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<br />(2) ?yew Debt. <br />If ttie City desires the Authority to provide any <br />part of the debt service (interest or principal) or other <br />reimbursement for any indebtedness incurred by the City <br />after the date hereof for capital expenditures for the <br />purchase, acquisition, or construction of additional Transit <br />Facilities, it shall first secure the written approval of <br />the Authority. Otherwise, the Authority will not be respon- <br />sible for the debt service of such indebtedness and will not <br />pay or reimburse the City for such debt service. <br />Alternatively, the City may submit to the Authority <br />information concerning desired capital improvements and seek <br />agreement with the Authority under which the Authority shall <br />itself assume responsiblity for and incur such new indebted- <br />ness. In such event, the Authority shall lease such capital <br />improvements to the City, upon terms and conditions to be <br />agreed upon by the parties. <br />12. Conditions, Limitations and Restrictions. <br />A. The City shall not be responsible to the <br />Authority for any loss or damage sustained or claimed to be <br />sustained by the Authority through the failure of the City <br />to maintain at all times a timely operating schedule, pro- <br />vided it maintains substantial compliance ~ti~ith such sched- <br />ule. <br />B. If, at any time during, the term of this <br />Agreement, the City shall fail to provide Scheduled Service, <br />or shall fail to comply with the terms, conditions, and <br />requirements of this Agreement, the Authority may declare <br />the City in default, and thereafter be released from all <br />obligation for cost reimbursement under section 11 of this <br />Agreement. <br />_„_ <br />_ ,... _ <br />