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<br /> ;i (b) City's Legal Authority. The City is a duly
<br /> created and existing home rule city of the State of Texas, ;
<br /> ~ and is duly authorized under the laws of the State of Texas a
<br /> to create and issue the Bonds and Additional Parity Revenue ~
<br /> Bonds; that all action on its part for the creation and ~
<br /> issuance of the said obligations has been or will be duly s
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<br /> i' and effectively taken, and that said obligations in the ~
<br /> hands of the holders and owners thereof are and will be a
<br /> ; valid and enforceable special obligations of the City in ~
<br /> j' accordance with their terms. ~
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<br /> (c) Title. The City has or will obtain lawful title ~
<br /> ' to the lands, buildings, structures, and facilities consti- a
<br /> ~j tuting the System, that it warrants that it will defend t'^e ~
<br /> title to all the aforesaid lands, buildings, structures, and ~
<br /> facilities, and every part thereof, for the benefit of the ~
<br /> holders and owners of the Bonds and Additional Parity ;
<br /> Revenue Bonds, against the claims and demands of all persons +
<br /> j' whomsoever, that it is lawfully qualified to pledge the '
<br /> Pledged Revenues to the payment of the Bonds and Additional ;
<br /> ~ Parity Revenue Bonds in the manndr prescribed herein, and
<br /> has lawfully exercised such rights. !
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<br /> (d) Liens. It will from time to time and before the $
<br /> same become delinquent pay and discharge all taxes, assess- ~
<br /> ments, and governmental charges, if any, which shall be law-
<br /> ~ fully imposed upon it, or the System, that it will pay all
<br /> ; lawful claims for rents, royalties, labor, materials, and
<br /> ? supplies which if unpaid might by law become a lien or "
<br /> ; charge thereon, the lien of which would be prior to or
<br /> ~ interfere with the liens hereof, so that the priority of the "
<br /> liens granted hereunder shall be fully preserved in the 1
<br /> manner provided herein, and that it will not create or ~
<br /> suffer to be created any mechanic's, laborer's, material-
<br /> man's, or other lien or charge which might or could be prior ;
<br /> ` to the liens hereof, or do or suffer any matter or thing y
<br /> whereby the liens hereof might or could be impaired; pro-
<br /> ? vided, however, that no such tax, assessment, or charge, and
<br /> that no such claims which might be used as the basis of a
<br /> ' mechanic's, laborer's, materialman's, or other lien or
<br /> charge, shall be required to be paid so long as the validity
<br /> ` of the same shall be contested in good faith by the City.
<br /> ~ (e) Operation of System; No Free Service. While the ~
<br /> Bonds or any Additional Parity Bonds are outstanding and un- ~
<br /> paid the City shall continuously and efficiently operate the
<br /> System, and shall maintain the System in good condition, re- "
<br /> pair, and working order, all at reasonable cost. No free ;
<br /> service of the System sha11 be allowed, and should the City €
<br /> # or any of its agencies, instrumentalities, lessors, or con- 6
<br /> cessionaires make use of the services and facilities of the
<br /> System, payment monthly of the standard retail price of the ~
<br /> i! services provided shall be made by the City or any of its
<br /> x; agencies, instrumentalities, lessors, or concessionaires out
<br /> of funds from sources other than the revenues of the System. ~
<br /> (f) Further Encumbrance. While the Bonds or any Addi- ~
<br /> j; tional Bonds are outstanding and unpaid, the City shall not '
<br /> ~t additionally encumber the Pledged Revenues in any manner, r
<br /> except as permitted in this Ordinance in connection with ~
<br /> ~ Additional Parity Revenue Bonds, and as permitted in Section ~
<br /> 28 hereof, unless said encumbrance is made junior and ~
<br /> subordinate in all respects to the liens, pledges, coven- ~
<br /> ants, and agreements of this Ordinance and any ordinance ~
<br /> authorizing the issuance of Additional parity Revenue Bonds; $
<br /> but the right of the City to issue revenue bonds payable
<br /> ; from a subordinate lien on the Pledged Revenues is specific-
<br /> ~a ally recognized and retained. ~
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<br /> Sale or Disposal of Property. While the Bonds or ;
<br /> any Additional Parity Revenue Bonds are outstanding and un-
<br /> ~ paid, the City shall not sell, convey, mortgage, encumber, ~
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