applicable, or interest on said Federal Securities shall be withdrawn or
<br /> used for any purpose other than, and all such moneys shall be held in trust for and be applied
<br /> to, the payment, when due, of the principal of or Redemption Price, if applicable, of the Bonds
<br /> for the payment or redemption of which they were deposited and the interest accruing thereon
<br /> to the date of maturity or redemption; provided, however, the Issuer may substitute new
<br /> Federal Securities and moneys for the deposited Federal Securities and moneys if the new
<br /> Federal Securities and moneys are sufficient to pay the principal of or Redemption Price, if
<br /> applicable, and interest on the refunded Bonds.
<br /> For purposes of determining whether Variable Rate Bonds shall be deemed to have been
<br /> paid prior to the maturity or redemption date thereof, as the case may be, by the deposit of
<br /> moneys, or specified Federal Securitiesand moneys, if any, in accordance with this Section 8.01,
<br /> the interest to come due on such Variable Rate Bonds on or prior to the maturity or redemption
<br /> date thereof, as the case may be, shall be calculated at the Maximum Interest Rate; provided,
<br /> however, that if on any date, as a result of such Variable Rate Bonds having borne interest at
<br /> less than the Maximum Interest Rate for any period, the total amount of moneys and specified
<br /> Federal Securities on deposit for the payment of interest on such Variable Rate Bonds is in
<br /> excess of the total amount which would have been required to be deposited on such date in
<br /> respect of such Variable Rate Bonds in order to satisfy this Section 8.01, such excess shall be
<br /> paid to the Issuer free and clear of any trust, lien, pledge or assignment securing the Bonds or
<br /> otherwise existing under this Resolution.
<br /> In the event the Bonds for which moneys are to be deposited for the payment thereof in
<br /> accordance with this Section 8.01 are not by their terms subject to redemption within the next
<br /> succeeding sixty (60) days, the Issuer shall cause the Registrar to mail a notice to the Holders of
<br /> such Bonds that the deposit required by this Section 8.01 of moneys or Federal Securities has
<br /> been made and said Bonds are deemed to be paid in accordance with the provisions of this
<br /> Section 8.01 and stating such maturity or redemption date upon which moneys are to be
<br /> available for the payment of the principal of or Redemption Price, if applicable, and interest on
<br /> said Bonds.
<br /> Nothing herein shall be deemed to require the Issuer to call any of the Outstanding
<br /> Bonds for redemption prior to maturity pursuant to any applicable optional redemption
<br /> provisions, or to impair the discretion of the Issuer in determining whether to exercise any such
<br /> option for early redemption.
<br /> SECTION 8.02 Sale of Bonds. The Bonds shall be issued and sold at public or
<br /> private sale at one time or in installments from time to time and at such price or prices as shall
<br /> be consistent with the provisions of the Act, the requirements of this Resolution and other
<br /> applicable provisions of law and as shall be approved by Supplemental Resolution of the Issuer.
<br /> SECTION 8.03 Capital Appreciation Bonds. For the purposes of (i) receiving
<br /> payment of the redemption price of a Capital Appreciation Bond if redeemed prior to maturity,
<br /> (ii) receiving payment if the principal of all Bonds is declared immediately due and payable, (iii)
<br /> computing Annual Debt Service, and (iv) computing the amount of Holders required for any
<br /> notice, consent, request or demand hereunder for any purpose whatsoever, the principal
<br /> amount of a Capital Appreciation Bond shall be deemed to be its Compounded Amount.
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