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REGISTERED OWNER: <br />PRINCIPAL AMOUNT: <br />THE CITY OF SAN MARCOS, IN HAYS AND CALDWELL COUNTIES, TEXAS <br />(the "City"), being a political subdivision of the State of Texas, for value received, hereby promises <br />to pay, from the sources described herein, to the registered owner specified above, or registered <br />assigns (hereinafter called the "Registered Owner"), the principal amount specified above, and to pay <br />interest thereon, from the Date of Closing set forth herein on the balance of said principal amount <br />from time to time remaining unpaid on February 15, 2009 and semiannually thereafter on each <br />February 15 and August 15 to the final maturity date specified abo? ?? the date of redemption prior <br />to maturity, at the rate per annum set forth above provided. The unpa?. ??incipal of this Bond shall <br />have a final maturity date of August 15, 2020, but shall be paid in inr .aiul_ `? on August 15 in the <br />years and in the amounts set forth in the table below: <br /> Principal Pr' ?cipal <br />Year Installments `ear ?_.??allments <br />2009 ' 01 <br />2010 ? , ?6 <br />2011 2?? <br />2012 2018 <br />2013 ?9 <br />2014 2V ? <br />THE PRINCIPAL OF AND INrI, 'FST ON his Bond are payable in lawful money of the <br />United States of America, without P??hange ? ?lle?+ _on charges. The principal of this Bond shall <br />be paid to the Registered Owner' .cre? ion prey ,location and surrender of this Bond at maturity or <br />upon the date fixed f? ??? reeler ?tion ply ?? naturity, at (the "Paying <br />Agent/Registrar") ?t their oft??;e or ? ?, .Went in ,Texas (the "Designated <br />Payment/TransfP ??ce"). The pad ??+ ?f interest on this Bond shall be made by the Paying <br />Agent/Registr . to t?? °?istered Ownc? hereof on each interest payment date by check or draft, <br />dated as of su, ?l interest 1 ?nent date, drawn by the Paying Agent/Registrar on, and payable solely <br />from, funds of the City requ. ' hy'.he ordinance authorizing the issuance of this Bond (the "Bond <br />Ordinance") to be on deposit nth the Paying Agent/Registrar for such purpose as hereinafter <br />provided; and such check or daft shall be sent by the Paying Agent/Registrar by United States mail, <br />first-class postage prepaid, on each such interest payment date, to the Registered Owner hereof, at <br />its address as it appeared on the close of business on the last day of the month next preceding each <br />such date (the "Record Date") on the registration books kept by the Paying Agent/Registrar (the <br />"Registration Books"). In addition, interest may be paid by such other method, acceptable to the <br />Paying Agent/Registrar, requested by, and at the risk and expense of, the Registered Owner. In the <br />event of anon-payment of interest on a scheduled payment date, and for 30 days thereafter, a new <br />record date for such interest payment (a "Special Record Date") will be established by the Paying <br />Agent/Registrar, if and when funds for the payment of such interest have been received from the City. <br />Notice of the Special Record Date and of the scheduled payment date of the past due interest (which <br />SAN MARCOSI CO Rfdg Bonds2008:Ordinance