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<br />City of San Marcos/Guadalupe-Blanco River Authority <br />Water Treatment Facilities <br /> <br />Service Contract <br />Article XIII - Security for Performance <br /> <br />good faith assessment of the damages the City has suffered as a result of such breach, and <br />(2) the Authority has had an opportunity at a meeting scheduled by the City Manager to be <br />held not earlier than 15 days nor later than 30 days following delivery of such notice, to <br />present to the City Manager evidence disputing the City's assertion of material breach or <br />assessment of damages. Notice to the Authority of a material breach hereof shall be given, <br />except that following any event of voluntary bankruptcy or involuntary bankruptcy by the <br />Authority as described in Section 11.2, no such notice shall be required to be given to the <br />Authority, nor shall the giving of such notice be a condition to the City's drawing rights under <br />the Letter of Credit pursuant to this subsection. <br />(D) Effect of Final Determination of Damages. In the event that subsequent <br />to any drawing on the Letter of Credit it is determined by any court of competent jurisdiction in <br />a [mal non-appealable decision that such drawing to any extent was not permitted hereunder, <br />the City shall pay the amount wrongfully drawn to the Authority together with interest thereon <br />at the Overdue Rate calculated from the date of the drawing to the date of payment to the <br />Authority. <br /> <br />SECTION 13.2. <br /> <br />COST OF PROVIDING SECURITY FOR PERFORMANCE. <br /> <br />(A) Inclusion in Service Fee. The cost and expense of obtaining and <br />maintaining the Letter of Credit required under this Article as security for the performance of <br />the Authority's obligations hereunder shall be initially borne by the Authority with subsequent <br />reimbursement from the City as described in Section 10.4. <br />(B) Release of Security. The City shall have the right at any time to release <br />the Authority from its obligation to provide the Letter of Credit required under this Article. <br />Upon any such release, the Pass-Through Cost Component for the Letter of Credit shall cease. <br /> <br />86 <br />