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unless, at the time such Obligation is initially incurred, the City demonstrates compliance with
<br />Section 5.03(c), in which event such amounts may be paid as Parity Obligations, in accordance
<br />with Section 5.02(a) hereof.
<br />ARTICLE VI
<br />COVENANTS OF THE CITY
<br />SECTION 6.01. Compliance with Installment Purchase Agreement and Ancillary
<br />Agreements. The City will punctually pay Parity Obligations in strict conformity with the
<br />provisions hereof and any ancillary agreement, and will faithfully observe and perform all the
<br />agreements, conditions, covenants and terms contained herein required to be observed and
<br />performed by it, and will not terminate the Installment Purchase Agreement for any cause
<br />including, without limiting the generality of the foregoing, any acts or circumstances that may
<br />constitute failure of consideration, destruction of or damage to the Project, commercial frustration
<br />of purpose, any change in the tax or other laws of the United States of America or of the State or
<br />any political subdivision of either or any failure of the Authority to observe or perform any
<br />agreement, condition, covenant or term contained herein required to be observed and performed
<br />by it, whether express or implied, or any duty, liability or obligation arising out of or connected
<br />herewith or the insolvency, or deemed insolvency, or bankruptcy or liquidation of the Authority
<br />or any force majeure, including acts of God, tempest, storm, earthquake, war, rebellion, riot, civil
<br />disorder, acts of public enemies, blockade or embargo, strikes, industrial disputes, lock outs, lack
<br />of transportation facilities, fire, explosion, or acts or regulations of governmental authorities.
<br />The City will faithfully observe and perform all the agreements, conditions, covenants and
<br />terms contained in the Installment Purchase Agreement, including Supplements, and any Issuing
<br />Instrument relating to Parity Obligations required to be observed and performed by it, and it is
<br />expressly understood and agreed by and between the parties to the Installment Purchase Agreement
<br />that, subject to Section 10.07 hereof, each of the agreements, conditions, covenants and terms
<br />contained herein and therein is an essential and material term of the purchase of and payment for
<br />each Component by the City pursuant to, and in accordance with, and as authorized under the
<br />Constitution, laws of the State and the Charter.
<br />The City shall be unconditionally and irrevocably obligated, as long as any Installment
<br />Payment Obligations remain outstanding and unpaid, to take all lawful action necessary or required
<br />to continue to entitle the City to collect and deposit such System Revenues in the Water Revenue
<br />Fund for use as provided in this Installment Purchase Agreement, provided however, such
<br />obligation does not, in any way, limit the City's ability to undertake any and all legal actions,
<br />including any appeals, in the defense of a federal court order dictating a water system configuration
<br />other than that approved and adopted by the City.
<br />SECTION 6.02. Against Encumbrances. The City will not make any pledge of or place
<br />any lien on the Net System Revenues except as otherwise provided or permitted herein.
<br />SECTION 6.03. Debt Service Reserve Fund. The City may maintain or cause to be
<br />maintained each Reserve Fund and Reserve Account at the applicable Reserve Requirement. In
<br />the event the amount in any such fund or account falls below the applicable Reserve Requirement,
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