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long as any of the Sewer Improvement Bonds and Water Improvement Bonds, as the case may be, <br />remain outstanding and unpaid, it will keep and enforce the following covenants and agreements: <br />(a) The City will continue to maintain and efficiently operate the Sewer System <br />and the Water System as public utilities and conveniences free from competition of other <br />like municipal utilities and will cause all revenues therefrom to be deposited in bank <br />accounts and credited to the accounts of the Sewer System and the Water System as <br />hereinabove provided, and will make no expenditures from those accounts except for a <br />duly authorized purpose and in accordance with this resolution. <br />(b) The City will also maintain the Sewer Improvements Account of Debt <br />Service Fund as a separate account in the sewer utility fund and will cause money to be <br />credited thereto from time to time, out of Sewer Net Revenues from the Sewer System in <br />sums sufficient to pay principal of and interest on the Sewer Improvement Bonds, when <br />due. <br />(c) The City will also maintain the Water Improvements Account of the Debt <br />Service Fund as a separate account in the water utility fund and will cause money to be <br />credited thereto from time to time, out of Water Net Revenues from the Water System, in <br />sums sufficient to pay principal of and interest on the Water Improvement Bonds, when <br />due. <br />(d) 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 <br />entries as to all transactions relating to the Sewer System and the Water System and which <br />will be open to inspection and copying by any bondholder, or the bondholder's agent or <br />attorney, at any reasonable time, and it will furnish certified transcripts therefrom upon <br />request and upon payment of a reasonable fee therefor, and said account will be audited at <br />least annually by a qualified public accountant and statements of such audit and report will <br />be furnished to all bondholders upon request. <br />(e) The City Council will cause persons handling revenues of the Sewer System <br />and the Water System to be bonded in reasonable amounts for the protection of the City <br />and the bondholders and will cause the funds collected on account of the operations of the <br />Sewer System and the Water System to be deposited in a bank whose deposits are <br />guaranteed under the Federal Deposit Insurance Law. <br />(f) The City Council will keep the Sewer System and the Water System insured <br />at all times against loss by fire, tornado and other risks customarily insured against with an <br />insurer or insurers in good standing, in such amounts as are customary for like plants, to <br />protect the holders, from time to time, of the Sewer Improvement Bonds and of the Water <br />Improvement Bonds and the City from any loss due to any such casualty and will apply the <br />proceeds of such insurance to make good any such loss. <br />(g) The City and each and all of its officers will punctually perform all duties <br />with reference to the Sewer System and the Water System as required by law. <br />LA515-123-868187A <br />