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<br />e
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<br />(e) Operation of Svstem: No Free Service. It shall continuously and efficiently operate the
<br />System and maintain the System in good condition, repair, and working order, all at reasonable cost. No free
<br />service of the System shall be allowed, and should the City or any of its agencies or instrumentalities, lessees. or
<br />concessionaires make use of the services and facilities of the System, payment monthly of the standard retail
<br />price of the services provided shall be made by the City or any of its agencies or instrumentalities, lessees, or
<br />concessionaires out of funds from sources other than the revenues of the System. unless made from surplus Net
<br />Revenues.
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<br />(t) Further Encumbrance. Other than for the payment of the Parity Bonds, the rents, revenues,
<br />and income of the System have not in any manner been pledged to the payment of any debt or obligations of the
<br />City or of the System: and it shall not additionally sell or encumber the Net Revenues in any manner, except as
<br />pennitted in the Parity Bonds Ordinances in connection with Additional Bonds, unless said encumbrance is made
<br />junior and subordinate in all respects to the liens, pledges, covenants, and agreements of the Parity Bonds
<br />Ordinances: but the right of the City to issue revenue bonds payable from a subordinate lien on the surplus Net
<br />Revenues is specifically recognized and retained.
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<br />(g) Sale or DisPOsal of Property. It shall not sell, convey, mortgage, encumber. lease, or in any
<br />manner transfer title to, or dedicate to other use, or otherwise dispose of the System. or any significant or
<br />substantial part thereof; provided, however. that whenever the City deems it necessary to dispose of any other
<br />property, machinery, fixtures, or equipment, or dedicate such property to other use, it may do so either when it
<br />has made arrangements to replace the same or provide substitutes therefor, or it is detennined by resolution of
<br />the City Council that no such replacement or substitute is necessary.
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<br />(h) Insurance. It agrees to maintain insurance on the System, for the benefit of the registered
<br />owner or owners of the Parity Bonds of a kind and in an amount which usually would be carried by private
<br />companies engaged in a similar type of business in the same area.
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<br />(i) Records and Audits. It shall keep proper books and records and accounts, separate from all
<br />other records and accounts, in which complete and correct entries shall be made of all transactions relating to the
<br />System. Upon written request made not more than 60 days following the close of the fiscal year, the City shall
<br />furnish to any holder of any Parity Bonds, complete financial statements of the System in reasonable detail
<br />covering such fiscal year, certified by the City's Auditor. Any holders of 25% in principal amount of the Parity
<br />Bonds at the time outstanding shall have the right at all reasonable times to inspect the System and all records,
<br />accounts, and data of the City relating thereto.
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<br />CD Governmental A~encies. It has or will obtain and keep in full force and effect all franchises,
<br />pennits, authorization, and other requirements applicable to or necessary with respect to the acquisition,
<br />construction, equipment. operation, and maintenance of the System, and it will comply with all of the tenns and
<br />conditions of any and all franchises. pennits and authorizations applicable to or necessary with respect to the
<br />System.
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<br />(k) No Competition. To the extent it legally may. it will not operate, grant any franchise. or
<br />penn it the acquisition. construction, or operation of, any facilities which would be in competition with the
<br />System, and to the extent that it legally may, the City will prohibit any such competing facilities.
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<br />SECTION 17. AMENDMENT OF ORDINANCE. (a) The holders of the Parity Bonds
<br />aggregating in principal amount 51 % of the aggregate principal amount of then outstanding Parity Bonds shall
<br />have the' right from time to time to approve any amendment to this Ordinance which may be deemed necessary
<br />or desirable by the City: provided, however. that without the consent of the holders of all of the Parity Bonds at
<br />the time outstanding, nothing herein contained shall pennit or be construed to pennit the amendment of the tenns
<br />and conditions in this Ordinance or in the Parity Bonds so as to:
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<br />(I) Make any change in the maturity of the outstanding Parity Bonds:
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