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<br />I <br /> <br />Section XXI. Sale, Lease or other Encumbrance of System. The <br /> <br /> <br />City hereby covenants, binds and obligates itself not to mortgage <br /> <br />or otherwise encumber the System or any part thereof, except as <br /> <br />otherwise herein provided, or sell, lease or in any manner dispose <br /> <br />of the System, or any part thereof, including any and all extensions <br /> <br /> <br />and additions that maybe made thereto, until all Bonds herein <br /> <br /> <br />authorized to be issued sh~ll have been paid in full as to both <br /> <br /> <br />principal and interest (provided that this covenant shall not be <br /> <br /> <br />construed to prevent .the disposal by the City of property which in <br /> <br /> <br />its judgment has become inexpedient to use in connection with the <br /> <br /> <br />System when other property of equal value has been substituted <br /> <br />therefor). <br /> <br />Section XXII. Competition. That so far as it legally may, <br /> <br />the City covenants and agrees, for the protection and security of <br /> <br />the Bonds and the holders thereof. from time to time, that it will <br /> <br />not grant a franchise for the operation of any competing water <br /> <br />and/or sewer system in the City of San Marcos, until all Bonds <br /> <br />issued hereunder shall have been retired. <br /> <br />Section XXIII. Further Covenants. The City further covenants <br /> <br />and agrees by and through this Ordinance as follows: <br /> <br />(a) That it has the lawful power to pledge the revenues <br /> <br />supporting this issue of Bonds and has lawfully exercised said <br /> <br /> <br />power under the Constitution and laws of the State of Texas, in- <br /> <br /> <br />cluding power existing under Articles 1111 to ll18~ both inclusive, <br /> <br /> <br />and Article 111la, 1925 Revised Civil Statutes of Texas, with amend- <br /> <br /> <br />ments thereto, and by authority of a vote of the qualified electors <br /> <br />of said City voting at an election held on September 27, 1966; that <br /> <br /> <br />the Bonds issued hereunder shall be ratably secured in such manner <br /> <br />that no one Bond shall have preference over any other Bond of said <br /> <br />issue. <br /> <br />I <br /> <br />I <br /> <br />(b) That other than for the payment of the Bonds hereby <br /> <br />issued, and the outstanding Waterworks and Sewer Improvement and <br /> <br />Extension Revenue Bonds, Series 1951, dated January 1, 1951, and <br /> <br />- 21 - <br />