91-055 ORD AUTHORIZING ISSUANCE OF TAX AND REVENUE REFUNDING BONDS SERIES 1991

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Section 11. TRANSFER. That the Mayor and the City Clerk are hereby ordered to do any and all things necessary to accomplish the transfer of monies to the Interest and Sinking Fund of this issue in ample time to pay such items of principal and interest. Section 12. MAINTENANCE OF RATES. The Issuer hereby covenants and agrees that it will at all times, while any of the Bonds or any Revenue Bonds or any interest thereon, are outstanding and unpaid, charge and collect for services rendered by the System rates sufficient to pay all maintenance, depreciation, replacement, betterment, and interest charges, and to provide an Interest and Sinking Fund sufficient to pay the interest and principal of such Bonds and to provide an Interest and Sinking Fund sufficient to pay the interest and principal of any Revenue Bonds as such interest and principal mature, and any outstanding indebtedness of the System, as is required by applicable statutes of Texas. For the benefit of the original purchasers and all subsequent holders of the Bonds, Revenue Bonds, or any part thereof, and in addition to all other provisions and covenants in the laws of the State of Texas, and in this Ordinance, it is expressly covenanted that the Issuer shall fix and maintain rates and collect charges for the facilities and services afforded by the System to the Issuer, and to all other customers, which will provide revenues sufficient at all times: (a) to pay all operating, maintenance and replacement charges of the System, as is required by Article 1113 of the Civil Statutes, as amended, and by other applicable statutes of the State of Texas; (b) to establish and maintain the Interest and Sinking Fund for the Bonds and the Interest and Sinking Fund and the Reserve Fund, if any, for the Revenue Bonds; and (c) provide Net Revenues at least equal to 1.10 times the principal and interest requirements of the Bonds and Revenue Bonds from time to time outstanding. (d) to pay, in addition, all outstanding indebtedness against the System, other than the Bonds and the Revenue Bonds, as and when the same becomes due; and (e) to provide for the payments into any Contingency Fund as may be required under the provisions of the ordinances authorizing the issuance of the Revenue Bonds, with such payments to be made if and only to the extent after providing for the required monthly deposits to the Interest and Sinking Fund for the Bonds. Section 13. REVENUE BONDS. (a) That the Issuer shall have the right and power at any time and from time to time, and in one or more Series or issues, to authorize, issue, and deliver additional parity revenue bonds (herein called "Revenue Bonds"), in accordance with law, in any amounts, for any lawful purpose, including the refunding of any Bonds, Revenue Bonds, or other obligations. Such Revenue Bonds, if and when authorized, issued, and delivered in accordance with this Ordinance, may be payable from and secured by an irrevocable first lien on and pledge of the Net Revenues, all as hereinafter provided. 23