Ord 1993-038 - Laserfiche WebLink

Home Browse Search

13DIìt2- the city to issue revenue bonds payable from a subordinate lien on the Pledged Revenues is specifically recognized and retained. (g) While any Parity Bonds are outstanding and unpaid, the City shall not sell, convey, mortgage, encumber, lease or in any manner transfer title to, or otherwise dispose of the System, or any significant or substantial part thereof; provided that ~he City may sell or trade parts of the System determined by the City to be no 10nger useful in the operation of the System; and, provided further that whenever the City deems it necessary to dispose of any other property, machinery, fixtures or equipment, it may sell or otherwise dispose of such property, machinery, fixtures or equipment when it has made arrangements to replace the same or provide substitutes therefor, unless it is determined that no such replacement or substitute is necessary. Proceeds from any sale hereunder not used to replace or provide for substitution of such property sold, shall be used for improvements to the System or to purchase or redeem Parity Bonds. (h) (i) The City shall cause to be insured such parts of the System as would usually be insured by corporations operating like properties, with a responsible insurance company or companies, against risks, accidents or casualties against which an~ to the extent that insurance is usually carried by corP9rations operating like properties, including, to the extent reasonably obtainable, fire and extended coverage insurance, insurance against damage by floods, and use and occupancy insurance. Public liability and property damage insurance shall also be carried unless the City Attorney of the City gives a written opinion to the effect that the Ci ty is not liable for claims which would be protected by such insurance. At any time while any contractor engaged in construction work shall be fully responsible therefor, the City shall not be required to carry ~nsurance on the work being constructed if the contractor is required to carry appropriate insurance. All such policies shall be open to the inspection of the Holders of the Parity Bonds and their representatives at all reasonable times. Upon the happening of any loss or damage covered by insurance from one or more of said causes, the City shall .make due proof of 10ss and shall do all things necessary or desirable to cause the insuring companies to make payment in full directly to the City. The proceeds of insurance covering such property, together with any other funds necessary and available for such purpose, shall be used forthwith by the City for repairing the property damaged or replacing the property destroyed; provided, however, that if such insurance proceeds and other funds are insufficient for such purpose, then such insurance proceeds pertaining to the System shall be used promptly as follows: (1) For the redemption prior to maturity of Pari ty Bonds, ratably in the proportion that the outstanding principal of each ser~es or issue of Parity Bonds bears to the total outstanding 4588f -40-