4 - City of Oxford

97768— Immon-onaele
MINUTE BOOK No. 24, CITY OF OXFORD
SECTION 5. That the bonds authorized hereby shall be payable, both as to
principal and interest, solely from the revenues derived from the operation of
the electric distribution system of the City of Oxford, as the same shall be
enlarged, improved and extended. No bond issued hereunder shall constitute an
indebtedness of the said City within the meaning of any statutory restriction,
limitation or provision, and the taxing power of said City is not pledged to
the payment of any of the bonds authorized, either as to principal or interest.
SECTION 6. That the City of Oxford, acting by and through the Mayor and
Board of Aldermen thereof, its governing authority, hereby covenants and pledges'
with the holders of said bonds as follows:
(a) That it will enlarge, improve, and extend the electric
distribution system of said City of Oxford, as described in the
preamble hereto, and that as long as any of the bonds or interest
coupons authorized hereby are outstanding it will operate
and maintain said electric distribution system as so extended
and improved.
(b) That, during the life of said bonds, the City of Oxford
will fix and maintain rates and make and collect charges for the
services and facilities of said electric distribution system as
so enlarged, improved and extended, without regard to the user
thereof, sufficient to provide for the payment of the principal
of and the interest on said bonds as the same shall mature and
accrue, to provide for the operation and maintenance of said system
in good repair and working order, and to provide a reasonable
sum for depreciation. The rates in force at the time of the
issuance of the bonds authorized hereby shall be revised promptly
if the revenues of said electric distribution system shall be
insufficient at any time to provide all sums required by this
ordinance.
(c) That, as long as any of said bonds or the interest coupons
shall remain outstanding, the said City shall carry and maintain
fire and windstorm insurance upon all of the buildings forming a
part of said electric distribution system, shall further carry
and maintain adequate public liability insurance, and shall further
carry and maintain upon all property and equipment of said
electric distribution system other than buildings, which may be
of an insurable nature, insurance of the type and kind carried
and maintained by utility companies, privately or municipally
owned, rendering services of a similar character in similar
communities in the State of Mississipppi. All such insurance
shall be taken for the benefit of the holders of the bonds of
said City which are payable from the revenues of said electric
distribution system and shall be in such amounts as are customarily
carried by public utility companies in similar circumstances.
The proceeds of all such insurance, except public
liability insurance, shall be deposited, when received, in the
ELECTRIC LIGHT FUND referred to in Section 7 of this ordinance,
and shall be used only for the maintenance and restoration of
said electric distribution system, or for the payment of the
principal of and the interest on the bonds above mentioned.
(d) That as long as any of said bonds are outstanding, the City
of Oxford shall not issue any additional bondspayable from the
revenues of said system, except upon one of the following conditions:
(1) Unless such bonds expressly shall be made junior
and subordinate in all respects to the bonds herein
authorized to be issued; or