RES 94044 - Laserfiche WebLink

pledge of or place any lien on the Net Revenues, provided that the City may at any time, or from time to time, pledge or encumber the Net Revenues in connection with the issuance or execution of Contracts, Parity Bonds or other obligations permitted by Section 4.01 hereof, or subordinate to the pledge of Net Revenues herein. Section 5.03. Against Sale or Other Disposition of Property. Subject to any assignment pursuant to Section 8.07 hereof, the City will not sell, lease, encumber or otherwise dispose of the Enterprise or any part thereof; provided however, any real or personal property which has become nonoperative or which is not needed for the efficient and proper operation of the Enterprise, or any material or equipment which has become worn out, may be sold or exchanged at not less than the fair market value thereof and the proceeds (if any) of such sale or exchange shall be deposited in the Water Revenue Fund if less than $5,000 in a Fiscal Year and otherwise in the Installment Payment Fund. The City will not enter into any agreement or lease which would impair the ability of the City to meet the covenant set forth in Section 5.14 hereof or which would otherwise impair the rights of the Owners or the operation of the Enterprise. Section 5.04. Against Competitive Facilities. The City will not, to the extent permitted by law, acquire, maintain or operate and will not, to the extent permitted by law and within the scope of its powers, permit any other public or private agency, authority, city or political subdivision or any person whomsoever to acquire, maintain or operate within the City any utility system competitive with the Enterprise; provided, however, that the City may assign all or a portion of the Enterprise to another entity upon delivery to the Authority of an opinion of nationally recognized bond counsel that such assignment will not adversely affect the tax-exempt status of the Bonds, and provided such entity assumes a pro-rata share of payment of Installment Payments. Section 5.05. Tax Covenants. The City and the Authority hereby covenant that they shall not make or permit any use of the proceeds of the Bonds that may cause the Bonds to be "arbitrage bonds" within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended. The City covenants that so long as any Bonds remain Outstanding, the amount of capacity of the Project to be used, allocated or assigned to any person, other than a governmental unit, will not exceed 10% of the total capacity of the Project during such period. For these purposes, the total capacity of the Project shall be determined by multiplying the annual capacity of the Project by the number of years in the term of the Certification. The annual capacity of the Project shall be determined by reference to its maximum yearly 13 9406701W.LA 1