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<br />homeowners, and xeriscaping will be utilized by the <br />developer of property within the District. <br /> <br />Section 1.02. Interpretations. The headings of the <br />articles and sections of this Amended Agreement have been <br />inserted for convenience of reference only and are not to be <br />considered a part hereof and shall not in any way modify or <br />restrict any of the terms or provisions hereof. This Amended <br />Agreement and all the terms and provisions hereof shall be <br />liberally construed to effectuate the purposes set forth <br />herein. <br /> <br />ARTICLE TWO <br /> <br />COMPLIANCE WITH CITY UTILITY DISTRICT ORDINANCE <br /> <br />Section 2.01. General Statement. Except as otherwise <br />provided herein, the consent to the creation of the District <br />granted by the Ci ty is subj ect to, and the creation and <br />operation of the District shall be in accordance with, the <br />utility District Ordinance, Ordinance No. 1986-85, adopted by <br />the ci ty Council of the City of San Marcos as amended on <br />February 9, 1987, a true and correct copy of both the <br />Ordinances being attached hereto as Exhibit Band <br />incorporated herein by reference. The terms and conditions <br />of the amended Utility District Ordinance are made a part of <br />this Amended Agreement for all purposes to the extent <br />permitted by law. <br /> <br />Section 2. 02. Exemptions. Based upon passage of the <br />amended Utility District Ordinance, the District has been <br />granted the authority to issue bonds to finance drainage <br />improvements within and outside the boundaries of the <br />District to the extent permitted by this Amended Agreement <br />and as approved by the Commission. Further, the District <br />shall conform to the standards of City ordinances as provided <br />in this Amended Agreement; however, the District shall not be <br />bound by the procedural aspects of City ordinance <br />requirements. The District also shall submit all proposed <br />bond issues to the City as provided in Section 3.02 herein. <br /> <br />Section 2.03. Consul tant Fees. Notwithstanding any <br />provision in the amended Utility District Ordinance to the <br />contrary, proceeds of the District I s bonds may be used for <br /> <br />-6- <br />