HomeMy WebLinkAbout0026_0024of Texas in force at such time provide permission for the
issuance�'of such bonds; ~(2) each of the above funds contains
the amount of money then required to be on deposit therein; (3)
the Net Revenues of the Utility System for either the fiscal,
year or 12 -month period next 'preceding the date' of the
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 prin-
cipal and interest requirements on all bonds to be outstanding
after the issuanceof the Additional Bonds; (4) the aggregate
amount to be accumulated and maintained in the Reserve Fund
shall be not less than the average annual principal and inter-
est requirements of all bonds similarly secured, and any addi-
tional amount required to be accumulated in the Reserve Fund
shall be accumulated therein in not less than five years and
one month from the date of the Additional Bonds;.(5) the ordin-
ance authorizing the issuance of the Additional Bonds shall.
provide for an identical Flow of Funds as prescribed by pre-
vious ordinances.
-Section 15. MAINTENANCE AND OPERATION. The Issuer 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 Issuer covenants and agrees to maintain
insurance 'for the benefit of the holder or holdersof such
bonds of the kinds and in the amounts which usually .are carried
by private companies operating similar properties, and that
during such time all policies of insurance shall be maintained
in force and kept current as to premium payments. .All monies
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 repair-.*
ing 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 pol-
icies required under the provisions hereof shall be considered
as maintenance and operation expenses.
Section 16.` RECORDS AND ACCOUNTS. The Issuer .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 i 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 Statute of Texas, 1925, 1 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 Issuer 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`independpnt firm of certified public accountants, showing
the receipts and disbursements for account of, the Utility Sys-
tem 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 Issuer has carried out the requirements' of this
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