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portion of the System sold or disposed of for the preceding year bears to the total Net <br /> Revenue for such period; or <br /> (3) An amount which will be in the same proportion to the net amount <br /> of Parity Bonds then outstanding (as defined above) that the depreciated cost value of the <br /> facilities sold or disposed of bears to the depreciated cost value of the entire System <br /> immediately prior to such sale or disposition. <br /> The proceeds of any such sale or disposition of a portion of the properties of the System <br /> (to the extent required above) shall be paid into the Revenue Bond Fund. <br /> Notwithstanding any other provision of this subsection D, the City may sell or otherwise <br /> dispose of any of the works, plant, properties and facilities of the System or any real or personal <br /> property comprising a part of the same which shall have become unserviceable, inadequate, <br /> obsolete or unfit to be used in the operation of the System, or no longer necessary, material to or <br /> useful in such operation, without making any deposit into the Revenue Bond Fund. <br /> E. Liens or Encumbrances. The City will not at any time create or permit to <br /> accrue or to exist any lien or other encumbrance or indebtedness upon the System or the Revenue <br /> of the System, or any part thereof(other than the lien and charge of the outstanding Refunded <br /> Bonds), prior or superior to the lien thereon for the payment of the Parity Bonds, and will pay and <br /> discharge, or cause to be paid and discharged, any and all lawful claims for labor, materials or <br /> supplies which, if unpaid, might become a lien or charge upon the Revenue of the System, or any <br /> part thereof, or upon any funds in the hands of the City, prior to or superior to the lien of the <br /> Parity Bonds, or which might impair the security of the Parity Bonds. <br /> F. Insurance. The City will keep the works, plants and facilities comprising <br /> the System insured, and will carry such other insurance, with responsible insurers, with policies <br /> payable to the City, against risks, accidents or casualties, at least to the extent that insurance is <br /> usually carried by private corporations operating like properties, or will implement a <br /> self-insurance program with reserves adequate, in the judgment of the Council, to protect the City <br /> -26- Fww04EDOC 93/1 0/26 <br />