Book 14 (January 1950 - July 1954) - City of Oxford

MINUTE BOOK No. 14, CITY OF OXFORDOEMENT - MERIDIAN~-----ll -aGsu~d by the electric system shall be reduced to the extent necessary to make the totalliabilitiBs assumed by the electric system equal to thetotal assets, ani such cf the is 9led anioutstanding bonds listed above not assumed by the electric system shall remain the responsibilityof Municipality's general funds. It is further understood andagreed that Mtmicipality's investmentin its electric system may at any time am from time to time be reduced by payments (other than taxequivalents or returns on investment) from electric systan funds to Municipality's general fund, butno such payment shall be made after said investnent has bem reduced to zero. All debt servicerequirement s relating to the cutstanding bonds assuJ!W3d by the electric system as provided in thisparagraph shall be met out of funds of Municipality's electric system.12. Rules and Regulat ions. Attached hereto and heJeby made a part hereof is a IISchedule ofRules and Regulatims. if Municipality hereby adopts said Schedule or Rules and Regulations. Theprovisions of said schedule may be amended, supplanented, or repealed by Munici~lity at any timeupon ten (10) days written notice to Authority setting forth the nature of ani reason for theproposed change. No change shall be made in said schedule, however, which is inconsistent with orin violation of any of the other provisions of this contract. In said schedule the termIIDistributor ll shall be construed to mean Municipality.13. Purpose of Contract. It is hereby recognized and declared that, pursuant to the obligationsimposed by the Tennessee Valley Authority Act of 1933 as amended, lIfunicipality' s operation of amunicipal electric distribution system and Authority's wholesale service thereto are undertakenprimarily for the benefit of ratep~ers and that Municipality shall receive from the operationthereof for the benefit of its General Fund, to be used for anypennissible municipal purpose, only(a) a return on any investment made fran general funds in the electric system, and (b) an amountin lieu of taxes, representing a fair share of the cost of government properly to be borne by suchsystem. In accordance with these principles, which are mutually recognized as of the essence of thisagreement, Municipality agrees to operate its electric system and to maintain its financial accountsand affairs in full and strict accordance with the provisions of this Power Contract.Munic ipality further agrees from time to time to supply Authority promptly with such informationin respect bt its electrical property and operatiCJ}s as Authority may reasonably re::}uest,including, not later than the first d~ of Septenber of each year, a complete rep