|
the Issuer, its officials, and employees, to carry out, respect, or enforce the covenants and obligations
<br />of this Ordinance, or any ordinance authorizing the issuance of Revenue Bonds, by all legal and
<br />equitable means, including specifically, but without limitation, the use and filing of mandamus pro-
<br />ceedings, in any court of competent jurisdiction, against the Issuer, its officials, and employees.
<br />(b) Legal Authority. The Issuer is a duly created and existing home rule city of the State of
<br />Texas, and is duly authorized under the laws of the State of Texas to create and issue the Bonds, the
<br />Outstanding Bonds, and any Revenue Bonds; that all action on its part for the creation and issuance
<br />of the said obligations has been or will be duly and effectively taken, and that said obligations in the
<br />hands of the holders and owners thereof are and will be valid and enforceable special obligations of
<br />the Issuer in accordance with their terms.
<br />(c) Title. The Issuer has or will obtain lawful title to the lands, buildings, structures, and
<br />facilities constituting the System, that it warrants that it will defend the title to all the aforesaid lands,
<br />buildings, structures, and facilities, and every part thereof, for the benefit of the holders and owners
<br />of the Bonds, the Outstanding Bonds, and any Revenue Bonds, against the claims and demands of
<br />all persons whomsoever, that it is lawfully qualified to pledge the Net Revenues to the payment of
<br />the Bonds, the Outstanding Bonds, and any Revenue Bonds, in the manner prescribed herein, and
<br />has lawfully exercised such rights.
<br />(d) Liens. The Issuer will from time to time and before the same become delinquent pay and
<br />discharge all taxes, assessments, and governmental charges, if any, which shall be lawfully imposed
<br />upon it, or the System, that it will pay all lawful claims for rents, royalties, labor, materials, and
<br />supplies which if unpaid might by law become a lien or chazge thereon, the lien of which would be
<br />prior to or interfere with the liens hereof, so that the priority of the liens granted hereunder shall be
<br />fully preserved in the manner provided herein, and that it will not create or suffer to be created any
<br />mechanic's, laborer's, materialman's, or other lien or charge which might or could be prior to the
<br />liens hereof, or do or suffer any matter or thing whereby the liens hereof might or could be impaired;
<br />provided, however, that no such tax, assessment, or charge, and that no such claims which might be
<br />used as the basis of a mechanic's, laborer's, materialman's, or other lien or charge, shall be required
<br />to be paid so long as the validity of the same shall be contested in good faith by the Issuer.
<br />(e) Operation of System; No Free Service. While the Bonds, the Outstanding Bonds, and
<br />any Revenue Bonds, are outstanding and unpaid the Issuer shall continuously and efficiently operate
<br />the System, and shall maintain the System, or cause the System to be operated and maintained in
<br />good condition, repair, and working order, all at reasonable cost. No free service of the System shall
<br />be allowed, and should the Issuer or any of its agencies, instrumentalities, lessors, or concessionaires
<br />make use of the services and facilities of the System, payment monthly of the standard retail price
<br />of the services provided shall be made by the Issuer or any of its agencies, instrumentalities, lessors,
<br />or concessionaires out of funds from sources other than the revenues of the System, unless made
<br />from surplus Net Revenues as permitted by Section 22(b) hereof.
<br />29
<br />
|