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<br />Board for repairing the property damaged or replacing the property destroyed; provided, however, that if said
<br />insurance proceeds and other funds are insufficient for such purpose, then said insurance proceeds pertaining to the
<br />System shall be deposited in a special and separate trust fund, at an official depository of the Authority, to be
<br />designated the Insurance Account. The Insurance Account shall be held until such time as other funds become
<br />available which, together with the Insurance Account, will be sufficient to make the repairs or replacements
<br />originally required.
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<br />(ii) The annual audit hereinafter required may contain a section commenting on whether or not the
<br />Board has complied with the requirements of this Section with respect to the maintenance of insurance,
<br />and shall state whether or not all insurance premiums upon the insurance policies to which reference is
<br />made have been paid.
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<br />(h) Records. The Board shall keep proper books of record and account in which full, true, proper, and
<br />correct entries will be made of all dealings, activities, and transactions relating to the System, the Pledged Revenues,
<br />and the Funds created pursuant to this Resolution, and all books, documents, and vouchers relating thereto shall at
<br />all reasonable times be made available for inspection upon request of any Bondholder or customer of the Authority.
<br />To the extent consistent with the provisions of this Resolution, the Board shall keep its books and records in a
<br />manner conforming to standard accounting practices as usually would be followed by private corporations owning
<br />and operating a system similar to the System, with appropriate recognition being given to essential differences
<br />between municipal and corporate a'ccounting practices.
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<br />(i) Audits. After the close of each fiscal year, an audit will be made of the books and accounts relating to
<br />the System and the Pledged Revenues by an independent certified public accountant or an independent frrm of
<br />certified public accountants. The audit shall include a schedule of the deposits made to the various funds created by
<br />this Resolution. The annual audit reports shall be open to the inspection of the Bondholders and their agents and
<br />representatives at all reasonable times.
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<br />(j) Governmental A2encies. It will comply with all of the terms and conditions of any and all franchises,
<br />permits, and authorizations applicable to or necessary with respect to the System, and which have been obtained
<br />from any governmental agency; and the Board has or will obtain and keep in full force and effect all franchises,
<br />permits, authorization, and other requirements applicable to or necessary with respect to the acquisition,
<br />construction, equipment, operation, and maintenance of the System.
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<br />(k) No Comoetition. It will not operate, or grant any franchise or permit for the acquisition, construction,
<br />or operation of, any facilities which would be in competition with the System, and to the extent that it legally may,
<br />the Authority will prohibit any such competing facilities.
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<br />9.02 Tax Covenants. (a) General. The Authority covenants to take any action to maintain, or refrain
<br />from any action which would adversely affect, the treatment of the Bonds as obligations described in section 103 of
<br />the Internal Revenue Code of 1986, as amended (the "Code"), the interest on which is not includable in "gross
<br />income" for federal income tax purposes. In furtherance thereof, the Authority specifically covenants as follows:
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<br />(i) To refrain from taking any action which would result in the Bonds being treated as "private
<br />activity bonds" within the meaning of section 141(a) of the Code;
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<br />(ii) To take any action to assure that no more than 10% of the proceeds of the Bonds or the
<br />projects financed therewith are used for any "private business use," as defined in section 141(b)(6) of
<br />the Code or, if more than 10% of the proceeds or the projects financed therewith are so used, that
<br />amounts, whether or not received by the Authority with respect to such private business use, do not
<br />under the terms of this Resolution or any underlying arrangement, directly or indirectly, secure or
<br />provide for the payment of more than 10% of the debt service on the Bonds, in contravention of
<br />section 141(b)(2) of the Code;
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<br />(iii) To take any action to assure that in the event that the "private business use" described in
<br />paragraph (ii) hereof exceeds 5% of the proceeds of the Bonds or the projects fmanced therewith, then
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