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5/6/74 except where expressly provided otherwise. The Director of Finance shall sell at the best price obtainable or present for redemption any obligations so purchased, whenever it may be necessary to do so in order to provide moneys to meet any payment or transfer from such funds. For the purpose of determining at any given time the balance in any such funds any such investments constituting a part of such funds shall be valued at the then estimated or appraised market value of such investments. Section 11. Warranty. The City shall preserve and protect the security of the bonds and the rights of the bondholders and warrant and defend their rights against all claims and demands of all persons. Section 12. Covenants. So long as any of the bonds issued hereunder are outstanding and unpaid, or so long as provision for the full payment and discharge thereof at maturity or upon redemption thereof prior to maturity through the setting apart in the Retiarement Fund to insure the payment or redemption thereof of money sufficient for that purpose has not been made, the City makes the following covenants with the bondholders under the provisions of the Revenue Bond Law of 1941 (to be performed by the City or its proper officers, agents or employees) which covenants are necessary, convenient and desirable to secure the bonds and tend to make them more marketable; provided however, that said covenants do not require the City to expend any funds other than the revenues received or receivable from the enterprise. Covenant 1. Punctual Payment. The City covenants that it will duly and punctually pay or cause to be paid the principal of and interest on every bond issued hereunder, together with the premium thereon, if any be payable, on the date, at the place and in thei manner mentioned in the bonds and coupons and in accordance with this resolution, and that the payn~ents into the Interest Fund, the Retirement Fund and Reserve Fund will be made, all in strict conformity with the terms of said bonds and of this resolution, and that it will faithfully observe and perform all of ihe conditions, covenants and requirements of this resolution and all resolutions supplemental thereto a~d of the bonds issued hereunder, and that time of such payment and performance is of the essence of the City's contract with the bondholders. Covenant 2. Discharge Claims. The City covegants that in order to fully preserve and protect the priority and security of the bonds the City shall pay from the Revenue Fund and discharge all lawful claims for labor, materials and supplies fur~ished for or in connection with the enterprise which, if unpaid, may become a lien or charge upon the revenues prior or superior to the lien of the bonds and impair the security of the bonds. The City shall also pay from the Revenue Fund all taxes and assessments or other governmental charges lawfully levied or assessed upon or in respect of the enterprise or upon any part thereof or upon any of the revenues therefrom. Covenant 3. Commence Acquisition and Construction. As soon as funds are available therefor, the City will commence the accomplishment of the purposes for which the bonds are issued and will continue the same to completion with all practical dispatch and in an economical manner. Covenant 4. Operate Enterprise in Efficient and Economical Manner. The City covenants and agrees to operate the enterprise in an efficient and economical manner and to operate, maintain and preserve the enterprise in good repair and working order. Covenant 5. Against Sale, Eminent Domain. The City covenants that the enterprise shall not be mortgaged or otherwise encumbered, sold, leased, pledged, any charge placed thereon, or disposed of as a whole or substantially as a whole unless such sale or other disposition be so arranged as to provide for a cnntinuanee of payments into the Revenue Fund sufficient in amount to permit payment therefrom of the principal of and interest on and premiums, if any, due upon the call and redemption thereof, of the bonds, payment of which is required to be made out of the revenues of the enterprise, and also to provide for such payments into the funds as are required under the terms of this resolution. The revenues from the enterprise or any other funds pledged or otherwise made available to secure payment of the principal of I0