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<br />e
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<br />(e) Operation of System; No Free Service. It shall continuously
<br />and efficiently operate the System and maintain the System in good
<br />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
<br />agencies or instrumentalities, lessees, or concessionaires make use of the
<br />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
<br />agencies or Instrumentalities, lessees, or concessionaires out of funds from
<br />sources other than the revenues of the System, unless made from surplus
<br />Net Revenues.
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<br />(f) Further Encumbrance. Other than for the payment of the
<br />Parity Bonds, the rents, revenues, and income of the System have not in
<br />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
<br />Uevenues in' any manner, except os permitted in the Parity Bonds
<br />Ordinances in connection with Additional Bonds, unless said encumbrance is
<br />mude junior and subordinate in all respects to the liens, pledges, cov-
<br />enants, and agreements of the Parity Bonds Ordinances; but the .right of
<br />the City to issue revenue bonds payable from a subordinate lien on the
<br />surplus Net Revenues is specifically recognized and retained.
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<br />(g) Sale or Disposal of Property. It shall not sell, convey,
<br />mOl.tgage, encumber, lease, or in any manner transfer title to, or dedicate
<br />to other use, or otherwise dispose of the System, or any significant or
<br />substantial port thereof; provided, however, that whenever the City deems
<br />it necessary to dispose of any other property, machinery, fixtures, or
<br />equipment, or dedicate such property :to other use, it may do so either
<br />when it has made' arrangements to replace the same or provide substitutes
<br />therefor, or it is determined by resolution of the City Council that no such
<br />replacement or s,ubsUtute is necessary.
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<br />(h) Insurance. It agrees to maintain insurance on the System,
<br />for the benefit of the registered owner or owners of the Parity Bonds of a
<br />kind and in an amount which usually would be carried by private companies
<br />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
<br />and accounts, separate from all other records and accounts, in which
<br />complete and correct entries shall be made of all transactions relating to the
<br />System. Upon written request mode not more than 60 days following the
<br />close of the fiscal year, the City sholl furnish to OilY holder of any Parity
<br />Bonds, complete financial statements of the System in reasonable detail
<br />covering such fiscal year, certified by the City's Auditor. Any holders of
<br />25% in principal amount of the Parity Bonds at the time outstanding shall
<br />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 />(j) Governmental Agencies. It has or will obtain and keep in full
<br />force and effect all franchises, permits, authorization, and other
<br />requirements applicable to or necessary with respect to the acquisition,
<br />construction, equipment, operation, and maintenance of the System, and it
<br />will comply with all of the terms and conditions of any and all franchises,
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