Ordinance 1139-85 - Laserfiche WebLink

E. Liens or Encumbrances . The City will not at any time create or permit to accrue or to exist any lien or other encum- brance or indebtedness upon the System or the Revenue of the System, or any part thereof (other than the lien and charge of the outstanding Refunded Bonds) , prior or superior to the lien thereon for the payment of the Parity Bonds, and will pay and discharge, or cause to be paid and discharged, any and all lawful claims for labor, materials or supplies which, if unpaid, might become a lien or charge upon the Revenue of the System, or any part thereof, or upon any funds in the hands of the City, prior to or superior to the lien of the Parity Bonds, or which might impair the security of the Parity Bonds. F. Insurance . The City will keep the works, plants and facilities comprising the System insured, and will carry such other insurance, with responsible insurers, with policies payable to the City, against risks, accidents or casualties, at least to the extent that insurance is usually carried by private corpora- tions operating like properties, or will implement a self- insurance program with reserves adequate, in the judgment of the Council, to protect the City and the holders of the Bonds against loss. In the event of any loss or damage, the City will promptly repair or replace the damaged portion of the insured property and apply the proceeds of any insurance policy for that purpose; or in the event the City should determine not to repair or reconstruct such damaged portion of the properties of the System, the proceeds of such insurance shall be paid into any Reserve Account to the extent that such transfer shall be necessary to make up any deficiency in said Reserve Account and the balance, if any, shall, at the option of the City, be used either for repairs, renewals, replacements, or capital additions to the System, for the redemp- tion of Parity Bonds, or for deposit into the Revenue Bond Fund. -28- WMD202 85/06/10