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<br />(f) Further Encumbrance. While the Bonds, the Outstanding Bonds, and any Revenue
<br />Bonds, are outstanding and unpaid, the Issuer shall not additionally encumber the Net Revenues in
<br />any manner, except as permitted in this Ordinance in connection with Revenue Bonds, unless said
<br />encumbrance is made junior and subordinate in all respects to the liens, pledges, covenants, and
<br />agreements of this Ordinance and any ordinance authorizing the issuance of Revenue Bonds; but the
<br />right of the Issuer to issue revenue bonds payable from a subordinate lien on surplus Net Revenues
<br />is specifically recognized and retained.
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<br />(g) Sale or Disoosal ofProoertv. While the Bonds, the Outstanding Bonds, and any Revenue
<br />Bonds are outstanding and unpaid, the Issuer shall not sell, convey, mortgage, encumber, lease, or
<br />in any manner transfer title to, or dedicate to other use, or otherwise dispose of, the System, (except
<br />as permitted in paragraph (n) hereof) or any significant or substantial part thereof; provided that
<br />whenever the Issuer deems it necessary to dispose of any property, machinery, fixtures, or
<br />equipment, or dedicate such property to other use, it may do so either when it has made arrangements
<br />to replace the same or provide substitutes therefor, or it is determined by resolution of the City
<br />Council that no such replacement or substitute is necessary.
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<br />(h) Insurance. (1) The Issuer shall cause to be insured such parts of the System as would
<br />usually be insured by corporations operating like properties, with a responsible insurance company
<br />or companies, against risks, accidents, or casualties against which and to the extent insurance is
<br />usually carried by corporations operating like properties, including, to the extent reasonably
<br />obtainable, fire and extended coverage insurance, insurance against damage by floods, and use and
<br />occupancy insurance. Public liability and property damage insurance also shall be carried unless the
<br />City Attorney gives a written opinion to the effect that the Issuer is not liable for claims which would
<br />be protected by such insurance. All insurance premiums shall be paid as an expense of operation
<br />of the System. At any time while any contractor engaged in construction work shall be fully
<br />responsible therefor, the Issuer shall not be required to carry insurance on the work being constructed
<br />if the contractor is required to carry appropriate insurance. All such policies shall be open to the
<br />inspection of the Bondholders and their representatives at all reasonable times. Upon the happening
<br />of any loss or damage covered by insurance from one or more of said causes, the Issuer shall make
<br />due proof of loss and shall do all things necessary or desirable to cause the insuring companies to
<br />make payment in full directly to the Issuer. The proceeds of insurance covering such property,
<br />together with any other funds necessary and available for such purpose, shall be used forthwith by
<br />the Issuer for repairing the property damaged or replacing the property destroyed; provided,
<br />however, that if said insurance proceeds and other funds are insufficient for such purpose, then said
<br />insurance proceeds pertaining to the System shall be deposited in a special and separate trust fund,
<br />at an official depository of the Issuer, to be designated the Insurance Account. The Insurance
<br />Account shall be held until such time as other funds become available which, together with the
<br />Insurance Account, will be sufficient to make the repairs or replacements originally required.
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<br />(2) The annual audit hereinafter required may contain a section commenting on whether or
<br />not the Issuer has complied with the requirements of this Section with respect to the maintenance
<br />of insurance, and shall state whether or not all insurance premiums upon the insurance policies to
<br />which reference is made have been paid.
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