Ord 1993-038 - Laserfiche WebLink

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156Aff State of Texas to create and issue the Bonds; all action on the City's part for the creation and issuance of the Bonds has been duly and effectively taken, and the Bonds in the hands of the holders and owners thereof are and will be valid and enforceable special obligations of the City in accordance with their terms. (c) The City has lawful title to the lands, buildings, structures and facilities constituting the System, and it warrants that it will defend the title to all the aforesaid lands, buildings, structures and facilities, and every part thereof for the benefit of the holders and owners of the Parity Bonds against the claims and demands of all persons whomsoever; and it is lawfully qualified to pledge the Pledged Revenues to the payment of the Parity Bonds in the manner prescribed herein, and has lawfully exercised such rights. (d) The City will from time to time and before the same become delinquent pay and discharge all taxes, assessments and governmental charges, if any, which shall be lawfully imposed upon it, or the System; it will pay all lawful claims for rents, royalties, labor, materials and supplies which if unpaid might by law become a lien or charge thereon, the lien of which would be prior to or interfere with the liens hereof, so that the priority of the liens granted hereunder shall be fully preserved in the manner provided herein, and it wil1 not create or suffer to be created any mechanic's, laborer's, materialman's or other lie~ or charge which might or could be prior to the liens hereof, or do or suffer any matter or thing whereby the liens hereof might or could be impaired; provided, howeve r, that no such tax, assessment or charge, and that no such claims which might be used as the basis of the mechanic's, laborer's, materialman's or other lien or charge, shall be required to be paid so long as the validity of the same shall be contested in good faith by the City. (e) While the Bonds or any Parity Bonds are outstanding and unpaid, the City shall continuously and efficiently operate the System, and shall maintain the System in good condition, repair and working order, all at reasonable cost. No free service of the System shal1 be allowed. Should the City or any of its agencies or instrumentalities make use of the serVlces and facilities of the System, payment of the reasonable value shall be made by the City out of funds from sources other than the revenues of the Sys tem, unless made from surplus or excess Pledged Revenues as permitted in Section 9.08(b). (f) While any Parity Bonds are outstanding and unpaid, the City shall not additionally encumber the Pledged Revenues in any manner, except as permitted in this Ordinance in connection with Additional Parity Bonds, unless said encumbrance is made junior and subordinance in all respects to the liens, pledges, covenants and agreements of this Ordinance; provided however, that the right of 4588f -39-