Res 2018-172/amending and restating the Trace Public Improvement District Financing Agreement

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Section 2.02. Apportionment and Levy of Assessments The City has levied Special Assessments on the Property in accordance herewith and with the 2018 SAP (as such plan is amended from time to time)and the Assessment Ordinance as approved by the City Council in accordance with Article IV hereof. The City's apportionment and levy of Special Assessments has been made in accordance with the PID Act. Section 2.03. Collection of Assessments (a) Subject to the terms and conditions of this Agreement, the City covenants and agrees that it shall, as authorized by the Pill Act and other applicable law, continuously collect or cause to be collected Special Assessments levied pursuant to the Original Assessment Ordinance and Additional Assessment Ordinance in accordance with the 2018 SAP during the term of this Agreement in the manner and to the maximum extent permitted by applicable law and subject to Section 2.06(b) of this Agreement. The City covenants and agrees that to the extent permitted by applicable law and Section 2.06(b) of this Agreement, it will not permit a reduction, abatement, or exemption in the Special Assessments due on any portion of the Property until the Major Improvement PID Bonds related to that particular portion of the Property are no longer outstanding, whether as a result of payment in full, defeasance, or otherwise. The City shall use best efforts to collect the Special Assessments consistent with the City's policies and standard practices applicable to the collection of City ad valorem taxes and assessments. (b) It is hereby acknowledged that Special Assessments can be used for the following purposes: CO prior to or after completion of the applicable Public Improvements, but prior to the issuance of Major Improvement PID Bonds for those Public Improvements, Owner will be reimbursed for Actual Costs associated with those Public Improvements from Special Assessments collected by the City and held by the City pursuant to the Amended Reimbursement Agreement and (ii) after Major Improvement PID Bonds are issued with respect to any given completed Public Improvements,the Special Assessments will be used first to secure such Major Improvement PID Bonds and second, to the extent any such Special Assessments are remaining after payments are made on the Major Improvement PID Bonds, to reimburse Owner for any Actual Costs not reimbursed by the Major Improvement PID Bonds. Any reimbursement obligation to Owner under the Amended Reimbursement Agreement or as provided above will be subordinate to payment of the applicable Major Improvement PID Bonds. (c) Notwithstanding anything to the contrary contained herein or in the 2018 SAP, once Major Improvement PID Bonds have been issued the Special Assessment Revenues collected annually from the Property will be deposited in the Pledged Revenue Fund and thereafter transferred in the priority as set forth in the Indenture. (d) Further notwithstanding anything to the contrary contained herein, the City covenants and agrees to use best efforts to contract with the Hays County Tax Assessor's office for the collection of the Special Assessments such that the Special Assessments will be included on the ad valorem tax bill(s) for the Property and will be collected as part of and in the same manner as ad valorem taxes. 5