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Section 10. MAINTENANCE OF RATES. The City hereby
covenants and agrees that it will, at all times, while any
of the Parity Bonds or any Additional Bonds, or any interest
thereon, are outstanding and unpaid, charge and collect for
services rendered by said Utility System rates sufficient to
pay all maintenance, depreciation, replacement, betterment,
and interest charges and to provide an Interest and Sinking
Fund sufficient to pay the interest and principal of such
bonds as such interest and principal mature and any outstand-
ing indebtness of said System, as is required by applicable
Statutes of Texas. For the benefit of the original purchasers
and for the benefit of any and all subsequent holders of the
Parity Bonds, Additional Bonds, coupons, or any part thereof,
and in addition to all other provisions and covenants in the
laws of the State of Texas, and in this Ordinance, it is
expressly covenanted that the City shall fix and maintain
rates and collect charges for the facilities and services
afforded by the System to the City and to all other customers
which will provide revenues sufficient at all times:
(a) To pay all operating, maintenance and replacement
charges of the Utility System, as is required by
Article 1113 of the Civil Statutes, as amended,
and by other applicable Statutes of the State of
Texas;
(b) To establish and maintain the Interest and Sinking
Fund and the Reserve Fund for the Parity Bonds and
for any Additional Bonds;
(c) To pay in addition all outstanding indebtness
against the Utility System other than the Parity
Bonds, or any Additional Bonds, as and when the
same becomes due; and
(d) To provide for the payments into the "Contingency
Fund" as required under the provisions of the
Ordinances authorizing the issuance of the Parity
Bonds.
Section 11. UTILITY SYSTEM REVENUE FUND. There shall
be deposited in the Utility System Revenue Fund (already
established) as collected all revenues derived from the
operation of the Utility System, which fund shall be main-
tained separate and apart from all other funds of the City.
Such Utility System Revenue Fund shall be maintained so long
as any Parity Bonds, or any Additional Bonds, remain outstand-
ing, in the City's official Depository, and shall be adminis-
tered as follows:
(a) OPERATION AND MAINTENANCE EXPENSES: The money in
the Utility System Revenue Fund shall be used first for the
payment of the reasonable and proper expenses of operating
and maintaining the Utility System, including salaries,
labor, materials, interest, repairs and extensions necessary
to render efficient service. The words "repairs" and "exten-
sions" as used in this paragraph shall be construed to refer
only to such repairs and extensions, as in the judgment of
the governing body of the City, are necessary to keep the
System in operation and render adequate service to the City
and the inhabitants thereof, or such as might be necessary
to remedy some physical accident or condition which would
otherwise impair the security of the Parity Bonds or any
Additional Bonds.
(b) BOND FUND: The amounts to be paid into the Utility j
System Revenue Bonds Interest and Sinking Fund (already
established and hereinafter called the "Bond Fund") during
each year in which any of the Parity Bonds, or any Additional
Bonds, are outstanding, shall be an amount equal to 100 per
centum of the amount required to meet the interest and
principal payments falling due on or before the next maturity
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