Section 16999.7 - Contents of authorization of bonds(a) Unless otherwise provided in the ordinance, the bond committee shall determine by bond resolution the matters set forth in section 5 and either the ordinance or the bond resolution shall contain in substance: (1) A statement of the aggregate principal amount of bonds to be outstanding at any time under the bond resolution.(2) A statement of the priority or priorities in the application of utility revenues and a statement as to the revenues and funds available for such payment.(3) A covenant with the obligees of the bonds to pay on the respective due dates the amounts required to pay the interest on and principal of the bonds as specified in such bonds.(4) A covenant that the principal amount of bonds outstanding for the municipal utility will not exceed the aggregate of project costs on the date of issuance of the bonds.(5) A finding based on the report of the chief fiscal officer of the municipal utility required by section 8 that utility revenues will be sufficient to pay the principal of and interest on the bonds.(6) The determination of the form, terms and provisions of the bonds permitted by section 5 and of the method of sale, the terms upon which or the prices for which the bonds are to be sold or exchanged including, if desired, competitive bidding specifications.(7) Provisions for a sinking fund complying with section 9.(8) Provisions, if any, for granting a security interest in utility revenues which security interest shall be subject to any prior lien thereon of revenue bonds, which provisions may incorporate by reference the procedures which would otherwise be applicable if the city were a private corporation for profit.(9) The name of a fiscal agent who shall authenticate the bonds and a specification of the terms and conditions upon which the fiscal agent is authorized to authenticate the bonds.(b) Subject to currently applicable constitutional provisions prohibiting the delegation to any special commission, private corporation or association of any power to make, supervise or interfere with any improvement, money, property or effect of the city or perform any municipal function whatsoever and subject to other applicable provisions of this act, the ordinance or bond resolution may also contain: (1) Covenants with the obligees of the bonds or other provisions governing the issuance of additional bonds; the rights and remedies of obligees upon default and such other provisions as are deemed necessary or desirable in the interest of or for the protection of the city or of such obligees.(2) Agreements with any bank, bank and trust company or trust company appointing the same as paying agent or fiscal agent and containing appropriate provisions governing the deposit, custody and payment of moneys, the maintenance of accounts and records, the authentication, registration, transfer and exchange of bonds, the payment of principal of and interest on the bonds, the cremation or other disposal of cancelled bonds, the rights, duties, privileges and immunities of the paying agent or fiscal agent and such other matters as are customary or appropriate.(3) Agreements with any bank, insurance company or other appropriate entity providing additional credit or payment sources for the bonds including, without limitation, letters of credit, lines of credit and insurance. Such agreement may provide for payment or acquisition of the bonds if the city does not pay the bonds when due and may provide for repayment to the bank or other institution for a period of up to five years from the date of such payment or acquisition.(c) The covenants, terms and provisions made under subsections (a) and (b) for the benefit of the obligees of the bonds shall constitute contractual obligations of the city subject to modification (with such limitations as may be specified in the ordinance or bond resolution) by agreement with a majority in interest of the holders or registered owners of the bonds affected or such larger portion thereof as may be provided in the ordinance or bond resolution. 1982, Dec. 7, P.L. 827, No. 231, § 7, imd. effective.