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(d) That other than for the payment of the Bonds and
the outstanding City of Georgetown Utility System Revenue
Bonds, Series 1966, dated June 1, 1966, City of Georgetown
Utility System Revenue Bonds, Series 1970, dated April 1,
1970, City of Georgetown, Texas, Utility System Revenue
Bonds, Series 1971, dated March 1, 1971, and City of George-
town, Texas, Utility System Revenue Bonds, Series 1974,
dated October 15, 1974, the rents, revenues and income of
the Utility System have not been pledged in any manner to
the payment of any debts or obligations of the City nor of
said System.
(e) That the Utility System of the City is free and
clear of all encumbrances.
Section 20. ORDINANCE TO CONSTITUTE CONTRACT. That
the provisions of this Ordinance shall constitute a contract
between the City and the holder or holders from time to time
of the Bonds, and after the issuance of any of said Bonds,
no change, variation or alteration of any kind of the provi-
sion of this Ordinance may be made, unless as herein otherwise
provided, until all of the Bonds shall have been paid as to
both principal and interest.
Section 21. SPECIAL OBLIGATIONS. That the bonds
authorized by this Ordinance are and shall be special obliga-
tions of said City, and the holder or holders thereof shall
never have the right to demand payment of said obligations
out of any funds raised or to be raised by taxation.
Section 22. REGISTRATION OF BONDS. That the Mayor of
said City is hereby authorized to have control of said bonds
and all necessary records and proceedings pertaining to said
bonds pending their delivery and their investigation, exami-
nation and approval by the Attorney General of the State of
Texas, and their registration by the Comptroller of Public
Accounts of the State of Texas. Upon registration of said
Bonds, said Comptroller of Public Accounts (or a deputy
designated in writing to act for said Comptroller) shall
manually sign the Comptroller's Registration Certificate
prescribed herein to be printed and endorsed on each bond,
and the seal of said Comptroller shall be impressed, or
printed, or lithographed on each of said bonds.
Section 23. ARBITRAGE. That the City covenants to and
with the purchasers of the bonds that it will make no use of
the proceeds of the bonds at any time throughout the term of
this issue of bonds which, if such use had been reasonably
expected on the date of delivery of the bonds to and payment
for the bonds by the purchasers, would have caused the bonds
to be arbitrage bonds within the meaning of Section 103(c)
of the Internal Revenue Code of 1954, as amended, or any
regulations or rulings pertaining thereto; and by this
covenant the City is obligated to comply with the requirements
of the aforesaid Section 103(c) and all applicable and
pertinent Department of the Treasury regulations relating to
arbitrage bonds. The City further covenants that the proceeds
of the bonds will not otherwise be used directly or indirectly
so as to cause all or any part of the bonds to be or become
arbitrage bonds within the meaning of the aforesaid Section
103(c), or any regulations or rulings pertaining thereto.
Section 24. SALE OF BONDS. That the bonds are hereby
sold to the Texas Water Development Board for cash, at a
price equivalent to the Texas Water Development Board's
statutory lending rate plus accrued interest to date of
delivery.
Section 25. FINAL ACCOUNTING. That the City shall
render a final accounting to the Texas Water Development
Board, in reference to the total cost incurred by the City,
for the improvements and extensions to the City's Utility
System.