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I () lfl:., (b) Other than for pledge made for the payment and security of the Parity Revenue Obligations to be outstanding following issuance of the Bonds and certain obligations of the City secured by and payable from a lien on and pledge of the Net Revenues inferior to those securing payment of the Bonds, the Net Revenues of the System have not in any manner been pledged to the payment of any debt or obligation of the City or of the System. (c) So long as any of the Bonds or any interest theI"CQn remain outstanding, the City will not sell or encumber the System or any substantial part theI"CQf, provided that this shall not be construed to prohibit the sale of such machinery or other properties or equipment which has become obsolete or otherwise unsuited to the efficient operation of the System; alsc, with the exception of the Additional Parity Obligations expressly pennitted by this Ordinance to be issued, it will not encumber the net revenues of the System unless such encumbrance is made junior and subordinate to all of the provisions of this Ordinance. ' (d) No free service of the System shall be allowed, and should the City or any of its agencies or instrumentalities make use of the services and facilities of the System, payment of the reasonable value thereof shall be made by the City out of moneys from sources other than the revenues and income of the System. (e) To the extent that it legally may, the City further covenants and agrees that, as long as any Parity Revenue Obligations, or any interest thereon, arc: outstanding, no franchise shall be granted for the installation or operation of any competing waterworks or sewer system; and that the City will prohibit the operation of any water system or sewer system other than those owned by the City, and the operation of any such system by anyone other than this City is hereby proh.ibited. ~ Section 10.05. Pavment of the Bonds. While any of the Bonds are outstanding and unpaid, there shall be made available to the Paying AgentlRegistrar, out of the Interest and Sinking Fund, money sufficient to pay the interest on and the principal of the Bonds, as applicable, as will accrue or mature on each applicable Interest Payment Date. Section 10.06. Other Representations and Covenants. .. (a) The City will faithfully perform at all times any and all covenants, undertalångs, stipulations, and provisions contained in this Ordinance and in each Bond; and the City will, at the times and in the manner prescribed by this Ordinan=, deposit or cause to be deposited the amounts of money specified by this Ordinance. (b) The City is duly authorized under the laws of the State ofTew to issue the Bonds; all action on its part for the creation and issuance of the Bonds has been duly and effectively taken; and the Bonds in the hands of the OwneI'3 thereof arc: and will be valid and enforceable obligations of the City in accordance with their terms. Section 10.07. Federal Tax Matters. (a) The City hereby represents that the proceeds of the Bonds arc: needed at this time to for the purposes specified in Section 3.01 hereof; that it is not reasonably expected that the proceeds of the Bonds or money deposited in the Interest and Sinking Fund will be used or invested in a manner iliat would cause the Bonds to be or become "arbitrage bonda," within the meaning of Section 148 of the Code; and that, except for the Interest and Sinking Fund, no other funds or accounts have been established or pledged to the payment of the Bonds. (b) The City will not take any action or fail to take any action with respect to the investment of the proceeds of the Bonds or any other funds of the City, including amounts r=eived from the investment of any of the foregoing, if such action or inaction, based upon the facts, estimates, and circumstances known on the Closing Date, would result in constituting the Bonds "arbitrage bonds," within the meaning of Section 148 of the Code, and the City will not take any deliberate action motivated by arbitrage that would have such result. (c) The City will not take any action or fail to take any action which action, or inaction, would result in the Bonds being treated as "private activity bonds" within the meaning of Section 141(a) of the Code. (d) The City will comply with the provisions of Section 148(f) of the Code (relating to paying certain excess earnings of investment proceeds of the Bonds to the United States) and the regulations promulgated thereunder. This covenant includes the maintenance of r=ords regarding investments acquired with the proceeds by or on behalf of the City adequate to calculate the City's rebate liability. (e) The City will not take any action or fail to take any action which action, or inaction, would result in the Bonds being treated as "federally guaranteed" within the meaning of Section 149(b) of the Code.