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(b) Construction of Terms. If appropriate in the context of this First Supplement, words
<br />of the singular number shall be considered to include the plural, words of the plural number shall
<br />be considered to include the singular, words of the masculine, feminine, or neuter gender shall be
<br />considered to include the other genders, and words importing persons shall include firms,
<br />associations, and corporations.
<br />Section 1.02. ESTABLISHMENT OF FINANCING PROGRAM AND ISSUANCE OF
<br />PARITY DEBT. (a) First Supplement. By adoption of the Master Ordinance, the City has
<br />established the City of San Marcos, Texas Pass-Through Toll Revenue Financing Program for the
<br />purpose of enabling the City to provide for the financing of projects authorized by the Enabling Act
<br />and other applicable provisions of State law pursuant to which the City may issue and enter into
<br />obligations, including bonds and other types of obligations, secured by and payable from a pledge
<br />of and lien on all or part of the Security and, pursuant to Section 5 of the Master Ordinance, a pledge
<br />of a direct annual ad valorem tax on all taxable property in the City. This First Supplement provides
<br />for the authorization, form, characteristics, provisions of payment and redemption, and security of
<br />the Bonds. This First Supplement is subject to the terms of the Master Ordinance and the terms of
<br />the Master Ordinance are incorporated herein by reference and as such are made a part hereof for
<br />all purposes.
<br />(b) Bonds Are Parity Debt. As required by Section 7 of the Master Ordinance governing
<br />the issuance of Parity Debt such as the Bonds, the City hereby finds that, upon the issuance of the
<br />Bonds, the Security, taking into account the Tax Pledge authorized in Section 2.01(b) of this First
<br />Supplement, will be sufficient to meet the financial obligations relating to the Financing Program,
<br />including Security, taking into account the Tax Pledge authorized in Section 2.01(b) of this First
<br />Supplement, in amounts sufficient to satisfy the Annual Debt Service Requirements of the Financing
<br />Program. The Bonds are hereby declared to be Parity Debt under the Master Ordinance.
<br />Section 1.03. FIRST SUPPLEMENT TO CONSTITUTE A CONTRACT; EQUAL
<br />SECURITY. In consideration of the acceptance of the Bonds by those who shall hold the same
<br />from time to time, this First Supplement shall be deemed to be and shall constitute a contract
<br />between the City and the Owners from time to time of the Bonds, and the pledge made in this First
<br />Supplement by the City and the covenants and agreements set forth in this First Supplement to be
<br />performed by the City shall be for the equal and proportionate benefit, security, and protection of
<br />all Owners from time to time of the Bonds, without preference, priority, or distinction as to security
<br />or otherwise of any of the Bonds authorized hereunder over any of the other Bonds by reason of time
<br />of issuance, sale, or maturity thereof or otherwise for any cause whatsoever, except as expressly
<br />provided in or permitted by this First Supplement and the Master Ordinance.
<br />Section 1.04. LIMITATION OF BENEFITS WITH RESPECT TO THIS FIRST
<br />SUPPLEMENT. With the exception of the rights or benefits herein expressly conferred, nothing
<br />expressed or contained herein or implied from the provisions of this First Supplement or the Bonds
<br />is intended or should be construed to confer upon or give to any person other than the City, the
<br />Owners, and the Paying Agent/Registrar, any legal or equitable right, remedy, or claim under or by
<br />reason of or in respect to this First Supplement or any covenant, condition, stipulation, promise,
<br />agreement, or provision herein contained. This First Supplement and all of the covenants,
<br />SAN MARCOS 2008: FustSupplementalOrdinance 2
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