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<br /> open to the inspection of the Bondholders and their agents and representatives at all reasonable
<br /> times.
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<br /> (1) Governmental Agencies. It will comply with all of the terms and conditions of any and
<br /> all franchises, permits, and authorizations applicable to or necessary with respect to the System,
<br /> and which have been obtained from any governmental agency; and the Issuer has or will obtain
<br /> and keep in full force and effect all franchises, permits, authorization, and other requirements
<br /> applicable to or necessary with respect to the acquisition, construction, equipment, operation, and
<br /> maintenance of the System.
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<br /> (m) No Competition. It will not operate, or grant any franchise r, to the extent it legally may,
<br /> pernut the acquisition, construction, or operation of, any facilities which would be in competition
<br /> with the System, and to the extent that it legally may, the Issuer will prohibit any such competing
<br /> facilities.
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<br /> (n) District or River Authority Contract. Nothing herein shall be construed to prevent the
<br /> Issuer from making contracts with a district or river authority operating pursuant to Article 16,
<br /> Section 59 of the Texas Constitution, as authorized by Chapter 30, Texas Water Code, or Article
<br /> 4413 (32c), V.A.T.C.S., under which a district or river authority will make a sewer system or
<br /> water system or portions thereof available to the Issuer, and will furnish waste water collection,
<br /> transportation, treatment, disposal services or water treatment or water transportation facilities
<br /> to the Issuer, through the district's or river authority's sewer system or water system or in such
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<br /> other manner as deemed appropriate by the Issuer. Such contracts may provide for the operation,
<br /> or the acquisition by purchase or lease, of the Issuer's waste water treatment and disposal facilities
<br /> or water treatment or water transportation facilities, in whole or in part, by the district or river
<br /> authority.
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<br /> Section 27. DEFEASANCE OF BONDS. (a) Any Bond and the interest thereon shall be
<br /> deemed to be paid, retired, and no longer outstanding (a "Defeased Bond") within the meaning
<br /> of this Ordinance, except to the extent provided in subsection (d) of this Section, when payment
<br /> of the principal of such Bond, plus interest thereon to the due date (whether such due date be by
<br /> reason of maturity, upon redemption, or otherwise) either (i) shall have been made or caused to
<br /> be made in accordance with the terms thereof (including the giving of any required notice of
<br /> redemption), or (ii) shall have been provided for on or before such due date by irrevocably
<br /> depositing with or making available to the Paying Agent/Registrar for such payment (1) lawful
<br /> money of the United States of America sufficient to make such payment or (2) Government
<br /> Obligations which mature as to principal and interest in such amounts and at such times as will
<br /> insure the availability, without reinvestment, of sufficient money to provide for such payment, and
<br /> when proper arrangements have been made by the Issuer with the Paying Agent/Registrar for the
<br /> payment of its services until all Defeased Bonds shall have become due and payable. At such time
<br /> as a Bond shall be deemed to be a Defeased Bond hereunder, as aforesaid, such Bond and the
<br /> interest thereon shall no longer be secured by, payable from, or entitled to the benefits of, the
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