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D. The City hereby acknowledges and consents to the County's assignment, pledge and transfer of <br />the Pledged Tax Increment from the San Marcos Zone to TxDOT to secure and make payment of the AFA <br />Obligations provided such revenues are used to fund costs of the financing, acquisition, and construction of the <br />Project. For so long as any of the AFA Obligation related to the Project is outstanding and unpaid, the City <br />covenants and agrees to annually assess, levy and collect its ad valorem tax on property within the San Marcos Zone <br />and not to terminate the San Marcos Zone. Nothing in this Agreement requires the City Council to levy a tax on <br />taxable property in the City at any minimum rate. The obligations of the City to the County are subject to the rights <br />of any of the holders of bonds, notes or other obligations that have heretofore or are hereafter issued by the City that <br />are payable from or secured by a general levy of ad valorem taxes throughout the taxing jurisdiction of the City. <br />E. The City hereby agrees that (i) the City shall deposit the Tax Increment into the Tax Increment <br />Account upon receipt and shall remit, without counterclaim or offset, the Pledged Tax Increment to the County on a <br />basis on the first business day of ; and (ii) the City shall not seek to declare this <br />Agreement void or ineffective, and shall not seek to rescind the Adoption Ordinance or the TRZ Dedication <br />Ordinance (or modify the aforementioned ordinances in any way that would adversely affect the County's <br />assignment, pledge and transfer of the Pledged Tax Increment from the San Marcos Zone) or adopt any other <br />ordinance or order or take any other action to remove or rescind the Pledged Tax Increment from the San Marcos <br />Zone, until the date on which all amounts associated with the AFA Obligation is paid in full by the County to <br />TxDOT and the AFA Obligation is no longer outstanding. <br />F. The obligations of the City to make the payments set forth in this Agreement from the Tax <br />Increment shall be absolute and unconditional, and until such time as the AFA Obligation incurred as contemplated <br />in this Agreement has been fully paid or provision for payment thereof shall have been made in accordance with its <br />terms, the City will not suspend or discontinue any payments provided for in this Agreement, will not terminate the <br />San Marcos Zone and will not seek to terminate this Agreement for any reason whatsoever. <br />III. AGREEMENTS BY THE COUNTY <br />The County hereby acknowledges, consents to, and agrees as follows: <br />A. The County shall diligently pursue the development of the Project with TxDOT for the benefit of <br />the residents of the City and the County. The County agrees further to periodically report on progress in the <br />advancement of the Project to the City Council. <br />B. For so long as any of the AFA Obligation related to the Project is outstanding and unpaid, the <br />County covenants and agrees to annually assess, levy and collect its ad valorem tax on property within the Hays <br />County Zone and not to terminate the Hays County Zone. Nothing in this Agreement requires the Commissioners <br />Court to levy a tax on taxable property in the County at any minimum rate. <br />C. The County shall not seek to rescind the Adoption Order (or modify the order in any way that <br />would adversely affect the County's assignment, pledge and transfer of the revenue from the Hays County Zone to <br />satisfy the AFA Obligation) or adopt any other resolution or order or take any other action to remove or rescind <br />revenue from the Hays County Zone until the date on which all amounts associated with the AFA Obligation are <br />paid in full by the County to TxDOT, the AFA Obligation is no longer outstanding, and the City has no further <br />obligation to remit Pledged Tax Increment revenues to the County pursuant to this Agreement. <br />D. The obligations of the County to make the payments set forth in the AFA from the Hays County <br />Zone revenues shall be absolute and unconditional, and until such time as the AFA Obligation incurred as <br />contemplated in this Agreement has been fully paid or provision for payment thereof shall have been made in <br />accordance with its terms, the County will not suspend or discontinue any payments provided for under the AFA and <br />will not terminate the Hays County Zone for any reason whatsoever. <br />E. The obligations under the AFA, including without limitation the amount owed and the scope of <br />the Project, shall not, except with respect to the project budget pursuant to Paragraph 12.F, be in any way modified <br />or amended by the County and TxDOT without the consent of the City. <br />-3- <br />