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shall be fully preserved in the manner provided herein; and it will not create or suffer to be <br />created any mechanic's, laborer's, materialman's, or other lien or charge which might or could <br />be prior to the liens hereof, or do or suffer any matter or thing whereby the lien hereof might or <br />could be impaired; provided however, that no such tax, assessment, or charge, and no such <br />claims which might be used as the basis of a mechanic's, laborer's, materialman's, or other lien <br />or charge, shall be required to be paid so long as the validity of the same shall be contested in <br />good faith by the Sponsoring Public Entity. <br />(f) Books. Records. and Accounts. It shall keep proper boeiw4 records, and accounts <br />separate and apart from all other records and accounts, in which complete and correct entries <br />shall be made of all transactions relating to its System, the Bonds, and the Sponsoring Public <br />Entities, and its shall cause said books and accounts to be audited annually as of the close of each <br />Fiscal Year by the Accountant. At the request of the Agency, the Sponsoring Public Entity shall <br />allow the Agency to audit such books, records, and accounts at any reasonable time and from <br />time to time. <br />(g) Insurance. <br />(i) Except as otherwise permitted in clause (ii) below, it shall cause to <br />be insured such parts of its System as would usually be insured by public entities <br />operating like properties, with a responsible insurance company or companies, <br />against risks, accidents, or casualties against which and to the extent insurance is <br />usually carried by public entities operating like properties, including, to the extent <br />reasonably obtainable, fire and extended coverage insurance, insurance against <br />damage by floods, and use and occupancy insurance. Public liability and property <br />damage insurance shall also be carried unless the legal counsel for the Sponsoring <br />Public Entity gives a written opinion to the effect that the Sponsoring Public <br />Entity is not liable for claims which would be protected by such insurance. At <br />any time while any contractor engaged in construction work shall be fully <br />responsible therefor, the Sponsoring Public Entities shall not be required to carry <br />insurance on the work being constructed if the contractor is required to carry <br />appropriate insurance. All such policies shall be open to the inspection of the <br />Agency at all reasonable times. <br />(ii) In lieu of obtaining policies for insurance as provided above, the <br />Sponsoring Public Entities may self-insure against risks, accidents, claims, or <br />casualties described in clause (i) above. <br />(iii) The annual audit hereinafter required shall contain a section <br />commenting on whether or not the Sponsoring Public Entity has complied with <br />the requirements of this Section with respect to the maintenance of insurance, and <br />listing the areas of insurance for which the Sponsoring Public Entity is self- <br />insuring, all policies carried, and whether or not all insurance premiums upon the <br />insurance policies to which reference is hereinbefore made have been paid. <br />(h) Audits. After the close of each Fiscal Year while this Contract is in effect, it shall <br />cause an audit to be made of the books and accounts relating to its System and of the revenues <br />and expenses of its System by the Accountant. As soon as practicable after the close of each <br />such Fiscal Year, and when said audit has been completed and made available to the Sponsoring <br />Public Entity, a copy of such audit for the preceding Fiscal Year shall be mailed to the Aawcy_ <br />-24-