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and maintain debt service reserves and to provide a depreciation fund, all as set forth in the Authorizing Ordinance. ® IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts, conditions and things required by the Constitution and statutes of the State to exist, happen and be performed precedent to and in the issuance of this bond do exist, have happened and have been performed in regular and due time, form and manner as required by law; that this bond does not exceed any constitutional or statutory limitation of indebtedness; and that provision has been made for the payment of the principal of and interest on this bond, as provided in the Authorizing Ordinance. IN WITNESS WHEREOF, the City of Batesville, Arkansas has caused this bond to be executed in its name by its Mayor and City Clerk, thereunto duly authorized, and its corporate seal to be affixed, all as of the day of 2010. [The Bond shall contain signature spaces, a registration certificate and record of payment of advances.] Section 6. The rates charged for services of the System heretofore fixed by ordinances of the City and the conditions, rights and obligations pertaining thereto, as set out in those ordinances, are ratified, confirmed and continued. The City covenants and agrees that the rates established will produce gross Revenues at least sufficient to pay monthly operation, maintenance and funded depreciation • expenses of the System, pay the principal of and interest on all outstanding bonds to which Revenues are pledged ("System Bonds"), as the same become due, pay the Financing Fees as the same become due, and create and maintain any required debt service reserves ("Required Payments"). The City covenants always to maintain rates (including increases as necessary) which will provide for the Required Payments. The rates for sewer service shall not be reduced without the prior written consent of the Commission and the Bondholder. Section 7. All of the provisions of the 2001 Ordinance and the 2002 Ordinance (the "Senior Ordinances"), except those provisions clearly inapplicable hereto or in direct conflict herewith, including, without limitation, the provisions pertaining to the collection, the investment and the handling of Revenues and funds, to the operation, maintenance and care of the System, to vacancies in offices, and to the depreciation of the System, are hereby made applicable hereto and are incorporated herein by reference as though fully set forth at this point. The effect of the above covenant shall be to continue the applicable provisions in full force and effect until the bond is paid, or provision made therefor, even after the payment of the Senior Bonds. Section 8. The City covenants that it will continuously operate the System as a revenue-producing undertaking and will not sell or lease the same, or any substantial portion thereof, without the prior written approval of the Bondholder and the Commission; provided, however, that nothing herein shall be construed to prohibit the City from making such dispositions of properties of the System and such replacements and substitutions for properties of 0 6