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• <br />Additional Covenants <br />The city hereby further covenants as follows: <br />(a) That it has the lawful power to pledge the revenues supporting the Bonds and <br />has lawfully exercised said power under the Constitution and laws of the State of <br />Texas, including said power existing under Article 717k, Revised Civil Statutes of the <br />State of Texas, as amended; that the Bonds issued hereunder shall be ratably secured <br />by said pledge of income, in such manner that one Bond shall have no preference over <br />any other Bond. <br />(b) That, other than for the payment of the Bonds herein authorized, the rents, <br />revenues and income of the System have not in any manner been pledged to the payment _ <br />of any debt or obligations of the City or of the System. <br />(c) That, so long as any of the Bonds or Additional Bonds remain unpaid, the City <br />will not sell or encumber the System or any substantial part thereof, and that it will <br />not encumber the revenues thereof unless such encumbrance is made pursuant to this <br />Ordinance or is junior and subordinate to all of the provisions of this Ordinance. <br />(d) That no free service of, the System shall be allowed, and should the City or <br />any of its agencies or instrumentalities make use of the services and facilities of <br />the System, payment of the reasonable value thereof shall be made by the City out of <br />funds from sources other than the revenues and income of the System. <br />(e) To the extent that it legally may, the City further covenants and agrees <br />that, so long as any of the Bonds or any interest thereon is outstanding, no franchise <br />shall be granted for the installation or operation of any competing system, that the <br />City will prohibit the operation of any such system other than those owned by the City <br />and the operation of any such system by anyone other than the City is hereby <br />prohibited. <br />Special Obligations <br />The Bonds are special obligations of the City payable from the pledged revenues <br />and the registered owner thereof shall never have the right to demand payment thereof <br />out of funds raised or to be raised by taxation. <br />o~ <br />