10052-10 Sewage Works Revenue Bonds

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(b) All additions and improvement to the Sewage Works in connection with the Project shall be constructed under the supervision and subject to the approval of the Engineers or such other competent engineer as shall be designated by the Board. All estimates for work done or material furnished shall first be checked by the Engineers or such other competent engineer as shall be designated by the Board and approved by the Board. (c) The City shall at all times maintain its Sewage Works in good condition and operate the same in an efficient manner and at a reasonable cost. (d) So long as any of the 2010 Bonds are outstanding, the City shall maintain insurance on-the insurable parts of the Works of a kind and in an amount such as would normally be carried by private companies engaged in a similar type of business. All insurance shall be placed with responsible insurance companies qualified to do business under the laws of the State of Indiana. In addition to or in lieu of the foregoing, the City may provide for coverage on all or part of the Works comparable to that described above through aself-insurance program. Insurance proceeds shall be used in replacing or repairing the property destroyed or damaged; or if not used for that purpose shall be treated and applied as Net Revenues of the Works. (e) So long as any of the 2010 Bonds are outstanding, the City shall not mortgage, pledge or otherwise encumber such Works, or any part thereof, nor shall it sell, lease or otherwise dispose of any portion thereof except replace equipment which may become worn out or obsolete or other property not required for proper operation and maintenance of the Works. (f) So long as any Prior Bonds are held by the Indiana Finance Authority (the "Authority") and remain outstanding: (i) the City shall not mortgage, pledge or otherwise encumber such Works, or any part thereof, nor shall it sell, lease or otherwise dispose of any portion thereof except replace equipment which may become worn out or obsolete or other property not required for proper operation and maintenance of the Works, without the prior written consent of the Authority, and (ii) the City shall not borrow any money, enter into any contract or agreement or incur any other liabilities in connection with the Sewage Works, other than for normal operating expenditures, without the prior written consent of the Authority if such undertaking would involve, commit, or use the revenues of the Sewage Works. (g) Except as provided in Section 18 hereof, so long as any of the 2010 Bonds are outstanding, no additional bonds or other obligations pledging any portion of the revenues of the Sewage Works shall be authorized, executed, or issued by the City except such as shall be made subordinate and junior in all respects to the 2010 Bonds, unless all of the 2010 Bonds are redeemed, retired, or defeased coincidentally with the delivery of such additional bonds or other obligations. (h) The City shall take all action or proceedings necessary and proper to require connection of all property where liquid and solid waste, sewage, night soil, or -17-