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<br />-42- <br />ARTICLE X <br /> <br />DEFEASANCE <br /> <br />SECTION 10.01. Discharge of Indenture. If the Authority shall pay and discharge any <br />or all of the Outstanding Bonds in any one or more of the following ways: <br /> <br />(a) by well and truly paying or causing to be paid the principal of and interest <br />and premium (if any) on such Bonds, as and when the same become due and payable; <br /> <br />(b) by depositing with the Trustee, irrevocably, at or before maturity, money <br />which, together with the available amounts then on deposit in the funds and accounts <br />established pursuant to this Indenture, is fully sufficient to pay such Bonds, including all <br />principal, interest and redemption premiums; or <br /> <br />(c) by depositing with a qualified escrow holder, in escrow, Defeasance <br />Obligations in such amount as the Authority (verified by an Independent Certified Public <br />Accountant) shall determine will, together with the interest to accrue thereon and <br />available moneys then on deposit in the funds and accounts established pursuant to this <br />Indenture and/or the Installment Sale Agreement, be fully sufficient to pay and discharge <br />the indebtedness on such Bonds (including all principal, interest and redemption <br />premiums, if any) at or before their respective maturity dates; <br /> <br />and if such Bonds are to be redeemed prior to the maturity thereof notice of such redemption <br />has been mailed pursuant to Section 4.03 or provision satisfactory to the Trustee has been <br />made for the mailing of such notice, then, at the election of the Authority, and notwithstanding <br />that any of such Bonds have not been surrendered for payment, the pledge of the Revenues <br />and other funds provided for in this Indenture with respect to such Bonds, and all other <br />pecuniary obligations of the Authority under this Indenture with respect to all such Bonds, shall <br />cease and terminate, except only the obligation of the Authority to pay or cause to be paid to the <br />Owners of such Bonds not so surrendered and paid all sums due thereon from amounts set <br />aside for such purpose as aforesaid, and all expenses and costs of the Trustee. Notice of such <br />election shall be filed with the Trustee. <br /> <br />Any funds thereafter held by the Trustee, which are not required for said purposes, shall <br />be paid over to the Authority or the City. <br /> <br />SECTION 10.02. Unclaimed Funds. Notwithstanding any provisions of this Indenture, <br />any moneys held by the Trustee in trust for the payment of the principal of, or interest on, any <br />Bonds and remaining unclaimed for 2 years after the principal of all of the Bonds has become <br />due and payable (whether at maturity or upon call for redemption or by acceleration as provided <br />in this Indenture), if such moneys were so held at such date, or 2 years after the date of deposit <br />of such moneys if deposited after said date when all of the Bonds became due and payable, <br />shall be repaid to the Authority free from the trusts created by this Indenture, and all liability of <br />the Trustee with respect to such moneys shall thereupon cease; provided, however, that before <br />the repayment of such moneys to the Authority as aforesaid, the Trustee shall (at the cost of the <br />Authority) first mail to the Owners of Bonds which have not yet been paid, at the addresses <br />shown on the Bond Registration Books, a notice, in such form as may be deemed appropriate <br />by the Trustee with respect to the Bonds so payable and not presented and with respect to the <br />provisions relating to the repayment to the Authority of the moneys held for the payment thereof. <br />Page 58 of 205