2013-71 PROVIDING FOR THE ISSUANCE OF A PROMISSORY NOTE, SERIES 2013

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(g) The City will not sell, lease, loan, mortgage or in any mahner dispose of or encumber the System (subject to the right of the City to issue Additio al Obligations as provided in this Ordinance, to issue bonds or other obligations subordinate to the Note and to dispose of real or personal property which is no longer useful or necessary to the operation of the System), and the City will take no action in relation to the System which would unfavorably affect the security of the Note or the prompt payment of the principal thereof and interest thereon. Any amounts received from the sale of property of the System shall be deposited to the credit of the Depreciation Account. (h) Any holder of a Bond may proceed by civil action to com el performance of all duties required by law and this Ordinance, including the makinE and collecting of sufficient charges and rates for the service supplied by the System anc the application of the income and revenue therefrom. (i) The City will carry insurance on the System of the kinds d in the amounts which are usually carried by private parties operating similar prope ies, covering such risks as shall be recommended by a competent consulting engi eer or insurance consultant employed by the City for the purpose of making such recommendations. All moneys received for loss under such insurance policies or from the sel -insurance reserve fund or pool shall be deposited to the credit of the Depreciation Ac count and used in making good the loss or damage in respect of which they were paid, either by repairing the property damaged or making replacement of the property destroyed, and provision for making good such loss or damage shall be made within ninety (90) d s from the date of the loss. The payment of premiums for all insurance policies required under the provisions of this covenant shall be considered an Operation and Maintenance Expense. The proceeds derived from any and all policies for workers' comy ensation or public liability shall be paid into the Operation and Maintenance Account anc used in paying the claims on account of which they were received or shall be used to reimburse any account from which the claim was previously paid. 0) The City covenants not to provide any free service of the System, and,to the extent permitted by law, the City will not grant a franchise for th operation of any competing waterworks system within the City. Section 20. Tax Covenants. The City hereby covenants that it will hot take any action, omit to take any action or permit the taking or omission of any action within its control (including, without limitation, making or permitting any use of the proceeds of the Note) if taking, permitting or omitting to take such action would cause any$€the No to be an arbitrage bond or a private activity bond within the meaning of the Code, or would otherwise cause the interest on the Note to he included in the gross income of the recipients thereof for federal income tax purposes. The City acknowledges that, in the event of an examin ition by the Internal -24-