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Section 15. 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 accounts 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 have the right at all reasonable times to inspect the
System and all properties comprising same. The City further
agrees that within sixty (60) days following the close of
each fiscal year, it will cause an audit of such books and
accounts to be made by an independent firm of Certified
Public Accountants, showing the receipts and disbursements
for account of the Utility System for the fiscal year, and
each such audit, in addition to whatever other matters may
be thought proper by the Accountant, shall particularly
include the following:
(a) A detailed statement of the income and expenditures
for account of the Utility System for such fiscal year.
(b) A balance sheet as of the end of such fiscal year.
(c) The Accountant's comments regarding the manner in
which the City has carried out the requirements of this
Ordinance and his recommendations for any changes or improve-
ments in the operation, records and accounts of the Utility
System.
(d) A list of the insurance policies in force at the 1
and of the fiscal year on the Utility System properties,
setting out as to each policy the amount thereof, the risk
covered, the name of the insurer, and the policy's expiration
date.
(e) A list of the securities which have been on deposit
as security for the money in the Bond Fund, the Reserve Fund
and the Contingency Fund throughout the fiscal' year; a list
of the securities if any, in which the Reserve Fund and the
Contingency Fund have been invested, and a statement of the
manner in which money in the Utility System Revenue Fund has
been secured in such fiscal year.
(f) The number of metered and unmetered customers
connected with the various departments of the Utility System,
showing totals as of the end of the year.
Expenses incurred in making the audits above required
are to be paid as maintenance and operation expenses.
The City further agrees to promptly furnish a copy of
each such audit to First Southwest Company, Dallas, Texas,
and to any holder of any of the Bonds who shall request same
in writing, and that the holder of any of the Bonds shall
have the right to discuss with the accountant making the
audit the contents of the audit and to ask for such additional
information as he may reasonably request.
Section 16. SALE, LEASE OR OTHER ENCUMBRANCE OF SYSTEM.
The City hereby covenants, binds and obligates itself not to
sell, lease or in any manner dispose of the Utility System,
or any part thereof, including any and all extensions and
additions that may be made thereto, until all Bonds shall
have been, paid in full as to both principal and interest
(provided that this covenant shall not be construed to
prevent the disposal by the City of property which in its
judgment has become inexpedient to use in connection with
the Utility System when other property of equal value has
been substituted therefor).