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854 (2)
CITY-OF-BATESVILLE
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854 (2)
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4/30/2019 4:20:10 PM
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on <br />N%NW independent certified public accountant at least once each <br />year, and a copy of the audit shall be delivered to the <br />Trustee and made available to interested holders and registered <br />owners. In the event the City fails or refuses to make the <br />audit, the Trustee, or any holder and registered owner of the <br />bonds may have the audit made, and the cost thereof shall be <br />charged against the Operation and Maintenance Fund. <br />Section 20 <br />The City covenants and agrees that it will <br />maintain the System in good condition and operate the same <br />in an efficient manner and at reasonable cost. While any bonds <br />authorized hereby are outstanding, the City agrees that it will <br />insure and at all times keep, insured, in the amount of the <br />full insurable value thereof, in a responsible insurance company <br />or companies authorized and qualified under the laws of the <br />State of Arkansas to assume the risk thereof, properties of <br />the System, to the extent that such properties would be covered <br />by insurance by private companies engaged in similar types of <br />businesses, against loss or damage thereto from fire, lightning, <br />tornado, winds, riot, strike, civil commotion, malicious <br />damage, explosion, extended coverage and against any other loss <br />or damage from any other causes customarily insured against <br />by private companies engaged in similar types of businesses. <br />The insurance policies are to be taken with companies approved <br />by the Trustee, are to carry a clause making them payable to <br />the Trustee as an additional insured as its interest may appear, <br />and are either to be placed in the custody of the Trustee or <br />satisfactory evidence of the insurance shall be filed with the <br />Trustee. In the event of loss, the proceeds of such insurance <br />shall be applied solely toward the reconstruction, replacement <br />or repair of the System, and in such event the City will, with <br />reasonable promptness, cause to be commenced and completed the <br />reconstruction, replacement and repair work. If such proceeds <br />are more than sufficient for such purposes, the balance remaining <br />
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