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SECTION 15. Books and Records. The City shall keep proper books of records and <br /> accounts, separate from all of its other records and accounts, in which complete and correct <br /> entries shall be made showing all revenues collected from the Works and deposited in said funds, <br /> all disbursements made therefrom on account of the operation of the Works and to meet the <br /> requirements of the Sinking Fund, and all other transactions relating to the Works, including the <br /> cash balances in each of the funds and accounts described herein as of the close of the preceding <br /> fiscal year. Upon written request, there shall be prepared and furnished to the original <br /> purchasers of the 2011 Bonds and to any subsequent owner of the bonds at the time then <br /> outstanding, not more than four (4) months after the close of each fiscal year, operating income <br /> and expense and balance sheet statements of the Works, covering the preceding fiscal year, <br /> which annual statements shall be certified by the Controller, or the person charged with the duty <br /> of auditing the books and records relating to the Works, or such statements may be prepared by <br /> an independent certified public accountant retained by the City for the purpose of preparing such <br /> statements. Copies of all such statements and reports shall be kept on file in the office of the <br /> Controller. Any owner or owners of the 2011 Bonds then outstanding shall have the right at all <br /> reasonable times to inspect the Works and all records, accounts and data of the City relating <br /> thereto. Such inspections may be made by representatives duly authorized by written instrument. <br /> SECTION 16. Rate Covenant. The City shall, to the fullest extent permitted by law, <br /> establish, maintain and collect just and equitable rates and charges for the use of and the services <br /> rendered by said Sewage Works, to be paid by the owner of each and every lot, parcel of real <br /> estate or building that is connected with and uses said Sewage Works by or through any part of <br /> the sewage system of the City, or that in any way uses or is served by such Works. Such rates or <br /> charges shall be sufficient in each year for the payment of the proper and reasonable expenses of <br /> operation, repair and maintenance of the Works, for depreciation and improvement, and for the <br /> payment of the sums required to be paid into the Sinking Fund. Such rates or charges shall, if <br /> necessary, be changed and readjusted from time to time so that the revenues therefrom shall <br /> always be sufficient to meet the expenses of operation, repair and maintenance, depreciation and <br /> improvement, and the requirements of the Sinking Fund; and such rates or charges shall be in an <br /> amount sufficient in each year to produce Net Revenues at least equal to 1.1 times the greater of <br /> the average annual debt service on the Prior Bonds, the 2011 Bonds and all bonds on a parity <br /> therewith or the debt service payable during the next succeeding twelve calendar months on the <br /> Prior Bonds, the 2011 Bonds and all bonds on a parity therewith. For these purposes, the interest <br /> rate on variable rate debt shall be assumed to be the average interest rate thereon in the preceding <br /> calendar year. <br /> SECTION 17. Defeasance. If, when the 2011 Bonds or a portion thereof shall have <br /> become due and payable in accordance with their terms or shall have been duly called for <br /> redemption or irrevocable instructions to call the 2011 Bonds or a portion thereof for redemption <br /> shall have been given, and the whole amount of the principal, premium, if any, and the interest <br /> so due and payable upon such 2011 Bonds or any portion thereof then outstanding shall be paid, <br /> or (i) cash, (ii) direct non-callable obligations of(including obligations issued or held in book- <br /> entry form on the books o fl the U.S. Department of the Treasury, the principal of and the interest <br /> on which when due without reinvestment will provide sufficient money, or (iii) any combination <br /> of the foregoing, shall be held irrevocably in trust for such purpose, and provision shall also be <br /> made for paying all fees and expenses for the payment, then and in that case the 2011 Bonds or <br /> - 15 - <br />