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Section 16. Issuance of Future Parity Bonds . The City <br /> hereby further covenants and agrees with the owners and holders of <br /> each of the Refunding Bonds for as long as any of the same remain <br /> outstanding that the City will not issue any bonds or other <br /> obligations having a greater or equal priority of lien upon the <br /> Revenue of the System to pay and secure the payment of the princi- <br /> pal of and interest on such bonds or other obligations than the <br /> lien created upon the Revenue of the System to pay and secure the <br /> payment of the principal of and interest on the 1988 Bonds except <br /> as follows: <br /> A. The City reserves the right to issue future Parity <br /> Bonds for the purposes of <br /> First, providing funds to acquire, construct, <br /> reconstruct, install, or replace any equipment, facilities, <br /> additions, betterments, or other capital improvements to the <br /> System for which it is authorized by law to issue revenue <br /> bonds, or <br /> Second, refunding at or prior to their maturity, <br /> any revenue warrants, or outstanding revenue bonds or other <br /> obligations payable out of the Revenue of the System, <br /> and to pledge that payments will be made out of the Revenue of the <br /> System and into the Revenue Bond Fund and the accounts therein to <br /> pay and secure the payment of the principal of and interest on <br /> such future Parity Bonds on a parity of lien with the payments <br /> required herein to be made out of such Revenue into such Fund and <br /> accounts to pay and secure the payment of the principal of and <br /> interest on any Parity Bonds then outstanding, upon compliance <br /> with the following conditions : <br /> ( 1) At the time of the issuance of any future <br /> Parity Bonds there is no deficiency in the Revenue Bond Fund <br /> or any accounts therein. <br /> -49- KR180 88/01/11 <br />