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CAUSE NO. CV-16-0445

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EX PARTE - TIOGA INDEPENDENT SCHOOL DISTRICT and TIOGA INDEPENDENT SCHOOL DISTRICT PUBLIC FACILITY CORPORATION - GRAYSON COUNTY, TEXAS - IN THE DISTRICT COURT 397th JUDICIAL DISTRICT - GRAYSON COUNTY, TEXAS - NOTICE OF PROCEEDINGS AND ORDER IN THE DISTRICT COURT OF GRAYSON COUNTY, TEXAS, 397th JUDICIAL DISTRICT - The Court issues the following Notice of Proceedings and Order pursuant to Chapter 1205 of the Texas Government Code: - NOTICE IS HEREBY GIVEN to: (1) all persons who reside in the territory of the Tioga Independent School District, (2) who own property located within the boundaries of the Tioga Independent School District, (3) are taxpayers of the Tioga Independent School District, or (4) who have a claim or right, title or interest in any property or money to be affected by the authorization of the public securities described below. The persons named in (1), (2), (3), and (4) above shall be referred to as the Interested Parties. The Board of Trustees of the Tioga Independent School District (the Board), acting through the Tioga Independent School District Public Facility Corporation (Issuer), is planning to issue municipal bonds (the Public Securities) to fund the purchase of real property to be improved by the construction of a new high school for the Tioga Independent School District thereon, together with all personal property associated therewith (the Project). - The Tioga Independent School District has determined that the acquisition of land and the construction of a new high school would be beneficial to the inhabitants of the District, and that said property and improvements were needed to perform essential governmental function and necessary to carry out the purposes of the Tioga Independent School District. Therefore, the Issuer has filed an in rem action seeking, among other things, a declaratory judgment validating the Public Securities, and authorizing the Issuer to enter into a contract for the acquisition of land for the construction of a new high school for the Tioga Independent School District, as well as related contracts and transactions that lay the groundwork for the construction of a new high school. Specifically, the Issuer seeks a declaratory judgment stating: - a) that the NOTICE OF INTENT TO CONTRACT FOR TIOGA INDEPENDENT SCHOOL DISTRICT PROJECT which was published in the Whitesboro News-Record on or about August 28, 2015, complied with the requirements of Section 271.004(a) of the Texas Local Government Code in all respects; - b) that the Board id not receive a petition requesting that it order a referendum on the approval of the contracts contemplated by the August 28, 2015 notice within sixty (60) days fo the date of publication of the August 28, 2015 notice, as required by Section 271.004(b) of the Public Property Finance Act; - c) that the NOTICE OF INTENTS TO CONTRACT FOR TIOGA INDEPENDENT SCHOOL DISTRICT PROJECT which was published in the Whitesboro News-Record on or about December 18, 2015, was not a continuation of the original August 28, 2015 notice, but was separate and distinct from the original August 28, 2015 notice and did not operate to void, replace, or waive the August 28, 2015 notice; - d) that the December 18, 2015 notice did not extend the time frame for registered voters of the Tioga Independent School District to file a petition requesting that the Board order a referendum on the question of whether the contracts with a maximum term of 20-years should be approved; - e) that the Issuer is free to enter into contracts as set forth in the uncontested August 28, 2015 notice, including but not limited to, entering into an lease-purchase contract, for the use, purchase or other acquisition of improvements to real property for public school purposes to-wit: a new high school together with all personal property associated therewith, as well as any and all related contracts and transactions for the construction of the high school and is free to issue its bonds to fund the Project; - f) that, pursuant to Section 1205.151 of the Expedited Declaratory Judgment Act, the declaratory judgment shall, as to all matters adjudicated and matter that could have been raised, be forever binding and conclusive against the Attorney General of Texas, the State of Texas, the Issuer, the Board, Tioga Independent School District, and all other interested parties (as describe in Section 1205.041(s) of the Expedited Declaratory Judgment Act), irrespective of whether such parties filed an answer or otherwise appeared, including all persons who: (1) who reside in the territory of Tioga Independent School District, (2), who own property located within the boundaries of the Tioga Independent School District, (3) are taxpayers of Tioga Independent School District, or (4) who have a claim or right, title or interest in any property or money to be affected by the authorization of the public security authorization or the issuance thereof; - g) that, pursuant to Section 1205.151 of the Expedited Declaratory Judgment Act; the Court's judgment in the lawsuit shall constitute a permanent injunction against the institution or prosecution by any person or entity of any new or existing action or proceeding contesting the ability of the Issuer to enter into a contract for the acquisition of land for the construction of a new high school for the Tioga Independent School District, as well as related contracts and transactions that lay the groundwork for the construction of a new high school, and the validity of the bonds that it proposes to issue to fund the construction of a new high school; and - h) that all costs of the Issuer be taxed against any opposing intervenors, except that the costs and expenses of the Attorney General of Texas shall be taxed against the Issuer; and for such other and further relief and orders, at law or in equity, to which the Issuer may show itself justly entitled. - A full description of the lawsuit and the requested relief is contained the Issuer's Petition, Ex Parte Tioga Independent School District Public Facility Corporation, Cause No. CV-16-0445 pending in the 397th District Court of Grayson County, Texas. - IT IS HEREBY ORDERED, and Notice is hereby given, that any Interested Party may appear for hearing and trial in the courtroom of the Judicial District Court of Grayson County, Texas at 10:00 a.m. on March 28, 2016, which is the first Monday after the expiration of 20 days from the date of this Order. Any Interested Party may become a named party to this action by filing an answer with this Court at or before the time set for trial. After that time, Interested Parties may become named parties only by intervention with leave of court. - IT IS FURTHER ORDERED that, at such hearing and trial, any Interested Parties desiring to do so may appear, and the Attorney General of Texas shall appear, and show cause why the prayers of the Petition of the Issuer filed in this action and generally described above should not be granted and the proceeding and the securities validated and confirmed as requested. Be on further notice that, at such time, place, and date, the Court will proceed to full and final hearing on the merits of all matters and prayers within the Issuer's Petition. - SO ORDER. - DATE: March 7, 2016 - Signed On March 7, 2016 - /s/ Brian Gary - PRESIDING JUDGE

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