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• This bond is issued for the purpose of providing financing of a portion of the costs of constructing extensions, betterments and improvements to the sewer facilities of the City's water and sewer system, and costs of authorizing and issuing this bond, and is issued pursuant to and in full compliance with the Constitution and laws of the State of Arkansas (the "State"), including particularly Amendment No. 62 to the Arkansas Constitution and the Arkansas Code of 1987 Annotated, Title 14, Chapter 164, Subchapter 3 (the "Authorizing Legislation'), and pursuant to Ordinance No. of the City, duly adopted and approved on the 22nd day of December, 2009 (the "Authorizing Ordinance") and an election duly held on March 10, 2009 at which the majority of the legal voters of the City voting on the question approved the issuance of this bond. Reference is hereby made to the Authorizing Ordinance for the details of the nature and extent of the security and of the rights and obligations of the City and the registered owner of this bond. This bond may be assigned with the written approval of the Arkansas Natural Resources Commission (the "Commission"), and in order to effect such assignment the assignor shall promptly notify the City Clerk by registered mail, and the assignee shall surrender this bond along with a written approval of the Commission to the City Clerk for transfer on the registration records. Every assignee shall take this bond subject to all payments and prepayments of principal (as reflected by the Payment Record maintained by the City Clerk), prior to such surrender for transfer. This bond does not constitute an indebtedness of the City within any • constitutional or statutory limitation or provision. This bond is a special obligation payable solely from a pledge of collections of the City's 1% sales and use tax, levied by Ordinance No. 2009-1-1 of the City duly adopted on January 13, 2009 under the authority of the Authorizing Legislation (the"Tax"), and the City hereby pledges its collections of the Tax for the payment of this bond. The City has reserved the right in the Authorizing Ordinance to issue additional bonds on a parity of security with this bond ("Additional Parity Bonds"). This bond may be prepaid, at the option of the City, in whole or in part at any time from Tax collections in excess of the amount necessary to insure the prompt payment of the principal of and interest on this bond("Surplus Tax Collections") as the same becomes due at the prepayment price equal to the principal amount being prepaid plus accrued interest to the prepayment date. If there are no Additional Parity Bonds outstanding, 100% of the Surplus Tax Collections shall be applied to the redemption of this bond. If there are Additional Parity Bonds outstanding, the City shall determine the bonds to be redeemed from Surplus Tax Collections. This bond may also be prepaid at the option of the City from funds from any other source, in whole but not in part, at any time on and after April 15, 2020, at a prepayment price equal to the principal amount outstanding, plus accrued interest to the prepayment date, upon 90 days' notice. Notice shall be given of each prepayment in writing mailed to the address of the owner of this bond or registered assigns at the address as reflected on the bond registration books of the City Clerk. • IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts, conditions and things required by the Constitution and statutes of the State to exist, happen and be performed precedent to and in the issuance of this bond do exist, have happened and have 5