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<br />immediately take such reasonable steps as are necessary to comply with such requirements and recommendations.
<br />In making such report or survey the Consulting Engineers shall accept certified statements of the independent
<br />certified public accountants. Copies of each report or survey shall be placed on, file with the Issuer and shall be
<br />open to the inspection of any holder of obligations or other interested parties.
<br />During the period of construction of the project, the Consulting Engineers shall determine that all phases of
<br />construction of the project are being constructed pursuant to the plans and specifications, plan the progress of
<br />such construction, approve the form and content of construction contracts signed by the Issuer, including any
<br />penalty payments required as a result..of non-performance, and the performance and payment bonds required,
<br />arrange for proper permits, clearance of other construction documents as may be necessary from local, state or
<br />federal jurisdictions, and approve expenditures from the Construction Fund, as hereinafter provided.
<br />When each phase of the project has been substantially completed and placed in operation and use, the
<br />Consulting Engineers shall certify such fact to the Issuer and the same shall be deemed to be the completion date
<br />of each phase of the project.
<br />The Consulting Engineers shall also prepare a monthly progress report showing the status of the
<br />construction and acquisition of the project, the construction contracts entered into therefor, an estimated time
<br />schedule for completion, the percentage of completion thereof, the availability of funds for completion of the
<br />project and any other matters deemed advisable by such Consulting Engineers. Copies of such progress reports
<br />shall be mailed to the original purchaser of the Obligations.
<br />P. NO COMPETING FACILITIES. To the full extent permitted by law, the Issuer will not grant, renew or
<br />cause, consent to, or allow the granting, renewal, extension or expansion of any franchise or permit to any
<br />person, firm, corporation or body, or agency or instrumentality whatsoever, for the furnishing of services similar
<br />to those of the Facilities to or within the boundaries of the Issuer.
<br />Q ISSUANCE OF OTHER OBLIGATIONS. (1) The Issuer will not issue any other obligations payable
<br />from Revenue Sharing Trust Funds (as herein defined) received each year nor voluntarily create any lien having
<br />priority to or being on a parity with the lien of the Obligations and the interest thereon upon the Revenue
<br />Sharing Trust Funds. Any other obligations issued by the Issuer in addition to the Obligations herein authorized,
<br />payable from such Revenue Sharing Trust Funds, shall contain an express statement that such Obligations are
<br />junior and subordinate in all respects to the Obligations herein authorized as to lien on and source and security
<br />for payment from such Revenue Sharing Trust Funds.
<br />(2) Further, the Issuer will not issue any other obligations, except under the conditions and in the manner
<br />provided herein, payable from the Revenues of the Facilities, nor voluntarily create or cause to be created any
<br />debt, lien, pledge, assignment, encumbrance or other charge having priority to or being on a parity with the lien
<br />of the Obligations and the interest thereon, upon said Revenues. Any other obligations issued by the Issuer in
<br />addition to the Obligations herein authorized or Additional Parity Obligations provided for in subsection R
<br />below, payable from such Revenues, shall contain an express statement that such obligations are junior and
<br />subordinate in all respects to the Obligations, herein authorized, as to lien on and source and security for
<br />payment from such Revenues.
<br />R. ISSUANCE OF ADDITIONAL PARITY OBLIGATIONS. Additional Parity Obligations, payable on a
<br />parity from the Net Revenues of the Facilities with the Obligations, herein authorized, may be issued after the
<br />issuance of any Obligations, herein authorized, for the construction and acquisition of additions, extensions and
<br />improvements to the Facilities or for refunding purposes, in the manner herein provided and upon compliance
<br />with both of the following. conditions:
<br />(1) (a) There shall have been obtained and filed with the Issuer a certificate of an independent certified
<br />public accountant of suitable experience and responsibility: (i) stating that the books and records of the Issuer
<br />relating to the collection and receipt of Revenues derived from the operation of the Facilities have been audited
<br />by him for the Fiscal Year immediately preceding the date of sale of the proposed obligations or for any twelve
<br />(12) consecutive months period out of the eighteen (18) consecutive months immediately preceding the date of
<br />sale of the proposed obligations; (ii) setting forth the amount of Net Revenues, as defined herein, received by the
<br />Issuer for the audited period referred to in (i) above, with respect to which such certificate is made; (iii) stating
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<br />JAN 18197 �U 3k`i.,
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