Page 80 - Burleson FY22 City Budget

ATTACHMENT E - SECURITIES LAW COMPLIANCE AND DISCLOSURE POLICY©

For the purposes of the event identified as item (12) in this Section 5.01, the event is considered to occur when any of the following
occur: the appointment of a receiver, fiscal agent or similar officer for an obligated person in a proceeding under the U.S.
Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed
jurisdiction over substantially all of the assets or business of the obligated person, or if such jurisdiction has been assumed by
leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or
governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or
governmental authority having supervision or jurisdiction over substantially all of the assets or business of the obligated person.

The Disclosure Officer may seek the advice of other employees and officials of the Issuer, as well as the advice of the consultants
and counsel to the Issuer, as to whether one of the above described events has occurred and whether an Event Notice shall be
filed with the MSRB consistent with Rule 15c2-12.
SECTION 5.02 EVENT 15: INCURRENCE OF A MATERIAL FINANCIAL OBLIGATION OR TERMS AFFECTING
SECURITY HOLDERS.
(a) Event 15. Beginning on the Compliance Date and continuing thereafter, in addition to the fourteen events described in
Section 5.01 and Event 16 described in Section 5.03, the Disclosure Officer shall determine whether an Event 15 has
occurred with respect to the Issuer. If the Disclosure Officer determines that an Event 15 has occurred, the Disclosure
Officer shall file, or cause to be filed, notice of such Event 15 with the MSRB through EMMA in a timely manner, not in
excess of ten (10) Business Days after the date of incurrence. Beginning on the Compliance Date, Rule 15c2-12
establishes that an Event 15 is as follows:

(15) Incurrence of a Financial Obligation of the Obligated Person, if Material, or agreement to covenants, events of
default, remedies, priority rights, or other similar terms of a Financial Obligation of the Obligated Person, any
of which affect security holders, if Material.
The Issuer recognizes that, unlike the events listed in Section 5.01 above, the stated purpose of the SEC in adding Event 15 to
Rule 15c2-12 is to provide the secondary market with information regarding all debt, debt-like or debt-related Financial Obligations
or Terms Affecting Security Holders incurred by the Issuer. The incurrence of Financial Obligations may occur outside the issuance
of Municipal Securities and therefore engagement by the Disclosure Officer with counsel and other consultants experienced in
compliance issues related to Rule 15c2-12 may be necessary to determine whether it is necessary to file an Event Notice for Event
15 with the MSRB through EMMA.
(b) Financial Obligations and Terms Affecting Security Holders Subject to Disclosure. The Disclosure Officer shall first
determine whether a contract or obligation incurred by the Issuer is a Financial Obligation or Terms Affecting Security
Holders subject to disclosure under Event 15. When assessing whether a particular contract or obligation is a Financial
Obligation or Terms Affecting Security Holders subject to disclosure as such terms are used in Event 15, the Disclosure
Officer should consider the facts and circumstances surrounding the Issuer's incurrence of each type of contract and
obligation, as well as the factors set forth below:

i. Whether the contract or obligation could affect, or contains provisions or triggers that may impair, the Issuer's
liquidity, overall creditworthiness or an existing security holders' rights;

ii. Whether the contract or obligation is a private placement of debt with a financial institution, letter of credit, standby
line of credit, or a similar "credit agreement" that relates to a Debt Obligation;

iii. Whether the contract or obligation is an ordinary financial and operating liability incurred in the Issuer's normal
course of business;

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