ERMU RES 16-8 - Laserfiche WebLink

Home Browse Search

Section 11. Priority of Payments. If the money on hand in the Debt Service Account shall be insufficient at any time to pay the principal then due and interest then accrued on all Bonds payable therefrom, said money shall first be applied to the payment pro rata of the accrued interest on all Bonds, and any balance shall be applied first in payment of maturing principal; as between Bonds having different maturity dates, the principal of earlier maturing Bonds shall be paid first; and as between Bonds maturing on the same date, the principal of Bonds shall be paid pro rata. Section 12. Covenants. For the protection of the Holders of the Bonds, the City and the Commission hereby covenant and agree to and with the Holders thereof from time to time as follows: (a) They will at all times adequately maintain and efficiently operate the Electric System. They will from time to time make all needful and proper repairs, replacements, additions and betterments to the equipment and facilities of the Electric System so that it may at all times be operated properly and advantageously and so that the value and efficiency of the facilities shall be at all times fully maintained and its revenues unencumbered by reason thereof. (b) In order to ensure the efficient and economical operation of the Electric System and the proper maintenance thereof, the Commission on behalf of the City will employ an experienced manager to operate and maintain the Electric System. Such manager shall be employed on a full-time basis and the compensation shall be paid as an operating expense of the Electric System. (c) The rates for all service and the charges for all electricity and services supplied by the Electric System to the City and its residents and to all consumers shall be reasonable and just,taking into account the cost and value of the Electric System,the cost of maintaining and operating the Electric System and the proper and necessary allowances for depreciation and amounts required for the payment of principal and interest on the bonds payable from the Net Revenues. Charges to all customers shall be uniform for all users of the same class. The Commission on behalf of the City will bill its customers and the City on a monthly basis and, subject to the requirements of State law, will discontinue service to any customer whose bill remains unpaid 30 days following the mailing of such bill and service will not be restored until the bill and any penalties have been paid in full. (d) They will establish, maintain and collect such charges and rates as will produce revenues sufficient to pay the reasonable cost of operation and maintenance of the Electric System and to produce, in each Fiscal Year, Net Revenues at least equal to 110% of the annual interest and principal requirements of the Outstanding Bonds in such Fiscal Year. Such rates and charges will be increased from time to time whenever necessary to carry out the obligations of this Resolution. (e) The City and the Commission will not sell, lease, mortgage, or in any manner dispose of all or substantially all of properties of the Electric System until all of the Outstanding Bonds have been paid in full; provided, however, that the City or the 15 479938v3 JSB EL185-41