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<br />" <br /> <br />hereof. If any payment of principal or interest on the Improvement Bonds portion of the <br />Bonds shall become due when there is not sufficient money in the Improvements Account <br />of the Debt Service Fund to pay the same, the Finance Director is directed to pay such <br />principal or interest from the general fund of the City, and the general fund will be <br />reimbursed for such advances out of the proceeds of the Assessments and Taxes when <br />collected. <br /> <br />3.02. The City Council covenants and agrees with the holders of the Bonds that so long <br />as any of the Water Revenue Bonds portion of the Bonds remain outstanding and unpaid, it will <br />keep and enforce the following covenants and agreements: <br /> <br />(a) The City will continue to maintain and efficiently operate the water <br />system as a public utility and convenience free from competition of other like municipal <br />utilities and will cause all revenues therefrom to be deposited in bank accounts and <br />credited to the water system accounts as hereinabove provided, and will make no <br />expenditures from those accounts except for a duly authorized purpose and in accordance <br />with this resolution. <br /> <br />(b) The City will also maintain the Water Revenue Account of the Debt <br />Service Fund as a separate account in the water utility fund, and will cause money to be <br />credited thereto from time to time, out of Net Revenues from the water plant and system <br />in sums sufficient to pay principal of and interest on the Water Revenue Bonds portion of <br />the Bonds when due. <br /> <br />(c) The City will keep and maintain proper and adequate books of records and <br />accounts separate from all other records of the City in which will be complete and correct <br />entries as to all transactions relating to the water system and which will be open to <br />inspection and copying by any bondholder, or the bondholder's agent or attorney, at any <br />reasonable time, and it will furnish certified transcripts therefrom upon request and upon <br />payment of a reasonable fee therefor, and said account will be audited at least annually by <br />a qualified public accountant and statements of such audit and report will be furnished to <br />all bondholders upon request. <br /> <br />(d) The City Council will cause persons handling revenues of the water <br />system to be bonded in reasonable amounts for the protection of the City and the <br />bondholders and will cause the funds collected on account of the operations of the water <br />system to be deposited in a bank whose deposits are guaranteed under the Federal <br />Deposit Insurance Law. <br /> <br />(e) The Council will keep the water system insured at all times against loss by <br />fire, tornado and other risks customarily insured against with an insurer or insurers in <br />good standing, in such amounts as are customary for like plants, to protect the holders, <br /> <br />SJB-225775vl <br />NE136-184 <br />