Res55 1894 - Laserfiche WebLink

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(f) Service Bonds. To pay and cause to be paid punctually the principal of the bonds and the interest thereon on the date or dates and at the place or places and in the manner mentioned in the bonds and in the coupons thereto appertaining and in accordance with this resolution. (g) Pay Claims. To pay and discharge, or cause to be paid and discharged, any and all lawful claims for labor, materials and supply, which, if unpaid, might by law become a lien or charge upon the revenues of the project or any part of said revenues, or any funds there- of in its hands, prior to or superior to the lien of the bonds, or which might impair the security of the bonds, to the end that the priority and security of the bonds shall be fully preserved and protected. (h) Encumbrances . That it will not mortgage or otherwise encumber, sell, lease, or dispose of the Project or any of the revenues thereof, nor enter into any lease or agreement which would impair or im- pede operation of any part thereof necessary to secure adequate revenues for the payment of the principal and interest of the bonds, or which otherwise would impair or impede the rights of the holders of the bonds with respect to such revenues or the operation thereof with- out provision for the retirement of the bonds of this issue then outstanding from the proceeds thereof, pro- vided, however, that material and equipment worn out or not needed for the efficient and proper operation of the system may be sold without the consent of the bondholders if the proceeds thereof are applied to the improvement or extension of the system or to the re- tirement of the bonds. (i) Insurance. It will procure and keep in force insurance upon all buildings and structures of the Project and the machinery and equipment therein against loss or damage by fire, flood, wind storm or other causes customarily insured against in connection with similar Projects with an insurer or insurers in good standing and in such amounts as may be required adequately to protect the City and the holders of the bonds from loss due to any such casualty, and in the event of such loss the proceeds shall be used to re- pair or restore such Project for the payment in full of all bonds issued hereunder. (j) Fidelity Bonds. It will procure suitable fidelity bonds covering all officers and other em- ployees of the City charged with the operation of the Project and the collection and disbursing of revenues therefrom. _19-