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Page 19 <br />the operation of the Sewer System for the preceding fiscal year were sufficient <br />in amount to provide for the annual cost of operation, repair, maintenance and <br />depreciation of the Sewer System after the then contemplated extensions, <br />betterments and improvements shall have been completed and placed in <br />operation, and to leave a balance equal to at least one hundred forty per cent <br />(140%) of the maximum amount that will become due in any year for principal, <br />interest and service charges on all Sewer Revenue Bonds then outstanding and <br />the Sewer Revenue Bonds then proposed to be issued. <br />Section 16. That it is covenanted and agreed by the City with the <br />holders of the bonds, or any of them, that the City and the Sewer Committee <br />will faithfully and punctually perform all duties with reference to the Sewer <br />System required by the Constitution and laws of the State of Arkansas, including <br />the charging and collecting of reasonable and sufficient rates lawfully established <br />for services rendered by the Sewer System, the segregating of the revenues of <br />the Sewer System as herein required and the applying of said revenues to the <br />respective funds herein created and referred to. <br />Section 17. That the City and the Sewer Committee covenant and <br />agree that they will maintain the Sewer System in good condition and operate <br />the same in an efficient manner and at reasonable cost. While any Sewer <br />Revenue Bonds are outstanding, the City and the Sewer Committee agree that <br />they will insure and at all times keep insured, in the amount of the actual value <br />thereof, in a responsible insurance company or companies authorized and quali- <br />fied under the laws of the State of Arkansas to assume the risk thereof, all <br />properties of the Sewer System against loss or damage thereto from fire, <br />lightning, tornado, winds, riot, strike, civil commotion, malicious damage, <br />explosion, and against loss or damage from any other causes customarily in- <br />sured against by private companies engaged in a similar type of business. The <br />