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<br />539895v2 JAE LN140-118 8 <br /> <br /> (b) Utility Improvements Account. Proceeds of the Utility Revenue Bonds, less the <br />appropriations made in Section 4.01(b) hereof, will be deposited in the Utility Improvements Account <br />of the Construction Fund to be used solely to defray expenses of the Utility Improvements. When the <br />Utility Improvements are completed and the cost thereof paid, the Utility Improvements Account of <br />the Construction Fund is to be closed and any funds remaining therein may be deposited in the Utility <br />Improvements Account of the Debt Service Fund. <br /> <br /> 4.03. City Covenants with Respect to the Utility Revenue Bonds. The City Council covenants <br />and agrees with the holders of the Bonds that so long as any of the Bonds remain outstanding and unpaid, <br />it will keep and enforce the following covenants and agreements: <br /> <br /> (a) The City will continue to maintain and efficiently operate the water system and <br />sanitary sewer system as public utilities and conveniences free from competition of other like <br />municipal utilities and will cause all revenues therefrom to be deposited in bank accounts and <br />credited to the Water Fund and the Sanitary Sewer Fund, respectively, as hereinabove provided, and <br />will make no expenditures from those accounts except for a duly authorized purpose and in <br />accordance with this resolution. <br /> <br /> (b) The City will also maintain the Utility Improvements Account of the Debt Service <br />Fund as a separate account and will cause money to be credited thereto from time to time out of <br />Net Revenues from the water system and sanitary sewer system in sums sufficient to pay principal <br />of and interest on the Utility Revenue Bonds when due. <br /> <br /> (c) The City will keep and maintain proper and adequate books of records and <br />accounts separate from all other records of the City in which will be complete and correct entries <br />as to all transactions relating to the water system and sanitary sewer system and which will be open <br />to inspection and copying by any Bondholder or the Bondholder’s agent or attorney at any <br />reasonable time, and it will furnish certified transcripts therefrom upon request and upon payment <br />of a reasonable fee therefor, and said account will be audited at least annually by a qualified public <br />accountant, and statements of such audit and report will be furnished to all Bondholders upon <br />request. <br /> <br /> (d) The City Council will cause persons handling revenues of the water system and <br />sanitary sewer system to be bonded in reasonable amounts for the protection of the City and the <br />Bondholders and will cause the funds collected on account of the operations of such systems to be <br />deposited in a bank whose deposits are guaranteed under the Federal Deposit Insurance Law. <br /> <br /> (e) The City Council will keep the water system and sanitary sewer system insured at <br />all times against loss by fire, tornado, and other risks customarily insured against with an insurer <br />or insurers in good standing, in such amounts as are customary for like plants, to protect the holders, <br />from time to time, of the Bonds and the City from any loss due to any such casualty and will apply <br />the proceeds of such insurance to make good any such loss. <br /> <br /> (f) The City and each and all of its officers will punctually perform all duties with <br />reference to the water system and sanitary sewer system as required by law. <br /> <br /> (g) The City will impose and collect charges of the nature authorized by <br />Section 444.075 of the Act, at the times and in the amounts required to produce Net Revenues <br />adequate to pay all principal and interest when due on the Utility Revenue Bonds and to create and <br />maintain such reserves securing said payments as may be provided in this resolution.