<br />
<br />
<br />
<br />
<br />
<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
<br /> aforesaid lands, buildings, structures, and facilities, and every part thereof, for the benefit
<br /> of the holders and owners of the Bonds, and any Revenue Bonds, against the claims and
<br /> demands of all persons whomsoever, that it is lawfully qualified to pledge the Net Revenues
<br /> to the payment of the Bonds, and any Revenue Bonds in the manner prescribed herein, and
<br /> has lawfully exercised such rights.
<br />
<br /> (d) Liens. The Issuer will from time to time and before the same become delinquent
<br /> pay and discharge all taxes, assessments, and governmental charges, if any, which shall be
<br /> lawfully imposed upon it, or the System, that it will pay all lawful claims for rents, royalties,
<br /> labor, materials, and supplies which if unpaid might by law become a lien or charge thereon,
<br /> the lien of which would be prior to or interfere with the liens hereof, so that the priority of
<br /> the liens granted hereunder shall be fully preserved in the manner provided herein, and that
<br /> it will not create or suffer to be created any mechanic's, laborer's, materialman's, or other
<br /> lien or charge which might or could be prior to the liens hereof, or do or suffer any matter
<br /> or thing whereby the liens hereof might or could be impaired; provided, however, that no
<br /> such tax, assessment, or charge, and that no such claims which might be used as the basis
<br /> of a mechanic's, laborer's, materialman's, or other lien or charge, shall be required to be
<br /> paid so long as the validixy of the same shall be contested in good faith by the Issuer.
<br />
<br /> (e) Operation of S,ystem; No Free Service. While the Bonds, and any Revenue Bonds
<br /> are outstanding and unpaid the Issuer shall continuously and efficiently operate the System,
<br /> and shall maintain the System, or cause the System to be operated and maintained in good
<br /> condition, repair, and working order, all at reasonable cost. No free service of the System
<br /> shall be allowed, and should the Issuer or any of its agencies, instrumentalities, lessors, or
<br /> concessionaires make use of the services and facilities of the System, payment monthly of
<br /> the standard retail price of the services provided shall be made by the Issuer or any of its
<br /> agencies, instrumentalities, lessors, or concessionaires out of funds from sources other than
<br /> the revenues of the System, unless made from surplus Net Revenues as permitted by Section
<br /> 22(b) hereof.
<br />
<br /> (f) Further Encumbrance. While the Bonds, and any Revenue Bonds are outstanding
<br /> and unpaid, the Issuer shall not additionally encumber the Net Revenues in any manner,
<br /> 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,
<br /> and agreements of this Ordinance and any ordinance authorizing the issuance of Revenue
<br /> Bonds; but the right of the Issuer to issue revenue bonds payable from a subordinate lien
<br /> on surplus Net Revenues is specifically recognized and retained.
<br />
<br /> (g) Sale or Disposal of Propertv. While the Bonds, and any Revenue Bonds are
<br /> outstanding and unpaid, the Issuer shall not sell, convey, mortgage, encumber, lease, or in
<br /> any manner transfer title to, or dedicate to other use, or otherwise dispose of, the System,
<br /> (except as permitted in paragraph (n) hereof) or any significant or substantial part thereof;
<br />
<br /> 29
<br />
|