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<br /> lease, or in any manner transfer title to, or dedicate to ~
<br /> ~ other use, or otherwise dispose of the System, or any ~
<br /> significant or substantial part thereof; provided that ;
<br /> = whenever the City deems it necessary to dispose of any ~
<br /> 5 property, machinery, fixtures, or equipment, or dedicate
<br /> ; such property to other use, it may sell or otherwise dispose ;
<br /> ; of such property, machinery, fixtures or equipment, or '
<br /> s;dedicate such property to other use, when it has made €
<br /> arrangements to replace the same or provide substitutes
<br /> ~.therefor, unless it is determined by resolution of the City
<br /> ~ Council that no such replacement or substitute is necessary.
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<br /> (h) Insuranr.e. (1) The City shall cause to be insur- ~
<br /> ;ed for such parts of the System as would usually be insured
<br /> by corporations operating like properties, with a respons- ;
<br /> ible insurance company or companies, against risks, acci- 1
<br /> dents, or casualties against which and to the extent insur- ;
<br /> ance is usually carried by corporations operating like
<br /> properties, including, to the extent reasonably obtainable, ~
<br /> fire and extended coverage insurance, insurance against ~
<br /> damage by floods, and use and occupancy insurance. Public
<br /> ' liability and property damage insurance shall also be
<br /> carried unless the City Attorney gives a written opinion to °
<br /> the effect that the City is not liable for claims which ~
<br /> would be protected by such insurance. Al1 insurance prem- ;
<br /> iums shall be paid as an expense of operation of the System.
<br /> At any time while any contractor engaged in construction
<br /> work shall be fully responsible therefor, the City shall not
<br /> be required to carry insurance on the work being constructed ~
<br /> j! if the contractor is required to carry appropriate insur-
<br /> ance. All such policies shall be open to the inspection of ~
<br /> the Bondholders and their representatives at all reasonable ~
<br /> times. Upon the happening of any loss or damage covered by ~
<br /> ' insurance from one or more of said causes, the City shall :
<br /> make due proof of loss and shall do all things necessary or ;
<br /> desirable to cause the insuring companies to make payment in '
<br /> full directly to the City. The proceeds of insurance cover- ~
<br /> ing such property, together with any other funds necessary .
<br /> ; and available for such purpose, shall be used forthwith by ~
<br /> the City for repairing the property damaged or replacing the ~
<br /> ai, property destroyed; provided, however, that if said insur-
<br /> ance proceeds and other funds are insufficient for such ~
<br /> purpose, then said insurance proceeds pertaining to the ~
<br /> System shall be deposited in a special and separate trust F
<br /> fund, at an official depository of the City, to be desig- ;
<br /> nated the Insurance Account. The Insurance Account shall be ;
<br /> held until such time as other funds become available which,
<br /> together with the Insurance Account, will be sufficient to ~
<br /> make the repairs or replacements originally required.
<br /> (2) The annual audit hereinafter required may contain ~
<br /> a section commenting on whether or not the City has complied ~
<br /> ~s with the requirements of this Section with respect to the ?
<br /> ~ maintenance of insurance, and shall state whether or not all ~
<br /> ~ insurance premiums upon the insurance policies to which ~
<br /> : reference is made have been paid. `
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<br /> (i) Rate Covenant. The City shall fix, establish, ~
<br /> maintain, and collect, such rates, charges, and fees for the
<br /> " use and availability of the System at all times as are "
<br /> necessary to produce Gross Revenues sufficient, together ~
<br /> with any other Pledged Revenues, (1) to pay all current ~
<br /> operation and maintenance expenses of the System, and (2) ~
<br /> produce an amount of Pledged Revenues during each fiscal ~
<br /> year at least (i) equal to 1.25 times the principal and ~
<br /> ~~~interest requirements during such fiscal year of all then '
<br /> ii outstanding Prior Lien Bonds, if any, and (ii) equal to 1.10 ~
<br /> " times the principal and interest requirements during each ~
<br /> fiscal year of all then outstanding bonds of any nature or ~
<br /> lien which are payable from Pledged Revenues. ~
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