Page 81 - Burleson FY22 City Budget

ATTACHMENT E - SECURITIES LAW COMPLIANCE AND DISCLOSURE POLICY©

iv. Whether the contract or obligation contains acceleration provisions or restrictive debt service covenants that could
affect the rights of existing security holders;

v. Whether the contract or obligation is a short or long-term Debt Obligation of the Issuer under the terms of an
indenture, loan agreement, capital lease, or other similar contract such as a line of credit;

vi. Whether the contract or obligation is an operating lease, or a capital lease which operates as a vehicle for
borrowing money (e.g. a lease-purchase agreement). For purposes of this Disclosure Policy, factors relevant to
determining whether a lease is a vehicle for borrowing money (i.e., a Financial Obligation) are included in Exhibit
A attached hereto;

vii. Whether the contract or obligation represents competing debt with the Issuer's prior Debt Obligations that may
affect the rights of the existing security holders;

viii. Whether the contract or obligation is a derivative instrument entered into in connection with a pledge as security
or source of payment for an existing or planned Debt Obligation, which may include any swap, security-based
swap, futures contract, forward contract, option, a combination of the foregoing or any similar instrument;

ix. Whether the contract or obligation is a derivative instrument designed to mitigate investment risk; or

x. Whether the contract or obligation is a guarantee provided by the Issuer as a guarantor for the benefit of a third
party.
The Disclosure Officer will consult with bond counsel, legal counsel to the Issuer (including designated disclosure counsel, if any),
accountants, municipal advisors, financial advisors and other outside consultants to the extent necessary in making a determination
as to whether a contract or obligation incurred by the Issuer is a Financial Obligation or Terms Affecting Security Holders subject
to the disclosure requirements of Event 15.
(c) Determination of Material Event 15. If the Disclosure Officer determines that the Issuer has incurred a Financial
Obligation or Terms Affecting Security Holders subject to Event 15, the Disclosure Officer shall proceed to determine
whether such Financial Obligation or Terms Affecting Security Holders are Material. The same practice used by the
Issuer for determining whether a particular piece of information is Material in connection with preparing a disclosure
document for an Offering set forth in Section 3.02(f) should be used for purposes of Event 15.

The Disclosure Officer shall determine whether a Financial Obligation or Terms Affecting Security Holders are Material upon the
incurrence of the Financial Obligation or the Terms Affecting Security Holders, taking into account all relevant facts and
circumstances. Relevant facts and circumstances may include, but are not limited to:

i. The principal amount of the Financial Obligation, including the aggregate par amount of a
series of related Financial Obligations, and the method of setting or adjusting the interest rate
thereof;

ii. The Issuer's overall balance sheet and the size of its existing Debt Obligations;

iii. The source of security pledged for repayment of the Financial Obligation and the rights
associated with such pledge;

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