5675 AUTHORIZING AND PROVIDING FOR THE ISSUE OF $8,000,000 WATER REVENUE BONDS

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y . �R . which may be reasonably requested. (e) That so long as any of the b��ds authorized hereunder are outstanding the City of Decatur will not sell, le�se, loan, mortgage or in any manner dispose of or encumber said waterworks system or any improvements and extensions thereto except for the issue of additional bonds as provided for in Section 10 hereof (provided, the covenant in this section shall not prevent the City from disposing of any property which in the �udgment of the Council is no longer useful or prof3table in the operation of said system and the proceeds from the sale of any such property placed to the credit of the Bond and Interest Reserve Account herein referred to and de- scribed in Section 7 he reof� until all of said bonds hereby authorized sha,ll be paid in full, both principal and interest, or unless and until provision sh�ll have been made for the payment thereof, and that said City will take no action in rel�tion to said waterworks sys- tem which would unfavorably affect the security of the bonds or the prompt payment of the principal and inter- est thereon. (f) Any holder of a bond or bonds or any of the coupons of any bond or bonds issued hereunder may either in law or equity, by suit, action, mandamus or other proceedings, enforce or compel performance of all duties required by this ordinance, including the making and col- lectin� of sufficient charges and rates for the service supplied by said waterworks system, and the application of the income and revenue therefrom. (g} That the �ity of Decatur will carry insurance on the said system of the kinds and in the amounts which are usually ca�ried by operators of similar properties covering such risks as shall be reco�nended by a compe- tent consulting engineer employed for the purpose of making such recommendation, and all moneys received for loss under such insurance policies shall be deposited in the Depreciation Account and used in makin� good the loss or damage in respect of which they were paid either by repairing the property damaged or replacements to the property destroyed and provision for making �ood such loss or damage shall be made within ninety days from date of the �oss . The payment of premiums for all insur- ance policies required under the provisions of this cove- nan� shall be considered a maintenance and operation expense. The proceeds derived from any �nd all policies for public liability shall be paid into the Maintenance and Operation Account and used in paying the claims on ac- ' count of which they are received. (h) That the City of Deeatur further covenants and agrees that any provisions of this ordinance to the con- trary notwithstanding, it will take no action in the in- vestment of funds which may be to the credit of any of the special accounts herein referred to and described in Section 7 hereof and including funds in the Gonstruction Fund as provided for in Section /3 hereof, which action would result in making the interest payable on any of the bonds herein authorized subject to Federal income taxes by reason of said bonds being classified as r'arbitrage bonds" within the meaning of Sections 103(d), 1.103-13 and 1.103-1� of the Internal Revenue Code of 195�, as amended, and regulations proposed or promulgated thereunder. -18-