Ord 2019-003/authorizing the issuance of the City of San Marcos Special Assessment Revenue Bonds, Series 2018 (Trace Public Improvement District); approving aand authorizing an Indenture of Trust, a Bond Purchase Agreement, an Offering Memorandum, a

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Section 13.2. Other Obligations or Other Liens; Refunding Bonds; Additional Bonds. (a) The City reserves the right to issue obligations under other indentures, assessment ordinances, or similar agreements or other obligations which do not constitute or create a lien on the Trust Estate and are not payable from Pledged Revenues. (b) Other than Refunding Bonds and Additional Bonds, the City will not create or voluntarily permit to be created any debt, lien or charge on the Trust Estate, and will not do or omit to do or suffer to be done or omit to be done any matter or things whatsoever whereby the lien of this Indenture or the priority hereof might or could be lost or impaired; and further covenants that it will pay or cause to be paid or will make adequate provisions for the satisfaction and discharge of all lawful claims and demands which if unpaid might by law be given precedence over or any equality with this Indenture as a lien or charge upon the Pledged Revenues or Pledged Funds; provided, however, that nothing in this Section shall require the City to apply, discharge, or make provision for any such lien, charge, claim, or demand so long as the validity thereof shall be contested by it in good faith, unless thereby, in the opinion of counsel to the Trustee, the same would endanger the security for the Bonds. (c) Notwithstanding any contrary provision of this Indenture, the City shall not issue additional bonds, notes or other obligations under this Indenture, secured by any pledge of or other lien or charge on the Pledged Revenues or other property pledged under this Indenture, other than Additional Bonds and Refunding Bonds. The City reserves the right to issue Refunding Bonds, the proceeds of which would be utilized to refund all or any portion of the Outstanding Bonds or Outstanding Refunding Bonds and to pay all costs incident to the Refunding Bonds, as authorized by the laws of the State. (d) The City reserves the right to issue Additional Bonds for any purpose permitted by the PID Act and in accordance with the conditions set forth below: (i) A City Representative shall certify that the City is not in default in the performance and observance of any of the terms, provisions and conditions applicable to it contained in the Indenture. (ii) The Trustee shall receive a certificate from the Administrator certifying that the Developer is not delinquent on any Assessments, other than any Assessments being contested in good faith. (iii) The Trustee shall receive a certificate from the City Representative certifying that (1) the Developer is not delinquent on any ad valorem taxes, fees or any other funds or commitments to the City, (2) the City is not in default in the performance and observance of any of the terms, provisions and conditions applicable to the City contained in this Indenture, (3) the City is in material compliance with its continuing disclosure agreements entered into in connection with all Outstanding Bonds, Additional Bonds and any other applicable City obligations, pursuant to Rule 15c2-12 of the Securities Exchange Commission. 'TOGA