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be deposited `co' `cho credi`c of `che Bond Reserve Fund; and
<br />
<br /> (c) `che balance of said proceeds shall be depoei`ced `co the credi`c
<br />of `che Cons`cruc~ion Fund for Pro:jec'c 1991.
<br />
<br /> S4rnul`caneously with `che delive~ of `che Series 1991 Bonds, `che Issuer
<br />shall deposi`c from Revenues in `che custody of `che Issuer= (i) in`co the Bond
<br />Reserve Fund `che amount determined and 8o1: fo~ch in `che Ce~cificate of Award;
<br />(ii) into the Water Revenue Fund an amoun`c equal `co one-t~elf`ch (1/12) of
<br />Opera`cing Expenses during `che preceding Fiscal Year; smd (iii) `che balance in`co
<br />the Water Reserve Fund.
<br />
<br /> Section 6, Security for the Bonds. As provided in `che Indenture,
<br />the Bonds shell be special obligations of the Issuer and (a) the Bond Service
<br />Charges thereon shall be payable ec/ually and ratably solely from the Net
<br />Revenues, the SpecielFunds, the Water Revenue Fund (to the extent moneys therein
<br />constitute Net Revenues) and the Water ReserveFund; 'and (b) the payment of Bond
<br />Service Charges on the Bonds shall be secured (i) by a pledge of and lien on
<br />(A) the Special Funds, (B) Net Revenues, (C) the Water Revenue Fund (to `che
<br />extent the moneys therein constitute Net Revenues) and (D) the Water Reserve
<br />Fund, Provided, however, that any pledge or lien on any fund, account, revenues,
<br />money or other intangible property not in the custody of the Trustee shall be
<br />valid and enforceable only to the extent permitted by law and (ii} by the
<br />Indenture; provided, however, that nothing herein shall prevent payment of Bond
<br />Service Charges on AdditiOnal Bonds from being otherwise secured and payable from
<br />sources or by property and instruments not applicable to the Series 1991 Bonds
<br />and any one or more Series of Additional Bonds or not being secured or protected
<br />from sources or by property or instruments applicable to `che Series 1991 Bonds
<br />or one or more Series of Additional Bonds.
<br />
<br /> The Issuer covenants that it will promptly pay from such sources the
<br />Bond Service Charges on every Bond issued under the provisions of the Indenture
<br />a`c the places, on the dates and in the manner provided in the Indenture and in
<br />said Bonds, according to the true intent and meaning thereof.
<br />
<br /> Nothing in this Bond Legislation, the Bonds, or the Indenture, shall
<br />represent or constitute a general obligation, debt or bonded indebtedness of the'
<br />Issuer and further,'nothing therein or herein gives the Holders of any Bonds, and
<br />they do not have, the right to have excises, ad valorem taxes or other taxes
<br />levied by the Legislative Authority or the Issuer, or by the State or the taxing
<br />authority of any other political subdivision, for the payment of Bond Service
<br />Charges on the Bonds, but such Bonds are payable solely from the Net Revenues and
<br />the Special Funds, and the Water Reserve Fund, es provided in the Indenture;
<br />provided, however, that nothing herein shall be deemed to prohibit the Issuer,
<br />of its own volition, from using to the extent it is l&wfully authorized to do so,
<br />any other resources or revenues for the fulfillment of any of the terms,
<br />conditions or obligations of the Indenture or any of the Bonds.
<br />
<br /> Section 7. Creation of Funds; Application of Reve~ue~. The Special
<br />Funds, Water Reserve Fund, Rebate Fund and Water Revenue Fund shall be held and
<br />applied as provided in the Indenture.
<br />
<br /> So long as any Bonds secured by the Indenture remain ~utstanding, all
<br />Revenues of the Utility as now constituted or hereafter improved or extended,
<br />together with any Revenues available on the date of delivery of the Series 1991
<br />Bonds, Shall be deposited in, or constitute a part of, as the case may be, the
<br />Water Revenue Fund.
<br />
<br /> Section 8. Covenants of Issuer. (a) In addition to other covenants
<br />of the Issuer herein and in the Indenture, the Issuer, by issuance of the Series
<br />1991 Bonds, covenants and agrees with the Holders of the Bonds that=
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