12-11-1995 Council Packet - Laserfiche WebLink

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or extensions to the Water and Sc%er System of the City Without regard to the limitations provided by paragraph 11 the City may issue bonds payable from the net revenues of the Water and Sewer S>*stem and the special assessments for the Improvement; (a) for the purpose of refunding the principal of all Bonds outstanding; or (b) for the purpose of refunding the principal of and interest on outstanding Bonds not paid v\ hen due for lack of available net revenues. 13. So long as any of the Bonds are outstanding, the City covenants with and for the benefit of each Bond holder that: (a) The City will establish, maintain and collect such charges of the nature authonzed by Section 444 075, Minnesota Statutes, at the times and in the amounts necessary so that the net rev enues of the Water and Sewer System w ill be sufficient, together with the special assessment for the Improvement to make the required payments into the Water and Sewer Bond Account (b) The City w ill continue to own, operate and maintain the Water and Sewer Sy.stem of the City as a revenue-producing utility free from all liens on the property thereof and income therefrom other than the hens herein described or provided (c) The City will use its best efforts to comply with all applicable laws and regulations of the United States of America and the State of Minnesota and each department and agency thereof, including laws and regulations relating to public health and water and sewer quality The City will continue to use and operate the System to the extent such use and operation is not prohibited by court order or regulation, but the City may contest the validity or applicability of any law or regulation so long as the System is not thereby subject to unrea.sonable penalties or risk of damage or forfeiture. The City shall construct any improvements or extensions ultimately determined to be necessary to comply with applicable laws or regulations so that the System may be used and operated as a revenue-producing utility, and the City may issue additional obligations .secured by a parity hen on and ratably payable from the net rev enues of the System, as prov ided m paragraph 12 hereof, for the purpose of providing money for said necessary improv ements or extensions 14 The City Clerk is authorized and directed to prepare and furnish to the purcha.sei and to the attorneys approving the Bonds, certified copies of all proceedings and records relating to the issuance of said General Obligation Refunding Bonds of 1995 and to the right, power and authority ol the t ity and its otticers to issue the same, and saiil certified copies and certificates shall be deemed the representations of the City as to all matters .stated titerein. -1.3-