O-1985-1469 - Laserfiche WebLink

Browse Search

- e provide maximum flexibility with respect to the reserve fund to be provided for any Additional Bonds which may be issued hereafter and the foregoing provisions shall be liberally construed in order to achieve that objective without mate- rially prejudicing the rights and interests of the owners of any Bonds and Additional Bonds at the time outstanding. Section 17: That the City shall maintain the System in good condition and operate the same in an effi- cient manner and at a reasonable cost. So long as any of the Bonds are outstanding, the City agrees to maintain insurance on the System, for the benefit of the registered owner or owners of the Bonds, of a kind and in an amount which usually would be carried by private companies engaged in a similar type of business in the same area. This Ordinance shall not be construed as requiring the City to expend any funds which are derived from sources other than the operation of the System, but nothing herein shall be construed as preventing the City from doing so. Section 18: That the City shall keep proper books of records and accounts, separate from all other records and accounts, in which complete and correct entries shall be made of all transactions relating to the System. Upon written request made not more than 60 days following the close of the fiscal year, the City shall furnish to any registered owner of any of the Bonds, complete financial statements of the System in reasonable detail covering such fiscal year, certified by the City's Auditor. Any regis- tered owner or owners of 25% in principal amount of the Bonds at the time outstanding shall have the right at all reasonable times to inspect the System and all records, accounts and data of the City relating thereto. Section 19: That the City hereby further cove- nants as follows: (a) That it has the lawful power to pledge the revenues supporting the Bonds and has lawfully exercised said power under the Constitution and laws of the State of Texas, including said power existing under Articles 1111 to 1118, both inclusive, Revised Civil Statutes of the State of Texas, as amended; that the Bonds issued hereunder shall be ratably secured by said pledge of income, in such manner that one Bond shall have no preference over any other Bond. (b) That, other than for the payment of the Bonds herein authorized, the rents, revenues and income of the System have not in any manner been pledged to the payment of any debt or obligations of the City or of the System. (c) That, so long as any of the Bonds or Addi- tional Bonds remain unpaid, the City will not sell or encumber the System or any substantial part thereof, and that it will not encumber the revenues thereof unless such encumbrance is made pursuant to Section 16 hereof or is junior and subordinate to all of the provisions of this Ordinance. (d) That no free service of the System shall be allowed, and should the City or any of its agencies or instrumentalities make use of the services and facilities of the System, payment of the reasonable value thereof shall be made by the City out of funds from sources other than the revenues and income of the System. 002RDRAW/193B01 -14-