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(h) Interest in Project Site <br /> As a condition of the Loan, the Governmental Agency agrees that it will demonstrate to <br /> the satisfaction of the Authority before commencing construction that it has or will have an <br /> interest in the site of the Project, including necessary easements and rights-of-way, as the <br /> Authority fmds sufficient to assure undisturbed use and possession for the purpose of <br /> construction and operation of the Project for the estimated life of the Project. <br /> (i) Operation and Maintenance of System <br /> The Governmental Agency covenants and agrees that it shall, in accordance with prudent <br /> hydroelectric utility practice, (i) at all times operate the properties of its System and any business <br /> in connection therewith in an efficient manner, (ii) maintain its System in good repair, working <br /> order and operating condition, (iii) from time to time make all necessary and proper repairs, <br /> renewals, replacements, additions, betterments, and improvements with respect to its System so <br /> that at all times the business carried on in connection therewith shall be properly and <br /> advantageously conducted; provided, however, this covenant shall not be construed as requiring <br /> the Governmental Agency to expend any funds that are derived from sources other than the <br /> operation of its System or other receipts of such System that are pledged under subsection (a) of <br /> this Section 2.02, and provided further that nothing herein shall be construed as preventing the <br /> Governmental Agency from doing so. <br /> (j) Records;Accounts <br /> During the Loan Term, the Governmental Agency shall keep accurate records and <br /> accounts for its System (the "System Records"), separate and distinct from its other records and <br /> accounts (the "General Records"). Such System Records shall be maintained in accordance with <br /> GAAP and shall be audited annually by an independent accountant, which audit may be part of <br /> the annual audit of the General Records of the Governmental Agency. Such System Records and <br /> General Records shall be made available for inspection by the Authority at any reasonable time, <br /> and a copy of such annual audit(s) therefor, including all written comments and recommenda- <br /> tions of such accountant, shall be furnished to the Authority within 210 days of the close of the <br /> fiscal year being so audited. <br /> (k) Insurance <br /> During the Loan Term, the Governmental Agency shall maintain or cause to be <br /> maintained in force, insurance policies with responsible insurers or self insurance programs <br /> 11 <br />