Ord 1987-110 - Laserfiche WebLink

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Section 10.05. Sale. Lease or Other Encumbrance of System. The City hereby covenants, binds and obligates itself not to mortgage or otherwise encumber the System or any part thereof, except as otherwise herein provided, or sell, lease or in any manner dispose of the System, or any part thereof, including any and all extensions and additions that may be made thereto, until all Outstanding Bonds, Bonds and Additional 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 City of property which in its judgment has become in expedient to use in connection with the System when other property of equal value has been substituted therefor). Section 10.06. Competition. That so far as it legally may, the City covenants and agrees, for the protection and security of the Outstanding Bonds, Bonds, and Additional Bonds and the holders thereof from time to time, that it wi11 not grant a franchise for the operation of any competing water and/or sewer system in the City, until all Outstanding Bonds, Bonds and Additional Bonds shall have been retired. Section 10.07. Further Covenants. The City further covenants and agrees by and through this Ordinance as follows: (a) That it has the lawful power to pledge the revenues supporting this issue of Bonds and has lawfully exercised said power under the Constitution and laws of the State of Texas, including power existing under Articles 1111, et seq., V.T.C.S., as amended. (b) That other than for the payment of the Bonds hereby issued and the Outstanding Bonds, the rents, revenues and income of the combined waterworks and sewer system of said City have not been pledged in any manner to the payment of any debt or obligation of the City, nor of said System. (c) It wi11 duly and punctually keep, observe and perform each and every undertaking, covenant and condition on its part to be kept, observed and performed, contained in this Ordinance and in the ordinances authorizing the Outstanding Bonds and any Additional Bonds, and that it wi11 prior to the maturity of each installment of interest and prior to the maturity of each Outstanding Bond, Bond, and Additional Bond issued thereunder, make available at the principal office of the Paying Agent/Registrar, but only from the Water and Sewer System Junior Lien Bond Fund, sufficient funds to promptly pay such principal and interest. (d) If and when the City from time to time shall issue Additional Bonds, the ordinance authorizing same shall provide: (i) for payments of principal thereof on January 1 of the appropriate year or years and for payments of interest thereon on January 1 and July 1; (ii) for an identical flow of funds as prescribed by this Ordinance; (iii) that a11 revenues deposited in the special funds and accounts as created and established by this Ordinance shall be comingled; and (iv) for appropriate additional or larger payments to be made into said special funds and accounts so that the security of the Outstanding Bonds, Bonds and any Additional Bonds wiU not be impaired. 2047f -26-