|
(b) The Bonds are issued as "Revenue Bonds" in accordance with Sections 24 and 25 of the
<br />Bond Ordinance for the Outstanding Bonds.
<br />(c) The Bonds, the Outstanding Bonds, and any Additional Bonds which may be issued in
<br />accordance with this Ordinance and the interest thereon, are and shall be payable from and secured
<br />by a first lien on an pledge of the Net Revenues of the System, and said Net Revenues are further
<br />pledged irrevocably to the establishment and maintenance of the Funds created by this Ordinance.
<br />Sections 8 through 27 of the Bond Ordinance that authorized the Outstanding Bonds are hereby
<br />adopted by reference and shall be restated and be applicable to the Bonds for all purposes except to
<br />the extent hereafter specifically modified and supplemented.
<br />Section 10. MAINTENANCE OF RATES. The Issuer hereby covenants and agrees that
<br />it will at all times, while any of the Bonds, the Outstanding Bonds, or any Revenue Bonds, or any
<br />interest thereon, are outstanding and unpaid, chazge and collect for services rendered by the System
<br />rates sufficient to pay all maintenance, depreciation, replacement, betterment, and interest charges,
<br />and to provide an Interest and Sinking Fund sufficient to pay the interest and principal of such
<br />Bonds, the Outstanding Bonds and the Revenue Bonds as such interest and principal mature, and any
<br />outstanding indebtedness of the System, as is required by applicable statutes of Texas. For the
<br />benefit of the original purchasers and all subsequent holders of the Bonds, the Outstanding Bonds,
<br />and any Revenue Bonds, or any part thereof, and in addition to all other provisions and covenants
<br />in the laws of the State of Texas, and in this Ordinance, it is expressly covenanted that the Issuer
<br />shall fix and maintain rates and collect charges for the facilities and services afforded by the System
<br />to the Issuer, and to all other customers, which will provide revenues sufficient at all times:
<br />(a) to pay all operating, maintenance and replacement charges of the System, as is required
<br />by Article 1113 of the Civil Statutes, as amended, and by other applicable statutes of the State of
<br />Texas;
<br />(b) to establish and maintain the Interest and Sinking Fund for the Bonds and the Interest
<br />and Sinking Fund and the Reserve Fund, if any, for the Bonds, the Outstanding Bonds and the
<br />Revenue Bonds; and
<br />(c) provide Net Revenues at least equal to 1.10 times the principal and interest requirements
<br />of the Bonds, the Outstanding Bonds, and the Revenue Bonds, if any, from time to time outstanding.
<br />(d) to pay, in addition, all outstanding indebtedness against the System, other than the
<br />Bonds, the Outstanding Bonds, and any Revenue Bonds, if any, as and when the same becomes due;
<br />and
<br />(e) to provide for the payments into any Contingency Fund as may be required under the
<br />provisions of the ordinances authorizing the issuance of the Bonds, the Outstanding Bonds, and any
<br />Revenue Bonds, with such payments to be made if and only to the extent after providing for the
<br />22
<br />
|