Agmt15 City of RWC Public Financing Authority Water Revenue Refunding Bonds

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Section 5.06. Prompt Acquisition. The City will Acquire the Project with all practicable dispatch and such Acquisition will be made in an expeditious manner and in conformity with law so as to complete the same as soon as possible. Section 5.07. Maintenance and Operation of the Enterprise; Budgets. The City will maintain and preserve the Enterprise in good repair and working order at all times and will operate the Enterprise in an efficient and economical manner and will pay all Maintenance and Operation Costs of the Enterprise as they become due and payable. On or before the first day of each Fiscal Year, the City wilt file with the Trustee a budget setting fo�th the estimated Maintenance and Operation Costs of the Enterprise for such Fiscal Year. The Trustee shall not be required to review, and shall not be deemed to have knowledge of, the contents of such budget, it being understood that the Trustee shall receive and hold such budget as repository for examination and copying by any Owner at such Owner's expense. Section 5.08. Payment of Claims. The Ciry will pay and discharge any and all lawful claims for labor, materials or supplies which, if unpaid, might become a lien on the Net Revenues or any part thereof or on any funds in the control of the City or the Trustee prior or superior to the lien of the Installment Payments or which might impair the security of the Installment Payments. Section 5.09. Compliance with Contracts. The Ciry will comply with, keep, observe and perform all agreements, conditions, covenants and terms, expressed or implied, required to be performed by it contained in all contracts for the use of the Enterprise and all other contracts affecting or involving the Enterprise to the extent that the City is a party thereto. Section 5.10. Insurance. (a) The City will procure and maintain insurance on the Enterprise with commercial insurers or through participation in a joint powers insurance authority, in such amounts, with such deductibles and against such risks (including accident to or destructian of the Enterprise) as are usually insurable in connection with similar enterprises in the region. In the event of any damage to or destruction of the Enterprise caused by the perils covered by such insurance, the proceeds af such insurance shall be applied to the repair, reconstruction or replacement of the damaged or destroyed po�tion of the Enterprise. The City shall cause such repair, reconstruction or replacement to begin promptly after such damage or destruction shall occur and to continue and to be properly completed as expeditiously as possible, and shall pay out of the proceeds of such insurance all costs and expenses in connection with such repair, reconstruction or replacement so that the same shall be completed and the Enterprise shall be free and clear of all liens and claims. If the proceeds received by reason of any such loss shall exceed the costs of such repair, reconstruction or replacement, the excess shall be applied to the prepayment of Installment Payments and payments on any Parity Obligations as provided in Article VI. 14