Limitation on Encumbrances; Against Sale. Until the Crossover Date, the City covenants and agrees that it will not create, assume or suffer to exist any mortgage, deed of trust, pledge, security interest, encumbrance, lien or charge of any kind (including the charge upon property purchased under conditional sales or other title retention agreements) upon the Electric System which impairs the ability of the City to comply with its covenant set forth in Section 6.03 hereof. Until the Crossover Date, the City covenants that the Electric System shall not be sold, leased or disposed of as a whole or substantially as a whole if such sale, lease or disposal would impair the ability of the City to comply with its covenant set forth in Section 6.03 hereof.
Limitation on Encumbrances; Against Sale. The City covenants and agrees that it will not create, assume or suffer to exist any mortgage, deed of trust, pledge, security interest, encumbrance, lien or charge of any kind (including the charge upon property purchased under conditional sales or other title retention agreements) upon the Water System which impairs the ability of the City to comply with its covenant set forth in Section 5.3 hereof. The City covenants that the Water System shall not be sold, leased or disposed of as a whole or substantially as a whole if such sale, lease or disposal would impair the ability of the City to comply with its covenant set forth in Section 5.3 hereof. Notwithstanding any other provisions contained herein, the City may: (i) sell or dispose of customer connections (and related distribution lines) located outside the City limits; (ii) take all action necessary to comply with its existing agreements with Xxxxx Xxxxx Water District, and any subsequent implemental agreements; and (iii) enter into, and take all actions necessary to fulfill its commitments under, contractual agreements concerning water service to all or part of any areas which are annexed to the City after the sale and delivery of the 2015-A Bonds, with parties organized to provide water service to all or part of any such area. Any proceeds from the sale or disposition of any part of the Water System or the granting of any service rights or privileges pursuant to the preceding sentence shall be used to defray the cost of renewals, replacements, additions and extensions to the Water System or shall be held for the redemption of callable bonds prior to maturity or open market purchase of 2015-A Bonds or Senior Bonds then outstanding. Any proceeds from the sale or disposition of any part of the Water System shall be placed in the Revenue Account.
Limitation on Encumbrances; Against Sale. The City covenants and agrees that it will not create, assume or suffer to exist any mortgage, deed of trust, pledge, security interest, encumbrance, lien or charge of any kind (including the charge upon property purchased under conditional sales or other title retention agreements) upon the Electric System which impairs the ability of the City to comply with its covenant set forth in Section 6.03 hereof. The City covenants that the Electric System shall not be sold, leased or disposed of as a whole or substantially as a whole if such sale, lease or disposal would impair the ability of the City to comply with its covenant set forth in Section 6.03 hereof.
