HomeMy WebLinkAbout0094_8787
SECTION 14. Security for Funds. All monies which ,are to be
paid into the Depository under the provisions of the ordinances
authorizing the Parity Bonds shall be secured in accordance with the
laws of the State of Texas applicable thereto, and the City covenants
especially that such money shall be continuously secured by a valid
pledge of direct obligations of, or obligations unconditionally
guaranteed by, the United State's of America, having a par value, or
market value when less than par, exclusive of accrued interest, at all
times at least equal to the total amount of money on deposit in the
several Funds in the Depository.
SECTION 15. Additional Bonds. In addition to the right to
issue bonds of inferior lien as authorized by the laws of this State,
the City of Georgetown reserve the right to issue additional bonds
from time to time payable from the net income and revenues of the
Utility System; and, when issued in compliance with law and the terms
and conditions hereinafter appearing, such Additional Bonds shall be
equally secured by a first lien on and pledge of the Pledged Revenues;
and the Additional Bonds, when issued, shall be payable from the
Utility System Revenue Bonds Interest and Sinking Fund and shall be
in all respects of equal dignity and on a parity with the Parity Bonds,
PROVIDED that in each instance:
O'1
(a) The
Additional
Bonds are authorized
and issued in con-
formity with
the Constitution
and applicable Statutes
of the State
of Texas;
(b) The
Bond fund,
the Reserve fund, and
the Contingency
Fund contain
the amount
of money then"required
to be on deposit
therein and the
City is
in compliance with all
other covenants and
undertakings
in connection
with all 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 outstanding 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 aver-
age annual principal and interest requirements on all bonds then outstand-
ing 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 in the special funds and accounts created and
established by such ordinances shall be commingled; and (iii) for
appropriate additional or larger payments 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 Additional Bonds,
in full accord with the provisions of this ordinance.
SECTION 16. Maintenance and Operation. The City hereby covenants
and agrees to'maintain the facilities of the Utility System in good con-
dition 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 similar properties, and that during such
tine all policies of insurance shall be maintained in force and dept current
as to premium payments. All moneys received 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