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bonds then outstanding and payable from the net revenues of the Utility System;
(c) The Net Revenues of the Utility System for either the fiscal year
or twelve month period next preceding the date of the passage of an Ordinance
authorizing the issuance of the Additional Bonds are certified by a Certified
Public Accountant to have been at least equal to one and one-half times the
average annual principal and interest requirements on all bonds then outstand-
ing against the Utility System and the bonds then to be issued;
(d) A competent independent engineer certifies in writing that in his
opinion the average -annual net earnings throughout the life of the bonds then
outstanding against the Utility System and the bonds then to be issued shall be
equal to at least one and one-half times the average annual principal and interest
requirements on all bonds then outstanding against the Utility System and the
bonds then to be issued;
(e) The Ordinance authorizing the issuance of the Additional Bonds shall
provide (i) for an identical FLOW OF FUNDS as prescribed by Section 13 of the
Ordinances authorizing the Parity Bonds; (ii) that all revenues deposited
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in the special funds and accounts created and established by such Ordinances
O shall be commingled; and (iii) for appropriate additional or larger payments
t..� to be made into said special funds and accounts and for appropriate additional
or larger amounts to be accumulated in said special funds and accounts for
all bonds then outstanding against the Utility System and the proposed Addition-
al Bonds, in full accord with the provisions of this Ordinance.
Section 16. Maintenance and Operntion. The City hereby covenants and
agrees to maintain the facilities of the Utility System in good condition and
operate the same in an efficient manner and at a reasonable cost. So long
as any Parity Bonds are outstanding, the City covenants and agrees to maintain
insurance for the benefit of the holder or holders of such bonds of the kinds
and in the amounts which usually are carried by private companies operating simi-
lar properties, and that during such time all policies of insurance shall be
maintained in force and dept current as to premium payments. All moneys re-
ceived from losses under such insurance policies other than public liability
policies, are hereby pledged as security for such bonds until and unless the
proceeds are paid out in making good the loss or damage in respect of which
such proceeds are received, either by replacing the property destroyed or
repairing the property damaged, and adequate provision for making good such
loss or damage made within ninety (90) days after the date of loss. The
payment of premiums for all insurance policies required under the provisions
hereof shall be condidered as maintenance and operation expenses.
Section 17. Records and Accounts. The City hereby covenants and agrees
that so long as any Parity Bonds, or any interest thereon, remain outstanding and
unpaid, it will keep and maintain a proper and complete system of records and ac-
counts pertaining to the operation of the Utility System, separate and apart
from all other records and accounts, in which complete and correct entries shall
be made of all transactions relating to -said System as provided in Article 1113,
Revised Civil Statutes of Texas, 1925, as amended, and that the holder or holders
of any of the Parity Bonds, or any duly authorized agent or agents of such
holders, shall bave the right at all reasonable times to inspect all such
records, accounts, and data relating thereto, and to inspect the System and all
properties comprising same. The City further agrees that within sixty (60) dnys