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5/6/?~ and interest on the bonds shall not be mortgaged, encumbered, sold, leased, pledged, any charge placed thereon, or disposed of or used except as authorized by the terms of this resolution. The City further covenants that it will not enter any agreement which impairs the operation of the enterprise or any part of it necessary to secure adequate revenues to pay the principal and interest of the bonds or which otherwise would impair the rights of the bondholders with respect to the revenues or the operation of the enterprise. If any substantial part of the enterprise is sold the payment therefor shall either be used for the acquisition and/or construction of improvements and extensions of the enterprise or shall be placed in the appropriate funds and shall be used to pay or call and redeem outstanding bonds in the manner provided in this resolution and any subsequent resolution. The City covenants that any amounts received as awards as a result of the taking of all or any part of the enterprise by the lawful exercise of eminent domain, if and to the extent that such right can be exercised against such property of the City, shall either be used for the acquisition and/or construction of improvements and extension of the enterprise or shall be placed in the appropriate funds and shall be used to pay or call and redeem outstanding bonds in the manner provided in this resolution and any subsequent resolution. Covenant 6. Insurance. The City covenants that it shall at all times maintain with responsible insurers all such insurance on the enterprise as is customarily maintained with respect to works and properties of like character against accident to, loss of or damage to such works or properties. If any useful part of the enterprise shall be damaged or destroyed, such part shall be restored to use. The money collected from insurance against accident to or destruction of the physical enterprise shall be used for repairing or rebuilding the damaged or destroyed enterprise, and to the extent not so applied, shall be applied to the retirement of outstanding and unredeemed bonds issued for the enterprise and for such purpose paid into the appropriate funds. The City shall also maintain with responsible insurers workmen's compensation insurance and insurance against public liability and property damage to the extent reasonably necessary to protect the City and the bondholders. Covenant 7. Records and Accounts, The City covenants that it shall keep proper books of record and accounts of the enterprise, separate from all other records and accounts, in which complete and correct entries shall be made of all transactions relating to the enterprise. Said books shall at all times be subject to the inspection of the holders of not less than 10% of the outstanding bonds or their representatives authorized in writing. The City covenants that it will cause the books and accounts of the enterprise to be audited annually by an independent certified public accountant or firm of certified public accountants and will make available for inspection by the bondholders at the office of the Director of Finance of said City, a copy of the report of such accountant or accountants. The City covenants that it will cause to be published annually, not more than 120 days after the close of each fiscal year a summary statement showing the amount of gross revenues and the amount of all other funds collected which are required to be pledged or otherwise made available as security for payment of principal of and interest on the bonds, the disbursements from such revenues and other funds in reasonable detail, and a general statement of the financial and physical condition of the enterprise. The City shall furnish a copy of the statement to any bondholder upon request. Covenant 8, No l~Yee Service. The City covenants that, except to the extent that the City is required under agreements and/or contracts existing on the effective date of this resolution, no water or other service from the enterprise may be furnished or rendered to the United States of America, the State of California, the City, any municipal or public corporation or district or public agency or any private corporation or person free, and that, except to the extent that the City is required under agreements 11