HomeMy WebLinkAbout0027_00253cA to
Ordinance and his- recommendations for any changes or
improvements in the operation, records and accounts of the
Utility System;
(d) a list of the insurance policies in force at the end
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 Issuer 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 17. SALE, LEASE OR. OTHER ENCUMBRANCE OF SYSTEM.
The Issuer 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 addi-
tions 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 Issuer of property which in its judgment has become inexpe-
dient to use in connection with the Utility System when other
property of equal value has been substituted therefor).
Section 18. NO COMPETING SYSTEM. That so far as it leg-
ally may, the Issuer covenants and agrees, for the protection
and security of the Bonds and the holders thereof, from time to
time, that it will not grant a franchise for the operation of
any competing waterworks, sewer and/or electric light system in
the Issuer, until all Bonds issued hereunder shall have been
retired.
Section' 19. REMEDIES IN EVENT OF DEFAULT. In addition to
all the rights and remedies provided by the laws of the State
of Texas, the I ssfter covenants and agrees particularly that in
the event the Issuer (a) defaults in the payment of the princi-
pal of or interest on any Bonds when due, (b) fails to make the
payments required by Section 11 of the ordinances authorizing
the Parity bonds to be made into the Bond Fund, Reserve Fund
and Contingency Fund, or (c) defaults in the observance or per-
formance of any other of the covenants, conditions or obliga-
tions set forth in this Ordinance, the following remedies shall
be available:
(i) the holder or holders of any of the Bonds issued
hereunder shall be entitled to a writ of mandamus issued by a
court of proper jurisdiction compelling and requiring the City
Council and other officers of the issuer to observe and perform
any -covenant, obligation or condition prescribed in this Ordin-
ance
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