|
Such annual audit reports shall be open to the inspection of the Agency, its agents and
<br />representatives, the Trustee, and the owners of the Bonds at all reasonable times at the Agency's
<br />office.
<br />(i) Governmental Agencies. It will comply with all of the terms and conditions of
<br />any and all franchises, permits, and authorizations applicable to or necessary with respect to its
<br />System, and which have been obtained from any governmental agency; and the Sponsoring
<br />Public Entities have or will obtain and keep in full force and effect all franchises, permits,
<br />authorizations, and other requirements applicable to or necessary with respect to the acquisition,
<br />construction, equipment, operation, and maintenance of its Sponsoring Public Entity's System.
<br />6) No Competition. To the extent it legally may, it will not grant any franchise or
<br />permit for the acquisition, construction, or operation of any competing facilities which nught be
<br />used as a substitute for its System's facilities, and, to the extent that it legally may, each
<br />Sponsoring Public Entity will prohibit any such competing facilities.
<br />(k) Rights of Inspection. The Agency, the Trustee, and the owners of 10% or more in
<br />principal amount of the Bonds of any series shall have the right at all reasonable times to inspect
<br />its System and all records, accounts, and data of the Sponsoring Public Entity relating thereto,
<br />and upon request the Sponsoring Public Entity shall furnish to the Agency, the Trustee, and such
<br />owners of Bonds such financial statements, reports, and other information relating to the
<br />Sponsoring Public Entity and its System as any such person may from time to time reasonably
<br />request.
<br />(1) Sale, Lease. or Disposal of Propg= by the Sponsoring Public Entities. A
<br />Sponsoring Public Entity shall not sell, lease, mortgage, demolish, remove, or otherwise dispose
<br />of any part of its System, except as follows:
<br />(i) To the extent permitted by law, a Sponsoring Public Entity may
<br />sell or exchange at any time and from time to time any property or facilities
<br />constituting a part of its System only if (a) it shall determine such property or
<br />facilities are not useful in the operation of its System, (b) the proceeds of such
<br />sale are $250,000 or less, or it shall have received a certificate executed by the
<br />Sponsoring Public Entity's Engineer of Record and Authorized Representative
<br />stating, in their opinion, that the fair market value of the property or facilities
<br />exchanged is $250,000 or less, (c) if such proceeds or fair market value exceeds
<br />$250,000, it shall have received a certificate executed by the Sponsoring Public
<br />Entity's Engineer of Record and Authorized Representative stating, in their
<br />opinion, that the sale or exchange of such property or facilities will not impair the
<br />ability of the Sponsoring Public Entity to comply during the current or any future
<br />year with the provisions of Section 53(b) of this Contract, or (d) the sale or
<br />exchange will not adversely affect the excludability of interest on the Bonds from
<br />the gross income of the owners thereof. The proceeds of any such sale or
<br />exchange not used to acquire other property necessary or desirable for the safe or
<br />efficient operation of the Sponsoring Public Entity's System shall forthwith, at the
<br />option of the Sponsoring Public Entity, be used as provided in the ordinates of
<br />the Sponsoring Public Entity authorizing its Utility Bonds.
<br />(ii) To the extent permitted by law, the Sponsoring Public Entity may
<br />lease or make cow or grant licenses for the operation of, or make
<br />-ZS -
|