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laws of the State of Indiana in the case of public contracts, and shall be governed in all <br /> respects by the laws of the State of Indiana relating to public contracts. <br /> (b) All additions and improvement to the Sewage Works in connection with <br /> the Project shall be constructed under the supervision and subject to the approval of the <br /> Engineers or such other competent engineer as shall be designated by the Board. All <br /> estimates for work done or material furnished shall first be checked by the Engineers or <br /> such other competent engineer as shall be designated by the Board and approved by the <br /> Board. <br /> (c) The City shall at all times maintain its Sewage Works in good condition <br /> and operate the same in an efficient manner and at a reasonable cost. <br /> (d) So long as any of the 2011 Bonds are outstanding, the City shall maintain <br /> insurance on the insurable parts of the Works of a kind and in an amount such as would <br /> normally be carried by private companies engaged in a similar type of business. All <br /> insurance shall be placed with responsible insurance companies qualified to do business <br /> under the laws of the State of Indiana. In addition to or in lieu of the foregoing, the City <br /> may provide for coverage on all or part of the Works comparable to that described above <br /> through a self-insurance program. Insurance proceeds shall be used in replacing or <br /> t used for that ose shall be <br /> repairing the property destroyed or damaged; or if no purp <br /> treated and applied as Net Revenues of the Works. <br /> (e) So long as any of the 2011 Bonds are outstanding, the City shall not <br /> mortgage, pledge or otherwise encumber such Works, or any part thereof,nor shall it sell, <br /> lease or otherwise dispose of any portion thereof except replace equipment which may <br /> become worn out or obsolete or other property not required for proper operation and <br /> maintenance.of the Works. <br /> (fl So long as any Prior Bonds are held by the Indiana Finance Authority (the <br /> "Authority") and remain outstanding: (i)the City shall not mortgage, pledge or otherwise <br /> encumber such Works, or any part thereof, nor shall it sell, lease or otherwise dispose of <br /> any portion thereof except replace equipment which may become worn out or obsolete or <br /> other property not required for proper operation and maintenance of the Works, without <br /> the prior written consent of the Authority, and (ii) the City shall not borrow any money, <br /> enter into any contract or agreement or incur any other liabilities in connection with the <br /> Sewage Works, other than for normal operating expenditures, without the prior written <br /> consent of the Authority if such undertaking would involve, commit, or use the revenues <br /> of the Sewage Works. <br /> (g) Except as provided in Section 18 hereof, so long as any of the 2011 Bonds <br /> are outstanding, no additional bonds or other obligations pledging any portion of the <br /> revenues of the Sewage Works shall be authorized, executed, or issued by the City except <br /> such as shall be made subordinate and junior in all respects to the 2011 Bonds, unless all <br /> of the 2011 Bonds are redeemed, retired, or defeased coincidentally with the delivery of <br /> such additional bonds or other obligations. <br /> - 17 - <br /> i <br />