WILLIAM DONALD SCHAEFER, Governor

A NEGOTIATED BASIS WITHOUT SOLICITATION OF BIDS AT A PRICE AT,
ABOVE OR BELOW PAR, (III) MAY BE ISSUED IN ONE OR MORE SERIES,
EACH SERIES BEING IN THE PRINCIPAL AMOUNT THAT THE ISSUER
DETERMINES TO BE REQUIRED TO ACHIEVE THE PURPOSE FOR THE ISSUANCE
OF THE PENSION LIABILITY FUNDING BONDS, (IV) SHALL BEAR INTEREST
AT FIXED RATES DETERMINED BY THE ISSUER OR AT FLOATING OR
VARIABLE RATES ESTABLISHED FROM TIME TO TIME BY A METHOD OF
DETERMINATION APPROVED BY THE ISSUER, (V) MAY BE ISSUED AS SERIAL
BONDS OR AS TERM BONDS WITH PROVISIONS FOR MANDATORY SINKING FUND
OR OTHER ANNUAL PRINCIPAL REDEMPTION, PROVIDED THAT THE PRINCIPAL
AND INTEREST INSTALLMENTS ON THE BONDS NEED NOT BE EQUAL FROM
YEAR TO YEAR AND MAY BE CONSISTENT WITH THE GENERAL FINANCIAL
PLAN OF THE ISSUER, AND (VI) SHALL HAVE A FINAL MATURITY DATE NOT
MORE THAN 30 YEARS FROM THE DATE OF ISSUE. THE FIRST PRINCIPAL
INSTALLMENT OR MANDATORY REDEMPTION OF ANY PENSION LIABILITY
FUNDING BONDS SHALL BE PAYABLE NOT MORE THAN 3 YEARS FROM THE
DATE OF ISSUE.

(D)  THE PROCEEDS OF PENSION LIABILITY FUNDING BONDS, IN
AMOUNTS DETERMINED BY THE ISSUER, MAY BE DEPOSITED IN TRUST WITH
A TRUST COMPANY OR OTHER BANKING INSTITUTION AS TRUSTEE, IN A
TRUST FUND ESTABLISHED IN THE NAME OF THE ISSUER. MONEY IN THE
TRUST FUND MAY BE INVESTED AND REINVESTED IN ANY TAXABLE OR
TAX-EXEMPT SECURITIES, OBLIGATIONS, OR OTHER INVESTMENTS AND AT
ANY YIELDS THAT ARE DETERMINED BY THE ISSUER TO BE CONSISTENT
WITH THE PURPOSES FOR WHICH THE PENSION LIABILITY FUNDING BONDS
WERE ISSUED AND WITH THE FINANCIAL PLAN OF THE ISSUER. THE
INTEREST, INCOME, AND PROFITS, IF ANY, EARNED OR REALIZED ON ANY
INVESTMENT MAY BE APPLIED TO THE PAYMENT OF A PORTION OF THE
BENEFITS UNDER THE PENSION PLAN TO BE FUNDED, TO THE PAYMENT OF
THE PENSION LIABILITY FUNDING BONDS OR OTHERWISE APPLIED IN ANY
LAWFUL MANNER. MONEY IN THE TRUST FUND SHALL BE AVAILABLE FOR
THE PAYMENT OF ALL OR ANY PART OF THE BENEFITS UNDER THE PENSION
PLAN BEING FUNDED AND OF THE PENSION LIABILITY FUNDING BONDS, OR
ANY OF THEM, AND OF ANY OTHER RELATED COSTS, AS THE ISSUER, IN
ITS DISCRETION, MAY PRESCRIBE.

(E)  IN ANY SUIT, ACTION, OR PROCEEDING INVOLVING THE
VALIDITY OR ENFORCEABILITY OF ANY PENSION LIABILITY FUNDING BOND
ISSUED UNDER THIS SECTION OR ANY SECURITY THEREFOR, ANY FINDING
BY THE LEGISLATIVE OR OTHER GOVERNING BODY OF THE ISSUER AS TO
THE PUBLIC PURPOSE OF ANY ACTIONS TAKEN UNDER THIS SECTION OR AS
TO OTHER MATTERS RELATING TO THE ISSUANCE OF BONDS HEREUNDER
SHALL BE CONCLUSIVE.

(F)  PENSION LIABILITY FUNDING BONDS ISSUED PURSUANT TO THIS
SECTION, THEIR TRANSFER, THE INTEREST PAYABLE ON THEM AND ANY
INCOME DERIVED FROM THEM, INCLUDING ANY PROFIT REALIZED IN THEIR
SALE AND EXCHANGE, SHALL BE EXEMPT AT ALL TIMES FROM EVERY KIND
AND NATURE OF TAXATION BY THIS STATE OR BY ANY OF ITS POLITICAL
SUBDIVISIONS, MUNICIPAL CORPORATIONS, OR PUBLIC AGENCIES OF ANY
KIND. NOTHING IN THIS SECTION SHALL PREVENT ANY PUBLIC BODY
DESCRIBED IN PARAGRAPH (B) ABOVE FROM AUTHORIZING THE ISSUANCE

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