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Section 7.08. PARTIAL INVALIDITY. If any one or more of the covenants or <br />agreements or portions thereof provided in this Second Supplement on the part of the City should <br />be determined by a court of competent jurisdiction to be contrary to law, then such covenant or <br />covenants, or such agreement or agreements, or such portions thereof, shall be deemed severable <br />from the remaining covenants and agreements or portions thereof provided in this Second <br />Supplement and the invalidity thereof shall in no way affect the validity of the other provisions <br />of this Second Supplement or of the Bonds, but the Owners of the Bonds shall retain all the <br />rights and benefits accorded to them hereunder and under any applicable provisions of law. <br />Section 7.09. CONTINUING DISCLOSURE UNDERTAKING. (a) Annual <br />Reports. The City shall provide annually to the MSRB, in an electronic format as prescribed by <br />the MSRB, within the time period as determined by the Pricing Officer in the Pricing Certificate, <br />financial information and operating data with respect to the City as determined by the Pricing <br />Officer at the time the Bonds are sold. The Pricing Certificate shall specify such financial <br />information and operating data of the general type included in the final Official Statement <br />authorized by Section 13 of this Second Supplement. Any financial statements to be so <br />provided shall be (1) prepared in accordance with the accounting principles described in Exhibit <br />"B" hereto, or such other accounting principles as the City may be required to employ from time <br />to time pursuant to state law or regulation, and (2) audited, if the City commissions an audit of <br />such statements and the audit is completed within the period during which they must be <br />provided. If the audit of such financial statements is not complete within such period, then the <br />City shall provide unaudited financial statements within such period, and audited financial <br />statements for the applicable fiscal year to the MSRB, when and if the audit report on such <br />statements become available. <br />If the City changes the fiscal year, the City will notify the MSRB of the change (and of <br />the date of the new fiscal year end) prior to the next date by which the City otherwise would be <br />required to provide financial information and operating data pursuant to this Section. <br />The financial information and operating data to be provided pursuant to this subsection <br />may be set forth in full in one or more documents or may be included by specific reference to <br />any document that is available to the public on the MSRB's internet web site or filed with the <br />SEC. All documents provided to the MSRB pursuant to this subsection shall be accompanied by <br />identifying information as prescribed by the MSRB. <br />(b) Certain Event Notices. The City shall notify the MSRB, in an electronic format as <br />prescribed by the MSRB, in a timely manner not in excess of ten business days after the <br />occurrence of the event, of any of the following events with respect to the Bonds: <br />A. Principal and interest payment delinquencies; <br />B. Non-payment related defaults, if material within the meaning of the federal <br />securities laws; <br />C. Unscheduled draws on debt service reserves reflecting financial difficulties; <br />28 <br />SanMARCOS\ELectricUliLSysRevBonds\2021: 2116uppOrdmiice <br />