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THE TRUSTEE BNY Trust Company of Missouri, a state trust company organized and existing under the laws of the State of Missouri, will be the Trustee under the Indenture and lessor under the Lease. The Trustee may consult with counsel, and the opinion of such counsel will be full and complete authorization and protection with respect to any action taken or suffered by the Trustee in good faith in accordance with such opinion. The Trustee may execute any trusts or powers or perfom~ the duties required by the Indenture or the Lease by or through attorneys, agents or receivers and will not be answerable for the default or misconduct of any such attorney, agent or receiver selected by it in good faith. The Certificates are executed by the Trustee, not individually or personally but solely as Trustee under the Indenture, in the exercise of the power and authority conferred upon and invested in it as such Trustee. Except for its negligence or willful misconduct, nothing contained in the Indenture or the Lease is to be construed as creating any liability on the Trustee, individually or personally, to perfom~ any covenant either express or implied in the Certificates, the Indenture or the Lease, ali such liability, if any, being expressly waived by the Owners of the Certificates by the acceptance thereof and by each and every person now or hereafter claiming by, through or under the Trustee or the Owners of the Certificates. Insofar as the City is concerned, the Trustee and the Owner of any Certificate and any person claiming by, through or under the Trustee or the Owner of any Certificate may look solely to the Trust Estate described in the Indenture for payment of the interests evidenced by the Certificates. As security for the compensation, expenses, disbursements and indenmification to which it is entitled upon the occurrence of an Event of Default under the Indenture, the Trustee will have a first lien with right of payment prior to payment on account of any principal or interest with respect to the Certificates for such compensation, expenses, disbursements and indenmification. GENERAL INFORMATION CONCERNING THE CITY The City of University City is located in St. Louis County, Missouri, approximately 10 miles northwest of downtown St. Louis. The City is located within a Standard Metropolitan Statistical Area ("SMSA") comprised of the Missouri counties of Franklin, Jefferson, Lincoln, St. Charles, St. Louis, Warren and Washington, the City of St. Louis and Sullivan City in Missouri, and the counties of Bond, Calhoun, Clinton, Jersey, Macoupin, Madison, Monroe and St. Clair in Illinois. For more information on the City, see Appendix./l hereto. FINANCIAL INFORMATION CONCERNING THE CITY Accounting, Budgeting and Auditing Procedures The accounts of the City are organized on the basis of funds and account groups, in conformance with generally accepted accounting principles applicable to governments. The financial statements for governmental fund types are accounted for using the modified accrual basis of accounting, and the pension trust fund is accounted for using the accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when they become measurable and available and expenditures are generally recognized when the related fund liability is incurred. An exception to this rule is that principal and interest on general long-term debt is recogmized when due. Under the accrual basis of accounting used by the pension trust fund, revenues are recognized when earued and expenses are recognized when incurred. The City Council annually engages an independent certified public accountant for the purpose of perfomfing an annual audit of the books of account, financial records, and transactions of the City. -14-