98-039 ORD AUTHORIZE TEXAS WATERWORKS AND SEWER SYSTEM REVENUE REFUNDING BONDS, SERIES 1998

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(c) An independent registered professional engineer ofthe State of Texas, or an independent firm of engineers acting by and through a registered professional engineer of the State of Texas, signs a written certificate to the effect that, in his or its opinion, during each fiscal year while any of the Bonds, the Outstanding Bonds, or any Revenue Bonds are scheduled to be outstanding, beginning with the fiscal year next following the date of the then proposed Revenue Bonds, the Net Revenues estimated to be received during each of said fiscal years, respectively, will be at least equal to 1.10 times the principal and interest requirements, during each such fiscal year, respectively, of all bonds of any nature or lien which are payable from Net Revenues and which are scheduled to be outstanding after the issuance of the then proposed Revenue Bonds. In arriving at such opinion there may be taken into consideration any prospective additions to the System or the Net Revenues, any scheduled, projected, or reasonably expected changes in rates and charges, anticipated increases or decreases in Net Revenues or maintenance and operation expenses of the System, and any other factor which in his or its opinion would have a material impact on the Net Revenues. (d) Provision shall be made in the ordinance authorizing their issuance for establishing or contributing to a Reserve Fund so that the amount therein shall be equal to at least the average annual principal and interest requirements of all Outstanding Bonds, and the proposed Reserve Fund shall be funded, within not more than five years from the date of such delivery of the Revenue Bonds, by deposits of Net Revenues in approximately equal monthly installments on or before the l Oth day of each month commencing in the month following the issuance of such Revenue Bonds. The Reserve Fund shall be used solely to pay the principal of and interest on the Revenue Bonds to the extent of any deficiency in the Interest and Sinking Fund. Any amounts so applied shall be replaced by equal monthly deposits over the period of time determined in the ordinance authorizing such Revenue Bonds. (e) That all calculations of principal and interest requirements of any bonds made in connection with the issuance of any then proposed Revenue Bonds shall be made as of the date of such Revenue Bonds; and also in making calculations for such purpose, and for any other purpose under this Ordinance, principal amounts of any bonds which must be redeemed prior to maturity pursuant to any applicable mandatory redemption requirements shall be deemed to be maturing amounts of principal of such Revenue Bonds. Section 26. GENERAL COVENANTS. The Issuer further covenants and agrees that in accordance with and to the extent required or permitted by law: (a) Performance. It will faithfully perform at all times any and all covenants, undertakings, stipulations, and provisions contained in this Ordinance, and each ordinance authorizing the issuance of the Bonds, the Outstanding Bonds, and any Revenue Bonds; that it will promptly pay or cause to be paid the principal of and interest on the Bonds, and any Revenue Bonds, on the dates and in the places and manner prescribed in such ordinances and Bonds, the Outstanding Bonds, and Revenue Bonds; and that it will, at the times and in the manner prescribed, deposit or cause to be deposited the amounts required to be deposited into the Interest and Sinking Fund and the Reserve Fund; and any holder of the Bonds, the Outstanding Bonds, and any Revenue Bonds, may require 28