07 - Laserfiche WebLink

Installment Sale Payments as provided herein or which might impair the security of the 2017 Installment Sale Payments SECTION 5 10 Insurance The City will procure and maintain such insurance relating to the Water System which it shall deem advisable or necessary to protect its interests and the interests of the Authority and the Trustee, which insurance shall afford protection in such amounts and against such risks as are usually covered in connection with municipal water conveyance, treatment and disposal systems similar to the Water System, provided, that any such insurance may be maintained under a self-insurance program so long as such self-insurance is maintained in the amounts and manner usually maintained in connection with municipal water conveyance, treatment and disposal systems similar to the Water System and is, in the opinion of an Insurance Consultant, financially sound All policies of insurance required to be maintained herein shall provide that the Authority and the Trustee shall be given thirty (30) days' written notice of any intended cancellation thereof or reduction of coverage provided thereby. The City shall promptly advise the Authority and the Trustee in writing if any change in the insurance coverage occurs and provide a report as to all insurance policies maintained and self-insurance programs maintained by the City with respect to the Water System, including the names of the insurers which have issued the policies and the amounts thereof and the property or risks covered thereby SECTION 5 11 Accounting Records and Financial Statements (a) The City will keep appropriate accounting records in which complete and correct entries shall be made of all transactions relating to the Water System, which records shall be available for inspection by the Authority and the Trustee at reasonable hours and under reasonable conditions (b) The City will prepare and file with the Authority and the Trustee annually within two hundred forty (240) days after the close of each Fiscal Year(commencing with the Fiscal Year ending June 30, 2016) financial statements of the City for the preceding Fiscal Year prepared in accordance with generally accepted accounting pnnciples, together with an Accountant's Report thereon. SECTION 5 12 Protection of Security and Rights of the Authority and the Trustee The City will preserve and protect the security hereof and the rights of the Authority and the Trustee to the 2017 Installment Sale Payments hereunder and will warrant and defend such rights against all claims and demands of all persons SECTION 5 13 Payment of Taxes and Compliance with Governmental Regulations The City will pay and discharge all taxes, assessments and other governmental charges which may hereafter be lawfully imposed upon the Water System or any part thereof when the same shall become due The City will duly observe and conform with all valid regulations and requirements of any governmental authority relative to the operation of the Water System or any part thereof, but the City shall not be required to comply with any regulations or requirements so long as the validity or application thereof shall be contested in good faith 14 2762682 3