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dences and structures within its corporate limits which can use the facilities and services of the System to connect therewith and use the facilities and services thereof and to cease the use of all other facilities. The Issuer will not grant a franchise for the operation of any competing water or sewer .system. (U) Government Approval of Financing. Anything herein to the contrary notwithstanding, while the Government is the holder of any of the Bonds, the Issuer will not borrow any money from any source in connection with making extensions of or impro- vements to the System, other than normal maintenance of the System, or permit others to do so, without obtaining the prior written consent of the Government. (V) Fidelity Bond. The Issuer will require each employee who may have possession of any revenues of the System to be covered by a fidelity bond written by a responsible indemnity company in an amount fully adequate to protect the Issuer from loss. (W) Reimbursement of Advances and Interest Thereon. While the Government shall be the holder of any of the Bonds, the Government shall have the right to make advances for the payment of insurance premiums and/or other advances which, in the opinion of the Government, may be required to protect the Government's security interest- In the event of any such advances, the Issuer covenants and agrees to repay the same, together with interest thereon at the same rate per annum as specified in the Bonds, upon demand made at any time after any such expenditure by the Government. Any such amount due the Government shall be secured by a pledge of and lien upon the Gross Revenues, on a parity with the lien thereon of the holders of the Bonds, and payment thereof shall take priority over any other payments from the Reserve Account for the Bonds. ARTICLE IV MISCELLANEOUS PROVISIONS 4.01 Modification or Amendment. No material modifica- tion or amendment of this Instrument may be made without the con- sent in writing of the holders of two-thirds or more in principal amount of the Bonds and Notes then outstanding; provided, however, that no modification or amendment shall permit a change in the maturity of such Bonds or Notes or a reduction in the rate of interest thereon, or in the amo::nt of the principal obligation, or affect the unconditional promise of the Issuer to charge and collect such rates, fees, rentals and charges f.o- the use of the -19-