83-027 ORD CERTIFICATE FOR ORDINANCE

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(j) Records. The City shall keep proper books of ~.record and account in which full, true, proper, and correct ~ ~entries will be made of all dealings, activities, and ~ ~transactions relating to the System, the Pledged Revenues, I ;and the Funds created pursuant to this Ordinance, and all ~ I9books, documents, and vouchers relating thereto shall at all ; ~ireasonable times be made available for inspection upon ~ request of any Bondholder or citizen of the City. To the ; extent consistent with the provisions of this Ordinance, the ~ !'City shall keep its books and records in a manner conforming ; to standard accounting practices as usually would be fol- lowed by private corporations owning and operating a similar ~ System, with appropriate recognition being given to essen- ~ tial differences between municipal and corporate accounting ~ ,~practices. 9 (k) Audits. After the close of each fiscal year while ~ ~i any of the Bonds or any Additional Parity Revenue Bonds are outstanding, an audit will be made of the books and accounts ~ relating to the System and the Pledged Revenues by an ~ independent certified public accduntant or an independent ~ firm of certified public accountants. As soon as practic- able after the close of each such year, and when said audit has been completed and made available to the City, a copy of ~ ~ such audit for the preceding year shall be mailed to the Municipal Advisory Council of Texas, to each paying agent ~ ~ for any bonds payable from Pledged Revenues, and to any Bondholders who shall so request in writing. The annual ~ audit reports shall be open to the inspection of the Bond- ~ holders and their agents and representatives at all reason- ~ able times. s ; (1) Governmental Agencies. It will comply with all of the terms and conditions of any and all franchises, permits, f3 , PI and authorizations applicable to or necessary with respect ~ to the System, and which have been obtained from any govern- i% mental agency; and the City has or will obtain and keep in p full force and effect all franchises, permits, authoriza- ~ : tion, and other requirements applicable to or necessary with respect to the acquisition, construction, equipment, opera- ; tion, and maintenance of the System. ' N' (m) No Competition. It will not operate, or grant any franchise or permit for the acquisition, construction, or operation of, any facilities which would be in competition with the System, and to the extent that it legally may, the City will prohibit any such competing facilities. ; (n) No Arbitrage. That the City covenants to and with ~ the purchasers of the Bonds and any Additional Parity Revenue Bonds that no use will be made of the proceeds of r; any of such bonds at any time throughout the term of any of , such bonds which, if such use had been reasonably expected on the date of delivery of any of such bonds to and payment therefor by the purchasers, would have caused any of such ~ bonds to be arbitrage bonds within the meaning of Section ~ 103(c) of the Internal Revenue Code of 1954, as amended, or y; any regulations or rulings pertaining thereto; and by this j covenant the City is obligated to comply with the require- g ments of the aforesaid Section 103(c) and all applicable and ~ pertinent Department of the Treasury regulations relating to ~ arbitrage bonds. The City further covenants that the ~ proceeds of all such bonds will not otherwise be used ? directly or indirectly so as to cause all or any part of x such bonds to be or become arbitrage bonds within the ' E' meaning of the aforesaid Section 103(c), or any regulations ~ f j' pertaining thereto. ~ ; ~ Section 26. AMENDMENT OF ORDINANCE. (a) The holders of Bonds and Additional Parity Revenue Bonds aggregating in ~ principal amount 51% of the aggregate principal amount of then outstanding Bonds and Additional Parity Revenue Bonds f ~ 4. ~ i. ~ 1/ pq _